Business24 Newspaper 16 May 2022

Twitter deal temporarily on hold - Elon Musk 04

Enact revenue collateralization law, deal with policy failure issues in inflation figures -Prof. John Gatsi 05

NEWS FOR BUSINESS LEADERS

BUSINESS24.COM.G H | MONDAY, MAY 16 , 202 2

At CoM2022, experts address effects of Russia-Ukraine crisis 03 on Africa

Fuel may see significant increase in price, IES predicts

By Fritz Moses

Minerals Commission says mining firms will engage host communities in new 03 guidelines

In the first pricing-window of May 2022, the price of fuel saw increases on the local market, in response to the rise in prices on the international market.

Most Oil Marketing Companies (OMCs) increased the price of Gasoil by at least 5% to reach Gh¢11 plus per litre at their pumps. The current national average price for Gasoline remains at Gh¢9.41 per litre, while Gasoil is pegged at Gh¢11.12 per litre. This is an increase of 7.34% increase from the previous

Gasoil average price of Gh¢10.36 per litre.

The Institute for Energy Security (IES) Market scan identified GB Oil, Dukes, PetroSankofa, Zen Petroleum, Goodness Oil, and Benab Oil as the OMCs with the leastpriced fuel on the local market.

The OMCs with the highest-priced fuel on the market were found to be Total, Engen, Semanhyia, Sel, Petrosol, Goil, Shell/Vivo, and Radiance.

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THEBUSINESS24ONLINE.COM

News/Editorial

Skills-based training remains critical to job creation agenda Ghana’s rising unemployment remains a hanging albatross on the neck of government as it poses serious security and economic concerns to the national development. Scores of graduates are in constant search of jobs but the question is whether they are well-skilled for the kinds of jobs that they seek.

What makes it a conundrum is the incessant demand from the business sector for a more employable or skilled workforce. It clearly tells that the lack of wellequipped graduates or persons with employable skills plays a big part in the high rate of joblessness in the country.

According to Statista, Ghana’s unemployment rate is above the worldwide unemployment rate, and compared to other Sub-Saharan African countries and other regions, Ghana has a relatively average rate of unemployment.

There is the urgent need for skills-based training in our training institutions to build a competent and employable workforce to drive the nation’s socioeconomic aspirations.

Another concern has been the preference for white-

collar jobs instead of having graduates venturing into entrepreneurship with innumerable opportunities almost every aspect of the Ghanaian economy.

A 2020 World Bank report titled “Youth Employment Programs in Ghana: Options for Effective Policy Making and Implementation” identified agribusiness, entrepreneurship, apprenticeship, construction, tourism and sports as key sectors that can offer increased employment opportunities for Ghanaian youth.

It also called for more investments in career guidance and counseling, work-based learning, coaching, and mentoring to equip young people with the skills needed for work. The report suggested 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.

We need a practical and sustainable approach to tackling the alarming unemployment rate in the country and we can start with correcting the persistent industry-academia mismatch.

Fuel may see significant increase in price, IES predicts continued from page 1

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The OMCs with the highestpriced fuel on the market were found to be Total, Engen, Semanhyia, Sel, Petrosol, Goil, Shell/Vivo, and Radiance.

Within the window under assessment, the IES Marketscan found pockets of fuel shortages at numerous OMCs retail outlets across the country, with Goil leading the pack. This is the first time Ghanaians may have to hop from one fuel outlet to another looking for Gasoline/Gasoil to buy since June 2015, after the government passed the petroleum price deregulation policy that ensures full cost recovery and efficiency in the downstream petroleum sector.

World Oil Market International Benchmark Brent price stayed beyond the $100 per barrel mark in this window. The lowest prices were recorded on May 10 at $102.46 per barrel. The price averaged $107.63 per barrel, representing a 0.77% increase over the previous window’s average price of $106.81 per barrel.

Over the past two weeks, oil stocks were reported by the Energy Information Administration (EIA) as falling, as Wall Street reacted to persistently high inflation, which is expected to result in additional Federal Reserve policy tightening due in part to a larger market selloff.

Oil prices fell on Monday May 9 due to a strong currency and renewed fears that China’s ongoing lockdowns would further depress demand. The market is reported as divided on whether the threat posed by China’s lockdowns outweighs the European

Source: IES, with data from Oilprice.

Union’s efforts to embargo Russian oil.

For the week ending May 6, the EIA predicted a 3.6 million barrel drop in Gasoline inventories. In comparison, the previous week saw a decrease of 2,2 million barrels. According to the US agency, Gasoline production averaged 9.7 million barrels per day last week, a slight increase from the previous week’s levels. Following its announcement that stocks increased by 8.5 million barrels in the week leading up to May 6, crude oil prices fell slightly in the final trading days.

This is in contrast to the previous week’s anticipated inventory gain of 1.3 million barrels, which provided a brief reprieve for prices.

World Fuel Market The various finished petroleum products as monitored on Standard & Poor’s (S&P’s) Platts platform within the past window experienced increments. Gasoline price saw a sharp rise of 7.64%, from its previous price of $1057.44 per metric tonne to the end date price of $1138.23 per metric tonne. Also, the price of Gasoil saw a marginal rise of 1.90%, from an earlier price of $1138.33 per metric tonne to its current price of

$1159.98 per metric tonne. The price of LPG too closed the window higher at $894.53 per metric tonne from an earlier price of $843.53 per metric tonne, representing a 6.05% rise.

Local Forex IES Economic Desk’s analysis of the Forex market revealed that the Cedi made some marginal gains in the period under review, appreciating by 0.28% from the previous rate of Gh¢7.8165 to the Dollar to the current rate of Gh¢7.7948 against the Dollar.

IES PROJECTIONS FOR MAY 2022 SECOND PRICING-WINDOW For the rest of May 2022, the 7.64% rise in Gasoline price, 1.90% rise in Gasoil price, and the 6.05% rise in the price of LPG on the international market will push local market prices higher. Although the Cedi appreciated by 0.28% against the dollar, prices of Gasoline, Gasoil and LPG may still see an upward adjustment, barring any intervention from government.

In IES’ estimation, the upward revision of Gasoline, Gasoil, and LPG prices may be significant, on the back of rising international fuel prices, and the growing pockets of fuel shortages across the country.

Fritz Moses Research Analyst, IES (fritz@iesgh.org)

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At CoM2022, experts address effects of Russia-Ukraine crisis on Africa The ECA Sub-Regional Office for Southern (SRO-SA) in collaboration with the Angolan Government and the United Nations Resident Coordinator’s Office in Angola held a side event at the margins of the 54th session of the ECA Conference of African Ministers of Finance, Planning and Economic Development to offer African countries a platform for dialogue, exchange of ideas and experiences on the actual and potential impacts of the RussiaUkraine crisis on African economies.

The side event aimed to stimulate reflection on the impact of the crisis on the sustainable development of African economies, share experiences and perspectives on how to mobilise resources to counter the shocks of COVID-19 and Ukraine Crisis.

SRO-SA Director, Eunice G. Kamwendo, noted that African countries are most affected by the pandemic and the combined impact of the COVID-19 and the Ukraine crisis are likely to further aggravate liquidity issues constraining recovery.

She reminded that as a region Southern Africa contracted the most out of all the sub-regions in Africa due to Covid-19.

“According to estimates by the African Development Bank (AfDB) the region’s GDP contracted by as much as 6.3% in 2020, compared to a 2.1% recession for the rest of Africa,” said Ms Kamwendo.

She pointed out that Africa faces a high risk of food insecurity because Russia and Ukraine are major global

suppliers of agricultural commodities such as maize, wheat, oils and fertilizers.

“The two countries, combined, provide 30 per cent of the world’s wheat and barley needs; supply nearly one-fifth of maize globally, and account for over half of the global market share in sunflower oil, among other commodities.”

The United Nations Resident Coordinator, Zahira Virani added that the war in Ukraine is forcing Africa to revisit its strategies. “Angola is leading the side event because Angola is in a unique position of facing adverse impacts and opportunities at the same time”. She said the African Continental Free Trade Area provided a great opportunity for intra trade and new markets for the country.

Angola Minister of Economy and Planning, Mario Augusto Caetano Joao, informed the meeting that

to counter shocks Angola has engaged deep reforms and changed its business model by prioritizing local production and diversifying from focus on oil production to heavy investments in agri business, fisheries, and transport to give the country a comparative advantage.

“Ten years ago, Angola’s oil dependence was 43% and now oil dependency is only 20% showing that the investments are bearing fruit and the country’s economy has stabilized despite the crisis”.

Southern Africa participants benefited from the exchange of experiences from East Africa. Hon. Amos Lugoloobi, Uganda Minister of State for Finance, Planning and Economic Development encouraged Southern African countries to increase local food production to prevent the dependency on wheat.

He gave an example of his country which has increased the production

of its staple food and products such as bananas, maize, cassava, palm trees and potatoes.

Mr Lugoloobi noted that Uganda is a net producer of its food supplies and export to neighbouring countries.

The country has also embarked on increasing the production of sunflower oil to counter rising prices and be self-sufficient and able to face shocks.

On policy responses to the Ukraine crisis and COVID-19 pandemic, the meeting listened to three other presenters: Dr. Yamungu Kayandabila the Deputy Governor of the Central Bank of Tanzania; Mr. Marcos Souto, IMF Country Director in Angola, Dr Eklou Attiogbevi-Somado, Manager for Agriculture and Agro-Industry for West Africa, African Development Bank and Mr. Mtho Xulu, President of South African Chamber of Commerce and Industry.

The meeting, moderated by Joseph Atta-Mensah from ECA’s Macroeconomics and Governance Division, closed with an interactive Question and Answer session involving the panelists, journalists, and representatives of member States African member States, who reiterated to ECA the importance of the annual Conference of African Ministers of Finance, Planning and Economic Development (CoM) as a platform that allows stakeholders to debate key issues of relevance to Africa’s development.

Minerals Commission says mining firms will engage host communities in new guidelines

By Eugene Davis The Minerals Commission is in the process of developing a framework aimed at ensuring equitable development by mining firms in their host communities.

There have been several reports of communities complaining about lack of basic social amenities and degradation of their environment as a result of activities by mining firms.

The move, according to Josef Iroko, Manager, Legal Mineral Commission is expected to provide a guideline for mining firms to comply.

Speaking to Business24 in an interview at a skill building workshop for civil society and media on mining contract analysis and the Ghana Mining Repository under at the auspices of Natural Resource Governance Institute (NRGI), he said “There will be a requirement that mining companies will have to sit with the host communities and agree on development objectives for the area and that will be made part of the mining agreement before they are approved and under it we are expecting to devote a percentage of

income from the mining operations to be used to fund development agreement in the area.”

He also indicated that the communities are “being shortchanged, that most of the time, the communities do not know what is happening, all they hear is that a mining company has come to their area. As part of some of these efforts, the Community Development Agreement will be used to address some of these issues.”

Further, Mr. Iroko disclosed it is in addition to what currently exists where the owner of the land or someone who has interest in it, or being affected, would have to negotiate and pay compensation before one can actually go to the ground and carry out the work.

The Minerals commission has disclosed five development and investment agreements between Ghana and various mining companies namely Anglogold Ashanti, Goldfields Ghana (Tarkwa), Newmont Golden Ridge, Anglogold Obuasi Mine Redevelopment and Abosso

Josef Iroko Goldfields.

The Commission also launched the Ghana Mining Repository (GMR)2 which contains updated information on all mineral licenses issued in Ghana, the owner/company/entity and spatial maps of the license areas and resource type; however, significant challenges remain.

For instance, there is no legislative backing for the disclosure of mining

agreements unlike in the petroleum sector. There is also little awareness among stakeholders of the existence of these agreements and license information and how to access them.

Mining is a key component of Ghana’s national economy; the country is Africa’s largest gold producer. The Covid-19 pandemic highlighted the mineral’s prominent role, as gold is seen as a safe investment during uncertain times.

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Twitter deal temporarily on hold - Elon Musk

Billionaire Elon Musk on Friday said his acquisition of Twitter is temporarily on hold pending details supporting a calculation that spam or fake accounts represent less than 5% of users of the microblog.

Musk was reacting to a news report about Twitter estimating that false or spam accounts represented fewer than 5% of its monetizable daily active users during the first quarter.

He tweeted: “Twitter deal temporarily on hold pending details supporting calculation that spam/fake accounts do indeed represent less than 5% of users”.

Twitter estimated in a filing on Monday that false or spam accounts represented fewer than 5% of its monetizable daily active users during the first quarter.

The social media company had 229 million users who were served advertising in the first quarter. read more The disclosure came days after Tesla Inc (TSLA.O) Chief Executive Elon Musk, who has inked a deal to buy Twitter for $44 billion,

tweeted that one of his priorities would be to remove “spam bots” from the platform.

Twitter said in the filing it faced several risks until the deal with Musk is closed, such as whether advertisers would continue to spend on Twitter and “potential uncertainty regarding our future plans and strategy.”

MONDAY, MAY 16, 2022

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MONDAY, MAY 16, 2022

Enact revenue collateralization law, deal with policy failure issues in inflation figures - Prof. John Gatsi

The announcement of the consumer price index (CPI) inflation by the Ghana Statistical Service (GSS) is not a mere ritual but a serious opportunity to assess policy effectiveness and learn emerging lessons to activate a process of policy reorientation to protect livelihood and business sustainability.

Food prices have experienced upward trend over the past 4 years.

The April 2022 CPI is influenced

by food related inflation with imported inflation almost at par with domestic inflation. This calls for serious policy re-examination and not the usual blame game pointing at imported inflation because the data revealed both local and imported inflation have increased over the period.

A number of local “foods”from cereal, grain and vegetables among fifteen items with higher weight of inflation such as maize, corn dough, water melon, okro and wheat among others are not not less that 54% inflation over the period.

The above should trigger examination of our agricultural policies in terms of producing at cheaper cost and made available to the domestic market for industrial and household consumption at relatively lower prices. Agricultural policies must feed into price stability programs.

Inflation in advanced economies should not be our strength to shift blame. The level of inflation and pass-through effects of monitoryand fiscal policy choices with eminent significant upward tariff review for water and electricity will lead to further increases in the rate of inflation, monetary policy hike that will increase already high lending rates and possible pressure on the exchange rate.

We now talk about taxation more than production. We have forgotten the influence on cost structure and price by importers due to heavy burden of taxes at the ports, exchange rate depreciation as major contributors of price development in Ghana and cv not only increases in inflation globally.

Continuous uncontrollable fiscal policy engagement poses enhanced risk of fiscal burden that must be checked. The

Finance Minister has hinted of collateralizing proceeds from the e-levy to enable government to borrow . Actually, new borrowing is collateralized against future revenue so if the future revenue is hugely collateralized then present and future creditors whose repayments are based on future revenue are clearly at risk.

There must be a legislation to deal with collateralization to ensure discipline , accountability, risk management and protection of future public revenue space.

The inflation figures and the disaggregation of the data shows weak policy regime that demands serious attention and not shifting blame. The trend of collateralization calls for enactment of revenue collateralization law to strengthen fiscal management.

UK Ghana Chamber of Commerce releases 2021 Business Environment and Competitiveness survey The UK- Ghana Chamber of Commerce (UKGCC) is pleased to release the 3rd edition of its annual Ghana Business Environment and Competitiveness Survey Report for the year 2021.

The survey captured the sentiment of businesses operating in Ghana at a time when the COVID-19 pandemic persisted, and businesses were making efforts to recover from the effects and remain resilient.

The survey identified some components of the business environment that have seen improvements in their ranking since UKGCC began tracking them 2019. The top 5 of these components are the availability of advanced technology which improved by 67%; availability of telecom facilities which improved by 61%; availability of power supply and availability of universities and training facilities, both of which improved by 57%; and sophistication in firm management and strategies which saw a 53% improvement.

Respondents expressed some positive sentiments about doing business in Ghana, citing Ghana’s

regulatory framework, availability of water, availability of power, effectiveness of the legal system and availability of telecom facilities as the top 5 indicators.

Despite these considerable improvements and positive sentiments in the business environment in Ghana in the past year, the survey findings reveal that several constraints to business growth and potential remain.

According to the report, which surveyed 47 respondents from among UKGCC’s member companies, 80% of businesses perceived cost of capital as the highest impediment to business

growth. This was followed by corruption, access to capital, cost of land and government bureaucracy at 68%, 66%, 65%, and 60% respectively.

The survey also indicated that businesses are generally unprepared for AfCFTA as an opportunity, while 82% of them prioritised ‘expanding digital competencies’ as a top focus for doing business in the new normal.

The Chamber’s Executive Director, Ms. Adjoba Kyiamah, remarked that “there is clearly a need to address these challenges through reforms to sustain Ghana’s growth and create the enabling environment for the

business community”.

Abeku Gyan-Quansah, Tax Partner at PwC Ghana, collaborators of this survey, added, “We trust that government along with other stakeholders will take the findings of this survey with the seriousness it deserves and use it to inform policies and programmes that will eventually lead to a further improvement in the country’s business climate.

We will be looking to assess – and will be delighted to find – such improvements in subsequent business climate surveys produced by the UKGCC”.

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Importers, exporters blame GUTA leadership for economic hardship The Importers and Exporters Association of Ghana (IEAG) has blamed the leadership of the Ghana Union of Traders Association (GUTA) for what it described as the hardship and high cost of doing business in Ghana currently.

IEAG, in a statement signed by its Executive Secretary, Mr. Samson Awingobit Asaki, in Tema said “all these hardships and challenges largely have to do with GUTA’s endorsement of government’s unwarranted and insensitive policies towards trading.”

The Importers and Exporters Association claimed that “the current GUTA leadership is in bed with the government endorsing all its policies even when it is not in the interest of traders.

“It is worrying that any time trades organizations kicked against some government’s unfravourable policies, the government then runs to GUTA, or GUTA leaders on their own volition would go to the government to support them at the expense of defending their members’ interests.

“Almost all the policies the government has introduced and implemented have received the

blessings of GUTA, yet, they will leave the meeting grounds, go into the market and behave like saints and innocent or ignorant of what is happening to the business community,” the statement indicated.

“The way and manner the current GUTA Executives are treating the government and some of its unfriendly trade policies leave one to wonder if the current GUTA executives are not directly and personally benefiting from the government at the expense of their members and the cherished trading public,” the statement added.

The IEAG cautioned that until the current GUTA leadership acknowledged that they were leaders because of their members, and stand firm to oppose policies that are against the business community just like their sister associations do, the hardship the business community was facing would be worse.

“Until the current GUTA leadership change and realize that they are not leaders on their own and therefore cannot take decisions all the time on their own, but rather need to consult with their membership including

sister associations, we will still have these problems at hand in the Ghanaian Trading Environment.”

It emphasized that “it must therefore be placed on record that GUTA was responsible for the difficulties all Ghanaian businesses were going through by accepting and allowing the implementation of some government’s insensitive policies.”

The association, therefore, called on all the importers and traders in Ghana to put pressure on the current GUTA leadership to sit up and think of the plight of traders instead of bowing to the whims and caprices of the current government all the time.

The importers and exporters association explained that interactions with some operators in the country revealed that they were losing huge revenue.

The association noted that the traders admitted having lost a minimum of about 40 percent of their revenues monthly due to the unfavourable policies of the government.

It added that prices of goods have gone up by 30 percent in all sectors making consumers’ purchasing power drop drastically.

Asharami Synergy targets 30% aviation fuel market share to enhance economic growth

Asharami Synergy Limited, a Sahara Group Downstream Company, is investing in technology and innovative solutions to enhance its capacity to fuel seamless economic growth through operations in the aviation fuel market.

Asharami Synergy Limited, which is Nigeria’s first indigenous energy company to operate as an independent Aviation Fuel Marketer, controls about 25 percent market share in the industry, operating as the preferred aviation fuel market for local and international airlines.

Foluso Sobanjo, Head, Sahara Downstream Business, at a press briefing in Lagos, said investments in infrastructure, human capital

transformation, quality, health, safety, and environmental sustainability continues to drive service excellence in the organisation. He said Asharami Synergy would leverage its technology driven supply chain efficiency across the Downstream value chain to deliver distinctive value and innovative solutions in the market.

“We have been at the forefront of Oil and Gas enterprise in the West African region for over twenty years. Asharami Synergy has a formidable presence in the sector, providing best-inclass fuel procurement and distribution solutions by utilizing innovative technology and improved efficiency across the

downstream supply chain. Our quest for increased market share is borne out of our commitment to transforming the sector and spurring economic development,” Sobanjo said.

Asharami Synergy operates in four countries in the Africa and has a combined storage capacity of 81 million litres of Aviation fuel otherwise known as ATK. The company has over 30 million litres storage capacity for ATK across various locations in Nigeria as well as a fleet of ultramodern bowsers spread across various locations, fueling the development and growth of the national and sub-regional economy by providing seamless access to safe and reliable ATK. Sobanjo said “safety first and always” is the mantra that drives operstions in Asharami Asharami Synergy, a development that has earned the company multiple International Standard Organisation certifications.

He said being a strategic partner of the International Air Transport Association (IATA) gives Asharami Synergy a global credibility that is driven by a statutory self-responsibility that propels its business operations

in compliance with the highest global standards.

“Asharami Synergy has several ISO certifications; ISO 9001:2015 (Quality), ISO 14001:2015 (Environmental) and ISO 45001:2018 (Occupational Health and Safety). This reinforces our commitment to bringing energy to life responsibly in all our operations. Our mantra is to Safety First, Safety Always, ensuring that the health and safety of our employees and other stakeholders remains top priority in all business operations,” he added.

Asharami Synergy is a vertically integrated and foremost downstream company in the West African region with established and formidable presence in the sector-providing best-in-class fuel procurement and distribution solutions by utilizing innovative technology and improved efficiency across the downstream supply chain for over twenty years.

The company emerged from a consolidation of Sahara Group Downstream Companies with interest in procurement, storage, and distribution of white products across Nigeria.

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Local production is solution to Ghana’s inflationary pressures Captains of Trade and Industry say strategic investment and sustained local production is the solution to Ghana’s inflationary pressures and economic challenges.

They noted that the continued importation of goods, including about 70 percent raw materials for local production was the main contributing factor to the rising exchange rate challenge and high inflation rate, and its attendant economic hardships.

Accordingly, they have asked the Government to create an enabling environment for local industries to have access to capital and be in the position to increase production without pushing the high cost of production to consumers.

Dr Joseph Obeng, President, Ghana Union of Traders Association (GUTA), Mr Tsornam Akpeloo, Greater Accra Chairman, Association of Ghana Industries (AGI), and Dr Adu Owusu Sarkodie, an Economist, said this during a media engagement.

Mr Akpeloo noted that about 70 percent of raw materials for production were imported, which made local manufacturers incur high freight charges due to exchange rate and inflationary pressures.

He said as a country, there was the need to prioritise the domestic production of goods to halt the rising rate of inflation and spur local production.

“There is no way we can come out of this problem by not having clearly defined locally produced items to consume. The call to localise is what we are asking for to stabilise our system,” Mr Akpeloo said.

He emphasised that: “The solution now is producing locally.

Everything happening on the international front is affecting us.

Ghanaians should also take some of the blame, government is not the problem every day. We should also develop the love to encourage and appreciate local production.”

Dr Sarkodie observed that Ghana was not the only country

suffering from the Russia and Ukraine war, but the extent to which it depended on them had an impact on the local economy.

He said that: “Local production is the best way to keep our exchange rate intact. We should encourage local production because we cannot predict when this Russia-Ukraine war will stop.”

He said there was the need to deal with the issue of food by ensuring that: “We have a policy as a country to say no Ghanaian will go hungry.”

Dr Obeng, GUTA President, stated that capital acquisition was very high in Ghana, with inflation also impeding industry’s growth and making the purchasing power of consumers limited.

He said: “We need to look within, and identify the areas that we have comparative advantage then we produce and become a hub of manufacturers. This will make us super-rich.”

He added that: “Those who are manufacturers of floor tiles are making it big. We need to

encourage a lot more people to go into this sector so that we become a hub.”

The Ghana Statistical Service (GSS) announced on Wednesday, May 11 that, the national yearon-year inflation rate was 23.6 percent in April 2022, which is 4.2 percentage points higher than the 19.4 percent recorded in March 2022.

The month-on-month inflation between March 2022 and April 2022 was 5.1 percent, the GSS said.

Four Divisions; Transport, Household equipment and Routine Maintenance, Food and Non-Alcoholic Beverages, and Housing, Water, Electricity, Gas and Other Fuels, are the highest contributors.

The April food inflation of 26.6 percent was higher than both last month food inflation of 22.4 percent and the average of the previous 12 months, which was 13.5 percent.

GNA

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MONDAY, MAY 16, 2022

Sahara Foundation promotes clean energy with Sahara Impact Fund Sahara Foundation, the corporate citizenship vehicle of energy and infrastructure conglomerate, Sahara Group, has launched the 2nd Cohort of the Sahara Impact Fund (SIF) and the Governance Unusual Program to support social innovators creating solutions that increase access to clean energy and promote sustainable environments.

The project reinforces Sahara Group’s commitment to bringing energy to life responsibly by connecting social innovators with opportunities that will enhance their contribution to eradicating energy poverty and enhancing environmental sustainability.

The SIF is a strategic partnership involving Sahara Foundation, Ford Foundation, LEAP Africa and Impact Investors Foundation.

The Sahara Impact Fund will provide seed funding of $5,000 each for successful finalists, including incremental funding access based on impact, reach and sustainability matrices targeted at supporting young social entrepreneurs in Africa.

In addition, the Fellows will have mentoring sessions with business leaders at Sahara Group and other private sector partners, to scale up clean energy and sustainable environment innovations.

The inaugural cohort of the SIF produced Fellows from Cameroon, Nigeria, Rwanda and Malawi who are spearheading transformative solutions through their businesses. According to Damilola Asaleye, Co- founderAshdam Solar “The learnings

from the Sahara Impact Fund fellowship have become a daily guide for my organization to achieve our strategic plans of providing access to clean and affordable energy for all in Nigeria.”

“In addition to the seed capital, which was a great boost to my business, I have also built professional networks with likeminded passionate entrepreneurs from all over Africa,” said Ghislain Irakoze, Founder, Wastezon, Rwanda.

Pearl Uzokwe, Director, Sahara Foundation, said the Sahara Impact Fund and Governance Unusual program will reinforce ongoing conversations around increasing entrepreneurial capacity and inspiring a paradigm shift in governance through individual responsibility.

“We are delighted to lead and join the quest of ensuring that no one is left behind when it comes to energy access and shore up expertise and capacity towards providing global solutions for environmental sustainability.

We urge social innovators across Africa to apply to be part of this movement today,” she said.

Uzokwe said applications for the SIF are open from 9th May 2022 to 30th May 2022. “Full details of the application process are available across our social media platforms @iamsaharafdn and the Ujana Hub at www. ujanahub.com. Enquiries can also be sent to sahara.foundation@ sahara-group.com,” she added.

The maiden edition in 2021

exposed the ten (10) social innovator fellows to blended capacity building sessions in the form of workshops, webinars, immersion sessions, facility tours, cohort meetings, mentoring sessions, one-on-one strategy & finance sessions and Fire chat sessions.

Since inception, Sahara Foundation has implemented various projects across its locations in Africa, Europe, Asia and the Middle East, impacting the lives of over 2,000,000 beneficiaries, with youth accounting for over 50% of the beneficiaries.

Deloitte Ghana launches diamond jubilee anniversary Deloitte Ghana has launched its diamond jubilee anniversary on the theme, ’75 years of making an impact that matters to our clients, society, and each other.’

The Country Managing Partner of the company, Daniel K. Owusu, delivered the welcome address.

He highlighted some achievements of Deloitte Ghana in recent times.

“Deloitte is the only firm that has produced three presidents for the Institute of Chartered Accountants. We have made several contributions to our community.

We recently supported the school for the deaf at Akropong, we reached out to the children’s ward of the Ghana Police Hospital, the Mamprobi Girls’ school in Accra, the Accra Wesley Girls’ school, and the Agbobloshie market to educate

the market women on simple book-keeping.”

“We also supported the Cape Coast Hospital with PPEs in the height of the COVID-19 pandemic,

we introduced the Graduate Employment Training Scheme.”

He acknowledged that there have been some setbacks along the line, adding that those challenges

have made the company more resilient.

He indicated that the future of the company is “digital.”

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MONDAY, MAY 16, 2022

The inflation tail is wagging the policy dog

By Daniel J. Arbess With prices in many advanced economies surging, central banks are being roundly criticized for falling “behind the curve” on inflation. But they didn’t.

Government policies and geopolitics constrained central bankers from normalizing their monetary policies until inflation was already upon them. Chinese and Russian supply-chain disruptions collided with the synthetic demand created by the US Department of the Treasury mailing free money to American consumers.

There is now very little room for monetary tightening without stalling the economy (which is already faltering under tightening financial conditions). But make no mistake: the window to tighten monetary policy was missed because of decisions made by political leaders. It is they who bear responsibility for fixing the problem, keeping in mind that the longer-term economic environment is still defined by the “three Ds”: rising debt, demographic aging, and disruptive labor- and demanddisplacing technologies. In these conditions, persistent disinflation is more dangerous than episodic inflation.

In retrospect, it is clear that the US Federal Reserve and other central banks were forced by political leadership to defer policy normalization (a prerequisite for responding effectively to the next crisis) while the economy was strong in 2018. When the pandemic hit, former President Donald Trump’s administration and Congress panicked, directing the Treasury to borrow trillions of dollars to finance “economic impact payments” to stimulate consumer demand. Then in

2021, Joe Biden’s newly installed administration essentially repeated the process.

The newly issued short-term Treasuries were bought by the Fed, which more than doubled its balance sheet over the past two years, increasing its holdings from $4 trillion to $9 trillion (nine times higher than its mid-2008 level of less than $1 trillion). The consequences were predictable.

As the Nobel laureate economist Milton Friedman famously argued, inflation is “always and everywhere a monetary phenomenon … produced only by a more rapid increase in the quantity of money than in output.” More money chasing the same output of goods and services means higher prices.

Ordinarily, the Fed could raise rates, cooling excess demand long enough for supply to catch up. But this time, the intersection of geopolitics and pandemicrecovery dynamics yielded both surging demand and delayed supply.

Fortunately, with consumers having spent their stimulus checks, the latest data suggest that inflation is peaking. And it should decline further as private businesses repair product supply chains without waiting for government. But now that the market has finally been conditioned for rate hikes, the more immediate danger is an over-tightening of financial conditions.

Inflation might soon be forgotten as central banks pursue quantitative tightening (QT) – selling down the holdings that they have amassed after 15 years of bond buying. For its part, the Fed is targeting a $1 trillion (or 11%) reduction in its Treasury holdings

over the coming year.

The problem is that when the Fed sells Treasuries, it effectively drains liquidity from markets at prices that private markets set regardless of policy rates. Hence, ten-year Treasury rates already jumped from 1.9% to 2.7% in the past month, and the Fed has only just begun the first of its three most modest asset sales ($47.5 billion per month between June and August of this year).

In the meantime, a lot could go wrong from a fiscal perspective.

Consider that $24 trillion of US sovereign debt is publicly held with an average maturity of about five years. That means an increase of two percentage points in interest rates over the next five years would add nearly $500 billion to the federal government’s current debt-servicing burden of $352 billion. The current $3 trillion federal budget deficit thus would increase by nearly 20%, more than offsetting savings from the end of COVID “economic impact payments.”

To be sure, the incremental cost of the first $1 trillion of Treasuries the Fed sells might be manageable.

But consider the interest-rate and budgetary implications of the Fed selling off another $3 trillion to return to 2020 levels, let alone another $7 trillion to return to 2009 levels. Talk about crowding out non-discretionary spending: Interest payments on federal debt might well become the largest single item of national expenditure – though the costs of social security, health care, and national defense are also set to rise substantially in the coming year.

Absent politically untenable tax increases, US fiscal deficits and total debt are poised to rise to new

highs. Meanwhile, the junk bond market has mushroomed to more than $3 trillion outstanding, and is heavily skewed toward lowerquality issuers. As those issues mature, we should expect to see a significant number of “zombie” companies that must restructure because they cannot refinance at higher rates.

But this is assuming that any material tightening happens at all. The economy appears to be heading toward recession before policy-rate increases have reached a full percentage point, and before QT has even started.

US GDP growth is foundering, and the employment situation is considerably less rosy than it looks.

The low headline unemployment rate of 3.6% does not account for the fact that only 62.2% of eligible employees are even looking for jobs. The available jobs seem to be ones that nobody wants.

Moreover, as artificial intelligence and other software technologies become more advanced, they will increasingly displace both unskilled manual laborers and skilled service professionals. Wall Steet bankers, traders, investors, and lawyers everywhere might soon find their jobs at risk. They should consider themselves lucky enough still to be employed – even if that means going back to the office.

Navigating these crosswinds and rough seas will require many waves to break gently. It would certainly help if policymakers stopped looking for the fastest and easiest way out and instead resolved to act strategically on national and global economic and political goals.

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MONDAY, MAY 16, 2022

Verna Natural Mineral Water wins ‘Water of the Year’ at Ghana Beverage Award

Verna Natural Mineral Water has been adjudged ‘Water of the Year’ award at the sixth edition of the Ghana Beverages Awards (GBA).

A product of Twellium Industrial company Ltd, Verna Natural Mineral Water beat brand such as Voltic Natural Mineral Water, Bel Aqua Mineral Water, Awake Purifies Drinking Water in a keenly contested ‘Water of the Year’ Category.

This year’s Ghana Beverage Award was organised under the theme “Inspiring Excellence in Ghana’s Beverage Industry” at the Kempinski Gold Coast City Hotel in Accra.

Commenting on the award, Chief Marketing Officer at Twellium Industrial company Ltd., Ali Ajami, said the awards affirm Verna’s position as the

preferred Natural Mineral Water that continues to shape the industry.

“Twellium Industrial company Ltd. has over the years introduced a lot of great products to provide Ghanaians with the needed refreshment and nutrition. We are on the quest to deliver and provide quality services, premium brands that exceed the expectation of our esteemed customers. With the readiness of customers, we will keep producing best of products.” he added.

Mr. Ajami further dedicated the award to Verna customers, stakeholders and staff for their immense contributions to the success journey of Twellium Industrial company Ltd. “I dedicate this award to our loyal and cherished customers, stakeholders and to our employees

for their hard work. We will keep providing exceptional products to continue refreshing Ghanaians.”

Twellium Industries has up to a total of 11 machinery with the highest speed of Sidel lines and the biggest producing capacity in the whole of Africa, producing various SKUs. Glass, bottle, jar of 500ml, 750ml and 1.5L sizes.

Verna Natural Mineral Water has the lowest sodium content, making it the healthiest water for all especially the elderly and babies. It has the optimum pH level falling between 7 - 7.5 pH. Verna bottle is ECO friendly making the safest for the environment. Verna is certified with both ISO (International Organization for Standardization) and HACCP (Hazard Analysis Critical Control Point) ranking it as an international standard

brand.

Over the years, Verna Natural Mineral Water, through its ‘changing lives’ initiative has the most impactful social projects that gives generously back to the Ghanaian society. It also partners the Ghana Olympics to help grow the sports fraternity in the country.

The Ghana Beverage Award is proudly organized by Global Media Alliance and supported by the Food and Beverage Association of Ghana, Consumer Protection Agency, Food Research Institute under CSIR, Perception Management International, Ministry of Trade and Industry, Ministry of Tourism, Arts and Culture, and the Ghana Tourism Authority.

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MONDAY, MAY 16, 2022

AFDB AGM to provide opportunity to advance economic integration to respond to challenges—Ken Ofori-Atta Minister for Finance, Ken OforiAtta, has hinted that, the Africa Development Bank Group Annual General Meetings to be held in Ghana would provide an avenue for the continent to respond to its challenges.

He noted that, 41 African economies were severely exposed to at least one of three concurrent crises which included rising food prices, rising energy prices and tightening financial conditions.

The minister made this known when he addressed the media ahead of the upcoming 57th Annual Meeting of the Board of Governors of the African Development Bank and the 48th Annual Meeting of the Board of Governors of the African Development Fund.

Enumerating some of the challenges the continent faced, he said Food prices were 34 percent higher than this time last year and have never been this high since the UN’s Food, and Agricultural Organisation started recording them.

Again, crude oil prices had increased by around 60 percent,

and gas and fertilizer prices had more than doubled, global inflation rose to a decade high of 6.0 percent in February, causing many central banks to signal increases in interest rates, inevitably leading to higher debt servicing costs and the number of people experiencing hunger has increased by 46 million in Africa.

“The spread and scope of these challenges require collective and coordinated action at the regional level if Africa is to overcome them” he said.

The annual general meeting under the “Achieving Climate Resilience and a Just Energy Transition for Africa” will commence from 23rd to 27th May 2022 will be officially open

by President of the Republic of Ghana, Nana Addo Dankwa Akufo Addo.

The meeting among other things would have 30 indigenous industrialists and 5 FINTECHs to showcase their services and products and provide an opportunity to advance the cause of economic integration to respond to Africa’s challenges.

Participants at the meeting would include Ministers for Finance, Governors of Central Banks, Leaders of local and international Finance and Development Organizations.

Others would be captains of industry, and civil society, 4 organizations from the 81 Member States of the AfDB; made up of 54 Regional and 27 non-regional member countries.

Mr. Ofori-Atta noted that, Ghana now had an opportunity to host the Annual Meetings of the two main entities that made up the AfDB (the ADB and ADF) and that 3500 participants were expected to attend the meetings.

He further conveyed the country’s gratitude to the African Development Bank for the numerous developmental projects Ghana had undertaken through its “enduring partnership with the bank”.

These included the construction of the only four-tier Interchange

in West Africa, the Pokuase Interchange, to ease traffic and improve productivity, the construction of the Terminal 3 at the Kotoka International Airport to enhance travel experiences and promote connectivity, the construction of the AwoshiePokuase road, Fufulso-Sawla Road and parts of the Northern Corridor Roads to advance the exchange of goods and services and deepen economic integration.

“We are also thankful to the AfDB for its support in establishing the Development Bank Ghana (DBG) and providing US$70million to complement the Government’s attempts at protecting lives and preserving livelihoods in the wake of the COVID-19 pandemic” he disclosed.

GCB Ladies donate over GHc15,000.00 to Princess Marie Louise Hospital & Sunyani Girl Child Education GCB Bank Ladies Association over the weekend donated GHc10,000.00 and assorted items worth GHc8,000.00 to the Princess Marie Louise Children’s Hospital in Accra and the Sunyani Girl Child Education of Sunyani.

The complimentary items included sanitary towels, detergents, and tissues to aid the hospital in the control of infections and assist the adolescent girl child improve menstrual hygiene.

The presentation was after a health walk organized by the Association on the theme, “Dominating the Digital Space: The Role of GCB Ladies.”

Starting from the Ayi Mensah toll booth and ending at Tavern Lodge in Peduase, fitness aerobics and cardio workouts engaged all participants who were cheered on by live brass band music amid invigorating songs and chants.

The donation and health walk were part of activities to mark this years’ International Women’s & Mother’s Day by the GCB Ladies Association.

Mrs. Gertrude Sangber -Dery, President of GCB Ladies Association, encouraged ladies in the banking sector to embrace the Bank’s digitization drive up and embrace the new customer centric-vibe of GCB

Bank PLC. Mr. Kojo Kwarteng, Head of Corporate Affairs of GCB Bank, answering question on the impact of the Electronic Levy (E-Levy) said GCB as a bank with national heritage would support national agenda.

“GCB Bank staff have undergone all the relevant training for a successful adoption and tactful execution of the levy” he said.

Mr. Samuel Nkrumah Asamoah, Nursing Officer at Princess Marie Louise Children’s Hospital who received the donation, said the items would reduce the pressure on management.

“The donation has come at the right time and is going to go a long way in this era of Covid-19 where the uses of tissue and detergent have become so important in health facilities because a lot of people have bought into the idea of relying on it,” he said.

He said the cash donation would also go into the needy accounts of the Hospital and patients who were unable to pay their bills or buy medication would be assessed by the clinical division and subsequently become needy fund beneficiaries.

Mr. Asamoah commended the Association and the Bank for the gesture and assured that the donation

would serve its intended purpose.

Mrs. Bambie Bamfo-Sam, a Health and Wellness Lifestyle Coach, urged Ghanaians to keep an active life because it prevented life related diseases such as diabetes, hypertension, and obesity.

“Do a physical activity that you like doing best, if it’s dancing, dance intentionally and consistently, walk, go to the gym, swim and do not forget to eat well too. Fitness is just a part of wellness so once you get fit, the other part of wellness is taken care of halfway,” she said.

Also present to participate in the

walk and support the Association’s drive to maintain fitness and strengthen corporate ties were the Legal Counsel, Ms Jessie Jacintho, Chief Internal Auditor, Mr Sina Kigmagate, Head, Customer Service, Mr. Muniru Mukhtar, Alhaji Mahmoud Gomda, Tema Regional Manager of GCB, VRA Ladies Association executives, some staff of Vanguard Assurance Company Limited, executives of Professional Managerial Staff Union of the Bank (PMSU) and executives of the Employees Union of GCB.

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MONDAY, MAY 16, 2022

Time to tackle triple crises of food, energy and finances, says Finance Minister Finance Minister Ken OforiAtta on Thursday emphasized the nation’s partnership with the African Development Bank in its development as he addressed journalists at a press conference to publicize the institution’s upcoming annual meetings.

Ofori-Atta described the meetings as seminal, in the context of a world seeking to rebalance in the wake of Covid-19 and the war in Ukraine.

“The hosting is long overdue.

Forty-one African economies are severely exposed to at least three concurrent crises – rising food prices, rising energy prices and tightening financial conditions – what finance ministers now call the dreaded three f’s,” Ofori-Atta said.

Throughout Africa food prices are currently around 34% higher, crude oil prices 60 % and global inflation is affecting all countries, the minister said, with inflation in Ghana standing at around 23.6%.

“The newly poor in Africa has increased by 55 million and approximately 35 million formal jobs are at risk,” the minister said. “This toxic mix of challenges exist even as we try to recover from the Covid-19 pandemic.”

“In the African Development Bank, we have a well-positioned institution with the convening power and a network of technical and financial

resources to significantly contribute toward finding robust solutions to some of these intractable problems that we are experiencing,” Ofori-Atta said.

During the annual meetings, scheduled from 23-27 May in the Ghanaian capital Accra, there would be a showcase of products and services of 13 indigenous industrialists and 5 fintechs on the sidelines.

Ofori-Atta also touched on the replenishment of the African Development Fund (ADF), the African Development Bank Group’s concessional lending arm. This year

marks the fiftieth anniversary of the Fund.

“One of the key issues is how to push our non-regionals to accept ADF going to the capital markets to leverage the $25 billion equity so we can get more resources,” Ofori-Atta said.

He said the ADF would benefit from cheaper interest rates, should it turn to the capital markets. Donors and multilateral institutions cannot meet the development demands Africa has.

Speaking of the cocoa value chain, Ofori-Atta noted the importance

of adding value to boost incomes of the country’s farmers in the lucrative cocoa industry. He said an emergency food plan proposed by the African Development Bank is designed to assist farmers, especially with fertilisers.

The plan, which hinges on providing certified seeds of climateadapted varieties to 20 million African farmers, would see the rapid production of 38 million tonnes of food across Africa over the next two years. With the disruption of supplies arising from the war in Ukraine, Africa is facing a shortage of at least 30 million metric tonnes of food, especially wheat, maize, and soybeans imported from Ukraine and Russia. The Bank has pledged to invest $1.3 billion in the plan’s implementation.

“Through our enduring partnership with the Bank, Ghana has undertaken significant infrastructure development,” the minister said.

He also noted other areas of collaboration, including education, modernisation of agriculture and financing for small businesses.

“It is a good time for this AGM to happen. It could lead to some really important change in how the global financial architecture is tackled, so that we can get the resources we need to be able to transform the continent,” Ofori-Atta said.

African Development Bank Group seeks US support for $1.5 billion emergency food plan for Africa The president of the African Development Bank Group, Dr. Akinwumi Adesina, made a compelling case, on Wednesday, for the United States to back the institution’s $1.5 billion emergency food production plan. The plan seeks to avert a looming food crisis in Africa caused by Russia’s war in Ukraine.

The Bank chief, and a panel of witnesses, testified about global food insecurity and persisting impacts of the Covid-19 pandemic before the US Senate subcommittee on State, Foreign Operations and Related Programs. Among others, senators Chris Coons (Delaware), Lyndsey Graham (South Carolina), Dick Durbin (Illinois), Chris Van Hollen (Maryland) and Roy Blunt (Missouri) participated in the hearing.

Senator Coons, Chair of the Senate subcommittee, stressed that the US should move fast and provide sufficient funding. “We should be concerned and even alarmed about the widening food security crisis that this war is causing for hundreds of millions far beyond Eastern Europe,” he said. Senator Graham expressed support for the establishment of a global fund for food security.

Speaking live via videoconference from Accra, Ghana, Adesina said the proposed Africa Emergency Food Production Plan would result in the

rapid production of 38 million tons of food across Africa over the next two years. “The African Development Bank, with your support, is prepared to meet this new challenge and others head-on,” he said.

The plan is anchored on the provision of certified seeds of climate-adapted varieties to 20 million African farmers. With the disruption of food supplies arising from the Russia-Ukraine war, Africa faces a shortage of at least 30 million metric tons of food, especially wheat, maize, and soybeans imported from the two countries.

An African Emergency Food Production Plan Adesina said the African Development Bank would invest $1.3 billion in the plan’s implementation.

He called on the US to make up the funding balance. “With US support

to reduce the $200 million financing gap – we can ensure the Africa Emergency Food Production Plan’s success,” he said.

The Africa Emergency Food Production Plan is currently before the African Development Bank’s Board of Directors for approval.

Also providing testimony were David Beasley, Executive Director of the World Food Programme and Ms. Tjada D’Oyen McKenna, Chief Executive Officer of nongovernmental organization Mercy Corps.

McKenna said, “A perfect storm is leading to heightened global food insecurity, worse, much worse than the previous food crises over the past decade.” She cited the Covid-19 pandemic and climate change as factors sharpening the current food

insecurity.

Beasley said food insecurity had already begun to rise sharply before the war. He said 135 million people were acutely food-insecure before the onset of the pandemic. “Covid comes along and that number went from 135 million to 276 million people marching toward starvation.”

Adesina emphasized that the African Development Bank’s food production plan would foster the production of nutritious food rather than simply calories. “One of the things we will be supporting through this emergency food production plan is bio-fortified foods. Sorghum fortified with iron. Nutritional supplementation is important,” he said The Bank president said the Bank was setting up meetings with international fertilizer companies to discuss ways to ensure that African farmers continued to have access to such inputs. “If we don’t solve the fertilizer problem, we cannot solve the food problem.

According to Adesina, the Africa Emergency Food Production Plan would have a long-term impact on Africa’s food productivity. The initiative will “drive the structural changes in agriculture, to unleash the full potential of Africa to become a breadbasket to the world,” he said.

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MONDAY, MAY 16, 2022

Emirates Group announces 2021-22 results The Emirates Group has released its 2021-22 Annual Report which shows strong recovery across its businesses. dnata returns to profitability, and significant revenue improvements were reported across both Emirates and dnata as the Group rebuilt its air transport and travelrelated operations which were previously cut-back or curtailed by the COVID-19 pandemic.

For the financial year ended 31 March 2022, the Emirates Group posted a loss of AED 3.8 billion (US$ 1.0 billion) compared with an AED 22.1 billion (US$ 6.0 billion) loss for last year. The Group’s revenue was AED 66.2 billion (US$ 18.1 billion), an increase of 86% over last year’s results. The Group’s cash balance was AED 25.8 billion (US$ 7.0 billion), up 30% from last year mainly due to strong demand across its core business divisions and markets, triggered by the easing of pandemic-related restrictions.

His Highness Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group, said: “This year, we focussed on restoring our operations quickly and safely wherever pandemicrelated restrictions eased across our markets. Business recovery picked up pace particularly in the second half of the year. Robust customer demand drove a huge improvement in our financial performance compared to our unprecedented losses of last year and we built up our strong cash balance.

“The health and safety of our people and customers remained a key priority as the world navigated its second full year of the pandemic. Across Emirates and dnata, we responded to dynamic market conditions with agility, and introduced innovative products and services to meet our customers’ needs and provide them with the best possible experience.

“2021-22 was also a significant year as the UAE marked its 50th anniversary and hosted the world at Expo 2020 Dubai which generated increased global engagement and visitation to the UAE. The Emirates Group was proud to play our part in contributing to the Expo’s success and to the UAE’s jubilee events.”

In 2021-22, Emirates received a further capital injection of AED 3.5 billion (US$ 954 million) from its ultimate shareholder, the Government of Dubai, and the Group tapped on various industry support programmes and availed a total relief of nearly AED 0.8 billion in 2021-22.

As Emirates and dnata ramped

up operations, employees previously on furlough or made redundant were recalled and rehired, and new recruitment drives were held to replenish the Group’s talent pool and boost its future capabilities. As a result, the Group’s total workforce increased by 13% to 85,219 employees, representing over 160 different nationalities.

In 2021-22, the Group collectively invested AED 7.9 billion (US$ 2.2 billion) in new aircraft and facilities, and the latest technologies to position the business for recovery and future growth. It also continued to progress its environmental strategy focussed on reducing carbon emissions, consuming resources responsibly, and conserving wildlife and habitats. During the year, the Group supported community, humanitarian and philanthropic initiatives in its various markets,

continue to give us the ability and advantage in delivering industryleading products and value to our customers. As Dubai and the UAE move ahead with its strategy for the next 50 years and beyond, the Emirates Group is well positioned to play our role in contributing to economic growth, facilitating global engagement, and making a positive impact on people and communities.”

Emirates performance Emirates’ total passenger and cargo capacity increased by 47% to 36.4 billion ATKMs in 2021-22, as the airline continued to reinstate passenger services across its network in line with the lifting of pandemic-related flight and travel restrictions.

From 120 destinations at the start of the financial year, to increased operations and capacity growth across over 140 destinations by 31 March 2022, Emirates was able to respond

as well as innovation incubators, and other programmes that nurture future solutions for industry growth.

Sheikh Ahmed said: “For the Emirates Group, 2021-22 was largely about recovery, after the toughest year in our Group’s history. It’s not just about restoring our capacity, but also augmenting our future capabilities as we rebuild. Our aim is to build back better and stronger, so that we can deliver even better experiences to our customers and offer more support to the communities we serve.

“We expect the Group to return to profitability in 2022-23, and are working hard to hit our targets, while keeping a close watch on headwinds such as high fuel prices, inflation, new COVID-19 variants, and political and economic uncertainty.

“Our steady investments in infrastructure, technology, people, and partnerships, will

dynamically to serve customer demand wherever opportunities arose, thanks to the resilience of its people and business model. In July, the airline launched a new route to Miami, bringing its total passenger gateways in the US to 12.

To serve the strong rebound in travel demand, Emirates deployed its flagship A380 aircraft to even more cities during the year, bringing its A380 network to 29 destinations as of 31 March 2022.

Helping travellers access even more destinations, in 2021-22, Emirates reinforced its strategic partnerships with Qantas and flydubai, and expanded its interline and codeshare partnerships across Europe, the Americas, Africa and Asia including with: Aeromar, airBaltic, Airlink, Azul, Cemair, Garuda Indonesia, Gulf Air, Maldivian, South African Airways and TAP Air Portugal. Emirates also

signed agreements and launched initiatives with tourism partners in various destinations to support travel and tourism recovery.

Emirates received its final five new A380 aircraft during the financial year, all equipped with its latest cabin interiors including Premium Economy seats. It also phased out 2 older aircraft comprising of 1 Boeing 777-300ER and 1 Freighter, leaving its total fleet count at 262 at the end of March. Emirates’ average fleet age remains at a youthful 8.2 years.

Emirates’ order book of 197 aircraft remains unchanged at this time. The airline is firmly committed to its long-standing strategy of operating a modern and efficient fleet, which underscores its “Fly Better” brand promise, as young aircraft are better for the environment, better for operations, and better for customers.

With significantly enhanced capacity deployment across most markets, Emirates’ total revenue for the financial year increased 91% to AED 59.2 billion (US$ 16.1 billion).

Currency fluctuations this year impacted the airline’s profitability negatively by AED 348 million (US$ 95 million).

Total operating costs increased by 30% from last financial year. Cost of ownership (depreciation and amortisation) and fuel cost were the two biggest cost components for the airline in 2021-22, followed by employee cost. Fuel accounted for 23% of operating costs compared to 14% in 2020-21. The airline’s fuel bill more than doubled to AED 13.9 billion (US$ 3.8 billion) compared to the previous year, driven by a higher uplift of 66% in line with capacity expansion and a higher average fuel price which was up by 75%.

With the removal of pandemicrelated flight and travel restrictions globally, the airline managed to substantially improve its financial results and reported a loss of AED 3.9 billion (US$ 1.1 billion) after last year’s AED 20.3 billion (US$ 5.5 billion) loss, and a loss margin of 6.6%, significantly improved compared to 65.6% last year.

Emirates carried 19.6 million passengers (up by 199%) in 202122, with seat capacity up by 150%.

The airline reports a Passenger Seat Factor of 58.6%, compared with last year’s passenger seat factor of 44.3%; and a 10% decline in passenger yield to 35.1 fils (9.6 US cents) per Revenue Passenger Kilometre (RPKM), due to the change in route mix, fares and currency. Seat load factor and yield results cannot be compared

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continued from page 14 against the previous year’s performance due to the ongoing unusual pandemic situation.

Emirates continued to invest in its products and services to deliver ever better customer experiences.

This year, it announced a major retrofit programme to equip 120 of its 777 and A380 aircraft with its new Premium Economy seats and the latest cabin interiors.

It also accelerated digital initiatives to provide customers with smoother and safer journeys, from the quick and secure verification of COVID-19 travel documents, to more biometrics and contactless touchpoints at its Dubai hub.

Emirates continued to lead the industry with initiatives that provide customer assurance as travel restrictions eased and more people made travel plans. It extended its generous rebooking waivers and complimentary COVID-19 medical cover for all customers; and introduced new ways for Emirates Skywards members to earn Miles while extending the expiry of miles and tier status.

In this 2nd pandemic year, Emirates SkyCargo once again put in a stellar performance and contributed to 40% of the airline’s total transport revenue through its ability to respond rapidly to changing demand patterns in a distorted global marketplace.

Emirates SkyCargo maintained its edge in the global airfreight industry by focusing its customers, bringing innovative solutions to the market, and leveraging its fleet and network capabilities.

Rebuilding its network and capacity, the cargo division intelligently deployed its freighter fleet and belly-hold capacity, to meet customer needs. By 30 June 2021, it had restored services to over 90% of its pre-pandemic network.

During the year, Emirates SkyCargo continued to play an important role in getting COVID-19 vaccines and other medical supplies to communities around the world, and keeping trade lanes open for food supplies, e-commerce and other essential goods. In June 2021, it invested to scale up its pharma cool chain infrastructure in Dubai and by March 2022, Emirates SkyCargo had transported 1 billion doses of COVID-19 vaccines.

At the Dubai Airshow 2021, Emirates announced a US$ 1 billion investment to acquire 2 new Boeing 777 freighters and convert 4 existing 777-300ER aircraft into freighters.

With steady and strong air freight demand throughout the year, Emirates’ cargo division reported a new record revenue of AED 21.7 billion (US$ 5.9 billion),

an increase of 27% over last year.

Freight yield per Freight Tonne Kilometre (FTKM) decreased by 3% as more cargo capacity returned to the global market, but generally remained at high levels compared to the pandemic marketplace due to steady and strong demand.

Tonnage carried increased by 14% to reach 2.1 million tonnes, due to the growth in available bellyhold capacity for the entire year with the reinstatement of more passenger services. At the end of 2021-22, Emirates’ SkyCargo’s total freighter fleet stood at 10 Boeing 777Fs. Emirates’ hotels portfolio doubled revenue over last year to AED 602 million (US$ 164 million) as it re-opened more facilities to serve the upswing in tourism traffic and the gradual recovery of the meetings and conferences industry.

During the year, Emirates successfully restructured and extended various aircraft leases.

The support from aviation lessors and financing partners during these challenging times reflect the financial community’s confidence in Emirates’ business model, and its mid to longer term prospects.

In addition to the AED 9.7 billion (US$ 2.6 billion) financing that was raised for aircraft and general corporate purposes in 2021-22, Emirates has already received committed offers to finance two aircraft deliveries due in 2022-23.

Emirates closed the financial year with solid cash assets of AED 20.9 billion (US$ 5.7 billion), 38% higher compared to 31 March 2021. dnata performance Recovery from the pandemic was felt across all dnata businesses, and in 2021-22 dnata returned to profitability with a profit of AED 110 million (US$ 30 million).

With growing flight and travel activity across the world, dnata’s total revenue increased by 54% to AED 8.6 billion (US$ 2.3 billion). dnata’s international business accounts for 62% of its revenue. dnata continued to lay the foundations for future growth with investments in 2021-22 amounting to AED 370 million (US$ 101 million).

During the year, dnata invested significantly in its cargo handling capabilities. It expanded existing facilities in Sydney, Australia; opened a state-of-the-art cargo centre at London Heathrow airport; and announced a fully automated cargo centre to be built at ‘dnata Cargo City’ at Amsterdam Schiphol Airport.

It also introduced an advanced “OneCargo” system which digitises and automates business and operational functions at its

Iraq cargo operations, with plans to roll out the system across its global cargo network.

In 2021-22, dnata’s operating costs increased by 14% to AED 8.4 billion (US$ 2.3 billion), in line with expanded operations in its Airport Operations, Catering and Travel divisions across the world. dnata’s cash balance improved

by AED 208 million to AED 4.9 billion (US$ 1.3 billion). Net cash used in financing activities, primarily payments for loans and leases, amounted to AED 745 million (US$ 203 million), while the business utilised net cash of AED 246 million (US$ 67 million) in essential investing activities.

The business saw a positive operating cash flow of AED 1.2 billion (US$ 332 million) in 202122, a reflection of the substantial improvements in revenues.

Revenue from dnata’s Airport Operations, including ground and cargo handling increased to AED 5.7 billion (US$ 1.6 billion).

The number of aircraft turns handled by dnata globally grew by 82% to 527,501, cargo handled increased by 10% to 3.0 million tonnes, reflecting the increase in flight activity across the globe as dnata’s customers re-started their operations wherever market restrictions on flights and travel were lifted.

During 2021-22, dnata expanded its global airport operations footprint into Africa. It signed a concession agreement with The Government of Zanzibar, where dnata will oversee the operations of the island’s newly-built international terminal with its partners, including Emirates Leisure Retail (ELR) who will partner with MMI as master concessionaire for all food and beverage, duty free and commercial outlets at the terminal. marhaba, dnata’s airport hospitality brand, marked its 30th year of operations with the launch of its signature meet and greet services at four of Australia’s major airports, a new lounge in Zurich Airport, and a re-designed experience at its flagship lounge at Dubai International. dnata’s Catering business accounted for AED 1.7 billion (US$ 455 million) of dnata’s revenue, up by 60%. The inflight catering business uplifted 39.9 million meals to airline customers, more than double the number of meals from last year, as its airline customers across the world restored their flight operations.

Significant customer wins during the year include BA CityFlyer, which led to dnata Catering launching operations at London City Airport; and the global inflight retail services contract for easyJet where dnata’s

team of inflight retail experts will develop and manage bespoke onboard retail programmes and solutions for the airline.

It also saw significant activity in Australia. As the country reopened its borders to international travellers, dnata worked closely with airline customers to support their resumption of flight operations. dnata Catering also continued to grow its retail food business with ready-made meals developed by Snapfresh Australia launched in Aldi and Costco stores nationwide.

Revenue from dnata’s Travel Services division has significantly grown by 434% to AED 694 million (US$ 189 million). The reported total transaction value (TTV) of travel services sold increased by 912% to AED 2.3 billion (US$ 632 million), a dramatic reversal from last year. These increases reflect last year’s abnormal situation where the business saw high levels of COVID-19-related booking cancellations.

During the year, dnata introduced several new products and services in the UAE, capitalising on its market expertise, Dubai’s open borders for international travel, the city’s hosting of Expo 2020 as well as other major conferences and sporting events.

For its corporate travel customers, dnata partnered with ExpensePoint to offer an advanced expense reporting solution; renewed a partnership with one of the world’s largest VAT reclaim specialists that will bring additional saving opportunities for duty travel claims; and implemented hybrid meetings and events solutions to provide customers a sustainable alternative to hosting corporate engagements during lockdown.

In the UK, dnata’s Travel Republic brand introduced a new ‘Secure Trust Account’ for package holiday customers that guarantees prompt refunds for customers who have to cancel their flight-inclusive package holiday, as funds are kept secure in a separate account. dnata also launched its Gold Medal brand in the Kingdom of Saudi Arabia this year, offering its extensive portfolio of travel products to independent travel agents.

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| MARKET REVIEW

MONDAY, MAY 16, 2022

WEEKLY MARKET REVIEW FOR WEEK ENDING - MAY 6, 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

17.0%

Weekly Interbank Interest Rate

17.45%

Inflation for February, 2022

19.4%

End Period Inflation Target – 2022

8.0%

Budget Deficit (% GDP) – Dec, 2021

9.7%

2022 Budget Deficit Target (%GDP)

7.4%

Public Debt (billion GH¢) – Dec, 2021

351.8

Debt to GDP Ratio – Dec, 2021

74.4%

STOCK MARKET REVIEW The Ghana Stock Exchange retreated for the week on the back of a decline in GCB Bank’s share price. The GSE Composite Index (GSE CI) lost 0.25 points (-0.01%) to close at 2,690.94 points, reflecting year-to-date (YTD) loss of 3.53%. The GSE Financial Stocks Index (GSE FI) also lost 0.46 points (-0.02%) to close at 2,209.24 points, reflecting year-to-date (YTD) gain of 2.67%.

Market capitalization inched up marginally by 0.07% to close the week at GH¢63,859.57 million, from GH¢63,817.52 million at the close of the previous week.

This reflects YTD decrease of 0.99%.

Trading activity registered a total of 10,671,215 shares valued at GH¢10,716,327.61 changing hands, compared with 87,630,871 shares, valued at GH¢89,227,903.01 in the preceding week.

MTN dominated both volume and value of trades for the week, accounting for 95.02% and 94.07% of volume and value of shares traded respectively .

The market ended the week with no leader and 1 laggard as indicated on the table below.

THE CURRENCY MARKET The Cedi marginally depreciated against the USD for the week. It traded at GH¢7.1132/$, compared with GH¢7.1128/$ at week open, reflecting w/w and YTD depreciations of 0.01% and 15.56% respectively. This compares with YTD appreciation of 0.50% a year ago.

The Cedi appreciated against the GBP for the third consecutive week. It traded at GH¢8.7859/£, compared with GH¢8.9333/£ at week open, reflecting w/w appreciation and YTD depreciation of 1.68% and 7.50% respectively. This compares with YTD depreciation of 1.80% a year ago.

The Cedi retreated against the Euro for the week.

It traded at GH¢7.5280/€, compared with GH¢7.4963/€ at week open, reflecting w/w and YTD depreciation of 0.42% and 9.30% respectively. This compares with YTD appreciation of 1.46% a year ago.

The Cedi meanwhile appreciated against the Canadian Dollar for the week. It opened at GH¢5.5547/C$ but closed at GH¢5.5235/C$, reflecting w/w appreciation and YTD depreciation of 0.56% and 14.16% respectively. This compares with YTD depreciation of 3.97% a year ago.

MONDAY, MAY 16, 2022

19

| MARKET REVIEW

BUSINESS TERM OF THE WEEK

COMMODITY MARKET Crude oil prices rose up again for the week. However, worries about an economic downturn that could impact fuel demand persisted. Brent futures traded at US$113.12 a barrel on Friday, compared to US$107.58 at week open.

This reflects w/w and YTD gains of 5.15% and 45.44% respectively.

Gold prices were up on Friday and for the week despite a rally in the U.S dollar and Treasury yields over the U.S. Federal Reserve’s hawkish stance. Gold settled at US$1,883.50, from US$1,863.60 last week, reflecting w/w and YTD appreciation of 1.07% and 3.00% respectively.

Prices of Cocoa retreated for the week. The commodity traded at US$2,471.00 per tonne on Friday, from US$2,604.50 last week, reflecting w/w and YTD loss of 5.13% and 1.94% respectively.

GOVERNMENT SECURITIES MARKET Government raised a sum of GH¢2,130.58 million for the week across the 91-Day, 182-Day and 364-Day Treasury Bills, 2-Year Fixed Rate Note and 5-Year Fixed Rate Bond. This compared with GH¢453.36 million raised in the previous week.

The 91-Day Bill settled at 17.88% p.a from 17.41% p.a. last week whilst the 182-Day Bill settled at 18.81% p.a from 18.53% p.a. last week. The 364-Day Treasury Bill settled at 20.65% p.a from 19.67% p.a last week. The 2-year FXR Note settled at 21.50% p.a whiles the 5-Year FXR Bond settled at 22.30%.

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

INTERNTIONAL COMMODITIES PRICES

Price Skimming: Price skimming is a product pricing strategy by which a firm charges the highest initial price that customers will pay and then lowers it over time. As the demand of the first customers is satisfied and competition enters the market, the firm lowers the price to attract another, more price-sensitive segment of the population. The skimming strategy gets its name from “skimming” successive layers of cream, or customer segments, as prices are lowered over time.

Source: https://www.investopedia.com/ terms/p/priceskimming.asp

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

RESEARCH TEAM Name: Ernest Tannor Email:etannor@cidaninvestments.com Tel:+233 (0) 20 881 8957 Name: Audrey Asiedua Wiafe Email:aaudrey@cidaninvestments.com Tel:+233 (0) 57 840 2700 Name: Moses Nana Osei-Yeboah Email:moyeboah@cidaninvestments.com Tel:+233 (0) 24 499 0069

CORPORATE INFORMATION CIDAN Investments Limited CIDAN House Plot No. 169 Block 6 Haatso, North Legon – Accra Tel: +233 (0) 26171 7001/ 26 300 3917 Fax: +233 (0)30 254 4351 Email: info@cidaninvestmens.com Website: www.cidaninvestments.com Disclaimer The contents of this report have been prepared to provide you with general information only. Information provided on and available from this report does not constitute any investment recommendation.

The information contained herein has been obtained from sources that we believe to be reliable, but its accuracy and completeness are not guaranteed.

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|

NO. B24/317 | NEWS FOR BUSINESS LEADERS

MONDAY, MAY 16W, 2022

FAO puts forward proposals to address current and future food shortages The head of the Food and Agriculture Organization of the United Nations (FAO) today called on G7 nations to help anticipate future food shortages, as the war in Ukraine squeezes supplies, pushes prices to record highs and threatens already vulnerable nations across Africa and Asia.

“We need to actively identify ways to make up for potential future gaps in global markets, working together to foster sustainable productivity increases where possible,” DirectorGeneral Qu Dongyu told G7 Agriculture Ministers meeting in Stuttgart, Germany.

Qu was invited by the German presidency of the G7 to discuss the consequences of the conflict in eastern Europe on global food security.

Already in 2021, approximately 193 million people were acutely food insecure and in need of urgent assistance, up nearly 40 million people from 2020.

“It is in this dramatic context that we now face the war in Ukraine,” Qu

said.

Russia and Ukraine are important players in global commodity markets, and the uncertainty surrounding the conflict has caused prices surges, particularly of wheat, maize and oilseeds, as well as fertilizers. These increases come on top of already high prices driven by robust demand and high input costs as a result of the COVID-19 pandemic.

In March, the FAO Food Price Index reached its highest level (160 points) since its inception in 1990 and only dipped slightly in April.

Wheat export forecasts for both Russia and Ukraine have been revised down since the start of the war. And despite other market players such as India and the European Union boosting their offers, supply remains tight and prices will likely remain elevated in the coming months, Qu said.

Countries that are heavily reliant on wheat imports include Egypt and Turkey, but also a number of Subsaharan countries such as Congo, Eritrea, Madagascar, Namibia,

PUBLISHED BY BUSINESS24 LTD. TEL: 030 296 5297, 030 296 5315.

Somalia and Tanzania. Meanwhile, countries that are heavily dependent on fertilizers imported from Russia include key cereal and high value commodity exporting countries like Argentina, Bangladesh and Brazil.

Offering solutions According to FAO, market transparency is crucial. That is why FAO welcomes every effort to strengthen and expand the Agricultural Market Information System (AMIS), an inter-agency platform designed to enhance food market transparency launched in 2011 by G20 Agriculture Ministers following the global food price hikes in 2007/08 and 2010. AMIS is hosted

by FAO. FAO has also proposed a global Food Import Financing Facility to help nations deal with rising food prices. The mechanism, which is strictly based on needs and limited to low and lower middle-income, net food-importing countries and selected beneficiaries of the International Development Association, could benefit almost 1.8

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

billion people in the world’s 61 most vulnerable countries.

The facility has been designed to include smart conditionality to act as an automatic stabilizer for future funding. Eligible countries will commit to added investments in agriculture, thus reducing future import needs.

In his address to the G7 meeting, the FAO Director-General also called on governments to “refrain from imposing export restrictions, which can exacerbate food price increases and undermine trust in global markets.”

Instead, we must “ensure that any measures taken to address the crisis do not exacerbate food insecurity and on the contrary increase resilience,” Qu said.

The meeting in Stuttgart was hosted by German Agriculture Minister Cem Özdemir and saw a Guest Statement from his Ukrainian colleague, Mykola Solsky.