Business24 Newspaper - July 17, 2020 by Business24 Online

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FRIDAY JULY 17, 2020

Stock market slump depresses Databank’s fund returns New body to investigate aviation accidents → Bill laid in Parliament → Investigations to be independent of GCAA → Passengers to fund new entity MORE ON PG 3

BY DOMINICK ANDOH

Kojo Addae-Mensah is CEO of Databank and board chairman of Balanced Fund, one of the funds managed by the investment company.

A Business24 analysis of the 2019 annual reports of all five funds managed by leading investment firm Databank showed that the poor performance of the stock market last year depressed returns and contributed to a significant decline in the size of three of the managed funds. Equity-based mutual fund EPack saw an 11 percent decline in assets under management, from GH¢186.1m to GH¢165.1m as at December 31, 2019. The size of ArkFund, which is the country’s first and only ethical mutual fund, also declined by 23 percent from GH¢28.2m to GH¢21.9m, after

recording a subdued return of 4.3 percent compared with the 11.8 percent recorded in 2018. “The subdued return in 2019 was on account of the poor performance of equities during the year. Despite this, income from the fund’s fixed-income holdings sustained the returns of the fund,” said Joyce Aryee, board chairperson of the fund. Databank’s Balanced Fund (BFund), a fund that balances between the growth potential of equity securities and the relative safety and income generation of fixed-income securities, recorded a 13.4 percent fall in managed assets to GH¢72.4m, despite its investor base going up

Face protection masks (FPM) could inject at least US$1.5billion annually into the African economy MORE ON [PAGE 7

MORE ON PG 3

ECONOMIC INDICATORS *EXCHANGE RATE (INT. RATE)

USD$1 =GHC 5.6577*

*POLICY RATE

14.5%*

GHANA REFERENCE RATE

15.12%

OVERALL FISCAL DEFICIT

6.6 % OF GDP

PROJECTED GDP GROWTH RATE

1.5%

PRIMARY BALANCE.

-1.1% OF GDP

AVERAGE PETROL & DIESEL PRICE:

GHc 5.13*

INTERNATIONAL MARKET BRENT CRUDE $/BARREL

41.50

NATURAL GAS $/MILLION BTUS

1.78

GOLD $/TROY OUNCE

1,765.05

CORN $/BUSHEL

329.50

COCOA $/METRIC TON

2,386.00

COFFEE $/POUND:

+5.70 ($108.30)

COPPER USD/T OZ.

220.15

SILVER $/TROY OUNCE:

17.07

NEWS/EDITORIAL

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FRIDAY JULY 17, 2020

EDITORIAL

Wash your hands 2

Cover your cough 3

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)

Textile industry gains must be sustained The textile industry, which was near collapse before COVID-19 induced large scale production of face masks, has seen some revival over the last four months. Demand for locally produced fabrics for the production of face masks has seen an increase. In Africa, it is estimated that the rapidly evolving sector could contribute approximately US$1.5 billion annually into the continents’ economy. “This high demand during these unprecedented times is largely a result of the growing need for personal protective equipment (PPE) spurred on by the global Coronavirus pandemic as well as the latest mandate by the governments regarding the use of face protection masks at all times in especially public places,” Professor Douglas Boateng global supply chain Expert noted. He believes that the widening demand for quality reusable clothbased face protection masks (FPM) over the next decade will open up opportunities for the local development and supply of these essential PPE. “Every crisis presents opportunities

for visionary business and political leaders. SAR-COV-2 cases in Ghana and across the globe have prompted the need for an increased supply of FPMs as a means to prevent the spread and reduce the number of infections. This growing need to contain the virus as well as rising health awareness among Ghanaians is driving market growth in this area,” he said. A new report by Grand View Research indicated that a global compound annual growth rate of 53% is expected over the forecast period. This prediction could have a significant impact on the opportunities that are available to the Ghanaian textile industry as well as smaller and medium sized enterprises operating in this sector. With the FPM industry expected to more than double over the next 10 years, Boateng has urged African businesses to embrace the opportunities that have emerged and lead the way in FPM production and supply in the region. Commenting on the growing opportunities in this sector, the Secretary-General of the African Continental Free Trade Area H.E.

Mr. Wamkele Mene noted that demand for FPM could have a significant impact on economic development and sectoral growth in the coming years. “Äs more and more people become attuned to the need for FPMs, opportunities for regional production and distribution of disposable as well as reusable face masks will increase. The AfCFTA is in full support of the use of FPMs to reduce the spread of the Coronavirus and is mindful of the impact that growth in this sector could have for regional wide job creation and economic empowerment .” Despite this promising future for the textile industry, it is imperative for government to support the sector with targeted soft loans and the right policies to revive a sector that used to employ millions of Ghanaians but has seen its fortunes diminish drastically over the past two decades

Stock market slump depresses Databank’s fund returns (…CONTINUED FROM COVER )

by 7.3 percent to 25,563 shareholders in the year. The fund closed the year at a price of GH¢0.6606, translating into a full-year return of 7.1 percent. “Despite the present macroeconomic headwinds and the tough operating environment for the financial industry, we remain cautiously optimistic about the fund’s performance in 2020,” board chairman of the fund Kojo Addae-Mensah assured. On the positive side, low-risk money market mutual fund MFund grew both its unitholder base and size, by 22 percent to 178,672 and 6 percent to GH¢633.6m respectively. The Educational Investment Fund (EdiFund) Tier-1 grew by 13.1 percent to GH¢11.9m from GH¢10.5m recorded in the previous year, having ended the year at a price of GH¢0.2238 and a

return of 11.4 percent. The EdiFund Tier-2 also grew by 12.5 percent from GH¢20.3m to GH¢22.8m, supported by net inflows, with a 6.9 percent return and a year-end price of GH¢0.2029. The combined shareholder base of EdIFund increased from 25,198 to 33,134 during the period. Last year, the GSE Composite Index, which measures the performance of stocks of listed companies, recorded a negative return of 12.2 percent, while the financial stocks index, which measures the performance of listed stocks of financial institutions, recorded a negative return of 6.2 percent. The stock market has suffered further declines this year, with the GSE Composite Index falling by 16.6 percent since the beginning of

the year to July 15 and the financial stocks index falling by 14.1 percent in the same period. Despite this, managers of the funds have assured investors of innovative investment strategies that will offer impressive yields in a Covid-hit stock market. Mr. Addae Mensah said: “We will continue to work tirelessly to deliver sustainable risk-adjusted returns in the medium to long term.” “While we recognise the tough and volatile macroeconomic environment in which we operate, we have taken the necessary precautionary measures to ensure that MFund continues to yield significant value for you, our unitholders,” Benjamin Gogo, board chairman of the fund, also assured.

FRIDAY JULY 17, 2020

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News

New body to investigate aviation accidents BY DOMINICK ANDOH

Parliament is expected to approve a bill brought under a Certificate of Urgency by the Aviation Ministry for the establishment of an Accident Investigation Bureau that will be mandated to investigate all aviation incidents and accidents in the country, in line with international best practices. The setting up of the specialised agency will prevent the current situation where the aviation industry regulator, Ghana Civil Aviation Authority (GCAA), is heavily involved in investigating incidents and accidents involving operators that it regulates. For instance, the regulator was key in investigating the Allied Air accident in 2012, the Antrak Air incident in 2013, and the Starbow Airlines incident in 2017. Aside curing the conflict of interest in the current investigative process, establishing an independent accident investigation body was one of the key recommendations

of the International Civil Aviation Organisation (ICAO) after a recent assessment and is in line with best practice for regulators not to investigate such incidents themselves. The bureau, when established, will also be responsible for investigating aircraft incidents and accidents in the oceanic region within the Accra Flight Information Region. For instance, the National Transportation Safety Board (NTSB) is the organisation responsible for investigating civil aviation incidents and accidents in the United States. In civil aviation, an incident is an occurrence, other than an accident, which affects or could affect the safety of flight operations, whereas an accident is an occurrence associated with the operation of an aircraft which takes place between the time any person boards the aircraft with the intention of flight and the time when all such persons have disembarked—and in which any person suffers death or serious injury and is hospitalised for more than 48 hours.

The work of the Accident Investigation Bureau will be imperative in reducing the annual accident costs attributed to general aviation in Ghana and the West Africa sub-region. In recent times there have been major initiatives, such as infrastructural projects and systems enhancements, which combined with this legislation are gradually positioning the country at the heart of civil aviation in the

sub-region. Funding for Accident Investigation Bureau The new accident investigation body is to receive 1.5 percent of the Airport Passenger Service Charge (APSC), a levy which forms part of the cost of domestic and international air tickets. The Ghana Airports Company, which receives the revenue from the APSC, is now required to give 1.5 percent to the new agency.

IMF Country Rep: Elevated public debt has exacerbated pandemic impact BY NII ANNERQUAYE ABBEY

The Country Representative of the International Monetary Fund (IMF) Albert Touna Mama has said mounting public debt before the Covid-19 pandemic has exacerbated the impact of the virus on subSaharan African countries like Ghana. Speaking on a webinar hosted by policy think tank IMANI on the topic, “Opportunities and Challenges of Public Financial Management Systems to Respond to COVID-19 in Africa”, Mr. Touna Mama said it is not surprising to see Ghana, among others, ask the Fund for emergency support to battle the effects of the pandemic. “There is very little space for countries on the continent not to be affected. We were already warning countries in the last few years of increasing debt and very little fiscal space. This goes beyond Ghana,” he said. “It is therefore not surprising

to see some of these countries requesting emergency financing,” he added. At the onset of the virus in March, the Washington-based lender granted an application by Ghanaian authorities for an emergency facility to battle the economic impact of the pandemic. The Fund, under its Rapid Credit Facility, granted a US$1bn loan to help address the urgent fiscal and balance of payments needs that Ghana is facing, improve confidence as well as support from other development partners. Mounting debt, narrow fiscal space According to the Bank of Ghana, the country’s public debt as at March 2020 stood at GH¢236bn, representing 59.3 percent of GDP— having increased steadily from 55.1 percent of GDP as at January 2020. The IMF Country Representative argued that the coronavirus has presented a fine opportunity

for Ghana to pursue a fiscal consolidation which would require rationalising some expenditure lines as well as seeking to ensure higher tax compliance to raise additional revenue. Dr. Theo Acheampong, an economist who also spoke during the webinar, reiterated calls for the government to reassess some of its expenditure lines as a means of reducing the widening budget deficit. “What COVID-19 has done with the loss of the revenue is that it has created a much bigger funding gap and we have to resort to few other sources to plug that gap. Even with the gap that existed [pre-COVID-19], we could still have pursued a few of these rationalisation initiatives to more or less reduce how big this gap would be. “Some of these savings could actually then mean we probably would run under 6 percent to 6.5 percent of GDP deficit, which is

Albert Touna Mama believes the pandemic’s havoc is worsening Africa’s already dire fiscal situation

probably 1.5 percent lower than the deficit estimates now that we are expecting a between 8 to 10 percent budget deficit,” he said. Dr. Acheampong argued that initiatives like the Nation Builders Corps (NABCO), which provides stopgap employment to about 100,000 graduates, need to be reassessed in order to create more value as well as make more savings to create more fiscal room.

FRIDAY JULY 17, 2020

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FRIDAY JULY 17, 2020

People’s Pension Trust and AirtelTigo Money launches mobile pension “RetireRite” People’s Pension Trust, an awardwinning corporate trustee, and AirtelTigo Money (ATM) have launched a new personal pension product called ‘RetireRite, a tier 3 mobile pension and savings product aimed to help Ghanaians lead a lifestyle they want post retirement. Through this partnership, both existing and new AirtelTigo customers can subscribe, contribute as low as GHS1 and receive their claims via AirtelTigo Money. To subscribe to the ‘RetireRite’, customers are to dial *110*4# and follow the registration steps. The entire process from opting, payment and to claim has been made simple for customers. Once a customer register as a member two accounts are opened -- retirement account and savings

account. All payments made are divided into two equal parts for each account. In addition, customers can withdraw up to 50 percent from the savings component of their pension account six months after the initial deposit. Furthermore, a life bonus cover has been embedded in the product to ensure that the beneficiaries of a deceased member receive up to four times the total contributions made by the deceased member during the previous calendar year. RetireRite is a voluntary pension scheme which provides means for any individual to save towards their retirement with the least amount of GHS1. Also, a customer decides on the frequency of payments into the scheme starting from GHS1.

“We are excited to partner with AirtelTigo Money,” says Saqib Nazir, acting Chief Executive Officer for People’s Pension Trust. “It’s clear that people are looking for innovative digital solutions, especially in this Covid-19 era to do all manner of transactions. With RetireRite, we are meeting this objective by putting the power in their hands to make the right financial decisions for their lives now and in the future.” He explained that in an event a customer decides to stop contributing to the scheme, the customer can only access the money in their retirement account at 60 years. “We are proud to partner with the People’s Pension Trust as we aim to further help create financial inclusion, social protection and

improving lives of our customers using mobile technology,” says the Chief Executive Officer at AirtelTigo, Murthy Chaganti. He adds: With our secure AirtelTigo Money platform in this market, we believe that the introduction of ‘RetireRite’ will create a more convenient and secure way for customers.”

Webster University introduces new Master of Arts in Human Resources Management Since its opening in Accra in 2013, Webster University’s Ghana campus has offered two Master’s degree options – the Master of Business Administration (MBA) and a Master of Arts in International Relations (MAIR). Next year, the American university will add to its selection a new Master of Arts in Human Resource Management (HRM) degree program set to launch in January 2021. This program is offered by Webster’s George Herbert Walker School of Business & Technology. The HRM program focuses on maximizing the importance of the human element in organizations through an extensive view of the social, behavioral sciences and management theories relating to the general work life dynamics. Students will better understand the intricacies of managing people at the workplace and be equipped to develop solutions to the management problems that confront both individuals and organizations daily. Webster University Ghana is accredited in the USA by the Higher Learning Commission and by Ghana’s National Accreditation Board. The university’s personalized approach to higher education and unique course design allows students to complete their degree in roughly 14 months. Current students and alumni have found great value in earning an American degree and have truly

benefitted from the overall global educational experience Webster University offers. Similar to all other graduate courses offered at Webster, this program will be taught by accomplished faculty and leading industry experts, bringing to the classroom the wealth of experience and expertise in their respective fields. The program provides comprehensive coverage of the major HR responsibilities, addressing both operational and strategic aspects of the field. This is an amazing opportunity for professionals at all levels to learn from practiced academics and scale their job skills. “As a university, we always seek to offer high-quality programs that meet both regional and global needs. The field of HR is an evolving one and career prospects are not only available but growing as the world of work is constantly changing. Webster provides a truly international curriculum and have faculty from all corners of the globe teaching our students which helps foster cross-cultural dialogue and understanding. We are excited for this new addition for which we are seeing great interest and we look forward to receiving our first cohort of students in the Spring of 2021”, says Campus Director, Christa Sanders. The university made a subtle introduction of the new program during a recent online

HR Management Masterclass, addressing prevalent workforce changes due to the COVID-19 pandemic including the surge in remote work arrangement across various industries. Led by Webster adjunct faculty, Dr. Samuel Quartey along with guest presenter and renowned HR expert, Dr. Stella Agyenim-Boateng of the VRA, the virtual class delved into a SWOT analysis of working remotely and the role of technology in the new proliferation of flexible work. The online event had an impressive turnout, speaking to the relevance of the topic discussed and was furthermore, a sampling of a Webster graduate class. Webster’s classes whether on- or offline are American teaching style, encouraging engaging discourse between students and faculty, and an international perspective. During the event, Webster Ghana’s Academic Director, Dr. Michael Williams, shared on the 36 credit

hours that make up the new HRM degree curriculum, including courses in Organizational Behavior, Training & Development and Employment Law, to name a few. Webster University’s graduate classes have been tailored to fit the corporate professional’s schedule with top-notch online education systems allowing students to earn an American degree from the comfort of their home, during this season of social distancing. Teaching and learning for the new HR Management program is currently scheduled to take place in the classroom at the university’s modern and conveniently located campus at East Legon. Prospective students are welcome to contact Webster Ghana’s Admissions Office on 054 012 0849/054 012 0869 for further details on this new and exciting program addition and to apply.

FRIDAY JULY 17, 2020

Feature

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Face protection masks (FPM) could inject at least US$1.5billion annually into the African economy BY WAMKELE MENE AND PROF. DOUGLAS BOATENG

n June 27th 2020 MarketWatch reported that the global disposable face mask market size was anticipated to reach US$ 23.81 billion by 2027. On June 30th, Goldman Sachs released an extensive economic analysis of why the wearing of a mask is a must. By studying the link between coronavirus infections and mask mandates in US states and overseas, the reputable global investment bank estimated a national directive could cut the daily growth rate of confirmed cases by one percentage point to just 0.6%. The reduction according to them could prevent the need for lockdowns that could wipe 5% off US GDP. The implication of not wearing a mask and its associated health and socio-economic consequences are no different in emerging and developing economies. The unfortunate coronavirus (SARCOV-2) and associated COVID-19 pandemic has, however, resulted in the emergence of a face protection mask (FPM) industry. Supply chain and industrialisation expert, Professor Douglas Boateng reckons that in Africa, the rapidly evolving sector could contribute approximately $1.5billion annually to the continent’s economy. “This high demand during these unprecedented times is largely a result of the growing need for personal protective equipment (PPE) spurred on by the global Coronavirus pandemic as well as the latest mandate by the governments regarding the use of face protection masks at all times in especially public places,” Boateng said. US Presidential advisors Dr. Fauchi and Dr Birx, Director General of WHO, Dr Tedros Adhanom Ghebreyesus, leading scientists including UCSF Professor of Epidemiology & biostatistics George Rutherford, Ghana’ Presidential advisor on health Dr Nsiah Asare, Harvard Global Heath Institute’ Dr Ashish Jha, Professor Ampofo from Noguchi Institute for Medical Research, University of Massachusetts’ Professor Erin Bromage, George Washington University’s Professor Jonathan Renier as well as Prof Stephen H. Powis, national medical director for England, in the National Health Service, US’ CDC and world leaders including President Ramaphosa, Premier Angela Merkel and President Nana Akufo-

Addo continue to encourage the wearing of face masks to reduce the risk of spreading and contracting the Coronavirus. Many European countries according to Goldman Sachs now have mask mandates. In most of East Asia, it is generally acceptable to wear masks whilst sick or during an outbreak of a disease. The acceptance of masks as a means to minimise the potential spread of a disease in Africa is also rapidly changing. According to Prof Boateng, widening demand for quality reusable cloth-based face protection masks (FPM) over the next decade will open up opportunities for the local development and supply of these essential PPE. “Every crisis presents opportunities for visionary business and political leaders. SAR-COV-2 cases in Ghana and across the globe have prompted the need for an increased supply of FPMs as a means to prevent the spread and reduce the number of infections. This growing need to contain the virus as well as rising health awareness among Ghanaians is driving market growth in this area,” he said. A new report by Grand View Research indicated that a global compound annual growth rate of 53% is expected over the forecast period. This prediction could have a significant impact on the opportunities that are available to the Ghanaian textile industry as well as smaller and medium sized enterprises operating in this sector. With the FPM industry expected to more than double over the next 10 years, Boateng has urged African businesses to embrace the opportunities that have emerged and lead the way in FPM production and supply in the

region. “With a share of 33.9% in 2019, the Asia Pacific region currently dominates the disposable face mask market. The market is also controlled by a few key players. These include the likes of Uvex Safety Group, Polison Corporation, Kimberley Clark Corporation, RPB Safety LLC, Mine Safety Appliances (MSA), Moldex, Uvex, KOWA, and SAS Safety Corp. Alpha Pro Tech, 3M Company, Honeywell, Bullard, Delta Plus Group, The Gerson Company, ILC Dover, Intech Safety Private Limited, and Shigematsu Works Company Limited. Via various agents, many of these companies export their FPM into Ghana. Ghanaian businesses should be looking to gain some of this market share, Boateng said. “The latest statistics from amongst others, the World population review put Africa’s population at 1.1 billion people. At least 50% of the population require FPMs. This means over 550 million Africans are in need of FPMs. Each of these 550 million people will need at least 3 masks, equating to approximately, US$1.55 billion masks . With an average two-layered cloth-based FPM costing US$1 USD, the market for these PPE could reach US$1.55 BILLION annually,” he added. According to Boateng, enhanced FPM production and supply could not only have a direct impact on the region textile industry, but could also have significant spin offs in other areas. “Hundreds of thousands of jobs could be created through initiatives focused on FPM and other PPE production. Women and the youth could particularly benefit from access to jobs in the emerging sector and further opportunities for self-employment could also arise,” he said.

Commenting on the growing opportunities in this sector, the Secretary-General of the African Continental Free Trade Area H.E. Mr. Wamkele Mene noted that demand for FPM could have a significant impact on economic development and sectoral growth in the coming years. “Äs more and more people become attuned to the need for FPMs, opportunities for regional production and distribution of disposable as well as reusable face masks will increase. The AfCFTA is in full support of the use of FPMs to reduce the spread of the Coronavirus and is mindful of the impact that growth in this sector could have for regional wide job creation and economic empowerment ,” SecretaryGeneral Wamkele said. While opportunities in the sector look promising, Boateng warned that the medium to long term economic sustainability of the FPM industry is dependent on African Government support and policy development. “There must be a strategy and implementation plan for the entire supply chain. AfCFTA and Africa Governments must initially protect the sector to ensure there is no dumping and price undercutting by suppliers from outside the continent. Through innovative subsidies there could even be guaranteed off takes for schools and universities, among others,” he concluded. Wamkele Mene Secretary GeneralAfCFTA. Professor Douglas Boateng is an international chartered director and Africa’s first ever appointed Professor Extraordinaire for Industrialisation and Supply Chain Governance. For more information on AfCFTA and Panavest please visit https://www.africancfta.org and www.panavest.com

FRIDAY JULY 17, 2020

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ICT

The CIO Diaries: A supply chain-wide BCP and cyber-resilience program BY KWADWO AKOMEA-AGYIN

s companies were forced online in recent times, most reassessed their Business Continuity Plans (BCP) and Cyber-Resilience Programs to come to terms with the new normal of putting even critical information on the internet to ensure business continuity. While most companies have an internal BCP (and in most cases a Cyber-Resilience Program), very few companies involve their supply chain. This has given rise to the number of cyber-attacks that come through the supply chain (third-party attacks). Thirdparty attacks get worse when vendor/supplier relationships are terminated without the proper information and cyber risk procedures that must be outlined in the contract as part of the termination clause. For example, data/information destruction procedures and verification. This article draws on existing literature to unearth the importance of a supply chain-wide Business Continuity Planning and Cyber-Resilience Program aimed at protecting companies from all critical angles. Recent cyber-attacks have pointed to the ever-increasing need to pay attention to thirdparty risk. Third-party attacks occur when an attacker is able to infiltrate an organization’s systems through its supply chain partner (vendor or supplier), who has access to the organization’s systems, information, and data. This has caused a widening of the attack surface to areas where organizations have little to no control. A good example is the 2014 Target breach and the 2019 Equifax breach, where security breaches occurred through thirdparty vendors. Another good example is the Verizon breach caused by their analytics services provider and involving the leakage of six million customer records (account and personal information). The provider put 6 months of customer service logs on a public Amazon S3 storage server. [What is a supply chain attack? Why you should be wary of third-party providers. (2019, January 25); www.csoonline. com]. As we move our applications and systems closer and closer

to the cloud, third-party risk management has become ever so important to ensure the availability, confidentiality, and integrity of our information and data that sit with them. The diagram below is an example of the complex tier of supply chain partners for a typical organization. How to involve those close to you Third-party risk is a business risk that needs continuous management. To ensure that this business risk is mitigated and controlled, the following measures are recommended. 1. Proper oversight of third-party cyber risks beyond compliance: National Institute of Standards and Technology (NIST) recently introduced a cyber supply chain risk management (SCRM) as a critical organizational function in the NIST cybersecurity framework version 1.1 (www. nist.gov). Notwithstanding, to ensure proper oversight, some companies require their suppliers and vendors to do the following: a. Sign Service Level Agreements (SLAs) that demand a level of security compliance commitment from supply chain partners; even to the level of particular security controls to adopt. b. Perform self-assessments and audits and share the results with the client c. Allow customers to perform their own penetration testing on their data and its level of protection in the vendor environment d. Invest in employee cyber awareness training programs to convert supplier/vendor employees from susceptible/ oblivious targets to cyber-aware custodians for the entire supply chain. e. Purchase cyber insurance 2. Alignment & Synchronization: Developing a collective strategy with your vendors and suppliers will ensure a common cybersecurity culture, shared norms, and processes in protecting the entire supply chain and in responding to incidents. It also offers a tool for effective information sharing and a synchronized response when one partner in the supply chain is attacked. Shared knowledge which includes the sharing of experiences among supply chain partners helps to improve post-incident strategies for all involved.

Figure 1: A typical organization’s supply chain ecosystem.

The challenge with involving supply chain partners as prescribed above is becoming too paranoid with protection and eventually restricting easy business flow. Also, a company may have up to 4 or 5 tiers of suppliers and vendors, a large number of upstream players in their supply chain, adding to the complexity of implementing such initiatives. How deep are you willing to go in ensuring supply chain risk oversight? The solution to this challenge lies in identifying your critical supply chain link. To identify the critical link, you need to know who has access to critical information, systems, and critical data through tools such as big data analytics and/ or penetration testing. Partners in this critical link should be involved from the onset in the design and implementation of the adopted Cyber-Resilience Program for the entire supply chain for enhanced resilience and a long-term adaptive capacity [Managing cyber and information risks in supply chains: insights from an exploratory analysis. (2019, March 11). www.emerald. com] It is also recommended to explore the trade-off between cost, efforts, and benefits, related to the adoption of specific initiatives for the supply chain. The introduction of third-party risk regulation by governments would also help manage the trade-off. With these, vendors and suppliers can manage their relationship and cost when they find themselves as a critical link to multiple clients. One such regulation could see an independent audit firm or group

of firms certify a vendor or supplier’s third-party cyber risk status on a regular basis so that companies who choose to do business with them can manage their business risk. Conclusion Third-party cyber risk management has become ever so important to ensure cyber resilience and business continuity in the whole supply chain. With the existence of little to no third-party cyber risk regulation, it is important that companies adopt effective strategies, some of which have been outlined in this article, to protect the whole supply chain and ensure the availability, integrity, and confidentiality of information and data for business continuity. Whiles doing so, companies should find the right balance of cost, effort, and benefits so as not to stifle the business flow. The fast-tracking of thirdparty cyber risk regulation is encouraged to help in this regard and also to provide smaller vendor and supplier organizations with a competitive edge.

Kwadwo Akomea-Agyin; | Digital Solutions Expert & Business Analyst | Member, Institute of ICT Professionals Ghana. For comments, contact email: kojo.e@ live.com | Skype: Kwadwo_2010 | LinkedIn: Kwadwo Akomea-Agyin, PMP, MRes.

FRIDAY JULY 17, 2020

AgriBusiness

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GH¢1.9m boost for poultry and livestock feed production Wangara Green Ventures, an impact investment fund in Ghana, has announced a GH¢1.9m investment in Akwaaba Feeds Limited, a climate-smart agribusiness, to support the company manufacture high quality and affordable feed for the poultry and livestock industry using insect protein. The injection of fresh capital will enable Akwaaba Feeds to double its production capacity, expand its distribution channels to make their quality feed more accessible to small holder farmers as well as scale up the production of insect protein in commercial quantities. Akwaaba Feeds is a leading poultry and pig feed manufacturing company in the country that produces high-quality poultry and pig feed for sale to poultry and livestock farmers. The feed variety is formulated with the support of Bioproton Pty Ltd, an Australian based developer and manufacturer of a high-quality enzyme, surfactant, and probiotic feed supplements. The company also has a strategic partnership with West Africa Feeds, an incubatee of the Ghana Climate Innovation Centre (GCIC), for the production of low cost, high-protein feed base made from insects, which serves as an affordable yet equally

nutritious alternative to fish meal used in typical protein base poultry feeds. Founded in 2017, the company has grown from two distributors and four workers in 2018 to four distribution outlets and 28 staff in 2019 with a revenue growth of 225percent. The company currently has distribution outlets in Accra, Cape Coast, Takoradi and Kumasi. The first commercial insect protein feed manufacturer in Ghana, Akwaaba Feeds would be better placed to contribute immensely to local poultry production and SDG goals of Zero Hunger, Good Health and Wellbeing, and No Poverty in a climate-resilient way. The Ministry of Food and Agriculture in Ghana estimates 180,000MT of poultry meat is imported yearly to augment local poultry supply of 58,000MT, leaving a poultry output gap of 162,000MT annually. With growing uncertainty about food security as well as Government favorable policies in support of local poultry production, Wangara’s investment couldn’t have come at an opportune time. According to the Chief Executive Officer of Akwaaba Feeds Ltd, Mr. Sylvester Cooper; the investment

from Wangara Green Ventures is a game-changer for the company and will help reposition the company to take advantage of the government’s drive to grow the poultry sector by reducing the importation of frozen chicken into the country which has a great potential to create employment and reduce the pressure on foreign currencies. He again indicated that the most exciting aspect of the deal is the technical support Akwaaba Feeds will receive from Wangara to aid its growth strategy. In addition to the GHS1.9million investment, Akwaaba Feeds is also receiving technical assistance support in the form of other

business development services to enable them to realize their growth plans. Wangara Green Ventures is a climate-focused impact investment company that invests between GHS 250,000 to GHS 2,500,000 in Small and Growing Ghanaian Businesses (SGBs) that are making a social and environmental impact in Ghana. Wangara also supports the growth and sustainability of these SGBs by making available preinvestment and post-investment Technical Assistance Grants. Wangara Green Ventures is sponsored by Innohub Foundation through the $3.2m Ghana Climate Venture Facility (GCVF) from the World Bank.

Establish ‘Farmers Allowance Scheme’ for aspiring young farmers A Professor of Soil Science and Plant Nutrition, at the Soil Science Department of the University of Cape Coast (UCC), Professor Kwame Agyei Frimpong, has called for the introduction of a scheme to financially support young farmers. He said the establishment of a ‘farmers allowance scheme,’ by the government, will help to promote farming among the youth. Over the years, the government has developed so many policies and programmes to lure youth into farming, yet, the majority of the youth have remained adamant given the numerous challenges in farming and the frustrating venture in acquiring lands for such purposes. However, according to Professor Agyei Frimpong, the introduction of monthly allowance will incentivize young enterprising farmers and would-be farmers in the country to venture into agriculture. This he said would cajole the youth who are not involved in agriculture because of lack of interest and passion for agriculture and are busily struggling to make a daily living. He said it is amazing that most youths are not interested in taking

up farming as a business, but rather resort to trading on our high streets for daily income. He said the government established the teacher trainee allowance for teacher trainees at the various training colleges as a means to encourage more students to offer teacher training education in the country. Since its introduction, more students who were once not interested in teachers’ education have given keen attention to teachers’ education. Professor Agyei Frimpong who was speaking on the maiden edition of ‘Akuafo Ky3 Fa,’ a newly introduced agriculture talks show programme, on Kumasi-based Oyerepa FM, noted that this would be the best approach to attract a section of the jobless youth into farming. He said agriculture has been christened as the mainstay of the country’s economy yet little attention is given to key actors involved in it. However, he said agriculture can reduce the increasing statistics of youth unemployment and underemployment in the country. Against this backdrop, he reiterated the need for the

PROFESSOR KWAME AGYEI FRIMPONG

government to consider instituting ‘farmers allowance scheme.’ He said in recognition of the importance of agriculture to the nation, and particularly in addressing youth unemployment and also ensuring food security, the government must act now by establishing the scheme solely for the youth who take up farming as a business.

FRIDAY JULY 17, 2020

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The Next Phase of the Crisis: Further Action Needed for a Resilient Recovery BY KRISTALINA GEORGIEVA

hen the Group of Twenty industrialized and emerging market economies (G-20) finance ministers and central bank governors last met in April, the world was in the midst of the Great Lockdown forced by the outbreak of COVID-19. As they meet virtually this week, many countries are gradually reopening, even as the pandemic remains with us. Clearly, we have entered a new phase of the crisis—one that will require further policy agility and action to secure a durable and shared recovery. Last month, the IMF reported a worsened economic outlook and projected global growth to contract by 4.9 percent this year. Some better news is that global economic activity, which posted an unprecedented decline earlier this year, has started to gradually strengthen. A partial recovery is expected to continue in 2021. The exceptional action taken by many countries, including the G-20—through fiscal measures of about US$11 trillion and massive central bank liquidity injections—put a floor under the global economy. This extraordinary effort should not be underestimated. But we are not out of the woods yet. A second major global wave of the disease could lead to further disruptions in economic activity. Other risks include stretched asset valuations, volatile commodity prices, rising protectionism, and political instability. On the positive side, medical breakthroughs on vaccines and treatments could lift confidence and economic activity. These alternative scenarios highlight that uncertainty remains exceptionally high. Many countries will be deeply affected by the economic scars of this crisis. Severe labor market dislocations are a major concern. In some countries, more jobs were lost in March and April than were created since the end of the global financial crisis. School closings also impacted people’s—in particular women’s— ability to participate in the labor market. Though fortunately some jobs have since been regained, the employed share of the working-age population stands much lower than in early 2020. Moreover, the full extent of the impact on the labor market is likely much higher as many employed people are facing reduced hours. Bankruptcies also are becoming more common as firms exhaust their cash buffers. And human capital is at risk: the education of over a billion learners across 162 countries has been disrupted, for example.

The bottom line is that the pandemic is likely to increase poverty and inequality, further painfully exposing weaknesses in health systems, the precariousness of work, and the challenging prospects for the young of accessing opportunities they desperately need. For a more inclusive and resilient recovery, we need further action in two key spheres: (1) domestic policies and (2) collective efforts. 1. Domestic Policies: Sustaining Targeted Lifelines Countries are at different stages of the pandemic, so their responses will differ as well. As the IMF has emphasized, emerging market and developing countries will be the hardest hit by this crisis—they face bigger challenges and steeper tradeoffs than the advanced economies— and they will need more support for longer. That said, there are several domestic policy imperatives that apply broadly. Protect People and Workers. Across the world, countries have ramped up economic lifelines to individuals and workers. These safety nets must be maintained as needed and, in some cases, expanded: from paid sick leave for low-income families, to access to health care and unemployment insurance, to broader cash and in-kind transfers for those in the informal sector— with digital mechanisms often best for delivery. Encouragingly, countries with higher inequality have devoted larger shares of support to households, including vulnerable groups. At the same time, many jobs lost will never come back with the crisis triggering long-lasting changes in spending patterns. So workers must continue to be supported, including through reskilling, to help them move away from shrinking sectors and toward expanding ones. Support Firms. People and workers are also supported when lifelines are extended to viable businesses. Across the G-20, more firms have been supported through relief from taxes or social security contributions, grants, and interest rate subsidies. A significant portion was directed to small and medium enterprises (SMEs)—especially important since SMEs are a major engine of employment. Without such support, staff analysis suggests that SME bankruptcies could triple from an average of 4 percent before the pandemic to 12 percent in 2020, threatening to add to unemployment and harm bank balance sheets. Increasing bankruptcies will leave governments with difficult choices on whether and how to support firms. Sound analysis of liquidity and solvency prospects of firms can help guide these choices. Liquidity provision might be enough for

industries where revenue losses are temporary, for example, while equity injections may be needed for some insolvent firms that are essential for fighting the pandemic or on which many lives and livelihoods depend. The fiscal costs of this support are substantial and rising debt levels are a serious concern. At this stage in the crisis, however, the costs of premature withdrawal are greater than continued support where it is needed. Of course, measures must be targeted and budgets assessed with an eye to cost-effectiveness— and to medium-term debt sustainability. Preserve Financial Stabilit. Job losses, bankruptcies, and industry restructuring could pose significant challenges for the financial sector—including credit losses to financial institutions and investors. Regulation and supervision should support the flexible use of existing capital and liquidity buffers in line with international standards— which in turn would facilitate the continued provision of credit to viable businesses. Monetary policy should remain accommodative where output gaps are significant and inflation is below target, as is the case in many countries during this crisis. An important domestic priority for policymakers is to ensure that money markets, foreign exchange markets, and securities markets can function effectively. Coordination across central banks and appropriate support from international financial institutions will also continue to be essential in that regard. 2. Collective Efforts: Capturing Opportunities for a Better Future Indeed, international cooperation is vital to minimize the duration of the crisis and ensure a resilient recovery. Areas where collective action is key include: • Guaranteeing adequate health supplies: through cooperation on the production, purchase, and fair distribution of effective therapeutics and vaccines, including across borders. • Avoiding further ruptures in the global trade system: countries should do their best to keep global supply chains open,

accelerate efforts to reform the World Trade Organization, and seek a comprehensive agreement on digital taxation. • Ensuring that developing countries can finance critical spending needs and meet debt sustainability challenges: continued progress on the G-20 Debt Service Suspension Initiative is especially important. • Strengthening the global financial safety net: including consideration of further extensions to swap lines and enhanced use of the IMF’s special drawing rights (SDRs). The IMF, for its part, has responded to this crisis in an unprecedented way—including emergency financing for 72 countries in three months. With the support of our 189 member nations, we aim to do even more in this next critical phase. We can take inspiration from the great Lebanese poet, Khalil Gibran, who once said: “To understand the heart and mind of a person, look not at what he has already achieved, but at what he aspires to.” I believe that despite the pain and suffering that the pandemic has caused, we can aspire to transform our world. We have a once-in-acentury shot at building forward better: a world that is fairer and more equitable; greener and more sustainable; smarter and, above all, more resilient. To seize this opportunity and achieve greater resilience, action is needed to: (1) invest in people—in education, health, social protection, and in preventing the sharp increase in inequality this crisis could produce; (2) support low-carbon and climate-resilient growth, including through smart allocation of public spending; and (3) take advantage of the digital transformation, whether through greater use of e-government platforms to enhance efficiency and transparency while cutting red tape, e-learning, or remote work. G-20 policymakers—and all of us working together—must seize the opportunity to make this future a reality. (IMF.org)

FRIDAY JULY 17, 2020

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G20, Heal Thyself

BY JEFFREY D. SACHS

he G20 ministers of finance meet this week under the auspices of Saudi Arabia, which holds the group’s presidency this year. But it is hard to imagine the G20 countries leading the world, as they like to pretend that they do. Most of them can’t effectively lead themselves through the current COVID-19 crisis. As the world’s largest economies, the G20’s members have one overriding responsibility at the upcoming meeting: to agree on actions to suppress the pandemic. A few G20 countries are doing well; the laggard countries need to take urgent measures to stop the spread of the virus. All G20 countries need to cooperate on global-scale policies to overcome the health crisis. An overview of the G20 countries is sobering. Many are so poorly governed that they have been utterly ineffective in containing the pandemic. Judging by data from the past two weeks, the biggest G20 failure, at 176 new cases per day per million population, is Brazil, led by the reckless populist Jair Bolsonaro, who has himself now contracted the virus. The secondbiggest failure is the United States, led by the Bolsonaro of the north, Donald Trump, with 137 new cases per day per million population. The two other G20 countries with more than 100 new cases per day per million population are South Africa (129) and Saudi Arabia (112). The next tier of countries, reporting 10-100 new cases per day per million population, includes Russia (47), Mexico (43), Turkey (16), India (15), and the United

Kingdom (11). These countries are all at risk of a significant rise in transmission, with Mexico and India appearing to be at the greatest risk. Six of the G20 countries currently report 1-10 new cases per day per million population – reasonably low rates that make possible decisive suppression of the virus in the near future: Canada (8), France (8), Germany (5), Indonesia (5), Italy (4), and Australia (3). Only three of the G20 countries report under one new case per day per million population: South Korea (0.96), Japan (0.9), and China (0.01). These three northeast Asian countries have displayed the necessary combination of political leadership, public-health professionalism, and responsible behavior (wearing face masks, maintaining physical distancing, and enhancing personal hygiene). An epidemic is a social phenomenon and needs a social response. As South Korea, Japan, and China have shown, the virus can be suppressed – that is, new cases can be brought to near zero – if a basic logic is followed. Those who are infected with the virus need to protect those who are not infected. They can do this in four ways during the two weeks while infectious: keep their physical distance; wear face masks; stay at home and away from others; and remain in a public quarantine if the home is not safe. This protection does not have to be perfect; indeed, it won’t be. It has to be good enough, however, to ensure that on average an infected individual infects less than one other. All people must be cautious until the pandemic is suppressed. That means wearing face masks in public places, keeping a prudent distance

from others, and monitoring ourselves and our close contacts for symptoms. Officials must make available testing sites and support services for the isolation of infected individuals, whether at home or in public facilities. Managers of workplaces must take precautionary measures, including remote work or safe physical distancing on site. The egregious G20 failures have in most cases started at the top. The likes of Bolsonaro and Trump are braggarts, bullies, dividers, and sociopaths. Their countries’ massive death tolls have moved them neither to expressions of sympathy nor to effective publichealth policies. One sees similar perverse behavior among other G20 strongmen. Whereas women leaders (in New Zealand, Finland, Denmark, and elsewhere) have a superior track record on the pandemic, the G20, alas, has no woman leader. Trump is a special case, because he governs the world’s greatest military power. The sociopathy of a US president is a worldwide tragedy, unlike that of a Brazilian president (though Bolsonaro’s sociopathy affects the world through an anti-environmental agenda that fuels the wanton and deliberate destruction of the Amazon). Trump’s decision to withdraw the US from the World Health Organization in the midst of the pandemic battle has immediate global repercussions. The same is true of his efforts to launch a new cold war with China, instead of saving his own country and cooperating with China to help the rest of the world fight the pandemic. In this, China obviously has much to offer. It has used the world’s most decisive measures

to suppress a fulminant pandemic (after the first outbreak in Wuhan) and may well be on the way to producing the first useful vaccine. Yet societal outcomes are not just the result of political leadership. They also depend on culture and social responsibility. The Confucian culture of northeast Asia emphasizes social cooperation and pro-social personal behavior such as wearing face masks. American hotheads, stoked by Trump, loudly proclaim the freedom to reject face masks – that is, the freedom to infect other Americans. One would rarely hear such a claim in northeast Asia. What is also notable is the failure of US business leaders to take measures to contain the epidemic. One of America’s leading entrepreneurs, Elon Musk, demanded the reopening of the economy (and his business), rather than using his engineering genius to help contain the virus. Other top business leaders, too, have contributed little or nothing to suppressing the epidemic. This, too, is part of American culture: money over lives, personal wealth over the social good. The G20 finance ministers will no doubt talk of money – budgets, stimulus, monetary policy – and so they should, but only after they have spoken about stopping the virus itself. There is no way to save the economy without stopping the pandemic. Ensuring effective public-health measures is today’s essential economic policy. Jeffrey D. Sachs, Professor of Sustainable Development and Professor of Health Policy and Management at Columbia University, is Director of Columbia’s Center for Sustainable Development and the UN Sustainable Development Solutions Network. Copyright: Project Syndicate, 2020. www.project-syndicate.org

FRIDAY JULY 17, 2020

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FRIDAY JULY 17, 2020