Tesla shares slide could put Musk’s Twitter takeover 05 at risk
Central African Republic becomes 2nd country to adopt Bitcoin 05
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BUSINESS24.COM.G H | FRIDAY, AP RIL 29, 202 2
MTN and Vodafone sign national roaming 03 agreement
US$9.3bn needed to meet infrastructure target by 2030 By Eugene Davis
Absa Bank unveils winner of premier league promotion news membership
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The Deputy Resident Representative of the United Nations Development Programme (UNDP), Sukhrob Khoshmukhamedov, has revealed that for Ghana to attain the Sustainable Development Goals (SDGs), an annual infrastructure investment by the government will need to reach about US$9.3billion by 2030. “Ghana is increasingly looking for ways to close the infrastructure gap. The private sector is seen as a key partner in the
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attainment of infrastructure development outcomes. The Global Infrastructure Hub (GIH) estimates that in for Ghana to facilitate the attainment of the SDGs, annual infrastructure investment will need to reach USD 9.3 billion by 2030,” he said at the GIPC/UNDP Breakfast Meeting on SDG Investor Map Utilisation; Identification of Opportunities in Housing and Infrastructure in Accra.
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New homes for civil servants plausible The Chief Director at the Ministry of Works and Housing, Rev. Stephen Yaw .Osei, has announced that government will soon roll out a district housing scheme, with 500 units of houses to be constructed for professionals in all the sixteen regions of the count. He also said that the rent law, which was under review has been approved by Cabinet but presently before the Attorney General’s department. It is hoped that sometime this year, it will be brought to parliament for it be passed. These are among a raft of measures from the government to fix the nation’s housing problem by exploring the option of allowing Ghanaians to access decent and safe homes. “We are talking to the Controller and Accountant General, where monies will be deducted at source, so if you are professional and you are posted to a region, you can have a place.” The new interventions are an addition to an earlier announcement by the sector minister of a strategic public-private partnership that will birth a new affordable housing scheme for people
outside the mortgage bracket. Real estates experts have long implored real estate actors to support these efforts to bridge the yawning housing gap in the country. Ghana’s housing deficit is estimated at more than two million units and continues to rise due to population growth, urbanisation, rising incomes and shrinking household sizes. Heightening the situation is the absence of a workable state policy on rent, which has seen most average Ghanaians in search of decent accommodation spend a chunk of their earnings on exorbitant rent payments. Sadly, the state is not in the position to put the situation under control as property owners and landlord cite the ballooning cost of building raw materials as the basis for their skyrocketing rent. These situations make the new announcement from the ministry very plausible and timely
US$9.3bn needed to meet infrastructure target by 2030 starts from page 1
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According to him, despite government’s commitment to increase investment in the sector, there is the need to create an enabling environment to attract private investments for expansion in the infrastructure sector. While initiatives such as the National Housing and Mortgage Fund, the ‘Year of Roads’ among other initiatives are commendable, there is still space for investment to build and improve infrastructure across the country. The Deputy Resident representative indicated that there are several potential opportunities for the private sector to invest in the areas of real estates, water and sanitation, roads, and waste management as well as recycling of waste. He indicated: “There are many opportunities for investment in the real estate area especially when it comes to the area of alternate building materials. Some areas such as the recycling of plastic into building blocks is one of such areas. The goal must be to increase housing units at affordable prices for the average Ghanaian.” Silvia Sefakor Senu, an Economic Analyst at the UNDP further told Business24 in an interview that “investments from local sources, foreign direct investment sources are needed
to inject life and attain the goals that Ghana has set for itself in the Ghana Infrastructure Plan but also the SDGs. “If we are talking about US$9.3bn and in a lifespan of three years we have contributed about US$20m, that means that the gap is really wide, so looking at these concerted efforts is required; local,private and foreign investors. Meeting has provided platform for dialogue to happen and shape policy. You need policies, interventions to get into the provision of accommodation, ”she added. 70% cannot own a home According to the Chief Director at the Ministry of Works and Housing, Rev. Stephen Yaw Osei, statistics show that approximately 70percent of Ghana’s urban population will require some form of government assistance to access to decent housing. He maintained that investment in safe, secure and affordable housing stock is essential for shelter, health and increased productivity. Rev. Osei also announced that government will soon roll out a district housing scheme, with 500 units of houses to be constructed for professionals in all the sixteen regions. “We are talking to the Controller and Accountant
General, where monies will be deducted at source, so if you are professional and you are posted to a region, you can have a place.” The Chief Director, also touched on the rent law, which he said was under review and has been approved by Cabinet but is presently before the Attorney General’s department and is hopeful sometime this year, it will be brought to parliament for it be passed. CEO of GIPC, Yofi Grant underscored the significance of the sector by stressing that the housing and manufacturing sectors have significant impact on all other sectors and have great connectivity to other parts of human endeavours. “It is pertinent we have conversations on the housing and infrastructure sectors to generate ideas for policy formation. In the near future, there will be new direction for the mortgage sector as the Ministry for Works and Housing is working to bring on board new players in the mortgage industry.” The CEO of National Home Ownership Fund, Dela Zumanu stated that government has piloted a housing project that has worked and is partnering financial institutions to deliver affordable homes to those that need it.
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MTN and Vodafone sign national roaming agreement MTN Ghana and Vodafone Ghana are pleased to announce significant progress in the bid to implement a national roaming service in Ghana amongst operators. In this regard, MTN Ghana and Vodafone Ghana have entered a strategic partnership to pilot national roaming in the Volta Region as a first step to a broader nationwide national roaming partnership. This agreement will see Vodafone Ghana expand coverage of its network by leveraging MTN’s network infrastructure in this pilot phase. National roaming implementation in Ghana is intended to facilitate universal access and accelerate digitalization in line with the country’s ambitions of a digital economy. This pilot is a first step to a bigger plan by Government to have a full national roaming regime amongst all operators in the country. Ms Patricia Obo-Nai, CEO of Vodafone Ghana in a statement said, “The implementation of national roaming will enable Vodafone Ghana customers to stay connected in areas outside our current locations of coverage. This is especially important for rural communities as national roaming invariably provides a greater choice of network providers. We
Selorm Adadevoh, CEO-MTN GH
Patricia Obo-Nai, CEO of Vodafone GH
believe strongly that the collaboration in the Volta Region is a positive step, and working together with the Government, the regulator and MTN Ghana, we look forward to extending the national roaming service beyond the Volta Region in due course.” “This agreement is a milestone for the industry and is in line with our Ambition 2025 strategic intent of “Leading digital solutions for Africa’s
progress” CEO of MTN Ghana, Selorm Adadevoh, said. “MTN fully supports the Government’s National Roaming plans. We acknowledge that national roaming will extend network coverage for Ghanaians nationwide and support the growth of the Ghana Telecommunications industry. Our Engineers have worked tirelessly to test and develop solutions to various
challenges encountered along the journey and we are excited about what lies ahead in this partnership with Vodafone Ghana.” Selorm added. In a joint statement, the two companies said over the coming months, the outcome of the pilot would be instrumental in the development of the next phase of the partnership to cover more complex technical configurations for nationwide roaming on either network, adding “We would update the market in due course.” “We take the opportunity to thank the National Communications Authority (NCA) for their support and engagement through the process, and for their approval for us to proceed with this pilot. We also thank the Ministry of Communications and Digitalization for putting in place the policy framework to support such a partnership for the industry at this stage of the Ghana Telecommunications industry evolution. We are confident that this is just one of many forward-looking policies to come to safeguard the viability of the industry into the future,” the statement concluded.
Absa Bank unveils winner of premier league promotion Absa Bank Ghana has unveiled the winner of its English premier league customer promotion dubbed, the “Card Assist campaign.” The promotion was launched last December to encourage customers to take advantage of the bank’s contactless cards in managing their transactions seamlessly, with lots of prizes at stake as well. The “Card Assist” campaign was also in alignment with the bank’s alliance with the English premier league (EPL), for which it is the official banking partner on the African continent. The winner, Jamil Marwan Maraby, emerged as the customer with the highest number of card transactions in value and volume during the duration of the promotion. He is presently the Marketing Director of the Ghana Football Association (GFA) and has been a customer of the bank since he was a teenager. At an exclusive EPL match viewing event organised for
life.” Apart from the match viewing event, Mr. Maraby received a Home Entertainment system, with a big TV screen and signed sports paraphernalia from the English premier league. Commenting on his prize, Jamil Maraby said: “I thank the bank for giving me the opportunity to celebrate such a great day with my friends and family. Absa has been a very important part of my personal and professional life and it is always fulfilling to know that I can count on them in any area related to financial empowerment and support.”
the winner at Kempinski Gold Coast Hotel, Charles Addo, Retail Banking Director at Absa Bank said: “The promotion was one way of bringing our customers closer to the products and services that make their lives easy and convenient. Jamil has a
long history of association with the Bank, dating back to a time when he was literally in his teens. This is a demonstration of our commitment to stand beside our customers every step of their journey and to ensure that we are able to bring their possibilities to
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Central African Republic becomes 2nd country to adopt Bitcoin The Central African Republic (CAR) has approved Bitcoin as legal tender - just the second country to do so. CAR is one of the world’s poorest countries, but is rich in diamonds, gold and uranium. It has been wracked by conflict for decades and is a close Russian ally, with mercenaries from the Wagner Group helping fight rebel forces. Lawmakers voted unanimously to adopt Bitcoin as legal tender, said a statement from the CAR presidency. The move puts CAR “on the map of the world’s boldest and most visionary countries”, it said. El Salvador became the first country to adopt Bitcoin as an official currency in September 2021 - a move criticised by many economists, including the International Monetary Fund, which said it increased the risk of
financial instability. Others have raised fears that cryptocurrencies such as Bitcoin could make it easier for criminals to launder money, and that they are environmentally damaging because they use so much electricity to generate. The internet is needed to use any cryptocurrency but in 2019, just 4% of people in CAR had access to the web, according to the WorldData website. The country currently uses the French-backed CFA franc as its currency, along with most other former French colonies in Africa. Some see the adoption of Bitcoin as an attempt to undermine the CFA, amid a contest for influence over the resource-rich country between Russia and France. “The context, given the systemic corruption and a Russian partner facing international sanctions, does encourage suspicion,”
French analyst Thierry Vircoulon told the AFP news agency. In the capital, Bangui, the response was mixed. Economist Yann Daworo told BBC Afrique it would make life easier, as transactions can be made with smartphones and it was easy to convert Bitcoin to any other currency. “Businessmen will no longer have to walk around with suitcases of CFA francs that will have to be converted into dollars or any other currency to make purchases abroad,” he said. He also argued that the CFA was not being used “to benefit Africa”. There are growing calls in several countries for the currency to be dropped by those who see it as a relic of the colonial era, enabling France to continue to exercise economic control. However, computer scientist Sydney Tickaya said he
thought the adoption of the cryptocurrency was “premature” and “irresponsible”. “Internet access is still underdeveloped in the country while Bitcoin depends entirely on the internet,” he said, adding that the CAR had more pressing issues such as security, education and access to drinking water. The CAR has suffered from ongoing conflict since its independence in 1960. In 2013, mainly Muslim rebels seized control of the largely Christian country. Self-defence militias were formed to fight back, leading to widespread massacres along religious lines. After President FaustinArchange Touadéra came to office in 2016, the country started shifting its strategic alliance from France towards Russia. bbc.com
Tesla shares slide could put Musk’s Twitter takeover at risk Tesla shares have fallen after investor concerns that boss Elon Musk may have to sell shares in the electric car maker to help pay for the takeover of Twitter. Tesla had more than $125bn (£99.3bn) wiped off its market value on Tuesday. One analyst said the slump in Tesla’s value may pose problems for a $12.5bn loan Mr Musk has secured against his stake in the company. The issues highlight the challenges he faces as he tries to run five firms. Tesla’s share price has taken a hammering, with some investors wondering whether Mr Musk’s Twitter purchase is bad for Tesla. Shares dropped 12.2% from just over $1tn to $906bn. Some are now asking whether Elon Musk, by trying to buy Twitter, may have bitten off more than he can chew. Mr Musk is a famous workaholic. In 2019 he was asked on Twitter whether it was true that he worked 90-hour weeks. “In recent years, hours were much higher”, he said. “I don’t recommend it though - bad for health and happiness.” Mr Musk runs Tesla, the most valuable car company in the world. He also heads up Space X, a company that designs, manufactures and launches advanced rockets and spacecraft. He also founded the Boring Company, that looks to revolutionise transport through tunnelling and Neuralink, with a mission to connect humans’ brains with computers. That is already a lot to think about. Now Mr Musk is looking to take
on one of the hardest jobs in Silicon Valley - the new owner of Twitter. Twitter isn’t a normal technology company. It is a news generating machine which is influential around the world. Influencers are on TikTok, world leaders are on Twitter. And if you think Twitter’s impact is consigned to the West, think again. Twitter’s most followed global leader by a country mile is India’s prime minister, Narendra Modi. But Twitter’s huge influence comes with huge challenges. As the global “town square” for debate, Twitter has to decide how to moderate the platform. Mr Musk says he is a “free speech absolutist”. But make no mistake, the platform will still need to be moderated. On Tuesday, he clarified what he meant: “By ‘free speech’, I simply mean that which matches the law” he said. But there are real problems with that definition. For one, the law is different in different countries. It is also often difficult to know whether a tweet breaks the law in real time. Did tweets encouraging the storming of Capitol Hill in Washington cross the line into insurrection? Where does criticism become libel? When does hate speech directed towards someone become abuse or harassment? In February, I interviewed the chief executive of Gab, Jason Miller. He’s Donald Trump’s former spokesperson, and now heads up a “free speech” alternative to Twitter. And yet Gab has a load of rules on
what you can and can not say. “I spend a lot of time on moderation policy, it’s probably what I get enquiries from people about the most”, he said. So Mr Musk is going to have to spend an awful lot of time thinking about, and resource the policing of Twitter, whatever happens. Twitter has some other fairly significant structural problems. Unlike its Silicon Valley peers like Facebook or YouTube, Twitter has never been very good at making money from the platform. Mr Musk believes he can turn that around. But that will take time and effort. And some are now wondering whether he has the time to be able to do that without hurting the other companies he runs. “Unless Elon Musk has invented a way to add hours to the day, there’s just only so much time that he can devote to all of this.” says Tim Higgins, author of Power Play: Tesla, Elon Musk, and the Bet of the Century. “I would imagine that in the next few months, years, he’s going to be deeply in the weeds of Twitter. And if you’re an investor in Tesla, you’re probably a little nervous about that,” Mr Higgins said. Tesla shareholders are also concerned the deal could mean his selling off a stake in the car firm. As part of the deal he has to stump up $21bn in equity himself. It is not yet clear where this money is coming from. The rest of the money is being raised by loans using Mr Musk’s assets as collateral. It means that if Tesla shares begin
to tumble, it could scupper a deal that is structured around the intrinsic value of those shares. “If Tesla’s share price continues to remain in freefall that will jeopardise his financing,” Oanda senior market analyst Ed Moya said. Mr Musk is not the first entrepreneur to found multiple companies. Steve Jobs co-founded Apple and Pixar. Jack Dorsey was chief executive of Twitter and Block. But to run five companies means entrusting others to effectively run the businesses on your behalf. And that rubs up against Mr Musk’s nature - who is a self-proclaimed “nano-manager”. Last year, he said he didn’t want to be chief executive of Tesla. I asked him why. He told me he didn’t want to be chief executive of anything. That may be true. But he most certainly wants to be involved in the day to day running of these companies. His biographer, Walter Isaacson, said on Tuesday that Mr Musk was working at Space X when the Twitter bid was accepted. That evening he attended a 10pm meeting about engine design. “He spent more than an hour working on valve leak solutions. No one mentioned Twitter. He can multitask,” he said. That Mr Musk can multi-task is without question. But will be able to spin so many plates at once, without them all coming crashing down? Source: bbc.com
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We are committed to championing a sustainable export led economy – Ghana Exim Bank The Chief Executive Officer of Ghana Export-Import Bank (GEXIM), Lawrence Agyinsam, has reiterated the bank’s commitment to supporting the Government of Ghana’s quest for a feasible and sustainable export led economy in line with the bank’s mandate to facilitate the transformation of Ghana’s economy into an export one by supporting and developing trade between Ghana and other countries. Mr. Agyinsam gave the assurance on Tuesday, 26th April 2022 when GEXIM relaunched its popular “Tuesday Market”, an initiative to create awareness for Made-In-Ghana products and harness their potential for exports. The event took place at the World Trade Centre in Accra with an exhibition of Made-InGhana products. He indicated that the “Tuesday Market” initiative is in line with the president, His Excellency Nana Addo Dankwa Akufo-
Addo’s vision of industrialising Ghana and positioning it as an industrial hub across the West African sub region. According to him, the initiative will go a long way to help change the situation of Ghana always exporting raw materials, rather, add value before exporting. “For this reason, the management and board of Ghana Exim Bank thought of a novelty in the country to make sure this is actualised and implemented. In doing this, we can then give opportunity and hope to entrepreneurs and make local industries competitive. We focus on four thematic areas, which are produce, promote, purchase and prosper”, Mr. Agyinsam emphasised. He further stated that “we encourage entrepreneurship by investing in entrepreneurs, promote their products for both local and foreign consumption and encourage Ghanaians to
choose local over foreign goods to help local businesses to grow. If we are able to do these, the economy will grow, which ultimately will make the nation prosper”. Dignitaries that attended the relaunch of “Tuesday Market” included the Minister of Information, Hon. Kojo Oppong Nkrumah, Deputy Minister of Trade & Industry, MSME, Hon. Nana Ama Dokua Asiamah-Adjei, H.E Javier Gutiérrez, Ambassador
of Spain to Ghana, H.E Abel Antonio Cárdenas Tuppia, Ambassador of Peru to Ghana and H.E Tamás Endre Fehér, Ambassador of Hungary to Ghana, Others were H.E. Jean Claude Galea Mallia, High Commissioner of Malta to Ghana, H.E Claudia Turbay Quintero, Ambassador of Colombia to Ghana and Luís Miguel Veral Contreras, Market Anylist, Economic & Commercial Office, Embassy of Spain in Ghana.
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E-Levy should be special purpose
By Frederick Affum
The Electronic Transfer Levy, popularly referred to as E-Levy, as assented to on March 31, 2022, is said to be imposed on electronic transfers to enhance revenue mobilisation by broadening the tax base and providing for related matters. The act regulating the Electronic Transfer Levy Act, 2022, Act 1075, (E-Levy) spells out its management, collecting authority, payments, recovery and submission of reports, just as other existing national levies. At a 1.75 rate previously, it was estimated to raise approximately GH¢6.9 billion annually for the nation, which has been argued by the former Minister of Finance, Seth Terkper, to be immaterial to overcoming the anticipated deficit gap of GH¢37 billion by the end of the year 2022 (Business and Financial Times Online, 2021). Govt levy According to Brian Bass in 2017, “A government levy is a distinct tax imposed on citizens to cover budgets related with routing the business of running towns, states or countries through referendums or laws.” It represents an obligatory imbursement by a certain group of persons to fund an associated public amenity and is typically collected by a government or an agency formed by the government (Fingleton, 2005; Oyedele, 2014). Commonly, the policy in managing taxes is to require all proceeds collected by the government to be paid into a collective or consolidated fund first, after which payouts are made according to law and budgetary apportionments, which is the case of the E-Levy. However, there also exist occurrences where special funds are established for special taxes or levies to be paid into, for specific government agendas, and this is often associated with the setting up of boards or other establishments to direct the raising of the levy and its application to the distinct purpose concerned. In this way, government actions are lifted in such establishments, with probable consequences of lessening political interferences (Fingleton, 2005). The latter is the approach of Special Purpose Levies (SPLs), which I wish to suggest E-Levy must be similarly fashioned. I believe Act 1075 might not be detailed enough in realising its intended purpose or the government’s aim; and also in ensuring accountability and sustainable resources in national development regardless of the government in power. For instance, the act states that the E-Levy is imposed to “enhance
revenue mobilisation”; which could only mean to improve, augment, increase, boost, supplement or complement all existing efforts bringing in income into coffers. Taxation has always been a traditional way by which governments raise funds to finance their activities from their citizens or entities (Fritz et al, 2022), and by merely increasing it won’t be a “purpose” enough for the imposition which caused chaos in Parliament (Graphic Online, 2021). Specific purpose Detailing a specific purpose of the E-Levy to meet a special demand will be key in the administration and future of the tax. Taking a cue from the Energy Sector Levy (ESLA), it was imposed to specifically combine all prevailing energy sector levies for their resourceful use, pay legacy debts and other obligations within the energy sector, enable maintainable longstanding investments and provide for related matters (Energy Sector Levies Act, 2015; ESLA Report, 2016). Other specific taxes for specific purposes are the Energy Debt Recovery Levy to precisely take care of debt recoveries, Price Stabilisation and Recovery Levy to be used as a buffer for under-recoveries and to ensure steady petroleum prices and
merging already existing levies, such as the Road Fund Levy to maintain roads, Energy Fund Levy to support the Energy Commission of Ghana, Public Lighting Levy to finance the running of community lights and maintain public and traffic lights, and National Electrification Scheme Levy to fund national electrification plans (Energy Sector Levies Act, 2015). We can likewise talk of the Financial Sector Recovery Levy, also paid into the Consolidated Fund and collected by the Ghana Revenue Authority (GRA) and specifically imposed on banks to raise revenue to provide funding for the financial sector restructurings and to provide for related matters (Financial Sector Recovery Levy Act, 2021); the COVID-19 Health Recovery Levy on the supply of goods and services and imports to raise revenue to support COVID-19 spendings and other associated matters (COVID-19 Health Recovery Levy Act, 2021); and the Sanitation and Pollution Levy under the ESLA. Needs SPLs meet special needs for longterm investments, arm sectors against the instabilities of national budgets, help kindle a more effective administration by government agencies and permit better oversight
on spending. Disadvantages such as corruption, the trapping of funds which could have been used for a more beneficial investment and occasionally averting superlative apportionment of government budgets (Fingleton, 2005) could be the reason for formulating the E-Levy in its current form. I suggest it should be a special purpose levy considering the current trend of government spendings (Bloomberg, 2022; Trading Economics, 2022) and the lot of government policies or agendas that need some kind of financial backbone to aid their execution (Agenda 111, Free SHS, 1D1F etc). This way, Ghanaian subscribers to the E-Levy can concretely ascertain what they are paying for. By narrowing the purpose of the E-Levy and sensitising the public Ghanaians would be more amenable to the payment of the levy, contrary to the current situation where a lot of Ghanaians are withdrawing their funds from their Momo wallets. The writer is an accountant, independent researcher and author. E-mail: frederickaffum@yahoo.com
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Will Western sanctions change the global financial system? By Howard Davies Faced with the horrors of Russia’s invasion of Ukraine, and recognizing the limited military options open to them, Western governments understandably deployed their economic and financial arsenal. Such sanctions have been imposed on errant countries before, of course, with varying success, but not to anything like the same extent as against Russia now. Notably, the United States and its allies seized much of the Russian central bank’s foreign-exchange reserves, and cut off some Russian banks’ access to the SWIFT financial messaging system for international transactions. The world has learned a new word – “deswifting” – and the financial system has been weaponized as never before. It is too early to assess the impact of the sanctions against Russia; there is no sign yet of a decisive effect on President Vladimir Putin’s regime or its policies. But the longer-term damage to Russia’s economy will probably be considerable. At the same time, the consequences of the current Western-led sanctions will not be limited to Russia and Belarus, their direct targets. Other countries are asking whether they, too, might find themselves cut off from the dollar-based financial system if their governments cross a US red line. Saudi Arabian
policymakers are concerned, and China has been anxious for some time about its vulnerability to US financial sanctions. I do not know whether there is a Mandarin ideogram for deswifting. But Zhou Xiaochuan, the former governor of the People’s Bank of China, has talked about the risk to China of US sanctions, and advocated defensive measures to increase the use of the renminbi in global markets. Others have openly asked whether any Chinese move against Taiwan would trigger similar sanctions from the West. In recent years, China has taken steps to mitigate this risk. For example, it has established its own CrossBorder Interbank Payment System, which has the same messaging format as SWIFT, to offer crossborder renminbi settlement among its members. CIPS has grown rapidly, with some active participation from major Western banks, although the volume of transactions processed through it before the Ukraine war was still less than 1% of the SWIFT volume. While that number will likely increase as Russian banks cut off from SWIFT seek to use CIPS as a substitute, their transaction volumes will be too small to make a significant difference. Although CIPS has so far not seriously threatened Western
payment systems’ global hegemony, China’s development of the digital renminbi could have a greater impact. Many central banks are exploring the possibility of introducing a digital currency (Sweden, where cash is rapidly disappearing, is further advanced than most); but among the bigger economies, China is ahead of the game. The Bahamian “sand dollar” can lay claim to being the world’s first fully digital central bank currency, but one suspects it will not seriously rival the greenback. Western central banks are moving cautiously on digital currencies. There are technical issues to resolve, as well as serious privacy concerns. Citizens may not welcome the idea that the central bank can monitor every penny they spend. Those considerations do not much concern the PBOC. A recent Hoover Institution report on the prospects for the digital renminbi describes it as “a staggering enhancement of authoritarian control.” But, from a Western perspective, the international implications are more serious than the internal control issues. Chinese leadership in digital currencies could significantly increase cross-border use of the renminbi, and countries participating in China’s Belt and Road Initiative are now being “encouraged” to use it. The Hoover Institution report, written
just before the war in Ukraine, argues that the ability of the US to wield financial sanctions effectively would be diminished if China succeeds in promoting, through its digital currency, the “yuanization” (another new word to me) of global trade flows. The US is well ahead in the development and promotion of private cryptocurrencies – speculative vehicles with high transaction costs that offer the prospect of higher returns for savvy speculators. China, on the other hand, leads in cheap payment systems that reduce the cost of cross-border transactions for individuals and businesses in the real economy. There could be a lesson there. The death of the dollar has been predicted many times, of course, and though the greenback’s share of global foreign-exchange reserves has fallen from 71% in 2000 to just under 60% today, there are currently few signs of its demise. But the increased use of financial sanctions as a weapon of war has created a new incentive for China and other countries to explore ways to minimize the impact in the event that similar measures are used against them. The longer-term consequences for the global financial system could be far-reaching.
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3 countries seek cyber security support from Ghana THREE African countries; the Gambia, Sierra Leone and Mozambique, have called on the Cyber Security Authority (CSA) for support to develop cyber security in their respective countries. Officials of the cyber security institutions of the three countries made the call on the sidelines of the African Union (AU) - Global Forum on Cyber Expertise (GFCE) Africa Cyber Experts Kick-Off Meeting held in March 2022 in Accra. It was part of efforts to improve bilateral relations with Ghana. In a release issued by the authority last Monday, it said “within the last five years, Ghana has taken progressive steps towards the development of cyber security in the country, and these include the ratification of international treaties like the Convention on Cybercrime also known as the Budapest Convention and the African Union Convention on Cyber Security and Personal Data Protection also known as the Malabo convention. Ghana has also ensured the
institutionalisation of cyber security to foster regional cooperation through the adoption of the ECOWAS Regional Cybersecurity Cybercrime Strategy and the Regional Critical Infrastructure (CII) Protection
86.69 per cent, a major progress from previous ratings in 2017 which was 32.6 per cent. “The ratings place Ghana 3rd on the African continent and 43rd globally; a development that has positioned Ghana as a leader in
Policy to strengthen Ghana’s international response in fighting cybercrime and to improve on cybersecurity.” It said recognising these and other initiatives, the International Telecommunication Union (ITU) in its 2020 Global Cybersecurity Index (GCI), rated Ghana’s Cybersecurity development at
cybersecurity on the continent and hence a model for other African countries to learn from,” the release added. The Ag. Director-General of the CSA, Dr Albert Antwi-Boasiako, who compared the visits to Ghana’s post-independence era, indicated that, Ghana’s modest but significant cybersecurity
development will be meaningless if other African countries do not develop along the same line. This is because nations are interconnected and cyber insecurity in one country could have a real impact on another country. The CSA, he said, is ready to collaborate and also to learn from other African countries to develop critical areas such as awareness creation, homegrown capacity building and the protection of critical information infrastructure. He said CSA’s mandate on international cooperation is provided under Section 83 of the Cybersecurity Act, 2020 (Act 1038), adding that cyber is a global commodity and thus cybercrime can only be combatted through effective international collaborations. Dr Antwi-Boasiako expressed his appreciation to the delegation for their visit and assured them of CSA’s commitment to collaborate and achieve a truly secured and resilient digital Africa.
Be guided by the truth and honesty GCB’s John Adamah urges the youth The Executive Head of Retail Banking of GCB Bank PLC, Mr. John Adamah, in an engagement with students of the University of Cape Coast, has highlighted some essential tenets that have had and continue to guide him along his splendid but challenging career. Mr Adamah, an alumnus of the University of Cape Coast, was the keynote speaker at the UCC edition of this year’s Success Africa Series held under the auspices of The LEC Group, a youth empowerment organization, that seeks to motivate and empower the next generation to be more equipped for life. Lessons learnt over the past two decades as an official of the GCB Bank were shared. Mr. Adamah, who has been speaking on the Success Africa platform since 2019 and was adjudged by listeners both as the most influential speaker and Success Africa Personality in the 2019 Edition, stated that throughout his career as an official of the GCB Bank, he has learnt the importance of loyalty
and the need to complement one another as team members. He also stressed that honesty and integrity should be paramount in one’s career path and advised the students not to undermine their superiors under any circumstance. He emphasized the need to uphold the truth and make it their guiding principle in all their endeavors wherever they find themselves. Mr. Adamah admonished the students not shy away from standing by the truth no matter the circumstance adding that “the truth does not only liberate and guides but also illuminates a dark path.” “Be determined, resilient and aim for excellence in whatever you set out to do and above all, acknowledge, seek and trust God to lead you onto pastures so rich and so sweet,” he advised. Mr. Richard Denakpor, the UCC Branch Manager in his presentation, educated students on the various E- Banking product
offerings of the Bank in addition to the conventional products available. The team seized the opportunity to onboard numerous students onto the GCB and G-Money account. Present at the event were Mr. Leslie Ampofo, Head of Private
Banking, Mr. Isaac Quartey- Cape Coast Main Branch Manager, Mr. Bossman Emmanuel Briandt of the Retail Banking Department and Mr. Nii Ayi Tagoe of the Corporate Affairs Department of GCB.
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FRIDAY, APRIL 29, 2022
Agribusiness, the way forward for Ghana’s economic development Ebenezer Acheampon, a former Head of Procurement at the Ministry of Food and Agriculture (MOFA) has said that Agribusiness is the way forward for the economic development of Ghana and has urged all farmers to take advantage of the emerging opportunities and go into crop farming. He said this during an Agribusiness Summit organized by the Men Ministry of the Church of Pentecost, Obuasi Area. The Church of Pentecost Men Ministry (PEMEM) in Obuasi Area under the chairmanship of Apostle Williams Boakye Agyarko held the summit on Saturday 23rd of April 2022 at the Bedieso Chapel Auditorium in Obuasi under the theme “Equipping Men with Opportunities and Skill Set to Possess the Nations”. Mr. Acheampong mentioned
that the fundamental elements and their percentages are key to one’s bid to be prosperous in business. He stated that for one to be prosperous, Knowledge and Wisdom takes ten percent (10%), Character takes forty percent (40%), and the Environment takes the remaining fifty percent (50%). He then advised the farmers to study their environment by way of needs before going into a particular crop farming, acquire knowledge before taking any adventure and to also possess the right character for it. After setting the context, the guest speaker also spoke about agribusiness value chain and the emerging opportunities in agriculture. He categorized the agribusiness value chain into four segments (1. Input Manufacturing and Production, 2. Input Sales and Supply, 3. Farming and Harvesting,
4. Processing, Packaging and Retailing). He went on to explain the business opportunities in all the segments and encouraged the participants to find a suitable segment for themselves. He again informed the farmers the six emerging Tree Crops such as Coconut Trees, Rubber Trees, Oil Palm Trees, Mango Trees, Cashew Trees and Shea Trees required for the socioeconomic development of Ghana and asked the farmers to pursue those tree crops, take advantage of government initiative and support for growing these Trees for their personal benefit and that of the nation. The summit saw One Thousand, Two Hundred and Sixty-Eight (1,268) members and Pastors from all the Twenty-Eight (28) Districts in the Area. Apostle William Boakye
Agyarko – The Area Head of the Church of Pentecost in Obuasi admonished all Christians to be diligent in their work for the blessings of God to be manifested in their lives. He advised the members not to be lazy but work hard in their chosen profession. He mentioned that contemporary Christians prefer to pray for the blessings of God without doing any work but said “our God blesses us through our hard work and diligence as stated in the bible”. The Area Men Ministry Leader – Pastor Benjamin Sarpong Mensah thanked the facilitators, the guest speaker and asked all the members to use the knowledge acquired for the betterment of their lives, the society and to possess the nations for Christ.
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StanChart announces changes to refocus and simplify its presence in Africa & Middle East region As set out during its full year 2021 results presentation, Standard Chartered PLC (“the Group”) is accelerating its strategy to deliver efficiencies, reduce complexity and drive scale. Today the Group announces a set of actions to redirect resources within its Africa and Middle East (“AME”) region to those areas where it can have the greatest scale and growth potential, in order to better support its clients. Subject to regulatory approval, the Group now intends to exit onshore operations in seven markets in AME and in a further two markets focus solely on its Corporate, Commercial and Institutional Banking (“CCIB”) business. The Group has invested heavily in recent years in the AME
region including fundamentally transforming its digital capabilities in its African markets. It has also been expanding its footprint to cover some of the largest and fastest growing economies, having recently opened its first branch in the Kingdom of Saudi Arabia and obtained preliminary approval for a banking license in the Arab Republic of Egypt. The seven markets where there will be a full exit of operations are Angola, Cameroon, Gambia, Jordan, Lebanon, Sierra Leone and Zimbabwe. In Tanzania and Cote d’Ivoire, the Consumer, Private and Business Banking businesses will be exited and the focus will turn solely to CCIB. The Group remains focused on serving its clients where it
can make the most impact. The Group will continue to serve corporate and institutional clients and facilitate cross-border capital flows and offshore business in all the above markets from its international network. The Group is currently present in 59 markets and serves clients in a further 83. The markets that will be exited generated around one per cent of total Group 2021 income and a similar proportion of profit before tax. Standard Chartered Group CEO, Bill Winters, said: “As we set out earlier in the year, we are sharpening our focus on the most significant opportunities for growth while also simplifying our business. We remain excited by a number of opportunities we see in the AME region, as illustrated
by our new markets, but remain disciplined in our assessment of where we can deliver significantly improved shareholder returns. Collectively, our actions will position the AME franchise for the next phase of growth after a very strong 2021 performance. We are grateful to our colleagues and partners in each of these impacted markets for their hard work and dedication and are committed to supporting them through this transition.” There will be no change to how the Group reports these businesses for the first quarter 2022 results. Changes to their presentation will be shown at the half year 2022 results.
Take advantage of the benefits of insurance -Imperial General Assurance Board Chairman The Board Chairman of Imperial General Assurance, Mr. Ivan Avereyireh, has urged the Muslim community and Ghanaians in general to take advantage of insurance policies to lessen their financial pressures during unforeseen circumstances. He underscored the importance of insurance in improving the wellbeing of individuals and families, particularly group or personal accident insurances which provide compensation to the insured in the event of injuries, disabilities or death. Mr. Avereyireh made the appeal when he led a delegation from Imperial General Assurance to pay a courtesy call on the Chief Imam, Sheikh Osman Nuhu Sharubutu. He used the opportunity to congratulate the Chief Imam on the occasion of his 103th birthday. He appealed to Muslim youth to be cautious in their celebration during Eid-ul-Fitr, the end of Ramadan, to avoid motorcycle accidents. The Managing Director of Imperial General Assurance, Mr. Robert Wugah, presented a cash donation, bags of rice, gallons of cooking oil and other food
items on behalf of the Board, Management and Staff of the company to the office of the Chief Imam. Mr. Wugah commended the Chief Imam for serving as a symbol of religious tolerance for the peace and unity of the country. For his part, Sheikh Sharubutu thanked Imperial General for its kind gesture and underscored the
importance of giving, particularly during Ramadan, to invoke the blessings of Allah. He called on Ghanaians to protect the peace of the country by living in peace and harmony with each other. Imperial General Assurance is a fully re-capitalized non-life company in line with the new minimum capital requirement by the National Insurance
Commission of Ghana. A wholly-owned Ghanaian insurance company, Imperial General Assurance is poised to handle all kinds of general insurance business with the attainment of the new minimum capital requirement by the Regulator.
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FRIDAY, APRIL 29, 2022
Emirates ramps up efforts to make travel easier ahead of Eid travel rush With the Eid travel rush just around the corner, the teams at Emirates are preparing to welcome more than 700,000 customers in Terminal 3 at DXB this holiday period. The busy travel period is expected to start on 29 April, with the highest volumes of travellers on the weekend before Eid, but travel is expected to remain high until 9 May and across the two weekends. The most popular destinations for UAE travellers getting away or visiting friends and family for Eid are London, Istanbul, Manila, Cairo, Paris, Casablanca, New York and Los Angeles. For travellers based in Ajman and the Northern Emirates, there’s been no better time to skip the DXB queues and take advantage of the airline’s Ajman check-in facility, now open round the clock. Customers can now check in up to 24 hours ahead of their flight, and up to 4 hours before departure. Emirates has also been working with the Ajman Transport Authority to expand the bus schedule to DXB, and now provides an enhanced check-in experience, complete with medical document checks, boarding passes and they can also fully check-in their baggage ahead of their convenient bus trip to DXB, bypassing the queues and breezing directly to the gate. For customers travelling through DXB, Emirates offers the following advice for stress-free travel: · Get there early! Customers are advised to get to the airport least three hours before their flight
departure to allow enough time for check-in, health document checks and immigration formalities. · If you choose to drive, please build in extra time to avoid traffic coming into Terminal 3. Alternatively, customers can take the Dubai Metro with direct links into Terminal 3. · Use the airline’s convenient 48 self-service bag drop machines,
32 of which include bag drop capability. Emirates’ customers can check in as early as 24 hours before their flight takes off, and passengers travelling to the US can check in 12 hours before departure. · Park it! Passengers can also use the car park check-in facility from 24 hours and up to six hours prior to departure. With zero parking charges, customers
who get dropped off at Terminal 3 Departures Car Park will have even easier and more convenient check-in options for a smoother airport journey. · Check-in comes to you; Emirates customers also now have the option to cut down their wait time with 25 mobile checkin ports roaming around the departures hall. Customers can get their boarding cards, weigh their bags, tag them, and have any of their questions answered by check-in staff. · Emirates’ biometric path in Terminal 3 offers a frictionless journey from specific check-in desks, Emirates dedicated lounges and boarding gates. Without any document checks or queuing, passengers can use the biometric path to swiftly complete all of their formalities. Customers who check in less than 60 minutes before departure will not be accepted for travel. Once checked in, passengers are advised to ensure they arrive to their boarding gate on time. Gates open 90 minutes before departure, boarding starts 45 minutes before the flight and gates close 20 minutes before departure. Emirates will not be able to accept passengers reporting late to the boarding gate for travel. Check-in and gate closure timings will be strictly followed to ensure flights depart on schedule and to avoid the impact on operations. Customers are also reminded to review the travel requirements to their booked destination by checking the latest updates on the Emirates Travel Hub.
Congo and Eni agree to increase gas production and supply In the presence of the Minister of Foreign Affairs of the Republic of Congo Jean-Claude Gakosso, of the Italian Minister of Foreign Affairs, Luigi di Maio, and of the Italian Minister for Ecological Transition, Roberto Cingolani, the Minister of Hydrocarbons of the Republic of Congo, Bruno Jean Richard Itoua, and the CEO of Eni, Claudio Descalzi, signed a letter of intent in Brazzaville today to increase gas production and export. Following the signature,
a meeting was held with the President of the Republic of Congo, Denis Sassou Nguesso. The agreement provides for the acceleration and increase of gas production in Congo, primarily through the development of a Liquefied Natural Gas (LNG) project with start-up expected in 2023 and a capacity of over 3 million tons / year (over 4.5 billion cubic meters / year) once fully operational. LNG exports will allow to valorize the production of
gas that exceeds Congo’s internal market needs. The Republic of Congo and Eni have also agreed to define initiatives to promote decarbonisation and sustainable energy transition in the country, in particular in the areas of renewable energy, the development of an agricultural supply chain to produce feedstock for biorefining without competing with the food chain, the conservation and sustainable
management of forests, the adoption of clean cooking systems, the capture, use and storage of CO2. Currently Eni is the only company committed to developing the huge gas resources of the Republic of Congo; it currently supplies gas to the Congo Power Plant (CEC), which guarantees 70% of the country’s electricity production. Eni has been present in Congo for over 50 years.
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FRIDAY, APRIL 29, 2022
Equatorial Guinea to prosecute owner of sunk oil tanker ‘fraudulently’ flying country flag Equatorial Guinea has said it will prosecute the owner of an oil tanker “fraudulently” flying the flag of the central African nation that ran aground on April 16 off Tunisia. Vice president Teodoro Nguema Obiang Mangue in a statement on Thursday said the country has also requested, “international collaboration to detect vessels illegally flying the Equatorial Guinea’s flag.
“From now on, all vessels that fraudulently fly our flag must be boarded,” said Rufino Ovono Ondo, Minister of Transport, on Thursday on TVGE, the state television. The vice-president also announced in a tweet that an Equatorial Guinean commission would be sent to Tunisia on Friday to “participate in the investigation”. The Xelo, which left the port of Damietta in Egypt and was,
heading for Malta, sank in Tunisian waters where it had taken refuge the day before due to bad weather conditions. The cause of the oil tanker’s sinking has not been determined. Tunisian navy forces evacuated the sevencrew members before the ship sank and the country’s judiciary has opened an investigation to determine the causes of this accident. It says it also wants
to determine the nature of the activity of the tanker and its journey in recent weeks. The crew - four Turks, a Georgian captain and two Azerbaijanis - were placed under arrest on April 22. Tunis then announced that the ship was empty, ruling out any risk of pollution, after having initially assured that it was carrying 750 tons of diesel.
Can GM crops jump-start Africa’s agriculture? Africa faces a race against time to increase food production. As climate change, population growth, and conflict constrain agricultural productivity, Genetically Modified (GM) crops as being touted as the solution to ensuring food security. Supporters of crop biotechnology argue that transgenic crops will aid farmers in reducing the burden of pests, drought and improve yields and quality with limited cost and effort. The number of countries planting biotech crops has grown from three in 2016 to over 10 in 2022, according to the International Service for the Acquisition of Agri-biotech
Applications (ISAAA). South Africa, Sudan, Egypt, and Burkina Faso lead in the commercialization of GM crops. Even more countries are trialing various strains of GM seeds. Countries are mostly planting staples such as maize, sorghum, and cowpea, but also cash crops such as cotton and soybean. But concerns about trade and safety stand in the way. Skeptics have voiced concerns for the environment and human safety. Countries also worry that GM crops will hurt trade with the EU, Africa’s largest export market. Even then, many African countries have included the
adoption of biotech crops in their national development blueprints and their agriculture and industrialization roadmaps. The global value of the biotech crops market is projected to reach $30.24 billion by 2026, according to Fortune Business Insights. Doris Wangari, a plant biotechnologist joins the show with insights on how GMOs can be beneficial for African Agriculture and food systems. Ghanaian vegetables find market in EU In Ghana’s Volta region, a former banker has established a farming enterprise that’s exporting vegetables and fruits
to Europe. Felix Kamassah quit his banking job nearly ten years ago. Today, he grows 47 different crops on over 700 acres of land. South Sudan crude production As Europe shops for new energy suppliers, African oil producers are scrambling to increase production. South Sudan, whose output fell in 2021, is one of them. Production fell to 156,000 barrels per day last year from 170,000. The country’s finance ministry cited Covid-19 and heavy flooding in the oilproducing regions for the slump in output.
FRIDAY, APRIL 29, 2022
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FRIDAY, APRIL 29, 2022
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NEWS
FRIDAY, APRIL 29, 2022
University of Ghana signs USD 9 million ICT centre with KOICA Korea International Cooperation Agency (KOICA) Ghana has signed a Record of Discussion (RoD) with the University of Ghana to build a Centre of Excellence for ICT- based Start-up and Asian Research Centre. The $9-million Ghana-Korea Centre of Excellence which is to be known as GK-IMPACT will be
built at the University of Ghana (UG), Legon. Construction of the Centre will commence this year, (2022) and is expected to be completed in 2025. The Centre is aimed at building an advanced innovation centre that can share Korea’s advanced ICT and development experiences while enhancing Ghana’s research and ICT capabilities to increase
ties between Ghana and Korea. The facility, a hub for establishing startup incubation programmes, would also host Ghana-Korea business conferences Coordinated by UNICEF through MEST Africa, creating jobs and entrepreneurial opportunities for youth aftereffects of COVID-19. Mr Jung-Taek Lim, Korea Ambassador to Ghana signed on behalf of his country said the project was based on a request by the UG to the Embassy. He commended Ghana for taking steps in building a robust infrastructure to facilitate the operations of startups, drive entrepreneurship and promote research, adding that it would be enhanced by Korea which had an advantage in Information Communication and Technology (ICT). The Ambassador said GKIMPACT resonates with the Vicechancellor’s vision of enhancing
the experiences of students, among other stakeholders through digitalisation. Professor Nana Aba Amfo, the Vice-chancellor of the university who signed for Ghana said the institution cannot train students without providing them with ICT training, adding that the offer was timely. Help the University synchronise two areas of interest digitalisation and Asian studies. She said her vision is to promote a culture of research teaching and learning, administrative processes, and extension services driven by technology. The Vice-chancellor said in recognition of global trends in ICT and the area of technology, the University was training students who are critical thinkers, culturally sensitive, technologically alert and would be ready to provide leadership both locally and internationally.
Ghana Comes Second In the 2021-2022 Huawei ICT Competition Regional Finals At the just ended Huawei ICT Competition regional finals held in South Africa, the all-girls team from Ghana placed 2nd amongst the 6 teams that contested for the competition under the Innovation track. The girls, Esther Aboagyewaa Abankwa, Martha Esinam Kekele Demanya and Gladys Obuobi who are final year students of the Kwame Nkrumah University of Science and Technology came second with their AI project topic, “WaterBits” – An Artificial Intelligence-Based Water Quality Predictor, which automatically classifies the quality of water and determines its safety for drinking. Speaking on their project, “WaterBits”, the team lead, Gladys Obuobi mentioned that, statistics from the United Nations (UN) report indicate that about 1.5 million people living at rural communities die each year from contaminated water-driven diseases hence their Artificial Intelligence solution, designed to help address the issue. The Dean for Quality Assurance and Planning Unit at KNUST, Professor Jerry John Kponyo, praised the girls for making it to the global finals and making their institution proud. He assured them of KNUSTs unflinching support in the quest to ensure that the team
make Ghana proud at the Global finals. He further encouraged the team to believe in themselves and work harder towards the winning of the ultimate prize. “Your innovation has the potential to impact a lot of lives in the rural communities and that should be your motivation,” he
said. He commended Huawei for giving the ladies the opportunity to explore their potentials and prove themselves through the Huawei Seeds for the Future Women in Tech Initiative. Mrs. Jenny Zhou, Director for Public and Government Affairs at Huawei Ghana also commended the ladies for being the only girls’ team to make it to the global finals. She encouraged them to put in more effort to make Ghana proud at the global finals. “Coming this far means you
are very capable and can do better if more effort is put into it. Personally, I am glad you are projecting Ghana as the only team with ladies competing at the global finals. I believe you have been well connected through this program and this will go a long way to shape your career path.” She said. Prof. Lidia Arthur Brito, the UNESCO R e g i o n a l Director for S ou t h e r n A f r i c a , commended Huawei for building the capacity and skills of young talents in the Sub region, by giving them the opportunity to be a part of the digital world. “Technologies can indeed empower people, commodities, countries and continents but technologies can also discriminate and leave people out of this development. By raising the capacity and skills of young talents in different sphere, I say this is immensely appreciated.” According to her, participation of women in ICT is very low, however, she is glad more
women are being trained by Huawei in various technologies like AI. She congratulated the various academic institutions for supporting Huawei to make the ICT Competition inclusive to all. This year, 15 000 students from over 200 universities and colleges from Sub-Saharan Africa participated in the 2021-2022 Huawei ICT Competition. From the 48 competing teams, Nigerian and Kenyan teams won first prize in the regional final. Teams from Uganda, Ghana, Nigeria, and Tanzania claimed second prize. The South African team which reached the top ten of the 2021 Huawei Global Tech4Good Competition for designing an intrusion detection system that uses wireless and cloud technologies to curb rhino poaching was honored with a Top Performance Prize. Over the past 5 years, 80 000 university students from Africa registered for the competition, and more than 20 teams entered the global finals. The Huawei ICT competition has grown into the biggest competition of its kind in Africa and across the globe. It offers a global stage for students to showcase and practice their ICT knowledge and skills.
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| MARKET REVIEW
FRIDAY, APRIL 29, 2022
WEEKLY MARKET REVIEW FOR WEEK ENDING - APRIL 22, 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.
FRIDAY, APRIL 29, 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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| MARKET REVIEW
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
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NO. B24/317 | NEWS FOR BUSINESS LEADERS
FRIDAY, APRIL 29, 2022
AGRA in Ghana: a successful 16-year partnership With the right reform in our agricultural sector, we can grow the economy, create more jobs and attain food security. And while the government has and continues to achieve significant gains towards this vision, we can’t do it alone, but we need to ensure these partnerships are fit for purpose and make sense for the country.
An example of this is our partnership with AGRA, who has supported us to improve the enabling environment for smallholder farmers while delivering the technical, structural and reforms needed to help grow agricultural sector. AGRA arrived in Ghana in 2006, and during its first decade it invested $12.8 million in our national agricultural sector. That this has borne fruit can be established by looking at some of the results of this investment. The establishment of 11 seed companies has been supported, as was the development and release of 45 seed varieties of which 36 went on to be commercially developed. AGRA helped 20
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people achieve PHDs and 27 to be awarded MSCs. It trained 4,132 agricultural dealers, which meant the distances farmers had to travel to get access to inputs such as seeds and fertiliser were reduced. It educated 702,000 farmers on the techniques of Integrated Soil Fertility Management (ISFM), a process that mixes mineral and organic fertilisers and aims to maximise the utility of scarce nutrient resources. As a result, 212,000 hectares have been cropped using ISFM technologies. AGRA’s intervention has resulted in 122,000 metric tonnes of harvests commercially gathered in, valued at US$23 million. AGRA contributed to the development and passage through the political process of regulations connected with the Plants and Fertiliser Act, a measure to ensure the efficient conduct of plant protection, to prevent the introduction and spread of plant pests and to regulate the import and facilitate the export of plants and plant materials. It contributed also to Ghana’s National Fertiliser Policy and
promoted the Seed (Certification and Standard) Regulation, which has been passed by Ghana’s Parliament. All of this is of critical importance in a country where half the people reading this article work in agriculture. We cannot underestimate the challenge of enhancing a sector that accounts for more than half our gross domestic product. AGRA’s initiatives are in no sense in competition with official Government policy. On the contrary, its work has been fully in line with the State’s two main programmes in this sector, the Food and Agriculture Sector Development Policy (FASDEP II) and the second phase of the Medium Term Agriculture Sector Investment Plan (METASIP II). Like the Government, AGRA is committed to increasing incentives for private-sector investment in and participation in agriculture, while improving access for Ghanaian farmers to both finance and markets. We are both committed to encouraging the adoption of climate-smart technologies and the use of climate-adapted seeds and
EDITOR: BENSON AFFUL editor@business24.com.gh | +233 545 516 133.
fertilisers. AGRA has improved the incomes and the food security of at least 1.2 million smallholder households, and has facilitated the development of a “smart subsidy” model to encourage the adoption of yield-enhancing technologies. On the ground, 1,880 villagebased advisers have been recruited and trained, and a partnership established to implement the National Rice Development Strategy, which aimed to increase the capacity of more than 128,000 farmers. AGRA’s work takes it into many and complex areas, but its rationale is quite simple. It is to transform the working lives of primarily smallholder farmers, men and women typically cultivating staple crops on land measuring two hectares or less, by turning what had been a daily struggle to survive into a thriving small business. In this fine and praiseworthy endeavour, AGRA has been a true friend to Ghana. Dr Owusu Afriyie Akoto is Minister of Food and Agriculture in the Republic of Ghana.