Business24 Newspaper 9th April, 2021 by Business24 Online

FRIDAY APRIL 9, 2021

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NO. B24 / 180 | NEWS FOR BUSINESS LEADERS

Stock market bull run lifts investor confidence

FRIDAY APRIL 9, 2021

Michael Ansah is the CEO of GIADEC

GIADEC vows to mine bauxite safely

he Ghana Integrated Aluminium Development Corporation (GIADEC), the body mandated to exploit the country’s vast bauxite resources, has affirmed its commitment to responsible and sustainable development of the bauxite industry. Cont’d on page 3

CalBank to leverage its digital offerings to drive sustained growth By Patrick Paintsil p_paintsil@hotmail.com

By Joshua Worlasi Amlanu macjosh1922@gmail.com

he Ghana Stock Exchange (GSE) is optimistic that the market’s current bull run will shore up investor confidence

as the economy continues to recover from the effects of the pandemic. The GSE, in its March 2021 report, said the market’s 13.99 percent return in the first quarter of the year placed it among the best performing

ECONOMIC INDICATORS EXCHANGE RATE (INT. RATE)

POLICY RATE

14.5% 14.77%

OVERALL FISCAL DEFICIT

11.4% OF GDP

AVERAGE PETROL & DIESEL PRICE:

4.2% GHC 5.13

Cont’d on page 2 INTERNATIONAL MARKET

US$1 = GHC 5.7606

GHANA REFERENCE RATE PROJECTED GDP GROWTH RATE

stock markets in Africa. This year’s positive returns follow three consecutive years of losses for stock investors. According to the report,

ndigenous publicly-listed lender CalBank Plc says it will exploit opportunities that have been offered by the coronavirus pandemic, including the strong uptake of digital products, to accelerate the pace of its digital transformation journey to drive efficiency and growth.

BRENT CRUDE $/BARREL NATURAL GAS $/MILLION BTUS GOLD $/TROY OUNCE

CORN $/BUSHEL

$543.75

COCOA $/METRIC TON

$123.55

COFFEE $/POUND:

Cont’d on page 3

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Editorial / News

FRIDAY APRIL 9, 2021

Editorial

Bauxite mining is slippery slope

hana’s decision to mine its bauxite resources has generated so much uproar. The pushback is premised on the fact that these resources lie beneath the lush forest resources of the Atewa Forest Reserve. In recent years, the country has lost some of its forest resources as a result of manmade activities such as mining, lumbering, and farming. These indiscriminate activities have robbed the country of the benefits these forests provide us. Among of these activities, mining has caused the most devastation, with water bodies which mostly take their sources from these forests heavily polluted and not fit for purpose. The Atewa Forest has largely escaped these degrading activities – to a large extent. Thus, the decision to mine

from that forest, no matter what assurances are given as to how sustainable it would be, is cause for great concern. The Ghana Integrated Aluminium Development Corporation (GIADEC), the body mandated to exploit the country’s vast bauxite resources, has reiterated its commitment to responsible and sustainable development of the bauxite industry. Michael Ansah, GIADEC’s Chief Executive Officer said in pursuit of transparency and accountability, GIADEC intends to keep every detail of its exploration, exploitation, and restoration activities within the public space to enable an appreciation of its strict adherence to international standards and regulations. No matter what modern mining methods are applied,

the invasion of Atewa threatens the biodiversity of the forest and every meaningful Ghanaian must be truly worried. Despite the assurances, Dr. Benjamin B. Campion, an academic at KNUST’s Faculty of Renewable Natural Resources explained that the dangers to the forest Atewa Forest Reserve include invasive alien species, climate change, tourism, habitat change, hunting, increasing wildlife trade, and legal and illegal logging. No amount of money got from the bauxite sale will make up for the biodiversity loss at Atewa. This paper would like to join other wellmeaning organisations against this development to urge the government to reconsider its position.

Stock market bull run lifts investor confidence Continued from cover

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200.9m shares valued at GH¢153.4m were traded in the first quarter, surpassing the transactions recorded in the same period of 2020, when 99.5m shares valued at GH¢76.85m exchanged hands. This represents an increase of 101.9 percent in volume and 99.6 percent in value traded during the period. A stockbroker with Fincap Securities, Geoffrey Maison, said the market was unsurprisingly spurred by a 32 percent price appreciation in MTN stocks. “MTN has been one of the major winners in the COVID era as digital payments, online meetings and e-commerce became the new norm. Investors were quick to price in MTN’s stellar 2020 performance, as seen in the price appreciation,” he explained. “Other factors contributing to the market’s performance are the general price gains observed in financial stocks, driven by the good performances of most financial institutions despite the pandemic. Except for Ecobank

Ekow Afedzie, Managing Director, Ghana Stock Exchange

Transnational Incorporated (ETI) and CalBank Plc, most financial stocks recorded price gains.” He added, “This clearly signals that investors are flocking back to the market following the cloud of uncertainty that hovered amidst the global pandemic. A similar trend is seen on the debt side of the market.” The Ghana Fixed Income Market, which trades public and private debt securities, also continued its sterling performance since the year began, recording a new all-time high traded volume of over 26bn in March, which broke the previous record volume of 18bn recorded at the end of January 2021. Liquidity in the first quarter remained high, with Government of Ghana bonds accounting for

the largest volume traded. The total volume of government and corporate securities traded in the first quarter—60bn—was a 167.8 percent increase over the same period in 2020. “With yields on government securities declining, I expect that we will continue to see an uptrend in the GSE Composite Index as investors seek higher returns and as pension fund managers, some of whom are over-invested in government securities, rebalance their portfolios in favour of the equity market,” Maison said. Market experts also project that the equities market will receive a boost from the government’s policy to permanently exempt capital gains on listed securities from taxes.

FRIDAY APRIL 9, 2021

GIADEC vows to mine bauxite safely Continued from cover Michael Ansah, GIADEC’s Chief Executive Officer, made the commitment at an environmental workshop held by the Corporation on Wednesday to update the media on the protective and sustainable plans and measures it was implementing to preserve the environment in its natural state. Explaining the rationale for the workshop, he said in pursuit of transparency and accountability, GIADEC intends to keep every detail of its exploration, exploitation and restoration activities within the public space to enable an appreciation of its strict adherence to international standards and regulations. The workshop saw facilitators briefing the media on three areas which are key to the mining of

bauxite in the allotted enclaves. The Director of Mines at the Environmental Protection Agency (EPA), Ransford Sekyi, outlined the processes for acquiring permits and commended GIADEC for duly following the procedural requirements of the EPA. He revealed that even though mining has not begun, GIADEC has consulted and involved the EPA in all of its preliminary activities. He further disclosed that the EPA has commissioned the

Kwame Nkrumah University of Science and Technology (KNUST) to conduct a baseline biodiversity study in the Atewa Forest Reserve, the outcome of which will address public concerns on preservation of the environment. Dr. Benjamin B. Campion, an academic at KNUST’s Faculty of Renewable Natural Resources who is leading the research, explained that the dangers to the forest Atewa Forest Reserve include invasive alien species,

climate change, tourism, habitat change, hunting, increasing wildlife trade, and legal and illegal logging. He added that the greatest threat to the forest may not be the entry of legal mining companies, who will preserve and restore the environment as required by regulation, but rather the activities of illegal miners, which have worsened over the years. Adwoa Paintsil, from the Water Resources Commission, walked participants through the permits needed to ensure water bodies are not negatively impacted by mining activities. She said once all relevant regulations are adhered to, river bodies such as Birim, Densu and Ayensu within the Atewa forest are not likely to be destroyed. She added that the Water Resources Commission will restrict any activity that becomes a threat to water and livelihoods in Atewa.

CalBank to leverage its digital offerings to drive sustained growth Continued from cover In furtherance of this ambition, the bank has already developed a three-year comprehensive strategic plan that seeks to accelerate its growth through technology, enhanced customer experience and the deepening of its retail offering. “We have embarked on a strategic transformational journey to pursue innovation, customercentricity and a complete digital transformation agenda over the next three years,” Managing Director Philip Owiredu said in the bank’s 2020 annual report released this week. The bank hopes to secure its operations with its digitalled strategy and to build an organisation that is resilient for sustained growth and returns. CalBank’s balance sheet size increased by 12.3 percent in 2020 from GH¢7.0bn to GH¢7.9bn, while customer deposits increased by 12.7 percent from approximately GH¢3.7bn to GH¢4.2bn. It ended the year with a capital adequacy ratio of 22.3 percent, above the revised statutory limit of 11.5 percent. The bank also grew its operating income by 15 percent over the

prior year, from GH¢587.8m to GH¢675.8m. Profit after tax stood at GH¢207m in 2020, an increase of 18.8 percent over the 2019 outturn of GH¢174.3m. On the back of this growth, the directors have recommended a dividend per share of 11 pesewas, up from 8.9 pesewas in 2019. According to Mr. Owiredu, the bank’s performance reflects a strong, resilient business which delivered strong topline earnings growth but was negatively impacted by an extraordinarily challenging operating environment. “Our strong capital and liquidity positions going into the crisis enabled us to continue on our strategic pathway to strengthen the core of the bank, accelerate our digitisation drive, reduce risk and be well positioned to confront future challenges.” With uncertainties still hovering around the banking industry, CalBank said it remains committed to working with both individual and corporate clients to find best-fit banking solutions to sustain growth as the sector recovers from the pandemic. “As we look ahead, we are optimistic that your bank will continue on its path of healthy

Managing Director of CalBank Plc Mr. Philip Owiredu

and sustained profitability growth as demonstrated by the commitment of staff in supporting

our customers and driving our growth,” Mr. Owiredu added in his message to shareholders.

FRIDAY APRIL 9, 2021

News

FRIDAY APRIL 9, 2021

Covid-19 stimulus for athletes extended to June By Eugene Davis ugendavis@gmail.com

he CEO of the Youth Employment Agency (YEA), Justin Koduah Frimpong, says his outfit intends to prolong its relationship with the National Sports Authority (NSA), the country’s sports regulator.

He said the NSA has been exemplary and distinguished itself in the management of a GH₵3m stimulus package provided by YEA to enable athletes get through the economic hardship caused by the Covid-19 pandemic. He was speaking at the signing of a Memorandum of Understanding (MOU) with the NSA to extend the

stimulus package given to athletes for a further six months, to June 2021. The stimulus is in the form of a monthly allowance of GH₵500 each for 1,000 athletes under YEA’s Youth in Elite Sports module. Mr. Koduah Frimpong said 500 of the athletes will come from the

Ghana Football Association (GFA), while 400 and 100 beneficiaries will come from the Ghana Olympic Committee (GOC) and National Paralympic Committee (NPC) respectively. “The YEA started this programme to support athletes financially who have been hardly hit by the Covid-19 pandemic in the country, and this has been a relief to the beneficiaries,” he added. Professor Peter Twumasi, the Director-General of the NSA, lauded the initiative and said the list of beneficiaries will be reviewed to exclude those who have found employment. On his part, the Minister of Youth and Sports, Mustapha Ussif, expressed optimism that Ghanaian athletes will excel and win laurels at the Olympic and Paralympic Games in Tokyo, Japan, this year. He appealed to YEA to consider making the module a permanent one to complement the work of the NSA, while advising the beneficiaries to focus on their training to represent the country successfully on the international front.

GPHA to introduce additional e-payment platform

he Ghana Ports and Harbours Authority (GPHA) is to introduce an additional e-payment system to enhance cargo clearing at the ports. Mrs Esther Gyebi-Donkor, General Manager, Marketing and Corporate Affairs at the GPHA, said the Port Authority had created an e-payment platform to allow clients to do transactions through mobile money, visa and Mastercards. Mrs Gyebi-Donkor noted that the move was part of efforts to increase automation at the Ports and make doing business faster, easy, secure and convenient. She said the platform was piloted on some port clients and expected to be rolled out soon. The mobile application would also afford clients the opportunity to easily validate invoices and calculate port charges. Touching on cargo clearance processes, she said even though Ghana was a little late in fully implementing the Single Window System, it brought remarkable successes and made the country’s seaports efficient. She said the port automation, including the Paperless Port

clearance process, and the Integrated Customs Management System (ICUMS), had streamlined the activities of statutory agencies operating in the clearance chain and impacted positively on the cost of doing business at the ports. Mrs Gyebi-Donkor said the automation had also reduced

the clearance time, accessing of invoices by customers, and paying and taking delivery of cargoes. She said automation had helped in the reduction of falsification of documents through system integrations with other stakeholders which led to an increase in revenue.

She also commended the freight forwarding fraternity for giving the needed feedback on the port clearance system which she said contributed to making Ghana’s ports more efficient. GNA

FRIDAY APRIL 9, 2021

International

FRIDAY APRIL 9, 2021

IMF warns of ‘divergent’ recovery

rospects for economic recovery vary starkly across regions and between countries despite the world economy emerging from the worst phase of the Covid-19 pandemic, the International Monetary Fund has said. Fund chief economist Gita Gopinath said the IMF has upgraded its 2021 global growth projection by 0.5 percentage points to 6%, but warned a “lost year” of development will be felt more by some than others. Poorer countries are expected to take a larger hit to their growth between 2020 and 2024 than advanced economies, she said. “These divergent recovery paths are likely to create wider gaps in living standards across countries compared to pre-pandemic expectations,” Gopinath wrote in a piece for the IMF published alongside the updated projections. “Such losses are reversing gains in poverty reduction, with an additional 95 million people expected to have entered the ranks of the extreme poor in 2020 compared with pre-pandemic

projections.” The IMF projects low-income countries will lose an average of 5.7% of per capita GDP by 2024, compared to 4.7% in emerging markets and 2.3% in advanced economies. “Uneven recoveries are also occurring within countries as young and lower-skilled workers remain more heavily affected,” Gopinath added. “Women have also suffered

more, especially in emerging market and developing economies.” Gopinath said there is an “increasingly visible” way out of the crisis, thanks largely to the continuing rollout of vaccines, as well as additional fiscal support in large economies, especially the US. She said the economic collapse last year “could have been three times worse” without the $16trn

in fiscal support put in place by governments. But the emergency is far from over, she stressed, urging policymakers to continue to support their economies. In light of the more limited fiscal wiggle-room and higher debt levels than before the pandemic began, Gopinath said governments should begin to better target support measures “to leave space for prolonged support if needed”. “Right now, the emphasis should be on escaping the health crisis by prioritising healthcare spending – on vaccinations, treatments and healthcare infrastructure,” she said. “Fiscal support should be well targeted to affected households and firms.” As the recovery progresses, she suggested worker retention measures should be scaled back and more emphasis should be put on reallocating workers, through investing in reskilling or hiring subsidies. Publicfinancefocus.org

U.S. weekly jobless claims rise again, but labor market will result in a solid further 728,000 in the prior week. Data recovery gaining steam advance in payrolls in the April for the prior week was revised to

he number of Americans filing new claims for unemployment benefits unexpectedly rose last week, but the increase likely understated the rapidly improving labor market conditions as more parts of the economy reopen and fiscal stimulus kicks in. The second straight weekly increase in claims reported by the

Labor Department on Thursday was at odds with reports this month showing the economy created 916,000 jobs in March, the most in seven months, and job openings increased to a two-year high in February. Households have also been upbeat in their assessment of the labor market. “Our belief is that continued moves to reopen the economy

jobs report and that the claims data are likely not capturing the pace of improvement in the labor market,” said Conrad DeQuadros, senior economic advisor at Brean Capital in New York. Initial claims for state unemployment benefits increased 16,000 to a seasonally adjusted 744,000 for the week ended April 3 compared to

show 9,000 more applications received than previously reported. Economists polled by Reuters had forecast 680,000 applications for the latest week. Some speculated that spring break-related school closings, the Easter holiday and churn in some industries were behind the surprise rise. Others believed the unprecedented surge in claims in March 2020, when mandatory closures of non-essential businesses were enforced across many states to slow the first wave of COVID-19 infections, was making it difficult to adjust the data for seasonal fluctuations. “We suspect that the seasonal adjustment process is the main culprit behind the confounding volatility in claims data in recent weeks as the economy passed the one-year anniversary of the lockdowns from last spring,” said Michael Gapen, chief U.S. economist at Barclays in New York. Reuters

FRIDAY APRIL 9, 2021

Feature

FRIDAY APRIL 9, 2021

Why would anyone want to be President?

By Elizabeth Drew

ore often than anyone might think, ample grounds exist for wondering why anyone would want to be president of the United States. Yes, there’s the glory of being elected to occupy the country’s most powerful office, hearing “Hail to the Chief,” receiving military salutes, and being called “Mr. President.” One presides over elegant state dinners. One never has to wait in line for a tee time. Still, time and again, we see presidential hair turn white ( Joe Biden’s hair, of course, has already done so, but the strain of the office will turn up in some way). The sources of that strain are clear: best laid plans go awry; unpleasant surprises lurk around every corner. At its start, Biden’s administration appeared to be a model of efficiency, especially compared to Donald Trump’s shambolic tenure. Even with a truncated transition – one result of Trump’s preposterous, and ruinous, insistence that he had won the election – Biden and his top aides seemed well prepared to govern. Biden’s heavily guarded inauguration – amidst tension lingering from the January 6 attack on the Capitol – went off smoothly. Only hours later he signed 17 Executive Orders and issued directives aimed at reversing signature Trump policies, for example halting construction of the border wall. Biden’s first legislative as well as executive priority was to get a grip on the out-of-control COVID-19 pandemic. Trump’s mishandling of the health crisis, some experts believe, caused hundreds of thousands of Americans to die unnecessarily. Biden’s opening acts, which

included reversing Trump’s withdrawal from multinational organizations as well as implementing environmental and equal rights policies, went further than any other modern president in undoing his predecessor’s policies. An affable, accessible figure, Biden was proving himself tougher than most people had anticipated. He kept up his calls for bipartisanship, but if the Republicans didn’t intend to work with him, which there was reason to assume that they wouldn’t, Biden demonstrated that he was prepared to push on without them. The Trumpified Republicans, having become more partisan than ever, even oppose an expert proposal to beef up the clearly inadequate Capitol Police force. Some Trumpians insisted that the January 6 riot on Capitol Hill, set off by Trump and ending in the death of five people, was no big deal. By mid-February, the widespread consensus in Washington – among those not caught up in the Trump cult – was that Biden “hadn’t put a foot wrong.” But then his seemingly enchanted presidency was hit by a tsunami of challenges. Short of continuing Trump’s practices, there was little Biden could do to prevent word from spreading throughout Central America and Mexico that his administration would be more amenable toward immigrants. By early April, the number of border crossings had zoomed to the highest level in 15 years and included record numbers of teenagers and children without parents, overwhelming the government’s capacity for taking care of them. Biden, in rare circumlocution and despite his sworn intention to

run a transparent administration, affected that this wasn’t a crisis and wasn’t very different from what had happened every year at about this time. In another rare misstep, his administration has been secretive about conditions in some of the border refugee camps. Immigration has proven an insoluble issue politically in the US for a long time, and Republicans leapt at the opportunity to embarrass Biden about it. His appointment of Vice President Kamala Harris to head the effort to reduce immigration numbers was a mixed honor. Harris’s assignment is the “root causes” approach – figure out why so many people from El Salvador, Guatemala, and Honduras want to leave their homes, or to send their children, on the highly dangerous trek northward. The root causes are believed to be corrupt governments, lousy economies, gang violence, and climate change – none of them conducive to a near-term fix. The Biden administration also hadn’t anticipated the reappearance of yet another stubborn problem, the easy availability of guns. But two mass shootings within a week in late March in Atlanta and then Boulder, Colorado, forced the issue back onto the agenda. However, gun control is far more popular with the public than with the elected politicians in Washington, who still fear the power of the National Rifle Association (NRA), despite it being embroiled in legal challenges. What’s changed in recent years is the growing power of advocates of gun control. With each mass slaughter these advocates tell themselves that this time they have a real chance. They are saying that now. The most popular

proposal is to expand background checks on gun buyers; thing is, the Boulder shooter had passed a background test. Biden has come out for, among other things, a renewal of an assault weapons ban, but he isn’t allowing this issue to get in the way of other priorities. Biden’s highest priority now is his $2 trillion-plus infrastructure program. I think that Biden’s decision to “go big” on this as well as the preceding nearly $2 trillion pandemic rescue plan reflects in part a subterranean rivalry between Biden and Barack Obama: Obama was cautious, and Biden, once his loyal lieutenant, is deliberately being bold. Obama compromised with Republicans, who opposed the proposals, anyway. Biden’s concept of infrastructure is generous, to say the least: Transportation Secretary Pete Buttigieg defines it as “the foundation that makes it possible for Americans to thrive.” The Biden program goes well beyond the old roads-andbridges-and-water concept of infrastructure – in actuality a small portion of the plan – to include among other things climate change and in-home care for the elderly. A second part, covering schools and affordable housing, is to be proposed later. The humongous program and taxes to pay for it face opposition in both parties, but a parliamentary ruling that it can be passed in the Senate with 50 votes with Harris breaking the tie will help Biden enormously. Some presidents indulge in the “Mount Rushmore syndrome” making an obvious effort to achieve greatness. Normally softspoken and apparently modest Biden is making his own bid for immortality.

FRIDAY APRIL 9, 2021

Feature

FRIDAY APRIL 9, 2021

Ghana’s Cybersecurity Act at a glance

By Mokrane Sabri

hana’s Cybersecurity Act, 2020 (Act 1038) was passed by the Parliament of Ghana on 6th November 2020 and assented by President AkufoAddo into law on 29th December 2020. It is a 68-page document made up of 100 sections and 3 schedules. The sections are grouped into 18 different subject headings. This act has become necessary because of the rapid digitalization of the Ghanaian economy, coupled with the high rate of cyber-crimes and other cybersecurity incidents in the country. The act will promote the development of cybersecurity and regulate cybersecurity activities in Ghana. It focuses on the protection of Ghana’s Critical Information Infrastructure. This article provides key highlights and issues of interest from the act and does not seek to interpret the act. Key highlights from Act 1038 The act applies to all cybersecurity activities in Ghana. It establishes the Cyber Security Authority (Authority) as a body corporate. The National Cyber Security Centre, therefore, transitions into the Cyber Security Authority. Governance of the Authority The act establishes an 11-member board that governs the Authority. It also establishes a Joint Cybersecurity Committee made up of 18 members across different ministries, departments, and agencies. The Authority is headed by a DirectorGeneral, who is appointed by the President. Critical Information Infrastructure (CII)

A computer system or network may be designated or withdrawn as a CII by “the Minister”. The Authority is required to register all CIIs and inspect or audit them periodically. The act also spells out the duties of owners of CII and prescribes stringent punishments for attempting to or gaining unauthorized access to CII.

Online protection

Cybersecurity incident reporting

Investigatory powers

The act establishes national and sectoral computer emergency response teams (CERT). Institutions are required to report cybersecurity incidents to the relevant sectoral or national CERT within 24 hours after detecting the incident. Licensing, accreditation, and certification Per this act, cybersecurity service providers can only operate upon obtaining a licence from the Authority. The Authority may suspend or revoke the licence of a cybersecurity service provider based on the defined conditions in the act. The Authority is also responsible for accrediting cybersecurity professionals and practitioners, as well as certifying cybersecurity products and technology solutions. Cybersecurity standards, enforcement, and education The Authority is required to develop, establish and adopt cybersecurity standards for education, skills development, hardware/software engineering, governance, risk management, research and development, and practitioners. It is also required to enforce these standards and monitor compliance; promote public awareness and education on cybersecurity matters.

The act protects children against exposure of indecent image, sexual abuse, cyberstalking, and sexual extortion. It also protects sexual partners on issues of non-consensual sharing of sexual images/videos and threats to distribute sexual images/videos.

Investigative Officers may apply ex-parte to the high court for a production order to collect subscriber information or for an interception warrant to collect or record traffic/content data. The court may grant these applications based on the defined conditions in the act. The Authority may request a service provider to install an interception system to enforce interception warrants issued by a court. Industry forum The act establishes an industry forum for discussing cybersecurity matters of interest. The forum may prepare a voluntary industry code in line with the requirements of the act. Miscellaneous provisions The Authority may issue directives to owners of CII and service providers and may request them to furnish it with information that will help in improving the cybersecurity of Ghana. It may also by a court order, authorise a service provider to block, filter, or remove illegal content and phone numbers associated with malicious cyber activities. Public and private institutions are required to co-operate with the Authority in safeguarding Ghana’s cyberspace. Penalties for non-compliance

Any person or organization that fails to comply with the various provisions of the act commits an offence and can be convicted to fines between 250 to 50,000 penalty units (GHS 3,000 to GHS 600,000), or to a term of imprisonment between 6 months to 25 years, or both. Conclusion It is very important and incumbent on cybersecurity professionals, cybersecurity service providers, legal practitioners, owners of CII, compliance professionals, and the general public to fully familiarize themselves with the act. Ignorantia legis neminem excusat (Ignorance of the law is not an excuse). I implore the Authority to fully discharge its functions under this act in order to safeguard Ghana’s CII in particular and its cyberspace as a whole. I also implore the state to provide the Authority with all the needed resources, logistics, and support to perform its functions effectively and efficiently. It will be extremely ungrateful on my part to end this article without acknowledging the good works of key stakeholders who contributed tirelessly to the enactment of this act. On behalf of my “fellow Ghanaians”, we are grateful to the Ministry of Communications, National Cyber Security Centre, Consultants, Parliament of Ghana, Attorney General’s department, and the President of Ghana for this landmark achievement. Author Sherrif Issah ( IT GRC Consultant | PCI-QSA | Trainer @ Digital Jewels Ltd., and Editorial Board Member, Institute of ICT Professionals Ghana) For comments, contact author mysherrif@gmail.com | Mobile: +233243835912

FRIDAY APRIL 9, 2021

Feature

FRIDAY APRIL 9, 2021

Focusing on Africa’s Growth and the potential of the Blue Economy

By Mokrane Sabri

frica is a complex continent. She is an eclectic mix of authoritarian regimes — where leaders have been in power for many decades; countries that are attempting to make their way towards democracy — even if progress is incremental and slow; and others that have had a stronger semblance of democracy for many years — though in honesty they are still trying to find their feet. As beautiful as Africa is, she is a continent scarred by war, tainted by corruption, and in many instances lacking in transparency. For years there have been numerous attempts to bring the continent together to create a continent-wide common market — a free trade area where all can benefit, but the attempts have yet to gain serious traction. For a cohesive effort, you need common understanding, and the ability to find common ground, so that you can make decisions for the greater good of the continent, rather than just your own country. With such diverse politics and governance, however, that’s not easy to achieve. It is one of the reasons there are so many regional economic communities, and why so many countries belong to more than one. There are eight recognised by the African Union, and a further seven that they don’t recognise., and overlaps occur in each. So far, the most successful attempt at uniting sub-Saharan Africa has been the African Continental Free Trade Area (AfCFTA), which started trading on 1 January 2021. Focusing on growth AfCFTA presents enormous opportunities for Intra-African trade on the continent. It is about driving the continent’s agenda for growth, rather than individual country’s designs. Intra-Africa trade has increased

to 15.4 percent over recent years, however, Asia and Europe are still the continent’s main trade partners. Greater focus needs to be placed on raising Africa’s percentage of world production which is currently 2,9 percent, and world trade which is currently 2,6 percent. Unfortunately, many African countries have low performance in trade facilitation indicators, scoring low in e-commerce; linear shipping connectivity; and doing business indicators. Lack of transparency and perceptions of corruption are also hindrances to intra, and inter-continental trade, and subSaharan Africa is currently the lowest performing region on Transparency International’s CPI 2020: SUB-SAHARAN AFRICA Report. Alternative approaches to revenue growth In order to achieve her full capacity, Africa needs to look at alternative approaches to increasing revenue. In 2008, the Seychelles president, James Michel, shifted his country’s strategic focus to what has become known as the Blue Economy. World Bank defines the Blue Economy as the sustainable use of ocean resources for economic growth, improved livelihoods, and jobs, while preserving the health of ocean ecosystem. While it’s a concept that has been embraced globally, on the continent where the idea was born, we’re falling far behind. The African Union (AU) has designated the years 2015-2025 as ‘The Decade of African Seas and Oceans’, and in February 2020, it launched the African Blue Economy Strategy in the Ethiopian capital Addis Abba. The Southern African Development Community (SADC), the Common Market for Eastern and Southern Africa (COMESA), and the Indian Ocean Commission (IOC) also

recognise the potential of the Blue economy as a lever of socioeconomic development in their strategic documents. According to the United Nations’ policy handbook on Africa’s Blue Economy, maritime zones under Africa’s jurisdiction total about 13 million square kilometres, including territorial seas and Exclusive Economic Zones (EEZ) and approximately 6.5 million square kilometres for the continental shelf (for which countries have jurisdiction over only the seabed). The continent therefore has a vast ocean resource base that can contribute to sustainable development. In order to realize that sustainable development however, countries across the continent will need to collaborate, across borders, and sectors on a scale they have not previously achieved. The largest sectors of the current African aquatic and ocean-based economy are fisheries, aquaculture, tourism, transport, ports, coastal mining, and energy. Potential Major Hubs in Africa As PWC highlighted, African ports represent gateways for the continent’s commodity exports, but as countries grow and develop, ports are also essential for sustaining and improving more robust and diverse economic growth, through the import and export of manufactured goods and other products. In Strengthening Africa’s Gateways to Trade, PwC’s analysis showed that based on the degree of port centrality (shipping liner connectivity), the amount of trade passing through a port, and the size of the hinterland, Durban (South Africa), Abidjan (Cote d’Ivoire) and Mombasa (Kenya) are most likely to ultimately emerge as the major hubs in Southern Africa, West Africa and East Africa, respectively. The report stated that the

closest rivals to these ports are Lagos-Apapa (Nigeria) and Tema (Ghana) as alternatives to Abidjan, and Djibouti and to a lesser extent Dar es Salaam to Mombasa. Due to their better operational performance, both Lagos-Apapa and Tema pose significant challenges to Abidjan’s emergence as a hub, which might eventually be decided on factors such as on political stability, port performance and quality of inland connections. Improving port performance, could increase GDP by 2 percent. An efficient port reduces delays to shippers, reduces overall logistics costs, and improves reliability of goods in transit. Yet across Africa, investment in port infrastructure and expansion has slowed. Stability, security, and transparency are drivers of foreign investment African governments have the ability to significantly impact the investment environment, and investors will look to the way they are planning, regulating, owning, and operating their ports. They will also take the country’s stability, security, and perceived corruption levels into account. Experienced investors will certainly consider how individual governments have handled foreign inbound investment previously, and if there is not a favourable investment environment, it is not likely that inbound investment targets will be met. This is particularly relevant at a time when the continent is seeing a high rate of electionrelated violence, there is much questioning of the legitimacy of election results, and accusations of corruption abound. There are thirteen national elections due to take place in 2021, a third of which take place in the Horn of Africa.

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News

FRIDAY APRIL 9, 2021

European Union and UNIDO support Ghana cosmetics industry

he West African Competitiveness Program (WACOMP) funded by the European Union and implemented by the United Nations Industrial Development Organization (UNIDO) has launched a Wednesday a digital market hub dedicated to promote and market locally produced cosmetics products from Ghana in Accra. The ‘Ghana Cosmetics Cluster’ platform, designed and developed as part of implementation activities of the WACOMP – Ghana component which is cordinated by the Ministry of Trade and Industry as part of boosting the cosmetics and personal care industry in the country -- will serve as a market hub for SMEs in the cosmetics sector. The digital platform, which was launched in partnership with Association of Ghana Industries (AGI), will also support the cosmetics industry to establish clusters and networks to increase competitiveness.

Mr. Charles Kwame Sackey, Chief Technical Advisor of WACOMP –Ghana, commenting on the launch, said it is inspiring to see this collaborative effort between AGI and WACOMP Ghana to enhance global market access to natural cosmetics and personal care products and promote the competitiveness of the cosmetics sector in Ghana. “Ghana’s natural cosmetics products with support from

WACOMP have greatly improved in terms of quality and packaging hence deserve all the support to take advantage of the African Continental Free Trade Area (AfCFTA) opportunities and the international market,” he said Seth Twum –Akwaboah, Chief Executive Officer of AGI, expressed gratitude to the WACOMP-Ghana for its consistent support to the Association’s activities over the years and to the European Union

for their dedication of funds to support the growth of Ghanaian industries. “We are very much appreciative of the financial support from the EU and the unique implementation by UNIDO and MoTI through the WACOMP project to facilitate members’ businesses and to promote the quality of Ghanaian cosmetics products,” he said. Sandy Osei – Agyeman, the Chairman of the cosmetics sector of AGI and the CEO of Slid Industries Ltd, commended the Ghana cosmetics cluster team for making it much easier to boost the competitiveness of the sector and the products of its members. Johnson Opoku-Boateng, Head of the Business Development Unit of AGI, reiterated the importance of the Ghana cosmetic platform to boost the online presence of Ghana natural cosmetic products and encouraged all cosmetic producers of AGI and non-AGI members to take the needed steps to get their products on the platform.

Focusing on Africa’s Growth and the potential of the Blue Economy CONTINUED FROM PAGE 13 Djibouti, Benin and Chad all have their presidential elections in April 2021. Djibouti’s port is located on Africa’s East coast – nestled on the Horn of Africa between Berbera and Massawa. As a potential rival to Mobassa for an African hub, Djibouti’s ports have undergone some expansion in the past. The country has already benefitted from investment from China, using the capital for port and infrastructural investments. In fact, the state-owned China Merchant Group acquired a 23.5% stake in Djibouti port in 2008, and is also trying to get a 40% stake in Ethiopian Shipping and Logistics Enterprise (ESLSE). In order to continue patrolling the waters of East Africa and to protect its investment in Djibouti, China inaugurated its first overseas military base in 2017 alongside the bases of the United States, France, Italy, Spain, Germany, and Japan. World Bank’s Economic Transformation in Djibouti report highlights key measures for improving its appeal to foreign investors including: lowering the

cost of production factors, namely electricity, ICT, as well as labour costs, to raise competitiveness; further easing access to finance; levelling the playing field to enhance competition; and reforming the tax system to make it more equitable across firms. Enticing future foreign investment may prove difficult though, as investors will look to the past two years that DP World have spent in court attempting to secure a return on their investment in the Doraleh Container Terminal which the Djiboutian government seized in 2018. The action was found to be illegal by the London Court of International Arbitration and the High Court of England and Wales, however the Djiboutian Government has failed to abide by the many court rulings and restore DP World’s full rights under the concession agreement of 2006. Benin’s Contonou port is a city port was developed to assist landlocked countries like Mali, Niger and Burkino Faso. Rehabilitation of the port did help; however, it is still struggling to compete against nearby ports such as Tema, Lomé and Lagos,

just a few hours away, which have been expanded and upgraded more recently. Both Chad and Burkina Faso have their own warehouses to store goods at Contonou port. Considering the future It will be interesting to see the outcomes of all of 2021’s elections. Will the leadership remain the same, or if it will change, and if it does will it make a tangible difference in uplifting the countries that do bring in a new order? Will we see changes in strategic economic approaches this year, and will concrete steps be taken to grow each country’s Blue Economy? And will the initialising of the AfCFTA be the start of growth across the continent? World Bank states that the blue economy represents roughly 5.4 million jobs and generates a gross added value of almost €500 billion a year in Europe. Opportunities do abound in Africa, but it is as yet not nearly fully realised. What is needed is investment in improved governance to create a pipeline of investable opportunities that benefit both local and national

economies, which is backed up by an enabling environment for responsible private sector investment throughout the value chain. Just imagine what increased focus on Africa’s Blue Economy could do for the continent.

About the author Mr Mokrane SABRI is a Senior Trade Manager, a position he has held since April 2016. I am working in the shipping industry since 2008; He has specific skills in marketing, digital marketing, event industry, management and business development. He hold Bachelor’s in Business Administration/Paris Graduate School of Management (PGSM). Previously, he started working like Regional Director North Africa & Middle East / African Logistics Port Hub Association, trading as ALPHA Ports Limited, Dublin.

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Markets

FRIDAY APRIL 9, 2021

WEEKLY MARKET REVIEW FOR WEEK ENDING APRIL 1, 2021

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WEEKLY MARKET REVIEW FOR WEEK ENDING APRIL 1, 2021

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