May 2010 - Ghanaian-German Economic Association

NEWSLETTER No. 59 May 2010 Page 1 of 13
Dear Members, Dear Clients,
The recent solar energy mission embarked upon by the
GGEA in collaboration with the BSW Solar Germany
and under the sponsorship of the German Federal
Ministry of Economics and Technology has brought into
the lime light, the subject of renewable energy and the
need for Ghana to utilize renewable energy sources
especially solar energy to augment our energy portfolio.
If Germany, with its cloudy weather patterns, has
adopted solar energy to boost her energy supplies, then
it makes perfect sense that Ghana where solar radiation
is optimal, should be championing this course.
Empirical evidence has shown that in Germany it was
the adoption of the law that specified the feed-in tariff
and also mandated utility companies to purchase
electricity produced from renewable energy sources that
triggered the widespread adoption and usage of solar
energy.
It was therefore refreshing that during the Ghana
Energy Day that was held in Hamburg on the 3 rd of May
this year, Dr. Oteng Adjei, the Minister for Energy
assured the participants who were mostly German
Investors with a bias towards the energy sector that
Ghana’s Renewable Energy bill, which has been
lurching around for about 3 years, was before Cabinet
and that in all likelihood, it will be promulgated into law
before the end of the year.
This represents positive news for players in the
renewable energy sector. However as has been said a
countless times over, the sweetness of the pudding is in
the eating!
We are waiting for the passage of the renewable energy
law because it could potentially unleash a new wave of
interest in the sector and also lead to a situation where
Ghanaians will not concentrate all their attention on the
emerging oil and gas subsectors in the energy mix.
Stephen Antwi
President of the GGEA
GGEA gets new telephone lines
The GGEA would like to announce that we have new
telephone lines:
• +233 (0) 30 7011206 / 7
• +233 (0) 26 3007588
GGEA MEMBER NEWS
Allianz to provide high quality service
Allianz Insurance Ghana Limited, a subsidiary of the Allianz
Group in German, has entered the Ghanaian market with
the firm aim of providing high quality and prompt customer
service delivery.
The company is investing more than twice the statutory
minimum capital required by the National Insurance
Commission (NIC). Its solvency ratio has a firm base
founded on a high quality investment portfolio and
conservative risk management approach. The company
underwrites all general insurance business, including motor
insurance, oil and gas insurance, fire and accidents, bond,
household, marine cargo, plant and machinery, engineering
and goods in transit insurance. Allianz Ghana, which has
started doing business in the country, was launched in
Accra March. It is the 15 th subsidiary of the Allianz Group in
Africa. The group is already operating in Togo, Benin, Cote
d’Ivoire, the Central African Republic, Senegal, Mali,
Burkina Faso and Madagascar.
According to the Managing Director of the company, Mr
Patrick Prado, the policy and programmes of the
government to attract foreign investment, political stability
Ghana’s economic prospects and track record in the area
of democracy were among key factors that attracted the
company into the country. Daily Graphic
.
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: +233-30-7011206 / 7; 21-257837, Fax: +233-21-257838
Mobile: +233-26-3007588; 24-4715454
Email: info@ggea.net Website: www.ggea.net

Newsletter May 2010 Page 2 of 13
GIPC records GHc 263.43 million for
first quarter of 2010
The Ghana Investment Promotion Centre (GIPC), on
Tuesday said that it has recorded a significant gain
during the first quarter of 2010 financial year with
estimated value of GH¢ 263.42 million. The GIPC
during the first quarter of this year, registered a total of
108 new projects with an increase of 208.57 percent
compared to 35 registered projects in the first quarter of
2009, Mr. George Aboagye, Chief Executive of the
GIPC said. Addressing at a press conference in Accra,
Mr. Aboagye said the figures for the first quarter
represented a significant jump as compared to last year.
He said the Foreign Direct Investment (FDI) component
of the estimated value of the projects registered during
the first quarter under review was GH¢ 225.88 million
while the local currency component amounted to GH¢
37.34 million. Mr. Aboagye said the GIPC was optimistic
the growth of the FDI for this year would push the
earnings up to USD 161.34 million compared to USD
16.53 million, earned during the first quarter of last year.
He said that to end the agitations between locals and
foreigners within the country's trade sector, the GIPC
earlier had inaugurated a National Task Force to
monitor the activities of foreigners to ensure that
Ghana's investment regulations were respected and
complied with. Mr. Aboagye said the National Task
Force had been working effectively resulting in the
foreigners regularizing their operations, a situation
which had stemmed the agitations of the Ghanaian
traders.
He said to ensure effective monitoring of the activities of
the foreign investors and traders, the Central and
Western Regional Task Force would be inaugurated in
Cape Coast and Takoradi on May 13 and 14, 2010
respectivelly. The Task Force would comprise
representatives from the Customs Excise and
Prevention (CEPS), Ghana Immigration Service (GIS),
Social Security and National Insurance Trust (SSNIT),
Internal Revenue Service (IRS), VAT Service, Ghana
Union of Traders Association (GUTA), the Ministry of
Trade and Industry (MOTI) and the Registrar General's
Department and GIPC. He said the Center launched the
"Ghana club 100 Awards" in February this year which
would now be combined with the "Invest in Ghana"
seminar. It is an annual event to honour the top 100
companies in the corporate excellence under the theme
"Enhancing partnership between domestic and foreign
investment for economic growth." The awards will be given
to ten sector of the economy, including Agriculture and
Agribusiness, Financial Services, Petroleum and Mining
Services, Tourism Health among others.Invest in Ghana
Seminar is organised in collaboration with the Swiss
Agency for investment (OSEC).
Mr. Aboagye said there were discussions with the Cargill
S.A., a multinational producer and marketer of agricultural,
financial and industrial products in Switzerland on the
establishment of a 450,000 metric tonne sugar processing
plant in Ghana. "The productive capacity of the refinery is
expected to increase to 650,000 metric tonnes per annum
with an estimated value of the project is US$ 100million.
www.ghanaweb.com
Charles Oduro appointed MD KEK
Insurance Brokers
The Board of KEK Insurance Brokers Limited,
the nation’s biggest brokerage firm, has
announced the appointment of Mr Charles
Oduro, a Chartered Insurance Practitioner (ACII), as acting
Managing Director of the company. Mr Oduro’s
appointment follows the death of the founder and managing
director, Mr Kwesi Essel Koomson. Until Mr Oduro’s
elevation, he was the general manager of the company.
The new managing director has about 16 years of
insurance brokerage experience, rising from the ranks after
graduation from the University of Ghana Business School,
Legon, with a BSc (Administration) Insurance Option.
Additionally, he holds a Postgraduate Diploma in Marketing
of Services from the Maastricht School of Management,
The Netherlands. He is also a part-time Lecturer at the
Ghana Insurance College and a Board-member of the
Union Rural Bank. Business & Financial Times

Newsletter May 2010 Page 3 of 13
TIGO prepares students for job market
In keeping with updating the acknowledge
base of students and creating opportunities
for mentoring, coaching and networking, mobile network
operator Tigo has held a campus storm session at the
Sunyani Polytechnic auditorium under the theme,
‘Building a sure future today.’ Popularly called Tigo
Campus Storm, the quarterly programmed introduced
last year, is aimed at equipping students with skills to
reach beyond themselves in attaining academic laurels,
preparing them for the job market, and financial
investment among others.
So far, students of the University of Ghana, the Kwame
Nkrumah University of Science and Technology
University of Cape Coast and the Institute of
Professional studies have benefited from these skills
and knowledge acquisition sessions. Participants for the
Sunyani session will include students of Sunyani
Polytechnic, Catholic University, Nurses Training
College as well as some members of the general public.
Some of the topics discussed included ‘Personal
Branding,’ ‘Wealth Creation’ and My Course, My
Future.’ Daily Graphic
GIPC intensifies move to protect local
investors
The Ghana Investment Promotion Center (GIPC) has
intensified its move to protect the investments of
indigenous Ghanaians operating in the country.
Consequently, the Centre has inaugurated two
additional task forces in the Central and Western
regions to monitor the activities of foreign investors
whose actions were against the rules and regulations
governing their operations.
The Chief Executive Officer of the Centre, Mr George
Aboagye, made this known at a news conference in
Accra to announce the first quarter investment results
for the country.
Despite the global financial crises, the country recorded
an impressive increase in foreign direct investments
from USD 16.53 million recorded in the same period last
year. The figure now stands at USD 161.34 at the close
of this quarter of this year. This is the result of the
registration of 108 new projects. China maintained its
position as the top in terms of FDI flows into the country
in terms of the number of projects while South Africa
ranked top in terms of total estimated value of projects.
Daily Graphic
MTN begins customer registration exercise
Telecommunications company, MTN, has
launched a nationwide sensitisation exercise
to raise public awareness about its subscriber registration.
The exercise is in compliance with the recent directive by
the National Communication Authority (NCA) to all
telecommunications operators in Ghana to register all
existing subscribers by June 11, 2011. Operators are also
expected to register all new subscribers on their network
from July 1, 2010. Launching the programme, Mrs
Mawuena Trebarh, Corporate Services Executive of MTN,
said MTN over the years had demonstrated its commitment
to partnering the government and the regulatory agencies
to ensure that the company played its role as an industry
leader in the development of the country. Mr Ebenezer
Asante, Sales and Distribution Executive of MTN, said the
registration exercise would focus on accessibility, and
ensure that registration centres were in close proximity to
subscribers. Daily Graphic
The GGEA is pleased to
announce that Lufthansa German
Airlines offers discounted rates to GGEA members. All
GGEA members are reminded to take up this attractive
offer. Please announce your GGEA membership status at
the Lufthansa desk.
Contact Mrs. Babette Melling on +233 (0) 03 243896 or
babette.atane@dlh.de for more details
Lufthansa, there’s no better way to fly.
RECENT EVENTS
Solar Energy Trade Mission- 3 rd to 8 h May 2010
A delegation of Ghanaian business
Executives has returned from a one-week
Solar Energy Trade mission to Germany
which is acclaimed as the worldwide leader in renewable
energy production. The mission enabled the executives to
visit solar energy companies and explored partnership
opportunities with industry leaders such as Energiebau,
SMA, Wagner & Co, Juwi etc.
Most of the German companies expressed
their desire to enter the Ghanaian market
where, compared to Germany, solar radiation
is very high. They are, however, awaiting the passage of
the renewable energy law that will set out policy guidelines
and address operational issues.
Participating companies include: Techno-
Crete Ltd., Energiebau Sun Ergy Ltd.,
Stom Engineering Ltd., Fine Prints Ltd.,

Newsletter May 2010 Page 4 of 13
Electrofax Engineering Services (GH) Ltd., Kay-kay
Projects Ltd., African Legacy Finance Ltd., Alnort Ltd.,
Tradeworks Ltd.,and Energy Commission.
UPCOMING EVENTS
Interschutz 2010 - Leipzig, Germany
(07 th – 12 th June 2010)
International Exhibition for Rescue, Fire Prevention,
Disaster Relief, Safety and Security
Steady growth, exhibitors and innovations from all over
the world, and a large international public - these are
what make INTERSCHUTZ so special. And this is why,
for many years now, it has been the world's leading
trade fair for rescue services, fire prevention, disaster
relief, safety and security. The unique mix of
commercial and non-commercial exhibitors has played
a major part in the success of the show. While
manufacturers showcase their latest products and
services, the emergency services are here to
demonstrate how these are actually used, from simple
tools to complex medical equipment and modern
information technology. It will be co-located with the
28th German Fire fighting Convention.
www.interschutz.de
IHK Frankfurt am Main
Börsenplatz 4
60313 Frankfurt am Main
Fon: +49 69 2197-1217
Fax: +49 69 2197-1541
mailto:k.knight@frankfurt-main.ihk.de
Supported by:
Exhibit at Tendence 2010 – promote
Ghanaian handicrafts
Tendence at Frankfurt is the most important consumergoods
event and the leading design platform for the second
half of the year. It is aimed primarily at design-oriented
dealers and the high-grade accessories and gift-article
trade.
GGEA invites Ghanaian exporters of handicraft products to
exhibit at Tendence 2010 to help promote the Ghanaian
products on the international market.
Ticket Price: EUR 41.00 (Contact the GGEA Office for
processes, purchase of tickets and further information)
Ghana Business Day, 22nd June 2010 at the
Frankfurt am Main Chamber of Industry and
Commerce
On 22nd June 2010 a Ghana Business Day will take
place in Frankfurt, Germany. The event is organized by
Afrika-Verein, the German-African Business
Association, together with the Frankfurt am Main
Chamber of Industry and Commerce and in cooperation
with the Ghanaian-German Economic
Association.
The conference intends to encourage German
companies to further enhancement of economic
cooperation with Ghanaian partners by providing the
German business community with first hand information
in the promising sectors.
The Republic of Ghana constitutes an attractive
business environment as it ranks among the most
politically stable countries on the African continent. The
World Bank repeatedly attributed Ghana a top 10
reformer status in its “Doing Business” reports. The
future economic outlook is very promising.
GGEA invites especially its German members to
participate in the event in Frankfurt. For further
information please contact the Chamber of Industry and
Commerce in Frankfurt:

Newsletter May 2010 Page 5 of 13
Dates for Tendence: 27 – 31 August 2010
Venue: Frankfurt, Germany
Deadline for Exhibitor Application: 31 May 2010.
Contact the GGEA Office for further information.
NATIONAL / ECONOMIC NEWS
Ghana’s gross international reserves grow by 4.4
per cent
The Gross International Reserves position of the Bank
of Ghana, which increased to USD 3.2 billion dollars in
December 2009, grew further by 4.4 per cent in the first
quarter of 2010 to USD 3.3 billion. The growth means
that Ghana now has three months cover of imports of
goods and services as against the gross reserves of
USD 1.8 billion or 1.8 months of import cover recorded
in March 2009. Addressing a news conference in Accra,
the Governor of Bank of Ghana, Mr Kwesi Amisah-
Arthur, said the favourable external environment
continued to support the stability in the foreign
exchange market. The normal exchange rate of the cedi
against the dollar, he said, revealed that the cedi
depreciated on year-on-year terms by only 2.5 per cent
compared with 29.2 per cent a year earlier “For the
period January–March 2010, however, the cedi
appreciated by 0.7 per cent against the dollar. This
compares with a depreciation of 11.9 per cent over the
same period in 2009,” he said. The Ghanaian Times
Russia expresses interest in Ghana’s
oil industry
The Russian Ambassador to Ghana, Mr Vladimir
Barbin, has expressed Russia’s interest to invest in
Ghana’s emerging oil industry. He said Russia’s
investment could boost Ghana’s economic fortunes
through job creation, adding that it would also enhance
relationship between the two countries. Mr Barbin made
this known when he paid a familiarisation visit to the
offices of Graphic Communications Group Limited
(GCGL) in Accra. He was accompanied by Mr Igor
Degtyarev, the Minister Counselor of the Russian
Embassy. The visit was also aimed at exploring
opportunities to strengthen the relationship between
GCGL and Russian media houses, especially in sharing
information and experiences. Mr Barbin said journalists
in the two countries should forge closer working
relationship and establish effective channels of
communication. Daily Graphic
Cocoa Purchases Fall 7.8 per cent
Cocoa purchases in Ghana, the world’s
second-biggest producer of the beans, fell 7.8 per cent
in the first 24 weeks of the season, an industry official
with access to the information has said. The official who
declined to be identified because the figures are
confidential, said private buyers who purchased beans from
farmers on behalf of Ghana Cocoa Board bought 518,304
metric tonnes of cocoa in the season to April 1, compared
with 562,327 tonnes in the same period a year earlier,
according to the data. Purchases during the week ending
April 1 declined to 1,837 tonnes from 1,854 tonnes the
previous week. Ghana’s neighbour Cote d’voire, is the
world’s top producer of the chocolate ingredient. The
Ghanaian Times
Ghana, Brazil Sign MOU
Ghana has signed a memorandum of
understanding (MOU) with Brazil on
laboratory procedures in biotechnology and genetic
resources management on agro-biodiversity of cassava.
The project involves the scientific and technological ways to
cultivate cassava on a large scale. The new varieties are
resistant to major pests and diseases, like cassava mosaic.
The Minister for Foreign Affairs and Regional Integration,
Alhaji Mohammed Mumuni, said the agreement had come
at the right time, especially at a point when the government
was determined to achieve food security, adding that the
significance of the agreement could not be overemphasised.
He noted that cassava remained a major
staple for Ghanaians ‘therefore, if we succeed in utilising
the most advanced and proven technologies to transform
its production, the impact on Ghana’s agriculture will be
truly immeasurable.’ He stated that Brazil and Ghana had
enjoyed good relationships over the years and that it was
encouraging that the two countries were currently working
together on projects of great economic, scientific and
cultural significance. Ghanaian Times
UNDP- AMSCO Assists Northern
Communities of Ghana
The African Management Services Company (AMSCO) a
project of the United Nations Development Programme
(UNDP) executed by the International Finance Corporation
(IFC), has brought a ray of hope to communities in the
Northern Region of Ghana through the delivery of a timely
training programme which reached 2,313 women shea nut
pickers. This was done as part of AMSCO’s capacity
development services offered to its client - The Pure
Company (TPC).
AMSCO, a pioneer of capacity and skills development in
the African SME sector, is also currently offering
management and training services through the support of
24 AMSCO Managers seconded to 15 companies in
Ghana. The Pure Company, a shea processing firm
situated in Benkrom in the northern part of Brong Ahafo,
started purchasing shea nuts from the northern part of
Ghana in 2006 through women contractors who have been

Newsletter May 2010 Page 6 of 13
organised into groups and cooperatives. As a
development partner, committed to ensuring successful
operations for its client and also contributing to
improvement of the standard of living for people in the
community, AMSCO collaborated with TPC to bring this
much-needed training to the women shea-nut pickers in
the Central Gonja, West Gonja and North Kintampo
Districts in the Northern and Brong Ahafo regions of
Ghana .As a rule, shea butter produced by traditional
methods is generally of poor quality and this is
attributable to poor kernel quality and the crude method
of extraction. The objective of the training was to
educate these women on preferred methods of
harvesting. The women were taken through the
necessary steps in producing quality nuts and kernels
using standard operation procedures (SOPs) while
highlighting the critical control points (CCP) to attain
quality.
Revenue agencies’ boss diagnoses the tax
problem
The Commissioner-General of Ghana Revenue Authority,
Mr George Blankson, has said that the challenge facing the
revenue collection agencies in Ghana is their inability to
effectively tax the public to contribute their quota to the
development of the country. He said that the revenue
collection agencies could perform better in delivering on
their mandate for national development, if they ensured that
Ghanaians paid their taxes regularly.
Mr Blankson made these remarks when he paid
familiarisation visit to the offices of the revenue collection
agencies in Accra. They include Customer, Excise and
Preventive Service (CEPS), the Internal Revenue Service
(IRS) and the Valued Added Tax (VAT). The
Commissioner-General reminded the revenue
administration of its core function, which included receiving
and processing returns, examining records of the tax payer
to ascertain veracity of declaration, managing debts and
enforcing payment of debts. The Ghanaian Times
Jubilee subsea structure nears
completion
The contractor for the subsea structures at the Jubilee Oil
Fields, Technip, has said the company has completed more
than 65 per cent of various installations in readiness for the
arrival of the floating, production, storage and offloading
(FPSO) vessels. It said almost all the connections to the
drill centres on the seabed to the riser bases had been
completed, while other works and fabrication off and
onshore were currently ongoing to ensure that the country
started its production from the last quarter of this year.
The Country Manager for Technip, Mr Stephen Sole, said
the completion of the other parts which involved the
installation of four production rises, two gas rises, water
injection rises and other facilities to the FPSO would be
done by a special vessel, Deep Pioneer. He said the
completion of the FPSO in Singapore was good news to the
company’s operation since they had gotten close to the
area where the remaining works would be the connection of
the needed lines from the bases to the turret for production
to commence.
The training package also included modules to sensitise
the women on other social and topical issues such as
HIV/AIDS Awareness and Personal Hygiene. The total
package had the singular aim of contributing towards
improving income levels and livelihoods in the region.
www.thebftonline.com
Mr Sole said the Deep Pioneer would arrive in the country
two weeks after the FPSO had taken position, and would
be accompanied by two other supply vessels, which would
feed it with needed input for the timely completion of the
Jubilee Project. Daily Graphic

Newsletter May 2010 Page 7 of 13
Tullow assures: 1 st oil in 4 th quarter
Tullow Oil Plc’s Jubilee Field in Ghana is
on target to produce its oil in the fourth
quarter this year, with the first cargo expected as early
as December, said a senior executive at the oil
company. “First oil is schedule for the fourth quarter, so
discovery to first oil in 40 months,” Tullow’s Exploration
Manager for Gulf of Guinea, Mr Robin Sutherland, said
at the Africa Petroleum conference in London. “We feel
it is common mistake that oil companies make in
neglecting their exploration roots,” said Sutherland, “We
have no intention in doing this, and 80 per cent of our
2010 capital will be spent in Africa.” He said the
company was on target for the Floating, Production,
Storage and Offloading (FPSO) vessel to sail in May,
and has already started well-completion activities. Mr
Sutherland said the first stage development cost of the
Jubilee field remained within the original USD 3.1 billion
budget. The field’s output is expected to ramp-up to
120,000 barrels a day within six months of first oil
produced. The Ghanaian Times
Ghana’s salt losing market
Ghana’s salt industry is becoming less
attractive for export to landlocked
neighbouring countries because of the high cost of
transportation, industry stakeholders have indicated.
They attributed the increase in the cost to the country’s
implementation of the axle-load regime under which
cargo trucks on their outward journey to these countries
are not allowed to load goods beyond the axle weight of
the trucks. For example, they told the Times that trucks
which hitherto loaded 2,000 bags of salt were now
compelled to cart 1,000 bags per trip from Ghana, while
their charges remained between GH¢ 6,700 and GH¢
7,000 a trip. This has made Ghana’s salt more
expensive on the market and is now losing ground to
salt producers from countries such as Senegal and
Algeria. The fear is that if the trend continues it will
collapse. Commenting on the issue, Lt. Col (retd) Jacob
Dortey, Chairman of the Interim Management
Committee of the Ada Songor Salt Company, asked the
government to take immediate steps to ensure that salt
from the country becomes attractive to exporters. The
Ghanaian Times
New gas supplies to solve energy
crisis
Ghana expects new natural gas supplies
arriving this year to help ease a power crunch that has
triggered blackouts and agitations for tariff increases by
utility providers. Some 130 million cubic feet per day
(cfd) of the power plant fuel are expected this year from
the newly-restarted West Africa Gas Pipeline and the
offshore Jubilee Field that is due to start up in the fourth
quarter. The new supplies are expected to significantly
reduce the cost of generation and make power affordable
for both business and domestic consumers,
Deputy Information Minister, Samuel Okudjeto Ablakwa,
told Reuters. “It is also an incentive for construction of new
power plants to boost national capacity to power bulk users
such as VALCO,” he said of the sole aluminum refinery
which became idle in January 2009. The West Africa Gas
Pipeline Company finally started flows of gas from Nigeria
to Ghana on March 20, following a nearly one-year delay
caused by vandalism, an official said. Business and
Financial Times
Chinese investors to establish USD 300m projects
A group of Chinese investors have signed a memorandum
of understanding (MoU) with a Ghanaian entrepreneur to
build 10 factories to manufacture various products for the
West African market.
The CEO of D.K’s UNIK DEZINES, Denis Anderson,
disclosed that the total investment value is approximately
USD 300 million and expected to generate about 500 jobs.
“Immediately factories will be established in the water,
quarry, air conditioner, and tractor tricycle and motor bikes
sector,” Mr Anderson said adding that the agricultural
sector was the main target of the tricycle tractors.
The Chinese investors including Haige Industries’
Chairman, Peng Ye Zhen and the China Shandong
Minister, Lu Zaimu, further disclosed that factories would
also be set up in the automobile sector, as well as the
electronics and security equipment.
GPHA wants scanner system reviewed
The Ghana Ports and Harbours Authority
(GPHA) has called on the Ministry of Trade and
Industry to review the current scanning regime to avert
delays at the post, especially at the scan area.
Mr Richard Anamooo, Director of Tema Ports, made the
call at a press briefing to throw light on activities at the
ports. The scanners at the ports have been allocated
cargoes from specific geographical areas of the world. As a
result, if more cargoes from a particular area are scanned
in a day it can create congestion at a particular scanner,
while the other scanner might do less work. Besides some
truck drivers choose to spend time in the parking area after
scanning had been completed, leading to congestion. Mr
Anamoo also called on the Ministry of the Interior to take
steps to expedite the clearance of dangerous cargoes from
the port. The Ghanaian Times

Newsletter May 2010 Page 8 of 13
INDUSTRY / BUSINESS NEWS
STANCHART develops
appetite for NEDBANK
Standard Chartered Bank is in
talks to buy South African bank, Nedbank, in a potential
US$10 billion deal, Sky News television has reported.
Buying Nedbank will bulk up Standard Chartered’s
presence in Africa’s biggest economy, which is
increasingly seen as a gateway into the fast-growing
continent. It is one of the country’s top four banks. Sky
said talks had taken place between Standard Chartered
and Nedbank, although they were at a relatively early
stage. It said Goldman Sachs was advising Standard
Chartered. The South African government could be a
stumbling block to any transaction, although the CEO of
Standard Chartered, Peter Sands, was keen to pursue
a takeover, sky said, citing people close to the
discussions. Standard Chartered, Nedbank and
Goldman Sachs declined to comment. Daily Graphic
14 UK firms explore Ghana
A delegation from the South London Export Club
(SLEC) is currently visiting Ghana. This is the club’s first
visit to Ghana with a group of 14 British companies,
promoting a wide range of products and services.
Products include refurbished computers and high
quality reconditioned generators, second-hand clothes,
food and groceries, laboratory and hospital equipment,
stud bolts and anchor, other fasteners and corporate
gifts. Services include consultancy for the oil and gas
industry, environmental consultancy, business
consultancy, management training, and recruitment
services.
The mission participants have a range of objectives,
including looking for local representatives, qualified
distributors or agents and clients. Some will be
researching the market for the first time, others will be
building on existing contacts and all will be looking
forward to making new contacts. Ghanaian Times
Germany pledges support for tourism
sector
The Federal Republic of Germany has agreed
to support Ghana to put up a Tourism Academy to train the
youth in the hospitality industry. Mr Hans Christian Winkler,
the Deputy Head of Mission at the German Embassy, said
this when he paid a courtesy call on the Tourism Ministry,
Mrs Zita Okaikoi, at her office. He noted that there were
many areas in the tourism industry that the two countries
could tap for their mutual benefits. Ghana has made a lot of
remarkable improvements in its tourism industry, he said,
adding it is time for the country to market itself, he stressed.
Germany, he pledged, would continue to help the country to
explore areas in the tourism industry to create employment
and attracting more tourists into the country. Ghanaian
Times
Standard Bank named top deal
maker
Standard Bank, mother bank of Stanbic Bank Ghana, has
been recognised for its excellence in emerging markets,
winning three awards in the prestigious The Banker ‘Deal of
Year’ Award for 2010.
The Banker announced ‘Deal of the Yea’ awards to
Standard Bank for the following three deals; the USD15
million, Cocoa-Receivables Revolving Trade Finance
Facility, Agro Traders Limited, (Nigeria) USD 200 million
Republic of Senegal Eurobond issue – Republic of Senegal
USD 500 million, Lower Tier 2 subordinated Eurobond.
Each year, The Banker, the pre-eminent publication on the
banking sector, acknowledges the best financial transaction
undertaken in the key regions of Africa, the Americas, Asia,
Europe and the Middle East. Entries are judged across 10
categories ranging from Mergers and Acquisitions, equities,
bonds and Islamic Finance. Commenting on the wins,
Florian von Hartig, Global Head of Debt Capital Markets,
said: “These awards from the banker are testament to
Standard Bank’s innovative approach to structuring deals in
emerging markets, and I am delighted with the recognition.”
Standard Bank’s heritage of nearly 150 years, its
pioneering spirit and proven track record gives it a distinct
advantage in emerging markets and The Banker’s
accolades are a reflection of the expertise within the team
and their ability to structure and deliver high quality
transactions to clients.” The Ghanaian Times

Newsletter May 2010 Page 9 of 13
Bharti Airtel enters Africa through Zain
Zain Africa BV, owned by mobile telecommunications
KSC of Kuwait, has finally succumbed to pressure from
the Indian telecom giant, Bharti Airtel by releasing its
Africa operations for a whopping enterprise value of
USD 10.7 million. This comes barely a year after Bharti
in its attempt to capture Africa failed to acquire MTN of
South Africa after several attempts. The transaction
implies equity values of US$9 billion and consideration
will be fully satisfied in cash, of which USD 8.3 billion
will be paid upon closing and USD 0.7 billion will be
paid a year from closing. Bharti Airtel will assume USD
1.7 billion of consolidated debt obligations. According to
Zain, subject to shareholders’ approval, the size of
available distributable reserves and the payment of the
USD 4 billion Revolving Credit Facility, Zain intends to
distribute a large proportion of the upfront net proceeds
to shareholders in the form of dividends. The
transaction is also expected to close as soon as
reasonably practicable subject to the satisfaction of
certain approvals. Graphic Business
UNIDO to start investor survey in Ghana
The United Nations Investment and Development
Organisation (UNIDO) will undertake its first investor
survey in Ghana as part of its Africa Investor survey for
2009 from this month till June. Ghana’s survey will be
launched on April 9, 2010. A statement issued by the
UNIDO said the survey would essentially seek to find
detailed, comprehensive and empirically sound answers
to the investment needs of Africa. This survey is
designed to provide a means for participating countries
to assess their own needs for improving their
investment climate and for designing the required
interventions. The statement said the survey also took
into consideration the assessments conducted by other
international organisations. The UNIDO African Investor
Survey 2009 is a component of a large scale regional
programme that covers more than 20 countries in
Africa, including Ghana. Daily Graphic
MUNICH TO MAURITIUS
Nigeria promises to ease textile trade
barriers
Nigeria’s new commerce minister has
promised to ease trade barriers in the country’s textile
industry within the next few months, a ministry official
has said. Mr Jibril Martins-Kuye, who was appointed by
President Goodluck Jonathan, said sub-Sahara Africa’s
second-biggest economy was burdened by numerous
trade obstacles. “On textiles, give me a few weeks to sit
down in the office so we can address the (trade problems).
As an industrialist with many decades of experience, I know
where the shoe pinches,” Kuye said, according to a video
provided to Reuters by the ministry. Nigeria currently bans
importation of finished textiles and designs, a restriction
aimed at giving domestic manufacturers a chance to thrive.
But industry sources said the removal of trade restrictions
would make the industry more competitive and create
opportunities for global brands looking to invest in one of
the world’s least-tapped markets. Business & Financial
Times
High transport costs killing businesses
Inefficiency and a highly regulated trucking market are the
primary cause of trucking costs in West Africa which are
among the highest in the world - the recently launched
Borderless initiative of the West Africa Trade Hub (WATH)
has shown. The new Trade Hub study shows why costs
are high on the Tema-Ouagadougou corridor and what can
be done to lower them. Lowering the costs could increase
exports, create jobs and lower the costs of imported staples
like rice, improving food security for millions of people. ‘It
costs about USD 4,800 and takes anywhere from 13 to 22
days to bring a container from Tema to Ouagadougou,”
said Trade Hub Transport Director, Niels Rasmussen. “To
move one the same distance in the United States from
Newark to Chicago costs about USD 650 and takes just five
days. This is even more remarkable when you realise that
labour costs in the U.S are 25 times higher.” The report
revealed that in January, traders bought shea nuts in a
village in Burkina Faso for about USD 380 per tone. The
difference USD 120 per tonne sustains the business of
exporting shea nut. But because West Africa has some of
the highest transport costs in the world, the business is not
competitive as it could be. More than 20 per cent of the
costs she exporters face pay for transport and logistics.
EU dangles E.P.A. before West Africa’s
eyes
The European Union (EU) Ambassador and Head of
Delegation in Ghana, Mr Claude Marten, has urged
governments in the West African sub-region to sign on to
and ratify the Economic Partnership Agreements (EPAs)
they initialed on December 13, 2007. He said by signing
onto the EPA, countries in the sub-region would continue to
enjoy duty-free access of their exports to the EU markets.
The ambassador made the call when he delivered a lecture
on the topic ‘Where we Stand (the EU) in the process of
concluding negotiations of comprehensive EPA, and
consolidating interim agreements’ at the University of
Ghana, Legon in Accra. In attendance were students and
lecturers from the University of Ghana Business School and
other members of academia. He said by negotiating EPAs
the EU wanted to establish mature trade partnership for
development between the EU and EPAs regions, and strike

Newsletter May 2010 Page 10 of 13
a careful balance between rights and obligations of both
partners. Ambassador Marten said about a decade ago,
Africa, Caribbean and Pacific (ACP) countries and the
Europeans jointly set out to define a trading partnership
that would drive the growth of their economies and
reduce poverty. The Ghanaian Times
Nigeria, China trade hits 1,053 trillion Naira
Mr Rong Yansong, the Economic and Commercial
Counselor of the Chinese Embassy in Nigeria, has said
that trade volume between both countries have
increased from USD 3 billion in 2006 to USD 7.24 billion
in 2008. The counselor said this in Abuja while briefing
30 civil servants billed to attend a two-week training
conference in China. Rong said the trade volume,
however, dropped to USD 6.35 billion in 2009 because
of the global economic meltdown. “With the trade
volume of USD 3 billion in 2006, USD 4 billion in 2007,
USD 7.3 billion in 2008, which dropped to USD 6.35
billion in 2009, the trade between Nigeria and China still
keeps a stable growth,” Rong said. He said China’s
investment in Nigeria at the end of 2009 was USD 7.24
billion in sectors such as free trade zone, energy,
agriculture, manufacture, mining and infrastructure.
Rong said in appreciation of the increasing trade
volume with Nigeria, the Chinese government was
constructing four rural primary schools and a hospital in
Nigeria. Daily Graphic
World Bank approves USD 228m for
Abidjan/Lagos corridor
The World Bank has approved US$228
million for the first phase of the Abidjan-Lagos Trade
and Transport Facilities Programme. The project will
help overhaul the main transport artery stretching from
Abidjan to Lagos, and the customs and immigration
posts and systems located on it. This regional operation
will help improve the movement of people and facilitate
trade between the five countries served by corridor –
Cote d’ Ivoire, Ghana, Togo, Benin and Nigeria. The
9,988 km coastal corridor links some of the largest and
most economically dynamic capitals in Africa (Abidjan,
Accra, Lome, Cotonou and Lagos), and serve a
population of over 35 million people. Several segments
of the corridor account for the highest traffic in West and
Central Africa, with up to 10,000 people and several
thousands of vehicles crossing borders each day. Daily
Graphic
Virgin Atlantic to break BA near monopoly
in Ghana
Virgin Atlantic, one of the world's leading UK-based
airlines, on Monday made their inaugural flight from London
to Accra and promised to break the near monopoly that
British Airways has enjoyed on the Accra-London route.
Airline owner, world acclaimed billionaire, Richard Branson
told local and foreign journalists in Accra that "our new
services will bring the much-needed competition onto the
route, increasing seat availability by 35 per cent and
breaking the near monopoly BA gas enjoyed over the
years." Mr. Branson arrived in Accra at about 1615 hours
on Monday onboard Virgin Atlantic Airbus A340-300
aircraft, which has 240 seats, comprising 34 Upper Class,
35 Premium Economy and 171 Economy class seats.
The Virgin Atlantic Airbus is scheduled to fly from Accra on
Mondays, Fridays and Saturdays at 1015 hours, and arrive
in London 1800 same day and fly from London on
Thursdays, Fridays and Sundays at 2230 hours each night
and arrive in Accra at 0415 hours the next day.
Mr. Branson noted that within the year, Virgin Atlantic
expects to fly more than 60,000 passengers, all of whom
would benefit from more choice, competitive fares and
value for money. He noted, for instance, that fares for the
Upper Class Suite, which came with an additional feature of
a private bar for each passenger, cost thousands of pounds
less than other airlines' First Class fares. "The flights will
not only allow more people to travel directly between
London and Ghana but Ghanaians will also benefit from our
onward connections to New York and many other places on
Virgin Atlantic's network," he said. Ghana is the fifth African
destination for Virgin Atlantic, and Mr. Branson said Ghana
was chosen because of its good democratic credentials
Mr Hammah assured players in the airline industry and the
public that government would continue to improve and
facelift the Kotoka International Airport and regional airports
through infrastructural rehabilitation and installation of new
communication navigation and surveillance equipment. Mr.
Nick Prescot, the British High Commissioner, noted that
Virgin Atlantic had the reputation for choosing best
destinations in the world and that it was not surprising that
Ghana was chosen.
The Virgin Atlantic is one of the many companies under the
Virgin Group of Companies, which include Virgin Mobile,
Virgin Records, Virgin Express, Virgin Rail, Virgin Galactic,
Virgin Music, Virgin Games, Virgin Balloon Travels and
several others. www.ghanaweb.com

Newsletter May 2010 Page 11 of 13
Netherlands Private Sector Investment Programme
(PSI)
PSI is an untied programme which supports innovative
investment projects in emerging markets like Ghana. A
PSI-project is a project with a foreign and a Ghanaian
partner, if a project meets the criteria it can be eligible
for a grant by PSI. This grant consists of a financial
contribution to the costs of investment. The PSI
guidelines describe the procedures and criteria that
apply to the programme. A new tender will open on
June 15, 2010 and it will close on August 23. The
programme is run by the ministry of Economic Affairs in
the Netherlands and not by the Embassy.
For more information, see the
website:http://www.evd.nl/business/programmes/progra
mmaint_psi.asp?land=psi
Some PSI project characteristics
• Partnership between foreign and Ghanaian company
• Pilot project: pilot scale, innovative, risky,
• Contributing to the local economy: jobs, training,
income, knowledge transfer
• Duration of approximately two years (three for
agriculture)
• Investment in hardware and technical assistance
• No commercial financing available
Apply for PSI in Ghana:
• PSI finances 50% of the total project budget (as a gift)
• Maximum project budget is € 1,500,000
• Remaining 50% is paid by the project partners
General criteria for partnership:
• Applicant needs to be a registered company
• Recipient is an officially registered Ghanaian private
company
• Project is in line with core business of the partners
• Partners are financially sound
• Partners set up long term cooperation (preferably a
Joint Venture)
• Project idea clearly elaborated
• Market analysis (incl. statistical figures)
• Clearly defined results (with regard to production and
sales figures, employment, training)
• Project budget (hardware and technical assistance)
• Financial plan (incl. cash flow analysis)
• Operational plan
Development effects:
• Direct employment created
• Introduction of new technology
• Transfer of knowledge and training
• Income effects
• Chain effects (SME's, local farmers, etc.)
• Impact on the position of women
• Impact on the environment
• Corporate Social Responsibility
• Spin-off investments
• No disturbance of local market
More information on PSI can be found on the
agentschapnl.nl website:
http://www.evd.nl/business/programmes/programmaint_psi.
asp?land=psi
The Senior Experten Service (SES)
This is a non-profit organisation which
with the help of Senior Experts (Retired specialists in many
fields), promotes the vocational training, further education
and qualification of specialists and executives in Germany
and abroad.
The GGEA promotes the private sector through SES. We
recruit companies and support their application to the SES.
Small and medium-scale private businesses get support
from SES and in most cases bear only the cost of lodging
and daily allowance of € 7.00.
Here are a list of GGEA Members and clients who have
and are in the process of requesting for SES:
• Pure Company
• Vicdoris Pharmaceuticals Ltd.
• Fine Print Industry Ltd.
• KEK Insurance Brokers Ltd.
• Danadams Pharmaceuticals Ltd.
• Atlantic Computers Ltd.
• Hufra Compu-Techs Ltd.
• Santinos Sausages & Fine Meat (request sent)
• Prime Stone Quarries (request sent)
• Genser Power (request sent)
Contact the GGEA Office for further information and
application forms. GGEA is delighted to represent SES.

Newsletter May 2010 Page 12 of 13

Newsletter May 2010 Page 13 of 13
GHANAIAN DELEGATION TO SOLAR ENERGY TRADE MISSION IN PICTURES
Left-Right: Mr Patrick Martens (GGEA), H.E.
Dr. Paul K. Ayene (Ghanaian Ambassador to
Germany), and Mr Stephen Antwi (GGEA).
Cross section of participants at a demonstration
plant At SMA Technologie AG
Ghanaian delegation to GTAI Trade
Mission at SMA Technologie AG
Ghanaian delegation at Sonnenwerft in
Hannover
Mr Alexander Nortey (Alnort Ltd.), during a
business to business meeting
Mr Nyemitei (African Legacy Finance Ltd.), during a
business to business meeting
Ghanaian delegation at Cathedral
of Cologne
Mr Reindorf Sey in a discussion with a
rep from Gerhlicher AG
Ghanaian delegation at juwi Solar GmbH-
Wörrstadt
Cross section of participants during the
welcome seminar at Hotel Ibis -Frankfurt ,
Germany
Presentation on Ghanaian solar market by Mr. Fredrick
K. Appiah (Senior Programme Officer-Energy
Commission, Ghana)
Ghanaian delegation at Wagner + Co-Colbe