The government has justified its decision to back financial support arrangements that would raise the minimum capital requirement levels of seven local banks.
Last year, the Bank of Ghana raised the minimum capital requirement of commercial banks from GH¢120 million to GH¢400 million and set a December 31, 2018 deadline.
According to the central bank, some 22 banks have so far met the new minimum capital requirement, but some local banks have been struggling to meet it.
The justification by government comes in the wake of accusations of double standards and bias by some industry watchers who suggest that the banks to be supported have been given preferential treatment.
According to a government source, it was forced to support the planned bailout arrangement – which is private-sector led – because should the banks fold up, it will have a devastating effect on the economy.
The struggling local banks, according to the government, are making a significant contribution to the economy in terms of payment of taxes and providing employment.
For instance, the source noted that “we were worried about the direct and indirect job losses coming just after the collapse of the seven commercial banks.”
The government, according to the source, is concerned that the economy may not be ready to absorb another round of indirect jobs that will be occasioned if the seven struggling banks go down.
The government also considered the fact that if these banks are made to operate as savings and loans companies because of their inability to meet the new capital requirement, it will restrict a lot of business activities which would in turn impact negatively on their earnings and jobs.
Concerns of bias, double standards
The government has also rejected claims of bias and double standards over how it handled the situation.
The news about the planned financial support for these local banks has resulted in some raising serious concerns about why the government allowed some other seven banks to go down.
But the government has maintained that, unlike the seven collapsed banks, these local banks were managed and they were not insolvent like the other financial institutions, “so it is not fair to allow them to go down, just because of a little top up to recapitalize.”
Proposed financial deal for the local banks
The proposed deal, Joy Business has learned, is a private sector lead deal, which has resulted in the creation of the “Ghana Amalgamated Trust,” also known as a “Special Purpose Vehicle.” The trust is hoping to leverage some private pension funds being managed and “lend” it to these banks in return for equity or call it a “controlling” stake.
What would the deal mean to affected banks?
Joy Business is also learning that this is not free money or a bail out, but rather, support that would result in having equity in these banks.
We are also learning that this deal would result in a possible takeover of key positions in the banks like Managing Directors and Financial Controllers. There are also plans to float their interest and possibly list on the Ghana Stock Exchange. Joy Business has also revealed that in the future, some of these banks could be merged.
It is still not clear for now the total number of local banks that have finally signed up for the proposed financial arrangement.
Some of these banks are still looking at whether they should take up this government-backed deal or go ahead with their plan to merge with other banks.
Source: Ghana Web
Ghana Leads Africa In Gold Production
South Africa’s struggling gold industry has suffered yet another humiliation, losing its status as continental leader to Ghana.
The country that led global gold production for a century and extracted about half the bullion mined to date is now Africa’s second-largest gold producer. Output is shrinking as operators capitulate to stubbornly high costs, regular strikes and the geological challenges of tapping the world’s deepest mines.
Meanwhile Ghana, a country whose gold-mining industry dates back to the 19th century, is benefiting from lower-cost mines, friendlier policies and new development projects.
South African industry stalwarts AngloGold Ashanti Ltd. and Gold Fields Ltd. are shifting their focus to other countries — including Ghana — where deposits are cheaper and easier to mine. The largest remaining gold miner in South Africa, Sibanye Gold Ltd., is cutting thousands of jobs and diversifying into platinum-group metals as it struggles to contain costs.
The difficulties facing South African gold mines mean output is contracting even though it’s got the world’s second-largest reserves of the metal, according to estimates from the U.S. Geological Survey.
In Ghana, gold output jumped 12% in 2018, according to data from the country’s Chamber of Mines. Small producers account for the largest share of the total, although the nation also hosts some of the world’s biggest gold miners, including No. 1 producer Newmont Goldcorp Corp. While Newmont is exploring in Ethiopia, Ghana is the only place in Africa where it operates.
“It’s an important part of our portfolio and, geologically we see really good potential to continue to expand,” Chief Executive Officer Gary Goldberg said in an interview. “We’re very happy operating in Ghana.”
The West African nation’s output will get a further boost when AngloGold Ashanti’s Obuasi operation, previously overrun by illegal miners, restarts later this year. Production from Obuasi is forecast at 350,000 to 450,000 ounces of gold annually during the first 10 years.
The Obuasi operation “will be an engine for growth” for AngloGold, CEO Kelvin Dushnisky said in September. The company is investing as much as $500 million to revive the mine.
Gold Fields, which has operated in Ghana for 26 years, says authorities there understand what makes for a “sound” business environment. The country cut corporate taxes in 2016 and in 2017 changed Gold Fields’ mineral royalty to a sliding scale based on the gold price, from a 5% flat rate.
“The government of Ghana’s 10% free-carry stake in all mining companies provides a level of security to the investment,” said Sven Lunsche, spokesman for Gold Fields.
Back in South Africa, a dearth of exploration and investment means the sector that once powered Africa’s most-industrialized economy will continue to shrink, said Mineral Resources and Energy Minister Gwede Mantashe. As South Africa’s 130-year-old industry limps toward its final years, mining investors must look beyond gold for better returns, he said.
“Gold is an old sector and naturally it will decline,” Mantashe said. “New minerals that are discovered are becoming more important.”
Kasapreko Donates To Chief Imam To Mark EID-UI-FITR
Ghana's leading and most successful beverage company, Kasapreko Company Limited has donated one of it’s latest innovations, Smart Choice flavoured water and other brands including Awake Purified Drinking Water, Storm Energy drink, Chocomalt, Kiddy Pack drinks to the National Chief Imam, Sheikh Dr. Usamanu Nuhu Sharabutu to mark this year’s Eid-UI-Fitr.
Presenting the donation at the office of the National Chief Imam in Accra, Mr. Chris Addo – Sarkodie, Marketing Manager at Kasapreko said the donation was in line with their social responsibility and given the reverence and stature of the National Chief Iman, the company felt it proper to undertake this exercise.
He also maintained that they look forward to stronger relationship with the Office of the Chief Iman in the ensuing years.
National Chief Imam Sheik Dr. Osmanu Nuhu Sharubutu applauded Kasapreko company Limited for the kind gesture and used the opportunity to pray for the entire nation – appealing to Muslims to bridge the gap between the rich and poor by way of giving to the needy and less privileged in the society and the Muslim community.
Sheikh Aremeyaw Shaibu (Spokesperson for the National Chief Imam), who received the donation expressed appreciation for the kind gesture.
Chief Imam ended the ceremony with a prayer that Allah blesses the company in all its endeavours.
Kasapreko Wins Most Admired Brand In Africa
Kasapreko company limited, one of the leading and most successful beverage producing company in Ghana emerged among the Top 25 most admired brands in Africa. This was announced at the 7th annual Brand Africa report in Belgium on the 24th May 2019.
Kasapreko company limited is the only Ghanaian business that made it to the top 25 most admired brands in Africa, according to the report unveiled by Johannesburg Stock Exchange (JSE) in partnership with Geopoll , Kantar, Brand Leadership and Africa Business Magazine.
Brand Africa 100 is a Pan Africa survey and ranking of Africa’s best brand developed by Brand Leadership. The rankings are based on comprehensive survey by Geopoll, a global leader in providing high quality market research in emerging markets and strategies analysis weighted by consumer admiration and Kantar, the world leading Data, Insight and consulting firm.
Kasapreko Company Limited beats brands such as Amarula, Jumia , Kenya Airways, Ethiopian Airlines, Star Beer, Kwese among others in the categories of Alcoholic Beverages, Retail, Aviation, Food , Media and Personal Care.
Commenting on the award, Mr. Richard Adjei, Managing Director of Kasapreko said, This honour is dedicated to the hard working staff of the company, Key distributors and partners for their continues support and growth to the organisation.
He also thanked the customers and consumers of kasapreko brands on the continent which has seen the company been ranked as the most indigenous Ghana beverage provider in Africa.
Mr. Gerald Bonsu, the commercial Director also added that the company’s brand portfolio holds the most loved brands such as Alomo Bitters, Storm Energy Drink, Awake Purified Drinking Waater , K20 Whiskey, sold in the world.
Mr. Bonsu assured that the Flagship brand of the product of KCL , Alomo Bitters is in its 20th Anniversary. Alomo Bitters which is a scientifically formulated herbal alcoholic beverage has met all international students selling in many countries across the world.
Kasapreko Company limited is a multi National total beverage company having with product line categories such as Water, Wine, Cuder, Liquor and whiskey.
The company has bagged several awards including West Africa Business Excellence Awards, Export Manufacturing company of the year, Alcoholic Bitter of the year (Alomo Bitters, Manufacturer of the year (Kasaperko Company Limited) , Best Local Tax Compliance Company of the Year by Ghana Revenue Authority, ISO Certified Company and Ghana Club 100 among others …
THE YCEO: Stonebwoy, And Others Make 2019 Top 50 Young CEOs in Ghana List.
Multiple awards winning Ghanaian Reggae/ Dancehall and Afro-fusion heavyweight, Livingstone Etse Satekla, professionally known as Stonebwoy, has peaked 35 of 50 slots as the young Ghanaian Chief Executive Officer(CEO) 2019.
TheYCEO & Avance Media have officially released the 2019 list of the Top 50 Young CEOs in Ghana, an annual ranking which celebrates and acknowledge young Ghanaian CEOs excelling in various sectors of the economy. The 2019 list features 50 of Ghana’s most successful young business leaders across finance, technology, entertainment, agribusiness, fashion, social enterprise, media and has representation in both private and public sectors.
The list which was launched in 2018, has set out to honour distinguished young people pursuing the agenda of providing solutions to some of Ghana’s and the world’s pertinent problems.
According to Martin Sedem, TheYCEO & Avance Media is elated about the accomplishments of the honourees and their passion towards creating a better economy for all by leading the way to create jobs and solve unemployment in Ghana and the rest of Africa.
According to research lead, Prince Akpah, this year’s list themed, Futuristic CEOs, features young entrepreneurs and leaders selected from notable private and public institutions who have displayed outstanding leadership with an inspiring story worth emulating by other young people across Africa.
Notable among the honourees are entrepreneurs such as, Stonebwoy of Burniton Music & DBlack of Black Avenue Music, Beryl Agyekum Ayaaba of EchoHouse, Dentaa Amoateng MBE of GUBA Awards & Richie Mensah of Lynx Entertainment.
Below is the full list of the 2019 Top 50 Young CEOs in Ghana arranged in alphabetical order:
1. Alhaji Salamu Amadu || Afro Arab Group of Companies
2. Anthony Dzamefe || Caveman Watches
3. Awura Abena Agyeman || Wear Ghana
4. Beryl Agyekum Ayaaba || EchoHouse Ghana
5. Caroline Pomeyie || ProFish Ghana
6. Claud Kweku A. Hutchful || DreamOval
7. Daniel Kojo Soboh || Cabon AV
8. David Asante || Ghana Publishing Company
9. Dentaa Amoateng MBE || GUBA Awards
10. Desmond Kwesi Blackmore (Dblack) || Black Avenue Music
11. Elsie Appau-Klu || Acreaty Management Plc
12. Emmanuel Ansah Amprofi || TROTRO Tractor Ltd
13. Emmanuel Kojo Jones-Mensah || Empire Domus
14. Emmanuel Sin-nyet Asigri || National Youth Authority
15. Eric Ofosu Nkansah || Accra Digital Center
16. Ernest De-Graft Egyir || Chief Executives Network Ghana Ltd
17. Francis Obirikorang || Agrocenta
18. Gloria Akoto || First Finance Company Limited
19. Gregory Rockson || mPharma
20. Hanan Abdul-Wahab || National Food Buffer Stock Company
21. Hayford Siaw || Ghana Library Authority
22. John Dumelo || Farmer
23. Jorge Appiah || Kumasi Hive
24. Josiah Kwesi Eyison || iSpace
25. Kafui Adzah || Akosombo Bar
26. Kevin Okyere || Springfield Group
27. Kofi Asamoah || Kofas Media
28. Kosi Yankey || NBSSI
29. Kwabena Boateng || Plantation Resources Limited
30. Kwadwo Safo Jnr. || Kantanka Automobile
31. Kwaku Boateng Akuoko || Brommon Bespoke
32. Kwame A.A. Opoku || The Reset Global People
33. Latif Abubakar || Globe Productions
34. Lexy Owusu-Boahene || LX HR Solutions
35. Livingstone Etse Satekla (Stonebwoy) || Burniton Music
36. MacCarthy Mac-Gbathy || Hopin Academy
37. Mustapha Ussif || National Service Scheme
38. Nelson Amo || Innohub
39. Peter Sedufia || OldFilm Productions
40. Prince Bonney || iCode Hub
41. Rashida Nasamu || I-ZAR Group
42. Regina Honu || Soronko Solutions
43. Richard Adjei Mensah Ofori Atta || E ON 3 Group
44. Richard Briandt || Codetrain
45. Richie Mensah || Lynx Entertainment
46. Roberta Annan || Roberta Annan Consulting
47. Sadiq Abdulai Abu || 3 Music Network
48. Sangu Delle || Golden Palm Investments Corporation
49. Shadrack Frimpong || Cocoa360
50. William Edem Senyo || Impact Hub Accra
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