Business24 Newspaper 1 April 2022

Tourism Min. calls for joint business corporation between Ghana and Irans

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Absa Bank records strong 2021 performance…revenue up 17%

03 NEWS FOR BUSINESS LEADERS

BUSINESS24.COM.GH | FRIDAY, APRIL 1, 2022

Experts worry over low investments in gas sector

BY EUGENE DAVIS

Ghanaians switch to Vodafone following e-levy approval A growing number of Ghanaians have started switching from their current networks to Vodafone Ghana following the E-levy approval announcement. The mobile money users who expressed this on social media, especially on Twitter, praised Vodafone for the waived telco charges on transfers to any other network.

The introduction of the E-levy means that Vodafone Cash customers will be charged only a 1.5% rate for any amount that exceeds GHC 100 instead of the expected 2.5 % by other networks. This means that Vodafone customers will still enjoy the lowest mobile money transfer charges in Ghana when E-levy is implemented.

Last year, Vodafone Ghana made the unusual decision to waive all charges on any amount of money transferred from Vodafone Cash to all other networks in order to reduce the financial burden on customers. Aside from drastically reducing the financial burden on consumers, the free mobile money transactions by Vodafone has made the service more appealing to ordinary Ghanaians and caused a rise in patronage.

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| EDITORIAL/NEWS

WEDNESDAY, MARCH 30, 2022

Govt's plausible steps to tame austerity 1

Wash your hands 2

Cover your cough 3

G

overnment has outlined a numbers of interventions from the government to tame the austerities of the economy and to offer some respite to Ghanaians.

On the fiscal side, the minister announced a two-fold approach: to control expenditure and to raise more revenue domestically. This is to be achieved through the implementation and collection of the revised property rate by end of April 2022, the roll out simplified tax filing mobile application for all eligible taxpayers

by July 2022.

Government says it will also impress upon Parliament to fast track the passage of the controversial E-Levy Bill as well as the tax exemptions bill, and the fees and charges bill.

The Finance Ministry says it will work with the central bank to review the foreign exchange retention policy to ensure multinational companies in the extractive sectors retain foreign exchange earnings, from the sale of our resources, in the country.

Other measures to be implemented within the medium-term will be to wean-off public tertiary institutions from government payroll and provide them with a fixed amount “block grant” instead.

Government will also aggressively pursue reforms to address structural challenges in public financial management including procurement and commitment control, payroll management and

human resource management.

For the port side, the plan will be to prioritise the proposed Revenue Assurance, Compliance, and Enforcement (RACE) Programme to plug revenue leakages especially at the ports and the infamous fuel bunkering and small scale mining exporters cabal.

Government will also partner the private sector to introduce digital systems to monitor quarrying, sand winning and salt winning to get more revenues from our natural resources; and immediately enforce the “No Duty – No Exit” policy at the MPS Terminal at the Tema Port to improve revenue collection.

Ghanaians switch to Vodafone following e-levy approval Continued from page 1 Vodafone Cash has earned a name for itself in product innovation.

Its free transfer service has won a number of awards including Product of the Year at the 2021 CIMG Excellence Awards. Vodafone Cash has over the years proven that its mobile money platform is robust and not susceptible to fraud.

Customers who have not

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subscribed to the service yet can simply dial *558# to register. NonVodafone customers can port their existing number or purchase a SIM card from any Vodafone Agent or Retail Shop, and register with a valid Ghana Card.

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Hollard CEO named woman of the decade The Group Chief Executive Officer (CEO) of Hollard Ghana, Patience Akyianu, has been named the Outstanding Woman CEO of the Decade at the just ended 12th Ghana Entrepreneur and Corporate Executive Awards 2022 held in Accra.

The annual awards ceremony held under the theme: “Entrepreneurship in the Digital Era,” sought to honour corporate and business people for their significant and positive impact on society.

Patience is an award-winning Chief Executive, currently the Group Chief Executive Officer of Hollard Ghana Holdings, a subsidiary of Hollard International - South Africa, and a director on both boards of the subsidiaries, Hollard Insurance Ghana, and Hollard Life Assurance Ghana.

Before this, she was the first Ghanaian woman to be the Managing Director of Barclays in Ghana, now Absa Bank Ghana. Patience is also a solid finance professional and banker with over 26 years of experience in finance, banking, and insurance.

Gratitude Ms Akyianu, in an interview after the award, expressed her gratitude to God and the jury of the awards board for the honour done to her.

She said: “I am excited to be acknowledged at this prestigious awards ceremony.

“It has been a remarkable journey for me. Thank you to the Almighty God for the opportunity to serve great companies. I owe who I am, to God, my family, especially my husband, Lawyer Kwame Akyianu, for his immense support of my career growth. I do not take your support for granted”.

“To thrive as a successful female leader, you need to have a team that forges on with a binding purpose. To my able management and staff of Hollard Ghana, I say thank you. It is because of you that Hollard Ghana is an award-winning and vibrant insurance company. Your resilience is so infectious, and it's that spark that sets us apart as the country’s favourite insurer".

“Insurance is a social enabler, and as a leader in this industry, we pledge

to continue to lead the good fight by propagating insurance awareness in the country. “This, we believe, will help increase insurance penetration in the country. I dedicate this win to my family and the entire staff of Hollard Ghana, affectionately called Hollardites,” she added.

About the CEO The CEO is known for her tremendous leadership skills and execution capabilities.

She has been recognised with prestigious awards like African Female Business Leader of the Year-2021, Marketing Woman of the Year -2019, Outstanding Group CEO of the Year2019. She is a certified professional accountant and a member of the Institute of Chartered Accountants, Ghana.

She is also on the board of Ecobank Ghana Limited and Hubtel Ghana and a founding member of both the Executive Women Network and the International Women’s Forum, Ghana.

| NEWS

FRIDAY, APRIL 1, 2022

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Experts worry over low investments in gas sector

BY EUGENE DAVIS

E

nergy experts say the country’s inconsistent national gas strategy as well as inadequate investments and infrastructure is hampering the growth of the gas sector.

Available statistics show that beyond 2030, the country will not be deriving much from the Jubilee Fields and it is time more explorations are carried out in order to make more discoveries in a bid to ensure gas security and leverage the current energy transition momentum, the experts added.

Speaking at a dialogue on the future of Ghana’s gas sector under the auspices of Natural Resource Governance Institute (NRGI) and Africa Centre for Energy Policy (ACEP), one of the panelists, Ben Boakye, said it is critical for government to have a long-term perspective on gas in order to ensure sustainability and tackle current challenges.

“If we are not able to align our thinking and planning, we will always be doing these ploughing presentations and getting people with some aspirations… (there is something wrong with our planning because the one planning our industrial sector does not even interface with those in the supply and demand value chain in the energy sector). So, we assume that industries will switch because demand is available but we are

not worried about the perception of the investor on price and even other options available.”

Government has a gas master plan which outlines gas utilisation priorities that encompass power generation, cement production, industrial cogeneration, transportation and petrochemical synthesis but according to the panelists the plan needs a revision and consistency, as well as requiring an expanded scope to include operational optimization.

A Policy Lead, Petroleum and Conventional Energy at ACEP, Kodzo Yaotse, says there is no link between oil production and investment in energy transition.

He also noted that gas market challenges have caused debts to the value chain, all these is constraining the gas sector and making it unattractive.

A comprehensive national strategy needed for the transition that resolves the challenges of the gas sector.

He, however, sounded optimistic about the prospect of the country’s oil and gas.

“The three producing fields [Jubilee, TEN, Sankofa] show there is oil here, so we need more companies especially the ones holding unto the blocks [15 others] to be engaged in exploration. Our basin holds huge potential for more oil and gas.”

Victor Kofi Sunu Attah, General Manager, Engineering at GNPC, says his

outfit pushes for market development and collaborates with other stakeholders so that any gas found offshore is developed.

“We have the necessary resource and the balance sheet to underwrite those agreements and provide the necessary securities and guarantees.”

He also proposed that the country should find innovative ways of pricing its gas, in order to develop fertilizer to give to its farmers instead of importing them and subsidizing it.

Dr. Riverson Oppong, Manager, Commercial Operations at Ghana Gas, stated that gas remains an important

commodity and that the country “is not doing bad in terms of combining hydro and gas” and added that the country has a substantial quantum of gas that it can fall on from the Tano Fields.

The CEO of the Ghana Upstream Oil and Gas chamber, David Ampofo, also indicated that the country has to discover and explore more before “we can talk about local content”.

According to him an attractive business and regulatory environment is what will spur growth, noting that an up-to-date gas master plan remains key.

Absa Bank records strong 2021 performance…revenue up 17%, impairments down by 35%

Absa Bank Ghana has announced an impressive 2021 financial performance, recording an increase in revenues by 17% and a reduction in impairments by 35%. This comes on the back of a return to normal activity by the Ghanaian economy after a challenging 2020 due to the COVID-19

pandemic.

Profit before tax and return on equity grew by 55% and 6.6% respectively year on year, reflecting prudent cost and capital management.

The results, announced this week, demonstrate a concerted effort by Absa Bank to grow and maintain an

efficient and resilient organisation, support its customers and clients while investing in relevant parts of the business to ensure sustainable growth.

Key highlights: • Revenue grew by 17% to GHS1.6 billion • Profit before tax (PBT) increased by 55% to GHS 1.1 billion • Customer Assets was up 7% to GHS4.8 billion • Customer Deposits were up by 22% to GHS 7.9 billion • Return on Equity improved by 6.6% to 32.6%, • Impairments fell by 35%, • Profits before tax (PBT) increased by 55% Year-on-Year to GHS1.1 billion with revenues jumping by 17% to GHS1.6 billion, driven by capital retention, strong liability growth and good growth in Loans & Advances.

This was further supported by an active adoption of digital channels by the bank’s dynamic base of clients and customers.

The emerging recovery of the Ghanaian economy in 2021, from a difficult position the previous year, was also a key factor in the improvement in revenues.

The difficulties created by the COVID-19 pandemic abated in

2021 following improved levels of economic activity across key sectors.

Absa Bank’s active participation in the improvement of the Ghanaian economy through its transactional banking segments supported this performance.

Abena Osei-Poku, Managing Director of Absa Bank Ghana, said: “The results reflect a return to medium term growth driven by the recovery of the Ghanaian economy in 2021 from a challenging position in 2020 due to the COVID-19 pandemic.

I am excited by what we have achieved as a business in supporting the key growth sectors of the Ghanaian economy, empowering individuals, and businesses to bring their possibilities to life. I am grateful to the Board, Management team and colleagues, who are always willing to go above and beyond to ensure success for this business. We remain focused on adopting dynamic and modern digital and data-driven solutions to make the lives of our customers and clients easy and convenient. We shall also continue investing in our communities and promoting the sustainability of the environment in which we operate.”

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| NEWS

FRIDAY, APRIL 1, 2022

Tourism Min. calls for joint business corporation between Ghana and Iran The Minister for Tourism, Arts and Culture Dr Ibrahim Mohammed Awal says there is a need to have a permanent joint business corporation between Ghana and Iran to widen and strengthen the relationship between the two countries.

He mentioned that Ghana is a very stable and peaceful country in the West African sub-region with the African Continental Free Trade Area (ACFTA) headquarters being stationed also here. Iran can therefore use this platform to promote trade among the 1.2 billion people in Africa and a combined Gross Domestic Product (GDP) of 3 trillion dollars.

The Minister made this statement when he met a delegation from the Islamic Republic of Iran led by H.E Dr Saeed Khatibzadeh, spokesperson and Deputy Foreign Minister in his office on Wednesday 30th March 2022.

Dr Awal proposed the establishment of the Iran-Ghana Business Council to promote agro-businesses, aviation, tourism and trade which can result in 350 million dollars in investment every year.

He indicated that the Council should be situated in Ghana as a centre of trade between Iran and other African countries.

Dr Saeed Khatibzadeh, the Deputy Foreign Minister of the Islamic Republic of Iran, stated that they are not just looking into trade, but to seek friendship, build economic and cultural partnerships which will help promote a mutual understanding between the two countries.

According to him, there can be collaboration in other fields aside from trade between the two countries and suggested two projects on artistic and cultural relations, to begin with, and which can be used to expand the corporation between Ghana and Iran.

Dr Khatibzadeh extended an invitation to the Hon. Minister to lead a delegation from the tourism sector to attend the inauguration of the Joint Economic Commission on 27th May 2022 in Iran. He indicated that the forum would be used to sign a Memorandum of Understanding between his outfit and the ministry.

He recommended an exchange programme dubbed Cultural Week

Celebration where various artists from Ghana can perform at a musical concert and an exhibition of food, handicrafts and other cultural artefacts would be organized.

The two Ministers discussed the need to have a friendly match between the two countries ahead of the FIFA World Cup tournament to be hosted by Qatar in November.

Ghanaian sugarloaf pineapple to feature at Fruitlogistica 2022 The Ghana Export Promotion Authority (GEPA) in collaboration with the West Africa Competitiveness Programme (WACOMP) are supporting the promotion of Ghanaian exotic fruits under the theme “Discover the superior taste of Ghana’s green gold”.

The WACOMP is funded by the European Union (EU) and aims to strengthen the competitiveness of the West Africa region and enhance the integration of ECOWAS member states and Mauritania into the regional and international trading system.

A media release issued in Accra on March 30, 2022, said that as part of the programme, seven GlobalG.A.P. (a farm assurance program) certified members of the Sea-freight Pineapple Exporters of Ghana (SPEG) are being supported to participate in the Fruit Logistica 2022 from April 5 to April 7 in Berlin, Germany.

The Ghanaian sugarloaf, a sweeter pineapple variety is the focus product at the fair.

“Ghanaian producers already export sugarloaf pineapples to France and in the next few years, this variety will also be introduced to other European markets. The Fruit Logistica trade fair is the place to be to get acquainted with sugarloaf from Ghana,” it said.

Europe is the main destination of 90 per cent of Ghanaian pineapples and among the top five European markets are Belgium, France, the UK, Switzerland, and Germany.

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| BANKING &FINANCE

FRIDAY, APRIL 1, 2022

GCB Bank Congratulates Ghana Black Stars GCB Bank PLC, Your Bank for Life, Ghana’s first and largest indigenous bank congratulates the Management Team, Technical and Playing Body of the Black Stars for qualifying for the FIFA World Cup Qatar 2022.

The Bank is delighted to be part of the institutions that contributed resources towards the team’s preparations and joins the people of Ghana in sharing the joy and happiness the qualification has brought.

GCB also commends the Government, state, and private sector institutions, as well as all individuals who played various roles in securing another qualification for the Black Stars and

Ghana.

This is the fourth time Ghana has qualified for the World Cup, which is one of the most dominant and competitive sporting categories globally after successful entries in 2006, 2010, and 2014. Ayekoo, Black Stars!

The Management of the Bank also congratulates the Under-20 Women’s Soccer Team for qualifying for the Women’s World Cup last Sunday.

The Managing Director of the Bank, Mr. Kofi Adomakoh, an avid sports enthusiast, in a message, urged Ghanaians to continue to channel their energy and goodwill

into supporting local and indigenous institutions as well as brands.

“This is a win for Ghana, a win for us all, and can go a long way to boost morale and deepen the commitment we all have to advance the development of Mother Ghana.”

“GCB Bank, Ghana’s foremost indigenous bank will continue to play a key role in supporting institutions and brands that carry our flag, tell our story, and thus contribute to reshaping the Ghanaian narrative not only at home but the world over,” he said.

Government outlines measures to ease economic challenges Minister for Finance, Ken Ofori-Atta, has given details of Government plans to address the economic difficulties due to recent global and domestic events and assured that government will not roll back on its major policy interventions such as the free SHS. “Let me say this, President Nana Addo Dankwa Akufo-Addo has absolutely no intention to roll back on a major policy like Free SHS. We see education as the best enabler for sustainable economic growth and transformation and will do more to improve on it for it to serve more and better our children” he assured.

He made these known when he addressed the media to throw more light on government interventions to address the economic difficulties which were manifested in rising fuel prices, rising inflation and cost of living, exchange rate depreciation, rising interest rates and revenue mobilization challenges.

Mr. Ofori-Atta revealed that, Cabinet deliberated extensively on a number of issues and approved measures to support current efforts to address the challenges Ghanaians were facing at its first regular quarterly retreat for 2022.

“Ladies and Gentlemen, it is important to stress, right from the onset, that the difficulties we are facing in Ghana are not peculiar to Ghana. It should also be stressed that several governments in both developed and developing countries are busily coming out with various prescriptions to bring their economies back on track, after the devastating impact of COVID-19 which distorted global supply chains, and the ongoing Russia-Ukraine war” he added.

According to Minister, two forces shaping global events were novel coronavirus pandemic and the crisis in Ukraine and Ghana’s decision to focus first on protecting lives and then livelihoods paid off.

Mr. Ofori-Atta disclosed that, Ghana like most countries in the world, had a tall list of coronavirus-induced bills to pay from 2020 and 2021 and came out with plans and policies to boost investor confidence and job prospects for 2022 and beyond.

“As you recall, we lost Ghs13.1 billion of revenue and had to increase our expenditure by GHS14.2 billion with combined fiscal impact of GHS26 billion (6.8% of GDP)”, he noted.

On some of the challenges facing the Government, he cited the unyielding

stance of the Minority in Parliament against the E-levy that could gravely affect investor confidence in Ghana’s capacity to implement its programmes and settle debts, triggering a downgrading by credit rating agencies, and leaving the cedi vulnerable as Ghana could not access the International Capital Market.

Again, on the international front, the launch of the attack on Ukraine by Russia after the devastation wreaked by the Coronavirus pandemic had disturbed supply chain, surged inflation, and created uncertainties in the financial markets.

To address the adverse impact of the domestic and international challenges the country was facing, the Minister enumerated measures to address the challenges which included some spending cuts.

Government, he disclosed had announced and, immediately, began implementing a 20% expenditure cut as part of fiscal stabilisation and debt sustainability measures after Parliament failed to approve key revenue streams at the appropriate time.

This, he added had been done through the quarterly expenditure ceiling allotments to MDAs. Quarter 1 allotment was currently under 11 implementation whiles Q2 allotments would be issued

shortly.

Other measures to ensure the achievement of the fiscal deficit of 7.4% of GDP for 2022 included 50% cut in fuel coupon allocations for all political appointees and Heads of Government institutions, including SOEs, effective 1st April 2022 and imposition of a complete moratorium on the purchase of imported vehicles for the rest of the year. This will affect all new orders, especially 4-wheel drives.

Again, Government has imposed a moratorium on all foreign travels, except pre-approved critical/statutory travels, government will conclude ongoing measures to eliminate “ghost” workers from the Government payroll by end of December, 2022 and conclude the renegotiations of the Energy Sector IPPs capacity charges by end of Q32022 to further reduce excess capacity payments by 20% to generate a total savings of GHS1.5 billion.

The Minister further disclosed the imposition of moratorium on establishment of new public sector institutions by end of April, 2022, prioritization of ongoing public projects over new projects which would enhance efficient use of public funds over the period by finishing ongoing or stalled but approved projects, reduction

of expenditure on all meetings and conferences by 50% effective immediately and approval by Cabinet for Ministers and Heads of State Owned Enterprises (SOEs) to contribute 30 percent of their salaries from April to December 2022 to the Consolidated Fund.

Mr. Ofori-Atta stated that Government would pursue a comprehensive reprofiling strategies to reduce the interest expense burden on the fiscal and liaise with Organized Labour and Employers Association to implement with immediate effect, the measures captured in the Kwahu Declaration of the 2022 National Labour Conference.

On the current fuel challenges, he revealed that, unlike other countries where the hike in crude oil prices and exchange rate volatility were leading to shortages in supply of petroleum products, government was implementing measures to guarantee constant supply of petroleum products.

To mitigate the impact of the rising price of petroleum products at the pumps for the next three months, the Minister disclosed that government has decided to reduce margins in the petroleum price build-up by a total of 15 pesewas per litre with effect from 1st April.

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FRIDAY, APRIL 1, 2022

| NEWS

FRIDAY, APRIL 1, 2022

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MTN Ghana inducted into AHRIA Hall of Fame, wins 7 awards MTN Ghana has been inducted into the African Human Resources Innovation Awards (AHRIA) Hall of Fame at a ceremony held over the weekend in Accra.

In addition, MTN won six other prestigious awards, the highest of awards received by any nominee at the event.

The awards MTN received were: • HR Hall of Fame - MTN • Best Organization in Employee Benefits • Most Innovative Work from Home Plan Policy • Employer Brand of the Year • HR Team of the Year (Gold) • Employer of the Year • Africa Top 50 HR Leader – Amma Benneh-Amponsah The Chief Human Resources Officer at MTN Ghana, Amma BennehAmponsah was named among the Africa Top 50 HR Leaders. This is the third time Amma has been recognized for her exceptional contribution to people/human capital strategies in Africa.

Speaking at the Awards, Amma Benneh-Amponsah, expressed gratitude to the organizers and

dedicated the awards to MTN Employees.

She said, “As an organization, MTN enables an environment that allows Employees to thrive in positivity and live inspired.”

The Chief Executive Officer of MTN Ghana Mr. Selorm Adadevoh congratulated Amma and the HR team for the excellent work done over the years, especially during COVID to ensure Employees are well informed, safe and energized to work anywhere and anytime which is the new normal.

He also commended the human resource practices and interventions put in place to ensure productivity and innovation that continues to impact our valued customers and stakeholders.

The Africa Human Resources Innovation Awards formerly called Ghana Human Resources Innovation Awards is an annual celebration of leading Human Resource Practitioners and organizations with Top-notch HR models who have made sterling contributions to the corporate sector over the years. MTN has won over 20 awards since the inception of the Africa Human Resources Innovation Awards in 2018.

Stanbic records strong financial results with profits of GHc405m in 2021

Stanbic Bank Ghana continues to show resilience in business growth and profit even under strenuous business environment as the bank recorded a profit-after-tax of GHS405 million last year, which is a 26% improvement in the bank’s profits compared to the same period in 2020.

This was revealed in the bank’s 2021 annual financial results published on Tuesday March 29, 2022.

According to the report, the impressive performance was achieved notwithstanding the stressed business climate in the country in the year

under review. “Our good run of strong financial results continued in 2021, with our profit-after-tax for the year improving by 26% to GHS405m as compared to the same period in 2020. The bank’s cost-to-income ratio improved dramatically from 53% to 48% over the same period.

Underpinning the bank’s performance are our strong asset quality, diverse revenue sources, and controlled credit losses and operating costs. These results were achieved despite a stressed business climate, and a high effective tax rate of 38%,”

the report said.

Chief Executive of Stanbic Bank Ghana, Kwamina Asomaning, said the strong performance last year is a good launchpad to be more innovative in producing consistently positive customer experiences for our clients. He said “Our customers and our franchise have demonstrated a resilience, not just to weather the storm but also, to be intentional about adapting to challenging circumstances.

The path ahead is one where we, as a bank, commit to partnering with

stakeholders in innovative ways which enable their aspirations to be met.

Our own success is wholly contingent upon how well we do this. We will continuously measure our success against it, while staying true to our culture of doing the right business, the right way.”

Kwamina Asomaning further shared his ambition for the future of the bank drawing on the bank’s ability to adapt to changes and to innovate. According to the Chief Executive, “My ambition is for Stanbic Bank to be a leader in innovation. In today’s economic and fiscal environment, it is only through leading in innovation that we will be nimble enough to face opportunities when they arise, and prepared enough to mitigate challenges as they occur.

Being a leader in innovation will mean we can apply our creative talents to improve customer solutions, enhance business processes and develop our technologies.”

“Doing so will enable us to generate recurring and sustainable value for all our stakeholders. Achieving this goal is fundamentally impossible without deep cross-functional collaboration, and a culture which promotes agility, continuous improvement, and excellence. Therefore, we will focus our efforts and our resources on precisely these things. In 2022, we will ramp up our innovation investments and intensify our digital transformation activities such that we convert our long-held ambitions into tangible outcomes,” he added.

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| NEWS

FRIDAY, APRIL 1, 2022

Chamber of Mines to help SMEs boost supplies to mining sector

The Ghana Chamber of Mines has launched the Supply Chain Financing Programme to help provide funds for small businesses seeking to enter into the mining sector.

The programme, which provides an integrated platform for banks, mining companies and SMEs, is aimed at improving local content in the mining sector.

The move is to help build the capacity of local companies to actively engage in the extractive sector.

The Chief Executive Officer of the Ghana Chamber of Mines, Dr Sulemanu Koney, at the launch said research conducted by the chamber showed that access to finance was a huge challenge for local suppliers in the mining sector.

Following engagement with relevant stakeholders, Dr Koney said the Ghana Association of Bankers was asked to help provide funding for local suppliers at a favourable interest rate.

“Mining is a catalyst for development.

However, you can’t just sit down and fold your arms and say mining is a catalyst for development. We are not a finance house but we help by bringing the companies and the banks together to understand the supply chain,” he stressed.

He said also the chamber engaged the Association of Ghana Industries to help create a conducive environment that will encourage banks to lend to small businesses in the mining sector supply chain.

Mr Koney announced that out of 23 banks engaged in the country a shortlist of three was made— comprising CAL Bank, Republic Bank and Absa bank.

He stated that the banks were all allowed to present workable financial plans to the chamber in collaboration with companies in the supply chain.

“A committee was set up to engage banks in the country to ascertain which financial institutions have financial products that fit the whole idea. After further engagements we settled on these three banks to present their products to the stakeholders,” he said.

The Chief Executive of the Ghana Association of Bankers, John Awuah, in his remarks at the launch reiterated that banks are now well capitalised to venture into investment in the mining sector.

According to him, the financial sector clean-up exercise undertaken by the Bank of Ghana has equipped many Ghanaian owned banks to lend funds to areas that will help develop the infrastructural needs of the country.

“Now we have Ghanaian banks investing in the construction and expansion works at the Takoradi Drydock. That’s not all, a lot more Ghanaian banks are going into lending for infrastructural development. That is the only way we can develop the nation and create more jobs in the economy,” he said.

GNA

Ghana remains safest country to invest despite economic challenges President Nana Addo Dankwa AkufoAddo says Ghana remains the safest and best country to invest in West Africa, despite current economic challenges.

The President said the decision by automobile giants like Nissan to establish an assembly plant in Ghana confirms the government’s commitment to helping the private sector grow.

Speaking at the commissioning of a new Assembly Plant for Nissan at Tema, Nana Akufo-Addo said Ghana is gradually becoming a hub for vehicle production.

“I’m delighted that in the automobile sector we have successfully attracted investments from a number of global iconic brands including Volkswagon, Toyota, and Nissan. Other original equipment manufacturing groups including Hyundai, KIA, and Isuzu have also reached advanced stages of establishing commercial production facilities in Ghana.”

“These new investments have been realised on the back of the new Ghana Automotive Development Policy and programme which offers very generous physical incentives and creates an attractive ecosystem for the automotive industry. We recognise the establishment of assembly plants alone does not create employment opportunities expected from the automotive industry,” he added.

FRIDAY, APRIL 1, 2022

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Be prudent, diligent, law cautious land purchasers

By Dapuri M Cephas

T

he gradual increase in infrastructure development has heightened the sales and purchase of land in Ghana and has influenced the appreciation of land prices.

People migrate to settle in the cities and wish to build permanent structures for residence, business purposes and what have you. Sales and purchase of land, therefore, has become common currently, unlike what pertained several years ago, when when sales of land were sparingly known to the Ghanaian society.

The more Ghanaians transact in sales and purchases of land, the more imperfect sales are made. The courts have consistently warned purchasers to be diligent and prudent in purchasing land.

A prudent and diligent land purchaser must pay attention to, but not be restricted to the following; A prudent buyer must inspect the land to verify whether the vendor is in possession of the land.

Possession in this context simply means

physical occupation of the land (legally termed as corpus possessionis).

“Possession is a matter of law, but is established by physical acts” (Brown v Quarshiga (2003-2004) SCGLR 930, Kludze JSC at Pp.951).

If the land is occupied by any person other than the vendor, the purchaser must seek and find what interest that person has over the land.

If someone other than the vendor is in possession of the land but the purchaser goes ahead to buy and enter into the land, the person in possession may maintain an action in trespass against the purchaser.

This reflected in the Ghanaian case of WutaOfei v Danquah [1961] GLR 487, when the Court held that any slightest amount of possession a person has over a land, gives him a right of action in trespass.

The rationale is that “person in possession of land is presumed to be the absolute owner thereof” (see Section 48 of NRCD 323; and Aidoo v Adjei [1976] 1 GLR 431).

In Shell Ltd Ghana, the Court speaking through Date Bah JSC warned that as far as structures, whether permanent or temporary are on the land, the purchaser should not presume the possessors to be squatters, even if the vendor warrants such.

If someone is on the vendor’s land, the purchaser must find out what interest the possessor has in the land.

Prudent

A prudent buyer must not presume the interest of the vendor to be valid but must take necessary steps to verify his interest in the land.

The purchaser may seek information from the Lands Commission as to the previous owners and how the vendor acquired the said land. This will include verifying documents indicating the tile of the vendor over the land.

I will conclude with a strong caution given by the Court Appeal in Boateng v Dwinfuor [1979] GLR 360 at Pp.366-7, the Court stated as follows “... if the purchaser has, whether deliberately or carelessly, abstained from making those enquiries into the title of his vendor that a prudent purchaser would have made, he will be affected by constructive notice of what appears upon the title. Apart from investigating the deeds, a prudent purchaser will inspect the land itself. If any of the land is occupied by any person other than the vendor, this occupation is constructive notice of the estate or interest of the occupier, the terms of his lease, tenancy or other right of occupation, and any other rights of his.”

Be a diligent and prudent purchaser of land to save yourself from series of land litigations.

Engage in a diligent and prudent transaction to secure a valid transaction which is litigationfree.

The writer is a level 400 law student of Kings University College, Ghana.

E-mail: Cephasdapuri018@gmail.com

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| E-COMMERCE

FRIDAY, APRIL 1, 2022

The booming food industry in Ghana as a result of e-commerce growth

A

ccording to the Ghana Food Index released in 2020, the Ghanaian food and grocery retail market were valued at USD 311.7 million in 2018 and it is expected to grow at a CAGR of 14.6% to reach over USD 500 million by 2026. The increasing disposable income of the people in Ghana will increase the buying power of people for consumer goods. According to the World Bank, in 2017, the household final consumption expenditure grew by 11.3% in Ghana. With recent economic hardships and global pandemics, it has become increasingly imperative that we all take the food industry seriously. Fortunately, it has boomed over the past few years in Ghana and this can be greatly attributed to e-commerce growth.

Ghanaians spend most of their income on food and non-alcoholic beverages which account for 41% of total expenditure. Ghana is also the 11th largest grocery retail market in Africa, and the second largest in West Africa only after Nigeria. Hence, online food delivery is gaining momentum through companies such as Jumia.

Below, we examine this recent but highly beneficial trend.

E-commerce in Africa is still in its infancy by global standards standing at less than 2% vs 20% in China or 12% in the USA. Despite this, e-commerce remains promising with rising GDP contribution indicating a consumptiondriven region and job creation. New innovations in the food industry, one of the world’s oldest and largest industries, are creating attractive

opportunities for women and youth on the African continent. More than 5 million jobs can be created in 2025 in Africa by Online Marketplace.

E-commerce companies through the internet have provided affordability and convenience while also ensuring that local businesses are developed. The online food business has seen a great spike in recent years as more and more people embrace technology and e-commerce.

The increase in the number of internet and smartphone users has played a key role in this regard. Today, many people enjoy their favourite meals from the comfort of their homes and offices by just ordering online and getting the meals delivered. These e-commerce brands are also empowering many small scale food vendors to reach more customers online. The growth potential is exponential and brings forth widespread opportunities for the youth and future generations.

Innovations and technologies introduced over the past few years have also made it easier for restaurants and food vendors to manage their orders and maximize profits. Mobile applications, websites, order tracking devices, quality packaging, easy payment platforms and a timeless customer feedback service are among the many technological advancements in this industry. With the covid-19 pandemic being widespread in 2020, providing consumers with many quality affordable options to choose from while staying safe at home and supporting restaurants to grow remain some of the greatest

achievements thus far.

Taking an e-commerce company like Jumia into perspective, it can be said that the online food business in Ghana has seen very dynamic trends over the past few years. About 56% of the total orders come from men while people between the ages of 25-34 years use Jumia Food the most.

This can be attributed to their strong knowledge of technology and their adaptation to new and improved innovations. The majority of meal orders are for lunch while Fridays appear to be the days when there are most orders on Jumia.

All in all, there appears to be great potential for the online food market as advancements in technology and internet penetration increase.

When covid-19 peaked and lockdowns were enforced, everyone sort of embraced the concept of food delivery as it helped them to stay home and stay safe while still enjoying their preferred meals. The delivery agents who are at the forefront of the delivery process have a big role to play in the success or otherwise of this market. Training and logistics are key when it comes to supporting them to do their jobs.

Nearly one out of every 5 people who own smartphones order food online. This gives an indication that the future is bright for the food industry in Ghana and e-commerce will continue to play its part. The next few years will be very challenging also and that will shape the future of the online food delivery market in Ghana. How successful it becomes will hinge on the roles played by all stakeholders.

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| F E AT U R E

FRIDAY, APRIL 1, 2022

Investing for impact and profit

E

nvironmental, social, and governance (ESG) standards are the talk of the investment world these days. But despite the trillions of dollars of investments that have been labeled “ESG,” this form of investing has yet to have much real-world impact.

This is especially true on the environmental front (though such investments’ social impact has not been much more evident).

Investor coalitions to combat climate change have exploded onto the scene, promising to steer a massive amount of capital toward “green” businesses and industries. At last year’s United Nations Climate Change Conference (COP26), private financial institutions pledged to mobilize $130 trillion – a figure greater than global GDP – for clean energy. And yet, the climate outlook is only worsening. Last month’s report from the Intergovernmental Panel on Climate Change offered “the bleakest warning yet” about what awaits humanity on a rapidly warming planet.

Welcome to the world of greenwashing: Though firms’ owners have committed to cutting carbon dioxide emissions, they have not actually ordered firms’ managers to do so. But, instead of blaming investors or companies, ESG activists should consider why there is such a large, persistent gap between public commitments and action.

Simply put, climate advocates have failed to persuade investors and firms to act because they have failed to understand what ultimately drives business.

Like it or not, most investors quietly share Milton Friedman’s view that “the social responsibility of business is to increase its profits.” Investment managers hear from clients when their financial returns are too low, not too high. Most investors would like to do good in addition to doing well, but they also prefer it when the right hand can claim ignorance of what the left hand is doing

– when they can seize on the exhortation to “save the world” while continuing to maximize profits with ruthless efficiency.

ESG advocates should acknowledge investors’ reality rather than trying to fight or change it. Because businesses will be held accountable by their investors if they do not make more money, ESG proponents must make the business case for such standards.

If a company’s positive ESG impact will increase its profits, investors will stop at almost nothing to maximize that impact.

For the business case to be persuasive, it needs to be thoughtful and realistic.

According to research by Arabesque, 88% of “operational performance studies show that solid ESG practices result in better operational performance.” But while ESG can unlock shareholder value, not all ESG actions will boost profits. For example, whereas raising wages by 10% will benefit employees and help to attract and retain talent, tripling wages would likely endanger a firm’s financial viability.

Investors therefore should identify the “material” ESG issues that directly affect a firm’s bottom line. Financially immaterial ESG issues can still be relevant for overall impact, but as George Serafeim of Harvard Business School puts it, “spending resources on immaterial issues is like philanthropy.”

Identifying material ESG issues is not always easy. The French retirement home Orpea was highly rated in ESG terms; but earlier this year, its stock price fell by 60%, following allegations that it was mistreating elderly patients.

Investors also must set priorities among the various ESG components. ESG ratings are a weighted average of hundreds of indicators.

Even if all were material, it would not be feasible for any firm to set hundreds of new goals for itself. Instead, investors must focus on the ESG initiatives that will boost shareholder value the most. Collaborative

platforms like ESG for Investors offer free tools with which to frame such an approach for more than 2,000 firms.

Financial incentives will elicit the desired response from investors and firms much more reliably than will exhortations to save the planet. By focusing on ESG actions that will unlock the most shareholder value, we can create a virtuous circle between financial returns and real-world impact. Research by ESG for Investors suggests that adopting best practices on just two key ESG issues – emissions and waste management – can boost a firm’s share price by 22%, on average.

If all firms reduced their CO2 emissions in line with their most advanced peers, global emissions would fall by 65%, and those firms’ share prices would increase by 8%, on average. Moreover, adopting best practices in waste management would reduce global waste by 72% and give shareholders a 5% windfall, on average.

Now that we have these new data and tools, ESG proponents should stop bickering and start recognizing ESG for what it is: a tremendous business opportunity. If you are an investor who wants to make more money, you should embrace ESG thoughtfully, with a focus on improving material issues.

And if you are an ESG activist, you should urge investors to do their (traditional) job seriously, by identifying where maximizing positive impact also maximizes profit.

Once these basic principles are widely adopted, we can start to add more complexity.

There will need to be more discussions about measuring and auditing impact, fleshing out norms and standards, and adding nonfinancially material impact into the mix. An unwavering business approach could unlock the potential of old concepts, giving them – and all of us – a more promising long-term outlook.

Project syndicate

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| C O M M E N T S /A N A LY S I S

FRIDAY, APRIL 1, 2022

Emirates Aviation University holds 5th annual Water Rocket Competition in collaboration with Boeing

BY KAUSHIK BASU

T

he Emirates Aviation University has held its 5th annual Water Rocket Competition, in collaboration with Boeing. With the EAU Campus as the backdrop, close to 100 students across 12 UAE schools came together to construct a simple water rocket at the university’s special workshop.

The students, working in groups of four, were tasked to design and construct a rocket using simple materials, and creating the conditions for optimal aerodynamics that could achieve the greatest distance when launched at an angle of 45 degrees.

The students were allowed two hours to build the rockets, using materials like plastic bottles, foot pumps, clay blocks, electrical wiring tape, as well as grocery bags and plastic folder sheets. Teams could only power the rockets using water and air pressure propulsion, and were encouraged to design and experiment with creative nose cones and fins for their rockets.

The teams had two attempts to test the longest distance their creations could reach.

After careful deliberation, judging panel from both EAU and Boeing selected Our Own High School as the winning school, with Al Maaref Private School as the first runner up and Delta English School as the second runner up.

Dr Ahmad Al Ali, Vice Chancellor of Emirates Aviation University said: “We are delighted to once again bring in the best and brightest future engineers and challenge them with this competition for the fifth time. We had some extraordinary entries this year and we congratulate the participants on completing the Water Rocket Competition. We hope they

are inspired to pursue further studies for an exciting and diverse career in engineering. We thank also Boeing for their support and for making this challenge a success once again.”

Kuljit Ghata-Aura, president of Boeing Middle East, Turkey and Africa (META), said: “Boeing people and products have powered giant leaps in human space exploration over the past five decades. It was therefore inspiring to see the creativity and imagination of these young engineers. We thank the Emirates Aviation University for this strong partnership, which raises the importance of STEM education, and congratulate the winning teams.” Operating on the principle of Newton’s third law of motion, the water rocket concept aims to prepare all prospective aviation engineers who are looking to enrol in any of Emirates Aviation University’s (EAU) many Engineering and aviation related programmes.

About Emirates Aviation University Emirates Aviation University (EAU), the education arm of the Emirates Group, is the Middle East’s leading university for aeronautical engineering, aviation management, logistics & supply management, aviation safety and aviation security studies.

The University is accredited by national and international awarding bodies and authorities and has been awarded an overall score of 5 Stars by QS Stars University Ratings for its outstanding performance and academic excellence across a wide range of categories.

EAU has well established partnerships and collaborations with highly respected education and commercial aviation institutions around the world, putting students at the forefront of their chosen field.

Students can choose from training,

undergraduate or postgraduate programmes combining the highest academic standards with the latest aviation industry developments and knowledge. While an experienced faculty, multi-national student body and our purposebuilt campus in the heart of Dubai ensures a vibrant and effective learning environment. As the education arm of the Group, EAU offers its top performing undergraduate students a onesemester internship opportunity within the Emirates Group to enable them to gain first hand exposure of working in the real world and to integrate the theory knowledge with practical application.

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| H E A LT H

FRIDAY, APRIL 1, 2022

Independence, national attitudes

BY AHUMAH OCANSEY

W

hen, with a thunderous ovation, we shot our hands into the air, and with joy exclaimed Freedom! Freedom!

Independence! Singing, dancing, and reeling with joy, what did independence and freedom mean to us?

In our 65th year of independence, we are riding the choppy seas of nationhood, our compass awry, uncertain of our destination.

In our 65th year of independence, we are like travellers wandering on the desert, painfully and vainly moving from one mirage to the other.

In our 65th year of independence, a desperate hunger for bread, shelter, work and money claws at our stomach.

In our 65th year of independence, we are full of questions: wondering which government would provide the leadership to transform Ghana, and wondering how we shall attain our vision, plans and aspirations.

In this article, we shall look at what impact our attitudes have made on the nation, since independence.

On analysing Nkrumah’s statement, we shall observe two salient conditions fundamental to the assurance of independence.

The first is change of mind; the second is hard work. These two conditions are inseparable: hard work depends on the attitudes and mind of the Ghanaian; and the attitudes affect our relationship with the nation.

Ghana’s independence merely delivered us from the political control of the British. It was a specie of freedom; not the full freedom, for, indeed, freedoms are of kinds.

It did not mean we were completely free! True freedom is psychological. It is here that the greatest struggle lies.

Independence led to the transfer of allegiance from a foreign power to our national government.

What confronted Nkrumah then was how Ghanaians were to adapt to the new phenomenon of a Ghanaian government.

Nkrumah remarked on this and said: “One subject which should occupy our attention during these

discussions is the subject of the Ghanaian attitude to state property. Under the colonial regime, the people were made to feel so remote from the government and so divorced from it that they grew up with the idea that the government and the people were two different entities. In those days, government property was treated with deliberate negligence. Unhappily, this attitude has, to a great extent, remained, and it is causing a good deal of harm to our society today.” - Nkrumah, at Winneba Ideological School, February 3, 1962.

Here we have a succinct picture of the first major attitudinal change which is a prerequisite for national development: we must see government as our own creation, from which we derive our sustenance, and to which we give our energies and pledge our fealty.

A cursory look at our environment bespeaks negligence, waste, and compromise of national assets and, even, our own things.

These elements are outward reflection of our inner state of mind.

Attitudes Attitude should then be understood to mean our outlook on things; how we see things, and the interpretation we put on matters. And our attitudes flow from our personal values.

If we are not careful in taking good care of national assets, to wit: vehicles, bungalows, electronic gadgets, hospitals, schools, monies and so on, it means we still see government as an entity that is not part of us, and to whom we could do whatever we fancy, without accounting for our actions.

The Public Accounts Committee (PAC) reports of huge financial misappropriations and property misuse, among others, are examples of negative mindsets inconsistent with nation building, or national development.

Distance It is remarkable that, whereas we pride ourselves in our parliamentary democracy, this has turned out to distance us from the idea of government, because of the partisan nature of such democracy.

Put differently, when one party is in government, the rest who do not belong to the party in government distance themselves from it, and wish to see it fail, for the other party to campaign on its failures, as a means of getting into power at

elections.

In other words, Nkrumah’s diagnosis of the panacea to our development is far from realisation; we still see government as the “other entity” that we don’t belong to!

And, to exacerbate such psychological alienation, the government in power tends to neglect or abandon whatever projects or even policies that have been initiated for the good of the country, by the previous government.

Independence and freedom imply responsibility. And responsibility is hard work.

That was what Nkrumah stressed. Hard work is not just an enormous expenditure of energy and resources.

Hard work entails vision, organisation, planning and management. Overlaying all these is integrity.

Whereas Nkrumah knew what he wanted for Ghana, and planned for them, and we began to see the beginnings of a beautiful dream, his premature exit from office doomed the development of this nation, as no one else had his drive and vision to realise what he fought for so much.

As we celebrate our 65th birthday, we must remind ourselves Ghana needs a master development plan which the ordinary citizens have bought into, and made integral to their life.

We have heard of a 40-year plan of the National Development Commission. How does it concern the ordinary person at Makola or Nima?

Do we even know the contents? Each Ghanaian should by now have had certain knowledge of the direction in which the nation is going, and what is expected of us.

Such knowledge would impact our attitudes towards our governments and the nation.

Myles Munroe, known as a great inspirational speaker and author, wrote in his book: The Burden of Freedom: “National independence does not guarantee freedom; it only proffers deliverance from imperialism.

The spirit of industry, work and responsibility determines the success and development of a nation.”

The writer is a lawyer. E-mail: akwesihu@ yahoo.com

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| R E A L E S TAT E B R O K E R AG E 1 0 1

FRIDAY, APRIL 1, 2022

Samsung 2022 products offering cutting-edge technologies and innovation

Samsung has showcased its 2022 line-up of Neo QLED 8K, soundbars, accessories and sustainability initiatives at its virtual Unbox & Discover event. With this new lineup, Samsung aims to redefine the role of television by creating beautifully designed, cutting-edge screens that offer more than just entertainment. This year’s products and features take the screen to new heights by providing one central hub to play, connect, work and more.

"We are focused on creating a seamless experience across all of our products, which allows consumers to effortlessly enjoy all their benefits. The 2022 Neo QLED 8K is designed to fulfil the needs and empower the passion of our consumers, and the innovations are sparked by their experiences,” said Jong-Hee( JH) Han, Vice Chairman, CEO and Head of Samsung Electronics’ DX (Device eXperience) Division.

“Neo QLED 8K also has the power to unlock new experiences as the most important device at the centre of the home.”

Samsung’s 2022 portfolio was developed from the vision of ‘Screens Everywhere, Screens for All,’ with TVs at the centre of users’ home and daily lives. In line with this vision, Samsung created devices that seamlessly connect to provide deep personalisation and connectivity ensuring there is a screen fit for every occasion and lifestyle. Historically, TVs and screens have been mainly associated with the act of “watching,” but Neo QLED 8K aims to

change this by expanding the user experience.

Neo QLED 8K: The Best Gets Better The 2022 Neo QLED 8K has been upgraded to bring the large screen experience to another level. At the heart is the Neural Quantum Processor 8K. The latest processor has 20 independent neural AI networks, each analysing the content’s characteristics and picture quality for optimal viewing, regardless of the source.

The Neural Quantum Processor 8K also powers a new technological innovation – Real Depth Enhancer. This scans the screen, and maximises contrast with the background by enhancing the object while keeping the background unprocessed. It works similarly to the way human eyes perceive images in real life so the object on screen stands out against the background.

The processor, combined with the powerful Quantum Mini LEDs, creates lighting that is precise and controlled so bright areas stay bright and the dark space around it stays dark – a feature we have dubbed Shape Adaptive Light Control. For example, the full moon will stay bright against the black night sky.

In fact, Samsung’s all new 2022 QLED received the world’s first ‘Pantone Validated’ certification in display from Pantone, the global authority on colour and creator of the Pantone Matching System (PMS) – meaning the models authentically reproduce more than 2,000 colours as well as the newly added 110 skin tone shades found in Pantone’s guidelines.

Additionally, these brilliant colours are

comfortable to watch with the new EyeComfort Mode. The feature uses AI technology to automatically adjust the brightness and colour temperature of the screen based on how light or dark the room is combined with the sunset/ sunrise information to optimise the most comfortable viewing experience.

Immersive Dolby Atmos Sound with Smart Features For true immersion, TVs and screens need powerful and nuanced sound to match the rich colours and sharp details. The Neural Quantum Processor 8K’s AI analyses what is on screen in real-time so that the Adaptive Sound features can track and move between speakers to precisely match the movement on screen.

Experiencing Your Screen To ensure the experience is as seamless as possible, the 2022 line-up is outfitted with new and smarter features and user interface, allowing Samsung TVs and screens to become the central hub to watch content, control devices, play games, work out and more.

Sustainability at the Core with ‘Going Green’ Samsung is always thinking about how the manufacturing process and the use of products impact the Earth’s environment, looking for ways to reduce its footprint and build a better future for the planet.

Making it Personal with Accessories* Each consumer has their unique taste and needs when it comes to TVs, which is why Samsung created new accessories for its 2022 TVs that facilitate entirely new TV experiences.

FRIDAY, APRIL 1, 2022

| R E A L E S TAT E B R O K E R AG E 1 0 1

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Kwame Nkrumah Memorial Park must be more than a tourist attraction…adding a learning centre may not be a bad idea Part 2

PHILIP GEBU

I

n October 1935, the young Nkrumah traveled first to Britain in order to obtain an American visa. While in London he heard the news of the Italian invasion of Ethiopia.

He maintained: “My nationalism surged to the fore.” For many Africans and people of African descent, Ethiopia remained a point of pride and nationalistic sentiment, for along with Liberia it had been able to escape colonial rule. The Italian invasion spelt the end of this independence and anger was felt by Africans and people of African descent around the world. It is unknown whether Nkrumah attended any political meetings in

London concerning the invasion of Ethiopia.

Nevertheless, at this important juncture of his life he already possessed nationalist sentiments; he believed in freedom of African people. The fiery language and radical outlook of Zik’s newspaper and Wood impacted deeply on him.

His sojourn in the United States, which was to last for ten years, was to deepen his intellectual growth. Student in America, 1935-1945 Sherwood’s study of Nkrumah’s student years in America is an important work shedding light on a formative period of his life. Careful research in Lincoln’s files, correspondence and interviews with individuals who taught Nkrumah or were

his contemporaries offer rare glimpses into the world in which Nkrumah moved and was shaped by.

Of his undergraduate years from 1935 to 1939, Sherwood writes “Nkrumah was a good student.” At the age of 26, Nkrumah arrived at Lincoln University with “the equivalent of forty pounds in my pocket, a secondclass teacher’s certificate and a letter of introduction from Mr. S. R. Wood.”In 1936 he had won second place in the Kappa Alpha Psi oratorical contest, speaking on ‘Africa, the burden of the Negro.’ Two years later he won the Robert Fleming Labaree Memorial Prize in Social Science in which he submitted an essay entitled ‘Imperialism: Its Politics, Social and Economic Aspects.’ He graduated in 1939 with a BA in economics and sociology.

According to Sherwood, interactions between Africans and African Americans on the Lincoln campus were strained on account of cultural differences. Outside of classes there was little interaction between the few Africans and the African American students.

The cultural differences were manifested in the studiousness of the African students, which The Lincoln University Bulletin of Feb 1939 considered a “large contingent” in the Freshman class. These Africans planned “to pursue professional or graduate studies ... some [in] education, students and their determination to succeed was often perceived as an air of superiority by African-American students. At the beginning of 1939 Nkrumah was joined by fellow countrymen, Ako Adjei and K. A. B. Jones Quartey, along with other Africans including, Asuogo Udo Idiong and Abdul Karim Disn. Academic staff who taught Nkrumah observed his personal conduct and intellectual abilities. Dean Grim, Nkrumah’s lecturer in general biology, recollected the young Francis as: “Gentlemanly; of above average intelligence, quick to defend what he felt was right. Quiet and courteous. Strongly individualist.” Dr Kuehner, registrar at Lincoln University remarked: “Good student with limitations in ability at points in higher level college work. Loved controversy. Quiet.

Usually withheld his opinions except in debates (on the team). An eager questioner in class. Critical of any criticism of Great Britain, especially by a non-subject. Held strong views.

(His concept of primitive man for example).”

As Nkrumah's nationalist ideas were evolving during his early days at Lincoln, it is peculiar

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that he was “critical of any criticism of Great Britain.” No further explanation by Kuehner is posited. It is possible to surmise that Nkrumah was simultaneously anti­ colonial as well protective of the British motherland, particularly from students he felt had little understanding of British colonial rule. Had British colonial education inculcated a sense of loyalty in Africans - and even in Nkrumah?

Whatever the explanation, if onesome journalism, some law, and some medicine,” see NAG:SC21/122/2. According to the Lincoln University Bulletin of 1939, “All together, ... at least 65 students from Africa have registered in the college and seminary of Lincoln University over a period of 66 years”. accepts the truth of Dr. Kuehner’s observation, it reveals some of the contradictions and complexities inherent in Nkrumah’s thinking at an early stage. One contemporary, an African American by the name of Beverley Carter, described him as: thoughtful, reflective and considerate. He was the most liked of the foreign students on campus. He mixed well in contrast to a number of others from Africa... He seemed to take a personal pleasure from reading the great philosophers... Nkrumah was talking about Pan-Africanism throughout his later years at Lincoln. He talked about the independence of the then African colonies in way, which made many think of him as a dreamer.

Nkrumah’s studiousness earned him the post of philosophy assistant to Dr. Foster in the autumn of 1939. During his vacation, he stayed in Harlem with fellow student Thomas Dosumu-Johnson and frequently visited the Harlem National Memorial Bookstore where he was allowed to read in the back room, as he could not afford to purchase the books. He also visited the Schomburg Collection in Harlem.

Earlier, in 1937, the Dean of Lincoln, Frank W. Wilson, wrote a letter of introduction to the Council on African Affairs (CAA) on Nkrumah’s behalf. Wilson refers to Nkrumah as “a person greatly concerned about the entire African situation.” Nkrumah met the Secretary of the organization, Max Yergan. A great amount of Nkrumah’s time as a student was spent reading on philosophy, political science and history. His voracious reading included the work of Kant, Hegel, Descartes, Schopenhauer, Nietzsche, and Freud. Beverley Carter remarked that: “He was always well prepared but did not make fetish of studying.

He seemed to take great personal pleasure from reading of the great philosophers and this was in many ways a form of relaxation for him.” Two undated essays reveal Nkrumah’s intellectual interest in philosophy. One is entitled ‘Is Man Naturally Moral?’ and the other is entitled ‘The Philosophy of Property.’ The former is a two-page examination of this question from the perspectives of Aristotle, Kant, Rousseau, Hobbes, Machiavelli, Christian, anarchist and totalitarian perspectives. Nkrumah concluded by stating: “I subscribe to the theory that man is naturally amoral. That he is non-moral by birth, incapable of being good or bad, but his capability of moral or immoral action is determined as he grows in reason and intelligence amidst the mores and customs of his society.”

‘The Philosophy of Property’ examines the evolution of the concept of property from Hebrew, Hindu, Greek, Roman, and medieval

| NEWS

perspectives. The Church and modern views, including those of Adam Smith and Locke, and the Marxist interpretation are also outlined. It is interesting that in regards to the view of property as advanced by the French socialist, Proudhon, Nkrumah shows he is in disagreement with the Marxist conception of ownership. He wrote, “I wholly believe in individual rights and Nkrumah, Autobiography, p. 26. Nkrumah was also a member of the Philosophy Club at Lincoln University.

Earlier in the same piece he wrote of “the idealism and impracticability of communistic theories”. Moreover, he argued “communism seems to be unsuccessful in societies where it has been tried, because its principles are at variance with human nature, and even with the original nature of property itself.” Nkrumah did not define what he considered to constitute “human nature” nor “the original nature of property itself.” Apart from the question of the distribution of property in society, Nkrumah was also preoccupied with the state of the African continent, A contemporary of Nkrumah at Lincoln was Robert T. Freeman Jr, who stated that Nkrumah was committed to a United States of Africa. Another classmate, Dr. J. Jeffrey Higgs characterized Nkrumah as a “quiet, introspective, serious student, not particularly interested in socializing or engaging in local politics; (he had no) particular interest in African American problems.” The extent of Lincoln’s influence on Nkrumah is very difficult to determine.

One of his tutors, Dr. J. Newton-Hill, maintains: Nkrumah did not always make it clear how the institution was affecting him. I think in many areas he seemed to be somewhat affable among his fellow students and among certain members of the faculty. But Nkrumah had his mind pretty well made up when he entered Lincoln University and 1 don’t think he changed his general point of view very much while he was there. So I would say the effect of the institution on him was somewhat minimal except for the educational aspect of the work.

Another incident narrated by Newton-Hill involved the performance of a play at Lincoln, in which Nkrumah played the “reluctant part of a Nubian slave.” Furthermore, Newton-Hill claims: “I handed him the copy of the script and told him to read certain passages which I had previously selected. He read them with a complete lack of interest with a marked distaste, for in all those passages the Nubian slave was a rather despicable individual as

FRIDAY, APRIL 1, 2022

presented in that play.” Yet, Nkrumah was not aware that his tutor was testing him. He was told to read the entire play and return to rehearsals the following day. Nkrumah was to learn that the Nubian slave led a mutiny on board a ship and freed all the slaves aboard. He then accepted the part. This incident appears to demonstrate Nkrumah’s profound sense of racial dignity and desire for leadership. Aside from his academic work, which extensively absorbed his intellectual energies, Nkrumah had relationships with a few women and involved himself in political activities. During his period at Lincoln, the majority of students were male. However, the scarcity of friends is also attributable to Nkrumah’s single-minded political focus. He made the important comment - albeit retrospectively - that he considered, women, religion and money as forms of entrapment. He wrote: Unfortunately, the fact that I enjoy women’s company has led to a great deal of misunderstanding from those who look at my life from outside. I have never wanted to become too entangled with a woman because I know that I would never be able to devote enough attention to her, that sooner or later whether she was married to me or not, she would begin to wander away from me. I was afraid too, that if I allowed a woman to play too important a part in my life I would gradually lose sight of my goal. Few people have been able to understand this attitude of mine. Beverley Carter, however, claims that “On the personal side, he was attractive to the opposite sex.” Nkrumah himself reveals in his Autobiography that whilst preaching in a Baptist Church in Philadelphia he was introduced to two sisters by the names of Portia and Romana. This revealed history of Kwame Nkrumah shows the essence of having a centre of learning at the Memorial Park. We shall unveil more next week.

Philip Gebu is a Tourism Lecturer/Trainer. He is the C.E.O of FoReal Destinations Ltd, a Tourism Destinations Management and Marketing Company based in Ghana and with partners in many other countries. Please contact Philip with your comments and suggestions. Write to forealdestinations@gmail.com / info@ forealdestinations.com. Visit our website at www.forealdestinations.com or call or WhatsApp +233(0)244295901/0264295901.

Visist our social media sites Facebook, Twitter and Instagram: FoReal Destinations

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FRIDAY, APRIL 1, 2022

17

Make every drop count: An inclusive, integrated and innovative approach to water scarcity is critical

The world needs a more inclusive, integrated and innovative way of addressing the issue of water scarcity, which already threatens as many as 3.2 billion people living in vulnerable rural communities, the Director-General of the Food and Agriculture Organization of the United Nations (FAO), QU Dongyu, said today.

"We need solutions that tackle both the socio-economic and environmental dimensions of the interlinked problems of poverty, food, water and climate," Qu said in a video message to a highlevel roundtable at the 9th World Water Forum in Dakar, Senegal.

The World Water Forum is the world's largest event on water, organized every three years by the World Water Council with a host country. This year's edition was the first to be hosted in Sub-Saharan Africa.

Other notable speakers addressing the event on water for rural development included Adamou Mahaman, Niger's Minister of Hydraulics and Sanitation, and Abdoulaye Sene, Executive Secretary of the 9th World Water

Forum.

According to FAO's latest report - The State of Land and Water Resources for Food and Agriculture - water scarcity and pollution are stretching key agrifood systems around the world to breaking point. In much of Africa, water availability is so low that many countries don't have enough of it to grow food or to meet the demand from other sectors of the economy.

In all, 2.3 billion people already live in water-stressed countries, with over 733 million of them - or about 10 percent of the global population - living in countries with high and critical water stress. An even bigger number of people living in agricultural areas - 3.2 billion - are threatened by the risks that water scarcity poses for global food security and sustainable development. These are often the most vulnerable: smallholders and family farmers who see their harvests severely damaged by drought; the pastoralists who see their cattle and other livestock die of thirst; or the fisherfolk who see their fishing grounds shrinking and degraded.

"We need to recognize land and water rights for smallholder farmers, the poor, women, youth and Indigenous Peoples, and increase transparency and participation in resource management," Qu said.

Agriculture's role Agriculture accounts for more than 70 percent of all freshwater withdrawals in the world, which is why there's a need to focus on a "More Food per Drop" approach based on new forms of water management, Qu said in his video message to the forum.

While the tremendous progress witnessed in food production in the last half century has made it possible to feed a rapidly growing population - thanks to irrigated agriculture that produces about 40 percent of the world’s food on only 20 percent of global cropland - there is still scope for improvement.

The climate crisis is also adding to the pressures on the availability of water, which is why "we need to protect and restore our ecosystems through green and climate-resilient agricultural practices that enable the sustainable

production of agrifood products, while minimizing impacts on biodiversity and reducing greenhouse gas emission," Qu said.

"To move forward, at the scale and speed required, we need significant investment at all levels: political, financial and technological, and by societies," Qu said.

FAO is already supporting countries to attract and access climate finance and to implement climate-resilient innovation across agrifood systems, including through the Global Environment Facility and the Green Climate Fund.

The organization's Strategic Framework for the next decade also supports the 2030 Agenda for Sustainable Development through the transformation to more efficient, inclusive, resilient, and sustainable agrifood systems for better production, better nutrition, a better environment, and a better life for all, leaving no one behind.

18

| MARKET REVIEW

FRIDAY, APRIL 1, 2022

Weekly Market Review For Week March 25, 2022 MACROECONOMIC INDICATORS

Best 5 Traded Equities by Volume for the Week Ending 25/03/2022

Trend in Market Indices - 2022 3,000

Q3, 2021 GDP Growth

6.6%

Average GDP Growth for 2021

5.3%

2021 Projected GDP Growth

5.0%

BoG Policy Rate

17.0%

1,500

13.90%

1,000

Inflation for February, 2022

15.7%

End Period Inflation Target – 2021

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

CAL, 1.40%

GGBL, 1.19%

2,000

SIC, 0.15%

500 0

MTN, 96.53%

04 /0 1/2 11/ 2 01 /2 18 2 /0 1/2 25 2 /0 1/ 01 22 /0 2/ 08 22 /0 2/ 15 22 /0 2/ 22 22 /0 2/ 01 22 /0 3/ 08 22 /0 3/ 15 22 /0 3/ 22

Weekly Interbank Interest Rate

2,500

GOIL, 0.23%

80.1%

GSE CI

MTN

CAL

GGBL

GOIL

SIC

GSE FSI

Best 5 Traded Equities by Value for the Week Ending 25/03/2022 YTD Performance of GSE Market Indices 1.00%

GGBL, 2.40%

CAL, 1.07%

GLD, 3.33%

SIC, 0.58%

0.50% 0.00%

/0

-1.00%

11

/0

1/2 2 1/2 18 2 /0 1/ 25 22 /0 1/ 01 22 /0 2/ 08 22 /0 2/ 15 22 /0 2/ 22 22 /0 2/ 01 22 /0 3 08 /22 /0 3/ 15 22 /0 3/ 22

-0.50%

04

STOCK MARKET REVIEW The Ghana Stock Exchange strengthened for the week on the back of gains by 4 counters.

The GSE Composite Index (GSE CI) gained 3.44 points (+0.13%) to close at 2,742.06 points, reflecting year-to-date (YTD) loss of 1.69%. The GSE Financial Stocks Index (GSE FI) also, gained 6.24 points (+0.29%) to close at 2,173.53 points, reflecting year-to-date (YTD) gain of 1.01%.

-1.50% -2.00% -2.50%

MTN, 91.61%

-3.00% -3.50%

MTN

-4.00% GSE CI

CAL

SIC

GSE FSI

Volume and Value of Trades for Week Ending 25/03/2022

200.00% 162.50%

80,000,000

150.00%

70,000,000 60,000,000

100.00%

50,000,000 40,000,000

50.00%

30,000,000 20,000,000

▲46.04%

Access Bank Ghana PLC

1.9

2.09

▲10.00%

SIC Insurance Company Ltd.

0.2

0.21

▲5.00%

Cal Bank PLC

0.84

0.85

▲1.19%

64,030.00

GCB Bank PLC

5.18

5.16

▼0.39%

64,020.00

VOLUME

25 /0 3/ 22

158.6

24 /0 3/ 22

108.6

23 /0 3/ 22

Gain/Loss (%)

22 /0 3/ 22

21 /0 3/ 22

SI C

-

Closing Price

46.04%

-33.65%

25.00% 21.43% 18.28%

-33.33% -25.00% -9.77%

0.00%

10,000,000

Opening Price

-50.00%

-4.50%

VALUE

CURRENCY MARKET

Market Capitalization for Week Ending 25/03/2022 -0.69% -0.70% -0.71% -0.72% -0.73% -0.74% -0.75% -0.76% -0.77% -0.78% -0.79%

64,010.00 64,000.00 63,990.00 63,980.00

22 /0 3/ 22 23 /0 3/ 22 24 /0 3/ 22 25 /0 3/ 22

3/ 22

63,970.00

21 /0

NewGold

GGBL

5 Best & 5 Worst Performing Stocks YTD Return

Price Movers for the Week

Equity

GLD

GL D GG BL ET I EG M L TN GH BO PP FM L PB AC C CE SS

Market capitalization inched up by 0.06% to close the week at GH¢64,021.57 million, from GH¢63,985.35 million at the close of the previous week. This reflects YTD decrease of 0.73%.

Trading activity recorded a total of 70,271,365 shares valued at GH¢78,490,246.30 changing hands, compared with 18,582,177 shares, valued at GH¢24,300,166.61 in the preceding week.

MTN dominated both volume and value of trades for the week, accounting for 96.53% and 91.61% of volume and value of shares traded respectively .

The market ended the week with 4 advancers

MARKET CAP

YTD%

The Cedi appreciated marginally against the USD after declines in nine consecutive weeks. It traded at GH¢7.1121/$ on Friday, compared to GH¢7.1125 /$ at week open, reflecting w/w appreciation and YTD depreciation of 0.01% and 15.55% respectively. This compares with YTD appreciation of 0.58% a year ago.

The Cedi however depreciated against the GBP for the week. It traded at GH¢9.3827/£, compared with GH¢9.3533/£ at week open, reflecting w/w and YTD depreciations of 0.31% and 13.38% respectively. This compares with YTD depreciation of 0.38% a year ago.

The Cedi strenghtened against the Euro for the week. It traded at GH¢7.8134/€, compared with GH¢7.8451/€ at week open, reflecting w/w appreciation and YTD depreciation of 0.41% and 12.96% respectively. This compares with YTD appreciation of 4.60% a year ago.

The Cedi lost grounds against the Canadian Dollar for the week. It opened at GH¢5.6371/C$ but closed at

GH¢5.6837/C$, reflecting w/w and YTD depreciations of 0.82% and 16.58% respectively. This compares with YTD depreciation of 0.47% a year ago.

Treasury Yield Curve 22 20

01/01/22

21/03/22

25/03/22

USD/GHS

6.0061

7.1125

7.1121

▲0.01

▼15.55

GBP/GHS

8.1272

9.3533

9.3827

▼0.31

▼13.38

EUR/GHS

6.8281

7.8451

7.8134

▲0.41

▼12.61

CAD/GHS

4.7416

5.6371

5.6837

▼0.82

▼16.58

EUR/GHS

6.8281

7.6405

7.6934

▼0.69

▼11.25

CAD/GHS

4.7416

5.4792

5.5280

▼0.88

▼14.22

17.11

14

Gold

19/03/22

12/03/22

05/03/22

26/02/22

19/02/22

12/02/22

05/02/22

29/01/22

22/01/22

USD GBP CAD GOVERNMENT SECURITIES MARKETEUR Government raised a sum of GH¢733.21 million for the week across the 91-Day, 182-Day and 364-DayTreasury bills, compared to GH¢1,178.22 million raised in the previous week.

The 91-Day Bill settled at 14.14%, from 13.42% last week whiles the 182-Day Bill settled at 14.51%, from 13.61% last week. The 364-Day bill also settled at 17.10%.

The table and graph below highlight primary market yields at close of the week.

Year Open

Previous Yield %

Current Yield %

01/01/22

14/03/22

18/03/22

12.53

13.25

13.42

13.21

13.55

13.61

16.64

16.96

16.96

19.75

19.75

19.75

20.50

20.50

20.50

21.00

20.75

20.75

18.80

21.75

21.75

18.10

18.10

18.10

10-Yr Bond

19.75

19.75

19.75

15-Yr Bond

19.75

19.75

19.75

20-Yr Bond

20.20

20.20

20.20

Commodities

Year Open

Brent crude oil (USD/bbl)

77.78

Gold (USD/t oz.)

1,828.60

Cocoa (USD/ MT)

2,520.00

Cocoa (USD/ MT)

2,520.00

Source: https://www.investopedia.com/ terms/m/monetarybase.asp

▲1.22

▲7.10

▲0.42

▲3.01

0.00

▲1.88

1,500

0.00

0.00

0.00

▼1.19

0.00

15.69

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

107.93

120.65

1,929.30

1,954.20

2,537.00

2,562.00

2,537.00

Chg %

YTD %

▲11.79

▲55.12

▲1.29

▲6.87

▲0.99

▲1.67

▼1.67

▲0.67

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

3,000 C O 2,500 C O 2,000 A

0.00

Week Close

ABOUT CIDAN

International Commodity Prices - 2022

YTD Chg (%)

& G O L D

140 120 100 80 60

1,000

40

500

20

0

0

Gold

Brent Crude

Monetary Base: The monetary base (or M0) is the total amount of a currency that is either in general circulation in the hands of the public or in the form of commercial bank deposits held in the central bank’s reserves. This measure of the money supply is not often cited since it excludes other forms of non-currency money that are prevalent in a modern economy.

Source: www.investing.com

WoW Chg (%)

0.00

Week Open

2,580.00

Cocoa

BUSINESS TERM OF THE WEEK

01/01/22 08/01/22 15/01/22 22/01/22 29/01/22 05/02/22 12/02/22 19/02/22 26/02/22 05/03/22 12/03/22 19/03/22

12/03/22

19/03/22

26/02/22

05/03/22

12/02/22

19/02/22

29/01/22

05/02/22

15/01/22

22/01/22

01/01/22

08/01/22

15/01/22

08/01/22

01/01/22

-20.00

7-Yr Bond

-10%

Prices of Cocoa advanced for the week. The commodity traded at US$2,562.00 per tonne on Friday, from US$2,537.00 last week, reflecting w/w and YTD appreciations of 0.99% and 1.67% respectively.

-15.00

6-Yr Bond

0%

Gold prices inched up on Friday and for the week, on the back of geopolitical tensions fed by the war in Ukraine and inflation concerns. Gold settled at US$1,954.20 from US$1,929.30 last week, reflecting w/w and YTD appreciations of 1.29% and 6.87% respectively.

-10.00

5-Yr Bond

10%

rude Oil prices rose to over $120 a barrel on Friday, as traders reconciled the impact of a missile attack on an oil distribution facility in Saudi Arabia with a possible release of oil reserves by the United States. Brent futures traded at US$120.65 a barrel on Friday, compared to US$107.93 at week open. This reflects w/w and YTD gains of 11.79% and 55.12% respectively.

0.00

3-Yr Bond

20%

COMMODITY MARKET

5.00

2-Yr FXR TN

14.14

10

YTD Performance GBP of the EUR Ghana CAD Cedi USD against Selected Currencies

364 Day TB

30% 14.51

12

10.0000 9.0000 8.0000 7.0000 6.0000 5.0000 4.0000 3.0000 2.0000 1.0000 0.0000

182 Day TB

40%

16

Exchange Rates: Ghana Cedi vs Selected Currencies

91 Day TB

50%

18.10

18

Source: Bank of Ghana

Security

60%

19.00

YTD %

/0 1/ 08 22 /0 1/ 15 22 /0 1/ 22 22 /0 1/ 29 22 /0 1 05 /22 /0 2/ 12 22 /0 2/ 19 22 /0 2 26 /22 /0 2 05 /22 /0 3/ 12 22 /0 3/ 22

Change

01

Week Close

70%

20.20 19.75 19.75

19.75

2y r 3y r 5y r 6 yr 7y r 10 yr 15 yr 20 yr

Week Open

-5.00

21.75

91 Da y 18 2D a 36 y 4D ay

Year Open

YTD Performance of Selected Commodity Prices

20.75

Weekly Interbank Foreign Exchange Rates Currency Pair

19

| MARKET REVIEW

FRIDAY, APRIL 1, 2022

Cocoa

Brent Crude

B R E N T C R U D E

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.

MONDAY, FEBRAURY 14, 2022

WWW.BUSINESS24.COM.GH

NO. B24 / 316| NEWS FOR BUSINESS LEADERS

How to eat Russia’s oil lunch

By Ricardo Hausmann

A

funny thing happened on the way to net zero. While environmental, social, and governance standards were forcing oil companies to divest from fossil fuels, and while the United States was tightening its oil production policy and canceling the proposed Keystone XL pipeline on environmental grounds, Russia decided to invade Ukraine.

The US and Canada quickly declared an embargo on Russian oil, while the European Union – which is more dependent on Russian energy – struggled to devise a coherent policy. With energy prices skyrocketing, Western governments focused on increasing nonRussian supplies, including by recommissioning European coal plants and expanding US oil and natural gas production. Cynics could argue that this is an Augustinian case of “grant me chastity and continence, but not yet.” Clearly, a more radical rethink of energy geopolitics and decarbonization is necessary to confront the Russian threat.

Russia’s new aggressiveness has been enabled by its oil boom. The country’s oil production declined precipitously after the breakup of the Soviet Union in 1991, reaching a nadir of 6.1 million barrels per day in 1998 – five million fewer than a decade earlier.

But output subsequently recovered completely, reaching a record 11.7 million barrels per day in 2019.

Increased production and long periods of high prices gave President Vladimir Putin the resources to beef up Russia’s army and throw his weight around. For example, Russia annexed Crimea in 2014, after a decade of high oil prices and rising market share had filled the Kremlin’s coffers.

In light of Putin’s current war against Ukraine, Europe has announced plans to wean itself off Russian energy. But, to a large extent, this is a fool’s errand. As the world learned during the 1973 Arab oil embargo, it does not really matter who embargoes whom in an integrated global energy market. What counts is how much of the world’s oil

supply the aggressor can hold up. If this share is significant, energy will become more expensive for everyone.

If Russia is set to remain aggressive and dangerous, the strategy should be to curtail its share of the global energy market as much as possible. But how can this be done? Which countries would benefit from such a strategy, and hence help make it happen? And can the effort be compatible with decarbonization goals?

The answers to these questions may be somewhat surprising. To be sure, the EU and the G7 would obtain security benefits by helping to reduce Russia’s share of the global energy market. They can do this by restricting Russia’s access to international finance and oil-production technology, and by imposing a tax on Russian energy in order to limit the country’s market access.

But OPEC also stands to gain from such a strategy. In December 2016, when oil prices were low, Russia entered into an alliance with OPEC to curtail production and prop up prices in a broader structure known as OPEC+. The deal worked to Russia’s advantage. By 2019, OPEC had cut production by 2.3 million barrels per day (with Saudi Arabia reducing output by 573,000 barrels per day), but Russia increased production by 337,000 barrels per day.

For OPEC, an alliance with Russia no longer makes sense. Instead, OPEC has an incentive to weaken an important competitor that has taken market share from its members in the past 25 years. After all, most OPEC production is in countries with large reserves. If the world is to decarbonize, those reserves will remain underground after 2050. So, producers are competing to monetize their reserves rather than leaving them stranded.

The more that Russia is constrained, the more oil OPEC members will be able to sell.

The same logic holds for the US. The country is

FRIDAY, APRIL 1, 2022

endowed with many well-known reserves of tight oil and gas, which have a breakeven price of less than $60 per barrel. In addition, natural gas in the US currently trades at about $5.50 per million British thermal units – a small fraction of prices in Europe, justifying major investments in liquefied natural gas trains to export output to Europe and elsewhere.

From an environmental standpoint, US oil and gas projects have the advantage of being quick to execute and wind up. A tight oil or gas well produces over 85% of its output in the first two years, whereas traditional oil fields can take up to a decade to develop and then run for decades, well into the period in which the world should be approaching net zero. So, a burst of US oil production aimed at reducing Russia’s global market share need not be long-lived.

Finally, the environmental movement can join the effort. Decarbonization requires cutting global oil production. Russian oil is heavier than most OPEC or US oil, meaning that it generates more carbon dioxide per unit of energy. It is also sour, meaning that it contains a lot of sulfur, a nasty contaminant.

Reducing Russia’s oil production may therefore be a good way to cut global emissions while keeping the world adequately supplied with energy until cleaner alternatives are developed.

China is likely to oppose this strategy. But in 2019, it purchased only 2.4% of its natural gas, 14% of its coal, 18.4% of its crude oil, and 13.4% of its refined products from Russia. Pursuing an uncooperative agenda with its main energy suppliers is thus not a costless strategy for China. Moreover, solving the logistical problems constraining Russian energy exports to China will be time-consuming and expensive, providing Russian producers with only partial respite.

The world will be better off if Russia is defanged.

Assembling an international coalition to do this is made easier by the shared incentive to eat Russia’s oil lunch. OPEC will need to reconsider its relationship to Russia and to oil-consuming countries, which are needed to curtail Russian production. The G7 and the rest of the EU will need to engage in fresh thinking, too. But the incentives can be aligned.

And a safer world may be the result.

PUBLISHED BY BUSINESS24 LTD. TEL: 030 296 5297 | 030 296 5315. EDITOR: BENSON AFFUL EDITOR@BUSINESS24.COM.GH. +233 545 516 133.