Ghana: BAT Board Chairman Cautions Gov't

Source from:  04/26/2004 04/26/2004

The chairman of the board of directors of British America Tobacco, Ghana (BAT), Dr. J. Kobina Richardson has observed that the measure of macroeconomic stability achieved so far has set the stage for achieving the desired progress towards alleviating poverty and increasing per capita incomes in the country. He has however cautioned the government not to do anything that would undermine the relative economic stability so far achieved, especially this year, being an election year. Speaking at this year's annual general meeting of the company which was held in Takoradi yesterday, Dr. Richardson noted that the government itself had declared 2004 a business friendly year with the aim of continuing to reduce the cost of doing business in the country in order to make Ghana an attractive destination for investors. Dr. Richardson further noted that last year's fiscal and monetary performance benefited a great deal as export earnings from gold and cocoa increased. The remittances from Ghanaians abroad as well as support from the donor community, including gains from government's HIPC initiative also helped, he added. He said these positive developments in our national economy did augur well for companies such as BAT as they were able to make a profit after tax of ?4.4 billion. This, he continued, meant that shareholders would be paid a dividend of ?4.5 billion or ?54 per share, which represented 9.4% increase over the previous year. The board chairman also noted that since government was a signatory to the World Health Organization (WHO) framework convention on tobacco control, the ministry of health had drawn up a tobacco control bill that was expected to go to parliament during the year. According to him, BAT globally welcomed sensible tobacco legislation since the company knew that the product carried with it serious health risks of which consumers should be informed and that marketing activities should be executed in a responsible manner. "As BAT Ghana is the only registered cigarette manufacturer in Ghana, we will welcome a consultative approach by all stakeholders during discussion of regulation and tax issues," he said. He was hopeful that parliament would pass a bill, which would address both the concerns of the society as well as ensure the company's right to produce and market a legal product to adult consumers. The managing director of the company, Mr. Bernard Mavambu said the company recorded 8.7% sales volume growth over 2002. He attributed this to the creation of new retail outlets, the provision of branded trade furniture and new look pack designs for Rothmans and Diplomat brands, which enhanced the availability of the products by more than30%. On growth prospects, Mr. Mavambu assured shareholders that through a programme of accelerated productivity drive and overhead reduction initiatives currently being pursued, coupled with further investment in talents and engagement in constructive dialogue with shareholders over the issues of sensible regulation and smuggled products, their investment would be safeguarded. Enditem SOURCE FROM: Ghanaian Chronicle (Accra), Apr 24