Business24 Newspaper 6 May 2022

ACEP urges shift towards mineral sources in energy transition 05 NEWS FOR BUSINESS LEADERS

BUSINESS24.COM.G H | FRIDAY, MAY 6 , 202 2

Fidelity Bank, 6 estate developers to expand mortgage

EJF lauds gov’t on fishing gear directive but warns sector needs wider 02 reforms

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Vodafone Cash transfer is still free, customers pay 03 only 1.5% E-levy

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THEBUSINESS24ONLINE.COM

News/Editorial

Our bilateral treaties must reflect current demands of trade In this fast-evolving international trade environment, it is essential for Ghana to work collaboratively with its trade partners to develop bilateral cooperation tools that reflect the dynamics and needs of individual countries.

As a complaint and cooperative nation, the country has ratified a significant number of trade agreements and executed over a dozen of them with countries in Africa, Europe, Asia and the Americas.

In the wake of the Africa Continental Free Trade Area (AfCFTA), for instance, the state investments poacher, Ghana Investment Promotion Centre (GIPC) is currently seeking to harmonise the regulatory regime of trade and investment, and taxation across African continent in a bid to develop one master document about all these areas.

It is therefore a good that the GIPC has commenced processes to renegotiate all existing treaties that are outdated and do not reflect the trade needs of various partner countries.

The topic was hugely discussed at this year’s Economic Counselors’ Dialogue is an annual event organized by the GIPC to bring economic, commercial, and trade counselors from diplomatic missions serving in Ghana to dialogue on issues affecting economic relations and the investment climate in Ghana.

Under BITs, the partie agree to international law standards for expropriation and compensation, free transfer of funds related to investments, fair and equitable treatment, and most-favourednation treatment.

Bilateral Investment Treaties (BITs) are one such means, and they are an essential tool for facilitating economic growth and addressing many of the level-playing-field issues that foreign investors face when doing business.

We agree that our bilateral trade agreements must be reflective of the needs of the local economy and its allied stakeholders, especially the business community.

EJF lauds gov’t on fishing gear directive but warns sector needs wider reforms

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The Ministry of Fisheries and Aquaculture Development have issued a directive to industrial trawlers to ensure that they use only appropriate fishing gear, in a move applauded by the Environmental Justice Foundation (EJF).

The directive, if incorporated into the Fisheries Act and Regulations, will mean that trawlers using nets that catch disproportionate amounts of juvenile and ‘small pelagic’ fish will be sanctioned.

It is vital to enforce these requirements rigorously and apply punitive sanctions if they are broken, says EJF, since the small pelagic fishery is the mainstay of small-scale fishers, with around 2.7 million Ghanaians depending on it for their income and food security.

The Ministry’s announcement was informed by a 2019 report on fishing gear, which revealed that a commonly-used trawler net, with a vertical opening of nearly 40 m, catches large quantities of pelagic and semi-pelagic fish.

Targeting these species is in direct contravention of the licence conditions set for industrial trawlers, and has played a part in the rapid decline in these fish populations, threatening food security and livelihoods of coastal communities.

According to the report, “every haul brought in a wide range of

fish species, but the majority caught during the audit were pelagic and semi-pelagic fish”.

While there is an allowance for bycatch (thought to be 10-15%) the trawlers are not licensed to target these fish.

This raises urgent questions about why such large amounts of non-target species are being landed at port, and what checks, if any, are being conducted to ensure the allowed proportion of bycatch is being adhered to. It also casts doubt on how effective the current observer system is, given that this occurs in the context of widespread suspected illegal fishing.

Alongside this, the report also noted a lack of knowledge in key institutions, citing the fact that few staff at the Fisheries Commission were able to tell the difference between various types of nets.

It also revealed that many key vessel documents were not in English, creating a critical barrier to the enforcement of the 2002 Fisheries Act, since officers of the Fisheries Commission and the Fisheries Enforcement Unit will be unable to determine whether information is “true, complete and correct”. It also raises concerns around the true ‘beneficial’ ownership of vessels in the fleet – those who take home the profits – especially in light of the fact that EJF investigations have found that at least 90% of vessels in the fleet

are owned by Chinese companies.

Steve Trent, CEO and founder of the Environmental Justice Foundation, said: “We support these reforms by the Ministry, and encourage their rigorous implementation, along with deterrent sanctions for those breaking the law, with crimes and the punishments made public.

Further reforms are also needed to tackle the deeply entrenched and systemic issues among the Ghanaian trawl fleet that continue to undermine efforts to improve the sustainability of Ghana’s waters.

First, Ghana must urgently increase transparency in the sector – publishing details of the beneficial ownership of trawlers, fishing licence details and any history of illegality.

This will mean that all stakeholders can see who is playing by the rules and support them, while weeding out those who continue to commit crimes and abuse the system.

Capacity building across the Fisheries Commission, the Ports and Harbour Authority and the Monitoring, Control and Surveillance Division is also needed to ensure effective inspections of fishing gear and catch, and deterrent sanctions against those who break the rules.”

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FRIDAY, MAY 6, 2022

Fidelity Bank, 6 estate developers to expand mortgage Fidelity Bank has signed a Memorandum of Understanding (MoU) with six real estate developers to enable customers access housing mortgage.

The agreement will see Fidelity and the real estate developers — Integral Associates, GHS Housing, Adom City Estates, Priority Homes, Blue Rose Developers and New Oak— collaborate in the mortgage financing sector to make acquiring homes easier.

The bank in a statement said the agreement followed an earlier one signed between the bank and NTHC Properties, Appolonia Development Company and Trasacco Estate Developers in 2021.

The Divisional Director, Retail Banking, Nana Esi Idun-Arkhurst

who signed on behalf of the bank, said homeownership was an integral part of the Ghanaian dream, however, the cost of financing a housing project could be prohibitive.

She said “unfortunately, only a few financial institutions in Ghana offer mortgage financing and as one of the few institutions providing mortgages, this partnership will expand our mortgage financing offering so that we can help more people achieve their dream of owning a home and reducing the housing

deficit in the country”.

“The signing of this MOU with our eight real estate p a r t n e r s is also a firm demonstration of our belief that serving our customers successfully requires collaboration with key stakeholders. Together, we will make mortgage financing more accessible for our customers and potential customers”.

Speaking on behalf of all real estate developers present at the signing, the Chief Executive Officer (CEO) of Blue Rose Real Estate developers, Ebo Acquah, said they were happy to partner with Fidelity Bank to expand

the bank’s mortgage financing proposition.

“We are thrilled to take this step with Fidelity Bank in ensuring that we provide solid financial support for people who wish to own their homes.

“The obvious fact today is that the price of already constructed houses in Ghana is way above what the average Ghanaian can afford.

“But with this partnership, we are confident that mortgages will be easily accessible by all and we will contribute to make a significant dent in the challenges facing the housing sector in Ghana,” he said.

Vodafone Cash transfer is still free, customers pay only 1.5% E-levy The 1.5 % electronic transfer levy was implemented on 1st May 2022. In practical terms, this will increase mobile money transfer fees to 2.25% for customers who transact amounts greater than GHS100.00 per day. Vodafone Cash customers, however, will only be required to pay the 1.5 % e-levy as the Telco continues to waive ALL transfer fees to any network.

Vodafone Cash customers can send any amount to other mobile money users across the various networks and only pay the mandatory 1.5% e-levy, instead of the expected 2.25% transaction fees charged by other Telcos.

Since the implementation of the e-levy on 1st May 2022, Ghanaians have shared numerous positive comments and commendations on social media concerning Vodafone Cash’s continued free transactions initiative.

In July 2020, Vodafone Cash took the unprecedented step of waiving all charges on any Vodafone Cash transfers to reduce the financial burden on customers brought on by the COVID-19 pandemic.

Commenting, Patricia Obo-Nai, Chief Executive Officer (CEO) of Vodafone Ghana, said: ‘At Vodafone, we understand that our customers are faced with financial difficulties due to the economic hardship resulting from the COVID-19 pandemic. This free

service will help our customers navigate these challenges. We want our customers to confidently send money, be it for accessing health services, educational purposes, or urgent remittances to family and loved ones in remote parts of the country without worrying about transfer charges. We are excited that this service has brought great financial relief to our customers and small businesses across the country.’

Vodafone Cash has earned a name for itself by providing leadership through innovative financial products. In 2021, the free transfer service was awarded the Chartered Institute of Marketing (CIMG) Product of the Year, and won the Most Innovative Product of the Year at the Ghana Information Technology and Telecommunications Awards (GITTA).

Prior to this initiative, Vodafone Ghana was the first network operator to allow customers to continue to enjoy free charges on interoperability transactions (transactions to other networks) below GHS100.00 even after the Bank of Ghana lifted a directive for operators to waive the charges.

To send money to other networks, Vodafone Cash subscribers should dial *110#, select option one ‘Send Money’, select option two ‘Other Networks’ and follow the steps.

Customers who have not

subscribed to the service yet can simply dial *558# to register.

Non-Vodafone customers can purchase a SIM card from any

Vodafone Agent or Retail Shop, register with a Ghana Card and then activate their cash wallet.

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FRIDAY, MAY 6, 2022

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| ENERGY

FRIDAY, MAY 6, 2022

ACEP urges shift towards mineral sources in energy transition

By Eugene Davis The Executive Director of Africa Centre for Energy Policy (ACEP), Ben Boakye has asked government and other African countries to identify mineral resources where they have competitive advantage to aid their energy transition agenda.

Speaking at a virtual event on Thursday on the theme ‘Africa amidst the Energy Transition: opportunities in the mining supply chain under AfCFTA’, he said “Ghana has bauxite, lithium, silica deposits which are all important for the transition.

“The sun is also a major resource we can take advantage of, beyond that, the capacity to produce bio-fuel is huge. Ethanol could help transition Ghana from the use of wood fuel for cooking, which causes many diseases and put pressure on health infrastructure,” he added.

According to him the country can undertake exploration with the other untapped deposits including bauxite, and maintains

that adapting cleaner fuel was the way to go.

“We need to research more and look within local content, the minerals we can use to be able to produce ethanol at cheaper cost to compete with wood fuel that we are felling from the bushes and causing desertification, so we need to get to those spaces and see the opportunities we do have.

It is same across the region.”

He also indicated that the country needs to generate electricity at cheaper rate to encourage industrial establishment to refine the minerals; “if we don’t have cheaper power these factories will not come.”

Mr. Boakye also added that renewable technology is the future of energy and government cannot “fold its arms and not participate by choosing sustainable energy sources over fossil fuels, Africa can create new jobs, experience greater economic growth and harvest social and health

benefits while helping to mitigate devastating impacts of climate change.

Furthermore, he suggested that local businesses need cash injections and foreign partnership and adds that people must be advised to work and pool resources together.

For him, a strategy to encourage investments to exist on the continent -services, local businesses must be tied to learn and gain capacity, “the future is the local business and not foreign business.” he said.

Dode Seidu, Trade Advisor at AfCFTA, recommended that countries should develop origin rules to favour resources.

He explained that the origin rules basically provide that products produced with value added on the continent could benefit from reduced tariffs under the AfCFTA. “There are two criteria namely wholly obtained criteria -which entail that any mineral product,

naturally occurring product, raw material which is wholly grown, extracted from any African country becomes tradeable on the continent and that includes agriculture, mineral products, scrap, electricity, aquatic, gas and electricity.

The other criteria, is the substantial transformation which means that the product being traded has undergone manufacturing or processing which significantly changes the characteristics of the product. “ He stated that when it comes to energy transition, African countries need to take a strategic view in a bid to develop and build “ourselves in terms on capacity to accomplish the targets of a gradual transition.”

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FRIDAY, MAY 6, 2022

| INSURANCE

FRIDAY, MAY 6, 2022

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Allianz reinforces its commitment to net-zero strategy Allianz Group is accelerating the deployment of its climate strategy and has announced new ambitious commitments in both its core business and operations.

The company will limit the greenhouse gas emissions (GHG) deriving from Allianz’s sites and activities in over 70 markets to net-zero by 2030, instead of 2050 as originally planned.

For its proprietary Investment and Property & Casualty (P&C) businesses, as of January 1, 2023, Allianz will no longer invest in or underwrite new single-site or stand-alone oil and selected gas risks, oil and gas activities related to the Arctic and the Antarctic or extra-heavy oil and ultra-deep-sea risks. By the start of 2025, Allianz will require a robust ‘net-zero by 2050’ commitment from the largest hydrocarbon producers as a pre-condition for companylevel insurance coverage and investments.

“In view of the current geopolitical situation, the reliable energy supply for households and companies must be reprioritized in the short term. Policymakers must now work together with the business community to define conditions that enable planning, and in addition enable the acceleration of renewables globally,” says Günther Thallinger, Member of the Board of Management of Allianz SE, Investment Management and Sustainability. “However, we should not lose sight of the serious consequences of climate change.

With these new guidelines, Allianz is strengthening its promise to contribute to an orderly decarbonization of the economy.”

Allianz is committed to actively driving the transition towards renewable energy sources, supported by significant underwriting and investment capacity and appetite for renewable risks. Consequently, green energy projects of oil and gas companies will not be restricted in any way.

Addressing the mid-term decarbonization of energy sector Allianz started limiting financing coal-based business models in 2015, followed by restrictions in insurance in 2018, and aims to completely withdraw from the coal segment by 2040. To limit global warming to 1.5°C, the global economy needs to move away faster from fossil fuels. In a newly-released report, the Intergovernmental Panel on Climate Change stated that worldwide GHG emissions must halve by 2030 compared

to 2020 levels. After targeting thermal coal as a key contributor to GHG emissions, companies and governments need to act to reduce GHG emissions from oil and gas. Consequently, and with careful consideration of the geopolitical developments, Allianz has decided to adjust its investment and underwriting strategy for the global oil and gas industry. The new guideline complements the existing Allianz ESG Integration Framework and its sensitive sector approach.

The oil and gas guideline in detail: 1. As of January 1, 2023, Allianz will not issue new single-site and stand-alone P&C insurance coverages (plus not renew existing contracts as of July 1, 2023) and will not provide new funding for projects in • exploration and development of new oil and new gas fields (upstream) • construction of new midstream infrastructure related to oil, • construction of new oil power plants, • practices relating to the Arctic (as defined by AMAP, excluding operations in Norwegian territories) and Antarctic, coal-bed methane, extra-heavy oil and oil sands, as well as ultra-deep sea. This pertains to both new and existing projects/operations.

1. As of January 1, 2025, we will only insure and invest in those oil and gas companies which have committed to achieving netzero greenhouse gas emissions by 2050 in alignment with science-based 1.5°C pathways, across all three greenhouse gas emission scopes. This applies to major oil and gas companies with above 60 million barrels of oil equivalent production in 2020 that are estimated to represent about 85% of the hydrocarbon production of the oil and gas industry combined.

Additionally, the companies should ideally align their operations and disclosures

with the Climate Action 100+ Net-Zero Company Benchmark requirements.

3. As of January 1, 2025, we will tighten our oil sands approach and provide no insurance, facultative reinsurance or funding for companies with more than 10% (previously 20%) of revenue from oil sands across all lines of business.

4. Allianz will continue to support ring-fenced and stand-alone construction and operational insurance of, as well as project investments in green and low-carbon energy (including on/offshore wind, solar, green hydrogen and blue hydrogen, if lifecycle emissions of those projects are verified to be similar to green hydrogen) to facilitate the rapid deployment of these technologies.

“We are fully committed to supporting our clients with their transition plans to net-zero, until the changes come into effect in two years. The energy sector is currently undergoing a significant transformation, driven by technological innovations, which creates a tremendous business opportunity for new risk transfer solutions and services in the renewable energy space,”, says Christopher Townsend, Member of the Board of Management Allianz SE Global Insurance Lines & Anglo Markets, Reinsurance, Middle East and Africa.

Targeting net-zero operations by 2030 Allianz has additionally accelerated its climate targets for its business operations and plans to reduce its GHG emissions by 50% versus 2019 by 2025. In order to achieve the net-zero target by 2030, the company plans to reduce its emissions by 70% versus 2019 by strengthening its environmental management and sourcing 100% renewable electricity by 2023. The key drivers will be the shift to a fully electric corporate car fleet by latest 2030

and a reduction of 40% GHG emissions deriving from travel activities by 2025. To address its remaining emissions, Allianz will use highquality removal solutions focusing on promoting high performance of carbon removal.

In addition, Allianz will ask 100% of its global suppliers to have a public commitment to netzero GHG emissions in line with 1.5°C degree path by 2025. Barbara Karuth-Zelle, Member of the Board of Management of Allianz SE, Operations, adds: “For some years, we have already been using two important levers to reduce Allianz’s internal greenhouse gas emissions. First of all, our 155,000 employees are highly committed to reducing their personal carbon emissions and are sensitized by internal campaigns. Secondly, our facilities, IT and fleet management are focused on renewable energy use and the reduction of business travel, waste, electricity and water usage. Finally, we are activating another powerful lever by sharing ambitious emission targets with our suppliers. Working together as one ecosystem, we will expand our climate impact, taking a significant step towards net-zero.”

Sustainability Report shows continued progress Allianz Group has today released its 21st Sustainability Report, which shows the continued progress of the Group towards tackling pressing challenges such as climate change, inequality, and exclusion. The company has integrated sustainability further in core business processes, from creating a diverse workplace to reducing environmental impact and listening to customers. In 2021, employee satisfaction with the corporate culture (Inclusive Meritocracy Index) rose to 84 out of 100 points (2020: 78).

Customers also gave Allianz high marks in 2021: 78 percent of Allianz entities had a Net Promoter Score (NPS) above market average or the loyalty leadership in the respective market.

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FRIDAY, MAY 6, 2022

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| FEATURE

FRIDAY, MAY 6, 2022

The Future of Work Capsules:

A Look at Commodity Developments and the Global Looming Crisis

By Baptista Sarah Gebu (Mrs.) Happy Mother’s Day to all moms, both here on Earth and up in Heaven.

I’m forever grateful, and I look up to you more than you know. Happy Mother’s Day to an amazing woman I’ll always admire, appreciate and love! I wish you too if you endeavor to be a good mother figure to this present generation. May the world’s definition of terms not corrupt your moral values and understanding of the true African family system. Let’s celebrate our mothers.

Are you aware of the emerging cooking oil crisis looming? Oil market heads for ‘biggest supply crisis in decades’ with Russia’s exports set to fall according to CNBC news. Oil crisis, a sudden rise in the price of oil that is often accompanied by decreased supply. Since oil provides the main source of energy for advanced industrial economies, an oil crisis can endanger economic and political stability throughout the global economy.

The 1973 oil crisis or first oil crisis of October 1973 of the Yom Kippur War could offer some lessons. The crisis played a key role in the economic downturn of the 1970s. Oil prices jumped 350%, and the higher costs rippled through the economy. Although business and government asked consumers to help by conserving energy, and entrepreneurs worked on solutions, the economic crises worsened. As things got more expensive, businesses laid off workers. Inflation and economic stagnation produced “stagflation” which shook confidence as recorded by the American museum account of the crisis. Are you ready for the future of work? What informs your readiness?

There are lessons we can learn from the commodity markets developments as we take a closer look at the looming cooking oil crisis. History often repeats itself.

Being a student of history, understanding the past, prepares us for the future.

The current Russian and Ukraine war could have some effects on crude oil, natural gas, fertilizer, wheat and metals supply at minimum. The war in Ukraine has been a major shock to commodity markets, coming on top of pandemicrelated supply chain disruptions as well as production shortfalls. The war has led to significant disruptions to the production and trade of commodities for which Russia and Ukraine are key exporters, including food commodities (such as wheat and sunflower oil) as well inputs used to grow food (coal, natural gas, and fertilizers). A continuation of the war beyond this year could reverse the expected easing of food commodity prices in 2023 as postulated by the recent World Banks report on the impact of war in Ukraine on commodity markets.

Rising food prices could increase food insecurity. This could increase even more, given the reliance on food imports from Ukraine and Russia. Even before the Ukraine war, the Covid -19 pandemic had already taken a toll on

food insecurity. According to the Global Report on Food Crises, an estimated 161 million people were facing a food crisis or worse in 2021, up from 147 million in 2020. Populations facing a crisis, which are typically in countries with conflict, include Democratic Republic of Congo (26 million), Afghanistan (23 million), Nigeria (23 million), Ethiopia (16 million), and Yemen (16 million). On war-driven disruptions in food trade, higher food price inflation, and higher costs of administering food assistance efforts are likely to make more people food insecure.

Narrowing down to something as basic as cooking oil, what do we need to know about the looming global oil crisis? According to data from the United States Department of Agriculture, 85% of global palm oil production comes from Indonesia and Malaysia. Ukraine and Russia are the leading sun-flower oil producing countries. Vegetable oils production countries remains Indonesia, China and Malaysia.

This one affects each one of us, as there is an emerging global cooking oil crisis looming that will soon be felt in our kitchen. The biggest producer of palm oil has block its ports, the world’s biggest exporters of sunflower oil is at war, the producers of soya bean oil are battling the climate crisis, so are producers of granular oil. Should you be worried?

Where next can we source our cooking oil to support us run our kitchen and food preparation.

As the world celebrates mother’s day, I share something for you to ponder on.

These celebrations usually come with feasting, cooking, partying and love feast. We need food to celebrate and oils usually will play a very significant roll.

Are you vegetarian, your salads will need oil for dressing, if you enjoy the big fishes and other proteins you will need oil for cooking. From baking to grilling, to air frying to deep frying, we need oils but oil supplies are running dry. What does the future holds. Should we be stocking up? Let’s take a closer look at what really is happening in our world now. For the future, our ability to learn from the past will support us make an informed decision.

Ukraine is the world’s biggest exporter of sunflower seed oil, and exports 5.4 million tons of edible oil each year which is almost half of the world’s sunflower oil supply but Ukraine is at war and supplies have been cut. Here comes also Russia accounting for 25% of the world’s sunflower oil and Russia is the one wagging this war affecting the supply chain of edible oils too. Let’s get to Canada to observe as the worlds’ top exporter of rapeseed oil as its experiencing extreme weather and climate issues. Argentine, Brazil and Paraguay are among the top exporters of soya-beans oil but these countries are battling severe drought.

Malaysia, the world second biggest exporter of palm oil is experiencing what

we know to be labour shorter and oil supply chains are drying up. Indonesia is the biggest exporter of Palm oil, the 2022 reports indicates the country is banning palm oil exports due to local shortages.

There is an increase of 40% in prices of palm oil and people are protesting against the price increase a reason accounting for governments ban on exports of the palm oils. According to Aljazeera news, Indonesia the world’s biggest edible oils shipper, will widen an export ban to include crude palm oil, adding to uncertainty in a market that’s suffered dizzying price swings and threatening to worsen global food inflation.

Meanwhile, they account for one-third of the world’s oils exports that are 30 million tons of vegetable oil every year.

India and China are some of Indonesia’s biggest oil buyers. India depends on Indonesia for nearly half of its palm oil supply as it imports 13 million tons of edible oils each year. Out of these totals, palm oils account for 60 % of the total while’s soya bean oil and sunflower oils accounts for 25 % and 12 % respectively.

High consumption and insufficient oil seed production could explains this high imports, in India reports have it that the per capital edible oil consumption is 19kg per person per year. Which countries are you and where do your oil supplies comes from. The supply chains are drying up.

Looking at country exports of Palm oils. We can mention Indonesia (55%), Malaysia (31.2%), Netherlands (3.7 %), Germany (1.2 %), Estonia (0.7%), and the rest of the world for 8.2 %. But all these put together cannot compensate for Indonesia’s export. The demand is more than the supply. Experts warn prices of edible cooking oils could go up by 20%. Developing countries could be the hardest hit because they depend on cheaper cooking oils like palm oils as against more expensive options like olive oil and sunflower oils. Prices of oils are soaring as we see increases in the US and European markets for Palm oils, Rapeseed and Vegetable cooking oils.

As a Ghanaian and Africa, be encouraged to return to Eden. Sankofa is good. Palm oils, coconut oils and palm

kernel oil are among some of the best organic edible cooling oils. This is the time to make a fortune of the looming cooking oil crisis. Get to Northern Ghana; families still cook with the Shea butter because its organic. Allow me to be your influencer to make healthy edible choices.

According to health-line “some seed oils, such as sunflower oil, vegetable oil, soy bean oil and canola oil, are considered to be ‘refined”. Seed oils are ‘highly inflammatory and toxic’ to the body, and should not be used when cooking. Refined vegetable oils were not available until the 20th century, when the technology to extract them became available. These are extracted from plants using either a chemical solvent or oil mill then often purified, refined, and sometimes chemically altered. Healthconscious consumers prefer oils that are made by crushing or pressing plants or seeds, rather than those produced using chemicals”. Use more of the natural coconut and palm oils.

I have always said that my philosophy on body lotion is this - if the body lotion cannot be eaten, please don’t apply in on your body. That’s the main reason I use Shea butter. Its edible for food and good as body lotion. What will you do as a consumer? Should you be socking up to anticipated panic buying and rationing of the commodities due to sales in limited quantities. In Spain, Italy and Turkey the oil rationing is happening per reports.

While biofuel uses be reconsidered in relation to edible cooking oil. How can Africa take advantage of this challenge and turn it into opportunity for its continents.

The African Continental Free Trade Agreements needs to start mapping up some strategies to support the one market for Africa.

Where do we get that blue print? This one market must not be another talk shop.

Its results must be easily accessed and verified. What lessons are commodities markets offering us in this looming global markets cooking oil crisis? We support your international trade needs. Think FoReal HR Services.

Baptista is an influencer, a human resource professional with a broad generalist background. Building a team of efficient & effective workforce is her business. Affecting lives is her calling! She is a Hybrid Professional, HR Generalist, strategic planner, innovative, professional connector and a motivator. You can reach her via e-mail on forealhrservices@gmail.com You can follow this conversation on our social media pages Facebook / LinkedIn/ Twitter / Instagram: FoReal HR Services. Call or WhatsApp: +233(0)262213313. Follow the hashtag #theFutureofWorkCapsules #FoWC

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| EDUCATION

FRIDAY, MAY 6, 2022

Adaptation financing must go to those who need it most The Africa Adaptation Acceleration Program (AAAP) hosted a session titled, “AAAP: Transformative Adaptation to Accelerate and Scale Climate Action” at the Virtual Gobeshona Global Conference on 29 March.

The session focused on policy shifts, the enabling environment, financing, community engagement and private sector involvement to accelerate and scale climate adaptation in Africa.

The session brought together policy makers, sustainable financiers, climate resilience experts and youth advocates to discuss the latest report by the Intergovernmental Panel on Climate Change (IPCC)(link is external) that calls for increased speed and scale in implementing adaptation actions.

“Climate change impacts are already occurring, faster and more severely than previous IPCC reports indicated,” said Dr. Rebecca Carter, the Acting Director, Climate Resilience Practice at the World Resources Institute, setting the scene for the session. “This new report(link is external) makes it clear that we are already facing irreversible losses and damages to human societies and ecosystems around the world, “Carter added.

Prof.

Philip Antwi-Agyei,

an Associate Professor at the Kwame Nkrumah University of Science and Technology and Lead Author of IPCC’s special report on the impacts of global warming of 1.5 °C said there is the need to incorporate indigenous knowledge with scientific knowledge to develop the most effective adaptation interventions and solutions.

Farmers, use indigenous knowledge to predict drought and rainfall and this knowledge is important for adaptation action, Antwo-Agyei added.

Zambia Ministry of Green Economy and Environment official Chitembo Kawimbe Chunga said adaptation should be integrated into local and national development plans.

She added that laws, policies and regulations on adaptation exist in Zambia that show where and how to adapt. Zambia is working with development partners including the African Development Bank to explore best practices for adaptation and resilience building among communities. Chunga is also the National Coordinator of both the Transforming Landscapes for Resilience and Development and the Zambia Strengthening Climate Resilience projects.

The audience followed

presentations on different funding sources, including green bonds and blended finance to mobilise finance for adaptation.

According to Peter Wamicwe, a Sustainable Finance Specialist at the CGIAR, “investors need to come in in numbers and have different areas of focus. Some can focus on financial returns while others on environmental and social impact.”

Crowding in different types of investors can reduce risk and achieve impact, Wamicwe said.

AAAP – a joint initiative of the African Development Bank and the Global Center on Adaptation – aims to mobilise $25 billion to drive adaptation across the African continent to strengthen food security for at least 10 million people, support one million youth with entrepreneurship skills and job creation, and integrate climate resilience into about $7 billion worth of infrastructure investments, among other results.

Speaking during the session, Senior Director for Africa at the Global Center on Adaptation, Prof.

Anthony Nyong said that AAAP is a strong response to another crisis: climate change.

“What is crucial is that this program is an Africa-owned and Africa-led response to the continent’s vulnerabilities and

opportunities,” Nyong said.

In a panel discussion on the role of youth in climate adaptation, Aramide Abe, Regional Manager, Youth Jobs and Entrepreneurship, Global Center on Adaptation said youth have demonstrated ingenuity to drive adaptation solutions.

She added that youth-led start-ups on the continent are creating solutions and mobilising financing, and that “AAAP is supporting youth-led businesses on the continent to avoid the ‘valley of death’ that the majority of businesses on the continent go through due to lack of skills and funding.”

Alphaxard Gitau, a youthful dairy farmer in Kenya and market value chain specialist, said that while financing is available it needs to be structured in a way that meets the needs of youth The panelists recommended putting adaptation finance in the hands of those who bear the brunt of climate change. They urged the use of a blend of public and private finance to target and tailor interventions and that the potential of youth should be harnessed in practical ways to effect change, and to scale and sustain adaptation actions across all spheres.

| NEWS

FRIDAY, MAY 6, 2022

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OBG, ADCA partner on new focus report … aimed at highlighting opportunities for investors to help establish an ICT ecosystem A new focus report, produced

by Oxford Business Group (OBG) in partnership with the Africa Data Centres Association (ADCA), will highlight the opportunities for investors to help establish an ICT ecosystem that will be key in driving the continent’s economic transformation.

The report represents OBG’s continued collaboration with ADCA, constituting the second edition of the “Data Centres in Africa Focus Report” published in 2021 which explored the urgent need for more facilities offering these services to be rolled out against a backdrop of rising demand from industry players operating in the region’s increasingly digitised economy and significant capacity shortfalls.

With competition for investment set to be fierce in the post-pandemic era, the first edition had analysed Africa’s strengths, led by its rapidly growing, youthful, internetconnected population. It had noted that since most Africans access the internet via mobile devices, the continent may well be able to bypass some of the traditional stages of industrial development in its uptake of new technologies.

In the new edition, subscribers will find extensive coverage of the progress achieved in mobile connectivity and international internet bandwidth, and the

evolution of initiatives to establish world-class data centres across Africa. The report will track the steps taken by a number of African governments to draw up digitalfirst policy agendas in moves that are expected to galvanise growth and create jobs. It will shine a light on the dissemination of data centres at a time when countries are keen to enhance their connectivity infrastructure and local content development to boost digital transformation and advance technologies such as AI, cloud, and edge computing across Africa.

The report will also examine the importance placed on embedding sustainability principles in the development of the ICT ecosystem from early stages, with a particular focus on solutions that ensure energy efficiency in data centres.

Subscribers will benefit from indepth case studies and viewpoints by representatives from key industry player, including a contribution from Ayotunde Coker, Chairman, African Data Centres Association (ADCA) and CEO of Rack Center, in which he explains why the time is ripe for the DC industry to scale up across the continent.

“The last year has seen an acceleration of investments in critical connectivity infrastructure and the dissemination of data centres across the continent

with operators expanding their footprint to power the exponential growth in digitalisation and data content consumption fuelled by the Covid-19 pandemic.

With greater installed capacity, we are seeing ever stronger fundamentals that favour Africa as a destination for data centres.”

Karine Loehman, OBG’s Managing Director for Africa, said that with the Covid-19 pandemic having accelerated digitalisation, efforts were under way to attract the investment needed to unlock the continent’s full digital potential, with areas such as ICT upskilling and infrastructure rollouts seen as priorities.

“Digital technology is expected to play a multifaceted role in steering Africa’s economic development, helping to improve its competitiveness, facilitate the overhaul of public services and strengthen food security,” she said. “Our research confirms that investors are already giving Africa’s digital economy an injection of the capital required, despite the somewhat challenging environment. With broadband internet access seen as a key enabler of the digital economy and still lacking across much of Africa, we expect demand for DC services to gather momentum in the medium term.”

The first edition of the “Data Centres in Africa Focus Report” is available to view and download

at https://oxfordbusinessgroup. com/news/focus-report-howafrica-positioned-destinationdata-centres The study on Africa’s DC industry forms part of a series of tailored reports that OBG is currently producing with its partners, alongside other highly relevant, go-to research tools, including a range of countryspecific Growth and Recovery Outlook articles and interviews.

Click here to subscribe to Oxford Business Group’s latest content: http://www.oxfordbusinessgroup. com/country-reports

12

| NEWS

FRIDAY, MAY 6, 2022

Sanlam and Allianz join forces to create African insurance giant Sanlam, the largest non-banking financial services company in Africa, and Allianz, one of the world’s leading insurers and asset managers with a century of history in Africa, have agreed to combine their current and future operations across Africa to create the largest Pan-African non-banking financial services entity on the continent. This combination means that customers across Africa will benefit from the expertise and financial strength of two respected and well-known brands.

The joint venture will house the business units of both Sanlam and Allianz in the African countries where one or both companies have a presence. Namibia will be included at a later stage and South Africa is excluded from the agreement.

STRONG SYNERGIES The combined operations of Sanlam and Allianz will create a premier Pan-African non-banking financial services entity, operating in 29 countries across the continent. The joint venture will be the largest Pan-African insurance player and is expected to be ranked in the top three, in the majority of the markets where the entity will operate. The entity is expected to have a combined total group equity value (GEV) in excess of 33 billion South African rand (approximately 2 billion euros).

Sanlam and Allianz will leverage each other’s strengths to unlock synergies and provide customers with best-in-class, innovative insurance solutions and technical excellence. The joint venture will create value for all stakeholders through greater economies of scale, broader geographic presence, larger combined market share, and a more diversified product offering.

Combining Sanlam’s expertise in Africa with Allianz’s global capabilities and insurance solutions, particularly for multinational businesses, the partnership aims to increase life and general insurance penetration, accelerate product innovation and

drive financial inclusion in highgrowth African markets.

“In line with Sanlam’s stated ambition to be a leading Pan-African financial services group, the proposed joint venture will enable us to take a significant step towards realising that ambition. It will also strengthen our leadership position in multiple key markets that are core to our Africa strategy, building quality and scale where it matters. We are delighted to have Allianz as partners and believe their expertise and financial strength will add tremendous value to our businesses,” says Sanlam Group CEO Paul Hanratty.

“In accordance with our enterprise

strategy to expand our leadership position through scale and new partnership models, Allianz is pleased to accelerate its growth in this important region through a partnership with the undisputed market leader. Sanlam’s capabilities extend our local reach and market penetration, and the joint venture allows us to establish leading positions in key growth markets for Allianz,” says Member of the Board of Management of Allianz SE Christopher Townsend.

“Further, Sanlam shares our company values, our purpose of securing the future for our clients, and our longterm, generational approach to growing in new markets.”

The chairmanship of the joint venture partnership will rotate every two years between Sanlam and Allianz.

The CEO of the entity will be named in due course.

The agreement is subject to certain conditions precedent, including but not limited to the receipt of required approvals from competition authorities, financial/insurance regulatory authorities and any customary conditions that Sanlam and/or Allianz would be required to fulfil for each jurisdiction.

Smile4Ghana, Jonmoore International embark on mass dental care exercise in Tema Newtown

By Patrick Paintsil

A UK-based dental charity organization Smile4 Ghana, with its logistics partner Jonmoore International undertook a three-day dental screening and treatment for residents of Tema Newtown in the Greater Accra Region.

Scores of residents within Tema Newtown and surrounding communities benefitted from the free mass oral care which was held from April 26-28, 2022. The screening and provision of dental care on the final day was carried out at the St. Nicholas School, Bankuman for the pupils, staff and community.

The dental outreach is the initiative of three dental specialists based in the UK and their spouses. They are Dr. George and Mrs. Phil Brown, Dr. Malcom Farr and Mrs. Cynthia KudziFarr and Dr. Chris Vondee and Mrs. Pat Vondee.

Speaking to journalists on the final day of the screening exercise, Chief Executive Officer and Managing Director of Jonmoore, Mr. Hilton John Mitchell indicated that providing logistics support to Smile4Ghana for the mass oral care activity was the company’s small way of impacting the lives of people across the country, particularly in the area of healthcare.

“Like most organisations do, we always want to give back to society and the community within which we

operate both directly and indirectly through the efforts of our staff and team. We’ve had this relationship with Smile4Ghana for quite a while now and the decision by the team is always to look at areas that are really critical and bring a meaningful impact to the people,” he said.

Mr. Mitchell added: “Our commitment as a company is to support the dentists who have come from the UK with all the logistics they’ll require to give the people of this community good dental care. This is what we do as a company and we are looking forward to supporting all the time.”

Jonmoore International as a socially

responsible company focuses on a continuing commitment to contribute to the socio-economic development and improving the quality of life of its host communities in an ethical manner.

Beside healthcare, Jonmoore’s corporate social responsibility (CSR) activities focus on education and infrastructure development.

The company has over the years supported the Tema Traditional Council Education Fund, making yearly donations to meet the educational needs of needy but brilliant students in the community.

It has also adopted Eugemont

Orphanage and Peggy Good School of Hope, Ve-Kolonu , Volta Region.

Jonmoore provides quarterly allocation of foodstuff to the orphanage for their wellbeing and supports the school with an educational trust among others.

“Per our CSR mandate, we focus on education, infrastructure development and health by supporting underprivileged communities specifically, parts of the country where things take so long to get to. That’s our direction,” Mr. Mitchel added.

Founder of Knight Smile Dental Centre in Accra and the leader of Smile4Ghana, Dr. George Brown indicated that most of the diseases that were treated over the threeday exercise were preventable and called for increased public health education.

On the choice of location for this year’s exercise, he said: “The decision to carry out this year’s activity in Tema was to ensure a slowly comeback as the pandemic had stopped the exercise for the past two years.

“We chose Tema Newtown also because it is a fishing community with relatively deprived residents, with the towns heavily linked to our partners Jonmoore and MPSG.”

13

| FEATURE

FRIDAY, MAY 6, 2022

Implement the global security initiative for lasting peace and universal security

By H.E. LU Kun, Chinese Ambassador to Ghana

For the world, the year 2022 begun with a number of challenges. The world, far from being peaceful and tranquil, has not yet recovered from COVID-19 pandemic, and the Ukraine crisis comes on the heel. As regional security hotspots keep flaring up and the European security issue receives worldwide attention, the international situation which is already rife with uncertainties has become more complex and volatile. With growing threats posed by unilateralism, hegemony and power politics, and increasing deficits in peace, security, trust and governance, mankind is facing more and more intractable problems and security threats. This situation should not continue anymore because it runs counter to the trend of history as well as the security and wellbeing of humanity. At such a critical moment, countries need solidarity, not division; dialogue, not confrontation.

It is against this background that President Xi Jinping proposed the Global Security Initiative with the future of all humanity in mind.

The Initiative is yet another global public good offered by China and a vivid illustration of the vision of a community with a shared future for mankind in the security field.

The Global Security Initiative champions the commitment in six areas: stay committed to the vision of common, comprehensive, cooperative and sustainable security, and work together to maintain world peace

and security; stay committed to respecting the sovereignty and territorial integrity of all countries, uphold noninterference in internal affairs, and respect the independent choices of development paths and social systems made by people in different countries; stay committed to abiding by the purposes and principles of the UN Charter, reject the Cold War mentality, o p p o s e unilateralism, and say no to group politics and bloc confrontation; stay committed to taking the legitimate security concerns of all countries seriously, uphold the principle of indivisible security, build a balanced, effective and sustainable security architecture, and oppose the pursuit of one’s own security at the cost of others’ security; stay committed to peacefully resolving differences and disputes between countries through dialogue and consultation, support all efforts conducive to the peaceful settlement of crises, reject double standards, and oppose the wanton use of unilateral sanctions and long-arm jurisdiction; stay committed to maintaining security in both traditional and non-traditional domains, and work together on regional disputes and global challenges such as terrorism, climate change, cybersecurity and biosecurity.

The launch of this major initiative responds to the urgent need of the international community to safeguard world peace and prevent conflicts and wars, conforms with the common pursuit of all countries to uphold multilateralism and safeguard international solidarity, responds to the common aspiration of all peoples to overcome the difficulties and jointly create a better post-Covid world. Common security means respecting and ensuring the security of each and every country. Comprehensive security means upholding

security in both traditional and non-traditional fields. Cooperative security means promoting the security of both individual countries and the region as a whole through dialogue and cooperation. Sustainable security means that we need to focus on both development and security so that security would be durable.

Security must be universal, equal and inclusive. One cannot seek the security of itself or some countries while leaving the rest insecure, still less should one seek the so-called absolute security of itself at the expense of the security of others.

The connotation and extension of security is ever-growing. In west Africa and many other regions in the world, the challenges brought by terrorism, transnational crimes, environmental security, cybersecurity, energy and resource security and major natural disasters are on the rise remarkably. Traditional and nontraditional security threats are interwoven. No country can stay aloof or unaffected. We must pull together in these trying times, enhance communication and coordination to turn the crisis into an opportunity.

An ancient Chinese philosopher observed, “Stability brings a country prosperity while instability leads a country to poverty.” Security and peace is the premise and foundation for development in all its manifestation. It has been proven time and again in the human history that development is out of the question without peace, just like water without source and a tree without roots. The Cold War mentality would only wreck the global peace framework, that hegemonism and power politics would only endanger world peace, and that bloc confrontation would only exacerbate security challenges in the 21st century.

On the Ukraine issue, China has adopted an objective and impartial attitude. We independently assess the situation and make our position clear on the basis of the merits of the issue. As a Chinese proverb puts it, it takes more than one cold day to freeze three feet of ice. The situation in Ukraine has become what it is today for a variety of complex reasons. What is needed to solve complex issues is a cool head and a rational mind, not adding fuel to the fire which only intensifies the situation.

To resolve the current crisis, we must uphold the purposes and principles of the Charter of the United Nations (UN) and respect

and protect the sovereignty and territorial integrity of all countries. We must adhere to the principle of indivisible security and accommodate the legitimate security concerns of the parties involved. We must settle disputes by peaceful means through dialogue and negotiation. We must keep in mind the long-term peace and stability of the region and put in place a balanced, effective and sustainable European security architecture.

The Global Security Initiative upholds true multilateralism. It is open to the world and welcomes the participation of all countries.

Besides putting forward this major Initiative, China will further take earnest actions in its implementation. We are ready to work through the UN and other bilateral and multilateral channels to engage in in-depth exchange of views with all parties on the Initiative so as to inspire each other, pool global synergy, follow through on the Initiative, and contribute wisdom and strength to the political settlement of various international and regional hotspot issues and safeguarding world peace and tranquility.

On April 19, 2022, H.E. Wang Yi, State Councilor and Foreign Minister of China had a telephone conversation with Hon. Shirley Ayorkor Botchwey, Minister for Foreign Affairs and Regional Integration of Ghana.

The two Ministers reached consensus on strengthening collaboration, safeguarding international fairness and justice together, jointly opposing hegemonism and power politics and defending the overall interests of the two countries and developing countries as well.

As a responsible major country, China will continue to hold high the banner of multilateralism, unswervingly follow the path of peaceful development, and always be a builder of world peace, a contributor to global development, a defender of the international order and a mediator in hotspot issues. China will work with all peace-loving countries including Ghana to strengthen solidarity and cooperation, jointly meet challenges, and continue to promote the building of a community with a shared future for mankind. We will strive together for a brighter and better future for the world.

14

| AFRICAN BUSINESS

FRIDAY, MAY 6, 2022

GCB Bank says market dominance agenda on course Publicly listed lender and Ghana’s first indigenous and largest bank, GCB Bank Plc, has set out on an ambitious journey to dominate the domestic financial market pinned on sustained profitable growth, customer-centric innovations and aggressive digitalization.

To achieve this, the bank says it will drive revenue growth through cost containment, win over the now vibrant digital and payments business as well as build a robust and attractive brand across market segments.

Addressing stakeholders at its turn on the Ghana Stock

Exchange’s Facts behind the Figures, Managing Director of the bank, Kofi Adomakoh, said that strategic vision of the bank over the years has been to keep to the growth path, invest in its people and to enhance operational efficiency.

“We now have a robust digital platform in place to deliver superior value to customers as well as a segmented customer base to re-align products and services to meet customer needs, aside expanding our loan book and deepening our performance management systems,” he said.

He added: “GCB Bank has

delivered significant and consistent growth over the review period and will continue on the same trajectory through superior value proposition to our clients, driving operational excellence and investing in our people.”

Strong revenue performance from new customer acquisition, an enhanced wallet share, new revenue streams and increased loans culminated in an enhanced profit before tax for the year under review.

GCB Bank posted impressive financial results with profit before income tax increasing by 34 per cent in 2021. Growing from GH¢

602 million in 2020 to GH¢810 million last year. GCB Bank also increased its total asset from GH¢15.5 billion in 2020 to GH¢18.3 billion in 2021, representing a growth of 18 per cent.

Looking ahead, Mr. Adomakoh indicated that the bank will keep growing its balance sheet and capital whilst pushing downwards cost to income ratio.

“We will ensure that NPLs are under control whilst strategic initiatives to improve customer experience underway,” he added.

Disclaimer to all Zeepay customers and the general public It has come to our notice that investment schemes claiming to be affiliated with Zeepay are being advertised on WhatsApp and other social media platforms with the names “Zeepay Exchange”, “Zeepay Instant Money Exchange”, “Mr. McBright from Zeepay Investment”, and “Zeepay Investment” among others.

Zeepay is not in any way associated with these individuals

or entities advertising investment schemes, and we advise our cherished customers and the general public to avoid and desist from partaking in these schemes as you do so at your own risk.

Additionally, Zeepay does not offer any of the products advertised in these messages.

Kindly note that any official communication, notices or publications will be shared via

our website: www.myzeepay.com or via any of our official social media platforms; Instagram: @myzeepay LinkedIn: Zeepay Ghana Limited Twitter: @myzeepay Facebook: Zeepay Kindly contact Zeepay on 0302905140 / 0302905700 or WhatsApp 0501567073 for further

information on our products and services.

For and behalf of, Zeepay Ghana Limited

FRIDAY, MAY 6, 2022

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16

| NEWS

FRIDAY, MAY 6, 2022

| COMMENT/ANALYSIS

FRIDAY, MAY 6, 2022

17

Should Europe stop paying for Putin’s war?

Is it right for European countries to continue to pay Russia €1 billion ($1.1 billion) a day for energy when they know that they are funding Russia’s war of aggression against Ukraine?

Last month, Ukrainian President Volodymyr Zelensky said that European countries prospering from Russian energy are “earning their money in other people’s blood.” Russia did not need to take peace talks seriously, he suggested, because of the billions it receives for its oil and gas exports. Mikhail Khodorkovsky, the former CEO of the Russian oil company Yukos, now in exile, told the BBC that an embargo on Russian oil and gas would be a serious blow to President Vladimir Putin, causing him “to lose over half his revenue.”

Yet no immediate cut-off is being considered. European Union Economic Commissioner Paolo Gentiloni said only that the EU would reduce its dependence on Russian oil and gas by twothirds by the end of the year, and to zero by 2027. And while Germany, the biggest European purchaser of Russian energy, has moved up its initial end-of-year timeline for halting oil imports to the end of this summer, with gas imports continuing, that may still be too late to help Ukraine.

In Poland, where almost three million Ukrainians, mostly women and children, are finding shelter at the moment, the government waffled, initially calling for a

European embargo on Russian oil and gas, and then voting against it.

They were saved from hypocrisy only by Russia unilaterally cutting off the supply to both Poland and Bulgaria, because they are “unfriendly” and refused to pay for the gas in rubles. These countries now have the chance to show the rest of Europe that life can continue without Russian gas.

How much pain should Europeans be willing to accept?

The Wall Street Journal recently quoted Giovanni Staunovo, a commodity analyst at UBS Group AG: “The European Union fully sanctioning Russian oil would be like saying tomorrow you cut your salary by 40% and you need to continue to live as if nothing has happened.”

But why should Europeans continue to live as if nothing has happened? Russia invaded Ukraine, causing 11 million people to leave their homes, including five million who have fled to other countries. As many as a half-million Ukrainians may have been forcibly deported to Russia. Mariupol, not long ago a peaceful city with a population of more than 400,000, has been totally destroyed, and many other cities have been severely damaged. Thousands, perhaps tens of thousands, of people, both civilians and members of the Ukrainian armed forces defending their country, have been killed and many more wounded. There is strong evidence that Russian

soldiers have committed war crimes, including murder, torture, and rape.

European countries might have responded to Russia’s clear breach of the United Nations Charter by declaring war on Russia and using their own armed forces to assist Ukraine in its resistance. Instead, they took the less risky course of imposing economic sanctions and sending weapons to Ukraine.

Viewing the sanctions as an alternative to military action puts into perspective the sacrifices that it is reasonable to expect from those paying Russia for the energy they are using. If ceasing to use Russian energy will mean economic hardship, is that really too much to ask?

Moreover, the sacrifice would not be a purely altruistic one.

The war in Ukraine is not only about Ukraine. A Russian military commander recently said that, “Control over the south of Ukraine is another way out to Transnistria, where there are also facts of oppression of the Russian-speaking population.”

Transnistria is a separatist region of Moldova. Such supposed “facts of oppression” of Russianspeaking people were, of course, the pretext for Russia’s invasion of Ukraine. They could be alleged in several other countries that were once part of the Soviet Union and have Russian speakers among their population. Ukraine is therefore the frontline of resistance to Putin’s aim of re-

establishing Russian dominance over regions dominated by the Soviet Union and, before that, the Russian czars.

If the Ukrainians had simply laid down their arms in the face of the apparently overwhelming Russian invading forces, as Putin seems to have expected, Estonia, Latvia, Lithuania, and Poland would have had to fear for their own security. And because all are members of NATO, the burden of their defense would have fallen on all members of the alliance. For citizens of states that are members of NATO, taking all possible steps, short of all-out war, to ensure that Russia does not conquer Ukraine is not even an altruistic sacrifice.

It is a long-term investment, for themselves and their children, in freedom, democracy, and the international rule of law.

The moral imperative to cease paying blood money to Russia is also an opportunity for European countries to fulfill their commitments, made in Rio de Janeiro in 1992, to prevent dangerous anthropogenic climate change. Lesia Vasylenko, head of the Ukrainian parliament’s climate sub-committee, has suggested that Ukraine’s devastated industries should be rebuilt with new technology to run on clean energy. The EU now has an additional reason to accelerate the timetable for reaching its goal of making Europe the first climate-neutral continent.

18

| MARKET REVIEW

FRIDAY, MAY 6, 2022

WEEKLY MARKET REVIEW FOR WEEK ENDING - APRIL 22, 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

16.78%

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

80.1%

STOCK MARKET REVIEW The Ghana Stock Exchange retreated for the week on the back of a decline in the price of 1 counter. The GSE Composite Index (GSE CI) lost 0.68 points (-0.03%) to close at 2,696.67 points, reflecting year-to-date (YTD) loss of 3.32%. The GSE Financial Stocks Index (GSE FI) also lost 1.23 points (-0.06%) to close at 2,219.66 points, reflecting year-to-date (YTD) gain of 3.15%.

Market capitalization declined marginally by 0.01% to close the week at GH¢64,040.47 million, from GH¢64,047.56 million at the close of the previous week.

This reflects YTD decrease of 0.71%.

Trading activity registered a total of 10,980,196 shares valued at GH¢10,983,012.32 changing hands, compared with 2,065,583 shares, valued at GH¢1,737,529 in the preceding week.

MTN dominated both volume and value of trades for the week, accounting for 98.57% and 98.54% 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 was flat against the USD for the week. It traded at GH¢7.1124/$, compared with GH¢7.1124/$ at week open, reflecting w/w and YTD depreciations of 0.00% and 15.55% respectively. This compares with YTD appreciation of 0.51% a year ago.

The Cedi appreciated against the GBP for the week.

It traded at GH¢9.1284/£, compared with GH¢9.2877/£ at week open, reflecting w/w appreciation and YTD depreciation of 1.75% and 10.97% respectively. This compares with YTD depreciation of 0.78% a year ago.

The Cedi also strengthened against the Euro for the week. It traded at GH¢7.6674/€, compared with GH¢7.6790/€ at week open, reflecting w/w appreciation and YTD depreciation of 0.15% and 10.95% respectively.

This compares with YTD appreciation of 2.14% a year ago.

The Cedi again appreciated against the Canadian Dollar for the week. It opened at GH¢5.6380/C$ but closed at GH¢5.5915/C$, reflecting w/w appreciation and YTD depreciation of 0.83% and 15.20% respectively. This compares with YTD depreciation of 1.17% a year ago.

FRIDAY, MAY 6, 2022

GOVERNMENT SECURITIES MARKET Government raised a sum of GH¢981.87 million for the week across the 91-Day, 182-Day and 364-Day Treasury Bills. This compared with GH¢777.59 million raised in the previous week.

The 91-Day Bill settled at 16.78% p.a., from 16.33% p.a. last week whilst the 182-Day Bill settled at 17.42% p.a., from 16.32% p.a. last week. The 364-Day Treasury Bill on the other hand settled at 19.67% p.a., from 18.85% p.a. recorded previously.

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

19

| MARKET REVIEW

COMMODITY MARKET

BUSINESS TERM OF THE WEEK

Crude Oil prices slipped for the week, posting a weekly loss of nearly 3.12%, on the prospect of weaker global growth, higher interest rates and COVID-19 lockdowns in China hurting demand, even as the European Union considers a ban on Russian oil that would tighten supply.

Brent futures traded at US$108.21 a barrel on Friday, compared to US$111.70 at week open. This reflects w/w loss and YTD gain of 3.12% and 39.12% respectively.

Gold prices fell 2% for the week and was set for its biggest weekly decline since mid-March as signs of faster policy tightening by the U.S. Federal Reserve lifted Treasury yields and the dollar. Gold settled at US$1,934.30 from US$1,974.90 last week, reflecting w/w loss and YTD appreciation of 2.06% and 5.78% respectively.

Prices of Cocoa declined for the week. The commodity traded at US$2,506.00 per tonne on Friday, from US$2,583.00 last week, reflecting w/w and YTD losses of 2.98% and 0.56% respectively.

Limit-on-Open (LOO) Order: A limit-on-open (LOO) order is a type of limit order to buy or sell shares at the market open if the market price meets the limit’s condition. This type of order is good only for the market opening and does not last for the whole trading day.

INTERNTIONAL COMMODITIES PRICES

Source: https://www.investopedia.com/terms/l/ limitonopenorder.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

FRIDAY, MAY 6, 2022

Africa fully committed to harnessing its clean energy potential with the African Development Bank In November 2021, stakeholders from around the world gathered in Kinshasa, Democratic Republic of Congo (DRC) for the DRC Business Forum to discuss moving Africa up the ladder in the battery, electric vehicle and renewable energy value chain and market. This event affirmed the continent’s ambition to harness its green energy potential and totally eliminate greenhouse gas emissions by 2050. The African Development Bank was one of the co-hosts of the DRC Forum, a clear sign of the Bank’s commitment to supporting Africa’s energy transition.

The following projects supported by the African Development Bank symbolize the continent’s efforts to reduce greenhouse gases, even though it is only responsible for 3.8% of global emissions: The Noor Ouarzazate Complex, south-east of Marrakesh, had ushered Africa into a new era at the beginning of the 2020s. With a capacity of 580 megawatts spread over four power plants, the complex is one of the biggest solar parks in

the world. More importantly, it supplies electricity to nearly two million Moroccans and prevents the release into the atmosphere of nearly one million tonnes of greenhouse gases every year.

In Chad, the Djermaya solar

renewable energy in Ghana, Guinea, Ethiopia, Kenya, Nigeria and Tunisia.

Africa, a net clean energy exporter?

At the 26th United Nations International Climate Conference,

power plant will soon be under commercial operation. In Senegal, too, 30 solar power plants are being constructed in the regions of Fatick, Kédougou, Kolda, Matam, Sédhiou, Tambacounda and Ziguinchor, with high public expectations.

In February 2022, the Board of Directors of the African Development Bank approved the Leveraging Energy Access Finance Framework and committed to investing up to $164 million to promote decentralized

COP26, held in Glasgow, Scotland, from 31 October to 12 November 2021, Bank officials affirmed this very fact: Africa has enormous energy potential to harness. “Now is the time for African countries to find ways to guarantee a cleaner future and become a net exporter of clean energies to Europe,” said Gareth Phillips, the Bank’s manager of climate and environment finance.

And the fact is, Africa has, in addition to natural gas, significant quantities of other resources,

including forests and minerals, arable land, and water and wind, capable of producing enough clean energy to meet the needs of its people and to industrialize, while supporting sustainable development.

These resources, including the minerals and metals used in batteries such as lithium and cobalt, should be exploited to support the global energy transition and the sustainable development of Africa. At the same time, we should maintain carbon neutrality and ensure food security as well as water and energy security for the African people, said environmental experts during one of the events hosted by the African Development Bank during COP26.

The 2022 Annual Meetings of the African Development Bank will be held in Accra from 23 to 27 May 2022. The theme of the meetings is: “Achieving climate resilience and a just energy transition for Africa”.

ICC Ghana invites Dr Sam Ankrah to chair board on trade, investment The International Chamber of Commerce (ICC), Ghana has invited an international investment banker, Dr Samuel Ankrah, to serve as chair on its trade and investment commission.

A letter signed by the SecretaryGeneral of ICC, Emmanuel Doni-Kwame in Accra, said; “As a distinguished organisation with a lot of experience in the trade and investment sector in Ghana, ICC deems it appropriate to invite you to serve as Chair of the ICC Ghana Commission on Trade and Investment.

“The ICC is the largest, most representative business organisation in the world.

Its hundreds of thousands of

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member companies in over 120 countries have interests spanning every sector of private enterprise.

“A world network of national committees keeps the ICC International Secretariat in Paris informed about national and regional business priorities,” it said.

The release said more than 2,000 experts drawn from ICC’s member companies feed their knowledge and experience into crafting the ICC stance on specific business issues.

It also said the United Nations, the World Trade Organisation, the G20 and many other intergovernmental bodies, both international and regional, are

kept in touch with the views of international business through ICC. “We should be glad to receive your positive response to this invitation.”

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