Skip to main content

Communications sector contributes little to inflation



By Fred Sarpong

Despite its contribution to the Consumer Price Index (CPI) is significantly low, the communications sector is one of the very important sectors to Ghana’s economy.
For some years now the communications sector contribution to Ghana’s inflation has remain the same.
As part of the non-food items in the CPI basket, the communications national weight has consistently be 0.31%, of the total non-food national weight of 55.09%.
In the month January 2013 inflation, the communications sector contributed a year-on-year rate of 0.4% to the non-food sub-sector. But its contribution to January 2013 inflation was 0.0%. This was the same in December, 2012.
According to the Ghana Statistical Service (GSS), the price level of communications services such as telephone charges (with a weight of 90%), EMS charges (5% weight) and standard postage (5% weight) in CPI basket, has remained largely unchanged over some years.
The regional contribution of the communications sector to the national weight is very low. Looking at the December 2012 and January 2013, Western Region contribution has been 0.02%, Central 0.00%, Greater Accra 0.10%, Eastern 0.01%, and Volta 0.03%.
The rest are Ashanti 0.11%, Brong Ahafo 0.02%, Northern Region 0.01% and Upper East and Upper West both had 0.00%.
Magnus Ebo Duncan is the Head of Nation Account at GSS, he told Business Week in Accra last week that communications is one of the special sectors to the contribution of consumer price index. However, call rate especial remains very low and there are stability in some of this communication items such as news papers and stamps the prices have remain stable for a long time.
‘Because of these items have remained stable for a long time that is why we see the low performance of the communications sector contribution to inflation,’ said Duncan.
According to him even though we know call rates are the same throughout, but some use of other communication and services prices differ in some regions of Ghana. ‘Example is space-to-space, which is mainly common in rural areas,’ he added.
He stated that the CPI basket will be review in middle of March this year and communications contribution to the basket may change. ‘This is because it will be using almost the same items, except that the use of internet will be added to the new communications sector,’ Duncan said.
The Ghana’s telecom for some times now has seen competition among the industry players, especially on price level. The operators are MTN, Vodafone, Tigo, Airtel, Glo and Expresso. But their data charges are competitive.
During the 2012 third quarter gross domestic product (GDP) announced by GSS, the main contributors to the services sector were Hotel and Restaurants 31.8%, Financial andInsurance activities 22.6%, and Business, Real Estate and Other business activities 15.3%.  However, Transport and Storage, and, Information and Communication subsectors contributed negatively to the growth of the services sector.

Comments

Popular posts from this blog

Akuapem-Apirede to promote tourism

By: Fred Yaw Sarpong sarpong007@gmaail.com
The Chiefs and people of Akuapem-Apirede in the Okere Constituency of the Akuapem North Municipality have put in place strategic plans to promote tourist sites in the town.
Apiredehene, Nana Saforo Okoampah III told the Daily Express that their vision is to develop Apirede in a modern way.
“We want to have a modern society and environment. We are doing this on the basis of promoting tourism here,” he added.
According to the Apiredehene, it’s their plan to promote the historic sites and the geographical location of the community.
Apirede is one of the 17 towns that forms the Akuapem State and historically, it used to house the armours of the Akuapem State. The community is part of the Nifa division of Akuapem.
He stated that one of those things was called ‘Odosu’ (the war god for Okuapemhene). “The Chief Executioner in those days for Akuapem also came from Apirede and items that he used were also kept here,” he stated.
“These are a lot of things …

Ghana to benefit from oil spill fund

By: Fred Yaw Sarpong

Ghana as crude oil importing country will benefit from the International Oil Pollution Corporation Fund if the country witnesses oil spill at its ocean.

“The fund is a global fund and it’s meant for the countries that import crude oil. The fund is voluntary but Ghana through the Tema Oil Refinery (TOR) contributes annually on behalf of Ghana,” Mr. Kojo Agbenor Efunam, the Deputy Director in charge of oil and gas at the Environmental Protection Agency (EPA) told the Daily Express.

He explained that the fund is mostly for crude oil importing countries but not those into production and exportation.

Mr. Efunam further explained that once Ghana is part of the fund, anytime there is an oil spill involving an oil tanker on the seas of Ghana, the country can apply for the fund to solve any problem resulting from the spillage.

“If the incident does not involve a tanker the country does not benefit. But if the incident involves a tanker the country applies for the fund,” he ment…

PFM Act to guide local government authority borrowing

By: Fred Yaw Sarpong
The bill, Public Financial Management (PFM) Act 921 which has been passed into law by Parliament is to guide public institutions especially the local government authority borrowing. The law was pass on 3rdAugust, 2016
According to the law, local government authority, a public corporation or state-owned enterprise is liable for the debt and other obligations without recourse to Government, unless otherwise explicitly guaranteed by Government in accordance with this Act.
Madam Eva Esselba Mends, the Chief Economic Officer and Group Head of PFM at the Ministry of Finance told the Daily Express that the law involves a lot but it also give instruction to how state institutions can borrow especially with the  local government authority.
She mentioned that there is no specific law in place that gives direction as to what local authority can do when it comes to borrowing by the authority. Other public corporations sometimes borrow with huge amount for their operation but loca…