Business24 Newspaper 8 July 2022 by Business24 Online

FR I DAY, JU LY 8, 202 2

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NEWS FOR B U SINESS LEA DERS

Are the BRICS breaking up? | BY SHASHI THAROOR

| STORY ON PAGE 4

Prez launches US$10m Societe Generale out grant to spur tourism with loan product for sector MSMEs | BY EUGENE DAVIS

| STORY ON PAGE 3

FDI as a stimulus for economic recovery in Ghana BY Paul Frimpong, CGIA, FCCE

Let’s not pretend that we aren’t worried about the current global economic happenings that have thrown all predictions into disarray. By this, I am referring to the decline in global economic growth; the rise of public debt above sustainable levels across major economies, especially in emerging markets; the degree of decay when it comes to public health due to the COVID-19 pandemic; and now the Russia-Ukraine war and its attendant consequences. In all these uncertainties and global risks, no single country is an exception, as that’s the case for Ghana. In this article, first originally written | MORE ON PAGE 2

for and published by Ghana Invest, a Paris-based private diasporaled organization dedicated to the promotion of Ghanaian trade, industry and investment abroad, I will be sharing some insights, which border on Ghana’s quest for economic recovery, which could be shorter or longer, depending on the approach that the government of the day chooses. Foreign direct investment (FDI) is an integral part of an open and effective international economic system and a major catalyst for development. The question is, how will Ghana catalyse FDI for its economic recovery?

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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.

FDI as a stimulus for economic recovery in Ghana PART 1 BY Paul Frimpong, CGIA, FCCE | CONTINUED FROM PAGE 1

L im ite d Copyright @ 2019 Business24 Limited. All Rights Reserved. Your subscription along with the support of businesses that advertise in Business24 -- makes an investment in journalism that is essential to keep the business community in Ghana wellinformed. We value your support and loyalty. Contact: editor@business24.com.gh Newsroom: 030 296 5315 Advertising / Sales: +233 24 212 2742

Economic Outlook According to a recent IMF report, Ghana’s economy is projected to remain relatively strong over the medium term, supported by higher prices for key exports and strong domestic demand. Growth is projected to reach 5.5% in 2022 and average 5.3% over 2022. Growth is expected to be broad-based, led by agriculture and services, and a relatively stronger industry sector. ‘Light at the end of the tunnel’ Let me make it simple for you to grasp. Ghana’s current economic situation fits the phrase, “There’s light at the end of the tunnel.” In the wake of the recent COVID-19 outbreak, global commodity price fluctuations, and the instabilities and uncertainties in and around Europe, the Ghanaian economy has suffered a great deal of economic difficulties at the macro and micro levels. The war in Ukraine is expected to exacerbate already-existing fiscal and macroeconomic challenges, slowing growth to prepandemic levels. The developments are expected to raise global prices for a number of key commodities, including food, fuels, fertilizers, and metals used in manufacturing,

adding to Ghana’s already-existing inflationary pressures. However, one could argue that the road to recovery could be shorter than anticipated if governments had the political will to stay through on the fiscal discipline that’s required in times like these. Rising debt levels Ghana’s public debt has risen past the sustainable levels for an emerging economy. The country’s current debt is over 80% of its GDP. The overall fiscal deficit doubled to 15.2% in 2020 and public debt increased to 81.1% in 2020, placing Ghana at a significant risk of debt distress. These rising public expenditures in the context of persistently weak revenue performance have undermined Ghana’s fiscal and debt sustainability in recent years. As the country’s fiscal risks remained high, credible fiscal consolidation was required to reverse the unfavourable debt dynamics and reduce domestic refinancing risks. Home-grown policies In the wake of these fiscal management challenges, the government has developed and

introduced policy measures and programs aimed at restoring fiscal discipline, reversing the fiscal deterioration, and putting the public debt on a downward and sustainable path. The government’s 2022 budget sets forth an ambitious consolidation plan as it aims to raise revenue from 16% in 2021 to 20% in 2022. Fiscal measures would reduce the deficit from 12% in 2021 to 4.5% by 2024. E-Levy In a move to stimulate domestic revenue growth, which is ideal in this situation looking at the impossible state for the country to borrow from the international capital market, the government has introduced an electronic transfer levy, which has faced steep opposition from the Ghanaian populace. The E-levy is estimated to generate 1.4% of 2022 GDP. To be continued… About Author Paul Frimpong, CGIA, FCCE Paul Frimpong is Development Economist and award winning entrepreneur. He’s currently the Global Head of Strategy & Membership at the Institute of Certified Chartered Economists (ICCE). This article is originally curated for and published by Ghana Invest. www.charteredeconomist.org py.frimpong90@gmail.com

| NEWS

FRIDAY, JULY 8, 2022

Prez launches US$10m grant to spur tourism sector By Eugene Davis

A US$10m grant meant to support small medium enterprises(smes) in the tourism, hospitality and creative arts sector is expected to target 60percent women, the President, Nana Addo Dankwa Akufo-Addo has announced. According to the president, government is implementing a number of initiatives to help transform the sector into a strong tool for economic growth, and also aimed at supporting smes to recover from the effects of covid-19 pandemic and help create jobs for the young people, the tourism and creative arts sectors arguably being impacted the most by covid-19, evidence in the 75percent decline in international tourism arrivals in 2020 and a 45percent reduction in 2021. Speaking at the launch of the Tourism SME Grants under the Ghana Tourism Development Project, he said “This year’s grant will target some 60percent women as beneficiaries because majority of the operators in the sector are female.” He added the grant will assist operators in the sector modernize and improve tourist sites, restaurants, tour operations, event organization and related businesses to become attractive and competitive.

The grants are in three categories namely; covid relief support, sme support, and site upgrade -these are intended to help transform the tourism sector to stimulate economic growth and create jobs, it is expected that 1,500 smes would benefit from the grant support. In 2021, government through MOTAC disbursed a cedi equivalent of US$10m to some 1,400 smes. “Government remains committed to ensuring the private sector is able to function effectively by building an ecosystem that creates opportunities for businesses to grow and create jobs for the youth, we are building a business friendly environment that will enhance entrepreneurship – a vital component of economic growth and development which is being globally embraced as an important driver of economic activity and transformation, the development of entrepreneurship has the potential to contribute to specific development objective as employment of women and the youth.” the president stated. Some 10,000 tour operators are being trained by the Ghana Tourism Authority under the Ghana Cares Obaatanpa programme to improve their skill set, customer service delivery

which is vital to the growth of this sector, government’s agenda to make it a regional tourism hub is pursued with zeal. The president further urged the private sector to ensure that their businesses are properly structured and governed in accordance with the principles of good corporate governance, this he explained is key to transforming corporate organisations in frontier and emerging economies. The World Bank Country Director, Mr.Pierre Laporte indicated that the bank has upgraded the tourism development project from moderately to satisfactory status and remains upbeat it will stay so by the end of the year. “It is the expectation of the

bank that some significant public sites would be developed to complement the almost US$20m in private sector injection over the last two years. We believe it is a perfect blend between developing public sites and right capital injection into the private sector smes backed by adequate marketing drive traffic to Ghana that will result into the ultimate growth of the sector.” Minister of Tourism, Dr.Ibrahim Mohammed Awal commended government for the continuous and tremendous support to boost the tourism and hospitality sector, which which is not only the third largest contributor of the country’s GDP after cocoa and oil and gas but also accounts for two in ten jobs in the country.

Societe Generale out with loan product for MSMEs Societe Generale Ghana has launched a new loan product to provide short-term working capital for micro small and medium enterprises (MSME). Known as the ‘Boafo Loan’, the new product allows MSMEs to access up to GH¢600,000, with a repayment period of one year without the need to provide the typical collateral as mostly required. Speaking at the launch of the product, the General Manager for Retail Business, Obed Hoyah, said MSME’s continued to face challenges, particularly with access to capital. He said locally, the prevailing economic conditions had further impacted the sustainability of the sector, especially with rising inflation and the depreciation of the Ghana cedi against the major currencies. “The timely introduction of the new ‘SG Boafo Loan Product’ is to help owners of MSME

mitigate some of these challenges”. “MSMEs are the heart of the economy, and the bank will continue to support their growth and development,” he stated. He said the bank would not only support businesses with credit facilities but specialised business products and advisory services as well. To this end, he said the bank had set up the SG Home of Business and the Innov8 Hub located at its Osu branch and Head Office, respectfully, to maximise its support for MSMEs and startups. Contributing to growth Also speaking at the event, the Deputy Head of Retail Business, Ernest Sarpong, said “as a bank, we

do not only want to be profitable, but contribute to the growth and sustainability of the businesses of our customers. “We pride ourselves on truly understanding the needs of our customers and creating products and services that help solve the practical challenges they are

confronted with in their lives and businesses. “The launch of this new product which goes with the slogan “no collateral, no problem is one such interventions. Simply come to us, show that you will use the funds for business purposes only and we will support you,” he stated.

| FEATURE

FRIDAY, JULY 8, 2022

Are the BRICS breaking up? By Shashi Tharoor The recent virtual BRICS summit, which brought together the heads of state and government of Brazil, Russia, India, China, and South Africa, was interesting as much for what did not happen as for what did. The two-day gathering was marked by some constructive discussion but also platitudes and pablum, and concluded with a grandly titled but thoroughly anodyne “Beijing Declaration.” Few doubt the huge potential of the BRICS, which comprises the world’s two most populous countries (China and India), a former superpower (Russia), and two of the biggest economies in Latin America and Africa. But the grouping’s record since the first annual BRIC meeting in 2009 (South Africa joined the bloc the following year) has mostly been a story of lofty rhetoric and chronic underachievement. The Beijing Declaration states that the BRICS High-Level Dialogue is an opportunity to deepen cooperation in the fight against COVID-19, digital transformation, supply-chain resilience and stability, and lowcarbon development. All these goals are being pursued in a variety of multilateral forums. More hypocritically, the declaration condemned terrorism and called for the finalization and adoption of the Comprehensive Convention on International Terrorism within the United Nations framework. This rang rather hollow, since the summit took place just days after China blocked a joint proposal by India and the United States to designate the Pakistan-based terrorist Abdul Rehman Makki as an international terrorist under the provisions of the UN Sanctions Committee. India and the US have long regarded Pakistan, which

notoriously sheltered Osama bin Laden, as an enabler of international terrorism. But Pakistan gets away with it because it is shielded by China at the UN. This was not the first time that China has stymied proposals for the Sanctions Committee to list known Pakistan-based terrorists. It has repeatedly blocked efforts to designate as international terrorists Masood Azhar, chief of the UNproscribed terrorist entity Jaish-eMohammed, and others associated with the equally murderous Lashkar-e-Taiba. Indian Prime Minister Narendra Modi pointedly stated at the BRICS summit that the group’s members should understand each other’s security concerns and provide mutual support in the designation of terrorists, adding that this sensitive issue should not be “politicized.” It was against this background that China, the summit chair, floated a proposal to enlarge the group by accepting new members, and subsequent reports claimed that Argentina and Iran had applied to join. But the matter was not officially discussed at the meeting and featured only tentatively in the closing declaration. Underlying the enlargement issue are two questions that go to the heart of the BRICS grouping. First, is it a largely economic organization or a geopolitical one? Second, if the BRICS is primarily a geopolitical bloc, will it become the principal vehicle for the emergence of a global axis led by China and Russia – a goal that China appears to support and that the proposed enlargement, and the putative candidates, seems intended to serve? In that case, what is India doing in it? As to the first question, the BRIC acronym – created by then-

Goldman Sachs economist Jim O’Neill in 2001 – was initially impelled by a vision of economic cooperation. The four (later five) emerging markets’ shared and compatible perspectives on issues of global governance reform certainly provided a raison d’être. But their common concerns about the direction of global development and the power of the Western-dominated Bretton Woods institutions meant that the group’s agenda was political as well. The BRICS seemed to be emerging as the premier platform of the Global South, articulating developing countries’ dissent from the socalled Washington Consensus – a tendency underscored by the addition of South Africa, the only African economy in the G20. In recent years, however, the global environment has changed dramatically. A backlash against globalization and a US-China trade war, as well as heightened suspicions among US policymakers of China’s geopolitical intentions, have been compounded by military hostilities between China and India, including the killing of 20 Indian soldiers along the countries’ disputed Himalayan border in 2020. As a result, the BRICS appears to be undergoing an identity crisis. Indian foreign-policy mandarins initially saw the group as a useful platform to increase India’s international influence, in keeping with its traditional role as a leader of the developing world. But India is plainly uneasy about efforts to turn the bloc into a geopolitical forum supporting Chinese and Russian interests – and to enlarge it to include other “like-minded” states such as Iran. (Brazil has also maintained a studied silence on Argentina’s reported membership

application.) India is said to have had a crucial hand in the drafting of the Beijing Declaration’s single reference to the bloc’s enlargement, buried deep within the 75-paragraph document. Paragraph 73 states: “We support promoting discussions among BRICS members on [the] BRICS expansion process. We stress the need to clarify the guiding principles, standards, criteria, and procedures for this expansion process through [the] Sherpas’ channel on the basis of full consultation and consensus.” Sir Humphrey Appleby, the famously circumlocutory British bureaucrat in the Yes Minister television series, could not have put it better, except perhaps for adding “in the fullness of time.” The meaning is clear: “Full consultation” is a recipe for indefinite delay and the insistence on “consensus” means that at least one state will ensure that enlargement never happens. It appears that China has not taken India fully into its confidence regarding BRICS expansion plans and the pending applications. India can scarcely be expected to welcome an enlargement of the BRICS that is intended to make the bloc more China-centric. There are also the inevitable concerns about whether, given China’s patronage, Pakistan would be next in line to join. India has always been the indispensable swing vowel in the BRICS acronym. If the bloc’s current strategic direction and possible enlargement push the country toward the exit, the grouping will become not just unpronounceable, but also unviable.

| NEWS

FRIDAY, JULY 8, 2022

Absa Bank, MEST to empower next-gen entrepreneurs Absa Bank Ghana has cemented a partnership with Meltwater Entrepreneurial School of Technology (MEST) to support business enterprises in Ghana with skills training and insights in digital technology. The goal is to unlock new opportunities by co-creating and producing the next generation of innovative entrepreneurs in Ghana and on the continent. The partnership will also open avenues for MEST and Absa to collaboratively empower startups to provide solutions to intractable business challenges in the country. The world is a different place compared to a few years ago. The scourge of the pandemic, its aftermath and resurgence, mean that things are moving at a faster pace than can normally be predicted. Any business operating in these times can appreciate the challenges - supply chain issues, human resource, competition, dynamic business environment and regulation. The Absa-MEST partnership, will therefore, prove useful for businesses trying to

make the best of the current situation and prosper. At a preliminary engagement session last week, dubbed, “Absa-MEST Connects Series,” the two organizations implored businesses and entrepreneurs to adopt technology and digitisation for sustainable growth. Director of Business Banking at Absa Bank Ghana, Grace AnimYeboah said: “This partnership is momentous and important for a number of reasons including enabling employment opportunities for the youth in startups, providing investment to fund initiatives, economic empowerment for young enterprises and the production of next generation solutions for the digital ecosystem. We are creating a bona fide platform for success and growth and Absa is happy to be leading the way once again.” On the part of MEST, Programs Director, Femi Adewumi, also expressed excitement and profound gratitude for the partnership, as “it aligns with

MEST’s strategic goal of equipping the continent’s most promising entrepreneurs with the skills required to launch and scale globally successful companies.

We look forward to impacting the numerous enterprises that will benefit from this partnership.”

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| NEWS

FRIDAY, JULY 8, 2022

Young entrepreneurs sensitized to huge AfCFTA-driven opportunities The Ghana Chapter of the Youth Entrepreneurship Programme (YEP) which is supported by the International Trade Centre (ITC) has held a one-day workshop to sensitize aspiring and youth entrepreneurs and ecosystem actors in Accra. The workshop was to expose participants to the numerous opportunities that they could capitalize under the implementation of the single continental market. Addressing the young entrepreneurs, Louis Yaw Afful, Executive Director of AfCFTA Policy Network, applauded implementers of the AfCFTA on the inclusion of youth and women in their protocols to enable them take full advantage of the agreement. “Africa has the youngest population in the world, with its youthful population estimated to account for about 26percent of the world’s labour force by 2050 according to the World Bank. It is therefore imperative and commendable for women and youth in trade protocol to have been added to the phase-two negotiations,” he indicated. This concern was buttressed by AfCFTA consultant, Dode Seidu, who highlighted some pressing areas of the continental trade agreement that provides opportunities to Africa’s youth. “When it comes to young people, the AfCFTA offers numerous opportunities in a number of sectors such as manufacturing, which opens doors for young people to be

involved in value added activities along the manufacturing chain,” he said. ECOWAS lifts coup-borne sanctions on Mali, Burkina Faso and Guinea Leaders of the Economic Community of West African States (ECOWAS) have lifted economic and financial sanctions on Mali after its military rulers proposed a 24-month transition to democracy and published its new electoral law. The bloc imposed strict sanctions on Mali in January its military leadership had earlier rejected democratic elections as was initially planned. ECOWAS Commission’s President, Jean-Claude Kassi Brou, told a news conference that the sanctions will be lifted immediately whilst borders with Mali will be reopened and regional

diplomats returned to Bamako. “The heads of states have decided to lift economic and financial sanctions imposed on Mali; essentially the closure of borders and the freezing of financial assets,” he noted. The individual sanctions targeted members of the ruling military government and the transitional council. “We decided to maintain the individual sanctions and the suspension of Mali from the ECOWAS institution,” Mr. Kassi Brou added. The sanctions are reported to have crippled Mali’s economy, raising humanitarian concerns amid widespread suffering. ECOWAS Mediator in Mali and former Nigerian president, Goodluck Jonathan, visited the country to confirm the enormous progress that the West African

nation had made in relation to the passage of an electoral code and the setting up of a monitoring mechanism for the transition. Relatedly, the ECOWAS leadership also accepted the pledge from the military that seized power in Burkina Faso to restore constitutional order with 24-months after lengthy discussions and accordingly lifted sanctions it imposed on the nation whilst similar sanctions that were imposed on Guinea have also been lifted. Meanwhile, the president of Guinea-Bissau, Umaro Sissoco Embalo, has been elected as the chairman of the authority of ECOWAS, taking over from Ghana’s Nana Addo Dankwa Akufo-Addo who held the position for two terms.

| NEWS

FRIDAY, JULY 8, 2022

GEXIM’s “TUESDAY MARKET” is best SME Market Initiative in Africa

As a testament of its determination to support Small and Medium Scale Enterprises (SMEs) to scale up and run profitable ventures, the Management of Ghana Exim Bank, GEXIM, on Tuesday 5th July 2022 received the African Union Small and Medium Scale Enterprise (AU SME) award for “The Best Market Initiative” in Africa category for its “Tuesday Market” initiative. The award was announced at the first-ever AU SME Annual Forum held in Cairo, Egypt from June 27th to July 1st, 2022, which was organised by the African Union in collaboration with the All Africa Association for Small and

Medium Enterprises (AAASME). The award was presented to the Management of GEXIM led by the Chief Executive Officer, Lawrence Agyinsam at the Bank’s Head office in Accra by the Secretary General of the AAASME, Dr. Ebiekure Jasper Eradiri, and Legal Advisor of AAASME, Barrister Warmate Jones Idikio. Receiving the AAASME team, the Chief Executive Officer of GEXIM, Lawrence Agyinsam congratulated the African Union and AAASME for introducing the AU SME Annual Forum, a platform that seeks to promote and strategize for a better, more inclusive African SME sector, to

realize Africa’s industrialization in the context of the integrated market. He expressed the Bank’s appreciation to the organisers for the recognition of its “Tuesday Market” initiative. “As a Development Bank of the state, Ghana Exim Bank is committed to supporting the Government of Ghana’s agenda to reposition the Ghanaian economy into an export-led one. In addition, the Bank has a vision to become a strong financial institution that will be a key driver in the development of Ghana’s export trade, facilitate cross border trade and make Ghana a pillar in regional and continental trade”, he added. On her part, the Deputy Chief Executive Office of GEXIM responsible for Business and Banking, Rosemary Beryl Archer highlighted the importance and dominance of the SME sector in the business environment and its critical role in the national development agenda as well as economic transformation of several countries globally. She further stated that “the significant role the SME sector plays cannot be underestimated, accounting for over 50% of private

output. With the Tuesday Market initiative, we are promoting Ghanaian products and preparing our SMEs for export through building their capacities and adding value to their products”. Dr. Eradiri indicated that the award is intended to spur GEXIM to do more within its mandate to impact more individual SMEs and the entire ecosystem. He further expressed AAASME’s intention to collaborate with GEXIM to replicate its award winning initiatives and successes in other countries across Africa, for the benefit of Africa’s teeming SMEs. Other members of the GEXIM team present at the presentation were Nana Akyaa Obeng-Adiyiah, Deputy Chief Executive Officer responsible for Finance and Administration, Michael Tetteh-Voetagbe, General Manager, Human Resources and Administration, Bright Darko, Head, SME Baking, Solomon Dsane, Head, Risk Management, Rachel Nettey, Senior Manager, Administration and Jonathan Christopher Koney, Assistant Manager, Corporate Affairs and International Cooperation.

GSE partners Young Investors Network to deepen financial literacy The Ghana Stock Exchange, as part of its objective to increase awareness and deepen financial literacy in the country, has partnered with the Young Investors Network (YIN) and other industry players to launch a bouquet of investment education programs for the youth. This is aimed at promoting interest in savings and investment amongst the youth, thus boosting financial literacy. The programs include an Investment Training Tour to selected Universities aimed at creating awareness about the Capital Market and also giving career guidance to students; a Stock Pitch Competition in which tertiary students are to recommend a listed company and give reasons why it is a viable investment option; and a Capital Market Quiz, which is an initiative to challenge senior high school students to increase their knowledge of savings and investment, activities on the capital market and entrepreneurship. Director of the Financial Sector Division at the Finance Ministry, Mr. Sampson Akligoh, said in remarks read on his behalf that: “Learning to earn, use and save money is viewed widely in higher income countries as an important step to preparing

the youth to become socially and financially competent adults, and it’s no different from our part of the world. It is important for students to understand that being financially literate goes beyond the mere ownership of a bank account. Knowledge of what goes into investment is as important as knowing the need for a bank account.” Deputy Director-General, Finance of the Securities and Exchange Commission, Mr. Paul Ababio said, “The program represents a key opportunity to support the implementation of Pillar Two of the 10-year Capital Market Master Plan that seeks to expand the investor

base by reaching out to more people. It also fits into the national financial inclusion and development strategy which aims to increase access to formal financial services from 58percent to 85percent of the adult population by 2023. The Young Investors Network (YIN) is a financial education organization with a firm commitment to educating the youth on financial literacy and business skills with investment programs designed to support a favorable business climate. President of Youth Investor Network, Joshua Mensah, said, “Academic qualifications are important for our Youth and financial education. They are both important, but the schools are forgetting one of them; that is financial literacy. We will not stop until the last Ghanaian youth is financially literate.” Managing Director of GSE, Mr. Ekow Afedzie, in a speech read on his behalf, said: “Participation of the youth in capital market activities and

investment, in general, is still low in Ghana. It has therefore become imperative to develop a targeted investment education program with various partners to help embed a savings and investment culture among the youth. This will help improve their standard of living and bridge the financial literacy gap within the country. With investment education being a critical part of its strategic plan, the GSE is committed to supporting the roll-out of these programs and helping drive it to its intended goal”. Partners supporting the three initiatives include UMB Stockbrokers Ltd, IC Securities Ltd, Axis Pension Trust, Central Securities Depository, National Pensions Regulatory Authority (NPRA), Databank, NIMED Capital Ltd, and the Securities & Exchange Commission (SEC). The programs will be rolled out from July this month at the various campuses are expected to support the GSE and its partners’ efforts in preparing the next generation of investors to create wealth and support the development of the capital market in Ghana.

| NEWS

FRIDAY, JULY 8, 2022

Revival for Metro Mass

…Belgian gov’t agrees to supply 40 new buses for the next five years By Eugene Davis Public transportation company, Metro Mass Transit Limited (MMTL)will take delivery of 40 new buses from the Belgian government for the next five years, President Nana Akufo-Addo has said. According to the president, the Belgian government had agreed to a five-year support plan that will guarantee annual supply of buses to the MMTL to ensure that it remained viable. He said “The Belgian government is yet extending another concessionary financing for the acquisition of 40 buses every year for the next 5 years to augment further the fleet of the company. This is truly timely and I urge all players to work assiduously as we seek to revamp fully the operations of Metro Mass Transport Limited.” At a ceremony at the forecourts of the State House in Accra to commission 45 buses, President Akufo-Addo said the move was part of his administration’s efforts to improve public mass transportation and ensure the profitability of the operations of the MMTL. The 45 VDL buses are the first batch of 100 buses that have been procured by the government to strengthen the MMTL’s aging fleet. The commissioning of these buses

will improve the operations of MMTL and also offer passengers improved services. President Akufo-Addo also disclosed that the project is being implemented in phases, with the phase covering the purchase of a total 100 buses and after sales service support and sufficient spare parts to restore some 15 broken down buses. “We will have 150 out of this first phase, in addition to this, technical assistance in the form of a grant from the Belgian government is also being provided to cover training of drivers and maintenance of staff and operational support to the

company, I express my sincere appreciation and gratitude to the Belgian government for providing both financial and technical support for the purchase of these buses. Transport Minister, Kwaku Ofori Asiamah, indicated that the second batch of 55 buses would be supplied and used before the end of the year. He also encouraged the management of MMTL to explore other partnership arrangement with the private sector to bring in more buses to support its operations. “It is my hope that these interventions among others

would bring life to the company. The prosperity of our rising population is primarily reliant on the efficiency of our transport system, therefore investing in this area is unquestionably and prudent.” Further, he stated that the culture of maintenance should not be lost on the company to “handle these buses with utmost care”, stressing that it is a huge investment the government has made and the only way to demonstrate the investment is worthwhile is to ensure “these buses go beyond their useful lifespan for the people of this country.”

| FEATURE

FRIDAY, JULY 8, 2022

The Future of Work Capsules: Commodity developments, the global looming recession, unemployment fears – adapt to the future of work dialog By Baptista S. Gebu (Mrs.) Are you aware of the global looming recession? There is fear of a precession of recession coming soon as the United States, United Kingdom, South Korea, Japan, Canada, and the Eurozone – 19 countries accepting the Euro as their prime currency et al fears a looming economic downturn due to inflation, rising stock prices, global debts leading to labour unrest. All these factors are currently happening. There is a fear this recession warning coming this year cautioning a global economic downturn could be severe than the great recession. The Great Recession was a period that marked general decline, i.e. a recession, observed in national economies globally that occurred between 2007 and 2009. The scale and timing of the recession varied from country to country. There is imbalance between demand and supply causing globally inflation. This is a sign of an overheated economy which causes interest rates to also rise. Stock prices are rising from the pandemic era causing asset bubbles. $11 trillion dollars was lost just in May 2022 according to Bloomberg from this. Global debts are reported to have reached a record high of $305 trillion dollars. This includes all kinds of debt – private debt, household, and government debts. By the year 2000, globally debts were said to around $83 trillion dollars. This is almost four times fast forward to 2022 which equals 355% of the global GPD. Some of the debts could fail. Yes some could fail and when that happens, this can lead to an economic slowdown. Real global unpredicted situations like the Covid pandemic, Russia – Ukraine war also causes economic collapse leading to inflation and supply shortages felt by the world at large. Could things get worse before getting better again? There is labour unrest as well from the United Kingdom, Germany, France, South Korea, and here in Ghana – the recent Arise Ghana demonstration. All seems to have same demand for better wages. Recessions also cause social unrest. The textbook definition of a recession is a significant decline in economic growth that lasts months, even years. During a recession, a country’s overall economic output declines, the unemployment rate goes up, retail

sales fall, businesses cut their spending and manufacturers produce less goods. During this recession, economies will struggle, people will lose work; companies will make fewer sales and the countries overall economic output will decline. The average person suffers during a recession because; a lot of people tend to lose their jobs. According to Forbes, in the last recession more than 22 million people were laid off. People who keep their jobs during a recession may have their hours and or commission rates also reduced. Employers also tend to cut back on bonuses and salary increases during recession. The looming global recession warning is a challenge. Recessions are bad for capital and labor. Corporate profits drop as sagging demand and severance drive up unit costs. Overly indebted companies may default on their debt, driving up borrowing costs or causing credit to evaporate entirely for others in similar straits. Food and drink will continue to be essentials during this economic downturns – recessions. Be agile and instead build resilience to protect your finances from an economic shock. According to the World Bank, “Ghana’s educational system is not producing the needed skills”. As it stands now, the country’s unemployment and under employment rates keep increasing. The World Bank reports “Ghana’s underemployment rate is nearing 50%”. Ghana is faced with 12% youth unemployment and more than 50% underemployment, both higher than overall unemployment rates in SubSaharan African countries. Despite major investments by both government and private sector, this challenge will intensify if job opportunities remain limited. Whereas “underemployment is a state where highly skilled and educated individuals work in low-skilled, low-paying jobs”, unemployment refers to a situation of being unemployed. A number of people then will not have a job that provides money. When someone or something is not used as much as they should be, these things are said to be underutilized. Same way when highly skilled and educated people are working in low paying jobs, they are underemployed. A number of qualified master’s degree holders and certified

professionals are settling for diploma and first-degree paying jobs due to unemployment situations in the country. In the news this week, a graduate of the University of Ghana was seen announcing his joblessness with a placard by the road side. The unemployment rate in Ghana has almost tripled in little more than a decade, according to the country’s latest census. More than 1.55 million people, or 13.4% of the West African country’s economically active population, are out of work, according to the 2021 population and housing census reported by the Ghana Statistical Service on its website. Ghana recorded a jobless rate of 5.3% in the last census, in 2010. Ghana’s population increased to 30.8 million in 2021 from 24.7 million in 2010, according to the population and housing census figures. Ghana like many other African countries do not regularly produce data on unemployment. A situation which calls for advocacy and change. The new World Bank report titled “Youth Employment Programs in Ghana: Options for Effective Policy Making and Implementation” identifies agribusiness, entrepreneurship, apprenticeship, construction, tourism and sports as key sectors that can offer increased employment opportunities for Ghanaian youth. It also calls for more investments in career guidance and counseling, workbased learning, coaching, and mentoring to equip young people with the skills needed for work. The report suggests that although these are not new areas, the government could maximize their impact by scaling-up these priority areas in existing youth

employment interventions and improve outreach to the youth. To promote youth employment in Ghana, it’s very imperative we align formal education programs and skills development initiatives in the context of a fast-changing labor market that requires new and different skill sets, and to adapt to new technology. Partnership with the private sector is equally relevant—such as involving employers in the design of training curricula and introducing certifications for occupational standards in order to adapt to the future of work conversation. The report further calls for an Integration of preemployment support activities as part of the country’s current education system to better prepare young people for the transition to work. Promoting social inclusion initiatives to improve access to credit and management training for women entrepreneurs, as well as improve both infrastructure and equipment available for persons living with disabilities and ensure that no one is left behind is a great addition, as the report emphasizes the need for greater collaboration among different stakeholders to reduce duplication and fragmentation of youth employment programming. To this end, I feel privileged to be providing leadership to the Rotary District 9102 this rotary year as the District Vocational Training Teams Chair as we enroll the District’s Knowledge Bank Project. An idea I have been nursing for long. You can reach out to the District Governor’s office or any rotary club in your community to request partnership with rotary on this all important and timely project.

Baptista is an influencer, a human resource professional with a broad generalist background. Building a team of efficient & effective workforce is her business. Affecting lives is her calling! She is a Hybrid Professional, HR Generalist, strategic planner, innovative, professional connector and a motivator. You can follow this conversation on our social media pages

Baptista Sarah Gebu Sarahtita Saratistagh

FoReal HR Services. Call or WhatsApp: +233(0)262213313. Follow the hashtag #theFutureofWorkCapsules #FoWC

| AFCFTA NEWS

FRIDAY, JULY 8, 2022

Afreximbank, partners hold three-day trade roadshow for banks and business community The Afreximbank and Oakwood Green Africa Limited, has in conjuction with trade stakeholders including the AfCFTA Secretariat, Ghana Free Zones Authority and partner banks have organised a three-day Ghana Trade Roadshow for banks, non-bank financial institutions and the business community. In addition to promoting Afreximbank’s mandate in Ghana, the roadshow sought to proffer deeper understanding of the bank’s products to the domestic financial players and entrepreneurs as well as consolidate various discussions that were initated with the central bank following the successful launch of the PAPSS. It will also serve as an introduction to the Ghanaian market the various funding initiatives being undertaken by Afreximbank, AfCFTA Secretariat and partners in their bid to transform Africa’s trade. Secretary-General of the AfCFTA Secretariat, Wamkele Mene, sharing the vision of the single market, indicated that the agreement will establish reliable value chains that will facilitate intra-Africa trade. He also touched on some of the

exepcted benefits of the market using the Port of Mombasa as an example: “You can move goods from the port of Mombasa to Kampala in three days; they have a digital tracking system for trucks that leave port and see in realtime what’s in the truck.” Deputy Minister of Trade and Industry, Herbert Krapah, said Ghana remains committed to the implementation of the agreement through its National AfCFTA Coordination Office. According to him, about 200 companies are undergoing an enterprise assessment to determine their specific needs for facilitation and support. “These support programmes will accelerate the readiness of participation for Ghanaian

businesses under the AfCFTA,” he noted. AfCFTA Secretariat repositions as an organ of the African Union The AfCFTA Secretariat has held a sensitization program for its internal public on its planned move to reposition the brand as an organ of the African Union. Principal Communications Advisor at the Secretariat, Ms. Grace Khoza, addressing the gathering, emphasized that the repositioning was to show the seriousness of its identity which must be guarded at all times. “This is literally a conversation around who we are as an organisation; where we want to position our self and why we want to have the clean look that we

have,” she said. Ms. Khoza further advised all partners to engage with the Secretariat to get familiarized to its new brand position to help protect the image of the brand, the African Union and the continent as a whole. The AfCFTA Secretariat was instituted just about a year ago but has been established as a force to reckon among other similar international public organisations specifically in terms of building its brand identity as a corporate institution. The Secretariat’s official handle was recently verified by the global social media giant Twitter as a recognised brand and management is taking this prowess to a whole new level with the commencement of process repositioning the brand as an organ of the African Union. “The rebranding takes us to where the organisation will have a complete corporate look; we are corporatizing its look so that people can clearly identify who we are,” Ms. Khoza added. The new logo and look, according to her, will be communicated extensively to both internal and external publics so people do not abuse the corporate brand of the Secretariat. She added: “We have evolved and we are hoping that we do that with the community and the continent as a whole. We are doing better because we are looking at ourselves as an organisation that proudly represents this continent.”

| NEWS

FRIDAY, JULY 8, 2022

Ghana Stock Exchange admitted into the UN sustainable stock exchange initiative

The Ghana Stock Exchange (GSE) has solidified its commitment to transparency and sustainability by becoming a partner exchange of the UN sustainable stock exchange initiative. The newest partner joins a network of now 116 stock exchanges and 13 derivatives exchanges around the world that are committed to promoting sustainable development. The SSE works with exchanges through technical assistance, consensus building, and research to contribute to the achievement

of the United Nations Sustainable Development Goals (SDGs) and to stimulate investment for a sustainable future. Exchanges around the world partner with the SSE to work towards a common objective of fostering financial markets that support the growth of sustainable and responsible business practices. Mr. Ekow Afedzie, Managing Director of Ghana Stock Exchange said: “Joining the UN Sustainable Social Exchange initiative could not have come at a better time when there is a global trend

towards sustainability-themed products by most Exchanges across the world to support Environmental, Social, and Governance Initiatives (ESG). Being part of this initiative further reinforces our commitment to ESG following the recent approval of Green Bond and Sustainability-themed product rules in the Ghanaian capital market.” Established thirty-one years ago, the Ghana Stock Exchange has played a significant role in the country’s economic growth. It was established with

the mission to be a relevant, significant, efficient, and effective tool for capital mobilization and wealth creation. Just as other markets in Africa, the stock market has emerged as a major provider of investment capital inflow in Ghana. It operates three namely, the equity market which is the main Market, the Ghana Fixed Income Market (GFIM) which is the Bonds Market and the Ghana Alternative Market (GAX) which is the Market for Small and Medium businesses.

Graduate apprentice in Obuasi receive start-up kits By Sampson Manu Some 55 youth, mostly women, have received business start-up kits after successfully undergoing apprenticeship training in Obuasi under the Young Africa Works Programme. The initiative, which was designed by the Ghana Enterprises Agency (GEA) and Mastercard Foundation in 2019, is targeted at creating employment and income generating opportunities for the Youth to simulate the economic activities in Ghana. The beneficiaries had gone through successful training and mastered skills in cosmetology, dressmaking, welding, metal fabrication and auto mechanic. The Obuasi Municipal Chief Executive, Honorable Elijah Adansi-Bonah who delivered the items to the trainees recounted the Assembly’s support to the apprentice during the National

Vocational Technical Institute (NVTI) examination. He said as a way of empowering the Youth to learn trade and be economically independent, the Assembly has been sponsoring apprentice to register and write the NVTI exams. He again lauded the initiative and added that the NPP Government remains committed to creating employment opportunities for the Youth in Ghana. He urged the Youth to take advantage of such programmes. “Initiatives like this from GEA and Mastercard with the support of the Obuasi Municipal Assembly is an indication that the Government is leaving no stone unturned in its quest to create jobs for the teaming unemployed youth in the country. Let’s continue to support the Government to deliver on its promise to create more jobs”.

Mr. Adansi-Bonah further urged the beneficiaries to add value to what they have learnt. He said “ before you can make great impact and be successful as a business owner you should add value to what you have acquired through training. I also appeal to you to treat your customers well”. The Head of Business Advisory Center (B.A.C), Obuasi Kelvin Ofori Atta extolled the Municipal Chief Executive for his immense support towards the activities of the BAC and youth empowerment. He explained that so far, a total of 771 people in Obuasi have benefited from the three components of the Young Africa Works Programme namely; Innovation Creativity and Entrepreneurship (ICE), Apprenticeship to Entrepreneurship (A2E) and MSME Business Acceleration

(MBA). On Jobs created and businesses established since 2021, Mr. Ofori Atta said so far, a total of 295 jobs have been created with 79 new businesses established as a result of the plethora of programmes rolled up by the Ghana Enterprises Agency in Obuasi. The Chairman of the Association of Small-Scale Industries in Obuasi Gabriel Dwomfour advised the beneficiaries to take what they have learnt seriously, improve upon it and also adopt the best practices to market their products or businesses. The beneficiaries who spoke with the Media thanked the Government and the Sponsoring agencies for the training and the start- up kits.

| NEWS

FRIDAY, JULY 8, 2022

Hennessy teams up with Nico Wayo to revitalise GAEC Basketball Court As the world’s best-selling cognac, Hennessy is proud to introduce ‘In the Paint’ to Accra - a unique artistic initiative that brings the Never Stop Never Settle spirit of the brand to local communities through basketball and art. Deeply rooted in urban culture, Hennessy’s ambition is to bring communities together. To celebrate these values, Hennessy has collaborated with renowned Ghanaian local Artist, Nicholas Tettey Wayo (also known as NICO WAYO), to revitalize the iconic, ever busy Ghana Atomic Energy Commission basketball court in a meaningful way. The collaboration demonstrates Hennessy’s long-standing

commitment towards supporting talented artists who embody the brand’s ethos, continuing a decade of meaningful artistic collaborations. “Everything about life is art and nothing is done without art” says Nico Way. “A nation can never be developed without art, so as an artist, I work hard to develop paintings that speak both to me and to others about the beauty that exists. “ Blending urban culture and cognac in the court design, the different shapes connecting to each other in different colours signify diverse people and cultures coming together as a team to play on one court in peace, love and unity - even though

it’s competitive. The “Adinkra” symbols each have their unique representations but the four together symbolise “Excellence”. Every basketball and sports team should strive for excellence, as does the team at Hennessy to craft every bottle to the very best of its ability. In the court design, Nico Wayo makes use of the Hennessy “Bras Armé” icon, but playfully redesigns it to integrate the NBA partnership with basketball in hand. The robust colors showcased throughout the design represent the energy of both the game and more importantly Africa, and the creative beat of the African people. “From the very beginning of our

global partnership with the NBA in 2021, we decided on a program dedicated to communities in order to share the joy and values of basketball with as many people as possible. The idea of “In the Paint” was born, renovating basketball courts and entrusting this renovation to local artists. We are geared up for the fifth instalment here in Accra Ghana. There is tremendous support for Basketball in the country and we are looking forward to celebrating the spirit of the game together” says David White, Regional Marketing Director for Hennessy in Africa and the Middle East.

JLL expands its global tourism & destination advisory practice to Africa JLL’s Hotels and Hospitality Group announced today that it has appointed Bernadine Galliver as Vice President to the Tourism and Destination Advisory practice. Galliver will work alongside Daniel Fenton, Executive Vice President and Global Director of the Tourism and Destination Advisory practice and Wayne Godwin, Head of Hotels & Hospitality Group, Africa in leading the Tourism & Destination Advisory practice in Africa. JLL’s Hotels and Hospitality Group has an established presence in Africa, having been on the continent since 1992 and advising on more hotel transactions than any other advisor in Africa. JLL’s Global Tourism & Destination Advisory practice has completed over 120 assignments in the US and destinations globally. Most recently, JLL’s Tourism and Destination Advisory practice released a Global Tourism Readiness Index in collaboration with the World Travel and Tourism Council. The expanded offering in Africa will focus on serving regional tourism entities, government ministries, global and regional destination development initiatives and economic development groups on destination strategy, tourism planning and destination development. “The pandemic has highlighted the importance of tourism for economic and social development in Africa as well as conservation.

The continent is blessed with an incredible tourism product and governments need to focus on aligning policy and strategy to see Africa achieve its potential.” Godwin said. “As JLL, we have already consulted to private sector clients on hospitality and tourism investment in 46 African countries, and the opportunity to marry our on-the-ground experience in the region with JLL’s global destination planning expertise is a very exciting one.” Based in South Africa, Galliver will focus on advising clients in the tourism ecosystem, including public and private entities vested in the sector’s growth. “Bernadine’s outlook and over 15 years of experience advising

clients across Africa will enable our team to continue to provide innovative solutions and meet this growing client demand.” Fenton said. “No matter where our clients are in the tourism life cycle or where they fit into the tourism value chain, we specialise in providing solutions that help them to achieve their tourism ambitions”, Galliver said. “Our tourism and destination advisory practice is the perfect complement to JLL’s Hotels and Hospitality business, with investment into infrastructure and real estate often either driven by tourism or required to unlock tourism potential. JLL’s state-ofthe-art planning tools put us in

the unique position of providing practical solutions as part of a more holistic approach to destination planning”. Galliver joins JLL having spent the past 13 years at Grant Thornton and BDO, and other specialist tourism consultancies prior to that. She has worked with government ministries/ departments and economic development/tourism entities, developers, lenders, tourism and trade associations, hoteliers and communities across the tourism value chain. Galliver holds a Master of Science in Agriculture from the University of KwaZulu-Natal. She also has qualifications in ecological studies and environmental law.

FRIDAY, JULY 8, 2022

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| COMMENT/ANALYSIS

FRIDAY, JULY 8, 2022

People can support museums in two ways: by helping to stimulate visits and by supporting them in general…how well can you support? Part 1 By Sampson Manu The National Museum has been renovated and according to projected plans it’s expected that 150,000 tourists will visit the museum yearly. Beginning plans to achieve this all important goal, it was expected that news of the event launch would have been posted on the various Ghana Museums and Monument Board websites. I visited two of their websites namely. www. ghanamuseums.org and there was no news of the launch and all the beautiful speeches delivered at the launch. The website still had information dating back to 2015 on its website. I also visited www.gmmb. gov.gh which looked more current yet the news of the launch of the National museum is yet to be posted. They had information dating back to 2020. Marketing our tourism in this age of information technology will indeed mean that we remain current in delivery information on government website. Tourists both local and international visiting these sites and not getting the relevant information may not encourage them to visit the said attraction and that could be a stumbling block in achieving our goals. The National Museum was opened on the 5th of March 1957 and this is the first major renovation it has experienced. Whiles a step in the right direction, we must encourage visitors to see the National Museum and there are some important facts we all need to know in our bid to making the museum that preferred tourist destination here in Ghana. A research was carried out by Van Riel Patricia Heijndijk as to why people love art museum. The findings were very interesting and revealing and could be important to the stake holders marketing our museums. The study revolved around 18 of the most famous art museums in the world covering 10 countries. In 2017, a new study – implemented by the same entities – was done in 10 countries and reveals a similar result. Museums are evaluated on average at 79 on a 0 to 100 scale, while companies worldwide only score 64.2. The core questions they focused on in this study were; 1. What is the magic behind this high degree of admiration? 2. What can companies learn from museums when it comes to reputation management? Which art museums were studied? 18 art museums partly based on their annual visitor numbers. The most visited art museums appear to be concentrated in the Western world, although Asia and Latin America are rapidly developing attractive museums too. That is why they have also added the top museums from Asia and Latin America. In addition, again to avoid an over focus on Europe and the USA,

they decided to study a maximum of three art museums per country. All museums have been measured in their home country and in nine other countries in which they have selected one or more art museums. The following museums and countries were selected: 1 Musée du Louvre, Paris 2. British Museum, London 3. Metropolitan Museum of Art, New York 4. National Gallery, London 5. Vatican Museums, Vatican City 6. Tate Modern, London 7. National Gallery of Art, Washington D.C. 8. Musée National d’Art Moderne, Paris 9. State Hermitage Museum, St. Petersburg 10. Musée d’Orsay, Paris 11. Reina Sofia, Madrid 12. Museum of Modern Art, New York 13. Museo del Prado, Madrid 14. Rijksmuseum, Amsterdam 15. Van Gogh Museum, Amsterdam 16. National Art Center, Tokyo 17. Centro Cultural Banco do Brasil, Rio de Janeiro 18. Shanghai Museum, Shanghai * Source: https:// en.wikipedia.org/wiki/List_of_most_ visited_art_museums Brazil China France Italy Japan Netherlands Russia Spain UK USA Who did they ask? The survey was done online by approaching a sample of museum visitors and non-visitors in each of the 10 countries. The core of the questionnaire was aimed at the regular museum visitors. Nearly 12,000 people were interviewed: 5,065 non-museum visitors and 6,419 museum visitors participated. Each of the 18 art museums had to be rated by at least 150 respondents from its home country and by 50 respondents from any other country who are familiar with the museum. Non-visitors differ from visitors as they are often 45 to 64 years old, with a low income and/ or a medium degree of education. In contrast to what many may believe, museum visitors are not especially frequent among a certain age group, nor income category. However, the stereotype that museum visitors are predominantly higher educated is confirmed in this study and appears to be a global phenomenon. How did we measure reputation? The overall reputation (Pulse) is driven by seven elements that people take into consideration when they assess an organisation regarding its past and expected future performance. These seven drivers of reputation are: products and services, innovative capacity, workplace, governance, citizenship, leadership and financial performance. Each driver is measured by several attributes that provide the assessments of respondents on a detailed level. For ‘products and services’ for example, the following attributes were used: attractive collection, collection distinguishes itself from other museums, skilled employees, and inspiring collection. A similar translation has been

applied for all other drivers of reputation. Finally, the RepTrak® model measures behavioural intentions. The standard statements here were (again) translated into the context of the museum world. These behavioural intentions are shown on the right side of Pulse. People love art museums Most people have a high degree of appreciation for museums. Even the majority of the people that did not visit a museum in the past three years have a favourable impression about museums. They classify them as reliable, honest and fun. Only 21 per cent of the non-visitors express negative associations about art museums. As can be expected, visitors are extremely positive. Visitors rate an art museum on average at 79. Compared with the worldwide average score of 64.2 for corporations, this is a stellar high score. Yet, there are some criticasters too: 15 per cent of the respondents have given a museum a reputation score below 60. They are mostly from China and Brazil rather than from Western countries, but do not differ in other demographic characteristics. The average score for all museums in Brazil (74) and China (70.4) is substantially lower than the average score in France (84), the USA (83.2) and Italy (82.4). Please note that all scores have been culturally adjusted, implying that in countries that tend to be more positive on average, the scores are decreased and the other way around. Gap between appreciation at home and abroad The reputation of museums differs not only from continent to continent. As can be expected, museums have a higher reputation among people from their own country than from other countries, due to feelings of patriotism. This is certainly true for the Russian Hermitage and the British Museum which are evaluated much higher in their own country than in the nine countries abroad. However, this is not true for all museums in the study. For example, the Shanghai Museum and the Centro Cultural Banco do Brasil receive higher evaluations abroad than within their own country. Museums are loved, but do they get support? People can support museums in two ways: by helping to stimulate visits and by supporting them in general, for example through donations. The study results show that relatively large museums are often supported in terms of more visits, but when it comes to supporting a museum in general, people are more willing to help the relatively smaller museums. History sometimes matters European museums on average score more positively than USA and especially Asian and Latin-American

museums. This is partly because of the heritage that these museums can boost on. The largest and mostvisited museum in the world, the Musée du Louvre in France, started in the 17th century, the Russian Hermitage in the 18th century and the Dutch Rijksmuseum in the early 19th century. The Shanghai Museum opened its doors only in 1952 and Centro Cultural Banco do Brasil even only in 1986. The top American art museum were created in between the starting phase of art museums in Europe and in Asia. The New York Metropolitan Museum of Art (The Met) started in 1872, the Museum of Modern Art (MoMA) in New York in 1929, and the National Gallery of Art in Washington DC only in 1941. Having had centuries to build a track record in collecting, protecting and showing an impressive collection naturally does impact your reputation, even outside of the country you’re based in. Still, some new entrants appear to be evaluated sky high in 10 countries. This is especially true for the Van Gogh Museum (opened in 1973), which is number 2 worldwide. The same can be said about the Musée d’Orsay (1986) with 80.6 and also Tate Modern (2000) that appear to be evaluated very high on the drivers of reputation. In other words, a longlasting track record matters, but a new kid on the block can move up swiftly if you have an appealing collection that is well-managed, and if you are seen as contributing to society in a relevant way.

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

| NEWS

FRIDAY, JULY 8, 2022

AGA, Obuasi Mine outdoors comprehensive 10year (SEDP) to stimulate development in Obuasi Following the expiration of the 3-year Social Management Plan (SMP), AngloGold Ashanti, Obuasi Mine has launched another allinclusive 10-year Socio-Economic Development Plan (SEDP) to further accelerate development in Obuasi. The 10-year SMP according Richard Jordinson, Senior Vice President, Ghana & Tanzania Business Unit, was borne out of a strategic consultation with its major stakeholders, keeping in mind the longer-life of mine, and the need to ensure all stakeholders benefit from a viable and secure mine. He assured that the Company will continue to pursue strategic relationships with their stakeholders to build resilient and socioeconomically self-sustaining communities through Improved Social Development, Diversified and Sustained Local Economy and Improved Partnerships. Giving account of the just ended 3-year Social Management Plan, Mr. Jordinson said the Plan was hugely successful. He said the erstwhile Plan captured areas like Education and Youth Development, Health, Social Infrastructure, Agriculture Economic Development. He mentioned plethora of interventions that accompanied the Plan. He said the company collaborated with its major

Stakeholders to establish the KNUSTOBUASI campus, Various Youth Apprenticeship Programmes were also rolled up. Additionally, he said, through the 3- year SMP the Mine funded the construction of a fully furnished Maternity Block for the Obuasi Government Hospital and put up a state-of-the art Intensive Care Unit at the AGA Health Foundation, which has proven tremendously helpful in the management of COVID-19 cases in Obuasi, reducing mortality and morbidity in patients. “ Our SMP also birthed the construction of a 1.3Km asphalt road from Kunka Junction to Nyameso Shell filling station in Obuasi which has since eased the burden of motorists plying that stretch. The Managing Director of Anglogold Ashanti Obuasi mine, Eric Asubonteng emphasised that the 10-year Socio-Economic Development Plan has been thought through and the final product was as a result of a year of consultation involving major stakeholders of the Mine. Again, he said the Plan was a reflection of the lessons learnt in the implementation of the 3-year Social Management Plan which ended this year. Detailing the key components of the SEDP, Dr. Asubonteng said the Company plans to put up an Eco-

Industrial Park at the former ‘ETS site ‘ in the Obuasi East District. He said the Eco- industrial park will comprise a community of businesses located on a common property in which businesses seek to achieve enhanced environmental, economic and social performance through collaboration in managing environmental and resource issues. He also said the company through the 10-year SEDP will collaborate with Knust to establish the AGA Health Foundation as a teaching hospital and also build a Community STEM library at Knust- Obuasi campus. The Managing Director also said the company will establish a Robotics Training center at Obuasi Senior High Technical school, establish AGA North Mine Workshops as a functional Engineering Training Centre and also train 1000 youth in mining related disciplines. “ To improve Community infrastructure, AGA plans to rehabilitate 10km of road networks in Obuasi, construct and equip 3 police stations or posts and instal 4km overhead powerline and Street lighting. Hon Simon Osei Mensah, the Ashanti Regional Minister mentioned the role played by the Asantehene Otumfuo Osei Tutu II, Eric Asubonteng, the MD

of AGAG and the President, Nana Addo Dankwa Akufo-Addo in the redevelopment of the Obuasi Mine. He was optimistic that the 10-year Socio-Economic Development Plan if successfully implemented, will enhance the development of Obuasi and its surrounding areas. He however cautioned illegal miners who have pitched camp at the concessions of AngloGold Ashanti to move away since the company needs a congenial atmosphere to operate. Her Excellency Grace Jeanet Mason said the 10-year SocioEconomic Development Plan of Anglogold Ashanti presents opportunity for the Mine to give back to the community and provide the needed Development the people of Obuasi deserve. She said the current bilateral reaction between Ghana and South Africa especially in the Extractive sector will inure to the benefit of both countries. Nana Opagyakotwere Bonsrah Afriyie II, the Adansihene said the Adansi Traditional Area will be closely monitoring the implementation of the 10-year SEDP to ensure that what have been listed are successfully implemented.

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FRIDAY, JULY 8, 2022

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FRIDAY, JULY 8, 2022

MTN’s intervention reduces 20% mortality rate at Cape Coast Teaching Hospital The Cape Coast Teaching hospital says it has recorded a decline in maternal and infant mortality cases since the handing over of a blood bank to the Obstetrics and Gynaecology Unit of the Hospital by the MTN Ghana Foundation in 2021. Speaking to a delegation from MTN who visited the facility recently to access its impact, the Acting Chief Executive Officer of the Cape Coast Teaching Hospital, Dr Stephen Laryeh said “We are grateful to the Foundation for coming to our aid with this blood bank. Since the provision of this facility in 2021, maternal mortality, resulting from blood issues has reduced by about twenty percent (20%). Hemorrhage which was the highest cause of maternal mortality has reduced”. On his part, the Senior Manager for South West Business District of MTN Ghana, Mr. Prince OwusuNyarko said “We are happy the facility is helping to improve health care delivery at the Cape Coast Teaching Hospital. The establishment of this facility for the hospital and the people of Cape Coast is a proof of the Foundation’s commitment to

brighten lives and to mobilize blood to save lives”. He encouraged the hospital authority to continue to take good care of the facility for posterity. The facility has a reception area, an office for staff, a donor lounge, a bleeding room, a laboratory and a fridge room. It has a storeroom, a washroom, and locally fabricated donation couches. The project was constructed at total cost of GH¢ 300,000 and handed over to the management of the hospital in

June 2021. The MTN Ghana Foundation has over the years remained committed to mobilizing blood to restock National Blood Services and blood banks in major hospitals across the country through its “Save a Life” blood donation exercise. To date, over 20,000 units of blood have been collected since the inception of the initiative in 2011. The blood donation exercise has been put temporarily on

hold as a result of the COVID-19 pandemic and is yet to resume. In recognition of its efforts, the MTN Ghana Foundation was adjudged the highest Corporate blood donor in 2013, second highest corporate donor in 2014 and one of the highest corporate donors in 2015 by the National Blood Services. The MTN Ghana Foundation has initiated and completed over 53 health projects since its inception.

realme and Jumia join forces to boost smartphone adoption in Africa Jumia, the leading panAfrican e-commerce platform, today signed a Memorandum of Understanding with realme, the world’s fastest-growing smartphone brand, which would provide millions of consumers in Africa access to innovative and trendsetting devices with the latest technology. The agreement allows for realme to have an official store on Jumia’s platform that would connect it with online consumers across 11 African countries, initially including Nigeria and gradually expanding to Kenya, Ghana, and Ivory Coast, and thereafter to the remaining African countries where Jumia operates. “We are delighted to begin exploring how we might offer our platform to realme and provide it with the opportunity to grow and access the African market. Both of our companies share similar values and we look forward to a collaboration that would provide Jumia’s consumers access to bestin-class, affordable smartphones via Jumia’s seamless shopping

experience,” said Sandeep Narayanan, VP, Consumer Electronics, Jumia. “We are thrilled to partner with Jumia, the leading e-commerce platform in Africa, to bring our smartphones to users across the continent. This partnership reflects our ongoing commitment to technology decentralization by making technology that used to

be only in flagship models to be accessible to more consumers. We believe the young generation in Africa will find our products to have the best side of performance and of trendsetting design, as it is our mission to scale innovation with trend for consumers in the world” said Jack Zhang, General Manager of realme CIS & MEA region.

“Many Ghanaians and Africans are embracing e-commerce today and smartphone adoption is leading the way in this tech revolution.We are positive that this partnership will ensure more Ghanains have access to quality and affordable smartphones,” added Tolulope Thomas, CEO of Jumia Ghana.

| MARKET REVIEW

FRIDAY, JULY 8, 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.

FRIDAY, JULY 8, 2022

| 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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FRIDAY, JULY 8, 2022

Absorbing the shock of the energy transition By Owen Gaffney

Russia’s war on Ukraine has sent shockwaves around the world. Oil prices have skyrocketed and food prices have soared, causing political instability. The last time food prices were this volatile, riots erupted across the Arab world and from Burkina Faso to Bangladesh. This time, the energy and food shock is happening against the backdrop of the COVID-19 pandemic. When will the shocks end? They won’t. So, we can choose either resignation and despair, or a policy agenda to build social and political resilience against future shocks. Those are our options, and we had better start taking them seriously, because the shocks are likely to get worse. On top of geopolitical crises, the climate emergency will bring even greater disruptions, including ferocious floods, megadroughts, and possibly even a simultaneous crop failure in key grain-producing regions worldwide. It is worth noting that India, the world’s second-largest wheat producer, recently banned exports as part of its response to a devastating heatwave this spring. But here’s the thing: reducing vulnerability to shocks, for example, by embarking on energy and food revolutions, will also be

disruptive. The energy system is the foundation of industrialized economies, and it needs to be overhauled to phase out fossil fuels within a few decades. Huge industries like coal and oil will have to contract, and then disappear. And agriculture, transportation, and other sectors will need to change radically to become more sustainable and resilient. The challenge for politicians, then, is clear: to devise fair policies that protect people from the inevitable shocks. One idea with significant potential is a Citizen’s Fund, which would follow a straightforward fee-and-dividend equation. Companies that emit greenhousegas emissions or extract natural resources would pay fees into the fund, which would then distribute equal payments to all citizens, creating an economic cushion during a period of transformation and beyond. This is not just an idea. In 1976, the Republican governor of Alaska, Jay Hammond, established the Alaska Permanent Fund, which charges companies a fee to extract oil and then disburses the proceeds equally to all the state’s citizens. In 2021, each eligible Alaskan received $1,114 –

EDITOR: BENSON AFFUL editor@business24.com.gh | +233 545 516 133.

not as a “welfare payment” but as a dividend from a state commons (in this case, a finite supply of oil). The largest dividend ever paid was during Republican Sarah Palin’s governorship in 2008, when every Alaskan enjoyed a windfall of $3,269. In 2017, James A. Baker and George P. Shultz, two former Republican secretaries of state, proposed a similar plan for the whole United States, estimating that fees on carbon emissions would yield a dividend of $2,000 per year to every US household. With backing from 3,500 economists, their scheme has broad appeal not just among companies and environmentaladvocacy groups but also (and more incredibly) across the political aisle. The economics is simple. A fee on carbon drives down emissions by driving up the price of polluting. And though companies would pass on these costs to consumers, the wealthiest would be the hardest hit, because they are by far the biggest, fastestgrowing source of emissions. The poorest, meanwhile, would gain the most from the dividend, because $2,000 means a lot more to a low-income household than it does to a high-income household.

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In the end, most people would come out ahead. But given that food- and energyprice shocks tend to hit lowincome cohorts the hardest, why make the dividend universal? The reason is that a policy of this scale needs both broad-based and lasting support, and people are far more likely to support a program or policy if there is at least something in it for them. Moreover, a Citizen’s Fund is not just a way to drive down emissions and provide an economic safety net for the cleanenergy transition. It would also foster innovation and creativity, by providing a floor of support for the entrepreneurs and risk-takers we will need to transform our energy and food systems. A Citizen’s Fund could also be expanded to include other global commons, including mining and other extractive industries, plastics, the ocean’s resources, and even knowledge, data, and networks. All involve shared commons – owned by all – that are exploited by businesses that should be required to pay for the negative externalities they create. Of course, a universal basic dividend is not a panacea. It must be part of larger plan to build societies that are more resilient to shocks, including through greater efforts to redistribute wealth by means of progressive taxation and empowerment of workers. To that end, Earth4All, an initiative I co-lead, is developing a suite of novel proposals that we see as the most promising pathways to build cohesive societies that are better able to make long-term decisions for the benefit of the majority. Our most important finding is perhaps the most obvious, but it is also easy to overlook. Whether we do the bare minimum to address the grand challenges or everything we can to build resilient societies, disruption and shocks are part of our future. Embracing disruption is thus the only option and a Citizen’s Fund becomes an obvious shock absorber.