Business24 Newspaper 2nd December, 2020 by Business24 Online

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WEDNESDAY DECEMBER 2, 2020

NO. B24 / 134 | NEWS FOR BUSINESS LEADERS

‘Child labour, poverty still rife in cocoa areas’

Banks slow in adopting GMRAbacked repos By Joshua Worlasi Amlanu macjosh1922@gmail.com

r. Ernest Addison, Governor of the Bank of Ghana (BoG), has lamented the failure of banks to adopt the Global Master Repurchase Agreement (GMRA), which was introduced in October, for their Cont’d on page 3

Audit Service to surcharge banks

T By Benson AFFUL affulbenson@gmail.com

he 2020 Cocoa Barometer report has revealed that child labour in cocoa-growing areas remains rife as cocoa farmers are still faced with poverty, after two decades of failed interventions across the cocoa sector. The report demanded systemic change to end cocoa poverty, stressing that

after two decades of failed interventions, cocoa-farming communities are still battling the effects of poverty, child labour and deforestation. “Twenty years into rhetoric, the challenges on the ground remain as large as ever. Poverty is still the daily reality for virtually all West African cocoa farmer families, child labour remains rife, and old growth forests continue to be cleared to make way for cocoa production,” the report said.

ECONOMIC INDICATORS EXCHANGE RATE (INT. RATE)

As a biennial review of sustainability in the cocoa sector, the report provides stark details of how little positive impact current and past interventions are having for the farmers at the beginning of the supply chain. “Now is an important window of opportunity to move towards justice, as momentum for change is gathering across different stakeholders. Cont’d on page 2 INTERNATIONAL MARKET

USD$1 =GHC 5.7027

BRENT CRUDE $/BARREL

POLICY RATE

14.5%

NATURAL GAS $/MILLION BTUS

GHANA REFERENCE RATE

15.12%

GOLD $/TROY OUNCE

OVERALL FISCAL DEFICIT

11.4% OF GDP

PROJECTED GDP GROWTH RATE AVERAGE PETROL & DIESEL PRICE:

0.9% GHC 5.13

he Audit Service on Tuesday indicated its readiness to surcharge any participating commercial bank, that defaults in transferring tax receipts collected from the various transit accounts into the respective Bank of Ghana Holding Accounts. It said the action was in accordance with Article 187 of the 1992 Constitution. A statement issued in Accra by Mr George Swanzy Winful, Deputy Auditor General said “Our attention has been drawn to a publication in the social media in connection with our letter No.

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

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Editorial / News

WEDNESDAY DECEMBER 2, 2020

Editorial

Cocoa sector’s problems need lasting solution

istorically, Ghana’s position as a leading cocoa producer in the world is often blighted by news of child labour as well as endemic poverty among the crop’s farmers. Many interventions have over the years attempted to deal with these challenges with the gains made very much minimal. According to the 2020 Cocoa Barometer report, child labour in cocoa-growing areas remains rife as cocoa farmers are still faced with poverty, after two decades of interventions across the cocoa sector. The report demanded systemic change to end cocoa poverty, stressing that after two decades of failed interventions, cocoafarming communities are still battling the effects of poverty,

child labour and deforestation. As a biennial review of sustainability in the cocoa sector, the report provides stark details of how little positive impact current and past interventions are having for the farmers at the beginning of the supply chain. The report’s co-author, Antonie C. Fountain, of the VOICE Network, said after two decades of voluntary initiatives that do not tackle the root causes, it is time for systemic change in the sector. According to the report, to seize this moment, it is vital that the sector learns from its mistakes, or it risks repeating them. Last year, when Cocobod and its counterpart from the Ivory Coast engaged cocoa beans buyers to discuss making

farmers have a bigger share of the cocoa’s value chain, they cited sustainability one reason for making such demand. The two countries believed that the addition of a fixed ‘living income differential’ on all their cocoa sales (at USD 400 per tonne), applicable from the 2020/2021 crop would do enough to put more money in the hands of farmers to address poverty which is at the heart of sustainability. While that breakthrough was only achieved a couple of months ago, this paper would urge Cocobod to consider carefully the findings of this report and act accordingly in order to ensure that the country’s reputation as a lead cocoa producer does not suffer further damage.

‘Child labour, poverty still rife in cocoa areas’ Continued from cover Thanks to campaigning civil society organisations, the last two years have seen an increasing number of chocolate companies asking for regulation; significant global actors like the EU are committed to putting legislation in place; and the world’s two largest producers of cocoa, Cote d’Ivoire and Ghana, have formed a cartel to drive up the price for cocoa farmers,” the report stated. The report’s co-author, Antonie C. Fountain, of the VOICE Network, said after two decades of voluntary initiatives that do not tackle the root causes, it is time for systemic change in the sector. “All the ingredients are there to make it work, but it is now time to move forward and put in place ambitious, holistic and mandatory change, so that we can finally tackle the poverty, child labour and deforestation in cocoa.” According to the report, to seize this moment, it is vital that the sector learns from its mistakes, or it risks repeating them. The report said the last two decades of interventions have

failed for three main reasons. Firstly, it said efforts have only been voluntary, not mandatory, meaning that across the sector, actors are failing to do what they need to. “Within the multitude of government-driven covenants, national multi-stakeholder platforms and sector-wide collaborations, there are no penalties for non-compliance from companies or governments, nor enforcement to meet targets.” Secondly, it said while bad farming practices have been addressed, the underlying problems that exacerbate extreme poverty—including low cocoa prices, lack of infrastructure and no transparency and accountability as you move higher in the supply chain—remain unchallenged and unsolved. “There needs to be recognition that in its current form, the business model for high yields of cocoa means poverty for farmers and excessive profit for chocolate manufacturers. It’s time this changed,” it added. Thirdly, the report said efforts to solve complex issues of injustice and unsustainability in

the cocoa sector have not been inclusive or holistic enough. It said instead of inviting farmers and civic society to take a respected seat at the decisionmaking table, problems have been assessed using a top-down industry-based approach. This, the report said, serves the interests of industry and government rather than the producer farmers and their communities. “We are at the crossroads,” Isaac Gyamfi, Managing Director for Solidaridad in West Africa, said. “Do we continue skirting around the issue of farmers’ wellbeing, or will all stakeholders together radically redesign value distribution and decision making in the cocoa sector? Let’s make space at the table and assure a living income, for both farmers and workers.”

WEDNESDAY DECEMBER 2, 2020

Banks slow in adopting GMRA-backed repos Continued from cover repurchase (repo) transactions. The Governor said repo activities under the GMRA are yet to pick up, as banks continue to use collateral lending rather than repo under GMRA transactions. According to the Central Securities Depository (CSD), as at end-October, a total of GH¢108.83bn of repo transactions had been settled under the collateral lending option. However, just about GH¢24m has been traded so far under the classic repo transaction, which is based on the GRMA. “Considering the risk implications of collateral lending, I encourage you to patronise the repo under GMRA transactions,” Dr. Addison said. A key feature of the GMRAbased repo, relative to collateral lending, is that it allows for the transfer of title to collateral securities from the seller to the buyer. The title transfer reduces credit and liquidity risk, as it allows the buyer to make use of

the collateral during the tenor of the transaction, but return the same or equivalent securities to the seller at maturity. Prior to the BoG’s adoption and implementation of the GRMA, Fidelity Bank Ghana, Societe Generale and Frontclear, in January this year, completed a US$40m repo trade, the first ever GMRA-based transaction in Ghana, using the cedi government bond collateral.

Addressing bankers at the 2020 Annual Dinner of the Chartered Institute of Bankers, Dr. Addison said, “The Bank of Ghana recognises the key role that financial markets play in the effective transmission of monetary policy. Therefore, in the last three-and-a-half years, the bank has championed reforms in the repo markets, resulting in the adoption and implementation of a Global Master Repurchase

Agreement (GMRA) effective October 1, 2020.” The Governor further noted that these reforms have led to the most improvement in Ghana’s ranking in the ABSA Africa Financial Markets Index, climbing five places on the pillar for the “legality and enforceability of standard financial markets master agreements” in a single year. “The reforms in the financial markets are yielding the expected benefits to the securities market, with increased levels of bond settlements and transactions on the secondary market,” the Governor highlighted. At the end of October, GH¢86.2bn secondary bond market transactions were settled through the banks on the CSD platform. This represented a 54.7 percent growth over the GH¢55.7bn bond market transactions settled in the whole of 2019. Dr. Addison said the reforms have broadly eliminated settlement delays and reduced its attendant systemic risks.

Audit Service to surcharge banks Continued from cover EID/B.Line/AUD/20/7 issued on the October 5, 2020 concerning our audit observation on transfer of tax receipts by GCB to unknown sources amounting to GH¢52.5 billion. It said the record that the audit in reference, was a special audit exercise, which was requested by the Minister of Finance, Mr Ken Ofori Atta in a letter dated August 15, 2020, based on the mandate of the President under Article 187(8). The statement said the request included; the confirmation of the transfer of receipts from the various transit accounts maintain by commercial banks into the respective BoG Holding Accounts from 2015 to date. It was also to provide assurance that all CCVRs of Customs dating back from 2015 to date were duly credited to the authorized bank accounts within the specified periods. The request was also to

investigate and confirm that all transfers and debits in all Government accounts were duly approved by the Controller and Accountant-General and the Ministry of Finance from 2015 to date. “Please be informed that our letter in circulation is one of the letters which we issued to

participating commercial banks for their responses to infractions noted during our reconciliation of their statements,” it said. The statement said with the assistance of both the commercial banks and Bank of Ghana, they were able to trace with satisfaction, some of the transfers.

It said the cooperation from the participating banks was encouraging and “we are hoping to complete the reconciliation exercise soon. We shall submit the audit report to Parliament,” it added. GNA

WEDNESDAY DECEMBER 2, 2020

News

WEDNESDAY DECEMBER 2, 2020

ILO signs MoU with Management Development and Productivity Institute

framework for cooperation between the International Labour Organisation (ILO) and the Management Development and Productivity Institute (MDPI) on the Sustaining Competitive and Responsible Enterprises (SCORE) programme for Small and Medium Scale Enterprises was on Tuesday signed in Accra. A Memorandum of Understanding (MoU) to that effect, which would also facilitate the transfer of responsibilities for SCORE training activities in Ghana, was thus, signed between the two entities. It set the goals and objectives agreed by the parties for their collaboration during the implementation of a sustainability strategy for the SCORE training in the country. Mr Samuel Onoma Asiedu, National Project Coordinator, ILO SCORE Ghana Project, explained that the Score was an ILO global programme that sought to improve productivity and working conditions in Small and Medium Enterprises (SMEs). He said since 2011, the SCORE training was on-going under Phase I, phase II, and phase III expected to end in 2021. “The key component of SCORE is training intervention that combined practical classroom sessions with in-factory coaching. “The training demonstrates best international practices in the manufacturing and services sector and helps SMEs to participate in global supply chains,” Mr Aseidu said. He said about 215 SMEs had benefitted from the SCORE training, being sponsored with

funding from the State Secretariat for Economic Affairs (SECO) of Switzerland and Norwegian Agency for Development Cooperation. These SMEs, he explained, have been experiencing reduction in their production cost, improved delivery time, better working conditions for employees, waste reduction, less defects and safer working environment. According to Mr Asiedu, close to a 1,000 businesses were expected to benefit from the SCORE training programmes, and expressed the hope that the MDPI, which was an active implementation partner (IP) since the second phase of the project, would endeavour to sustain the programme after 2021 so that the set target could be achieved. “The MDPI would have to take up additional responsibilities of forging and managing partnerships with our development partners and IPs, extending training to many enterprises, while ensuring that

the standard of SCORE training is maintained in Ghana,” Mr Aseidu added. Mr Kwaku Odame-Takyi, MDPI Director General said he was optimistic that businesses that come on board would benefit immensely from the training session, which would look at issues like the workplace cooperation, quality improvement, productivity through cleaner and leaner production and a

clean environment, human resource management and safety workplace. “These things when addressed would help businesses to increase their sales and be able to manage their cost and improve profit,” he said. Mr Odame-Takyi said the training would involve two months in-factory coaching and three-day practical classroom sessions, adding that the MDPI was committed to delivering the training to satisfaction. Mr Kizito Ballans, Chief Director at the Ministry of Employment and Labour Relations, commended ILO and MDPI for the partnership to ensure that businesses of SMEs thrived in the country, while pledging the support of the Ministry to the programme. Mrs Akofa Ahiafor, Managing Director of Jireh Micro Finance, and a SCORE beneficiary, said before she participated in the SCORE programme, she used to experience so much wastage in production but after the training that problem was resolved. GNA

Prez inaugurates 5-storey admin block for UMaT By Eugene Davis

resident Nana AkufoAddo has inaugurated a five-storey administration block for the University of Mines and Technology (UMaT) campus at Tarkwa. The building, which was constructed by the Minerals Development Fund (MDF) at a cost of GH¢18.7m, has a total of 69 rooms and offices, including a 180-capacity conference room. Speaking at the inauguration, the President said the project was consistent with his vision to upgrade educational institutions at all levels, and he urged the

President Akufo-Addo cuts the tape to open the new administration block.

university authorities to ensure good maintenance of the asset. On his part, the Administrator of MDF, Dr. Norris Hammah, said

as the only mining university in West Africa, UMaT needed to be supported with funds from the MDF, whose mandate is to

provide financial resources to institutions responsible for the development of mining. The board chair for MDF, Esther Happy Edjeani, indicated that they will continue to support the institution by providing funds for other projects. Richard Kwasi Amankwah, the Vice Chancellor of UMaT, was grateful for the support and pledged to maintain the building in good shape. The MDF, which was set up to provide financial resources for the benefit of mining communities, derives its funds mainly from 20 per cent of mineral royalties paid to the government of Ghana.

WEDNESDAY DECEMBER 2, 2020

News

WEDNESDAY DECEMBER 2, 2020

Elikem Kuenyehia announces departure from ENSafrica|Ghana

likem Nutifafa Kuenyehia has announced his departure from ENSafrica|Ghana (previously Oxford & Beaumont Solicitors), a law firm he founded. The departure pauses a 21year legal career from Linklaters’ associate to Band 1 Chambers lawyer recognised in Ghana and beyond as: ‘“one of the prominent players in the corporate sector,” possessing strong experience advising local and international clients on the full range of mandates.’ Kuenyehia is most noted for starting Oxford & Beaumont in 2006 with just US$5,000 seed capital. In a local market with many established firms, Oxford & Beaumont quickly became an undisputed leading law firm in Africa based on international service standards, a disproportionate investment in training, a meritocratic culture

and Kuenyehia’s charismatic leadership. As managing partner, he grew Oxford & Beaumont as a fullservice corporate and commercial offering for Ghanaian corporates and global clients like Coca Cola, Google Inc., Standard Chartered Bank and multilateral agencies, and as the first Ghanaian law firm to open in the City. The Legal 500 has named him as one of only three law firm leaders, and the only one of his generation, clients consider to be a Hall of Famer “at the pinnacle of the legal profession in Ghana”. In December 2015, Kuenyehia initiated and jointly implemented the first fully integrated panAfrican law firm merger. Unlike the Swiss verein structure that typically characterises African law firm mergers, Oxford & Beaumont fully integrated into ENSAfrica. Kuenyehia is on the Governing Board of State Interest and

Governance Authority) as representative of the President of Ghana. He has been a non-executive director at Google Ghana Limited, Chase Petroleum and Hollard (formerly Metropolitan Insurance). He read law at Oxford and has an MBA from Northwestern University’s Kellogg School of Management. He trained at Travers Smith, joined Linklaters’ banking team as an associate in 1999 and after his MBA worked briefly for Diageo North America as associate brand manager for Captain Morgan Rums.

Prior to Oxford & Beaumont, he was part of the team, at United Bank of Africa, which under the leadership of Nigerian billionaire and philanthropist Tony Elumelu, set out to “democratise” banking in Africa. Reflecting on his legal career: “My proudest achievement has been able to lead and inspire a team of truly outstanding individuals to disrupt a market while assisting our clients to meet their business objectives” ” Kuenyehia is excited to start a sabbatical from the law of undefined duration.

Old Mutual launches Black and White Family Plan to ease as they can simply just say Hi financial burden on bereaved families to 0242 426 455 on WhatsApp

ne of Ghana’s innovative Insurance Companies, Old Mutual has launched the Black and White Family Plan – a revolutionary digital funeral policy aimed at offering a seamless solution to ease the financial burden felt by grieving families. For most Ghanaians, funeral payments are one of the big expenses in life. They create severe financial stress for families trying to meet traditional obligations of giving befitting funerals. With the use of the popular WhatsApp messaging app, Ghanaians can now conveniently and easily sign up for Black and White Family Plan designed to help families invest and protect themselves from the brunt of funeral expenses. Commenting on the launch of Black and White Family Plan, Rita Boateng, Head of Marketing and Operations at Old Mutual Ghana, said: “According to the latest annual report from the National Insurance Commission, Ghana’s insurance penetration rate stands at less than 2%, largely because of delays in the payment of claims, complex underwriting

and follow the interactive prompts to experience real time convenience in insurance. This funeral cover starts from GHS2,000.00 to GHS20,000.00 and covers the policy holder as well as selected spouse, children, parents, and parents in law,” Mrs Rita Boateng added.

processes, expensive premiums among others. Black and White Family Plan has tapped into the biggest messaging app (WhatsApp) to reach and enable Ghanaians to bridge this gap in a simple, accessible and convenient manner. Over the past 3 years, WhatsApp has become the most active social media platform/ messaging app in Ghana.

By providing this product via WhatsApp, Old Mutual Ghana provides a seamless and convenient solution as Ghanaians can now invest in a funeral plan, while accessing and using their favourite app.” “Our goal as an insurance company is to encourage families to protect themselves and loved ones from shock in the event of death. Now they can do this with their phones

Black and White Family Plan was inspired by the traditional black and white cloth used during funerals to celebrate lives. The policy seeks to celebrate life in a meaningful way and to give comfort to the bereaved without any barriers. The Black and White Family Plan has low monthly premiums with short premium payment term of fifteen years and the cover continues for the whole of life of the policy holder. Payments are made within 48 hours of reporting a claim after providing satisfactory proof of death. However, premiums and cover are guaranteed for the first 5 years of the policy. In addition, 10% of premiums paid in any three-years period will be paid back after each third year period provided the policy is still in force.

WEDNESDAY DECEMBER 2, 2020

Feature

WEDNESDAY DECEMBER 2, 2020

From Italy with wine - Ghana gets a taste of the world’s finest

n 25th November 2020, the Embassy of Italy and the Italian Trade Agency (ITA) in Accra, in partnership with Imexco, Say Cheers and Pomona Restaurant at Osu, held an event ‘Aperitivo in Giardino’, (‘Aperitif in the Garden’). The event aimed at celebrating, on the occasion of the 5th World Week of Italian Cuisine, the rich culinary and wine culture of Italy and at creating an opportunity for Ghanaians to savor the rich and quality taste of Italian wines, which are reputed to be among the very best in the world. Italy has been making wine for over four thousand years. Winemakers in the country have honed and perfected the art and science of its production, making it currently the largest producer in the world, with 1.1 billion gallons. Currently, some 1.7 million acres in the country are utilized for the production of wine, yielding an average of from 4.2 billion litres to 5.6 billion litres over the period from 2014 to 2019. The wine industry is a key player in the Italian economy and one of its top foreign exchange earners, as the delicacy is savoured all around the world by connoisseurs and beginners alike. It is also naturally, an indispensable staple of local Italian culinary culture, and a pillar of the Mediterranean diet, which was declared an “intangible cultural heritage of humanity” by UNESCO. Wine is produced in all of the country’s twenty regions, with variations corresponding with the local cuisines and local climates of these regions. 590 grape varieties have been identified in

Italy, with hundreds more yet to be catalogued. Piedmont, Lombardia, Veneto and Tuscany are among the major wine-producing regions, responsible for globally acclaimed wines such as Barolo, Barbaresco, and Brunello di Montalcino. In recent times, Verdicchio, Sagrantino, Primitivo, Nero D’Avola and others from South and Central Italy are also catching the attention of wine lovers while Chianti, Soave, Pinot Grigio, Passitos and Moscatos from various regions around the country have long been held in very high regard by connoisseurs. At the turn of the 20th century, the Italian wine industry faced some threats to its survival, owing partly to its insistence on high production standards. The implementation of a strict regime of regulation, labeling and authenticity standards, the most significant of which was the Denomination of Origin (Denominazione di Origine Controllata, DOC) Law in 1963. These initiatives ushered in a golden era of Italian wine production, with significant

improvements to the quality of grapes used in the production of wine in the country. Italy is now an undisputed leader in the field, responsible for about 29 percent of global production since 2017. Between 2017 and 2019, wine contributed €5.9 billion and €6.4 billion to the Italian economy. When the ancillary industries reliant on the wine industry – such as manufacturing, processing, marketing and tourism – are included, wine yields €10.6 billion a year, with an average increase of 5 percent annually. 1.3 million Italian jobs, directly and indirectly, rest on the Italian wine industry. Italy has also become a leader in Europe for organic vineyards. Given its outsize role and the vast potential of the market, it is gratifying that the Italian wine industry, through the Italian Embassy and the country’s trade agency, is turning its attention to the Ghanaian market. Closer economic ties between the two countries, which takes account of the relative strengths of the two economies, can only be a good thing and wine is one of the ways

in which those ties can be more tightly forged. But there is more. As a country with a growing middle class, the Ghanaian market is a natural market for lifestyle products such as wines and the high quality and variety of Italian wines will be appreciated by local tastemakers. It will also help the tourism and hospitality industries which can take advantage and widen the range of refreshments available to punters. The industry itself also has much that it can pass on to Ghanaian players in the agricultural sector. With many centuries of experience and innovation, the Italian wine industry has built systems and adopted practices that have led to successful agricultural yields for the benefit of Italian winemakers. While grape culture is far from ascendant in Ghana, there are surely transferrable skills that can be applied in the service of Ghana’s cash and food crop production systems. Fittingly, “Aperitivo in Giardino” was held during the annual Italian Cuisine week, which celebrates and promotes the wider Italian culinary culture of which wine is an inextricable part. This event was a perfect example of the flourishing of cultural interactions between Italy and Ghana that can be of great benefit to both countries, not only culturally but also economically. And to that we can only say “cheers, bottoms up!” and recall the wise words of the multiple Oscar-winning film director, Federico Fellini, who once said: “A good wine is like a good film: it lasts an instant and leaves a taste of glory in your mouth.”

WEDNESDAY DECEMBER 2, 2020

Feature

WEDNESDAY DECEMBER 2, 2020

Implications of Covid-19 on infrastructure finance in Africa

here is a significant infrastructure finance gap in Africa that is likely to widen due to the Covid-19 pandemic unless countries consider alternative financing techniques, says Dr Ashenafi Fanta, senior lecturer in Development Finance at the University of Stellenbosch Business School (USB) in Cape Town, South Africa. “Infrastructure provides useful economic benefits, and we need infrastructural development to achieve economic transformation in Africa. Many African countries are now looking at transforming their economies to reduce poverty and to create jobs. “We have three major economic sectors, namely the agricultural sector, the service sector, and the industrial sector. When countries develop, the usual path would be a shift from the agricultural sector to the service and industrial sector,” he says. “Structural transformation is very critical, and infrastructure provides essential input into structural transformation. If we want to grow the industrial sector in Africa, we need to invest in the energy sector, transport infrastructure, ICT infrastructure and other critical infrastructural sectors.” Dr Fanta says economic transformation also entails increasing labour productivity in all three sectors and achieving labour productivity can be done through infrastructural development, which is critical for economic transformation and economic recovery in Africa. Impact of the pandemic on the global economy Economic growth across global regions has decreased. “Many African countries have been experiencing fast economic growth so for these countries experiencing a decrease of 2, 8% is a big loss. There had been positive developments in poverty reduction across the globe but with the contraction of outputs, it’s going to reverse. “The health and economic consequences of the pandemic are likely to be worse in countries with widespread informality. This is a big concern for us in Africa because we have a large segment of the economy in the informal sector. The blow is the hardest in countries that rely on global trade, tourism, commodity export, and external financing. Investment in infrastructure can help in job creation and in boosting private

sector activities,” he says. State of infrastructure in Africa Dr Fanta says the availability of infrastructural services and access of the population to infrastructure services in Africa is very low. Looking at the state of infrastructure for each sector reveals a gloomy picture: • In the energy infrastructure sector, a combined power generation capacity of 44 countries of Sub-Sahara Africa with a population of about 800 million is 92,27 GW (in 2012) less than that of Spain with a population of about 45 million, which is 105,27 GW. More than 640 million Africans have no access to energy, giving an electricity access rate of just over 40% for African countries – the world’s lowest. • In the transport sector, only 208 kilometres of roads in Africa are available per 1000 square kilometres of land area, compared to the world average of 944 kilometres per 1000 square kilometres. • In the water infrastructure sector, only 61% of Africans had access to clean water and 31% to adequate sanitation (in 2010). • The ICT sector, which is very critical for economic transformation, only has 19 million broadband internet subscribers in the entire subSahara Africa region – about 6% of the total number of telephone subscribers. “The financing deficit in Africa is also very large and according to a report by the Africa Development Bank from 2018, Africa’s total infrastructure needs amount to $130-170 billion a year, with a financing gap in the range of $68-108 billion,” says Dr Fanta. Public finance is the primary source of funding infrastructural development in Africa. “However, there is increased pressure on

public finances due to the bigger health expenditure following Covid-19 responses; governments had to make welfare payments to vulnerable households, and there was a loss of tax revenue as governments had to provide help to businesses that are struggling to stand on their own feet during the pandemic. “Covid-19 had an impact on both the revenue and expenditure side of public finance and money that governments were going to put forward for investment in infrastructure will no longer be available,” he says. Alternative sources of funding Dr Fanta says borrowing money is not the answer. “Governments have already reached their borrowing limits. There had been a concern by international financial institutions including the International Monetary Fund (IMF) and the World Bank that many African governments are facing a debt crisis. As a result of Covid-19, many countries had to borrow a massive amount of resources from international as well as local markets and this has pushed the public debt beyond what governments can handle. “The IMF already identified about 17 African countries that are in high debt risk. This is a concern because any further accumulation of debt will be detrimental to the countries,” he warns Dr Fanta suggests the following alternative funding mechanisms to provide funding to infrastructural development that will be useful for economic transformation as well as economic recovery: • Infrastructural bonds: This is a debt, but they will be linked to specific infrastructural projects and not added to public debt. These bonds are designed to attract funding specifically to

a particular infrastructure, for instance in the energy or transportation sector without placing further pressure on public finances. • Development impact bonds: These are bonds where private sector entities contribute funding to kick start an infrastructural activity or investment. They will agree to generate return only if a particular development goal is met. If a development goal is met, then donors will pay out the private sector entities the principal plus return or principal plus interest. • Commodity-backed loans: Private sector entities are invited into infrastructural investments programmes with expectations that in the event the infrastructural asset fails to generate a return, then the commodities can be used in settling. • Tapping into pension funds: These funds in Africa are not well-developed except in a few countries including South Africa, Nigeria, and Kenya. Pension funds are very cautious in investing in infrastructure. There are initiatives in Nigeria where credit guarantees are made available to entice pension funds to invest in infrastructural facilities. *** The University of Stellenbosch Business School (USB) is a tripleaccredited business school and offers a cluster of internationally accredited Development Finance programmes – PGDip, MPhil and PhD - to implement sustainable solutions to develop Africa where it matters. All programmes are offered via its immersive, flexible Blended Learning format from 2021. Visit www.usb.ac.za for more information. CONTACT DETAILS Dr Marietjie van der Merwe USB Representative Marie@ globalnatives.com +230 606 2341 / +230 5 701 1362

WEDNESDAY DECEMBER 2, 2020

Companies

WEDNESDAY DECEMBER 2, 2020

Devtraco Foundation donates nose masks to schools in Ayawaso Municipality

he Devtraco Foundation, the corporate social responsibility (CSR) structure of the Devtraco Group, together with their partners, Innova DDB have presented FDA approved nose masks to underprivileged schools within the Ayawaso Municipal Assembly. The donation is a timely intervention as most schools have reopened for final year students, with the rest set to join them in January 2021. Speaking at the donation exercise, Eugene Tettey-Fio who presented the nose masks to the schools on behalf of the Devtraco Foundation said the donation forms a part of Foundation’s commitment to ensure the wellbeing of their surrounding communities. “As a not-for-profit organisation, our mission is to move beyond occasional Corporate Social Responsibility (CSR) activities to a complete dedication to promoting the social wellbeing of our surrounding communities through sustained social

Mrs. Samantha Aidoo of The Devtraco Foundation handing over the FDA-approved nose masks to Madam Janet Azaglo (Headmistress, Maamobi Prisons Basic School). Looking on are Adam Yusif (Assemblyman) and Madam Doris Owusu of the Ayawaso Municipal Office.

initiatives. From inception to date, the Devtraco Foundation together with partners, Innova DDB have been very instrumental in teaming up with other organisations to provide resources to make the lives of others in our communities much better,” he said. Mr. Tettey-Fio further noted that the negative impact of the COVID-19 pandemic, particularly

on school children, makes it necessary for deliberate actions to be taken to mitigate the impact on teaching and learning. According him, “Indeed, with the global pandemic of COVID-19 negatively affecting our economy and the world at large, there has been the need to step up and provide basic services to make the lives of our future leaders a little bit more comfortable. I

t is in this regard that the Devtraco Foundation and our partners – Innova DDB came up with this initiative to produce masks as per the FDA guidelines to be given out for free to these young ones so their learning is not impacted in any negative way.” “Our strong belief in the potential of the students here and in what they can achieve, is motivation enough for us to provide them with essential tools – FDA approved nose masks so they can continue with their schooling and studies with a much reduced risk of exposure”, he added. Mr. Tettey-Fio called on others to emulate the Devtraco Foundation’s initiative and give generously to others no matter how little. He further encouraged all Ghanaians to observe all COVID-19 safety protocols by washing hands frequently, masking up always, and ensuring the appropriate social distancing whenever. The donation is the fifth in the Devtraco’s COVID-19 fight dubbed #MaskUp Campaign.

Four tips on how to be financially savvy this holiday season

ith the holidays just around the corner, it’s important for consumers to exercise caution and self-discipline when managing their money over this period. Lack of financial discipline around the festive season can easily lead to financial woes especially in these trying times. Hannah Annobil-Acquah, Head of Retail Banking at First National Bank Ghana says, you can avoid getting into financial distress during this yuletide period by doing the following: 1. Plan your budget and be honest with yourself on what you can afford. 2. Do your research ahead of time - you need to know exactly what you want to buy and determine the price of those goods upfront. Buy only what you need and not because something is on sale. 3. Don’t use debt to buy non-essential or luxury goods. Consumers should also remember that credit incurs interest. 4. If you’re tapping into your

Mrs Hannah Annobil-Acquah

long-term savings or emergency saving funds, this also suggests that you may not afford a lot of Christmas shopping and spending. Consider the financial burdens ahead in the incoming year. “Sometimes we are lured by the excitement, appealing marketing and are tempted to buy goods simply because we are

told that the prices have been reduced,” Mrs Annobil-Acquah says. “However, it’s important to understand whether there has been any substantial reduction in the price of the item you wish to buy.” The easiest way to determine if there has been a decrease is to track the price over a period of time. Do not be tempted to spend

excessively, and if you have a list of what you want to buy and a budget, stick to it. “In these tough economic times, we need to be more prudent and stricter about our spending habits,” Mrs Annobil-Acquah adds. “Just because something is labelled cheaper in the festive season doesn’t always mean that you must buy it.”

WEDNESDAY DECEMBER 2, 2020

Feature

WEDNESDAY DECEMBER 2, 2020

The importance of a positive workplace culture

nyone who has ever worked in an organisation with a toxic or negative culture will know that it is not a pleasant experience. This is why it is important to establish a positive workplace culture to give employees great work experience. Having a positive workplaces culture is very important. Below are some of the reasons. 1. Staff retention All businesses need people to maintain operations regardless of the product or service offered. As such, people are the most important assets of every organization, and retaining talent should be the highest priorities of most organisations. Companies with positive workplace characteristics such as feedback and growth and development policies are far more likely to be able to retain talent. These characteristics help keep people satisfied at work and encourage employees to establish long-term careers with the company.

public and potential employees, and it can greatly influence what positions an individual applies for. Everyone wants to work for a business that has a positive workplace culture, and such cultures become a part of an organisation’s brand identity. The importance of culture goes beyond simply attracting great people. Great cultures shine through into great products and services, which contributes to a positive business performance and an even stronger brand identity. 3. Employee expectations Workplace culture is not something one can see or even something that new employees read about. Yet all companies have one, and it can significantly affect the expectations of new and existing employees. Different types of workplace cultures affect employee expectations in different ways. And different groups of employees may have different expectations.

2. Brand identity

How to change workplace culture?

In order to retain great talent, organisations need to attract the talent in the first place, and workers are often attracted to companies with a strong brand identity. A brand identity is how businesses are perceived by the

Fortunately, it is possible to change negative cultures to positive ones. These changes are guided and lead by the company’s management and its HR team. If you need to adjust your workplace culture, the following

steps can help guide you through the process: 1. Evaluate the company and its current culture Understanding the current workplace culture is the first important step to changing it. In order to evaluate the current workplace culture, the following questions must be answered: • What is our current working style? • What behaviors do managers and employees display? • What policies have been put into practice? • What values seem to be important? 2. Define the values and strategic direction of the company It is important to define the values and the strategic direction of the organization. For example, you may have discovered you have a hierarchical, toxic culture, but your organisation wants to transform to a more startup-like culture (a company that values open communication, creativity and innovation). Or you may also want to focus your values more closely on improving customer service. Your workplace culture needs to align with what your organisation wants to achieve in the future and what it deems as

important. 3. Make behavioral changes at an individual level The workplace culture is not separate from the people who work in the organization. If you want to enact change, you will need to help people make behavioral changes at an individual level. For example, one of the values of the of the organization is work-life balance, but everyone in the business is currently working 12-hours a day. One of the first behavioral changes needed to make as an HR professional would be to encourage managers to work only eight hours each day, so that this behavior can cascade down through the organisation. 4. Provide training and support Workplace culture, just like the behaviors that support it, can’t be changed immediately. For the organizational cultural change to progress, HR will need to provide managers and employees with continuous training and support. This might include individual training programs to make sure that workers accept new processes, or it may include team-building activities to foster a sense of collaboration.

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17 CONTINUED FROM PAGE 15 Sustaining workplace culture through HR policies Culture is the character and personality of your organization. It’s what makes your business unique and is the sum of its values, traditions, beliefs, interactions, behaviors, and attitudes. Positive workplace culture attracts talent, drives engagement, impacts happiness and satisfaction, and affects performance. The personality of your business is influenced by everything. Leadership, management, workplace practices, policies, people, and more impact culture significantly. Creating a positive workplace culture can make or break an organisation’s success. Yet at the same time, it isn’t something that can simply be accomplished and then left unattended. A positive workplace culture can only be maintained through sustained efforts by the HR and management teams. The biggest mistake organizations make is letting their workplace culture form naturally without first defining what they want it to be. HR’s Role in Sustaining workplace culture Culture plays a vital role in an organization’s success. Therefore, HR managers and other members of the HR team should foster a high-performance organizational culture. HR managers are responsible for ensuring that culture management is a core focus of their organization’s competitive efforts. For HR managers to influence culture, they need to

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work with senior management to identify what the organizational culture should look like. Strategic thinking and planning must extend beyond merely meeting business goals and focus more intently on an organization’s most valuable asset—its people. HR has been described as the “caretaker” of organizational culture. In carrying out this essential role, the HR team should help build and manage a strong culture by: • Being a role model for the organization’s beliefs. • R e i n f o r c i n g organizational values. • Ensuring that organizational ethics are defined, understood and practiced. • Enabling two-way communications and feedback channels. • Defining roles, responsibilities and accountabilities. • Providing continuous learning and training. • Sustaining reward and recognition systems. • E n c o u r a g i n g empowerment and teams. • Recognizing and solving individual and organizational problems and issues. HR professionals have many tools for developing and sustaining a high-performance organizational culture, including recruitment practices, onboarding efforts, recognition programs and performance management programs.  Recruitment practices The central role that HR plays in helping an organization capitalize on its culture is in recruitment. HR has the opportunity to select people who fit the way the organization operates. Traditionally, recruitment focuses primarily

on an applicant’s skills, but when an employee’s personality also fits with the organization’s culture, the employee will be more likely to deliver superior performance. On the other hand, ill-fitting employees and subsequent rapid departures is costly to the organization.  Onboarding programs HR plays a primary role in socializing new employees by designing and overseeing the onboarding process. Onboarding teaches newcomers the employer’s value system, norms and desired organizational behaviors. HR professionals must help newcomers become part of social networks in the organization and make sure that they have early job experiences that reinforce the culture.  Reward and recognition programs These programs are key mechanisms HR can use to motivate employees to act in accordance with the organization’s culture and values. For example, if teamwork is a core value, bonuses should value teamwork and not be based on individual performance. HR should also put the spotlight on those who practice and live the company’s values.  P e r f o r m a n c e management programs Employees who share values and aspirations tend to outperform those in environments that lack cohesiveness and common purposes. Performance management programs can greatly affect corporate culture by clearly outlining what is expected from employees as well as by providing a feedback tool that informs employees about proper behavior.

Authored by: Mrs. Margaret Titus-Glover Margaret is a certified HR Professional with over 14 years of combined experience in Human Resource Management. A creative thinker, problem solver and decision maker whose experience is in helping start-up businesses develop strong HR policies, procedures and processes. She is experienced in HR Strategy, Benefits Management, Recruitment and Retention Strategy, Performance Management, Orientation/On boarding Programs, Recognition Programs, HR Compliance, Compensation, Employment Policies, Employee Engagement Initiatives and Professional Development. Are you a passionate small business owner and looking to expand or improve your HR capabilities and create a successful plan for growth and sustainability? Then MS Staffing is the right company for you. Contact MS Staffing on: 0248036563 | info@msstaffinggh. com | www.msstaffinggh.com | Facebook: msstaffinggh | LinkedIn: MS Staffinggh

WEDNESDAY DECEMBER 2, 2020

How B5 Plus is positioning Ghana as a net exporter of iron and steel products

eaturing prominently in governments priority developmental programs and now a household term is the one-district-one-factory (1D1F) initiative- touted as the nostrum for unraveling Ghana’s industrial revolution. The reasoning behind the concept is simple-Government will support existing companies or private sector investors to set up factories in various districts across the country, to stimulate economic growth, better utilize resources and create jobs. So far, the project appears to be on track with the one-districtone-factory secretariat reporting that about 170 factories were at various stages of completion. Out of this number, a total of 28 Factories have been completed and operating fully as 1D1F projects while government has partnered the private sector to either expand or revive existing companies, bringing the total number of operational companies under the 1D1F and private partnerships to 76. B5 Plus Company Limited, one of Ghana’s biggest steel and metal fabrication companies has been a beneficiary of the 1D1F initiative. Situated around the Kpone barrier, the company produces over 4,000 iron and steel products such as nails, wire mesh, iron rods, roofing sheets etc. Two decades of existence has made B5 Plus a household brand an exporter of steel to countries within the west African subregion. “We started nearly two decades ago importing and selling steel products. Today we are the biggest metal factory in Ghana and our products are not only sold here but supplied to 15 other countries within the sub region” said Mukesh Thakwani the CEO and founder of B5 Plus Company limited when a team from the

Ghana Investment Promotion Centre (GIPC) visited the factory. With government support, under the 1D1F B5 Plus is now pursing the construction of what will be the largest metal manufacturing factory in West Africa. The over 80 million-dollar project is located within the Ningo Prampram District of the Greater Accra region. When fully completed, the new factory is expected to create some 5000 new jobs in addition to the existing 10,000 workers already employed by B5 Plus Company limited. Mukesh Takwani explained that: “we just finished the first phase of the new construction and at present we already have about 2300 workers on sight. But once we complete, we are projecting over 5,000 direct and indirect jobs to be created and up to 10,000 with the second and third phase”. For workers, this is exciting news. Abdulai Alhassan for example is a mechanic at the B5 Plus factory. According to Abdulai, working at the factory has helped him conveniently cater for his family. “I have a wife and two children that I take care of with my salary and I’m also putting up my house with a loan facility I secured from the company,” he said. “For me, working at B5 Plus not only earns me income but has helped me upgrade my skills as

a mechanic,” added a colleague of Abdulai, known as Richard Kartey. These sentiments are shared by many of the hands working in the factory floors of B5 Plus Company Limited. They believe the expansion through the 1D1F initiative will create avenues for many more unemployed persons to earn an income. Besides the job opportunities, the expansion of the B5 Plus steel factory will most significantly boost Ghana’s iron and steel manufacturing capacity to meet both local and export demand. It is estimated that the installed capacity of the local steel industry is about 1,000,000 Metric Tonnes (MT) whereas the country’s annual average demand for steel is about 350,000 MT, leaving an excess capacity of 650,000 Metric tonnes for export. At present, B5Plus also has a total installed capacity of 500,000 metric tons but operates at about 20 percent capacity. It is however expected to scale up to over a million tons with the completion of the new factory in Pramprarm. With B5 Plus projecting over a million tons of steels production together with additional excess output from other players in the steel industry, Ghana is looking at well over a million tonnes of steel products not only for the country but export to the rest of the African Continent. “With the first phase of our project, we are saving more than a 100 million dollars in foreign exchange and we plan to export to the whole of the west African Market. With the second phase, we will export to other to the rest of the African countries,” remarked Mukesh Thakwani. Now staring at a nascent automobile Industry hub, the expansion of a steel manufacturing company like B5 Plus comes as timely development to meet the increasing demand for steel that

will required by the automobile manufacturers and other related industries. Moreover, although data is not readily available on steel production in the continent, it is assumed that Sub Saharan countries production of steel is much smaller than demand which is estimated to hit some 37.2 million MT between 2019 and 2020. With the coming in force of the African Continental Free trade Area Agreement, it means Ghana has a good chance of tapping into this market and establishing itself as a net exporter of steel in Africa. Reflecting this new chapter in the Iron and steel manufacturing Industry in Ghana, owing to governments effort under the 1D1F initiative, the Ghana Investment Promotion Center in furtherance of the growth of the industry is impressing on investors to explore business in the steel industry as well as other sectors of the economy. “We believe that these opportunities offer ample and very attractive returns so we invite various investors to have a good look at the 1D1F policy and partner with Ghanaians so together we can create a great economy,” said Yofi Grant the Chief Executive Officer of the Ghana Investment Promotion Center. Besides the story of B5 Plus and its rippling effects in the steel industry, the impact of the 1D1F initiative transcends into various industries such as agro processing, garments and apparel and many more.

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