By Fred SARPONG
The National Insurance Commission (NIC), the regulator of the insurance industry, intends to put on hold the issuing of any additional license to prospective insurance investors, as it prepares to map out strategies to strengthen the industry.
In an interview with Isaac Yaw Buabeng in Accra, Head of Marketing, Research and External Relation at the NIC, he indicated that the decision taken by the commission is to make the industry a viable sector for both investors and beneficiaries.
Even though the commission has received some applications from prospective investors, Buabeng said the applications are being put on hold until the commission realizes that the sector is ready for more insurance companies.
As to whether the commission is okay with the minimum stated capital of US$1 million for the companies, Buabeng said that Ghana’s insurance industry is too young to witness such an increase as compared to the Nigeria insurance industry which stated minimum capital stands at US$15 million.
But he quickly added that the commission is asking all the existing insurance companies which want to enter into the oil and gas business should increase their minimum stated capital from the usual US$1 million to US$5 million. “This is because the oil and gas industry business involves a lot of risk,” said Buabeng.
The insurance industry in Ghana has positioned itself to write the oil and gas business. The industry has formed a consortium so that the business is written on co-insurance basis.
The insurance companies will participate in the business according to the strength of their balance sheet. This is done so that the companies can match the liabilities with their assets.
At the end of the day a greater percentage of the business will go into reinsurance until the companies build the required capacity.
After the shares by the Consortium of Insurance Companies, the excess will be reinsured with reinsurance companies on the international market.
A typical package policy is said to be structured with several sections and could be placed as a policy for one unit for one drilling contract or more typically an annual policy for the assured fleet.
A significant proportion of underwriting capacity is also available from the oil companies themselves through the participation of their captive insurance companies. As the oil company grows, building up its market capitalization and developing a spread of assets in different geographical areas, it is able to retain more of its own risks. It is usual for an oil company to self-insure this risk through the establishment of a captive insurance company.
The captive will generally be located in a country where it can be administered in a tax-efficient manner and will be responsible for accepting premiums for the share of risk written by the captive and paying claims there on.
Nowadays captives owned by large multinational companies in the oil sector or otherwise are sophisticated organizations and may participate in various levels of its parent’s programme and may have its own reinsurance network.
Tuesday, September 29, 2009
Friday, September 25, 2009
August PPI drop to 14.72%
By Fred Sarpong
Figures available from Ghana Statistical Service (GSS) indicate that ex-factory price of goods measure by the Producer Price Index (PPI) for August 2009 dropped by 1.41% to 14.72% from the July figure of 16.13%.
This implies that the ex-factory prices for all industry, which include manufacturing, mining and quarrying and utilities sub-sectors were on average l4.72% lower in August 2009 than they were in August 2008.
The rates of producer price inflation for these sub-sectors were mining and quarrying, 50.07%; manufacturing, 10.77%; and utilities, 1.49%.
The rate of producer price inflation in August 2009 increase for mining and quarrying by 8.42 percentage points, while manufacturing and utilities went down by 3.6 and 0.29 percentage points respectively than that of July 2009.
The monthly change in the all industry for August PPI was 0.71%. The corresponding changes for the major sub-sectors were: mining and quarrying, 0.51%; manufacturing, 0.84%; and utilities, -0.05%.
In the manufacturing sector, there was an appreciable inflation rates in the manufacture of tanning and dressing of leather (56.19%) sub-groups, while manufacture of cokes, refined petroleum products and nuclear fuel recorded a negative inflation rate of 7.17%.
The all industry year-on-year inflation had been relatively stable for the first five months of 2009, averaging 13.40%. There was however an upsurge in the rate in June, recording 17.94%, the highest for the year before reducing to 14.72% in August 2009.
Mining and quarrying rate sub-sector has exhibited the highest inflation rate since January 2009, followed by manufacturing and utilities sub-sectors.
Figures available from Ghana Statistical Service (GSS) indicate that ex-factory price of goods measure by the Producer Price Index (PPI) for August 2009 dropped by 1.41% to 14.72% from the July figure of 16.13%.
This implies that the ex-factory prices for all industry, which include manufacturing, mining and quarrying and utilities sub-sectors were on average l4.72% lower in August 2009 than they were in August 2008.
The rates of producer price inflation for these sub-sectors were mining and quarrying, 50.07%; manufacturing, 10.77%; and utilities, 1.49%.
The rate of producer price inflation in August 2009 increase for mining and quarrying by 8.42 percentage points, while manufacturing and utilities went down by 3.6 and 0.29 percentage points respectively than that of July 2009.
The monthly change in the all industry for August PPI was 0.71%. The corresponding changes for the major sub-sectors were: mining and quarrying, 0.51%; manufacturing, 0.84%; and utilities, -0.05%.
In the manufacturing sector, there was an appreciable inflation rates in the manufacture of tanning and dressing of leather (56.19%) sub-groups, while manufacture of cokes, refined petroleum products and nuclear fuel recorded a negative inflation rate of 7.17%.
The all industry year-on-year inflation had been relatively stable for the first five months of 2009, averaging 13.40%. There was however an upsurge in the rate in June, recording 17.94%, the highest for the year before reducing to 14.72% in August 2009.
Mining and quarrying rate sub-sector has exhibited the highest inflation rate since January 2009, followed by manufacturing and utilities sub-sectors.
NDC youths demand dismissal of GBC boss
The Youth Activist Network (YAN) of the National Democratic Congress has called for the dismissal of the Director General of the Ghana Broadcasting Corporation, William Ampem-Darko.
In a statement signed by the spokesperson of the group, Otokunor Boamah Peter, YAN expressed its displeasure at the recent failure of GTV to show a live presentation of President John Evans Atta-Mills’ speech during the 64TH Annual UN General Assembly and similar events it was supposed to air.
“The continuous inability of the nation's broadcasting corporation to stick to its intentions of broadcasting live programs is disappointing”, the statement said.
According to YAN, the state broadcaster, though under government’s subvention, continuously exhibits gross “disregard and contempt” in discharging its duties.
This, they charged, was an attempt to sabotage the government “in its bid to improve public access to information”.
Therefore, “YAN calls on the National Media Commission or the Ministry of Information to as a matter of urgency dismiss the Director General of Ghana Broadcasting Corporation, Dr. William Ampem-Darko and Mr. Moses Gyapong, the Technical Director of GTV."
The group said it would advise itself if the two are not removed from office.
By: Dorcas Efe Mensah/myjoyonline.com/Ghana
In a statement signed by the spokesperson of the group, Otokunor Boamah Peter, YAN expressed its displeasure at the recent failure of GTV to show a live presentation of President John Evans Atta-Mills’ speech during the 64TH Annual UN General Assembly and similar events it was supposed to air.
“The continuous inability of the nation's broadcasting corporation to stick to its intentions of broadcasting live programs is disappointing”, the statement said.
According to YAN, the state broadcaster, though under government’s subvention, continuously exhibits gross “disregard and contempt” in discharging its duties.
This, they charged, was an attempt to sabotage the government “in its bid to improve public access to information”.
Therefore, “YAN calls on the National Media Commission or the Ministry of Information to as a matter of urgency dismiss the Director General of Ghana Broadcasting Corporation, Dr. William Ampem-Darko and Mr. Moses Gyapong, the Technical Director of GTV."
The group said it would advise itself if the two are not removed from office.
By: Dorcas Efe Mensah/myjoyonline.com/Ghana
Thursday, September 24, 2009
Prime Rate remains 18.5%
The Monetary Policy Committee of the Bank of Ghana has decided to keep the Prime Rate at 18.5 per cent.
The decision, announced Wednesday by outgoing Governor, Dr. Paul Acquah, was influenced by a positive outlook for the economy, explaining that barring any significant shocks, pressures on the exchange market should ease considerably as the external current account deficit appears to be unwinding.
“The risks in the outlook relate to the speed with which oil prices might rebound, with recovery of global demand from the financial and economic crisis. Also, while fiscal consolidation is taking place, shortfalls in revenue and donor disbursements and payments of domestic arrears have meant that some payments in the pipeline would have to be settled that could add some stimulus to the economy. However, the risks to inflation and growth appear well balanced with policies working to strengthen the disinflation process that has begun and keep it on the path towards the inflation target of 14.5 percent for the year. In the circumstances, the Monetary Policy Committee decided to leave the prime rate unchanged at 18.5 percent,” Dr. Acquah explained at a press briefing in Accra.
Below is the full statement by the Monetary Policy Committee.
1. Ladies and Gentlemen, you are all welcome to this Monetary Policy Committee press briefing.
2. One year after the collapse of Lehman Brothers which signaled what became one of the worst global economic crisis, all the uncertainties seem to be dissipating. Initial signs on the global front point to recovery, particularly, in the US, Europe and the leading emerging market economies (China and India). Understandably, policy makers are receiving this news with some cautious optimism, warning against pre-mature withdrawal of stimulus measures which could put the recovery at risk.
3. On the domestic front, we have begun to see some signs of stabilization in the third quarter of the year, an indication that the effects of both monetary and fiscal policies are beginning to take hold. The latest surveys show more positive assessment of the general macroeconomic outlook; and a rebound in both business and consumer confidence, with some downward revision of inflation expectations.
4. Data from the Bank’s Composite Index of Economic Activity (CIEA) show a slowdown in the pace of decline in economic activity. The index which had pulled back in the first quarter, increased by 1.4 percent in the three months to July after remaining flat in the preceding quarter. But developments also show that output growth is much closer to the trend rate of some 6 percent, down from 7.3 percent in 2008.
5. Other indicators such as energy supplied by the VRA over the first seven (7) months of the year increased by 10.5 percent to 5.25 million mwh. Supply to the mines and industry (excluding VALCO) over the same period also has seen an upward trend. Benchmark retail sales similarly showed an increase of 10.3 percent over same period of 2008.
6. Headline inflation which was 20.7 percent in June 2009 declined to 20.5 percent in July 2009 and then further to 19.7 percent by the end of August 2009. The decline in inflation was from both food and non-food sources with the non-food exerting a stronger downward force than food inflation, an indication that the impact of the 30 percent rise in petroleum prices in May has fully been contained. The monthly price increases were the lowest of non-food inflation in recent years, and the decline in the food index was also among the steepest.
7. The Bank’s measure of core inflation (defined to exclude energy and utility) began to decline in August by 0.8 percentage points after increasing steadily in the year to July 2009.
8. Provisional data available at the end of July 2009 show a slowdown in the pace of expansion of the key monetary aggregates. Broad money (M2+) grew by 34.9 percent principally due to an increase in foreign currency deposits. This represented a slowdown from 39.7 percent for July 2008.
9. Foreign currency deposits grew by 70.8 percent in year on year terms at the end of July 2009, but up from 49.8 per cent recorded for July 2008. Foreign currency deposits which amounted to GH¢1,816.8 million in December 2008 increased to GH¢ 2,490.2 million in July 2009, compared with GH¢1,458.1 million for July 2008.
10. The latest credit conditions survey by the Bank of Ghana showed a continued general tightening of credit to both households and enterprises and reduced net demand for credit through the third quarter of the year. Non-price terms and conditions such as shortening of the maturity of loans or credit lines, and the requirement of additional loan covenants and collaterals were employed to tighten credit stance in the third quarter of 2009.
11. Provisional estimates of DMBs credit to the private sector and public institutions show deceleration in credit growth. For the 12-month period to July 2009 credit to both private sector and public institutions increased by GH¢1,659.7 million (32.9 percent) compared with GH¢1,635.3 million (48.0 percent) recorded for the same period in 2008. The private sector accounted for GH¢1,447.3 million (87.2 per cent) of the credit flow.
12. Real annual growth of DMBs credit to the private sector was 11.6 percent at the end of July 2009 down from an end of 2008 level of 25.4 per cent and compares with 32.3 per cent at end-July 2008.
13. There were shifts in the distribution of credit flows during the period. The proportion of credit flow to services reduced from 35.9 percent in 2008 to 16.5 percent in July 2009; commerce and finance from 19.1 percent in 2008 to 2.8 percent in July 2009. On the other hand, manufacturing’s share increased from 10.3 percent in 2008 to 15.1 percent in July 2009; electricity and gas from 3.2 percent to 12.8 percent; transport and communication 2.2 percent to 8.4 percent. All other sectors also gained in shares.
14. The banking sector continues to expand as the overall balance sheet registered an annual growth of 31.9 percent at the end of July 2009 compared with 30.7 percent recorded during the same period in 2008. Paid up capital rose from GH¢350.5 million to GH¢627.1 million in July 2009. Total deposits constituted 73.9 percent of the annual flow of funds, while total borrowings also constituted 9.7 percent (a slowdown in growth from 11.8 percent recorded a year ago).
15. Banks external borrowings, as a source of funding continues to be less than 5 percent of their total funding requirements. This confirms that the banks’ less reliance on external borrowings as a source of funding.
16. The ratio of non-performing loans to total loans increased to 11.4 percent in July 2009 from 7.9 percent for the same period in 2008. The industry’s capital adequacy ratio as measured by the ratio of regulatory capital to risk-weighted assets edged up marginally to 14.7 percent, from 14.3 percent in the corresponding period in 2008.
17. Preliminary banking data on the execution of the Government budget for the year up to August 2009 shows a significant reduction in the deficit on a cash basis relative to GDP
18. Total expenditure (excluding foreign financed capital expenditure) at the end of August was GH¢4,439.94 million (20.5 percent of GDP) compared with GH¢4,300.31 million (26.4 percent of GDP) for the same period in 2008. This represents a year-on-year growth of 3.25 percent compared with 41.6 for the same period in 2008. Some GH¢250 million of this spending represent payments for 2008 in arrears.
* Total revenue and grants at the end of August 2009 was GH¢3,703.80 million (17.1 percent of GDP) compared with GH¢3,021.24 million (18.5 percent of GDP) for 2008. In year-on-year terms, total revenue and grants increased by 22.6 percent, compared with 9.7 per cent recorded in 2008.
* Grants for the period amounted to GH¢426.00 million (1.97 percent of GDP) compared with GH¢405.19 million (2.49 percent of GDP) for the same period in 2008.
19. While revenue growth was somewhat robust, the collections represented 78.6 percent of the projection for end September. Donor disbursement for the period was also about 50 percent of projection, leading to a shortfall in projected budget resource envelop. Partly because of this shortfall, there are some outstanding payments including statutory payments to DACF and GETFUND that would need to be settled later in the year.
20. The overall budget operations for the first eight months of the year resulted in a narrow cash deficit (including grants) of GH¢901.55 million (4.17 percent of GDP) compared with GH¢1,433.99 million (8.8 percent of GDP) for the same period in 2008. The deficit was financed mostly on the domestic money market.
21. The stock of domestic debt which was GH¢4,800.2 million (27.2 percent of GDP) at the end of 2008, increased to GH¢5,489.66 million (25.4 percent of GDP) at the end of July 2009. External debt also increased from US$3,9826 million (28.1 percent of GDP) at the end of December 2008 to US$4,470.2 million (30.2 percent of GDP), bringing total public debt stock to US$8,120.04 million (54.9 percent of GDP) at the end of July 2009, up from US$7,918.1 million (54.6 percent of GDP) at the end of December 2008.
22. Interest rates remained broadly stable in the third quarter.
* The benchmark 91-day Treasury bill rate firmed up marginally by 5bps to 25.89 percent at the end of August compared with an increase of 35bps in June.
* The 182 day treasury rate similarly edged-up by 3bps over the same period to 28.85 percent compared with an increase of 103bps in June.
* The 1-year-note rate was unchanged at 21.0 percent in August 2009 after gaining 100bps in March 2009. The 2-year fixed rate note however moved to 25.50 percent in August from 21.0 percent in June 2009.
* The interbank rate edged up by 18bps to 22.72 percent between June and August 2009 compared with an increase of 105bps in June.
23. Average base rate quotations of the banks were revised marginally upward by 37bps between June and August to the range 25.75 percent – 32.0 percent, compared with 160bps increase in the second quarter and 170 bps in the first quarter. Average lending rates remained unchanged at the second quarter level of 32.75 percent and were in the range 25.75 – 40.0 percent
24. The external payments position shows significant adjustment with sharp reduction in the trade and the current account deficits.
25. Total merchandise exports during the first half of 2009 was US$3,056.27 million, compared with US$2,845.83 million for the same period in 2008. Exports of cocoa beans and products grew by 17 percent in year on year terms amounting to US$1,064.8 million for the six month to June, compared with 22.6 percent growth in 2008.
26. Total merchandise imports amounted to US$4,010.67 million in the first half of the year, compared with US$5,000.85 million for 2008 (a decline of 19.8 percent).
* Non-oil import for the period was US$3,429.12 million compared with US$3,674.39 million in 2008.
* Oil imports for the period was US$581.55 million as against US$1,326.46 million for 2008. The significant drop in the oil bill has been driven by lower crude oil imports mainly as a result of shifts in the hydro/thermal mix to 75.8 percent hydro as at July 2009 compared with 52 percent in July 2007; and lower prices for higher product imports.
27. The merchandise trade deficit for the first half of the year narrowed to US$954.4 million in June 2009, compared with US$2,155.02 million for the same period in 2008, with sharp cut in the oil import bill, while exports held firm.
28. The current account (including official transfers) for the first half of the year is provisionally estimated to be in a deficit of US$299.06 million, an improvement of US$1,160.53 million over the deficit recorded for the same period last year.
29. The capital and financial account for the period up to June 2009 however, moved from a surplus of US$845.0 million over the half year of 2008 to a deficit of US$48.84 million in 2009. This was driven mainly by higher amortization of private sector loans and external trade credit, and some redemption of government securities in the midst of the global financial crisis.
30. The consequence was that overall balance of payments deficit reduced to US$625.98 million, as against a deficit of US$782.67 million in 2008.
31. Latest data on trade suggest that exports have increased to US$3,829.13 million at the end of August, and imports to US$5,268.58 million. The trade deficit rose from US$954.4 million as at June to US$1,439.45 million at the end of August 2009.
* Exports of cocoa beans and products for the year to August amounted to US$1,023.85 million (an annual growth of 7.4 percent) compared with US$953.06 million for the same period in 2008 (annual growth of 21.3 percent). Cumulative cocoa purchases in the first eight weeks of Ghana’s Light Crop season (which started on 16 July) of the 2008/09 Crop Year came to 44,930 tonnes (as at 03 September) compared with 16,826 tonnes over the first eight weeks in the light season of the previous crop year.
* Gold export for the period amounted to US$1,624.99 million compared with US$1,601.37 million over the corresponding period of 2008, an annual growth of 1.5 percent, a net effect of both increases in volume and some declines in prices.
* Non-traditional exports on the other hand amounted to US$729.14 million, compared with US$613.64 million for the same period in 2008, representing an annual growth of 18.8 percent.
32. Non-oil imports at the end of August stood at US$4,582.35 million, a decline of 10.5 percent from the US$5,121.55 million for the same period in 2008. This is compared to a growth of 37.3 percent recorded during the same period last year.
* Oil import bill at the end of August increased to US$826.20 million, but compares with US$1,782.77 million for the same period of 2008, a significant annual decline of 53.7 percent.
* Capital and intermediate goods together accounted for 68.7 percent of total imports, down from 69.3 percent for the same period a year earlier.
33. The foreign exchange market showed a reduction in volume of activity. Total purchases and sales in the foreign exchange market by banks and forex bureaux during the period to August 2009 amounted to US$3,903.58 million, a 21.1 percent decline from purchases and sales over the corresponding period in 2008. Foreign exchange purchases amounted to US$1,534.06 million while sales was US$2,369.52 million, resulting in a net sale of US$835.46 million.
34. Private inward transfers – received by NGOs, embassies, service providers, individuals etc. - through the banks in the January – August period of 2009 amounted to US$5.8 billion, which represents 2.9 percent increase over those for the same period in 2008, which had risen by 32.0 percent over the first eight months of 2007.
* Of the total inward transfers in January – August 2009, US$1,003.66 million (or 17.3 percent) accrued to individuals, compared with 19.7 percent in the corresponding period of 2008.
35. Gross international reserves position at the end of August 2009 was US$1,772.14 million. This compares with US$2,036.22 million in December 2008 and US$2,497.28 million in August 2008; and represents 1.7 months cover of imports of goods and services. As at September 18, 2009, Gross international reserves was at US$2,270.21, including new SDR allocations, and represents 2.2 months cover of imports of goods and services.
36. The volatility in the exchange market eased in the third quarter. Developments in the exchange rates of the cedi against the three core currencies – the US dollar, the pound sterling and the euro – show that between January and August 2009, the cedi depreciated, cumulatively, by 16.7 percent against the dollar, 24.7 percent against the Pound Sterling, and 17.5 percent against the Euro. In year-on-year terms, the comparative depreciations were 12.9, 5.4 and 12.5 percents respectively. The depreciation however, slowed down after the first half of the year and the cedi actually appreciated by 1.7 and 0.5 percent against the US dollar and the pound sterling respectively in August. The result was a cumulative real effective depreciation of 8.1 percent in trade-weighted terms compared with 1.8 percent depreciation over the January – August period in 2008.
37. In sum, there are signs of stabilization in prices and in the exchange market. Inflation expectations are beginning to turn around. Consumer price inflation as well as core inflation remain high around 20 percent, but the recent monthly increases have been modest and there are signs of reduced volatility in prices and in the exchange rate of the cedi against the major currencies.
38. Fiscal policy and a tightening of monetary and credit conditions are putting downward pressure on prices as growth eases downward close to trend.
39. The external payments position has benefited from the continuing terms of trade gains, a reduction in energy bill arising from structural shifts in the generation mix of energy, along with lower oil prices. And the external current account deficit seems to be unwinding, and should ease the pressures on the exchange market barring any significant shock.
40. The risks in the outlook relate to the speed with which oil prices might rebound, with recovery of global demand from the financial and economic crisis. Also, while fiscal consolidation is taking place, shortfalls in revenue and donor disbursements and payments of domestic arrears have meant that some payments in the pipeline would have to be settled that could add some stimulus to the economy.
41. However, the risks to inflation and growth appear well balanced with policies working to strengthen the disinflation process that has begun and keep it on the path towards the inflation target of 14.5 percent for the year.
42. In the circumstances, the Monetary Policy Committee decided to leave the prime rate unchanged at 18.5 percent.
Thank you all for your attention.
The decision, announced Wednesday by outgoing Governor, Dr. Paul Acquah, was influenced by a positive outlook for the economy, explaining that barring any significant shocks, pressures on the exchange market should ease considerably as the external current account deficit appears to be unwinding.
“The risks in the outlook relate to the speed with which oil prices might rebound, with recovery of global demand from the financial and economic crisis. Also, while fiscal consolidation is taking place, shortfalls in revenue and donor disbursements and payments of domestic arrears have meant that some payments in the pipeline would have to be settled that could add some stimulus to the economy. However, the risks to inflation and growth appear well balanced with policies working to strengthen the disinflation process that has begun and keep it on the path towards the inflation target of 14.5 percent for the year. In the circumstances, the Monetary Policy Committee decided to leave the prime rate unchanged at 18.5 percent,” Dr. Acquah explained at a press briefing in Accra.
Below is the full statement by the Monetary Policy Committee.
1. Ladies and Gentlemen, you are all welcome to this Monetary Policy Committee press briefing.
2. One year after the collapse of Lehman Brothers which signaled what became one of the worst global economic crisis, all the uncertainties seem to be dissipating. Initial signs on the global front point to recovery, particularly, in the US, Europe and the leading emerging market economies (China and India). Understandably, policy makers are receiving this news with some cautious optimism, warning against pre-mature withdrawal of stimulus measures which could put the recovery at risk.
3. On the domestic front, we have begun to see some signs of stabilization in the third quarter of the year, an indication that the effects of both monetary and fiscal policies are beginning to take hold. The latest surveys show more positive assessment of the general macroeconomic outlook; and a rebound in both business and consumer confidence, with some downward revision of inflation expectations.
4. Data from the Bank’s Composite Index of Economic Activity (CIEA) show a slowdown in the pace of decline in economic activity. The index which had pulled back in the first quarter, increased by 1.4 percent in the three months to July after remaining flat in the preceding quarter. But developments also show that output growth is much closer to the trend rate of some 6 percent, down from 7.3 percent in 2008.
5. Other indicators such as energy supplied by the VRA over the first seven (7) months of the year increased by 10.5 percent to 5.25 million mwh. Supply to the mines and industry (excluding VALCO) over the same period also has seen an upward trend. Benchmark retail sales similarly showed an increase of 10.3 percent over same period of 2008.
6. Headline inflation which was 20.7 percent in June 2009 declined to 20.5 percent in July 2009 and then further to 19.7 percent by the end of August 2009. The decline in inflation was from both food and non-food sources with the non-food exerting a stronger downward force than food inflation, an indication that the impact of the 30 percent rise in petroleum prices in May has fully been contained. The monthly price increases were the lowest of non-food inflation in recent years, and the decline in the food index was also among the steepest.
7. The Bank’s measure of core inflation (defined to exclude energy and utility) began to decline in August by 0.8 percentage points after increasing steadily in the year to July 2009.
8. Provisional data available at the end of July 2009 show a slowdown in the pace of expansion of the key monetary aggregates. Broad money (M2+) grew by 34.9 percent principally due to an increase in foreign currency deposits. This represented a slowdown from 39.7 percent for July 2008.
9. Foreign currency deposits grew by 70.8 percent in year on year terms at the end of July 2009, but up from 49.8 per cent recorded for July 2008. Foreign currency deposits which amounted to GH¢1,816.8 million in December 2008 increased to GH¢ 2,490.2 million in July 2009, compared with GH¢1,458.1 million for July 2008.
10. The latest credit conditions survey by the Bank of Ghana showed a continued general tightening of credit to both households and enterprises and reduced net demand for credit through the third quarter of the year. Non-price terms and conditions such as shortening of the maturity of loans or credit lines, and the requirement of additional loan covenants and collaterals were employed to tighten credit stance in the third quarter of 2009.
11. Provisional estimates of DMBs credit to the private sector and public institutions show deceleration in credit growth. For the 12-month period to July 2009 credit to both private sector and public institutions increased by GH¢1,659.7 million (32.9 percent) compared with GH¢1,635.3 million (48.0 percent) recorded for the same period in 2008. The private sector accounted for GH¢1,447.3 million (87.2 per cent) of the credit flow.
12. Real annual growth of DMBs credit to the private sector was 11.6 percent at the end of July 2009 down from an end of 2008 level of 25.4 per cent and compares with 32.3 per cent at end-July 2008.
13. There were shifts in the distribution of credit flows during the period. The proportion of credit flow to services reduced from 35.9 percent in 2008 to 16.5 percent in July 2009; commerce and finance from 19.1 percent in 2008 to 2.8 percent in July 2009. On the other hand, manufacturing’s share increased from 10.3 percent in 2008 to 15.1 percent in July 2009; electricity and gas from 3.2 percent to 12.8 percent; transport and communication 2.2 percent to 8.4 percent. All other sectors also gained in shares.
14. The banking sector continues to expand as the overall balance sheet registered an annual growth of 31.9 percent at the end of July 2009 compared with 30.7 percent recorded during the same period in 2008. Paid up capital rose from GH¢350.5 million to GH¢627.1 million in July 2009. Total deposits constituted 73.9 percent of the annual flow of funds, while total borrowings also constituted 9.7 percent (a slowdown in growth from 11.8 percent recorded a year ago).
15. Banks external borrowings, as a source of funding continues to be less than 5 percent of their total funding requirements. This confirms that the banks’ less reliance on external borrowings as a source of funding.
16. The ratio of non-performing loans to total loans increased to 11.4 percent in July 2009 from 7.9 percent for the same period in 2008. The industry’s capital adequacy ratio as measured by the ratio of regulatory capital to risk-weighted assets edged up marginally to 14.7 percent, from 14.3 percent in the corresponding period in 2008.
17. Preliminary banking data on the execution of the Government budget for the year up to August 2009 shows a significant reduction in the deficit on a cash basis relative to GDP
18. Total expenditure (excluding foreign financed capital expenditure) at the end of August was GH¢4,439.94 million (20.5 percent of GDP) compared with GH¢4,300.31 million (26.4 percent of GDP) for the same period in 2008. This represents a year-on-year growth of 3.25 percent compared with 41.6 for the same period in 2008. Some GH¢250 million of this spending represent payments for 2008 in arrears.
* Total revenue and grants at the end of August 2009 was GH¢3,703.80 million (17.1 percent of GDP) compared with GH¢3,021.24 million (18.5 percent of GDP) for 2008. In year-on-year terms, total revenue and grants increased by 22.6 percent, compared with 9.7 per cent recorded in 2008.
* Grants for the period amounted to GH¢426.00 million (1.97 percent of GDP) compared with GH¢405.19 million (2.49 percent of GDP) for the same period in 2008.
19. While revenue growth was somewhat robust, the collections represented 78.6 percent of the projection for end September. Donor disbursement for the period was also about 50 percent of projection, leading to a shortfall in projected budget resource envelop. Partly because of this shortfall, there are some outstanding payments including statutory payments to DACF and GETFUND that would need to be settled later in the year.
20. The overall budget operations for the first eight months of the year resulted in a narrow cash deficit (including grants) of GH¢901.55 million (4.17 percent of GDP) compared with GH¢1,433.99 million (8.8 percent of GDP) for the same period in 2008. The deficit was financed mostly on the domestic money market.
21. The stock of domestic debt which was GH¢4,800.2 million (27.2 percent of GDP) at the end of 2008, increased to GH¢5,489.66 million (25.4 percent of GDP) at the end of July 2009. External debt also increased from US$3,9826 million (28.1 percent of GDP) at the end of December 2008 to US$4,470.2 million (30.2 percent of GDP), bringing total public debt stock to US$8,120.04 million (54.9 percent of GDP) at the end of July 2009, up from US$7,918.1 million (54.6 percent of GDP) at the end of December 2008.
22. Interest rates remained broadly stable in the third quarter.
* The benchmark 91-day Treasury bill rate firmed up marginally by 5bps to 25.89 percent at the end of August compared with an increase of 35bps in June.
* The 182 day treasury rate similarly edged-up by 3bps over the same period to 28.85 percent compared with an increase of 103bps in June.
* The 1-year-note rate was unchanged at 21.0 percent in August 2009 after gaining 100bps in March 2009. The 2-year fixed rate note however moved to 25.50 percent in August from 21.0 percent in June 2009.
* The interbank rate edged up by 18bps to 22.72 percent between June and August 2009 compared with an increase of 105bps in June.
23. Average base rate quotations of the banks were revised marginally upward by 37bps between June and August to the range 25.75 percent – 32.0 percent, compared with 160bps increase in the second quarter and 170 bps in the first quarter. Average lending rates remained unchanged at the second quarter level of 32.75 percent and were in the range 25.75 – 40.0 percent
24. The external payments position shows significant adjustment with sharp reduction in the trade and the current account deficits.
25. Total merchandise exports during the first half of 2009 was US$3,056.27 million, compared with US$2,845.83 million for the same period in 2008. Exports of cocoa beans and products grew by 17 percent in year on year terms amounting to US$1,064.8 million for the six month to June, compared with 22.6 percent growth in 2008.
26. Total merchandise imports amounted to US$4,010.67 million in the first half of the year, compared with US$5,000.85 million for 2008 (a decline of 19.8 percent).
* Non-oil import for the period was US$3,429.12 million compared with US$3,674.39 million in 2008.
* Oil imports for the period was US$581.55 million as against US$1,326.46 million for 2008. The significant drop in the oil bill has been driven by lower crude oil imports mainly as a result of shifts in the hydro/thermal mix to 75.8 percent hydro as at July 2009 compared with 52 percent in July 2007; and lower prices for higher product imports.
27. The merchandise trade deficit for the first half of the year narrowed to US$954.4 million in June 2009, compared with US$2,155.02 million for the same period in 2008, with sharp cut in the oil import bill, while exports held firm.
28. The current account (including official transfers) for the first half of the year is provisionally estimated to be in a deficit of US$299.06 million, an improvement of US$1,160.53 million over the deficit recorded for the same period last year.
29. The capital and financial account for the period up to June 2009 however, moved from a surplus of US$845.0 million over the half year of 2008 to a deficit of US$48.84 million in 2009. This was driven mainly by higher amortization of private sector loans and external trade credit, and some redemption of government securities in the midst of the global financial crisis.
30. The consequence was that overall balance of payments deficit reduced to US$625.98 million, as against a deficit of US$782.67 million in 2008.
31. Latest data on trade suggest that exports have increased to US$3,829.13 million at the end of August, and imports to US$5,268.58 million. The trade deficit rose from US$954.4 million as at June to US$1,439.45 million at the end of August 2009.
* Exports of cocoa beans and products for the year to August amounted to US$1,023.85 million (an annual growth of 7.4 percent) compared with US$953.06 million for the same period in 2008 (annual growth of 21.3 percent). Cumulative cocoa purchases in the first eight weeks of Ghana’s Light Crop season (which started on 16 July) of the 2008/09 Crop Year came to 44,930 tonnes (as at 03 September) compared with 16,826 tonnes over the first eight weeks in the light season of the previous crop year.
* Gold export for the period amounted to US$1,624.99 million compared with US$1,601.37 million over the corresponding period of 2008, an annual growth of 1.5 percent, a net effect of both increases in volume and some declines in prices.
* Non-traditional exports on the other hand amounted to US$729.14 million, compared with US$613.64 million for the same period in 2008, representing an annual growth of 18.8 percent.
32. Non-oil imports at the end of August stood at US$4,582.35 million, a decline of 10.5 percent from the US$5,121.55 million for the same period in 2008. This is compared to a growth of 37.3 percent recorded during the same period last year.
* Oil import bill at the end of August increased to US$826.20 million, but compares with US$1,782.77 million for the same period of 2008, a significant annual decline of 53.7 percent.
* Capital and intermediate goods together accounted for 68.7 percent of total imports, down from 69.3 percent for the same period a year earlier.
33. The foreign exchange market showed a reduction in volume of activity. Total purchases and sales in the foreign exchange market by banks and forex bureaux during the period to August 2009 amounted to US$3,903.58 million, a 21.1 percent decline from purchases and sales over the corresponding period in 2008. Foreign exchange purchases amounted to US$1,534.06 million while sales was US$2,369.52 million, resulting in a net sale of US$835.46 million.
34. Private inward transfers – received by NGOs, embassies, service providers, individuals etc. - through the banks in the January – August period of 2009 amounted to US$5.8 billion, which represents 2.9 percent increase over those for the same period in 2008, which had risen by 32.0 percent over the first eight months of 2007.
* Of the total inward transfers in January – August 2009, US$1,003.66 million (or 17.3 percent) accrued to individuals, compared with 19.7 percent in the corresponding period of 2008.
35. Gross international reserves position at the end of August 2009 was US$1,772.14 million. This compares with US$2,036.22 million in December 2008 and US$2,497.28 million in August 2008; and represents 1.7 months cover of imports of goods and services. As at September 18, 2009, Gross international reserves was at US$2,270.21, including new SDR allocations, and represents 2.2 months cover of imports of goods and services.
36. The volatility in the exchange market eased in the third quarter. Developments in the exchange rates of the cedi against the three core currencies – the US dollar, the pound sterling and the euro – show that between January and August 2009, the cedi depreciated, cumulatively, by 16.7 percent against the dollar, 24.7 percent against the Pound Sterling, and 17.5 percent against the Euro. In year-on-year terms, the comparative depreciations were 12.9, 5.4 and 12.5 percents respectively. The depreciation however, slowed down after the first half of the year and the cedi actually appreciated by 1.7 and 0.5 percent against the US dollar and the pound sterling respectively in August. The result was a cumulative real effective depreciation of 8.1 percent in trade-weighted terms compared with 1.8 percent depreciation over the January – August period in 2008.
37. In sum, there are signs of stabilization in prices and in the exchange market. Inflation expectations are beginning to turn around. Consumer price inflation as well as core inflation remain high around 20 percent, but the recent monthly increases have been modest and there are signs of reduced volatility in prices and in the exchange rate of the cedi against the major currencies.
38. Fiscal policy and a tightening of monetary and credit conditions are putting downward pressure on prices as growth eases downward close to trend.
39. The external payments position has benefited from the continuing terms of trade gains, a reduction in energy bill arising from structural shifts in the generation mix of energy, along with lower oil prices. And the external current account deficit seems to be unwinding, and should ease the pressures on the exchange market barring any significant shock.
40. The risks in the outlook relate to the speed with which oil prices might rebound, with recovery of global demand from the financial and economic crisis. Also, while fiscal consolidation is taking place, shortfalls in revenue and donor disbursements and payments of domestic arrears have meant that some payments in the pipeline would have to be settled that could add some stimulus to the economy.
41. However, the risks to inflation and growth appear well balanced with policies working to strengthen the disinflation process that has begun and keep it on the path towards the inflation target of 14.5 percent for the year.
42. In the circumstances, the Monetary Policy Committee decided to leave the prime rate unchanged at 18.5 percent.
Thank you all for your attention.
Wednesday, September 23, 2009
Mixed reactions over interest rate
Source: Business Guide
With the Monetary Policy Committee (MPC) of the Bank of Ghana (BoG) set to announce developments in the economy during the last three months and also make projections for the next quarter this week, economic analysts have expressed varied opinions regarding the maintenance or change in the Prime Rate- the rate at which the Central Bank does its lending to universal banks.
The benchmark indicator of the Central Bank would be the major issue that most analysts, market watchers and private sector players would be keen in monitoring.
In Ghana, the difference between deposit interest rates and lending rates are so wide that anytime interest rates rise, the banks tend to benefit while consumers suffer.
While Nana Amoto Mensah, an economic analyst with Ecobank Development Corporation (EDC) expects the current prime rate of 18.5 percent to be preserved since inflation pressures still exist, Richard Agala, Head of Research, IC Securities, an investment bank, anticipates the marginal decline in the rate to bolster economic activity.
However, Mr. Agala stated that the rate might be the same to allow the new Governor to implement his policies.
Sampson Akligoh, an economic analyst with Databank also explains that though inflation would further decline in September whilst the outlook is also favorable, a more cautious approach would force the MPC to maintain the interest rate at the same level.
“As much as the Prime Rate is targeted at inflation, the outlook for inflation for the next three months looks positive.
Thus the government should take bolder steps to reduce the interest rate. However, it might want to continue with the austerity measure to maintain the fiscal situation of the country,” said Akligoh.
He added that keeping interest rates low would boost the private sector to improve growth this year which the International Monetary Fund has pegged at 4.5 percent.
Speaking in separate interviews with BUSINESS GUIDE, Mr. Mensah said though inflation had remained stable at 19.65 percent for August, it had not been that low to push for a reduction in the Prime Rate.
“If inflation has been driven by external factors, tackling it with internal measures would not help what we want to achieve.”
Since economic managers want to stay cautious because of internal and external happenings, Mr. Mensah added that the benchmark interest rate would remain the same.
“We have seen an MPC that has not made changes to its policy over the last months, hence we may not expect significant changes in the projections,” said Mr. Agala.
Ideally, looking at the fact that the half year budget was aimed at stabilizing the economy, there should have been an attempt to marginally reduce the interest rate indicator to move the economy from stabilization to growth.
“The outlook of the economy looks robust so we should do things that would involve a vibrant private sector.”
The BoG has been able to keep the Ghanaian Cedi relatively stable against the major foreign currencies for the last two months and was urged to adopt a new foreign exchange policy to support a steady depreciation of the country’s currency in the medium to long-term.
Presently, the country’s inflation rate indicates that the Bank of Ghana’s inflation target policy to mop up excess liquidity has helped check excessive spending in the economy.
This indicates that the MPC might not alter the current Prime Rate.
Some economic indicators including fiscal and trade deficits, foreign reserves and other important indicators would also be reviewed by MPC.
It would also assess the business risk factors and announce the evaluation of the economy and other new developments in a press conference next week.
Additionally, the committee is expected to evaluate the Central Bank’s assessment of the economy and suggest appropriate policies to adopt.
With the Monetary Policy Committee (MPC) of the Bank of Ghana (BoG) set to announce developments in the economy during the last three months and also make projections for the next quarter this week, economic analysts have expressed varied opinions regarding the maintenance or change in the Prime Rate- the rate at which the Central Bank does its lending to universal banks.
The benchmark indicator of the Central Bank would be the major issue that most analysts, market watchers and private sector players would be keen in monitoring.
In Ghana, the difference between deposit interest rates and lending rates are so wide that anytime interest rates rise, the banks tend to benefit while consumers suffer.
While Nana Amoto Mensah, an economic analyst with Ecobank Development Corporation (EDC) expects the current prime rate of 18.5 percent to be preserved since inflation pressures still exist, Richard Agala, Head of Research, IC Securities, an investment bank, anticipates the marginal decline in the rate to bolster economic activity.
However, Mr. Agala stated that the rate might be the same to allow the new Governor to implement his policies.
Sampson Akligoh, an economic analyst with Databank also explains that though inflation would further decline in September whilst the outlook is also favorable, a more cautious approach would force the MPC to maintain the interest rate at the same level.
“As much as the Prime Rate is targeted at inflation, the outlook for inflation for the next three months looks positive.
Thus the government should take bolder steps to reduce the interest rate. However, it might want to continue with the austerity measure to maintain the fiscal situation of the country,” said Akligoh.
He added that keeping interest rates low would boost the private sector to improve growth this year which the International Monetary Fund has pegged at 4.5 percent.
Speaking in separate interviews with BUSINESS GUIDE, Mr. Mensah said though inflation had remained stable at 19.65 percent for August, it had not been that low to push for a reduction in the Prime Rate.
“If inflation has been driven by external factors, tackling it with internal measures would not help what we want to achieve.”
Since economic managers want to stay cautious because of internal and external happenings, Mr. Mensah added that the benchmark interest rate would remain the same.
“We have seen an MPC that has not made changes to its policy over the last months, hence we may not expect significant changes in the projections,” said Mr. Agala.
Ideally, looking at the fact that the half year budget was aimed at stabilizing the economy, there should have been an attempt to marginally reduce the interest rate indicator to move the economy from stabilization to growth.
“The outlook of the economy looks robust so we should do things that would involve a vibrant private sector.”
The BoG has been able to keep the Ghanaian Cedi relatively stable against the major foreign currencies for the last two months and was urged to adopt a new foreign exchange policy to support a steady depreciation of the country’s currency in the medium to long-term.
Presently, the country’s inflation rate indicates that the Bank of Ghana’s inflation target policy to mop up excess liquidity has helped check excessive spending in the economy.
This indicates that the MPC might not alter the current Prime Rate.
Some economic indicators including fiscal and trade deficits, foreign reserves and other important indicators would also be reviewed by MPC.
It would also assess the business risk factors and announce the evaluation of the economy and other new developments in a press conference next week.
Additionally, the committee is expected to evaluate the Central Bank’s assessment of the economy and suggest appropriate policies to adopt.
Tuesday, September 22, 2009
Nigeria: Journalist murdered
Source: Thisdayonline.com
A little over a year after a member of THISDAY Editorial Board, Mr. Abayomi Ogundeji, was murdered by suspected armed robbers, another journalist with Guardian Newspapers, Mr. Bayo Ohu, was yesterday morning killed by unknown gunmen.
Ohu, the Assistant Political Editor with The Guardian, was murdered by assassins at his No 9 Oyeniyi Street, Odukoya Estate, Egbeda, a suburb of Lagos.
According to an eyewitness, the deceased was killed by a five-man gang, who got to the area around 6.30am in a white Toyota Camry car, but waited till around 7am before going after their target.
“One of the gunmen stayed in the car, while the other four went inside. Two of them stood at the entrance to the flat while the other two rang the bell, and coincidentally it was Bayo who opened the door to allow the visitors in.
“Two of them went into the flat while the others stayed outside, probably to ward off any intruder and to inform those inside of any impending danger,” the witness said.
THISDAY learnt that immediately the assassins saw him, they shot him several times and one of the assailants went into his apartment and came out with the laptop.
While the attack was in progress, the deceased’s neighbours, curious of what was going on came out of their different apartments, but quickly scampered for safety when the gunmen started shooting sporadically into the air.
It was as a result of the ensuing confusion that the killers were able to get away.
When THISDAY visited the area yesterday, some of the neighbours, who gathered in groups outside his apartment discussing the fate that befell the journalist, said the assailants knew what they were there for and who they were looking for going by the professional way they carried out the job.
“It was several hours later that people started trooping out of the house to catch a glimpse of the lifeless body of the deceased as he was being carried into a vehicle to the hospital,” another eyewitness said.
Convinced that the gunmen were paid to assassinate Ohu, the neighbours pointed to the fact that it was only the flat that was raided and after killing their victim, the assailants made away with his laptop.
“Bayo may have stumbled on an important information, which was injurious to the image of those behind the killing. They also knew that those facts may be stored in the victim’s laptop hence the decision to go with it,” the witness added.
Confirming the incident to THISDAY on phone, Lagos State Police Public Relations Officer (PPRO), Mr. Frank Mba, said it was a case of armed robbery and murder.
Mba, a Superintendent of Police (SP), ruled out assassination.
“The police do not work on rumour. What we know is that some armed robbers shot their way into No 9 Oyeniyi Street, Odukoya Estate, Egbeda¸ which happens to be a residential house. The gunmen shot their victim dead, before bolting away with his laptop,” he said.
The PPRO further said that the vehicle used by the robbers had been recovered by the police.
He insisted that the case was a poor case of armed robbery/murder and not assassination, but that the command would not leave any stone unturned in its determination to unravel the crime.
“We do not want to join the train of speculators, but that it is only forensic investigation that could give the police a lead into the matter,” he added.
Ogundeji was also killed in controversial circumstances on August 17, 2008 at the Dopemu area of Lagos, and a coroner's inquest to unravel the circumstances leading to his death, which began on Friday, January 23, 2008 at the instance of the Lagos chapter of the Nigerian Union of Journalists (NUJ) is still ongoing.
A little over a year after a member of THISDAY Editorial Board, Mr. Abayomi Ogundeji, was murdered by suspected armed robbers, another journalist with Guardian Newspapers, Mr. Bayo Ohu, was yesterday morning killed by unknown gunmen.
Ohu, the Assistant Political Editor with The Guardian, was murdered by assassins at his No 9 Oyeniyi Street, Odukoya Estate, Egbeda, a suburb of Lagos.
According to an eyewitness, the deceased was killed by a five-man gang, who got to the area around 6.30am in a white Toyota Camry car, but waited till around 7am before going after their target.
“One of the gunmen stayed in the car, while the other four went inside. Two of them stood at the entrance to the flat while the other two rang the bell, and coincidentally it was Bayo who opened the door to allow the visitors in.
“Two of them went into the flat while the others stayed outside, probably to ward off any intruder and to inform those inside of any impending danger,” the witness said.
THISDAY learnt that immediately the assassins saw him, they shot him several times and one of the assailants went into his apartment and came out with the laptop.
While the attack was in progress, the deceased’s neighbours, curious of what was going on came out of their different apartments, but quickly scampered for safety when the gunmen started shooting sporadically into the air.
It was as a result of the ensuing confusion that the killers were able to get away.
When THISDAY visited the area yesterday, some of the neighbours, who gathered in groups outside his apartment discussing the fate that befell the journalist, said the assailants knew what they were there for and who they were looking for going by the professional way they carried out the job.
“It was several hours later that people started trooping out of the house to catch a glimpse of the lifeless body of the deceased as he was being carried into a vehicle to the hospital,” another eyewitness said.
Convinced that the gunmen were paid to assassinate Ohu, the neighbours pointed to the fact that it was only the flat that was raided and after killing their victim, the assailants made away with his laptop.
“Bayo may have stumbled on an important information, which was injurious to the image of those behind the killing. They also knew that those facts may be stored in the victim’s laptop hence the decision to go with it,” the witness added.
Confirming the incident to THISDAY on phone, Lagos State Police Public Relations Officer (PPRO), Mr. Frank Mba, said it was a case of armed robbery and murder.
Mba, a Superintendent of Police (SP), ruled out assassination.
“The police do not work on rumour. What we know is that some armed robbers shot their way into No 9 Oyeniyi Street, Odukoya Estate, Egbeda¸ which happens to be a residential house. The gunmen shot their victim dead, before bolting away with his laptop,” he said.
The PPRO further said that the vehicle used by the robbers had been recovered by the police.
He insisted that the case was a poor case of armed robbery/murder and not assassination, but that the command would not leave any stone unturned in its determination to unravel the crime.
“We do not want to join the train of speculators, but that it is only forensic investigation that could give the police a lead into the matter,” he added.
Ogundeji was also killed in controversial circumstances on August 17, 2008 at the Dopemu area of Lagos, and a coroner's inquest to unravel the circumstances leading to his death, which began on Friday, January 23, 2008 at the instance of the Lagos chapter of the Nigerian Union of Journalists (NUJ) is still ongoing.
Tuesday, September 15, 2009
GLICO Group give GH¢202,000 to Black Satellites
By Fred SARPONG
The Glico Life Insurance Company, a subsidiary of Glico General, one of the leading insurance firms in the country has presented a sponsorship package of GH¢202,000 to the Ghana Black Satellites in Accra last week.
The package includes a personal accident cover of GH¢200,000 for the 30 players and the team officials together with a cash of GH¢2,000 for the team towards their preparation to the World Youth Tournament (U-20) to held in Egypt next month.
The package is to motivate the entire team as well as supporting government and the Ghana Football Association (GFA).
Presenting the package to the team officials and GFA by a Executive Director of the company, Francisca Nyamekye Karikari said the package shall also include GH¢2,000 should the team qualify from its group stage in the first round; GH¢5,000 should the team win the cup; and GH¢2,500 should the team place second.
According to her, the company shall also give out thirty branded Polo T’ shirts to the team and the officials for use during the tournament.
She indicated that the company shall also afford the teaming supporters back home an opportunity of winning cash prizes by giving them the opportunity to predict the score of all the matches of the Satellites.
The Glico Life Insurance Company, a subsidiary of Glico General, one of the leading insurance firms in the country has presented a sponsorship package of GH¢202,000 to the Ghana Black Satellites in Accra last week.
The package includes a personal accident cover of GH¢200,000 for the 30 players and the team officials together with a cash of GH¢2,000 for the team towards their preparation to the World Youth Tournament (U-20) to held in Egypt next month.
The package is to motivate the entire team as well as supporting government and the Ghana Football Association (GFA).
Presenting the package to the team officials and GFA by a Executive Director of the company, Francisca Nyamekye Karikari said the package shall also include GH¢2,000 should the team qualify from its group stage in the first round; GH¢5,000 should the team win the cup; and GH¢2,500 should the team place second.
According to her, the company shall also give out thirty branded Polo T’ shirts to the team and the officials for use during the tournament.
She indicated that the company shall also afford the teaming supporters back home an opportunity of winning cash prizes by giving them the opportunity to predict the score of all the matches of the Satellites.
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