Business24 Newspaper 13th January, 2021 by Business24 Online

THEBUSINESS24ONLINE.NET

WEDNESDAY JANUARY 13, 2021

NO. B24 / 145 | NEWS FOR BUSINESS LEADERS

Equities begin year with a bang as investor sentiment improves

UNESCO warns education funding to decline by 12% By Benson AFFUL affulbenson@gmail.com

he United Nations Educational, Scientific and Cultural Organisation (UNESCO) has warned that total aid to education is likely to decline by 12 percent by 2022 as a result of the economic consequences of COVID-19. Cont’d on page 3

Gov’t’s growth, revenue plans seen shaping interest in planned Eurobond By Joshua Worlasi Amlanu macjosh1922@gmail.com

Ekow Afedzie, MD Ghana Stock Exchange

By Joshua Worlasi Amlanu macjosh1922@gmail.com

mproved investor sentiment is reflecting in a bullish stance of the Ghana Stock Exchange (GSE), as investors keenly look to take advantage of the current undervaluation

of equities, analysts have said. The bullish run began in the fourth quarter of last year and gained momentum after the December general elections, which returned incumbent President Nana Akufo-Addo to power. “The historical price to

ECONOMIC INDICATORS EXCHANGE RATE (INT. RATE)

earnings (P/E) ratio [of the stock market] has been around 12x; however, currently this ratio is below 5x. This is an indication that the entire market is hugely undervalued,” the Head of Research at Databank, 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

o increase investor appetite for Ghana’s planned 2021 Eurobond issuance, the government must signal a strong intention to revive growth and domestic revenue collection, both of which were battered by the COVID-19 shock,

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

Cont’d on page 3 Follow us online:

$41.26 2.622 1,922.57 329.50 $2,339.27 $109.65

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Editorial / News

WEDNESDAY JANUARY 13, 2021

Editorial

Let’s not grow weary

ince Ghana recorded its first case of Covid-19 somewhere mid-March last year, an estimated 338 Ghanaians have perished from the disease and its complications – official figures say. According to the Ghana Health Service, there has been more than 54, 000 confirmed cases – a figure which could potentially rise if the number of people who contract the disease and self-medicate is taken into account. However, over the last couple of months, it seems the apprehension and subsequent measures taken to prevent the spread of the virus has reduced drastically and Ghanaians have developed a nonchalant

attitude towards it. Unfortunately, until everyone is properly vaccinated against the virus, everyone remains at risk and our indifferent attitude does little to help. While this paper believes that the improvement in treatment protocols at the various health institutions have contributed immensely to reducing mortality rates, it is no substitute for dropping one’s guards against the virus. With the generally poor culture of routine medical check-ups, quite a number of Ghanaians may have existing health conditions that they may not be aware of – making them highly susceptible to the complications the virus brings. As the President has reiterated

in his numerous updates on measures taken to contain the virus’ spread, individuals must continue to act responsibly and take charge of their safety. Prevention is better than cure.. President Akufo-Addo in one of his updates revealed government plans to acquire the Covid-19 vaccines for Ghanaians. While this is good news, if roll out of vaccines across the world is anything to go by, then the vaccines may not be arriving anytime soon. While we applaud the President on his promise, it is still remains imperative for everyone to keep safe and observe all the protocols especially now that a new strain of the virus has been discovered.

Equities begin year with a bang as investor position of investors, Databank’s sentiment improves Mr. Boahen said the market Continued from cover Alex Boahen, said in an interview with Business24. “Because of that, investors are beginning to take advantage of this position of the market, especially the pension fund managers who most often restructure their portfolio at the end and start of each year,” he added. The GSE Composite Index (GSE-CI), which measures the weighted average price change of all the equities listed on the market, improved its return from a year-to-date position of -18.23 percent at the start of the last quarter of 2020 to close the year at -13.98 percent. At the end of trading on Tuesday, January 12, the benchmark index advanced by 11.74 points to 1,967.52, with a 1.34 percent year-to-date return, while the market’s capitalisation increased by 0.22 percent to GH¢54.67bn. “The market went so low in the past two to three years, and it was due for correction because most of the stocks on

the market were undervalued. This has been factored into the decision of investors currently, given that prices of most stocks are undervalued and this seems the opportune time to get back into the equities market,” Ben Ackah, General Manager at UMB stockbrokers, said in an interview. Stock market analysts hold a common view that the current position of the investor is largely going to drive the market this year. “From the third quarter of 2020, the market had started to rebound. What we noticed at the time was that instead of the supply side increasing in volume, the demand for stocks rather increased,” Mr. Ackah explained. Notwithstanding the current

remains cautious due to the existing risks in the economy, which could spill over to the market. “We are still cautious because there are issues with the economy. The suspension of the fiscal deficit limit of 5 percent of GDP could raise a lot of concerns with regard to the country’s debt levels and its implications on the economy.” Analysts have also pointed out a number of global factors that will play to the advantage of the stock market, including the low interest rate environment in advanced markets as well as the high market valuation on the back of the consistent higher performance of foreign markets for the past two years.

The re-election of Nana Akufo-Addo has coincided with renewed investors’ confidence

WEDNESDAY JANUARY 13, 2021

UNESCO warns education funding to decline by 12% Continued from cover This, according to the UN agency, is a threat to the recovery of education from the disruption of the pandemic. UNESCO said the pandemic further aggravates educationfinancing gaps, saying under the school closure and GDP growth scenarios, COVID-19 increases the annual funding gap of US$148bn by up to one-third, to as much as US$200bn. The UN agency, which is responsible for global education, said additional costs are needed to ensure children are safe when they return to classes, with access to hygiene facilities and extra classrooms needed to enable physical distancing. “These programmes and actions will add US$5-US$35bn to the financing need. They are however far cheaper than having to roll out second chance programmes later down the line. Acting now rather than later could reduce the potential cost of COVID-19 on education

by 75 percent,” it said. According to a UNESCOUNICEF-World Bank survey, distance-teaching solutions are simply not an option for at least 580 million students in low- and middle-income countries. The agency advised governments in low- and lower-

middle-income countries to resist pressure to cut their budget for education because of the difficult fiscal environment. Investment for schools and learners must be maintained if not increased, and governments must also direct a significant part of their education budget to

the most marginalised regions and schools, it added. In Ghana schools are reopening this month after a nine-month-long closure since March 2020, when the first cases of COVID-19 were recorded in the country.

Gov’t’s growth, revenue plans seen shaping interest in planned Eurobond Continued from cover Courage Kingsley Martey, senior economist at Databank, has said. Government is expected to raise up to US$5bn this year through Eurobonds to support growth-oriented public expenditures. Currently, according to bond market monitoring platform Cbonds, the yields on Ghana’s outstanding Eurobonds have fallen just below 9 percent from the peak of 14 percent in March 2020. “One important message is how government intends to revive growth and domestic revenue collection after the COVID shocks, beginning in 2021. Government needs to also emphasise measures it has taken and is implementing to ensure that even though the public debt stock is high, sustainability would not be undermined,” the senior economist said in an interview with Business24.

He noted that these measures need to be clearly stated as a strong selling point to attract investors to the 2021 Eurobond. “We have seen a gradual tightening of spreads for

Ghana’s Eurobonds since June. With the favourable news about COVID vaccine deployment, spreads have tightened further as investors now expect a gradual recovery in global fuel

Ken Ofori Atta—will he be reappointed as Minister of Finance in President Akufo-Addo’s second-term cabinet?

demand as economies reopen around the world. “This seems to have increased the risk appetite of global bond market investors and is driving demand for Ghana’s outstanding Eurobonds. The prevailing conditions are favourable for Ghana’s planned Eurobond for 2021.” He added that conditions can further be improved with the 2021 budget if the government signals its intention to compress the budget deficit and reduce the risk to debt sustainability. Ghana’s total public debt stood at 71 percent of GDP in September 2020. This is slightly higher than the market access threshold of 70 percent. Interest rates in the US and other advanced economies are set to remain lower for longer than initially expected, whereas the economic backdrop for emerging and frontier markets seems to have improved with the modest recovery in commodity prices.

WEDNESDAY JANUARY 13, 2021

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News

WEDNESDAY JANUARY 13, 2021

Allianz Life unveils Eduflex insurance plan

he Chief Executive Officer of Allianz Life Insurance, Gideon Ataraire, has stated that parents seeking to cater for the educational needs of their children in future must do so using insurance rather turning to their savings. Mr. Ataraire speaking at the launch of Allianz Life Insurance Eduflex plan stated that with the right insurance policy, parents would have the means of taking care of their children’s education even in the event they pass on. “People always confuse insurance and savings. Each individual may have investment or savings or retirement needs. They usually take care of all these forgetting that they have to protect their savings or investment. And you protect these things by buying insurance so that in the event something happens, you don’t go take money from your savings or investment but the allow the insurance to take care of it,” he said. According to the CEO of Allianz Life, the Eduflex plan allows the policyholder to

beneficiary(ies) enjoy life insurance protection during the term of the policy and an additional accidental injury cover for the beneficiary. This education savings plan is intended to accumulate funds for the sole purpose of funding the education of your children,” she added. Mrs. Kitome commenting on the distinctiveness of Eduflex on the market said apart from the cover the policy provides, policyholders can access a percentage of the total insurance premium contribution after two years if no claim is paid on the policy and every two years thereafter if no claims are made. The Deputy Commissioner of the National Insurance Commission, Michael Andoh, save towards their children’s education goals for their also speaking at the launch said insurance companies education and also protects children. their savings from any The policy holder, she said, must tasked their sales agents exigencies as may arise. can choose a guaranteed death to clearly define the benefits Explaining how the plan benefit that will be paid to his of insurance policies before works, Jane Kitome, Chief beneficiary and the payments selling them to their clients. A detailed definition, he said, Retail and Marketing Officer that’s made above the cost of at Allianz Life Insurance said insurance can grow in a savings would engender trust between insurance companies and their Eduflex provides financial fund. security by helping one meet “The insured and the clients.

School reopening good for stationery, publishing businesses—GUTA By Eugene Davis

he National Welfare Officer of the Ghana Union of Traders Association (GUTA), Benjamin Yeboah, has applauded government’s decision to reopen schools, maintaining that it will re-energise the stationery and publishing sector. According to Mr. Yeboah, some traders in the publishing and stationery sector had to divert their businesses because schools were closed, adding that the announcement from government will go a long way to boost the sector. “It has been very difficult for them. Some of the members had to divert to do other businesses to make ends meet, but with this announcement, they can go back to do their business. It is a winwin situation for them,” he told Business24. After being closed for nine months since March 2020 on account of COVID-19, schools are reopening this month, with basic schools resuming from Friday, January 15, while continuing Senior High School (SHS) students return to school on January 18.

Tertiary students returned to school on January 9, but first year SHS students will start school on March 10. The reopening of schools means business will get better for stationery and publishing

businesses, given that demand for their products will be revived. Mr. Yeboah urged GUTA members to adhere to the safety protocols as they restart their businesses. He added that with the onset

of the African Continental Free Trade Area (AfCFTA), members should seize the opportunity to be innovative and venture into other businesses that will help them capture the benefits of the AfCFTA.

WEDNESDAY JANUARY 13, 2021

News

WEDNESDAY JANUARY 13, 2021

Eni Ghana, partners pilot Rural Clean Cooking project in Ellembelle District

ni Ghana, on behalf of its partners in the OCTP project, GNPC and Vitol, has completed the distribution of 600 improved domestic wood fuel cookstoves in coastal communities in the Ellembelle District of the Western Region, with the aim of enhancing access to modern, clean and safe energy sources. The initiative represents the first milestone of the Rural Clean Cooking pilot project developed with World Bank and the Ghana Alliance for Clean Cookstove (GHACCO) to reduce exposure to unhealthy wood- smoke and decrease pressure on the depletion of forest resources. The 10 beneficiary communities are Sanzule, Krisan, Eikwe, Bakanta, Atuabo, Anokyi, Asemda, Ngalekpoley, Ngalekyi and Baku, all of which located in

the OCTP Onshore Gas Receiving Facility’s area of influence. Prior to the distribution, an awareness campaign was carried out in all ten communities in order to sensitize them about the use and

benefits of the cookstoves. The cookstoves have been produced locally by indigenous Ghanaian manufacturers and tested by the Institute of Industrial Research (IIR) of

the Council for Scientific and Industrial Research (CSIR). The involvement of CSIR was to ensure that the choice of the technology complies with National and the ISO (International Standards’ Organisation) standards for Cookstoves. The Rural Clean Cooking pilot project is part of a broader Local Development Project, with a budget of over $9M, developed by Eni Ghana with its OCTP partners, Vitol and GNPC to promote inclusive economic growth and well-being of people living in the OCTP’s area of influence. Eni is Operator of the OCTP Integrated Oil & Gas Development Project (Eni 44.44%, Vitol 35.56%, GNPC 20%), which produces oil and non-associated gas of the Sankofa and Gye- Nyame reservoirs.

Flour Mills of Ghana congratulates Daniel Kekeli Gakpetor

World Bank Plans to Invest over US$5 Billion in Drylands in Africa

he World Bank plans to invest over US$5 billion over the next five years to help restore degraded landscapes, improve agriculture productivity, and promote livelihoods across 11 African countries on a swathe of land stretching from Senegal to Djibouti. World Bank Group President David Malpass announced the investment at the One Planet Summit, a high-level meeting co-hosted with France and the United Nations that is focused on addressing climate change and biodiversity loss. “This investment, which comes at a crucial time, will help improve livelihoods as countries recover from COVID-19 while also dealing with the impact of both biodiversity loss and climate change on their people and economies,” said Malpass. The more than US$5 billion in financing will support agriculture, biodiversity, community development, food

security, landscape restoration, job creation, resilient infrastructure, rural mobility, and access to renewable energy across 11 countries of the Sahel, Lake Chad and Horn of Africa. Many of these efforts are in line with the Great Green Wall initiative. This builds on World Bank landscape investments in these countries over the past eight years that reached more than 19 million people and placed 1.6 million hectares under sustainable land management. “Restoring natural ecosystems in the drylands of Africa benefits both people and the planet,” said Moussa Faki Mahamat, Chairperson of the African Union Commission. Working with many partners, PROGREEN, a World Bank global fund dedicated to boosting countries’ efforts to address landscape degradation, will also invest US$14.5 million in five Sahelian countries – Burkina Faso, Chad, Niger, Mali, Mauritania.

lour Mills of Ghana, FMGL, believes that working as a family is of a fundamental importance in the professional life. This core value inspires us to be a trusted presence and strong support system in the lives of our 200 permanent employees. Flour Mills of Ghana, strive to treat every employee as a member of the FMGL Family and thus celebrate their achievements as our own. Therefore, we are absolutely thrilled to share in the joy and happiness of Samuel Gakpetor, who has been with us as a highperforming shipping manager for almost 10 years. It is with great pride that Flour Mills of Ghana congratulates Samuel Gakpetor on the

remarkable success of his son Daniel Kekeli Gakpetor, who, after a fierce battle with top performing schools in Ghana, led PRESEC (Presbyterian Boys Secondary School) to a 1st place victory in Ghana’s 2020 National Science and Maths Quiz and also climaxed his victory with an outstanding WASSCE results. Flour Mills of Ghana is a family-focused business with a family spirit, so to witness such brilliance in Mr. Gakpetor son’s performance has really inspired us and serves as a reminder of the greatness we have inside of us as a Company. To Daniel, the boys of PRESEC, and Mr. Samuel Gakpetor, we say: Ayeeko!

WEDNESDAY JANUARY 13, 2021

Feature

WEDNESDAY JANUARY 13, 2021

Whither America?

By Joseph E. Stiglitz

he assault on the US Capitol by President Donald Trump’s supporters, incited by Trump himself, was the predictable outcome of his fouryear-long assault on democratic institutions, aided and abetted by so many in the Republican Party. And no one can say that Trump had not warned us: he was not committed to a peaceful transition of power. Many who benefited as he slashed taxes for corporations and the rich, rolled back environmental regulations, and appointed business-friendly judges knew they were making a pact with the devil. Either they believed they could control the extremist forces he unleashed, or they didn’t care. Where does America go from here? Is Trump an aberration, or a symptom of a deeper national malady? Can the United States be trusted? In four years, will the forces that gave rise to Trump, and the party that overwhelmingly supported him, triumph again? What can be done to prevent that outcome? Trump is the product of multiple forces. For at least a quarter-century, the Republican Party has understood that it could represent the interests of business elites only by embracing anti-democratic measures (including voter suppression and gerrymandering) and allies, including the religious fundamentalists, white supremacists, and nationalist populists. Of course, populism implied policies that were antithetical to business elites. But many business leaders spent decades

mastering the ability to deceive the public. Big Tobacco spent lavishly on lawyers and bogus science to deny their products’ adverse health effects. Big Oil did likewise to deny fossil fuels’ contribution to climate change. They recognized that Trump was one of their own. Then, advances in technology provided a tool for rapid dissemination of dis/ misinformation, and America’s political system, where money reigns supreme, allowed the emerging tech giants freedom from accountability. This political system did one other thing: it generated a set of policies (sometimes referred to as neoliberalism) that delivered massive income and wealth gains to those at the top, but near-stagnation everywhere elsewhere. Soon, a country on the cutting edge of scientific progress was marked by declining life expectancy and increasing health disparities. The neoliberal promise that wealth and income gains would trickle down to those at the bottom was fundamentally spurious. As massive structural changes deindustrialized large parts of the country, those left behind were left to fend largely for themselves. As I warned in my books The Price of Inequality and People, Power, and Profits, this toxic mix provided an inviting opportunity for a would-be demagogue. As we have repeatedly seen, Americans’ entrepreneurial spirit, combined with an absence of moral constraints, provides an ample supply of charlatans, exploiters, and would-be demagogues. Trump, a mendacious, narcissistic sociopath, with no understanding of economics or appreciation of

democracy, was the man of the moment. The immediate task is to remove the threat Trump still poses. The House of Representatives should impeach him now, and the Senate should try him some time later, to bar him from holding federal office again. It should be in the interest of the Republicans, no less than the Democrats, to show that no one, not even the president, is above the law. Everyone must understand the imperative of honoring elections and ensuring the peaceful transition of power. But we should not sleep comfortably until the underlying problems are addressed. Many involve great challenges. We must reconcile freedom of expression with accountability for the enormous harm that social media can and has caused, from inciting violence and promoting racial and religious hatred to political manipulation. The US and other countries have long imposed restrictions on other forms of expression to reflect broader societal concerns: one may not shout fire in a crowded theater, engage in child pornography, or commit slander and libel. True, some authoritarian regimes abuse these constraints and compromise basic freedoms, but authoritarian regimes will always find justifications for doing what they will, regardless of what democratic governments do. We Americans must reform our political system, both to ensure the basic right to vote and democratic representation. We need a new voting rights act. The old one, adopted in 1965, was aimed at the South, where disenfranchisement of African-Americans had enabled white elites to remain in power since the end of Reconstruction

following the Civil War. But now anti-democratic practices are found throughout the country. We also need to decrease the influence of money in our politics: no system of checks and balances can be effective in a society with as much inequality as the US. And any system based on “one dollar, one vote” rather than “one person, one vote” will be vulnerable to populist demagogy. After all, how can such a system serve the interests of the country as a whole? Finally, we must address the multiple dimensions of inequality. The striking difference between the treatment of the white insurrectionists who invaded the Capitol, and the peaceful Black Lives Matter protesters this summer once again showed to those around the world the magnitude of America’s racial injustice. Moreover, the COVID-19 pandemic has underscored the magnitude of the country’s economic and health disparities. As I have repeatedly argued, small tweaks to the system won’t be enough to make large inroads in the country’s ingrained inequalities. How America responds to the attack on the Capitol will say a lot about where the country is headed. If we not only hold Trump accountable, but also embark on the hard road of economic and political reform to address the underlying problems that gave rise to his toxic presidency, then there is hope of a brighter day. Fortunately, Joe Biden will assume the presidency on January 20. But it will take more than one person – and more than one presidential term – to overcome America’s longstanding challenges.

WEDNESDAY JANUARY 13, 2021

Companies

WEDNESDAY JANUARY 13, 2021

Asharami Energy appoints Menkiti as COO to drive enhanced production target

sharami Energy, a Sahara Group upstream company, has appointed Henry Menkiti as its Chief Operating Officer to boost ongoing expansion projects aimed at delivering the company’s ambitious production target over the next few years. Henry’s appointment took effect on the 8th December 2020. Asharami Energy is one of Africa’s leading independent exploration and production (E&P) players with a diverse portfolio of nine oil and gas assets in prolific basins across Africa. Ade Odunsi, Executive Director, Sahara Group, and supervising Director of Sahara’s Upstream Division said Henry’s global expertise of over 30 years would transform business operations at Asharami Energy and position the company for its next phase of “competitive and sustainable growth.” “Sahara Group is delighted to have Henry join the Sahara Family as we continue to seek innovative ways of bringing energy to life across the entire

Henry Menkiti

energy value chain. Henry shares our aspiration of transforming the upstream sector in Africa through investment in technology, human capital and emphasis on sustainability,” Odunsi said. Menkiti who will oversee Asharami Energy’s Operations, Corporate Development, Mergers and Acquisitions, Research and Development as well as External

Technology Engagement, said he considered the opportunity to work with Asharami as “refreshing and historic”. “Joining the Sahara Group to oversee the upstream operations is a project I am excited about having worked at different locations across the globe. We have a vision to birth something new in the African upstream

sector and the team at Asharami Energy is set to deliver this with a distinctive mark of excellence,” he added. Prior to joining Sahara, Henry spent 27 years at Schlumberger Limited in a succession of senior leadership positions in Exploration & Production - including Vice President of Schlumberger interpretation services and world-wide Vice President of Schlumberger’s Reservoir Characterization Group. He was also part of the core management team for Schlumberger E&P initiative (SPM). Earlier in his career at Schlumberger, he held various Field & Management positions including Domain Manager at Wireline Headquarters & roles in Seismic Operations. More recently, he was VP, Business Development for LYTT, an upstream subsidiary of BP. He has also been involved in Business Consulting across North America, Latin America, Europe and West Africa.

MS Staffing, BforB host webinar on franchising

uman resources consulting firm MS Staffing, in collaboration with UK-based business networking company BforB International, has organised a webinar on franchising for aspiring entrepreneurs in the country. The virtual event which came off over the weekend was the latest edition of the company’s networking and educative initiative dubbed “SME Talk” which discusses pertinent issues that seek to inspire the growth and productivity of small and medium enterprises. It was held on the theme “Benefits of franchising to the aspiring entrepreneur” to encourage existing and new entrepreneurs to leverage franchising for business growth. Group Managing Director of BforB International and guest speaker, Mrs. Mel Fisher, indicate in her presentation that franchising has been the popular and best-chosen route for every entrepreneur. “It offers the new prospective partner the ability to start a new business swiftly using tested and proven methodology from the franchisor. This enables the franchisee to

generate turnover without having to incur the trial-and-error cost that the franchisor has already paid for,” she indicated. Mrs. Fisher implored entrepreneurs to develop a strong character built around perseverance, discipline, and hard work and also adopt a high

sense of motivation, self-esteem, interpersonal awareness and decision-making to succeed. She also touched on referral marketing; which is a word-ofmouth initiative a business may adopt to incentivise existing customers to introduce their family, friends to the services or

products that they [business] has to offer. For businesses to make the most of referral marketing, Mrs. Fisher tasked entrepreneurs to build reputation and relationship, think proactively and explore the power of their networks.

WEDNESDAY JANUARY 13, 2021

Feature

WEDNESDAY JANUARY 13, 2021

Global Economy to Expand by 4% in 2021 …Vaccine Deployment and Investment Key to Sustaining the Recovery

he global economy is expected to expand 4% in 2021, assuming an initial COVID-19 vaccine rollout becomes widespread throughout the year. A recovery, however, will likely be subdued, unless policy makers move decisively to tame the pandemic and implement investment-enhancing reforms, the World Bank says in its January 2021 Global Economic Prospects. Although the global economy is growing again after a 4.3% contraction in 2020, the pandemic has caused a heavy toll of deaths and illness, plunged millions into poverty, and may depress economic activity and incomes for a prolonged period. Top near-term policy priorities are controlling the spread of COVID-19 and ensuring rapid and widespread vaccine deployment. To support economic recovery, authorities also need to facilitate a re-investment cycle aimed at sustainable growth that is less dependent on government debt. “While the global economy appears to have entered a subdued recovery, policymakers face formidable challenges—in public health, debt management, budget policies, central banking and structural reforms—as they try to ensure that this still fragile global recovery gains traction and sets a foundation for robust growth,” said World Bank Group President David Malpass. “To overcome the impacts of the pandemic and counter the investment headwind, there needs to be a major push to improve business environments, increase labor and product market flexibility, and strengthen transparency and governance.” The collapse in global economic activity in 2020 is estimated to

have been slightly less severe than previously projected, mainly due to shallower contractions in advanced economies and a more robust recovery in China. In contrast, disruptions to activity in the majority of other emerging market and developing economies were more acute than expected. “Financial fragilities in many of these countries, as the growth shock impacts vulnerable household and business balance sheets, will also need to be addressed,” Vice President and World Bank Group Chief Economist Carmen Reinhart said. The near-term outlook remains highly uncertain, and different growth outcomes are still possible, as a section of the report details. A downside scenario in which infections continue to rise and the rollout of a vaccine is delayed could limit the global expansion to 1.6% in 2021. Meanwhile, in an upside scenario with successful pandemic control and a faster vaccination process, global growth could accelerate to nearly 5 percent. In advanced economies, a nascent rebound stalled in the third quarter following a resurgence of infections, pointing to a slow and challenging recovery. U.S. GDP is forecast to expand 3.5% in 2021, after an estimated 3.6% contraction in 2020. In the euro area, output is anticipated to grow 3.6% this year, following a 7.4% decline in 2020. Activity in Japan, which shrank by 5.3% in the year just ended, is forecast to grow by 2.5% in 2021. Aggregate GDP in emerging market and developing economies, including China, is expected to grow 5% in 2021, after a contraction of 2.6% in 2020.

China’s economy is expected to expand by 7.9% this year following 2% growth last year. Excluding China, emerging market and developing economies are forecast to expand 3.4% in 2021 after a contraction of 5% in 2020. Among low-income economies, activity is projected to increase 3.3% in 2021, after a contraction of 0.9% in 2020.Analytical sections of the latest Global Economic Prospects report examine how the pandemic has amplified risks around debt accumulation; how it could hold back growth over the long term absent concerted reform efforts; and what risks are associated with the use of asset purchase programs as a monetary policy tool in emerging market and developing economies. “The pandemic has greatly exacerbated debt risks in emerging market and developing economies; weak growth prospects will likely further increase debt burdens and erode borrowers’ ability to service debt,” World Bank Acting Vice President for Equitable Growth and Financial Institutions Ayhan Kose said. “The global community needs to act rapidly and forcefully to make sure the recent debt accumulation does not end with a string of debt crises. The developing world cannot afford another lost decade.” As severe crises did in the past, the pandemic is expected to leave long lasting adverse effects on global activity. It is likely to worsen the slowdown in global growth projected over the next decade due to underinvestment, underemployment, and labor force declines in many advanced economies. If history is any guide, the global economy is heading for a decade of growth

disappointments unless policy makers put in place comprehensive reforms to improve the fundamental drivers of equitable and sustainable economic growth. Policymakers need to continue to sustain the recovery, gradually shifting from income support to growth-enhancing policies. In the longer run, in emerging market and developing economies, policies to improve health and education services, digital infrastructure, climate resilience, and business and governance practices will help mitigate the economic damage caused by the pandemic, reduce poverty and advance shared prosperity. In the context of weak fiscal positions and elevated debt, institutional reforms to spur organic growth are particularly important. In the past, the growth dividends from reform efforts were recognized by investors in upgrades to their long-term growth expectations and increased investment flows. Central banks in some emerging market and developing economies have employed asset purchase programs in response to pandemic-induced financial market pressures, in many cases for the first time. When targeted to market failures, these programs appear to have helped stabilize financial markets during the initial stages of the crisis. However, in economies where asset purchases continue to expand and are perceived to finance fiscal deficits, these programs may erode central bank operational independence, risk currency weakness that deanchors inflation expectations, and increase worries about debt sustainability.

WEDNESDAY JANUARY 13, 2021

Trade & Maritime

WEDNESDAY JANUARY 13, 2021

AfCFTA: Kasapreko to leverage incentives to produce more for single market

ne of Ghana’s leading indigenous manufacturers in alcoholic and nonalcoholic beverages, Kasapreko Company Limited, has declared its readiness to capitalise on the incentives offered by the African Continental Free Trade Area to produce more for consumers within the continent. Kasapreko is one of the first companies to have registered and exported to a party state under the AfCFTA arrangement after implementation began on the 1st January 2021. It registered and exported its flagship product Alomo Bitters to South Africa, which is a party state that has ratified the requisite AfCFTA protocols. Director in Charge of International Business Development at Kasapreko Company Limited, Francis Holly Adzah, said the incentives presented by the agreement by way of duty reliefs would entice clients and importers in party

states to increase their patronage of Kasapreko products. “When you go to some countries you need to pay the duties on litres which is very huge. Now, it will go down, and distributors would use those funds that they would initially pay duty with, to invest and bring in more products and that is a plus for us,” he

explained. Mr. Adzah said that the incentives provided by the AfCFTA will drive down production cost which will eventually trickle down on prices on shelves across the continent. According to him, the company has shored up its infrastructure and machinery to meet up with

the increase in demand that the AfCFTA has presented. Mr. Adzah said Kasapreko was aware of the stiff competition from its peers on the continent, however, his outfit is confident in the uniqueness of its products and has accepted the challenge to compete. “Alomo is just one of our unique products that meet specific points of need for our consumers. Competition is good and we are well positioned by our packaging, infrastructure to meet the demands of the huge market,” he argued. Kasapreko currently exports to 14 African countries and it is looking forward to take advantage of the single market to boost penetration into other nations that have ratified the AfCFTA protocols. Mr. Adzah has also praised the smooth process experienced during the first shipment of Alomo Bitters under the AfCFTA.

Exports applications under AfCFTA via ICUMS begin the activities related to customs Customs itself. Jan. 18 -- GRA Customs processes under the AfCFTA,” he “People are calling the AfCFTA

he Customs Division of the Ghana Revenue Authority has revealed that the application processes for exports under the African Continental Free Trade Area through the Integrated Customs Management System will begin on Monday, January 18, 2021. The Assistant Commissioner of Customs in Charge of Tariff and Trade and also responsible for Free Trade Agreements including AfCFTA, Fechin Akoto, diclosed this during a discussion on discussion on the implementation processes of AfCFTA trading in Ghana. He also revealed that soon after the application is opened, a portal with necessary information on the AfCFTA including the various tariff offers of the various states in particular product lines will be also published on the ICUMS platform. The Assistant Commissioner, however, stated that Customs are currently assisting the exporters on the necessary processes, as well as all key information regarding trading in the AfCFTA. He urged the trading public, in the meantime to visit the Customs

Technical Services Bureau at the GRA Headquarters in Accra, to obtain answers to all enquiries concerning exports and imports under the AfCFTA. “Meanwhile, we are establishing a desk purposely for

added. Fechin Akoto said while the AfCFTA Secretariat remains a key institution in all things AfCFTA related, when it comes to Customs Processes under the AfCFTA, it is better to visit

Secretariat. Seriously this is not where to go. They should call on Customs. Ministry of Trade will be publishing the necessary contact address to reach us in the newspapers,” he stated.

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Feature

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News

WEDNESDAY JANUARY 13, 2021

Media General Group promises more exciting content

ne of Ghana’s leading media conglomerate, Media General has assured its audience of more exciting, compelling and relevant content across all platforms throughout the year. This was contained in a release signed by the Group Chief Executive Officer, Beatrice Agyemang. “Due to COVID -19, we have seen some very interesting trends reemerging. For example, as viewers reprioritise the importance of family relationships, television has once again become the gathering point for shared social time as the sources of content”, she revealed. The General Manager of MG Television responsible for TV3 Network and Onua TV, Francis Doku, highlighted the his unit’s key activities in 2020 and the target for MG Television this year. He indicated that “last year, we introduced new and exciting content including Family Feud, Date Rush Season 3, Ladies Circle, Simply Showbiz, The Day Show on TV3 Network and Girlz Kasa, Aben Wo Ha, Onua Doctor, Onua Maakye, Kaseibo, Anigye Mmere on Onua TV. This was to get our audience entertained during the lockdown period when people were home”. He added that “as we aspire

to strengthen our position as market leaders and increase our market share, the goal this year is to make TV3 the television station of choice whilst we grow Onua TV to become a force to reckon with amongst television stations broadcasting in local language”. On his part, the Acting General Manager of Media General Radio, Abraham Asare indicated that “2021 marks the fifth anniversary

of Media General Radio. It is a milestone that shall be marked not just in terms of the number of years but most importantly, to demonstrate through impactful programming, that our radio stations; 3FM, Onua FM, Akoma FM in Kumasi and Connect FM in Takoradi have come of age”. On the digital front, the General Manager, Media General Digital, Michael Oti Adjei, said “in 2020, our digital platforms grew

immensely, evolved largely and we now look forward to serving clients better. This year, our content will continue to reflect the quality that we have always been known for and we will also ensure our digital platforms are compelling content channels on their own”. Management of Media Management is convinced of consolidating its gains and solidifying its position as Ghana’s leading media group with renewed optimism to collectively take on the challenges ahead.

Fidelity Bank awards 2020 best performing agents

idelity Bank Ghana has rewarded the 2020 Bank’s best performing agents in five territories; Accra, Western, Northern, Eastern, and Ashanti. S-Duah Enterprise from the Ashanti territory was adjudged the Overall Best Performing Agent for 2020 and was awarded a cash prize and certificate at a ceremony held in Accra. The Fidelity Bank Annual End of year Award ceremony was on the theme: “The Relevance of Agency Banking in a Pandemic (COVID-19)”. Other winners include Tigger Phones, Kcehcs Rehoboth Enterprise and Mupaason Enterprise all from the Western territory. The rest were Mubak Enterprise, Blessed Dabern Enterprise and Peoples Phones and Trading from the Northern

territory; and Antwi F. Ventures, Nyame Nanim Enterprise, and ANB George Ventures from the Eastern territory. Others were Johnson Commerce Point, Wofa Toda Ventures and Adipa Royal Enterprise from the Accra territory; and Kofhay Mobile Money Ventures, Global Excellence Distribution Services and Paul i537 Ventures from the Ashanti territory. Dr David Okyere, the Head of Agency Banking, Fidelity Bank Ghana, said the Bank would continue to improve its Agency Banking Model with an expansion drive to include more agents, new digital improvements and other value-added services. He assured the agents of the Bank’s commitment to providing them capacity building programmes to keep them abreast of the ever-evolving

changes in the financial services industry. “Fidelity will not relent on its commitment to help bridge the gap between the banked and unbanked population in Ghana,” he said. Meanwhile, the Bank has announced the introduction of an insurance scheme for its more than 4,000 agents across the country to protect their businesses against burglary and theft. Mrs Esi Idun-Arkhurst, the Divisional Director, Retail Banking of Fidelity Bank Ghana, said the introduction of the insurance scheme attested to the Bank’s commitment to ensuring the welfare and success of its stakeholders. “We appreciate the efforts and contributions of all agents towards the provision of

convenient financial services and the promotion of financial inclusion in Ghana.” “Within the past six years, our Agency Banking Model has stimulated economic growth, created employment and provided easy access to financial services to many Ghanaians,” she said. She added that the Bank would continue to find innovative ways to provide Ghanaians with convenient methods of banking through digital financial inclusion strategies. Mrs Idun-Arkhurst commended the agents for their hard work and support and assured of new and exciting initiatives for Fidelity Agency Banking in 2021. The bank currently serves its customers in 75 branches across Ghana and is a leader in the digital banking revolution.

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