Category: Finance

Accra,– Melcom Group of Companies, the diverse business conglomerate, has announced its entry into the Quick Service Restaurant (QSR) business by acquiring the International Franchise Rights for Pizza Hut in Ghana.

A statement issued by the Melcom Group of Companies, copied to the Ghana News Agency, said the franchise would be operated by the group company – Skyline International Limited.

“Pizza Hut is globally recognised as the largest Pizza Chain, with more than 18,000 restaurants in over 100 countries worldwide, and will soon be relaunched in Ghana,” it stated.

It said Melcom Limited (Melcom) had a network of 50 retail outlets and was continuing to grow at a rapid rate, adapting to meet the needs of its customers across the country.

It noted that it made it possible to bring shopping to the doorstep of Ghanaians nationwide, making Melcom “Where Ghana Shops”.

The statement said, with the introduction of Pizza Hut, it aimed to be the preferred destination for families to have the “World’s Best Pizza”.

The Group’s Board of Directors commended, “We are extremely excited and optimistic about our partnership with Pizza Hut in Ghana. This new area of business takes our vision of being a diversified group one step ahead and creates more employment opportunities alongside our expansion of the existing core retail business”.

“We will announce the relaunch of the brand very soon and scale up considerably across the country in the next couple of years.”

Mr Ewan Davenport, Managing Director of Pizza Hut Middle East, Turkey and Africa, said: “Pizza Hut International is proud to partner with the Melcom Group to re-open Pizza Hut in Ghana”.

“We are excited at the prospect of our new partnership and have no doubt that we will grow and flourish. We look forward to many more years of proudly serving the best pizza in the world to the wonderful people of Ghana”.

Pizza Hut, a subsidiary of Yum! Brands, Inc. (NYSE: YUM), has more restaurant locations in the world than any other pizza company.

Founded in 1958 in Wichita, Kan., Pizza Hut operates approximately 18,000 restaurants in more than 100 countries.

Melcom Group of Companies is a business conglomerate with diverse business interests in organised retail, modern trade, plastic manufacturing, electronics assembly and travel.

Its flagship brand, Melcom Limited, is the largest organised retail in West Africa with over 50 retail stores nationwide.

Founded in 1989, it has been named one of the top business houses in West Africa for the last 32 years.

Source: Ghana News Agency

Accra,– Mr Sampson Akligoh, Acting Director, Financial Sector Division, Ministry of Finance, says the ownership, governance and operational structures have been carefully designed to ensure that Development Bank, Ghana (DBG) is managed professionally.

He said this would ensure that the DBG successfully carried out its economic transformational mandate while remaining financially sustainable.

Mr Akligoh was speaking at a Development Dialogue organised by lnstitute of Statistical, Social and Economic Research (ISSER) on the topic: “National Development Banks and Sustainable Financing in Ghana” in Accra.

He said the governance structure would enable DBG to pursue its mandate in a professional manner, fulfilling its development mandate while maintaining financial viability and giving comfort to shareholders and financiers of the bank.

He said the robust design features of DBG would be reinforced by the new Development Finance Institutions Act 2020 (1032), which empowered the Bank of Ghana to exercise strong regulatory and supervisory oversight.

He said the German Government through its development bank, (KfW), was investing in DBG and providing generous Technical Assistance for the set-up and initial running of DBG.

The KfW is one of the biggest, most successful, and most respected national development banks in the world, having been awarded the World’s Safest Bank 2020 and for the last 11 consecutive years.

“We are aiming to establish DBG by end-2021 with an initial capitalization of around US$250million from the Government of Ghana (US$200million has been paid as at May 2021), while the World Bank also plans to support with US$250million,” he said.

The Acting Director said KfW also planned to support with EUR 46. 5 million (Tier 2 capital), plus Technical Assistance (EUR 3 million) together with French government also planning through Agence France de Development with initial support through partnership on Guarantees and African Development Bank supporting with a US$40million grant.

He said in addition to the association with KfW, the design of DBG had benefitted from deep and extensive study of development bank experiences worldwide through the World Bank, European Investment Bank, Agence France de Development (AFD), and the African Development Bank.

Mr Akligoh said DBG, as a wholesale and non-deposit taking bank required no branch network and a very small staff.

It will therefore be very costly – financially and in terms of closure of branches and employment loss to try to convert adb or NIB into a viable modern development bank.

He said the advantage of the greenfield approach was that one got to start from a clean slate, with no legacy financial, governance and other issues and “this allows the country to focus on the future and move straight into setting up DBG equipped with modern and sound design principles.”

“The Governance structure of DBG ensures the independence of the Board and Management to run professionally to effectively pursue its development mandate while remaining financially sustainable,” he said.

Mr Akligoh said government, based on the recommendation of a Task Force of experts, had decided to establish DBG to help address the market failures in the Ghanaian credit markets, and thereby increase the availability of medium and long-term finance to enable Ghanaian businesses to facilitate economic transformation and job creation.

The primary Focus Areas of the Bank will be Agribusiness; with a focus on off-farm value-chain activities, Manufacturing, ICT, software, and allied services, including Business-Process Outsourcing, and Tourism and Homeownership Mortgage Finance.

Professor Joshua Abor, University of Ghana Business School, said the National Development Bank would create jobs to absorb groups from the labour market and serve as critical tool in supporting proactive growth strategies.

He said it would also mobilise private sector finance to fill the funding gap in order to achieve the sustainable development goals.

He said the Development Banks complement the efforts of the multinational, regional and bilateral development finance institutions in financing the gap by providing long-term finance to improve sectors that spur growth and development.

Source: Ghana News Agency

Tema,- Mrs Cynthia Kwarteng Tufuor, Tema Area Manager, SIC Insurance PLC, has said the increase in road crashes is putting enormous burden on insurance companies, which pay huge sums of compensation to either victims or their dependants.

Mrs Tufuor, who also has oversight responsibilities over parts of Volta and Eastern Regions, was speaking on the platform of the Ghana News Agency Tema Regional Office Road Safety Campaign with the Tema Regional Motor Transport and Traffic Department (MTTD) of the Ghana Police Service.

The campaign seeks to create awareness among road users to honour their respective responsibilities to keep the road safe.

Drivers, especially, are being sensitised to respect road safety regulations.

Mrs Tufuor, commended the GNA-Tema Road Safety Campaign, explaining that already road crashes were a burden on insurance companies, families, and the State as a whole.

Therefore, any activity geared towards reducing the carnage on the roads was worthy.

She said the improvement in road safety was beneficial to the public and the insurance industry because enough savings would be made to guarantee the health and safety of the property of insured victims.

Reducing the number and severity of crashes were generally beneficial to all citizens, while it reduced the volume of claims and compensations paid by insurance firms.

She said SIC Insurance PLC was taking a leadership role to reduce the cause of road safety, therefore, joining the GNA-Tema Regional Office for the Road Safety Campaign would be healthy for the country.

Mrs Tufuor said the company had a transparent claims management procedure for all their clients.

Miss Cynthia Twumasi, Deputy Area Manager, SIC Insurance PLC, debunked the notion that some insurance companies cheated their clients, stating that most of those issues were based on the wrong notion and misunderstanding of the type of insurance policy cover provided.

She said it was important for potential clients to understand clearly, the terms and conditions of the insurance cover they purchased, so they would be compensated appropriately.

She said SIC Insurance PLC paid its claims in a timeous manner, explaining that insurance companies were regulated by the National Insurance Commission which supervised, regulated and controlled the business of insurance in the country.

She, therefore, advised persons whose legitimate claims were not fully honoured by an insurance company to seek appropriate redress through the Commission.

On the need for insurance companies to join the GNA-Tema Road Safety Campaign, Miss Twumasi explained that the benefits from saving lives were greater than reducing the claims paid to victims of crashes.

Mr Francis Ameyibor, GNA Tema Regional Manager, said that the GNA-Tema Regional Office was mobilising key stakeholders, through the road safety campaign, to educate the people to minimise the fatalities in Tema, and the country as a whole.

He said: “Data on road crashes is alarming and we must all in our small ways begin to advocate road safety – we must go and come back home safely”.

Source: Ghana News Agency

Accra, The Africa World Trade Network (AWTN) has signed a partnership agreement with the Africa Continental Free Trade Area (AfCFTA) Secretariat to accelerate intra-regional trade and investment through exhibitions, meetings, and events. The partnership seeks to mobilise private sector actors across Africa to drive the attainment of strategic objectives that underpin the AfCFTA Agreement.

It is also to work towards three common objectives that support continental trade and investment promotions across Africa and promote the overall objectives of the AfCFTA Agreement.

The objectives include co-organising and hosting forums that support continental trade and investment promotions in Africa and promote the overall objectives of the AfCFTA Agreement; supporting the growth and development of Africa’s commercial community and collaborating on matters of common interest in the pursuance of enhancing intra-trade on the continent, a statement issued by the Secretariat and copied to the Ghana News Agency in Accra, said.

Mr Otwasuom Osae Nyampong VI, Board Chair of AWTN in a statement, said “Intra-regional trade promises a real win for Africa, and the AfCFTA Secretariat is at the forefront of this significant progress in the continent’s history.”

He described the AfCFTA initiative as a second Pan- African victory after independence.

“AWTN on its part has recognised this watershed moment and will act as a catalyst to boost trade relations among member states and businesses across the continent,” he added.

In the partnership, the Board Chair said AWTN committed to initiate and escalate innovative programmes to mobilise investment opportunities that would enhance sustainable trade across Africa as envisioned by AfCFTA.

Mr Wamkele Mene, Secretary-General of the AfCFTA Secretariat, reiterated his commitment to ensuring that AfCFTA was effectively implemented for shared and inclusive economic growth.

He said: “After many years of talks and negotiations, we are now focused on rolling out the AfCFTA across the continent,“ and identified young Africans and women in the trade as segments of society that must benefit from the implementation of the Agreement.
“It is Africa’s time, and through the AfCFTA we have a unique opportunity to turn a new page on Africa’s economic development and growth trajectory,” Mr Mene added.

The Secretary-General underscored the need to enhance the platforms of engagement between the public and private sectors, indicating that it was for that reason that partnerships between the private sector, government, and developmental institutions were needed to help collaborate and find solutions to common challenges.

AfCFTA operates a continental system of trade rules, it acts as a platform for negotiating trade protocols, facilitates the settlement of disputes between State Parties, and monitors the implementation of the AfCFTA Agreement.

Currently, 54 countries have signed on to the AfCFTA with 37 countries as State Parties by the deposit of their instruments of ratification of the Agreement.

AWTN’s partnership with AfCFTA Secretariat is premised on the continent’s developmental agenda and speaks to the new “Africa Beyond Aid Agenda.”

Like the AfCFTA Secretariat, AWTN is headquartered in Accra and has been recognised as a beacon for transformative development in the sub-region.

 

Source: Ghana News Agency

Mutual Fund Investments

Collective investment schemes are investment vehicles that allow investors with similar objectives to pool their funds together with the aim of investing the funds for an objective specified in the scheme particulars also known as the prospectus.

The common interest of the investors demonstrated in the scheme particulars they have signed on is reflective of their risk tolerance level and the expected return from the investment. Mutual Funds and Units Trusts are the two main types of collective investment schemes available to investors in Ghana.

Despite the underlying structural difference in operations, both collective investment schemes are similar in the overall concept of providing a structured investment product, professional management, and approval by the regulatory authorities.

Mutual funds are dominant in the Ghanaian collective investment scheme space with various investment strategies to meet the investment needs of the various shareholders of the fund. With the new directive of retail investors to invest in collective investment schemes, the mutual fund market provides great prospects.

The operations of a mutual fund require the fund to be incorporated as a company with the scheme particulars serving as the regulation to the fund. Like any company, the shareholders appoint the board of directors, and the board contracts the various service providers to work towards effective management of the fund in line with the scheme particulars.

The key service providers appointed are fund managers and custodians licensed by the Securities and Exchange Commission of Ghana. The shareholders appoint the auditors to audit the funds’ accounts and report to the shareholders. The investor gains a return on his or her investment if the value of the share held increases.

The price of the share of a mutual fund is ascertained using the Net Asset Value (NAV) of the mutual fund on a daily basis or on such other basis as prescribed in the scheme particulars.

Mutual funds have been available on the Ghanaian investment market for the past two decades with market leaders in the space being Databank EPACK, Databank MFUND, SAS Fortune Fund, SAS Midas Fund among others. In 2019, the EcoCapital Prime Fund was launched as an addition to the mutual fund products available in the Ghanaian Securities Market.

Spotlight: EcoCapital Prime Fund

EcoCapital Prime Fund is an open-ended money market mutual fund with the objective of maximizing current income to the extent consistent with the preservation of capital and maintenance of liquidity to meet short-term needs while enhancing shareholders’ wealth to meet medium to long term financial goals.

The prospectus of the fund allows for investments in Government Treasuries and related debt instruments, Fixed Deposits, Commercial Papers, and other permissible short-term instruments. The fund is managed by EcoCapital Investment Management Limited with Guarantee Trust Bank (Ghana) Limited as the custodian.

During the Initial Public Offer of the Fund in August 2019, the fund raised a total asset of GHS 1.3 million and has grown steadily to GHS 2 million by December 2019 and GHS 5 million by June 2021. The growth in the size of the fund is also translated into the overall improved returns of the fund against its benchmark and other market players.

The fund since inception has returned 38% with an average annual return of 17%. The fund looks to improve its performance given improved return in the 2021 financial year and looks to end the year on a record high given the Year-to-date return as of June 2021 of 16.34%. The fund is an open-ended mutual fund that is available to the general public.

It remains evident that mutual funds provide a secured and well-regulated investment alternative for the investing public. With the presence of board and regulatory oversight, professional advisors, and a well-laid down prospectus to guide investment, investors can be certain of the investment tools being invested in. Investment is key to financial independence and collective investment schemes could be the game-changer.

 

Source: Ghana Web

The Africa World Trade Network (AWTN) has partnered with the Africa Continental Free Trade Area (AfCFTA) Secretariat to accelerate intra-regional trade and investment through exhibitions, meetings, and events.

The partnership seeks to mobilize private sector actors across Africa to drive the attainment of strategic objectives that underpin the Africa Continental Free Trade Area Agreement.

The partnership between AWTN and the AfCFTA Secretariat is meant to work towards three common objectives that support continental trade and investment promotions across Africa and promote the overall objectives of the Africa Continental Free Trade Area Agreement:

To co-organize and host forums that support continental trade and investment promotions in Africa and promote the overall objectives of the AfCFTA Agreement
To support the growth and development of Africa’s commercial community; and
To collaborate on matters of common interest, in the pursuance of enhancing intra-trade in the Continent

Speaking at the signing ceremony, Board Chair of AWTN, Otwasuom Osae Nyampong VI, said: “Intra-regional trade promises a real win for Africa, and the AfCFTA Secretariat is at the forefront of this significant progress in the continent’s history; it is a second Pan-African victory after Independence. AWTN on its part has recognized this watershed moment and will act as a catalyst to boost trade relations among member states and businesses across the continent.”

Otwasuom Osae Nyampong VI emphasized: “Like the AfCFTA Secretariat, AWTN is headquartered in Accra, which has been recognized as a beacon for transformative development in the sub-region. In this partnership, AWTN commits to initiate and escalate innovative programs to mobilize investment opportunities that will enhance sustainable trade across Africa as envisioned by the AfCFTA.”

On his part, His Excellency Wamkele Mene – Secretary-General of the AfCFTA Secretariat, reiterated his commitment to ensuring that the AfCFTA is effectively implemented such that there is shared and inclusive economic growth.

He underscored “after many years of talks and negotiations, we are now focussed on rolling out the AfCFTA across the continent”, and identified young Africans and women in the trade as segments of society that must benefit from the implementation of the Agreement. Secretary-General Mene further noted, “it is Africa’s time, and through the AfCFTA we have a unique opportunity to turn a new page on Africa’s economic development and growth trajectory”.

His Excellency Wamkele Mene further articulated the need to enhance the platforms of engagement between the public and private sectors. He highlighted “It is for this reason that partnerships such as this between the private sector, government, and developmental institutions are needed to help collaborate and find solutions to our daily challenges.”

About the AfCFTA and the Secretariat

The African Continental Free Trade Area (AfCFTA) Secretariat is the sole supranational organization in the continent, legally established and mandated to handle the rules of trade between African countries. At the core is the implementation of the Agreement Establishing the AfCFTA, negotiated, signed, and ratified by the State Parties.

The AfCFTA operates a continental system of trade rules, it acts as a platform for negotiating trade protocols, facilitates the settlement of disputes between State Parties and it monitors the implementation of the AfCFTA Agreement.

The Agreement Establishing the AfCFTA was signed at the 10th Extraordinary Session of the Assembly of the Heads of State and Government of the African Union in Kigali – Rwanda in March 2018. With 55 countries, the AfCFTA will be the largest Free Trade Area (FTA) in the world in terms of membership, covering a market of 1.3 billion people with a combined Gross Domestic Product (GDP) of US$3.4 trillion (2020).

The AfCFTA Agreement entered into force on 30 May 2019 – 30 days after the deposit of the twenty-second (22nd) instrument of ratification with the Chairperson of the African Union Commission – the designated Depositary for this purpose.

To date, fifty-four (54) out of fifty-five (55) countries have signed the Agreement Establishing the AfCFTA and thirty-seven (37) countries are State Parties by virtue of the deposit of their instruments of ratification of the Agreement.

Trading under the AfCFTA commenced on 1 January 2021 in line with the decisions of the 13th Extraordinary Session of the Assembly of Heads of State and Government of the African Union that was held virtually in December 2020.

 

Source: Ghana Web

Shopping for a mortgage can be unnerving without the proper information and guidance from mortgage experts. Fortunately, it gets much simpler when you understand the basic ways of categorizing mortgages.

A mortgage, in many ways, is a lot like shopping for a home – there are different options that cater to different needs. Mortgages come in many different types and can be structured in many different ways and it is always advisable for mortgage shoppers to find the one that fits their financial priorities.

While all mortgages share the same purpose – funding the purchase of property – they each come with different advantages, disadvantages, and unique terms. Ultimately the type of home loan you choose will have a tremendous impact on your future mortgage payments and overall financial health.

Mortgage structures are numerous and varied and depend on the financial institution offering the mortgage. In this article, we discuss some mortgage structures that are peculiar to the Ghanaian market and specifically, Stanbic Bank.

Home Purchase

The first option, home purchase, is the most common option on the Ghanaian market. It involves a lending institution providing funds to a home buyer for the acquisition/purchase of an already built home.

Under this arrangement, the lending institution holds the title to the property and releases it to the homeowner only after the completion of the mortgage payment. In a case of a default, the lending institution has a right to repossess the property and sell it to pay off the mortgage.

Developer Construction Financing

The second option is what is referred to as developer construction financing. This mortgage financing structure involves financing a project from start to finish. The lending institution disburses funds at different stages of the construction process until the property is completed. Off-plan financing is possible under this option. Upon completion, the cost of the mortgage is spread over a number of years for the homeowner to pay.

Equity Release

The third option is what is commonly referred to as equity release, which involves a bank paying a homeowner the value of an existing property so the homeowner can buy another home or use the proceeds for other purposes. An equity release enables you to unlock the value in your existing property by taking a loan and using the cash released for a variety of personal needs, including the purchase of another home or prime land, or home expansion among others.

Mortgage Refinancing

Refinancing a mortgage simply means allowing a new bank to take over your mortgage. It involves a lending institution paying off your old mortgage exposure from another institution. Most mortgage shoppers choose to refinance so they can lower their interest or shorten their payment term or take advantage of turning some of the equity they have earned on their home into cash.

With this option, after the valuation of the property, the exposure is paid off and the balance is given to the client to be used for any other purpose.

Home Expansion Financing

Home expansion financing, as the name connotes, involves accessing funds for renovations, remodeling, and expansions of the home. Mortgage shoppers, under this structure, approach lending institutions to acquire funds to work on existing properties. Here also, the amount accessed is spread over a period of time for the borrower to pay.

Vacant Land Financing

Vacant land financing involves a financial package for the acquisition of land. The intent with seeking vacant land financing is to eventually build a house on the block of land one day without it being determined in a specified amount of time. Therefore, unlike most home loans which are used to fund the purchase of a land and property package, a vacant land loan is purely to gain ownership in a block of land.

Public Service Financing

The public service financing for mortgages is reserved for people within Ghana’s public sector who require mortgage financing. This is a special mortgage arrangement that is peculiar to specific banks in the country like Stanbic Bank through the Ghana National Mortgage Scheme.

Although these mortgage structures may not be exhaustive and may not reflect what pertains to other jurisdictions, in Ghana, these are the popular ones, and knowledge of them will help and guide mortgage shoppers in their decision-making process.

 

Source: Ghana Web

Accra, The Government, through the Ministry of Gender, Children and Social Protection, has disbursed GH¢160 million out of GH¢213 million required to pay caterers of the Ghana School Feeding Programme (GSFP) for the first term of the 2021 academic year.

The disbursement of the funds, which commenced on Friday 20th August 2021, covered 62 cooking days of the first term.

A statement signed by Siiba Alfa, Head of Public Relations at the GSFP, said the ongoing payment, however, did not cover the Western and Western North regions due to limited funds.

It said the Ghana School Feeding Programme had received “strong assurance” from the Controller and Accountant General for the release of an additional GH¢53 million to pay remaining regions as quickly as practicable.

The statement said in line with Government’s vision and commitment to sustaining the Programme and improving its quality service to beneficiary pupils, all outstanding arrears would be settled within the framework of the Programme’s contractual obligation with caterers and urged those who had payment related issues to contact Regional Coordinators for speedy resolution.

The statement expressed appreciation to caterers for the services “well rendered” over the period and encouraged them to remain committed to feeding the 3,448,067 beneficiary pupils under the Programme.

 

Source: Ghana News Agency