Business24 Newspaper 6 June 2022

MON DAY, JU N E 6 , 202 2

NEWS FOR B U SINESS LEA DERS

BUSINESS24.COM.G H

A gallon of petrol to sell above GH¢45 in June, IES predicts

By Fritz Moses

Dollar dominance and the rise of nontraditional reserve currencies

By Serkan Arslanalp, Barry Eichengreen and Chima Simpson-Bell

//MORE ON PAGE 4

COVID, war in Ukraine slow progress toward universal energy access – World Bank

MD of GCB awarded CEO of The Year, Banking

//MORE ON PAGE 3

//MORE ON PAGE 5

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News/Editorial

THEBUSINESS24ONLINE.COM

Private sector must own the AfCFTA! Africa’s social and economic transformation agenda has been significantly boosted with the take-off of the single continental market.

Government and state actors in the trade and export sectors have lined up robust and measured interventions to build the competitiveness of the business community to take advantage of the enormous opportunities it has to offer.

It is now up to the local business community to understand the market, the requirements and what it would take to enter these markets.

There are certain sectors that have already seen the light. For example, businesses that are into high value manufacturing have already starting setting up business hubs in other parts of Africa.

These businesses are expected to lead the path on this sustainable economic journey toward continental integration whilst dragging along the bulk of Ghana’s private sector businesses,

specifically the micro, small and medium enterprises.

The Africa Continental Free Trade Area was established to create structures that would enable cost-efficient free movement of goods and services, and it is up to traders themselves to drive the trade.

“AfCFTA has given us the opportunity to thrive in other markets, find those markets, find business partners and explore means of staying in those markets. AfCFTA is only reducing the barriers that would hitherto disable you from doing so,” a trade expert Dode Seidu, aptly reiterated in his recent engagement with the business community.

The AfCFTA is not just a traditional trade agreement but a reliable chance for Africans to lift ourselves and for that matter we have to make sure that opportunities of the market are well explored to the betterment of the continent.

A gallon of petrol to sell above gh¢45 in June, IES predicts

By Fritz Moses

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The Institute for Energy Security (IES) has projected a rise in price of Gasoline (Petrol) ranging from 5percent to 9percent over current price, but expects some form of stability in the prices of Gasoil (Diesel) and liquefied petroleum gas (LPG).

The 5.49 and 4.13 percentage drops in the prices of Gasoil and LPG respectively on the international market may not necessarily lead to a reduction at local retail outlets as most marketers will look to maintain their prices to offset the losses from the depreciation of the Cedi.

On the back of the Cedi’s depreciation and the 11.05% jump in the price of Gasoline on the international fuel market, Gasoline in Ghana is set to sell above Gh¢10.00 per litre, which translates into Gh¢45 per gallon. Meanwhile the price of Gasoil may cross the Gh¢12.00 per litre mark (Gh¢54.00 per gallon) across most OMCs in spite of the drop in price on the world market, owing to the decline in the value of the Cedi against the greenback.

Local fuel market performance Prices of fuel on the local market saw significant increases in the just ended Pricing-window as predicted by the institute (IES). The price of Gasoil and Gasoline increased by about 5% on average terms for both products.

Some Oil Marketing Companies (OMCs) however increased their prices marginally to maintain their market share. Per the IES Marketscan, the current national average price is pegged at Gh¢9.75 per litre, and Gh¢11.71 per litre for Gasoline and Gasoil respectively.

This is an increase of 5.06% on

the previous average per litre price of Gh¢9.28 for Gasoline, and a 5.30% increase over the previous Gasoil average price of Gh¢11.12 per litre.

For the window under assessment, the IES Marketscan picked Benab Oil, Zen Petroleum, and Goodness Oils as the OMCs with the least-priced fuel on the local market, with Total, Shell/ Vivo, and Sel, being picked as OMCs with the highest-priced fuel on the downstream petroleum market.

World oil market Price of the international benchmark Brent, stayed largely beyond the $110 per barrel mark for the most part of the window closing near $120 per barrel for the window under assessment. Brent price averaged $111.875 per barrel, representing a 3.94% increase over the previous window’s average price of $107.63 per barrel.

Prices of oil have over the window under review seen jumps that have been influenced largely by four main market movers. One is the rising demand across the world and, in Europe and the Americas especially as summer nears.

The second factor has also been the fall in supply, which has been aided by the decline in Russian exports to the European region as a result of sanctions and caution placed on trading with Russia for its invasion of Ukraine. According to the draft resolution, “the sixth package of sanctions against Russia will cover crude oil, as well as petroleum products, delivered from Russia into Member States, with a temporary exception for crude oil delivered by pipeline.”

Third, the United States of America’s inventory build has declined due to its reliance on reserves to offset the catastrophic impact of Russian oil exports ceasing on the global energy space. For the first time since August 2021, the US refinery intake surpassed 16 million barrel per day.

And lastly, for bullish oil traders the hope that China would soon lift its COVID-related restrictions to prop demand could yield to an increase in prices as the previous supply issues linger.

World fuel market The various finished petroleum products as monitored on Standard & Poor’s (S&P’s) Platts platform within the past window experienced some increments. Gasoline price jumped by 11.05%, from its initial price of $1138.23 per metric tonne to the end date price of $1264.00 per metric tonne. The price of Gasoil saw a drop of $63.71 per metric tonne (5.49%), from an earlier price of $1159.98 per metric tonne to its present price of $1096.27 per metric tonne. The price of LPG too closed the window lower at $857.61 per metric tonne from an earlier price of $894.53 per metric tonne, representing a 4.13% reduction over the period.

Local forex IES Economic Desk’s analysis of the foreign exchange (Forex) market over the last two weeks revealed that the Cedi experienced some depreciation in value against the US Dollar. The Ghana Cedi depreciated by a marginal 0.66% from the previous rate of Gh¢7.927 to the current rate of Gh¢7.980 to the US Dollar.

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MONDAY, JUNE 6, 2022

COVID, war in Ukraine slow progress toward universal energy access – World Bank The COVID-19 pandemic has been a key factor in slowing progress toward universal energy access. Globally, 733 million people still have no access to electricity, and 2.4 billion people still cook using fuels detrimental to their health and the environment. At the current rate of progress, 670 million people will remain without electricity by 2030—10 million more than projected last year.

The 2022 edition of Tracking SDG 7: The Energy Progress Report shows that the impacts of the pandemic, including lockdowns, disruptions to global supply chains, and diversion of fiscal resources to keep food and fuel prices affordable, have affected the pace of progress toward the Sustainable Development Goal (SDG 7) of ensuring access to affordable, reliable, sustainable and modern energy by 2030. Advances have been impeded particularly in the most vulnerable countries and those already lagging in energy access. Nearly 90 million people in Asia and Africa who had previously gained access to electricity, can no longer afford to pay for their basic energy needs.

The impacts of the COVID-19 crisis on energy have been compounded in the last few months by the Russian invasion of Ukraine, which has led to uncertainty in global oil and gas markets and has sent energy prices soaring.

Africa remains the least electrified in the world with 568 million people without electricity access. Sub-Saharan Africa’s share of the global population without electricity jumped to 77 percent in 2020 from 71 percent in 2018 whereas most other regions saw declines in their share of the access deficits. While 70 million people globally gained access to clean cooking fuels and technologies, this progress was not enough to keep pace with population growth, particularly in SubSaharan Africa.

The report finds that despite continued disruptions in economic activity and supply chains, renewable energy was the only energy source to grow through the pandemic. However, these positive global and regional trends in renewable energy have left behind many countries most in need of electricity. This was aggravated by a decrease in international financial flows for the second year in a row, falling to USD 10.9 billion in 2019.

SDG 7 targets also cover energy efficiency. From 2010 to 2019, global annual improvements in energy intensity averaged around 1.9 percent.

This is well below the levels needed to meet SDG 7’s targets and to make up for lost ground, the average rate of improvement would have to jump to 3.2 percent.

In September 2021, the United Nations High-Level Dialogue on Energy brought together governments and stakeholders to accelerate action to achieve a sustainable energy future that leaves no one behind. In this context, the SDG 7 custodian agencies, the International Energy Agency (IEA), the International Renewable Energy Agency (IRENA), the United Nations Statistics Division (UNSD), the World Bank, and the World Health Organization (WHO), as they launch this report, are urging the international

community and policymakers to safeguard gains toward SDG 7; to remain committed to continued action towards affordable, reliable, sustainable, and modern energy for all; and to maintain a strategic focus on countries needing the most support.

Key highlights on SDG 7 targets Access to electricity. The share of the world’s population with access to electricity rose from 83 percent in 2010 to 91 percent in 2020, increasing the number of people with access by 1.3 billion globally. The number without access declined from 1.2 billion people in 2010 to 733 million in 2020. However, the pace of progress in electrification has slowed in recent years which may be explained by the increasing complexity of reaching more remote and poorer unserved populations and the unprecedented impact of the COVID-19 pandemic. Meeting the 2030 target requires increasing the number of new connections to 100 million a year. At current rates of progress, the world will reach only 92 percent electrification by 2030.

Between 2010 and 2020, every region of the world showed consistent progress in electrification, but with wide disparities. Electricity access in Sub-Saharan Africa rose from 46 percent in 2018 to 48 percent in 2020, but the region’s share of the global access deficit rose from 71 percent in 2018 to 77 percent in 2020, whereas most other regions, including Central and Southern Asia, saw declines in their share of the access deficits. SubSaharan Africa accounted for more than three-quarters of the people (568 million people) who remained without access in 2020.

Clean cooking. The share of the global population with access to clean cooking fuels and technologies rose to 69% in 2020, an increase of 3 percentage points over last year. However, population growth outpaced much of the gains in access, particularly in SubSaharan Africa. As a result, the total number of people lacking access to clean cooking has remained relatively stagnant for decades. Between 2000 and 2010, this number was close to three billion people, or one-third of the global population. It dropped to around 2.4 billion in 2020. The increase was primarily driven by advancements in access in large, populous countries in Asia. In contrast, the access deficit in Sub-Saharan Africa has nearly doubled since 1990, reaching a total of around 923 million people in 2020.

A multisectoral, coordinated effort is needed to achieve the SDG 7 target of universal access to clean cooking

by 2030. It is critical that the global community learns from the successes and challenges faced by countries that have attempted to design and implement clean household energy policies.

Renewables. Ensuring universal access to affordable, reliable, sustainable, and modern energy implies accelerated deployment of renewable energy sources for electricity, heat, and transport.

Although there is no quantitative target for SDG 7.2, custodian agencies agree that the share of renewable energy in total final energy consumption (TFEC) needs to rise significantly, even though renewable energy consumption did continue to grow through the pandemic, overcoming disruptions to economic activity and supply chains.

While the share of renewable capacity expansion rose by a record amount in 2021, the positive global and regional trajectories mask the fact that countries where new capacity additions lagged were those most in need of increased access. Moreover, rising commodity, energy and shipping prices, as well as restrictive trade measures, have increased the cost of producing and transporting solar photovoltaic (PV) modules, wind turbines, and biofuels, adding uncertainty for future renewable energy projects. Renewable shares need to reach well over 30 percent of TFEC by 2030, up from 18 percent in 2019, to be on track for reaching net-zero energy emissions by 2050. Achieving this objective would require strengthening policy support in all sectors and implementing effective tools to further mobilize private capital, especially in least-developed countries, landlocked developing countries, and small island developing countries.

Energy efficiency. SDG 7.3 aims to double the global rate of annual improvement in primary energy intensity—the amount of energy used per unit of wealth created—to 2.6 percent in 2010–30 versus 1990–2010.

From 2010 to 2019, global annual improvements in energy intensity averaged around 1.9 percent, well below the target, and the average annual rate of improvement now has to reach 3.2 percent to make up for lost ground. This rate would need to be even higher—consistently over 4 percent for the rest of this decade—if the world is to reach net-zero emissions from the energy sector by 2050, as envisioned in the IEA’s Net Zero Emissions by 2050 Scenario. Early estimates for 2020 point to a substantial decrease in intensity improvement because of the COVID-19 crisis, as a result of a higher

share of energy-intensive activities in the economy and lower energy prices.

The outlook for 2021 suggests a return to a 1.9 percent rate of improvement, the average rate during the previous decade, thanks to a sharper focus on energy efficiency policies, particularly in COVID-19 recovery packages.

However, energy efficiency policies and investment need to be scaled up significantly to bring the SDG 7.3 target within reach.

International Financial Flows.

International public financial flows to developing countries in support of clean energy decreased for the second year in a row, falling to USD 10.9 billion in 2019, despite the immense needs for sustainable development in most countries and growing urgency of climate change. The amount was down by nearly 24 per cent from the previous year and may be worsened by the pandemic in 2020. Overall, the level of financing remains below what is needed to reach SDG 7, particularly in the most vulnerable and least developed countries.

The decrease was seen in most regions, with the only exception in Oceania, where international public flows rose by 72 percent. The bulk of decreases were concentrated in Eastern and South-eastern Asia, where they fell 66.2 percent; Latin America and the Caribbean, where they dropped by 29.8 percent; and Central and Southern Asia, where they declined by 24.5 percent.

Although the private sector finances most renewable energy investments, public finance remains key to attract private capital, including for creating an enabling environment for private investments, developing the needed infrastructure, and addressing perceived and real risks and barriers for investments in the energy transition. International public flows to countries that lack the financial resources to support their energy transitions constitute a large part of the international collaboration that will be needed for a global energy transition that would bring the world closer to achieving all SDGs. Indicators and data for tracking progress. Tracking global progress for SDG 7 targets requires high-quality, reliable and comparable data for informed and effective policymaking at the global, regional, and country levels. The quality of data has been improving through national and international cooperation and solid statistical capacity. National data systems improve as countries establish legal frameworks and institutional arrangements for comprehensive data collection for energy supply and demand balances; implement end-user surveys (e.g., households, businesses, etc.); and develop qualityassurance frameworks. However, after the pandemic hit and disrupted the rate of progress toward Goal 7, more investment in quality statistics is needed to know where we stand and how to get back on track. This is especially important for developing countries, particularly Least Developed Countries, to inform their national energy policies and strategies to ensure no one is left behind.

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MONDAY, JUNE 6, 2022

Dollar dominance and the rise of nontraditional reserve currencies

By Serkan Arslanalp, Barry Eichengreen and Chima Simpson-Bell The US dollar has long played an outsized role in global markets.

It continues to do so even as the American economy has been producing a shrinking share of global output over the last two decades.

But although the currency’s presence in global trade, international debt, and non-bank borrowing still far outstrips the US share of trade, bond issuance, and international borrowing and lending, central banks aren’t holding the greenback in their reserves to the extent that they once did.

As the Chart of the Week shows, the dollar’s share of global foreignexchange reserves fell below 59 percent in the final quarter of last year, extending a two-decade decline, according to the IMF’s Currency Composition of Official Foreign Exchange Reserves data.

In an example of the broader shift in the composition of foreign exchange reserves, the Bank of Israel recently unveiled a new strategy for its more than $200 billion of reserves. Beginning this year, it will reduce the share of US dollars and increase the portfolio’s allocations to the Australian dollar, Canadian dollar, Chinese renminbi and Japanese yen.

As we document in a recent IMF working paper, the reduced role of the US dollar hasn’t been matched by increases in the shares of the other traditional reserve currencies: the euro, yen, and pound. Moreover, while there has been some increase in the share of reserves held in renminbi, this accounts for just one quarter of the shift away from dollars in recent years, partly due to China’s relatively closed capital account. Moreover, an update of data referenced in the working paper shows that, as of the end of last year, a single country—Russia— held nearly a third of the world’s renminbi reserves.

By contrast, the currencies of smaller economies that haven’t traditionally figured prominently in reserve portfolios, such as the Australian and Canadian dollars, Swedish krona and South Korean won, account for three quarters of the shift from dollars.

Two factors may help to explain the movement into this set of currencies: • These currencies combine higher returns with relatively lower volatility. This appeals increasingly to central bank reserve managers as foreign exchange stockpiles grow, raising the stakes for portfolio

allocation.

• New financial technologies— such as automatic marketmaking and automated liquidity management systems—make it cheaper and easier to trade the currencies of smaller economies.

importance of this factor can be questioned. The nontraditional currencies tend to float. In practice, they fluctuate widely against the dollar. And their issuers have rarely if ever drawn on their bilateral swap lines with the Fed. A regression analysis

In some cases, the issuers of these currencies also have bilateral swap lines with the Federal Reserve. This, it can be argued, creates confidence that their currencies will hold their value against the dollar.

At the same time, the

shows that having a Fed swap line is associated with a 9 percentage point increase in the dollar share of the recipient’s reserves. This may indicate that swap lines are an imperfect substitute for actual reserves.

A more plausible explanation is

that these nontraditional reserve currencies are issued by countries with open capital accounts and track records of sound and stable policies. Important attributes of reserve currency issuers include not just economic weight and financial depth, but also transparent and predictable policies.

In other words, the stability of the economy and policy decisions matter for international acceptance.

A regression analysis of global reserve currency shares confirms that a higher economic risk premium, measured by the cost of using credit derivatives to insure against default, reduces a currency’s share in global reserves. Evidently, holders favor the currencies of countries known for good governance, economic stability and sound finances.

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MONDAY, JUNE 6, 2022

MD of GCB awarded CEO of The Year, Banking The Managing Director of GCB Bank PLC, Mr Kofi Adomakoh, has been adjudged CEO of the Year, Banking, for 2021. The award was presented to him at the 6th CEO Summit held at the Kempinski Gold Coast City Hotel, Accra, on Monday, May 30 2022, for his sterling performance in the banking sector.

The summit held under the theme - “Digital leadership for a digital economy, leading digital business and government transformation, a privatepublic sector CEO dialogue and Learning” brought together over 400 CEOs, experts and key stakeholders from various sectors of the economy.

Mr Adomakoh, who was appointed Managing Director of the GCB Bank in November 2020, and with the support of the Board of Directors, developed a revised medium-term strategy with the goal to make GCB Bank PLC the most dominant Bank in Ghana.

At the end of the 2021 financial year, he had led the Bank to achieve profit before income tax of GH¢832 million, representing

a year-on-year growth of 36.2 per cent. The Bank’s total assets also increased GH¢18.4 billion in 2021, representing a growth of 19.1 per cent despite the difficult economic conditions occasioned by the Covid-19 pandemic.

Commenting on the award, Mr Kofi Adomakoh e x p r e s s e d appreciation for the recognition and dedicated the award to the Bank’s hard-working staff and loyal customers.

“My role is to provide the needed executive leadership for GCB Bank PLC but without the support and guidance of my Board of Directors, the dedication and experience of my Management and Staff, we would not have been able to achieve this sterling performance for 2021” he stated.

“Our strategic ambition is anchored around three strategic pillars of revenue growth and profitability, operational excellence, people and talents.

We will grow our market share to dominate the Retail and Wholesale Banking segments” he explained.

Mr Adomakoh also highlighted the crucial role of digitization in Banking. He stressed that digitization is a critical enabler and a pivotal element of the Bank’s strategic ambition to dominate the market. He also explained the efforts the Bank is adopting to improve its services to customers by identifying processes that can be re-engineered and digitalised to eliminate human intervention and make the bank nimbler and more responsive.

He added that consequent to these initiatives, the Bank has also upgraded its core banking system from version 12.02 to 14.3 which has resulted in a remarkable improvement in the performance of our systems and in providing better services to our customers.

“We have also strengthened organizational rigour and brought in experiences human resources to join our management team to execute our strategy.”

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MONDAY, JUNE 6, 2022

World Environment Day marked in Obuasi with clean up exercise AngloGold Ashanti, Obuasi Mine has partnered the Environmental Protection Agency to organise a massive clean exercise in Obuasi to mark 2022 World Environment Day. This year’s edition of World Environment Day was under the theme ‘ Only one earth”.

The clean-up exercise was preceded by a float through the principal streets of Obuasi with placards bearing inscriptions, ‘ Let’s fight plastic pollution

protection of the environment.

Since its inception, it has been a platform for raising awareness on environmental issues such as marine pollution, overpopulation, global warming, sustainable consumption and wildlife crime.

Interacting with the media at the sidelines of the clean-up exercise, an Environment Superintendent with AngloGold Ashanti David Adade- Boateng said AngloGold Ashanti was committed to its value of respecting the environment

together, ‘Reduce plastic use, ‘ We have only one earth, ‘ plastic kills ask the fishes, ‘say no to nonnecessary Instituted in 1973, World Environment Day (WED) is celebrated annually on 5 June to create awareness for the

and making the community better off because of AGAG’s presence, therefore, conducting its operations in a sustainable and environmentally responsible manner.

He revealed that to demonstrate their commitment towards a

clean and healthy environment AngloGold Ashanti in partnership with the Malaria control program (AGAMAL) introduced the Keeping Obuasi Clean Campaign (K.O.C.C) in 2019. The campaign hinges on a monthly clean-up exercise, provision of waste bins at vantage places, sanitation education in schools and formation of sanitation clubs.

He admonished Ghanaians to own and be accountable for their immediate environment adding that this presents a panacea to environmental pollution.

Again, Mr. AdadeBoateng appealed to the Local Assembly to continue and strengthen strict enforcement of byelaws on the Environment to ensure that offenders are properly dealt with. “ We need to enhance the enforcement of environmental bye-laws to protect ourselves from environmental pollution, which is costing the nation a fortune and reducing the quality of our environment and impacting life expectancy of Ghanaians.

In a Press release, the Obuasi Area Head of the Environmental Protection Agency (EPA), Prempeh Adarkwa Yiadom bemoaned the negative impact of some human activities on the environment. He said human activities such as Noise making, illegal or irresponsible mining and Plastic waste

pollution have adverse effects on the environment. “ Together with the good people of Ghana, we are advocating for drastic measures that can be implemented to offset or minimise the impact of some of these activities in the Environment “, he added.

Touching on the devastating effects of plastic pollution on the environment, Mr. Adarkwa Yiadom said to mitigate the effects of plastic pollution, ‘ Beat Plastic Pollution ‘ was chosen as the national slogan for the (WED) celebrations.

He further recommended consumer- based actions to reduce plastic pollution and encouraged the public to refuse non-necessary plastic items, reduce single- use plastics, replace plastic items with reusable and/ or alternative products with lower environmental impact and correctly dispose of items such as water sachets.

Fuseina Imoro, the Obuasi Municipal Environmental Health officer encouraged Ghanaians to turn out in their numbers during clean up exercises.

She said though the Municipal Assembly has increased its public awareness drive to ensure a clean environment, it will strictly enforce its bye-laws to deal with those who pollute the environment.

Signed Sampson Manu (0241908029)

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MONDAY, JUNE 6, 2022

Australian High Commissioner to Ghana applauds government Ghana’s gold extractive industry has matured over the decades, and we applaud the government’s measures to develop local capacity, said Gregory Andrews, Australian High Commissioner to Ghana.

He said his country was proud to work hand in hand with Ghana, while it developed the right structures and systems to ensure mining revenues led to economic development and delivered improvements in the living standards of the local people.

Addressing a special session of the Tarkwa-Nsuaem Municipal Assembly’s meeting held at Ahwetieso, Mr Andrews in a speech read on his behalf said, over the years, Australian mining and mining services companies had contributed directly to the sector, through job creation, knowledge and skills transfer, revenue generation and

corporate social responsibility as well as community development projects.

More importantly, Australia prides itself as a key partner for the Ghanaian government in promoting fair, sustainable, and environmentally friendly mining practices that translate into shared wealth and socioeconomic development for mining communities, he stated.

According to the High Commissioner, “Those linkages were amplified when the Minister for Lands and Natural Resources, Mr Samuel Abu Jinapor addressed a crowd of investors at the Mining Indaba conference in Cape Town two weeks ago, during an Australian Government hosted event.

It was our pleasure to support the Minister’s call for foreign investment in developing new minerals in Ghana. Things to

stable governance and a highly educated workforce. We believe the right platforms exist to build on the success of Ghana’s gold extraction experience”.

He said Australia through its various programmes such as scholarship awards, the former International Mining for Development Centre and its successor, the minerals and energy for Development Alliance, the Australia Africa partnership facility and the cadastral administration system at the Minerals Commission was proud to have contributed over the years to the development of mining in Ghana.

Mr Andrews pointed out that “We have also supported skills development in the sector by providing over 500 miningrelated courses, scholarships and fellowships in the last decade, including 375 short course awards,

delivered by Universities in Africa and Australia on extractive governance through their studies and experiences in Australia our African alumni transfer best practices, knowledge and cuttingedge skills to the mining industry to the huge benefit of their home countries”.

He emphasized that in Ghana they were encouraged by the government’s commitment to implement the economic and social reforms required to produce jobs and growth.

“It is not by any means an easy balance to attract investment, while at the same time ensuring a fair return for the Nation under whose soil the minerals lie, but it can be done and Australia is a good example of where this can be achieved”, he further said.

Source: GNA

JAK Foundation courts exhibitors for flagship Youth in Agribusiness Festival

By Reuben Quainoo

The John A. Kufour Foundation ( JAKF) launched the maiden edition of the Youth in Agribusiness festival to establish the Youth in Agribusiness Information hub in Ghana.

The festival was under the theme; “Youth in Agribusiness in Ghana: the story so far and the way forward” will be one-stop-

shop where all the necessary information needed for the development and sustainability of agribusiness could be accessed by the young individuals in Ghana.

“The festival is designed to showcase the outstanding development of young people within the agribusiness sector. It seeks to celebrate distinguished

young agribusiness practitioners by providing the platform for them to share their success stories.

“It is therefore important to provide the platform to share the experiences, learn lessons and network along the value chain which will serve as an inspiration to generate interest for both employed and unemployed youths, more especially for those who do not see agribusiness as an attractive business venture will be exposed to the achievement of youth in Agribusiness,” the Foundation said.

As part of the activities for the maiden Youth in Agribusiness Festival, there will be an exhibition of agribusiness products and services. All interested persons and companies are encouraged to register. Click on the link https:// bit.ly/3smpAmQ or scan the flyer to access the registration forms.

“The Youth in Agribusiness Festival is an initiative of the John A. Kufuor Foundation to celebrate the contributions and achievements of young agribusiness entrepreneurs in Ghana and Africa. The 3-day event is scheduled from 27th to 29th July, 2022 at the Jubilee Park and the Prempeh Assembly Hall in the Ashanti region, Kumasi.

“Activities lined up for the Festival includes Exhibition of Agribusiness Products and Services, Innovative Agrifinancing and investment forum, Training on emerging agribusiness enterprises for youth engagement, Networking and Business Linkage session and Production and premiering of documentary on Youth in agribusiness in Ghana.

“It promises to be the biggest and exciting agri-show to ever happen in Ghana considering the significant roles played by young people in the agribusiness valuechain towards the transformation of Ghanaian economy.

“The event welcomes participation of all individuals especially young people aged between 18 and 35 who are engaged in various agribusiness endeavors” said Mr. Jeffrey Agyemang-Duah, Convener of the Youth in Agribusiness Festival.

To partner or sponsor the festival, please contact the convener on 0241973217 and/or at jeffrey.duah@yahoo.co.uk. For more information, check www. kufuorfoundation.org and our social media handles @ youth in agribusiness festival on Facebook, twitter, LinkedIn and Instagram.

MONDAY, JUNE 6, 2022

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MONDAY, JUNE 6, 2022

Huawei shows that next-gen data centres are sustainable and smart Huawei revealed the definition of the Next-Generation Data Center Facility, and unveiled its new PowerPOD 3.0 data centre power supply system. The new rollouts, not only reaffirms Huawei’s commitment to building low-carbon, smart data centres, it also underscores the fact that the next generation of data centres will be sustainable, simplified, autonomous driving, and reliable.

With the continuous development of fields such as 5G, artificial intelligence (AI), and Big Data, data centres will only grow in scale and importance.

But at the same time, there is growing pressure on data centres to use less electricity and operate more sustainably, especially as economies in Africa and other regions look to decarbonise.

Critically, they will have to do so without compromising on performance or drastically increasing their physical footprints.

The PowerPOD 3.0 enables data centres to do all of these things.

It reduces the footprint of data centres by 40%, cuts their energy consumption by 70%, shortens

the delivery period from 2 months to 2 weeks, and lowers the service level agreement (SLA) fault rate by 38%.

“At Huawei, we are ready and willing to do to contribute to green development in Africa,” says Jason Xia Hesheng, President of Huawei Digital Power Southern Africa.

“We have a proud tradition of ensuring that all our technologies are sustainable while pushing the boundaries of innovation. It will allow customers to pursue some of the most transformative technologies such as 5G and AI while protecting the planet.”

Africa in particular stands to benefit from systems such as the PowerPOD 3.0. Energy in particular presents a major challenge in Africa. Data centres consume anywhere between 2%-3% of the world’s power annually. This adds an additional strain on African countries’ grids. Additionally, the average annual Power Usage Effectiveness (PUE) of data centres in Africa is 1.8, meaning that they aren’t as efficient as they could be.

Something like the PowerPOD 3.0 could go a long way to bringing

that score closer to the ideal of 1.0.

In addition, the system’s ability to bring down O&M costs could also prove significant, given that the initial construction of data centre accounts for just a third of its costs, with the other two-thirds coming from O&M. With Africa set to have more than 600-million internet users and 360 million intelligent endusers by 2025, it will be critical that it not just use systems such as PowerPOD 3.0 to make its existing data centres more efficient, but also as a way of embracing the

next generation of data centres, characterized by Sustainability, Simplification, Autonomous Driving and Reliability.

As Africa looks to balance population growth, urbanisation, and the desire to move forward on smart city initiatives with commitments to decarbonise, these kinds of next-generation data centres will be crucial. As the “heart” of the data centre, the power supply system should integrate and innovate all devices in the power supply chain.

WISTA pushes for gender diversity in Ghana’s maritime sector Executive Committee members of the Women in Shipping and Trading Association (WISTA) International have paid a working visit to the ministries of transport and trade and industry as part of activities marking a three-day mid-year ex-co meeting in Accra.

The courtesy call on the two government institutions was to appreciate the respective ministries for the continual support to the activities of its local chapter WISTA Ghana and to have further deliberations of promoting the advancement of women in Ghana’s maritime industry.

“As an association, our goal is to promote diversity and inclusion in the maritime sector as a means of strengthening the growth and sustainability of an everchanging industry as a result of technological advancements and environmental concerns.

“We believe that diversity in general, and most specifically the participation of women, is a key factor to getting it right in terms of having a better future

for maritime,” President of WISTA International, Despina Panayiotou Theodosiou, said in an meeting with deputy Transport Minister, Hassan Tampuli.

According to the WISTA president, the association has partnered with the International Maritime Organisation (IMO) and member states to build capacity of women through scholarships that provide soft skills for women career enhancements across the maritime value chain.

She added: “WISTA Ghana is very active and has been doing some substantial and constructive work in promoting and building up women in the country and across the region. It is therefore a very valued member of our association.”

Deputy Transport Minister, Hassan Tampuli, applauded the leadership of WISTA International for steering the growth of the global association through an inclusive approach and fair representation from the various sub-sectors of the maritime industry.

“As a ministry we champion the development of women and we are very happy to see women grow especially in the maritime domain. The structure of WISTA Ghana is a mix of professionals from diverse backgrounds who can share perspectives for the growth of women in the maritime,” he noted.

The minister further emphasized the need to train women to take up leadership or frontline roles in the blue economy and welcomed WISTA’s scholarship arrangement for women who are seeking to build a career in maritime and trade.

“We have absolute confidence in our women, here in Ghana and

globally, and we believe you’re doing the right thing because when the women grow, the entire world benefits,” he added.

At the Ministry of Trade and Industry, the meeting focused on existing opportunities and gender-specific policies for women-owned enterprises and women in trade.

Deputy sector minister, Nana Ama Dokua Asiamah-Adjei, pledged to collaborate with WISTA in their mutual quest to build the competence of women to close existing leadership gaps in the trade sector by empowering women to push for whatever they seek to achieve.

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| FEATURE

MONDAY, JUNE 6, 2022

Europe’s oil embargo is not enough Vladimir Putin needs petrodollars, and he needs them now. Many expected Russia’s president to issue a formal declaration of war on Ukraine, a move that would permit the full mobilization of Russia’s reserve forces. But while Putin may want to send more soldiers to Ukraine, he cannot afford to do so. Will the European Union’s newly announced oil embargo force him to wind down the invasion?

Already, the Kremlin has toned down its propaganda. There is no more talk of taking Kyiv. Putin’s only goal now, apparently, is to occupy the eastern Donbas region. But even there, Putin is not guaranteed victory, as that is where Ukraine has launched its so-called Joint Forces Operation, which includes its best-trained military units – increasingly armed with advanced Western military equipment.

Russia, meanwhile, has lost much of its modern military equipment, and Western sanctions have left it unable to replenish its stocks. With few options, Russia is now unpacking Soviet-era tanks.

The only way Putin can make up for the lack of equipment is to send more soldiers. But drafting new conscripts is an unpopular idea, so Putin has resorted to paying people to fight for Russia – and no pittance, either. Recruits are now reportedly receiving $3,000-$5,000 per month.

But, the recent decision to scrap the age limit for army recruits suggests that even the prospect of earning pay that is an order of magnitude higher than the average wage in the median

Russian region is not attracting enough fighters.

Recently published budget data from Russia’s finance ministry suggests that Putin can hardly afford to cover the war’s mounting costs.

The data confirm, first, that the war has been expensive, with military spending having increased by almost 130% last month, to 630 billion rubles ($10.2 billion), or 6% of annual GDP on a prorated basis.

The data also show that Russia ran a fiscal deficit of more than 260 billion rubles in April, or 2.5% of GDP when prorated to annual figures.

While global oil prices are very high, Russia has been selling its oil at a huge discount – accepting $70 per barrel for Urals crude in recent weeks, 30% below the market price – while overall output is set to decline by 10% this year. Meanwhile, non-hydrocarbon revenues have plummeted, leaving oil and gas taxes accounting for more than 60% of fiscal revenues, compared to less than 40% a year ago.

Putin’s dependence on petrodollars means that, by announcing an embargo on about 90% of Russian oil imports within the next 6-8 months, the European Union is hitting Russia where it hurts. Putin is now all but certain to face a major fiscal crisis within a year, making it difficult to sustain his war in Ukraine, let alone invade another country.

The problem is that the embargo will help Putin in the short term. The mere announcement of it has already caused oil prices to spike. That is why Europe should complement its oil embargo with additional, immediate

measures. Two options stand out.

The first – which Ricardo Hausmannproposed immediately after the invasion, and which others have shown can be implemented quickly – is a high tariff on Russian oil imports. This approach makes perfect economic sense. Every euro spent on Russian oil helps Putin finance his violent campaign in Ukraine. This is a “blood externality,” and should be priced accordingly. Part of the amount paid by buyers of Russian hydrocarbons should be transferred to Ukraine as reparations or stored in special escrow accounts until reparations are formally awarded.

But at a time when European households are facing soaring energy costs, there is little political appetite for an oil tax. With this in mind, Italian Prime Minister Mario Draghi has proposed an alternative solution: a price cap. Under this proposal – which the European Council has instructed the Commission to assess – Western countries would pay a lower price for Russian oil and gas, and impose secondary sanctions on third parties that pay Russia more.

A price cap could be implemented immediately – say, at $70 per barrel – and lowered by about $10 each month the war continues. Yes, Putin could refuse to sell oil at this price.

But, given that he is already desperate enough to sell to China and India at steep discounts, and today’s energy prices far exceed production costs, this seems unlikely.

Instead, Russia would probably continue supplying oil and gas to Western buyers at the capped price,

while buyers like China and India, under threat of sanctions, would have no reason to pay more. This would provide consumers relief from high energy prices and cause Russia’s revenues to decline sharply.

Some might argue that price caps distort incentives – in this case, the incentive to adopt renewables.

But this argument applies only to a competitive market. In today’s oil and gas market, prices far exceed marginal costs, and the global oil cartel OPEC+ (which includes Russia) has only recently agreed to increase production in July and August. Russian gas supplier Gazprom was likely manipulating prices in Europe even before the war. Such monopolistic behavior warrants a price cap.

Another frequent argument against a price cap is that it may spur a black market. This is a real risk.

Already, European energy companies have begun combining Russian petroleum products with others – a “Latvian blend” – so that they can take advantage of lower prices, while claiming not to support Putin’s war machine. But these firms are not currently violating any laws. If a price cap were implemented, they would be. Given public outrage at the war, the West’s commitment to secondary sanctions, and the rise of citizen-led investigations relying on open-source intelligence, it would be very difficult, if not impossible, to get away with such rule-breaking.

The EU’s oil embargo will hurt Putin, but not soon enough. Europe must immediately impose a price cap on Russian oil and gas.

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| GLOBAL ECONOMY

MONDAY, JUNE 6, 2022

Japan’s Digitalization Can Add Momentum for Economic Rebound

By Piyaporn Sodsriwiboon, Purva Khera, and Rui Xu The Japanese economy is recovering from the pandemic as related uncertainty and supply constraints subside and consumption gradually rebounds.

Growth will accelerate to 2.4 percent this year, the fastest in 12 years, and maintain nearly the same pace next year, according to our latest economic projections in April.

Our recent assessment of the world’s third-largest economy credits strong policy support and high vaccination levels. Pentup consumer demand will help support the expansion.

However, the war in Ukraine following a continuing pandemic pose substantial risks to the nearterm outlook. The economy also faces longer-term headwinds from an aging and shrinking population, stagnant productivity growth and major climate change risks.

Japan’s many challenges highlight the importance of efforts to enhance growth that can foster inclusion, reduce inequality, and ensure a sustainable future.

Our study shows that scaling up digital investment, along with full implementation of growthenhancing reforms that increase labor supply and productivity, could boost gross domestic product.

Digitalization, importantly, could provide additional growth momentum.

The pandemic underscored Japan’s uneven embrace of technology. Even though it’s one of the world’s biggest users of industrial robots and home of a major electronics industry, it still lags other economies in adoption of digitalization by businesses (for example, continued reliance on legacy IT systems), government, and the financial sector.

This structural weakness was further underscored by how many employers struggled to make the shift to remote work when the pandemic began, reducing economic output and sapping productivity at a crucial time. Paper-based procedures hindered government responses to the outbreak, delaying the 2020 emergency cash program that aided consumers. Adoption of cashless payments and e-commerce have also lagged.

Accordingly, faster digital transformation with government support would boost productivity and growth. For example, lawmakers last year abolished most of the authorization of documents by Hanko seals, the

personalized ink stamps used for centuries in Japan and similar to those in other Asian nations.

This pivot to electronic signatures from traditional stamps is an important one because it allows for digitalizing administrative procedures that make government more efficient.

Other initiatives include the Digital Agency, a body established in September under the cabinet to speed digitalization of central and local governments and the private sector.

To ensure that this transition is inclusive, policy support should be carefully designed to mitigate any potential harm for unskilled workers. Other key priorities in accelerating adoption of digital financial services include enhancing public

trust by augmenting financial and digital literacy; improving connectivity between different cashless payment platforms; and strengthening data privacy, consumer protection, and cybersecurity.

Greater digitalization, however, will be best if it’s also combined with other growth-enhancing reforms that are important to address Japan’s demographic headwinds.

Bringing more female, older, and foreign workers into the labor force should be a priority.

Increasing training and career opportunities for those without lifetime employment, who are mostly women, will help raise productivity and wages. Better corporate governance and reduced regulation would boost

productivity and investment.

Looking ahead, Japan would need not only stronger growth, but also growth that is environmentally sustainable.

Our study suggests a profound economic transformation built on significant green investments and more reliance on carbon pricing would further support a recovery from the pandemic, while creating a new and clean economic engine for the future. Japan’s commitment to achieve carbon neutrality by 2050 is therefore an important and positive step.

Together, these policy objectives show how Japan can make the most of the disruptions from the pandemic to push through reforms that lift productivity and economic growth.

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| NEWS

MONDAY, JUNE 6, 2022

‘Prioritise integration of traditional authorities for dev’t of communities’

By Eugene Davis

The Mamponghene, Daasebre Nana Osei Bonsu II, has asked government to revisit the active involvement of traditional authorities as a priority policy position for the development of the communities.

Speaking as the chairman at the opening of the 21st Biennial National Delegates Conference of the National Association of Local Authorities of Ghana (NALAG) at the Great Hall of the Kwame Nkrumah University of Science and Technology (KNUST) in Kumasi, he said “Government should have a second look at the active integration of the traditional authorities as a priority policy position for the development of our communities.

Whiles looking at the reforms and the amendments of the 1992 constitution and the local governance Act to bring the needed changes in our local government administration, it’s important to reiterate that structures, process and systems are important to bring the needed results we wanted at our MMDAs but the most important resource in all of these are the people who manages our electoral areas and I mean the Honorable Assembly men and women. Their welfare

and condition of service should be of paramount in all the reforms that are being proposed within the local government system.”

According to him, constitutionally assembly members cannot take double salary in the current state of the ACT but is also not good to leave them worse off in the discharge of their constitutionally mandate roles to serve their community and bring the needed development to better the lives of their people.

There are teachers and other public sector workers who are assembly members and are doing their very best to ensure that they carry the voice of their people to the assembly. It is indeed a fact that the framers of the constitution at the inception stage indicated that the work of the assembly members should be voluntary but are given some allowances when they attend assembly meetings, this practice cannot be sustained if the assembly members are to be effective in the performance of their roles and responsibilities.

The current state where the assembly members are called upon at every challenge that the electoral area faces requires that their remuneration, conditions

of service and the payment of ex gratia should be given the needed attention it deserve.”

The Vice President, Dr. Mahamudu Bawumia,indicated that Metropolitan, Municipal and District Assemblies (MMDAs) should move away from just providing essential services to becoming agents for the development, of their localities.

For him, this can be achieved “by harnessing all the natural, material and human resources within their jurisdiction to bring the needed development, create jobs, reduce poverty, increase income levels and raise the needed Internally Generated Fund (IGF) to complement other sources of funding from central the government.”

“As MMDAs you must reevaluate your local strengths and weaknesses in light of changing roles you have to play to meet the needs of your respective citizens.

We are aware that some MMDAs are already engaged in the process of revitalizing their local economy and I believe others will follow the trail,” he added.

The Minister of Local Government, Decentralisation and Rural Development, Daniel Botwe, also, urged MMDCEs to harmonize and coordinate the implementation of all central government policies.

For instance, he said MMDCEs are required to implement Central Government Budget Statement and Economic Policies.

To ensure cost recovery by the government in providing the infrastructure for the collection of the property rate, he announced that a sharing ratio will be agreed upon with the MMDAs. The Minister attributed the haphazard and uncontrolled developments in MMDAs to the congestion, pollution, and perennial flooding of most towns and cities. As a result, he said all MMDAs are to ensure that the Greening Agenda of Government is implemented to the letter, as a policy measure.

Otumfuo commends Vodafone for leading sustainable development in the Ashanti Region The Asantehene, His Royal Majesty Otumfuo Osei Tutu II, has praised Vodafone Ghana for its enormous support for sustainable development in the Ashanti Region.

According to him, apart from Vodafone’s support for the prestigious Asantehene Open Golf Championship, it has introduced interventions that benefit everyone, especially women and children, for which he commended the company.

Otumfuo Osei Tutu II said this when the senior management team of Vodafone Ghana paid a courtesy call on him at the Manhyia Palace last Friday.

The purpose of the visit was to announce plans to extend the sponsorship of the Asantehene Open Golf Tournament, which Vodafone has sponsored for 5 consecutive years since 2017.

Chief Executive Officer of Vodafone Ghana, Patricia OboNai, who led the delegation,

said her outfit is excited to be sponsoring the Asantehene Open Golf Championship for another year.

She noted that the support of the sport was not only to strengthen Vodafone’s relationship with His Majesty Otumfuo Osei Tutu II and the people of Asanteman but to promote sustainable development in the region through impactful initiatives.

“This year, we have named the month ‘Boa Asanteman’

as we seek to address the key sustainable development needs of the region. Together with His Royal Majesty Otumfuo Osei Tutu II’s Foundation, we will address several issues. These include promoting healthy lives and wellbeing through our Healthfest initiative; reducing maternal mortality with our free ultrasound screening; driving free and inclusive education for everyone through our Instant Schools activations; empowering SMEs

with digital skill training as part of our SME Clinics; and ensuring the environmental sustainability of the region with a tree planting exercise,” she said.

“We wish to inform His Royal Majesty that our 2022 Ashantimonth campaign begins today with this official visit,” she declared.

Otumfuo Osei Tutu II thanked Vodafone for leading sustainable development in the Ashanti region and also for promoting health and education in the region. He urged the organization to continue its good work.

The Asantehene also used the opportunity to charge the Royal Golf Club in Kumasi to ensure that Vodafone gets the needed visibility as the headline sponsor of the Championship. Meanwhile, Otumfuo has encouraged the golfers and the wider community to patronize Vodafone’s products and services.

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| AFRICAN BUSINESS

MONDAY, JUNE 6, 2022

AfDB president calls for more partnerships to build Africa’s social infrastructure

African Development Bank Group President Dr Akinwumi Adesina wrapped up his official visit to Kenya on Friday, meeting with African diplomatic envoys and international development partners in Nairobi. He called for joint collaborative support to help accelerate Africa’s development.

“Africa’s pace of development must be accelerated. We must work together for the continent to prosper, be competitive, and address the challenges facing it,” he said.

Adesina said Africa was the continent being impacted the most from climate change. He said as the world prepared for the next global climate summit (COP27) in Egypt this November, many African countries could still not access green climate financing because they had not developed required national determined contributions and long-term strategies. So far, only three African countries—Benin, Morocco and South Africa—have developed long term strategies.

Adesina told the envoys that the majority of countries that were most vulnerable to the impact of climate change were beneficiaries of the Bank Group’s concessionary arm, the African Development Fund. He said development partner financing, however, remained low and in decline. “The African Development Fund must be financially sustainable to meet the growing development needs of its beneficiaries,” he stressed.

The Bank Group president cited some of the projects financed by the African Development Fund— which he said were transforming lives. He gave the example of the Thwake Multipurpose Water Development Program in Kenya, explaining that this project will uplift millions of lives in the country’s semi-arid eastern region. He said it would do so through electricity generation,

water supply and irrigation of 40,000 hectares of land.

The Bank Group president asked international development partners to support the case for the African Development Fund to be allowed to go to the capital markets with its $25 billion equity to raise an additional $33 billion.

Adesina sought to allay their fears that this could lead to an even bigger debt burden for the Fund’s beneficiaries.

He expressed concern that countries were already resorting to commercial borrowing at very high interest rates.

The Covid-19 has caused Africa’s commercial debt to increase. That debt is expected to worsen because of the impact of Russia’s war in Ukraine. The war has already produced an increase in energy and food prices. Adesina spoke about the dangers of governments resorting to commercial borrowing at exorbitant interest rates.

The African Development Bank has been pushing for the channelling of International Monetary Fund Special Drawing Rights to African countries through the Bank. The president explained that in this manner, they could be leveraged by a factor of four on the international capital market. He said this could help African countries deal with debt issues and allow them to invest more in transformative developments.

Adesina highlighted insecurity as a big concern, which he said had recently seen military expenditure rise while financing for development was declining.

“As a result, poverty levels are rising, particularly in rural areas, which have become zones of misery and fertile recruitment grounds for terrorists,” he said.

The African Development Bank Group president emphasized the importance of security

indexed investment. He cited the institution’s initiative to introduce security indexed bonds linked to investment, growth and development. He said the Bank and the Africa Union Commission were working together to support countries as they built their own security defense architecture.

Adesina also spoke about initiatives to empower youth, who he described as the African Development Bank’s biggest partners. The Bank is working with African governments and international partners to set up youth entrepreneurship investment banks. They will provide support to businesses run by young people. Adesina said: “The future of Africa’s youth is not overseas but in an Africa that is thriving in a sustainable and equitable manner. Young people do not need handouts or what is often referred to as ‘empowerment.’ Show me one young person who can readily tell you they have been empowered.

Young people need investment.”

At his wrap-up media briefing, Adesina commended President Uhuru Kenyatta’s government for developing what he called ‘world class infrastructure, particularly the expansion of the country’s roads network.’ He also commended the speed with which road projects were being implemented and the quality of work.

Adesina also gave high marks to ongoing construction of the African Development Bankfunded Kenol-Sagana-Marua Road, which he toured at the start of his visit. The 84-kilometre road—which will connect Nairobi with commercial and agricultural towns of central, upper eastern and northern Kenya—is expected to be completed in six months, two years earlier than planned.

It is part of the Great Trans-Africa Highway that runs from the

Egyptian capital of Cairo to Cape Town, South Africa. The highway will also facilitate regional integration by linking Kenya with Ethiopia and Somalia.

The African Development Bank Group president also spoke of the 454-kilometer Malindi – Mombasa – Lunga Lunga/Horohoro and Tanga - Pangani - Bagamoyo Road connecting Kenya and Tanzania.

He said this is a highway that will provide a big boost for regional integration. Lastly, he cited the 894-kilometer Nairobi-Addis Ababa Road, which has, among other things, expanded trade between Kenya and Ethiopia by up to 400%.

“Infrastructure is the backbone of any economy,” Adesina emphasized, adding that quality infrastructure spurs economic activity. He pointed out that the last seven years had seen the African Development Bank invest more than $40 billion in infrastructure in Africa.

He said he had urged the Kenyan government to seriously consider a zero-slum policy that would clear the country of slums, with the introduction of quality and decent low housing program.

The Bank Group chief said: “As we develop infrastructure, we must ensure that we do not create inequalities between rich and poor areas. We should use infrastructure to transform all the slum areas. We must reduce inequity and we must create new hope and new opportunities for the poor.”

During his four-day visit, Adesina met with President Uhuru Kenyatta, senior government officials, including Cabinet Secretary for Transport, Infrastructure and Housing, James Macharia, Cabinet Secretary for Energy and Petroleum, Monica Juma, and Principal Secretaries of various other line ministries.

MONDAY, JUNE 6, 2022

| NEWS

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| NEWS

MONDAY, JUNE 6, 2022

| NEWS

MONDAY, JUNE 6, 2022

17

AfDB launches new initiative to build financial acumen of African cities The African Development Bank and United Cities and Local Governments, a global umbrella group for local and metropolitan governments, have announced the launch of a new program to build the capacity of municipal chief financial officers across the continent.

The Municipal CFO Initiative was announced during the 9th Africities Summit held recently in Kisumu, Kenya.

The new initiative will enable

cities to tap financial markets more effectively in order to fund their local infrastructure and development projects. There is a pressing need for city infrastructure to grow and expand to meet the demands of Africa’s rapidly urbanizing cities.

“Such capacity-building programs play a catalytic role in the long term development of cities and turning municipalities into robust discussion partners for a broad range of funders,” said Alice Nabalamba, Chief Urban

Development Officer in the African Development Bank’s Infrastructure, Cities and Urban Development Department.

The program will get underway in September 2022; 10 municipalities will participate. Financial officers that take part will learn finance, accounting, and debt and risk management skills to improve the creditworthiness of their cities.

Participants will also have the opportunity to undertake site visits to African bourses, including the Johannesburg Stock Exchange and Abidjan Stock Exchange.

“A number of municipalities are almost ready to access financial markets, which will dramatically improve their capacity in financing projects.

Unfortunately, they don’t have a deep comprehensive understanding of how to

start,” said Dr. François Paul Yatta, Director of Programs at United Cities and Local Governments Africa. Yatta was speaking during a panel titled, Understanding the ecosystem of investors interested in African cities.

The low level of financial capacity in African municipalities was the subject of much discussion during the summit. “Municipalities have to inspire confidence, build a positive and engaging narrative to capture the attention of both public and private finance,” said Hastings Chikoko, Managing Director for Africa at C40, a global network of mayors that partners with the African Development Bank.

The Bank made a number of presentations during the conference.

These included the unveiling of the first component of its Sustainable Urban Development action plan, a blueprint for its interventions to reinforce subnational credit and municipal finance.

Zoomlion celebrates World Environment Day in grand style Zoomlion Ghana Limited has organised a massive clean up exercise in Madina in the La Nkwantanang Municipality in Accra to create public awareness on environmental sanitation in commemoration of World Environment Day. The activities included weeding on the shoulders of the principal streets, manual and mechanical sweeping of the roads, waste collection as well as desilting of choked gutters among others.

social and community service spirit in helping actualise Zoomlion’s aim of executing the massive clean-up perfectly.

She stated that the motive for the celebration of World Environment Day was to create awareness and educate the public to ensure environmental cleanliness and proper care of the environment at all times.

She said the United Nations have earmarked June 5 for the celebration

The exercise was undertaken by staff of Zoomlion and it’s subsidiaries under the Environment and Sanitation Cluster of the Jospong Group of Companies in collaboration with the La Nkwantanang Municipal Assembly, the security services such as the Ghana Police and the Armed Forces who offered security support throughout the exercise.

In an interview after the exercise, Managing Director of Zoomlion, Mrs. Gloria Opoku Anti appreciated the workers for the expression of their

and commemoration of the earth and environment so as to raise awareness on environmental issues including marine pollution, human overpopulation, global warming, sustainable consumption and wildlife crime.

Mrs. Anti said this year’s event is being celebrated under the theme “Only One Earth”.

She explained that the work of Zoomlion and its relevant subsidiaries under the Environment and Sanitation Cluster of the Jospong

Group of Companies in relation to safeguarding human lives which benefits the people of Ghana cannot be overemphasized.

The Managing Director also stated some interventions Zoomlion has put in place to encourage the preservation of our environment and the planet earth largely.

These according to her are environmental cleaning in all the Metropolitan, Municipal and District Assemblies (MMDs).

She disclosed that Zoomlion has over 2,000 waste trucks and over 2500 tricycles across the country for the collection of waste and haulage to our recycling plants and the final disposal sites.

She said the company has collaborated with successive governments over the years to plant trees to reclaim the earth to protect the earth from further depletion.

“Tree planting is therefore part of our work culture because more trees means long life to the citizenry” she added.

Mrs. Anti further stated the spectacular effort of Zoomlion in making Ghana reduce plastics by recycling and turning other municipal solid waste into reusable items.

Mention was made of the establishment of three recycling and compost plants in Accra and Kumasi namely, Accra Compost and Recycling Plant (ACARP), Kumasi Compost and Recycling Plant (KCARP) and the Integrated Recycling and Compost Plant (IRECOP).

She said these plants produces quality organic fertilizer for the agrarian community who feed

Ghanaians on daily basis.

Mrs. Anti disclosed that the IRECOP concept was being replicated in all sixteen regions (16) across the country which are at various stages of completion.

The Managing Director said her company has even incorporated liquid waste treatment plants into these IRECOPs and that already they have Sewerage Systems Ghana Limited which receives most of the liquid waste in Accra and another call the Kumasi Waste Treatment Plant in Kumasi.

Mrs. Anti said at the moment her company was implementing their One Million Bin Project The good news according to her is that as the leading waste managers, “we have established a company that produces waste bins and we have about 1 million bins for distribution.

She appealed to Ghanaians to ensure that every household owns a waste bin so that their waste can be put in the bins for periodic lifting to ensure that the environment is always clean.

It is our expectation as we leave here that we all are by this exercise encouraged to keep the environment clean, and the only means by which we can keep the environment clean is by subscribing to Zoomlion for a bin for our households going forward.

She said the catalogue of interventions by Zoomlion as mentioned are measures which will help safeguard the environment and extend the lifespan of the people and therefore, Ghanaians should be inspired by Zoomlion’s contribution and do their part by just keeping their environment clean.

18

| MARKET REVIEW

MONDAY, JUNE 6, 2022

WEEKLY MARKET REVIEW FOR WEEK ENDING - MAY 27, 2022 MACROECONOMIC INDICATORS Q3, 2021 GDP Growth

7.0%

Average GDP Growth for 2021

5.4%

2022 Projected GDP Growth

5.5%

BoG Policy Rate

19.0%

Weekly Interbank Interest Rate

19.34%

Inflation for February, 2022

23.6%

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 weakened for the week on the back of losses by 3 counters. The GSE Composite Index (GSE CI) lost 9.41 points (-0.37%) to close at 2,554.79 points, reflecting year-to-date (YTD) loss of 8.41%. The GSE Financial Stocks Index (GSE FI) also lost 17.86 points (-0.81%) to close at 2,192.57 points, reflecting year-todate (YTD) gain of 1.89%.

Market capitalization dropped by 0.42% to close the week at GH¢62,276.58 million, from GH¢62,540.50 million at the close of the previous week. This reflects YTD decrease of 3.44%.

Trading activity registered a total of 4,796,801 shares valued at GH¢4,288,986.32 changing hands, compared with 1,667,473 shares, valued at GH¢3,918,729.40 in the preceding week.

MTN dominated both volume and value of trades for the week, accounting, for 92.53% and 93.13% of volume and value of shares traded respectively.

The market ended the week with 1 leader and 3 laggards as indicated on the table below.

THE CURRENCY MARKET The Cedi depreciated against the USD for the week. It traded at GH¢7.1413/$, compared with GH¢7.1323/$ at week open, reflecting w/w and YTD depreciations of 0.13% and 15.90% respectively. This compares with YTD appreciation of 0.32% a year ago.

The Cedi depreciated against the GBP for the second consecutive week. It traded at GH¢9.0020/£, compared with GH¢8.8979/£ at week open, reflecting w/w and YTD depreciations of 1.16% and 9.72% respectively. This compares with YTD depreciation of 3.27% a year ago.

The Cedi also lost against the Euro for the week. It traded at GH¢7.6440/€, compared with GH¢7.5276/€ at week open, reflecting w/w and YTD depreciations of 1.52% and 10.67% respectively. This compares with YTD appreciation of 1.00% a year ago.

The Cedi further depreciated against the Canadian Dollar for the week. It opened at GH¢5.5558/C$ but closed at GH¢5.5951/C$, reflecting w/w and YTD depreciation of 0.70% and 15.25% respectively. This compares with YTD depreciation of 4.72% a year ago.

source: Bank of Ghana

MONDAY, JUNE 6, 2022

19

| MARKET REVIEW

BUSINESS TERM OF THE WEEK

COMMODITY MARKET Crude oil prices rose on Friday, closing out the week with gains ahead of the U.S. Memorial Day holiday weekend, the start of peak U.S. demand season, and as European nations negotiate over whether to impose an outright ban on Russian crude oil. Brent futures traded at US$119.43 a barrel on Friday, compared to US$112.55 at week open. This reflects w/w loss and YTD gain of 0.90% and 44.70% respectively.

Gold inched up on Friday after the dollar retreated from 20-year highs. Gold settled at US$1,851.30, from US$1,842.10 last week, reflecting w/w and YTD gains of 0.50% and 1.24% respectively.

Prices of Cocoa also inched up for the week. The commodity traded at US$2,462.00 per tonne on Friday, from US$2,429.00 last week, reflecting w/w gain and YTD losses of 1.36% and 2.30% respectively.

GOVERNMENT SECURITIES MARKET Government raised a sum of GH¢1,124.50 million for the week across the 91-Day, 182-Day and 364-Day Treasury Bills. This compared with GH¢1,292.10 million raised in the previous week.

The 91-Day Bill settled at 19.94% p.a from 19.08% p.a. last week whilst the 182-Day Bill settled at 22.95% p.a from 20.76% p.a. last week. The 364-Day Bill settled at 24.46% p.a from 21.55% p.a at last issue.

The table and graph below highlight primary market yields at close of the week.

Credit Enhancement: Credit enhancements are provisions that a borrower or a bond issuer can use to reduce a bond issue or debt by improving its creditworthiness. This process depresses the credit risk that comes with the debt, increasing the overall credit rating or credit score while providing reasonable and required security to the lender, plus lowering interest rates.

Source: https://www.theguarantors.com/blog/ a-brief-guide-to-credit-enhancement

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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.

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NO. B24/317 | NEWS FOR BUSINESS LEADERS

MONDAY, JUNE 6, 2022

Surviving a future of extreme heat Although nearly all heat-related deaths are preventable, heatwaves kill thousands of people worldwide every year. At this very moment, an extreme heatwave in India and Pakistan, affecting about one billion people, is “testing the limits of human survivability,” warns Chandni Singh, a lead author for the Intergovernmental Panel on Climate Change’s Sixth Assessment Report. In April, the average maximum temperature for northwest and central India was the highest in 122 years.

This is not just a South Asian problem. In recent years, similarly extreme conditions occurred in the United States, Australia, Europe, Scandinavia, and Japan, resulting in thousands of hospitalizations and excess deaths. Extreme heat is also linked to increases in premature births, low birthweight babies, and stillbirths; reductions in worker productivity; higher rates of chronic kidney disease of unknown origin; and increases in suicide.

Extreme temperatures are thus an “all of society” problem. Such conditions not only harm human health; they also have detrimental effects on infrastructure, crop yields, and poultry mortality, threatening livelihoods and undermining food security. The 2021 heat dome in the Pacific Northwest and western Canada was a case in point.

It was an event that would have been virtually impossible without climate change. Temperature extremes were about 5° Celsius above previous records, causing approximately 1,000 excess deaths and a 69-fold increase in heat-related hospitalizations.

Yields from wheat and cherry crops plummeted, and millions of mussels, clams, and oysters were cooked in their ocean habitats, threatening food security and livelihoods for indigenous peoples and low-income communities.

Already, nearly 40% of heatrelated deaths are attributable to climate change. And because climate change is expected to increase the frequency, intensity, and duration of heatwaves, the need for additional measures to protect people will only become more urgent. Without immediate

and significant investment to enhance community and healthsystem resilience, the deaths associated with heat exposure will increase.

Well-communicated, evidencebased action plans are needed to keep people cool and reduce hospitalizations and deaths. In addition to early-warning and response systems, longer-term planning is needed for life on a warmer planet. That means providing more blue and green spaces, changing building materials, and focusing on ways to cool people, rather than the surrounding environment.

Early-warning and response systems require more than just a single threshold for determining

such as Ahmedabad, India.

Moreover, organizations like the Global Heat Health Information Network are collecting and sharing data on local and national experiences and best practices.

The demand for additional guidance is growing rapidly, in tandem with the increasing frequency and severity of heatwaves.

But most of today’s earlywarning systems do not explicitly account for the risks of a changing climate. To be more adaptive, planners should adopt timelines for reviewing changes at the beginning and end of the summer season, while also developing regional collaborations to ensure consistent messaging. There

the usual threshold for declaring a heatwave. These warnings would need to be paired with effective communications, so that people are properly motivated to take the appropriate measures to stay cool.

Even after these improvements, early-warning systems should then be stress-tested to determine their robustness to unprecedented heat. This could be done through desk-based exercises to identify weaknesses. Stress tests should incorporate not just heatwaves but also compound risks such as back-to-back events: a heatwave combined with a wildfire; or a heatwave coinciding with a pandemic, as the Pacific Northwest experienced in 2021.

the start of a heatwave. Effective systems also should include collaborative processes to ensure that interventions account for local capacities and constraints.

Health ministries will need to work closely with (among others) hydrometeorological services, police and fire departments, emergency services, agencies responsible for elder care, and trusted voices for vulnerable populations (such as adults over 65) and marginalized communities.

Resources should not be a barrier. Effective early-warning systems already exist worldwide, including in low-resource settings

will also be a greater role for tiered early-warning systems that account for multiple thresholds, such as temperature readings combined with local knowledge of particularly vulnerable populations.

For example, initial warnings might be issued several days before the peak of a heatwave to alert at-risk groups such as older adults, young children, and pregnant women. A second set of warnings could then be issued at somewhat higher temperatures for outdoor workers and people engaged in sports or related activities, followed by a third set of warnings for the general public at

Vulnerability mapping can be an effective tool to help decisionmakers determine where interventions are needed most to protect human health and wellbeing.

A much warmer future requires urgent and immediate investments that capitalize on best practices and lessons learned from existing heat adaptation plans. Proven models need to be scaled up to enhance resilience and sustainability.

Unprecedentedly higher temperatures are survivable, but not unless we prepare for them.

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