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JANUARY - FEBRUARY 2014 ISSUE 033 GH¢10.00
UT CHECK O ST TE THE HOT TO AREAS 014 N2 INVEST I 0) (pg 2
Ghana’s Macroeconomic headaches
- any remedies in sight? (pg 15) USA..................... $7.00 UK....................... £5.00 EUROPE............... €5.00 AUSTRALIA........ AS8.50
CFA ZONE..... CFA 2,500 NIGERIA............. N1000 SOUTH AFRICA....... R45 SOUTHERN AFRICA. R45
THE FIRST BUSINESS READ IN GHANA
OTEMA
YIRENKYI - the lady with the Microsoft touch (pg 12)
Follow us online at www.ghanabizfinance.com
20... Investment
GB&F
Ghana presents one of the most lucrative markets for doing business on the African continent. We present you, here, some viable areas you can invest in, in the Ghanaian economy. A must-read for every prospective investor in the Ghanaian market.
General Manager Josiah Spio-Garbrah kojosegu@yahoo.co.uk Editor Eric Kwame Amesimeku eric_kwame@yahoo.ca Contributors Martin Luther King Oppong Baah Fred Dzakpata Paul Frimpong
23... Banking & Finance
Deputy Manager, Marketing Michel Kouassigan Art-Graphics Manager, Design Benjamin Tetteh Design & Production Daniel Sackey Yobo Circulation & Subscription Bright Yram Yaotse Jeffrey Dapaah Editorial Committee Prof. Paul N. Buatsi Prof. Kwame Addo Ms. Johanna Awotwi Mr. Gaddy Laryea Mr. Ray de Bono Mr. Nana Robert Mensah Mr. Frederick Alipui Ms. Dede-Esi Amanor-Wilks Ms. Nana Spio-Garbrah Office Location Ghana Business & Finance African Business Media House No. 7 Lamb Street (off Farrar Avenue) Adabraka, Accra Ghana Mailing Address P. O. Box O 772, Osu, Accra, Ghana Tel: +233 302 240 786 Fax: +233 302 240 783 ghanabusinessfinance@gmail.com
JAN - FEB 2014 / ISSUE 033 Front Cover: OTEMA YIRENKYI Country Manager, Microsoft Ghana
Contents 5...
Editor’s Suite
6...
News in Brief
The interest rate debate is surely not going to go away anytime soon as long as borrowers continue to sweat under higher rates. Oppong Baah delves into the issue and asks if there could be a change in 2014.
28... Insurance There is no doubt that Ghana’s insurance industry needs recapitalization in order to take on bigger businesses. Fred Dzakpata attempts to find out if players in the industry are gearing towards increasing their financial base.
Read on for the latest news making the headlines in Ghana
12... Cover (Microsoft) Otema Yirenkyi was recently appointed to head Microsoft’s operations in Ghana. Come along as we speak to her on her plans and projections for the software giant in Ghana.
Brand Advisor Dmax Studios in Malta, EU. (www.dmax.tv) Credits
GNA Daily Graphic Forbes ghanabusinessnews.com
myjoyonline Blommberg citifmonline
Ghana Business & Finance magazine is published by
15... Economy Martin Luther-King takes a look at Ghana’s macroeconomic regime and analyses the outlook for 2014.
18... Africa Briefs Get to know the business trends across the African continent as 2014 starts.
Subscribe online at www.ghanabizfinance.com All information contained within this magazine is the property of Ghana Business & Finance and is not to be used without written authorisation from the publishers. Although every effort is made to ensure the correctness of information submitted for publication, the magazine may inadvertently contain technical inaccuracies or typographical errors. Ghana Business & Finance assumes no responsibility for errors or omissions in this publication or other documents that are referenced by or linked to this publication.
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Investment: Page 20 linkedin.com/GhanaBusiness&Finance facebook.com/Ghanabusiness&finance @ghana_business
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Letters to the Editor send your letters to the editor at kwame.eric@gmail.com
43... Conferences Follow upcoming conferences and events around the globe.
46... Commodities The Food and Agriculture Food Price Index makes an interesting revelation about food prices for the year gone by. Read on for more. Management: Page 52
48... World Outlook
Aviation: Page 32
Read on for the experts’ predictions on what 2014 holds for the world economy.
52... Management 32... Aviation The issue of a national carrier for Ghana is back into the news again. Do we as a nation seriously need a national airline? Well, someone thinks so. Find out who that is and the reasons he proffers.
36... ICT Get the latest news from the world of ICT
A particularly interesting management write-up on the Servant Leadership Model of management.
54... Foreign Exchange Rates Latest foreign exchange rates to help you in business.
54... Stats and Indices Ghana’s current economic stats and indices presented as it is.
56... Job Openings Latest executive job openings for those searching for new job opportunities.
57... Book Review Sonia Sotomayor is the first Hispanic to be appointed onto the U.S Supreme Court. Here, we present you with a review of her memoir done by Michiko Kakutani.
58... Auto Review The 2015 Ford F-150 - Find out why it is the bestselling vehicle in the U.S or the past 30 years.
38... Emerging Markets These days, the whole world attention seems to be on the Emerging Markets and the power they hold in bringing back the world economy to growing ways.Read on for news from the new world of opportunities.
40... International Politics Paul Frimpong takes an in-depth look at Africa’s economic boom and the way. Enjoy your read. forward. Enjoy your read.
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Commodities: Page 46
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EDITOR’S SUITE
F.D.Is - could it be the panacea to Ghana’s economic woes? In 2013, Foreign Direct Investment inflows into Ghana dipped by 11 percent to $1.5 billion from $1.6 billion in 2012, according to United Nations Conference on Trade and Industry (UNCTAD). Whereas this might not come as a surprise to most economic watchers due to the challenges the country went through in 2013, both politically and economically, the situation calls for concerted efforts to reverse the trend. This is especially important if Ghana is to enjoy its due share of FDI inflows which is projected to to reach levels of $1.6 trillion in 2014 and $1.8 trillion in 2015. Out of these projections, developing economies are expected to absorb more FDIs than developed countries, as happened in 2012 when developing economies accounted for 52 per cent of global FDI flows.
of the benefits of FDI’s for a developing economy like Ghana could include economic growth - where huge investments into industries could boost the growth of the nation’s economy; trade - FDIs could open a wide spectrum in the trading of goods and services in both the export and import sectors; and employment and skills development - big firms setting up offices in the country and transferring technology could lead to employment creation and the development of the skills of the labour force. Against this backdrop, the choice of the theme for the second edition of the “Ghana Economic Outlook and Business Strategy conference (EOBS 2014)” is apt and relevant as Ghana seeks to look beyond its natural resource-driven economy to find other sources of capital for economic growth. The theme: “Strategies for Attracting Foreign Direct Investments (FDIs) into Ghana” as the focal point of discussions during the conference, has at its core, an aim to generate ideas and workable solutions from personalities across the development spectrum to serve as the manual for attracting FDI for the country in the coming years.
Foreign Direct Investments into Ghana are allowed through some channels such as financial collaborations, technical collaborations, joint ventures, and capital markets via Eurobond issues.Though some opponents of FDI as tool to growing a nation’s economy site huge capital flights as a reason to de-emphasize the importance of FDIs, their argument seems to pale in the face of the numerous benefits that accrue from FDIs for a nation’s economy. Some
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GHANA BUSINESS & FINANCE
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NEWS IN BRIEF
Ghana to issue third seven year bond in May Government through the Bank of Ghana will issue the county's third seven year bond in May this year to raise GHC 300 million. This notice was contained in the Bank of Ghana calendar for the issuance of government securities released earlier in January. The central bank would also sell one five year bond in March and 3 three year bonds in February, April and June this year. In all, the Bank of Ghana is hoping to raise some GHC 12.7 billion from the sale of government securities from January to June. The country last year issued two seven year bonds in August and November to raise GHC 100 million each. Some analysts are hopeful the issuance of these long term bonds would encourage some corporate institutions as well as government agencies like the Volta River Authority (VRA), to issue long term bonds to finance their operations. Information filtering in indicates that the government is using the issuance of these bonds to explore the possibility of selling a 20 year bond soon.
Government invites Italy’s private sector for business
Paa Kwesi Amissah–Arthur Vice President of Ghana
The Government of Ghana has sent out an invitation to the Italian business community to take advantage of new initiatives to invest more in Ghana, and to team up with the Government to finance social projects. Vice President Amissah–Arthur threw the invitation when Madam Emma Bonino, the Italian Foreign Minister who was on a three nation West African tour, paid a courtesy call on him at the Flagstaff House in Accra recently. Vice President Kwesi Bekoe Amissah-Arthur explained that the Government was moving focus from official development support to private sector investment to bridge the financing gaps in the delivery of social projects. He consequently urged Italian investors and the private sector to be guided by the new developments in public sector financing and make good use of the new initiatives to form mutually beneficial businesses in Ghana. The Vice President lauded the development support Ghana had received from Italy over the years, mentioning assistance in the construction of the Akosombo Dam, and the substantial support for capital and equipment, as well as the presence of Italian companies like AGIP in the energy sector. Vice President Amissah-Arthur noted the consolidation of democracy in Ghana, the improvement in the economic indicators, and stressed public private partnership for development projects and job creation for the people. “We want you to assure your counterparts in Italy that we mean business,” the Vice President said. Madam Bonino, for her part also praised the long standing relations between Rome and Accra, noting that there was a need to strengthen that cooperation which dealt with bilateral, economic and political issues. She announced that Italy was developing the ItalyAfrica cooperation under which Italy would seek the specific needs of selected African nations and chart new possibilities towards full fledged cooperation. The Foreign Minister said her country also had new programmes for women in leadership and agribusiness and food exports. She sought the cooperation of Ghana in attempts to push for reform at the United Nations Security Council.
Chinese firm to invest over $2bn in Shama industrial park Chinese firm, Huasheng Jiangquan Group, is indicating it will invest over $2 billion for the construction of an industrial park in Shama in the Western Region. Speaking to an Accra-based radio station, Joy FM from China after a meeting to conclude the agreement, Chairman of the Huasheng Jiangquan Group, Wang Ting Jiang said the firm is doing this because of Ghana's political stability. Mr Jiang commended Ghana for the peaceful business atmosphere which, according to him, allows for investors to recoup their
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investments. Plans to build an industrial park in Western Region are part of efforts to make Takoradi the second hub for industrial activities in Ghana apart from Tema. Construction on the economic industrial park is expected to begin in June this year. About 5,000 direct jobs are expected to be generated from the construction of the park. Trade Minister, Haruna Idrissu, told Joy FM the move would open up the Western Region for more investments especially in the area of infrastructure and port development. The $2 billion investment project according to the Minister will not be a government loan or government guaranteed loan, adding that "they (Chinese investors) are coming in purely as an investor". "What they need from government is assurance of a facilitating role, which we have pledged to do", he added.
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NEWS IN BRIEF
Ghana is sixth best country in Africa for business – Forbes Ghana is 69th in the world according to the latest Best Countries for Business polls by Forbes, making the country sixth in Africa behind Mauritius, South Africa, Rwanda, Botswana and Zambia. The survey based on values calculated till December 2013 were from market performance based on each country’s major stock index returns for 12 months sourced from Heritage Foundation, World Economic Forum, Transparency International, Freedom House among others. Ghana being in the first 100, far ahead of Nigeria which is trailing at 114, gained the position with a GDP growth of 7.0% and GDP per capita at $1,500 against trade balance of 11.7% of GDP. With an estimated population of 25.2 million, the country is ahead of Russia and China who place 91 and 94 respectively in the Forbes list.
GPHA awards $2.5bn expansion project
His Excellency John Dramani Mahama President of Ghana
‘Gov’t cannot continue to give freebies’ – Mahama President John Mahama has said that government cannot “continue to give freebies when you don’t have the income to be able to support it.” According to him, government is struggling with expenditure because it “supersedes our income… therefore, it has become necessary for government to balance out its expenditure and income.”
The Ghana Ports & Harbours Authority (GPHA) is expected to award contracts worth $2.5 billion through 2018 to double capacity, handle larger ships and reduce waiting time for vessels. Government has given 18 companies from around the world a deadline of January 27, 2014 to present technical and financial bids for five stages of expansion at Tema and Takoradi ports, Paul Asare Ansah, Head of Marketing and Public Relations at the GPHA noted in an interview recently, though he declined to name the bidders. Capacity for twenty foot equivalent containers at Tema, which handles about 90 percent of the nation’s traffic, will double to 2 million (twenty foot equivalent units) TEUs a year by 2018, he said. Ghana has already awarded contracts valued at about $470 million for the first stage of expansion at Tema and Takoradi, 218 kilometers west of Accra. About 197 million Euros ($265 million) in financing has come from KBC Groep NV and the agency will seek about $200 million from the $3 billion China Development Bank loan Ghana got in 2011, Ansah said. The agency will determine how it will raise the rest of the funding after it reviews proposals next year, he said. The extra GHC 745 million ($329 million), which the government will raise from increasing the Value Added Tax to 15 percent from 12.5 percent, will be used for an infrastructure fund, Finance Minister Seth Terkper said when he presented the Budget Statement. Traffic at Tema rose fivefold to 822,131 TEUs last year from 2000, according to data on the agency’s website. Allowing deeper vessels to enter the port will boost trade revenue by $490 million, according to an African Center for Economic Transformation report. Takoradi Port handles oil exports from the offshore Jubilee field operated by London-based Tullow Oil Plc. The projects include dredging of channels to allow deeper ships to enter, building a base for oil operations and for the bulk handling of bauxite, manganese and clinker or Portland Cement. Takoradi handled 60,746 TEUs last year, a 48 percent increase from 2003, according to the earliest available data on the authority’s website.
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He was answering a question asked at his first Meet the Press session at the Flagstaff House to mark his one year in office. The questioner asked how government plans to reduce the impact on Ghanaians of the upward adjustment of tariffs and a possible freeze on wages of public sector workers on Ghanaians. In response, the President explained that the decision to increase tariffs and possibly freeze wages was “not easy to take” adding that if he could give out free fuel to the general public and reduce the cost of tariffs, he would do that to lighten their financial burden. But he was quick to add that government has to make some tough decisions because Ghana “has a deficit of energy” and so government has to “put in more energy generation but government does not have the investment to be able to do it and so we have to bring in the private sector to do it” therefore, tariffs have to be adjusted. He pointed out that “governance is a difficult business and the mark of leadership is to take difficult decisions when they need to be taken.”
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The Private Enterprise Federation (PEF) wants government to immediately reverse its directive to all Ministries, Department and Agencies to only insure with insurance companies that are partly or wholly owned by the state. President John Dramani Mahama recently issued a directive which bans MDAs from purchasing insurance from non state owned insurance companies. The directive has raised fury among the insurance fraternity as the MDAs form a major part of their clientele. Nana Osei Bonsu, the Chief Executive Officer of the Private Enterprise Federation (PEF) told an Accra based radio station, Citi FM, that the directive conflicts with government’s policy seeking to create a conducive environment for businesses. “Businesses thrive on competition. To cut off private sector or private insurance companies from competing for government business, we think is an anti-private business policy that should be rescinded in the earliest possible time.” He added that “government has touted private sector as a partner to the development of the nation, and if they go by that policy of government business being assigned to government institutions, then where is the partnership that we are talking about.”
FDI to Ghana declines by 26% Foreign Direct Investments (FDI) legally registered in the country for the first nine months of 2013 have declined in value but increased in numbers. According to figures from Ghana Investment Promotion Center (GIPC), total FDI component recorded US$3,242.72 million, representing a decrease of 25.97% over US$4.38 billion recorded for the same period in 2012. For the first nine months of 2013, 144 projects were recorded by the Center compared with 102 projects recorded in 2012. Of the 144 projects registered as of the third quarter, 108 representing 75%, were wholly-owned foreign enterprises valued at US$1,032.71 million which was 34.74% of the total estimated value of projects registered. The remaining 36 which represents 25% of total project volume were joint ventures between Ghanaians and foreign partners valued at US$1,940,27 million which was 65.26% of the total estimated value of projects registered. For the corresponding quarter of 2012, 56 wholly-owned foreign enterprises and 46 joint ventures were registered and valued at US$1.87 billion and US$42.02 million respectively. For the first nine months of 2013, total initial transfers was US$75.34 million, a decrease of 9.08% over US$82.86 million 2012. Total jobs expected to be created from these projects was 85,195, a significant increase of over 400% compared to the 16,364 expected jobs for the same period in 2012. The FDI component of the estimated value of the projects registered in the corresponding quarter of 2012 was US$1.86 billion and the local currency component was US$55.06 million. For the second quarter of 2013, the FDI component of the estimated value of the projects registered was US$276.86 million and the local currency component was US$7.10 million. The total foreign equity was GHC 1,080.50 million (US$545.70 million) and the initial equity transfers were GHC 459.76 million (US$30.18 million) for this quarter. From the 144 new projects registered as of the third quarter, it is expected that 10,034 jobs will be created. The total number of expected jobs to be created gives an increase of 65.91% over 6,048 expected jobs to be created in the corresponding quarter of 2012. 86.31% (8,660) of the total jobs to be created in the third quarter will be for Ghanaians and the remaining 13.69% (1,374), for expatriates. India, with 23 projects, topped the list of countries with the highest number of registered projects.
Pension funds boost performance of Ghana Stock Exchange Mr Kofi Yamoah, Managing Director of the Ghana Stock Exchange has said the performance of the exchange in 2013 was as a result of the 2nd tier Private Pension Fund Managers participation in the market. He said another factor that accounted for the outstanding performance was the excellent results of listed companies for full year 2012 and first to third quarters of 2013. Mr Yamoah was speaking at a press conference on the GSE market performance for the year ended December 31, 2013 in Accra recently. He said trading was very likely to be active on the back of continued participation in the market by the 2nd tier Private Pension Fund Managers if listed companies continue to
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post extremely good results in 2014. Mr Yamoah said during the year, the new market dedicated for small and medium size companies and start-ups dubbed: “Ghana Alternative Market” took off with two companies accessing the listing support fund. The Managing Director indicated that the exchange has made efforts at integration of West African Capital markets and that enough progress has been made in that direction. He announced that a potential of three companies would be listed on the Ghana Alternative Market and three on the Main Board. He said the Capital requirement of licensed dealing has changed from GH¢100,000 to GH¢1 million in December 2013, meanwhile companies have up to March 2014 to comply. GHANA BUSINESS & FINANCE
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NEWS IN BRIEF
Reverse new MDA’s insurance directive - PEF tells Gov’t
NEWS IN BRIEF
I’m under pressure to fire Finance Minister – Mahama President John Dramani Mahama has revealed that there is pressure to dismiss Finance Minister, Seth Terkpker. The President stated that the calls for the dismissal of the Finance Minister are as a result of the many reforms Mr. Terkper was introducing at the Finance Ministry that are against the traditions that have been in existence at the Ministry over the years. The President made these comments when the new Managing Director of Barclays Bank Ghana, Patience Akyianu called on him at the Flagstaff House recently. Expressing his concern about the challenges of some Ghanaian companies, the President said banks these days feel more comfortable lending to multinational companies rather than indigenous Ghanaian companies because of the inability of the Ghanaian companies to pay back loans on time. This, according to the President could partly be blamed on government’s fiscal indiscipline that creates huge deficits with rising inflation and interest
Vodafone invests GH¢ 55m on network expansion Vodafone Ghana is undertaking massive expansion work, to improve network quality for mobile customers in new and existing sites. The expansion which begun in November 2013 will see the deployment of a total of 403 coverage and capacity sites, and core network expansions using the latest state of the art technologies by the end of March 2014. The decision by Vodafone Ghana to undertake the massive network expansion drive is to give customers value for money and also meet the communication needs of new and existing customers across the country. Patricia Obo-Nai, Chief Technology Officer of Vodafone Ghana, said network quality remains the biggest driving force of Ghana’s highly competitive telecoms sector and it is fundamental to customer satisfaction and loyalty which Vodafone is keenly aware of. She said the telecommunication giant has over the years invested more than US$700 million dollars into expanding sites from an initial 300 in 2009 to about 2000 across the country. “We’ve made a conscious decision to invest not just in our brand and market, but to build a network that is reliable, sound and stable. We are going to make sure that we are consistently reliable, and provide the best service,” she said. She said the expansion would boost business and customer experience and ensure an improved and seamless communication, which would also enable mobile customers to enjoy a faster and better data and voice service.
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rates, thus making it difficult for Ghanaian companies who work for government to survive. The President indicated that government has introduced various reforms to deal with the situation which he described as a “vicious cycle”. “…It’s a vicious cycle we need to break and that is why a lot of the reforms that Seth is carrying out in the Finance Ministry with regards to the GIFMIS (Ghana Integrated Management Information System) and making sure we budget properly and MDAs (Ministries, Departments and Agencies) follow budget discipline. All these are issues we’re trying to introduce”. The reforms however, according to him are not favourable to certain individuals who have therefore called for the head of Mr. Terkper. “I mean several times they’ve interceded with me to sack Seth because he’s hurting the politics. He doesn’t understand the politics,” he added.
SEC initiates moves to compel multinationals to list on GSE The Securities and Exchange Commission (SEC), has presented proposals to government seeking to compel multinationals to list on the Ghana Stock Exchange (GSE) after 5 years of operations in the country. This follows growing criticism of the lack of interest from these companies to list on the bourse despite several tax incentives. Speaking to an Accra-based radio station, Citi FM, the DirectorGeneral of SEC, Adu Anane Antwi said a clause in the licensing requirement of all companies seeking to operate in the country must compel them to list on the bourse. “We should make it part of our licensing requirement. If you are coming to take a license to run a company say in mining, telecom banking or insurance industries, as part of the requirement we give you this license and within five years you put so much of your shares on the stock market.” According to the Director-General of SEC, the companies can start with initial 25 percent shares if new clauses are inserted in the licensing requirements. Meanwhile, a ranking member of the finance committee in parliament Dr. Anthony Akoto Osei says the move is not feasible. He suggested that the Ghana Stock Exchange must adopt world acceptable standards in their operations to attract companies saying, “I personally I’m not in favour of any act to compel anybody to join what is essentially a private matter. Compulsion is not the best in the type of market economy we are operating. An incentive is the way to go.” However, Mr. Adu Anane Antwi says any effort to increase incentives to attract foreign companies and multinationals to list on the bourse will not work.
GHANA BUSINESS & FINANCE
JAN - FEB 2014
COVER STORY
Microsoft reboots its Ghana operations
- with Otema Yirenkyi at the controls 12
GHANA BUSINESS & FINANCE
JAN - FEB 2014
COVER STORY
It is not often that one hears of such progressive and refreshing news - a woman being appointed to head a firm which operates in an area that remains highly male dominated: Information Communication Technology (ICT). Thus when Microsoft, the world’s largest software company, in its bid to expand its operations in Ghana decided on Otema Yirenkyi to spearhead this project, the news was received with commendation from industry watchers and women groups across the globe, but more especially, from the African continent where female appointments to high offices is nothing to write home about. GB&F recently caught up with Otema in Accra, and its Editor Eric Kwame Amesimeku, sat with her to discuss her new appointment and her firm’s renewed interest in Ghana.
Choked economies, fatigued growth and limited opportunities now characterize many developed economies. To grow, most big corporates are now looking beyond developed economies and are turning their attention and interest to the emerging markets. Ghana, along with a few other high-performing African economies, are seen as part of the emerging markets group and now find themselves at the centre of renewed interest from these big corporate firms as they choose to explore the abundance of opportunities in these emerging economies. Microsoft, the world’s leading software company, which has been operating in Ghana for the last 10 years through a partner ecosystem, has decided to scale up its operations in the country by establishing a full subsidiary to drive its growth agenda. To spearhead this growth agenda, Microsoft has appointed Otema Yirenkyi, a native Ghanaian with over 14 years’ experience in the ICT industry. She holds a BSc degree in Industrial and Labour Relations and an MA in Development Studies. Otema incidentally happens to be the first African female country manager for the software giant in Africa. Having worked with other blue chip firms across the globe such as PriceWaterhouseCoopers, and until recently, was one of those leading IBM’s geographical expansion into Africa, Microsoft will leverage Otema’s broadbased expertise and knowledge in the emerging market world to drive its expansion programme.
A road less trodden Traditionally, the world of ICT has been a male dominated industry, with a limited number of women venturing into it. But for Otema, working in the field of ICT was an opportunity to venture into the world of the unknown. Though her job role was not purely focused on ICT, but rather Human Resources
and Labour relations, she has developed a deep knowledge and passion for technology and 14 years down the line she finds herself heading a subsidiary of the world’s leading software company. Asked whether such an appointment thrusts an unwelcome burden on her, she answers in the negative saying, “For me, it is an opportunity to serve and to demonstrate what capabilities I have.” She believes that her appointment is a show of confidence from Microsoft and hopes that this will serve as an inspiration for other African women. And she truly seems to have the support of the firm’s management. “We are delighted to have Otema on board in this critically important role,” said Hennie Loubser, General Manager of West, East, Central Africa and Indian Ocean Islands. “She has the track record and credentials to help grow this dynamic market and she is deeply committed to Africa’s economic development.”
Otema in a chat with Eric Amesimeku, Editor GB&F
The New Focus Current challenges in the ICT market, has led to a realignment of Microsoft’s operations with a view to weathering the storms in competition and responding to the needs of the market. cont’d on page 14
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COVER STORY
In a recent release on the company’s website, the Chief Executive, to Otema, “is to give customers more options around our Steve Ballmer outlined a “far reaching realignment” that he said products.” Again, with the setup of a full operational subsidiary will help the company keep pace with a “fast changing world” in Ghana, Otema believes Microsoft will be in a position to and pull Microsoft from a collection of separate divisions into serve the growing needs of the Ghanaian market and, more a more cohesive company. This would mean reorganizing the importantly, provide a more efficient service to its clients. company to focus on two major areas: devices and services, Otema sums up her new role as “to lead the Microsoft business a strategy aimed at combating the downward trend in PC in Ghana which is focused on government services, our sales which had seen sales slumping 11 per cent in the second corporate business and our consumer business.” quarter of 2013. The company has also been putting more energy into promoting its software — particularly cloud based software Giving meaning to Corporate “Microsoft, has trained — as an ecosystem of products that Social Responsibility 15,000 teachers, impacted also works with other companies’ Over the course of its years of over one million students, operation in Ghana, Microsoft has services, smartphones and tablets. created over 1,800 jobs, and rolled out various programmes and initiatives with an aim to ensuring supported 35 successful Forging the Growth Agenda that “technology plays a key role startups in Ghana.” Until recently, doing business in in developing the economy.” The Ghana, has been challenging. With firm’s vigorous “corporate citizenship limited infrastructural development, a lack of political will to programmes are focused on impacting on the society positively reform and a general lack of skilled human resources, there and this forms part of our vision for the country,” according were several disincentives to doing business in Ghana and most to Otema. As part of these initiatives, Microsoft, has trained foreign companies thus shied away from entering the country. 15,000 teachers, impacted over one million students, created But renewed commitment and a vigorous infrastructure over 1,800 jobs, and supported 35 successful startups in development programme have begun to earn huge dividends Ghana. The company’s flagship African investment and growth for the country. Ghana has also joined the club of progressive initiative, ‘Microsoft 4Afrika’ which was launched last year, countries that have seen the need to mobilize Information is an effort through which the company will actively engage Communication Technology (ICT) for development. The in Africa’s economic development to improve its global country currently tops the African continent on the league competitiveness. “The initiative is focused on innovation, table of mobile penetration with a penetration rate estimated skills and access and we feel these are the three areas that will at 112%. This also places Ghana in the 49th position in the help Africa become more competitive on a global scale,” adds world according to the International Telecommunications Otema. Union (ITU) making the country one of Microsoft’s critical investment markets in Africa. Effectively, Otema intimates that; Microsoft intends to develop ICT skills to drive local innovation and provide beneficiaries “This always on, always connected era fueled by increased with the tools to develop locally relevant content in areas such investments in broadband connectivity seems to serve as a as app development. Having these two in place without access perfect launch pad for Microsoft’s renewed global growth focus would be meaningless and thus the company will also focus which is to drive its devices on creating more broadband access through its ‘Microsoft and service offerings,” says 4Afrika Initiative’. As part of this initiative, Microsoft has Otema. “Services like cloud rolled out internship and scholarship programmes for students services which Microsoft has in the country and it will soon build innovation hubs to always offered, will now be provide mentorship and guidance for developers. Microsoft in expanded to include public partnership with Ghana’s Ministry of Education and the British cloud, which has been Council, has also set up 17 digital hubs, through which 26 local heralded with the launch Master Trainers have been trained who are serving as Digital of Office 365,” she adds. Ambassadors and School Leader Facilitators in the hubs, “The intention,” according helping over 1,700 people in Ghana become trained to date.
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ECONOMY
How not to weaken an economy - get the macroeconomics right!
By Martin-Luther C. King
Rising deficits, a high debt burden, soaring inflation as well as numerous other distortions and disparities threaten to destabilise the dynamics of Ghana’s economy, going into 2014. The trend is also not likely to improve if serious measures are not urgently taken. overnment in the 2014 budget set an inflation target of 9.5 per cent, fiscal deficit of 8.5 per cent and 8 per cent growth in GDP. The inflation target is just 0.5 percentage points above last year’s target of 9 per cent; and, the budget deficit target of 8.5 per cent of GDP, analysts say, is not ambitious enough, is far away from the West African Monetary Zone (WAMZ) convergence target of 3 per cent, and will entail a high level of borrowing and further escalation of the public debt and interest payments. Ghana’s performance for 2013 was characterized by rapid growth with rising deficit and more debts. Inflation at the end of last year stood at a record high of 13.1 per cent, the highest in 3 years. Indeed, West Africa’s second largest economy has constantly breached the WAMZ 5 per cent inflation target in the wake of a fall in inflation globally. Ironically, the 2014 budget did not, however, constructively respond to the existing and emerging issues, experts say. Ghana also faces a number of macro economic challenges in 2014 which might jeopardize its progress towards achieving the Millennium Development Goals (MDGs) and the promotion of human development. Precisely, the fiscal and debt situations have deteriorated as a result of internal budgetary slippages, pressure for large increases in recurrent expenditures, some of which are related to the MDG targets; and, external developments, especially the spill over effects of the international financial collapse. As it is, Ghana is far from achieving the MDG targets on maternal health, infant mortality, and sanitation, but has been close to achieving the other five goals. The principal means for creating additional fiscal space to boost progress towards the MDGs by 2015, just next year, would come from adjustments within the budget, experts warn.
But beyond worries over the MDG targets, it remains to be seen whether in 2014 there would be improvement in how Ghana invests its petro-dollars. Three years into the country’s production of oil in commercial quantities, revenue accrued from the oil sector has so far been spent on non-priority areas including art and culture, rather than road projects and other priority social infrastructure. “Ghana is, not deriving value for money from the infrastructure projects funded with oil revenue as most of the projects had been delayed, operating under costly extensions and leading to cost overruns. The money is supposed to be used for investment to improve living conditions of the people,” lamented Dr. Mohammed Amin Adam, an oil economist. Ironically, this is contrary to the Petroleum Revenue Management Act (PRMA) which named four priority areas where Ghana’s oil money need to be invested in, including oil and gas infrastructure; road and other infrastructure; mechanised agriculture and capacity building especially in oil and gas. Crude oil production from the Jubilee field averaged 102,503 barrels of oil per day (bopd) in the first nine months of 2013, compared with a projected output of 83,341 bopd and 71,997 bopd in 2012. This he said works out to a total of 27,060,737 barrels for January-September 2013, compared with a full year estimate of 30,419,465 barrels and 26,351,278 barrels for the full year of 2012. By the end of September 2013, the stateowned Ghana National Petroleum Corporation (GNPC) had made five liftings on behalf of the country. This comes to an overall total of 4,977,922 barrels for the year, or a total oil revenue of $533.86 million for the country.
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ECONOMY
Ghana declined last year in the World Economic Forum’s mortality, improvement of maternal health and environmental Global Competitiveness Index to 114th in large as a result of sustainability. But the prospects could change. It must be deterioration in its macroeconomic indicators. With regard realised that Ghana’s economic growth in 2014 would largely to strengths, the country seems to be improving its public depend on investments in infrastructure and increased output institutions, which are already somewhat strong by regional from energy and other resource projects coming on stream standards; government efficiency is also relatively high. In in the country. The brilliant policy measures in this year’s addition, some aspects of its infrastructure are good for the region, budget alone cannot yield the expected results in isolation; it particularly the state of its ports, and its financial and goods requires even much more hard work and strict compliance to markets are also relatively well developed. Still, Ghana needs the ethics of the implementation process. Therefore, the key to to do much more to develop and deploy talent in the country. Ghana’s macroeconomic re-engineering in 2014 will be the reEducation levels continue to trail international standards at all allocation of expenditure, more effective revenue generation, levels, labor markets are characterized improvement in efficiency of public by inefficiencies, and the country sector operations, and cuts in some of is not sufficiently harnessing new the least productive activities, experts “ Decisions on how to technologies for productivity say. “It will take a fundamental spend the country’s enhancements. For instance, transformation of the economy increasing oil revenue, ICT adoption rates continue to address supply constraints and to be very low. Also, improved projected at several billion sustained macroeconomic stability to macroeconomic management and tame inflation in the country,’’ says US dollars (USD) over the enduring political stability have Dr J K Kwakye, a senior economist next two decades, will be not significantly transformed the at the Institute of Economic Affairs crucial to future economic in Accra. Also, there is the need to structure of Ghana’s economy over time. Mining and construction have create additional fiscal space through transformation.” sustained the industrial sector, while measures that would improve macromanufacturing has been declining as economic management to raise the a share of GDP over the past 20 years. rate of economic growth. The country also needs to re-balance the economy and stimulate private sector The country needs to develop new, labour intensive economic activity, particularly among small-scale sectors such as manufacturing and agro-processing in order operators, by reducing the deficit, to tackle the employment challenge and provide economic bringing the national debt opportunities to rural areas. This will require coherent public back into conformity with policies to raise agricultural yields, improve the competitiveness long-term sustainability of the economy and overcome land tenure issues. Decisions on criteria, maintaining a how to spend the country’s increasing oil revenue, projected at competitive exchange several billion US dollars (USD) over the next two decades, will rate, and reducing be crucial to future economic transformation. The increased oil the regulatory revenue and foreign direct investment (FDI) inflows may result burden. in strong upward pressure on the exchange rate and threaten prospects for industrialisation. Although Ghana has been classified as a low middle-income country by the World Bank since 2010, its development indicators compare poorly with those of most countries in this category. Ghana has made significant progress towards attaining the Millennium Development Goals (MDGs). It is likely to attain the MDGs on the eradication of extreme poverty, universal primary education, promotion of gender equality, empowerment of women, and combating HIV/ AIDS, malaria and other diseases. Ghana continues to be challenged by slow progress on reduction of under-5
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GHANA BUSINESS & FINANCE
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AFRICA BRIEFS
South Africa rating to be constrained - Moody’s
AfDB approves US$ 25 million Pan-African Infrastructure Development Fund 2 The Board of Directors of the African Development Bank (AfDB) has approved an equity participation of up to USD 25 million in the Pan African Infrastructure Development Fund 2 (PAIDF 2). PAIDF 2 is a private equity fund that will invest in projects across the power, transport, water and sanitation, Information and Communication Technologies (ICT) and healthcare infrastructure sectors throughout the continent. The Fund’s investments will contribute to the development of Africa’s infrastructure backbone, foster economic growth and contribute to the creation of direct and indirect employment. In 2007, the Bank approved an investment of USD 50 million in the Pan-African Development Fund (PAIDF 1), a private equity fund investing in infrastructure projects across the continent. Harith General Partners (Harith) of South Africa was established as the fund manager of PAIDF 1, which is now almost fully committed in nine transactions. To date, investments made by PAIDF 1 have increased access to electricity, upgraded transport infrastructure, improved access to ICT services and supported over 3,000 direct jobs across North, East, West and Southern Africa. Through its participation in PAIDF 2, AfDB will leverage on the quality of the investment platform, the experience of the team and the strength of the project sourcing networks developed by Harith over the past six years. The deficit of adequate infrastructure is a major obstacle to doing business in Africa. The development of new infrastructure projects will support economic growth through enhanced competitiveness, increased foreign direct investments and improved
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trading opportunities. Through these channels, investments in infrastructure projects will contribute to poverty reduction in addition to improving the living conditions of the targeted populations. According to the Africa Infrastructure Country Diagnostic study, USD 93 billion need to be invested annually in order to address the continent’s infrastructure deficit. A key challenge for the development of private infrastructure projects is the limited access to private financing and in particular equity and quasi-equity instruments. With one of the most experienced teams on the continent and a pipeline ready for deployment, Harith is ideally positioned to continue addressing these deficits through PAIDF 2. Moreover, by virtue of its size and geographical reach, PAIDF 2 will be well positioned relative to competition. Tshepo Mahloele, Chief Executive Officer of Harith General Partners, emphasized that “We are of the firm view that our continued partnership with AfDB will unlock even more game changing infrastructure projects as is evident with the likes of the Lake Turkana Wind Power Project in Kenya and the Henri Konan Bédié Toll Bridge in Abidjan.” Samuel Ekue Mivedor, Manager of the Portfolio Division of the Bank’s Private Sector Department underscored that “the Bank is building on the experience gained by Harith as a team over the past six years in order to invest strategically and pragmatically in power, transport, ICT, water and sanitation, as well as health infrastructure projects across the continent.”
GHANA BUSINESS & FINANCE
South Africa’s credit rating is likely to be constrained at current levels for the foreseeable future, due to high levels of poverty and unemployment, Moody’s Investors Service has said. Wide income disparities, poor education standards and high crime levels are also limiting the rating within the Baa range, the New York-based company said in an e-mailed report recently. Moody’s lowered the rating in September 2012 to Baa1, the third-lowest investmentgrade level, with a negative outlook, as economic growth slowed and the government’s budget deficit widened. Standard & Poor’s and Fitch Ratings have a BBB assessment on the nation’s debt, one level below Moody’s. South Africa’s credit strengths included “manageable albeit rising public debt,” complementary monetary, fiscal and exchange rate policies and a strong natural resource base, Moody’s said. Poor labor productivity, a weak national savings rate and substantial infrastructure constraints are credit challenges, the ratings company said. While higher savings and investment rates may help boost the ratings, a downgrade could occur “should the government’s direct debt rise much above 45 percent of gross domestic product,” Moody’s said. The unemployment rate was 24.7 percent in the third quarter, while the government is projecting gross debt will climb to 47.7 percent in the year through March 2017. Moody’s said the central bank is unlikely to raise interest rates until late 2014 and it doesn’t expect the government to post budget surpluses until the fiscal year through March 2016 at the earliest. The Reserve Bank has kept its key rate unchanged at 5 percent since July 2012.
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The head of the International Monetary Fund (IMF) Christine Lagarde, in a recent visit to Kenya has cautioned the country against rushing to implement the East African Community Monetary Union. Speaking to a section of the private sector, the IMF boss said the EAC is not yet ready for the move and needed to address key issues before they unite their currencies. Some of the challenges, she said, include the increasing non-tariff barriers, varying economies and different tax regimes in the respective countries. “As a member of the Monetary Union of Europe, I have to tell you that it is very exciting ambitious project, but one has to, as Aristotle would put it, hasten slowly. Don’t rush,” Lagarde said. She said Kenya, being a strong advocate of the regional
economic integration should guide the other EAC member states in ensuring that common blunders experienced by other unions are not be repeated. “Make sure you learn from our mistakes and that the East African Monetary Union can even teach the Europeans how to do it right,” Lagarde emphasised. The Monetary Union Protocol was signed last month by regional heads of states, kicking off plans to have a common currency for the bloc within 10 years. But the IMF chief says the countries should first come up with proper and clear convergence criteria, drawn from lessons learnt in other unions. “There are multiple experiences, whether it is European Monetary Union, the Caribbean Unions, the West African Unions and all other unions. There are mistakes, gaps, omissions that can be learnt from,” she said. The single currency is aimed at enhancing trade in the East African region and also strengthen the integration. “Regional integration has opened up new markets, supported the emergence of a middle class, and enabled domestic demand to become an engine of growth. The process must now be deepened,” she however acknowledged. Businessman Chris Kirubi later described Lagarde’s position on the Monetary Union as timely advice. “This is very timely advice from the IMF chief. A Monetary Union should be the last thing that Kenya gets into. We should not allow something that could be potentially divisive come in the way of integration,” Kirubi said by phone from Dubai.
Smartphones to shape up trends in 2014 - Ericsson The smartphone will shape up most of the trends in 2014 especially the lifestyle of users of such devices according to consumer research conducted by Ericsson. In a ten point analysis of trends that will shape up the year, head of research at Ericsson consumer lab, Michael Bjorn, says there will be an increased usage of apps in all aspects of life. Secondly he says that the increased dependency of numerous apps will slowly result in the use of single security verification, most certainly the fingerprint, in what he refers to biometric initiatives. Still on apps he says on the third trend that the world will slowly experience the ‘quantified self ’ as a result of overreliance on smartphones as tracking devices in fitness, heart beat tracking, calorie and sleep follow ups. “Studies have shown that over 40 percent of people want to use phones to log all physical activity while over 50 percent want to use rings and wristbands to log and generate personal data,” he says. Bjorn further predicts that regions that are currently not connected to any internet are likely to see connectivity as users demand internet everywhere with the quality of experience when using data likely to improve from the current low quality of signal as compared to voice connectivity.
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In a new trend he says that people are slowly warming up to staying online despite the apparent risks by becoming more cautious. “56% of users are concerned about privacy but only 4% say they will use the internet less. People minimize risks by being more cautious online,” he says. Other predictions include that social media will continue to be a powerful influence to content consumption with a majority of online video views to be references from social media and internet users will push for more visibility on their data consumption as compared to the current overreliance on apps for such statistics.
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AFRICA BRIEFS
Don’t rush into EAC Monetary Union - Lagarde
INVESTMENT
AREAS TO LOOK INTO WHEN READY TO INVEST There are 11 main sectors that have been identified as priority areas for foreign direct investment. Ghana has comparative advantage in these areas and intends to capitalize on this advantage to attract investment into the country. TEXTILE / APPAREL MANUFACTURING
INFORMATION AND COMMUNICATION TECHNOLOGY (ICT)
to local agricultural products e.g. cocoa, cashew, tropical fruits and vegetables. With emphasis shifting from raw exports to processed exports, the investment opportunities are endless.
SEAFOOD PROCESSING
Ghana has benefited from the African Growth and Opportunity Act (AGOA) initiative and still enjoys the extension of this advantage up until September 30th, 2015 when it will expire and until this time the USA market can be accessed easily on a quota/duty free status. The textile and garment industry has therefore become a lucrative investment area with unimpeded quota/duty free access to the US market. Ghana maximizing this advantage by the creation of a 178acre textile and garment village located within Tema Export Processing Zone. This textile and garment village is located close to the port city Tema and Ghana’s international airport thus providing easy access for the import of raw material and export of finished products to the USA and Europe. The textile village also has facilities such as electricity, water and ready factory shells for investors who wish to relocate their industries in Ghana to take advantage of the duty and quota free access that the country enjoys.
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Ghana has the potential for the development of ICT. Currently there are various institutions offering training in different aspects of ICT. Thus Ghana offers a steady stream of young professionals with marketable skills in ICT. ICT enabling infrastructure is being developed which will in turn lead to creation of more Information Technology Enabling Services (ITES) in the country. Ghana is taking advantage of its status as an English speaking country to attract business processing orders outsourcing/back office jobs from the USA and Europe.
AGROFOOD PROCESSING
Ghana has a wide range of agroproducts that are currently exported in their raw state. Opportunities therefore exist in the agrofood processing sector for manufacturing industries to add value
GHANA BUSINESS & FINANCE
The seafood processing subsector is emerging as one of the attractive sectors for investment. Ghana’s free zone enclave can currently boast of one of the major fish processing firms in West Africa, processing about 170 tons of seafood (tuna) a day. There is in fact a large volume of tuna, available all year round, in the coastal seas of Ghana. The processing of tuna and many other marine species therefore presents a great opportunity to any investor interested in seafood processing. JAN - FEB 2014
The jewellery sector is one of the potential areas for investment. Ghana’s position as a major exporter of gold affords investors the opportunity to refine the gold and produce jewellery for export. Ghana currently exports unrefined gold. Investments in this sector, which will lead to value addition to unrefined gold, will yield great returns for business.
METAL / HAND TOOL FABRICATION
FLORICULTURE
CERAMIC TILES MANUFACTURING
INVESTMENT
JEWELLERY / HANDICRAFT PRODUCTION
Opportunities exist in the ceramics sector for the production of building and household ceramic products. There is a ready supply of raw materials for this industry.
Opportunities exist for the exportation of cut tropical flowers. There is also availability of land in the cool mountainous areas of the Eastern and Volta regions where a wider variety of flowers can be cultivated. The country can boast of cool storage at both sea and airports for the provision of a seamless chain of reliable cool storage. There is also reliable cool storage transportation to ensure fresh delivery of the flowers to the export market.
PHARMACEUTICALS
LIGHT INDUSTRY / ASSEMBLING PLANT
Opportunities exist in the metal/hand tool fabrication industry for investment. There is an untapped pool of skilled labour in the tool manufacturing industry. The introduction of new technology will enhance the skills base of Ghanaians and will facilitate production of tools for export.
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The economy of Ghana is developing and the emphasis on smallscale agriculture is shifting to scale farming and manufacturing. There is therefore the opportunity for investment in assembling plants and light industry to assemble semi finished imported goods for the subregional market.
The current trend for low cost and effective drugs poses a great opportunity for pharmaceutical companies to locate in Ghana and take advantage of the competitive cost of labour to produce drugs at a relatively lower cost for the subregion and other developing economies.
Courtesy: Ghana Free Zones Board
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BANKING & FINANCE
The interest rate debate - what lies ahead in 2014? By Oppong Baah
The year 2013 ended with local businesses looking forward to real economic growth in 2014. To the business community, 2013 had been a very difficult one especially, those companies that sell directly to consumers since there was a sharp fall in demand due to the high prices of commodities. The world being a global village, Ghanaian businesses take consolation in a United Nations report released on December 18, 2013, hoping for better things to come in 2014.
ermed UN World Economic Situation and Prospects 2014 report, it intimated that the global economy was expected to grow at a pace of 3% in 2014 and 2015, compared with the estimated growth of 2.1% for 2013. The reason for the optimistic forecast for the global economy is due to improvements in the last quarter of 2013 despite subdued growth experience in the second half of 2013. “Our forecast is made in the context of many uncertainties and risks coming from possible policy missteps as well as non-economic factors that could stymie growth�, it said. Additionally, it
Industry watchers do not doubt the capabilities of local business but their scepticism borders on whether owners of industries could take advantage of the promising and favourable global trend, seek credit and expand their business against the backdrop of the love-hate relationship existing between banks and owners of industries. The sing-song of the Association of Ghana Industries (AGI) has always been the high lending interest rates and the unwillingness of the commercial banks to assist industry with credit facilities to grow their businesses. The AGI contend that where the credit is made available, the accompanying interest alone makes it anti-business.
explained that factors like large emerging economies, China and India included, managing to backstop the deceleration they experienced in the past two years and rearing upwards moderately point to increasing global growth. It cautioned, however, that international capital flows to emerging economies are expected to become more volatile, adding that while growth in international trade flows is expected to pick up moderately at 4.7 % in 2014, prices of most primary commodities are projected to be flat, although any unexpected supply-side shocks, including geo-political tensions, could push some of these prices higher.
The Association is not enthused about the prevailing rigid requirements demanded by commercial banks in the country which has resulted in low access to credit by the private sector. According to the AGI, as a result of the difficulty in accessing credit, most small and medium scale enterprises resort to nonbanking financial institutions whose interest rates are very prohibitive. It is no gain saying that finance is the lubricant of business. The experts say it is the life blood and nerve center of any business entity. Just as circulation of blood is essential in the human body for maintaining life, finance is very essential to the smooth running of any business. cont’d on page 24
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BANKING & FINANCE
But the too-impressive growth. His reason being that the resultant reality of the high business costs constrain their profitability and this in situation is turn makes it hard for them to conveniently pay back the that a bank working capital loans they have taken. The UT Boss noted that is no Father though benchmark interest rates were inching downwards, if Christmas interest rates went too low people would invest more in dollarthat would denominated instruments than in cedis-denominated ones. borrow money Other financial experts also point out that lower interest rates at a high rate would mean those banks that were just attracting deposits and and lend to buying bills would not see the kind of easy profits they saw in the borrowing 2013. public at a lower rate. Banks as business houses are in business to make In this circumstance the BOG must be proactive in coming out profits. The commercial banks counter the accusations of the with a balancing measure to ensure that the banks have cheap AGI, pointing out that the Central Bank (Bank of Ghana) credit for the business community. The Good Book – the Holy should take a portion of the blame since it is part of the Bible, speaks of a man who kept his travelling master’s money “problem.” The Bank of Ghana (BOG) borrows money from in a hole in the ground for a long period of time instead of the public at a high rate and lends to the commercial banks putting it in a bank where it would have attracted an interest at a higher rate. Thus the banks have on his return. Many Ghanaian bank no option than to pass the buck to the customers are the direct opposite of the “ The Bank of Ghana customer - the business community. By said man mentioned in the Bible – they (BOG) borrows money selling bonds to the public the BOG want interests, and fat ones for that effectively competes with the banks from the public at a high matter. Their preferred choice is fixed for the available credit. Such is the deposits but not ordinary deposits and rate and lends to the appetizing and tantalizing nature of current accounts. The cumulative effect commercial banks at a BOG’s bonds that many people with of such practices leaves the banks with no higher rate.” cash now go for the bonds instead choice than to fall on the Central Bank of savings or current accounts at the to borrow at high rates and lend to the banks. The banks also claim that aside from borrowing at public at higher rates. The good news is that all the over 26 higher rates they have to do with the remunerations of staff, or so banks last year experienced meaningful growth in their rent payment, utility payment, risk management and other operations which makes them safe bunkers for depositors and operating costs. strong backers of growth for their customers. In spite of the dilemma inherent in it many bankers hope that the base rate Prince Kofi would fall given the present economic indicators to enable Amoabeng, businesses have more access to credit. “The economics pointers Chief Executive clearly show that interest may come down and there will be Officer of UT cheap money for owners of industries to grow their businesses”, Bank, in a notes Mr. Dan Osei of Unibank. recent media interaction cautioned that should inflation and utility tariffs stay high then the banks were in for another year of a not-
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GHANA BUSINESS & FINANCE
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BANKING & FINANCE
ADB repositions itself for effective growth - with a new image The Agricultural Development Bank (ADB), one of the most profitable state-owned banks in the country has undergone an image change to reposition the bank as a truly modern bank. ADB, which is Ghana’s sole banking institution serving the banking needs of the agricultural sector of the economy, has launched a new logo denoting “simplicity, symmetry and harmony” which in themselves signify the new business focus and approach of ADB “paying more attention to the needs and service of customers whose patronage and support keep the Bank in business.” which has earned the bank “over 30 prestigious international awards conferred across the globe between 2010 and 2013” with some of the most recent ones being “The B.I.D Platinum Award for Quality and Excellence in New York, the OtherWays Management Golden Award for Quality and Business Prestige in Rome and the European Business Assembly Achievements 2013 Award in London.”
Mr Stephen Kpordzih, MD of Agricultural Development Bank
ADB’s new look is reflected in a logo design that is similar to the existing one in terms of colour, that is, pantone dark and light green. However, the new logo looks quite different in format and type face. The brand name on the new logo is written in full under the acronym (initial letters) of the bank, while the slogan (tagline) is set beneath and reads: “…Truly agric and more.” The bank has, for some time now, embarked on a change agenda with an aim to transforming it and repositioning it to compete favourably with other banks in the country. Against this background, ADB has upgraded its facilities, infrastructure, and improved upon its internal processes whilst churning out new products and enhancing the skills-set of its human resources. Speaking at the launch of its new logo, the Managing Director (MD) of the bank, Mr. Stephen Kpordzih, stated that “ADB has evidently outgrown its old identity, hence the need to refresh its identity, improve its look and feel, and present its modern face to the country and the world at large.” Whilst underlining the fact that the “name, values, mission and purpose remain unchanged,” Mr. Kpordzih was quick to add that “what have changed fundamentally are the looks, format and tagline which strongly recognize our root in agricultural financing but also identify ADB as a forward-looking institution.” He revealed the bank’s resolve to remain focused, continue on its growth agenda, and improve on its already sterling performance
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On his part, Nana Soglo Alloh IV, Chairman of the Board of Directors of the bank talked of the strategic plan of the bank which was implemented between the years 2010 and 2012. According to him, the completion of this plan titled “Repositioning ADB – the Future in Focus”, has “gone a long way to align the Bank’s structure to its strategy and improve business processes for efficient operations.” “There has been a massive expansion in the bank’s branch network and the creation of new e-banking channels which have extended the reach of the bank and afforded greater customer convenience”, he added. Nana Soglo Alloh IV further revealed that “the bank is in the initial stage of its follow-up strategic plan for the 2014-2016 period, designed to ensure sustainable growth and profitability and build on the key successes achieved in the previous strategic plan. The bank has set its vision to be among the top tier performing banks.” The next few years of the bank is bound to see a reinvigorated growth in the output of the bank as hinted by the Chairman.bPart of the growth strategy is to infuse more capital into the operations of the bank “A key driver in this plan is the injection of additional capital into the business of the bank through floatation of part of the privately held shares of the bank and the aggressive recovery of debts owed by defaulting customers”, Nana Soglo Alloh IV intimates. Established in 1965, ADB has operated more successfully over the years, offering a comprehensive range of banking products and services for the benefit of customers, particularly farmers and fishermen in the country. Currently, the bank occupies a leading position in the industry, being highly recognized for its remarkable achievements as a development, commercial and investment banking institution. This status implies a new identity and image, hence the new look for the bank.
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INSURANCE
Ghana’s Insurance sector
- TIME TO RECAPITALIZE? by Fred Dzakpata
The insurance sector in Ghana is still grappling with challenges due to the low patronage of their services which calls for pragmatic measures to address the trend. Experts say despite the growth of the sector, only five percent of the country’s population holds any insurance policy which leaves much to be desired in a country with a population of 25 million people. here are currently about twenty insurance companies operating in the country mostly dotted across the big cities such as Accra, Kumasi, Takoradi and Tamale. Prior to the formation of a consortium by the Ghana Insurers Association, insurance companies in the country were not in the position to take on big risks in sectors like the oil sector, but now, that is a thing of the past. Most businesses are not able to take on bigger risk because of the limited finance. Currently, the minimum financial requirement for firms in the sector is US$1 million dollars but that is being revised to US$5 million dollars which is expected to take effect very soon. For
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firms to take on big risks, the big firms would require players to at least have a minimum capital reserve of US$10 million dollars and beyond. This however seems like a mirage since the current minimum capital requirement is one million dollars.
Strategies being adopted to take on big business According to Mr Akwasi Boateng-Sekyerehene, who is an insurance expert, the formation of a consortium by the Ghana Insurers Association to help manage the oil and gas portfolio on
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INSURANCE
behalf of stakeholders for the nation is one of such steps which are still inherent challenges that is making it difficult for is geared towards helping players in the sector to take on such players to get the needed leverage in the oil sector. The law, big risk. The consortium which was formed last year comprises he intimates, is not favorable now because it has to create the of all members of the Ghana Insurers Association underwriting opportunity for easy access in the downstream for firms. “We non-life insurance. Mr Boateng Sekerehene who doubles as are also experiencing a phenomenon where government is the General Manager of Unique Insurance Limited believes the trying through the backdoor to secure contracts for government formation of the consortium which was drawn from the Nigerian insurance businesses which is also affecting the other players in and Angolan experience, the sector” says Mr.Boateng-Sekyere. He is thus calling for fair will greatly enhance the play on the part of government and to reverse that decision. capability of the various members of the consortium in taking advantage of bigger opportunities especially in the oil sector of Ghana’s economy. According to him, it would in addition help eliminate unhealthy competition and avoid the trend where some players think they have leverage over their counterparts due to their connections. He believes the consortium has so far been very effective because every member benefits equally when the opportunity arises. Going further, he is also optimistic players in the insurance sector can take The way forward advantage of listing on the stock exchange. This, he believes, Mr Boateng-Sekyerehene believes it is highly possible can help grow their financial base to help them expand their the insurance sector can take on bigger business with the operations to take on bigger risk in terms of underwriting, mechanism of reinsurance and the capacity building as a result especially in areas that require huge capital of the formation of a consortium to investments. They can also engage in “...they must have enhance the capacity of players in strategic partnership that can help inject taking big risk business especially in the qualities to meet more cash into their businesses to help the oil sector. He told GB&F that his international standards.” outfit, Unique Insurance, is expected to expand their operations. receive about GHC 10 million capital On his part, Mr Kwame Jantuah an oil and gas expert intimates injection from the Ghana Mineworkers Union into its business that, insurance companies must build their capacity, not only with other support from its partners in terms of training of its expand in terms of finance, but human resource and technical staff to enhance its operation. He said this will give his outfit expertise in order to win the confidence of international firms the needed financial muscle in the next three to five years to in the sector to insure with them adding that they must have take up bigger risk especially in the oil sector. the qualities to meet international standards. He says they must be able to compete with any other firm adding that, that The consortium, he said could be dissolved at any time just is why the Local Content Bill allows the local insurance sector as its being done in Nigeria and Unique insurance is taking all to partner with international firms to build their capacity the necessary steps to enhance itself whilst the consortium is in and financial base. “Oil firms across the world spend quite a existence to be able to expand its operation in the near future. lot on safety and imagine there is an explosion and the local He said the desire by firms to take on bigger risks individually insurance firm is unable to take on the task because they lack is not a problem since they can always take on the risk and the capacity” he asked. reinsure with reinsurance companies locally or internationally. He is therefore optimistic most players in the sector will in the next few years venture into areas which were hitherto seen as a Challenges no-go area for insurance firms due to lack of capacity in terms Despite the brouhaha about the recent passage of the Local of skills and finance. Content Bill into law, Mr Boateng-Sekyerehene believes there
PHOTO GALLERY
RE-CONNECT GHANA
STRENGTHENING TIES. CONNECTING POTENTIAL MOVENPICK AMBASSADOR HOTEL, ACCRA 30th DECEMBER, 2013 This event brought together a dynamic group of Ghanaians and friends of Ghana during an engaging evening of networking. It is one of the premier events for professionals in Ghana and the diaspora to network with each other while promoting innovation, business, and investment in Ghana.
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PHOTO GALLERY JAN - FEB 2014
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AVIATION
A strong case for national carrier Captain Paul Forjoe, an aviation expert, says Ghana is missing a national carrier which will enable it to take advantage of the gains in the aviation sector; a potential growth area of the country’s national economy. Captain Forjoe, a former deputy CEO (Technical) of the defunct Ghana Airways and now a businessman and entrepreneur, was sharing his thoughts with the media on Ghana’s economy for 2014.
He stressed the need to develop Ghana’s airports as hubs for the sub-region, and to service international routes as far as the Americas, Africa, the Middle East, Asia and Europe in order to enable the country to benefit fully from the growing opportunities in the sector. Captain Forjoe described the history of Ghanaian aviation as a story of missed opportunities, when the country systematically “gave away” valuable routes such as the Accra – Johannesburg; Accra – New York; Accra – Dubai; Accra – Beirut, and of course, the lucrative Accra – London route, to foreign airlines after spending huge financial and human resources to build demand for them. Ghana, he said, also ceded the national carrier’s dominance in the regional aviation market, as the airline of choice in the West African sub region, to Nigerian private operators.
paid to him. “Already we see renewed signs of life even after we literally threw away our national airline – Ghana Airways. These signs of life can be seen in private sector investments in the domestic aviation market; competition in the ground handling and catering services; increased passenger loads for domestic and international flights (in transit or origination/ destination) and upgrading of ground and flight safety equipment, in conformity with high international standards” he stated.
“Already we see renewed signs of life even after we literally threw away our national airline”
He noted, however, that current trends in the country’s aviation industry pointed to a glimmer of light and hope around the corner, and in this way, the need to learn lessons from past experiences.
Captain Forjoe was cleared by the Serious Fraud Office (SFO) after the completion of investigations into allegations against him while at the defunct Ghana Airways. The clearance letter from the SFO to the liquidator of the former national carrier dated 28th April 2009, which was signed by Mr. A Tetteh Mensah, Assistant Director of Investigations for the Executive Director, stated that “we have found no criminal misconduct on the part of Captain Paul Forjoe of the defunct Ghana Airways” and advised that all entitlements due him which were withheld pending the outcome of SFO investigations be
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Captain Forjoe commended plans to construct a new international airport in Tamale as a really good investment, and proposed the expansion or development of new domestic airports in Kumasi and Takoradi. He said it was about time investments were made in building an international airport to replace the KIA, explaining that a new international airport would create job opportunities during its development and operation and serve as a platform for Ghana’s aviation industry to grow rapidly. He noted that Ghana’s growing economy has made it necessary to begin investing in and creating the necessary future gateways for the anticipated growth; of which a suitable sized international airport was one.“These investments may resolve the challenges the traveling public and the airport authorities face both at the departure and arrival halls” he said.
GHANA BUSINESS & FINANCE
JAN - FEB 2014
AVIATION
Security lapses at Kotoka Airport
FLIGHT SCHEDULES Airline
Service
AC
Origin
GMT
Code No. TYPE
SUNDAY Air Mali
I5
413
CR2
Bamako
16:05
British Airways BA
081
772
Heathrow
20:40
Delta Airlines
DL
026
767
New York
10:55
KLM
KL
589
332/333 Amsterdam 19:55
MONDAY
Airports operators are bound to guarantee the security, safety, comfort and order at the premises of airports where their services are engaged. This is a prerequisite to ensure the safety of travellers and airline operators. These conditions, which made Kotoka International Airport (KIA) one of the most secured and safest airport in West Africa no longer exist. The poor and weak security measures put in place at both domestic and international departures and arrivals as well as the Very Very Important Personalities (VVIP) Lounges are also not helping matters. An unnamed Minister of State and Senior Government officials enroute to Tamale on one of the domestic airlines last weekend, came face to face with the reality of lack of security at KIA, when they started sweating at the VIP Lounge in the afternoon while waiting for their flight. The reason was that the air conditioner serving the facility had been stolen. This simply means that security guards at the airport compromised the safety of travellers as well as employees. The aviation industry in Ghana is booming, which is an indication of the confidence people have in the economy, hence the need for the KIA authorities to streamline the security situation at the country’s only international airport. This will facilitate efforts by President John Dramani Mahama to salvage the image of KIA.
British Airways BA
081/078
KLM
589/590 332/333 Amsterdam 19:55
British Airways BA Delta Airlines
DL
KLM
KL
JAN - FEB 2014
20:40
081/078
772
Heathrow
20:40
26/7
767
New York
10:55
589/590 332/333 Amsterdam 19:55
WEDNESDAY British Airways BA
081/078
KLM
589/590 332/333 Amsterdam 19:55
KL
772
Heathrow
20:40
THURSDAY British Airways BA
081/078
772
Heathrow
20:40
767
New York
10:55
Delta Airlines
DL
26/7
KLM
KL
589
I5
413
CR2
Bamako
09:50
British Airways BA
081
772
Heathrow
20:40
Delta Airlines
DL
26
767
New York
10:55
KLM
KL
589
British Airways BA
081
772
Heathrow
20:40
Delta Airlines
26
767
New York
10:55
332/333 Amsterdam 19:55
FRIDAY Air Mali
332/333 Amsterdam 19:55
SATURDAY
DL
South African Airways (Accra to Johannesburg) DAYS
TIME (departure)
Arrival
22: 30 pm
6:30 am
Tuesday
22: 30 pm
6:30 am
Wednesday
22: 30 pm
6:30 am
Thursday
22: 30 pm
6:30 am
Friday
22: 30 pm
6:30 am
22: 30 pm
6:30 am
22: 30 pm
6:30 am
Saturday
Mrs Dzifa Aku Attivor, Minister of Transport at the swearingin of the Board said: “I entreat the board and management to work as a team to realise the objectives of the agencies.
Heathrow
TUESDAY
Monday
In his zeal to give KIA a new lease of life, President Mahama dissolved and reconstituted the Ghana Civil Aviation Authority’s Board now under the Chairmanship of Mr Tony Lithur, a legal practitioner.
KL
772
Sunday
Source: http://www.ghanaairports.com.gh/FlightSchedules.htm
GHANA BUSINESS & FINANCE
33
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ICT
ICT to drive Ghana’s educational system Prof. Opoku-Agyeman admitted that Ghana needed to brace itself for the reality of changes brought about by the digital age, where knowledge sharing through distance learning has become a motivating factor for enhanced education. She said, over the years, government had implemented various policies and programmes including the improvement of teacher training, infrastructure, review of educational curricula especially for polytechnics to become more relevant, expanding access beyond basic level enrolments by improving infrastructure at both secondary and tertiary levels, yet the returns have not been encouraging. Prof. Opoku-Agyeman, however, indicated that with the present focus on Information and Communication Technology (ICT) to drive education, there was the need to empower institutions of higher learning to come out with sustainable solutions to offset the challenges of ICT usage. These institutions must also be adequately resourced both financially and technically to be able to develop suitable software for usage by both lower and upper levels of education, to ensure that they become practical initiators of their own ICT needs, and not consumers of foreign products alone. Professor Jane Naana Opoku-Agyeman, Minister of Education has lauded Ghana’s Professor Jophus Anamuah-Mensah, a educational system as one of the best in “ Ghana’s statistics Former Vice-Chancellor of the University the world. According to her, the system of only 4.1 per cent of of Education, who delivered the keynote has produced many great scholars over the the population to post address, said Ghana’s statistic of only 4.1 decades who have, and continue to compete per cent of the population to access higher secondary access of favourably with others around the world. education was alarming, and needed She, however, admitted that in spite of higher of education urgent redress. He, however, indicated the successes achieved over the years, there that this huge gap cannot be bridged was alarming...” was the need to reflect on current changes through the usual conventional means to brought about by the digital age, and be abreast with the times improving access, which he said, would delay the entire process for sustainable national economic and human development. of attaining an information society. He urged the participants discussing the benefits of ICT as an enabler for educational This, she said, could be achieved through an Information and advancement, to also recognise that there are huge challenges Communication Technology-driven educational system which to be confronted head-on in the country’s educational must focus on proper development of the required instructors sector. Some of the challenges include issues of poor quality, and infrastructure for successful e-learning education. Prof. geographical inequalities, inadequate infrastructure, lack of Opoku-Agyeman was addressing participants at the 65th qualified teachers and the limited access, for tertiary education Annual New Year School and Conference which opened in particular. Prof. Anamuah-Mensah advocated for massive in Accra recently. The week-long school and conference investment in ICT to improve e-learning education, ensure which is an annual national event held by the Institute of improved management of existing institutions of distance Continuing and Distance Education (ICDE) of the University education, develop policies for the improvement of human of Ghana (UG), was under the theme: “Information and resources, infrastructure and funding for research. Communication Technology-Driven Education for Sustainable Human Development: Challenges and Prospects”.
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GHANA BUSINESS & FINANCE
JAN - FEB 2014
MTN customers are now able to share their views with the world through new mobile technology allowing free SMS surveying, in line with a partnership agreement between MTN and GeoPoll. The launch of GeoPoll in Ghana is an exciting effort on the part of MTN and GeoPoll to bring the latest mobile survey technology to Ghana. The surveys on GeoPoll are always free to reply and many surveys will offer airtime credit. GeoPoll operates by sending short, free-to-respond, easy-toanswer questions directly to subscribers’ phones on various social and developmental issues. Within a few minutes, respondents are able to complete polls helping
ICT
MTN Ghana partners with GeoPoll
organizations around the world better understand their opinions, interest, and ideas. Upon completion of the surveys, mobile subscribers are eligible to receive airtime as compensation. In relation to this MTN and GeoPoll ran preliminary polls in Ghana in August 2013 with tens of thousands of Ghanaians making their voices heard and helping to shape the priorities of the United Nations and international community for the post-2015 millennium development goals. In a statement, the Chief Marketing Officer of MTN, Rahul De, described the GeoPoll service as a unique and innovative service that will further drive the socioeconomic development of Ghana by making the concerns of ordinary citizens known to government as well as to international bodies such as the United Nations and African Development Bank. The polls can also be used to help track the impact of donor funds on communities. James Eberhard, CEO of Mobile Accord, the parent company of GeoPoll, said: “we are very excited to help bring the voice of Ghanaians to the world stage to address important local and global challenges. We have been blown away by the outstanding response GeoPoll has already received in Ghana.”
4G Smartphone users to enjoy superior and stable internet on Vodafone Vodafone Ghana says it has upgraded its network to offer an unmatched internet experience to customers with 4G and Long Term Evolution (LTE) smartphones in Ghana. This means that Vodafone prepaid and post-paid customers with LTE or 4G enabled smartphones such as, Nokia Lumia series,
JAN - FEB 2014
iPhone 5 series, Samsung Active series and Blackberry Q10, can now enjoy continuous and stable internet connectivity on Ghana’s most reliable network. The upgrade by Ghana’s second leading telecom operator provides users with faster speeds and lower latency, which indicates an improved overall internet experience for mobile broadband users. The upgrade will guarantee a faster and more efficient internet experience and is expected to contribute to the development of the country’s Information and Communications Technology (ICT) needs with ultra-fast data services.
GHANA BUSINESS & FINANCE
37
EMERGING MARKETS
China urges IMF to give more power to emerging markets China has called on IMF member nations to stick to a commitment to give emerging markets more power at the global lender after U.S. lawmakers set back historic reforms that would give developing countries a greater say. The remarks by Chinese Foreign Ministry spokesman Hong Lei were an indirect criticism of the United States, the biggest and most powerful IMF member, where lawmakers have failed to agree on funding measures needed for the reforms to move forward, though Hong did not mention the United States by name.
Hong Lei, Chinese Foreign Ministry spokesman
Speaking at the National Press Club in Washington, IMF Managing Director Christine Lagarde said it was "disconcerting" that the IMF funding was not included in a spending bill approved by the U.S. Congress recently. "I very much hope it's a question of timing and not a decision to exclude the IMF," Lagarde said. "I hope that sensible and common sense judgment will prevail," she said, adding that she believed the United States was still committed to supporting the Fund. The reform of the voting shares, known as quotas, cannot proceed without the United States, which holds the only controlling share of IMF votes. After putting off the request in 2012 because of the U.S. presidential election, the U.S. Treasury has sought to tuck the provision into several bills since March. India's Finance Ministry did not immediately respond to requests for comment. But an official at the ministry, who has
38
Christine Lagarde, IMF Managing Director
been dealing with multilateral institutions including the IMF, said India was "disappointed" at Congress' lack of action. A South Korean Finance Ministry official, who declined to be identified, said: "While we appreciate the U.S. government's efforts, we regret the fact that the proposed funding measure fell through in Congress at the last minute." "IMF quota reform is an important matter to address and we hope that the matter will be discussed at the G-20 level with the end-January deadline approaching," the official said. Developing nations have long viewed the IMF with suspicion for promoting disastrous privatizations that complicated the transition from communism for some emerging nations in the early 1990s, and for pushing budget cuts that exacerbated debt crises in Asia and Latin America a few years later. That suspicion has been compounded by a power structure that dates to IMF's founding in 1944. The structure was shaped by the victors of World War Two - the United States and all its allies.
GHANA BUSINESS & FINANCE
JAN - FEB 2014
EMERGING MARKETS
Emerging-market stocks advance amid World Bank forecast Emerging market stocks rose, led by exporters, after the World Bank raised its global growth forecasts. India’s shares climbed to a five-week high as the country’s inflation slowed more than economists estimated. The MSCI Emerging Markets Index rose 0.3 percent to 977.87. India’s S&P BSE Sensex (SENSEX) climbed 1.2 percent, led by banks and automobile companies, while OAO Sberbank (SBER) drove gains in Moscow after posting a profit increase. Brazil’s Ibovespa jumped to a oneweek high as pulp producer Fibria Celulose SA (FIBR3) led gains among exporters. The World Bank sees the world economy expanding 3.2 percent this year, compared with a June projection of 3 percent and up from 2.4 percent in 2013. Part of the increase reflects improvement in the 18-country euro area, and the U.S. remains ahead of developed peers. The Federal Reserve said in its Beige Book business survey that “moderate” growth across most of the country last month was buoyed by gains in holiday spending, an improving labor market and strength in manufacturing. “Global growth rates continue to improve, and that injects renewed optimism,” Chad Morganlander,
JAN - FEB 2014
a Florham Park, New Jersey-based fund manager at Stifel Nicolaus & Co., which oversees about $150 billion of assets, said by phone. “The confirmation by the World Bank bodes well for risk markets.” The iShares MSCI Emerging Markets Index exchange-traded fund was little changed at $40.21. The Chicago Board Options Exchange Emerging Markets ETF Volatility Index, retreated 6.6 percent to 20.79. Brazil’s central bank surprised analysts by maintaining the pace of the world’s biggest interest rate increases after inflation last month surged the most in more than a decade. The announcement came after the close of markets. Russian stocks rallied the most in almost a month as OAO Uralkali, the world’s biggest potash producer, surged on bets. Poland’s shares gained and the zloty fell as data showed inflation undershot the official target for a 13th month, reinforcing the central bank’s vow to keep interest rates at a record low through at least June.
GHANA BUSINESS & FINANCE
39
INTERNATIONAL POLITICS
Boom at home
- AFRICA’S STORY IN 2014 & GOING FORWARD by Paul Frimpong
Africa ended the year 2013 stronger economically, in terms of average GDP growth compared to that of the rest of the world. The story being told about the continent is totally different now, as a once-dubbed ‘dark’ and ‘hopeless’ continent is now described as a ‘rising continent’; ‘hopeful continent’ etc. Today, the continent is a land of opportunity both for Africans and international investors. Many now see the region as “emerging Africa” because of the positive changes that have taken place and continue to take place across the continent.
40
GHANA BUSINESS & FINANCE
JAN - FEB 2014
Africa is now 54 fragmented countries, with a population of over a billion people, 3000 ethnic groups and with over 2000 languages. GDP per capita ranges between $400 to $26,000 as at 2011. Average life expectancy in Africa now is 54 years with an adult literacy rate of 63% as at 2008. Seven (7) out of the 10 fastest growing economies across the world are in Africa. According to the World Bank’s Doing Business Index, 17 African countries are ahead of India. In other reports, 35 African countries are ahead of Russia on Transparency International’s Corruption Perception Index.
to growth, especially as many have identified Africa as the common hub for investments. In 2014 and beyond, across the continent, official budgets would still be buoyed by resource revenue. Commodities are estimated to generate one-third of Africa’s GDP growth, not counting indirect benefits. However, as said earlier, in 2014 and beyond, most countries are going to restructure and still achieve high growth rates without relying significantly on commodity resources. East Africa is an example of such regions.
Africa’s growth story in 2014 would become even more diverse. The past decade or so has seen African countries embrace democracy as the latest wind of change. This phenomenon should tell the world of African government readiness for transparent governance and the rule of the people by the Africa has changed, moving from dire poverty people. Democracy again come hand-inand economic stagnation to a more robust hand with greater accountability and the economic stature. In a world struggling for “ Seven (7) out strengthening of institutions. This means growth, Africa stands out. Africa is growing that improvement in governance across the of the 10 fastest above 5 percent on average, continent is expected to grow especially with the rest of the growing economies as major elections are expected to hit the world, especially continent in 2014. Trade and not aid will still Europe and America across the world be the agenda of most governments in 2014, growing below an average are in Africa.” as the continent continues to sign deals with of 3 percent. This rate of traditional trading partners and in recent growth is significant across times, China, which has increased its share of most countries on the continent. Africa is now trade with the continent. home to some of the fastest growing economies in the world. These growth numbers are crucial for future Again in 2014, most governments would seek to identify economic and investments opportunities. new opportunities to raise long term funds to develop its infrastructure. According to the World Bank, Africa requires This growth has helped build a burgeoning middle class, an estimated amount of US$ 75 billion a year in order to fill which has created new markets for goods and services. Across its infrastructure gap. While there is a tremendous growth the continent a middle class is emerging. Loosely defined by story, a lot of questions continue to be asked of the inclusive the African Development Bank as anyone who spends between nature of such growth. How is the growth tackling income US$2 and US$20 a day in purchasing-power parity terms, inequality, youth unemployment and even more importantly the numbers are increasing. This new emerging middle class is sustainability? young compared to the rest of the world. In 2014, the numbers would continue to grow, especially as African countries have In 2014, strong initiatives would be targeted at resolving such identified infrastructure development as key to expanding insurgencies, whether politically, economically or socially businesses and increasing employment. This means that more motivated combats. The AU, regional blocs i.e. ECOWAS, people will rise into the middle income bracket. EAC, SADC etc, the UN and other international organisations are going to structure a formidable force to stand in on Again, investors centering on tapping into new markets in rebel uprisings across the continent. Indeed, the actions of Africa are likely to find it easier to do business there than civil society organisations (domestic and international), ever before as African governments are working to reduce international organisations, as well as NGO’s could help bring transaction costs. In addition to growing consumer markets, more sanity into Africa’s governance, sustain economic growth African countries have discovered additional natural resources. and put constructive pressure on political leaders to give the If managed properly, these resources could help spur further best to the people. These are all opportunities that corporations, economic growth and development for the region and improve governments and potential and actual investors could utilize in the lives of millions. 2014. Africa's people are its biggest asset. One day, its workforce could be as dynamic and vital as Asia's – especially compared with that of ageing Europe. Such an optimistic outlook for the continent means that African and global policymakers must get ahead of the challenges and opportunities for an important year of decision-making. To date, Africa’s growth story has revolved around commodities. Yet in 2014 and beyond, energy and mining remain crucial
JAN - FEB 2014
Paul Frimpong is a policy analyst at CEPA and a Chartered Economist (ACCE-Global) who writes on the macroeconomy and global affairs. He is also an African Affairs Analyst and Emerging Markets Strategist. Tel: +233 241 229 548 Email: py.frimpong@yahoo.com py.frimpong90@gmail.com
GHANA BUSINESS & FINANCE
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INTERNATIONAL POLITICS
Although the full story is yet to be told, recent research has shown that the economic potential of the continent is enormous and beyond the numbers that we are currently seeing.
CONFERENCES & EVENTS
2nd Ghana Economic Outlook and Business Strategy Conference (EOBS) With the blessings of the Government of Ghana and the full participation of the President of the Republic, this conference creates a single one-of-a-kind platform for decision makers from both the public and private sectors of Ghana’s economy to meet and deliberate on the challenges facing the country’s economy and strategize on the way forward. This year’s event focuses on creating the right atmosphere to drive Foreign Direct Investments (FDIs) into Ghana. Venue: Best Western Hotel, Accra Date: November 28th, 2013 Contact: Gloria (+233 302-240786)
2014 International Business Research, Economics, Finance and MIS Conference (BREFM)
The International Business Research, Economics, Finance and MIS Conference (BREFM) offers a great opportunity to bring together professors, researchers and scholars around the globe a great platform to deliver the latest innovative research result and the most recent development and trends in business field. Date: February 14-16, 2014 Venue: Ala Moana Hotel - Honolulu, Hawaii,USA Contact: brefm@brefm.org
International Workshop on Information Engineering and Management
This workshop aims to grasp innovative ideas from researchers who focus mainly on using IT as a tool for adding value to organisations. The workshop welcomes papers in the fields of information systems and more precisely in the areas of business processes modelling / engineering, information management, project management and enterprise computing. Date: May 24 2014 Venue: Shangai China Contact: Mohammad Yamin: myamin@kau.edu.sa
The Lisbon Summit
The Lisbon Summit will bring policymakers together with business leaders and investors for a day of debate and dialogue around the tough choices facing the country, addressing the questions at the heart of Portugal’s dilemma. Date: February 18th 2014 Venue: Hotel Cascais Miragem, Cascais, Portugal Contact: emeaevents@economist.com or call +44 (0)207 576 8118
Global AgInvesting 2014
Now in its sixth year, Global AgInvesting 2014 offers a comprehensive overview of agriculture investment opportunities, risks and return profiles across all major global production regions, as well as strategies for diversified ag portfolios including regional variation, private equity, and liquid investments. Concurrent track sessions will highlight the surrounding themes of ag venture capital and agricultural technology, water opportunities, and protein plays in livestock and dairy, global fisheries and aquaculture Date: 28th April - 01st May, 2014 Venue: 301 Park Avenue New York 10022, USA Contact: Kate Westfall on 001.212.920.0738, or email: kwestfall@globalaginvesting.com
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The International Traders Expo
The largest and only Expo exclusively for active traders provides optimal exposure to everything needed for consistent and profitable trading in the markets. Produced by MoneyShow, the Expo is a dynamic gathering of expert speakers, world-class sponsors, media partners, and top trading product or services companies that features more than 200 hours of in-depth education per event and attracts a highly qualified active trader audience of more than 15,000 annually. Eager-to-learn traders discover the latest tools, technologies, and cutting-edge investment opportunities as well as experience hands-on training and invaluable interaction with successful industry veterans. Date: February 16-18, 2014 Venue: Marriott Marquis Hotel, Contact: Call 00 800 9221 1344 ext. 2263.
GHANA BUSINESS & FINANCE
JAN - FEB 2014
MERGERS & ACQUISITIONS
Central Securities Depository and GSE Securities Depository merge The Central Securities Depository Ghana (CSD) and the GSE Securities Depository Company Limited (GSD) have merged into a single entity. An agreement to that effect was signed between officials of the Bank of Ghana and the Ghana Stock Exchange. Dr Kofi Wampah, Governor of the Bank of Ghana, signed on behalf of CSD while Mr Franklin Asafo-Adei, Chairman of the GSD board signed on behalf of the entity. The CSD is wholly owned by the Bank of Ghana to manage the issue, redemption and maintenance of the records of ownership of securities issued by Government of Ghana, Bank of Ghana and the Ghana COCOBOD. In 2008, the Ghana Stock Exchange (GSE) also established the GSE Securities Depository Company Limited (GSD) as a subsidiary to provide custody for securities listed on the Ghana Stock Exchange and also to provide for the dematerialisation of share certificates. Under the terms of the agreement the Central Securities Depository (GH) Ltd shall be the surviving entity with effect from January 1, 2014. The Bank of Ghana will own 82% of the new company and transfer 18% to the Ghana Stock Exchange. The Ghana Stock Exchange will be allowed to increase its shareholding up to 30% within one year at a price existing at the time of the merger. Mr. Stephen Tetteh, Head of the CSD, will maintain his position as Chief Executive Officer while Mrs. Melvina Amoafo, the Executive Director of the GSE Securities Depository Company, assumes the position of Deputy Chief Executive. All staff of the GSE Securities Depository Company will be
absorbed into the new company. The merged entity will handle securities listed and unlisted on the Ghana Stock Exchange as well as Government of Ghana and Bank of Ghana instruments, corporate bonds and money market instruments. It will also operate the registrar services under the licence granted by the Securities and Exchange Commission. Dr Wampah said the merger was necessary because the two depositories were a duplication of cost and efforts and pledged Bank of Ghana’s support to mitigate transitional problems. Mr Asafo-Adei said the merger would provide a common depository platform for the two institutions and harmonisation of trading as well as clearing and settlement practices.“This will generate benefits and thus create significant additional value for all market participants,” he said. The merger will make for a more efficient trading of fixed income and equity securities and reduce operational costs for the merged depository and lower transaction cost for market participants. Mr Asafo-Adei said 76% of shares certificates had been dematerialised and 75,978 securities accounts had been opened, enhancing trading volumes and values.
BoG to offload shares in the ADB The Bank of Ghana (BoG) is expected to offload its shares in the Agricultural Development Bank (ADB) within two months. The central bank, which has 42 percent shares in the ADB last year announced it will offload its shares by the end of that year but failed to. The Board Chairman of ADB, Nana Soglo Alloh IV who disclosed this to an Accra-based radio station said “almost everything is done as far as we are concerned, we are just waiting for the government to give us the go ahead. I’ve just finished talking to the deputy minister who represented the minister for finance and economic planning and I’m hoping within the next month or two they will give us the go ahead.” The offloading of the bank of Ghana shares will lead to the listing of ADB on the Ghana Stock Exchange. He said, “The money is not going to come to the ADB, if they offload their shares, it is going to go to the bank of Ghana, we also want
44
to have a situation where once they offload their shares, we can also raise capital.” The bank also expects the government of Ghana to offload its 52 percent stake in the bank soon. Nana Soglo Alloh IV explained that, ‘’The bank of Ghana is ready to offload its shares, but the government I am not too sure, if they are ready yet. But then I think it’s crucial that the government must also have an input in the bank.” Meanwhile the Agricultural Development Bank (ADB) has announced a two year strategic plan to open twenty two new branches and increase its presences across the country. As part of the 2014-2016 strategic plan, the bank is expected to increase its branches from 78 to 100. This is to expand the bank’s customer base and deliver upon the bank’s core mandate of providing funds for agricultural development. The two year strategic plan comes after a rebranding program to launch a new logo for the bank as part of efforts to transform the bank into a modern financial institution.
GHANA BUSINESS & FINANCE
JAN - FEB 2014
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North Dzorwulu Ghana Business & Finance, House No. 7, Lamb Street (off Farrar Avenue), Adabraka, Accra, Ghana P. O. Box O 772, Osu, Accra, Ghana, Tel: +233 302 240 786, Fax: +233 302 240 783, email: ghanabusinessfinance@gmail.com www.ghanabizfinance.com
COMMODITIES
World food prices stay high, but steady - FAO The Food and Agriculture Organization (FAO) Food Price Index has revealed that in 2013 the world food prices stayed high, but steady saying that it was the third highest year on record. It averaged 206.7 points in December, nearly unchanged from the previous month, with a sharp increase in dairy prices and high meat values balancing out a steep decline in sugar quotations and lower cereal and oil prices. The report revealed that for 2013 as a whole, the index averaged 209.9 points - down 1.6 per cent from 2012, and well below 2011’s peak of 230.1, but still the third highest annual value on record. It said large supplies pushed down international prices of cereals (with the exception of rice), oils and sugar. However, dairy values peaked in 2013, and meat also hit a record. “Last month, the FAO Food Price Index remained elevated as strong demand for certain high-protein foods continued to drive up prices overall, countering falling prices of major food crops after last year’s abundant harvests,” said FAO Economist Abdolreza Abbassian. FAO’s Food Price Index is a trade-weighted index that measures prices of five major food commodities on international markets: cereals, dairy products, meat, sugar, and vegetable oils. The FAO Cereal Price Index averaged 191.5 points in December, down
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2.8 points from November, and the lowest monthly value since August 2010. It said the large global supplies, following record harvests in 2013, continued to exert downward pressure on international prices of wheat and maize in particular. By contrast, rice prices were up slightly in December. For all of 2013, the Cereal Price Index averaged 219.2 points, down as much as 17 points, or 7.2 per cent, from 2012. FAO’s Sugar Price Index averaged 234.9 points in December, a sharp slide of 15.8 points from November, the third consecutive monthly decline, with the sugarcane harvest in Brazil - the world’s largest sugar producer and exporter - exceeding expectations. It said overall, in 2013, sugar prices were 18 per cent lower than in 2012. According to the report dairy prices on the other hand, were up for both December and for 2013 as a whole. The FAO Dairy Price Index averaged 264.6
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WORLD COMMODITIES OUTLOOK points in December, a rise of 13.2 points over November, declaring that demand for milk powder, especially from China, remained strong, and processors in the southern hemisphere were focusing on the product rather than on butter and cheese. It said during 2013, the dairy index averaged 243 points - its highest annual value since its inception.
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image courtesy: www.99fm.com
The FAO Meat Price Index averaged 188.1 points in December, just slightly above its November level. It said prices for bovine and pig meat moved higher: demand from China and Japan had resulted in beef prices showing consistent growth since last June. Prices for poultry were stable, while those for sheep meat moved lower. Still, in 2013, the index remained historically high, well above pre-2011 levels. FAO’s Vegetable Oil Price Index averaged 196 points in December, a decrease of 2.5 points from November. For 2013 as a whole, the index averaged 193 points - well below 2012’s average of 224 points - with palm oil falling to a 4-year low.
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WORLD OUTLOOK
PIMCO Cyclical Outlook:
Synchronized Optimism The global economy endured several challenges in 2013; yet it still managed to maintain steady, albeit muted, growth. In the United States, a deliberate tightening of fiscal policy was accompanied by a spike in interest rates just as the housing recovery was picking up steam mid-year. n the eurozone, bank deleveraging accelerated in the face of In the United States, the abatement of fiscal policy tightening already tight fiscal policy even as the economy remained in a combined with steady improvements in labor market demand recession for the year. In Japan, households and corporations and higher asset valuations is likely to drive real economic continued to adjust to their new reality of increased growth from its current 1.8% rate toward 2.25% – 2.75% next dependence on expensive imported energy. In China, the year. Included in this view are a continued improvement in emergence of shadow banking and runaway credit growth demand for housing and consumer durables, somewhat faster became the center of attention, yielding to tighter liquidity household income growth and a small acceleration in nonand credit conditions and a broad-based questioning of China’s residential investment growth on the back of extraordinarily future growth drivers. And in other emerging easy financial conditions that benefit market countries like Brazil, India and Turkey, “ PIMCO expects corporations. Expect the eurozone to finally weaker-than-expected economic performance the global emerge from recession in 2014. With monetary combined with higher-than-expected inflation economy to grow policy clipping the nasty left tail of a sudden induced capital outflows, weaker currencies stop in eurozone growth, and fiscal policy between 2.5% – and ultimately higher interest rates. transitioning from tight to broadly neutral, 3% next year.” select steady improvements in competitiveness Despite the diverse nature of these challenges, should see the private economy grow going the global economy was able to grow between 2% – 2.5% during forward, albeit very slowly. We expect eurozone growth of the year, after adjusting for inflation, equaling its performance about 0.25% – 0.75% next year. from 2012. The global growth story in 2013 was closely linked to the gradual healing in the U.S. economy – see, for example, Japan is likely to continue to grow in 2014 with the continued notable recent improvements in the labor market and stronger assistance of extraordinarily expansive policies. The lagged household and company balance sheets, all of which has been positive effects of easy monetary policy will be felt in steady underpinned by extraordinary central bank policies. consumption, higher investment and better net trade contributions. But, tighter fiscal policy via higher consumption The new year promises to be a better year. Many of the challenges tax rates will likely cap the growth trajectory somewhat as faced during 2013 have either progressed toward a point of Japan looks to find ways to transition to a self-sustained growth self-exhaustion or are being overcome via alternatives to yield path in the year ahead. Expect Japan to grow between 1% – a brighter outlook for global growth in 2014. PIMCO expects 1.5% next year. In China, external demand will likely improve the global economy to grow between 2.5% – 3% next year. in 2014 as the U.S. and eurozone economies grow faster. cont’d on page 50 48
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WORLD OUTLOOK
Domestic demand will likely slow somewhat as a clampdown on extraneous investment feeds through the economy and the central government’s focus shifts away from “growth at any cost.” China, from an external perspective, promises to look and feel like a different economy in the year(s) ahead. Greater focus on China’s household demand and less focus on its industrial demand will change China’s impact on the global economy slowly but surely. We expect about 7% growth in China next year.
“...eurozone sovereigns will need to continue to improve their balance sheets in order to attract foreign investors...” In other emerging markets, growth and inflation are expected to remain steady, with continued policy efforts focused on reducing inflation and raising real growth. While bouts of financial market volatility are likely to continue to be a stress point for certain emerging economies, we expect the major emerging economies (ex China) to grow by about 3% next year. Global inflation will likely remain contained in 2014 due to several factors. Below-potential aggregate demand growth, stillsizeable output gaps, high unemployment rates and marked improvements in the supply-demand balance for energy will likely keep inflation rates below central bank targets in most economies.
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What are the risks to this overall sanguine global growth and inflation outlook? In the United States, a complicated exit from extraordinary monetary policy could dampen the housing recovery in 2014, as rising interest rates, higher prices and stagnant incomes undermine affordability. On the flip side, dramatically improved financial conditions for corporations could induce more risk taking in the form of faster capital expenditure growth and/or labor market demand in 2014. In the eurozone, new stress tests for banks are likely to lead to further balance sheet deleveraging. On the margin, this means eurozone sovereigns will need to continue to improve their balance sheets in order to attract foreign investors, leading to generally tight fiscal policies and growth headwinds persisting for some time to come. In Japan, consumption tax increases could offset the improvement in inflation expectations and dampen domestic demand growth more than we expect. However, this can and likely will be offset by supplementary fiscal stimulus if the need arises. In China, non-performing loans remain a key but manageable risk. It’s the other emerging market economies that we are most concerned about. Returning these economies to their sustainable growth paths will require continued policy adjustments, both cyclical and structural. But with election years looming for many of these countries in 2014–2015, the probability of difficult decisions being delayed remains uncomfortably high. Then there is the medium term, where the global economy needs to see a true transition from policydriven solutions to aggregate global final demand in order for truly sustainable growth to take hold.
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MANAGEMENT
Why isn’t ‘Servant Leadership’ more prevalent? by Jim Heskett
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MANAGEMENT
Servant leadership is an age-old concept, a term loosely used to suggest that a leader’s primary role is to serve others, especially employees. I witnessed a practical example of it at a ServiceMaster board meeting in the 1990s when CEO William Pollard spilled a cup of coffee prior to the board meeting. Instead of summoning someone to clean it up, he asked a colleague to get him cleaning compound and a cloth, things easily found in a company that provided cleaning services. Whereupon he proceeded to get down on his hands and knees to clean up the spill himself. The remarkable thing was that board members and employees alike hardly noticed as he did it. It was as if it was expected in a company with self-proclaimed servant leadership. Lao-Tzu wrote about servant leadership in the fifth-century BC: “The highest type of ruler is one of whose existence the people are barely aware…. The Sage is self-effacing and scanty of words. When his task is accomplished and things have been completed, all the people say, ‘We ourselves have achieved it!’” It is natural, rightly or wrongly, to relate servant leadership to the concept of an inverted pyramid organization in which top management “reports” upward to lower levels of management. At other times it has been associated with organizations that have near-theological values (for example, Max De Pree’s leadership at Herman Miller, as expressed in his book, Leadership is an Art, that emphasizes the importance of love, elegance, caring, and inclusivity as central elements of management). In that regard, it is also akin to the pope’s annual washing and kissing of the feet as part of the Holy Thursday rite.
Now it appears that a group of organizational psychologists, led by Adam Grant, are attempting to measure the impact of servant leadership on leaders, not just those being led. Grant describes research in his recent book, Give and Take, that suggests that servant leaders are not only more highly regarded than others by their employees and not only feel better about themselves at the end of the day but are more productive as well. His thesis is that servant leaders are the beneficiaries of important contacts, information, and insights that make them more effective and productive in what they do even though they spend a great deal of their time sharing what they learn and helping others through such things as career counseling, suggesting contacts, and recommending new ways of doing things.
“ Do those served grow as persons … (and become) more likely themselves to become servants? ”
The modern era of servant leadership began with a paper, The Servant as Leader, written by Robert Greenleaf in 1970. In it, he said: “The servant leader is servant first … It begins with the natural feeling that one wants to serve, to serve first. Then conscious choice brings one to aspire to lead … (vs. one who is leader first…) … The best test, and difficult to administer, is: Do those served grow as persons … (and become) more likely themselves to become servants?”
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Further, servant leaders don’t waste much time deciding to whom to give and in what order. They give to everyone in their organizations. Grant concludes that giving can be exhausting but also self-replenishing. So in his seemingly tireless efforts to give, described in the book, Grant makes it a practice to give to everyone until he detects a habitual “taker” that can be eliminated from his “gift list.” Servant leadership is only one approach to leading, and it isn’t for everyone. But if servant leadership is as effective as portrayed in recent research, why isn’t it more prevalent? What do you think?
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FOREX RATES
Interbank Forex Rates as at Tuesday 07th January, 2014 Currency
Pairs Code
Buying
Selling
U.S Dollar
USDGHS
2.2933
2.2958
Pound Sterling
GBPGHS
3.7502
3.7548
Swiss Franc
CHFGHS
2.5217
2.5232
Australian Dollar
AUDGHS
2.0435
2.0471
Canadian Dollar
CADGHS
2.0956
2.0973
Danish Kroner
DKKGHS
0.4179
0.4182
Japanese Yen
JPYGHS
0.0219
0.0220
New Zealand Dollar
NZDGHS
1.9130
1.9161
Norwegian Kroner
NOKGHS
0.3739
0.3743
Swedish Kroner
SEKGHS
0.3543
0.3546
S/African Rand
ZARGHS
0.2105
0.2107
Euro
EURGHS 3.1182 3.1212
Chinese Reminbi
CNYGHS
BCEAO
GHSXOF 210.16 210.37
Dalasi
GHSGMD 16.59 16.60
Ouguiya
GHSMRO 125.16 125.30
Naira
GHSNGN 69.39 69.47
Leone
GHSSLL
WAUA
WAUGHS 0.2831 0.2831
0.3793
0.3797
1878.10 1880.15
Source: www.bog.gov.gh
The Ghana Cedi
The USDGHS spot exchange rate appreciated 0.0750 or 3.26 percent during the last 30 days. From 2007 until 2014, the USDGHS averaged 1.5200 reaching an all time high of 2.3900 in January of 2014 and a record low of 0.9000 in July of 2007. The USDGHS spot exchange rate specifies how much one currency, the USD, is currently worth in terms of the other, the GHS. While the USDGHS spot exchange rate is quoted and exchanged in the same day, the USDGHS forward rate is quoted today but for delivery and payment on a specific future date.
Source: www.tradingeconomics.com 54
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JOB OPENINGS
Collateral Management Services - Manager
Country Director - Ghana As Country Director you will be responsible for the overall strategy, management and development of the national family planning and sexual reproductive health programme in Ghana. You will lead a skilled team of professionals to deliver lifesaving services through clinical centres, mobile outreach teams, social franchising and social marketing. You will prepare and execute annual budgets, marketing plans and work plans; develop and plan new business opportunities, oversee financial administrative and logistical resources to ensure these adhere to MSI minimum standards and assure quality operations are in line with annual and long term strategic goals and objectives Location: Accra Minimum Qualification: Previous experience in a senior management and leadership position with a track record of achieving results and driving growth. International experience is essential, ideally gained in developing nations. Contact: careers.mariestopes.org.uk Job Expires: 31/01/2014
Senior Monitoring and Evaluation Officer, Malaria Control Program Specifically, the monitoring and evaluation officer will provide technical assistance to the country teams in carrying out the essential elements of project monitoring and evaluation, including: Design and promote tools and materials to support monitoring and evaluation activities across MalariaCare countries; Determine and support development of appropriate data management and analysis systems; Prepare technical documents, protocols, presentations, manuals, and reports; Build capacity in qualitative, mixed method, and M&E methodologies; Conduct capacity building with M&E staff across the organization. Location: Accra Minimum Qualification: A Master’s degree in public health (health systems, health policy and management) or in social sciences, or in a related field plus a minimum of 5-7 years of relevant experience, with at least 3 years of experience in leading monitoring and evaluation of complex health and development programs, process evaluations, and data management and analysis. Contact: visit path.silkroad.com
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The person will be responsible for the planning, monitoring, co-ordination, supervision and control of all operational activities and supervise the entire team from the office to site, under all CMA & SMA operational activities business portfolios, ensuring Collateral Management Agreements and Stock Monitoring Agreements are executed, claims free, and in accordance to policies, procedures, work instructions, templates and forms as contained in the SGS CMA/ SMA Policy, Standard Operating Procedures and Instructions Manual by trained competent staff with adequate resources. Location: Accra Minimum Qualification: A minimum of First Degree in Accounting, Marketing or Purchasing & Supply with at least five (5) years working experience in a related job; strategic management and sales and marketing skills; good analytical, quantitative and verbal aptitude skills; Ability to consistently meet KPI Contact: visit sgs.com to apply
Operations Manager - Upstream Chemical Candidate will manage the operations in Accra, Ghana, for the Upstream Chemical product line with responsibilities which may include employee management and development, inventory management, sales, engineering, maintenance, operations, service, HSE, quality, training, planning and budget management. Location: Accra Minimum Qualification: Bachelor’s Degree preferred with 8+ years experience in field and operations. Deepwater experience needed. Contact: visit bakerhughes.taleo.net
Senior Geologist This role demands the ability to provide high quality geological and geophysical evaluation overseeing both operated and nonoperated assets. You will be responsible for generating new prospects within the Ghanaian licenses. Your role will extend to supporting the planning, drilling and post well evaluations of projects you take through to development. Responsibilities will also include the definition of data acquisition programmes and the geological studies lined to your plays. Location: Accra Minimum Qualification: The ideal candidate will fulfil the following criteria: Masters or PhD in Geology; 10 years’ experience working as an exploration or development geologist in an operating company; Proven oil finder; and a history of strong leadership and mentoring Contact: Alice Christianson: alice@turnerlovell.com or call +44 (0)207 448 1105
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BOOK REVIEW
The Bronx, the Bench and the Life in Between ‘My Beloved World,’ a Memoir by Sonia Sotomayo “I think this fish has found her pond.” That’s what Sonia Sotomayor told a friend after her first day in open court as a new federal judge back in 1992. She had been so terrified, she recalls in her new memoir, that her knees were literally knocking together as she began addressing the courtroom from the bench. And yet the minute she jumps in with a question for the litigants, the panic passed, and she realized she would be just fine. More than fine, it turns out: from federal court for the Southern District of New York she would move on to the United States Court of Appeals for the Second Circuit, and in 2009 she was sworn in as an associate justice of the Supreme Court. In nominating Judge Sotomayor to the highest court in the land, President Obama pointed out that her life story was the embodiment of the American dream. She grew up poor in a Bronx housing project at a time when gangs were carving up the neighborhood, learned she had juvenile diabetes when she was 7 and lost her father a couple of years later. She would go on to Princeton (where she won the prestigious Pyne Prize), Yale Law School, the Manhattan district attorney’s office and ultimately the Supreme Court, where she became the nation’s first Hispanic justice. But if the outlines of Justice Sotomayor’s life are well known by now, her searching and emotionally intimate memoir, “My Beloved World,” nonetheless has the power to surprise and move the reader. Whereas the justice’s legal writings have been described by reporters as dry, methodical and technical, this account of her life is revealing, keenly observed and deeply felt. The book sheds little new light on how she views issues that might come before the Supreme Court (aside from some candid talk about resistance she encountered, as a student, from critics of
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affirmative action), but it stands very much on its own — not unlike Barack Obama’s first book, “Dreams From My Father” — as a compelling and powerfully written memoir about identity and coming of age. Through evocative, plainspoken prose Justice Sotomayor engages in an earnest, soul searching look back at her childhood as the daughter of Puerto Rican parents and at her education and years as a lawyer. She provides a visceral sense of what it was like to grow up with a dysfunctional family, overshadowed by her alcoholic father’s unpredictable behavior, and what it was like to grow up in the Bronx in the 1960s and ’70s, in a neighborhood where stairwells were to be avoided (because of muggers and addicts shooting up), and where tourniquets and glassine packets littered the sidewalks. The young Sonia’s best friend was her cousin Nelson, with whom she began childhood “almost as twins, inseparable and, in our own eyes, virtually identical” — except that “he was smarter” and “had the father I wished for.” Nelson would become a heroin addict and die of AIDS before his 30th birthday. Why, Justice Sotomayor wonders, did she manage to survive when Nelson failed, “consumed by the same dangers that had surrounded me?” The culture of machismo played a role, she writes, the “culture that pushes boys out onto the streets while protecting girls,” but her own force of will would prove crucial too.
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AUTO REVIEW
2015 FORD F-150:
Competitors can’t hold a magnet to the latest F-series The importance of the Ford F-150 pickup probably doesn’t need to be highlighted - for the past 30-odd years, the F-150 has been the bestselling vehicle in the U.S. To you, this means you’ll see a lot of F-150s every day, old and new, doesn’t matter, you will see one—or 150. With the F-150’s relatively comfortable sales dominance in both the pickup segment and the passenger-vehicle market overall, it would be understandable—smart, even—for Ford to
simply nip the truck here and tuck it there and call the result “new.” However, with the 2015 F-150, Ford did not play this safe game; it instead turned the playbook upside-down and turned out a truly new product. For such a stoically American vehicle format, the pickup truck rarely invokes the word “revolutionary,” but we think Ford’s new workhorse might just have earned such consideration. That’s because instead of a steel cab, the F-150 has a lightweight (and surely pricey) aluminum cab, which chops up to a claimed 700 pounds from the truck’s curb weight. The pickup truck hasn’t evolved much; most still have a solid axle in back (and even up front),a ladder frame, and a lot of steel throughout. Ford looked at the truck’s layout and found that while steel is certainly useful in the frame, it is not really that pertinent in the cab and bed. Enter the F-150’s aluminum cab and bed, which are bolted to a fully boxed steel frame. That frame, too, has seen a weight reduction, thanks to its higher mix of high-strength steel (77 percent, versus 23 percent in the outgoing rig), of 60 pounds. Ford says the new chassis is more rigid, too, and it still rides on leaf springs in back and coil springs up front.
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For reservations, contact your favourite travel agent or call SAA on 0302 783676 / 0244 344 583. Visit our office at the 1st floor Millennium Height Building.