NEWS FOR B U SINESS LEA DERS
BUSINESS24.COM.G H | WEDNESDAY, MAY 25, 202 2
7 oil companies fined GH¢1.5m //MORE ON PAGE 3
Trade promoters tasked to build resilient MSMEs sector
MTN Group CEO pays working visit to Ghana
By Patrick Paintsil
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Current ratings of the economy and its ramifications By Hakeem Shaibu Sovereign and credit ratings are not new. They date as far back as 1906 when Standard Statistics was formed as a company with a mandate of rating municipal bonds, publishing corporate bonds and sovereign debts. In 1941, Standard Statistics merged with Poor’s Publishing to form what is known today as Standard and Poor’s Corporation. Other well-known rating agencies have a similar checkered history; Moody’s started ratings in 1914 and Fitch introduced their letter rating concepts in 1923. In spite of the shady role of credit
ratings in 2007-2008 that lead to the great recession of 20082009, rating agencies have remained prominent in economic landscapes across the world. Credit rating, according to Finney (2021), offers retail and corporate investors with material information that guides them in establishing whether bond issuers, related debt instruments and fixed-income securities will be able to meet their financial obligations. These ratings offer independent assessment of companies and economies of sovereign nations that supports investors in //MORE ON PAGE 4
Investor confidence, cedi //MORE ON PAGE 5
ECO: Instruments and programs ready by tenure of Parliament Barrow
By Kwaku Sakyi-Danso/Lome-Togo //MORE ON PAGE 7
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Let’s take healthcare lessons from the pandemic The coronavirus pandemic has exposed the dire state of healthcare in various African economies and also highlighted the need for aggressive investments in strong health systems and pharmaceuticals industry. Despite the rushed actions of various governments to keep up with health demands brought about by the pandemic, there is still much to be done and most of the knee-jerk interventions must be strengthened as we seek to build resilience in the post-pandemic era. Reforms in healthcare have become even more critical as we seek to shift towards preventive health delivery across the continent. Key among these measures will be the complete digitalisation of health delivery systems across the continent backed by an efficient pharmaceutical value chain that is guided by regulatory agency. One critical area of attention is vaccine production, a weakness that has been well exposed by the pandemic with the recent vaccine wars placing most economies in difficult
conditions. It has been estimated that Africa will need about US$66billion to fund its healthcare demands. Some experts have recommended the need for private funds to ensure that most African nations could own their public and private health enterprises to address the health concerns of its youthful population. The healthcare situation in Ghana leaves much to be desired with myriads of challenges hampering access to quality and affordable care. It is therefore welcoming that the leadership of the continent is working out strategies and policies to tackle these longstanding bottlenecks to efficient and effective delivery of healthcare across Africa. As a continent, we cannot depend solely on external sources for vital drugs and healthcare innovations to be able to build a healthy continent that is poised for robust growth and economic transformation, especially as we have witnessed with the politics around the Covid vaccines.
Trade promoters tasked to build resilient MSMEs sector By Patrick Paintsil
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Trade and Industry Minister Alan Kwadwo Kyeremanten has urged trade promoters to supervise the use of regional value chains to exploit market opportunities for micro, small and medium enterprises to attract the right kinds of investments to push both domestic and foreign trade. Opening the 13th World Trade Promotion Organisation (WTPO) Conference and Awards in Accra, he indicated that the need for global trade promotion organisations to effectively support micro, small and medium enterprises to overcome the hurdles of the post-Covid economy is now a development imperative.
“Trade promotion organisations should identify existing or potential companies that can leverage opportunities for exports, particularly regional markets arising from trade disruptions in the supply of goods to those markets,” he said. The minister was emphatic that MSMEs play a critical role in employing majority of the global workforce and urged the need for aggressive private sector support to enhance their productivity levels. “To achieve this, governments must now put trade at the centre of their development agenda and programmes and projects that enhance trade must be
aggressively pursued by trade promotion organisations,” he noted. The conference on the theme “Bold solutions for resilience and recovery” convened the global trading community comprised mostly of small-sized enterprises to deliberate, network and forge lasting partnerships that will birth sustainable innovations to advance trading across global frontiers. Chief Executive Officer of the Ghana Export Promotion Authority (GEPA), Dr. Afua Asabea Asare, in her opening remarks, indicated that the authority remains committed to supporting small businesses to build on their capacities and the right kinds of resilience that will enable them to compete favourably on international markets. “Our interconnected and independent global system is incredibly fragile and vulnerable. It is therefore no wonder that countries, communities and corporations are keen to build resilience capabilities across multiple dimensions—human, financial, operational and technological,” she indicated. She added: “At the pinnacle of the Covid-19, it is small businesses that have been the cornerstone of progress and sustainability. Risks are threats, but they also bring opportunities.”
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7 oil companies fined GH¢1.5m Seven petroleum service providers (PSPs) have been fined a combined GH¢1.5 million by the National Petroleum Authority (NPA) for engaging in illicit third-party trading of petroleum products and unlawful lifting of petroleum products. The companies are Moari Oil Company Limited, Rodo Oil Company Limited, MBA Global Limited, Cigo Energy Limited, Torrid Global Limited, Naddif Company Limited and GAT Oil. Four of them — MBA Global, Rodo Oil, Naddif Ltd and GAT Oil — have additionally been given one-month suspension from their operations. The first infraction happened in August last year, with the rest of the illegalities being realised in November the same year. Oil marketing companies (OMCs) commit unlawful lifting if they convey products from an unregistered or unauthorised
bulk supply point (depot), such as a tanker yard or port/harbour, without any valid documentation. A company engaging in such unlawful activities ends up not paying taxes and other petroleum margins to the authorities. A third-party delivery is when a petroleum product market company (PPMC) supplies products to a retail outlet or bulk consumer not registered by the NPA under the PPMC. For instance, this will occur when OMC ‘A’ supplies a product such as diesel to the retail outlet
of OMC ‘T’. The NPA gave the companies 14 days to settle the fines or be suspended for three more months. The Daily Graphic gathered that none of the companies had so far made any payments related to the fines. All the companies suspended have been removed from the NPA’s data management system until they make good the fines. Fines A statement by the NPA on May 23, 2022, said while Moari Oil would pay a fine of GH¢50,000, made up of GH¢10,000 for third party supplies it engaged in and GH¢40,000 for the unlawful lifting of petroleum products, Rodo Oil would pay a GH¢350,000 fine — GH¢10,000 for engaging in thirdparty supplies and GH¢340,000 for the unlawful lifting of petroleum products. The NPA also fined MBA Global GH¢85,000, covering GH¢10,000
for third-party supplies and GH¢75,000 for the unlawful lifting of petroleum products, while Cigo Energy will pay GH¢245,000 — GH¢10,000 for engaging in unauthorised third-party supplies and GH¢235,000 for the unlawful lifting of petroleum products. “That Torrid Global pays a fine of GH¢550,000, comprising GH¢10,000 for engaging in third-party supplies and GH¢540,000 for the unlawful lifting of petroleum products,” the statement said. The NPA said Naddif Co., which also engaged in alleged illegalities, would pay a fine of GH¢150,000, comprising GH¢10,000 for engaging in third-party supplies and GH¢140,000 for the unlawful lifting of petroleum products. It said GAT Oil would pay a fine of GH¢120,000 — GH¢10,000 for engaging in third-party supplies and GH¢110,000 for the unlawful lifting of products.
MTN Group CEO pays working visit to Ghana MTN Group CEO, Ralph Mupita, paid a day’s working visit to Ghana on Friday, May 20, 2022. He was accompanied by the Chairman of MTN Group, Mcebisi Jonas, Chika Ekeji, Group Chief Strategy and Transformation Officer and Nompilo Morafo, Group Chief Sustainability and Corporate Affairs Officer. The purpose of the visit was to reaffirm MTN’s commitment to the socioeconomic development of Ghana and strengthen relationships with key stakeholders. Ralph Mupita and the team from MTN Group together with the MTN Ghana team led by the CEO Selorm Adadevoh began the day by meeting with the South African High Commissioner to Ghana, H.E Grace Janet Mason. They continued with their engagements with meetings at the Bank of Ghana, the Ministry of Communications and Digitalization, the Ministry of Finance and ending the day with a meeting with members of the MTN Ghana Board of Directors. Key areas of discussions were updates on key strategic projects including Localization and other ICT development initiatives such as the Girls in ICT project (which MTN has committed GHS10 million spread over 3 years), the ICT Hub Project (which is in early stages) and discussions on a project that seeks to position Ghana as the center of ICT for the continent. Ralph Mupita reiterated
MTN’s commitment to support Government’s developmental initiatives and reaffirmed Ghana as a key market for the MTN Group. “Ghana remains a key market for us as a Group, and we are keen on demonstrating our commitment to the progress of
the country through meaningful partnerships with our relevant key stakeholders” he said. Ralph Mupita had a separate engagement with a select number of journalists in Accra to share his views on current technological developments in Africa and MTN’s
strategy and commitment to the Ghana market. He expressed the company’s commitment to investing in the network, saying the Ghana business’ performance over the years was a result of sustained investment in the business. The Group CEO also had the opportunity to share insights on MTN’s outlook towards its strategic vision, Ambition 2025. The visit to Ghana is Ralph’s fourth since he assumed office as Group CEO and President in 2020. The stakeholder engagements are part of his commitment to fostering cordial working relationships and to better understanding areas of collaboration between MTN, the private sector and the Government’s in the markets where MTN operates.
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Current ratings of the economy and its ramifications continued from page 1
determining the true strength of their economies and consequently, credit-worthiness. The most influential rating agencies are the Standard and Poor’s, Moody’s and Fitch. These three rating agencies cover about 85% of the ratings market. Together with other agencies, they have provided guidance to investors world-wide for over a century now. In 2003, Fitch and Standard and Poor’s rated Ghana as B Positive and B+ Stable respectively. These remained relatively stable until 2009 when the economy started flip-flopping between negative, stable and developing till date. What is peculiar, however, is that never has Fitch rated Ghana a B- Negative as seen in their 2022 rating. This is the lowest the economy of the nation has gone as far as Fitch ratings are concerned, resulting in animated public discussions and conversations. Indeed, all economic actors and segments, including the ordinary citizens have to be concerned because, these ratings have ramifications. First, negative credit ratings do
not only jolt the lending investor away; it has a potential of also denying a nation foreign direct investments (FDIs) crucial for the growth of that economy. Most foreign investment firms looking to enter into an economy to do business utilize the economic ratings as part of the complex matrix of considerations that lead them to eventually settle on a country of choice. In the case of Ghana, being the second most populous nation in the West African sub-region with over 30 million people, offers a huge market that could attract massive FDIs (which went up to USD2.6BN in 2020 alone). However, this great advantage could be tainted with negative branding and economic outlooks based on the ratings it has gotten. To this end, the foreign exchange advantage and related economic positives FDIs bring is dwindled and particularly, for the ordinary citizenry, the jobs opportunities that could have been availed gets diminished. As a matter of not getting adequate inflow from bonds
issued and in view of low FDIs (that could have boosted even tax proceeds), the Government of Ghana would have to look within to raise funding for government business, including funding for badly needed infrastructure. This could be the starting point of open market operations (OMO), which has a crowd out effect; where a rise in government Treasury Bills and other securities ostensibly to attract funds can pose a threat to commercial bank’s access to deposits. A rise in T-Bill such as the 91 days rate rise from 13.66% to 17.115% between March and May this year, also triggers a round effect that could spiral high bank lending rates, expensive loans, low repayment capacities and further complications that could dampen our past economic gains. In essence, such situations lead to very expensive borrowing rates for small to medium enterprises as these often lack negotiation powers and financial engineering to float above the tides. There is also an increased cost to banks, who now have to advertise more, involve in greater
engagement with their clients, deposit promotions and involve in extensive presentations to gain a stable deposit position. Additionally, they would pay more in higher interest on deposits that could impact on their overall profitability and growth trajectory, particularly so since the cost-toincome ratio has been declining from it’s high of 50% since 2018 among banks in Ghana. In view of this, banks need to begin early to psyche themselves up and budget adequately in 2022 and beyond for these possibilities. They might also have to improve their NFIs, which has been hovering mostly below 35% of Ghanaian banks total income since 2015, to reduce the impact of the effects of negative economic ratings and do one more thing: reduce stakeholder expectations of high growth and business expansion. Hakeem Shaibu Head Of Sales Stanbic Bank Ghana
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Investor confidence, cedi By Simon Kpankpah Investors put their money into a business with the primary aim of making more money or profit. Some factors may cause that aim not to be realised. And one of these factors is exchange rate risks. The risk that you would have to pay more than you planned to buy a foreign currency from a foreign market. There are three major types of exchange rate risks, namely transaction risk, translation risk and economic risk. Transaction risk: is the risk that a company faces when it is buying a product from a company located in a foreign country. If Ghana is buying a product from a US market and the Ghanaian cedi is lower (depreciated compared to the US dollar), then the Ghanaian businessman will have to pay with more cedis for the same product it would have paid for with less cedis, for example, four months ago. Exchange rate GH¢ 6.3 = $1; therefore, an item that cost $100 will cost the Ghanaian businessman GH¢630.00 (GH¢6.3 × 100) In April 2022 the exchange rate was GH¢ 7.8 = $1. The same product that cost $100, will cost the Ghana businessman GH¢ 780 (GHC 7.8 × 100). The difference of GH¢150 (780 - 630) is a loss to the investor as a result of the depreciation.
If the Ghana cedi continues to depreciate, the loss gap will widen for the investor (businessman) and eventually put him or her out of business. Translation risk: If a parent company has a subsidiary in another country, it could face huge losses when the subsidiary assets are consolidated with the assets of the parent company. What it means is that the subsidiary will have its assets value lowered due to the weaker currency in that country. In this case, if a US company consolidates its financial statement with its subsidiary in Ghana, the Ghanaian subsidiary will have lower asset value due to the weaker exchange rate and hence reducing the total weight of all the company assets put together. Economic risk: Is the change in competitive strength of imports and exports. If Ghana and Cote d’Ivoire both export cocoa to US or UK market, then the country with a weaker currency will attract more buyers for its product because fewer currency is required to buy from its market. Market effect, weak cedi This will create problems like: Poor access to sources of finance (loans). Due to the depreciation of the cedi, consolidated assets will have lower values and will not be able to give good collateral
to secure great loans for intended projects and expansion of business. It would also lower the returns on capital employed (ROCE). ROCE is the measure of a company’s profit in relation to the capital employed. As the loss margin widens, due to the continuous loss caused by the depreciation of the cedi, the profit margin compared to capital employed will be lower for investment in Ghana compared to another country with a stronger currency. That is, one dollar invested in China will give a better rate of return than it will in Ghana. Additionally, it would lower profit margin and undermining investor confidence. As illustrated above, the depreciation will cause the loss gap to widen hence reducing profit significantly. If the loss margin continues to widen, in the long run, the Ghanaian economy will look competitively unattractive causing foreign investors to exit the shores of Ghana. Suggestions Production; the government, stakeholders and policymakers should focus more on production through the following strategies; tax incentives and subsidies. These strategies will definitely increase production in sectors that can attract foreign exchange like agriculture, entertainment,
and energy (oil), among others. This will increase export and also positive balance of payment giving some strength to the weaker cedi to recover. Internal revenue: the government must demonstrate the ability to generate internal revenue through tax and export to pay off the high current debt of the country when they fall due. This makes the passing of the E-Levy bill a quicker and great implementation strategy. Funding: the government may also consider bringing in more foreign loans like the Eurobond to give the cedi more strength to recover against the dollar. This is only possible if government can demonstrate the ability to pay off loans on time due to the poor credit rating. The effort of government to cut down on executive expenditure is a good commitment. Simple currency hedging strategies include forward contract, currency options and swaps. You may speak to a professional accountant, your business advisory team or your banker. The writer is an Accountant & Finance Professional, EMBA, University of Ghana. E-mail: skpankpah@gmail.com
Mayor of New York to support Tourism Drive in Ghana The Mayor of New York, Mr Eric Adams has expressed his determination to support Ghana’s tourism drive aimed at making the country the tourism hub of Africa. In this regard, the Ministry of Tourism, Arts and Culture (MOTAC) and the office of the New York Mayor will work out joint strategies to achieve the desired results. Mr Adams was speaking after the conferment of the title of a Tourism Ambassador bestowed on him by the Minister of Tourism, Arts and Culture, Dr Ibrahim Mohammed Awal in New York at the weekend on the sideline of a Global Citizen Prize and Summit. The Global Citizen Prize and Summit seek to recognize the work of remarkable changemakers working to take exceptional actions to end extreme poverty in their communities and foster social change across the globe. Mr Adams expressed his readiness to help increase the number of tourists from New York in particular and the United
States in general to Ghana, adding that Ghana has all the attractions to enhance international tourism. “I have been to Ghana, and I enjoyed my stay in that beautiful country, Ghana is a peaceful country with a globally respected precedence”, Mr Adams emphasized. He noted that the launch of ‘The Year of Return’ project by the President, Nana Addo Dankwa Akufo-Addo was a clear indication of Ghana’s commitment to rally
the black race and unite them to their motherland. Dr Awal on his part stated that America is the biggest source of international arrivals to Ghana, accounting for about 30 % of all tourists over the years. He said the Ministry of Tourism, Arts and Culture’s goal is to attract two million international tourists to Ghana annually from 2024 and added that the support from the New York mayor would help achieve this objective.
The Minister said that Ghana has a rich and diverse culture and over 30 forts and castles making the country an attractive tourism destination. Dr Awal noted that tourism is not just a source of leisure but also an opportunity to promote trade and investment. He congratulated Mr Adams for being the second black mayor of New York.
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ECO: Instruments and programs ready by tenure of Parliament ---Barrow By Kwaku Sakyi-Danso/Lome-Togo As the corona virus pandemic pushed the implementation of the West African sub-regional single currency ECO back to 2027, chairman of the Committee on Macro-Economic Policy and Economic Research, Hon Barrow Kebba K. is optimistic of the Community Parliament to play its key role by the end of its life span. According to him, his committee are going to work to ensure all legislative instruments and programmes needed for the implementation of ECO are put in place and finalised before the life span of the current parliament ends. “By the time the 6th Parliament of ECOWAS is sworn in, I hope the Authority of Heads of States and Governments and the Commission president and other institutions that matter in ensuring that we have ECO would work closely and ensure its implementation, that would be
the best thing that would help all of us”, he said. In an interview he noted that, as a Sub-region we do not need to look for other currencies when traveling around West Africa, and as he is from the Gambia coming to Togo for a joint committee meeting, he had to change money into CAFA. Again, other travelers have to change money into dollars and in that process a lot of money is wasted and further pointed out that the delocalised meeting in Togo is very important, it is on theme, “The modalities for the practical implementation of Article 9 and 11 of the Supplementary Act of the Parliament, in respect of the consideration of the Community audit reports”. And his committee is working with all the Central Banks and also the African inter Trade Committees to look at the issues of the single currency for ECOWAS.
In addition, he added that, Heads of States within the Sub-region have to do more to empower the West African citizenry in the wake of the corona virus pandemic coming down, especially the protocol on Free Movement of Goods Services and People which is the bedrock to development. “If you consider the activities of our women folks from Niger, Nigeria, Benin, Togo Ghana Gambia and the other member states, our women are doing a lot they work twentyfour hours around the clock, pushing for development in the process working to improve our economies and social cohesion”. Furthermore, he emphasised the need for Heads of States to work with institutions in the member states to implement protocols to ensure that there are no hitches and part of the reason why they are having a delocalised meeting for citizens of the
Community to be well informed. On the issues of land borders being open within the Sub-region he noted that it is a welcome development and would help improve the quality of life of various people in the various respective member states. “If you look at the money being collected as a community levy you saw the projections it is really helping the major institutions of the ECOWAS Community, our funds are really helping us, donors are just chipping in to facilitate and also help us to ensure our objectives are met”. ECOWAS Parliament is doing well as it brings the Community to the door steps of the citizens and helping the people to know what the Community Parliament, Commission and other institutions are doing.
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Love Me Now or Never! By Priscilla Araba Cournooh
“If I will know what love is, then it is because of you” said a sage. What does that mean? Simply, love is only love because your fellow human was kind enough to show you what love is. “This is love; I know because of your actions, not your words per se”. Yes, there is self-love. But that’s not the focus of this piece. And even that, the degree to which you can appreciate ‘love-thy-self’ is highly a function of the love of other people in your life. Thus, you are able to love yourself by caring for your personal wellbeing because you know other people depend on you to feel loved. It must be a give-and-take affair. And that exchange of little thoughtfulacts-of-love must be expressed when you and I are both well and kicking. Looking Around Take a moment to pause and reflect on your own life. Just look around, mentally, and you may confirm this observation: Why is it becoming too apparent that the natural human nature to show love and appreciation is becoming more and more estranged? Instead, the tendency to show love and extend good will wishes to one another, usually comes up when it is too late. Why is more pronounced when they pass on, or move on? Come to think of it. The expensive wreathes laid on tombstones; the extravagant funerals. To what end? And what is the point in writing all those beautiful tributes only to be read posthumously at the funeral of our beloved family and friends? Perhaps, the least said of how expensive these funerals are, the better. The big question is: how do these benefit the departed? For those of us in the corporate space, do you realize how almost everybody find their voices to pay glowing well wishes to colleagues at their sends-off ceremonies? Why do we organize elaborate and ostentatious ceremonies with the intention to honor the memories of the departing or departed when we could have celebrated them when they were with us? What’s the Point? Clearly, there is more to what I want to express here beyond funerals and send-off parties. Whichever way you look at it the principle remains the same: That we learn to show our love and appreciation to people close to us when they can best enjoy it; not when it is too late! Why not take a moment to appreciate and express gratitude to that individual who continually gives his or her all to you and others?
Michelangelo was spot on when she stated it delightfully: “Don’t wait until it’s too late to tell someone how much you love them and how much you care about them”. Why? “Because when they’re gone, no matter how loud you should cry, they won’t hear you anymore” he further explained. Just Saying Thank You! Not too long ago, I composed and sent a message of gratitude to a senior colleague who played a significant role in helping out with a contest my Toastmasters club participated in. To me, my decision to express gratitude was birthed from my belief that one’s appreciation is the only necessary universal currency – probably to secure yet another favor in the very near future. Little did I know that the reply of my senior colleague to my few words of appreciation would rejuvenate my perspective on why it was necessary to never forget to say “Thank you!”. Her response to my note-of-thanks was not only heartfelt but spiced with a deep sense of cheerfulness; one that felt almost palpable. This single incident left me thinking, creating an impression on me. And being the quick-witted person I am, I thought is useful to share the sentiment with all as practicable as I could. My dear friend, show your love when you can; life is shorter than you can imagine. And to my colleagues and family reading this piece, please hear me out. Don’t bring me flowers when I’m dead… at least make time to come see me today or when you learn a beloved is sick in bed. In brief, I would love that you come “cry” for me whiles I am alive and not when am gone. Come and smile with me whiles am alive because your tears will be needless in my absence. That might not be too useful. And don’t try to remember how I used to be when you have the chance to come walk with me today; a moment to experience the future together. How? Ms. Pee! What the point, Priscilla? You may ask. That I wish myself dead? Certainly not! Who does that. My outburst here is to this effect. That we all put in the effort to make the utmost use of the time, while we are still around the people who mean the world to us. I repeat. Don’t wait for tomorrow, when they are in the grave, deep underground to give them a funeral fit for a queen. Sorry, that’s too late!! Love me now and not tomorrow. And if you will, do so with a touch of forgiveness because I am only
but human. Show me love me to love yourself most. Love me while alive; when love can be expressed from the heart. I may not know who might benefit from this piece, or whose scope may be broadened by it, yet I surely do know that the timely expression of love and appreciation goes a long way to create that utopia of an existence we all seek to have – with and among ourselves. Many more examples can be cited in this voyage. Ask yourselves what has been so fulfilling about…being on your own, abhorrent, unforgiving, jealous, envious, ‘I-can’t-bebothered’ syndrome? Why were you so busy to do the check-ups, to say ‘I’m just saying hello’, ‘You came to mind; how are you?’. How about the little drops of the ‘I-loveyou’, or ‘I-am-sorry’ to make full the ocean of relationship you share with that friend, relative or spouse? What engaged your attention? Why the long wait? Beyond Thoughts My point here is this: let’s
ABOUT THE AUTHOR Priscilla Araba Cournooh currently works with Stanbic Bank Ghana Limited, and privileged to manage a fantastic team within the coverage network. A friendly-hearty-person with huge passion for children and the aged, Priscilla, upholds KISS as philosophy for life: Keep It Simple
not just have it in thought, let’s go further than a thought. Remember little thoughtful-actsof-love I earlier mentioned? Go ahead. Just say it! Do it! Now!! Pick up the phone and check-up that friend you know you need to. Buy that flower; send that message; write that card; say that I love you; buy or build that dream house for your parent. Just do it! Now, or perhaps never! As Chadwick Boseman once said in his appreciation to Denzel Washington’s role in his life, “he that has watered, it is now time for him to be watered, he that has given, it is now time for him to be given”. Such is life. It goes, and comes around. Life is just fleeting we need to take advantage of the present. Take nothing too seriously. Yet, be intentionally purposeful and present to the now. Let us live to hold dear the opportunity the present presents; because tomorrow is never guaranteed. For now, just know this: I love you! Cheers…to life.
and Straight-forward. Priscilla is President of Stanbic Kumasi L&D Toastmasters Club. She is alumnus of University of Cape Coast and Paris Graduate School of Management where she studied for Bachelor of Commerce (B.Com) and MBA in Strategic and Project Management respectively.
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Increasing stimulus to protect women in tourism By Afia Agyapomaa Ofosu
It is a holiday in Ghana and tourism enthusiasts are embarking on an excursion to one of Ghana’s rich forest heritages, the Atewa Range Forest Reserve in the Eastern Region. This forest is described as having great wealth because of its distinct features. It boasts significant diversity, with at least 1,100 plant species and butterflies not seen on any site in West Africa. Ghana’s tourism sector contributes immensely to its GDP and creates thousands of job opportunities for the youth. Interestingly, natural forest conservation is from the northern to the southern part of Ghana, and it contributes to the country’s efforts to achieve the Sustainable Development Goals (SDGs) 1 and 8, which aim to reduce poverty, promote decent work and economic growth. However, Ghana’s ecotourism sector and local livelihoods were hard hit by the COVID-19 pandemic. Businesses came to a standstill and services were suspended. Protected areas and mass tourism facilities were badly affected. For example, tourism locations such as the Kakum National Park, Mole National Park, Ankasa Conversation Area
and Bobiri Butterfly Sanctuary where thousands of tourists visit annually came to a halt for more than six months, leading to joblessness and redundancies. Recounting the negative impacts of COVID-19 on ecotourism, the Deputy National Director of an environmental non-governmental organisation, A Rocha Ghana, Mr Darly Bosu, confirmed that some employees were sent home as a result of the pandemic. “During the pandemic, recovery centres in Ghana came to a halt, which meant that all the revenue that was supposed to be generated by these protected areas and ploughed back into operations dried up. Again, the people who were employed in the tourism sector, the majority of whom were women, were laid off. “The sad thing was that stimulus packages given to businesses to absorb some of the shocks of the pandemic and help them recover did not consider the tourism sector at a time when such stimulus was badly needed. The little that came the way of tourism came way after the peak of the pandemic. So we were home with no support mechanism, and that also affected environmental protection,” he said.
Mr Bosu revealed that illegal activities surged in unprotected areas due to the absence of forest guards who were asked to stay home for fear that they would spread the virus. “We saw illegal mining, also locally known as ‘galamsey’, increase within a short period in the forest reserve. Logging activity soared in the northern part of Ghana, depleting the fragile savannah ecosystems because the officers who were supposed to be at post were asked to stay home,” he said. According to research conducted by a conservation expert, Dr Anna Spenceley, on COVID-19 and protected area tourism: a spotlight on impacts and options in Africa, nearly 14,000 local employees working for tourism operators would be adversely and directly affected, as well as their dependents, if the crisis continued. The study also confirmed a surge in environmental crimes at unprotected tourist spots. Environmental crime is one of the immediate concerns of most operators (78 per cent), and a majority predict that levels will increase due to the pandemic (86 per cent). Despite efforts made by
authorities to clamp down on illegal mining, Ghana continues to battle the unlawful activities that are adversely affecting the environment, agriculture, climate change and endangering the existence of wildlife. The African Green Stimulus Programme suggests that to revitalise eco-tourism and biodiversity, stakeholders must mobile resources to support the recovery of the sector through additional conversation finance, including sustainable revenue diversification such as Conversation Trust Funds, Debt for Nature or Climate Swaps. Also, the United Nations Environment Programme’s (UNEP’s) ecotourism: principles, practices and policies for sustainability clearly outline adequate budgets to conserve popular tourist areas. The NGO has, therefore, urged policymakers and stakeholders to invest in post-COVID-19 recovery interventions and readily commit to invigorating the ecosystem by increasing stimulus packages to protect employees, especially women and communities within Ghana’s eco-tourism value chain. The writer is a journalist. E-mail: prissyof@yahoo.com
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The GSMA improves Women’s Digital Safety with Mobile Tokenisation By Ashley Olson Onyango, Head of Financial Inclusion and AgriTech The start of the COVID-19 pandemic accelerated the shift in how people get access to information, services and conduct business. As governments in most countries implemented hard lockdowns to curb the spread of the pandemic, mobile phones allowed people to stay connected and access critical services and information. This contributed to the growth of mobile internet usage, with over 3 billion people in low- and middle-income countries (LMICs) now accessing the internet on the palms of their hands. In LMICs, the majority of women own a mobile phone and over half now use mobile internet. However, compared to men, women are seven per cent less likely to own a mobile phone and 15 per cent less likely to use mobile internet. This is particularly evident among women who are the most underserved, including those with low literacy, low incomes, who live in a rural areas or have a disability. The wide-ranging benefits of mobile technology are evident in the everyday life of underserved communities, especially in LMICs. Not only do mobile phones enable access to voice and communication services, but they are also often the only way to access the internet and digital financial services such as mobile money. Access to mobile money accounts can help to unlock a variety of secure and life-enhancing services including savings, credit and insurance products and utilities. Improving women’s uptake and use of mobile services and mobile money can reduce the gender gap, offering women the chance of greater empowerment and autonomy over their personal and financial affairs and helping them become increasingly digital citizens. The need for women’s safety in mobile technology In many parts of the world, mobile network operators are working to understand and address the various barriers that women face trying to access and use mobile technology. Along with
social norms and discrimination, one of the key barriers include those relating to safety and security. While access to mobile phones can help women feel safer, they can also be a conduit for threats, highlighting the inconsistent relationship between mobile technology and women’s safety. Such inconsistencies can act as a barrier to access and usage; limiting a women’s use or ownership of a mobile phone altogether. One of the primary ways that women can feel unsafe when using mobile technology is through mobile-related harassment, including unsolicited phones calls and text messages. This is in part due to the misuse of mobile numbers obtained by agents or at points of sale, which are commonly shared with the agent or merchant when making transactions. Approach for tackling the problem The GSMA Inclusive Tech Lab is collaborating with GSMA Connected Women and MTN Ghana to explore innovative ways in which tokenisation of mobile phone numbers can be used to improve security for women, and customers more broadly. Tokenisation is a technology in which a sensitive data element is substituted by a non-sensitive equivalent, referred to as a token, that has no exploitable meaning or value. Additionally, this can assist to ensure that users feel secure when accessing mobile money services. This mobile tokenisation solution has been developed to improve safety and security for women who are using their mobile money accounts for cash-in and cash-out of money and performing a payment at a merchant location, but it showcases just one of the use cases where a user’s sensitive data, such as a phone number, can be replaced with a token - a non-sensitive, context-restricted number. The customer can request a token at any time over SMS or
USSD. Using the token number, the customer has access to a variety of mobile money services, avoiding the disclosure of their mobile phone number. On the other side, the agent does not need to do anything different. The phone number field can be filled with the token number and the transaction will proceed normally. If desired, the user can delete the token and request a new one. Shaping the perception The solution was created with a user-first mindset, aiming to keep the interaction intuitive and with changes that do not impact the processes users are accustomed to. With the target user group in mind, this is key to accommodate users’ digital skills and existing behaviours with minimal disruption.
At the same time, the technological solution was designed such that it requires minimal changes to the operator’s current platform. This is possible because the token can have the same format as the current mobile number. In that way, the system interfaces in the same way to access services required by users and agents, requiring only small changes on the server-side and making the solution more easily implemented and deployed by industry players. It is vital that providers consider women’s mobile-related safety concerns in LMICs to enable access to basic services and provide opportunities for the personal and economic growth of women.
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| NEWS
WEDNESDAY, MAY 25, 2022
3 global trade promotion organisations win top awards Trade promotion organizations from Jamaica, Malaysia and Zimbabwe received this year’s top prizes for launching innovative programmes in their countries that help small firms to benefit from trade opportunities. The 2022 World Trade Promotion Awards were announced at the World Trade Promotion Organizations Conference and Awards held in Accra. The winners were: “Best use of a partnership” Jamaica Promotions Organization ( JAMPRO), with Qatar Development Bank and Export Development and Promotion Agency (TASDEER) of Qatar as runner-up. The “Best use of information technology” award was won by Malaysia External Trade Development Corporation (MATRADE). Runners-up were Austria - Advantage Austria
and Canada - Canadian Trade Commissioner Service, Global Affairs Canada. The award for Best initiative for inclusive and sustainable trade was won by Zimtrade of Zimbabwe with Sri Lanka Export Development Board as a runnerup. “These awards recognize bold, innovative trade promotion organizations at a time of uncertainty. Trade promotion organizations everywhere have been stepping up to provide a lifeline to businesses that so desperately needs it,” Executive Director of the International Trade Centre (ITC) Ms. CokeHamilton said “These awards offer examples of scalable solutions to inspire trade promotion organizations everywhere,” she added. The competition, which
was open to all national trade promotion organizations, recognized excellence in trade support services, with proven innovations to help micro, small and medium-sized enterprises to become competitive in international markets. The jury included the former winners from Georgia, Costa Rica and Sweden; the previous conference host, France; and the current host, Ghana. Other national shortlisted countries were: Brazil, Nigeria and Saudi Arabia (partnerships); United Republic of Tanzania (information technology); Republic of Korea, the Netherlands, Zambia (sustainable and inclusive trade). The International Trade Centre is the joint agency of the World Trade Organization and the United Nations. ITC assists small
and medium-sized enterprises in developing and transition economies to become more competitive in global markets. It thereby contributes to sustainable economic development within the framework of the United Nations’ Sustainable Development Goals. Ghana Export Promotion Authority is the national trade promotion organization of the Ministry of Industry and Trade. It facilitates, develops and promotes Made in Ghana products in the competitive global economy. It plays a leading role in developing a strong market position for nontraditional exports. A previous winner of the WTPO awards, GEPA was selected by trade promotion organizations from around the world to host this year’s edition of the World Trade Promotion Organizations conference and awards.
Avanti Communications, Free in Senegal sign landmark agreement Dakar, Senegal, May 23, 2022 Avanti Communications (“Avanti”) and Free in Senegal today announced a five-year partnership agreement under which Free in Senegal will build and host a new satellite gateway in Senegal for Avanti’s HYLAS 4 stateof-the-art Ka-band satellite. The new gateway will extend the coverage of Avanti’s latest satellite, HYLAS 4, to Senegal and the neighbouring West African countries of Guinea, Sierra Leone, Guinea Bissau, Gambia and Liberia, as well as completing Avanti’s coverage of Ivory Coast. The expanded coverage will significantly increase access to high-speed satellite internet for the
countries’ schools, hospitals, and communities. The new gateway will also provide satellite backhaul services to Avanti’s carrier customers, extending their reach to rural areas and other semiurban locations where terrestrial networks are currently limited or unreliable. Free Senegal will build and operate the new gateway from its Tier III data centre facility in Diamniadio outside the capital Dakar, adding Avanti as a strategic customer to its growing enterprise business in Senegal and supporting the Government’s Digital Senegal 2025 strategy. Amongst the many positives
of increased connectivity, the partnership is due to make a big impact on education, enabling e-learning services for schools across the region. Pending approval from the Senegalese authorities, the gateway is planned to go live in December 2022. Kyle Whitehill, CEO of Avanti Communications, commented: “This strategic partnership with Free in Senegal demonstrates our commitment to working with local partners in Africa such as Free in order to increase the coverage of our satellite fleet - benefitting countries and territories that are often overlooked when it comes to highspeed broadband. We are looking
forward to working with the Free team to make this vision a reality.” Mamadou Mbengue, CEO of Free in Senegal, added: “We are delighted that Avanti has chosen Free to be their gateway partner in Senegal, recognising the capabilities offered by the Free team and our data centre facility in Diamniadio. This agreement between Avanti and Free to build the gateway and provide Ka-band satellite coverage across Senegal and the neighboring countries is a major milestone in our digital transformation agenda.”
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| FEATURE
WEDNESDAY, MAY 25, 2022
Will the Ukraine war revive the WTO? By Anne O. Krueger
Russia’s invasion of Ukraine has heightened everyone’s appreciation of global issues and interconnectivity. In addition to geopolitical and defense concerns, there is a renewed focus on the state of international trade. After continuing Donald Trump’s destructive trade policies for more than a year, US President Joe Biden’s administration finally appears to have recognized the importance of strong trade relations. The United States is holding consultations with the European Union to expand cooperation on trade and technology, and with others on issues such as agriculture. A big opportunity to reverse Trump’s legacy comes in June, when trade ministers from 164 member states and 25 observer countries will meet in Geneva for the 12th Ministerial Conference of the World Trade Organization. The meeting cannot come soon enough. The world economy desperately needs the WTO to be restored so that it can play the valuable role that it did before the Trump presidency. It is thanks to the WTO and its predecessor, the General Agreement on Tariffs and Trade, that the open multilateral trading system was so successful for 70 years after World War II. To its great credit, the US led the world in creating the institution and supporting its development. Member states agreed to subject their trade policies to the rule of law, which in turn allowed traders to engage in international exchange with confidence. The essential WTO principles are threefold. Countries should
not discriminate among other WTO members in administering their trade policies. Governments should treat foreign nationals and entities within their jurisdiction the same as domestic firms. And all member states should maintain open trade policies, except in special circumstances. The WTO has adopted important additional protocols on such matters as trade in information technology products, agricultural trade, standardization of customs forms, and so forth. Equally important, it long served as the forum for settling trade disputes between countries. If an exporter claimed that its treatment in an importing country violated WTO rules, the WTO had procedures to address the charge. In fact, the WTO’s dispute settlement mechanism (DSM) was widely regarded as one of its most successful functions. In the event of a complaint, the WTO would notify the complainant’s trading partner and set a timeframe for direct negotiations. If there was no satisfactory resolution, a panel was appointed to hear the case and present its findings. If the defending country was found to have violated WTO rules, it could either alter its behavior or appeal to the Appellate Body, whose seven members were nominated by the WTO membership by unanimous consent for four-year terms. The Appellate Body’s ruling was then binding on the parties. But things changed when the Trump administration assumed office early in 2017. In addition to imposing tariffs on steel, aluminum, and other goods (many on dubious national-
security grounds), demanding a renegotiation of the North American Free Trade Agreement and other trade agreements, and instigating a trade war with China, the US refused to approve any new appointments to the Appellate Body. As a result, the DSM – the “jewel in the crown” of the WTO – now has no members and is defunct. In its absence, a group of 25 WTO member states and the WTO leadership has agreed to a Multi-Party Interim Appeal Arbitration Arrangement (MPIA), which will follow a process very much like the DSM. If the Biden administration is serious about correcting its predecessor’s mistakes, it could use the June ministerial meeting to join the MPIA agreement and start negotiating a new statement of fundamental principles. Once agreed, this could allow for a full restoration of a binding DSM and more clear-cut criteria for determining nationalsecurity carve-outs, regulating trade in health-care products and e-commerce, and tackling environmental issues. Although essential WTO principles like non-discrimination are highly desirable, Russia’s invasion of Ukraine represents an obvious exception. Such aggression warrants sanctions both to handicap Russian military activities and to ensure supplies for the coalition supporting Ukraine. In April, US Secretary of the Treasury Janet Yellen declared that the US and its allies must not “allow countries to use their market position in key raw materials, technologies,
or products to have the power to disrupt our economy or exercise unwanted geopolitical leverage.” Arguing that US trading arrangements should favor “friend-shoring,” she said the US would now consider “building a network of plurilateral trade arrangements to incorporate elements of the modern economy.” But since it is equally important to preserve the open trading system, this new principle of trade policy will need to be carefully defined. There is a risk that those with purely protectionist motives will benefit under the friend-shoring rubric, and there are questions about the criteria for “friends.” What if a “friendly” country replaces its government with one that is hostile to the US? What if a producer in a friendly country uses imported inputs from a non-friendly country? The friend-shoring doctrine needs to be clarified, lest it end up discouraging supply chains and other trading relationships that would greatly benefit trading partners. If friend-shoring can be made consistent with an open multilateral trading system and WTO rules (perhaps with a clear, minimal carve-out for trade with non-friends), it will resolve a thorny public policy issue. While the details of the new principle are being addressed, however, efforts to advance the MPIA and an eventual restoration of the DSM should be pursued in earnest.
| OPINION/ANALYSIS
WEDNESDAY, MAY 25, 2022
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How the EU must change By Joschka Fischer
Though we still don’t know when – and, more importantly, how – Vladimir Putin’s war of aggression in Ukraine will end, it is already clear that the conflict will dramatically transform the European Union. The EU was Western Europe’s answer to the explosive violence of the two world wars, which were themselves the products of industrialization and nationalism from the nineteenth century onward. These historical processes led to the complete destruction of the traditional European order. After World War II, the European continent came to be dominated by two non-
institutions, and a common legal system – eventually implying a complete integration of the states involved. The aim was not only to overcome the socioeconomic and political causes of destructive nationalism, but also to ensure that Europe’s historical troublemaker and strongest economy, Germany, was fully and permanently brought into the fold. In the decades that followed, NATO and the EU (initially the European Coal and Steel Community and then the European Economic Community) became the respective military and economic pillars of European
has been pursuing a different kind of policy. It has sought to re-establish its status as a global power by laying claim to more and more “Russian earth,” which implies a reversal of the postSoviet order. Looking to the past rather than the future, Putin wants to restore the old Russian empire. As Ukrainians increasingly expressed their desire to integrate with the West, Putin took steps to deny their freedom and Ukraine’s sovereignty. In 2014, he annexed Crimea and ignited a low-burn war in Ukraine’s Donbas region. And now he has launched an all-out war of aggression, wrecking any
Ukraine, Georgia, and Moldova are already showing. Until now, the sole geopolitical instrument that the EU had at its disposal was the promise of full membership (and thus economic growth and prosperity). But that promise has turned out to be an illusion for Turkey and the Western Balkans. Under its current institutional and legal framework, the EU can pursue its geopolitical interests only to a very limited extent, if at all. The EU of the future therefore will need a more flexible structure, with a quasi-confederative arrangement surrounding a federated core. Rather than requiring full membership or
European powers: the United States and the Soviet Union. Because these two powers’ material and ideological interests were impossible to reconcile, a decades-long nuclear-arms race and Cold War ensued. Immediately after WWII, Western Europe’s economy was in tatters and it was militarily defenseless against a Soviet invasion. Without the US Marshall Plan and America’s guarantee of military protection, Western Europe would hardly have been able to survive. NATO’s founding in 1949 ensured that the western part of the continent would remain safe from both Soviet encroachments and a re-emergent, albeit partitioned, Germany. This arrangement then gave rise to the idea that a stable Western European order could be achieved through economic integration within a single market, collective
security and prosperity, and thus of the Western European order. But with the end of the Cold War came new questions about what the European order would look like. The answer was that both Western European pillars – NATO and the EU – would grow to include the Central and Eastern European countries that qualified for membership. For their part, many of the former Soviet republics and Warsaw Pact members wanted a binding guarantee that the European order would not be revised by Russia. NATO and EU membership thus brought the promise of collective security and a common market. The hope was to eliminate the last remnants of the old East-West confrontation, and to ensure a permanent peace through economic exchange and interdependence. Under Putin, however, Russia
chance for peaceful coexistence between Russia and the EU, at least as long as he remains in power. Geographic partition, enforced by nuclear blackmail, will once again prevail over economic exchange and cooperation. The EU will now have to focus much more on security and geopolitical issues than it did in the past. Moreover, now that Sweden and Finland will join NATO, Austria, Ireland, Malta, and Cyprus will be the only EU members that do not also belong to the alliance. Thus, the relationship between the two pillars of the European order will also change. EU members will have to increase their defense spending substantially as well as urgently shore up their contributions to NATO. The EU will also confront increasingly high-stakes geopolitical challenges, as applications for membership by
nothing at all, the EU could instead offer narrower access to the common market, common security, the EU legal community, the common currency, and so forth. The EU cannot grow endlessly. But it does need to accept that its geopolitical interests extend much further than the instrument of full membership does. As long as authoritarian regimes pose a material threat, the EU – representing the economic and societal alternative – will become an increasingly significant force not just on the European continent but in the larger gray area to the east, where there is no clear-cut border with Asia. Whatever happens in Ukraine, the situation demands a new structural flexibility and not rigid adherence to old, overstrained arrangements or promises that cannot be fulfilled.
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| AGRIBUSINESS
WEDNESDAY, MAY 25, 2022
President Akinwumi Adesina outlines the African Development Bank’s plan to feed the continent African Development Bank Group President Dr. Akinwumi Adesina on Monday outlined the Bank’s plans to address the looming food crisis threatening Africa as a result of the war between Ukraine and Russia. “I’m optimistic. Africa will not experience a food crisis. We have the means to overcome this challenge!” Adesina said. He was briefing journalists from 41 countries in Africa and around the world at a media breakfast held to mark the start of the African Development Bank Group’s Annual Meetings, being held in Accra from 23 to 27 May. “Africa needs only to produce its own food. It should not have to be begging for food. There is no dignity in begging for food,” he added. The President explained all the efforts made and results achieved in terms of resilient agriculture in East Africa, thanks to the Bank, especially in Sudan and Ethiopia, which have been able to avoid importing wheat thanks to record production of 650,000 tonnes. He highlighted the importance of the Technologies for African
Agricultural Transformation (TAAT) program for African producers’ resilience. Dr. Adesina pointed out that the Bank Group’s Board of Directors had on Friday approved the $1.5 billion African Emergency Food Production Facility, developed by the institution to address the food crisis looming over Africa due to the Russia-Ukraine conflict. The facility will provide agricultural seeds to 20 million African producers. The varieties include wheat, maize, rice and soybeans. The objective is to produce an additional 38 million tonnes of food and to generate $12 billion in value over the next two years. “In agriculture, we know what we’re doing. Africa must be a solution for the world in respect of food, and so it shall be. Sixty-five per cent of African land is arable, and the use that Africa makes of this land will determine the future of the entire planet,” Adesina said. Moving towards stable energy systems The other challenge facing the continent is climate change. “Climate change is a threat to
the continent. Its effects are devastating. When I look at what happened in South Africa – where floods led to nearly 500 deaths and a lot of damage – or in Mozambique, Madagascar, or the Horn of Africa, land has been swallowed up,” Adesina said. Africa is suffering annual losses from the effects of climate change in the range of $7 billion to $15 billion and this figure will stand at $50 billion by 2040. It will, therefore, take $1.6 trillion between 2020 and 2030 to combat the effects of climate change in Africa. However, the continent does not receive enough funding to cover its needs. African receives only 3% of global climate funding. “We will no longer finance coal,” the President said. This is the Bank’s adopted position, forming part of our policies in the fight against climate change. Also, renewable energy alone cannot meet Africa’s needs. We also need stable energy systems. Natural gas must remain a stable energy system in Africa,” he insisted. President Adesina said it was time for the continent to prosper. “Our people deserve
this. And so, they should have stable energy systems. We are committed to investing $25 billion for adaptation in Africa. But our efforts will not suffice on their own. At COP15, in Copenhagen, developed countries promised $100 billion a year. They must act now; it is time,” he said. In closing, the African Development Bank President expressed his thanks to all the members of the press gathered at the Bank’s Annual Meetings. “Thank you for carrying our institution’s actions to the eyes of the world. And with your pens, the Bank’s activities will be brought to all those who are not here, especially those voices for whom we work. We shall all have challenges, but we will never give up,” said Dr Adesina. “I am proud of what we have accomplished together. We are working hard. And we will continue to make Africa proud.” The theme of the African Development Bank’s 2022 Annual Meetings is “Achieving climate resilience and a just energy transition for Africa”.
WEDNESDAY, MAY 25, 2022
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| NEWS
WEDNESDAY, MAY 25, 2022
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| NEWS
WEDNESDAY, MAY 25, 2022
Leading African institution - The Africa Centre – gets a £5.6 million facelift
By Dr Enyonam Canice Kudonoo
After years of planning, and a little over 12 months of building and refurbishment work, The Africa Centre – celebrating contemporary African culture and heritage – is finally ready to welcome its patrons and supporters to its new home in Southwark, London on 9th June. It will continue to act as a bold and transformative bridge between the continent, Africans, and friends of Africa all over the world from its base in one of the world’s most international and exciting cities, London. Southwark was chosen for its multicultural character and its proximity to several other iconic cultural institutions such as Tate Modern, the Southbank Centre, The Old and Young Vic theatres, Shakespeare’s Globe and the
future site of the V&A East. Spread over four floors, phase one of its redevelopment will see an African restaurant and lounge bar on the ground and first floors and spaces for exhibitions, debates and events on the second. Phase two, (to follow), plans a whole floor devoted to education, connecting the UK with Africa via interactive education initiatives teaching African history through the Centre’s digitised archives as well as offering language classes. Meanwhile, the fourth floor will be a business suite offering black businesses and individuals the opportunity to mingle, network, and grow. Speaking about the renovation, Oba Nsugbe, Board Chair, The Africa Centre said, “Over the decades, since its launch in 1964, The Africa Centre played a key role in being a home away from home for the African diaspora. It has been a safe place and key platform for African activists, intellectuals and artists to discuss and drive the African narrative. “With time, our mission
and purpose have grown and transformed to not only represent the first generation of Africans, but also the second and third generation of Africans and AfroCaribbeans. In addition, for a more wholesome engagement with the community, the updated Centre goes beyond a focus on Arts and culture to have areas dedicated to Education and Learning and Entrepreneurship,” Nsugbe added. Everything from furniture, decor and paintings to food and drink in the Centre’s restaurant will celebrate African culture and lifestyle. Designs by renowned artists and designers including Barthélémy Toguo from Cameroon and Mash T design studio of South Africa grace the halls and rooms of the Centre. Key attraction - Malangatana mural One of the key attractions of the Centre will be the Malangatana mural, which will be unveiled on the opening day. “This has special significance as it has ties to our original home in Covent Garden. The mural was originally painted by the iconic
Mozambican artist, Malangatana Ngwenya, in 1987. Years later when the Africa Centre relocated, the mural was carefully removed and preserved. It has now been professionally restored and will take pride of place once again in our new home. Part of the unveiling celebrations will involve Malangatana’s family, the Mozambican community in London and other notable figures from the African art space,”said Belvin Tawuya, Chief Marketing Manager, The Africa Centre. Other notable highlights include, the launch of Tanzanian visual artist Sungi Mlengeya’s solo exhibition; a panel discussion on the impact of Afrobeats in shaping narratives about Africa; and a festival of communityfocused activities featuring performances, market stalls, food and entertainment. Like Malangatana who believed that art should be accessible to everyone and not merely placed in galleries, the Centre too aims to be a place for people from a cross-section of the community to meet, learn and celebrate African art and culture.
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| MARKET REVIEW
WEDNESDAY, MAY 25, 2022
WEEKLY MARKET REVIEW FOR WEEK ENDING - MAY 20, 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
18.86%
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 strengthened for the week on the back of gains in share prices of 4 counters. The GSE Composite Index (GSE CI) gained 2.37 points (+0.09%) to close at 2,564.20 points, reflecting yearto-date (YTD) loss of 8.07%. The GSE Financial Stocks Index (GSE FI) also gained 4.11 points (+0.19%) to close at 2,210.43 points, reflecting year-to-date (YTD) gain of 2.72%. Market capitalization inched up by 0.05% to close the week at GH¢62,540.50 million, from GH¢62,508.52 million at the close of the previous week. This reflects YTD decrease of 3.03%. Trading activity registered a total of 1,667,473 shares valued at GH¢3,918,729.40 changing hands, compared with 631,248,142 shares, valued at GH¢580,516,363.55 in the preceding week. MTN dominated volume of trades for the week, accounting for 57.93% of trades whiles New Gold dominated value of trades, accounting for 60.42% of shares traded respectively. The market ended the week with 4 leaders and 1 laggards as indicated on the table below.
THE CURRENCY MARKET The Cedi marginally depreciated against the USD for the week. It traded at GH¢7.1323/$, compared with GH¢7.1163/$ at week open, reflecting w/w and YTD depreciations of 0.22% and 15.79% respectively. This compares with YTD appreciation of 0.50% a year ago. The Cedi depreciated against the GBP for the first time after gains in four consecutive weeks. It traded at GH¢8.8979/£, compared with GH¢8.7022/£ at week open, reflecting w/w and YTD depreciation of 2.20% and 8.66% respectively. This compares with YTD depreciation of 3.03% a year ago. The Cedi also lost against the Euro for the week. It traded at GH¢7.5276/€, compared with GH¢7.4001/€ at week open, reflecting w/w and YTD depreciation of 1.69% and 9.29% respectively. This compares with YTD appreciation of 1.12% a year ago. The Cedi further depreciated against the Canadian Dollar for the week. It opened at GH¢5.4975/C$ but closed at GH¢5.5558/C$, reflecting w/w and YTD depreciation of 1.05% and 14.65% respectively. This compares with YTD depreciation of 4.76% a year ago.
source: Bank of Ghana
WEDNESDAY, MAY 25, 2022
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| MARKET REVIEW
BUSINESS TERM OF THE WEEK
COMMODITY MARKET Crude oil prices settled slightly higher for the week as a planned European Union ban on Russian oil and easing of COVID-19 lockdowns in China countered concerns that slowing economic growth will hurt demand. Brent futures traded at US$112.55 a barrel on Friday, compared to US$111.55 at week open. This reflects w/w loss and YTD gains of 0.90% and 44.70% respectively. Gold prices rose to a one-week high as the U.S. dollar receded from two-decade highs, reviving demand for safe-haven bullion. Gold settled at US$1,842.10, from US$1,808.20 last week, reflecting w/w and YTD gains of 1.87% and 0.74% respectively. Prices of Cocoa declined for the week. The commodity traded at US$2,429.00 per tonne on Friday, from US$2,483.00 last week, reflecting w/w and YTD losses of 2.17% and 3.61% respectively.
GOVERNMENT SECURITIES MARKET Government raised a sum of GH¢1,292.10 million for the week across the 91-Day, 182-Day and 3-Year Fixed Rate Bond. This compared with GH¢1,248.67 million raised in the previous week. The 91-Day Bill settled at 19.08% p.a from 18.23% p.a. last week whilst the 182-Day Bill settled at 20.76% p.a from 19.26% p.a. last week. The 3-Year FXR Bond settled at 25.00% p.a from 20.85% p.a at last issue. The table and graph below highlight primary market yields at close of the week.
Capital Flight: Capital flight is a large-scale exodus of financial assets and capital from a nation due to events such as political or economic instability, currency devaluation or the imposition of capital controls. Source: https://www.investopedia.com/terms/c/ capitalflight.asp
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RESEARCH TEAM INTERNTIONAL COMMODITIES PRICES
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NO. B24/317 | NEWS FOR BUSINESS LEADERS
WEDNESDAY, MAY 25, 2022
We must deepen inclusive governance -Speaker within the legislative framework. Speaker Bagbin further stressed the importance of inclusive, accountable and participatory governance in parliamentary work and called for more opportunities to be created for the aged, disabled and other marginalized groups in society to also contribute their best to the growth of society. For her part, the Speaker of the Zambian National Assembly, Nelly Mutti expressed gratitude to Speaker Bagbin and the Ghanaian parliament for the reception accorded her and her delegation. She said Zambia and Ghana have a long history of cordial relations which have manifested in the various sectors and pledged her commitment to improve further the relations for greater mutual benefits. She commended Speaker Bagbin for bringing to bear his many years’ experience which she said has kept both sides of the house together despite the political and ideological differences existing between them.
The Speaker of Parliament, Alban S. K Bagbin has charged leaders across Africa to create special parliamentary constituencies for the youth to fully participate in governance. He said the move would help young people get involved in the governance architecture of their countries. “There is the need for a change in paradigm from creation of geographical constituencies to a more inclusive social structure which mirrors the society parliament represents,” he said. The Speaker made the remarks when the Speaker of the Zambian National Assembly, Ms. Nelly Mutti led a delegation to call on him in parliament today. The Zambian Speaker was is in as part of a week-long Benchmarking visit of the Standing Orders Committee of the Zambian Parliament. The bench-marking visit forms part of efforts to deepen relations between Ghana and the Zambian National Assembly as well as exchange notes on best practices
Guinness Ghana commissions mechanised solarpowered water facility for Denugu Community Ghana’s leading total beverage company, Guinness Ghana Breweries Plc, has commissioned a solar powered water facility at Denugu in the Garu District of the Upper East region. The facility, which has the capacity to provide 25,000 litres of water per day, is part of the beverage company’s commitment to continuously invest in communities where it sources local raw materials. At a ceremony to commission the facility, Helene Weesie, Managing Director of Guinness Ghana, noted that Guinness Ghana over the years has invested in these facilities because it believes sustainable access to clean drinking water and sanitation is the bedrock for building strong and thriving communities across its operational areas. “Since 2020, we made a commitment to refocus our investments in communities where we source local raw materials for production especially, where we source sorghum. To this end, our Water for Life programme is directly connected to our Local Raw Materials initiative.”, she added. She expressed confidence in the partnership between Guinness Ghana, WaterAid Ghana and the leadership of the Garu community, noting that the two (2) water delivery systems are to equip these
communities with the resources to build a better future. Sylvia Owusu-Ankomah, Corporate Relations Director for Guinness Ghana also noted that having operated in Ghana since the 1960, Guinness Ghana remains committed to building thriving communities in areas where it sources, makes, and sells its products, adding that: “since 2007 when the program began, over 70 communities have benefitted from the Water for Life intervention”. “Currently our 2030 Spirit of Progress targets launched in November 2020 continues to guide us into the next decade and ensuring that we become a strategic partner for development and progress. The Water for Life initiative will give communities a means to sustain themselves over the long term while reducing pressure on key water resources by providing alternatives such as ground water”, she added. Kate Kumi, Acting Country Director for WaterAid Ghana, noted despite the significant role water plays in achieving quality health care delivery, research has shown that 54% of health care facilities in subSaharan Africa did not have clean and safe water on site. “Achieving the United Nations Sustainable Development Goals (UNSDGs), particularly goal 3
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will therefore require strategic investment in the area of WASH services and Metropolitan, Municipal, and District Assemblies must prioritize WASH issues and make the necessary budget allocation towards implementation”, she said. Mr. Osman Musah, District Chief Executive for Garu, who was a special guest at the commissioning event commended Guinness Ghana and partners for supporting the district over the years to improve access to Water, Health, and Sanitation (WASH) services. Society 2030: Spirit of Progress Society 2030: Spirit of Progress is Diageo’s 10-year action plan to help create a more inclusive and sustainable world. Building on the
legacy of our founders to create a positive impact in our company, with our communities and for society. It is how we will continue to celebrate life, every day, everywhere. To lead our business through the next decade, we have set ourselves 25 goals which are aligned to the United Nation’s Sustainable Development Goals. We are passionate about the role our brands play in celebrating life the world over. And as a global company, we know we have a responsibility to build partnerships and lead. We will achieve our ambition by ensuring our people, partners and communities can thrive through Society 2030: Spirit of Progress.
Kate Kumi (Ag. Country Director, WaterAid, Osman Musah, DCE for Garu District and Helene Weesie, MD for Guinness Ghana commission the new water project.
EDITOR: BENSON AFFUL editor@business24.com.gh | +233 545 516 133.