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.

From Civil Service to talented handmade ceramics making

Ceramics have become a vital part of decorative item as people strive to make their homes look appealing. Gloria Asare, the founder of a ceramic label, Glo Asa Universe Company Limited is one of such people and shares her story with Ama Amankwah Baafi




In a bid to satisfy her growing interest in using ceramics to make items that are useful and thoughtful, Madam Asare quit work as a civil servant. Not only does she design her own products at the Glo Asa workshop located in Kasoa but also does flowering.

She initially produced to sell on the local market until her brother suggested she tried exporting. That was when she registered her company in the year 2000, went through the export school and subsequently developed her company profile.

Ceramics are a class of materials made of non-metallic substances such as clay. Potters make ceramic items by molding, heating and then cooling to form objects such as pots.



THE BRAIN BEHIND THE BUSINESS

She told the GRAPHIC BUSINESS that it was challenging to start a business but she took inspiration from other business women who had made a career from doing things that they loved. “I loved designing so I actually wanted to go into clothing and boutique but I realised that when I started my house, anything I put there concerning flowers or pots people admired it. Sometimes I ended up selling them,” she recalled.

People encouraged her to go into ceramics so she decided to use the land she had acquired at Kasoa to work, due to disturbances from land guards. Now she has her own ceramic designs, also makes her own flowers and tries to introduce clients to what each pot can be used for, whether on the veranda, at the dining room, on the table, etc and employs 10 permanent staff but adds 20 more when she gets orders.

Doing her own business gives her the opportunity to work flexibly and hard hence she is able to concentrate on it without too many other responsibilities. “My designs are really different, the creative technique that I use to make them always interests people and I hope everyone who chooses one feels that they have something out of the ordinary.”

Her target market

Madam Asare has found her designs to appeal to people interested in owning things that really stand out. She has seasonal designs but sometimes repeats a design when people like them.

She chooses the events she attends carefully in order to find her target market and trade fairs in Nigeria are key events for her, as Nigeria is her biggest market. She also markets her products in Europe and America.

“I put a lot of energy into marketing my products. You can make beautiful things but no one can buy them if they do not know about them. Attending local and international fairs really make a difference to my marketing opportunities. People get in touch with me after such fairs to make orders.”

She also recognised that Europe and America have specific colour trend for each year and so she takes it into consideration when making ceramics, particularly when painting the ceramic. For such markets, she also decorates her ceramics with beads.

Time used in producing depends on the pot size and design. She said she washes the clay, mould it into ball to get it starchy, after which she starts moulding. It should also be allowed to dry well to ensure durability before designing starts or else they begin to crack.

She dismissed claims that ceramics are expensive to be purchased for interior decoration, but said the cost varies depending on the quality and size. According to her, there are many ways of making a selection of ceramic pots and vases, depending on the wall paint colour; size of the room; and the design on the vase may also match with the type of flowers placed in it.

However, she cautioned that if one wishes to place ceramic pots in the garden, then the quality of the pots would certainly matter because these pots need to be highly durable and weather resistant.



SUCCESSES AND CHALLENGES

Though she has no awards yet, she is happy she has made significant investments. She now lives in her own house at a good location. Her products are highly appreciated outside Ghana and she has moved all the way to far away Calabar in Nigeria to market her products and can also be found on Google map.

Breakage is her major challenge. Cumbersome border controls make it difficult for her to honour an order. “Transporting my products within West Africa is difficult. At each point they offload all goods on board and because they not professionals, most of my products due to its delicate nature get broken. In fact, it is painful to lose a pot,” she complained.

Access to credit facilities is also difficult. She told the GRAPHIC BUSINESS she has not trained many Ghanaians yet because most of the youth see ceramic making as a difficult venture and so prefer flower arrangement. Yet, people in countries like Nigeria show interest to the extent that some non-governmental organisations contract her to teach the youth. Even at the recent trade fair in Lagos, five people approached her to showing interest to follow her to Ghana to train in ceramics.

She believes the Ghana Export Promotion Authority (GEPA) is doing so much to support people in the creative sector, unlike their fellows in other countries who do not have that opportunity to get their goods freighted to any fair destination and stands secured for them.

Periodically, she undertakes training programmes to upgrade her skills and knowledge.



FUTURE PLANS

She hopes to put up an ultra modern showroom on her eight plots of land at Kasoa, where one can find anything ceramic. Above all, she will be working hard to move her business forward and hope to enjoy the challenges this will bring. She also has plans to further her education.

Hobbies

She enjoys cooking good food, taking good wine and having people around to converse with. She also loves to play lap top games.

Her advice to other women who aim to start their own businesses

She advised that they should be organised, work out their business plan before they begin, although things never go entirely to plan, they need to have things to aim for in order to succeed.

“There are poorly designed, poorly crafted, and unoriginal products in the market. If you want to create a product that has value, there are no shortcuts. So do not rush it. Take your time to make something original and you will feel rewarded even before your stuff starts selling,” she said. GB

Businesses look for better years ahead

THERE are mixed feelings about the aftermath of the elections and economic stability. While formal sector businesses are bullish, the informal sector remains bearish. Charles Benoni Okine, Samuel Doe Ablordeppey & Ama Amankwa Baafi report




THE business community is expecting a much better business climate and economic activity next year.

The community also expects that instability in the exchange rate which had fuelled marginal inflation would correct to impact on the policy rate of the Bank of Ghana and subsequently on the base rate of commercial banks.

The Deputy Managing Director of Fidelity Bank, Mr Jim Baiden, told the GRAPHIC BUSINESS in a telephone conversation that the banking industry was hoping to see a more stable economy with the elections now over.

“We expect that post-election period will be more stable. We also expect interest rates to fall and make the cost of borrowing lower and also impact positively on inflation,” Mr Baiden said, explaining that the year had been very challenging for commercial banks, particularly with the tightening administrative measures announced by the Bank of Ghana (BoG).

He said the banking industry had seen difficult times in 2012 following the contractionary stance the Bank of Ghana took to check excess liquidity. He said the exchange rate restrictions had affected liquidity in the banking industry and could slow down the growth in deposits, especially as the BoG treasury rates competed with the banks’ rates.

Government in its 2012 Budget Statement hoped to achieve a real non-oil Gross Domestic Product (GDP) of 7.6 per cent, real overall GDP growth of 9.4 per cent, average inflation of 8.7 per cent, end-period inflation of 8.5 per cent and gross international reserves of not less than three months of import cover for goods and services and an overall budget deficit equivalent of 4.8 per cent of GDP.

Mr Baiden’s projects follow trends established by various factors and think tanks which have predicted a favourable 2013.

Foremost, the BoG increased the policy rate from 12.5 per cent in January to 13.5 per cent in February and to 14.5 per cent in April this year. The current 15 per cent policy rate took effect in June this year.

In addition to its open market operations characterised by more treasury bill issues, the central bank has also taken some administrative measures to tighten the monetary system. This includes banks keeping mandatory reserves over cedi and foreign currency deposits in cedis and instructing all banks to provide 100 per cent cedi cover for their off-shore account balances to be maintained at the BoG.

With oil production expected to peak at 120,000 barrels bopd, the Centre for Policy Analysis (CEPA), has projected that growth would rebound to 10.5 per cent in 2013 before falling back to 9.0 per cent the following year.

CEPA projected in its 2012 Ghana Economic Review and Outlook that the non-oil sector would also grow at an average growth rate of 8.5 per cent between 2011 and 2014.

The cedi and foreign exchange inflation is expected to be contained because unlike former times when the government dolls out funds to retire maturing bonds and treasury bills, this time it has adopted a new policy where it issues medium-term bonds to pay maturing ones.

This will reprieve the system of so much cash which often leads to inflation.

On the political agitations of some New Patriotic Party (NPP) members for their candidate Nana Akuffo Addo to rather be declared the winner of the December 7 polls, the business community said they were not worried over the current magnitude.

“From where we sit, the agitations are not widespread and there should be no cause for alarm. It is business as usual for us,” the deputy managing director of Fidelity Bank told the GRAPHIC BUSINESS.

The Export Manager of Mohinani Group, Mr Martin Ahovi, also told the GRAPHIC BUSINES that the aftermath of the elections had not in any way affected their business.

"Everythin is cool. Business is the same as before or throughout the year. We are not affected by anything. I will even say that business is booming because it is Christmas period," he said.

He said the company's participation in the made-in Ghana solo exhibition in Liberia had already started yielding fruits as the company had just exported a 40 footer container load of goods to that country.

The Mohinani Group, which deals mainly in polythene, polypropylene films, shopping bags, poly tanks among others, is also projecting a better economy and business climate next year.

“The company is looking forward to improve on its exports next year,” Mr Ahovi stated.

In sharp contrast, traders in the Central Business District of Accra, Kaneshie and the Kwame Nkrumah Circle area are expressing grave concerns about the events after the 2012 general elections which saw the ruling National Democratic Congress retaining power for another four-year term.

According to them, violent attacks in the markets by armed thugs is making the markets unsafe, hence the reduction in the number of people who buy from market, particularly around this time of the year when Christians are about shopping for the Yuletide next week.

Consequently, they have called on the government to push change the election date from December to about October so that it does not affect the business in the markets while reducing tensions prior to the celebration of the Yuletide.

Following the declaration of the election results by the Electoral Commission (EC), the opposition New Patriotic Party (NPP) supporters have gathered at the Obra Spot at the Kwame Nkrumah Circle in protest against what they described as rigging of the elections in favour of the sitting President.

According to the traders there, the number of people who normally buy some of the wares are no longer doing so because they fear standing too long for fear of what might happen next.

One trader who sells kids clothing in a corner near the Tip Toe Lane, Adjoa Konadu Abrefi, said “we as traders ourselves are scared because after every hour or so, we hear shouts of ‘they are coming, they are coming’ and then people scatter all over the place”.

That, she said, was negatively affecting them because for fear of being attacked people do not patronise their products.

“This is our season and the issues surrounding the election are not helping us at all; We therefore call on the security to restore calm while the leaders of the parties also call their supporters to order”, she said.

Madam Hannah Morrison alias, Area Mama, at the Makola market, where there are reports of armed thugs supposedly from the NPP terrorising people in the market for supporting the NDC, described sales after the elections as “slow and worrying.”

“We have invested so much in buying our wares but the people are not coming the way we expect it, particularly at this time of the year when all shopping is about Christmas”, she said.

Madam Morrison attributed the reason for the slow sales to the pockets of violence around the market and called for maximum security and reassurance from the political parties and the security agencies that the country is safe.

“Personally, I want the election date to be moved way ahead of the Yuletide so that by the time the festivities are due, we will have peace of mind to do our business and everyone will move around without fear,” she said.

Naa Amerley Torto also a trader who sells greeting cards at Makola said “it seems people have forgotten there is Christmas in the corner and therefore, they seem engulfed in the elections and the aftermath”.

She wondered why elections should be fixed around a festivity such as Christmas because it affected sales, particularly for the Yuletide is concerned.

Meanwhile, the two political parties have committed themselves to ensure peace and have also prevailed on their supporters to be calm.

I don’t give up easily – says Ijeoma Ogbugo

Playing in the construction industry as a woman is different, the environment has always been bias towards men. It takes unwavering purposeful women like Ms Eunice Ijeoma Aku Ogbugo, to break this myth. Ama Amankwah Baafi reports


Thirty-one year old Eunice has been in the news lately, being awarded not only as the youngest female civil engineer who owns a construction company, but most importantly for excelling in her chosen field of endeavour.

She was decorated with two awards for Business Excellence and a Female Personality at the 2012 edition of the National Youth Achievers Awards ceremony.

Ms Ogbugo told the GRAPHIC BUSINESS at her office in Tema that “I am a soft speaker but I have inner tenacity, a persevering spirit and I don’t give up easily.”

She stressed that challenges were yet to make her give up, so much also because I had no option.”

She added that “I focus very much and I have a fighting spirit, I won’t take no for an answer. No matter how hard I get knocked, I rise again and forge ahead.”

THE STORY OF EUGO TERRANO LTD

After graduating from the Kwame Nkrumah University of Science and Technology (KNUST) with a degree in Civil Engineering in 2004 at the age of 24, she worked with Contera, an engineering consultancy firm.

While working there she realised that being confined to an office area to work was not her calling and therefore undertook a six-month course in entrepreneurship in June 2004 to enable her start her own company.

As divine test for her, Ms Ogbugo performed a fee based job for Jogis Real Estate Developers, when she was doing her National Service, which helped her to save up to start up her own business. This helped her to focus on Eugo Terrano Limited which she incorporated in December 2004.

The Tema based Eugo Terrano Limited, coined from her names Eunice and Ogbugo (EUGO), is a construction firm, which started business in January 2005. The name TERRA is the Italian word for Earth and ‘NO’ affixed to make it rhyme with EUGO.

Though an indigenous company, the name gives it an international appeal.

Ms Ogbugo explained that the main rationale for establishing the company was to create jobs and construct professionally to lift up the image of the construction industry.

In less than 10 years of operation, the clientele of Eugo Terrano include the Department of Urban Roads; the Department of Feeder Roads; the Ghana Highway Authority and the Ministry of Water Resources, Works and Housing, with contracts scattered in regions such as the Eastern, Volta, Brong Ahafo and Greater Accra. The company also performs contracts for the European Union and the African Development Bank (AfDB).

“I was virtually doing everything on my own right form purchasing of tender documents, preparing the tender documents, going through the bidding process, then upon winning, sourcing for financial assistance from banks, carrying out the accounting, site supervision, geodetic engineering, procurement till successful execution and completion of the work,” she said.

SOME OF EUGO’S PROJECT

The company’s first major project was the grading of Ho Polytechnic Down Roads in the Volta Region. Some of its current projects includes the GH¢7-million Upgrading of the Techimantia-Akomadan road in the Brong Ahafo Region. The company has also completed a Rectangular Storm drain at Goaso.

Eunice said her company’s choice of project was strategic and influenced by a number of factors such as location, source of funding and client.

“Accra is pretty much congested because so many contractors are working here. However, we see that the rural areas also need to be developed. We decided to concentrate outside Accra where we will be needed most,” she explained.

CHALLENGES

The managing director of Eugo Terrano Ltd said had overcome many challenges. These include delay in payment after execution of projects, which brings along a lot of harassment, as a woman in a male dominated industry.

“You get negative feedback because of your gender, so you have to be tough to be able to rub shoulders with the men. People also expect that as a young entrepreneur, the status quo is that you have to complete school and get employed, gain experience for a number of years before you can think of doing your own business,” she said.

Her patrilineal background as Nigerian also gave her a lot of challenges with the banks, as bankers threaded extra cautiously before dealing with her.

ADVICE

Eunice believes that people just need to look beyond gender and age and focus ones capabilities rather than equating youthfulness to inability to achieve, adding that the government also needed to pay contractors promptly.

“The payment process is cumbersome and delays payment unnecessarily since every contract has its own uniqueness,” she lamented, adding “everybody thinks you have to be a politician to get contracts.”

LOCAL VS FOREIGN CONSTRUCTION COMPANIES

Comparing local and foreign construction companies, Ms Ogbugo said the difference had to do with organisational structure and managerial skills, with the foreign companies doing generally better.

“Local contractors are entrepreneurs who have not been able to migrate to become corporate entities, because they have not put in the proper structures, processes, policies, procedures and systems.

She said local contractors were also unable to attract the highly qualified and capable technical and administrative personnel because of fear of delay in payment.

ACHIEVEMENTS

Eugo Terrano has been able to successfully migrate from a small medium enterprise (SME) into a corporate entity and Ms Ogbugo vowed that the company as ready to change the face of the construction industry in Ghana.

The company is implementing steps to establish a Project Management Unit, a Corporate Affairs Unit, as well as the Eugo Foundation – Corporate Social Responsibility arm of Eugo Terrano Limited.

OUTLOOK

While she believes she is on course, Ms Ogbogu says there was still a lot of room for improvement. The immediate plan is to grow Eugo Terrano into Ghana club 100, be number one when it comes to construction, to go international and possibly list on the Ghana Stock Exchange at a point.

COURSES AND HOBBIES

Ms Ogbogu has also taken a lot of courses such as in Human Resource Management, Procurement, Accounting, and Good Corporate Governance and Project Management.

Eunice loves reading, especially non-fiction: “it is a continuous learning process for me,” she said. She also likes swimming and engaging in church activities.

FAMILY BACKGROUND

A mother of one, Eunice hails from Tegbi near Anloga in the Volta Region, has three siblings and three step siblings.

Role of exhibitions in promoting intra-regional trade

Many will be surprised to learn that the army which is often associated with doing battle to protect the country’s territories, can also dance and perform to entertain its compatriots.


A detachment of the men in uniform belonging to Ghana’s Battalion (GhanaBat) to the United Nations Mission in Liberia (UNMIL), recently staged a spectacular cultural to the admiration of representatives of government, businesses, entrepreneurs and individuals.

The occasion was Ghana’s solo exhibition in the Liberian capital, Monrovia, where the GhanaBat (UNMIL) members showcase another side of the country’s strength – rich cultural heritage and enormous tourism potential.

This was just an appropriate showcase to send a clear signal to the rest of ECOWAS that Ghana had a wide array of non-traditional exports many of which were on display at the solo exhibition.

A delegation of about 44 exhibitors participated in the fairs in Liberia and later to Lagos, Nigeria to tap into the enormous opportunities that trade exhibitions offer businesses and entrepreneurs to develop and harness market potential, especially as market access issues have become very important in today’s competitive global world.

With support from the Export Development and Agricultural Investment Fund (EDAIF), the Ghana Export Promotion Authority (GEPA) is currently focusing on increased market access in the sub-region.

The GEPA, under the Ministry of Trade and Industry (MOTI), is responsible for promoting non-traditional exports (NTEs). It does this through various means including attending fairs and organising solo exhibitions of made-in-Ghana products in targeted markets.

Such exhibitions, funds permitting, should be organised frequently and must be a continuous process.

“We realise that trading among ourselves is better and easier than going to the international world which has a lot of requirements. The market in the sub-region is big with a population of about 300 million. Also from experience, we realise a lot of our products go to the sub-region so it is better for us to do business among ourselves,” the acting Chief Executive Officer of the GEPA, Mr Stephen Normeshie, notes.

However, he said, the new focus did not mean that the authority was abandoning the European market, saying “currently the EU is the largest market for our NTEs, but we also want to develop the sub-region in addition to the developed world so we can ensure that the NTE sector does not only exceed the set target of US$5 billion by 2015, but also contribute more than a quarter of total exports from Ghana”.

This year, Ghanaian businesses and entrepreneurs have participated in eight exhibitions in the sub-region alone and two international ones –Ambiente in Germany and Izmir in Turkey.

Mr Normeshie said Ghana can maximise the benefit of exhibitions through research to determine market demands and provide accordingly.

“Ghana’s imports are more than exports which put pressure on the cedis, therefore if we are able to send our products outside more it will help the country.”

Over 40 Ghanaian companies from different product sectors participated in the solo exhibition in Liberia from 23rd to 31st October 2012. A variety of products, including pharmaceuticals, household disinfectants, detergents, herbal products, Shea butter and soaps were on display.

Others were, textiles and garments, woodcraft, straw baskets, beads & beaded items, footwear, cosmetics, hair products, plastic packaging, lubricating oils, animal health products, aluminum cook wear and roofing and medical care products.

Other Ghanaian companies engaged in the provision of quality water and general civil engineering works, total survey and mapping systems, printing, etc also participated in the exhibition.

Some exhibitors told the GRAPHIC BUSINESS that the exhibition was generally good. Mr George Amissah of Daysah Ventures, producers of Green-Life morning a powder, sufficient gari moringa and natural slim tea, said he was able to make inroads.

“Four big supermarkets such as Payless Super Store, Stop and Shop Supermarket, UN Drive and Exclusive super stores readily accept my products. I am still talking with other interested groups. In fact, the gari moringa is an adored product. The people of Liberia relish it,” he said.

Hajia Fati of Alagie & Fati’s Co. Ltd, makers of shea butter cream and black soap said all their products sold out and did not come back with a single product. She said the company was able to secure several contacts such that they have brought the GEPA on board to help them finalise the deals.

Mr Samuel Ohene Budu of JOISSAM Ghana Limited, water solutions provider and general civil engineering works contractor, said the company’s prospects looked promising after several interactions with players in the sector in Liberia.

Yet, a few entrepreneurs such as Cephas Bowman of Bowman Kente Weaving said patronage was not so encouraging and blamed it on the venue which he said was quite far from the city centre.

Most of the exhibitors have expressed the desire to open up shops in Monrovia Liberia, realising their taste for made-in Ghana products.

Already, Yvonne Exclusive Designs, fashion designers, has taken the lead to set up shop in Monrovia.

The Assistant Director of Public Affairs at the National Oil Company of Liberia, Madam Fatu Gbedemah, who visited the fair, was happy that it presented a good opportunity for the Liberians to see what Ghana had to offer and learn some best practices.

“The exhibition needs to be organised more often. Liberia needs to concentrate on entrepreneurship and the exhibition is a sure way to get people to aspire to be innovative and come out with their own ventures,’ she said.

“Keke Maruwa” in Lagos

Tricycle, generally referred to as Keke Maruwa, is a means of transport in Nigeria. The three-legged ride with a bucket officially designed for three passengers minus the rider is exceptionally popular in Nigeria’s political capital, Lagos.


Officially, the cycle is supposed to carry three passengers. But as some taxis and trotro are often seen carrying more passengers than they are officially meant to, Keke is also use to breaking road traffic rules in West Africa’s most populous country.

When that happens, the fourth ‘unofficial passenger’ sits by the driver instead of sitting in the bucket.

Keke is vehemently competing with commercial taxis and buses in the country. Indeed, they are a major means of movement for humans and goods. The services and charges of the Keke vary and they perform same functions as commercial taxis, including hire services.

Unofficial reports have it that the Tricycle was promoted by Buba Marwa, a former military administrator of Lagos who served between 1996 and 1999.

Although Keke has gained popularity as an affordable means of transport for people and goods throughout Nigeria, city authorities have confined its operations to specific routes where commercial motorbike riders are not allowed to operate on.

Commercial motorcycles, popularly called Okada, were banned from operating in the city center over six years ago within the city centre.

The Lagos Governor, Babatunde Fashola, is reported to have urged residents of the state to endure whatever inconveniences the restriction of Okada riders from the state metropolis might have caused them.

He said “Okada will not be our transportation model in this state. Other states have banned it and heaven did not fall in those states. Our state will not be a dumping ground for motorcycles. But instead of banning it in Lagos, what the government has done was to restrict their operations on 475 roads out of 9,000.”

He assured the residents that the legislation would be of great benefit to the people of Lagos in the long-run. “There will be no gain without some pain attached to it. And every resident of Lagos should be ready to sacrifice for the reward that would come in a short time,” he said. GB

Activa and Coface introduce credit insurance

Activa International Insurance Company (ACII) in partnership with Coface has introduced a credit protection insurance product into the market to insure companies against the risk of financial default by their clients both on the domestic market and for export.


A partnership agreement between the two companies has consequently been signed to that effect and the product is expected to fuel economic activity by facilitating access to bank loans for businesses in Ghana and to the receivables purchase facilities offered by banks.

Activa is a member of the Pan-African insurance group, Group Activa Assurance while the Coface Group is a worldwide leader in credit insurance.

The Managing Director of ACII Ghana, Mr Steve Kyerematen at the signing ceremony in Accra said the partnership is in line with series of innovations Activa had brought to the insurance market in Ghana.

He said Activa had provided a wide range of general insurance products and some niche products including Assets Mark III policy (a policy that combines 20 optional covers both personal and commercial lines including property, business interruption, liability and transit covers). Products like medical malpractice, clinical trials, directors and officers’ liability are also available.

Mr Kyerematen noted Ghana has done a lot to achieve lower middle income status and the nature and character of the economy is also evolving, especially with credit control, therefore the introduction of credit insurance is a further step in this direction of an emerging economic activity.

Also, he said the partnership gives Ghana an opportunity to be placed on international financial market and that the partnership is an additional impetus for companies to look to Ghana looking at the insurance market.

“We at Activa are committed to providing credit insurance security, world-class services and solutions to clients in the insurance market. Quiet recently we were involved in sponsoring a road safety programme as an element of our corporate social responsibility. We as the insurance sub-sector will continue to contribute our quota in projecting the image of Ghana and improving the economy,” he added.

The Director General, Coface Services Maghreb, Mr Jean-Marc Pons said Coface choose to partner Activa because of its expert and world-class insurance services and coverage across 34 countries in Africa.

He said Coface helps companies evaluate and mitigate risks by proposing its assessments of country, sectoral and credit risk. The credit control insurance provides a solution to protect a company against customer default at any time and will be able to redeem in case of customer default.

The Regional Sales Manager, Maghreb, West and Central Africa of Coface, Mr Bagneki Hugues Olivier explained since trade receivables is an important asset of a company, the credit insurance provides a protection as companies can use it as a risk management tool to rectify bad debt collection.

Cocoa price increase

The producer price of cocoa for the 2012 / 2013 season has been increased from GH¢3,280 per tonne to GH¢3,392 per tonne.


Thus, 64 kilogrammes of cocoa will now sell at GH¢212 and not the GH¢205 that it was in the previous cocoa season.

The new price represents about 78.42 per cent of cocoa prices free-on-board (FOB), estimated at about GHc4,325. The prices take effect from Friday, October 12.

This is the fourth consecutive time since 2009 that the producer price for cocoa has been increased. The price rose from GH¢75 per a 64 kilogramme bag of cocoa in the 2007/2008 cocoa season to the present GH¢212 per bag in the 2012/2013 season.

The Minister of Finance, Dr Kwabena Duffuor, announced the new price at a news conference in Accra today (12/10/112).

Dr Duffuor said the upward review in the price comes at the back of falling cocoa prices in the world market. Cocoa prices have fallen from US$3,000 in the 2011/2012 cocoa season to currently average at a little over US$2,300.

Dr Duffuor, who is also the Chairman of the Producer Price Review Committee (PPRC), said the government remained committed to ensuring that the welfare of cocoa farmers is continuously enhanced.

“In fulfillment of this commitment, government has decided to reduce its share of the 2012/2013 cocoa export duty in order to raise the producer price paid to our hardworking cocoa farmers. This decision was taken to increase the earnings of farmers so as to enhance their welfare,” the minister said.

He emphasised that government would continue to support interventions in the cocoa sector, including the pests and disease control (mass spraying) for farmers and Hi-Tech programmes to ensure that the envious record of the Ghanaian cocoa industry is sustained.

Although global prices of cocoa has been unstable over the past four years, the producer price of the crop in the country has been consistently, a move government said is in line with his desire to fairly reward cocoa farmers in the country.

In the 2007 / 2008 cocoa season, the producer price of cocoa was GH¢75 per bag of 64 kilogramme. This was increased to GH¢102 per bag in 2008 / 09. In 2010/11, the producer price was increased from GH¢102 per bag of 64 kg to GH¢200 per bag of 64kg.

However, by 2011 / 2012 the price per bag had risen to GH¢205, representing over a 100 per cent increase in three years.

Also, during the 2008/09 crop year, government set up a Stabilisation Fund with annual contributions from the FOB price as a risk mitigating mechanism against a fall in international cocoa prices.

The primary objective of the fund was to apply it to sustain the earnings of cocoa farmers in challenging times like it is being witnessed during this 2012 /13 cocoa season. Meanwhile, Dr Duffuor said the Stabilisation Fund (SF) has been applied accordingly.

Other rates and fees for stakeholders in the cocoa sector include the buyers’ margin, haulers’ rate, warehousing and internal marketing costs as well as fees for disinfestations, grading and sealing.

The margins rates and charges were maintained at least year’s levels as a demonstration of the commitment of other key stakeholders towards sustainable cocoa industry.

The President of the Ghana Cocoa, Coffee and Sheanut Farmers Association, Alhaji Alhassan Bukari, told the Daily Graphic, shortly after the increment that farmers were happy about the increment, which for them was a pleasant surprise.

According to him, the trend has always been a reduction in their prices, hence a decision to increase the local prices in spite of reducing world market prices was a laudable initiative by government.

“We thank the government for his efforts in the cocoa sector,” Alhaji Bukari said.

He, however, advised cocoa farmers along the Cote d’Ivoire border “not to allow the farmers from the country to bring their cocoa here with their bad prices to come and spoil our quality cocoa.”

Finding success through determination

She resolved to work on her own and overcame obstacles to get to where she is. At the 22nd National Awards for Export Achievement 2011, held recently in Accra, her company “Ebenut Ghana” was given a special honourary award. Ama Amankwah Baafi had a chat with her and reports

When she returned to Ghana in 1998 with her family from the United Kingdom (UK), Mrs Paully Apea-Kubi had a dream to work on her own. Then, one of her aims was to have a flexible work schedule to be able care for her family, especially when her younger child was just four years.

Upon a visit to a friend at Dodowa in the Dangme West district of the Greater Accra Region she realised that mangoes were in season (June / July) but there seem to be no buyers. “In fact I saw one pregnant woman seated behind a heap of mangoes and until three o’clock in the afternoon no one asked how much they were selling, except some school children who tried to take some and she chased them about.”

She told the GRAPHIC BUSINESS that she conceived the idea to do something about it. It was not until June 26, 1998, that a friend requested her to prepare a birthday cake with coconut flavor. After grating the coconut she dried in her oven and realised it had dried so beautifully white and crispy. She took the quantity needed but was left with more.



Her alliance with GEPA

She took the rest to the office of the Ghana Export Promotion Authority (GEPA) to find out if she can be assisted. She was received warmly and was told there was market for it in the United Kingdom but it would take some time because it had to be developed.

“In fact GEPA was the first institution that helped me do a business plan which by then was expensive. But their effort to help me get funds to start was not fruitful.”

She took the initiative to research on line for market. Eventually, she chanced upon the Danish International Development Agency (DANIDA), the official development cooperation agency of the Government of Denmark which gave her GH₵400 equivalent then, and that was how “Ebenut Ghana” started.



Ebenut Ghana

The factory at its current site, Ghana Industrial Commercial Estate (GICEL) at Weija in the Ga West District began with a worker and just one mini drier, developed through the assistance of the Food Research Institute (FRI).

She doubled as the producer, distributor and sales person. Later, Ebenut signed contracts with ten confectionary companies. From an initial capacity of 25 kilogrammes (Kg) in a month, production shot up to half a tonne (500 kg).



Impact of Chinese imports

By 2002, Ebenut was producing two tonnes a month and so bought a big drier as well as increased its staff to 12. It was expanding until 2004 when these Chinese imports begun coming in and the women who hitherto kept vigil at confectionary companies for confections started going to china to bring in such products.

Consequently, she decided to diversify by drying pineapple, mangoes, banana and pawpaw. During that time the German Technical Cooperation (GTZ) had been contracted by government to assist the sector so they helped look for market for my products. In 2007, through GTZ, Ebenut participated in fruit and logistics fair in Germany, where she had three customers from Italy, Switzerland and Germany who expressed interest in her work. Upon return, she began exporting.

Ebenut also dries vegetables like kontonmire, tomatoes, garden eggs, buma (green leafy vegetable and okra.

“We try to dry most of the things that are seasonal because we know that most our foods are very seasonal. We sell our goods at Koala, Shoprite and other notable supermarkets. All these foods if we had money to promote them will do well in the local market also.



At the factory / production

The raw materials, fruits and vegetables are weighed, sent to fresh fruit room, stuck them in plastic baskets and processors begin their work. After peeling the fruits spread and put in the drier. It important to note that here record taking is done seriously, including even the peeling.

After drying throughout the night, the products are put in containers, sorted out and packaged to customer preference.

Ebenut adhere to the Hazard Analysis and Critical Control Point (HACCP) standard, recognized as an international food safety program.

It works with 10 mango farmers in Dodowa and Akosombo, 10 pineapple (MD2) farmers in Bawjiase, 10 coconut farmers and 45 sugar loaf farmers in Ekumfi. The farmers are being assisted by the GTZ to certify them in organic and fair trade value chains that link producers, processors, traders, retailers and service providers from field to the consumer, in a way that all involved stakeholders benefit.



Her motivation

She has a passion for what she does. “I have a lot of ideas as to how to preserve our local meals and we have done a lot of research on that. I love my country but first of all as an entrepreneur I get my money, employ people, market Ghana and put it on the world map. I want to preserve what we call waste here and add value to it for export.” She tries to attend most exhibitions.



Major achievements

She received a special honourary award at the 22nd National Awards for Export Achievements 2011 held recently. In 2009, she was among 10 women in Africa selected for the United Nations Conference on Trade and Development (UNCTAD’s) second Empretec Women in Business Awards.

Again in 2006, at a fair in Senegal, Ebenut Ghana won the Best Packaged Product in West Africa. She has since been made the coordinator and occasionally entrepreneurs visit her factory for inspiration.

Funding is however a major challenge to expanding her business. She is sometimes compelled to depend on clients to pre-finance which she said is not helpful.



Future of Ebenut

The company has acquired a new site at Bawjiase seeking for financial breakthrough to develop into a modern factory. “We are looking for a good partner. If we move there we will be producing 15 tonnes monthly and which means workers are going to double.”

Meanwhile, Ebenut in collaboration with FRI and USAID’s West Africa Trade Hub have worked on the development of jollof rice and gari futo but need money to implement.

Ebenut normally takes on Senior High School graduates who stay on me for about two years to be able to save some money and then go back to school.

At the moment, two of such people are pursuing programmes in agri-business and administration at the University College of Winneba, University of Ghana, Legon and University of Development Studies and hope to return to the company.

It offers in-service HACCP training for those in the food industry. She is also a guest lecturer at the Food Processing Department of the University of Ghana. Students also get the chance to do practical internship at Ebenut.



Lessons learnt

She said most Ghanaian foods can be packaged and exported if we go by the standards; that is food safety aspects. Consumers in Europe are waiting to taste exotic food. She suggested the Ministry of Food and Agriculture can nurture people interested in the processing sector and assist them to achieve their dreams.

She appealed to government to institute an incubation fund to help potential entrepreneurs to turn their ventures into serious moneymakers. She added private-owned businesses may represent a big source of potential growth for the Ghanaian economy.



Her advice to women entrepreneurs or potential entrepreneurs

She said food processing has been in the country for some time; processing of koobi (salted fish) and other things but there have been new developments and new technologies.

Therefore, Ghana needs a lot of people to come into the industry which though capital intensive is lucrative. Yet, the person should have the flair for it because it is demanding.



Education background

She obtained secondary education at Oda Senior High School, proceeded to Accra Polytechnic to read a Catering and Institutional Management and then to Thomas Denby in Leeds, United Kingdom where she studied Hospitality.

She also has a certificate in Financial Management from Benchmark Capital Group.



Hobby

When she is not at the factory processing fruits and vegetables she exercises at the gym and likes to walk a lot. She is married with three children and loves spending time with them by visiting places of interest.

Ghana showcases products in Liberia

OVER 40 Ghanaian companies with a wide range of products are exhibiting their wares at a fair exclusively organised for Ghanaian products in Monrovia, Liberia.

The Ghana Export Promotion Authority (GEPA), in collaboration with the Association of Ghanaian Industries (AGI) and the Ghana Embassy in Liberia, organised the solo-exhibition, which is on the theme: “Deepening Ghana-Liberia Relations through Trade.”

The one-week exhibition which will end on October 31, 2012 is to enable manufacturers and artists from Ghana showcase a variety of products, including pharmaceuticals, household disinfectants, detergents, herbal products, shea butter, soaps, textiles and garments, woodcraft, straw baskets and beaded items to the market in Liberia.

Other products are footwear, cosmetics, hair products, plastic packaging, lubricating oils, animal health products, aluminiums cook wear as well as roofing sheets.

The Acting Chief Executive Officer of the GEPA, Mr Stephen Normeshie, said the exhibition was a follow-up to a series of Ghana trade and investment missions that had been held in Monrovia in the recent past.

He said Ghana considered Liberia a strategic trading partner with whom not much had been achieved so far. As a result, Mr Normeshie said it was GEPA’s desire to intensify trade between the two countries as well as other ECOWAS member states.

The exhibition also seeks to increase trade relations between the two countries and offer businesses, particularly the small and medium scale enterprises, the opportunity to strike inter-country partnerships for growth.

“Ghana is interested in the stability and economic growth of Liberia. We believe that events such as this exhibition will enable the private sectors of our two countries to get closer. It is also intended to showcase the products and services that Ghana has to offer Liberia to cement our bilateral trade,” the acting GEPA chief executive said.

Mr Normeshie emphasised that Ghanaian enterprises were currently not in Liberia to compete with those in Liberia but to seek partnerships and joint ventures that will draw the two countries together.

Ghana’s Ambassador to Liberia, Mr Kenneth Asare Bosompem, said the global economic crisis and its effects such as the decline in remittances and aid had necessitated the sub-region to come up with initiatives for its economic growth.

He said there was the need to integrate economies to be able to minimise the negative impacts.

“Although a number of countries in the region are emerging out of conflict, these are characterised by unbroken peace and stability. It is, therefore, incumbent on us to collaborate effectively to ensure that this exhibition is a modest step in this direction,” Mr Bosompem stated.

The Vice President of the AGI, Mr Samuel Agyapong Appenteng, called on governments in the sub-region to give the private sector the necessary support by addressing the challenges facing them and creating an environment conducive for businesses to thrive and expand beyond borders.

“The number of road blocks, the uncooperative attitude of some custom officials, and corruption at our border posts, among others, are the problems facing the development of West African trade,” he added.

Ghana showcases products in Liberia

OVER 40 Ghanaian companies with a wide range of products are exhibiting their wares at a fair exclusively organised for Ghanaian products in Monrovia, Liberia.

The Ghana Export Promotion Authority (GEPA), in collaboration with the Association of Ghanaian Industries (AGI) and the Ghana Embassy in Liberia, organised the solo-exhibition, which is on the theme: “Deepening Ghana-Liberia Relations through Trade.”

The one-week exhibition which will end on October 31, 2012 is to enable manufacturers and artists from Ghana showcase a variety of products, including pharmaceuticals, household disinfectants, detergents, herbal products, shea butter, soaps, textiles and garments, woodcraft, straw baskets and beaded items to the market in Liberia.

Other products are footwear, cosmetics, hair products, plastic packaging, lubricating oils, animal health products, aluminiums cook wear as well as roofing sheets.

The Acting Chief Executive Officer of the GEPA, Mr Stephen Normeshie, said the exhibition was a follow-up to a series of Ghana trade and investment missions that had been held in Monrovia in the recent past.

He said Ghana considered Liberia a strategic trading partner with whom not much had been achieved so far. As a result, Mr Normeshie said it was GEPA’s desire to intensify trade between the two countries as well as other ECOWAS member states.

The exhibition also seeks to increase trade relations between the two countries and offer businesses, particularly the small and medium scale enterprises, the opportunity to strike inter-country partnerships for growth.

“Ghana is interested in the stability and economic growth of Liberia. We believe that events such as this exhibition will enable the private sectors of our two countries to get closer. It is also intended to showcase the products and services that Ghana has to offer Liberia to cement our bilateral trade,” the acting GEPA chief executive said.

Mr Normeshie emphasised that Ghanaian enterprises were currently not in Liberia to compete with those in Liberia but to seek partnerships and joint ventures that will draw the two countries together.

Ghana’s Ambassador to Liberia, Mr Kenneth Asare Bosompem, said the global economic crisis and its effects such as the decline in remittances and aid had necessitated the sub-region to come up with initiatives for its economic growth.

He said there was the need to integrate economies to be able to minimise the negative impacts.

“Although a number of countries in the region are emerging out of conflict, these are characterised by unbroken peace and stability. It is, therefore, incumbent on us to collaborate effectively to ensure that this exhibition is a modest step in this direction,” Mr Bosompem stated.

The Vice President of the AGI, Mr Samuel Agyapong Appenteng, called on governments in the sub-region to give the private sector the necessary support by addressing the challenges facing them and creating an environment conducive for businesses to thrive and expand beyond borders.

“The number of road blocks, the uncooperative attitude of some custom officials, and corruption at our border posts, among others, are the problems facing the development of West African trade,” he added.

Export Authority promotes services sector

The Ghana Export Promotion Authority (GEPA) is to market key professional institutions in the country to the outside world as part of efforts aimed at generating more revenues from non-traditional exports (NTEs) and the services sector in particular.


The idea is to help attract patronage from foreigners for services such as financial and the business processing and outsourcing (BPO), medical tourism, consultancy and education being run in the country.

The Acting Chief Executive Officer of the GEPA, Mr Stephen Normeshie, who disclosed this to the Daily Graphic in Lagos, Nigeria, added that the authority was mainstreaming professional services exports into the existing 400 NTEs portfolios.

He spoke to the paper on the sidelines of the international trade fair which ended in Lagos, Nigeria.

The fair brought together over 40 businesses from Ghana to showcase their products and services to the Nigerian market.

“Ghana’s educational system is considered one of the best within the sub-region and has become gravitating points for students from many countries. The medical centres of excellence have also been categorised as some of the best, including the Cardio and Reconstructive Plastic Surgery units (in Accra and Kumasi) and the forensic (genetic) laboratory in addition to existing centres of excellence,” the GEPA Acting CEO said.

The export authority which is mandated to promote exports has over the years contributed to the growth of the export sector through the promotion of four main cardinal areas, which cover all non-traditional products. The strategic areas are manufactured products, agribusiness, home décor/handicrafts and professional services.

The professional services have, however, received less attention despite the immerse contributions the services sector brings the country’s Gross Domestic Product (GDP).

“We have identified professional services as one with lot of export potential,” Mr Normeshie said.

He said the authority had made conscious efforts to promote the services export sector, especially in the tourism, financial and the business processing and outsourcing (BPO), medical tourism, consultancy and educational sectors.

At the fair, which ended on Saturday, Africa Eco Tour, a professional organisation with diverse interests in tourism and education, provided the platform for several education institutions and students in Ghana to exchange ideas on matters of mutual consent.

A representative of the organisation, Mr Clifford Selasie, said his organisation received good responses. “Before we participate in fairs, we try to get on board schools that are interested in recruiting students from the sub-region. In Lagos, it is a big market so we decided to take advantage of it and we made an impact. We advertised on the national television and distributed brochures. Indeed, we had lot of good response,” he said.

The Forestry Commission also participated in the fair. The Grading and Inspection Manager of the commission, Mr Baba Ibrahim Ahmed, said Nigeria was the biggest importer of timber products in Ghana, importing about 56 per cent value of Ghana’s product, “thus the decision to be present at the fair to protect our market share.”

He said plans were underway to set up an office in Lagos so the commission could compete favourably.

Ghanaian businesses invade Nigeria

ABOUT 45 Ghanaian businesses and entrepreneurs are participating in the annual Lagos International Trade Fair currently underway in the Nigerian Capital, Lagos.

The fair, which is on the theme ‘Promoting Trade for Sustainable Economic Transformation’ started on November 2 and will end on Sunday, November 11.

Local businesses in the services, export sector, especially those in medical tourism and education are represented at the fair. Other products showcased include pharmaceuticals, household disinfectants, detergents, herbal products, shea butter and soap.

Businesses in the production and sale of textiles and garments,handicraft, beaded items, footwear, hair products and aluminium cook ware were also present at the Lagos International Trade Fair, one of three exhibition platforms on which Ghanaian businesses use to market their products to the Nigerian people.

The others are the Abuja and Lagos International Trade Fairs and the Arts and Crafts Fair.

The fairs are the initiatives of the Ghana Export Promotion Authority (GEPA), the Ghana Investment Promotion Centre (GIPC), and their counterparts in Nigeria as well as the Ghanaian Embassy in Nigeria.

Some exhibitors told the Daily Graphic that the fair continues to provide the platform for them to showcase their products and to seek business partnerships in Nigerian market. The Nigerian market is considered the largest and most strategic one in the West African sub-region given the population of the country.

A ‘Ghana Day’ on business and investment forum was held at the sidelines at the fair to expose Nigerian investors and businesses to the various business opportunities they could take advantage of.

Participants in the forum included some members of the Lagos Chamber of Commerce and Industry and representatives from the Nigeria Ministry of Trade. It was on the theme ‘Promoting Ghana-Nigeria Trade Fair for Sustainable Economic Development.’

Ghana’s High Commissioner to Nigeria, Alhaji Baba Kamara, said although the economies of the two countries had been growing in the last two decades, the growth had not translated into the economic development required to lift citizens from poverty.

That, he said, was because the “growth in our gross domestic product (GDP) was largely attributed to the growth in the oil and gas sector and other extractive industries. Therefore, for the needed economic development and transformation, we need to create the enabling environment that will see government and the private sector invest in the productive sectors of the economy where quality goods and services will be produced at competitive prices for domestic consumption and export,” he added.

He bemoaned the little economic successs chalked by the ECOWAS Trade Liberalisation Scheme (ETLS), nearly 20 years into its establishment.

“Little has been achieved by way of significant increase in trade among member states. While trade among European Union members stand at 60 per cent, that among ECOWAS members is below 10 per cent due to challenges such as exorbitant transit fees and extortion at the numerous check points in the various countries,” Alhaji Kamara said in a speech read on his behalf by the Ghana Consul General in Lagos, Alhaji Abdulai Abubakhar.

The Acting Chief Executive Officer of the GEPA, Mr Stephen Normeshie, said Ghanaian businesses were not only seeking to market their quality products in the Nigerian market, but were also looking for genuine business partners.

“Since trade is reciprocal, we have also been encouraging our companies to consider investing in the non-oil, non-traditional export sectors (NTEs) of Nigeria. We are much aware that opportunities in these sectors are huge and so it will take the goodwill, determination and transparency by the private sectors of both countries to exploit for our mutual benefits and in fulfillment of our sub-regional integration agenda,” he added.