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  • Inflation drops to 15.4%

    Inflation drops to 15.4%

    Government has missed its inflation target of 13.5% as Inflation for December dropped to 15.4% from 15.5% in November 2016.

    The prices of goods and services  was fairly stable as inflation for the month went down marginally.

    This is the lowest since June 2014.

    The monthly change rate was 0.9% compared to the 0.8% recorded in November.

    The food and non-alcoholic beverages recorded a year-on-year inflation rate of 9.7%. This is 0.4% point higher than the rate recorded in November 2016.

    Five subgroups of the food and non-alcoholic beverages group recorded inflation rate higher than the group average rate of 9.7%.

    The non-food group recorded a year-on-year inflation rate of 18.2% last month compared to the 18.7% recorded for November 2016. Six subgroups recorded a year-on-year inflation rate higher than the group’s average rate of 18.2%.

    At the regional level, the year-on-year inflation rate ranged from 13.0% in the Volta Region and the Northern Regions to 18.2% in the Greater Accra Region.

    Three regions (Greater Accra, Ashanti and Brong Ahafo) recorded inflation rate above the national average of 15.4%.

    The year-on-year inflation rate for imported items was 15.7%. This was 0.5% point higher than that of locally produced items of 15.2%.

    The main price drivers for the non-food inflation rate were transport, education, recreation and culture, housing, water, electricity among others.

    The price drivers for the food inflation rate were meat and meat products, coffee, tea and cocoa, fish and sea food, mineral water among others.

    The Greater Accra recorded the highest year-on-year inflation rate of 18.2% followed by the Ashanti and Brong Ahafo Region with 15.5%. Volta and Northern regions recorded the lowest rate of 13.0%.

    Consumer Price Index (CPI) measures the change over time in the general price levels of goods and services that households acquire for the purposes of consumption, with reference to the pricing level in 2012, the base year, which has an index of 100.

  • Mauritius firm acquires Mövenpick Ambassador Hotel

    Mauritius firm acquires Mövenpick Ambassador Hotel

    A Mauritius based investment fund managed by Quantum Global Investments Africa Management Ltd., haa announced the acquisition of the Movenpick Ambassador Hotel, Accra, from Kingdom Holding Company (KHC).

    The transaction which was closed on 28 December 2016 marks the most sizable open-market hotel transaction in Sub-Saharan Africa to date.

    Complementing Quantum Global’s already significant African investment portfolio the value proposition of this transaction is underpinned by its status as one of the largest hotel and mixed use properties in West Africa occupying an exceptional position in both business and touristic segments of the African hospitality market.

    Quantum Global’s Group CEO, Jean-Claude Bastos de Morais, said: “The acquisition of the Movenpick Ambassador Hotel Accra, one of sub-Saharan Africa’s most successful hotels, is a great testament to the strength of our Hotel Fund and its growing portfolio. The hospitality industry across Africa is an indicator of the vitality and attractiveness of key locations across the continent and we look to further take advantage of those opportunities and generate value added returns for our investors.”

    Sitting on a spectacular 16 acres (6.5 hectares) site of landscaped gardens in Accra’s Central Business District, Movenpick Ambassador Hotel Accra comprises extensive food and beverage as well as conference facilities making it the largest 5-star conference hotel in Ghana.

    The property is also complemented by retail as well as office facilities that form part of a unique environment, valued by tenants as well as hotel guests.

    Adrian Leuenberger, Managing Director, Group Head of Asset Management, Quantum Global, added: “Movenpick Ambassador Hotel Accra has demonstrated outstanding growth through the highly-rated and reliable delivery of world class hospitality facilities to its international and local customers. We are delighted with this major acquisition and are looking forward to a very promising future.”

  • Alan will fail if he repeats mistakes of ‘PSIs’ – Dalex boss

    Alan will fail if he repeats mistakes of ‘PSIs’ – Dalex boss

    The Chief Executive Officer of Dalex Finance Ken Thompson has advised Trade minister-designate Alan Kyerematen not to repeat the mistakes he made with the Presidential Special initiatives (PSIs), as he prepares to take office as Trade minister.

    According to him, wrong business decisions taken by Mr. Kyerematen led to the failure of the PSIs under former President John Kufuor.

    The Presidential Special Initiatives which were signature projects of the former President are deemed to have failed with Mr. Kyerematen in charge.

    Speaking to Starr News after the official announcement of Mr. Kyerematen as incoming trade minister, Mr. Thompson said  the business community will resist any attempt to repeat the mistakes of the past.

    “…The initiatives failed because they were all led by the government and not the private sector. Which private sector man will go and put a ten million factory in Kasoa and allow it to be run down?

    “So if  Alan Kyerematen is going to come back to do what he did in the past, not only will we resist him fiercely, but they will all fail,” he stated.

    Mr. Kyerematen was named among 13 other people by President Akufo-Addo on Tuesday in the first batch of his ministerial nominees.

    The rest will be announced later today and tomorrow, Thursday January, 13.

     

  • We won’t increase fuel, ECG charges – Ken Ofori Atta

    We won’t increase fuel, ECG charges – Ken Ofori Atta

    Finance minister-designate Ken Ofori Atta has given the assurance that the Akufo-Addo-led government will not increase electricity bills anytime soon.

    According to him, the move is in fulfillment of the promise the NPP made to Ghanaians during the electioneering.

    Speaking to the media after his nomination was announced by the President, finance expert said the government will work to justify the confidence Ghanaians have reposed in them.

    “We will have to examine our energy mix and I think we’re likely going to get a little bit more from gas which will then help in giving us a chance to breath from that, so I don’t expect us to be increasing prices of fuel and ECG. We are looking actually to see how we can as we promised, bring some relief to Ghanaians”.

    Nana Akufo-Addo today announced the first batch of his ministerial nominees comprising 13 names.

    Below are details of the list of nominees

    Senior Minister designate — Yaw Osafo Marfo 

    National Security Minister designate — Albert Kan Dapaah

    Trade and Industry Minister designate — Alan Kyeremateng

    Finance Minister designate — Ken Ofori Atta

    Minister of Agriculture designate — Dr. Akoto Osei Afriyie

    Energy Minister designate — Boakye Agyarko

    Defence Minister designate — Dominic Nitiwul

    Interior Minister designate — Ambrose Dery

    Foreign Affairs Minister designate — Shirley Ayorkor Botchwey

    Attorney General Minister designate — Gloria Akuffo

    Local Government Minister designate — Hajia Alima Mahama

    Education Minister designate — Mathew Opoku Prempeh

    Health Minister designate — Kwaku Agyemang-Manu

  • UAE to invest $163bn in renewables

    UAE to invest $163bn in renewables

    The United Arab Emirates has said that it intends to invest $163bn (£134bn) in projects to generate half of the nation’s power needs from renewables.

    The major oil producing Gulf state is hoping to get close to this by 2050 and says it wants to balance economic needs against environmental goals.

    The UAE has considerable solar power potential and is eager to reduce its use of fossil fuels.

    The country ranks high in per capita greenhouse gas CO2 emissions.

    The UAE is eighth on the World Bank’s worldwide list of CO2 emissions per capita, below Qatar, Kuwait and Bahrain.

    UAE Prime Minister Sheikh Mohammed bin Rashid al-Maktoum said it is hoped that by 2050, 44% of the country’s energy needs will be provided by renewables, with 38% from gas, 12% from cleaner fossil fuel and 6% from nuclear energy.

    Writing on Twitter, he said: “The plan aims to increase usage efficiency by 40% and boost clean-energy contributions to 50%.

    “He who does not think of energy is not thinking about the future. The UAE government has made an achievement in drawing up a unified energy strategy for the country.”

    Dubai and Abu Dhabi in particular have been at the forefront of the UAE’s push to plough resources into renewables:

    • In June, Dubai announced its intention to construct a huge solar power plant scheduled to be completed by 2030
    • In 2014, Abu Dhabi opened what was hailed as the world’s largest solar power operating station
    • Firms from South Korea are also constructing four nuclear reactors near Abu Dhabi, which it is hoped will produce 1,400 megawatts by 2020

    Elsewhere, Morocco, Tunisia and Yemen pledged in November to use only renewable energy by 2050.

  • British Airways cabin crew start two-day strike

    British Airways cabin crew start two-day strike

    A two-day strike by some of BA’s cabin staff may disrupt flights at Heathrow airport on Tuesday and Wednesday.

    The strike, by 2,900 members of the Unite trade union, is in pursuit of higher pay for members of the so-called “mixed fleet”.

    Those are staff who have been recruited by BA since 2011, and who are paid what the union calls “poverty wages”.

    BA says most flights from Heathrow will not be affected, nor will any flights from Gatwick and London City airports.

    A spokesman for Unite, Oliver Richardson, said: “The ‘mixed fleet’ cabin crew are at breaking point over pay levels which are forcing many of them to take a second job or turn up to work unfit to fly.

    “With the parent company of British Airways forecasting annual profits in the region of £2.3bn, it’s clear that the UK’s national carrier can pay the people who keep us safe while we fly a decent wage,” he added.

    Stance

    Behind the scenes there has been further contact between the airline and Unite, but nothing strong enough to defuse the dispute.

    If the two-day strikes see no change in the airline’s stance the union will take stock and it could, in line with its ballot, call further strikes or other forms of industrial action.

    BA has downplayed the likely impact of the strike, saying only that a few of its Heathrow flights will be combined, so some passengers will have to fly out slightly earlier or later than planned.

    But the company has refused to increase its pay offer further in the face of the impending union action.

    A pay rise of 2% in the first year, and 2.5% in years two and three, was rejected by a vote of 7-1 among Unite members, after it was tabled shortly before Christmas.

    The union said that that increase would have left staff only £20 a month better off after tax.

    Dispute

    BA created the mixed fleet of cabin staff in the wake of a bitter and long-running dispute over pay and conditions for all cabin staff that ran from 2009 to 2011.

    The mixed fleet staff employed since then, currently about 4,500-strong, are on inferior pay and conditions to those cabin staff who were recruited in previous years.

    They fly only out of Heathrow, and on both short-haul and long-haul routes, but not in the same planes as colleagues on the legacy conditions of employment.

    Unite complains that despite the airline advertising that the mixed fleet staff are paid between £21,000 and £25,000 per year, in reality their earnings are far lower, typically starting at just over £12,000 – plus £3 an hour flying pay to cover expenses such as paying for food.

    BA disputes these figures, and insists that full-time mixed fleet cabin crew do, in reality, earn above £21,000.

    Striking staff are expected to gather at Unite’s office at Heathrow and then picket at certain points around the huge airport complex.

  • Toyota plans to invest $10bn in US

    Toyota plans to invest $10bn in US

    Japanese car giant Toyota says will invest $10bn (£8.2bn) in the US over the next five years – the latest car giant to announce major investments.

    The firm’s North America chief executive, Jim Lentz, announced the decision at the Detroit motor show.

    He said it had nothing to do with President-elect Donald Trump’s hostility to imported cars, but was part of its existing strategy.

    Mr Trump has threatened tax firms that make cars in Mexico for the US market.

    Mr Lentz said the money was going on a new headquarters in Texas and upgrades to existing US car plants.

    Earlier, BMW told the BBC that it was “absolutely” committed to a new plant in Mexico, despite Mr Trump’s opposition to such policies.

    Under fire

    BMW is spending $1bn on a plant in Mexico, while other firms are investing in the US or moving production back.

    On Sunday, Fiat Chrysler Automobiles (FCA) announced a $1bn plan to produce three Jeep models in the US.

    FCA will also move the production of a Ram pickup truck from Mexico to the US.

    Last week, Mr Trump criticised General Motors for building cars in Mexico for the US market.

    “General Motors is sending Mexican-made model of Chevy Cruze to US car dealers tax-free across border. Make in USA or pay big border tax!” he tweeted.

    He also threatened Toyota with a border tax if it went ahead with a new plant in Mexico.

    On Monday, Mr Lentz said Toyota had been planning for the Mexico plant for at least two years before announcing the move in 2015 and that it was a long-term decision.

    BMW sales and marketing director Ian Robertson told the BBC that the firm was “absolutely” committed its new plant in San Luis Potosi, which will make its 3 Series cars for sale across North America.

    He added that the company was investing $1bn in its plant in South Carolina and pointed out that BMW was the biggest exporter of cars, in terms of value, from the US.

    “I don’t think there’s any discussion that BMW is not at home in the United States. Yes we are building a plant in Mexico. Yes we built a plant in Brazil last year. Yes we are building plants in other parts of the world as our capacity increases. But that’s part of a normal strategic manufacturing direction,” Mr Robertson said.

    Job creation

    Last week Ford cancelled a $1.6bn plan to build a plant in Mexico and instead decided to expand operations in Michigan.

    Ford boss Mark Fields said the decision was partly due to falling sales of small cars and partly a “vote of confidence” in Mr Trump’s policies.

    On Sunday, FCA said it would invest in a plant in Michigan, so that it can produce two new Jeep sports utility vehicles (SUVs) and take on the production of a Ram truck, currently made in Mexico.

    Also, an Ohio plant will be retooled to make a new Jeep pickup truck.

    As a result, FCA says that 2,000 jobs will be created.

    Its announcement was the second phase of a plan, first outlined in January, to expand in the market for pickup trucks and SUVs.

  • Inesfly Africa outdoors showroom

    Inesfly Africa outdoors showroom

    Inesfly Africa Limited last Wednesday, 4th January, 2017, hosted media friends and outdoored its state of the art showroom.

    As part of stepping up its campaign against vector-borne diseases and insect-pests infestations across multi sectors including agriculture, public health and hospitality, Inesfly Africa engaged with the media, who are major stakeholders in communicating the company’s vision for Ghana and Africa.

    Briefing the media, the CEO of Inesfly Africa Limited, Michael Sjodin, emphasised that Inesfly has a range of products that are meant to solve a vast range of insect-pest related infestations, however complicated they are.

    “We have a fantastic product range that can help eradicate malaria and other infestations. Today we’ve been focusing a lot on malaria because every day in Ghana 35000 people get diagnosed with malaria and as you know every minute in Africa 5 children die due to malaria,” he said.

    The Ghana Health Service has since 1950 been trying to fight malaria which it says is one of the three leading causes of death in Ghana. With the Inesfly range of products including the insecticide paints, floor cleaners, EM House, Bed Bug Solution, among others, Inesfly Africa Limited is certain to win the battle against insect-pests infestations.

    As part of the engagement, the media also toured the state of the art showroom of the company and its line of products.

    Speaking on safety, the Chief Technical Officer at Inesfly Africa Limited, Jose Javier Gracenea, remarked that Inesfly range of products are 100% safe to both humans and pets due to the microencapsulation technology.

    “The microencapsulation technology allows for a slow and gradual release of active ingredients which are of no consequence to humans and pets. This mechanism ensures a minimal release of insecticides targeted at just insect-pests”, he explained.

    With certifications from the World Health Organisation (WHO), Food and Drugs Authority (FDA) and the Ghana Standards Authority (GSA) coupled with numerous research publications, Inesfly Africa Limited is unique and is determined to continue to be the lead solutions provider regarding insect-pests infestations in our homes, the field of agriculture, hospitality, and public health, among others.

  • We’ll make sure Ghanaians are better off – Gyan Baffour

    We’ll make sure Ghanaians are better off – Gyan Baffour

    The Member of Parliament for Wenchi, Prof. Gyan Baffour, has maintained that the majority in Parliament is ready to help push through the agenda of the new government in order to make the lives of Ghanaians better.

    According to Prof. Baffour, they are fully aware of the high expectations from Ghanaian populace and he is convinced that they will be able to deliver.

    “We will make sure that we deliver. We will make sure the signs are visible and things that were not done properly will be done properly and I think Ghanaians will be proud of the 7th Parliament.” he told B&FT in an exclusive interview.

    Akufo-Addo defeated incumbent president John Dramani Mahama in elections last month and assumed office on Saturday, pledging to cut taxes to boost the ailing economy while protecting the public purse

    The New Patriotic Party(NPP) now make up the majority in Parliament with 169 members as against the minority National Democratic Party(NDC) 106.

    President Akufo-Addo needs to act fast to deliver on his campaign promise to create jobs, restore rapid growth, build a dam in every village and a factory in every district if he is to satisfy an electorate eager for change.

  • Samsung quizzed over corruption scandal

    Samsung quizzed over corruption scandal

    Two senior Samsung executives have been questioned as part of the corruption probe surrounding South Korea’s impeached president, Park Geun-hye.

    The firm is accused of giving large donations to non-profit foundations operated by Choi Soon-sil, a close confidante of Ms Park.

    The donations were allegedly given in exchange for political support of a controversial merger.

    Ms Choi has been charged with coercion and attempted fraud.

    According to South Korea’s Yonhap news agency, Choi Gee-sung, a Samsung vice chairman, and Chang Choong-ki, a president at the group, were being interviewed on Monday by special prosecutors about the corruption allegations.

    It was reported the pair were being treated as witnesses, rather than being suspected of any wrongdoing.

    The claims circle around a merger between the electronics giant’s construction arm, Samsung C&T, and an affiliate firm, Cheil Industries.

    The deal went through despite significant opposition from shareholders, who said it would hurt minority shareholders while benefiting the family of Samsung’s group owner Lee Kun-hee.

    Horse funding

    South Korea’s National Pension Service (NPS), which owns stakes in both companies, sealed the deal by voting in favour of it and the head of the NPS has since been arrested.

    But prosecutors also allege that Samsung gave €2.8m euros ($3.1m; £2.5m) to a company co-owned by Ms Choi and her daughter, in return for Ms Park’s support for the deal.

    In a parliamentary session last month, senior executives of Samsung admitted the firm gave money to help the equestrian career of Ms Choi’s daughter, Chung Yoo-ra.

    Samsung’s de-facto head, Lee Jae-yong confirmed that the company had paid for a horse for Ms Chung – though to be worth around $850,000 – saying he regretted the move.

    Powers stripped

    A total of eight firms have so far admitted donating funds linked to President Park Geun-hye, but deny seeking favours.

    Politicians voted on 9 December to impeach President Park – a decision South Korea’s constitutional court has six months to uphold or overturn. Until then she remains formally president but stripped of her powers, which are handed to the prime minister, a presidential appointee.

    Ms Park denies wrongdoing but has apologised for the way she managed her relationship with Ms Choi, who also denies committing criminal offences.