Business24 Newspaper (May 4-2020) by Business24 Online

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MONDAY MAY 4, 2020

First quarter cargo traffic tipped to fall by 15% Education minister says unopposed in principle to online exams MORE ON PAGE 3

BY PATRICK PAINTSIL

The total volume of cargo handled by the country’s two seaports, Tema and Takoradi, has been predicted to drop by some 0.5m metric tonnes in the first quarter compared to a year ago, as the Covid-19 pandemic continues to restrict trade and wreak havoc on global supply chains. According to the Ghana Chamber of Shipping, the figure represents a 15 percent fall from the 3.5m metric tonnes recorded in the first quarter of 2019. “One is wondering whether

we will be able to make 3.5m metric tonnes of cargo traffic for this quarter as was attained last year,” CEO of the chamber Dr. Kofi Mbiah told Business24 in an exclusive interview. “We are yet to get the final figures for the quarter, but we estimate that, looking at the disruptions to the supply chain, we are likely to lose about 15 percent of our previous tonnage for same period 2019.” The chamber also predicts the impact of the coronavirus to reflect in the full year cargo traffic figure, which was a little over 20m metric tonnes in 2019.

The severity of the impact, however, is tied to how quickly the crisis would be over, with the shipping business likely to be hit harder should the crisis linger on beyond mid-year. Dr. Mbiah indicated: “Certainly, by close of year we are likely to get some impact, though one can’t tell the exact nature. If we are out of this crisis by June, there will be some impetus towards recovery, but if we were to be in this crisis beyond this period, then we are in for trouble.” Generally, cargo traffic to the MORE ON PAGE 2

Stick to AfCFTA deadline—business leaders urge ministers MORE ON PAGE 3

Sahara Energy COO calls for greater resilience in global energy market MORE ON PAGE 2

ECONOMIC INDICATORS *EXCHANGE RATE (INT. RATE)

USD$1 =GH¢5.6896*

EXCHANGE RATE (BANK RATE)

USD$1 =GH¢5900.*

*POLICY RATE

14.5%*

GHANA REFERENCE RATE

15.12%

OVERALL FISCAL DEFICIT

7.8%*

PROJECTED GDP GROWTH RATE PRIMARY BALANCE.

1.5% -1.1% OF GDP

AVERAGE PETROL & DIESEL PRICE:

GHc 5.13*

INTERNATIONAL MARKET BRENT CRUDE $/BARREL

26.44

NATURAL GAS $/MILLION BTUS

1.89

GOLD $/TROY OUNCE

1,700.42

CORN $/BUSHEL

329.50

COCOA $/METRIC TON

2,402

COFFEE $/POUND:

+5.70 ($108.30)

COPPER USD/T OZ.

220.15

SILVER $/TROY OUNCE:

16.39

NEWS/EDITORIAL

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MONDAY MAY 4, 2020

EDITORIAL

Strengthen port systems to secure revenue 1

Wash your hands 2

The news that the total volume of cargo handled by the country’s two seaports, Tema and Takoradi, is expected to drop by some 0.5m metric tonnes in the first quarter compared to a year ago, as the Covid-19 pandemic continues to restrict trade and wreak havoc on global supply chains, calls for instituting of strong revenue assurance measures at the two ports. According to the Ghana Chamber of Shipping, the figure represents a 15 percent fall from the 3.5m metric tonnes recorded in the first quarter of 2019.

Wear a mask Brought to you by

LIMITED Copyright @ 2019 Business24 Limited. All Rights Reserved. Editorial Team Dominic Andoh: Editor Eugene Kwabena Davis (Head of Parliamentary Business & Commodities) Benson Afful (Head of Energy & Education) Patrick Paintsil (Head of Maritime & Banking) Nii Annerquaye Abbey (Online Editor) Marketing Alexander Lartey Agyemang (Business Development Manager) Ruth Fosua Tetteh (Dept. Business Development Manager) Gifty Mensah (Marketing Manager) Irene Mottey (Sales Manager) Edna Eyram Swatson (Special Projects Manager ) Events Evelyn Kanyoke (Snr. Events Consultant) Finance/Administration Joseph Ackon Bissue (Accountant)

Generally, cargo traffic to the country’s seaports has seen continuous growth over the last decade, with throughput rising from 15.1m metric tonnes in 2014 to 21.5m metric tonnes as at 2017. There was an 8 percent increase over the 2017 figure to 23.8m metric tonnes in 2018, before it slipped to 20.8m metric tonnes in 2019. Industry players were upbeat about a promising business year in 2020, banking on the prospects of the ultra-modern and sophisticated MPS Terminal 3 that was opened last year. Director-General of the Ghana Ports and Harbours Authority (GPHA), Michael Luguje, in his

outlook for the year had stated that: “In 2020, we are looking forward to doing better because Terminal 3 is going to attract more business. We think that our ports are well geared for that—Takoradi Port is coming up as an oil and gas services hub. We are expecting extraordinary performance in every industry that works with the port and the economy of Ghana itself.” These developments call for an end to the challenges with the new UNIPASS system to secure the much-needed revenue.

First quarter cargo traffic tipped to fall by 15% (…CONTINUED FROM COVER )

Cover your cough

“One is wondering whether we will be able to make 3.5m metric tonnes of cargo traffic for this quarter as was attained last year,” CEO of the chamber Dr. Kofi Mbiah told Business24 in an exclusive interview. “We are yet to get the final figures for the quarter, but we estimate that, looking at the disruptions to the supply chain, we are likely to lose about 15 percent of our previous tonnage for same period 2019.” The chamber also predicts the impact of the coronavirus to reflect in the full year cargo traffic figure, which was a little over 20m metric tonnes in 2019.

country’s seaports has seen continuous growth over the last decade, with throughput rising from 15.1m metric tonnes in 2014 to 21.5m metric tonnes as at 2017. There was an 8 percent increase over the 2017 figure to 23.8m metric tonnes in 2018, before it slipped to 20.8m metric tonnes in 2019. Industry players were

upbeat about a promising business year in 2020, banking on the prospects of the ultra-modern and sophisticated MPS Terminal 3 that was opened last year. Director-General of the Ghana Ports and Harbours Authority (GPHA), Michael Luguje, in his outlook for the year had stated that: “In 2020, we are looking forward to doing better because Terminal 3 is going to attract more business. We

think that our ports are well geared for that—Takoradi Port is coming up as an oil and gas services hub. We are expecting extraordinary performance in every industry that works with the port and the economy of Ghana itself.” He added: “We always strive to position ourselves as the best port by offering seamless experience to persons who do business through our ports.”

Earlier projections had estimated an increase of approximately 10 percent in throughput for the first quarter of 2020, rising to around 12-15 percent by the end of 2020. The coronavirus crisis has, however, upended all such forecasts, with the Ghanaian economy’s overall external trade and economic growth set to shrink from the earlier upbeat predictions.

Sahara Energy COO calls for greater resilience in global energy market Stakeholders in the global energy market need to work more collaboratively to shore up the market’s resilience in the face of the economic and supply chain disruption caused by the COVID-19 pandemic, Andrew Laven, Chief Operating Officer of Sahara Energy Resources DMCC, Dubai, has said. Laven explored some of the key lessons from the pandemic for the energy market in an article for leading trade publication Energy Voice, under the title “Finding the new norms in the post-COVID supply chain”. Laven’s Sahara Energy Resources DMCC, Dubai, is an affiliate of energy conglomerate Sahara Group, which has operations in Africa, Asia,

Europe and the Middle East. He said: “The path to recovery is likely to be bumpy and everywhere will be moving at a different pace, so more of a wide U-shape than a quick V. Whatever the path, oil will be a critical element of the recovery. Even though there is not much we can do to stimulate demand, the sector must prepare for recovery: positioning all aspects of the value chain to supply energy to countries, communities and individuals.” According to Laven, the market needs to brace up for a shift in consumption following the disruptions caused by the pandemic. “A shift in consumption – for example more driving, less flying – will see demand for products change. Refineries may need to change the way

they operate and produce different proportions of each fuel, which may see some refineries unable to operate economically and being forced to close. Where things change, though, there are also opportunities for new energies – when demand starts to pick up, maybe the world will use it as an opportunity to take a step towards cleaner energies,” he stated. Laven argued that given experiences from previous market disruptions, he was certain that the market would “bounce back”, especially when all stakeholders work together to achieve the “greater good” for all. “The oil market is exceptionally robust and will bounce back, but it would be a mistake to miss

Andrew Laven, COO of Sahara Energy Resources DMCC, Dubai

this opportunity to learn from the current challenges and build greater resilience in our supply chains for the future. In this area, we are happy to lead by example. Resilience has always been a part of Sahara Group’s approach across the African continent, building a business that learns from the market conditions in order to adapt to and meet current requirements and changing circumstances,” he added.

MONDAY MAY 4, 2020

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Stick to AfCFTA deadline—business leaders urge ministers BY BENSON AFFUL

A number of business leaders have signed a joint letter calling for African ministers and heads of state to stick to the deadline of July 1 for the coming into force of the African Continental Free Trade Area (AfCFTA) agreement. The letter, which was copied to Business24, came ahead of the AU ministerial meeting on the 5-6th of May that will be discussing the trade response to Covid-19 and the state of the free trade agreement. The letter follows reports in international media that the AfCFTA implementation date of July 1 is likely to be postponed in the wake of the coronavirus pandemic.

The signatories said there is no legitimate reason to postpone the AfCFTA, even if they understand that a staggered approach can be used given current circumstances. Africa’s free trade pact, if successfully implemented, will give rise to the biggest regional trading bloc in the world, with a market size of 1.2 billion people and a combined GDP of US$2.5 trillion. “We understand that certain parts of the AfCFTA are sensitive. The rules of origin and tariffs need time, but we can start with the trading of essential goods. That will send a strong message to the world that we are serious about the AfCFTA and to African businesses,” said Paulo Gomes, one of the signatories to the letter who is

a former Executive Director of the World Bank and Chair of the Executive Committee of AfroChampions. The AfroChampions network has been mandated by the African Union to coordinate private sector discussions around the AfCFTA. Mr. Gomes said the ministers meeting next week have a duty to respect the current deadline. “The private sector is the biggest beneficiary of the AfCFTA, and with supply chains being disrupted globally, it is even more urgent that we have a functioning system within the continent to create continental supply chains.” In the letter, the signatories acknowledged that governments are right to ensure that the immediate response to the pandemic is

a health one. They added, however, that the looming crisis is economic, and the AfCFTA is an important tool to help stimulate investment and to create African value chains. They said there is no reason why the trade negotiations can’t be virtual, and also called for the work of the AfCFTA Secretariat, which includes the recruitment of its staff, to continue so

as to ensure the Secretariat is operational as soon as lockdowns are effectively over. The signatories are part of the AfroChampions network, which features some of the biggest names in Africa’s private sector and whose patrons include Thabo Mbeki and Olusegun Obasanjo, former Presidents of South Africa and Nigeria respectively.

Education minister says unopposed in principle to online exams BY BENSON AFFUL

The Minister of Education, Dr. Mathew Opoku Prempeh, has said he is not opposed to universities conducting their examinations online so long as they have the capacity to do so and are able to ensure the participation of all their students. For the first time in the country’s history, universities are having to devise innovative ways to provide lessons and conduct exams, as schools remain closed until further notice as part of measures to contain the spread of the novel coronavirus disease. While many universities have been organising lectures online, the decision by some to conduct end-ofsemester exams online has sparked resistance among some students, who believe there are many challenges with that mode of contact that school authorities have not addressed. Reacting to the issue in a

media interview, the minister said if the universities have the capacity to conduct exams online, the education ministry would not object to it—unless the mode of the exams would disenfranchise some students. “If any university has got all its students online to conduct its exam, who am I to say don’t conduct online exams,” he said. “I suspect if any university does the exams and realises that only a third of the students could do it, then there is nothing much they can do about it but to find another way of bringing everybody on board to be able to write the exam.” The Ghana Institute of Journalism was one of the first public universities to issue a communique containing the revised academic calendar of the school for the second semester of the 2019/2020 academic year, which indicated that online exams will be held for their students. The communique provided

Dr. Matthew Opoku Prempeh

modalities for how the exams, scheduled for May 25 to June 12, will be conducted. Some students of the institute however expressed their reservations about the decision to conduct exams online, pointing to

challenges such as the cost and reliability of internet services. Currently, it is not clear when schools across the country will be made to reopen as cases of the novel coronavirus keep going up.

The pandemic has disrupted the academic calendar of the schools, and there are fears it could delay the start of the next academic year in September.

MONDAY MAY 4, 2020

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NEWS

FBNBank supports fight against COVID-19 FBNBank Ghana Limited, a subsidiary of First Bank of Nigeria and the FirstBank Group have extended a hand of support in the fight against the spread of COVID-19. The support, which includes presentation of Personal Protective Equipment (PPE) and cash donation forms part of FBNBank Ghana’s over GH¢500,000 contribution that was made to various institutions including the 37 Military Hospital, Accra the Awutu Senya East Municipal (ASEM) Health Directorate, Kasoa and also through the Ghana Association of Bankers. Making the presentation at the 37 Military Hospital, the Managing Director of FBNBank Ghana, Victor Yaw Asante reiterated the bank’s commitment to promote the health and wellbeing of Ghanaians. He said the bank found it necessary to support every effort to stop the spread of COVID-19 in

From left to right: William A. Neequaye, Head, Commercial Banking, Victor Yaw Asante, Managing Director, Brigadier General Nii Adjah Obodai, Commanding Officer, 37 Military Hospital, Semiu Lamidi, Chief Financial Officer & Mohammed Ozamah, Chief Risk Officer

Ghana and the world. Mr. Asante emphasised the need for all to continue to observe the necessary

preventive protocols; which include wearing of face masks, regular washing of hands with soap, use of hand sanitizers and maintaining

social distancing to help contain the spread of the virus. The FBNBank Ghana

MD lauded the relentless dedication demonstrated by health professionals in dealing with COVID-19 and urged Ghanaians to avoid stigmatizing people that had been affected by the disease to avoid people keeping infections to themselves. Since the outbreak of the COVID-19 pandemic, the FirstBank Group has spent over US$2,000,000 in interventions to support the health sector, especially relating to testing, isolation, treatment and the provision of Intensive Care Unit (ICU) facilities in Nigeria and countries in which FirstBank of Nigeria Limited subsidiaries provide banking services. Receiving the items, Brigadier General Dr. Nii Adjah Obodai, Commanding Officer of the 37 Military Hospital expressed appreciation to the FBNBank Ghana Managing Director and wished the bank well.

Huawei introduces free home study “We are with you” – AGI programme for Ghanaian students tells industry players Huawei Technologies (Ghana), through its Information C o m m u n i c a t i o n Technologies (ICT) Academy, has introduced a new initiative dubbed: ‘Huawei Study at Home Programme’. The initiative is focused on equipping students with the needed technology and educational materials to enable them take Huawei’s ICT Certification Programmes online while at home during this COVID-19 pandemic period. Mr. Geoffrey Li, the Enterprise Director at Huawei Ghana in a statement said the initiative, which focuses on giving students interested in ICT the opportunity to expand their scope, would also offer a seamless training and learning experience. He said it would also certify excellent students to make them industry ready even when universities and schools are closed. “As a way to further motivate the students not be ideal but gain some certification during this period, we are offering students, who enroll on the courses free data with the top five excelling students set to be rewarded after the completion of the courses,”

he added. He said students would be trained on how to operate and use Huawei equipment through HCIA to develop talents with practical skills for the ICT industry and communities. He said all classes are held remotely online and courses are instructed by trained Ghana lecturers and some courses that will be covered during the training period include, Routing and Switching (HCIA-R&S), Cloud Computing and AI (HCIA-Cloud & AI), Security and WLAN. The Enterprise Director said all these courses were professional certification courses with passing student set to be certified. “Last month, Huawei trained over thirty lecturers and IT professionals from 10 Universities in Ghana, in routing and switching increasing its instructor base to adequately train students interested in taking

the course,” he said. He said so far, over 300 students have enrolled and taking part in the Huawei ICT Academy ‘Study At Home’ programme. He expressed Huawei’s continuous commitment to undertake several innovative technology initiatives to combat COVID-19, while ensuring a fully connected intelligent world for everyone. Professor Abeiku Blankson, the Vice President of Ghana Technology University College, speaking on the relevance of the programme to students said, while academia focuses mostly on theory, the Huawei ICT Academy offer professional certification and it’s structured to give students a feel of what actually happens on the field. “Our partnership with Huawei on this is mostly driven by our desire to give our students the opportunity to gain some necessary skills, while getting them to be marketready and the innovative ‘Huawei Study At Home’ programme will allow them to do that from the comfort of their homes during this period where schools are closed due to the COVID-19 outbreak,” he added.

The Volta, Oti and Eastern regions chapter of the Association of Ghana Industries (AGI) has assured industry players of its commitment to ‘shepherd’ them through challenges posed by COVID19. A statement signed by Mrs. Lucy Tenkorang, Vice Chairperson of the Association for the three regions, said “we are with you…and appeal to management of our various industries in the region to do all they can to put the welfare of their employees a top priority.” The “Workers Day”

statement called for unity to fight the pandemic, which threatens to collapse some businesses. It urged members to take advantage of opportunities presented by the pandemic and revitalise the region’s industrial support system by adopting local content strategies that prevented leakage of economic investment. The statement asked members to go by public health guidelines and sanitary practices as government strives to shield the nation from the impact of the Coronavirus disease.

F E AT U R E

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Banking in the next decade Four (4) digital reasons why Indigenous banks have taken only a step in the 1000-mile journey BY EBENEZER ASUMANG “The challenge for banks isn`t becoming “digital” – it`s providing value that is perceived to be in line with the cost – or better yet, providing value that consumers are comfortable paying for.” ……Ron Shevlin, Author and Director of Research at Cornerstone Advisors.

ost players in the banking sector recognize the scale of the digital transformation they are now part of. Digital disruption is happening at every level in the banking industry and everyone agrees that digital transformation is essential to stay ahead of the pack, reduce costs and ensure viability. However, in place of the hype and the froth, a sense of realism about the future of banking and how to achieve it is very welcome. Indigenous banks are fascinated about the prospects but at the same time wary of the quantum of risks and challenges associated with the transformation. Digital banking simply means the full digitization of banks and all its activities, programs and functions. It’s not just about digitizing your services and products (the front-end that customers see) but also about automating your processes (the backend) and connecting these worlds with middleware. Digital banking is about the automation of every step of the banking relationship, and it goes way beyond an online or mobile banking platform. Banks are affected by digital disruption and penetration, and they know they need to act fast to manage it. New entrants or startups are changing customer expectations and impacting revenue streams. Banks need to improve customer experience, increase operational efficiency and respond faster to industry changes if they want to succeed in a digital economy. They need to make a fundament switch in their day-to-day operations, yet stay true to their own identity; they need to handle digital in a way that suits their organization, customers, and workforce.

Digital banking doesn’t only create opportunities for improving efficiency and reducing costs and creating high-value digital services; it also leads to major challenges and risks. The risks and challenges become stumbling blocks for indigenous banks to scale up to the “real digital world situation”. Four (4) crucial reason can be attributed to reasons why the digital journey of a 1000mile has seen only a step by indigenous institutions: 1.Legacy Platforms: For most banks, legacy infrastructure is the biggest challenge and highest hurdle to digitization. Having been built up piecemeal over time, they allow banks to replicate certain parts of a given process online, but that is the limit to what they can achieve. They are the source of siloed information and siloed operations: the direct opposite of the agile, nimble digital processes banks now require. Their complexity and oldfashioned architecture are the reason for such immense maintenance spends. Legacy platforms reach into almost every aspect of the businesses, and replacing

them is not always the right thing to do. Re-engineering core systems and processes to be built upon a digital core foundation can be a smart solution. 2.Finding the right people to transform: Digital transformation is a complex process, and you need specialists to become a digital bank. Finding the right people, who can guide you through this transformation, is a real challenge for many banks. Digital transformations are more about people than machines. Having the right individuals in place to lead the transition is a matter of honestly assessing your own capabilities and shortcomings. As technology continues to shape the way business gets done, placing your trust in people first will be your best strategy for success. 3.Winning or retaining customers` trust: Trust is the essential prerequisite for widespread adoption of digital banking by customers; they must be sure that their identity will not be stolen, that fraudulent payments will not be made

from their accounts, and that electronically-signed bank contracts retain the same legal value and validity as hard-copy contracts. Just like legacy platforms, customers of a bank become fixated with traditional services provided by brick and mortar. This therefore makes it challenging to entirely change that with technology. In the event of retaining their clientele, banks will therefore tread cautiously on the digital transformation journey. They want to build a 100% trust for customers. 4.Meeting regulatory requirements: Banks must comply with increasingly stringent legislation associated with digital transformation. These requirements are instituted internationally and therefore pose challenges to indigenous banks who are already reeling under the tough internal regulations. They must also protect themselves from cyberattacks, etc., to fulfill risk management obligations. The challenge for banks to protect themselves against cyber-attacks and digital fraud is also a risk. Threats

have become extremely advanced, and the attackers are smart enough to identify the kind of precautions that the banks can take, and they design their attacks accordingly. It’s something banks need to be well aware of. You need customers’ data to improve their customer experience, but it can also lead to reputational damage as customers may feel that you have too much data. Privacy becomes increasingly important, so trust is key. Notes: https://www.crnrstone.com/ our-team/ron-shevlin/ https://www.fivedegrees. com/digital-banking/digital-banking-transformation

Ebenezer ASUMANG (CGIA) worked extensively in mainstream banking and NBFIs. He is a Google Certified Digital Marketer, an Author and a Chartered member of the CGIA Institute, USA. www.ebenezerasumang.com/eben_ asumang@yahoo.com/0242339145

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The digital transformation journey with Edge Computing, 5G and SD-WAN KWADWO AKOMEA-AGYIN

o support 5G (fifth generation of wireless communications technologies), experts and analysts suggest that the structure of the data center needs to change; including the existing functions of routers and switches, whiles technologies like NFV (Network function virtualization) and SDN (Software-defined networking) must be introduced on a larger scale - pointing strongly to the adoption of edge computing. Gartner predicts that edge computing will account for 75% of enterprise-generated data by 2025 from 10% in 2018 [1]. Ericsson predicts that 25% of all 5G use cases will be enabled by Edge computing [2]. What is at the Edge of Edge computing The number of applications expected to run on 5G is astonishing, as more and more 5G business cases are being explored and tested. As with most 5G use cases, huge volumes of data are expected to be processed at the edge for efficiency and cost savings. For instance, a Telco, based on analytics, may provide customized content based on the location of university campuses, shopping malls, offices and homes. Home locations may desire capacity intensive content like Netflix, whereas office locations may require less-intensive services like email, news and social media content. Uber or Tesla may have their own distributed edge data centers to track their fleet of cars or to support autonomous driving. As we move towards this highly geographically distributed mini data center ecosystem, where computing is done closer to the user/data source (aka Edge Computing), a few requirements come to mind. 1. Collocation at the Edge: The concept of collocation in Edge computing is still relatively greenfield just as is Edge computing. It means resource sharing down to the virtual machine level or hardware level-server/ storage or cabinet/pole/ container sharing. Backing this with regulation will ensure a well-controlled,

nuisance-free ecosystem. 2. Connectivity for the Edge: 5G connectivity promises to offer Edge data centers with the needed low latency, high throughput and high-speed connections to the central location (core backbone) and to the clients (last mile). For instance, a vehicle tracking application that could only collect data from 100 sensors (100 cars) every 30 seconds, can now collect real-time data from 1000 even 10,000 sensors every second. 3.Power for the Edge: Edge data centers are projected to account for 102GW of power by 2028 [3]-a huge figure that poses a lot of concern for the success of Edge computing and 5G. A number of solutions come to mind: a. With cooling contributing about 38% to the total power consumption of a data center [4], energy efficient mini data centers that use technologies like Free Cooling may be deployed to save energy. b. Explore more efficient server/compute allocation strategies that ensures that not all servers are running at the same time-compute optimization. c. Collocation of resources/ applications must be encouraged to lower power consumption. 4. Management for the Edge: Think about the effort and cost in maintaining a single data center today.

Now multiply that by 100, maybe 1000, even perhaps 10,000 geographically dispersed mini data centers. Regular maintenance means frequent trips to 1000 mini data centers. This brings to light the need to automate maintenance at the Edge which promises to drastically reduce human intervention that would ultimately trickle down to actual cost savings. Adding self-diagnostic and self-healing capabilities into the fabric of edge data centers will drastically reduce the associated costs with maintenance and management. Ensuring security for the Edge I am almost certain that 99.9% of service providers will consider physical security (high level surveillance, anti-tampering, alarming, etc.) of their mini data centers as top priority. How about cybersecurity? The promise of 10 times faster data connectivity with 10 times lower latencies over the internet, makes cybersecurity a critical factor in the success of 5G and edge computing. The worldwide adoption of 5G technology, which will be predominantly wireless broadband will mean that corporate networks that will rely on this technology need to adopt a security technology that is not MPLS (Multiprotocol Label

Switching) as we know it. This is where SD-WAN (SoftwareDefined Wide-Area Network) comes in. Think of SD-WAN as connecting your very important “gold” resources - this time not through a private connection like MPLS, but through the public internet, and still providing high level security for those connections. Deploying SD-WAN over 5G connections for enterprises is an inevitable reality. Orange and Nokia have already demonstrated this capability [5]. Concluding remarks When you think of the 5G/ data center evolution, think Edge computing and how it can enable your business propositions. And whiles discussing those business propositions, think about security. Why have costly private WAN connections for thousands and millions of Edge data centers whiles 5G offers better throughput speeds and latency. The only problem is that it will be over the internet. This is however solved with SDWAN technology which is already here. Think of Edge computing as the enabler for highly secured, highly resilient, and low latency business cases and explore the possibilities that these technologies (Edge, 5G and SD-WAN, together with Artificial Intelligence and

other concepts) bring in unison to create the perfect business model for today’s marketplace. The possibilities are enormous; however commercial viability of the business cases must be quickly validated to understand the ecosystem better. With Telcos and hyperscale cloud providers leading the charge, we can harness the full potential of the various propositions in this promising era of 5G, Edge computing and SDWAN. References [1] Van der Meulen, R. (2018, October 3). What Edge Computing Means for Infrastructure and Operations Leaders. https://www.gartner.com/ smarterwithgartner/whatedge-computing-meansfor-infrastructure-andoperations-leaders/ [2] Beyond edge computing with distributed cloud. (2020, April 6). https://www. ericsson.com/en/digitalservices/trending/edgecomputing

Kwadwo Akomea-Agyin; | Digital Solutions Expert & Business Analyst | Member, Institute of ICT Professionals, Ghana. For comments, contact kojo.e@live.com LinkedIn: https://www.linkedin.com/ in/kwadwo-akomea-agyin-pmpmres-1a866227

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A Pledge for Africa BY ABIY AHMED

he world will not be free of the COVID-19 pandemic until all countries are free of the coronavirus that causes it. This simple fact underscores the urgent need for the Global Health Pledging Conference to be held on May 4. Only by acting now to support developing countries’ ability to combat the disease can the world avoid a second wave of the virus this autumn. African Union leaders welcome the offers that are now coming in of test kits, ventilators, and personal protective equipment (PPE) from the developed world. But if we are to turn the tide against COVID-19, the world’s richest countries must hear and respond to the developing world’s pleas for a comprehensive strategy to overcome the dual publichealth and economic crisis we face. Up to now, there has been a huge disconnect between the rhetoric of richcountry leaders – that this is an existential, once-in-acentury global crisis – and the

support for the world’s poor and developing countries than they seem willing to contemplate. Indeed, until last week, African countries were spending more on debt payments than on health care. In 34 of Sub-Saharan Africa’s 45 countries, annual per capita health spending is below $200 – and barely reaches $50 in many of these countries. Such low levels of spending make it impossible to fund acute-care hospital beds, ventilators, and the drugs needed to confront diseases like COVID-19. Paying for doctors, nurses, X-ray technicians, and other health professionals, together with their equipment, can seem almost like a luxury. Worse yet, many of the measures available to richer economies as they work to mitigate the disease – lockdowns, stay-at-home orders, and even frequent handwashing – cannot easily be implemented in much of the developing world. In often-overcrowded cities, social distancing is all but

impossible, and there are not enough resources to provide adequate sanitation and, in many cases, the running water that people need. So, what must be done? For starters, Africa’s governments need an immediate flow of funds to enable investment in health care and social safety nets. Here, the most effective starting point is debt relief. So far, relief from bilateral debt is available for the 173 members of the International Development Association (the World Bank’s concessional lending arm for the poorest developing countries) only until December. To meet our immediate needs and to plan ahead, we need an agreement for debt relief not just for this year but for next year as well. Beyond debt relief, the grant and lending ceilings of the International Monetary Fund, the World Bank, and other multilateral development banks will need to be raised substantially. And an issuance of international money – the IMF’s Special

Drawing Rights – to raise $1.5 trillion must take place soon. We in Africa are asking for this support not only for ourselves, though our needs in this crisis are perhaps greater than they have ever been. We in Africa seek the help of the developed countries (including China) so that we can do our best to protect the entire world from a return of this scourge. But time is short. Africa may be among the last places on Earth to be struck by COVID-19, but the disease remains as potent and deadly as ever. If we are to eliminate the threat, every country needs to do what it can to accelerate the search for a vaccine and ensure that it is available everywhere. To that end, the Coalition for Epidemic Preparedness Innovations needs sufficient funding – $3 billion immediately, with more in 2021 and beyond – not only to develop and produce a vaccine for those who can afford it, but also to be in a position to distribute it equitably around the world. And Gavi, the Vaccine

Alliance needs the funds to ensure that this happens. Likewise, a coordinated global effort could greatly accelerate production of the PPE, testing kits, and ventilators that are needed in every country and on every continent, and ensure that these life-and-death supplies are fairly distributed, not hoarded by the rich and few. Countries that have few coronavirus cases and are beyond the pandemic’s peak should be willing to help poorer countries by sending lifesaving equipment to them. And, looking ahead, we should be building up stocks of these supplies for emergencies, so that we can help each other the next time we need help the most. All of these issues are on the agenda for the Global Health Pledging event on May 4. We ask all countries in a position to do so to participate, to listen and advise, and, most important, to give. Abiy Ahmed, Prime Minister of Ethiopia, was awarded the Nobel Peace Prize in 2019. © Project Syndicate 1995–2020

MONDAY MAY 4, 2020

OPINION

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MONDAY MAY 4, 2020

Protectionism is no cure for pandemics BY AMINA MOHAMED

frica is no stranger to epidemics and public-health crises. Ebola is estimated to have killed more than 11,000 people in West Africa in 2014-16, and more recently claimed over 2,000 lives in the eastern Democratic Republic of the Congo. Because of their fragile health systems, African countries were able to control this deadly disease only with the support of other governments, the World Health Organization, and non-governmental organizations such as Médecins Sans Frontières. Africa has learned the hard way that international cooperation is key to saving lives and extinguishing epidemics. But the mixed global response to the current COVID-19 pandemic suggests that the world is in danger of forgetting this lesson. Perhaps understandably, governments have focused on their domestic situation and their citizens’ needs. Many countries reacted to the outbreak by closing their borders and attempting to solve their own health crises first before helping others. But such an approach will have unintended consequences. And too many governments have paid scant attention to how their preventive measures may negatively affect poor and vulnerable countries in particular. For example, 60 governments have imposed export restrictions on medical equipment such as ventilators and personal protective equipment – more than half since the beginning of March. Some countries are limiting exports of essential drugs for treating COVID-19 symptoms. And a growing number are banning exports of food products, including rice, wheat, and eggs, in order to guarantee their own countries’ food security. True, the World Trade Organization allows its members to impose trade restrictions such as export bans in certain limited cases. But the proliferation of such measures could negatively affect the food security of countries that depend on international trade for the bulk of their needs – including many of Africa’s least-developed economies.

COVID-19 is not only hitting trade, of course. The accelerating pandemic is also exacting a shocking human and economic toll, first and foremost in terms of lost lives, but also as a result of bankruptcies, job losses, and mental-health problems. Faced with this, governments must not be frightened into short-term protectionist fixes. And that applies to African countries, too. Crucially, policymakers must not lose sight of the opportunities presented by the African Continental Free Trade Area, which is expected to become operational later this year. African governments have rightly invested a lot of hope in the AfCFTA. By removing tariffs and other trade barriers, the agreement can foster significant growth in trade, investment, and employment throughout the continent. Such growth is urgently needed, because intra-African exports accounted for less than

17% of the continent’s total exports in 2017 (the comparable figures for Europe and Asia were 68% and 59%, respectively). That means African economies’ interconnectedness with the rest of the world is vital to their survival during the pandemic, and to their eventual recovery and growth. Africa therefore should be at the forefront of those calling on G20 members and other governments to abide by the letter and spirit of their WTO commitments and eschew protectionism. Unnecessary export restrictions on food, medical equipment, and essential drugs can have far-reaching consequences for the multilateral trading system and the global economy. Such measures will not only impede progress in managing the current crisis, but will also compromise African countries’ longerterm efforts to tackle poverty and improve living

standards. Now more than ever, therefore, WTO members should give full effect to the WTO Doha Declaration on the TRIPS Agreement and Public Health. This declaration recognizes the fragility of African countries’ health systems and promotes their access to essential medicines to deal with public-health crises, including HIV/AIDS, tuberculosis, malaria, and other epidemics such as COVID-19. At the same time, African countries, for their part, should remove tariffs and simplify customs clearance procedures for imports of essential drugs and equipment. And when confronting health crises, they must make full use of information and communication technologies wherever possible, facilitate the exchange of African health experts, and involve the private sector in the same manner as during the Ebola epidemic. By

working collaboratively with existing African economic communities and political bodies, governments will ameliorate the impact of COVID-19 and future publichealth crises. In a matter of a few weeks, COVID-19 has flattened the world, making everyone vulnerable and fearful, but also reminding us how interdependent we all are. Instead of wasting this crisis, the international community must now seize the opportunity to strengthen global cooperation and facilitate trade. That means rejecting protectionism, which would only prolong the pandemic and deepen the already-severe global recession.

Amina Mohamed, a former chairman of the World Trade Organization General Council and the 10th Ministerial Conference of the WTO, was Minister of Foreign Affairs and International Trade and currently serves as Cabinet Secretary for Sports, Culture, and Heritage of Kenya. © Project Syndicate 1995–2020

MONDAY MAY 4, 2020

AFRICAN ECONOMY

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MONDAY MAY 4, 2020

IIA extends COVID-19 SME survival programme to Ghanaian SMEs Invest in Africa (IIA), a private sector-led initiative focused on growing local businesses in Sub-Saharan Africa, has taken the decision to make its membershipbased services offering COVID-19 support free to any Small or Medium-sized business in Africa. The new ‘COVID-19 SME Survival Toolkit’ includes webinars, practical guides, solutions and recommendations to help African SMEs get through the many challenges the pandemic represents. Established in 2012, IIA operates locally in five countries across the continent (Ghana, Kenya, Senegal, Zambia, and Mauritania), acting as a catalyst for SME growth and competitiveness by providing training, improving access to finance and mitigating supply chain risks. A statement issued by IIA said the latest COVID-19 survival programme, focused on supporting Small and Medium Enterprises (SMEs) through the current period of economic uncertainty. It said the service was available to all SMEs across Africa via the Invest in Africa

website. Mr William Pollen, IIA’s CEO commenting on the initiative said “Because of the vast majority of businesses in Sub-Saharan Africa are SMEs, we also provide nearly all employment opportunities and ensuring their survival is critical to longer term economic growth prospects.” He said what the programme aim to achieve was not only to enhance SMEs’ chances of surviving the crisis, but also to help them emerge stronger and more resilient. “We are an SME ourselves and as an organisation dedicated to supporting small, local African businesses the decision to roll out a specific COVID-19 response initiative, for free, was made immediately,” he added. The CEO said whilst survival was the new theme of 2020, SMEs were in danger of being forgotten about, that was why IIA wants to ensure they do not get left behind by arming them with practical support, built over years of experience, that could be implemented now, focusing on business-critical issues like cash flow, cost

reduction, procurement and HR. He said IIA works with an extensive network of partner organisations, including the UK Department for International Trade in Africa to effectively support and accelerate SME business growth. Mr Pollen said the latest initiative launched by IIA as part of the COVID-19 programme was a series of virtual training sessions in partnership with these organisations, offering courses such as ‘The 100-Day COVID-19 Business Recovery Plan’ in partnership with EY and ‘Formulating Solutions to Support Female-led SMEs’ in partnership with International Financial Corporation. Madam Emma Wade-Smith, the Trade Commissioner for Africa at the UK Department for International Trade said: “Having restated the UK’s commitment to being Africa’s investment partner of choice at the UK-Africa Investment Summit in January, we want to reiterate our support to our African partners during this unprecedented economic challenge.” She said SMEs were critical to the resilience of

local economies, so “we fully support the efforts of Invest in Africa to assist them and the initiative to offer free access to this useful toolkit, especially as trade and investment will be so essential to mitigating the economic impact of COVID-19.” Mr. David Ofosu-Dorte, Executive Chairman, AB & David Africa, one of IIA’s partners said: “In Africa where economies are predominantly SMEs led, the socio- economic impact of COVID-19 will be massive.” He said forward-looking initiatives focused on helping SMEs survive the storm and position them to be more resilient was exactly what IIA was providing to help local businesses to prepare to take advantage of AfCFTA opportunities. He said one of the obvious lessons of COVID-19 was that it was important not to be over-dependent on one region for the business supply. “With a Pan-African network of 5000 suppliers across the continent, IIA is well positioned to contribute to building long-term capacity and competitiveness of SMEs

in the supply chain and this programme will really make a difference to how SMEs ride the storm of the COVID-19 pandemic,” he added. He said with unprecedented financial stimulus packages being put forward by governments and Central Banks to support SMEs, another key part of IIA’s COVID-19 programme was highlighting to SMEs what support was already available and how to access this funding. Mr Godwin Locher, Founder of Ghanaian-based SME Lightingale Limited said, “I must say this is a great initiative by IIA in support of SMEs in these difficult global times.” He said one of the biggest challenges has been knowing, how to access the government SME stimulus packages to support their ongoing projects and supplement their working capital. “The effort IIA is making to educate businesses about government programmes for the SME sector is greatly appreciated,” he added.

IMF approves US$91m loan to Malawi for COVID-19 trade balance woes The International Monetary Fund (IMF) has approved a $91 million loan for Malawi to help fund a balance of payments deficit exacerbated by the COVID-19 pandemic, the Fund said in a statement. “The COVID-19 pandemic is having a severe impact on Malawi, creating an urgent balance of payments need,” Tao Zhang, deputy manager of the IMF, said in the statement. “The authorities have been proactive in mitigating the impact of the pandemic, including through increased spending on health care and social assistance ... and ensuring food security through purchase and storage of agricultural harvests,” he added. The low-income southeast African country, which so far has reported 37 coronavirus cases and three deaths, was already suffering from

economic stagnation linked to drought, leading to increasing unrest over falling living standards. Malawi’s main export is tobacco, which makes up about half of export earnings, alongside other crops such as tea and sugar. The World Bank said last month it had approved a $37 million funding package to help Malawi respond to the coronavirus.Reuters

MONDAY MAY 4, 2020

AV I AT I O N

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MONDAY MAY 4, 2020

South African trade unions seek court action over job cuts at SAA Two South African trade unions are seeking court action to try to block layoffs at the embattled state-owned South African Airways (SAA), court papers seen by Reuters on Friday showed. SAA entered a form of bankruptcy protection in December and rescue specialists Les Matuson and Siviwe Dongwana proposed severance packages for all of SAA’s roughly 5,000-strong workforce last month after the government said it would not provide any more funds. They gave trade unions until the end of business on Friday to reach an agreement on staff severances. Otherwise, the specialists “will have to make an urgent application for an order discontinuing the business rescue proceedings and placing SAA into liquidation,” they said on April 23. But in court papers lodged

on Thursday, the National Union of Metalworkers of South Africa (NUMSA) and the South African Cabin Crew Association (SACCA) have asked the Labour court to order the rescue team to withdraw the proposed layoffs or suspend talks on job cuts until they have seen a business rescue plan. The unions want a hearing on May 7. The rescue specialists, who declined to comment on Friday, have been given by

creditors of SAA until May 29 to present the airline’s business rescue plan. The public enterprises ministry reiterated in a statement on Friday that it wanted to see SAA restructured into a new airline. “Airlines around the world are failing, but with the correct vision, leadership, business and operating model, funding and implementation the new national carrier will be well

positioned to take to the skies again,” the ministry read. The ministry made no mention of NUMSA and SACCA’s court case or the talks between unions and the SAA business rescue team over severance packages. A ministry spokesman was not available to elaborate on the statement. SAA has not been profitable since 2011 and has received more than 20 billion rand ($1.07 billion) in bailouts in the past three years, a drain on public resources at a time of weak economic growth. The fortunes of SAA and that of its peers have deteriorated further with the COVID-19 pandemic which has forced airlines to suspend all commercial flights following a government imposed nationwide lockdown. South African airline Comair said on Thursday

that it was planning to cut jobs and was in talks with U.S. planemaker Boeing on the cancellation of 737 MAX 8 orders. Comair, which operates the British Airways franchise in South Africa and owns budget airline Kulula, said it had also started negotiations with lenders to secure bridging finance. The possibility of raising additional equity capital was also being investigated, the company said. “Although, the company was experiencing financial headwinds prior to the COVID-19 outbreak, the fiveweek lockdown has caused the situation to rapidly deteriorate,” Comair said in a statement, adding it was not anticipated that it would resume operations before October or November 2020.

Bombardier announces gradual resumption of its manufacturing operations in Canada Bombardier has begun the process of recalling most of its Canadian based employees that were placed on furlough following government mandates enacted to slow the spread of COVID-19. Suspended manufacturing and service activities will gradually resume as of May 11. Nearly 11,000 employees are expected to be back to work within the next few weeks across our Aviation and Transportation segments and Bombardier’s Corporate Office. Returnto-work schedules will vary by site and be subject to new procedures to ensure employee health and safety. Site and function leaders will be communicating specific plans and dates directly to employees. All recalled employees whose physical presence is not required at Bombardier’s production or service sites will be asked to work from home until further notice. “As we resume operations across many of our sites, the health and safety of our employees, our customers and the general population will continue to be our top priority. I deeply believe that by continuing to work in

close collaboration with the employee representatives and public health authorities in all the countries where we operate, Bombardier will establish itself as an example of a dynamic and responsible industrial leader in the global recovery,” said Éric Martel, President and Chief Executive Officer, Bombardier Inc. Bombardier will utilize the Canada Emergency Wage Subsidy (CEWS) program for the benefit of eligible employees in Canada. This application has the full support of unions representing Canada-based Bombardier employees. “Our industries are among the most affected by the unprecedented COVID-19 pandemic. And, I want to thank the federal government for putting this bold initiative in place to support Canadian workers

and companies. I also want to thank the union leaders for their collaboration and support during these difficult times. Above all, I want to thank our employees and their families for their patience, understanding and dedication as we take the necessary actions to navigate through this global crisis and protect our business for the long-term,” added Mr. Martel IATA Appeals to Canadian Government for Immediate Relief for Airlines in Face of COVID-19 Crisis. The International Air Transport Association (IATA) called on the Canadian government to provide urgent financial relief to airlines as they struggle to survive the devastating impact of the COVID-19 crisis. IATA estimates that revenues generated by airlines in the

Canadian market will fall by C$14.6 billion (43.2%). That puts at risk nearly 250,000 Canadian jobs and C$25.4 billion of Canada’s GDP, which is generated by aviation directly as well as by aviation-related tourism. “Airlines are facing their darkest hour. Passenger traffic has virtually stopped, and cash flows are almost non-existent. The consequences for the Canadian economy are severe. Government support is needed now to ensure that Canada has a viable airline industry to lead the economic recovery,” said Peter Cerdá, IATA’s Regional Vice President for the Americas. Government support is urgently required to ensure the liquidity which will allow airlines to survive the coming months and thus protect the jobs generated by the air transport sector. ‘’Airlines have taken emergency measures to preserve cash. But airlines are among the first and hardest hit. Globally, the industry could suffer a liquidity crisis of up to C$84.7 billion in the second quarter as demand plummets by

80% or more,’’ said Cerdá. Among governments that already have stepped up to help their country’s airlines: The United States provided US$61 billion in relief to the aviation sector; France announced a financial aid package valued at EUR7 billion; The Republic of Korea has promised financial support for local Full Service Carriers worth a total of KRW2.29 trillion (US$1.86 billion). Air transport in Canada contributes C$51.4 billion to the country’s GDP and supports some 633,000 jobs (direct and indirect). Spending by foreign tourists supports another C$16.7 billion of GDP, making a total a contribution of C$68.1 billion. In total, 3.2% of the country’s GDP is sustained by the inputs of the air transport sector and foreign tourists arriving by air. “When the COVID-19 virus is brought under control, global economic activity will once again re-start and a viable aviation sector will be critical for the recovery. In a country as vast as Canada it is a lifeline upon which people and businesses depend,” Cerdá said.

MONDAY MAY 4, 2020

MONDAY

MAY 4, 2020 THEBUSINESS24ONLINE.NET

Petra announces GHS100,000.00 COVID-19 Relief Fund As scientists and researchers work around the clock in Ghana and globally to develop an effective vaccine to contain the COVID-19 pandemic, Petra Trust Company Limited, the leading corporate trustee authorised by the National Pensions Regulatory Authority (NPRA) to provide corporate trustee services, including scheme administration services to individuals and organisations in Ghana has set up a COVID-19 Relief Fund with an initial commitment of GHS100,000.00 to offer some financial respite to customers who may be impacted by the novel coronavirus (COVID-19) and may either be hospitalised or die from the infection. The relief fund is accessible to customers of Petra or the beneficiaries of deceased customers who are members of the Petra Advantage Pension Scheme, Petra Opportunity Pensions Scheme (Including Savings Booster), Evergreen

Pension Scheme, Petra Securities Limited and Petra administered schemes/ funds. Being the manager of the pensions of thousands of employees from leading multinational organisations, government agencies, as well as top private sector organisations, the leadership of Petra, is keen to cushion customers who might be infected by the coronavirus while giving a welfare package to families of customers who may pass on because of COVID-19. This support is at no cost to customers as their fund/investment remains untouched. Giving support to those hospitalised because of COVID-19 as well as welfare package for families of departed customers are part of Petra’s corporate social responsibility as a humane and forwardthinking institution. It’s done to lighten the economic burden of its stakeholders. To access the Fund, a customer is be required to

complete the relevant benefit application form and attach any valid national ID with supporting document(s) and send a scanned copy to care@ petratrust.com. Whiles the relief covers only members of Petra administered funds/ schemes, beneficiaries can apply on behalf of an eligible member who is deceased. When an eligible member is tested positive and hospitalised, the COVID-19 Customer Relief Fund pays

a maximum of GHS80.00 per night for the period of hospitalisation up to 14 days. Should death occur as a result of the disease, an eligible member is entitled to GHS1,000.00, paid according to the member’s beneficiary nomination as provided to Petra. Customers of Petra are encouraged to update their contact information with the company to ensure they receive updates on

the Fund and their funds in general. Persons who are unsure of their customer status can dial *447*70#, WhatsApp 0505410244, or email customerservice@ petratrust.com to submit their contact information for verification. Petra continues to deliver exceptional customer experience, unrivaled investment performance, and operational excellence to its clients and customers.