Mineworkers champion peaceful election 2016

The Ghana Mineworkers Union says businesses and investors in the country will be protected from any threat of electoral violence when decency in upheld in the political discourse.     

In the run up to Ghana’s general elections in December 2016, there have been increasing calls for peace to prevail in the electioneering processes.

General Secretary of the Mineworkers Union, Prince William Ankrah, says such calls should not be taken for granted.

“As Unions, the necessary condition for work is peace. Therefore, there cannot be work without peace. As working people, it is therefore important to call on all political parties and their commentators to approach this year's election with peace at the centre of the discourse,” he said.

Prince Ankrah noted that intemperate language and any action or inaction detrimental to the peace and security of the country must be eschewed at every stage of the elections.

He expects workers to become ambassadors of peace, whiles drawing on lessons from other African countries like Liberia, Guinea and Sierra Leone, who use to run very vibrant mining economies but suffered devastation from war.

“We therefore wish to call on all major actors, including the Electoral Commission, political parties, civil societies and all well meaning Ghanaians to join the crusade in ensuring we deliver on a successful general election,” said Prince Ankrah.

He was addressing the National Executive Council Meeting of the Mineworkers Union in Kumasi.

Industry optimism

Amidst an unprecedented pace of commodity price slump, rising cost of businesses and startling threats of redundancies starring everywhere, Ghana’s mining industry looked gloomy with predictions of a potential crush of the sector by end of 2015. 

But Prince Ankrah points to a positive outlook with the recent jump in the price of gold on the world market. Gold price has recorded a 22.19% increase the beginning of 2016.

“Even more refreshing, is the latest bullish prediction that gold price may likely hit $1500 by the close of this year. This is certainly good news for industry participants,” he said.

He is hopeful “these emerging trends in the commodity price outlook will continue and get even better going forward, so that a lot more jobs can be created for our teeming young men and women, boost the prospects of the Union and also contribute to strengthening the ailing economy”.

By Kofi Adu Domfeh

Bank of Ghana’s policy on fighting inflation crippling businesses – CEBRE

Ghana’s central bank has been asked to reduce its policy rate to alleviate the high cost of borrowing which is crowding out the private sector in the country.

According to the Centre for Economic and Business Research (CEBRE), a Kumasi-based think-tank, the Bank of Ghana would need to change the policy direction of its inflation targeting since it does not support business growth.

“If the interest rates are reduced, producers can borrow more money to produce on large scale to take advantage of economies of scale and hence reduce their prices,” said Gordon Newlove Asamoah, Executive Director of CEBRE.

The monetary policy rate – which measures the rate at which banks lend to the public – is currently pegged at 26%.

In a statement, CEBRE observed that the Bank of Ghana is fighting the inflation from the demand side by restricting money supply into the economy and by keeping the interest rate high to deter borrowing.

But in its analysis, CEBRE believes the approach will only make it more difficult for business to operate and stifle meaningful contribution to the economic development of the country.

“This is because they are borrowing at a high interest rate and so they are not able to borrow enough money to produce more to meet the demand. Furthermore, because the companies are not producing more they will lay off some of the workers and this comes with its own negative effects on the economy. All these problems cripple the businesses, stifle growth and increase unemployment,” it stated.

Mr. Asamoah says the police rate could be reduced to below 20% to ease the cost of borrowing.

CEBRE also proposes that the central bank reduces the Treasury Bill rate and buy back some of government debts “so that more money could be release into the economy”.

By Kofi Adu Domfeh

Ghana ratifies Paris Agreement on Climate Change

Ghana’s Parliament has ratified the Paris Agreement on Climate Change to keep global emissions well below 2degree Celsius to save the planet.

According to Ranking Member, Francis Addai Nimoh, “Climate change does not require a visa from any country to find a destination; either you are in the tropics or you are in the temperate regions or areas, you also have the effects of climate change”.

The Agreement binds countries in the world to keep their promises at the Climate Change talks in Paris, France in December 2015, to cut greenhouse gas emissions.

Ghana’s Minister of Foreign Affairs and Regional Integration, Hanna Tetteh, joined other heads of governments from 170 other countries to sign the agreement at the UN headquarters in New York last June.

Prior to the Paris climate conference, Ghana submitted its Intended nationally Determined Contributions (INDCs) to the UN Framework Convention on Climate Change (UNFCCC), which outlined thematic areas for climate mitigation and adaptation.

The Paris Agreement, together with the Sustainable Development Goals (SDGs), is expected to be mainstreamed into the Ghana Shared Growth and Development Agenda and the 40 year National Development Plan.

“The science of climate change has proved that it is real and not abstract… we are seeing unpredictability in terms of rainfall pattern and intensity and these are matters which affect us directly and indeed global action is required to address it,” said Mr. Addai Nimoh.

He noted that there is the need to take action to protect the planet earth for the present and future generation.

But there are already concerns about Ghana’s commitment to the climate pact.

Dennis Chattaway, a TV and Film Producer, Director and Writer based in Toronto Canada, has quizzed the soundness of Ghana’s quest to keep the planet safe.

In reaction to Parliament’s ratifying the Paris Agreement, he observed that “sounds good until you realize that Ghana is building coal fired plants and more fossil fuel plants to generate electricity. These new plants will increase the pollutants spewed into the area and increase the effects of global warning. Since the Paris Agreement and the new generator plants conflict, how does parliament rationalize them?

Hopefully, such concerns would be seriously factored into Ghana’s implementation of its nationally determined contributions to addressing the climate change menace.

By Kofi Adu Domfeh

Committee constituted to evict illegal miners from Anglogold Obuasi Mine

Ghana's Minerals Commission has identified 70 groups of illegal small-scale miners to be relocated from concessions of Anglogold Ashanti Obuasi Mine.

A District Mining Committee has been inaugurated at Obuasi in the Ashanti region to oversee the peaceful exit of the unlicensed miners from AGA concession to demarcated areas within the lease area surrendered by the company.

Anglogold Ashanti has been battling the illegal miners who have encroached and taken over the company’s mining operations at Obuasi in recent times.

Over the years, there have been a number of casualties and loss of lives arising from conflicts in some areas where unlicensed small-scale mining thrive.

The Minerals Commission describes the problem at the Obuasi Mines as “a crisis or near crisis situation” that calls for immediate attention.

“It is clear that we need to strengthen, broaden and coordinate better our efforts in tackling the challenge of illegal mining in the country and I know measures have been put in place for short, medium to long-term solutions,” said Richard Kofi Afenu, Director of Policy Planning, Monitoring and Evaluation at the Commission.

The Paramount Chief of Adansi Traditional Area, Opagyakotwere Bonsra Afriyie II, says government should be proactive is salvaging the situation where individuals enrich themselves at the expense of the State.

“We as traditional rulers cannot sit down for people to do whatever they like when we have a government that controls the security forces,” he said. “It’s the government’s responsibility to make sure the police controls Obuasi if there is a problem… when there is illegal miming inside a concession and the law does not allow the concession owners to have security with guns; and we call the police and the military and cannot get it, then somebody must accept responsibility”.  

Municipal Chief Executive for Obuasi, Richard Ofori Agyemang Boadi, however says government is committed to providing security protection to investors and investments, including Anglogold Ashanti, to continue to stay in business for the common good.

“As we speak, there a deployment of police and military on the mine,” he said.

Mr. Boadi observed chiefs and traditional authorities must refrain from aiding and facilitating the thriving illegal mining activities which are negatively impacting on farmlands and water bodies.

The AGA in March 2016 surrendered 60percent – 273 square kilometer – of the Obuasi Concession, but retained the Obuasi Mine, where portions have been encroached upon by unlicensed miners.

The Minerals Commission is hopeful the inaugurated committee will assist regulatory agencies to resolve the impasse evicting illegal miners from concessions of Anglogold Ashanti Obuasi mine.

The Committee will also assist in the formation of small scale mining cooperatives to enable them apply for mining concessions in the surrendered area.

The 15-member committee, Chaired by Eng. Kwaku Frimpong Kumah, comprises representatives from the Minerals Commission, Ghana Chamber of Mines, Ghana National Association of Small Scale Miners, the Obuasi Municipal Assembly, Anglogold Ashanti Ghana Limited, Municipal Police Command and the Adansi North Traditional Council.

By Kofi Adu Domfeh

Banks risk increased litigation under new Banking Act 2015

Financial institutions in Ghana face increased class action and mass tort litigation if Clause 143 of the new Banks and Specialized Deposit-Taking Institutions Bill is not managed prudently.

That is the caution of Samuel Addo Otoo, Board Chairman of Yaa Asantewaa Rural Bank and Chief Executive Officer of Easy Investment Cooperative Credit Union.

The Bank of Ghana is expected to implement new policy documents to help regulate and instill discipline in the industry and to boost public confidence.

These include the recently passed Banks and Specialized Deposit-Taking Institutions Bill.

Clause 143 of the Bill “provides for the transfer of a current or savings account which has not been operated for a period of two years to a separate register of dormant accounts”. The dormant funds shall be transferred to a special account at the central bank.

According to Mr. Otoo, the implementation of the Clause could result legal battles if care is not taken.

“The central bank will have to look at it again,” he said. “If for a period of two years you’ve traveled and cannot access your accounts and the fund is transferred to the Central Bank, it will bring a lot of litigation between the banks and their clients and will not deepen the confidence of the people in the banking sector”.

He however believes the use of electronic payment system, where people can remotely access their accounts, is a means to ensure the banking public can make deposits and withdrawals without travelling to keep the accounts active.

“The introduction of E-Banking by the various banks and other deposit would help reduce the cost of banking services, improve customer service and boost e-commerce transactions,” said Mr. Otoo.

The Bank of Ghana, in partnership with the various banks and the telecommunication companies, is rolling out a roadmap to make Ghana a cashless society by 2019 to help reduce the amount of money that the central bank spends to print, manage and decommission cash. 

Mr. Otoo noted that “the promotion of a cashless economy is a collective responsibility of all stakeholders including banks, telecommunications companies, IT companies, subscriber and the general public”. 

Meanwhile, Easy Investment Cooperative Credit Union is introducing the “Easy Smart Save Online-Mobile Banking” platform which offers members greater flexibility, fast and convenient access to their accounts and transactions from anywhere right from their mobile phone or tablet.

By Kofi Adu Domfeh  

Ghana’s development under siege of unbridled land grabbing

It took an industrial action by workers of the Ghana Civil Aviation Authority (GCAA) recently to get their concerns of land sales and encroachment partly addressed by the government.

Domestic flights had to be grounded as part of the agitations before a compromise was reached for the GCAA to have 153 acres of the demanded 640 acres of land released.

The parcels of land reserved for the installation of aviation equipment are being sold to private estate developers.

The civil aviation scenario is a microcosm of the worrying land situation in Ghana.

Unfortunately for institutions that lack the power of impactful industrial strike, lands earmarked for research activities are stealthily encroached, taken over and sold out by traditional authorities and other custodians.

Among State institutions suffering from the land grabbing spree is Council for Scientific and Industrial Research (CSIR), which is mandated to pursue the implementation of government policies on scientific research and development.

The over 15 research institutes under the council are engaged in activities of importance to the development of agriculture, health, environment, technology, industry and other service sectors of the Ghanaian economy.

But the Council is gradually losing its research lands across the country – over 370 acres of land, mostly in the Greater Accra region.

Some individuals with the mandate to guard national asset are rather pursuing their parochial interest by approbating to themselves lands acquired by the State – through Certificate of Allocation – without consulting people entrusted with the management of such lands.

Private individuals with links at the corridors of political power manage to get the Lands Commission to sign off lease agreement for land occupied by the CSIR as demonstration fields and other research purposes.

In some instances, CSIR staff are manhandled and terrorized with impunity by hired land guards whilst court injunctions are gleefully overlooked.

The Research Staff Association of the CSIR has cautioned that the country’s food and water security is threatened by the unbridled grabbing of lands earmarked for agricultural research and development.

The researchers are forced to waste precious time to fight, protect and reclaim the lands, instead of focusing on their mandate to conduct research for national development.

Ironically, the Council seems to be fighting the very State institutions that should help protect the lands as calls for government’s support to protect the lands from encroachment are ignored.

The challenge of land grabbing is indeed alarming in the country.

Ghana’s food and water security is already under threat as arable lands are lost to environmentally-destructive illegal mining activities as well as infrastructural expansion projects.

Water bodies and wetlands are being destroyed for the construction of commercial and residential infrastructure.

Peri-urban agriculture is now a luxurious venture with no land left for such farming activities.

The unbridled acquisition of rural lands by foreign investors, often for biofuel projects, also have negative implications for Ghana’s forest resource management and deprive local people of sustainable livelihoods.

The rush for land threatens to squeeze out poor communities with weak land rights.

There have been demonstrations and agitations in a number of communities against traditional authorities for selling lands illegally to foreigners without compensation.

Forest reserves are also not spared. In the last two decades, mining companies have targeted forest reserves and the number of requests for exploration permits to mine in forest reserves has increased.

Land utilization in line with modern day planning and the complexity of land ownership pose a tough challenge to stimulate the socio-economic development agenda of the country.

The smooth coordination of the country’s land sector has been hindered by lack of modern information management systems – conflict of interest often ensue among government, traditional leaders and private individuals in the acquisition of land for business or community development projects.

For the past decade, Ghana has implemented a Land Administration Project with the objective to promote efficient and transparent land delivery services.

But challenges persist. The siting of markets, recreational, religious and school sites as well as sanitation and vehicular parks has sometimes being a herculean task in communities.

As the global population soars, farmlands and freshwater are increasingly becoming valuable resources.

But as land becomes a scarce resource, should personal parochial interests be allowed to override the national development agenda of reserving lands for research and development?

By Kofi Adu Domfeh