June 2006 - Ghanaian-German Economic Association

Newsletter June 2006 No. 20, Page 1 of 8
Dear
Members,
Access to finance
and credits is the
major challenge for
Small and Medium
sized Enterprises
(SMEs) in Ghana. As
we reported in our
last newsletter our cherished member Amalgamated
Bank has been outstanding at this year’s Ghana Banking
Awards and honored with the selection as the best bank
in ‘customer care’, the best bank in ‘short term loan
financing’ and was the second runner up in the
categories ‘best in advisory services’ and ‘best in
competitive pricing’.
In view of these wonderful achievements and the fact
that we are welcoming two new members, Zenith Bank
and Stanbic Bank, from the banking sector into GGEA,
we thought it is a good opportunity to let all of them
introduce their portfolio to us. We have invited them to
advise us on their offers in credit financing and their
special offers to our members at our next GGEA Happy
Hour. The topic for the occasion is ”Credit facilities for
SMEs offered by GGEA member banks”.
This will be our last event before the summer holiday
season. Taking a look back at the first half year of 2006
the management of GGEA should be congratulated for
working hard to attract 16 new members, with quite a
number of big names among them. We wish to take this
opportunity to remind members, who have not made their
payment for the year 2006, to honor their obligations and
settle their outstanding dues.
Looking ahead into the second half of 2006 our highlight
will be the ‘German week’ in the first week of October.
Members will be invited to participate in a small GGEA
exhibition at the Novotel Accra Hotel, which will also
consist of a business forum and a German ‘Octoberfest’.
The agenda and booking details will be forwarded to you
soon.
And finally, GGEA has got its office car. On Wednesday,
Mechanical Lloyd handed over a beautiful brand new
BMW116 to GGEA in return for future cooperation and
marketing services like advertising and event
management by GGEA. See our detailed report on the
handover ceremony on page 2.
Stephen Antwi
President
New Members at GGEA
FOREWIN
(GHANA) LTD.
Ghassan Yared
Managing Director
Henricus J.M. Wientjes
Managing Director
SPEARSON
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SICL
SPECIALIZED
INSTRUMENTS
COMPANY LIMITED
Charels Dadzie Morgan
Managing Director
Emmanuel Nicholas Tekyi
Executive Director
Kennedy Okosun
Executive Chairman
Andy Ojei
Managing Director /CEO
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 June 2006 Page 2 of 8
Our Upcoming Event – GGEA Happy Hour Dinner
Credit facilities for SMEs offered by GGEA member banks
Speakers:
Venue:
Date
& Time:
Oluwole Ajomale
Managing Director
Alhassan Andani
Managing Director
Andy Ojei
Managing Director
– Amalgamated Bank Ltd.
– Stanbic Bank Ghana Ltd.
– Zenith Bank (Ghana) Ltd.
Swiss Club (on the premises of the Swiss School,
Nima Junction)
Wednesday, 28 th June 2006
5 pm – 7 pm
Price: Members: ¢ 150,000 Incl. Dinner
Non members: ¢ 250,000 + 1 Drink
A New Office Car for GGEA
Mechanical Lloyd hands over BMW 1 Series to
Ghanaian-German Economic Association
Mechanical Lloyd (ML), the
official BMW dealer in Ghana
and a member of the
Ghanaian-German Economic
Association (GGEA) enters
into a premium marketing
cooperation with the GGEA.
On Wednesday, 21 st June
GGEA received a brand new
BMW 116 as its office car
from Mechanical Lloyd in
return for future cooperation
and marketing services like
advertising and event
management by GGEA.
For a period of three years
GGEA will provide
Mechanical Lloyd with close
links to potential premium
clients among Ghanaian businessmen and companies in
exchange for the car. GGEA and Mechanical Lloyd
already started their cooperation on 19 th April with the
“Global Players Night”. Further events like “Test drives”
and a Golf Tournament will follow. GGEA members will
enjoy special prices for purchasing BMW, Land Rover
and Ford cars at Mechanical Lloyd.
In addition to incentives for members of the association
other benefits for Mechanical Lloyd will be the use of the
database and market analysis of GGEA. Mechanical
Lloyd will be enabled to have a better survey on future
purchasing activities of Ghanaian companies who want
to improve theirs fleets.
With the new car the GGEA office will be more flexible to
be in touch with our members and clients, Mr. Stephen
Mr. Stephen Antwi, GGEA, receiving key and papers
from Mr. Yaw Assah-Sam, Mechanical Lloyd
Antwi, President of GGEA pointed out at the hand over
ceremony. The ceremony was also accompanied by the
Deputy Head of Mission of the German Embassy in
Accra, Mrs Jana Orlowski, who emphasized the
importance of a bilateral Chamber of Industry &
Commerce like GGEA in
Ghana, which promotes
international trade and offers
its services to business men.
Mr. Rexford A. Darko
(General Manager –After Sale
Mechanical Lloyd) delivered in
his presentation an overview
on the BMW and Mechanical
Lloyd history in Ghana.
Mechanical Lloyd is the BMW
Dealer in Ghana since 1970
and among the oldest top 10
BMW dealers worldwide.
Mechanical Lloyd is proud to
co-operate with GGEA to
enable bilateral business and
to strengthen German-
Ghanaian business ties. Mr.
Darko remarked that usually
the developing nations are on the receiving side when it
comes to donations but in this is a case the donor is
rather coming from Ghana. Mechanical Lloyd
nevertheless sees the co-operation as a win-win
situation and the co-operation is business driven to
enhance sales in Ghana.
Participants at the ceremony were Mr. Traugott
Spiegelhalter (General Manager, Bilfinger Berger), Mr.
Christian Potyka (Potyka Consulting and GGEA board
member), Mr. Stephen Antwi (Antwi Associates and
President of GGEA), Mrs. Jana Orlowski (Deputy Head
of Mission, German Embassy), Mr. Patrick Martens
(Executive Secretary, GGEA), Mr. Yaw Assah-Sam
(Director Sales & Service, ML), Mr. Morkporkpor Adim
(Group Sales Manager, ML) and Mr. Rexford A. Darko
(General Manger After Sales, ML).

Newsletter June 2006 Page 3 of 8
Members of GGEA
Lawfields Consulting ®
Lawfields Consulting was founded in April 2001 by Ms.
Elsie Addo as a contemporary law practice. Lawfields is
a young and dynamic business which aims to provide
specialized legal expertise for public and private sector
clients.
Our vision is to play a major role in the growth and
development of the Ghanaian economy by providing
legal expertise to private and public sector institutions.
We are driven by a quest to build a legal consulting
practice that is committed to the highest quality of
service based on state of the art knowledge.
Our mission is to be a strategic business partner with our
clients, by providing responsive, resourceful, meaningful,
and cost-effective legal solutions to the challenges they
face. We will achieve this through our expertise,
creativity, innovation, adaptability and commitment to
success.
While we offer our clients unrivalled expertise in all
aspects of the law, our focus areas include
• Corporate Law
• Securities Law
• Financial Services Law
• Direct Investments
• Company Secretarial Services
• Financial Sector Reform
Our focus areas have been carefully chosen to reflect
service areas that build on expertise of our key
Associates.
At Lawfields, our approach to client care, our
management practices, and our culture, are all driven by
the understanding that the delivery of legal services is
not an end in itself. We appreciate that the law is a
means to accomplishing our clients’ business objectives.
We understand that our clients need more than abstract
legal theories, and that they need practical legal
solutions for the peculiar challenges they face. Our
services are designed to add value and to kept our
clients ahead of the competition.
Lawfields employs a team-approach towards helping
clients succeed and prosper in their dynamic
environments. To accomplish this, we bring together a
worldwide network of highly qualified Associates with
legal expertise and broad experience in many other
relevant disciplines to form project teams for specific
projects.
Our competitive advantage lies in the fact that we have a
lean and flexible practice, which draws on the
capabilities of our network of lawyers, and non-lawyers,
with specialized training and experience in our focus
areas. Our international network of consultants enables
us to handle multi-jurisdictional projects and to procure
legal services in other jurisdictions.
Lawfields has the expertise to closely follow both
domestic and international legal and economic trends in
order to understand the environment in which our clients
operate. By this, we are able to provide legal solutions
that help our clients achieve their business objectives.
Typically our clients include a wide range of public and
private businesses, government institutions, investment
schemes and funds, and non-profit organizations
contributing to market development. Varied as they may
be, our clients share the common objective of striving to
build and maintain successful organizations and
achieving their goals in an environment of rapid and
continuous change.
Elsie Addo
Elsie is a
corporate lawyer
with over ten
years’ practical
experience. She
has consulted
extensively in
corporate and
investment law
matters relating
to small, medium,
and large-scale
projects. She is
currently the
Managing Consultant
of Lawfields
Consulting.
Under her
leadership, the Firm has worked with various clients to
execute projects in different sectors of the economy,
adding value to their businesses.
Ms. Addo background is multi-disciplinary, with
qualifications and experience in law, finance,
management, and corporate governance. Her previous
work experience includes working in corporate finance
with the SEM Financial Group. She also worked as a
Senior Treasury Dealer with Barclays Bank of Ghana on
a short-term contract in early 2001. Prior to that, she had
worked as an associate of well-recognized law firms in
Ghana,
Ms. Addo is a Commissioner (Board member) of the
Securities and Exchange Commission, the securities
market regulator in Ghana. In that capacity, she chairs
the Research and Market Development Committee, and
is a member of the Approvals & Licensing Committee,
and the Administrative Hearings Tribunal. She holds the
Bachelor of Laws (LL.B) Degree and the M.B.A
(Finance) Degree from the University of Ghana, Legon.
She is a member of the Ghana Bar Association, and a
member and director of the Ghana German Economic
Association.
Lawfields Consulting
5th Fl. Trust Towers, Farrar Avenue, Asylum Down, Accra
PMB CT 244, Cantonments, Accra, Ghana
Telephone: +233-21-240649
Fax: +233-21-240656
Email: esaddo@yahoo.com

Newsletter June 2006 Page 4 of 8
GGEA Members News
A new Managing Director at
Amalbank
Mr. Abra-Appiah, whom we all
expect to be in Germany at the
moment jubilating on the
success of the Black Stars, will
have the time now to dedicate
all his energy to his passion, the football, as he went on
retirement this month. He is succeeded as Managing
Director of Amalgamated Bank by Mr. Oluwole Ajomale.
Scancom's 2005 Revenues Soar to USD323
Million
Scancom Ghana Limited,
operators of the Areeba
mobile phone network,
generated an estimated
USD323 million in gross revenue in 2005, up from
USD181 million in 2004. "The company's sterling
performance once again confirms its position as the
most profitable company in the country," reports the
Business & Financial Times. In other news, Scancom
has pledged USD20 million for the construction of the
Weija-Okponglo Water loop project, which is designed to
help ease the perennial water shortages in Accra.
Government will provide the remaining USD10 million.
The project involves the expansion of the capacity of the
Weija Water Works and the laying of pipes to distribute
the water to communities that need it. (Daily Graphic)
GHACEM invests ¢ 7 billion to enhance safety
Ghacem Ltd. is investing about 7
billion cedis during a four year
(2005-2008) period to enhance its
Health, Safety and Environment
(HSE) levels of compliance. The
investment would ensure
GHACEM plants continue to
comply with local standard and
meet those of the GHACEM parent company,
Heidelberg Cement Group of Germany.
National/Economic News
Fiscal Deficit Worsens While Trade Deficit
Stabilizes
Preliminary figures on the implementation of the 2006
budget for the first quarter of the year reveal that
government expenditures have significantly outpaced
revenues, resulting in a wide increase in government net
domestic borrowing, compared to the same period last
year. However, Ghana's merchandise trade deficit for
the first quarter has "more or less stopped widening" for
the first time in two years, according to figures released
by the Bank of Ghana's Monetary Policy Committee. For
the first four months of 2006, the trade deficit amounted
to USD457.4 million, a marginal 2.7 percent rise over
the USD455 million figure recorded during the same
Scancom and Coca
Cola send Football
fans to Germany
Scancom took 200
customers to Germany
to support the Black
Stars at the ongoing
World Cup. For the past
few years, the company
has been supporting
sports as part of its
social responsibilities.
(Daily Graphic)
Coca Cola Bottling
Company of Ghana
also took 200 fans to
the Cup through
sponsorship to the
Ghana Supporters
Union (GHANASU),
who sent 300 fans in
total to Germany.
(Business Week)
We are sure they will be forever grateful to their
sponsors, as Ghana has performed already so
wonderfully.
Zenith Bank to Move Nigerian Banks onto Int'l
Scene
Zenith Bank Plc, the Nigerian
motherbank of our new member
Zenith Bank (Ghana) Ltd., in
partnership with JPMorgan
Chase, has been appointed as
the first global custodians of
Nigeria's foreign reserve, which
is projected to grow to about
USD50 billion by the end of
2006. The governor of the Central Bank of Nigeria,
Charles Soludo, said the decision would help develop
Nigeria banks into world-class players. He said the
central bank is looking for strategic partnerships that will
help integrate Nigerian financial institutions into the
world financial system. (B&FT, Daily Graphic)
period last year. Meanwhile, on the local foreign
exchange market, the volume of foreign transactions
comprising purchases and sales by banks and forex
bureaux in the first quarter amounted to USD2.18 billion,
up 22.1 percent over the figures recorded during the
same period last year. (Business Week)
Standard & Poors Gives Ghana a B+
Standard & Poors, one of the world's top international
credit rating firms, has retained Ghana's B+ rating for
both foreign and local currency credit risk. The firm
made its decision based on an expectation of continued
prudent economic policies that foster stability and
growth. However, its report indicated that Ghana could
improve its rating by undertaking additional privatization
and by broadening its narrow economic base. (BW)

Newsletter June 2006 Page 5 of 8
BoG Holds Prime Rate Steady as Inflation
Drops Again
The Bank of Ghana (BoG) has
decided to maintain its prime
rate of 14.5 percent, despite
improvements in the macro
economy. "A 14.5 percent prime
rate would lock in the gains
made so far in the economy and
provide a sort of insurance
against probably shocks in the
months ahead," said BoG
Governor Dr. Paul Acquah.
Inflation fell for the second Dr. M. Bawumia
straight month, from 9.9 percent
in March to 9.5 percent in April. (B&FT) Meanwhile,
President John Kufuor has appointed Dr. Mahamudou
Bawumia as Deputy Governor of BoG. (Business Week)
WAMZ Faces Setback
Moves to establish a second monetary zone in the West
African sub-region are likely to be setback, as member
states are fail to move toward ensuring crosslisting on
their stock markets. Crosslisting of stocks and securities
would enable companies and individuals in any of the
member states to trade on other markets in the
subregion. "It is clear that the West African Monetary
Zone (WAMZ) goal of achieving the cross listing of
stocks and securities of the subregion by December
2006 will not be met," said Kwadwo Baah-Wiredu,
Ghana's Minister of Finance and Economic Planning.
(The Ghanaian Times)
ADB Lauds Ghana's Economy and More
Ghana received kudos at the recent African
Development Bank annual general meeting for its
positive record of economic reforms which have turned
its economy around. Experts on African economies at
the meeting said Ghana has demonstrated the speed
with which it is possible to turn around an ailing
economy. Ghana has also asked the ADB to issue
cedi/euro bonds on the international financial markets.
Meanwhile, the ADB and the government of Ghana have
signed a loan agreement of USD68 million to finance the
Accra Sewerage Improvement Project, which will extend
the city's sanitation system to meet the demand up to
the year 2020. (Daily Graphic, B&FT)
BoG Pushing for Laws to Combat Financial
Fraud
The Bank of Ghana is facilitating the enactment of four
new laws intended to address the growing problem of
financial fraud in the country. The new laws - the Anti-
Money Laundering Bill, the Electronic Transaction Bill,
the Computer Misuse Bill and the Credit Reporting Bill -
are each at various stages of preparation. If enacted, the
laws would give bankers and security personnel the
legal grounding to deal with the emerging problem of
financial fraud emerging out of the use of advanced
technology in banking in Ghana.
(The Ghanaian Times)
GSE Seen Recovering from a Bad 2005
The Ghana Stock Exchange is gradually recovering after
"hitting a bad patch" in 2005, reports the Daily Graphic.
"We do not expect those exciting returns experienced in
2003/2004, but certainly the market will not end up in the
red," said Daniel Ogbarmey Tetteh of Databank
Financial Services. Overvaluation of stocks in 2005
precipitated their downward re-rating, said Mr. Tetteh,
but "the valuations of listed companies on the market are
improving." (Daily Graphic)
ECOWAS to harmonize agricultural standards
ECOWAS
recently
held a
meeting in
Accra to
discuss
efforts to
harmonize
standards
for
agricultural
exports.
During the meeting, stakeholders discussed the
promotion of an environmentally friendly standardization
program that would increase the competitiveness of the
economies of ECOWAS members and make investors
appreciate the sub-region as an integrated market. "The
European Union has regionalized its standards and
markets to achieve trade expansion among its member
states and beyond its borders," said Kofi Osei-Ameyaw,
Deputy Minister of Trade, Industry, Private Sector and
President's Special Initiative. "We should, therefore, not
allow our national standards to continue to present
technical barriers to the free flow of goods both within
and beyond the borders of ECOWAS." (Daily Graphic)
Ghana on Course to Attain Middle-Income
Status Given the government's success in stabilizing
macro-economic indicators, Ghana can attain middleincome
status through the Ghana Poverty Reduction
Strategy (GPRS) II program, said J.H. Mensah,
Chairman of the National Development Planning
Commission. His remarks came at the national
symposium on GPRS II entitled "Toward a Middle-
Income Economy: A New Development Agenda for
Ghana." "If we all come to believe that the future of
Ghana will be characterized by a much more vigorous
pace of economic development, and if we all act on that
same assumption, then a higher rate of economic
growth will indeed be attained," he said. (The Ghanaian
Times)
Wood Product Exports Earn 41 million Euros
Ghana earned over 41 million euros from the export of
some 106,000 cubic meters of wood products during the
first quarter of 2006, representing a 1.4 percent increase
in value and a 1.9 percent increase in volume over the
same period last year. (Daily Graphic)

Newsletter June 2006 Page 6 of 8
PURC Set to Impose New Water Tariffs on
Industrial Users
The Public
Utilities
Regulatory
Commission
(PURC)
plans to
introduce a
special tariff
to waterintensive
industries,
to better reflect the value of their water usage. The new
tariffs will apply to medium and large-scale firms that
draw water from the Ghana Water Company Limited.
(Daily Graphic) The PURC is also imploring the
government to do more to upgrade the country's aging -
and failing - water and power infrastructure. PURC
officials warn that without further investment in
upgrading the nation's utilities, power outages and water
shortages could become the norm. Government has
pledged to "find" USD1.5 billion for the much-needed
upgrades. (Daily Graphic)
IFC to Help Ghana Develop Leasing Industry
The International Finance Corporation has offered the
Ghana Leasing Program a technical assistance package
in an effort to improve the country's investment climate.
The package includes facilitating the enhancement of
the country's legislative, tax and accounting environment
for leasing; capacity building training for stakeholders in
the leasing industry; and business development through
the creation of opportunities for new local and foreign
investment in leasing through developing linkages
between lessees, equipment manufacturers and
financial institutions. (Daily Graphic)
FDI Inflows Hit Record High - GIPC
Foreign direct investment inflows into Ghana registered
with the Ghana Investment Promotion Center (GIPC) for
the first three months of 2006 saw an astounding
increase in the total value of commitments made, while
declining just slightly in actual number of projects as
compared to the same period last year. From January to
March 2006, the total number of projects registered with
foreign participation numbered 53, down one from the
same period last year.
However, the total value of those commitments was
USD2159.21 million, an astounding 9975.6 percent
increase from 2005, the highest ever recorded in the
history of GIPC. The significant increase in the value of
FDI registered during the quarter is the result of the
huge projected value of the investment by ALCOA
Group of Companies into the bauxite industry. (Business
Week)
EU Offers Over 970 Billion Cedis in Project
Support
The European Union is
making available a grant of
973.4 billion cedis to the
government to support four
major projects in the
country, including the
second phase of the
Kumasi-Techiman Road,
feeder roads in the Eastern
Region, water and
sanitation projects in the
Central Region, and the
Cultural Initiatives Support
Project (CISP). (Daily
Graphic)
Business/Industry News
GNCCI Accuses DICs of Overvaluation
The Ghana National Chamber of Commerce and
Industry (GNCCI) "is getting increasingly incensed" at
the way invoices covering import goods are overvalued
at the Destination Inspection Companies (DICs). DICs
are responsible for price verification of import goods on
behalf of the Customs, Excise and Preventive Sercice
(CEPS) to ensure the appropriate payment of import
duties. "Because the income of DICs is dependent on
the amount of valued goods," said GNCCI Vice
President W.A. Krofah, "they blatantly reject prices
declared on goods by importers and put what they feel is
the right price without explanation." (B&FT)
Insecticides against Malaria
Ghana's fight against malaria is likely to receive a major
boost if plans to set up a factory to produce an
insecticide that kills the eggs of mosquitoes goes
forward. The government is currently in discussions with
Cuban biotech firm Labiofam to establish a chemical
plant in Ghana. The plant would produce an insecticide
known as biolarvicide, which is dispersed in mosquito
breeding areas and kills the eggs before they hatch.
(The Ghanaian Times)
Ecobank Offers Shares Seeking to Raise 91
Billion Cedis
Ecobank Ghana is seeking to raise some 91 billion cedis
through the sale of 8,275,000 ordinary shares in an
effort to support the bank's branch expansion and
product development initiatives. The move will allow
institutional and individual investors to buy into the
company. "For the past 16 years we have been active
part of Africa's multinational banking group that has
grown steadily and consistently registering a strong
presence in the banking industry," said Ecobank Gana
Managing Director Samuel Ashittey. "Inviting wider
participation in its capital from investors across the
world, Ecobank has given further expression to the
dream of the founding fathers of ECOWAS to create a
unique world class multinational banking institution."
(B&FT, Business Week)

Newsletter June 2006 Page 7 of 8
IFC Makes a Record USD30 Million Investment
in Ghana’s Financial Sector
The International
Finance Corporation,
the private sector arm
of the World Bank
Group, has signed
an agreement to provide an eight-year loan of USD30
million to Barclays Bank of Ghana Limited, one of
Ghana’s leading banks. This loan, the largest IFC
investment in the financial sector in Ghana to date, will
provide Barclays Ghana with much-needed term foreign
currency funding to meet the rapidly growing demand for
term financing in one of the most promising economies
in West Africa. The loan will help the bank meet the
financing needs of its corporate clients as well as those
of small and medium enterprises - a vital engine of
economic growth in Ghana. "One of our main objectives
in Ghana is to deepen financial intermediation and
facilitate the private sectors access to financing from
local financial institutions like Barclays Ghana,” said
Richard Ranken, IFC’s director of the Sub-Saharan
Africa Department. “The IFC loan, which will support the
development of export-oriented companies and small
and medium enterprises, has the potential to increase
the contributions of these businesses to the Ghanaian
economy.” (IFC Press Release)
Two Mining Firms Join USAID to Improve
Operations, Communities
Goldfields Ghana, Newmont Ghana Gold Limited, and
the United States Agency for International Development
recently signed a memorandum of understanding to form
a Ghana Responsive Mining Alliance. The aims of the
group will be to build stronger local governance
structures to manage and sustain economic growth,
improve the economic conditions of mining-affected
communities, and establish a best-practice guide on how
to conduct social and environmentally friendly mining
operations in the country. The alliance will focus its
efforts in the mining areas of Asutifi District. (Bus. Week)
Company News in Brief
Unique Trust Financial Services posted a profit after
tax of 20.3 billion cedis for 2005, consolidating the
company's position as the number one non-bank
financial institution in the country (B&FT)
Newmont's Mining Corporation's first-quarter earnings
rose to USD213 million, compared to USD85 million it
earned during the same period last year, in part due to
record-breaking prices for gold.(B&FT)
Benso Oil Palm Plantation (BOPP) has been forced to
defer payment of dividends to shareholders due to a
drop in the world market price for Crude Palm Oil, which
resulted in an operational loss of 8 billion cedis. (B&FT,
Daily Graphic)
State Insurance Company's (SIC) generated over 363
billion cedis in 2005, with its life insurance division
making up 43 percent, or 62 billion cedis, of that. (B&FT)
The 10th West African Information and
Communication Technology Conference (AITEC)
was recently held in Accra, drawing more than 38 ICT
firms. The conference theme was "Using ICT as a Tool
for Information and Knowledge Management." (Business
Week)
The Ghana Commercial Bank will spend USD20
million to finance oil importation, refining and distribution
this year, as one of its core operations. Last year the
bank spent USD5 million to finance oil imports. (B&FT)
Aluworks Limited has signed a USD6.5 million
agreement with INCO of Spain for the supply of a coal
coating line. The project is expected to be operational in
2007. (Daily Graphic)
Africa Online is set to launch a wireless access solution
into Ghana under the name InfiNet. InfiNet is a highspeed
wireless broadband internet service that will give
Africa Online's customers access to cutting edge
technologies. (Daily Graphic)
International News
Spring in the Air for Germany as Jobless Total
Falls
The German
dole queues
shrank in May
as a result of
the usual spring
pickup in the
labor market
and also in
response to
burgeoning
recovery in the eurozone's biggest economy, according
to data recently released by the Federal Labor Agency.
The jobless data, combined with separate statistics
showing a strong rise in retail sales in April, suggested
that the long-awaited economic recovery in Germany
has finally become self-sustaining, analysts said.
Unemployment usually improves in the spring months as
the warmer weather allows companies in sectors such
as the construction industry to hire more people. (DW)
Euro Interest Rates Rise to 2.75 Percent
The European Central Bank (ECB) has voted to raise
eurozone interest rates by one quarter of a percent to
2.75 percent, a move that has been widely expected.
There had been some speculation that the ECB would
go for a 0.5 percent rise, but analysts agreed that recent
market volatility made it settle for 0.25 percent.
"The conditions are in place for growth in the euro area,
remaining close to its potential rate, despite the impact
of the rise of oil prices," said ECB President Jean-
Claude Trichet. Analysts currently expect eurozone
interest rates to rise to 3.25% by the end of the year.
(BBC)

Newsletter June 2006 Page 8 of 8
Airbus Desperate for Engineers
European air-plane manufac-turer Airbus has
complained that production is too slow because the
company can't find enough engineers. Airbus said it
can't find enough help for production in Hamburg, “an
astonishing statement” writes Deutsche Welle, in a
country with 4.5 million people unemployed. The aviation
giant said it planned to hire 1,250 new employees this
year but so far only filled 650 positions because it can't
find enough engineers in Germany. "We are
encountering shortages when it comes to engineers,"
Airbus Germany chief Gerhard Puttfarcken told Die Welt
newspaper. "But we are surprised how little flexibility
there is in Germany. Some people refuse to move from
southern to northern Germany." He added that the
company hoped to hire from the Hamburg area but is
now interviewing in England, Italy, Spain and Sweden to
make up for Germany's engineer shortage. Airbus says
it needs more
staff to increase
production from
30 planes a
month in 2006 to
34 by 2008
because
customers have
complained about
long waits for
orders to be filled.
(DW)
Fund to Spur African Investment
Business and political leaders in Africa have launched a
USD550m fund to promote investment in on the
continent. The fund - the Investment Climate Facility
(ICF) - aims to breakdown barriers to business in Africa.
The goals of the fund include accelerating business
registration, improving customs regulation and securing
property rights. The fund was launched at the World
Economic Forum in Cape Town. "We will be able to
show that Africa is ready to prepare a climate that is
favourable for investment," said Benjamin Mkapa,
Tanzania's former president and the fund's co-chair.
Firms that are backing the fund include Anglo American,
Royal Dutch/Shell, Unilever and SAB Miller. (BBC)
China Looking Increasingly to Africa for Oil,
Trade
African trade with China is here to stay, reports the
Business & Financial Times. From 2000 to 2005, China's
total trade with Africa more than tripled, growing from
410.8 billion to USD37 billion. China is now the third
largest trading partner on the continent, behind the
United States and France. And with China's growing
need for oil - it is now the second largest importer on the
planet - trade related to that commodity is sure to
increase. China currently buys 28 percent of its oil from
Africa, chiefly Angola, Sudan and the Congo. China is
now looking to West Africa for oil as well. In January it
obtained an offshore deal with Nigeria worth USD2.3
billion and is considering USD7 billion of additional
investment there. (B&FT)
BASF Secures Majority Stake in Engelhard
Share Capital
BASF, the
world's leading
chemicals maker,
said that it
had secured a
stake of 89
percent in US
chemical catalysts
specialist
Engelhard after
both sides
agreed on the
terms of an amicable takeover. "This is a special day for
both BASF and Engelhard," BASF chairman Juergen
Hambrecht said. "With the acquisition of the majority of
the shares and the expected closing of our transaction
shortly, BASF can now begin with the integration in
order to create a leading provider worldwide in the
dynamically growing catalyst market," Hambrecht said.
"It will strengthen BASF's profitable growth rate." The
USD5.1 billion takeover deal is the biggest in BASF's
141-year history. (DW/AFP)
Pay-As-You-Go Computer Systems Could Go
Worldwide
“Third World computing innovations may soon be
available in the developed world,” writes Spiegel Online.
The computer of the future will be like a pet, “always
wanting to be fed -- not unlike an oversized
Tamagotchi.” The world's next bestselling computer
could actually work like that, according to the Microsoft
Corporation.
"Flexgo" is a new payment system and is intended to
make Windows affordable for the non-rich in developing
countries. The Internet computer works just like a
prepaid mobile phone. Subsidies help keep the price of
the new machine low, so that it can be sold for only
about USD300 -- about half the normal price. Using the
computer, however, costs money, which the user pays a
little at a time, by means of prepaid cards. Eventually,
the computer belongs to the customer -- provided the
payments have been punctual. Those who don't pay are
punished. The computer simply switches itself off. For
now, Flexgo computers can be purchased only in Brazil
but Mexico, Russia,
India and China are set to follow in the coming months.
(Spiegel Online)
Regional Inflation and Economic Growth Show
Little Movement - IMF
The International Monetary Fund's new report, the IMF
Regional Economic Outlook 2006 survey, predicts that
the overall inflation rate for sub-Saharan Africa will close
at 11.6 percent for 2006, slightly higher than the 10.7
percent rate it saw in 2005. The report attributes the rise
to higher oil prices. The report also projects a 5.3
percent growth rate for the region, which represents no
change from 2005, but which falls well short of the 7
percent needed to halve poverty in the region by 2015.
(B&FT)