Business24 Newspaper 13 April 2022 by Business24 Online

WAPCO unveils monument in honour of TIPP to mark 10th years of commercial operations

NEWS FOR BUSINESS LEADERS

BUSINESS24.COM.G H | WEDNESDAY, AP RIL 13 , 202 2

AGI hints of full restoration of benchmark value regime

MTN gets licence to establish a bank in Nigeria

he Association of Ghana Industries (AGI) has indicated that it is making some headway in discussions with government on the reversal of the benchmark value regime adding that it is likely that the policy would be restored by end of this year. “Another stage of our advocacy has always been on policy inconsistency regarding the benchmark value. We have told government that policy inconsistency is inimical to industrialization and they have listened. They have given a timeline that per the

reviews made, we will get a restoration of the benchmark value in its status quo by the end of the year,” president of the association, Dr. Humphrey Kwesi Ayim-Darke, hinted at a dinner with the Indian business community in Accra. In April 2019, government announced a drastic reduction in the benchmark values that are used to calculate duties all imports as a state intervention to offer some respite to the importing community.

MTN in a statement said it had received a letter from the CBN granting approval to commence operations. The statement added that the date of commencement will be communicated to the CBN in accordance with requirements. “We refer to our notification issued on 5 November 2021 in which we communicated receipt of the approval in principle from the Central Bank of Nigeria (CBN) for Momo Payment Service Bank Limited (Momo PSB),” the statement said. “MTN Nigeria Communications Plc (MTN Nigeria) announces the receipt of a letter

UKGCC partners GCB Bank Plc to promote local businesses

‘Gold Coast Refinery undergoing certification programme’

THEBUSINESS24ONLINE.COM

News/Editorial

Let’s walk the talk in the fight against ‘saiko’ A EJF research on the saiko trade in 2017 indicated that saiko alone took around 100,000 tonnes of fish, worth over US$ 50 million when sold at the landing site. The practice of saiko, which is illegal, unregulated and unreported (IUU) fishing, is costing Ghanaians millions of dollars annually, and threatening coastal livelihoods. ‘Saiko’ is a severely destructive form of illegal fishing, where trawlers target the staple catch of canoe fishers and sell it back to local communities at a profit. It is one disturbing challenge of the fisheries sector that steals jobs, threatens food security and endangers Ghana’s economy. The continual abuses of the state’s marine resources are destroying Ghana’s fisheries, ruining lives and livelihoods, and breaking national laws, and there is the urgent need for stakeholder action on this menace. Ghana still needs an immediate and effective enforcement of its fisheries laws as the illegality continues to cause havoc along the fisheries value

chain despite the numerous legislations that’ve been enacted to curtail the problem. Perhaps, we will need some tougher sanctions for perpetrators to serve as a deterrent to others and prove that this government means to stop saiko. There have been several interventions from both national and regional actors in the fisheries space in the fight against saiko. While a strong crackdown last year has stopped the landings of saiko canoes, there is now evidence that the trade may be taking a different form. Under this new method, saiko catches – including juvenile fish – are being landed directly by trawlers at Tema port and brought to communities by road, undercutting small-scale fishers, according to EFJ. We cannot give up now neither can we relent on our quest to secure the nation’s marine resources and the livelihoods that depend on them and the time to act is now!

AGI hints of full restoration of benchmark value regime starts from page 1

L im ite d Copyright @ 2019 Business24 Limited. All Rights Reserved. Your subscription along with the support of businesses that advertise in Business24 -- makes an investment in journalism that is essential to keep the business community in Ghana wellinformed. We value your support and loyalty. Contact: editor@business24.com.gh Newsroom: 030 296 5315 Advertising / Sales: +233 24 212 2742

The values of all imported was reduced by 50percent whilst that of vehicles was downed by 30percent, in an incentivizing gesture to boost the competitiveness of Ghana’s ports through reduced smuggling whilst enhancing port revenue. However, its implementation become the bone of contention between the Association of Ghana Industries (AGI) and the Ghana Union of Trader Associations (GUTA)—the two key beneficiaries of the policy. The former argued that it wasn’t feasible to have the policy, which sought to cushion industrialists—who import raw materials for local production—to be extended to general importers who flood the domestic market with finished and

cheaply priced goods to sell on the local market, ultimately leading to the full withdrawal of the intervention. Dr. Ayim-Darke said that the inconsistencies with the policy has led to distortions in Customs harmonization codes and that businesses that enjoyed benefits such as tax deferments and concessionary duties are now facing as a result of these policy inconsistencies. As government intends to restore the regime, the AGI says it will further engage government to make sure that the proper thing is done for industrialization and harmony in the economy.

| NEWS

WEDNESDAY, APRIL 13, 2022

MTN gets licence to establish a bank in Nigeria starts from page 1

dated 8 April 2022 from the CBN addressed to Momo PSB conveying final approval to commence operations. The date of commencement will be communicated to the CBN in accordance with its requirements. “MTN Nigeria affirms its commitment towards the financial inclusion agenda of the CBN and the Federal Republic of Nigeria and we are excited at this opportunity

to support its fulfilment”. Mobile money is an electronic service that enables users to send and receive money, make payments and perform other transactions using their mobile phones. The system is used across a number of MTN’s African markets, including Zambia, Ghana, Cameroon and the Democratic Republic of Congo.

WAPCO unveils monument in honour of TIPP to mark 10th years of commercial operations starts from page 1 The West African Gas Pipeline Company Limited (WAPCo) has unveiled a special monument in honour of the Takoradi to Tema Interconnection Project (TIPP) at its Regulating and Metering Station (R&MS) at Tema. The completion of the project has increased Ghana’s domestic gas supply to the network for the West African Gas Pipeline (WAGP). The West African Gas Pipeline (WAGP) transmission system was originally designed and built to transport natural gas from supply sources in Nigeria to customer needing natural gas for cleaner and more efficient power generation in Benin, Togo, and Ghana. Ghana is the main customer for the WAGP with delivery points at Tema and Takoradi. Since the construction of the WAGP, Ghana has explored and developed offshore oil and gas fields that are now able to supply gas to power plants in the Aboadze Power Enclave (near Takoradi). Ghana’s natural gas supply to the Takoradi enclave far exceeds the needs of customers hence the need for the TIPP to serve the needs of customers in the Tema industrial enclave. The WAGP transmission system’s location in Takoradi provided the opportunity to transport gas from the western part of the country to the industrial zone in the East at

Tema, where WAPCo already has an existing facility. WAPCo in collaboration with the government of Ghana, the Ghana National Petroleum Corporation, Eni Ghana, and the Ghana National Gas Company undertook the Takoradi-Tema Interconnection Project. The TIPP links the Ghana National Ghana Gas Company’s system to the West African Gas Pipeline system at Aboadze in the Western region of Ghana, allowing gas from Ghana’s domestic

sources to be transported in reverse flow to Tema. Prior to the completion of the project, the WAGP was only transporting gas in one direction, from Nigeria to Ghana with exit points at Tema and Takoradi. The interconnection project has also made it possible for WAPCo to now transport natural gas from the western part of the country to be used in the Tema power enclave, in addition to still transporting gas from Nigeria to Benin, Togo and Ghana.

As part of the interconnection project, WAPCo’s Tema Regulating and Metering Station’s delivery capacity was expanded in 2020 to 235 Million Standard Cubic Feet per Day of gas (MMscfd) from 140 MMscfd. In addition, WAPCo’s Takoradi R&MS had a new process area constructed in 2019 with 225 MMscfd gas receipt capacity. Another event will be held in Takoradi on Thursday April 14, 2022 to unveil another monument to celebrate this remarkable milestone in the WAGP’s life cycle.

| NEWS

WEDNESDAY, APRIL 13, 2022

FBN Bank more than doubles profit before tax Starts from page 1 FBNBank has more than doubled its profit before tax in the 2021 financial year. The bank’s profit grew by 112 per cent to close at GH¢111.8 million in the period under review. A release issued by the bank indicated that the growth was anchored on year-on-year (YoY) appreciation in net interest income by 16.9 per cent while income from fees and commission also rose by 24.7 per cent. “Consequently, revenue and pre-tax profit for the year saw a jump of 55.8 per cent and 112.3 per cent to end the period at GH¢219.8 million and GH¢111.8 million, respectively,” it said. It said despite the tight economic conditions occasioned by the emergence of the delta variant of COVID-19, FBNBank grew its loan book by 13 per cent from GH¢533.2 million in 2020 to GH¢602.2 million in 2021.

“This contributed to a growth in total assets to GH¢1.9 billion from the GH¢1.8 billion recorded in the previous year. Other asset classes which saw growth over the period include cash and cash equivalents,

investment securities as well as trading assets,” the release said. The bank also bucked the trend of rising non-performing loans (NPLs) as it recorded a 3.33 per cent drop in the key ratio to end the year at 4.25 per cent. “On another key quantitative metric, Capital Adequacy Ratio (CAR) – which measures the bank’s available capital relative to its risks, especially loans and advances, FBNBank recorded a ratio of 63 per cent, far above the regulatory minimum of 11.5 per cent as well as the industry average of 20 per cent. Additionally, the lender closed the year with its liquidity and leverage ratios at 98 per cent and 26.7 per cent, respectively.” According to the statement, FBN Bank also doubled its earnings per share (EPS) from nine pesewas in 2020 to 18 pesewas in 2021. The Managing Director of the bank, Victor Yaw Asante, said; “we are focused on delivering growth on all the key indicators ensuring that we stay connected to our core business of placing the customer

at the heart of what we do.” He said the bank’s twin engines of retail and corporate banking had propelled its performance in the right direction “and we are happy to note that we are on track with the right momentum to claim our place in the industry. We look forward to a more engaging 2022, where we will be more committed to our stakeholders by meeting their needs, delivering our gold standard of value and excellence.” Earlier this year, FBNBank Ghana announced its aim of becoming a tier one bank and by so doing, contributing significantly to the country’s economy. The bank’s declared focus areas for this year are the Small and Medium Enterprises (SMEs) segment, Retail and the Youth. Already, two new branches have been opened for business at Atomic Junction and Abossey Okai since January, indicating a strong commitment to deliver on their objective through a greater engagement with their key segments.

‘Gold Coast Refinery undergoing certification programme’

BY EUGENE DAVIS

The Western Regional Minister, Kwabena Okyere Darko Mensah, has confirmed that Gold Coast Refinery is currently undergoing the certification programme with Responsible Jewelry Council, an affiliate of London Bullion Market Association (LBMA). Gold Coast Refinery is the first state of the art Gold Refinery in West Africa and the second largest in Africa, with the capacity of refining up to 480 Kg of gold a day. It affords varied opportunities to Ghana and sub-region including putting Ghana on the gold map of precious metal refineries. Promoting government policy initiatives in value addition and industrialization. Providing skill enhancement to employees and job opportunities. Further, it ensures reliability and reducing the time in assaying and refining to release income from sales. Speaking at the opening of the 2022 Ghana Mining Week in Takoradi last week, he stated the Mining Week (like the two previous editions) is a call to investors in the areas of exploration, mining, processing, refinery, jewelry, mining-tourism, financing, infrastructure development, environmental management. According to him, all the sixteen (16) mineral resources of the nation;

majority of which, are found in the Western Region in addition to our agricultural, tourism, oil and gas endowments and reckons it is time to tap into the economic potential of these unsung minerals. He also indicated that as an outcome of the Ghana Gold Expo/ Mining Week project, Gold Fields Ghana Limited is currently advancing discussions with University of Mines and Technology (UMaT) for both entities to train community mining companies in the Western Region. The Western Regional minister and Member of Parliament for Takoradi, also adds consequently, in line with the theme for this year- “The Potential of Mining For Sustainable Development”, the 2022 Ghana Mining Week seeks “togetherness in mining” and so, in the next two days, accredited representatives of our stakeholders (local, national

and international) will be offered a formal dialogue on tackling the most critical environmental issues, adopting the evolving Government policies on mineral resources extraction, boosting investor interest and promoting responsible and safe mining among others. Views will be collated and Action Plans produced to drive a regional-based commitment towards an accelerated mine tailing development and sustainability of the mineral resources via risk mitigation and turning challenges into opportunities. As part of the programme outline,it was expected that organisers will undertake a diplomatic mining tour to Adamus Resources Limited to acquaint ourselves with their operations i.e., Tailings Dump, and to share in their successes regarding reclamation and water treatment technologies.

Mr. Okyere Darko-Mensah, further commended the coming on board of the Minerals Income Investment Fund (MIIF) as “a complementary step to what we have been advocating for over the period. The MIIF, through its Small-Scale Mining Incubation Programme is building capacities of small scale and community mining ventures and offering financial models (for equipment financing) which traditionally are difficult for the small- scale miners to access.” “With all these investments and commitment on the part of Government, I can confidently say that, in the nearest future, size will be the only criterion to differentiate between large- and small-scale mines, and that, all other things such as Mining Practices, Safety, Recovery, Sale and Sourcing of Minerals will be the same for both. In this regard, I wish to state that, the Western Region is better placed to serve as the headquarters for responsible mining and mining related activities. We therefore hope to see this realized through increased private sector involvement in the form of direct investment, exploration financing, research and technology transfer.”

| NEWS

WEDNESDAY, APRIL 13, 2022

UKGCC partners GCB Bank Plc to promote local businesses By Ibrahim Mashud The UK- Ghana Chamber of Commerce with its core interest in promoting and establishing business relationships between the UK and Ghana has in collaboration with its platinum member, GCB Bank Plc encouraged and promoted local businesses in a book launch and networking session. The book launch project tagged ‘’Chasing Waterfalls’’ and championed by Destination Africa’s lead photographer, Steve Ababio and event organizer, Gina Arthur sorts to raise awareness about waterfalls in Ghana and provide information to guide visitors, easing their experience as tourists. According to the Executive Director of the UK-Ghana Chamber of Commerce, Ms. N. Adjoba Kyiamah, this project is in line with Ghana Government’s national priorities and ultimate goal to boost local tourism and actively encourage adventure travel within Ghana and into Ghana from the rest of the world and Steve does amazing nature photography. “Because of that, when he came to us with this idea that he wanted to query the waterfalls in Ghana, we thought that it would be a great opportunity to promote Ghana as a tourism destination and since GCB Bank is interested in the commercial

aspect of tourism, when we peached this idea to them, they were very happy to come on board as a platinum sponsor’’ she said. Steve revealed that the idea of “Chasing Waterfalls” was out of passion for the tourism industry and so we wanted show to the world some of the beautiful sceneries that are in Ghana. He encouraged that “it’s the private sector and it is people who are already in the sector doing what they can for the sector that need the support of government. So, if government want to see an exponential jump in the way things are happening, government should support people like us and give us the push that we need and help us do this thing and the sector will be sky rocking because we are doing it already out of passion’’. Meanwhile, the Executive Director, Wholesale and Investment Banking of GCB bank, Sam Aidoo has acknowledged that tourism is an important sector in Ghana’s economy and the successive governments have introduced various measures in a bit to ensure development and sustainability in the sector. It is equally important that the public and private sector also come on board to support these initiatives by government to unearth and fulfil the

full potential of our tourism sector in Ghana. He said that “the Chasing Waterfalls project could not have come at a more opportune time as we build back from the ravages of Covid-19 pandemic and give the sector the much-needed boost”. Only a few days ago, President Nana Addo Dankwa Akuffo Addo launched the destination Ghana in London. This is one of government’s initiative in the tourism sector with the objective to drive foreign direct investment and tourism traffic to Ghana. This initiative built from the successes of the year of return which was in 2017 and all the upsize of attracting fresh skill and capital to our beloved country and position Ghana on the map as a key tourism and investment destination. The waterfalls project sits strategically within the Ghana National Tourism strategic plan. The waterfalls project is one that will open the doors for many such projects in the future. It advances our local tourism, bridges the information gap and allows us as Ghanaians and foreigners to know more about what Ghana has to offer from the tourism point of view.

Mr. Sam Aidoo believes that the hard work done by Steve and Gina will further strengthen the core for improved patronage of tourism sites in Ghana. We must take advantage of this opportunity and henceforth I am glad to see that your next trip in Ghana would be to these waterfalls and so should everyone in this room going forward. “It is our ambition to be able to support our clients in that same sector to be able to drive the growth that we want to see” he disclosed. GCB Bank has strong social mandate and our corporate social responsibility targets various sectors within the economy. But my personal interest is in how we collectively positively impact communities in an environmentally sustainable way. He concluded that the GCB bank will continue to create the sustainable values for all our stakeholders. This conviction is one of the main reasons we chose to join this evening’s event as a platinum sponsor. The UKGCC is a delivery partner for the department of international trade at the British High Commission and has close to 200 member companies and more than half of them are Ghanaian businesses and not UK businesses.

Zenith Bank unveils enhanced Z-Mobile Ghana App Zenith Bank Ghana has introduced its mobile banking app, the Z-Mobile Ghana App, with new and enhanced features to offer customers and users an unforgettable banking experience. The Z-Mobile Ghana App has been improved with best-in-class biometric authentication (fingerprint and facial recognition) and other user-friendly, convenient, and secure features. The new app affords customers the opportunity to enjoy a custom dashboard, with an overview of their bank account(s), daily forex rates, initiation of cash withdrawals at any Zenith Bank ATM, without a card, find Zenith Bank branches around them, schedule fund transfers, purchase of airtime and data bundles and set travel notifications. In addition, the enhanced Z-Mobile Ghana App, enables non-Zenith customers to open an instant account. The Managing Director (MD) of Zenith Bank Ghana, Anthony Akindele Ogunranti, in an interview with the media in Accra, said the enhancement of the Z-Mobile Ghana App was testament to the bank’s vision to be a reference

point in the provision of prompt, flawless and innovative banking services in the Ghanaian banking industry. He said as a forward-thinking bank, Zenith continues to explore innovative ways of improving its product and service offerings, to create greater convenience for its customers. He said the bank’s forward-thinking approach has been evidenced by its continued investment in digital solutions and consistent upgrades to existing infrastructure, resulting in a well-rounded and robust suite of products that interact seamlessly with the Zenith Digital ecosystem. Indeed, he stated that the enhanced Z-Mobile Ghana app lends credence to the expression: the new bank branch was in the palm of customers. “In addition to the Z-Mobile Ghana App, the bank has provided several financial solutions that cater to the needs of its diverse

range of customers, most notably the Zenith Internet Banking platform (individuals and corporates), the bank’s USSD code for EazyBanking. “Fully cognizant of its responsibilities to safeguard customer assets, adhere to regulatory compliance requirements and preserve its business, the bank has invested heavily in information security, and continuously acquires all PCI DSS, ISO certifications and other security measures to protect and safeguard customer information and interests,” Mr Ogunranti added. Over the course of the last decade and a half, and more especially in the last five years, the narrative has changed, as banks sought to increase operational efficiency, coupled with the intensified financial inclusion efforts by the governments and a high demand for innovative means of payments by financial market participants.

The biggest catalyst for the rapid transition, however, has been the speedy uptick in mobile phone penetration globally and in Ghana, specifically. According to data from the National Communications Authority, (NCA) as at the second quarter of 2021, there were 22.7million smartphone users in Ghana which equates to 73 per cent of the population. The implication is that a vast number of people can now be served through digital services, positively impacting the growth of the digital economy. The local digital banking landscape has experienced tremendous change over the last half-decade, due to the aforementioned factors, from internet banking to the use of Unstructured Supplementary Service Data (USSD) codes, to mobile apps and other services.

| ENERGY

WEDNESDAY, APRIL 13, 2022

Why ‘dumsor’ will not return By Rodney Nkrumah-Boateng On Friday, my mischievous Energy Ministry Communications Unit colleagues Kwasi Obeng-Fosu, Kofi Abrefa and I braved a barrage of telephone calls from media houses seeking telephone interviews regarding an earlier press release on the Ministry’s reaction to an earlier claim by former Power Minister Dr Kwabena Donkor. Everyone wanted us on air for their midday news. Of course, we had braced ourselves for the assault, given the nature of the subject matter. The former Minister had stated that on February 15, 2022, the country’s peak demand for power was 3,343MW. That, he claimed, was against the backdrop of 3,527MW being available power, which he stated left us with only 180MW of power, which meant we were dangerously close to matching demand with available power. He also stated that demand for power increased annually between seven per cent and 15 per cent. From all of this, he predicted a return to ‘dumsor’ if urgent steps were not taken by the government because demand would soon outstrip available power. ‘Dumsor’ Of course, nobody wants a return to the dark days of ‘dumsor’, when power was rationed as if we were in a war situation, and even then, it was not entirely dependable. Small businesses tottered on the brink, and in some cases collapsed outright. No economy can take power reliability for granted and survive. Many office workers were not in a hurry to rush home after work and one had to call ahead to check if the lights were on before setting off. Sweating and sweltering in the night heat while trying to battle mosquitoes was the experience of many. Understandably, therefore, any pronouncements suggesting a return to those days would cause some public jitters, especially given its political ramifications and what it cost the previous government at the polls. Facts on generation The country’s total current generation capacity is 5358.50MW. Out of this, the government has added 421MW from the Amandi (204MW), Bui Solar (50MW) and VRA Kaleo (17MW) projects since coming into office. Current peak demand is 3,469MW, which was recorded on March 18, 2022. Indeed, in the Energy 2021

Outlook online last year, the Energy Commission held that the country would have 5,328.1MW capacity, with dependable capacity being 4879MW, but that due to planned engineering works, a total of 4,054MW would be available to meet the expected peak demand of 3,304MW in 2021. Dr Donkor’s figure of 3,527MW being available power this year cannot, therefore, be correct, unless he is suggesting that several of our thermal plants have been put out of action, thereby reducing available power to the figure he quoted. Of course, in a developing country like Ghana, demand for electricity is expected to grow, and to that extent, the former Minister is absolutely right to state that it is important to invest in power generation to enable

up 400MW is expected to be commissioned by 2024 Pwalugu Hydro and Solar Hybrid Plant: This is a 60MW hydroelectric plant in hybrid operation with a 50MWp Solar PV plant, which is expected to be completed and commissioned by 2025. The plant will be located in the Upper East Region. Projected demand in 2023, according to the Energy Commission’s 2021 Electricity Supply Plan, is expected to stand at 3,834MW, rising on an annual basis to 4,935MW in 2027. It is important to add to the generation capacity in a pragmatic, prudent manner and avoid capacity far outstripping projected demand for the simple reason that power generation is expensive. You do not just pile up capacity for the sake of it.

VRA GH¢1 billion, and in turn, VRA owed Nigeria Gas and the West African Pipeline Company $1.3bn. VRA had, therefore, shut down some of its plants because it simply could not afford to purchase fuel to run them. Under this government, gas flow is no longer uni-directional. The Takoradi-Tema Interconnection Project (TTIP) is ensuring the reverse flow of indigenous natural gas from the West to the East to power our turbines. What this means is that we no longer have the phenomenon of stranded gas in the west of the country. Again, the Tema LNG project, when completed soon, will allow the importation of LNG to support generation. Financially, the Cash Water Fall mechanism currently allows for the equitable distribution of funds

generation capacity to stay ahead of the demand curve. This is particularly so when it takes an average of five years for a conventional power plant project to evolve from conception through arrangements for funding detailed design, construction and commissioning to the commencement of commercial operation. In this respect, government has not been snoozing. Two major projects are on course. They are: Early Power: This is a 400MW power plant located at Tema, which will be constructed in two phases made up of 200MW each. Phase 1A of the first phase (147MW) commenced commissioning in 2021. The second part 1B of 53MW is also expected to come online this year. The final phase making

Fuel, finance factors It will be a huge mistake and probably rather simplistic to presume that increased capacity that outstrips demand in itself necessarily prevents a ‘dumsor’ situation. To keep the turbines working to generate the electricity, you need fuel, and you need to pay for it. This was a point the Vice President, Dr Bawumia, kept making when the New Patriotic Party (NPP) was in opposition, that ‘dumsor’ was not a generation capacity issue but rather a financial one. Indeed, as of December 2015, with ‘dumsor’ in full force, installed capacity was 2,923.5 MW, with peak demand standing at 2,200.0 MW, leaving us with excess capacity of 723.5MW. According to him, the state owed

realised from power sale. Actors in the value chain, therefore, are able to access funds to run, reducing inter-utility indebtedness. No return It is understandable, as some do, to insist that any localised power outage, even for a few hours, is ‘dumsor’. After all, if you have been bitten by snake before, you are wary of worms, but one cannot, by any stretch of the imagination, compare sporadic incidents (albeit inconvenient) with dumsor as we came to know it a few years ago. We do not have short memories. Under Energy Minister Dr Matthew Opoku Prempeh, we are not going back to ‘Dumsor’. You can safely bet on this. E-mail: rodboat@yahoo.com

| AFRICAN BUSINESS

WEDNESDAY, APRIL 13, 2022

AfDB to hold 2022 Annual Meetings from May 23-27 in Accra, Ghana

Ghana will host the African Development Bank Group’s 2022 Annual Meetings from 23-27 May in its capital, Accra. This year’s meetings mark a return to inperson sessions following virtual meetings over the last two years. They will be held in a hybrid format with participants present in Accra and online. The physical sessions, including statutory meetings of governors of the Bank and knowledge events, will take place at the Accra International Conference Centre. The theme for the 2022 meetings

is Achieving Climate Resilience and a Just Energy Transition for Africa. The meetings will offer Bank governors a forum to share the climate change and energy transition challenges that their countries face. They also present an opportunity to showcase policy responses to tackle these challenges. The governors, who represent the institution’s 54 African and 27 non-regional member countries, will hold a high-level dialogue with African Development Bank President Akinwumi A. Adesina

and his senior management team. The discussions will focus on how to boost funding for climate adaptation and related matters. Climate adaptation finance currently accounts for only 10% of global climate finance. Overall, only about 19% of total international adaptation finance is programmed in Africa, with the continent receiving only 3% of global climate finance flows. This year’s theme aligns with preparations for the United Nations’ global climate summit (COP27), scheduled for Sharm El

Sheikh, Egypt in November 2022. It will highlight Africa’s need for increased investment and other forms of financing to accelerate climate adaptation efforts. The 2022 African Development Bank Group Annual Meetings will be the 57th Annual Meeting of the Board of Governors of the Bank Group and the 48th Annual Meeting of the African Development Fund, the concessional arm of the Bank Group.

| FEATURE

WEDNESDAY, APRIL 13, 2022

Hidden Carbon Subsidies Will Destroy Us The latest report from the Intergovernmental Panel on Climate Change should terrify policymakers and ordinary people around the world. The IPCC warns that some disastrous climate outcomes are now likely to occur not in the distant future, but within the next 15 years, or even the next decade. But instead of waking up to the threat and responding quickly, policymakers remain focused on Russia’s horrific war against Ukraine and its immediate consequences. While this may be understandable, the Ukraine crisis has also exposed the excessively short-term policy orientation of Western governments. Many have quickly reneged on even the relatively meager and obviously inadequate climate pledges they made only a few months ago at the United Nations Climate Change Conference in Glasgow. The invasion of Ukraine and the subsequent Western-led sanctions against Russia triggered a dramatic increase in fuel prices, when the energy market was already heating up because of the economic recovery in the United States and Europe. Yet, instead of seeing this price spike as an opportunity to hasten the shift away from fossil fuels, governments in advanced economies have tried to reduce the pain by keeping domestic energy prices low, for short-term

political reasons. US President Joe Biden’s administration, after unsuccessfully imploring Saudi Arabia to increase oil production, has promised to release one million barrels a day from the US government’s strategic reserves for the next six months. In Europe, which has been hit much harder by the fallout from the war because of its heavy reliance on Russian natural gas, the talk is not just of more nuclear energy but also of reviving coal-based power. Coal is by far the “dirtiest” fossil fuel, and rich countries routinely pillory India and China for using it. Only those who previously swallowed Western governments’ insincere green rhetoric, rather than examining the reality, should be surprised by this turn of events. These governments have been heavily subsidizing their own fossil-fuel industries even as they exhorted much poorer countries to do more to reduce greenhouse-gas emissions. But the full extent of these subsidies has been hidden by the methods used to measure them. The standard way to measure government support for fossilfuel production or consumption is to look at direct budgetary transfers and subsidies, as well as tax breaks for the sector. Using this method, the OECD and the International Energy Agency

estimate that governments across 52 advanced and emerging economies – accounting for about 90% of global fossil-fuel energy supply – provided fossil-fuel subsidies worth an average of $555 billion per year from 2017 to 2019. This support declined to $345 billion in 2020, mainly because of the collapse in fuel prices and drop in consumption during the COVID-19 pandemic. But, even before the Ukraine war, there were fears that rebounding fuel prices could push up subsidies as the global economy recovered. Those fears were more than borne out. It turned out that the bleakest estimates massively understated the actual fossil-fuel subsidies that governments provide. In a recent study, the International Monetary Fund devised a more comprehensive measure that includes both explicit subsidies, or undercharging for supply costs, and implicit subsidies, or undercharging for environmental costs and foregone consumption taxes. The IMF estimated that global fossil-fuel subsidies in 2020 totaled $5.9 trillion, more than ten times the OECD-IEA estimate. That is not surprising: Implicit subsidies accounted for 92% of the total. Under both methodologies, India is a heavy subsidizer of

fossil fuels – although lowerincome countries can be partly excused, given the high cost of the green-energy transition. But other countries’ rankings change in interesting ways when implicit subsidies are considered. Russia was the largest provider of explicit fossil-fuel subsidies, but the US – with an estimated $662 billion of implicit subsidies in 2020 and nearly $800 billion in 2021 – extends significantly more subsidies overall. China provided the largest implicit subsidies in 2020, totaling an estimated $2.2 trillion. These important numbers highlight the extent to which government intervention is skewing prices, and therefore market incentives, in favor of fossil fuels, rather than against them. While governments were supporting the fossil-fuel industry to the tune of $5.9 trillion in 2020, the IPCC estimates that global climate finance from both public and private sources totaled only about $640 billion that year. Given this huge disparity, no one should be shocked at the fossil-fuel industry’s continued resilience. The world is rapidly running out of time to limit global warming to 1.5° Celsius and avert a climate catastrophe. But the global economic system and many governments appear unable to take the threat seriously.

| ENERGY

WEDNESDAY, APRIL 13, 2022

Social Capital By Kwadwo Acheampong

“A man who has friends must himself be friendly, but there is a friend who sticks closer than a brother”- Proverbs 18:24 (ESB). We all need help from time to time. What help we need may differ from one person to another or with different situations. No one is a complete island. ‘Fellowship’, ‘interdependence’, ‘community’, ‘brotherliness’ and many other words reflect. We rely on each other for comfort, satisfaction, joy, assurance, wisdom, insight and, of course, capital. Capital is the resource we use to develop or generate wealth or income. Wealth is usually financial but is not limited to that. Non-financial capital can help us generate non-financial wealth. Non-financial capital, the resources from our networks, links and relationships, are very important in business. Many companies readily employ a certain caliber of people who are deemed to be resourceful because of their networks or their ability to build networks that can lead to more business for their employers – that’s social capital. What it Means Today In financial terms, social capital basically comprises the value of social relationships and networks that complement the economic capital for economic growth of an organization. Today, many of us draw strength from our alumni associations- the Akoras, Amanfuos, Abrempongs, Santa Clausians, Old Boys, Old Girls and Adehyes. It is relatively easy to access certain opportunities

when we have a connection with the ones who can offer them. Though it is not necessarily the only thing that guarantees success in life; there are countless many who have made it without having to rely on ‘old boyism or girlism’. It is good to have a stepping stone, knowledge and direction. The relevance of social capital cannot be denied. Social capital helps society to work together and exist in harmony. Instead of disagreements, distrust and disunity, we hold on to mutual dependency and trust. Even in our disagreement on singular issues, we prefer to agree to disagree and let go because of a commonality we share. Social capital provides us with the platform to engage one another and develop even stronger ties. The ties police behaviour and foster positive characters among us. Without them, society would be disjointed and chaotic. Types of Social Capital There are three types of social capital: bonding, bridging and linking. They differ in the types of relationships they are based on but they can make or unmake us. No doubt, careful and purposeful attention needs to be paid to nurturing our social capital to ensure we get the best and give the best too. Bonding social capital refers to connections within a group which has high levels of commonality in demographic characteristics, attitudes and knowledge. This type is the strongest. It could be based on which English Premier

League or similar UEFA league team we root for, which church we worship with, where we work, which larger family we belong to or hometown we hail from. It could also be what hobbies we engage in during our pastime. Birds of the same feather flock together. Loosely, monkeys play by sizes, too. At a party thrown by a celebrity, it would be typical to find other celebrities. We would customarily not find teetotalers at a ‘blue kiosk’ joint. These connections and close networks provide members of the group with a sense of belonging, security and help in times of need. It is through these connections that people are willing to associate with and help each other out, as well as expand their network and gain ‘social capital’ among their peers. We are more likely to help someone and go out of our way for someone we have a bond with– as opposed to someone we know nothing about. Bridging social capital, on the other hand, is made of ties that are comparatively not strong, even among people with similar backgrounds, vocations or belief systems. The connection is made through someone in a closer tie. That ‘someone’ therefore serve as a bridge in our relationship. A good example is a friend of a friend or relation. We usually relate to them indirectly. Bridging, therefore, brings two or more people together who would otherwise not connect– even if they may be from similar groups and have the same interests. The relevance of bridging is that it helps people in a similar group who do not relate well to do so through an intermediary. In secondary school, especially in the boarding house system, we formed bonds with our classmates and housemates. The ties we formed continue even after school and even when geography distances us. Thanks to social media platforms like Yahoo Groups (earlier), LinkedIn, Facebook and WhatsApp groups, we have rekindled and strengthened many of these bonds. There are friends from way back in Class One we may have reestablished contact with and even met with over dinner. We meet to talk about all the years and experiences in between, introducing families we have made and sometimes

discovering that our bridges where, of themselves, connected somehow. Some have blossomed into thriving business ventures. Some have led to the pooling of resources to assist alma maters and colleagues who may have fallen into some unfortunate situation. Linking social capital is similar, in a way, to bridging social capital. There is a ‘link’ between two people or groups of people. The difference, here, is that the ‘link’ connects people of different groups, unlike a ‘bridge’ who connects people of similar groups. Bridging occurs horizontally, i.e. between people of a similar socioeconomic hierarchy. By contrast, linking occurs vertically– between different socioeconomic groups. An example would be a junior student who is connected to a senior student or group through her cousin who is a senior. She would have access to past questions and notes used by those ahead of her to help with her studying. Likewise, a staunch Real Madrid fan with ties to Barca through a good friend. He connects well with Madrid fans but has a connection with a number of Barca fans with whom he could probably lodge with when he visits Barcelona. Even more clearly distinct is a chance meeting and forming of friendship ties between a lecturer and farm labourer. This could lead to the lecturer bonding with the labourer’s family and friends, engaging in a farming venture and the labourer considering continuation of formal education. Through linking, they penetrate the gap between them and foster new contacts and ties in between ‘social boundaries’ which serves each of them well. The Avenues Where do we network and build social capital which is beneficial? Myriads of situations offer these. We all belong to one group or the other. We all have interests, no matter how varied or subdued. We have aspirations which lead us to bond with people of similar persuasion in order to share and to receive. In Ghana, religious pursuit is a leading reason for us to bond. People who meet often at the mosque on Fridays for prayers and those who congregate at churches to worship bond together on Sundays. Aside religious interests, they may share business openings

| FEATURE

WEDNESDAY, APRIL 13, 2022

continued from page 9

to help each other. Someone may present you with opportunities that may not be available to the general public, just because he or she associates with you at church or the mosque. Sports bring many people together and binds fans strongly. We are ardent adherents to the game of football, mostly, in Ghana. Described as the passion of the nation, many of us do not toy with our support for one team or the other and it has a bearing on our emotions and countenance. Those who support our team are ‘brothers’ and ‘sisters’. We bend backwards to accommodate

them. Those who are supporters of rival teams are ‘against’ and we sometimes view their intentions with suspicion. Another thing that gets us to rally around, almost like a religion, is politics. We hold on to our political views and groupings with fervour. It is hard to dissuade us from our entrenched positions when it relates to our support for a particular party. The followers of one party are ready to help each other. This often leads, regrettably, to the notion of nepotism and cronyism (‘family and friends’, as we better know it). Unfortunately, our disdain

for opposing views too often gets unhealthy and betrays our ability to be tolerant. Even still, many people have found bridges and links through siblings, spouses and close relatives. These links and bridges often help to dissipate tensions, distrust and simmering agitations. Added Benefits Our professional or knowledgebased unions provide platforms for similar bonding. We build social capital through relationships forged in such groupings. We share knowledge to improve our lot. Often, we find jobs or find suitable candidates for job openings in such groupings. Over a number of repeated purchases of fried rice or chicken wings or pizza, we may develop a bond with the delivery guy. This could lead to more tips, knowledge of special offers coming up, a problem with the product or service or recommendations to some of those in our network for even more purchases. Similarly, a landowner whose garden we take care of could introduce us to even more landowners, thereby expanding our gardening business. The type of wealth social capital affords is potentially huge. Social capital can do many things when money fails, or even more than money can do. Aside financial benefits, there are many intangibles, non-financial gains to

be made through our networks. Let’s rev up our social capital!

ABOUT THE AUTHOR The Head of OctaneDC Research, Kwadwo Acheampong, has over years garnered experience in fund management and administration, portfolio management, management consulting, operations management and process improvement. For the love of wealth creation and financial freedom for his readers, he writes. Through his writings Kwadwo has discovered his love and knack to simplify complex theories spicing them with everyday life experiences for the benefit of all. He was recently the resource person of Metro TV’s business show Bottomline, where he shared thoughts on Goal Setting for 2022 from the perspective of financial planning. Feel free to send him your feedback on his article. Kwadwo at kwadwo.acheampong@octanedc. com or call him on +233 244 563 530

AfCFTA and what it means for e-commerce The current nature of international relations, which is marked by a surge in diverse (economic, political and sociocultural) crises, demanding the mobilization of joint capacities of states and non-state actors (enterprises and individuals), to find a durable solution which would help to improve the living standard in African countries marks the founding reasons of the AfCFTA. In line with agenda 2063 of the African Union which seeks to build the “Africa we want”, that is promoting intraregional connectivity between capital cities by creating a single unified market, borders and air transportation network. A conglomerate of varied states and industries which will bring about a considerable shift in poverty alleviation, influx in

human movement via tourism, a system that will work for women, thus promoting gender equality and women empowerment. The AfCFTA is Africa’s blueprint and master plan for transforming Africa into the global powerhouse of the future. But what does that really mean for Africans and businesses most especially e-commerce like Jumia? Prior to this initiative and till yet, Africa counts over fourteen economic blocs with eight recognized regional communities by the African Union. These include but not limited to: the East African Community (EAC), Economic Community of West African States (ECOWAS), and; the Southern African Development Community (SADC) to name a few. >> continued on page 11

Image: Google.com

Many foreign to this concept will think that the AfCFTA will mean less safety for their country, borders and markets. However, the existence of these regional economic blocs may be seen by commentators as a hindrance to the development process of the African continent in its entirety on a continental level. In reality, with these regional blocs, it is extremely difficult for sellers or enterprises of the East African Community (EAC) for instance in Kenya to easily trade with nations belonging to ECOWAS in Nigeria for instance. In reality, these regional blocs have different trading laws and agreements, using all different currencies with different levels of development and GNPs. The priority of these economic blocs is to ensure a continuous trade among its members, promote diplomatic ties and security aspects amongst others. Nevertheless, this “security search” hinders the potential economic growth of the continent. A perfect example is the case of e-commerce services. Under normal circumstances, e-commerce have delivery capacities of 24hrs to 3 business days on national territories where they operate depending on their operation sites and land surface of the given country. This means that one can expect their goods in a relatively short period of time for a much cheaper price compared to someone found in a neighboring country and worst still one found in a different regional economic community. Some challenges: If Jumia, the leading e-commerce platform, for example operates in Kenya and an online customer from Nigeria wishes to make transactions from their platform, they will generally receive their purchase after a relatively longer period and with expensive constraint or maybe never (if there is no air connection) than if they were in Kenya. This difference exists as a result of economic blockages put in place by regional economic communities. They include custom duties, tax, bureaucracy and just to cite a few. Since the cost of custom duties cannot be incurred by the producer, these costs are pushed down to the final consumer. In nations where VAT (value added tax) exists, consumers can see themselves purchasing a good for 1.7 times its original price. This is especially true for the seventeen African States using the OHADA (Organization for the harmonization of Business Law

| FEATURE

WEDNESDAY, APRIL 13, 2022

in Africa) accounting system. This generally has devastating effects on consumers who spend more in economies where they earn much less, and also to companies who find themselves shutting down due to lots of bureaucracy to follow and high cost of existence in some regional blocs.

Image: Google.com The Africa Regional Integration index (ARII) in partnership with the African Union has a composite index that assesses how countries and regional economic communities are making progress towards their integration agendas based on sixteen indicators, grouped into five dimensions. The ARII also measures the state of regional integration of the continent as a whole with finality to make Africa more connected for businesses and persons. The five dimensions are in respect to free movement of people; infrastructure integration; macroeconomic integration; productive integration, and; trade integration. They are all pivotal for the success of e-commerce in Africa in particular and for development in general. Free movement means people will move faster and more efficiently thus promoting tourism and interculturalism. Infrastructure integration means more route connectivity between countries (roads, railways and ports) and also less custom duties and bureaucracy. Macroeconomic integration takes into consideration the stabilization of economies, currencies and international conventions guiding the laws of trade. Productive integration supposes quality and quantity in terms of always equalizing demand and supply with respect to each country’s desires. Lastly, trade integration means the elimination of taxes, embargoes, and the eventual increase in government subsidies to adapt to international trends and requirements. Looking Ahead Experts agree that regional integration expands markets and trade, enhances cooperation, mitigates risk, and fosters

sociocultural cooperation and regional stability. Regional integration has also been shown to maximize the benefits of globalization while countering its negative effects, and to stimulate development in least-developed countries by improving productive capacity and encouraging investments in those pieces of infrastruc ture that hold the most economic potential. This also means an opportunity for e-commerce to leverage profit margins and improve supply chain management on the continent. It is also an opportunity to foster African industries, making African produce more available and accessible to all. Moving further, this continental agreement coupled with the internet penetration of the continent will exponentially propel e-commerce, as more Africans are beginning to cherish online shopping and home delivery services. According to the UN International Telecommunication Union’s (ITU) study ‘Connecting Humanity ’, this is a representative market of over 700 million persons connected to the internet. A joint African market will also make Africa the largest free continental free trade Area of the world, with an investment of about $97 Billion of internet infrastructure. The case made is that Africa will be a thriving market for e-commerce as well as e-commerce companies who will have to make available the necessary infrastructure for business. Historically, working for the establishment of a common sub-regional market zone was necessary for the encounter of people located in the same regions. It was also important for the reinvention of social cohesion that was traditionally observed in a cultural cohabitation, local or traditional rediscovery and peaceful coexistence in subregional parts of the continent. It is of pivotal necessity that states accelerate the implementation of the AfCFTA for a sustainable Africa, which is peaceful and which is economically viable and competitive on the international arena. E-Commerce as a solution to integration: The argument made is that the AfCFTA offers the solution for an integrated African market by way of trade through economic regions

and countries. This inter-trading through such platforms fosters countries and economic regions to have common regulatory frameworks, policies and laws which will speak to a coherent African market. It is also true that digitalisation and the AfCFTA will offer new and existing SMEs the opportunity to not only expand nationally but also throughout the continent beyond existing digital divides as a result of existing laws and regulations. Legislators in each country therefore have a responsibility to align to the AfCFTA so as to bridge these digital divides.

Image: Google.com Siyanda Makhubo is the Group Public Relations and Communications Manager for Jumia since December 2021. He holds a Bachelor’s Degree in Economics, Law and Sociology, an Honours Degree in Marketing and Communications, a Post Graduate Diploma in Business Administration and is currently studying for an MBA with the University of the Witswatersrand. He has more than seven years of professional experience in Communication, Risk and Reputation, Crisis Communication and PR Advocacy both in the Public and Private sectors. His interests lie in the subject of utilizing the PR and Communications system for social justice.

| NEWS

WEDNESDAY, APRIL 13, 2022

CKROWD announces appointment of renowned entertainment and music personalities to advisory board Ckrowd, Africa’s most preferred and premium content streaming platform, has today announced the appointment of celebrated music & entertainment lawyer, Akinyemi Ayinoluwa, and Music Licensing Consultant, Elle Erinle to the organisation Board of Advisors, effective April 7, 2022. Ms. Erinle and Mr Ayinoluwa will both serve the board and operate in the function of venture partners. “We are pleased to welcome Elle and Akinyemi to the always expanding Ckrowd family and our Board,” said Kayode Adebayo, chief executive officer of Ckrowd. “Their deep experience in hightechnology, music, entertainment and intellectual property rights across pan-African, Diasporan and global entertainment business with strong regulatory oversight will be invaluable to Ckrowd as we grow our business and pursue our mission to serve content creators, as they express themselves and monetise their contents.” The African and Diasporan content creation industry has evolved into a globally recognised one, however, Ckrowd understand that the main subjects of the creative industries, the creators, must also benefit globally and locally. Thus, these appointments will contribute to provide greater insight on how creators can effectively copyright and monetise their creations. Elle Erinle Elle Erinle is a music professional with a focus on Music licensing with PRS for Music. She is currently a lecturer in music copyright at Notting Hill Academy of Music - founded by Relentless Records and founder of Laude London- where she provides label services including sync licensing, PR and A&R. She also leads the music publishing team and enthusiastic about educating artists royalties branding and how to monetise theirs sounds beyond streams. Her clients include many top Nigerian Afrobeats labels and artists. Elle commented:” I am delighted to share my knowledge on music management, royalties and administration. By joining Ckrowd, I will be able to positively impact Africa and the Diaspora music and entertainment industry from a grassroot level. I am looking forward to educating creators and artists on royalties, branding and how to effectively

monetise their sound beyond streams. I also want to support them to understand available pathways to help them carve a sustainable and long-lived career.” Akinyemi Ayinoluwa Akinyemi Ayinoluwa is a Partner and co-founder at HighTower Solicitors and Advocates. His music law practice focuses on the representation of recording artists, songwriters, record producers, record labels, investors in music, and talent managers. He is often recommended as a lawyer who breathes, drinks and eats music. Akinyemi’s past legal experience includes Associate at Wemimo Ogunde & Co and Awokoya & Co. Prior to qualifying as a lawyer, he was a songwriter, recording artist, composer and performer; he was the lead singer of the defunct 100 degrees boy band. He has authored numerous articles in the field of music law,

estate planning, commercial transactions, and regularly gets invited to deliver speeches and courses about these subjects. Akinyemi also functions in the capacity of business manager, as well as their lawyer, when working on a number of clients. In recent years, Akinyemi has built up a formidable roster of hit making producer clients from Afrobeats: Masterkraft, Blaq Jerzee, Northboi, Rexxie, Magicsticks, Jaypizzle, Andre Vibes, Larry Lanes, Tuzi, Niphkeys, and many others. He prides himself in helping clients understand the value of their intellectual property rights and to be mindful of the exploitation that is rampant in the industry., Akinyemi’s zeal and passion for education has also caused him to design educational resources for record producers and beatmakers. There is a first instalment called the ‘Secure the bag program for record producers

and beatmakers’. He said: “I am excited to be associated with a well strategically positioned organisation such as Ckrowd, whose vision is to champion the course of content creators on the African continent and globally. I believe that they will usher-in a new dispensation that adequately protects and compensates creators for their creation and the community they have built.” Over the last months, Ckrowd has seen dramatic organic growth and has also expanded its existing technology platforms with software updates and leveraging on the knowledge of its advisory board members. These implementations demonstrate the company’s commitment to building best-in-class, proprietary technology and content creation solutions that will benefits creators glocally.

| COMMENT/ANALYSIS

WEDNESDAY, APRIL 13, 2022

Encouraging compliance with Fiscal Electronic Device. Is Ghana ready for implementation? As part of its revenue mobilisation drive, the Ghana Revenue Authority (“GRA” or “Authority”) has sought to operationalise aspects of the tax laws that have not been implemented. For example, from 1 April 2022, the GRA is requiring all non-resident suppliers of electronic commerce to register with the Authority and start complying with the provisions of the Value Added Tax Act, 2013 (Act 870) as amended (“VAT Act”). Similar plans have been outlined for the gaming and betting industry to comply with the VAT Act. Of particular interest to this article, however, is the operationalisation of the Taxation (Use of Fiscal Electronic Device) Act, 2018 (Act 966), passed by Parliament and assented to by the President in May 2018, roughly four years ago. Act 966 introduced the use of an approved Fiscal Electronic Device (“FED”), a tool designed for use by specified VATregistered businesses to improve tax compliance and minimise tax fraud. Some of the FEDs are similar to regular cash registers that several businesses use to print receipts and invoices, however, the FED comes with a fiscal memory. The idea behind implementation of the FED system in Ghana (as seen in other countries), is that once fully operational, the GRA would be able to track and verify sales transactions, account for any resultant VAT on the transaction in real time, and automatically create monthly VAT returns which can be compared with what is filed by taxpayers so that any variances are investigated. This would beg the question as to why the delay in operationalising Act 966 considering the benefits to both the GRA and taxpayers. What has GRA promised to do? The GRA, as far back as in August 2018, expressed intention of rolling out the FED system by early 2019, with the first group of taxpayers being those registered with the Large Taxpayer Office. However, as of date, based on publicly available information, there is no single taxpayer using the FED system. Act 966 gives GRA the role of ensuring the ease of adoption of the FEDs, such as issuing a minimum of two (2) and a maximum of five (5) FEDs to taxpayers at no cost. Any extra device would be at the expense of the taxpayer.

Additionally, for a seamless interaction and exchange of data between the front end at the taxpayers’ premises and the backend sitting with the GRA, the GRA is to have agreements with licensed telecommunication operators to oversee and provide the required support. Such arrangements will alert the Authority of sales and transactions made by the taxpayers and retain records of sales, corresponding output VAT applicable and any input VAT deduction made. Act 966 gives the taxpayer up to one hour to report any FED that malfunctions via free toll lines, WhatsApp lines, text lines and email addresses to be provided by GRA for this purpose. Any fraudulent activities such as tampering with the FED will generate an alert to the Authority where relevant punitive measures will be taken. What can GRA learn from the pioneers of the FED systems across the continent? Ghana seeks to join other African countries that track VAT charged electronically, such as Ethiopia, Kenya, Uganda, Tanzania, and Malawi. To the East of the continent, Kenya implemented the Electronic Tax Register (“ETR”) in 2005, however this is a manual system of reporting. In 2020, the Value Added Tax (Electronic Tax Invoice) Regulations, 2020 implemented the electronic tax invoice. The electronic tax invoice would be administered by the Tax Invoice Management System (“TIMS”), which is an upgrade of the current ETR regime. TIMS will facilitate electronic tax invoice management through standardisation, validation and transmission of invoices to Kenya Revenue Authority (“KRA”) on a real time or near real time basis. The KRA has provided a list of the approved manufacturers and suppliers of the ETR machines on its website. Some of the benefits taxpayers will derive from adoption of TIMS includes fostering a fair business environment, pre-filled VAT return, simplified return filing, auto activation of the ETR, faster processing of VAT refunds and non-intrusive verification of tax matters. TIMS has a go-live date of 1 August 2022. Uganda successfully implemented the Electronic Fiscal Receipting and Invoicing System

(“EFRIS”) in July 2020. EFRIS, also an automated compliance system initiated by the Uganda Revenue Authority (“URA”), manages the issuance and centralised tracking of all invoices and receipts by business taxpayers in Uganda. With the apparent simplification of compliance, another eminent benefit has been the ease of verifying purchases for registered taxpayers ahead of deducting input VAT. In order to facilitate efficient adoption of the EFRIS system, the URA conducted training on the registration, configuration and implementation of the system for taxpayers. It is noteworthy that Uganda is leading the pack with real time reporting. In Zambia, all taxable persons are required to issue invoices on their taxable supplies using an Electronic Fiscal Device (EFD). Taxpayers who fail to use the EFD or obtain approval from the CommissionerGeneral of the Zambia Revenue Authority (“ZRA”) to use another document, device or equipment, are liable to monetary penalties and imprisonment depending on the degree of offence. The implementation of an electronic real time tax reporting is an initiative that brings with it immense benefits for both taxpayers and the revenue authority. In the same regard, anticipated challenges to users of the FED such as costly electronic tax register devices, printed fiscal tax invoices being faint, thirdparty network supporting real time communication crashing and a lack of taxpayer sensitization and training on the registration, configuration and use of the electronic tax reporting system, should be addressed early on. Four years can be considered enough time for the GRA to implement the FED. In the alternative, the GRA can ask Parliament to repeal the law if it holds the view that the FED is no longer necessary in its revenue mobilisation efforts. We hope to see systems set by the GRA to curb downtime from third-party network operators, an issuance of a list of the valid manufacturers and suppliers of the FED devices, regular training on registration and configuration of the FED and administrative guidelines to guide taxpayers. The intention by the Government to implement Act 966 is a move that is keenly

being monitored by different stakeholders. Operationalisation of the law will bring about certainty around fiscal planning not only for the Government but also for taxpayers making plans to configure their operations with minimal to zero disruption on their operations. The success stories reported in different parts of the continent are to be envied and the GRA should hastily go live on the FED systems and replicate the expected benefits.

Author’s profile Abeku Gyan-Quansah is a Partner in PwC Ghana and the PwC West Africa Indirect Tax Leader. He is a regular speaker on tax matters and the PwC Business School Leader in Ghana. You can contact me by sending an email to Abeku Gyan-Quansah (abeku.g yan-quansah@pwc. com) and copy in Lorna Onduu (lorna.o.onduu@pwc.com) to obtain a quick response.

| TECH

WEDNESDAY, APRIL 13, 2022

Academic City adjudged EdTech Institution of the Year

Academic City University College, Ghana’s premium Science, Technology, Engineering, Arts, and Mathematics (STEAM) university, has been named Outstanding EdTech Institution of the Year at the inaugural Africa Technovate Awards. The Africa Technovate Awards celebrate and motivate technology businesses who are pushing solutions to help Africa

remain competitive, particularly in the era of AfCFTA. Academic City was recognized for its efforts to use technology, robotics, and artificial intelligence (AI) to deliver globally competitive academic programs while also digitizing learning and processing via an e-library, digital identification for students and staff, performance analytics, digital classrooms, and teacher

digital up skilling. Since inception, Academic City has demonstrated its commitment to changing the narrative of higher education in Africa and providing the best education attainable anywhere in the world. The university offers elite undergraduate degree programmes in Engineering, Information Technology, Business Administration and Communication Arts. These programmes are strategically designed taking into consideration world class STEAM education to develop students to become more practical, hands-on and productive. Commenting on the award, Mr. Cyril Quansah-Quainoo, Public Relations Manager of Academic City said that it demonstrates that Academic City’s work over the past years in reshaping the narrative of higher education in Ghana and Africa is being recognized by stakeholders. “To stay up with the fast

changing times, Academic City is continually looking for new and inventive ways of teaching and learning in order to innovate and renew our curriculum. We believe that the work of the future will be different from the work of today, thus we seek to include new technology into our teaching method in order to better prepare students for the future,” he stressed. Mr. Quansah-Quainoo stated that Academic City, as a progressive university, just introduced a degree in Artificial Intelligence and Robotics Engineering, making it the first in Africa. This, he explained, was part of the university’s commitment to enhancing technology and innovation education in Africa. Other new programmes that have recently been introduced include the BSc in Biomedical Engineering and BBA in Entrepreneurship.

Hollard signs MoU with UCC

An insurance firm, Hollard Ghana has signed a memorandum of understanding (MOU) with the University of Cape Coast (UCC) to prepare students for the job market.

The agreement will enable UCC students’ post-academic success as part of its Hollard X Academia programme. The comprehensive Hollard X Academia initiative will enable a better future for students through; Hollard’s Streetwise Finance, mentoring, engagement, and resource sharing programmes aimed at providing back to the society. The partnership will last for three years, after which it will be re-assessed for impact and continuation. At a brief ceremony on campus, the Managing Director (MD) of Hollard Insurance, Daniel Boi Addo, said the partnership

was part of the insurance firm’s corporate social investment effort. “It is our pleasure to embark on this relationship with the fondly named, University of Competitive Choice. UCC is the third public university added to our partner schools under our Hollard x Academia initiative. We look forward to the impact working with the school will enable for its students. “Being an entrepreneurialminded business, we at Hollard believe in enabling our community to create better futures. To this end, Hollard X Academia has five advanced modules, including the Hollard Prize, Hollard Scholar Program, Hollard Streetwise Finance Engagement, Hollard Corporate Experience, and annual Thought leadership events. Through this partnership, we are confident UCC students will be well-equipped for

the future of work,” he added. Mr Addo said the country’s favourite insurance group was proud to begin the partnership with UCC by supporting innovation. “We’re kickstarting our partnership by supporting UCC foster innovation and design thinking amongst students. Working with the School of Entrepreneurship and University management, we’ve been amazed at their effort to make education functional and future-ready. “Therefore, we needed to sponsor a space where students and their mentors could brainstorm and apply innovative thinking. The outdooring of the Hollard Mentorship Space is

a testament to our promise to support UCC’s exceptional and sustainable growth,” he said. The Vice-Chancellor of UCC, Prof Johnson Nyarko Boampong said: “We are delighted to be part of this partnership. We believe that this MOU is not just a one-off. “We know our students will benefit from the initiative starting with the Hollard Mentoring Space at our new Design Thinking and Innovation Hub. “We are confident that through the Hollard x Academia initiative, our students will receive the right corporate guidance to become efficient corporate and entrepreneurial leaders in the future.”

WEDNESDAY, APRIL 13, 2022

| ADVERT

| FEATURE

WEDNESDAY, APRIL 13, 2022

| FEATURE

WEDNESDAY, APRIL 13, 2022

The incredible bouncing Ruble BY SERGEI GURIEV

After plummeting in value following Russia’s invasion of Ukraine, the ruble has clawed its way back to its pre-war levels. But this should be of little comfort to the Kremlin, because the factors that drove the ruble’s rebound augur additional problems for Russia’s economic performance. The West has exhibited near-unprecedented unity and resolve in its response to Russian President Vladimir Putin’s war on Ukraine. Within just three days of the invasion, Western governments had frozen much of the Russian central bank’s foreign-currency reserves within their respective jurisdictions. This move triggered financial panic within Russia – and spurred a powerful policy response. On

with the growth rate of the official consumer price index rising to 2% per week (181% in annual terms) in the first three weeks of the war, before slowing to 1% per week (68% per year). The ruble has since returned to the 80-per-dollar range. But its appreciation is not necessarily real. If a currency’s trade is severely restricted, its exchange rate does not reflect its market value. During the Soviet era, the Communist Party’s flagship newspaper, Pravda, consistently reported that the ruble’s official exchange rate was 0.6 per dollar, but nobody viewed that as a proxy for the currency’s real strength. To be sure, there are tangible signs that the pressure on the ruble is subsiding. Late last week,

exchange rate’s recovery is merely a reflection of unprecedented restrictions on imports and higher oil and gas prices. Western governments have imposed severe sanctions on technology exports to Russia, which have been reinforced by a private-sector boycott, with more than 600 Western companies having withdrawn from Russia. Households and enterprises have lost access to many imported consumer goods and intermediate inputs at home, while airspace closures and boycotts by Airbus, Boeing, and major insurers and leasing companies have made it all but impossible for Russians to travel to the West. Because these restrictions have substantially reduced

that essentially outlaw Russia’s use of dollars even to pay off its dollar-denominated debt. These measures have already resulted in a technical sovereign default. The second factor driving the ruble’s appreciation is the high price of oil, which has returned to its 2014 levels. Back then, the ruble was trading at 38 per dollar, or 52 per dollar in today’s prices (after adjusting for inflation in both Russia and the United States). Today’s oil prices thus imply the possibility of further ruble appreciation, save for the fact that geopolitical risk and capital flight have made the ruble weaker than it otherwise might have been. Today’s exchange rate indicates that Russia’s balance of payments is strongly supported by current

February 28, the central bank imposed strict capital controls, tightened currency-trading restrictions, and hiked its key policy rate from 9.5% to 20%. Russia’s government then ordered all Russian exporters to repatriate and exchange 80% of their export revenues for rubles, and the central bank introduced a 30% commission (later reduced to 12%) on foreigncurrency purchases. Various categories of buyers were banned from purchasing US dollars, and holders of foreign-currencydenominated bank deposits faced major constraints withdrawing their savings. Despite this swift policy response, however, the ruble’s official exchange rate moved from 81 rubles per dollar before the war to 139 per dollar on March 9 (though the black-market rate reportedly was much higher). Inflation accelerated substantially,

the central bank removed the 12% fee for purchasing dollars, relaxed certain limitations for currency-denominated deposits, and – most importantly – cut its policy rate from 20% to 17%, while signaling further easing to come. These actions speak louder than any official statements about the strength of the Russian economy. Even so, growth projections for Russia this year remain bleak. According to the central bank, GDP will decline by 8% this year; before the war, it was expected to increase by 2.4%. The Institute of International Finance predicts a 15% fall in GDP, while the European Bank for Reconstruction and Development (EBRD) and most international investment banks forecast a 10% recession. The head of Russia’s Accounts Chamber, Alexei Kudrin, agrees. The ruble’s recent appreciation does not invalidate these pessimistic views, because the

Russian demand for imports, note economists Oleg Itskhoki and Dmitry Mukhin, they have also lowered demand for dollars (which are needed to purchase such goods), thereby driving the ruble’s exchange rate upward. But that is not good news for Russia’s economy, which is bound to slow down. Just as the COVID-19 pandemic forced firms around the world to reckon with their dependence on global supply chains, Putin’s war has shown Russian enterprises that they cannot function without imports. Even those that source their supplies domestically have come to realize that their suppliers depend on imports from the West. That is why Russia’s automotive industry has ground to a halt, with sales in March falling to a third of their level in March 2021. Moreover, the demand for dollars has been further reduced by financial sanctions

oil prices, which implies that fiscal performance is holding up well, too. While the early sanctions froze much of Putin’s stock of cash, high oil prices have ensured substantial daily inflows. But this, too, could become a problem for Putin. As EU High Representative for Foreign Affairs and Security Policy Josep Borrell recently pointed out, the EU has sent €35 billion ($38.1 billion) to Russia since the start of the war, but just €1 billion in aid to Ukraine. This appalling disparity has not been lost on European leaders, as the growing support for an oil and gas embargo attests. In fact, Europeans are already speaking about the embargo not in terms of “if ” but rather in terms of “when.” An EU-wide decision to stop importing Russian oil and gas will have catastrophic consequences for Russia’s federal budget and make the ruble’s recent recovery unsustainable.

| MARKET REVIEW

WEDNESDAY, APRIL 13, 2022

WEEKLY MARKET REVIEW FOR WEEK ENDING - APRIL 8, 2022 MACROECONOMIC INDICATORS Q3, 2021 GDP Growth

6.6%

Average GDP Growth for 2021

5.3%

2022 Projected GDP Growth

5.8%

BoG Policy Rate

17.0%

Weekly Interbank Interest Rate

16.38%

Inflation for February, 2022

15.7%

End Period Inflation Target – 2022

8.0%

Budget Deficit (% GDP) – Dec, 2021

9.7%

2022 Budget Deficit Target (%GDP)

7.4%

Public Debt (billion GH¢) – Dec, 2021

351.8

Debt to GDP Ratio – Dec, 2021

80.1%

STOCK MARKET REVIEW The Ghana Stock Exchange weakened for the week on the back of price declines by 3 counters. The GSE Composite Index (GSE CI) lost 49.20 points (-1.79%) to close at 2,693.65 points, reflecting year-to-date (YTD) loss of 3.43%. The GSE Financial Stocks Index (GSE FI) however, gained 39.22 points (+1.80%) to close at 2,214.18 points, reflecting year-to-date (YTD) gain of 2.90%. Market capitalization declined marginally by 0.03% to close the week at GH¢64,011.45 million, from GH¢64,029.79 million at the close of the previous week. This reflects YTD decrease of 0.75%. Trading activity recorded a total of 3,626,127 shares valued at GH¢3,602,157 changing hands, compared with 83,028,224 shares, valued at GH¢88,889,722.36 in the preceding week. MTN dominated both volume and value of trades for the week, accounting for 57.84% and 58.50% of volume and value of shares traded respectively . The market ended the week with 3 advancers and 3 decliners as indicated on the table below.

THE CURRENCY MARKET The Cedi recorded no change against the USD for the week. It remained flat at GH¢7.1120/$ reflecting w/w and YTD depreciations of 0.00% and 15.55% respectively. This compares with YTD appreciation of 0.54% a year ago. The Cedi however advanced against the GBP for the week. It traded at GH¢9.2663/£, compared with GH¢9.3278/£ at week open, reflecting w/w appreciation and YTD depreciation of 0.66% and 12.29% respectively. This compares with YTD depreciation of 0.10% a year ago. The Cedi also strengthened against the Euro for the week. It traded at GH¢7.7338/€, compared with GH¢7.8217/€ at week open, reflecting w/w appreciation and YTD depreciation of 1.14% and 11.71% respectively. This compares with YTD appreciation of 3.74% a year ago. The Cedi again appreciated against the Canadian Dollar for the week. It opened at GH¢5.7019/C$ but closed at GH¢5.6526/C$, reflecting w/w appreciation and YTD depreciation of 0.87% and 16.12% respectively. This compares with YTD depreciation of 0.75% a year ago.

WEDNESDAY, APRIL 13, 2022

GOVERNMENT SECURITIES MARKET Government raised a sum of GH¢1,155.11 million for the week across the 91-Day, 182-Day , 364 Day Treasury bills as well as the 3 Year Bond. This compared with GH¢463.65 million raised in the previous week. The 91-Day Bill settled at 15.74% p.a., from 14.85% p.a. last week whilst the 182-Day Bill settled at 15.93% p.a., from 15.46% p.a. last week. The 364-Day Treasury Bill on the other hand settled at 18.28% p.a., from 17.11% p.a. recorded previously. The 3-Year Bond meanwhile settled at 20.85% p.a., up from 20.50% previously. The table and graph below highlight primary market yields at close of the week.

| MARKET REVIEW

COMMODITY MARKET

BUSINESS TERM OF THE WEEK

Crude Oil prices settled lower on Friday after consuming countries agreed to release a total of 240 million barrels of oil from emergency stocks. Brent futures traded at US$102.78 a barrel on Friday, compared to US$107.53 at week open. This reflects w/w loss and YTD gain of 4.42% and 34.14% respectively. Gold prices rose as concerns over rising costs and the Ukraine crisis bolstered its appeal as an inflation hedge and a safe haven, but the U.S. Federal Reserve’s aggressive policy stance limited gains. Gold settled at US$1,945.60 from US$1,929.20 last week, reflecting w/w and YTD appreciations of 0.85% and 6.40% respectively. Prices of Cocoa advanced for the week. The commodity traded at US$2,620.00 per tonne on Friday, from US$2,562.00 last week, reflecting w/w and YTD appreciations of 2.26% and 3.97% respectively.

Foreign Exchange Reserves: Foreign exchange reserves are assets held on reserve by a central bank in foreign currencies. These reserves are used to back liabilities and influence monetary policy. It includes any foreign money held by a central bank, such as the U.S. Federal Reserve Bank.

INTERNTIONAL COMMODITIES PRICES

Source: https://www.investopedia.com/terms/f/ foreign-exchange-reserves.asp

ABOUT CIDAN CIDAN Investments Limited is an investment and fund management company licensed by the Securities & Exchange Commission (SEC) and the National Pensions Regulatory Authority (NPRA).

RESEARCH TEAM Name: Ernest Tannor Email:etannor@cidaninvestments.com Tel:+233 (0) 20 881 8957 Name: Audrey Asiedua Wiafe Email:aaudrey@cidaninvestments.com Tel:+233 (0) 57 840 2700 Name: Moses Nana Osei-Yeboah Email:moyeboah@cidaninvestments.com Tel:+233 (0) 24 499 0069

CORPORATE INFORMATION CIDAN Investments Limited CIDAN House Plot No. 169 Block 6 Haatso, North Legon – Accra Tel: +233 (0) 26171 7001/ 26 300 3917 Fax: +233 (0)30 254 4351 Email: info@cidaninvestmens.com Website: www.cidaninvestments.com Disclaimer The contents of this report have been prepared to provide you with general information only. Information provided on and available from this report does not constitute any investment recommendation. The information contained herein has been obtained from sources that we believe to be reliable, but its accuracy and completeness are not guaranteed.

WWW.BUSINESS24.COM.GH

NO. B24/317 | NEWS FOR BUSINESS LEADERS

WEDNESDAY, APRIL 13, 2022

FAO Food Price Index posts significant leap in March World food commodity prices made a significant leap in March to reach their highest levels ever, as war in the Black Sea region spread shocks through markets for staple grains and vegetable oils, the Food and Agriculture Organization of the United Nations (FAO) reported today. The FAO Food Price Index averaged 159.3 points in March, up 12.6 percent from February when it had already reached its highest level since its inception in 1990. The Index tracks monthly changes in the international prices of a basket of commonly-traded food commodities. The latest level of the index was 33.6 percent higher than in March 2021. The FAO Cereal Price Index was 17.1 percent higher in March than in February, driven by large rises in wheat and all coarse grain prices largely as a result of the war in Ukraine. The Russian Federation and Ukraine, combined, accounted for around 30 percent and 20 percent of global wheat and maize exports, respectively, over the past three years. World wheat prices soared by 19.7 percent during the month, exacerbated by concerns over crop conditions in the United States of America. Meanwhile, maize prices posted a 19.1 percent month-on-month increase, hitting

PUBLISHED BY BUSINESS24 LTD. TEL: 030 296 5297, 030 296 5315.

a record high along with those of barley and sorghum. Contrasting trends across the various origins and qualities kept the March value of FAO’s Rice Price Index little changed from February, and thus still 10 percent below its level of a year earlier. The FAO Vegetable Oil Price Index rose 23.2 percent, driven by higher quotations for sunflower seed oil, of which Ukraine is the world’s leading exporter. Palm, soy and rapeseed oil prices also rose markedly as a result of the higher sunflower seed oil prices and the rising crude oil prices, with soy oil prices further underpinned by concerns over reduced exports by South America. The FAO Sugar Price Index rose 6.7 percent from February, reversing recent declines to reach a level more than 20 percent higher than in March 2021. Higher crude oil prices were a driving factor, along with currency appreciation of the Brazilian Real, while favorable production prospects in India prevented larger monthly price increases. The FAO Meat Price Index increased by 4.8 percent in March to reach an all-time high, led by surging pig meat prices related to a shortfall of slaughter pigs in Western Europe. International poultry prices also firmed in

step with reduced supplies from leading exporting countries following avian flu outbreaks. The FAO Dairy Price Index rose 2.6 percent and was 23.6 percent higher than in March 2021, as quotations for butter and milk powders rose steeply amid a surge in import demand for near and long-term deliveries, especially from Asian markets. Further details are available here. Updated forecasts for cereals FAO also released its new Cereal Supply and Demand Brief, which includes a forecast for global wheat production in 2022 of 784 million tonnes, a 1.1 percent increase from 2021. That estimate factors in expectations that at least 20 percent of Ukraine’s planted area to winter crops, notably winter wheat, may not be harvested due to direct destruction, constrained access or a lack of resources to harvest crops, reports from Russia of continued conducive weather conditions, as well as prospective production trends in China, the European Union, India, North America and elsewhere. Coarse grain production prospects remain favorable in Argentina, Brazil and South Africa. Wrapping up the 2021 crop year, FAO’s estimate points to a worldwide cereal production of

EDITOR: BENSON AFFUL editor@business24.com.gh | +233 545 516 133.

2 799 million tonnes, up slightly from 2020, with rice production reaching an all-time high of 520.3 million tonnes (in milled equivalent). Global cereal utilization in 2021/22 is projected at 2 789 million tonnes, including a record level for rice, with increases also expected for maize and wheat. Global cereal stocks ending in 2022 are forecast to rise by 2.4 percent from their opening levels, largely due to higher wheat and maize stocks in Russia and Ukraine on account of lower expected exports. The global cereal stocks-to-use ratio is forecast at 29.7 percent in 2021/22, only marginally below the previous year and “still indicating a relatively comfortable supply level,” according to FAO. FAO lowered its forecast for world trade in cereals in the current marketing year to 469 million tonnes, marking a contraction from the 2020/21 level, largely due to the war in Ukraine and based on currently available information. Expectations point to the European Union and India increasing wheat exports, while Argentina, India and the U.S. shipping more maize, partially compensating for the loss of exports from the Black Sea region.