A couple of years ago, a new pensions Act came into effect to guarantee workers better value and a comfortable retirement package. However, some serious challenges seem to be threatening to collapse the hitherto positive idea. Charles Benoni Okine reveals the frustrations of players in the industry.
THE unexplained delays in registering the pensions/provident schemes of companies certified to manage the second and third tiers under the New Pensions Act are seriously threatening the implementation of the Act.
The Graphic Business has gathered that most of the companies which were fully set up about three years ago in readiness for the implementation of the new Act are now running out of funds they heavily invested in the business.
These companies may not be in the position to run the schemes if the National Pensions Regulatory Authority (NPRA) continues to drag its feet.
The NPRA set three deadlines for the licensing of the pension schemes of companies but have had to postpone it three times without concrete reason. The first deadline of April 30, 2012 was later changed to June, 2012 and subsequently to August 31, 2012. The August 31 deadline is past, without a single pension/provident fund scheme licensed.
The situation is creating serious anxiety among the players in the industry who claim that neighbouring Nigeria used only a month to transition after a similar reform five years ago, while uncertainty still lingered after three years in the case of Ghana.
Some of the scheme’s managers’ in-waiting told the Graphic Business on grounds of anonymity that a series of meetings held with the NPRA to find a solution to the problem had proven futile and noted that the authority seemed.
“The fate of the pension reform hangs in the balance and therefore needs serious intervention to keep the dream alive”, one of the managers said.
Temporary Pensions Fund
Aside the licensing of pension schemes, he said the Temporary Pensions Fund (TPF) had to be disbursed to trustees while the past pension credit earned by workers on the repealed schemes (SSNIT, Universities Superannuation, CAP 30 and Armed Forces Schemes) had to be crystalised.
He said there was the need for all existing privately managed schemes to be harmonised because “interestingly, we are still at step one after three years”.
To begin the implementation, he said the NPRA set up a Temporary Pension Fund (TPF) in January 2010 to provisionally administer Tier 2 pending the licensing of Trustees.
Employers have, since January 2010, been remitting five per cent of their employees’ salaries to the TPF, however, “it is unfortunate that as we speak, we all do not know how much has accrued and the statements have not been made public for the contributors to know how much has accrued,” he said.
Under the law, there are several companies and institutions which wish to register their voluntary provident fund schemes in order to enjoy the tax reliefs granted under the pension law but unfortunately, with the situation now, tax reliefs toward the voluntary Tier 3 cannot be enjoyed until schemes were licensed by the NPRA.
Investment losses
They said 15 companies have been licensed by the NPRA to administer pension schemes. These firms have hired staff - some of whom have been paid salaries for nearly three years without a single in-flow of revenue.
The continuous employment of these staff is obviously threatened. Additionally, Trustee firms have made huge investments in ICT and other infrastructure to meet the very stringent requirements set by the NPRA.
Thus, legitimate investments made by Corporate Trustees risk going down the drain, given that there was absolutely no end in sight vis-à-vis the licensing of pension schemes and hence the generation of revenues.
All of these Corporate Trustees risk collapsing as they are unable to generate revenues until pension schemes are approved. Their invested capitals are getting depleted.
The collapse of these companies will result in more than 1,000 people losing their jobs with obvious repercussions on the graduate unemployment situation not to mention financial losses facing their shareholders.
Lack of accountability in the management of TPF
The TPF was set up to achieve a wholesale transition to the second tier. This arrangement was not intended to last more than one year but, three years after it was set up, the NPRA is still running the TPF under transitional arrangements. It is natural to expect the NPRA, being the regulator of pensions, to set a good example in the area of governance and disclosure, but this is yet to happened.
Currently, contributors and employers are in the dark as to how the fund is invested and the returns earned on the investments. No financial accounts have been prepared. Employers have no confirmation of the status of their employees’ contributions and information flow to interested persons is non-existent.
They said the administrative structures designed to track the financial performance of the fund and the contributions of individual participants are also in doubt, while “the untidy administrative design of the TPF has made it difficult for beneficiaries of deceased workers to access their benefits”.
They pointed out that for a scheme covering more than 850,000 workers, caution was expected and any mismanagement will create panic and anxiety among workers and employers and, therefore, urgent remedial measures were required and immediately too.
The companies said “the transitional arrangement was designed to last one year (January 2010 to January 2011); We are, however, about to finish the third full year of the transition, with absolutely no end in sight”.
They reiterated that under the transitional arrangement, the NPRA was to open a TPF with the Bank of Ghana. Accrued contributions in the TPF were meant to be transferred from the TPF once pension schemes, run by approved Tiers 2 and 3 Trustees, had been licensed by the NPRA.
“Since we are still operating under the transition, NPRA is effectively the Fund Manager of that TPF; The NPRA has yet to render a single account on the TPF to employers and contributors in almost three years”, they said.
Meanwhile, the attention of the NPRA board has been drawn to the concerns of the companies and it has indicated its intention to respond to the issues one after the other during the week.
Tuesday, 25 September 2012
Friday, 21 September 2012
MTN inaugurates third data switch centre
Story: Charles Benoni Okine
THE leading telecommunication company in the country, MTN Ghana, inaugurated a $100 million switch and data center at Legon in Accra to enhance its service delivery to customers.
The high capacity facility brings to three, the number of switch and data centers in the country apart from those at Sakaman in Accra, and Kaase in the Ashanti Region.
Mr Misto said the center houses the latest IP technology and the superior Blade Cluster Technology, which provides high speed connectivity for greater amount of calls than any other technology does, and also seamlessly hands over traffic from a broken channel to proper ones without calls dropping.
With the sixth competitor, Glo Ghana, now in full operation, the telecoms sector is set to witness much more intense competition for which reason quality of service and good customer experience will be one of the benchmarks to maintain or lose market share.
Total investments into the three facilities comes to more than $285 million according to the General Manager for Network Service at MTN Ghana, Mr Ibrahim Misto and noted that the move was intended among other things to improve customer experience on MTN.
The new investment also bring to more than $1.2 billion the total investments the company has made in Ghanaian economy since its entry into the market more than a decade ago.
Mr Mitso said the data centre had enough redundant capacity to store large amounts of data for both individual and corporate clients.
The switches, he said could also retain a huge capacity and the technology to forestall any issues of congestion on the network.
In case of disaster on the facility at its Sakaman switch, he said the new one would automatically takeover the work load at the new facility to avoid any major disruptions in service to clients.
Mr Misto said the switch and data centre was one of the many strategies and solutions MTN was adopting to maintain its position as the operator with the best quality of network service in spite of the many challenges.
On her part, the Corporate Services Executive for MTN Ghana, Ms Cynthia Lumor, said in spite of the fact that MTN had now resorted to installing fibre on poles, instead of underground, to prevent cuts during road constructions; the fibre still gets cut through bush fires and other human activities.
Ms Lumor said MTN had invested more than US$100 million in the West African Communication System (WACS) fibre optic cable, which had already landed in Ghana, and would go live soon to further enhance services both in data and voice.
The Deputy Director of the National Communication Authority (NCA), Mr Albert Enninful said the regulator had created the environment for telcos to thrive and urged them to take advanatage of the opportunity to provide quality service to customers.
THE leading telecommunication company in the country, MTN Ghana, inaugurated a $100 million switch and data center at Legon in Accra to enhance its service delivery to customers.
The high capacity facility brings to three, the number of switch and data centers in the country apart from those at Sakaman in Accra, and Kaase in the Ashanti Region.
Mr Misto said the center houses the latest IP technology and the superior Blade Cluster Technology, which provides high speed connectivity for greater amount of calls than any other technology does, and also seamlessly hands over traffic from a broken channel to proper ones without calls dropping.
With the sixth competitor, Glo Ghana, now in full operation, the telecoms sector is set to witness much more intense competition for which reason quality of service and good customer experience will be one of the benchmarks to maintain or lose market share.
Total investments into the three facilities comes to more than $285 million according to the General Manager for Network Service at MTN Ghana, Mr Ibrahim Misto and noted that the move was intended among other things to improve customer experience on MTN.
The new investment also bring to more than $1.2 billion the total investments the company has made in Ghanaian economy since its entry into the market more than a decade ago.
Mr Mitso said the data centre had enough redundant capacity to store large amounts of data for both individual and corporate clients.
The switches, he said could also retain a huge capacity and the technology to forestall any issues of congestion on the network.
In case of disaster on the facility at its Sakaman switch, he said the new one would automatically takeover the work load at the new facility to avoid any major disruptions in service to clients.
Mr Misto said the switch and data centre was one of the many strategies and solutions MTN was adopting to maintain its position as the operator with the best quality of network service in spite of the many challenges.
On her part, the Corporate Services Executive for MTN Ghana, Ms Cynthia Lumor, said in spite of the fact that MTN had now resorted to installing fibre on poles, instead of underground, to prevent cuts during road constructions; the fibre still gets cut through bush fires and other human activities.
Ms Lumor said MTN had invested more than US$100 million in the West African Communication System (WACS) fibre optic cable, which had already landed in Ghana, and would go live soon to further enhance services both in data and voice.
The Deputy Director of the National Communication Authority (NCA), Mr Albert Enninful said the regulator had created the environment for telcos to thrive and urged them to take advanatage of the opportunity to provide quality service to customers.
rlg takes competition to another level
rlg Communications, in its quest to be the first indigenous company to revolutionlise the communication sector in the country and Africa has partnered Microsoft to enable it achieve that giant dream. Charles Benoni Okine reports.
THE Chief Executive Officer of rlg Communications and Chairman of AGAMS Group, Mr Roland Agambire, has stated that the deal with Microsoft is a landmark endorsement which will place the rlg laptops, computers and tablets on an equal footing as the other brands on the international market.
He told the Graphic Business that “it has been a long journey to achieve this feat and the company is excited about the move because it will not only give confidence to users of our products but also give us the nerve to conquer Africa”
His comments come on the back of a major partnership deal the company sealed with Microsoft Corporation of the United States of America (USA) in a move that paves the way for the company to incorporate all Microsoft software including the famous Windows on all its PCs, laptops and tablets.
The deal, described as a landmark opportunity for rlg, constitutes a key endorsement of the rlg brand which is already making waves in the country and other African countries. It further paves the way for the company’s quest to depart from the assembling of its products to full scale manufacturing of which 30,000 people would be employed.
By this, rlg will also begin to launch Microsoft Windows 8, which is expected to hit by the close of the year, and give credence to the quality of products being offered on the market.
“It is a great endorsement for rlg products because we have taken the careful look at the partnership and think that we should be able to give value to Ghanaians”, Mr Agambire said.
According to Mr Agambire, “This also allows us to make Microsoft Windows more affordable in terms of the pricing because we have very good pricing from Microsoft and we will be able to deliver that to the doorstep of the consumer by not quoting high prices for our laptops, desktops to the Ghanaians and other customers on the African continent as a whole”.
Most of the computers and laptops and tablets on the market have no inbuilt Microsoft and this opens the gateway for counterfeiting of Windows among many other applications developed by Microsoft.
Since most of the computers and laptops that hit the African market have no such licence, it is expected the giant move by rlg will enable it better compete with its competitors such as the Dell, Acer, Sony among others.
He said what rlg is doing in the ICT sector is to create the leadership role and create the environment that will allow other businesses to grow out of it and this will help Ghana to attract a lot of foreign investors and foreign income among others into the economy.
This, Mr Agambire said means that the foreign currencies that would have been spent to import components would be saved to help strengthen the cedi.
Mr Agambire said by the time rlg increased its market share in the sub-region, it will also be increasing the market share of Microsoft.
He expressed gratitude to Microsoft and hoped that the partnership will last long as the two parties grow their businesses.
Mr Onyeje said this relationship is a not a local relationship but an international one between rlg and Microsoft Corporation and it is at the same level as the other large brands across the world.
He said a lot of work was done in terms of due diligence to ensure that the deal stands the test of time.
Mr Onyeje said “Windows is the heart of who we are as Microsoft and anyone who comes to us to get Windows at special pricing come close to the heart of Microsoft and so this is significant and very important for us”.
He said the company is happy to be part of the rlg brand because in terms of the impact of providing computing to the masses, it is in line with the vision of the Founder of the company, Bill Gates who intends to put a PC in every desk in every home and “we find a partner to do that in rlg.
MICROSOFTMicrosoft Corporation is an American multinational corporation headquartered in Redmond, Washington, United States that develops, manufactures, licenses and supports a wide range of products and services related to computing. The company was founded by Bill Gates and Paul Allen on April 4, 1975. Microsoft is the world's largest software maker measured by revenues. It is also one of the world's most valuable companies.
Microsoft was established to develop and sell BASIC interpreters for the Altair 8800. It rose to dominate the personal computer operating system market with MS-DOS in the mid-1980s, followed by the Microsoft Windows line of operating systems.
The company's 1986 initial public offering, and subsequent rise in its share price, created an estimated three billionaires and 12,000 millionaires from Microsoft employees.
Since the 1990s, it has increasingly diversified from the operating system market and has made a number of corporate acquisitions. In May 2011, Microsoft acquired Skype Technologies for $8.5 billion in its largest acquisition to date.
As of 2012, Microsoft is market dominant in both the PC operating system and office suite markets (the latter with Microsoft Office). The company also produces a wide range of other software for desktops and servers, and is active in areas including internet search (with Bing), the video game industry (with the Xbox and Xbox 360 consoles), the digital services market (through MSN), and mobile phones (via the Windows Phone OS).
In June 2012, Microsoft announced that it would be entering the PC vendor market for the first time, with the launch of the Microsoft Surface tablet computer.
THE Chief Executive Officer of rlg Communications and Chairman of AGAMS Group, Mr Roland Agambire, has stated that the deal with Microsoft is a landmark endorsement which will place the rlg laptops, computers and tablets on an equal footing as the other brands on the international market.
He told the Graphic Business that “it has been a long journey to achieve this feat and the company is excited about the move because it will not only give confidence to users of our products but also give us the nerve to conquer Africa”
His comments come on the back of a major partnership deal the company sealed with Microsoft Corporation of the United States of America (USA) in a move that paves the way for the company to incorporate all Microsoft software including the famous Windows on all its PCs, laptops and tablets.
The deal, described as a landmark opportunity for rlg, constitutes a key endorsement of the rlg brand which is already making waves in the country and other African countries. It further paves the way for the company’s quest to depart from the assembling of its products to full scale manufacturing of which 30,000 people would be employed.
By this, rlg will also begin to launch Microsoft Windows 8, which is expected to hit by the close of the year, and give credence to the quality of products being offered on the market.
“It is a great endorsement for rlg products because we have taken the careful look at the partnership and think that we should be able to give value to Ghanaians”, Mr Agambire said.
According to Mr Agambire, “This also allows us to make Microsoft Windows more affordable in terms of the pricing because we have very good pricing from Microsoft and we will be able to deliver that to the doorstep of the consumer by not quoting high prices for our laptops, desktops to the Ghanaians and other customers on the African continent as a whole”.
Most of the computers and laptops and tablets on the market have no inbuilt Microsoft and this opens the gateway for counterfeiting of Windows among many other applications developed by Microsoft.
Since most of the computers and laptops that hit the African market have no such licence, it is expected the giant move by rlg will enable it better compete with its competitors such as the Dell, Acer, Sony among others.
He said what rlg is doing in the ICT sector is to create the leadership role and create the environment that will allow other businesses to grow out of it and this will help Ghana to attract a lot of foreign investors and foreign income among others into the economy.
This, Mr Agambire said means that the foreign currencies that would have been spent to import components would be saved to help strengthen the cedi.
Mr Agambire said by the time rlg increased its market share in the sub-region, it will also be increasing the market share of Microsoft.
He expressed gratitude to Microsoft and hoped that the partnership will last long as the two parties grow their businesses.
Mr Onyeje said this relationship is a not a local relationship but an international one between rlg and Microsoft Corporation and it is at the same level as the other large brands across the world.
He said a lot of work was done in terms of due diligence to ensure that the deal stands the test of time.
Mr Onyeje said “Windows is the heart of who we are as Microsoft and anyone who comes to us to get Windows at special pricing come close to the heart of Microsoft and so this is significant and very important for us”.
He said the company is happy to be part of the rlg brand because in terms of the impact of providing computing to the masses, it is in line with the vision of the Founder of the company, Bill Gates who intends to put a PC in every desk in every home and “we find a partner to do that in rlg.
MICROSOFTMicrosoft Corporation is an American multinational corporation headquartered in Redmond, Washington, United States that develops, manufactures, licenses and supports a wide range of products and services related to computing. The company was founded by Bill Gates and Paul Allen on April 4, 1975. Microsoft is the world's largest software maker measured by revenues. It is also one of the world's most valuable companies.
Microsoft was established to develop and sell BASIC interpreters for the Altair 8800. It rose to dominate the personal computer operating system market with MS-DOS in the mid-1980s, followed by the Microsoft Windows line of operating systems.
The company's 1986 initial public offering, and subsequent rise in its share price, created an estimated three billionaires and 12,000 millionaires from Microsoft employees.
Since the 1990s, it has increasingly diversified from the operating system market and has made a number of corporate acquisitions. In May 2011, Microsoft acquired Skype Technologies for $8.5 billion in its largest acquisition to date.
As of 2012, Microsoft is market dominant in both the PC operating system and office suite markets (the latter with Microsoft Office). The company also produces a wide range of other software for desktops and servers, and is active in areas including internet search (with Bing), the video game industry (with the Xbox and Xbox 360 consoles), the digital services market (through MSN), and mobile phones (via the Windows Phone OS).
In June 2012, Microsoft announced that it would be entering the PC vendor market for the first time, with the launch of the Microsoft Surface tablet computer.
FDIs to Ghana
Charles Benoni Okine looks at the nature of Foreign Direct Investments (FDI) inflows into the country under the Presidency of the late Professor John Evans Fiifi Attah Millis.
In 2009 Ghana went through a peaceful transition with a change of government.
The smooth change which happened even after a very tight contest raised Ghana’s profile as the beacon of Africa when it comes to democracy, a phenomenon which increased the confidence level of investors across the world and they found the country a safe haven to invest.
The total number of projects registered for the year 2010 was 385 with a total estimated value of GH¢1.79 billion (US$1.279 billion) as against 257 projects registered for the year 2009 with a total estimated value of GH¢867.98 million (US$619.99 million).
This represented an increase of 49.81 per cent and 106.78 per cent in the total number of projects registered and the estimated value for those projects respectively.
The total initial capital transfers amounted to GH¢82.38 million (US$58.84 million) for the four quarters in 2010.
The total initial capital transfers for the corresponding year of 2009 amounted to GH¢152.03 million (US$108.6 million).
From the number of new projects registered in the fourth quarter the expected jobs created stood at 3,564.
The year 2011 was indeed described as an action year for the country as far as the attraction of Foreign Direct Investment (FDI) was concerned.
The Ghana Investment Promotion Centre (GIPC) again exceeded its FDI inflows target was US$1.5 billion but this was exceeded to record US$5.32 billion for 2011.
The total number of registered projects was 514, an increase of over 33 per cent from 2010 resulting in a total estimated value of GH¢11.52 billion (US$7.68 billion).
Total FDI of GH¢10.23 billion (US$6.82 billion) with a local currency amounting to GH¢1.296 billion (US$864.08 million) was also recorded.
Total initial capital transfers in the period under review stood at GH¢319.94 million (US$213.29 million), an increase of 200 per cent from 2010.
Total jobs expected to be created was at the time was 46,761 with 3,589 out of the total being jobs for non-Ghanaians. This was, however, a significant decrease of more than 78.22 per cent from 2010.
International ranking
Ghana was ranked as the third-best country in Africa that received Foreign Direct Investments (FDI) on the continent last year.
The latest United Nations World Investment report 2012 published a couple of weeks ago week said the country’s performance in attracting FDIs was largely based on the developments in the upstream petroleum sector, which is now being developed following the discovery of oil in commercial quantities half a decade ago.
The report authored by the United Nations Conference on Trade and Development (UNCTAD), Ghana -- which trails Nigeria and South-Africa in attracting Foreign Direct Investments (FDI) - received approximately US$3.2billion FDI inflows at the end of 2011 compared to US$2.5billion two years ago and US$2billion in 2009.
UNCTAD through its research noticed that new oil- and gas-producing countries are emerging as major recipients of FDI as foreign investors look farther afield in search of oil and gas reserves.
The report said Ghana in particular benefitted from FDI in the newly-developed Jubilee oil field, where commercial production started in December 2010.
Inflows to West Africa according to the report were destined primarily for Ghana and Nigeria, which together account for some three-quarters of the sub-region’s inflows.
However, the UN Trade facilitation arm believes improvements in the way the country attracts FDI signals longer-term changes in the investment climate.
In 2009 Ghana went through a peaceful transition with a change of government.
The smooth change which happened even after a very tight contest raised Ghana’s profile as the beacon of Africa when it comes to democracy, a phenomenon which increased the confidence level of investors across the world and they found the country a safe haven to invest.
The total number of projects registered for the year 2010 was 385 with a total estimated value of GH¢1.79 billion (US$1.279 billion) as against 257 projects registered for the year 2009 with a total estimated value of GH¢867.98 million (US$619.99 million).
This represented an increase of 49.81 per cent and 106.78 per cent in the total number of projects registered and the estimated value for those projects respectively.
The total initial capital transfers amounted to GH¢82.38 million (US$58.84 million) for the four quarters in 2010.
The total initial capital transfers for the corresponding year of 2009 amounted to GH¢152.03 million (US$108.6 million).
From the number of new projects registered in the fourth quarter the expected jobs created stood at 3,564.
The year 2011 was indeed described as an action year for the country as far as the attraction of Foreign Direct Investment (FDI) was concerned.
The Ghana Investment Promotion Centre (GIPC) again exceeded its FDI inflows target was US$1.5 billion but this was exceeded to record US$5.32 billion for 2011.
The total number of registered projects was 514, an increase of over 33 per cent from 2010 resulting in a total estimated value of GH¢11.52 billion (US$7.68 billion).
Total FDI of GH¢10.23 billion (US$6.82 billion) with a local currency amounting to GH¢1.296 billion (US$864.08 million) was also recorded.
Total initial capital transfers in the period under review stood at GH¢319.94 million (US$213.29 million), an increase of 200 per cent from 2010.
Total jobs expected to be created was at the time was 46,761 with 3,589 out of the total being jobs for non-Ghanaians. This was, however, a significant decrease of more than 78.22 per cent from 2010.
International ranking
Ghana was ranked as the third-best country in Africa that received Foreign Direct Investments (FDI) on the continent last year.
The latest United Nations World Investment report 2012 published a couple of weeks ago week said the country’s performance in attracting FDIs was largely based on the developments in the upstream petroleum sector, which is now being developed following the discovery of oil in commercial quantities half a decade ago.
The report authored by the United Nations Conference on Trade and Development (UNCTAD), Ghana -- which trails Nigeria and South-Africa in attracting Foreign Direct Investments (FDI) - received approximately US$3.2billion FDI inflows at the end of 2011 compared to US$2.5billion two years ago and US$2billion in 2009.
UNCTAD through its research noticed that new oil- and gas-producing countries are emerging as major recipients of FDI as foreign investors look farther afield in search of oil and gas reserves.
The report said Ghana in particular benefitted from FDI in the newly-developed Jubilee oil field, where commercial production started in December 2010.
Inflows to West Africa according to the report were destined primarily for Ghana and Nigeria, which together account for some three-quarters of the sub-region’s inflows.
However, the UN Trade facilitation arm believes improvements in the way the country attracts FDI signals longer-term changes in the investment climate.
Glo doubles market share in two months
Story: Charles Benoni Okine
Glo Mobile Ghana has doubled its market share to four per cent, two months after it started full commercial operations in the country.
The company, which entered the market after its three year stay outside the market because of its inability to launch its commercial service, managed some two per cent of the market just after one month’s operation, closing the month of May with 468,508 subscribers, but as of the end of June, the figure had shot up to 990,566 subscribers.
The achievement of the company puts it 40 clear days ahead of its target of registering at least one million subscribers in the first 100 days of the commencement of its commercial services in the country.
The total cellular/mobile voice subscriber base in Ghana as at June 2012, according to the National Communications Authority (NCA), stood at 23,370,773 from the May 2012 figure of 22,453,907.
Glo has been aggressive with its campaign to draw more people to its fold by offering what some subscribers in the country refer to as “juicy packages” and quality network services which they do not normally get from the five operators already in the system before Glo.
Officials of the company are still tight-lipped about the achievements of the company so far.
MTN, which maintained its lead in the market, registered a marginal increase in the subscriber base from 10,644,804 in May to 10,757,974.
However, it suffered another drop in its market share from 47 per cent in May to 46 per cent in June.
Second placed Vodafone had its subscriber base move upwards to 4,819,700 at the close of June, representing 21 per cent of the total market share. In the previous month, Vodafone had 4,671,999 subscribers, representing the same 21 per cent.
Tigo had a marginal increase in its subscriber base as it moved up to 3,553,274 in June, representing 15 per cent of the market. The company, whose subscriber base had been dropping in the last few months had registered 3,457,427 for the month of May.
Airtel increased its subscriber base to 3,021,863 for June, representing 13 per cent of the total market share. May subscribers were just 3,015,499.
Expresso increased its subscriber base to 227,396 from 195,670 subscribers in May. .However, the increase did not affect its total market share.
Glo Mobile Ghana has doubled its market share to four per cent, two months after it started full commercial operations in the country.
The company, which entered the market after its three year stay outside the market because of its inability to launch its commercial service, managed some two per cent of the market just after one month’s operation, closing the month of May with 468,508 subscribers, but as of the end of June, the figure had shot up to 990,566 subscribers.
The achievement of the company puts it 40 clear days ahead of its target of registering at least one million subscribers in the first 100 days of the commencement of its commercial services in the country.
The total cellular/mobile voice subscriber base in Ghana as at June 2012, according to the National Communications Authority (NCA), stood at 23,370,773 from the May 2012 figure of 22,453,907.
Glo has been aggressive with its campaign to draw more people to its fold by offering what some subscribers in the country refer to as “juicy packages” and quality network services which they do not normally get from the five operators already in the system before Glo.
Officials of the company are still tight-lipped about the achievements of the company so far.
MTN, which maintained its lead in the market, registered a marginal increase in the subscriber base from 10,644,804 in May to 10,757,974.
However, it suffered another drop in its market share from 47 per cent in May to 46 per cent in June.
Second placed Vodafone had its subscriber base move upwards to 4,819,700 at the close of June, representing 21 per cent of the total market share. In the previous month, Vodafone had 4,671,999 subscribers, representing the same 21 per cent.
Tigo had a marginal increase in its subscriber base as it moved up to 3,553,274 in June, representing 15 per cent of the market. The company, whose subscriber base had been dropping in the last few months had registered 3,457,427 for the month of May.
Airtel increased its subscriber base to 3,021,863 for June, representing 13 per cent of the total market share. May subscribers were just 3,015,499.
Expresso increased its subscriber base to 227,396 from 195,670 subscribers in May. .However, the increase did not affect its total market share.
‘Use social media as election tool’
Social media has become a powerful tool that makes or breaks. With the tension building up towards the 2012 elections in Ghana, Charles Benoni Okine reports on how this new trend can help ensure free and fair elections.
A Nigerian lecturer at the African University College of Communications, Mr Ogochukwu Chidiebere Nweke, has called on Ghanaians to seriously consider the use of social media to ensure successful elections in the country come December 7, 2012.
According to him, the credentials of Ghana when it comes to democracy has made it an attractive investment destination, an achievement which also benefits countries such as Nigeria among others and therefore, there is the need for the electorate to capitalise on the power of social media to jealously guard that credential.
In an exclusive interview with the Graphic Business, Mr Nweke, used the Nigerian example as a test case saying; “The involvement of the Nigerian youth and users of social media saw to it that the 2011 elections were free and fair for the first time in the history of the nation”.
He mentioned for instance, Facebook and Twitter in particular as the friendliest platforms which many are used to and noted that with many Ghanaian on those platforms, they could use it to help the process.
According to him, Smart phones were the main tools used to access the various social media platforms adding that “when the INEC (Independent National Electoral Commission) noticed how the social media was being used, it also came on the platform to present Nigerians not just with the opportunity to participate in governance as far the elections were concerned by answering thorny questions raised by the electorate”
“The social media gave Nigerians the grounds to believe that there is a way to ensure accountability and a “free and fair” election process;
It gave them so much faith, that the 2011 elections recorded the highest turn out of voters since 1983”, he added.
Mr Nweke said the “Nigerian youth who hitherto did not believe that their votes counted for anything, were the ones who came out to their polling stations hours before the elections to queue and wait for their turn to vote”.
“So, Facebook and Twitter as simple as they are became the platform upon which the destiny of Nigeria was decided”, he said.
He noted, however that, “It did not negate the traditional ways of doing things (whether in the media or with society in general), but it provided another platform which drove the point home, that Nigerians and Africans can get it right with anything they want to achieve.”
“It also silenced detractors and many sections of the internal media which had the sole intention of reporting that the elections were violent but to all intense and purposes it was free and fair”, he said.
Mr Nkweke said; “The outcome of that election process, was not victory for PDP, but victory for all Nigerians”.
About social media
Social media has, in recent times become one of the major sources through which people reach each other. All day and night, people use social media to send information to friends, locate old friends, market their products and others use it as a devotional tool to reach people with the word of God.
Social media includes web- and mobile-based technologies which are used to turn communication into interactive dialogue among organisations, communities, and individuals.
According to socialbakers, a popular website, Facebook monitoring also helps to improve people’s business and social media marketing strategy in every country.
Currently, there are 1,411,160 Facebook (FB) users alone in the Ghana, which makes it 73rd in the ranking of all Facebook statistics by Country although the the total cellular/mobile voice subscriber base in Ghana as at July, 2012 stood at 23,658,697 in July as against 23,370,773 in June, according to the National Communications Authority (NCA).
In terms of penetration, it is 5.80 per cent in Ghana in relation to the country's population, and 108.80 per cent in terms of the number of Internet users. The total number of FB users in Ghana is reaching 1,411,160 and grew by more than 209440 in the last 6 months.
In Ghana, political parties are not sparing this unique platform as all the Presidential candidates can now be found on Facebook and Twitter in particular.
They are using it for their campaigns and are posting their messages on their blocks from where they receive positive feedback.
In other advanced democracies, political parties have used social media not only to spread their political ideology but to raise funds to campaign, a typical example being President Obama who used the social media to reach the grassroot people to contribute towards his campaign.
Why social media
Since 1992 when Ghana adopted the fourth republican constitutions, the Electoral Commission (EC) has always come under severe fire from political parties, notably, those in opposition. They complain that the EC has allowed itself to be used by the ruling party to manipulate figures in the strong room to win the elections.
But in one of such rebuttals, the most celebrated Chairman of an electoral commission in Ghana, Mr Afari Gyan, has maintained that it is not possible for any political party to manipulate figures when the results have been submitted to the EC headquarters from the various constituencies.
How social media can helpThe total cellular/mobile voice subscriber base in Ghana as at July, 2012 stood at 23,658,697 in July as against 23,370,773 in June. It is expected that this figure will hit the 24 million mark and beyond by Election Day.
This means that at least every electorate (13 million according to the EC) has a phone.
Without mischief, there are a number of things people can do with their phones to assist the process to be smooth and be one without violence in any form.
First, the electorate can take photos of the election process at polling stations and even record the declaration of the results mentioned for each party and put them on social media for the world, that is, their friends within Ghana and abroad to monitor the process. This can also be used to compare against the figures as they will be released at the constituency collation level and also at the national level.
Second, the electorate can use the power of their phones to record any violent acts or suspicious activities at every polling station or the collation centre and send them on Facebook or Twitter for the world to see.
Third, the phones can also be used to make calls to radio and television stations to report violent acts that can mar the beauty of the elections and cause mayhem. Most of the television and radio stations are also on social media and, once verified, can post them online.
It is necessary to note that the world keenly follows Ghana’s elections and therefore, the international radio will also be interested in such videos to put on their platform. It is happening in Syria and it was what helped spark the uprising in Tuninsia, Egypt and the other Arab countries.
A Nigerian lecturer at the African University College of Communications, Mr Ogochukwu Chidiebere Nweke, has called on Ghanaians to seriously consider the use of social media to ensure successful elections in the country come December 7, 2012.
According to him, the credentials of Ghana when it comes to democracy has made it an attractive investment destination, an achievement which also benefits countries such as Nigeria among others and therefore, there is the need for the electorate to capitalise on the power of social media to jealously guard that credential.
In an exclusive interview with the Graphic Business, Mr Nweke, used the Nigerian example as a test case saying; “The involvement of the Nigerian youth and users of social media saw to it that the 2011 elections were free and fair for the first time in the history of the nation”.
He mentioned for instance, Facebook and Twitter in particular as the friendliest platforms which many are used to and noted that with many Ghanaian on those platforms, they could use it to help the process.
According to him, Smart phones were the main tools used to access the various social media platforms adding that “when the INEC (Independent National Electoral Commission) noticed how the social media was being used, it also came on the platform to present Nigerians not just with the opportunity to participate in governance as far the elections were concerned by answering thorny questions raised by the electorate”
“The social media gave Nigerians the grounds to believe that there is a way to ensure accountability and a “free and fair” election process;
It gave them so much faith, that the 2011 elections recorded the highest turn out of voters since 1983”, he added.
Mr Nweke said the “Nigerian youth who hitherto did not believe that their votes counted for anything, were the ones who came out to their polling stations hours before the elections to queue and wait for their turn to vote”.
“So, Facebook and Twitter as simple as they are became the platform upon which the destiny of Nigeria was decided”, he said.
He noted, however that, “It did not negate the traditional ways of doing things (whether in the media or with society in general), but it provided another platform which drove the point home, that Nigerians and Africans can get it right with anything they want to achieve.”
“It also silenced detractors and many sections of the internal media which had the sole intention of reporting that the elections were violent but to all intense and purposes it was free and fair”, he said.
Mr Nkweke said; “The outcome of that election process, was not victory for PDP, but victory for all Nigerians”.
About social media
Social media has, in recent times become one of the major sources through which people reach each other. All day and night, people use social media to send information to friends, locate old friends, market their products and others use it as a devotional tool to reach people with the word of God.
Social media includes web- and mobile-based technologies which are used to turn communication into interactive dialogue among organisations, communities, and individuals.
According to socialbakers, a popular website, Facebook monitoring also helps to improve people’s business and social media marketing strategy in every country.
Currently, there are 1,411,160 Facebook (FB) users alone in the Ghana, which makes it 73rd in the ranking of all Facebook statistics by Country although the the total cellular/mobile voice subscriber base in Ghana as at July, 2012 stood at 23,658,697 in July as against 23,370,773 in June, according to the National Communications Authority (NCA).
In terms of penetration, it is 5.80 per cent in Ghana in relation to the country's population, and 108.80 per cent in terms of the number of Internet users. The total number of FB users in Ghana is reaching 1,411,160 and grew by more than 209440 in the last 6 months.
In Ghana, political parties are not sparing this unique platform as all the Presidential candidates can now be found on Facebook and Twitter in particular.
They are using it for their campaigns and are posting their messages on their blocks from where they receive positive feedback.
In other advanced democracies, political parties have used social media not only to spread their political ideology but to raise funds to campaign, a typical example being President Obama who used the social media to reach the grassroot people to contribute towards his campaign.
Why social media
Since 1992 when Ghana adopted the fourth republican constitutions, the Electoral Commission (EC) has always come under severe fire from political parties, notably, those in opposition. They complain that the EC has allowed itself to be used by the ruling party to manipulate figures in the strong room to win the elections.
But in one of such rebuttals, the most celebrated Chairman of an electoral commission in Ghana, Mr Afari Gyan, has maintained that it is not possible for any political party to manipulate figures when the results have been submitted to the EC headquarters from the various constituencies.
How social media can helpThe total cellular/mobile voice subscriber base in Ghana as at July, 2012 stood at 23,658,697 in July as against 23,370,773 in June. It is expected that this figure will hit the 24 million mark and beyond by Election Day.
This means that at least every electorate (13 million according to the EC) has a phone.
Without mischief, there are a number of things people can do with their phones to assist the process to be smooth and be one without violence in any form.
First, the electorate can take photos of the election process at polling stations and even record the declaration of the results mentioned for each party and put them on social media for the world, that is, their friends within Ghana and abroad to monitor the process. This can also be used to compare against the figures as they will be released at the constituency collation level and also at the national level.
Second, the electorate can use the power of their phones to record any violent acts or suspicious activities at every polling station or the collation centre and send them on Facebook or Twitter for the world to see.
Third, the phones can also be used to make calls to radio and television stations to report violent acts that can mar the beauty of the elections and cause mayhem. Most of the television and radio stations are also on social media and, once verified, can post them online.
It is necessary to note that the world keenly follows Ghana’s elections and therefore, the international radio will also be interested in such videos to put on their platform. It is happening in Syria and it was what helped spark the uprising in Tuninsia, Egypt and the other Arab countries.
Ghana’s transition to digital TV positive but …
Ghana is ambitiously working towards migrating from analogue to digital terrestrial television by the close of the 2014, a year ahead of the International Telecommunications Union (ITU) deadline a year after. Courtesy Multichoice Ghana, Charles Benoni Okine reports from Johannesburg on the way forward.
A Television Studio Consultant at Multichoice Africa, Mr Angus M. Clarke, has lauded efforts by the Ghana government to migrate from analogue to digital terrestrial television (DTT) as a positive move but cautioned it to follow its implementation plan religiously to avoid any hitches.
“They must have a big plan of how to roll out that process because that is very key to the success of that migration and to be able to meet the deadline as set by the world body”, he said.
Mr Clarke gave the advice in an exclusive interview with the Graphic Business at the headquarters of Multichoice in Johannesburg.
It was shortly after the Minister of Communications, Mr Haruna Iddrisu, together with his delegation, has toured some of the facilities of Multichoice as part of a plan to acquaint himself with the requirements of DTT.
Mr Clarke said one analogue takes a lot of bandwidth but the DTT can take as many as 16 channels which mean that the players in the industry must be ready to increase their content as well as upgrade existing ones to make it exciting and appealing to viewers.
“How much content do the television stations have in Ghana because they will have the capacity to put out a lot of content and programming over the time space to be created through DTT”, he said.
He also raised the delicate issue about set-up boxes and noted that the boxes have to be heavily subsidized to enable majority of the people who do not want to watch the national television to have access to their choice.
Mr Clarke also noted that at the start of the migration, the national broadcaster must conduct a thorough research to know the standards for the set-up boxes to enable them to meet at least the minimum standard as it pertains to each region.
“By now they should have decided on the protocols and type of boxes and they must be manufactured with the size of the population in mind and the targeted people who will be given the boxes”, he added.
Mr Clarke said the dstv holders already have the national broadcaster on it and it is free to air but those who want other stations and channels must have their set-up boxes.
Benefits of migration.The migration will bring about; Higher Spectrum Efficiency as shown; Better Picture quality; Clearer Sound (CD quality audio); More Stations and therefore more choice; More Interactivity (including electronic programming guides (EPG), games, among others things.
Why the migration
The migration has become necessary to enable Ghana to; Comply with and adopt the tenets of the International Telecommunications Union (ITU) Conference in Geneva in the year 2006 (GE-06) Agreement; To rapidly adopt spectrum efficient methods in the management of the scarce RF spectrum; To broaden its utility as a resource in the interest and benefit of stakeholders; To prevent dumping of obsolete analogue TV equipment into the country to protect both investors and consumers; To enhance the quality and experience of TV viewers in Ghana
Role of Network Operator / Signal Distributor
According to a report on the implementation of the migration process, the various network operators and
signal distributors will have to deal with issues of carriage of the signal from source to distribution site; distribution of the signal to designated transmission sites; broadcast of the signal within the service area
Their Obligations
They are supposed to provide services to broadcasters on an equitable, reasonable, non-preferential and non-discriminatory basis; Adhere to license conditions as provided by the Regulator; Provide quality delivery of broadcasting services as per contract between the signal distributor and the broadcaster; Ensure that the digital transmission coverage is similar to or better than the existing analogue transmission coverage; Regularly apprise the Regulator on (a regular basis, on) the utilization of frequency channels and broadcasters’ database; Avail all the network configurations to the regulator; Set tariffs commensurate to services provided.
In a related development, Mr Iddrisu said Ghana’s migration from the analogue to the digital terrestrial television system will begin from October 1, 2014, to enable the country to meet a deadline of the end of 2014.
Consequently, he said a Chinese company, after a competitive bidding process, has been selected to undertake the digital migration process which involves design and construction of “a reliable cost effective, energy efficient infrastructure system that will lead to improvement in picture quality and make us benefit from spectrum dividend at a total cost of $95 million”.
The General Manager of Multichoice Ghana, Mr Cecil Sunkwa-Mills also described the determination of the government to migrate the country as a laudable idea and one which will be of enormous benefit to the people.
He said there will be free spectrum space that could be used for other relevant purposes that will benefit the state.
Mr Sunkwa-Mills said Multichoice was ready to offer the government any assistance to ensure that the process is carried out without any hitches
A Television Studio Consultant at Multichoice Africa, Mr Angus M. Clarke, has lauded efforts by the Ghana government to migrate from analogue to digital terrestrial television (DTT) as a positive move but cautioned it to follow its implementation plan religiously to avoid any hitches.
“They must have a big plan of how to roll out that process because that is very key to the success of that migration and to be able to meet the deadline as set by the world body”, he said.
Mr Clarke gave the advice in an exclusive interview with the Graphic Business at the headquarters of Multichoice in Johannesburg.
It was shortly after the Minister of Communications, Mr Haruna Iddrisu, together with his delegation, has toured some of the facilities of Multichoice as part of a plan to acquaint himself with the requirements of DTT.
Mr Clarke said one analogue takes a lot of bandwidth but the DTT can take as many as 16 channels which mean that the players in the industry must be ready to increase their content as well as upgrade existing ones to make it exciting and appealing to viewers.
“How much content do the television stations have in Ghana because they will have the capacity to put out a lot of content and programming over the time space to be created through DTT”, he said.
He also raised the delicate issue about set-up boxes and noted that the boxes have to be heavily subsidized to enable majority of the people who do not want to watch the national television to have access to their choice.
Mr Clarke also noted that at the start of the migration, the national broadcaster must conduct a thorough research to know the standards for the set-up boxes to enable them to meet at least the minimum standard as it pertains to each region.
“By now they should have decided on the protocols and type of boxes and they must be manufactured with the size of the population in mind and the targeted people who will be given the boxes”, he added.
Mr Clarke said the dstv holders already have the national broadcaster on it and it is free to air but those who want other stations and channels must have their set-up boxes.
Benefits of migration.The migration will bring about; Higher Spectrum Efficiency as shown; Better Picture quality; Clearer Sound (CD quality audio); More Stations and therefore more choice; More Interactivity (including electronic programming guides (EPG), games, among others things.
Why the migration
The migration has become necessary to enable Ghana to; Comply with and adopt the tenets of the International Telecommunications Union (ITU) Conference in Geneva in the year 2006 (GE-06) Agreement; To rapidly adopt spectrum efficient methods in the management of the scarce RF spectrum; To broaden its utility as a resource in the interest and benefit of stakeholders; To prevent dumping of obsolete analogue TV equipment into the country to protect both investors and consumers; To enhance the quality and experience of TV viewers in Ghana
Role of Network Operator / Signal Distributor
According to a report on the implementation of the migration process, the various network operators and
signal distributors will have to deal with issues of carriage of the signal from source to distribution site; distribution of the signal to designated transmission sites; broadcast of the signal within the service area
Their Obligations
They are supposed to provide services to broadcasters on an equitable, reasonable, non-preferential and non-discriminatory basis; Adhere to license conditions as provided by the Regulator; Provide quality delivery of broadcasting services as per contract between the signal distributor and the broadcaster; Ensure that the digital transmission coverage is similar to or better than the existing analogue transmission coverage; Regularly apprise the Regulator on (a regular basis, on) the utilization of frequency channels and broadcasters’ database; Avail all the network configurations to the regulator; Set tariffs commensurate to services provided.
In a related development, Mr Iddrisu said Ghana’s migration from the analogue to the digital terrestrial television system will begin from October 1, 2014, to enable the country to meet a deadline of the end of 2014.
Consequently, he said a Chinese company, after a competitive bidding process, has been selected to undertake the digital migration process which involves design and construction of “a reliable cost effective, energy efficient infrastructure system that will lead to improvement in picture quality and make us benefit from spectrum dividend at a total cost of $95 million”.
The General Manager of Multichoice Ghana, Mr Cecil Sunkwa-Mills also described the determination of the government to migrate the country as a laudable idea and one which will be of enormous benefit to the people.
He said there will be free spectrum space that could be used for other relevant purposes that will benefit the state.
Mr Sunkwa-Mills said Multichoice was ready to offer the government any assistance to ensure that the process is carried out without any hitches
Banking awards to be reviewed annually
Story: Charles Benoni Okine
Corporate Initiative Ghana (CIG), organisers of the Ghana Banking Awards, has assured the banks and the public of its resolve to improve the methodology used in assessing the players in the industry.
It said the move was to ensure that concerns raised and recommendations made were factored into the new methodology for the next awards to continuously ensure fairness and transparency.
The Executive Secretary of CIG, Mr Afotey Odarteifio, gave the assurance when he led a delegation to pay a courtesy call on the acting Governor of the Bank of Ghana, Dr Henry Kofi Wampa. The delegation also used the opportunity to present copies of the 2011 Banking Awards Survey Report to Mr Wampa.
Mr Odarteifio said CIG was committed to ensuring a level playing field for participating banks “because we recognise the level of competition within the sector and we will do our utmost to ensure a fair assessment of customers’ experiences of banking services to promote the credibility of the awards further.”
Mr Odarteifio said holding the awards for 11 consecutive years without a break was a testimony of CIG’s resolve to meet one of its core objectives of ensuring a competitive and vibrant banking sector in the country.
He mentioned that the Technical Committee (which comprises representatives of all the participating banks, the event statisticians and the executives of CIG) held at least three meetings to make inputs into the methodology before the questionnaire were administered on the field.
“At the technical committee meetings, the representatives of the banks are allowed to brainstorm with the events statisticians on how each award category should be structured and that, to us, is not only crucial but important,” Mr Odartefio said.
He pointed out that what the customers said about the banks was used to determine the results and, therefore, urged the banks to take the comments of their customers seriously to enable them to serve them better.
Mr Odarteifio said CIG was also working frantically behind the scenes to organise the Ghana Rural and Community Banking Awards as well as the Ghana Insurance Awards in an effort to bring similar competition into their operations.
He said CIG would welcome any support from the central bank to sustain the awards which had become one of the biggest corporate events on the country’s calendar.
Mr Odarteifio also urged other corporate bodies to support the awards as they also stood to gain from a highly competitive banking sector in the country.
The Chief Host of the Rural and Community banking Awards, Mr Dela Serlomey, who was part of the delegation, said the processes had been set in motion to make the rural and community banking awards a reality.
Mr Serlomey intimated that the Ghana Rural and Community Banks Awards would be held next year, in collaboration with the Association of Rural Banks and support of the ARB Apex Bank, and would see a higher level of competition in the rural and community bank space that would generate better services for customers in that market segment.
He expressed confidence that through the Rural and Community Banks Awards, the service quality deficit between the rural banks and the universal banks could be bridged, therefore democratising banking in the Ghanaian economy.
Dr Wampa expressed gratitude to CIG for making the report available to the bank for its perusal.
He also commended the banking awards organisers for initiating an event which was also complementing the bank’s effort to ensure that the commercial banks remained competitive to serve their customers better.
The 2011 awards saw UT Bank lifting the coveted award as the Bank of the Year for the first time since it became eligible to compete for it.
Corporate Initiative Ghana (CIG), organisers of the Ghana Banking Awards, has assured the banks and the public of its resolve to improve the methodology used in assessing the players in the industry.
It said the move was to ensure that concerns raised and recommendations made were factored into the new methodology for the next awards to continuously ensure fairness and transparency.
The Executive Secretary of CIG, Mr Afotey Odarteifio, gave the assurance when he led a delegation to pay a courtesy call on the acting Governor of the Bank of Ghana, Dr Henry Kofi Wampa. The delegation also used the opportunity to present copies of the 2011 Banking Awards Survey Report to Mr Wampa.
Mr Odarteifio said CIG was committed to ensuring a level playing field for participating banks “because we recognise the level of competition within the sector and we will do our utmost to ensure a fair assessment of customers’ experiences of banking services to promote the credibility of the awards further.”
Mr Odarteifio said holding the awards for 11 consecutive years without a break was a testimony of CIG’s resolve to meet one of its core objectives of ensuring a competitive and vibrant banking sector in the country.
He mentioned that the Technical Committee (which comprises representatives of all the participating banks, the event statisticians and the executives of CIG) held at least three meetings to make inputs into the methodology before the questionnaire were administered on the field.
“At the technical committee meetings, the representatives of the banks are allowed to brainstorm with the events statisticians on how each award category should be structured and that, to us, is not only crucial but important,” Mr Odartefio said.
He pointed out that what the customers said about the banks was used to determine the results and, therefore, urged the banks to take the comments of their customers seriously to enable them to serve them better.
Mr Odarteifio said CIG was also working frantically behind the scenes to organise the Ghana Rural and Community Banking Awards as well as the Ghana Insurance Awards in an effort to bring similar competition into their operations.
He said CIG would welcome any support from the central bank to sustain the awards which had become one of the biggest corporate events on the country’s calendar.
Mr Odarteifio also urged other corporate bodies to support the awards as they also stood to gain from a highly competitive banking sector in the country.
The Chief Host of the Rural and Community banking Awards, Mr Dela Serlomey, who was part of the delegation, said the processes had been set in motion to make the rural and community banking awards a reality.
Mr Serlomey intimated that the Ghana Rural and Community Banks Awards would be held next year, in collaboration with the Association of Rural Banks and support of the ARB Apex Bank, and would see a higher level of competition in the rural and community bank space that would generate better services for customers in that market segment.
He expressed confidence that through the Rural and Community Banks Awards, the service quality deficit between the rural banks and the universal banks could be bridged, therefore democratising banking in the Ghanaian economy.
Dr Wampa expressed gratitude to CIG for making the report available to the bank for its perusal.
He also commended the banking awards organisers for initiating an event which was also complementing the bank’s effort to ensure that the commercial banks remained competitive to serve their customers better.
The 2011 awards saw UT Bank lifting the coveted award as the Bank of the Year for the first time since it became eligible to compete for it.
Resgister local businesses with GIPC – George Aboagye
By Charles Benoni Okine
The Chief Executive Officer of the Ghana Investment Promotion Centre (GIPC), Mr Goerge Aboagye, has called on local companies to register their businesses with the centre to enable them to enjoy the same incentives as their foreign competitors.
Speaking at the launch of the 2011 Ghana Club 100 in Accra, he said “there is no discrimination when it comes to the benefits of registering businesses with the centre; Local or foreign, they enjoy the same incentives so come and register”.
At the heavily attended event, Produce Buying Company (PBC) became one of the few companies to retain its title as the best company in the country.
PBC was adjudged the second largest company in the country as well as the Leader in the Services Sector Ranking.
New entrants, rlg Communications, was a adjudged the second best company in the country, a feat many at the programme anticipated because of the fast growth of the company in the last few years.
Rlg was also mentioned as the first among the three fastest growing companies in the country while it also came tops as the best entrant company to the prestigious club.
Enterprise Life Assurance Company (ELAC) also pulled a surprise to become the third best company within the club.
Abosso Goldfields Limited emerged the fourth best company in the club after it had been mentioned as the second best taxpayer in the country.
Ghana Home Loans; Kasapreko Company Limited and Goldfields Ghana Limited came fifth, sixth and seventh respectively in the ranking.
Ghana Community Network Services Ltd (GCNet); Auto Plaza Limited and UT Bank Limited finished at the eighth, ninth and 10th positions respectively to complete the top 10 companies among the country’s best 100.
On the day, rural banks again show a lot of strength as they demonstrated good corporate governance, growth, profit and sustainability, a move which made them to outperform many of the big financial institutions, particularly the banks, in the country.
Local business owners have at many for a complained about their inability to access a package of incentives that their foreign competitors enjoy, thereby making the cost of imports and operations expensive.
According to them, in the long run, their products become more expensive as compared to their foreign counterparts.
But Mr Aboagye allayed their fears by asking them to open up and register their businesses with the GIPC.
“If they do so, they will enjoy tax relieves, exemptions among others”, he said adding that the law is explicit on the issue and, therefore, there was no cause for alarm.
He said the centre will also intensify its investment promotion to attract more businesses to invest in the country.
Mr Aboagye said by the end of the second quarter, the GIPC has registered up to GhC5.5 billion as compared to the same period in 2009 which recorded about GhC 350 million.
Of the amount, he said the Foreign Direct Investment (FDI) component was GhC4.5 billion.
The occasion was also used to launch ‘The Report: Ghana 2012’, an Oxford Business Group’s second annual review of the Ghanaian economy, a culmination of eight months of in-country research conducted by a team of analysts based in Accra.
According to The Report, “Ghana’s economy is enjoying robust medium-term outlook but it will need to address weaknesses if that growth is to be sustained”.
The Chief Executive Officer of the Ghana Investment Promotion Centre (GIPC), Mr Goerge Aboagye, has called on local companies to register their businesses with the centre to enable them to enjoy the same incentives as their foreign competitors.
Speaking at the launch of the 2011 Ghana Club 100 in Accra, he said “there is no discrimination when it comes to the benefits of registering businesses with the centre; Local or foreign, they enjoy the same incentives so come and register”.
At the heavily attended event, Produce Buying Company (PBC) became one of the few companies to retain its title as the best company in the country.
PBC was adjudged the second largest company in the country as well as the Leader in the Services Sector Ranking.
New entrants, rlg Communications, was a adjudged the second best company in the country, a feat many at the programme anticipated because of the fast growth of the company in the last few years.
Rlg was also mentioned as the first among the three fastest growing companies in the country while it also came tops as the best entrant company to the prestigious club.
Enterprise Life Assurance Company (ELAC) also pulled a surprise to become the third best company within the club.
Abosso Goldfields Limited emerged the fourth best company in the club after it had been mentioned as the second best taxpayer in the country.
Ghana Home Loans; Kasapreko Company Limited and Goldfields Ghana Limited came fifth, sixth and seventh respectively in the ranking.
Ghana Community Network Services Ltd (GCNet); Auto Plaza Limited and UT Bank Limited finished at the eighth, ninth and 10th positions respectively to complete the top 10 companies among the country’s best 100.
On the day, rural banks again show a lot of strength as they demonstrated good corporate governance, growth, profit and sustainability, a move which made them to outperform many of the big financial institutions, particularly the banks, in the country.
Local business owners have at many for a complained about their inability to access a package of incentives that their foreign competitors enjoy, thereby making the cost of imports and operations expensive.
According to them, in the long run, their products become more expensive as compared to their foreign counterparts.
But Mr Aboagye allayed their fears by asking them to open up and register their businesses with the GIPC.
“If they do so, they will enjoy tax relieves, exemptions among others”, he said adding that the law is explicit on the issue and, therefore, there was no cause for alarm.
He said the centre will also intensify its investment promotion to attract more businesses to invest in the country.
Mr Aboagye said by the end of the second quarter, the GIPC has registered up to GhC5.5 billion as compared to the same period in 2009 which recorded about GhC 350 million.
Of the amount, he said the Foreign Direct Investment (FDI) component was GhC4.5 billion.
The occasion was also used to launch ‘The Report: Ghana 2012’, an Oxford Business Group’s second annual review of the Ghanaian economy, a culmination of eight months of in-country research conducted by a team of analysts based in Accra.
According to The Report, “Ghana’s economy is enjoying robust medium-term outlook but it will need to address weaknesses if that growth is to be sustained”.
Friday, 7 September 2012
Airtel sparks another tariff war … No roaming charges to 16 African countries
The heat is on in the telecom sector as Airtel sparks another tariff war which is expected to drag its competitors along. Charles Benoni Okine reports.
Airtel has removed roaming charges on calls to and from all its operational countries in Africa.
It said subscribers on the network can use their mobile phones without paying roaming charges in any area they find themselves under what it calls “One Network”.
Airtel presently operates in 17 countries in Africa including Ghana.
The other countries are Nigeria, Burkina Faso, Sierra Leone, Niger, Kenya, Uganda, Tanzania, Rwanda, Malawi, Gabon, Chad, Congo DRC, Madagascar, Congo, Seychelles and Zambia.
According to the Marketing Director of Airtel Ghana, Mr Oare Ojeikere, “Airtel’s One Network means that subscribers who travel to any of the above countries can receive calls for free and be charged at the local rates of their respective countries when they make calls”.
“They can additionally top up their airtime using Airtel scratch cards bought from the streets of the countries they are visiting without bothering about roaming charges”, he added.
This new development comes at a time when Airtel has added another country, Rwanda, to its operations, bringing to 17, and the number of countries it operates in Africa.
Presently, Airtel’s competitors seem to have reached their wit ends as far as call tariff per minute is concerned although Glo Mobile Ghana intends to re-spark the war after quoting the lowest tariff per minute.
Presnetly, apart from MTN’s Gp9, the rest charge Gp8 per minute and considering the interconnect charges at Gp5 per minute; it is likely none can be in the position to go a little below.
Already, the cost of operations has increased drastically particularly at a time when the cedi has depreciated fast against the major foreign currencies including the dollar, the most widely used foreign currency.
Some analysts in the sector are of the view that the price war in the telecom sector is likely to shift from local calls to international roaming charges a move, Airtel seem to have started.
Mr. Ojeikere explained that “the One Network idea ensures that our subscribers pay less for calls even when they are away from their home countries; clearly this reduces the phone bills of the over 50 million subscribers Airtel has across the 17 countries we operate in”.
Airtel Ghana has also introduced a series of attractive promos for customers who wish to use its network to make international calls to destinations like the USA, India, China, and Singapore among others.
Thursday, 6 September 2012
Vodafone drops in market share .. . Glo exceeds target
Story: Charles Benoni Okine
VODAFONE Ghana, the country’s second largest telecommunications company has dropped marginally in market share for the first time after it took over the second spot from tiGO.
According to the latest July market statistics for the industry released by the regulator, National Communications Authority (NCA), the company’s subscriber base dipped marginally from 4,819,700 (21 per cent) in June to 4,758,272 representing 20 per cent of the total market share.
It is not clear whether the drop is a result of the fast growing subscriber numbers of Glo Mobile which began commercial operations in May, this year.
Glo, the latest entrant to the country’s telecommunications competition exceeded its target of one million subscribers in 100 days of operation by a little over 15 per cent.
Its current subscriber base as of July this year stood at 1,152,474, representing five per cent of the total market share. This is compared to its first two months of operations which yielded 990,566 subscribers in June.
The mobile operators set for itself a one million target at the launch of its commercial service in May this year with a pledge to outwit the major competitors in the sector.
By this feat, Glo is now the fifth biggest telecommunications company in the country after MTN, Vodafone, tiGO and Airtel.
Glo has also sparked what analysts describe as a ‘tariff war’ by introducing the lowest call tariffs in the country.
According to the company, for a minute, all its subscribers will pay Gp6 per minute of call to any network as against the industry average of Gp8 per minute.
MTN, however had a marginal increase in its subscriber base and maintained its position as the market leader.
Its subscriber base jumped marginally from 10,757,974 in June this year to 10,828,585 in July, representing 46 per cent of total market share.
tiGO had a marginal subscriber base increase from 3,553,274 in June to close at 3,699,185 in July, representing 15 per cent of the market.
Airtel, which has also been consistent with its movement in subscriber base, increased its subscriber base to 3,037,336 representing 13 per cent of the total market share from 3,021,863 subscribers for June.
After gaining in June with a subscriber base of 227,396, Expresso unfortunately lost heavily to record just 182,845 in July.
However, in spite of the loss, it maintained its one per cent total market share.
Meanwhile, the total cellular/mobile voice subscriber base in Ghana as at July, 2012 stood at 23,658,697 in July as against 23,370,773 in June.
Wednesday, 5 September 2012
SSNIT sheds stake in Merchant Bank Ghana
Story: Charles Benoni Okine
SSNIT is offloading 75 per cent of its stake to FirstRand of South Africa while maintaining 23 per cent in Merbank and SIC Life maintaining 2 per cent of its original 15 per cent holding.
FirstRand, which is the second biggest bank in South Africa submitted the best proposal to beat Energy Bank and Fidelity Bank - both banks in Ghana. The deal when consummated will take the competition in the banking sector to a higher level.
In an interview with the Daily Graphic about the sale, the Director General of SSNIT, Dr Frank Odoom, did not mention the price for the sale of the majority stake in Merbank but sources close to the deal intimated the price to be more than GH¢170 million.
He said “Merchant Bank has put up a notice to that effect and we are still waiting for some regulatory approvals from the Bank of Ghana and the South Africa Reserve Bank.” He added that “these are approvals that should be obtained to consummate the deal”.
On the rationale behind the sale, Dr Odoom said Merchant Bank has been struggling over the past few years “and things were not as good as they should be. The shareholders were not getting the returns that they desired hence the need to infuse into the bank new and experienced strategic partners to shape the future of the bank”.
The SSNIT Director General maintained that the rationale for the sale of the stake in the bank is a pure business decision predicated on the desire of SSNIT to improve on its returns on investment to protect contributors’ funds in the wake of the challenges emanating from the pension reforms.
On perceptions regarding transparency of the deal, Dr Odoom said “FirstRand won the bid on merit because bid submitted were analysed by independent transaction advisors. The proposals were rigorously analysed on several quantitative and qualitative parameters and FirstRand proposal was adjudged superior to all the others”.
Shareholders after several consultations, he said, also approved the FirstRand proposal “because they were all convinced that the deal would serve their best interest and they have confidence that when finally consummated they will have better returns on investment.
“FirstRand is the second biggest bank in South Africa and has a big Balance Sheet and is noted for acquiring controlling interest in banks in the sub region and many other African countries”, he said.
Dr Odoom was confident that Merchant Bank will within a short time develop the muscle to compete with the “Big” banks in the country
Meanwhile, Daily Graphic investigations has revealed that following the announcement, there is some uneasy calm presently at Merchant Bank because some employees fear losing their jobs.
But Dr Odoom gave the assurance that there is no cause for alarm, saying “they should have no fears because occupational dislocation are not envisaged as a direct consequence of this deal”.
“It should be expected, however, that in acquisitions of this nature some structural changes to the organisation is inevitable, all with the objective of ensuring efficiency and effectiveness in operations and management, delivery of quality service to clients and stakeholders, improved product and processes to achieve higher returns on investment to shareholders”
SSNIT begins actuarial valuation of pension scheme
Story: Charles Benoni Okine
THE Social Security and National Insurance Trust (SSNIT) has launched a comprehensive actuarial valuation of the pension scheme it manages to determine its true state of health.
The process which is expected to last for a couple of months is the first by the Trust after the passage of the new Pension Act which has reduced the contributions of workers to the scheme.
According to the Director-General of SSNIT, Dr Frank Odoom, “It is the actuarial valuation of the scheme that can give a better picture of the scheme and also allow SSNIT to take corrective measures to sustain the scheme.”
The new Act has created a three-tier concept meant to provide more options for people to plan for their retirement.
The objectives of the Pension Act are to provide pension benefits to ensure retirement income security for all categories of workers in the country.
It is also to ensure that workers receive retirement and related benefits as and when they are due, and to establish a uniform set of rules, regulations and standards for the administration and payment of retirement benefits for workers, both in the public and private companies and institutions.
The new Pension Act provides for pension in the country through the introduction of a contributory three-tier pension scheme, the establishment of a National Pensions Regulatory Authority to oversee the administration and management of registered pension schemes and Trustees of registered schemes as well as the re-establishment of a Social Security and National Insurance Trust to provide for related matters.
The first tier is a mandatory occupational scheme to be run by a restructured SSNIT. Contributions will be 13.5 per cent of gross salary. Retirement benefits will be only in the form of monthly income and death and invalidity benefits should a contributor die before retirement. SSNIT will no longer pay the one-off lump sum benefit at retirement.
The second tier is another mandatory occupational scheme to be run by approved Trustees licensed by the regulatory body but managed by private fund managers. Contributions to the scheme would be five per cent of the employee’s gross salary. Benefits would be lump sum payments which are expected to be higher than presently exists under SSNIT and CAP 30.
The third tier is voluntary fully funded provident fund and personal pension scheme managed by private fund managers.
Before the passage of the Act, there was an actuarial report which indicated that workers contributions of 17.5 per cent of their salary should be contributed to the scheme each month to ensure its sustenance.
The report also suggested that the scheme needed to record at least 2.25 per cent of real returns on all its investments to make the scheme sustainable.
But Dr Odoom said, “I believe that with the rough calculations from the gap created with the benefits and the changing the dynamics in the system, we need four cent real returns to bridge that cup.
He said because of the new Act, the contribution of workers has been reduced by four per cent to 13.5 per cent.
There is a further reduction of two per cent which is used to cater for the national health Insurance Scheme of contributors. In the end, only per cent is left for the Trust to invest.
Dr Odoom said there were more than one million contributors who are paid pensions on a monthly basis.
“GH¢40 million paid is to 120,000 pensioners in the country every month,” he disclosed.
That, he said, had gone up from about GH¢36 million the previous year but for the indexation which is the review of the annual increments they receive.
Dr Odoom added, “the report is expected to be interesting” and noted that the valuation is done every three years but this is the first being undertaken since the introduction of the new Act.
He said the management of the Trust had put in place a number of measures, including prudent expenditure patterns, to reduce waste in the system.
Dr Odoom said the Trust had also taken steps to ensure that investments made by the Trust were viable and profitable to ensure that the returns were enough to sustain the scheme.
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I am, Charles Benoni Okine, a financial reporter for Graphic Business, the financial newspaper of the Graphic Communications Group Limited.
I am, Charles Benoni Okine, a financial reporter for Graphic Business, the financial newspaper of the Graphic Communications Group Limited.
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