Business24 Newspaper 28th February 2022 by Business24 Online

MONDAY, FEBRAURY 28, 2022

.COM.GH

NEWS FOR BUSINESS LEADERS

Mr. Victor Yaw Asante

Ghana needs professionals with integrity, says FBN boss

Russia-Ukraine Crisis: ‘Ghana must guard against oil shocks’

former energy minister and member of parliament for Ellembele, Emmanuel Armah Kofi-Buah, has advised government to rapidly adopt proactive measures to mitigate an expected shocks to oil prices as the Russia-Ukraine standoff rages on. “Anytime there has been such crisis crude prices will go up, and for developing country like Ghana its impact on the Ghanaian economy is always very great - and so I think that this crisis while destabilizing what is really critical for us,” he said in his commentary on the Russia-Ukraine crisis.A “We have to look at the consequences and its impact on our economy and take the corrective step to ensure that we can really protect and have energy security that is indeed very critical for our long-term

economic development,” he added. Experts have warned that the invasion of Ukraine, combined with heavy sanctions on Russia, is likely to cause instability in the energy market, possibly translating into significantly higher costs for both gasoline and natural gas. This is because Russia is one of the world’s largest producers of oil and natural gas, disruptions in its output, whether as an unintended consequence of military action or as a response to international sanctions, can have a profound effect on energy prices. The parliamentarian also cautioned that the impact the attack on Ukraine could push up oil and food prices globally at a time of already high inflation.

The Managing Director of FBNBank Ghana, Mr. Victor Yaw Asante, has stated that Ghana needs professionals with integrity who will work to effectively contribute towards the much-needed economic development and growth of the country. Mr. Asante who was delivering the keynote address at the Induction Ceremony and 53rd Annual General Meeting of the Ghana Institution of Surveyors (GhIS) indicated that: “It is a fact that Ghana needs more professionals in all sectors of the economy; however as, I have said earlier, just numbers would not deliver the much-needed development if there is no quality and this applies to all the three divisions of the Ghana Institution of Surveyors Quantity Survey, Land Survey and Valuation & Estate Survey Divisions. MORE ON PG.3

MORE ON PG.3

76pct of global investors poised to grow their African investments, report says Global investors are set to see a significant increase in their African investments, with 76percent either studying the markets, preparing for entry or readying to deploy additional investments into the continent. This is according to the “World to Africa” report, an industry-wide study conducted by Standard Bank

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Democracy must improve lives – Alban Bagbin

| EDITORIAL/NEWS

Wash your hands 2

Cover your cough 3

If you are sick, wear mask Brought to you by

Businesses must check against internal wastages

t has emerged that businesses hardly pay attention to their stores and inventory department despite the fact, just like procurement, they control majority of company’s expenditure. It is said that most businesses do not get any value on about half of items that are sourced and kept in the stores and they are eventually thrown away when they become unusable. This revelation has stirred up the need for business leaders and owners to take special interest in the storage and use of the goods and services or items that are procured for use in the daily operations of the company. This is even more so for the public sector where there is the pressing need to protect the public purse for a nation that is in dire need of revenue for development and the provision of basic socio-economic interventions. The strategic application of stores an inventory helps to contribute to the efficient and effective utilisation of public and private financial resources; which significantly improves the competitive advantage of companies’ financial and sustainable

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business objectives and increased return on investments (ROIs). Public sector stores and inventory practitioners feel marginalised, but this course will let them appreciate how they can contribute strategically to the reduction of government’s expenditure. It has become imperative to focus on strategic stores and inventory because most organisations are struggling with dwindling working capital and cashflows for effective operations; but still have high investments and cash locked-up in goods, spare parts, items, MROs, stationeries etc.

Russia-Ukraine Crisis: ‘Ghana must guard against oil shocks’ continued from page 1

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MONDAY, FEBRAURY 28, 2022

According to him, the war in Ukraine also could have a devastating effect on some African states, threatening their economies and there was the need to be “ready” to avert any effect it will have on energy security. Global oil prices are extremely sensitive to supply disruptions. Oil prices have already surged past $100 per barrel to hit their highest level since 2014. “The budgets of oil-producing countries like Nigeria and Angola might get a boost from the rising prices, but the cost of transport is likely to rise for people across the continent. This will have a knock-on effect on the prices of nearly all other products.” Available reports indicate that negotiations are progressing steadily between the Ministry of Energy of the Republic of Ghana and Rosatom of the Russian Federation in the construction and operation of the first ever Nuclear Power Plant (NPP) in Ghana and West Africa, with Russian design power units 1000-1200 MW capacity, together with other affiliated nuclear projects. However, with the seeming crisis, it is likely to derail the plan. Ghana and Gabon - the two other African states on the UN security council - also condemned Russia.

MONDAY, FEBRAURY 28, 2022

| NEWS

Ghana needs professionals with integrity, says FBN boss The country needs not just professionals but professionals with integrity. We need Surveyors, Bankers, Doctors, Lawyers, Musicians, Actors, Architects, Engineers, Soldiers, Police Officers and many other professionals with integrity.” According to Mr. Asante, “in the case of the human resource development, I hasten to say that the GhIS is on track with its agenda. What seems to be lacking includes the legal framework for and the passing of a Survey Council Bill to regulate the three surveying divisions in Ghana. With the right legal backing, the GhIS and the Government can, for example, keep the practice of the Survey professions aligned with the regulations thereby ensuring that the required quality is available for the development of the country. We have that in the banking sector where the Bank of Ghana wields the disciplinary stick whenever necessary with good effect. It is also the case of the General Legal Council and the Ghana Medical & Dental Council, so it should not be too much of an ask to demand this

from the Survey Professionals”. “In addition to the legal framework and the Survey Council Bill, members of the Ghana Institution of Surveyors must remain committed to the ethics and values of the Institution. Personally, I believe the values of the Institution provide ample guidance for members. Talk about creativity and innovation, professionalism, ethics, teamwork, integrity and accountability. All these mean so much and would make a huge difference only if they are adhered to by members,” he added. The event which was held in the Cedi Conference Centre on the campus of the University of Ghana saw the induction of 194 new members and two members who were elevated to the class of Fellows. It formed part of the activities lined up as part of the celebration of the 17th Surveyor’s Week and the 53rd Annual General Meeting of the GhIS. President of the GHIS, Surveyor Dr. John Amaglo congratulated the new inductees on the journey they have undertaken.

He also urged them to adhere to the rules and regulations of the Institution. He entreated the inductees and new fellows to respect the code of conduct and above all render their service with integrity. He went on to advice the new members not to be content with just being inducted into the GhIS but to pursue more professional courses in order to enhance their ability and capacity. The GhIS was formed in 1969 as the umbrella body for professionals in the three survey professions

in Ghana with the mission to develop, provide and maintain excellent professional leadership in surveying disciplines, offer valuable services, advance members welfare, and positively influence the society in land management and development. With a membership of about 3,000 professionals, the GhIS is an internationally recognized professional organization committed to providing effective leadership and excellence in land resource management for sustainable development.

76pct of global investors poised to grow their African investments, report says Group and the ValueExchange, in cooperation with the Bank of New York Mellon, Africa Venture Capital Association (AVCA), South African Venture Capital Association (SAVCA), Global Custodian and MiDA. Investing in Africa is already a core activity for almost half of all global investors, particularly those in Europe. A further 36percent of global investors are readying themselves to enter African markets – either through planned market entries or account activation in the region – highlighting the growing appeal of African markets to overseas investors. The fact that this development is driven mostly by long-term, institutional investors is evidence that this growth is strategic more than opportunistic. Although volumes of Africa-bound investments are yet to return to pre-pandemic levels, the study reveals that 34percent of investors plan to increase their investments into Africa in 2022 – creating a major injection of liquidity into key markets. Whilst the majority of investors are focusing on South Africa, Nigeria and Kenya for these increased flows, sub-Saharan markets such as Botswana, Zambia and Namibia look set to benefit from growing investor confidence.

ESG and Fintech seen as major drivers. Projected investment returns from African markets are the key drivers for foreign investment flows, but the appeal of Africa as an ESG-friendly destination is also driving increased interest. European investors and those from the Asia-Pacific region, who see ESG as the second-most important driver of Africa flows today, lead the way in this trend. “This survey draws on views from over 220 institutions to give a uniquely comprehensive view of the drivers, challenges and triggers that Global Portfolio Investors face when looking at African markets. Ghana’s capital market is steadily developing and increasingly playing a pivotal role in attracting long-term capital for financing economic activities,” said William Sowah, Head, Investor Services, Stanbic Bank Ghana. He added that: “To continue on the upward trajectory, stakeholders from the industry need to collaborate to discover new horizons that will deliver prospects for Ghana’s capital market. The survey findings awaken our market to the need to focus on removing liquidity impediments and hasten the pace of reforms.” These investments are being directed into Africa’s rapidly

growing technology and fintech sectors. Whilst portfolio investors are focused on govt bonds and a basket of technology, infrastructure and natural resource stocks, the appeal of fintech as the main target for all profiles of investment is clear – particularly for large North American investors seeking global diversification. FX liquidity a core challenge Despite the increased attention on Africa, not all global investors are ready to turn to the continent. 41percent of new investors to Africa (and 27percent of existing Africainvestors) see the current state of

the continent’s foreign exchange regimes as being a core obstacle to investing. The research is clear that global investors will be strongly drawn toward countries that take action to drive local market reforms to increase and stabilise liquidity in the near future. “The results of this research proves that the continent is full of investment opportunities that will drive Africa’s growth, and the global investment community has recognised this and is ready to realise Africa’s potential,” says Chaitanya.

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MONDAY, FEBRAURY 28, 2022

Limits of human rights T

his article has been prompted by the grandiose delusion of Western nations that their standard of human rights is what should prevail in the world, and Africa, especially, would do well to fall in tow, otherwise it would suffer sanctions. Rights have been predicated of human beings, so we answer the question: What is the human being, that he should have rights? And, what rights? We begin with the Holy Bible, where we read the following: So God created man in His own image; in the image of God created him: male and female (Genesis 1:27). Man has been designed as a “god” (image of God), and as a child of the most High (with the DNA of God). It is the supernal nature of man that has enabled man to go to space and explore the galactic universe; it is the DNA of God that has made man to do all the exploits of technology, music, science, architecture, and things too numerous to mention. Man is far from ordinary; man is a species of divine wonder! Invariably, the creative impulses within us require space and exercise of free will for their actualisation. First The first “human rights” conferred on man by the Creator is found in Genesis 1: 28-30. Summarily, man is to “multiply and fill the earth”, and also to “subdue” all things placed under him. Fulfilling the mandate to fill the earth required “male and female” species, whose sexual copulation would yield the seed to fill the earth, and this principle is also apparent in animals, reptiles, birds, insects and plants. With the growth of human population, “human rights” and laws evolved to create the desired environment for peaceful co-existence and development of the human race. That environment is social order. We must understand social order to be a confluence of laws and rights that create a disciplined, legal, predictable and safe social environment for man’s optimum development. A unit of that social order is the family, then the community, and, finally, the nation. The book of Deuteronomy states some of the laws and “rights” that man needed to be a fuller person. UNDHR The United Nations Universal Declaration of Human Rights has 30

articles, some few of which are: • • We Are All Born Free & Equal. We are all born free. We all have our own thoughts and ideas. We should all be treated in the same way. • Don’t Discriminate. These rights belong to everybody, whatever our differences. • Freedom of Expression. We all have right to make up our own minds, to think what we like, to say what we think, and to share our ideas with other people. • We’re All Equal Before the Law. The law is the same for everyone. It must treat us all fairly. • The Right to Democracy. We all have the right to take part in the government of our country. Every grown-up should be allowed to choose their own leaders. • Social Security. We all have the right to affordable housing, medicine, education and childcare; enough money to live on and medical help if we are ill or old. • Marriage and Family. Every grownup has the right to marry and have a family if they want to. Men and women have the same rights when they are married, and when they are separated. The vision of the UN is to create an international social order where laws and rights within and among nations shall protect and promote humanity’s highest good. It is in pursuance of that social good that, universally, nations have laws against crime, and various infractions of civil order. Where any law or movement tends to overthrow this established social order, that law or movement becomes subversive of humanity’s progress and development. Focus It is here that the Western nations come into focus. Currently, the Western nations have promulgated laws that allow same sex marriage, and transgender through surgical operations. A man would have his penis and testicles removed and have inserted a vagina, because

he prefers to be a woman! Similarly, a woman would have the breasts removed and hormones injected into her to be masculine, because she prefers to be a man! It is now being promoted that when a child is born, it is neither “male” nor “female”; regardless of the sex, it is an “it”! When the child is grown, the child would then have the “right” to choose the “sex”! Besides the promiscuity of sexual perversions, the Western nations are now promoting Gender Ideology. Gender ideology Gender ideology is an educational curriculum that is being promulgated to teach “sexual rights” to children. In other words, the LGBTQ++ shall be inculcated in children at school. It is apparent that human rights have gone beyond the pale of normalcy into the realm of the absurd. It is needless saying that such obvious aberration of “human rights” is fundamentally contrary to the divine order of procreation, and purpose for man’s being. The Western nations are playing God! They would determine who is male and female; no more the divine order. The permissive trend apparent in Western nations would overthrow the social order that functions as the energising culture that sustains a nation. They are creating centripetal forces that would operate like a black hole in space, and suck them inside the maelstrom of destruction. There are limits to human rights. The social order is paramount to the growth and survival of every nation. Humanity owes itself a duty to protect the social order from the disintegrative forces of mindless human rights spreading like the dreaded COVID-19, and bound to destroy the nations. The writer is a lawyer. E-mail: akwesihu@ yahoo.com

MONDAY, FEBRAURY 28, 2022

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MTN Group underlines its role as a driver of Africa’s progress through brand evolution MTN Group today unveiled its evolved visual identity, articulating the context behind the logo many have seen since 16 February 2022. It is just the second brand overhaul since the Group was founded in 1994. Back in 2004, the changes made to the brand resulted in MTN taking ownership of the colour yellow that is now synonymous with MTN. Importantly it also helped to elevate the brand to where it is today, recognised as the most valuable in Africa. The brand is an extension and visual representation of the Group’s refreshed strategy, dubbed Ambition 2025 and premised on Leading digital solutions for Africa’s progress. Through the delivery of this strategy, MTN aims to accelerate growth by building the largest and most valuable platform businesses and driving its industry leading connectivity operations. “Africa is a continent with enormous opportunity and energy,”

says MTN Group President and Chief Executive Officer Ralph Mupita. “We want to play our part in harnessing her potential and supporting her progress by driving digital and financial inclusion. It is a well-known fact that the youth are central to achieving this potential. Whilst we remain focussed on all our customers and stakeholders, our brand evolution demonstrates an enhanced focus on the youth.” The new brand identity is modern, simple, bold, and digitally dynamic. It kicks off with a provocative and simple question, “What are we doing today?” With a clear and concise brand strategy that Opportunity + Energy = Progress, MTN understands that to truly unlock the full benefits and potential of the digital world people require a combination of drive, progressive thinking, and the right tools. This rebrand highlights MTN’s commitment to continuously evolve and explore innovative initiatives

that provide value to all our stakeholders. A pioneer of progress from the beginning, MTN looks to drive this progress further through action and doing. In delivering its vision, MTN aims to drive a positive shift in Africa and harness the continent’s boundless opportunity. “Africa is never still. True progress

can only be realised by ‘doing’,” says Bernice Samuels, MTN Group Executive for Marketing. “It is off this insight that we launch our new positioning by challenging, celebrating and providing tools for doers because when individuals, communities and countries progress, so too does Africa.”

Democracy must improve lives – Alban Bagbin The Speaker of Parliament, Mr. Alban S.K Bagbin, has said democracy must improve the quality of lives and meet the hopes and aspirations of citizens. To help actualize this necessity, he said the legislature must add value to interventions targeted at improving the lot of the citizenry, and not the reverse. The Speaker made the remarks when the Qatari Ambassador to Ghana, Mohammed Ahmed Al Homid, called on him at the Parliament House in Accra. Also, in Parliament to call him was the Indonesian Consular in Ghana, H.E. Pascal Rois. Both visits were aimed at exploring ways of strengthening relations between Ghana and the respective countries. It was also to understand the dynamics at play in parliament considering the composition of the House. In reference to the current composition of the House, Speaker Bagbin said: “There is the need for all of us, myself inclusive, to break this jinx, so that Ghana’s parliament can return to the days of consultation, dialogue and consensus building.” He was of the view that “the culture of give and take” must be encouraged, since that is the only way, the country can mitigate the current political tensions. He said the quality of a country’s human resource and the strength of its institutions mattered most, when it comes to democracy. He commended the leaders of

Qatar for persisting in investing in their people and building their own systems of governance and administration, irrespective of their strong relationship with western countries. Speaker Bagbin was also concerned about avenues for development, especially for women, who are financially challenged and said, “our countries cannot be fully developed, if focus and priority is only given to men, whilst women are still largely without similar opportunities to improve upon themselves.” For example, he said, out of the 275 parliamentarians in Ghana’s parliament, the females are only 40, representing 14.5 per cent, which is inadequate. He called for a stronger relationship between Ghana and Qatar to create more employment opportunities for the citizens of both countries, whilst supporting Ghana to strengthen the caliber of her human resources, through partnership in education and other capacity building interventions. The Qatari Ambassador said Ghana and Qatar share common values when it comes to democracy, particularly the role of parliament in that. Besides, he said, the two countries are committed to, not only strengthening parliament, but also strengthening the relations among parliamentary institutions under the banner of the International Parliamentary Union (IPU). AMr. Al Homid said apart from education, the energy sector, trade and commerce are areas where the

two countries can collaborate. Ahead of Qatar hosting the FIFA World Cup in 2023, the envoy wished Ghana well in the upcoming qualifiers with Nigeria and extended a welcoming hand to all Ghanaians, especially football enthusiasts to visit Qatar to watch the World Cup Tournament. The Indonesian delegation, led by the Consular, Pascal Rois, and the team from parliament discussed

capacity building exchange programmes between Ghana and Indonesia, and scholarship programmes in Indonesia that Ghanaians can take advantage of. There was a request to Ghana to waive visa requirements for Indonesian businessmen who want to explore opportunities in Ghana to help improve upon trade and commerce between the two countries.

MONDAY, FEBRAURY 28, 2022

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President Akufo-Addo commissions four ships for Navy President Nana Addo Dankwa Akufo-Addo has commissioned four new vessels for the Ghana Navy. The four aluminium offshore vessels, christened Ghana Navy Ship Volta, Ghana Navy Ship Densu, Ghana Navy Ship Pra and Ghana Navy Ship Ankobra are to enable the Navy to provide dedicated security to the country’s offshore oil and gas installations. At a ceremony on Friday at the Sekondi-Takoradi Naval Base in the Western Region, President Akufo-Addo said the acquisition of the vessels was a manifestation of the commitment of Government to retool and re-equip the Ghana Armed Forces to enable them to perform their duty of protecting the territorial integrity of Ghana. He stated that with the increase in terrorism and violent extremism from the Sahel, and piracy in the Gulf of Guinea, government was determined to spare no efforts to guarantee the nation’s territorial integrity and ensure the safety of Ghanaians. The President noted that the provision of effective maritime security was of utmost importance because Ghana’s economy was highly dependent on offshore resources, which held enormous potentials for the country’s food security and employment

generation efforts. “Therefore, the Ghana Navy, as the lead maritime security agency, deserves all the support it needs to enable it carry out its duties efficiently and effectively,” he said. President Akufo-Addo disclosed that the Government was in the process of acquiring two more offshore patrol vessels with high endurance limits, to enable the Navy to maintain constant presence at sea.

He said the Government would also procure more patrol vessels to respond to the myriad of threats along Ghana’s coastline, stressing that “financing for the acquisition of these ships has been already provided for in the security sector retooling programme initiated by the Akufo-Addo Government.” The President was hopeful that the four commissioned vessels would empower the Navy in collaboration with other services

to protect Ghana’s maritime domain, “which will, in turn, serve as a boost for the fisheries and shipping sectors as well as for offshore oil and gas production.” He reaffirmed his confidence and that of the nation in the competence, dedication and professionalism of the officers, men, women and civilian staff of the Ghana Armed Forces. “Their loyalty to the Republic and to the maintenance of its constitutional order continues to be exemplary. I am glad to note, in particular, the achievements of the Navy in the fight against piracy, fuel smuggling and other maritime crimes,” he said. President Akufo-Addo reassured the security services that his government would not waiver in its quest to empower the security and intelligence services. “On your part, the Ghanaian people expect you to superintend over the judicious and productive use of these assets, so as to help secure the integrity, peace and stability of our nation,” he added. The four “River Class” 40-meter vessels, named after some of Ghana’s famous rivers, were acquired through a public-private partnership between the Ministry of Defence, Israel Shipyards Ltd, Ghana Commercial Bank and two international oil companies.

Ghanaian students evacuated to Romania from war-torn Ukraine Ghanaian students living in the city of Chernivtsi, Ukraine, have arrived safely in Romania. They were evacuated following the Ministry of Foreign Affairs and Regional Integration’s arrangement for Ghanaian students to leave Ukraine. According to the Foreign Affairs Ministry, due to the difficulty in airlifting the students, as a result of the shutdown of Ukraine’s airspace, it arranged for them to be evacuated by land through Belarus, Moldova, Hungary and Slovakia. The students who have arrived in Romania will be catered for by the Romanian government, according to arrangements made by Ghana’s Foreign Affairs Ministry. In a tweet by the National Union of Ghana Students (NUGS) on Saturday, 26 February 2022, the association confirmed the safe arrival of the students in Romania.

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MONDAY, FEBRAURY 28, 2022

Samsung announces Galaxy S22 Series Challenge for media and content creators Samsung Ghana has officially announced the 2022 edition of the Galaxy Challenge, a popular technology competition for Ghanaian media, content creators, and tech fans. This year’s Galaxy Challenge, which focuses on the new groundbreaking Galaxy S22 series, is open to journalists, bloggers, content creators, and social media influencers. The competition aims to create an avenue where participants can express their passionate views on these incredibly-innovative devices and win amazing prizes along the way. These content creators are challenged to publish at least two stories or video content that capture the magic of the Galaxy S22 series devices - Galaxy S22, Galaxy S22+, and the Galaxy S22 Ultra. In a statement to announce the Galaxy Challenge, Head of Marketing at Samsung Ghana, Tracy Kyei, said, “Samsung is committed to supporting local content creators and the media by providing the platform to enable them to do more. The Galaxy Challenge allows them to ignite their creativity and express their passions and talent.” Winners will be determined based on six thematic areas: Accuracy,

Clarity, Eco-System Integration, Device Usability, Consumer Benefit, and the overall Content Appeal. The prizes for the Galaxy Challenge include Samsung’s most powerful

Galaxy yet, the Galaxy S22 Ultra, the versatile Galaxy TabS8, the popular Galaxy Buds Pro, and other exciting goodies from Samsung.

Energy Minister leads 2022 Energy Sector Work Programme Retreat The Minister for Energy, Dr. Matthew Opoku Prempeh, has opened a three-day work retreat at the Aqua Safari Resort in Ada for CEOs and Board Chairpersons of the energy sector agencies, as well as other stakeholders. In his opening remarks, Dr. Prempeh, who is also the MP for Manhyia South, stated that the retreat was a valuable opportunity to openly and frankly discuss issues that concern all in the sector, take stock and strategize for 2022 and the years ahead. Setting out the energy sector medium-term objectives, Dr. Prempeh charged the gathering to ensure loyalty to this mandate. “We must at all times endeavour to keep our eye on the ball by focusing on these objectives as the centrepiece of all the work that we do. I do not need to remind us of the important role of our sector in the economic development of this

country and most importantly ensuring comfortable lives for the citizenry in the pursuit of their livelihoods”, he declared. He noted further that the past year has seen a number of positive outcomes in the energy sector and commended agency heads for the efforts in the progress made in their various agencies. However, he noted that there are still issues to pay attention to and improve upon. He said the team would be discussing these issues during the various presentations. Setting out his expectations for the weekend, the Minister declared, “As we engage with your agencies to discuss your work output in 2021 and your work plan in 2022, I expect frank, healthy exchanges with only one goal in mind, which is how to improve the lives of Ghanaians through the work we do.”

MONDAY, FEBRAURY 28, 2022

| ENERGY

The case for a punitive tax on Russian oil BY RICARDO HAUSMANN

s I write, Russia’s army has entered Ukraine’s capital, Kyiv. It is clear now that the threat of sanctions did not dissuade Russian President Vladimir Putin from launching his invasion. But making good on the threat can still play two other roles: Sanctions can limit Russia’s capacity to project power by weakening its economy, and they can create a precedent that might influence Putin’s future behavior vis-à-vis other countries such as Georgia, Moldova, and the Baltic states. One reason why the threat of sanctions might not have prevented war is that Russia did not regard them as credible. If imposing a sanction is costly, the political will to do so may be weak or evaporate over time. For example, Western consumers are already upset at the high energy costs. An embargo on Russian oil will reduce the global energy supply and send prices even higher, potentially triggering a backlash against the policy. That may be why Western countries have not imposed it, opting instead for financial sanctions that have, so far, been underwhelming. After all, arguably the most significant sanction to date – the suspension of the Nord Stream 2 pipeline that would have delivered Russian natural gas directly to Germany – will strain Europe’s already tight natural gas market. Sanctions are more effective and credible if they impose large costs on the intended target but entail small costs or even benefits for those imposing them. Finding such sanctions is easier said than done, as the Nord Stream 2 project shows. So, what instruments does the West have in its arsenal? One that has received surprisingly little attention is punitive taxes on Russian oil and gas. At first sight, imposing a tax on a good must increase its price, making energy even more expensive for Western consumers. Right? Wrong! At issue is something called tax incidence analysis, which is taught in basic microeconomics courses. A tax on a good, such as Russian oil, will affect both supply and demand, changing the good’s price. How much the price changes, and who bears the cost of the tax, depends on how sensitive both supply and demand are to the tax, or what economists call elasticity. The more elastic the demand, the more the producer bears the cost of the tax because consumers have more options. The more inelastic the supply, the more the producer – again – bears the tax, because it has fewer

options. Fortunately, this is precisely the situation the West now confronts. Demand for Russian oil is highly elastic, because consumers do not really care if the oil they use comes from Russia, the Gulf, or somewhere else. They are unwilling to pay more for Russian oil if other oil with similar properties is available. Hence, the price of Russian oil after tax is pinned down by the market price of all other oil. At the same time, the supply of Russian oil is very inelastic, meaning that large changes in the price to the producer do not induce changes in supply. Here, the numbers are staggering. According to the Russian energy group Rosneft’s financial statements for 2021, the firm’s upstream operating costs are $2.70 per barrel. Likewise, Rystad Energy, a business-intelligence company, estimates the total variable cost of production of Russian oil (excluding taxes and capital costs) at $5.67 per barrel. Put differently, even if the oil price fell to $6 per barrel (it’s above $100 now), it

would still be in Rosneft’s interest to keep pumping: Supply is truly inelastic in the short run. Obviously, under those conditions, it would not be profitable to invest in maintaining or expanding production capacity, and oil output would gradually decline – as it always does because of depletion and loss of reservoir pressure. But this will take time, and by then, others may move in to take over Russia’s market share. In other words, given very high demand elasticity and very low short-term supply elasticity, a tax on Russian oil would be paid essentially by Russia. Instead of being costly for the world, imposing such a tax would actually be profitable. A punitive global tax on Russian oil – at a rate of, say, 90%, or $90 per barrel – could extract and transfer to the world some $300 billion per year from Putin’s war chest, or about 20% of Russia’s 2021 GDP. And it would be infinitely more convenient than an embargo on Russian oil, which would enrich other producers and impoverish consumers. This logic also applies to Nord

Stream 2. A tax equal to 90% of the European Union’s natural gas price, which is currently around €90 ($101) per megawatt-hour, would keep Russian gas in the market but expropriate the rent. But how feasible would a 90% world tax on Russian oil be? In 2019, 55% of Russia’s exports of mineral fuels (including oil, natural gas, and coal) went to the EU, while a further 13% went to Japan, South Korea, Singapore, and Turkey. China got only 18%. If all these countries except China agreed to tax Russian oil at 90%, Russia would try to sell all its oil to China. But this would put China in a strong negotiating position. In such a scenario, it would be in China’s interest to impose the tax, because such an instrument would extract the rent that it would otherwise have to pay to Russia. In short, a punitive tax on Russian oil would both significantly weaken Russia and benefit consuming countries, making it more credible and sustainable than an embargo. The idea deserves considerably more attention that it has received.

| F E AT U R E

GEOPOLITICIZED INDUSTRIAL POLICY WON’T WORK BY OTAVIANO CANUTO, JUSTIN YIFU LIN, PEPE ZHANG

andemic-induced supply shortages have heightened national security concerns in advanced economies. Worried about overdependence on Chinese manufacturing, the United States, the European Union, and Japan have each proposed initiatives to relocate production. And they are not alone. The geopoliticization of the trade-industry-security nexus is gaining momentum in the developing world as well. From the Western Balkans to Latin America, governments see a major post-COVID economic opportunity in reshoring and nearshoring production. But such ambitions may prove too optimistic. Despite the declining prevalence of just-in-time manufacturing, Chinese exports appear to have strengthened two years into the pandemic, owing to relative supply-side resilience and a shift (perhaps temporary) in global demand from services to goods. Moreover, early indications suggest that much of Latin America, for example, has yet to outcompete China or other Asian exporters in the US market, despite the region’s potential as a site for nearshoring during COVID-19 and the reduction or even reversal of China’s labor cost advantages over Mexico and Brazil. Reconfiguring supply chains turns out to be more complex than initially believed. Undoing three decades of international production patterns – which have particularly benefited Asia – will take more than just favorable geography, partial cost savings, or oneoff political and economic incentives. For starters, governments hoping to reshore and nearshore production must get back to economic basics. Without sustained improvement in domestic fundamentals – including macroeconomic stability, regulatory and legal certainty and simplicity, physical infrastructure, education and skills, productivity and innovation, and export promotion and facilitation – investors’ interest will be modest and short-lived. Effective public institutions and policies are vital to safeguarding these fundamentals. Second, governments must be realistic and precise in picking “winners,” relying on careful assessments of existing or latent comparative advantages. Recklessly supporting

unviable companies risks distorting domestic and international competition and crowding out private-sector investors. It also carries a significant opportunity cost, given today’s budget constraints, particularly in many low- and middle-income countries (LMICs). An outsize focus on import-substitution industrialization, as in Latin America in the third quarter of the twentieth century, is more likely to result in inefficient resource allocation than long-term success. Third, regional integration remains a powerful tool for galvanizing trade and broader economic competitiveness, openness, and standard setting. Consider the ASEANled Regional Comprehensive Economic Partnership, which entered into force this year. Not only is the RCEP now the world’s largest trade bloc, encompassing nearly one-third of global GDP; it also represents an important milestone toward harmonizing the “spaghetti bowl” of free-trade agreements in Asia. Similarly, by reducing tariff and nontariff barriers and allowing for other complementary policy reforms, the year-old African Continental Free Trade Area (AfCFTA) could lift 30 million Africans out of extreme poverty by 2035. Globally, demand for closer economic integration and coordination beyond trade – through “deep trade agreements” that harmonize investment protection, labor and environmental standards, and property rights, and through initiatives like the G7’s global minimum corporate income tax – will continue to rise. Fourth, in addition to drawing on valuable lessons from the “old” industrial-policy playbook, governments should pay close attention to new opportunities and challenges. For example, while digitization of cross-border

MONDAY, FEBRAURY 28, 2022

trade (specifically in software and business processes) is lowering entry barriers and reducing the costs of scaling for entire export sectors, increased environmental awareness and new compliance standards (such as the EU’s carbon border adjustment mechanism) will push manufacturers to become greencompetitive. Finally, and relatedly, forward-looking policymaking will require answering some tough questions beyond politics and geopolitics. In the short and medium term, is reshoring or nearshoring really the big opportunity that some experts claim, or should governments focus on other priorities? In the longer term, what type of industrialization and trade policy will be most beneficial and future-proof? For advanced economies, a major challenge lies in overcoming what Adam Posen calls the “nostalgia or fetishization of manufacturing jobs.” Traditional manufacturing jobs are politically important, yet their share of overall employment in high-income countries is unlikely to grow. Reskilling and upskilling therefore are needed to smooth out the eventual labor-market adjustments. Highly sensitive sectors such as semiconductors and pharmaceuticals may be among the few that could meaningfully benefit from reshoring – a process that involves many case-by-case tradeoffs between cost and resilience. As for LMICs, labor-cost advantages, enhanced infrastructure, and the shortening of global value chains should generate opportunities over time, especially as China shifts toward more sophisticated, higher valueadded production. Yet the extent to which LMICs can transform these opportunities into real investment and export gains will depend on getting the fundamentals right. There may be considerable variation across countries, regions, and stages of development. Robotics and automation also could pose a challenge by moving some production processes back to developed countries. Another key question for LMICs is whether the manufacturing-based, labor-intensive, export-led growth model that worked for the Asian Tigers will remain sufficiently effective for others 20 or more years from now. In this heated debate, skeptics argue that as the contributions to global growth from trade stall or diminish, export-based growth policies may need to be reconsidered. But even the skeptics would agree with three underlying assessments: a wholesale changeover is unlikely to occur overnight; industrial upgrading and productivity growth – in goods or services – will remain essential; and even for manufacturers exclusively serving a domestic market (or that are unlikely to become exporters), productive linkages with downstream suppliers or upstream partners will not completely disappear. Looking ahead, these considerations, not the geopoliticization of supply chains, should shape governments’ interests and priorities in industrial policy. In a contradictory context of worsening fiscal positions and rising subsidies around the world, clear-eyed policymaking and precisely targeted, performance-based support is needed more than ever, especially in bootstrapping LMICs. Hopes of reshoring and nearshoring – and a wider revitalization of national industries or exports – are more attainable in countries committed to the fundamentals, and less so in those using supply-chain overhauls as a political talking point. There are no shortcuts to economic development.

MONDAY, FEBRAURY 28, 2022

| AFRICAN BUSINESS

Could the COVID-19 virus evade the vaccines?

By William A. Haseltine

t is now well known that SARSCoV-2 can mutate to evade vaccine protection against infection. The Omicron variants – BA.1, B1.1, and BA.2 – can infect those who were previously infected by other variants, even when vaccinated. And though a third booster shot offers some protection from an Omicron infection, it wanes after three or four months, leaving most people susceptible to reinfection. That said, the immunity conveyed by prior infection or vaccination still dramatically reduces the incidence of hospitalization and death. We also have come to realize that our main saviors against COVID-19 turn out not to be antibodies, but rather another part of the immune system: our T cells. Studies show that the strength of our long-lived T-cell response to SARSCoV-2 proteins – especially by T cells that recognize the virus spike protein – strongly correlates with the degree of protection. There are two types of T cells, CD4+ and CD8+, which are distinguished by proteins on their surface. Because CD4+ T cells mostly assist in the production of antibodies, the CD8+ T cells are the real heroes of the story. Once they identify an invader they remember from a previous encounter, they act quickly to move in for the kill, demolishing infected cells and cutting short the life cycle of the virus. Until Omicron, the differences in neutralization by vaccine-induced antibodies and by monoclonal antibodies were relatively minor. But the process by which T cells recognize viral proteins is very different from that of antibodies, which recognize structures on the intact viral protein. We know that these critical structures, particularly those of the exterior spike protein, differ from variant to variant. It is precisely such structural diversity that allows the virus to evade most antibodies made in response to natural infection and vaccination. By contrast, our T cells do not recognize intact proteins. Rather, T-cell recognition occurs when a viral protein within a cell is chopped into short segments and cradled in the grip of a cellular protein called MHC type 1. MHC type 1 presents the viral fragment to the T cell at the cell surface, where the T cell can recognize the combination of the viral fragment presented by the MHC type 1 protein. All told, T cells recognize and react to a very broad array of viral protein fragments. For SARS-CoV-2, these fragments overlap very little with the regions of the virus that are sensitive to neutralization by antibodies. That is why T-cell responses to viral infection are generally preserved across variants. Until Omicron, vaccines that use one viral protein raised almost the same T-cell response to all variants. But now the situation has changed. Not everyone

is alike when it comes to binding viral protein fragments. Our MHC type 1 proteins are diverse, and each recognizes a unique set of viral protein fragments. Our reaction to viral proteins thus depends on their sequence and that of our own particular MHC type 1 set of proteins. Consider a recent study by Gaurav D. Gaiha and his colleagues, who examined T-cell responses to the Wuhan, Delta, and Omicron strains in people who have been either infected, vaccinated, and boosted, or infected and vaccinated (but not boosted). They found that most people who are infected after vaccination have strong and durable CD4+- and CD8+-positive responses to all three variants. But there was one worrying discovery. Approximately 20% of those vaccinated showed a decline of greater than 50% in T-cell response to Omicron, compared to the Wuhan and Delta variants; and in some the decline was even more profound. These poor T-cell responses were not correlated with sex or age, and follow-up experiments revealed that the difference was due to lower CD8+ reactivity, rather than to the CD4+ T-cell response. The authors therefore refined the analysis by examining T cells’ ability to recognize specific fragments of viral proteins. To that end, they used a set of short protein fragments to recreate the entire spike protein, and they used a similar set of protein fragments corresponding to the virus’s other structural proteins. They found that whereas T cells recognized all the viral fragments of the spike protein used for vaccination, they failed to recognize some of the protein fragments. The authors thus speculate that CD8+ T cells’ inability to respond to Omicron may be due to

a lack of recognition of the mutated peptides. Indeed, their theoretical calculations are consistent with the hypothesis that changes in the amino acid sequence of the Omicron spike protein underlie the observed blind spots in T-cell recognition. Inherited differences in the ability to recognize specific protein fragments likely account for some people’s failure to mount anti-Omicron defenses. The authors have conjectured that “it is possible that these individuals will have reduced protection against severe disease.” One sobering conclusion, then, is that Omicron has drifted so far from the original strain that the 20% cohort in the study may not be fully protected either from infection or from hospitalization and death. However, after finding that a third vaccine dose increases T-cell responses by twentyfold or more, even for those who respond poorly, Gaiha has a more optimistic take. “While the Omicron spike protein was able to escape T cells in a subset of individuals,” he told me, “what we learned is that this deficiency in T-cell recognition can be overcome by booster vaccination. In addition, we found that nonspike proteins could be attractive targets for second-generation vaccines to protect against future SARS-CoV-2 evolution.” Gaiha espouses the optimistic interpretation. But Omicron is a warning that future SARSCoV-2 variants may escape protection from both antibodies and T-cell immunity. We cannot predict that a variant that evades vaccines’ ability to protect against infection and serious illness will arise, but we must be prepared for such a threat, lest we remain unguarded against it.

| NEWS

MONDAY, FEBRAURY 28, 2022

UGBS receives cash donation from Stanbic Bank A seven-member delegation from Stanbic Bank Ghana presented a cheque donation of GH¢ 75,000.00 to support the UGBS Endowment Fund. The Dean of the University of Ghana Business School, Prof. Justice Bawole, received the donation on behalf of the school. He welcomed the Stanbic team and showed appreciation for supporting the initiative of acquiring the school’s target of GH¢ 100 million. Dr. Benjamin Amoah, a lecturer at the Department of Finance, also gave a short introduction as to how this support request got to Stanbic Bank and showed great appreciation for their positive response. Presenting the cheque was the Communications Manager at Stanbic Bank, Mr. Kojo Larbi, who accepted the warm welcome and mentioned that they have a very

long relationship with the Business School, and they would continue to show support. Mr. Larbi stated that the future of Africa is the youth, and supporting education is key to guiding Ghana’s growth. He also added that since this is a month of love, what better way is there to show love than to support such a good cause. He concluded by saying whatever they do for this community would be unforgettable and the school’s contribution to mother Ghana would be very commendable. Professor Bawole expressed his gratitude to Stanbic Bank for responding positively to the project. He stated that the goal of this project is to brighten the lives of young talented but underprivileged students. The Dean stated that the Business School is happy to be affiliated with the Stanbic brand and that the two institutions would

continue to collaborate in the future. Other individuals who were present at the ceremony were Mr. Emmanuel Poku-Sarkodee, the School Administrator, Mrs. Safatu Salifu, the Assistant Registrar, Ms. Afia Domfeh, UGBS Endowment Fund Officer, Mr. Kojo Larbi,

Communications Manager (Stanbic Bank), and some representatives from Stanbic Bank Ghana. UGBS wishes to say Ayekoo too Stanbic Bank Ghana for their continuous support.

UTAG strike over, University of Ghana resumes lectures Monday The University of Ghana (UG) says it will resume lectures on Monday, February 28, 2022, despite a vote against the suspension of the strike by majority of its University Teachers Association of Ghana (UTAG) members. A notice to the University Community indicated that the decision was arrived at after a meeting by the Business and Executive Committee of UG, which had approved a revised academic calendar for the 2021/2022 academic year. According to the notice, “Students, faculty and staff should take note of this, in anticipation that the ongoing ratification processes of the UTAG branches will finalise the suspension of the strike, as announced by their National Executive Committee.” Some students in an interview with the GNA expressed delight at the notice and hopeful that the grievances of the lecturers would be addressed. Elia Asante, a level 300 student, said he was happy that lectures were about to begin, saying, “it has been very difficult period for us being on campus without lectures.” He called on government to “fully” address the concerns of the lecturers for classes to resume without disruptions. Nana Kwegyirba Koomson, a level 200 student said, “It’s boring on campus, there is no motivation here and we are stranded. We are hopeful of the commencement of serious academic work.” Aseda Foawaa Sarpong, a level

400 student, said the strike had affected their project work. “Because of the strike, our lecturers are not mostly around to supervise our project and our timelines are always being drawn back,” she added. The?Kwame Nkrumah University of Science and Technology (KNUST) announced the resumption of academic activities from Thursday, February 24, 2022. A statement signed by Margret Dzisi, Deputy Registrar of KNUST, on Tuesday, 22 February 2022, said the decision was taken following the suspension by UTAG.

Also, the?Ghana Institute of Journalism (GIJ) has served notice that it would resume lectures on Monday, 28 February 2022. “Management has today, 22nd February 2022, approved the following interim reopening arrangements pending the approval of the Revised Academic Calendar and Schedule of Lectures by the Academic Board,” it said in a notice. The National Executive Committee of UTAG suspended its six-week industrial action after an emergency meeting on Monday, February 21, 2022. The suspension expected to

last till March 4, 2022, is to allow negotiations to commence. This follows an interlocutory injunction against UTAG’s industrial action granted by the Labour Division of an Accra High Court on February 15, after?an appeal by the National Labour Commission (NLC). The Court presided over by Mr Justice Frank Abodwe granted the injunction based on Article 296 of the 1992 constitution, saying negotiations could not go well if the respondents (UTAG) failed to call of its strike. UTAG had been on strike since January 10, 2022, over their “worsening” conditions of service.

MONDAY, FEBRAURY 28, 2022

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

The economic consequences of the Ukraine war

BY JASON FURMAN

ussia’s invasion of Ukraine has been rapid and dramatic, but the economic consequences will be much slower to materialize and less spectacular. The war itself is enormously tragic, first and foremost for the Ukrainian people, but also for the Russian people and the global order more generally. When something like this happens, we expect it to be like a morality play in which all the bad consequences play out equally dramatically in every dimension, including the economy. But the economy does not work that way. True, financial markets reacted swiftly to news of Russia’s invasion. The MSCI All Country World Index, a leading global equity gauge, fell to its lowest level in almost a year. The price of oil rose above $100 a barrel, while European natural gas prices initially surged by almost 70%. These energy-price increases will negatively affect the global economy. Europe is especially vulnerable, because it did little in recent years to reduce its dependence on Russian gas, and in some cases – notably, Germany, which abandoned nuclear power – even exacerbated it. Oil-importing countries will experience a headwind from higher prices. The United States is more hedged: Because its oil production is equal to its oil consumption, more expensive oil is roughly neutral for GDP. But higher oil prices will hurt US consumers while helping a more limited segment of businesses and workers tied to the oil and gas industry. The price surge will also add to inflation, which

is already at its highest levels in a generation in the US, Europe, and other advanced economies. But some perspective on these immediate consequences is in order. At $100 a barrel, oil is about one-quarter below its inflationadjusted price during 2011 to 2014. Moreover, prices for oil futures are lower than spot prices, suggesting that the market expects this increase to be temporary. Central banks may therefore largely look through events in Ukraine, neither holding off on tightening nor speeding it up in response to higher headline inflation. And global stock markets are still up over the last year. Similarly, although the Russian stock market has fallen significantly since the start of the invasion, Western sanctions are unlikely to have immediate dramatic effects. Sanctions rarely do; they are simply not the economic equivalent of the bombs that Russia is currently dropping on Ukraine. Moreover, Russia is better prepared than most countries to weather sanctions. The country has been running an enormous current-account surplus and has accumulated record foreign-exchange reserves of $630 billion – sufficient to cover nearly two years of imports. And while Russia is dependent on revenue from Europe, Europeans are dependent on Russia’s oil and gas – which may be even harder to replace in the short run. But, in the longer term, Russia will likely be the biggest economic loser from the conflict (after Ukraine, whose losses will go well beyond what can be measured in the national accounts). Russia’s economy, and the well-being of its population, have been stagnant since the Kremlin’s 2014 annexation of Crimea. The fallout from its current, large-scale invasion will almost certainly be more severe over time. Sanctions will increasingly take a toll, and Russia’s growing isolation, as well as heightened investor uncertainty, will weaken trade and

other economic links. In addition, Europe can be expected to reduce its fossil-fuel dependence on Russia. The longer-term economic consequences for the rest of the world will be far less severe than they are for Russia, but they will still be a persistent challenge for policymakers. There is a risk, albeit a relatively unlikely one, that higher short-run inflation will become embedded in increasingly unanchored inflation expectations, and thus persist. If that happens, central banks’ already difficult job will become even more complicated. In addition, defense budgets are likely to rise in Europe, the US, and some other countries to reflect the increasingly dangerous global situation. This will not reduce GDP growth, but it will reduce people’s well-being, because resources dedicated to defense are resources that cannot go toward consumption or investment in education, health care, or infrastructure. The medium- and long-term consequences for the global economy of Russia’s invasion of Ukraine will depend on choices. By invading, Russia has already made one terrible choice. The US, the European Union, and other governments have made initial choices on sanctions, but it remains to be seen how Russia will react to them or whether further penalties will be imposed. To the extent that sanctions and counter-responses escalate, the costs will be larger – first and foremost for Russia, but also to some degree for the rest of the global economy. Global economic relations are positivesum, and Russia’s growing isolation will remove a small positive. More broadly, uncertainty is never good for the economy. But, as the world continues to respond to the Russian invasion, concerns about GDP seem minor by comparison. Far more important is a world where people and countries feel secure. And that is something worth paying for – even more than the world’s leaders have paid so far.

MONDAY, FEBRAURY 28, 2022

|E-COMMERCE

E-commerce transformations; how tech unicorns are utilizing new technologies to better serve consumers BY PHILIP GEBU

hings are not the same as before. A lot has changed over the past few years all around the world. In football, underdogs have won major titles that no one believed they could. Famous people and world leaders have passed away. Everywhere you look, there have been changes and transformations. In technology, however, the transformation is enormous and the changes are erratic. Day-in-Day-out, we wake up to something truly incredible. Technologies that are causing major developments and making life easier. There are certain technologies that are causing positive e-commerce transformations in Africa and Ghana. Jumia, Africa’s leading e-commerce ecosystem takes a look at a couple of them below. 1.Mobile Apps - How do you ensure that your products and services are always visible and easily accessible to consumers? Averagely, Africans spend about 5hours daily on their mobile devices. Over 65% of this time is spent on several mobile apps either shopping, paying bills or having some fun time on social media. Mobile apps help to increase customer engagement through treasure hunts, puzzles, flash sales and push notifications. This technology has helped many businesses grow in terms of new customers, customer engagement and and customer loyalty. 2.Smart Lockers - One new technology that has become very important over the past few years, especially with the covid-19 pandemic in perspective has been the smart locker. Safety, convenience, less human interaction and speed of receiving ordered items are among the big benefits of using smart lockers. E-commerce companies like Jumia have partnered with smart locker companies like LocQar to bring online deliveries closer to consumers. It takes just about 7 seconds from the time a customer reaches the locker to the time he/she retrieves the package. With CCTV cameras in well-secured zones, using smart lockers is a sure safe way of receiving online orders these days. 3.GPS - Also known as the ‘’Global Positioning System’’, the GPS has been a technological revelation in recent years. This has supported e-commerce businesses so much that it is nearly impossible to successfully execute online deliveries without them. Digital addresses are making it easier to locate customers who order

essential items. In the past, using a general landmark may end the delivery agent in someone’s backyard or kitchen. Today, due to GPS and digital addresses, it is very easy for customers to be located and deliveries to be made at their doorstep. Whether at home or in the office, GPS makes it possible and stressfree for you to receive your online order. 4.Digital Payments - Every business transaction involves payment of some kind. Over the years, carrying large sums of money when executing business deals have become very risky. Can you imagine counting Ghs 200 million in cash for an online real estate transaction? What about the number of notes you need to carry along to buy 20 televisions for your newly built hotel? It is fairly easier to

pay your bills online or pay for your online orders in advance before receiving them. Apart from avoiding physical contact through cashless transactions, digital payments also ensure commitment from customers to buy these items. Today, it is very easy to pay your water bills, electricity, DSTV and other subscriptions online. Online platforms like JumiaPay make it very easy to do such transactions. Many tech companies are utilizing new technologies to better serve customers. With research and development on a daily basis, the potential of e-commerce growth is exponential. Do not blink, before you know it, something new and technologically impossible may just unfold before your eyes.

| NEWS

MONDAY, FEBRAURY 28, 2022

KOICA Ghana Office resumes World Friends Korea Programme The Korea International Cooperation Agency (KOICA) office in Ghana has re-launched its flagship volunteer programme called World Friends Korea (WFK) Volunteer Programme. The programme is an overseas volunteer scheme that dispatches volunteers to partner countries to serve. The programme was temporarily suspended in March, 2020 due to the outbreak of the Covid-19 pandemic. According to the country Director of KOICS, Mr Mooheon Kong, two volunteers arrived in Accra on Friday, February 25, 2022 as part of the commencement of the programme. He said the volunteers will be dispatched to two schools in the Greater Accra Region where they will share their knowledge and expertise in Physical Education and Early Childhood Education. The schools to benefit from the programme are Abbey D/A Basic School and Dawhenya Methodist School. He added that the volunteers will be there for a year. He further explained that the resumption of WFK programme is in the line with KOICAs National Youth Volunteer Program’s (NYVP). NYVP aims at building the capacity and careers of volunteers

to make them competitive in opportunities from all over the world whiles increasing mutual cooperation from various types of volunteer programmes, he stated. With this comeback, KOICA Ghana office looks forward to strengthening its support for Ghana’s socio-cultural development through volunteers’ activities, he added. Background KOICA was established in 1991 as a governmental organisation to implement the

Korean government’s grant aid and technical cooperation programmes. KOICA Ghana Office has been supporting and implementing developmental programmes in Ghana in four key sectoral areas—Public Health, Agricultural and Rural Development, Energy and Education. Since its inception in 2016, KOICA Ghana office through the WFK Programme has dispatched volunteers each year with the aim of sharing their expertise

and experiences and to make practical contributions to the socioeconomic development of Ghana while strengthening the mutual understanding between the government of Ghana and the Republic of South Korea. So far, a total of 25 persons including volunteers, officers and global doctors have been dispatched to various public and international organisations throughout the regions in the country and more will be dispatched in the future.

3 Days Training Workshop Theme: Contemporary Stores and Inventory Management Company ProSupp Consult is a multidisciplinary professional service group drawn from diverse top quartile multinational and public firms providing dynamic procurement and supply chain management services and trainings. Course Overview It has become imperative to focus on Strategic Stores and Inventory because most organisations are struggling with dwindling working capital and cashflows for effective operations; but still have high investments and cash locked-up in goods, spare parts, items, MROs, stationeries etc. The strategic application of Stores and Inventory helps to contribute to the efficient and effective utilisation of public and private financial resources; which significantly improves the competitive advantage of companies, financial and sustainable business objectives and an increased Return On Investment (ROI). Again, Public Sector Stores and Inventory Practitioners feel marginalised, but this course will let them appreciate how they can contribute strategically to the reduction of government’s expenditure. This module is designed to put the public and private sectors’ Stores and Inventory systems in context. It will be based on an experiential learning; applying theory in a practical way to foster good practice and application. The Facilitator The Facilitator is an Award Winning Procurement and Supply Chain Management Professional with over twenty years practice in both local and international organisations in various industries including Financial Institutions, United Nations, Construction, Embassies and Manufacturing. Serves on Entity Tender Committees for a number of Public and Private Organizations. An Adjunct Lecturer, Board Member, Independent Consultant and the Current President, Ghana Institute of Procurement and Supply. Collins Agyemang Sarpong MGIPS, MCIPS, MBA, CIPP

COURSE OUTLINE • Inventory Control (Stock Controls) Definitions, Systems and Management • Best Practices for conducting an inventory counts • Stakeholder Management and Engagement for efficient operations • Economics of Stores and Inventory (Order Levels and EOQs) • Strategic Stores and Inventory (Cashflow and Working Capital Impact ) • Codification and Digitization for efficient operations • Different Inventory Modules, Methods and Techniques • Stores Space optimization • Practically undertake disposal of unserviceable items as per Act 663 • Heath, Security and Safety in the stores (OSHA Regulations) • Lowering carrying cost strategies • Case Studies • Development of 90 days Actions Plans Who should attend? Public and private sector Stores and Inventory Managers, Supply Officers, Procurement Managers, Logistics Managers, Internal Auditors, Finance Managers, Entity Tender Committee Members and all responsible for overseeing Stores and Inventory operations in their organisations.

Date:

23rd - 25th February 2022

Theme: Fee:

Contemporary Stores and Inventory Management

GHC 2,000 per participant (Inclusive of Course Materials, Certificates, Lunch and Coffee/Tea breaks)

Venue:

Coconut Groove Hotel, 5th Mozambique Link, Accra

REGISTRATION Please make the necessary payment into the following account details;

Account name: ProSupp Consult, Account Number: 1114682 Bank: ABSA Bank, Branch: Osu. Please contact the ProSupp office on 0302733425 / 0546896814 for any assistance and clarifications and also please alert the office when you have made payment.

| F E AT U R E

MONDAY, FEBRAURY 28, 2022

A Decade of Ghana’s Act 843: The good, the bad and the ugly SHERRIF ISSAH

This year marks the 10th anniversary of the inception of Ghana’s Data Protection Act, 2012 (Act 843). The Act was assented to on 10th May 2012 and became enforceable on 16th October 2012. It sets out the rules and principles governing the collection, use, disclosure, and care for personally identifiable information by data controllers and data processors. It also establishes the Data Protection Commission (DPC) with the core mandate of ensuring compliance with the provisions of the Act, to protect data subjects. The Act applies to any organization established in Ghana and processes data in Ghana, any organization that is not established in Ghana but uses equipment or data processors in Ghana, and any organization that processes information originating in part or in whole from Ghana. There are key activities that data controllers (organizations) can undertake to help their compliance journey. Some of these activities include registering with the DPC, renewing the registration every two years, officially appointing and training a data protection supervisor, conducting data protection gap analysis, establishing and implementing data protection policies, and providing data protection training for employees. Since the inception of the Act, there are areas that we have done well (The Good), there are others that we could have done better (The Bad), and there are others that we have performed abysmally (The Ugly). This article discusses some of these issues and proffers recommendations. The Good In line with section 1 of the Act, the government of Ghana officially launched the DPC on 18th November 2014. This was a major milestone for data protection in Ghana. The DPC (commission) has sanctioned specific training for data protection supervisors (DPS) and does not recognize any other data protection training (Either locally or internationally). This is very laudable in that, it allows the DPS to receive training appropriate to the context of Ghana and Act 843. Ghana has been able to ratify the African Union Convention on Cyber Security and Personal Data Protection (Malabo Convention). The document covers requirements on electronic transactions, data privacy, and cybersecurity. Out of the 10 African countries that have

ratified the convention, Ghana was the 5th to ratify in May 2019. This is a clear demonstration of our commitment to data protection. The commission has been able to improve the registration process for data controllers. The initial registration process was manual and cumbersome. The commission has acquired a web-based application that helps in easy and timely registration. The application also helps assess data controllers’ compliance status and provides a roadmap for compliance. The commission granted amnesty to data controllers who had not registered with it in the past years. The 6 months amnesty (1st October 2020 to 31st March 2021) was meant to allow data controllers to register and pay only the current year’s fee, without the arrears. This is very laudable as it encouraged data controllers who had earlier not registered with the commission to do so. The commission has also collaborated with the Ghana Internal Audit Agency to train Internal Auditors to be able to audit data controllers against the requirements of Act 843. Since the audit is a means of validating data controllers’ compliance to Act 843, this collaboration will help improve data protection in state institutions. The Bad Based on personal experience and that of others, the commission sometimes does not respond to phone calls, and with email communication, the response is sometimes unduly delayed or not received at all. Since these media help in making enquiries, making complaints, and reporting data breaches to the commission, a communication gap will not help in containing data breaches and addressing concerns of stakeholders, especially data subjects. In this era of digitization, the commission should not always expect individuals to visit its office for enquiries, report incidents, or lodge complaints. There is only one organization that has been accredited by the commission to conduct the certified data protection practitioner training for DPS. Such a monopoly does not encourage competition and continuity of the training. Due to this, the service provider may not be motivated to provide the best of service. Also, the training will be adversely impacted if the service provider lacks training resources or goes out of business. The commission however disclosed in its media briefing on 26th January 2022, of its intention to accredit additional organizations to provide

the training. The commission does not require an independent audit of data controllers’ compliance with the Act. It only requires data controllers to complete the “Data Protection Act Gap Analysis/Compliance Assessment Report”, which is a selfassessment document completed by data controllers during their certificate renewal, every two years. Without an independent audit, it may be difficult to ascertain the true state of data controllers’ compliance with Act 843. The commission is underresourced to perform its functions in line with section 3 of the Act. With this lack of resources, the regulator may not be able to perform its function effectively to safeguard data subjects. This issue is corroborated by the Minister of Communications and Digitalisation in October 2021, at the inauguration of the board of trustees for the commission. She mentioned staff retention as a major issue of the commission. She said several roles in the commission were yet to be regularized, which has led to the resignation of some staff. The Ugly Although the commission continues to create some form of awareness for data subjects and data controllers, this is inadequate. Awareness seems more visible only during the annual celebration of the Data Protection Day. Without the needed level of awareness, key stakeholders like data subjects and data controllers/processors will not know their rights and responsibilities in safeguarding personal data. There is some lack of transparency in the operations of the commission. In line with section 54 of Act 843, I made an official request to the commission this year, requesting for the total number of data controllers who have registered with the commission, and those in good standing. Despite the several follow-ups, my request has not been granted nor any reason given for declining it. I unfortunately do not have enough space in this article to narrate the drama that ensued from my request. It is unfortunate for the commission to shield such vital and unclassified information from data subjects. The failure of some data controllers in registering with the commission is a major setback for data protection in Ghana. Many private and government institutions have failed to register with the commission. In my estimation, out of the about 524,000 registered companies in the new company database, less than 10% of them have registered

with the commission. Although the registration does not indicate an organization’s compliance with the Act, it is one of the key steps in attaining compliance. There is a weak enforcement regime by the commission. Although it has the authority to impose sanctions/ fines on those who contravene Act 843, that authority is not seen to be exercised. There have been some incidents of public interest, which should have warranted sanctions/ fines to serve as a deterrent to others. However, the culprits were treated with kid gloves. The Way Forward To ensure compliance with Act 843, and improve the protection of personal data in Ghana, the following recommendations can be considered: 1. The commission should get enough officers to respond to phone calls and emails to aid in timely response to enquiries, incidents, and complaints from stakeholders. 2. Other organizations should be given the opportunity to be accredited to conduct the certified data protection practitioner training. 3. The commission should require data controllers to undergo annual independent audits of their compliance with Act 843 and make the reports available to the commission. 4. Individuals, the state, private and international organizations should support the commission with the needed resources to perform its functions. 5. The commission should devise more effective and innovative ways of creating public awareness on data protection/ privacy. 6. As transparency is a key tenet of good corporate governance, the commission ought to be very transparent to its stakeholders. 7. To protect data subjects and avoid penalties, organizations should register with the commission. 8. The commission should ensure that entities who contravene the Act are sanctioned accordingly to serve as a deterrent to others. I am optimistic that, the next decade will see tremendous innovation and improvement in data protection in Ghana. SHERRIF ISSAH , Data Protection Activist and Information Security Professional | Member, IIPGH. For comments, contact author mysherrif@gmail.com | +233243835912

| MARKET FORECAST

MONDAY, FEBRAURY 28, 2022

WEEKLY MARKET FORECAST (21TH -25TH FEB, 2022) FUNDAMENTAL ANALYSIS- WILL THE RISING DOLLAR RISE END NOW? The U.S. dollar edged lower Friday, with risk sentiment boosted by the news that the U.S. and Russia were set to discuss the Ukraine crisis next week, raising hopes for a diplomatic solution. The Dollar Index, which tracks the greenback against a basket of six other currencies, traded 0.1% lower at 95.740. Russian Foreign Minister Sergei Lavrov agreed

to meet U.S. Secretary of State Antony Blinken for talks in Europe next week, the State Department said Thursday night. The dollar, along with other safe-haven currencies the yen and the Swiss franc, have gained this week amid high tension on the Ukrainian border, with U.S. President Joe Biden warning on Thursday that the probability of

an invasion of Ukraine is still “very high.” News that the two principal players are set to meet next week has been greeted with a degree of optimism, although the situation remains very tense, especially after both Ukrainian government forces and Moscow-backed rebels accused each other of breaking cease-fire rules on Thursday.

TECHNICAL ANALYSIS BITCOIN(BTC/USD) LONG TERM BUY Bitcoin is expected to retest the demand zone order block and buy for a long term after the completion of the running flat correction. Sell Retest to demand zone is expected for short term then a big buy to around to 60,000 usd

GOLD(XAU/USD) BUY TO 1950.972 The yellow metal is expected to rally to 1950.972 to complete a crab pattern. Market is expected to fall after that level is reached for discounted pricing

GBPNZD(POUND-NEW ZEALAND DOLLAR) RALLY GBPNZD is set to rally to wave 5 to complete the impulse wave cycle. BUY at current market price

| MARKET FORECAST

MONDAY, FEBRAURY 28, 2022

USDNOK(DOLLAR-NORWEGIAN KRONE) USDNOK is expected to rally to complete the crab pattern at 161.8 fib extension @9.53587

USDCAD(DOLLAR-CANADIAN DOLLAR) BUY The loonie is expected to go bullish to complete the Bat Pattern at 0.886 fib retracement level@ 1.53746

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MONDAY, FEBRAURY 14, 2022

B U S I N E S S 24 .C O M .G H

NO. B24 / 310 | NEWS FOR BUSINESS LEADERS

M O N DAY, F E B R UA RY 2 8. 2 02 2

NEWS

Africa Investment Forum to hold virtual boardroom sessions 15-17 March, showcasing over $50 billion in bankable projects

n 1955, then-US Federal Reserve Chair William McChesney Martin famously said that the Fed’s job was to take away the punch bowl “just when the party was really warming up,” rather than waiting until the revelers were drunk and raucous. Decades later, in the aftermath of the 1970s inflation, it became an article of faith among monetary policymakers that they should not wait until elevated inflation showed its face before reining in an overheating economy. Today, with inflation surging, they are developing a renewed appreciation for the punch-bowl metaphor. During the decade that followed the 2008 global financial crisis, adherence to this time-honored practice arguably led some central banks to pursue unnecessarily tight monetary policies. In retrospect, they sometimes overestimated the danger of inflation. In 2021, central bankers once again “fought the last war,” but this time by underestimating the danger of inflation as economic recovery began to run into capacity constraints. By the end of 2021, the US unemployment rate had dipped below 4%, and inflation, at 7%, had hit a 40-year high. The Fed, having earlier taken the optimistic view that any inflation would be transitory, must now play catch-up. The experience of 2008-18 suggested that expansionary monetary policy could promote growth, and ultimately drive US unemployment below 4%, with few adverse effects on price stability and interest rates. This conclusion required no fundamental rethink of macroeconomic theory. Rather, it followed naturally from the proposition that the economy at that time was operating on the low, flat part of the “LM curve,” and the low, flat part of the Phillips curve (which otherwise asserts a clear tradeoff between unemployment and inflation). Consider key examples during that ten-year period when policymakers and commentators overestimated the danger that monetary easing would fuel inflation. The European Central Bank actually raised its policy interest rate in July 2008. Although it soon corrected its mistake, it then raised rates again in April-July 2011. Sweden’s Riksbank did the same, raising interest rates in 2008 (through September) and, more

egregiously, again in 2010-11. Even more obviously mistaken in 2010 was a famous letter to thenFed Chair Ben Bernanke from a group of 24 economists, academics, and fund managers, opposing the monthly asset purchases, known as quantitative easing, then underway, and warning that QE would not promote employment, but rather “risk currency debasement and inflation.” As should have been clear at a time when unemployment still exceeded 9%, there was in fact no reason to fear that monetary stimulus would lead to excessive inflation. The consensus among economists is that the Fed’s aggressive monetary easing in response to the 2007-09 recession was fully justified. Lastly, and more surprising to economists, was the 201618 period, when US GDP rose above its estimated potential and unemployment fell below 4%. In the past, this combination had signaled an overheating economy. So, it is understandable that the Fed raised interest rates from 2016 through the end of 2018. But, in the end, very little of the feared inflation materialized, suggesting in retrospect that the economy could have been allowed to “run hot” for longer. Apparently, the Phillips curve, if not dead, was supine. Now inflation is back on its feet. It turns out that when demand increases faster than supply, inflation results, just as the textbooks say. But

the Fed, not wishing to repeat its mistake of 2018, underestimated the danger in 2021. In 2020, the COVID-19 pandemic caused a sharp recession, before large US monetary and fiscal stimulus drove the subsequent rapid recovery. Inflation remained absent, the textbooks would tell us, because the negative pandemic-induced shock to demand must initially have been larger than the negative shock to supply, before the stimulus kicked in. But there is also another, less orthodox, explanation. When an emergency or disaster strikes, causing a run on, say, toilet paper, only economists think the best response is to raise prices before inventories disappear. Consumers, retailers, and toilet-paper manufacturers perceive this viscerally as “price-gouging” and express moral disapproval, so prices remain unchanged. Later, when emergency conditions ease, manufacturers and retailers can raise their prices without attracting the same opprobrium, especially when costs are rising. Despite well-known shortages in 2020, the price of toilet paper did not rise until 2021. If there is any truth to this hypothesis, then the recent 7% US inflation may have included some “catch-up” by firms. In that case, inflation could well moderate during the coming year. In any case, the Fed should now take away the punch bowl. Rising inflation is not the only evidence that

the US economy is overheating. GDP growth has been rapid, and the labor market is tight. The Fed has almost ended QE, which hugely expanded its balance sheet. But removing the punch bowl means also raising interest rates, as the Fed is expected to start doing in March, and gradually offloading the unconventional assets, particularly mortgage-backed securities, that the Fed has accumulated on its balance sheet. The Bank of England has already begun to sell off some of the bonds it holds, including corporate debt. Meanwhile, the ECB may still be fighting the last war. Unlike the Fed and the BOE, it has not yet begun to taper its own QE policy, let alone raise its interest rate, which is still -0.5%. The ECB may be trying to avoid repeating its mistakes of 200811, when it failed to sustain stimulus in the wake of the global financial crisis. (Admittedly, growth has not been as strong in Europe as in the United States.) The tendency to fight the last war stems from human nature. Recent events are most salient in shaping people’s perceptions of how the world works. Central bankers can justify focusing more on these developments by pointing to rapid and fundamental changes in technology and society. But, as they are now realizing, a longer-term historical perspective offers wisdom derived from a wider variety of circumstances.

Published by Business24 Ltd. Nii Asoyii Street, Mempeasem. East Legon-Accra, Ghana. Tel: 030 296 5297 | 030 296 5315. Editor: Benson Afful editor@business24.com.gh. +233 545 516 133.