Business24 Newspaper (April 27-2020)

EDITION B24 | 35

MONDAY APRIL 27, 2020

THEBUSINESS24ONLINE.NET

Pain for pensioners over BoG’s dividend directive Wrangle over new customs system festers MORE ON PAGE 3

The central bank’s directive will affect the Trust’s inflows and impact future increases in pensions by an entity which already has a number of low-yielding and non-performing investments on its books

BY DOMINICK ANDOH

Pensioners will be hit hard by the central bank’s directive for nonpayment of dividends by banks to their shareholders for the 2019 and 2020 financial years due to the impact of the COVID-19 pandemic.

By this directive, the Social Security and National Insurance Trust (SSNIT)— the state pensions administrator— private pension funds, mutual funds, and unit trusts are all expected to lose valuable investment income from

their bank holdings, a situation that ultimately affects pensioners’ income.

SSNIT, which has 216,000 pensioners on its payroll, announced in January an aggregate indexation rate for pensions of 11% for the current financial year, and a 19.1 percent increase in the minimum pension of existing pensioners, raising their monthly pension to GH¢357.18.

It also declared a minimum pension of GH¢300 for new pensioners.

While these commitments will not be altered, the central bank’s directive will

affect the Trust’s inflows and impact future increases in pensions by an entity which already has a number of low-yielding and non-performing investments on its books.

Pensioners will be affected also through the loss of investment income by pension fund managers in the second and third tiers of the pensions industry.

Writing on the impact of the central bank’s directive in today’s Business24 edition, Sam Bediako-Asante, a chartered MORE ON PAGE 2

The Netherlands celebrates King’s Day

AGI agric chair sees silver lining in pandemic crisis MORE ON PAGE 3

ECONOMIC INDICATORS *EXCHANGE RATE (INT. RATE) EXCHANGE RATE (BANK RATE)

USD$1 =GH¢5.6896* USD$1 =GH¢5.52.*

*POLICY RATE

14.5%*

GHANA REFERENCE RATE

15.12%

OVERALL FISCAL DEFICIT

6.6 % of GDP

PROJECTED GDP GROWTH RATE

1.5%

PRIMARY BALANCE.

MORE ON PAGE 13

-1.1% OF GDP

AVERAGE PETROL & DIESEL PRICE:

GHc 5.13*

INTERNATIONAL MARKET BRENT CRUDE $/BARREL

Ghana-SA relations will continue to get better -Ghana-SA Chamber MORE ON PAGE 22

21.54

NATURAL GAS $/MILLION BTUS

1.72

GOLD $/TROY OUNCE

1,721.50

CORN $/BUSHEL

329.50

COCOA $/METRIC TON

2,323

COFFEE $/POUND:

+5.70 ($108.30)

COPPER USD/T OZ.

220.15

SILVER $/TROY OUNCE:

Copyright @ 2019 Business24 Limited.

All Rights Reserved.

Tel: +233 030 296 5297 editor@thebusiness24online.net

16.39

2

| THEBUSINESS24ONLINE.NET

MONDAY APRIL 27, 2020

NEWS/EDITORIAL

Editorial: Time to boost local production 1

Wash your hands 2

Business24 backs the call by the Association of Ghana Industries (AGI) that it is time for government to aggressively champion the patronage and consumption of locally-produced goods to strengthen the capacity of home-made industries, which require such support to improve on their competitiveness.

Logistical support, local agricultural inputs, and a market that protects and encourages farmers to produce more to meet

growing local demand.

Indeed the COVID-19 pandemic has presented some agribusinesses opportunities that need to be leveraged.

Fatima Alimohamed, chair of the agribusiness sector of the Association of Ghana Industries (AGI), industries notes that: “We have to now leverage what each country on the continent can do and make a cohesive continental plan. Our priority is now first to make Africa secure, and then others. Exporting raw materials needs to be a matter of the past.

Replacing what we are importing

with that which can be produced locally is key.”

“Belgium produces the world’s most expensive chocolate, and they have the world’s best chocolate crafters—but guess what, they don’t have a single cocoa tree.

We and Ivory Coast are two of the world’s largest players and suppliers of the raw material, yet we can’t make a huge profit on it!

The narrative must change and the time is now. The scales must tip as Africa is at an advantage for being the world’s food basket, yet our people die looking for a meal

a day.”

Meanwhile, the AGI has applauded government for engaging local manufacturers to produce GH¢3.6m worth of face masks, in addition to announcing GH¢600m to provide soft loans to SMEs and extending due dates for filing taxes.

AGI leaders have said they look forward to further engaging with government on the modalities for effective implementation of these interventions.

Pain for pensioners over BoG’s dividend directive Cover your cough 3

Wear a Mask

global investment analyst, said: “SSNIT, in particular, will be heavily negatively impacted since a major part of its investment income or returns on its investment portfolio come from these banks— both listed and unlisted— thereby affecting future incomes and payments to prospective and existing pensioners.”

SSNIT is a significant shareholder in the banking industry, with stakes in Ecobank and GCB Bank— the two biggest lenders— as well as Standard Chartered, CAL Bank, Societe Generale, Fidelity,

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)

Universal Merchant Bank, and Prudential Bank.

Mr. Bediako-Asante, who is also the CEO of Sambed Consult, a business and investment advisory firm, said it is imperative to note that “SSNIT, in particular, already has problems with its investment portfolio because of its investment holdings in some non-performing companies such as the abattoirs, Aluworks Ltd., PBC Ltd., Cocoa Processing Company, and some hotels, among others.”

Central bank’s directive to safeguard financial sector The Bank of Ghana, in a statement issued on April

20, noted that the dividend directive is designed to maintain the integrity of the financial sector amid the COVID-19 crisis and enable banks assist borrowers get through the crisis.

Since the coronavirus outbreak, the bank has intervened to mitigate the economic fallout, with a reduction in the monetary policy rate from 16 percent to 14.5 percent announced in March. The central bank also lowered reserve and capital requirements and reduced mobile money transaction charges, in addition to relaxing rules for classifying non-performing loans by

banks and other regulated institutions.

The latest dividend directive will affect ordinary shareholders of banks as well as investors in money market funds which hold bank stocks in their portfolios.

A number of banks had already declared dividends to be paid to shareholders for the 2019 financial year, but these payments will have to be suspended or cancelled in the wake of the directive.

Email: Editor@ thebusiness24online.net, kofi.pra@gmail.com.

WhatsApp: 0243376878

Vivo Energy Donates to the National COVID Case Management Team Vivo Energy Ghana, the Shell licensee, has once again demonstrated its commitment to the fight against the COVID-19 pandemic by donating over six thousand items of Personal Protective Equipment (PPE) to the National COVID Case Management Team.

The donation forms part of the company’s comprehensive programme on COVID-19 prevention to complement the government’s efforts at containing the virus and providing protection for frontline workers, especially those in the health sector.

The PPE includes 4000 examination and surgical gloves, 1000 N95

respirators, 1000 goggles and 500 coveralls.

Presenting the items at the Ga East District Municipal Hospital, the Managing Director of Vivo Energy Ghana, Mr. Ben Hassan Ouattara, commended the hard work and selfless sacrifices of the COVID-19 Management Team and the frontline workers for proactively working to contain the pandemic.

“In line with our vision of becoming Ghana’s most respected energy business, we have also been at the forefront of supporting the government’s efforts in fighting COVID-19 through our community investment initiatives. We funded an e-learning application for students at home and donated hand sanitizers and liquid

soaps to some major bus terminals and retail stations”, he said.

Mr. Ouattara added that the company, together with its business partners, has launched a Retailer Sustainability Programme to facilitate the decentralisation of its COVID-19 prevention support in various communities.

He assured the public that in line with the company’s Health, Safety, Security and Environment (HSSE) intervention processes, it has equipped its Shell service stations with hand sanitizers and other cleaning solutions as a precautionary measure.

Customer Service Champions have also been encouraged to wash their hands regularly and sanitize them as often as

possible when transacting business on the Point of Sale devices.

The company has also introduced other electronic payment options like mobile money at some of its service stations to reduce the handling of cash.

Commenting on the number of cases, Dr. Samba said the Ga East Municipal Hospital has so far provided medical care for over 160 patients, discharged about 115, and hopeful that the support will further ensure an increase in the number of recoveries.

He advised everyone to observe the safety protocols.

NEWS

THEBUSINESS24ONLINE.NET

MONDAY APRIL 27, 2020

3

Wrangle over new customs system festers • •

Gov’t provides assurances But IMANI says GH¢10bn revenue at risk

BY DOMINICK ANDOH

Policy think-thank IMANI Africa has estimated that the country will realise GH¢10bn in tax revenue from the country’s sea ports, but this revenue can only be assured if current vendors GCNet and WestBlue are made to operate their existing customs management system for the “remainder of the year” while challenges with the new UNI-PASS system are fixed.

The outbreak of the coronavirus (COVID-19) pandemic has wiped out a large share of government’s revenue projection for this year, derailed macroeconomic targets, and led to the suspension of various planned programmes and projects.

Finance Minister Ken Ofori-Atta estimates that government has lost more than US$1bn in revenue since the outbreak.

IMANI Africa, in a petition submitted to the President last week, noted that despite Ghana securing

Founding President and CEO, Franklin Cudjoe has urged government to temporarily suspend operations of UNI-PASS and allow GCNET and West Blue to operate for the remainder of the year in order to be assured of GH¢10bn port revenue.

a debt standstill from international lenders and a US$1 billion emergency loan from the International Monetary Fund (IMF), the impact of the pandemic will be far-reaching, making it imperative to secure “assured” sources of revenue.

“Temporarily suspend operations of UNI-PASS and allow GCNET and West Blue to operate for the remainder of the year in order to assure the nation of revenues, most likely GH¢10bn given depressed trade activity due to covid-19,” IMANI said in the April 21 petition signed by its Founding President

and CEO, Franklin Cudjoe.

The petition noted that the current challenges with the new customs management system, especially at the Takoradi Port, are likely to derail gains made in the enhanced paperless system that propelled an increase in port revenues from GH¢8bn in 2016 to a little over GH¢13bn in 2017 and 2018, working with West Blue and GCNet port technologies.

“It is likely to detract from the assured average daily revenues of almost GH¢33m and ultimately jeopardise the flow of trade,” the petition said.

Senior Minister’s assurances In a statement issued last week, the Joint InterMinisterial Oversight Committee ( JIMOC), under the chairmanship of Senior Minister Yaw Osafo-Maafo, which is overseeing the smooth implementation of the new customs management system, allayed fears of the general trading community about the new system.

“The UNI-PASS technology has been deployed successfully in Tanzania since 2015 under the name Tancis, which World Customs Organisation (WCO) has acclaimed as one of the best innovative trade facilitation systems. Cameroun, like Ghana, has deployed the same technology after successfully developing their system early this year,” the statement argued.

It further pointed out that “in Equador in South America, the system has successfully been deployed since 2010 and it is still operating. The best place to see the efficacy of this UNIPASS customs management technology is in South Korea itself, where since 1998, the system has been deployed to successfully manage their complex and far bigger customs operations.”

Freight Forwarders react Despite the assurances, freight forwarders remain unhappy with the new system.

“Our members cannot use the UNIPASS/ICUMS system because the system is problematic.

Some importers have still not been able to clear their goods since April 9. We are losing a lot of revenue as a result of the failing system,” Edward Akrong, President of the Ghana Institute of Freight Forwarders (GIFF), told the media last week.

Given the problems with the system, most clearing agents, he said, have gone back to use the GCNet/West Blue system.

Mr. Akrong said the chaotic situation that the UNIPASS/ ICUMS system has created at the port does not augur well for clearing agents and the country as a whole.

He therefore called on President Nana Akufo-Addo to intervene in the situation by halting the deployment of the system to save the nation and importers from losing revenue.

Email: Editor@ thebusiness24online. net, kofi.pra@gmail.com.

WhatsApp: 0243376878

AGI agric chair sees silver lining in pandemic crisis

BY EUGENE DAVIS

Localisation and continental trade should become policy priorities of African leaders given the effects and lessons of the raging coronavirus pandemic, Fatima Alimohamed, chair of the agribusiness sector of the Association of Ghana Industries (AGI), has recommended.

Businesses and entrepreneurs need to be encouraged to produce what the country needs, she told Business24 in an interview, adding that boosting trading regionally is also the surest way to reduce dependency on the Western world.

“We have to now leverage what each country on the continent can do and make

a cohesive continental plan. Our priority is now first to make Africa secure, and then others. Exporting raw materials needs to be a matter of the past. Replacing what we are importing with that which can be produced locally is key.”

According to the agribusiness expert, it is time for the government to aggressively champion the patronage and consumption of locally-produced goods to strengthen the capacity of home-made industries, which require such support to improve on their competitiveness.

“Our farmers need not only the support to produce, but also logistical [support], local agricultural inputs, and a market that protects

them and encourages them to produce more, as the demand is there.”

The crisis has also presented some business opportunities that need to be leveraged, she said, emphasising that it is imperative to drive a localisation agenda to generate profits for local industries.

Explaining further, she said: “Belgium produces the world’s most expensive chocolate, and they have the world’s best chocolate crafters—but guess what, they don’t have a single cocoa tree. We and Ivory Coast are two of the world’s largest players and suppliers of the raw material, yet we can’t make a huge profit on it! The narrative must change and the time is now. The

Fatima Alimohamed, chair of the agribusiness sector of the Association of Ghana Industries (AGI), wants the country to replace what we import with that which can be produced locally

scales must tip as Africa is at an advantage for being the world’s food basket, yet our people die looking for a meal a day.”

Meanwhile, the AGI has commended government for

engaging local manufacturers to produce GH¢3.6m worth of face masks, in addition to announcing GH¢600m to provide soft loans to SMEs and extending due dates for filing taxes.

4

MONDAY APRIL 27, 2020

THEBUSINESS24ONLINE.NET

NEWS

THEBUSINESS24ONLINE.NET

MONDAY APRIL 27, 2020

5

UNIPASS to be deployed nationwide tomorrow

BY PATRICK PAINTSIL The Ghana Revenue Authority (GRA) has announced the nationwide commencement and deployment of its new Integrated Customs Management System (ICUMS), otherwise known as UNIPASS, effective Tuesday, April 28, according to a letter sighted by Business24.

Per the letter, all bills of entry (BOEs)—that is, the general information on imported cargo based on which Customs assigns the total value and its corresponding duty payable—are to be processed through the ICUMS at all customs frontier stations in the country.

It further revealed that the third phase of ICUMS deployment, involving the Kotoka International Airport and Tema, started from April 2020, with Jamestown and the petroleum sector expected to complement the entire ICUMS roll-out.

“Accordingly, all customs house agents/declarants operating in all Customs offices are entreated to process all bills of entry in ICUMS,” a notice sent to all agents and self-declarants stated.

The letter also said existing declarations being processed in the GCMS—which is run by GCNet—for which payment of taxes have not been effected yet, declarations for permits

and e-MDA approvals obtained before April 28, as well as all other goods and vehicles, including overstayed and confiscated cargo, will be reprocessed through the ICUMS. “Declarations for which payments have been made but not been cleared before April 28, as well as existing ex-warehousing, Free Zones and other suspense regime declarations, shall continue

to be processed in the GCNet/ GCMS system until the 15th of May, 2020,” another letter that has been sent to the existing vendors clarifying the transition process read.

It added: “Any unresolved challenges regarding the implementation of these transitional measures should be communicated to the Commissioner-General for further action.”

Critics of the new system

have cited the presumed disruptions that it will bring to the shipping community, especially at a time that the ports’ stakeholders were getting used to the system being run by West Blue Consulting and GCNet, coupled with the impressive gains of the paperless port reforms.

But according to the Customs Division of the GRA, the new system is “the best end-to-end customs management system available.”

Policy think-tank IMANI Africa has warned that the decision of the government to terminate the contract of the current single window system operators, GCNet and West Blue, is ill-timed considering the severity of the Covid-19 pandemic on the economy.

IMANI has also demanded an independent review of the UNIPASS system as well as publication of revenue projections from the implementation of the system.

Suspension of dividend payment by banks: implications and effects BY: SAM BEDIAKOASANTE, CGIA

The Bank of Ghana has recently instructed banks in Ghana not to pay dividends to shareholders for the 2019 and 2020 financial years because of the Coronavirus (COVID-19) pandemic and its effects.

Banks in Ghana would have, normally, declared and paid dividends, as approved by their shareholders at the Annual General Meetings (AGMs), around this time of the year in Ghana, but that is not to be because of such instructions from the central bank - the Bank of Ghana, given reasons for such a decision as how the banks would be negatively impacted if they (the banks) should dole out such monies. But has the central bank (BoG) thought of the implications and effects this decision would have on beneficiaries of the dividends?

Implications and Effects Individual and corporate shareholders will not have any income through their

investments in these banks.

But it must be noted that majority of the individual shareholders are pensioners who have invested their hard-earned monies in companies (banks) through the Ghana Stock Exchange.

Corporate entities, including Mutual Funds and Unit Trusts, SSNIT, and other asset management companies, including Pension Funds, are also to lose their investment incomes, which will negatively impact their returns to investors thereby making them unpopular, a situation which began even before the emergence of the COVID-19.

SSNIT, in particular, will be heavily negatively impacted since a major part of its investment income or returns of its investment portfolio comes from these banks (both listed and unlisted) thereby affecting future incomes or payments to prospective and existing pensioners.

It must be noted that SSNIT, in particular, already has problem with its investment portfolio because of its investment holdings in

some non-performing companies (eg. the abattoirs, Aluworks Ltd., PBC Ltd., Cocoa Processing Co., some Hotels, etc.) ; likewise the investment incomes of other fund management companies running the Second (2nd and Third (3rd) tiers of pension funds; all these affecting pensioners incomes in the near future.

The Ghana Stock Exchange (GSE) will also see its trading activities going down since the most vibrant and active listed companies on the exchange are the banks. This situation can even lead to the pulling out of most players on the exchange.

Again, this decision of the Bank of Ghana will see the Ghana Stock Exchange (GSE) performing poorly for the two years running because of the possibility of how trading activities in these listed banks would be vis-avis the Financial Stock Index and the overall GSE Index.

And, could this possibly lead to the GSE having problems joining the proposed broader West Africa Stock Exchange (WASE) platform ? We wait to see !!!

It may seem that the banks

themselves collaborated with the BoG in this decision-making as they would also want to avoid, for any reason, paying these monies to shareholders as they normally wished, but most times cannot avoid.

Meanwhile in denying the shareholders their due, members of the Board of Directors and management (of these companies) have already taken their “part of the cake” in terms of fees and allowances for members of BoDs, and salaries and allowances for the management.

This directive from the BoG has come at the wrong time and definitely will have various negative effects on the investing public.

In the light of the above stated reasons it will be better for the BoG to reconsider its directive or decision to the banks in order for the shareholders of these companies (banks) have their due, and to cushion them financially in a time like this.

The BoG’s directive would definitely create a *vicious circle* within the economy and make investments in

the country a no-go area taking into account how so many citizens have lost their investments to the collapsed financial institutions post the financial sector clean-up.

Hope the BoG would listen this time round and take a more humane approach in this matter for shareholders/ investors have already suffered too much through losing their investments in the collapsed financial institutions, namely the Microfinance institutions, Savings & Loans Companies, other Asset Management companies, and the delisted former UT Bank.

Sam Bediako-Asante, CGIA (Sambed Consult, a Management Consultancy firm) Writer’s email sambed33@gmail. com Tel: 0277518634

6

MONDAY APRIL 27, 2020

THEBUSINESS24ONLINE.NET

E N E R GY

THEBUSINESS24ONLINE.NET

MONDAY APRIL 27, 2020

7

Will hydrocarbon rich african countries be left gasping for breath in the aftermath of the coronavirus? Towards new imperatives for natural resource diversification.

BY FATIMA DENTON, PHD Humanity is witnessing some of the most profound changes seen since the Great Depression. And again, it is the vulnerable among us who will suffer the worst consequences. We are out on a limb, witnessing the most disruptive global transformational mutations observed in the past 100 years.

Several parallels can be drawn between today’s Coronavirus and Albert Camus’ 1947 classic La Peste – translated as “The ‘Plague”, set in Oran, Algeria. True, this new Coronavirus pandemic, Covid-19, bears eerie resemblance to Camus’ plague. Written at a time just prior to the Nazi invasion of France, his rather trenchant narrative that ‘we are all living through a plague’ has disturbing prophetic resonance. But perhaps the strangest parallel is Camus’ analysis that “…plagues and wars take people equally by surprise.” Indeed, the fact is that the current pandemic has exposed our relative unpreparedness in the face of a global public health crisis of such magnitude with many countries across the globe caught off guard.

Africa is often singled out as a continent used to being caught off guard, especially as a result of its chronically weak health infrastructure and its high reliance on global value chains.

The current crisis has significant implications for several sectors important to the development of African countries, not least the oil sector. Perhaps the greatest irony of it all is that fossil fuels, long blamed for the environmental stranglehold exacted on several climate sensitive sectors, are now being left in the ground due to price volatility and depressed demand.

Refineries around the world are processing less crude oil. Indeed, one of the main polluting sectors has found itself on its knees as a result of reduced aviation and transport–related traffic as well as draconian measures to contain the coronavirus.

Oil prices are at the lowest recorded in the past 18 years driving global demand down, pushing the globalised world economy into a recession and creating new trends.

Raw materials make up

one third of Africa’s export proceeds. Africa is a carbon market risk taker as is evident in the recent fallout between Saudi Arabia and Russia, which led to the drop in oil prices before the mighty blow of the coronavirus struck oil consumption.

Oil exporting countries in Africa, not least, Angola, Algeria, Nigeria, and Libya will become the main casualties, given their high dependency on hydrocarbon proceeds to balance their books. And, as if this was not painful enough, the drop in oil prices is simply one of the many reverberations that African countries will face, long accustomed as they are, to having a poor immune system and, despite impressive strides in economic growth, have not become resilient enough to move beyond the proverbial ‘resource curse.’ For instance countries like Nigeria and Angola need oil prices to be around $60 per barrel to balance their budget, but with current prices plummeting below zero they are facing grade economic crisis.

Depreciation of African currencies will create new complications for countries who are compelled to import heavily to maintain food supplies. In addition, even with a well–endowed resource base, many countries are subjected to a history of predation and have remained vulnerable to the vagaries of exogenous shocks.

Even the most optimistic forecasts convey a world economy in distress with global economic growth being halved to 1.5 per cent (OECD figures) almost certainly triggering a worldwide recession. The UN

Economic Commission for Africa (UNECA) predicts that annual growth will drop to 1.8% from a previous estimate of 3.2%. Oil dependent countries such as Angola and Nigeria could lose up to $65 billion in oil related incomes as a result of falling oil prices exacerbated by the current COVID 19 pandemic. The drop in oil demand combined with the crash in oil prices are already affecting exports. As of March 4, about 70 percent of the April-loading cargoes of crude oil from Angola and Nigeria were still unsold.

Quick or short recovery, resuscitating the world economy will require strong leadership and a keen eye kept on macroeconomic fundamentals.

Trade forecasts for other hydrocarbon sensitive economies such as Gabon, Equatorial Guinea, Algeria and Chad, to name but a few, will be bleak. Mature oil established economies such as Nigeria and Angola rely on oil revenues for close to 70% of their national budgets.

This absolute dependence on natural resources means that many countries are at the mercy of the world economy and dwindling commodity prices – their economic rents are predicated on prevailing trends of commodity goods and when public health crises of pandemic scale strike, this reduces foreign exchanges reserves, compromises social spending and derails hard won sustainable development achievements.

Africa faces a triple challenge of transition towards energy security, moving towards a low carbon emissions pathway and charting a growth and transformation plan that will have to lift millions out

of poverty. The coronavirus has made more apparent the vulnerabilities of highly dependent economies on hydrocarbon resources and the associated carbon exposure risks.

The United Nations University’s Institute for Natural Resources in Africa (UNU-INRA) research on stranded hydrocarbon assets, intended as an alert to mineral rich countries, discusses in a widely circulated paper the strong likelihoods of asset ‘stranding’. Stranded assets are “assets that become devalued before the end of their economic lifetime or can no longer be monetised due to changes in policy and regulatory frameworks, markets forces, societal or environmental conditions, disruptive innovation or security issues”. This paper was intended as a primer to send a message to African leaders, especially in oil and gas rich countries, that if global economies move to a carbon neutral world where fossil fuels became the principal enemy, then Africa will need to look to new economic activities and markets. It signalled that with a growing number of companies and shareholders divesting away from fossil fuels, Africa may have to manage its exit from the sector to avoid potential jolts that economies might succumb to if severed from the main resource artery and deprived of fossil fuel proceeds. The study showed that even in some emerging oil and gas countries, the proceeds of oil and gas are being strategically employed towards important safety nets such as Ghana’s free senior high school policy.

Today, given plummeting oil prices, there is little wonder that many African economies will be left severely wounded.

It is becoming increasingly urgent for African governments to diversify their economies and create other forms of growth poles beyond their natural resources. This pandemic, as unwelcome and untimely as it is, sends strong signals to Africa to move rapidly towards promoting diversified economies given the vulnerability of the fossil fuel market, and the length of time it will take for Africa’s oil exporting countries to nurse themselves back to

full recovery. Climate change may not be the top priority of African governments in the post-Coronavirus world, however, economy and ecology are two faces of the same development coin.

Hydrocarbon resources are metaphors for greater resource planning and an effective strategy for African economies to enable a transition that results in a new model of growth. Indeed, Africa’s energy deficit makes the energy sector an essential muscle in its growth and transformation plan, but at the same time, it says to African leaders that business as usual postpandemic is tantamount to re-enforcing widespread economic hardship.

Recovery from this industrial scale depression must recognise the vulnerability of Africa’s resource base and the need to ‘stockpile’ on new diversified economic alternatives in order to reboot the economy.

There are new predictions that the current pandemic will derail achievement of almost all of the sustainable development goals.

In Africa, where leaders are struggling to square the sustainable development circle and to manage onerous debt repayments, new health vulnerabilities in known hotspots will leave many economies gasping for breath.

With global economies heading towards a cliff edge, Dr. Rieux’s famous “common decency” retort in Camus’ Plague will go a long way to ensuring that African economies are not given a wide berth or left to go on an indefinite social distance tour. Rather, the post-corona era should start with critically revisiting old paradigms and taking bolder moves towards diversification of natural resources. But, for a continent that has not had its share of the carbon budget, and not exercised its full sovereignty vis a vis energy choices, adopting new perspectives on energy futures can be considered as enlightened self-interest. As the Ethiopian Prime Minister advises: “… if the virus is not defeated in Africa, it will only bounce back to the rest of the world.”

Fatima Denton is the Director of the Institute for Natural Resources in Africa at the United Nations University, Ghana.

8

MONDAY APRIL 27, 2020

THEBUSINESS24ONLINE.NET

F E AT U R E

THEBUSINESS24ONLINE.NET

MONDAY APRIL 27, 2020

9

Now is the time for bold, creative and credible leadership

BY ISHMAEL E. YAMSON On March 27 the President, Nana Addo Dankwa AkufoAddo announced a lockdown of the country for two weeks.

At the end of the two-week lockdown the period was extended for one more week. Later that same day the one week was changed to two weeks. Last Sunday [April 19] , although there was a general feeling that there would be further extensions, the Government lifted the lockdown in the specified areas after three weeks but retained some of the restrictions. That notwithstanding, the health risks and the economic and social uncertainties remain and are compounding every day and there is no sign that they will abate any time soon.

Government, employers, and citizens are all apprehensive about what the immediate, medium, and long-term future is likely to look like.

The general feeling is that it is bleak, no matter who you talk to.

The world is faced with an unprecedented crisis, nothing like this has happened over a hundred years and nobody has answers, only guess work and hope. And worse still the world is dealing with a moving target, difficult to predict its scope and scale and when it is going to end.

In Ghana, the lockdown and more critically its execution seem to be causing “more harm than the problem it was intended to solve.”

The markets are full, the commercial vehicles are packed with ‘traders’ and the reliefs announced by the Minister of Finance to SMEs are not reaching majority of these targeted businesses and the distribution is very likely to be abused. There is widespread deep despair among both employers and employees in the medium, small and micro size businesses that make up about 80% of Ghana’s businesses. The poor and the vulnerable are suffering from food shortages and majority have lost and may continue to lose their daily incomes.

Overall, the economy is suffering very widespread dislocations, deep financial stress and severe fiscal strain on the government budget.

The uncertainties of the pandemic will surely create profound macroeconomic risks for the economy. What needs to be done now is to chart the next steps with boldness, creativity and

credibility.

I offer the following recommendations to Government, business executives and civil society: GOVERNMENT 1. The crisis is fundamentally a health crisis, which is creating monumental economic and social disruptions.

Government’s primary focus must be to stop the spread of this corona virus. And it must be bold in its actions even as it seeks to be realistic about our “special circumstances.”

If government contains the health crisis early, it will be easier to contain the economic and social damage it is causing. That is why a better job could have been done with the economic reliefs announced to support SMEs as well as those offered to ‘frontline health workers” and the vulnerable in society.

Case in point, not a very good job was done with the planning and execution of the distribution of food to the poor and vulnerable in the affected areas. The execution has suddenly rekindled the Ghanaian’s deep sense of entitlement. Also, Government could dedicate part of the IMF borrowing to save jobs and help SMEs survive the pressure from Covid-19 in a transparent, equitable manner that rewards compliance by offsetting all payroll tax and pension contributions due from SMEs registered and in good standing with the GRA and SSNIT. This would remove any complex application criteria and all perceptions of bias. In essence, all these initiatives are great but the execution is not creative or effective and they may now end up creating more disaffection than the problems they were intended to solve.

2.

There is confusion as to whether there is an abundance of food and, therefore, we need not panic or indeed there is potential crisis in food supply that we need to understand and plan an appropriate response. Just before the lockdown I drove from my village to Accra on my usual road. Before December it was awash with reasonably priced foodstuffs.

On that day most foodstuffs had virtually disappeared from the roadside and the explanation was simply that we were entering the off season, and the traders were right. So, perhaps

the Minister of Food and Agriculture needs to confer with his District field officers to confirm his confidence that indeed there is abundant food supply or accept the reality that the lean season for basic staple food supply starts now.

Government needs to interrogate the food supply chain to identify any gaps and plan to fill them. Severe food supply shortages will be catastrophic for the country.

If there is need to import food, let’s do it now, and if we must ask for help from WFP, let’s do it. There should be no shame. Our farming activities will surely be disrupted by the health crisis, food distribution will be disrupted, and it is already being disrupted so let us show more leadership and take bold decisions that are required to avert food shortages and skyrocketing food prices. It will be socially indefensible and politically unwise not to be prepared.

3.

Define clearly and transparently, how the resources secured from Parliament and the bilateral and multilateral support from Development Agencies, including the IMF and the World Bank, will be applied.

It is the only way to secure confidence and trust from the people on whose behalf the funds have been secured.

It is tempting in a time of crisis such as what confronts us, to ride roughshod over good governance but that will not be beneficial even to the government. Having taken a bold decision to step forward ahead of every other government in Africa to secure the Agreement of the IMF, the World Bank and other partners to secure their support in this crisis, now is the time for Government to be credible in how the funds will be applied.

4. There is a great opportunity for this Administration to rethink the structure of government and the huge bureaucracy which together promote inefficiency, ineffectiveness, and corruption.

Ghana cannot continue to carry this wasteful architecture and survive in the new world unfolding before our very eyes. Every country’s budget is stretched so there isn’t going to be that much largesse out there, and even the financial markets will be more cautious lending to poor and debt-ridden countries such as ours. It’s regrettable that we are back to the HIPC days because the

foundations are still weak, as in many African countries.

It is also an opportunity to take a deep fresh look at how this country has been spending its own resources and those secured externally as commercial and bilateral/ multilateral loans, aid and grants. It is sad to see how helpless we looked at the beginning of this crisis when it became clear that we didn’t even have the very basic PPEs to protect our health workers. One would ask on what we have been spent all the budgetary allocations to health and the many loans we contracted which our Parliaments approved over the years.

A new norm has been established for us, and hopefully we will see more strategic thinking in our budgetary planning and an end to non-value adding, politically motivated expenditures. Above all and even more importantly we should see an end to the imprudent, indiscreet, and pervasive corruption which has destroyed this country and continues to plague us.

5. Finally, Government must be credible and transparent in all its actions and communications. Depoliticise the communication in action and initiative because this virus is party neutral.

Government needs all citizens of Ghana to listen and believe that their government which they elected into office is working in the interest of all Ghanaians in these times of extreme uncertainty.

And the leaders of all the other Parties together with their Parliamentarians should also avoid politicising Government actions and initiatives. Government may have done a poor job in defining the target groups and the channels through which to reach the poor and the vulnerable with food.

Nonetheless, this must not be capitalised upon and misinterpreted as a deliberate attempt to exclude people who are not supporters of the ruling party from being giving food to eat. It is cheap politics whose consequences may be difficult to contain. A hungry man is an angry man.

That is what the sages say. For once let us all be on the same side of the battle line and win this battle for Ghana.

Business Community: 1.

As the crisis unfolds and the uncertainties mount, even though we seem to be assured that we have passed the most critical stage,,

there is a great temptation to forget that those who are holding the business together today for tomorrow are your employees. Show them care and understanding and you will earn their trust forever.

Most businesses are faced with financial and liquidity problems, their supply chains and sales channels have been disrupted and their profitability and, in some cases, the very viability of their businesses are in great doubt. It is reasonable in situations like these to conclude in the short term to let some of your people go, while the remaining employees suffer deep cuts in their wages.

My advice is that you should be patient and don’t act on fear and despair. Spend time to understand the full impact of the crises on your business and on your employees, and do so with facts, figures and clear evidence, short term and medium to long term.

Then undertake scenario analyses of all the “what ifs,” and explore all short-term potential opportunities including redeploying employees based on opportunities for revenue generation and cost savings. Your employees should be there when the bounce back happens, and they should be employees who will appreciate you and not employees who shall see you as being without conscience. If you must be drastic in cutting numbers remember to do what I am recommending next.

2. C o m m u n i c a t e regularly, communicate honestly and truthfully, and communicate with conviction and empathy. Engage your employees daily, weekly, and as often as you consider appropriate and effective, either through newsletters or any appropriate media.

Brief your employees on developments of the crisis in the country and how it is affecting your industry and your company. Explain the impact on your supply chain, your sales channels, on your cashflows and liquidity and what actions you need to take to sustain the company.

Solicit ideas from your employees, it will surprise you how creative they can be and be open-minded. When you do this even if you have to let some leave they will share your determination to save the ship, and remember to give those leaving the assurance of the opportunity to return if there is a bounce

10

MONDAY APRIL 27, 2020

THEBUSINESS24ONLINE.NET

F E AT U R E

THEBUSINESS24ONLINE.NET

CONTINUED FROM PAGE 10 back.

3. Accept that your world of business is never going to be the same, and probably not even in the short term.

So, learn to adapt your processes and systems to align with the new business model. Take your time to understand the new world of business and adapt. We now know that there are many things businesses can do without the physical presence of employees and clients in office premises.

There are many buying and procurement processes that can easily be automated to avoid human intervention and potential fraud. You may no longer need a huge office building, but you will need new communication architecture and you may need to accelerate the digitisation of your business processes. Those companies that accept this change and embrace it will be more efficient in the use of assets and will gain competitive advantage.

4. Prepare for the bounce back. Governments all over the world are in a hurry to re-open their economies but I think any poorly planned opening of the economy will cause more economic and social damage. This crisis is primarily a health crisis and governments, including ours, should open-up the economy only in line with what the health situation and the science can allow but this may not happen.

Therefore, businesses must spend time to understand what government is planning and prepare your company for the increasing normality, but always be one step ahead of the next development. It will require the agility and total commitment of your core team and the rest of your employees, so again, communicate effectively.

5. Support government’s efforts in every way you can.

I have been impressed by the show of massive support from the private sector in the provision of PPEs, provision of food items for the poor, the vulnerable and those dislocated through the poor execution of the government orders. This is not about doing good to do well. This is about helping to fight a national health crisis of monumental proportions and winning with the people of Ghana. Businesses must always demonstrate that they have conscience beyond the profit motivation. I encourage all businesses to participate in the effort to contain the spread of the virus.

6. Finally, businesses must learn business continuity and sustainability lessons from this crisis. Most

businesses were caught completely unprepared, and even for those who were prepared, their scenarios were limited to only the knowns and not the unknowns, the unpredicted and maybe what they never thought could ever happen – the absurdity. This indeed is a hard lesson to learn, not only by businesses but by Government and political leaders, who, going forward should also plan for unimaginable crises.

CIVIL SOCIETY: The brunt of the decisions being taken in respect of the crisis, by governments and the business community are borne by every person in Ghana. As a result of the crisis the President has obtained extraordinary powers from Parliament to restrain some of our freedoms and he has, as is happening in countries all over the world in different forms and scale. Let us all observe the health protocols and the restraining orders so we can live to rebuild our lives and our country.

1. There is widespread fear and panic, it is therefore crucial that government communicates clearly, regularly and with compassion.

These are extraordinary times for everybody but the poor and the vulnerable often bear the greatest blunt and they suffer most. It is therefore important that much attention is focussed on them in all government programmes. Every effort must be made to lessen the impact of the crisis on the poor and the vulnerable.

2.

It is well known that recessions exacerbate income disparities and it is not going to be different in Ghana this time. Many ordinary Ghanaians have already lost lots of money. Some already lost everything in the recent financial institution closures, and with the crisis and the lockdown coming on the heels of that, civil society must hold government accountable and demand that the actions it takes do not cause even deeper and more extensive socioeconomic dislocations for Ghanaians. A deeper and more strategic approach is therefore urgently required to respond to the crisis short term and medium to long term. Without that, there is every probability that the country will face more serious economic and social problems in the coming months and years.

3. Closed for “corona business”. Many businesses have closed with thousands of employees sent home.

Employers are configuring what they should do in these uncertain times with all these

employees who have been their most important asset all these years. And most employers don’t have time; they are not generating fresh revenues while their bills are due and piling up. They are facing potential insolvency imposed on them by the corona virus.

Some employers may deploy the Force Majeure clauses in their contracts and just send their employees away.

Other employers may stagger salary payments over two or three months, stripped of all non-basic salary benefits and decide after the lockdown, while the rest, which see no possibility of raising money anywhere to fund their operations, may simply pay off all their employees with the hope that when the situation improves they may be recalled. All these actions carry considerable uncertainty for workers and their families and large numbers of them are going to lose their jobs.

Governments all over the world are promising special stimulus packages, but stimulus is not the same as recovery. The world of business has changed for good and the nature of work has equally changed, businesses are therefore now going to find ways of creating the businesses architecture that will align with the new world economic model. So, governments, employers, trade unions and workers, will all have to work together to find soft landing for those workers who will lose their jobs. We cannot behave as the ostrich and believe that businesses will open as usual and all workers will troop back to their places of work. It’s not going to happen that way, unless our businesses leaders behave as they have always done, wait till they see the destruction of their businesses and then blame the world economic order, which we can all see unfolding before our very eyes. Let our government, local entrepreneurs and employers, trade unions and workers begin a dialogue to plan a response that will ensure the survival of businesses and the creation of new ones, not only to protect jobs but also to expand the economy to create new job opportunities.

4. Since the lockdown I have spent more time on the computer since I had my first PC, doing things I never tried nor wanted to do, including looking for unsaved work which I have lost. This new world will require rapid adaptation by employees and new entrants into the world of work to new skills required in this new world order. We should learn and unlearn and acquire fresh new skills that will qualify us for the

MONDAY APRIL 27, 2020

new world of work. As Alvin Toffler, the Autor of Future Shock once observed, “the illiterates of the future are not those who cannot read or write, but those who cannot learn and unlearn.”

Following lockdowns in many parts of the world, human beings have had to leave their places of work, including farms. However, technology and machines took over literally most of the work human beings were doing. Those who have had to work from home have been glued to their computers, while meetings and conferences have proceeded without any interruptions. In many companies the deployment of smart machines to replace labour has been accelerated and the pace will grow faster.

Ghana needs to take a bold and courageous step to take a fresh look at our educational system and evaluate the content of what is being taught our children and students. We should educate for employability and not to just churn out large numbers of JSS, SSS and University graduates who will only go and swell the large number of unemployed youth, whose numbers have been growing very fast in recent years. It should be a key strategic thrust to make every child computer literate by age 12 in order for our children to fit the new world of work. If we fail we will only be producing what my renowned professor Alex Kwapong described as ’illiterate graduates’.

5. The extent of the economic and social dislocation and destruction is going to be deeper and more extensive than we can anticipate. The new disruptive world is coming faster than expected. Those who are going to suffer most are the poor, the vulnerable, the unemployed and those about to lose their jobs and livelihoods. Anxieties are growing and the country and its government must act fast and respond effectively to prevent a deeper crisis in the short to medium term. I offer the following advice: a) This crisis is fundamentally a health crisis.

The economic and social crises we are facing have all been triggered by the health crisis. Our priority must be to contain and defeat the spread of the virus. Every effort must be put behind stopping the spread of the crisis so that we can limit the scale and depth of the economic and social dislocation and damage.

That is why I am sceptical about what appears to me to be a premature lifting of the lockdown, especially in Accra which has become the epicentre of the spread of the virus. b) We must have a bi-

11

partisan, national agenda devoid of destructive and diversionary politics to serve and protect our businesses, our workers, the poor and the vulnerable. This is not the time to do politics with the lives of Ghanaians, and as Governor Cuomo of New York State has said, let our politicians “chose who should live and who should die.” Let the Government expand the Security Committees at the District and Regional levels to oversee the distribution of economic support and food. And the expanded Committees must include members of the other political parties and independent professionals with knowledge of rural development, management of pro-poor programmes and related skills. That way, the opportunity for political exploitation and abuse will be removed. This should also deliver transparency, trust and credibility. The poor needs our compassion, not their exploitation. I am aware that the mandate of governing this country was given to the government in 2016, but in a time of crisis, bi-partisanship and consensus building should supersede partisan politics. And that is why all Ghanaians surrendered some of their rights under the Constitution to the President to restrict their movements.

These are extra-ordinary times that require extraordinary concessions.

CONCLUSION: We are in unprecedented times fighting an enemy of whom we know nothing or at best very little. This enemy is inflicting profound economic and social dislocation and damage to our economy and businesses and inflicting pain to our citizens. More frightfully, we don’t know the reach of this enemy and how to stop it but we believe that if we extensively test our citizens and do intensive contact tracing, we can limit its ability to spread.

This enemy is the Covid-19.

The world has marshalled all it’s arsenal to discover a vaccine to stop the spread and eventually defeat it. The world is not there yet and we have to wait; how long nobody knows. What we can do is to protect our country, our economy, our businesses and our people and we expect the Government to take those actions that will secure our future as a country. And let all the citizens of Ghana support the Government in this allimportant battle for survival and prosperity.

Ishmael E. Yamson is the Chairman, Ishmael Yamson & Associates

12

MONDAY APRIL 27, 2020

THEBUSINESS24ONLINE.NET

ICT

THEBUSINESS24ONLINE.NET

MONDAY APRIL 27, 2020

13

5G Technology and the link to Coronavirus Disease (COVID-19) The Institute of ICT Professionals Ghana (IIPGH), an association of professionals in the information and communication technology (ICT) industry in Ghana, has been following with keen interest recent conversations on social media and mainstream media with regards to stories linking the new mobile telephony technology called 5G to the novel coronavirus disease (COVID-19). The institute, in this statement, would like to educate the public on this contentious issue and demonstrate why the purported linkage is not supported by scientific evidence.

Coronavirus and 5G roots Corona virus is a zoonotic disease which means it is an infectious disease caused by a pathogen that has jumped from non-human animals (usually vertebrates) to humans and then spreads from human to human.

Pangolin-like animal is suspected to have transmitted this string of the virus called the novel coronavirus disease (covid19). It was first reported in Wuhan city in China and has so far been traced to an animal market in that city.

Coronavirus is biological and can be transferred from one person to the other through the mouth, nose and eyes when one comes in contact with infected person.

The infected patient who may be asymptomatic or symptomatic can transfer the virus to another person when droplets of fluids containing the virus are spread through coughing, sneezing or spitting into the air or surfaces.

5G on the other hand is a technology to provide an extra-large pipe of internet to connect mobile phones and other devices with 10x the current speed and data volume being provided by 4G. 5G is a technology designed to carry voice and Big data using non-ionizing electromagnetic wave as a means of transport over the air interface to devices. These devices are mainly electronic devices and not human beings. Nonionizing electromagnetic wave in this context is the range of frequencies (3KHz – 300GHz) on the electromagnetic spectrum that cannot cause harm to the human tissue/cell/DNA when exposed to the radiation.

E.g. FM Radio Frequencies (87MHz – 108MHz), Television Frequencies (700MHz), Mobile network frequencies such as 1G (150MHz -

900MHz), 2G (900MHz – 1.8GHz), 3G (1.6GHz – 2.0GHz), 4G (2GHz – 8GHz) and 5G (2GHz – 300GHz).

Evolution of Mobile Technology in Ghana Mobile telephony was invented in early 1980s during the Third Industrial Revolution (3IR) when electronics and information technology systems were coming up. When the wireless version of telephones was developed, it was named First Generation (1G). This 1G was developed on technology called the analogue mobile systems with a frequency modulation called FDMA (Frequency Division Multiple Access). It was designed for voice calls only and not digital.

In Ghana, the first 1G mobile network was launched in 1992 by Millicom Ghana Ltd with the brand name Mobitel. Second Generation (2G) of mobile telephony technology, called the GSM (General System for Mobile Communications), was also introduced in the 1990s.

2G came with features such as text messages and later introduction of GPRS (General Packet Radio Service) which was followed by EDGE (Enhanced Data for Global Evolution). GPRS was the first feature that allowed internet service (data) to be introduced on the mobile phone with a speed of 110Kbps. GPRS was quickly followed by EDGE which provided a slightly higher speed (throughput) of 135Kbps. This excitement of internet on the phone sparked the beginning of a mobile data race in the early 2000s.

Spacefon (Now MTN) was the first to launch GSM Network in Ghana in 1996 followed by One-touch (Now Vodafone) before the analogue operator Millicom introduced their GSM network called Buzz in 2002.

The Third Generation (3G)

then followed in the 2000s and provided the possibility of broadband internet on the mobile phone, popularly called mobile broadband.

With 3G came corresponding devices, such as smart phones with wide screens that allowed users to browse on the phone, download applications (apps) and make video calls. MTN, Airtel-Tigo, Vodafone all deployed 3G from the late 2000s and early 2010s.

The quest for faster internet speed using mobile devices such as phones, tablets, music players among others pushed for yet another new technology with higher data throughput/speed. The Long Term Evolution (LTE) was developed in 2010s as the Fourth Generation (4G) of mobile technology. First Generation mobile systems radio access designed to provide speed of 100Mbps – 300Mbps. This speed is sufficient to stream videos and download high volume of data within seconds compared to 3G. Emergence of 5G and Standardization In order to achieve this ambitious plan of using internet as a medium to transport big data to connect devices that will enhance industrial efficiency, improve healthcare delivery, education and agriculture among others, the 5th Generation (5G) of mobile technology has been developed. This is the Next Generation of mobile systems, which should increase the data rates of 4G by more than 10 times with new radio interface and new spectrum, and provide possibilities for many new emerging services in different verticals. It is now being deployed in some technology matured markets such as United States, United Kingdom, China, Australia etc.

The specifications for a new generation of mobile telecommunications, including 5G, are set primarily by two bodies: ITU (International Telecommunication Union) and 3GPP (3rd Generation Partnership Project). ITU is one of United Nations’ agencies devoted to information and communications technologies. It coordinates the shared global use of the radio spectrum, promotes international cooperation in assigning satellite orbits, works to improve telecommunication infrastructure in the developing world, and assists in the development and coordination of worldwide technical standards. The National Communications Authority (NCA), an agency under the Ministry of Communications, allocates and regulates all frequencies.

5G Spectrum and Microwave Radiation 5G is deployed on a range of frequency bands from low and narrow frequency bands to high and wide frequency bands. This highband spectrum is sometimes called millimeter wavelength (mmWave) in the cellular industry, and it enables about 18 - 80 GHz of frequency.

5G can be deployed with low frequency band such as 700MHz – 2500MHz as being deployed by Verizon, a mobile network operator (MNO) in the United States to cover wide area while deploying the high-band frequencies to help with the features that 5G promises, including potentially supporting 1 million devices per square kilometer.

The microwave radiation from 5G equipment is not harmful to the human body.

Frequency band between 300MHz – 300GHz have been allocated as microwave frequency bands. Because of frequency bandwidth constraints and the requirement of higher bandwidth to transmit big data, 18 – 300GHz range has been reserved by most countries to deploy 5G technology to harness the benefits of wide frequency band. This high frequency does not mean that radiation levels are being compromised.

First, the range of frequency is still within the non-ionizing electromagnetic radiation which simply means it does not emit harmful radiations that would break chemical bonds or remove electrons when in contact with human

tissues. It cannot alter the DNA of humans. The International Commission on Non-Ionizing Radiation Protection (ICNIRP) is an international commission specialized in non-ionizing radiation protection. ICNIRP checks the emission levels of telecommunications equipment and devices to ensure their emissions are within the acceptable threshold.

Radiation Protection Institute (RPI) is the organization in Ghana that conducts tests and issues certificates to Mobile Network Operators (MNOs) before telecommunications equipment are installed in communities. RPI uses the thresholds set by ICNIRP to benchmark radiation levels recorded in the field. 5G radiation tests have been conducted in UK, Australia and other countries where it has been deployed and, so far, the radiation levels have been extremely low and within the acceptable thresholds.

Conclusion In the final analysis, the Institute will like to state, emphatically, that there is no relationship between coronavirus and 5G. Additionally, 5G does not spread covid19 and the general public should disregard conspiracy theories linking the new technology to the deadly pandemic. It is important to stress that radiations from 5G antennas have not be found to be harmful to human health. On the contrary, 5G technology, if eventually deployed in Ghana, will create a bigger pipe with higher data speed from mobile internet service providers (ISPs) which can be used by individuals, businesses and government agencies to increase productivity.

For more explanation, visit our website: https://iipgh.org/statementon-coronavirus-and-the-link-to-5gtechnology/. Contact: Mr. David Gowu, Executive Director, Institute of ICT Professionals Ghana. Email: david.gowu@iipgh.org Mobile: +233242773762. Website: www.iipgh. org

14

MONDAY APRIL 27, 2020

THEBUSINESS24ONLINE.NET

E D U C AT I O N

THEBUSINESS24ONLINE.NET

MONDAY APRIL 27, 2020

15

Deploying technology for tertiary education—the AIT experience

BY DOMINIC OSEI-BOAKYE One of the industries in Ghana that is most hit by the COVID-19 pandemic is the education industry. Industry players never anticipated this storm as they enjoyed the comfort of face-to-face lectures.

To them, they were the best institutions in Ghana fighting over awards etc.

Today, the government has not shut down educational institutions but has only banned educational activities that will involve physical contacts and several universities including some of the big ones in the industry are virtually shut down. What has accounted for this misery? The answer is simple; total disregard for the deployment of technology in improving educational delivery in Ghana over the years.

The AIT case (the unsung heroes) In 2009, a new university called the Accra Institute of Technology (AIT) was born. Led by it president, Professor Clement Dzidonu, a world-renowned computer scientist, their mode of education delivery was different. Way back in 2009/2010 academic year, the university started deploying technology in education in Ghana. The following are some of the technologies deployed: Learning Management and Administrative System (LEMASS) In 2009, the university had developed a Learning Management System where all the university activities took place. The LEMASS became the center of the university where most of the activities took place. Besides the face-to-face lectures, all other academic activities took place on the LEMASS. Submission of Assignments Online Part of the LEMASS allowed students as of 2009/2010 (10 years ago) to submit assignments using technology. Since the establishment of the university, their students have never submitted hard copy assignments.

The university does not insist on students buying books from lecturers. Assignments are posted on the system, students access them, answer them and come back

to upload.

Access to Learning Materials and Other Resources For ten years, all students of AIT after their registration into the university are automatically given their learning materials including books, handouts, articles, audios, and videos. With collaboration with MIT, the university has all the Open Source Materials from MIT and load them on the LEMASS. As a student, once you log in, you access all your materials. These resources can be accessed on mobile phones, laptops, and other electronic devices. Students can therefore read anywhere they find themselves. This again started way back in 2010.

Electronic Library AIT is one of the few if not the only university that introduced a fully functional Electronic Library. With only a reading room where students can have their peace to read, the university does not keep a physical library.

They have eBooks, audios and videos, among other all stored on the electronic library for years. Therefore, students can access all materials anywhere they find themselves.

Ban on Sale of Books and Handouts AIT became the first university to ban the sale of books and handouts by lecturers.

Typical of Ghanaians, you can deploy all the technologies in the world, people will not use until you put policies in place to ensure compliance. This became one of the basic requirements to employ any lecturer. If you do not sign on this agreement, you are not employed. The only lecturer who decided to disregard this directive, the university administration

used his salary to refund all the monies he took from the students to them. This is a university that is committed to the use of technology Introduction of Open University Education AIT is the pioneer of Open University Education in Ghana. With all the technologies discussed above and in collaboration with Open University of Malaysia, the university introduced this unique program even before some universities thought of distance learning programs. Most of the distance learning programs in Ghana is structured around Open University Concept introduced by AIT in 2009/2010 Instructor Recorded Videos In January 2019, not thinking COVID-19 will show up, the university started video recording all their lectures meant to be uploaded on their LEMASS so students who miss lectures or even those at lectures can watch and listen later. In this COVID-19 season, all these videos have been deployed to students and they can sit at the comfort of their homes, watch their lecturers teach and later meet them online for discussions. No wonder this COVID-19 problem has had no negative impact on them.

The Resistance Indeed, from the above, the Management of AIT saw into the future and identified technology as the tool for improving education. No wonder they call themselves ‘The University of the Future’. Yes, they saw the future way back in 2009.

However, this success did not come without resistance.

Typical of humans and our unwillingness to embrace change, several industry players including employers, mentors, regulatory

agencies rubbished these ideas and at some stage threatened to punish AIT if they do not stop and follow what everyone was doing.

When AIT graduated their Open University students in 2012/2013, companies did not employ the graduates.

Even educational institutions refused to recognize the accredited certificate by the National Accreditation Board and refused to promote our graduates. Some members on boards or panels of regulatory agencies who did not see this future found several grounds to discredit the technology deployment.

I remember in one of such meetings, a renowned Professor on the panel did not understand why AIT is using E-Library and posited that an E-Library is not necessary and possible in Ghana because our networks are bad, students don’t know how to use computers and no one including himself likes to read lecture notes and materials from only computers. They should be printed or else……..

Our graduates would call and be lamenting that their certificates are not been recognized because the people claim the course was done online and it is not genuine even after explaining to them that they attended physical lectures on weekends The recognition of certificates and progress of AIT did not even come from people generally recognizing the role of technology. It came from our graduates who got the opportunity to prove themselves and they started showing the knowledge and skills they acquired from AIT. This paved way for companies to now request the services of our graduates. Not even until COVID-19, Ghanaians still did not respect online degrees.

How many people have online degrees recognised in Ghana? That is not to say I don’t know some of these online schools are fake.

COVID-19 ERA After COVID-19 and the banning of physical lectures as well as physical campus activities, what has become of educational institutions in Ghana? I once saw a whole directive from a renowned university in Ghana asking their lecturers to meet their students on WhatsApp to teach them. Can you imagine that? In 2020, some universities don’t even have Learning Management Systems to load their results.

They still publish results on notice boards and others still keep their results only in Microsoft Excel.

Another publication I saw somewhere stated that their lecturers are now putting together their learning materials together for upload on their systems so students can have access. I ended up asking myself ‘so what have they been teaching the students all this while?

Most likely from the heads of the lecturers or some of the 1920 old notebooks. Did we have to wait for COVID-19 before loading materials on a learning management system? Don’t be surprised that in 2020, some of your Professors may not even know how to prepare PowerPoint slides to think of teaching students on ZOOM or Google classroom.

It is a big shame that in 2020, a ban on physical activities on campuses could just shut down higher institutions, created this panic to the extent that student bodies release press statements asking for a halt of online learning.

The world has moved on and technology in education is no more an option. It will be a big shock to me if we go back to our normal way of education after COVID-19.

It will just mean we did no learn. Let Ghana learn from the AIT example and indeed other good examples in the world and deploy technologies to improve education.

I hope that one of the positives of COVID-19 will be a total overhaul of our educational systems with technology at the center.

God Bless Our Homeland Ghana

16

MONDAY APRIL 27, 2020

THEBUSINESS24ONLINE.NET

T E C H N O LO GY

THEBUSINESS24ONLINE.NET

MONDAY APRIL 27, 2020

17

Facebook targets zoom with new group video chat feature

Facebook Inc. is launching a new group video chat product meant to capitalize on a world now stuck indoors and offer an alternative to services that have exploded in popularity in recent months, like Zoom.

Messenger Rooms, a feature that will be available on Facebook’s core social network and its Messenger app, will allow video chats among as many as 50 people, and won’t require participants to have a Facebook account, the company said Friday in a blog post. Chats will be free with no time limit, and eventually users will be able to create a “room” from any of Facebook’s products, including WhatsApp and Instagram.

The goal is a group video product that feels more social, and less corporate than what’s currently available, said Facebook Chief Executive Officer Mark Zuckerberg. People

in Messenger Rooms will be able to use Facebook’s augmented reality filters, or jump between chats to visit different groups of friends, an effort to create “spontaneity and serendipity,” Zuckerberg added.

“All the products [out] there were primarily focused on enterprises and we thought that there was an ability to do something in the consumer space,” the Facebook CEO said this week via video chat from his home. “It’s meant to be more casual. Not everything has to be planned out in advance.”

Video chats have become a staple given the billions of people around the world staying indoors because of the coronavirus pandemic. Zoom Video Communications Inc.’s app, aimed at companies for business meetings before the outbreak, has jumped from about 10 million users to more than 300 million in a matter of months. Zoom’s

shares declined 2% after Facebook’s announcement, reversing a gain of as much as 7.3% earlier Friday.

Houseparty, owned by Epic Games Inc., which also lets users bounce between group chats, said it added 50 million new sign-ups in a 30day stretch, as much as 70 times its normal amount in some markets.

Facebook, too, has a number of video chat products already in high demand. More than 700 million people make voice or video calls every day on Messenger or WhatsApp, Zuckerberg said, a number that has increased since the emergence of Covid-19.

The Menlo Park, Californiabased company started shifting product priorities last month after seeing those spikes in usage from people using its live video and calling features. The demand prompted Facebook to announce other video

features this week, including the ability to save Instagram Live videos after they’re over, and start a video chat inside Facebook’s dating feature.

Video chats on WhatsApp can now host eight people, twice the previous amount.

While Zoom has surged, it has struggled with a series of security mishaps that put users’ privacy at risk. It also suffered from “Zoombombing,” where internet trolls took over chats and posted pornography or racist content to unsuspecting participants.

Zuckerberg said he has learned from Zoom’s early mistakes. Facebook users who create a chat can also select participants, eject people if needed or lock the room. The company won’t watch or listen to calls, and there is no ability for users to record video chats, a spokesperson said.

The social network’s algorithms will help determine which available

rooms to show users, Zuckerberg said, recognizing that not all Facebook friends are created equal.

“We all have the random uncle or someone that you added a few years ago,” he said. “Not every one of your Facebook friends is someone you want to hang out with.”

Zuckerberg said Facebook’s long-term priorities haven’t changed much. The company still is moving forward with plans to encrypt all its messaging services, and make them interoperable -- meaning you’ll eventually be able to send a message from WhatsApp to a user on Instagram, for example.

The Rooms video chat feature, he said, “is probably one of the first very clear consumer services that has integration and works across each of the apps. That’s an important piece – maybe an initial milestone on the path to broader interoperability.” bloomberg.com

18

MONDAY APRIL 27, 2020

THEBUSINESS24ONLINE.NET

L AW

THEBUSINESS24ONLINE.NET

MONDAY APRIL 27, 2020

19

Lessons from Covid-19 Pandemic: Newer ways of drafting force majeure clauses in a contract

BY KWEKU ATTAKORA DWOMOH

The COVID-19 pandemic which originated in Wuhan, China, and has spread across the world over the past few months has affected perhaps every sphere of human existence currently.

It has had diverse effects on the politics of nations, health, law, and on human and business relations.

Contractual relations between and amongst parties have not been left out. The abilities of parties to perform under contracts entered into have come under strain.

Pursuant to several pieces of executive instruments, certain parts of the country were placed under a lock down, movement into and out of the country has been curtailed and intercity movements restricted.

The contractual questions that arise in these times are: What happens to the contractual obligations under a contract? What remedies lie to a defaulting party under the contract? In this article, the common law doctrine of frustration and the force majeure clause in contracts will be discussed.

Absolute liability in a contract and frustration of a contract Arguably and as is known within the Ghanaian military parlance, the first rule is “Obey the rule, before you complain”. This rule explicates the understanding that the rule or “agreement” laid down must be adhered to before the aggrieved party can later make a complaint on why s/he failed to comply with the rule.

In contractual relations, this applies as well. The cardinal rule is that the contractual parties must respect and adhere to the dictates of the contract. At common law, parties under a contractual relation were obligated albeit mandatorily to perform their duties under the contract by the doctrine of absolute liability (Paradine v Jane, 1647). Under this doctrine, when a party contracts validly and voluntarily enters into a contractual relation with another part (ies), the obligations under that contract must be performed at all cost notwithstanding the fact that the performance of the obligations might have

been rendered impossible to perform.

The reason for this absolute doctrine to perform was premised on the fact that the contractual parties must always negotiate expressly for contingencies.

The parties were also required to expressly state what shall ensue in the event of the named contingency (Ibid).

This requirement even on the face of it appears arbitrary.

Contractual parties are not always in control of events around them, especially those involving third higher parties. Further, life is subject to events beyond the control of man. Clearly the strict contours of this doctrine led to absurd judicial decisions.

The absolute doctrine to honour contracts was reconsidered in 1863 where the court in the case of Taylor v Caldwell (1863) considered the hardship such an absolute obligation cast on contractual parties.

The court reasoned that in any contract, there should be an automatic mutual discharge of the contract where the performance of the contract became impossible to perform of which the impossibility was neither through the fault of either of the parties but was by a supervening event. That supervening event must have rendered obligations under the contract as being radically different from those contemplated by the parties at the inception of the contract. The consequence of this, as espoused in the case of Taylor v. Caldwell is to terminate the contract on the grounds that the contract has been rendered impossible to perform. The contract however does not become

void entirely. The parties are only discharged from the futuristic obligations they would have incurred under the contract. This means that obligations which are due before the emergence of the impossible situation remain valid. The defaulting party may therefore be liable for a breach of a contract for the non-performance of those obligations.

The case of Taylor v.

Caldwell bordered on a contract by the parties for the hiring of a particular music hall for four days. A week before the concert ensued, the hall was raged down by fire and the plaintiff instituted an action against the hall owners for failing to provide them with a hall for their concert. Within the contract there was no express provision which made room for such a contingency. The court then espoused the implied condition theory which was to the effect that notwithstanding the fact that the parties had no express term in the contract to cater for such an event as had arisen (the burning down of the music hall), the court will imply a term into the contract. The term implied will be to the effect that if the parties at the time of the contract had anticipated this event, they would have provided in their contract that upon its happening, the obligations in the contract would be discharged. As time went on, the implied term theory which forms the basis for the doctrine of frustration was criticised heavily and was construed as being fictitious. The courts have now held that they will apply frustration of contracts on the grounds that it is a just and reasonable approach to

new situations arising which are beyond the parties.

E S T A B L I S H I N G THE DOCTRINE OF FRUSTRATION It is argued, albeit established in law that the decision in Taylor v. Caldwell espoused the newer and friendlier doctrine of Frustration of Contracts.

This paved way for a fresh regime in contract law. A party can successfully plead frustration therefore by establishing all the four main factors namely the presence of a supervening event, the impossibility of the party to the contract to perform its contractual obligations, the un-foreseeability of the event and the lack of fault on the part of the complaining party.

The frustration of a contract will ensue where there has been a supervening event.

Any supervening event a party alludes to must have occurred after the parties entered into the contract.

Here, the nature, scope and the obligations to be performed under the contract must be considered by the court or the parties to ascertain whether the obligation prevented from being performed by the supervening event is one which is fundamental under the contract such that its non-performance renders the contract redundant or whether the obligation is just a trivial one. Where the obligation in question is one which is merely ancillary to the contract, the presence of a supervening event shall not be enough to frustrate the performance of the contract.

In law, a supervening event is said to be any event that changes the circumstances of

performance of the contract so significantly that the parties are unable to perform the contract. Invariably, an event such as a war or a state of emergency, depending on the exact nature of the emergency and the nature of the contract may be deemed a supervening event.

Secondly, the contract must have been rendered impossible to perform. The impossibility to perform the contract ensues where the contract at the time of the supervening event has become radically or fundamentally different from what the parties contracted at the inception of the contract. Also, the mere fact of a contract being rendered unprofitable, or expenses under the contract rising at a super-normal rate or loss of commercial viability is no reason to deem that contract impossible to perform. Where there is an unexpected change in the economic situation in the country, it must be shown that the situation has rendered the contract radically different from what the parties anticipated at the beginning. Failure to prove this therefore means that the doctrine of frustration cannot be applied. The threshold of establishing this factor is quite high.

Next the foreseen or foreseeable risks involved in the contract must be considered. It must be established by the party complaining of the impossibility to perform that contract, that the event being complained of was not one which was within the reasonable contemplation of the parties at the time of the contract. The event must be totally unforeseen by the contractual parties.

The last factor to be established is that on fault and self-induced frustration. The supervening act complained of should not have been induced by a party to the contract.

Frustration can only arise when the event in question is one which is beyond and out of the control of the parties. In the circumstance, where the act complained of was caused by a party to the contract, an attempt to invoke the frustration doctrine will not hold.

To be continued…

F E AT U R E

20 MONDAY APRIL 27, 2020

THEBUSINESS24ONLINE.NET

Attitude Inoculation: A pearl in the mouth of the coronavirus

BY PROF. KWESI AMPONSAH-TAWIAH, UGBS The fight against the corona virus has proven to be a tall hurdle as countries struggle to contain the global scourge.

In Ghana, the figures keep soaring as the government tries all means to arrest the fast paced virus. As of 24th April 2020, there were 1279 confirm cases with 10 deaths in the country according to data from the Ghana Health Service.

The enormity of the challenge posed by the pandemic has led to governments across the globe introducing some radical measures in their bid to achieve dramatic results.

Some of these measures have completely altered our way of life, introducing new normative lifestyles and heightening our alertness to hygiene; Given that the virus spreads through openings such as the nose, eyes and mouth, good personal hygiene is highly recommended together with other preventive measures to limit the spread.

The hygiene culture and the economic strength of African countries has led many to predict a much harder and devastating effect of the pandemic on the continent. Considering the ruinous impact malaria has had on Africans due to poor and negative attitudes toward hygiene, the above prediction cannot be faulted.

In 16 of the 54 countries in Africa sanitation coverage is less than 25 per cent.

Such is the nature of risk African nations may be facing during this time of a global pandemic which thrives under unhygienic conditions. A country like Sweden is said to be making a head way in controlling the spread due to its hygiene culture among other Preventive measures.

In 2017, David Duncan the Chief of Water Sanitation and Hygiene (WASH ), UNICEF declared Ghana as the lowest ranked in sanitation levels among all lower and middle income countries.

The designation of Ghana as the lowest ranked in sanitation become more comprehensible when one examines the sanitation coverage of Ghana. In Ghana, only 15% of the population have access to

Kwesi Amponsah-Tawiah

good sanitation, with 1 out of 5 people practicing hand washing in the country.

The sanitation situation of the country becomes grimmer when one narrows down to the more deprived communities like the slums.

Ghana recorded its first case of the virus on 12th March 2020. Since then the government has implemented various measures to hinder the spread of the virus in the country. On 15th March, 2020, the President announced in his second COVID-19 update the implementation of measures which included a ban on all social gathering, the closure of educational institutions among others.

These measures were later followed by a partial lockdown which was introduced on Monday, 30th March. The lockdown imposed a restriction on movement of persons in the Greater Accra Metropolitan Area, the Greater Kumasi Metropolis, the Tema Metropolis and the Kasoa area, for a period of three weeks which was brought to a halt on the 19th of April, 2020.

The lifting of the lockdown has generated criticism among sections of Ghanaians with some citing political expediency and others attributing it to the fear of “positive” defiance by some citizens as the lockdown brought untold hardships.

These allegations and others have been denied by the Minister of Information Mr. Kojo Oppong Nkrumah. He claims the decision to lift the lockdown was based on data and science. As a researcher

I humbly ask; “did the scientific consideration, also consider the impact of the ongoing education with respect to personal hygiene and other preventive measures being undertaken by various stakeholders on attitudinal change among Ghanaians? The decision to lift the lockdown should not only be a matter of biology but also a matter of psychology and sociology.

Perhaps some data on attitudinal change would have provided some comfort to the critics that there has been a new hygiene culture among Ghanaians, which is much needed to slow down the spread.

Most Ghanaians were/ are gradually internalizing and imbibing the values of personal hygiene, which was further being reinforced by the lockdown. The suspension of the lockdown may have been abrupt and thus inadequate for a proper inoculation of the attitude of Ghanaians toward personal hygiene and social distancing. As a much longer period may be suited to properly inoculate the general public attitude toward personal hygiene among others.

The jubilation that greeted the announcement of the lifting of the lock-down in some communities, was no different from that which happens during the Homowo (hooting at hunger) festival of the Gas. Perhaps, the lifting of the lockdown signaled the end to COVID-19, which called for a hoot at the virus. In other communities it was akin to the celebration of the Aboakyer (Arresting the beast) festival. Perhaps

it signaled to them that the virus has been captured and they were free to “dirty” themselves. Indeed, all the protocols to be observed during this period of the pandemic including the hygiene protocols were broken on the day of the suspension. At the market places attitudes have not changed markedly, waste are being disposed indiscriminately and the “hustlers” living their lives recklessly without recourse to the hygiene protocols.

Perhaps, the fighting instinct in man in the face of adversity playing a dominant role as oppose to the fleeing. Is it the case of the inoculation vaccine failing or the dose not properly administered?

COVID-19 presents a good opportunity for a nationwide scheme aimed at inoculating the public against insanitary care and promoting personal hygiene.

This may be the right time to revisit the topic of sanitation with different perspectives, in this case with focus on applying psychological principles to immunize the Ghanaian citizen against current and future threats.

A quick examination of the behavior of Ghanaians prior to the pandemic toward sanitation and the nature of ongoing education during this pandemic will provide little to argue otherwise. The average Ghanaian is not well equipped to resist risky behavior or disinformation and therefore needs a longer period of education and experience to be inoculated.

COVID-19 provides that environment for the education and experience, which are the needed vaccines for inoculation against insanitary conditions and the promotion of personal hygiene. Attitude inoculation has been likened to how antibodies work by developing biological resistant processes within an individual thereby strengthening the immune system. It helps one to develop a persuasion resistance, thereby strengthening a person’s attitude and belief by immunizing the person against any future argument capable of altering the person’s behavior toward exhibition of unwanted behavior in the future. This mechanism is a very strong tool which has been utilize in protecting against substance abuse, and teenage

pregnancy.

There are evidence that indicate sizable correlations exist between attitude and behavior. It has been found that when factors such as internal consistency of the attitude, the temporal stability of the attitude and the certainty with which the attitude was held are present, they tend to impact behavior. This shows that a prolonged, consistent and continuous education and environment is needed to help in the assimilation, identification, inculcation and subsequent inoculation of attitudes to engender the right behaviors. A well planned and executed inoculation exercise during this period could enable the Ghanaian populace to develop a stable attitude with a high degree of consistency with their behaviors. Thus, a great degree of confidence can be established on the ability of the citizenry to protect themselves through the systems, structures, policies and above all knowledge provided during this period of COVID-19 to generate an enduring attitude capable of fighting against insanitary conditions and promoting Personal hygiene.

The hygiene protocols associated with COVID-19 need be sustained even after the exit of the pandemic to fortify the country against other infestations emanating from insanitary conditions and poor personal hygiene.

In a country where a whooping amount of $290 million gets spent annually on sanitation, the government is encouraged to seize the opportunity presented by the global pandemic to put in place systems, structures and policies to ensure a fundamental rethinking among the citizenry in respect of personal hygiene and improved sanitary care.

Similarly, there should be a radical redesign of processes and practices that will ensure a more enduring and dramatic improvement in the hygiene and sanitary related attitudes of the citizens.

Kwesi Amponsah-Tawiah, PhD is an Associate Professor of Organizational Development, an applied psychologist and the Head, Department of Organization &HRM, University of Ghana Business School. E: Kamponsah-tawiah@ug.edu.gh. T: +233(0)546238672

THEBUSINESS24ONLINE.NET

MONDAY APRIL 27, 2020

21

22 MONDAY APRIL 27, 2020

THEBUSINESS24ONLINE.NET

THEBUSINESS24ONLINE.NET

MONDAY APRIL 27, 2020

23