SPEECH BY THE HON. MINISTER OF FINANCE AND ECONOMIC PLANNING, MR. KWADWO BAAH-WIREDU, AT THE LAUNCH OF GRAPHIC BUSINESS NEWSPAPER AT ALISA HOTEL, NORTH RIDGE, ACCRA ON AUGUST 26, 2008

MR. CHAIRMAN,
COLLEAGUE MINISTERS
COLLEAGUE MP’s
NII MEI KEI NAA MEI
NANA BOARD CHAIRMAN OF GCGL
BOARD MEMBERS, MANAGEMENT & STAFF OF GRAPHIC COMMUNICATIONS GROUP LTD
FRIENDS OF THE BUSINESS COMMUNITY
INVITED GUEST
DISTINGUISHED LADIES AND GENTLEMEN
MEMBERS OF THE MEDIA

I feel highly privileged to have the opportunity to launch Graphic Business, the newest and eighth newspaper published by Graphic Communications Groups Ltd (GCGL), Ghana’s most celebrated media house.

2. Mr. Chairman, it is important to lay out the economic context within which such a credible business newspaper as Graphic Business comes to the market.

3. We are witnessing severe external shock i.e. Food prices. Crude oil price has shot up from a year-high of US$33 per barrel in September 2000 to a record high of US$148 per barrel in July 2008.

4. Understandably, inflation in almost every country in the world is now at its highest in several years. US, Canada, UK, Euro zone, Sweden, Australia, Mexico, South Korea, Brazil, China, India (to name but a few) have all exceeded their inflation target by various margins. Ghana from 40.5% in December 2000 to 18.31% in July 2008.

5. In percentage terms, Chile has deviated from its inflation target by 216%; Turkey by 175%, South Africa by 171%, the USA by 150%, Sweden by 115%, India by 110%, the Euro zone by 100% and Ghana by 104%.

6. As a result of the oil price shock, we are also seeing exchange rate depreciation against the US dollar in most emerging markets.

7. From the beginning of the year, the Korean won had depreciated by 10.5%, Indian rupee by 8.4%, and the South African rand by 15.7%. The Ghana cedi has depreciated by 6.4% by contrast.

8. The major difference in the Ghana case is that, while economic growth is slowing down in most of these emerging economies, that of Ghana has been increasing; from a growth rate of 3.7% in 2000 to 6.4% in 2007 December.

9. And the evidence is there for all to see:

• The total number of bank branches has increased from under 257 in 2001 to 586 as at May 2008.
• Total deposits in the banking system increased from 20% of GDP in 2001 to 33.7% of GDP by May 2008.
• Total credit to the private sector increased from 12.5% of GDP in 2001 to 28.4% of GDP by May 2008, with a year-on-year growth of over 50% in the last two years.
• Non-performing loans have declined from 22.6% in 2001 to 8% by May 2008

10. Mr. Chairman, these statistics are remarkable. They reflect real developments in the economy. And this is in spite of the severe external pressures.

11. As expected this has engendered confidence in the economy, attracting foreign direct investment (FDI) of GH˘51.97 million as of July this year, with about GH˘5 billion coming in as remittances from Ghanaians abroad.

12. Mr. Chairman, Ladies and Gentlemen, the opening of various banks in the Ghanaian economy can only be an indication of positive growth in the Economy. We have banks from the West African sub-region, Asia and North Africa. There must be something good taking place within the country.

13. Mr. Chairman, Ladies and Gentlemen, from the foregoing, it is clear that the government has put the economy right through macro- economic stability and expects the business community to take advantage of it.

14. Undoubtedly, Graphic Communications Group Ltd has responded appropriately. The time is ripe for a credible business newspaper to come out from an equally credible media house to offer an effective platform to the business community. I am happy to say without fear of contradiction that Graphic Business and its publisher, Graphic Communications Group, fit this bill.

15. Mr. Chairman, Ladies and Gentlemen, at this point, permit me to say a few words about the company whose business has brought all of us here today.

16. I came to be officially associated with the company when I was appointed the Minister of Finance and Economic Planning. Since then, everything that has happened to the Graphic group has only confirmed my view of the company as a consistent good performer.

17. It is on record that the Graphic Communications Group is one of the model state-owned enterprises that have not made excuses but have taken advantage of the autonomy to carve a place for themselves as a profitable company.

18. Mr. Chairman, Ladies and Gentlemen, we all agree that the key measure of the success of a company is its profitability. Graphic has proven that it is a profitable company. It has been improving on its profit year after year and paying handsome dividends to the Government of Ghana, the sole shareholder.

19. I am proud to say, as the Minister Finance and Economic Planning, that from GH˘300,000 in 2004 the company has progressively increased its profitability such that it was able to pay GH˘800,000 as dividend to the state for 2007 financial year.

20. Mr. Chairman, Ladies and Gentlemen, it is also important to note that Graphic has not just been making profit for itself. It is socially responsible as evidenced by its contribution to the needy in society through the Graphic Needy Fund.

21. With fortitude and better conviction, Graphic Corporation has supported human resource development for the nation through its scholarship program for the children of employees and newspaper vendors; its annual Daily Graphic Governance Dialogue is an opening for the good of Ghana.

22. Mr. Chairman, Ladies and Gentlemen, even more praiseworthy is the fact that from 2000 to 2007 Graphic Communications Group developed three successful brands – Junior Graphic, Graphic Advertiser, and Graphic Nsempa – and we are about to launch another product, Graphic Business.

23. Mr. Chairman, Ladies and Gentlemen, Graphic Company Ltd in a period of eight years, has developed four brands for various segments of the market. This is how market-sensitive Graphic is – another mark of a good performing company.

24. Mr. Chairman, ladies and Gentlemen, this keen sense of market-driven approach to management by Graphic Group, is traceable to the company’s beginnings as a private business with profit motive.

25. As a sequel, it is also fair to acknowledge that the stable economic environment the country currently enjoys and the non-interference of the government in the running of the company also account for Graphic’s successful performance over the years.

26. Mr. Chairman, Ladies and Gentlemen, the reason why we are here today is to launch Graphic Business. I have read a copy of the newspaper and my impression is that it bears the credibility hallmark associated with the Graphic Communications Group.

27. This positions the Graphic Business as a MUST-READ financial newspaper for the discerning business executives, policy analysts, economists, business students among other professional groups.

28. Mr. Chairman, Ladies and Gentlemen, I am particularly excited because Graphic Business is coming out at a time when the country is readying itself for an oil industry on commercial basis.

29. With the kind of prudent planning that has preceded the expectation of oil, I am confident that this oil blessing will lead to a expanding economy in which businesses will flourish even the more.

30. In that economic circumstances, the business community will need a business paper that gives accurate business information, facts, figures, unbiased analysis and realistic conclusions to help them predict business trends accurately and strategically plan well for the future. Eg. Market data section of Financial Times is very useful. On 27th September 2007 Ghana secured $750m on the International Capital Market, the interest rate was 8.5%.

The following day 28th September 2007 Financial Times under its bench mark Government Bonds and Emerging Markets Bonds (page 39) provided very useful data.

UK Government Bond at 8.75%

South Africa at 8.5%

Philippines at 9.88%

Columbia at 11.75%

Ecuador at 10%

31. Mr. Chairman, Ladies and Gentlemen, I am therefore convinced that Graphic Business will be able to play its role so well that it will become the reference point for business news and information and not long become the Financial Times of the West African sub region.

32. I recommend Graphic Business for business executives because you will need it for smart business decisions that will impact positively on your profitability and overall image. For those aspiring to become business icons, you need mentors and you will find them in Graphic Business.

33. For economic researchers and business students, you need figures and financial statements that are indisputable; Graphic Business will provide them.

34. Mr. Chairman, Ladies and Gentlemen, to my fellow politicians, Graphic Business makes a good reference material for accurate information for discussing and analyzing not only the national economy but international economic issues and trends.

35. Mr. Chairman, ladies and Gentlemen, I do believe that all of us will subscribe to Graphic Business, let us therefore, combine the power of our minds, the perseverance of our hearts and the skills of our limbs to build a strong corporate business paper called Graphic Business.

36. Mr. Chairman, Nana Board Chairman of Graphic, MD of Honda Place, Managing Director, Management and Staff of Graphic, invited guests, distinguished ladies and gentlemen, I have the singular honour to declaring Graphic Business duly launched today. Ayekoo.

37. Thank you for listening to me.