GB&F September 2014 by Ghana Business & Finance

SEPTEMBER 2014 / ISSUE 040 GH¢10.00

Driving the growth agenda A special report on Ghana’s ICT sector USA..........................................$5.00 UNITED KINGDOM.....................£3.00 EUROPE....................................€3.50

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THE FIRST BUSINESS READ IN GHANA

16... Energy

GB&F

Ghana’s energy challenges are among its most daunting. With a little inventiveness however, it could surmount them. And to achieve its ambition of industrialization, it should.

General Manager Josiah Spio-Garbrah jspiogarbrah@ghanabizfinance.com adverts@ghanabizfinance.com +233 264 510 396 Editor S. Kwame Appiah kappiah@ghanabizfinance.com

18... A special report on the information and communication technology sector in Ghana

Columnists Jerry Halm Yvonne MacCarthy Julius Caesar-Tokoli Contributors Martin Luther King Oppong Baah Anthony Sedzro Georgina Adjei Ayuureyisiya Kapini Atafori Art-Graphics Manager, Design Benjamin Tetteh Design & Production Daniel Sackey Yobo Circulation & Subscription Jeffrey Dapaah subscription@ghanabizfinance.com 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 info@ghanabizfinance.com Brand Advisor

20... ICT Special: Foreword

A message from the Minister of Communications and Information

SEPTEMBER 2014 / ISSUE 040 Front Cover: DR. EDWARD OMANE BOAMAH Minister of Communications

Contents 5...

Editor’s suite

6...

Briefs

News from Ghana and elsewhere

21... ICT Special: An overview of the sector

How the ICT sector is shaping up in the country

22... ICT Special: Players

Huawei, a growing global brand, is fast becoming one of the country’s distinguished corporate citizens

24... ICT Special: News

The people and events that are shaping the sector in Ghana

10... Economy

Behind all the gloom, is there some good news about the Ghanaian economy?

12... With Ghana finally accepting to

(re)enter an IMF programme, what implications would there be for the economy and those who rely on it?

Dmax Studios in Malta, EU. (www.dmax.tv) Credits GNA myjoyonline Daily Graphic Bloomberg radioxyzonline.com citifmonline Mergermarket Group Corporate Council on Africa ghanabusinessnews.com

Ghana Business & Finance magazine is published by

14... Banking and Finance

While the microfinance industry is doubtless of great help to many a small scale entrepreneur, could there be a regulatory blind spot that is endangering users? Recent events show that there might be.

Find us 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.

SEPTEMBER 2014

Energy: Page 16

linkedin.com/GhanaBusiness&Finance facebook.com/GBandF @ghana_business

GHANA BUSINESS & FINANCE

Letters to the Editor send your letters to the editor at

editor@ghanabizfinance.com

26... ICT Special: In focus

Five of the growing tech companies in Ghana that have the potential to change the way we live, interact and relax in the future

28... ICT Special: Feature

How the ICT sector is helping reform public service delivery in the country.

32... ICT Special: Players

GIFEC, a state agency, is achieving global renown in its quest to make ICT widely accessible locally.

36... ICT Special: Players

Vodafone Ghana, one of the major global brands in Ghana’s competitive field, is serving up new and innovative solutions to customers while also pursuing corporate social responsibility projects through its specialised arm.

40... ICT Special: Players

The National Communications Authority runs a tight regulatory ship, the result of which is a vibrant, competitive field that is delivering improved services to users.

Perspectives: Page 50

42... ICT Special: Infrastructure

A proposed technology park in the port city of Tema promises great opportunities for both innovators and investors.

45... Recommended Reading We review Pede Holist’s short story, Foreign Aid.

46... Global Outlook

Africa’s growing power is impacting relations with the west, evidenced in new arrangements that Europe and America are seeking with the continent.

54... Executive Selection

Openings in the C-suites of corporate Ghana.

56... Conferences and events

Upcoming events around that business leaders need to keep an eye on.

57... Stats and indices

The Ghanaian economy by the numbers.

58... Commodities

Market prices for commodities as compiled by Esoko.

48... The

African Development Bank’s West Africa Monitor reviews developments on the sub-region and finds largely positive developments on the economic front.

50... Perspectives

Julius Caesar Tokoli has another look at the centralized concept of management

52... Yvonne Maccarthy believes that ICT Special: Page 42

under the cloud of customer complaints can be the silver lining of business opportunity.

GHANA BUSINESS & FINANCE

Energy: Page 46

SEPTEMBER 2014

EDITOR’S SUITE

Bright, young lights This past month, two bright spots shone through the bleakness that has come to characterise the local news. mPedigree, a wholly owned Ghanaian technology company, working with the Pharmaceutical Society of Ghana, launched the “Prevent!” initiative to deal with the danger of fake drugs in local pharmacies and chemists’. Using technology pioneered by mPedigree, buyers would now be able to text a unique code on the packaging of drugs, to ascertain the genuineness of the product. While acceptance from Ghana lags behind similar schemes in other African and Asian countries, it was nevertheless heartwarming that customers and producers could now have the benefit of a potent weapon in the battle against counterfeit medication. There was another reason to smile when Sayachat, also a Ghanaian startup, was acquired by an American company. Sayachat aims to be the whatsapp of feature phones and brings free text and multimedia messaging to phones that would otherwise not have them. With this acquisition, the technology will now be available to even more people than the young trio behind it had been physically able to serve. These events are important for several reasons. The unifying feature however, is that they demonstrate the capacity of young Ghanaians to deliver in the field of information and communication technology and show how it can be used as a force for good in our society. Again, in a country which faces the twin challenges of wealth and employment creation, these two show that it is possible, relying on ICT to overcome these. These are among the reasons that, working with the Ministry of Communications and Information, we have produced a special report on Ghana’s ICT sector. Due to reforms that began in the 1990s and continue to evolve presently, Ghana has quite a robust ICT environment, in which the major mobile providers are only the most visible. It is not just in the private sector that ICT is important. For the public sector, the use of ICT presents a great opportunity to scale up efficiency, minimise waste and tackle graft. We are heartened by some of the initiatives that government has embarked on, but we urge that it takes even greater advantage of new technologies in providing public services and dealing with social issues such as education and crime. In doing so, it will be able to count on a growing army of young Ghanaians, skilled in ICT – trained home and abroad – who daily show the sort of innovation that this country needs and must encourage. Indeed, the public sector can achieve many of its ends by simply supporting some of these young men and women to give rein to their creative urges. Companies like Google and Facebook have changed the world through ICT. There are optimists who believe that the next tech giant could come out of Africa. Saya and mPedigree show that they are not completely delusional. A little support could just prove them right. We hope you enjoy the issue.

S. Kwame Appiah Acting Editor +233 0208 350555

SEPTEMBER 2014

GHANA BUSINESS & FINANCE

BRIEFS

Kirusa acquires Ghanaian messaging app Saya

United States’ based Kirusa, a leader in social media mobile apps and voice messaging globally, has acquired Ghana-based Saya, one of Africa’s most promising startups. Saya is credited with cutting the price of mobile messaging by over 1,000 times and drastically improving its use for the hundreds of millions of mobile subscribers still not using smartphones in Africa and other emerging markets. Kirusa has bought Saya’s technology and intellectual property, and Saya’s workforce will now serve Kirusa’s mobile apps. Founded in 2011 by Badu Boahen and Robert Lamptey, Saya quickly gained a lot of users and media attention. They received over 400,000 downloads within the first two months and according to Chief Executive Officer and co-founder Robert Lamptey, “Five months

after the launch we got 14 million people who had been invited by their friends to use the service,” he told How We Made It In Africa. And their launch was quite splashy – as one of seven finalists at Tech Disrupt 2012. However, Saya suffered from a lack of funding and soon after Tech Disrupt, needed to return to stealth mode because it could not accommodate the millions of potential users on their waiting list. Though Mr Lamptey did not get as much funding as he would have liked, he raised enough money to deliver the service to those on the waiting list, scale the operation from the original twoman team to eight employees, and develop a smartphone version of Saya’s messaging service, he told TechLoy in 2013. It is unclear how much Saya was acquired for, or how much funding they have raised up until now. Mr Lamptey threw out a rough range of “hundreds of thousands of dollars” to How We Made It In Africa earlier this year.

BRICS launches new development bank

PwC to advise on state airline

Brazil, Russia, India, China and South Africa, known collectively as the “BRICS,” announced the creation of a new, USD 100 billion development bank. The project is aimed at lending money to developing nations for investments, much like how the American and European-backed International Monetary Fund (IMF) and World Bank operate. BRICS nations have 40 percent of the world’s population and 20 percent of global economic output. However, they have been blocked from gaining greater voting rights at the IMF, largely because of opposition in the U.S. Congress. Some observers see the new bank as a competitor to the IMF and World Bank that will provide funds to developing countries to build infrastructure and shore up their economies to better handle crises. The BRICS nations also plan to establish a reserve fund to which China will make the biggest contribution – USD 41 billion. The New Development Bank is expected to be based in Shanghai and have an Indian citizen as its first chief executive. Skeptics say the bank faces challenges over whether the creditor nations will use the institution to promote their own national interests. Parts of the new bank still must be approved by local legislatures. Officials say they hope to make the first loan in 2016.

GHANA BUSINESS & FINANCE

Ghana has appointed Price waterhouse Coopers to advise on starting a national airline. Dzifa Attivor, minister of transport said PwC will “guide in setting up a new airline and choose a private sector partner”. The government wants the carrier to be up and running by March next year. West Africa’s second-biggest economy has not had a state-owned carrier since Ghana International Airlines stopped operating in 2010. Domestic flights are operated by privately owned airlines, including Antrak Air and Starbow. Ms Ativor also said that Ghana plans to build another international airport in the Greater Accra Region. The government is in the process of land acquisitions, she added.

SEPTEMBER 2014

Businesses sentiment has worsened sharply in Ghana, according to the latest Association of Ghana Industries (AGI) Business Barometer Survey covering the second quarter of 2014. From an index of 90.13 in the first quarter, the business confidence index fell sharply to 22.42 in the second quarter of 2014, Seth Twum-Akwaboah, the Executive Director of the AGI said. He told a media conference that the readings were consistent with current developments in the economy, including the depreciation of the Cedi currency, inconsistent

availability of power supply and the multiplicity of taxes, which emerged as the top three challenges businesses faced in the second quarter. “These do not come as a surprise. Measures by the Bank of Ghana to control the cedi depreciation against major trading currencies seemed to have had little impact. Foreign earnings that would have been repatriated are likely still being kept in offshore accounts,” he added. “As uncertainty lingered over the entire business climate, planning into the future remained a major hurdle for many captains of industry.” The Business Barometer Indicator is an AGI proprietary tool that measures the level of confidence in the business environment and predicts short-term business tends. It simply expresses the state of the business climate numerically in one figure with 100 as the base index. It is calculated out of “current” business mood and “expectation” for the future. Out of the CEOs interviewed, 38 per cent believe the business climate has not changed between Q1 and Q2, 2014. In contrast, only seven per cent are optimistic the business climate will improve in the next six months. On challenges, the depreciation of the cedi, the availability of power supply, multiplicity of taxes and delayed payments ranked topmost for the respondents.

Surfline launches country’s first 4G data network

Airtel mulling Ghana consolidation

Surfline Communications has launched the country’s first 4G data network in Ghana in partnership with French technology company Alcatel-Lucent, making it the sixth nation in subSaharan Africa to get the high speed service. The wholly-owned company invested more than $100 million for the first phase of the Long-Term Evolution (LTE) network, which has 300 cell sites, according to its chairman, John Taylor, who owns a string of oil-related businesses and wholly owns Surfline. The pre-paid data-only service is available in the capital and the port city of Tema, but Mr Taylor said Surfline aimed to go nationwide within two years. “We want to fill the void by providing high speed connectivity to facilitate e-education, e-commerce and facilitate long distance activities especially by people living outside the cities,” he said. South Africa’s MTN is the dominant mobile phone company in Ghana, less than 20 percent of whose population uses the Internet. Rapid cell and internet growth across Africa is making it an increasingly attractive proposition for companies looking to sell data services.

SEPTEMBER 2014

Bharti Airtel, the parent company of Ghanaian cellco Airtel, is reportedly mulling an acquisition of Millicom’s local unit Tigo Ghana, thus kick-starting the long-anticipated consolidation in the country’s wireless telecoms market, TMT Finance reports. A source said ‘Ghana is ripe for consolidation. It is only a matter of time before we see more action – deals across Africa are bubbling under the surface and there are plenty of opportunities around. The smaller operators – third, fourth, fifth place – are calling it a day and selling up.’ Telecoms watchdog the National Communications Authority (NCA) reported that Airtel Ghana is the country’s fourth largest telco with 3.570 million users at end-June 2014, while Tigo had 4.035 million signed up by that date. If combined, the two units will have total customer base of more than 7.8 million, thus surpassing second-placed Vodafone (6.678 million users at end-June 2014), and effectively challenging market leader MTN Ghana (13.439 million). Glo Mobile and Expresso have 1.371 million and 127,505 users at Q2 2014, respectively. Sudatel Telecom Group (STG) revealed earlier in the year that it had agreed the sale of shares in its Ghanaian mobile unit Expresso (Kasapa Telecom) during Q2 2014, although the telco stopped short of naming the buyer or the financial terms of the deal.

GHANA BUSINESS & FINANCE

BRIEFS

Business confidence worsens sharply in Ghana

BRIEFS

Atuabo Gas Plant completed The Atuabo Gas Processing Plant has finally been completed after the successful hydro-testing of the pipelines from offshore to the facility. The facility, which has the capacity to generate about 140 million standard cubic feet of natural gas a day, is estimated to save the country more than USD 500 million annually when it is substituted for light crude oil in the generation of power. In addition, it will produce more than 70 per cent of the estimated 240,000 tonnes of liquefied petroleum gas (LPG) required annually for domestic use in the country. The successful hydro-testing confirmed the integrity of the pipelines

and it was left to the Jubilee partners to hook the pipes onto the FPSO Kwame Nkrumah’s production platform for gas processing to commence. Dr George Adjah-Sipa Yankey, the Chief Executive Officer of the Ghana National Gas Company (Ghana Gas), owners and operators of the facility made this known in interactions with chiefs and officials from the Western Regional House of Chiefs who toured the plant in August. Dr Yankey said Ghana Gas was undergoing a pre-commissioning exercise to accept gas for processing and onward transmission to the Volta River Authority’s (VRA’s) Thermal Plant at

Ghana Airports Company makes profit Ghana Airports Company Limited (GACL) has announced its return to profit on the back of improved revenues and effective management, recording a net profit of GHC 19.1 million for the year ending December, 2013. The company’s fortunes are up from a loss of GHC 84.2 million in 2012. Charles Asare, acting Managing Director, GACL, who was speaking at the company’s second Annual General Meeting (AGM) in Accra, said aeronautical revenues for 2013 rose to GHC 287,525, an increase of 37 per cent over the 2012 figure of GHC 63, 875. This was the result of monies accrued from the Airport Passenger Service Charge (APSC), as well as favourable exchange rates. From December 2013, the GACL began retention of the full amount of the APSC in line with government policy, which was passed in May 2013. Non Aeronautical revenue on the other hand, grew marginally by only 2.83 percent from the 2012 figure of GHC 24,369 to GHC 25,062 in 2013. This minor increase was from

GHANA BUSINESS & FINANCE

Aboadze for power generation. The VRA is presently installing facilities at its Aboadze plant to enable it to receive gas from Atuabo. Dr Yankey said to ensure a shorter commissioning period, engineers had carried out a series of commissions of some areas to reduce the uncertainties involved in the integrated commissioning of the entire system. He said although the pipes travelled over 111 kilometres through many communities and districts to the Aboadze Plant, safety measures had been taken to ensure that those communities were well protected. According to him, to ensure the safety of the pipes, surveillance checks had been put in place to protect the entire right of way. Ghana is said to have a proven gas reserve of more than five trillion standard cubic feet (TCF) yet to be tapped. The Jubilee project, which is currently producing oil offshore Ghana, has associated gas of more than 1.2 trillion TCF, which is ready for Ghana Gas to start processing. Under the Jubilee project, Ghana is expected to have 200 billion TCF of free gas for processing but subsequent ones will be of economic value to the partners, which would be priced accordingly. It is expected that other activities offshore will increase the country’s reserve.

revenue collected from car parks, which increased by GHC 0.8 million and rental income, by GHC 0.3 million. Royalties, however, decreased by GHC 0.5 million from GHC 15 million to GHC 14.5 million in 2013. Total expenses for 2013, including a depreciation of GHC 27,389, was GHC 96,196 down from a total of GHC 179, 474 (including depreciation of GHC 127, 492) in 2012. Mr. Asare noted that the favourable operational and financial results of the company was in line with positive growth in the aviation industry in general and Ghana in particular, adding that GACL believed the growth in the sector would continue and were developing appropriate strategies to address the challenges and opportunities of the industry. In the year under review, international aircraft movement improved by 6.1 percent to 23,437 from 22,082 in 2012. This was as a result of the operations of new entrants and increased flight frequencies by a number of existing airlines at the KIA, and in spite of the suspension of operations by some. Domestic aircraft movements saw a faster growth of 28.9 percent in 2013 to 18,497 from 14,352 in 2012 attributable to growing demand hinged on reliable air service and competitive values as compared to road transport.

SEPTEMBER 2014

BRIEFS

Are Ghana’s petroleum contracts null and void? U.S., Ghana sign compact to transform power sector

Energy expert and Senior Research Officer at Ghana Institute of Governance and Security, Solomon Kwawukume says all the petroleum agreement contracts signed between government of Ghana and petroleum companies for exploration and other activities are illegal. According to him, the spirit and intent of PNDC Laws 64 and 84 is to ensure that every petroleum agreement between the government of Ghana and any petroleum company is a production sharing agreement but stressed that all the existing contracts were signed under concessional agreement instead. He therefore proposed that all the petroleum agreements signed should be declared null and void since they are not inconformity with the PNDC Laws 64 and 84 which are the only existing petroleum laws in the country now for all petroleum exploration and production agreements. Solomon Kwawukume explains that due to the nature of the agreements signed, Ghana has lost so much to the benefit of the petroleum companies currently operating in the country. Meanwhile, Solomon Kwawukume has cautioned Parliament not pass into law the Petroleum Exploration and Production Bill 2013 in its current form because it will further deprive the country of the full benefit of the country’s oil and gas. Cabinet has approved the Petroleum Exploration and Production bill 2013 and it is expected to be laid before parliament for approval into law to regulate the upstream oil and gas industry in Ghana. He implored lawmakers in the country to reject the bill when it is laid before Parliament. The Executive Director of Ghana Institute of Governance and Security, David Agbee also called for the quick adoption of Production Sharing Agreements to enable the country benefit fully from the oil and gas discovered in the country. He said if Ghana was operating under Production Sharing Agreements, the country would have earned over USD 4 billion as at the end of December 2013 instead of the USD 1.8 billion that it has accrued in three years. At the end of March, 2014 Ghana had earned USD 2.089 billion, as opposed to USD 8.448 billion made by partners in exploration.

SEPTEMBER 2014

The Millennium Challenge Corporation signed the largest U.S. Government-funded transaction of President Obama’s Power Africa initiative— designed to double access to power on the African continent—with the Government of Ghana. The Ghana Power Compact will invest up to USD 498.2 million to support the transformation of Ghana’s electricity sector and stimulate private investment. The five-year compact is designed to create a self-sustaining energy sector in Ghana by reforming laws and regulations needed to transform the country’s power sector. The Ghana Power Compact is expected to catalyze more than USD 4 billion in private energy investment and activity from American and global energy firms in the coming years. The compact will support improved management of Ghana’s entire power system, providing a more robust framework for private investment as well as a more competitive process for the procurement of power from independent producers. It will address challenges in distribution, generation and access to energy in Ghana. Ghana will invest USD 37.4 million of its own funds in the initiative making the compact a total investment of up to USD 535.6 million. MCC will make an initial investment of up to USD 308.2 million, including funding to put the Electricity Company of Ghana, the country’s main distribution company, on a sustainable path, help the utility meet current electricity needs and upgrade infrastructure to reduce outages and improve service. A second tranche of up to USD 190 million in funds will be made available if Ghana accomplishes a set of reform targets set forth in the compact. For Power Africa’s first, five-year phase, through 2018, the U.S. Government has committed more than USD 7 billion in financial support and loan guarantees, in addition to the expertise of 12 U.S. Government agencies. With the compacts it is developing with Liberia and Tanzania, MCC ultimately plans to invest about USD 1 billion to support Power Africa.

GHANA BUSINESS & FINANCE

ECONOMY

Still baiting

good news! BY MARTIN-LUTHER C. KING

Ghana’s stable, multi-party democracy demonstrated commitment to market liberalization, in addition to ongoing privatizations in key economic sectors which made it stand out as a key investment destination. But now it is unclear whether the country can maintain that perception going forward, as uncertainty clouds the business climate, making planning for the future a major hurdle for the country’s investment community.

or one, business sentiment has worsened sharply, according to the latest Association of Ghana Industries (AGI) Business Barometer Survey for the second quarter of 2014. From an index of 90.13 in the first quarter, business confidence fell sharply to 22.42 in the second quarter of 2014. The findings are consistent with current developments in the economy, including cedi depreciation, persistent unavailability of power supply and the multiplicity of taxes which all emerged as the top three challenges businesses faced in the second quarter, according to Mr Seth Twum-Akwaboah, the Executive Director of the AGI. “These do not come as a surprise. Measures by the Bank of Ghana to control the cedi depreciation against major trading currencies seemed to have had little impact. Foreign earnings

Of the 417 registered projects, 310 were wholly-owned by foreign enterprises while 107 were joint ventures between Ghanaians and their foreign partners. GIPC said the FDI inflows to the country in terms of the estimated value for the projects registered in 2013 amounted to GHc 8.820 billion . India, with 57 projects, topped the list of countries with the highest number of registered projects in 2013, while USA topped the list of countries with the largest FDI value, amounting to USD 1.213 billion. Meanwhile back in Ghana, in an ever increasing degree, corruption now appears to be fairly systemic and widespread. In addition to perceived high-level bribery and fraud that involves government officials, corruption seems to be pervasive in the civil service and in several facets of Ghanaian society. Indeed in recent months, there have been several high-profile cases of alleged corruption in Ghana. Our analyst in Accra reports that corruption is perceived to be widespread and rising. Over the course of 2013, there have been various high-profile cases of

that would have been repatriated are likely still being kept in offshore accounts. As uncertainty lingered over the entire business climate, planning into the future remained a major hurdle for many captains of industry,” he said. The Business Barometer Indicator is an AGI proprietary tool that measures the level of confidence in the business environment and predicts short-term business trends. Conversely, foreign direct investment (FDI) inflows to the country last year declined marginally by 19.53 percent to USD 3.946.41 billion compared to almost USD 4,904.41 billion recorded in 2012, according to figures from the Ghana Investment Promotion Centre (GIPC). Specifically, 417 projects were registered for implementation in 2013, with a total estimated value of GHc 9.526 billion (USD 4.262 billion), compared to 399 projects registered in 2012 with a total estimated value of USD 5.630 billion, said the centre in its fourth quarter investment report.

GHANA BUSINESS & FINANCE

SEPTEMBER 2014

ECONOMY

corruption in which government officials are alleged to be involved. There have been calls from some pressure groups for the resignation of President John Dramani Mahama due to these high-profile incidents. Our analyst in Accra questioned our local contacts in business and the community, in order to glean the current state of corruption perceptions. An oil boom helped fuel five years of GDP growth above 8 percent making Ghana an emerging market star, a stable democracy whose population of 25 million was moving steadily into middle income status. It is now, however, paying a steep price for not coming through with a new tranche of fiscal reforms. Political consensus is stymied, the public is dismayed by rising costs and the dream of new wealth is on hold. Analysts put the immediate difficulty down to a delay in announcing reforms, saying it makes it harder for the government to meet its 2014 economic targets and has increased the chance it will eventually actually need a bailout from the International Monetary Fund (IMF) and not just policy direction. It has also created a perception

“ The country is currently ranked 64th out of 183 countries with regards to the ease of doing business in the 2013 World Bank’s Doing Business Report ...”

of policy drift at a time of economic trouble rather than decisive action to shore up gains made during the boom years in which the gold and cocoa exporter started pumping oil. Put bluntly, Ghana’s promising economy is now in freefall. Inflation is at 15.3 percent. Other statistics aren’t much better: There’s a budget deficit of over 10 per cent of GDP, the Cedi has depreciated by 40 percent against the dollar in 2014 alone and growth has stalled to just 4.4 percent. Things have gotten so bad for Ghana that the country has turned to the International Monetary Fund for help. In August, President John Dramani Mahama authorised his government to start negotiating with the International Monetary Fund for a bailout which they hope will stabilise the Cedi and restore investor confidence. This was an abrupt about-turn from the president, who has been insisting for months that Ghana didn’t need any help. It is an indication of just how bad things have become on his watch. In 1983, Ghana had similarly accepted IMF and World Bank assistance in the form of the controversial Structural Adjustment Program, which forced participating economies to liberalise their markets with unseemly haste. Still, Ghana remains a favoured country for SMEs taking their first steps to export into Africa. In fact, the range of foreign companies still showing interest in investing is almost unparalleled. cont’d on pg 12

SEPTEMBER 2014

GHANA BUSINESS & FINANCE

ECONOMY

“...despite the 20 percent drop in total FDI value last year, the number of foreign-funded projects in Ghana actually grew by more than 48 percent between 2012 and 2013.” The country’s expanding stock market, competitive labour force, ongoing infrastructure development, export free zones (where goods traded with other countries are exempt from customs duties and laws), immediate access to all markets of the Economic Community of West African States (ECOWAS), quota-free access to US and European Union markets and membership to the World Trade Organization (WTO) ensure its attractiveness to investors. Guarantees against expropriation of private investments provided under law are enshrined in the Ghanaian Constitution which ensures, among others, free transferability of capital, profits and dividends; insurance against non-commercial risks; and double taxation agreements (DTAs), which rationalizes tax obligations of investors. Among others, DTAs have been signed and ratified with France, the United Kingdom and Germany; and, negotiations concluded with Belgium, Italy and Yugoslavia. Ghana is also a signatory to the World Bank’s Multilateral Investment Guarantee Agency (MIGA) Convention. The country is currently ranked 64th out of 183 countries with regards to the ease of doing business in the 2013 World Bank’s Doing Business Report and is ranked 15th among the 50 economies that made the largest strides in making their regulatory environment more favourable to business since 2005. And despite the 20 percent drop in total FDI value last year, the number of foreignfunded projects in Ghana actually grew by more than 48 per cent between 2012 and 2013. Going forward, however, analysts see the government’s current engagement with the IMF as a timely move that will help to trim the country’s bloated civil service, reduce an extensive subsidy program and curtail general overspending by the state; and, hope the latest experience will inure to the maximum benefit of the entire country. But beyond whatever new measures the government decides to adopt, specific structural measures must be operationalized to diversify the economy and reduce fragility in the system.

VOICES FOR AND AGAINST AN

IMF BAILOUT BY OPPONG BAAH

Within a five-year period the Government of Ghana has twice sought the assistance of the International Monetary Fund (IMF) to salvage its economy. In 2009, the Government went to the IMF and secured a USD 600 million three-year aid package. In 2014, moves are now underway for an IMF bailout. The country exports huge amounts of gold, cocoa and oil but is grappling with large current account and budget deficits. It ran a fiscal deficit equal to 10 percent of gross domestic product (GDP) in 2013, which the government promised to cut to 8.5 percent in 2014 but strangely enough, also shifted its deficit forecast to only 8.8 percent in a supplementary budget. Currently, Ghana’s budget deficit is running beyond sustainable limits. The currency (cedi) is depreciating at a faster rate than was expected and there are hikes in food and fuel prices, in utility tariffs, and in the taxes imposed on a number of products and services. Hemmed between the devil and the deep blue sea, the government is turning to the IMF for support in the hopes of turning around the economic fortunes of the country. The road to the Bretton Woods Institution has been tortuous and full of controversies, denials and U-turns. In the first quarter of the year, Dr. Mamudu Bawumiah, a noted economist, predicted that the economic trends in the country pointed to an IMF bailout later in the year. Being a member of the opposition political party - New Patriotic Party (NPP), he was unkindly tagged as a prophet of doom by government appointees and officials. What observers describe as a sudden U-turn decision by the Mahama Administration, has been met with mixed reactions - critics including Dr. Anthony Akoto Osei, former Minister of Finance, have voiced opinions against it while others like Mr. Kwame Pianim of the Presidential Advisory Committee tasked to find solutions to the ailing economy, have hailed it as a needed measure to bring the country back from the brink. While at the US-Africa Leaders Summit in Washington DC, last month, the Ghanaian President explained that the

GHANA BUSINESS & FINANCE

SEPTEMBER 2014

Government took the decision because there was the need for policy credibility and confidence from the international financial institutions to restore economic stability and growth. Further, he said “we are going to discuss with the IMF how we can turn the deficit around quickly and create confidence even in the short term narrative”, adding “we are taking subsidies off of fuel and utilities, streamlining the spiraling public sector wages, we are working to improve revenue collection and efficiency in collecting taxes and also reforming the public financial management system”. To Mr. Pianim, Ghana needs the IMF support to grow the economy: “The decision to go back to the IMF only suggests the country is faced with a structural problem that has not been addressed ”, he says. Mr. Pianim is of the opinion that the bailout is a “stabilizing anchor” that will reposition the country’s economy for growth and macroeconomic stability. He is, however, not happy that the government did not use the 2014 Mid-Year Budget Review to send a strong signal to the Ghanaian public to tighten their belts for economic stabilization and transformation. According to Mr. Pianim, Ghana is facing a major crisis and yet most public pronouncements seem to be in denial of the gravity of it. The Economic Consultant suggests that there be collective national attention to address the challenges that have kept the country punching below its economic weight for decades. No n e t h e l e s s , economists like Dr. Akoto Osei do not share the optimism of the government. They claim the decision is likely to bring intense hardship to Ghanaians.

SEPTEMBER 2014

GHANA BUSINESS & FINANCE

ECONOMY

According to the former Finance Minister, Ghanaians must expect job losses, hikes in utility tariffs and general increments in goods and services. On the bandwagon of Dr. Akoto Osei is Dr. Kofi Konadu Apraku, the former Trade and Industry Minister, who sees the bailout move as an admission of the government’s incompetence in managing the economy and its inability to successfully take the economy back to where it was twenty years ago. Four months ago, the Ghana Trade Union Congress during the May Day celebration cautioned the government to avoid an IMF bailout. The Congress stressed that “times are hard, the prognosis on the economy is not good either, but we must at this point resist the temptation to seek an IMF bailout as we have stated, it is the IMF-sponsored policies that had brought us almost to the brink. No country has developed following the advice of the IMF. Resorting to the IMF for financial support was a mistake we made in the past. We must take responsibility of this mistake and find a solution to our problem.” There is a third group of economic gurus who though in principle support the idea of the government looking within for solutions to deal with the economic woes bedeviling the nation are not enthused with the dividends so far achieved with the homegrown policies. They contend that with the freefall of the cedi against other international currencies, the uncontrollable double digit inflationary trend, and unabated utility and pump price increases, widening public debt – both domestic and foreign, in addition to the huge arrears of unpaid statutory allocations, something drastic needs to be done to put the economy on a sound footing. Dr. John Kwakye, a Senior Economist at the Institute of Economic Affairs, points out that “unless we are willing to and able to implement a homegrown fiscal discipline regime, the alternative will be to have one imposed from outside, including from the IMF , so as to unlock the much-needed donor support for the economy. Government is struggling to reduce the huge budget deficit and inflation has skyrocketed to 15%. International rating agencies have predicted further declines of Ghana’s economy .” To many Ghanaians, especially, those in the 40-plus year group the IMF is an institution synonymous with an unbearable life. It always brings in its trail job loses, high rent, high utility costs, drops in healthcare patronage, school dropouts, amongst other things, through its policies promoting the removal of subsidies, and analyses of “ability to pay”. To the old generation it is an institution that brought down two governments - that of Dr. Busia and Dr. Limann - through its harsh conditionalities. Most people in Ghana do not know that the IMF has also been active in helping rebuild the economies of Eastern European countries, after the spilt from the Soviet Union, or that it has one lent funds to countries like France, Germany and China, to help the out of economic difficulties. In the 1980s, when the Provisional National Defence Council (PNDC) under John Jerry Rawlings was in the process of shedding its scales from autocracy to democracy, the Bretton Woods Institutions came about with high sounding words all beginning with ‘R’ like, ‘Retrenchment’, ‘Redundancy’, ‘Restructuring’, which all pointed to one end – joblessness for many citizens. The IMF is therefore an institution many in the country, especially the older population, love to hate. For the younger population, who are yet to taste the financial medicines prescribed by the IMF, the jury may yet be out. If the IMF’s prescriptions could get Ghana out of the woods, its tattered reputation in Ghana may yet be restored.

BANKING & FINANCE

The micro-finance bubble:

bursting at its seams? BY ANTHONY SEDZRO

The financial sector in Ghana is sound and profitable, with banks posting healthy profit margins annually. Total assets of the banking sector (specifically universal banking) grew by 44.4 percent year-on-year to GHc 42.9 billion at the end of May 2014, compared with GHc 32.1 billion in 2013, according to the Bank of Ghana.

hese figures are for only 33 percent of the population who operate bank accounts with Ghana’s 26 universal banks, according to the World Bank. Larger portions of the population do not have bank accounts all. This is where Micro-Finance Institutions (MFIs) come in. MFIs loan out smaller amounts to poorer sectors of the economy that do not save with traditional banks. They offer financial services to this critical mass of people

and help deepen financial inclusion. Raymond Amanfo, Director of other Financial Institutions Supervision Department of the Bank Of Ghana (BOG) says a total of 441 MFIs have been licensed by the Central Bank with the breakdown as follows: 390 micro-finance companies, 50 money lending companies and seven financial Non-Governmental Organisations (NGOs). According to him, at the end of May this year, the total assets of these

GHANA BUSINESS & FINANCE

institutions stood at GHc 688.45 million, representing about 1.0 percent of the total assets of the banking industry. Loans and advances granted by the micro-finance institutions amounted to GHc 343.53 million during the same period. “Total deposits mobilized during the period on the other hand totaled GHc 344.75 million with borrowings amounting to GHc 186.23 million,” he adds. However these figures for the MFI sector could be misleading. This

SEPTEMBER 2014

“...poor regulatory framework means many are operating illegally, leading to disastrous consequences.”

is the data from MFIs that have been officially licensed. There are thousands more scattered around the country which are unlicensed and unregulated as such their dealings escape official reporting statistics.

The Problem

MFIs are ranked in a tier system based on their capital base. New, higher minimum capital requirements ranging between GHc 100,000 to GHc 500,000 were introduced for them last year. Many cannot meet the requirements but start anyway. This is because the BOG appears understaffed to supervise all of them. Even of the 26 universal banks, many have complained

SEPTEMBER 2014

properly equipped to supervise and monitor activities of MFIs nationwide. It will be proper for the BOG to set up a separate agency to take over the regulation and watchdog role of the MFIs. This will be similar to the rural banks where the ARB Apex bank supervises and regulates them. Rural banks file their returns to the apex bank hence the latter is able to rank them and know which ones are not performing and deserve attention. This point was conceded by Franklyn Benye, the Head of Banking Supervision of the BOG in December 2013 when he said “…apex bank is not a regular institution, their role is more administrative…we may need to do that for the micro-finance [sector] but now it’s too early; we need to ensure we’ve put in place a number of wellfunctioning MFIs to be able to stand on their own and if they then want to have their own umbrella body to hold them together that can be done”. Additionally, the new apex body needs to have a database with the list of all licensed MFIs. This database should be accessible to the public who can access to check status of MFIs before doing business with them. With the passage of the Credit Reporting Act, 2007 Ghana now has 3 Credit Bureaus which gather data on borrowers and help banks to have information on customers to ensure that only credit-worthy customers access loans. It should be made mandatory for all registered MFIs to use their services for easy tracking of borrowers to reduce loan default rates. The Central Bank must regularly organise financial literacy programmes to educate and inform the public on micro-finance activities as well as the MFIs themselves on best practices in banking. The Central Bank must close down and prosecute MFIs which are unlicensed and defraud unsuspecting customers. Custodial sentences for their staff will deter future law breakers. MFIs are playing a critical role to extend financial services to the poor and unbanked. However, poor regulatory framework means many are operating illegally, leading to disastrous consequences. The financial sector thrives on trust and the BOG must establish a strong agency to regulate the sector to make financial inclusion more meaningful.

GHANA BUSINESS & FINANCE

BANKING & FINANCE

that some of the banks render poor services but the BOG cannot check and sanction them. Thus monitoring the 441 licensed MFIs in addition to the thousands unlicensed ones appears to be a near impossibility for the BOG. Some are licensed to lend money only while others are allowed to both take deposits and lend. However they spring up in different parts of the country without the requisite license and take deposits, lend and undertake activities as though they are legitimate. The loans they give are in smaller amounts and they have agents who visit traders at their workplaces to take deposits. The net effect is that many challenges abound in the sector: liquidity crises, inexperienced and incompetent staff, high default rates, inability to prosecute defaulters because their operations are illegal, unrealistic high interest rate offers to attract customers, using depositor funds for other uses, too many branches scattered across the country without BOG approval and so on. Many have bolted with depositors funds as a result. Earlier this year there was a run on two of them. The DG Capital Micro-finance in Osu was besieged by customers who could not withdraw their money because the firm was cashstrapped. It took the intervention of the BOG and the police to solve the issue. Ezi Savings and Loans saw its branches in New Town and other part of the capital face a siege by customers who could not withdraw their funds. In September last year, Royal Winners Micro-finance’, an MFI in the Western Regional capital collapsed. The managers of the company bolted with customers’ money without notice. The company shockingly had as much as 23 branches spread across Western, Central and Ashanti regions. This is in addition to ROGAI Micro-finance and GHAMRO, both of which folded up in the Western Region as well. In 2012, there was a circular from the regulator that named 4 MFIs and warned the public not to do transactions with them as they were not licensed. This month, the Central Bank gave a directive that no MFI will be allowed to change their business names. Some who had defrauded customers sought to change their names to evade notice the public. The BOG just like many state institutions is understaffed and not

ENERGY

Energy deficit

defies solutions but innovation may triumph (I) BY AYUUREYISIYA KAPINI ATAFORI

Ghana’s energy problems defy orthodox solutions and remain a nightmare to government as well as industrial, commercial and domestic users of electricity and petroleum products. Industrialization has been one of the key economic pursuits of successive governments, but has remained elusive partly because of inadequate supply of power. The power sub-sector holds the key to the country’s industrialization.

ith purposeful, proactive, innovative and effective implementation of the country’s energy policies, the insufficient production and supply of power to oil the wheels of industry could be a thing of the past. But one author contends: “Planning without adequate provision for financing the plan implementation is a major constraint in power sector development in Ghana and until this is addressed we may not be able to realize the dream of making power crisis a thing of the past.” The role of innovation in ensuring energy security is not in doubt. “There is a need for innovative strategies and bold action to ensure future energy security,” Mawunyo Dzobo of the Energy Commission, states in an elaborate presentation in July this year at a forum for editors held in Peduase, Eastern Region, attended by this writer. Titled 16

‘The Quest for Sustainable Energy Security for Ghana - Past Experience, Present Situation and Future Outlook,’ the presentation defines energy security to include the continuous availability of, and accessibility to, acceptable forms of energy in sufficient quantities and at affordable prices; adding that “consequently, energy insecurity and shortages handicap productive activities and undermine economic growth and consumer welfare.” According to Mr. Dzobo, there is a strong correlation between energy consumption and socio-economic development. The inevitable increasing energy demand as a result of economic and population growths, scarce and depleting energy resources from fossil fuels (e.g. R/P ratio of crude oil is 52.9 years, natural gas is 55.7 years, coal is 109.0 years); and various renewable energy sources such as mini-hydro, solar and wind are being considered by the government. The implementation

GHANA BUSINESS & FINANCE

of the planned projects is most urgent. He observes that the challenges of energy security are the unavailability of investment capital for electricity infrastructure; high cost of foreign energy resources for electricity generation at affordable prices; fear of producing nuclear energy for electricity generation; shortage of technically competent workforce to man installations; and inaccessibility and unaffordability of state-of-the art technology. He concludes that the electricity supply situation in the past had not been secured due to the impacts of El Nino on hydropower generation, increasing Light Crude Oil (LCO) prices and unreliable and inadequate gas supplies from Nigeria. A technical committee set up by the government in 2013 says the country’s power challenges will abate when USD 4 billion is invested in the sector. In its interim report, the committee notes that there is a huge gap between SEPTEMBER 2014

“Intriguingly, the country imports crude at the world market price and sells its own oil at that same price.” the amount of power produced and what is needed for socioeconomic activities. Shortages in the supply of power cause frequent interruptions and load rationing. Current total power generated is about 1,962 MW, whereas total installed generation is 2,814 MW. The government’s policy goal is to increase power generation capacity to 5,000 megawatts (MW) by 2015. There is now inadequate access to electricity – 65 percent national access. At least 70 percent national access is expected by 2015; while the government aims to achieve universal access by 2020. When the country fully exploits new sources of energy like nuclear, coal, wind and biomass profitably and cost-effectively, and adds them to the existing dominant hydro, thermal and new solar mix, consumers will heave a sigh of relief. “Hydro sources in Ghana are now highly limited,” Dr. Mohammed Amin Adam, Executive Director of African Centre for Energy Policy, says. Ghana’s three hydro-electric dams, the Akosombo and Kpong Generating stations owned by the state and run by the Volta River Authority (VRA), and the ongoing state-owned Bui project run by the Bui Power Authority have a total installed capacity of 1,580 MW. With a total available capacity of SEPTEMBER 2014

of living then shoots above the roof and economic hardship is experienced by the people Dr. Amin Adam says gas is a necessity and as such the government should take steps to ensure its exploitation for the benefit of the country. The country’s total installed capacity of power from gas is about 360 MW. Imported natural gas costs about USD 10.3/GJ. The VRA has two combined LCO and gas plants, and operates one combined plant with Takoradi International Company (TICO), an independent power producer (IPP). Together with VRA’s four gas-onlypowered plants, they produce a total available capacity of 732 MW. The country gets natural gas from the West Africa Gas Pipeline (WAGP), but the supply of the gas has been erratic since it started operating in 2007. The WAGP and the country have a contract for the former to supply 120 million standard cubic feet per day (mmscfd) of gas, but it has since been providing an average of 70 mmscfd which is lower than the quantity required. The country’s dependency on gas from Nigeria through the WAGP has been problematic because of a weak legal framework with regards to deliveries. At present, the WAGP operates below capacity. Experts believe gas deliveries through the WAGP cannot be sustained in the long term. Yet the country has about 800 billion cubic feet of proven natural gas reserves, though the country does not produce dry natural gas at present. Ghana has 1.2 trillion cubic feet of gas in the Jubilee field, part of which is currently being flared and re-injected. Incorporated in July 2011, Ghana National Gas Company (Ghana Gas) is developing the Western Corridor Gas Infrastructure Development Project which is made up of the offshore and onshore pipelines, gas processing plant, the national gas liquids export system and the office complex. The infrastructure of the processing plant was 99.78 percent complete as at early August, according to Dr. Ben Asante, Director of projects at Ghana Gas. It is expected to supply gas in this month. “The future of our electricity is going to be thermal generation. Those thermal plants need a lot of gas,” states Mr. Emmanuel Kofi Buah, Energy Minister, last month. “120 million cubic feet of gas is going to give us 400 MW of power.” Dr. Asante says some of the products to be produced from the Ghana Gas project are lean gas, liquefied petroleum gas (LPGs), pentanes and condensates which will meet 76 percent of the country’s gas and energy needs.

GHANA BUSINESS & FINANCE

ENERGY

1,130 MW, hydropower is a cheaper source of electricity but its dependence on water inflows into the reservoirs makes it unreliable as droughts reduced generation capacity in the past. The outlook for hydro is prospects-filled and investors should be interested in partnering government in constructing mini-hydro dams. Recent forecasts, however, point to a big El Nino in 2015. Luckily, El Nino is predictable and could be prepared for. Hydropower generation could also boost agriculture when irrigation is made an integral component of the new projects. That may attract some investors to hydro to create jobs in both the energy and agriculture sectors. Thermal generation of electricity is based on LCO, natural gas and diesel, which are all now being imported. The country’s total installed capacity for thermal is about 1,389.5 MW. VRA operates and co-runs about seven thermal plants with a total installed capacity of 1,221.5 MW and available capacity of 832 MW. The problem with thermal generation is the sky-rocketing price of LCO which increased from USD 28.4 barrels per day (b/d) in 2000 to USD 108.7 b/d in 2013; further ballooning to USD 103 b/d in late August. For the future, investments in thermal will be gainful when an attractive tariff regime is put in place as energy economists insist that the present tariffs are uneconomic. Ghana’s Jubilee field produces about 120,000 b/d of crude oil. Intriguingly, the country imports crude at the world market price and sells its own oil at that same price. According to a document by the Accra-based Ghana Institute of Governance and Security, from 2011 to March 2014, the country earned USD 2,039,530,547 as the minimum government take from the Jubilee fields, representing 19.82 percent. But the crude is not refined locally as the state-owned Tema Oil Refinery (TOR) is debt-ridden and not liquid enough to buy crude and process. Why can’t the government arrange with the other Jubilee partners to supply the Jubilee ‘Sweet Light’ crude to TOR so that it can refine and become viable, reliable and profitable? Unfortunately, policy change has now created about 21 Bulk Oil Distributing Companies (BDCs), with only a handful capable of storing oil, which have aggravated TOR’s plight and made the Bulk Oil Storage and Transportation (BOST) Company almost redundant as BOST could not release strategic stocks when in June the government asked it to do so during the fuel shortage. The economy is such that whenever the price of petroleum products rises, it leads to an increase in transport fares, causing the prices of goods and services to shoot up. The cost

Ghana Business and Finance in collaboration with the Ministry of Communications presents a special report on

ICT in Ghana

supported by

Ghana Investment Fund for Electronic Communications

ICT IN GHANA

Foreword from the

Minister of Communications

ooking back at the rapid transformation of Ghana’s communications sector today, we can only pay glowing tribute to the strength of conviction that motivated the telecommunications reforms and liberalisation embarked on in the mid-nineteen nineties. This was essentially to increase citizens’ access to telecom services, the attraction of modern technology and the provision of consumer choices and convenience. If it is considered that in the year 1997 Ghana possessed 105,000 fixed lines and 7,500 analogue cellular subscribers, and that in June 2014, it has 29,220,602 mobile subscriptions, and 13,962,318 data subscriptions, then the courage for undertaking the reforms at the time, when the defence for state telecommunications monopoly was loudest in the developing world, should not be underestimated. As telecommunications is a major driver of economic growth, this improvement has also reflected an increase in the services sector’s share of Ghana’s GDP from 50.0% in 2012 to 50.6% in 2013 out of which Information and Communication contributed 24.7%.

It is evident that this performance is a positive response to the Government’s continuing support for public-private partnership investment in massive broadband infrastructure roll-out and the success of bilateral support in the construction of major optic fibre and LTE infrastructure. This is providing substantial bandwidth for ubiquitous deployment and application of ICT services in governance; education; health; business and finance; agriculture; and research and development. The pace of the roll-out is impressive. For instance, in May 2013 the construction of the 780-kilometre Eastern Corridor Optic Fibre network commenced in earnest and by the end of August 2014, 634.26 km of civil works has been completed and 312.35 km of optic fibre has been installed. This network will provide connectivity to over 200 communities along the route and also complement the over 3,000 kilometers of the National Communications Backbone optic fibre that connects the north to the south on the western tangent all the way to the northernmost frontier with Burkina Faso. Additionally, Ghana is supporting the terrestrial optic fibre infrastructure with five submarine cable systems that link the country with Europe and the rest of the world. They contribute a total of 12.3 terabits bandwidth capacity and a healthy competition for the industry which is driving down bandwidth costs to the benefit of emerging BPO industry and the employment of our people. Indeed, government is proud of the investment in broadband because this will provide for open government, improved education, healthcare, social networking, smart city applications,

GHANA BUSINESS & FINANCE

improved policing, disaster/accident rescue, environment and climate change monitoring, etc. In the coming years, we expect to see a transformation to the knowledgebased society with new solutions for e-Immigration, e-Cabinet, e-Parliament, e-Justice, and an e-Services platform and e-payment arrangement. The collaboration with the internet communities and the provision of additional Internet Exchange Points is gradually expanding internet usage. The collaboration is also supporting the cyber-security management and the establishment of a Computer Emergency Response Team framework with the assistance of the International Telecommunication Union (ITU). Let me therefore give the assurance of Ghana’s continuing efforts to make the country the hub of ICT investments and gateway to Africa. Ghana will always be a welcome destination and the opportunities provided should not be missed.

Dr. Edward Omane Boamah Minister of Communications and Information

SEPTEMBER 2014

ICT IN GHANA

Ghana’s ICT sector: An overview

he ICT industry comprises internet service providers, telecommunication companies, software manufacturers, ICT education providers, etc. The ICT industry is regulated by the Ministry of Communications as well as the National Communications Authority (NCA). ICT infrastructural development in Ghana is progressing as compared to other low-income countries globally and above the 1.1% average for subSaharan Africa. Over the years, several initiatives have been made by the Government of Ghana and other agencies to develop the ICT infrastructure so as to bridge the digital divide between Ghana and the developed world. In 2012, information and communication contributed 1.8% of GDP. In order to facilitate ICT development, the government has implemented a number of initiatives, such as the development of a national fibre optic network (VOLTACOM) by the nation’s electricity provider, the Volta River Authority (VRA). There have also been massive investments in ICT infrastructure from existing internet service providers (ISPs) and telecommunication companies. The Kofi Annan Centre of Excellence in ICT, which is a joint Ghana/India project, was commissioned with the responsibility of producing the human capacity needed for the emerging ICT industry in Ghana and the African sub-region. The internet services provided by mobile phone companies provide a leading point of access to ICT in Ghana. Ghana’s cellular SIM subscriber numbers are inching close to the country’s 25.1 million population. The latest data released by the NCA shows that the total mobile voice subscriber base stood at 27.2 million as at July 2013, while mobile data subscription stood at 10.2 million. (Source: National Communications Authority website, Ghana).

On-going ICT projects in Ghana e-Ghana

Ghana is currently executing the e-Ghana project, which ideally seeks to assist the government to generate growth and employment by leveraging ICT and public-private partnerships.

ICT park

Construction is underway on a 20 hectare ICT park in Tema. The project is sponsored by the World Bank’s International Development Association with the aim of building a technology village which will serve as the ICT hub of the country.

Hope City project

Ghana also launched the Hope City project in March 2013. The project will feature Africa’s tallest building and is expected to employ more than 50 000 people. More than 25 000 inhabitants are expected to eventually occupy Hope City. It will include an IT university, a residential area, a hospital, as well as social and sporting amenities. The ICT sector is government driven on the basis that it is the key prerequisite for luring new investors to Ghana. Ghana is committed to improving its ICT infrastructure; hence any proactive ICT initiative is likely to receive enormous government support.

ICT Park

Source: PricewaterhouseCoopers (PwC) Business and Investing in Ghana - 2014 Report SEPTEMBER 2014

GHANA BUSINESS & FINANCE

ICT IN GHANA

Professor Quaynor Joins Elite Group of internet Pioneers, innovators and global connectors Professor Nii Quaynor, chairman of the National Information Technology Agency’s board of trustees of has been inducted into the 2013 Internet Hall of Fame, thereby joining the rank of notable individuals who have made a significant contribution to the advancement of global internet. Professor Quaynor was recognized for his role in pioneering internet development and its expansion throughout Africa. The Pioneer category recognizes and celebrates individuals who were instrumental in the early design and development of the internet. Prof. Quaynor has served on several boards including ICANN, the UN ICT task force as well as the IGF Advisory Group at UN. He also serves on the boards of GhiPPS and the National Identification Agency (NIA). Prof. Quaynor is also a patron of the Internet Society Ghana Chapter and was the recipient of the Internet Society’s prestigious Jonathan B. Postel Service Award for pioneering work to advance the internet in Africa in December 2007.

Ghana celebrates International Girls in ICT Day, 2014

Koforidua in the Eastern Region was this year, the host of Ghana’s celebration of Girls in ICT Day, which comes off every fourth Thursday in the month of April. Girls-in-ICT Day is an initiative by the International Telecommunication Union (ITU) to raise awareness and promote technology careers to a new generation of girls. In Ghana, both Governmental and Non Governmental Organisations took part in this global movement to ensure women are prepared to become the technology creators of tomorrow. One hundred and eighty girls selected from public schools in the eastern region , showed their skills and expertise to test their capacities and capabilities in ICT in a competition

dubbed ‘Girls-in-ICT Marathon, 2014’. The girls were grouped in tens from the different District Assemblies and public schools and tasked to undertake various tasks. Delivering the keynote address, Dr. Edward K. Omane Boamah, Minister for Communications indicated that the importance of the Girls - in - ICT Day celebration cannot be underrated. It said that it is celebrated around the world and that over 1,500 events in 121 countries, empowering over 70,000 girls and young women have taken place and much more is expected even after the actual day itself. The Hon Minister indicated that this year’s celebrations, the third in the series, will include a series of activities

GHANA BUSINESS & FINANCE

involving hands-on ICT workshops to encourage the study of technologyrelated disciplines have been held at Community Information Centres (CICs) in the Eastern Region. He added that, three years ago, the celebration involved a panel discussion by accomplished female ICT practitioners who shared inspirational knowledge and experience to girls and young ladies from tertiary institutions. The Minister assured the girls that the future of the ICT sector is exciting and that it was open to creativity, innovation and entirely new ways of working, interacting and learning that should appeal to both males and females.

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President Mahama inaugurates Tamale NCA office President John Dramani Mahama inaugurated the National Communication Authority’s Northern Regional office in Tamale. The construction of the office forms part of efforts to bring the activities of the NCA closer to telecommunications stakeholders and consumers, within the Northern sector of the country. The President assured the nation of the full commitment of government to the development of an accelerated economy of the country through effective ICT infrastructure provision and usage. President Mahama also appealed to individuals and institutions for whose sake the new zonal office has been commissioned in Tamale to collectively claim ownership of the facility in order to realize the full potentials of the new office. “As you are aware, the transformation of our telecom sector started in the 90s, specifically in 1997 after we had formulated the accelerated framework for expansion of telecoms in Ghana,” he recalled. He said a key part of the accelerated expansion of telecoms was the establishment of a regulator which began as a fledgling institution. “There were many challenges but I can say all of us in the ministry and NCA persevered and today we can look back with pride and see how far we have come in terms of telecom expansion and ICT in Ghana,” the president stressed. The president added that Ghana has been identified as one of the emerging countries (behind Brazil, China, India South Africa), where ICT is fast becoming the backbone for development. The NCA building in the Tamale signifies the importance of decentralization of regulatory services. It facilitates the provision of services to the doorsteps of the people. It also helps the citizenry to interact and consult with officers of NCA on face to face basis outside Accra.

SEPTEMBER 2014

ICT IN GHANA

Minister cut’s sod for the contruction of a BPO center

The Minister of Communications, Dr. Edward Omane Boamah, cut the sod to commence the construction of an USD 8.84 million Business Process Outsourcing (BPO) centre in Accra. The project, which is expected to be completed in September this year, will provide grade ‘A’ facility for local and foreign investors in the Business Process Outsourcing area of the Information Technology-Enabled Services industry in Ghana. The project involves the rehabilitation of old Public Works Department (PWD) warehouses at the Kwame Nkrumah Circle in Accra. Speaking at the ceremony, the Minister said that the project was being executed under the E-Ghana project, with the World Bank providing a USD 5 million loan facility while the Rockefeller Foundation is supporting the project with a grant of USD 3.84 million. Dr. Omane Boamah noted that many developed and developing countries such as China, Malaysia and India have been able to sustain their economic growth by using the BPO sector as an avenue for job and wealth creation and that Ghana should not be an exception. “With mobile phone subscriptions escalating and the emergence of smart phones, it is important we take advantage of the digital economy,” Dr. Boamah said. The Minister intimated that government was redirecting its resources towards areas that would identify key needs of the people and also provide decent jobs that would provide moderate, quality and standard environment for the young men and women who would be working in the centre. On completion, the BPO Center is expected to create space for almost 10,000 seater BPO jobs for the youth to support the economic growth of Ghana and the Better Ghana Agenda of the government. He said such investment in the digital economy would obviously improve the country’s Gross Domestic Product (GDP). Dr. Boamah also commended the World Bank and the Rockefeller Foundation for their support in ensuring a smooth take-off of the BPO center. Ghana has been ranked by A.T. Kearney Global Services Location Index as one of the most favourable and preferred destinations for BPO globally but the absence of such grade “A” plug-and-play real estate infrastructure is what is needed to see the realization of more investments in the country.

GHANA BUSINESS & FINANCE

ICT IN GHANA

Change Agents

5 Ghanaian tech startups that will define the future Some believe that the next Google could come out of Africa. In Ghana, its young entrepreneurs are certainly trying to make sure of that. From web based applications that teach local languages to foreigners to iOS and Android ones that match taxis with customers, the Ghanaian startup scene is a febrile movement that has attracted its brightest and best and is yielding some very interesting results. While many more are in development stages, some have received global attention and are feted not only for what they are, but what they could become. Five of them, we believe, could potentially change the way we interact with service providers, each other and even, how we spend our leisure.

Dropifi is a programme that seeks to clear out the era of long and scary website “contact us” forms that deny businesses of valuable feedback and leads, but will still deliver business critical insights and a spamfree customer engagement. Using the Dropifi contact widget, companies filter out spam through proprietary anti-spam technology, see incoming message trending data in relation to industry metrics, the demographic and social media profiles of the sender, analyze the real emotions behind the messages and easily integrate with their existing CRMs, e-commerce and blogging platforms. “With this tool, companies generate more business leads, make better business decisions, offer a more personalized and better customer service experience, save time, increase productivity and boost their ROI,” comments David Osei, co-founder and Chief Executive Officer of Dropifi. Together with Kamil Nabong and Effah Mensah, Mr Osei was trained at the Meltwater Entrepreneurial School of Technology, where after six months of the normally two-year course, they were allowed to move the United States of America to further develop the idea. Dropifi was named the first African startup to join the prestigious 500 Startups Accelerator Programme, early-stage seed fund and incubator program located in Mountain View, Carlifornia. In late 2012, Dropifi launched on Wordpress and Shopify and there have since been over 10,000 downloads on Wordpress and over 900 Shopify stores are using the Dropifi widget to collect and analyze their incoming messages and leads.

mPedigree Goldkeys

Much storied and globally decorated mPedigree Goldkeys is one of not just Ghana, but Africa’s leading technology ventures. Operating off mobile technology, mPedigree allows customers to verify the genuineness of purchased drugs, thus dealing a major blow against the global counterfeit trade, which disproportionately affects Africa and the third world. Led by Bright Simons, mPedigree’s dedicated and passionate team have quietly and steadily grown the company, with the

GHANA BUSINESS & FINANCE

SEPTEMBER 2014

ICT IN GHANA

Leti Games

Leti is only the second full-time game studio in subSaharan Africa. (excluding South Africa, which has a limited but significant history of game development). The two founders of Leti are thus not just the most promising company in the West African game industry; they are the West African game industry. Eyram Tawiah and Wesley Kirinya started Leti in Accra in 2009 with the aid of an investment from the Meltwater Foundation, the nonprofit arm of the Norweigan software company. Leti’s first game, iWarrior, in the style of Space Invaders, was released for the iPhone in the same year. Developers from across the world have made games in African settings with mixed results. Leti says it is here to restore the narrative to its owners. Mr Tawia thinks that games with African settings made by Africans are the best way to cultivate a sense of cultural authenticity. “We believe there is a global market for Leti Games,” he says. “Our focus is to make games from Africa for the world, not just games for Africa. However, we want to create the gaming industry in Africa before diving into global competition.” It’s next game is entitled Ananse: The Origin and will be familiar to an older generation raised on stories about the famous spider/trickster’s antics while introducing the wily creature to new fans. Leti runs an internship program for high school and college students that teaches the basics of game making: animation, modeling, story writing, programming, and the basics of working in game engines. Leti, which has a staff of ten, has trained 25 interns since 2011.

Retail Tower

Online merchants face a complex sales environment. Increasingly, shoppers are using comparison-shopping engines and social recommendation sites to find products and compare prices. To remain competitive, merchants need to keep up with these trends. However, most small and medium size merchants do not have the resources or expertise to compete effectively. Enter RetailTower, a Ghanaian startup that offers plug-and-play solutions to meet the needs of this growing merchant base. Rinkart Osei-Asibey, Samuel Tuffour, Isaac Nii Noi Nortey and Blaise Bayuo are behind the startup, which has created an e-commerce marketing software that helps small and medium size online merchants promote their products and drive traffic through leading comparison shopping engines, seamlessly integrating with ecommerce platforms and comparison shopping engines. This integration reduces the time required for the implementation of an online marketing campaign. Retail merchants can also create Facebook stores on their Facebook fan-page using RetailTower.Retail Tower is currently running a “freemium” business model; with its flagship products free for all merchants. They are developing premium add-ons / features which will be useful to small and medium merchants. They are also implementing affiliate revenues from their partner shopping engines. “We want to build the leading go-to platform for webbased channel marketing solution for small-to-medium online retailers. Our mission is to help online-merchants become competitive and increase sales through shopping comparison sites and online marketplaces,” Blaise Bayuo, the CEO says. Since launch, Retail Tower have signed more than five thousand merchants globally, with a growth rate of some 20 percent month-on-month. It has also cemented partnerships with leading ecommerce platforms Shopify, Magento and osCommerce and is a solution provider for Amazon product Ads, Become.com and Sortprice.com.

technology now operational in thirty-five countries around the globe. Most recently, mPedigree has, in conjunction with the Pharmaceutical Society of Ghana, launched a “Prevent!” initiative, designed to boost the use of the technology and reduce the prevalence of fake drugs on local counters. An activist and campaigner, Mr Simons has designed his startup as a social enterprise that is geared to a communal good but still commercially sustainable. He says the product is completely innovative, “not only because it is completely original – nothing like it had been achieved before – but because the very design breaks with standard software-as-a-service platforms. It blends the consumer and the enterprise domains of the problem-solving process, and offers such a seamless bridge across web and mobile interfaces, that companies across the spectrum, from complex multinationals to SMEs, and consumers at all socio-economic levels, can all benefit uniformly. Very few systems can boast of this achievement.”

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Saya Mobile

While whatsapp is the dominant form of messaging on smartphones, customers who use feature phone still have to use simple, paid for text messaging. That is, unless they have sayachat, the messaging app developed out of Ghana that has set itself the mission of becoming the “whatsapp of feature phones”. Saya is doing this with a product that is based on Java and combines some of the features seen in smartphone apps like Whatsapp, RIM’s BBM, and Facebook, and then some - social network integration, location-based chat, Facebook chat and group chat across different feature phone platforms. And to serve the growing number of smartphone users, Saya will be launching iOS and Android apps, as well. In regions where money is tight for users, Saya is a great boon for users. The service uses so little data that the price works out to about USD 0.01 per month, which is the average cost of a single traditional SMS sent. In a market where users buy phone credits by prepay to use flexibly across voice, data, and text services, this spells a major bargain. This explains its popularity in Africa and Asia. Cocreators of the application, Robert Lamptey and Badu Boahen say that soon after trial, users reached 400,000 with a further 8.7 million invitations sent. At this point, further promotion was held off, due to lack of funds to scale up the service to serve such numbers. The startup has however been taken over in an acqui-hire by Kirusa, a voice messaging and social media value added services company, raising the prospect of it going global and making an impact beyond its founders dreams.

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Transforming Ghana through ICT In a broadband report released in October 2013, the International Telecommunications Unit (ITU) ranked Ghana as 49th highest broadband user globally making Ghana the best mobile broadband user in Africa with a penetration rate of 33%.

hanaâ&#x20AC;&#x2122;s motivation towards achieving this feat has been driven largely by a determination to use ICT as a driver of economic empowerment as enshrined in the ICT4AD policy, a policy document adopted by the Ministry of Communications in 2003 as the guiding policy to develop Information and Communications Technology (ICT) in Ghana. In July 2006, the World Bank approved a loan of $40 million for the Government of Ghana through the Ministry of Communications to assist the Government to generate growth and employment by leveraging ICT and Public-Private Partnerships (PPP). This led to the birth of the e-Ghana project ostensibly to bring into reality the objectives of the ICT4AD policy. The e-Ghana project has four main components namely: 1. Creating an enabling environment to attain accelerated development through ICT 2. Developing the Information Technology Enabled Services (ITES) industry by developing human capacity 3. Contributing to improved efficiency and transparency in government functions through improved communications and e-government applications. 4. Establishing and using Ghana Integrated Financial Management Information Systems (GIFMIS)-based Public Financial Management functionality at governmental treasuries to improve macro-fiscal discipline and management, Ministries, Departments and Agencies (MDAs) and sectoral financial management. To manage the 3rd component of the e-Ghana project, the National Information Technology Agency (NITA) was established as a subsidiary of the Ministry of Communications by an act of parliament, the NITA ACT 771 and additionally tasked with regulating and ensuring the provision of quality ICT, and promoting standards of efficiency in ICT. The NITA is authorised by Government to deploy value added ICTs in all Government

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institutions to enable more efficient, cost-effective, and participatory Government, facilitate more convenient Government services, allow greater public access to Government information anywhere at any time and to make Government more accountable to citizens. Employing electronic governance in the business of government acts as a catalyst to transform its administrations by replacing traditional ways of working with new and more efficient and effective processes, structures and lines of communication.

The e-Government Network Project

NITA at its inception in 2009 had a primary focus to put in place a government network backbone to enable government MDAs to use ICT efficiently in delivering on government business. Another primary objective was to provide a platform to deliver government services to citizen using e-services. The first phase of the project was financed by the World Bank at a cost of $40 million. Through this facility, a 10 gigabit fibre optic network was put in place in the area where the Ministries are concentrated with multiple 4 gigabit loops to areas where the 10 gigabit ring coverage was not present. A 30 â&#x20AC;&#x201C; Base Station terminal (BTS) WiMAX network with coverage in all the regional capitals and some district centres was also established to enable MDAs to connect to the central government district to increase efficiency in communications. A pilot data centre was established thereby providing a shared services platform for MDAs to host applications in a cloud computing environment. Internet services such as email, web hosting, antivirus AND active directory services for MDAs are now provided from the pilot data centre in addition to other infrastructure, ensuring the integration of ICT into government business processes, to achieve greater efficiency and effective service delivery to citizens. These projects were embarked upon to ensure significant cost reduction to government in the provision and maintenance of ICT infrastructure and services by leveraging economies of scale (shared ICT services), and ensuring accessibility and

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E-Government Network Project Phase II

In order to expand on the current infrastructure developed under phase one of the e-government project, a second phase of the project was launched in 2012 with $150 million in funding from the China Exim Bank. This phase of the project was conceived to ensure that the e-government network infrastructure was upgraded and expanded. The existing WiMAX network has been upgraded to a Long Term Evolution 4G wireless Network and 90 more base stations are being added to the network to improve penetration to over 127 districts across the country. The Accra Metropolitan area network is also being expanded to cover more areas in Accra while primary, secondary and disaster recovery national data centre infrastructure is being constructed in Accra, Kumasi and Tamale respectively to improve data security and government business process continuity. The government has also signed a €51 million contract with Alcatel Lucent with funding from Danida to develop a 738 km Eastern corridor fibre optic cable from Ho to Bawku passing through over 27 districts in economically deprived areas to provide high speed Internet access. Alcatel Lucent is also providing a three year management service contract for the e-government infrastructure. The e-immigration service is being developed to transform immigration in and from Ghana. Visa issuance will be electronic and border control will be more efficient when it is completed. The second phase of the e-government project is also focused on automating government business processes. Correspondence management and document management systems are being deployed to automate government correspondence. Intranets are being developed for all government agencies starting with a pilot of 26 MDAs.

Engaging with Citizens for feed back

In 2012, the NITA started the Ghana Open Data Initiative. The initiative was focused on creating a

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convenience of Government services by leveraging ICTs. Even pilot e-service applications run on this e-government network providing access to online birth and death registration, business registration, police CID search and NCA license renewal services to citizens. An e-payment platform will soon go live for easy online payment for services citizens can access from the e-services platform. To ensure appropriate change management, an e-Leaders and e-Champion training was incorporated into the phase one of the e-Government project. Senior government officials from all three arms of government and technical heads were all trained to champion the use of ICT within government. The first phase of the e-Ghana project also saw the commencement of e-parliament and e-justice for those two arms of government. An e-health strategy was also developed.

community that can use open government data in a way that can achieve government administrative efficiency, economic development through job creation for developers, and transparency and accountability. NITA has created a government open data portal (data.gov.gh) where almost 900 government datasets have been uploaded for free use by the public. Citizens can now analyse government operations and send feedback for national development and accountable governance.

Enhancing Operational Activities of Cabinet

In December 2013, NITA commenced the e-cabinet project which is aimed at introducing automated systems and tools to enhance the activities of the Cabinet Secretariat and the Cabinet proper. The portal was developed to reduce the use of paper documents, facilitate quick information dissemination to cabinet members, facilitate and manage incoming, internal and outgoing correspondences, enable the creation and management of cabinet meetings and committee meetings, and lastly facilitate tracking of cabinet decisions and recommendations. Training sessions on how to use the portal have already begun for Cabinet Ministers and they are being taken through the use of: 1. Portal Content Management (PCM) - To publish announcements and articles, concerning the Presidency. 2. Document Management System (DMS) – To reduce paperwork resulting from cabinet documents and memos. 3. Meeting Management System (MMS) – To manage all cabinet meetings such as meeting invitations and uploading and reviewing meeting minutes. 4. Correspondence Management Systems (CMS) – To send correspondence such as internal memos, incoming and outgoing letters to MDAs etc. 5. MS Lync – To allow for chat/audio/video conferencing on a very secure platform via the unified communications aspect of the portal.

The Future of e-government Network

The e-Ghana project was due to officially end in June 2014 but has been extended to December 2014. A new programme called e-Transform will begin in 2015 to further expand the process of enabling ICT across the country. The e-Transform programme which is a $97 million project will focus on empowering teachers through ICT. One of the focuses of e-Transform is to transform our national ID system into a smart card to make cyber use more responsible. The project will also strengthen citizen feedback on government services through the open data initiative. The overall effect of the e-Transform programme will be to change the way government administrators work and provide services to citizens. NITA is on course to fully automate government services by 2020.

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MAKING ELECTRONIC COMMUNICATION ACCESSIBLE TO GHANAIANS

GIFEC shines in Africa and the world Within the space of twelve months, the Ghana Investment Fund for Electronic Communications (GIFEC) has won two world-acclaimed awards in the electronic communications sector. At the 7th NTA ICT World Communication Awards held in New Delhi, India, in 2013, by the Communication, Multimedia and Infrastructure Association of India (CMAI), with support from the International Telecommunications Union (ITU), the Commonwealth Telecommunication Organization, the Government of India and several other industry associations, GIFEC was acclaimed the Most Outstanding Universal Access Fund, in the world. More recently in Geneva, Switzerland, GIFEC’s Rural Telephony Project won the “Best Project for Information and Communication Infrastructure” Award.

GIFEC has been working in close collaboration with the various telecommunication network providers in the country, viz, MTN, Expresso (Kasapa), Vodafone, Airtel, TiGo, and Glo, who by law provide financial support to GIFEC to undertake its projects. Other sources of funding are the Government of Ghana and the UNDP. GIFEC projects are meant to promote governance and inclusiveness to ensure decentralization, thereby enabling those at the local level to participate in the issues of governance through telecommunication and ICT. The objectives therefore, dovetail into government’s goal of providing innovative IT solutions towards ensuring greater efficiency in e-governance processes. The Fund is managed by a Board of Trustees under the chairmanship of the Minister of Communications. Other members are from the Parliamentary Select Committee on Communications, the National Communications Authority, the Ministry of Communications, and licensed telecommunications service providers. The Administrator of the Fund is also a member of the Board of Trustees.

The GIFEC Universal Access to Electronic Communications Programme The agency’s universal access to electronic communications programme is currently divided into six programmes and several projects. Hon. Kofi Attor, Administrator of GIFEC (middle) receiving the world’s Best Project Award for Information and Communication Infrastrucute from Dr Hammadoun Troure, (Right) Secretary General of the International Telecommunications Union. On the left is Mr Houlin Zhao, Deputy Segretary General of the ITU

No. Programme

Constituents Projects

Cyber Laboratory

• School Connectivity • Community Information Centre (CIC) • Library Connectivity • Post Office Connectivity, • Community Initiated Projects, etc.

Currently, Ghana is showing the way in ICT deveopment. The past three years have seen a stream of African nations including Uganda, Tanzania, Sierra Leone, Liberia and Mali visiting Ghana to learn from GIFEC and share ideas on best practices. Originally known as the Ghana Investment Fund for Telecommunications, the Fund was established by the Government of Ghana as an implementing agency of the Ministry of Communications, to facilitate the spread of ICT in the unserved and underserved areas of Ghana. This is to help promote research and reading culture, to train school children and teachers of such communities in ICT use, and to empower communities by providing access to information which will help increase direct participation in development and decisionmaking processes at local and national levels.

Basic Telephony and Access • Common Telecommunications Facility • Rural Telephony • Rural Payphone, etc.

ICT for Livelihood

• e-Fishing (ICT for sustainable Fishing) • Last Mile Initiative • Disability Employment,

ICT Support to Government Institutions

• Security Agencies • Ghana News Agency • Meteorological Authority • NADMO, etc.

Broadcasting

• Radio • TV, etc.

6. Education and Awareness

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• Public Education on ICT & related issues, etc. • Training for CIC Managers, Metropolitan, Municipal, District Assembly (MMDA) staff, etc. • Criminal Information Systems. (for the Ghana Police Service), School management system (Colleges of Education, NVTI) • Desktop TV, SHS Exams Review Software.

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Since 2009, GIFEC has been working on some of its projects in partnerships. These include the Rural Telephony Project done in collaboration with TiGo and K-Net, Mer Ghana (local private telecommunications operators); the Rural Payphone project in collaboration with K-Net, Rom Consult, MTN, Vodafone and TiGo; the Easy Business Project with Kumasi Institute of Technology & Energy (KITE) and the Community Initiated Project in collaboration with interested communities.

ACCOMPLISHED PROJECTS Community Information Centre The CICs are rural projects responding to the local community requests for connectivity to help break their isolation, move their children and the communities closer to the 21st century, to be competitive with their urban counterparts. A management committee (which includes the District Chief Executive) together with the chief and elders of the community monitor the activities/management closely to help create a professional environment, and ensure that services/activities are of quality and are delivered on time. Currently, 105 out of 183 CICs dotted all over the country are fully furnished and equipped to provide community internet access, low cost ICT training and serve as community-based information resource centres. Basic school children, who patronize the facility, receive free ICT training at the centres.

ensures library vans commute from village to village, taking library books and computers to the unserved and underserved areas, spending at least a day at each destination for users, especially school children, to have access to computers, the Internet and relevant books. Thirty static libraries have so far been equipped with computers and hooked onto the internet. All ten regional mobile libraries have been supported with canopies, collapsible chairs and tables as well as computers and internet connectivity.

Rural Telephony Project The objective of the Rural Telephony Project is to motivate telecommunication operators to extend their services into locations of less commercial viability whereby GIFEC bears the cost of erecting the tower. GIFEC absolves about 70 percent of the telecommunication operatorâ&#x20AC;&#x2122;s cost in providing access to those communities. The project is executed in collaboration with the telecommunication operators with the ultimate aim of providing universal access to telecommunications by rural communities. Thirty such rural telephony sites have been constructed and activated in rural communities nationwide.

School Connectivity Project The School Connectivity Project provides educational institutions with high speed computers, printers, scanners, projectors and servers, and internet access, to enhance ICT access in educational institutions in the unserved and underserved areas. Government is also ensuring that teachers, especially students of the colleges of education, acquire ICT skills to enhance subject delivery in the classroom. A total of four hundred and thirty five educational and training institutions have each been provided a fully furnished and equipped ICT laboratory with accessories, and internet access. Similar projects like the security, library and post office connectivity, are geared towards the spread of ICT, more especially the prison connectivity project, which deals with an area most neglected in the country. GIFEC hopes by the introduction of ICT and internet into the prisons, inmates come out equipped with marketable skills for employment.

ICT Training for Police Officers A Criminal Information System has been developed for the Ghana Police Service and is yet to be commissioned. This will store data on crimes reported to the police and help track the perpetrators of crime.

Library Connectivity Project This aims at networking the public libraries so users can access books online. There is a mobile library component, which

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Common Telecommunications Facility Project These are telephone mast/towers which are constructed at underserved and unserved communities for the provision of telecommunications services. The sites are available for colocation by telecommunications companies and other interested parties. Currently, forty-two Common Telecommunication Facilities/Masts have been completed. Twenty five more are under construction.

Post Office Connectivity Government has committed to ensuring that an appropriate policy framework capable of engendering a strong and dynamic postal sector is put in place to promote rapid economic growth. ICT is radically changing many aspects of the lives of the citizenry and the postal service with the support of GIFEC, is playing its role, by ensuring that consumers access all their needs, in a one-stop environment. Fifteen rural post offices have so far benefited from this support.

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SPECIFIC PPP PROJECTS

ICT IN GHANA

It ensures that rural communities benefit from increased access to optimally priced ICT services for national development, using appropriate cost effective infrastructure. Under this project, rural entrepreneurs are supported by GIFEC to operate small ICT business centres. Twenty centres have so far been established. Sixty more rural business centres are to be built across the country next year.

ICT Capacity Building

ICT for Sustainable Fishing Project The Ghana Investment Fund for Electronic Communications (GIFEC), in collaboration with the Fisheries Commission and the National Canoe Fishermenâ&#x20AC;&#x2122;s Council has introduced ICT for Sustainable Fishing, which seeks to facilitate the efficient location of shoals of fish in the coastal waters and inland water bodies to avoid fuel waste and loss of productive man-hours. The project also seeks to eliminate waste in the fishing industry by harvesting only matured fish, improve communication between fishermen on the high seas and inland base stations to enhance navigation in unchartered waters and ensure the safety of fishermen and rescue missions. Two hundred fish-finders with accessories have so far deployed to eighteen landing sites.

The objective of this programme is to promote digital inclusion at the community level and also help bridge the digital divide nationwide, by funding the provision of basic ICT training to civil and public servants and other people in underserved and unserved communities using the CIC facility. So far two hundred and thirty three people, comprising CIC managers and personnel of other institutions have been trained. Five hundred and fifty personnel of the Metropolitan, Municipal and Districts Assemblies (MMDAs) have also been trained at twenty-two CICs using CIC managers as facilitators. Four thousand more people are to be trained by the end of the year.

Rural Pay Phone Project The project is designed to enhance network quality in low/ weak signal areas, to offer telecommunication services to rural communities (bottom of the pyramid) and to support governmentâ&#x20AC;&#x2122;s initiative of providing rural access to telecommunications/ICT. Two thousand, two hundred rural payphones have been installed in communities, schools and colleges.

Community Initiated Project Under the Community Initiative Project, GIFEC collaborates with deprived communities interested in setting up ICT centres. The community provides the secured infrastructure and GIFEC provides the ICT equipment and internet access. Hundred such communities have been supported.

e -Learning Project

Easy Business Centre Project This is a project executed by GIFEC in collaboration with the Kumasi Institute of Technology and Renewable Energy (KITE).

GIFEC has, in collaboration with the Ghana Health Service and the University of Ghana, commenced an e-learning project as one of its key interventions intended to provide the required ICT support to enhance learning and work. Currently, the Agriculture Research Institutes of the University of Ghana (based at Kpong, Okumanini and Nungua) have benefited from computers and internet connectivity. The School of Surgery, Accra, has also been supported with thirty computers and internet connectivity.

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The project aims at mobilising experts from expatriate communities in the promotion of the health sector. It will also create an understanding of the benefits of e-health, current applications, technical requirement and ethical/legal issues to enable health professionals adopt this new technique and ensure speedy and faster provision of health services to people in, especially, the rural communities where the doctor to patient ratio is high. The project is linking selected regional and district health centres with a Wide Area Network to facilitate the exchange of information.

Content creation This GIFEC initiative seeks to empower educational institutions to fully utilise the ICT equipment supplied to the institutions. All thirty-eight Colleges of Education have been equipped with this software. The College Management Software helps with the administration as well as academic activities such as lecture notes and assignment uploads. An examination revision software has been developed for Senior High Schools to help pupils prepare for their final examinations. This has been deployed to one hundred schools and CICs. A desktop Television programme has been developed for the Community Information Centres to enable them disseminate useful local information and create local content.

ONGOING PROJECTS The following are ongoing projects at various stages of completion, in the regions: School Connectivity – 20 Nursing Training Colleges and 150 Senior High Schools (including all Girls’ schools), 40 Community Information Centres, 5 prison centres for the Ghana Prisons Services, 20 solar-powered Rural Telephony Masts, 700 Rural Payhones, 15 landing sites for the ICT for Sustainable Fishing Project, 10 booths for the Disability Employment Project and 2 schools for the blind - ICT Support for Schools for the Disabled 5 schools for the Deaf

PUBLIC ADVOCACY Since June 2010, GIFEC has in collaboration with some specialized agencies, National Communications Authority (NCA), Ghana Atomic Energy Commission (GAEC), Environmental Protection Agency (EPA), and World Health Organization (WHO), embarked upon a nationwide public education on health concerns about electromagnetic fields exposure, to raise awareness on issues of EMF exposure and health related exposure limits; provide accurate knowledge about mobile telecommunications and developments related to electromagnetic fields (EMF) exposure and health; provide

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an overview on best practices and initiatives related to harmonized policy- and law-making, standardization and risk communication. The Ghanaian rural dweller plays a major role in the informal sector. It is therefore, very important to give those who constitute a greater majority of Ghana’s population the necessary training and support to be able to seek information using ICT to better their economic, cultural and social lives. The impact on the Ghanaian economy will be enormous. The libraries, postal and Community Information Centres dotted all over the nation, are used to train, and empower them to look for business information. Through the projects, the poor and women in particular, are improving their lot while the girl child is getting access to education. GIFEC projects are achieving a lot in the unserved and underserved areas, where artisans like carpenters and dress makers search the web for fashion and design, and farmers find better farming methods, the latest technologies and ways to increase farming yields, and access information on fair prices for their products.

CHALLENGES OF OWNERSHIP AND SUSTAINABILITY The main challenges that the agency faces are the high cost of bandwidth which raises operational costs and high labour turnover at the CICs which affects the recruitment, training and remuneration of skilled IT personnel. Most of the personnel recruited to man the CICs, often leave after gaining the necessary experience, for greener pastures. Other challenges have included competition from the service providers, the very organisations that fund GIFEC. They are unwilling to co-locate on the masts which have been built by GIFEC, preferring rather to construct their own, even though co-location could help to bring down operational cost. Land acquisition is cumbersome and the cost of land is high, and since the service providers are more likely pay more for a piece of land than GIFEC, it is not easy acquiring land for the construction of facilities like the telecommunications towers.

THE WAY FORWARD Overdependence on contributions from the telecommunications service providers for financial support is the bane of the growth and extension of services of the agency. Any other ways the agency can increase financial support base would enable GIFEC make further inroads into achieving its mandate. These may include strategic partnership with the network operators for subzidised bandwith for GIFEC projects, an increase in the percentage of contributions from telecommunication service providers towards universal service projects to enable more projects to be initiated and a lot more of public private partnerships to facilitate extra funding.

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e-Health Project

About Vodafone Ghana Vodafone Ghana is an operating company of Vodafone Plc., one of the world’s leading telecommunication brands and also one of the most valuable global brands. The company has a significant presence in Europe, the Middle East, Africa, Asia Pacific and the United States. Vodafone Ghana is a total communications solutions provider, offering mobile, fixed lines, internet, voice and data. Currently, Vodafone is unmatched when it comes to fixed line and internet services. –It is indeed the leader and the company of choice for most Ghanaians. Since it started operating in Ghana, Vodafone has redefined telecommunications in the country. The telecommunications giant has championed a number ‘firsts’ in the industry including the introduction of Ghana’s first integrated bundle, Vodafone RED; the multiple award winning television show, HealthLine and a music talent reality show, ICONs. These innovative and pioneering initiatives have won the company numerous awards. Vodafone Ghana in 2009, established the Vodafone Ghana Foundation, the charitable arm of the business. The Foundation delivers to various communities and segments of the Ghanaian society, socially relevant and economically impactful investment programmes. Since its launch, it has introduced sustainable initiatives that are solving pressing social needs, including Healthline 255, Ghana’s first medical call centre run by doctors and nurses. Vodafone Ghana also has a specialist business unit known as Vodafone Business Solutions (VBS). VBS serves large, medium and small businesses as well as government agencies in Ghana by providing network based IT and communication solutions. It supports businesses to make the best investments in communication that will help them and connect better with their customers and internally with their staff. VBS has over the years empowered thousands of businesses in Ghana to grow, cut cost, increase efficiency and improve profits. This is done by offering bespoke market-led products and services specifically tailored to meet their needs. VBS has been a trailblazer in the industry, setting a high standard for the competition by introducing novel solutions to the Ghanaian market. This is manifested over the years in the introduction of the hosted Virtual PBX for businesses, hosted Audio and Video Conferencing Solutions, Vodafone Broadband Telephony for businesses, and the VBS Fleet Manager industry’s leading fleet and mobile assets management solution. No wonder that VBS was acknowledged in 2014 as the Enterprise Service Provider of the Year. It has specially trained account representatives who provide personalised services to corporates and Enterprises. Institutions only have to approach the VBS team with their requirements, and the team will put together the best solution of communication products and services. VBS also has a dedicated team that ensures that customer complaints are resolved in good time so they can remain efficient and profitable The Vodafone Business Solution has become a strong partner and trusted provider of varied, reliable and affordable ICT services and solutions for SMEs in Ghana. It supports more than 15,000 SMEs and on the average attracts 800 SMEs every month, enquiring about both voice and data services. Our range of unique products designed to drive performance and minimise risk for SMEs include Smart Choice and Dedicated Internet Lite. Please call +233 800 10000/+233302 33 4040 from any Vodafone line (domestic calls only) or email business.gh@vodafone.com for further details on Vodafone Business Solutions and our various business products.

ICT IN GHANA

The National Communications Authority The National Communications Authority, (NCA), was established by an Act of Parliament, Act 524 in December 1996, which has since been repealed and replaced by the National Communications Authority Act 769 of 2008. The Authority is the central body mandated to license and to regulate electronic communication activities and services in the country. The Authority thus regulates all commerce and initiatives in the communications space in the country regardless of the technology employed. The vision of the Authority is to become the most forward-looking and innovative Communications Regulatory Authority in the subregion; by creating and maintaining an efficient, transparent and business friendly environment to enable Ghana become the premier destination of ICT investment in the sub-region. Its mission is to regulate the communications industry by setting and enforcing high standards of competence and performance to enable it contribute significantly and fairly to the nation’s prosperity through the provision of efficient and competitive services. The NCA grants licenses and authorizations for the operation of electronic communication systems and services through the assignment, allocation and regulation of the use of frequencies in conformity with policies, as well as developing strategies for the communication industry (civil and security use).

• Submarine Cable Landing Licence • Communications Tower Licence • Internet Data / Public Data Services • Value Added Services • VSAT for Private/Corporate Use • VSAT Data Network (Direct-ToHome (DTH) • VSAT for Carrier Network Licence • Inmarsat Terminal (Terrestrial) Equipment Dealership Licence Equipment Type Approval Broadband Wireless Access (BWA) Licence in the 2500-2690MHz

Corporate Governance

These include Licenses and Authorizations for the following:

For effective governance and leadership, the NCA is governed by a nine-member Board of Directors and has six major divisions under the leadership of the Director General listed as follows: • Administration • Consumer and Corporate Affairs • Engineering • Finance • Legal • Regulatory Administration

Radio Communication Licences • Aeronautical Services • Land / Mobile Services • Marine Services • Trunk Radio Network

The NCA, together with industry stakeholders, is contributing towards the development of the telecommunications industry in Ghana in several ways such as:

Broadcasting Authorizations • Radio Broadcasting Services. • Television Broadcasting Services.

Mobile Number Portability (MNP)

Telecommunication Licences / Authorizations • Mobile Cellular Operations 40

The performance of the MNP in Ghana is unchallenged in Africa, and ranks among the best implementations in the world. Since the system was launched in July, 2011, over 1,655,404 porting requests have been successfully

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Mr. Paarock VanPercy Director General NCA

completed, representing 6% of the total active mobile subscription base. Even though the MNP requires a port to be completed within 24 hours, average porting times dropped from 5 hours, 21 minutes in July, 2011, to 5 minutes, 25 seconds in June, 2013. This has enabled mobile customers who have been reluctant to change networks to do so as MNP has removed obstacles relating to cost and inconveniences of changing numbers.

Digital Terrestrial Switchover Project

Ghana is transitioning from analogue to digital broadcasting to ensure that television viewers receive better quality video and audio signals, more channels and greater interactivity and also result in the release of frequencies for services such as mobile broadband. The NCA is working in accordance with the Geneva 2006 (GE06) agreement of the International Telecommunications Union (ITU) to ensure that by 2015, all terrestrial television stations migrate their transmission from analogue to digital platforms.

Harmonised Short Codes

Another new activity the NCA has embarked on in collaboration with Mobile Network Operators is to ensure that customer services across all networks can be accessed with uniform short codes. To this end, all short codes for accessing services including Credit Recharge, Credit Balance, and Call Centre enquiries will be uniform for all mobile telephony consumers in Ghana, irrespective of the network.

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Recognising that access to information plays a key role in development, the NCA has awarded four (4) Broadband Wireless Access (BWA) licences in the 2500 – 2690 MHz band to develop and operate broadband networks. This is aimed at supporting Government’s ICT policy initiative by providing wireless broadband connectivity countrywide to enhance education, commerce and research.

Guidelines for the Deployment of Masts and Towers

Following the growing demand for mobile services in Ghana, there was an increase in communications infrastructure such as towers and masts to ensure adequate network coverage and access to good quality of mobile telephony services. To address public concerns related to health, aesthetics and safety in the construction of towers, the NCA spearheaded the constitution of an Inter-Ministerial Committee to collaborate in the development, adoption and management of guidelines to regulate the deployment of Masts and Towers in the country. The committee developed a fast and flexible permitting scheme, clearly defined application and approval procedures, harmonised fee structure, and encouraged co-location to reduce the proliferation of towers in the country.

Base Station Audit

Further to the development of the Guidelines for the Deployment of Masts and Towers. In doing this the Authority contracted three (3) independent audit firms to conduct a national audit of base stations in the country. The observations made during the audit exercise were that Telecoms Operators and Tower Management Companies needed to rectify and ensure compliance with the guidelines and industry best practices for their operations. The audit also revealed that, radio frequency emission levels at all the sites measured fell significantly below the internationally acceptable ICNIRP minimum exposure levels, thus allaying fears from the general public that they were susceptible to emissions causing illnesses.

Decentralisation

The authority, as part of its expansion programmes and in fulfillment of policy directives, is decentralizing its

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Reclassification of FM Stations

operations. To this end, in 2011/12, the authority opened three (3) zonal offices in Kumasi, Takoradi and Tamale. In 2013, additional offices were opened in Ho, Sunyani, Koforidua and Bolgatanga. The objective of these offices is to enable the authority bring its services closer to the communities and also to facilitate effective monitoring of spectral resources as well as the quality of service delivered by Operators to their consumers in the regions.

The NCA has recently re-classified the coverage of all FM stations nationwide to introduce reforms. The re-classifications took into account the purpose, location and coverage area of FM stations and it is expected that it will tackle the challenges of limited FM authorisations and improve media pluralism as a tool for development.

INDUSTRY DATA Operational Service Providers as at July, 2014 Category of 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Jul-14 service Fixed Line 2 2 2 2 2 2 2 2 2 2 2 Cellular service 4 4 4 4 5 5 5 5 6 6 6 ISPs 25 29 32 34 35 35 35 35 20 26 26 FM radio 84 84 127 129 146 177 201 203 233 268 291 TV 8 8 10 11 13 14 14 16 18 19 20

Summary of FM Stations as at July, 2014 Region

Total No. Public Public Community Campus Commercial Operational Non Auth. Foreign Operational

Greater Accra 47 2 3 6 3 33 44 5 Ashanti 47 2 1 4 2 38 42 5 Brong Ahafo 47 3 0 4 0 41 44 4 Central 47 2 0 7 3 15 22 5 Eastern 31 2 0 5 1 23 26 5 Northern 33 7 0 11 0 15 23 10 Upper East 11 2 0 3 1 5 10 1 Upper west 15 3 0 8 1 3 8 7 Volta 36 3 0 8 1 23 28 8 Western 59 5 1 5 1 47 42 17 Total 354 31 5 61 13 244 291 63

Composition of Access Lines - Mobile & Fixed as at July, 2014 Operator 2006 2007 2008 2009 2010 2011 2012 2013 Jul-14 Kasapa (Expresso)

200,000 289,000 394,051 262,259 239,815 186,751 165,863 133,663 122,356

Millicom (Tigo)

1,304,000 2023,000 2,887,927 3,420,354 3,999262 3921,754 3,698,409 4,021,225 4,037,212

Scancom (Mtn)

2,585,000 4,016,000 6,428,218 8,000,946 8,721,249 10,156,112 11,734,500 12,929,528 13,431,919

Gt/ 880,000 1,276,000 1,592,451 2,132,119 2,772,364 4,275,521 5,259,487 6,048,792 6,749,504 Vodaphone Mobile Airtel Mobile Glo Mobile Ltd

267,808 1,293,238 1,754,259 2,625,705 3,192,154 3,395,263 3,659,531 -

1,568,014

1,498,011 1,368,715

Total Mobile Lines 4,949,000 7,604,000 11,570,455 15,108,916 17,436,949 21,165,843 25,618,427 28,026,482 29,369,237 Gt/Vodaphone 368,900 383,200 140,676 265,236 267,033 274,607 274,661 261,162 256,816 Fixed Airtel Fixed

3,000

2,900

2,568

2,153

10,864

10,114

10,320

9,260

8,355

Total Fixed Lines

371,900 386,100 143,244 267,389 277,897 284,721 284,981 270,422 265,171

Total Access Lines

5,340,900 7,990,100 11,713,699 15376,305 17,714,864 21,450,564 25,903,408 28,296,904 29,634,408

* As at July 2014, Telephony penetration was 111.77% and mobile broadband penetration stood at 55.71%.

CONTACT INFORMATION National Communications Authority, 1st Rangoon Close, P. O. Box CT1568, Cantonments, Accra Tel. No.: 0302 771701 / 762823 Fax: 0302 763449 Email: info@nca.org.gh, complaints@nca.org.gh Website: www.nca.org.gh REGIONAL OFFICES: �Kumasi �Takoradi �Tamale �Sunyani �Ho �Koforidua �Bolgatanga

GHANA BUSINESS & FINANCE

ICT IN GHANA

Broadband Wireless Access (BWA) Licence in the 2500 – 2690MHz

ICT IN GHANA

ICT Park Tema A stable promise The ICT Park Tema is a Public-Private Partnership (PPP) initiative between the Government of Ghana (GoG) and the private sector. Per this business model the Government of Ghana has provided land on a 50 year’ lease at the Free Zones enclave (Special Economic Zone) at Tema. Additionally, GoG has put in place initial site infrastructure and Advanced Building (Plug-N-Play) and handed over to the private sector to partner to complete the development of the park. Construction of the ICT Park Tema, began in May 2012, in alignment with the national policy to develop a knowledge-based economy, build competencies and create job opportunities and above all, an increase in the Gross Domestic Product. The ICT Park is 50 acres (22 hectares) in size and the Phase 1A has been completed with an Advanced Building and site infrastructure, meticulously laid out for tenants. On completion, the park is expected to have an efficient ecosystem with iconic world-class buildings for offices, restaurants, banks, recreation and accommodation facilities. The ICT Park is currently managed by the IT Enabled Services (ITES) Secretariat.

WHY INVEST IN GHANA? � Over the years, Ghana has proven to be the most viable business destination

in the Sub-Sahara region. The country has become an ideal business location amalgamating from several factors. � High level of Security Stable political environment Commendable multi-party democracy of over 20 years. � First class international schools � Gateway hub for West Africa with twenty-one airlines flying in and out of its international airport weekly. � Fastest growing economy in Africa with a Gross Domestic Profit (GDP) of $90.882 billion and a GDP growth rate of 8.5%.

Operators, an ICT Incubator and service providers. The Park is well served with the following; � A dedicated electrical power grid � Large water reservoir constructed to ensure the constant supply of water � Central Sewerage System � Telecommunication Services � Securitized enclosures

TARGET OF ICT PARK TEMA � Local, foreign and multinational developers who deal in residential and commercial properties.

WHAT DOES THE ICT PARK HAVE TO OFFER? Economically the ICT Park is expected to create stable jobs for several professionals. Tenants and developers are assured of ease in operations through efficient systems put in place to enhance smooth business operations. Being operated as a PPP business model that is private sector led, the ICT Park Tema-Ghana will be run professionally with little-to-null political interference. This will cut down bureaucracy so that the park’s investors can operate to attain the highest level of profitability to ensure that investors get value for their money. The ICT Park Tema business ecosystem is for Business Process Outsourcing (BPOs), Information Technology (IT) companies, Telecom

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THE PROGRESS OF ICT IN GHANA SO FAR Presently Ghana is a host to prominent internet companies like rlg, IBM, Huawei, Tecno amongst others who have successfully invested in the country’s IT potential with great success.

SUCCESS STORY OF THE ICT PARK TEMA The ICT Park Tema is currently the groundbreaker in the nation’s ambition to being the ICT powerhouse in the sub-Saharan region. This park has revolutionized the paradigms of the populace and confirmed the government’s strong commitment to ICT and the knowledge economy. Already, with the completion of the Advanced Structure under Phase 1 of the project, the Park has created business opportunities, fostering entrepreneurship in the sector, harnessing an environment of knowledge building and knowledge transfer through business incubators.

ICT IN GHANA

� Foreign and local construction companies with financial support. � Strategic investors as tenants. � Service companies � Subsidiaries of multinational companies � Small and medium sized ITeS/BPO

WHO MUST CONTINUE THE SUCCESS STORY? Much has been done on the ICT Park Tema to ensure that the vision of the park is achieved. Especially, being a PPP business model, the new phase of development and occupancy is been willed to private investors who will join the revolution as strategic developers to put in place world-class infrastructure for potential tenants. As well as strategic tenants with clouts whose presence would have the potential to attract other tenants in the ICT industry.

INCENTIVES FOR ICT PARK TEMA DEVELOPERS � 100% exemption from payment of direct, indirect duties, and levies on all imports for production and exports from free zones. � 100% exemption from payment of income tax on profits for 10 years which will not exceed 8% thereafter. � Total exemption from payment of withholding taxes from dividends arising out of free zone investment. � Relief from double taxation for foreign investors and employees where Ghana has a double taxation agreement with the country of the investors or employees. � No import licensing requirements. � Minimal customs formalities. � No conditions or restrictions on repatriation of dividends or net profit,

payments for foreign loan servicing, payments of fees and charges for technology transfer agreements and remittance of proceeds from sale of any interest in a free zone investment � Free Zone investors are permitted to operate foreign currency accounts with banks in Ghana.

INCENTIVES FOR ICT PARK TEMA TENANTS � Subsidies � Income tax benefits � Duty concessions � Relaxation in municipal laws � Investor-friendly foreign exchange regulations and repatriation rules � Uninterrupted power supply � Off-taker agreements � Solid financing from domestic syndicated banks � 100% support from government and agencies � Better returns on investment, duty free and tax free

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GHANA BUSINESS & FINANCE

BOOK REVIEW

Foreign Aid A fictional story by Pede Hollist

id, outside of the humanitarian variety, is usually an economic tool where measurable returns are expected from recipient countries ranging from the ability of the provider to access economic activities, form diplomatic ties, establish a military presence among many others ambitions. Pede Hollist’s story succinctly captures the complexities of giving aid which usually involves the aid provider in developed countries providing assistantship to the masses and elites in developing countries. Elites in developing countries are those who usually have direct access to a significant amount of resources including aid monies and are also in the fore in decision making. In his story, Pede presents several elitist characters including Ali Sayyer and a supercilious Minister of Mines while the common man is portrayed through the eyes of the family of, and the main protagonist Balogan or “Logan”, as he is called in his quest to assimilate into his new home, the United States. The story, though short delves into the struggles of immigrants specifically Africans in the quest to live the much promised American dream. Just as the dreams of many immigrants are shelved away in the face of reality, in this true to heart tale Logan’s dreams of becoming an economist fade slowly and painfully into the horizon over the course of the read. Logan’s hard earned gains in his new life, he learns do not make him

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significantly better off than his family back in Sierra Leone; both Logan in America and his family back in Sierra Leone must struggle on a daily basis to survive.

“ Through his characters, Pede touches on the concept of the identity crisis, the clash of economic ideologies and moral values of many transitioning from the developing into the developed world.” The short story brings the reader back and forth between two very different cultural environments with Logan stuck in the middle trying on the one hand to resolve the financial problems of his family back home as the benevolent aid giver due to an overwhelming sense of guilt accrued from years abroad while attempting to benefit from aid himself in the US. As Logan approaches these delicate balancing acts he slowly comes to grips with how complex his situation and that of many immigrants truly is when they go abroad and are ladled with the responsibility of supporting the family they neglected in their emigration. As Logan’s father eloquently interjects in a heated deliberation in the story, “Before you change things, you should first

know why they are the way they are.” In Pede’s story the reader sees the link between the inadequacies of foreign aid in addressing many of the pressing problems in recipient countries through the microcosm of family’s dependence on remittances from a struggling immigrant in America. The reader comes out of the experience with the suggestion that aid may only target a small portion of the underlying structural problem of the recipient without taking into totality the other strings of rot in the system. Logan’s attempt to financially support his family from the US turned out to be just the tip of an iceberg of much larger problems that in essence had little to do with lack of resources. In a captivate manner Pede draws the reader into his work by systematically revealing more complications behind a seemingly easy problem. With the incorporation of similes, descriptive words and humor he awakens the imagination of the reader. He also writes in a fluid manner therefore making his work easy to read and understand. Through his characters, Pede touches on the concept of the identity crisis, the clash of economic ideologies and moral values of many transitioning from the developing into the developed world. In some of the characters we see hope and resilience in a seemingly hopeless environment. This is a great work figuratively discussing limitations in providing aid of any form which enables the reader to draw parallels to their approach in assisting others.

GHANA BUSINESS & FINANCE

OUTLOOK

EUROAFRICAN TRADE

SIGNIFIES CHANGING RELATIONS October represents a deadline for the various African blocs to negotiate and accept a free trade deal with the EU, a deal which has been on the table since Doha 2000. African relations with the EU are split into five blocs: West Africa, Central Africa, Eastern and Southern Africa (ESA), East African Community (EAC) and the Southern African Development Community (SADC). As of now, West Africa and the SADC are the only two blocs to have effectively agreed to the Economic Partnership Agreement (EPA) while negotiations are still ongoing regarding the other three blocs. The European Commission has shown that West Africa is the largest trading partner to the EU out of the five blocs and contains the largest African economy, Nigeria. Whether or not the other blocs agree to the deal, there has been a paradigm shift towards using trade as a means of development, compared to an aid-based approach. China has laid the foundations for this approach as official figures show that Chinese trade with Africa has increased 20-fold since 2000, surpassing $200 billion this year. This has coincided with a massive rise in total Chinese GDP and a growing geopolitical influence across the world. Indeed the influence of China may be a factor in the hesitancy of the other African blocs to accept the EPA.

The relationship between Europe and Africa has been a long, turbulent and fundamentally unequal one. From the initial scramble for Africa at the beginning of the last century where most of the continent was partitioned between the major European powers at the time, mostly Britain and France, to the more recent acceptance that aid reinforces power imbalances between the North and South which further entrenches the perception of inequality and reliance. Martin Drewry (director of the NGO Health Poverty Action) in a recent Guardian article highlighted further

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imbalances from a UK perspective. He explained how poorly regulated multinational corporations using tax havens and giving aid in the form of unsustainable loans are further examples of how Africa loses out economically. Furthermore, he highlights that climate change adversely affects the developing world, through respective geographies, climates and less ability to adequately mitigate. An increase in trade is designed to move beyond the inequalities and foster a more equal relationship but as we have seen with Sino-African trade and some of the stipulations

Credit: The London Economic SEPTEMBER 2014

GHANA BUSINESS & FINANCE

OUTLOOK

within the EPA, it is questionable how equal this relationship is. The former governor of Nigeria’s central bank, Lamido Sanusi, expressed his dismay that China ‘takes’ primary goods such as metals and minerals while Africa receives manufactured goods that often have an adverse effect on local markets that cannot cope with an influx of cheaper goods. Concerns over opening up markets too much has also prevented Nigeria from fully committing to agreeing to the EPA while the rest of the West African nations have. The Wilson Center commended African negotiators for reducing the extent of market liberalisation stipulated within the EPA but still expected about 80 per cent of African markets to be opened up to European goods and services. It recently appeared as if Nigeria’s worries had been eased but there is scepticism about how much progress has really been made. Zambia (ESA) echoed these worries with their Minister of Commerce suggesting that further regional integration and trade predominantly through value addition of raw materials would be a better strategy, thus protecting local markets and supporting African economies more than the EPA would. This form of South-South cooperation is growing, as represented by the BRICS themselves. As South-South cooperation is increasing, it is challenging countries in the global North to rethink their relationship with the South. China in particular has a relatively advanced economy and can offer much of what Europe can. As China is still developing and can build a relationship on mutual experience it represents a more equal partner. With China offering so much, Europe has recognised that its relations with Africa need to change, which is signified by a shift towards increased trade. The USA is now following the same path, with the three day US-Africa summit in Washington taking place from 4th to 6th August. It is expected that up to $1billion worth of business deals will be announced in addition to more peacekeeping support as well as the expansion of food and power initiatives. The President of the African Development Bank, Donald Kaberuka, welcomed the changing relationship, “there are still bits of aid needed here or there but fundamentally the relationship is now defined as one of trade, investment, growth and opportunities.” It comes as no surprise to see America taking this approach but with Europe gaining a foothold and China heavily involved in Africa there is a risk that competition could become too high as the world powers jostle for trade deals and partnerships. Compared to the historical relationship that Europe has had with Africa, Africa is in a much stronger position now and from a geopolitical perspective Europe arguably needs the trade deals with Africa more than Africa does. This in itself shows that the relationship between Africa and Europe (and the rest of the world) has changed. The rise of developing countries is reworking power relations and this is reflected in Europe’s changing relationship with Africa. Whether the remaining three African blocs agree to the EPA may go some way to determining how influential Europe can be on the continent but the fundamentals of Euro-African relations are now more equal, reflecting Africa’s recent growth and burgeoning potential that will see Africa become an ever more important continent in the future.

OUTLOOK

Economic growth remains strong in West Africa – AfDB The latest issue of West Africa Monitor, which is produced by the country economists of the African Development Bank Group’s (AfDB), reports that despite some setbacks in political stability, growth in the subregions remain overall, strong. Below are excerpts of the report, available on the bank’s website. Political Developments Political stabilization in the region suffered a major setback, due to the resumption of conflict in Mali and the harshening of conflict in Northeastern Nigeria. In Mali, the northern town of Kidal witnessed fresh hostilities, following a visit by the Prime Minister last May. As such, skirmishes between the Malian army and armed groups resumed on May 21, but were promptly followed by a ceasefire, mediated by the African Union. The events were reflected in the parliament, as opposition parties unsuccessfully sought the resignation of the government over its management of the crisis. In Nigeria, increased global awareness of the conflict with extremist group Boko Haram, most exemplified by the highly mediatized kidnapping of 276 Nigerian schoolgirls from the town of Chibok in April, as well as a string of bombings and school shootings across the country, most recently on June 25th in Abuja, is putting pressure on the government to increase its involvement in the local conflict. Successful elections were held in April and May in Guinea-Bissau, yielding victory to the historical PAIGC (Partido Africano da Independência da Guiné e Cabo Verde) and confirming José Mario Vaz as president. The process took place in peaceful conditions, and bodes well for a stable outlook for the country, which awaits the resumption of international assistance and engagement. Further to the elections, the African Union ended

the country’s membership suspension from the organization. While no major election is expected in the next quarter, various pre-election moves have materialized, such as political concessions by the Ivorian Government to encourage the FPI (Front Populaire Ivoirien) opposition party to resume negotiations and reconciliation talks, in the run up to the November 2015 elections. The process is nevertheless expected to face many hurdles; as exemplified by the rejection of the Independent Electoral Commission (CEI) by the FPI in June 2014, on the basis that it was not adequately representative. On the other hand, the United Nations Mission in Cote d’Ivoire (ONUCI) has seen its mandate renewed in June 2014, for another year.

Economic Developments West Africa’s growth remains strong in the first quarter of 2014, with the region

GHANA BUSINESS & FINANCE

on its way to become the continent’s fastest growing region. Nevertheless it appears to perform somewhat below the optimistic growth projections of 7.1% in 2014. Nigeria’s GDP grew by 6.6% in the first quarter of 2014, according to its Central Bank. This represents a slight slowdown from the 6.9% posted in Q4 2013, largely due to due to a decrease in non-oil receipts, which was not offset by the oil sector’s performance. In Ghana, the GDP witnessed a 6.7% GDP growth in Q1 2014 down from the 9% in the corresponding period in 2013. While Nigeria appear to have regained market confidence and stabilized the Naira, pressures still remain on Ghana, with a continued depreciation of the Cedi and widening fiscal imbalances. Inflation remains subdued in most countries, with the notable exception of Ghana, where it has exceeded 7 percent q-o-q in the first quarter rising to 15 percent in June. The rise in inflation during the period was mostly influenced by cost push pressures arising from upward adjustments of petroleum and utility prices, higher transportation cost, and the pass through effect of the currency depreciation. Nigeria has managed to slow down its inflationary pressures, while Senegal, Niger and Guinea-Bissau are witnessing deflationary trends in the first quarter of the year. Nigeria is now Africa’s largest economy, following the rebasing

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OUTLOOK

exercise conducted by the government in April, which brought the Nigerian GDP measuring from a poorlyreflective 1990 base to a more relevant 2010 one and established its GDP at NGN 80.2 trillion/USD 509.9 billion for 2013. Nevertheless, these new figures should not comfort the country into an illusion of growth, but rather encourage it to address structural deficiencies and major weaknesses. By better reflecting the sectorial composition of the economy, it is hoped that this exercise will allow for better economic planning, as well as help display Nigeria as an attractive destination for investment. Commodity prices increase represent both a blessing and a challenge. The increase in the prices of cocoa and cotton during the first quarter of 2014, have reversed the downward trend experienced in most of 2013, strengthening the external position of countries exporting such commodities. Price of most staple foods, such as wheat, maize, or sorghum, also followed a similar pattern, displaying a high progression in 2014. However this may lead to an increased risk of food insecurity, as well as heightened pressure on many countries’ balance of payments.

Maintaining macro-economic balances remain a challenge for many countries where fiscal policy has weakened and debt-to-GDP ratios have risen rapidly (e.g. Burkina Faso, Cabo Verde, Gambia and Ghana), and the risk of debt distress is increasing. The composition of primary spending should be revised, to avoid jeopardizing macroeconomic stability and longerterm public debt sustainability. An interesting case is the one of Liberia’s most recent ‘austerity’ budget which is aimed at cutting the running expenditures of ministries and state

Social Developments

agencies, while freeing up resources for energy and road infrastructure investments. Access to energy remains a binding constraint for growth in West Africa, manifested by a shortage of production and national distribution paucity. Across the region, the sector suffers from inefficiencies and poor governance. With 57% of the people of the region deprived of electricity, concerted action by national governments and regional organizations to improve access is necessary.

Total Ebola cases (cumulative), per country

Ebola Crisis

The Ebola crisis, which had dominated the attention of West Africans during the first half of 2014, continues to worsen. The virus outbreak has killed 729 people by the end of July 2014, and the numbers are still increasing. Described by many as unprecedented in terms of geographical distribution, people infected and deaths, the epidemic has claimed most of its victims in Guinea, which has reported 460 cases and 339 deaths by the end of July. Sierra Leone has reported 533 cases and 233 deaths; and in Liberia, 329 cases and 156 deaths. Cote d’Ivoire, which had seen a single case of Ebola fatality in 1994, and Mali remain unaffected by the epidemic. The repercussions of the Ebola epidemic go beyond casualties in lives however, as a month-long border closure between Senegal and Guinea, which lasted from March 29 to May 6, reportedly impacted trade between the two countries, notably for agricultural goods. On July 27, Liberia closed most of its borders, then introduced travel restrictions between counties, as well as closed major markets – thus reducing the supply of food and goods throughout the country.

A new call for collective action was issued on 2-3 July, during a two-day summit in Ghana in the presence of ministers from 11 countries, along with health experts and Ebola survivors. The summit concluded that a joint strategy was necessary to halt the spread of the disease, which is lethal in 90% of the cases. The plan includes the establishment of a World Health Organisation “Sub-regional Control Center” in Guinea, improved surveillance and reporting of cases, and greater cross-country communications. Credit: afdb.org

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PERSPECTIVES

A re-look at

CENTRALISED MANAGEMENT (II) BY JULIUS CEASAR-TOKOLI

In the first part of the series, I concluded that it would be wise to take a re-look at the centralized management system.

gave the reasons for this as follows: Centralised management/ administration stifles creativity, innovation and initiative. This is because major decisions are made by head office and the local branch simply implements them. Centralised management/ administration also stifles productivity and raises operational costs needlessly. Since imagination, creativity, experimentation and innovation are stifled, the organization does not get to benefit from the diverse and collective intellect and wisdom of its human resources. And that would only mean

producing below par. Furthermore, centralized management/administration lacks realism. Those at the local branch are more in touch with the goingson in the local business territory. But since head office has its own universal system, the branch has no choice but to just ‘plug into the system’ and operate, leaving very little or no room for flexibility. What that means is that the peculiar exigencies of branches and their local business environment are largely ignored. Finally, effective control becomes a headache. Since head office relies

GHANA BUSINESS & FINANCE

on reports, it may not be aware of the standard of customer service delivery, for example, as well as other pertinent human qualities and human relations issues. In other words, while the books may portray a clean health bill, in reality there are qualitative issues that, unresolved, continue to spread like gangrene, festering under the façade of excellent management and administration.

Revise centralized Management / Administration Ultimately, it would be more practical

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to decentralize decision-making and operations. Branches should be given progressive to full autonomy to operate as separate entities with the possibility of expanding and ‘giving birth’ to other businesses. This can be achieved when, much like we see in nature, the branches are nurtured to the extent that they can ‘fly’ by themselves and then left on their own. This would engender initiative, creativity and innovation. That would especially be the case since the branch is more attuned to the real needs in the local branch’s community. Also, since workers at the branch are aware that they would only earn a living from what they produce, they would be highly motivated to give of themselves willingly. This would also mean that the reward system would be more

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Decentralized Management and Job Creation Talking of creating more jobs, some may think otherwise. For example they may ask, ‘Who would employ those sales assistants who would otherwise be employed by the supermarkets? And what about those that the banks would employ at the branches? Similar arguments were made when companies decided to computerize their operations. However, what those who make such arguments should have been asking is ‘What opportunities does this create for us?’

As I said earlier, when funds are saved, these can be channeled to other economic activities that would create jobs. The status-quo rather is stifling job creation. Furthermore, when more people use computers and mobile phones to shop, for example, that would mean the need to either manufacture or assembly computers and mobile phones locally. It would also mean more opportunities for technicians. These are some of the developments that the educational system should be adapting to so as to train a human resource base that can adequately take care of these trends. Opportunities are varied and numerous. However, it takes only those who think apart from popular thinking to realize them. When we eschew apprehension, fear and skepticism, we would see more avenues to exploit to make life more meaningful for us and generations yet unborn. Thinking positively frees our minds from needlessly using them to dwell on things that would only make us have nightmares and ghosts. Yes, the head office concept did have its day; it’s now time to move on. After all, the world has moved on. By emulating what nature teaches us about life, we would be creating more formidable systems that would stand the test of time. As I’ve been saying, those businesses that take advantage of current trends and adopt modern philosophies of management and business practice would be better able to stem the tide, as it were. They would be more flexible to take advantage of emergent needs and opportunities. Those are the companies that would thrive during the next fifty years. The time to change, then, is now!

The author is the CEO/ Managing Partner at Soleil Consults; a Strategy, Management and ICT firm. http://soleilconsultsgh. blogspot.com.

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PERSPECTIVES

progressive. Workers don’t earn so much simply based on their qualifications or what is normally the reward for one on a certain scale in the organization. Rather, local realities would determine who earns what and why. Thus costs are saved and productivity is bolstered. Conversely, by deploying the right type of IT technology and seamlessly synergizing it with good, modern management practices and business operations, the need for a branch may not be even necessary, to begin with. For example, a supermarket chain would rather find it more cost effective and prudent to deploy an e-commerce platform which can be accessed by everyone from anywhere. This would free much-needed resources that would otherwise be sunk into opening a chain of outlets for other investments. Similarly, a bank would rather deploy ATM’s to take care of local banking needs and thus reduce operational costs. This would in turn reflect in lower charges that would encourage more in the bankable population yet to join the banking population. Further, lower costs would mean, all other things being equal, lower interest rates (that is if bankers don’t seek to shield their inefficiencies and extravagance and come to speak big financial English to us). This would make it possible for MSME’s to thrive and thus create more jobs and wealth. The benefits to be derived from abolishing the head office nonsense would thus be immense: higher productivity, encouraging creativity and creating more jobs.

PERSPECTIVES

Customer complaints as business opportunities

GHANA BUSINESS & FINANCE

SEPTEMBER 2014

In Ghana a complaint is seen as a negative occurrence and is treated like a highly contagious disease, everybody runs from it. It’s no secret that customers complain. And any serious business knows that complaints are gold mines of information, letting you know how to better your product and service. Complaints help to identify and address the needs of existing customers and generate new business through referrals. In fact, the original reason for the establishment of organised customer service departments was to address customer complaints. Back in those days the driving force behind having a customer call the “complaints department” was to keep customers from abusing the time of the all important departments. Well, despite the fact that everyone in the modern business world knows that this is an outdated and backward perspective, it never fails to amaze me just how many business leaders still feel this way. Many still feel that complaints are to be fielded by customer service staff trained to placate customers and get rid of any customers unreasonable enough to fall outside the established range of reasonability. This may sound like a cynical view. However, what you have to understand is that it is human nature to want to distance yourself from negativity. Therefore not having this insight into human nature will allow their customer service departments to evolve into a daily expression of the natural human reaction to forced exposure to negativity. This surely isn’t positive. Think about it. Maybe you’ve been at a restaurant and the customer at the next table decides to really let their waiter have it because his tilapia wasn’t cooked right. Or, maybe you’ve been in line at the shop and the person in front of you starts making angry comments about the elderly customer wasting time at the till. How did you feel? Even if you agreed with the person’s position, I’m sure their behavior and attitude would not give you a warm fuzzy feeling. No one wants to wait longer than what they consider reasonable, or receive what they consider bad service. A certain amount of disappointment and frustration in these circumstances is more than understandable. However, the natural response to an overly negative reaction is to want to leave the situation; to feel nervous and uncomfortable. In some circumstances, we even find it hard to resist the urge to strike back against an undeserved attack or attacker. So how should an employee respond to this situation? Well, if you want to keep your job, you attempt to placate the customer. You apologize slavishly, and you wait until the end of your shift to voice how you really feel about the experience. Your competitors will have completely missed the point of the scenario above, but here’s the quick and dirty. The waiter IS your customer service staff. That rude customer will be on the other end of 20 percent of all of your inbound calls (certain

SEPTEMBER 2014

industries like finance and medical services might see higher). The question is, what is missing from this interaction? If you said the customer service, then I know you’ve gotten some value out of the previous sections. What the server or member of staff should do is ignore the negativity and discern what the actual issues are. He or she should then pass on the information to management so that corrections can be made for the benefit of this and every other customer as well. In addition, customer service means controlling the interaction to an extent that the customer understands that the outcome of their complaint depends upon the cooperative effort of the customer and the service representative against the problem; not the company, not the management, and certainly not the service representative. Finally, the employee needs to understand that part of their job is to rise above the natural response to negativity dictated by human psychology and focus not on the complainer, but on the complaint. This is a skill that, once developed, provides the representative with the power to productively manage the entirety of the service interaction regardless of the disposition of the customer. Here’s what this means for any customer-centric business: they would always emerge the winners in any customer confrontations because the their approach would differ in their attempt to resolve issues. Customers would have the sense of satisfaction when it comes to their complaints. The tendency your competition will have toward allowing the disposition of their customer service to be dictated by the natural response to negativity will result in an exploitable competitive weakness you can use to beat them out of business.

Yvonne MacCarthy (CSP, Cert FPC) is a customer service and interpersonal skills consultant and the Chief Executive Officer of Service Care Solutions and Client Service Institute, Ghana, providing practical customer service solutions for businesses as well as training in customer care for individuals. She is a member of the Personal Finance Society and the Institute for Customer Service, UK. She is a resource person on various media platforms including Citi FM, Multi TV, TV3, ETV and Radio Universe and also hosts a monthly show on TV Africa, “How are you doing, Ghana business?” Contact: clientserviceinstitute@yahoo.com

GHANA BUSINESS & FINANCE

PERSPECTIVES

What is our understanding of complaints as businesses? How often do we accept feedback in a positive manner and genuinely thank the customer? How many businesses consciously have a complaints handling procedure drafted for the benefit of the customer? These are serious questions that need serious answers.

EXECUTIVE SELECTION

Executive Selection General Manager (Packaging)

Operations Director WCA (GE Healthcare)

The position The General Manager will provide leadership and direction, as well as strive for compliance excellence in safety, health, environmental, and quality. He or she will exercise overall responsibility for the sales, manufacturing and administration of a full-line corrugated/conversion plant. In addition to management of day-to-day operations the General Manager will drive market based management initiatives/behaviors throughout the business; further develop the key management team; and continually develop the skills of the workforce through senior personnel.

The position The Operation Director will manage complex customer area through leadership and development of team (field engineers, installation field engineers, installation specialists, project managers, clinical apps specialists). He will create an environment to achieve ultimate customer loyalty. The LCT Operations Director will be accountable for the Services P&L, the Customer projects execution and the operational financial targets in the LCT.

The candidate The candidate will be a hands-on leader, with previous general management experience in a corrugated box facility. In addition, the person will offer a strong sales profile, knowledge of manufacturing processes to support customer needs, and an understanding of value creation through multiple product offerings. The ideal person will have a minimum of five years exposure in a similar function and will be well versed in Profit Centre Management; production/operations; finance; and the packaging business, specifically, the corrugated box sector. Apply: Visit www.listgrove.com to apply.

Senior Controller West Africa (Louis Dreyfus Commodities) The position The Senior Controller prepares and reports on daily PL, completes open purchase and sales, ensures accuracy of the open purchase and sales (specifically the valuation – quantity and price) and movement between open purchase, inventory, creditors and payment, as well as accuracy of movement between open sales, inventory, debtors and cash collection. He or she reviews and reconciles daily stock positions between execution daily stock sheet, IDS and Accounting - Review of individual debtors and creditors reconciliations. The Senior Controller is also responsible for the accuracy and completeness of all accruals and cut off entries around inventory, debtors and creditors. The candidate The ideal candidate must have at least a decade of experience in the industry, with at least half of that in a leadership role. He must have proven ability to lead significant change to achieve desired results. He must be able to work in a pressurized environment and must be an energetic and highly motivated self starter. Fluency in both English and French is mandatory. A Masters Degree in Finance, Accounting, Business Administration or similar is required. Apply: www.ldcom.com

The candidate Applicants must have a Master’s degree (Engineering) with at least 5-8 years of leadership experience in a technical environment. They must have proven experience leading a team, managing customer relationships and/or managing a P&L or comparable business unit and demonstrate the ability to develop and execute multiple priorities and approaches to meet objectives. Apply: www.3.gehealthcare.com

Zonal Brand Manager - FMCG (SGS Ghana) The position The incumbent will make use of a careful understanding of the Regional consumer, customer and competitor environment to develop compelling brand strategies, aligned to group brand strategies across Africa. He will monitor and report the group brand’s performance through brand health indicators and key consumer KPIs; contribute to the creation and development of brand strategy to grow brands market share volume/value and profitability; and oversee strategy implementation. He will support the delivery of overall budgeted profitability of the brand by developing solid brand strategies that grow and sustain brand performance; explore & exploit new growth opportunities for the brand; initiate and lead the New Product Development process ensuring that its requirements are managed and delivered according to targets; and collate local consumer insights and output from research plans to feed into the development of the brand strategy. The Zonal Brands Manager is based in Ghana and reports to the head of the Zone. The candidate The successful candidate will have a degree or its equivalent in Sales and Marketing as well as a professional qualification in Marketing and a minimum of 5 years verified experience in Brand Management. He or she will have the ability to develop strategy, generate insight and should have excellent communication skills and brand propositions. Proficiency in MS-Office (Excel, Word, Outlook, PowerPoint) is required. Apply: www.sgs-ghana.com

GHANA BUSINESS & FINANCE

SEPTEMBER 2014

Because Ghana is home no matter where you are

EVENTS

12th Intermodal Africa South 2014

The Ninth African Development Forum

This Forum seeks to enhance Africa’s capacity to explore innovative financing mechanisms as real alternatives for financing transformative development in Africa. It aims to forge linkages between, on the one hand, the importance of mainstreaming resource mobilization and the reduction of trade barriers into economic, institutional and policy frameworks, and on the other, advancing the post2015 development goals. African stakeholders will have a platform to share information and participate in indepth discussions on issues relating to innovative financing mechanisms in the following four thematic areas: domestic resource mobilization; illicit financial flows; private equity; and new forms of partnership. Date: 12th – 16th October 2014 Venue: Marrakech, Morocco Website: www.uneca.org

6th Annual Private Equity in Africa Summit

This summit, hosted by The Financial Times and Emerging Markets Private Equity Association, aims to provide a platform for delegates to assess the role that the private equity industry can play in harnessing Africa’s growth for economic transformation. It will examine how investors can chart a course through the risks and make the most of opportunities to achieve superior returns, while also supporting business development across the continent. The conference will include a presentation and discussion of Pension Funds and Private Equity: Unlocking Africa’s Potential, a joint publication by the Partnership Making Finance Work for Africa (MFW4A), the Commonwealth Secretariat and EMPEA, on the evolution and state of pension fund reform across the continent. Date: 16th October 2014 Venue: Intercontinental Hotel Park Lane, London, United Kingdom Website: www.eiseverywhere.com

Intermodal Africa is the biggest and most established annual Container Ports and Terminal Operations Exhibition and Conference on the African continent. The two day Conference Programme will feature 35 world-class conference speakers addressing topical issues and challenges on global transportation and logistics attended by a gathering of 700 senior executive delegate decision makers from the world’s leading shippers, cargo owners, importers / exporters, shipping lines, freight forwarders, logistics companies, ports, terminal operating companies, railway operators, port equipment and services suppliers from the Americas, Europe, Africa, the Middle East and Asia Pacific countries. It presents a commercial opportunity for 100 exhibitors and sponsors to network face to face with the delegates at this major annual international maritime transport exhibition and conference trade event for Africa. Date: 23rd - 24th October 2014 Venue: Lagos Oriental Hotel, Durban, South Africa

West & Central Africa Mining Summit

The West & Central Africa Mining Summit is intended to draw the attention of an international crowd towards the very important and critical issue of mining. The conference will see participation from a huge and varied crowd. The West & Central Africa Mining Summit will highlight several important facts about mining and will provide participants with a detailed overview of the field of mining. Date: 7th – 8th October 2014 Date: Accra International Conference Centre; Accra, Ghana

OECD/IOPS Global Forum on Private Pensions

This Global Forum, organized by the Organisation for Economic Cooperation and Development (OECD), International Organisation of Pension Supervisors (IOPS) and the Namibia Financial Institutions Supervisory Authority (NAMFISA), aims to address priority areas for the pension reform agenda. Sessions will include, amongst others an examination of the ongoing pension reform process in the African continent; a debate on the critical issue of the role of pension funds in long-term investment financing and capital markets development; public authorities’ approaches to defining target retirement income, the setting up of regulations and the development of supervisory processes and mechanisms to oversee and ensure the achievement of the future targeted retirement income; and fees and charges in private pension fund management. Date: 2nd – 3rd October 2014 Venue: Swakopmund Hotel and Entertainment Centre, Swakopmund, Namibia

The African Conference on Remittances and Postal Networks

IFAD (the International Fund for Agricultural Development) and its partners of the African Postal Financial Services Initiative are organizing the African Conference on Remittances and Postal Networks. This conference aims to provide a platform for African postal operators and key players involved in the remittance market, with the objective of sharing knowledge and addressing challenges in the provision of remittances and financial services through postal networks, as well as fostering dialogue between stakeholders and policymakers. The discussion will also touch upon the results of the pilot projects currently under implementation in Benin, Ghana, Madagascar and Senegal to share best practices and lessons learned. Session topics will include, amongst others: (a) “Remittances Market in Africa, Opportunities and Challenges”; “What Customers Want: Realities on the Ground”; “Postal Networks in Africa: Lessons Learned and Opportunities”; “Linking remittances and Financial Inclusion: Postal Solutions; and “Public-Private Partnerships: Creating Winning Synergies”. Date: 16th October 2014 Venue: Sofitel Hotel, Abidjan, Côte d’Ivoire Website: www.ifad.org

GHANA BUSINESS & FINANCE

SEPTEMBER 2014

STATS & INDICES

Trading Results - GH Cedi as at Thursday 21st August, 2014 Share Code

Daily Interbank Forex Rates as at Friday 22nd August, 2014

Year High (GHS)

Total Shares Traded

Last Transaction Price (GHS)

AADS 0.52 0 0.52 ACI 0.06 0 0.03

Currency

Pairs Code

Buying

Selling

U.S Dollar

USDGHS

3.0587

3.0613

Pound Sterling

GBPGHS

5.0759

5.0827

AYRTN 0.18 0 0.18

Swiss Franc

CHFGHS

3.3560

3.3593

BOPP 3.50 0 3.55

Australian Dollar

AUDGHS

2.8456

2.8519

Canadian Dollar

CADGHS

2.7945

2.7973

Danish Kroner

DKKGHS

0.5450

0.5456

CPC 0.02 0 0.01

Japanese Yen

JPYGHS

0.0295

EBG

7.98 1,500 7.10

New Zealand Dollar

NZDGHS

2.5709

2.5754

EGL

2.50 3,800 1.69

ETI

0.34 13,700 0.33

Norwegian Kroner

NOKGHS

0.4973

0.4978

FML

7.55 600 5.40

Swedish Kroner

SEKGHS

0.4438

0.4441

GCB

5.69 19,200 4.50

S/African Rand

ZARGHS

0.2863

0.2866

GGBL 6.20 200 2.40

Euro

EURGHS 4.0646 4.0671

Chinese Reminbi

CNYGHS

BCEAO

GHSXOF 161.28 161.38

GWEB 0.04 0 0.04

Dalasi

GHSGMD 12.95

12.96

HFC

Ouguiya

GHSMRO 95.67

95.75

Naira

GHSNGN 52.88

52.92

Leone

GHSSLL 1428.52 1429.74

PKL 0.06 0 0.06

WAUA

WAUGHS 0.1592 0.1592

PZC 0.79 0 0.45

0.4972

0.4976

Treasury Bill Rates

AGA

37.00 0 37.00

ALW

0.06 30,900 0.05

CAL

1.04 5,400 0.88

CLYD 0.04 0 0.04 CMLT 0.16 0 0.14

GLD

26.13 0.00 23.00

GOIL

1.00 1,900 0.99

GSR 2.75 0 2.75

1.60 300 1.30

MAC 3.59 0 3.30 MLC 0.39 100 0.31 PBC 0.17 0 0.12

SCB

20.56 107,430 18.20

SCB PREF

0.52

SIC

0.52 500 0.41

SOGEGH 1.17

as at Monday 18th August, 2014 to Friday 22nd August, 2014

800

0.55

0.99

SPL 0.04 0 0.04 SWL 0.03 0 0.04

Period

Discount Rates Discount Rates

TBL 0.35 0 0.24

91 - Day

23.5208%

24.9903%

TLW

182 - Day

23.3225%

26.4012%

1 - Yr Note

22.5000%

2 - Yr Fixed Rate Note

23.0000%

SEPTEMBER 2014

35.10 0 35.10

TOTAL 6.57 0 6.25 TRANSOL 0.03

0.03

UNIL 18.31 0 17.00 UTB

0.35 73,400 0.29

GHANA BUSINESS & FINANCE

COMMODITIES

Wholesale Prices (GH¢)

Month ending July 2014.

Unit Weight Accra* Bawku Kumasi** Tamale Techiman Takoradi Dambai this month last month Avg% Change

Cassava (Fresh Tubers) Bag 91kg 49.00 N/A 33.40 68.00 36.00 63.00 35.00 47.40 53.04 -10.64 Cassava (Gari)

Bag 68kg 100.00 115.00 164.00 116.00 71.40 134.00 96.00 113.77 115.79 -1.74

Cowpea (White)

Bag 109kg 356.00 215.00 220.00 269.60 212.00 322.00 256.00 264.37 235.86 12.09

Groundnut (shelled)

Bag 82kg 410.00 395.00 340.00 340.00 396.00 360.00 396.00 376.71 344.93

9.22

Maize (white, grain)

Bag

15.28

Millet (grain)

Bag 93kg 170.00 95.00 126.20 120.00 136.00 200.00 136.00 140.46 132.43

Rice (imported- Uncle Sam) Bag Rice (local-white) Soya Beans Tomato (cooking) Wheat (Grain)

100kg 122.00 75.00 50kg 190.00

N/A

122.00 91.60 216.00

N/A

92.80 230.00

136.00 116.00 107.91 238.00

N/A

218.50

93.61 207.50

6.06 5.30

Bag 100kg 370.00 195.00 240.00 208.00 208.00 148.00 236.00 229.29 206.36 11.11 Bag 109kg 310.00 155.00 126.00 164.00 188.00 256.00 196.00 199.29 165.46 20.44 Crate 52kg 266.80 110.00 101.60 152.40 107.20 280.00 200.00 174.00 179.43

-3.03

Bag 50kg 150.00 120.00 166.40 122.00 274.00 180.00 N/A 168.73 159.13 6.04

Yam (pona-medium) 100 tubers 250kg 422.00 N/A 192.00 250.00 410.00 386.00 264.00 320.67 286.79 11.81

NB: * Accra market is Agbogbloshie ** Kumasi is the Central market. To receive prices update and agric tips on your phone dial 1900 or visit www.esoko.com.

Maize

In the month of July, the average price of a 100 kg bag of white maize was sold between GHS 75.00 and GHS 136.00 in Bawku and Takoradi respectively with Bawku recording the lowest and Takoradi recording the highest. Maize in the month of July was sold averagely for GHS 107.91 per bag which gives it a gain of 15.28 per cent over that of the previous month’s GHS 93.61. In July the average price of a bag of maize increased because new maize still contained moisture and so it has not been traded largely on the markets. This has also affected the supply of maize to the markets.

Soya

The average price of a bag (109kg) of soya beans gained an average of 20.44 per cent in the month of July to close the month at GHS 199.29 from the previous month’s GHS 165.46. The commodity was sold between GHS 126.00 and GHS 310.00 for the Kumasi and Accra markets respectively, with Kumasi being the lowest and Accra the highest. The commodity is in high demand hence the high prices.

GHANA BUSINESS & FINANCE

Tomato

A crate of tomato for the month of July saw a dip in price. The commodity lost an average of 3.03 per cent to close the month at GHS 174.00 from GHS 179.43 the previous month. The commodity was sold between GHS 101.60 and GHS 280.00 on the Kumasi and Takoradi market respectively. This is because local tomatoes are on the market and there is also enough supply to the market. Relative to the average percentage change the previous month, the prices across the various markets are gradually stabilizing for the commodity.

SEPTEMBER 2014

Grab a copy of

GHANAâ&#x20AC;&#x2122;S FIRST GLOBAL BUSINESS READ at the following outlets: Challenge Bookshop

Total Fuel Station (Tsuibleoo)

The Medipoint Pharmacy

Total Fly Over

Agapet

Haatso Total

Circle Goil Fuel Station

Catholic Bookshop

Oppamo Supermarket

Kingdom Books & Stationery

Konekions (Holiday Inn)

Legon Shell

Paloma Vendor

Sakaman Total

Evergreen Supermarket

Engen Mart

SyTrix

Stadium Shell

Koala Shopping Centre

Roundabout Shell

Shell Mart

Goil Fuel Station (Labadi Road)

Neeni Clothing (Alisa)

Quick Shop

Artist Alliance

A-Mart

Ring Road Total

Apollo Theatre

Circle Vendor

Teshie Last Stop Shell

Into Clothing (La Palm)

Excel Mart

Hansonic Shell (KFC)

Tesano Total

Goil Mart

Dansoman Shell

Total Fuel Station (Trust Towers)

Santa Monique Supermarket (37 Goil) Sakaman Shell 37

Sakaman

Best Western Premier Hotel

Abundant Grace

Health Watch Pharmacy

Total Teshie First Junction

Ghana Post Office Vendor

Coconut Grove Hotel

Total House Fuel Station

Airport Shell

Kokomlemle

Teshie

Circle

Spintex

Circle

Adabraka

La Road Paloma

Sakaman

Weija

East Legon

Osu

Tema

La Road

La Beach Road

Circle

La Palm

Dome

Tesano

Dome

Adabraka Airport

Cedi House

Alisa Hotel Lashibi

Asylum Down

Teshie

Airport

High Street

Spintex Haatso

Tesano Legon Tema

Stadium La Road Community 11, Tema Champion Road Ring Road

Teshie Last Stop Dansoman Dansoman

Asylum Down North Ridge

Airport

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: info@ghanabizfinance.com www.ghanabizfinance.com