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Wednesday, April 18, 2012

Making Water and Sanitation a Reality for All Africans

By Jamal Saghir
Dirty water and poor sanitation sicken and kill tens of thousands of people each year in Sub-Saharan Africa, and imposes a heavy economic cost on countries equal to 1.4 percent of GDP in some countries. No one should accept this situation as destiny. We can change it.

Since access to potable water and sanitation was first recognized as a Millennium Development Goal in 2000, budgets for water and sanitation has grown in much of Africa. But bigger budgets and more spending have not appreciably expanded access to services in most countries. This is because the continent's population continues to grow strongly, the extra public financing is not being effectively spent, too little is being done to maintain existing water facilities and infrastructure, and water systems in countries embroiled in conflict have been destroyed or damaged.

Later this week, the World Bank and UNICEF will co-host a high-level Ministerial Dialogue on Sanitation and Water, to take stock of the water and sanitation situation around the world. This will be a vital opportunity for governments, donors, civil society, the private sector, and other key partners to confront the stark truth that safe water and sanitation in Africa remains out of reach of many, especially poor people.

In a recent World Bank study of water and sanitation services in 15 countries of Sub-Saharan Africa, we found that public spending still falls considerably short of government commitments and of international and national policy goals. On average, governments spent $1.71 per person on water supply and sanitation. This corresponds to less than half a percent of gross domestic product (GDP) and is five times lower than what is estimated to be needed each year to meet Sub-Saharan MDG targets.

We also found that actual patterns of spending stand in stark contrast to the economic and social rationales behind such spending. Too small a share of available funds is spent to expand poor peoples access to essential services and to address the health and environmental problems created by unsafe water. Too little is spent on maintaining the water supply infrastructure. Too little is spent on sanitation, which is saves lives, especially those of young children. Too great a share of public funding goes to subsidize water for richer citizens who can afford to pay unsubsidized prices. Too great a share is wasted by inefficient utility practices such as over-staffing and underbilling, just to name several problems.

Targeting public spending to the poor will call for well-off citizens to pay for the water they use. Water and sanitation cannot develop sustainably until the wealthy begin paying for their services so that public financing can be directed to where it is needed most, to improve the lives of poor people.

Low utility tariffs are a major issue. However, before making changes to the tariffs, utilities should improve their efficiency by addressing their low billing and collection ratios. Promoting better maintenance of existing assets can cut spending on costly rehabilitation and thus increase the budget available for expanding access.

While many African governments have updated their water policies, they have been less effective at putting them into practice, with national and local governments unsure about what their respective duties should be. Tanzania, a notable exception, has embraced a decentralized approach to water and sanitation where national government transfers to Tanzanian local governments reached nearly 40 percent of the water budget in 2008, up from zero in 2005.

Only two thirds of water and sanitation budgets are actually spent. To improve budget execution, government capacities in project management, especially at the local level, will need to be strengthened to make well-intentioned plans succeed. More detailed planning and speedier procurement will decrease the number of abandoned works and reduce delays.

Fortunately, we found some positive examples. For example, Benin has combined reforms of public expenditure management, while developing new investment programs. Donors helped the government to improve its management and implementation capacity so that the allocated budget was actually spent within a budget cycle. Between 2001 and 2008, the number of new water points built annually surged more than fourfold. Meanwhile, better budgeting and greater transparency in public financing persuaded several donors to increase their funding to Benin.

Finally, we found that donor funds were often badly targeted and unpredictable, resulting in execution rates that are lower than those of internal resources. Donors need to work together more closely and organize themselves behind a countrys water and development plans. Donor funding is critical, as internal spending is not enough to fund improved water and sanitation. But donor funds are often fragmented.

One water utility in Mozambique, for example, had 19 separate donors in 2008. Donor funding commitments for the coming years are a good start. But greater harmonization and pooling of their aid money are vital to avoid overwhelming a countrys ability to plan, budget, implement, and report back to the donors on how their aid is being used effectively. As a first step, development partners should consider forming a donor group for the sector to jumpstart the necessary pooling, harmonization, and joint evaluation.

Our review revealed a lack of efficient public spending and showed how better-off citizens end up capturing the benefits of public spending on water and sanitation at the expense of poorer people. The emotional argument for more on clean water and better sanitation will be greatly strengthened by improving the targeting and the execution of public spending so that clean drinking water and healthy sanitation services become a reality for all Africans.

The writer, Jamal Saghir, is Director for Sustainable Development in the World Banks Africa Region.

Friday, March 23, 2012

It’s Time to Deliver for Girls and Women

BY EDMUND SMITH-ASANTE
A few weeks ago, on 8 March, the world celebrated International Women’s Day, which serves as a clarion call to honour girls’ and women’s contributions to their families, communities and nations. As our global population swells to over seven (7) billion, we must heed this call by working to ensure that every girl and woman lives a long, healthy and happy life.
Here in Africa, we are doing just that. On 27-28 March, policymakers, researchers and advocates from across the continent – including former Ghanaian Minister of Health (1996 to 1998), Ambassador Dr. Eunice Brookman-Amissah, Ghanaian Member of Parliament, Hon. Dr. Richard W. Anane and international reproductive health adviser Dr. Fred Sai – are gathering in Kampala, Uganda, for a regional consultation on maternal and reproductive health.
At this meeting, convened by Partners in Population and Development and global advocacy organisation Women Deliver, experts will discuss lessons learned, best practices and challenges for improving the health and wellbeing of girls and women.
Across Africa, far too many women die while giving life. Africa has the highest maternal mortality rates in the world, with 48% of all global maternal deaths occurring in this region. A woman in Ghana has a 1 in 66 lifetime risk of dying in pregnancy or childbirth, and this risk is even higher in other African countries. Hundreds of thousands more women are injured while giving birth.
In rural areas, the outlook for women and girls is often even bleaker. Rural girls and women are less likely to receive an education, own property or be financially independent, despite the contributions they make to our societies and economies. They are also less likely to receive the health services they need, such as family planning or skilled care before, during or after birth.
A recent study found that 640 rural women die during pregnancy and childbirth per every 100,000 live births, as compared to 447 urban women. Many women in rural areas do not have the financial resources and transportation needed to travel to far-off health facilities, and if they do make it to a facility, many encounter language barriers, unaffordable fees or shuttered doors.
Many of Africa’s maternal deaths could be prevented with increased access to family planning services. Unfortunately, many women do not have this access. In Ghana, for example, 38% of rural women want, but do not have access to, family planning services and, overall, only 17% of married women report using modern contraceptives regularly.
If we provide girls, women and their partners with family planning information and services we can empower them to decide the number, timing and spacing of their children – and whether they want to become pregnant at all. Intended pregnancies are safer and healthier pregnancies.
Despite the many challenges, there is some good news. According to the World Health Organisation, an estimated one-third fewer women worldwide are dying from complications during pregnancy and childbirth now than in 1990. In sub-Saharan Africa in particular, maternal mortality has declined by 26% over the past two decades.
We have also seen greater political commitment towards reducing maternal deaths. In recent months, both First Lady Mrs. Ernestina Naadu Mills and Health Minister Alban S.K. Bagbin, have stressed the importance of prioritising women’s health.
The Campaign on Accelerated Reduction of Maternal Mortality (CARMMA), launched in 2009 with more than 30 African countries’ support, sets clear pathways to reach measurable goals around maternal health.
The Office of the United Nations Secretary-General’s Every Woman Every Child campaign and the Partnership for Maternal, Newborn and Child Health are two global initiatives that have each convened government, civil society and corporate leaders to improve the lives of women and children.
The recent decline in maternal deaths in Africa and increase in political will are welcome signs that real and lasting progress can – and will – be a reality. The Kampala consultation will provide Africa’s leaders with an unprecedented opportunity to work together to build on past successes and pave a way forward for improving the lives of girls and women in Ghana and worldwide.
The time is now to deliver for girls and women. Let’s join together to celebrate them every day by making their health and wellbeing a top global priority.
By Dr. Jotham Musinguzi
Dr. Jotham Musinguzi is the Regional Director of the Partners in Population and Development Africa Regional Office in Kampala, Uganda
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Sunday, December 18, 2011

Ghana’s Mining Taxes: Are they New and Adequate?

By Alhassan Atta-Quayson, Third World Network Africa


Ghana's 2012 National Budget Statement and Economic Policy proposed, among others, to bring the following changes to mining operations in the country: increase corporate tax rate from 25% to 35%; install a windfall tax of 10%; and implement a uniform regime for capital allowance of 20% for five years.
It also sought to review the principle of ring-fencing to prevent companies undertaking a series of projects from deducting costs from new projects against profitable ventures yielding taxable income. This was commended by the National Coalition on Mining and the Ghana Mineworkers Union as part of steps urgently needed to improve the contribution of the sector to the economy and people of Ghana.
However the Chamber of Mines have gone on the offensive, indicating that the mining sector is already over-taxed and such initiatives are only inimical to their operations. But are these taxes really new as the industry would want Ghanaians to believe and more importantly adequate in ensuring equitable distribution of Ghanas mineral wealth? I offer my opinion
Let me start with whether the taxes are new or not. The mining laws that preceded the current Act 703 clearly reveal that these fiscal measures have always been in the sector and are well-known by the industry players.
Prior to the 2006 review, Ghana had the Additional Profit Tax Law, 1985 (PNDC Law 122) on her statutes, but had apparently never been applied. This law was therefore repealed in the current law that was passed in 2006. Essentially, the country had a 25% windfall tax provision until the 2006 review.
This therefore makes the recent proposal of 10% windfall tax (which might be killed by the mining industry) somewhat of a mockery, given that gold prices increased three-fold (from US$600 to US$1,800) between 2006 and November 2011. This increment in gold price has not been matched with proportionate increases in operational cost, in fact not even halfway.
The massive profits being made by mining companies can therefore not be in question, and the danger in the absence of measures, such as the windfall profit tax to ensure equitable distribution of Ghanas mineral wealth, cannot be clearer. This background therefore makes it economically imprudent and reckless if the government fails to implement the paltry reinstated windfall tax to the latter, given that the rate is 15% less than what it used to be a few years ago and 20% less than what Australia has recently voted for.
The increment in the corporate tax rate from 25% to 35% only takes us back to the level before the 2006 law review. As a matter of fact, the corporate tax rate on mining activities used to be 45% until a downward review to 35% in 1994 by Act 475.
It only came as a shock to many Ghanaians when the 35% corporate tax for mining companies was reduced further to 25% in 2006. For some people, the further reduction in corporate tax rate in 2006 was a demonstration of the high influence of the mining industry, as well as few Ghanaians who benefit substantially from servicing the interest of these mining companies.
This is particularly so because coupled with the reduction of corporate tax rate in 2006 was a reduction, in the upper royalty rate from 12% to six per cent and the abolition of additional profit tax as noted above. The return of the corporate tax rate to the pre-2006 rate of 35% has therefore not been met with considerable appreciation by Ghanaians who are keenly following developments in the mining sector.
According to a report published by the World Bank in July 2011, the 25% rate charged by Ghana over the past five years has been on the lower end of the spectrum of tax rates applied to mining in resource-rich countries around the world. The upward review therefore is a move to right a five-year-old wrong.
Another fiscal initiative proposed by the budget statement was the uniform regime for capital allowance of 20% for five years for mining companies. Until this is approved by parliament, mining companies are allowed to write off 80% of what they consider as prospecting, exploration, and development costs.
In this scenario, companies hardly pay profit tax because these costs, determined by them, must be deducted from their profit before arriving at taxable profit/income. This initiative is an important one, but the extent to which it will benefit Ghanaians will depend on its implementation by the bureaucrats.
Already what constitute capital expenditure and the boundaries of prospecting, exploration, and development costs are unknown, allowing mining companies to use their discretion. A very worrying reality in Ghanas mining sector is that while it is reasonable to give accelerated depreciation on capitalized value of prospecting, exploration, and development costs, the depreciation laws applied in Ghana surprisingly and painfully covers all assets, as defined by mining companies, including machinery, equipment, and buildings. So until these boundaries are drawn or redrawn, opportunities exist for companies to continue evading tax, making mockery of these fiscal initiatives.
The last of the initiatives for this discussion, as identified in the budget, is a review of the principle of ring-fencing. This is aimed at preventing companies undertaking a series of projects from deducting costs from new projects against profitable ventures yielding taxable income.
This is also good because until mining projects are ring-fenced, the companies can continue to evade tax provided they can start new projects whether they are feasible or not. And such reckless investments will be financed by Ghanaians since it is at the expense of taxes payable to the country.
One keeps questioning the wisdom in maintaining these overly-generous incentives used to attract mining companies in early eighties. What will even be more useful in reviewing the principle of ring-fencing is its application to Ghanas stake in mining projects. The law requires that the state must have a 10% stake in all mining projects in the country.
Yet there are several mining projects in the country that the state has zero per cent stake. Besides losing revenue from dividends, it also loses a say in how these companies are operated, especially regarding their relationship with workers and communities affected by their operations. Worse of all, it is illegal.
In summary, while this reintroduction of former fiscal initiatives appears useful they are inadequate to ensure that the mining sector contributes adequately to the economy and people of Ghana.
Already there is little or no information regarding the applicability of these initiatives to mining companies with stability agreements with the government, and sadly dominating the mining sector, such as Newmont Ghana Gold and Anglogold Ashanti.
It is also not clear whether companies with 15-year or more tax holiday will be included. Without their inclusion, these initiatives will be of little use. Further, the bad conduct of mining firms as regards transfer pricing need to be attended to if these initiatives can be positive.
The hint in the budget on addressing the transfer pricing menace must be taken more seriously. Finally, a recent publication by the World Bank entitled Political Economy of the Mining Sector in Ghana published in July 2011' which compliments efforts by civil society organizations such as the Third World Network Africa, must be taken much more seriously to ensure the country transforms her mineral wealth into economic growth and development.

Monday, December 12, 2011

REFLECTING ON CHRISTMAS CELEBRATION

BY DANIEL OWUSU-KORANTENG
I have loved Christmas celebration since my childhood days but must admit that Christmas celebration has changed tremendously over the years. Some years ago, the changes in weather provided the early signs of an approaching Christmas and that reminded parents of their responsibilities to their families especially children.
When we were children, Christmas brought us a lot of joy and we looked forward to the approaching Christmas with great expectations and anxiety, recognising that it was the most important thing that happened to us in the year.
It was common for every child to have a new dress, shoes, Christmas hat and goggles to match. We built Christmas huts with friends and enjoyed some gifts from other relatives who had travelled home from big cities for Christmas celebrations.
There was a lot to eat and drink during Christmas festivities. Neighbours exchanged gifts that were normally delivered early in the morning in the season and the gifts were arranged and covered in special ways to fit the importance of Christmas.
Family members who were expected to spend the Christmas at home were hailed with a big “ Akwaaba” when they arrived, whilst children rushed to collect the luggage of our uncles and aunts from the big cities in the hope that their bags contained some Christmas gifts for us. There was joy in hailing our relatives who had come home to celebrate Christmas and if they came with their children, that added to the joys of children.
It was a common practice for families to breed fowls at home in the year purposely for Christmas and children enjoyed the sport of chasing homebred fowls that attempted to escape being slaughtered for Christmas meals. We knew the importance of these homebred fowls in the Christmas celebration and we hunted for these fugitive fowls with zeal until we caught them.
We engaged in communal eating during the Christmas season and food was shared among families, which helped all of us to enjoy the Christmas meals equally. The celebration of Christmas was joyous, special and beautiful. Christmas was real fun with people, children, relations and the people-to-people contacts helped us to build strong social bonds, peace and harmony which are the very principles underlying the celebration of Christmas.
The Christmas we used to enjoy was people centred. An approaching Christmas can be felt by the cold, dry, foggy weather and most importantly, the Christmas carols that heralded Christmas.
For us children, Christmas was the season for us to enjoy sumptuous meals, especially rice and chicken stew. In those days , rice and chicken was special food ate on special occasions and the fowls used in preparing the food were mainly home bred ones or broilers purposely raised for the Christmas season by local Poultry farmers.
These days of imported Chicken parts, rice and stew is no longer a special meal associated with Christmas. In a country where regulation is weak, consumers of the imported chicken have no idea about how long the imported chicken might have stayed on the shelves in their home countries. Those were the days when the poultry business flourished and poultry farmers were highly respected business people in Ghana. Companies such as Darko Farms were highly respected local businesses that provided Day Old Chicks to feed the poultry industry in Ghana.
Things have changed for the worse and we unashamedly import chicken parts and Day old chicks from other countries. We do not seem to know why we could produce our poultry needs in the past but have supervised the death of the poultry industry even as we boast of technological advancement.
Just check your Christmas meals this season and you would be surprised about the extent of foreign control over your meals. Your Christmas meal may be prepared with imported chicken from Brazil, onions and tomatoes from Burkina Faso, corned beef from Egypt, Rice from Thailand and fruits such as grapes from Europe.
The Christmas celebration would increase the profits of farmers in foreign countries and provide jobs for their people. Christmas celebration has pecuniary consequences. This is an era of foreign control of everything good in Ghana. No wonder the people who feed us want to attach the most bizarre condition to aid even when for each dollar they give us they take away $6.
During the Christmas festivities, we constructed Christmas huts from palm fronds. Children competed among themselves in the construction and decoration of the Christmas huts and sung folk music in the huts accompanied by accoutrements made from bamboos.
The elders in the neighbourhood visited our Christmas huts to encourage us and the most well organised group earned more pesewas than others did. As we played together and performed tasks, we learnt lessons of team building and social networking.
Our childhood friends have been able to sustain a certain support network. The memories of constructing Christmas huts together and the childhood pranks have knit us together as brothers and sisters to date.
Looking back, I could not imagine that Christmas celebration would change so much in our lifetime. Communal and person-to-person celebrations of Christmas have been replaced with technology such as Skype, text messages, telephone calls, Facebook etc.
We no longer deem it necessary to travel home to be in contact with our people during Christmas. Even when we live in the same city with relatives and friends, it is just enough to text a Christmas message to many people or call to wish them Merry Christmas. In most cases, the same Christmas message would be sent to hundreds of people no matter the variations in social relations.
The change in the Christmas is not only about the celebration, but also the foggy, cold dry weather that had long been associated with the Christmas season has changed. Is it a confirmation of the much talked about climate change caused by our poor stewardship of the environment?
How about the Christmas carols that filled the atmosphere with sweet music, which is unique to the Christmas season. In days gone by, Christmas carols filled the atmosphere with a Christmas message of the birth of the Prince of Peace from October and the music was incessant throughout the Christmas season.
Our children no longer have the opportunity to enjoy the communal celebration of Christmas. We cannot blame them much because our society is gradually becoming a hi-tech society and people communicate more through mobile phones, iPad, SKYPE and Facebook than personal contacts.
We are drifting more and more to automation and individualism. The lack of exposure of our children to other dimensions of life makes it difficult for the youth to fit into the real world situation of multidimensional challenges. No wonder that our children lean towards the Western individualistic life, which we ignorantly believe is a more superior way of life.
My late mother did something remarkable that had a lasting influence on my life. When she realised that we were becoming too urbanised, she sent us to our grandfather’s village located in a thick forest to spend long vacations and Christmas holidays.
On the first day of our arrival in the village, we had a horrendous night of screams and hoots of the owl, which made us to shiver throughout the night. The nightmare with the owl nearly sent us packing off to the city the next day.
Christmas affords us the opportunity to think about our folks in the village, the poor, underprivileged, widows, and the aged. We have lost our communal spirit that ensured that both the haves and have-nots had a taste of the joy that Christmas brings. Let us bring back the communal celebration of Christmas by sharing with others. It is only by sharing with others that Christmas becomes meaningful.
As has always been the case, we have had good times and bad times in the year. In good or bad circumstances, the year has gone full circle to meet us and we should be thankful to God. Let us extend the joy of Christmas to other people, especially those who may not be privileged like us. Above all, let us use Christmas to reflect on our actions that have worsened the poverty of the underprivileged in the past year and then resolve to make amends in the coming year.“Afehyiapa”.

Tuesday, September 13, 2011

Smith-Asante presents GJA award to Ghanabusinessnews.com

Ghana Journalists Association (GJA) award winner Mr Edmund Smith-Asante has presented his plague to the management of ghanabusinessnews.com.

Mr Smith-Asante won the Best Environmental Sanitation and Water Reporter award at the just-ended 16th GJA awards night held in Accra September 9, 2011.

He presented the award to Mr. Emmanuel K. Dogbevi, Managing Online Editor of ghanabusinessnews.com at a short ceremony in the website’s office today September 12, 2011.

Mr Smith-Asante, who has won a GJA award previously, reports on health, water, sanitation and other environmental issues.

Receiving the award, Mr Dogbevi congratulated Mr. Smith-Asante for the achievement.

He said the award is a testimony to the good works the website stands for as a leading business, financial, economic and development news portal in Ghana.

“The award confirms the high principles of journalism that we are pursuing here at ghanabusinessnews.com, and we will continue to do good quality writing on the issues that affect people and the country as whole – That is what we stand for,” Mr Dogbevi said .

On his part, Mr Smith-Asante said he is happy to have won the award, but more importantly, he is happy for the fact that his works have been recognised.

“I will continue to do my work in a way that will make some impacts on the society,” he said.

Mr Smith-Asante won the award with his article “Dying of thirst – Challenges of accessing clean water”

By Ekow Quandzie

Monday, September 12, 2011

Ghanabusinessnews.com’s Smith-Asante nominated for GJA Awards

By Ekow Quandzie


Mr. Edmund Smith-Asante of Ghanabusinessnews.com has been nominated for the 16th Ghana Journalist Association (GJA) Awards slated for September 9, 2011.

Mr. Smith Asante, a former GJA award winner, specialises and reports on health, water, sanitation and other environmental issues.

The 11-member Awards Committee for the 16th Ghana Journalists Association (GJA) Awards on Monday proposed 31 nominees for the various categories of awards.

The nominees would be finally approved by the Executive of the Association.

The nominees include Mr Edmund Smith-Asante, Ghana Business News, Ms Hannah Asomaning (Mrs Awadzi) of the Ghana News Agency (GNA), Fati Shaibu Ali, Etv, the Team Graphic, Daily Graphic, Naa Lamiley Bentil, Daily Graphic and Caesar Abagali also of the GNA.

Others include Ms Lucy Adoma Yeboah and Mrs Rebecca Quaicoo-Duho, both of the Daily Graphic, Richard Sky, Citi FM, Odelia Ofori, TV3, Kofi Yeboah, Daily Graphic, Asamoah Tuffuor, Ghanaian Times, Sammy Darko, Joy FM, Manasseh Awuni, GBC/Freelance, Vicky Wereko, Daily Graphic/Freelance, Kwaku Owusu Peprah, Joy FM, Kafui Kanyi, GNA, Samuel Dowuona, Adom FM, Radio Peace and Unique FM.

The rest are Mr Charles Takyi Boadu, Daily Guide, Edward Nyarko, GTV, Bashiru Adam, Public Agenda, Eric Adjei Ansah, Metro TV, Dominic Hlordze, GBC, Sylvanus Kumi, Business Guide, Kofi Enchill, Heritage, Samuel Agyemang, Metro TV, William Asiedu, Mirror, Charles Okine, Daily Graphic, Business and Financial Times.

Mr Edward Ameyibor, Chairman of the Committee explained that a total of 36 categories were selected which was down from 39 for last year. However, the number of entries rose from 271 last year to 302 for this year, according to a Ghana News Agency publication.

Ghanabusinessnews.com’s Smith-Asante picks GJA award as Joy FM’s Owusu-Peprah is adjudged Ghana’s Best Journalist

By Ekow Quandzie


Mr. Edmund Smith-Asante of Ghanabusinessnews.com picked an award at the 16th Ghana Journalists Association (GJA) awards held in Accra Friday September 9, 2011.

His award was for reporting on Environmental Sanitation and Water.

Mr Smith-Asante is a former GJA award winner and specialises in reporting on health, water, sanitation and other environmental issues.

Kweku Owusu-Peprah of Joy FM won the GJA-Professor P.V. Ansah Journalist of the Year 2010 Award – the topmost award.

In all, 34 individuals and media organisations received awards in various categories for contributing to the development and growth of journalism in the country.