Business24 Newspaper 6th November, 2020 by Business24 Online

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FRIDAY NOVEMBER 6, 2020

NO. B24 / 123 | NEWS FOR BUSINESS LEADERS

FRIDAY NOVEMBER 6, 2020

SEC considers investor protection fund in latest reform move

Aluworks says reenergised to return to profit path By Patrick Paintsil p_paintsil@hotmail.com

luworks, the indigenous aluminium products manufacturer, is banking on the Ghana International Trade Commission’s (GITC) order for the imposition of an additional duty of 36 percent on aluminium products that are dumped onto the domestic market to improve its fortunes. Cont’d on page 3

IMANI rates gov’t 56.8% in campaign promises fulfilled By Joshua Worlasi Amlanu

Daniel Ogbarmey Tetteh, Director General, SEC

By Joshua Worlasi Amlanu macjosh1922@gmail.com

he Securities and Exchange Commission (SEC) has begun a process to establish, on an ongoing basis, the level of interconnectedness within

the fund management sector, in a move to enable it decide on the creation of an investor protection fund and to help strengthen financial system stability. In a new directive issued this week, SEC asked fund managers to submit monthly

ECONOMIC INDICATORS EXCHANGE RATE (INT. RATE)

reports on funds being managed by them on behalf of clients in other parts of the financial system, including information on inflows, outflows, and returns on these funds.

BRENT CRUDE $/BARREL

POLICY RATE

14.5%

NATURAL GAS $/MILLION BTUS

GHANA REFERENCE RATE

15.12%

GOLD $/TROY OUNCE

OVERALL FISCAL DEFICIT

11.4% OF GDP

PROJECTED GDP GROWTH RATE AVERAGE PETROL & DIESEL PRICE:

0.9% GHC 5.13

olicy think tank IMANI Africa has scored the government 56.77 percent in the execution of its 510 manifesto promises made in 2016.

Cont’d on page 2 INTERNATIONAL MARKET

USD$1 =GHC 5.7027

macjosh1922@gmail.com

CORN $/BUSHEL COCOA $/METRIC TON COFFEE $/POUND:

Cont’d on page 3 Follow us online:

$41.26 2.622 1,922.57 329.50 $2,339.27 $109.65

facebook.com/business24gh twitter.com/business24gh linkedin.com/pg/business24gh instagram.com/business24gh

NEWS/EDITORIAL Editorial / News

FRIDAY NOVEMBER 14 6, 2020 MONDAY SEPTEMBER 2020

EDITORIAL Editorial

Pay before boarding order needs a rethink 1

Wash your hands 2

Cover your cough 3

SEC, get this done!

The new directive for all passengers to pay for their he banking sector reforms COVID-19 test online before their out International by the arrivalcarried at Kotoka regulator were thorough Airport has been meet with and massive. The central bank resentment by airlines and was determined to cover every passengers. blade of grass and rid the At a time when passengers are sector of its to inefficiencies still coming terms with and the weaknesses with every reform US$150 � GHC 900� mandatory itpayment implemented. for COVID-19 test upon Whileat KIA, the the inconvenience arrival new directive suffered by more depositors has generated debate. and customers of these Passengers travellingcollapsed to Ghana financial amidst the will frominstitutions Tuesday, September 15 reforms was troubling, the be required to makewith online benefit of hindsight, payments for the everything mandatory is C Obeginning V I D - 1 9 t eto s t make a t K osense toka International Airport to with confidence in theprior sector boarding of their flight, a returning to normalcy. dA i r enumber c t i v e of b y key F r banking ontier H e a l t h C a reports r e � t h e c prepared ompany industry contracted to carry out like the by reputable institutions antigen test at KIA--to all airlines KPMG, PwC point to the fact that on Friday has revealed. the central bank’s painstaking By th e beginning n e w d i r to e c tyield ive, reforms are “Passengers are required to show the necessary fruits. proof payment to sector airlineswell as a Withofthe banking

on its way to full recovery, one would expect that the securities

condition for boarding of flights to KIA.” market regulator, Securities T hExchange e n e w dCommission i re c t ive , h atos and however, been described by also make inroads particularly airlines as detrimental to the with its clean-up of fund renewed efforts to stimulate management companies last demand for air travel, given that year. cash payments remains the Admittedly,mode it hasof not been predominant payment aformean task for the regulator most Ghanaian travelers. although it is trying to push An airline operator who through reforms that would wishes to remain anonymous, strengthen its stranglehold of told Business24 that “The cost is the happenings the sector. already too highinand now this So long as customers of new policy is also going to be collapsed i m p l e m e nfund t e d . management There are companies hundreds of remain Ghanaian unpaid, traders it is travel an arduous task for new who to buy goods to retail in the country. investors to repose trust in existing “Most companies. of them don� t carry any There no denying electronic ispayment cards tothat be the Deposit Insurance able to pay online. TheyScheme should introduced to provide have the flexibility to paycover cash when depositors they arrive.” of financial for institutions gives Protection a certain The Consumer sense of relief to customers. Agency � CPA� has also raised Indeed,questions customers of fund critical about the management companies relatively high cost ofcould the also do with such assurance if that sector is to recover

country� s COVID-19 testing regime. and help deepen the financial The CPA� s Chief Executive system’s stability. Officer, Kofi Kapito, said in out as With news coming much as the government want to indicating that SEC has curb imported cases of the commenced a process to respiratory disease, it must not establish an investor protection burden the passenger but charge fund, isthis paper but what enough to cannot cover their support the initiative knowing cost and not to profit from the what it would do to the waning passenger. confidence in the sector as “Look around Africa and you confirmed by the 2020 KPMG see that what is paid in Ghana for banking the test report. is the highest. Why The if created, should thatfund, be� ” will provide compensation raised questions toHe also investors affectedabout by why the Noguchi Memorial bankruptcies in the sector, Institute for Medical Research of similar to the deposit protection the University of Ghana, was not mechanism banking made to handleinthethe testing for a industry. fee but rather a reasonable Business24 would to urge contract given to like a foreign the securities market regulator company to do what Noguchi could adequately handle. without to remain resolute compromise in to Business24 woulditslikequest to urge establish this fund. a flexible approach that allows We cannot fund passengers to afford either to payfail online managers any longer. The or cash on arrival. earlier SEC gets this over the line, the better for everyone.

COVID-19: Banks deferred GH¢3bn in loan repayments

Investor protection fund under consideration—SEC CONTINUED FROM COVER

Wear a mask Brought to you by

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that the desired outcomes are outbreak had transformed their team structures to the new way of achieved and the economy operations, the bank chiefs working in order to maximise brought back on track.” responded that the immediate Ghana efficiencies digital Insights, banking, Retail ofBanking response was to enforce remote and ensure less-paper operations published by KPMG, confirmed Mr. Awuah� s remarks were working while realigning workers� and generally-held requirements view for social the that reinforced by majority of the top roles. distancing. In the long run, these Continued from cover bank executives who responded will contribute seed money depositors prefer to invest their measures may result in possible While the majority, 69 percent, to the survey. The respondents to operationalise the fund, if money with banks to keeping of respondents indicated that layoffs for some whose jobs advised the Bank of regulator, Ghana to created. This, according to the it with fund management remote working will become a become automated,” the report increase stakeholder consultation will ensure the fulfillment of the It is also envisaged that companies. permanent option going forward, said. in requirement order to propose more key to produce an licensed firms in the sector will Largely, this ison due tofindings renewedof Commenting the there was general consensus that beneficial policies. interconnectedness report to contribute to the fund through high confidence in the on the the new norm will ultimately lead the survey, which wasbanking This, they said, will help the Financial Stability Advisory fees charged on their services. sector following the reforms to the shedding of workers whose theme “The new normal� banks� estimate the timelines and extent Council (FSC), which was jobs Thehave 2020 Banking Industry carried out to by the Bank of Ghana response COVID-19”, PwC� s become automated. to which the policies of the established two years ago, in Customer 2017. Senior Partner, Vish Country “ M o s t Experience b a n k s i n t eSurvey: n d t o since regulator will available. the wake of theremain financial sector permanently incorporate remote Ashiagbor, cautioned that for S o m e r e s p o n d e n t s s i m p l y working as an option available to workers that survive the digital crisis, to strengthen financial thought that there was the need staff based on their roles. 12.5� of p ro g re s s i o n , t hey h ave to system stability. for detailed guidelines from the banks confirmed that they have upgrade their skills to remain “The report shall further government and Bank of Ghana already begun and will continue relevant. form the basis of considering on the implement ation of to realign the job roles and work the creation of an measures put in place toinvestor curb the protection fund to support the impact of the pandemic. SEC’s execution of its mandate In their view, clear guidance in establishment statute,” wasitsmissing, and though this SEC said in the directive. could be shared during The fund, if created, stakeholder consultation, they will compensation could provide not fully embed the new to investors affectedstrategy by policies in operational bankruptcies in the sector, without a detailed documented directive. similar to the deposit protection mechanism in the banking ADVERTISE WITH US industry. Post-pandemic banking TEL: +233 024 212 2742 Sources familiar with this When askedsaid by the auditBank firm arrangement SEC, www.thebusiness24online.net about how the pandemic� of Ghana, and government s

FRIDAY NOVEMBER 6, 2020

Aluworks says re-energised to return to profit path Continued from cover In its 2019 annual report, the company said the GITC’s action, in addition to resuscitation assurances from the government owing to Aluworks’ strategic importance to the extended Bauxite-Aluminium Scheme, was a silver lining amid the torrid times. “This is a significant ruling. It is geared towards limiting the inflow of cheap competitive material from China on the basis of unfair export rebates that China had been giving to its traders to enable them to sell cheaply here. This will level the playing field in terms of price and allow quality to prevail. We do have very highquality products,” acting board chairman Prof. Lade Wosornu said in the report issued to the Ghana Stock Exchange yesterday. “Going forward, we expect an influx of orders for our products; however, we still have the major problem of securing the financing to enable us meet the expected increase in demand arising

from our importing customers converting into local purchasing customers,” he added. Acting on a petition brought before it by Aluworks in 2019, the GITC initiated investigations whose findings indicated that there has been dumping of aluminium products by China onto the Ghanaian market utilising an unfair export rebate. The commission’s ruling was a directive to the Ghana Revenue Authority to implement certain recommendations, especially the additional 35.77 percent duty, in line with World Trade Organisation (WTO) rules. Dumping occurs when a producer exports a product to a foreign market at a price lower than the normal value which the producer or exporter normally charges in its own domestic market. It is usually established by comparing the “normal value” and the “export price”, where the normal value is the price at which the like product is sold for consumption in the originating

Mr. Kwasi Okoh is the Managing Director of Aluworks.

market. In such instances, the importing country can take anti-dumping measures to offset the impact on the competitiveness of domestic industries. Aluworks’ turnover in 2019, according to the report, increased by 23 percent over that of 2018, rising from GH¢62.5m to GH¢77m. It however suffered a net loss after tax of GH¢24.5m, after charging finance costs of GH¢22.8m. In 2018 the company made a loss of GH¢33.2m, after charging GH¢16.6m in finance costs. With the company’s retained

earnings account sitting in deficit, its board failed to recommend a dividend payment for the year. According to the board chairman, without the muchneeded investment in working capital, Aluworks risks a fall in turnover and a rise in losses, despite the ray of hope that has been offered by the GITC. “We will continue working with professionalism in order to enhance the recovery as well as the sustainable and inclusive growth of the business operations of the company and its customers, both national and regional,” Prof. Lade said.

IMANI rates gov’t 56.8% in campaign promises fulfilled Continued from cover The assessment focused on promises in the areas of governance, economy, human capital investment, infrastructure, and the social sector. In a presentation of the final scorecard, Mr. Dennis Asare, a research consultant at IMANI, said government had a rating of “fair satisfactory” in implementing its 2016 manifesto promises. In February 2020, the government by its own assessment said it had fulfilled 78 percent of its promises. On the execution of promises made on the economy, which was rated at 57.62 percent, IMANI centered its assessment on areas including agriculture, tourism and creative arts, and trade and industry. These areas of assessment were scored 59.54 percent, 57.62 percent and 52.53 percent, respectively.

Under the economy, a total of 162 promises were made, of which 41 promises, representing 25.3 percent, have been fully implemented, whereas 101 promises, standing for 62.3 percent, were partially implemented, and 20 promises, representing 12.3 percent, were not initiated. For the infrastructure category, government was scored 51.71 percent. The assessment

covered the 148 promises made covering energy, aviation, ports and harbours, and structural development, among others. In assessing human capital investment, IMANI focused on promises made in the areas of education, which had 32 promises, and health, with 31 promises. In this area, the government was scored 55.87 percent. The fulfilled promises by the Akufo-Addo government in the

area of human capital investment included the implementation of its flagship Free Senior High School promise, the restoration of trainee allowances as well as the promise to increase the amount allocated under the students loan scheme. Under the governance category, IMANI scored the government 59.25 percent. This score focused on promises made on governance, corruption and public accountability, foreign affairs, security, local government as well as chieftaincy, religious affairs and civil society organisations. The fulfilled promises in this area include the establishment of the Office of the Special Prosecutor, passage of the Right to Information Bill, and the amendment of the Criminal Offences Act to make corruption a felony.

FRIDAY NOVEMBER 6, 2020

News

FRIDAY NOVEMBER 6, 2020

GIPS suspends former PPA boss Adjenim Boateng Adjei

he Governing Council of the Ghana Institute of Procurement and Supply (GIPS) has, at a meeting held on November 3, suspended former boss of the Public Procurement Authority (PPA) Adjenim Boateng Adjei as a fellow member of the institute. His suspension was based on the termination of his appointment by the Presidency following findings of an investigation into Manasseh Azuri Awuni’s “Contract for Sale” by the Commission for Human Rights and Administrative Justice. “In view of the aforementioned and subsequent breach of Article 13 of GIPS’ Code of Ethics pertinent to conflict of interest, Adjenim Boateng Adjei is thus suspended as a member of the institute. The institution will update the

public on any subsequent action it might take in future on this matter,” a statement issued to Business24 indicated. GIPS, according to the statement, activated its internal procedures on the matter prior to the commencement of investigations by CHRAJ with its Disciplinary Committee extending a formal invitation to

Mr. Boateng Adjei which he failed to honour without justifiable cause. The CHRAJ report on its investigations into the Contracts for Sale documentary found that the former PPA boss had put himself in a position where his personal interests conflicted with the performance of his functions as CEO and board member of the

PPA. Amongst others, the report said Mr. Adjei could not provide a satisfactory explanation for the “inordinately large volumes of cash passing through the bank accounts” and “far in excess of his known income”. Besides the excessive nature of the volumes of cash, the pattern of the deposits and withdrawals also raised suspicions about the nature of the transactions, the report further explained. “Accordingly, the Commission is referring the suspicious transactions in the Respondent’s Bank Accounts to the Economic and Organized Crimes Office (EOCO) for further investigation under the Anti-Money Laundering Act, 2008 (749) as amended,” the report added. On October 30, 2020, President Nana Addo Dankwa Akufo-Addo terminated his appointment as head of the procurements regulator based on the malpractice.

MTN bright scholars record outstanding results

ix beneficiaries of the MTN Bright Scholarship programme have graduated with first class honors from the Kwame Nkrumah University of Science and Technology, University of Education and University of Cape Coast respectively. These beneficiaries were supported by the MTN Ghana Foundation through its Bright Scholarship Scheme to pursue degree programs in various disciplines. The scholarship covered their cost of tuition, accommodation, a stipend for books and other relevant reading materials that were needed during their studies. Mr. Samuel Appiah (B.Com Finance), Elvis Attah (B.Sc Biochemistry), Francis Chempa (B.Sc Information Technology) and Seth Kofi Pobee (B.Sc Physician Assistant Studies) all graduated from University of Cape Coast whilst George Armeyaw (BSC Integrated Science Education) and Robert Atim Annab graduated from University of Education and Kwame Nkrumah University of Science Technology. In his valedictory message as the best graduating student of the College of Agriculture and Natural Resources, Kwame Nkrumah University of Science and Technology, Robert Atim Annab

said “my special thanks goes to MTN Ghana Foundation for the award of Bright Scholarship, As someone coming from a less endowed background, I would not have achieved this great success without their financial support.” Commenting on this remarkable performance, the Corporate Services Executive of MTN Ghana, Samuel Koranteng said “MTN Ghana Foundation is proud to see how well our beneficiaries are doing. We are very excited about their future and we believe that all of them will work towards contributing positively to society”. The MTN Bright Scholarship was initiated in 2018 and was in fulfillment of a commitment MTN made to Ghanaians during the commemoration of its 20th Anniversary in 2016. During the celebrations, MTN, through the MTN Ghana Foundation promised to award a total of 300 scholarships over a period of three years. The final batch of 100 scholarships were awarded this year for the 2020 edition of the Bright Scholarship scheme. The MTN Ghana Foundation has over a 12-year period awarded over 1,300 scholarships to students from basic school to the tertiary level through different scholarship programs.

Benso Oil Palm profit jumps amid higher commodity prices

he profit of Benso Oil Palm Plantation (BOPP) jump in the first nine months of 2020, amid higher commodity prices. Revenue of Benso Oil Palm Plantation (BOPP) rose by 14.1 percent to GH¢89.67 million for the period ending September 2020, according to the company’s financial statement for the first nine months of 2020. This was driven by 37 percent year on year rise in the price of Crude Palm Oil to US$ 798.12 per metric tonnes in September 2020. The price Palm Kernel Oil also increased by 25.1 percent (y-o-y) to US$ 767.14 per metric tonnes in September, according to data from the World Bank. The company’s margins were also sustained by a slowdown in the growth of operating expenses, which rose by 7.5 percent (y-o-y) (against 34.2 percent (y-o-y) in nine months of 2019 to GH¢10.44 million in the nine months of 2020. This, according to the

company helped to reduce the operating expense ratio by 80bps to 11.6 percent during the reporting period of 2020 from 12.4 percent in the same period of 2019. BOPP’s profit before tax surged by 85.4 percent (y-o-y) to GH¢16.49 million in during the period of 2020 from GH¢8.89 million in the same period of 2019. Net earnings also jumped by 79.8 percent (y-o-y) to GH¢13.67 million from GH¢7.61 million over the same period. Consequently, the company’s net profit margin went up from 9.7 percent to 15.2 percent. Market anaylsts that have observed that company indicate that there is a positive short-term outlook for palm oil prices on back of anticipated disruptions to output by the La Nina whether pattern, which cause flooding in the key producing countries of Malaysia and Indonesia. In addition, palm oil is becoming attractive to sensitive buyers who are concerned by the rising price of sunflower oil.

FRIDAY NOVEMBER 6, 2020

Companies

FRIDAY NOVEMBER 6, 2020

StanChart scoops Best Retail Bank in Ghana award

tandard Chartered Bank Ghana Limited has won the award for the ‘Best Retail Bank in Ghana’ at the 2020 Asian Banker Middle East and Africa Regional Awards. The award was presented to Standard Chartered Bank during a virtual awards ceremony on Thursday November 4, 2020. This adds to the growing list of international banking awards won by the Bank this year. The Asian Banker’s Middle East & Africa Awards is the most rigorous, prestigious and transparent awards programme for consumer banking, transaction banking, risk management and technology implementation in the Middle East and Africa Region. Commenting on the award, Yvonne Fosua Gyebi, Head, Retail Banking, Standard Chartered Bank Ghana Limited, said, “We are delighted to receive the recognition for our industry leading capability in Retail Banking. We have redefined banking in Ghana through innovation, understanding of technology and our best in class SC Mobile digital banking platforms. The convenience and

security for our clients remains central towards digital design in our service delivery. Our clients continue to enjoy a seamless and high-quality banking experience when they use our SC Mobile, Online, Digital Hubs to invest and grow their wealth, make payments through bank transfers or mobile money as well as self- initiate any of the seventy banking service requests on mobile. Our modern digitized branches is available for Advisory services to our clients.” she added. Standard Chartered has achieved key milestones in its digital transformation agenda, initially by launching the first full digital bank on mobile – SC Mobile app - with enhanced features including full on boarding of new clients in 15 minutes then installing Digital Banking Centres (DBCs) to augment its branch network and give clients access to investment products through its digital banking experience. Speaking at the virtual award ceremony, Emmanuel Daniel, Chairman, Asian Banker, said, “Economies are now pursuing a wider and more diverse range

Yvonne Fosua Gyebi, Head, Retail Banking, Standard Chartered Bank Ghana Limited

of policies towards regional integration and cooperation, and the financial system will accelerate its digital transformation and the adoption of online and remote transactions.” “The Asian Banker will continue to track, evaluate and calibrate financial institutions that are on the journey to transform themselves into more competitive and sustainable digital players,” he added Standard Chartered Ghana, with this award, adds to its list of growing awards which includes the Best Bank for

Transformation in Africa, Best Wealth Management Bank and the Best Bank for Financing at the 2020 Euromoney Awards for Excellence and underscores its brand promise, Here for Good. Each year, a total of more than 50 institutions across the MEA region are taken thorough evaluation process, out of which winners emerge for their contribution to the banking sector. The programme is designed to identify emerging best practices in financial services and technology implementations and innovations.

TOR management reassures union over collective bargaining agreement

he management of Tema Oil Refinery (TOR) has reassured various workers’ unions of the organisation that it remains committed to terms of the Collective Bargaining Agreement (CBA) negotiations which was expected to be kickstart this year. In a statement, Management

Francis Adu Tutu Boateng, TOR MD

indicated that the company had to put negotiations on hold due to the severe strain put on its finances by the COVID-19 pandemic. According to the statement, management over the last three years met with the union, demonstrating its commitment to the collective bargaining

agreement which sets out salary and benefits for the next three years. That notwithstanding, the Management of TOR said that it has held on to its workforce during these extremely difficult times, even though the financial impact of the COVID-l9 pandemic has been felt across the globe and

in many cases with devastating impact to businesses. “The Board and Management wish to assure the TOR Unions that it values the CBA negotiations and will continue to engage them in the interest of Tema Oil Refinery and its cherished Staff,” the statement said. The COVID-19 pandemic has had a profound impact on the global refinery industry and TOR hasn’t been spared either, as restrictions on movement amid the pandemic have greatly reduced the demand of petroleum products. The statement from the management of the refinery comes after workers in a protest had given the President a oneweek ultimatum to dissolve the board of the company. The staff said the board must be dissolved over for their failure to steer well the affairs of the company.

FRIDAY NOVEMBER 6, 2020

Banking

FRIDAY NOVEMBER 6, 2020

First National Bank crowned the best SME Bank in the world

irst National Bank has been named as the SME Bank of the Year at the Global SME Finance Forum Virtual awards ceremony held on 27 October. The Global SME Finance Awards 2020 which are endorsed by the G20’s Global Partnership for Financial Inclusion (GPFI) were organised by IFC, a member of the World Bank Group and the SME Finance Forum. FNB was recognised amongst over 100 global participants for its digital innovation, exceptional products and services, as well as the unique and solutionfocused manner it approaches challenges facing SMEs as they incubate, start, run and grow their businesses. The awards were judged by a committee of industry experts, with specific focus on reach, uniqueness and innovation, effectiveness and impact, as well as dynamism and scalability. Jacques Celliers, FNB Group CEO says, “we are humbled to receive global recognition as this showcases that the work we are doing for our SME customers is truly adding value. SMEs are important drivers of economic activity, across all corners of society and are often referred to as the ‘backbone’ of economies. As we continue

Dominic Adu

facing unprecedented economic challenges, coupled with the impact of Covid-19, we are cognisant that the SME sector remains a glimmer of hope in helping our country to create jobs and promote inclusive economic development.” Commenting on the award, Dominic Adu, CEO of First National Bank Ghana said that it is a true reflection of the hard work and the valuable investments into the development of a value proposition that meets the endto-end needs of small to medium businesses. He stated that the First National Bank start, run and grow offering is built on an enterprise business banking platform that offers

holistic and integrated financial solution for small to medium business. All of this is beginning to pay off, and this award is definitely one of the many feathers in our cap as a banking partner. “A key part of what has distinguished us in recent years as a leader in the SME market points to the core part of our strategy to help develop SMEs by supporting them through all stages of their business journey. First National Bank has invested a lot in developing a business banking platform that offers holistic and integrated financial solutions. To maintain our market leading position, it is essential that we continue offering holistic and integrated financial solutions to

our diverse business customers, while ensuring that our business model continually evolves in line with their changing needs,” added Dominic Adu. “We take the business of business seriously. From the onset, we realised that we needed to embrace the concept of “customer value creation”. Therefore, by helping our SME customers grow their own businesses, we are also growing our revenues, as well as increasing employment and further spending in the economy,” says Dominic.   The start, run and grow SME offer also provides businesses with educational material and information through The Business Toolkit. These tools leverage the bank’s digital platforms, are free to use and have become instrumental in providing the right level of support to businesses during the in these hard times of COVID-19. This global award cements First National Bank’s place as a world class bank and the commitment to provide world class financial solutions. First National Bank Ghana is a subsidiary of FirstRand Group of South Africa one of the biggest ﬁnancial institutions in Africa with a full banking presence in South Africa, Namibia, Botswana, Swaziland, Lesotho, Nigeria, Mozambique, Zambia and Tanzania.

Advans Ghana launches a Back-to-School promotion

dvans Ghana in celebrating this year’s World Savings Day (WSD) have seized the opportunity to offer a breath-catching moment for all Ghanaians and its clients during these challenging times, with the introduction of Back-to-school Promotion. In line with World Savings Day 2020 theme “when you save a bit, big things follow”, the campaign seeks to throw a glimmer on savings among parents to prepare towards the return of their children to school. The Back-to-School promotion, specifically, seeks to assist parents and guardians during this last two months of the year to commit to savings towards their children’s school fees in January 2021. As an added value to the campaign, Advans Ghana is assuring an instant cash back on initial deposits for all depositors as well as up-ward adjustment of interest rate at the end of the duration

for all parents who will want to renew their commitment to save on a longer term. Speaking to the media, Olivier Bailly-Béchet, Advans Ghana’s CEO, commented: “Today more than ever following the Covid19 crisis, parents aspire to see their children back to school and wish to offer them the best education opportunities they possibly can. It is our mission to propose to them the possibility to save today easily and prepare for their children’s future with a dedicated and rewarding saving plan”. Indeed, the idea behind this promotion is to propel all interested parents whether committed to savings or not, to save today, for easy return of their children to school tomorrow. Lucky winners, i.e, top depositors in all 20 branches stand the chance of winning free stationary products for their wards. By walking into any of its 20 branches, with a valid National

ID and 2 passport pictures, one can obviously own an account with Advans Ghana and partake in this captivating promo. Launching the promotion, the Chief of Sales and Distribution Officer, Barbara Odei, said Advans Ghana recognises education as an essential tool to the socioeconomic transformation of every society. Hence, Advans resolve to support both schools and parents during this challenging time. “Advans Ghana is proud to announce that its school clients have enjoyed grace period on their loans since the pandemic

started in Ghana and have extended this grace period to the end of December, 2020”. The launch of this promo for parents and guardians is to complete Advans Ghana’s support to the value chain in education. The two months promo, which was launched on the 2nd of Nov this year is expected to last through to the end of December 2020. Advans Ghana Savings and Loans is a subsidiary of the Advans Group head-quartered in Paris with presence in nine countries in Africa and Asia and serving more than 1 million clients. In Ghana, Advans operates in twenty branches across eight regions with the head office located in Accra-Newtown. Advans Ghana’s mission is to provide client centric financial services to small businesses and under-served populations in a sustainable and responsible manner.

FRIDAY NOVEMBER 6, 2020

Feature

FRIDAY NOVEMBER 6, 2020

The CIO diaries: championing a cybersecurity culture

ne of the priorities of the Chief Information (Security) Officer [CIO/ CISO] is to drive employee cyber behavior. A single click of a malicious link by a naive employee could bring the whole organization to its knees, and the CIO spending sleepless nights to get operations back up. While most CIOs and CISOs focus on key strategic areas such as reducing technology cost, increasing budget, enhancing processes and procedures, and providing regular trainings for the organization, a new cohort of CIOs are expanding their cybersecurity focus with another strategy. Creating a cybersecurity culture within their organizations and championing this culture of ‘safety first when in the cyber space’. The integration of a cybersecurity culture into the organization’s culture will help to address employee cyber behavior. In this article, I describe how to champion a cybersecurity culture for your organization. What is a cybersecurity culture? Cybersecurity culture is the set of unwritten rules that surround cybersecurity. It represents the beliefs, attitudes and values of an organization that drive employee behavior in protecting and defending the organization from cyber-attacks. These beliefs, attitudes and values are influenced by both external factors and internal factors. Some of the external factors include industry regulations, and personal experiences outside the organization and are usually outside of the control of the CIO. The CIO however has control over internal factors that include: leadership from the CIO; regular compliance audits (regular phishing exercises, etc.); rewards and punishments for compliance and/or non-adherence;

knowledge transfer; training; and regular communications using effective channels. This may include regularly disseminating news on recent attacks in the world and how employees can help to stay safe from becoming potential victims, and better protect the organization. Culture is difficult to identify, develop and measure for success. Your cybersecurity culture hence needs a good strategy to succeed. Strategy for a strong cybersecurity culture The CIO’s strategy for a strong cybersecurity culture will need to be tacit. It will usually span two continuums: top management and employees. 1. Top management Top management includes those with major budget influence including the Chief Marketing Officer (CMO), Chief Finance Officer (CFO), Chief Risk Officer (CRO), Chief Executive Officer (CEO) and the Board of Directors. Your ability as a CIO to influence the C-Level and eventually the Board will propagate a strong cybersecurity culture within the organization. Influencing at the C/Board-level demands that the CIO should exhibit deep communication skills and understand the following facts: • Security is most likely not the core business of your organization • Your C-level stakeholders have Key Performance Indicators (KPIs) to meet that are bottomline oriented The key to success at this level is to build trust among the stakeholders. One way of building trust is to report on the success of existing cybersecurity investments as it relates to the bottom line. Then create a storyline regarding cybersecurity culture that speaks to the C/Board-level and their world. It is important for your

story to explain how a strong cybersecurity culture impacts the bottom-line and enhances the growth potential of the core business. 2. Employees At the employee level, the CIO needs a more collaborative approach to ensure that employees feel a sense of ownership. One way to accomplish this is to recruit cybersecurity champions or evangelists who will propagate the security culture across their various departments and provide feedback on the success of the program. Recruiting Cybersecurity champions In recruiting cybersecurity champions, it is important to recruit naturally securityconscious persons who understand the impact of information security breaches on their work, and on the organization’s bottom-line and reputation. You may know this from the high performers of your regular information security audits/exercises. Your cybersecurity champions should also exhibit awareness and knowledge in the following areas: • Self-awareness regarding the actions that enhance security • The organization’s laid down policies and procedures that must be followed • Cyber and information security related behaviors and practices expected of every employee • Awareness of the overall threat landscape and staying informed Conclusion In designing a successful cybersecurity culture, the role of top management (C/Boardlevel) cannot be underestimated. Top management buy-in and

participation is critical to drive commitment from all employees. Your goal as a CIO is to influence the priorities, participation, and overall Knowledge (P.P.K) of the C suite regarding cybersecurity. Another recipe for success is the recruitment of cybersecurity champions across all departments. To ensure minimal insider threat, the selection of your team of champions could also consider competence (what the person can do) and access (what resources the person has access to). As businesses finally recognize that cybersecurity is a business enabler, a strong cybersecurity culture will impact operations (the bottom-line), create brand loyalty and a competitive advantage. Additional benefits may be explored from intentionally building cybersecurity considerations into projects that are not necessarily delivering cybersecurity. Finally, the CIO must have a way to monitor the success of the cybersecurity culture along both communication lines (Top management and employee) and the impact on the organization. About the Author Kwadwo Akomea-Agyin is a seasoned business professional with 12+ years of progressive experience in consultative business development, product, and digital transformation solutions. He has a unique ability to understand the market (i.e. buyer and user requirements) and collaborate with key internal stakeholders to translate such business needs into Unique Value Propositions (UVPs) that can be successfully delivered. He is a member of the Institute of ICT Professionals Ghana (IIPGH) and a regular contributor to this column. For comments, contact Kwadwo on WhatsApp: +233544341374 | Email: kojo.e@live.com | Skype: Kwadwo_2010

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FRIDAY NOVEMBER 6, 2020

How Africa can self-finance its economic recovery

or Africa, the COVID-19 pandemic will likely mean negative GDP growth at unprecedented rates. In addition, several African countries are dealing with the aftermath of a commodity price collapse – another key contributor to current recessionary trends. The continent must now navigate economic recovery while building resilience to future shocks. From strengthening the healthcare sector to nurturing broad-based economic growth, African leaders need to develop new strategies for solving structural challenges. With the continent’s external partners also hit by COVID-19 and focusing on their own domestic needs, and with capital fleeing from emerging markets (including Africa) at a record rate, even before the pandemic, Africa’s policymakers need to look inward. One possible solution is a largescale infrastructure investment program partly funded by mobilizing domestic resources through asset recycling, which enables governments to unlock capital tied up in what they already own. By offering these assets through concession schemes to credible privatesector investors, governments could free up funding for critical new projects. Such concessions promise long-term revenue streams and new infrastructure-investment opportunities that should attract more investment capital to Africa. Thus, asset recycling can help close the continent’s massive infrastructure financing gap, which the African Development Bank (AfDB) estimates at $68-108 billion annually. Recyclable assets include power plants, toll roads, ports, airports, fiber-optic networks, pipelines, and more. The funds

generated by monetizing these assets could be deployed in new projects with powerful multiplier effects, creating jobs and business opportunities throughout a country’s economy. This is critical, considering the massive job losses that the continent is likely facing and the millions of young people entering the workforce every year. While asset recycling has never been tried in Africa, Australia has used it successfully to generate over A$25 billion ($18 billion) in three years by recycling just 12 state-owned assets. African governments could repeat this process across the continent to help close the annual infrastructure-financing gap. Aside from the immediate benefits, asset recycling in Africa could attract a new class of infrastructure investors. In Australia, a combination of sovereign wealth funds, pension funds, and several private investment funds participated in such projects. Attracting similar investors by leveraging existing assets would end African governments’ dependence solely on donors and development finance institutions. My organization, Africa50, is currently discussing the implementation of asset-recycling projects with several governments across the continent. Large-scale infrastructure investment dovetails with a focus on digitalization, which can reduce public and private actors’ costs, boost their efficiency, overcome physical obstacles, and improve the quality of services provided to customers and citizens. The continent’s digital transformation is well underway by any metric: the number of new broadband connections is soaring, mobile phone usage continues to trend upwards, and

the continent is a global leader in mobile money. And the “new normal” of working remotely, and changes in consumer behaviors triggered by COVID-19, present a continent-wide opportunity to accelerate this process. But, while economic growth and job creation in Africa would clearly benefit from continued digitalization, broadband penetration is still below the global average. A full digital transformation will not be possible without a reliable infrastructure backbone. Achieving universal broadband access with 4G/5G and expansion of fiber-optic cable networks will require an additional $100 billion by 2030, according to the World Bank. Raising the necessary funds is becoming a top priority for African governments as they seek to adapt to a post-COVID-19 world, and Africa50 is already working on one such transaction in a shareholder country, using asset-recycling principles. Asset-recycling strategies clearly offer a viable way for African governments to contribute significantly to selffinancing the investments that their countries need. And while large-scale digital infrastructure development is, rightly, a priority for African countries, governments must also focus on supporting entrepreneurs with ecosystems that enable digital innovation. Initiatives such as the Kigali Innovation City will provide “plug-and-play” support to techand knowledge-based companies. Finally, African governments must emphasize further regional integration through the African Continental Free Trade Area (AfCFTA). Shared infrastructure is vitally important in developing manufacturing capacity, but many African economic communities are lagging in this regard.

Integrating energy infrastructure, in particular, would stabilize supplies and reduce costs, with economy-wide effects. The AfDB’s Desert to Power initiative, for example, seeks to develop 310 gigawatts of renewable energy across the Sahel region to supply power to 11 countries, including Nigeria, Mauritania, Mali, Burkina Faso, Niger, Djibouti, and Eritrea. Similarly, regional integration of supply chains through full implementation of the AfCFTA would boost local economies and strengthen domestic production capacity. Most African countries rely on trade with non-African partners for around 30% of their GDP. By encouraging intracontinental trade, the AfCFTA will support the growth of the continent’s manufacturing sector catering to local markets. And increasing intra-continental trade from its current level (15% of all trade) to around 60% is likely to create millions of jobs. Clearly, a recovery designed and financed largely by Africans is well within reach. While the pandemic is hitting the continent hard, strategies such as asset recycling, continued digitalization, and stronger regional integration can help ensure that Africa is strong enough to fight back. About the author

Alain Ebobissé is Chief Executive Officer of Africa50.

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FRIDAY NOVEMBER 6, 2020

Thai Airways: Holy flights, dough fritters and home-made bags

hai Airways is getting creative as it looks to raise cash during the travel downturn. Later this month it will launch special flights that will fly over 99 holy sites in Thailand, building on the “flights to nowhere” craze. Thai Airways has already found new sources of income including an airline-themed cafe, dough fritters and handbags made from life vests. But the airline has huge debts which have been mounting during the pandemic. Many airlines have launched flights to nowhere that take-off and land at the same airport. Australia’s Qantas offered “sightseeing” flights over Antarctica while an airline in Taiwan hosted a flight to nowhere on its Hello Kitty-themed plane. Thai Airways’ new flight will not land at any destinations, but will fly over Buddhist temples in 31 provinces before returning to

The Temple of the Emerald Buddha in Bangkok

Bangkok. Passengers will be given a prayer book and special meal, with tickets ranging in price from 5,999 Thai baht (£149) to 9,999 baht for the three-hour trip. Last month, Singapore Airlines offered diners the opportunity to have lunch on a stationary Airbus A380 parked at the city’s main airport.

Despite a price tag of up to US$496 (£380), the first two dates sold out within half-an-hour. Handbags and fritters Thai Airways has been particularly innovative during the Covid-19 drop in passenger numbers in order to boost its revenues.

Bank of England injects extra £150bn into economy

he Bank of England is to pump an extra £150bn into the economy as it warned the resurgence of Covid-19 would lead to a slower, bumpier recovery. Tighter lockdown rules, including new restrictions in England, are expected to push the UK into another downturn. While the economy is expected to avoid another recession, the Bank believes unemployment will rise sharply as government support schemes wind down. Policymakers also kept interest rates on hold at a record low of 0.1%. The Bank expects the economy to shrink by 2% in the final three months of 2020, before bouncing back at the start of 2021, assuming current restrictions loosen. It does not expect the UK economy to get back to its previrus size until the following year. The Covid-19 pandemic triggered the sharpest economic contraction on record earlier this year as nationwide restrictions were brought in to try to contain the virus. Shoppers helped the economy to bounce back over the summer, and the Bank said retail sales remained strong. Some people had started their Christmas shopping early, while others were buying furniture and household goods to adapt to working from home. However, it said the hospitality,

How does the Bank inject money into the economy?

leisure, and tourism sectors had “suffered from lockdown rules”. Many diners had stopped going to restaurants after the end of the Eat Out to Help Out scheme. The Bank said more than a third of people still felt uncomfortable dining in. Fresh restrictions across the UK are expected to drag on growth. The Bank expects the economy to shrink by 11% in 2020. Unemployment to rise Thousands of people have already lost their jobs amid the pandemic, despite various support packages, including an extended furlough scheme. Redundancies have climbed to their highest level since 2009 in recent months. The Bank expects unemployment to peak at 7.75% in the middle of next year, from 4.5% currently. This would be the highest rate since 2013. This represents a deeper downturn, and slower recovery than predicted in August. Chancellor Rishi Sunak is expected to announce fresh measures to support the economy on Thursday.

The Bank of England is in charge of the UK’s money supply how much money is in circulation in the economy. That means it can create new money electronically and the Bank spends most of this money buying government bonds through a process known as quantitative easing (QE). QE is sometimes described as “printing money” but in fact no new physical bank notes are created. Government bonds are a type of investment where you lend money to the government. In return, it promises to pay back a certain sum of money in the future, as well as interest in the meantime. Buying billions of pounds’ worth of bonds pushes the price up: when demand for anything increases, the price usually goes up too. Uncertain outlook The Bank’s Monetary Policy Committee (MPC) that sets interest rates said its forecast reflected “heightened health concerns and uncertainty about the outlook”. Its nine members voted unanimously to increase its stockpile of asset purchases, known as quantitative easing

Another way it is looking to raise extra cash is by making handbags out of spare life vests and slide rafts. Thai Airways’ “Re-Life Collection” of limited-edition totes and handbags are so popular they are currently sold out. The airline industry is facing its worst ever crisis with thousands of job losses and many carriers already out of business. Thai Airways had already been struggling before the crisis and built up 245bn Thai baht (£8.3bn) worth of debts and liabilities. Thailand’s national carrier has also started selling dough fritters at a number of outlets around the city of Bangkok. The snack is sold in a set of three pieces with a dipping sauce and an egg custard for 50 Thai baht (£1.25). The dough fritters bring in about 10m baht in monthly sales and Thai Airways now has plans to franchise the business. (QE), and signalled they were ready to unleash more stimulus if the recovery falters. Samuel Tombs, chief UK economist at Pantheon Macroeconomics, said the Bank’s economic forecasts looked optimistic. “The MPC’s forecasts have been updated for the new lockdown plans, but assume that the Covid hit to the economy gradually dissipates and that there is an immediate move to a free trade agreement with the EU in January; the risks to the outlook are skewed to the downside,” he said. The Bank is currently exploring if it can reduce interest rates below the current level of 0.1%. It wrote to lenders in October to ask them how they would cope with negative rates. Commercial banks have until 12 November to respond. Karen Ward, chief markets strategist at JP Morgan, said pushing interest rates into negative territory was the “direction of travel” for many central banks. However, she expects High Street banks to shield savers from being charged. “It tends to be large corporates that really face those negative interest rates, but this really is about just exercising any tools they still have available, because of course with interest rates already near zero they’re getting more limited in what they can do,” she said.

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