Business24 Newspaper - 21st September 2020 by Business24 Online

THEBUSINESS24ONLINE.COM

MONDAY - TUESDAY SEPTEMBER 21 - 22, 2020

NO. B24 / 103 | NEWS FOR BUSINESS LEADERS

MONDAY - TUESDAY SEPTEMBER 21 - 22, 2020

Goldman Sachs predicts stronger economic growth for Ghana

Kofi Adda, Aviation Minister

All set for home-based carrier decision— Kofi Adda By Dominick Andoh kofi.pra@gmail.com

overnment is all set to choose from a shortlist of nine potential partners for the establishment of a homebased carrier, according to Aviation Minister Joseph Kofi Adda. Cont’d on page 3

No Payment, No entry’ comes into effect today at KIA

The re-opening of the Kotoka International Airport has fuelled expectations of stronger economic growth in 2020 than earlier projected due to the Covid-19 outbreak.

By Nii Annerquaye Abbey annerquaye@gmail.com

he Economics Research wing of Goldman Sachs, a global financial institution, is forecasting Ghana’s economy will perform better than government’s 0.9 percent GDP growth projection for this year. The firm’s latest projection

follows the Ghana Statistical Service’s latest GDP data that revealed the economy contracted in the second quarter of 2020 – the first time in about four years. But despite the 3.2 percent contraction in GDP growth, Goldman Sachs said it sees Ghana’s pandemic-hit economy growing at a rate of 1.2 percent, following a stronger

ECONOMIC INDICATORS *EXCHANGE RATE (INT. RATE)

Cont’d on page 3

INTERNATIONAL MARKET USD$1 =GHC 5.6734*

BRENT CRUDE $/BARREL

14.5%*

NATURAL GAS $/MILLION BTUS

GHANA REFERENCE RATE

15.12%

GOLD $/TROY OUNCE

OVERALL FISCAL DEFICIT

11.4% OF GDP

AVERAGE PETROL & DIESEL PRICE:

he “No Payment, No entry” policy for inbound airline passengers, which was deferred last week at the instance of international airlines operating in the country, comes into effect today, September 21.

Cont’d on page 2

*POLICY RATE

PROJECTED GDP GROWTH RATE

By Dominick Andoh kofi.pra@gmail.com

than anticipated performance from some key sectors of the economy. Goldman Sachs’ latest projection is a revision to its initial forecast that said the Ghanaian economy would see a 1.3 percent contraction on the back of the damaging impact of the Covid-19 pandemic.

0.9% GHC 5.13*

CORN $/BUSHEL

329.50

COCOA $/METRIC TON

$2,620

COFFEE $/POUND:

$109.65

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

NEWS/EDITORIAL Editorial / News

MONDAY SEPTEMBER 142020 2020 MONDAY - TUESDAY SEPTEMBER 21 - 22,

EDITORIAL Editorial

Wash your hands 2

Cover your cough 3

Pay before boarding order needs a rethink

Pay before boarding policy starts today The new directive for all condition for boarding of flights country� s COVID-19 testing

passengers to pay for he directive for their all COVID-19 test online before their passengers to pay for arrival at Kotoka International theirhas COVID-19 test online Airport been meet with before their arrival at Kotoka resentment by airlines and International passengers. Airport comes into effect At atoday. time when passengers are The directive, which with was the to still coming to terms come into� GHC force on September 15, US$150 900� mandatory was deferred a week to ensure payment for for COVID-19 test upon arrival at KIA, the new directive adequate communication and has generated more debate. adequate testing of the online payment platform. Passengers travelling to Ghana Byfromthe new September directive, will Tuesday, 15 be required to make online passengers are required to show payments for the mandatory proof of payment to airlines as a C O V I D 1 9 t e s t a t toka condition for boarding ofK oflights International Airport prior to to KIA.” boarding of their flight, a d The i r e c t new i v e bdirective, y F r o n t has ier however, been H e a l t h C a r e � t hdescribed e c o m p a by ny airlines as detrimental to the contracted to carry out the renewed efforts to all stimulate antigen test at KIA--to airlines on Friday for has revealed. demand air travel, given thatB ycash t hpayments e n e w remains d i r e c t i the ve, predominant mode of “Passengers are requiredpayment to show for most travelers. proof of Ghanaian payment to airlines as a

to Though KIA.” airlines have lauded T h e COVID-19 n e w d i re c t iveregime, , has Ghana’s testing however, been described by the cost and insistence on using airlines as detrimental to the solely online payment platform renewed effortsinto to question. stimulate have been called demand for air travel, given that Theypayments argue thatremains hundredsthe of cash Ghanaian traders who travel to predominant mode of payment buy goods to retail travelers. in the country for most Ghanaian do not use electronic payment An airline operator who cards. wishes to remain anonymous, “Most of themthat don’t carry any told Business24 “The cost is electronic cards be already toopayment high and nowtothis able pay online. new to policy is also They going should to be ihave m p l the e m eflexibility n t e d . Tto h epay r e cash are hundreds of Ghanaian traders when they arrive,” an operator who travel to buy goods to retail said. in The the country. Consumer Protection “Most of themhas don�also t carry any Agency (CPA) raised electronicquestions payment cards be critical about to the able to pay online. They should relatively high cost of the have the flexibility to pay cash country’s COVID-19 testing when they arrive.” regime. The CPA’s Consumer The Chief Protection Executive Agency � CPA� has also raised Officer, Kofi Kapito, said in as critical questions about the much as the government relatively high cost of want the

regime. to curb imported cases of the The CPA� disease, s Chief itExecutive respiratory must not Officer, Kofi Kapito, said in as burden the passenger but charge much as the government want to what is enough to cover their curb imported cases of the cost and not to profit from the respiratory disease, it must not passenger. burden the passenger but charge “Look around to Africa andtheir you what is enough cover see that paid from in Ghana cost and what not toisprofit the for the test is the highest. Why passenger. should be?” Africa and you “Lookthat around also raised questions about seeHe that what is paid in Ghana for why test theis Noguchi Memorial the the highest. Why Institute should thatfor be� ”Medical Research ofHe thealso University of Ghana, was raised questions about not made to handle the testing why the Noguchi Memorial for a reasonable feeResearch but rather Institute for Medical of the Universitygiven of Ghana, not a contract to a was foreign made to handle testing for a company to dothe what Noguchi reasonable fee handle. but rather a could adequately contract given to like a foreign Business24 would to urge company to do what Noguchi a flexible approach that allows could adequately handle. passengers to either pay online would like to urge orBusiness24 cash on arrival. a flexible approach that allows passengers to either pay online or cash on arrival.

COVID-19: BankSachs s deferredpredicts GH¢3bn in loastronger n repayments Goldman economic growth for Ghana CONTINUED FROM COVER

Wear a mask Brought to you by

Visit thebusiess24online.com/ contacts to see a full list of Biz24 leaders and newsroom contacts. Your newspaper subscription - along with the support of businesses who advertise in theBUSINESS24 and on theBUSINESS24online.com - make an investment in the Journalism that is essential to keep business community in Ghana well-informed. We value your support and loyalty, and we are committed to serving you Conatct us

Email: hello@thebusiness24online.net Newsroom: 030 296 5315 news@thebusiness24online.net Advertising Sales: +233 030 296 5297

that the desired outcomes are outbreak had transformed their team structures to the new way of achieved and the economy operations, the bank chiefs working in order to maximise brought back on track.” responded that the immediate efficiencies of digital banking, response (+17.9%) was to and enforce remote economy and ensure Mr. Awuah� remarks were education healthcare to less-paper avoid a operations recession Continued from scover workingmade whilesubstantial realigning positive workers� when and the requirements for social reinforced by majority of the top (+21.3%) third quarter numbers “Contrary to our expectations, roles. distancing. In the long run, these bank executives who responded Incorporating are published, because we expect the construction (+3.6%yoy) and contributions. measures may result in possible While the majority, 69 percent, to the survey. The respondents data into our GDP a marginally positive growth rate transport (+0.8%yoy) industries today’s of respondents indicated that layoffs for some whose jobs advised the Bank of Ghana to forecasts lifts our 2020 GDP for the third quarter of 2020,” he recorded positive growth, remote working will become a become automated,” the report increase stakeholder consultation growth number to +1.2%, from said. contributing significantly to permanent option going forward, said. in order to propose more previously,” the firm said. Mr. Martey argued that limiting the impact of the decline -1.3% Commenting on the findings of there was general consensus that beneficial policies. government’s projection of in other industries. the new norm will ultimately lead the survey, which was on the Hope amidst the storm achieving 0.9 percent GDP This, they said, will help “Additionally, stable to the shedding of workers whose theme “The new normal� banks� growth in 2020 appears more estimate the timelines and extent jobs have become automated. agricultural sector growth (+2.5%) response to COVID-19”, PwC� s The hospitality sub-sector, feasible now considering that to which the policies of the and strong growth in ICT (+74%), “ M o s t b a n k s i n t e n d t o Country Senior Partner, Vish widely anticipated, saw the the economy showed signs of a regulator will remain available. as permanently incorporate remote Ashiagbor, cautioned that for in the secondto rebound thesurvive latter part the S o m e r e s p o n d e n t s s i m p l y biggest workers in that the ofdigital working slump as an option available But I feel GDPon data released theof second thought that there was the need quarter p ro g requarter. s s i o n , t hey h ave to staff based their roles. by 12.5� for detailed guidelines from the statistical service – recording an “If we consider the to GSSremain data strongly that their skills banks confirmed that they have upgrade government and Bank of Ghana almost 80 percent fall. This was that proved the economy had already begun and will continue relevant. have the on the we implement ation of followed thejobtrade, of started showing signs of restarting to realignbythe roles repair and work measures put in place to curb the vehicles, and household goods from late Q2-2020, then there’s a potential to impact of the pandemic. sub-sector, which saw a negative reason to be hopeful for the 2H2020. recover growth In their view, clear to guidance 20.2 percent growth. Despite the second-quarter For growth to fall short of the missing, or and though this 1cwas percent more. contraction, Courage Martey, an 0.9 percent projection for endould be shared during economist with Databank Group, 2020, we would have to grow by stakeholder consultation, they Public expenditure could not fully embed the new explained that government’s less than 1 percent on average in in the lead up to the policies in operational strategy decision to ease restrictions the second half of 2020. “But I feel strongly that we without a detailed documented earlier, compared to most African December 2020 countries, may have prevented have the potential to recover directive. elections should further damage. growth to 1 percent or more. ADVERTISE WITH US “This enabled a quicker Public expenditure in the lead up Post-pandemic banking +233 024 212 2742 also provide another restart of the economyTEL:and to the December 2020 elections relatively should also provide another extraordinary lift to firm partly explains Ghana’swww.thebusiness24online.net When asked by the audit modest contraction, compared extraordinary lift to aggregate about how the pandemic� s aggregate demand” to its peers. This also set up the demand,” he noted.

“

MONDAY - TUESDAY SEPTEMBER 21 - 22, 2020

All set for home-based carrier decision—Kofi Adda Continued from cover The strategic partner shortlist, to be deliberated on this week by the Economic Management Team (EMT) and Cabinet, presents government with two main options: to either partner Ethiopian Airlines or Africa World Airlines (AWA) or select one of the other seven strong shortlisted investors. “With the seven other shortlisted investors, they have shown proof of funds, presented their forms of potential agreements, and we are taking it to government to see who is best suited,” Mr. Adda told Business24 on Saturday. The seven potential partners are institutional investors mainly from Middle East, Europe, North America, and South America who have partnered local investors to collectively make a claim to be considered for the home-based carrier project. Despite the impact of the COVID-19 pandemic on the aviation sector, the government plans to facilitate the setting up of a new home-based carrier. It has emphasised that it will only hold a 10 percent interest in the new entity and invite private

participation. In an initial Memorandum of Understanding signed with Ethiopian Airlines (ET) last year to be the strategic partner, government said ET can hold up to a 49 percent stake. Of the majority 51 percent stake, 10 percent is to be owned by the state and 41 percent offered to individuals and institutional investors. However, the choice of Ethiopian Airlines as the strategic partner was held back due to a lack of agreement over key issues

such as routes and tenure of the management contract. That said, “Ethiopia still remains one of the key options along with the others,” Mr. Adda confirmed. Why investor interest in the midst of a crisis The COVID-19 pandemic has led to a sharp decline in the prices of airline stocks across the world. Major airlines saw their stocks plummet, and preCOVID-19 strong carriers such as Air Mauritius in Africa, Delta

and United in America, and Air France/KLM and Lufthansa in Europe needed one form of support or the other to ride out the storm. Despite this grim outlook, the Africa region remains one of the areas with huge potential for aviation, given the current poor air connectivity in the region. Ghana’s desire to establish a new flag carrier is born out of the desire to leverage the facilitating role of aviation for one of the fastest-growing economies in the world pre-COVID-19. The country seeks to become the aviation hub of the sub-region, and this is seen as a key part of that project. With an estimated population of 350 million, most of whom are under 30 years, the sub-region is fertile for aviation growth post-COVID-19. Aviation is an enabler and the aviation economy employs millions of people and generates billions in revenue. For a nation seeking to create jobs for hundreds of unemployed tertiary-educated graduates, building a strong aviation sector is imperative. National pride and recapturing the old routes plied by the defunct Ghana Airways are also some of the key motivations.

No Payment, No entry’ comes into effect today at KIA Continued from cover By this new policy, incoming airline passengers must pay online for the mandatory COVID-19 test upon arrival at Kotoka International Airport prior to boarding their flights, according to a directive by Frontier HealthCare, the COVID-19 test provider, and the Ghana Airports Company. Before boarding their flights to Accra, passengers would have to show proof of payment for the test to airlines. The payment portal, myfrontierhealthcare.com, is now functional and accepts Visa and MasterCard payments only. Some airlines have however complained about the limited payment options, arguing that many Ghanaian travellers do not carry electronic payment cards. “Most of them don’t carry any electronic payment cards to be able to pay online. They should have the flexibility to pay cash

when they arrive,” an airline operator told Business24. Ghana reopened its airport for international flights on September 1, following the lifting of coronavirus restrictions which had been in place since March, when the country detected its first positive cases. The government and airport authorities instituted a compulsory testing regime upon arrival for all international passengers, at a cost of US$150 per test or a flat rate of GH¢900. The reopening of the airport, as part of a broader relaxation of coronavirus restrictions, has led to predictions that Ghana’s 2020 economic growth will fare better than earlier projected when the virus struck the nation. In July, the government forecast an annual economic growth rate of 0.9 percent, which analysts now think could be bettered despite the economic contraction experienced in the second quarter of the year.

GDP for the second quarter shrank by 3.2 percent, reflecting the impact of coronavirus restrictions, after posting an expansion of 4.9 percent in the first quarter.

The travel and tourism industry remains one of the most damaged sectors by the pandemic, with many businesses still shut and unprecedented job losses recorded.

MONDAY - TUESDAY SEPTEMBER 21 - 22, 2020

News

MONDAY - TUESDAY SEPTEMBER 21 - 22, 2020

First National Bank Ghana walks with Private Hammond to fight COVID-19

he CEO and some staff of First National Bank joined Private Joseph Hammond in a short walk along the Osu Oxford Street in Accra last week. This is one of many in the series led by the veteran soldier to raise funds for frontline health workers in the fight against COVID-19 in Ghana. As with many individuals and groups who have joined the World War II veteran soldier, the bank committed to a donation to help fund the purchase of Personal Protective Equipment for frontline workers who are supporting COVID-19 relief efforts and war veterans in a number of African countries. Dominic Adu, CEO of First National Bank Ghana commended Private Hammond for embarking on this unique initiative to help in the global fight against the

The CEO and some staff of First National Bank joined Private Joseph Hammond in a short walk along the Osu Oxford Street in Accra last week

pandemic. “I’m particularly happy to walk with you today and share your marvellous story and

I’m hoping that one day we can look back and tell the success story of First National Bank in Ghana”

Dominic said. He mentioned that ASPIRE (Accelerated Support for Pandemic Intervention and Relief Effort) is the Ghanaian version of FirstRand Group’s SPIRE (South African Pandemic Intervention and Relief Effort- SPIRE) in South Africa, which set out to assist the government and its stakeholders in mitigating the impact of the pandemic. With this special initiative a rapid response fund set up by First National Bank Ghana is helping government and its stakeholders scale up the fight against COVID-19 with critical testing and tracing capabilities while supporting local entrepreneurs to develop innovative interventions to protect front-line health workers. “We believe in giving back to society and to face this virus head on, we ought to begin from home”.

TUC calls for proper implementation of three-tier pension scheme

r. Yaw Baah, Secretary General, Trades Union Congress (TUC) Ghana, has reiterated the union’s calls on government to rectify the “unfairness and discrimination” in the implementation of the three-tier pension scheme and adjust upwards, the low lumpsum benefits of pensioners. The TUC said pensioners were being shortchanged in terms of the lump-sum benefits they received, adding that the situation, including the miscomputation of Past Credit by the Social Security and National Insurance Trust (SSNIT), was worrying and would not be allowed to continue. He indicated that workers who retired from January 2020 were worse-off as they were receiving lump sums benefits way lower than what they would have received from SSNIT had they retired under PNDC Law 247 – which required SSNIT to pay 25 per cent lump sum to contributors. Dr Yaw Baah who was speaking at a regional forum on pensions in Tema, called on government to engage stakeholders to address the anomaly and make the pensions scheme more sustainable. The forum, organised by the TUC in partnership with the Friedrich Ebert Stiftung, sought

Dr. Yaw Baah, Secretary General, Trades Union Congress (TUC) Ghana

to, among other objectives, sensitize members on pension reforms in Ghana, overview and implementation of Act 766, which introduced the three-tier pension scheme. He said there had been a series of attempts, albeit unsuccessful, to get government to convene a stakeholders meeting to address the concerns and related issues of pensioners. Dr Baah added that there was some apparent discrimination in the payment of pensions

which ought to be adequately addressed, explaining that the reforms that led to the current pension scheme was not being implemented appropriately to address the concerns of workers and pensioners. He, therefore, called on government to as a matter of urgency convene a stakeholder’s dialogue to further discuss ways of addressing the “unfair, unjust and discriminatory” treatment being meted out to pensioners and ultimately strengthen the

pension scheme. Mr Reynolds Ofosu Tenkorange, General Secretary, Health Services Workers’ Union of the TUC, advised Ghanaian workers to prepare adequately towards pension and reap the benefits thereof. He reiterated the need for government to organize a stakeholder forum to address the challenges workers were confronted with, particularly to ensure that pensioners got what was suitably due them.GNA

MONDAY - TUESDAY SEPTEMBER 21 - 22, 2020

News

MONDAY - TUESDAY SEPTEMBER 21 - 22, 2020

NIC moves to enforce marine insurance protocol By Patrick PAINTSIL

he National Insurance Commission (NIC), in collaboration with the Customs Division of the Ghana Revenue Authority (GRA), is in the process of establishing a marine and aviation insurance database to track all marine insurable activities, including cargo imports. The database will enable Customs to authenticate details of marine insurance policies submitted by importers electronically, in line with the country’s marine insurance protocol. Ghana’s marine insurance protocol requires all cargo coming into the country to be insured locally. In addition, insurable risks of marine sector operators and entities are required to be insured with insurance firms licensed in Ghana in accordance with the Insurance Act. Despite these requirements, a market survey by the Ghana Shippers Authority (GSA) in 2018 found out that only 6 percent of imports into Ghana were insured

The country’s insurance sector regulator is banking on the huge potential of insurable cargo coming into the country to boost insurance penetration.

locally. A similar research conducted by the NIC in 2019 also showed that about 75 percent of importers had little or no knowledge about what marine cargo cover they had purchased, or even how to make claims on cargo insured with offshore insurers.

The report also established that marine cargo insurance could significantly boost the relatively low insurance penetration rate of Ghana, looking at the volume of imports into the country. With the steps being taken to enforce the protocol, the insurance sector regulator is

French businesses to deepen investments in growth sectors By Patrick PAINTSIL

he Chamber of Commerce and Industry France Ghana (CCIFG) says its members remain committed to the country’s development agenda and will promote sustained investments in key sectors of the economy to fast-track recovery from the shocks of the coronavirus pandemic. “There are over 70 registered French companies operating across various sectors of the Ghanaian economy, and this tells us that France is very much involved in the local market. “For 2020/2021, the growth sectors that we [French businesses] are looking to deepen investments in include agriculture and agro-processing, health, technology, manufacturing and infrastructure,” Anne-Rita Solano, Managing Director of the chamber, told Business24 in an interview at its first networking session this year. According to her, these are

areas that French businesses have the expertise and know-how in and they are ready to support Ghana’s development agenda. Although the coronavirus pandemic has slowed down business activities between the two nations this year, she said the chamber will be active on both sides to bolster trade relations from next year. About 170 corporate and individual members of the chamber convened at the CFAO showroom in Accra to socialise, build business connections, and forge partnerships that will bolster business activities between Ghana and France. Ms. Solano shared the idea behind the event: “CCIFG wants a business community revolving around four core strategies: animate, inform, connect and support its 160 company members and a total network of 3,500 individual members within 20 business segments.” CCIF Ghana is a member of the CCI France International

Network, comprising over 126 French chambers across 95 countries and employing over 1,200 people as well as hosting over 37,000 corporate members.

banking on the huge potential of insurable cargo coming into the country to boost insurance penetration. Seth Eshun, Head of Supervision at the NIC, told journalists at a maritime seminar in Accra that the new measure will bind importers to insure their consignment with local insurance firms as a way of improving the relatively low insurance penetration rate. “As part of the collaboration, GSA will encourage shippers to comply with the Insurance Act 2006 (Act 724) to enjoy the benefits of placing cargo insurance locally,” he indicated. To make it binding on shippers, marine insurance certificates issued by an insurer licensed in Ghana would be part of the clearance documents required by Customs for all cargoes, he added. According to Mr. Eshun, the non-compliance with the marine insurance protocol is having dire implications on both the local shipping and insurance industries. To him, importers who insure with local insurers stand to benefit from a quicker claims-handling process in cases of loss or damage, a reduction in foreign exchange flight in the form of overseas insurance premiums, and direct and better access to insurers for importers. Ghana currently hosts 70 French companies operating in key sectors of the economy, including oil and gas, agribusiness, cocoa processing, engineering, energy, transport, logistics and pharmaceuticals. Ghana is also ranked as the fifth main destination for French foreign direct investments in subSaharan Africa.

MONDAY - TUESDAY SEPTEMBER 21 - 22, 2020

www.surflinegh.com

WEAR YOUR FACEMASK ALWAYS surfline ...itâ&#x20AC;&#x2122;s about time

remote working by staff. We expect that details of how this progress is 9 achieved will evolve with time, as

shedding of jobs and act now to create alternative jobs for those that may be affected.

MONDAY - TUESDAY SEPTEMBER 21 - 22, 2020

It is time to improve the presence of women on boards

predict lay-offs over pandemic

ff al w

of me se or d he o n

re at re he at ce he

d or C ot n

By Marcia Ashong

hana has produced some of Africa’s most admired women. From Akua Kuenyehia, a former Vice President of the International Criminal Court, to Netflix Chief Marketing Officer Bozoma Saint John, Ghanaian women have a significant presence on the global stage. Yet for all the shining stars and international accolades, the Ghanaian public and private sectors have largely fallen short when it comes to championing women in leadership at home. The glass ceiling remains stubbornly in place for female leaders. The participation of women in key leadership roles is critical for Ghana to unlock its full social and economic potential. In government, Ghanaian women are extremely underrepresented in all branches. Women make up a paltry 14% of parliamentarians and only a quarter of ministers. Among mayors, the situation is no different: only 14% are women, and the numbers of women on the Council of State and governing boards of public corporations are few and far between. If you look to the private sector, the situation is no different. A new report released by TheBoardroom Africa in partnership with the Ghana Stock Exchange shows that amongst 37 listed companies in Ghana, women are rarely included in the actual governing of some of Ghana’s most notable companies. According to the 2020 Board

that observers would see a bank in the immediate years that follow recovery from the pandemic and wonder, ‘is that really a bank?’ Still, from the responses given by bank executives, there are indications of remarkable progress along the digital journey. For now, it seems that focus is on service delivery channels and backoffice systems with an Diversity Index, women hold only emphasis on creating – especially 23% of board seats and 24% of nonexecutive director seats. Although for the latter – an environment this figure representsthat a 3% increase in women’s board seats supports remote working by staff. and a 4% increase in non-executive director seats held by women We expect that details ofthehow from 2019, Board this Diversity Index shows that women are still progress is achieved will evolvein significantly under-represented the leadership and management with time, as different of majorbanks corporationsselect in Ghana. Companies that rank poorly different tracks in intheir pursuit terms of gender equality to often

become ‘a digital bank’,” he added. The Deputy Chief Executive of the Ghana Association of Bankers, John Awuah, in remarks captured in the report, commended banks for leveraging technology to meet the diverse needs of customers during the peak of the pandemic. “The initial investments made by banks in technology have enabled the industry to support customers qualified women available for board leadershipthese or management during uncertain times. The roles. But this claim is hardly true. There are qualified women ‘new normal’ will benefits of the everywhere, and, thanks to rising female participation in higher to change the way surely continue education, their numbers are growing although many disappear banking business is done going from the ranks as they climb the career ladder. forward,” he added.

Marcia Ashong is Founder and CEO of TheBoardroom Africa, the region’s largest network for female board executives.

claim that there are very few

benefits associated with gender diversity on boards and in senior leadership. Genderdiverse boards positively impact governance, and the presence of women on boards reduces the risk of fraud and corruption, and increases customer and employee satisfaction. Moreover, studies also point to the positive influence of gender-diverse management and boards on a company’s sustainability profile. To leverage the diversity dividend, companies can adopt a number of proven strategies to improve women’s representation at the highest leadership levels. First, they can address the pipeline problem by investing in early- and mid-stage professionals and providing support for highachieving female professionals. Second, they can establish familyfriendly workplace policies from childcare and parental leave to improve retention. Finally, they can engage and educate male business leaders on how diversity improves business performance and encourage them to step up and step into the role of mentors and sponsors. Adopting these forward-looking approaches would ensure greater involvement of women in shaping corporate strategy. If Ghana hopes to realise its ambitions as a beacon for the business community, she must adopt forward-looking strategies to develop female leaders and involve more women in the governing process across the board.

It is time for Ghanaian companies to adopt strategies to improve women’s presence on boards because a growing body of research shows significant

ADVERTISE WITH US TEL: +233 024 212 2742

MONDAY - TUESDAY SEPTEMBER 21 - 22, 2020

Feature

MONDAY - TUESDAY SEPTEMBER 21 - 22, 2020

Africa Needs Market-Creating Innovation By Carl Manlan and Efosa Ojomo

radicating poverty and boosting prosperity in Africa starts in the boardroom. And it requires African business leaders to use their positions to foster more inclusive economic growth that benefits all stakeholders – customers, employees, suppliers, and communities – rather than focusing on shortterm profits that fail to lift up vulnerable communities. But expanding the economic pie will require the continent’s business leaders to take a fundamentally different approach to innovation and growth. To generate shared prosperity, African corporate boards must focus on building new markets in Africa, for Africans. That means prioritizing market-creating innovations. As many observers have pointed out, the Nobel laureate economist Milton Friedman’s famous dictum that a firm’s only social purpose is to maximize shareholder value is no longer tenable, given soaring levels of inequality. In Sub-Saharan Africa, for example, more than 230 million people suffer from chronic undernutrition. But market-creating innovations can begin to improve the precarious situation of these and other vulnerable groups. Such innovations transform complicated and expensive products into simple and affordable ones, making them accessible to many more so-called “nonconsumers” who previously could not afford existing products on the market. If more African businesses develop strategies to serve the continent’s hundreds of millions of nonconsumers, the vision of shared prosperity can be realized. Creating new markets may seem daunting, if not impossible, because it often requires significant investments to attract customers deemed too poor to consume. But this is precisely how Africa can start to become more prosperous. A little over 20 years ago, for example, Mo Ibrahim founded the African mobile

telecommunications operator Celtel with the aim of making inexpensive mobile phones and communications technology available to the average African. Although many experts predicted that the venture would fail because Africa was too poor and corrupt, Celtel thrived. Today, thanks to the power of Ibrahim’s market-creating innovation, Africa has nearly one billion mobile-phone subscriptions. The continent’s telecommunications sector currently supports about four million jobs, and each year generates billions of dollars in much-needed tax revenues. African company boards must now address the many challenges faced by the continent’s nonconsumers. For example, how might most Africans gain access to better health care? Most governments have underfunded health budgets, while nongovernmental organizations typically lack the sustainable business models needed to scale up accessibility initiatives. But new markets can solve this problem. For example, the Ghanaian health-care company mPharma is expanding rapidly across the continent by offering affordable quality medications. The firm has served over one million Africans, created hundreds of jobs, and raised more than $50 million of venturecapital funding to expand its operations. mPharma is following the market-creation playbook, and winning. At their core, marketcreating innovations focus on the needs of the majority. When Singapore’s Tolaram Group sought to create a new market for instant noodles

in Nigeria in the late 1980s, its board wisely leveraged existing informal distribution and retail networks in the country and built up local expertise in order to make a product the average consumer could afford. By subsequently manufacturing the noodles in Nigeria, the firm ensured that local skills and context would enable it to meet customers’ demands. Such decisions highlight the role boards can play in creating new growth engines for their organizations and society. Such engines are urgently needed. The COVID-19 pandemic threatens to worsen the widening inequality that has accompanied Africa’s economic growth over the last 25 years. The coronavirus has disrupted the livelihoods of the 85% of Africa’s informal workers, who lack access to social services and are being plunged deeper into poverty. These people are most likely to be nonconsumers of many products and services that would vastly improve their lives. Inclusive growth in Africa will come from targeting innovations at them. African business leaders thus have a unique opportunity to chart a new growth course for the continent. But embarking on it first requires Africans to appreciate the extraordinary potential for growth within Africa. To play a critical role in enabling broader-based prosperity, senior African executives must understand that market-creating innovations are the missing piece in the puzzle. One way to encourage such initiatives is for firms to devote a percentage of their profits to developing

innovations that target nonconsumption. With the pandemic sure to exacerbate the nonconsumption problem, now is the ideal time to act. Furthermore, African firms can support governments by establishing public-private partnerships with the aim of democratizing innovation. For example, Wecyclers, a company that collects and processes recyclable waste, and the Nigerian government have formed a partnership to improve waste collection efforts. With median annual per capita expenditure of around $300 per person, African governments need partnerships such as these in order to fulfill their development potential. To be sustainable, economic growth in Africa can no longer benefit the few without benefiting the many. And development strategies must not be limited to weathering economic storms of the sort brought on by COVID-19. Developing innovative products for African nonconsumers will provide a more predictable, inclusive, and sustainable path to prosperity for hundreds of millions of people. As the coronavirus has reminded us, targeting anything less than prosperity for all will put the entire continent at risk. Carl Manlan, a 2016 New Voices Fellow at the Aspen Institute, is Chief Operating Officer at the Ecobank Foundation. Efosa Ojomo is a Senior Research Fellow at the Clayton Christensen Institute and a co-author of The Prosperity Paradox: How Innovation Can Lift Nations Out of Poverty. © Project Syndicate 1995–2020

MONDAY - TUESDAY SEPTEMBER 21 - 22, 2020

Feature

MONDAY - TUESDAY SEPTEMBER 21 - 22, 2020

Central Banking’s Next Act Howard Davies

hen US Federal Reserve Chair Jay Powell delivered his major speech at the Jackson Hole conference of central bankers last month, setting out the results of a yearlong review of the Fed’s monetary policy framework, he had stars in his eyes. Not the twinkly kind, but rather the notation that encapsulates the Fed’s views of interest rates, and unemployment. R-star is the equilibrium real interest rate, while u-star is the natural rate of unemployment. Both stars seem to have been falling in recent years, and, unlike in the old song, the Fed has had trouble catching them. Since 2012, when the Fed last restated its policy objectives, the Federal Open Market Committee’s members believe, on average, that r-star has fallen from 4.25% to 2.5%, while the median estimate of u-star has dropped from 5.5% to 4.1%. These declines have been associated with what Powell himself calls a “persistent undershoot of inflation from our 2% longer-term objective.” They have found that lower inflation expectations and lower interest rates have meant that the Fed has found itself at the effective lower bound for interest rates for long periods, implying less flexibility to stimulate demand when necessary. One consequence is that annual inflation in the United States has averaged only 1.75% over the last decade, and has undershot the target 63% of the time. The consequence is what Powell’s predecessor, Janet Yellen, calls “a pretty subtle shift” in policy, but one that could be critical over time. Powell has invented a new acronym – FAIT: a French word usually followed by “accompli,” signifying a completed task. But the acronym stands for a Flexible Average (2%) Inflation Target, which will take some time to come to fruition. The idea is that if achieved inflation falls below 2%, the Fed should be prepared to allow it to run above that rate, to catch up lost ground. And in assessing unemployment, policymakers should consider

employment “shortfalls,” rather than “deviations,” relative to its maximum level. That is a subtle distinction, but it means that the Fed may allow employment to climb above its maximum level for a while, as long as inflation does not accelerate. In the past, the Fed would have raised rates pre-emptively. As a sign of an accommodative monetary policy for some time to come, Powell’s speech has received a generally positive reception. Bankers may be excused for being less rhapsodic, because interest rates lower for even longer are not good for profits. But one consequence may be a steeper yield curve when inflation expectations rise. And banks could take some comfort from the fact that there was no mention of negative rates, which are not on the agenda in the US at least. But uncertainties remain. How will the Fed measure u-star in the future? Over what period will it determine an inflation shortfall? If the price level is now well over 3% below where it would have been had the target been met, would 5% inflation for a year or two be acceptable? We will only learn the answers over time. And what influence will this policy shift have on central banks elsewhere?

The European Central Bank is still in the midst of its own policy review, launched in January by its new president, Christine Lagarde. The ECB has even more reason than the Fed to examine its navel: annual inflation has fallen even shorter of the 2% target. The last time inflation was above 2% was 2012 and it has been chronically low ever since. So, should the ECB follow the Fed? One problem is that the ECB does not have a dual mandate like the Fed’s. It is enjoined to support other economic policies of the European Union, but that is clearly subordinate to maintaining price stability. And the ECB also has the German Federal Constitutional Court to worry about. Germany’s judges do not like quantitative easing, and they remain prepared to continue the fight. A fundamental review would involve governments, and potentially a treaty change, which is hazardous territory for the ECB. What other objectives might populist governments advocate? It is also arguable that the eurozone’s economic sluggishness has been more attributable to weak fiscal stimulus than to policy errors by the ECB, which will come under pressure to consider the Fed’s catch-up approach. But that would imply a big

jump in prices, if policymakers really wanted to recover all the ground lost since 2010. I expect modest change at best. And the Bank of England? There, the case for change is less powerful, as average inflation has been more or less on target, helped by a falling pound. And a review of the mandate is really a task for the government, not the BOE, as it is the government that sets the inflation target. But there are rumblings of discontent, nonetheless. Gordon Brown, who drafted the initial target in 1997, argued recently that the Bank should also try to achieve maximum employment. And others close to Prime Minister Boris Johnson’s cabinet want to rein in the BOE, bringing its decision-making closer to government, perhaps by giving it a nominal GDP target, which mixes up inflation and real growth, and forcing “coordination” with the Treasury. So, Powell’s “subtle shift” may not be the end of the story. Central banking seemed to have reached an “end of history” moment in the mid-1990s, when inflation targeting spread round the world after its success in New Zealand. A generation later, history has started again, with unpredictable consequences.

Howard Davies is Chairman of the Royal Bank of Scotland. © Project Syndicate 1995–2020

MONDAY - TUESDAY SEPTEMBER 21 - 22, 2020

Feature

MONDAY - TUESDAY SEPTEMBER 21 - 22, 2020

The Greatest Generation’s Squandered Legacy By Daron Acemoglu

o the interwar generation of the first half of the twentieth century, today’s crises would have appeared rather ordinary. They had seen much worse: the two bloodiest wars in human history, mass unemployment and destitution created by the Great Depression (which still dwarfs this century’s recessions), and far more serious threats to democracy in the form of Soviet communism, fascism, and Hitler’s National Socialism. Nonetheless, resolving today’s predicaments could be more difficult than in the past, because most will have to be addressed through global governance, which is in short supply. True, globalization also contributed to rising inequality and the destabilization of national economies in the early twentieth century, and the Great Depression was very much a systemic crisis, originating in the United States and afflicting most other countries by way of international markets. But, ultimately, the fundamental problems that the interwar generation needed to fix were at the level of the nation-state. Policymakers at the time recognized that macroeconomic instability, unregulated market economies, and mounting inequalities were the root causes of most of their problems. By experimenting with institutional remedies and formulating new ideas, they laid the foundation for the social-democratic welfare state. Macroeconomic management, progressive taxation and redistribution, minimum-wage laws, workplace safety regulations, government-provided health insurance and retirement benefits, and a social safety net for the least fortunate became the norm. The modern welfare state first took shape in Scandinavia – most notably in Sweden after the Workers Party’s first electoral victory in 1932 – and was further enshrined in the United Kingdom’s 1942 Beveridge Report, which offered a comprehensive institutional outline even as

Daron Acemoglu, Professor of Economics, MIT

World War II was still raging. Over the course of the following decade, similar visions were articulated across continental Europe. In each case, the policies being proposed lay fully within the purview of national governments, and could be designed in such a way as to strengthen democracy and marginalize the political forces that had led to two world wars. Of course, the imperative to maintain peace went beyond national borders; but that project started with ensuring macroeconomic stability and shared prosperity at the national level. As Immanuel Kant had prophesied in 1795, robust democracy at home would engender cooperation abroad. But post-war leaders pinned their hopes on more than Kant’s theory. In Europe, they forged new supranational institutions, starting with the European Coal and Steel Community, established by the 1951 Treaty of Paris. These arrangements worked exceptionally well, ushering in four decades of democratic flourishing, international peace, macroeconomic stability, and widespread prosperity. Never before have so many countries enjoyed such fast, broadly shared, and simultaneous economic growth. The question for today is whether this glorious post-war achievement can be repeated. Will the pandemic be the wake-up call that prompts democratic governments to develop a new social contract for the twenty-first century? Yes, but only if we come to grips with the global nature of today’s crises – not just COVID-19, but also climate

change, the threat of nuclear war, and other shared risks. On the issue of climate change, national solutions are simply insufficient at this point. And the situation may be even worse with respect to the nuclear threat, considering that this category of existential risk is being intensified by the ongoing expansion and “modernization” of existing nuclear arsenals. Moreover, many other problems that appear national are ultimately global. Consider inequality, the three major causes of which are globalization, automation, and the growing power imbalance between capital and labor. Globalization has contributed to the problem partly because its rules have been written to benefit business owners, financial capital, and high-skilled workers over everyone else. For example, labor-intensive products can be manufactured in countries where collective bargaining arrangements are weak or non-existent, such that wages are systematically repressed. No single country wholly controls the rules that allow such outsourcing and offshoring, and most do not have the option of isolating themselves from globalization. Similarly, while national governments can influence automation through tax and regulatory policies, their control is ultimately limited. If the Chinese or US government is pressuring multinational companies to develop more powerful surveillance technologies, and if Big Tech’s priorities lie in relentlessly substituting algorithms for human workers, these trends will determine the trajectory for the entire world. While

the tendency toward laborreplacing automation has already inflicted major costs on advanced-economy workers, it threatens even greater pain for developing countries, where abundant labor is the chief production input. Finally, there are very few ways for labor to regain its bargaining power when the constant threat of capital flight has tied national policymakers’ hands. Even if national governments were to raise taxes on capital above the current meager levels, much of the hoped-for revenue would be funneled elsewhere through accounting tricks and offshore tax havens. Dani Rodrik of Harvard University has argued that limiting economic globalization can create more room for national macroeconomic policies. But curtailing globalization would not reduce the scale of global problems. On climate change, the nuclear threat, and many other issues, there is no choice but to formulate global solutions through multilateral institutions. The experience of post-war Europe shows that to build effective institutions, there first must be a shared vision. Yet that is precisely what the international community currently lacks. Making matters worse, already weakened multilateral institutions are likely to suffer even more in the near future, as the allocation of COVID-19 vaccines deepens existing fault lines between countries and regions. We could have avoided the governance failures that brought us to this point. Despite ample warning, we have yet to take seriously, let alone prepare for, the global challenges that await us. The interwar generation might be underwhelmed by our current problems. But it would no doubt be impressed by the mess we’ve created for ourselves. , is co-author (with James A. Robinson) of The Narrow Corridor: States, Societies, and the Fate of Liberty.Copyright: Project Syndicate, 2020. www. project-syndicate.org

MONDAY - TUESDAY SEPTEMBER 21 - 22, 2020

Aviation

MONDAY - TUESDAY SEPTEMBER 21 - 22, 2020

Emirates to resume flights to Luanda starting October 1

mirates’ African network will expand to 15 destinations with the restart of Luanda, Angola from 1 October. The airline continues to gradually and safely restore its network, delivering on its health and safety promise as it responds to growth in passenger demand across the globe. Flights to Luanda will initially operate once a week on Thursdays. Emirates flight EK793 will depart Dubai at Luanda at 1825hrs, arriving emirates.com, the Emirates 0945hrs, arriving in Luanda in Dubai at 0510hrs the next App, Emirates sales offices, via at 1430hrs. EK794 will depart day. Tickets can be booked on travel agents as well as online

travel agents. Customers can stop over or travel to Dubai as the city has re-opened for international business and leisure visitors. Ensuring the safety of travellers, visitors, and the community, COVID-19 PCR tests are mandatory for all inbound and transit passengers arriving to Dubai (and the UAE), including UAE citizens, residents and tourists, irrespective of the country they are coming from. (Source: Emirates)

Nigeria:Enugu welcomes Ibom Air, as airline says it has right aircraft to fly route

South Africa commits $650 million to ailing airline SAA, administrator says

he South African government has told administrators of South African Airways (SAA) that there is a “clear cabinet commitment” to provide the state airline with 10.5 billion rand ($650 million) of funds, one of the administrators said on Friday. The administrator told an SAA creditor meeting that the government’s communication had the support of National Treasury but the timelines and mechanisms for the funding were yet to be finalised. The administrators took control of SAA in December after almost a decade of

financial losses and published a rescue plan for the airline in June following repeated delays and wrangling over its future. But the plan, which envisages scaling back SAA’s fleet and cutting jobs, needs at least 10 billion rand to work, and the cash has not materialised since July, when creditors approved the restructuring plan. The Department of Public Enterprises, the ministry responsible for SAA, said on Thursday that it was still trying to source the necessary funding and that it was assessing proposals from several potential strategic equity partners.

nugu State government, represented by the Deputy Governor, Madam Cecelia Ezelio has expressed appreciation to the management of Ibom Air for adding Akanu Ibiam International Airport, Enugu to their routes. This is just as the Chief Operating Officer of Ibom Air, Mr George Uriesi said the airline operates the right aircraft type that will make the newly introduced Enugu route profitable to operate. Uriesi made the declaration while answering questions from newsmen during the inuagural flight of Ibom Air to the Akanu Ibiam International Airport, Enugu on Monday. The Enugu State Deputy Governor, Madam Cecelia Ezelio who personally came to welcome Ibom Air to Enugu said ” the choice of Enugu Airport as the gateway to the South East geo-political zone of the country is well appreciated and I am assuring you that your decision is a right one”. Speaking about the new route, Uriesi said : ” we are very hopeful and confident that Enugu will be a good destination and after Enugu is settled and comfortable we will move to the next route.” “The reason for this is that we the right aircraft type. We don’t have to carry a hundred passengers in order to make good the business. Our break-

even point is lower than many of our competitors and as long as we have certain number of passengers per flight we are comfortable, and certainly, the market provides the number of passengers per flights. As long as we have those passengers or more, we continue to be profitable”. Uriesi further revealed that in commercial flight operations, aircraft type is crucial. According to him, ” What’s important is that when you have the right equipment, if someone carries 60 passengers and it doesn’t work for him, we can carry the same 60 passengers and it will work for us. We burn far less fuel than those who fly the bigger aeroplanes, we have more reliability because the aircraft are relatively new and very well maintained. So far, it’s been good”. On the Enugu route, the Ibom Air COO said : ” As the gateway to the South East, we are very proud to associate and expand our services to the South East through Enugu and we are grateful that the government and the people have come in full force to welcome Ibom air. We will partner to grow traffic in and out of not just Enugu but the entire south east starting from Enugu”. ( Source:Vanguard News Nigeria)

MONDAY - TUESDAY SEPTEMBER 21 - 22, 2020

Feature

MONDAY - TUESDAY SEPTEMBER 21 - 22, 2020

Networking is one of the most important parts of growing a business!

fter all, if you don’t get out there and spread the word about what you do and how you do it, then who will. Networking comes in many forms, and frankly, you can network all day and every day: over breakfast, during the morning, at lunchtimes, in the afternoon, after work, and in the evening. Not forgetting the networking opportunities online. Which is why choosing what kind of networking suits best you, and your business, is so important. And why we at Business for Breakfast, strive to make networking fun, easy, relaxed, but structured and effective to make sure you get the best from it. One of the first things we say to our networkers – those who are new to it, and maybe

visiting one of our BforB groups as a guest – is to make sure you bring plenty of business cards. Yes, even in this electronic age, business cards are still a vital tool in promoting yourself, and what you do and offer. You may come to a meeting, chat away to fellow members and guests, and chance across people you know that you would like to do business with – either as a potential client, or as someone who could be of help to you. Swapping business cards is the easiest way to make sure that you follow up the contact, arrange to meet for a 1-to-1, and then hopefully do business, or give business. But a business card can do more than simply give out your contact details. It is also a great marketing tool, too. A well thought out business card, for instance, has the potential

to engage conversation – it can provoke comment and interest. Another thought is this: networkers collect lots of cards during the course of a meeting, and plenty of them never see the light of day once back in the office, and they’re filed away in a draw. But a business card that gets noticed, and leaves a lasting impression, is the one that might, just, be kept on a desk, or followed up. Don’t forget, a business card needs to fit into a wallet, or a card holder. Make them too big, or even too chunky, and they’ll be filed with all the others. The card must also have your contact details showing clearly: your name, phone number(s), email address, and website being the most important. Don’t forget your company logo, and an outline of what

you do A well-designed card adds further value, making an immediate, and even lasting, impression, and prompting immediate response: “…I like your card, very impressive…” and immediately you are striking up conversation. A professional looking business card, like a welldesigned website, strikes an immediate good impression with someone you meet for the first time. And when you’re networking, first impressions can make an impact. Networking is such an important part of the marketing mix. At a Business for Breakfast meeting, turning armed with a good business card is like taking an extra member of the sales team. And through a good 60 seconds pitch into the mix, and you’re cooking on gas. But that’s for another blog… Authored by: Business for Breakfast Business for Breakfast (BforB) is internationally recognised for creating successful networking meetings, events and training for referral marketing. Our global offices are in Australia, Germany, Czech Republic, Spain, Slovakia, Ghana and headquartered in UK. We create an environment where you can build quality relationships within your group, backed up by an ongoing member support programme. BforB is committed to helping small to medium scale businesses expand. In our professional network, members meet regularly in business networks to develop relationships, support each other and to share and record referral business. We are here to help you get new business from quality business introductions and referrals made through our meetings. Contact us: 059 4 016 432 | info@bforbgh.com | Facebook & LinkedIn: @bforbghana | www. bforb.co.uk

Business for Breakfast (BforB)

MONDAY - TUESDAY SEPTEMBER 21 - 22, 2020

News

MONDAY - TUESDAY SEPTEMBER 21 - 22, 2020

UBA USA CEO Sola Yomi-Ajayi Appointed to US EXIM’s Sub-Saharan Africa Advisory Committee

ola Yomi-Ajayi, the CEO of the United Bank for Africa(UBA)’s operations in the United States, has been appointed to the Export-Import Bank of the United States (US EXIM) Committee on Sub-Saharan Africa for 2020/2021. Established by the US Congress, the Sub-Saharan Africa Advisory Committee provides guidance and advice regarding US EXIM policies and programmes designed to support the expansion of financing for US manufactured goods and services in Sub-Saharan Africa. The committee is composed of prominent members of the US business community and Ms. YomiAjayi is the sole representative of an African institution. UBA USA is the only Sub-Saharan African deposit-taking institution regulated in the United States and provides a unique portfolio of banking solutions to corporates, governments, multilaterals, and development organisations transacting with Africa. UBA USA can assist in trade finance, treasury, foreign exchange, transaction management and lending, drawing on UBA’s seventy-year heritage and unique pan-African network. UBA’s Group Chairman, Tony O. Elumelu, stated that the appointment is recognition of the role UBA has played over decades in promoting and supporting large and small businesses in all its 20

countries of operations in Africa. “The appointment of Sola, as a member of the US EXIM Advisory Committee for Sub-Saharan Africa is welcome news. UBA’s global network of offices in New York, London and Paris, permits us to be the preferred financial intermediary between Africa and the rest of the world. Our mission at UBA is fully aligned with the objectives of the US EXIM’. The EXIM President and Chairman, Kimberly A. Reed, who congratulated Yomi-Ajayi and the other appointees said, “With six of the 10 fastest-growing economies in the world and more than one billion consumers, Africa is poised to play a pivotal role in the global economy. Supporting US exports to sub-Saharan Africa is one of our top priorities at EXIM, and my deepest congratulations goes to the new members of the EXIM Sub-Saharan Africa Advisory Committee”. Others appointed into the committee are Daniel Runde, who chairs the committee, C. Derek Campbell, Chief Executive Officer, Energy and Natural Resource Security, Inc; Scott Eisner, Senior Vice President, African Affairs, U.S. Chamber of Commerce; Rebecca Enonchong, Founder and Chief Executive Officer AppsTech; Lori Helmers, Executive Director/ Americas Export Finance Head, JPMorgan Chase Bank;

Sola Yomi-Ajayi, CEO, United Bank for Africa(UBA)

Florizelle Liser, President and Chief Executive Officer, Corporate Council on Africa; Mima Nedelcovych, Chairman, AfricaGlobal Schaffer; EE Okpa, Principal, The OKPA Co; Marise Duff Stewart, Director Customer and Industry Relations, Progress Rail, a Caterpillar Company and Paul Sullivan, President – International Business, Acrow Bridge. EXIM is an independent federal agency that promotes and supports American jobs by providing competitive and necessary export credit to support sales of U.S. goods and services to international buyers.

TechGulf Board appoints Franklin Asare as CEO to accelerate growth strategy in Africa

echGulf, a technology company based in San Francisco, CA, and Accra, Ghana, with a mandate to provide stable and secure data storage hardware and services across Africa, announced today that its Board has appointed Franklin Asare as Chief Executive Officer, effective immediately. Franklin Asare will manage TechGulf’s continental operations, and lead global technology partner product sales and services. In his previous role as Country Director of Oracle Ghana, Asare was instrumental in the establishment of the Ghana-Oracle Digital Enterprise Program (GODEP), an initiative in partnership with the Government of Ghana, that helps startups scale and grow with the resources of the Silicon Valley technology giant. Asare said, “I am thrilled to join the experienced TechGulf team and look forward to building

on the incredible foundation the Board has set, to grow the organization into the leading technology partner and premier provider of tech products and services in Africa.” Committed to providing accessible technology solutions to all businesses on the continent, and streamlining business connections with U.S. partners, TechGulf guides U.S. technology companies as they navigate the complex bureaucratic processes required to conduct business in Africa. Its first strategic partnership is with Overland-Tandberg, a developer and manufacturer of hybrid cloud IT infrastructure and data protection solutions, and the largest privately held Black-owned global technology company in the United States. TechGulf and OverlandTandberg announced the groundbreaking partnership during the closing bell ceremony

at the NASDAQ Market site in Times Square, New York on February 11th 2020, marking an important step, post the “Year of Return,” as Africans and BlackAmericans find opportunities to work together and forge lucrative business opportunities. TechGulf and its partners are also in the planning stage to build an innovation district and technology park in Accra. The park ecosystem will include a state-of-the-art tier 3 datacenter. Upon completion, cutting-edge anchor institutions and leading companies will connect with startups, business incubators, and accelerators. “The datacenter will give us the opportunity to foster the next generation of technology leaders, turning Accra into a hub of technological advancement, achievement, and innovation in Africa,” Asare added. Kofi Bonner, Board Chairman and Founder of TechGulf, said, “We

United Bank for Africa Plc is a leading Pan-African financial institution, offering banking services to more than twentyone million customers, across over 1,000 business offices and customer touch points, in 20 African countries. With banking operations in the United States of America, the United Kingdom and presence in France, UBA is connecting people and businesses across Africa through retail; commercial and corporate banking; innovative cross-border payments and remittances; trade finance and ancillary banking services.

are excited to have Franklin Asare on board and we look forward to the leadership, creativity, and passion he will bring to our team. We are confident that he will lead us in the right direction as we seek to build an organization that will attract disciplined, smart, and energetic people. He has the full support of the Board to ensure his success; as his success will translate into the success of the entire organization and ultimately, technological growth and development in Africa.” TechGulf LLC is a technology company based in San Francisco, CA and Accra, Ghana founded by Kofi Bonner with the capacity, capability, and competence to develop and support digital infrastructure to accelerate the growth of Africa’s digital economy.

must read WTO: Okonjo-Iweala jumps 1st hurdle as 3 candidates drop out P29

MONDAY - TUESDAY SEPTEMBER 21 - 22, 2020

Feature

MONDAY - TUESDAY SEPTEMBER 21 - 22, 2020

IMF Lending During the Pandemic and Beyond

n the face of unprecedented uncertainty and the severe economic impact triggered by COVID-19, the Fund continues to adapt its lending. At the same time, it aims to ensure realistic targets, uphold the credibility of programs, and foster national ownership. To date, the Fund has provided financial assistance, mainly through emergency lending and precautionary lending tools, to about 80 countries. In addition, more than 30 countries have expressed an interest in Fund-supported programs to rebuild financial safety nets, and deal with the immediate aftermath of the pandemic. To help members cope with this once-in-a-century pandemic, IMF lending programs are adapting— through innovation and increased flexibility—as countries move from the initial containment phase, to stabilization, and eventually to recovery.

some other measures—such as monetary budget financing— may risk undermining hardwon gains in policy making and institution building, set damaging precedents, and would be hard to unwind. During the current crisis, the Fund’s program monitoring (including on emergency financing) has put a greater focus on the quality and governance of spending measures—rather than specific and measurable conditions, for example, on central government borrowing, that are traditionally attached to IMF lending. The reason for this is simple. The unprecedented uncertainty brought on by the pandemic means it has become more difficult to plan economic policies, and targets risk quickly becoming obsolete. This trend is likely to continue for the duration of the pandemic until a firmer view on the economic outlook and financing conditions can be established. Notwithstanding a more holistic assessment of policies in the meantime, countries will need to demonstrate that Fund resources are being used properly.

Near-term focus: macroeconomic stabilization IMF-supported programs in the near term focus primarily on stabilizing the economy. This includes establishing spending priorities (for example on health and other social spending, as well as liquidity and income support to the most affected firms and households). Monetary policy should be as accommodative as possible while being mindful of inflation risks, and financial sector policy should seek to avoid a credit crunch while maintaining sound balance sheets. However, conventional policies alone may not be enough. In some circumstances, additional measures may be considered. For instance, the flexibility built into the existing regulatory framework could be used to the fullest, and there may be further room for using unconventional monetary policies. However,

Dealing with uncertainty At the same time, country authorities will need to remain agile in reacting to economic shocks and addressing future risks. This puts a premium on regular discussions between country authorities and Fund staff about adverse scenarios and adequate policy responses in both program and surveillance cases. With rising debt levels, more countries are likely to be vulnerable to debt distress. When a country’s debt sustainability is unclear, extending the maturity of government liabilities can be helpful in determining the future course of action until there is further clarity about the need and scope for a possible debt treatment later on. This involves costs—such as rating downgrades, and possibly the declaration of a credit event—but, in the end, investors can benefit by resolving the

By Robert Gregory, Huidan Lin, and Martin Mühleisen

underlying problems that led to loss of market access. By freeing up critical resources and reducing pressure on foreign reserves, maturity extensions can also help reduce the need for austerity and monetary tightening that can deepen economic pain. Finally, many countries may be able to manage the pandemic and its economic fallout without Fund financing but may want to seek insurance against unforeseen shocks. For those, the Fund’s precautionary lending tools are an attractive option that can ease market access at lower costs. These can be unwound gradually as conditions improve, for example, countries with Flexible Credit Lines could transition to Short-term Liquidity Lines. Supporting structural adjustment to a “new normal” As uncertainty abates, Fund lending will progressively shift, reflecting the need to support countries restoring policy space and reducing debt vulnerabilities. For most countries, the postpandemic economy will be different from what existed before. As recovery takes hold, and the effects of the crisis become clearer, Fund programs will need

to shift focus to growth-enhancing reforms, to help members achieve strong and sustainable recoveries from the crisis. For example, reforms to allow employees to move easily in and out of jobs are less critical to containing the virus and stabilizing the economy but may be important in adjusting to a new normal as economies could be undergoing significant structural change, coping with digital technologies and the effects of climate change. As a result, the IMF will continue its collaboration with other international financial institutions to implement structural policies. These include health, debt management, and social protection, improved governance in lending, as well as steps to improve resilience to future health and climate risks. This crisis has tested the resilience and agility of governments and central banks to the extreme. The IMF is committed, together with its partner organizations, to matching these efforts on the international level. Efficient deployment of the Fund’s lending tools will continue to play an integral part in this regard. (blogs.imf.org/)

MONDAY - TUESDAY SEPTEMBER 21 - 22, 2020

News

MONDAY - TUESDAY SEPTEMBER 21 - 22, 2020

OPDAG demands review of oil palm benchmark valuation on local products

he Oil Palm Development Association of Ghana (OPDAG) has called on government to review its 50 percent benchmark valuation policy on local products to meet the standard of producers. With the 50 percent benchmark, importers had advantage over local producers and could stifle the local oil palm industry. Mr. Samuel Avaala, the President of OPDAG made the call at an advocacy training workshop for executives of the Association in Cape Coast. The training was organised by Solidaridad, a Non-Governmental Organization (NGO) with focus on stimulating sustainable supply chains through innovations in production in West Africa with funding from the Swiss Government and the kingdom of Netherlands. It was designed for key actors in the Oil Palm Industry to ensure a vibrant and sustainable oil palm sector and engage policy makers on the challenges of the sector to find potential solutions. Mr. Avaala stressed that the Association was focused on promoting socially responsible, ecologically friendly and economically sustainable production and had engaged farmers, millers, and refiners. “One of the biggest problems we have had over the years was the absence of the regulatory or

institutional framework. “You can take cocoa for example, because of Cocoa board, cocoa is a different story when your compare it to other tree crops like oil palm”,Mr Avaala lamented However, he said with the establishment of the Tree Crop Development Authority (TCDA), the sector would be well regulated to achieve its full potentials. “The establishment of the Tree Crop Development Authority is good news for OPDAG and it is the beginning of something good, 10 years from now, I believe this

institutional framework will make a difference”, he added. Mrs. Susan Yendi, Country Representative for Solidaridad explained that the capacity building programme was under the second phase of Solidaridad’s Sustainable West Africa Palm Oil Programme (SWAPP II). Under it, more than 10,000 palm farmers were trained in best management practices to improve the oil palm value chain to increase incomes of small holder farmers and generate economic growth and jobs in Ghana and beyond.

Government urged to prioritise domestic revenue mobilization

he Tax Justice Coalition has asked government to prioritise domestic revenue mobilisation and to cut down on the many tax incentives to individuals and companies to raise enough money for development.\ The group said the many tax incentives and abuses by corporate organisations had led to a significant shortfall in tax revenue, necessitating government to borrow to finance its development agenda. In a statement to commemorate this year’s Global Tax Week, Mr Bernard Anaba, the coordinator of the civil society group, said the government had lost billions of cedis because of tax incentives and tax abuses by corporations and wealthy individuals. He said these monies could

Tax Justice Coalition Ghana logo

have been used to strengthen public services delivery, improve access to health, water and sanitation, decent housing and transportation. Mr. Anaba urged the government to embark on progressive reforms

that tax large incomes, assets, and wealth more, introduce a digital services tax, and end bilateral tax treaties, which do not enure to the country’s benefit. The Tax Justice Coalition also called for policies to promote domestic and regional tax transparency measures to identify and curb illicit financial flows by promoting country-by-country reporting for multinational corporations and public registers of beneficial owners of legal entities. There is also the need for the promotion of exchange of information to ensure that all tax administrations will have access to the needed information to curb international tax evasion and avoidance. It also strengthens the fight

She said the programme had already engaged the Environmental Protection Agency (EPA), the Ministry of Trade and Industry (MOTI), and the planting for Export and Rural Development (PERD). Mrs Yendi further stated that the engagement would shape the activities of the sector in complying with policies and offer opportunities to farmers to air their views on policies affecting them to create an enabling environment for their businesses to thrive.

against harmful tax practices which facilitate transfer mispricing, tax avoidance and illicit financial flows, including wasteful tax incentives, offshore financial services and harmful tax treaties. “The COVlD-l9 pandemic has underscored the role of states in the national economy and the provision of public goods and services for the welfare of their people. This has often been dismissed by the neoliberal agenda,” Mr Anaba said. He said the pandemic presented an opportunity to push for systemic changes and to create alternatives to the current neoliberal development model that values people and planet over profit and greed. “It creates an opportunity to reimagine a global economy and international financial architecture that is anchored on social justice and substantive equality, which is not possible without tax justice,” Mr. Anaba said. GNA

MONDAY - TUESDAY SEPTEMBER 21 - 22, 2020

GHANA NATIONAL CHAMBER OF COMMERCE AND INDUSTRY

NOTICE OF THE 44TH ANNUAL GENERAL MEETING OF THE GHANA NATIONAL CHAMBER OF COMMERCE AND INDUSTRY

In accordance with Clause 26 (1)(a) of the Chamber's Rules (1988), NOTICE is hereby given that the 44th Annual General Meeting (AGM) of the Ghana National Chamber of Commerce and Industry (GNCCI) shall be st held on Wednesday 21 October, 2020 at 10:00am at the Ghana Shippers' House Conference Room, Near Fidelity Bank, Ridge - Accra. PART 1

A. PLENARY SESSION: I. Address by the President of the Ghana National Chamber of Commerce and Industry ii. Solidarity messages iii. Address by the Special Guest of Honour iv. Vote of Thanks PART 2

B. BUSINESS SESSION: TO RECIEVE AND DISCUSS THE FOLLOWING: i. The Report of the Council for the year 2019 ii. The National Treasurer’s Report for 2019 iii. The Account for the year duly audited and the Auditor's Report thereon for 2019 iv. Appointment of Auditors C. ELECTIONS: a. To elect the following National Oﬃcers for 2020-2022 I. The President ii. The 1st Vice President iii. The 2nd Vice President iv. The National Treasurer b. To consider and discuss motions of which due notice have been given You are cordially invited to attend the above meeting. By Order of the Council SIGNED Mark Badu-Aboagye Chief Executive Oﬃcer

News

MONDAY - TUESDAY SEPTEMBER 21 - 22, 2020

WTO: Okonjo-Iweala jumps 1st hurdle as 3 candidates drop out

he dream of Nigeria’s Dr. Ngozi Okonjo-Iweala becoming the next Director General of the World Trade Organisation (WTO) got a boost yesterday when the body’s General Council listed her among the five candidates that made it to the second stage of its screening. The other candidates that made it with Okonjo-Iweala, a former finance minister in Nigeria and former managing director of the World Bank, are Saudi Arabia’s former minister of economy and planning, Mohammad Maziad AlTuwaijri; UK’s former secretary of state for international trade, Liam Fox; South Korea’s trade minister, Yoo Myung-hee; and Kenya’s former international trade minister, Amina Chawahir Mohamed Jibril. “Their expertise and high professional and personal qualities are highly valued and respected by all members,” WTO’s General Council Chairman, David Walker, said in a statement yesterday. The Geneva-based WTO said Mexico’s Jesus Seade, Egypt’s Hamid Mamdouh, and Moldova’s Tudor Ulianovschi did not secure enough support in a first of three rounds of voting and have been dropped from the race. It plans to reduce the contestants to two final candidates in the coming weeks. Walker of New Zealand and his two co-facilitators, Dacio Castillo of Honduras and Harald Aspelund of Iceland, were impressed with the five candidates shortlisted. “Throughout the six days of consultations it was clear to us that the entire membership is both committed to and fully engaged in this process,” Walker, who expressed his gratitude to all the candidates, including those who will not advance further, said. “Members consider all the candidates highly qualified and respected individuals. I would also like to pay tribute to the dignified manner in which they, their delegations, and their governments have conducted themselves in this process. “Their willingness to engage, especially at these challenging times, has been greatly appreciated, and the Organisation is in their debt. Their expertise and high professional and personal qualities are highly valued and respected by all members. I am sure I speak on behalf of all of you in wishing them well in their future endeavours,” he added.

Dr. Ngozi Okonjo-Iweala becoming the next Director General of the World Trade Organisation (WTO)

“

the distribution of preferences across geographic regions and among the categories of members generally recognised in WTO provisions: that is (Least developed countries), developing countries and developed countries” During the confidential consultations, Walker Castillo and Aspelund, were said to have posed to each delegation a single question: “What are your preferences?” Members then submitted four preferences to the “troika” of ambassadors. Walker said the second phase of consultations would begin on September 24th and run until October 6th, after which the WTO would announce two final candidates. He said the goal is to name a new WTO DG by November 7. Then, “members would be asked in the confidential consultations to express two preferences to the

facilitators with an eye to bringing the number of candidates from five to two. Following this process, Walker will call another Heads of Delegations meeting at which the results will be announced to the WTO membership. The timetable for the third and final round of consultations will be announced at that time. “The ultimate objective of this measured and clearly defined process is to secure a consensus decision by members on the next Director-General. The General Council agreed on July 31 that there would be three stages of consultations held over a twomonth period commencing September 7,” Walker said. He pointed out that the consultation process taken by facilitators had been set by guidelines established by the General Council in a 2002 decision. According to these guidelines, the key consideration in determining which candidate is best poised to achieve consensus is the “breadth of support” each candidate receives from the members. It revealed that during the DG selection processes of 2005 and 2013, breadth of support was defined as, “the distribution of preferences across geographic regions and among the categories of members generally recognised in WTO provisions: that is (Least developed countries), developing

countries and developed countries”. The Chair said in conjunction with his colleagues, they were guided by the practices established in the General Council proceedings, explaining further that the decisions made clear that “breadth of support means the larger membership”. The remaining five contenders are either current or former ministers, something that trade officials had previously said was an important characteristic for a future Director-General. The vacancy for the WTO’s top job arose when Brazilian directorgeneral, Roberto Azevedo, decided to step down at the end of August, a year before his term was due to end. The campaign to lead the WTO during the most turbulent period of its 25-year existence is playing out against the backdrop of the pandemic, a worldwide recession, the US-China battle for trade supremacy, and the American presidential election. The vacancy offers an opportunity for the US, the European Union, and other nations to reshape the organisation, whose mission of economic integration was under threat from protectionist policies around the globe. Without reform, the WTO risks being sidelined during the biggest economic crisis in a century. (Thisdaylive)

MONDAY - TUESDAY SEPTEMBER 21 - 22, 2020