Business24 Newspaper- 28th Sept 2020 by Business24 Online

THEBUSINESS24ONLINE.COM

MONDAY SEPTEMBER 28, 2020

NO. B24 / 106 | NEWS FOR BUSINESS LEADERS

MONDAY SEPTEMBER 28, 2020

Works to begin on three airstrips By Dominick Andoh kofi.pra@gmail.com

W Dr. Ernest Addison, Chairman of the Monetary Policy Committee of the Bank of Ghana, is today expected to announce an unchanged policy rate after a marathon of deliberations

No room for further policy rate cuts in 2020—EIU By Nii Annerquaye Abbey abbeykwei@gmail.com

he Economist Intelligence Unit (EIU) says there is no room left for a policy rate

cut in the remainder of the year, as the central bank announces its penultimate monetary policy interest rate decision for 2020 today. The central bank last reduced its policy rate in March, by 150

basis points to 14.5 percent, as part of measures to mitigate the impact of the coronavirus pandemic on the real sector. The rate has since been left unchanged despite inflation remaining volatile within the period.

he government has announced that it has successfully secured

terms for an amended power purchase agreement (PPA) with CENIT Energy Limited (CEL), one of the independent power producers (IPPs) with whom

Cont’d on page 3

Qatar Airways to stir competition with 4x weekly flights By Dominick Andoh kofi.pra@gmail.com

Cont’d on page 2

Gov’t scores a victory in IPP talks, but more battles loom By Benson AFFUL affulbenson@gmail.com

orks are expected to begin next month on three airstrips—Yendi, Navrongo, and Mole—for which funds have been secured. The three airstrips are part of about 34 airstrips and airports in the country that are mostly non-active and need revamping to become suitable for commercial passenger operations.

talks are currently being held to renegotiate their PPAs. Cont’d on page 3 Cont’d on page 2

ulf carrier Qatar Airways will start operating four weekly flights from the Kotoka International Airport from Tuesday, September 29. Cont’d on page 7

ECONOMIC INDICATORS *EXCHANGE RATE (INT. RATE)

USD$1 =GHC 5.6734*

*POLICY RATE

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 142020 2020 MONDAY SEPTEMBER SEPTEMBER 28,

EDITORIAL Editorial

Pay before boarding order needs a rethink

Revamping of old airstrips to open up Aviation Minister and On the development of the country the technical persons from the airstrips, the Minister The new directive for all passengers to pay for their COVID-19 test online before their arrival at Kotoka International Airport has been meet with resentment by airlines and lans by government passengers.

condition for boarding of flights country� s COVID-19 testing to KIA.” regime.

T h e n e w d i re c t ive , h a s however, been described by the Ghana Civil Aviation airlines as detrimental to the Authority (GCAA), the renewed efforts to stimulate demand for air travel, given three locations werethat to revamp some cash payments remains At a time when passengers are found most suitable to be the inactiveto terms airstrips still coming with the predominant mode of payment immediately revamped. in various the for most Ghanaian travelers. US$150 � GHCparts 900� of mandatory This is because the country is COVID-19 laudable test andupon payment for An airline operator who were found arrival at KIA, thetransform new directive airstrips will significantly wishes to remain anonymous, has generated more debate. intact with little or no the economies of the told Business24 that “The cost is

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Passengers districts travelling to Ghana beneficiary and will from Tuesday, September 15 regions when completed. be required to make online Works are to payments for expected the mandatory begin C O V I next D - 1 9 month t e s t on a t three Ko to k a airstrips—Yendi, Navrongo, International Airport prior to boarding of which their funds flight, a and Mole—for d i r e c t i v e b y F r ntier have been secured. oThe HealthCare� the company three airstrips are part contracted to carry out the of abouttest34at airstrips antigen KIA--to alland airlines airports therevealed. country that on Fridayinhas areB mostly y t h e non-active n e w d i r eand ctive, need revamping to become “Passengers are required to show proof of payment to airlines as a suitable for commercial passenger operations. After visits to the KeteKrachi, Mole, Navrongo and Yendi airstrips by CONTINUED FROM COVER

encroachment, hadthis already too high and now new policy is also going to be enough space for the iextension m p l e m e noft ethe d . runway’s There are hundreds of Ghanaian traders length and width, and who travel to buy goods to retail the in thetraditional country. rulers and opinion leaders of the “Most of them don� t carry any area werepayment supportive electronic cardsand to be willing to help government able to pay online. They should have the secure theflexibility sites. to pay cash when they arrive.” Aviation Minister Joseph TheAdda Consumer Protection Kofi told Busines24 Agency � CPA� has also raised in Yendi that: “The critical questions about the President has directed relatively high cost of the us to construct as many airports and airstrips as possible to boost business and improve tourism.

The CPA� s Chief Executive Officer, Kofi Kapito, said in as stated: much as the“Designs governmenthave want to been imported done, cases feasibility curb of the respiratory disease, it must completed, fundingnot burden the passenger charge has been secured,butand what is enough to cover their we are waiting for the cost and not to profit from the signing of the commercial passenger.

agreement. “Look around Africa and you have come for seeThe thatsponsors what is paid in Ghana withtest funds to show what the is the highest. Why should that be� ” they have available and the Minister for Finance He also raised questionshas about why theat Noguchi looked it and it’sMemorial fairly Institute for Medical reasonable to us. SoResearch we are of the University of Ghana, was not waiting for the approval made to handle the testing for a from the Finance reasonable fee butMinistry rather a to say whether it fits into contract given to a foreign company to do framework; what Noguchi their financial could adequately handle. that’s what we are waiting Business24 would like to urge for to proceed.” a flexible approach allows Given the thatgood passengers to either pay online intensions of government, or cash on arrival. Business24 would stress the importance of working towards the full realization of the three projects.

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

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, Mr. Awuah� s remarks were response was to enforce remote and ensure less-paper operations reinforced by majority of the top working while realigning workers� and requirements for social distancing. In the long run, these bank executives who responded roles. measures may result in possible While the majority, 69 percent, to the survey. The respondents Contraction layoffs for some whose jobs of respondents indicated that advised the Bank of Ghana to automated,” the report increase stakeholder consultation remote working will become a become Prior to the Ghana Statistical said. permanent option going forward, in orderfrom to cover propose more percent in July, before falling by Service’s releasing the GDP data Continued Commenting on the findings of there was general consensus that beneficial policies. 0.9 percentage points in August. second quarter the the survey, which was ofonthis the the new norm will ultimately lead for a sharp downturn year, the EIU’s prediction was a This, they said, will help to“Despite the shedding of workers whose theme “The new normal� banks� economic activity, we expect 4.2 percent contraction of the estimate the timelines extent in In its latest countryand forecast, response to COVID-19”, PwC� s jobs have become automated. inflation to increase in to which policies the average the businessthe advisory firmof said in 2020. Vish Country economy Senior Partner, “ M o s t b a n k s i n t e n d t o Ghanaian reflectingincorporate ongoing currency regulator will remain the central bank will keepavailable. its word 2020, According to the firm, although cautioned that for permanently remote Ashiagbor, S o trying m e r to esp o n ddown e n t s the s i mcost p l y weakness, monetary easing, asset on force it still stands by its prediction of working as an option available to workers that survive the digital thought that there was the need purchases and upward pressure of lending rather than increase staff based on their roles. 12.5� of ap ro contraction the economy, g re s s i o n ,of t hey h ave to forrate detailed guidelines from the the confirmed prices of some goodshave as against its in response to inflation – on target upgrade government’s their skills to remain banks that they government BankinofAugust, Ghana aalready resultbegun of pandemic-related which, at 10.5and percent relevant. and will continue of 0.9 percent growth, it will on remains the implement ation of restrictions andjob shortages. to realign the roles and work incorporate the latest GSS data still outside the bank’s measures put in place to curb the “Inflation will moderate in into its next forecast update. 6-10 percent target. impact of the pandemic. “Although inflation is currently 2021, to 8.3 percent, owing to Meanwhile, the Economics In their clear guidance above the view, 6-10 percent target less disruption to supply chains Research wing of Goldman Sachs, was missing, andthat though this while domestic demand remains a global financial institution, band, we believe the BoG c o umaintain l d b e rates s h a rate the d d u r i n g weak. From 2022 we expect has revised its prediction of a will current stakeholder consultation, they level (rather than hiking rates in a inflation to pick up as a result of contraction of the Ghanaian could not fully embed the new bid to stem inflation) as economic higher global commodity prices, economy in 2020. In its revised policies declines in operational activity and thestrategy BoG ongoing currency depreciation forecast published last week, it without a detailed documented and strengthening domestic said it sees Ghana’s pandemicseeks to boost access to credit to directive. support businesses,” the EIU said. demand,” the EIU said. hit economy growing at a rate of Inflation, according to the 1.2 WITH ADVERTISE Consumer price index inflation percentUS this year, following Post-pandemic banking TEL: 8.9 +233 024 climbed into the double digits in firm’s forecasts, will average a 212 2742 stronger-than-anticipated April – the first time since June percent in 2022-24, remaining performance from some key When by the audit firm within the official target range of sectors of the economy in the www.thebusiness24online.net 2018 – asasked the pandemic drove about how the pandemic� s up prices. Inflation reached 11.4 6-10 percent. second quarter.

No room for further policy rate cuts in 2020—EIU

MONDAY SEPTEMBER 28, 2020

Gov’t scores a victory in IPP talks, but more battles loom Continued from cover Under the new terms, CEL, which is owned by the Social Security and National Insurance Trust (SSNIT) through a special purpose investment vehicle, has agreed to convert its PPA into a tolling structure and to transfer all resulting cost savings to its power purchaser, the Electricity Company of Ghana (ECG). A tolling agreement, as generally used in the global energy industry, means the government or ECG would provide fuel to CEL’s power plant and also determine the amount of power to be produced, while CEL retains operational control of the plant. In addition, the government said CEL has agreed to a further reduction in its capital recovery tariff of 38.9 percent, resulting in total savings to the state of more than US$200m over the remaining life of the PPA. Since 2019, the government has been holding talks with about 12 IPPs in the energy sector in a bid to convert their PPAs, which are based on takeor-pay terms, to terms which

Ken Ofori-Atta leads government’s quest to ease the burden power purchasing agreements place on meagre resources

are less costly for ECG and government. This was after the Finance Minister, Ken Ofori-Atta, revealed that the government pays over US$500m a year for unused electricity, arising from take-or-pay PPAs which oblige the government to pay for power produced by IPPs irrespective of need or demand. Most of the PPAs were signed during the previous administration amid a protracted power crisis that the then government was keen to resolve. According to the Ministry of Finance, the tariffs agreed in those PPAs were not competitive and have

contributed significantly to the build-up of debt and oversupply of power in the energy sector. “The commitment made by CEL is crucial in reinforcing government’s efforts to build a balanced and sustainable energy sector,” said a press statement on Friday from the Ministry of Finance. “The terms agreed to between government and CEL will produce a more favourable situation for both parties and ultimately reduce the cost of electricity for the people of Ghana,” the statement added. The statement encouraged other IPPs to emulate CENIT in helping government reduce

the debt hangover in the energy sector. However, signals given by the IPPs suggest the government would not have it easy in renegotiating the other PPAs. Just last week, a report in the press said the IPPs had threatened to shut their plants by the end of September if the government failed to clear debts owed them. The PPA renegotiations are being done as part of the Energy Sector Recovery Programme (ESRP), which is a five-year reform plan aimed at restoring the financial sustainability of Ghana’s energy sector. The government said it has demonstrated its commitment to the ESRP by actively developing whole-of-sector initiatives and reforms, including implementing the Cash Waterfall Mechanism (CWM) in April 2020, which allows ECG’s revenues to be distributed in a more transparent manner, and managing payments of arrears despite the challenging fiscal situation that has been exacerbated by the COVID-19 pandemic.

Works to begin on three airstrips Continued from cover After visits to the Kete-Krachi, Mole, Navrongo and Yendi airstrips by the Aviation Minister and technical persons from the Ghana Civil Aviation Authority (GCAA), the three locations were found most suitable to be immediately revamped. This is because the airstrips were found intact with little or no encroachment, had enough space for the extension of the runway’s length and width, and the traditional rulers and opinion leaders of the area were supportive and willing to help government secure the sites. The Yendi and Navrongo airstrips, for instance, have been in existence since 1940 and were used as strategic airstrips by the National Guard which defended part of the country’s northern border during the Second World War. The Yendi airstrip has a length of 1,500 metres and has enough land for the runway to be

extended, and the current width extended to 300-150 metres on each side of the runway. Aviation Minister Joseph Kofi Adda told Busines24 in Yendi that: “The President has directed us to construct as many airports and airstrips as possible to boost business and improve tourism. “The Yendi airstrip has been in existence since the 1940s. Fortunately, the encroachment is not too much. There is still a lot of land for us to expand the width by 150 metres on each side. We will have to add 300 metres to the existing 1,500 metre-long runway to bring it up to 1,800 metres. A double seal of the runway will also be done so that light passenger aircraft can safely operate to Yendi. “This is something that can be done in a month or two for us to open up the Eastern side of Dagbon.” A visit by Business24 to the Navrongo airstrip showed that the decades-old airstrip is still intact, well compacted and used frequently by the Ghana

Air Force. It currently measures 1,500 metres long and 24 metres wide. On the development of the airstrips, the Minister stated: “Designs have been done, feasibility completed, funding has been secured, and we are waiting for the signing of the commercial agreement. The sponsors have

come with funds to show what they have available and the Minister for Finance has looked at it and it’s fairly reasonable to us. So we are waiting for the approval from the Finance Ministry to say whether it fits into their financial framework; that’s what we are waiting for to proceed.”

MONDAY SEPTEMBER 28, 2020

News

MONDAY SEPTEMBER 28, 2020

UNDP, UNGC, ICC Support Ghana’s Economy

hana has been selected among only four initial countries across the world to receive financial support from the COVID-19 Private Sector Global Facility, established by the United Nations Development Programme (UNDP), the United Nations Global Compact (UN Global Compact) and the International Chamber of Commerce (ICC). The other beneficiary countries Colombia, the Philippines and Turkey. This was announced by UNDP Administrator, Achim Steiner at the SDG Business Forum during the UN General Assembly last week, the largest and most inclusive UN convening of private sector leaders, under the motto “Recover Better Together”. The COVID-19 Private Sector Global Facility is a global initiative and a collaboration bringing together public and private sector partners to help local communities recover better from the pandemic. It is a response to corporate calls to action for private sector leaders and governments to work together to address the negative impacts of the coronavirus pandemic. Emmanuel Doni-Kwame, Secretary-General of ICC Ghana in a statement said: “The pandemic has radically changed the lives of entrepreneurs and their countries economic environment, especially in Africa. As the focus is on Ghana, we are ready to support scale-up this global impact initiative to help redefine the future of business”.

authorities, cities and regional governments. By unlocking public-private and private-private cooperation for a sustainable response to COVID-19 challenges, it is possible to recover better and build more resilient economies”. He said the Facility is the first of its kind, designed to join forces across public and private sectors to serve humanity in an imperative moment, adding “Solidarity to ‘Recover Better Together’ can boost our collective efforts not only to cope with the crisis but overcome it. UNDP’s footprint across some 170 countries and territories, combined with the UN Global Compact’s network of more than 10,000 companies and 68 Local Networks around the world, and the International Chamber of Commerce’s network of over 45 million companies, multiplies our collective capacity and potential”. Private sector involvement

Ms Valentina Mintah ICC Executive Board Member said “The Global Facility will provide practical support for the real economy, delivered through incountry projects targeted at the needs of SMEs. “These will range from digital skills training to the delivery of major infrastructure projects. Ghana’s inclusion in the initial 4 participating countries serves as a solid foundation for Africa, as the geographical scope expands and the Facility develops.” In a video recording message played at the SDG Business Forum during the UN General Assembly, Ms Mintah said: “Small business

owners and entrepreneurs want to have their challenges understood, their ideas heard, and their efforts to recover better recognised and built upon by others. SMEs need a way to facilitate this vital exchange of ideas, learning and experience with each other and with organizations and institutions in a position to support them”. Mr. Achim Steiner said “As COVID-19 disrupts societies, development agendas must adjust accordingly. There is a need for inclusive multilateralism, drawing on the critical contributions of civil society, business, foundations, the research community, local

The COVID-19 Private Sector Global Facility is supported by strategic partners DHL, Microsoft and PwC, and is open for other like-minded private sector organizations that want to join the initiative. The strategic partners are expected to add their expertise and technology to support this transformational recovery. The Global Facility will operate at both the global and national levels. It aims to cocreate solutions that are tailored to the phase of the COVID-19 pandemic in each area and the specificities of the local private sector and government context. The geographical scope and participating partners are expected to expand as the Global Facility develops.

FBN Bank outdoors agent banking channel

BN Bank has officially launched its agent-banking channel as part of the bank’s strategy to increase access to financial services and improve financial inclusion in the country. Speaking at the outdooring ceremony, the Chief Executive Officer of the bank, Victor Yaw Asante, said the bank has leveraged new and evolving technologies to broaden the opportunities and provide convenient and affordable access to everyday financial products to the bank’s customers. “The lack of access and usage of financial services by the majority of the population impede their ability to contribute to the economy as they are not able to accumulate capital or access

credit for production and consumption purposes,” he said. According to Mr. Asante, this underscored the importance of financial inclusion as a socio-economic development tool. He said financial inclusion has emerged strongly as a topical issue among policymakers, development practitioners and the private sector who recognize it as an enabler of attaining the United Nations’ Sustainable Development goals (SDGs). “It is against this background that Ghana is among the countries leading the drive to expand financial inclusion by leveraging digital solutions. He assured the bank’s customers that the bank will use its agent banking channel to in-

crease access to financial services and improve financial inclusion in line with the national agenda. He said the bank will work with its network of agents to present a convenient and comfortable alternative for customers that require simple and easy to use digital channels across the country. “Our agent banking project will go along with continuous innovation and a roll-out of new and improved electronic ways that will allow many users to carry out several transactions within their communities at FBN Bank agent locations,” Mr. Asante added. He said with the launch of it parent bank’s, First Bank Nigeria, agent banking channel in

2017, First Bank has been able to indirectly create over 150,000 jobs as the Firstmonie Agents have had to employ the services of other individuals to build their businesses and meet the financial needs of individuals in the communities. “As a customer-focused bank that puts you first, this is one more way by which we bring our services ever closer to you with an easy and convenient way of banking Indeed, our branches are well-positioned to facilitate the work of the FBN Bank agents and our customers should expect quality service from the agent locations just like when they walk into any of our banking halls,” he added.

MONDAY SEPTEMBER 28, 2020

News

MONDAY SEPTEMBER 28, 2020

Qatar Airways to stir competition with 4x weekly flights Continued from cover The entry of the Doha-based airline will offer passengers more travelling options and stir competition in a market where demand has been dampened by the outbreak of the COVID-19 pandemic and where airlines are gradually resuming operations with reduced frequencies. The airline’s entry has been long in coming. It was initially expected to start operations in Ghana in 2018 but postponed its start to January this year. After opening its system for ticket sales in January, there was significant demand for tickets. However, the onset of the COVID-19 pandemic and its associated widespread country border closures derailed its plans. With Ghana and Nigeria reopening their international airports for scheduled flights, the Gulf carrier is all set to commence operations. Passengers travelling to the Middle East, Far East and South East Asian countries are expected to benefit from competitive fares – given the anticipated competition between Qatar, Emirates and Addis Ababa-based Ethiopian Airlines. For starters, Qatar Airways will operate four weekly flights between Accra and Doha via

Lagos, Nigeria. It has announced a promotional fare starting at US$895. Passengers must, however, book by October 5, 2020 for travel until March 31, 2021. “We are proud to be the leading global airline connecting passengers with the world, operating one of the youngest and most efficient and sustainable fleets to take people safely where they need to be,” Qatar said in a

statement. Local partnership & employment Meanwhile, Ghana-based regional and domestic carrier Africa World Airlines (AWA) has struck a deal with Qatar that will open up new destinations in the West Africa sub-region for Qatar Airways passengers. The one-way interline

agreement will allow Qatar customers to connect onto regional and domestic routes serviced by AWA such as Lagos, Abuja, Abidjan, Freetown, Monrovia, Kumasi, Takoradi and Tamale. Qatar, which has a local office at the Movenpick Ambassador Hotel in the heart of Accra, has employed Ghanaians as managers and cabin crew.

Webster University Ghana set to discuss upcoming presidential elections in USA and Ghana

ebster Ghana takes its famed signature Public Lecture online and will tackle the well-timed topic, “Presidential Elections 2020! What is at Stake in the USA and Ghana?” This will be the university’s 18th Public Lecture – an academic panel event series that serves as a means for the higher education institution to give back by engaging brilliant thought leaders around various issues of relevant and sparking solutions-based conversations for change among citizens. This upcoming virtual session comes off on Wednesday, September 30th, 2020 at 5:30 pm and will feature popular political pundit, Dr. Seidu Alidu and Webster Ghana faculty, Prof. Jean-Germain Gros joining from their home campus in St. Louis,

Missouri. Presidential elections in the USA and Ghana will take place this November and December, respectively. With the two incumbents, Donald J. Trump and Nana Akufo-Addo, running on some of the most critical issues of the 21st century, these elections foreshadow how the remaining decades of this century may evolve. First and foremost, the handling of one of the greatest public health crises in the history of the world, COVID-19, is clearly at stake. The humongous impact COVID-19 has had, and continues to have, on the economies of these two countries, and the specific policies needed to mitigate the damage caused, is of critical importance to all voters in these elections.

The issue of voter turnout— from cleaning the voter’s registrar to actual voter suppression— continues to occupy the attention of citizens in both nations, and could have a huge impact on the final results of both elections. And finally, no less significant for ‘Elections 2020’ is the historically rare occurrence of prospective female vice presidents—Kamala Harris, the third ever in the US, and Nana Jane Opoku-Agyemang, Ghana’ first ever—running alongside male presidential contenders from major parties in each country. Will gender have a major impact on these two elections? The distinguished speakers, Professor Gros and Dr. Seidu Alidu will dissect these issues and more, presenting perspectives from the USA and Ghana, respectively. This lively discussion will be

the university’s first-ever virtual public lecture, moving away from the conventional in-person event that normally takes place at their modern campus at Lagos Avenue, East Legon. Webster University is an American college with campuses in 9 countries globally and a mission is to ensure a high quality learning experience that transforms students for global citizenship and individual excellence. The Ghana campus opened in 2014 and offers both undergraduate and Master’s degree programs. Webster Ghana students have the opportunity to study abroad due to the school’s international network of campuses. Interested persons can visit https://bit.ly/ WebsterGHVirtualPL93020 for more details and to register for this no-cost event.

MONDAY SEPTEMBER 28, 2020

Feature

MONDAY SEPTEMBER 28, 2020

Shout loud and proud about your business the key to successful networking; at BforB we meet every other week, because so many business people told us the weekly commitment of some organisations was too much to keep up with, and that fortnightly far better fits in with their busy schedule. Attendance breeds familiarity, which in turn develops confidence, and ultimately leads to referrals. And if you enjoy your networking, and make friends and business contacts while doing so, then happy days! We may be biased, but we believe the BforB format is the perfect way to achieve this. Remember: you might offer an awesome service, you may have far more to offer than your competitors. But if you don’t shout about your business, then nobody will know about you!

…… and if you do so consistently, then networking will become very rewarding!

hen your goal is to run a successful business, the best advice you will ever get is that you go out networking. It is, or should be, a key part of any marketing strategy. The simple fact is this: if you don’t promote your business, nobody else will. But not everyone is comfortable mingling among people they have never met, and even less so, standing before an audience, and talking about what they do. Some people would rather opt for having a tooth out than speaking in public. But with support and confidence, it is amazing to see the transformation of a first-time networker into an accomplished one. At Business for Breakfast (BforB) meetings, we totally understand the uncertainty of a first-time guest new to the networking scene, and find it totally rewarding when people sign up to one of our groups, and we see them grow in confidence week by week. Sure, there are those who prefer the comfort of social media marketing to attending networking events, but in recent research carried out by Virgin, 85% or respondents said they prefer face-to-face inter-actions as it

builds stronger, more meaningful business relationships. Hence the importance of going out to network! So how do you make the most of your networking, and how do you ensure that it works for you? First of all, we recommend that you find a networking group that works for you. At BforB we take pride in not only welcoming new networkers, but offering them support, encouragement, and friendship. Some take to it like the proverbial duck to water, others find it initially intimidating. But if you attend regularly, then trust us, you will actually start to enjoy it! Networking is about getting to know people, making connections, building relationships, educating people about your business, letting them know who you may be looking to make contact with, and ultimately giving your fellow networkers the confidence to recommend you to the people they meet day in, day out. As one of our BforB members said only recently: “Supporting people new to networking is so rewarding, and it is worth remembering how much knowledge is around the room at one of our meetings, and from

that knowledge there is a lot of great advice to be given out.” Indeed, one member, who set up on his own about 5 months ago as a Creative Director, has increased his business in a year after joining BforB, and now has a great working relationship with in the group. Relationships like those develop from the meetings, and also by arranging 1-2-1 meet-ups outside of the fortnightly BforB meetings. We encourage those 1-21s, because you get to know fellow networkers in a more personal setting, develop friendships, and most importantly you find out much more about each other’s businesses to the point that you can then refer with great confidence. At BforB, our meetings are structured, but with an informal atmosphere around the room; and in such an environment, business is being passed around the room, and referrals being given and received. That’s when networking becomes both rewarding and fulfilling, and it is achieved over a period of time, rather than simply by attending a first meeting. To summarise: consistency is

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MONDAY SEPTEMBER 28, 2020

The Vise Tightens on the Dollar By Stephen S. Roach

he US dollar has now entered the early stages of what looks to be a sharp descent. The dollar’s real effective exchange rate (REER) fell 4.3% in the four months ending in August. The decline has been even steeper as measured by other indexes, but the REER is what matters most for trade, competitiveness, inflation, and monetary policy. To be sure, the recent pullback only partly reverses the nearly 7% surge from February to April. During that period, the dollar benefited from the flight to safety triggered by the “sudden stop” in the global economy and world financial markets arising from the COVID-19 lockdown. Even with the recent modest correction, the greenback remains the most overvalued major currency in the world, with the REER still 34% above its July 2011 low. I continue to expect this broad dollar index to plunge by as much as 35% by the end of 2021. This reflects three considerations: rapid deterioration in US macroeconomic imbalances, the ascendancy of the euro and the renminbi as viable alternatives, and the end of that special aura of American exceptionalism that has given the dollar Teflon-like resilience for most of the post-World War II era. The first factor – America’s mounting imbalances – is now playing out in real time with a vengeance. The confluence of an unprecedented erosion of domestic saving and the current-account deficit – joined at the hip through arithmetic accounting identities – is nothing short of staggering. The net national saving rate, which measures the combined depreciation-adjusted saving of businesses, households, and the government sector, plunged into negative territory at -1% in the second quarter of 2020. That had not happened since the global financial crisis of 2008-09, when net national saving fell into negative territory for nine consecutive quarters, averaging -1.7% from the second quarter of 2008 to the second quarter of 2010.

But the most important aspect of this development was the speed of the collapse. At -1% in the second quarter, the net saving rate fell fully 3.9 percentage points from the pre-COVID 2.9% reading in the first quarter. This is, by far, the sharpest one-quarter plunge in domestic saving on record, dating back to 1947. What has triggered this unprecedented collapse in net domestic saving is no secret. COVID-19 sparked a temporary surge in personal saving that has been more than outweighed by a record expansion in the federal budget deficit. The Coronavirus Aid, Relief, and Economic Security (CARES) Act featured $1,200 relief checks to most Americans, as well as a sharp expansion of unemployment insurance benefits, both of which boosted the personal saving rate to an unheard of 33.7% in April. Absent these one-off injections, the personal saving rate quickly receded to a stilllofty 17.8% in July and is set to fall even more sharply with the recent expiration of expanded unemployment benefits. Offsetting this was a $4.5 trillion annualized widening of the federal deficit in the second quarter of 2020 (on a net saving basis), to $5.7 trillion, which swamped the $3.1 trillion surge in net personal saving in the same period. With personal saving likely to recede sharply in the months ahead and the federal budget deficit exploding toward 16% of GDP in the current fiscal year, according to the Congressional Budget Office, the plunge in net domestic saving in the second quarter of 2020 is only a hint

of what lies ahead. This will trigger a collapse in the US current-account deficit. Lacking in saving and wanting to invest and grow, the US must import surplus saving from abroad and run massive external deficits to attract foreign capital. Again, this is not esoteric economic theory – just a simple balance-ofpayments accounting identity. The validity of this linkage was, in fact, confirmed by the recent release of US international transactions statistics for the second quarter of 2020. Reflecting the plunge in domestic saving, the current-account deficit widened to 3.5% of GDP – the worst since the 4.3% deficit in the fourth quarter of 2008 during the global financial crisis. Like the saving collapse, the current-account dynamic is unfolding in an equally ferocious fashion. Relative to the 2.1%-of-GDP currentaccount deficit in the first period of 2020, the 1.4-percentage-point widening in the second quarter was the largest quarterly deterioration on record (dating back to 1960). With the net domestic saving rate likely headed into record depths of between -5% and -10% of national income, I fully expect the currentaccount deficit to break its previous record of 6.3% of GDP, recorded in the fourth quarter of 2005. Driven by the explosive surge in the federal budget deficit this year and next, the collapse of domestic saving and the current-account implosion should unfold at near-lightning speed.

It is not just rapidly destabilizing saving and current-account imbalances that are putting downward pressure on the dollar. A shift in the Federal Reserve’s policy strategy is a new and important ingredient in the mix. By moving to an approach that now targets average inflation, the Fed is sending an important message: zero-interest rates are likely to persist for longer than previously thought, regardless of any temporary overshoots of the 2% price stability target. This new bias toward monetary accommodation effectively closes off an important option – upward adjustments to interest rates – that has long tempered currency declines in most economies. By default, that puts even more pressure on the falling dollar as the escape valve from America’s rapidly deteriorating macroeconomic imbalances. In short, the vise is tightening on a still-overvalued dollar. Domestic saving is now plunging as never before, and the current-account balance is following suit. Don’t expect the Fed, focused more on supporting equity and bond markets than on leaning against inflation, to save the day. The dollar’s decline has only just begun. Stephen S. Roach is a faculty member at Yale University and the author of Unbalanced: The Codependency of America and China. Copyright: Project Syndicate, 2020. www.project-syndicate.org.

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MONDAY SEPTEMBER 28, 2020

Policy actions for the future of work By Africa Center for Economic Transformation (ACET)

African policymakers face a daunting challenge in designing skills strategies that support transformation goals while also producing a resilient, adaptable workforce for the future. These recommendations offer a path forward.

varies considerably across the continent. For example, countries with very low basic education attainment and fragile economies may place a much higher weight on improving basic education access and quality rather than investing in upper secondary and higher education. Countries that have progressed further on basic education attainment and have more stable policy environments may place a higher weight on investing in upper secondary and TVET to help propel employment and spur transformation. Meanwhile, countries that are already in the more advanced stages of transformation may focus on resiliency, or ensuring their workers have access to the tools and knowledge they need to adapt to structural and technological change. In general, however, most countries considering reforms to better prepare young Africans for future work can orient their contextspecific policies around two core strategic aims: first, Improving early education access and outcomes; and second, improving secondary education and TVET skills development. Specific policy objectives and measures to support these strategic aims are described below.

mproving the quality of learning in general secondary education and technical and vocational education training (TVET) systems will require massive reforms in most African countries. These reforms will also need to extend beyond the secondary phase, particularly to include pre-primary and primary education, to strengthen the foundational skills that underpin successful learning outcomes—and lead to productive work. They also need to reflect the reality that transformation will take time, and so most young Africans will need 1. Improve to generate their own and relevance productive opportunities, education especially in the informal sector. Expanding upper Improving secondary education without and relevance a commensurate increase in labor demand and number of productive opportunities for the self-employed and entrepreneurs risks higher youth unemployment and underemployment as secondary graduates will just displace workers with lower skills, rather than help create additional jobs. For most African governments, limited budgets and strained resources mean difficult investment tradeoffs will need to be made between different groups. The relative weight placed on those trade-offs, as well as the accompanying education policy priorities, will depend on a country’s cultural, political and geographic context, which

education is crucial to ensure young people stay in school and obtain the skills they need for productive work. It requires policy action on many fronts, particularly in relation to improving learning materials, teacher effectiveness, national standards, and STEM uptake. • Improve the availability and quality of learning materials. Many African countries face severe shortages in textbooks and learning materials, even in core subjects, often due to insufficient financing to cover high costs—which are a byproduct of poor governance and ineffective procurement. Fixes to these structural shortcomings should also be accompanied by a push to modernize learning materials through increased reliance on technology and by integrating digital content into curricula. Governments should also consider public-private partnerships to share costs and help shape curriculum strategies.

as manageable class sizes and basic services), and stronger accountability and teacher incentives, which will require strong dialogues between officials and teacher unions. • Devise flexible and relevant national frameworks. A National Qualifications Framework (NQF) can be a useful tool in education and training reforms and provide vital reference points for ensuring students learn relevant skills that reflect a country’s socioeconomic and labor market needs. NQFs should aim to address gender equality, link to clear career pathways, and encompass both the TVET and general education system. Effective coordination of NQFs at a regional and subregional level can also facilitate labor mobility and increase job prospects for youth. • Improve STEM uptake. A significant shift in STEMrelated learning—that is, subjects in the fields of science, technology, engineering, and mathematics—will require clear targets, matched by necessary resources and incentives for providers and students. Examples include addressing the shortage of qualified STEM teachers, ensuring STEM curricula is relevant and engaging, and ensuring resources align with STEM targets alongside accountability systems.

• Improve the quality of teaching. Governments must prioritize teacher management to ensure lasting improvements to education quality. This involves recruiting highpotential teachers and giving them the support they need to teach effectively and grow the quality professionally so that they stay of secondary in the education field. Some key areas to address include stronger pre- and in-service the quality teacher training, improved of secondary learning environments (such CONTINUED ON PAGE 15

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from education budgets.

CONTINUED FROM PAGE 13 2. Increase access secondary education

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Strong progress has been made in ensuring Africa’s youth have access to primary education, but access to secondary is still a major challenge for many reasons. Excessive travel distances, particularly in rural areas Countries should prioritize where children often must travel further to get to school, improving the quality and are one significant impediment. relevance of TVET systems better tracking, Financial costs, such  as through uniforms or the opportunity more effective trainers, and cost of helping at home, also demand-driven curricular for increase the likelihood that key growth sectors, including students, especially from the informal sector, with poor households, don’t attend explicit industry linkages. The school. In many countries, temptation to rapidly scale up early marriage or pregnancy provision while implementing also prevents young girls from large system scale reform attending school. Furthermore, should be avoided because access has historically been TVET is relatively expensive limited to a privileged few, to deliver, reforms are often with high-stakes examinations complex and take time to serving as a winnowing device implement, and the evidence that limits progression through on what works in a particular the education system for many country isn’t that clear. young people. • Track TVET from upper • Address supply side secondary. Students need a constraints. The most obvious good set of foundational skills and immediate measure to before they start learning more increase access is to increase advanced, technical skills. opportunities to learn by That means tracking TVET building new schools nearer from upper secondary schools pupil population centers, so students start only after particularly in rural areas. they have developed necessary Demand for secondary skills through basic education. education in Sub-Saharan • Improve the quality Africa is expected to nearly double by 2030; supply must of TVET trainers. Highquality TVET trainers are in increase concurrently. short supply. Several policy • Address demand side measures can be enacted to constraints. For existing help attract and retain qualified facilities, ensuring a safe and trainers, including: creating healthy learning environment clear and flexible pathways is essential for attracting and for becoming a TVET trainer retaining children, particularly (with commensurate salaries); girls. Removing high stakes developing progression routes exams in favor of improved within the profession for classroom assessments   for career growth; implementing certification purposes can a consistent training protocol improve transition rates to ensure skills are current between primary and lower and relevant; and enacting competence secondary—but they should minimum be replaced by improved standards. classroom assessments. • Ensure TVET is relevant And stackable, or modular courses—where students don’t and demand driven. Close have to complete modules and continuous engagement straight after one another— between policymakers and could encourage completion the private sector is necessary rates for TVET students who to jointly agree on standards are working or have additional and curricula that meet the responsibilities outside school. needs of the formal sector— and as much as possible, the 3. Improve the quality and informal sector as well. In particular, curricula should relevance of TVET

• Seek smart solutions to lower costs. Building new infrastructure is particularly expensive, but alternative measures such as adding new classrooms to existing primary or secondary schools or teaching in shifts (if accompanied by monitoring and evaluation plans to ensure quality) can help lower costs in the face of increased include entrepreneurship demand. Other potential and business skills training measures include establishing and not force students into virtual science labs in schools, narrow specializations so replacing boarding schools they are better able to adapt with less costly day schools to changing labor markets. closer to student populations, However, private sector relying on multi-skilled engagement takes effort. Many teachers to teach several countries, including India, subjects while streamlining the have struggled to get industry curriculum, and engaging the sufficiently involved in skills private sector to help provide development. Research shows capacity. that employers need to fully understand the benefits of • Establish effective creating a demand-led system— accountability systems. and their role in delivering it— Credible education plans, for them to engage effectively.   transparent budgets with clear responsibilities, and 4. Improve the value of independent auditing education spending procedures help hold governments to account, while Universal secondary clear and sensible regulations education is a key component with monitoring mechanisms of a prosperous, equitable are needed to support quality society, yielding returns at improvement measures. both the societal level—in Successful implementation terms of economic growth— of accountability systems and at the individual level in requires information to be terms of higher wages. But transparent, timely, relevant, substantial financial resources and available to decision are needed to reach nearly makers. universal enrolment in lower and upper secondary schools • Ensure capacity in Sub-Saharan Africa—$175 and political commitment. billion per year between now Political will to realize the and 2050, according to an scale of the reforms, as August 2020 report from the well as prioritize and make Mastercard Foundation. That difficult decisions between figure dwarfs the approximate different population groups $25 billion spent in 2015. and sectors, is paramount. Governments also need to In most countries, education build capacity for evidencespending will need to increase based policies that consider to achieve universal access but cost effectiveness and create also to keep current primary incentives to align behavior and secondary enrolment rates of stakeholders towards constant amid rising demand, achieving skills development improve lower secondary objectives. Finally, better completion rates, and improve coordination of responsibilities the overall quality of learning. and accountabilities within Given near and medium-term and between government forecasts for relatively weak ministries and agencies  is economic growth—especially needed in most countries. in light of the COVID-19 pandemic—and the changing dynamic of global development This article is part of the ACET assistance, countries will need In-Depth Series Schools, Skills to rely on improved domestic & Jobs. Also see: resource mobilization efforts Overview | Part 1 | Part 2 | Part 3 and more efficient operations | Part 4 as ways to achieve better value

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Survival of NPOs – saving a weakened sector

were left wondering where the support to ensure their survival would come from. “As a result, something fundamental in the fabric of our society is being tested – the social contract that exists between NPO’s as project implementers, and business and government as suppliers of resources and grants. Traditionally this contract has been maintained through the moral agency of NPOs and their willingness to act at a cost well below what the market and government would deem viable for themselves. “But this is now under threat as businesses across the country are suffering losses they had not anticipated, and invariably their support to NPOs will be curtailed. “Self-preservation is an undeniable approach for businesses but must not be overtaken with self-interest.” So, why should business and government care what happens to the sector?

ith the impact of COVID-19 rippling through the economy with disastrous effect, the livelihoods of non-profit organisations (NPOs) are under threat at the same time as demand for their support services is rapidly escalating. Dr. Armand Bam, Head of Social Impact at the University of Stellenbosch Business School (USB) says a world without NPOs is “unimaginable and untenable, particularly when we need to address issues of social justice and socio-economic inclusion”. “The principles of dignity, equality and freedom to participate in all aspects of our society, as enshrined in the African Constitution, are under threat. We live in the most unequal society in the world and the COVID-19 pandemic will do much to entrench this divide. “We are pro-active as a nation when it comes to developing policies for upliftment, but we struggle to implement, monitor and hold to account the efficacy of these policies. While businesses act as suppliers of resources and government as a protector, it is NPO’s that are the proverbial glue that binds us and ensures delivery

of social justice goals,” he said. Along with the ups and downs of global and local markets and ratings downgrades, COVID-19 will further contribute to a rapid contraction in employment opportunities. “The socio-economic inclusion of many citizens in our economy is already under threat and the coordinated effort

“

The resilience expected of the NPO sector and their ‘do good nature’ has been impacted in a similar manner to the private sector. Social distancing has played a role here. It is time for businesses and government to join hands with NPO’s and treat them not as beneficiaries but as part of transformational partnerships that move beyond the transactional.”

between institutions and policies influencing productivity within our economy has been hit hard by the extended period of lockdown. Products and services from Africa are less attractive than those in 59 other countries (The Global Competitiveness Report 2019) and as a result there will be less money available from the government through its tax collection efforts to support NPOs and promote socio-economic inclusion and justice for its citizens.” He argues that since we live in a society, not in an economy, businesses and government should pay attention to what happens with the non-profit sector. “Non-profits contribute to many African countries’ economies, yet we fail to recognise the multiple roles they play, especially that of intermediaries. Together with government and business these organisations empower citizens and contribute much needed skills and infrastructure - the building blocks of any economy.” Dr. Bam said that “the new normal” had thrust NPOs into a crisis where expectations to deliver support to citizens and communities were escalating during lockdown, while many

“NPOs are important for upholding and ensuring democracy and social justice. Their recognition as a key partner alongside the public and private sectors must be acknowledged and supported. We need to ensure that the social contract that exists is maintained. Failure to safeguard this will inevitably destabilise our democracy. “The resilience expected of the NPO sector and their ‘do good nature’ has been impacted in a similar manner to the private sector. Social distancing has played a role here. It is time for businesses and government to join hands with NPO’s and treat them not as beneficiaries but as part of transformational partnerships that move beyond the transactional.” Dr Bam concludes by saying that business and government should include NPOs in a proactive and participatory way as we shape a post COVID-19 Africa. “For this to occur we need to recognise the leadership roles NPOs can play in order to achieve goals which were not achievable before.”

Dr. Armand Bam, Head of Social Impact, University of Stellenbosch Business School

MONDAY SEPTEMBER 28, 2020

Aviation

MONDAY SEPTEMBER 28, 2020

American Airlines to get US$5.5b loan from US Treasury

merican Airlines has agreed to a US$5.5 billion (RM22.9 billion) loan from the US Treasury as it aims to ride out the downturn caused by the coronavirus, the carrier announced yesterday.

The airline, which has said it could lay off as many as 19,000 employees next month without another relief package from Congress, said the financing will “help us shore up our longerterm liquidity until demand

returns,” according to a message to employees. The loan, authorised as part of the massive CARES Act federal relief package passed this spring, adds to American’s mounting debt level, which is higher than

that of other leading US carriers. The Treasury Department told the carrier that the loan could be boosted to as much as US$7.5 billion, “although such amount is subject to final approval by the Treasury,” American said in a securities filing The CARES Act also provided US$25 billion in Payroll Support Program (PSP) funds for US carriers, including US$5.8 billion to American. US airlines that took PSP funds committed to not undertaking any involuntary job cuts through the end of September. American has said it could lay off 19,000 workers starting in October if there is not a new relief package. Airline CEOs visited the White House on September 17 to lobby for such legislation, but talks in Congress have stalled amid intensifying partisanship ahead of the November presidential election. - AFP

Airlink airline restarting regional operations other regional routes in the near in early October

UAE to resume issuing visas to foreign visitors

he United Arab Emirates will resume issuing visas to foreign visitors to all seven of its regions as of Thursday after a six-month suspension imposed due to the coronavirus pandemic, state media reported. Dubai, the region’s tourism and business hub and one of the seven emirates that make up the UAE, had already lifted its own visa ban in July. The Federal Authority for Identity and Citizenship said in a statement carried in state media that the decision was taken as part of the easing of COVID-19 restrictions in the Gulf

state as well as efforts to support economic recovery plans. All six Gulf Arab countries have lifted internal curfews and lockdowns, but restrictions on gatherings and foreign travel remain in the oil-producing region, where the total number of COVID cases stands at over 800,000, with more than 6,800 deaths. Neighbouring Oman said on Thursday it would resume scheduled international flights on Oct. 1 with strict measures to protect the country and aviation staff from the virus. (Source: Reuters)

outh African private-sector airline Airlink has announced that it will start phasing back in its regional flight network, with effect from October 5. It also announced that it will soon institute a new regional route, to Mozambique. On October 5 the airline will restart operations between Johannesburg and Harare, Zimbabwe. The flight will be daily, leaving Johannesburg at 10h30 and arriving at Harare at 12h10, with the return flight departing the Zimbabwean capital at 12h40 and landing at Johannesburg at 14h35. On October 12 Airlink will restart operations on eight other regional routes. This will be Johannesburg/Bulawayo (Zimbabwe), Johannesburg/ Lusaka and Johannesburg/Ndola (both in Zambia), Johannesburg/ Walvis Bay and Cape Town/ Windhoek (both in Namibia), as well as Johannesburg/ Beira, Johannesburg/Pemba and Johannesburg/Tete (all in Mozambique). The new route to Mozambique will also be inaugurated on October 12. It will be Johannesburg/Maputo, and will operate on Wednesdays and Fridays. The flight will leave Johannesburg at 13h45 and land at Maputo at 14h40, with the return flight leaving Maputo at 15h15 and arriving at Johannesburg at 16h25. The company hoped to be able to make announcements on

future. From Johannesburg, the routes concerned were those to Windhoek, Entebbe (Uganda), Dar es Salaam (Tanzania), Luanda (Angola), Lubumbashi (Democratic Republic of Congo), Gaborone (Botswana), Maun (also Botswana), Kasane (again in Botswana), Antananarivo (Madagascar), Nosy Be (also Madagascar), Vilanculos (Mozambique), Maseru (Lesotho), Manzini (eSwatini) and Livingston (Zambia). The routes from Cape Town were those to Victoria Falls (Zimbabwe) and Maun. “Airlink knows that for our customers traveling during these stressful Covid pandemic induced [sic] times, personal safety is a major consideration,” assured the airline. “Safety and well-being – yours an ours – remain our primary concern. Our aircraft are equipped with High Efficiency Particulate Air Filters, which are effective at blocking 99.97% of particulates, including Coronavirus molecules. These filters help to continually sterilise the air in our cabins, which is renewed every three minutes.” The airline also highlighted that all passengers must comply with government regulations aimed at combatting the spread of Covid-19. In particular, those coming to South Africa must present a negative Polymerase Chain Reaction test certificate, obtained from an accredited laboratory and not more than 72 hours before the flight. (engineeringnews.co.za/)

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Real Estate

MONDAY SEPTEMBER 28, 2020

Kenya’s office supply glut gives tenants upper hand

ffice building owners in Nairobi are offering favorable leases to Tenants, thanks to a significant amount of stock and upcoming developments. The rising supply of new offices is giving tenants an upper hand in lease negotiations, while forcing landlords to slash or maintain rents in order to become more competitive and attract occupants. Despite variable economic markers, the macroeconomic fundamentals that contribute to the overall dynamics of the property market have remained largely stable in the first half of 2019 says Vivian Ombwayo, Broll Kenya’s Head of Research and Valuations. Ombwayo says that as a result of increasingly attractive leasing terms offered, A-grade office space registered the highest yearon-year occupancy growth of more than 27% from 65% in the

first half of 2018 to 83% in the corresponding period in 2019. B-grade office space grew at a rate of 9% during the same period, recording an occupancy growth rate of 88% in H1:2019. “But the key driver to reason we have seen some take up in office space, is that landlords are finally beginning to accept softer rentals

and lease terms”, Ombwayo said. Historically, Nairobi’s office supply has mainly been located within the CBD, but in recent years there has been a notable shift to extended business nodes such as Westlands, Upper Hill, Parklands, Kilimani and Riverside. Secondary business districts like Karen, Lavington and

Gigiri, which were previously predominantly low-density residential zones, are now experiencing a proliferation of office parks, mainly delivering A-grade office space to the market. These areas are particularly popular with multinationals and NGOs. Westlands continues to lead the market in terms of quality office supply with about 623,000m² of combined A- and B-grade space, of which more than 75% is A-grade. For this reason, it also continues to be the location of choice for corporates. However, the CBD and Upper Hill remain the preferred location of choice for local and government-based organisations. While the extended business districts are popular with blue chip tenants as they offer quality office stock, are centrally located, close to other socio-economic activities and are becoming the home of the skyscrapers that continue to shape Nairobi’s skyline. According to Broll, the outlook for the Nairobi office market is expected to remain balanced in favour of the tenant while the overhang of supply is gradually taken up.

JP Morgan eyes Africa for growth

merican multinational investment bank, JPMorgan Chase & Co has confirmed plans to expand in Africa as it sees international investors appetite in the African growth story. The New York-based lender presently has branches in South Africa and Nigeria. It is hiring in sub-Saharan Africa as it works with companies to list their shares in London despite Brexit uncertainty. “There are fast-growing businesses in Africa, that’s why we’re able to get these IPOs underway,” said Barry Meyers, managing director of JPMorgan’s UK capital markets and subSaharan Africa business, declining to be specific on deals. “International investors are interested and more open to the African growth story than ever before.” More offerings are expected over the next 12 months as African businesses seek to tap deeper pools of capital, he said. The increased interest comes amid a $3.5 billion share sale by Airtel Africa Ltd., London’s thirdlargest IPO this year, and follows a roadshow by officials from the London Stock Exchange earlier

this year to spur more issuance. Interest is starting to spill over into South Africa, where deal flow has been hindered by a contracting economy. Talks with foreign investors are becoming more frequent in an environment of greater political stability, Kevin Latter, the head of JPMorgan’s South African operations, said in a separate interview in Johannesburg. “There’s a renewed interest in South African corporates because they are well run, well managed, cheap and have regional proximity to what’s going to be the biggest consumer growth area in the next 20 years,” he said. “Yes, growth is low but it’s predictably low.” JPMorgan has grown consistently in the past few years and now has 180 regional staff, Latter said. It will continue to “invest in people as we look to grow our capabilities both in South Africa and more broadly in sub-Saharan Africa.” “Our own strategy and how we are running our own business reinforces what we believe the landscape to be for other international and South African corporates,” Latter said.

Namibia expects to attract US$1 billion worth of as an investment and investments Namibia tourist destination as well

amibia is to host a two-day economic summit which is expected to attract at least $1 billion worth of investments over the next two years, the Ministry of Information and Communications Technology said on Wednesday last week. Namibia’s economy has contracted for the last two years, and the southwest African nation has been ravaged by a drought which the meteorological services estimate to be the deadliest in 90 years. The economic summit, which will take place from July 31 to Aug. 1 in the capital Windhoek, is aimed at reviving and growing the Namibian economy, creating job opportunities and attracting investment opportunities, the ministry said in a statement. It will also seek to promote

as identifying and removing bottlenecks that are slowing the growth of the local economy. The International Monetary Fund projects that Namibia’s economy, which contracted by 0.8% and 0.1% in 2017 and 2018 respectively, will mildly contract again this year due to poor rains and reduced diamond production. About 600 delegates from across the country, Africa and the world are expected to attend the summit, which is the first of its kind. “The summit will provide a platform to showcase growth and investment prospects in the local economy as well as present local and international investors with a portfolio of investment projects in several sectors,” the ministry said. ((africapropertynews.))

MONDAY SEPTEMBER 28, 2020

Wednesday 30th September 2020

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News

MONDAY SEPTEMBER 28, 2020

Stakeholders maintain freight rates for cocoa shipment

he Cocoa Marketing Company (CMC), Ghana Shippers’ Authority (GSA), and the shipping lines ferrying Ghana’s cocoa beans to the international market have agreed to maintain their cocoa freight charges for the 2020/2021 cocoa season. As a result, the rate for shipment per tonne to the United Kingdom (UK) had been maintained at £30, the Northern Continent at €49, the Estonia at €56, the Mediterranean Europe at €55, the Far East at $89/94, and Brazil at $103. Ms Benonita Bismarck, the Chief Executive Officer (CEO) of GSA, announced this in Accra at the end of the Cocoa Freight Negotiation Conference. She said the new rates were reached after negotiations with

about 24 shipping lines upon consideration of a number factors including the global COVID-19 pandemic and bunker rates. The Bunker Adjustment factor (BAF), which refers to floating part of sea freight charges, which represents additions due to oil prices was also maintained at 27 per cent for all destinations, but for the UK it was reduced to 25 per cent. The rates were reached after negotiations and extensive deliberations on the future of the shipping sector and how best to support each other amid the impact of the COVID-19 pandemic on their operations. Some of the shipping lines that participated in the negotiations included; Maersk Line, Mediterranean Shipping Company (MSC), PIL Ghana

Ms Benonita Bismarck, Chief Executive Officer, GSA

Limited, Grimaldi Lines Ghana and ZIM Integrated Shipping Services Limited. Ms Bismarck said considering the prices of cocoa on the global

Cassava processing center commissioned at Alloapkoke

Cassava Processing Center which seeks to refine raw cassava into finished products, has been çommissioned at Alloapkoke in the Ellembelle District. The facility, which is expected to produce gari and other products, is under the auspices of Growing Economic Opportunities for Sustainable Development (GEOP), a Cassava Processing Company with funding from Christian Aid International(CAI), the European Union (EU), and the Zochonis Charitable Trust(ZCT). The company commenced production into various finished products such as gari, starch, cassava dough,gariwheat mix,gari-soya mix,garigroundnut-Nido-sugar mix,gari-ginger mix during the commencement of the third quarter of this year. The Chief of Alloapkoke, Nana Dehele Kpanyinli XI, who cut the tape to commission the facility, appealed to President Nana Addo Dankwa Akufo-Addo to commit more resources into the factory since the Ellembelle District had not had its share of the One District, One Factory (1D1F) project. The ceremony was on the theme,” Agro Processing:

The Path to Sustainable Job Creation for Rural Farming Communities”. The Chief expressed his readiness to release land for factories to come to the area and urged the Member of Parliament, Mr.Emmanuel Armah-Kofi Buah, and the government to initiate more projects to mitigate the unemployment situation in Alloapkoke and its environs. He asked residents especially the youth to venture into Agriculture and grow more cassava to feed the factory and appealed to the management of the facility to find ways to sustain the project. Nana Kpanyinli XI said traditional rulers and political leaders must team up to create jobs for the communities and opened his doors to companies ready to pitch more projects in the area. The Country Director for Christian Aid Ghana, Mr Kobina Yeboah Okyere paid a glowing tribute to organizations such as Gratis Foundation, Oxon, Christian Aid International, EU, and the District Assembly for the partnership to establish the factory. He said as part of the project, the center had equipped some

youth with skills training and about 600 farmers have been contracted to produce cassava to feed the facility. He tasked the community, management, and Board members to ensure the success of the project. The Board Chairman of GEOP Cassava Processing Center, Mr Ebo Dublin said Ghana’s economy hinges on Agriculture and that cassava was widely produced in Nzema as a source of income and food to households. The Regional Director of Agriculture, Alhaji Zublim Salifu in a speech read on his behalf said cassava was widely grown by 70% of farmers which underpins its socio-economic importance. He said the Council for Scientific and Industrial Research (CSIR) continues to intensify its research into various crop varieties such as cassava to add more value to them. Alhaji Salifu mentioned beer as other nutritional values of cassava and said the factory should do away with post-harvest losses. The MP for Ellembelle, Mr Buah in a speech read for him, said he would support the project to produce more gari for export to boost the local

market, it was prudent that the Authority and the shippers took another look at the freight charges to determine the way forward. GNA economy. The MP said he would continue to support NGOs that knock at his door to push the development agenda of Ellembelle. Mr Buah used the occasion to thank traditional rulers in Nzema for releasing land for projects such as Ghana Gas, ENI, Aya Community center among others. The DCE for Ellembelle, Mr Kwasi Bonzoh said the project forms part of an EU funded project with Ellembelle, AyawasoEast, and Ablekuma-South in Accra sub-metro as the only three Assemblies selected to benefit for the project. The DCE noted that the factory would not only provide jobs but a ready market for farmers and deal with post-harvest losses to boost the local economy. He said the project falls in line with the United Nations (UN) Sustainable Development Goals (SDGs) to mitigate hunger and reduce poverty. The District Director of Agriculture, Mr Bernard Donkor noted that cassava had no competitive bidding in the past and hoped that the factory would boost cassava production in the area. The General Manager of GEOP company, Mr. Daniel Cobbinah said the company would sustain international best practices in the production of Industrial cassava and allied products through strict adherence to industrial regulation, farmers motivation, and the Agricultural Industrial revolution. (GNA)

MONDAY SEPTEMBER 28, 2020

Feature

MONDAY SEPTEMBER 28, 2020

The Curse of Falling Expectations By Nancy Birdsall

ntil COVID-19, many people in the developing world felt good about their futures. Overall, developing countries had recovered quickly from the 2009-10 Great Recession, and many – especially in Africa and Latin America – were enjoying the benefits of China’s evergrowing demand for oil, minerals, and agricultural commodities. Expectations were rising. Not so in the US, where the benefits of economic growth since the 1980s have been funneled to the already rich, with the middle class and the poor increasingly falling behind. Many analysts attribute the rise of the populist right and US President Donald Trump’s election in 2016 to these trends. While the middle class has shrunk, a growing cohort of working-class white people has fallen into despair. Many are angry and frustrated over globalization-induced job loss, government neglect in the face of an opioid epidemic, underfunded social programs, and even profitdriven capitalism itself. (The interesting exception to workingclass malaise is among black and Hispanic people, who have become more optimistic about the future as they close the gap with working-class whites.) The end of rising expectations in America came slowly, over the course of many decades following the post-war boom, during which longstanding political institutions and established norms made the US liberal-democratic system relatively resilient. But in the current century, social cohesion (at least for whites) and a shared sense of moral progress began to decay, leaving the body politic increasingly vulnerable to the appeal of illiberal populism (and worse). This experience holds lessons for developing countries. Dashed expectations are bad not only for individuals’ health and wellbeing, but also for a society’s ability to build and sustain democratic norms and institutions. Economic growth in the developing world has generally been stronger and steadier than in the US for more for than a generation. China and India took off in the 1990s, and most other developing regions followed suit by the early 2000s, including – most dramatically – Sub-Saharan Africa. This growth has been inclusive enough to lift tens of millions of people out of extreme poverty ($1.90 per day), yet it has not necessarily secured their place in the middle class. Instead,

there is a massive new class of “strugglers” whose families get by on $4-10 per day per person. Though strugglers are better off than the poor, they lack regular paychecks and social insurance, and are thus vulnerable to household shocks such as a health crisis or a sudden loss of employment. Most are selfemployed or informal workers in the food, transportation (ridehail drivers), and retail sectors within expanding urban centers. Comprising more than three billion people in developing countries, they are both ambitious in pursuing a better future and anxious about the constant risk of falling back into poverty. Over time, economic growth has lifted some strugglers (most likely those with some secondary education) into a large and fastgrowing middle class, with daily incomes of $10-50 per person. Still, working-class struggler households predominate in the developing world, making up about 60% of people, with middle-class households constituting another 20%, and the extremely poor and the rich accounting for about 12% and 8%, respectively. Among these, it is the struggler and new-middleclass households that face the greatest risk from the pandemicinduced macroeconomic shocks that developing countries are experiencing. Andy Sumner of King’s College London and his co-authors estimate that a COVID-19-induced contraction in developing countries of 10% of 2020 GDP would push about 180 million people below the $1.90/day extreme poverty threshold. And while the World Bank has based its own estimates on smaller, country-specific GDP contractions

averaging 5%, it still warns that 70100 million people could fall into extreme poverty. Meanwhile, the poorest of the pre-pandemic strugglers may suddenly find themselves among the “extreme poor,” and an even larger number of the remaining strugglers – almost 400 million, based on World Bank estimates – are vulnerable to sharp income declines during the current recession. Add another 50 million people in middle-class households who are likely to become strugglers, and as many as 450 million people –more than the entire US population – are at risk. What does it mean for millions of people suddenly to find themselves worse off than they had expected, through no fault of their own? Latin America’s experience shows that when a vocal and demanding citizenry suffers a sharp reversal of expectations, the result is US-style social tension and political polarization. In 201415, growth across the region began to flag badly, averaging below 1% per year, which implies negative per capita growth. As a result, conditions that were tolerable when the economic pie was growing suddenly became less so. In the five years since, huge protests have erupted in Brazil, Bolivia, Chile, Colombia, and Ecuador, most of them over official corruption and the insider privileges enjoyed by political and corporate elites. Only in relatively well-off Chile were protesters successful in achieving progressive change. In the shadow of COVID-19, the developing world is experiencing severe political and financial pressures. Without their own tradable currencies, these countries cannot borrow from

future citizens (as the United States and the European Union can) to meet their immediate needs. Given the risks of fraying social cohesion, political instability, and recrudescent autocracy and populism, the International Monetary Fund and multilateral banks need to offer far larger lending programs for middleincome countries. These should be simple and straightforward, designed to finance immediate cash transfers to ensure that children in poor and struggling households do not go hungry and abandon school permanently. Such investments are necessary to reap the returns in future human capital upon which development ultimately depends. The COVID crisis is a moment when liberal democrats in the US must not only resist authoritarianism at home, but also lobby for additional support to developing countries. When people who believed their prospects were rising no longer do, politics can become messy – with collateral damage to freedom and civil liberties – very quickly. Nancy Birdsall is President Emeritus and a senior fellow at the Center for Global Development. Copyright: Project Syndicate, 2020. www. project-syndicate.org

MONDAY SEPTEMBER 28, 2020

Feature

MONDAY SEPTEMBER 28, 2020

5 things we learned from UNWTO’s 112th EXCO Meeting in Tbilisi

s countries continue to ease restrictions to restart tourism and by extension their economies, one of the sectors worst affected by the pandemic, the travel and tourism industry, (people to people industry) couldn’t have had any better leadership to lead recovery and also lift the fraternity from the staggering job losses and financial conundrum than the current leadership under Zurab Pololikashvili. The week gone by saw the United Nations’ Specialized Agency for Tourism, the World Tourism Organization (UNWTO) holding its 112th Executive Council session in the beautiful Georgian capital of Tbilisi. VoyagesAfriq would like to share with our readers the 5 key things Tourism leaders taught us during their meeting in Georgia. Courage and Confidence to Restart Tourism Even the ardent and notorious critics of this administration couldn’t help but admire the courage by the Zurab led UNWTO to hold the first major international UN event in person and the deployment of seamless virtual platform to stage this important event. It’s proved that, the highest level of tourism administration was willing to help national governments to restart tourism in a responsible way. It adhered to all protocols with 170 participants from 24 countries taking part. It simply said one bold thing, it’s Possible Together! Adapting to New Normal As it became abundantly clear that hardcore lockdowns and closure of borders were not sustainable, UNWTO’s leadership proved again that with discipline and enforcement of the protocols, it was more than feasible to start tourism and indeed even innovate to withstand any shocks in the future. Ministers who could not be in Georgia easily became comfortable and seamlessly connected making their various points on the floor and some even sharing their presentations during the session. Taking Opportunities Covid Presents

that

There is no denying that, one of the strongest areas for this administration is the digitalization

and investment opportunities that it has pushed for the sector. Not in the history of the UN Tourism has the body initiated a number of programs than now with major innovation and business partners to scale up ideas and attract the financial brains into the sector. It would have been surprising to have the event without at least an investment session. The new normal and its investments and business opportunities are the sideline events championed by no other person than the ever energetic and hardworking Head of the Unit’s digital transformation Natalia Bayona. It is an area most member states can adapt to unearth talents to drive the change we need in the tourism sector. Showing Compassion... Since the coronavirus was declared a global pandemic, the UNWTO through the launch of the travel tomorrow campaign and the global tourism crisis committee extended their heartfelt condolences to families of victims of the ferocious virus.

This could have stayed there but just as the football community showed enormous compassion for our compatriots who have departed courtesy Covid by honouring them on the field and even inscriptions in jerseys, Tourism whose main activities revolve around humans also took the opportunity to observe a minute silence at the opening of the Meeting to the departed souls. We say thank you! Gracias! Obrigado! Merci! It proved why it was leaving no one behind. International code for the Protection of Tourists rights The coronavirus pandemic didn’t spare any segment of the travel and world order and perhaps even exposed the vulnerability of travelers in particular where up till now, travelers are battling it with suppliers of the status of tickets, service etc. It is gratifying to note that, the Executive Council during their deliberations promulgated the adoption of the international code for the protection of tourists’ rights and harmonizing tourism consumer rights protection in the

post Covid-19 scenario. This will help us build back better! UNWTO’s Global outreach drive The noble agenda to have UNWTO present in all 5 continents brought some excitement when the Secretary General reported of the confirmation by the Saudi Arabian Government to host the first UNWTO office outside of Madrid. The Executive Council under the chairmanship of Minister Najib Balala of Kenya ratified the draft decisions to pave the way for this great stride. Members overwhelmingly endorsed the decision and hoped that others will follow. Leadership stood in all of this and the Government of Georgia’s example of staging the event can be emulated by other national governments to make the restart even more realistic. I end my note with Najib Balala’s assertion that tourism, “The soul of travel is interaction “and let’s continue the push albeit the new normal.” It’s possible together!

MONDAY SEPTEMBER 28, 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