March 5, 1984

People, Places and Events

GHANA

Financial Times on Ghana's turnround

A report in the Financial Times of February 22nd has described Ghana's relationship with the World Bank and the IMF as a considerable turnround because members of Flt-Lt. Rawlings' regime had initially condemned those very institutions as the tools of Western capitalism, and rejected their proposals for a return to economic stability.

Written by the paper's African Editor, Quentin Peel, the report also reflected western observers' surprise at the degree to which the World Bank and IMF had been prepared to back the recovery programme given the political uncertainty and also the Bank's attitude on such matters as presented by one official.

He said: "We don't care a damn what sort of regime they are, provided they use their resources efficiently."

The report catalogued the various measures Ghana has instituted under a classic IMF-World Bank backed austerity programme involving a massive devaluation of the cedi, reduction of the budget deficit, increases in producer prices paid to farmers and re-organisation of the public sector. In return, Ghana would qualify for an IMF standby loan of SDR234.5 million and a compensatory financing facility of SDR120.5 million. The cocoa producer price was raised by 65 per cent from C12,000 to C20,000 a ton, petrol prices were doubled and tariffs raised on a whole range of services.

Since then, the government has further increased petrol prices, cut subsidies and finally, in October, formalised the devaluation with a unified rate of C30 to the dollar, compared with the old rate of just £2.75.

According to the report some early benefits are already becoming apparent. Government finances have improved greatly because of the devaluation, enabling the Cocoa Marketing Board to survive without its traditional massive subsidies, and increasing customs and excise revenues.

In the markets and on the street stalls of Accra, more goods are appearing and prices have begun to drop. But still worrying is the effect of the drought, which is already pushing up the prices of staple foods well before the traditional lean months of the year. The problem is compounded by the continuing lack of transport. Petrol is in desperately short supply, and queues can last for 24 hours or more.

The report finally referred to an investment code which, according to Secretary for Finance, Dr Kwesi Botchway, will set out areas for compulsory state participation, allow for a degree of managerial independence and relaxation of price controls.

Food crisis ahead

The PNDC (Provisional National Defence Council) Coordinating Secretary, Mr P. V. Obeng, has launched a national emergency food programme for 1984. At a meeting with members of the diplomatic corps in Accra, he praised the international community's response to Ghana's appeal in April last year for assistance to overcome the chronic food shortage caused by drought, bushfires and pressure from returnees. Mr Obeng noted that the situation this year is not different from last year's.

The Secretary of Finance and Econ- omic Planning, Dr Kwesi Botchway, disclosed that food production in Ghana in 1983-84 fell below expectation, and the country faces a food crisis during the eight-month period, from February to September.

Dr Botchway said, for bare survival, it is estimated that the country will require at least 620,000 metric tonnes of cereal; this deficit will be partly met by 179,000 metric tonnes from local production, 80,000 metric tonnes of Government commercial imports and pledged aid of 104,000 metric tonnes. This leaves a further 257,000 metric tonnes to be provided for.

Dr Botchway said the aim of the meeting with the diplomats is to formally inform them of the critical food situation during this lean season and to solicit their assistance to meet the shortfall. He believed that the diplomats appreciate the efforts that the PNDC is making to remedy the situation. Inspite of the country's foreign exchange constraints, the Government is planning to import 80,000 metric tonnes of cereal at a cost of some 5,000,000 cedis. Also from the economic recovery programme priority, attention has been given to the production of cereal crops particularly maize and rice. Concrete steps are being taken to provide the necessary inputs to the Ministry of Agriculture and other concerned organizations.

Dr Botchway said the action programme to receive and distribute the expected food aid which was drawn up for the FAO-sponsored food relief exercise has been updated. He gave the assurance that the PNDC has made adequate preparations for storage and distribution.

Government will, however, welcome any contribution, material or otherwise, that will help improve the logistical support for receiving and distributing the expected food aid to needy areas and groups. Dr Botchway announced that a national coordination committee has been established for this exercise and stands ready to work very closely with donor communities.

Ms Aryee calls for change

The Secretary for Information, Miss Joyce Aryee, has called on Ghanaians to change their lifestyles at their various places of work so as to help cut down on the estimated expenditure in the 1984 budget estimates.

According to the Daily Graphic the amount budgeted for this year is C41,425 billion while the expected revenue for the year is C20,042 billion. To cut down on the huge budget deficit, therefore, Miss Aryee stressed the need for every worker to adopt a new attitude towards work in order to increase productivity and avoid waste.

The Information Secretary was speaking at a seminar organised by the Agona Interim District Co-ordinating Committee in Agona Swedru Town Hall on Wednesday to throw more light on the 1984 budget and the population census.

Traders defy warning

Traders continue to bring in more goods in commercial quantities without relevant documents despite warnings of outright confiscation of such goods to the state.

Mr Ato Ahwoi, acting Secretary for Trade, made this observation in Accra when he led the press on an inspection of some of the confiscated goods at the GNTC Warehouse at Adjabeng.

The confiscated goods allegedly described by their owners as personal effects included boxes of drugs, spare parts, door hinges and locks, padlocks, hacksaw blades, keyholders, photo graphic equipment, cosmetics, dry cell batteries, motorcycle batteries, torch lights and hurricane lamps.

Aninakwa identifies problem at GNTC

Mr David Aninakwa, new Executive Chairman of the Ghana National Trading Corporation (GNTC), has attributed the corporation's past problem to over-expansion.

His administration, he said, would therefore cut down on the corporation's numerous outlets as the start of a re-structuring exercise.

He was addressing management staff and workers' and union representatives after his formal introduction in Accra.

Increased aid from Canada

Canada will increase its assistance to Ghana from $11,000,000 last year to $63,000,000 this year. This includes $5,000,000 in emergency food aid.

A hint to this effect was given by the Canadian Minister of State for Exter nal Relations, Jean-Luc Pepin during a visit to Ghana.

According to Accra radio the Canadian visitor toured the Kpong and Akosombo dams to see for himself the effect of the drought that had led to power cuts in Ghana, Togo and Benin. He also visited the Volta River Authority's training school at Akuse where eight Canadian experts are working.

Medium term economic plan

The government is to launch a three year medium-term plan to accelerate the national economic recovery programme. The plan will create conditions for the elimination of foreign and local exploitation of Ghana's material and natural resources. It will promote increased production of selected agricultural items and locally manufactured goods and reduce the rate of inflation while improving the distribution of income, goods and services.

The plan will enable the government to lay the necessary foundation for a sound, reliable economy and will eradicate tax evasion and malpractices involved in the internal and external trade sectors.

Japanese aid

Ghana and Japan have signed a 10,800,000 cedi agreement for the improvement of the electrical transmission system at the Noguchi Memorial Institute in Accra. Yugoslav agricultural aid A 3,000,000 dollar credit for agricul- tural machinery and other inputs for the establishment of a joint agricultural project between the Social Security Bank and the Kumawu Traditional Council have been presented to Ghana by the Yugoslav Government.

The machinery included 19 tractors, a water tanker, two automatic harvesters, four generators, fertilizers, pesticides and a workshop with a complete set of tools and spare parts.

Soviet journalists on tour

A team of Soviet newsmen from 'Pravada' and Tass toured the Western Region to study at first hand economic development activities in the Region. The group visited a number of industries in Sekondi-Takoradi. At the boatyard division of GIHOC (Ghana Industrial Holding Corporation) in Sekondi, the commercial manager of the company, Mr Francis Tandoh, informed the team that the division has skilled manpower to produce fishing boats and trawlers to meet local needs council recessed and for export.

He disclosed that the company has received orders from overseas countries like the United States and Nigeria for the supply of fishing trawlers. The division could not, however, meet these orders because of lack of inputs for the building of the trawlers.

At the Ghana cement works factory in Takoradi, the head of the quality control unit, Mr Yao Sarpong, told the Soviet news team that the production level of cement at the factory is expected to fall as low as 100,000 tons this year as against 200,000 tons last year. This is due to the cuts in electricity supply to the factory and inadequate supply of paper for bagging the cement.

The maximum production capacity of the factory is 500,000 tons a year. Mr Sarpong said that the cement works in installing two new packing machines for the factory. The company had also imported filter bags to be installed at the factory to prevent air pollution. The Soviet news team had earlier paid a courtesy call on the Western Regional Secretary, Dr Don Arthur, in Sekondi.

Cultural agreement with China

Ghana and the People's Republic of China have signed an operational programme on cultural co-operation between them. The Secretary for Culture and Tourism, Mr Asiedu Yirenkyi, signed for Ghana while the Chinese Ambassador in Ghana, Mr Jia Huaiji, signed for his country.

Under the programme China and Ghana are to increase cultural ties within the next two years. Speaking at the ceremony, Mr Asiedu Yirenkyi said the main purpose for signing such an agreement with foreign countries is to foster, strengthen and promote cultural relations. He was grateful to China. for declaring her readiness to offer an amount of 15,000,000 dollars to reactivate some projects in Ghana. He said the signing of the cultural exchange programme therefore seeks to concretize the relationship between the two countries. . . Mr Jia Huaiji said China is prepared to assist Ghana any time there is the need.

LIBERIA

People's redemption

The People's Redemption Council (PRC) has been recessed. An Executive Mansion release however, said that the members of the Executive Committee of the Council are exempted from the recess.

The Executive Committee of the PRC, which is the major decision making body of the Council, comprises the Head of State, Vice-Head of State, Deputy Vice-Head of State, the Speaker and the Secretary General. This is the first time members of the People's Redemption Council have been granted recess since they assumed power on April 12, 1980.

According to the Executive Mansion release, the vacation would also give the Council members time to consider their retirement.

Cabinet reshuffle

Several new appointments have been made in the Liberian Government by the Head of State and Chairman of the People's Redemption Council, Dr Samuel K. Doe.

Those appointed are, National Port Authority (NPA) Managing Director, Dr J. Bernard Blamo as Presidential Affairs Minister, replacing Major John G. Rancy, who now goes to the Ministry of Labour as Minister to replace Major E. Samo Jones. Major Jones will now head NPA as Managing Director, while Captain Ayun Cassell becomes Deputy Minister of Labour replacing Captain Harold G. Tarr who is slated for another post.

The new Deputy Labour Minister, Captain Ayun Cassell has served as Deputy Minister of Commerce, Industry and Transportation from where he was appointed Superintendent of Bong County.

According to an Executive Mansion release the appointments were made after separate meetings the Head of State held with members of the Cabinet and the PRC.

NIGERIA

Over 60 killed in northern Nigeria

The Nigerian agency has reported that over 60 people, including three police- men, had been killed in clashes in the Jimeta area of Yola, north-eastern Nigeria, on February 27th. Mobile police had clashed with people believed to be followers of the late Maitatsine, leader of a Muslim sect.

Police had been called to the area after residents had reported being attacked. About 49 people had been arrested. Meanwhile life was said to be returning to normal in Yola and the Secretary of State Government, Suleiman Abba Jimmeta, had said that civil servants were to report to work "since the enclave of the fanatics" had been cordoned off.

Akinloye's denial

Former chairman of the proscribed NPN, Chief A.M.A. Akinloye, has denied any knowledge about the con- troversial N15.2 million lodgement with the Savannah Bank in Lagos, which the Federal Military government claimed as belonging to him.

In a press statement issued in London, Chief Akinloye also denied knowledge of the company in whose name the money was deposited or the account in which the money was deposited.

He was reacting to a statement recently made by Chief of Staff, Supreme Headquarters, Brigadier Tunde Idiagbon, as regards personal finances of political detainees and fugitives.

Losses through illegal oil sales

The Minister of Petroleum and Energy, Tam David-West, has told journalists in Lagos that Nigeria lost about 1,000,000 dollars a day through illegal sales of oil across the country's borders. Nigerian oil had appeared on the spot market in Rotterdam without the approval of the Federal Government. He had revealed that licences to sell oil had been granted to 72 Nigerians between 1979 and 1983; the licenses had been given out "freely without consideration of their implications to the country's economy".

Cheysson meets Buhari

Head of State General Buhari and the French Foreign Minister, Mr Claude in April. Cheysson have expressed the hope that bilateral relations would be maintained and promoted. At a meeting in Lagos they agreed that the only solution to the Chad situation rested on negotiations among the warring factions under the auspices of the OAU. France Inter reported Cheysson as saying that France was ready to withdraw its forces from Chad if the Libyans also withdrew, in that event France was ready to consider the deployment of an international peace force or the sending of observers.

Africans have responded favourably

The Federal Military Government has received favourable response from all African countries after the change of government in the country, Head of State, Major-General Mohammed Buhari, has said.

He told the Gabonese Vice-Prime Minister, Mr Emile Kassa Mapsi, in Lagos that the response followed special messages sent by the Government to explain the situation in the country.

Major-General Buhari said that the new administration believed that sister African countries should understand the situation before any other country.

Nigeria, he said, was committed to a vigorous African policy, adding that the present administration would strengthen its relationship with other African countries.

The Gabonese Vice-Prime Minister was in Lagos to deliver a special message from President Omar Bongo. In the message, President Bongo assured Major-General Buhari of the support and solidarity of Gabon.

Meanwhile, the Ethiopian Head of State, Colonel Mengistu Haile Mariam, has ended talks with Nigerian leaders in Lagos.

Col. Mengistu made a brief stopover in Lagos on his way home from Moscow where he attended the funeral ceremony of the late Soviet leader, Mr Yuri Andropov.

Joint commission with Libya

A Nigeria-Libya joint commission of Ministers of Foreign Affairs, National Planning and Petroleum has been established. It will hold its first meeting in Tripoli

This is contained in a joint communique signed by the Chief of State, Supreme Headquarters, Brigadier Tunde Idiagbon and the visiting Libyan Prime Minister, Major Abdul salam Jalloud, who has concluded his three-day official visit to Nigeria.

According to the communique, the establishment of a joint Nigeria Libyan Bank and joint holding company was agreed upon. Brigadier Idiagbon and his Libyan guest had earlier reviewed the bilateral economic relations between their countries.

On the gloomy oil market situation, Major Jallud and his Nigerian counterpart pledged their countries' loyalty to OPEC as well as its pricing and production policies.

The two leaders expressed deep concern at the continued impoverishment of the Third World countries in the face of soaring imported inflation and their dwindling volume of trade with the developed countries of the Northern hemisphere.

Revalidation of expired licences

Expired import licences worth over £401 million and earmarked for raw materials, machinery and spare parts are in the process of being revalidated.

The Federal Ministry of Commerce and Industry, which announced this, said that the exercise was biased in favour of manufacturers to enable them to revive local industries and provide employment for jobless people.

Managing Director, while Captain Ayun Cassell becomes Deputy Minister of Labour replacing Captain Harold G. Tarr who is slated for another post.

The new Deputy Labour Minister, Captain Ayun Cassell has served as Deputy Minister of Commerce, Industry and Transportation from where he was appointed Superintendent of Bong County.

According to an Executive Mansion release the appointments were made after separate meetings the Head of State held with members of the Cabinet and the PRC.