Business24 Newspaper 2nd October, 2020 by Business24 Online

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FRIDAY OCTOBER 2, 2020

NO. B24 / 108 | NEWS FOR BUSINESS LEADERS

FRIDAY OCTOBER 2, 2020

Bank of Ghana says economy showing signs of rebound

Audit Service says Covid-19 disruption caused audit report delay By Eugene Davis

he Audit Service has attributed delays in sending audited reports to Parliament to the outbreak of the coronavirus pandemic, which disrupted its schedule, and denied accusations by the minority in parliament that the delays were meant to cover up malfeasance by the government. Cont’d on page 3

Dr. McKorley calls for private action on youth unemployment By Patrick Paintsil p_paintsil@hotmail.com

By Nii Annerquaye Abbey abbeykwei@gmail.com

espite Ghana’s economy shrinking by 3.2 percent in the second quarter of the year, the central bank says the economy is on a recovery path as its measure of economic

activity shows positive signs. “High frequency data available to the Bank of Ghana show some green shoots of rebound in economic activity. From the Bank of Ghana’s surveys in August, consumer confidence is bouncing back strongly and is currently

ECONOMIC INDICATORS *EXCHANGE RATE (INT. RATE)

*POLICY RATE

above pre-lockdown levels,” the Governor of the Bank of Ghana, Dr. Ernest Addison, said after the Monetary Policy Committee (MPC) had met to review the health of the economy.

INTERNATIONAL MARKET USD$1 =GHC 5.6734*

BRENT CRUDE $/BARREL NATURAL GAS $/MILLION BTUS

GHANA REFERENCE RATE

15.12%

GOLD $/TROY OUNCE

OVERALL FISCAL DEFICIT

11.4% OF GDP

AVERAGE PETROL & DIESEL PRICE:

Cont’d on page 3

Cont’d on page 2

14.5%*

PROJECTED GDP GROWTH RATE

xecutive Chairman of the McDan Group Dr. Daniel McKorley says private sector business leaders, opinion leaders and other influential persons in society have to contribute to efforts of the government in building a robust entrepreneurial space that offers huge opportunities for jobs and wealth creation for the Ghanaian youth.

0.9% GHC 5.13*

CORN $/BUSHEL

329.50

COCOA $/METRIC TON

$2,620

COFFEE $/POUND:

$109.65

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NEWS/EDITORIAL Editorial / News

MONDAY SEPTEMBER 2020 FRIDAY OCTOBER 14 2, 2020

EDITORIAL Editorial

Pay before boarding order needs a rethink

Tackling youth unemployment is a The new directive for all passengers to pay for their COVID-19 test online before their arrival at Kotoka International Airport has been meet with resentment by airlines and ur tertiary institutions passengers. out passengers an estimated At a churn time when are 250,000 every still coming to graduates terms with the US$150 mandatory year but � GHC only 900� two percent of payment for COVID-19 test upon this number can be absorbed arrival at KIA, the new directive into the public sector by way of has generated more debate. employment creation. Passengers travelling to Ghana The chunk of them are usually will from Tuesday, September 15 seen perambulating fromonline one be required to make office to another search of payments for thein mandatory C O V I D - 1 9 jobs. te s t at Ko to k a non-existent International Airport to If this is the fate prior of the boarding of their flight, a educated then what will be that directive by Frontier of orp athe H ethe a l t hschool C a r e � tdropout he com ny uneducated on theout street? contracted youth to carry the antigen testisat airlines Your guess asKIA--to good asallmine! onEconomists Friday has revealed. and security B y alike t h e have new d i r ethat c t i the ve, experts warned “Passengers are required to show high rate of youth unemployment proof of payment to airlines as a in the country—and like other African economies—is a ticking time bomb because an idle hand is the devil’s work tool they say. Entrepreneurship CONTINUED FROM COVER is obviously

shared responsibility

O Wash your hands 2

Cover your cough 3

condition for boarding of flights country� s COVID-19 testing to KIA.” regime. from seeking for jobs to making T h e n e w d i re c t ive , h a s one TheforCPA� s Chief Executive themselves and their however, been described by Officer, Kofi communities Kapito, at large. said in as airlines as detrimental to the much as the government want to The maiden edition of MEC renewed efforts to stimulate curb imported cases of the the only way out of this canker trained several hundreds of demand for air travel, given that respiratory disease, it must not and to say that there young the entrepreneurs both cash suffice payments remains the burden passenger butincharge are currentlymode a number of what predominant of payment is enough to cover their business and skills development for most Ghanaianinitiatives travelers. that cost not toHamza profit Akoligoh’s from the government-led with and Alhassan passenger. seek change the narrative of AlkoShea picking the ultimate An toairline operator who wishes to remain anonymous, “Look around Africa and you this discourse. price of US$100,000. told Business24 that “The cost is see that what is paid in Ghana for But can the government alone AlkoShea is currently set to already too high and now this the test is the highest. Why bear this cross? The answer is a commission its ultra-modern new policy is also going to be should that be� ” definite “No” butter processing factory implem e n telse e d . weTwouldn’t h e r e a be r e shea He also raised questions about where we find ourselves today. hundreds of Ghanaian traders why and warehouse in Nasia, a small the Noguchi Memorial who travel to buy goodsand to retail The private sector civil Institute town in for theMedical North East Region Research of in the country. society, especially the influential the of Ghana, was andUniversity already providing jobs tonot the “Most of them don�a t very carryvital any made the testing for a and “haves” have youthto in handle his community. electronic payment cards to be reasonable fee but rather a role to play in addressing the At the launch Season 2 of the able to pay online. They should contract givenofto a foreign scourge of youth unemployment challenge,toDr.doMcKorley called have the flexibility to pay cash company what Noguchi in our nation. One such person on other private business leaders when they arrive.” could adequately handle. blazing the trail in that aspect is people in would influential The Consumer Protection and Business24 like position to urge serial entrepreneur Dr. Daniel join theapproach trail and that Business24 Agency � CPA� has also raised atoflexible allows McKorley, founder and executive critical questions about the passengers to either strongly agrees to thispay call.online relativelyof high cost Group. of the or cash arrival. that tackling chairman the McDan We on believe

Through his McDan Entrepreneurship Challenge (MEC), he is shaping the mindset of Ghanaian youth

the teeming employment in our country must be a shared responsibility and the time to act is now.

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

that the desired outcomes are outbreak had transformed their team structures to the new way of achieved and the economy operations, the bank chiefs working in order to maximise brought back on track.” responded that the immediate efficiencies of digital banking, Mr. Awuah� remarks were response was to enforce remote and ensure less-paper operations Continued from scover reinforced by majority of the top working while realigning workers� and requirements for social distancing. In the long run, these bank who journalists responded roles. Dr. executives Addison told measures may result in possible While the majority, 69 percent, to the theMPC survey. respondents at pressThe briefing earlier of respondents indicated that layoffs for some whose jobs advised Bank of Ghanaareto this weekthethat consumers increase stakeholder consultation remote working will become a become automated,” the report beginning to respond positively permanent option going forward, said. in order to propose more to the easing of COVID-19 there was general consensus that Commenting on the findings of beneficial policies. restrictions by government. the new norm will ultimately lead the survey, which was on the This, they said, “Consumers seem will to help be to the shedding of workers whose theme “The new normal� banks� estimate the timelines and extent Dr. Ernest Addison response to COVID-19”, PwC� s responding to the gradual lifting jobs have become automated. to which the policies of the Country Senior Partner, Vish “ M o s t b a n k s i n t e n d t o consumer spending, industrial to the current low forecast, of restrictions—providing some regulator will remain available. permanently incorporate remote Ashiagbor, cautioned that for consumption of electricity, and providing more resources to scope S o m e forr emeaningful s p o n d e n t seconomic s i m p l y working as an option available to workers that survive the digital activities have all help address the impact of the activities. Business confidence thought that there was the need construction p ro g re s s i o n , t hey h ave to staff based on their roles. levels, 12.5� of pandemic. pre-lockdown also but is yet from to reach for increased, detailed guidelines the reached upgrade their skills to remain banks confirmed that they have pre-lockdown levels. 95 while tourist arrivals and port government and BankAbout of Ghana already begun and will continue relevant. activity are gradually Achievable target percent businesses ation surveyed on theof implement of harbour to realign the job roles and work edging upwards. measures put in place optimism, to curb the showed strong impact of the pandemic. Notwithstanding the gradual The Economics Research reflecting the improving change in fortunes, the BoG’s wing of Goldman Sachs, a global macroeconomic conditions, In their view, clear guidance stability in theand exchange was missing, thoughrate, this survey showed that imports, financial institution, in a recent c o u l dinput b e prices, s h a r emoderation d d u r i n g exports, and private sector update to investors said Ghana’s lower stakeholder consultation, they contributions to social security economy will perform better than in lending rates, and positive could not fully embed the new remain below pre-lockdown government’s 0.9 percent GDP industry prospects,” the Governor policies in operational strategy levels. growth projection for this year. said. without a detailed documented Government is betting on the Goldman Sachs said it sees The central bank’s real directive. Composite Index of Economic rebound to push the economy Ghana’s pandemic-hit economy ADVERTISE WITH growth growing at US a rate of 1.2 percent, Activity (CIEA) grew by 3.6 above the 0.9 percent GDP Post-pandemic banking +233 024 212 2742 growth following a stronger-thanpercent in July 2020, compared target for this year. If TEL: comes in higher, that could also anticipated performance from with a contraction of 10.6 percent When asked by the audit firm www.thebusiness24online.net translate into an improvement some key sectors of the economy recorded in May. about how the pandemic� s in government revenue relative in the second quarter. The survey revealed that

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Dr. McKorley calls for private action on youth unemployment Continued from cover “Though successive governments have made some giant strides in tackling youth unemployment with the creation of several opportunities and flagship innovations, government cannot do it all and we will need corporate Ghana to support,” he said at the launch of Season 2 of the McDan Entrepreneurship Challenge (MEC) in Accra. According to the serial entrepreneur, the age-long problem of youth unemployment would intensify if job opportunities remained limited— hence the need for both public and private players to strive to make an impact through the provision of sustainable opportunities for the youth. “Already, the government and the private sector have made some investments in this regard, but more needs to be done and that is why MEC is very important for this country,” he added. The MEC is an entrepreneurial competition that nurtures, grooms and guides innovative

Dr. Daniel McKorley is inspiring Ghanaian youth to move from job-chasers to job-makers with his MEC initiative.

and workable ideas of aspiring entrepreneurs into sustainable and viable businesses to help reduce unemployment among the Ghanaian youth. It is also a strategic platform for empowering the youth to overcome the obstacles of funding and mentorship in their quest to create jobs and expand the economy for wealth creation. The maiden edition trained several hundreds of young entrepreneurs in both business and skills development, with

Alhassan Hamza Akoligoh’s AlkoShea picking the ultimate price of US$100,000. Season 2 will house 80 young entrepreneurs with business ideas across several sectors of the economy, including health, finance, technology and agribusiness. Dr. McKorley said to the contestants: “The secret of this challenge is not the money but the person behind the money. Money doesn’t make business but people make business, and you

must always have that at the back of your mind whilst you remain in this competition.” Director of Business Planning at the Ministry of Business Development, Dr. Gideon Tetteh, commended McDan Foundation for their immense contribution to the nation’s entrepreneurial space over the years and asked other corporates to support the business creation agenda. “Every year, there are about 250,000 graduates each year and government provides 2 percent of jobs. We are of the view that if a lot of people in his position try to follow suit, we would solve the unemployment problem that is facing the nation,” he said. British High Commissioner to Ghana Ian Walker, in brief remarks, described the MEC as a fantastic initiative and pledged his support to the nation’s entrepreneurial cause. “It’s so clear that the future of Ghana is going to come not just from young people but also through entrepreneurship— which is about unleashing the capabilities of Ghanaians.”

Audit Service says Covid-19 disruption caused audit report delay Continued from cover According to a press statement from the service, the coronavirus pandemic disrupted its plans, with some of its staff contracting the virus, hence the delay in meeting the statutory deadline of June 30, 2020 to send the reports to the legislature. The service said the delay could not be blamed on the President directing the Auditor-General to proceed on leave, as asserted by the minority. Furthermore, it said the Acting Auditor-General, Johnson Akuamoah Asiedu, had earlier submitted the audit report on the foreign exchange receipts and payments of the Bank of Ghana for the 2019 financial year, and had in the cover letter informed parliament that reports covering other accounts would delay because of the impact of the COVID-19 pandemic on its activities. The Auditor-General, Daniel Yaw Domelevo, was in June

Acting Auditor-General, Johnson Akuamoah Asiedu

directed by President AkufoAddo to proceed on a 123-day accumulated leave, which was later extended to 167 days after he had written a letter to the president asking him to reconsider his directive. His deputy, Johnson Akuamoah Asiedu, has since been elevated to act in Mr. Domelevo’s stead. The minority’s accusation

against the Audit Service described it as “curious, yet ironic, that the reports of the Auditor-General fell into arrears following the directive by the president to the Auditor-General to proceed on leave”, adding that, “it is the view of the minority that the abrupt and ill-advised decision of the President, in directing the Auditor-General

to proceed on his accumulated leave, was intended to gag the A-G in drawing attention to the many anomalies perpetrated by government.” Minority Leader Haruna Iddrisu had further called on the President to direct the Acting Auditor-General to furnish Parliament with the reports.

FRIDAY OCTOBER 2, 2020

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FRIDAY OCTOBER 2, 2020

Ghana and European Union sign €92.9 million financing agreement

hana and the European Union (EU) have signed two grant financing agreement totalling €92.9 million to support the budget and to prevent electoral violence in the northern border regions. A total of € 87 million out of the amount is under the Emergency EU Budget in Response to the COVID Situation in Ghana and the remaining € 5.9 million will go towards preventing electoral and communal violence in the Northern Border Regions of Ghana. This special emergency budget support is a single disbursement to Ghana. Mr Ken Ofori-Atta, the Minister of Finance, who signed for the government said the funding contributed to the country’s crisis response and would help to address the economic and fiscal impact arising from the COVID-19. He said the support took cognizance of the shortfalls in government revenue and the unanticipated increases in public expenditure. “It is our joint expectation that this facility will bolster the on-going effort of Government to mitigate the effects of the

pandemic, by supporting the private sector, households as well as the most vulnerable,” he said. He said the successful framing of these interventions demonstrate the responsiveness and flexibility imbued in the unique relationship that dated back to 1957. The Minister said as a government, the interest in securing decent standards of living for the people was obvious and it was for this reason that they remain watchful of the transition from the Cotonou Partnership Agreement to its successor

Agreement. “We look forward to a strengthened partnership that will generate mutual benefits in accordance with our shared values,” he added. He said the government was not only planning for the near and immediate term but has developed the Ghana COVID-19 Alleviation and Revitalisation of Enterprises Support (GhanaCARES) Programme. The Programme aims to mitigate the impact of the pandemic and to ensure that the

country quickly emerges from the pandemic with a stronger and more resilient economy. He said the programme envisaged strong actions to improve the private sector environment and provide support to Ghanaian enterprises in targeted sectors to accelerate competitive import substitution and export expansion in light manufacturing. He said to this end, “We have focused on an enhanced role for the private sector, out plan for implementing GhanaCARES seeks the attraction and retention of 70 per cent funding from the private sector sources.” Madam Diana Acconcia, EU Ambassador to Ghana said, “This action shows the EU’s continued commitment to our partnership with Ghana, especially during these challenging times.” She said the support was part of the EU’s Team Europe package that combines resources from the common EU budget, the Member States and EU financial institutions. She said their common objective was to help Ghana respond effectively to the socioeconomic impact of the COVID-19 crisis and put in place mitigating measures.

Fidelity Bank introduces Auto Loan Package for health workers

o complement its various interventions in helping to reduce the negative impact of COVID-19 in Ghana, Fidelity Bank has introduced an auto loan package for members of the Ghana Medical Association. The package provides the members of the Ghana Medical Association, who are at the forefront of the pandemic, with access to brand new vehicles from selected auto dealers at exceptional rates. A statement from Fidelity Bank and copied to the Ghana News Agency on Wednesday said. Mr Julian Opuni, the Managing Director of Fidelity Bank Ghana, was quoted as saying: “At Fidelity Bank, we recognise that there has never been a more critical time to exemplify our brand promise of ‘Together We’re More’ than currently when our frontline workers need our support as they continue to do their best to save lives. “Our auto loan initiative for healthcare workers is our way of appreciating them for their tireless efforts in handling COVID-19

cases.” He added: “Together with our automobile partners, we are taking the necessary steps to provide support to members of the Ghana Medical Association at a time when they are sacrificing so much for our country.” Mr Opuni said Ghana Medical Association members who received their salaries through Fidelity Bank or opted for direct payroll deduction to Fidelity Bank to service the facility, might apply for this wonderful offer to receive special benefits. “Medical workers who apply for this unique facility can opt for an initial repayment holiday to suspend their initial monthly loan repayments for up to three months and start repayments in the fourth month,” he said. Elaborating on the key details of the auto loan offer, Mr Godfred Attafuah, the Director of Personal Banking at Fidelity Bank, said applicants qualified to receive a minimum loan amount of GH¢ 40,000 and a maximum of GH¢ 400,000 to purchase brand new vehicles from Svani Limited,

L-R Julian Kingsley Opuni, Managing Director, Fidelity Bank Ghana Limited; and Dr. Justice Yankson, General Secretary of the Ghana Medical association.

Universal Motors, CFAO, Toyota Ghana, Silver Star Auto, Rana Motors, Alliance Motors, Auto Plaza, and Premium Motors. Dr Justice Yankson, the General Secretary of the Ghana Medical Association, expressed delight at the offer from Fidelity Bank, the statement said. “Fidelity Bank has made it easy for members to finance the acquisition of brand new vehicles at these special rates and accompanying discounts from their auto partners. “We are truly grateful to Fidelity

Bank for prioritising us as well as their commitment and support to all health professionals or workers in the fight against COVID-19,” he added. Fidelity Bank Ghana is the largest privately-owned Ghanaian bank and the fourth largest in terms of assets and deposits. The Bank has two subsidiaries: Fidelity Asia Bank Limited and Fidelity Securities Limited. It currently has 75 branches, about 4000 agents and over 114 ATMs nationwide.

FRIDAY OCTOBER 2, 2020

News

FRIDAY OCTOBER 2, 2020

MTN Foundation brings relief to 300 students through MTN Bright Scholarship scheme

TN Ghana Foundation has presented the final batch of scholarships to 100 students under its Bright Scholarship programme. With this presentation, MTN Ghana has now fully honored its promise of providing scholarships to 300 students within three years. The MTN Bright Scholarship, which was initiated in 2018 was in fulfillment of a commitment MTN made to Ghanaians during the commemoration of its 20th Anniversary in 2016. During the celebrations, MTN, through the MTN Ghana Foundation promised to award a total of 300 scholarships over a period of three years. Already, 200 scholarships have been awarded to students in 2018 and 2019. The final batch of 100 scholarships have been presented for the 2020 edition of the Bright Scholarship scheme. The MTN Bright Scholarship provides badly needed financial assistance to needy and brilliant students in public tertiary institutions. The scholarship covers the cost of tuition, accommodation, a stipend for books and other relevant reading materials for the entire duration of their studies. The MTN Ghana Foundation has over a 12-year period awarded over 1300 scholarships to students

from basic school to the tertiary level. Speaking at a ceremony to present the scholarships to the students at MTN House in Accra, the MTN General Manager for Capital Projects, Mr. William Tetteh who represented the CEO of MTN Ghana at the ceremony said: “Today’s event is a special one. Three years ago, the MTN Ghana Foundation committed to transforming the lives of 300 students through the MTN Bright Scholarship, and today we are here with the last set of students. I’m glad that MTN has fulfilled its commitment and in the cause of the three-year period, we have relieved a lot of parents who had the burden of looking for funds to support their children.” Mr. William Tetteh advised the beneficiaries to take advantage of the opportunity granted them. “This scholarship offers a turning point in your education and you need to guard it by working hard to achieve your goals. As you may be aware, this scholarship does not only give you funding, it gives you peace of mind to pursue your studies. It also connects you to a bigger family – the MTN network. You are connected to an ecosystem of mentors and coaches who can help you achieve your goal.

A Group Picture of Scholarship Beneficiaries from Northern Sector with the dignitaries at the Bright Scholarship Awards ceremony in Kumasi -1

Use these contacts profitably, he concluded.” The Minister of State in Charge of Tertiary Education Prof. Kwesi Yankah, who was the Special Guest of honor thanked MTN Ghana for initiating the MTN Bright Scholarship to support brilliant students further their education at the tertiary level. He said: “The scheme is even more appreciated as it is directed towards supporting the vulnerable and the deprived. We indeed urge the entire private sector to emulate MTN’s gesture in partnering government to fund tertiary education.”

Addressing youth unemployment in Ghana needs urgent action -- new World Bank report

new World Bank report titled “Youth Employment Programs in Ghana: Options for Effective Policy Making and Implementation” identifies agribusiness, entrepreneurship, apprenticeship, construction, tourism and sports as key sectors that can offer increased employment opportunities for Ghanaian youth. It also calls for more investments in career guidance and counseling, work-based learning, coaching, and mentoring to equip young people with the skills needed for work. The report suggests that although these are not new areas, the government could maximize their impact by scaling-up these priority areas in existing youth employment interventions and improve outreach to the youth. “This report is another milestone towards addressing

the unemployment challenge,” said Ignatius Baffour Awuah, Ghana’s Minister of Employment and Labour Relations. “It presents specific options to guide the government in the short to medium-term to enhance effective coordination of youth employment programs.” Ghana is faced with 12% youth unemployment and more than 50% underemployment, both higher than overall unemployment rates in Sub-Saharan African countries. Despite major investments by both government and private sector, this challenge will intensify if job opportunities remain limited. To tackle youth unemployment, the report highlights the importance of having disaggregated data on youth jobseekers by location, gender, skills and capabilities to inform

policy and funding decisions and respond with appropriate and tailored employment programs. “Ghana’s youth employment challenge is vast and requires an all-round, deliberate, and consistent response,” said Pierre Frank Laporte, World Bank Country Director for Ghana, Liberia and Sierra Leone. “Considering the options outlined in this report, future youth employment policy planning should not only address youth unemployment but should also build the human capital needed to sustain Ghana’s economy.” The authors lay out key priorities to promote youth employment in Ghana: • Importance to align formal education programs and skills development initiatives in the context of a fast-changing labor market that requires new and

MTN Bright Scholarship presentation ceremonies were held in Accra and Kumasi and was attended by various dignitaries including Prof. Kwesi Yankah, Minister of State in Charge of Tertiary Education, MTN Foundation Board member Mrs. Nabila Williams, representatives of Vice Chancellors of University of Ghana, University of Cape Coast, University of Mines and Technology, Takoradi Technical University, University of Professional Studies, Accra Technical University and the MTN Bright Scholarship Jury.

different skill sets, and to adapt to new technology. • Partner with the private sector—such as involving employers in the design of training curricula and introducing certifications for occupational standards in order to adapt to the future of work. • Integrate pre-employment support activities as part of the country’s current education system to better prepare young people for the transition to work. • Promote social inclusion initiatives to improve access to credit and management training for women entrepreneurs, as well as improve both infrastructure and equipment available for persons living with disabilities and ensure that no one is left behind. In addition, the report emphasizes the need for greater collaboration among different stakeholders to reduce duplication and fragmentation of youth employment programming. This report is accompanied by an inventory of public job programs in Ghana to inform policy makers and stakeholders on the existing landscape of youth employment programming.

FRIDAY OCTOBER 2, 2020

Feature

FRIDAY OCTOBER 2, 2020

Minding the Digital Economy’s Narrowing Gaps

ILAN – Informational asymmetries between buyers and sellers have long been known to impair market performance. But thanks to digital technology and the large, accessible pools of data that it generates, these informational gaps are closing, and the asymmetries are declining. Until recently, market formation has been circumscribed by physical and geographical boundaries. A prerequisite for a market to form is that buyers and sellers are able to find each other, and this process has traditionally been accomplished in physical spaces like bazaars, stock exchanges, stores, or dealerships (albeit with intermediaries using phones and fax machines to facilitate transactions). Things started to change with eBay, the original model for many online marketplaces. Suddenly, geographical boundaries no longer operated as insurmountable barriers between widely dispersed buyers and sellers. Arguably, freeing markets from geographical constraints has had the greatest impact on market access for remote populations. In many places globally, and for subsets of potential consumers everywhere, online channels can be the only practical option for accessing a wide range of goods and services, including primary health care and education. This applies to both the demand and the supply side. And because consumers enjoy expanded access to goods and services, sellers and producers can scale up dramatically to meet the increased demand. In China, for example, the digital expansion of the potential market for small and medium-size enterprises was a major impetus for much of Alibaba’s development, demonstrating how digital technologies, together with the rapid growth of the mobile Internet globally, can drive more inclusive growth patterns. As online marketplaces developed, however, it soon became clear that additional information issues would need to be addressed for these markets to function effectively. For example, because it is difficult for buyers to detect variations in quality among sellers and among goods and services offered online, more information was needed to capture the reliability or trustworthiness of market participants. The problem is essentially the same for both buyers and sellers, with the former worrying about receiving what she pays for and the latter worrying about being paid. It is precisely this kind of bilateral information asymmetry

Michael Spence

that prevents market formation or limits market exchange in the first place. Hence, a number of digital-payment platforms initially were created to address online markets’ fundamental “trust” problem. Following the model of escrow systems that are familiar in real-estate transactions, e-commerce platforms created intermediaries that they hoped would be trusted to collect and hold payments from buyers until delivery of the goods or services had been confirmed. In the case of Alipay in China and Mercado Pago in Latin America, these systems were initially designed to accelerate the uptake of e-commerce platforms, but over time evolved into mobile-payments systems used offline and throughout the entire economy. This process is very advanced in China, while cash continues to hold on in Latin America. Not only have these systems yielded a growing trove of tremendously valuable data, but they have also allowed market-making platforms to become more powerful with each transaction, as the data accumulates. Ratings of sellers (and sometimes buyers) and products are now a common feature of online marketplaces, and studies indicate that they are highly influential in buyer decision-making. But for this function to serve its proper purpose, the platforms needed to develop additional systems and safeguards to prevent ratings manipulation, and to stop banned users from reappearing under a new handle. Thus, in addition to closing information gaps, ratings also create incentives for market participants to behave better. As more and more “stuff” appeared in online marketplaces, users starting having difficulties finding what they were looking for, because they could not browse through options in the same way that one does when shopping in a physical store. To address this issue, online platforms developed search algorithms and

recommendation engines based not only on individual users’ browsing and purchase history, but also on behavioral data from all other users. These algorithms have been further improved by advances in artificial intelligence and increases in the volume and quality of data. Search and recommendation engines are a partial solution to the “matching problem,” and thus a key source of online market performance. They add value for both buyers and sellers, and boost transaction volume substantially, especially for lesser-known sellers and brands. Moreover, because it is widely available and inexpensive to access, online information has reduced information asymmetries beyond the realm of e-commerce. For example, markets in automobiles, health care, and insurance have also been transformed, even in the offline world, leaving consumers better informed and more empowered vis-à-vis sellers. A final informational challenge relates to access, specifically giving consumers accessible online identities and tracking records that signal their attractiveness as counterparties in a variety of market settings. Credit is a good example. In the offline world, people and businesses have track records and financial histories that hypothetically could be used to underpin credit or insurance markets. The problem is that these offline records tend to be scattered and inaccessible, whereas in the digital economy – especially following the high penetration of mobile payments and e-commerce – they become easily retrievable and far more useful. Like knowledge, data is non-rival: using it does not diminish its value for further use or for use by multiple parties. AI algorithms can be deployed to assess and price credit for people and businesses with no collateral and little prior contact with the traditional non-digital

economy and financial sectors. As in platform-based evaluation systems, informational gaps are reduced and incentives are improved, while market access is expanded for households and small businesses. In short, data-driven digital markets have evolved from struggling with informational gaps to having higher informational density than their offline counterparts, leaving fewer information gaps and asymmetries. The accessibility of digital data allows for new screening mechanisms and signaling behavior that are frequently missing in the offline world. Of course, highly accessible stores of data come with own real and much discussed risks, and these must be addressed in order to achieve the potential efficiencies and inclusivity benefits on offer. After all, the institutions (including governments) that collect data and act as digital gatekeepers must be trusted, too. At a minimum, they must be subject to enforceable regulation that provides clear definitions of individuals’ rights with respect to transparency, data use, privacy, and security. Here, arguably, we are making progress, but we still have a long way to go. Michael Spence, a Nobel laureate in economics, is Professor of Economics Emeritus and a former dean of the Graduate School of Business at Stanford University. He is Senior Fellow at the Hoover Institution, serves on the Academic Committee at Luohan Academy, and co-chairs the Advisory Board of the Asia Global Institute. He was chairman of the independent Commission on Growth and Development, an international body that from 2006-10 analyzed opportunities for global economic growth, and is the author of The Next Convergence: The Future of Economic Growth in a Multispeed World.

FRIDAY OCTOBER 2, 2020

Feature

FRIDAY OCTOBER 2, 2020

When to outsource

By Faisal Ibrahim Cisse ESQ. (AMABE, BBA, LL.B) Introduction Supply Chain Management (SCM) involves all the processes that begin with suppliers and ends with customers. All the activities that involve the buying and bringing into the firm raw materials, transforming the raw materials into products, and delivering products to customers are part of SCM. It is every activity that delivers value to the customer. To give a classical example, to produce pineapple juice for sale, the company must plan and procure pineapple fruits from farmers, carry the fruits into the factory, squeeze the fruits, put the juice into packages, transport the packs of juice to the market and then sell them to customers. Every process described is part of the supply chain. According to the Council of Supply Chain Management Professionals (CSCMP), SCM covers the planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities. To gain a competitive advantage, Michael Porter (1985) stated that a company must analyse its five supply chain processes. They are inbound logistics: activities associated with receiving, storing, and disseminating inputs to the product; operations: activities associated with transforming inputs into the final product form; outbound logistics:

activities associated with collecting, storing, and physically distributing the product to buyers; sales and marketing: activities that induce buyers to purchase a product and enable them to buy it; and service: activities associated with providing service to enhance or maintain the value of the product. It is important to carefully analyse all the processes involved to ensure there is a free flow of inputs, information, products, and services to obtain a competitive advantage. It is unusual for a company to conduct all these processes on their own. Even going by the example of the pineapple fruit juice processing above, it may be that the transportation of the pineapple juice into the factory may be provided by another entity. Dellâ&#x20AC;&#x2122;s make-to-order model has been described by others as the best supply chain management model. Dell supplies customised computers to customers across the globe by taking their specifications and sending such requests to their supply chain network for production and delivery to the customer. What is outsourcing? Outsourcing can be described as the transfer of a business function initially performed internally by an organisation to an external entity, who are specialists in the provision of that particular service. Today, many global firms are regarded as brand managers because they

no longer actually manufacture their products or services. Products from brands like Apple, Dell, Nike, and so on are largely produced by external companies. The business function could be any of the activities in the supply chain of a company. Functions that are normally outsourced include finance, logistics, accounting, design and engineering, research, manufacturing, security, and so on. A careful analysis of the supply chain must be undertaken to identify the appropriate function to be transferred. Businesses outsource their functions for many reasons including the following: i. Cost savings: Helps the buying company to reduce the cost of running the function internally especially in labor and investment cost. ii. Secure expert services: Gives the buying company access to expertise in an area the business does not have or may spend a lot to develop internally. iii. Greater focus: Outsourcing business functions give the company space to focus on core activities. For instance, an IT company that provides computer program solutions may like to focus on developing technical innovations instead of bothering itself about staff welfare matters or accounting functions. iv. Ability to meet varying demands: Businesses receive changing demands which may require a change in business processes. Instead of investing in changing the processes, outsourcing creates an

opportunity to meet the varying demands. When the business function is outsourced to an entity located outside the national boundaries of the buying company then we say that is offshoring. But it is nearshoring if the company is within the national boundaries. Outsourcing offshore adds unfamiliar complexities to outsourcing management including culture, cost of currency exchanges, logistics, and so on. When to outsource Before a decision is taken to outsource any business function, an in-depth analysis of the entire supply chain must be conducted. The purpose of the analysis is not to only identify the core functions but to identify the functions performed poorly internally. Core functions are those activities that lie at the heart of the company. It is usually the activity that the company has a competitive advantage or proprietary ownership. It is the process that the organisation is good at doing. The Chartered Institute of Purchasing and Supply (CIPS) has stated that in general, it does not believe in buying businesses outsourcing their core activities. According to the body, if a company must outsource its core activities then care must be taken so that it is not isolated from the provision of those services. For instance, Canon internally uses its core competencies in Research and Design and product design to create the worldâ&#x20AC;&#x2122;s best printers, cameras, and so on.

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FRIDAY OCTOBER 2, 2020

Feature / News

CONTINUED FROM PAGE 11 Other activities in producing these products are outsourced. The analysis will expose the important functions but not the core. For instance, a customer who buys cartons of soap from a supermarket does not care if the product was delivered to the shop by a big truck, a saloon vehicle or a motorbike or a vehicle owned by the producer. So, a company should outsource when: 1. Cost/Time Analysis: When it becomes apparent that the time and cost to conduct a business function has become unreasonably high. That means it takes a longer time to perform a process that is non-core or it is expensive in terms of labor or capital investment outlay. The analysis may show that the same process could be conducted by specialists organisations in a timely and lower-cost manner. Then management must consider outsourcing such processes. 2. Increase in organisational capacity: The analysis may show the areas that the business cannot deliver superior service. It may be too expensive to develop or invest in that area. Outsourcing becomes a good option for management to consider. 3. Particular task drains

FRIDAY OCTOBER 2, 2020

resources- A company can perform a particular function. However, performing the function inhouse may take up major resources of the company like labor, capital, and so on. This may be a good time to consider outsourcing it. 4. Specialist skills: There are instances some demands or products require a specialist skillset that is unavailable within the organisation. For instance, in the area of logistics. Many companies do not have inhouse expertise in dealing with clearing goods, warehousing, transportation, shipping, paying customs duties, and so on. They rely on specialist organisations to provide those services for them. Third-party logistics companies are available to provide such services. Their expertise in the area can give many value-added services to the buying company. 5. Growing fast: Customer demands may have increased, requiring an increase in the production capacity or some business practice. The business may want to scale but does not have the resources to meet the increment in sales. It could even be that the number of phone calls to the company has increased. Business growth may require an outsourcing solution to meet the demands.

6. Need for time to strategiseIt is normal for managers to be consumed by day to day operations of the business. But managers must also think about the overall strategy of the business. Strategy is what makes a business competitive in the market. To achieve this, the business can outsource non-core activities to give the managers space to get strategic. When the decision is made to outsource, the next important step is choosing an outsourcing provider. The business must be guided by its strategic plans and what it seeks to achieve from the outsourcing arrangement. And the objectives must be clear, and the same must be communicated to the outsourcing provider. The current metrics of performance in the business must be well assessed and documented. A monitoring mechanism must be put in place to ensure the outsourcing provider is meeting the targets, else corrective measures are adopted. The choice of a service provider should depend on a fine balance between the quality and cost of the service. The experience of the provider in offering similar services to others in the industry will be a good factor to consider. The more experienced they are,

the more value-added service they bring to the business. Conclusion SCM encompasses all the activities that start from suppliers and ends with customers. To secure a competitive advantage, a company must ensure its value chain works well to serve value to customers. Outsourcing is a process of transferring any of the supply chain activities to an external company. A company should consider outsourcing when the situations stated above arises. The company should retain the function that is its core activities, which they are good at. The author is an Accra based private legal practitioner with a special interest in international business, international trade law, and international commercial and investment arbitration. He is overly optimistic about the ideals and objectives of the African Continental Free Trade Area (AfCFTA). He is also an Associate Member of the Association of Business Executives (UK) and a member of Young International Council for Commercial Arbitration (ICCA), a world-wide arbitration knowledge and skills network for young practitioners.

FBNBank relaunches Ring Road Central branch

BNBank Ghana Limited, a subsidiary of First Bank of Nigeria Limited, has relaunched its Ring Road Central branch, located opposite Meridian House. Welcoming guests to the event, the FBNBank Ghana Managing Director, Victor Yaw Asante announced the introduction of the bank’s Premium Banking service, which he revealed would be available at the Ring Road Central, Airport and Kaneshie branches. According to Mr. Asante, “FBNBank Premium Banking is an invitation only banking experience that allows us to provide dedicated service to our discerning High-Value customers who desire a complete range of personalized, differentiated banking products and services designed to provide absolute convenience and relevance to them.” He disclosed that there is a range of benefits available to FBNBank Premium Banking customers both locally and when they travel across the six Sub Saharan African countries where its parent, First Bank of Nigeria Limited had subsidiaries as well as in the United Kingdom and France. The FBNBank Ghana MD

Victor Yaw Asante, FBNBank Ghana MD addressing the audience

recounted the brand’s depth of experience and sound financial knowledge spanning 126 years which “makes us constantly interact with customers to understand their needs. Based on this understanding, we have provided tailored products and services to suit these needs in our quest to seek relevant ways of growing our customers, ourselves and our business. It is as a result of this that our brand has become a constant financial partner to our customers.” Mr. Asante stated that FBNBank

Ghana is pursuing a digital agenda, which leverages new and evolving technologies, to facilitate access to everyday financial services for consumers and businesses. This, he indicated, culminated in the opportunity presented to the bank’s customers to make real time financial transactions using *894# Quick Banking, FBNMobile, Online Banking and Agent Banking. While revealing that FBNBank Ghana will turn 25 years in Ghana in 2021, the Managing Director noted that “the bank will continue

to strive to endear the FBNBank Ghana brand to our customers through delivery of excellent financial services that meet the needs of the bank’s customers.” The second Deputy Governor of the Bank of Ghana (BoG), Mrs. Elsie Addo Awadzi, who was the Special Guest of Honour at the event congratulated the management and staff of the bank on this milestone. She noted that since FBNBank’s entry into the Ghanaian banking space in 2013 through the acquisition of International Commercial Bank (ICB), the bank has consistently increased its foothold in the industry, as well as its impact on the economy. “I commend the board for its oversight role and its commitment to growing the business of the bank in a sustainable and sound manner riding on the back of strong financial performance and customer satisfaction,” Ms. Awadzi said. She said the opening of the branch in the midst of the COVID-19 pandemic, which had increased the operational cost of the bank across the country was a demonstration of FBNBank’s commitment to be actively supportive of the customers and the country’s development.

FRIDAY OCTOBER 2, 2020

Feature

FRIDAY OCTOBER 2, 2020

The Redistribution Games By Yanis Varoufakis

he Olympic 100-meter final is about to begin. The crowd roars at the sound of the starting gun. The sprinters are off. But, after 30 meters, the frontrunners slow down, as if in solidarity with the laggards. They have not chosen to do so, but new rules set strict limits on the maximum distance separating the winner from the last-place finisher. Conservative opponents of income and wealth re-distribution have this kind of analogy in mind when they lament the “politics of envy.” They envision the rich as sprinters that do-gooders want to slow down by law and through punitive taxes. But life is not the Olympics, where talent and training determine an athlete’s performance. It’s more like a Roman arena in which well-armed gladiators vanquish unarmed victims who lose not because they did not try hard enough, but because of the asymmetrical initial distribution of armor.1 In the 1950s and 1960s, hard work and an innovative mind could perhaps be relied upon to lift people from poverty and propel them upward. But that was possible only because society imposed constraints on what the ultra-wealthy, bankers especially, were allowed to do with their money. Since those constraints were removed, with the collapse of the Bretton Woods system and the ensuing financialization of our economies, working long hours and showing immense flair may get one nowhere. The problem facing most people, especially the young, is not that superstars like Warren Buffett are leaving them behind. It is that they are being held behind by stagnant investment and wages, owing to the simple fact that the wealthy get wealthier almost in their sleep, for reasons that have nothing to do with effort, entrepreneurship, or parsimony. Even the great innovators are part of the problem. Jeff Bezos had foresight, revolutionized retail, and made a fortune. But what part of his $200 billion is a reward for his smart thinking and entrepreneurship? And what part of his current wealth is simply a function of his previous wealth? While it is impossible to answer such a question precisely, the greatest proportion of the world’s wealth does not find its way to society’s innovators or maintainers. As wealth

Yanis Varoufakis, a former finance minister of Greece, is leader of the MeRA25 party and Professor of Economics at the University of Athens.

accumulates in few hands, the rest of the economy gradually becomes a desert. This is not news. We have always known that exorbitant market power underpins exorbitant wealth, which then feeds back into even greater market power. And this is the crux of the matter: Nothing retards productivity and depresses employment as efficiently as exorbitant market power. To invoke the conservative analogy, not even the fastest runners can win when the wealth commandeered by the ultra-rich turns the track into sand for everyone else. That’s why the most soul-destroying poverty and the largest number of “deaths of despair” are observed in countries where wealth concentration is soaring. What should we do about highly concentrated wealth? How do we redistribute it fairly and efficiently? A wealth tax is much in vogue today. But no legally and politically feasible wealth tax can reduce substantially the current levels of crushing inequality. Moreover, it enables conservatives to cast doubt on wealth redistribution by asking pertinent questions: Should the state evict the poor heir of a good house if she can’t afford to pay the wealth tax? How do we price an asset, such as a stamp collection, without first auctioning it off? Fortunately, there are proven ways to redistribute wealth without violating anyone’s

rights or crossing ethical lines. In 1906, Theodore Roosevelt famously broke up Standard Oil and other cartels despite a chorus of opposition bemoaning his attack on innovation and entrepreneurship. Following the 1929 Wall Street collapse, another Roosevelt, Franklin Delano, faced the same chorus when he put the financial genie in a bottle. With these two moves, the Roosevelts effected a redistribution of wealth and power that nothing short of a revolution could accomplish. Of course, the powerful find ways to shake off such shackles. After the Bretton Woods system collapsed in 1971, Wall Street and the cartels began to dominate again. Today, three megafirms, BlackRock, Vanguard, and State Street, own at least 40% of all American public companies and nearly 90% of those listed on the New York Stock Exchange. Tacit collusion is rampant, because every CEO knows that the parent megafirm is likely to be talking to CEOs of rival companies that it also owns. The result is higher prices, less innovation, lower investment, and, naturally, stagnant wages. Power was further concentrated after Wall Street imploded in 2008 and central banks began to pump rivers of money into the financial system. Levering up the central bank money, the gargantuan cartels used this liquidity to invent new forms of complex debt and to buy back their own shares, sending share prices (and, naturally, bonuses) into the stratosphere

while starving the world of investment in quality jobs and green infrastructure. Megafirms also indulged in another favorite pastime: usurping markets, buying politicians, and capturing regulators – in short, poisoning liberal democracy. By the time COVID-19 sent the real economy further into depression, the world of finance had decoupled fully from the real economy, turning capitalism into a type of techno-feudalism. To end this regime, we must update the two Roosevelts’ interventions. Instead of wasting energy on an ineffective wealth tax, progressives should concentrate on a three-pronged strategy. First, central bank money must be exclusively directed to support public investment in the green transition and other public goods. Second, corporations that monopolize large marketplaces of their own making – as, say, Amazon and Facebook have done – should be broken up. Lastly, a proportion of large corporations’ shares (perhaps 10%) should be deposited into a social equity fund to fund a universal basic dividend. This combination of policies, drawing inspiration from antitrust and New Deal legislation of yesteryear, could revive the economy, revitalize democracy, and save the planet. If political economy were an Olympic event, the gold-medal favorite would be clear.

FRIDAY OCTOBER 2, 2020

Markets

FRIDAY OCTOBER 2, 2020

WEEKLY FINANCIAL MARKET UPDATES 25th September, 2020

GHANA CEDI INDEX

LOCAL BENCHMARKS

Year Open

Week Open

Week Close

Change

YTD

501.5071

523.3843

518.5485

-4.8358

3.40%

WEEKLY INTERBANK FOREIGN EXCHANGE RATES

14.5%

Inflation August ‘20

10.5%

Fiscal Deficit target ‘20

11.4%

Inflation Target ‘20

11.5%

GDP Growth Target ‘20

0.90%

GDP Growth Q2 ‘20

-3.2%

EQUITY TURNOVER

Currency

Year Open

Week Open

Week Close

Change %

YTD

USDGHS

5.5337

5.7001

5.7020

0.03%

3.04%

GBPGHS

7.3164

7.3847

7.2413

-1.94%

-1.03%

EURGHS

6.2114

6.7588

6.6252

-1.98%

6.66%

15%

BOG – Policy Rate

Year-to-Date Performance of Cedi

10%

Day

Volume

Value GH¢

GSE-CI

Mon

1841.4

Tues

5,836,218

3,736,899.0

1841.4

Wed

158,206

158,388.6

1841.4

Thurs

506,936

69,099.2

1834.5

Fri

25,666

6,634.1

1834.5

6,513,383

3,971,020.8

TOTAL

5% WEEK END PRICE GAINERS AND LOSERS

Ticker

-5% -10%

GBPGHS USDGHS

-15% -20%

EURGHS

Open GH¢

Close GH¢

G/L GH¢

% Change w/w

SCB

13.53

13.55

0.02

0.15%

ETI

0.07

0.06

-0.01

-14.29%

2 132129 6 1424 3 122030 7 1624 5 1321 1 9 1725 3 132129 8 1725 2 1018 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20

Jul-20

TREASURY SECURITIES RATES (PRIMARY MARKET) Security

GSE Indices

Aug-20 Sep-20

Current Coupon %

Previous Coupon %

Change w/w

Year Open Rates

91 Day Bill

14.036

14.006

0.030

14.67

182 Day Bill

14.148

14.122

0.026

15.17

364 Day Bill

16.987

0.000

17.83

2yr Fixed Note

18.250

0.000

19.50

3yr Fixed Bond

19.000

0.000

19.50

5yr Fixed Bond

19.250

0.000

16.50

6yr Fixed Bond

19.500

0.000

21.00

7yr Fixed Bond

20.000

0.000

16.25

10yr Fixed Bond

19.800

0.000

17.50

20yr Fixed Bond

20.200

0.000

20.20

-5% -10% -15% -20% -25% -30%

GSE-CI

GSE-FI

COMMODITIES (PRICES FOR THE WEEK ENDING 18/09/2020 Year Open

Week Open

Oil Brent Crude (USD/bbl)

66.0

43.2

41.92

-1.2

-36%

Gold (USD/t oz)

1,523.1

1,950.9

1,861.6

-89.3

22%

Cocoa (USD/MT)

2,540.0

2,641.0

2,568.0

-73.0

20%

Coffee (USD/lb)

129.7

113.5

113.7

0.2

-12%

18%

Sugar (USD/lb)

13.4

13.5

0.1

16%

Rice (USD/CWT)

13.3

12.5

-0.1

Yield Curve on Government Securities

22%

Commodities

Week Close

Diff (w/w)

YTD

14% 12% 10%

91 Days

182 days

1yr Note

2yr Note

3yr Bond

5yr Bond

6yr Bond

7yr Bond

10yr Bond

20yr Bond

28-Sep-20 14.04% 14.15% 16.99% 18.25% 19.00% 19.25% 19.50% 20.00% 19.80% 20.20%

Analyst(s): Ruth Atobrah | Emmanuel Ayim-Ahiably: NDK Capital Research | research@ndkcapital.com | www.ndkcapital.com | 0302 218 423

CONTINUED ON PAGE 19

FRIDAY OCTOBER 2, 2020

Markets

FRIDAY OCTOBER 2, 2020

CONTINUED FROM PAGE 17

WEEKLY FINANCIAL MARKET UPDATES 25th September, 2020

CURRENCY, COMMODITY, AND EQUITY MARKETS UPDATE CURRENCY UPDATE At the end of the week, the composite gain value of the Ghana cedi pushed the cedi Index down by 4.84 points to close at 518.55 points, at a 3.40% YTD loss. The Cedi strengthened in the week under review after gaining against its major trading counterparts. The Cedi appreciated by 1.94% and 1.98% to the Sterling and Euro respectively. The Cedi however depreciated marginally by 0.03% against the US dollar. The Cedi closed the week, trading at a midrate of USDGHS 5.7020 to the US dollar, GBPGHS 7.2413 to the British Pound and EURGHS 6.252 to the Euro. COMMODITIES MARKET UPDATE The price of Gold slumped at the end of the week amid a strong US dollar. The yellow metal closed the week at USD 1,861.6 after losing USD 89.3 from the previous week’s price at a year-to-date return of 22%. Brent price decreased at the end of the week under review as surge in virus cases cloud demand recovery. Brent decreased by USD 1.2 from the previous week’s price to close at USD 41.2/bbl at the end of the trading activity. This pushed the YTD loss to 36%. Cocoa recorded a USD 73 decrease in price to end the week at USD 2,568/mt. EQUITY MARKET Trading activity on the Ghanaian stock exchange increased as volume and value traded soared. A total of 6.51mn shares valued at GHS 3.97mn exchanged hands compared to 1.71mn shares valued at GHS 2.97 last week, indicating a 34% increase in value traded. The year-to-date market index ended the week lower as the benchmark index decreased by 0.37%, due to value loss recorded in shares of ETI. The benchmark index closed the week at 1834.5 points at a year-to-date loss of 18.73%. Scancom Limited (MTNGH) was the most traded stock, accounting for 80% of the total value traded at the end of the week. At the close of the week’s trading, there were 2 movements in prices and 38 stocks remained unchanged in prices.

LOCAL BUSINESS NEWS

No room for further policy rate cuts in 2020 – EIU The Economist Intelligence Unit (EIU) says there is no room left for a policy rate cut in the remainder of the year, as the central bank announces its penultimate monetary policy interest rate decision for 2020 today. The central bank last reduced its policy rate in March, by 150 basis points to 14.5 percent, as part of measures to mitigate the impact of the coronavirus pandemic on the real sector. The rate has since been left unchanged despite inflation remaining volatile within the period. read more World Bank approves US$125million for GAMA SWP project The World Bank Board of Executive Directors has approved US$125 million from the International Development Association for the Greater Accra Metropolitan Area Sanitation and Water Project (GAMA SWP). This additional financing will support the Government of the Republic of Ghana’s effort to reach 550,000 people in low income urban communities of the Greater Accra Metropolitan Area (GAMA) and the Greater Kumasi Metropolitan Area (GKMA) with improved sanitation and water supply services. read more Ghana’s debt stock up by GHS43.5 billion Ghana’s total debt stock has gone up again. According to the latest Summary of Macroeconomic and Financial Data from the Bank of Ghana, the total public debt stock which started the year at GHS219.6 billion, saw an accumulation of GHS43.5 billion in seven months. This brings the total debt at the end of July 2020 to GHS263.1 billion. The total amount of fresh debt accumulated in the first seven months of the years 2016, 2017, 2018 and 2019 stood at GHs8.7 billion, GHS11 billion, GHS21.8 billion, and GHS28.9 billion respectively. read more

INTERNATIONAL NEWS Final UK-EU trade talks begin this week as officials race to seal a Brexit deal EU and U.K. officials are about to start what’s meant to be the final round of Brexit trade negotiations before a self-imposed deadline of Oct. 15. Talks have been stalled over competition rules and fishing quotas for months now, but British officials have signaled there may have been some “positive” developments in the last few days. read more

Source: Bloomberg, Reuters, CNBC, Ghanaweb, Citi business news, Doobia, BOG, CSD. Analyst(s): Ruth Atobrah | Emmanuel Ayim-Ahiably: NDK Capital Research | research@ndkcapital.com | www.ndkcapital.com | 0302 218 423

FRIDAY OCTOBER 2, 2020