Business24 Newspaper - August 14, 2020 by Business24 Online

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FRIDAY AUGUST 14, 2020

BoG alarmed by rising fraud involving bank staff Youth most concerned about jobs and school—survey A new Afrobarometer survey conducted by the Centre for Democratic Development (CDD) has revealed that unemployment and education continue to be the most important problem that young Ghanaians want the government to address. BY BENSON AFFUL

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The central bank wants banks to raise the pay of contract staff to curb their involvement in fraudulent activities

BY NII ANNERQUAYE ABBEY

he Bank of Ghana has expressed worry over the rising incidence of fraud committed by banks’ staff. In its 2019 Banking Industry Fraud Report, the central bank stated that while the overall number of fraud cases went up marginally, those committed by banks’ staff remained dominant. The report, released on Wednesday, said the total number of cases reported were 2,295, with 1,667 of them committed by banks’ staff, either permanently employed or on contract. “The alarming rate of involvement of bank staff

in the perpetration of fraud in the banking sector calls for significant reforms in the engagement, remuneration and disengagement processes of employees and contractual staff of financial institutions,” the report stated. According to the report, the dominant type of fraud committed by these staff—typically tellers, mobile bankers and other frontline staff—is the suppression of cash or deposits. In 2019, the total value of fraud cases in this category amounted to GH¢5m, out of which GH¢4m was never recovered by the financial institutions involved. >> MORE ON PAGE 2

Increased transport fares nudge July inflation to 11.4 percent ABDUL-RAHMAN SANI

U.S. supports Shea Parkland Restoration Initiative and women’s economic empowerment

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ECONOMIC INDICATORS *EXCHANGE RATE (INT. RATE)

USD$1 =GHC 5.6734*

*POLICY RATE

14.5%*

GHANA REFERENCE RATE

15.12%

OVERALL FISCAL DEFICIT

11.4 % OF GDP

PROJECTED GDP GROWTH RATE AVERAGE PETROL & DIESEL PRICE:

GHc 5.13*

INTERNATIONAL MARKET BRENT CRUDE $/BARREL NATURAL GAS $/MILLION BTUS GOLD $/TROY OUNCE CORN $/BUSHEL

>> MORE ON PAGE 5

0.9%

43.22 1.79 1,842.40 329.50

COCOA $/METRIC TON

1,562.00

COFFEE $/POUND:

$109.65

COPPER USD/T OZ.

220.15

SILVER $/TROY OUNCE:

17.07

NEWS/EDITORIAL

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EDITORIAL

Wash your hands 2

Cover your cough 3

Time to decisively tackle youth unemployment A recent Afrobarometer survey has empirically confirmed what we have all known over the past decade. The survey found that youth unemployment and education are the two key issues that young people want addressed Indeed, the study revealed that Job creation is first on Ghanaians’ list of priorities for additional spending to help young people, and citizens are willing to pay more taxes to fund programmes for youth development, the findings of the survey showed. The good news is that majority of Ghanaian adults (Six in 10 adults) are prepared to pay higher taxes to fund programmes to help the youth, while a similar proportion said job creation would be the highest priority if the government could increase its spending to help the youth. It must be said that while

the traditional state–citizen relationship remains crucial for service delivery, Africa’s youth should no longer be seen just as beneficiaries but rather as stakeholders who should be empowered to participate at the level of agenda setting and decision-making for Africa’s development. In other words, this relationship needs to transcend viewing youth as mere recipients of state services (such as education, health and employment) and instead ensure that young people participate meaningfully in social, political and economic life and are included in decision-making. On the education front, World Bank report warns that millions of young students in low and middle-income countries face the prospect of lost opportunity and lower wages because their

primary and secondary schools are failing to educate them to succeed in life. Meanwhile, the government since 2017 has embarked on a free Senior High School policy that has increased enrolment by 50 percent to 1.2m students in second-cycle institutions across the country. To get the best out of the policy, the Trades Union Congress, while commending government for its efforts in implementing the policy, said that the only way free Senior High School will pay for itself is to put beneficiary Ghanaians into productive work. Business24 believes that this is imperative to avoid creating a pool of disgruntled young people who may resort to violence and crime to make ends meet.

BoG alarmed by rising fraud involving bank staff Wear a mask Brought to you by

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

CONTINUED FROM COVER

Way forward The reported also highlighted other types of fraud which were reported to the Financial Stability Department of the central bank. These include cheque fraud, email/cyber fraud, impersonation, e-money fraud, and forgery. It said the fraudsters attempted stealing GH¢115.5m but were only successful in making away with GH¢33.4m, representing 29 percent. The bank recommended that to forestall future occurrences, contract or temporary staff of banks and specialised deposit-taking institutions must be adequately vetted by the police in order to avoid employing fraudsters in the industry. Also, the BoG tasked the financial institutions to review remuneration and working conditions of contract staff and mobile bankers and aligned these to that of permanent staff, since the former are often found to be involved in suppressing the value of cash and deposits.

“Staff of banks and specialised deposit-taking institutions, when undertaking transactions relating to special cheque-clearing, must be very diligent, since most cloned cheques come through that channel,” the report said. The central bank also expects consumers to be encouraged to use efficient electronic payment methods that keep an audit trail of fund movements, even as banks

and specialised deposit-taking institutions enforce directives and due diligence on over-the-counter payments. For the mobile telecommunication companies, the central bank encouraged them to enhance their registration and monitoring processes in order to significantly reduce the incidence of fraudulent call diversion, chip swaps and number porting.

FRIDAY AUGUST 14, 2020

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Youth most concerned about jobs and school—survey BY BENSON AFFUL

Job creation is first on Ghanaians’ list of priorities for additional spending to help young people, and citizens are willing to pay more taxes to fund programmes for youth development, the findings of the survey showed. Six in 10 adult Ghanaians of all ages said they would support higher taxes to fund programmes to help the youth, while a similar proportion said job creation would be the highest priority if the government could increase its spending to help the youth. With an allocation of over 6 percent of Gross Domestic Product (GDP), Ghana’s spending on education is among the highest in Africa. In spite of the relatively high levels of investment, experts argue that the sector is not living up to expectations as standards are deemed to have fallen to an alltime low. Spending on the sector, as happens in other sectors, has been found to be largely for

recurrent payments in wages and salaries, instead of for investment in infrastructure, teaching and learning aids. The state of education in the country, educationists argue, will

restrict its ability to transform the economy from middle-income with HIPC infrastructure, low total factor productivity and weak systems, to the status of a developed economy.

Already, employers complain about the poor quality of graduates at all levels of education – with some decidedly giving preference to Ghanaians who have schooled abroad. A World Bank report warns that millions of young students in low and middle-income countries face the prospect of lost opportunity and lower wages because their primary and secondary schools are failing to educate them to succeed in life. The report, dubbed “Facing Forward: Schooling with Learning in Africa”, asked the Ghanaian government to invest in quality pre-primary education, which is critical to developing noncognitive foundational skills. Meanwhile, the government since 2017 has embarked on a free Senior High School policy that has increased enrolment by 50 percent to 1.2m students in second-cycle institutions across the country.

Increased transport fares nudge July inflation to 11.4 percent BY ABDUL-RAHMAN SANI

The Ghana Statistical Service inflation recorded for the month of July rose to 11.4 percent largely on the account of an upward adjustment in transport fares. However, the usual contributor to inflation especially over the past six months since the pandemic struck, the food and non-alcoholic division, dropped by 0.5 percentage point against the previous month. The increase in the prices of diesel and petrol in July caused a 3.9 percentage-point jump in transport’s contribution to inflation, its biggest month-onmonth contribution since October 2019. “National year-on-year inflation for July 2020 was 11.4%. The month-on-month inflation rate of 0.5% seems to indicate that prices are increasing at pre-COVID-19 levels. With the exception of fuels, most product categories saw month-on-month inflation rates

comparable to the period October 2019 to March 2020, Government Statistician, Prof. Samuel Kobina Anim told reporters in Accra. The new figure meant that inflation has risen to its highest since the pandemic struck — also the highest since November 2017 when it was measured at 11.8 percent.

The food and non-alcoholic beverages division recorded a year-on-year inflation rate of 13.7 percent, 0.1 percentage point lower than in June 2020 (13.8 percent) and 1.4 percentage points lower than May 2020 (15.1 percent). Although Food declined slightly to contribute 53.0 percent to year-

on-year inflation, it remains the predominant driver of year-onyear inflation, despite contributing less in the last three months. Non-food inflation edged-up 0.5 percentage point to come in at 9.7 percent compared with the rate in June 2020.

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RTI law does not fully support fighting illicit financial flows Dr Stephen Manteaw, the Cochair of the Ghana Extractive Industry Transparency Initiative has noted that Ghana’s Right to Information (RTI) Law in its current form will not fully support efforts at countering illicit financial flows. He said the Law would have to be used together with other transparency legislations such as Beneficial Ownership, Open Contracting and the Petroleum Register to achieve its purpose. Dr Manteaw was speaking at a day’s media capacity building workshop in Accra by the Tax Justice Coalition, with sponsorship from Open Society Foundations (OSIWA) on the, “Beneficial Ownership (BO) and the RTI Law: what role and opportunities are there for journalists in curbing Illicit Financial Flow in Ghana.” He said the RTI had some exemptions that were not healthy to the implementation of the law, which included; information that affected the security of the State, Economic and any other interest and information on tax. Other exemptions are information relating to Cabinet, information relating to law enforcement and

public safety and information affecting international relations. He said with that, “I do not see the uniqueness of the RTI law in the fight against corruption in the country so we will continue to use the 1992 Constitution in addition to fight the menace.” Dr Manteaw said there were also concerns in the implementation of the law apart from the weaknesses identified earlier. On the BO, the Co-chair said secret ownership structures enabled some extractive companies to evade payment of tax and also hidden ownership posed problems for honest companies, as they did not know who they were doing business with. He said the risk of anonymity of ownership created wealth in the pockets of a few at the expense of advancing development to the benefit of the larger society. Dr Manteaw said, “Corporate anonymity facilitates a phenomenon known as capacity fight removing wealth from one nation and transferring that wealth to another.” Mr Vitus Azeem, Chairman Tax Justice Coalition who launched

the Financial Bleeding Register, said the register, in the form of a website would be used to compile malfeasance and corruption occurring in the country for the attention of the public. He commended journalists for efforts in educating the public on issues of taxation and Illicit Financial Flows (IFFs) in the country. Mr Bernard Anaba, Policy Analysts at the Ghana Tax Justice Coalition said the website also provided for Ghanaians a session to record any

issues on malfeasance. He said the workshop was expected to improve the understanding and participation of media practitioners on the issues of taxation, tracking and reporting of financial malfeasance, particularly to help curb the phenomenon of IFFs in Ghana. “It is to educate participants on new ways to fight corruption and IFFs by interacting and learning from each other,” Mr Anaba said. GNA

U.S. supports Shea Parkland Restoration Initiative and women’s economic empowerment The United States Government, through the U.S. Agency for International Development (USAID), and the Global Shea Alliance (GSA), Wednesday, launched the Action for Shea Parklands (ASP) initiative, under which 20,000 shea trees will be planted in Ghana this year. Spearheaded by GSA, the initiative seeks to promote, plant, and protect the shea parklands while advancing a shea industry commitment to plant 10 million trees across West Africa over the next 10 years. Ghana’s 20,000 trees for 2020 will be planted across the five northern regions. A press release issued by the United States Embassy, in Accra, and copied to the Ghana News Agency, said to commemorate the launch, Ambassador Stephanie S. Sullivan joined members of the Global Shea Alliance and women shea cooperative leaders to plant 50 shea seedlings in seedling bags. These would be transported to the Northern Region of Ghana for planting during the 2021 shea season. Ambassador Sullivan, the

release said, commended the project’s partners, stating, “Given the impact of the industry on improving incomes for women and their families, I’ve been excited to witness first-hand the enormous growth of the shea export industry in Ghana. “U.S. companies and consumers continue to play a key role in this growth, ensuring that the industry contributes to Ghana’s economic development while meeting the highest social and environmental standards.”

The initiative, the release said, also highlighted the importance of bolstering women’s economic development activities in Ghana. Shea is a primary source of livelihood for women living in northern Ghana. Togo and Benin, the release said, were also pilot countries for the ASP initiative. This month, 6,000 trees will be planted in northern Togo by 500 rural farmers, including 300 women.

The seedlings were acquired from a network of small community nurseries established in 2019. In Benin, the Fédération Nationale des Productrices d’amandes et de beurre de Karité du Bénin (FNPK), the umbrella of women cooperatives, launched the shea planting campaign as part of ASP in June 2020. The campaign, the release said, involved 400 women from the northern regions in Benin who planted 2,400 trees in July this year. In partnership with USAID, GSA is leading the industry’s sustainability effort. To date, the release said, 100,000 seedlings had been raised and 8,000 shea trees planted with private sector funding under the USAID-funded “Sustainable Shea Initiative” (SSI), a public-private partnership with GSA. “The SSI is an $18 million, fiveyear program that promotes the sustainable expansion of the shea industry in Ghana, Benin, Côte d’Ivoire, Togo, Mali, Nigeria, and Burkina Faso as well as increases the incomes of rural women, who form the backbone of the industry, “ the release explained. GNA

FRIDAY AUGUST 14, 2020

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COVID-19 pandemic has sent shockwaves throughout all economic sectors of the globe BY ROBERT ODURO

his pandemic has seen some economies struggle to stay on their feet due to the protocols instituted to reduce personto-person spread and thus reduce the number of cases and subsequent deaths from the virus spread. The oil industry, like all other industries, has been one of the hardest hit and has suffered its fair share of the shock on oil prices. The effect of the virus on fuel prices came in two folds - the demand side effect and the supply side effect. The demand shock, which is evident throughout the world, is mostly due to reduction in transportation and the closure of facilities around the world, which would have rather used petroleum products for production. The World Bank in an April report estimated that global demand for oil would drop by 9.3 million barrels per day in 2020. Furthermore, demand in April was estimated to be 29 million barrels per day lower than 2019 figures; while second quarter estimations stand at 23.1 million barrels lower than 2019 figures (IEA, 2020). The supply shock, on the other hand, was caused by the oversupply of oil due to the lifted restrictions for Organization of Petroleum Exporting Countries (OPEC ) and a price war between Saudi Arabia and Russia. This price war was initiated when OPEC countries decided to cut supply by 1.5million barrels per day until June when prices began to drop, with Non-OPEC states, such as Russia, also tasked to follow suit. However, Saudi went against the plan and the non-OPEC members retaliated by pumping more oil into the market leading to plummeting of oil prices (African Union, 2020). Though the COVID-19 spread was declared as a global pandemic on 11 March, 2020, the effect on the petroleum market had been evident on Brent and other price indices from midJanuary and eventually became worse in the succeeding months as more countries declared countrywide and local lockdown, leading to reduction in demand of petroleum products across the world. The price changes of crude or finished petroleum products, such as gasoline and gasoil, on the international market usually have a trickle-down effect on the price at which consumers purchase fuel for their individual and household usage (ex-pump price). However, the price at which individuals buy fuel differs from country to country based on different factors, such as the strength of the currency (Forex), import and export levels of oil, taxes in the build-up and subsidies. In Ghana, the ex-pump price is made

up of different taxes and levies, CIF or DES pricing, margining sharing (Distributors, Marketers and retail margins). Based on the changes in any of these, the price consumers pay for fuel is likely to change. Using gasoline price data between the months of January to June from trading economics, a comparison of the ex-pump price percentage variations between Ghana and other countries is elaborated. The data used was analysed using monthly averages for gasoline prices, and the percentage changes were then computed between succeeding months. The ex-pump comparison is done in two ways. Ghana is first compared against other oil producing countries such as US and Saudi Arabia; and then compared against other countries on different income levels. This is to give some context to the comparison. GLOBAL CRUDE PRICES The monthly average of the global crude prices for Brent crude as against the local gasoline prices in Ghana with the percentage changes between the months are shown in Table 1.1. The table shows that globally, the international oil prices saw a dip from the January average of around US$63.94 to the lowest point in the reference period of US$26.63 average in mid-April when the pandemic intensified. As the tension surrounding the pandemic is beginning to ease and countries are beginning to ease down restrictions, prices of crude are beginning to climb up once again as seen in the percentage differences from April to May (21.70%) and from May to June (25.79%). However, in Ghana the ex-pump price changes do not match the monthly price change on the international market perfectly. This can be attributed to the system of petroleum pricing. In Ghana, ex-pump price changes have a 16-day interval due to the structure of the pricing windows1 and changes on the international market might not reflect until the following month when marketers review their prices. AFRICAN COUNTRIES The percentage price increase in expump for six African countries for the first six months of 2020 are shown in Figure 2. The countries used in the comparison are South Africa (SA), Egypt, Nigeria, Zimbabwe and Kenya. From the figure, it can be seen that all countries had varying percentages of change in the ex-pump prices in the reference period. Between January and February, all the countries, except Nigeria, experienced a change in the ex-pump. Of the changes, South Africa and Zimbabwe experienced a price fall of 4.50% and 3.81% respectively, which was in line with the change in the international crude prices, while countries such as Ghana, Egypt and

Kenya had ex-pump prices increasing. All the countries experienced a percentage decrease in ex-pump between February and March, the largest drop in this period was noticed in Zimbabwe (40.00%) and the smallest drop was in Egypt (2.04%). A very important anomaly is the percentage change of ex-pump prices in Zimbabwe between March and April. Ex-pump prices increased by as high as 13.79% when all countries shown experienced a fall. This also came in a period when global Brent crude prices had fallen as much as 21.05%. In general, the changes in ex-pump in Ghana were very similar to that in Egypt and Kenya though some differences existed. Zimbabwe also had very high fluctuations in the percentage changes compared to other African countries. Egypt also had the smallest average change between the period averaging about 1.29% change between February and June. OIL PRODUCING COUNTRIES The percentage price variations of Ghana are compared to that of other oil producing countries such as the United States and Saudi Arabia. As shown in Figure 3, Ghana saw a percentage increase in ex-pump prices between January and February, which was similar to that of Saudi. However, the United States saw a drop within that same period similar to the global prices. In the following month all countries had a price decrease with Ghana experiencing the highest change of 15.84% as compared to that of the US (7.81%) and Saudi Arabia (1.79%). Ghana experienced an increase in ex-pump price in May-June after three periods of decrease. Ghana’s increase was greater than that of the US but less than that of Saudi Arabia. These variations show that Ghana and Saudi experienced similar variations in terms of direction of change although the percentage changes were different for different reference periods. LOW-INCOME COUNTRIES The variations between Ghana and Haiti are similar except in the FebruaryMarch period. In that period, while Ghana experienced a fall in its ex-pump prices by 15.84%, Haiti had an increase in ex-pump price of 3.28%. In general, Haiti and Ghana had different levels of prices. LOWER MIDDLE-INCOME COUNTRIES Ghana was compared to two other countries, who are in the same UN classification based on income levels as herself. The countries used in the comparison are Nigeria and Vietnam. In this comparison, Nigeria had no change in ex-pump prices between January and February as compared to Ghana’s increase while Vietnam had a fall in its ex-pump price. In the following month, all countries

experienced a percentage decrease in their ex-pump prices. For the periods April-May and May-June, Nigeria’s expump prices stayed constant at 0% change, while Vietnam continued its positive change trajectory. Overall, Vietnam had a percentage change movement similar to the global crude price while Nigeria had two periods of zero change. Also, in all cases except in March-April, Ghana had a higher absolute percent change as compared to Nigeria. UPPER MIDDLE-INCOME COUNTRIES In comparison to upper middle countries, Ghana experienced a price increase in the first period ( JanuaryFebruary) while the other countries saw a percentage reduction. In the second period, all the countries including Ghana, experienced a fall in ex-pump prices. The negative percentage change was the same for the third period in all the countries except for Indonesia, which experienced a 5.0% increase in ex-pump prices. In the May-June reference period, Ghana experienced a percentage increase in ex-pump prices higher than that of any other country in the sample and closer to the percentage change in global crude price. HIGH INCOME Lastly, Ghana was compared to some countries in the high-income level category. This comparison shows that Ghana’s ex-pump price variations had a similar outlook to those of these countries in the February-March period as they all experienced a drop in expump price similar to that of the global crude price. In the March-April period, Ghana again had a negative variation as all others except Canada in which price seemed to increase by 3.64%. In the final reference period (May-June) all the countries under review had an increase in expump price with Ghana experiencing the biggest leap of 26.76%. CONCLUSION In the face of producing more than 100,000 barrels of crude oil per day, Ghana continues to depend on imports of crude oil to meet its demand for petroleum products, which has risen exponentially as a result of increasing economic activities. Consequently, the country is exposed to the vagaries of a competitive international market for crude and petroleum products. The expump price variations that have so far been experienced in Ghana during the COVID-19 period have not been limited to Ghana. These variations have happened across the globe in different ways. Though the overall trend is similar across all countries reviewed, the amount of change and the speed of change, in reference to the global crude price changes, have been different.GNA

FRIDAY AUGUST 14, 2020

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A better alternative to Trump’s WeChat ban BY SHANG-JIN WEI

Shortly after US President Donald Trump issued an executive order effectively banning the Chineseowned social-media app TikTok, he issued a second order prohibiting “any transaction that is related to WeChat by any person … as identified by the Secretary of Commerce.” According to the White House, the WeChat ban – which will take effect on September 20 – is intended to protect Americans and visiting Chinese in the United States from violations of privacy by the Chinese government and to limit fake news from the Chinese government reaching Americans. But the ban is likely to be counterproductive, and there are better solutions to these problems. WeChat, owned by Tencent, a Chinese company listed on the Hong Kong Stock Exchange, is a widely used multipurpose app that combines messaging, social media, digital payments, and other functions. If Tencent’s founders, Pony (Huateng) Ma and four other partners, had built their company in the US, they would be celebrated in much the same way that Bill Gates, Jeff Bezos, and Elon Musk are. Chinese entrepreneurs likely have had to overcome much greater difficulties to succeed than their American counterparts. After all, funding for those without family wealth or political connections is scanter in China due to a less developed capital market. Property rights protection is weaker, and Chinese Internet users’ purchasing power is much lower than that of Americans. In 1998, when Tencent was founded, China’s per capita income was a mere $850 – less than 5% of the US level and less than 20% of the Mexican level that year. WeChat was introduced in 2011, and quickly grew to become China’s dominant social-media app. It is now a ubiquitous communications tool, used by young and old alike. Virtually every Chinese person with a smartphone has a WeChat account, which they use to stay in touch with friends, family, and work colleagues, and to pay restaurant, utility, and grocery bills. Even the US Embassy in China has an official WeChat profile, where it broadcasts US government information and provides services to US citizens living and working in China. US residents with family members or friends in China are also likely to use WeChat when they communicate, and Chinese

tourists in other countries rely on the app to stay connected while abroad. Similarly, many academics in the Chinese diaspora now use the service to collaborate with researchers in Singapore, Hong Kong, and mainland China (where it is used much more often than WhatsApp, Zoom, or Skype). Banning WeChat outright will thus disrupt the lives of many US citizens and residents – probably on the order of one million people – who use the app regularly. Whether the move is worthwhile depends on if it serves some higher purpose effectively. According to Trump’s order, WeChat is guilty of two offenses. First, it collects mobility data and the content of communications from US citizens, permanent residents, and visitors to the US from China, and potentially makes this information available to the Chinese government. So, a ban protects people’s privacy. Second, the Trump administration claims that disguised Chinese government entities are spreading disinformation on WeChat, in which case a ban would curtail Beijing’s ability to transmit propaganda. Both these apparent benefits are illusory. The idea that a ban strengthens privacy rests on the assumption that WeChat users in the US are stupid or uninformed, and thus cannot weigh the costs and benefits on their own. The

implication is that Uncle Sam needs to strip away the right to download and use the app in order to protect users from themselves. The irony is that the ban comes from a president who declines to adopt a mandatory face-mask requirement in public places during a viral pandemic, which would have saved American lives. As for the claim about disinformation, there are two points to consider. First, given the Chinese state’s control of all media (online and off ) within the country, WeChat is a relatively unimportant channel for the government’s message outreach. Second, US-based users often share information with friends and family in China, who then may pass it along to other WeChat groups. That makes WeChat a crack in China’s Great Firewall. Even if a post is taken down by a WeChat censor, it is often reposted in some other form, and users regularly deploy creative wording and formatting in their messages to bypass the censoring algorithm. By banning WeChat in the US, Trump is closing an important opening in the firewall. An alternative three-pronged policy would be superior to a ban. First, the president could order all US government agencies and employees not to use WeChat, with the US embassy in China being the exception. Second, the US government could mandate

that Apple, Google, and other US app vendors issue a pop-up warning to anyone downloading WeChat. It could state that, “The US government determines that this app may be used to track your movement and the content of your communication and that this data could be available to the Chinese government. Some advertisements on WeChat may come from the Chinese government.”1 Third, the US could order Tencent to stop sending push notifications or advertisements to any users whose accounts are registered with a US phone number, or who are traveling in the US. This is easy to do technically, and Tencent would have an interest in complying with such a directive. Because the US commerce secretary must still define the prohibited “transactions” mentioned in the order, there is hope that the scope of the policy will be narrow enough to avoid some of the counterproductive consequences. But the threepronged alternative approach would be even better.

Shang-Jin Wei, a former chief economist at the Asian Development Bank, is Professor of Finance and Economics at Columbia Business School and Columbia University’s School of International and Public Affairs. Copyright: www.project-syndicate.com

FRIDAY AUGUST 14, 2020

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Statement by the Executive Director of National Service Scheme, Mustapha Ussif, on International Youth Day

he National Service Scheme has played and continues to play a crucial role in deploying graduates from our tertiary institutions to workplaces within the public and private sectors across the country. “In the past 6 years, the Scheme has posted about 502,494 graduates to various public and private sectors of the economy averaging 70,000 each year and over 100,000 deployed in 2019”. National Service Scheme under this regime has strategically positioned the scheme to ensure service personnel become job creators instead of job seekers. In recognizing the instrumental role the Scheme plays in brokering graduates employment between different sectors of the economy, the Scheme has been on a constant quest to consistently evolve itself and become responsible to the needs of graduates and employment trends of the job market and the required skills needed. The Scheme has strategically introduced initiatives that will ensure our graduates benefit fully from H. E. President AkufoAddo’s flagship programmes such as the Planting and Rearing

for Food and Jobs. This has led to the introduction of the Entrepreneurship and Innovative Module (EIM) by the Scheme where graduates are trained in the various value chain of poultry production. Subsequently, successful beneficiaries of this programme were resourced financially and provided with the needed logistics to enable them to set up their own businesses after service”. The Scheme also facilitated personnel under this module to acquire the needed financial capital and required skills from Microfinance and Small Loans

Centre(MASLOC), National Entrepreneurship and Innovation Plan (NEIP), Venture Capital and other agencies which enabled them to start their own enterprises. This has helped in creating jobs to absorb other unemployed graduates and non-graduates. The Scheme also entered into a strategic partnership with an entity called Songhai Group to establish a training hub, where ten (10) personnel were trained and vetted by consultants on how to develop next-generation digital tools. Their mandate is to develop solutions to the many challenges we face as a country.

The Scheme believes that a strong partnership with the private sector would galvanize the ongoing efforts towards developing and empowering service personnel who can create jobs and compete globally on the talent market. A few days ago, the Scheme signed a Memorandum of Understanding (MOU) with the Springboard Road Show for a Covid-19 resilient programme to train personnel in relevant workplace skills and job readiness, wellness, and safety at the workplace and health awareness in general. This is to ensure personnel bounce back fully and readily from the impact of Covid-19. As we celebrate the International Youth Day, we as youth owe ourselves and the country a responsibility to transform our beloved motherland. It is therefore important that we take advantage of policies and programmes of President Akufo-Addo to ensure we are not left out. Ghana is working with the effort, dedication, determination, and strong spirit of patriotism among the youth. Let us all play our respective roles in ensuring that Ghana keeps working.

COVID-19: FirstRand Receives US$235m Guarantee from MIGA to Unlock Liquidity MIGA, a member of the World Bank Group, has issued guarantees of up to US$235 million to a wholly-owned subsidiary of South Africa’s FirstRand group, for a period of up to 15 years, covering the subsidiaries’ mandatory reserves held as per regulatory requirements in Botswana, Eswatini, Ghana, Lesotho, Mozambique, Nigeria, and Zambia. The guarantees will help unlock funding and liquidity, and support the economies of the host countries, which are being severely impacted by the COVID-19 pandemic, particularly in the commodities markets. Nearly 60 percent of the support provided by the MIGA guarantees will be directed to low-income IDA countries, and twelve percent will go to Mozambique, a country recently affected by conflict. The global outlook remains weak due to the COVID-19 crisis. Economic growth is projected to contract in all of the host countries,

with five of the seven (excluding Ghana and Mozambique) entering negative growth in 2020. Banks are facing increased pressure to optimize capital allocation and reduce risk exposures. “Our support for a key regional bank that is helping weather the fallout from the global pandemic across seven countries in Sub-Saharan Africa is timely and essential,” said MIGA Executive Vice President Hiroshi Matano. “MIGA guarantees will help build resilience within the countries through the continued supply of credit. For the longer term, our support will help lay the foundations for credit growth and employment.” MIGA’s capital optimization product reduces the risk-weighting of the subsidiaries’ mandatory minimum reserves on FirstRand’s balance sheet. FirstRand will use the freed-up capital to sustain the lending activities of its subsidiaries. “MIGA’s capital optimization product is particularly important

now, given the stresses in many of the economies in which we operate on the African continent. In particular, it enables the availability of capital to support these economies through continued lending,” said Andries du Toit, FirstRand Group Treasurer. MIGA’s support also entails providing assistance to the subsidiaries through the implementation of FirstRand’s updated Environmental and Social Management Systems (ESMS) and other policies related to MIGA’s Performance Standards. This will improve the subsidiaries’ current environmental and social risk management practices. MIGA was created in 1988 as a member of the World Bank Group to promote foreign direct investment in emerging economies by helping mitigate the risks of restrictions on currency conversion and transfer, breach of contract by governments,

expropriation, and war & civil disturbance; and offering credit enhancement to private investors and lenders. Since its creation, MIGA has issued over $59 billion in guarantees across 118 developing countries. The World Bank Group, one of the largest sources of funding and knowledge for developing countries, is taking broad, fast action to help developing countries strengthen their pandemic response. We are supporting public health interventions, working to ensure the flow of critical supplies and equipment, and helping the private sector continue to operate and sustain jobs. We will be deploying up to $160 billion in financial support over 15 months to help more than 100 countries protect the poor and vulnerable, support businesses, and bolster economic recovery. This includes $50 billion of new IDA resources through grants and highly concessional loans.

FRIDAY AUGUST 14, 2020

S U P P L E M E N T   O N

74TH INDIA

INDEPENDENCE DAY

STRENGTHENING INDIA-GHANA RELATIONS

w w w . t h e b u s i n e s s 2 4 o n l i n e . n e t

74th Independence Day of India

FRIDAY AUGUST 14, 2020

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H.E. Ram Nath Kovind President of India

H.E. Narendra Modi Prime Minister of India

Message from His Excellency Sugandh Rajaram  High Commissioner of India to Ghana

n  the  occasion  of  the  c e l e b r a t i o n   o f   74 t h  Independence  Day  of  I n d i a ,   I   e x t e n d   w a r m e s t  greetings and felicitations to my  compatriots living in Ghana. Since  its  independence  in  1947,  India  has  progressed  considerably  in  the  journey  of  n at i o n   b u i l d i n g .   T h e re   i s  i m p r o v e d         p h y s i c a l  infrastructure.    India  used  to  import food grains and depend  on international food aid till the  mid-1960s.  Today  India  is  selfsuﬃcient  in  terms  of  food  production  and  even  exports  various  food  grains.    India  is  one of the fastest growing tech  hubs  of  the  world.    Tech  c o m p a n i e s   i n   I n d i a   h av e  created jobs, driven growth and  increased  access  to  various  resources, resulting in lowered  poverty  levels  and  enhanced  lifestyles.  India  has  achieved  “universal  primary  education”  with increased gender equality  in terms of enrollment.  India is  among  a  handful  of  countries  w i t h       a d v a n c e d     s p a c e  technology  and  has  launched  satellites  to  explore  the  moon  and also launched Mars Orbiter  Mission to probe Mars. The recently launched New  Education Policy, a landmark in  the  history  of  education  in

I n d i a ,   i s   c o m p r e h e n s i v e ,  holistic,  farsighted  and  will  certainly play a great role in the  nation's  future  growth  that  seeks to transform India into a  vibrant  knowledge  society.    It  r i g h t f u l l y     b a l a n c e s     t h e  rootedness and pride in India as  well  as  acceptance  of  the  best  ideas and practices in the world  of  learning  from  across  the  globe.  The  Government  is  working  on  providing  every  Indian  an  affordable  housing  w i t h   t o i l e t ,       e l e c t r i c i t y  c o n n e c t i o n ,         L P G   g a s  connection,  access  to  drinking  water,  etc.    Other  important  schemes  by  the  Government  include  Skill  India  Mission,  Digital  India  Mission,  Make  in  India  Mission,  and  Start-up  I n d i a   M i s s i o n   f o r   ove r a l l  economic  development  of  the  nation. India is facing the COVID-19  situation  with  fortitude  and  a  spirit  of  self-reliance.  That  is  evident  in  the  fact  that  from  zero production of PPEs before  March  2020,  India  today  has  created a capacity of producing  200,000 PPE kits daily. The call  by  the  Prime  Minister  to  use  these  trying  times  to  become  'Atmanirbhar'  (self-reliant)  has  been  very  well  received  to  enable  the  resurgence  of  the  Indian  economy.    Self-reliant  India does not mean cutting off  from  the  rest  of  the  world  but  translates  into  being  a  bigger  and more important part of the  global  economy.  As  part  of  'Atmanirbhar  Bharat',  various  m e a s u r e s     h a v e   b e e n  announced  for  businesses,  i n c l u d i n g   M S M E s ,   a n d   t o  b e n e fi t     e n e r g y,   m i n i n g ,  agriculture,  animal  husbandry  and fisheries sectors and, more  importantly,  the  farmers  and  poor migrant labourers. I n d i a   a n d   G h a n a   h ave  traditionally enjoyed close and  friendly  relations  that  have  stood the test of time. There is  much  that  unites  India  and  Ghana  -  our  cultural  values,

people-to-people  linkages,  the  shared  struggle  for  freedom,  t h e   d a w n   o f   t h e   n e w  opportunities, and the unity of  a s p i r a t i o n s   o f   o u r   yo u n g  population and much more. As  we  are  passing  through  this  difficult  and  unprecedented  period  of  corona  crisis,  we  stand  shoulder  to  shoulder  much more with the people and  Government  of  Ghana  to  fight  this  disease  and  overcome  the  crisis.   I would like to take this  opportunity  to  commend  the  people  and  Government  of  Ghana  for  taking  all  timely  measures  towards  containing  the pandemic. There  have  been  frequent  high-level  exchanges  between  the two countries in the recent  past, including the visit by H.E.  Nana  Addo  Dankwa  AkufoAddo,  the  President  of  Ghana,  for the Founding Conference of  the International Solar Alliance  held  in  New  Delhi  in  March  2018,  and  H.E.  Dr.  Mahamudu  Bawumia,  Vice  President  of  Ghana, as the Chief Guest at the  14th  CII-EXIM  Bank  Conclave  held at New Delhi in March 2019  – besides other ministerial level  visits from both sides. India  has  been  a  reliable  and steady partner of Ghana in  her  developmental  journey  of  socio-economic growth, guided  by the principle of South-South  C o o p e r a t i o n .       I n d i a ' s  developmental  partnership,  based  on  the  priorities  set  by  the  Government  of  Ghana,  made  signific ant  pro gre ss  through  concessional  Lines  of  Credit  being  extended  by  the  Government  of  India  to  the  G overnment  of  Ghana  for  development  projects.  India  would  be  happy  to  consider  o t h e r     p r o j e c t s   u n d e r  concessional lines of credit. O n   t h e   e c o n o m i c   a n d  commercial front, India is keen  to  strengthen  relations  with  Ghana  for  mutual  benefit  of  both peoples and supports the  realisation  of  "Ghana  Beyond

Aid"  through  enhanced  trade  and  investment  relationship.  Indian investment is significant  in  Ghana  and  covers  wide  sectors  like    construction,  m a nu f a c t u r i n g ,     t r a d i n g ,  pharmaceuticals,    agroprocessing,    ser vices  and  tourism, etc.  Ghana  is  included  in  the  countries  whose  nationals  are  eligible for e-Visa, and we invite  Ghanaian  nationals  to  visit  India  for  tourism,  business  or  medical treatment using the evisa facility. People-to-people  linkages  a r e     f u n d a m e n t a l   t o   o u r  relationship.  ITEC  training  programmes  are  popular  and  sought  after  by  Ghanaians.   India  has  been  supporting  Ghana  in  capacity  building  by  sending  large  numbers  of  Ghanaian  officials  for  various  programmes/fellowships under  the ITEC programme and under  the India-Africa Forum Summit  decisions.   During the last two  years,  Ghana  utilised  around  200  ITEC  slots,  60  slots  under  IAFS  and  30  slots  under  ICCR  scholarships.  We  are  also  currently  implementing  the  'tele-education'    project  in  Ghana. Ghana is home to a sizable  number  of  people  of  Indian  origin who cherish the warmth  and friendship of the Ghanaian  people.    Some  of  them  have  been  in  Ghana  for  over  seven  decades and they form a bridge  between our two countries and,  in  a  sense,    are  our  t rue  Ambassadors.  India has always stood with  Ghana  and  will  continue  to  extend  its  helping  hand  to  G h a n a   i n     i t s     e c o n o m i c  development.    I  am  confident  that the coming years will help  to  build  even  closer  bonds  of  friendship  between  our  two  nations.  Jai Hind! Long Live Independence  of  India!  Long  Live India-Ghana Friendship.

Strengthening India-Ghana Relations

THURSDAY AUGUST 13, 2020   FRIDAY AUGUST 14, 2020

74th Independence Day of India

h a r m a n o v a     i s     a  m u l t i n a t i o n a l  p h a r m a c e u t i c a l  manufacturing  company  with  operations  in  West  Africa.  Its  headquarters is in Osu, Accra,  G h a n a .   T h e   c o m p a n y  manufactures 60 percent of its  quality  medicines  in  a  wide  array of therapeutic categories.  Pharmanova  imports  a  few  specialised  products  such  as  vaccines,  serums,  anesthetics  and  antibiotics  (injections),  and  suppositories  from  wellrenowned  companies  from  all  over the globe. Pharmanova  Limited  was  ﬁrst incorporated in Ghana as a  limited  liability  company  in  May  2005  and  has  expanded,  with  subsidiaries  in  other  countries such as Côte d'Ivoire  (Pharmanova  Cote  d'Ivoire),  Benin  (Pharmanova  Limited  SARL),  Burkina  Faso,  Mali,  Guinea,  and  has  partnered  with  other  pharmaceutical  marketing  companies  such  as  Blooms    Pharmaceutic als  (Nigeria)  and  Alpha  Sante  (Togo). Pharmanova  is  a  pioneer  of  combination  therapy  for  cardiac products in Ghana. The  company makes supplies to the  Ministries of Health in Ghana,  Benin,  Togo,  Côte  d'Ivoire,  Mali,  Guinea,  Burkina  Faso,  and Chad through their Central  Medical Stores. We currently produce the  following  products  in  tablet  form:  Anti- Cardiac;  AntiD i a b e t i c ;     A n t i b i o t i c ;  Analgesics;  Antihistamines;  Anti-cold;  Anti-Cough;  and  Antacids. We also manufacture  suppositories  and  various  vitamin  preparations,  among  others To  enable  us  establish  a  broader  presence  in  the  West  African sub-region, and to stop  the  impor t ation  of  L arge

FRIDAY AUGUST 14, 2020

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Pharmanova Limited

Volumes Parenterals as well as  ear, eye and nose drops, which,  u l t i m a t e l y,   w i l l   h e l p   i n  conserving and earning foreign  exchange  for  the  country,  we  have  established  a  subsidiary  company, Atlantic Lifesciences  L td . ,   wh i c h   h a s   re c e ive d  authorisation  from  the  Free  Zones  Authority.  We  have  subsequently  acquired  a  20acre  land  in  the  NingoPrampram  District  along  the  Tema-Aﬂao  road,  and  we  are  currently constructing a stateo f - t h e - a r t   f a c t o r y   u s i n g  G e r m a n   t e c h n o l o g y   ( B F S  technology) for manufacturing  i n f u s i o n s .   We   s h a l l   a l s o  produce eye, ear & nose drops,  oral  liquid,  as  well  as  mass  production of hand sanitisers.  The  construction  has  reached  a n     a d v a n c e d   s t a g e   o f  completion. Additionally,  currently,  we  are  importing  Anti-Snake  s e r u m     a n d   A n t i - R a b i e s  vaccines for distribution in the  country, but we are putting up  s t r u c t u re s     f o r   t h e   l o c a l  manufacture  of  Anti-Snake  serum,  Anti-Rabies  vaccine  and Anti-Tetanus vaccine, with  technical  cooperation  from  Vins BioProducts Ltd. of India,  for  supply  not  only  in  Ghana  but to export about 70% to all  countries  in  Africa.  At  the  moment,  we  are  the  major  importers  and  suppliers  of  Anti-Snake  serum  and  Anti-  Rabies  vaccine  in  the  West  African  sub-region.  We  intend  to  produce  six  (6)  vaccines,  Anti- Snake, Anti-Rabies, Anti-  Diphtheria,  Anti-Scorpion,  A n t i -Te t a nu s ,     a n d   A n t i -  Gangrene locally when on full  stream.  We  expect  to  employ  over three hundred workers. As at the end of the second  q u a r t e r   o f   2 0 1 8 ,   we   h a d  successfully  commenced  the  manufacturing  of  suppository

locally, writing our name as the  fi r s t   p h a r m a c e u t i c a l  manufacturing  company  in  Ghana to produce suppository  locally. This is in line with our  aim  to  reduce  reliance  on  scarce  foreign  exchange  to  i m p o r t     t h e     n e e d e d  pharmaceutical  medicines  for  our people. We shall continue  to  chalk  such  feats  in  the  coming years by gradually but  systematically  manufacturing  most  of  the  essential  drugs  locally to relieve the tension on  our  foreign  reserves.  We  will  continue  to  set  for  ourselves  t h e   h i g h e s t   s t a n d a rd s   o f  business  ethics  and  customer  services. Pharmanova  Limited,  t h r o u g h   i t s   s u b s i d i a r y  company  Pharmanova  Côte  d'Ivoire  SARL,  has  acquired  a  large  piece  of  land  and  has  constructed  a  state-of-the-art  GMP  standard  factory  in  the  M a h a t m a       G a n d h i  Technological  Park  at  VITIB  (Free Zones) in Grand Bassam,  Republic  of  Côte  d'Ivoire.  It  is  the  first    pharmaceutic al  manufacturing  company  in  that free zones enclave in Côte  d'Ivoire.    The  project  was  commissioned  on  27th  June,  2019  by  the  Vice  President  of  the  Republic  of  Côte  d'Ivoire  and will help in providing good  quality and affordable drugs to  Ivory  Coast  and  the  other  neighbouring  countries.  The  factory's  focus  will  be  on  manufacturing/repacking  and  delivering innovative and highq u a l i t y   p r o d u c t s ,   w h i c h  include  a  broad  portfolio  of  specialised prescription as well  as  Over  the  Counter  (OTCs)  m e d i c a l   p r o d u c t s   i n   a l l  i m p o r t a n t   t h e r a p e u t i c  segments.

Branches

In  addition  to  the  head

office which is located in Osu,  Accra, we have regional offices  in Kumasi, which caters for the  Ashanti,  Brong  Ahafo,  and  Eastern  Regions,  and  Tamale,  which caters for the Northern,  Upper  East  and  Upper  West  Regions. The head office caters  for the Greater Accra, Central,  Western and Volta Regions. We  have  over  300  workers  in  all  these  offices,  and  the  number  is expected to increase to over  750 in the coming year.

Vision

Pharmanova  Limited  is  dedicated  to  improve  the  quality  of  people's  lives  by  providing  innovative  health  care  products  which  are  not  just  aﬀordable  but  also  meet  the  highest  quality.  This  is  in  t u n e   w i t h   t h e   c o m p a ny ' s  sl o g a n   o f   “C o m m i t t e d   t o  provide quality healthcare.”

Mission

To  become  Africa's  "most  v a l u e d   c o m p a n y   i n   t h e  pharmaceutical  sector".  This  involves  our  ability  to  emerge  as a company recognised as the  best  in  price  and  quality  by  patients,  customers  and  all  s t a ke h o l d e r s     w i t h i n   t h e  industry  and  honouring  our  social  responsibilities  in  the  communities  where  we  live  and  work.  It's  a  long-term  mission  focused  on  making  Pharmanova's  irrefut able  s u c c e s s   s t o r y   a   w i n n i n g  proposition for everyone!

Our Goal

Regional  expansion  to  all  countries  in  the  West  African  sub-region  and  ultimately  the  whole of Africa, while keeping  our  eyes  on  our  customers,  serving them with respect and  keeping faith with them.

Strengthening India-Ghana Relations FRIDAY AUGUST 14, 2020

74th Independence Day of India

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FRIDAY AUGUST 14, 2020

A stronger partnership with Bajaj Auto Limited

omoco Ghana Limited is a  s u b s i d i a r y     o f     t h e  M o h i n a n i     G r o u p ,   a  leading  manufacturing  and  trading  company  in  Ghana.  Established  in  2013,  Somoco  Ghana Limited partnered with  the world's fourth largest two  wheeler  and  largest  three  wheeler  manufacturer,  Bajaj  Auto  Limited,  to  launch  Bajaj  Boxer  motor  bikes  and  RE  tricycles in Ghana.  The company is currently  the sole authorised distributor  and  partner  of  Boxer  motor  bikes  and  Bajaj  RE  passenger  wheelers.      As  partners,  Somoco  and  Bajaj  Auto  have  worked  together  to  bring  Ghanaians  another  worldc l a s s           s o l u t i o n         t o  transportation and mobility in  Ghana.  Since  its  entry  to  the  Ghanaian  market,  the  Bajaj  brand has constantly appealed  to  Ghanaians  through  its  primary qualities of reliability,  durability, and fuel eﬃciency.  T h e   b r a n d   i s   b a c k e d   b y  eﬃcient and timely after-sales  service. Ghana became the 51st  market  destination  of  Bajaj

globally,  with  9  operational  s h o w r o o m s   i n   7   r e g i o n s  nationwide.  Today,  Somoco  Ghana  Limited  boasts  of  a  large  and  widespread service and spare  parts  network  across  Ghana,  providing  swift,  eﬃcient  and  excellent  customer  service  to  Ghanaians  nationwide.  The  c o m p a n y     h a s   p r o v i d e d  eﬃcient,    economical,  ecofriendly      transportation  solutions  to  thousands  of  Ghanaians.  Somoco's  commitment  does  not  stop  with  providing  cutting-edge technology to the  market, but also commitment  to the safety of customers. The  company  continues  to  invest  and run road safety initiatives  educating and promoting road  safety in Ghana.

Bajaj 2 Wheelers – Boxer

Bajaj's  product  range  comes  with  6  months  engine  warranty for some of the best  a n d   m o s t   e c o n o m i c a l   2  wheelers, like Boxer 100ES, an  electric  start  2  wheeler  bike.  Noted for its low maintenance  cost and durability, Bajaj boxer  100ES  has  superior  engine,

long  lasting  performance  power gears, and optimal fuel  utilisation. The  Bajaj  Boxer  150  has  150cc  engine  with  5  Speed  Gear  Box  that  ensures  better  engine    utilisation.    This  product gives riders maximum  comfort as a result of its wider  foot  rest  and  mobile  charger.  Another of Bajaj's 2 wheelers is  Boxer  125.  Boxer  125  has  absorptive suspension, robust  chassis,  gear  indicator,  and  superior  engine  running  on  5  Gears. Latest  among  its  kind  is  the  Bajaj  Boxer  150x,  the  ultimate  oﬀ-road  companion  that allows heavy loads whilst  d e l ive r i n g               s u p e r b  performance.  Boxer  150x  sports  a  powerful  144.8cc  engine with a net torque of 12.3  NM  at  5500  RPM.  This  bike  model is equipped with strong  chassis  and  long  wheel  base  that  keeps  it  sturdy  on  rough  roads.

3 Wheelers – Bajaj RE

Bajaj  RE  is  the  world's  most  powerful,  durable,  and  economical tricycle. Bajaj RE is  rated  as  Africa's  No.1  most

e ffi c i e n t   a n d   e c o n o m i c a l  tricycle  with  4  Stroke  DTS.I  Engine  (double  spark  plug).  The Bajaj RE is robust, safe and  easy  to  use  even  in  the  most  remote areas.  Currently, Somoco Ghana  i s   o ff e r i n g   3 - c o u n t   F r e e  Services and 12 months Engine  Warranty across its authorised  service  stations  nationwide.  Somoco's Bajaj RE range offers  the  best  Crank  Case,  Crank  Shaft, Cylinder Head, Gear Box  and Block Piston. T h e   c o m p a ny ' s   l ate s t  addition is the Bajaj Maxima Z,  which  is  roomy,  comfortable  and bigger. Bajaj Maxima Z has  a  powerful  engine  in  the  industry, with 12% more power  and 17% more pickup than any  other 3 wheeler vehicle.  The  product  is  highly  durable  with  long  lasting  dry  clutch,  uniaxial  balancer  for  less vibrations, and reinforced  chassis  for  longer  vehicle  life.  I t   h a s   c a r- l i ke   a d v a n c e d  features  like  the  car  type  clutch  pedal  to  handle  heavy  load,  5  speed  gear  box  to  handle tough roads, and wide  seats for driver  comfort.

The consumer electronics and durables distributor

s t a b l i s h e d   i n   1 9 8 6 ,  Somotex Ghana Limited  i s   G h a n a ' s   l e a d i n g  consumer  electronics  and  durables  distributor  with  23  retail outlets under the brand  name Electromart.  Noted  for  world- class  service    centres  across  5  regions,  Somotex  Ghana  has  constantly    evolved  with  continuous  innovation  across  the    commercial    airconditioning    sector    and  consumer  electronics.  The  company  has  strong  ties  with  global  brands  such  as  LG,  Panasonic,  Philips,  Orient,  Samsung  and  many  more  international brands.

T h e   c o m p a ny ' s   re t a i l  shop,  Electromart,  is  Ghana's  leading authority in consumer  electronics and mobile phone  retailing  with  21  showrooms  across Ghana. Electromart is a  3x Multiple CIMG recipient for  Best  Electronics  Retail  Outlet  2015, 2016 and 2017.   In 2017,  Electromart was recognised as  the  Best  Electronic  Company  of the Year by Ghana Business  Awards.

MRF Tyres

Somotex Ghana is the sole  distributor  of  MRF  tyres  in  Ghana. MRF is the largest tyre  producer  from  India.  The  company has the widest range  o f   t y re s ,   s t a r t i n g   w i t h   2

wheelers  and  passenger  4X4,  truck radials, truck nylon, oﬀthe-road  tyres,  grader,  and  industrial forklift tyres.  T h e   c o m p a n y   a l s o  produces  ﬁghter  plane  tyres,  exporting to over 139 countries  in  the  world.  MRF  tyres  are  well  accepted  in  Ghana  and  known  for  their  quality  and  trouble-free  services.  OEM  manufacturers  like  Toyota,  Nissan,  Renault,  Hyundai,  Mercedes Benz, Ford, Suzuki,  and  TATA  use  MRF  tyres  for  their vehicles.

Index Batteries

Index    is    a  brand  of  automotive          batteries

m a n u f a c t u r e d   b y   E x i d e  Industries  Limited,  India.  T h e y     a r e     t h e     l a r g e s t  manufacturers  of  batteries  in  India, with 60% market share.  Index batteries are heavier and  made  with  virgin  lead  for  all  types of vehicle.  Index batteries come with  warranty.  They  are  durable  and  suited  for  the  Ghanaian  tropical  climate.  Some  of  the  global  brands  that  use  Index  batteries  are  Toyota,  Nissan,  Hyundai, Renault, Ford, Volvo,  Mercedes  Benz,  Suzuki,  TATA  and  Ashok  Leyland.  Somotex  Ghana is the ﬁrst company to  introduce Index batteries into  the Ghana market.

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74th Independence Day of India

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&  G  Pharmaceuticals  Limited  is  one  of  the  m o s t       re c o g n i s e d  pharmaceutical manufacturing  companies  in  Ghana.  We  have  o u r   h e a d q u a r t e r s   i n  Jamestown, Accra, with oﬃces  in Kumasi and Tamale, serving  over 800 clients. These include  Ministry  of  Health,    Central  Medical  Store,    all  the  10  regional medical stores, NGOs,  private  hospitals  and  clinics,  regional  and  district-level  g o v e r n m e n t     h o s p i t a l s ,  w h o l e s a l e     a n d   r e t a i l  pharmac ies,  and  licensed  chemical  shops.  In  2014,  we  started exports to The Gambia

he  Melcom  Group  of  Companies  consists  of  six  separate  entities:  Melcom  Limited,  Century  Industries  Limited,  Crownstar  Electronic  Industries  Limited,  Melcom  Hospitality,  Melcom  Travels  Limited,  and  Melcom  Care  Foundation.  Melcom  Limited,  the  first  company  of  Melcom  Group,  i s  one  of  Ghana's  premier  retail  chains.  Ap a r t   f ro m   c a p t u r i n g   a n  extensive  retail  market  share  with  a  network  of  46  Melcom  retail outlets and 7 cash 'n carry  stores  spread  all  over  Ghana,  the  Group  is  well-diversified  into  other  industries  as  well.         We  believe  in  integration,  a n d   h ave   g row n   t h ro u g h  backward integration. This has  allowed  us  to  enter  different  i n d u s t r i e s           i n c l u d i n g  electronics, servicing,   plastics  manufac turing  and  more.  While  our  main  business  is  primarily  driven  by  retail,  we  are also strong players in semiwh o l e s a l e   a n d   wh o l e s a l e  distribution        due    to  a  combination  of  the  vast  range  of goods we stock as well as our  wide distribution network. Our  commitments  include  having

FRIDAY AUGUST 14, 2020

and  Liberia,  and  have  also  registered  our  products  in  Sierra Leone. We currently have a total  product range of 152 products,  available  in  tablets,  capsules,  s y r u p ,   s u s p e n s i o n s ,   d r y  powders and  injectables. Our  success  is  driven  by  our    people      and    their  commitment  to  operating  responsibly,  executing  with  exc e l l e n c e ,   a n d   a p p l y i n g  innovative    technologies  to  produce  medicines  of  the  highest quality. We     b e l i e v e   t h a t   n o  country can progress without a  strong  industrial  base.  The

most  developed  countries  in  the  world  today  are  strong  because they have a very strong  and sound industrial base. M & G Pharmaceuticals is  an  executive  member  of  the  Association of Ghana Industries  (AGI),  past  treasurer  of  West  Afr ic an      Pharmaceutic al  Manufacturers'    Association  (WAPMA),  and  also  past  vice  president  of  Pharmaceutical  Manufacturers'  Association  of  Ghana (PMAG). M  &  G  Pharmaceuticals  has  been  awarded  the  Ghana  Quality Awards in the early part  of  the  millennium  as  well  as  b e i n g   a d j u d g e d   t h e   b e s t

performing  company  in  the  pharmaceutical  industry  in  Ghana by the AGI. Our  brands,  'Zintab'  and  'Ezipen', were awarded the best  Made in Ghana pharmaceutical  brands of the year 2013 by the  G h a n a         E n t r e p r e n e u r  Foundation. Our company was  a l s o       r e c o g n i s e d       b y  Superbrands,    the    world's  largest  independent  arbitrator  for  branding,  as  one  of  the  40  topmost  emerging  brands  in  the year 2013. M  &  G  Pharmaceuticals  has  been  a  member  of  the  prestigious Ghana Club 100 for  the past 17 consecutive years.

the  largest  variety  of  goods  under one roof, oﬀering quality  products  at  aﬀordable  prices,  ensuring a conducive shopping  environment,  providing  the  best customer service and after  - sales    support, conveniently  locating  outlets  in  all  regions  and  bringing  the  shopping  experience  to  the  consumer's  doorstep  while  guaranteeing  uniform  pricing  throughout  Ghana  and  catering  for  all  income  levels.  These  qualities  h a v e   m a d e   M e l c o m   t h e  household name it is today.

of Fame in 2017 2. Ranked No.1 Retail Outlet of  t h e   Ye a r   by   t h e   C I M G  Ghana    (14  consecutive  years) 3. Listed on GIPC Ghana Club  100 Companies in Ghana 4.  Achieved  Superbrands  Status, 2018-2020 5. Ghana Ecommerce Awards,  Best  Online  Superstore  of  the Year, 2018 6 .   N a m e d     O u t s t a n d i n g  Company in Aﬀordables by  Business          Executive  Magazine, 2018 7.  Won  Most  Compliant  in  Building Safety Regulations  at the Environment Health  & Safety Awards, 2018 8.  Adjudged  Best  Made  in  Ghana  Retail  Outlet  of  the  Year  by  Entrepreneurs  Foundation, 2018 9.  Named  Best  Company  in  Project  Promoting  Arts  &  Culture  -    Sustainability  Awards, 2018 10.  Won  Outstanding  Retail  C o m p a ny   a t   t h e   We s t  African  Business  Awards,  2019 1 1 .   Aw a r d e d         P l a s t i c s  Manufacturing Company of  t h e     Ye a r     -     G h a n a

Manufacturing  Awards,  2019

Awards & Recognition Melcom        Group  of  Companies  is  proud    to    be  recognised  by  organisations  and  publications  as  a  leader  across  the  manufacturing,  wholesale  and  retail  sector  in  Ghana.  Melcom  has  also  been  recognised for our brand value,  product  innovation,  product  excellence,  customer  service,  and community investment. Here  are  some  of  the  awards we have been honoured  to receive:

Recognition  as  a  Leading  Company 1. Inducted into the CIMG Hall

Recognition as  Business Leaders 1.  Lifetime  Achievement  in  Brand Management by the  Business        Executive  Magazine, 2018 2.  Best  Director  of  Brand  Management      by    the  Fe m i n i n e       Ac h i e ve r s  Awards      (  3  Consecutive  Years) 3. Samsung Partner of the Year  (4 Consecutive Years) 4. Group CEO of the Year, 2019 5.  Internal  Audit  Team  of  the  Year at the Ghana Finance  Innovation Awards, 2019 6.  Finance  Team  of  the  Year,  Retail at the Ghana Finance  Innovation Awards, 2019 7.  Our  CFO  won  CFO  of  the  Year at the Ghana Finance  Innovation Awards, 2019 8.  Ghana  Human  Resource  Innovation  Awards  -  HR  Innovation  of  the  Year,  2019 9.   H u a w e i         E x c e l l e n t  Performance Award 10. Yamaha Outstanding Sales  Growth

Strengthening India-Ghana Relations FRIDAY AUGUST 14, 2020

74th Independence Day of India

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FRIDAY AUGUST 14, 2020

Strengthening India-Ghana Relations

FRIDAY AUGUST 14, 2020

India: A premier healthcare  destination

ver  the  years,  India  has  grown  to  become a top-notch destination for  medical  value  travel  because  it  scores  high  over  a  range  of  factors  that  determine  the  overall  quality  of  care.  Imagine  a  complex  surgical  procedure  being done in a world-class global hospital  by acclaimed medical specialists at a ﬁfth to  a  tenth  of  what  it  normally  takes!  That's  India.  From  quality  of  therapy,  range  of  procedural  and  treatment  options,  infrastructure  and  skilled  manpower  to  perform any medical procedure with zero  waiting  time,  the  list  of  beneﬁts  of  travelling  for  medical  treatment  in  India  are many.

reduce length of hospital stay. The recent  advancements  in  robotic  surgeries,  radiation  surgery  or  radio  therapies  with  cyberknife  stereotactic  options,  IMRT  /  I G RT,   t ra n sp l a n t   su pp o r t   s ys te m s ,  advanced neuro and spinal options are all  available  in  India.  India's  medic al  management and acclaimed specialists are  q u i t e   c o m f o r t a b l e   i n   c h a l l e n g i n g  themselves  to  new  frontiers  to  provide  solutions,  always  building  on  their  expertise.

Finest doctors

advantage is unique for India. The benefit is  unimaginable  when  it  comes  to  major  treatments such as for leukemia, where the  difference  in  cost  is  10  to  20  times.  For  other treatments, it could be anything from  a  fifth  to  a  tenth  when  compared  to  Western countries and 80 to 90 per cent of  what  is  charged  in  other  South  Asian  medical  destinations.  The  estimated  600,000 people who step into India from  other  countries  do  not  do  so  for  cheap  healthcare but for quality healthcare at an  affordable cost. They are not compromised  at any level but regain health at a fraction of  the cost. Fast track – zero waiting time

Why India? The  basics  for  successful  healthcare  solutions Facilities

The high-end healthcare system in India is  as  good  as  the  best  in  the  world.  India  maintains not only a robust accreditation  system  but  also  a  large  number  of  accredited  facilities  (about  275  such  f a c i l i t i e s     t h a t     m a t c h   a ny   g l o b a l  infrastructure).  India  has  a  good  number  (22) of JCI ( Joint Commission International)  accredited  hospitals  and  compares  well  with  other  countries  in  Asia.  This  set  of  approved  hospitals  in  India  can  provide  care at par with or above global standards. Frontier technologies

India  has  not  only  hospitals  with  worldclass  facilities  but  skilled  world-class  doctors  and  medical  personnel  too.  The  country has the largest pool of doctors and  paramedics  in  South  Asia  (1.2  million  Allopathic  doctors,  0.17  million  dental  surgeons, 2 million nurses). Many of them  have  established  their  credentials  as  leaders around the world. India's medical  history spans thousands of years through  Ayurvedic  and  alternate  medicine  forms.  There  are  about  0.8  million  formally  trained  Ayurvedic  doctors.  With  a  large  number of doctors, there is a high level of  competency and capability in adoption of  newer  technologies  and  innovation  and  fresh treatment methods. It is a wonderful  example  of  higher  quantity  leading  to  h i g h e r    q u a l i t y     a n d     v i c e   ve r s a .  Communicate,  talk  to  the  doctors  in  the  accredited facilities prior to your visit and  they will study your needs and customise  the treatment for you!

Quick  and  immediate  attention  for  surgeries and all interventions are assured  in India. Getting an appointment for bypass  surgery or a planned angioplasty in certain  countries  takes  almost  3-6  months.  And  there these treatments are very costly too.  It's  zero  waiting  time  in  India  for  any  procedure, be it heart surgery, kidney care,  cancer treatment, neuro-spinal procedure,  knee/hip/joint  replacements,  dental,  cosmetic  surgeries,  weight  loss  surgery,  etc. Feeling the pulse

Financial savings

Cutting-edge  technologies  to  support  m e d i c a l   d i a g n o s t i c s   a n d   m e d i c a l  procedures are employed by specialists in  medical facilities. All recognised hospitals  h av e   i nv e s t e d   a   l o t   i n   s u p p o r t i v e  technology  and  operative  techniques.  Complicated  heart  surgeries,  cancer  care  and  surgeries,  neuro  and  even  general  surgeries  require  high-end  technology  to  continually  better  outcomes,  minimise  complications, enable faster recovery, and

Quality  of  care  is  what  attracts  people.  However,  quality  services  should  not  be  beyond the affordability of the patient who  requires it. If quality comes at an affordable  cost  it  is  an  unbeatable  advantage.  This  confluence  of  highest  quality  and  cost

For  greater  understanding  bet ween  patients  and  healthcare  personnel,  the  warmth and hospitality of Indian hospitals  is  a  big  factor  in  choosing  India  as  a  healthcare  destination.  Among  the  top  medical  destinations  of  the  world,  India  has  the  highest  percentage  of  English  language-speaking  people.  Amidst  the  variety of culture and traditions, if there is  one thing that is common in India, that is  the  English  language.  If  other  language  options  are  essential,  there  are  expert  interpreters  who  will  be  arranged  by  the  hospit als—all  leading  to  reassuring  hospitality and great after-care.

Credit: indiahealthcaretourism.com

74th Independence Day of India

FRIDAY AUGUST 14, 2020

Strengthening India-Ghana Relations

FRIDAY AUGUST 14, 2020

Sights and Sounds  of India

ourism  in  India  is  important  for  the  country's  economy  and  is  growing  rapidly,  with  the  sector  generating  approximately  US$240bn  or  9.2  percent  of  India's GDP in 2018, according to the World  Travel and Tourism Council. In  2018  tourism  supported  42.67m  jobs,  representing  8.1  percent  of  India's  total  employment. The  country's  medical  tourism  sector  was  estimated to be worth US$3bn back in 2015,  and had been projected to grow to US$7–8bn  by  the  end  of  2020,  with  more  foreign  patients  travelling  to  India  to  seek  medical  treatment.  Known all over the world for its rich culture  and traditions, there is a newly found side to  this ancient country, and that is its colourful  nightlife  thriving  in  the  cities.  Pubs,  nightclubs,  lounges,  musical  concerts  and  vibrant restaurants have found their way into  the nightlife of India's Gen Y.  Here, we proﬁle a list of top Indian tourism  attractions and arts/culture destinations that  have  endeared  the  nation  to  the  hearts  of  millions of 'holidayers' and business visitors.

Taj Mahal

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also one of the world's most iconic monuments, visited by millions of tourists each year.  The complex was designated a UNESCO World Heritage site in 1983.

Lotus Temple

Lotus  Temple  in  New  Delhi is another popular  tourist  destination  in  India. The  Lotus  Temple  in  Delhi is a Bahai House of  Worship and a matchless  architectural marvel that  serves  as  one  of  India's  p r i m e         t o u r i s t  attractions.  Shaped  in  the  form  of  a  spectacular  lotus  with  white petals, it makes for  a breathtaking sight and   a t t r a c t s     c o u n t l e s s  visitors  throughout  the  year.  Unlike most other places of worship, this temple or Bahai House of Worship does not  allow ritualistic ceremonies and has no ﬁxed pattern to   conduct worship. The Lotus Temple, also known as Mashriqu'l-Adhkár, opened to the public in December  1986, and like all other Bahai temples, it is dedicated to the oneness of religions and  humanity.  Followers of all religions are welcome to gather here to pray, worship, and read their  scriptures. The Lotus Temple in Delhi is touted as one of the seven major Bahai Houses of  Worship located across the world and the only one in Asia.

Goa

Goa is Indian's “party-town”.  With  cheap  drinks  and  a  number  of  beaches,  Goa  is  where you'll have a good time,  no  matter  what.  Discos,  beach  parties,  jazz  concerts,  full moon trance parties, rave  parties – you name it and it's  there for you. Casinos are also  quite famous here. Goa is one  of  the  best  places  in  the  country  for  celebrating  New  Year. If you're up for a neverending  part y,  then  Baga  beach  is  where  you  need  to  be.   The  Taj  Mahal  in  Agra,  one  of  the  New  7  Wonders  of  the  World,  is  a  popular  tourist  destination  and  a  UNESCO  World  Heritage  site. Taj Mahal is a mausoleum complex in Agra,  western Uttar Pradesh state, northern India.  It is situated in the eastern part of the city on  the  southern  (right)  bank  of  the  Yamuna  ( Jumna) River.  Agra Fort (Red Fort), also on the right bank of  the Yamuna, is about 1-mile (1.6 km) west of  the Taj Mahal. In  its  harmonious  proportions  and  its  ﬂuid  incorporation  of  decorative  elements,  the  Taj  Mahal  is  distinguished  as  the  ﬁnest  example of Mughal architecture, a blend of  Indian, Persian, and Islamic styles.  One  of  the  most  beautiful  structural  compositions in the world, the Taj Mahal is

The City of Mumbai

“The City of Dreams” or “The  Maximum  City”,  Mumbai  has  always  gone  by  many  names.  Apart  from  Bollywood  and  glamour,  the  nightlife  is  also  what  the  city  is  famous  for.  You'll  ﬁnd  some  of  the  best  k n o w n           i n t e r n a t i o n a l  celebrities, DJs and bands doing  the  rounds  at  parties  and  entertaining  the  humongous  crowds  here.  Insomnia  at  the  Taj Mahal hotel is very popular  for    partying    in  Mumbai.  Enigma, Fire n Ice and Totos are  attractive  too.  For  a  vintage  style party, head to Harbour Bar at Taj Mahal, but if casual is more like your thing, then  the best place is Colaba Social.

74th Independence Day of India

FRIDAY AUGUST 14, 2020

TO  THE REPUBLIC OF  INDIA

from Staﬀ and Management of w w w . t h e b u s i n e s s 2 4 o n l i n e . n e t

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FRIDAY AUGUST 14, 2020

Dollar Sensationalism

BYBARRY EICHENGREEN

he dollar’s fall in July to a two-year low against the euro was the catalyst for sensational headlines shouting that the dollar would soon meet its doom. But too much should not be read into the dollar’s recent moves, which reflect readily explicable fluctuations, not the greenback’s terminal decline. The dollar is in free-fall! The global greenback is doomed! scream recent headlines. Actually, such sensational headlines are “too sensational,” to echo that noted authority on currencies, Miss Prism, in Oscar Wilde’s “The Importance of Being Ernest.” The dollar’s fall in July to a twoyear low against the euro was the immediate impetus for these stories. In fact, the dollar’s recent slide is one in a series of readily explicable fluctuations. When the COVID-19 pandemic went global in March, the dollar strengthened on the back of safe-haven flows into US Treasuries, as it does at the start of every crisis. By May, the Federal Reserve, acting as global lender of last resort, had accommodated this mad scramble for dollars by pouring buckets of liquidity into financial markets, and the greenback gave back its early gains. The dollar’s subsequent depreciation reflects the changing prospects of the US and European economies. With the spread of COVID-19, the US outlook is deteriorating, so investors expect the Fed to keep interest rates low

for longer. In the eurozone, the virus is under better control, and data from purchasing managers’ surveys are surprising on the upside. This improving outlook doesn’t mean that the European Central Bank will start raising its policy rate tomorrow. But it does incline investors to believe that it will start normalizing interest rates earlier. This relationship – you tell me the outlook for interest rates, and I can tell you the change in the exchange rate – has a name, of course. As Miss Prism will remind you, it’s called “interest parity.” This theory doesn’t work perfectly. But no theory of what determines the exchange rate does. When seeking to understand events, we shouldn’t make the perfect the enemy of the good. Seeking to explain euro bullishness, some observers, point instead to agreement by European leaders to issue €750 billion ($884 billion) of European Union bonds. This is bullishness without the “ishness.” Seven hundred fifty billion euros is less than 5% of the stock of US government debt held by the public. It’s a drop in the bucket, in other words. And a drop does not a liquid market in safe assets make. Even if this really is Europe’s “Hamiltonian moment,” ramping up EU issuance by a factor of 20 will take decades. That’s how long Europe will need to create a benchmark asset with the liquidity of US Treasuries. And foreignexchange markets trade on today’s news, not on something that may

or may not happen decades from now. Indeed, the most striking takeaway from recent experience is the dollar’s resiliency. Normally, investors hold a currency when the issuer’s policies are sound and stable. US policy has been risky and erratic, despite having a “stable genius” at the helm. Banks and firms hold a currency when it is useful for invoicing and settling trade with the issuing country. But President Donald Trump’s administration has done more than any in living memory to disrupt US trade. Governments, for their part, hold and use the currencies of their alliance partners. And, under Trump, the United States today is no longer the reliable alliance partner it once was. Given all this, it would appear that the stars are aligned for banks, firms, and reserve managers to back away from the dollar. But the currency’s international role has not diminished significantly. It has declined only along select dimensions – its share in central banks’ foreign-exchange reserves, for example – and even there only marginally. The explanation for this stasis, as Margaret Thatcher famously put it, is “TINA”: there is no alternative. The euro is not an alternative. The stock of safe euro assets remains segmented along national lines, and Alexander Hamilton is not coming to the rescue anytime soon. Nor is the renminbi a viable

alternative. Given heightened tensions with China, no Western government will encourage its residents to depend on the People’s Bank of China for liquidity, any more than they will encourage them to depend on Huawei for 5G. With the Federal Reserve able and willing to act as lender of last resort to the world, the status quo is tolerable. One personnel change at the Fed will not alter how foreign officials view this situation. But one personnel change could augur another, at which point other countries will think twice. At that point, they will realize they have no other option to which to turn. The only solution to this conundrum is more resources for the International Monetary Fund, so that it can supply countries, in a crisis, with the dollars that a future Fed fails to provide. This of course is the solution that John Maynard Keynes offered already in 1944, albeit by another name. The 80th anniversary of Keynes’s “bancor” proposal is imminent. What better way to mark the occasion than by implementing it?

Barry Eichengreen is Professor of Economics at the University of California, Berkeley, and a former senior policy adviser at the International Monetary Fund. His latest book is The Populist Temptation: Economic Grievance and Political Reaction in the Modern Era. Copyright: project-syndicate.org

FRIDAY AUGUST 14, 2020

Feature

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In Five Charts: Understanding the Africa country Policy and Institutional Assessment 2019 Report The  Country Policy and Institutional Assessment (CPIA) for Africa is an annual diagnostic tool for Sub-Saharan African countries eligible for International Development Association (IDA) financing. Covering the year from January to December, the report measures the countries’ quality of policies and institutional frameworks, and their ability to support sustainable growth and poverty reduction. The report provides scores for 16 criteria for each country and an overall regional score on a scale of 1 (lowest) to 6 (highest), in four areas: economic management, structural policies, social inclusion and equity policies, and public sector management and institutions. The score informs governments of the impact of the country’s efforts to support favorable growth and poverty reduction. It also helps determine the size of the World Bank’s concessional lending and grants to low-income Sub-Saharan African countries. The 2019 CPIA includes 39 IDA-eligible countries, one more than in 2018 with the addition of Somalia, which is now eligible for IDA financing after 30 years. The 2019 CPIA scores also provides a view of the policies and institutions at the outset of the COVID-19 pandemic, highlighting the need for the region’s IDA countries to take action to strengthen health systems, protect human capital, strengthen public sector governance and implement structural reforms to boost productivity. Here are the top five highlights from the 2019 Africa CPIA: Rwanda leads CPIA rankings; score remains unchanged for three years The overall CPIA score for the 39 IDA countries was 3.1, which has remained the same since 2016. Rwanda remained at the top of the ranking with an overall score of 4.0, which has also been the same since 2016, underscoring the need for IDA countries to implement economic and institutional reforms consistently. The highest scoring countries also stayed the same, including Cabo Verde, with an overall score of 3.8, followed by Kenya, Senegal and Uganda with overall scores of 3.7. Benin and Ghana saw their overall scores increase from 3.5 to 3.6. These high-ranking countries on the CPIA scale also have economies that are among the fastest growing in the region. Fifteen of the 39 countries, consisting predominantly of fragile countries, scored below the regional average.

Overall CPIA Scores of Sub-Saharan African Countries (IDA), 2019

Source: CPIA Database. There is a need to strengthen health systems The region’s IDA countries entered the COVID-19 pandemic with significant vulnerabilities to the management of a health emergency, reflected in low health coverage, inadequate government spending on health, and elevated out-of-pocket health payments by citizens. Overall, countries in Sub-Saharan Africa have severe weaknesses in their ability to prevent, detect, and respond to health emergencies. They also display severe gaps in health care systems, such as health care capacity in clinics and hospitals, medical personnel deployment, access to health care and infection control practices. Global Health Security Index, 2019

Source: https://www.ghsindex.org

The importance of protecting human capital The COVID-19 pandemic is likely to impact human capital including through disruptions in the provision of essential non-pandemic health services, income shocks, and mandatory school closures. In many health systems in the region’s IDA countries, the fight against the COVID-19 pandemic is expected to shift resources away from other essential health services due to their limited fiscal space, while in most countries lockdowns have led to loss of in-

come for poor families without formal jobs and employment-based social protection, and school closures. Child mortality could rise due to the disruption of maternal and child health services. Data suggest that, across the Africa region, about 252 million learners have been affected by COVID-19-driven school closures, which are likely to worsen learning outcomes. These disruptions to essential health and education services threaten the ability of IDA countries in the region to build the human capital they need for their development. By protecting human capital now, IDA countries in the region will be able to recover and sustain growth post COVID-19. This highlights the need for government policies to support vulnerable households, protect livelihoods, ensure access to education, and strengthen digital connectivity.

Additionally, the average scores for the other clusters decreased. Due to a decline in the quality of the trade policy framework and further weakening of the financial sector in several countries, average scores for structural policies (Cluster B) decreased after remaining steady for several years. In social inclusion (cluster C), the decrease reflected weaker performance on human capital development, especially in the quality of health services. Public sector management and institutions (cluster D) scores, which had been lagging behind all other clusters, further decreased in 2019, as the efficiency of revenue mobilization and quality of public administration deteriorated in many countries. Decreasing Trends in CPIA Cluster Scores

Human Capital Index, 2018

Source: CPIA database. Source: The Human Capital Project, World Bank, 2018. Note: Country scores vary between 0.1 (lowest) and 1.0 (highest).

Gains in fiscal policy and debt management, but elevated debt vulnerabilities The CPIA is made up of 16 criteria grouped into four clusters: economic management, structural policies, policies for social inclusion and equity, and public sector management and institutions. The average scores for the economic management (cluster A) remained unchanged from last year, reflecting gains in fiscal policy and debt management in several countries. Under Cluster A measures, the average fiscal policy score stayed at 3.0, signaling a stabilizing trend. Debt policy and management scores had been trending downward, but steadied in 2019. In many countries, medium-term debt strategies were adopted and implementation capacity increased, strengthening debt management functions. Nevertheless, debt vulnerabilities remained elevated, with many countries at high risk of debt distress. Inconsistencies between monetary policy frameworks and price stability goals contributed to a decrease in average monetary and exchange rate scores.

Fragile countries continued to lag behind non-fragile countries across every cluster The gap between fragile and non-fragile countries was particularly large in economic management and structural policies. In economic management, fragile countries lagged non-fragile countries on the quality of their monetary and exchange rate policies and debt management frameworks. On the structural policies cluster, the difference in scores was largest on the trade criterion. Fragile countries’ scores were also notably weaker on gender equality and property rights, and rulebased governance. Figure 25: CPIA Scores, by Country Group and Cluster, 2019

Source: CPIA database.

FRIDAY AUGUST 14, 2020

Investment Update

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FRIDAY AUGUST 14, 2020

Investment Update

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FRIDAY AUGUST 14, 2020