Business24 Newspaper 12th October, 2020 by Business24 Online

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MONDAY OCTOBER 12, 2020

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MONDAY OCTOBER 12, 2020

GH¢3.3bn of corporate bonds await issuance

Cross-border cooperation key to fighting cybercrime— 2nd Dep. Gov. By Joshua Worlasi Amlanu macjosh1922@gmail.com

n a bid to fight cybercrime in the financial sector, it has become necessary to have cross-border cooperation that promotes information sharing, says Second Deputy Governor of the Bank of Ghana (BoG), Mrs. Elsie Addo Awadzi. Cont’d on page 3

By Joshua Worlasi Amlanu macjosh1922@gmail.com

vailable data on activities on the Ghana Fixed Income Market show that about GH¢3.3bn

worth of corporate bonds are outstanding to be issued by nine companies, including the government-owned ESLA Plc. The bonds are part of a total shelf-registered issuance— that is, bonds registered with

regulators to be issued over time—of GH¢12.1bn, of which GH¢8.8bn have been issued to date.

Embassy of Spain - Hispanic Day Publication

Cont’d on page 2

New law transfers oversight of Cocobod to Agric Minister By Eugene Davis ugendavis@gmail.com

new bill, the Ghana Cocoa Board (Amendment) Bill 2017, which will transfer ministerial oversight over

Cocobod to the Minister of Food and Agriculture and reposition the board to deliver the target of producing 1m tonnes of cocoa annually, has been approved by parliament. According to a report on

the bill by the Constitutional, Legal and Parliamentary Affairs committee, per PNDC Law 81, the Minister for Trade exercises responsibility over Cocobod.

Inside ECONOMIC INDICATORS

Cont’d on page 3

*EXCHANGE RATE (INT. RATE) *POLICY RATE

USD$1 =GHC 5.6734* 14.5%*

GHANA REFERENCE RATE

15.12%

OVERALL FISCAL DEFICIT

11.4% OF GDP

PROJECTED GDP GROWTH RATE AVERAGE PETROL & DIESEL PRICE:

0.9% GHC 5.13*

INTERNATIONAL MARKET BRENT CRUDE $/BARREL NATURAL GAS $/MILLION BTUS GOLD $/TROY OUNCE

$39.80 1.79 1,842.40

CORN $/BUSHEL

329.50

COCOA $/METRIC TON

$2,620

COFFEE $/POUND:

$109.65

NEWS/EDITORIAL Editorial / News

MONDAY SEPTEMBER 14 2020 2020 MONDAY OCTOBER 12,

EDITORIAL Editorial

Wash your hands 2

Cover your cough 3

Pay before boarding order needs a rethink

Cocoa farmers deserve more

The new directive for all passengers to pay for their ocoa is an important crop COVID-19 test online before their sadly, the arrivalforatGhana; Kotokayet International Airport has struggles been meet with country to take a resentment by airlines and bite out of the multibillion-dollar passengers. global chocolate industry. At a time whena passengers are Despite being major source still coming to terms with the of cocoa � GHC beans900� in the world, US$150 mandatory our cocoaforfarmers little payment COVID-19have test upon arrival at KIA, the new directive to show for their sweat. Recent has generated debate. and initiatives, led more by Cocobod Ghana its Passengers counterparttravelling in Cote to d’Ivoire, will from Tuesday, September 15 the world’s largest producer, be required to make online are attempting to rewrite the payments for the mandatory narrative. C OV I D -1 9 te s t at Ko to k a International Airport prior to The introduction of the Living boarding of their flight, a Income Differential (LID) is directive by Frontier one charges H e aof l t hthem. C a r e � The t h e LID com pany international contracted tobuyers carry ofoutcocoa the antigen test at KIA--to all airlines an extra US$400 per tonne on on Friday has revealed. top of the world market price to B y upt hthe e incomes n e w dof i rfarmers. ective, shore “Passengers are required to show As aof result of to the LID, as fora proof payment airlines the new (2020-21) harvest

condition for boarding of flights to KIA.” season beginning this month, n e w d i re chas t ive ,raised has theT h egovernment however, been described by the purchase price of tococoa airlines as detrimental the from farmers by 28 to renewed efforts to percent stimulate demand for air travel, given that GH¢10,560 per tonne, putting cash money payments remains the more in farmers’ pockets. predominant mode of payment desperate need to address forThe most Ghanaian travelers. the cocoa sector’s challenges, An airline operator who such as ageing and diseased trees wishes to remain anonymous, as as lack that of a“The structured toldwell Business24 cost is already tooscheme high and this retirement for now farmers, new policy is also going to be means that the recent attention implemented. There are being paid ofto Ghanaian the farmertraders could hundreds not come at agoods bettertotime. whohave travel to buy retail in At theleast country. the policy makers are “Most of to them don�an t carry beginning make effortany to electronic payment cards to be right the ills that farmers have able to pay online. They should long have suffered. the flexibility to pay cash It isthey also welcoming to see when arrive.” that Parliament has Protection transferred The Consumer oversight of Cocobod from the Agency � CPA� has also raised criticalMinistry questions the Trade to theabout Food and relatively Ministry. high cost of the Agriculture

country� s COVID-19 testing regime. The amendment means the The CPA� s Chief Executive Minister of Food and Agriculture Officer, Kofi Kapito, said in as will now responsible much as the be government want for to approval of prices curb imported casesof ofcocoa, the respiratory coffee, anddisease, shea toitbemust paidnot to burden the passenger but charge farmers, issuance of general what is enough to cover their directions to Cocobod to cost and not to profit relating from the the performance of its functions, passenger. and the making regulations to “Look around of Africa and you ensure effective see that the what is paid performance in Ghana for the test is theofhighest. Why of the functions the board. should that be� ” With better oversight and He also Ghana raised questions policies, should beabout able why the Noguchi Memorial to expand output of not Institute for Medical Researchjust of cocoa beans but cocoa the University of processed Ghana, was not made to handle the testing for a products for export. reasonable fee but sorather a The steps taken far are contract given to a foreign positive, to butdo cocoa farmers company what Noguchi deserve more—and we can only could adequately handle. ask government to like ensure that Business24 would to urge get what that is rightfully afarmers flexibledoapproach allows passengers online due them to for either their pay decades of or cash on arrival. toil.

GH¢3.3bn of corporate bonds await issuance

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

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that the desired outcomes are outbreak had transformed their team structures to the new way of 19 percent. term achieved and the economy operations, the bank chiefs below working in order Shorter to maximise brought back on track.” responded that the immediate government efficiencies oftreasuries digital banking, offer and ensure less-paper operations 14 and 16 percent. Mr. Awuah� s remarks were response was to enforce remote between working while realigning workers� and requirements for social reinforcedfrom by majority Continued cover of the top market in recent years, the Likewise, interest rates on fixed roles. distancing. In the long run, these bank executives who responded corporate bond market offers an at August were measuresasmay result2020, in possible While the majority, 69 percent, deposits, to the survey. The respondents opportunity for investors to earn on average of about 11.5 percent The companies involved are advised the Bank of Ghana to of respondents indicated that layoffs for some whose jobs returns above GoG securities, become three months tenor. the report Letshego with outstanding automated,” increase Ghana stakeholder consultation remote working will become a for permanent option going forward, the risk premium,” the said. Although corporate bonds are issuance of propose GH¢70.67m; in order to more given Commenting on the findings there was general consensus that medium to long term with regardof Edendale beneficial Properties policies. (GH¢17.35m analyst said. the survey, which was on on the the new norm will ultimately lead are looking forward to tenors, the high liquidity outstanding); Financial This, theyBayport said, will help toInvestors the shedding of workers whose theme “The new normal� banks� the impending bond issuances the Fixed Income Market means Services (GH¢191.56m); estimate the timelines andGhana extent to response to COVID-19”, PwC� s jobs have become automated. to which the (GH¢361m); policies of PBC the due“ M to bondholders exit their Home Loans Country Senior can Partner, Vish o s t the b a nsignificant k s i n t e n drisk t o that regulator will remain available. being offered, remote over investments whenever thatthey Ltd. (GH¢37.7m); ESLA Plc premiums Ashiagbor, cautioned for permanently incorporate S o m e r e s p o n d e n t s s i m p l y both government debt available securitiesto choose since are the generally workers thatbuyers survive digital as an option (GH¢2.37bn); Bond Savings and working thought that there was the need staff based on their roles. 12.5� of p ro g re s s i o n , t hey h ave to and bank fixed deposits. readily available. Loans (GH¢29.6m); for detailed guidelinesQuantum from the banks confirmed that they have upgrade their skills to remain As at September 2020, Even though corporate bonds Terminal (GH¢95m); government and Bankand of Dalex Ghana already relevant. begun and will continue bonds offered coupon are riskier than government Finance on the(GH¢130m). implement ation of corporate to realign the job roles and work measures putofinthe place to Income curb the rates of up to 20 percent securities, the companies with An analyst Fixed impact of the pandemic. Market, who preferred be compared with similarly tenured prior approval for new issuances In their view, guidance government bonds (three to five are widely regarded as safe anonymous, said inclear an interview was missing, and though this years tenor) which offer well investment bets. that the prospects for the bonds c o upositive, l d b e especially s h a r e das dprivate uring are stakeholder consultation, they and institutional investors have could not fully embed the new begun their locked up policiesreceiving in operational strategy funds in the liquidated non-bank without a detailed documented financial directive. institutions and fund management companies, and ADVERTISE WITH US would be exploring options to Post-pandemic banking TEL: +233 024 212 2742 reinvest those funds. When asked firm www.thebusiness24online.net “Also, withby the theauditpoor about how the pandemic� s performance of the stock

MONDAY OCTOBER 12, 2020

New law transfers oversight of Cocobod to Agric Minister Continued from cover However, the government considers it necessary to transfer the ministerial responsibility to the Minister of Food and Agriculture, the report said. Moving for the adoption of the report, the chairman of the committee, Ben Abdallah Banda, said it became imperative to amend PNDC Law 81 to achieve the government’s objective. The amendment means the Minister of Food and Agriculture will now be responsible for approval of prices of cocoa, coffee, and shea to be paid to farmers, issuance of general directions to Cocobod relating to the performance of its functions, and the making of regulations to ensure the effective performance of the functions of the board. At the committee consideration stage of the bill, officials of Cocobod had informed members that the intended change in ministerial responsibility was to properly focus on cocoa production as the

Dr. Owusu Afriyie Akoto, the Minister of Food and Agriculture, will henceforth oversee the activities of Cocobod.

foremost function of the board. The cocoa industry plays an important role in Ghana’s economy, employing about 800,000 people and generating about US$2bn annually in foreign exchange earnings. Cocoa output reached a peak of 1m tonnes in the 2010-11 harvest season, but has ranged between 800,000-900,000 tonnes since

then as the sector struggled with diseased and aged trees. According to a Bloomberg report on September 29, production fell to a five-year low of less than 800,000 tonnes in the 2019-20 harvest season that just ended. For the new (2020-21) harvest season which began this month, the government has raised the purchase price

of cocoa from farmers by 28 percent to GH¢10,560 per tonne. This follows the successful implementation of the Living Income Differential (LID), whereby international buyers of cocoa pay an extra US$400 per tonne on top of the world market price to shore up the incomes of farmers.

Cross-border cooperation key to fighting cybercrime—2nd Dep. Gov. Continued from cover Mrs. Awadzi was speaking at the Alliance for Financial Inclusion High-Level Joint Learning Programme on Inclusive FinTech Ecosystems and Cybersecurity. Sharing the BoG’s experience in implementing cybersecurity policy frameworks and the coordination models adopted to build a robust ecosystem, the Second Deputy Governor said, “Going forward, cross-border cooperation remains an issue to explore to promote information sharing and harmonised approaches to regulating crossborder service providers.” Mrs. Awadzi noted that BoG already has strong cooperation arrangements with key domestic stakeholders. “Information is shared between BoG and the national authorities frequently. BoG

Mrs. Elsie Addo Awadzi, Second Deputy Governor, Bank of Ghana

engages with other financial sector regulators bilaterally and at the level of the Financial Stability Council, whose mandate is to promote regulatory cooperation, financial systemwide risk mitigation, and crisis preparedness,” she said. Within the financial sector,

BoG currently implements policies, strategies, and regulation for the banking and other deposit-taking institutions, payments system infrastructure and service providers. Aside from cooperation in the fight against cybercrime, the central bank, Mrs. Awadzi said,

has also been stressing the need for enhanced due diligence in recruitment and outsourcing by financial institutions and payments systems operators and service providers, to mitigate insider fraud. The central bank, she added, has continually stressed the need for continuous vigilance of all service providers and operators in the ecosystem, as well as the education of consumers to help empower them to take steps to protect their financial transactions, especially those that are digital. The bank’s comprehensive Risk-Based Supervisory Framework ensures that cyber security issues are embedded in the supervisory cycle for licensed financial services providers as part of operational risks assessments and overall safety and soundness assessments, she said.

MONDAY OCTOBER 12, 2020

News

MONDAY OCTOBER 12, 2020

Airport workers extend ultimatum for CEO’s removal By Sani Abdul-Rahman

he agitating workers of the Ghana Airport Company Limited have extended, by a week, the initial 14-day ultimatum given the Presidency to remove Yaw Kawkaw as Managing Director, or embark on an industrial action. This followed discussions between the company’s board and leadership of the Divisional Union on October 8, the last day of the initial two-week ultimatum issued by the workers. “The board asked for a week to have clarity on the matter and we agreed. However, our position is unchanged, the MD must leave,” General Secretary of the Divisional Union, Patrick Mensah told Business24 after the meeting. GACL staff have been protesting since July over the Aviation Ministry’s plan

to engage Turkish firm, TAVSumma Consortium, as a strategic partner for expansion works at the Airport, coupled with allegations that the management of the Airport had been ceded to a private player. But the latest disagreement is with their Managing Director who they accuse of mismanagement, outsourcing of key services at exorbitant costs, lack of interest in staff welfare among others.

The workers claim: “the Managing Director since assumption of office 2 years ago has demonstrated gross incompetence, insensitivity and lack of understanding of the critical aviation industry and therefore his continuous stay in office will further derail the progress of the company.” Impact of labour disruption An industrial action at the airport will mean the over 1,000 staff of the company across the four airports including the

Kotoka International Airport, such as ground handlers, airport security among others will walk off till their demands are met. This will severely disrupt both domestic and international travels, and may lead to flight cancellations. “We know the consequences of the planned strike, and we don’t want to get there. No flight can touch down when we embark on the strike. But, we will not hesitate to do so if our concerns are ignored,” the General Secretary of the union said.

Keta Port feasibility study to be completed first quarter 2021

easibility studies being conducted into the construction of the Keta Port will be completed in the first quarter of 2021, Dr. Alexander Adusei Jnr, Director of Port of Keta, has revealed. Dr. Adusei Jnr said the feasibility studies were scientific analysis that would looked into all relevant economic, technical, legal, and social factors concerning the project. Itt would afford the Port

Dr. Alexander Adusei Jnr

Authority the needed information on the likelihood of completing the project successfully in line with the Ghana Ports and Harbours Authority’s (GPHA) masterplan. Speaking to the media, he said GPHA would be able to draw a clear course for the construction of the Keta Port after fully assessing reports from the feasibility studies. He said after the completion of studies in February 2021, relevant

Ministries such as Ministry of Roads and Highways, and Railways Development would be engaged due to the essential role they played in the value chain of such a development. He indicated that although the coronavirus pandemic created some obstacles to the smooth progress of the feasibility studies, the consultants have been able to redesign their mode of operation, and continued all relevant research, and engagements. “Even with COVID-19 interrupting us, we have managed to get our consultants to engage stakeholders through the telecommunication platforms and physically as well,” he disclosed, adding that the consultant would soon arrive in Ghana to resume physical engagements with relevant stakeholders to complete their studies. Dr. Adusei Jnr added that the GPHA would then open itself up for tangible offers from potential investors for the construction of the Keta Port indicating that, a lot of companies have shown interest in developing the facility. He projected that when the Port of Keta was completed, it

would serve as an agribusiness hub for Ghana, and complement the nation’s efforts in embarking on an aggressive industrialisation agenda that would serve as a springboard for a Ghana that is beyond aid. The Director of the Port of Keta, explained that an infrastructure such as a port would open up opportunities for investment into the agribusiness, and manufacturing industry for the Volta basin of Ghana which he said was blessed with enormous agricultural potential. He further said the Port of Keta, would also open up investments into the exploration, and exploitation of mineral resources that the Volta basin was endowed with, and that he noted could significantly augment Ghana’s export potential as well. “We believe that once you have a major port in that area, those industries would spring up themselves and you would have investor interest. Because they know for sure that coming there, they would have other antecedent projects .” GNA

MONDAY OCTOBER 12, 2020

News

MONDAY OCTOBER 12, 2020

First National Bank Ghana to host maiden trading and forex markets webinar

irst National Bank and Rand Merchant Bank (RMB, the corporate and investment banking division of FirstRand Group) will be hosting a webinar on the topic ‘Africa, the next opportunity – Africa Continental Free Trade Agreement (AfCFTA)’. The virtual event, which is scheduled for October 15, 2020, is expected to equip individuals and businesses with key insights for trading within Africa as well as knowledge about the opportunities offered by the Africa Continental Free Trade Agreement (AfCFTA). The webinar has been carefully designed as a platform to unpack trade flows between Africa and the rest of the world. First National Bank has put together some of the foremost experts in this field as panelists, namely: Daniel Kavishe (RMB Economist), Marthinus Havenga (owner of Cathkin Consulting) and Rian Geldenhuys (CEO of Trade Law Chambers). “Key among the areas of focus will be a deep dive into the operations and mechanics of a free trade zone and some of the

Richard Kokoih, Head of Coverage for Corporate and Investment Banking

opportunities and challenges it poses” says Kofi Pianim, Head of Global Markets at First National Bank Ghana. “In this webinar, the panellists will be discussing the current economic climate in Africa, narrowing down to the FX liquidity dynamics in Ghana. The panellists will also share valuable

data and statistics that clarifies the import and export markets in Africa, as well as the regulatory requirements for agreements and the practical operational mechanics.” Mr. Richard Kokoih, Head of Coverage for Corporate and Investment Banking at First National Bank Ghana

also explained that the bank is resolute to overturn conventional wisdom that translates to innovative thinking across multiple industries with a versatile mix of robust financial solutions. “The challenges businesses are faced with vary in many instances, but in the case of the current difficulties associated with the pandemic there is a generic struggle with trading, foreign exchange and business value management even though restrictions are being eased” Mr. Kokoih says. “That is why we are leveraging on the knowledge and outstanding experience of our energetic team of professionals to help trigger innovative solutions that drive exponential results for businesses.” While the webinar is targeted at businesses, investors and SMEs, interested participants may apply to be part of the event, which is slated for October 15, 2020 at 9am on Microsoft Teams. Those interested can apply at www. firstnationalbank.com.gh or on any of the First National Bank Ghana’s social media handles.

Nova Wellness Centre outdoors new facility

ultiple-award winning chiropractic and wellness hub, Nova Wellness Centre, has officially commenced operations at its new facility located at Ringway Estates in Accra. The clinic has also introduced new wellness services aimed at helping the general public to rejuvenate and improve their overall health including dietetics, physiotherapy, spa services and psychotherapy as added services. “Beyond pain relief, we want our patients to experience what it means to live again. That is why we have brought together dieticians, fitness coaches, psychotherapists and many other professionals to help bring real wellness to all,” Chief Executive Officer of the centre, Dr. Naa Asheley Dordor, said. “We are excited about our new space because it allows for social distancing and all other safety protocols. It also enhances

our commitment to empower our community members to live healthy and fulfilling lives,” she added. According to her, services in the newly added Nova Spa will imbue patrons with new life and vitality. The new premises offer enhanced client experience by offering adequate parking

space, enhanced security with effective social distancing in all departments and a one-stopshop for all wellness services. Established on the 28th of May 2013, Nova Wellness Centre (NWC), has grown from a spinefocused clinic to becoming a holistic wellness centre which offers, chiropractic adjustments and massage services. Other

services include physiotherapy, dietetics, fitness coaching and corporate wellness. Since its inception, Nova Wellness Centre has been of an immense benefit to thousands of individuals buy helping them to achieve maximum wellness naturally without the use of drugs or surgery.

MONDAY OCTOBER 12, 2020

Feature

MONDAY OCTOBER 12, 2020

Following-up on potential: how building relationships leads to more opportunities!

et’s not beat about the bush: we all go networking because we want to sell our business and services, and in doing so, gain new customers/clients. That is the main reason we do it. That said, in doing so, we make connections with fellow business people, make friends, learn from other people, gain the trust of each other, and ultimately give others the confidence to do business with you, and/or refer you to others. It’s quite simple really. But, of course, there is much more to networking than that, including consistency in attendance, a good 60 seconds pitch for your business, and the following-up of new connections, possible leads, and hot referrals. Following-up is definitely what makes a successful networker. First of all, if you get a referral, be quick to chase it. If it’s a warm referral, ask the person who passed it on to you how they can help you turn it into a hot one. But follow it up sooner rather than later, because by delaying the contact, you might lose the potential business.

But more than that, following up involves building the rapport and trust among fellow members of your networking group. At BforB, for instance, we encourage our members to connect on Linked In, and to arrange 1-to-1 meet ups after, or away from, fortnightly meetings. Sure, you see regular faces at the BforB meetings, and strike up goodwill and banter with many of them. You listen to their pitches, their Spotlight presentations, and take note of their testimonials. Which is great. But as a regular at a networking group, you really firm up the rapport by meeting up with fellow members away from the meeting room environment. For a start, you might find you have plenty more in common than you thought, such as a shared passion for a sport, a band, or an interest. By meeting in a 1-to-1 format, you have the opportunity to really get to know the person, and their business; what motivates them, what kind of referrals they are looking for, what can you learn from each other’s experiences.

In some cases, there may well be professional synergy, and with it the opportunity to team up and work together, supporting each other’s talent and services. You can also decide to team up with other selected members and working together, and share business opportunities. Indeed, with this strategy, you are likely to quadrupled your business in a year, which is awesome. So there are many merits of doing more than turn up to a networking meeting, but to follow-up opportunities that arise, including referrals, but in particular, getting to know fellow members, knowing what opportunities each other is looking for, and building up relationships for the greater good. Ultimately, we are all looking to win more business. It’s why we network! Authored Breakfast

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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. Contact us: 059 4 016 432 | info@ bforbgh.com | Facebook & LinkedIn: @bforbghana | www.bforb.co.uk

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MONDAY OCTOBER 12, 2020

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What does AfCFTA mean to Ghana? Facilitated by Joseph AttaMensah, Principal Policy Adviser in Macroeconomics and Governance Division and Ziad Hamoui, National President of Bordeless Alliance Tuesday 6th October 2020

he maiden Hybrid Business Conference organized by CCI France Ghana was held Tuesday 6th October at Labadi Beach Hotel. This event, after the radio silence effect observed during the sanitary pandemic, focused on the topic “What does AfCFTA mean to Ghana”, gathered about 120 business executives and policy specialists across varied sectors on site and about 20 participants via the official virtual platform. The event started with an opening keynote address delivered by Madam AnneRita Solano, Managing Director, CCI France Ghana. The first panellist, Dr. Joseph Atta-Mensah was introduced as the Principal Policy Advisor in Macroeconomics and Governance Division for United Nations Economics Commission for Africa (UNECA). The first part of this presentation focused on What AfCFTA means to Ghana? The speaker began with an introduction of the abbreviated term AfCFTA – African Continental Free Trade Area, its potential and welfare implication on trade. As a brief introductory to the main topic, Mr. Atta-Mensah provided a brief history of the trade agreement saying AfCFTA started in 2012, where Heads of African states gathered in Ethiopia with a common goal to accelerate and deepen regional integration through trade. In 2019, the decision to establish the AfCFTA agreement took place in Kigali, Rwanda and has to date 54 countries signed and 30

countries ratified, he added. He further provided a more detailed outline of this trade agreement stating that the AfCFTA trade agreement 2 phases. Phase one contains 3 parts namely Protocols on Trade Goods, Services and Dispute Settlement, while Phase two is presently under negotiation. Each protocol under Phase one focuses on an agreement that enhances intra-African trade with lower tariffs, removed barriers, mechanisms for dispute resolution, all leading to the harmonization of custom protocols. The next chapter for presentation focused on the reason for the creation of AfCFTA: What AfCFTA means to Ghana? Atta-Mensah elaborated on this query by adding that, for Ghana to benefit from trade, there is the need for the country to assess its measuring ambitions and exploit commodities and services that require manufacturing and production, in order to add value to the finished product as opposed to the present day export of raw commodities; gold, cocoa and timber. Following his proposition, the speaker mentioned what the expected impact of this trade agreement should have on exports with the major affected sector being agriculture. The main approach to boost trade in the agricultural sector is via agricultural mechanization to increase production that should provide food security and simultaneously lower Gross Domestic Product (GDP) in the long term, he added. This proposed approach

should have an impact on the intra-regional trade thereby increasing export volumes, lowering tariffs, and increasing trade creation at $82 million with trade diversion estimated at $66 million. Prior to his final remarks, Atta-Mensah mentioned what it means for Ghana to have the AfCFTA secretariat established locally; in essence to serve a financial hub and an avenue for business opportunities. He pointed out the main elements that should support the implementation of this trade agreement namely: Monetary policies, Financial Stability and Fiscal Policy. In his conclusion, he emphasized on the need for Ghana to invest in skills training of the younger and growing generation to increase production volume and lower unemployment challenges. This detailed presentation as facilitated by the first speaker received questions from participants prior to the second session of the presentation. The second part of the presentation was facilitated virtually by Mr. Ziad Hamoui, National President for Borderless Alliance West Africa and Executive Director of Transport and Operations at Tarzan Enterprise Ltd. The facilitator’s presentation focused on the role of the young generation in the AfCFTA region. Hamoui elaborated on the opportunities and challenges currently available for Regional Economic Integration, stating that Africa has a huge potential in terms of trade. However, there is the need to conduct a comparative

analysis between private enterprises and policy makers to strike a balanced common ground for both entities to work together to enhance trade benefits, he added. The volume of intraAfrican regional trade is estimated at 15.4% and this indicates the opportunity for local businesses to develop strategies that will aid trade acceleration and increased volume in production. The creation of this trade agreement – AfCFTA provides an immense opportunity for the youth to develop their skills to compete within the African region and with competitors from developed countries, he said. In his final remarks, the facilitator mentioned that AfCFTA is a key that should drive regional integration between African countries in terms of trade, and this could be achieved through enhanced manufacturing and production of raw materials processed into more valuable commodities for sale on the market. This session as led by Hamoui also received very thoughtprovoking queries from the audience, with each concern thoroughly addressed. To conclude, the opening of the AfCFTA secretariat in Ghana has received positive response yet minimal access to information to the public. The hybrid business conference organized by CCI France Ghana was as such an effort to introduce AfCFTA to our members and associates as well as what it means to the varied sectors and businesses across and the impact and benefits in the long run.

MONDAY OCTOBER 12, 2020

Aviation

MONDAY OCTOBER 12, 2020

Boeing in talks to set up office in Ghana By Dominick Andoh

merican aircraft manufacturer, Boeing, is exploring the possibility of setting up a Maintenance, Repair and Overhaul (MRO) facility in Ghana to serve the West Africa sub-region. Grounding of the plane maker’s 737 Max by airlines over safety concerns after two deadly accidents, canceled 737 Max orders, compensation to clients and the COVID-19 pandemic have conspired to erode the company’s fortunes. The move by the plane maker, which had to accept government support in order to avoid more layoffs, is imperative to deepen its footprints in the Africa region. Chief Executive Officer of the Ghana Investment Promotion Centre (GIPC), Yofi Grant, who confirmed the talks said: ““We have had discussions of [Boeing] having an office in Ghana to service planes in the subregion and also in Africa. Those discussions are ongoing.” In West Africa, a number of airlines have Boeing planes in

their fleet. Nigeria-based Air Peace and Arik Air, as well as Togo-based Asky Airlines have significant numbers of Boeing equipment. The desire to engage Boeing

follows the success of getting world renowned automobile brands to set up here in Ghana. The companies include VW, Nissan, Toyota, and Sinotruck. VW has already begun

production of five Volkswagen models—Tiguan, Amarok Pickup, Passat, Polo, and Teramont—at its Accra plant. Nissan and Toyota are expected to open their own plants this year.

Malaysia Airlines’ survival in doubt, says CEO

alaysia Airlines will have to shut down if its lessors decide not to back its latest restructuring plan, the airline’s group chief executive was quoted as saying on Saturday. A group of leasing companies has rejected the airline’s restructuring plan, bringing the state carrier closer to a showdown over its future, Reuters reported on Friday. Malaysia Airlines group chief executive officer Izham Ismail said the group would have “no choice but to shut it down” if lessors decide against backing the restructuring plan. “There are creditors who have agreed already. There are others still resisting, and another group still 50:50,” Izham said in an interview with The Edge weekly newspaper. “I need to get the 50:50 ones (on board) with those who have agreed. I understand quite a sizeable amount of creditors have agreed.” Izham said the plan was to restructure the airline’s balance sheet over five years, achieving break-even in 2023 on the assumption that demand in the domestic and Southeast Asian markets returns to 2019 levels by the second and third quarters of 2022. The plan will also require a fresh cash injection from its

Emirates advances distribution capabilities with launch of new gateway for trade partners

major shareholder, the state fund Khazanah Nasional, to help the airline over the next 18 months. Malaysia Aviation Group (MAG), the airline’s parent company, did not immediately respond to a Reuters email seeking comment. Lessors claiming to represent 70% of the airplanes and engines leased to the group have called the plan “inappropriate and fatally flawed” and pledged to challenge it, according to people familiar with the matter and a letter from a London law firm seen by Reuters. However, some leasing companies have endorsed the plan, said one of the sources, declining to be named due to the sensitivity of the matter.

The law firm Clifford Chance, which sent the letter on behalf of the lessors, did not respond to a request for comment. In an email to Reuters, Malaysia Aviation Group (MAG), the airline’s parent company, said on Saturday it was “pleased” with the level of support it had received from its lessors and was continuing discussions with them. “(MAG) is confident that there are appropriate legal mechanisms available should that support not be universal,” it said. “MAG reiterates that the spirit of its restructuring plan is not intended to create unnecessary pain among its creditors but is done in good faith to drive for the

long-term survivability of MAG and its dependent value chain of partners.” The airline group is seeking to implement the restructuring plan through a UK court process, according to sources. The letter from the law firm further raises the stakes after Reuters reported that the carrier had warned lessors that Khazanah would stop funding the group and force it into a winding-down process if restructuring talks were unsuccessful. The letter, dated Oct 8, states that if the group “insists on proceeding with the proposed restructuring plan, our clients will use all means at their disposal to challenge it on all possible grounds”. Izham said the lessors will need to make a decision by Sunday, so that the airline can decide whether to proceed with its restructuring plan or “execute Plan B”. He said Plan B could involve shifting Malaysia Airlines’ air operator’s certificate (AOC) to a new airline under a different name, or using the certificates of sister airlines Firefly and MASwings. “If you ask me, is Plan B credible? Of course, it is. We have all the skill sets in place,” he said. ( Source: Bangkok Post)

MONDAY OCTOBER 12, 2020

Spain for sure...

MONDAY OCTOBER 12, 2020

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MONDAY, 12TH OCTOBER, 2020

Message from Alicia Rico Pérez del Pulgar Ambassador of Spain to Ghana

Dear readers, On 12th October we celebrate the Spanish National Day. Today we remember and celebrate two landmark events in the history of our country and of the world. More than 500 years ago, different kingdoms with diverse realities united under one single monarchy and gave birth to Spain as a modern nation. Today we also celebrate the historic event which took place on 12 October 1492, when 3 small vessels commanded by Cristopher Columbus arrived to a New World, America. This historic encounter between two worlds is one of the most important events in history. And it is the origin of Spain’s long and enduring relationship with our partners of the Ibero-American Community of Nations, with whom, among other strong ties, we share a common language. This 12th October takes place in the midst of an unprecedented pandemic which has greatly hit our country. The impact of this pandemic requires that we bring out the best in ourselves, our citizens, the entire society, and our institutions. It is also therefore an occasion to remember all the values that portray us as a country: determination, resilience, innovation, creativity, diversity and, above all, reliability and security. The COVID-19 pandemic has also put before Ghana many new challenges, and in this regard, I would like to commend the Government and the people of Ghana for their resolution in fighting the disease and for their success in controlling its spread. We were happy to help and facilitate, together with the Office of the President, the return of nearly 200 Ghanaian permanent residents in Spain, who found themselves stranded in Ghana because of the pandemic. Spain and Ghana established

diplomatic relations in 1967. A year later, the Spanish Embassy in Accra was inaugurated. Relations have been excellent since, and continue to grow. The recognition of Ghana as a priority country for the external action of Spain in our III Plan for Africa, adopted last year, paves the way to further strengthening this relation in the coming years. We seek to establish a partnership with Ghana based on trust, dialogue and shared responsibilities. This Embassy through the Economic and Commercial Office will continue working towards reinforcing economic and commercial relations between our countries. Ghana continues to increase her share in our bilateral trade, and 2019 marked the historical peak record of exchanges in both directions, with Ghana becoming the second market for Spain in West Africa, after Nigeria. I am convinced that the Spain-Ghana Chamber of Commerce established in 2019 will further contribute to foster economic and commercial ties in the coming years. In terms of peace and security in Ghana and the West African region, Spain actively contributes to the fight against violent extremism and terrorism in the Sahel, as well as piracy and all forms of organised crime in the Gulf of Guinea, where we deploy a vessel that carries out training exercises with the Ghanaian Navy twice a year. A new programme on preventing electoral violence and providing security to the Northern borders will soon launch, under the umbrella of the European Union and led by Spanish agency FIIAPP. FIIAPP has also been implementing for the last few years a very successful programme on Accountability, Rule of Law and Anti-corruption, working alongside relevant government institutions and other strategic national

stakeholders. Spain is also committed to supporting Sustainable Development in Ghana based on inclusive economic growth that is capable of generating decent employment for the youth. Spain, both bilaterally and in the context of the European Union, wishes to contribute to make sure that the demographic dividend is transformed into economic growth, stability and prosperity. In this globalised and interdependent millennium we live in, we need to draw up a shared project to implement the 2030 Agenda with its 17 Development Goals. Among our development programmes are the projects under the Spain-Ghana Debt Swap Agreement. It is worth noting that a Bi-national Committee was created under this Agreement in order to take all relevant decisions by consensus. This is yet another example of strong cooperation between our two countries. President Nana Akufo-Addo recently inaugurated a project providing water for several communities in the Volta Region. A project on building several bridges and other infrastructure is also about to be finished. Both projects have been implemented by Ghanaian companies. We have a very good relationship with the Ministry of the Interior and the Ghana Immigration Service, with which we cooperate to inform the general public, and especially the youth, on the dangers of irregular migration. We have funded a Migration Information Centre in Tamale to provide expert advice on safe and legal migration. It is the second centre of its kind (after Sunyani). On 30 September, I attended the official handing-over ceremony of 6 Mitsubishi crosscountry vehicles, 23 computers and other accessories to help build the

capacity of the Ghanaian security forces that work on the ground to control borders and fight criminal networks involved in smuggling and human trafficking. Our Minister of Interior paid a visit to Ghana in February 2019, and we expect more high-level visits once the COVID-19 pandemic allows it. Last but not least, in the field of culture, we strive to bring the Ghanaian and Spanish scenes closer together. Indeed, Spanish is one of our cultural treasures. Almost 500 million people speak Spanish as their mother tongue, which makes it the second-biggest language in the world, only bested by Chinese. And while the proportion of people speaking English and Chinese is decreasing, Spanish speakers are increasing all around the globe. Therefore, learning Spanish today is a sound investment for the future – also in Ghana. We are proud of our collaboration with the Spanish section of the University of Ghana, and particularly with the reintroduction of the official examination in Spanish language, known as DELE, in Accra. It is with great pleasure that we saw last year Ghanaian bands such as FRA! and Kyeyeku succeeding in Spanish festivals, Spanish photographer Eduardo Vázquez presenting in Jamestown his incredible pictures capturing the beauty of Ghana and its people, and Spanish classical guitarist Eduardo Jiménez performing earlier this year in Accra with the Ghana National Orchestra. We hope to resume our cultural programming very soon. We are going through a very difficult period in 2020, but Spain’s partnership with Ghana will continue to develop in strength. The potential is huge, and very good things will come out of it for both our countries.

MONDAY OCTOBER 12, 2020

Spain for sure...

MONDAY OCTOBER 12, 2020

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MONDAY, 12TH OCTOBER, 2020

Interview with the Trade Counsellor, Economic and Commercial Office of Spain in Accra The Ghanaian economy is currently embarking on an aggressive industrialisation drive. What are the prospects for trade between the two countries, and how does the Economic and Commercial Office intend to partner the Ghanaian government on this journey? As the country continues to develop, we can expect a change in the sectoral composition of the bilateral trade, with higher value added in both imports and exports. From our office we are open to discuss with our Ghanaian counterparts their priorities and try to help them to find possible partnerships with Spanish firms. We will also continue to work with the public sector within the framework of the Ghana Spain Debt Swap for Development programme, which is currently financing two projects: the installation of 13 bridges in different regions of Ghana and the construction of systems to supply water to 35 communities in the Volta Region.

Can you explain in a few words the functions of your office?

countries such as France, Italy or the United Kingdom. This increase has also taken The Economic and Commercial place with the exports of goods Office of Spain in Accra is the from Ghana to Spain. Since 2016 specialised official instrument the annual value has consistently for the internationalisation of the surpassed 140 million of euros, Spanish economy and the provision reaching a peak of over 300 million of services and assistance to Spanish in 2018. companies and entrepreneurs in Ghana, Liberia and Sierra Leone. Your office has continuously We manage the economic and promoted and facilitated foreign commercial institutional relations investments from Spain to Ghana, in those three countries and also aside providing assistance to produce economic information that Ghanaian companies looking for might be of interest to Spanish firms. Spanish products and services. What is the long-term goal for this What is your assessment of Ghana- strategy? Spain bilateral trade relations over the years? It is important to note that our office is part of a network of 98 Undoubtedly, there has been a Economic and Commercial Offices deepening in the trade relations all around the world, all of which aim between both countries. to promote the internationalisation During the last decade we have of the Spanish economy. The seen a very positive evolution of underlying motive is that we believe Spanish exports to Ghana, only that there are multiple benefits temporarily interrupted by the from the fact that our firms export slowdown of the Ghanaian economy and invest abroad. For example, during the period 2014-2016. In firms that export tend to be more general, since the global economic productive, as they can better achieve crisis that started in 2008, there has scale economies and diversify risk been a structural transformation by not focusing exclusively on the of the Spanish economy, with a national market. Investing abroad rapid internationalisation. As a also has advantages, as it allows the result, Spanish exports of goods and firms to become more efficient and services have skyrocketed from 27% to overcome barriers such as tariffs of GDP in 2010 to 34% in 2018, a or distance. bigger share than other European

continuously learning new things. How do you intend to deepen relations between these two countries in terms of trade volumes? We are aware that export and foreign investment decisions can be costly for firms, especially at the beginning of the internationalisation process. Firms will only decide to explore foreign markets and get out of their â&#x20AC;&#x153;comfort zoneâ&#x20AC;? if the perceived potential benefits outweigh the costs. What we can do from our office is try to help Spanish firms that are already present in the Ghanaian market and those that are deciding whether to enter the market by providing them information and support. The aim is to lower the costs and increase the perceived benefits of starting to work with Ghanaian companies. In the coming years we will try to continue the work that we started more than a decade ago and find innovative ways to promote the internationalisation of the Spanish economy. How have Spanish companies been performing in Ghana and what is their contribution to the local economy?

In the past few years there has been an important increase in the number of Spanish companies Spainâ&#x20AC;&#x2122;s food and beverage sector operating in Ghana, more than provides numerous opportunities tripling since 2009. Additionally, for Ghanaian business owners many of the companies already to work with their Spanish present in the market have expanded counterparts. What is your office their operations. Therefore, we can doing to facilitate linkages in this say that, in general, the performance and other critical sectors? of the Spanish companies present The food and beverage sector is in Ghana has been positive. This of extreme importance to us, as an performance has brought multiple important share of our exports to benefits to the local economy: Ghana and our firms present in the job creation, transfer of knowcountry are related to it. The sector how, more fiscal revenues, better also presents important linkages adaptation of products to the needs with our gastronomy, which is of Ghanaian consumers, etc. recognised as one of the best in the world. More information on In your estimation, where do you specific products can be found on see Ghana and Spain economic the following official website: www. relations in the next few years? foodswinesfromspain.com It is always complicated to In the case of Ghana, since 2015, the Economic and Commercial do predictions, but taking into Office has been organising an annual account the positive trend of the last event to promote Spanish wines, years, the fact that the COVID-19 with both Ghanaian and Spanish pandemic has barely affected the companies which distribute wines trade between both countries, and from our country. The event also the positive effect that the gradual has a formative part, with several implementation of the interim seminars with a Ghanaian wine Economic Partnership Agreement expert to explain the characteristics between the EU and Ghana should of Spanish wines while tasting a have on trade volumes, we expect few of them that are available in the to see a strengthening of bilateral trade relations in the near future. Ghanaian market. That said, we do not focus The same can be expected for exclusively on some sectors, but investments, as most of the times rather we are open to any company exporting is a preliminary stage that wants to approach us. In the for foreign investments and we are past eleven years we have dealt seeing that each year more and more with most of the sectors and have Spanish firms are attracted by the a deep knowledge of the business opportunities offered by Ghana. environment in Ghana (and also Liberia and Sierra Leone), but we are

Spain for sure...

MONDAY OCTOBER 12, 2020

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MONDAY, 12TH OCTOBER, 2020

Profile of The Coca-Cola Bottling Company of Ghana Limited

he Coca-Cola Bottling Company of Ghana Limited (TCCBCGL), part of the Equatorial Coca-Cola Bottling Group which is headquartered in Barcelona, Spain, is the authorised bottler of Coca-Cola beverages in Ghana. TCCBCGL is located at Spintex, where it produces the widest range of non-alcoholic beverages in the country. The company’s solid investment in increasing production capacity has greatly improved total product output, and as a result, it has the most extensive pack portfolio which meets the purchasing power of the different economic classes of consumers.

For more than 25 years, TCCBCGL has provided daily refreshment for many Ghanaian homes with the promise of sharing happiness that delights consumers. This has been executed through rigorous enhancements in the company’s route-to-market, continuous understanding of consumer needs, and social interventions which impact the wider community. Not only has this soft drink production giant demonstrated leadership in manufacturing capacity and varied product portfolio, it has also displayed an unmatched commitment to supporting communities through

education, health and well-being, economic women empowerment, youth in entrepreneurship, conservation of the natural environment, and increasing access to potable water. With the successes chalked in terms of improving business and growing sales, the company isn’t blind to the impact its portfolio has had on the environment. This is why TCCBCGL continues to promote its returnable glass bottle and drives that business as the most affordable pack for the mass of its consumers. Sixty percent of its products are sold in returnable glass bottles, which have lower imprints in terms of post-

consumer waste. Furthermore, The Coca-Cola Bottling Company of Ghana Limited has been investing heavily in effective plastic waste management by collaborating with other eco-conscious organisations, under the Ghana Recycling Initiative by Private Enterprises (GRIPE), to beat plastic waste pollution. The Coca-Cola Bottling Company of Ghana Limited is excited about the future and will continue to make meaningful economic and social contributions to the lives of the millions of Ghanaians it serves every day.

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Spain for sure...

MONDAY OCTOBER 12, 2020 MONDAY, 12TH OCTOBER, 2020

ÂĄFeliz dĂa de la Hispanidad! Happy Hispanic Day! Your Partner in Spanish-Ghanaian Trade The Spain-Ghana Chamber of Commerce (SGCC) is a private association with the main aim of promoting and increasing bilateral relations between Spain and Ghana, offering a wide range of services to support companies in both markets. Our mission is to promote relationships between Ghana and Spain, to increase the Spanish presence in the area, both economically and socially, to promote and represent members, to boost existing relationships to improve the interaction between Spain and Ghana, and to improve commercial trade in both directions. The chamber, which was initially a pilot project to support Spanish companies and investments here in Ghana, has grown to become more than that in less than 2 years of its establishment. With over 50 companies and still counting, the Spain-Ghana

Chamber of Commerce has become the fastestgrowing chamber of commerce in Ghana and the preferred choice for a chamber of commerce. The chamber is also focused on promoting, informing and supporting Spanish and Ghanaian companies. Our monthly events, such as networking cocktails, business breakfasts and conferences, are the perfect places to expand contacts or create business relationships. We also provide customised services, helping to establish business relationships in Spain and Ghana and promoting their international potential. We are also able to facilitate trade investment and financial and industrial exchanges between Spain and Ghana. Our companies are in the following sectors: infrastructure, renewable energy, construction, mining, distribution and wholesaling, logistics services, legal services, IT solutions, and manufacturing.

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Spain for sure...

MONDAY OCTOBER 12, 2020 MONDAY, 12TH OCTOBER, 2020

Some of the events we have organised engage with relevant ministries and companies in Ghana with regard to trade. These trade missions have achieved the needed objective of promoting and increasing bilateral trade relations between Canary Islands and Ghana.

Taxation Business Breakfast: This event sought to draw the attention of our members to the taxation system in Ghana and also educate them on how to deal with taxes and the relevant institutions.

Webinars with Different Chambers of Commerce in Spain: Spain-Ghana Chamber of Commerce has been involved with different chambers of commerce in Spain to project the opportunities in Ghana and increase Spanish investments in the country.

SGCC Speed Networking: A networking event that focused solely on all aspects of construction, construction materials and furnishing. This brought together key players in the construction sector to network, making sure we bring the added value which is our hallmark to our members.

Trade Missions from the Canary Islands, Spain:

SGCC Edutainment Cocktail:

Spain-Ghana Chamber of Commerce hosted and prepared the A cocktail event filled with a mixture of business presentations agenda for companies in the Canary Islands which wanted to from members, music, food and drinks.

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Spain for sure...

MONDAY OCTOBER 12, 2020 MONDAY, 12TH OCTOBER, 2020

The Canary Islands as a strategic location for the bilateral economic relations between Spain and West Africa

For many years both business and other relationships with Africa have been a priority for the Canary Islands. Spain is the nearest country to the African continent and the only one that has a physical border with it. In addition, over 2 million Spaniards geographically live on African territory, specifically in the Canary Islands, Ceuta and Melilla. Due to our interest in Africa, our proximity to it and the good understanding we have with the west coast of the continent, the Canary Islands, and specifically Gran Canaria, felt the need to start the first Spain-ECOWAS forum at the start of 2020, in order to bring Canarian, African and Spanish institutions together around the same table. The summit intends to open a channel of communication between the chambers of commerce of both regions (Africa and Spain) and to foster a greater understanding among representatives of the

private sector, in addition to facilitating business and investor relationships. The Chamber of Commerce of Gran Canaria, host and main organiser of the forum, has always dedicated most of its international effort to increasing business relationships with Western Africa and improving trust and business competitiveness through cooperation, by means of the provision of economic data and the organisation of business meetings and briefings. Unfortunately, due to the coronavirus (COVID-19) and the numerous confirmed cases in Spain, Nigeria, Morocco, Senegal and France, which would have all been possible departure/transit/ main entry points of the African delegation into Las Palmas, we have had to postpone the said summit. However, our main objective regarding West Africa continues to be an increase in business relationships between our

two regions, through strategic investment of Spanish companies and steps intended to improve the business and investment climate. It is due to this, and to the fact that the European Union plans to create a solid financial agenda to improve relationships with its African associates. The Commission´s communication COM 643 states that their objective is to “favour a substantial increase of both African and European investment, boost trade, foment the creation of employment opportunities, and contribute to sustainable and inclusive development (…)”. As part of this association between the EU and AU, there will be an alliance concerning private investment and sustainable employment. This alliance will focus on Africa´s economic potential and on the mobilisation of the private sector, through the unblocking of investments and by exploring great opportunities which can be of benefit to both the African and European economies.

Due to this, the following three courses of action are recommended: • To promote strategic investment in order to create employment and strengthen the role of the private sector • To invest in people, in their education and skills • To strengthen the business environment and investment climate In addition, the EU created the Economic Partnership Agreement for the member countries of ECOWAS in order to promote economic and social development in Western Africa. Through these and other prior plans, Spain wants to provide a boost to this ambitious project to reinforce relations with Western Africa, and to take advantage of the opportunities that intra-African economic and trade integration offers. Within the context of all these activities, the Chamber of Commerce of Gran Canaria is already working on a new, innovative digital project which we will present to the European Commission alongside the Spanish Chamber of Commerce, and which we hope will further reinforce the existing trade relations between ECOWAS and Spain. We trust we will be able to give you further good news in 2021.

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Spain for sure...

MONDAY OCTOBER 12, 2020 MONDAY, 12TH OCTOBER, 2020

LaLiga is using sports to make a difference across Africa Top professional Spanish football league, LaLiga, does not only define itself by the outstanding display of football skills it brings to fans every week; it also values the principles of equality and inclusion, and the commitment to empower youth through grassroots initiatives. In Africa specifically, we have seen displays of the league’s dedication to uphold these ideals and generate true social impact. In this year alone, LaLiga has had tremendous success with its hands-on approach to nurturing football talent on the African continent, as well as staying closer to African fans.

Spreading the values of sport In partnership with the Nigerian Premier Football League (NPFL), LaLiga trains youth football coaches to adopt the unique LaLiga training methodology. The Coaching Clinic, as it is referred to, has trained over 400 youth coaches from the 20 NPFL clubs, the national youth teams, and other youth clubs in its four editions. The NPFL-LaLiga partnership was signed in 2016, when LaLiga Nigeria Office was opened, now based in Lagos, and has since seen several exchange projects between the two leagues, including a tour of Spain by an NPFL All-Star team, an all-star friendly match between Atletico and Nigeria B team, and the annual U-15 tournament, modelled after the LaLiga Promises Tournament. In Angola, LaLiga held the Craques da Escola, an event where 12 champion teams from each school competed for the 2019 title. It was broadly covered by the media, including the Public Television of Angola (TPA) and Radio 5 (Radio Deportiva de Angola). LaLiga offered merchandising kits for the two finalist teams, as well as clothing for the referees

and coaching teachers. “LaLiga has a key role to play in spreading the values of sport, and we will continue to embrace various opportunities to empower the communities where we have presence,” said Juan Botella, LaLiga’s Regional Manager for Africa. This was further confirmed after a strategic consultancy agreement was signed between Sevilla and Tanzanian giants Young Africans (Yanga SC) to help them better manage fan activities, digital transformation, marketing and sales, economic control, digitalisation, and international development. This partnership will not only increase interest in the sport, but also help more local football talent emerge in the East African region.

Girona striker Michael Olunga reached out to community members to deliver key messages on the spread of COVID-19 in Kenya. In addition to this, LaLiga held sessions on rural sanitation during Safaricom’s Chapa Dimba tournaments and its own Coaching Clinics. In South Africa, LaLiga held a friendly charity tournament between Orlando Pirates and Real Sociedad. The event was used to encourage South Africans to donate to the Solidarity Fund – a government fund to help combat the pandemic. November 2020 marks LaLiga’s fifth year of making a difference on the African continent. By collaborating with local partners like UNICEF, Budweiser, and official broadcaster SuperSport, LaLiga Empowering has proven that it’s committed communities to not only developing talent, but also creating stronger and LaLiga continues to drive pos- longer-lasting relationships that itive change through community promote its values. outreach projects. The collabo--END-ration between the LaLiga Foundation and NGO Zerca y Lejos sought to educate communities in Cameroon against excessive alcohol consumption while teaching the youth about the importance of healthy leisure activities. “Football has become a vital tool to reach this young population who are most affected by the problem,” continued Juan Botella. “We encouraged boys and girls from different towns in the area to participate in a tournament, while highlighting the causes and consequences of alcohol consumption. Our goal is to continue spreading awareness and to foster a strong sense of health in the community through sports.” At the start of the COVID-19 outbreak, LaLiga also partnered with UNICEF to raise awareness about key issues in Kenya – namely, sanitation and disease prevention – through football. This was achieved through a communication campaign whereby former

About LaLiga LaLiga is a global, innovative and socially responsible organisation, a leader in the leisure and entertainment sector. It is a private sports association composed of the 20 clubs and public limited sports companies (SADs) in LaLiga Santander and 22 in LaLiga SmartBank, responsible for the organisation of these national professional football competitions. In the 2018/19 season, LaLiga reached a cumulative audience of more than 2.7 billion people globally. With headquarters in Madrid (Spain), it is present in 55 countries through 11 offices and 46 delegates, covering 84 countries. The association carries out its social action through its Foundation and is the world's first professional football league with a league for intellectually challenged footballers: LaLiga Genuine Santander.

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Global partnerships for an African recovery By Landry Signé and Amenah Gurib-Fakim

he spread of the COVID-19 pandemic has profoundly affected developed and developing countries alike, despite vast disparities in initial response capacities. Global leaders were especially concerned about the disease’s potential implications for Africa, given the continent’s lack of financial and medical resources, weak health-care systems, fragile economies, and vulnerable populations. But preparation and cooperation among African leaders and African Union agencies, particularly the Africa Centers for Disease Control and Prevention, have resulted in many successes – including increased testing capacity, resource mobilization, and coordinated policies to prevent and contain the coronavirus’s spread and promote economic recovery. Despite these successes, Africa is still facing significant challenges. These include a continued rise in COVID-19 cases, a need for greater testing capacity and improved health infrastructure, difficulties acquiring medical and food supplies, weak social-welfare systems that are struggling to support vulnerable populations during the economic crisis, and high government debt coupled with a need for increased spending. Although African countries are capable of continuing their progress on the long road to recovery, external support would greatly bolster their efforts. Aside from humanitarian principles and solidarity, a strong and rapid African recovery is in the world’s interest. As long as the virus is unchecked in some regions, no part of the world can be safe from it. Moreover, if COVID-19 further weakens fragile African states or causes health or economic disasters on the continent, a migration crisis or increased threats to international security could ensue. We therefore propose six ways the world can cooperate with Africa to improve the continent’s crisis response, accelerate its economic recovery, and build momentum for its postpandemic development.

First, external partners can provide sufficient resources and investment to enable effective COVID-19 responses and inclusive post-pandemic economic recoveries. Although multilateral and bilateral partners have already provided some financial support in the form of debt relief, loans, and grants, African governments need much more. Some estimate the continent’s pandemicresponse funding gap at about $100 billion annually over the next three years. Given Africa’s health-care and economic vulnerabilities, additional financial support and debt relief are critical. Second, partners should support and invest in the African Continental Free Trade Area, which is one of Africa’s best economic-recovery plans. The AfCFTA aims to increase intraAfrican trade significantly, and thus develop regional value chains, local manufacturing, and sourcing of intermediate and final goods. By reducing the continent’s vulnerability to external shocks through decreased dependence on non-African trade, the agreement will foster economic diversification and resilience, thereby promoting Africa’s integration and assisting its recovery. In addition to backing and investing in the AfCFTA, partners can provide expertise regarding trade regulations and manufacturing capacity. Supporting private-sector growth is a third way to unlock Africa’s economic potential, representing a significant opportunity – in terms of both trade and investment – that will benefit Africa and global businesses. Although both the formal sector and the large informal sector are currently struggling, owing to lockdowns and economic restrictions, private firms will be crucial to Africa’s recovery and future development. External partners can support African

businesses through increased investment, including in small and medium-size enterprises that are today trying to stay afloat and pay their employees. International partners can also help to improve the business environment, for example by overseeing a mandatory regulation process. Next, external partners can support Africa’s efforts to embrace the Fourth Industrial Revolution (4IR) and achieve a successful digital transformation. During the pandemic, technology has enabled real-time medical forecasting and modeling, better communication between leaders, and the virtual operation of businesses. But Africa’s technology infrastructure, specifically Internet access, lags severely, and the continent has benefited less from digital technology than the rest of the world. Partners can help accelerate the 4IR in Africa by sharing technological innovations, collaborating in adapting them to African contexts, and providing investments that will unleash young African innovators’ technological potential and enable existing innovations to be scaled up. Fifth, the world can help to ensure that no African is left behind, including through job creation, skill-building, social protection, and gender equality. Vulnerable groups such as those living in urban slums or rural areas, youth, women, and the poorest families need extra government support, but social-welfare systems are weak, especially in fragile states. External partners should therefore give special consideration to assisting the most-affected countries and communities by channeling resources toward these populations, instead of giving unconditional aid to governments, and by collaborating with African leaders to create innovative

policies that benefit these groups. The final priority is to help Africa address its fragilities and bridge the gaps between policy goals and outcomes, including through evidence-based policy research. Ineffective institutions, corruption, and a lack of accountability can undermine even perfect policies. Partners can monitor projects or provide experts to assist in implementation, and can promote good governance through measures and indicators such as Transparency International’s Corruption Perceptions Index, the Fund for Peace’s Fragile States Index, or the World Bank’s Worldwide Governance Indicators. Research institutes and think tanks such as the Brookings Institution are playing an important role in this effort. Each of these six proposals can help Africa to combat and recover from the COVID-19 pandemic, but they are also critical for realizing the continent’s potential and accelerating its future development. By collaborating with external partners to secure additional resources, develop new initiatives, and invest in key sectors, African countries can mitigate the virus’s immediate impact and hasten economic recovery while building resilient systems for long-term growth and success. ---

This commentary is co-signed by Joyce Banda, a former president of Malawi; Rosalía Arteaga Serrano, a former president of the Republic of Ecuador; Phumzile MlamboNgcuka, United Nations UnderSecretary-General and Executive Director of UN Women, and a former vice-president of South Africa; Laimdota Straujuma, a former prime minister of Latvia; Yves Leterme, a former prime minister of Belgium; and Rovshan Muradov, SecretaryGeneral of the Nizami Ganjavi International Center.

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The Future of Work Capsules: It’s time to support local businesses By Baptista Sarah Gebu (Mrs.)

he future of work must address the future of businesses and their sustainability. When businesses are protected and they survive, jobs will also be protected and they will also survive. The two work hand-in-hand. For businesses to thrive now and in the future we need to make purposive attempts at protecting jobs and businesses. The future of work cannot be business as usual as it was prior to the emergence of the covid-19 pandemic. As we may already be aware, the coronavirus pandemic is offering global economies what quick adjustments to make to the future of work. The future of work as per research presents some new normal observation; the need for “Hybrid Professionals” to be in high demand, working from home and not in offices to be introduced, the need to work with an organization with purpose, ability to learn to managing the ‘always on” culture caused by technology, adapting to the fact that the concept of a job for life won’t exist, ability to create greater immunity for the human systems and our ability to enact effective systems and structure in support of virtual work among others. It’s inevitable to ignore the concept of the future of work as many organizations have already embraced this concept, while others are lacking far behind since they cannot forestall the future, due to lack of understanding, or knowledge on the subject matter. Of course, these present challenges, nevertheless many organizations also see it as a wonderful opportunity to create positive change and to start to build purpose-driven organizations that priorities people and planet alongside profit (PPP). In anticipation to avoid a lack of knowledge similar to this, nations will become inward-looking, human physical interactions will reduce as jobs will be moved online. There are very different and contrasting industries globally, but I’ve generally found

that whatever the nature of a business or organization, they are rarely immune to change. And change is happening very fast. As a country, it’s imperative we prepare. This preparation should excite and involve the government, the business leaders, the entrepreneurs, students, families and even churches. Let’s not perceive these conversations taking place in policy and business circles as been too early for us. Let’s all be forward looking as most policymakers have commenced the rethinking and restructuring process and the engagement to consider the right ways to approach the future of work. We’re having an interesting time in our history due to the concept of the future of work as this tête-à-tête comes up in almost every conversation whether with professionals, entrepreneurs, students, workers, CEO’s, and or policymakers. It’s the topic of the day. And typically, when this topic comes up, there are some issues embedded within it as to what impact artificial intelligence and automation will have on work and jobs, and weather Ghana and other global economies will have enough work and decent jobs left now and into the future among others. The government of Ghana through the Ministry of Business Development in partnership with the International Chamber of Commerce (ICC), United Nations Development Programme (UNDP) and the Business for Peace Foundation; had the President of the Republic His Excellency Nana Akufo-Addo launched the “For Better Business Together (4BBT) initiative held at Kempinski Hotel in Accra, Ghana which I joined virtually under the theme “Post COVID-19 - Rebuilding Global Businesses Together”. The 4BBT initiative was launched to advance the recovery and future resilience of businesses in Ghana in quest of the Sustainable Development Goals. But it is worth noting that; the attainment of the Sustainable Development Goals (SDG’s) has not been on tract even before the emergence of this global COVID-19 pandemic. As a result, businesses, governments and

continents need to collaborate to support its people, the planet, promote peace, prosperity and partnerships amongst other. It was exciting noting that Ghana was the only African country earmarked to benefit from this initiative together with Columbia, Turkey and the Philippines. To support businesses to work for everyone, every day and everywhere post covid-19 this 4BBT initiative will function as a focal point for global and local initiatives in Ghana. The 4BBT programme aims to support economic recovery, nurture entrepreneurship, and strengthen the sustainability and resilience of businesses for the future”. The Word Bank and The International Monetary Fund have rated Ghana as the fastest growing economy in the world for 2019. Ghana has a young age structure, with approximately 57% of the population under the age of 25. Small and mediumsized enterprises (SMEs) are the backbone of the Ghanaian economy as they represent about 85% of businesses, largely within the private sector, and contribute about 70% of Ghana’s gross domestic product (GDP). This should be welcome news to encourage policy makes to enact purposively policies targeted at saving our SME’s and project that Ghana case as a learning curve for other countries. Policy enactment should address among other things training needs to close the knowledge gap and the know-how, scale up ideas to encouraging businesses think global and not local. This is possible with the “IEC” model of inspiring a transformational mindset to educating that, thinking global is appropriate now and for the future and connect SME’s to global investors, business mentees and encourage coaching and mentoring for starts up’s as well. Businesses cannot afford not going online. The bricks and mortar era are gradually making ways for virtual online businesses. The hybrid approach will be a step in the right direction during this era of the new normal. Businesses cannot automatically leverage post

COVID-19, they must be nurtured to grow and scale up. Policy enactment must consider scale up of businesses beyond one generation to the other. We need to live to see most Ghanaian and African businesses grow and sustained beyond decades. Public and private collaboration at both national and the international level will come as a welcome idea. Government cannot support protecting businesses without protecting jobs. Startup business initiatives must look out for and empower campus startup, entrepreneurial clubs, and women entrepreneurial businesses as well as the vulnerable groups. “The COVID-19 pandemic has shown us that it is more important than ever for the public and private sector to collaborate – at both international and national level – to enable businesses and the people they employ, to ride out the pandemic and to emerge more resilient and sustainable to face the future. The 4 Better Business Together programme is a concrete example of the potential of public-private collaboration to have a real impact on the ground.” Initiatives under the 4BBT umbrella include the establishment of an Accra Hub of the ICC Centre for Entrepreneurship, development of SDG-investor maps by UNDP, and the provision of support for SMEs through the COVID-19 Private Sector Global Facility and ICC’s global Save our SMEs (SoS) campaign. 4BBT will also provide a platform for the global launch of the Business for Peace’s Future of Business programme. Announcing plans to launch the Accra Hub of the ICC Centre of Entrepreneurship, Valentina Mintah the ICC Executive Board member said: “We are very proud to be having a Centre of Entrepreneurship here in Ghana to ensure we are ready with the necessary skill sets and tools to harness the untapped potential by truly knowing and embracing our local context whilst we also think global on standards and opportunities.”

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CONTINUED FROM PAGE 17 Speaking at the event, the president of the republic noted that the “For Better Business Together (4BBT) programme is a new global partnership to advance the United Nations Sustainable Development Goals (SDGs) and strengthen businesses in the world following the novel COVID-19 pandemic, which continues to have a devastating effect on the economies of the world, especially on micro, small and medium enterprises. He added, the programme is aimed at addressing some of the local sustainability challenges and mobilize local entrepreneurs and businesses to find a longterm solution. Present was the Norwegian Prime Minister Erna Solberg and President Nana Akufo-Addo, both Co-chairs of the UN Secretary-General’s Eminent Group of Advocates for the SDGs. Other speakers include Dr. Ibrahim Awal - Minister of Business Development, Ghana; Valentina Mintah, International Chamber of Commerce; Charles Abani, UN Resident Coordinator in Ghana, Silke Hollander, Deputy Resident Representative of UNDP Ghana; Yofi Grant of GIPC, Marius Døcker -Business for Peace among others. The launch marks the 20th anniversary of the United Nations Global Compact, an initiative driven by the former U.N. Secretary General and Ghanaian diplomat, Kofi Annan. Ghana and Africa have talents in adequate numbers and as such need that enabling playing field to excel. It saddens my heart when I come across news items making the headline making claims of black talent shortages. According to nbcnews.com recently, the C.E.O of Wells Fargo Charles Scharf was quoted to have said ‘there is a very limited pool of black talents to recruit from”. Seen by Reuters, Scharf in a memo said “while it might sound like an excuse, the unfortunate reality is that there is a very limited pool of black talent to recruit from,” The head of the US bank Wells Fargo later apologized for remarks that attributed the lack of diversity in the bank’s top ranks to a shortage of qualified minority candidates. The comments, made in a June call this year with employees and reiterated in a memo, drawn widespread criticism after being reported. The Bank chief Charles Scharf said he had made an

“insensitive comment reflecting his own unconscious bias and apologized’ To this end, though to err is human and to forgive is divine, we need investors who will value and not demine the African talent. As a continent, we need to emancipate ourselves also from mental slavery and inferiority complex. This paradigm shift must be clear and bold. We need to see a departing culture of “the pull him/her down” syndrome where most predominately black talents are not seen supporting other black talents to excel. Collaboration and co-existence are key to our development together. Black or white, Hispanic or Asian, we should learn to collaborate and commit to values that promote and not segregate talents as together we can all achieve. The world is increasingly African as per research. We need to take steps to highlight the positive synergy of these research findings. To this end, the African Innovation and Entrepreneur Center (AIEC) recently organized in September 2020 an ideal competition as part of activities leading towards its virtual 7th Edition of the African Entrepreneurial Conference slated for November 26-27, 2020. We are excited to announce the top 5 winners to receive a

MONDAY OCTOBER 12, 2020

3-month mentoring support programme. Posrunna Solar -the winner is an energy source provider, Malian Agribusiness Solutions- a social enterprise supporting smallholder farmers’ employment, Farm Business Software - a digital software provider for farm-based organizations, Right Raise creating a forum for the business aspiring African community to network and Marie-Louise using organic cotton as a poverty alleviation tool. The above start-ups have identified pressing social problems and developed clever solutions. FoReal HR Services in collaboration with AIEC and is looking forward to the October event scheduled for 17-18 this year. Are you willing to learn about more start-ups based in Africa or compete in the next session? Applications are opened. Send us an e-mail to forealhrservices@ gmail.com | call or WhatsApp +233(0)242313313 / 0262213313. We are grateful to each one of the participants. Thank you for your creativity and passion which was evident in each business pitch you delivered. For all your business consultancy needs, please think FoReal HR Services. Why not outsource those other human resources needs including

labour recruitment, selection and placement; training and development as well as your relocation support services. About author Baptista is a human resource professional with a broad generalist background. Building a team of efficient & effective workforce is her business. Affecting lives is her calling! She is an HR

Generalist, strategic planner, innovative, professional connector and a motivator. You can reach her via e-mail on forealhrservices@gmail. com You can follow this conversation on our social media pages Facebook / LinkedIn/ Twitter / Instagram: FoReal HR Services. Call or WhatsApp: +233(0)262213313. Follow the hashtag #theFutureofWorkC apsules #FoWC

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The 2020 Financial Year of Ghana: Indirect Tax Reforms Arising out of the National Budgets and the COVID-19 Pandemic Part 1 This article is the first in a series of articles exploring the 2020 Mid-Year Fiscal Review, in light of the initial 2020 Budget Statement and Economic Policy of Ghana, and the COVID-19 pandemic we all honestly did not anticipate.

Abeku Gyan-Quansah

Michael Siaw Larbi

The 2020 National Budget had the very promising theme of “Consolidating the Gains for Growth, Jobs and Prosperity for All”. With very bright prospects when the Minister of Finance presented the budget to Parliament in November 2019, little did anyone expect the COVID-19 pandemic to strike and send shock waves across the entire globe. Amidst several interventions by the Government on the tax front to help alleviate the burden on citizens, whilst ensuring the overall fiscal policy goals were met amongst others, the Government had to literally go back to the drawing board in terms of overall monetary and fiscal policy targets. In light of this, this series of articles seek to explore the position of the initial 2020 budget estimate and the mid-year fiscal review from the perspective of indirect taxes. It will also touch briefly on indirect tax measures rolled out by the Government as part of the COVID-19 tax reliefs. This particular series will focus on indirect tax proposals from the 2020 budget, before COVID-19 hit. The next in this series will then focus on the COVID-19 indirect tax reliefs and the 2020 Mid-Year Review on indirect taxes.

The 2020 Budget Statement and Economic Policy - Indirect Tax Proposals At the start of the year, the Government expected the 2020 indirect tax revenues to be GH¢ 24.91 billion. In July 2020, this amount was revised to GH¢ 20.62 billion, a reduction of approximately 17.2%. To achieve the initial revenue target, several tax policy measures were introduced to complement existing tax revenue measures. The indirect tax policy measures included the renewal of the Special Import Levy, the implementation of the taxation of e-commerce transactions and the removal of Value Added Tax (VAT) on certain services. These are briefly discussed below, together with an indication as to whether based on publicly available information, the measures have been implemented as at the time of the presentation of the 2020 Mid-Year review:

Renewal and Extension of Special Import Levy (SIL) - Implemented The Special Import Levy Act, 2013 (Act 861) was passed in 2013 to impose SIL at 1% or 2% levy on the importation of specified goods. In 2017, the 1% SIL was abolished, whereas the 2% SIL was extended at the

end of 2017 for a further two years to December 2019. The Government indicated in the 2020 budget that the 2% SIL was to be extended from its initial expected end date of December 2019 to December 2024. This was contrary to expectations and the extension was operationalised by the passage of the Special Import Levy (Amendment) Act, 2019 (Act 1004). Following the extension of the SIL by a further five years this time as opposed to the previous two-year extension, it was clear that the Government did want to lose out on the tax revenue generated from the levy. This could have been necessitated by the fact that no new taxes were to be introduced and compliance measures were insufficient to raise the needed revenues. As expected, this move by the Government was initially met with an outcry from the business community, particularly importers, who were expecting the cost of their imports to reduce had the levy been abolished.

Exemption of VAT on Management Fees charged by Private Equity, Venture Capital and Mutual Fund Companies - Implemented The Government of Ghana in recent times, has clearly shown an increased focus on reforming Ghana’s financial services sector. The Value Added Tax Act, 2013 (Act 870), introduced some changes to Ghana’s VAT landscape. Included in those changes was the imposition of VAT on “feebased” financial services. Following the presentation of the 2017 Budget Statement and Economic Policy, this was subsequently abolished, effectively making financial services exempt from VAT except in a few cases. The definition of “financial services” in the VAT Act was however limited to dealing with “money”, a definition which arguably excluded Private Equity, Venture Capital and Mutual Fund companies. The 2020 Budget sought to extend the VAT exemption of financial services to the services provided by Private Equity, Venture Capital and Mutual Fund companies. This exemption was actualised by the passage into law of the Value Added Tax (Amendment) Act, 2019 (Act 1005), which amended the First Schedule to the VAT Act, which deals with Exempt Supplies. We believe this policy objective was to encourage financial investment and support for entrepreneurs/ start-ups through institutional and angel investors as part of the Government’s agenda to boost entrepreneurship and job creation.

Review and Strengthening of Current Legislation and Regulatory Framework for Taxation of E-Services and the Digital Economy - Not Implemented Revenue Authorities the world over are increasingly focusing on the taxation of the digital economy, a move

that aligns with global trends of addressing the issues of Base Erosion and Profit Shifting (“BEPS”), and reducing the revenue loss arising from non-taxation of crossborder business activities carried out through electronic and digital means. Since its passage in 2013, the current VAT Act has required non-resident providers of telecommunication and electronic commerce services for consumption in Ghana, to register and account for VAT if their services are not provided through a VAT registered agent. Due mainly to administrative hurdles, the implementation of this provision of law has not been as effective as expected. As there is an already existing provision in law that allows for taxing some aspect of the digital economy, the expectation was for the Government to introduce guidelines and amend the VAT Act or VAT Regulations if needed, to provide clarity on the procedures for meeting this objective. To ensure this policy comes to fruition, the expectation is that the GRA will have to increase its technological capacity and upskill its staff in order to effectively deal with tax evasion associated with e-commerce. However, as of the time of publication of this article, there is no publicly available information concerning the implementation of this proposal announced in the 2020 Budget.

Bringing it All Together From the above, you may notice that the Government has implemented the majority of the indirect tax policy measures proposed in the 2020 Budget. The next article in this series will focus on the indirect tax measures introduced because of COVID-19 and in the 2020 MidYear Fiscal Review. For the Government to be able to meet its revised tax revenue targets, it is essential that the Government puts in place measures to ensure that our indirect tax framework in Ghana is very robust to meet the uncertainties ahead.

Want to know more? Let’s talk. You can contact us by sending an email to abeku.gyan-quansah@pwc.com and michael.s.larbi@pwc.com At PwC, our purpose is to build trust in society and solve important problems. We’re a network of firms in 157 countries with over 276,000 people who are committed to delivering quality in assurance, advisory and tax services. Find out more and tell us what matters to you by visiting us at www.pwc.com. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details.

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The 2020 Financial Year of Ghana: Indirect Tax Reforms Arising out of the National Budgets and the COVID-19 Pandemic Part 2 This article is the second in a series of articles exploring the 2020 Mid-Year Fiscal Review, in light of the initial 2020 Budget Statement and Economic Policy of Ghana, and the COVID-19 pandemic we all honestly did not anticipate.

Abeku Gyan-Quansah

Michael Siaw Larbi

In Part 1 of this series, we highlighted the indirect tax proposals from the 2020 Budget Statement and Economic Policy, laying the foundation for the indirect tax policy measures introduced in the 2020 calendar year. As a quick recap, the 2020 Budget regarding indirect taxes had the Government initially expecting indirect tax revenues to be GH¢24.91 billion, as compared to an indirect tax revenue of GH¢ 20.62 billion in the 2020 Mid-Year Review, a reduction of approximately 17.2%. To achieve the initial revenue target, the tax policy measures that were introduced included the renewal of the Special Import Levy, the implementation of the taxation of e-commerce transactions and the removal of Value Added Tax (VAT) on certain services. In this article, we have highlighted the COVID-19 indirect tax policy measures as well as the indirect tax policy measures proposed by the 2020 Mid-Year Fiscal Review.

Indirect Tax Measures Arising from Government’s COVID-19 Tax Reliefs After COVID-19 hit our country when we least expected it, the Government stepped in with a number of tax measures meant to support the economy in these times, as well as relieve the tax burden on taxpayers, amongst others. From an indirect tax perspective, the specific tax measure was a waiver of VAT on donations of stock of equipment and goods for fighting the pandemic. This was mentioned in the Minister of Finance’s 30 March 2020 Statement to Parliament on the Economic Impact of the COVID-19 Pandemic on the Economy of Ghana. Roughly a month later, the Ministry of Finance submitted a Memorandum dated 29 April 2020 to Parliament. Among others, this Memorandum requested for qualifying donations made to support the fight against the COVID-19 pandemic to be designated as “emergency relief items approved by Parliament” in line with Paragraph 6 of the Third Schedule to the VAT Act, 2013 (Act 870). Following Parliament’s approval of the above request, the Ghana Revenue Authority (“GRA”) in a notice in the Daily Graphic on 12 May 2020 published guidelines for the effective implementation of the various tax incentives. The guidelines included a list of beneficiaries to whom donations made would qualify for the reliefVAT treatment. In the above-mentioned Daily Graphic publication, the requirement for relief-VAT treatment on donations was that the donation had to be made through recognised institutions and bodies, including the COVID-19 Trust Fund, the Private Sector COVID-19

Fund, Metropolitan, Municipal and District Assemblies, Ministries, Departments and Agencies, Health Institutions, Traditional Councils and Religious Bodies/ Institutions.

The 2020 Mid-Year Fiscal Review - Indirect Tax Proposals Amid the COVID-19 pandemic and a global economy that had surely felt the impact of the pandemic, the Minister of Finance in keeping with the provisions of the Public Financial Management Act, 2016 (Act 921) presented the Mid-Year Fiscal Review of the 2020 Budget on 23 July 2020. This Budget Review focused on social intervention policies aimed at helping the economy recover from the impact of the pandemic. As such, the expectation was that there would not be any new taxes introduced, and true to expectation, no new taxes were introduced. On indirect tax, the 2020 Mid-Year Fiscal Review focused on the reduction in the rate of the Communications Service Tax and the enforcement of VAT on commercial properties. These are further explained below:

Reduction in Communications Service Tax (CST) rate from 9% to 5% The 2020 Mid-Year Fiscal review proposed a reduction in the CST rate from 9% to 5% effective September 2020. When the tax was introduced over a decade ago, the Communications Service Tax Act, 2008 (Act 754), imposed a rate of 6% for CST. Until 2019, the rate remained at 6%, and then following the 2019 MidYear Fiscal Review, it was increased to 9%. This increase in rate was effected through the passage of the Communications Service Tax (Amendment) Act, 2019 (Act 998). As expected, this increase in rate was met with a lot of initial stakeholder resistance and uncertainties in implementation. Roughly a year later, amid the COVID-19 pandemic, this reduction in the CST rate from 9% to 5% should be a welcome change to providers of electronic communication services and the people of Ghana, who ultimately bear the burden of the tax.

Enforcement of VAT on Commercial Properties Also proposed in the 2020 Mid-Year Fiscal Review was a policy to enforce VAT on commercial properties, as a measure to shore up tax revenue. It is a requirement in the VAT Act, 2013 (Act 870), that a person who is registered for VAT or who is required to register for VAT should charge and account for VAT on non-exempt supplies of goods and services made in Ghana. Consequently, owners and managers of commercial properties who are registered for VAT or who are registrable for VAT are expected to charge VAT at the standard rate on rental charges for commercial properties, since this is not an exempt service under the First Schedule of the VAT Act. Considering this is an already existing provision in Act 870, the expectation is that there will not be an amendment to Act 870, but rather an increased focus by the GRA on owners and managers of commercial properties and their invoicing practices to ensure that VAT is indicated on invoices issued for rental charges. Also, it is expected that these owners and managers of commercial properties will properly account for the associated VAT in order to realise the tax revenue anticipated from this policy. To be successful in this exercise, GRA is likely to undertake tax audits of owners and managers of commercial properties and intensify stakeholder education in the commercial real estate sector.

Bringing it All Together From the above, we have assessed the indirect tax policy measures introduced by the Government in the 2020 calendar year. These policies have arisen from the 2020 Budget, the COVID-19 tax measures and the 2020 Mid-Year Fiscal Review. For the Government to be able to meet its revised tax revenue targets, it is essential that the Government puts in place measures to ensure that our indirect tax framework in Ghana is very robust to meet the uncertainties ahead. In the subsequent series, we will explore the Direct Tax and Tax Administration measures from the 2020 National Budget, the COVID-19 tax reliefs and the 2020 Mid-Year Fiscal Review.

The expected 2020 CST revenue is projected at GH¢ 535.80 million, higher than the initial target of GH¢ 436.54 million and the 2019 provisional outturn of GH¢ 412.34 million.

Want to know more? Let’s talk.

We do not expect a reversal of the rate soon because the reduced rate is aimed at supporting digitalisation, a major policy intervention in the Ghana COVID Alleviation and Revitalisation of Enterprises Support (CARES) Programme meant to catalyse economic activities and promote growth.

At PwC, our purpose is to build trust in society and solve important problems. We’re a network of firms in 157 countries with over 276,000 people who are committed to delivering quality in assurance, advisory and tax services. Find out more and tell us what matters to you by visiting us at www.pwc.com.

You can contact us by sending an email to abeku.gyan-quansah@pwc.com and michael.s.larbi@pwc.com

PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details.

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Carmakers compete to keep you entertained

havin Bhagalia from London has just bought his first electric car. “I didn’t just want something that could get me from A to B, I wanted the entire travelling experience to be better,” he says. With that in mind he bought a Tesla Model 3. As well as its performance, Mr Bhagalia was attracted by its in-car entertainment. “You can play music straight from your Spotify account and when we have been charging the car on our journeys we have been watching Netflix and YouTube through the apps which come with the vehicle,” he says. All these apps are available on the main screen in the Tesla. However, it is only possible to use the music app Spotify while the car is moving. Others, like YouTube, Netflix, Hulu and games won’t work unless the car is parked. Ultimately, when cars become autonomous, drivers may be able to use these apps while the car is moving, but that is a long way off. Apps for cars have existed for many years, but now customers like Mr Bhagalia have high expectations about what carmakers can provide. “The big car manufacturers are playing catch-up with software. They’ve all been caught napping to some extent as it was clear what had been going on in the mobile phone space and the level of expectation from users in-car,” says Jamie Broome, head of automotive business at Imagination Technologies, a company that provides the technology building blocks in millions of cars. “It is going to take a pretty big leap and no-one has done that yet. Who is going to come along and bring it together in a way that we saw Apple do with the mobile phone?” The big carmakers are playing catch-up, according to Jamie Broome Developing apps for cars is not cheap, nor is it easy because of the stringent safety and security measures that have to be put in place in cars. As a result, software developers need a big incentive to develop an app for a car - and the biggest incentive is a large user base. It’s for this reason that the Volkswagen Group and Google have a big advantage in the market at the moment. Volkswagen sells 10 million cars a year that use the company’s own software platform and

Bhagalia and his new Tesla Model 3

operating system. It has invested heavily in its Car. Software Organization, which has brought together all of the group’s software staff, including those from its Audi and Porsche brands, into one team. Meanwhile, Google works with over 50 car brands, with Android Auto on track to be in more than 100 million cars in the coming months. With around 2.5 billion people already using Google’s Android software on smartphones and other devices, consumers are already familiar with the way Android looks and works. “We’ve taken the learnings and processes from mobile and applied them to how we approach Google Play on other devices,” says Mickey Kataria, director of project management, Android for Cars. Car manufacturers have been drawn to Google as a way to catch up with the likes of Tesla. “A big dilemma that the automotive industry has been facing for some years is a big pressure to tackle the disruption in the mobility sector, and more carmakers are coming to the conclusion that the best way is

to partner with a technology company, because you can achieve the results faster with less investment,” says Pedro Pacheco, senior research director at analysis firm Gartner. However, Mr Broome suggests that cars that use their own operating system, rather than a technology company’s, will enable a better user experience. “You can only see true alignment when you have both and that’s why Tesla is the one to watch. For instance, it is a lot harder for Google to make hardware features generically because of the variety of Android devices, whereas you get a more aligned experience on Apple devices,” he says. Björn Goerke, chief technology officer at Volkswagen Group’s Car.Software Organization, echoes this sentiment. “The more the apps know about the specific context in which they are operating, the better the experience will be for the user,” he says, referring to the car sensors and various other parts of the car which may not be accessible to Google. While carmakers are happy to co-operate with software firms,

Volkswagen is building its own software system

they will only go so far. They might be comfortable with voice control of the music system, temperature control and even the garage door. But handing over control of the driving systems and specific data and knowledge about how the car works might well be too much. Mr Goerke from Volkswagen also says there is an important issue surrounding car owners’ data privacy. “This is something Volkswagen will continue to own. Customers need to remain in charge of the data we’re collecting and it needs to be clear what is happening with their data, and that it is not going to be given away through that particular kind of channel which sits in the car,” he says. Other car manufacturers like Mercedes are also building their own operating systems. Many are keen to see how Apple develops its relationship with the car industry. In 2016, it scaled back “Project Titan”, a secretive effort to build what was dubbed the Apple Car, but it kept on a number of employees who had been working on the project. Mr Broome says he wouldn’t be surprised if Apple is working with several carmakers behind closed doors. Eventually, Mr Pacheco believes there will be just a few operating systems on the market left to fight it out. As for Mr Bhagalia, he believes his new Tesla could eventually have apps from Amazon or Tesco on board, allowing a passenger to do some shopping, as well as apps for multiplayer online gaming. “Tesla already has a number of games but hopefully in the future, drivers can play against each other while they’re charging their cars,” says Mr Bhagalia. BBC

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