Three adjudged best ministers receive their award 03
AfDB chief garners strong global support for Africa 05
NEWS FOR BUSINESS LEADERS
BUSINESS24.COM.G H | WEDNESDAY, AP RIL 27, 202 2
PAPPS growth hangs on support for SMEs, Fintech – expert FBNBank’s MD 03 appointed to Venture Capital Trust Fund board
By Eugene Davis The Country Manager at AZA Finance, Nana Yaw Owusu-Banahene, has encouraged African countries and businesses to strive to streamline the Pan-African Payment and Settlement System (PAPPS) to ensure the full benefit is derived. According to him, “if we are able to implement PAPPS very well and bring all the fintechs and mobile money companies on board, SMEs and individuals can easily make payments into African countries at lower cost than what they are paying now.” The full implementation of PAPPS is expected to save the continent more than US$5bn in payment transaction costs each year.
Speaking at the Money Summit event under the auspices of B&FT, he indicated that his company is deepening collaboration with licensed mobile money companies and financial technologies(fintechs) and are leveraging on their license as well as providing infrastructure and technology. He also touched on the emergence of crpto-currency and stated that it has to be done well because its implementation can cause “certain shocks” in the economy in terms of financial stability and monetary supply. The 2nd Deputy Governor of the Bank of Ghana, Elsie Awadzie, who represented the
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Practical steps to shore up exports plausible The Ghana Export Promotion Authority launched the National Export Development Strategy (NEDS) which is an initiative of the Ministry of Trade and Industry in the last quarter of 2020. The strategy is being mainly implemented by GEPA to develop the potential of the nontraditional export (NTE) sector through industrialization and intense collaboration between the private sector and government. The strategy has selected 17 priority products for Ghana to invest resources towards the achievement of the desired outcome. The 10year structural transformation embedded in the NEDS is targeted to earn the country $25.3 billion in 2029 from Non-Traditional Exports if NEDS is fully funded and implemented. To ensure the successful implementation of the NEDS, the sector groups and committees will be tasked with developing the selected priority products for maximum gains under the single market. The target sector groups and committee of
the NEDS are based on the priority product groupings and will include; the following; NonAgro Products, Trade and Investment Facilitation, Agro-Products, Technology and Innovation, Services Export, Transport and Logistics, Creative and Industrial Arts, Local Government, Infrastructure and Utilities and Finance. This is a practical strategy that will greatly impact the growth of the nation’s export business amid the implementation of the continental trade agreement. The NEDS is a key policy enabler for ensuring that Ghanaian traders and enterprises are equipped to compete on the gobal market and meet its 25.3 billion dollar target. The NEDS can only be implemented effectively if it has a well-defined framework that includes policy, technical, and input from both the government and the business sector. The inclusion of the NEDS Secretariat will enable Ghana to take a consistent approach to achieve the 10-year goal of increasing the Non-Traditional Exports from the current 2.8 billion dollars to 25.3 billion dollars.
PAPPS growth hangs on support for SMEs, Fintech – expert starts from page 1
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Governor, in her opening remarks indicated that the central bank has assisted in the testing and piloting of PAPPS as a member of the governing council and reckons it represents “a major leap to help unleash our regional trade and investment opportunities.” The Vice President of Ghana in January this year launched PAPSS, designed to designed to enable instant and secure payments between African banks, payment service providers and other financial market infrastructure; enable instant and near instant payments made by both originators and beneficiaries in their local currencies anywhere in Africa. She further stated that the central bank continues to promote a modern, innovative resilient and inclusive payment systems in Ghana to help boost commerce and access to financial services, which in turn should help Ghanaian micro small and medium sized enterprises to “plug into the AfCFTA market and beyond.”
PAPSS is a centralised payment and settlement infrastructure for intra-African trade and commerce payments. This project which is being developed in collaboration with the African Export-Import Bank, Afreximbank will facilitate payments as well as formalise some of the unrecorded trade due to prevalence of informal crossborder trade in Africa. It will also provide alternative to current high-cost and lengthy correspondent banking relationships to facilitate trade and other economic activities
among African countries through a simple, low-cost and riskcontrolled payment clearing and settlement system. The benefits of PAPPS for cross-border payments include cost reduction; reduction in duration and time variability; decreasing liquidity requirements of commercial banks; decreasing liquidity requirements of central banks for settlement as well as its own payments; and strengthening Central Banks’ oversight of cross border payment systems.
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WEDNESDAY, APRIL 27, 2022
FBNBank’s MD appointed to Venture Capital Trust Fund board
The Managing Director of FBNBank, Mr. Victor Yaw Asante, has been appointed as a member of the Board of Trustees of the Venture Capital Trust Fund (VCTF). Mr. Victor Yaw Asante who was sworn-in as the ninth member of the governing board of the VCTF is representing the Ghana Association
of Bankers (GAB) on the Board. Other members of the Board of Trustees who were sworn-in earlier include Mr. Kofi S. Yamoah as Board Chairman, the VCTF Chief Executive Officer, Mr. Yaw Owusu-Brempong, Deputy Minister of Finance, Hon. Dr. John Ampontuah Kumah, the Chief Executive of the Ghana Enterprises
Agency (GEA), Mrs. Kosi YankeyAyeh and Mrs. Efua Appenteng as members. The others are Mr. Kisseih Antonio, Mrs. Mabel Nana Nyarkoah Porbley and Mr. Brian Frimpong. The Venture Capital Trust Fund (VCTF) was established by Venture Capital Trust Fund Act, 2004, (Act 680) to provide financing to Small and Medium Enterprises. Since its inception, the VCTF has made tremendous impact on venture capital financing in Ghana. The vision of VCTF is to create a vibrant and well-structured venture capital industry boasting of investments in various sectors, leading to poverty reduction through jobs and wealth creation with a collateral growth on government revenues. The VCTF has been able to undertake this mandate through joint ventures with partners from varied sectors with interest in the venture capital/private equity ecosystem of Ghana, leveraging in excess of US$77million in investments. These partners include banks, insurance companies, funding institutions and public institutions. Commenting on his appointment, Mr. Victor Yaw Asante said, “Banks in Ghana have a key role to play in ensuring that the Venture Capital Trust Fund delivers on its mandate.
Already banks are supporting the agenda of Small and Medium Enterprises (SMEs) as part of their day-to-day contribution towards the development of Ghana’s economy. With their partnership with the Venture Capital Trust Fund, there will certainly be a more focused delivery on the support for the SME agenda. This certainly puts me in a unique position, as the representative of the Ghana Association of Bankers, to help drive this agenda religiously, together with my colleaguemembers, ensuring that the Venture Capital Trust Fund progressively increases its support to SMEs thereby providing jobs and reducing poverty. It is a responsibility which I wholly embrace and I am passionate about.” Since its establishment in 2004, the VCTF has created seven funds with investments in over 60 companies leveraging US$89.7million from an invested capital of US$29million. Quite recently, the Government of Ghana secured US$40million from the World Bank Group for the VCTF to revitalise the Fund and to strengthen its position in order to be able to support the transformation of SMEs, especially viable start-ups in the country.
Three adjudged best ministers receive their award Three ministers jointly adjudged best ministers in the FAKS Investigative Services ‘Performance of Ministers’ survey, 2021, have been presented with their awards. They are Hon. Kwaku Ofori Asiamah, Minister for Transport, Hon. Godfred Yeboah Dame, Minister for Justice & AttorneyGeneral, and Dr. Yaw Adutwum, Minister for Education. A nicely designed plaque with their names boldly written on it were presented to them by the Chief Executive Officer of FAKS Investigative Services, Fred Yaw Sarpong, in their respective offices in Accra on different occasions. The Transport Minister, Hon. Asiamah, received his award on Tuesday, April 18, 2022. It is the second time he has emerged overall best Minister in the FAKS Investigative Services Performance of Ministers survey, with the first being 2020. The three ministers jointly scored 92% to claim the topmost position after 3,661 out of 3,953 respondents gave a yes vote for their outstanding performance during the year under review. For instance, Hon. Asiamah was highly acknowledged for his
Ministry’s intervention during the commercial drivers’ strike as well as the massive transformation he has brought to the transport sector. Hon. Godfred Yeboah Dame was also highly acknowledged for the role he played in the admission of 499 law students into the Ghana School of Law, Ghana winning the Norway Chancery case and also helping to transform the Registrar General’s Department. Dr. Yaw Adutwum on the other hand, was greatly acknowledged for the introduction of the No Guarantor Tertiary Students Loan policy as well as that of Science, Technology, Engineering and Mathematics (STEM) by his Ministry. Commenting on the award, Hon. Asiamah said he is inspired by the public’s acknowledgment of his work, pledging to collaborate with stakeholders in the transport industry to initiate more programs and policies that will impact positively on the lives of the people. “I am highly motivated for receiving this award. In fact, it has spurred me on to work more to ensure safety on our roads and on the Volta Lake. The human life is
critical that we need to look at how we develop the Volta Lake Transport to make it safer for our people. Safety on the Volta Lake is so cardinal at the heart of President Nana Addo Dankwa Akufo-Addo that he has secured a US$148million loan facility which has received Cabinet approval to transform the Volta Lake Transport. This, I will ensure that it is done within the scheduled time to bring relief to our people once Parliament also approves it”, he noted. The CEO of FAKS Investigative Services, Fred Sarpong, also commenting on the awards, said the survey is an indication that the public is monitoring whatever the ministers, deputy ministers, and CEOs of state institutions are doing, cautioning all government appointees to justify the confidence reposed in them by the President. “The survey is enough to tell
us that the people are watching and so the ministers should be very careful in whatever they do in their respective positions”, he noted. The survey on the performance of ministers, 2021, according FAKS Investigative Services, was focused on opinions from the public, assessment from the Ministries and Agencies as well as information from the Regional Coordinating Councils (RCCs). The public, it added, contributed largely to the outcome of the survey, especially, with regards to the Ministers, Deputy Ministers, Regional Ministers and CEOs of State institutions. The survey was conducted from October to December 2021, and had journalists, students, traders in general, traditional rulers, teacher, business owners, Civil Society Organizations, drivers, academia among others as its respondents.
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AfDB chief garners strong global support for Africa
African Development Bank Group President Dr Akinwumi Adesina concluded a three-day official visit to Washington DC on Saturday. Alongside the Spring Meetings of the International Monetary Fund and World Bank, the visit included several bilateral engagements with stakeholders on African development. Adesina garnered broad strong support for a robust 16th replenishment of the African Development Fund, the Bank Group’s concessionary lending arm that supports Africa’s low-income economies. Replenishment efforts continue through October, when partners are expected to make their pledges. During bilateral meetings, United States Assistant Treasury Secretary Alexia Latortue said the African Development Fund was critical to Africa’s development landscape. She assured the Bank President that the US remains a strong and proud supporter of the Fund, which has strategic focus and delivers impact. Latortue applauded the leadership of Dr. Adesina in developing the Bank’s bold African emergency food production plan to avert the looming food crisis due to the Russian war in Ukraine. She assured him of the strong partnership of the US Treasury Department on the plan. Dr. Adesina received similar strong support for the African Development Fund replenishment from other partners, including Sweden’s Minister for International Development Cooperation Matilda Ernkrans, Anne Beathe Tvinnereim, Norway’s Minister for International Development, Vicky Ford, Minister for Africa of the United Kingdom, and Paul
Ryan, Director of International Finance and Climate of Ireland. They gave their strong support for the African Development Fund to be allowed to go to the market to leverage its equity and raise more financing for low-income and fragile states. Adesina affirmed to the shareholders that the African Development Fund’s impact on Africa, through their support, was massive and far reaching. According to Swedish Minister Ernkrans, “the African Development Bank is doing incredible work and we strongly support the Bank. Sweden supports the African Development Fund to leverage its resources from the market to put more resources for countries. You are doing an excellent job.” Meeting with the African Union’s Group of 15 Finance Ministers, Adesina outlined the continent’s immediate challenges and the solutions being applied to tackle them successfully. Top of Adesina’s list was a plan for massive food production in the face of a looming global food crisis caused by the Russian war in Ukraine war, and the need for a more flexible and substantial replenishment of the African Development Fund. The ministers agreed to a joint communique on financing Africa’s economic resilience in turbulent times. They called for a substantial replenishment of the African Development Fund and for the Fund to be allowed to use its equity to leverage more resources from international capital markets to meet the rapidly growing needs of countries in Africa. Adesina highlighted the Bank’s innovative Technologies for African Agricultural Transformation (TAAT), a
program operating across nine food commodities in more than 30 African countries. He said the Bank will mitigate the effects of the food crisis through an African Food Crisis Response and Emergency Facility – a dedicated facility that will provide African countries with resources needed to raise local food production and procure fertilizer. According to Adesina, a fertilizer crisis borne out of the Russian war in Ukraine could put more than $10 billion of food production at risk. He said a Bankinitiated meeting of key global development, finance, public and private sector leaders is scheduled for mid-May to tackle the access to fertilizers for Africa. Adesina was received at the White House by Dana Banks, Special Assistant to US President Joseph Biden and Senior Director for Africa at the White House. Banks said it is important to mitigate the spill-over of the Russian war in Ukraine on food security in Africa and strongly welcomed the leadership of the African Development Bank on its emergency food production plan for Africa. Adesina also met with Melinda French Gates, co-chair of the Bill & Melinda Gates Foundation. French Gates said it is important for Africa to feed itself and focus on nutrition. She expressed strong support for the bold African emergency food production plan developed by the African Development Bank, and she called for a strong replenishment of the African Development Fund. “I will be your strong advocate for G7 countries to do more for the African Development Fund and to put in more resources for Africa,” she said. A meeting of heads of regional
multilateral development banks was held to discuss, among other things, the impact the Russian war in Ukraine was having on development across the world. Adesina spoke about its direct impact on food and fertilizer supplies in Africa. He also emphasized the Bank’s climate change collaboration with the Global Center on Adaptation, as well as the its record-breaking 83% investment portfolio in renewable energy. Adesina and several multilateral development bank heads agreed there was a need for a common voice on the re-channeling of the International Monetary Fund’s Special Drawing Rights. The Bank President also spoke about the importance of indigenous vaccine production in Africa, and progress being made on the proposed establishment of the African Pharmaceutical Technology Foundation. During an engagement at the Atlantic Council earlier in the week, Adesina fielded questions from the Council’s Africa Center Chair, Ambassador Rama Yade and others, giving a broad perspective of Africa’s challenges and the steps being taken to address them by African countries with the support of the African Development Bank Group. He called for greater resource mobilization in Africa. In his words, “I do not believe in begging. Africa should develop more using its own resources”. The Bank Group chief invited his various interlocutors to the African Development Bank Group Annual Meetings taking place from May 23 to 27 in Accra, Ghana.
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We-Fi announces new round of funding for women entrepreneurs The Women Entrepreneurs Finance Initiative (We-Fi) has announced a new round of funding under which the African Development Bank’s Africa Digital Financial Inclusion Facility (ADFI) will receive $15 million to develop and extend digital financial solutions to women-owned small and medium businesses in Cameroon, Egypt, Kenya, Mozambique and Nigeria. This fourth round of financing of $54.8 million will benefit almost 69,000 women entrepreneurs in developing economies with access to digital technology and finance. The funds will enable the Africa Digital Financial Inclusion Facility to design and implement programs to improve digital access to finance for women entrepreneurs, reducing the $42 billion financing gap, and improving their operational
efficiency to build back better following the COVID-19 crisis. “We-Fi’s fourth round of allocations comes at a crucial time. Women’s economic empowerment is under pressure due to conflict and insecurity, rising prices and the continuous fallout from the Covid pandemic around the world,” said Bärbel Kofler, Parliamentary State Secretary of Germany’s Ministry for Economic Cooperation and Development. “I am pleased to see our Implementing Partners preparing such strong proposals to support womenled businesses. Access to technology and financing will be key to unlock the potential of women
entrepreneurs.” “Digital financial solutions are key to improving the quality of life of people in Africa and to reducing the gender access-tofinance gap. This funding, which is complementary to the Affirmative Finance Action for Women in Africa Initiative (AFAWA), will be used not only to broaden access to finance for women small and medium businesses, but also to provide an avenue
for their increased economic empowerment and resilience,” said Stefan Nalletamby, Director of the Financial Sector Development Department at the African Development Bank Group. Three other multilateral development Banks received allocations in this fourth round: The Islamic Development Bank, the Inter-American Development Bank Group, and the World Bank Group.
Vodafone Ghana Foundation provides free medical care to Appiatse residents Vodafone Ghana Foundation, through its outreach programme Vodafone Healthfest, has provided free medical care for over 500 inhabitants in and around the Appiatse community. This follows the devastating explosion along the Tarkwa Bogoso-Ayamfuri road when a truck carrying explosives to a gold mine crashed with a motorcycle on January 20, 2022. Beneficiaries received free medical consultation, counselling, and medications for specific medical conditions. Commenting on this
initiative, the Head of Vodafone Foundation, Rev. Amaris Nana Perbi, emphasized Vodafone’s commitment to providing quality healthcare delivery to Ghanaians through its charity arm. “Vodafone Ghana is committed to providing free and fair healthcare for individuals under its many initiatives, of which Vodafone Healthfest is a part. We are confident that our presence in the Appiatse community with medical practitioners from the Ghana Health Service will positively impact the community
and improve the health of the residents after the unfortunate incident they have experienced this year.” On his part, the Municipal Chief Executive (MCE) of Prestea Huni Valley Municipal, Hon. Dr. Isaac Dasmani, expressed appreciation to the Foundation and encouraged Vodafone to continue reaching out to the Appeatse community with their timely interventions. “Let me take this opportunity to express my sincere gratitude to Vodafone Ghana for bringing us this programme through their
Foundation. In fact, it is a very important programme and from what I saw, I was highly impressed. Many people were affected by the blast; some had minor injuries, and some had broken legs, among others. Fortunately, we haven’t lost any lives because of the interventions we have put in place. At the moment, we are managing minor illnesses that have occurred as a result of the residents’ stay at the camp.” “This programme by Vodafone is indeed a timely one as it will help us control diseases, including communicable diseases that are likely to occur because many people are together in such small spaces. So, we are very much happy that Vodafone has intervened, and we hope that they continue coming until we move the residents to a new place.” Earlier, Municipal Director of Health Services, Prestea Huni Valley Ghana Health Service, Joseph Kwame Sampson, said through the medical screening provided by Vodafone Ghana, a lot of diseases that stemmed from the residents’ stay in the camp have been identified. While commending Vodafone for this initiative, he urged other organizations to emulate the kind gesture by Vodafone Ghana by extending their support to the people of Appiatse.
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Macron’s post-election dilemma By Jean Pisani-Ferry French President Emmanuel Macron, re-elected with 58% of the vote, received 85% of Parisians’ votes and three-quarters of those of SeineSaint-Denis, a working-class district at the outskirts of the capital where 30% of the population is foreign-born. But in the Somme district, where Macron was raised, his far-right challenger, Marine Le Pen, was ahead, and in the Pas-de-Calais, where Macron has a home, she got 58%. In this deeply divided country, there seems to be no better predictor of the vote than distance to metropolitan centers. Occupational and educational (rather than income) cleavages matter, too. Two-thirds of French workers went for Le Pen and threequarters of its managers for Macron, according to polling by Ipsos, while three-quarters of university graduates went for Macron, against one quarter for Le Pen. Sociological determinants are compounded by location. France is fast becoming a country where people cluster near their peers. Between 2008 and 2018, the share of managers and high-skill workers in cities like Paris, Bordeaux, or Lyon has increased by four or five percentage points, while lower-middle-class and working-class residents moved out. At a deeper, individual level, satisfaction with one’s life was a key determinant of the vote. Some 80% of those dissatisfied with their life voted for Le Pen. As documented by Yann Algan of HEC Paris business school and his colleagues, social trust or the lack of it significantly influences voters’ choices. These findings seem terribly
familiar. As in the United States, how much you studied and where you live seems to determine for whom you vote, and support for far-right candidates is becoming entrenched among working-class voters. But to stop here would be too simple, because the biggest shock in this election was not the MacronLe Pen run-off, which was expected, but the devastation of the traditional parties that occurred in the first round. Whereas their candidates jointly gained 56% of the vote in 2012, they received only 6.5% of it ten years later. Among major European countries, only Italy has experienced such an overhaul of the political landscape in recent years. The winners were Macron and Le Pen, but also Jean-Luc Mélenchon, a former socialist minister who reinvented himself as the standardbearer of the radical left and missed qualifying for the second round by a hair’s breadth. The veteran politician, a sort of French Bernie Sanders, carried the urban youth vote, with most of those who could have voted for the Greens or the Socialist Party regarding him as the only chance to make a difference. Mélenchon’s voters helped secure Macron’s victory, as 42% of them are estimated to have voted for him in the second round (41% abstained and 17% voted for Le Pen). But instead of preparing to form a coalition, like in a system with proportional representation, where competing parties must find common ground to govern, France’s rival parties are already gearing up for the parliamentary election in June.
In his victory speech, Macron pledged to consider the views of all those who voted for him, to listen more, and to govern differently than he did in the past five years. The issue is what this may mean in practice. If he wants to govern from a broader base than the 28% he got in the first round, he must take into account the preferences of those whose first choice was Mélenchon. An explicit alliance is evidently not in the cards, but even a de facto coalition of wills is hard to imagine. Macron and Mélenchon are programmatic near-opposites. Whereas Macron campaigned on raising the retirement age, Mélenchon promised to lower it. Macron wants to lower business taxes, while Mélenchon wants to raise them. And while Macron was planning €50 billion ($53.6 billion, or 2% of current GDP) in new public expenditure programs, Mélenchon called for an increase five times larger. The one topic where they might find common ground is the green transition, as Macron has explicitly endorsed Mélenchon’s concept of “ecological planning” and has pledged to put the prime minister directly in charge. But even here, Macron wants to launch a new generation of nuclear reactors, while Mélenchon favors going 100% renewable. In this regard, France is not unlike the US, where traditional Democrats and Sanders supporters find it impossible to agree on anything substantial, with their disputes laying the ground for a crushing defeat in this November’s mid-term elections. But an enduring triangular fight
between left, center, and far right means that at some point Le Pen, or her political heir, may find a way to enter the Élysée. The question for Macron is how to give his second-round voters valid reasons to believe that he has listened to them. The one thing he cannot and should not do is to stop carrying out the economic reforms he thinks will put France on track for an economic resurgence. Education cannot wait, the employment-to-population ratio is still nine percentage points lower than in Germany, and an aging society cannot leave pension reform unattended. But there is potential for an opening on three related issues. First, managing the green transition is a relatively new and encompassing endeavor, and although it is not an easy field, positions are less set in stone than they are on taxation and social-welfare reform. Second, Macron must make good on his recognition of the need to change his vertical approach to governance. It takes two to tango, but social dialogue and more participatory democracy are worth a try. Lastly, Macron’s signature take on social issues has been that equality of opportunity matters more than redistribution. A more balanced approach, with greater attention to distributional issues, would better assuage the voters who re-elected him.
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Ckrowd acquires leading digital agency to create Ckrowd Advert Ckrowd, Africa’s most preferred and premium content streaming platform, announced today the acquisition of one of Africa’s leading marketing agencies. The acquisition bolsters Ckrowd’s capabilities in digital marketing automation, providing content creators across Africa and the Diaspora with the necessary digital marketing tools to increment and control their revenue generation process online. Ckrowd clients will be able to tap into the longstanding experience of this leading marketing agency’s deep knowledge to improve reach to content consumers and support their need to build very loyal communities on Ckrowd, and allow content creators, influencers and more to monetise their exclusive content, which will be shared across the globe to their fanbases. One of the direct results of this strategic deal, has been the conception and development of Ckrowd Advert, which aims to further facilitate content distribution and marketing. This tool is also useful for businesses who aims to strategically target a wider and less traditional consumer base online. Content creators, businesses and other clients will also have access to Ckrowd Advert and its proprietary
technology platform that offers support and services marketing in Africa for small and medium business enterprises, leveraging SMS, WhatsApp & email marketing to support their campaigns, websites, mobile apps, social media and brand stories. They will gain the ability to provide consumers with impactful content that is rapidly produced, informed by data, optimized by channel, and delivered at scale. Ckrowd advert can reach a wide African and Diasporan audience, who will be notified about unique contents being released and available on Ckrowd. Through this strategic acquisition, Ckrowd reiterates its commitment to reach further into the 1.3 billion African and the Diasporan market. Ckrowd also intends to support
metaverse experiences between creators and their superfans, which has been an important experiential trend over the last two years. This acquisition will also enable the creation of a ticketing product, which the technology platform intends to grow into one of the biggest online ticketing companies, facilitating unique live & on- demand digital experiences on Ckrowd. Kayode Adebayo, CEO of Ckrowd said: “We believe that everyone creating content should gain the most commercial value from their content creation and distribution, without having to relinquish ownership of the intellectual property in order to achieve a successful distribution control to third parties, as often happens for many of these creators. Ckrowd is persuaded of the fact that having control over the supply and revenue of content is crucial, which has been the inspiration towards this acquisition. Our mission is to give content creators the necessary tools to operate like business enterprises, in order to enjoy the full benefits of their hard work. Combining Ckrowd. com and Ckrowd Advert provides creators the ability to control the end-to-end revenue process of their content creating business. “Working with Ckrowd and particularly on the integration and
setting up of the Ckrowd advert marketing system, has demonstrated Ckrowd’s commitment to the strategi distribution of content globally, reaching high numbers across the Continent and the Diaspora. Our vision for the product was a joint development and Ckrowd has further helped to amplify the scope of the product and reach the desired users, through its state-of-the-art facilities and resources. This acquisition has allowed to achieve the goal we set to achieve in speedier timings. In my new capacity at Ckrowd, as the new Head of Product Development, I can continue to help content creators and businesses with end-to-end content solutions that deliver personalised customer experiences and drive business impact” commented Timothy Oladunmomi, Head of Product Development at Ckrowd Advert. Products such as Ckrowd Advert, that have been the direct result of this acquisition, complement Ckrowd creative-led services around the globe and can increasingly fulfil users, content creators and businesses’ need and helping them to work more efficiently, effectively and creatively to be more competitive in their industries.
Intellectual Property has power to shape economies -lawyer By Eugene Davis Intellectual Property (IP) rights is key to improving the lives of many, particularly the youth, and now -more than ever, stakeholders have a role to play to support local investment, creative innovation, investment in research and development, and investment in people, skills and training, Sarah Norkor Anku,a lawyer and an author has suggested. According to Mrs. Anku, supporting creative businesses to better exploit their Intellectual
Property, will lead to enhanced Ghanaian exports and the growth of indigenous independent producers. Speaking at her book launch in Accra to mark World Intellectual Property Day, she stated that the book titled ‘Monetising Your Creativity and Innovation: An Introduction to Intellectual Property’ is targeted at young creative minds and intended to help such creative minds navigate the world of intellectual property to achieve m a x i m u m benefits from their creativity and innovations. It also provides information on how to monetise one’s creativity and innovation using intellectual property rights. It seeks to create awareness among the youth in particular. It is presented in a form of a dialogue Sarah Norkor Anku is the author of the book
for easy understanding of the otherwise unfriendly and abstract subject of IPRs. The dialogue is situate within the African context using the mythical character Kwaku Ananse, the god of knowledge, to explain to students what the subject is all about. It has five chapters; with chapter one focusIng on generation of intellectual property (the creative ideas), providing information about all the IPRs, from patents through copyright to even Plant Variety Protection and traditional knowledge. Chapter two provides
information on how one can protect works of creativity and innovation so as to secure their rights in the created works, whiles Chapter three explains the various forms of IP commercialization, including contracts the IPR holders must look out for. The others; chapter four touches on enforcement of the IPRs including border measures, litigation and ADR, whereas Chapter five highlights on trending issues in IP, including AIs, blockchains and NFTs and concludes with some advice from Kwaku Ananse.
WEDNESDAY, 27TH APRIL, 2022
The Netherlands celebrates King’s Day today
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The Netherlands celeberate King’s Day WEDNESDAY, APRIL 27, 2022
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King of The Netherlands,
King Willem-Alexander
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Message from His Exellency Jeroen Verheul The Netherlands Ambassador to Ghana
“Let me say to the Dutch and Ghanaian business community that I’m very impressed with the way you have been able to survive the difficulties you have encountered over the past two years because the pandemic has provided a lot of challenges. However, I’m impressed by the resilience and innovativeness different companies have deployed to overcome these challenges. I’m also convinced that these strengths will be useful in overcoming the challenges that we will be facing in the near future. Let’s not underestimate the challenges that we have considering the current rate of inflation, the depreciation of the Ghanaian cedi as well as the public finance challenges that the government
is facing. These national challenges are compounded by a deepening international crisis resulting from the Russian invasion in Ukraine. The impact of this war will not be limited to Europe, also Africa including Ghana will feel its effects. So, there will be tough times ahead economically, but I’m very sure the innovative power and resilience of the Ghanaian and Dutch business communities will be strong enough to push businesses through the challenges that we will be facing in the coming period.” On the political diplomacy side, I see GhanaNetherlands relations growing from strength to strength. We are moving towards full-
fledged political bilateral relationship and this is important because Ghana is now the Chair of ECOWAS and a member of the Security Council, taking its position in international relations and for Netherlands, it is important to maintain good relations with countries that take an important role in international relations. Ghana has progressed impressively in terms of both economic growth and infrastructure and it is our view that we should help to consolidate that improvement and to also strengthen the relations between Netherlands and Ghana economically. That is the primary focus of this embassy.”
The Netherlands celeberate King’s Day WEDNESDAY, APRIL 27, 2022
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Today is the birthday of His Majesty King Willem Alexander – and as GNBCC – Board, Management, Staff & Members - we
Congratulate our King with his birthday. This day is also our National Holiday named ‘Koningsdag’ which is celebrated all over the Kingdom of The Netherlands, comprising of Aruba, Curacao, the Netherlands and SintMaarten.
This year again up to a million visitors are expected to descend upon Amsterdam on 27 April to celebrate ‘ Koningsdag’ . Celebrating people cover everything in orange – from flags, wigs, and clothing to revelers’ faces. The orange colour honours the royal family, the House of Orange-Nassau. The celebrations begin on ‘Koningsnacht’ (King’s Night), and the alcohol and music will not stop flowing for the next 24 hours. While COVID-19 forced the cancellation of plans for Koningsdag 2020 and 2021, 2022 will see the celebrations start up again. Today the Dutch community will celebrate King’s Day on the invitation of our Netherlands ambassador Hon. Jeroen Verheul for which also a number of our Premium Members have been invited. As GNBCC we also congratulate our ambassador as representative of the Kingdom of The Netherlands in Ghana and we wish that the business relations between Ghana and our Kingdom will continue to flourish. ‘Leve de Koning!’ (Long live the King!) Tjalling Yme Wiarda MA MBA GM GNBCC on behalf of the Board / Management + Staff / Members
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Fun facts about The Netherlands 1. The Dutch are the tallest in the world. A study in April 2021 found that the Dutch are still the tallest in the world! The average height of a 19-year-old Dutch female is 1.70 meters, while the average height of a Dutch male is 1.83 meters. 2. Almost a third of The Netherlands is situated below sea level Water is a way of life for The Dutch. The Dutch live on and with water. They created the world’s earliest public transport network, using passenger boats to travel over the otherwise impassable landscape in the 17th century. The waterways are in total over 6,000 km long and there are more than 10,000 house boats in The Netherlands.
3. Don’t call The Netherlands ‘Holland’ The Netherlands consists of 12 provinces which includes Holland, an area made up of two provinces; North-Holland (NoordHolland) and South-Holland (Zuid-Holland). In the past, Holland contributed heavily to the nation’s economy and as such, incorrectly became a common name to indicate the entire country. In January 2020 the Dutch government officially rebranded and dropped its country’s nickname, ‘Holland’. 4. Amsterdam The name of the capital of the Netherlands, dates back from the 12th century, when a dam was built in the Amstel river. It’s a unique city built entirely on piles and has 1200 bridges.
Its famous for its museums, bustling cafés and stately merchant houses lining the famous canals in the narrow streets of the Jordaan district. If you love to shop, visit de 9 straatjes (9 streets) right in the middle of the canal belt, between the Singel and Prinsengracht. 5. Cheese Dutch people eat an average of 14.3 kilos of cheese per person per year. Cheese has been a huge part of the Dutch economy and culture since the Middle Ages. It’s fitting then that the Netherlands is home to an area known as Cheese Valley, made up of four regions: Gouda, BodegravenReeuwijk, Woerden and Krimpenerwaard. Gouda cheese is famous around the globe and is one of the Netherlands’ biggest and most important export product
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Interview with The Netherlands Ambassador to Ghana; H.E. Jeroen Verheul On the occasion of this year’s Orange Kings Day, Business24 speaks exclusively to the Netherlands Ambassador to Ghana, H.E Jeroen Verheul, on wide-ranging topics including the future of GhanaNetherlands bilateral relations and the key areas of economic cooperation post-Covid. Q: What is your assessment of GhanaNetherlands relations over the past six months in office? A: Relations between Ghana and the Netherlands date back to a very long time. I presented my credentials to the president in September and I recalled that I was treading in the footsteps of many predecessors. One of the first credentials was presented to the then Asante King some 321 years ago. So, there is a long history of political, diplomatic and economic relations between the two countries. I feel humbled to be in such a long range of predecessors to continue strengthening and cementing those bilateral relations. I have been in many mainly African countries such as Uganda, Tanzania, Yemen, Ethiopia, Zambia, Cameroon etc so I’m not a newcomer to Africa but a newcomer to Ghana and for me, it’s a real pleasure to be here and to experience the west coast having mainly been working on the east coast of Africa. In 1986, I started my diplomatic career in Cameroon, and this is my last posting before I retire. I’m happy to complete the full cycle. Q: What are the key areas of cooperation between the two countries and how can this cooperation be solidified in a mutually beneficial way? A: Both Netherlands and Ghana are working to deepen and strengthen relations to move beyond development, cooperation and assistance. On the Ghana side is “Ghana beyond Aid” agenda introduced by President Nana Addo Dankwa Akufo-Addo and on the Dutch side we have “From Aid to Trade” and I think these two agenda merges quite nicely. Our agenda has been put together for quite some time now and this year will be the last that we’ll be affecting payments under the bilateral development cooperation that’s run by this Embassy. This is the impact of the moving from aid to trade agenda on the part of the Netherlands. We have stopped our bilateral aid programme through the embassy but we will continue to provide developmental assistance from the Foreign Ministry’s side and of course through multilateral institutions like the World Bank, the African Development Bank and the European Union. So, we will continue that kind of support through the United Nations, but our
bilateral programmes will be focusing on strengthening these trade and investment relationship. Ghana has p r o g r e s s e d impressively in terms of both economic growth and infrastructure and it is our view that we should help to consolidate that improvement and to also strengthen the relations between the Netherlands and Ghana economically. That is the primary focus of this Embassy. Q: The Netherlands Embassy has continuously promoted and facilitated foreign investments from the Netherlands to Ghana, aside aiding Ghanaian companies looking for Dutch products and services. What is the long-term goal for this strategy? A: Foreign direct investments are private sector decisions and so companies will have to decide where they invest. The Dutch government cannot force companies to invest in Ghana so what we need to do is to provide information and share what the implications are for companies that want to invest in Ghana. Of course, there are many advantages for companies to select Ghana as their investment destination because geographically, it has a very interesting position as an Anglophone country in a mainly Francophone region. It also has a very impressive track record in terms of economic development and it is investing a lot of energy into promoting Ghana as an investment destination. So, there are many advantages for Dutch companies to choose Ghana as their stepping stone for investing in West Africa. However, there are also challenges in investing in Africa and what we can do as a government institution is to help de-risk investments. We have many instruments that can be given to companies to reduce the risks when they want to invest in Ghana. For example, there is the bilateral investment treaty between Ghana and the Netherlands which gives the opportunity for international arbitration in case there are disputes about an investment. It also provides guarantees for investors in terms of how they are being treated in Ghana and so investment treaty is one of the basic requirements that can help promote investments in Ghana. Suffice to say that for the Netherlands
government and the Embassy, it is important to promote trade and investment and we’re very open to see how we can further the economic relations between the two countries. Q: The Ghanaian economy is currently embarking on an aggressive industrialization drive. What are the prospects for trade between the two countries, and how does the Embassy intend to partner the Ghanaian government on this journey? A: I’ll answer this question with two examples: One of the traditional products that have been traded between the Netherlands and Ghana is cocoa; we have been trading with Ghana for decades and Amsterdam, which is the capital of the Netherlands and also a big port, is handling a lot of cocoa from Ghana and Ivory Coast. Many companies that are involved in this trade are also processing the cocoa in the Netherlands. The traditional way of trading was that the raw cocoa beans are imported from Ghana and processed in Amsterdam. Over the years, we see that more and more companies are processing the cocoa beans in the countries of origin. Cargill, for instance, has a huge cocoa processing facility based here in the Tema Free Zone enclave. Recently, they expanded their capacity quite substantially so that more processing can be done locally and this an example with a traditional product like cocoa, where processing is transferred from the consuming countries to the producing countries. Another example is animal feed where a traditional Dutch company produces feed for fish fingerlings and poultry. Their way of trading with Africa and Ghana was to produce the feed in the Netherlands and
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transport that in containers and sell through agents here in Ghana. Over the years, they have created a very strong position on the Ghanaian market, especially amongst poultry and fish breeders so they are also now producing locally in Tema. This means that, more jobs are created in Ghana as well as more economic added value, and that is a trend that we certainly would love to encourage. The major challenge here has been how they can get access to raw materials or inputs locally and that’s an area that the two governments have a role to play to ensure enhanced availability of raw materials so that these good developments can continue to prosper. Q: What is your view on the Ghanaian government’s Ghana Beyond Aid agenda, and in what ways can the Netherlands contribute to this ambitious agenda? A: It’s a bit complicated to put down all the different elements of that agenda but let me start at the point where they are in the Netherlands right now. We had elections last year and a new government has been set up. The Dutch political system is different from that of Ghana. We have several political parties that are represented in our parliament and for our government to be formed, we need to form a coalition between the political parties. Part of the negotiations between the political parties is that, they form a coalition agreement in which they have agreed to strengthen the focus on promoting trade and investments in a number of countries
around the world. This is now being specified in a white paper for parliament and we’re currently in discussion about what this will mean for Ghana. I’m pretty sure that Ghana will be one of the focus countries for the Netherlands to implement what we call the Nexus Policy. There is a nexus between aid, trade and investment and in this nexus we can create synergies between development aid instruments and traditional commercial and trade and investment promotion instruments. We want to strengthen the synergy and coherence between these different instruments so that Ghana can benefit from them. Q: In your estimation, where do you see Ghana and Netherlands relations in the next few years? A: I see them growing from strength to strength; recently, a few weeks ago we had the first political consultations between Ghana and the Netherlands when a delegation travelled to Accra to hold consultations with the Ministry of Foreign Affairs and other ministries and we agreed to have similar meetings in the Netherlands as well. This means that we are developing a relationship that is much broader than a development relationship or even trade and investment relationship. We are moving towards full-fledged political bilateral relationship and this is important because Ghana is now the Chair of ECOWAS and a member of the Security Council, taking its position in international relations and for Netherlands, it is important to maintain
good relations with countries that take an important role in international relations. So, we are seeing the importance of Ghana rising in the international relations domain and therefore we need to increase our engagements with the country. If we look at the challenges internationally, they are quite substantial not just economic challenges but also environmental and climate related challenges. Q: In conclusion, what is the significance of the Netherlands Orange Kings Day celebration and what are you hoping to achieve in celebrating King Willem-Alexander’s birthday this year? A: Unfortunately there’s been a bit of a challenge with celebrating Kings Day. We used to have quite extensive activities around it, but we have not been able to do that due to Covid for the past two years. So, we are trying to gradually see how we can recapture that ground and to restart the activities this year, we will have an official reception on April 27 at my residence and also a cultural event at a colleague’s residence where we’ll feature a fusion of Ghanaian and Dutch culture in terms of both modern and traditional music, because that’s the best way to celebrate a birthday. We used to have the Orange Week where we celebrated all kinds of different activities including promoting cycling which is a very typical Dutch activity that will be very interesting for Ghana to experience and to expand. We’ll be looking at spacing out some of these events all through the year.
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Bamson deepens relations with key distributors Bamson Company Limited is the local and sole representative of AkzoNobel (Sikkens) Car Refinishes BV of Holland. The Akzo Nobel (Sikkens) Regional Sales Manager VR in charge of Sub Saharan Africa and Middle East, Mr. Imran Qutab, during his recent visit to Ghana has assured customers in Africa that Sikkens products supplied to the continent are of the same high quality as those in all parts of the world. “At Akzo Nobel (Sikkens), we follow strict standard European regulations in our operations, so we do not have specific products for particular regions. The qualityof our products is the same wherever you find them,” he stressed. Mr. Imran Syed Qutab was speaking at a meeting with distributors of Akzo Nobel (Sikkens) Car Refinishes (paints and other products). According to Mr. Imran Qutab, auto paints and other products do not contain chemicals such as
lead, cyanide and chromate which are harmful to humans and the environment. “Some competitors’ products on the market still contain those chemicals and consumers must therefore desist from choosing products just because they cost less and rather go for the best quality”. Consider quality not just cost, in order to avoid chemicals that may negatively affect your health, harm the environment and also prove to be expensive in the end,” he emphasized. Mr. Imran Qutab said he had also in recent past introduced a new technology, the photo-spectrometer, which is a camera-like device that assesses colour formulations to help the customer to find the right colour match and thus improve customer satisfaction. www.bamson.com.gh
Managing Director, Mr. Kwame Ofosu Bamfo
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Interview with Mohammed Samara, CEO of MPS Ltd. An exclusive interview with the Chief Executive Officer of Meridian Port Services Limited, Mohammed Samara, on the occasion of this year’s Orange Kings Day celebration Q: Generally, tell us about the impact of MPS Terminal 3 with regards to the ease of doing business and efficiency in cargo handling processes. A: The port is the gateway to trade which is the backbone of the economy whether it’s import or export. The more efficient this port is the more efficient for trade and the economy itself. Previously, Tema Port did not operate 24/7 in terms of receipt and delivery, but we do that along with the loading and offloading of vessels. All statutory authorities agencies work with MPS round the clock overseeing the customs clearance processes and cargo inspection etc. and this has increased the throughput capacity of Tema Port. If we look at the digitalization process, we have deployed the most advanced technology in the world. Now, a truck driver is recognized by the biometric system using only his fingerprint and his truck recognized by the Radio Frequency Identification System reading the RFID tag on the windscreen. There is an automated truck appointment system that supervises the picking and dropping of containers at the terminal after both the driver and truck have been duly registered and taken through a safety induction programme to be able to transact business at Terminal 3 of Tema Port. The entire process has been digitalized and this has significantly enhanced the ease of doing business. Today, the average import truck turnaround time is in minutes not in hours or days like it is in other places or neighbouring ports. The truck turnaround time has reduced significantly with time slot
allocations for drivers to choose anytime of the day and that helps with the workflow. Q: Some shipping lines have named Tema Port as their transhipment hub for their Africa operations, what are the prospects of this development in terms of boosting intra-African trade? A: Should Terminal 3 of Tema Port become a major transhipment hub, then the shipping lines will want to come here as their first port of call on the West African Coastline and by that, transit time from port of lading and container freight will be lesser than the second or third ports of call because the longer ships carry the cargo on the sea, the more bunkers they burn based
on the ships. So, being the first port of call after a long haul coming from the Far East will result in reduced freight to the Ghanaian Importer and Exporters and aside that transhipment will create connectivity with neighbouring ports which is really important. Today, we have services that leave Tema and go to Cotonou or Lagos, and we have services that come from the Far East and do not go to Lome and Cotonou as well as other services that berth at Tema Port for other ships to move the goods to Abidjan. We are creating connectivity with neighbouring port countries through other shipping lines that can the carry both here and there which can be beneficial to Ghanaian exporters because there are direct routes to these African countries. For the AfCFTA especially, this is required; it is an absolute need to help the connectivity and we are working on that. Q: Port infrastructure is a capitalintensive project and MPH’s commitment in this area has been highly commendable. What is the motivation driving your aggressive investments to Ghana’s maritime space? A: For our shareholders, their core business is transport in the means of sea, land logistics and air freight. So, just like how any industry will invest in their production line our shareholders are committed to investing in port facilities which is core business to the shareholders of MPS. Aside this, The Company’s Shareholders believes in the vision of establishing Ghana as a model maritime nation. So far Tema Port remains the preferred port for world shipping lines due to optimal characteristics such as the short waiting time at anchorage, fast vessel turnaround time, higher port capacity, and berth availability. The Shareholders of MPS anticipate that with continuous improvement, The Tema Port will remain a key port in Africa and subsequently become a world player in the maritime space. As a further demonstration of its commitment to ensuring the realisation of this vison, the shareholders have invested in very strategic times, currently, the Terminal is looking forward to receiving 15 additional cranes that were ordered in January 2022 to boost the Terminal capacity.
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Q: What are the prospects of the ports for the nation’s participation in the African Continental Free Trade Area (AfCFTA) A: It’s like this; for the AfCFTA to succeed and for the cargo to flow from one point to another, we’ll need to upgrade the transport and logistics infrastructure. The first port to come out with this kind of modernization is Tema, so we stand a very good chance for attracting manufacturers to come and set up factories to produce in Ghana which is entitled to export into the AfCFTA regions and where the logistics infrastructure and trade lane connectivity are will established. Having the connectivity here and being the first port of call as a transhipment hub, we’ll be connecting the consumers to the markets and if the producers are in Ghana then basically we are creating jobs for Ghanaians and bringing hard currency into the economy. For instance, if you look at Malaysia and Singapore, there are or were small industrial countries that got transformed with a lot of factories that produce goods for export on industrial enclaves in close proximity to their hub. In Africa, we can look at Tangier, which used be a small corner in Morocco but as soon as a hub was created there, all the big industrial names and producers set up factories there because Tangier connects the Mediterranean to Africa, Europe, Far East and the Americas and so it became a central location. So, it is important to have infrastructure for the AfCFTA to really succeed and we are the first to provide that. In fact, according to an April 2022 report by the UN’s Economic Commission for Africa, the AFCFTA is expected to boost intra-African trade by around 40%, with extensive benefits to the transport sectors and so Ghana’s Ports have a huge potential for growth and will continue to attract more business as general trade moves up. Q: What measures will you recommend, by way of regulations and incentives, for investors in the port sector like yourself? A: As a forward-looking nation, our focus
should centre around creating a sustainable and investor friendly environment. For us as a port operator, we can make the infrastructure; we have Phase 2 now and we can go for Phase3. But the flow that feeds this is the trade and industry traffic. So, we should look at other matters that make this flow come. We need to ease the way of acquiring industrial property for the investor to build on, reduce the cost of energy and ease the way of doing business. The port operator is one stakeholder among few that need to upgrade the service levels and put in place the policies that attract industrial investments like Customs and other Statutory Authorities. Certainly the creation of industrial enclaves around Tema will lead to the creation of tax-paying jobs for skilled labour that generate export trade with added value that resides in Ghana therefore a favourable tax regime will be of the essence. Q: Finally, how big is the prospect for Ghana’s maritime trade and logistics business, how brighter or gloomy is the outlook? A: This is a difficult question because last year was extraordinary, the pandemic created a big wave of volume as people stayed at home in some countries though the parameters may differ. People working from home got the chance to buy things that they needed to operate from home including tables, chairs, comfortable sofa or a bigger television. All of these generated quite a bit of trade and demand for things to come whilst some industries were reducing production capacity because most
people were laid off. This created a boom in 2021 which was a fantastic year trade wise across the globe. But demand was not sustained in 2022 because people were no longer buying new things and so the rush was slowed down, although it’s now normalizing. What is not helping cost to go down in the maritime industry is sea freight which is because of high demand from the pacific, across China to America. OUR CSI FOOTPRINT We delivered strong sustainability since the start of business, but our work to drive further improvements in alignment with society’s long-term challenges and expectations never ends. This goes without saying that the impact of MPS goes beyond the Port. From road infrastructure to Health and Educational resourcing, MPS has engaged in some highlevel social impact projects. From the onset of the construction of MPS Terminal 3, we set up a Turtle Hatchery in fulfilment of the company’s Environmental Action Plans for Sea Turtle Conservation (No-Net-Loss commitment) and as per the International Finance Corporation (IFC) Performance Standard. This hatchery is still operated by the Company along the coastal towns in the catchment area along with education of community members on the relevance of turtles to our ecosystem. The company is also a Partner to the Orange Corners Program, an innovative program by the Royal Netherlands Embassy aimed at raising the next generation of sustainable entrepreneurs. On its environmental front, The MPS Terminal 3 Facility is a certified Green Terminal. This was after an audit of its facility, equipment, energy consumptions, operating processes among many other subjects.
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Adonai Shipping: Championing seamless service delivery in Ghana’s shipping sector By Patrick Paintsil
Dutch shipping, logistics and oil and gas services provider Adonai Shipping birthed Adonai Shipping Ghana in 2009, providing a wide range of maritime and oil and gas services. The Ghanaian company first started in the maritime sector providing crew to offshore ships working in Takoradi around the rigs as we focused strongly on the oil and gas business. Over the years, additional services such as ship chandelling and logistics have been added with the latter becoming its key area of focus of the business going into the future. Before starting the Ghanaian company, Adonai Holland was mainly in the business of maritime crewing, mostly putting Ghanaian seafarers onboard of ships in European waters. Following a joint venture in 2015, between parent company Adonai Shipping Limited Ghana and Swire Pacific Offshore of Singapore, additional services were added, mainly in providing offshore vessels to the upstream petroleum sector, to rigs working offshore Takoradi. The vision for setting up the joint partnership was to forge the right mix of expertise, leverage the signature Dutch work ethics and market presence of both parties to offer seamless services in the core areas of shipping, manning, chandelling and logistics. The operations of Adonai Shipping Ghana are driven largely by its Dutch expertise and business culture which it has diligently infused into every area of the business and these solid values has seen the company grow into a formidable player in Ghana shipping and logistics industry. According to its Managing Director, Seth Dowuona Owoo, the company has been built around honesty, openness and integrity in all of its dealings with customers and stakeholders. “What we bring differently to the domestic shipping and logistics business environment is the Dutch business ethics: we always want to work with trusted and reliable partners who will offer value for money services to our clients along the value chain,” he told Business24 in an exclusive interview. Adonai Shipping is TRACE-certified, a reputable recognition from a global antibribery organization which does periodic due diligence checks on its operations to
ensure transactions are being done in the most fair, transparent and honest manner. “I believe we have brought our Dutch way of working into the company in Ghana which is quite different from how things are done on the local business environment. We believe that it is possible to incorporate Dutch procedures and ways of approaching issues into the way things are done in Ghana and drive the sustainability of the company,” Director of Finance, Mrs. Christel Dowuona Owoo, said. As a forward-looking brand, the company is nursing an ambitious desire to enter the maritime logistics and transport value chain strongly in its quest to play a pivotal role in the African Continental Free Trade Area (AfCFTA). This new focus will be buoyed by leveraging its membership with the OBL Network, which a global trade logistics network of elite and trusted shipping services providers with footprints across Africa. “The logistics sector is where we will be able to expand our services because we see more possibilities right now, especially in the wake of the single continental market. Our membership with OBL Network also allows us to do more international business through a trusted network of trade agents and facilitators on the African continent,” she added. According to Ephraim Djabanor Tetteh, Adonai’s Sales Supervisor, the surging cargo volumes through Ghana’s ports also open up opportunities for cargo handling supply chain and transportation services. “Our main focus now is logistics in the areas of clearing, forwarding and import and exports as well as cargo haulage services. We currently transport goods to landlocked countries in West Africa. As a third-party business, we are looking at exploring that aspect of the maritime transport sub-sector even better,” he indicated.
Adonai Shipping is seeking to invest further into critical infrastructure and logistics such as commercial storage and warehousing facilities, fleet of trucks and human capital as it seeks to reposition to explore the domestic maritime logistics sector. “To be able to serve better in this space, we’re looking to invest heavily to help undertake projects on our own. Although we work with trusted thirdparty firm to the best of our knowledge, we believe that will enable us to offer high-end value to our business clients,” said Mrs. Owoo. Adonai Shipping has a plausible ambition for Ghana’s export trade sector; working with smallholder agro-producers and out-grower groups, the company is seeking to assist farmers to access the export market to support government’s quest to build an export-driven economy. The plan is to serve as the sole intermediary between farmers and the export market and by so doing build their competence and capacity to expand their business, improve their livelihoods and make them financially secured. “We want to work with these farmers to first see opportunities in the open market, specifically the AfCFTA and also offer them assistance with logistics and export processes. We want to empower these farmers to stand on their feet as players in the exports value chain,” Mr. Dowuona Owoo further indicated. The company’s dedication and commitment to Ghana’s shipping, oil and gas and logistics sectors have been duly recognised by the industry with several awards to its name. Among them are: 2017: Maritime & Shipping Awards: Lifetime Achievement (CEO award); 2017: Ghana Oil & Gas Awards (GOGA); Oil & Gas Service Company of the year (company award); 2018: Ghana Oil & Gas Awards (GOGA); Oil & Gas service company of the year (company award); and Indigenous Oil Company of the year (company award). Other recognitions include: 2019: Ghana Oil & Gas Awards (GOGA) Oil & Gas Service Company of the year (company award); Oil & Gas personality of the year (CEO award). 2020: Ghana Oil & Gas Awards (GOGA); Oil & Gas Service Company of the year (company award); Oil & Gas personality of the year (CEO award); 2021: Ghana Oil & Gas Awards (GOGA); Oil & Gas service company of the year (company award); Oil & Gas logistics company of the year (company award) and Oil & Gas personality of the year (CEO award).
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Company Profile Hygiene-Shine Services Limited formally known as Kleenex Services Limited was established in January 2010 in the Greater Accra Region of Ghana as a service oriented company that offers diverse services for individuals, companies and governments.
We offer the following services: • • • • •
Janitorial Services, Sale of Janitorial, Hygiene and Sanitary Products, Janitorial Training and Setting up Colour Coding Scheme. Laundry and Dry Cleaning Services, Gardening and Landscaping Services Pest Control and Fumigation Services Pool Cleaning and Maintenance Services
Excellence: At Hygiene Shine Services, we seek to provide the best quality experience with regards to our cleaning and our customer service. Integrity: We hold ourselves to the highest standards of accountability. We strive to act with honesty, openness and to be the embodiment of the words we speak. Accountability: Taking responsibility to complete your tasks, to perform the duties required by your job and to be present for your shifts in order to fulfill and further the goals of the company. Professionalism: Adhering to the company’s standards and expectations in regards to appearance, attitude, behaviour and performance when dealing with coworkers and customers.
With several years of training and experience our clients are guaranteed nothing less than premium and professional services.
Innovation: Exhibiting curiosity, committing to exploration and evolution
Mission Statement
Why Hygiene Shine?
Our mission is to provide the extra service required in maintaining a clean and pleasant environment by paying attention to details and focusing on areas most cleaning services overlook.
We provide our clients a complete package with a team of trained and efficient staff who will ensure that our clients are totally satisfied with services provided at an affordable price. We practice the Colour Coding technique with regards to our Equipment and Detergents. We accommodate staff and equipment as necessary to be absolutely certain that whatever cleaning task needs to be done, is completed on time and without compromise.
Our Vision Our vision is working to be recognized by our clients, employees and the industry as the most respected and the leading provider of cleaning services and facilities support service in the country.
Respect: Hygiene Shine Services is an inclusive organisation where people of all creeds are welcomed and respected on their merits.
Hygiene-shine strives to ensure total customer satisfaction and we are very positive that we can establish a beneficial and lasting relationship with your organization. Our detergents and equipment are environmentally friendly and we adhere to the mandatory safety codes and work ethics to ensure that our staff and clients are safe and protected. We also provide a comprehensive cleaning schedule and checklist designed specifically for your facility with the expertise and ability to provide additional services when needed.
Responsibility: We strive to act with integrity towards our staff, our customers, the community and the environment.
Our System for Award Management (SAM) details are as follows:
Loyalty: Build a strong connection with staff and customers.
SAM Unique Entity Number: HEANJ5S4PTP7 Duns: 561208964 Ncage: SBBD1.
Our Values
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A Cycling Nation Flat, peaceful and pretty as a picture, the Netherlands is the perfect place to get on your bike and start exploring – no matter your fitness level or riding experience. Famous for its cyclist-friendly infrastructure, with more than 32,000 kilometers of bicycle paths throughout the country, there’s so much to discover on a Dutch cycling holiday: from historic cities and Golden Age art to world-class architecture and bucolic landscapes. Soak up the variety of tours and get inspired by our picks of the best organized bicycle holidays in the Netherlands.
Arts: The Dutch Masters Do you love art and culture? Discover the selection of highlights in Holland here. How about old masters who managed to record Dutch history on canvas? You can also see modern architecture and internationally acclaimed Dutch Design. • Arts: The Dutch Masters Dutch masters left their mark on their discipline, whether it was painting or architecture. Painters like Rembrandt van Rijn and Vincent van Gogh had a huge impact on the history of a rt. And today, too, masters like the architect Rem Koolhaas are able to inspire people with their work. To experience the Dutch Masters in an extraordinary way, you should definitely visit Remastered in Rotterdam. In 60 minutes, you will walk through an impressive digital ‘experience’ which displays modern edits of classic works. Using light, technology and sensory stimulation, several leading Dutch digital studios have given classics like Mondrian and Van Gogh an entirely new appeal.
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The growing threat of global recession By Kenneth Rogoff Is the global economy flying into a perfect storm, with Europe, China, and the United States all entering downturns at the same time later this year? The risks of a global recession trifecta are rising by the day. A recession in Europe is almost inevitable if the war in Ukraine escalates, and Germany, which has been fiercely resisting calls to pull the plug on Russian oil and gas, finally relents. China is finding it increasingly difficult to sustain positive growth in the face of draconian COVID-19 lockdowns, which have already brought Shanghai to a screeching halt and now threaten Beijing. In fact, the Chinese economy may already be in recession. And with US consumer prices currently increasing at their fastest rate in 40 years, prospects for a soft landing for prices without a big hit to growth look increasingly remote. Private and official economic forecasts have recently started to highlight growing regional risks, but perhaps understate the extent to which they multiply each other. Widespread lockdowns in China, for example, will wreak havoc with global supply chains in the short run, raising inflation in the US and lowering demand in Europe. Normally, these problems might be attenuated by lower commodity prices. But with no clear end in sight in Ukraine, global food and energy prices are likely to remain high in any
scenario. A recession in the US, especially if triggered by a cycle of interestrate hikes by the Federal Reserve, would curtail global import demand and trigger chaos in financial markets. And although recessions in Europe normally radiate globally mainly through reduced demand, a war-induced slowdown could radically shake business confidence and financial markets worldwide. How likely is each of these events? China’s growth trajectory has long been slowing, with only a combination of luck and mostly competent macroeconomic management preventing a severe downturn. But no amount of careful macroeconomic stewardship can save the day if the Chinese leadership has made the wrong call on COVID-19. Most Asian countries have now exited zero-COVID strategies and are moving on to regimes that manage COVID-19 as an endemic threat, but do not treat it as a pandemic. Not China. There, the government is spending massive sums to convert empty downtown office buildings into quarantine centers. Perhaps the new quarantine centers are a brilliant idea, providing a way to redirect China’s bloated construction sector toward more socially useful activities than piling more new projects on top of years of overbuilding (something that the International Monetary Fund
economist Yuanchen Yang and I warned of in 2020). Perhaps China’s leaders know something their Western counterparts don’t about the urgency of preparing for the next pandemic, in which case the quarantine centers could look positively visionary. More likely, however, China is tilting at windmills in trying to tame the increasingly contagious virus, in which case the centers will prove to be a vast waste of resources, and the lockdowns futile. The risk of a US recession has surely skyrocketed, with the main uncertainties now being its timing and severity. The sanguine view that inflation will decline significantly on its own, and that the Fed will therefore not have to raise interest rates too much, is looking more dubious by the day. With savings having soared during the pandemic, the more likely scenario is that consumer demand will remain strong, while supply-chain problems become even worse. True, the US government appears to be scaling down its stimulus policies, but that will increase recession concerns even if it helps mitigate inflation somewhat. And if stimulus programs continue full throttle – and, in an election year, why would they not? – it will make the Fed’s job even tougher. As for Europe, blowback from economic slowdowns in China and the US would have threatened its growth even
without the war in Ukraine. But the war has greatly amplified Europe’s risks and vulnerabilities. Growth is already weak. If Russian President Vladimir Putin resorts to using chemical or tactical nuclear weapons, Europe will be forced to cut the cord decisively, with uncertain consequences for both its economy and the risk of further escalation, which might mean imposing sanctions on China as well. Meanwhile, European governments are under considerable pressure to increase significantly their spending on national defense. Clearly, emerging markets and poorer developing economies will suffer mightily in the event of a global recession. Even energy and food-exporting countries, which until now have benefited economically from the war because of high prices, would likely have problems. With luck, the risk of a synchronized global downturn will recede by late 2022. But for the moment, the odds of recession in Europe, the US, and China are significant and increasing, and a collapse in one region will raise the odds of collapse in the others. Record-high inflation does not make things any easier. I am not sure politicians and policymakers are up to the task they may soon confront.
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Assessing ride-hailing services in Ghana Ride-hailing appeared in Ghana few years ago. Since, four major actors have been sharing this very lucrative market : Bolt, Uber, Yango and Accra Cab. Is the impact these actors have to facilitating urban mobility in Accra really visible ? In this article, based on answers provided by a representative audience of the population of Accra on the CINT consumer panel, we propose a line of thought based on four main axes : • The accessibility of services. • The state of competition; • The democratization of services Accessibility of services Studies have shown that the appearance of ride-hailing services of which Yango arrived to the market the latest in 2019, has greatly contributed to making the riding service offer more accessible, particularly in terms of tariffs. One point that clearly stands out in the opinion of those surveyed is the cost considered accessible for latest actors service offers. In fact, 71.4% of the 156
people surveyed believe that those services are within reach of any middle-class individual. Also, 22.2% of our panel think that even low-income people are able to afford ride-hailing services. This trend is confirmed in the over 45 age group, who are all convinced that a middle-class person can afford these services (100%). 60.1% think that ride-hailing service offer meets their quality requirements. Here again, women are definitely the most satisfied with the services offered (73.9%). Conversely, only 50% of the 45+ category think that services meet their quality requirements. At the same time most customers aged 45+ are convinced that since Yango arrival on the market, the offer has become more balanced and diversified. State of competition Ride-hailing market remains very competitive in Africa and in Ghana in particular, which is evidenced by a recent study which revealed that many Ghanaian users have at least two
applications of riding service providers on their mobile devices. Added to Bolt, Uber, Yango and Accra Cab are the popular so-called “Trotro” transports. Many users choose their service provider according to the route or itinerary and especially according to the time of day. The “Trotro” beats the competition at peak times. In the opinion of many users, it is more convenient to save time in traffic jams. The answers collected clearly showed that the ride-hailing market is dominated by Bolt 55.2% of people call it the most affordable service with Yango taking second place in the poll with 17.7% and Uber coming third with the 16.9%. The interesting part here however is that users who actually have used Yango are convinced that it’s tariffs are the most affordable from their first try (up to 41.3%). As for regular Yango users, they are definitely convinced - 60.7% of them calls Yango the most affordable service. With Uber and Bolt users the results are not that noteworthy. So
we guess that if you haven’t tried out Yango yet – it’s high time to make your first ride. The democratization of services Ride-hailing activity is highly dependent on ICTs. And in this regard, Ghana has a comparative advantage. Indeed, it is today the country with the highest mobile penetration rate in West Africa with 55%. The answers collected from users also confirms that the rate of Internet users via mobile terminals is changing at practically the same rate as that of users of taxi services. It is respectively 75.8% and 64.1%. Better still, these two rates are substantially equal for female users (73.9% and 75%). Taking the age categories into account, we note the highest rate of mobile Internet use in those aged 45+ (100%) and that of the use of taxi services in those aged 35-44 (68 %).
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Probable uses of collective investment scheme investment By Kwadwo Acheampong
Mutual funds and unit trusts have been popular investment vehicles in Ghana from the 1990’s. The lure of starting with little and being able to watch our investments grow as we add periodically to them has added to the growth of collective investment schemes in Ghana. Currently, there are about 46 mutual funds and 23 unit trusts in Ghana. Some of these were formed in response to the regulator’s order for all retail investments under GHS 100,000 to be pooled. Mutual funds have been the more popular of the two types of CISs, constituting more than double the number of unit trusts. Investors find CISs useful and important. It is relatively easy for any retail investor with only a small amount of money to subscribe to shares or units of a scheme and access the same kind of professional fund management services a large managed account would have. This is one of the biggest attractions. We shall look at a few uses of a scheme for an investor. The presentation may not necessarily be exhaustive. We may not have thought collective investment funds could be used like that but these are probable uses which could further enhance our everyday lifestyles. Invariably, all investments are borne out of needs and must have a purpose. Encourage savings and investments culture The very fact of easy of entry makes it ideal and inspiring for investors with little. I remember an advert that used to show on TV years ago: “Super Shell raffle, easy to enter, easier to win.” Investors can begin with very little, add on continually in small increments and watch them grow. For instance, let’s take a look at a young investor who can initially afford to set aside and invest GHS 10 monthly. After two years at an assumed investment interest rate of 15% p.a. compounded monthly, she would have contributed GHS 240 and earned GHS 41 to make GHS 281. Supposing she can increase her monthly additions every 2 years as her career progresses. For the next
two years, she can increase her monthly contribution to GHS 20. Her investment would be worth GHS 941. In another couple of years, at GHS 50 monthly, she would make GHS 2,676. If she increases her monthly additions to GHS 100 for two years and eventually GHS 200 for another two years, she would realise GHS 6,419 and finally GHS 14,275 in ten years of investing.
on the type of fund. Funds that have a significant portion of the holdings in high yield equities and bonds can provide growth to build wealth over time. This is especially true for funds that actively and aggressively trade. The fund managers constantly search for investment securities that offer high capital gains and constantly try to have an edge over the market with superior data
With a small amount initially, an investor can, therefore, aspire to have a significant amount after a while. This may not be possible or feasible with other types of investments. The fact that CISs can be invested in quite easily and the fact that piecemeal additions can be made are critical. For most types of investment securities, it may not be affordable or practicable to do so. The investor can even increase the additions or decrease them to suit their situation at any point in time. Increasingly, fund managers and administrators are also leveraging new technologies to facilitate investments in these schemes, especially for the small retail investor. Wealth Generation Given adequate time, collective investment schemes can serve as viable vehicles for wealth building. As seen previously, with just a little at the beginning and with consistency, we can build wealth over time. It may seem that CISs, because they offer diversification, are less risky and would not yield aggressive returns. Actually, it depends
and analysis coupled with quick trading. Obviously, this requires a very active fund manager with a lot of experience, the capacity to collect and analyse lots of relevant data and an instinct for great opportunities on the market. Collateral for lending CIS funds can be used to leverage capital from lending institutions. Holdings of units or shares in a fund, especially for one that is fairly liquid, can be used as collateral for a loan to start or expand a business venture. The investment is not impaired and the venture can pay back the debt while the investment in the scheme continues. If Mensah has a holding worth GHS 10,000 in a unit trust and wishes to invest GHS 8,000 in his electricals shop, he can approach a lender (a bank) and submit particulars of his investment to the lender for a loan of GHS 8,000 for 3 years. Supposing his shop is worth GHS 20,000. This would make his total worth GHS 30,000 (shop plus his unit trust holding). At an interest rate of 25% p.a., he pays back a monthly amount of GHS 994 to the bank. This he does with proceeds
from the shop while his unit trust investments still grow at 15%, say. At the end of the loan period, he would have paid off GHS 11,450 to the bank and seen his investment grow to GHS 12,480. His net worth would then be GHS 43,930 (GHS 20,000 + GHS 12,480 + GHS 11,450). Without the investment as collateral, he would have had to take the GHS 8,000 from his investment, leaving it at GHS 2,000. This would grow to GHS 2,496 at the end of the 3 years. His net worth after loan repayment would therefore be GHS 33,946 (GHS 20,000 + GHS 2,496 + GHS 11,450). This is the same idea that is employed in mortgage financing. It is usually much better to borrow to finance large capital-intensive ventures like buying a house or expanding one’s business. Every lender looks for credibility in the borrower. Collateral in the form of investments in funds could provide this line of security for the lender. It would ensure that, not only is the lender assured of repayment and be willing to lend; the lender would potentially be more amenable to a favourable interest rate for the borrower. Portfolio Management While CIS funds can be diversified, they can provide further diversification and an investor can use different funds in a portfolio construct to achieve a desired portfolio structure. For instance, an investor may initially invest in highly liquid funds to provide cover for emergency needs. Later, the investor may choose to add holdings in an aggressive growth fund to benefit from high yield and grow wealth. This could be balanced with investments in a more stable fund with time, to reduce risk. In a reasonable time, the serious investor would have built a portfolio of fund investments which would be geared towards meeting the investor’s objectives. In effect, the investor would be positioned to benefit from the good from any fund he or she is invested in. Additionally, a savvy investor could, with the help of an investment adviser, construct a portfolio that suits his or her needs at a particular time.
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WEDNESDAY, APRIL 27, 2022
Targeted investing Since these collective investment funds have different characteristics and objectives, the investor can use them to derive specific benefits with less money and risk. For instance, an investor desiring to invest for a short period and preserve capital, can invest in a money market fund. When the investor seeks to disinvest, she can be almost certain that, in the very least, inflation would not have eroded her investment. A parent with her child’s school fees (GHS 3,000) to pay in six months’ time can invest (assuming a net return of 15%) about GHS 2,797 now for six months. Likewise, an importer of spare parts who would expect to pay GHS 50,000 to clear goods at the port in 9 months’ time can invest just about GHS 45,024 for
9 months and easily disinvest to have the GHS 50,000 he needs. Better still, the parent or importer could invest less initially and add to the investment monthly to realise the objective at the end of the period. This flexibility becomes important because we usually may not have enough money to meet a particular need at an instance. However, with time, we could come up with additional money that could be equal, in total, to what is needed. A good plan to achieve a goal should serve us well. It is time to speak with our investment adviser to help you map out a careful plan to get us where we wish to or have to be. Many daunting tasks can be accomplished when little steps are taken and that is what collective investment schemes
can do for us. It is a good time to go to your investment adviser to sit and have a chat on how collective investment scheme investing can help meet our financial needs. Talk to us at OctaneDC.
13 educate his readers. Feel free to send him your feedback on this article: kwadwo.acheampong@ octanedc.com /+233 244 563 530
ABOUT THE AUTHOR Kwadwo Acheampong is Head Research at OctaneDC. Over the years, Kwadwo garnered experience in fund management and administration, portfolio management, management consulting, operations management and process improvement. Through his writings Kwadwo has discovered his love and knack to simplify complex theories spicing them with everyday life experiences to enrich and
How Shopa is Bridging the Gap between Informal Retailers and Suppliers in Africa
By Nana Akua Frimpomaa Amofa Ghana’s informal sector is estimated at $2.5 billion providing consumers with the essential goods. With over 95% of retail transactions taking place in the informal sector, the supply and distribution systems are set up for larger, formal retailers. Ghanaian retail-tech startup Shopa, is powering the next generation of informal retailers by digitising the informal retail space and connecting last-mile retailers with suppliers, and enabling access to stock on cash or credit. Founded in 2020, by Frank Nana Addae, Ulrick Chekap
and Michael Hammond, Shopa came at a time when Ghanaian businesses were looking for ways to leverage e-commerce and digital platforms. Shopa is what you will call an informal retailers marketplace making essential goods accessible to underserved communities. A B2B platform, Shopa leverages digital tools and a seamless delivery network to help informal retailers restock and receive delivery within four
hours. Shopa was launched to solve the challenges informal retailers faced in inventory sourcing, expenses incurred on logistics as well as lack of access to microcredit. A solution-oriented startup, Shopa connects lastmile retailers with suppliers after identifying the blockades they faced in restocking their goods and accessing credit facilities. This ensures retailers not only get stock but they can do so on credit or pay cash up front. Shopa relies on digital tools and a special integrated delivery network to
assist informal retailers to receive the merchandise and restock in 4 hours while they focus on selling. Shopa leverages an innovative, easy-to-use, convenient and affordable digital commerce solution. This move, according to Jane del Ser, Program Director for the Catalyst Fund Inclusive Digital Commerce Accelerator is “spurring the expansion of the digital commerce ecosystem in Ghana.” Business owners make
orders via SMS, WhatsApp, call center or web app, and have goods delivered straight to their shops. In under two (2) years, the startup has reached more than 3,100 customers, made almost 22,000 transactions, and it is inching towards other realistic milestones in the next few months which includes expansion plans to other regions in Ghana as well as other African countries. With partnerships with global manufacturers such as Unilever and Nestle, and local distributors
and suppliers like Parle and Far East Mercantile Ghana, and a preseed investment from MEST and grants from Google and Catalyst Fund, Shopa is on course to redefine Africa’s informal retail distribution and supply chain sector. Shopa aims to be the largest distribution platform on the continent. Shopa together with other players on the continent are “pioneering a new model of distribution.”
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WEDNESDAY, APRIL 27, 2022
WEEKLY MARKET REVIEW FOR WEEK ENDING - APRIL 14, 2022 MACROECONOMIC INDICATORS Q3, 2021 GDP Growth
7.0%
Average GDP Growth for 2021
5.4%
2022 Projected GDP Growth
5.5%
BoG Policy Rate
17.0%
Weekly Interbank Interest Rate
16.78%
Inflation for February, 2022
19.4%
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 retreated for the week on the back of a decline in the price of 1 counter. The GSE Composite Index (GSE CI) lost 0.68 points (-0.03%) to close at 2,696.67 points, reflecting year-to-date (YTD) loss of 3.32%. The GSE Financial Stocks Index (GSE FI) also lost 1.23 points (-0.06%) to close at 2,219.66 points, reflecting year-to-date (YTD) gain of 3.15%. Market capitalization declined marginally by 0.01% to close the week at GH¢64,040.47 million, from GH¢64,047.56 million at the close of the previous week. This reflects YTD decrease of 0.71%. Trading activity registered a total of 10,980,196 shares valued at GH¢10,983,012.32 changing hands, compared with 2,065,583 shares, valued at GH¢1,737,529 in the preceding week. MTN dominated both volume and value of trades for the week, accounting for 98.57% and 98.54% of volume and value of shares traded respectively . The market ended the week with no leader and 1 laggard as indicated on the table below.
THE CURRENCY MARKET The Cedi was flat against the USD for the week. It traded at GH¢7.1124/$, compared with GH¢7.1124/$ at week open, reflecting w/w and YTD depreciations of 0.00% and 15.55% respectively. This compares with YTD appreciation of 0.51% a year ago. The Cedi appreciated against the GBP for the week. It traded at GH¢9.1284/£, compared with GH¢9.2877/£ at week open, reflecting w/w appreciation and YTD depreciation of 1.75% and 10.97% respectively. This compares with YTD depreciation of 0.78% a year ago. The Cedi also strengthened against the Euro for the week. It traded at GH¢7.6674/€, compared with GH¢7.6790/€ at week open, reflecting w/w appreciation and YTD depreciation of 0.15% and 10.95% respectively. This compares with YTD appreciation of 2.14% a year ago. The Cedi again appreciated against the Canadian Dollar for the week. It opened at GH¢5.6380/C$ but closed at GH¢5.5915/C$, reflecting w/w appreciation and YTD depreciation of 0.83% and 15.20% respectively. This compares with YTD depreciation of 1.17% a year ago.
WEDNESDAY, APRIL 27, 2022
GOVERNMENT SECURITIES MARKET Government raised a sum of GH¢981.87 million for the week across the 91-Day, 182-Day and 364-Day Treasury Bills. This compared with GH¢777.59 million raised in the previous week. The 91-Day Bill settled at 16.78% p.a., from 16.33% p.a. last week whilst the 182-Day Bill settled at 17.42% p.a., from 16.32% p.a. last week. The 364-Day Treasury Bill on the other hand settled at 19.67% p.a., from 18.85% p.a. recorded previously. The table and graph below highlight primary market yields at close of the week.
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COMMODITY MARKET
BUSINESS TERM OF THE WEEK
Crude Oil prices slipped for the week, posting a weekly loss of nearly 3.12%, on the prospect of weaker global growth, higher interest rates and COVID-19 lockdowns in China hurting demand, even as the European Union considers a ban on Russian oil that would tighten supply. Brent futures traded at US$108.21 a barrel on Friday, compared to US$111.70 at week open. This reflects w/w loss and YTD gain of 3.12% and 39.12% respectively. Gold prices fell 2% for the week and was set for its biggest weekly decline since mid-March as signs of faster policy tightening by the U.S. Federal Reserve lifted Treasury yields and the dollar. Gold settled at US$1,934.30 from US$1,974.90 last week, reflecting w/w loss and YTD appreciation of 2.06% and 5.78% respectively. Prices of Cocoa declined for the week. The commodity traded at US$2,506.00 per tonne on Friday, from US$2,583.00 last week, reflecting w/w and YTD losses of 2.98% and 0.56% respectively.
Limit-on-Open (LOO) Order: A limit-on-open (LOO) order is a type of limit order to buy or sell shares at the market open if the market price meets the limit’s condition. This type of order is good only for the market opening and does not last for the whole trading day.
INTERNTIONAL COMMODITIES PRICES
Source: https://www.investopedia.com/terms/l/ limitonopenorder.asp
ABOUT CIDAN CIDAN Investments Limited is an investment and fund management company licensed by the Securities & Exchange Commission (SEC) and the National Pensions Regulatory Authority (NPRA).
RESEARCH TEAM Name: Ernest Tannor Email:etannor@cidaninvestments.com Tel:+233 (0) 20 881 8957 Name: Audrey Asiedua Wiafe Email:aaudrey@cidaninvestments.com Tel:+233 (0) 57 840 2700 Name: Moses Nana Osei-Yeboah Email:moyeboah@cidaninvestments.com Tel:+233 (0) 24 499 0069
CORPORATE INFORMATION CIDAN Investments Limited CIDAN House Plot No. 169 Block 6 Haatso, North Legon – Accra Tel: +233 (0) 26171 7001/ 26 300 3917 Fax: +233 (0)30 254 4351 Email: info@cidaninvestmens.com Website: www.cidaninvestments.com Disclaimer The contents of this report have been prepared to provide you with general information only. Information provided on and available from this report does not constitute any investment recommendation. The information contained herein has been obtained from sources that we believe to be reliable, but its accuracy and completeness are not guaranteed.
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Ghana could generate over US$ 78M annually from Yam export only using IPR Protection By Dr Courage Besah-Adanu Revenue generation and sources of development funding are the most topical issues dominating public discourses today in Ghana. Various development stakeholders are therefore required to assist policy makers in search of innovative solutions to the nation’s economic and financial heartaches. It is against this background that some of us working in the Industrial Property Right Protection space wish to uncover some low hanging revenue fruits that the nation could innovatively harvest. Geographical Indications (GIs) are signs used on products from a particular geographical origin with specific qualities or a reputation that are essentially attributed to the place of origin. This form of Intellectual Property, protects the uniqueness, reputation and other characteristics that easily differentiates a product from other similar ones on the market. GIs largely protects food and non-food products especially of rural origin. GIs increase revenues for local producers and satisfy the needs of conscious and demanding customers. The system facilitates the originality of producers and improve the quality of production using various branding tools, in the form of origin labelling and Collective Trademarks. Over 3,400 GI products have been registered within the EU, 320 in India and about 2,533 in China. Africa largely has potential products with few registered as GI products in Cameroon, Ethiopia, Morocco, Mozambique and Guinea. A worldwide study in 2018 on economic impact of GIs, showed that on the average, prices doubled (in some cases tripled) for products compared with similar products that are not GI registered. French GI cheeses are sold at an average of 2 euro per kilo more than French non-GI cheeses. French “Poulet de Bresse” (a type of chicken) has a market price 4 times higher than regular French chicken. Producers of Italian
“Tuscano” olive oil have managed to increase prices for their olive oil by 20% since it was registered as a GI in 1998. In other instances, the case of a traditionally notexport-oriented country like Spain is striking: in 1991 (5 years after accession to the EU), exports of GI products amounted to 443 million euro and in 1999 more than 1 billion euro. The Unique Case of Pona Yam as a Potential GI Product for Ghana The yam crop (Dioscorea spp.) is an important crop generating income for over 60 million people. Nigeria and Ghana are the leading producers in the world. Global yam production increased from 15.3 million tonnes in 1971 to 74.8 million tonnes in 2020. Ghana produces about eight million tons of yam annually. The country’s yam production has increased significantly over the period. In 2018 and 2019, production was about 7,858,209 and 8,288,198 metric tonnes compared with previous years. Yams from Ghana are mainly exported to the United Kingdom, South Africa, Italy and the United States. The main varieties exported include: #1. Pona, #2. Larebako, #3. Asana, #4. Dente and #5. Muchumudu. Although Nigeria produces high volumes of yam (over 70% of global production), Ghana exports more yam in the sub-region. There is continuous demand for fresh yam produce from West Africa in Europe, North America and in some parts of Asia. Global exports of Yam was valued at US$177M. As the lead exporter of Yam, Ghana has a world share of 22.1% with our export value to the global markets as at 2019 standing at US$39.1M. The unique characteristics of a product is critical in building a successful GI system. The exportable varieties of Ghanaian yams mentioned above are noted to be of high quality in both domestic and export markets, with the “Pona” variety mostly preferred due to its unique taste, the texture, and color of flesh after cooking. The characteristic taste is most preferred. Others include the origin, (which is
Ghana) and the size of the tuber as same sizes are carefully selected for the export market. These features form the “specific product quality”, which is key for a successful GI or origin product. The annual value of Agri-food products protected as GIs within the European Union as stands at €27.34 billion. Ghana can earn more than twice the current export value in foreign exchange from export of yam. The current export value of yam is about US$39.1M. The country could earn twice this current value for the same export volumes at same price if the Yams were protected with Geographical Indications. Having an origin label would augment prices on the global market at over $78M. It is highly projected that this figure would increase as the countries of export may drastically increase through the current arrangement within the international corridors of trade between Ghana and her partners within the intellectual property structures for origin labelling. The Industrial Property
Office of the Registrar General’s Department, has the overall mandate, to identify, develop, register and protect origin labelled products for Ghana. With the current existing legal environment, Ghana must as a matter of urgency, support the relevant agencies of state to harness this great opportunity to benefit the nation. To improve her food systems while creating lots of decent jobs and employment for the teaming youth. For more information, contact; Grace Issahque, (Chief State Attorney and Head) • Ghana Industrial Property Office, Registrar General’s Department, Accra • Email: graceissahaque@ hotmail.com Dr. Courage Besah-Adanu, • Intellectual Property Expert and a Consultant at the Ghana Industrial Property Office, General’s • Registrar Department, Accra • +233 20970 6619; • Email: kadanu2@gmail.com
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FAO Global Action for Fall Armyworm Control extended to end of 2023 with broader scope The Food and Agriculture Organization of the United Nations (FAO) is to extend its global drive against one of the world’s most invasive plant pests – fall armyworm – which is still destroying billions of dollars’ worth of crops despite progress and a raft of measures to tackle it. “Fall armyworm knows no boundaries and is continuing its rapid march across the globe,” FAO Director-General QU Dongyu told the Steering Committee of the FAO Global Action for Fall Armyworm Control today as it endorsed a move to extend its timeline to the end of 2023 and broaden its scope. As recently as 2016, only six African countries reported the pest, which devours dozens of different crops. Today, 78 countries in Africa, the Near East, Asia and the Pacific are reporting it. In Africa alone, fall armyworm is estimated to cause up to USD 9.4 billion in annual yield losses,
Qu said. The spread of fall armyworm is driving intensified pesticide use, putting human and environmental health at risk. In response, the FAO Global Action for Fall Armyworm Control is coordinating comprehensive measures across Africa, the Near East and Asia. • A functional coordination mechanism has been established across global, regional, national and farmerfield levels. • Integrated Pest Management (IPM) tactics have been tested in eight geo-zones with good results. • Maize hybrids tolerant to fall armyworm are now available from the International Wheat and Maize Improvement Center (CIMMYT) for testing and release in African countries. • Training efforts, in collaboration with government partners, have reached over 140 000
participants, mostly farmers and agricultural outreach workers. Reports on impact promising Reports on the impact of these measures are promising. In Burkina Faso, yield losses caused by fall armyworm are reported to be consistently at or below 5 percent since 2020, and biopesticides and biological control have shown up to 90 percent field efficacy against the pest. Despite these achievements, there are still challenges to be addressed. The pest continues to spread, exposing new farmers and their livelihoods; large-scale gatherings and trainings are still being impeded by COVID-19; IPM adoption and yield loss reduction is uneven from country to country; and use of hazardous pesticides persists. In response, an extension of the timeline for the Global Action to the end of 2023 has been
approved. The extension will enable increased dissemination of IPM technologies, and by increasing the Global Action’s scope, it will tackle multiple pest threats through sustainable plant health management, supporting the One Health Initiative. FAO launched the Global Action for Fall Armyworm Control (2019-2022) in December 2019 as an urgent response to the rapid spread of fall armyworm. The initiative complements ongoing FAO activities on fall armyworm. The Global Action has established a coordination mechanism enabling open and collaborative dialogue for sciencebased solutions, supports the establishment of National Task Forces on fall armyworm control, and helps mobilize resources for applied research and technical outreach.
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WEDNESDAY, APRIL 27, 2022
Elon Musk buys Twitter – So what now? By Social Media Today/Andrew Hutchinson In a surprising turn of events, Elon Musk now looks set to become the sole proprietor of Twitter, after Twitter’s board met on the weekend to vote on accepting his $44b takeover offer. Initially, it seemed that Twitter would rebuke Musk’s bid, even initiating a ‘poison pill’ mitigation process to stop Musk from acquiring the company through a share buy-up. But according to reports, Twitter’s board ultimately felt that they had little choice but to accept the billionaire’s offer – which means that Elon himself will now be the one setting the rules, and giving the green light on the way forward for the platform. So what does that mean? Well, no one knows for sure, likely not even Musk himself, who recently admitted that he’s still working through his plans. But we do have some pretty clear indicators about Musk’s intentions, ranging from restoring ‘free speech’ to combating bots. Here’s a look at Musk’s key areas of focus, based on his public statements thus far, and how he might go about tackling each. Restoring Free Speech Free speech has become the main focus of the Musk-Twitter push, with the Tesla owner publicly decrying Twitter’s past actions in silencing certain users. Musk has also criticized Twitter’s decision to ban former US President Donald Trump, while he’s also had his own share of issues related to his tweeted remarks and statements. Will Twitter take a different approach to such under Musk’s leadership? You have to suspect it will - but how, exactly, that will look is anyone’s guess. Musk’s main contention here is that by taking Twitter into private ownership, that will enable it to be more free in what it allows, as it won’t be beholden to shareholders or advertisers in this respect. But ads, of course, are Twitter’s key money maker – in looking at Twitter’s Q4 21 results, ad sales made up the vast majority of Twitter’s revenue intake. Then again, under private ownership, Twitter won’t be under the same revenue pressures, in terms of increasing revenue and improving performance in line with shareholder expectation. But Elon’s still paying $44 billion for the company. You would assume that he would like to recoup at least some of that expense. So what would be a profitable revenue target for the platform? Looking at Twitter’s numbers, it’s still paying some high operating costs, with the company reporting an operating loss of $493 million for FY 2021. That means that, while Twitter
brought in $5.08b in revenue for the year, it actually paid out $5.5b in costs. Some of these expenses were onceoffs (like a ‘one-time litigation-related net charge of $766 million’ due to a shareholder class action), but breaking them down into individual elements, some of Twitter’s key costs for 2021 were: • Research and Development - $1.2b • Sales and Marketing – $1.2b • General and Administrative - $584 million Taking into account cloud and other infrastructure costs, you’re looking at a baseline operational cost of at least $3b-$4b, so at a bare minimum, Musk will need to generate at least that to avoid it costing him money, and without ads, that’ll be a tough ask. So how will Musk do it? I suspect this is the answer: Musk’s view is that by authenticating real people, and giving them a checkmark, that will lessen the impact of bots (another of his key focus points), and forcing people to pay for Twitter Blue, at $3 per month, could be the way that he does it. But would people actually pay for Twitter? Does anyone actually need the app that much that it would justify a $3 per month charge? Right now, very few people are signing up for Twitter Blue, with the lure of a few custom color options and ‘undo tweets’ really not moving the needle for regular users. But if Musk cut everyone off, unless they paid the fee, maybe that would get more people to actually payup - and if a lot of prominent users did end up paying, that would then entice others to sign on, so they don’t miss anything. At present, Twitter has 217 million daily active users, which, if they each paid $3 per month, would bring in $7.8b in annual revenue for the app. Of course, not all of these users are going to pay, but I suspect also that Twitter is actually a very important tool for those that do use it, even if its user numbers pale in comparison to Facebook or Instagram. Let’s say only half of these people sign on – that’s still $3.4 billion in annual revenue, without ads, and with Musk also vowing to cut costs, by either getting rid of Twitter’s San Francisco HQ or eliminating salary for board members, there could be ways to make this a workable option. But it’d be a big risk. If Elon decided to lock every non-paying user out, that could also see conversations move to other, free networks instead, which could leave Twitter with nothing, and reduce his $44 billion investment to zero very fast. But I do think it could work, and if Musk can also add new features, as he says, to make that $3 monthly investment even better, Twitter could become a hub for more engaged, active and accountable conversation very fast. And as I say, I suspect a lot
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of media folk, at the least, would be willing to pay to engage in that group chat. This is the kind of bet that I think Musk will take, and while it could reduce Twitter’s presence in the social media sphere, by lessening its user base, it could still ensure that it remains a relevant, valuable entity, and potentially a profitable one for Musk longer term. And ultimately, that could also be Musk’s pathway to free speech. With every user registered and accountable, and only paying users able to get into the app, that puts more onus of responsibility onto each contributor, while trolls wouldn’t so easily be able to make new accounts just to attack and harass others. It would be free speech with accountability - which may not be exactly what free speech advocates have been calling for. But it seems like one of the only viable ways for Musk to achieve some of his key, stated goals here. Open Sourcing the Algorithm Another element of Musk’s Twitter takeover push has been algorithmic transparency, and giving users the opportunity to understand, and even control, how the system decides what’s most relevant to them. As per Musk: “Any changes to people’s tweets - if they’re emphasised or deemphasised - that action should be made apparent, so anyone can see that that action has been taken so there’s no sort of behind-the-scenes manipulation, either algorithmically or manually.” Twitter’s already exploring through its ‘bluesky’ initiative, and the concept that regular users could have a better understanding of such systems does make sense - though the complexities may well be lost on us non-coders and regular folk (i.e. the vast majority of Twitter users) who just want to check out the latest tweets. A key risk on this front is that by opening up its algorithmic parameters, Twitter would enable users to identify key aspects that they may want to emphasize or not within their experience. Which makes sense for, say, eliminating mentions of ‘The Kardashians’ from your feed, but what if you wanted to eliminate ‘Liberal bias’ or other elements that could contribute to the echo chamber effect?
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It could also lead to new qualifiers being built into algorithms that may not deliver pleasant, or even legal results. TikTok, for example, has faced criticism in the past over its efforts to suppress posts from users with ‘bad teeth’, ‘big bellies’, physical disabilities, and more. The fact that this is even possible suggests that TikTok’s system is able to categorize content based on such parameters, and with those types of options in place, that could lead to some concerning use cases in the app. It’s not an easy road, and Musk will have his work cut out on this front, but again, Twitter is already moving on this path, and Musk’s impetus will likely see the bluesky project develop a lot faster. Eliminating Bots Musk is also keen to eliminate bots, which, as noted above, a new checkmark system for all users could assist with in many ways. Twitter’s been working to address its bot problems for years, though the view is that it could do more, with bot accounts seemingly easy to identify for most users. The question in the past has been whether Twitter actually wants to tackle bots, or whether it’s more beneficial for the platform to continue counting them as ‘active users’. With market pressure on Twitter to boost usage numbers, maybe, by turning a blind eye to some of these bot profiles, that helps to prop up those figures. Going private eliminates that emphasis, and Twitter could, at least theoretically, now take stronger action on bot accounts. It seems like Musk will be pushing for that, and it’s another area that Twitter has been developing, while a shift to increased accountability for all human users will, again, be of benefit here. These are the three key pillars of Musk’s Twitter push - or at least, the ones that we know of thus far, and it does seem like these will be the focal points of his platform leadership when he takes over at the helm of the app. Which could be soon, and while the deal is still subject to various approvals and processes, it does seem that we’ll find out very quickly what Musk’s plans are for the app. – Andrew Hutchinson @ adhutchinson