W E D N E SDAY, J ULY 1 3, 202 2
BUSINESS24.COM.G H
NEWS FOR B U SINESS LEA DERS
Time to explore horticulture for wealth and jobs, says Mrs. Trebarh | BY PATRICK PAINTSIL
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Parliament’s Finance Committee meets IMF officials | BY EUGENE DAVIS
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The energy crisis will deepen
GRIDCo conducts Right of Way demolishing exercises in parts of Accra
| BY DANIEL YERGIN
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THEBUSINESS24ONLINE.COM
News/Editorial
Horticulture fast becoming the new job-making machine “When the last tree dies, the last man dies” they say and truly so because flora and fauna preserve the environment and hence human life, and at a time that economies are grossly feeling the harsh outcomes of climate change, the need to preserve our environment and green resources have become even more critical. Aside the enviro-friendly outcomes, there is proven economic potential in the green economy, specifically the horticultural value chain. Recent statistics put proportions of the youth (15 to 35) that are unemployed and seeking work at 34.2percent. Unemployment is therefore considered by many to be the most critical issue affecting the country. It is trite to say that with the right national and individual orientation, policies, and drive, Ghana’s rich flora and fauna resources could provide millions of jobs to the country’s teeming youth. Stratcomm Africa is leading the charge to green
Ghana for the varied purposes of beautification, wealth and job creation as well as a sustainable fight against climate change. Now in is tenth year, the annual Garden and Flower Show challenges and motivates the youth and businesses in the sector to aspire to grow and reach their full potential, in order to improve their livelihoods and impact society. This year’s theme “Growth Unleashed” preps the mind of young Ghanaians to burst forth and to grow beyond the norms to achieve a blooming environment. The global horticulture market is estimated to be valued at USD 20.77 Billion as of 2021 and is projected to reach US$40.24bn by 2026 at a compound annual growth of 10.2percent whilst global flower and ornamental plants market was valued at US$475.6m in 2020 and is expected to reach US$725.4m by the end of 2027, growing annually at 6.3percent during 2021-2027.
Time to explore horticulture for wealth and jobs, says Mrs. Trebarh
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BY PATRICK PAINTSIL Former Chie Executive Officer of the Ghana Investment Promotion Centre (GIPC) and Chief Business Strategist at Inspire Africa Consult Limited, Mrs. Mawuena Trebarh, has implored the youth of the country to explore the portentous opportunities in the horticultural industry with their abundance of ideas and innovations to create the much-needed wealth and jobs. Launching the 10th edition of the Ghana Garden and Flower Show in Accra, she called for enhanced investments into the green business to spur economic growth and to underpin the country’s climate change interventions. “The global horticulture market is estimated to be valued at USD 20.77 Billion as of 2021 and is projected to reach US$40.24bn by 2026 at a compound annual growth of 10.2percent. By 2030, young Africans are expected to make up 42 percent of the world’s youth and account for 75 percent of under age 35. I encourage our youth in Ghana to explore this option for job creation
and financial independence that Horticulture can afford you,” she noted. The global flower and ornamental plants market was valued at US$475.6m in 2020 and is expected to reach US$725.4m by the end of 2027, growing annually at 6.3percent during 2021-2027. According to Mrs. Trebarh, the huge prospects within the horticulture value chain requires of the youth to unleash their innovative ideas and solutions to grow the horticultural industry in Ghana and across the continent. She added: “Through our collective passion for horticulture, we can tap this potential to not only create jobs, but to initiate and sustain important conversations about our environment, climate change and its impact on our wellbeing as a nation.” The 2022 Ghana Garden and Flower on the theme “Growth Unleashed” will take place from 31st August to 4th September 2022, at the Efua Sutherland Children’s Park. The show is made up of
many exciting activities such as exhibitions, conferences, workshops for adults and children, fashion and music night, garden playground for children, movie night, karaoke night, and many more. The Ghana Garden and Flower Show is an annual flagship event of the Ghana Garden and Flower Movement, an initiative of Stratcomm Africa. The show has been successfully running for the past 10 years with a focus on contributing to the realization of UN Sustainable Development Goals (SDGs) through the promotion of a Greener, Cleaner, Healthier, Wealthier and a more Beautiful Ghana. In her welcome remarks, Communication Manager for Stratcomm Africa, Sharon Anim, said her outfit is passionate about employing communication as a tool for national development and livelihood enhancement. “For us at Stratcomm Africa therefore initiating and managing this movement and associated Show is our way of employing communication to mobilize society against climate change,” she indicated. According to Ms. Anim, fighting the harms of climate change is a shared responsibility adding that flower or vegetable garden cultivation is a simple way of helping to win the fight against the phenomenon.
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WEDNESDAY, JULY 13, 2022
The energy crisis will deepen By Daniel Yergin
Is today’s energy crisis as serious as similar previous ones – particularly the 1970s oil shocks? That question is being asked around the world, with consumers hit by high prices, businesses worried about energy supplies, political leaders and central bankers struggling with inflation, and countries confronting balance-of-payments pressures. So, yes, this energy crisis is as serious. In fact, today’s crisis is potentially worse. In the 1970s, only oil was involved, whereas this crisis encompasses natural gas, coal, and even the nuclear-fuel cycle. In addition to stoking inflation, today’s crisis is transforming a previously global market into one that is fragmented and more vulnerable to disruption, crimping economic growth. And, together with the geopolitical crisis arising from the war in Ukraine, it is further deepening the world’s greatpower rivalries. Today’s energy crisis did not begin with Russia’s invasion of Ukraine, but rather last year when energy demand surged as the world emerged from the COVID-19 pandemic. That is when China ran short of coal and prices shot up. The global market for liquefied natural gas (LNG) then tightened, with prices skyrocketing, and oil prices rose as well. Normally, with rising energy prices, a country like Russia would have increased its naturalgas sales to its main customer, Europe, above the minimum contracted volumes. Instead, it stuck to its contracts, even though it could have produced considerably more. At the time, it appeared that Russia was trying to force prices up. But, instead, the Kremlin may well have been preparing for war. Because Europe depended on Russia for 35-40% of its oil and
natural gas, Putin assumed that the Europeans would protest the invasion but ultimately stand aside. Fixated on his selfappointed mission of restoring what he views as Russia’s historic empire, he did not anticipate how they would respond to an unprovoked war next door. Looking ahead, five factors could make today’s energy crisis even worse. First, Putin has opened a second front in the conflict by cutting back on the contracted volumes of natural gas that Russia supplies to Europe. The goal is to prevent Europeans from storing enough supplies for next winter, and to drive prices higher, creating economic hardship and political discord. In his speech in June at the St. Petersburg International Economic Forum, Putin made his reasoning clear: “Social and economic problems worsening in Europe” will “split their societies” and “inevitably lead to populism … and a change of the elites in the short term.” As it is, Germany is now anticipating the need for gas rationing, and its minister for economic affairs, Robert Habeck, warns of a “Lehman-style contagion” (referring to the 2008 financial crisis) if Europe cannot manage today’s energy-induced economic disruptions. Second, a new or revived nuclear deal with Iran is unlikely. Thus, sanctions on the country will not be lifted – and that means Iranian oil will not be flowing into world markets anytime soon. Third, although Saudi Arabia may step up its oil production to help “stabilize” oil markets in connection with US President Joe Biden’s upcoming visit, no gusher is likely to follow, because there does not appear to be a large amount of extra oil in Saudi Arabia (or in the United Arab Emirates) that can be produced on short notice. Meanwhile, many other oil-
exporting countries cannot even return to their previous levels of production, owing to a lack of investment and maintenance since the pandemic.1 Fourth, China’s demand for oil has been significantly reduced by its “zero-COVID” lockdowns, which have sharply curtailed economic activity. But if it lifts many restrictions, a big increase in oil consumption and demand will follow. Lastly, however tight the market for crude oil, there is even more tightness in the refining sector that produces the gasoline, diesel, and jet fuel that people actually use. This sector has developed into a complex, highly interconnected worldwide system. Russia was refining products that it was shipping to Europe, while Europe was sending gasoline that it did not need to the US East Coast, and so forth. In some places, the system is going all out, with US refineries already operating at about 95% capacity. But the system overall still cannot keep up with demand. Russian refineries are functioning only partly, depriving Europe of oil products; and not enough European gasoline is reaching North America. Chinese refineries are operating at less than 70% capacity. Some four million barrels per day of refining capacity have been shut down worldwide, owing to the pandemic, new regulations, and challenging economics. Add in the risk of accidents, poor policy decisions, and a hurricane knocking out refineries on the US Gulf Coast, and the situation could get even worse.1 That said, a few countries could still boost production. Canada – the world’s fourth-largest oil producer, after the US, Saudi Arabia, and Russia – could provide extra barrels in collaboration with its major market, the US. And US shale oil production is back in
gear and could add 800,000 to one million barrels per day of new production this year – far more additional production than the rest of the world combined. Other factors that could mitigate the crisis include price changes and how consumers respond. In May, US gasoline demand was 7% less than in May 2019, before the pandemic. Some of that, however, may be the result of more people working from home. An economic slowdown could also dampen prices. S&P’s latest global purchasing managers’ index points to a weakening of economic growth, with US manufacturing activity “slipping into a decline … to a degree only exceeded twice” – at the height of the pandemic lockdown and during the 2008 financial crisis. Likewise, European growth has slowed sharply to a 16-month low. Such slowdowns could reduce demand and lower energy prices. But, of course, they also will strain the Western alliance and popular unity. The next six months will be critical, testing whether Europe can maneuver its way through the coming winter. In what Habeck called a “bitter” but “necessary” decision, Europe will need to burn more coal. In the difficult months ahead, there will need to be more informed collaboration between government and the industry that manages the energy flows on which modern economies depend. Daniel Yergin, Vice Chairman of S&P Global, is the author of The New Map: Energy, Climate, and the Clash of Nations (Penguin, 2021) and The Prize (Free Press, 2008), for which he won the Pulitzer Prize. He received the first James R. Schlesinger Medal for Energy Security from the US Department of Energy.
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WEDNESDAY, JULY 13, 2022
Parliament’s Finance Committee meets IMF officials By Eugene Davis
Parliament’s Finance Committee has held an in-camera meeting with officials of the International Monetary Fund (IMF) on Tuesday at parliament house. The meeting was at the behest of officials of IMF who were keen to engage the 25-member committee whose remit in the legislature is to examine agreements on international loans and also monitor the foreign exchange receipts and payments or transfers of the Bank of Ghana in and outside Ghana among others. Tuesday’s meeting with the IMF officials saw nearly all Finance Committee members present which was chaired by its chairman, Kwaku Kwarteng, and a Member of Parliament for Obuasi West. Even though details from the meeting were sketchy as no member of the committee nor the IMF officials were keen to speak to the press, it is however believed that both parties were able to meet a common ground. Ghana has already started the process of getting a US$2bn package from IMF to help complete the economic revival package put together by the Economic
Management Team (EMT). Government has maintained that external forces should be blamed for the sudden crushing down of an economy which, as recent as May 2021, was showing signs of upward growth and resilience. Finance minister Ken Ofori-Atta told lawmakers last month that pandemic-related expenditure amounted to 18.19 billion cedis ($2.26 billion) as of May 2022. The country received $1.23 billion in COVID-19 relief funding from the IMF and World Bank over that period, he said. Prices of imported goods rose more than domestically produced ones for the second month in a row in May, with cereals -- 20% of which Ghana imports from Russia -- having repeatedly seen some of the largest price hikes. Petroleum prices have nearly doubled yearon-year. The government is committed to successfully negotiating a programme with the IMF “in the coming months”, the Finance ministry has said in a statement. Ghana last sought IMF assistance in 2015, it received $918 million through an Extended Credit Facility
Arrangement, equal to 180% of its quota. This time, Ghana has proposed it’s own “Enhanced Domestic Programme” to the IMF, which would last a minimum of three years. It insists there be no cuts to the administration’s flagship programmes, such as campaign pledges to build hospitals and
factories in each of the country’s 216 districts and a free secondary school scheme. Ghana, a gold, cocoa and oil producer, has been struggling with the ongoing economic fallout from the COVID-19 pandemic, including rampant inflation and a depreciating currency. Analysts have said it is close to a debt crisis.
Kweku Kwarteng -Finance Committee chairman
GRIDCo conducts Right of Way demolishing exercises in parts of Accra GRIDCo has commenced demolishing exercises on its Right of Way (RoW), in parts of Accra. Affected communities include some areas behind the Fiesta Royale Hotel, Ayigbe Town, Bawaleshie, Adjringano and American House. According to a press statement issued by the Corporate Communications department and signed by Ing. Bernard Kwabena Gyan, the exercise is to rid GRIDCo’s Right of Way of encroachers, whose activities pose a threat to its transmission towers and a danger to the lives of encroachers. In October 2021, in partnership with identified District Assemblies and the Media, GRIDCo undertook a nationwide Right of Way sensitization exercise to educate encroachers of the risk associated with their activities along the Company’s Right of Way. During that sensitisation exercise, GRIDCo urged compliance with timelines provided in media publications to prevent any inconveniences. Under the Transmission Line Protection Regulations, 1967 (LI 542) as amended by Regulation No. LI 1737 of 2004, it is an offence for persons or institutions to conduct
any form of activity in relation to the lands around the location of power transmission lines and towers in Ghana. Operations including, drilling, excavation works, lorry parks, shops, garages, bars, and real estate undertaken within the RoW reservations are strictly prohibited. These activities pose danger to human life and property as transmission line faults can result in human casualties and damage to property. GRIDCo continues to collaborate
with all relevant state institutions to remove property and structures identified as illegal human activities, within its Right-of-Way to safeguard public safety and ensure the reliability of power transmission. Ghana Grid Company Limited (GRIDCo) was incorporated in December 2006 to carry out the economic dispatching and transmission of electricity from facilities of wholesale suppliers (Independent Power Producers [IPPs]) to bulk customers and distribution utilities in Ghana
and West Africa. The Company became operational on August 1, 2008, following the transfer of the Transmission System Department and its core staff from VRA to GRIDCo. It operates the National Interconnected Transmission System (NITS). GRIDCo currently transmits electricity to thirtyone (31) Bulk Customers and Distribution Utilities from eleven (11) Wholesale Suppliers, including the Volta River Authority (VRA).
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WEDNESDAY, JULY 13, 2022
Vodafone Healthline: A decade of Saving lives and promoting healthy lifestyle After touching hearts and transforming lives for the past 10-years, season 10 of the Vodafone Healthline ended with a quick review of the outstanding stories and most critical interventions that were timely in saving lives. It was heartwarming to hear eloquent Grace, episode one beneficiary, talk about how the timely intention of Vodafone Healthline saved her life and allowed her to go back to school to continue with her education. Viewers will also remember Joseph, the young two-year-old boy with a bulging stomach who could go two weeks without passing stool unless induced by a bulb syringe. His grandparents called the timely intervention of Vodafone a ‘miracle’. Another beneficiary, Jayden, was born without genitalia. After three surgeries to correct the anomaly, his teary mother expressed her heartfelt gratitude to Vodafone Healthline. Several similar stories have characterized this 10th season, putting joy in the hearts of enormous beneficiary families. ‘Massaging a baby’s head helps to shape it.’ In-house doctors debunked claims that massaging a baby’s
head with warm water helps shape it. Dr Yalley explained that some genetic factors, such as the shape of the mother or father’s heads, can contribute to a child’s head shape. Therefore, warm water massages do not affect the head shape. Dr Aba also supported the assertion that warm water does not give shape to the head but helps in smoothening the rough edges or bumps that may develop as the child grows. Adding that certain tribes, like Ashantis, do that a lot and have a term for their heads based on that philosophy. Myth Buster Segment reviewed The last episode of the season was also an opportunity to review some of the mind-boggling myths held by the public that had to be explained with in-depth health analysis and debunked when necessary. Viewers may remember engaging stories such as ‘A vagina is permanently stretched during childbirth’, ‘chocolate is an aphrodisiac’ and ‘Coke and salt can resolve a runny stomach.’ No doubt many viewers found the Myth Busters segment exciting and educative. Specialists’ practical
sensitization segments The season has hosted knowledgeable resource persons, such as Dr James Aggrey, a Trauma Surgeon from 37 Military Hospital, who demonstrated how to respond to emergency accident situations and deliver first aid efficiently without causing further harm or damage to the victim. Likewise, Dr Richard DeiAsamoa, a Specialist Psychiatrist from the Korle-Bu Teaching Hospital, gave a breakdown of how to handle depression and the urge for suicide. Dr Padi Aryetey, a gynaecologist, also came on board to educate the public on kidneys. Jewels in the kitchen, a new segment, was dominated by two keywords that are, no doubt, now part of many people’s vocabulary; anti-inflammatory and antioxidant. This week in medicine was vital in providing some historical background to how certain breakthroughs were made in the health sector and how they developed to be common in today’s modern world. From the first surgery to separate Siamese twins in Ghana, to the first penile scrotum surgery, among others. A Hot Seat Segment
In-house expert, Dr Aba Folson, was on the hot seat to provide insight into her field as a cardiologist. She stressed that the heart is the most important organ in the human body because it pumps the blood that contains all the nutrients that the rest of the body needs to function. “When your heart stops working, you are dead. So, that makes it a very important organ in the body. It is in the left chest region, not the middle, as some people point to when even they feel pains in the chest,” she said. According to her, when unhealthy lifestyles and other sicknesses like diabetes, hypertension, and high sugar level, among others, set in, the function of the heart is affected, which leads to heart attack and heart failure. She named a drug called aspirin as crucial in managing heart issues. However, because of its side effects, it is usually recommended when things are extreme, hence she admonished viewers to desist from prescribing it for themselves.
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WEDNESDAY, JULY 13, 2022
Sustineri Attorneys PRUC marks first anniversary Sustineri Attorneys PRUC, a corporate law firm that focuses on transactions, disputes and tax, working closely with start-ups and fintechs, has unveiled a series of activities and projects to mark its first year in operation. The fast-growing law firm, which is led by Richard Nunekpeku, a lawyer and entrepreneur with an impressive resume in law and business, currently has a staff strength of five lawyers with a combined legal, professional, and entrepreneurial experience spanning 30 years. As part of activities to mark the anniversary, the firm plans to organise a webinar to educate and support start-ups on leveraging technology and law to enhance their competitiveness, drive investments and grow. ‘Laws for Entrepreneurs’ Over the year, the firm has leveraged its signature capacity building programme dubbed ‘Laws for Entrepreneurs’ which seeks to build capacity for business founders and managers on how the law affects their business activities and how they can leverage same for their commercial successes. “We have leveraged this initiative, in partnership with our development partners, to build capacity for over 100 young founders and managers across the country within our first year of operation. We intend to expand this initiative, in close collaboration with our partners, to cover at least 1,000 young business founders and managers, especially those in the financial technology sector’. ‘The Bridge’ Since its establishment, Sustineri Attorneys has also introduced a talent development initiative called ‘the Bridge’ which allows law students at the first degree and professional levels to among other things experience law in action, acquire news skills, gain exposure, build networks, and validate one’s professional interest. Mr. Nunekpeku, in a remark to celebrate the 1st anniversary noted
that as a proactive and specialised corporate & commercial law firm with proven entrepreneurial and business management expertise, Sustineri Attorneys pride itself in its problem-solving skills and considers every client’s case as an opportunity to exceed expectations and build lasting mutual relationships. “We adopt a common-sense and practical approach in dealing with every client. We operate an open-door policy and run a 24-hour service. We encourage our clients to reach out to us at all times and on every issue. Our goal is to help Start-ups, Small and Medium-sized Businesses (SSMBs) to become 100percent regulatory compliant, commercially sound, and viable and to promote their competitiveness for sustained operations and investments. “Our approach to service delivery involves working with clients to develop innovative legal solutions that respond to their immediate needs and provide for future business risk(s). As our name implies, our number one priority is to look for ways that promote the sustainability of our clients’ businesses,” he said. He added that the firm’s vision is to be the go-to business law firm in Ghana, providing innovative legal services, tailored uniquely to exceed clients’ expectation and a mission to build a team of high motivated, specialised and ethically committed lawyers, leveraging shared values to advance the commercial and corporate interests of clients. ‘The START column’ Mr. Nunekpeku also pens a monthly column in the Business and Financial Times (B&FT), Ghana’s leading business information service provider. Under the title ‘The START column’, Mr. Nunekpeku offers a clear understanding and appreciation of the intersection of law and business which are critical for any effective, efficient and sustainable operation of a company/business -as there is an unending list of regulatory implications on businesses, their
managers and owners. The column offers readers an ordinary, simple and practical explanation of complex and relevant general & specific business-related laws (regulations) in the most businessfriendly write up format. So far, the column has published consistently for more than two years and always seeks to assess issues pertaining to
start-up and the entrepreneurial ecosystem in Ghana; establish signposts for transactional pitfalls for businesses; discuss advisory guides for business decision-making; demonstrate the usefulness of regulatory compliance for small and medium-sized businesses; and highlight the training & capacity building needs of businesses.
Richard Nunekpeku
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WEDNESDAY, JULY 13, 2022
President Akufo-Addo speaks on ongoing global economic turmoil President Akufo-Addo in his capacity as the African Union Champion of Financial Institutions addressed the Boma of Africa at the invitation of the African Union and AfroChampions, on the ongoing global economic turmoil. He strongly urged the assembled leaders to prioritise and focus on collective actions to strengthen Africa’s influence in the global economic order. He expressed concern that smaller economies, many of them in Africa, often suffer the harshest consequences during global downturns though they contribute the least to the causes of these upheavals. The international instruments for resolving these crises lack input from smaller economies.
Africa, therefore, needs to invest more in its own instruments for
financial crisis management and speed up the emergence of a
continental lender of last resort. But even a whole continent cannot alone withstand the full onslaught of a global economic nosedive. Global cooperation will remain at the base of any strategy for addressing crises of such nature. Hence President Akufo-Addo’s call for Africa to work together on a unified voice and approach to influencing the decisions taken in continental forums on crisis resolution. In that same spirit of collective action at the continental level, Ghana has been a strong supporter of African Union regional solutions such as the common African Vaccine Passport and the AfCFTA Digital Corridor and its ProPer subsidiary platform.
Ghana ready for maiden Expo in UK
The maiden edition of the Expo Ghana will take place on July 14 at the Canary Riverside Plaza Hotel in London, United Kingdom (UK). The expo which is an initiative modelled on the Ghana Exim Bank Tuesday Market aimed at creating awareness for Made-InGhana products and harnessing Small and Medium Enterprises (SMEs) potential for exports. The Expo Ghana is part of the Destination Ghana Campaign and Ghana Party in the Park, the biggest Ghanaian festival in the UK, which comes off on July 16.
Speaking ahead of the expo, Mr Dennis Tawiah, the Chief Executive Officer of Akwaaba UK, organisers of the expo, said the one-day event would foster business relationships between Ghanaian businesses and the UK market. “The expo will showcase Ghana-made products to the UK audience with the aim of promoting its patronage and also creating business relationships between UK and Ghana-based entrepreneurs. “It will provide an engaging
platform for promoting greater cultural diversity in the UK, as well as raising the profile of Ghana,” he said in an interview. There would be seminars held where industry experts would share best practices, offer their services, and other expertise in helping Ghana-based SME with getting their products into the UK mainstream market. Participating exhibitors will be given the opportunity to exhibit their products at Ghana Party in the Park, taking place at Cockfosters, London on Saturday,
July 16th, 2022. Partners of the expo are the Ghana High Commission to the UK & Republic of Ireland, British High Commission to Ghana, Department for International Trade, UK-Ghana Chamber of Commerce, Ministry for Tourism, Arts & Culture, Ghana, Ghana Tourism Authority, and Access Media. Other sponsors include Exim Bank, Ghana Investment Promotion Centre, Tap Tap Send, KGL, Ghana Free Zone, among others.
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Israel eyes Ghana’s local agriculture production The State of Israel, which produces about $1.2 billion worth of agricultural inputs and technology, has expressed its readiness to partner with indigenous companies to augment Ghana’s local production. This would be done through the establishment of long-term collaborations between Israeli and Ghanaian companies, knowledge transfer and investment in the agriculture sector. The move is aimed at enhancing the abilities of Small and Mediumsized Enterprises (SMES) in Ghana to produce for the local economy and reach out to market provided by the African Continental Free Trade Area (AfCFTA). Speaking with the Ghana News Agency in Accra, Ms Ayelet Levin Karp, the outgoing Head of Trade and Economic Mission, Embassy of Israel, said that a lot had been achieved in financial technology (fintech) and cyber technology. She said this on the sidelines of a ceremony to welcome Mr Yaniv Tessel, the incoming Head of Trade and Economic Mission, Embassy of Israel, as Ms Karp ends her tenure of office.
Ms Karp noted that there were a lot of opportunities to explore other sectors of the economy through collaborations, particularly agriculture production. Other areas to enhance partnerships between Israel and Ghana included energy, mining, and health. “There’s so much more that can be done especially producing locally in
Despite the adverse effects of the COVID-19 pandemic on the Ghanaian economy, she said that: “It is actually now a good time to come to Ghana because there are new opportunities in the production of organic fertilizers, and other agriculture ventures.” Mr Edem Yevutsey, General Secretary of the Ghana-Israel Business Chamber, also said that the
Ghana. A lot of companies are now into AfCFTA, so, we’re looking at joining hands with local partners to manufacture locally for West Africa and Africa.” Ms Karp said.
Chamber would continue its work with the Embassy to enhance trade between Ghana and Israel. He reiterated the Chamber’s resolve to propel partnerships
between Ghanaian companies through business to business (B2B) meetings with Israeli companies in fintech, cybersecurity, energy, and agriculture. The incoming Head of the Trade and Economic Mission, Mr Tessel said that he was enthusiastic about the current Ghana-Israel business relations, which he described as “a foundation” for him to scale up. He pledged to work with all partners of the Mission and establish new relations to increase the number of Israel businesses working in Ghana, as well as trade between the two countries. Some partners of the Chamber, lauded Ms Karp for her consistency and drive in connecting Ghanaian businesses to Israel counterparts, and other business opportunities. They include the Intercom Programming and Manufacturing Company (IPMC), IT Consortium, Jospong Group of companies, and the Coalition of Non-Governmental Organisations (NGOs) in Water and Sanitation (CONNIWAS)/World Vision Ghana. GNA
Invest more in Africa—Akinwumi Adesina urges keen Irish business community Since joining the African Development Bank Group as its 81st shareholder in 2020, Ireland has shown steadily increasing interest in strengthening its economic ties with Africa. That mission received a strong boost last week at the 7th Africa Ireland Economic Forum in Dublin, as African Development Bank Group President Dr. Akinwumi Adesina enjoined the Irish business community to invest more in Africa. “If you are not investing in Africa, you’re not in business,” Adesina told his audience. “Foreign direct investment of Ireland in Africa was $572 million at the end of 2020 and represented only 0.05% of Ireland’s total net foreign direct,” Adesina said. “This is too low. Ireland should invest a lot more in Africa. Let’s set a target of 15% of Irish investments in Africa.” The exhortation from Africa’s premier development finance institution’s chief was matched by the Irish authorities’ publicly expressed enthusiasm about IrelandAfrica cooperation. Speaking at the forum on Thursday, Minister of Foreign Affairs and Minister of Defence Simon Coveney talked about Ireland’s deepening economic and cultural links with Africa. He noted the prospects for closer trading links with the continent, pointing out that trade between Ireland and Africa would likely reach €5 billion by 2025. Receiving the Bank Group chief on Friday, Irish President Michael D. Higgins congratulated Adesina for his work on the recent establishment of the African Pharmaceutical Technology Foundation. “Nothing is more important than that,” said
President Higgins. He spoke about his long-time interest in Africa and his optimism for its economic advancement. Discussing the looming global food crisis prompted by Russia’s war in Ukraine, President Higgins welcomed the pre-emptive steps the Bank had taken to ensure food security for the continent. Describing their meeting, Adesina said: “President Higgins so warmly received me. He has a heart and passion for Africa. He told me: ‘You are doing such an incredible job for Africa with your leadership in running the African Development Bank. I am inspired by your vision.’” Similar support for continued strong cooperation came from senior Irish officials with whom Adesina met during his visit, notably: Colm Brophy, Minister of State for Overseas Development Aid and Diaspora; John Hogan, Secretary General of the Department of Finance and Alternate Governor for Ireland at the African Development Bank Group; and Paul Ryan, Director of the department’s International Finance and Climate Division, which is responsible for managing Ireland’s shareholding in international financial institutions. Adesina thanked the Irish government for joining the African Development Bank and the African Development Fund, the Bank Group’s concessional lending arm, and he expressed appreciation for Ireland’s contribution—announced by Foreign Affairs and Defence Minister Coveney on Thursday—of €2 million to the African Development Bank for climate adaptation. In an address to the forum on
Thursday, the African Development Bank head held a packed conference hall captive as he spoke about the current African economic environment, the continent’s challenges, its many opportunities, and about the African Development Bank Group’s role as a “solutions bank,” a valued partner to its regional member countries, its international development partners, and to the international business community, whose investment he said was desirable. “You can count on the African Development Bank as a partner,” he stressed. The Bank president was also interviewed(link is external) at the Institute of International European Affairs (IIEA) by Ambassador David Donoghue, Ireland’s former Permanent Representative to the United Nations. Welcoming Adesina, he said: “Dr Adesina is often described as Africa’s Optimist-inChief and is widely praised for his visionary leadership and passion for the transformation of Africa. Since he took over as President of the African Development Bank in 2015, the Bank has achieved the highest capital increase since its establishment in 1964.” In his opening remarks, Paul Ryan said: “As well as being Africa’s Optimist-in-Chief, I’d like to say to Dr. Adesina that he is also Ireland’s closest friend in the African Development Bank and in the continent of Africa as well. He has been a fabulous partner for Ireland for the last couple of years, particularly since we joined the Bank in February of 2020. […] The response by the Bank—under the leadership of
the President—to Covid and now to the Ukrainian war, has been absolutely exemplary. A lot of future-proofing kicking has been done in relation to food security, renewable energy, economic development, and it’s exactly in line with our developmesnt objectives. We are very happy to join the bank, very pleased with the level of engagement and really pleased with the work that the Bank has been doing in the continent.” Ryan added that Adesina—“first elected President of the Bank in 2015 and unanimously re-elected for another five-year term in August of 2020”—is a bold reformer who completely transformed the agriculture sector in Nigeria as agriculture minister over four years, and that he has replicated that same success at the African Development Bank. “We are very happy with the President. Our fellow colleagues in the constituency are very happy. And more importantly, the wider membership in the continent of Africa are very happy.” Adesina spoke about the work of the Bank—in particular the High 5 Strategic Priorities that he is credited with developing for the institution— and how he saw these priorities as the fulcrum for both transforming Africa and helping to achieve the UN Sustainable Development Goals. Adesina invited officials and private sector operatives to the next edition of the Bank’s Africa Investment Forum, taking place in Abidjan in November.
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Founder of Binance, Announces Donation During Visit to West Africa July 7, 2022 – Changpeng Zhao, the founder and CEO of Binance, the world’s largest cryptocurrency and blockchain infrastructure provider, has recently visited Ivory Coast and Senegal as part of his tour to connect with Binancians across the world and collaborate with policymakers. CZ’s stay in the region involved meetings with Alassane Dramane Ouattara, President of Ivory Coast and Macky Sall, President of Senegal, amongst others. Changpeng, known more commonly by his initials “CZ”, expressed the company’s commitment to collaborating with policymakers in Africa as well as highlighting blockchain’s importance to the financial economy. “Africa is primed for
crypto adoption as blockchain provides financial accessibility not currently available to lots of Africans”, CZ said. During his visit, CZ announced Binance’s partnership with Jokkolabs, one of Africa’s first social impact hubs. Through this partnership, Binance will launch a blockchain awareness and education programme throughout communities in Francophone Africa. “Together, we will reinforce the region as a hub of blockchain innovation and entrepreneurship”, he said. The partnership will involve a monetary donation for community education workshops with an aim to increase blockchain literacy and skills. Binance aims
to build the fintech community across the Francophone Africa region, ensuring enthusiasts are empowered to build blockchain solutions and solve real-world problems. CZ’s visit comes a week after the announcement of Binance’s partnership with Senegalese Khaby Lame, the most-followed creator on TikTok. It also comes a few months after Binance’s sponsorship of AFCON, the largest international football championship in Africa, showing Binance’s commitment to driving blockchain adoption within the region. ### About Binance Binance is the world’s leading blockchain ecosystem and
cryptocurrency infrastructure provider with a financial product suite that includes the largest digital asset exchange by volume. Trusted by millions worldwide, the Binance platform is dedicated to increasing the freedom of money for users, and features an unmatched portfolio of crypto products and offerings, including: trading and finance, education, data and research, social good, investment and incubation, decentralization and infrastructure solutions, and more. For more information, visit: https://www.binance.com. Media Contacts: Binance: pr@binance.com
Binance has partnered with Jokkolabs and donated funds towards community education workshops.
CEO of Binance, Changpeng Zhao and the President of Côte d’Ivoire, Alassane Ouattara
CEO of Binance, Changpeng Zhao and the President of Senegal, Macky Sall
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Op-Ed: Becoming a Choice Brand in the Digital Age By Nana Essilfuah Boison Introduction: The fundamental task of a business is to create and keep a customer sustainably and at an acceptable return to the shareholder. Any business organisation seeking to make an impact with its products and services, needs to recognise this central truth. By this realisation, it is clear that the customer remains the single most important aspect of how businesses or organisations thrive. The overall process of developing products or services, tailoring it specifically to serve a particular need for a particular set of people or customers, form the basis of the entire brand building process in marketing. When marketers talk of the product adoption process of awareness, interest, evaluation, trial and adoption, what they are essentially referring to is how to mobilise customers around a singular idea. This process of attracting customers towards a product or service so they can patronize and do so consistently, is the foundation of branding. The digital age, exacerbated by the pandemic, has even done more to transform the way customers interact with brands and what brands must do to get ahead of the game. What is a brand? A brand is a vehicle of mobilisation. Anything that seeks to attract or mobilize people towards a grand idea of transformation qualifies as a brand. At its core, a brand seeks to create strong connections and engagements with its audience over a sustainable period of time. The world is full of brands of all kinds, across different forms because humanity was made for connections and relationships. The brand and the process of brand building are the major engines of marketing activity, which has a goal of creating sustained competitive advantage through differentiation. The brand building process considers these three stages – segmentation (grouping customers in clusters in relation to age, demographics or psychographics), targeting (choosing a customer class which is relevant for the objective of the brand) and positioning (how the brand will speak and argue out its points of differentiation) in its execution. The new age for brands We live in an age where brands have a hard time mobilizing and attracting customers. The digital age has changed everything. It has transformed how to reach customers with your products and services. It has created a new set of unique audiences that have amassed a great deal of following
on social media and are using opinions about brands more forcefully than relying on facts. Today it takes approximately 0.05 seconds for someone to form an opinion about your brand. 50% of people follow 1 to 4 brands on social media whilst it takes between 5-7 interactions for a customer to remember a brand. Averagely, a customer has more than four social media accounts at any given time. This is staggering. How does a brand stand out in such a complex and dynamic age where old prejudices have been thrown out of the window? The power of technology; its transformative tenets are changing the way we view brands. Thirty or forty years ago, brands spoke to you without a way of you speaking back or sharing your opinion. The promotion, the communications and points of difference a brand makes, were handed down to the customer to embrace and accept without an avenue to interact. Today, customers are dictating the direction of brands. They own the conversation with their large followings on social media. The conversations about brands begin online; in most cases organisations are even the last to join in the conversation and are always playing catch up. Customers can no longer be taken for granted. Marketers are faced with an arduous task of being anticipatory; results oriented and always focused on nothing but a commitment to the bespoke needs of the customer. Winning in the digital age It is important to understand that the digital age presents enormous opportunities to fortify your brand and successfully amass a following that is consistent and innovative. Brands must be consistent in their points of difference more than ever before. In an age where opinion trumps facts, where a simple rant on social media can lead to chaos and reputational damage, brands must learn to be consistent in their offerings. Brands will be ineffective if they can no longer embrace the context of their customers or speak their language. Beyond the search for profitability and meeting targets, brands must become advocates for the key issues confronting the society, environment and communities in which their customers live and work. At any point in time, the competition for attention and prominence skyrockets; brands must be willing to invest in resources and infrastructure to track, monitor and engage in the trends that are emerging on social media. The digital age thrives on technology as a platform for
performance and consistency but ultimately it is about people. The people are your customers and marketers must ensure that they do not forget the focus of their marketing activity. A great philosopher once said, “only the people make history” and for brands to have resonance, the people element cannot be eliminated. There is a plethora of data analytics and social intelligence tools available to help brands know what consumers do and say online for better listening, strategic decisions and innovation to win in the marketplace. Points for brands to ponder about: • A brand should talk less about itself and talk more about the lives of people. • A brand should love the things people love and reflect lifestyle and tastes of its people. • A brand should speak like people. Not like a brand. • A brand should get in on the conversation. Be part of the trends. • A brand should have an opinion.
• A brand should also reflect the target audience for which it plans to attract and retain, including their mistakes and imperfections. • A brand should also reflect the organisation first. A brand should be seen/felt amongst employees. • Conclusion: Brands must constantly evolve, remain sharp and relevant, not dogmatic. A brand must decide what it wants to be and maintain that integrity throughout the brand journey. Branding is a process, not an event. It is premature to say you have finished building a brand. It is an evolutionary process that is dynamic and transformative. It is a dialogue, not a monologue and marketers must always remain in touch with customers to remain top of mind. The Writer: Nana Essilfuah Boison, Director of Marketing and Corporate Relations at Absa Bank Ghana Limited
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Akufo-Addo says Africa must invest more into instruments for financial crisis management Africa must invest more in its own instruments for financial crisis management, President Akufo-Addo has said. Addressing the Boma of Africa Festival on the ongoing global economic turmoil last Sunday, he noted that the current international instruments for resolving those crises lacked input from smaller economies. Speaking in his capacity as the African Union (AU) Champion of Financial Institutions, the President expressed concern about how smaller economies, many of them in Africa, often suffered the harshest consequences during global downturns though they contributed the least to the causes of those upheavals. The Boma of Africa festival is a series of insightful convenings to drive the African integration agenda through a strategic highlevel engagement between the continental governance institutions, represented by the AU Commission, and the African private sector, represented by the AU’s strategic partner AfroChampions. The Boma was instituted in response to a decision in 2019 by the AU Heads of State that a date
in early July of every year should be set aside to mark and celebrate the effort to realise African integration. Convened at the highest level, the Boma festival seeks to move beyond mere deliberations and instead to delve deep into actions; actions that can inspire Africans in various fields such as science and technology, education and creative arts to hone our talents for our common good. Global shifts The AU Commission, in partnership with AfroChampions Initiative - a public-private partnership designed to galvanise African resources and institutions to support the emergence and success of the African private sector - hosted the Boma of Africa on the theme: “Taking stock of the Africa Century”. The theme sought to explore the global shifts and continental developments shaping Africa’s quest to become a powerful global force by 2063. Held virtually, the Boma for Africa involved the participation of heads of state, chief executive officers (CEOs) of global corporations, and other world leaders. It tackled, among others,
the launch of the AU Vaccine Passport and eHealth Backbone, the unveiling of the African Continental Free Trade Area (AfCFTA) Hub, energy transition and the AfCFTA Hackathon Prize ceremony. Collective actions President Akufo-Addo strongly urged the assembled leaders to prioritise and focus on collective actions to strengthen Africa’s influence in the global economic order. He further called for efforts to speed up the emergence of a continental lender of last resort. “Even a whole continent cannot
alone withstand the full onslaught of a global economic nosedive. Global cooperation will remain at the base of any strategy for addressing crises of such nature,” he said. President Akufo-Addo called for Africa to work together with a unified voice and approach to influencing the decisions taken at continental fora on crisis resolution. He said in that same spirit of collective action at the continental level, Ghana had been a strong supporter of AU regional solutions such as the common African Vaccine Passport.
UMB celebrates Alisa Hotel as part of 50th Anniversary celebrations The management of the Universal Merchant Bank (UMB), a number one indigenous Ghanaian financial institution, led by the Chief Executive Officer, Nana Dwemoh Benneh, paid a courtesy name at present on one of its pioneering prospects – Mr. Kwame Ofosu Bamfo (CEO of Alisa Hotels) at their plush Alisa Hotel Tema website as part of its key buyer visits to mark its 50th anniversary celebrations.
The particular go to enabled the UMB group tour the brandnew Alisa Hotel website with the management of Alisa Hotels. The multi-million-dollar challenge financed by UMB, is billed to be maybe the one 5-star resort in Tema. It is predicted that Alisa Hotel Tema will increase hospitality in Ghana’s #1 port metropolis as much as commonplace. Tema is a significant business metropolis in Ghana, with a port serving the
Burkina Faso and Mali. In his remarks throughout the particular go to, CEO of UMB, Nana Dwemoh Benneh said “This project reminds us all of our heritage and pride in building and growing indigenous Ghanaian Businesses, since 1972, by bringing a uniquely Ghanaian perspective to banking. UMB is therefore proud to have been bankers to Mr. Bamfo and his companies since 199 0, and we are proud to have arranged the financing of this ground-breaking project in Tema – which is poised to be the most famous hotel in Tema in a generation, reminiscent of the glory days of the Meridien Hotel.” Mr. Kwame Ofosu Bamfo, Chairman of Alisa Hotels in his assertion stated “UMB has been a proper associate via thick and skinny, believing {that a} Ghanaian enterprise like ours could make it. Together with UMB, now we have created 650 sustainable jobs throughout the interval of our partnership and we’re extraordinarily proud to be on the cusp of launching
this challenge, navigating it via COVID-19 and different tough patches throughout the challenge cycle. We are very proud of this achievement as this 5-star resort, the primary in Tema in a era, is a triumph for us and all Ghanaian companies. Alisa Hotels, is a completely -owned Ghanaian hospitality franchise, established in 1998. The group is poised to open maybe the plushest resort in Tema in a number of weeks, filling in a niche that trade watchers point out has existed for the reason that collapse of the well-known Meridian Hotel. The website go to was undertaken by Mr. Kwame Ofosu Bamfo, Chairman and CEO of the Alisa Group of Hotels; Mr. Kwame Ofosu Bamfo, Mr. Abankwah Yeboah, Marteykor Quaye and Stephen Mulu Nzavi from the Alisa Hotel group and Nana Dwemoh Benneh, Nii Amankra Tetteh, Philemon Okyere Danquah, Rejoice Akuffo and Edward AsafuAdjaye from UMB.
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Africa must adopt technological approach in response to global economic crisis – VP Bawumia
Vice President Dr. Mahamudu Bawumia has said the ongoing economic crisis sweeping through the world must be a wake-up call to African countries to adopt a technological approach to development, especially as the continent seeks to rebuild and rise. Addressing a high-level African Union-backed “BOMA” event, the Vice President cautioned against focusing on the shortterm symptoms of the current crisis and forgetting the structural issues that the worst-hit countries are confronted with. The Boma forum brought
together global political and business leaders to deliberate on the progress of Africa towards Agenda 2063, the AU’s timetable for transforming Africa into a global economic force. Vice President Bawumia said the twin factors influencing the global economic crisis – the COVID-19 Pandemic and the Ukraine conflict – have exposed gaps in the world’s economic and political architecture, which will affect Africa’s quest for growth if the continent does not act decisively to build technological industries that are more resilient to global economic shocks. “The challenges that have beset the global economy may have been fuelled by temporary crises such as the COVID-19 pandemic and the Ukraine conflict. But these challenges are still a wakeup call to Africa that there are deep structural gaps in the global economic and political architecture that can frustrate its rise unless serious concerted efforts are made to plug them,” Dr. Bawumia told the forum. Dr. Bawumia observed that plugging the structural gap will require the African continent to adopt the emerging data-driven, technological approaches to development, which would help create the right structure for
African businesses and SMEs and connect them from isolation, to the world of business. Dr. Bawumia noted that Ghana has chosen to take a path to economic development marked by increasing technological, especially digital, content in its development programs. Responding to Meta’s (corporate parent of Facebook) President for Global Affairs and former Deputy Prime Minister of the United Kingdom, Sir Nick Clegg, Dr. Bawumia conceded to certain ongoing challenges to optimally harness data, talent, and improved regulations to advance the course of technological advancement in Ghana and Africa. He however insisted that these matters are being given the necessary attention. “We are very mindful of these potential pitfalls and are investing in both the institutions and infrastructure that will enable us to both leapfrog our infrastructure and education system limits and rapidly advance the regulatory capabilities we need to deal with complex challenges like balancing sovereignty and efficiency, as we become a data-driven economy,” the Vice President said. While acknowledging efforts some African countries are making in adopting technology-
driven development, Dr. Bawumia also shared with the forum some specific areas Ghana has invested in, and how they are expected to boost commerce. “We have successfully developed a new identity infrastructure that will transform credit scoring for SMEs, remove the bottlenecks in e-commerce, and lay the ground for the modernization of business supportive government services,” he said. “We have totally transformed the financial technology landscape and reworked our mobile telecom industry to enable us to take advantage of the 5G revolution and the internet of things as they gather pace.” The Boma of Africa (www. africaboma.com) was organised jointly by the African Union, the AfCFTA Secretariat, the Africa CDC and AfroChampions with support from Afreximbank, Ecobank, IC Publications, the Village Foundation, BADEA, Orango and MTN. Convened at the highest level, the Boma seeks to move beyond mere deliberations and instead to delve deep into actions that can inspire Africans in various fields such as science and technology, education and creative arts to hone talents for Africa’s common good.
Africa Economic Summit Group unveils the Future of Africa Project website to develop ‘Africa by Africans for All’ idea The Africa Economic Summit Group has launched the Future of Africa Project website to enable Africans from around the world to jointly design the Africa they want to see. This project initiated by the Africa Economic Summit Group, a United Kingdom based international organisation committed to the growth and competitiveness of the African continent is a two-year long journey to harvest the finest of thoughts by Africans on the future they want for their continent. According to Dr Brian Reuben, the CEO of Africa Economic Summit Group, ‘the problems in Africa can only be solved by Africans. There is no single African who does not want Africa to succeed. And when we think about it, Africa is blessed not just by abundant natural resources but also by human resources. All around the world Africans are doing mighty things in medicine, technology, sports and just about anything you can think of. This
project is our chance to come together and design the future of our Africa as one people.’ The Future of Africa Project is designed to get Africans together to generate the ideas and frameworks required to build the new Africa with opportunity for all. The idea to develop all aspects of the African economy and deliver a high standard of living for the people. This report which will be presented to the African Union on the 25th of May 2024 will serve as a guide to individuals and organisations interested in doing business in Africa. It
will present Africa to the world from a position of strength. The report will also provide policy direction to African Governments on the pathway towards a strong, resilient and competitive Africa. These proposals will also retain the details of the people who participated in the two yearlong project, including how to contact them. This therefore will offer all the people who participate on the project a chance to work directly with the Africa Economic Summit Group, Governments of African nations, investors interested in Africa, other international and multilateral organisations etc. ‘Our people c l e a r l y understand what needs to be done to move the continent forward. But while the problem has never been the lack of ideas
but most times political will to implement ideas, the Future of Africa Project will even enable Africans to bring forth ideas on how to deal with political will’, Dr Reuben said. All Africans anywhere in the world are eligible to participate in the Future of Africa Project by logging into the project website on https://foap. africaeconomicsummit.co.uk The final report that will come out of this journey will include proposals with measures on how to achieve a better future for Africa. New businesses, business models, economic models, national and regional strategies and policies are some of the expected results of the Project. To learn more about the project and the opportunities available for collaboration please visit https:// FOAP.africaeconomicsummit. co.uk or email foap@ africaeconomicsummit.co.uk
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Emirates secures summer flight schedules Emirates expects a busy summer and is set to operate as scheduled over the peak travel season, including at its 39 European points with its London Stansted route re-starting from 1 August. With over 24,000 scheduled passenger flights to and from 129 airports around the world for July and August, Emirates has been co-ordinating with its ground handling partners at airports around the world, ensuring they are up-to-date with operational requirements and are prepared to support smooth passenger movement. Emirates has also worked closely with other stakeholders at Dubai Airport to support its flight schedule and services, provisioning additional resources to ensure efficient operations at the hub, including for transiting passengers. Those visiting Dubai or doing a summer stopover can ease through departures and arrivals with speedy biometricsenabled check-points; and utilise various convenient options for mobile, online, home, and selfcheck in. The double-decked Emirates A380 aircraft is also being deployed to serve high customer demand at over 30 cities around
its network, this includes popular European cities: Amsterdam, Dusseldorf, Hamburg, London Gatwick, London Heathrow, Rome, Paris, Madrid, Manchester, Milan, Vienna, and Zurich. Whether travelling for the holidays or to visit family and friends, customers can look forward to all of Emirates’ signature experiences. On ground, this includes complimentary Chauffeur Drive airport transfers for First and Business Class customers in nearly all cities served by Emirates. Onboard, customers in all cabins can expect freshly prepared meals inspired by the season and region, and
an unmatched selection of the latest movies, TV shows, radio, live TV, podcasts and more on the 5,000 channels of on-demand entertainment on Emirates ice. Flight updates and travel advisories: To receive the latest flight updates, customers are encouraged to download the Emirates App or update their contact details by clicking on the ‘Manage My Booking’ tab on emirates.com. Customers should also check the latest travel requirements and advisories before their journey, and plan to arrive early at check-in, allowing extra time to clear airport formalities.
Dedicated lounges: Customers flying in First and Business Class, and qualifying Emirates Skywards members can take advantage of an early check-in to refresh and relax in Emirates’ dedicated Lounges at 21 airports outside of Dubai, including recently reopened facilities in Bangkok. In Australia, Emirates Lounges in Sydney, Melbourne and Perth are scheduled to be re-opened by the end of July. For the rest of its global network, Emirates has arrangements with lounge partners in 100 other airports.
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What if it rains? Factors affecting cloud adoption By Albert Yirenchi Danquah Cloud computing is one of the most controversial, misunderstood yet ingenious technologies to have existed. Thanks to some misconceptions and myths, many are unclear on exactly what this technology is all about. I have met several people who still think physical servers hosting services and data it among the clouds – literally. Cloud computing is a general term for anything that involves delivering hosted services (including servers, storage, databases, networking, software, analytics, intelligence etc.) over the internet. These services are divided into three main categories: infrastructure as a service (IaaS), platform as a service (PaaS) and software as a service (SaaS). A cloud can be private or public. A public cloud sells services to anyone on the internet like AWS, Azure, Dropbox, Gmail etc. A private cloud on the other hand offers services either over the internet or a private internal(proprietary) network and to only select users instead of the public. A popular deployment model also is a combination of public and private clouds. This is known as the hybrid model. An organization can have a mission-critical service hosted on their internal or on-premises cloud while keeping the front end on public clouds. If you are using Microsoft Office 365 or Gmail for email, Apple cloud, Google photos/ drive, or Dropbox for storage, congratulations! You are a proud consumer of cloud computing. It is called cloud because we mostly do not know where the data sits. Even if we knew which data centre the data is hosted, we hardly know which particular server is doing us the honours. Cloud, therefore, represents that “unknown” element. Like every other commodity, large scale implementation or production makes a unit cheaper to purchase. The same applies to cloud computing. One of the benefits of this technology is the leverage on economies of scale. Economies of scale A start-up company with limited resources can access computing power almost immediately, paying just the right amount for what they use, scale up and down depending on their usage and compete with global powers without any capital investment in data centres. With cloud computing, service hosting can be multiplied across
several data centres in different geographical locations to provide true redundancy ensuring business continuity and agility. Arguably, cloud computing provides better security than on-premises hosting of services. Statistically, most of the data breaches on cloud infrastructure are mainly due to the negligence of some administrators as opposed to the compromise of the cloud infrastructure itself. Unfortunately, the same cannot be said of on-premises hosting which is often saddled with weak security and constant compromises through vulnerable systems and lagged security. With the right mix of people, technology and processes, cloud computing provides one of the best security for any infrastructure. If cloud computing is this secured, why then is there so much talk and uncertainty about its adoption? Cloud is like choosing a motorcycle over a car, the least mistake is unforgivable. Consumption of cloud services can be likened to when we eat at restaurants, we are hardly certain of the ingredients and hygienic conditions of the kitchen, but we trust the food is wholesome. Security There are genuine concerns every organisation should worry about when deciding to adopt cloud technology. Yes, the cloud provides some very generous benefits that we should take advantage of, but the risks are also real to be considered. For any organisation considering the cloud, a cloud strategy must be drawn up. Gartner has come up with a very interesting decision framework that can be used to evaluate the benefits and challenges of a cloud approach for specific application scenarios. This can be adopted to decide whether the service under consideration is cloud worthy. Their approach is to consider how high the benefits or rewards that the cloud could offer versus the potential downsides or dangers of using cloud services. The four outcomes are either to consider a private cloud, embrace a public cloud, experiment or avoid the cloud completely. I think cloud concerns are more about privacy than security. It is important to distinguish between the two, especially when discussing cloud computing. You can have solid security without privacy not the other way round. There is no privacy without security. Privacy includes the laws and regulations requiring
organisations to protect customer data while security encompasses the technical processes, technology, and policies to protect that data. So many organisations today use Microsoft’s Office 365 email suite for instance. All the organisations’ communication is hosted somewhere in the United States, United Kingdom, Australia, Greenland or perhaps the moon we don’t know for sure. If the staff of these cloud service companies access our data, we will have no idea; we only trust they have enough policies and controls to reduce this risk. If a fellow cloud tenant finds a way to exploit a vulnerability within the hosting infrastructure and access our data, we will have absolutely no idea. How true data disposal happens when an entity decides to discontinue the use of a cloud service. Whereas an on-premises hard disk can be physically destroyed, the same cannot be done with data stored on the cloud. There will be remnants of the data stored somewhere by the provider. The situation becomes even more critical when personally Identifiable Information (PII) of a country’s citizens is hosted in another jurisdiction. Countries with the bilateral agreement may quickly have a fallout. If that happens what happens to the data that sits with this other country. Now we are talking about a matter of national security. A cloud service provider can be subpoenaed to hand over data belonging to entities of the opposing country for further intelligence gathering. Imagine portions of services being rendered by critical entities are run on the cloud, hosted by a now hostile country. Assuming Ukraine hosts critical services in Russia or vice versa, I
am pretty sure these services are going to be shut down right from the start of the conflict. You find the European Union using GDPR to regulate and reduce the risk of lack of privacy irrespective of the jurisdiction the service is rendered from. The key question though is, can smaller countries or those without a strong union exert the same international power to cater for its data in the name of national security? In Ghana, for instance, we are trying to support several businesses to digitise and go global. This requires being innovative while maintaining costs at the minimum due to limited capital. Should we, therefore, use regulation to limit the kind of data that can be stored in the cloud despite the numerous benefits of cloud computing? Whether we like it or not, cloud computing is here to stay, and businesses need these innovative and breakthrough technologies to survive and scale. Should we perhaps empower entities like the National Information Technology Agency (NITA) to create Amazonlike datacentres to host data locally? This way, companies can derive the benefits of the cloud while reducing the risks affecting privacy. Should we be deliberate about which countries can host our data when we go cloud? Without such alternatives, it will be practically impossible to restrict the use of the cloud for missioncritical services or even for storing and processing personally identifiable information given that almost every service requires the collection of the same. Cloud computing is inevitable if we want to be nimble, agile, and innovative. Going cloud provides enormous benefits to organizations and it should be on the agenda of every entity. But what if it rains?
The writer is the Head, Information Security, Stanbic Bank Ghana.
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Address school feeding arrears - GNECC The Ghana National Education Campaign Coalition (GNECC) has urged the government to expedite action in settling all arrears owed to caterers so that they can resume work. Data, it said, showed that school enrolments had increased since the launch of the School Feeding initiative in 2005. “The pilot programme recorded an impressive increase in enrolment by about 14.5 per cent. At the kindergarten level, enrolment went up from about 500,000 students in 2004-2005 to more than 800,000 in 20052006, an increase of 67 per cent. “During the same period, the primary net enrolment rate increased from 59.1per cent to 68.8 per cent, while net enrolment at the junior high school level
increased from 31.6 per cent to 41.6 per cent,” a statement signed by the National Chairman of GNECC, Joseph Atsu Hmadzi, said. It said the coalition would want to emphasise unequivocally that the programme’s leadership was placing the school management and Ghanaian children in a very awkward position that had the potential to negatively impact on school enrolment. “This will defeat the main purpose of access to education which is the right of the Ghanaian child. We, therefore, encourage the caterers to cordially open their arms and dialogue with the duty bearers to address the situation. And if it will be possible, develop a payment plan for clearing the arrears owed by the government,” it said.
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WEDNESDAY, JULY 13, 2022
Ghana, crippling debt, IMF & the way forward By Dr Sodzi Sodzi-Tettey
Ghana has historically captured positive global attention for its focus on economic growth, use of natural resources, development partner relationships, and drive to continue being a key contributor to the emerging West African economy. In recent years, the country’s string of subsequent economic and financial challenges has amplified the broader discussion about the best path forward and prospects for the economy. The Centre for Social Justice (CSJ) has compiled the following Public Debt report to summarise Ghana’s current economic situation as it relates to public debt and highlight some of the themes that both current and historical data indicate are behind the challenges. In the report, CSJ also aggregates years of research and academic/professional experience to provide thoughtful recommendations consistent with its focus on growth through socioeconomic infrastructure and equitable economic prosperity. This Public Debt report uses data from the World Bank, IMF, Ghana’s Ministry of Finance, and Bank of Ghana. CSJ’s research into Ghana’s economy has been extensive. While various reports from other government ministries and sources were reviewed as part of the comprehensive research, data from the sources listed in the report are from institutions that are publicly accessible and provided the most current and consistent information. Ghana’s public debt to GDP ratio reaching levels not seen post-HIPC (since 2004) can be explained by internal and external factors. The country’s overall cost of debt service has been increasing due to the increase in nonconcessionary borrowing as well as obtaining private short-term, domestic, and Eurobond loans at higher interest rates. The acceleration of debt accumulation has generally coincided with the following: 1. A persistent fiscal deficit. 2. A saving-investment gap. 3. A deteriorating current account in addition to currency depreciation and terms of trade shock. 4. The search for higher yields by foreign investors, all of which have been exacerbated by the crystallisation of contingent liabilities arising from the energy sector bonds. 5. Additional cost from the financial sector bailouts.
6. The economic fallout from the COVID-19 pandemic. 7. Revenue mobilisation efforts lag the rapid debt accumulation in recent years. Based on the Debt Sustainability Analysis of the International Monetary Fund (IMF) and World Bank, Ghana’s is classified as a country with a high risk of debt distress. Equally concerning is how revenue mobilization efforts have significantly lagged the pace of debt accumulation in recent years. In the past five years, the country’s debt to GDP ratio has significantly increased while the revenue to GDP ratio has steadily declined. CSJ strongly believes certain measures need to be implemented soon to curtail the pace of debt accumulation and focus on the efficient management of the economy in its entirety. Meaningful steps must be taken immediately in order to begin restoring the country’s orderly access to international debt markets. CSJ does not believe the country needs to halt all borrowing. However, it does believe the current debt situation requires a renewed focus on debt sustainability and policies/ projects that can generate the economic activity necessary to not only support but curtail the existing debt. This renewed focus must include all stakeholders, including the government, our lenders, development partners, and civil societies, to rally together to devise the necessary measures needed before the situation deteriorates into a full-blown sovereign debt crisis. CSJ welcomes the government’s decision to commence formal engagements with the IMF with the view to reaching a policy program capable of restoring market confidence and helping the country Surmont current debt challenges. We call upon the government to demonstrate a thorough understanding of Ghana’s own existing debt and terms, proactively approach the IMF with a realistic programme and be willing to have a broader debt restructuring conversation with all current major creditors. The extent of engagement with the IMF could lead to further expenditure
rationalization, which could potentially reduce aggregate demand and temporarily slow economic growth. To this extent, it is our hope that every effort will be made by government to cushion the effects of any such expense rationalisation on marginalised and economically disadvantaged persons and communities in our society. This is also a good time for government to take a hard and sober look at reducing the size of government and by extension, the significant costs associated with the political bureaucracy. CSJ believes the following additional short-term and medium-to-long term strategies should be incorporated in any solution: Short-term Strategies: 1. Immediate fiscal consolidation efforts aimed at enhancing revenue mobilisation and reducing expenditures. 2. Engage creditors to initiate a process for debt reprofiling and restructuring. 3. Implement the Rationalized Convergence Criteria in the ECOWAS region, in preparation for the launch of the ECOWAS Single Currency. Mediumto Long-term Strategies: 1. Increase cooperation with development partners to enhance responsibility, transparency, and mutual accountability in lending practices, to minimize inefficiencies in borrowed funds. 2. Reform and strengthen public debt governance with an emphasis on increasing transparency and accountability in borrowing and public debt utilization decisions. 3. Expand on inclusive policy
building to promote an equitable agenda that transcends short-term changes in governance. 4. Reduce public debt proceeds allocated towards stimulating the economy through consumption. 5. Reduce the savingsinvestment gap by efficiently applying debt to finance industrial policies. focus 6. Increased on international macroeconomics and global economic cycle and the implications for the domestic economy, investment, and debt finance. 7. Increased efforts to strengthen domestic revenue mobilization through innovation. Ghana currently faces significant developmental challenges, and the current financing framework, over-reliance on high-cost debt, mostly non-concessional, is unsustainable. As a result, there is an immediate need for the country to adopt an effective financing framework to meet the current challenges. There are no easy solutions for moving the country towards a sustainable debt path. However, a new financing framework that ensures debt sustainability is necessary to put the country on the path of steady progress towards attaining the Sustainable Development Goals and boost resilience even when future economic challenges emerge. Finance & Economy Pillar Centre for Social Justice info@csjghana.org, csjghana.org 5th July 2022 Dr Sodzi Sodzi Tetteh
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| MARKET REVIEW
WEDNESDAY, JULY 13, 2022
WEEKLY MARKET REVIEW FOR WEEK ENDING - JULY 1, 2022 MACROECONOMIC INDICATORS Q3, 2021 GDP Growth
3.3%
Average GDP Growth for 2021
3.3%
2022 Projected GDP Growth
5.5%
BoG Policy Rate
19.0%
Weekly Interbank Interest Rate
20.66%
Inflation for February, 2022
27.6%
End Period Inflation Target – 2022
8.0%
Budget Deficit (% GDP) – Dec, 2021
2.6%
2022 Budget Deficit Target (%GDP)
7.4%
Public Debt (billion GH¢) – Dec, 2021
391.9%
Debt to GDP Ratio – Dec, 2021
78.0%
STOCK MARKET REVIEW The Ghana Stock Exchange strengthened for the second consecutive week on the back of gains by 2 counters. The GSE Composite Index (GSE CI) gained 38.17 points (+1.52%) to close at 2,545.48 points, reflecting year-to-date (YTD) loss of 8.74%. The GSE Financial Stocks Index (GSE FI) also gained 6.64 points (+0.31%) to close at 2,176.97 points, reflecting year-to-date (YTD) gain of 1.17%. Market capitalization inched up by 5.19% to close the week at GH¢64,841.21 million, from GH¢61,643.87 million at the close of the previous week. This reflects YTD increase of 0.54%. Trading activity recorded a total of 5,819,658 shares valued at GH¢6,556,541 changing hands, compared with 8,475,595 shares, valued at GH¢9,046,592 in the preceding week. MTN dominated both volume and value of trades for the week, accounting, for 98.89% and 78.99% of volume and value of shares traded respectively. The market ended the week with 2 advancers and 2 laggards as indicated on the table below.
THE CURRENCY MARKET The Cedi weakened against the USD for the week. It traded at GH¢7.2345/$, compared with GH¢7.2150/$ at week open, reflecting w/w and YTD depreciations of 0.27% and 16.98% respectively. This compares with YTD appreciation of 0.07% a year ago. The Cedi strengthened against the GBP for the week. It traded at GH¢8.7136/£, compared with GH¢8.8683/£ at week open, reflecting w/w appreciation and YTD depreciation of 1.78% and 6.73% respectively. This compares with YTD depreciation of 0.95% a year ago. The Cedi also strengthened against the Euro for the week. It traded at GH¢7.5218/€, compared with GH¢7.6162/€ at week open, reflecting w/w appreciation and YTD depreciation of 1.26% and 9.22% respectively. This compares with YTD appreciation of 3.43% a year ago. The Cedi meanwhile weakened against the Canadian Dollar for the week. It opened at GH¢5.5918/C$ but closed at GH¢5.6016/C$, reflecting w/w and YTD depreciations of 0.17% and 15.35% respectively. This compares with YTD depreciation of 2.97% a year ago.
WEDNESDAY, JULY 13, 2022
19
| MARKET REVIEW
BUSINESS TERM OF THE WEEK Payback Period: The term payback period refers to the amount of time it takes to recover the cost of an investment. Simply put, it is the length of time an investment reaches a breakeven point. Source: https: //www.investopedia.com/terms/p/ paybackperiod.asp
ABOUT CIDAN
COMMODITY MARKET Crude Oil declined as concerns over slowing economic growth have outweighed a further tightening of supply. Brent futures traded at US$111.63 a barrel on Friday, compared to US$113.12 at week open. This reflects a w/w loss and YTD gain of 1.32% and 43.52% respectively. Gold prices fell following a tax hike on gold imports by Indian authorities to support the rupee. Gold settled at US$1,801.50, from US$1,828.90 last week, reflecting w/w and YTD losses of 1.50 % and 1.48% respectively. Prices of Cocoa declined for the week. The commodity traded at US$2,265.00 per tonne on Friday, from US$2,441.50 last week, reflecting w/w and YTD losses of 7.23% and 10.12% respectively.
INTERNTIONAL COMMODITIES PRICES
GOVERNMENT SECURITIES MARKET Government raised a sum of GH¢827.53 million for the week across the 91-Day and 182-Day Treasury Bills. This compared with GH¢1,441.07 million raised in the previous week. The 91-Day Bill settled at 25.88% p.a from 25.64% p.a. last week whilst the 182-Day Bill settled at 26.57% p.a from 26.40% p.a. last week. The table and graph below highlight primary market yields at close of the week.
CIDAN Investments Limited is an investment and fund management company licensed by the Securities & Exchange Commission (SEC) and the National Pensions Regulatory Authority (NPRA).
RESEARCH TEAM Name: Ernest Tannor Email:etannor@cidaninvestments.com Tel:+233 (0) 20 881 8957 Name: Audrey Asiedua Wiafe Email:aaudrey@cidaninvestments.com Tel:+233 (0) 57 840 2700 Name: Moses Nana Osei-Yeboah Email:moyeboah@cidaninvestments.com Tel:+233 (0) 24 499 0069
CORPORATE INFORMATION CIDAN Investments Limited CIDAN House Plot No. 169 Block 6 Haatso, North Legon – Accra Tel: +233 (0) 26171 7001/ 26 300 3917 Fax: +233 (0)30 254 4351 Email: info@cidaninvestmens.com Website: www.cidaninvestments.com Disclaimer The contents of this report have been prepared to provide you with general information only. Information provided on and available from this report does not constitute any investment recommendation. The information contained herein has been obtained from sources that we believe to be reliable, but its accuracy and completeness are not guaranteed.
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NO. B24/317 | NEWS FOR BUSINESS LEADERS
WEDNESDAY, JULY 13, 2022
Managing corruption: Using positive influence, power, politics By Dr Enyonam Canice Kudonoo
Man becomes great exactly in the degree to which he works for the welfare of his fellow men. — Mahatma Gandhi The quest for greatness has led many to indulge in acts that promote corruption without regard for the welfare of other Ghanaians. This is because many approaches used to achieve greatness are inimical to the common good of society. As Mahatma Gandhi’s definition of greatness insinuates, what use is one’s greatness if other men perish as a result? Considering the dangerous repercussions of the increasing corruption incidents in Ghana, this article discusses positive influence, power, politics and impression management as another way to minimise the contagion. Influence tactics For people to change their negative attitudes for the better, it is imperative for them to have access to impactful information that reshapes their perception about their experiences with people, ideas, organisations, institutions and situations. According to Kinicki and Kreitner, positive influence improves people’s thought processes, understanding, interpretation and actions towards achieving positive results. Research reveals nine generic influence tactics, out of which four are selected in minimising corruption. The four possible ways this may be accomplished are 1) rationally persuade people using reason, logic or facts to do the right
thing; 2) to inspirationally appeal to people’s emotions, ideals or acceptable values; 3) to use ingratiation, where the influencer gets the other party in a good mood before discussing the proposed change in a friendly and caring manner while praising past good deeds; and 4) link request to change for good to friendship and loyalty so the corrupt individual may feel a sense of belongingness and change for the better. It is also proposed that this approach is applied to elected officials or employees during their orientation periods to minimise corruption. Social power One cannot influence change without the social power to do so. The positive usage of power yields good results. Kinicki and Kreitner defined social power as the “ability to marshal the human, informational and material resources to get something done”. Unfortunately, corruption encourages the misuse of quality human and non-human resources. Consequently, we have retrogressed significantly compared to countries that gained independence at the time we did. We shamefully refer to their progress and visit these countries to enjoy their successes without emulating their use of social power to achieve development. Ghanaians must use social power in the form of gratification to institute ethical standards along with checks and balances for national development. To minimise corruption, people must
EDITOR: BENSON AFFUL editor@business24.com.gh | +233 545 516 133.
be made aware that Ghana is for all Ghanaians and not for a select few. Leaders are meant to serve those they lead, but not to always impose decisions on them, which affirms Kurt Lewin’s assertion that “we are likely to modify our own behaviour when we participate in problem analysis and solution and likely to carry out decisions we have helped make”. The social power we wield in achieving our hearts’ desires is meant to protect and seek the common good. Also, our social power is meant for us to make an impact so posterity may build on what they inherit. Politics Politics is not completely bad. According to MerriamWebster’s dictionary, politics is a multifaceted word, which has descriptive and non-judgmental meanings relating to “the science of government” and “political principles”, but also carries a negative connotation characterised by deceitful and dishonest practices for selfish gain. Within the context of this article, attention is paid to the use of the positive politics to curb corruption. The most important approach is for leadership to use political will to ensure the resourcing of all corruptionfighting machinery. According to Derrick Brinkerhoff, political will is the “commitment of actors to undertake actions to achieve a set of objectives…and to sustain the costs of those actions over time”. Political will in action encourages transparency, efficiency, honesty
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and strength of institutions, as well as citizen participation, which goes beyond press conferences where leadership talks at the citizenry instead of with them. Actors in institutions that perform checks and balances need motivation and protection to achieve results. Impression management Asha, Schmidt and Murray explained impression management as “the process by which people attempt to control or manipulate the reactions of others to images of themselves or their ideas”. Kinicki and Kreitner expanded on this definition by stating that impression management included “how one talks, behaves and looks”. The objective of managing one’s impressions is to make others perceive you as the best around—a good, well-comported and welldressed individual who is very respectful, hardworking, humble, harmless and capable of achieving goals. Negative characteristics of impression management include but are not limited to bootlicking, good appearance and tale-telling about fellow colleagues. Just as influence, power and politics have their positive and negative sides, so does impression management. Moreover, evaluation of employment processes is required to avoid employing overambitious individuals without the requisite skills and attitude, who become the little foxes that destroy organisations.