Business24 Newspaper 29th January, 2021 by Business24 Online

FRIDAY JANUARY 29, 2021

BUSINESS24.COM.GH

FRIDAY JANUARY 29, 2021

NO. B24 / 152 | NEWS FOR BUSINESS LEADERS

PIAC wants GNPC listed on stock market

Pandemic inspires 365% growth in mobile money interoperability transactions By Richard Annerquaye Abbey & Joshua W. Amlanu

he number of mobile money interoperability transactions surged to a record high last year following the outbreak of Covid-19 as customers resorted to digital payment platforms. Cont’d on page 3

FDA working to approve Covid-19 vaccine amidst second wave

A prototype of the GNPC corporate headquarters currently under construction in the Western Region

By Benson AFFUL affulbenson@gmail.com

he Public Interest and Accountability Committee (PIAC), the body mandated with ensuring the efficient management of petroleum revenues, says

Fitch projects rise in LNG imports this year

Ghana National Petroleum Corporation (GNPC) should be listed on the stock exchange (GSE) to cede control and ownership of the national oil company to Ghanaians. The move, according to PIAC, will stop government interference in the affairs of

the state-owned GNPC. “The government’s consistent control of the corporation and, for that matter, its use of the corporation to finance quasifiscal expenditures is a worry,” Cont’d on page 2

By Joshua Worlasi Amlanu

he Food and Drugs Authority (FDA) has revealed that as part of its activities for 2021, it is working with the Ghana Health Service and the Ministry of Health to ensure that a Covid-19 vaccine is approved for the use by Ghanaians. Cont’d on page 3

macjosh1922@gmail.com

A final

s Ghana’s liquefied natural gas (LNG) terminal reaches its construction phase, Cont’d on page 5

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Editorial / News

FRIDAY JANUARY 29, 2021

Editorial

Prioritise education on Covid vaccine

he pandemic has ravaged the world with our only sustainable pathway to normalcy being a vaccine. Thankfully, reports of vaccine approval and their subsequent approval for public use is about the best news amidst these deeply unsettling moments. All over the world, there is a mad rush for vaccines by countries for their citizens. This has created an imbalance system that largely favours the rich countries who are in a position to buy the expensive drugs. The development is a shocking one and one that departs from the communal approach required to deal with a disease that threatens the very existence of humans especially looking at how fast the virus is

mutating. As if by some design, the virus mostly spared African countries last year but this year its spread is vengeful requiring the adherence to the Covid protocols as a first measure as well as the vaccine for a longterm solution. Although there are a couple of vaccines out there being administered, Ghana is yet to decide on which one it will procure for citizens’ use – something which the Food and Drugs Authority says it is currently working on. According to the Chief Executive Officer of the Authority, Mrs. Delese Mimi Darko, once the vaccine is approved by the FDA, the Ministry of Health will issue a national policy on its

deployment and use. Despite their usefulness, there is a fair amount of people out there who believe that vaccines could be detrimental to their health as it may render them worse off. These anti-vaxxers’ belief has been reinforced by isolated cases of some deaths among those who have received the jab. The FDA and its allied partners such as the Ministry of Health and the Ghana Health Service must begin to engage the public now on the efficacy of the vaccine. Mass education is needed now even before we start to administer them. We can only win the fight against this disease if we all act united.

PIAC wants GNPC listed on stock market Continued from cover

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the Technical Manager of the committee, Mark Agyemang, told the Business24 in an exclusive interview. The interview, which covered a wide range of questions about oil revenue management and the work of PIAC since its establishment in 2011, included questions about the role of GNPC in helping the country maximise the benefits of its hydrocarbon resources. Mr. Agyemang said one concern about GNPC is that some of its actions and dealings with the government do not follow sound business principles. He said, for instance, that government borrowed US$50m from the GNPC a few years ago, but the transaction was not documented. “So if GNPC is listed on the stock exchange and the government wants to borrow from it, it would be documented,” he said. He added that “GNPC should operate on sound commercial lines, but the interference of the central government stops the corporation from having a strategic plan of becoming a standalone and world-class

operator.” He said the national oil company should be seen to be pursuing the public interest instead of the agenda of a particular government or group of people. According to the Natural Resource Governance Institute

(NRGI), GNPC, which holds and manages the state’s interests in the petroleum sector, sold 73 cargos of oil, made up of 71.1 million barrels valued at US$5.2bn, between 2011 and April 2020.

FRIDAY JANUARY 29, 2021

Pandemic inspires 365% growth in mobile money interoperability transactions Continued from cover According to the Ghana Interbank Payment and Settlement Systems (GhIPSS), nearly 44m mobile money interoperability (MMI) transactions were recorded last year compared to the 9.5m transactions in 2019. The payment systems provider explained that the 365 percent increase in the volume of MMI transactions could be attributed to Covid-19-related factors such as the three-week governmentimposed lockdown, restrictions on movement, as well as mass education on the use of electronic channels. The data released by GhIPSS showed that the amount of money customers moved from their bank accounts to their mobile money wallets was GH¢2.6bn, compared

Customers performing mobile money transactions

with GH¢553m recorded in 2019. Also, in terms of funds sent from one mobile money platform to the other, a little over GH¢5bn was recorded, representing a 712 percent increase on the GH¢619m sent in 2019. Last year, amidst the

outbreak of the pandemic, financial institutions reduced their physical presence, urging customers to patronise their electronic platforms to conduct transactions. As a result, customers used their mobile money wallets to

move a total of GH¢838.5m to their bank accounts – this was an over 400 percent jump from the GH¢162.4m moved in 2019. Consequently, the popularity of cheques as a payment method declined by 14 percent in terms of volume. The value of cheques cleared also fell by 4 percent last year. Improved performance At the end of 2020, a total of 77 million transactions were processed across all platforms, compared to the 38 million transactions processed in 2019, representing a 103 percent increase. Despite the economic fallout of the pandemic, there has been an accelerated adoption of digital payments, as witnessed in the surge in e-payment volumes. GhIPSS expects that digital payments will continue to grow in popularity even after the

FDA working to approve Covid-19 vaccine amidst second wave Continued from cover According to the Chief Executive Officer of the Authority, Mrs. Delese Mimi Darko, once the vaccine is approved, the Ministry of Health will issue a national policy on its deployment and use. Commenting on the recent spike in cases, however, Mrs. Darko reassured the public of the efficacy of face masks, hand sanitizers and other PPEs that the Authority has approved for use by the public. The FDA CEO cautioned suppliers to ensure strict adherence to the approved standards for these products adding that random inspections will be carried out by the Authority as part of its market surveillance activities to ensure compliance. She also urged the public to observe the COVID-19 protocols of wearing face masks, regular hand washing and social distancing in the fight against the pandemic. In response to the COVID-19 pandemic, the FDA issued a 48-hour directive to enable the processing of COVID-19 related products in due time. Statistics from the FDA revealed

a sharp increase in approvals for cosmetic products from 98 products approved in 2018, to 1,825 products approved in 2020. The increase is as a result of the growth in the number of companies producing household chemical substances like antiseptics, disinfectants and hand sanitizers locally thereby contributing to increased employment opportunities. The Authority’s Progressive Licensing Scheme (PLS) certification initiative which focused on the food industry last year, targeted 500 enterprises. Out of the target number, 56 SMEs being 11.2% have received certification in the ongoing process. The Authority indicates that in 2021, the Scheme will be extended

to the local cosmetics industry given the quick wins achieved from the PLS for the food industry. The FDA anticipates that SMEs in these sectors will leverage on initiatives like government’s 1D1F programme and the African Continental Free Trade Agreement (ACFTA) to expand their reach beyond our borders. To further increase the number of registered products namelyfood, drugs, cosmetics, household chemicals, medical devices etc on the market, the FDA as part of its plans for 2021, has reduced its registration fees by 80-90 percent since the beginning of last year. Companies are therefore expected to take advantage of this window to comply with registration requirements. The FDA also seeks to

collaborate with GRA Customs and the Ghana Integrated Customs Management Systems (ICUMS) to provide protection for importers whose registration numbers might be used by other importers illegally to process FDA registration requirements. Additionally, the Authority reiterates that it will continue the ‘Take Back of Unwanted Medicine (TBUM) Project with the aim of taking or retrieving unused and expired medicines from consumers and dispose them safely as enshrined in the Public Health Act 2012, Act 851. The scope of this project, according to Mrs Darko, is expected to be extended to other regions. As part of efforts to win public confidence, the Authority has launched a customer survey platform, to obtain feedback from consumers and clients that will help in streamlining and improving on its service delivery system. To this end, the CEO, Mrs Darko, charged staff of the FDA to discharge their duties with professionalism underpinned by the Authority’s core values of Integrity, Accountability and Teamwork.

FRIDAY JANUARY 29, 2021

News

FRIDAY JANUARY 29, 2021

Impact of bushfires on nation becoming unbearable -- MP By Eugene Davis

he economic damage caused by bushfires in the northern parts of Ghana is a major cause of concern as it could drive away potential investors, MP for Bole Bamboi, Yusif Sulemana has said. In recent weeks, raging bushfires have wreaked havoc to large tracts of farmlands alongside other valuable properties leaving farmers and homeowners counting their losses. Presenting a statement on the floor of parliament on bushfires, Mr. Sulemana cautioned that the country faces a massive cost from deadly fires that have razed through large tracts of farms/ “Lately, the damaging effects of bushfires especially in the savannah zone have been exacerbated by the effects of climate change. The savannah zone, as we are all aware, is characterised by large expanse of dry fields. Consequently, in the harmattan season, it is common to see unhindered winds traveling on average at 50km/h and in the process causing uncontrollable bushfires. The adverse impact of these fires on rural economies and folks cannot be overemphasized,”

he said. Climate change has not only intensified harmattan, it has altered its onset and longevity. Previously, almost all recorded cases of bushfire outbreaks start from the month of November and should be facing out by close of January, but the trend has changed, he noted. “There are reports of people losing hundreds of acres of crop fields because someone else is trying to smoke out a rat. This cannot be acceptable. The expected rewards from such endeavors, Mr Speaker, are not worth the costs occasioned by these destructive annual fires. The cost of these fires, on an annual basis, is becoming too huge to bear by our country men/ women in the rural areas”. On some of the strategies to help tackle it, he recommended that a coordinated educational program aimed at effecting attitudinal change and showing people the impact of their activities should be embarked on. At the community level, the Ghana Fire Service must be encouraged to continue and improve its community fire committee program where committees of young men are formed in every community and trained to act as the first line of

Yusif Sulemana believes the fires would soon have ramifications for the entire economy

defense in case of a fire outbreak, he added. He also stated that at the national level the desire of successive governments to

enforce and where necessary strengthen the law on bushfires appears to have waned and urged that punitive measure must be enforced to deter people.

Fitch projects rise in LNG imports this year Continued from cover Fitch Solutions has projected the country’s import of the commodity to reach 1.2 billion cubic meters (bcm) this year. The research arm of the ratings agency Fitch said the increase in imports, which is due to the LNG terminal, will predominantly serve the power sector, which has suffered some downtime in the past owing to the cost of fueling with crude oil. According to TrendEconomy, in 2019 the country imported about 631,384kg of LNG. Fitch forecast Ghana’s gas consumption to increase by 15 percent in 2021 to 4.53bcm, as the country begins to recover from the Covid-19 pandemic and the flagship gas-fired Bridge power plant comes online. “Our Country Risk team are upbeat about Ghana’s growth prospects and expect real GDP to grow by 4.8 percent in 2021. Accordingly, recovering

industrial and manufacturing activity will support the growing demand for gas in the near term,” Fitch said. The LNG terminal’s floating regasification unit arrived in Ghana in early January, marking one of the final steps in the project’s construction. In view of this, the operator of the terminal, Tema LNG Terminal, expects that the facility will be online by the end of the first quarter of 2021, having been delayed from the first quarter of 2020 due to Covid-19. Currently, suppressed gas prices, due to the present state

of international oversupply, has created a buyer’s market for LNG. “However, Ghana is one of the few SSA countries that is able to capitalise on these market conditions and subsequently increase their LNG demand over our forecast period,” Fitch said. The LNG facility is touted as significant for both Ghana and sub-Saharan Africa (SSA), as it marks the region’s first offshore LNG import terminal. Due to huge capital requirements needed for LNG infrastructure construction, as well as the weakened macroeconomic environment

many countries find themselves in due to the Covid-19 pandemic, Fitch anticipated investments in this area as less likely in its forecast. As a result, only Ghana and Côte d’Ivoire are set to become key LNG importers in the region over the forecast period. Once online, Tema LNG Terminal will operate the US$350m project for 12 years, after which the terminal operatorship will be transferred to the Ghana National Petroleum Corporation (GNPC) and the Ghana Ports and Harbours Authority (GPHA). The new terminal has the capacity to import around 2 million metric tonnes per year (mtpa) of LNG, and in May 2018, GNPC signed a cooperation agreement with Russia’s Rosneft to supply 1.7 mtpa of LNG over 12 years. However, Royal Dutch Shell has since replaced Rosneft as the supplier of the LNG to the terminal.

FRIDAY JANUARY 29, 2021

News

FRIDAY JANUARY 29, 2021

Commercial flights to Ho to begin in Easter

he Ghana Airports Company Limited (GACL) has announced the launch of commercial flights to Ho during the Easter holidays. Amma Faake Gadzekpo, Head of Business Development Services of the GACL said the facility had long been ready, and that the Company had been looking for the “right opportunity and timing to make it happen.” She made the announcement at a stakeholders meeting in Ho organised by the Ghana Tourism Authority (GTA) to engage stakeholders including; players in the hospitality industry on developing sustainable packages to grow the travel and tour industry in the Region. Ms Gadzekpo said an increase in tourism, and business activities in the Region were likely to make the Ho route one of the “best” in the country. She said the route development strategy hinged on the collaborative effort of stakeholders including; the tourism authority, the flight operators, and hospitality industry. Madam Gadzekpo noted that ease of travel, seamless operationalisation and

affordability remained the key factors to developing the route, and asked stakeholders to help develop and market affordable packages. “The idea is for us to truly work together and harness the potentials together,” she stated. She said part of the strategy must include the development of a vibrant social media campaign, and also the engagement of influencers and brand

ambassadors. Mr Ade Dayo, Head of Marketing at Africa World Airlines (AWA), which is proving the flight services, announced a twice-per-week flight schedule to the airport, at GH¢99.00 for a one way. He said the fare was introductory and would stimulate the market, and enable stakeholders to come together for an all-inclusive package.

Mr Dayo said the company partnered many international flight operators and touted the possibility of easing international flights to Ho. Mr Alexander Nketia, Regional Head of the GTA said the operationalisation of the Airport had the potential to open up the Region, and was hopeful it would help save the COVID-19-hit tourism industry. He said a technical committee would be constituted to develop the promotion strategies. Private stakeholders in the Region welcomed the announcement, with some saying it was a dream come true, and called on the government to fix roads in the region for a conducive ground travel experience. The $25 million Ho Airport was completed in 2016 as a 100-passenger facility, which holds two medium-sized aircrafts at a time. AWA is a Ghanaian airline that commenced operations in September 2012. It runs five domestic points in the country and visits four destinations in the African subregion. GNA

Ghana receives €9.7m EU Grant to Improve Access to Power in Sub-region

he European Union (EU), through the French Development Agency, has approved a €9.7-million euro grant for the Ghana Grid Company (GRIDCo) to boost infrastructure works on the interconnection line between Ghana and Burkina Faso. A joint press statement said the grant was expected to increase electricity access in Northern Ghana and exporting capacity to the sub-region, especially Burkina Faso. The EU grant facility will be used to finance the upgrade of an 18km long 161kV transmission line located between Ahodwo and Anwomaso substation in Ghana’s second largest city, Kumasi. It will also support power transfer capacity from the South of the country up to Burkina Faso, through the 330kV line from Kumasi to Bolgatanga as well as reductions in transmission losses. The 330kV line project was initially financed with a US$174 million loan from AFD to GRIDCo and a €4.8 million euros technical assistance grant from the EU. The €9.7 million grant agreement was signed in Accra

by AFD Country Director, Christophe Cottet and GRIDCo Chief Executive, Jonathan Amoako-Baah. The EU Ambassador in Ghana, H.E. Diana Acconcia and French Ambassador to Ghana, AnneSophie Avé, were present at the ceremony. Mrs Diana Acconcia emphasized the project’s contribution to securing the overall GhanaBurkina Faso interconnection line, which is a priority under the West African Power Pool (WAPP). “It is a great example of European partners coming together to support integration of regional electricity markets”. Mrs Anne Sophie Avé, Ambassador of France to Ghana said: “This new project supported by EU and France will allow GRIDCo to complement one of the largest development investments of France in Ghana to enhance and upgrade electricity transport. This is a testimony of what the partnership between Ghana and France is about: supporting greener economy and jobs creation. This financing will translate into better and more

reliable energy available for firms and Ghanaian citizens, and generate more growth, well-being and revenue for all”. Jonathan Amoako-Baah, GRIDCo Chief Executive said: “This financial support from the EU represents a significant investment in our quest to remain the leading power transmitter in

the sub-region. Our long-standing relationship with the EU, through AFD, continues to prove instrumental in the delivery of quality access to electricity in West Africa, in line with Goal 7 of the Sustainable Development Goals (SDGs).” GNA

FRIDAY JANUARY 29, 2021

World

FRIDAY JANUARY 29, 2021

UN forecasts 4.7% global economic growth in 2021

he United Nations warned Monday that the world economy is “on a cliffhanger,” still reeling from the COVID-19 pandemic whose impact will be felt for years but still expected to make a modest recovery of 4.7% in 2021 which would barely offset 2020 losses. The U.N.’s new report on the World Economic Situation and Prospects said the once-in-acentury crisis sparked by the global impact of the coronavirus caused the global economy to shrink by 4.3% in 2020 -- the sharpest contraction in global output since the Great Depression that began in 1929 and far higher than the 1.7% reduction during the Great Recession of 2009. “The depth and severity of the unprecedented crisis foreshadows a slow and painful recovery,” said U.N. chief economist Elliott Harris, the assistant secretary-general for economic development. “As we step into a long recovery phase with the roll out of the vaccines against COVID-19, we need to start boosting longer-term investments that chart the path toward a more resilient recovery

-- accompanied by a fiscal stance that avoids premature austerity.” According to the report, the lockdowns, quarantine measures and social distancing introduced during the second quarter of 2020 “helped to save lives but also disrupted the livelihoods of hundreds of millions of people worldwide.” By April, it said, “full or partial lockdown measures had affected almost 2.7 billion workers, representing about 81% of the world’s workforce.” And it said another 131 million people were pushed into poverty,

many of them women, children and people from marginalized communities. China, the world’s secondlargest economy where COVID-19 first emerged, was the only country in the world to register positive economic growth in 2020 -- 2.4% -- and the U.N. forecasts that it will grow by 7.2% in 2021. Hamid Rashid, chief of the U.N.’s Global Economic Monitoring Branch and the report’s lead author, told a news conference launching the report that China will account for about

30% of global growth in 2021. If that happens, he said, it will help many countries in Africa, Latin America and the Caribbean that supply resources and commodities to China. According to the U.N. forecasts, the U.S. economy will grow 3.4% in 2021 after shrinking 3.9% in 2020, Japan’s economy will grow 3% this year after contracting 5.4% last year, and economies of Euro-zone countries will grow 5% in 2021 after shrinking 7.4% in 2020. AP

The Rockefeller Foundation announces grant to expand access to COVID-19 testing and tracing in Africa Accelerate COVID-19 Testing

he Rockefeller Foundation has announced a new grant of US$12 million to the Africa Public Health Foundation to help expand the geographic coverage of testing and to strengthen contact tracing for COVID-19 in Africa through the Africa Centres for Disease Control and Prevention (Africa CDC). “Equitable access to testing and tracing is essential to rapidly identify and respond to COVID-19 outbreaks until a vaccine is widely available to all,” said Rajiv J. Shah, President of The Rockefeller Foundation. “One year into the COVID-19 pandemic, too many people still do not have access to the tools that they need to keep themselves, their families, and their communities healthy and safe. We’re pleased to work with the Africa Public Health Foundation and Africa CDC to catalyse a more efficient and inclusive response to and recovery from the COVID-19 pandemic across the continent.” This funding will support a broader effort to accelerate equitable access to testing technologies, increase testing

(PACT), an initiative rolled out in August last year, Africa CDC is establishing partnerships across the globe to mobilize technical, material and financial resources to support African Union Member States in expanding testing, tracing and treatment for COVID-19. This grant will contribute to the implementation of PACT across the continent.

of asymptomatic persons, and reducing community transmission of SARS-CoV-2 in the sub-Saharan Africa region. Until date, more than three million COVID-19 cases have been reported in Africa, with the current daily average of new cases in the second wave surpassing that of the first wave. Testing and tracing remain two of the strongest public health interventions for containing COVID-19 on this continent of about 1.3 billion people. Yet, only a little above 30 million tests have been reported since the beginning of the pandemic. By scaling up testing and tracing, health authorities on the continent will have access

to more reliable epidemiologic data to advise governments, businesses and the public on how to better manage the pandemic and mitigate its socioeconomic impact. “Testing is the number one tool to fight this pandemic because without testing we will be fighting blindly,” said Dr John Nkengasong, Director of Africa CDC. “We also need to trace people who are infected, isolate them and treat them. By supporting African Union Member States to do more testing and tracing to identify and isolate infected persons, we will be able to control the virus and limit transmission.” Through the Partnership to

The grant will also help increase access to testing in urban and rural areas, strengthen community level contact tracing, enhance data infrastructure and accelerate screening and case finding in high-risk populations. Dr Francisco Songane, Interim CEO of the Africa Public Health Foundation said: “The Africa Public Health Foundation is sincerely grateful for the leadership and support of the team at The Rockefeller Foundation. It is our mission to forge partnerships and mobilise resources for Africa CDC. In facing the COVID-19 pandemic, this kind of collaboration is needed more than ever.”

FRIDAY JANUARY 29, 2021

Feature

FRIDAY JANUARY 29, 2021

61% of male informal traders not wearing masks – survey reveals

By Professor Douglas Boateng

“

The danger is gone,” “no money to buy ” and “mask is in my hand bag” are some of the main reasons influencing informal traders’ decisions not to wear masks in public. While the wearing of face masks remain a mandatory requirement in fighting the spread of SARCOV-2 and COVID-19, informal traders on the streets in parts of Accra have become less inclined to adhere to the WHO safety protocols. A recent purposive study between September 2020 and end December 2020 (“ aka period”) involving 2450 informal traders, hawkers and vendors in and around the centre of Accra, investigated the use of face masks among male and female traders at amongst others, Oxford Street-Osu, areas around the Accra and Palace malls and nearby streets, Spintex road, the following intersections: Olusegun Obasanjo-Kanda highway Blohum streetOlusungun Obasunjo highway, Osu-Badu Avenue-George Bush highway, Olusegun ObasanjoLiberation road, Stanbic HeightsLiberation road, Kofi Annan street, 37 Bus Station etc The population sample included fifty eight percent 58% females and forty two percent 42% males. The action based mini research highlighted a growing trend of traders operating in public without wearing a face protection mask. Thirty nine percent (39%) of the males observed and interacted with over the “period” generally wore their masks whilst Sixtyone (61%) percent mostly did not.

Of these, approximately 31% had masks in their pockets or on their persons. The remaining 30% did not have a face mask with them.

there is no more danger is worrying as Ghana starts to experience the growing impact of the evolving second wave.

The top four excuses male vendors made for not wearing a face mask included:

In a recent statement by President Nana Akufo-Addo, he warned that Ghana’s COVID-19 infection rates were climbing and the new strain(s) of the virus may already be in the country. While these infection rates have not reached the numbers experienced during the peak of the first wave, the critical, serious and death rates are likely to climb if citizens do not take precautions to significantly reduce transmissions. One such precaution is the wearing of face masks. COVID-19 is largely spread through respiratory droplets that are passed from person to person through the mouth or nose. According to the Centre for Disease Control, studies have shown that “masks reduce the spray of droplets when worn over the nose and mouth.” According to Boateng the unfortunate reality is that the informal traders, their customers and wider society are at serious risk of a potential dramatic increase in SAR-COV-2 infections and the associated COVID-19 disease due to carelessness, complacency and sometimes ignorance. “What is regrettably happening in this very vibrant segment of society has supply chain implications and major impact on the lives and livelihoods of the entire citizenry. It is for this reason why policy makers and implementors must immediately come up with ways to create awareness plus enforce the law”. Purposive study expert Professor

- “No money to buy”, - “GOD will provide protection” - “Forgot at home”, and - “disease is gone . Other reasons given for not wearing masks were also provided. Some vendors indicated that they could not breath. Others explained that it was a rich man’s disease plus it was also too hot to wear a mask . Male Vendors also explained that they rarely see their leaders wearing masks so don’t think that they should have to either. In comparison to male informal traders, the study found that only 15% of female traders were not wearing masks. Fifty eight percent (58%) percent of female traders had masks on and 27% had it in their handbags. Reasons provided by female traders for not wearing a mask were similar to those expressed by their male counterparts. The top four reasons that female traders cited for not wearing face masks were: - “GOD will provide protection,” - “ Mask is in my handbag,” - “no money to buy ” and - “no more danger” The belief among informal traders that the threat of the coronavirus is either gone or

Douglas Boateng emphasized. To help contain the spread of SAR-COV-2, the wearing masks have been strongly recommended by the World Health Organisation, leading local and global experts including Dr Fauci-USA, Dr AboagyeGhana, Professor Vallance-UK, Professor Ampofu-Ghana, etc. “It is now a widely accepted fact that wearing a face mask can help to reduce the spread of the Coronavirus. The fact that so many informal traders are not wearing masks is concerning. The informal traders’ explanations for ignoring the proven safety protocols are equally disturbing as it is very clear that the danger of COVID-19 is far from over.” Professor Boateng stressed “As Ghana battles with the second wave of COVID-19, greater emphasis on the importance of the continued use of face masks needs to be made. Citizens need to play their part in protecting themselves and those around them. Simply wearing a face mask while out in public and in closed areas can make a big difference in our battle with the invisible, cunning and very elusive SARCOV-2,” Boateng concluded. Professor Douglas Boateng is an international chartered director and Africa’s first ever appointed Professor Extraordinaire for Industrialisation and Supply Chain Governance. He is the CEO of PanAvest International and the founding non-executive chairman of MY-future YOURFuture and OUR-Future (“MYO”) and the highly popular daily Nyansa Kasa series. For more information on COVID-19 updates and Nyansakasa visit www.myoglobal.com.

FRIDAY JANUARY 29, 2021

Feature

FRIDAY JANUARY 29, 2021

The problem with the COVID convergence

By Pinelopi Koujianou Goldberg

here is broad agreement that the COVID-19 pandemic has exacerbated inequality within countries. Less frequently noted is the impact on inequality across countries, which has been moving in the opposite direction, owing to the disproportionate effect that the virus has had on advanced economies. Early in the pandemic, many expected that poorer countries would be hit much harder than rich countries. In a May 2020 poll of the Initiative on Global Markets’ Economic Experts Panel, a majority agreed that the “economic damage from the virus and lockdowns will ultimately fall disproportionately hard on lowand middle-income countries.” And policymakers held a similar view, with International Monetary Fund Managing Director Kristalina Georgieva noting in April that, “just as the health crisis hits vulnerable people hardest, the economic crisis hits vulnerable countries hardest.” The assumption was that lowand middle-income countries would suffer from a lack of public-health capacity and fiscal resources. But the data tell a different story. In a June 2020 paper, the World Bank’s Tristan Reed and I found that cumulative COVID-19 deaths per million people were substantially higher in high-income than in middle-income and low-income countries, even when excluding China. Moreover, the trajectories of the pandemic were remarkably different across countries at different income levels. As we showed in an update in December, this pattern has persisted: there is a strong positive correlation between income per capita and deaths per million. And though it might be

tempting to attribute this finding to a measurement error (deaths may be reported less accurately in poorer countries), the magnitude of the differences is simply too large to ignore. For example, recent data show that as of January 28, 2021, there were 1,323 deaths per million people in the United States and 1,496 deaths per million in the United Kingdom compared to 712 in South Africa (the hardest-hit country in Africa), 111 in India, 107 in Indonesia, 14 in Angola, and 7 in Nigeria. Meanwhile, many of the upper middle-income countries in Latin America have exhibited mortality patterns similar to those documented in Europe and the US. We do not yet have a full explanation for this unexpected pattern. Preliminary evidence suggests that many low-income countries may have benefited from demographic factors (younger populations; lower obesity rates) and trained immunity (in which the innate immune system reprograms itself against a disease). But even more surprising is the unanticipated “advantage” that poorer countries have demonstrated on the economic front. As a new paper by the Nobel laureate economist Angus Deaton shows, global inequality has declined as a result of the pandemic – at least in the short run. During the past year, income per capita fell by more in richer countries than it did in poorer countries, resulting in an unexpected “convergence” between rich and poor. More deaths per million means not just lost lives but also greater income losses. Equally important, this pattern is not driven by China. On the contrary, while a populationweighted measure would suggest that global inequality has increased slightly – because

China (which is no longer a poor country) pulled ahead of others last year – a populationunweighted measure that excludes China reveals a marked decline in global inequality. Reduced inequality is usually a welcome development, at least in settings characterized by vast disparities in living standards across countries at different stages of development. And yet, the COVID-19 experience serves as a somber reminder that the “how” matters as much as the “what.” In this case, global inequality declined not because poorer countries became richer but because richer countries became poorer. This form of convergence has disturbing policy implications. While low- and lower middleincome countries have fared well in relative terms, their outlook is increasingly bleak in absolute terms. Many now face rising debt, slower growth, declining revenue from commodity exports and tourism, and diminishing remittances. Moreover, we have yet to see the long-term consequences of a lost year of income and investment in human capital. Millions of children (especially girls) have missed a year of school, just as millions of women have been deprived of maternal health care and millions more people have been plunged back into poverty. Making matters worse, the nature of this unexpected convergence implies that advanced economies will have little appetite to channel resources toward poorer countries, whether in the form of direct aid, openness to international trade and investment, or debt forgiveness. Preoccupied with rising inequality at home, highincome countries will continue to turn inward, prioritizing their own citizens’ needs over those of the global poor.

The US and Europe’s retreat from the developing world will create an opening for others, not least China, which has already returned to growth. If accessing lucrative Western markets becomes untenable as a result of rising protectionist sentiment, China-centric alternative initiatives such as the recently signed Regional Comprehensive Economic Partnership may become increasingly attractive to developing and emerging economies. On a more positive note, low interest rates in the US and Europe may lead to a “hunt for yield,” driving capital flows into developing countries. But, if so, these economies will need robust institutions and thoughtful policy to ensure that capital inflows foster widely shared growth and poverty reduction, rather than merely enriching a small upper class. Most important, all countries will need to continue investing in their human capital and improving their domestic institutions, resource scarcities notwithstanding. Many improvements are a matter of will rather than budget. For example, strengthening schools is often a matter of ensuring that teachers show up in the classroom, and that students have access to appropriate textbooks. Efficient use of available resources and effective implementation will be more important than ever. With the rich getting poorer, the poor must take matters into their own hands. About the author Pinelopi Koujianou Goldberg, a former World Bank Group chief economist and editor-in-chief of the American Economic Review, is Professor of Economics at Yale University.

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Feature

By Saadia Zahidi

his article first appeared in Finance & Development magazine.

The World Economic Forum’s Future of Jobs Report 2020 comes at a crucial juncture for the world of work. The report, now in its third edition, maps the jobs and skills of the future, tracking the pace of change based on surveys of business leaders and human resource strategists from around the world. Some jobs will disappear and others will emerge as the world faces a dual disruption. This year, we aim to shed light on the effect of pandemicrelated disruptions placed in the broader context of longer-term technology trends. Here are the five things you need to know from our findings. 1. The workforce is automating faster than expected, displacing 85 million jobs in the next five years. Automation, in tandem with the COVID-19 recession, is creating a

“double-disruption” scenario for workers. Companies’ adoption of technology will transform tasks, jobs, and skills by 2025. Some 43 percent of businesses surveyed indicate that they are set to reduce their workforce because of technology integration, 41 percent plan to expand their use of contractors for task-specialized work, and 34 percent plan to expand their workforce as a result of technology integration. Five years from now, employers will divide work between humans and machines roughly equally. 2. The robot revolution will create 97 million new jobs. As the economy and job markets evolve, new roles will emerge across the care economy in technology fields (such as artificial intelligence—AI) and in content creation careers (such as social media management and content writing). The emerging professions reflect the greater demand for green economy jobs; roles at the forefront of the data and AI economy; and new roles in engineering, cloud computing, and product development. The up-and-coming jobs highlight the continuing importance of human interaction in the new

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economy through roles in the care economy; in marketing, sales, and content production; and in roles that depend on the ability to work with different types of people from different backgrounds. 3. In 2025, analytical thinking, creativity, and flexibility will be among the most sought-after skills. Employers see critical thinking, analysis, and problem solving as growing in importance in the coming years, although these have consistently been cited in previous editions of the survey. Newly emerging this year are skills in self-management, such as active learning, resilience, stress tolerance, and flexibility. The data available through metrics partnerships with LinkedIn and Coursera allowed us to track with unprecedented granularity the types of specialized skills needed for the jobs of tomorrow. 4. The most competitive businesses will focus on upgrading their workers’ skills. For workers set to remain in their roles over the next five years, nearly half will need retraining for their core skills. The survey

also found that the public sector needs to provide stronger support for reskilling and upskilling of at-risk or displaced workers. Currently, only 21 percent of businesses report being able to make use of public funds to support their employees through retraining initiatives. The public sector must provide incentives for investment in the markets and jobs of tomorrow, offer stronger safety nets for displaced workers during job transitions, and tackle long-delayed improvements of education and training systems. 5. Remote work is here to stay. Some 84 percent of employers are set to rapidly digitalize work processes, including a significant expansion of remote working. Employers say there is the potential to move 44 percent of their workforce to operate remotely. However, 78 percent of business leaders expect some negative impact on worker productivity, and many businesses are taking steps to help their employees adapt. Sadia Zahidi is a managing director at the World Economic Forum and head of the Forum’s Center for the New Economy and Society.

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Markets

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