Business24 Newspaper 23rd November, 2020 by Business24 Online

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MONDAY NOVEMBER 23, 2020

NO. B24 / 130 | NEWS FOR BUSINESS LEADERS

MONDAY NOVEMBER 23, 2020

Terkper disputes claims of frail legacy ...as race to Jubilee House heats up

Soya market gets boost with GH¢1m injection By Joshua Worlasi Amlanu macjosh1922@gmail.com

hana’s soya market has received a boost from the signing of a partnership agreement between the Ghana Commodity Exchange (GCX) and RDF Ghana, a development finance institution. Cont’d on page 3

Former Finance Minister Seth Terkper believes the previous NDC administration left behind a strong legacy

By Nii Annerquaye Abbey annerquaye@gmail.com

ormer Finance Minister Seth Terkper says claims by the governing New Patriotic Party that it inherited a troubled economy are not factual, but that the facts show the opposition National Democratic Congress

to be better managers of the economy. The former Finance Minister told journalists that over the last four years, the rate of debt accumulation has increased despite the government touting much lower fiscal deficits compared to those of the previous administration. “If your deficit is low, then

your debt should be low. It shouldn’t be increasing. The first problem that started to arise was showing a lower deficit—because if you check the financing, you are borrowing to finance the deficit so your debt should not be going up,” he said. Cont’d on page 2

Medical tourism has huge economic prospects—health expert

FDA’s PLS initiative creates employment for 56 SMEs

he Food and Drugs Authority (FDA), through its Progressive Licensing Scheme (PLS) initiative launched in July this year, has built the capacity of 56 small-scale and cottage food processing facilities to generate employment, earn income and thrive their businesses. The PLS is a certification mechanism aimed at supporting the cottage industry in Ghana to meet the FDA’s required standards. Cont’d on page 3

Inside

ECONOMIC INDICATORS EXCHANGE RATE (INT. RATE)

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 23, 2020

Editorial

Deal with IPPs hangover

arely four years ago, the country was facing a debilitating power crisis with businesses practically on their knees. Through a collaboration between multiple stakeholders such as the independent power producers, the problem was largely resolved. But dealing with a problem of such magnitude was bound to be costly and rightly so with the IPPs needing to be paid for services rendered. Given the widespread inefficiencies in the power sector, it is emerging that debt is fast accruing to these private power generators. Over the past few years, there has been a tussle between the IPPs and government over payment for power generated -- the cost of which runs into several billions of Ghana cedis. According to the Chamber of Independent Power Producers,

Distributors and Bulk Consumers (CIPDiB), the umbrella group of these players, government only recently paid the power producers only 40 percent of power invoices on a monthly basis, a situation they describe as inadequate to sustain their operations. The chamber said members have had to resort to loans to keep their operations going. It added, however, that their debt service obligations have also become unsustainable, hence their demand for prompt payment of overdue invoices to the tune of US$1.44bn as at September this year. The chamber last week notified the Ghana Grid Company (GRIDCo) and other power utilities of the planned shutdown of IPPs’ plants until government clears 80 percent of the debt owed. “This is against the backdrop of the recent US$1bn Eurobond

issue which we expected to be used to pay these outstanding invoices. The chamber has been agitating for the payment of these outstanding invoices for some time now. It is lack of tangible progress by way of payment which compels us to have to inform the public of the increasing difficulty in our members keeping the lights on,” the chamber president, Elikplim Kwabla Apetorgbor, said. While the government has said it pays US$500m every year for electricity it does not use, because of excess power contracted from IPPs on take-orpay terms, it is instructive that government does everything within its power to settle its obligations. This paper believes that there is the need for government to constantly be at the table to discuss any challenges in order to forestall the country slipping into darkness.

Terkper disputes claims of frail legacy ...as race to Jubilee House heats up Continued from cover According to Mr. Terkper, the government, in its attempt to paint a picture of exceptional performance in reining in the deficit, has excluded exceptional expenditure such as the cost of the financial and energy sector bailouts. He added, however, that regardless of their exclusion from the computation of the deficit, these expenditures had to be financed, creating a larger public debt while creating the perception of a lower fiscal deficit. Finance Minister Ken OforiAtta, in his mid-year budget, projected that the country’s deficit should reach double digits this year on account of the devastating effects of the Covid-19 pandemic, with the debt-to-GDP ratio expected to end the year in

excess of 70 percent. The Former Finance Minister argued that while the pandemic has brought its own challenges, the effects on the economy have been exaggerated, while the real underlying problem of mismanagement which caused the costly banking sector crisis is being concealed. Mr. Terkper stated that before his administration left power, the Energy Sector Levies Act (ESLA) had already been conceived, and he questioned why the government did use the proceeds from the ESLA to bail out the distressed banks which were exposed to the energy sector during the power crisis. Oil sector In terms of oil revenue, for the greater part of the John Mahamaled administration, only the

Jubilee Field contributed to the government’s coffers. But Mr. Terkper argued that even with one oil field, the Mahama administration contributed more to the economy in terms of transfers to the petroleum funds, leaving behind an infrastructure fund created with proceeds from the oil revenue as well as funds to retire some outstanding debts. “Despite getting less oil revenue, the Mills-Mahama administrations put in more money for the utilisation of the statutory funds,” Mr. Terkper said. The former Finance Minister stated that government’s response to the pandemic would have been weaker but for measures such as the creation of the Ghana Stabilisation Fund and Ghana Infrastructure Investment Fund by the previous administration.

News

MONDAY NOVEMBER 23, 2020

Soya market gets boost with GH¢1m injection Continued from cover Under the partnership, RDF is providing a GH¢1m dedicated credit line to selected brokers to settle farmers who need immediate cash for commodities they deposit into a GCXdesignated warehouse. The partnership aims to provide a ready market for smallholder farmers while improving their incomes and standards of living. It includes an option to scale up to cover other agricultural commodities. A recent study by the Soybean Innovation Lab (SIL) found that soybean prices in Ghana compare quite favorably to international prices and are consistent with supply and demand factors in the

country. However, the researchers noted that there is significant seasonality in production due to insufficient storage, poor road infrastructure, and challenging logistics during the harvest period. As at 2017, the country had

about 20 percent self-sufficiency in soya production. Earlier this year, GCX partnered ARB APEX Bank, which provides services to rural and community banks, to advance short-term loans to farmers through warehouse receipts.

This meant that smallholder farmers could use their commodities in storage as collateral to obtain short-term loans from partner banks. So far, under the warehouse receipt financing model, GCX has engaged about 15 rural and community banks across the country, a step further into developing agricultural finance. According to the exchange, smallholder farmers can also benefit from its other valueaddition services, such as moisture testing, cleaning, drying, grading, re-bagging, and storage—all aimed at improving the marketing qualities of their harvest so they can attract premium prices.

FDA’s PLS initiative creates employment for 56 SMEs Continued from cover The certification is a testament that products meet the required health, safety and hygienic standards of major international and local retail shops in the country. Such products include local spices, fruit juice, peanut products, pepper sauce (shito) among several others. The PLS, which has three licensing stages categorised as Pink, Yellow and Green, seeks to support the local food industry to retail their products in major grocery shops and supermarkets in Ghana. A key PLS goal is to have major grocery shops and supermarkets retailing at least 60 percent of made in Ghana food products in their shops. The FDA, through the PLS initiative, is certain that the fortunes of cottage food industries will improve in the coming years. Following the launch of the PLS initiative, six retail centres Economic Distribution (ECODI), Koala Shopping Center, Melcom Limited, Shoprite Ghana Limited, Marina Retail Center Limited and Palace Mall— have all endorsed the initiative and pledged their support and readiness to stock their shops with Made in Ghana products manufactured by PSL license holders. While the cottage food industry

plays an important role in the country’s economy, the FDA recognises that it is important for the industry to be offered greater opportunities to market their products and share in the benefits of economic growth. It is instructive to note that the 2019 statistics from FDA market surveillance showed that 661 locally manufactured products in the Greater Accra Region alone were not registered as per the Public Health Act 851 (2012) but were on the market. This is primarily because majority of cottage and smallscale units, according to the FDA, have limited resources for effective technological inputs and are ill-equipped to deal with food safety and quality in a sustained manner, and therefore are unlikely to succeed with registering their products. This is evidenced by statistics from FDA which indicate that out of 600 facility license applications received between 2017 and 2019, 50 percent were unsuccessful in their registration processes. Some key reasons for the unsuccessful applications by these facilities include the following: (i) the cost of laboratory testing of products which most of these facilities cannot afford; (ii) inadequate knowledge of required processes and documentation and (iii) the inability of many cottage

/ small scale to meet facility establishment requirements. The PLS was launched to help the cottage industry to overcome these challenges and expand their market share. “This is why the Government of Ghana, through the FDA has developed a new system of Progressive Licensing to support these small units, as they provide employment and generate income for their operators. These cottage and small-scale food processors need to be offered greater opportunities to market their products and share in the benefits of economic growth. Similarly, they also serve as hubs for thriving local industries, which would drive broad-based

economic growth and structural transformation of the economy as a whole,” Mrs. Delese Mimi Darko, Chief Executive of the FDA explained. “I had started product registration but it got to a point where getting financial aid for the registration had become difficult. I registered with the Ghana Enterprising Agency (GEA) and got a call from the FDA. My facility and products were registered without me having to pay anything. The FDA Officers were very professional in their work and refused the token of appreciation that I offered to them,” a beneficiary of the initiative, Annes Perfections, said.

Mrs. Delese Mimi Darko, FDA, Chief Executive Officer

MONDAY NOVEMBER 23, 2020

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News

MONDAY NOVEMBER 23, 2020

Medical tourism has huge economic prospects—health expert

IPPs say only 40% of invoices IPPs’ plants until government being settled ofclears 80 percent of the debt By Benson AFFUL affulbenson@gmail.com

he Chamber of Independent Power Producers, Distributors and Bulk Consumers (CIPDiB) says government currently pays independent power producers (IPPs) only 40 percent of power invoices on a monthly basis, a situation they describe as inadequate to sustain their operations. The chamber said members have had to resort to loans to keep their operations going. It added, however, that their debt service obligations have also become unsustainable, hence their demand for prompt payment of overdue invoices to the tune of US$1.44bn as at September this year. The chamber last week notified the Ghana Grid Company (GRIDCo) and other power utilities of the planned shutdown

owed. “This is against the backdrop of the recent US$1bn Eurobond issue which we expected to be used to pay these outstanding invoices. The chamber has been agitating for the payment of these outstanding invoices for some time now. It is lack of tangible progress by way of payment which compels us to have to inform the public of the increasing difficulty in our members keeping the lights on,” the chamber president, Elikplim Kwabla Apetorgbor, said. The government has said it pays US$500m every year for electricity it does not use, because of excess power contracted from IPPs on take-or-pay terms. Since 2019, the government has been engaging with IPPs, under the auspices of the Energy Sector Recovery Programme, to renegotiate power purchase agreements, include tariffs and capacity charges.

he resident doctor at the newly-established Riva Swiss Hospital, Dr. Michael Amfo Afriyie, has urged the government to commit to resourcing health facilities across the country in order to leverage the tourism potential that comes with it. According to Dr. Afriyie, medical tourism can have a big impact on the Ghanaian economy if much attention is paid to it. Speaking in an interview at the opening of the first-class health facility, located at Adadientem in the Ejisu Municipality of the Ashanti Region, Dr. Afriyie said medical tourism is no longer about cheaper procedures and holiday trips, but also about the quality of doctors and technology, as well as care models. The hospital, he said, will cater to the health needs of the community and lessen the congestion at Komfo Anokye, the major referral hospital for the northern sector. “This facility has been set up to not only take care of the sick, but also tap into other economic prospects such as medical tourism, which l believe government can tap into to reap its benefits,” he stated. The 30-bed-capacity facility is stocked with state-of-theart medical equipment that is capable of treating and

diagnosing several ailments. Some of these modern machines include C-arm Xray machine for orthopaedic surgeries, Storz arthroscopy machine, state-ofthe-art laparoscopy machines, and 4D multipurpose ultrasound machines. Dr. Afriyie observed that these modern equipment are mostly available at the nation’s two teaching hospitals, Korle-Bu and Komfo Anokye, only, adding that, “having such machines here in this community goes to prove the sort of healthcare and service we will be providing to patients home and abroad.” Medical tourism involves people travelling abroad to obtain medical treatment. In the past, this usually referred to those who travelled from less-developed countries to major medical centres in highly-developed countries for treatment unavailable at home. Senior ornithologist at the Ministry of Health, Dr. Baffour Awuah, while commending the establishment of the facility, noted that such support from the private sector will contribute to the attainment of universal health coverage. He said the government is fully committed to realising this goal and is already pursuing a number of programmes towards this end, including enhancing the health insurance system.

Deputy Minister of Trade, Robert Ahomka Lindsay, interacting with medical staff of Riva Swiss Hospital while other dignitaries look on.

Let’s operationalise the principles of a single market - Trade Minister

lan Kyerematen, the Minister of Trade and Industry, says countries need to move beyond the narrative of a continental free trade area to operationalizing the principles of a single market and ensuring that trading is commercially and beneficially carried out. “Let’s try and go beyond the rhetoric and interrogate the conditions that will bring us to the point that we can confidently see that the AfCFTA is implemented,” he said at the Council of Ministers meeting in Accra at the weekend. The 3rd meeting of the African Continental Free Trade Area Council of Ministers discussed pertinent issues critical for the start of trading in January 2021. Mr Kyerematen said for the

continent to benefit from the single market, there was the urgent need to create awareness among the regulatory authorities, including customs of all state parties, economic operators, including producers and exporters as well as the logistics industry in the various countries. “These are the agents that would make AfCFTA work on the ground and if there is no awareness, we cannot harvest the benefits,” the Minister said. He also called for the development of concrete ways to enable the regulatory authorities and economic operators to interface with the systems that were being established under the AfCFTA and to agree on rules of origin, the customs facilities and procedures for export and

import for goods. He urged member states to continue to commit themselves to laying the foundation for a single continental market for Africa. “I am fully convinced that the coming into being of the African Continental Free Trade Area is one of the most important decisions taken by the African Union. For us in Ghana, we recognize that an increase in trade is the surest way to deepen regional integration in Africa,” Mr. Kyerematen said. On her part, Mrs Shirley Ayorkor Botchwey, the Minister for Foreign Affairs and Regional Integration, reiterated Ghana’s unwavering commitment to the implementation of the AfCFTA for the economic emancipation and transformation of the Continent.

She said the meeting presented the State Parties of the AFCFTA an opportunity to address issues concerning the operationalization of the customs provisions in the AfCFTA Agreement; the Protocol on Trade in Goods and related annexes on Tariff Reduction Schedules, Rules of Origin, Trade Facilitation, Transit and other matters related to border clearance. “Progress on these pertinent matters will be crucial to the start of trading and the creation of the single African market for trade, investment and the socio-economic transformation of the Continent as well as the realization of the Agenda 2063,” she said. GNA

MONDAY NOVEMBER 23, 2020

News

MONDAY NOVEMBER 23, 2020

COCOBOD CEO urges farmers to enrol on the cocoa management system

he Chief Executive of Ghana Cocoa Board (COCOBOD), Joseph Boahen Aidoo has urged cocoa farmers at Wassa Amenfi in the Western South region to enrol on the Cocoa Management System (CMS) being spearheaded by the Board to improve operations within the cocoa sector. The CMS Project was recently launched to capture a comprehensive and accurate data base on cocoa farmers in the country to facilitate and enhance planning in the cocoa sub-sector. Hon Aidoo was speaking at the inauguration of the Wassa Amenfi Cocoa Farmer’s Cooperative Union at Wassa Amenfi, where he inducted an eleven-member executive team into office for a two-year term. The Union, which is made up of 815 registered cooperatives from 207 communities within the Wassa Akropong Cocoa District, has foundation membership of 52,432 comprising 32,961 males and 19,471 females. Hon Aidoo applauded the farmers for joining forces to form the Union, which he said is in line with COCOBOD’s policy to encourage farmers to form cooperatives to enable them

Chief Executive of COCOBOD, Joseph Boahen Aidoo

easily access extension services and other inputs to assist them in their cocoa farming business. He urged the executives to exhibit servant leadership skills and serve the interests of their members. Hon Aidoo outlined the importance of the Cocoa Management System to the sector and urged all cocoa

farmers to register when the registration team visits their communities. He said the Government is determined to improve the fortunes of cocoa farmers in the country and stated that Productivity Enhancement Programmes like mass pruning, hand pollination, mass spraying, pilot irrigation scheme and

subsidised fertiliser supply to cocoa farmers are all part of initiatives by Government to that effect. He encouraged cocoa farmers to keep faith with the NPP Government as more farmer-friendly policies will be rolled out to enhance their livelihood. Hon Aidoo also educated the farmers on the Cocoa Rehabilitation Programme, and urged all with infected farms to allow treatment of the Cocoa Swollen Shoot Virus Disease. He announced that COCOBOD will support farmers to replace aged and moribund farms under the Rehabilitation Programmme. The Chairman of the Union, Nana K. Mortey said innovative policies like mass pruning, hand pollination and the subsidized fertilizer policy are yielding positive results within the sector and entreated Government to sustain such well-thought out interventions. The Omanhene of Wassa Amenfi Traditional Area and President of the Western Regional House Chiefs, Tetrete Okuamoah Sekyim II, who presided over the programme, advised the executives to be truthful and transparent in their activities in order to win the trust of their members, and also to help them achieve their

Ten start-ups selected for Agritech Investment Readiness Accelerator Program

ollowing a four-phase rigorous and competitive selection process, 10 dynamic and innovative Agritech startups have been selected to partake in the Agritech Investment Readiness Accelerator Program. The program is being hosted by Innohub in partnership with the Tech Entrepreneurship Initiative, ‘Make-IT in Africa’, (implemented by Deutsche für Gesellschaft Internationale Zusammenarbeit (GIZ) on behalf of the Federal Ministry for Economic Cooperation and Development, Wangara Green Ventures, ABSA Bank Plc and Accra Angels Network. Many startups appear to have strong growth potential but will inevitably reach a point where future growth requires external funding. A great fraction of these startups are unable to raise money from investors because

they are not investor ready and lack the capacity to appeal to investors. The selected Agribusiness will be taken through a structured 8-week Accelerator program and work closely with experienced technical Business Coaches to help the Agribusinesses to be investor ready. The accelerator will help assess the maturity level of startups, as well as evaluate and increase their investment attractiveness. Each startup will also be supported logistically with a laptop as well as licence to a globally used platform that supports them to build their investment case. The start-ups are currently leveraging the use of technology to augment their business operations and models to help address everyday problems in agriculture including manufacturing, crop farming,

farm machinery, food production, pesticides, mapping, marketing and public relations . They will also be given a oneyear post acceleration capital raise and coaching support. The program will use the blended learning approach with a focus on providing participating agribusinesses with the support to meet three clear fundamentals; Strategize to assess their investment readiness and define their investment ask; Target the kind of capital and investors suited to each unique venture; and cultivating investor relationships and agreeing on deal terms that matter. The participating start-ups are AB Precision Solutions, which provides precision agricultural solutions to farmers as a service, including the deployment of drones to improve yields and reduce post-harvest losses;

AF Map Works which uses GIS software such as ArcGIS, ERDAS, and Global Mapper for data analysis mainly rainfall or temperatures for a designated location to build up geographic maps indicating the changes in vegetation and weather condition in a certain period of time. The rest are Agro Innova which does research to identify challenges faced by smallholder farmers in Ghana and develops farmer-centred innovation solutions which can easily be adopted by these farmers; AIScarecrow; Agro Kings; Commodity Network; Eazz Foods; and Grow for Me. The remaining firms are SAYeTECH which combines the advantages of IoT and Artificial Intelligence with robust hardware, ideally suited for smallholder farms in Africa and WamiAgro which offers input supply in the form of seeds, fertilizers, and pesticides.

MONDAY NOVEMBER 23, 2020

Aviation

MONDAY NOVEMBER 23, 2020

FAA approve resumption of 737 MAX operations

fter nearly two years of being grounded following two deadly crashes, the U.S. Federal Aviation Administration has cleared Boeing’s 737 Max for flight. This means the move will allow airlines that are under the FAA’s jurisdiction, including those in the U.S., to take the steps necessary to resume service and Boeing to begin making deliveries. An Airworthiness Directive issued by the FAA spells out the requirements that must be met before U.S. carriers can resume service, including installing software enhancements, completing wire separation modifications, conducting pilot training and accomplishing thorough de-preservation activities that will ensure the aircraft are ready for service. “The FAA’s directive is an important milestone,” said Stan Deal, president and chief executive officer of Boeing Commercial Airplanes. “We will continue to work with regulators around the world and our customers to return the aircraft back into service worldwide.” The news will not convince relatives of people who died in the crashes of the safety of the Max, with many believing Boeing of hiding critical design features from the FAA and say

the company tried to fix the tendency for the plane’s nose to tip up with software that was implicated in both crashes. “The flying public should avoid the Max,” said Michael Stumo, whose 24-year-old daughter died in the second crash. “Change your flight. This is still a more dangerous aircraft than other modern planes.” However, Boeing said that throughout the past 20 months, the company has worked closely with airlines, providing them with detailed recommendations regarding long-term storage and ensuring their input was part of the effort to safely return the

aircraft to service. “We will never forget the lives lost in the two tragic accidents that led to the decision to suspend operations,” said David Calhoun, chief executive officer of The Boeing Company. “These events and the lessons we have learned as a result have reshaped our company and further focused our attention on our core values of safety, quality and integrity.” In addition to changes made to the aircraft and pilot training, Boeing said it has taken three important steps to strengthen its focus on safety and quality. Organisational Alignment:

More than 50,000 engineers have been brought together in a single organization that includes a new Product & Services Safety unit, unifying safety responsibilities across the company. Cultural Focus: Engineers have been further empowered to improve safety and quality. The company is identifying, diagnosing and resolving issues with a higher level of transparency and immediacy. Process Enhancements: By adopting next-generation design processes, the company is enabling greater levels of firsttime quality.

Ethiopian wins Outstanding Crisis Leadership award

thiopian Airlines Group has won the ‘Overall Excellence for Outstanding Crisis Leadership 2020 Award’ from Global Finance magazine. The award recognises companies that went above and beyond in responding to the global pandemic crisis and

in assisting their customers, protecting their employees and providing critical support to society at large. Ethiopian Group CEO Tewolde GebreMariam said: “We are glad to have won the ‘Overall Excellence for Outstanding Crisis Leadership 2020 Award’

Ethiopian Airlines wins ‘Overall Excellence for Outstanding Crisis Leadership 2020 Award’

which recognises our distinct capabilities of successful management of multiple crises taking place simultaneously like a perfect storm. During the global spread of the COVID-19 pandemic which resulted in panic, fear and hopelessness in the industry; we

have demonstrated resilience, agility and speed of decision making and special competency in fast redeployment of organizational resources to our Cargo division to airlift life-saving COVID-19 PPE and medical supplies.” “We have reconfigured 25 passenger airplanes for cargo only flights and we also availed the remaining passenger airplanes for repatriation of stranded people to connect with their loved ones back home. As a socially responsible airline, we stood in solidarity with the world during the unprecedented crisis and served communities around the globe to cope with the COVID-19 pandemic challenges,” he said. “We are ready to repeat the remarkable and globally recognised success in leading the fast delivery of life-saving PPE’s with similar delivery speed and professional handling during the forthcoming global distribution of the COVID-19 vaccine,” he added.

MONDAY NOVEMBER 23, 2020

Feature

MONDAY NOVEMBER 23, 2020

Seed value chain actors sensitized on guidelines for implementing Seed Legislation in Ghana

Mr. Forster Boateng AGRA Regional Head, West Africa addresses participants at the Seed Legislation Workshop

he Alliance for a Green Revolution in Africa (AGRA) in collaboration with USAID has organized a twoday workshop on “Development of Operational Guidelines for Seed Legislation in Ghana” for over 30 seed value chain actors at Akosombo, Eastern Region from 11 – 12 November, 2020. The workshop forms part of support offered by AGRA and the USAID under the Partnership for Inclusive Agricultural Transformation in Africa (PIATA) to the Government of Ghana to develop a sustainable private sector led seed system for the country. Participants at the two-day workshop reviewed National Seed Legislation Sensitization and Implementation Guidelines prepared by Mr. Josiah Wobil, an International Seed Consultant and made recommendations for the way forward. The participants were drawn from the Ministry of Food and Agriculture (MoFA),

National Seed Traders Association of Ghana (NASTAG), Seed Producers Association of Ghana, West Africa Centre for Crop Improvement, Crop Research Institute, Savannah Agricultural Research Institute, the Farmers Organization Network of Ghana and the National Agricultural Seeds Council (NASC), Nigeria. Mr. Thomas Havor, President of NASTAG said it is important for all stakeholders to understand the seed legislation and make significant contributions to improve the industry. “Mistakes in industry are due to the lack of understanding. The workshop has given us the opportunity to understand the seed legislation and make it easy for us to improve our operations to benefit all – seed producers, seed traders, farmers and food consumers.” Mr. Folarin Sunday Okelola, Seed System Specialist from NASC gave an overview of the Nigerian seed system and shared experience on seed production

A cross-section of participants at the Seed Legislation Workshop

and marketing in his country. He expressed NASC’s willingness to support Ghana with the operation of a National Seed Tracker for real time tracking of seed production and trade, quality management and e-certification of seed producers as well as an electronic seed authentication system (SEEDCODEX) which enables farmers and other seed users to instantly verify the authenticity and genuineness of seed before purchase and use. Mr. Richard Twumasi-Ankrah, Coordinator of the Government of Ghana’s Planting for Food and Jobs (PFJ) Programme delivered a statement on behalf of MoFA. He said, the use of quality seed is of great importance to the PFJ which is a strategic means through which MoFA is promoting farmers’ access to and use of certified seeds. He expressed MoFA’s appreciation to AGRA and its partners for their continuous support to the seed sector in Ghana. The participants after working in groups on the topical areas of Research and Variety Development; Seed Production; Marketing and Utilization; Oversight, Regulatory and Coordination; Budgetary Support, Mobilization and Sustainability adopted a set of recommendations to be implemented by relevant authorities in the seed sector. The recommendations include the establishment of a Seed Development Fund; a National Awareness Campaign; development of technical papers on Strengthening Seed Quality

Control and Certification, Strengthening the National Seed Council; Enhancing Research, Variety Release and Registration Process. Delivering the closing remarks, Mr. Forster Boateng, AGRA Regional Head for West Africa urged stakeholders in the seed sector to “give a last push” to the legislation to see development in the country’s seed sector. He said for the next 10 years, AGRA’s interventions in Ghana will focus on building momentum for a sustainable Inclusive Agricultural Transformation (IAT) through strategic partnerships. About AGRA: Established in 2006, AGRA is an African-led, Africa-based and farmer-centered institution working to put smallholder farmers at the center of the continent’s growing economy by transforming their farming from a solitary struggle to survive to a business that thrives. Working in collaboration with our partners including African governments, researchers, development partners, the private sector and civil society AGRA’s work primarily focuses on smallholder farmers – men and women who typically cultivate staple crops on two hectares or less. In the new strategy for 2017-2021, AGRA is supporting 11 African countries and 30 million smallholder farm households (150 million individuals) to increase their incomes and improve their food security. For more information, visit www.agra.org, Twitter, Facebook, LinkedIn and YouTube

MONDAY NOVEMBER 23, 2020

Feature / News

MONDAY NOVEMBER 23, 2020

Making the most of your business cards

his post will give you some ideas about how to get more out of that most underused of marketing materials: your business card. First of all, does it contain both your LinkedIn profile URL and your Twitter handle? You need to give your contact details through as many channels as possible. Some people are Twitter addicts and will follow you immediately if the relevant details are on your card. Others conduct most of their social networking through LinkedIn – don’t alienate them either. Of course, if you would rather watch paint dry all afternoon than spend a single minute on Twitter, don’t bother signing up for an account just to have a Twitter ID on your business card.

Wondering how on earth you are going to fit this information onto your card? If your fax number is the same as your office number, why not amalgamate them on the same line like this: tel/fax? You may want to even question how relevant a fax number even is to your business today. Next, does your business card have a call to action? If you have room for this, you should definitely include one. However good your free offer sounded at the Business for Breakfast meeting, the person who took your card will have been inundated with jobs to do, calls to make and people to see throughout the rest of the day. If the call to action is on your card, it could jog their memory when they are organizing their list of

contacts. Finally, compare it to other business cards you collect – does it stand out visually from the crowd? Can you get it redesigned to have more impact? Any departure from the normal rectangle shape is always a good idea – but don’t make it too big. 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

USB appoints Prof Mark Smith from Grenoble, France as its new Director

he University of Stellenbosch Business School has appointed Prof Mark Smith (49), previously the Dean of Faculty at the Grenoble Ecole de Management in Grenoble, France, as its new Director. Prof Smith is a seasoned academic and highly acclaimed researcher who is skilled in the dissemination of academic knowledge. Over several years, he has published in or made contributions to well over 70 academic books and journals. His research areas include youth employment policy, the integration of ethics across the business world, gender and the labour market, the role of business in social innovation, and the transition from education to employment. Hi experience includes leading over 160 permanent academics and in his previous role, he was Director of one of the largest European doctoral schools for management sciences. Says Prof Ingrid Woolard, Dean of the Faculty of Economic and Management Sciences at Stellenbosch University, “Prof Smith brings with him a wealth of knowledge and experience in areas that align well with USB’s academic focus areas and vision for the school. USB, its faculty, students and alumni operate in a globally connected world. Fresh perspectives from another world region will help to ensure that we, and our graduates, remain relevant.” USB forms part of Stellenbosch University, the leading research university in

Africa. Prof Smith has considerable experience in leading large-scale research projects for, among others, the European Commission and global foundations. These investigations cover topics such as pay transparency, youth labour, women on executive boards, and the improvement of living and working conditions. According to Prof Woolard, this will serve USB well as closer collaboration with the business sector and commissioned research are strategically important to the business school. Prof Smith is an active member of the Responsible Research in Business and Management

(RRBM) initiative led by the European Foundation for Management Development (EFMD) and the USA-based Association to Advance Collegiate Schools of Business (AACSB). He is also an expert advisor to various European organisations and foundations. Both USB and Prof Smith’s current school hold the three major international accreditations, namely AACSB, EQUIS and AMBA. Says Prof Smith, “I am thrilled to be joining this leading tripleaccredited business school, recognised in Africa and worldwide for its commitment to promoting a societal impact via business research and education.

For me, the personal and professional challenge of coming to South Africa and contributing to Stellenbosch University’s vision to be the leading researchintensive university on the continent is very exciting”. Prof Smith has two children. He is passionate about the outdoors, enjoying running and cycling. He is also looking forward to sampling the rich cultural life of Cape Town and South Africa. CONTACT DETAILS Dr Marietjie van der Merwe USB Representative Marie@ globalnatives.com +230 606 2341 / +230 5 701 1362

MONDAY NOVEMBER 23, 2020

RESEARCH BRIEF II

17 November 2020

Third-party presidential and parliamentary candidates have higher prospects of winning votes in Northern Ghana; however, they need a minimum combined vote share of more than 3% to have a chance at influencing presidential elections in Ghana Outlook and implications • The performance of third-party presidential candidates has been on the decline over the past six electoral cycles: trendline analysis indicates third parties have been dropping an average of 31,000 votes per election from a base of about 365,000 votes since 1996. • Third parties need to gain a minimum combined vote share of more than 3% to have a chance at influencing presidential elections, sending it into a second round. • The likelihood of a presidential election going into a run-off or an incumbent losing depends on the combined impact of whether the incumbent or challenger is a new candidate; the incumbent or challenger is popular or charismatic; and if there is a popular third-party candidate. • Both third-party presidential and parliamentary candidates are more likely to perform better in the three Northern Regions than other parts of the country. • The number of candidates contesting as independent MPs as a proportion of the total parliamentary candidates has reduced since 2004. Likewise, their success rate has also significantly dropped. Also, there is no successful independent parliamentary candidate who is not connected to any of the two main parties (NPP and NDC). Ghana heads to the polls on 7 December to elect a president and 275 parliamentarians who will govern the country for the next four years (2021- 2024) under the Fourth Republic. The poll will, however, be taking place with the coronavirus (COVID-19) pandemic still looming and its potential economic fallout yet to be fully understood. This is particularly important, given that Ghana’s two main political parties, namely the National Democratic Congress (NDC) and the New Patriotic Party (NPP) have recently announced their manifestos as their “social contract” with citizens amidst what is expected to be a keenly contested election. In our first Research Brief, publicly released on 2 November, we examined patterns in regional voting preferences in Ghana and concluded that neither the NPP nor the NDC has a ‘permanent’ electoral advantage. This second research brief complements the first. More specifically, we examine the performance of independent parliamentary candidates and third-party presidential aspirants in Ghana using historical elections data from 1996 to 2016. This research brief is focused on exploring four (4) broad questions: (1) the overall performance of thirdparty presidential parties and the extent to which they serve as ‘kingmakers’; (2) which regions they are likely to perform better; (3) their success rate, which is measured as seats won per total candidates contesting; and (4) the impact of affiliation to the NPP or NDC on the likelihood of success. Finally, we finish off our analysis by proposing three (3) fundamental qualitative factors that, combined, are predictive of a presidential run-off or a defeat for an incumbent party these variables we call the ‘iRIS Keys’. Key Finding 1: The performance of third-party presidential candidates has been on the decline over the past six electoral cycles; trendline analysis indicates third parties have been dropping an average of 31,000 votes per election since 1996 from an average of about 365,000 votes between 1996 and 2016. As Figure 1 and Table 1 below indicates, third-party presidential

candidates have been performing abysmally in the presidential elections since 2000. The trendline indicates that third-parties have been losing on average about 31,000 votes between successive elections from an average of about 365,000 votes between 1996 and 2016. This indicates that Ghana’s third-parties now count only about 179,000 voters among their sympathizers, translating to only a potential vote share of 1.06% assuming all currently registered voters cast a ballot in the upcoming election. After increasing their share of the valid vote cast by 130% from 211,136 (3.0% of total valid votes cast) in 1996 to 485,441 (7.4% of total valid votes cast), third-parties have shed significant votes in the subsequent elections. Indeed, compared to 1996, their total vote gained was down on average by 47% between 2000-2004, 7% between 2004-2008 and 31% between 2008-2012. They, however, saw an average increase in votes by 18% between 2012-2016. On the other hand, both the NDC and NDC have grown their support base as the voter population has grown. For example, between 1996 and 2016 the NPP has been gaining an average of 592,000 votes between successive elections. The NDC, likewise, has also been gaining an average of 335,000 votes within the same period.

Key Finding 2: Third-party presidential and parliamentary candidates are more likely to perform relatively better in the three northern regions Despite the low overall performance of third-party candidates, our analysis shows a much more nuanced picture at the regional level. Our analysis shows that they are more likely to perform better in the three northern regions (Upper West, Upper East and the Northern Regions) as shown in Figures 2, 3 and 4. The data indicates that third parties have been polling an average of 11% of the valid votes cast in the Upper West and Upper East regions, and 6% in the Northern Region between 1996-2016. This compares with an average of 2.1% in the remaining eight (8) regions. We note that measuring performance by averaging the data from 1996 to 2016 may not be reflective of recent trends. Hence, the next set of analyses seeks to isolate recent performance by focusing on the 2016 elections data. This data shows that third parties won 4.8%, 5.8% and 2.6% of the total valid votes in Upper West, Upper East and the Northern Regions respectively, representing an average of 4.4% of the combined regional votes. CONTINUED ON PAGE 17

MONDAY NOVEMBER 23, 2020

CONTINUED FROM PAGE 15 In contrast, they averaged 1.6% of the combined regional votes in the remaining seven (7) regions. The trend is similar when one disaggregates the votes further to incorporate the six (6) newly created regions. Likewise, when it comes to independent parliamentary candidates, we find that they have a better chance of success in these northern regions. For example, a total of 17 independent parliamentary candidates contested for seats in the Upper West Region from 1996-2016 out of which 6% were successful -- measured as the number of independents who won as a percentage of total independent candidates. In the Northern and Upper East regions, the success rates were 6% (67 total independent MPs contesting) and 5% (17 total independent MPs contesting) respectively.

contesting every seat in each election cycle (see Table 2). The total parliamentary candidates contesting elections was 757 in 1996, 1,160 in 2000, 962 in 2004, 1,022 in 2008, 1,643 in 2012 and 1,233 in 2016 (Table 2). Of this number, the number of independent candidates was 53 in 1996, 58 in 2000, 125 in 2004, 92 in 2008, 115 in 2012 and 74 in 2016. However, the number of seats won by these candidates was relatively small – zero (0) in 1996 and 2016, four (4) in 2000 and 2008; one (1) in 2004 and three (3) in 2012. Table 2 also shows that the proportion of independent candidates, as a share of total parliamentary candidates, was 7% in 1996, 5% in 2000, 13% in 2004, 9% in 2008, 7% in 2012 and 6% in 2016 – representing an average of 8% from 1996-2016 (Figure 5). However, on the most important indicator – the success rate – the numbers have been disappointing. In 1996, none of the four (4) independent candidates who run was elected. Seven (7) per cent of candidates were successful in the 2000 election, and this success rate has since dropped to zero in the 2016 elections (Figure 6).

Key Finding 4: A significant majority of successful independent parliamentary candidates are affiliated to one of the two main parties, namely the NPP and NDC. Except for two (2) candidates whom we identified as having no political party affiliation, all the remaining ten (10) independent parliamentary candidates who have won their elections since 1996 are either affiliated to the NPP or the NPP. In essence, 83% or eight in ten successful parliamentary candidates are affiliated with one of two main parties. In other words, the likelihood of an independent candidate successfully winning a parliamentary seat is very small unless they are somewhat affiliated to either of the two parties. The connection of the largest share of independent candidates to the two main political parties suggests that the decision to run as an independent candidate may be triggered by internal party disagreements – most likely disagreements about who won at the primary contests. This ‘losing candidate’ problem as we call it, is however not confined to only party strongholds such as Ashanti, Eastern and Volta regions.

Key Finding 3: The number of independent parliamentary candidates, as a share of total parliamentary candidates, contesting has reduced from a high of 13% in 2004 to about 6% in 2016. Likewise, the success rate, which is the measure of the number of independents who won as a percentage of total independent candidates, has also dropped. Despite the overall number of seats in parliament increasing from 200 in 1996 to 275 in 2016, there has been a relatively stable average of four (4) parliamentary candidates

CONTINUED ON PAGE 19

MONDAY NOVEMBER 23, 2020

CONTINUED FROM PAGE 18 Key Finding 6: Whether an election will go into a run-off or an incumbent will lose, depends on three key qualitative variables: whether the incumbent or challenger is a new candidate; incumbent or challenger is popular or charismatic, and if there is a popular third-party candidate Based on our analysis of the underlying trends in the data, we propose three fundamental qualitative factors that are likely to indicate if there would be a presidential run-off or a defeat of the incumbent. These factors are outlined and discussed in the figure below. Whether the incumbent or challenger -- between the two main parties -- is a first-time candidate matter because history has shown that first-time

candidates have a relatively lower chance of winning on the first run. This was the case for then candidates John Kufour (NPP), John Atta-Mills (NDC) and Nana Akufo-Addo (NPP). Also, the popularity of the main challenger or any third-party candidate matters. In 2000, we saw how the combined effect of Mills being new on the presidential ticket, the relative popularity of Kufour, and the combined strengths of Edward Mahama, George Hagan, Goosie-Tanoh and Dan Lartey cost NDC the election. We saw a similar dynamic in 2008: Nana Addo was new on the ticket and relatively unpopular compared to Mills. This, in addition to the popularity of Paa Kwesi Nduom’s ‘yere se sam’ campaign, was enough to cause the defeat of the incumbent NPP.

Other iRIS Research Works

out of which we polled from 36 of them.

(1) Ghana 2020 Pre-Election Survey: iRIS Research Consortium just completed its Ghana pre-election opinion on the upcoming December elections. The emphasis of the poll was to gauge voting intents in the election. We also survey the favourability rating of the incumbent president Nana Akufo-Addo of the NPP and main opposition leader John Dramani Mahama of the NDC; the influence of the selection of the running mate and the performance rating of the government. The survey is a 2,640 respondent nationally representative and statistically weighted faceto-face survey from 36 (14 toss-ups, 12 lean NDC and ten lean NPP) identified swing constituencies/seats which are key to which party is likely to win the elections. The sample constituencies and sampling framework are based on a rigorous statistical framework that we have developed internally after several iterations. We have used this statistical framework to grade and rate every one of the 275 constituencies in Ghana, based on historical voting patterns and vote margins between the two main political parties – the NPP and NDC. This has been applied using constituency presidential voting data from 1996 to 2016 to statistically identify the safe, likely, lean and toss-up constituencies. We have identified 73 of such lean and toss-up constituencies,

(2) Ghana Development Indicators Tracker (G-DIT): The Ghana Development Indicators Tracker (G-DIT) is a free online dashboard that shows Ghana’s performance on various socioeconomic and governance indicators in the history of the Fourth Republic from 1993 to date. The dashboard has been developed from the perspective of an ordinary Ghanaian citizen who is confused on questions such as where we are, which political party has done what, and what impact have they created – for example, on the economy, education, health, infrastructure and energy, among others. Citizens can evaluate and see the relative performance of the political parties on over 100 indicators, clustered around three major themes. These are economy, finances and business environment; Public sector and governance and social sectors. Access the dashboard: www. irisresearchgroup.com/ghana-data- dashboard

Dr Musah Khalid mkhalid@irisresearchgroup.com Dr Theophilus Acheampong tacheampong@irisresearchgroup.com Dr John Osae-Kwapong josaekwapong@irisresearchgroup.com Contact iRIS Research Limited 6 Ashur Suites, North Legon Accra, Ghana, West Africa Tel: +233200005550 Email: info@irisresearchgroup.com Web: www.irisresearchgroup.com

Credits: We appreciate the support of Alfred Appiah for creating some of the graphs and reviewing the document. For enquiries on the Ghana 2020 Pre-Election Survey, contact: Tel: +233 0302 98 60 82 Email: info@irisresearchgroup.com

MONDAY NOVEMBER 23, 2020

World

MONDAY NOVEMBER 23, 2020

Coronavirus: £3bn for NHS but Sunak warns of ‘economic shock’ to come

hancellor Rishi Sunak is to announce an extra £3bn for the NHS - but has warned that people will soon see an “economic shock laid bare” as the country deals with the Covid pandemic. The one-year funding will be pledged in the Spending Review on Wednesday. But Mr Sunak said Covid’s impact on the economy must be paid for - and high levels of borrowing could not go on indefinitely. Borrowing in October hit £22.3bn, with public sector debt over £2 trillion. The NHS usually gets extra money to tide it through the winter months but on a much more modest scale, with £700m in 2014/15 the highest payout of the last 10 years. The Treasury said the £3bn package for the NHS would help tackle backlogs in the health service, with thousands of treatments and operations delayed because of the pandemic. The number of people waiting a year for treatment has risen

Chancellor Rishi Sunak

from about 1,500 in February to 140,000 in September. The extra funding only applies to England but Scotland, Wales and Northern Ireland will receive equivalent funding. NHS chief executive Sir Simon Stevens said the extra cash would take the weight off the NHS, allowing “one million extra checks, scans and additional operations” to be carried out. “And because Covid takes a mental as well as physical toll, it’s particularly important that we will be able to continue to expand mental health services too,” he said. However, the chancellor

warned of hard times ahead. Speaking to the BBC’s Andrew Marr show, he said: “We know that three quarters of a million people have tragically already lost their jobs, with forecasts of more to come. Borrowing is at record peacetime levels already. “It is not just numbers on a chart, it is people’s lives and livelihoods, it’s their security being impacted. And it is something that we are going to grapple with for a while to come, sadly.” Earlier, he told the Sunday Times people would soon see “the scale of the economic shock laid bare”, indicating taxes might have to start rising next year and

there could be spending cuts. The Office for National Statistics said government borrowing last month reached the highest October figure since monthly records began in 1993 - underlining the “substantial effect” the pandemic is having on public finances. Government borrowing has reached £214.9bn - £169.1bn more than a year ago. The Office for Budget Responsibility has estimated it could reach £372.2bn by the end of the financial year in March. Paul Johnson, head of the Institute for Fiscal Studies, told the BBC the government was right to keep spending as it tried to get the crisis under control. But he said tax rises would be inevitable to stop the country’s rising debt pile becoming “unsustainable”. Mr Sunak is facing criticism following reports he might announce a pay freeze for millions of public sector workers at Wednesday’s Spending Review. Frontline NHS staff would likely be excluded but those affected could include police, teachers, armed forces and civil servants.

Fed fights White House move to end some Covid support measures The US central bank has hit back after the Trump administration said it was ending some emergency lending programmes established to provide economic support during the pandemic. The decision affects schemes aimed at helping corporations, mid-sized businesses and local governments, among others. The Federal Reserve said it thought the programmes were still needed. But they have been controversial in Washington. US Treasury Secretary Steven Mnuchin authorised the programmes in spring this year, using money from a major stimulus package approved by Congress.

They marked a large expansion of the Fed’s powers, allowing the bank to buy corporate debt and lend to mid-sized businesses, among other authorities. But the schemes have been lightly used, drawing criticism from some who have questioned their necessity, and from others who were worried their design was too limited to reach those in need. Federal Reserve chair Jerome Powell has defended the programmes, saying they were helping to stabilise financial markets by giving the private sector confidence to continue lending. In a statement, the central bank said it disagreed with the White

US Treasury Secretary Steven Mnuchin (L) and Federal Reserve Board Chairman Jerome Powell

House decision to allow them to expire on 31 December. “The Federal Reserve would prefer that the full suite of emergency facilities established during the coronavirus pandemic continue to serve their important role as a backstop for our still-strained and vulnerable economy”, it said. ‘Limited’ use In his letter to the bank, Mr Mnuchin said the schemes had “clearly achieved their objective”. He asked the Fed to return unused funds to the Treasury Department, allowing Congress to put some $455bn to other uses. “While portions of the economy are still severely impacted and in need of additional fiscal support, financial conditions have responded and the use of these facilities has been limited,” he wrote in a letter to the bank. It was “Congressional intent... to have the authority to originate new loans or purchase new assets... expire” on 31 December, he added. The stand-off comes as Washington remains embroiled in debate over the need for further

stimulus. Economists have said the recovery remains fragile and cautioned against withdrawing support prematurely. Democrats have backed more than $3tn in new aid programmes, but Republicans maintain a smaller package would be sufficient. The US economy has recouped about half of the jobs lost in March and April. But many of the funds for unemployed workers and struggling businesses have been exhausted, while rising virus cases have led to renewed restrictions in many places. Without action by Congress, some 12 million Americans could lose access to unemployment benefits in coming weeks. The US Chamber of Commerce, a business lobby, criticised the decision to end the programmes just as president-elect Joe Biden is about to enter the White House. “A surprise termination... prematurely and unnecessarily ties the hands of the incoming administration, and closes the door on important liquidity options for businesses at a time when they need them most,” said the group’s chief policy officer, Neil Bradley.

MONDAY NOVEMBER 23, 2020

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Real Estate

MONDAY NOVEMBER 23, 2020

First National Bank ready to meet high demand and interest in home ownership

hana’s leading mortgage provider, First National Bank has hosted a virtual housing fair to help reduce the country’s housing deficit, which current stands at almost two million. Instead of hosting the housing fair at a physical location, as is usually done, First National Bank Ghana opted to take its annual housing fair completely online this year in response to the Covid-19 pandemic. That meant creating a platform for real estate developers, buyers and sellers to interact with each other while prospective homeowners viewed available properties and learnt about the diverse range of mortgage products the bank offers. “A lot of people look forward to this major event on our annual calendar as a bank and we’ve had people constantly calling in to check if we will host it once again. Organising this year’s housing fair was a very exciting challenge for us because of the pandemic,” says CEO of First National Bank

Ghana, Dominic Adu. “We needed to create a virtual reality environment on the internet where we could show prospective buyers the properties on offer; taking them to the property sites without having them at the physical location where the property is situated. Our solution was to film all the properties and capture all their details for the patrons of the fair to watch and interact with the sellers and our staff on our social

media handles on YouTube. We are very glad that as challenging as it was, we made it.” The Executive Head of the Home Loans Business at First National Bank, Kojo Addo-Kufuor, is also happy with the patronage and successful organisation of the virtual housing fair and points out that one major challenge for most Ghanaians, resident and non-resident, who want to own properties is “the difficulty in finding the right property at the

right price.” He says: “First National Bank Ghana helps to resolve this challenge by organizing the housing fair to showcase the many choices of houses, property designs, land and other infrastructure to enable buyers decide on what they are looking for while providing the funding for it with our complete suite of mortgages. All the videos are still available online and we invite the public to check them and reach out to us so we can help with the best mortgage solutions. Our aim is to make as many Ghanaians as possible acquire property they can call their own.” “You don’t need to be burdened about using your entire savings to acquire a home,” Mr. AddoKufuor concluded. “Whether you are young, old, resident or a nonresident Ghanaian, First National Bank can help you own a property in Ghana now. Today. We have bespoke mortgage products in our portfolio, perfect for the type of property you want and your financial capacity.”

Low interest rate and realistic pricing sustaining buoyant residential property market

s anticipated, the Monetary Policy Committee (MPC) kept the repo rate on hold at its meeting last week. While interest rates have already been reduced by 300 basis point for the year to date, to a near 50-year low of 3.5 percent, several analysts argued that there was in fact room for a further rate cut at this week’s MPC meeting. A strengthening in the Rand since the September MPC meeting, coupled with a softer oil price, a continued easing in the inflation rate, persistently weak economic growth prospects and an accommodative global monetary policy stance, all

supported the case for a further 25 basis point easing in rates. However, those who felt that the MPC was more likely to leave interest rates unchanged noted that October’s Medium Term Budget Policy Statement (MTBPS) had highlighted South Africa’s slower pace of fiscal consolidation and resultant elevated fiscal risks – prompting the MPC to err on the side of caution. Furthermore, the MPC has previously pointed out that the full impact of prior interest rates has yet to be felt – typically taking between 12 and 18 months to feed through the economy - and that a further 25 basis point rate cut

Dr Andrew Golding, the chief executive of the Pam Golding Property.

would be unlikely to add any meaningful further stimulus. Indeed, the Reserve Bank Governor has said that the Bank has already done what it can to support growth and that it is now up to government to implement the long-delayed structural reforms to lift South Africa’s economic performance. That said, what we are experiencing at present is a continued strong uptake in demand for residential property acquisitions around the country – particularly in the price band up to R3 million, with additional encouraging signs of increasing activity at the top end of the market. While the real estate industry came to a virtual standstill during the months of the hard lockdown, the pent-up demand has surpassed expectations, and has now shifted into gear to what is hopefully translating into a sustainable ongoing momentum in the housing market. On the back of a low interest rate environment, further fuelled by a keen appetite among young

and first-time buyers – which is especially evident in the lower and middle sectors of the market, and coupled with generally more realistic pricing, a ripple effect is filtering through the market, placing upward pressure on demand through the various price bands. The MPC has indicated that the repo rate will most likely remain unchanged at current levels until mid-2021, inching higher during the second half of 2021. While it remains to be seen how the country’s economic recovery gains traction, we believe that solid foundations and fundamentals remain in place for ongoing investment in the residential property market. This is especially so since, in addition to the usual reasons for movement in the marketplace, the lockdown has inadvertently created the rationale for a wave of new reasons for relocation and property acquisitions, from upsizing for additional space due to work from home scenarios to lifestyle moves to more appealing destinations further afield. Iol.co.za

MONDAY NOVEMBER 23, 2020

Feature

MONDAY NOVEMBER 23, 2020

Have female CEOs coped better with Covid than men?

New Zealand’s Jacinda Ardern has been widely praised for her handling of the Covid pandemic

ave female world leaders been more effective in tackling the coronavirus pandemic than their male counterparts? From New Zealand’s Prime Minister Jacinda Ardern, to Taiwan’s President Tsai Ing-wen and German Chancellor Angela Merkel, it is a widely-held view. There have even been academic studies on the issue, with one claiming that “Covid outcomes are systematically better in countries led by women”. But even if women politicians have indeed coped better with the pandemic than their male counterparts, is it the same in the world of business? We talked to five female business leaders about Covid - and discussed their views on whether there is a female-style of leadership. Avivah Wittenberg-Cox, CEO of 20-First, a global consulting firm that supports businesses in enhancing gender diversity, says male bosses have been trying to copy their female opposite numbers this year. “Every smart CEO watches what other leaders do, and I would suggest that what many [men] have done is borrow from the female playbook, which involves being incredibly caring of their stakeholders, and upping their communication skills,” she says. “Anglo-Saxon countries strike me as having a high expectation of masculinity, so with leaders... combative, individualistic and cut slightly macho. Female leadership is different in style and tone.” Sarah Beale, chief executive of

the UK’s Construction Industry Training Board, agrees that there is a “female playbook” when it comes to leadership, one that champions empathy. Her organisation allowed construction firms to suspend levy payments during the first lockdown, and provided financial support to 12,000 apprentices. “There’s always a danger in saying that a trait is entirely female or entirely male, as we’re all a mix of both, and different personalities,” says Ms Beale. “But reflecting on what I’ve personally done - and I’ve seen in other female leaders - is taking a step back, and placing yourself in the position of those that you’re trying to work on behalf of.” Ann Francke, chief executive of the UK’s Chartered Management Institute, which provides management training and qualifications, says the pandemic has led to more bosses embracing her long-held support of flexible working. “I have always been candid with my people that I take walks with my dog, and talk to people on the phone [while doing so], which is getting work done,” she says. “So they have always had permission to work flexibly. “Giving express permission to women to say that it’s OK to fit your work around your life should be one of the benefits of this pandemic.” While during the lockdowns, reports say that women have had to shoulder more of the childcare and household work, something Ms Franke calls the “Covid conundrum”, Kate Stevens, European boss of public relations firm AxiCom says she

has welcomed the chance to work from home. “Now we find ourselves in a world where it is entirely acceptable to see a senior individual doing a conference call with a small child on their lap,” says Ms Stevens. “Now it is acceptable to juggle things, and you don’t have to be a hardnosed businesswoman of the 1980s. We work in a world where we’ve recognised that showing a vulnerability can be a strength when it is used in the right way. “I think that female leaders tend to wear their heart on their sleeves a lot more than their male counterparts. You show people the reality of the world you’re living in, and they can empathise with you and they support you more.” Yvonne Wassenaar, chief executive of US technology firm Puppet, agrees that female bosses are more open. “What I’ve found is that if you’re willing to be vulnerable, then people are willing to be vulnerable to you, and that’s when you get true dialogue and true progress.” However, despite these stories of success during the pandemic, many challenges remain for female business leaders - and the young women who want to become one. A recent report found that women, in general, are still not seen as being as suitable for leadership roles as men. The study in question - the third annual Reykjavik Index for Leadership - interviewed more than 20,000 adult men and women across 10 countries

back in July - the G7 nations of Canada, France, Germany, Italy, Japan, the UK, and the US, plus India, Kenya and Nigeria. People were asked whether they thought men or women made better leaders, or whether there was no gender difference, across 22 political, government, legal and business sectors. From this a 100-point scale was calculated, with the top score of 100 meaning that men and women were viewed as equally suitable leaders. The lower the figure, the fewer people consider women to be as good for the top positions. The overall score across the G7 nations was 73 points, the same as last year, and just one higher than in 2018. The UK and Canada had the joint highest score of 81. For the UK this was up from 73 in 2019, while Canada had increased from 77. Nigeria, which was surveyed for the first time, was in last place on 47. “There’s just still a presumption that women are less entitled to lead than men,” says Michelle Harrison of research group Kantar, which conducted the report together with Women Political Leaders, a global network of female politicians. However, some female business leaders are hopeful that the pandemic will lead to a lasting change. “Never before have we appreciated feminine leadership in the workplace as we now do, and that’s here to stay,” says Ms Wassenaar. BBC

MONDAY NOVEMBER 23, 2020

Feature

MONDAY NOVEMBER 23, 2020

America, heal thyself

By Ana Palacio

n 1998, then-US Secretary of State Madeleine Albright famously defined the United States as “the indispensable nation,” declaring that, “We stand tall and we see further than other countries into the future.” Two decades later, the US remains the indispensable nation. And yet, rather than seeing into the future, it has lately seemed to have its eyes closed. Does Joe Biden’s victory in this month’s presidential election mean the US is re-opening them? One thing is apparent: had Donald Trump won a second term, the fate of the US Albright described would have been sealed. The America that has long undergirded the liberal international order – shaped by the universal principles defined in the 1941 Atlantic Charter – would have been destroyed, once and for all. And yet the impending Biden presidency by no means guarantees a return to the US leadership and vision of the past. Yes, it was a definitive victory. Biden won over 79 million votes, more than any other US president. And he won the same number of Electoral College votes as Trump did in 2016, when Trump claimed to have a “massive landslide victory,” despite his having lost the popular vote to Hillary Clinton. Nonetheless, Trump received more than 73 million votes this year – about ten million more than in 2016, and the second-largest number of votes ever cast for a US presidential candidate. And his unfounded claims of widespread voter fraud – supported so far by much of the Republican Party establishment that has, until

now, refused to confirm Biden’s victory – have convinced about half of US Republicans that he is the election’s “rightful” winner. Far from producing a wholesale rejection of Trump and Trumpism, the election has demonstrated that Trump’s influence will extend far beyond his presidency. This is to say nothing about the lasting scars that his continued challenges to the election results – in the courts and in public consciousness – will leave on America’s democracy and international reputation. To be sure, this legacy is not likely to be fully felt internationally in the near term. The Biden administration will seek to reassert America’s role in multilateral institutions. Already, the president-elect has pledged to rejoin the Paris climate agreement, the World Health Organization, and the Iran nuclear agreement. Other likely actions include the unblocking of appointments to the World Trade Organization’s Appellate Body, responsible for adjudicating disputes among members, a move that is of both practical and symbolic significance. But, while these nods to multilateralism are important, the expectations that the US will swiftly resume its global leadership role must be tempered. Although the US remains the world’s predominant military and economic power, as well as a major cultural force, it is no hegemon. It can no longer dictate the direction of international relations. What the US can still do is mobilize diverse international actors to address shared challenges. Unless the US heals its divisions, however, even this

“convening power” – which lies at the heart of Biden’s likely early efforts to restore multilateralism – is likely to be eroded in the medium to long term. Convening power is more nuanced than raw hegemonic power. It rests not only on capacity and influence, but also on a sense of moral authority that attracts partners and infuses shared action with legitimacy. A convening power must set an example of liberalism and multilateralism, not just make demands. A country as divided as today’s US cannot provide such an example. The stakes are high. If the pole around which the international order was built continues to weaken, the dangerous drift of recent years – exemplified by the absence of a coordinated global response to the COVID-19 pandemic – will continue. Even the diplomatic muscle memory that has enabled the limited recent examples of cooperation will fade. Why shouldn’t someone else lead? Simply put, because no one else can. There is no single actor, or even a collection of actors, that is ready to take America’s place. Consider the European Union, which has long fancied itself a potential standard-bearer of liberal values. It certainly possesses many of the attributes of an exemplar: vibrant and diverse cultures, dynamic civil societies, well-institutionalized systems for upholding human rights and the rule of law, and a commitment to multilateralism. And yet, in many areas vital to global leadership, the EU falters. A lack of political will has meant that Europe has consistently misallocated resources. As a result, it has failed to build up

adequate shared capacity or even to create the conditions for doing so. For example, EU leaders insist that Europe needs to achieve “strategic autonomy,” without agreement on what that means. More fundamentally, the EU lacks the self-assurance it would need to serve as a credible and compelling example for the world. To change that, it must first define and convey a compelling raison d’être, which can form the basis of its own revitalized model. It must then dedicate significant resources – time, effort, and money – to building the capacity and status needed to project its influence. In short, the EU must walk the walk.1 Unless and until it does, the US will be indispensable, because it is irreplaceable. That makes it all the more important for the Biden administration not only to re-engage with the world and the multilateral system as a convening power, but also to find a way to heal the US. Only a reasonably united America can stand tall, look forward, and serve as the beating heart of the liberal international order. About the author

Ana Palacio, a former minister of foreign affairs of Spain and former senior vice president and general counsel of the World Bank Group, is a visiting lecturer at Georgetown University.

MONDAY NOVEMBER 23, 2020