Business24 Newspaper 16th November, 2020 by Business24 Online

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MONDAY NOVEMBER 16, 2020

NO. B24 / 127 | NEWS FOR BUSINESS LEADERS

MONDAY NOVEMBER 16, 2020

Economists urge MPC to maintain policy rate at 14.5%

134 products approved under special licensing scheme for cottage food producers By Eugene Davis ugendavis@gmail.com

he Food and Drugs Authority (FDA) has sanctioned 134 products to be introduced to the market under its progressive licensing scheme for micro, cottage, and small-scale food processors. Cont’d on page 3

BoG moves to protect interest of depositors in RCBs By Joshua Worlasi Amlanu macjosh1922@gmail.com

T By Joshua Worlasi Amlanu macjosh1922@gmail.com

ome economists have advised the Bank of Ghana’s Monetary Policy Committee (MPC), which meets this week to consider its next policy move that will be announced on November

23, to maintain the policy rate at 14.5 percent given the upside risk to inflation. Inflation has declined from 11.4 percent in July to 10.1 percent in October, reaching the lowest rate since March 2020. Nevertheless, explaining the need to maintain

ECONOMIC INDICATORS EXCHANGE RATE (INT. RATE)

the policy rate, a senior economist with Databank, Courage Kingsley Martey, said: “we’re still treading cautiously because the upside risks to inflation still persist in the outlook despite the slight moderation.

he Bank of Ghana (BoG) has laid out protocols that will ensure the protection of the interest of depositors and other stakeholders of rural and community banks (RCBs) through the new corporate governance and risk management guidelines. The bank is in the final phase of issuing the guidelines as a directive to ensure the sanity of RCBs, as it has issued a draft version seeking industry input.

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INTERNATIONAL MARKET USD$1 =GHC 5.7027

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

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

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Editorial / News

MONDAY NOVEMBER 16, 2020

Editorial

Never again, Mr. Governor!

ndeed, one of the greatest achievements in the history of the Bank of Ghana is the banking sector reforms implemented over the last couple of years. The enormity of the problems that had bedeviled the sector made the process painfully slow with customers facing severe inconvenience albeit they were the ultimate beneficiaries. In all, nine banks, 23 specialised deposit taking institutions and over 300 microfinance and microcredit institutions were shut down due to multiple breaches of the regulator’s requirements. The clean-up won the Dr. Ernest Addison’s administration a lot of admirers – many of them who thought this clean-up, as important as it was, could not have been possible. While the governor rightfully receives his well-deserved

plaudits, it has to be stated that the greater work to be done is to prevent a recurrence. The anxiety and apprehension customers went through during the clean-up period was unbearable as well as unpleasant which goes to underscore the saying prevention is better than cure. Thus, the central bank’s newly announced protocols aimed at protecting the interest of depositors and other stakeholders of rural and community banks (RCBs) through the new corporate governance and risk management guidelines deserve commendation. The RCBs sector is a very crucial segment in the financial sector architecture with thousands of customers who may lack the shocks to withstand any disturbance in the sector – hence their protection is absolutely crucial.

According to the bank, it is in the final phase of issuing the guidelines as a directive to ensure the sanity of RCBs with the issuance of a draft version seeking industry input. The objective of the directive is to require RCBs to adopt sound corporate governance principles and best practices to enable them undertake their licensed business in a sustainable manner. It is also expected to promote the interest of depositors and other stakeholders by enhancing corporate performance and accountability of RCBs. Given the huge fiscal cost of the financial sector clean-up, the Dr. Addison led administration’s proactiveness has to be commended. This paper believes that a post-pandemic economy cannot afford any more financial sector clean-up – and depositors also cannot go through that painful process again.

Economists urge MPC to maintain policy rate at 14.5% Continued from cover The decline [in inflation] was caused by a sharp drop in fuel, utilities and transport inflation, which were dragged down by external forces on global fuel prices.” He added: “I don’t expect the latest drop in CPI inflation to 10.1 percent to trigger any movement in the monetary policy rate at this month’s MPC meeting. I’d rather expect continued

vigilance while maintaining the rate at 14.5 percent.” Mr. Martey said an important risk factor that should not be discounted is government spending in this election year, adding that fiscal pressures have not moderated despite the fall in inflation. In a separate interview, a chartered economist, Ebenezer Ashley, said both the elections and Christmas season are indicative of likely increases in

importation and demand for goods and services in the last quarter of 2020. “Due to the foregoing factors, the best the Monetary Policy Committee (MPC) of the Bank of Ghana could do is to stay the policy rate in the last quarter and to consider reductions next year. Staying the policy rate would help the entire economy to mitigate any foreseen or unforeseen internal and external socio-economic shocks that could [increase] inflation in the last quarter,” Mr. Ashley said.

News

MONDAY NOVEMBER 16, 2020

134 products approved under special licensing scheme for cottage food producers Continued from cover The approval allows the products to be displayed boldly on the shelves of supermarkets and grocery shops across the country, CEO of the authority Delese Mimi Darko said. Four months ago, the FDA launched the progressive licensing scheme for micro, cottage and small-scale food processors to help increase their compliance with the food safety and quality standards of the Public Health Act 2012 (Act 851). The approved products were produced by 56 licensed cottage and small-scale food manufacturers that have complied with the requirements of the progressive licence scheme. Speaking in Accra at the presentation of facility licence certificates to successful applicants, Ms. Mimi Darko said the FDA is committed to supporting the growth of the local industry and has set its sights on ensuring that grocery

shops and supermarkets will be stocked with at least 60 percent made-in-Ghana products. The FDA and the National Board for Small-Scale Industries (NBSSI) have absorbed part of the licensing fees of 500 facilities to the tune of GH¢1.85m. In addition, the FDA has given training in good manufacturing practices to the various

companies and will continue to monitor and give them the necessary technical support to ensure their steady progression to the final stage of licensing under the scheme. Factors which contribute to potential hazards in foods, such as poor hygienic practices, lack of preventive controls in food processing operations,

contaminated raw materials or ingredients, and poor storage practices, will be addressed at every stage of the licensing process. The FDA said it will continue to explore various scientific and risk-based innovative ways to support industry without compromising on safety and quality.

BoG moves to protect interest of depositors in RCBs Continued from cover The objective of the directive is to require RCBs to adopt sound corporate governance principles and best practices to enable them undertake their licensed business in a sustainable manner. It is also expected to promote the interest of depositors and other stakeholders by enhancing corporate performance and accountability of RCBs. To promote and maintain public trust and confidence in RCBs, the directive will prescribe sound corporate governance standards which are critical to the proper functioning of the industry. The BoG indicated that the risk management guidelines have been designed to provide a framework within which regulated RCBs will establish a culture of risk management in their institutions.

The risk management guidelines are based on the Banks and Specialised DepositTaking Institutions Act 2016 (Act 930) as well as best practices of rural banking. The central bank said these guidelines will ensure, among other things, that RCBs have a structured approach to risk management that meets the minimum standards expected of

them. “The guidelines set out the minimum standard provisions on policies and procedures that would have to be covered in the various policies and procedures manuals used by the RCBs,” the regulator said. “The guidelines will also provide RCBs with the needed guidance to protect their institutions from losses; protect

and attract capital; and instill confidence in the regulator and other stakeholders through the adoption of measures that promote stability in rural banks and the wider financial sector,” the bank added. Among other things, RCBs are expected to use the guidelines for the formulation of RCB-specific risk management systems that meet their unique needs.

MONDAY NOVEMBER 16, 2020

News

MONDAY NOVEMBER 16, 2020

Kleeve & Tove acquires NDK Capital Limited

he board and management of NDK Capital, one of the best-known asset and wealth management firms in Ghana, is pleased to announce a change in the ownership and governance structure of the company. This follows the acquisition of a 100% stake in NDK Capital by the investment holding and management advisory firm, Kleeve & Tove. The Executive Chairman of Kleeve & Tove, Senyo Hosi stated that his firm is focused on transforming lives by facilitating investment and developing great businesses and brands in Ghana and Africa. “We are excited by this opportunity to develop a model business in the financial sector,” Mr. Hosi says. “We are guided by prudence, service and excellence in the pursuit of our goal to win with our current and future clients.” The new owners of the company have reconstituted its board for NDK Capital with Mr. Eric Nana Otoo (an Investment Banking Consultant), as chairman.

Eugenia Basheer

Members of the board include Mrs. Eugenia Basheer (Managing Director, NDK Capital) and Mensah Seneadza (Country Manager and West Africa Business Head for Schweppes International). The rest are Mr. Kwabena Boamah (an international business consultant) and Dr. Justice D. Yankson (Medical Doctor and Lawyer). “Our team, working in line with the new vision of the board, has

earnestly begun repositioning the company to serve you, our clients, better, deliver greater value to you and make the company a financial beacon and investment gateway for Africa,” said Eugenia Basheer, Managing Director of NDK Capital, in a message to clients of the company announcing the change in ownership. “Over the next few months we shall undergo a renaming and

a rebranding of the entity and introduce novelty in our services and range of products. These will reflect our new promise and vision, that has you, our client, as our ultimate focus.” NDK Capital was established in May 2010 and received its license from the Securities and Exchange Commission a month later to operate as a fund manager and investment adviser. In April 2012, it was registered by the National Pensions Regulatory Authority as a pension fund manager and signed its first Pension Fund Management contract with a licensed pension trustee in the same year. The company launched the first ever bond index in Ghana, the NDK Aggregate Bond Index, in 2013. Board Chairman Eric Nana Otoo said: “We assure clients, employees and all other stakeholders of our restless commitment to govern the company competently, and deliver the best value and experience to all. We aim to bring renewed and exemplary leadership to the industry.”

Ghana records biggest jump in Absa financial markets attractiveness survey

hana recorded the highest jump in both rank and score in the 2020 Absa Africa Financial Markets Index (AFMI) which is independently produced by the Official Monetary and Financial Institutions Forum (OMFIF). With an improved score of 59 points, the 2020 index ranked Ghana’s financial markets attractiveness at the 6th position compared to the 2019 edition where the country placed 13th with a score of 50 points. The improvement was as a result of the country’s robust enforcement of rules and regulations in the financial market. “The countries whose standing improved the most from last year are Ghana, Morocco and Seychelles. Firmer rules enforcing close-out netting boosted Ghana’s standing,” the report indicated. The Absa Africa Financial Markets Index evaluates financial market development in 23 countries and highlights economies with the most supportive environment for effective markets. The aim is to show present positions, as well as how economies can improve market frameworks to bolster investor access and sustainable growth. The Index assesses countries according to six pillars: market

depth; access to foreign exchange; market transparency, tax and regulatory environment; capacity of local investors; macroeconomic opportunity; and enforceability of financial contracts, collateral positions and insolvency frameworks. Ghana was ahead of notable economies such as Morocco, Egypt, Kenya and Rwanda. Speaking at the launch of the Index, the First Deputy Governor of the Bank of Ghana, Dr. Maxwell Opoku-Afari noted that the AFMI, which is in its fourth year, has become an important tool that gives regulators a sense of progress made in the African financial markets. According to Dr. Opoku-Afari, the Index confirms that the reforms undertaken by the Bank of Ghana are yielding positive results in the country’s financial markets. “We are pleased that these reform measures are beginning to yield positive results in the money market as seen in increased volumes of interbank repo trading and general decline in overnight repos grades,” said Dr. Opoku-Afari. “We happy that Ghana’s rankings in the 2020 Absa Africa Financial Markets Index has seen the most improvement among all the surveyed countries. This

spurs us on to do more,” added Dr. Opoku-Afari The Deputy Governor indicated that the central bank will be rolling out new reforms to further strengthen Ghana as a trading hub to push the African Continental Free Trade Agreement agenda. In her remarks, the Managing Director of Absa Bank Ghana, Mrs. Abena Osei-Poku, indicated that as a systemically important bank, Absa continues to play a significant role in promoting economic development and sustainable growth to help transform and prepare Ghana for a brighter future. “The significant investments we have made in partnership with OMFIF, and the investments we continue to make are premised on our firm commitment to remain a force for good in Ghana and on the entire African continent,” noted Mrs. Osei-Poku. “We are encouraged by the many bold initiatives of the

government, the Bank of Ghana and other regulatory bodies in building a robust financial market to propel the growth of the economy. We will continue to build strong partnerships with all stakeholders to create the right opportunities to support Ghana’s economic development and growth agenda.” Explaining Ghana’s ranking on the Index, Mr. Kobla Nyaletey, Head of Global Markets, Ghana & Nigeria, Absa Bank said Ghana has shown a consistent trajectory of improvement since the inception of the Index four years ago. “The 2020 Index shows that Ghana’s improvement was a result of the active foreign exchange market and stronger legal framework.” “Ghana rose the most in Pillar 2: Access to foreign exchange with its foreign exchange liquidity increasing, as measured by interbank foreign exchange turnover,” Mr. Nyaletey added.

MONDAY NOVEMBER 16, 2020

Feature

MONDAY NOVEMBER 16, 2020

Making the Leap from Employee to Entrepreneur!

ntrepreneurs are a rare breed of visionaries, creators and innovators who have the courage and ingenuity to take risks, break away from the herd and cast a path for themselves. Starting a business is an increasingly appealing and aspirational career choice particularly in markets where secure jobs are getting scarcer, and the idea of working your fingers to the bone just to make your boss’s beach house more lavish isn’t very appealing - yet it’s tainted with a veil of uncertainty, especially in the early days. So, how do you become an entrepreneur? Whether you are in the game of amassing wealth, changing the world or building a legacy that will outlive you, there will come a time where you will need to set aside your job and outsiders’ expectations and just ‘make the leap’. Making the leap from employee to entrepreneur (successfully) is arguably one of the key obstacles and moments of truth in the life of a start-up founder. To find out more about this ‘moment of truth’ we gathered some of the best entrepreneurs in Ghana and Founders Institute Mentors to discuss the topic in an interactive online webinar. What follows are the key learnings from “The Leap: Making the Leap from Employee to Entrepreneur in Ghana”. The grubby reality of entrepreneurship is that there is no magic formula. What follows are some useful considerations and inspirations for anyone seeking to make the leap: Serve your customer, not your ego. Be led by the conviction that you’re there to solve a problem, not by confidence in your billion-dollar idea and the need to be seen as a whitecollar entrepreneur. Kafui Yevu (Founder of Kraado) rightly said that, “Entrepreneurship is not meant for you to show off as your own boss. You are there to solve a problem.” Many aspiring entrepreneurs fancy the idea of being labelled as entrepreneurs,

but they have no clue whose problem or pain they are solving with their business solution. The value you sell is in the solution you are offering. Before making the leap, ask yourself these reflective questions; • Is your business model making someone’s life more convenient? • Is your potential customer willing to pay you to make their life easier with your solution? • And after you have served them, do you see them recommending you to their family, friends and other potential customers? Answering these questions is part of the preliminary steps for starting and operating a sustainable business model in Ghana. Keeping the Lights On. How do you pay your bills, especially during the first two years of your start-up venture during which you are either making a loss or barely breaking even? We unpacked what it means to make the leap in three steps and put together some tactics that will help you keep the lights on, building on the experience of some of our FI mentors and entrepreneurs. Remember, this is just an inspiration and one of many options. It’s important that ‘you do you’ and work with the resources and opportunities that are available around you. As Felix Darko, one of the leading Program Managers of the African success story, MEST

stated, “You need to find that place within yourself to focus and dedicate your full energies to both your side hustle and your startup. This is where time management becomes critical.” Stage 1: Keep your job and start a side hustle (your start-up). Keep your job. Once you have identified a problem worth solving, your goal is to develop a solution (or many iterations of it) and find a market (or many ways of bringing the product to market). If you keep an exploratory and testing mindset, then you’re on track. Keep in mind, at this point, you are not running a business full time yet. Making it your side hustle means you are able to nurture and grow your idea or solution and test it within your network. You are also able to fall on your current employment income to fund aspects of your entirely new venture and also provide for yourself and your family. Another argument in favour of such a strategy is the ability to make sound and good business decisions for your early-stage venture since the urgency to make money and keep a roof over your head is significantly reduced. “Have a stream of income that keeps you afloat to survive when starting your business because being in survival mode makes you desperate and you’re likely to make bad decisions.” Foster Awintiti- Akugri | Founder, Hacklab Foundation.

Stage 2: Quit your job and double the hustle. At some point, after you have identified your product-market fit, you have revenue coming in, and your business is requiring more of your time and dedication. This is when your start-up (which started as your side hustle) needs full-time attention, but it can’t yet pay a full time salary. Founder Institute Ghana is made up of amazingly successful Founders and leaders, and some of our mentors who ‘did it’ by deciding to switch from full-time employees to sole traders in order to maintain an income stream from a job they can do for others while opening up more time for the business. Basically, switching their full-time role for a side hustle. Your options may include offering services like freelance consulting, blogging, public speaking and tutoring which is advised to be within your area of expertise. Cecil Nutakor, CEO & Founder of eCampus, mentioned during the panel discussion that he considers offering public speaking services in the education and e-learning sector as a side hustle. This is something he can pull off with ease because it’s in his area of expertise and has an intrinsic alignment with his edu-tech business, potentially acting as a marketing tool for his startup as well. Two birds with one stone, essentially.

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MONDAY NOVEMBER 16, 2020

Feature

CONTINUED FROM PAGE 7 Stage 3: Full-time salary from your start-up You hustled hard. Worked double jobs but it was worth it. You have found product-market fit and you have got money in the bank to pay yourself a salary and focus 100% on your company. You made the leap, congratulations! But this is only the beginning... if your money in the bank is coming from healthy revenue (selling your product) it’s a positive sign of financial sustainability, if your salary is paid with investors’ money, congrats for raising funding but remember, your goal is to make revenue, not raise capital. The Support before The Success Surveying the experts very quickly revealed that a wellbalanced support system should focus on these 3 key areas; 1. Emotional Support: when you have family, friends, and a great network who believe in you and are there to help keep your head straight when the going gets tough, it makes your transition a lot smoother. 2. Mentorship: having mentors who are experts in their respective fields to turn to when you need advice is also good to keep you on track as you make the leap. This is a great opportunity to learn from mistakes they may have made or learn from how they approached a particular problem that you are currently facing. 3. Financial Support: We

are not talking about Venture Capital (VC) money or huge grants from some top-notch organizations which come with tedious procedures. Typically, it’s hard to raise those types of funds in the first 2 years of your start-up’s operation. That is why it’s important to focus on the less expensive forms of funding - i.e. raising funds from family and friends. Startup capital is always a headache for many start-ups and so being able to fall on family and friends reduces the financial burden. In Ghana, the cost of borrowing from any bank is anywhere from 15% to 30%+ per annum, and it is higher especially for a startup, which may be considered as high risk. This is why it’s good to start with family and friends. “It’s the support you get before you make it as an entrepreneur that’s more important.” - Nana Osei Founder, Co- founder, Bluhue & Bôhten Eyewear. Sparring Partner and Teams Another of our expert, Mahi Sall, a Global Startup Mentor, commented: “It is best to have a partner or co-founder when starting a business because they usually come with new skills sets and experiences.” As the saying goes, “No man is an island” and it is important to learn how to collaborate with others to achieve exponential growth. Why own 100% of a venture worth USD $0.00, when you can own 50% of a venture worth millions of dollars? Between 2004 and 2014, 43 unicorns were built globally, and 35 of these had co-founders, with an average of three co-

MONDAY NOVEMBER 16, 2020

founders. This emphasizes the importance of collaborating and sharing the responsibility of building a sustainable business. A co-founder brings to the table skills, experiences, and a network that complement yours. You basically have more than one brain to develop strong and innovative solutions to address the challenge identified for your startup venture. Mahi also added that, “You need a sparring partner or someone to support you when your capabilities alone can’t achieve results.” And of course, those great co-founders, who complemented one another’s ideocracies, talents and skills, have built great teams around them. Cecil Nutakor, who is no stranger to building teams, commented, “If you build the right team, you will do less and you will have the time to be more visionary, innovative, and try new things.” To conclude, it is clear that there is no one-size-fits-all solution for making the leap from employee to an entrepreneur. However, it is our hope that the considerations above will set you on the right path to making informed decisions as to when and how to make such a leap in your current situation. You need cheerleaders (outside of friends and family!). If your idea is that great, and you are the right person to move that idea forward, you’ll quickly get buy-in from others, in various forms of support, whether it be mentorship, connections or financial. Managing Director of Founder Institute Ghana, Simon R Turner,

perhaps pulls everything together most succinctly by saying: “Once you find that your side hustle is taking priority, more enjoyable, and more rewarding than your day job, that’s when you know it’s time to make the leap.” This article was written by Groundbreaking Africa and Maxwell Investments Group, in partnership with Founder Institute Ghana. Hit me up on social media and let’s keep the conversation going! I read all the feedback you send me on LinkedIn, Twitter, Instagram and Facebook. Go to bit.ly/maxwrites to read all my previous articles. Have a lovely week!

Maxwell Ampong is an AgroCommodities Trader and the CEO of Maxwell Investments Group, a Business Solutions Provider. He is also the Official Business Advisor to Ghana’s General Agricultural Workers Union (GAWU) of the Trade Union Congress (TUC). He writes about trending and relevant economic topics, and general perspective pieces. LinkedIn:/in/ thisisthemax Instagram:@ thisisthemax Twitter:@ thisisthemax Facebook:@ thisisthemax Website: www. maxwellinvestmentsgroup. com Email: maxwell@ maxwellinvestmentsgroup.com Mobile: 0249993319

MONDAY NOVEMBER 16, 2020

Aviation

MONDAY NOVEMBER 16, 2020

Covid: Norwegian Air faces ‘very uncertain future’

truggling airline Norwegian Air faces a battle for survival after the Norwegian government said it would not provide further backing. Extra loan guarantees would be too “risky” and “not defensible”, the country’s government said. The airline said it faced a “very uncertain future” with “ventilator support” needed to survive the winter. Norwegian Air said in August it would run out of money in the first quarter of 2021 without extra cash. The airline, which like the rest of the sector has been hit hard by the coronavirus crisis and has grounded most of its fleet, has been holding talks with the government to try to gain more backing. “The fact that our government has decided to refrain from providing Norwegian with further financial support is very disappointing and feels like a slap in the face for everybody at Norwegian who is fighting for the company when our competitors are receiving billions in funding from their respective governments,” said chief executive Jacob Schram.

“The company and the board will turn every stone to get through this situation,” Mr Schram told a news conference, noting that Norwegian has not run out of cash yet. “But we need ventilator support to get through the winter,” he said. Norwegian shares plunged on Monday morning, extending their drop this year to a 99% fall. ‘Tough message’ The Norwegian government has given support to its airline industry during the coronavirus

crisis. In March, it offered a loan guarantee scheme worth 6bn krone (£500m), where the government would pick up 90% of that risk. Half of that guarantee scheme went to Norwegian Air, while 1.5bn krone was directed at rival SAS and the remaining 1.5bn went to Wideroe and other airlines. In May, creditors and lessors took control of Norwegian Air, allowing it to access those stateguaranteed loans. But on Monday, Norway’s coalition government, which has long-ruled out nationalisation of

carriers, said no more guarantees would be forthcoming. “It is a tough message to get. But we are answerable for the responsible use of public funds,” said industry minister Iselin Nyboe. “Norwegian Air has a financial structure that makes it risky for us to go in with support. It was not defensible,” she said. Norwegian Air’s expansion left it with debt of close to £6bn by mid-2020, making it vulnerable to the effects of Covid-19 pandemic, which has severely affected the frequency of flights. Last month, Norwegian operated only 21 of its aircraft, leaving more than 100 grounded, including its fleet of 37 Boeing 787 Dreamliners used for transatlantic journeys. The company has said that more funding could come from the sale of aircraft, the conversion of more debt to equity, or from its owners and the Norwegian government. The government said that so far this year it had provided an estimated 13bn krone in support for the airline industry including loans, guarantees and tax cuts.

South Africa reopens to foreign travelers amid virus creep

n an effort to revive its tourism industry, South Africa has opened up international travel to visitors from all countries, President Cyril Ramaphosa has announced. South Africa will now admit foreign visitors providing they produce negative COVID-19 test results, Ramaphosa said in a broadcast address Wednesday night. This step, making South Africa one of the world’s countries most open to international travel, comes as cases of the disease are slowly increasing in the country. Ramaphosa said his government will closely monitor any signs that international visitors increase transmission rates. “By using rapid tests and strict monitoring we intend to limit the spread of the infection through importation,” said Ramaphosa. “We expect that these measures will greatly assist businesses in the tourism and hospitality sectors.” After closing its borders as part of one of the world’s strictest lockdowns imposed at the end of March, South Africa has gradually reopened, resuming international flights on Oct. 1 but not admitting travelers from

countries with high infection levels. Now that restriction has been removed, Ramaphosa said. With a cumulative total of more than 740,000 confirmed cases of COVID-19, including just over 20,000 deaths, South Africa has nearly 40% of Africa’s total number of more than 1.9 million reported cases, including 46,272 deaths, according to the Africa Centers for Disease Control and Prevention. South Africa, with a population of 60 million people, has reported a disproportionately high level of cases for the continent of 1.3 billion in 54 countries. At its first peak of COVID-19 in late July, most of South Africa’s hospitals succeeded in coping with patients. Hospitalizations and deaths dropped in August and September but in recent weeks, cases have begun to climb. The 7-day rolling average of daily new cases in South Africa has risen over the past two weeks from 2.74 new cases per 100,000 people on Oct. 28 to 2.85 new cases per 100,000 people on Nov. 11. The 7-day rolling average of daily deaths in South Africa has risen over the past two weeks from 0.09 deaths per 100,000 people on Oct. 28 to 0.10 deaths

per 100,000 people on Nov. 11. South Africa’s upward creep is part of an increase across the continent. Africa’s top public health official said the continent has seen an average 8% rise in new coronavirus cases over the past month. “We expected it to happen,” John Nkengasong, director of the Africa CDC said Thursday, warning that when the virus comes back for a second wave, “it seems to come back with a lot of full force.” The African continent is “at a critical point in the response,” he said, again urging governments and citizens to follow public health measures. Testing across Africa remains a challenge, with 19 million tests conducted so far. Countries with the highest increase of cases in the past week include Congo at 37%, Kenya at 34% and Nigeria at 17%. In South Africa, Ramaphosa warned that citizens must remain vigilant to try to prevent a fresh resurgence of the disease, warning that the Eastern Cape province is experiencing a worrying increase. The number of new cases in the province has risen 50% in the past week and the total number of new cases

in the last 14 days is around 145% higher than the previous 14 days, said Ramaphosa. The president announced that South Africa has extended the country’s current COVID-19 restrictions, requiring people to wear masks in all public places, businesses and stores to keep people distanced and a nighttime curfew from midnight to 4 a.m. In one relaxation, liquor sales can now resume to ordinary trading hours. Ramaphosa said that the country was looking to secure a significant supply of COVID-19 vaccines when tests show they are effective and safe. “South Africa is collaborating with several multinational pharmaceutical companies to obtain a safe and effective vaccine for our people and is contributing towards the availability of the vaccine in the rest of the continent,” said Ramaphosa. “We are working through the African Centres for Disease Control and Prevention to acquire and fund a vaccine for the African continent. It is estimated that Africa will need around $12 billion and 750 million doses of an effective vaccine.”

MONDAY NOVEMBER 16, 2020

Feature / News

MONDAY NOVEMBER 16, 2020

What is the difference between mere networking and referral networking?

ecently I met someone who asked at a BforB Club “So what’s the difference between BforB and the other networking groups I go too?” And it’s a valid question, in fact it’s a great question! There are many differences, the number 1 is the quality of the members, BforB is a referral networking system that works through trusted contacts and a great way to work and grow any business. We only look to work with people who are committed to growing through positive referral, who are top of their game and most of all want to put something back in to their local business community.

We are not about being the biggest or the fastest growing… BforB’s focus is on quality, empowerment and education using a proven time-tested system. If a person adopts the BforB process and approach in to his or her area of business and does not fall in to just thinking or viewing BforB as just a business meeting they attend to get contacts then they can generate some serious success year after year. If you want to collect cards then mere networking is great for that and may be what you are looking for, but if you are like most successful business owners who want qualified referrals that turn in to actual business, relationships that turn in to friendships and contacts that turn into contracts

then you may be right for a BforB group or you may want to launch one in your locality? If you can make a commitment to improving your skills, polishing up your follow-up and most of all making sure you have your attitude right so you can achieve your goals then do get in touch. Authored by: Business for Breakfast (BforB)

Business for Breakfast (BforB) is internationally recognised for creating successful networking

meetings, events and training for referral marketing. Our global offices are in Australia, Germany, Czech Republic, Spain, Slovakia, Ghana and headquartered in UK. We create an environment where you can build quality relationships within your group, backed up by an ongoing member support programme. BforB is committed to helping small to medium scale businesses expand. In our professional network, members meet regularly in business networks to develop relationships, support each other and to share and record referral business. We are here to help you get new business from quality business introductions and referrals made through our meetings. Kindly join our next meeting using this link: https://rb.gy/qrf4pl

Whoopro launches to create more value for brands and digital influencers

hoopro, a self-service platform backed by robust technology that connects brands and digital influencers has been launched. This game-changer will provide cutting-edge seamless solutions to address challenges faced by brands and influencers during digital marketing campaigns. Influencer marketing has been a key strategy for brands since the boom of social media. According to the Internet World Stats, there were over 11 million internet users in Ghana at the end of 2019, achieving a growth rate of 39% since 2000. The continuous growth in use of the digital space by people has led companies to see the need to reach their target audience through people of influence. Whoopro offers three key solutions – Helping brands to find the right influencers; Allow influencers to know their worth and earn more; and Provide real-time tracking, reporting and analytics for both brands and influencers. 1. Find the right influencers for your Brand Reach the demographics that speak your brand’s language via social influence marketing. Whoopro brings your brand closer to the people that matter to you. 2. Earn more from your Influence Turn your influence into revenue by speaking for the

Eli Daniel-Wilson, Team Lead at Whoopro

brands you love. Do more than just being social. Whoopro allows you to earn money for your efforts. 3. Realtime Reporting and Analytics Track your campaigns in realtime. Export your campaign report and analytics with full transparency and the flexibility to change direction, evolve, and scale a campaign anytime and anywhere. Whoopro is a digital product developed by Global Media Alliance, a focused Integrated Media & Entertainment Company with over 20 years of experience and expertise in Public Relations and Media Consultancy, Digital and Brand Marketing, Broadcasting, Events

Management and Creative Services. Commenting on the new innovation, Ernest Boateng, CEO of Global Media Alliance Group said “Over the past 20 years in the communications industry, we have engaged many brands across key sectors of the Ghanaian economy such as banking, insurance, telecoms, beverages, tourism, mobile technology among others who have in the recent years found the need to engage influencers to reach their audience. Based on this background, we conceived the Whoopro idea in 2017 which today we have developed into a fully-fledged solution provider for influencer marketing.”

“After the emergence of social media, we have realized influencer activities have grown to become a source of revenue and employment for people. The introduction of Whoopro creates a converging platform that will give brands more value and influencers more worth to earn,” said Mr. Boateng. Eli Daniel-Wilson, Team Lead at Whoopro said “This digital innovation is bringing to market the very much needed structure in how influencer marketing is done. We have built a smart solution to ensure both brands and influencers are getting the best value out of their engagement.” Mr. Daniel- Wilson added: “Whoopro’s unique selling proposition is that it is simple, automated, cost efficient and selfserving. We want to put power and control in the hands of both brand managers and social media influencers in a self-serving way.” As part of the launch, Whoopro secured a partnership with Ghanaian Afrobeat singer Kelvyn Boy to promote the artiste’s latest album titled “Black Star”. The first 5,000 users of Whoopro will earn money to stream his album on all digital music stores. The Black Star has a 15-track body of work featuring the like Kojo Funds, Kofi Mole, Quamina Mp, Twitch 4EVA, Medikal, Suzz Blaq, OV, Samini, Gyedu-Blay Ambolley, Rocky Dawuni, Black Prophet and Efya.

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MONDAY NOVEMBER 16, 2020

Not all leaders are equally well during COVID-19

Dr Nicky Terblanche from the University of Stellenbosch Business School (USB) explores the underlying truth of leadership during a pandemic. Not all business leaders are handling the workplace crises of COVID-19 as well as they should, with those who combine a war-like approach tempered with humanity and compassion proving the most effective, say their executive coaches in a recent study. Dr Nicky Terblanche, Senior Lecturer in Management Coaching at the University of Stellenbosch Business School (USB) outside Cape Town, South Africa interviewed 26 executive coaches across South Africa, the UK, USA and Australia to uncover the underlying truth of leadership in a real-time crisis. “The saying ‘when the tide goes out, you see who’s been swimming naked’ appears to be true from a leadership perspective during this pandemic. In times of crisis, leaders are severely tested. What is evident is that not everyone coping,” observes Dr Terblanche. He says a common theme emerged of a notable increase in weak leaders being exposed by this pandemic. “Some senior leaders who were able to ‘hide’ before, have already been demoted or pushed aside because they are not up to the job. This of course places enormous pressure on the people who have to take over their roles.” Dr Terblanche said he was surprised to learn that a number of middle managers in large South African organisations were not receiving the expected guidance, communication and support from their superiors – with management coaches filling the gap instead. “Their leaders were ‘missing in action’, leaving it up to managers to figure things out. Many coaches in the USA found themselves fulfilling the role of a manager in having to assist their clients in thinking through and finding answers to operational problems due to leaders’ inability to think through options and alternatives

available.” Dr Terblanche found a ‘wartime’ leadership stance during this catastrophic time seems to be effective. “By communicating frequently and clearly, leaders are able to be directive and provide focus to the team. In a crisis, followers want a reassuring leader who can point the way. However, war-like directiveness must not be confused with control. A war commander cannot control all aspects of a war, but instead, after communicating uniform direction, setting clear values and expectation of how we’re going to function, leaders must know when to step aside and trust that their followers will execute. “This is certainly not a comfortable space for those who have a micro-management style. With remote working, anxiety can build up if leaders are used to relying on ‘looking over their staff ’s shoulders’ in order to stay in control.” Dr Terblanche uncovered that a war-like directive leadership should not come at the price of showing a humane, compassionate side. “People may forget what you said, but they will remember how it made them feel. If the leader has always showed compassion for staff long before the pandemic, their caring stance should pay off during this uncertain time and reduce levels of anxiety.” “Leaders who show their vulnerable side in confessing that even though they don’t have all the answers, yet are working collectively with the entire team on solutions and coping strategies, will instil a sense of focus and reassurance amongst staff. “In such instances it is important though for leaders to be mindful of not subconsciously projecting their fear onto the situation. Make sure you understand your own fear and anxieties before you communicate with your team,” says Dr Terblanche. The research uncovered that by being authentic and honest, and putting oneself in the shoes of employees, leaders can help staff to, in some ways, normalise the situation. “Each person’s reality at home is different and as a leader you are now invited into your employees’ home through virtual meetings. Put your staff at ease about working from home by acknowledging for example the additional stressors of having to care for children whilst attending to deadlines, or that disruptions of family members or pets walking in during a meeting is a given.”

Dr Terblanche says the research clearly warns against information overload versus radio silence. “Good leaders in this time are the ones who can sift through the piles of information and use holistic and systems thinking to try and see the bigger picture. This is not the time to be overwhelmed, become insular as a result whilst trying to frantically plan without communicating to the team, leaving staff in a state of limbo.” During this time of crises coaches are observing the levels at which leaders are struggling with their own identity. In some instances, leaders are confronted to act in a way that may violate their own value system. Dr Terblanche says one USA coach’s client was questioning herself after having to fire 200 staff over Zoom, asking herself “Who am I? Is this what I signed up for?’ “On a very pragmatic level, leaders are struggling with their identity due to the physical change in their work environment. Some identify strongly with their corner office or the respect shown by staff when they enter the building, but now they are at home, in cases having to share domestic duties and schooling children from home. No more jetting off, business class, all over the world. It’s about moving off one’s pedestal towards ‘we are all in the same boat – or at least, trying to weather the same storm’. “The coaches interviewed observed that leaders who know themselves, have a sense of centeredness and calm and are able to take a step back and look at the bigger picture are coping far better than those who are traditionally mostly task focused.” The study showed that resilience is most probably the deciding factor in whether leaders will be able to weather the storm or not. “Resilient leaders are those able to consider the bigger picture, are able to look beyond the doom and gloom and seek opportunities. Leaders who have studied and understand systems thinking and complexity theory seem to manage better and are able to see opportunities. Also, those who draw on their experience from challenges faced such as civil wars or the 2008 financial crisis, are far better placed. ‘Never waste a good crisis’ is how one USA coach’s client is relating to the pandemic, actively looking for new opportunities for his organisation.” Dr Terblanche says part of maintaining resilience is looking after one self. “Coaches from all four countries shared how the

leaders they are coaching and who are coping well with this pandemic, are making a concrete effort to maintain their personal well-being. Strategies include exercise, eating healthy, and finding the right balance between working from home and family responsibilities.” The major benefit of coaching in this time has been the ability to assist leaders to stop and reflect, in a way ‘moving from the dance floor to the balcony’ as one of the interviewed coaches aptly described. “Coaches guide leaders to not only think and make plans but first to make as much sense as possible of what is happening on multiple levels. Coaching has always been a powerful space to reflect – guided by a professional who can use theories and frameworks from psychology and adult learning – to sift through information, offer different perspectives and challenge assumptions. By assisting leaders to be self-aware, coaching can help to identify stressors, shape responses and leadership styles. Only once a situation is properly understood can effective plans be made.” The following recommendations, in summary, from the research, provide practical advice to leaders: • Communicate often with your team and personally with each individual that reports to you • Provide direction and reassurance based on what you know and be candid about what is unknown, without projecting your own personal anxieties • Harness the collective wisdom and knowledge of your team • Acknowledge what is in and out of your control and trust your team to execute the vision and direction you have set • Show compassion and understanding on an individual level towards your team • Re-evaluate who you are as a leader. What is your identity now and what is expected of you? • Take a holistic view on this pandemic • Use Systems Thinking and Complexity Theory tools • Actively seek opportunities • Draw on previous experience in similar crisis situations • Look after your own emotional wellbeing and health. • Employ the services of a professional coach to help you with the above and more. CONTACT DETAILS Dr Marietjie van der Merwe USB Representative Marie@ globalnatives.com +230 606 2341 / +230 5 701 1362

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World

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Wells Fargo former boss charged with misleading investors

S financial regulators have accused the former boss of Wells Fargo bank and another former executive with misleading investors in the latest charges to arise from the bank’s fake account scandal. The Securities and Exchange Commission said the bank leaders endorsed and disclosed sales metrics they should have known were false. Ex-chief John Stumpf agreed to pay $2.5m (£1.9m) to settle the charges. He did not admit or deny the claims. Carrie Tolstedt, the former head of Wells Fargo’s community banking operation, is fighting the fraud claims in court. Wells Fargo has been under the scrutiny of regulators since 2016, when it was revealed the firm had boosted its sales by opening millions of accounts without authorisation.

This year it paid $3bn to settle an investigation by the US Department of Justice and SEC. It remains under government monitoring and is also subject to an order by the Federal Reserve that limits its growth. The scandal has led to the

departure of two Wells Fargo leaders, including Mr Stumpf, who stepped down in 2016. Now ex-Wells Fargo CEO John Stumpf testifying at a Senate Banking, Housing, and Urban Affairs hearing in 2016. Earlier this year, he agreed to

pay $17.5m to settle charges tied to the scandal, marking a rare example of a bank executive being personally punished for failing to stop misconduct. The Office of the Comptroller of Currency, a US banking regulator, also barred him for life from the banking industry Ms Tolstedt is facing a $25m fine in a related case, which she is also fighting in court. “If executives speak about a key performance metric to promote their business, they must do so fully and accurately,” said the SEC’s director of enforcement Stephanie Avakian, when speaking about the latest charges. “The Commission will continue to hold responsible not only the senior executives who make false and misleading statements but also those who certify to the accuracy of misleading statements despite warnings to the contrary.”

Lockdown 2.0: Food companies overhauled production to put more toilet than it was at the beginning of which has been making Charmin paper, pasta sauce in stores

hen rumors first began to circulate that the UK would go back into lockdown, Leanne Barnes despaired as bread and toilet roll flew off the shelves again at her local supermarket. But to her surprise, shelves were back to being fully stocked within a few days. Barnes stocked her pantry last time around with a few additional comfort foods - macaroni cheese, ravioli, soup and spaghetti. But as of last week, she said she felt no urge to stockpile goods. So far, consumers haven’t returned to the sort of panic buying frenzy that sent packagedfood manufacturers scrambling earlier this year. At the same time, major food companies – including Campbell Soup CPB.N, Kraft Heinz KHC.O and McCormick & Co MKC.N – told Reuters or have said publicly that they have taken measures like changing their production, packaging or pricing so retailers can keep shelves stocked. Their steps include expanding manufacturing, hiring more workers, re-routing products from restaurants to grocery stores, and turning to bigger pack sizes. Many of their moves came at a high financial cost. Economists say shoppers realize they can’t afford to overspend, and therefore, aren’t likely to make binge purchases. Consumers are more likely to

hold back from stockpiling goods - even with significant pricepromotions on offer – because the economy is weak and they want to conserve financial resources, according to Benny Mantin, director of the Luxembourg Centre of Logistics and Supply Chain Management. A Reuters analysis of a basket of goods shows shoppers are buying far less in the United States and Europe than they did earlier this year at the start of the first round of lockdowns. Yet for consumer companies, the financial consequences of quickly ramping up production have been severe. Beyond Meat’s BYND.O thirdquarter sales growth slowed and the company on Monday posted a $19.3 million net loss, partly due to higher expenses from retooling its supply chain to meet grocery demand earlier this year, and what it described as less “retail stockpiling” during the quarter. Spice maker McCormick’s costs have shot up in the last two quarters and are expected by Refinitiv to rise even more in the current one. “I’d say that today, our supply chain is so much more resilient

the year,” McCormick’s Chief Executive Lawrence Kurzius told Reuters in October. Kurzius said the company has had to de-prioritize products like some gluten-free spices in favor of popular comfort ingredients like pumpkin-pie spice and taco seasoning. “I’m not trying to tempt fate by saying that, but I think McCormick, as well as our industry as a whole, is in a much better place.” Next month, Prego pasta sauce owner Campbell Soup is expected to report an increase in operating expenses, its first in five quarters, according to Refinitiv. Campbell - which has sacrificed some products to focus on more popular ones, such as chicken or tomato soup - spent more on sanitation and labor in its most recent quarter and invested $40 million in a new Goldfish cracker plant in September. Campbell CEO Mark Clouse told Reuters the company has upped outsourcing of production of soup and some snacks to third-party manufacturers – or “co-packers” to meet any unexpected demand quickly. “There will be enough soup for the winter,” he said. “You’ll see a shelf that feels fuller than what you might have seen back in March as we’ve worked closely with retailers to make sure we get assortments right.” Other companies grappling with higher manufacturing costs include Procter & Gamble PG.N,

products at record levels this year and has hired more workers to keep lines running 24/7. Rival Kimberly-Clark KMB.N, the world’s biggest toilet paper maker, is also seeing higher manufacturing and distribution costs, while Clorox CLX.N said this month that it is “investing significantly” in third-party suppliers and getting products to retailers faster. Companies including Kraft Heinz are also running factories 24/7 and making bigger, more affordable pack sizes of products. “Affordability is a rising concern, which should be a benefit to those companies that are fast to adapt,” said Miguel Patricio, CEO of Kraft Heinz which is seeing more demand for 12-pack Mac & Cheese and bigger bottles of ketchup. Patricio told Reuters Kraft Heinz has increased U.S. thirdparty manufacturing by 20%, and its own production by 2025%. Kellogg said the company has plans to invest in “significant capacity” as it enters 2021. McCormick’s Kurzius said it, too, struck more deals with co-packers, changed factory shifts to run 24/7 and hired 400 U.S. manufacturing workers to increase capacity. “We’ve added the equivalent of a whole new manufacturing center to meet this year’s surge in demand,” Kurzius said. Reuters

MONDAY NOVEMBER 16, 2020

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Call Us 0594 016 432 www.bforb.com

Real Estate

MONDAY NOVEMBER 16, 2020

Tips to get your home loan approved

or many first-time home buyers, the process of applying for a home loan can often be daunting as they wait eagerly for a positive response from the bank. “Taking time to understand how home loan applications are assessed can go a long way to help you increase the chances of getting approval,” says Kojo Addo-Kufuor, Executive Head of Home Loan Business at First National Bank Ghana. He shares four tips to help customers get their home applications approved without any delays: • Check the valuation of the property – before a home loan is approved, the bank will conduct their own valuation to ensure that the amount being borrowed is not far off from the market value of the property. First National Bank allows customers to proactively conduct a property and area valuation report on property and compare this to the details provided by the seller or agent prior to the home loan application process.

Kojo Addo Kufuor

• Avoid taking on additional debt – some people mistakenly assume that banks only monitor their credit profiles and perform updated affordability checks prior to the home loan approval process. However, this process continues for at least three months until when the loan is disbursed. Therefore, taking on additional debt or defaulting against credit providers can result in the bank repricing and in extreme cases declining the loan altogether. • Saving up for a deposit – although banks occasionally

grant 100% home loans, having a deposit demonstrates the customers’ commitment to the facility and increases their chances of getting approval. This is very important for customers looking to get a home purchase loan. First National Bank requires clients to make an initial deposit of not less than 20% of the property price as this represents the client’s equity in the property to be financed. • Get pre-approval – getting pre-approval ahead of your home loan application gives you peace of mind by knowing whether you qualify

or not. Your bank will normally ask for your most recent payslip, bank statements and credit report for pre-approval. The experienced team of Mortgage Advisors at First National Bank will help you run an assessment of the property, its value, your income against the loan amount and advise on next steps. “If you qualify financially and have met all the above requirements you are one step closer to getting approval and ultimately owning the house of your dreams,” concludes Mr. Addo-Kufuor. For more information on our home loan application process, visit our website www. firstnationalbank.com.gh If you want to speak to a member of our experienced mortgage advisors, please make sure you join the First National Bank housing fair. The virtual housing fair is happening live on the First National Bank YouTube page, on the 18th and 19th of November 2020 @ 11am each day. Interested participants should visit the First National Bank YouTube page and click the bell icon to stay notified.

U.S. housing market takes a breather but stays hot

he juggernaut that has become the U.S. housing market finally paused to take a breath last week. But even with buyers and sellers taking a step back temporarily, the industry remained hot. During the week ending Nov. 7, both buyers and sellers averted their attention from relocations and instead focused on current events, according to Thursday’s report from realtor.com. “Between the presidential election [on Nov. 3] and a new wave of coronavirus cases, buyers and sellers had a lot of reasons to pause last week,” Danielle Hale, realtor.com’s chief economist, said in the report. Sellers avoided putting their homes on the market, with the number of new listings last week dropping from an already low point, the report said. New listings were down 12% annually during the week ending Nov. 7, worse than the prior week’s decrease of 9% and a significant fall from the week ending Oct. 24, when newly listed homes were down just 2% compared to the same time in 2019. A steady supply of new listings is crucial for home sales, and they’ll need to make a strong

comeback for housing activity to continue, the report said. Due in part to the lack of new listings hitting the market last week, the total number of homes for sale recorded a dip too, with total inventory across the U.S. now 39% below last year’s levels. The speed in which homes are changing hands as well as listing price changes held steady last week with no drastic gains, but both metrics continue “to signal a tight market,” the report said. With buyers competing for

limited inventory, the homes that are available are selling fast. Last week, the average time a property spent on the market was 13 days faster than a year ago, marking the seventh consecutive week that homes are selling 13 or 14 days faster than they did in 2019. For the 13th week running, listing prices logged doubledigit growth, up 12.9% over last year. This latest increase is on par with the 12.2% growth that was recorded in October, when the median listing price reached

$350,000. “The big question is whether both buyers and sellers will jump back into the market after last week’s break,” Ms. Hale said. “With mortgage rates expected to rise on news of a likely vaccine, buyers may have reason to jump back in and find a home sooner rather than later, but sellers may be more inclined to stay on hold. Thus, even as overall activity slows, we may very well see continued price growth and quick sales,” she added.

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Job creation is the new game in town

n the wake of the COVID-19 pandemic, both the US and European economies are gearing up for large-scale job creation. US President-elect Joe Biden has pledged to invest $700 billion in manufacturing and innovation, plus $2 trillion in a “Biden Green Deal” to combat climate change and promote clean energy. Meanwhile, Germany has abandoned years of thrift by backing a €750 billion ($887 billion) European Union recovery fund and, like France, will maintain its own national job retention and job creation program throughout 2021. By contrast, the United Kingdom’s chancellor of the exchequer, Rishi Sunak, has fallen behind the curve. Back in March, many expected that Britain would experience a V-shaped recovery. As this prospect faded, it became clear that Sunak’s rescue operation needed to be matched with a viable recovery plan. The consensus view is that both the UK and the global economy will be smaller in 2021 than they were in 2019. The International Monetary Fund predicts that the global economy will be 6.5% smaller than was forecast before the COVID-19 crisis, with a legacy of unemployment at least double the pre-pandemic norm. These gloomier forecasts have prompted international calls for the reinstatement of active fiscal policy, with the IMF urging rich-country governments to start large public investment programs. In its latest Fiscal Monitor, the Fund says that increasing public investment by 1% of GDP could boost GDP by 2.7%, private investment by 10%, and employment by 1.2%. The IMF’s call to action is particularly important, because the Fund was a champion of fiscal

retrenchment during the 200809 global financial crisis, despite the obvious need for stimulus. Its earlier macroeconomic model, like those of most other economists and policymakers at that time, was based on the flawed theory that market economies have a natural tendency to reach full employment. This ignored the truth, most persuasively articulated by John Maynard Keynes, that in the absence of government stimulus, economies can remain naturally stuck in recession for a long time. The Bank of England, too, has changed its tune. The BOE is about to inject an additional £150 billion ($198 billion) into the UK economy, in addition to the more than £200 billion it already has pumped out in 2020, and now realizes that it cannot do all the heavy lifting. Businesses will not invest, no matter how low the cost of capital, until they see a market. That is why the BOE has now joined the US Federal Reserve and the European Central Bank in calling for fiscal stimulus. Before COVID-19, monetary policy seemed to be the only game in town. Now, if we are to avoid mass unemployment and the consequent loss of demand in the economy, job creation must become the overriding priority after the lockdown. To its credit, the UK government brought forward £8 billion in infrastructure spending this past summer. But that is a mere fraction of what is needed. The government is now frontloading its £40 billion, five-year investment plan into the next two and a half years, and giving priority to big environmental projects and social housing. Retrofitting homes and local amenities could quickly create many jobs, with immediate multiplier effects.

Regional and local job and training schemes are essential to the longer-term task of reallocating work and skills toward the labor market of the future. The lesson of the UK’s 1998 New Deal for Young People and the 2009 Future Jobs Fund is that such programs must offer not only training and work experience but also assistance with job searches and incentives for employers to hire people on a permanent basis. We estimate that one million young Britons under the age of 25 are neither working nor in training or education. But the government’s Kickstart job-creation scheme, which was launched belatedly earlier this month, has offered job placements to young people only for six-month periods. The government expected that Kickstart would secure placements for 300,000 young people, but perhaps only around 100,000 will be enrolled in the scheme by the end of 2020. Ministers assumed that 5% of UK employers would take on young people, but outside of the retail and logistics sectors, thousands of firms are instead planning redundancies and will almost certainly not offer employment on anything like the hoped-for scale in the coming months. If we are to assist the other 900,000 or so under-25s in need of help and create the estimated 1.5 million youth placements that will be required over the next year, the public sector will have to become the employer of last resort. So, rather than passively responding to a rise in unemployment, fiscal policy should aim to replace Karl Marx’s “reserve army of the unemployed” with a buffer stock of state-supported jobs and training schemes that expands or

contracts with the business cycle. What we need above all from UK policymakers is an updated full-employment commitment in the spirit of Keynes and US President Franklin D. Roosevelt. An essential condition for this is the coordination of monetary and fiscal policy. The BOE should retain its anti-inflation mandate, but policymakers should not use this to cut off necessary fiscal stimulus. Earlier this month, the BOE echoed then-ECB President Mario Draghi’s famous 2012 pledge to save the euro by stating that it “stands ready to take whatever additional action is necessary” to boost the economy. To boost the credibility of such forward guidance, the government could give the BOE a dual mandate to fight both inflation and unemployment, while the bank could state that it will not tighten monetary policy until unemployment falls below its pre-crisis level of 4%. A successful rollout of Pfizer’s new COVID-19 vaccine (and possibly others) could return life to a semblance of normality by next spring. But even if the health crisis recedes, the unemployment crisis will remain. UK policymakers must act now to avert a lost decade – if not a lost generation – of growth. About the authors Gordon Brown is a former Prime Minister and Chancellor of the Exchequer of the United Kingdom, is United Nations Special Envoy for Global Education and Chair of the International Commission on Financing Global Education Opportunity. Robert Skidelsky, is a member of the British House of Lords, is Professor Emeritus of Political Economy at Warwick University.

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MONDAY NOVEMBER 16, 2020

Remote work has built – rather than broken – trust among colleagues. Here’s how

he COVID-19 crisis has forced a massive shift towards remote work. What are the implications of this shift for trust in the workplace? Such trust plays a crucial role in how we coordinate, cooperate, reciprocate, and respond to risk and uncertainty. So, just as the need for trust in the workplace is heightened by the severe uncertainty wrought by COVID-19, the massive shift towards remote work may undermine this trust. This concern is shared by many. A simple search on the social media platform LinkedIn results in over 70,000 posts about trust and remote work. Numerous companies are trying to respond. Some are seeking to instil confidence in employees that they are trusted. Others are increasing surveillance as a mechanism to control their workforce from afar. An underlying premise is that remote work threatens trust in the workplace. But there are reasons to believe that remote work may actually help build trust, too. In their seminal paper on trust in organisational settings, management and organisational psychology scholars Roger Mayer, James Davis and David Schoorman identified three pillars that inform how we assess others’ trustworthiness: their ability (skills to successfully conduct a task in a given domain), their benevolence (having good

intentions), and their integrity (having acceptable principles and values). Each has been affected by our collective shift to remote work. Remote work has enabled us to have a new-found appreciation for skill acquisition, particularly under pressure. We have been put in a situation that enables us to more readily display our good intentions. Finally and most importantly, we witness the manifestations of our shared values in a more transparent way. All of which contribute to increase our trust. Remote work and trustworthiness Turning first to ability. Many of us have had to shift to online modes of teaching, facilitating, consulting, managing, coaching and workshopping. This brings a new appreciation for the effort and dedication it has taken to learn new skills in such a short time, and under challenging circumstances. Something as simple as being able to see others (albeit virtually) struggle to run a new software on their device for this first time, while trying to keep the flow of the meeting going, gives more malleability to our perception of what it means to have ‘domain specific knowledge’. Many of us have become more empathetic towards not getting things right the first or second time around. That might not

necessarily negate our trust in our colleagues’ ability. Then there’s benevolence, or assessing others’ intention. This is surely not easy in a virtual space? Not so. One thing we have come to appreciate during these difficult times is the need for connection – and the feeling that we are a part of something. With all the obstacles that have been put in our way during these past months, signalling that we have good intentions towards our colleagues could have been as simple as ‘showing up’. Colleagues are showing up in meetings from their homes, despite diverse personal challenges such as homeschooling or caring for elderly parents. This is often fostering empathy and a shared sense of mutual ‘good intentions’. Lastly, to the question of integrity. We struggle to trust someone when we don’t align with their values and principles. When interaction with our colleagues becomes limited both in scope and domain, it’s difficult to assess and interpret what their values are, and how deeply they are held. But our struggles with maintaining our work-life sanity have made something clear, and that is, we have more values in common than we think. Generally we have shown that we prioritise health over wealth, love and connection over competition, well-being of family and loved ones over personal gains, hope

over despair, resilience over resignation, and much more, as evidenced by the Dutch historian and man who famously confronted billionaires for tax evasion at the Davos summit in 2019, Rutger Bregman. Bregman’s tribute to our better nature contends that human nature is, at its core, decent and good. And in times of turbulence and collective challenge, that decency reveals itself even more. The current circumstances have created an opportunity that would not have been there otherwise. For example, during our virtual meetings – whether cameras are on or off – we have shown and seen vulnerability, prioritisation and a display of core values that were unlikely to have been evident in normal office settings. Tapping into these shared values can have positive and lasting effects on how we maintain and develop trust with our colleagues in our workplaces. On a broader level, trust has been shown to be in decline at a national, institutional and organisational level. But in our day-to-day lives, on the personal level, we have an opportunity to build stronger trusting relationships that can ultimately permeate our organisations, institutions and our nation states. COVID-19 may have posed a threat to this trust, but it has also provided ample opportunity and we must not lose sight of this. The Conversation

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