All entrants must be limited liability companies.Forcompanies with Government interest, Government ownership should be less than 50%, unless the company is listed on the Ghana Stock Exchange. All entrants must have a cumulative net operating profit for the most recent three-year period (2019, 2020 2021)
If you want to take part in the 19th edition of the Ghana Club 100 Awards, you can
annual and current corporate sector analysis.There will be honors given to the top 100 enterprises as well as the outstanding companies in strategic sectors, which include Agriculture and agribusiness, financial services, ICT, infrastructure, petroleum, mining services, manufacturing, tourism, health and education. Special Awards will also be given to exceptional corporate performers in other areas, such as Corporate Social Responsibility.
Eligibility Criteria:
register your interest now!
Following the launch of the 19th edition of the Ghana Club 100 awards, the Ghana Investment Promotion Centre is calling on Corporate Ghana to file for this year’s Awards.
The Ghana Club 100 Awards is a leading corporate initiative that highlights and promotes an open information culture within the Ghanaian corporate sector, provides incentives for improved performance, develops uniform criteria for evaluating this performance, and establishes an
Patriotism, honesty only way to beat the odds
Companies are ranked based on the following... More on page 4
Central bank urges exporters to act proactively in LOC acquisitions
MONDAY, SEPTEMBER 12, 2022 NEWS FOR BUSINESS LEADERS .COM.GH Story on page 2 Story on page 3 Story on page 3
Ranking Criteria
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GOGSPA sues Tullow Ghana over alleged Local Content Violation
By Eugene Davis
“When the last tree dies, the last man dies” they say and truly so because flora and fauna preserve the environment and hence human life, and at a time that economies are grossly feeling the harsh outcomes of climate change, the need to preserve our environment and green resources have become even more critical.
2 | THEBUSINESS24ONLINE.COM News/Editorial Your subscription along with the support of businesses that advertise in Business24 -- makes an investment in journalism that is essential to keep the business community in Ghana wellWeinformed.value your support and loyalty. +233AdvertisingNewsroom:editor@business24.com.ghContact:0302965315/Sales:242122742 Copyright @ 2019 Business24 Limited. All Rights Reserved. Limited
advised exporters within the country to be proactive when it comes to the acquisition of letters of commitment (LOC) so that bottlenecks are not encountered during exportation process.
According to the central bank, exporters should not wait till goods are at the ports ready for shipment before they begin processes to acquire the letter of commitment or seek resolution to challenges associated with the acquisition of the LOC.
He stated that the Integrated Customs Management System (ICUMS) which hosts the LOC system is able to block subsequent export transactions after noncompliance to the LOC regime.TheDeputy Director in charge of Foreign Banking Operations at the Bank of Ghana also disclosed that defaulters of the law that supports the LOC, can be subjected to fines or a jail term of up to 10 years. He reiterated the importance of the letter of commitment which has been in use since 2016.
Deputy Director, Foreign Banking Operations, Bank of Ghana, Eric Kweku Hammond
Now in is tenth year, the annual Garden and Flower Show challenges and motivates the youth and businesses in the sector to aspire to grow and reach their full potential, in order to improve their livelihoods and impact society.
The letter of commitment is a web-based export document that facilitates the repatriation of export proceeds to Ghana.
Mr. Hammond said applications for extensions are turned around within an hour.
unable to repatriate the export proceeds for your initial export within the 60-day period, there is a query system in the LOC regime that allows you to apply for an extended period and Bank of Ghana will gladly extend the period for you to enable you repatriate the proceeds.”
Aside the enviro-friendly outcomes, there is proven economic potential in the green economy, specifically the horticultural value chain.
According to Mr. Hammond, the regime allows the country to obtain the needed foreign exchange to pay for its huge import bills, shore up the national reserve, strengthen the cedi, contribute to national development and ensure consistency in export data.
“Assuming that you ask your clearing or forwarding agent to export for you without monitoring your non-conformity status, if you are unlucky and your goods get to the port after Friday, 5pm, you will have to wait till Monday for us to attend to you.”
By Eugene Davis
Horticulture fast becoming the new job-making machine
This year’s theme “Growth Unleashed” preps the mind of young Ghanaians to burst forth and to grow beyond the norms to achieve a blooming environment.Theglobal horticulture market is estimated to be valued at USD 20.77 Billion as of 2021 and is projected to reach US$40.24bn by 2026 at a compound annual growth of 10.2percent whilst global flower and ornamental plants market was valued at US$475.6m in 2020 and is expected to reach US$725.4m by the end of 2027, growing annually at 6.3percent during 2021-2027.
The Bank of Ghana official said not only has the digitization of the LOC system made it convenient
Recent statistics put proportions of the youth (15 to 35) that are unemployed and seeking work at 34.2percent. Unemployment is therefore considered by many to be the most critical issue affecting the country.
for exporters but also made it
Stratcomm Africa is leading the charge to green
It is trite to say that with the right national and individual orientation, policies, and drive, Ghana’s rich flora and fauna resources could provide millions of jobs to the country’s teeming youth.
Ghana for the varied purposes of beautification, wealth and job creation as well as a sustainable fight against climate change.
He said exporters wishing to apply for extensions beyond the
The Deputy Director in charge of Foreign Banking Operations at the Bank of Ghana, Eric Kweku Hammond, was speaking on the Eye on Port program.
Central bank urges exporters to act proactively in LOC acquisitions
in promoting research in herbal medicine and contribution to the media landscape over the years.
At the hearing of the suit, the legal representative of Tullow Ghana requested more time to respond to the application filed by the plaintiff. The court also advised parties to seek an amicable resolution of the matter, the case was thereafter adjourned to the 10th of October, 2022 for hearing of the motion.
Patriotism, honesty only way to beat the odds -Kennedy Agyapong
By Eugene Davis
The immediate past President of UPSA GRASAG, Albert Asomani, advised the incoming executives to be tolerant in their dealings with management, stressing that “you can be very assertive without being aggressive. Don’t fight management and whatever you want, you will get.”
Further, he said the universities and their products, especially the postgraduates, are to generate change and challenge existing dogma through research.
He urged the newly executives to be submissive and resolve to serve the student body rather than to come and lord over them.
Business mogul and presidential aspirant for the New Patriotic Party (NPP), Kennedy Ohene Agyapong, has urged graduating students and newly sworn-in student executives of the University of Professional Studies (UPSA) to strive to exhibit patriotism, honesty and discipline in their lives in order to beat the odds to Thesesucceed.principles in life, he noted, will not only make them good people but responsible citizens as Speakingwell.at the handing over and awards night ceremony of the Graduate Students’ Association of Ghana (GRASAG)-UPSA Chapter, in collaboration with the Student Representative Council (SRC) in Accra, on Friday, he said “whatever experience you have acquired in this school, build upon it; and take your destiny into your own hands. Be tolerant in your dealings with people and through it, develop patriotism, honesty and be disciplined. If we have these three pillars, we can change the fortunes of this country. I believe in the youth;
amended) by Petroleum (Local Content and Local Participation) (Amendment) Regulations 2021 (LI 2435) to Joint Venture Companies in Ghana by the defendant is Illegal.
They also wanted a declaration that the award of any petroleum contracts for provision of goods and services reserved exclusively for indigenous Ghanaian companies under Petroleum (Local Content and Local Participation Regulations) LI 2204 (as amended) by Petroleum (Local Content and Local Participation) (Amendment) Regulations 2021 (LI 2435) to joint venture companies in Ghana by the defendant is null and void.
The plaintiff seeks an order from the court directing the defendant to cancel every contract awarded for the provision of goods and services in contravention of the provisions of Petroleum (Local Content and Local Participation Regulations) LI 2204 (as amended) by Petroleum (Local Content and Local Participation) (Amendment) Regulations 2021 (LI“Damages2435). in favour of the
He was awarded a citation for his entrepreneurial efforts and contributions to the nation over theTheyears.chairman of the occasion,
indigenous Ghanaian companies under the laws in the upstream oil and gas sector were being taken away and awarded to foreign venture companies.
Plaintiff said it raised the concerns of the indigenous companies with Tullow in a petition in June 2022 highlighting that any award of contract reserved for indigenous Ghanaian companies to foreign joint venture companies after February 17, 2022, would be in violation of the existing laws regulating the award of petroleum contracts reserved for localThebusinesses.plaintiffsaid the action of the defendant if not restrained by the court would lead to the mass unemployment of skilled Ghanaians in the upstream oil industry.Theplaintiff therefore, prayed for a declaration that the award of petroleum contracts for the provision of goods and services exclusively reserved for indigenous Ghanaian companies under Petroleum (Local Content and Local Participation Regulations) LI 2204 (as
“You can use the SRC monies you collect to do something more significant like putting up for instance a factory in the name of the SRC. Such a thing will ensure you have left a good legacy. You should not always wait for the school authorities to give you money. When you set up a factory, you get a multiplier effect which you can use to take care of needy students”, he underscored.
Prof.John Kwaku Mensah Mawutor, the Dean of UPSA Graduate School and incoming Pro Vice-Chancellor, encouraged the incoming executives to make the most of the student levies collected by being entrepreneurial and leaving a legacy.vv
They are seeking a perpetual injunction restraining the defendant, whether personally, through their agents, servants or privies or any person acting under their express or implied instruction from awarding any Petroleum contract in contravention of Petroleum (Local Content and Local Participation Regulations) LI 2204 (as amended) by Petroleum (Local Content and Local Participation) (Amendment) Regulations 2021 (LI 2435) and other laws regulating the awards of petroleum contracts in Ghana.
GNA
GOGSPA sues Tullow Ghana over alleged Local Content Violation
An Accra High Court (Commercial Division) on September 8, 2022, adjourned the hearing of a motion on notice for an interlocutory injunction to restrain Tullow Ghana Limited from re-awarding any petroleum contract being executed by indigenous Ghanaian companies to foreign joint venture companies.Themotion was brought by the Ghana Oil and Gas Service Providers Association (GOGSPA) pursuant to a writ of summons issued against Tullow Ghana Limited in suit number CM/ BDC/0692/22.GOGSPAsaid it was seeking the order of the court to restrain Tullow Ghana Limited, its agents, assigns and any person acting under their instructions from violating the Local Content and Local Participation, (Amendment) Regulations 2021 (LI 2435) in the award of petroleum contracts in Ghana pending the determination of the suit.The plaintiff said the decision to sue followed many complaints that services reserved for
Nana Okogyedom Barimah NtimBarimah, Kwahu-Tafo Akwatufo hene, on his part, stated that the need to use new ideas and technology to improve human livelihood cannot be over emphasized.“Theneed to ensure economic progress and social development will be realised through scientific research and innovation. Universities with their postgraduate students are supposed to be the leaders of research”, he said.
For him, a country can move forward on the path of development only when information and knowledge is created for its next generation and adequate resources of research are available at the level of high education.NanaOkogyedom Barimah Ntim-Barimah was also awarded with a citation from the student body of UPSA for his diverse role
plaintiff against the defendant,” the plaintiff said.
“That is why I am saying that, we want to change this country because your GDP, interest rate and debt portfolio are all economic principles that will not be applicable if we are patriotic and work hard. Export should exceed import; we get more foreign currency for our cedi to be stabilized, if we are not disciplined, honest, all these will come to zero. It is not only politics but your own, if you keep these principles, wherever you go, you will excel”, he posited.
you are the future of our country and we have to share experiences withMr.Agyapong,you.” who is also the Member of Parliament for Assin Central, added that if the country wants to move forward, all the three pillars will be applicable.
MONDAY, SEPTEMBER 12, 2022 | FEATURE 3
For further information on the event, sponsorship and advertising, you can contact Charles Opoku Mensah or Afua Tekyi-Mills on 0244877583 or 0277686014 send an email to charles.mensah@gipc.gov.gh or afua.tekyi-mills@gipc.gov.gh.Joinusontheroad to recognition by registering today!
MONDAY, SEPTEMBER 12, 20224 | NEWS • Size • Growth • RequirementsProfitability for Participation are:Businesses who wish to be considered for these prestigious awards are requested to fill the application form via this link Accra.RangoonInvestmentChiefdocuments,applicationpromptstLe5Xg6Sihhttps://forms.office.com/r/andfollowtheorphysicallysubmityourwiththefollowingaddressedtotheExecutiveOfficer,GhanaPromotionCentre,Lane,Cantonments•Auditedfinancialsfor2019,2020and2021•2021TaxClearanceCertificate•LogoofCompany•PhotoofCEO•PhotoofCSRfootprints•LinkstoCSRReportage
• One page company profile
• Short write up on why your CEO is the best CEO (300 words)
The deadline for submission is 23rd September 2022.
“Ghana Club 100, Celebrating Ghana’s Business Leaders”.
GIPC opens nominations for Club 100 Awards Continued from page 1 Tel: +233 (0)302 21 6000www.cbg.com.ghcbgbankltd CBG Controller Loan • Eric Oppong-Johnson - 0596912267 • Samuel Asewe - 0556493505 • Get up to GH¢250,000 • Tenor - 72 Months • Fix rate throughout the loan tenor • No penalty for early pay off • Buy off other loans FEATURES • Mandate Pin • Competitive interest rate • Mandate Number • Settlement quotation (applicable to pay off) REQUIREMENTS (CONTROLLER)
EcoFlow to introduce home backup energy solutions to address power needs in Ghana
The ecosystem is the first integrated solution for power generation, storage, and usage EcoFlow, a portable power, and renewable energy solutions company will soon introduce its industry-defining portable power stations, smart solar technology, and the world’s first portable home battery with an expandable ecosystem in key West African markets.Since 2017, EcoFlow has provided portable power stations, home backup power, and ecofriendly off-grid solutions in over 100 markets including the US, Japan, China, Australia, and Europe to reinvent the way the world accesses energy.
EcoFlow was founded with a mission to empower people and communities through portable, clean, reliable power for lasting impact and dethrone the traditional gas generators throughEcoFlow’sinnovation.rangeof renewable portable power stations offer reliable, quiet, and clean power as an alternative to traditional, outdated sources. The first products from EcoFlow’s powerful lineups to be revealed in Ghana will consist of:
In July 2021, the EcoFlow Smart Home ecosystem broke the Kickstarter record for the most funded tech project on the crowdfunding platform before being named as one of TIME Magazine’s 100 best inventions of 2021.“Because dumsor and power insecurities have become a
RIVER Pro
The RIVER Pro is a flexible and portable device with a quiet operation that does not run on gasoline or fuel. Efficiency
is maximized as power can be stored and consumed when needed, an AC output of 600W, a base capacity of 720Wh expandable to 1440Wh with an extra battery, and fast charging powered by EcoFlow’s X-Stream technology.Noemission of toxic fumes makes the RIVER Pro safe to use both indoors and outdoors with a price 30% less than that of regular gasoline-powered inverter generators.
DELTA DELTA has been EcoFlow’s best-seller since it was launched, featuring a first-of-its-kind twoway inversion technology that converts AC to DC power and vice versa with a 6x AC Outlet. DELTA charges safely from 0-80% in under an hour with the X-Stream Fast Charge.
DELTA Max 1600+400W
Solar Panel
2x 400W Max Solar charging speeds and during cold or cloudy days, the Smart Maximum Power Point Tracking (MPPT) algorithm, automatically detects the voltage and current in real-time to provide optimum solar generation throughout the day. The DELTA Max can be monitored, controlled, and managed using the free EcoFlow app via Bluetooth or Wi-Fi connection.“Ourgreen technology aims to relieve users from power insecurities in Africa and around the world. At EcoFlow, we believe that access to power is a fundamental right for every human being and our vision is to put power in people’s hands,” added Joy EcoFlowWu.was developed by a multidisciplinary group of engineers who combined years of experience and expertise in the battery industry to develop new innovations in portable power solutions.
The DELTA Max 1600+400W Solar Panel bundle is portable, self-supporting, and has high efficiency. It connects up to
MONDAY, SEPTEMBER 12, 2022 | NEWS 5
critical issue for residents and businesses in Ghana, we are thrilled to introduce EcoFlow’s thoughtfully designed, smart, and powerful energy solutions that effectively address the power needs of individuals and households around the world to the Ghanaian market,” said Joy Wu, Regional Leader at EcoFlow.
The group also engaged in a blood donation exercise for the International Maritime Hospital which they believe will go a long way to help save lives.
GPHA national service personnel give back to community
At the end of service dinner party, the best performing service personnel were awarded for their outstanding service during their stay.
As part of the NASPA week celebrations to cap of their stay at GPHA, the National Service Personal have made some contributions that are expected to make a lasting impact on the community.
provision of ten wall fans, six cardiac tables, two patient trolleys, one-wheel chair, five dustbins, food and other essentialAccordingitems.to the President of the GPHA National Service Personnel, Bryan Ebenezer Sarpong, even though it took the group late nights to oversee to the completion of this refurbishment, they were keen to see it come to fruition.Theybelieve their widow’s mite will encourage other young people to support key institutions in the society no matter how small.
MONDAY, SEPTEMBER 12, 2022| NEWS6
In total, 150 influential business executives, entrepreneurs and political leaders from the region attended the event to find out more about how they could best partner the region’s transformational development in job creation, tourism and business investment opportunities.
Central Regional Minister, Mrs. Justina Marigold Assan was named
The Central Region Homecoming Business and Investment Gala Dinner 2022 marks a new high point in tourism, business and investment relations between the people of central region and diaspora, celebrating unity and resilience as a region in order to foster sustainable development in the Central region.
The Director of Port, Sandra Opoku was full of praise for the service personnel, particularly for the group that served at the Reefer Terminal for delivering an impressive thesis on their observations of operations at the terminal.
“Our trolleys had been in poor state until these came making it difficult to convey patients to the theatre, and patients could fall if we do not take
Fifteen top entrepreneurs and corporate executives from Central Region have been honoured at the maiden edition of the Central Region Homecoming Business and Investment Gala Dinner and Awards 2022.Itwas organized by Entrepreneurs Foundation of Ghana, in collaboration with the Ministry of Tourism, Arts and Culture, Oguaa Traditional Council, Central Regional Coordinating Council at the plush Ridge Royal Hotel in Cape Coast to climax the annual Fetu Afahye 2022 festival celebration.
The Ghana Ports and Harbours Authority (GPHA), takes it upon itself to absorb as many National Service Personnel as it can, to impart unto them the necessary fundamental skills that will prepare them for the job market and life as a whole.
This includes the refurbishment of the female surgical ward at the Tema General Hospital. The refurbishment comprised fixing of the ward’s leaking roof, painting of the ward,
Kweku Ricketts Hagan, Member of Parliament for Cape Coast South Constituency and Mr. Kingsley AgyeiBoahene, Chief Director of Central Regional Coordinating Council.
15 entrepreneurs and corporate executives from Central Region honoured
The Senior Nursing Officer in charge of the female surgical ward at the hospital, Cynthia Kwansah indicated that these donations have come in timely and will inject some significant level of comfort to the patients on admission.
The 2021/2022 National Service Personnel as part of their celebrations held a sports competition, a fundraising car wash event, a boat cruise and a dinner party.
Others were: Mr. Thomas Ayensah-Chief Executive- Cape Coast Phamacy, Outstanding Central Region Pharmaceutical Entrepreneur of the Decade Award; Mr Frank Hutchful (Oguaa Akoto) –Chief Executive OfficerHutchland City, Outstanding Central Region Tourism and Hospitality Entrepreneur of the Decade Award; Mr Robert Kinsford Kutin Jnr – Chief Executive Officer, Allship Logistics Ltd, Outstanding Central Region Freight Forwarding Entrepreneur of the Decade Award; Alhaji Habibu Ibrahim,Chief Executive Officer, Alhaji Habibu Ibrahim Enterprise, Outstanding Central Region Oil & Gas Entrepreneur of the Decade Award; and Mr John William Appiah, Chief Executive –Legna Construction Works Ltd, Outstanding Central Region Building Construction Entrepreneur of the Decade Award COA Mixture was adjudged as the Outstanding Central Region Product of the Year Award 2021.
care. This among the other donations will go a long way to make things easier here,” she said.
Last year, GPHA took up 340 graduates from the various tertiary institutions in the country to undertake their national service in the various departments of the organisation.Ayearon, after learning and participating in the port and maritime industry, one of Ghana’s vibrant sectors, the 2021/2022-year group are leaving to usher in a new batch of national service personnel.
It undoubtedly served as a significant platform for networking and job creation opportunity for the youth, with the overall aim of building peace and prosperity in the region.Aspart of the celebration, fifteen entrepreneurs and corporate executives were presented certificates of honour in recognition of their immense contribution in the socio-economic development of Ghana.Nana Sam Brew Butler, Founder and Chairman of Cenpower Generation Company Ltd was recognised with Outstanding Central Region Entrepreneur of the Decade Award whilst Prof. Samuel Ato Duncan, Founder and CEO of COA Research and Manufacturing Company Limited and President-General of the Center of Awareness Global Peace Mission was named Outstanding Central Region Industrialist of the YearOther2021.awardees included Yoofi Grant, Chief Executive Officer of the Ghana Investment Promotion Center, Outstanding Central Region Business and Investment Personality of the Decade; Dr. James Ato OrleansLindsay – Executive Chairman-JL Holdings, Outstanding Central Region Personality of the Decade and Dr. Ekwow Spio-Garbrah—Chairman of the African Business Center for Developing Education, Outstanding Central Region Public Service Personality of the Decade Award.
Outstanding Central Region Woman Public Officer of the Year Award 2021; Nana Pokoo Aikins 1, Ngumhene of Kakumdo Traditional Area and Chief Executive of PKA Star Investments Company Ltd, who also doubles as the Central Region Chairman of Ghana National Chamber of Commerce and Industry was honoured with the Outstanding Central Region Building Materials Entrepreneur of the Decade Award.
On the theme: ‘Promoting Tourism, business and investment development in Central Region’ and was graced by Osabarimba Kwesi Atta II, Omanhene of Oguaa Traditional Council, Mr. Yofi Grant, CEO of Ghana Investment Promotion Council,
The Money Hub is a 30-minute show on Happy FM which discusses financial literacy and wealth creation in a simple and easy-to-understand fashion for most Ghanaians irrespective of one’s educational and social
According to Mr. Asante, creativity and innovation play a major part in this world and in our day-to-day activities. He explained that to improve an
urged leaders at the workplace to ensure that such reward and motivation processes are transparent and fair in order to be attractive to all staff. Most importantly, such schemes must be well managed to ensure that staff who are on the lower rungs will see that as a motivation to improve their performance, and not a demotivation to throw up their hands in despair.
and traits. He encouraged the accommodation of diversity and mentioned that some would prefer to work on their own but each one must learn to work with people in an environment in order to achieve a common goal.
MONDAY, SEPTEMBER 12, 2022 | NEWS 7
existing product or service, one must first be very conversant with the core product functions and the exact value it delivers, before setting out to try to improve on them. He cited the example of new innovations and how technology has changed the world as a whole. These include how big brands like Kodak and Nokia disappeared because they failed to embrace innovations; to add more features to their respective products and to change to adapt to changing consumer needs and preferences. He indicated that innovation is not needed all the time for every product or service, you just need to keep what you have and make little tweaks to it as in the case of the popular ball point pen brand, Bic. “One must have a framework and a systematic process to track their own innovation process. With the advent of COVID-19, most banks for example, resorted to accelerating the deployment of their online platforms which were made accessible to their customers. Digital platforms therefore made banking easier and convenient to customers and they prevented the need for physical presence in banking halls,” he added.
The Managing Director of FBNBank Ghana, Mr. Victor Yaw Asante, has stated that every organization needs executives with effective leadership skills in order to build a winning team.
Mr. Asante who was speaking on the Money Hub Show on Happy 98.9 FM said, “every business owner or leader certainly has a plan and vision to achieve their goals and objectives. However, it would take a team with the required skills to achieve those goals. This is because at the workplace, there are people who come from all walks of life; some need a coach to guide them on the job whiles others do not need any hand holding, just clear direction and they are able to deliver on their own. Everyone needs some training no matter their background or skillset in order to improve on what they already have. In addition, it is necessary that people are placed where they can function better because of their skillset, attitude, training and personality. People must be allowed to work with their areas of strength. All these require leadership skills to unravel.”
On the issue of motivation and reward, he stressed the need for employees who come up with innovative ideas to be rewarded and encouraged to introduce more ideas so others can tap into them. He further stated that employees must be rewarded for their contribution and hard work and there must be some differentiation for hard work or high performance such that a
Effective leadership skills are key for building a winning team – FBNBank MD
Mr. Asante also spoke about how the workplace always has people with different personalities
But it is the Durban and uMhlanga regions that registered growth in tourist numbers more than anywhere else in South Africa. With international travel disallowed during the height of the COVID-19 pandemic, the region benefitted from pent-up demand from domestic leisure tourists.“Theaccessibility of this region from Gauteng, the favourable climate, quality tourist amenities and reputation for fun and relaxation bolstered its appeal. The city still boasts the bestperforming hospitality market despite the tremendous health, social, climate and economic crises it has faced over the past two years,” added Purnell. uMhlanga has proven especially popular during H1 2022, achieving an average occupancy of 63.9%. This is the highest nodal performance in the country for the period, and is closely followed by the Drakensberg and Midlands region (63.7%). Testament to the strength of the uMhlanga market segment is the recent opening of the five-star Radisson Blu (206 keys). The Hilton Garden Inn uMhlanga Arch (203 keys) is another upscale property that opened in this region recently (December 2020) in spite of the pandemic.Butthings are not as rosy in Johannesburg, as the hospitality sector continues to grapple with poor corporate and leisure travel demand, especially in relation to the international market. Sandton, which historically relied on international (corporate and airlines in particular) travel and domestic and international leisure demand, was one of the worst-performing micro-markets through most of the pandemic.
change given the reliance of this market on international visitors. Notwithstanding, neither arrivals numbers nor hotel performance metrics are at the same level reached before the pandemic.
AsIndustrialinmany regions across South Africa, there is good demand for logistics and distribution-related industrial property in Cape Town. Borne from technological advances, booming e-commerce and global supply chain disruption, there is a countrywide distinct shortage of prime logistics inventory. The consumer is an underlying role player across the various demand drivers of industrial property, supporting the retail and manufacturing sectors that underpin the industrial sector.
Despite the challenging operating environment, there have been three hotel openings recorded in Johannesburg over the past year. This includes the Radisson Red Rosebank (222 keys), voco The Bank Hotel (131 keys), and the Hyatt House Rosebank (80 suites). The first two hotels mentioned will compete directly with the Sandton hotel market, as the primary target market in Rosebank is also the corporate traveller. A Park Hyatt hotel (30 keys) is also planned to open in early 2023. This additional supply has increased competition among existing hotels; however, investment by large brands such as Radisson and Hyatt bodes well in terms of sentiment toward the market going forward.
Mieke Purnell, Research Manager at JLL, said: “Most demand has originated from the business process outsourcing (BPO) sector, resulting in few fitfor-purpose premises remaining. Demand in eThekwini is almost solely directed toward these nodes, and the Durban CBD is thus experiencing historically high vacancies. P-grade vacancies have declined by 45% in H1 2022, and B-grade vacancies have risen by 28%. Approximately 25 000 m² of quality premises have been let to BPOs over the past six months, an exceptional uptake considering the inactivity within the commercial property market over the past two years.”
The report notes that hotel occupancy rates virtually doubled across all property types in Cape Town, comparing H1 2022 to the same period in 2021. The five-star market recovered particularly well, recording growth of over 120%. Occupancy over this period averaged 51%, which is approximately 72% of the rate achieved between January and May 2019. Despite the recovery underway, the upper end of the market in Cape Town still has some way to go.
Mixed bag of fortunes for SA property market
MONDAY, SEPTEMBER 12, 20228 | FEATURE
WithinOffice Cape Town’s office sector, semi-gration, better governance, and associated lifestyle factors continue to drive performance, albeit performing only marginally better than alternative regions in Gauteng or KwaZulu-Natal. The metropole is markedly smaller than Johannesburg or Pretoria, and therefore the influx of affluent and skilled migrants has the potential to bolster economic recovery for the city. Notwithstanding, the local economy still lacks the stimulus provided by the tourism sector that is yet to re-emerge in any meaningful form. Businesses are also not migrating to the same extent as individuals, meaning local purchasing power may be ticking up, but office demand not necessarilyAccordingso.to the report, office development is currently at lower than conventional levels, with primarily occupier-driven development occurring. A feature that differentiates Cape Town’s office market from that of Johannesburg is that speculative development has historically been relatively low. This placed the city in a better position to handle the economic shock that was introduced by the COVID-19 pandemic and decimated office demand fundamentals. Moreover, the traditional central business district (CBD) in Cape Town has avoided the urban degradation associated with the likes of Johannesburg, Durban and Pretoria, for eThekwini’sexample. commercial market, in turn, shifted out of the traditional CBD toward uMhlanga and La Lucia’s commercial districts a few years ago and has gone from strength to strength since, barring the impact of the pandemic. Greater land availability and the degradation of the historic CBD led to this shift, and hence this node now offers the bulk of quality, contemporary stock, which is where the greatest demand is concentrated. The past six months have seen considerable
Both average daily rate (ADR) and occupancy metrics recovered in H1 2022, although not yet to levels achieved prior to the pandemic. Positive movement within the business and international travel from key African source markets are thought to be the primary sources of these gains.
In Durban, over and above the impact of the COVID-19 pandemic, the industrial market has faced externalities such as severe weather events and civil unrest that resulted in a shift in the market. Being a port city, there is strong demand for large-scale industrial premises originating from the logistics sector, both from an occupier and an investment perspective. However, the severe flooding and civil riots that took place in the greater eThekwini region over the past year have markedly impacted industrialAccordingsupply.to the report, Johannesburg’s supply pipeline is impressive, but it is limited to occupier-driven development, as current construction costs may result in prohibitively high rentals on completion. Moreover, the pace of construction has to date been insufficient to alleviate supply shortages within the logistics
In 2021, Cape Town’s residential market was valued at R1.229 trillion (CAHF, 2022). Per the Centre for Affordable Housing Finance’s Cape Town Housing Market Report 2021, 43% of all stock is categorised as ‘luxury’ –valued at over R1 200 000. The entry-level (<R300 000) segment accounts for 16% of the market, and affordable housing (R300 000 – R600 000) comprises a further 18%. Residential sales
The first half of 2022 has seen mixed fortunes for the South African property market. This is according to a new report by JLL, a leading professional services firm that specialises in real estate and investment management. The Q2 report, which covers Cape Town, Durban and Johannesburg, shows that the office, industrial, retail, hospitality, and residential sectors are all growing at different rates.
TheHospitalitysector.firsthalf of 2022 saw a strong recovery of international tourist arrivals to the Western Cape and Cape Town – a welcome
TheResidentialresidential market in Cape Town has favoured buyers for several years now, with excess stock available for sale, and prices decreasing. Conditions worsened through the pandemic when buying activity moderated, particularly from the foreign market that supports some of the higher value bands. As the pandemic progressed, there was increased interest in the local housing market stemming from semigrants to the city.
take-up of vacant office space in the uMhlanga commercial node.
“Occupancy in Sandton’s luxury (five star) market recorded a 110% increase year-on-year in the first half of 2022, averaging 49.7%. This sub-sector also saw annual ADR growth of 22% comparing the first six months of 2021 and 2022. The relative outperformance of this market sector is encouraging, suggesting that historical international and business travel trends may start resuming as before,” Purnell added.
The “Mall of the West” that forms part of the mega Ntshongweni Urban Development is planned to offer around 85 000 m² of
eThekwini benefits from several ‘destination’ retail centres that are
additional retail accommodation. The development will also likely include smaller convenience retail outlets. Oceans Mall (±33 000 m²), under construction in uMhlanga, is expected to be completed by the end of this year.
From a supply perspective, there has been little retail development over the past two years. The superior performance of smaller-format centres such as community, neighbourhood and convenience centres since even before the pandemic, alongside solid performance by national retail (supermarket) chains, has seen the likes of Redefine’s Kwena Square (10 004 m²) come to the market in H1 even as consumer confidence and economic growth nears all-time lows.
In Johannesburg, the retail property market proved one of the stronger property sectors coming out of the pandemic, despite the major headwinds faced. Recovery within this sector is still underway as footfall and trading densities improve but are yet to reach pre-pandemic levels, and operating conditions are stabilising. Rental collections have essentially normalised once more, and the negative rental reversion trend appears to be moderating as well.
The five biggest retail centres in Durban and surrounds provide over 520 000 m² of quality retail space. These centres are Gateway Theatre of Shopping (186 526 m²), The Pavilion (122 768 m²), Galleria (87 564 m²), Ballito Junction (82 000 m²), and Chatsworth Centre (41 558 m²).
proving popular in the current climate. Throughout most of the pandemic, neighbourhood and convenience centres were preferred as fewer people travelled far from home, but as lockdown restrictions have eased, regional centres have reported a robust recovery in footfall.
MONDAY, SEPTEMBER 12, 2022 | FEATURE 9
Continued from page 8
It’s clearly evident that the property market is bouncing back and will soon be on the growth trajectory if no further disruptions occur.
activity in Cape Town slowed in the first half of 2022, although to a lesser extent than the moderation recorded in Johannesburg and Durban.InJohannesburg, the recent uptick in semigration out of Gauteng to coastal regions in the Western Cape has been very topical in the context of Johannesburg’s residential market. While this is believed to have softened the market over the past couple of years and remains a risk factor overall, the impact is limited mainly to the higher value bands of the market, as Gauteng’s net migration rate remains positive.Noteworthy residential developments underway in Johannesburg include the Orlando Towers Estates development that was recently announced, the Barlow Park mixed-use estate, and the Riverwoods Office Park redevelopment. The former comprises a lifestyle estate near the iconic Orlando Towers in Soweto. Orlando Towers Estates will aim to deliver 2 800 residential units over the fiveyear development timeline, arranged among complementary amenities including educational and recreational amenities.
TheRetail report notes that eThekwini’s retail market has suffered more than most since the onset of the pandemic in 2020. As in other regions, retail activity picked up in line with the easing of lockdown restrictions, but the unrest and riots experienced in July 2021 placed the sector in a severely negative position. One year on, most affected retail centres have reopened, but independent retailers are believed to still be struggling.
“From a sales perspective, a rising middle class, coupled with a lower interest rate environment, has created an influx of interest in homeownership across the lower and middle housing value bands, bolstered by the pandemicinduced changes in housing needs. For obvious reasons, sales activity within Johannesburg’s residential market moderated during the pandemic. Low interest rates resulted in a decent recovery in 2021 with respect to the number of transactions recorded, and the average sales price also improved, despite asking prices falling somewhat. The first half of 2022 has seen further weakening of achieved prices and activity levels, with the stagnation attributed to lending rates rising once more, weak consumer confidence, and the rising cost of living. This trend benefits the rental market, as purchase decisions are postponed,” added Purnell.
MONDAY, SEPTEMBER 12, 202210 | FEATURE
A look at the company’s activities would send a clear message – BetKing Cares. Across all markets, BetKing, unlike any other business, is known as a company that provides entertainment for individuals but is also known for empowerment, transforming lives, and the positive impact the brand brings to individuals and communities.
As seen in recent years, there is a unique opportunity and talent in the country to grow Ghana into a world-class sports ecosystem and BetKing hopes to play a major role in this journey – with a more dedicated focus on youth.
Picking up on trends popular in Europe and North America, and with Africa’s love for sports, it is fast becoming an online gaming continent. With accessibility increasing, the question arises: what’s available and which companies are trusted to pave the way for wins for the users?
So, what then, has accounted for BetKing’s success across Africa, and to be the platform of choice?
BetKing’s Entry
The company’s goal is to change the face of sports betting in Africa and in doing so, BetKing remains committed to initiatives that improve the conditions of the societies they operate. This has come to life through various initiatives that cut across – entrepreneurship and employment, sports development, and environmental sustainability, to mention a few.
The growth of Blue Bloods in Africa
Globally, internet adoption has steadily increased over the years, and Africa has not been left out. Quite the opposite. The growing young population of the continent and uptake of internet and smartphone technology have driven the growth of various industries.According to the Global System for Mobile Communications Association (GMSA), Africa will have 120 million new mobile subscribers by 2023, reaching new heights of a total of 615 million, corresponding to 50 percent of the region’s population.
Currently serving millions of customers across Africa, BetKing fast has become a favourite among punters across Africa - despite having access to a plethora of other bookmakers.
This digital movement is opening up new possibilities that are giving new forms of entertainment a chance to thrive, one of which is online sports betting. It is fair to say that in the past ten years, sports betting has emerged all over Africa, and is expected to grow with the digital economy of the world.
MONDAY, SEPTEMBER 12, 2022 11| FEATURE
BetKing’s agent network has enabled thousands of individuals to own their businesses and become their own boss. The enterprise has enabled the youth amongst these fans to view sports betting as a business rather than just a game. This opportunity creates direct & indirect employment in communities and the ripple effect leaves a positive impact on the economy.
Transforming lives through sports entertainment
the brand to reiterate its plans for the Ghanaian market.
No matter their culture, language, political persuasion, social status, or race, people across the African continent have one thing in common. The shared love for sports – especially Football. Combine that with a population of 1.3billion people, of which around 70percent are youths, and you get a highly desirable market for sports betting operators.
communities and bringing excellent responsible gaming & compliance standards stays BetKing’s collective commitment to sports fans across Ghana and beyond – and helps ensure sports betting continues to be an exciting, engaging, entertaining, but most of all, impactful if not a life-changing experience.
>>>The writer is Managing Director for Kingmakers
The agent network has proven invaluable for the youths involved and most individuals have gone further to testify that the business has a positive impact on their standard of living, and soci0economic well-being. Aside from giving thousands of youths the chance to work for themselves, the company invests in ability building for its network of agents.
Youth Community Centre based in Nairobi’s Kawangware slums.
The Head of Policy for the Sports Ministry, Mohammed Sannie Adams; the Commissioner of the Gaming Commission of Ghana, Peter Mireku; former Black Stars – Asamoah Gyan, John Paintsil and Samuel Kaffour; the media, and key players from the sports industry were all present at the event, which was held at MultiChoice Ghana Limited.
BetKing’s agenda is not for Nigeria, Kenya and Ethiopia alone. BetKing is dedicated to changing the face of sports betting in the whole of Africa – including Ghana. On August 6, 2022, BetKing officially launched in Ghana with a high-level stakeholder event that presented an opportunity for
In February 2018, BetKing launched in Africa, with its first office in Lagos, Nigeria with a solid mission – to create an efficient system that enables the quests of its Kings and Kingmakers by providing the right technology, radical innovation, and uncompromising service to all customers while at the same time drive as much impact within communities as possible.
By Gossy UKANWOKE
several sports and virtual games has powered its rapid growth in Africa in just four years.
In 2020, the Ethiopian Premier League heralded a new era in Ethiopian football with the backing of BetKing and MultiChoice. The investment and partnership aimed to provide international exposure to the league by giving Ethiopian football players a platform through which to put Ethiopia on the world football map. In Kenya, BetKing invested in the renovation of Dagoretti
Since different markets, regions, and communities have different needs as opposed to a one size fits all approach, the company’s strategy is to gain insights into communities in Ghana to understand what they need and how BetKing can support them. BetKing aims to reach underserved communities to guarantee inclusion for all. As part of the company’s plans, BetKing aims to develop entertainment centres while catering to their needs and overall ensure value is delivered in an impactful and
In Nigeria, the company rolled out a ‘Month of Good’ initiative designed to positively impact communities. Through collaborations with two wellknown non-governmental organizations (NGOs) - Market Doctors and the African CleanUp Initiative (ACI), the campaign supported medical outreach impacting hundreds of people in significant cities like Lagos, Ibadan, Abuja, Benin, Enugu, Port Harcourt, and Anambra, as well as beachfront and drainage clean-up initiatives in some of these cities.
Under the company’s CSR initiative BetKing Cares, which serves as the cornerstone of the organization’s commitment to positively affecting lives both within and outside of the communities it operates in over the past four years, BetKing has made significant contributions to the socio-economic transformation of Nigeria, Kenya and Ethiopia.
Positively affecting
BetKing believes everyone is a king and this is reflected in everything that makes up the brand; from the colours that symbolize royalty and wealth, to its excellent service delivery that is specially designed for Kings and most importantly, an objective to grow the Kingdom - one King at a time.Within four years of operating in Africa, the company has spread its tentacles to other countries in Africa including Ethiopia, Kenya, and just recently, Ghana.
The Making of ‘Kings’ and ‘Kingmakers’
A recent collaboration between BetKing and DSTV would offer new agents complimentary DSTV equipment and subscription which reduces setup costs and drives customer engagement. BetKing’s unique approach to customer experience and CSR efforts combined with its offer of the biggest odds-on major leagues with exciting markets across
This is happening despite the US recording its highest annual inflation rate in four decades and its worst trade balance since the global financial crisis. What is going on, and is the dollar set to plummet?While acknowledging that exchange rates are extremely difficult to explain, much less predict, four major factors seem to be influencing the movements of the world’s major currencies. Most importantly, the Fed has begun hiking interest rates, and with the US economy seemingly nowhere near a true recession, there is still room for it to tighten policyDespitefurther.equally high inflation in Europe, the European Central Bank is being more cautious. This is partly because the economic outlook for the eurozone is more fragile. The ECB is worried about Italy’s high debt levels, but also believes that current rates of energy-price inflation will not continue. Japan, like China, has
Some would add that the US is a safer haven than Europe and Japan. That may be true, despite America being mired in a cold civil war that can have no end as long as former President Donald Trump is in the mix. Eurozone
Geopolitics is also a factor behind the dollar’s strength. The war in Ukraine presents a much more immediate risk to Europe than to the US, while China’s ominous saber-rattling toward Taiwan is a huge risk for everyone, but most of all to neighboring Japan. Recession or not, both Europe and Japan will have to restructure their defense capabilities significantly, with a concomitant rise in long-term military expenditures.
The fact that bigger emerging markets have so far largely withstood higher US interest rates and the stronger dollar has been something of a pleasant
The dollar’s current strength has profound implications for the global economy. A large share of world trade, perhaps half, is denominated in dollars – and for many countries, that applies to both imports and exports. As such, a rise in the dollar causes much of the world to cut back on imports, so much so that researchers have found a statistically significant negative impact on global trade.
In the near term, a buoyant dollar will affect America less severely than its trading partners, mainly because US trade is almost entirely invoiced in dollars. But a persistently stronger dollar will have a longer-term domestic impact, as the US will become a relatively more expensive place to produce. It won’t help foreign tourism, still sharply down from 2019.Might the dollar’s recent surge against other major currencies go into reverse? To be sure, some previous big run-ups in the dollar’s value, including in the mid-1980s and the early 2000s, were eventually followed by sharp declines. But, again, exchange rates are notoriously difficult to predict, even on a oneyear horizon. A further 15% fall in the euro and the yen against the US currency is entirely possible, particularly if geopolitical frictions take another turn for the worse. The only thing that can be said with certainty is that the period of extraordinarily quiescent major-currency exchange rates, beginning back in 2014, is now history.
A strong greenback risks having a particularly brutal effect on emerging markets and developing economies, because private firms and banks in these countries that borrow from foreign investors can do so pretty much only in dollars. And higher US interest rates tend to push up weaker borrowers’ interest rates disproportionately. In fact, the broad dollar index would have risen even more had many emerging-market central banks not proactively raised interest rates to stem downward pressure on national currencies. But such tightening of course weighs on their domestic economies.
MONDAY, SEPTEMBER 12, 202212 | FEATURE
By Kenneth Rogoff
The US dollar has been on a tear this summer. The Japanese yen and the euro have fallen to their lowest levels against the greenback in two decades; the euro, long worth more than one dollar, is now hovering close to parity. The US Federal Reserve’s broad trade-weighted dollar index has almost re-attained the peak it reached in March 2020 amid the panic triggered by the start of the COVID-19 pandemic. In fact, if one adjusts for inflation in the United States and its trading partners, it is already higher.
so far not experienced significant inflation. The Bank of Japan is unlikely to tighten policy anytime soon, and the People’s Bank of China cut rates in August.
integration, which promises to advance whenever there is a crisis, will be sorely tested if global real interest rates ever start rising. Inflation in Germany is on track to hit a 70-year high, but more aggressive ECB interest-rate hikes could cause spreads on Italian government debt to explode.
Then there is the ongoing economic slowdown in China, which affects Europe and Japan far more than America. The root causes of China’s decelerating growth – including zeroCOVID lockdowns, the legacy of overbuilding, a crackdown on the tech sector, and overcentralization of economic power – are issues I have been commenting on for some time, and I do not see a sharp, sustained turnaround.Finally,with energy prices still very high, the fact that the US is self-sufficient in energy while Europe and Japan are huge importers also benefits the dollar.
surprise. But how long they will continue to do so if the Fed pursues an aggressive tightening path remains to be seen, particularly if commodity prices simultaneously fall further (as my Harvard colleague Jeffrey Frankel has warned) and the US and Europe slide into recession, on top of the slowdown in China.
Will the dollar’s surge end in whiplash?
MONDAY, SEPTEMBER 12, 2022 13| NEWS
hosted multiple events to educate people in the region about the opportunities within the crypto space and how to make a living from them. Our education initiatives have been instrumental in deepening cryptocurrency adoption in Africa. Since the launch of the Binance Masterclass programmes, Binance has educated over 600,000 Africans on the fundamentals of cryptocurrencies, how to identify scams and safeguard their crypto journey.BNBChain
MONDAY, SEPTEMBER 12, 202214 | FEATURE
2. What informed the decision to diversify your offerings and from your perspective, how has it impacted Binance’s operations amidst the bearish stance on the market?
With a mission to increase the freedom of money globally, Binance continuously iterates and builds infrastructure and products that enhance the industry. When we launched Binance, we decided that it would be our unwavering commitment to users that would differentiate us in the market. As a result of that commitment, we constantly ensure our users have access to new technologies, ideas, and use cases.Our diverse offerings is one of the reasons our users across the world continue to use and love us. As such, even during bearish markets, Binance remains strong and continues to diversify its
Since 2017, the platform has significantly expanded its product lines and offers something for everyone. From Trust Wallet to CoinMarketCap, Binance NFT to Binance Earn, they cater to virtually any interest across the broad spectrum of what blockchain and crypto have to offer. The past year also saw the introduction of Auto-Invest, Binance Live, Learn and Earn, and many newer services. To mark such an iconic anniversary
3. Recent developments in the crypto market space have left some investors burned and others at the edge of their seats. How are you navigating this period?
Earn, and Binance Masterclass are integral to educating our users and helping them make more responsible, informed decisions.
Binance Academy, Learn and Earn and Binance Masterclass is a testament to Binance’s commitment to equipping crypto beginners with resources for lifelong financial and career development.InAfricafor example, we have
flourishing into an independent network
BNB Chain is a communitydriven, open-sourced and decentralized ecosystem. The support of its community of users, developers, validators and delegators is vital to its health.
BNB (Build N Build), is the native token that “fuels” transactions on BNB Chain. BNB also empowers users in the decentralized onchain governance of BNB Chain.
Another valuable achievement has been the development and the growth of BNB Chain. In the past year, BNB Chain has recorded over 2.4 billion transactions and hosted over 1200 projects. It is the most active layer-1 network, with a thriving life and ecosystem of its own.
1. What have been some of the most important achievements of Binance over the past five years?
User demand-driven expansion
BNB Chain’s mission is to build
portfolio - prioritizing users, ensuring safety and investing in the ecosystem.
4. What has been the impact of Binance’s education drive so far? Kindly share numbers, if available.
5. Kindly elaborate, in simple terms, on what the BNB Chain is?
continued on page 15
Over the past year, we have made great strides in engaging with governments and regulatory bodies across the globe. Within the past year alone, we’ve received regulatory approvals and registrations in Spain, France, Abu Dhabi, Dubai, Italy, and Bahrain & generally take a collaborative approach in working with all regulators across the world.
Binance@5 – half a decade of protecting users and supporting the global digital asset ecosystem
Over the past 5 years, Binance’s growth has been tremendous. Becoming the world’s largest crypto exchange shortly after our launch and sustaining it hasn’t been the smoothest ride but our commitment to users as well as maintaining high standards has been integral. Binance has become the world’s leading blockchain ecosystem and cryptocurrency infrastructure provider and has become the leader in one of the world’s fastest-moving industries. Since 2017, the team has grown over 200 times, and now there are Binancians from all over the globe.The growth and impact of our education initiatives have also been a major achievement. Binance Academy, Learn and
For us at Binance, our first focus is always to protect users and so, we’re focused on education, ensuring the highest standards of security and collaborations across the industry. The industry is still relatively nascent and I believe it will continue to grow stronger. Additionally, we will always inform our users that with any investment or asset, proper research needs to be done to understand the risks and benefits. Although some cryptocurrencies can be highly volatile, cryptocurrencies and their underlying blockchain technology can be utilised in almost every area of life and as such, many will continue to have utility.
People can only be confident in what they know and understand. As mentioned earlier, education is necessary to encourage a better understanding of crypto and help newbies/skeptics learn, understand and engage in the space. Additionally, we take active steps in ensuring that all bad actors are eliminated from the system as much as possible and also teach users how to avoid scams through the wider ecosystem.
Incubating and investing in the most promising blockchain and cryptoSinceprojects2018,Binance Labs has already invested in and incubated over 200 projects worldwide. And recently, Binance Labs closed a $500M investment fund to boost blockchain, Web3, and value-building technologies. The fund would allow Binance Labs to continue its successful run and invest in more promising projects.
8. Some high-profile incidents within the crypto space have not helped engender confidence in the hearts of skeptics. How do you seek to address this?
world without the internet is unfathomable. I believe that this will also be the case for cryptocurrencies as these digital currencies are transforming the way people interact, trade and have autonomy of their assets.
12. How much has been invested so far for Africabased projects and Ghana specifically?
The current market environment is an opportunity to build a base for the next industry growth phase. Web3 has a massive potential to transform lives. In the next five years, it will be paramount that Web3 begins to tackle tangible problems that Web2 users continue to face.
9. What major regulatory hurdles would you say persist and if there was a way to address them, what would be Binance’s approach?
Over the past year, there have been unprecedented levels of engagement in the industry with governments and regulatory bodies across the globe. This happens against the backdrop of a shifting policy environment and marks a substantial step forward toward creating greater regulatory certainty for the industry. It also highlights a broader acceptance of the fact that cryptocurrencies are here to stay, and that the industry is gaining steam toward mainstream adoption.
At present, many countries actually have differing perspectives on the future of crypto. Crypto and even the regulation of crypto are still relatively new concepts and so some hurdles include lack of clarity and limited understanding.
the infrastructure powering the world’s parallel virtual ecosystem, and BNB Chain’s commitment to the community is that it is open, multi-chain, for creators and inventors, permissionless, forever decentralized, and bigger than Binance. Holding BNB gives you the right to make your voice heard and is necessary to participate in BNB Chain’s decentralized onchain governance.
At Binance, we welcome this and take a collaborative approach in working with regulators and we take our compliance obligations very seriously. While I cannot mention what regulators we are currently in communication with, we are fully committed to a safe and secure experience for crypto users across all regions.
Africa-based projects.
10. The figure mentioned in relation to promise projects is quite impressive. Doyou mind sharing what some of these projects are and how it will enhance the ecosystem?
Fostering a regulationfocused mindset
To us, the overarching goal is driving blockchain adoption and so, the different components of the Binance ecosystem champion this mission. Binance Labs’ portfolio projects are enhancing the ecosystem in several ways and we think every way matters. We are committed to supporting fastexecuting, technical teams who are shaping the future of Web3.
11. What is the success rate of projects from the Binance Lab?
Many regulators across the world are now beginning to learn about crypto, understand its impact and look towards regulating in order to protect users while encouraging innovations.
Just like VCs across the world, Binance Labs sees both success and failure. However, we currently have 2100% of the return rate and pride ourselves on investing in solid projects with a long-term mission.
13. What developments should we expect from the wider blockchain and cryptocurrency ecosystem over the course of the next five years, and what is in the pipeline for Binance, in particular?
Across the wider ecosystem, I think we can expect continued conversations on regulation as well as more institutional adoption. We’ll also continue to see wider applications of blockchain being explored beyond exchanges. For Binance, we’ll generally remain focused on driving the mainstream adoption of crypto through investments in the ecosystem, infrastructure building and education. We will not just be focused on the growth of binance.com, we will also be focused on driving people to build on the blockchain.
7. In Ghana, financial sector regulators have remained publicly opposed to crypto. Has there been any form of engagement at the back end?
Binance Labs invests in global blockchain projects across various regions, sometimes with undisclosed amounts so I don’t have the figures currently for how much has been invested so far for
MONDAY, SEPTEMBER 12, 2022 15| FEATURE
6. What has been the performance of BNB Chain so far this year, with specific evaluation in Ghana?
Now, as regulators have shown an interest in the space, we believe regulatory collaboration with key stakeholders in the blockchain ecosystem is essential. Around the world, we are collaborating with regulators and industry players, hosting blockchain workshops for law enforcement personnel generally committed to supporting the development of regulatory frameworks as it will help give confidence to new users and new people wishing to innovate in this area.
Carine Dikambi is Director, Francophone Africa at Binance
Continued from page 14
Moving Beyond 5 Years: Future Plans
Let’s look at the internet, something which is more commonplace and trusted today - there was a time where the majority of the world wasn’t using the internet and there was minimal adoption as well as skeptics. Now, imagining a
BNB Chain was born in time for the DeFi revolution, as the public showed increased interest in alternative financial solutions and use cases powered by blockchain. Today, BNB has its own living, breathing ecosystem with over 183 million unique chain addresses. It has continued to grow due to the growing utility, affordable fees, supportive community and lots more.
MONDAY, SEPTEMBER 12, 202216 | NEWS
MONDAY, SEPTEMBER 12, 2022 17| FEATURE
The Cedi weakened against the Euro for the week. It traded at GH¢8.2563/€, compared with GH¢8.2280/€ at week open, reflecting w/w and YTD depreciations of 0.34% and 17.30% respectively. This compares with YTD appreciation of 1.49% a year ago.
Market capitalization inched up by 1.12% to close the week at GH¢64,487.10 million, from GH¢63,775.28 million at the close of the previous week. This reflects YTD decrease of 0.01%.
BoG Policy Rate 22.0%
Inflation for February, 2022 31.7%
Public Debt (billion GH¢) – Dec, 2021 393.4%
The Cedi gained marginally against the Canadian Dollar for the week. It opened at GH¢6.3259/C$ but closed at GH¢6.2903/C$, reflecting w/w gain and YTD depreciation of 0.57% and 24.62% respectively. This compares with YTD depreciation of 3.25% a year ago.
2022 Budget Deficit Target (%GDP) 6.6%
THE CURRENCY MARKET
MONDAY, SEPTEMBER 12, 202218 | MARKET REVIEW
WEEKLY MARKET REVIEW FOR WEEK ENDING - SEPTEMBER 2, 2022
End Period Inflation Target – 2022 28.5%
2022 Projected GDP Growth 3.7%
Average GDP Growth for 2021 3.3%
Debt to GDP Ratio – Dec, 2021 78.3%
Q3, 2021 GDP Growth 3.3%
STOCK MARKET REVIEW
MACROECONOMIC INDICATORS
Weekly Interbank Interest Rate 21.97%
The Ghana Stock Exchange closed higher for the week on the back of price gains by 5 counters. The GSE Composite Index (GSE CI) gained 32.51 points (+1.31%) to close at 2,508.99 points, reflecting year-to-date (YTD) loss of 10.05%. The GSE Financial Stocks Index (GSE FI) also gained 61.69 points (+3.06%) to close at 2,079.94 points, reflecting YTD loss of 3.34%.
Trading activity recorded a total of 3,682,515 shares valued at GH¢4,953,397.14 changing hands, compared with 1,944,061 shares, valued at GH¢1,679,680.70 in the preceding week.
MTN dominated both volume and value of trades for the week, accounting for 38.59% and 26.11% of total volume and value of shares traded respectively.
Budget Deficit (% GDP) – Dec, 2021 5.0%
The market ended the week with 5 advancers and 2 decliners as indicated on the table below.
The Cedi continued its downward trend against the USD for the week. It traded at GH¢8.2335/$, compared with GH¢8.2255$ at week open, reflecting w/w and YTD depreciations of 0.10% and 27.05% respectively. This compares with YTD depreciation of 1.64% a year ago.The Cedi appreciated against the GBP for the week. It traded at GH¢9.5365/£, compared with GH¢9.6897/£ at week open, reflecting w/w gain and YTD depreciation of 1.61% and 14.78% respectively. This compares with YTD depreciation of 3.04% a year ago.
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The 91-Day Bill settled at 29.05% p.a from 28.61% p.a. last week whilst the 182-Day Bill settled at 30.23% p.a from 29.94% p.a. last week. The 364-Day Treasury Bill settled at 30.02%, from 29.52% last week. The table and graph below highlight primary market yields at close of the week.
Crude Oil prices tumbled by 6% for the week, as new COVID-19 lockdown measures in China added to worries that high inflation and interest rate hikes are denting fuel demand. Brent futures traded at US$93.02 a barrel on Friday, compared to US$99.01 at week open. This reflects w/w loss and YTD gain of 6.05% and 19.59% respectively.Goldprices fell slightly, extending sharp declines from last week as strength in the dollar and growing uncertainty over hawkish U.S. monetary policy weighed on appetite for the yellow metal. Gold settled at US$1,722.60, from US$1,749.80 last week, reflecting w/w and YTD losses of 1.55% and 5.80% respectively.
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Government raised a sum of GH¢1,776.55 million for the week across the 91-Day, 182-Day and 364-Day Treasury Bills. This compared with GH¢1,826.21 million raised in the previous week.
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MONDAY, SEPTEMBER 12, 2022 19| MARKET REVIEW
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GOVERNMENT SECURITIES MARKET
Prices of Cocoa inched up for the week. The commodity traded at US$2,430.00 per tonne on Friday, from US$2,414.00 last week, reflecting w/w gain and YTD loss of 0.66% and 3.57% respectively.
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Through the AfCFTA, businesses in Ghana will be well-positioned to tap into other regional export destinations and can use regional markets as stepping stones to expand into overseas markets.
It will connect 1.3 billion people across the 55 African countries with a market size of US$3 trillion to create the largest trade bloc in the world. The AfCFTA will increase intra-Africa trade by 52 per cent, boost Africa’s exports by US$560 billion, and lift an estimated 30 million people out of extreme Therefore,poverty.being headquarters of such a trade treaty is not merely symbolic; it benefits the country’s economy and its business people
in several ways.
1. Elimination of intra-regional trade
2. Easier access to vast regional marketBusinesses in Ghana will get easier access to the vast continental market with over 1.3 billion people. Considering that AfCFTA will remove barriers against Ghanaian products, investors can produce in the country and export uninhibitedly across Africa.
will have access to cheaper raw materials from across Africa, to feed their factories, as well as access to regional and continental value chains.
6. Increased chance of securing investmentsTheAfCFTA, upon full implementation, will boost the chances of Ghanaian enterprises in securing international investments, as local firms will have more negotiating power thanks to access to the sizable African investmentoilextractiveencouragehelpprojected(industrialareofsignificantlyindustriesOpportunitiesHeightenedmarket.opportunitiesacrossseveralareexpectedtoincreaseasaresulttheAfCFTA.Amongthemthemanufacturingsectorandmachinery).ItisthattheAfCFTAwilldiversifyAfrica’stradeandamoveawayfromcommodities,suchasandminerals.Thetradepactwillalsoboostopportunitiesinthe
ThebarriersAfCFTA is expected to progressively eliminate tariffs, as well as other non-tariff constraints on intra-African trade, making it easier for businesses in Ghana to trade within the continent, and explore endless opportunities.
“Ghana is the commercial and trade center of Africa” as concisely put by the GeneralSecretary of the AfCFTA Secretariat, Wamkele Mene. The country is poised to remain at the pinnacle of the regional business climate, with the advent of the AfCFTA. Therefore, foreign investors seeking to explore the boundaryless opportunities, and reap the optimal benefits of the AfCFTA, should consider investing in Ghana.
With this move, Ghana becomes the headquarters of the game-changing project which will boost intra-African trade by establishing a mutually beneficial trade agreement among member states.The AfCFTA is projected to eliminate tariffs on 90 per cent of goods produced on the continent, as well as other non-tariff constraints, with the ultimate aim of aggregating African countries to create a single market.
With reduced tariffs, AfCFTA will make it more affordable for informal traders in the country to operate through formal channels, which offer greater security from harassment, robbery and confiscation of goods. It is also anticipated to provide simplified clearing procedure alongside reduced import duties for women traders.4.Access to cheaper raw materials
Why AfCFTA matters to
6 Potential benefits to businesses in Ghana
5. Opportunity to expand to other continental markets
businessesInJuly2019,GhanawasselectedaheadofsixothercountriestohosttheSecretariatoftheAfricanContinentalFreeTradeArea(AfCFTA).Thedecision,accordingtoregionalleaders,was‘fitting’,consideringGhana’ssignificancetocommerceinAfrica.
in the agro-processing sub-sector. Additionally, it will enhance the potential of the services industry across; business services, communication, financial, transport and tourism.
Explore these opportunities in Ghana, and with Ghana
WWW.BUSINESS24.COM.GH | NO. B24/317 | NEWS FOR BUSINESS LEADERS MONDAY, SEPTEMBER 12, 2022
As opined by the CEO of GIPC, Yofi Grant; “come to Ghana, and talk to us. We are the best place to invest in. Ghana is still the land of Opportunities, Openness and Optimism!”
PUBLISHED BY BUSINESS24 LTD. TEL: 030 296 5297, 030 296 5315. EDITOR: BENSON AFFUL editor@business24.com.gh | +233 545 516 133.
To this regard, Ghana’s government and its investment wing – Ghana Investment Promotion Centre (GIPC) – have intensified efforts to assist all businesses, both local and foreign, to set up, and operate seamlessly in the country.
3. Security for informal sector