Business in Ghana

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Archive for December, 2011

Chinese Money, The New Safety Net

Posted by Business in Ghana on December 31, 2011

By Sydney Casely-Hayford, Sydney@bizghana.com

Two weeks on 11th December, I made the argument that Government had no choice than to raise fuel prices. https://thenewghanaian.wordpress.com/2011/12/11/expect-fuel-price-hike-soon/

I also said this would happen after Christmas or in the New Year and I predicted at least a 15% hike.  I was spot on.  December 29th, Government announced 15% increases in petroleum prices, except for Kerosene and Premix.  Both these subsidized fuels are “political fuels” used to stave off the inevitable rebellion by the poor but radical fisher folk. Read the rest of this entry »

Posted in Financial Services, Sydney Casely-Hayford | Tagged: , , , , , , | Leave a Comment »

Ghanas Mining Taxes: Are they New and Adequate?

Posted by Business in Ghana on December 17, 2011

By Alhassan Atta-Quayson, Third World Network  Africa

Ghanas 2012 National Budget Statement and Economic Policy proposed, among others, to bring the following changes to mining operations in the country: increase corporate tax rate from 25% to 35%; install a windfall tax of 10%; and implement a uniform regime for capital allowance of 20% for five years. It also sought to review the principle of ring-fencing to prevent companies undertaking a series of projects from deducting costs from new projects against profitable ventures yielding taxable income. This was commended by the National Coalition on Mining and the Ghana Mineworkers Union as part of steps urgently needed to improve the contribution of the sector to the economy and people of Ghana. However the Chamber of Mines have gone on the offensive, indicating that the mining sector is already over-taxed and such initiatives are only inimical to their operations. But are these taxes really new as the industry would want Ghanaians to believe and more importantly adequate in ensuring equitable distribution of Ghanas mineral wealth? I offer my opinion Read the rest of this entry »

Posted in Trade and Industry, Uncategorized | Tagged: , , , | 1 Comment »

THE WEIJA DAM OBITUARY

Posted by Business in Ghana on December 16, 2011

By Joshua Awuku-Apaw, Executive Director, Earth Service,   Joshua.awukuapaw@yahoo.com

The Weija Dam, perhaps the second largest water reservoir in the country after the Volta reservoir is on its way to extinction. According to experts, the rate at which encroachment and pollution are taking over the lake, in less than 10 years the lake will belong to history and can only be compared to the infamous korle lagoon in Accra.

The dam was constructed in 1978 (construction began in 1974) by an Italian company, Messrs Tahi. It is said to be the second urban water system to be constructed in Ghana, after the Birimso in Cape Coast. The lake is formed over the Densu River in the Ga South Municipality travelling a distance of about 116 kilometres from the Atiwa mountains where it takes its source. The river traverses through three regions: Eastern, Central and Greater Accra where it enters the sea at Bortianor in the Ga Municipality. The Weija lake covers an area of about 9,000 sq. hectares and serves over 2.5 million people in Accra East and Accra West. It has many communities and villages surrounding it. There are islands in it as well. Read the rest of this entry »

Posted in Social Services, Uncategorized | Tagged: , , , | 5 Comments »

Nigerian Entrepreneur defies experience to succeed with rice in Ghana

Posted by Business in Ghana on December 14, 2011

By William Wallis

Borrowed from the Financial Times for Discerning Ghanaians


Nigerian-born Toks Abimbola landed in Ghana as he might have done in his previous incarnation as an investment banker: with hand luggage and a room at the Holiday Inn in Accra.
Less than two years later he, his business partner, and the investors backing their start-up, have become the largest commercial rice farmers in the country, with 500 hectares of land under cultivation and another 4,500 hectares still to plant. Read the rest of this entry »

Posted in Agriculture, Uncategorized | Tagged: , , | 2 Comments »

Expect Fuel Price Hike Soon

Posted by Business in Ghana on December 11, 2011

By Sydney Caasely-Hayford, Sydney@bizghana.com

A recent decision by an Accra High Court could have misunderstood the use of the Ex-refinery price differential In the calculation of fuel pump prices and this may force Government to raise retail pump prices if the National Petroleum Authority (NPA) loses its appeal and Government is mandated to carry out the court order.

Simply explained, the court ruled that the ex-refinery differential used in the calculation of the fuel prices is a form of tax and must therefore have Parliamentary approval before implementation.  The detail of the case is captured in a series of articles in most Ghana media.

If you delve a little deeper into the calculation of retail pump prices made available by the NPA and in the public domain, you notice that the ex-refinery differential is used to reduce the final pump price rather than increase it.  In effect, it is a subsidy not a tax. Read the rest of this entry »

Posted in Financial Services, Sydney Casely-Hayford | Tagged: , , , , , , , | 2 Comments »