Business24 Newspaper 4 April 2022 by Business24 Online

Hollard CEO named woman of the decade

Africa in stronger position to address challenges in the pharmaceutical industry 03 NEWS FOR BUSINESS LEADERS

BUSINESS24.COM.GH | MONDAY, APRIL 4, 2022

Gov’t to recover GH¢1.5m from 251 defaulting data handlers PATRICK PAINTSIL

he Data Protection Commission (DPC) last week submitted a list of some 251 defaulting data control and management firms to the At to r n ey- G e n e ra l’s office to start the legal process of retrieving an estimated GH¢1.5m in default and penalty payments. The list is the first batch of a bigger database of data handling or controlling firms that have either not acquired the right certification to handle bulk data or have failed to adhere to laid down regulations regarding the treatment of data in the country. Executive Director of the Commission, Patricia AduseiPoku, handed over the list of defaulters the Director of Public Prosecution Mrs. Yvonne Atakora – Obuobisa to kick-start the prosecution. Addressing journalists afterwards, she indicated that the commission had to resort to the legal process after all attempts to get the affected businesses to register had proven futile.

She said the businesses will be informed of their new line of action and will have up to two weeks to file their responses. “These affected companies are registered with the GRA and are paying taxes; but they are have not honoured their obligation to be register and be licensed by the Data Protection. Commission. Section 56 of our Act says any data handling business that fails to register with the Commission is liable to prosecution and up to two years in prison,” she said. The Data Protection Commission (DPC) is a statutory body established under the Data Protection Act, 2012 (Act 843) to protect the privacy of the individual and personal data by regulating the processing of personal data, choices of technologies and integrity of people with access to personal data. The commission provides for the process to obtain, hold, use, or disclosure of personal information and for other related issues bothering on the protection of personal data

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Ghana receives €44.7m to support irrigation in northern regions

Ghana has received a €44.7 million grant, as part of the Agriculture Water Management Project, to build and rehabilitate a total of 35 irrigation schemes in north-western Ghana. The project is being funded by the Agence Française de Developpment (AFD) and the European Union (EU) The project, to be implemented by the Ministry of Food and Agriculture (MoFA) and the Ghana Irrigation Development Authority (GIDA), aimed at stimulating green and inclusive growth, reducing inequalities, and

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Data compliance key to digital agenda

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s the tide of digitalisation swims across all spheres of the economy, the need for proper data management become even more necessary. Data is relevant for business planning and commercial purposes for which reason we see most public and private organisation collating them on the regular, raising concerns about how they are managed or controlled. It is for this reason that we commend the Data Protection Commission on its new course against some organisations who have failed to get the right certification that will bind them to conform to the laid down rules regarding the use and handling of people’s private information. The DPC is taking legal action against data firms without their certification part of efforts to get organisations to prioritise data protection and to respect the privacy of peoples’ data in accordance with the requirements and prescriptions of the state data protection supervisory body. Commission further is further urging data handling

organisations to register with the Commission, train an employee to become a Certified Data Protection Supervisor (CDPS) and implement an in-house privacy programme. The Data Protection Commission (DPC) is a statutory body established under the Data Protection Act, 2012 (Act 843) to protect the privacy of the individual and personal data by regulating the processing of personal data, choices of technologies and integrity of people with access to personal data. The Commission provides for the process to obtain, hold, use, or disclose personal information and for other related issues bordering on the protection of personal data.

Ghana receives €44.7m to support irrigation in northern regions Continued from page 1 improving Ghana's food security. The agreement was signed by Mr Ken Ofori-Atta, the Minister of Finance signed on behalf of the Government, while Mr Christophe Cottet, Country Director for AFD and co-signed by Ms Jutta Urpilainen, the European Commissioner for International Partnerships. Madam Anne-Sophie Ave' the French Ambassador to Ghana, Dr. Owusu Afriyie Akoto, the Minister of Agriculture and Mr Irchad Razaaly, the EU Ambassador to Ghana witnessed the signing. Through Project, the signatories have agreed to join forces to support irrigation in northern Ghana, where 85 per cent of the population makes a living from agriculture. The construction of irrigation systems is essential to increase yields in the targeted regions of Upper West, Savannah, and Northeast Regions. It will provide an additional and reliable source of income for more than 6000 smallholder farmers, who currently rely on unpredictable rainfed agriculture and are increasingly exposed to extreme climatic events such as droughts and floods. The EU’s €39,7 million and French €5 million grants will be managed by AFD with the MoFA and GIDA as implementing partners. It will finance the rehabilitation and construction of 15 dams, 11 boreholes

and 9 pumping stations on the Black Volta River, and their associated 1300 hectares of irrigated perimeters. The project will accompany farmers to move from rain-fed to irrigated agriculture, support the Water Users Associations to run the irrigation scheme, and build GIDA’s capacity to supervise these schemes. AWMP forms part of the European Union partnership with the Ministry of Food and Agriculture to support agriculture in northern Ghana with EUR 132 million (EU-Ghana Agriculture Programme – EU-GAP). The programme’s main objectives are to improve the quality of life of communities who derive most of their income from agriculture and to develop agriculture as a sustainable business. Ms Jutta Urpilainen, European Commissioner for Internal Partnerships, recalled the EU commitment to support agriculture in Ghana, an essential sector for the country’s economic development. “The project we are signing today will support smallholder farmers to make their yields more predictable and increase their income. It is an ambitious and important investment, which will boost the socio-economic development of regions in northern Ghana, essential for the development and stability of the country,” she said. Madam Anne Sophie Ave', Ambassador of France to Ghana said

investing in Agriculture was investing in the future and whatever the technologies, however drastically the world may change, humans would always need food. Mr Ken Ofori-Atta, the Minister for Finance expressed gratitude to the EU and the AFD for their continuous support towards the developmental agenda of Ghana. He said as the saying goes, “Hard times will always reveal true friends,” and in 2020, when the pandemic threatened to derail not just the economic progress but also livelihoods, the EU stepped up and provided 86.5 million euro as emergency Budget Support to Ghana to mitigate the impact of the pandemic. He said as the country advanced, there would be many more challenges for us to confront but expressed confidence that the country could face them together. Dr Owusu Afriyie Akoto, the Minister of Food and Agriculture said the objectives of the project aligned to government’s effort to develop the irrigation potential that had been largely untapped in northern Ghana, through the expansion and intensification of irrigated agriculture and in line with the One Village One Dam programme. He said the project would also contribute to addressing the huge irrigation infrastructure deficit in the country.

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MONDAY, APRIL 4, 2022

Africa in stronger position to address challenges in the pharmaceutical industry Mr Wakele Mene, the SecretaryGeneral of AfCFTA Secretariat has said currently Africa is in a stronger position to address the twin challenges in the healthcare space, especially the pharmaceutical industry. He said AfCFTA was a platform for harmonizing national standards as well as pooling procurement of medicines and pharmaceutical products, and increased investment in pharmaceutical production and exports. Mr Mene speaking on the 8th Annual London School of Economics (LSE) Africa Summit said the regulatory institutions on the continent could now leverage the AfCFTA to help build the continent’s research and development capacity, harmonize regulations in drug registration, and help countries comply with best practices and international standards The Summit is on theme: “: “African Prosperity Through Peace, Health, and Development.” He said this would among others, strengthen the fight against substandard and counterfeit medicines and medical products, while fostering the building of an enabling environment for continental production of medicines

and vaccines. “Indeed, regulation will be critical to guaranteeing the protection of the 1.3 billion African market from fake, substandard, and counterfeit products and services,” he added. He said the Agreement was also an important instrument for helping African countries engage in pooled procurement of essential medicines and medical devices, as seen during the early days of the COVID-19 pandemic. Mr Mene said the Africa CDC played an important role in the continental response, ensuring we can pool resources and expertise. The pandemic has intensified the need for African countries to enhance their capacity to produce pharmaceutical products and vaccines. He said this provided an opportunity for pharma-investments and for technology supporting these investments in Africa. The Secretary-General said such investments would depend on enabling factors such as intellectual property rights protection (IPRs), regulatory approval of new drugs, financing, among others which were enabled by the AfCFTA. He said the AfCFTA phase II protocol

on IPRs would also create a strong enabling environment for IP creation, protection, administration, and enforcement which would stimulate innovation and competitiveness of the business sector. IPRs provide incentives to inventors to develop new knowledge and the right to obtain a patent for an invention, for example, encourage the investment of money and effort in research and development. He said achieving peace and security was one of the most pressing development challenges facing Africa and must be a key element in any credible policy package to strengthen private sector development and boost intra-African trade. Estimates by the Institute for Economics and Peace (IEP), show that conflict and violence cost the world almost $15 trillion in 2020, equivalent to 11.6 per cent of the world's GDP or $1,942 per person. He said lack of economic opportunities had made it easier for extremist groups to recruit young people. Mr Mene said poverty and unemployment have become both the drivers and the consequences of insecurity in Africa. Thus, the successful implementation of the

AfCFTA will promote peace by creating economic conditions that bring greater stability to fragile and conflict-affected lands. He said this implied that significant progress could be made in peace and security if the current socioeconomic situation in many parts of the continent can be reversed. This is a key area where the AfCFTA interfaces with Africa’s security challenges. The Secretary-General said indeed, the AfCFTA may not have been conceptualised as a peace and security response initiative, however, when fully implemented it would constitute a key response framework to the continent’s structural socioeconomic drivers of insecurity. He said that it was important to add that peace was not a state that once achieved, could be taken for granted, even countries that were relatively stable need conditions that help consolidate and enhance peace and stability for good governance, inclusiveness, strong institutions and the rule of law. Even though the AfCFTA is a great step forward towards economic integration, there is still a long road ahead.

Hollard CEO named woman of the decade with over 26 years of experience in finance, banking, and insurance. Gratitude

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

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 Year2021, Marketing Woman of the Year -2019, Outstanding Group CEO of the Year- 2019. 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.

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MONDAY, APRIL 4, 2022

Jet fuel prices at all-time high: Will airlines raise domestic flight ticket prices soon?

As the jet fuel prices have been rising for quite some time and currently hovering at an all-time high levels, the aviation industry is facing the heat on its finances. Reports suggest that the Indian aviation industry is expected to report a net loss of Rs 25,000-26,000 crore for the financial year 2021-22. The price of aviation turbine fuel (ATF), which constitutes over 45 per cent of an airline’s operational costs, in Delhi has increased from Rs 76.1 per litre on January 1 to Rs 112.9 per litre on April 1 and one of the contributing reasons for the surge was the Ukraine-Russia war. Fuel prices are revised twice a month, on 1st and 16th of every month. In the last revision on Friday, the price of fuel that helps aeroplanes fly was hiked by Rs 2,258.54 per kilolitre, or 2 per cent, to Rs 1,12,924.83 per kl (Rs 112.92 per litre) in the national capital, according to a price notification by state-owned fuel retailers. Rating agency ICRA expects the Indian aviation industry to report a net loss of Rs 25,000-26,000 crore in FY2022. “Elevated aviation turbine fuel (ATF) prices, which are higher by about 68 per cent on a y-o-y basis in 11 months FY2022, and continued fare caps continue to pose a major challenge for the profitability of the airlines. Thus,

the Indian aviation industry is expected to report a net loss of Rs 250-260 billion in FY2022." The price hike will further hit profit margins of the companies that are already stressed due to the shutdown of flight amid the COVID-19 pandemic. In a recent report, ICRA continues to maintain its ‘negative’ credit outlook on the Indian aviation industry, given the elevated ATF prices and overhang of the recent COVID-19 wave, among others. The rating agency has said that a major concern that continues to be a drag on the aviation sector is the ATF prices, which have seen a sharp increase of about 57 per cent on a y-o-y basis till March 2022. “It is mainly attributed to increase in crude oil prices. This, coupled with relatively low capacity utilisation of aircraft fleet, will continue to weigh on the financial performance of Indian carriers in FY2022." Fuel prices have been increased in the country as crude are at elevated prices globally due to the Russia-Ukraine war and demand returning after being hit by the pandemic. India meets its 85 per cent oil requirements through imports. “In the near term, the balance sheets of Indian carriers will remain stressed until the carriers are able to reduce their

debt burden through a combination of improvement in operating performance and / or through equity infusion," the report said. Airlines’ Demand To offset the impact of elevated jet fuel cost, IndiGo CEO Ronojoy Dutta has said the increase in its prices has adversely affected the airline and the fuel should be brought under the GST to make flying affordable. “We have been in talks with the government to bring ATF under GST as it brings the benefit of input tax credit," Dutta said in a statement. He said such measures are needed now more than ever to offset this increase in cost and make flying viable for airlines and affordable for consumers. “A rationalisation of taxes will result in high growth for the sector, creating a multiplier effect throughout the economy, promoting trade, tourism and job creation." Impact on Air Fares Due to the oil price hikes, fares on some of the domestic routes have increased by 30-40 per cent in the past one month. The fares may further rise in the wake of a recent hike in the user development fees and ATF prices. EIN news

MONDAY, APRIL 4, 2022

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Passport Office halts issuance of 48-page booklets The Ministry of Foreign Affairs and Regional Integration has announced a halt in the issuance of 48-page passport booklets. The Ministry in a press release said the halt was due to a surge in demand for the 48-page booklets and continuing supply chain challenges. The release added that the passport office will until further notice issue only 32-page booklets to applicants that have requested the 48-page booklets. "The applicants who have applied for 48-page booklets do not need to submit another application for 32page booklets. The conversion will be done at no further cost to such applicants," the release said. "In the meantime, the Ministry is

taking appropriate steps to ensure that necessary refunds are made to qualified applicants in due course. "The Ministry of Foreign Affairs and Regional Integration reassures applicants for passports of the continuing commitment of the Passport Office to expeditious service and customer satisfaction. We thank the general public for their understanding. patience and support during this exceptional period".

Bawumia acting President, Prez Akufo-Addo off to US & UK President Nana Addo Dankwa Akufo-Addo left Ghana on Thursday, March 31, 2022, for Charlotte, North Carolina, in the United States of America, and for London in the United Kingdom. At the invitation of Bishop T.D. Jakes, President Akufo-Addo will deliver the keynote address at this year's International Leadership Summit, on Friday, April 1 2022. Since 2011, the International Leadership Summit (ILS), formerly the International Pastors and Leadership Conference, has cultivated aspiring and tenured entrepreneurs, leaders, and influential change agents with invaluable leadership insights. After the event, the President will travel to London, where he will launch one of his government’s flagship tourism drive projects, dubbed “Destination Ghana”, and hold bilateral discussions with the British Prime Minister, Boris Johnson. The President was accompanied by the Minister for Foreign Affairs, Hon. Shirley Ayorkor Botchwey, MP, and by officials of the Presidency and Foreign Ministry. President Akufo-Addo will return to Ghana on Wednesday, April 6, and, in his absence, the Vice President, Alhaji Dr. Mahamudu Bawumia, shall, in accordance with Article 60(8) of the Constitution, act in his stead.

MONDAY, APRIL 4, 2022

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MONDAY, APRIL 4, 2022

Japan donates 309,600 AstraZeneca vaccines to Ghana The government of Japan has donated 309,600 doses of AstraZeneca vaccines to Ghana in support of the country's vaccination campaign against the COVID-19 pandemic. The vaccines which were manufactured in Japan were handed over to the Deputy Minister of Health, Madam Tina Gifty Naa Ayele Mensah by the Ambassador of Japan to Ghana, Mr Mochizuki Hisanobu on Friday (April 1, 2021) in Accra. The vaccines are valued at $1,243,398. In an address before handing over the vaccines, Mr Mochizuki said the donation was in fulfilment of a pledge by Japanese Prime Minister Fumio Kishida during the Tokyo Nutrition for Growth Summit on December 7, 2021, to contribute equal access to vaccines by donating approximately 10million doses of COVID-19 vaccines to Africa. He said since the COVID-19 pandemic started, Japan had in cooperation with relevant international organizations including the UNICEF, provided support to Ghana in many areas including revamping the cold chain system to ensure an effective and efficient response in deploying COVID-19 vaccines, provision of six thermography systems which have been installed at various airports in

the country to manage the COVID-19 pandemic. He added that through the Economic and Social Development Programme, Japan had also implemented several health-related projects including partnering with international organizations on several projects to ensure the strengthening of community health systems during and post-COVID-19 pandemic. "The COVID-19 has shed light on not only immediate health risks but also other challenges including malnutrition, food shortage and other conventional health challenges in African societies. TICAD 8 to be held on 27 and 28 August this year, would be a wonderful opportunity for strengthening Japan-Africa cooperation to overcome health challenges exposed during the COVID-19 pandemic and to realize human security in Africa," he said. "To conclude, I would like to again commend GAVI, COVAX, UNICEF, the Ministry of Health, NTCC for their efforts in the successful arrival of the vaccines. I am convinced that bringing the virus under control will require coordination and strong partnership. In this regard, Japan will continue to coordinate and cooperate with the Government of Ghana and relevant international organizations to reduce the impact of the pandemic

on the people of Ghana". Receiving the items, Madam Mensah said the government of Ghana was extremely grateful to the support Japan had provided Ghana and the African continent during the pandemic. "We particularly are also grateful for the donation of six thermography systems which have been installed at various airports in the country as

well as here at the EPI to manage the COVID-19 pandemic. COVID-19," the Deputy Minister said. "We also want to mention Japan's support for our Universal Health Coverage through CHPS expansion in the 5 northern regions and MaternalChild Health Record Book project as well as Supporting Noguchi Memorial Institute for Medical Research".

Goldfields pays GH¢86.7 million dividend to govt

Goldfields Ghana Limited has paid an interim dividend of GH¢86.7 million on its Tarkwa Mines to the government for the 2022 financial year.

The dividend was paid in respect of the government's 10 per cent stake in the mining company. The acting Executive Vice-President and Head of Goldfields West Africa,

Joshua Mortoti, presented the cheque for the amount to the Minister of Lands and Natural Resources, Samuel Abu Jinapor, in Accra. Mr Mortoti said apart from fulfilling its financial obligations to the government, the company, through its Goldfields Ghana Foundation, had also invested US$84.4 million in development programmes and projects in host communities in the Western Region since 2004. He mentioned the 33-kilometre Tarkwa-Damang road, which was funded at a cost of US$27 million and completed in 2019, as a major project funded by the foundation. It had also expended over US$16.2 million on the refurbishment of the T and A Park in Tarkwa, turning it into a 10,400-seater stadium which is expected to be completed by the end of the year. "We do these things to ensure that the 19 host communities of our Tarkwa and the Damang mines benefit from the value we create through the foundation," Mr Mortoti added. He called for more collaboration with the government to ensure that

the company remained in sustainable business for the benefit of all stakeholders. Mr Jinapor commended the company for being consistent in the payment of dividend to the government. "Goldfields Ghana was one of the companies which stepped forward to pay dividend even before I was sworn in as minister, and I recall that vividly. I commend you for consistently fulfilling your financial obligations to the government, " he said. The minister urged other mining companies to endeavour to pay their dividends to strengthen the bond between the state and the companies. He said as the regulator of the mining industry, the government would continue to create a conducive environment for the sector to thrive. "Let me reiterate the fact that the government, being the regulator and custodian of public interest, has a responsibility and duty to create that conducive environment for businesses to thrive and be able to declare and pay dividends to the government," Mr Jinapor said.

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MONDAY, APRIL 4, 2022

AfDB boss wraps up three-day visit to the UAE

African Development Bank Group President Dr Akinwumi A. Adesina wrapped up an official visit to the United Arab Emirates on Friday. The three-day visit covered engagements in Dubai and Abu Dhabi. The visit—which took place alongside the World Government Summit and the closing days of Expo 2020 Dubai— explored potential partnerships for strategic investment in Africa between the African Development Bank Group and the UAE, in renewable energy, agriculture and food production. His Highness Sheikh Maktoum Bin Mohammed Al Maktoum, Dubai’s Deputy Ruler, Deputy Prime Minister and Minister of Finance of the United Arab Emirates, and the African Development Bank chief, discussed strategic opportunities that would strengthen economic ties between the UAE, the Bank, and Africa. Lauding the UAE’s exceptionally visionary leadership, Adesina said: “There is a lot that Africa can draw from the UAE’s remarkable success. What the UAE has done, using its resources, its drive and determination to develop the country into what it is today is highly impressive. We are keen to see the UAE become an even more valued and significant investment partner in Africa. The UAE has been a highly valued participant

in the African Development Fund, our Bank Group’s concessionary lending arm supporting low-income countries since 1978. Hopefully, we may at some point be able to welcome the UAE as a member of the African Development Bank.” Adesina also held a raft of bilateral meetings with other senior members of government and heads of UAE parastatal companies. They included discussions with the Minister of State for International Cooperation, Her Excellency Reem Al Hashimy—who is also Managing Director of Expo 2020 Dubai—and the Minister of State for African Affairs, His Excellency Sheikh Shakhbout bin Nahyan bin Mubarak Al Nahyan. Receiving the African Development Bank head, the Minister of State in charge of African Affairs, His Excellency Sheikh Shakhbout, spoke about the UAE’s desire to help African countries diversify their economies, provide value-added support for small and medium-sized enterprises, explore potential social housing investment opportunities, and connect young African fintech companies to innovations that would allow them to grow and thrive on the continent. The African Development Bank President and the Director General of

the Abu Dhabi Fund for Development, His Excellency Mohammed Saif Al Suwaidi, also signed a memorandum of understanding for closer collaboration, on behalf of their respective institutions. Suwaidi said: “We consider the African Development Bank to be the continent’s Think Tank. We believe that Africa is the world’s next growth frontier and we don’t want to miss that.”Adesina and His Excellency Sultan Bin Sulayem, CEO of Dubai Ports World, the world’s largest port operator, with 78 marine and inland terminals in more than 60 countries, held substantive discussions. The Bank has actively financed port infrastructure projects in Africa. Adesina and Sulayem, discussed investment cooperation that would link African ports to renewable energy and industrial hubs including food production and agro-processing. Equally productive discussions were held with Dr Mohamed Jameel Al Ramahi, CEO of Masdar, an innovative Abu Dhabi renewable energy company; with His Excellency Ahmed Saeed Al Calily, CEO and Chief Strategy and Risk Officer of Mubadala, a sovereign investor managing diverse portfolio of UAE and global assets; with senior officials of TAQA, a leading UAE energy

company; and with the Abu Dhabi Investment Authority (ADIA). Prominent in discussions were investment synergies between the UAE’s Etihad 7 energy initiative and the African Development Bank’s Desert to Power initiative, with a combined potential to provide 350 million people with renewable energy As a keynote speaker at Dubai’s Annual Investment Forum and during meetings with key government, business and investment leaders, Adesina highlighted the continent’s largely untapped potential in several sectors, the bank’s unparalleled knowledge of Africa’s development and investment landscape, and the institutions risk management instruments. The African Development Bank head extended invitations to attend the next edition of the Africa Investment Forum—Africa’s premier investment platform—in November 2022, to key leaders and institutions. The Africa Investment Forum, founded by the Bank and seven other partner institutions, has attracted over US$100 billion in investment interests into Africa since its inception in 2018. The African Development Bank Group is Africa’s leading infrastructure investor and the continent’s only Triple A rated financial institution.

MONDAY, APRIL 4, 2022

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Can the world afford Russia-style sanctions on China?

Kenneth Rogoff

s the global economic fallout from the current Western-led sanctions against Russia becomes clearer, are we watching a preview of what a trade and financial rupture with China might look like? Perhaps, but many academic studies of globalization’s net benefits suggest that sanctions on China or a break in SinoAmerican economic ties probably would have a smaller quantitative impact than one might think, at least over the medium to long term. This is true for both the United States and China, which are large and relatively diversified economies. So, while an economic rupture with China may hurt the US and Europe less than one might assume, sanctions on China also might not prove nearly as effective as the measures against Russia have been. To get an idea of the magnitude of the effects involved, consider the current debate in Europe on restricting Russian gas imports. Judging by European policymakers’ hesitancy, one might think that cutting off energy supplies from Russia, which provides about 35% of Europe’s natural gas, would doom the continent to an epic recession. But careful academic studies, including one by UCLA economist David Baqaee and co-authors, estimate that the negative effect of such a step on the German economy, which is particularly vulnerable, would likely be well under 1% of GDP, or 2% in an extreme scenario. As with many similar thought experiments on the gains from globalization, much depends on one’s assumptions about an economy’s flexibility, about alternative sourcing (Germany can draw on reserves and US liquefied natural gas), and about how

sticky preferences are. The fact that Europe can use its gas reserves and LNG imports from the US gives it time to adjust, and in the longer run the costs of not relying on Russia for energy would be small indeed. Using a very different methodology, the European Central Bank comes to a broadly similar conclusion. True, both studies acknowledge great uncertainty, and policy matters: a Europewide mechanism to share gas resources would even the burden. But if one believes that the actual economic impact of cutting off Russian energy is so modest, then it is difficult to understand Europe’s reluctance to do so now. That said, the effects of deglobalization, like the effects of globalization, tend not to be distributed equally. Europe’s caution may well have much to do with pressure from lobby groups representing regions and industries that will be most affected by an embargo on Russian energy. China, of course, is not Russia. Its economy is ten times larger; over the past three decades, it has moved to the center of global trade and finance. As a critical supplier of intermediate inputs in manufacturing as well as the final link in the Asian supply chain, China has literally become the workshop to the world. As an importer, it is now even more significant than the US in sectors ranging from basic commodities to European luxury goods. China has over $3 trillion in foreign-exchange reserves, and is a major holder of US government debt. Its savings and portfolio preferences have long been a major contributor to today’s very low interest-rate environment. So, wouldn’t world output fall massively if geopolitical tensions suddenly forced China into economic isolation, perhaps together with a group of other autocracies including Russia and Iran? Interestingly, canonical trade and finance models do not predict such catastrophic outcomes, at least not in the medium to long term. For example, one recent study found that decoupling global value chains, which would

be hugely affected by a reduction in trade with China, would cost the US only 2% of GDP. For China, the cost might be higher, but still only a few percentage points of GDP. While the literature on financial globalization also is extensive, the bottom line is the same: Openness to international lending and investment generally benefits a country, but the gains are quantitatively smaller than one might expect, especially where regulation is weak. One can conclude the impact of a US-China economic split would be bigger by assuming that deglobalization would lead to a dramatic reduction in the variety of goods available to consumers, higher markups by local monopoly suppliers, and less “creative destruction” in the economy. Still, it is not easy to show that the effects of trade sanctions would be as crippling for either the US or China as they have been for Russia’s much smaller and less diversified economy. More subtly, but perhaps as important, global financial pressures can sometimes force even autocratic governments to adopt better policies and institutions, with central bank independence being a leading example. In 2014, after Russia’s illegal annexation of Crimea, fear of a global bond-market reaction to the resulting sanctions apparently discouraged President Vladimir Putin from firing the central bank head, Elvira Nabiullina, when she raised interest rates to painful levels to fight inflation. In the event, she was widely credited with having prevented financial crisis and default. The Russian central bank’s status today is such that Putin is rumored to have refused Nabiullina’s resignation in the wake of the Ukraine invasion. My best guess, while acknowledging the difficulty of proving the point, is that an overshoot in deglobalization could easily be disastrous, particularly in undermining innovation and dynamism. But many academic studies estimate a smaller-than-expected quantitative impact from a US-China economic rupture. That is the theory, at least. It would be much better not to test it.

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MONDAY, APRIL 4, 2022

“Youth in Agribusiness Festival” to court youth to agric sector The John Agyekum Kuffuor ( JAK) Foundation has launched the maiden edition of its Youth in Agribusiness Festival as part of efforts to court youthful interest and expertise to the dominant agriculture sector to drive the rapid development and growth of the nation. The festival has been designed to showcase the outstanding development of young people within the agribusiness sector, offering them the platform to share their experiences and success stories as a way of enticing the nation’s youth to the dominant agriculture space. Under the theme “Youth in Agribusiness in Ghana: the story so far and the way forward”, it will serve as a platform for nurturing and roping in the next crop of transformational agribusiness entrepreneurs in the country. “Through this festival, we seek to motivate the youth to accept agriculture and its related activities as a commercial business venture, create the right linkages among young agribusiness entrepreneurs, industry leaders and investors and to encourage investments to the agriculture sector,” said convener of

the festival, Jeffrey Agyemang-Duah, at its launch in Accra. He added: “By getting more young people into agribusiness through this festival, we believe that it will contribute to the reduction in youth unemployment and also, young people will have role models and mentors to look up to in the sector.” Activities to mark the festival include exhibition of agribusiness

products and services, forums on finance and investment streams for young agribusiness practitioners, with plenary sessions and trainings on alternative and innovative agribusiness enterprises that could be explored by the youth. Chief Executive Officer of the National Youth Authority, Pius Enam Hadzide, in a speech read on his behalf, said it was incumbent of the private sector

and civil society to complement government’s interventions in the agriculture sector. Whilst pledging support for the initiative, he indicated that it was crucial for the country’s youth to be reoriented to appreciate the enormous economic potentials that the sector offers to enable them to seek viable job prospects along the agricultural value chain. “The next phase of our country’s development is industrialization, through which we can absorb the teeming youthful population into the labour force. For this reason, we will have to emphasise on those sectors that we have the comparative advantage. Extant research has shown agribusiness as one of the core sectors through which we can drive economic growth and offer significant employment opportunities,” he said. At the end of the festival, the organisers will establish the Youth in Agribusiness Information Hub, which will be a one-stop-shop for reliable and timely information needed for the development and sustainability of agribusiness in the country.

GEPA promotes Ghanaian Sugarloaf pineapple at Fruit Logistica 2022 The Ghana Export Promotion Authority (GEPA) and West Africa Competitiveness Programme (WACOMP) Ghana are supporting the promotion of Ghanaian exotic fruits under the theme “Discover the superior taste of Ghana’s green gold”. Part of it is the participation of seven GlobalGAP certified members of the Sea-freight Pineapple Exporters of Ghana (SPEG) at Fruit Logistica 2022 from April 5 to April 7 in Berlin, Germany. Among other products, the focus lies on highlighting the Ghanaian Sugarloaf, a sweeter pineapple variety than the more common MD2. 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. Europe is the main destination of 90percent of Ghanaian pineapples and among the top five European markets are Belgium, France, the UK,

Switzerland, and Germany. Ghana’s proximity to the European market means the environmental footprint from distribution is relatively small compared to shipments from Asia and Latin America. Meet the pineapple producers and exporters of other fruits like mangoes at the Ghana pavilion in hall 26 stand E24. The Ghana Export Promotion Authority (GEPA) is the national focal point agency under the Ministry of Trade and Industry with the mandate to develop and promote nontraditional exports in Ghana. The goal of GEPA is to ensure that Ghana’s non-traditional export trade contributes to accelerated economic growth through strategic marketing of Made-in-Ghana products in the competitive global economy. GEPA provide relevant trade information to buyers interested in sourcing quality products from the country. To this end, GEPA assists buyers to make well-informed decisions on doing business in Ghana.

The Sea-freight Pineapple Exporters of Ghana (SPEG) is specialized in the export of high-quality pineapples. Its mission is to bring together operations in the pineapple and the larger fruit industry and promote good agricultural practices and provide effective and economic logistics services.

The West Africa Competitiveness Programme (WACOMP) is funded by the European Union 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.

| F E AT U R E

MONDAY, APRIL 4, 2022

Distracted Driving

hen I wrote about deadly drama on our roads, I knew there would be the need for a follow-up. And, given the spate of vehicular accidents these days, the follow-up has become more needful. It is all about common distractions that cause drivers to lose focus while driving, resulting in fatal accidents. • Writing is best done elsewhere, not while we are driving. I get a lot of ideas for articles when I am driving, but to take a pen and start jotting down the ideas while the car is moving can be a deadly distraction. It is far better to park off the road, jot down your ideas, and then move on. Or else, keep on driving; better to lose the ideas than to lose precious lives. • By far, the leading distraction for night drivers is when they doze off. That is why transport companies pair up drivers for long-distance journeys; when one is tired, the other can take over. Drivers who notice they are tired, park at a safe place, and sleep for a while are wise. Refreshed, they resume driving later, strong and in firm control. Whenever we do this, we get so rested and relaxed that driving shifts from being laborious to being enjoyable. • Men are pathetic when it comes to being distracted by women passing by.

Why do we strain to look when we gain nothing from it? While we stare, we fall into gutters, bump into electric poles, and get hit by vehicles. Turning to look is every male driver’s most dangerous source of distraction that easily causes accidents, and we will do well to avoid looking! • I saw an appropriate notice in a bus— “Do not talk to the driver”—written on a transparent glass behind the driver’s seat. Talking to the driver distracts him from concentrating. People argue that talking to the driver keeps him from dozing off. The argument sounds convincing, but the reality is that a tired driver will doze of whether you talk to him or not. And talking to him certainly distracts him. • Operating the radio in the vehicle—or changing CDs—is another source of driver distraction. We do this all the time, but it is highly dangerous. If we must operate our radio or music device while driving, utmost care must be exercised. Do this less frequently, hold the steering wheel firmly, and keep your eyes on the road. • About the beautiful scenery we see while driving, I confess my weakness. I enjoy watching the lush greens, the trees, birds, and well-cultivated farms along the road. But it is a great source of distraction.

To help deal with this problem, I don’t look at my immediate surroundings. While looking ahead through the windscreen, I observe what I can see without taking my eyes off the road. Even then, absolute care is required. • A lady leaves the house hurriedly. She’s late for work, yes, but of all the moments she would apply makeup and groom her hair shouldn’t be while driving; yet she does it, using the interior driving mirror. Wouldn’t it be safer for her to wait until she arrives at her destination before completing her make-up? Then it would be the living who would admire her beauty! • Life is full of problems that cause us to think and worry. A driver driving absentmindedly groaned, “Why shouldn’t I worry when my wife wants divorce?” But, whatever our problems, we would do well to curtail deep thinking (or worrying) while driving, for it distracts dangerously. When we arrive safely, we can have plenty of time to think—or worry. Or better still, “Cast all your anxieties on the Lord, for he cares for you!” (1 Peter 5:7), for Nahum 1:7 says, “God is good!” Driving can be fun or deadly; and being alert and focused rather than absentminded and distracted play a major role— the good Lord being our helper.

| F E AT U R E

MONDAY, APRIL 4, 2022

Cadbury faces fresh accusations of child labour on cocoa farms in Ghana

new TV documentary alleges that children as young as 10 are using machetes to harvest pods The food giant that owns the Cadbury brand is embroiled in fresh allegations of employing child labour after an investigation obtained footage of children working with machetes on cocoa farms in its supply chain. Children as young as 10 have allegedly been found working in Ghana to harvest cocoa pods to supply Mondelēz International, which owns Cadbury. Campaigners say the farmers are being paid less than £2 a day and can’t afford to hire adult workers. The Channel 4 Dispatches investigation, broadcaston Monday, comes more than two decades after the chocolate industry pledged to eliminate child labour. Ayn Riggs, founder of Slave Free Chocolate, which campaigns against child labour in cocoa farms, said: “It’s horrifying to see these children using these long machetes, which are sometimes half their height. Chocolate companies promised to clean this up over 20 years ago. They knew they were profiting from child labour and have shirked their promises.” The Cadbury revelations come as this weekend millions of pounds will be spent on chocolate treats for Easter. More than £300m is spent on Easter eggs and novelties each year, including more than 80m boxed eggs. The chocolate market is worth £5.6bn in the UK, according to the market research firm Mintel. It includes about 330m Cadbury Creme eggs which are eaten every year. Mondelēz, which made global profits last year of more than £3.3bn, has a sustainability programme, Cocoa Life. Its logo is marked on its products, including Cadbury Dairy Milk, and its website states: “No amount of child labour in the cocoa supply chain should be acceptable.” Under the Cocoa Life programme, Mondelēz had, by the end of 2020, mapped about 167,800 cocoa farms that supply its businesses in Ghana, Côte d’Ivoire, Indonesia, the Dominican Republic

and Brazil. On one of the farms alleged to be supplying Mondelēz, two children with machetes were filmed by the documentary team weeding the plantations. Children were also filmed using sharp knives to open cocoa pods and swinging long sticks with blades tied to them to harvest the pods from the cocoa trees. None of the children were wearing protective clothing. The daughter of one farmer, claimed to be supplying Mondelēz, said she had sliced her foot open while using a long machete. On one of the smallholdings, a niece of the farmer said she thought she was going to her uncle’s farm to help with childcare but claims she was being forced to work long hours on the farm and not allowed to go to school. When asked why she did not speak out, she said she was “afraid”. Under Ghanaian law, it is illegal for children under 13 to work on cocoa farms. There is also a ban on anyone under 18 being involved in hazardous labour. Ghana is the world’s second biggest cocoa producer after Côte d’Ivoire, and the crop, along with gold, is one of its most valuable exports. A cocoa farmer will typically receive 7p from a milk chocolate bar costing £1 in the UK, and 11p from a dark chocolate bar. It means many live in extreme poverty while facing rising costs from the impacts of climate change, because of unpredictable weather patterns and changes in crop-threatening pests and diseases. Ninety percent of the world’s cocoa beans are harvested on small, family farms with less than two hectares of land. In 2001, a cocoa industry agreement agreed to eliminate child labour. It was backed by the World Cocoa Foundation, a trade group whose members include the world’s biggest cocoa and chocolate companies, Nestlé, Mars Wrigley and Mondelēz. But the protocol’s targets were postponed and adjusted in 2005 and 2008. A revised target in 2010, to reduce the worst forms of child labour in the cocoa sector in west Africa by 70% by

2020, has been missed. Campaigners say child labour is still endemic in the chocolate industry. A study by the social research group NORC at the University of Chicago in 2020 found 1.56 million children were involved in the cocoa industry in Ghana and Cote d’Ivoire. The report found prevalence rate of child labor in cocoa production among agricultural households in cocoa growing areas of Côte d’Ivoire and Ghana increased between 2008/09 and 2018/19. There was a 62 percent increase in cocoa production in the two countries during this period. Joanna Ewart-James, executive director of Freedom United, an international organisation campaigning against child labour in the cocoa supply chain, said: “Child slavery and child labour have plagued the industry in Côte d’Ivoire and Ghana – which produce 60% of the world’s cocoa – for decades. Cocoa farmers are not earning an income that enables them to recruit the labour they need.” On Friday, Freedom United will publish a scorecard rating global chocolate firm on their labour and environmental practices. The campaign group says Mondelēz has invested in community initiatives to combat child labour but, along with other leading companies, needs to pay farmers more money for its cocoa. Slave Free Chocolate compiles a list of chocolate companies that use ethically grown chocolate. Martin Short, president of the World Cocoa Foundation, said: “Dealing with child labour abuses as a standalone issue will never work until we deal with the root cause of child labour, which is farmer poverty.” Cadbury, one of Britain’s most famous companies, was controversially taken over by the US food firm Kraft Foods in January 2010. The American food giant changed its name to Mondelēz International in October 2012. Mondelēz considers a wide range of measures are required to combat child labour. The company has been involved in research which shows that increasing the price of cocoa will not on its own lift many farmers out of poverty, because they are farming on small amounts of land. A Mondelēz International spokesperson said: “We’re deeply concerned by the incidents documented in the Dispatches programme. We explicitly prohibit child labour in our operations and have been working relentlessly to take a stand against this, making significant efforts through our Cocoa Life programme to improve the protection of children in the communities where we source cocoa, including in Ghana. “The welfare of the children and families featured is our primary concern and we commit to investigating further so we can provide any support needed. As part of our Cocoa Life programme, we have child labour monitoring and remediation systems in place in Ghana, which means community members and NGO partners are trained to provide assistance to vulnerable children, and once identified, we can help to address any cases of child labour.” The company said it had requested additional information from the Dispatches team so it could investigate. -The Guardian

| AUTOMOBILE

MONDAY, APRIL 4, 2022

Russia war could further escalate auto prices and shortages

BY TOM KRISHER AND KELVIN CHAN

MW has halted production at two German factories. Mercedes is slowing work at its assembly plants. Volkswagen, warning of production stoppages, is looking for alternative sources for parts. For more than a year, the global auto industry has struggled with a disastrous shortage of computer chips and other vital parts that has shrunk production, slowed deliveries and sent prices for new and used cars soaring beyond reach for millions of consumers. Now, a new factor — Russia’s war against Ukraine — has thrown up yet another obstacle. Critically important electrical wiring, made in Ukraine, is suddenly out of reach. With buyer demand high, materials scarce and the war causing new disruptions, vehicle prices are expected to head even higher well into next year. The war’s damage to the auto industry has emerged first in Europe. But U.S. production will likely suffer eventually, too, if Russian exports of metals — from palladium for catalytic converters to nickel for electric vehicle batteries — are cut off. “You only need to miss one part not to be able to make a car,” said Mark Wakefield, co-leader of consulting firm Alix Partners’ global automotive unit. “Any bump in the road becomes either a disruption of production or a vastly unplanned-for cost increase.” Supply problems have bedeviled automakers since the pandemic

erupted two years ago, at times shuttering factories and causing vehicle shortages. The robust recovery that followed the recession caused demand for autos to vastly outstrip supply — a mismatch that sent prices for new and used vehicles skyrocketing well beyond overall high inflation. In the United States, the average price of a new vehicle is up 13% in the past year, to $45,596, according to Edmunds.com. Average used prices have surged far more: They’re up 29% to $29,646 as of February. Before the war, S&P Global had predicted that global automakers would build 84 million vehicles this year and 91 million next year. (By comparison, they built 94 million in 2018.) Now it’s forecasting fewer than 82 million in 2022 and 88 million next year. Mark Fulthorpe, an executive director for S&P, is among analysts who think the availability of new vehicles in North America and Europe will remain severely tight — and prices high — well into 2023. Compounding the problem, buyers who are priced out of the new-vehicle market will intensify demand for used autos and keep those prices elevated, too — prohibitively so for many households. Eventually, high inflation across the economy — for food, gasoline, rent and other necessities — will likely leave a vast number of ordinary buyers unable to afford a new or used vehicle. Demand would then wane.

And so, eventually, would prices. “Until inflationary pressures start to really erode consumer and business capabilities,” Fulthorpe said, “it’s probably going to mean that those who have the inclination to buy a new vehicle, they’ll be prepared to pay top dollar.” One factor behind the dimming outlook for production is the shuttering of auto plants in Russia. Last week, French automaker Renault, one of the last automakers that have continued to build in Russia, said it would suspend production in Moscow. The transformation of Ukraine into an embattled war zone has hurt, too. Wells Fargo estimates that 10% to 15% of crucial wiring harnesses that supply vehicle production in the vast European Union were made in Ukraine. In the past decade, automakers and parts companies invested in Ukrainian factories to limit costs and gain proximity to European plants. The wiring shortage has slowed factories in Germany, Poland, the Czech Republic and elsewhere, leading S&P to slash its forecast for worldwide auto production by 2.6 million vehicles for both this year and next. The shortages could reduce exports of German vehicles to the United States and elsewhere. Wiring harnesses are bundles of wires and connectors that are unique to each model; they can't be easily re-sourced to another parts maker. Despite the war, harness makers like Aptiv and Leoni have managed to reopen factories sporadically in Western Ukraine. Still Joseph Massaro, Aptiv’s chief financial officer, acknowledged that Ukraine “is not open for any type of normal commercial activity.” Aptiv, based in Dublin, is trying to shift production to Poland, Romania, Serbia and possibly Morocco. But the process will take up to six weeks, leaving some automakers short of parts during that time. “Long term,” Massaro told analysts, “we’ll have to assess if and when it makes sense to go back to Ukraine.” BMW is trying to coordinate with its Ukrainian suppliers and is casting a wider net for parts. So are Mercedes and Volkswagen. Yet finding alternative supplies may be next to impossible. Most parts plants are operating close to capacity, so new work space would have to be built. Companies would need months to hire more people and add work shifts. "The training process to bring up to speed a new workforce — it’s not an overnight thing,” Fulthorpe said.

Fulthorpe said he foresees a further tightening supply of materials from both Ukraine and Russia. Ukraine is the world’s largest exporter of neon, a gas used in lasers that etch circuits onto computer chips. Most chip makers have a six-month supply; late in the year, they could run short. That would worsen the chip shortage, which before the war had been delaying production even more than automakers expected. Likewise, Russia is a key supplier of such raw materials as platinum and palladium, used in pollutionreducing catalytic converters. Russia also produces 10% of the world’s nickel, an essential ingredient in EV batteries. Mineral supplies from Russia haven’t been shut off yet. Recycling might help ease the shortage. Other countries may increase production. And some manufacturers have stockpiled the metals. But Russia also is a big aluminum producer, and a source of pig iron, used to make steel. Nearly 70% of U.S. pig iron imports come from Russia and Ukraine, Alix Partners says, so steelmakers will need to switch to production from Brazil or use alternative materials. In the meantime, steel prices have rocketed up from $900 a ton a few weeks ago to $1,500 now. So far, negotiations toward a ceasefire in Ukraine have gone nowhere, and the fighting has raged on. A new virus surge in China could cut into parts supplies, too. Industry analysts say they have no clear idea when parts, raw materials and auto production will flow normally. Even if a deal is negotiated to suspend fighting, sanctions against Russian exports would remain intact until after a final agreement had been reached. Even then, supplies wouldn’t start flowing normally. Fulthorpe said there would be “further hangovers because of disruption that will take place in the widespread supply chains.” Wakefield noted, too, that because of intense pent-up demand for vehicles across the world, even if automakers restore full production, the process of building enough vehicles will be a protracted one. When might the world produce an ample enough supply of cars and trucks to meet demand and keep prices down? Wakefield doesn’t profess to know. “We’re in a raising-price environment, a (production)constrained environment,” he said. “That’s a weird thing for the auto industry.”

| M A N U FAC T U R I N G

MONDAY, APRIL 4, 2022

China Covid-19 Outbreak Disrupting Supply Chains, Manufacturing, Investment, Staffing — AmCham Survey Covid-19 outbreaks in China are having an impact on supply chains, manufacturing, revenue, investment and staffing among members of the American Chamber of Commerce in Shanghai and American Chamber of Commerce in China, a joint survey by the two released on Friday found. Overall, 99% of respondents said they had been impacted by the recent outbreaks, according to the survey conducted March 29-30. The survey was answered by 167 member companies, of which 120 have operations in Shanghai. Shanghai – one of Asia’s most important business hubs – and Jilin Province have been hit by outbreaks. The Chinese mainland reported 2,086 new locally-transmitted Covid-19 infections on Friday, compared with 1,787 a day earlier, the National Health Commission said Saturday. Of the local cases reported Friday, 1,730 were in Jilin, 260 in Shanghai, and 21 in Heilongjiang, Xinhua news agency said. Here are excerpts from the summary of the survey findings provided by the two AmChams: • Production: 60% of respondents reported slowed or reduced production because of a lack of employees, inability to obtain supplies, or governmentordered lockdowns. Among manufacturers, 82% reported slowed or reduced production. • Supply chains: 57% of respondents reported that the recent Covid-19 outbreak had

•

disrupted their supply chains due to disruptions in transportation and shipping networks. Among manufacturers, 86% said their supply chains had been disrupted. Revenues: 54% of respondents have decreased 2022 revenue projections following the recent Covid-19 outbreak, while an additional 38% say that it’s too early to estimate the impact on revenues. Investment: 29% of respondents

•

have delayed investments because of the recent Covid-19 outbreak, while an additional 17% have decreased investments. Another 30% say it’s too early to tell how their investments will be impacted. However, 49% of companies will reduce investment if China’s current Covid-19 restrictions remain in place into the next year. Foreign staff: 81% of companies reported that China’s management of Covid-19 had

•

impacted their ability to attract or retain skilled foreign staff, with 35% describing the impact as either large or severe. China’s Covid-19 management: 51% of respondents are satisfied with China’s efforts at controlling the spread of Covid-19. However, 77% of respondents are not satisfied with the length of quarantines, and 69% are not satisfied with restrictions on travel to China.

Manufacturing firms sign up for 100% RE power contracts Manufacturing facilities in the country have been the “first movers” in signing up power supply agreements (PSAs) for 100 percent renewable energy (RE) for their electricity requirements. Initially, 17 contracts have already been registered by the Independent Electricity Market Operator of the Philippines (IEMOP), which is acting as the central registration body on customer-switching for the Green Energy Option Program (GEOP) of the Renewable Energy Act. According to Katrina Garcia-Amuyot, IEMOP manager for registration and stakeholder services, the trendsetter-companies in cornering GEOP-anchored RE power supply deals had been the retail electricity supplier (RES) business arms of First Gen Corporation, Aboitiz Power Corporation and ACEN Corporation of the Ayala group.

| NEWS

MONDAY, APRIL 4, 2022

NFTs are the next frontier for the African digital and arts economy

Non-Fungible Tokens (NFTs) are being talked about a lot more these days and Binance, a leading cryptocurrency exchange has taken the opportunity to provide some answers to questions on NFTs. Q: Kindly give a detailed explanation of what NFTs are. A: NFT stands for non-fungible token and is a secure digital file that validates ownership, and is stored on the blockchain, where each NFT can represent a unique digital item, and thus is not interchangeable. No two NFTs are the same. NFTs can represent digital files such as art, audio, videos, certificates, items in video games and other forms of assets in the physical world. While the item itself can be copied, the NFT that includes certification of ownership cannot be duplicated. NFTs allow creators to earn by tokenising their work. Q: The focus appears to be art.

What are some other areas and applications where NFTs can be applied? A: In general, NFTs help verify authenticity and prevent piracy and so, beyond art, this is valuable in multiple industries. It can be used to provide proof of ownership in real estate (title deeds), in-game assets in GameFi, ticketing at events, storage of medical records, ensuring product authenticity amongst others. While lots of use cases are still in their infancy, there are numerous everyday applications for NFTs. Q: There are concerns that NFTs and other elements of decentralized finance (DeFi) are driven entirely by speculation and not value. What is your response to this? A: At its core, DeFi enables open, free, and fair financial markets that are accessible to anyone with an internet connection. By this alone,

the value is immense. Users typically engage through decentralized apps and tokens, most of which run on Ethereum, BNB Chain and so on. There’s however no doubt that some - for example tokens are driven by speculation. This is why at Binance, we always encourage everyone to do their due diligence and ensure they research as much as they can. It's important to also think about what people value today and why they pay for gaming items e.g pokemon cards or for blue checkmarks on Twitter, same reason why people care about how many followers they have on Instagram, digital items have value to them whether it's for social status or a thing of special interest, the same trend applies to NFTs. Q: Regulators are skeptical of DeFi and recent events give credence to their concerns. What can be done

on the part of DeFi players to better engage regulators? A: Decentralized entities are run by distributed communities, with no central authority. As such, for regulators to engage, they will typically interface with the on-ramps which could be fiat-tocrypto exchanges to ensure they incorporate due diligence and know-your-client initiatives. As a company, we believe regulatory collaboration with key stakeholders in the blockchain ecosystem is essential. We at Binance are actively keeping abreast of ever-changing policies in the crypto industry and continue to take a collaborative approach in working with regulators, ensuring a fair playing field - as consumer protection is important to all of us.

| NEWS

MONDAY, APRIL 4, 2022

Old Mutual Ghana pays courtesy call on South African High Commissioner to Ghana

From left to right: Mzwakhe Lubisi, Economic Counsellor for South African High Commission in Ghana; Rita Adu Boateng, Head of Marketing and Customer Experience at Old Mutual Ghana; Her Excellency Grace Jeanet Mason, South African High Commissioner to Ghana; and Mr. Tavona Biza, Chief Executive Officer at Old Mutual Ghana

ld Mutual Ghana, led by the Chief Executive Officer, Mr. Tavona Biza, has paid a courtesy call on the South African High Commissioner to Ghana, Her Excellency Grace Jeanet Mason. Mr. Biza, who was accompanied by the Head of Marketing and Customer Experience at Old Mutual Ghana, Rita Adu Boateng, said the meeting served as an opportunity to discuss ways to deepen collaborations and investment opportunities between businesses in Ghana and South Africa. "We have been operating in Ghana for over nine years, but as a business birthed in South Africa about 176 years ago, it is always important for us to meet and collaborate with the high commissioner’s office and also seek their perspective on where they are seeing growth opportunities and how we can tap into these opportunities. This meeting is, therefore, for us to work more and a bit closer together. Also, as a responsible business doing great things within the Ghanaian market, we both have the intention of adding value to Ghana, "he added. Mr. Biza touched on some major investments made by Old Mutual, such as the Onix Accra 1. He explained this investment as proof of the company’s commitment to Africa. Old Mutual, together with Onix, acquired Ghana’s Tier IV

facility as the first and only tier 4 collocation carrier-neutral data center in West Africa. It is also expected to be the largest operational data center in Ghana, providing physical space, power, cooling, connectivity, and security to customers. On her part, the South African High Commissioner, Her Excellency Grace Jeanet Mason, stressed that the purpose of the meeting was to look at further collaborations and also offer assistance to South African institutions and businesses in Ghana through investor aftercare, as well as ensure economic recovery post-COVID-19 recovery of the two economies. "This is part of the ongoing collaboration we have with our South African partners to ensure more investment comes into Ghana and also for the mutual benefit of both countries and their economies," she said. She also stressed that her High Commission supports South African investors through post-investment support to ensure that investment projects are sustainable and profitable. She commended Old Mutual for its consistent hard work in ensuring that people are always living in confidence through their numerous insurance policies. "Insurance companies are critical to any economy’s growth and development. The fact that Old Mutual Ghana

has been in existence for over a century is great proof of the many opportunities the company provides in insurance and pensions. " Her Excellency Mason, touching on the company’s acquired asset, the Onix Data Center in Accra, gave the assurance that this was part of Old Mutual’s $25 million investment in Ghana and would be officially unveiled before the end of the second quarter of 2022. The Data Center is partly powered by solar energy, which helps to reduce its carbon footprint in its immediate locality as well as contribute to the exponential growth of Africa’s digital economy. About Old Mutual Ghana Old Mutual Ghana is Ghana’s top 10 leading financial institution offering innovative insurance services. Founded in South Africa, Old Mutual has been consistent in championing mutually positive futures by offering excellent financial services to a wide range of customers across the African continent. The company established a branch in Ghana in 2013. It operates with a skilled knowledge of the Ghanaian market, backed by the expertise of an international brand. In Ghana, the company is currently made up of Old Mutual Life Assurance Company Limited and Old Mutual Pensions Trust.

MONDAY, APRIL 4, 2022

| MARKET REVIEW

MONDAY, APRIL 4, 2022

Weekly Market Review For Week March 25, 2022 MACROECONOMIC INDICATORS 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%

500

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

MTN, 96.53%

GSE CI

GGBL, 2.40%

YTD Performance of GSE Market Indices

Access Bank Ghana PLC

Gain/Loss (%)

108.6

158.6

▲46.04%

1.9

2.09

▲10.00%

0.21

▲5.00%

GOIL

SIC

CAL, 1.07%

GLD, 3.33%

SIC, 0.58%

0.50%

-1.00%

11/

1/2 2

-0.50%

/2 2 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

0.00%

MTN, 91.61%

-1.50% -2.00%

MTN

GLD

GGBL

CAL

SIC

-2.50% -3.00% -3.50%

5 Best & 5 Worst Performing Stocks YTD Return

-4.00% GSE CI

GSE FSI

200.00% 162.50% 150.00%

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

46.04%

100.00%

80,000,000 70,000,000

-33.65%

25.00% 21.43% 18.28%

50.00%

60,000,000

-33.33% -25.00% -9.77%

40,000,000

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

0.00%

50,000,000 30,000,000

-50.00%

-4.50%

20,000,000 10,000,000

CURRENCY MARKET

VOLUME

25 /0 3/ 22

24 /0 3/ 22

23 /0 3/ 22

22 /0 3/ 22

VALUE

Market Capitalization for Week Ending 25/03/2022 64,030.00

-0.69% -0.70% -0.71% -0.72% -0.73% -0.74% -0.75% -0.76% -0.77% -0.78% -0.79%

64,020.00 64,010.00 64,000.00

SIC Insurance Company Ltd.

0.2

Cal Bank PLC

0.84

0.85

▲1.19%

63,980.00

GCB Bank PLC

5.18

5.16

▼0.39%

63,970.00

21 /0

3/ 22

63,990.00

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

NewGold

Closing Price

GGBL

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

GSE FSI

Price Movers for the Week

Opening Price

CAL

1.00%

21 /0 3/ 22

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

Equity

MTN

80.1%

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%.

SIC, 0.15%

2,000

Debt to GDP Ratio – Dec, 2021

GGBL, 1.19%

2,500

GOIL, 0.23%

CAL, 1.40%

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

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

Trend in Market Indices - 2022

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.

Weekly Interbank Foreign Exchange Rates

Treasury Yield Curve

Year Open

Week Open

Week Close

Change

YTD %

01/01/22

21/03/22

25/03/22

USD/ GHS

6.0061

7.1125

7.1121

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

21.75 20.75

19.00

▼15.55

70%

18.10

18 17.11

60% 50%

14.14

14.51

40% 30% 20% 10%

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

-10%

▲0.01

YTD Performance of Selected Commodity Prices

20.20 19.75 19.75

19.75

91 Da y 18 2D ay 36 4D ay 2y r 3y r 5y r 6 yr 7y r 10 yr 15 yr 20 yr

Currency Pair

Gold

Source: Bank of Ghana

10.0000 9.0000 8.0000 7.0000 6.0000 5.0000 4.0000 3.0000 2.0000 1.0000 0.0000

YTD Performance of the Ghana Cedi against Selected Currencies 5.00

GBP

EUR

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.

CAD

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

15/01/22

08/01/22

01/01/22

0.00

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.

-10.00

-15.00

-20.00

GOVERNMENT SECURITIES MARKET USD GBP EUR CAD 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. Security

Year Open

Previous Yield %

Current WoW Chg Yield % (%)

01/01/22

14/03/22

18/03/22

91 Day TB

12.53

13.25

13.42

182 Day TB

13.21

13.55

13.61

364 Day TB

16.64

16.96

2-Yr FXR TN

19.75

3-Yr Bond 5-Yr Bond 6-Yr Bond

20.50 21.00

20.50 20.75

18.80

21.75

18.10

10-Yr Bond

19.75

15-Yr Bond

19.75

20-Yr Bond

20.20

7-Yr Bond

YTD Chg (%)

▲1.22

▲7.10

▲0.42

▲3.01

0.00

▲1.88

0.00

▼1.19

0.00

15.69

0.00

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

Week Open

Week Close

107.93

120.65

1,929.30

1,954.20

2,537.00

2,562.00

2,580.00

2,537.00

Chg %

YTD %

▲11.79

▲55.12

▲1.29

▲6.87

▲0.99

▲1.67

▼1.67

▲0.67

Brent Crude

International Commodity Prices - 2022 3,000

140

C O 2,500 C O 2,000 A & G O L D

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

ABOUT CIDAN CIDAN Investments Limited is an investment and fund management company licensed by the Securities & Exchange Commission (SEC) and the National Pensions Regulatory Authority (NPRA). RESEARCH TEAM Name: Ernest Tannor Email:etannor@cidaninvestments.com Tel:+233 (0) 20 881 8957 Name: Audrey Asiedua Wiafe Email:aaudrey@cidaninvestments.com Tel:+233 (0) 57 840 2700 Name: Moses Nana Osei-Yeboah Email:moyeboah@cidaninvestments.com Tel:+233 (0) 24 499 0069 CORPORATE INFORMATION CIDAN Investments Limited CIDAN House Plot No. 169 Block 6 Haatso, North Legon – Accra Tel: +233 (0) 26171 7001/ 26 300 3917 Fax: +233 (0)30 254 4351 Email: info@cidaninvestmens.com Website: www.cidaninvestments.com

Source: www.investing.com

120 100 80

1,500 60 1,000

500

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

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.

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

COMMODITY MARKET

USD

Cocoa

BUSINESS TERM OF THE WEEK

Exchange Rates: Ghana Cedi vs Selected Currencies

-5.00

| MARKET REVIEW

MONDAY, APRIL 4, 2022

Gold

Cocoa

Brent Crude

B R E N T C R U D E

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

MONDAY, APRIL 4, 2022

STAR Ghana Foundation ends security project

STAR Ghana Foundation has ended its project on the Conflict, Security and Stability Fund (CSSF), implemented in the northern sector of the country. The one-year project was piloted and implemented in the five regions in the north with the objective of contributing to addressing the underlying causes of conflict, insecurity and underdevelopment in Northern Ghana. Alhaji Ibrahim-Tanko Amidu, Executive Director of STAR Ghana Foundation, speaking at the reflections workshop on the CSSF project said

the aim of the project was to develop a roadmap for coordinated advocacy on peace, security, and stability in the Northern, Northeast, Savannah, Upper East and Upper West Regions. He indicated that the project implemented by STAR Ghana Foundation was being funded by the UK’s Foreign, Commonwealth and Development Office and had contributed to addressing the underlying causes of conflict, insecurity, and underdevelopment in the area. Mr Amidu said the project was

implemented in partnership with the Northern Development Authority (NDA) and the Northern Development Forum (NDF) and was able to convene a series of regional stakeholders’ dialogue meetings to offer them space to reflect on measures to put in place to fight against conflict in the area. Mrs Eunice Agbenyadzi, Programmes Manager of STAR Ghana Foundation spoke about some of the achievements of the CSSF project saying it had catalysed and coordinated a lot of efforts to address the underlying causes of conflict and insecurity in the area as part of a broad roadmap. She said the roadmap was an output of the regional and national dialogue, which had laid the foundation for more holistic and inclusive actions to identify conflict and had offered recommendations for coordinated and complementary actions by state and state actors. Mr Aaron Atimpe, Project Manager for CSSF at STAR Ghana Foundation said the project had also explored opportunities for sustaining peace and proposed strategies for addressing the drivers of conflicts and insecurities in the northern sector of the country. He added that it had adopted an integrated approach to link initiatives

at the community levels, focusing on salient local issues and piloting innovative local partnerships with strategic national level engagements to influence policy and practice in the areas of peace, security, and development. Mr Abubakar George, Project Coordinator for Fistrad Organization, and a stakeholder of CSSF project said the project had provided a standard mechanism to resolve conflicts between Fulani herders and community members. He appealed for an extension of the project to enable them to consolidate the modest gains made so far in the area. Mr Peter Asaal, Executive Director of Benum Wusa Debut Agency indicated that as part of the project implementation achievement, there were security agency and community engagements in the pilot communities to increase awareness of security issues and threats. He said it had strengthened relationships between security agencies and community members and added that border management issues were identified, and awareness was created of the functions of the security agencies.

Parliament to go on recess April 5 Parliament is expected to adjourn Sine Die on Tuesday, April 5, 2022, to end the First Meeting of the Second Session of the Eighth Parliament of the Fourth Republic. Presenting the Business Statement for the Eleventh Week ending Tuesday 5th April, the Deputy Majority Leader, Hon. Alexander Kwamena AfenyoMarkin, entreated all Honourable Members to continue to devote themselves to the scheduled business for the week under consideration to enable the House adjourn on the proposed date. Hon. Afenyo-Markin used the opportunity to commend the Rt. Hon. Speaker Alban Bagbin, the First and Second Deputy Speakers, Hon. Joseph Osei Owusu and Hon. Andrew Amoako Asiamah, respectively and all Members for their sacrifice and devotion to the business of the House during this First Meeting of the Second Session.

The House will sit on Monday and extend sitting to allow the House to finish other business and continue with the debate on the State of the Nation Address delivered by the President, Nana Akufo-Addo, on Wednesday 30th March 2022. The motion for the debate on the State of the Nation Address was moved by Hon. Samuel Atta Akyea, MP for Abuakwa South and seconded by Hon. Eric Opoku PUBLISHED BY BUSINESS24 LTD. TEL: 030 296 5297 030 296 5315. EDITOR: BENSON AFFUL editor@business24.com.gh. +233 545 516 133.