Business24 Newspaper - August 21, 2020 by Business24 Online

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FRIDAY AUGUST 21, 2020

Noguchi tests rapid PCR kit ahead of planned airport re-opening GNPC to seek new revenue streams as COVID-19 impacts oil output The Ghana National Petroleum Corporation (GNPC) says it will pursue diversified revenue generation sources following a 15 percent reduction in oil production from the country’s oil fields in the wake of the coronavirus outbreak. BY BENSON AFFUL

By Dominick Andoh

he Noguchi Memorial Institute for Medical Research of the University of Ghana is currently testing the efficacy of a COVID-19 Polymerase Chain Reaction (PCR) Detection Kit, to be used for testing in-bound international passengers when the airport is reopened next month. An efficient and reliable COVID-19 PCR Detection Kit is key to any plans of re-opening the country’s airport for international travel, following the decision of the President, Nana Addo Dankwa Akufo-Addo, to tie the re-opening of Terminal 3 of the Kotoka International Airport (KIA), possibly on September 1, to the country’s ability to test each passenger upon arrival. Business24 sources have reliably confirmed that the trial of the kit is expected to be completed within days and a decision made on the final modalities for the re-opening by August 26, 2020. Preliminary COVID-19 safety modalities under

discussion require departing travellers to show proof of a negative PCR test before being allowed to access the departure hall of Terminal 3—which is used for international operations—and to undergo temperature checks at the entrance and wear face masks throughout their pre-departure formalities. Arriving passengers will have to take a PCR test at the upper arrival section of Terminal 3. It may take up to 30 minutes for the result of a test to be known. The passenger is also to bear the cost of the COVID-19 test, estimated at between GH¢250GH¢500. Only in-bound passengers with negative PCR tests will then be allowed to descend to the arrival hall to complete their arrival formalities and exit the terminal. The other two options on the cards include allowing arriving passengers with credible PCR test results from specialised hospitals in their place of embarkation to fill out a comprehensive form MORE PAGE 2

.. PAGE 3

Body to regulate safe, quality drugs on the continent gets legal nod .. PAGE 3

BY EUGENE DAVIS

ECONOMIC INDICATORS

MPS terminal 3 breaks the all-time productivity record on MSC LIVORNO

Ghana Infectious Disease Centre receives IFC EDGE certification

*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:

GOLD $/TROY OUNCE

.. PAGE 5

GHc 5.13*

INTERNATIONAL MARKET BRENT CRUDE $/BARREL NATURAL GAS $/MILLION BTUS

.. PAGE 5

0.9%

CORN $/BUSHEL

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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FRIDAY AUGUST 21, 2020

EDITORIAL

Wash your hands 2

Cover your cough

All possible angles must be covered in airport re-opening The possibility of opening the Kotoka International Airport on September 1, 2020 for scheduled international flights after a fivemonth border closure has been welcomed by the travelling public and airlines operating in the country. However, given the potential for a second wave of the COVID-19 pandemic, all possible safety precautions must be taken in order to ensure smooth operations and contain the any potential spread. Safety must be paramount. Indeed, the renowned medical facility, the Noguchi Memorial Institute for Medical Research of the University of Ghana, is currently testing the efficacy of a COVID-19 Polymerase Chain Reaction (PCR) Detection Kit, to be used for

testing in-bound international passengers when the airport is reopened next month. The trial of the kit is expected to be completed within days and a decision made on the final modalities for the re-opening by August 26, 2020. It must be said that the reopening of the airport would not be smooth sailing and the major stakeholders must ensure a comprehensive solution that ticks all the safety boxes and is acceptable to all, given the current global pandemic that has disrupted the aviation world. The Board of Airlines Representatives, Ghana (BARGH)—made up of country managers of airlines—and the Airport Operators Committee

(AOC)—made of airport managers responsible for airport operations—have called for adequate simulation exercises to ensure a smooth take-off after re-opening. “The same way we did a simulation exercise before the re-opening of Terminal 3, I personally think we should take time to do same for the re-opening of the airport for international operations,” Ahmed El-Banhawy, Egypt Air Country Manager, told the Business24. We agree with the need for a comprehensive simulation exercise to ensure all loose ends are tied before the restart of international flights.

Noguchi tests rapid PSR kit ahead of planned airport re-opening CONTINUED FROM COVER

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)

detailing their physical home address, work address and other necessary details. Subsequently, a specially designed technology will be deployed to track and monitor them while the new PCR test results are released within 24 hours. Proponents say this option will prevent congestion at the airport and facilitate the process, but it is unlikely to be accepted given the stance by President Akufo-Addo that all persons arriving must be tested to prevent a second wave of COVID-19 infections in the country. The option of a 24-hour quarantine in hotels upon arrival has also been called into question due to the limited hotel rooms available to accommodate the thousands of passenger that use the KIA on a daily basis. In 2019, about 8,000 people used the KIA on a daily basis. Overcrowding, flight delays present more challenges The Ministry of Health on Thursday said it will fully cooperate with the airport’s management to develop the enabling protocols for ensuring passengers’ and staff’ safety. It said the airport’s management must ensure that wearing of face masks is compulsory for all arriving and departing passengers; ensure there is no congestion at all

sections of the airport; and ensure social distancing at the facility. However, airlines have raised concerns about how to avoid overcrowding during the peak time of between 6pm-11pm at the terminal. Major international airlines servicing the KIA fly into Accra in the evening (6pm-10pm), transporting thousands of passengers who may crowd the international arrivals area and stress port health officials conducting the PCR tests, possibly creating a chaotic situation. The suggestion that arriving passengers should be disembarked in batches upon arrival, operators say, will create undue delays for airlines. Typically, wide-bodied aircraft operators that transport between 280-300 plus passengers have a turnaround time of about 75 minutes, but if they are to disembark passengers in batches, they may require up to two hours in turnaround time. This may likely disrupt connecting flights at their home-base. The Board of Airlines Representatives (BARGH)—made up of country managers of airlines—and

the Airport Operators Committee (AOC)—made of airport managers responsible for airport operations— have called for adequate simulation exercises to ensure a smooth takeoff after re-opening. “The same way we did a simulation exercise before the re-opening of Terminal 3, I personally think we should take time to do same for the re-opening of the airport for international operations,” Ahmed El-Banhawy, Egypt Air Country Manager, told the Business24.

FRIDAY AUGUST 21, 2020

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GNPC to seek new revenue streams as COVID-19 impacts oil output BY BENSON AFFUL

General Manager, Commercial at GNPC, Joseph Dadzie said the outbreak of the pandemic has led to a 30 percent shortfall in the corporation’s revenue compelling it to revise its expenditure downwards by 34 percent. In order for GNPC to stay capitalised, he said the corporation will pursue diversified revenue generation sources, saying “diversification is necessary for long-term survival of the corporation.” “If your only source of income is from the selling of oil and in this COVID-19 times where the price of oil has plunged into an all-time low, then you will be faced with revenue challenges. The corporation is focused on strengthening its accelerated

growth strategy by consolidating its operatorship drive for effective financial sustainability and independence to take commanding lead in the upstream petroleum sector in Ghana,” Mr Dadzie added. Speaking at the Natural Resource Governance Institute (NRGI) National Dialogue on GNPC’s Sustainability, Mr. Dadzie said the GNPC also wants to limit its reliance on expatriates and invest in adequate human, technical and commercial resources. The move, he said, is to ensure that the sector, which is capital intensive, can also create jobs for Ghanaians. The mid-year budget revealed a total of US$80.41million of the total petroleum receipts for the first half of 2020 was transferred to GNPC. The upstream petroleum sector,

which accounts for about 7 percent of the government’s total revenue, is seeing challenging times not just due to lower oil prices, but also because of reduced production levels by Tullow Oil, operator of Jubilee, Ghana’s first oil field. The lower anticipated revenue for 2020 has also led to reductions in budget expenditures and transfers to the Ghana Stabilisation and

Heritage funds. Government’s 2020 budget was based on an oil-price assumption of US$62.6 per barrel, and total petroleum revenue was projected at US$1.6 billion. However, crude oil prices dropped sharply to record lows following the outbreak of the coronavirus disease and a price war between leading producers Russia and Saudi Arabia.

Body to regulate safe, quality drugs on the continent gets legal nod BY EUGENE DAVIS

Parliament has approved for the establishment of an African Medicines Agency (AMA) as a regulatory body in Ghana that will ensure the country conforms to the best practices and standards for medical products and health technologies. Ghana is presently lobbying to have the agency set up in the West African country, which will provide leadership to ensure that there are harmonized and strengthened systems, which governs the regulation of medical products and health technologies on the African continent, a parliamentary report has revealed. According to the report of the health committee on the treaty for the establishment of AMA, people living in Ghana will be protected from the risks and dangers posed by substandard. Moving for the approval of the treaty, chairman of parliament’s health committee, Dr.Kwabena Twum-Nuamah indicated that the coordination of the African Medicines Regulatory Harmonisation initiative under

the leadership of AMA will provide improved sovereign control and regulation of medical products and health technologies. The Agency will guarantee the use of institutional, scientific and regulatory resources on the continent to improve access to safe, efficacious and quality medical products and health technologies. It will also facilitate expeditious approval of products that address the health needs of the African populace especially for diseases that disproportionately affect Africa. It is therefore necessary that Ghana ratifies the treaty, to further enhance and deepen the already existing relationship it has with member states based on their collective efforts towards improving the quality of life of their people. Among the functions to be performed by AMA include ; coordinate and strengthen ongoing initiatives to harmonise medical products regulation and enhance the competence of good manufacturing practices inspectors, coordinate the collection, management,storage

and sharing of information on all medical products including substandard and falsified medical products with all its state parties and globally. The body is also expected to provide guidance on the regulation of traditional medical products, develop systems to monitor,evaluate and assess the comprehensiveness of national medical products regulatory systems with the view of recommending measures that will improve efficiency and effectiveness. The ratification of the treaty supports the operationalization of the Africa Continental Free Trade Agreement (AfCFTA) which currently has its secretariat in Ghana. It is the vision of government to guarantee the right to health of all people living in Ghana, through an effective and efficient health sector with sustainable ability to deliver affordable, equitable and accessible healthcare. The government is also committed to supporting the health sector to deliver cutting edge services to the citizens as outlined in the 2018-2023 National Public Sector

Dr. Kwabena Twum-Nuamah is confident Ghana can get the nod to establish the agency in the country

Reform Strategy(NPSRS) because effective health care delivery system is critical for national growth and development. The African Union(AU) through its expert committees recognizes that access to medicines is critical for attaining the health care goals of member states. African countries also face the challenges posed by the unavailability of medicines and vaccines during public health emergencies of international concern(pheic).

FRIDAY AUGUST 21, 2020

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MPS terminal 3 breaks the all-time productivity record on MSC LIVORNO Meridian Port Service (MPS) reached a new level of container handling productivity on vessels by exceeding the previous record of 112 moves/hour which was achieved on MSC ALTAIR that berthed at Terminal 3 on May 15, 2020. The new vessel productivity record of 139.91 moves/hour on MSC LIVORNO is from first lift to last lift and operationally recognised as 145.86 moves/hour after adjusting the permissible deductible times. This has so far been logged as the all-time record for Tema Port and may certainly be by far the best on the West African Coastline. MSC LIVORNO is flying the German Flag and among a fleet of Ultra Large Container Vessels (ULCV) deployed on the MSC’s Africa Express (AFEX) weekly service into Ghana. Her capacity is 14,000 TEUs and Gross Tonnage of 153,115. Her length overall (LOA) is 366 meters and she is 51 meters wide. The CEO of MPS, Mr. Mohamed Samara remarked, “It has been identified by trade experts that one of the key factors for the realization of the vision of the Africa Continental Free Trade Area (AfCFTA), is the development of significant trade and transport infrastructure. MPS Terminal 3 is first amongst these infrastructures; our progressive service efficiency

to shippers and consignees as well as superb vessels’ productivity levels has resulted in direct vessels’ calls with deep drafted vessels (avoiding hubs) hence shorter transit times.” With MPS Terminal 3 positioning itself as an effective transhipment hub providing connectivity between the seaports of Africa and the hinterland markets, Ghana through this will be in the lead for Africa in reducing to the

barest minimum existing intracontinental trade barriers. This will boost economic development and fit the continent to harness all the diversified economic benefits inherent in the AfCFTA. He described the recent recordbreaking accomplishments as a stellar performance by the operations team. “We are proud to achieve this milestone with no incidents or accidents, respecting all safety protocols and for

creating a worthy safety culture that safeguards all workers and company assets. On behalf of the Shareholders, Board and Management of MPS, I would like to take the opportunity to congratulate the entire MPS team, especially the Operations Management, Supervisors, Planners, Equipment & Crane Operators, Truck Drivers and all the support team that worked on the vessel.” Said Mr. Samara.

Ghana Infectious Disease Centre receives IFC EDGE certification The Ghana Infectious Disease Centre, a private sector driven facility, built in response to the COVID-19 pandemic, has Thursday, received certification from the International Finance Corporation (IFC) Excellence in Design for Greater Efficiencies (EDGE) green building program. The 100-bed facility would reduce energy use by about 23 per cent due to energy-saving lighting and air conditioners together with specially insulated walls and ceilings. The building would also reduce water use by almost a third with low-flow faucets in bathrooms, dualflush toilets, and water-efficient landscaping. Mr Senyo Hosi, Managing Trustee of the Ghana COVID-19 Private Sector Fund, which financed the Centre, said, “Receiving IFC’s EDGE certification substantiates the promise we made to deliver a world-class facility that will serve Ghana in a sustainable way and at a lower cost.” Mr Ronke Ogunsulire, IFC Country Manager Ghana, said, “IFC is proud to support Ghana’s fight against COVID-19 through the EDGE

certification of this historic centre. The money saved from reduced utility costs can be used for critical items such as additional medical equipment to contribute to saving even more lives.” Green buildings were considered an important component of Ghana’s transition to a lower-carbon future

as specified in the country’s agreed contributions under the Paris Agreement, the framework for the coordinated international effort to tackle climate change. IFC’s EDGE program was launched in 2014 to mainstream and support the construction of green buildings to help fight climate change. The

program is active in 170 countries. It is a member of the World Bank Group. In Ghana, EDGE has certified eight large buildings since 2017 in the health, hospitality, retail, and financial sectors, and was encouraging developers to adopt the green building techniques.GNA

FRIDAY AUGUST 21, 2020

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Ashesi D:Lab Completes Future Learning Hack 2 of 3

shesi Design Lab, the design thinking and innovative solutions hub of the prestigious Ashesi University organized the Future Learning Hackathon 2 of 3 to invite brilliant ideas and innovative solutions to enhance the students’ ‘campus life’ even whilst they study from home. The advent of the COVID-19 pandemic affected life in all circles, especially that of students and academic institutions by leading to the temporary closure of academic institutions. However, for several months now in Ghana and the world over, the educational system has since been disrupted with the closure of school campuses due to the pandemic. Most universities had to move their classes online providing a varying level of engagement with their students in the online format. For many students, being home is complicated; the life at home and that on campus are worlds apart. With another academic year drawing close in September, and the dread of reopening schools online, students wonder how they are going to experience ‘campus life’ from the comfort of their homes. This was the rationale behind the Future Learning Virtual Hackathon 2 of 3 – to provide an opportunity for this challenge to be addressed with ingenious solutions incorporating the use of Design thinking. The Ashesi Design lab in partnership with lead sponsor Hatchery Positivo BGH, brought together enthusiasts from different academic disciplines in 17 groups (minimum of 3 individuals to a maximum of 5) to partake in the virtual competition. About 26% of the participants in this version of the series of hackathons were female. Process and Judging 17 teams after the close of applications had registered for the hackathon by 8th August 2020. These teams were engaged, after registration and selection, in a virtual orientation and preparation session by the organizers. This continued with a Design Thinking session led by Eugene Eluerkeh (who is he?) after which mentors assigned to various teams. The teams under the guidance and mentorship of their mentors found ways to fine-tune ideas and work on their projects and solutions in preparation towards the big day, Pitch Sessions. Pitch Sessions on the 14th of August was the time assigned for each and every team to present their unique solution to a judging panel. The Pitch Session was held with the teams presenting their

solutions to a judging panel via Zoom. The first session had a total of 8 teams present to 5 judges with the second session having 9 teams present to a panel of 5 judges. All the solutions and ideas by each and every team were carefully evaluated and critiqued by the judging panel on basis of creativity, innovation, and feasibility. Mr Richard Osei-Anim, one of the judges, stated that he looked forward to a team that would present a decent solution or idea that could be scaled up. After 3 intense hours of display of prowess in ingenuity and careful deliberations all on tackling the challenge of enhancing ‘campus life’ against a digital and virtual divide, the judges announced three teams as winners based on the clarity presentation, scalability of their solution, and overall outlook. The judging panel comprised of innovators and experts in various fields namely: Joseph Akayesi, Felix Pobee, Blessed S. Agyeman, Abena Engmann, Abel Ohene

Acquaye, Richard Osei-Anim, Daniel Kwasi Yeboah-Kordieh, Samuel Nkoom Amoah, John Eyo, and Akua Ampah. Winners The winning solution at the end of Future Learning Virtual Hackathon 2 of 3 was a web application that had a feel of campus life by making users experience lecturerstudent interactions while having a feel of activities and services on campus from the comfort of the user’s home. The winning teams who produced winning solutions were: SUNTAA (winning team), AWESOME THINKERS NETWORK (1st Runners Up), and EXCELSIOR (2nd Runners Up) The three (3) winning teams received cash prizes of GHS 1400, GHS 1000, and GHS 600 respectively with mentorship and advisory support to scale up their ideas to market, and gift vouchers from Feenix and Doughman foods as well as the opportunity to network Way Forward Amidst the challenges of

organizing and running a virtual hackathon, the Future Learning Hackathon 2 of 3 was a great success and a noteworthy improvement to the previous edition. Having all these feasible, scalable, and innovative ideas see the light of day and go to enhance the quality of life of students during a virtual period of schooling is a mark to validate the success of the hackathon. We cannot wait for the final hackathon of this hackathon series. Appreciation goes out to all sponsors and partners: Hatcthery Positivo BGH, Feenix, Doughman Foods, Veggies and Grills restaurant; and media partners: Business 24 E-newspaper, Ghana Web and Africa Digital Festival. As well, heartfelt gratitude to all judges, mentors, participants, and organizing team members for the hard work, dedication and support throughout the period of implementation, planning, and execution.

FRIDAY AUGUST 21, 2020

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Building trust with courageous leadership BY PUNIT RENJEN

A few months ago, we imagined “thriving” as leading our organizations to a better normal after the COVID-19 pandemic. Yet our responsibilities as leaders now are further compounded by concurrent challenges of racial injustices, climate change, and economic uncertainties. Getting to “Thrive” appears more arduous and lengthier than many of us imagined … or hoped for The first wave and recurrences of COVID-19 continue to plague many parts of the world. Seventysix percent of companies and many geographies in our most recent analysis are still in the Respond and Recover phases of the crisis.1 In late July 2020, our biweekly Deloitte State of the Consumer Tracker told a tale of two worlds: increasing consumer anxiety in nine countries across five continents, including India, Chile, China, Australia, Spain, and the United States, but more positive sentiment in nine other countries (seven of which are in Europe).2 Varying epidemiology curves and local responses further complicate matters for multinationals, which can’t apply uniform playbooks and investment priorities across the globe. Even companies and geographies that have entered the Thrive phase realize that we are all in this long journey together, because our prospects are inextricably linked. The future of each of our organizations, though, is not preordained. As resilient leaders, one of our most critical roles right now is to sustain: to sustain our people, many of whom are experiencing not only fatigue but more stresses than they ever have; to sustain our organizations in continuing to create value for all stakeholders; and to sustain society as it experiences multiple existential threats. But just as important, we must also sustain our own ability to lead so that we can continue to serve over the long journey ahead. Pondering these four imperatives as Deloitte Global CEO, I wanted to share my thoughts with you as fellow leaders on this journey, as well as some questions we should all be asking ourselves. Sustaining our people Our people are undergoing unprecedented levels of stress and uncertainty: workers who have suffered deep personal losses from COVID-19 and/or racial injustices; parents stretching to navigate childcare and major uncertainties over schooling

responsibilities while still meeting work commitments; even the loss of basic grandchild-grandparent physical connections. It requires both empathy and courage on our part to lead them forward. Am I walking this road alongside our people, our clients, and our ecosystem partners, and mirroring their needs? As leaders, we need to empathize with and acknowledge the myriad challenges our people are currently coping with— many of which have no end in sight. Psychologists describe “ambiguous loss” as losses that are inexplicable, outside one’s control, and have no definitive endpoint.3 Typically experienced when loved ones are missing or suffering from progressive chronic illness, the uncertainties our colleagues are enduring today surely also constitute ambiguous loss:4 The loss of our familiar way of being in the world is difficult to understand, beyond our control, and uncertain as to when we can return to some semblance of normal. As leaders, we need to empathize with and acknowledge the myriad challenges our people are currently coping with—many of which have no end in sight. As we discuss in our Bridge across uncertainty guide for leaders, there are three types of stress: good stress, tolerable stress, and toxic stress, the last of which is critical to relieve before people become overwhelmed.5 With both ambiguous loss and toxic stress, the better definition of an endpoint and a reduction in uncertainty are important ways we can support our teams. For example, Deloitte has hosted Zoom-based workshops where a cross-section of our people helped to inform return-to-the workplace programs—giving them a greater sense of control. Likewise, sponsoring projects that have a defined endpoint and outcome— where teams can declare that they are “done”—also helps to counter both ambiguous loss and toxic

stress. Am I engaging in—and modeling— courageous conversations to ensure rapid, impactful decisions? One of the five qualities of resilient leaders we noted in the article we released at the outset of the COVID-19 pandemic6 is speed over elegance—taking decisive action with courage based on imperfect information, knowing that speed is essential. “The need to make critical decisions under conditions of extreme uncertainty” is the core context for the emotional fortitude that is part of the inner work of the CEO.7 Courageous conversations are at the heart of such decisive, bold leadership actions, which are even more critical now to sustaining our people. Such conversations enable us to deliver truthful messages and real-time feedback amid the crisis, and require courage: To address difficult situations such as business closures, layoffs, and furloughs rather than ignoring them and hoping they go away To decide and implement a course of action, even when unpopular To speak the truth about the situation, why each decision was made, and acknowledge the implications And especially: To listen to the minds and hearts of our people—even if the message is something you might not be comfortable hearing. This can not only help us to formulate a more well-informed decision, but is also essential to sustaining the organization. Sustaining our organisations Courage also means making shortterm decisions with the long view in mind. Now more than ever, our organizations need to preserve and create value over the long term for all our stakeholders by supporting employment, our industries, the community, and the overall economy. Am I playing offense, not just defense? In the Respond phase of the crisis, most organizations’ leaders

found they needed to play defense: keeping their values, their people, their customers, and their business at the forefront. But to thrive in the next normal, we will have to play both defense and offense, working to protect our people and our business, but also taking the longer view. We need to lean into the wind and make contrarian moves now so we can come out of the crisis with momentum and a competitive edge. Many companies will play defense, not offense. Winners will do both.8 In a June 2020 survey sponsored by Deloitte and Fortune of more than 140 CEOs in the global Fortune CEO community, 77% said that the pandemic created significant new business opportunities to play offense.9 Prior to the pandemic, a study of C-level executives found that 56% prioritized investments to protect their organizations from disruption by competitors (playing defense), while just 26% prioritized investments to disrupt competition with new ways of doing business (playing offense).10 This ratio has held close to 2 to 1 for the past three years of this survey. Am I proactively envisioning the business models toward which I need to steer the organization? Crises typically prompt major opportunities such as accelerating innovations, expanding ecosystem relationships, anticipating changing market structures, and creating new business models. For example, the current health and social crises are prompting CEOs to rethink their business models. What functions do I need to reshore to build resilience? What functions should I further outsource to provide redundancy and rapid adaptability? Which segment(s) of my workforce can be permanently virtualized, and what digital/cloud technologies should I accelerate to get there?11 Many of us watched silos crumble almost overnight in the rush to respond to COVID-19: Teams became more cross-functional, while ideas, experiences, resources, and expertise were quickly shared in ways that enabled organizations to take more informed, holistic actions. Which of those barriers can be permanently removed? TO BE CONTINUED

FRIDAY AUGUST 21, 2020

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America’s New Debt Bomb BY PUNIT RENJEN

he United States today not only looks ill, but dead broke. To offset the pandemic-induced “Great Cessation,” the US Federal Reserve and Congress have marshaled staggering sums of stimulus spending out of fear that the economy would otherwise plunge to 1930s soup-kitchen levels. The 2020 federal budget deficit will be around 18% of GDP, and the US debt-to-GDP ratio will soon hurdle over the 100% mark. Such figures have not been seen since Harry Truman sent B-29s to Japan to end World War II. Assuming that America eventually defeats COVID-19 and does not devolve into a Terminator-like dystopia, how will it avoid the approaching fiscal cliff and national bankruptcy? To answer such questions, we should reflect on the lessons of WWII, which did not bankrupt the US, even though debt soared to 119% of GDP. By the time of the Vietnam War in the 1960s, that ratio had fallen to just above 40%. WWII was financed with a combination of roughly 40% taxes and 60% debt. Buyers of that debt received measly returns, with the Fed keeping the yield on one-year Treasuries at around 0.375% – compared to the prevailing 2-4% peacetime rates. Ten-year notes, meanwhile, yielded just 2%, which actually sounds high nowadays. These US bonds, most with a nominal value of $25 or less, were bought predominantly by American citizens out of a sense of patriotic duty. Fed employees also got in on the act, holding competitions to see whose office could buy more bonds. In April 1943, New York Fed employees snapped up more than $87,000 worth of paper and were told that their purchases enabled the Army to buy a 105-millimeter howitzer and a Mustang fighter-bomber. Patriotism aside, many Americans purchased Treasury bonds out of a sheer lack of other good choices. Until the deregulation of the 1980s, federal laws prevented banks from offering high rates to savers. Moreover, the thought of swapping US dollars for higheryielding foreign assets seemed ludicrous, and doing so might have brought J. Edgar Hoover’s FBI to your door. While US equity markets were open to investors (the Dow Jones Industrial Average actually rallied after 1942), brokers’ commissions were hefty, and only about 2% of American families owned stocks.

Investing in the stock market seemed best-suited for Park Avenue swells, or for amnesiacs who forgot the 1929 crash. By contrast, a majority of American households own equities today. In any case, US household savings during WWII were up – and largely in bonds. But Treasury paper bore a paltry yield, a distant maturity, and the stern-looking image of a former president. How, then, was the monumental war debt resolved? Three factors stand out. First, the US economy grew fast. From the late 1940s to the late 1950s, annual US growth averaged around 3.75%, funneling massive revenues to the Treasury. Moreover, US manufacturers faced few international competitors. British, German, and Japanese factories had been pounded to rubble in the war, and China’s primitive foundries were far from turning out automobiles and home appliances. Second, inflation took off after the war as the government rolled back price controls. From March 1946 to March 1947, prices jumped 20% as they returned to reflecting the true costs of doing business. But, because government bonds paid so much less than the 76% rise in prices between 1941 and 1951, government debt obligations fell sharply in real terms. Third, the US benefited from borrowing rates being locked in for a long time. The average duration of debt in 1947 was more than ten years, which is about twice today’s average duration. Owing

to these three factors, US debt had fallen to about 50% of GDP by the end of Dwight Eisenhower’s administration in 1961. So, what’s the lesson for today? For starters, the US Treasury should give tomorrow’s children a break by issuing 50- and 100-year bonds, locking in today’s puny rates for a lifetime. To those who would counter that the government might not even be around in 50 or 100 years, it is worth noting that many corporations have already successfully auctioned long-term bonds of this kind. When Disney issued 100-year “Sleeping Beauty” bonds in 1993, the market scooped them up. Norfolk Southern enjoyed a similar reception when it issued 100-year bonds in 2010. (Imagine, buying century bonds from a railroad.) And Coca-Cola, IBM, Ford, and dozens of other companies have issued 100-year debt. Notwithstanding the fact that many institutions of learning have been compromised by the pandemic, the University of Pennsylvania, Ohio State University, and Yale University also have issued 100-year bonds. And in 2010, buyers even grabbed Mexico’s 100-year bonds, despite a history of devaluations stretching back to 1827. More recently, Ireland, Austria, and Belgium all issued 100-year bonds. To be sure, a longer duration will not be enough to solve the debt problem; the US also desperately needs to reform its retirement

programs. But that is a discussion for another day. Finally, what about the post-war experience with inflation? Should we try to launch prices into the stratosphere in order to shrink the debt? I advise against that. Investors are no longer the captive audience that they were in the 1940s. “Bond vigilantes” would sniff out a devaluation scheme in advance, driving interest rates higher and undercutting the value of the dollar (and Americans’ buying power with it). Any effort to inflate away the debt would result in a boom for holders and hoarders of gold and cryptocurrencies. Unlike military campaigns, the war against COVID-19 will not end with a bombing raid, a treaty, or a celebrations in Times Square. Rather, the image we should bear in mind is of a ticking time bomb of debt. We can defuse it, but only if we can win the battle against policy inertia and stupidity. This war won’t end with a bang, but it very well could end in a bankruptcy.

Todd G. Buchholz, a former White House director of economic policy under George H.W. Bush and managing director of the Tiger Management hedge fund, was awarded the Allyn Young Teaching Prize by the Harvard Department of Economics. He is the author of New Ideas from Dead Economists and The Price of Prosperity. Copyright: Project Syndicate, 2020. www.project-syndicate.org.

FRIDAY AUGUST 21, 2020

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Vodafone’s Homecoming Initiative has decongested our choked hospitals – Dr Kuma-Aboagye Dr. Patrick Kumaw-Aboagye, the Director-General of the Ghana Health Service (GHS) has commended Vodafone Ghana Foundation for its “Homecoming” initiative, which has helped to decongest choked health facilities in the country. The Homecoming initiative enables the Foundation to pay the medical bills of financially challenged and vulnerable patients at hospitals, who are not relieved to go back home after receiving healthcare due to their inability to pay their medical bills. He said hospitals were congested as a result of patients owing medical bills and that made it difficult for the facility to admit new patients and offer them healthcare. Dr. Kuma-Aboagye said this at the virtual launch of the ‘Middle Belt Homecoming Initiative’ in Accra to settle medical bills of patients in the Ashanti, Oti, Bono Ahafo, Bono East, and Western Regions. Conditions of beneficiary patients included burns and scalds, caesarian sessions, snake bites, amputations, spinal surgeries, and glaucoma. He commended Vodafone Ghana for not only settling the medical bills of needy patients but registering them onto the National

Health Insurance Scheme (NHIS) and renewing the existing but expired cards of other patients and as well providing them with hand sanitizers and face masks to protect themselves of COVID-19. “Vodafone Ghana has taken leadership in helping the government to control health problems in the country and this will make it easier for Government to promote universal health coverage in the country,” he said. Dr. Kuma-Aboagye encouraged the public to take advantage of the NHIS, especially in this period of COVID-19 to enable them to properly access healthcare. Mr. Amaris Nana Adjei Perbi, the Lead of Vodafone Ghana Foundation, explained that 106 patients were expected to be discharged in the middle bet regions. A month ago, similar action was taken to discharge 98 patients in the Savannah, Northern, Upper East, and Upper West Regions. A total of nine health institutions, he said, had been identified as beneficiaries in the middle belt initiative. Mr. Perbi noted that in the Ashanti Region, beneficiary hospitals were the Komfo Anokye Teaching Hospital and the Kumasi South Regional Hospital, and in the Bono

Region, beneficiary hospitals were the Sunyani Regional Hospital. The Asunafo South District Hospital and Goasu Municipal Hospital in the Ahafo Region and the Holy Family Hospital in the Bono East Region would benefit from the initiative. In the Oti Region, beneficiary hospitals were the Worawora Government Hospital and the Jasikan District Hospital, while the Western North Region had the Bibiani Government Hospital as the beneficiary facility. Dr. Mrs. Irene Stella AgyenimBoateng, a member of the Vodafone Ghana Foundation Board, said the middle belt initiative, was part of the activities outlined on the calendar of Vodafone Ghana Foundation to celebrate the ‘World Humanitarian Day’ which falls on August 19, of every year. She said many looked forward to the homecoming initiative because many of the patients who were detained at hospitals were the breadwinners of their families and hence their absence was a great loss to their families. The step, she said, would ease the burden on hospital finances and facilities. Dr. Isaac Secorm, the Deputy Director of Clinical Care, Worawora Government Hospital,

thanked the Foundation for the support, adding that: “We have 93 percent of our clients on the NHIS, however, many of them have their cards expired, even though they need to undergo surgeries. So this will be or great help to us,” he said. Professor Baffour Opoku, a Substantive Medical Director of the Komfo Anokye Teaching Hospital, said the hospital which has a 1,200-bed capacity, had listed almost 60 patients who needed financial support to reunite with their families. The initiative, he said, would, therefore, help treated patients to go home and make way for new patients to access healthcare. Dr. Joel Afi Duah, the Medical Superintendent of the Asunafo South Government Hospital said due to the big challenge the facility faced in dealing with patients who were unable to pay their bills, the Hospital was training them in various vocational skills like detergent making to be able to generate funds to make their payments and cater for their families.The support, by the Foundation, would, therefore, help the patients to revive their lives. GNA

NLA to earn GH¢30million from KGL Technology collaboration for 2020 The National Lottery Authority (NLA) will receive a financial commitment of GH¢30 million from the licensing of KGL Technology Limited for the year 2020. A statement signed by the Head of the Public Relations Unit of the NLA and copied to the Ghana News Agency in Accra said: “This achievement is breathtaking and unprecedented in the annals of the Authority.” The statement said the ability of the National NLA and KGL Technology Limited to raise GH¢30 million for the Consolidated Fund during this era of the COVID-19 would be a remarkable achievement for both institutions. It said the implementation of the Digital Policy was supportive and critical for the continuous survival of the lottery industry especially in this era of the COVID-19 and the government was committed to a robust digital framework that supports digitization and digitalization of the economy aimed at benefiting every citizen. The statement said the NLA since 2008 has been trying to digitalised

its operations, but to no avail until the coming onboard of KGL Technology. According to the statement, the NLA short code of *959# was serving as an additional revenue stream that was augmenting the revenue generation capacity of the NLA. It said KGL Technology Limited paid an initial GH¢10 million as

part of the Licensing requirement and expected to make payments of another of GH¢10 million for the months of September and December, totaling GH¢30 million for the year 2020. KGL Technology Limited is a wholly owned newly Ghanaian licensed online Lotto Marketing Company responsible for the running of NLA’s official short

code *959#. The company core business mandate of KGL Technology is to advance the digitalization of lottery on behalf of the NLA in line with the digitalization policy of government. It would invest hugely into Corporate Social Responsibility (CSR) in line with its mission and vision for the industry. GNA

FRIDAY AUGUST 21, 2020

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A Healthy Improvement on GDP BY ANDREW SCOTT

any of the failures of GDP as a measure of economic performance are well known. Policymakers in search of an alternative should recognize the far-reaching power of healthy life expectancy as a measure not only of individual wellbeing, but of broader macroeconomic conditions as well. Dissatisfaction about GDP is growing. Many economists, policymakers, and other critics question the ability of this central measure of government and social success to recognize the welfare gains from technology, account for environmental degradation, or capture rising inequality. With developments in artificial intelligence and robotics poised to produce considerable labor-market churn while also boosting GDP – a process likely to be accelerated by the ongoing pandemic – these complaints will soon grow louder. Numerous alternative indicators have long been on offer, but one especially promising option is healthy life expectancy (HLE), a metric that is easily understood and that has obvious importance to each of us individually. Moreover, HLE is already being measured, and happens to address many of the factors that GDP might omit. Poor environmental conditions, for example, are not conducive to long, healthy lives. And there is plenty of evidence to suggest that individuals who are happy and fulfilled also tend to live longer and remain healthy for longer. Even more to the point, longer healthier lives connect back to GDP itself. Just as rising GDP helps to provide the resources needed to support health, healthy populations support stronger GDP. Moreover, by targeting HLE specifically, governments could shine a brighter light on the issue of economic inequality. Because the incomes of the very richest households may be several thousand times greater than those of the poorest households, average GDP is invariably larger than typical (median) income. But when it comes to life expectancy in the richest countries, the opposite is true. The outliers tend to be those who die young, so that typical (median) life expectancy is higher than average life expectancy. This means that raising the average HLE can be achieved by raising the HLE of those at the bottom of the health distribution to that of the typical (median) person. This not only makes targeting inequality more attractive, but does not require path-breaking medical innovations to achieve longer

lifespans – just the achievement of typical outcomes for more people. With this in mind, it is urgent to close the sizeable rich-poor lifeexpectancy gap – around 15 years – in the United States. As a metric for economic and social progress, targeting HLE implicitly acknowledges that aging is malleable (if it wasn’t, it wouldn’t be a viable target). It turns out that a range of behaviors and policies, as well as the environment we inhabit, influence how we age and how long we live. It is estimated that our genetics account for only one-quarter of the factors contributing to how we age. Given this malleability, it is crucial that governments focus on HLE for the maximum number of people. Such a focus would also help governments confront one of the biggest challenges of the future: societal aging. Given that every country in the world is expected to experience societal aging, focusing on how well we age becomes paramount. This age malleability requires drawing a distinction between chronological and biological measures of age and focusing on the latter. Yet, because so much government policy currently focuses on the non-malleable chronological metric, too many governments are unprepared for future demographic challenges such as overburdened health and pension systems. Rather than exploring ways to influence how we age, policymakers are focused almost entirely on the number of “old” people. But by targeting healthy longevity, they could

help more people lead longer, more productive lives, thereby minimizing the economic costs of societal aging. After the 2008 financial crisis, policymakers committed to doing “whatever it takes” to stabilize the financial system and restore GDP growth. A subsequent slowdown in trend productivity growth and the devastating global economic fallout from the current pandemic have produced numerous policy suggestions and unprecedented spending aimed at reversing trend slowdowns in GDP growth. By contrast, news of declining life expectancy in many OECD countries has not produced a similar outpouring of proposed solutions. How can we commit trillions of dollars to ensure that GDP is supported while doing so little to avoid declining life expectancy? Certainly, the response to COVID-19, where GDP has plummeted as a result of lifesaving measures, suggests that substantial policy measures to boost HLE are worthwhile. To operationalize HLE targeting, governments should follow Japan in establishing “longevity councils.” Once policymakers start focusing on the issue, they will realize three things. First, preventive health care is key. Around the world, health systems tend to be geared primarily toward medical intervention and disease response, rather than toward general health promotion. Second, and relatedly, many of the determinants of long, healthy lives fall outside the health system, and are connected to

work, education, and community, as economists Anne Case and Angus Deaton have shown in their work documenting “deaths of despair.” A policy focus on HLE therefore requires a crossdepartmental government approach The fact that today’s deaths of despair disproportionately affect middle-aged individuals points to the third realization: longevity is about all-of-life and not just endof-life outcomes. With the British government estimating that a newborn girl now has a one-infive chance of living to 100, it is critical that we expand our view of longevity to the entire life course. Measures targeting HLE must be inclusive across all age cohorts and focus on longevity, not just on the old. After all, today’s young people are tomorrow’s elderly, and all of one’s time on this planet matters. There are many metrics that governments could use to judge the success of their policies and the health of society. But whatever other measures they use, HLE deserves a central position in the policy mix. Few other variables are both as important for us individually and as effective in capturing broader macroeconomic benefits. Andrew Scott, is a Professor of Economics at the London Business School, is co-founder of The Longevity Forum and co-author (with Lynda Gratton) of The 100Year Life: Living and Working in an Age of Longevity.

FRIDAY AUGUST 21, 2020

Investment Update

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FRIDAY AUGUST 21, 2020

Investment Update

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FRIDAY AUGUST 21, 2020