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MONDAY, FEBRUARY 3, 2020

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Stop UNIPASS takeover of ports— IMANI to Gov’t

Airbus record £3bn bribery settlement saga: What you should know about Ghana’s involvement A UK court last week sanctioned the £3bn fines after Airbus admitted using agents across the globe to bribe officials to land high-value contracts in 20 countries including Ghana. According to UK-Based Guardian, which initially reported the issue,

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Donor funds to Ghana’s education sector up by 200% BY BENSON AFFUL Donor support to Ghana’s educational sector has increased by 200 percent for the 2020 fiscal year. Out of the approved GHC 13.3billion (US$2.4billion) educational sector budget for 2020, donor support constitutes GH¢911million (US$163million) The donor support represents an increase of 204 percent over the previous year.

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KEY INDICATORS POLICY RATE (%) 16.00 INFLATION TARGET (%) 8.0 ± 2

Currency US Dollar Pound Sterling Euro ECO

Buying 5.4645 7.1885 6.0458 0.0570

CURRENT INFLATION RATE (%) 7.9

Trade Remedies: What does Ghana stand to benefit from its application? PG7

Danish medics in Ghana to explore opportunities in health sector PG8

Shippers' Authority pays courtesy call on FDA, GUTA President PG11

91-DAY TREASURY BILL RATE (%) 14.1740

THE

Selling 5.4699 7.1962 6.0493 0.0570

U PF RO NT

BUSINESS24 MONDAY, FEBRUARY 3, 2020

EDITORIAL Media must reflect Africa’s brighter outlook

Stop UNIPASS takeover of ports—IMANI to Gov’t

he Africa Development Bank’s (AfDB) African Economic Outlook 2020 shows a brighter outlook for the continent. Africa’s real GDP growth, estimated at 3.4 percent for 2019, is projected to accelerate to 3.9 percent in 2020 and to 4.1 percent in 2021. Indeed, the African-oriented institution notes that six economies on the continent are among the world’s 10 fastest growers: Rwanda, Ethiopia, Côte d’Ivoire, Ghana, Tanzania, and Benin. “Growth’s fundamentals are also improving, with a gradual shift from private consumption toward investment and exports. And for the first time in a decade, investment accounted for more than half the continent’s growth, with private consumption accounting for less than one third,” the AfDB noted. These strides require a strong media focus and specialized kind of journalism that mainstreams all facets of the economy that affect millions of people on the continent. The story ought to be told in a strong business-like manner but with a tone that resonates with the larger population and brings the art of business journalism closer to the people. It is this quest that has birthed a new business-oriented media, which is focused on business content creation for its partner print and electronic media houses; a pan-Africa digital business newspaper; and a strong pan-Africa monthly business magazine. The maiden edition of Business24 Digital Newspaper-- which will be published thrice (3x) weekly-- covers sectors such as pharmaceuticals, mining, aviation, trade & investment, banking, Parliamentary business, tourism, energy, education, automobile and real estate among others. This is a refreshing digital publication that is designed for business and engineered to last. We will work hard to meet our readers’ current and future expectations. Enjoy this edition. Business? We ‘ve got it!

olicy think-tank, IMANI Africa, has questioned why the ministries of Trade and Industry and Finance are bent on replacing the existing reliable customs and ports technologies with UNIPASS— an expensive and untested ports valuation system. “Our advice to government will be to shelve UNI-PASS until its promoters have demonstrated value far and above existing systems. It is not even smart to undertake such a major valueless project with potential to severely disrupt trade and revenue flows,” IMANI Africa indicated in its advisory letter to the ministry of trade and industry. The think-tank alsoA questioned: “Given that the two systems—WestBlue and GCNet—took two years to integrate and work cohesively, it is a wonder how long the transition period would be for UNI-PASS, whose credentials in the space are still unknown to integrate the existing system, if at all necessary?. The existing paperless system at the ports—run by WestBlue Consulting Limited and GCNet-- has not only resulted in increased revenues for the

LIMITED 24/7 BUSINES NEWS & INSIGHTS To advertise, or subscribe in print and online CT 10156 Cantonments, Accra, Ghana

state but has also positioned the country as a major trade facilitator across the sub-region. Records from the Ghana Revenue Authority (GRA) show that port revenue has risen steadily from GH¢7.5billion in 2015 to GH¢12.01billion since the introduction of the National Single Window or the paperless port regime. Last year, proceeds from the port moved up by 15percent over that of the previous year, even after a reduction in benchmark values on imported vehicles and general goods by 35percent and 50percent respectively. In March 2018, Ghana Link Network Services Limited, in collaboration with Customs UNI-PASS International Agency (CUPIA) of Korea Customs Services, was contracted by the Trade Ministry to introduce UNI-PASS to the ports system for ten years at a cost of $40m. The deal was however suspended prior to take-off by the Economic Management Team (EMT) due to the inability of the promoters to demonstrate superior value and integrity of their technology as well as a unanimous rejection by port users. IMANI Africa noted that the: “Economic Management Team (EMT) in December 2018 to examine the implications for

adopting UNI-PASS on the turnaround times and the costs to users and the government. After listening to all major ports stakeholders, the EMT suspended the implementation of UNI-PASS until August 2019 due to the inability of the promoters to demonstrate superior value and integrity of their technology. “In spite of media reports that Cabinet had approved the UNI-PASS deal just a month after the EMT’s directive for an 8-month suspension, there has been no change in the factors that suspended UNI-PASS. However, its promoters and assigns are erecting valuation equipment at some of our borders alongside those of more reliable GCNet (remember government owns 35% of GCNet). The policy think-tank is also concerned about the financial implications of the UNIPASS deal on the economy in terms of judgment debt. “It appears government would not be worried paying judgment debts to GCNet and West Blue for simply cancelling their more reliable, tested, efficient and less expensive systems. In fact, UNI-PASS has been sued by West Blue for intellectual property breaches- essentially copying their software illegally.

Editorial: Dominic Andoh: E ditor Eugene Kwabena Davis: Head of Parliamentary Business & Commodities Benson Afful : Head of Energy & Education Patrick Paintsil : Head of Maritime & Banking Eliezer Mensah: Head of Production Marketing: Alexander Lartey Agyemang: Business Development Manager Gifty Mensah: Snr. Marketing Consultant Irene Mottey: Snr. Marketing Consultant Edna Eyram Swatson: Snr. Marketing Consultant Ruth Fosua Tetteh: Snr. Marketing Consultant Events: Evelyn Kanyoke Snr. Events Consultant Accounts Joseph Ackon Bissue: Accountant Operations: Ampomah Akoto: Director of Operations

Donor funds to Ghana’s education sector up by 200% from page 1 Last year, the donor funding to the West Africa country’s education sector was GH¢299million. This increase, according to country’s Parliamentary Select Committee on Education, was as a result of a number of projects that the ministry of education would implement this year. With a global average of about 5 percent, Ghana spends over 6 percent of Gross Domestic Product (GDP) on education and has one of

the highest expenditures on education as a proportion of Gross Domestic Product (GDP) compared to other countries. Currently, the proportion of GDP and budgetary expenditures on education in Ghana is one of the highest in the world. However, these expenditures in education – mostly geared toward salaries and compensation – leaves little for infrastructural development and this do not give us commensurate output in terms of enrolment, retention and results. Unlike the previous year, in 2019, where no money was allocated to the education

sector from the Annual Budget Funding Amount (ABFA), an amount of GHc16million was given to the Education Ministry from the ABFA component of the budget. The ABFA allocation for the year 2020 is earmarked for the commencement of the construction of 20 STEM centres across the country. The huge expenditure that government puts into the education sector does not reflect the quality that the country wants. Experts have argued that the state of education in the country will restrict the ability to

transform the economy from a middle-income country with low total factor productivity and weak systems to the status of a developed economy. Already, employers complain about the quality of graduates at all levels of education, with some decidedly giving preference to Ghanaians who have schooled abroad. The price of the crisis in education will be a major constraint on the country’s ability to accelerate economic development, the experts have argued. THEBUSINESS24

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BUSINESS24 MONDAY, FEBRUARY 3, 2020

Trans-ECOWAS rail project on course the Request for Qualification stage (RfQ). In 2019, the rails ministry was allocated a total amount of GH¢636million for its priority projects. Budget released for the year under review amounted to GH¢270million. In line with its mandate, the Ministry and its implementing agencies undertook a number of projects last year. For instance, a 30km narrow gauge railway line from Accra to Tema was rehabilated. The section of the line from Achimota to Nsawam, which is about 40km, was also rehabilitated and test runs was commenced for the relaunch of the sub-urban commuter rail services from Accra to Nsawam. The Minister for Railway Development, Joe Ghartey, is quoted as saying that: “His government was committed to delivering a modern railway system that will ease movement of people and goods thus improving trade not only for the people of Ghana but also its neighbouring countries.”

BY BENSON AFFUL

hana is on course with its quest to develop its portion of the trans-ECOWAS railway line that will link the country to its neighbours in the West Africa sub-region. Feasibility studies for the development of a trans-ECOWAS line from Afloa in the East of the country through Cape Coast (Central) to Elubo (West) and that of the Port of Tema (South) and Ouagadougou, Burkina Faso (North) has been completed. The ambitious vision will comprise Tema-Ouagadougou project; which is over 100 km stretch linking Ghana to Burkina Faso using the Eastern corridor and the 500km Aflao-Elubo project. The completion of this rail infrastructure is expected to enhance transport services and promote economic activities across the country’s corridors and with its ECOWAS neighbours. A report by the Parliamentary Select Committee on Transport on the project has revealed that the procurement process for the engagement of a strategic private investor is ongoing and it’s at

President Akufo-Addo to present State of the Nation Address Feb 20

Global Shea Alliance Launches 2020 Shea Conference

BY EUGENE DAVIS

hana’s President, Nana Addo Dankwa Akufo-Addo, is to present The State of the Nation Address (SONA) to the West Africa country’s Legislature on February 20, 2020, Majority Leader of the 275-member Legislature, Osei Kyei-Mensah-Bonsu, has revealed. The State of the Nation (SONA) is an annual address to Parliament given by the President of the Republic of Ghana covering economic, security, social and financial state of the country among others. This is in accordance with Article 67 of the 1992 Constitution of the Republic of Ghana and the Standing Orders of the Parliament of Ghana. Article 67 of the Constitution states that: “The President shall, at the beginning of each Session of Parliament and before a dissolution of Parliament, deliver to Parliament a message on the State of the Nation”. The Majority Leader and Minister of Parliamentary Affairs, Hon. Osei Kyei-Mensah-Bonsu, made the announcement when presenting the Explanatory Memorandum of the Business Statement for the first week ending Friday, January 31, 2020, to Members of Parliament on Tuesday, January 28, 2020.

H.E. NANA ADDO DANKWA AKUFO-ADDO

This year’s SONA will serve as a test and crucial exercise for government, given that it is an election year and expectations will be high. With the President, Nana

Addo Dankwa Akufo-Addo, nearing the end of his first term, he would want to deliver a message of hope in consolidating the gains he has made in all facets of the

economy and ensuring financial discipline, heading into a general elections he hopes to win Key areas of concern include the economy, health, education, social protection, politics and agricultural sectors. Similarly, the President is expected to use the opportunity to outline progress made in the implementation of flagship projects, such as the Free Senior High School (SHS) education policy; one-district, one-factory; one-village, onedam; one-constituency, $1 million; and the Planting for Food and Jobs programme. The President told delegates and world leaders at the recently held World Economic Forum in Davos, Switzerland that the programme of economic recovery that his government put in place some three years ago, upon his assumption of office, has been significantly successful. According to him the programme has “addressed the key phenomena that needed to be addressed, like the rate of growth of the economy, the expansion of employment, much, much stronger economic activity, and also enabled us to pay for one of the most important social innovative initiatives that in the government in Ghana has undertaken – the Free Senior High School policy.”

he Global Shea Alliance (GSA) has officially launched “Shea 2020 Conference” at the Palais des Congres in Kara, Togo. This year’s conference, themed “Creating the Industry of Tomorrow” will bring together over 500 shea stakeholders and companies between April 6 and 8, at the Hotel 2 Fevrier in Lomé. Participants of Shea 2020 will benefit from Business to Business meetings (B2B) SME trainings, Field visits to interesting locations and a new attraction - The Shea Butter Village – where participants can experience hand-on shea butter processing. Launching Shea 2020, Managing Director of the

GSA, Aaron Adu, emphasized the need for all to be concerned about the sustainability of the shea industry, specifically, the rapid decline in shea tree population. He expressed that these major sustainability challenges informed the theme for Shea 2020 - “Creating the Industry of Tomorrow”. He encouraged stakeholders to lend their collective voice at the conference and beyond to address these issues in order to guarantee incomes, improved livelihoods and sustain jobs for millions of people. Present at the launch were Togolese government officials as well as women Shea collectors and processors.

BUSINESS24 MONDAY, FEBRUARY 3, 2020

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BUSINESS24 MONDAY, FEBRUARY 3, 2020

The Dispute Resolution Mechanism In The African Continental Free Trade Agreement: The Need For More. KWEKU ATTAKORA DWOMOH & BAKHITA M. KOBLAVIE

INTRODUCTION AND BACKGROUND TO THE AFCFTA

he African continental free trade agreement (AFCFTA) is the agreement that established the African Free trade Area. Its aim is to bring African countries together to trade amongst each other to ultimately lead to regional integration. The historic moment of signing the agreement to formally establish the free trade area ensued in Kigali, Rwanda on the 21st day of March, 2018 by forty-four (44) heads of state of the AU. The journey to the agreement commenced in 2012 where at the AU summit, the heads of states adopted a decision to establish a continental free trade area by 2017 and further endorsed an action plan on boosting intra-African trade. The action plan is up of made 7 main focus areas which are trade policy, trade facilitation, productive capacity, trade-related infrastructure, trade finance, trade information, and factor market integration. Subsequently in South Africa, in June 2015 at the 25th AU summit, the heads of states agreed to launch negotiations for the creation of the AfCFTA with a focus on the liberalization of trade in goods and services in Africa. It was subsequent to this launch that the 44 member states signed the agreement in Kigali. The member states further agreed to three protocols that day namely the protocol on trade in goods, the protocol on trade in services and the Protocol on the rules and procedures of settlement of disputes. The agreement required its ratification by 22 member states before it could come into force. In April this year, the Gambia became the 22nd member state to deposit its ratification instrument with the African Union thus bringing the agreement into force a month later. Currently, fifty-four member states have signed onto the agreement (with Nigeria and Benin being the most recent countries to sign on to it on 7th July, 2019) of which 27 member states out of the 54 have ratified it. Eritrea is the only African country not a party to this agreement. As enshrined in the agreement establishing the AfCFTA, the free trade area is to inter alia create a single market for goods and services as well as a liberalized market for goods and services and to enhance the movement of capital and natural persons. It is also to aid in movement being done without restrictions. By the liberalization of trade, member states are to remove tariffs on 90% of goods to make goods accessible to all across the continent. With this, it has been estimated by the United Nations Economic Commission for Africa that it will boost intra-African trade by about 52% in 2022. It is further estimated that industrialization will be boosted so will be competitiveness and job creation. Further, with a population base of

about 1.3 billion people, it is estimated that by 2030 there will be about 6.7 trillion USD of cumulative consumer and business spending. Beyond doubt, the AfCFTA is the largest free trade area to be created after the World Trade Organization came into force in 1994. Of much important to this article is the dispute resolution mechanism of the AfCFTA. DISPUTE RESOLUTION MECHANISMS IN FREE TRADE AGREEMENTS. As already emphasized, the essence of a Free Trade Area is to ensure members trade easilywithin the designated area without trade barriers or other hindrances. The Free Trade Agreements are thus executed to define the rights and obligations of members within the chosen free trade area. Free Trade Agreementsusually embody terms of compliance, enforcement of obligations and more importantly, dispute settlement mechanisms. This is because conflicts in trading are inevitable. They may arise regarding the nature, scope and interpretation of the trading terms, as countries engage in trading across borders. Undeniably, the obligations in a trade agreement may lose their potency in the absence of a properly functioning dispute settlement mechanism. As such, it is important to provide a mechanism through which such trade disputes arising as a result of the breach of obligations may be quickly and effectively resolved. A Dispute Resolution Mechanism (DRM) in a Free Trade Agreement provides an apparatus for parties to settle their dispute within the tenets of the agreement under which the complaint is brought. It further offers an opportunity to develop the interpretative jurisprudence of the agreement bringing to the fore situations unapparent or unnoticed at the time of negotiations. A comprehensive DRM negotiated under any Free Trade Agreement serves to ensure that trade disputes are resolved in a uniform manner as stipulated under the agreement, whether in a multitiered fashion, commencing from negotiations, through mediation to arbitration and the use of good offices, or by providing a menu, one of which may be pursued in place of the other. There are three broad categories of DRMs. There is the diplomatic or the political type of DRMwhere parties themselves attempt at negotiating a settlement or reach agreements that workfor themand putissues to rest with the assistance of a third party who cannot impose a binding decision on them. Some of the mechanisms under this category are consultation, mediation, conciliation and the use of good offices. The Diplomatic mechanism often constitutes the first tier of the multi-tier dispute resolution clause. A second category is the

use of arbitration or adjudication,where an arbitral tribunal either ad-hoc,under the United Nations Commission on International Trade Law (UNCITRAL) Rulesor institutional, under the World Bank’s International Centre for Settlement of Investment Disputes (ICSID), is established when disputes arise and with terms of reference limited to that dispute, in accordance with the terms of the agreement under which the dispute arose.An example is the menu of DRM provided for underthe North America Free Trade Agreement (NAFTA) which requires disputing parties to elect between one of the listed modes of arbitration . The use of arbitration or adjudication normally works as the second phase in a multi-tiered DRM. The third category is the use of standing courts or tribunals which are typically composed of judges who are appointed for a fixed length of time, and whose powers cease upon the expiration of such term. The European Union (EU) Court of Justice (EUCJ) and the Investment Court system (ICS)envisaged under theComprehensive Trade Agreement between the EU and Canada (CETA) are examples. A proper DRM will also embody matters concerning the legal consequences and enforcement of outcomes of dispute resolution by providing appropriate sanctions and enforcement mechanisms. Matters regarding the overlap of obligations under the particular agreement and other trade agreements and issues of locusstandito bring a claim under the agreement would also have been settled under a comprehensive DRM. This will largelyguaranteecertainty and consistency in dispute settlement under the agreement . DISPUTE RESOLUTION UNDER THE AFCFTA With an aim to ensure disputes do not tarry trading, the AfCFTA establishes a dispute settlement body under article 20. It is noteworthy that the DRM under AfCFTA is to an extent a replica of the DRM under the World Trade Organization (WTO), whilst bearing significant resemblance to the Association of South East Asian Nations (ASEAN) FTA and the EU-Vietnam FTA , among others. First, the features of the DRM under the AfCFTAis multitiered, requiring parties to attempt a first mode of dispute resolution before proceeding to the next. The ProtocolOn Rules and Procedures on the Settlement of Disputesstipulates that member states must first resort to consultation, being an amicable way of resolving the disputes, failure of which empowers them to refer the dispute to a dispute settlement board (DSB) for a panel to be constituted . Subsequently, disputants dissatisfied with the decision of the DSB panel may resort to the appellate body for further recourse. The Protocol

under Article 27 also makes provision for arbitration , as an alternative to a dispute resolution by the DSB panel. This means that disputing parties may only elect between a DSB panel dispute resolution andan arbitration constituted by mutual agreement of the parties. Notwithstanding the right of the parties to refer the matter to the dispute settlement body or to arbitration under Article 27, the disputing parties have further rights under article 8 of the protocol to engage in other diplomatic means of resolving the conflict amicably such as mediation, good office, and conciliation, at any time during the arbitration or DSB procedure. Regarding compliance and enforcement of the outcome of dispute resolution under the AfCFTA, the agreement makes provision for the effect or consequence of the decision of a DSB panel or an arbitral tribunal and the implementation of such decisions. The outcome of the investigations of the panel set up by the DSB becomes a ruling or recommendation if remains unchallenged by the parties and adopted by the DSB. If challenged before the appellate body, and a determination is made, the later determination becomes a recommendation capable of enforcement against the defaulting party who is entreated to abide or face sanctions. Second, article 3 of the protocol grantslocus standi (the capacity to institute a legal claim) to only member states. Article 1 defines a dispute as a ‘disagreement between State Parties regarding the interpretation and/or application of the Agreement in relation to their rights and obligations.’ In effect, only countries can institute actions before the dispute settlement body to resolve any disputes that arise under the AfCFTA. This is an indication that the AfCFTA leans more towards a state-state dispute settlement mechanism. By giving only States the capacity to bring actions under the agreement, private parties are eliminated from the equation. A private person aggrieved within the trading area can only have recourse by petitioning their participating home State to take an action on their behalf. The main challenge is that, in reality, the trading in goods and trading amongst countries are donenot by States but by private persons, whether natural or artificial. It is also commonplace that disputes are inevitable in trading. Therefore it is problematic for the dispute resolution mechanism of the AfCFTA to grant locusstandi only to States. The real dispute concerns of private non-state actors within the trading area are not addressed under the protocol. It has been noted however in the 2016 United Nations Commission on Trade and Development (UNCTAD)report that disputes within a free trade area among States are costly and time consuming. This is not sustainable

for business and commercial activities which thrive on rapidity. Where the State seems unconcerned with the claim of the private actor, they will be left with no judicial remedy. That is a disincentive to trading within the free trade area. CONCLUSION As it has been identified, the AfCFTA is a progressive piece of Mega-Regional agreement, given its bold objective to form an economic partnership with States across the length and breadth of Africa. Amongst its strong features, it endeavored that disputes arising under the agreement in the course of trade are resolved swiftly, effectively and amicably, by providing very flexible DRMs allowing parties to elect the mechanism that works better for them, in addition to pursuing diplomatic means. These notwithstanding, there are certain difficulties with the agreement as it currently stands. Notable is the locus standi of parties to submit a dispute for settlement under the treaty. This issue poses a threat to individual traders since there isa potential lack of a judicial remedy in the face of dispute. In the wake of negotiations of the second phase of the AfCFTA protocols which includes the protocol on investment, it is not clear whether negotiators willopt for state-state dispute settlement mechanism or will pursue Investor-State-Dispute-Settlement (ISDS). It is therefore suggested that the negotiators and experts of the various countries pay much attention to how individual traders and investors may have their disputes resolved without recourse to the State party.It will be usefulto provide investors and traders the capacity to engage in dispute resolution, as a substitute or supplement to the state-state dispute settlement as it currently stands.To that end, it is further suggested that the negotiators and experts consider the viability of regional courts or permanent African arbitration tribunals for the resolution of trade and investment disputes, as seen in the case of the EU, to grant the private investor as well as the State capacity to bring an action under the AfCFTA. The option of the use of local courts may not be left out, even though the challenges that come with it cannot be ignored.

Kweku Attakora Dwomoh & Bakhita M. Koblavie. For a list of the countries that signed the agreement see at https://au.int/sites/default/files/ pressreleases/34033-pr-indication20of20signing20authority20-20updated20final20final20docx.pdf. (accessed on the 11th May, 2019) https://au.int/sites/default/files/treaties/36437-sl-AGREEMENT%20ESTABLISHING%20THE%20AFRICAN%20CONTINENTAL%20FREE%20TRADE%20AREA%20 %281%29.pdf Article 3 of Agreement Establishing The African Continental Free Trade Area. http://aufoundation.africa/2018/03/20/ 1

KWEKU ATTAKORA DWOMOH. LLB, LLM (INTERNATIONAL TRADE AND INVESTMENT LAW), UNIVERSITEIT VAN PRETORIA

BAKHITA M. KOBLAVIE. LLB, LLM(COMPARATIVE AND INTERNATIONAL DISPUTE RESOLUTION) QUEEN MARY UNIVERSITY OF LONDON.

africas-continental-freetrade- area-cfta/ (accessed on 10th May, 2019) http://theconversation.com/why-africas-freetrade-area-offers-so-much-promise-93827 accessed on 22 October, 2019. Amelia Porges, Dispute Settlement, in Preferential Trade Agreement Policies for Development: A Handbook Part 2. pp. 467–497 (2011), at <http://siteresources.worldbank. org/INTRANETTRADE/Resources/PTAch22. p> refered to by Victor Crochet, “Dispute Settlement Mechanisms in FTAs” September 22, 2016 available at <https://www.tradelab. org/single-post/2018/03/02/Dispute-Settlement-Mechanisms-in-Free-Trade-Agreements> accessed October 21 2019 Ibid Erika Szyszczak, “Dispute Resolution in EU Trade Agreements: A preliminary glimpse of a New World Order” June 26 2019, available at <https:// blogs.sussex.ac.uk/uktpo/2019/06/26/disputeresolution-in-eu-trade-agreements-a-preliminary-glimpse-of-a-new-world-order/> accessed October 21 2019 Victor Crochet, “Dispute Settlement Mechanisms in FTAs” September 22, 2016 available at <https://www.tradelab.org/single-post/2018/03/02/Dispute-Settlement-Mechanisms-in-Free-Trade-Agreements> accessed October 21 2019 See chapter 11 of NAFTA See AfCFTA Art 4(1) of the Protocol On Rules and Procedures on the Settlement of Disputes. See “The process- stages in a typical WTO dispute settlement case” available at <https:// www.wto.org/english/tratop_e/dispu_e/disp_ settlement_cbt_e/c6s1p1_e.htm> accessed 27th October 2019 See ASEAN Protocol on Dispute Settlement available at <https://asean.org/?static_ post=protocol-on-dispute-settlement-mechanism> accessed 27th October 2019 <https://trade.ec.europa.eu/doclib/docs/2018/ september/tradoc_157375.pdf> See AfCFTA Art 6 and Art 7 of the Protocol On Rules and Procedures on the Settlement of Disputes. The wording of the provision shows that the agreement envisages ad-hoc arbitration, and can be done under the UNCITRAL rules or under the Permanent Court of Arbitration (PCA) rules. This also means that parties engaged in business under the FTA may execute an agreement between themselves regulating dispute resolution by arbitration. This will fairly be in accordance with Article 27, which empowers the parties to regulate arbitration by mutual agreement, and in accordance with the protocol. The DSB may under certain circumstances, like failure of the parties to agree on the appointment of an arbitrator, act as an appointing authority to resolve the impasse by appointing the arbitrator.

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BUSINESS24 MONDAY, FEBRUARY 3, 2020

The Next Big Development Challenge ARVIND SUBRAMANIAN AND JOSH FELMAN

e have suddenly arrived at a tricky stage in global economic development. Emerging markets are losing their dynamism, after a remarkable three-decade-long run during which they caught up rapidly with advanced economies. Moreover, rekindling this vigor requires a new economic strategy. But where will such a model come from, and who will provide the intellectual leadership? The latest economic forecasts from the International Monetary Fund and the World Bank are sobering, pointing to protracted slowdowns across the board in China, India, Sub-Saharan Africa, and Latin America. Of course, alarmism about the “end of growth” might be as overblown as past hype about emerging markets’ unstoppable rise. But policymakers in developing countries are genuinely concerned and are grappling with how to revive flagging dynamism. In the past, governments had a ready intellectual solution: the so-called Washington Consensus, a term coined by John Williamson of the Peterson Institute for International Economics, which advocated a broad strategy of macroeconomic stabilization, privatization, deregulation, and globalization. Some questioned whether and to what extent the strategy worked. But the fact is, there was a template – created by leading Western academic

ARVIND SUBRAMANIAN

and policy institutions – that was seen as useful by developing-country policymakers. And the high noon of the Washington Consensus coincided with developing countries’ strong performance. Two of the current strands of thought that might replace the Washington Consensus also originated in the West. The first represents a reaction against the neoliberal approach and is motivated by several disturbing long-run trends: weak growth, rising inequality, an increasingly beleaguered middle class, and collapsing social mobility. This emerging post-neoliber-

al consensus questions the primacy accorded to markets. It advocates a larger role for the state, both to generate better market outcomes (for example, via minimum-wage increases and stricter enforcement of antitrust policies) and to correct inequitable outcomes via aggressive redistributive policies. This approach also calls for more proactive fiscal and monetary policy in the short run. The second strand of thought is associated with Abhijit Banerjee and Esther Duflo, both winners of the 2019 Nobel Prize in Economics. Banerjee and Duflo argue that economic

growth is not really influenced by policy changes, or at least not in ways for which we have strong evidence. They therefore advocate a strategy of “going small”: focusing on measures, such as distributing free malaria bed nets and deworming children, that clearly seem to be effective and will produce localized benefits. But it is not obvious that either approach is of much help to developing countries. The post-neoliberal consensus almost entirely reflects concerns in advanced economies: secular stagnation and unconventional monetary policies are not high-priority problems for governments in poorer countries. Moreover, emerging markets are still growing, not stagnating. And even inequality, which is a common concern, takes a very different form, and requires very different solutions, in developing economies. Perhaps the biggest drawback of the post-neoliberal approach is the dichotomy that it poses – or, perhaps, presupposes – between states and markets. The reality in developing countries is that both states and markets are weak – the very definition of underdevelopment. So, a policy agenda that focuses on increasing the role of the state may well be unrealistic. In addition, climate change is a new and critical aspect of the post-neoliberal consensus that is likely to prove increasingly problematic. On one hand, the overwhelming scientific evidence of global warming is a clarion call to action. On the other hand, policies aimed at promoting rapid decarbon-

ization raise deep concerns in developing countries, because such measures could easily clash with the needs of their energy-deprived citizens. Similarly, many developing-country policymakers simply cannot afford the luxury of a narrow agenda, making them unlikely to take seriously any advice to focus on the “small and certain.” They have no choice but to strive to achieve rapid growth, which has been a prerequisite for all successful development transitions. Moreover, the experience of the 1980s and 1990s shows that this objective is not a chimera, and that growth can indeed be increased by appropriate policy reforms. Mahatma Gandhi famously said: “I do not want my house to be walled in on all sides and my windows to be stuffed. I want the culture of all lands to be blown about my house as freely as possible. But I refuse to be blown off my feet by any.” Do developing countries today have the capacity not to be blown off course? Do policymakers have the intellectual and cognitive wherewithal to absorb and assess the new thinking on economic development, adopting what is appropriate to their situation and rejecting what is not? And do they have their own new ways of thinking about the development challenge? Consider the situation in the two largest developing countries, China and India. China has the intellectual capacity, but is facing the breakdown of its economic model. Chinese policymakers now need to find another approach that both encourages growth and ensures

that the Communist Party of China remains in control – all the while preventing the extraordinary build-up of debt from triggering a crisis. It’s not obvious to anyone how they can do this. Meanwhile, India’s current inward economic turn appears to reflect a broader inclination to be walled in and prevent foreign winds from blowing freely. And this intellectual nativism seems to be more about harnessing technical expertise for political objectives than about valuing it for its own sake. What is clear is that solutions to the new growth and development challenges in emerging markets will have to be indigenous, rather than coming from Western institutions. Building and maintaining among national policymakers the sort of open, self-confident intellectual capacity that Gandhi espoused could well be the next development challenge.

ARVIND SUBRAMANIAN, A FORMER CHIEF ECONOMIC ADVISER TO THE GOVERNMENT OF INDIA, IS A NONRESIDENT SENIOR FELLOW AT THE PETERSON INSTITUTE FOR INTERNATIONAL ECONOMICS AND A VISITING LECTURER AT HARVARD’S JOHN F. KENNEDY SCHOOL OF GOVERNMENT. JOSH FELMAN IS DIRECTOR OF JH CONSULTING. © PROJECT SYNDICATE 1995–2020

What the ECB’s Strategy Review Must Do BY PROF. LUCREZIA REICHLINT

ith her recent announcement of the European Central Bank’s long-overdue strategy review, new ECB President Christine Lagarde has generated high expectations. The review’s outcome will be the first important signal of how Lagarde intends to lead the institution – and of how the ECB is likely to address persistently low inflation in the eurozone. The world is very different than it was in 2003, when the ECB’s strategy was last revised, and the institution has itself undergone deep changes since the 2008 financial crisis. Faced with a global recession and then the 2011-2012 eurozone debt crisis, the ECB abandoned the traditional approach of passively meeting banks’ demand for liquidity – its initial response to the financial crisis. Instead, the ECB started actively managing its balance sheet in order both to ease monetary policy and stabilize the financial system. Furthermore, the ECB has radically expanded its operational tools. In 2014, it introduced negative interest rates on banks’ deposits with

national central banks, and began providing the market with “forward guidance” concerning its future policies. And, since 2015, the ECB has engaged in asset purchases (known as quantitative easing, or QE), causing its balance sheet to double compared to 2008. Finally, the ECB has assumed larger prudential supervisory responsibilities vis-à-vis European banks under the Single Supervisory Mechanism. The first phase of the ECB review will be narrow, focusing on defining the bank’s inflation target, the role of monetary aggregates as signals of medium- to long-term inflation, and communication. This is expected to be concluded in the first half of 2020, to be followed by a second phase of reflection. Any meaningful review of these issues must objectively and critically analyze the decade since the financial crisis, during which average eurozone inflation has been well below the ECB’s objective of “below, but close to, 2%,” and also lower than in the United States and the United Kingdom. In particular, the review should quantify the costs of tolerating a systematically below-target level of inflation, relative to pursuing other policy options.

There are at least three hypotheses to explain the ECB’s inability to achieve its inflation objective. The “policy mistakes” hypothesis maintains that the ECB should have implemented more aggressive policies – in particular, QE – between 2012 and 2014. If these “mistakes” stemmed from an ill-defined ECB strategy, then its strategy will have to be adjusted; if they were the result of political constraints, then its decision-making process should be changed. The second explanation highlights the inadequate coordination of fiscal, financial, and monetary policy in the eurozone. In 2009, for example, monetary easing was accompanied by a delayed cleanup of the banking sector and fiscal austerity, leading to a second recession that the ECB was late to identify. And in 2012-2014, a neutral fiscal stance was coupled with both insufficient monetary stimulus and banking-sector deleveraging. Both hypotheses suggest that the ECB would have fared better had it clearly committed to a symmetric quantitative target for inflation or nominal GDP. That would have implied, for example, not increasing interest rates in 2011 (as the ECB did) in response to the temporary inflationary effect of higher oil prices. It also

would have implied starting asset purchases in 2012 instead of 2015, and not stopping them in 2018. The third hypothesis, favored by some central bankers, is that persistently low eurozone inflation reflects structural factors such as adverse demographics, low growth expectations, and the associated increase in demand for safe assets. This explanation thus draws parallels between the eurozone and Japan, where aggressive monetary and fiscal policies since 2013 have failed to lift the economy out of its two-decade-long slough of low inflation. Advocates of the structural view argue that it would be better for the ECB’s policymakers to adopt a lower inflation target rather than try to engineer a monetary stimulus that ends up inflating asset prices and jeopardizing financial stability. After all, their argument implies, there is little evidence that stable low inflation is bad for welfare. But this third hypothesis can lead to two alternative policy recommendations. The first is a “do-nothing” approach, coupled with a downward adjustment of the ECB’s inflation target in line with actual inflation. Such a course of action is justified if policymakers assume that potential

output growth in the eurozone has declined independently of past fiscal and monetary stabilization policies. The second option, as under the first two hypotheses, is to maintain an accommodative monetary policy, possibly in coordination with fiscal policy. This would be the right thing to do if policymakers believed that persistent slack in the real economy would end up affecting potential output. Most analyses imply that ECB policy has in general been too cautious during the last decade. Moreover, even if one accepts the structural explanation for trend inflation and

takes the view that inflation expectations have fallen independently of past policies, the “do-nothing” option is likely to cause expectations to spiral further downward, possibly leading to a deflationary trap. One then has to consider the costs linked both to the associated relative price adjustments and to the effect that the resulting upward pressure on the real interest rate would have on the burden of private and public debt. These costs are likely to be greater than those associated with the financial-stability risk of doing “too much,” which in any case can be addressed using prudential tools. The ECB’s new strategy will have to be based on the kind of quantitative analysis needed to answer these questions. But it also must recognize that economists are still a long way from understanding the dynamics of low inflation. Given this uncertainty, the ECB should aim to adopt robust policies that cause the least damage under a broad range of scenarios. Lucrezia Reichlin, a former director of research at the European Central Bank, is Professor of Economics at the London Business School. COPYRIGHT: PROJECT SYNDICATE, 2020.

F E ATU RE

BUSINESS24 MONDAY, FEBRUARY 3, 2020

Trade Remedies: What does Ghana stand to benefit from its application?

he World Trade Organisation (WTO) is a rules-based global trade regulator set up by various governments to administer multilateral trade agreements as well as perform other important functions. It was not an entirely new organisation because though it was established in 1995, it succeeded the General Agreement on Trade and Tariffs (GATT 1994) which existing between the period of 1948 to 1995. The WTO which is based in Geneva, Switzerland, boasts 164 member states and headed by Brazilian Roberto Azevedo as the Director-General. The core objectives of the global trade regulator include: Raise the standard of living through trade related activities; Grow income levels and demand; Expand production of trade in goods and services; Secure for developing countries; a share in the growth in international trade in line with economic development. The WTO serves as a forum for multilateral trade agreements, dispute settlement among member countries, with an oversight responsibility on the various trade policies of members and it has strong cooperation with other international organisations. How the WTO is structured: The Ministerial Conference is the highest decision-making body of the organisation; comprised of trade ministers of the various member states. General Council comes next and it is responsible for the day-to-day operation. It has various body for dispute settlement and trade policy review. Next in line are the Councils; there are separate councils for trade in goods, trade in services and trade-related intellectual property rights. There are some basic principles that are enshrined in the WTO agreements to promote trade in an equally beneficial manner. Among them include: Non-Discrimination: The two basic principles of the WTO to control non-discriminatory trade practices are the Most-Favoured-Nation (MFN)

and National Treatment. The MFN principles states that any favour that is granted to any member country of the organisation must immediately and unconditionally apply to all other members. The National Treatment is basically to check against discrimination within domestic markets as it states that treatment for imports from WTO member countries should be given the same incentives and favours that are given to domestic like or unlike products. Fair treatment: This measure makes provision for certain interventions that ensure a level playing field in WTO trade markets. They include government subsidies which are usually extended to both domestic and foreign goods except in the case of anti-dumping. Subsidies are primarily to give producers and traders a certain level of advantage in a market. Transparency: In the interest of business confidence and hassle-free trade within markets, WTO member countries are required to ensure prompt notification of new trade policies and regulations, fair administration of such trade regulations. Specifically, the establishment of enquiry points and other means of communication are necessary. Despite the above trade facilitating incentives, there are exemptions to the rule where the WTO allows member states

to apply some safeguarding interventions as an anti-dumping strategy or to ban harmful products in the interest of national security, in adherence to regional trade agreements and in furtherance of the Enabling Clause of the WTO. Trade Remedies The key principle of the WTO is the elimination of discriminatory practices in international trade relations among members, however, the organisation has identified that members may need to take measures which derogate from the principles of non-discrimination in order to counters the effects that certain trade practices of other Members may have on their interests. In addition to the various derogations from obligations that are permitted by the WTO (e.g. to protect health and safety, for environmental reasons, for national security, etc.), the organisation also recognises that trade itself can cause or exacerbate problems of an economic nature. A number of general and sector-specific provisions allow members to take certain actions to address these sorts of problems, which actions would be contrary to WTO principles and obligations in the absence of these provisions. These economic derogations include trade remedies: Anti-dumping, countervailing, and safeguard

measures. Anti-dumping measures: Anti-dumping refers to measures taken to offset, with a border measure, dumping that has been found injurious to the domestic industry. Dumping is where a producer/exporter exports a product to another country (foreign market) at a price lower than the ‘normal value’ which the producer or exporter normally charges in its own domestic market. WTO rules do not pass judgment on the practice of dumping. The rules however impose disciplines on anti-dumping measures through GATT Article VI and the Anti-Dumping Agreement which clarifies and expands on Article VI, and the two operate together. Calculation of Dumping Margin (Normal Value-Export Value)/ (Export Value) x100=% Margin of Dumping Dumping is established by comparing the ‘normal value’ and the ‘export price’. Generally, the normal value is the price at which the like product is sold for consumption in the market of the exporting country. The export price is the price at which the exporter sells the product to the importing country. The dumping margin is usually expressed as a percent-

age of the export price. For example, if the normal value is US$100, and the export price is US$80, the difference is 20, and the dumping margin would usually be expressed as 25% (i.e., (20 ÷ 80) x 100). Determination of injury to the domestic industry. The Anti-Dumping Agreement leaves discretion to the investigating authorities as to how the question of injury to the domestic industry is to be analyzed. It sets out a series of mandatory factors to be considered in the analysis of the impact of dumped imports on the domestic industry, including: • Actual and potential decline in sales, profits, output, market share, productivity, return on investments, or utilization of capacity • Factors affecting domestic prices • The magnitude of the margin of dumping • Actual and potential negative effects on cash flow, inventories employment, wages, growth, ability to raise capital or investments. Safeguard measures A safeguard measure refers to the temporary suspension of a multilateral concession (tariff cut, etc.) and other obligations. A safeguard measure can only be applied where total imports of a given product have increased to such an extent and under such conditions as to cause or threaten to cause serious injury. Safeguard measures must be applied on Most-Favoured-Nation (MFN) basis to all imports of the products, regardless of source. Safeguard measures can take a wide range of forms but the most common forms are tariff increases above bound rates, quotas, and tariff-rate quotas. A safeguard measure can only be applied if it is determined in an investigation, conducted in accordance with the rules set forth in Article XIX of GATT 1994 and the SG Agreement, that imports of a product have increased to such an extent and under such conditions as

to cause or threaten to cause serious injury to the domestic industry producing like or directly competitive products. Safeguard measures are subject to numerical limits on duration, the initial period of application cannot exceed four years. Any extension(s) cannot exceed, in total, an additional four years or six years in the case of developing members applying measures. Subsidies and countervailing measures These measures establish rules to regulate the provision of subsidies, and the actions that Members can take in respect of harmful effects caused by other Members’ subsidies. For a measure to be considered a subsidy for the purposes of the SCM Agreement, it must comprise of three basic elements: • A financial contribution • By a government or public body • Conferring a benefit The SCM Agreement classifies specific subsidies into two groups: prohibited subsidies and actionable subsidies. There are only two kinds of prohibited subsidies: Export subsidies and local content or import substitution subsidies. The SCM Agreement applies not only to industrial products, but to agricultural products as well thus subsidies disciplines and countervailing measures can be invoked in respect of agricultural products. WTO maintains a database of trade remedy actions by Members regarding anti-dumping, subsidies and countervailing measures, and safeguard measures through the Integrated Trade Intelligence Portal Agreement in respect of those product.

THIS ARTICLE IS CULLED FROM THE MINUTES OF A PILOT CERTIFICATE TRAINING PROGRAMME IN INTERNATIONAL AGRICULTURE TRADE POLICY FOR DEVELOPMENT OF AGRICULTURE AND REGIONAL FOOD MARKETS HELD AT THE COLLEGE OF AGRICULTURE (CAGRIC) OF THE UNIVERSITY OF EDUCATION WINNEBA, ASHANTI MAMPONG. THE WRITER CAN BE REACHED ON: PARRYUSHER@GMAIL.COM

ITME Africa 2020: Promoting business, social and cultural relations

ith the motto ‘Prosperity through Technology’, ITME AFRICA 2020, the first of its kind business and technology event shall be hosted in Addis Ababa, Ethiopia from 14th to 16th February 2020. India ITME Society - a nonprofit apex industry body in India, International Trade Centre (ITC-UN), Geneva--a global organization promoting trade between nations and Ethiopian Chamber of Commerce and Sectoral Associations (ECCSA)-autonomous national Chamber of Ethiopia, have come together for ITME AFRICA 2020 in order to encourage and facilitate bilateral, regional, intra-regional

collaborations to stimulate trade and investment through technology and engineering especially in the textile sector. This largest technology and engineering event in the African Continent is supported by Ministry of External Affairs (GOI), Ministry of Textiles (GOI), Ministry of Commerce and Industry (GOI), Engineering Exports Promotion Council (EEPC, Govt. of India), Federation of Indian Chambers of Commerce and Industry (FICCI), Federal Democratic Government, Republic of Ethiopia, Ethiopian Textile Development Institute & International Trade Centre. (ITC), Switzerland, Geneva. ITME AFRICA 2020 shall see a total of 172 exhibitors from

15 countries, highest number of exhibitors, 87+ companies being from India. Country pavilion from Switzerland, Italy, Turkey, and China apart from India shall showcase world’s best machinery and technology in 23 chapters. This International Exhibition & Technical Seminar promoted globally for over a year shall see a convergence of business delegations and visitors from 32 countries. ITME AFRICA shall witness industry buyers and visitors from 7 African countries (Botswana, Ethiopia, Ghana, Kenya, Rwanda, Tanzania, and Uganda); once again, registering largest number of visitors. Offering a 360support and solutions for entrepreneurs

and companies interested in doing business with Africa concurrent programs such as Business to Business( B2B), Business to Government( B2G), Business to Finance( B2F) and Technical seminars are organized and is well received by industry members. To encourage host country Ethiopia and all of Africa achieve self-sufficiency in Cotton production through modern technology, technical seminar sharing the experiences of India and also showcasing the latest award winning technology by Indian Institute of Technology, a premium technology and engineering institute of India is being showcased at ITME AFRICA 2020.

During this exhibition, live demonstration of weaving machine manufactured in India shall be available and then further shall be donated toBahir Dar University for Student Lab & Research Study, stimulating and encouraging technical education in the country. The event is poised to be a catalyst not only for the textile and manufacturing industry but also for education and research institutes across the continent. Apart from encouraging trade and investment, ITME AFRICA 2020 shall also influence cultural amalgamation with fusion music and performance. ITME AFRICA is not just an

event but is the beginning of a journey towards self-reliance, socio-economic advancement and co-operation for entire continent of Africa. This prestigious exhibition shall be inaugurated on 14th February 2020 in the august presence of esteemed dignitaries and ministers from government of Ethiopia and Guests of Honour Ms. Dorothy Tembo, Executive Director, International Trade Centre, UN, Geneva and Mr. AnuragSrivastava, Ambassador of India to The Federal Democratic Republic of Ethiopia.

PH ARM ACE U TI C AL S

BUSINESS24 MONDAY, FEBRUARY 3, 2020

Danish medics in Ghana to explore opportunities in health sector

hana’s Ambassador to Denmark, Amerley Ollennu Awua-Asamoah, has led a seven-member Danish delegation from the Global Medical Aid to Ghana to explore opportunities, acquire first-hand information on the country’s health sector and identify areas for support. The delegation has already engaged with the Minister of Health, Dr. Kwaku Agyemang-Manu, the First Lady, Mrs Rebecca AkufoAddo and management of the Korlebu- Bu Teaching Hospital. They have also visited and had meetings with the management of the Ghana Baptist Convention and its two beneficiary hospitals, the Wenchi Hospital and the Tetteh Quarshie Hospital in Mampong. The visits to those hospitals were to assess the impact of the drugs shipped to the various hospitals and to see how best they can increase and maintained the drug supply to the hospitals. The Global Medical Aid last year, through the facilitation of the Ambassador, shipped more than ten 40-footer containers in excess of $6 million full of drugs, medical and surgical equipment and other medical consumables. The Rebecca Akufo-Addo Foundation, the Wenchi District Hospital and some surroundings hospitals and the Baptist Medical Centers at Nalerigu and Nzema were the beneficiaries. Ambassador Awua-Asamoah said the government of has

made health a priority and that it was incumbent on his appointees promote his agenda. She noted that the drugs, medical and surgical equipment facilitated from the Global Medical Aid had gone a long way to support and help the various beneficiary hospitals. Ambassador Awua-Asamoah said:” I am doing everything possible with officers to promote the government agenda by pursuing the development aspirations of President AkufoAddo led government.” Mr. Hans Frederik Dydensborg, President, Global Medical Aid said, the value of the medicines and equipment, which the Ambassador had procured for Ghana was much but not enough, adding that, “the value for the sick and poor people is enormous and cannot be measured economically.” Mr. Dydensborg who is also an Advocate of the Supreme Court, Denmark said, Ambassador Mrs Awua-Asamoah were the first and only one from Ghana, who did it and expressed his admiration for the Ambassador energy to make things happen for the country not by sweet words, but hard work and his outfit willingness to help Ghana. Since 2018, the Global Medical aid has donated hospital equipment and consumables in excess of $6 million. They will be donating medical equipment and consumables to some hospitals to support their operations, and other chip compounds and health centers in the Akuapem North municipality.

Realizing the Promise of African Health Care

he quality and accessibility of health care have long been known to have a disproportionate impact on the economic and emotional wellbeing of entire societies. The 54 countries that make up the continent of Africa are no different. Like many of their emerging-market peers, these countries have been plagued by a combination of high disease rates and insufficient resources to tackle the health burden. But, after ten years of mobilizing more than $300 million for health-care providers across multiple African countries, I am cautiously optimistic that a transformation is beginning to take hold. Four essential elements are driving the continent’s healthcare transformation: government-led efforts to achieve universal health coverage; market-led consolidation of health-care providers; major private-equity investors; and digital technology. Political leaders across Sub-Saharan Africa generally agree that government-sponsored insurance is the foundation of universal health care. In Ghana, Kenya, Nigeria, Rwanda, and South Africa, at least 60 million people now have some form of health insurance, according to health ministry data and a 2018 global analysis

of Sub-Saharan Africa’s insurance markets. That number is set to grow significantly. As governments reimagine their role, shifting from care provider to payer, they could bring quality health care to millions. But much more needs to be done to make health insurance universal, comprehensive, and efficient. For example, Ghana adopted a mandatory national health insurance program in 2003, but the country’s National Health Insurance Authority reported that it had enrolled only 38% of the population in the program’s first decade of existence. Meanwhile, Rwanda boasts more than 90% penetration, but the services covered are limited mainly to primary care. Providing health insurance to everyone is difficult and complicated. Costs are a concern. Some government-backed insurance schemes are plagued by high overhead, inefficiency, and allegations of delayed payments and corruption, all of which undermine their sustainability. The solution is a combination of better governance and greater reliance on technology and the private sector to boost efficiency, reduce costs, and improve quality. Governments will continue to play an important

BIJU MOHANDAS

role, but partnering with the private sector is essential to reach health goals. I see great promise on this front. A sector traditionally dominated by thousands of small establishments is now benefiting from consolidation, which brings economies of scale, lower costs, consistent quality, and the power to attract high-quality staff. In Kenya, for example, the Ladnan, Metropolitan, Avenue, and Nairobi Women’s hospitals, among others, now form a seven-city network of eight hospitals and 16 clinics under

common ownership. Similarly, in retail pharmacy, Goodlife – a client of the International Finance Corporation, the World Bank’s commercial lending arm – runs 57 outlets. Much of the market growth for these platform companies has come from mergers and acquisitions. Looking ahead, I believe more players will grow organically through brownfield and greenfield developments of hospitals and by branching out into specialties. As they grow, businesses must overcome stubborn structural hurdles such as low insurance

penetration and medical skills shortages. The third important element is institutional equity capital, which for too long was absent in Africa but is now becoming more widespread. In 2005, private-equity funds focused on African health care raised only $100,000, but by 2015 that figure had skyrocketed to $2 billion, according to a study of private equity in African health care from Preqin, a company that produces proprietary research on alternative assets. Vehicles like the Africa Health Fund and Investment Funds for Health in Africa (IFHA) have invested an estimated $200 million in the region, spawning successor funds totaling $1.1 billion. This private-equity investment is helping to professionalize financial management, improve business strategies and governance, and attract top-notch management talent. There is also a strong track record of profitable exits. The fourth element, digital technology leveraging the ubiquitous mobile phone, has enabled the deployment of health care to distant and remote regions. Telemedicine apps such as Babylon, which provides virtual consultations, are gaining traction. As Africa’s disease profile shifts further to noncommunicable diseases,

I expect that smartphones increasingly will be used not only for consultations, but also to diagnose pathological specimens and medical images, as well as to gather and analyze patient data to prevent diseases before they manifest. Each of these interventions has the potential to reduce dramatically the cost of health care, improve quality, and do more with fewer resources. Clearly, there are many reasons for optimism. The building blocks have been laid: health-care systems funded by African governments via universal insurance schemes are being bolstered (where necessary) by private institutional capital and/or development aid, and by technology that broadens the system’s reach. While a lot more remains to be done, Africa’s health-care sector is at an exciting crossroads. The meeting of public policy, private entrepreneurs, investors, and technology is bound to transform the development landscape for the better. BIJU MOHANDAS IS HEAD OF HEALTH AND EDUCATION FOR SUBSAHARAN AFRICA AT THE INTERNATIONAL FINANCE CORPORATION. © PROJECT SYNDICATE 1995–2020

M I NI NG

BUSINESS24 MONDAY, FEBRUARY 3, 2020

Botswana Diamonds raises £250 000 for exploration Côte d’Ivoire gold output up 35% in 2019 after new mine starts

MARLENY ARNOLDI

im-listed Botswana Diamonds has undertaken a placing with existing and new investors to raise £250 000 to fund exploration activities in Botswana, Zimbabwe and South Africa. The company will issue about 41-million new ordinary shares, at a placing price of 0.6p apiece. Each placing share has one warrant attached, which allows investors to subscribe for one new ordinary share at 0.6p apiece for two years. In South Africa, the company is exploring prospective rights together with Vutomi Mining, with the rights spanning 50 000 ha in Limpopo, North West and Free State. In Zimbabwe, it is exploring the Marange diamond fields, together with Aim-listed Vast Resources. In Botswana, the company and its 51%-owned subsidiary Siseko Minerals are exploring the Maibwe Diamonds prospects, together with Botswana’s State-owned base metal producer BCL and Future Minerals.

Additionally, it is also exploring two other areas in Botswana, and the Orapa and Kalahari regions, of which Orapa is in joint venture with Russian diamond miner Alrosa. SOURCE: CREAMER MEDIA ONLINE

ôte d’Ivoire produced a record 32.478 t of gold in 2019, up 35% from 24.06 t in 2018, data from the mine and geology ministry seen by Reuters showed on Tuesday. The rise was partly explained by the start of production in the northern mine of Sissingue operated by Perseus Mining, mining industry officials said. The country’s manganese output was also 49% higher at 1.18-million tonnes in 2019, up from 791 911 t in 2018. Côte d’Ivoire, the world’s top cocoa producer, is seeking to develop its mining sector to diversify its sources of income. The country expects to reach 50 t by 2025. SOURCE: REUTERS

Centerra Gold Announces First Gold Pour at the Öksüt Mine

enterra Gold Inc. (“Centerra”) (TSX: CG) is pleased to announce that the first gold pour from its Öksüt Mine in Turkey occurred today which is on schedule and ahead of budget. Additionally, the project achieved a significant safety milestone this week, achieving two million work hours Lost Time Injury Free. Scott Perry, President and Chief Executive Officer of Centerra stated, “Congratulations to the team at Öksüt on pouring first gold and for doing so safely. This is an important milestone for the project and for the growth of the Company as Öksüt is now our third operating mine and our third source of gold production going forward. Reaching the first gold pour is a testament to the dedication and hard work that our Öksüt team has put in to reach this goal safely.” “This milestone would not have been achieved without the initial conviction and perseverance from the Centerra exploration team given that the Öksüt Mine, originally started as a greenfield exploration venture in 2009.” “Finally, I would like to thank all of the stakeholders of the Öksüt Project, including the local communities and the relevant government authorities, who have worked with us constructively over many years.” Centerra Gold Inc. is a Canadian-based gold mining company focused on operating, developing, exploring and acquiring gold properties in North America, Asia and other markets worldwide and is one of the largest Western-based gold producers in Central Asia. Centerra operates two flagship assets, the Kumtor Mine in the Kyrgyz Republic and the Mount Milligan Mine in British Columbia, Canada and now has a third operating mine, the 100% owned Öksüt Mine in Turkey. Centerra’s shares trade on the Toronto Stock Exchange (TSX) under the symbol CG. The Company is based in Toronto, Ontario, Canada.

M ARI TI M E

BUSINESS24 MONDAY, FEBRUARY 3, 2020

Shippers’ Authority pays courtesy call on FDA, GUTA President

4 New port terminals for West Africa…as A.P. Møller Capital gets EU green light

he Ghana Shippers’ Authority (GSA) has paid courtesy calls on the Food and Drugs Authority (FDA) and the President of the Ghana Union of Traders’ Associations (GUTA) in Accra. The visits form part of the GSA’s strategic plan to deepen its relationship with stakeholders in the shipping and logistics industry with the overall objective of protecting and promoting the interests of shippers in Ghana. Receiving the delegation from the “providers of shipping solutions”, the Chief Executive Officer (CEO) of the FDA, Mrs. Delese Mimi Darko commended the GSA for the visit to discuss issues of mutual concern. On her part, the CEO of the Ghana Shippers’ Authority, Ms Benonita Bismarck called for deeper consultation between the two state agencies on trade related issues to advance the cause of traders, particularly at Ghana’s ports and borders. The meeting discussed, among others, importers and clearing agents’ concerns about the implementation of new FDA charges on imports per LI 2386 (2019), concerns of small-scale exporters on ex-

port certification charges and examination of reefer products at the intrusive platform of MPS and the way forward to addressing them. In a separate meeting with the President of GUTA, Dr. Joseph Obeng, Ms. Bismarck assured him of the GSA’s support on issues of concern to GUTA for the greater good of the trading community.

The GUTA boss emphasised the importance of dialogue and consultation by state agencies with trade associations on policy directives and initiatives to engender harmony and peaceful climate for the growth of businesses to develop the country. He commended the GSA for showing interest in the concerns of his association and

pledged its commitment to the deepening of their relationship for the benefit of all stakeholders. Some members of the Management of the GSA, including the Heads of Freight and Logistics, Shipper Services and Trade Facilitation, Public Relations and the Tema Branch manager participated in the two meetings.

Overseas Commerce repositions as one-stop logistics hub

he European Commission has approved the acquisition of joint control over four project companies with concessions to build or operate port terminals in West Africa by Denmark’s A.P. Møller Capital (APMC). These include GSEZ Cargo Ports, a company operating a cargo terminal and logistics business in Gabon; GSEZ Mineral Port, which operates a mineral terminal in Owendo, Gabon; Arise, a company holding the concession for a cargo port in Mauritania; and Terminal Industriel Polyvalent de San Pedro S.A., which holds a concession to build and operate a bulk terminal in the Ivory Coast. “The Commission concluded that the proposed acquisition would raise no competition concerns because of its limited impact on the market. The transaction was examined under the simplified merger review procedure,” the European Commission

said in a statement. APMC is an affiliate of A.P. Møller Holding and was established to manage stand-alone funds to invest in infrastructure in emerging markets. The first fund is focusing on Africa. Africa Infrastructure Fund I K/S (AIF 1), acting by its manager APMC, will acquire the shares in the project companies through Arise P&L Limited, a special purpose vehicle incorporated in the United Kingdom. Upon completion, the four project companies will also be full-function joint ventures within the EU merger rules. Back in August 2017, A.P. Møller Holding, together with PKA, PensionDanmark and Lægernes Pension launched AIF. Twelve months after the launch, APMC received total commitments of USD 982 million from institutional investors. worldmaritimenews

Gulf of Guinea: 228 cases of piracy and robbery recorded in 2018

verseas Commerce Ghana Ltd, a logistics company located in the Tema Port enclave has held an open day forum with its stakeholders to interact with them towards improved working relationship and also discuss trends in the logistics ecosystem. The company currently operates a terminal hub dedicated to export and refrigerated cargo, a customs bonded warehouse and a commercial cold store warehouse. Chief Executive Officer of Overseas Commerce Ghana Ltd, Boaz Amiel, said the company, which originates from Israel, is putting in place measures to ensure that it

becomes a one-stop logistical hub serving importers and exporters in Ghana. “We are also lucky that just about 300 metres across the street, we have the entrance to the new expanded port, which is one of a kind in West Africa. And if any of the importers wants to move fast to get goods to our storage place, it is easier because we are close to the port,” he expressed. The Commissioner of Customs Division of the Ghana Revenue Authority, Col. Rtd Kwadwo Damoah, said his outfit, in addition to its primary mandate of generating revenue for the state, also seeks to provide the enabling environment for businesses to

facilitate trade in the country, thus allowing OCGL to operate a customs bonded warehouse. “We are also important facilitators of trade. So, if you have a partner who is in a position to assist in the realization of any of our goals, then we should be glad to be associated with them,” he expressed. The Tema Branch Head of the Ghana Shippers’ Authority, Monica Josiah, explained the importance of having a world class logistics ecosystem to boost export trade in Ghana and lauded companies like OCGL, which is contributing to the country’s export goals. “It will make our country attractive; more industries will be set up here which will

create jobs for people. It will boost our exports and it will enable Ghana to maximize the advantages that are associated with increased exports.” Adam Imoru Ayarna, the Vice President of the Ship Owners and Agents Association of Ghana, encouraged shippers to patronize such warehousing facilities in order to expedite their business processes. “I don’t see why businesses would invest in warehouses when there are warehouse specialists around because it will add to your cost. So what is important is for you to make use of what exist and you will see that it will have an overall value to your business,” he urged.

he Gulf of Guinea recorded about 228 incidents of piracy and armed robbery on sea in 2018, according to the Centre for Maritime Law and Security Africa. According to the Executive Director of the centre, Naval Capt. Rtd. Dr. Kamal DeenAli, even though the figures were a slight improvement over that of the previous year, abductions for ransom and kidnappings increased, indicating that human lives are now more at risk than ever. Dr. Kamal Deen-Ali added that, the Gulf of Guinea has proven to be a target zone for pirates and armed robbers because of the general insecurity in the region that has extended onto the maritime domain, which is far more

lucrative. He said the Niger Delta enclave continues to be a breeding ground for wellequipped maritime criminals and this would remain so, if the area continues to be ungovernable. “That enclave continues to still be the highest supplier of pirates or piracy incidents in the region. So as long as the Niger Delta still remains unstable and ungovernable then there is an area that has people that have got the skills and ability to conduct crime and also have a way of evading security forces in Nigeria and for that matter, their crime will spread.” He also called for a holistic approach to tackling maritime security to include both land and sea.

AVI ATI O N

BUSINESS24 MONDAY, FEBRUARY 3, 2020

Coronavirus: Fear Grips Airbus record £3bn bribery settlement saga What you should know about Ghana’s involvement Airport Workers

the planemaker agreed to pay the penalties on Friday after reaching settlements with investigators in the UK, France and the US to end inquiries that started four years ago. In the high court in London, Dame Victoria Sharp, the President of the Queen’s Bench Division, approved the settlement struck with the UK’s Serious Fraud Office (SFO). She said: “The seriousness of the criminality in this case hardly needs to be spelled out. As is acknowledged on all sides, it was grave.” Allison Clare, speaking for the SFO, told the court the company had paid bribes in Malaysia, Sri Lanka, Indonesia, Taiwan and Ghana between 2011 and 2015. Airbus, which admitted five counts of failing to prevent bribery, had used a network of secret agents to pay large-scale backhanders to officials. The penalties will be paid to the governments of the three countries that investigated Airbus, with £1.7bn going to France and £820m going to the UK Treasury. The US settlement was approved in Washington by District Judge Thomas Hogan, who said: “It was a pervasive and pernicious bribery scheme in various divisions of Airbus SE that went on for a number of years.” Airbus also admitted violations of US export controls. How Airbus paid bribes in Ghana for military plane deals In the Approved Judgment of Case No: U20200108 In The Crown Court At Southwark In The Matter Of S.45 Of The Crime And Courts Act 2013 Royal Courts of Justice Strand, London, WC2A 2LL Date: 31 January 2020, Airbus was said to have acted through intermediaries, some of whom were close associates of the senior government officials between 2011 and 2015, to pay their way to securing lucrative government deals. The details, as presented to the court and admitted by Airbus are: • The fifth count alleges that contrary to section 7 of the Bribery Act 2010,

between 1 July 2011 and 1 June 2015 Airbus SE failed to prevent persons associated with Airbus SE from bribing others concerned with the purchase of military transport aircraft by the Government of Ghana, where the said bribery was intended to obtain or retain business or advantage in the conduct of business for Airbus SE. • Between 2009 and 2015 an Airbus defence company engaged Intermediary 5, a close relative of a high-ranking elected Ghanaian Government official (Government Official 1) as its BP in respect of the proposed sale of three military transport aircraft to the Government of Ghana. A number of Airbus employees knew that Intermediary 5 was a close relative of Government Official 1, who was a key decision maker in respect of the proposed sales. A number of Airbus employees made or promised success-based commission payments of approximately €5 million to Intermediary 5. False documentation was created by or with the agreement of Airbus employees in order to support and disguise these payments. The payments were intended to induce or reward “improper favour” by Government Official 1 towards Airbus. Payments were eventually stopped due to the arrangement failing the due diligence processes required by the Liquidation Committee. • • Airbus, through one of its Spanish defence subsidiaries, conducted two campaigns to sell its C-295 military transport aircraft to the Government of Ghana: the first campaign ran from 2009 to 2011, the second from 2013 to 2015. Intermediary 5, a UK national with no prior expertise in the aerospace industry, acted as the BP for Airbus in both. Company D was the corporate vehicle through which Intermediary 5 and his associates provided

services to Airbus. His associates were Intermediaries 6 and 7, also UK nationals and there is no evidence they had any aerospace experience either. In August 2011, the purchase agreement for the sale of the two C-295 aircraft was signed by the Spanish defence subsidiary and the Government of Ghana, and it contained a declaration of compliance with the 1997 OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions, as well as a declaration that no more than €3,001,718.15 would be paid to BPs in connection with the contract (broadly, a 5 percent commission). • •After Company D made a formal BP application to Airbus in May 2011, Airbus commissioned an external due diligence report. In September 2011 this report identified Intermediary 5 as a shareholder of Company D. The report raised the possibility that he was a close relative of Government Official 1 and concerns that there was a risk of non-compliance with the OECD Convention. The reaction of a number of Airbus employees, including senior employees, and those involved in compliance, in an email chain in October 2011, is set out at para 188 of the Statement of Facts. In short, it was that the business should be conducted through a new third party, a company, already audited and engaged in the same area. A Spanish company, already an Airbus BP (Intermediary 8) Approved Judgment SFO v Airbus SE and which had no previous links or experience of working in Ghana for any Airbus entity, was duly selected. A number of Airbus employees (two of them senior, and one involved in compliance) thus agreed to deliberately circumvent the proper compliance process by falsely representing that the work in the First Campaign had been done by Intermediary

8, which could, in turn, make the money available to Intermediary 5 and others. Further, the sum paid to Intermediary 8, and then by Intermediary 8 to Intermediary 5 exceeded (in the latter case by about €850,000) the agreed commission amount set out in the declaration of compliance referred to above.

• • Similar false representations to those detailed above were made in February 2014 and then in May 2015, in respect of work allegedly done by Intermediary 8 in respect of a further proposed purchase by the Government of Ghana of a C295. In this case however, the Liquidation Committee requested further due diligence before any payments were made; an external due diligence report was completed in respect of Intermediary 8, and Intermediary 8 declined to participate in interviews by external counsel Airbus had engaged to conduct extended due diligence interviews. Intermediary 8 therefore failed due diligence; Airbus did not enter into a second written contract or make any further commission payments (disputing Intermediary 5’s later claim that he was owed €1,675,000). Key Highlights Airbus C-295 Military Equipment Total in Operation 173 Number supplied to Ghana between 2009-2011 2 Cost of the two C-295 Military Equipment €25,250,942.34 x 2 = 50,501,884 Commission paid to intermediaries for arranging the sale €3,001,718.15

irport workers at the Murtala Muhammed International Airport (MMIA), Lagos are panicking over the devastating effect of Coronavirus, which has killed many, especially in China, as some Chinese are set to return to Nigeria after their Lunar celebration. Although Chinese authorities have directed their citizens not to travel broad, THISDAY learnt that many Chinese who travelled to their country for the celebration would want to return. A source told THISDAY on Wednesday, “Hundreds of Chinese left Nigeria for China to celebrate their annual festival –Lunar New Year– to return next week. At the moment over 6,0000 Chinese are already infected with coronavirus, the Nigerian government should take serious precautions and preventive actions before we have an epidemic in Nigeria. Coronavirus in Nigeria will be a giant catastrophe. Please circulate this until someone high in authority hears about it.” THISDAY learnt that the Federal Airports Authority (FAAN) of Nigeria is already working with the Port Health Department of the Federal Ministry of Health to ensure that the virus is not imported into the country. “All measures used to contain the dreaded Ebola virus have been re-activated afresh and more precautionary measures have also been taken to contain any eventuality,” FAAN said. The Regional Manager in charge of MMIA, Mrs. Victoria Shin-Aba, told THISDAY in Lagos on Wednesday, that FAAN has activated public health emergency system and all stakeholders involved with air travel are being carried along. She also disclosed that sensitisation was being carried out by a committee on communicable diseases being supported by the World Health Organisation (WHO), adding that a national emergency meeting would be held today in Abuja and on Monday FAAN would hold another meeting to domesticate the decisions taken at the national level. Shin-Aba also said the agency has warned its staff to be very careful, adding that FAAN is considering limiting the operations of some airlines but that would need to be approved by higher authorities. “But we have directed all our staff who have anything

to do with passengers to be more careful while processing passengers. We have also issued directives that anyone suspected to be exposed to the virus should be immediately quarantined. “We have also involved the Lagos state government and we are strictly abiding by the health emergency plan. We are prepared for this because before the coronavirus, we were working on similar problem and that made us to be more prepared,” she said. Coronavirus is adversely affecting the global air travel market. Reuters reported that China’s growth has helped power a global aviation boom over the last decade, but as the country curtails travel in the face of a new coronavirus, a slowdown could hit the industry harder than ever before. Reuters also reported that United Airlines, Air Canada, Cathay Pacific Airways Ltd and Finnair Plc were among the carriers that have already canceled some flights to China as countries expand travel warnings and demand plummets due to the coronavirus outbreak. British Airways has halted bookings of direct flights from London to Beijing and Shanghai until March, according to its website. The virus that has killed more than 130 people and sickened more than 6,000, the vast majority of whom are in China. US officials said the White House had decided against suspending all flights there for now, but was still considering the measure. The virus appears to represent the biggest epidemic threat to the airline industry since the SARS outbreak, which at its peak in April 2003 led to a 45 per cent plunge in passenger demand in Asia, analysts said. The global airline industry has been profitable for the last 10 years, according to the International Air Transport Association (IATA). Airlines are in a stronger financial position than in 2003, but also far more dependent on China. “Airlines and airports that are financially strong and well managed are able to overcome a drastic drop in air travel,” said Shukor Yusof, head of Malaysia-based aviation consultancy Endau Analytics. “Weak and poorly managed airlines will suffer.” (This Daylive)

M ARK E T

BUSINESS24 MONDAY, FEBRUARY 3, 2020

WATC H

USDCAD STRUCTURE •

ABC Zigzag corrective wave

PREVIOUS/FORECAST USDCAD • successfully completed its bullish impulsive swing to around 1.32400 price region as discussed in last week’s analysis • Expecting sell off to around 1.30318 price region as price corrects its bullish swing in an abc zigzag corrective wave **current price @ time of analysis: 1.10259

**Price @ time of analysis: 1.31231

EURUSD STRUCTURE •

ABC Corrective wave

PREVIOUS/FORECAST USDCAD • The Euro as discussed in last week’s analysis is still playing around the PRZ at around 1.09936 to 1.10378 price region while completing its 5 wave bearish impulsive swing. • Expecting price to buy in an abc zigzag corrective manner to about 1.11598 price region

**current price @ time of analysis: 1.10259

GBPUSD

**current price @ time of analysis: 1.10259 **Price @ time of analysis: 1.31231

STRUCTURE • ABCDE Contracting Symmetrical Traingle PREVIOUS/FORECAST USDCAD • GBPUSD moved to complete both d and e legs of its abcde contracting symmetrical triangle as discussed last week. • Expecting sell off to around 1.28241 price region

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TRAD E /I NVE STM E N T S

GIZ, NBSSI partner to support WIDU Digital Platform

he Deutsche Gesellschaft fur Internationale Zusammenarbeit (GIZ) and the National Board for Small Scale Industries (NBSSI) have entered into a partnership to improve the employment and income situation in Africa. The total sum of the WIDU Programme is €13million. This Project will be rolled out on a nine-month orientation phase with Ghana and Cameroon as pilot countries. The overarching goal is to support micro and small enterprises, entrepreneurship and job creation, by providing them with improved access to finance through the topping-up of migrants’ transfer of funds and capacity- building of entrepreneurial skills. According to World Bank estimates, members of the Africa Diaspora in Germany transfer EUR 1.2 billion annually to their countries of origin to support family and friends. This clearly indicates the great potential for economic development of which African countries can explore. However, the remittances are rarely used for any entrepreneurial investments. In an attempt to harness the entrepreneurial opportunities

BUSINESS24 MONDAY, FEBRUARY 3, 2020

STDF launches 20202024 strategy for safe and inclusive trade

amongst families of the African Diaspora, an online platform “WIDU” was created. WIDU, which is a digital framework, is used to facilitate, track and subsidize small private business investments in Africa. “The objective of WIDU is to create new jobs, increase income and better economic

perspective for Ghana. This resonates with the government’s Ghana Beyond Aid Agenda focused on job and wealth creation” said Mrs. KosiYankey-Ayeh, Executive Director of NBSSI. The Project is the maiden initiative that enables members of the Africa Diaspora to invest

their money into start-ups and small businesses in Africa, supported and subsidized by the German government. In addition to financial support from the Diaspora, NBSSI will provide coaching and mentoring to sponsored entrepreneurs.

he Standards and Trade Development Facility (STDF) launched its 2020-2024 strategy entitled “Safe and Inclusive Trade Horizons for Developing Countries” at an event held at the WTO last Thursday. The strategy sets out a roadmap for STDF activities in line with the UN’s 2030 Agenda. Building on the STDF’s strong track record, the strategy will support small-scale farmers and micro, small and midsized businesses in developing countries to help them benefit more from trade. Over the next five years, the STDF will develop the skills of people along the supply chain to help them meet international health and safety standards and reach global and regional markets. The STDF is a global partnership to facilitate safe trade, contributing to sustainable economic growth, poverty reduction and food security. It also promotes improved food safety, animal and plant health capacity in developing

countries. To mark the launch of the strategy, WTO Director-General Roberto Azevêdo said: “I wish success to the STDF in implementing this strategy. On behalf of the WTO, I look forward to working with them to ensure that global trade drives growth, development and job creation for people everywhere.” The strategy spells out how the STDF will work in partnership to promote sustainable solutions through dialogue, knowledge exchange and projects on the ground. Results will be jointly delivered by the STDF’s partners, donors, global and regional members, including the private sector and developing country experts. The WTO is among the five founding partners of the STDF, along with the Food and Agriculture Organization of the United Nations (FAO), the World Organisation for Animal Health (OIE), the World Bank Group and the World Health Organization (WHO).

Trump’s Backward March on Trade BY ANNE O. KRUEGER

ollowing America’s disastrous 1930 Smoot-Hawley Tariff Act, the subsequent international trade war, and eventually World War II, the United States went on to lead the world toward a more open multilateral trading system. In 1947, the international community adopted the General Agreement on Tariffs and Trade, which would later become the World Trade Organization. Under this international body, trade was bound to the rule of law and the principle of non-discrimination among trading partners. The system has been a huge success. Over the past seven decades, world trade has grown almost twice as fast as real output. And owing to US leadership, there have been ongoing multilateral negotiations to lower tariffs, remove other barriers (such as quantitative import restrictions), and facilitate trade expansion. But in 2017, US President Donald Trump’s new administration abandoned America’s longstanding commitment to the open multilateral trading system, opting instead for a power-based approach to international economic relations. Under the new dispensation, “might” supposedly makes “right.” The result has been disastrous. Trade relations between the US and its major international partners are now fraught. The global growth rates of both trade and GDP have fallen sharply, and

ANNE O. KRUEGER

growth projections are being downgraded as further evidence of the economic damage caused by US trade policies comes to light. One early step by the Trump administration was to impose a 25% tariff on imported steel and a 10% tariff on aluminum. This policy hurt Canada, the European Union, Mexico, and Japan – all US friends or allies – but not China, which accounted for only 2% of US steel imports at the time. It is estimated that the metal tariffs have cost Americans $900,000

per year per job “saved.” Worse, US employment in steelmaking has continued to decline, and US steel exports have remained flat since the tariffs were introduced in early 2018. Since then, Trump bullied Canada and Mexico into renegotiating the North American Free Trade Agreement, which has now been replaced by the US-Mexico-Canada Agreement. The revised deal tightens US regulations on imports of automobiles and auto parts, and requires that

40-45% of Mexican auto workers be paid at least $16 per hour by 2023. For comparison, that is tantamount to introducing a pay floor for US autoworkers of more than $75 per hour – obviously an unthinkable proposition. The Trump administration has also forced a “renegotiation” of the South Korea-US Free Trade Agreement, with the main result being to restrict imports of steel from South Korea and to prolong a US tariff on imported light trucks. And then there is the Trans-Pacific Partnership, which the Obama administration negotiated with 11 other Pacific Rim countries (excluding China) and signed on February 4, 2016. Immediately upon taking office, Trump withdrew America from the TPP, leaving the remaining signatories to salvage the deal, which they have done under Japanese leadership. As a result, US exports to those countries are now subject to much higher tariffs than is trade among the remaining 11 members. Then came Trump’s trade war against China, which has both undercut global trade and brought the bilateral relationship to its lowest point since the aftermath of the 1989 Tiananmen Square massacre. Even with the “phase one” agreement that has just been signed, the average US tariff on imports from China will be around 19%, up from 3% before the trade war. Worse, the US has gained little from the process. Yes, the latest deal includes a Chinese commitment to import more US agricultural

and other products. But to represent a “gain,” those additional purchases would have to be great enough to compensate for the lost exports of 2018-19. Trump’s trade wrath has affected other countries as well. The US has imposed additional tariffs on imports from Turkey, Brazil, Argentina, and several developing countries, including India, which would otherwise be eligible for preferential tariff treatment under US law. Now, US-India relations are deteriorating. The US has also deployed economic and secondary sanctions against a wide range of countries. While some sanctions are obviously justified (such as those against countries involved in terrorism), the Trump administration has expanded the use of this tool with abandon. The US is now enforcing sanctions against more than 1,000 countries, businesses, and individuals per year. Moreover, the US has even threatened tariffs on $2.4 billion worth of French imports in retaliation for France’s plan to introduce a domestic tax on digital services. And that comes on top of the $7.5 billion in annual levies that the US is permitted to impose on imports from the EU as part of the resolution to a dispute between Airbus and Boeing. Fears of a US-EU trade war have created a cloud of uncertainty over auto producers and many other sectors around the world. Finally, as if all of this were not damaging enough to the global trading system, the US refuses to allow for new appointments to the WTO’s Ap-

pellate Body, which has now been rendered powerless to resolve bilateral trade disputes. In the absence of a functioning enforcement mechanism, national governments have much less incentive to abide by their WTO commitments. Ultimately, America is the big loser. The Trump administration’s efforts to reduce the US trade deficit have reduced imports from China, but imports from countries like Vietnam have risen sharply. Global investment and output, meanwhile, have fallen, partly as a result of the trade uncertainty. US exporters to the TPP successor countries now find themselves at a disadvantage. And America itself is no longer trusted as a leader in the world trading system. With geopolitical tensions growing, the US needs allies now more than ever. But many will be hesitant to engage with the current administration. In the end, Trump’s unilateral trade policy has achieved the opposite of its objectives, many of which could have been met through multilateral cooperation.

ANNE O. KRUEGER, A FORMER WORLD BANK CHIEF ECONOMIST AND FORMER FIRST DEPUTY MANAGING DIRECTOR OF THE INTERNATIONAL MONETARY FUND, IS SENIOR RESEARCH PROFESSOR OF INTERNATIONAL ECONOMICS AT THE SCHOOL OF ADVANCED INTERNATIONAL STUDIES, JOHNS HOPKINS UNIVERSITY, AND SENIOR FELLOW AT THE CENTER FOR INTERNATIONAL DEVELOPMENT, STANFORD UNIVERSITY. PROJECT SYNDICATE, 2020. WWW.PROJECT-SYNDICATE.ORG

B ANK I NG

BUSINESS24 MONDAY, FEBRUARY 3, 2020

GCB Bank pushes cash-lite agenda with G-Money service

CB Bank Limited has introduced its game-changing product, G-Money, to the banking space as part of efforts to broaden financial inclusion and convenient banking. The new interoperable service will allow both register customers and non-customers alike to send and receive money, buy and pay for goods and services as well as move funds across the financial sector. G-Money customers can also send and receive funds from any mobile money wallet or bank accounts. GCB customers could just dial *422#, go to GCB Menu and follow the process to reg-

ister, while non-customers had to visit any GCB Bank branch or agent with a valid National Identification for registration. Managing Director of the Bank, Anselm Ray Sowah, said of their new innovation: “G-Money will build a bridge across the financial chasm. This will extend banking services beyond the physical bank branch and offer round the clock service to power the national agenda of financial inclusion.” GCB Bank’s G-Money Wallet will also enable subscribers to make transactions on WhatsApp channels, mobile banking application, point of sale devices, and Automated Teller Machines (ATMs).

GhIPSS to strengthen partnership with industry players

he Ghana Interbank Payments and Settlement Systems (GhIPSS) has indicated it will continue to work closely with all it partner institutions to promote adoption and usage of electronic payments in the country. According to the CEO of GhIPSS, GhIPSS remains committed to partnering the financial services industry to embrace and develop services that will meet customer demands. The company is also ready to embrace new collaborations with fintech startups. Key to GhIPSS’ mandate is the extension of financial inclusion to the unbanked population. In line with this agenda,

GhIPSS would in 2020, continue to partner all industry players to intensify public education to increase the usage of electronic payment services in Ghana. The company will also roll out some initiatives that will further create convenience for consumers of financial services. Ghana’s Interoperable QR Code solution (GhQR) provides a standardized specification for interoperable payments across the country. The solution provides a centralized switching service at GhIPSS for QR code payments by all participants; allowing customers of financial Institutions, fintechs, and Mobile Money Operators to either

receive or make payments by scanning a quick response code on their smart phones. According to the report, the value of the transactions for 2019 was GHS781.6 million, compared to GHS212.8 million in 2018, and the volume of transaction shot up massively from 2.2 million in 2018 to 9.4 million last year. The totals for 2019 comprised of wallet-to-wallet, wallet-tobank, bank-to-wallet, walletto-e-zwich and e-zwich-towallet transactions. Wallet-to-wallet transfers were followed by wallet-tobank transactions, which recorded GHS162.7million in value and 253,500 in volume; then for bank-to-wallet, as many as 1.5 million transac-

pushed up inflation expectations with modest upside risks to the near-term outlook. Inflation outlook for 2020 Upside shocks to world market price of petrol and potential depreciation pressures could elevate inflation risks in 2020. “We expect the upward pressure from the tax measures implemented in Q4-2019 to start diminishing from the CPI over the next 3-months, especially with the expectation of a favourable exchange rate performance in Q1-2020. The recent geopolitical ten-

sions between the US and Iran have rattled crude oil prices, pushing Brent price to ~$70pb in early Jan-2020.” “Although a moderation in tension has pulled prices back to the mid-$60s, we reckon the market remains on a knifeedge as further escalation cannot be completely ruled out,” the report states. A sustained push in world market price of crude oil is a major upside risk to de-regulated ex-pump prices in Ghana, raising the risk to domestic inflation. The cedi appears to have

“G-Money will build a bridge across the financial chasm.

Policy rate stays at 16%

tions. But in terms of value, it was only GH¢552, 500. Transfers from e-zwich cards to mobile wallets also recorded an impressive GHS143.2 million in value, from some 326,000 transactions, while wallet to e-zwich saw GH¢687, 700 cash float from some 5,500 transactions. Archie Hesse noted that because of the convenience of mobile money, a lot of e-zwich users saw it as an easy way to cash their money than to go to a bank or an ATM, so many people transferred money from their e-zwich cards into their mobile wallets for easy cash cashout.

Inflation to hit about 8.8% by end of 2020 – Databank onsumer Price Index (CPI) inflation in Ghana has been projected to hit 8.8% 1% by the end of 2020, a Databank Research has stated. “We also see downside pressures from food inflation as the government’s agricultural policy of planting for food and jobs continue to support food harvest. Against the backdrop of upside risks to inflation, partly offset by downside pressures, we project a year-end 2020 CPI inflation of 8.8% ± 1%,” the report In Ghana, the CPI measures changes in the prices paid by consumers for a basket of goods and services. Inflation trend in 2019 Inflation ends 2019 lower-than-expected at 7.9%, helped by adjustments in weight allocations to the rebased CPI Ghana’s inflation curve (adjusted for the rebased CPI) generally flattened in 2019, depicting a broadly stable inflation environment for the most part of 2019. Although the re-basing of the CPI and adjustments of expenditure weights dragged inflation below 8% in Q3-2019, higher taxes and utility tariffs together with intense currency pressures in Q4-2019 have

Persons in towns and rural communities can now perform their financial transactions from the comfort of their homes using the service. “On G-Money, it’s more of providing differentiated service for our customers and allowing them to transact at an affordable rate of their convenience,” Mr. Carl Ashie, Head of Mobile Financial Services, GCB Bank, stressed.

started 2020 on a better note (than same period 2019), supported by continued central bank interventions and FX forward auction guidance. However, the potential re-emergence of fiscal concerns in the lead up to the general elections in Dec-2020 could disturb market sentiments and drag the GHS, with a sharper-than-expected depreciation posing further upside risks to the inflation outlook.

he Monetary Policy Committee of the Bank of Ghana has voted to maintain the policy rate unchanged at 16 percent for the sixth consecutive time. This has a direct impact on the interest people pay on their loans, as it determines the rate at which the Central Bank lends to commercial banks in the country. The Chairman of the Committee, Dr. Ernest Addison, who is also the Governor of the Central Bank, speaking at the press conference on Friday morning, justified the decision to maintain the policy rate despite inflation declining to 7.9 percent, well within the Bank’s medium-term inflation target. The last time the policy rate was reduced was a year ago when the Bank reduced the rate by 100 basis points to 16 percent. Dr. Addison stated that while inflationary pressures remain balanced, the committee nonetheless decided to keep the policy rate unchanged in a move that will be seen as precautionary as the country heads into December 2020 elections. “I think that is a very cool observation, inflation seems to be within our policy corridor and whether on the basis of that the Central Bank should have gone ahead to cut the policy rate, I think that in sense it helps feel that were are being cautious and the reason for why we are being cautious

is the dependent of our budget on external financing in particular non-resident participation in our bond market, it important they are very sure that the budget is fully financed before we can take any decision that may have implications on the financing of the budget.” Call for reduction Financial Economist and Senior Lecturer at the University of Ghana Business School, Dr. Lord Mensah ahead of today’s announcement said it will be prudent for the Bank of Ghana to reduce the Monetary Policy Rate. According to the Economist, a reduction from the current 16% rate will improve the liquidity position in the country. The policy rate which determines the rate at which commercial banks borrow from the Central Bank has been kept at 16% for the past 12 months. Dr. Lord Mensah said if the country wants to adopt an expansionary approach then there will be the need to reduce the policy rate. He noted that the reduction will make it easy for people to have access to funds to carry out their activities. “You want to adopt that kind expansionary approach where you will lower the rate for people to have access to funds through the financial system, as we’ve done the cleanup already in our medium of transmission of funds.”

BUSINESS24 MONDAY, FEBRUARY 3, 2020

PARLI M E NTARY

BUSINESS24 MONDAY, FEBRUARY 3, 2020

B U SI N ES S

Petroleum Hub Dev’t Corporation Bill to be presented before Parliament

he Ghana Petroleum Hub Development Corporation Bill, 2019 is expected to be laid before Parliament in the first meeting of the fourth session, a press statement has revealed. According to a press statement from the Public Affairs of Parliament, the Ghana Petroleum Hub Development Corporation Bill, 2019 is among a host of bills to be considered in this meeting. Government has set an ambition of developing the country’s petroleum and petrochemical sector and to this end Cabinet sometime last year approved of it and works at establishing a petroleum hub in the Western Region to house all infrastructure projects in Ghana’s petroleum industry is expected to take off when Parliament gives its legal backing. The operationalisation of the Act aims to promote and develop a petroleum and petrochemicals hub and to provide for all related matters

in the industry to maximise gains from the petroleum and petrochemical industry. The Act indicates the establishment of a Corporation, purposely to plan and implement strategies for the development of a petroleum and petrochemicals hub; provide infrastructure for companies and service providers for the development of the petroleum and petrochemicals hub; develop and implement a Ghanaian Content and Ghanaian Participation Plan for the development of the industry, among other key functions. Importantly, the Corporation is mandated to enter into joint ventures with companies operating within the petroleum and petrochemicals hub and establish mechanisms to ensure the requisite transfer of skills and knowledge to Ghanaians engaged in various activities in the industry. This is expected to broaden the horizon of Ghanaian participation with regards to local content which will result in the reduction of foreign

Gov’t ‘arranging’ a new company to take over ECG—MP alleges

technocrats and experts in the oil and gas industry who are brought into the country to perform some specific technical assignments that may not be readily available in the country. The move by the government forms part of a major initiative to create more jobs in the oil and gas sectors of the economy and provide investment opportunities for interested companies within and outside Ghana. Background The policy document was designed by the Ministry of Energy as the industry policy formulator, in consultation with sector stakeholders including the Petroleum Commission and the National Petroleum Authority (NPA) being the upstream and downstream industry regulators respectively as well as some key bodies. The Corporation is expected to collaborate with all relevant public institutions to develop the petroleum and petrochemicals industries.

Parliament: Rent Amendment Bill back on the table

he Ranking Member of the Mines and Energy Committee, Adam Mutawakilu, has stated that government is planning an “undercover” bid to get a new company to take over the Electricity Company of Ghana (ECG) “Information we are picking is that they are seriously negotiating for ECG to be handed over to another company, we are monitoring it and we will resist it with all out strength,” he told the press at Parliament House last Friday. He continued: “This one they are not doing it like PDS, they are doing it like management contract and they are keeping it quite and one day they will just announce it to us that this company has taken over PDS, another form of PDS, undercover dealings and we will not accept it”. According to Muthawakilu, who is also the Member of Parliament for Damango, government should allow ECG to continue to be the main company in respect of the distributing sector of the country’s energy mix. When he was pushed to name the new company, he maintained that with time he will provide the name and

reckons that the new arrangement is wrong because there is lack of transparency. “What government is doing now should have been made known for the public to scrutinize it,” he said. According to the lawmaker, “dumsor” is rearing its head again as evidenced in the recent power cut and that it is only being covered in the name of “planned maintenances”. “We used to have dumsor, but currently it has become so severe that they are not able to announce which area there would be planned maintenance and you all realized that for more than two months now, there have been routine dumsor

that is going on everywhere in this country,” he noted. For him, if government does not resolve the issue, the situation will intensify because there government has liquated all the available resources for instance ESLA, with most of the thermal plants unable to pay independent power producers. He said the ECG will have to come up with a timetable because the situation is having a lot of impact on businesses. “People are not aware of when they will get lights off, if they know today they will get lights off, they will plan ahead”.

he first meeting of the fourth session of the seventh Parliament will deliberate on 20 bills, including the Rent (Amendment) Bill, 2019, a press statement from the legislature’s Public Affairs Directorate, has announced. The new Rent Bill seeks to among other things, ensure access to decent housing for the majority of Ghanaians; protect the rights of both tenants and landlords and also put to check the current exploitations pervading the housing sector.

Stakeholders in the real estate and housing space have been advocating for a review of the Rent Act and this will come as a relieve if parliament goes ahead to approve it. The bill which has been in the works for some time is expected to be laid in the house before the close of session. The new Rent Bill will be validated and all the anomalies of the existing Rent Act removed, will promote a balance between the needs of tenants and landlords.

TO U RI SM

BUSINESS24 MONDAY, FEBRUARY 3, 2020

Tourism’s role in Rural Development across Africa highlighted at 11th INVESTOUR

he role of tourism and investment in African development took centre stage at the FITUR trade fair in Madrid as sector leaders joined the World Tourism Organization (UNWTO) for the 11th edition of INVESTOUR (Tourism Investment and Business Forum for Africa) which saw the participation of over 20 African Ministers and Heads of delegations. Supported by Casa Africa (Representing the Spanish Government), the International Tourism Fair of Madrid (FITUR) as UNWTO’s official partners and in collaboration with Côte D’Ivoire, this latest meeting of Investour focused on the continent’s potential on creative industries as well as on the potential benefits of diversifying the tourism sector, in particular as a means of driving rural development. Against the backdrop of FITUR, the round table discussion explored the untapped potential of gastronomy tourism and the growing African fash-

ion industry, particularly with regards to attracting international tourists. In addition, a session was also dedicated to the presentation of 10 projects aiming at the development of tourism in various countries in Africa, such as South Africa, Zambia, Comoros, the Democratic Republic of Congo and Côte d’Ivoire. The forum came on the back of the UNWTO General Assembly unanimously approving its Agenda for Africa 2030, a roadmap and strategic framework for tourism for sustainable development and inclusive growth. At the same time, the 11th edition of INVESTOUR was held during UNWTO’s Year of Tourism and Rural Development, with this theme the main focus of discussions between tourism leaders from both the public and private sectors. Opening INVESTOUR 2020, UNWTO Secretary-General Zurab Pololikashvili said: “The creative industries, including a thriving fashion industry,

culture and gastronomy are all increasingly relevant ‘pull factors’. They are encouraging visitors to see another side to Africa. Investment in these sectors will pay dividends, not just for investors themselves but, equally or more important, also for African society as a whole.” Also during FITUR, UNWTO released its latest data on international tourist numbers and trends. The data shows that international arrivals to African destinations reached 71 million in 2019 and grew by 4% when compared with the previous year. This trend is expected to continue over the years ahead, and UNWTO has stated its commitment to supporting its African destinations grow their tourism sectors responsibly and sustainably. Next month, Côte d´Ivoire will host the 1st UNWTO Global Tourism Investment Forum in Africa, a landmark event for the continent and its tourism sector. (SOURCE: VOYAGESAFRIQ)

Africa: Rwanda to Scrap UNWTO Statement on the Novel Coronavirus Visa Fees Outbreak Africa

wanda is considering scrapping visa fees for citizens of the Commonwealth nations as well as the African Union and La Francophonie member countries, President Paul Kagame has announced. Kagame made the announcement recently at the International School for Government at King’s College in London, while speaking about Rwanda’s transformation journey. The conversation was moderated by Alexander Downer, the Executive Chair of the institution. The President emphasised Rwanda’s commitment to trade with the rest of the world. “We are soon considering exempting citizens of the Commonwealth, as well as the African Union and the Francophonie, from paying visa fees when entering Rwanda,” he said. The move was expected to ease access to Rwanda for a significant section of the international community. The Commonwealth has 53 members while Francophonie has 54 member states across the world.

To date, only 17 African countries were exempted from paying visa fees. The tally of African countries, Commonwealth member states and La Francophonie comes to about 95 countries set to benefit from the move. This, development experts say, would among other things increase chances of Rwanda hosting global summits due to ease of access, among other benefits. The development could also see Rwandans easily access countries from across the in the event of reciprocity by beneficiary countries. Kagame who was in the UK for the UK-Africa Summit said that there is a positive momentum in terms of the relationship between the United Kingdom and Africa, including Rwanda. “The timing is good. Britain is looking to re-imagine its global trade and investment arrangements. And later this year, the world’s largest new free trade area will become operational in Africa, covering nearly the entire continent,” he said. (This Daylive).

he World Tourism Organization (UNWTO) is closely monitoring developments related to the outbreak of novel coronavirus (2019-nCoV), both in China and worldwide and is cooperating closely with the World Health Organization (WHO). Since the very start of the emergency, the Chinese authorities have acted swiftly and decisively. UNWTO expresses its solidarity with the Chinese people, its government and its tourism sector at these challenging times. In recent years, China has emerged as a true global

tourism leader, both as a source market and as a leading destination in itself, providing livelihoods for millions of people across the country. And tourism will offer a valuable lifeline as China recovers and rebuilds from this setback, just as the sector has proven its resilience many times before. The responsibility of tourism During times of crisis, tourism has to live up to its responsibility as an integral part of wider society. The sector must put people and their wellbeing first.

The cooperation of the tourism sector will be vital in stopping the spread of the virus and limiting its impact on people and communities. Tourists also have a responsibility to inform themselves before they travel in order to limit the threat of transmission, and they should follow the recommendations of the WHO and their own national health authorities. Tourism is vulnerable to the

effects of public health emergencies and is already being affected by this outbreak. However, it is too early to fully estimate the impacts this outbreak will have. UNWTO as the specialized UN agency for tourism will continue supporting WHO, the lead UN agency for the management of this outbreak by advising and providing tourism specific guidance.

BUSINESS24 MONDAY, FEBRUARY 3, 2020

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BUSINESS24 MONDAY, FEBRUARY 3, 2020

Eni Begins Production From Agogo Oilfield Offshore Angola BY ZACKS INVESTMENT RESEARCH

ni S.p.A recently started production from the Agogo oilfield, located offshore Angola. Notably, the production commencement in the 15/06 block occurred only nine months following its discovery. It was supported by operational synergies from the Floating Production Storage Offloading (FPSO) vessel Ngoma, located just 15 kilometres away from the oilfield. The Agogo-1 well was drilled at a water depth of approximately 1700 meters and currently produces 10,000 barrels of oil per day. The output is expected to double in the next few weeks. The oilfield is anticipated to have 650 million barrels of oil. Encouragingly, new delineation wells will be drilled to uphold the field’s further potential. The company’s initiatives to start production in just nine months, with the

help of existing infrastructures that maximize project value, are commendable. West and East Hubs are two running projects of the company in the Block 15/06, which has several discoveries and two FPSO platforms under its belt. The production hubs incorporate a total of eight

fields and 42 underwater wells. Total oil output from the two platforms surpassed the 180-million barrels mark by 2019-end. The company, along with joint venture partners, Sonangol and SSI Fifteen, had launched a new exploration program in the block in sec-

ond-half 2018. The exploration campaign led to five new discoveries that are expected to hold 2 billion barrels of oil. These developments strengthened Eni’s footprint in the region and boosted organic growth. The company is the operator in the block with a 36.8421% stake. Its equity pro-

Sahara Group backs gender equality at OECD summit in Paris

nsuring equal access to resources and opportunities regardless of gender is essential for promoting sustainable development across the globe, Pearl Uzokwe, Director, Governance and Sustainability, Sahara Group, has said. Uzokwe who spoke in Paris at the Organization for Economic Co-operation and Development (OECD) Private Finance for Sustainable Development Conference said galvanizing private finance alongside other sources of finance for gender equality was not only urgent but critical for sustained wealth creation, especially in developing countries. Uzokwe said Sahara Group, a leading international energy and infrastructure conglomerate with operations in over 38 countries across Africa, Middle East, Europe and Asia, had consistently led the cause of equal access and opportunities in the private sector through support for gender related projects and policies that support employment and growth within the organization which is free of any gender-based considerations. “Sahara Group is passionate about the issue of gender equality and we continue to promote and invest in projects that empower men and women to pursue economic prosperity. We are also entrenching gender diversity at the board level of the organization in line with global trends in corporate governance,” she said. Noting the need for women empowerment as a precursor to achieving gender equality, Uzokwe said governments and businesses need to be “more deliberate and committed” in their support for activities that will connect girls and women to transformative economic opportunities. She said strengthening the private sector and ensuring

duction from Angola currently stands at around 145,000 barrels of oil equivalent per day. In a separate announcement, the company reported that it has won a new exploration and production license in the Namibe basin offshore Angola. The local government assigned block 28 to the company. Therein, it holds an operating interest of 60%. The block is located 10 kilometres away from the coast, at a water depth of 1000-2500 meters. Price Performance Eni’s shares have slipped 7.3% in the past year compared with 6.9% fall of the industry it belongs to. Zacks Rank and Stocks to Consider Currently, Eni has a Zacks Rank #5 (Strong Sell). Some better-ranked stocks in the energy sector include Chevron Corporation (NYSE:CVX) , Repsol (MC:REP) SA (OTC:REPYY) and Enbridge Inc. (NYSE:E) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy)

Chevron Announces Fourth Quarter 2019 Results

C WALE AJIBADE, EXECUTIVEDIRECTOR, SAHARA GROUP

well-defined and unbiased entry pathways are available at all levels. “Sahara Group aligns with the position that empowering women and eliminating the hurdles to success for women in both the formal and informal sectors has the potential to set the tone for attaining several sustainable development goals, with special emphasis on goal 5 that speaks to gender

equality,” she affirmed. The OECD conference noted that a collaborative approach involving the government, business, civil society and development agencies will be required to achieve the task as raising private finance towards promoting gender equality. Participants called for an enabling environment for the private sector to thrive and support female entrants, add-

ing that diversity remained the most potent driver of innovation that is required to make businesses thrive and prosper. They also noted that since women provide 50 percent of that innovation ratio, ignoring their unique needs and offerings would be a cost too high for any organization and country.

stocks here. Chevron’s bottom line for 2020 is expected to rise 5.5% year over year. Repsol’s bottom line for 2020 is expected to rise 51% year over year. Enbridge’s revenues for fourth-quarter 2019 is expected to rise 8% year over year. Biggest Tech Breakthrough in a Generation Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity. A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft (NASDAQ:MSFT) in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.

hevron Corporation has reported a loss of $6.6 billion ($(3.51) per share - diluted) for fourth quarter 2019, compared with earnings of $3.7 billion ($1.95 per share - diluted) in the fourth quarter 2018. Included in the current quarter were previously announced upstream impairments and write-offs totaling $10.4 billion associated with Appalachia shale, Kitimat LNG, Big Foot and other projects. The company also recognized a $1.2 billion gain on the sale of the U.K. Central North Sea assets in the fourth quarter. Foreign currency effects decreased earnings in the fourth quarter 2019 by $256 million. Full-year 2019 earnings were

$2.9 billion ($1.54 per share - diluted), compared with $14.8 billion ($7.74 per share - diluted) in 2018. Included in 2019 were net charges for special items of $8.7 billion, compared to net charges of $1.2 billion for special items in 2018. Foreign currency effects decreased earnings in 2019 by $304 million. Earnings excluding special items and FX reflect net income (loss) excluding special items and foreign currency effects. For a reconciliation of earnings excluding special items and FX, see Attachment 5. Sales and other operating revenues in fourth quarter 2019 were $35 billion, compared to $40 billion in the year-ago period

E D U C ATI O N

BUSINESS24 MONDAY, FEBRUARY 3, 2020

‘Free SHS’ to cover TVETs next year BY EUGENE DAVIS

deputy Minister of Education in charge of Technical, Vocational Education and Training (TVET), Mrs. Gifty Twum-Ampofo, has revealed that students placed under the National Vocational and Training Institutes (NVTIs) across the country will enjoy fee-free second-cycle education beginning September 2021. To achieve this feat, she said the Ministry of Education has sent two bills to Ghana’s Parliament namely: the Education Regulators Bill and Pre-Tertiary Bill—which, when passed, will move NVTIs from its current mother-ministry to the Ministry of Education to allow technical and vocational students benefit from the Free SHS programme. NVTIs are currently under the Ministry of Employment and Labour Relations, making it very difficult for them to be classified as second-cycle insti-

tutions which disqualify them from the Free SHS policy. She told the press at the launch of the skills gap analysis and audit report in Accra that the government is working assiduously to bring all skilltraining institutions under the supervision of the Ministry of Education. “It is only second-cycle institutions under the Ghana Education Service (GES) that benefit from the Free SHS policy which include our technical and vocational schools under the Ghana Education Service. This Pre-Tertiary Bill is ensuring that the re-alignment of all the skill training institutions and TVET centers are

“Teach them smart solutions,” says out-of-the-box thinker Monique Ntumngia, founder of Green Girls, at 2020 African Economic Outlook launch

2019/2020 Students’ loan disbursement ready

it very difficult for them to be classified as second-cycle institutions which disqualify them from the Free SHS policy. She told the press at the launch of the skills gap analysis and audit report in Accra that the government is working assiduously to bring all skilltraining institutions under the supervision of the Ministry of Education. “It is only second-cycle institutions under the Ghana Education Service (GES) that benefit from the Free SHS policy which include our technical and vocational schools under the Ghana Education Service. This Pre-Tertiary Bill is ensuring that the re-alignment of all the skill training institutions and TVET centers are re-aligned and brought under the supervision of the Ministry of Education. There has been one institution of training or

the other,” she noted. Mrs. Twum-Ampofo added that technical and vocational institutions do not have mandate for training and teaching hence the inadequate budgetary allocations to that space. “For that reason, are bringing all these institutions under the Ministry of Education and we can only do that with the Bill”, she said. According to the deputy minister, government has already procured a loan facility

to renovate existing vocational and technical infrastructure, with plans to add about 75% new facilities together with equipment, training of teachers, as well as the provision of vehicles for the management and that of the students. She indicated: “This will ensure that by September next year, when we are doing placement, we are going to place students in those NVTIs to also enjoy free SHS”.

re-aligned and brought under the supervision of the Ministry of Education. There has been one institution of training or the other,” she noted. Mrs. Twum-Ampofo added that technical and vocational institutions do not have mandate for training and teaching hence the inadequate budgetary allocations to that space. “For that reason, are bringing all these institutions under the Ministry of Education and we can only do that with the Bill”, she said. According to the deputy minister, government has already procured a loan facility to renovate existing vocational and technical infrastructure, with plans to add about 75% new facilities together with equipment, training of teachers, as well as the provision of vehicles for the management and that of the students. She indicated: “This will ensure that by September next year, when we are doing placement, we are going to place students in those NVTIs to also enjoy free SHS”.

he Students Loan Trust Fund (SLTF) has said it will soon disburse all required funds to beneficiaries for the 2019/20 academic year. A statement signed by M.r George Ferguson Laing, the Senior Public Relations Manager said the SLTF was engaging relevant stakeholders such as the Ministries of Education and Finance, and GETFUND to make financing available to pay students as soon as possible. The Fund acknowledged calls from some student groups for speedy disbursement of loans for the 2019/2020 academic year. “We recognize that students in over 100 tertiary institutions across the country rely on student loans for various uses, including the payment of fees, accommodation, and the purchase of books as well as general living expenses. We are working assiduously to restore the situation to normalcy.” From the beginning of the academic year, the statement said SLTF had been disbursing loans to students in batches. However, the challenge was that the Trust Fund was not able to pay all beneficiaries at the same time. The main sources of funding for the Fund, the statement explained were receipts from the GETFUND, Communications Service Tax and repayments from beneficiaries of the Fund The Fund for some time now had been forced to rely heavily on recovered loans to disburse to students due to delays in the release of funds from the other sources. The statement said the Fund as a result, had employed various strategies to recover funds from borrowers. “Much as our recovery

strategies have been successful, funds recovered are not adequate to disburse to all students at a go. “Over the past few days, the management of the Fund has met with various student groups, including executives of the National Union of Ghana Students, the University Students Association of Ghana, the Ghana Union of Professional Students and the Private University Students Association of Ghana,” the statement said. It noted that management of the Fund, explained the challenges they faced to the student leadership, and urged them to continue to exercise restraint as Government worked to resolve the issues. The Fund for some time now had been forced to rely heavily on recovered loans to disburse to students due to delays in the release of funds from the other sources. The statement said the Fund as a result, had employed various strategies to recover funds from borrowers. “Much as our recovery strategies have been successful, funds recovered are not adequate to disburse to all students at a go. “Over the past few days, the management of the Fund has met with various student groups, including executives of the National Union of Ghana Students, the University Students Association of Ghana, the Ghana Union of Professional Students and the Private University Students Association of Ghana,” the statement said. It noted that management of the Fund, explained the challenges they faced to the student leadership, and urged them to continue to exercise restraint as Government worked to resolve the issues.

AU TO M O B I L E

Bentley Motors named Top Employer as it continues to nurture Future Talent

s the company begins its second century, and the start of the next extraordinary journey, Bentley Motors has once again maintained its position as a Top Employer. Awarded by the internationally recognised Top Employers Institute, this year marks the ninth consecutive year Bentley has achieved this admired status. Following a comprehensive review of the business, the Institute highlighted Bentley’s progressive focus on future talent, continuous professional development and offering an engaging employee experience. Commenting on the achievement, Dr. Astrid Fontaine, Member of the Board for People, Digitalisation & IT, said: “We feel honoured to receive the Top Employer Award for the ninth consecutive year. This recognition is important to ensure our sustainable future business success. On the one hand, it helps us retain existing talent by highlighting a workplace environment that develops our people, ensuring they have the necessary skills to meet our future business needs. “On the other hand, the

KODA AUTO has founded its fourth ŠKODA AUTO DigiLab unit, in the Indian city of Pune. ŠKODA AUTO DigiLab India will support the core business of ŠKODA AUTO Volkswagen India Private Limited by developing digital and mobility solutions. In addition, a dedicated software development centre has been established by Volkswagen IT Services India Private Limited with offices in Gurugam and Pune to support ŠKODA AUTO’s IT requirements globally and develop digital solutions. The services, content and mobility solutions developed by the two new organisations will benefit all Volkswagen Group brands in India. Both activities constitute the INDIA 2.0 project - A ŠKODA AUTO led market strategy for the entire Volkswagen Group in the Indian market. ŠKODA AUTO CEO, Bernhard Maier, explains, “With ŠKODA AUTO DigiLab India, we are consistently expanding our global network. India is among the innovation drivers when it comes to digitalisation. The average age of the population will be just 29 years in 2025. The majority of our customers in India have grown up with smartphones and expect tailor-made mobility services and seamless connectivity in the car. This is exactly what we are undertaking at our new ŠKODA AUTO DigiLab India in partnership with local hightech companies.“ Gurpratap Boparai, Managing Director of ŠKODA AUTO Volkswagen India Private Limited, added, “With the new

BUSINESS24 MONDAY, FEBRUARY 3, 2020

award supports our initiative to find and attract the very best talent, who are driven by an enriching employee experience and opportunities.”

The annual international research - undertaken by the Top Employers Institute recognises leading employers around the world that provide excellent working conditions, make every effort to continuously enhance recruitment processes and nurture and develop talent throughout all levels of the business. The Top Employer accolade follows further recognition for the Bentley business. In December, Bentley was named as the Most Admired Car Company in a leading survey by prominent business magazine, Management Today. Judges remarked on the exceptional quality of products and classed Bentley as a driving force for the future of the automotive industry. Continuing its focus on the future, this week Bentley launched its latest trainee recruitment drive, with 76 vacancies covering apprentices, undergraduates and graduate positions. A range of opportunities can be found at www.bentleycareers.com, including roles in Digital, Information Technology, Sales & Marketing, Human Resources, plus Engineering and Manufacturing. (VW

ŠKODA establishes Auto DigiLab India

digital services and mobility solutions provided by ŠKODA AUTO DigiLab India and our dedicated Software Development Centre in Gurugram and Pune, we want to create a diverse digital ecosystem for our customers. Just like the other members of ŠKODA AUTO’s growing global innovation network, ŠKODA AUTO DigiLab India will also develop mobility solutions and services – always striving

to offer real added value for the customer. ŠKODA AUTO DigiLab India may also support ŠKODA AUTO’s core business globally with new technologies and digital solutions.” New IT units make use of the subcontinent’s leading digital competence The ŠKODA AUTO DigiLab India team will join forces with technology companies and promising start-ups in the country, in turn promote the

country’s intellectual capital, strengthen the local talent pool, and connect the industry with local start-ups to expand India’s position within the global IT industry. ŠKODA AUTO DigiLab India aims to make use of the immense potential the subcontinent has to offer as a global market leader in software and technology. By working on digital development projects and delivering solutions

tailored to the Indian market, ŠKODA AUTO DigiLab India supports the Group’s core business in India. Wherever possible, other ŠKODA markets will also benefit from these developments. To this end, ŠKODA AUTO DigiLab India will be working closely with the car manufacturer’s innovation hubs in the Czech Republic, Israel and China. The dedicated Software Development Centre with

offices in Gurugram and Pune, has been set up as a part of Volkswagen IT Services India Private Limited, is also taking advantage of the country’s huge IT potential, supporting the IT departments of both ŠKODA AUTO and Volkswagen Group. The centre develops program applications and digital solutions that create an even more diverse customer experience for car buyers in India and is working for all of the Volkswagen Group brands present on the Indian market. Digitalisation is an integral part of the INDIA 2.0 project led by ŠKODA AUTO The ŠKODA AUTO DigiLab in Pune is an integral part of the India 2.0 project led by ŠKODA AUTO, whereas the Volkswagen Group confirmed investments of around one billion euros. ŠKODA has consistently established its innovation hubs in important markets and high-tech regions. ŠKODA AUTO DigiLab in Prague was the first of the now four centres, which opened at the beginning of 2017. The first spin-off followed in January 2018, commencing operations in the Israeli IT hotspot of Tel Aviv as a joint venture between the Praguebased ŠKODA AUTO DigiLab and the local importer Champion Motors. The third hub in China joined the team in April 2019 and has since been testing digital prototypes and mobility services for Chinese market. These agile business organisations, which function as start-ups in the IT industry, allow ŠKODA to sustainably strengthen its expertise in both innovation and digital development.

AF RI CA

BUSINESS24 MONDAY, FEBRUARY 3, 2020

Angola: Total Extends All Block 17 Production Licenses until 2045

otal, operator, and its partners Equinor, ExxonMobil and BP have signed an agreement with national oil, gas and biofuels agency ANPG and state-owned Sonangol of Angola, to extend their consortium’s production licenses to 2045. As part of the agreement, Sonangol will obtain a 5% interest in Block 17 on the effective date and an additional 5% interest in 2036. Additionally, the consortium will pay some production bonuses to the State of Angola along the life of the license and will spend 20M$ for social programs. Located 150 kilometers off the Angolan coast in water depths ranging from 600 to 1,400 meters, Block 17 has been a true success story, with almost 3 billion barrels of oil produced since 2001 by four floating production, storage and offloading (FPSO) units: Girassol (2001), Dalia (2006), Pazflor (2011) and CLOV (2014). Currently producing around 440,000 barrels of oil equivalent per day, the potential of this very prolific block is still high, with more than 1 billion barrels yet to be produced. Three short-cycle brownfield projects — Zinia Phase 2, CLOV

Phase 2 and Dalia Phase 3 — are currently under development on Block 17 to add 150 million barrels of resources, and other brownfield projects for extending the production of Pazflor, Rosa, Girassol and Dalia are under study. Additional exploration campaigns might also help unlock further resources and two wells are already planned to be drilled in 2020. “We are very pleased to continue the Block 17 success story in Angola. This golden block has allowed us to demonstrate our deep offshore excellence over the past 20 years with numerous technological developments and innovations,” stated Patrick Pouyanné, Chairman and Chief Executive Officer of Total. “This is a significant milestone in our long history in the country and illustrates

our commitment to continue developing Angola’s energy sector.” “We are confident that Total and its partners are committed to examining a number of short-term investment opportunities that have already been identified in order to maintain the production above 400,000 barrels of oil equivalent per day through 2024,” commented Paulino Jeronimo, Chief Executive Officer of ANPG. “We also look forward to exploring the vicinity in order to add further resources to the Block 17 and, more broadly, for the Country.” “Sonangol is proud to further diversify its portfolio through this impressive asset and to join the successful Golden Block adventure.” noted Sebastião Gaspar Martins, Chairman and Chief Executive Officer of Sonangol. After the entry of Sonangol, the Block 17 contractor group comprises Total, operator with a 38% working interest, alongside Equinor (22.16%), ExxonMobil (19%), BP (15.84%), and Sonangol (5%). Total in Angola Total has been present in Angola since 1953, where it

B U SI NE S S

today employs around 1,500 people. All five of the Group’s business segments operate in the country: Exploration & Production, Gas, Renewables & Power, Refining & Chemicals, Marketing & Services, and Trading & Shipping. Total’s equity production averaged 211,000 barrels of oil equivalent per day in 2018 from operated blocks 17 and 32, and from non-operated assets 0, 14, 14K, and Angola LNG. Total is the country’s leading oil operator with close to 45% of Angola’s operated oil production. Total also operates Block 17/06 in the Lower Congo Basin, Block 16, location of the Chissonga discovery — both in development phase —, and Block 48 in the emerging ultra-deep offshore play and still in exploration phase. In the gas sector, Total holds a 13.6% stake in the 5.2-million-ton-per-year Angola LNG liquefaction plant, which is supplied with associated gas from the country’s producing offshore oil fields. Total also recently entered the New Gas Consortium as a key player in developing Angola’s natural gas resources. SOURCE: TOTAL

Kenya to up Addis electricity imports

enya is set to increase its energy imports from Ethiopia as the two countries activate a bilateral agreement on power trade. Kenya and Ethiopia have a pact to trade in electricity at fairly low costs, but this has over time been hampered by lack of proper infrastructure. Kenya is, however, in the process of completing the Eastern Electricity Highway, which the Kenya Electricity Transmission Company (Ketraco) has termed a game-changer. The agreement enables Kenya to import or export to Ethiopia up to 400MW of electricity. The Energy and Petroleum Regulatory Authority (EPRA) said yesterday Kenya will this year import 200MW from Ethiopia as among the major initiatives that are expected to tame electricity prices by limiting dependence on thermal power plants. The power sector regulator also expects small-scale power plants, including some hydro plants run by Kenya Tea Development Agency-owned factories, to start feeding into the grid in the course of the year. The additional cheap power from Ethiopia is expected to offset the gap that may be created by the decommissioning of geothermal power production units at Olkaria in

BY MACHARIA-KAMAU

Naivasha. “This year (2020) will see additional 200MW from Ethiopia bilateral agreement, 3.6MW from KTDA Mathioya small hydro project and 0.5MW from Kianthumbi small hydro project. The year will also see the decommissioning of Olkaria 1 units 1 and 2 (installed capacity of 30MW),” said EPRA Director General Pavel Oimeke in a statement. The 500 kilovot line that will enable increased importation of power originates from Wolayta Sodo in Ethiopia and terminates at Suswa. The total length of the transmission line is 1,125km, out of which approximately 434km is in Ethiopia and 606km in Kenya. Each country was charged with building its own bit of the line. The Kenyan end has faced major delays having started in 2012 owing to myriad challenges, including the collapse of a contractor that was initially given the job as well as the lengthy land acquisition process for the right of way. Ethiopia is the largest hydropower producer in the region and is currently implementing its Grand Ethiopian Renaissance Dam that was designed to produce 6,000MW. Kenya also imports electricity from Uganda to bridge gaps in local generating capacity. The Standard.

Nigeria: Electricity consumers to pay more as DisCos hike tariffs BY ADEOLA YUSUF

Ugandan medics deploy AI to stop women dying after childbirth

gandan doctors are giving new mothers artificial intelligence-enabled devices to remotely monitor their health in a first-of-its-kind study aiming to curb thousands of preventable maternal deaths across Africa, medics and developers said. Doctors at Mbarara Hospital in western Uganda will give devices to more than 1,000 women who have undergone caesarean section births to wear on their upper arms at all times. The phone-sized gadget transmits patients’ data such as respiratory rate, oxygen levels, pulse, temperature and blood pressure to a desktop or mobile platform. Algorithms detect at-risk cases and alert doctors. Joseph Ngonzi from Mbarara University of Science and Technology, which is conducting the study, said it would help “improve mon-

itoring in a resource-constrained environment”. The World Health Organization says almost 300,000 women worldwide die annually from preventable causes related to pregnancy and childbirth - that’s more than 800 women every day. Sub-Saharan Africa accounts for more than twothirds of those deaths, due to poorly-equipped medical facilities and limited healthcare workers. U.N. figures show more women and newborns survive now than ever before but nations committed to ending maternal deaths face funding shortfalls, according to women’s rights groups. New York-based software firm Current Health, which developed the technology, said the technology had the potential to improve postpartum healthcare for women across Africa. CEO Chris McCann said

the devices - which require wireless internet and electricity - may not yet be practical for some African countries where connectivity and power is unreliable. McCann said internet and electricity coverage was rapidly expanding across the continent. Addressing concerns over patients’ data privacy, he said participants provide written, informed consent - and their data is encrypted. Uganda enacted data protection and privacy legislation in 2019. “We only use that data for the purposes of delivering our service and making it better for patients,” he said. “I believe patients should clearly know exactly what is happening with their data, and we make this very transparent to them.” Reuters

lectricity consumers in Nigeria, who are still battling with estimated billing and insufficient power supply, will pay more tariff and cost on meters beginning from this week. Electricity Distribution companies (DisCos) have, according to checks by New Telegraph, slated February 1 to begin the implementation of 2.5 per cent increase, which had raised Value Added Tax (VAT) on meters to 7.5 per cent. VAT on tariffs have also been adjusted to accommodate the new 7.5 per cent rate, and service charges on installment meter payments through Meter Assets Provider (MAP) will be reviewed to accommodate the new VAT charge. The Eko Electricity Distribution Company (EKEDC), one of the two major power utility firms in Lagos, commercial hub of Nigeria, confirmed this to this newspaper yesterday, noting that from February 1, the prices of meters sold to customers under the Meter Asset Provider scheme would be reviewed to reflect the increase in VAT recently implemented by the Federal Government. This, the EKEDC Corporate Communications General Manager, Godwin Idemudia, said in a statement, was in compliance with the 2019 Fed-

eral Government’s directive which would see an increase in VAT from 5 per cent to 7.5 per cent from the first day of February 2020. Idemudia further stated that customers should now expect to pay “N39,765.86 (VAT inclusive) for a single-phase meter and N72,085.68 (VAT inclusive) for a three-phase meter.” The power firm also disclosed that VAT on tariffs have been adjusted to accommodate the new 7.5 per cent rate, and service charges on installment meter payments through MAP will be reviewed to accommodate the new VAT charge. Meanwhile, the management of Niger Delta Power Holding Company (NDPHC) has decried a situation whereby the available power it generates has not been getting to the end-users or final consumers. Managing Director of NDPHC, Mr. Cheidu Ugbo, who said this in Oke Aro, Ogun State, maintained that his company is collaborating with the Ministry of Energy and Mineral Resources in Lagos State to find lasting solution to the challenges of stranded power and ensure that such stranded power gets to the final consumers. According to him, “We have electricity to serve Nigerians, but it is stranded either at power stations or transmission stations like this one, because there are few challenges (which are) why people are not being serviced and the DisCos

cannot pick the load from here. “We are collaborating seriously with the Lagos State government to make sure that this available electricity gets to the end-users.” He said the project, which includes construction of 132Kv Multi Circuit Transmission Lines, is facing the problem of Way Leave, which means a right of way to be granted by landowners to erect the transmission lines. “The project has been on, but we have serious Way Leave challenges. We have enlisted the support of Lagos State Government and also Ogun State Government and they are actively trying to assist us to resolve the challenges along the line routes. “We have come to see, to assess and know where the challenges are. Lagos State Government has a programme and they need to see availability of energy here and ascertain that they can actually take the energy here and make sure it gets to the consumers in Lagos State. “After the site visit, I’m sure the commissioner has seen and he is convinced that energy here is stranded as a matter of fact because we have seven feeders going out of here that should have taken at least 100MW, but the feeders between the two distribution companies (Ibadan and Ikeja DisCos) are doing less than 30MW,” he said. independent.ng

BUSINESS24 MONDAY, FEBRUARY 3, 2020