March 2006 - Ghanaian-German Economic Association

Newsletter March 2006 No. 17, Page 1 of 9
Dear Members,
I am just returning from a short Ghana promotion tour
from 1 st March until 5 th March 2006 in a snow cold
Germany. Along with Hon. Alan Kyerematen, Minister for
Trade & Industry and Ambassador Peter Linder, I spoke
at the Ghana Information Day in Munich, organized by
Afrika-Verein. I met also representatives of the
Chambers of Commerce in Hamburg, Afrika-Verein and
the Ghana Union in Hamburg. On page 4 you will find the
detailed report.
Our new executive secretary Patrick Martens will
continue our promotion and contact cycle with his
Germany trip in April, promoting Ghana and GGEA at
two Ghana Info Days, sourcing trade missions and trade
fair representations and intensifying contacts with the
German Chambers of Commerce and Afrika-Verein.
In the office of GGEA we have a new periodical staff
member. Mr. Senam Kalitsi has joined the GGEA office
as an intern for a six months period, supporting us during
the maternity leave of our secretary Ruby Aboagye-Atta,
which is expected to start any moment from now.
As we have won quite a number of new members, some
of them big names in the International Business
community, we wish to give them the opportunity to
introduce their companies in a short presentation at our
next event, the GGEA Happy Hour on Tuesday, 28 th
March at the British Council. Hoping to meet you in
numbers over there.
Stephen Antwi
President
New Members at GGEA
GERMAN AUTOMOTIVE
PARTS
Kwabena Boachie
Director
Joseph B. Winful
Senior Partner
SEE NEW
CORPORATE RATES ON
PAGE 2 AND 3
Our Upcoming Event –GGEA Happy Hour Dinner
‘New Members at GGEA’
Speakers: David Kudoadzi – Lexkudoz
Ishmael Yamson – Yamson & Associates
Christian Munteanu – Deng Ltd.
Stephen Kyeremanten – Munich Re Group
Helge Ziehe
– Helge Ziehe Berbauberatung
Susanne Goerllich – Universal Motors Ltd.
Jan Suck
– German Automotive Parts
Venue:
Date
& Time:
British Council
(opposite Cedi House)
Wednesday, 29 th March 2006
5 pm – 7 pm
Price: Members: ¢ 150,000 Incl. Dinner
Non members: ¢ 250,000 + 1 Drink
GGEA – Ghanaian-German Economic Association
Esseefo Street, Asylum Down, P.O. Box KA 9227, Accra, Ghana
Office time: Monday to Friday 9.00 to 17.00 hrs
Telephone: +233-21-257837, Fax: +233-21-257838
Mobile: +233-24-4715454
Email: info@ggea.net Website: www.ggea.net

Newsletter March 2006 Page 2 of 9
New Corporate Rates for GGEA Members
Golden Tulip Hotel Corp. Rate: Single U$ 126.-
Double U$ 141.-
Alisa Hotels Corp. Rate: Single U$ 115.-
Double U$ 140.-
Cresta Royale Hotel
Accra
La Palm Royal Beach
Hotel
Corp. Rate: Single U$ 110.-
Double U$ 135.-
Corp. Rate: Single U$ 100.-
Double: U$ 120.-
M-Plaza Hotel Corp. Rate: Single U$ 90.-
Double U$ 110.-
Novotel Hotel Accra Corp. Rate: Single U$ 104.-
Double U$ 124.-
Esthers Hotel Corp. Rate: Single U$ 85.-
Double U$ 90.-
Shangri-La Hotel Corp. Rate: Single U$ 64.-
Double U$ 74.- to 84.-
Elmina Beach Resort Corp. Rate: Single U$ 50.-
Double U$ 60.-
Busua Beach Resort Corp. Rate: Single U$ 45.-
Double U$ 55.-
Atlantic Computers PCs (Desktop and Notebook) and Servers 3%
Printers and All-in-Ones 3%
Networking devices (active and passive) 5%
Uninterruptible Power Supply units (UPS) 5%
Microsoft / Symantec / Autodesk / Sage Pastel software 3%
Ink and Toner cartridges 3%
Components, connection cables, other accessories 5%
Digital Projectors 3%
Display units (Monitors) (CRT / LCD) 3%
Atlantic Climate Control Fedders and VS split unit air conditioners 5%
Xpelair Extractor fans 5%
C. Woermann Corp. Rate: 5% Discount on all purchases
at the main office, Nsawam Road,
Avenor Junction
Deng Ltd.
Ecoband Networks
ILG Interline
Spilsbury’s Ltd.
Scancom Ltd.
Corporate Rates – see next page
Corp. Rate: 10% Discount on every
connectivity solution
Airfreight ex Hamburg (+ € 45.-per consignment from other
Airports)€ 1.80 (+ Fuel- and Sec.- Fee € 0.60) /kg (min. 45 kg)
Corp. Rate: 5% Discount on all purchases
GPRS registration 3 months free of charge

Newsletter March 2006 Page 3 of 9
Corporate Rates for GGEA Members
SDMO Diesel Generators
22 KVA 13,200 USD
33 KVA 14,200 USD
44 KVA 14,900 USD
66 KVA 18,450 USD
110KVA 24,300 USD
Range available: from 10KVA to 3000KVA.
Quality product conforming to EC standards,
manufactured in the EU by one of the largest genset
producers in the world. One Year Warranty. Maintenance
plans available.
More information available at:
HTTP://www.dengltd.com or HTTP://www.SDMO.com
Solar Lantern
• Provides up to 10Hrs. of light
• Charges from solar panel (included)
• Sealed battery included
• High efficiency, long life bulb included
• Solidly built to survive harsh tropical conditions
• Multiple illumination levels
• Microprocessor controlled
• One Year Warranty
800,000 cedis
BP Solar 10% discount on entire BP Solar Products Range 10% discount
Whatever your application, we can custom engineer a solar solution to suit your needs.
Web Hosting
Business
Plan
Personal
Plan
Domain
Registration
10 USD / month
(Full payment for one year
required in advance)
5 USD / Month
(Full payment for one year
required in advance)
.com, .net, .org, .info, .biz
1500 MB Storage, 30 GB/month Data
Transfer, 21 free subdomains, 20 MySQL
databases, 27 FTP Sub Accounts, Unlimited
Email accounts, Anti Spam and Antivirus
software, Web Statistics, 24/7 Online
support,
750 MB Storage, 15 GB/month Data
Transfer, 7 free subdomains, 10 MySQL
Databases, 9 FTP Sub Accounts, Unlimited
Email accounts, Anti Spam and Antivirus
software, Web Statistics, 24/7 Online
support
Only $ 5 / year with purchase of hosting plan.
** All sites hosted in state of the art IT center, in USA. 99.9% guaranteed uptime.
DENG Limited
Phone (021) 257-100, (021) 257-099 Email: info@dengltd.com
Fax (021) 222-276, (021) 233-778 Web: www.dengltd.com

Newsletter March 2006 Page 4 of 9
GGEA and Members News
Journey of our President to Germany
The major
highlight of
GGEA President
Stephen Antwi’s
5-day visit to
Germany from 1 st
of March to 5 th of
March 2006 was
to participate in
the Ghana Information
Day,
which was
hosted by Rohde
& Schwarz
GmbH in Munich on the 2 nd of March 2006. The
presence of the Ghanaian Minister for Trade and
Industry, The Honorable Alan Kyerematen gave the
event, which attracted about 23 participants from the
Munich area, a much needed swagger.
Mr. Johannes Hofmann of Rohde & Schwarz welcomed
the participants to the Ghana Information Day and
recounted his company’s fruitful cooperation with some
Ghanaian entities notably Ghana Television and the
Ministry of Defence. He expressed his companies desire
to maintain some type of presence in Ghana in the nottoo-distant
future.
Mr. Badoreck, the head of West and Central Africa
sections of the Afrika-Verein moderated the programme
and entreated the participants to be mindful of the
various economic opportunities that were present in
Ghana.
In his presentation the German Ambassador to Ghana,
H.E. Peter Linder reiterated the sound micro and macro
economic situation in Ghana and the fact that Ghana
recorded a GDP growth rate of 6% in 2005. He however
lamented on the slow pace of implementation of policies
and indicated that the Economic Community of West
African States (ECOWAS), which was formed to
integrate the economies of West Africa, should
concentrate on building economic bridges across those
states rather than always being perceived as only a
political institution.
The Ghanaian Ambassador to Germany H.E. Rowland
Alhassan generally identified the economic policies that
have been put in place by the Government of Ghana
under President Kufuor and invited prospective investors
to contact the Ghanaian Embassy in Berlin with specific
questions that they may have about Ghana.
Hon. Alan Kyerematen as the keynote speaker identified
a lot of investment opportunities in all the regions of
Ghana. Using PowerPoint presentation to buttress his
address, the minister painted a picture of Ghana as one
replete with investment and economic opportunities. He
touched on Free zones laws and various incentives that
are provided by the Ghana Investment Promotions
Council.
Dealing specifically with Energy and ICT, the minister
identified the West Africa Gas Pipeline as one with the
most prospects. The minister observed that
“Construction works on the West Africa Gas Pipeline will
be complete by the end of 2006”. He disclosed that once
Gas was in Ghana it would have to be transported to
industries and households. Constructing secondary
distribution channels will present tremendous business
opportunities to potential investors.
The minister also
invited the ICT
community to
invest in Ghana
since the returns
were very good
in Ghana.
Touching on the
role of the GGEA
in assisting German
business
interest in Ghana,
the President of the GGEA elaborated on new
service offers such as customized business trips for
prospective investors, where GGEA arranges the time
schedule and the selection of potential counterparts,
introduces the company to potential counterparts and a
staff member accompanies the client to business
meetings for advises and on demand interpretation and
translation services.
The GGEA will also through their network of
collaborators offer consulting service and market
analysis on demand as well as offering executive head
hunting services for professionals in Ghana to support
companies. In general the GGEA president espoused his
dream for Ghana to become a gateway for German
business interest in West Africa much in the same way
that Germany should become a gateway for Ghanaian
business interest in Europe.
Mr. Heinz Rittman who had lead a team of contractors to
Ghana in February 2006 added a spice to the
programme as he brought a reality check to the whole
presentation. Since he had just paid a fact-finding tour to
Ghana, he had first hand information about the country.
In a nutshell he stated that he had a great experience in
Ghana as compared to other African countries that he
had visited and had good interactions with Ghanaian
contractors. He was very positive that members of the
delegation that visited Ghana would definitely partner up
with some of their Ghanaian contractors very soon.
The GGEA president also visited the Africa Association
in Hamburg to increase the intensity of our existing
partnership arrangement and also explore further cooperative
ventures.
The GGEA would like to thank Mr. Carlo Hey of the GTZ-
PPS for sponsoring the entire trip and for his personal
commitment to the GGEA. Furthermore the Africa
Association, our partners in Germany, needs a lot of
commendation for organizing the Ghana Information Day
and Kudos to Rohde and Schwarz for hosting the event.

Newsletter March 2006 Page 5 of 9
WABA still waiting for its Air
Carrier License
HELOG Lufttransport is a
medium-sized company which
offers all kinds of air transport and
international air services,
including humanitarian aid as well
as medevac (medical evacuation)
flights.
In Ghana a charity organisation
called WARA, West African
Rescue Association, was founded
by HELOG in the year 2004
operating through his partner company WABA Ltd., a
member of GGEA. HELOG, the mother company of
WARA and WABA, sent a rescue helicopter type BO 105
to Accra to build up a medical air rescue service in the
country. HELOG also deployed well trained paramedics
from Europe to Ghana to establish a modern rescue
system. WABA today offers air as well as ground
ambulance services to its members.
However, WABA (and thus HELOG) had to face serious
problems in Ghana building up this new rescue
infrastructure.
ACL = Air Carrier Licence and night flight permission
In April 2004 WABA handed in the application for an
ACL (Air Carrier Licence) for medevac and commercial
flights to the GCAA (Ghana Civil Aviation Authority).
Several moves have been made, including interventions
by GGEA and others to support the issuing of the ACL.
But now, 2 years later, WABA still does NOT have an
ACL at least for the medevac flights. Thus WABA can
only operate his rescue flights via partners but not on its
own ACL. Other equivalent solutions were also not
Mr. Zagel from Helog explaining the helicopter displayed
at the inauguration of WARA in January 2005
accepted. HELOG is the holder of
an international AOC (Air Operator
Certificate) in Sierra Leone (over
there issued within 6 weeks after
the application). Within the
Yamoussoukro Agreement it
should be possible to use this AOC
from Sierra Leone for operations in
Ghana, which was rejected by the
authorities as well.
Also the permission to operate
night flights was refused, making it
impossible to offer a 24 hours
rescue service.
Extended rescue concept supported by Global Compact
but not by the Ghanaian authorities
The whole concept was to introduce an additional airambulance
service, which can offer great synergy effects
with the National Ambulance service.
HELOG’ s rescue concept for Ghana was well received
and recommended by the United Nations Global
Compact Initiative who supported the project.
WABA planned to establish a Paramedic school in Accra
to train urgently needed paramedics in the country itself.
Furthermore WABA planned to give the fire services
opportunities to get efficient first aid training within this
new paramedic school.
Unfortunately all these concepts were not supported by
the relevant Ghanaian authorities and ministries.
When Mrs. Krause-Nehring of HELOG voiced out the
company’s plight over the unfortunate developments at
the Ghana Info Day in Munich, the Hon. Minister for
Trade & Industry stated that he would personally move
into further investigations about the project and the
impediments on its way after his return to Ghana.
LaKe Consult Ltd.
Quality IT Consulting
Former Managing Director of Atlantic Training,
Kevin Stepper, has founded his own IT
Consulting Company ‘LaKe Consult’. LaKe
Consult is a consulting firm offering platform
independent Information Technology Consulting,
Support, and Training in the West African sub
region. LaKe was incorporated in 2005 and is based in
Accra, Ghana. With its Ghanaian – German
Management, LaKe maintains strong relationships to
Germany and has access to resources from partner
companies and Information Technology experts in
Germany and Ghana.
Key Staff of LaKe Consult are:
Linda Aboagye, Managing Director, taking care of all the
non-technical aspects at LaKe Consult Ltd. Mrs.
Aboagye is a Microsoft Certified Professional.
Kevin Stepper, Managing Partner, MSc Administration
and Management ( University of Konstanz, Germany ),
has more than a decade of experience in implementing
IT solutions and training in West Africa and Germany. He
is a Certified Novell Engineer, a Certified Linux Engineer,
a Microsoft Certified Engineer, a Novell and Microsoft
Certified Trainer and a Cisco Certified Network
Associate. Mr. Stepper holds the final responsibility for
all solutions, support contracts and trainings
implemented and maintained by LaKe.
Klaus Seiler, Senior Consultant, MSc Quality
Management ( University of Vienna, Austria ), is
an experienced consultant for the
implementation of Quality Management Systems
based on ISO 9001:2000. Mr. Seiler has
successfully trained and certified numerous
organizations and companies across Europe. For
our clients, Mr. Seiler defines and implements changes
required at the organizational level and enforces quality
management procedures throughout the consulting
process.
Among its various IT services LaKe offers:
• Novell Solutions, Products and Training
• Accounting Solutions
• ERM und CRM solutions (Enterprise Resource
Management / Customer Relationship Management)
• Service Level Agreements (Outsourcing of IT
services)
• Communication Solutions
• Business Continuance Solutions
• Security Solutions
• IT Documentation Services
More Information about LaKe Consult Ltd. on
www.lake-consult.com

Newsletter March 2006 Page 6 of 9
Members of GGEA
C. WOERMANN
(GHANA) LIMITED
was re-established in April
1954 in Accra and is today
most likely the oldest German
company still operating in
Ghana. Our firm is fully owned
by C. WOERMANN GMBH &
CO. KG in Hamburg /
Germany, a company that was
established in 1837 as a trading company operating
their own vessels. The shipping line was, however, sold
in 1917 and the company has since then concentrated
on their trading activities. Besides Ghana the C.
WOERMANN Group of Companies is active with its own
investments in Nigeria, Sudan and since last year also in
Angola.
From the typical commodity trade of the 1950’s C.
WOERMANN (GHANA)
LIMITED developed and
transformed into a technical
trading house strongly active in
the agricultural and timber
industry, construction as well
as transport industry among
others. Over the years we
supported
Ghanaian
entrepreneurs in setting up
their own factories by providing
expertise, supply and financing
Carsten Duewer,
of machinery and other related Managing Director
equipment.
The company’s main office is located in Accra, a branch
is operated in Kumasi. Large warehousing facilities are
available in both Accra and Kumasi in order to provide
for timely supplies as and when required. Our product
groups are managed by well trained and experienced
sales managers. Country-wide distribution is guaranteed
through a local dealer network, however, we also
provide for end-user service.
Today we are representing numerous reputable
manufacturers like
• STIHL (agricultural machines, cleaning equipment,
construction machines, chainsaw etc.)
• RÜGGEBERG Abrasives
• MICHELIN, CONTINENTAL (tyres for cars, public
and heavy duty transport, construction machines
and mining equipment)
• BOSCH (professional power tools)
• MAHLE Pistons, MONARK Injection, HOLSET
and KKK Turbochargers; JOST Couplings, LuK
Clutches, BOGE Shock Absorbers (truck/trailer
components)
• GESAN Generating Sets
• ABAC Compressors
and many more.
Our current staff strength exceeds 50 employees. We
are continuously looking into new and innovative
products and along with further investments into our
Ghanaian establishment we confidently keep building for
the future.
More information about C. Woermann (Ghana) Limited:
www.woermann-ghana.com
National/Economic News
FDI Up Over 8 Percent in 2005
Foreign direct investment (FDI) into Ghana increased to
8.4 percent in 2005, both in terms of number of projects
and quantums of finance, reports Business & Financial
Times. Building and construction attracted USD89.92
million, while the manufacturing sector saw new
investment commitments of USD37.30 million. (B&FT)
Ghana, Donors to Fund Private Business
Development
Government officials, donors, and leading private
businesses have agreed to set up a USD31.9 million reform
package aimed at helping develop a stronger
private sector in the country. In addition to injecting
funds into result-oriented business activities, the effort,
led by the Ministry of Private Sector Development and
PSIs, aims to eliminate all unfriendly business practices
in the country through a systematic program over five
years. (B&FT)
Diversify for a Stronger
Economy – IMF
The International Monetary Fund (IMF)
has called on government to diversify
the economy by developing other
commodities to serve as alternative
sources of income. Currently, the Ghanaian economy is
largely dependent on cocoa and gold, two commodities
that are highly susceptible to price fluctuations on the
global market. “Ghana could seriously look at
manganese and bauxite apart from gold, and develop
them on a large scale so that when there is a drop in the
prices of gold, those two could cushion the economy,”
said Thomas Scholar, executive director of the IMF.

Newsletter March 2006 Page 7 of 9
Banks Balk on Lowering Lending Rates
Commercial banks throughout the country are still
lending at the high rate of 32 percent, despite cuts in the
prime rate by the Central Bank. So far, less than a
quarter of the nation’s 23 licensed commercial banks
have responded to the Central Bank’s move. For now,
Ecobank, Ghana Commercial Bank, Prudential Bank
and the National Investment Bank were among those to
make the downward adjustment. (B&FT)
Meanwhile, Corporate Initiative Ghana hopes this year’s
Ghana Banking Awards will highlight the industry’s lack
of competitiveness and inspire more competition in the
sector. This year’s theme, “An Efficient Banking Sector
for Competitive Advantage in the Sub-Region,” is
designed to foster competition, raise the level of service
efficiency, and ensure product innovation, said Mr.
Afotey Odarteifio, Executive Secretary of Corporate
Initiative Ghana. “We are expecting nothing less than a
stronger competition which is more incisive and
purposeful than ever,” he said. (B&FT)
Russia May Cancel Africa’s Debt
Russia may soon write off debts owed it by 16 of the
world’s poorest countries, according to Alexei Krudin,
the Russian finance minister. Russia is considering
canceling USD688 million in debts owed it by such
countries as Benin, Tanzania and Zambia. The main
consideration in writing off the debt would be the
countries’ commitment to fulfilling certain requirements
regarding transparency of finances, budget expenditures
and poverty reduction, said Krudin. (Daily Graphic)
Business/Industry News
Westel Wants Strategic Investor
Workers at Western Telecommunications Limited
(Westel) are appealing to the government to find a
strategic investor to help put the company back on solid
financial footing. Some insiders are speculating that
MTN may be interested in acquiring a stake in the
struggling company. (B&FT)
Lehman Acquires Heinz Seafood Business
Lehman Merchant Banking has announced that it will
acquire Heinz’s European Seafood business for 425
million euros. Pioneer Food Cannery Limited, which
produces Starkist Tuna and other products, is one
European Seafood’s top processing facilities. (B&FT)
Thermal Plant Back on Track
A breakthrough in negotiations has been reached
among the major investors in the Aboadze Thermal
Plant, nation’s first thermal energy project, allowing the
investors to access part of a USD215 million credit from
the International Finance Corporation of the World Bank
Group. The initial phase of the project has been
completed, but the installation of heat recovery steam
generators and steam turbines have been held up,
pending the availability of funds. (B&FT)
Rice Becomes Ghana’s Top Food Import
Ghana imported USD431 million worth of rice between
2000 and 2004, making it the nation’s number one food
import. Government efforts in 2001 to encourage
Ghanaians to consume local rice resulted in a drop in
rice imports from USD71.1 million in 2001 to USD53.4
million in 2002, but the campaign has since been
abandoned. While Ghana is only 35 percent selfsufficient
in rice production, local farmers are struggling
to find a market for the 150,000 tonnes of rice they
produce each year. (B&FT)
Agencies Call for New Divestiture Policy
The State Enterprises Commission (SEC) and
Divestiture Implementation Committee (DIC) have jointly
called for a comprehensive policy on divestiture of state
enterprises. The two have called for a new policy to
make the process more transparent. Companies such as
Ghana Oil Plantation, PSC Shipyard, GTP and Ghana
Agro Food Company are expected to be divested this
year, but because the current divestiture guidelines do
not allow government to offload its shares on the stock
exchange, most interested investors do not have the
opportunity to buy into those companies. (B&FT)
Road Fund Takes in Over One Trillion Cedis
The Ghana Road Fund collected over 1 trillion cedis last
year, surpassing its target b y 573 million cedis. The
improved revenue was made possible by an increase in
the fuel levy rate from 400 cedis to 600 cedis per litre.
(B&FT)
Microsoft Selects Ghana as Regional Hub
Microsoft has
selected Ghana to be
its hub for the West
Africa sub-region
because of the
country’s improved
infrastructure for
information and
communications
technology. The
government’s commitment to develop the industry was
also a defining reason, said Gerald Ilukwe, the General
Manager of Microsoft in charge of Nigeria and Ghana.
“Microsoft would like to be part of the move to make
Ghana take its position on the information
superhighway,” he said. (Daily Graphic)
Wood Industry Suffers from Lack of Resources,
Expertise
High production costs relative to other African nations
has made Ghana’s wood industry less competitive in the
African market, said Robert Benjamin Wilson, public
relations manager of the Forestry Commission. These
higher costs are due to obsolete machinery and a
shortage of expertise in such areas as wood finishing.
As a result, Ghana has had difficulty producing products
that meet international standards. (B&FT)

Newsletter March 2006 Page 8 of 9
VALCO Not Cause of Power Failure
The Volta River Authority (VRA) recently
announced that VALCO, the nation’s
aluminium smelter, is not the cause of
recent power outages. Instead, the VRA
laid the blame on its aging equipment. The
Volta River Authority needs billions of
dollars to overhaul its obsolete power
generating equipment and curb epidemic power
shortages and outages in the country. However,
convincing stakeholders and government agencies that
such an overhaul is needed has proven difficult,
according to the Business & Financial Times.
“Tigo” is the New Buzz for Millicom Ghana
Millicom Ghana Limited has launched its new
brand name, “tigo,” to replace the existing Mobitel
and Buzz GSM brand name. The new brand comes
with enhanced services such as multimedia
messaging and general packet radio service. The
company, which is a subsidiary of Millicom
International Cellular, was the operator of global
cellular services. “The evolution of Mobitel and the Buzz
GSM brand to ‘tigo’ is not just a change of brand name
or repositioning of Buzz GSM,” said Managing Director
Gareth Townley, “but a whole new cellular experience.”
(Daily Graphic)
From Munich to Mauritius
Merkel's First 100 Days – A
Review
“Popular at home and lauded abroad,
German Chancellor Angela Merkel has
made a remarkable start in her first
100 days in office,” writes Marc Young
in Der Spiegel Online. She’s “wowed”
U.S. President George Bush,
“charmed” French President Jacques
Chirac, and “deftly managed” a visit
with Russian President Vladimir Putin,
proving “a degree of mastery of foreign
policy in just a few weeks that Schröder couldn’t manage
over seven whole years.”
Surveys show that 75 percent of Germans now consider
Merkel a capable leader, while 85 percent support how
she’s doing on the job – striking numbers considering
that only 27 percent of voters picked her conservative
Christian Democrats in last fall’s election. But Merkel has
carefully avoided tackling controversial issues that could
either split the coalition or turn public opinion against her.
“You can’t do the work of four years in a hundred days,”
said Merkel in a radio interview this week.
Merkel could extend her
honeymoon with the German
people if she can deliver the
cuts in unemployment that her
government has promised.
While the unadjusted rate of
unemployment for February
showed a 12 percent increase
to 5.05 million, when adjusted
for seasonal swings, the
number of unemployed people
fell roughly 5,000 to 4.695
million. This decrease was less
than the fall of 20,000 expected
by economists.
Meanwhile, business confidence in Germany is at a 14-
year high and consumers are feeling increasingly
optimistic. Still, experts are wary of being overly
optimistic, cautioning that the current "feel-good"
sentiment has yet to be reflected in real economic data.
"If we are seeing a recovery in Germany it is not a very
strong one," said Adam Posen, an economist at the
Institute for International Economics in Washington.
"Merkel will ultimately be judged on whether she can
push through reforms and deliver on the economy."
(Deutsche Welle)
World Cup Security: Watching Soccer in a War
Zone
Security is a major concern during international sporting
events, but are the Germans going overboard?
Thousands of police will be on duty, but now, soldiers
have been added to the mix as well, reports Spiegel
Online. Some 2,000 soldiers from Germany's Bund army
will be assisting local authorities in providing medical
care, transportation, logistical assistance and protection
against biological and chemical weapons.
Government officials are worried about the possibility of a
terrorist attack and the threat of soccer hooligans. Tens
of thousands of police across Germany have been told
they may not go on vacation during the month-long
tournament. At the same time, the police are updating
their lists of known hooligans and are coordinating with
police from other countries doing the same. Already
some 2,400
violent fans have
been forbidden
from attending
World Cup
games and
7,000 others are
being subjected
to additional
scrutiny.
Yet despite the very real dangers, there has been no
shortage of vocal criticism against the extreme attention
on security. German Interior Minister Wolfgang Schäuble
of the Christian Democratic Union has been intensely
criticized by political parties across the spectrum for
supporting an even greater military presence within
Germany during the tournament. He would like to see
soldiers protecting the stadiums. (Spiegel online)

Newsletter March 2006 Page 9 of 9
Lufthansa Wins Fuel Management Award
Lufthansa has received
a top award
from the Armbrust
Aviation Group for
having the best fuel
management department
in the aviation
industry. Lufthansa
was ranked top in six
of eight categories,
including “most innovative,” “most price conscious,” and
“best staff.” Helmut Fredrich, General Manager for Fuel
at Lufthansa: “Given the drastic increase in the price of
oil and kerosene, now more than ever we need an
integrated and professional approach to fuel
management.” (B&FT)
German Trade Surplus Hits Record
Germany’s trade surplus reached a record high in 2005,
underscoring the nation’s strength as an exporter. But
with foreign sales down in December, analysts caution
that it is too soon to say the German economy is on the
road to full recovery. “On the strength of the data,” said
HVB’s Alexander Koch, “it’s obvious we won’t see whitehot
growth this year.” (B&FT)
Euro Rates Up on Inflation Fears
The European Central Bank has raised its key interest
rate to 2.5 percent, in response to a strengthening
eurozone economy and fears of growing inflation. The
quarter-point rise from 2.25 percent is the second in four
months, after the bank had held rates steady at 2 percent
for more than two years. Last month, ECB President
Jean-Claude Trichet said the bank would remain
"vigilant" on inflationary pressures. He said the ECB had
to ensure economic growth did not affect price stability.
Persistently high oil prices have posed the most
significant threat to inflation. The eurozone's economic
outlook for 2006 is mixed, but some of its largest
economies, including France and Germany, are expected
to gain momentum, with reports indicating that business
and consumer confidence is running high. (BBC news)
Lithuania hopes to join euro in 2007
Lithuania is hoping to win early approval from the
European Union to join the euro, clearing the way for it
and Slovenia to become the newest members of the
single currency area on January 1, 2007. Zigmantas
Balcytis, Lithuania's finance minister, hopes the EU will
assess whether the Baltic state meets the membership
rules in the early summer.
Standards Barriers May Replace Trade Barriers
While traditional barriers to African exports such as tariffs
and quotas are beginning to fall away, they could be
replaced by regulations that bar products from entering if
they do not meet certain standards. These obstacles
include measures aimed at protecting consumers from
everyday food hazards. “High tariffs remain a significant
barrier,” says South African Finance Minister Trevor
Manuel, “but non-tariff barriers such as arbitrarily
imposed phytosanitary rules further limit goods.” (B&FT)
East Africa Opening Up as Potential Mining
“Gold Mine”
East Africa is emerging as the new frontier for mineral
exploration, according to industry experts meeting at a
global mining conference in Cape Town, South Africa.
Companies are exploring for minerals in such countries
as Uganda, Kenya, Rwanda, and Burundi, traditionally
non-mining areas. Many of these countries were
previously under-explored, as companies targeted those
known to have large deposits. (B&FT)
Drug Use in Africa on the Rise
Illegal drug cultivation, trafficking and abuse are on the
rise in Africa, reports the United Nations. Nigerian gangs
are taking over much of worldwide heroin smuggling,
whilst a Ghanaian MP, Eric Amoateng, is currently
awaiting trial in New York for allegedly smuggling over
USD6 million worth of heroin into the United States. In
Zanzibar 8 percent of young people are heroin addicts,
and in South Africa one-third of teenagers experiment
with drugs. (BBC)
Fresh Water Supplies Down in Africa
Africa’s freshwater lakes are experiencing a dramatic
decline in water levels. The most important freshwater
reserves in Africa could be reduced to inhospitable bogs
or even completely dry out within a few decades,
according to a report from the United Nations
Environment Programme (UNEP). In its "Atlas of African
Lakes" the UNEP has published satellite images of
Africa's lakes from decades ago alongside pictures of the
lakes as they stand today. The images are dramatic: The
water levels of many of Africa's lakes have dropped,
some drastically, and the supply of clean drinking water
to an exploding population is being endangered. The
rapid changes that are sweeping Africa's lakes are due to
a combination of human activities and climate change.
Africa has an estimated 677 lakes, holding 30,000 cubic
kilometers of water, the largest volume on any continent.
Close to 90 percent of water in Africa is used in
agriculture, of which 40 to 60 percent is lost to seepage
and evaporation,
according
to the UNEP.
The level of
Lake Victoria,
the largest body
of water in
Africa, is one
meter lower
than it was 10
years ago, while
Lake Chad has
been reduced to
one tenth of its
original size.
Meanwhile Lake
Songor in
Ghana has also seen its size decrease dramatically -- in
its case due to intensive salt production and the resultant
evaporation. The potential for disaster is evident as an
ever-increasing population faces a scramble for this
dwindling resource.