Business24 Newspaper 11 February, 2022

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FRIDAY FEBRUARY 11, 2022

BUSINESS24.COM.GH

Friday February 11, 2022

GH₵2.6bn realised from banks to support 1D1F since 2017 – Trade Min

NO. B24 / 304 | News for Business Leaders

Appiatse Support Fund to receive US$5m out of US$6m Maxam fine

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Gov’t hunts for strategic partner for VALCO expansion

By Eugene Davis ugendavis@gmail.com

Samsung unveils revolutionary Galaxy S22, S22+ and Galaxy S22 Ultra

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he Minister of Lands and Natural Resources, Samuel Abu Jinapor, has reiterated government’s commitment towards the modernisation of VALCO to improve efficiency and increase its capacity and make it globally competitive.

According to him, the ministry is finalising a memo to Cabinet for approval to proceed with the search for a strategic investor to partner the Ghana Integrated Aluminium Development Corporation (GIADEC) in the modernisation and expansion of VALCO. Addressing the press during a working visit to the smelter on

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amsung has announced the release of the Galaxy S22, S22+ and Galaxy S22 Ultra. These ground-breaking new editions to the S Series feature premium cameras, superfast connectivity, long-lasting batteries1, and innovative new ways to share Cont’d on page 3

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PPA renegotiation saves nation US$13.2bn News desk report

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Societe Generale launches a new securities custody offer

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hana has saved about US$13.2billion in renegotiating power purchase agreements (PPA) with six different independent power producers (IPPs), the Finance Ministry in its latest investor call update has revealed.

The ministry, as part of efforts to assure investors and boost confidence in fiscal management

ociete Generale Ghana PLC is expanding its securities custody offering in Ghana, drawing on the expertise of Societe Generale Securities Services (SGSS).

Present in the country for nearly 20 years, Societe Generale Ghana is a key

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Editorial / News

FRIDAY FEBRUARY 11, 2022

Editorial

Tussle over controversial e-levy not healthy

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overnment appears bent on implementing the controversial electronic levy—a special tax on momo and other forms of electronic transaction—despite the stiff opposition from some quarters, whose concerns are being championed by the Minority NDC. Leading a demo yesterday, the opposition party echoed the voices of the masses to express their displeasure about the electronic tax even though the government continues to gain public buy-in through its ongoing townhall engagements.

Finance Minister Ken OforiAtta says the non-passage of this levy could have dire consequences on the economy.

Much of government’s youth-centric interventions is directly linked to the successful implementation of the levy, which is seen as an essential tool that will increase revenue to curb unemployment by investing in entrepreneurship, cyber security, digital and road infrastructure in the country.

The levy will also be the source of funding for state agencies that are pushing the nation’s digitalization and youth empowerment agenda such as the Data Protection Commission and the National Youth Authority.

“The E-levy will increase our tax to GDP from around 13percent to 16percent and above, which would ensure that we have the revenues to sustainably invest

in entrepreneurship, youth employment, cyber security, digital and road infrastructure,” adding that the e-Levy also provides a means for all Ghanaians to help support their country and grow this economy as compliant citizens, according to the minister.

Stakeholders in the financial sector, as well as telcos—initiators of mobile money—have come out emphatically to say that the disruptive levy will claw back the gains of digitalization and financial inclusion.

The e-levy is a bitter pill to swallow and we only hope that there will be consensus at the end of the day either on its abolishment or passage in the interest of nation building.

Gov’t hunts for strategic partner for VALCO expansion Continued from cover

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Wednesday, Mr. Jinapor noted that a retrofitted VALCO will play a significant role in the development of Ghana’s Integrated Aluminium Industry.

He further noted that the development of Ghana’s Integrated Aluminium Industry remains a priority of government.

“We are fully committed to realizing the vision of the President.

The instructions of the President could not have been clearer to us than they are now, and we are absolutely determined to work, as a Ministry, with GIADEC and VALCO to ensure that we realize President Akufo-Addo’s vision of building an integrated aluminium industry in Ghana so that we can ramp up our industrialisation agenda.

It is only through that we can create the hundreds, thousands and millions of jobs that our population so need dearly,” he said.

Mr. Jinapor stressed that the development of an integrated aluminum industry is a huge project and will require a collaborative effort and time to develop.

“We have to be very candid about the kind of task we have on our hands. It’s a very challenging one; it’s a really big undertaking.

It’s not impossible, it’s not unsurmountable but it will take a lot for us to build, eventually, this Integrated Aluminium Industry.

What should be assuring to our countrymen and women is the fact that, a framework has been

established, extraordinary work is being done on a daily basis, day and night, and the signals are looking very good” he added.

He commended management and board of the Ghana Integrated Aluminium Development Corporation (GIADEC), and the VALCO leadership for their enormous contribution in positioning the aluminium smelter as a viable business venture which is beginning to attract new investments.

Chief Executive Officer of GIADEC, Mr. Michael Ansah, who joined the Minister on his working visit to the wholly Ghanaian owned smelter emphasized that the modernisation and expansion of VALCO, to increase its capacity and upgrade equipment to new and more efficient technology, forms part of GIADEC’s four projects of the IAI launched by President Akufo-Addo in September 2021.

He said: “VALCO is very much at the core of GIADEC’s strategic plan to develop the entire value chain of the Integrated Aluminium Industry, which is everything around bauxite mining, alumina refining and aluminium smelting and ultimately the development of downstream industries. We are actively engaged in making sure that we can partner various companies to establish downstream industries to ensure that we can lock in the value of what we are doing” Mr. Ansah further noted that the timing of the development of Ghana’s integrated aluminum industry is favourable as there’s been a significant rise in the demand and prices of aluminium

on the world market.

“The timing of what we are doing is right; the market is moving in our favour. The world market today is in deficit in terms of supply of aluminium. China and other big markets are demanding aluminium and that’s what is accounting for the upward trend in pricing. With the deficit that is being forecast in the mid-2020s, it positions us to be in a strong place to drive this” Mr. Ansah added.

Chief Executive of VALCO, Mr. Daniel Acheampong, on his part, thanked GIADEC and government for what he described as a ‘massive support and productive collaboration’ between all stakeholders in the IAI value chain in recent years which is beginning to bear fruits in the operations of VALCO. Mr. Acheampong assured the minister and his delegation of VALCO’s readiness and resolve to play its part in the development of a fully operational Integrated Aluminium Industry in Ghana.

The delegation from the Ministry of Lands and Natural Resources and GIADEC were taken on a brief tour of VALCO to observe the processes involved in the smelting of alumina into aluminium.

The team also observed how the primary metal is poured from a molten state into moulds to produce a variety of forms such as sows, ingots, billets, and slabs.

The Volta Aluminium Company (VALCO) is a wholly owned Ghanaian Company and the largest in West Africa. GIADEC holds 100% shares on behalf of Government of Ghana.

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PPA renegotiation saves nation US$13.2bn Continued from cover of the economy, said proactive management of the energy sector is yielding results – given that the average cost of generation has declined, resulting in an estimated savings of US$13.2billion.

“The renegotiated commercial agreement for the IPPs has been secured and documentation of the renegotiated agreement is underway and in-process toward completion. The average cost of generation has declined from 16.2 USc/kWh to 10.5 USc/kWh. This has resulted in estimated savings of US$13.2billion,” the ministry stated in the investor update.

However, government was keen to note that Sunon Asogli Power Co. is excluded from the

list of the six IPPs given the Take or Pay structure arrangement (vs.

Capacity Charges), “hence, they are not being negotiated with”.

Cash Flow Waterfall

The ministry gave investors assurance of continued implementation of the Cash Waterfall Mechanism (CWM), which is a payment system that

allows debtors to pay highertiered creditors their full interest and principal first before lowertiered creditors receive their own principal and interest payment.

The CWM began in April 2020, allowing the Electricity Company of Ghana’s revenues to be distributed in a more transparent manner and managing payments of arrears – despite the challenging fiscal situation that has been exacerbated by the COVID-19 pandemic.

This forms part of the Energy Sector Recovery Programme (ESRP), which identified the policies and actions needed for financial recovery in the energy sector over a five-year horizon from 2019 to 2023.

Samsung unveils revolutionary Galaxy S22, S22+ and Galaxy S22 Ultra Continued from cover

Galaxy S22/S22+

— everything the Galaxy name is known for — to make mobile experiences better and easier.

“At Samsung, we constantly push ourselves to raise the bar on our most premium devices,” said Lucas Lee, MD of Samsung Ghana Business.

“Galaxy S22 Ultra takes the beloved functionality of the Galaxy Note and the most celebrated aspects of the S Series and merges them for a truly unique mobile experience. This is a leap forward for mobile technology, setting a new standard for what a smartphone can be,” he added.

The Galaxy S22 Series will be available for pre-order beginning 1st March 2022, and the pre-order period continues until 10th March 2022.

There is a pre-order package for every purchase during the promotional period of 1st March to 10th March 2022, with gifts that including Galaxy S22 Series – Galaxy Buds2, Silicone cover, 100GB OneDrive cloud storage for 6months, and complimentary Samsung Care+ registration.

The devices will be available in the following colours and memory options: Galaxy S22 Ultra: Phantom Black, Phantom White, Green, and Burgundy in 256GB and 512GB models with 12GB RAM; Galaxy S22+: Phantom Black, Green, Pink Gold and White in 256 model with 8GB RAM; and Galaxy S22: Phantom Black, Green, Pink Gold and White in 128GB model with 8GB RAM.

For those who want devices that fuel creativity and self-expression, Galaxy S22 and Galaxy S22+ are built to make every moment epic, with dynamic cameras, enhanced image processing and large bright displays.

Consumers want to shoot incredible videos wherever they are — day or night. Galaxy S22/S22+ deliver Samsung’s best camera experiences yet.

With Nightography features for smoother, clearer night-time video and photos, Samsung set out to take your creativity to another level, starting with your smartphone camera.

Galaxy S22/S22+ come equipped with brighter displays that are more intelligent than ever. For the first time in Samsung smartphone history, you can also experience epic performance with the latest 4nm processor.

Partnered with enhanced 5G capabilities, you can game, stream and work across all your favourite apps with incredible ease. And those experiences on Galaxy S22/ S22+ are made even better with our long-lasting batteries that will power you through more than a day on a single charge.

Samsung has also elevated the design to give Galaxy S22/ S22+ a refined and balanced look and feel. The upgraded linear camera setup and sleek camera housing can match the colour of the device’s body for a seamless, distinctly modern design. For those who want the ultimate premium Galaxy phone that can do all this and more, we have

created an entirely new Galaxy mobile experience—Galaxy S22 Ultra.

Galaxy S22 Ultra Samsung introduced its first Ultra smartphone two years ago to represent the absolute best of the best in the Galaxy S lineup. Now, Samsung is pairing the DNA of the S Series with its iconic Galaxy Note to create something entirely new. Meet Galaxy S22 Ultra — a device that breaks the rules of mobile innovation and is truly a leap forward in mobile technology. Galaxy S22 Ultra sets a bold standard for what a smartphone can be.

Galaxy S22 Ultra is a powerhouse encased in the same striking, simple design you love from Note.

It’s also quintessentially S Series, with a next-generation pro-grade camera and viewing capabilities.

For the first time in the S Series, Galaxy’s signature S Pen comes built-in so you can write and draw on Galaxy S22 Ultra’s expansive screen and enjoy a more realistic pen-to-paper feel. Galaxy S22 Ultra’s camera ensures you get the best possible images and

video, whether conferencing for work, watching movies or staying connected to loved ones.

And with Galaxy S22 Ultra’s advanced Nightography features, your creativity doesn’t stop just because it gets dark.

Galaxy S22 Ultra boasts the best performance and speed of any Galaxy smartphone. Its expansive and bright display represents mobile technology at its best and most visually stunning. And with 45W superfast charging3, Galaxy S22 Ultra is a device that truly keeps you connected anywhere.

This is the most powerful Ultra device Samsung ever made — unlocking totally new mobile experiences.

Samsung has unveiled Galaxy S22 Ultra, merging the best of two smartphone legacies – the famous power of the Note Series and the pro-grade camera and performance of the S Series – to set a pioneering standard for premium smartphones.

Featuring a built-in S Pen, advanced Nightography and video capabilities, and battery life that lasts over a day1, Galaxy S22 Ultra is the most powerful Ultra device Samsung has ever created.

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Nominations officially closed for 6th Ghana Beverages Awards

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lobal Media Alliance, organizers of the prestigious Ghana Beverage Awards (GBA), have officially announced the close of nominations for the 6th edition the awards scheduled for March this year.

The nominations which were open from the 15th of December 2021 to February 7, 2022 provided the general public and beverage companies the avenue to select their favourite beverages from 18 competitive categories encompassing both local and foreign beverages.

In all, over 500 nominations were received comprising both brand nominations and public nominations.

Commenting Chief Executive Officer for Global Media Alliance, Ernest Boateng, expressed his appreciation to Ghanaians and the beverage companies for support and patronage over the years and for constantly availing themselves to partake in the nomination phase which contributed significantly towards a successful climax.

“Over the years, we have

seen a growth in the number of entries for this phase. This is a clear indication that Ghanaians and the beverage companies in Ghana have embraced the awards scheme. As organizers, we are very grateful for their immense support and for the confidence reposed in us and we pledge our commitment to the growth of the beverage industry through this means.

“Feedback from you, our patrons, has been phenomenal in the successes GBA has chalked in its six year journey and for this we are most grateful. As always, we

are open to your input all in the spirit of transforming the awards scheme for the better,” he added.

An industry first and being organized under the theme, “Inspiring Excellence in Ghana’s Beverage Industry,” GBA seeks to promote both local and foreign beverages as well as the participation of small-scale beverage enterprises in the awards scheme. With time, the award scheme has proven itself a tool for the promotion of best practices within the beverage industry whiles cementing its position as the bench mark for identifying

beverage companies that are in touch with their markets and contributing significantly to the Ghanaian economy.

In a lead up to this year’s awards, a beverage industry tour will be organized in February for the GBA board to visit all nominated industries to familiarize with their work and practices. Also, there would be the institution of Beverage Segments across selected media platforms as a way of exciting the public ahead of the main event whiles promoting our local beverages & enhancing the knowledge of the public about their favourite beverages.

Ghana Beverage Awards (GBA is proudly supported by the Food and Beverage Association of Ghana (FABAG), Consumer Protection Agency (CPA), Food Research Institute (FRI) under CSI, Perception Management International (PMI), Ghana Tourism Authority (GTA), Ministry of Trade & Industry and Ministry of Tourism, Arts & Culture. It is partnered by Neesim FM Bolga, Neesim FM Tamale Akonoba FM, Citi FM, Happy FM, YFM, and e.TV, Ghanaweb, Daily Guide and Business and Financial Times on the media front.

MTN Group CEO meets key stakeholders in Cameroon, Benin and Ghana

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n MTN Group delegation led by President and Chief Executive Officer Ralph Mupita has concluded a visit to the WECA region, where meetings were held with key stakeholders in Cameroon, Benin and Ghana.

The visit is in line with MTN’s commitment to open and regular dialogue with local authorities in our markets as well as our work to create shared value and engage on developments related to digital and financial inclusion. Among other members of the delegation were MTN Group Senior Vice President Markets Ebenezer

Asante and Group Chief Fintech Officer Serigne Dioum.

During the visit, the MTN leadership noted the role that the Group updated stakeholders on the role MTN is playing in the development of the digital economy, regulatory developments as well as discussion on nation-state strategies for socio-economic developments in the respective markets.

The visit kicked off in Cameroon, where the Group President and CEO held meetings with several material stakeholders, including

the Prime Minister, the Minister of State, the Secretary General of the Presidency of the Republic, and the Head of the Regulatory Board.

He congratulated the Government of Cameroon for hosting AFCON 2021: “AFCON 2021 successfully showcased the football talent of Africa, and demonstrates the importance of football as a unifying force across the continent.

MTN has been increasing its involvement in football, with new sponsorships in Nigeria and Cameroon in recent times.”

Mupita was happy to see the good progress made on key regulatory matters in Cameroon, and expressed gratitude to the country’s authorities for their support.

In Benin, Mupita met the Minister of Economy and Finance, Senior Minister of State, and the President of the Regulatory Board ARCEP and his cabinet. He congratulated the government on the country’s economic growth

as well as Benin’s progress in securing the return of historic cultural artefacts.

MTN is invested in promoting Benin and showcasing its rich culture through the campaign, #LeBéninQueJ’aime.

At the Ministry of Health, Mupita announced MTN’s financing of a shipment of COVID-19 vaccines to Benin.

Mupita spoke about the Government Action Programme (PAG) particularly as it relates to the enhanced efforts towards access, and digital and financial inclusion, which align with MTN’s belief that everyone deserves the benefits of a modern connected life.

On the last leg of his tour, Mupita engaged with key stakeholders in Ghana. These included meetings with the Minister of Communications and Digitalisation and the Board Chairman and Director General of the NCA to reiterate MTN’s support for the further development of the Ghanaian telecommunications sector and Ghana’s broader digital economy plan.

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FRIDAY FEBRUARY 11, 2022

Gov’t spends $305m of World Bank support on COVID-19 “At the time the pandemic emergency response – Minister

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he Minister for Health, Mr Kwaku Agyemang-Manu, says Ghana has spent $305.42 million out of the $430.00 million COVID-19 funding support provided by the World Bank on emergency preparedness.

He said at a press briefing in Accra on Wednesday that the amount used, represented 71.03 per cent of the funds received.

He said the money was used for the procurement of items as part of the nation’s emergency response for the pandemic.

Mr Agyemang-Manu said a total of $37,588,199.99 was used for the procurement of Personal Protective Equipment (PPE) for health facilities, isolation centres and schools across the country.

A total of $53,063,564.98 was used for the purchase of medical equipment such as oxygen, ventilators, respiratory instruments, suctions devices, sterilizers, among others.

He said a sum of $9,867,339.79 was also used to buy COIVD-19 Infection Prevention Control Commodities such as Water Sanitation and Hygiene (WASH) tools.

Additionally, $2,539,379.51 was used to purchase sanitizers and

paper towels while $8,735,273.78 was spent on cleaning materials.

The Minister said $87,731.77 was used to acquire vehicles and $22,328,364.85 used to refurbish and equip COVID-19 treatment and holding centres.

Similarly, $147,483,170.16 was used to acquire vaccines and $95,083.85 spent on consultancy for the Center for Disease Control (CDC).

Mr Agyemang-Manu said $926,384.43 was spent on the transportation and storage of vaccines, $16,181,019.88, on transfers made to implementing partners, $1,874,633.14 to acquire life insurance packages for frontline health workers and $4,649,853.21 on medicines for

the management of the disease.

The Health Minister said the Government of Ghana (GoG) also allocated a total of GH¢662,541,104.53 to the management of the pandemic.

He said GH¢114,450,350.00 of the GoG funds was also used to purchase PPEs, GH¢32,663,280.00 to buy medicines, GH¢484,102,490.90 on Infection, Prevention and Control commodities.

An additional GH¢31,324,983.63 was spent on COVID-19 transfers to agencies, meetings, and conferences.

Mr Agyemang-Manu described Ghana’s COVID-19 management as a success despite the huge expenditures made.

struck, we did not have equipment and structures in place to respond to the emergency, most of the things, things were done on urgent basis,” he said.

He commended President Nana Addo Dankwa Akufo-Addo for his direct involvement in the management of the pandemic by ensuring that initiatives to contain the virus and avert deaths were implemented on time.

The Health Minister said the pandemic had impacted the country’s economy negatively, leading to low productivity, low cash flow and high trade charges.

He appealed to Ghanaians to visit the vaccination centres and get inoculated, saying “COVID-19 has come to stay, it will not leave, get vaccinated to help us ease restrictions to revive the economy,” he said.

The Minister said as of February 7, a total of 11,835,359 COVID-19 doses had been administered with at least 8,325,791 persons receiving a dose.

Presently, 4,486,364 persons have been fully vaccinated with 67,104 persons receiving a first booster dose.

Source: GNA

Stay focused and have a mind-set of possibilities –Bawumia tells the youth

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I want you to know that with God and hardwork, everything is possible. In life there will be challenges and naysayers. Eschew the naysayers and those who want to distract you and wear you down. Ignore those who talk about impossibilities.

Focus your minds, and have a mind-set of possibilities. If you put your minds to you it, you can achieve it.”

These were the words of the Vice President, Dr Mahamudu Bawumia when he addressed over 500 Ghanaian youth drawn across the country at Gomoa Fetteh in the Central Region at the opening ceremony of the Ghana Youth Congress, organised by the Christian Council of Ghana.

The Congress, under the theme ‘Ghana, My Home, My Future’ is the precursor to an African Youth Congress to be organised by the All Africa Conference of Churches (AACC) and aimed at engaging Africa’s youth in general, and Ghanaian youth in particular, to build up moral character, explore the opportunities that exist on the continent, and help disabuse their minds about supposed greener

pastures elsewhere which leads to illegal migration and avoidable deaths.

Recalling his younger days when, amongst others, he was the only member of the Tamale Methodist Boys’ Brigade without boots and ‘studied’ Literature without a text book but is today a PhD holder and the Vice President of Ghana, Dr Bawumia emphasized: “Your present circumstances will not determine your future.

What will determine your future are your dreams, aspirations and hard work. Work hard, study hard, build yourselves, and you will make it. I don’t see why Ghana and Ghanaian youth cannot be among the best in the world. I know you can do it.”

Expanding on the role of the youth in nation-building, Vice President Bawumia pointed out that approximately 67% of Africa’s population is reported to be under the age of 29, and governments on the continent, including Ghana, are exploring ways to help the youth develop their talents and capabilities to meet the growth aspirations of the citizens.

“With an estimated 6 million young people joining the labour force by 2024, the surest way to a sustainable employment path would not come from ‘waiting for a job’ but rather, by encouraging ourselves to apply our creativity and skills towards building opportunities across various fields.

“The Government of President Akufo-Addo’s target is to train our graduates to acquire the needed skills required for the job market in future. Some of the initiatives include an ongoing stakeholder engagement for skills revitalization in several sectors of the economy such as banking and tourism.

“As well, the construction and modernization of all National Vocational training Institutes (NVTIs) and Opportunity Industrialization Centers (OIC) is ongoing, with 17 Technical and Vocational Institutes across the country being upgraded and modernized so far.”

Shedding more light on the aggressive digitalization agenda being pursued by government, Vice President Bawumia said about 9 million jobs in Ghana are

expected to require digital skills by 2030, and the provision of ICT infrastructure and capacity development programmes to provide digital training and upskilling of the youth to equip them for the future is key, hence the installation of telecommunication towers in remote communities, training of ICT teachers as trainers, and the operationalization of the Ghana Digital Centres.

Thanking the Christian Council of Ghana for their “massive contribution to our nation’s growth and development,” including the organization of the Ghana Youth Congress, Dr Bawumia had these parting words for the youth: “To the youths that are here today and all Ghanaian youths, I would encourage you to be open-minded to see the numerous opportunities in this era of globalization in a digitized environment. Only diligent and hardworking youth would be rewarded in this new global economy. Remember, the Sky is no longer your limit, it is now your starting point.”

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Ghana Card can now be used as e-passport in 44,000 airports globally

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hana’s National Identity Card, the Ghana Card can now be used as an e-passport in 44,000 airports globally.

It follows the recognition of the Ghana Card globally as an electronic passport that can be read and verified in all International Civil Aviation Organisation (ICAO) compliant borders.

At a ceremony held at the headquarters of the International Civil Aviation Organization in Montreal in Canada on Wednesday], Ghana was officially presented with the certificate to make the Ghana Card an e-passport to be accepted at 44,000 airports across the globe.

Ghana’s High Commissioner to Canada, Ransford Sowah, received the ‘key’ to symbolically indicate Ghana’s entry into the ICAO family.

This means the Ghana Card, which is a unique biometric identification card, will be accepted as an e-passport in 197 borders globally and 44,000 airports in the world.

Holders of the Ghana Card will be allowed to board any flight to Ghana by just showing the card.

Ghana was officially accepted

on October 13, 2021, as the 79th member of the ICAO’s Public Key Directory (PKD) community.

The ICAO Public Key Directory (PKD) is a central repository for exchanging the information required to authenticate e-passports.

With this, the Ghana Card as well as its future biometric equivalents can present it as official documentation at all 197 (ICAO) compliant countries and 44,000 airports worldwide and board flights to Ghana.

The ICAO declaration follows an earlier hint, given in November 2021 by the Vice President, Dr Mahamudu Bawumia, that Ghanaians anywhere in the world

would soon be able to travel back home using their Ghana cards.

Dr Bawumia had indicated that Ghana was expecting the certificate from ICAO by the end of the first quarter of 2022 and that, apart from acting as the major source of proof of identity, the Ghana Card will be used as an e-passport for Ghanaian citizens, all things being equal, by the end of the first quarter of 2022.

NIA Officials of the National Identification Authority (NIA) have said with the Key Ceremony in Montreal over, the Ghana Card can now be verified internationally and border control authorities will be able to confirm in less

than 10 seconds that a Ghanaian biometric e-passport (booklet), as well as the Ghana Card/epassport, were issued by the right authority, have not been altered, and are not copies or cloned documents.

A statement issued by the Authority read in part, “In practical terms, this means that it will now be faster and more effective for border control authorities to verify the identity of holders of Ghana’s passports.

The Key Ceremony is the final stage of the implementation of Ghana’s e-passport project.”

In brief remark Ghana’s High Commissioner to Canada, Ransford Sowah explained that the Ghana Card contains the biometric information of the holder with a cryptographic digital signature stored on a chip that can be used to authenticate the identity of travelers.

“This makes Ghana one of the few countries in the world where the national ID card also has an e-passport capability,” he added.

“For Ghanaians living or born in the diaspora, holders of the Ghana Card can be allowed to board any flight to Ghana without any visa requirement as we seek to give an inclusive Akwaaba experience to all children and descendants of our motherland.”

Haskè Ventures invests in ProXalys, the start-up that digitises the informal economy

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askè Ventures, the venture builder for Francophone Africa, has boosted the growth of Senegalese distribution chain innovator ProXalys by investing $150 000 in pre-seed funding in December 2021.

ProXalys, founded in 2021 by finance expert Thierno Sakho, specialises in digital transformation in businessto-business commerce, with informal sector retailers as its primary target. The start-up aims to modernise and empower Senegal’s informal traders, who account for up to 90% of the country’s economy.

A key challenge for the sector has been growing competition from large distribution chains that have modern and formalised processes.

With this new competition, informal businesses are reinventing themselves, particularly through the digitisation of conventional supply chain processes.

ProXalys is working to level the playing field for the informal sector by digitising the entire value chain and reinventing

the supply chain processes of the numerous actors in this ecosystem.

According to Sakho, "Digitisation is crucial for the informal sector. We intend to strengthen and modernise the distribution channels. Our goal is to enable informal traders to withstand the dual digital and distribution revolution created by the large multinationals operating on the continent."

It all started with a simple observation: informal traders, which include small scale vendors that operate on the side of the road – many of whom are women - and distributors of everyday products, experience difficulties accessing traditional loan or credit facilities, which are generally offered to formalised businesses.

ProXalys has three tools for managing and capturing daily financial flows in real time: an order-taking application for informal distributors; an IT system for administrative management (which includes order tracking and payment

management; and a supply chain logistics management system – including: inventory, warehousing, transportation, and delivery.

The start-up also provides a procurement service for everyday products, such as onions and potatoes, with staggered payment terms and free delivery within 24-hours. A solution that will allow informal traders to extend their sales capacity thus enabling them to secure working capital for stock.

With more than a hundred customers, ProXalys is winning the trust of informal traders in Dakar. But the start-up does not plan to stop there and is also working to boost agricultural value chains. Each year in Senegal, 150 million dollars (100 billion F CFA) are lost in agricultural production due to limited market access.

"We support producers of all sizes, as we are the unique intermediary between them and informal distributors," explains Sakho. ProXalys also works with formal sector customers across

retail and hospitality value chains.

Thanks to the first round of fundraising, ProXalys intends to expand its reach in Dakar and in the major cities of Senegal with the ambition to eventually support the entire West African region. The start-up will invest the $150 000 capital in the reinforcement of its technology, and in the development of its physical infrastructure – which will include the consolidation of its vehicle fleet and warehouses.

Abdourahmane Diop, Chief Executive Officer of Haskè Ventures says, "We believe that technology has a key role to play in modernising infrastructure in Africa, a major challenge that must be addressed through the upgrade of vital operational channels.

Additionally, the transfer of knowledge and skills development will play a critical role in ensuring the sustained longevity of initiatives undertaken now. We are proud to be supporting ProXalys on their journey and look forward to future progress.”

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AATF to host 9th triennial confab on tropical root crops in Kenya

By Reuben Quainoo

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frican Agricultural Technology Foundation (AATF) in collaboration with International Society for Tropical Root Crops (ISTRC) and the Government of Kenya will host the 19th edition of the International Triennial Symposium of the International Society for Tropical Root Crops in Nairobi, Kenya, from 21st to 25th November 2022.

The Symposium is recognized globally as a platform that bring together key stakeholders at national and international levels to foster, stimulate and support the improvement of tropical root crop production and utilization will be co-hosted by AATF and the Government of Kenya.

“The 2022 19th ISTRC Symposium will be an excellent opportunity for those interested in root and tuber crops from around the world especially Sub-Saharan Africa, to showcase their expertise and share and compare knowledge on how they can contribute to transforming the global agri-food systems,” said Dr. Emmanuel Okogbenin, AATF Director Programme Development and Commercialization, in a statement released jointly by the AATF and the 19th ISTRC

symposium Secretariat.

The historical process leading to the establishment of the International Society for Tropical Root Crops (ISTRC) began in 1964 in Trinidad and Tobago.

A group within the University of the West Indies conceived the idea of holding a series of crop-

orientated symposia and, in view of local relevance, “Tropical Root Crops” was selected as the first topic.

Since then, the symposium has moved around the globe with countries in Africa like Ghana, Nigeria hosting previous editions.

Dr. Okogbenin, who is also

the First Vice President of the 19th ISTRC 2022 Symposium and Chairs the Local Organizing Committee in Kenya promised that this year’s symposium will provide a great opportunity for Africa to advance its production and utilization of tropical root crops.

Societe Generale launches a new securities custody offer Continued from cover player in the Ghanaian banking market.

This new securities services

offer will allow the bank to strengthen its services for a local and international clientele of institutional investors and to develop its offer in Ghana, one

of the main financial markets in West Africa.

Societe Generale Ghana will provide custody services based on its newly implemented IT

platform. Connected to the SWIFT interbank network, the ambition is to offer the best international standards in the management of securities instructions and transactions.

This enriched offer will combine Societe Generale’s knowledge of the local market and SGSS’ expertise in the securities business in order to offer the best solutions in terms of custody.

These extended services in Ghana reinforces Societe Generale’s footprint on the continent, as it provides similar support for the other subsidiaries within the West African Economic and Monetary Union1 (WAEMU) from Côte d’Ivoire, within the Economic and Monetary Community of Central Africa2 (CEMAC) from Cameroon, as well as in Morocco and Tunisia.

10

Feature

FRIDAY FEBRUARY 11, 2022

Achieving financial immunity in 2022 create a different investment plan than if you are doing the same to buy a property in 5 years. In the first case, your primary concern is safety – not losing money before the future purchase. In the second case, you are investing in a long-term goal, and anticipating significant growth in returns.

What you care about is what choices are most likely to help your account be worth the most by the time you are ready to make your withdrawal.

By Richard Kwame Frimpong

I

mmunity” has a Latin origin which means protection or exemption from disease, injury, or work.

It is simply the power to keep yourself from being affected by anything you want to avoid.

In medicine, immunity is a condition of being able to resist a particular disease especially through preventing development of a pathogenic microorganism or by counteracting the effects of its products. In law, immunity is a special protection from what is required for most people.

Financial Immunity is being able to maintain security and stability for any unforeseen emergencies to the extent that you will not have to depend on third party funding or loans from loved ones or your financial service provider.

In 2022 the test of your immunity financially, should be whether you can survive for a minimum of 6months in the event your major sources of income seize abruptly.

If the answer is no, then you are not financially immune.

Do You Know Your Immunity Profile?

Knowing your financial immunity is as important as knowing your health immunity.

And the most important factors for a secured financial life are to understand how well you are doing financially to keep abreast with the changing life stages. A catastrophic financial event may topple your finances if you are not prepared for the events in the new year. Financial immunity thus empowers you to conquer the challenges posed by any economic reality in 2022.

Given the economic consequences of the global pandemic and the example of job losses and economic downturns in the past three years, being financially immune has become the ultimate need of the hour.

The future is uncertain but having a concrete plan helps you sail through the hard times in a smooth manner. It cannot be built overnight as it is a gradual process. The sooner you start investing, the lesser time your financial cushion will take to be ready.

How Do You Build Immunity in 2022?

One of the critical ways to build immunity in 2022 is to create an emergency fund that can give you

Know Your Risk Profile

immunity for at least 6 months.

To do this, you need to you need to create an investment plan that has the ability to protect you from financial emergencies.

Your investment plan must be personalized to your situation, and one that is appropriate to meet your financial goals and objectives. This is because everyone is different, so every plan should be unique. Building a good investment plan to help secure your financial goals, requires a careful understanding of some of the basics of investing rules.

The keys below will thus help you to build a sound investment plan for your financial immunity.

Your Financial Immunity Goal Investment decisions must be made with a clear goal or objective in mind: regular income, liquidity, capital preservation, or growth.

The first thing you need to decide is which of those characteristics is most important.

Do you need current income to live on in your retirement years, growth so the investments can provide income later, or is safety (preserving your principal value) your top priority? For example, if you are 55 years or older before you create an investment plan, you really should define your objective (for instance a retirement income plan). This type of objective, for instance, will help you project your future sources of income and expenses, and your financial account values including any deposits and withdrawals. It helps you identify the point in time where you will even need to use your money and once you have a clear time-frame

you know whether to use short, mid, or long-term investments.

Be Realistic Many investment accounts have minimum investment amounts, so before you can build a solid investment plan you have to determine how much you can invest in practical terms. Do you have a lump sum, or are you able to make regular monthly contributions? Some accounts for instance allow you to set up an automatic investment plan starting with as little as GHC50 a month which would transfer funds from your savings/current account to your investment account. Investing monthly in this way is called cedi-cost-averaging and it helps reduce market risk. If you have a larger sum to invest, obviously more options are available to you. In that case, you’ll want to use a variety of investments, so you can minimize the risk of choosing just one. The most important decision you’ll make is how much to allocate to the various investment classes.

Know When to Withdraw Having a longer time horizon does not guarantee a higher return but it does mean you have time on your side to consider other investment options and strategies that might give you an advantage in the long run. How much time one has can alter one’s investment plans, and it can pivot the level of risk you can take. Just Establishing a time frame(duration) you can stick with is of great importance. If you for instance need the money to buy a car in a year or two, you will

There is no such thing as high returns with low risk. Better to earn moderate returns than swing for the fences. If you decide to swing, remember, it can backfire and you can experience big losses.

It is a common saying that “the higher the risk, the higher the returns, and vice versa”. Some investments entail what we call a level five investment risk; the risk that you can lose almost all your money. These investments are too risky for most people. One easy way to reduce investment risk is to diversify. By doing so you may still experience swings in investment value, however, you can reduce the risk of a complete loss due to bad timing or other unfortunate circumstances.

Know Your Investing Frequency Automating your investment deposits consistently over a period of time is still the best way to save more and worry less. This helps the investor not to cede to the temptation of spending unnecessarily, and the laziness that comes with having to physically walk or drive to the financial advisor every month to make a deposit. Automating your investment deposits can thus be done via standing orders or direct debit with your regular bank, and that will save you a whole lot of time.

Conclusion Take your financial immunity seriously in 2022 and start your immunity account today. Visit your financial services provider and ask them these questions.

Compare their answers with these guidelines and be guided.

You may send comments, questions or suggestions if any to info@flfafrica.org and @ richmondkwamefrimpong across all social media platforms

11

News

FRIDAY FEBRUARY 11, 2022

GSE plays vital roles in Ghana’s economic development—Deputy MD

M

s Abena Amoah, Deputy Managing Director (MD), Ghana Stock Exchange (GSE), says the GSE continues to play a key role in the country’s economic development in its three decades of operation.

She said just like other markets, GSE’s performance had gone up and down, but its overall output had been positive over the years.

She said at the end of 2021, the Ghana Stock Exchange received its highest ever Equities Market Capitalization since its inception in 1990 with a stock market capitalization of GH¢64,495.20 representing 15 per cent of Ghana’s Gross Domestic Product.

The Deputy MD said out of the 31 years of operations, 20 years had seen the achievement of positive results and in two of those years, the GSE had been adjudged the Best performing Market in the World.

Ms Amoah said at the end of 2021, the GSE had been adjudged the second-Best performing market in Africa with a composite index of 43.66 per cent, measuring the performance of its Equity’s Market.

Between 1990 to 2021, the Ghana Stock Exchange, as part of

its contribution and growth of the capital market ecosystem, saw a total number of 253 institutions and participants in the market.

She said on the Debt Market (GFIM), the first year in 2015, the GSE traded GH¢5,222 million with a phenomenal growth throughout the years, trading GH¢208,808 million in 2021.

The Deputy MD, speaking on the volumes of shares in the Central Securities Deposit (CDS) for December 2021, said there were GH¢6,860,968,293 volumes from foreign investors

representing 49 per cent and GH¢7,215,310,349 from domestic investors representing 51 per cent.

She noted that as of December 2021, there were 1,897 foreign investors representing one per cent and 217, 031 domestic investors representing 99 per cent in the Central Securities Deposit.

She said currently, 36 companies had issued 33 different securities, including ordinary shares, preference shares, depository receipt on its Equities Market.

On the Fixed Income Market, however, she noted that there were currently 196 securities listed, including 153 being government and 43 corporate organisations.

Ms Amoah explained that over its years of existence, the Ghana Stock Exchange had facilitated the raising of GH¢18 billion in Equity and Debt Capital with some GH¢5.4 billion raised as total Equities Capital on the GSE. Out of the amount, MTN Ghana raised GH¢1,146.6 million (m) – the biggest amount by a single entity, ADB Bank Banking raised GH¢472.38m, Enterprise Insurance Plc GH¢219.7m, GOIL Plc GH¢197.2m, GCB Bank Plc GH¢103.4m, SIC Insurance Plc GH¢35.2m, and Cocoa Processing Company Plc GH¢13.5m.

Also, Digicut Advertising Plc raised a total of GH¢9.5m, Intravenous Infusions Plc GH¢6.8m while the Produce Buying Company Plc raised GH¢5.9m.

She said between five to 10 years, the Debt Market had raised GH¢12,612.38m and Shelf Registration of GH¢17,670m.

GNA

Japan Motors launches upgraded Nissan KICKS

J

apan Motors Trading Company Ltd. ( JMTC) has launched the latest incarnation of the crossover Nissan KICKS. A media release issued in Accra said the launch of the new Nissan KICKS indicated Nissan’s crossover leadership for the brand by offering a complete range of modern C-SUV vehicle options to the Ghanaian market.

“The global Nissan model, which is produced at Nissan’s A1 manufacturing plant in Mexico, is back to impress with standout exterior styling improvements and a host of comfort and technology additions,” it said.

During the press launch, the General Manager Sales & Marketing, Mr Amine Kabbara, said the Nissan KICKS offered a lightweight aerodynamic design, which optimised fuel consumption and minimised noise.

He said the design combined a robust exterior and an elevated SUV-like driving position

while maintaining city-ready compact measurements for agile performance.

“KICKS now enjoys significant technology improvements to the existing suite of Nissan Intelligent Mobility features, to build on what was first presented at the Geneva Auto Show in 2016.

“The unmistakably recognisable KICKS two tone floating roof design remains, and exterior styling is refreshed with thinly styled all-LED headlamps,

an imposing V-Motion Grille and aggressive changes to the rear bumper and LED lights,” he said.

Again, Mr Kabbara said the upgraded Nissan Intelligent Mobility features aim to reduce driver stress and inspire confidence with an Around View Monitor, Moving Object Detection and Hill Start Assist, which also include dual, side and curtain airbags, cruise control and tyre pressure monitor to enable a comfortable KICKS life.

“Infotainment in the car also enjoys an upgrade with the latest seven” TFT high-definition A-IVI interface which incorporates Apple Carplay™ and Android Auto®. Further interior comfort improvements extend to a driver armrest as standard, manual dimming rear view mirror and an upgrade to door panel trim styling. The efficient 1.6L engine is retained for the new model, which is paired with a D-Step CVT gearbox.

12

Technology

FRIDAY FEBRUARY 11, 2022

Reviving appropriate technology

By Dani Rodrik

I

n 1973, the British economist E.F. Schumacher published a book with the captivating title Small Is Beautiful, advocating the use in poor countries of humanscale, less capital-intensive technologies more suited to local conditions. The book sparked vigorous debate among economists in the 1970s and 1980s on “appropriate technology.”

For developing countries, the ability to adopt new technologies created in the rich world is surely an important advantage.

But technologies developed in advanced economies, where skills and capital are abundant, might constitute at best a mixed blessing. A recent panel discussion involving distinguished economists, convened by the International Economic Association (IEA), suggests there may be even more ground for concern today about the appropriateness of imported technologies.

As Frances Stewart, the University of Oxford economist who was at the center of the earlier round of “appropriate technology” debates, pointed out during the panel, East Asia’s success with export-oriented industrialization seemed to belie the worry that manufacturing would fail to create enough jobs and improve living standards in poorer countries. South Korea, Taiwan, and eventually China all charted a route out of poverty and grew at unprecedented rates as modern industrial factories absorbed rural labor into more productive employment.

But today, export-oriented industrialization no longer works the same way. Manufacturing technologies have become

increasingly skill-intensive, and automation and other forms of innovation have reduced labor’s share of manufacturing value added. As MIT’s Daron Acemoglu pointed out during the IEA panel, global competition, the growing power of corporations relative to workers, and tax subsidies to capital have all encouraged labordisplacing innovation.

This is bad news for developing countries, because their comparative advantage lies in labor-intensive goods. The consequences are already visible in the statistics. Many low- and middle-income economies have been hit by “premature deindustrialization” – the plateauing and decline of manufacturing’s share of employment at lowincome levels, relative to historical antecedents. Even where industrialization continues apace, employment growth in modern, large-scale firms has been anemic.

Moreover, Acemoglu presented data showing that new technologies are biased toward not just the more educated, but toward those with post-graduate degrees, who are the primary beneficiaries. The scarcity of such workers in low-income countries limits these economies’ ability to absorb frontier technologies.

And, as the Yale economist Fabrizio Zilibotti emphasized in his comments at the panel, it also creates a tension between the imperatives of technology transfer and labor-market equality.

One of the central points of contention in the earlier debate on appropriate technology was the degree to which producers have the flexibility to adopt techniques that may be more suited to local conditions. Globalization and the

spread of cross-border supply chains may have diminished whatever scope for adaptation the physical technology affords.

As Columbia University’s Eric Verhoogen pointed out during the IEA panel, higher-quality products are typically associated with more capital- and skillintensive techniques. Firms in developing countries cannot shift to more labor-intensive methods and still meet the requirements of major international companies or consumers.

Verhoogen also warned that, even where there is room for flexibility, departing from global norms could condemn local firms to inferior technological paths.

A recent doctoral dissertation

by Gustavo de Souza at the University of Chicago provides some evidence regarding the downsides. De Souza found that a Brazilian program that taxed the leasing of international technology did lower the share of skilled workers in affected firms, but also reduced employment overall.

Although Brazil is an uppermiddle-income country with considerable technological capabilities, it stands to reason that there are limits to how much domestic technology can substitute for frontier technology from abroad. A more promising, if more challenging, task would be to reorient global innovation itself in a more labor-friendly direction.

After all, there is plenty of evidence from other domains that the direction of innovation responds to prevailing incentives.

For example, recent work by Jacob Moscona of Harvard University and MIT, together with MIT’s Karthik Sastry, shows how biotechnology improvements

in agriculture have focused on addressing specific local pathogens, making these innovations less transferable across climatic zones. Acemoglu pointed to the significant increase in US renewable-energy research once government programs and social pressures combined to alter private-sector incentives. And encouraging the development of new military technologies has always been part of governments’ policy arsenal.

The question is whether it is possible to mount a similar effort to encourage more laborfriendly global innovation.

Whether it is “collaborative” robots in manufacturing that work with humans rather than replace them, or artificialintelligence tools that allow teachers or nurses to perform more skilled, specialized tasks, proof of concept already exists in diverse forms. The challenge is to build on these examples and embody this new orientation in innovation policies.

It may be too much to ask governments of technologically advanced countries to reimagine their approach to innovation with poorer economies’ interests in mind. But self-interest should push them in the same direction.

Developed countries also suffer from economic insecurity, labor-market polarization, the disappearance of good jobs, and the attendant social and political ills.

The implication seems clear: Bending the arc of technology to society’s needs, rather than expecting society to adjust to technology’s demands, should be as much a priority for advanced economies as it is a challenge for developing countries.

13

African Business

FRIDAY FEBRUARY 11, 2022

GH₵2.6bn realised from banks to support 1D1F since 2017 –Trade Min

By Eugene Davis ugendavis@gmail.com

T

he Minister of Trade and Industry, Alan Kyerematen, has said government has mobilised loans worth GH₵2.69bn from participating financial institutions to boost One District One Factory (1D1F) companies.

Appearing before Parliament to answer questions relating to 1D1F and other sector questions, he told lawmakers “Since the start of the programme, government has successfully mobilized loans for 1D1F companies from the Participating Financial Institutions totaling an amount of GH₵2.69bn.

This amount has been leveraged through the disbursement of an amount of GH₵260.9m by Government as subsidy to derisk loans and support interest payment for beneficiary 1D1F

companies and project” Further, he said the last four years, the government of Ghana through the Ministry of Trade and Industry has facilitated the setting up of a total of 278 companies and projects across the 16 regions of Ghana. Out of

this number, 106 companies are currently in operation, 148 are under construction, and 24 are at the mobilization stage.

He adds that is important to note that the 1D1F initiative is private sector-led but facilitated by government.

The role of the Government includes payment of interest subsidy on loans granted to 1D1F companies and projects by Participating Financial Institutions(PFIs); granting of incentives such as Waiver of Import Duties on capital goods and raw materials; and facilitation of access to infrastructure such as electricity, water, and roads.

The Minister also touched on the amount realized from rental charges from 2017 to 2020 in respect of Start-up garment factory, existing garment factory, warehouse and Tema Ministerial Building.

According to him between2017and 2020,the Ministry realized an amount of GH₵540,734.47 from Start-Up and Existing Garment Factories; an amount of GH₵675,067.22 from warehouse; and an amount of GH₵,822.56 from Tema Ministerial Building(LongRoom).

Appiatse Support Fund to receive US$5m out of US$6m Maxam fine

By Eugene Davis ugendavis@gmail.com

T

he President, Nana Addo Dankwa Akufo-Addo, has directed that US$5m out of the total US$6m to be paid by Maxam Ghana Limited

to government, be donated to the Appiatse Support Fund, established by government.

This move is to, among others, support the victims of the Appiatse incident and reconstruct the community.

According to a letter signed

by the Minister of Lands and Natural Resources,Samuel Abu Jinapor, the directive follows an administrative fine of US$1m, he imposed on Maxam Ghana Limited for regulatory breaches, following the Appiatse incident which killed 13 people and

destroyed the entire community, and an agreement with the company to pay an additional amount of US$5m to government.

The directive follows an administrative fine of US$1m he imposed on Maxam Ghana Limited for regulatory breaches, following the Appiatse incident which killed thirteen (13) people and destroyed the entire community, and an agreement with the company to pay an additional amount of US$5m to government.

By law, the US$1m, which constitutes the administrative fine, forms part of the Internally Generated Funds (IGF) of the Minerals Commission, the regulator of the sector.

“The President has, therefore, directed that the additional US$5m to be paid by Maxam to Government, be donated to the Appiatse Support Fund to support the reconstruction of the community.

Accordingly, I have directed the Minerals Commission to ensure that the said US$5m paid to the Appiatse Support Fund, in accordance with the agreed terms of payment.”

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FRIDAY FEBRUARY 11, 2022

15

Global Economy

FRIDAY FEBRUARY 11, 2022

Economic bridge building

By J. Bradford DeLong

I

n the history of modernity, the real sea change came in 1870, with what the Nobel laureate economist Simon Kuznets called “Modern Economic Growth.” Since then, humanity’s technological capabilities have roughly doubled every 35 years or so, revolutionizing the economy with each generation, and then revolutionizing it again with the next one.

Combined with the market economy and modern capitalism, technological progress has given rise to extraordinarily efficient new ways of making old and new things. But if your life was centered around making old things the old way, you learned the hard way what Joseph Schumpeter meant when he called modern capitalism “the perennial gale of creative destruction.” Moreover, in a market society, the technological forces driving the “destruction” tend to be amplified, because property rights are the only things that matter, and some property rights turn out to be more valuable than others.

This naturally creates social and political tensions. People generally believe that they should have more, and more varied, rights than merely those conferred by property ownership. As such, there is prevailing disillusionment with the message of the past few decades, which has amounted to: “The market giveth, the market

taketh away: blessed be the name of the market.”

Now comes The Wall and the Bridge: Fear and Opportunity in Disruption’s Wake, by the thoughtful ex-neoliberal economist Glenn Hubbard. A chairman of the US Council of Economic Advisers under President George W. Bush, Hubbard reflects on what has happened to the US economy since he started studying economics back in 1977. Since then, “technological change and globalization have magnified the market value of my skills and… [those of other] professionals.

Meanwhile, the closure of Youngstown’s integrated steel mills did not lead to moonshot efforts toward the preparation and reconnection of many workers and communities for the changing economy.”

He closes with a vision of the better road not taken: “Imagine if bold support for community colleges and training would match the preparation and reconnection of the G.I. Bill as America was encouraging global integration.

Imagine if leadership…moved political debate toward economic participation… Imagine mass flourishing.”

Reading this, my memory flashes back not to 1977 but to 1993. I am in the White House Roosevelt Room, and the voice I hear is not Glenn Hubbard’s but then-Secretary of Labor Robert Reich’s. He is touching on all the same themes.

Technology and globalization

offer far-reaching benefits, Reich notes, but they also increase the risk of some people being left behind. Accordingly, we should build bridges to help people move to the sectors that will define the new economy. What we should not do is build walls to protect the industries that will be rendered unproductive by the forces of creative destruction. (At this point, I also hear the voice of then-Vice President Al Gore, who is keen to spend federal money to create the backbone of what would become the internet of the 1990s – the ultimate bridge to mass flourishing in the twentyfirst century.)

Working under Secretary of the Treasury Robert Rubin, we told Reich something along these lines: “Yes, you’re right. But it can’t be done now. American voters are angry. We need to raise taxes on the rich, put the budget deficit on a path toward zero, and generate an economic recovery based on high investment and high productivity growth. We’ll address many of those issues this year, and next year we will do NAFTA (the North American Free Trade Agreement). We can turn to bridge building and social democracy afterward.”

Reich lost that policy debate, and the Clinton administration never did get around to pursuing social democracy, bridge building, or mass flourishing. We could have taken that road, but the Republicans retook the House of Representatives and embarked on a scorched-earth campaign of

obstructionism under Speaker of the House Newt Gingrich.

We would have liked to have Hubbard on our side in the policy debates that followed the so-called Republican Revolution of 1994. “We economists,” he writes, “have let the public debate drift to the opposite extremes of building walls and a laissezfaire optimism about change and markets making everything OK.” Reading that, I can’t help but think of Tonto’s response to the Lone Ranger: “What do you mean ‘we,’ kemosabe?”

Recounting the Republican Party debate that he participated in, Hubbard notes that Trade Adjustment Assistance “came up as a policy topic only when new trade expansions were sought.”

Otherwise, “it received little sustained attention or interest in its augmentation.” Here, my response is, “Glenn, you are late to the party!”

Fortunately, he has brought great refreshments to make up for his tardiness, making me wish that I had had his book in hand six months ago, before finalizing my own forthcoming book, Slouching Towards Utopia: An Economic History of the Twentieth Century. Indeed, the intellectual landmarks Hubbard references are largely the same as mine: Karl Polanyi, Friedrich Hayek, John Maynard Keynes.

All told, Hubbard has it right.

Populists want to build walls, but what we need – even more than we did three decades ago – are bridges.

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FRIDAY FEBRUARY 11, 2022

17

Feature

FRIDAY FEBRUARY 11, 2022

Does AFCON remain an avenue to promoting tourism on the continent?

By Philip Gebu

T

he African cup of nations was first held in February 1957 in Khartoum, Sudan where Egypt defeated the hot nations in the final. The competition has served as a showcase for the talents of African players.

The 33rd edition just ended and it brought the world’s attention on Cameroon. Many people travelled to Cameroon to witness the matches. At the end of the tournament Senegal emerged the winner. Prior to this tournament, there were many clubs in Europe not happy releasing their players to honour the tournament. We all heard the Liverpool manager describing this tournament as a “little tournament”.

Many people described his statement as unfortunate. The good news is that all the big stars of Africa were present representing their country and it was indeed a great tournament except for the deaths which occurred. May their soul rest in peace. CAF will have to ensure such occurrences do not happen in the future. I read an article from the daily mail in UK where they highlighted these unfortunate issues as a dent on the tournament most especially the organisors taking the blame for similar past events.

Unfortunately, our beloved country being represented by the black stars did not do well. This

must be the beginning to putting the right measures in place to ensuring the return to the happy days. Senegal will receive $5 million while runners-up Egypt will get $2.75 million. There are also increases for the six other teams that qualified for the quarter final stage. As in previous years, teams that are knocked out before the quarter finals will not receive cash from CAF. I thought this tournament will be an avenue to promoting the tourism of Cameroon to the world. I stand to be corrected because I didn’t see any ads promoting their tourism. AFCON must be an avenue not only to promoting our talents, and an avenue to also ensuring our tourists site are advertised to the whole of the continent.

Intra Africa tourism is the future of tourism on the continent. With international arrivals having dwindled drastically on the continent, a focus on intra Africa tourism has been seen as the way forward. Cote D’Ivoire is hosting the next edition and I hope they have started incorporating a serious marketing of their tourism as part of their plan. Promotion is key to attracting tourists to a destination and we need to do so.

Some have compared the price money to what happens on the European continents and feel its inadequate. The fact is we can’t compare ourselves to them and we must be proud of what we

receive.

Others have also argued that hosting and holding the event is not worth the investments.

This is premised on the fact that economists don’t see the economic benefits. I chance upon an article where the writer made some very interesting arguments which I want to highlight. It is estimated that Cameroon has invested no less than 760 million euros in the country's sports infrastructure and in the development of other facilities prior to hosting the event. The AFCON soccer tournament breathed some life back into businesses in Cameroon as some locals switched businesses.

Many hoped that revenues from the tournament can revive their fortunes following losses incurred during the pandemic.

The economic impact will be measured in the coming months and years. There is doubt that there will be some economic gain.

A new report on the economic impact of the world cup when Russia hosted it revealed the boost for the country's GDP could amount to between 1.62 trillion rubles ($26 billion) and 1.92 trillion rubles ($30.8 billion) over the 10 years from 2013 through to 2023. Next year we live to see if the target has been achieved.

That's attributed to growing tourism plus large-scale spending on construction, plus later knockon effects from those government

investments. It even suggested the World Cup would encourage Russians to exercise more, so they take fewer sick days.

The report said the total spend on the tournament would be 683 billion rubles ($11 billion), though that doesn't include some costly new infrastructure and stadiums which organisers say would have been built regardless.

Around 220,000 jobs would have been created, the report said.

Economic impact figures for earlier tournaments have been hotly disputed, given the difficulty of separating the World Cup from other economic factors. The first reason is simply the opportunity cost of hosting a major sporting tournament. The money spent on new or upgraded infrastructure is likely to be more wisely used in long-term investments in critical areas of the economy. Largescale construction is typically justified on the grounds that it will boost economic growth in the short term, and improved infrastructure will bring longterm gains to society.

Though this may be true - an increase in government spending should lead to a rise in Gross Domestic Product - the World Economic Forum’s Inclusive Growth and Development Report argues that focusing on inclusive growth is more important. This means spending to deliver both

CONTINUED ON PAGE 18

18 CONTINUED FROM PAGE 17 economic growth and broadbased, sustained improvements to living standards. Unfortunately, sporting infrastructure is expensive to construct and run, takes up scarce and high-value real estate, and is often difficult to use with enough frequency to cover maintenance costs. A stadium is not really essential to the economic well-being of a median worker. So if tournaments are a convenient excuse to construct and improve tangential national infrastructure, why not derive equivalent benefits at a lower cost by eliminating stadia from the equation?

In his argument against hosting mega sporting events, economist Andrew Zimbalist lists examples of the white elephants left barely used in host cities once tournaments have ended. Before the 2010 World Cup in South Africa, low-income residents living in settlements near tournament sites were reportedly evicted in an attempt to improve the country’s image on the national stage, leading many to question whether the money would have been better spent on improving impoverished communities instead. Brazil’s most expensive World Cup stadium is now a parking lot, and the country’s preparations for the World Cup cost an estimated $1114 billion. The National Court of Auditors of Brazil concluded that public spending on the World Cup would be "enough money to pay the entire country’s annual Bolsa Familia [social welfare] bill twice over". When measured against an expected economic impact of $313 billion, it’s hard to argue that taxpayers saw a fair return on their investment.

Major sporting events certainly attract thousands of sports fans.

FRIDAY FEBRUARY 11, 2022

But they may disrupt established tourist flows and end up driving traffic away from popular sites and attractions. As to whether these tournaments boost overall tourist numbers, the evidence may point to the contrary.

They still argue that in both Beijing and London, year-onyear visits decreased in their Olympic years, in 2008 and 2012 respectively, while the UK’s most popular museum, the British Museum, saw 22% fewer visitors during the month that the games were held.

The British government's own evaluation after the Olympic Games concluded that "there was substantial displacement of regular visitors who were deterred by the potential for overcrowding, disruption and price rises".

Even when tourism does increase, it doesn’t necessarily produce a pareto gain, because there is a spend associated with attracting visitors. Before the 2010 World Cup in South Africa, it was predicted that around 450,000 tourists would enter the country for the tournament.

In the end, only two thirds showed up. Despite the reduced numbers, visitor spend increased by almost a quarter, but at a cost of acquisition to the South African government of up to $13,000.

For roughly the same amount, the country could have paid the wages of the entire working age population for a week. Indeed, it’s hard to determine where the money that tourists spend ends up. Hotel prices rise during sellout events, but wages of service workers do not necessarily go up by the same amount, meaning the returns to capital are likely greater than those to labour.

Looking ahead to Russia, analysts anticipate that economic gains from hosting the 2018 World Cup

will mainly benefit the tourist industry, but have described them as being so negligible that they are "equivalent to that of a statistical error".

The Argument from an economic point of view may be right however, the multiplier effect of tourism remains the driving force to tourism development. Sport may be the starting point and can be very powerful. At the Winter Olympics, there was an opportunity for nations to put aside their differences and concentrate on friendly competition. We had a chance to recognize that we are all human beings, that we all belong to one big family and that we can participate in sport and simply enjoy ourselves. Sport is the bringer of peace.

No one is suggesting that sport can change everything. It would be naive to believe that, where there is war, sport arrives and suddenly there is peace, love and mutual understanding! To create change, many different components must be aligned, including governments, politicians, media and industry.

But sport can play a crucial role in helping create that alignment.

The most famous example comes from South Africa after the fall of the apartheid regime, Nelson Mandela’s release from prison and his installation as president.

At the 1995 Rugby World Cup, Mandela used sport as a vehicle to demonstrate how people from opposite ends of the political spectrum – many of whom had believed that violence was the only solution – could come together to support one national team, no matter the colour of their skin.

It was a monumental success, demonstrating what was possible using sport. It was without doubt a pivotal moment in the healing of the nation’s deep wounds,

and something tangible Mandela could build upon as he worked on the difficult challenges of unifying South Africa. In a famous speech, he said: “Sport has the power to change the world. It has the power to inspire. It has the power to unite people in a way that little else does. It speaks to youth in a language they understand. Sport can create hope where once there was only despair. It is more powerful than government in breaking down racial barriers.”

I believe when the Senegalese players retuned home, the supporters on the street for once forgot their political differences.

Both opposition and government supporters where jubilating together. That remains the power of AFCON and we need to use its benefit to promoting tourism on the continent.

Philip Gebu is a Tourism Lecturer. He is the C.E.O of FoReal Destinations Ltd, a Tourism Destinations Management and Marketing Company based in Ghana and with partners in many other countries. Please contact Philip with your comments and suggestions. Write to forealdestinations@gmail. com / info@forealdestinations. com. Visit our website at w w w. f o r e a l d e s t i n a t i o n s . com or call or WhatsApp +233(0)244295901/0264295901.

Visit our social media sites Facebook, Twitter and Instagram: FoReal Destinations

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Feature

FRIDAY FEBRUARY 11, 2022

Righting the injustice of Africa's water crisis

By J. Atsu Amegashie

I

magine that a crisis emerges in your home, workplace, or community. You neither created it nor benefited from it. And yet, you are bearing the brunt of the consequences, while those who did create and benefit from it continue to make the problem worse. For Africa, such an egregious injustice has become all too real.

Though Africa contributes only 4% of global greenhouse-gas emissions annually, it is among the regions most vulnerable to climate change and climate variability.

Already, climate disruptions and crises are severely undermining human well-being and economic development, and water-related disruptions pose some of the most serious risks.

The Intergovernmental Panel on Climate Change’s 2021 report confirmed that global warming intensifies and accelerates the water cycle. Climate change will not only continue to fuel ruinous rainfall and flooding but will also cause more frequent and extreme drought in many areas. This means reduced access to drinking water in a region where one in every three people already face water scarcity daily. It also means more hunger, malnutrition, and even famine.

The first climate changeinduced famine has already occurred. Last year, following the worst drought in four decades, Madagascar confronted a food crisis that left 1.3 million people facing severe hunger, with tens of thousands enduring lifethreatening conditions. But the plight of Madagascar’s people

received precious little attention in international media.

Madagascar is not alone. In the Horn of Africa, a drought is destroying crops and livestock in Kenya, Somalia, and Ethiopia.

When people cannot access their basic needs at home, they are likely to migrate in search of better conditions, potentially exacerbating economic and political insecurity and compromising future prosperity.

That has already happened in Angola, with persistent drought forcing thousands of people to seek refuge in neighboring Namibia.

But while those who have benefited the least from the activities that have fueled climate change could lose their homes, health, and livelihoods, those who bear the most responsibility for this outcome have not provided nearly enough funding to enable Africa to adapt. In 2009, rich countries pledged to mobilize $100 billion per year by 2020 to help developing countries cope with climate change. But they fell well short, and the lion’s share of the funding was allocated for mitigation, rather than urgently needed adaptation measures.

Whereas African governments estimated that they needed $7.4 billion per year by 2020, Africa received less than $5.5 billion (roughly $5 per person) per year between 2014 and 2018, and funding for adaptation amounted to just $16.5 billion – barely half the total for mitigation.

Africa’s funding needs are now much larger – and growing fast.

The United Nations Environment Programme’s latest Adaptation Gap Report estimates

that adaptation in developing countries will cost some $70 billion each year, with costs potentially rising to $140-300 billion in 2030 and $280-500 billion in 2050.

The UN Climate Change Conference in Glasgow last November offered Africa some reason for hope, as developed economies pledged at least to double their collective provision of adaptation finance to developing countries from 2019 levels by 2025. But even if they fulfill these commitments – no sure thing – more must be done to deliver water security to Africa.

The African Development Bank (AfDB) estimates that $64 billion will be needed annually to meet the continent’s water-related needs. Yet, as it stands, only $10-19 billion is being invested in water infrastructure in Africa each year.

To close this gap, African Union (AU) leaders last year adopted the Continental Africa Water Investment Programme (AIP), focused on accelerating investment in climate-resilient regional, transboundary, and national water infrastructure, such as dams, irrigation systems, water-management information systems, and sanitation facilities.

The AIP estimates that, by 2030, it will be able to leverage some $30 billion of investment in these areas, creating at least five million jobs.

Moreover, the African Ministers’ Council on Water has co-convened a High-Level Panel on Water Investments, together with the UN Development Programme, UNICEF, the AU Development Agency, the AfDB,

the Global Center on Adaptation, and the Global Water Partnership (GWP). At its inaugural meeting last September, the panel adopted a roadmap for mobilizing international financing for water investments and accelerating policies to achieve the UN Sustainable Development Goals.

The so-called WASH (Water, Sanitation, and Hygiene) initiative, being pursued by the Southern African Development Community with GWP support, is also advancing vital water-related objectives. By installing handwashing facilities at border posts across the region, the initiative will help to stem the transmission of infectious diseases, thereby facilitating intra-regional trade and economic activity and, ultimately, contributing to the realization of the African Continental Free Trade Area.

But, as with all these initiatives, success depends significantly on funding. That is why African countries and their international partners have developed the Water Investment Scorecard, a data-driven approach that, by tracking progress, will help to sustain pressure on decisionmakers.

Africa did not cause the climate crisis, but African leaders are taking the initiative in developing strategies for coping with it, including its impact on the continent’s water security and sanitation. The question is whether those who are most responsible for climate change will put their money where their mouth is before it is too late.

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Markets

FRIDAY FEBRUARY 11, 2022

WEEKLY MARKET REVIEW FOR WEEK ENDING FEBRUARY 4, 2022

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FRIDAY FEBRUARY 11, 2022

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WEEKLY MARKET REVIEW FOR WEEK ENDING FEBRUARY 4, 2022

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BUSINESS24.COM.GH FRIDAY FEBRUARY 11, 2022

NO. B24 / 304 | NEWS FOR BUSINESS LEADERS

MONDAY MAY 3, 2021

FRIDAY FEBRUARY 11, 2022

Interest payment, debt sustainability: A non-technical conversation (2) for their suffering.

When government wants to introduce e-levy without refining it to reflect the concerns of the public it is because government does not have enough revenue and is facing interest payment challenges.

The business community knows that if banks are lending to government more than them, it is because government’s appetite for borrowing is competing with them to meet the acute financial needs. Thus the use of the word may be full of ‘undecoded’ verdicts on the government.

By Prof. John Gatsi

R

evenue comes from exports, taxes, economic activities through economic growth and jobs. So, borrowing is done with future revenue in mind. Debt management cannot be undertaken without considering all these factors including depreciation.

Robust exports, lower interest rate, which is lower than growth rate, good tax administration are all needed to manage a sustainable debt regime. Using the Bank of Ghana policy rate as a proxy for interest rate or even 91-day Treasury bill rate or the weighted average lending rate, which are all higher than the growth rate implying this vicious cycle must be dealt with. On average, the yield on our bonds is higher than the growth rate of GDP, so these issues must be worked on.

On average, from table 2, between 2017 and 2021, 47.86 per cent of tax revenue has been spent to pay interest on Ghana’s debt and 57 per cent in 2021, meaning the tax revenue is so burdened that it cannot support three major expenditure items.

Therefore, continue to deepen the vicious cycle of high borrowing and high interest payment. This is not sustainable.

Another determinant of interest burden is interest payment /Total revenue with benchmark of 20 per cent.

Between 2017 and 2021, on average 38.7 per cent of total revenue is spent on interest payment which is above the threshold by 18.7 per cent.

Both interest payment /Total revenue and Interest payment / Export have been outside the benchmark, meaning all the debt sustainability ratios show serious vulnerability and distress.

Technically, experts prefer to describe acute financial situation of a country using expressions like debt distress, financial distress, default, risk of the economy and debt sustainability, among others.

All the debt sustainability analysis in this paper confirms fiscal distress, repayment burden and general hardship but will not simply be described with the Published by Business24 Ltd. Nii Asoyii Street, Mempeasem East Legon-Accra, Ghana.

Conclusion

word broke.

Ordinarily, when a person is ‘broke’, it means in the immediate time, he/she is not able to finance some basic needs because the level of income is limited. Some people use the term to mean so many things including poverty, bankruptcy, and default.

In extreme cases, some experts use the word "broke" synonymously with a "failed state".

The use of the word, especially for government finances, sometimes create difficulties for government communicators.

When the word is used, it is only to express the sufferings, hardships, inability of government to meet the expectations of citizens.

The word does not mean there is no money. It only means the needs are not being met and is creating disappointments.

It does not mean that natural resources have finished, neither does it mean the government is not collecting taxes to generate revenue. It could, however, mean the public and opposition politicians are saying there is mismanagement, unprioritised expenditure, corruption, over Tel: 030 296 5297 | 030 296 5315 Editor: Benson Afful editor@business24.com.gh +233 545 516 133

borrowing, excessive taxes but the government is not able to deliver.

The public knows that it is because the country is facing financial, economic, and fiscal difficulties that is why in the mist of well-articulated hardships, we face the effects of forex depreciation on prices and public debt, many uncompleted projects, unpaid contractors and marginal increase in public sector wages and salaries.

The government should understand that the public knows these facts when they say the country is broke. They know all state institutions including Ghana Revenue Authority (GRA), Bank of Ghana are still functioning.

In fact, they know our cherished traders, entrepreneurs, spare part dealers, farmers and indeed washing bays, hairdressing salons and barbering shops are still in operation.

What they are communicating using the word "broke" is upward price development and the inability to finance the basic needs the home out of their toil and the over borrowing, high interest payment are the reasons business24.com.gh

The use of tables and graphs covering a 5-year analysis from 2017 to 2021 provides a quick visual impression of fiscal vulnerability, debt distress and interest payment burden of the Ghanaian economy.

The trend provides a clear picture of unsustainability of borrowing. The economy is suffering from debt repayment burden, lower revenue than expected to remain sustainable.

Ghanaians use the word ‘broke’ to convey hardships and inability of government to meet basic expectations. The graphs below show increasing levels of both revenue and expenditure but expenditure trends up more than revenue.

Thus it is not true that revenue has not been performing, the problem is with the unwillingness to change the expenditure model.

Dealing with export measures can also contain the debt distress of the Ghanaian economy.

The trend helps to make understanding simple and appreciate the clear picture provided over time, not at one point in time but over a period (2017-2021).

It helps to interrogate the trend for policy intervention as the main drivers and direction are seen over time. Sectoral performance trended downwards from 2017 even though flagship policies such as Planting for Food and Jobs and one-district, onefactory have been implemented.