Business24 Newspaper 4 July 2022 by Business24 Online

MON DAY, JU LY 4 , 202 2

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NEWS FOR B U SINESS LEA DERS

NEWS DESK REPORT

Govt’s IMF bailout decision a ‘tragic mistake’-TUC | STORY ON PAGE 2

Enterprise Group’s profit declined by 16 percent in 2021 | STORY ON PAGE 3

African Development Fund approves US$27.19m grant for skills development infrastructure | STORY ON PAGE 3

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News/Editorial

A green port is the way to go! State ports operator, Ghana Ports and Harbours Authority, has lined up strategic alliances and initiatives that seek to protect the environment for human, plant and aquatic life in it’s operations. Among the initiatives is a mass tree planting exercise that is intended to create a carbon sink in the port area in order to absorb the carbon emissions that emanate from direct port operations and ancillary operations. Whilst ports will have different perspectives as to what ‘sustainable’ operations truly are, broadly there are new green technologies and low and zero-carbon alternatives to fossil fuels and powerintensive terminal equipment. Globally, international maritime and shipping consortia is bringing together supply chain stakeholders to collectively reduce power

consumption and carbon emissions: The port authority has also begun the separation of plastic and paper waste for recycling while giving out wooden waste for re-use, with an initiative to embark on a reduction of waste generation as well as measures taken for waste segregation at the ports. Port activities, being industrial in nature can pose risk to the environment and that is why the move towards a green port is the sustainable ports agenda and this would be successful with the collaboration of stakeholders. The use of green of innovations in the ports could significantly play down the cost of doing business within the port community aside making the industry more sustainable and future-fit.

NEWS DESK REPORT

Govt’s IMF bailout decision a ‘tragic mistake’-TUC

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The Trades Union Congress (TUC) has described, as a ‘tragic mistake’ and ‘sad’ decision, the government’s move to seek economic support from the International Monetary Fund (IMF) to revive Ghana’s economy. The labour union in a statement said while it appreciates the challenges facing the economy, it does not believe that going under an IMF programme is the best solution. “It is now very obvious that the economy of Ghana is in a desperate situation. But we are of the firm view that handing over the management of the economy to the IMF is not the solution to our problems,” the TUC said. It was of the view that an IMF programme will bring in tight economic conditions, such as a freeze on public sector

employment as was the case for Ghana’s 16th programme with the fund, noting that despite the many bailouts, the Ghanaian economy continues to face challenges. “The hardships all these IMF programmes brought on Ghanaians were enormous and needless. What we got in return was an economy still overly dependent on production and export of raw materials and import of manufactured products. Most of our productive sectors such as mining, petroleum and telecommunications are still being controlled by foreign companies.” The Ministry of Information on Friday, July 1, 2022, announced that President Akufo-Addo had given approval for Ghana to begin engagements with the IMF for a bailout.

The TUC said it was unhappy that the government “unilaterally” agreed to seek an IMF bailout. It reminded government of its promise for a four and seven percent pay increase for 2021 and 2022 on condition that government will not declare redundancies in the public service and that government will continue to employ young people into the public service, adding that any condition from an IMF programme that will impose needless hardship on them will be prevented. “We would like government to note that the working people of Ghana will do whatever it takes to prevent the imposition of needless hardships on them and the good people of Ghana,” it said.

| NEWS

MONDAY, JULY 4, 2022

Enterprise Group’s profit declined by 16 percent in 2021 The group’s profit fell from GH¢146.7 million in 2020 to GH₵122.9 million in the year under review. The decline in profits was attributed to a 72 per cent increase in benefits and claims payments which was occasioned largely by high surrenders and early encashment from the group’s life operations. In spite of that, the group declared a dividend of GH¢0.07 per share for 2021. This represents an increase of 20 per cent over the 2020 dividend of GH¢0.06 per share. The Board Chairman of the Group, Trevor Trefgarne, announced this last Tuesday at the group’s annual general meeting (AGM) in Accra. He said the rebound of the Stock Exchange reflected in the improved overall market capitalisation of the group which added GH¢10 billion to end the year at GH₵64 billion. He said the group’s shares contributed to the growth recorded on the market with the 99 per cent growth from the GH¢1.4 per share end of 2020 to

GH¢2.79 per share at the end of 2021. “The increase of 99 per cent in share price exceeded the 24 per cent growth in total assets at the end of the year. The growth seen in our share price on the market in 2021 is welcoming, however we will continue to engage market participants so investors can be fully aware of the strengths of our businesses and better appreciate the value of Enterprise Group,” Mr Trefgarne said. The Chief Executive Officer (CEO) of the group, Keli Gadzekpor, said his outfit’s topline results in the pandemic year stood testament to the resilience of the group’s differentiated business model- a customer-centric one, well supported by a diversified distribution architecture, market leading innovation and trusted brand. “We ranked consistently as the number one in both Life and General Insurance sectors in

terms of gross premium, closing the year with a market share of 18 per cent of the total insurance industry in the country. We also maintained our positions as number one in pensions business with 20 per cent of the assets under management in Ghana,” he said. With regard to revenue, he said during the fiscal year 2021, the group grew its net income from GH¢847.7 million to GH¢1,164.1 million, representing a 37 per cent increase over 2020. He said the key drivers of the performance were a 28.78 per cent growth in insurance premium revenue from GH¢651.4 million to GH¢838.7 million, with the group’s life insurance businesses contributing 72.6 per cent, non-life

22 per cent and health insurance 5.4 per cent respectively. Mr Gadzekpor said a standout for the year was the uplift in funeral services fees that increased from GH¢10.1 million in 2020 to GH¢15.5 million, representing a 53 per cent growth. He said “pension fees grew by 29 per cent, while investment income increased by 83 per cent and rental income up by 134 per cent.” “We continue to have momentum across all our five growth levers- insurance premium, pension fees, rental income, investment income and funeral services income as we seek to diversify our revenue,” he said.

African Development Fund approves US$27.19m grant for skills development infrastructure The Board of Directors of the African Development Fund today approved a $27.19 million grant to Ghana for infrastructure for skills development and job creation for youth and women in its postCovid-19 recovery efforts. The grant will enhance higher-level skills delivery in the health system in the West African nation and create jobs for youth and women. The Post-Covid-19 Skills Development and Productivity Enhancement Project, comprising two interrelated technical components and a project management component, will be implemented by Ghana’s Ministry of Finance over five years — from 2022 to 2027. Targeted primary beneficiaries include youth and women operating small businesses and cooperatives, including people with disabilities. Overall, the project will benefit at least 24,800 people directly and 50,000 indirectly. “This grant aligns with what the Skills for Employability and Productivity in Africa (SEPA) Action Plan 2022–2025 seeks to achieve. It is a giant step in the right

direction. Under SEPA, the Bank will support African countries to invest in science, technology, engineering and mathematics, as well as technical and vocational training to improve productivity and drive innovation across the continent. It is our blueprint for equipping Africans with the skills the labour market requires,” said Martha Phiri, the Bank’s Director for Human Capital, Youth and Skills Development. The grant will support the University of Ghana to build three facilities for microbiological research and training, biotechnological research and nursing, and midwifery research and training. The capacitybuilding aspect of the project will

involve the skilling of lecturers, researchers and health workers in higher institutions of education and health-related fields at the University of Ghana. This support will help increase human resource capacity to manage current and future diseases in Ghana. The project will also enhance women’s access to credit, financial literacy and information sharing, with a focus on women-led Micro, Small and Medium-Scale Enterprise (MSMEs). In addition, the project will provide a credit facility to support women and youth significantly affected by the Covid-19 pandemic at affordable interest rates — 12% per annum. The intermediary and rural and community banks will provide the

credit facility to avoid high-default rates associated with governmentsponsored credit schemes. Rural banks will participate by ensuring loan repayments and improving the efficiency and timeliness of small-loan processing. The Bank’s Director-General of the West Africa Region, Marie Laure Akin-Olugbade, said: “The restoration of livelihoods through strengthening the capacities of MSMEs, as well as the building of infrastructure at the higher education level for health-related skills development, will be a major morale booster for women affected by Covid-19 and will set the stage for fighting diseases and future pandemics in the country.” Eyerusalem Fasika, the Bank’s Ghana Country Manager, welcomed the project, saying it will address youth unemployment and recovery for vulnerable women whose sources of livelihood were adversely affected by the pandemic. She said the project is in line with the Bank’s High 5s, or top priorities, one of which is “Improve the quality of life for the people of Africa.”

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MONDAY, JULY 4, 2022

“I’m overwhelmed by government projects in A/R” By Eugene Davis The National Coordinator of Monitoring and Evaluation Secretariat at the Office of the President, Hon. Gifty Ohene Konadu, has applauded ongoing government’s developmental projects in the Ashanti region, describing their level of progress as “overwhelming”. According to her, the number of developmental projects at various completion stages in the region beats one’s imagination contrary to the hue and cry of some indigenes of the land over neglect of the ancient Ashanti kingdom. Her comment follows a five-day working visit she is undertaking in the region to inspect and validate the level of progress of government’s projects being executed in the region. Ghanaians in recent months have been feeling the pinch of record inflation and the fallout of the Ukraine war amid cuts in government spending to avoid a full-blown debt crisis. However, government’s developmental projects across the regions remain on course. The citizenry is still demanding for more. To this end, the M&E boss is convinced that ongoing developmental projects, not only in

Hon. Gifty Ohene Konadu, National Coordinator, Monitoring & Evaluation Secretariat, Office of the President being taken through the plan of the ultramodern Kumasi Central Market

the Ashanti region, but across the length and breadth of the country, will aid in the rebound of the economy. Speaking to journalists during her tour, she said, “It is the belief of this government that all the projects are completed. The impact that it will bring to bear on the lives of the people will be massive. The President [Akufo-Addo] is committed to transforming Ghana through massive developmental projects and these are evident across the country.” Furthermore, she indicated that the government conducts thorough due diligence before embarking

on any developmental project, stressing that “the beauty about the visionary president is that before initiating a project, he makes sure he secures the funds for it. The Ashanti Region, arguably the biggest support base for the current administration, is witnessing unprecedented projects comprising the 40-year abandoned Komfo Anokye Teaching Hospital Maternity block, construction of a modernized Kumasi Central market, an upgraded Kumasi International Airport, an ultramodern Regional Hospital and an infectious disease at Sewua, construction of Military Hospital at

Afari and various road network. President Akufo-Addo who is in his second term of office promised to implement a $17 bn programme to boost growth in one of West Africa’s largest economies. The coronavirus pandemic and Russia’s invasion of Ukraine has reportedly hit the price of oil and other major commodities exports this year, resulting in further contraction in nearly 40 years for Ghana, one of Africa’s largest cocoa and gold producers. That notwithstanding, he is delivering on his promises albeit gradually, through social interventions such as the OneDistrict-One-Factory, Free SHS, One District One Ambulance, Planting for Food and Jobs. For Hon. Gifty Ohene Konadu, these interventions would not only spur the economy but “set the agenda for transformational prosperity.” The NPP administration promised to implement a $17 billion programme to boost growth in one of West Africa’s largest economies. The coronavirus pandemic hit the price of oil and cocoa exports this year, resulting in the first quarterly contraction in nearly 40 years for Ghana, one of Africa’s largest gold producers.

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| FEATURE

MONDAY, JULY 4, 2022

GHASALC hold AGM with a call on members to deepen digitization drive The Ghana Association of Savings and Loans Companies (GHASALC) has held its 12th Annual General Meeting (AGM) in Accra under the theme “Driving Financial Inclusion through Digitilization: Role of Savings and Loans Companies.” Mr. Kwame Owusu-Boateng, Board Chairman of GHASALC, stated that the association at its AGM last year met to deliberate on the theme “Looking beyond Covid-19. The role of the S&L Sector in the National Development Agenda”. At the meeting, he said members discussed how the S&L sub-sector would be able to deal with the aftershock of Covid-19 as well as take advantage of any opportunities to be better positioned to meet the needs of clients. “It is refreshing to note that the sector is gradually embracing and investing in innovative structures to improve its operations,” he added. He said the association continues to play its intermediary role to ensure that the sector as a whole remained very vibrant and discharged its mandate with excellence. He disclosed that “As of December 31, 2021, the association was made up of all the 24 savings and loans companies operating in the country, and collectively served in excess of 7.32 million customers with a total asset of about GHc5.6 billion”. He added that the sector also employed about 7,271 staff operating from its 550 business outlets across the length and breadth of the country. The sector serves MSMEs, formal and informal employees,

civil servants, small holder farmers, etc. As we contribute to the Gross Domestic Product (GDP) of the country as well as job creation and financial inclusion, he said. Mr.Owusu-Boateng indicated that the sector recognizes the positive impact of digitization on businesses in the financial space from its Covid-19 survey conducted in 2021 hence the theme for this year’s AGM. He added that the survey results brought to the fore that institutions that had invested in digital platforms recorded very little or no difficulty in serving their clients, and such companies were able to deal with problems of loan disbursements and repayments which were part of the operational activities mostly affected during the pandemic. Mrs. Elsie Addo Awadzi, Second Deputy Governor of the Bank of Ghana said, digitization is changing the way financial institutions store and analyze data, relying on cloud-based infrastructure which offers among others, cost reduction, processing speed, integrated security, improved scalability, flexibility, and improved risk management. She said: “The AGM is happening at a crucial era in the global economy as well as in our Ghanaian economy, with the fallout from covid-19 pandemic and the recent Russian-Ukraine war”. The role of the S&L industry in our economy has been significant, providing critical financial services to the MSME sector, the informal sector, and households. “At the end of the first quarter 2022, total assets of the specialized deposit-taking institutions sector

exceeded GH¢160 billion, of which the S&L sub-sector contributed 35.1%. Savings and loans companies disbursed a total of GH¢3.4 billion in net loans to provide enterprises and businesses in the first quarter of 2022 alone, she added. She reiterated that, all around the world, technology is fast disrupting traditional business models for delivering finance all round the world and is redefining services as we knew them with immense benefits and some risk too. The second deputy governor added that financial institutions that have not already designed, adopted, and implemented a digital transformation strategy are already behind the curve. The S&L sector risks becoming a dinosaur as more banks reach the informal sector and MSME sector with their innovative digital financial services. She emphasized that, “Digitalization comes with its own complexities and risks, including cyber security risks, third and fourth party /outsourcing risk, data privacy breaches, technology failure risk, increased AML/CFT risks, and consumer protection risk among others. “Needless to say, a lot is required by way of strong governance and risk management systems to help mitigate these risks as financial institutions exploit the benefits of digitization, S&Ls will therefore need to augment their capital base in order to digitize and deploy more sophisticated systems to help mitigate attendant risks,” she said. Mrs. Awadzi climaxed the AGM with the launch of the Association’s Code of Conduct and Ethics,

saying, the importance of the code of Ethics and Professional Conduct for the sub-sector, “we all saw how widespread incidence of mismanagement, fraud, noncompliance with rules and high standards of ethics contributed to the collapse of 420 financial institutions regulated by the Bank of the potential to improve confidence and trust in the savings and loans sector and help to boost its fortunes”. The GHASALC AGM saw the re-election of Mr. Kwame OwusuBoateng, CEO, Opportunity International S&L as the Chairman of the Association; Mr. Oliver Bailly-Bechet MD, Advans Ghana S&L as Vice Chairman, with Mrs. Lydia Daddy, MD, Services Integrity S&L; Mr. Arnold Parker CEO, Letshego Ghana S&L; Mr. Yusif Abubakari, MD, Jins S&L and Mr. Mohammed Aourongjeb, CEO of ASA S&L serving as board members respectively. GHASALC, the umbrella body for all savings and loans (S&L) companies which are deposittaking non-bank financial institutions, is regulated by the Bank of Ghana (BoG) under the Banks and Specialized Deposit-Taking Institutions Act, 2016 (Act 930), which was established in 2008. GHASALC serves as a mouthpiece of all savings and loans companies in Ghana. The savings and loans companies offer financial services to primarily the economically active under-banked and unbanked within the informal sector, by offering tailored products and services that meet the needs of their target population.

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MONDAY, JULY 4, 2022

AfCFTA boss tells Africa to industrialise to be competitive

The Secretary General of the African Continental Free Trade Area (AfCFTA), Wamkele Mene has called for the need for African Union member states to embrace the idea of industrialisation if they wish to remain competitive within the global trade space. According to him, the over reliance on export of the continent’s primary commodities as well as on external partners to come and invest in the continent has brought about the lack of competitiveness. “When you think about why Africa lacks competitiveness, it is because we have been fragmented leading to the continuous reliance on export of our raw materials which are processed abroad and re-exported to us, creating a value chain and employment generation for those countries,” Mr. Mene said. Speaking at the opening ceremony of the Ghana Trade Road Show organised by Afriexim

Bank and Oakwood Green Africa, an African trade finance group and the AfCFTA Secretariat in Accra on Wednesday, Mr. Mene indicated that intra-African business investment presently is less than five percent, while intraAfrica trade stood at around 17 to 18 percent. Other partners of the event were the Ghana Investments Promotion Centre (GIPC), Ghana Export Promotion Authority (GEPA), the Ghana Freezones Board as well as the GCB and the Consolidated Banks. Themed, “Supporting the Africa Trade Agenda – Ensuring the Last Mile”, the event attracted representatives from the business community, small and medium enterprises (SMEs) as well as exporters of handicraft products, financial institutions among others. The three-day event seeks to promote Afriexim mandate in Ghana by forging collaborations with the business community

and the SME sectors to increase their competitiveness under the AfCFTA agreement. The programme also sought to introduce trade finance avenues available under AfCFTA through Afriexim Bank for businesses seeking to undertake ventures to scale up intra-Africa trade. The fragmentation of rules among African Union (AU) member states, Mr. Mene said, would require the need to focus on industrialisation and its acceleration as such might mean that Africa may not have learned from the Covid-19 experience and the Ukraine situation which is still ongoing. He counselled that industrialising individually as a nation won’t serve an adequate purpose since the economies of the member states were small, and the fragmentations have not made it possible to achieve the objective of an integrated market. “This is why the AfCFTA is so critical because, regardless of how competitive you are as a nation, the potential of a single country would not make the needed impact that is why we have to leverage on this market of 1.3 billion people if we are going to succeed,” he said. He emphasised that Ghana, South Africa and some other eight African countries between 2018 and 2019 were among the world’s

fastest growing economies, an indication that the potential of the African continent to be globally competitive exists, “but again, without an integrated single market, we are not going to achieve the target of industrialisation, job creation and global and regional competitiveness. Similarly, he also said value addition has been fundamentally lacking on the continent, necessitating the need to ensure an enhancement of processing capacity. Citing the Democratic Republic of Congo and the Zambia, which he said have copper in excess as examples, Mr. Mene pointed out that whereas these two countries were the leading producers of the raw material, the lack of processing capacity has seen the two countries exporting them to Ukraine where it is processed leaving them to now import them for manufacturing. “In 2019, Africa imported $16 billion worth of pharmaceutical products making it 15 million of jobs and our competitive capacity being exported to the rest of the world, but when you look at the raw materials for the manufacturing of pharmaceutical products, they are mainly agricultural base and these are abundant on our continent,” he said.

GEA supports young entrepreneurs with GHc 880,000 under YouStart Pilot Programme The Ghana Enterprises Agency (GEA) has supported sixteen entrepreneurs and three business associations with GHc 880,000. The funds are intended to support the working capital needs of the beneficiaries and/or purchase equipment for business expansion. GEA conducted visits to the sites of each beneficiary under the pilot phase to verify their existence and details as stated in their application. Through the site visits, the Agency confirmed the amount requested by applicants and verified the expenditure items presented. YouStart Pilot The Government of Ghana’s YouStart programme was successfully piloted between the 14th to 18th of February 2022 to 85 young entrepreneurs across Ghana.

The pilot began with a 5-day training programme for selected beneficiaries at the Crystal Rose Ambassador Hotel in Kumasi. Afterwards, participants were invited to pitch their business ideas to a panel of Government delegates. The YouStart pilot provided the Ghana Enterprises Agency (GEA) and National Entrepreneurship and Innovation Programme (NEIP) with an avenue to train and evaluate the business ideas of participants as well as test the systems and procedures to be deployed ahead of the formal launch of YouStart in August, 2022. Curbing Youth Unemployment The YouStart programme is the Government’s flagship policy for reducing youth unemployment. According to data from the Ghana Statistical Service, 11.5 million people are considered

economically active. Of this number, 1.5 million people are unemployed. The Unemployment rate among the population 15 years and older was, therefore, estimated at 13.4%. According to the Finance minister, Ken Ofori-Atta, the Government plans to anchor

Ghana’s post-COVID-19 recovery on young people’s renewed hope and dynamism. The consequence of this will be the realization of a WISER (Wealthy, Inclusive, Sustainable, Empowered, and Resilient) society, with young people more confident about their place in the World.

| AGRIBUSINESS

MONDAY, JULY 4, 2022

Heads of OECD and FAO emphasise the importance of peace and transforming our agrifood systems for guaranteeing access to food for the world’s poorest The global agrifood sector faces fundamental challenges over the coming decade, particularly the need to feed an ever-increasing population in a sustainable manner, the impacts of the climate crisis and the economic consequences and disruptions to food supply linked to the war in Ukraine, according to a report released today by the Food and Agriculture Organization of the United Nations (FAO) and the Organisation for Economic Cooperation and Development (OECD). The OECD-FAO Agricultural Outlook 2022-2031 focuses on assessing the medium-term prospects for agricultural commodity markets. The findings of the report underscore the crucial role of additional public spending and private investment in production, information technology and infrastructure as well as human capital to raise agricultural productivity. Prices of agricultural products have been driven upward by a host of factors, including the recovery in demand following the outbreak of the COVID-19 pandemic and the resulting supply and trade disruptions, poor weather in key suppliers, and rising production and transportation costs, which have been further exacerbated recently by uncertainties regarding agricultural exports from Ukraine and Russia, both

key suppliers of cereals. Russia’s role in fertilizer markets has also compounded already existing concerns about fertilizer prices and near-term productivity. The report provides a shortterm assessment of how the war may affect both global agricultural markets and food security. It underlines major risks to key commodity markets: equilibrium prices for wheat could be 19% above pre-conflict levels if Ukraine fully loses its capacity to export and 34% higher if in addition Russian exports are 50% of normal amounts. A scenario simulating a severe export shortfall from Ukraine and Russia in 2022/23 and 2023/24, and assuming no global production response, suggests a further increase in the number of chronically undernourished people in the world following the COVID-19 pandemic. “Without peace in Ukraine, food security challenges facing the world will continue to worsen, especially for the world’s poorest,” OECD Secretary-General Mathias Cormann said. “An immediate end of the war would be the best outcome for people in both Russia and Ukraine and for the many households around the world that are suffering from sharp price increases driven by the war.” “These rising prices of food, fertilizer, feed and fuel, as well as tightening financial conditions

are spreading human suffering across the world,” said FAO Director-General QU Dongyu. “An estimated 19 million more people could face chronic undernourishment globally in 2023, if the reduction of global food production and food supply from major exporting countries, including Russia and Ukraine, results in lower food availability hitting worldwide.” Whilst addressing the immediate problems, the global community should not lose sight of the need to work towards achieving the 2030 Agenda and the Sustainable Development Goals (SDGs). According to the Outlook, global food consumption, which is the main use of agricultural commodities, is projected to increase by 1.4% annually over the next decade, and to be mainly driven by population growth. Most additional demand for food will continue to originate in low- and middle-income countries, while in high-income countries demand will be limited by slow population growth and a saturation in the per capita consumption of several food commodity groups. Diets in low-income countries, however, will likely remain largely based on staples and food consumption will not increase sufficiently to meet the Zero Hunger target by 2030. Over the next decade, global agricultural production is projected to increase by 1.1% per year, with the additional output to be mainly produced in middle- and low-income countries. The Outlook assumes a wider access to inputs and shows that increased productivitye n h a n c i n g investment in t e c h n o l o g y, infrastructure and training will be critical drivers of agricultural growth. However, a prolonged increase in energy and agricultural input

prices – such as fertilisers – will raise production costs and may constrain productivity and output growth in the coming years. The Outlook highlights the significant contribution of agriculture to climate change. Direct greenhouse gas (GHG) emissions from agriculture are projected to increase by 6% during the next decade, with livestock accounting for 90% of this increase. Agricultural emissions are, nonetheless, projected to grow at a lower rate than production, thanks to yield improvements and a reduction in the share of ruminant production, indicating a decline in the carbon intensity of agriculture. Greater efforts will be needed for the agricultural sector to effectively contribute to global reductions in GHG emissions, as set out in the Paris Agreement on climate change, including large-scale adoption of climatesmart production processes and technologies, especially in the livestock sector. The Outlook provides an assessment of how potentially competing objectives of the agricultural sector can be achieved. Average agricultural productivity must increase by 28% over the next decade for the world to meet the Sustainable Development Goal (SDG 2) on Zero Hunger, while simultaneously keeping agricultural emissions on track to reach the Paris Agreement targets. This is more than triple the increase in productivity recorded in the last decade. Ensuring well-functioning global trade and markets is essential for addressing both shortand medium-term challenges to food security. Globally, trade in the main agricultural commodities and processed products is projected to grow in line with production over the next decade. However, some regions are expected to export a growing share of their domestic production, while others are foreseen to import a growing share of their total consumption. This increasing interdependency between trading partners underscores the critical importance of a transparent, predictable and rules-based multilateral trading system.

| NEWS

MONDAY, JULY 4, 2022

| FEATURE

MONDAY, JULY 4, 2022

Ho’s 800 tricycle taxis: Menace or service? Alberto Mario Noretti Waiting by the roadside for a taxi to work or other places in Ho these days is often an exercise in futility as the number of taxis is reducing rapidly, while tricycle taxis have virtually taken over the roads of the municipality. There are now 800 tricycles on the roads, with only 200 of the traditional taxis left for commuters. The tricycles, popularly known as ‘Mahama Can Do’, charge GH¢2 per trip as against GH¢3 by the taxis. Many users of the tricycle taxis say aside from the fare difference; they also enjoy so much fresh air while commuting. In recent times, however, public concern has been mounting over the danger the tricycles pose on the road. Teenagers The tricycles are mostly operated by teenagers, some as young as 15, with no knowledge whatsoever of traffic regulations. Some of the operators who

usually wear untidy boxer shorts and singlets are often very rude to their passengers at the least opportunity; for instance, if they do not have a change to give to them. Other operators of the tricycles wear jeans shorts, which they pull down beneath their buttocks to reveal their squalid underwear while spotting dreadlocks. Also, the tricycles veer from one lane to the other without any consideration for other road users. Fatalities On Christmas eve last year, a tricycle which was moving from Ho towards Sokode with three commuters on board, suddenly made a U-turn and ran into an oncoming tipper truck, resulting in the death of the commuters instantly and the rider died later in the hospital. According to the Motor Transport and Traffic Unit (MTTD), there were six deaths and 24 injuries from road accidents involving the tricycles in Ho and

some nearby areas in the Volta Region, this year. In times of severe weather conditions, the wind carries the tricycles into gutters. Last year, the police said the perpetrators of crimes such as robbery and rape in the municipality used tricycle taxis for their nefarious activities. A case in point is the notorious serial rapist and robber, Prince Edu, who was finally caged for 92 years in February 2021 for his crimes. He confessed, prior to his incarceration, that he often hopped onto a tricycle taxi which had a woman on board at night and then dragged her out at knife or gunpoint into the bush before raping her and taking her money and cellular phone from her. While some argue that the tricycle taxis are offering jobs to young people, others say they are keeping them away from school. Aside from the dangers they pose on the roads, the tricycles are also creating other social

problems such as waywardness among teenagers. In a decisive move, the municipal assembly recently summoned the riders, suppliers and owners of the tricycles to a meeting and made it clear that the dangers posed on the roads by the tricycles could no longer be tolerated. The Municipal Chief Executive, Divine Richard Bosson, said a task force from the assembly was working jointly with the MTTD, Driver and Vehicle Licensing Authority and National Road Safety Authority to restore sanity on the roads. “This means, underage children, will not be allowed to operate the tricycles, likewise adults without valid licences,” the MCE said. But for now, the shaky tricycles are enjoying a field day on the roads of Ho, as many taxi owners have sold their vehicles to scrap dealers in the growing absence of passengers.

| FEATURE

MONDAY, JULY 4, 2022

YouStart brilliant for youth jobs, but…. By Enimil Ashon

By now every young person just out of school or has been jobless three-to-four years after graduation has heard of the latest effort by government to create jobs for the youth. Government has come up with a programme to support the youth with training and funding to build commercially viable businesses. It is known as the YouStart Entrepreneurship Programme under which government hopes to create one million jobs over a period of three years. The programme is open to all young Ghanaians between 18 and 40 years who are running Micro, Small and Medium Enterprises (MSMEs) or individuals with business ideas they would like to turn into a profitable venture. There are four models under YouStart. One of them is ‘YouStart Commercial’. Under it, youth entrepreneurs will be trained and given a loan of between GHc100,000.00 and GHc500,000.00 as working capital (liquidity). The loan attracts 10 per cent interest. Absolutely no collateral is required. The moratorium for working capital is up to six months and that for capital expenditure (CAPEX) is up to 12 months. The loan repayment period will be up to three years. It is coordinated by the Ghana Association of Bankers, in partnership with nine financial institutions, namely GCB Bank

PLC, Consolidated Bank Ghana (CBG), Access Bank, Absa Bank, FBN Bank, ADB, Fidelity Bank, Ecobank and Bank of Africa. The second model is the DISTRICT ENTREPRENEURSHIP PROGRAMME, to be implemented by metropolitan, municipal and district assemblies (MMDAs), coordinated by the Ghana Enterprises Agency (GEA) and the National Entrepreneurship and Innovation Programme (NEIP), with support from the National Youth Authority (NYA) and the Ghana Technical and Vocational Education and Training Service. Under this model, applicants can access either a Starter Pack Loan which gives out soft loans of up to GH¢50,000, or an Accelerate Loan under which group businesses can access loans of up to GH¢100,000, repayable over three years. The third programme is YOUSTART GRACEWORKS, which will give loans of between GH¢2,000.00 and GH¢100,000.00. It will be implemented through Faith-Based Organisations (FBOs) such as churches and mosques. To help YouStart-funded businesses to gain access to markets and establish a foothold, periodic trade fairs and networking programmes will be organised. Also, government buying power will be used to support beneficiaries through the provision of national, regional and district level procurement

opportunities. I like the thoroughness of the preparatory stages leading up to launch day (I am told the President will be launching it soon). Every major stakeholder who needs to know about it for purpose of finetuning the minutest detail has been consulted. I was privileged to sit in during the stakeholder engagement with CSOs. The resource persons were very thorough and impressive. You’d be more than impressed by what came from the mouths of the young persons heading CSOs in the country. They combine passion with knowledge. With insights gained from field experience, the young men and women subjected the programme to scrutiny and offered inputs. They loved the intervention. They have fears, however. One of them is that brilliant as YouStart looks on paper, it could potentially go the way of almost every government freebie. With the experience of GYEEDA, YEA and what-have-you, they asked: “How are we sure that another political party is not going to come to power that would have nothing to do with YouStart?” they asked. Beyond NPP-NDC political football, the CSOs were worried by the factor of an over-liberalised economy characterised by unrestrained imports. While the YouStart officials didn’t have answers to the political

problem, they were quite certain what they were doing to ensure fairness and equity. The inclusion of the banks in disbursing the loans in the YouStart Commercial model seemed to offer a glimmer of redeeming grace. For the first time in the history of Ghana, we have a government youth employment programme in which the major decisions regarding who gets what in a large part of the programme will be by politically neutral actors in the private sector, specifically banking professionals. If there is one thing the world knows about bankers, it is that you don’t play politics with a banker’s money. Who born dog! Bankers don’t know who a footsoldier or girl-friend of a politician is. As someone pointed out, “No bank will interview a loan applicant on the basis of the applicant’s political party affiliation.” If you were government, you must be worried that the most active segment of the population is not productive. In Ghana, 11.7 million youth out of the 31 million national population are unproductive. Every year, in Ghana, some 109,000 youths are produced from tertiary educational institutions who have no hope of ever landing a job. That’s a national security crisis, isn’t it?

| NEWS

MONDAY, JULY 4, 2022

US President Biden backs African Development Bank’s plan to feed Africa The United States has announced support for the African Development Bank’s initiative to significantly increase food production in Africa to avert the looming food crisis caused by the Russia-Ukraine war. The Bank Group’s $1.5 billion African Emergency Food Production Facility, approved by its Board of Directors in May, will provide 20 million smallholder farmers with climate-smart, certified wheat, maize, soy and other staple crop seeds, as well as more affordable fertilizer and extension services. This will allow Africa to rapidly produce over the next four farming seasons an additional 38 million tons of food worth $12 billion. At a summit of G7 leaders on Tuesday, U.S. President Joseph Biden and fellow G7 leaders announced a contribution of $4.5 billion to address global food security, with the United States meeting 50% of that commitment. The Biden administration announced that it will invest $760 million of its contribution to combat the effects of high food, fuel, and war-driven fertilizer prices in those countries that need this support most. The United States will also support the African Development Bank’s Africa Disaster Risk

Financing program, which helps African governments respond to severe food insecurity caused by extreme weather events like drought by facilitating access to disaster risk products such as drought or flooding insurance. The African Development Bank launched the program in 2018 to boost countries’ resilience to climate shocks and it operates in almost a dozen African countries. The President of the African Development Bank, Dr. Akinwumi Adesina said: “I am delighted about the significant announcement and contributions made by President Joe Biden and fellow G7 leaders, to tangibly support the work of the African Development Bank and to address global food security.” “The U.S. government’s multipronged response to global food security challenges, which entails support for some of the African Development Bank’s own innovative programs, is a tremendous boost to our efforts and other institutions who are working hard to support African countries at this particular time of need. We warmly and wholeheartedly embrace the support by the United States and other G7 member nations,” Adesina added. In May, the United States chaired a Global Food Security Call to

Action ministerial meeting where it launched the Roadmap for Global Food Security. Ninety-four countries endorsed the roadmap, which affirms a commitment to act with urgency, at scale, and in concert, to respond to the urgent food security and nutrition needs of millions of people in vulnerable situations around the world. Adesina was among key speakers at that meeting, where he announced that the African Development Bank would provide $1.3 billion of its own resources to the African Emergency Food Production Facility’s $1.5 billion budget. Africa relies heavily on cereal exports from Russia and Ukraine. Because of the war, the continent faces a shortage of at least 30 million metric tons of food, especially wheat, maize, and soybeans imported from both countries. However, the Bank’s African Emergency Food Production program will see a total of 38 million tons of food produced. This will include 11 million tons of wheat, 18 million tons of maize, six million tons of rice and 2.5 million tons of soybeans. The Facility will build on the Bank’s remarkable success of its Technologies for African Agricultural Transformation (TAAT) platform.

Launched in 2019, TAAT delivered heat-tolerant wheat seed varieties to 1.8 million farmers in seven countries. It also increased wheat production by 2.7 million tonnes, with a value of $840 million. The African Development Bank will provide more affordable fertilizer to smallholder farmers over the next four farming seasons, by using its convening influence with major fertilizer manufacturers, loan guarantees, provisions for “smart subsidies’ to farmers embracing digital technologies, and other financial instruments. The Facility also aims to secure African government commitments toward policy reform that creates a more welcoming investment and business environment across the continent’s food value chain. President Biden also announced $2.76 billion in additional U.S. government funding commitments to help protect the world’s most vulnerable populations and mitigate the impacts of the war in Ukraine on growing food insecurity and malnutrition. These new investments will support efforts in more than 47 countries and regional organizations, and strengthen regional plans to address increasing needs.

| COMMENT/ANALYSIS

MONDAY, JULY 4, 2022

Aid to Ukraine should not come at Africa’s expense Russia’s invasion of Ukraine has generated enormous costs. Most have been borne by brave Ukrainian citizens and the unfortunate Russian soldiers ordered to fight. But the whole world has experienced significant collateral damage: further spikes in energy costs and food prices, and a possible global recession. Nowhere has that indirect damage been greater than for those already on the brink of poverty, particularly in Africa. The food price index produced by the Food and Agriculture Organization of the United Nations hit a record high in March, and fertilizer prices also have surged. Efforts by national policymakers to improve domestic food security, such as India’s recent ban on wheat exports, have made matters worse. The war’s ripple effects threaten to damage not only near-term production but also future harvests after the fighting in Ukraine ceases. Millions more Africans could thus soon face poverty, hunger, or both. But one potential negative consequence of the conflict can and must be contained: the temptation of rich-country policymakers to redirect development assistance from Africa to Ukraine. This happened in 2014, when Russia’s annexation of Crimea diverted resources away from Africa – even though the region was on the verge of a commodity price-driven recession. That year, aid from OECD

Development Assistance Committee members to Ukraine increased by 145%, while aid to Sub-Saharan Africa dipped by more than 5% (the largest decrease in a decade), despite the economic slump in much of the region. Between 2013 and 2015, 21 of the 29 DAC countries reduced official development assistance to Sub-Saharan Africa, even though overall ODA provided by DAC countries increased by 8% in real terms during this period. Denmark, for example, increased its aid to Ukraine nearly fourfold from 2013 to 2015, but cut aid to Sub-Saharan Africa by roughly 40%. Japan, fearing that Russia’s annexation of Crimea might embolden China to assert its territorial claims in the East China Sea more forcefully, pledged more than $1.8 billion in assistance to Ukraine in 2014 and 2015 while reducing aid to SubSaharan Africa by nearly 16%. The aid money diverted from Africa came primarily from initiatives to support the environment, urbanization, disaster risk management, and government budgets, rather than from economic infrastructure projects like railways and mobile telephone lines, whose cancellation would be directly detrimental to donor economies. Today’s Russia-Ukraine war is far more damaging than the conflict in 2014. Consequently, financial assistance has poured into Ukraine. The United States has so far committed more than

$54 billion to support Ukraine in the war. Neighboring Poland has provided more than $1.6 billion worth of military support. Money has also come from nongovernment sources. A special account that the National Bank of Ukraine opened to the public to raise funds for the country’s armed forces raised $525 million within two months. People from around the world have sent millions of dollars to Ukrainian landlords by renting Airbnb accommodations that they have no intention of using. Such generosity is of course to be welcomed. But it would be unfortunate if increased international assistance to Ukraine came at the cost of defunding important initiatives in Sub-Saharan Africa. The region is entering a precarious period – and not only because of galloping food prices, rising energy costs, and slower growth in its major export markets. African countries are confronting this dire outlook with high debt levels and almost no fiscal headroom, owing to the pandemic-induced recession in 2020-21, which urgently necessitated support programs for poor households and small businesses. To be sure, Africa has an interest in the success of Ukrainian and Western efforts. To the extent that authoritarianism is gaining ground globally, beating back Russian President Vladimir Putin’s violent, anti-democratic effort to redraw boundaries in Europe

may well discourage would-be autocrats from doing the same in Africa. Shortly before Russia invaded Ukraine in late February, the Kenyan ambassador to the UN, Martin Kimani, celebrated Africa’s restraint in accepting the artificial national borders drawn by the colonial powers. “At independence, had we chosen to pursue states on the basis of ethnic, racial, or religious homogeneity, we would still be waging bloody wars these many decades later,” Kimani said. Today, defeating Russia may also strike a blow in favor of democratic values in Africa and against those who would align themselves with Putin’s authoritarianism. That said, the international community’s interest in containing the Ukraine war’s collateral damage in Africa is no less compelling. So, as governments and other donors accelerate much-needed assistance to Ukraine, they should not delay initiatives such as the Global Alliance for Food Security, the G20 Common Framework for Debt Treatments, and the COVID-19 Vaccine Global Access (COVAX) facility. Scaling back development-assistance programs for Africa will only increase poverty, exacerbate food shortages that risk pushing some communities toward starvation, and undermine democracy. Project syndicate

| FEATURE

MONDAY, JULY 4, 2022

The supply-side fight against inflation By Enimil Ashon

Central banks’ efforts to contain high and rising inflation are fueling growth headwinds and threatening to tip the global economy into recession. But the proximate cause of today’s inflationary pressures is a large, broad-based, and persistent imbalance between supply and demand. Higher interest rates will dampen demand, but supply-side measures must also play a large role in inflation-taming strategies. Over the past year or so, the rollback of pandemiccontainment policies has spurred a simultaneous surge in demand and contraction in supply. While this was to be expected, supply has proved surprisingly inelastic. In labor markets, for example, shortages have become the norm, leading to canceled flights, disrupted supply chains, restaurant closures, and challenges to health-care delivery. These shortages appear to be at least partly the result of a pandemic-driven shift in preferences. Many types of workers are seeking greater flexibility – including hybrid or work-from-home options – or otherwise improved working conditions. Health-care workers, in particular, report feeling burned out by their jobs. If this is true, the inflation picture must include an adjustment in relative labor costs. To bring markets back into balance, wage and income increases will be needed, even for jobs for which there was previously an ample supply of workers. This transition will generate

some inflationary pressure. Yes, nominal prices and wages have limited downward flexibility. But at a time of excess demand, firms generally try to pass on higher costs via price increases – and they often get away with it, at least for a while. Lingering blockages associated with the pandemic, especially in China, which remains committed to its zero-COVID policy, are also fueling inflation. But these blockages will eventually subside, as will short- to medium-term capacity constraints caused by shifts in the composition of demand (in terms of both products and geography), though some will persist for a while. Capacity – whether in ports or semiconductors – takes time to build. But today’s inflation has deeper roots. Over the past several decades, the activation of massive amounts of underutilized labor and productive capacity in emerging economies has generated deflationary pressures. With those resources having now been significantly depleted, the relative prices of many goods are set to rise. Moreover, there is a global push to diversify and, in some cases, localize demand and supply chains – a response to the increasing frequency of severe shocks and rising geopolitical tensions. A more resilient global economy is a more expensive one, and prices will reflect that. The war in Ukraine has not only accelerated this supplychain transformation, but also has

caused energy and food prices to skyrocket, further exacerbating inflation, especially in lowerincome countries. In the case of fossil fuels, a prior pattern of underinvestment in capacity at multiple points along the supply chain has compounded the problem. But there is even more to the story. More than 75% of the world’s GDP is produced in countries with aging populations. Old-age dependency ratios are rising, and in some countries, the workforce is shrinking. Productivity gains could counter the contraction of labor supply relative to demand, but after nearly two decades of falling productivity growth, such gains are not forthcoming. So, inflation is rising fast, and central banks are under pressure to take drastic action. But their only real option is to reduce demand, by raising interest rates and withdrawing liquidity. These measures have already spurred a massive repricing of assets, including currencies, and they threaten to push global growth below potential, with lowerincome economies suffering disproportionately, and to reduce investment in the energy transition. There is another way: supplyside measures. Trade and investment have long enabled supply to expand rapidly in response to growing global demand. But, for nearly two decades – and especially in the last few years – proliferating trade barriers have been adding friction to this process. Creeping

protectionism must be reversed, with US President Joe Biden removing the tariffs imposed by his predecessor, Donald Trump, and Europe accelerating the integration of its services markets. At the same time, efforts must be made to improve productivity. Digital technologies will be crucial here. While the pandemic helped to accelerate the digital transformation, many sectors – including the public sector – are lagging, and concerns about the effects of automation on employment persist. But in a supply-constrained world characterized by persistent labor shortages, productivityboosting digital technologies, together with higher wages for workers, would go a long way toward improving the balance between supply and demand. For example, artificial-intelligencebased tools can perform a wide range of functions, from screening luggage more efficiently at airports to analyzing medical imaging to detect cancers. Beyond digital technologies, regulatory regimes can be streamlined and improved, in order to reduce supply-side bottlenecks. Such an agenda must be applied to both the public and private sectors. At the international level, efforts to facilitate trade, address supply-chain rigidities, and close data gaps will be essential. Otherwise, central banks will be left to deal with inflation alone – with dire consequences for the entire global economy.

| NEWS

MONDAY, JULY 4, 2022

Some progress made but much work needed to achieve 2030 Agenda fishery-related targets, FAO Director-General says The world is seeing some positive trends on fishery-related targets under the Sustainable Development Goals, but there’s still a long way to go in tapping the sector’s potential to help feed the world, especially by making better use of aquaculture. That was the message from QU Dongyu, Director-General of the Food and Agriculture Organization of the United Nations (FAO) as he addressed an Interactive Dialogue on “Making Fisheries Sustainable and providing access for smallscale artisanal fishers to marine resources and markets” at the UN Ocean Conference here today. “Our oceans, rivers and lakes can help feed the world, but only if we use their valuable resources responsibly, sustainably and equitably,” Qu said in a keynote address at the event. The FAO Director-General underlined the vital importance of achieving SDG14 on Life Below Water. FAO, as the main global forum for fisheries and aquaculture issues, is the custodian of indicators for four SDG14 Targets, and co-custodian for another three. Qu went on to analyze some of the progress made so far on these targets, citing data from FAO’s flagship 2022 report State of World Fisheries and Aquaculture (SOFIA), which was launched earlier in the day. Target 14.4 calls for the restoration of fish stocks so that they may produce maximum

sustainable yield by 2020. The indicator for this target is the proportion of fish stocks within biologically sustainable levels. The FAO Director-General noted that this target was not achieved, with the fraction of stocks fished at sustainable levels declining by 1.2 percent from 2017 to 2019. However, if weighted by volume, 82.5 percent of marine fisheries landings are from biologically sustainable stocks - an almost 4 percent rise since the last assessment. This shows that effectively managed fisheries stocks are rebuilding, Qu said, adding: “In order to meet Target 14.4, effective management is the best conservation.” On Target 14.6, which seeks to eliminate subsidies that contribute to overfishing and Illegal, Unregulated and Unreported fisheries, Qu said that some progress was being made with the help of globally binding tools such as the 1995 UN Fish Stock Agreement; the 1995 Code of Conduct for Responsible Fisheries; and the 2009 FAO Port State Measures Agreement. FAO continues to support Members in implementing these global and regional instruments, working together with civil society, the private sector, academia and the UN wide system, Qu said. He also congratulated the World Trade Organisation for an “unprecedented agreement reached on fisheries subsidies.”

Target 14.7 aims to increase the contribution of fisheries to GDP, particularly in Small Island Developing States and Least Developed Countries. Meeting Target 14.7 calls for upgrading and enhancing existing value aquatic food chains, and initial analyses indicate this target is trending positively, Qu said. Finally, Target 14.b, is a call to provide access for smallscale artisanal fishers to marine resources and markets. This is the most crucial of all in relation to sustainable livelihoods, Qu said, adding that the target is also trending positively. More and more national frameworks recognize and protect rights for small-scale fishers, who account for 90percent of the sector’s workforce, and produce 40 percent of the world’s catch. “Building the resilience of small-scale fishers and supporting their inclusion in decision-making processes are key to ensuring long-term sustainable fisheries and healthy oceans,” the FAO Director-General said. This year’s International Year of Artisanal Fisheries and Aquaculture, offers a big opportunity to further advance Target 14.b, he added. Achieving SDG14 needs partnerships Qu said SDG14 - the leastfunded of all the SDGs - can only be achieved through strategic and innovative partnerships, commitments and financing. Moreover, to feed the world

with aquatic foods must also involve aquaculture, or the farming of fish and aquatic animals and plants, which is not directly reflected in SDG14. Beyond food, aquaculture offers new opportunities and markets to support millions of livelihoods, including women, youth and indigenous communities, he said. To address today’s challenges, the FAO Strategic Framework 2022-31 supports the urgent transformation of global agrifood systems, including aquatic food systems, for better production, better nutrition, a better environment and a better life for all, leaving no one behind, Qu noted. To deliver on this vision, FAO promotes Blue Transformation, with 3 core objectives: • Sustainable aquaculture intensification and expansion; • Effective management of all fisheries; • Upgraded value chains that ensure the social, economic and environmental viability of aquatic food systems. Despite there remaining less than 8 years to meet SDG14 and the rest of the 2030 Agenda, Qu said these three objectives were achievable. “Let us use today’s Dialogue and this important UN Conference to boost and accelerate our actions for our oceans, people, prosperity and planet,” the FAO Director-General urged.

| NEWS

MONDAY, JULY 4, 2022

Record fisheries and aquaculture production makes critical contribution to global food security Significant growth in aquaculture has driven global fisheries and aquaculture production to a record high as aquatic foods make an increasingly critical contribution to food security and nutrition in the 21st century, according to a report from the UN Food and Agriculture Organization (FAO) released today. The 2022 edition of The State of World Fisheries and Aquaculture (SOFIA) says the growth of aquaculture, particularly in Asia, lifted total production of fisheries and aquaculture to an all-time high of 214 million tonnes in 2020, comprising 178 million tonnes of aquatic animals and 36 million tonnes of algae. Production of aquatic animals in 2020 was 30 percent higher than the average in the 2000s and more than 60 percent above the average in the 1990s. Record aquaculture output of 87.5 million tonnes of aquatic animals largely drove these outcomes. As the sector continues to expand, FAO says more targeted transformative changes are needed to achieve a more sustainable, inclusive and equitable fisheries and aquaculture sector. A ‘Blue Transformation’ in how we produce, manage, trade and consume aquatic foods, is crucial if we are to achieve the UN Sustainable Development Goals. ‘’The growth of fisheries and aquaculture is vital in our efforts to end global hunger and malnutrition but further transformation is needed in the sector to address the challenges,’’

says FAO Director General, QU Dongyu. ‘’We must transform agrifood systems to ensure aquatic foods are sustainably harvested, livelihoods are safeguarded and aquatic habitats and biodiversity are protected.’’ Aquatic foods are contributing more than ever before to food security and nutrition. Global consumption of aquatic foods (excluding algae) has increased at an average annual rate of 3.0 percent since 1961, almost twice that of annual world population growth – reaching 20.2 kg per capita, more than double the consumption in the 1960s. Over 157 million tonnes – or 89 percent of aquatic animal production, were used for direct human consumption in 2020, a slightly higher volume than in 2018, despite the impact of the COVID-19 pandemic. Aquatic foods contribute about 17 percent of the animal proteins consumed in 2019, reaching 23 percent in lower-middle-income countries and more than 50 percent in parts of Asia and Africa. Asian countries were the source of 70 percent of the world’s fisheries and aquaculture production of aquatic animals in 2020, followed by countries in the Americas, Europe, Africa and Oceania. China remained the top fisheries producer, followed by Indonesia, Peru, the Russian Federation, the United States, India and Viet Nam. Aquaculture shapes the future of aquatic foods Aquaculture has grown faster than capture fisheries in the last two years and is expected

to expand further over the next decade. In 2020, animal aquaculture production reached 87.5 million tonnes, 6 percent higher than in 2018. On the other hand, capture fisheries production dropped to 90.3 million tonnes, a fall of 4.0 percent compared with the average over the previous three years. The reduction in capture fisheries production was mainly driven by the COVID-19 pandemic, which severely disrupted fishing activities, market access and sales, as well as a reduction in China’s catches and a fall in the naturallyfluctuating anchoveta catches. Growing demand for fish and other aquatic foods is rapidly changing the fisheries and aquaculture sector. Consumption is expected to increase by 15 percent to supply on average 21.4 kg per capita in 2030, driven mostly by rising incomes and urbanization, changes in post-harvest practices and distribution, as well as in dietary trends focusing on better health and nutrition. Total production of aquatic animals is expected to reach 202 million tonnes in 2030, mainly due to the continuing growth of aquaculture, projected to reach 100 million tonnes for the first time in 2027 and 106 million tonnes in 2030. The need for a Blue Transformation FAO says more needs to be done to feed the world’s growing population while enhancing the sustainability of stocks and fragile ecosystems and protecting lives and livelihoods in the long-term. According to SOFIA 2022, the sustainability of marine fishery resources remains of significant concern, with the percentage of sustainably fished stocks falling to 64.6 percent in 2019, a 1.2 percent decline from 2017. However, there are encouraging signs as sustainably fished stocks provided 82.5 percent of the total volume of 2019 landings a 3.8 percent increase since 2017. This seems to indicate that larger stocks are being managed more effectively. FAO promotes Blue Transformation, a visionary strategy to meet the twin challenges of food security and environmental sustainability while ensuring equitable outcomes and gender equality. Climate and environmentfriendly policy and practices, as well as technological innovation, are also vital for change. ‘’Blue Transformation is

an objective-driven process through which FAO Members and partners can maximize the contribution of aquatic food systems to enhance food security, nutrition and affordable healthy diets, while remaining whithin ecological boundaries,’’ says Manuel Barange, Director of FAO’s Fisheries and Aquaculture Division. Fisheries and aquaculture contribute to employment, trade and economic development. The total first sale value of fisheries and aquaculture production of aquatic animals in 2020 was estimated at $406 billion, of which $265 billion came from aquaculture production. According to the latest data, an estimated 58.5 million people were employed in the sector and of these approximately 21 percent were women. Around 600 million people are estimated to depend on fisheries and aquaculture in some way for their lives and livelihoods. Building resilience is critical for equitable and sustainable development. Key numbers from The State of World Fisheries and Aquaculture 2022 Production • Total global production of aquatic animals and algae: 214 million tonnes - Firstsale value of aquatic animal production: $406 billion • Marine capture fisheries: 78.8 million tonnes • Freshwater capture fisheries: 11.5 million tonnes • Animal aquaculture production: 87.5 million tonnes, a new high Consumption and Trade • Total amount for human consumption (excluding algae): 157 million tonnes • Value of international trade of fisheries and aquaculture products: $151 billion Employment and Fleets • Total employed in primary sector of fisheries and aquaculture: 58.5 million, 21 percent women • Region with the most fishers and fish farmers: Asia (84 percent) - Number of fishing vessels on planet: 4.1 million • Largest fleet by region: Asia (2.68 million vessels, about two thirds of the global fleet) Fish Stocks • Sustainably fished stocks : 64.6 percent (2019), 1.2 percent lower than 2017 • Sustainably fished stocks from total landings: 82.5 percent (2019), up 3.8 since 2017

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MONDAY, JULY 4, 2022

| FEATURE

MONDAY, JULY 4, 2022

Our Participation In 4th Industrial Revolution Requires Education Reforms, Shared Learnings – Dr Bawumia African countries must learn best practices from each other and the rest of the world, especially in the areas of education and skills acquisition, in order to prepare adequately for the changing dynamics of the Fourth Industrial Revolution, Vice President Mahamudu Bawumia has stated. Delivering the opening address at a World Bank-organised Ministerial Meeting on Education for West and Central Africa in Accra on Monday, June 27, 2022, Dr Bawumia said while individual countries were rolling out educational reforms, collaboration would scale up the rate of adoption of such reforms and have a greater effect on their quest to build a strong human resource base. “We will not be able to deliver change without building and sustaining political momentum in the region. In many of the region’s countries, more efforts are needed to rationalize the governance of education systems to achieve greater coherence, cooperation,

and coordination.” “Indeed, the relationship between socio-economic development and human capital is critical and Ghana’s policies on education access, quality, equity, relevance, skills acquisition and education financing reflect how Ghana is using education as a lever for human capital development and socio-economic transformation”, he pointed out. The Meeting, which brought together Ministers of Finance and Education from 22 countries representing West and Central Africa, will discuss key findings of the World Bank Africa Western and Central Education Strategy 2022-2025, framed around the strategic themes of finance and governance, tackling learning poverty and foundational skills, technical vocational education and training, and tertiary education and skills. It will also build a coalition on education and a movement for increased focus on quality education to promote human

capital in the Africa Western and Central region; and issue a call for action by Ministers of Finance and Education. Outlining an extensive list of ongoing reforms in Ghana’s education sector, from reviewing the pre-tertiary education curriculum, reform of Secondary Education focusing on access to Free Senior High school, through establishment of the Commission for Technical and Vocational Education and Training (CTVET) and TVET Service to operationalize the TVET space, to elevation of the minimum qualification for teachers from diploma to degree as well as provision of access to financing of tertiary education in Ghana through the ‘No Guarantor Policy’, Vice President Bawumia called for cross pollination of ideas on ways to make such reforms even better. “As is the case of several other countries in West and Central Africa, Ghana has introduced several key policies and reforms to strengthen education quality and

management across the education sector… Ghana’s education reform agenda can benefit from collaboration and synergy with our regional partners. That is what this conference must explore to spur up the collective growth of the continent because as Helen Keller once said, “alone we can do so little, together we can do so much.” Commending Ghana for the successes chalked so far in her education reforms, the World Bank Vice President for Western and Central Africa, Ousmane Diagana, said the Bank’s 20222025 Education Strategy was designed to meet the needs of the youth of the continent, and assured of his organisation’s continued support for, among others, reducing Learning Poverty – the share of 10-year-olds who are unable to read and understand a short text – which affects more than 80 percent of children across the region, the highest rate in the world.

| MARKET REVIEW

MONDAY, JULY 4, 2022

WEEKLY MARKET REVIEW FOR WEEK ENDING - JUNE 24, 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

20.25%

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 week on the back of gains by 2 counters. The GSE Composite Index (GSE CI) gained 11.07 points (+0.44%) to close at 2,507.31 points, reflecting year-to-date (YTD) loss of 10.11%. The GSE Financial Stocks Index (GSE FI) however lost 1.23 points (-0.06%) to close at 2,170.33 points, reflecting year-to-date (YTD) gain of 0.86%. Market capitalization inched up by 0.19% to close the week at GH¢61,643.87 million, from GH¢61,528.03 million at the close of the previous week. This reflects YTD decrease of 4.42%. Trading activity recorded a total of 8,475,595 shares valued at GH¢9,046,592.48 changing hands, compared with 29,705,115 shares, valued at GH¢25,805,228.99 in the preceding week. MTN dominated both volume and value of trades for the week, accounting, for 98.77% and 79.75% of volume and value of shares traded respectively. The market ended the week with 2 advancers and 1 laggard as indicated on the table below.

THE CURRENCY MARKET The Cedi weakened against the USD for the week. It traded at GH¢7.2150/$, compared with GH¢7.2030/$ at week open, reflecting w/w and YTD depreciations of 0.17% and 16.76% respectively. This compares with YTD appreciation of 0.10% a year ago. The Cedi also weakened against the GBP for the week. It traded at GH¢8.8683/£, compared with GH¢8.7823/£ at week open, reflecting w/w and YTD depreciation of 0.97% and 8.36% respectively. This compares with YTD depreciation of 1.62% a year ago. The Cedi again weakened against the Euro for the week. It traded at GH¢7.6162/€, compared with GH¢7.5394/€ at week open, reflecting w/w and YTD depreciation of 0.52% and 9.43% respectively. This compares with YTD appreciation of 2.78% a year ago. The Cedi further depreciated against the Canadian Dollar for the week. It opened at GH¢5.5224/C$ but closed at GH¢5.5918/C$, reflecting w/w and YTD depreciation of 1.24% and 15.20% respectively. This compares with YTD depreciation of 3.25% a year ago.

MONDAY, JULY 4, 2022

| MARKET REVIEW

BUSINESS TERM OF THE WEEK Fire Sale: A fire sale is the selling of assets at heavily discounted prices, often due to the seller’s financial distress.

ABOUT CIDAN CIDAN Investments Limited is an investment and fund management company licensed by the Securities & Exchange Commission (SEC) and the National Pensions Regulatory Authority (NPRA).

RESEARCH TEAM COMMODITY MARKET Crude Oil remained flat week-on-week amid fears of slower demand from slowing U.S. economic growth and supply concerns on the market. Brent futures traded at US$113.12 a barrel on Friday, compared to US$113.12 at week open. This reflects w/w and YTD gain of 0.00% and 45.44% respectively. Gold prices fell amid a keen watch on the Federal Reserve’s next rate move, as U.S. inflation barely moved from 40-year highs. Gold settled at US$1,828.90, from US$1,840.60 last week, reflecting w/w loss and YTD gain of 0.64% and o.02% respectively. Prices of Cocoa inched up for the week. The commodity traded at US$2,441.50 per tonne on Friday, from US$2,387.00 last week, reflecting w/w gain and YTD losses of 2.28% and 3.12% respectively.

INTERNTIONAL COMMODITIES PRICES

GOVERNMENT SECURITIES MARKET Government raised a sum of GH¢1,441.07 million for the week across the 91-Day, 182-Day and 364-DayTreasury Bills. This compared with GH¢1,504.54 million raised in the previous week. The 91-Day Bill settled at 25.64% p.a from 24.68% p.a. last week whilst the 182-Day Bill settled at 26.40% p.a from 25.98% p.a. last week. The 364-Day Treasury bill settled at 27.43%, from 26.86% at last issue. The table and graph below highlight primary market yields at close of the week.

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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MONDAY, JULY 4, 2022

Don’t blame us for rising food prices Russian Embassy to Ghanaian media Russia is not to be blamed for increasing food prices on the African continent, the Russian Embassy in Accra has said. According to the Embassy, the Ghanaian media has fallen for a ploy by the West to blame Russia for increasing food prices worldwide. In a series of tweets Thursday, the Russian Embassy accused the media of deliberately ignoring the fact that policies of the West had triggered economic challenges on the African continent since 2020. “The Ghanaian press continues to carbon-copy the Western mainstream trying to persuade local readers that the Russian special military operation in Ukraine is to blame for the increase in bread prices,” the

Russian Embassy said in a tweet. “At the same time, journalists shyly keep silent that food and energy prices began to rapidly rise already in early 2020 due to systemic miscalculations of the financial and economic policies of Western countries during the coronavirus pandemic”. Instead, the Embassy attributed the increase in food prices to systematic errors of the West in forecasting its agricultural policy, global inflation, economic sanctions on Russia and a failed rapid transition of the European and North American countries from traditional fuels to “green” energy. It added that illegitimate restrictions on Russia had also disrupted the functioning of the

usual commodity-money chains. “Sanctions against the Russian Federation have dealt a serious blow to the entire global economy, which has just begun to gradually recover from the crisis caused by the COVID-19 pandemic,” the statement said. “It was the sanctions that led to the rupture of the existing supply and logistics chains, violated the financial settlement system of our economic operators, provoked the closure of foreign ports for Russian cargo and a ban on entering Russian harbors, created threats of mass arrests of bulk carriers and refusal of their insurance. As a result, the sanctions created a situation in which the seller has a product Russian grain, the buyer has

money and the desire to purchase it, but the sanctions simply do not allow it to be done. Neither physically to transport the grain, nor financially - to pay for it. “At this point, an average reader would probably ask himself what is the purpose of all of this. The purpose is to isolate Russia. The collective West wanted to punish Russia, but it punished itself along with the rest of the world. “Everyone suffered from this. Interruptions in supplies and settlements lead to a global shortage of products, contribute to further price hikes and threaten world food security. No deals are done, activity decreases, at the same time demand increases, which make the prices to rise. That’s the reason!”.

Government urged to ratify ILO C190 to curbing harassment at workplaces The government has been urged to take concrete steps to ratify the International Labour Organisation Convention 190 (C190) and Recommendation 206 to help address violence and harassment in workplaces. This would protect workers, especially those in the informal sector, against various forms of abuse, including gender-based violence and harassment and improve the dignity, rights and freedoms of the vulnerable workers. The Young Urban Women Movement (YUWM), a youth wing of ActionAid Ghana, a NonGovernmental Organisation, Upper East Regional Chapter, made the call in a statement in Bolgatanga as part of advocacy to influence government to ratify the convention to promote decent working environment. The young women marched through the principal streets of Bolgatanga holding placards with inscriptions, Ratify ILO C190, “Violence and harassment in the world of work is real, ratify ILO C190 now!”, “stop sex for

jobs”, “protect women workers”, “violence is not part of the job”, “stop GBV at workplaces”, “let us end harassment at workplaces” among others. Ms Dorcas Zoogah, the Regional Chairperson, YUWM, who read the statement, noted that young women, particularly those working in the informal sector, continued to experience various forms of violence, harassment and human rights violation at their workplaces and the situation needed urgent attention. She said research conducted by ActionAid Ghana in 2018 revealed that about 44 per cent of young urban women working in the informal sector suffered repeated sexual oriented behaviour such as touching, rubbing or groping. The study revealed further that about 49 per cent of young women had been sexually abused while 44 per cent had been harassed more than once at their workplaces. This, Ms Zoogah explained, had been exacerbated by the economic crisis creating hardships among poor individuals and making

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some employers to take advantage of their workers or job seekers, particularly young urban women and underscored the urgent need to address the phenomenon. “We have been witnessing an unacceptable rise in violence and harassment against workers especially in the informal economy. We have also seen an alarming surge in cases of domestic violence worldwide partly due to the effect of the economic downturn,” she added. Ms Zoogah noted that apart from the 1992 Constitution and being a signatory to some International Conventions, including the United Nations Conventions on the Elimination of all forms of Discrimination against Women (CEDAW) enjoining Ghana to protect the citizenry against all abuses, there was the need for government to ratify the ILO C190 and R206 to appropriately address challenges at workplace. “ILO C190 and R206 set out clear steps that government and other social partners can take to mitigate the impact of domestic violence, including violence

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perpetuated against individuals who work at home. While the attention of the government of Ghana is imperative for saving lives and livelihoods under threat due to this unprecedented pandemic, we urge the President of Ghana to see early ratification and implementation of C190 as part and parcel of response to curb violence and harassment at workplaces,” she added. The ILO Convention 190 and Recommendation 206 are the first international labour standards adopted in 2019 that specifically recognise the right of everyone to a world of work free from violence and harassment, including gender-based violence and sexual harassment. The aim of the Convention on Violence and Harassment is to promote a general environment of zero tolerance to violence and harassment and to facilitate the prevention of such behaviour and practice. Source: GNA