Business24 Newspaper - July 24, 2020 by Business24 Online

EDITION B24 | 77

THEBUSINESS24ONLINE.NET

FRIDAY JULY 24, 2020

Ofori-Atta unveils GH¢100bn plan to ride out COVID-19 storm

Oil revenue forecast sees massive cut as virus effect rages BY BENSON AFFUL

MORE ON [PAGE 13

*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:

editor@thebsuiness24online.net

17.07

NEWS/EDITORIAL

Subsrcibe thebusiness24online.net/subscribe

FRIDAY JULY 24, 2020

EDITORIAL

Automobile hub vision achievable Government’s quest to make the country an automobile hub in the sub-region is progressing at fast pace.

Wash your hands 2

Cover your cough 3

The planned establishment of an Automobile Industry Development Centre which will among other things coordinate licensing for vehicle assemblers and manufacturers, and monitor their compliance with industry regulations, and financing scheme for new vehicle buyers is very laudable. With the expected implementation of the African Continental Free Trade Area (AfCFTA) once the COVID-19 pandemic is brought under control, this Centre and other policy decisions earlier to facilitate the assembly of automobiles in the country will lead to export of the vehicles to other states in the sub-region.

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)

The United Nations Economic Commission for Africa estimate that based on the number of participating countries, the AfCFTA is the largest trade agreement since the formation of the World Trade Organisation. Its implementation, the Commission noted, will form a $3.4 trillion economic bloc with 1.3 billion people across the continent. The data show that the hub vision will be greatly beneficial to boosting the country’s foreign exchange earnings. This paper supports government’s drive to achieve the automobile hub vision.

Ofori-Atta unveils GH¢100bn plan to ride out COVID-19 storm CONTINUED FROM COVER

Wear a mask

Presenting the mid-year Budget Review to Parliament on Thursday, Mr. Ofori-Atta said: “In order to support these new major developments, Mr. Speaker, Government will establish an Automobile Industry Development Centre which will among other things, coordinate the technical processes for licensing vehicle assemblers and manufacturers, and monitor their compliance with industry regulations and standards. The Centre will also coordinate the implementation of a Vehicle Financing Scheme which will link financial institutions to individuals and groups interested in purchasing newly assembled vehicles in Ghana. Furthermore, it will manage an Automotive Skills and Technology Upgrading Programme to provide requisite skills for the industry.”

fact that the success of a medium-term initiative like this would very much hinge on limiting the damage caused by the virus. So, from now to the end of the year, which is the first phase of CARES, the government is extending the duration of some of the emergency programmes implemented to provide relief to individuals and businesses alike. While the first phase of CARES is very crucial, the true impact of the programme will be felt in the second phase. During this period (2021-23), the Finance Minister told Parliament, government will vigorously promote the consumption of locally-produced goods and services in order to support local businesses and generate employment. “To this end, MDAs and MMDAs will be required to prioritise the procurement of local goods and services. The aim is to achieve up to 50 percent of all government procurement sourced locally,” the Minister said. Mr. Ofori-Atta’s audacious plan would not have been complete without a mention of some of the flagship government initiatives. Under the plan, government will review and optimise implementation of programmes such as One District, One Factory, Planting for Food and Jobs, Free SHS, among others, for greater results and fiscal sustainability.

As far as infrastructure development is concerned, government intends to pursue public-private partnerships (PPPs) or concession arrangements. “In our economic revitalisation and transformation, government has an important role to play by ensuring that the critical enabling factors are in place to make it possible for the private sector to invest and drive the expansion of production, jobs and exports. Government will, therefore, take resolute measures to improve the business environment for the private sector,” Mr. Ofori-Atta promised. No empty words The sheer audacity of the plan laid out by the Finance Minister creates some doubt about its feasibility, especially as some of government’s other less sophisticated programmes have failed to achieve meaningful results. Mr. Ofori-Atta is not oblivious to that cynicism. “We all know that a plan is only as good as its implementation; it is not enough just to raise the money. So, for the CARES programme, execution, execution, and execution will have to be the watchwords. The CARES Revitalisation and Transformation Agenda is about national survival and security, just like our response to the COVID-19 pandemic itself.

“Therefore, we need to approach it as such, with a resolute focus on implementation. We will have to pursue a ‘Whole-of-Government’ approach, and in close collaboration with our private sector and other stakeholders, and with their support as well. And we will make sure they happen,” he said. Financing It is estimated that the CARES programme will require around GH¢100bn of spending and investment inflows to fully fund the initiatives from 2021 to 2023. However, given the severe fiscal strains, the Finance Minister said government is expecting the bulk of the required funds—at least GH¢70bn –to come from the private sector, both domestic and external. “Government will therefore be proactive in making Ghana an attractive place for private investments—number one in West Africa and among the top five in Africa. Furthermore, government will do its part in financing CARES. We will, therefore, implement radical reforms to increase public revenues and to increase the efficiency of public expenditure management. We are putting in place policies and reforms to raise the tax-to-GDP ratio from the current level of 13 percent to 20 percent by 2023,” the Minister said.

FRIDAY JULY 24, 2020

Subsrcibe thebusiness24online.net/subscribe

News

Oil revenue forecast sees massive cut as virus effect rages BY BENSON AFFUL

Government has revised downwards its oil revenue forecast for 2020 to GH¢3.8bn from GH¢8.9bn, representing a 57.2 percent decrease, according to the mid-year budget review statement presented on Thursday. This, Finance Minister Ken OforiAtta said, is as a result of the significant decline in crude oil prices on the international market. The 2020 budget, presented last November, was based on an oil-price assumption of US$62.6 per barrel, and total petroleum revenue was projected at US$1.6bn (GH¢8.9bn). However, crude oil prices have fallen significantly since the outbreak of the coronavirus disease and due to a price war between leading producers Russia and Saudi Arabia. Mr. Ofori-Atta said the revised oil revenue forecast is based on an expected average crude oil price of US$39.1 per barrel, with revised projected receipts of US$660.5m

(GH¢3.8bn). Of the revised revenue projection, an amount of US$252.2m will be transferred to the Ghana National Petroleum Corporation (GNPC), a drop of 47.4 percent relative to the corporation’s initial allocation of US$479.8m. The portion of oil revenue that directly funds the budget, known as the Annual Budget Funding Amount (ABFA), will also see a reduction of 62.5 percent, from US$761.5m to US$285.8m. The Minister lamented the impact of the coronavirus crisis and depressed crude oil prices on investment in the oil sector, with exploratory projects valued at US$324m suspended due to the pandemic. Additionally, Aker Energy, the Norwegian firm, has postponed its Pecan field development. This will impact the delivery of first oil from the Pecan project, thereby postponing projected revenues to government, the Minister said. These postponements, according to him, could weaken the critical role of the oil and gas sector in propelling the economic growth of the country.

Energy think tank Institute of Energy Security (IES) has predicted that the oil market is not likely to see a V-shaped price recovery any time soon, despite the recent increases in oil prices. “Any forecast of oil demand and price getting to the pre-COVID-19 levels before end-year could be distorted by some prevailing market happenings, posing as

risks which cast shadows over the immediate recovery of the oil industry. These include a possible second wave of infections, increasing stock levels, delayed full economic recovery, return of shale production, political tension between the US and China, and the coming of the summer,” the IES told Business24 in an interview before the presentation of the midyear budget review.

MTN to beef up capex, innovate to drive growth BY PATRICK PAINTSIL

MTN Ghana, the publicly listed telecoms company, says it will invest heavily in customer-centric innovation and increase capital expenditure to optimise network performance and drive growth this year and beyond. With the pain of the Covid-19 pandemic being felt across all sectors of the economy, chief executive officer of the company Selorm Adadevoh said the company was monitoring the situation and will explore multiple scenarios to mitigate the impact of the virus on the business. “To maintain our relevance and to keep up with the dynamism of the telecommunications industry, we will continue to innovate, create and build meaningful relationships that will improve customer experience and brighten lives. Our focus on the customer is paramount and

drives continuous innovation as we transition from a traditional mobile telecommunications operator to an emerging digital operator,” he said in the 2019 annual report of the company released to the Ghana Stock Exchange. “We will continue to drive down our operational cost while efficiently investing in capital expenditure to optimise network performance,” he added. MTN Ghana increased its profit for the 2019 business year by 33.6 percent, recording an impressive GH¢1.01bn in profit after tax. Underpinning this performance, the company said, was strong service revenue growth coupled with successful execution of the company’s cost-efficient strategies. Its service revenue increased by 22.8 percent, attributable to growth in revenue from voice, data and mobile money (MoMo).

Voice revenue went up by 19.4 percent, driven by an 11.2 percent increase in the number of active subscribers, success of various customer value management (CVM) initiatives, and continued improvements on the company’s network. Data revenue grew by 32.5 percent, owing to a 26 percent growth in active data users, growth in the number of smartphones on the network, and an increase in data usage. Mobile Money (MoMo) revenue continued to grow strongly, increasing by 28 percent yearon-year to GH¢0.96 billion and contributing 18.6 percent of service revenue. The board of the company has recommended a final dividend of 4 pesewas per share, bringing the total dividend for the 2019 financial year to 6 pesewas per Selorm Adadevoh is the CEO of share, which is a 20 percent MTN Ghana increase over 2018.

FRIDAY JULY 24, 2020

Subsrcibe thebusiness24online.net/subscribe

News

Peasant farmers call for creation of special stimulus facility to access financial credit BY KWASI ANKU

The Peasant Famers Association of Ghana and its partners have called on government to create a special stimulus facility for small holder farmers. The Association said this would enable them access financial credit at very flexible and low interest rates with extended moratorium period. A statement issued in Accra and copied to the Business24 on Tuesday said they were unable to access the Coronavirus Alleviation Programme (CAP) Business Support Scheme which was targeted at micro and small enterprises and the registration requirements were inherently

unfriendly for small holder holders. It said as they await the presentation of the Mid-year budget by the Finance Minister, they were of the view that Ghana’s Covid-19 Recovery Strategy should be agriculture- led. It said this should expand into other critical sectors embracing greater usage of technology and climate resilient farming practices. The statement said it was on the opinion that government should immediately pay attention in the mid-year budget review to increasing input subsidy to farmers both in the percentage cost borne by government and the number of beneficiary farmers. It said government must improve beneficiary targeting; and reduce

leakages, diversion and smuggling in the distribution channels of subsidized fertilizer. The statement said government should prioritize the reduction of Post-harvest losses as an immediate strategy to reduce the losses of income for small holder farmers. “To this end, critical attention must be weighed on the location and siting of warehouses in food producing areas for adequate utilization,” it said. It said they should consult and support smallholder farmers to access or procure simple, affordable and appropriate handheld equipment and restructure the Agricultural Mechanization Service Centres in other to reduce Post-harvest losses.

The statement urged government to create a special model to enable farmer groups to aggregate and directly supply food produce to the numerous food distribution channels such as the School feeding program, Feeding for SHS, amongst others. It, therefore, called on government to strike a good balance between health spending and spending on food security and nutrition. This is because healthy eating/ healthy diets is a way to boost immunity of the population and if this is made integral to our recovery plan it could save us needless health expenditures subsequently.

IFC invests US$5.6 billion for private sector development in Africa and the Middle East IFC, a member of the World Bank Group, committed US$5.6 billion to private sector development in the Middle East and subSaharan Africa in fiscal year 2020, supporting businesses across the two regions to launch, grow, provide jobs and fight the impacts of the global COVID-19 pandemic. In addition, IFC committed nearly US$2 billion in short-term trade financing to support small and medium-sized enterprises (SMEs). In sub-Saharan Africa, between July 1, 2019 and June 30, 2020, IFC committed $4.6 billion in investments to private firms across the region. Despite the challenges of delivering during a global health pandemic, IFC exceeded its fiscal year 2019 commitment of US$4.1 billion. Investments focused on sectors including healthcare, agribusiness, solar energy, housing finance, infrastructure, and financing for small and medium-sized enterprises (SMEs), including in fragile and conflictaffected situations (FCS) where IFC committed more than US$1.2 billion in investments. In the Middle East and North Africa, where the COVID-19 pandemic has led to declines in oil production, tourism revenues, and remittances, IFC invested more than US$1 billion, including to support the construction of hospitals and clinics in Iraq, Jordan, Egypt, and Morocco.

Sérgio Pimenta, IFC Vice President for the Middle East and Africa, said, “Countries in the Middle East and Africa were making significant progress before the COVID-19 pandemic struck and at IFC our goal was to unlock private investment and create markets and opportunities to support that progress. In the wake of the economic crisis brought on by the COVID-19 pandemic, we stepped up the momentum to help our clients stay in business and maintain jobs which are critical to economic growth and livelihoods. We applaud the perseverance and resilience of the small, medium and large businesses that are the foundation of economies in Africa and the Middle East and we will continue to support them in the next phase of the crisis and through the recovery.” In addition to its investments in the Middle East and Africa, IFC provided Advisory Services totaling a portfolio of more than $590 million to nearly 376 projects aimed at improving the business environment, investment policy and promotion and creating markets in priority sectors. Of the advisory projects IFC supported, 45 percent were focused on improving gender equality. IFC’s investment and advisory work in the Middle East and Africa supported small businesses to access finance, linked small-holder farmers to markets, facilitated

solutions to supply chain disruptions caused by COVID-19, and increased access to electricity and renewable power sources. Since the coronavirus outbreak, IFC has focused its efforts on helping the private sector mitigate the impacts and the economic fallout. In March, IFC announced $8 billion in global fast-track financing to help companies affected by the outbreak. Since then, IFC has committed more than US$3.5 billion to companies globally. Of that, IFC has invested $517 million in Africa and the Middle East, with 66 percent going to countries eligible for financing from the International Development Association, the World Bank Group’s fund for the poorest countries. In Cote d’Ivoire, IFC provided a €25 million loan to NSIA Banque Côte d’Ivoire, allowing the bank to extend new loans to companies whose cash flows have been disrupted by the Covid-19 pandemic. In Egypt, IFC loaned $100 million to Commercial International Bank to help the bank increase support to clients and companies impacted by COVID-19. In Kenya, IFC loaned $50 million to Equity Bank Kenya to help the bank increase working capital and trade-related lending to its SME clients. In Mauritania, IFC provided $35 million, part of a $200 million credit facility

arranged by Société Générale to enable Addax Energy S.A. to deliver critical energy imports to Mauritania. In Nigeria, IFC provided a combined $200 million to Access, FCMB and Zenith banks for onlending to SMEs across a number of sectors facing working capital or trade finance challenges. In Uganda, IFC provided a $4 million loan, part of a $6.5 million financing package, to the International Medical Group (IMG), a subsidiary of Ciel Healthcare Limited, to enable the healthcare services provider to address the impact of COVID-19 on its operations. Since March, IFC also deployed $886 million through the Global Trade Finance Program (GTFP) envelope of its COVID-19 Fast Track Facility to support SMEs in the Middle East and Africa involved in global supply chains; almost 92% of the GTFP volume deployed was in low-income and fragile countries in the regions.

FRIDAY JULY 24, 2020

Feature

Subsrcibe thebusiness24online.net/subscribe

Supporting SMEs beyond surviving a crisis to thriving businesses

BY STANBIC BANK

any businesses across the world have been foisted with the burden of building resilience to withstand the impact of the COVID-19 pandemic on their bottom-line. The concentration and conversation have understandably been about keeping businesses afloat and weathering the COVID-19 storm with the hope of making up for what have been lost when the dust settles. This almost natural reaction to the current global crisis has inevitably put businesses, especially SMEs, in survival mode with a foresight that ends at the time COVID-19 ends. Because no one can predict when exactly the pandemic will be over, it is imperative for businesses to think long-term and move beyond the confines of survival to the space of thriving. Businesses have to begin re-imagining their business models and adapt to the prevailing situation with the long-term view of thriving even with the pandemic still in existence. When conversations about business growth are had, what ordinarily occupies peopleâ&#x20AC;&#x2122;s

direction of thinking is money and financial support. However, business growth is not only about financial support, but also taking strategic decisions, forging the right partnerships, learning from situations and how nimble and fast MSME change and adapt to suit new consumer behaviour and choices. COVID-19 has accelerated the adoption of digitization and automation, as well as multiple sources of searching and has shown us the best bargain. Within the context of the prevailing circumstances, certain structures would have to be put in place to further facilitate the growth of SMEs. There currently exist varied avenues where businesses can take advantage of and thrive even in very difficult circumstances such as COVID-19 pandemic. Due to the restriction of movements, forward thinking institutions have created online market place portals where businesses can source for materials and assistance from well-informed trade agents across the world. It is a misnomer, within the current context, to rely on single sources of supply in the midst of a wide and diversified range of suppliers across the world. Also, creating a website is no longer a luxury for businesses. Branding, along with online payment and

collection of goods will now be a necessity for businesses if they want to experience visibility and continuity. The transformed consumer will now opt for online shopping and delivery services as opposed to the traditional and physical walkins. It will thus be the duty of the MSMEs to e nsure that they are properly prepared for these changes. Additionally, employing Intelligence Automation (IA) and Robotic Process Automation (RPA) would better improve long term and recurring costs. As part of the reliefs planned for the sector, it would help if government/investors/ banks institutionalise digitization in micro and small businesses, introduce and digitize market places to create our own Alibaba and Amazon. The growth of an SME post COVID-19 is reliant on change in trade behaviour, change in delivery model, change in global sourcing and change in their unstructured nature. The consumer is now constantly processing what is and what is not essential at any point in time. The SME that is able to identify and understand the dynamics of this paradigm is the one that would survive and thrive. Exposing yourself to learning opportunities and learning new ways of growing your business

is one sure way of staying ahead of competition and thriving where others are struggling to survive. It is for this reason that many market experts are putting together webinar series targeted specifically at the SME sector in a bid to ensure their survival. There exist ample evidence that the SME sector has been the hardest hit by the COVID-19 pandemic and the onus lies on all of us to ensure their survival and in fact their growth. Webinars such as those organized by Stanbic Bank has the potential of not only ensuring that Ghanaâ&#x20AC;&#x2122;s SME sector sail through this storm but also position themselves strategically to ensure business growth. A crisis is said to reveal the foresight and depth of the thinking of society and if SMEs must grow in a difficult situation, then opportunities such as these must be given priority. The underlying principle for the growth of SMEs is for there to be holistic transformation to match the corresponding change in our socio-economic and environmental situations. It is highly recommended that SMEs take advantage of training opportunities, especially in these times to enable them not only to survive this pandemic but also become thriving businesses regardless.

FRIDAY JULY 24, 2020

The Interview

Subsrcibe thebusiness24online.net/subscribe

Joel Nettey: “Diversity is being invited to the party; inclusion is being asked to dance”.

nyone who is at odds with their own advertising existence or thinks that advertising is at an end must listen to Joel Edmund Nettey, the Senior Vice President of the International Advertising Association (IAA) that becomes its President and World Chairman in October 2020. His perspective on the world and advertising is refreshing, stimulating and hopeful. A conversation about advertising during Corona and what drives him to contribute to the development of diverse communities.

Nettey, you studied at the QMr University of Ghana and ended

up in advertising. Please tell us how that happened.

Hahahahaha. That’s a long story. In High School I wanted to become a Lawyer. Somehow, studying Economics and Psychology in University, I changed that and started thinking about a career in Banking/Finance. Unfortunately for me just when I’d completed the 2nd year of a 3-year honors degree program the lecturers went on strike over disagreements they were having with the government. This strike lasted close to a year and turned a 3year program into a 4year program. So, during that hiatus, I got very involved in student activities which involved organizing all kinds of events and approaching the big brands to sponsor. I got hooked on that whole process of generating ideas and convincing marketing managers to bring their brands on board. I think my loving Psychology also helped me in the whole “understanding consumer behaviour” space. So by the time the strike was over and we went in to complete our final year I was convinced I’d never be able to survive in the straight jacket 9 to 5 life of banking. I was hooked on marketing communications and marketing generally. I think the bug’s still got me. So you see, very much like a lot of other things in my life, my foray into Advertising is really a story of “adversity turning into opportunity”.

fascinates you about QWhat advertising in general? fascinates me the most A What about advertising in general is the power we have as advertising people to influence change, whether it’s in changing bad behaviour or positively reinforcing desirable behaviour or even to educate. Brands, people, nations … all depend on advertising to positively impact their fortunes. Advertising is probably one of the greatest influencers of behaviour.

the commonsensical thing to do, what that does essentially is that it gives those brands that stay the course and greater Share Of Voice in the market … which then means that even for the same amount of spend, they get better impact and thus better returns.

QSecond? … we all know the AIDA model A Also of advertising which essentially suggests that all things being equal consumers go through 4 stages in their decision-making process, namely Awareness, Interest, Desire and then Action.

Joel Nette, Senior Vice President (Incoming President) IAA – International Advertising Association

should young people go Q Why into advertising? opinion, there are very A Infewmyprofessions where you get to influence outcomes the way advertising does. It’s quite fascinating, the opportunities that are now presented in advertising. Especially with everything technology offers – speed, digital, data etc. It’s definitely more unique and inspiring than when I started advertising some 25 years ago.

When I started 25 years ago, there was no school in my part of the world (Ghana, West Africa) that offered a course of study in Advertising. That’s totally changed today. Even outside of formal education the internet offers material and examples that would have been unimaginable 2 decades ago. So in my mind, now more than ever, young people who want to change the world, influence behaviour, support causes etc anywhere in the world can consider a career in advertising and marketing communications generally as a means to achieve those ends. Advertising gives you the platform and opportunity to do that. Purpose-driven brands and campaigns are definitely the winners in this space.

So, if you think about it logically even if customers are not up and buying during the “throes of a recession” they would consciously or unconsciously go through the stages as they interact with the communications/brands they come into contact with during a recession. So, as they come out of the recession they are more likely to have gone through at least the first 2 stages (awareness and interest) for the brands that they have seen and heard during the recession. Coming out of a recession, therefore, such brands are most likely to be in the consumers desire and action stages as opposed to brands who go quiet and would now be creating or re-creating awareness and so on.

QAnd thirdly? also the “softer” side of A There’s the reasoning that informs the

importance of advertising during a recession. For instance, at this moment, in the middle of this pandemic/recession, there is a lot happening. People are at their lowest, and by default, as humans, we remember who was with us at our “darkest hours” … and naturally gravitate towards them. So for brands, it’s important that they not only advertise, but that they support causes that mean a lot to people in these difficult times.

it says even more about the people behind the brand.

you to contribute Q toWhatthemotivates development of diverse communities?

of the things that motivates A One me and has been my guiding

principal for a long time is the poem Desiderata. Among other things, Desiderata says: “As far as possible without surrender, be on good terms with all people”. I have to be honest in saying that in this “diversity” conversation there are groups whose belief systems I can’t relate to. But, that’s fine. Truth is they probably don’t believe in some of the things I believe in either. Which is also fine. That’s the beauty of a diverse world. So, we all need to “be on good terms with all people” and treat the next person the way you would want to be treated.

do you explain that to QHow people? keep telling people that the A Ifingers of the hand are not equal,

and yet we need all of them. So the world is such that you will always meet different people, tall, fat, slim, short, black, white, brown ….., and the beauty of it all is that the world is like a canvas - you need all the colors, images and shades to get the perfect picture, and that is why it’s important for me that we recognize that and give that prominence in everything that we do, whether it’s in our offices, recruiting practices, equity in salaries across genders, casting for commercials where relevant and all those things.

what do you see as the QAnd advantage of diverse groups? a fact that the more diverse A It’s a group is, the more likely you

are to find varied skill sets and experiences that when put together made the whole greater than the sum of its parts. So that’s my motivation, really.

do you see as the QWhat advantages of explicitly

should companies Your love campaign, ever? diverse corporate cultures for QWhy advertise now, in the middle of Q companies? There have been lots of this crisis? A campaigns I’ve fallen in love A It tells people upfront what you Classic marketing communication over the years. Currently believe in, that you are welcoming, A or advertising will tell you that, with though I think the campaign that’s that when they come in there, the brands that are remembered coming out of a recession because they had a consistence presence right through it, are the ones who typically generate the most loyal customers.

But there are also some practical, common-sense reasons why this is so. First, the most common kneejerk reaction of most businesses is to cut back on the “expenditure” in a recession to improve their bottom-line. Although it seems like

reigning on my “love list” is the Nike Colin Kaepernick campaign. “Believe in something. Even if it means sacrificing everything” is a powerful idea or principle that’s timeless. It will last forever, literally. And that Nike had the “character” to support Colin and what he stood for … at a time when they could have lost significant market share in their biggest market over such a sensitive matter, says a lot for Nike itself as a brand. Of course

regardless of their own peculiar strengths and weakness, their nature, they are going to be accepted and given the opportunity to flourish. That at the very outset, gives anybody who is looking for a job the essence of hope, because everybody wants to at least aspire to be the best they can be, and the only way you can

CONTINUED ON PAGE 11

FRIDAY JULY 24, 2020

Subsrcibe thebusiness24online.net/subscribe

Interview/News

CONTINUED FROM PAGE 9

be the best or aspire to be the best you can be is only when you are in an environment that allows you or encourages you to excel. And of course, once they come in and give their best, it’s the organization that ultimately benefits.

you see any other advantages, QDo perhaps those that affect the collective?

(and inclusion) enables A Diversity companies to benefit from

different experiences, cultures and knowledge of different people. Like a harmonious choir you get a much better melody when you can harness all these strengths than to have any part sing alone, regardless of how important that “part” is (or think it is).

are the characteristics QWhat of corporate cultures that are

explicitly designed for inclusion?

an inclusive workplace A Generally, makes all employees feel like they

are part of the “team”. They feel valued and this makes them bring

their A-game to work every day because they feel appreciated and know that their thoughts and opinions, however small, will be heard and at least considered. There’s also equity in access to opportunities for growth, remuneration, promotion and access to roles etc.

there any first signs that Q Are make you hopeful? instance, in our advertising A For world we are gradually seeing

more women advancing to the C-Suite as CEOs and in Creative Leadership etc. But I don’t think it’s happening as fast as it could. Of course there are also real challenges with gender and how much time women are able to dedicate to work in the typical long hours of an agency establishment etc because of the other important roles they play in their families in most cultures. I understand that. But it is important, for me, that they are encouraged and supported to be the absolute best they can be … and must definitely earn equal salaries for equal work done. Within

teams

inclusive

organizations also, one generally finds more collaboration between employees and more of a focus on “the people” by management.

QFinal thoughts? is said that “Diversity is being A Itinvited to the party; inclusion is

being asked to dance”. No one wants to be invited to a party as a spectator. Such a “guest” would rather stay at home. So I just want to encourage everyone – brands, marketeers, politicians - not to make “half-hearted” attempts at diversity. Let’s go the whole hog and push for proper inclusion. That’s when we can truly harness all the benefits. Joel Edmund Nettey is the Senior Vice President of the International Advertising Association (IAA) and becomes its President and World Chairman in October 2020. Joel is a savvy and well-acclaimed Management, Marketing and Marketing Communications expert and the Founder and Chief Executive of The Ninani Group, a group of Marketing Communications Specialist Companies that include Innova

11 DDB Ghana, ReZultz Advertising, Touchpoint Magna Carta (Africa and Ghana’s PR Consultancy of the Year 2019), Interactive Digital and Brand Alert in Ghana as well as Innova Liberia. A thoroughbred marketing communications professional, he has also been Chief Executive of various multinational marketing communications agency affiliates in Ghana including Saatchi & Saatchi and Publicis. In November 2010 the Network Journal USA (www.tnj.com) recognised his sterling qualities when it named Joel as one of the inaugural 20 honorees from across Africa in its “TNJ 40 under Forty Africa” Awards. He holds a Master in Business Administration (Marketing) and a Bachelor of Arts (Honours) in Economics and Psychology degrees from the University of Ghana. Joel and his wife Rachel, are blessed with 3 children – Nichole, Natasha and Nigel. This article is originally published in German Language in HORIZONT SWISS

Kasapreko to receive largest single waiver under 1D1F Kasapreko Company Limited, a leading Ghanaian total beverage producing company, is to receive the Ghana Cedi equivalent of US$ 28.251 million waiver of duties and taxes on import of machinery, equipment and raw materials for the next five years. The waiver, described as the largest, under the Government of Ghana’s flagship programme One District One Factory (1D1F) covers waivers of import duty, import National Health Insurance Levy (NHIL), import GETFund levy, import Value Added Tax (VAT) and EXIM levy. Dr. Mark Assibey-Yeboah, Chairman of the Finance Committee of Parliament and MP for New Juaben South, moved for the Report of the Committee on the waiver to be adopted. It was seconded by Mr. Governs Kwame Agbodza, MP for Adaklu, who rather wondered why the tax waiver was being sought in dollars when the cost of the project was in Ghana Cedis. Presenting the report, Dr. AssibeyYeboah informed the House of the intention of Kasapreko to expand its operations under the 1D1F initiative to meet market demand. “In pursuance of this vision, the company has acquired and renovated the abandoned Paramount Distilleries factory previously owned by GIHOC at Tanoso in Kumasi,” the report said. It added: “The operationalization of the factory will enable the

company to increase its current production capacity, grow sales and satisfy market demand in the Middle Belt and Northern Sector of the country and in the Export Market with high prospects for growth and profitability.” Expected benefits to be derived from the project are that it would facilitate the timely delivery of essential beverage products for local consumption and export, boost the local economy and

provide job opportunities. Kasapreko produces carbonated and non-carbonated soft drinks, water, bitters, whisky, gin, liqour, brandy and wine and also engages in general farming activities. Being a Ghanaian company, the committee noted that most of its profits and resources would be retained in the country to boost the economy, rather than being repatriated if it were a foreign company.

The incentives being approved for the company would also help elevate the company from a Ghanaian giant into a sub-regional giant and leader in the industry. Mr. Kwaku Agyemang Kwarteng, Deputy Finance Minister, winding up, explained that the amount of the waiver was in dollars because it would involve import items, and also for simplicity sake. GNA

FRIDAY JULY 24, 2020

News

Subsrcibe thebusiness24online.net/subscribe

Parliament passes Accident Investigation and Prevention Bureau Bill In 2019, a little over GH¢521m was realised in airport taxes. However, given the negative impact of the COVID-19 pandemic on both domestic and international passenger throughput for this year, receipts are expected to fall to GH¢314.1m. Nevertheless, with the projected rebound of the industry to preCOVID-19 levels in 2021/2022, the bureau is expected to be well-resourced to carry out its mandate. 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. The setting up of the bureau is also in readiness for Ghana’s upcoming International Civil Aviation Organisation (ICAO) audit in 2021.

BY DOMINICK ANDOH

Parliament on Thursday approved the Accident Investigation and Prevention Bureau Bill for the establishment of a dedicated bureau mandated to investigate all aviation incidents and accidents in the country. The bill is now expected to receive presidential assent to become law. This is a giant step in turning what is currently an office that resides in the Aviation Ministry into an autonomous accident investigative body that is well-resourced to carry out its mandate, devoid of undue influence by the industry regulator, Ghana Civil Aviation Authority (GCAA), and the sector ministry. The main funding source for the bureau is 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.

Free SHS has saved parents GH¢2.2bn—Ofori-Atta BY BENSON AFFUL

Finance Minister Ken Ofori-Atta has revealed to Parliament that the government’s most ambitious social intervention policy, Free Senior High School (SHS), has cost the state GH¢3.2bn in the first 3 years of its implementation, benefitting some 1.2m students across the country. This, he said, has translated into about GH¢2.2bn in savings for the parents and families of the beneficiary students. “That’s money in the pocket of Ghanaians and an investment by the state for every family in this country,” Mr. Ofori-Atta said on Thursday as he presented the midyear budget review statement to legislators. “So far, expenses on the Free SHS programme have remained on track,” he added. The first year of implementation of the policy saw the government earmark about GH¢400m to take care of over 300,000 students who were placed in Senior High Schools (SHS) across the country. With the full roll-out of the policy

completed, total enrolment in SHS currently stands at 1.2m students, the highest ever in the country’s history. In 2019, out of the GH¢12.87bn allocated to the Ministry of Education to fund its programmes and activities, GH¢1.68bn was earmarked for the Free SHS programme. Two years ago, in the second year of the implementation of the policy, the government earmarked GH¢679.6m to be spent on the programme. Government has said Free SHS has provided unparalleled access to secondary education in Ghana, raising the total enrolment by 50 percent in three years.

FRIDAY JULY 24, 2020

Feature

Subsrcibe thebusiness24online.net/subscribe

The true price of pesticides is unaffordable BY AYLA LIEBETRAU

n the last two decades, the European Union has banned many active pesticide ingredients because of their damaging health and environmental effects. With leading global agrochemical firms now seeking new markets to conquer, developing countries urgently need strict controls of their own A mounting body of evidence suggests that industrial agriculture is failing the planet and its people. In particular, harmful chemical pesticides increasingly threaten the environment and public health. Along with synthetic fertilizer, pesticides fuel the industrial agriculture system – and their use is steadily increasing in almost all regions of the world. The Heinrich Böll Foundation’s latest Insect Atlas shows that annual global pesticide use has risen from about three million tons at the start of the millennium to more than four million tons today. Global pesticide sales totaled €56.5 billion ($65.4 billion) in 2018 and could climb as high as €82 billion by 2023. Although some national regulators are increasingly concerned about the health risks arising from pesticide residues in food, governments everywhere underestimate these products’ effect on non-target organisms. Pesticides can persist in the environment for decades and threaten entire ecosystems. Their excessive use and misuse results in contamination of soil and water resources, which reduces biodiversity, destroys beneficial insect populations, and makes our food less safe. Declining insect populations have become a hot topic in Europe since a study in 2017 revealed that, in some parts of Germany, more than 75% of flying insects had disappeared over the previous three decades. Soon afterward, researchers at the University of Sydney estimated that 41% of all insect species worldwide were declining, and one-third were threatened with extinction. These studies offer a first glimpse of a worrying environmental trend. Long-term scientific data on insect populations is rare, and it is virtually non-existent in regions where the pace of agricultural industrialization is accelerating, such as Asia, Africa, and Latin America. It is precisely these regions that are particularly vulnerable to dangerous pesticides.1 In the last two decades, following

public protests and campaigns, the European Union has banned many harmful pesticide active ingredients. The overall trend in pesticide use in Europe, however, is not uniform: Some European countries, such as Denmark, use pesticides less, while others, such as Poland, use them more. Still, overall, tougher regulations and reduced demand have made the European market less profitable for leading global pesticide producers. The four largest producers – BASF and Bayer in Germany, the Swissbased but Chinese-owned firm Syngenta, and Corteva Agriscience, formerly the agriculture division of DowDuPont – together account for two-thirds of the global pesticides market, and are seeking new revenue sources. They are targeting developing countries, where agriculture sectors are under pressure to feed growing populations while adapting to the effects of climate change. Here, the major producers benefit from fact that the relatively strict pesticide standards enforced by European governments are used only within their borders. They have not translated into restrictions on the manufacture and export of harmful pesticides from the EU to other countries. As long as the ingredients are approved in one OECD country, EU companies may produce and export pesticides containing them – regardless of whether they are scientifically proven to be harmful to human health or the

environment. In Kenya, for example, onethird of registered active pesticide ingredients are not approved in Europe because of their negative health or environmental impacts. According to the Pesticide Properties Database maintained by the University of Hertfordshire as part of the EU-funded FOOTPRINT project, 77% of pesticide products in Kenya are classified as either carcinogenic, mutagenic, endocrine-disrupting, or neurotoxic, or have clear effects on reproduction. In addition, 32% of available pesticides in the country are toxic to bees, and more than half are toxic to fish. Europe is the second largest exporter of pesticides to Kenya, behind China, and nearly 60% of European products registered in the country are made by BASF, Bayer, and Syngenta. A Public Eye investigation revealed that more than a third of the pesticide sales made by BASF, Bayer, Corteva Agriscience, FMC, and Syngenta contain chemicals that are highly toxic to health or the environment. Unfortunately, pesticide regulation is weak in many countries of the Global South. And because these products are increasingly available, local farmers tend to use them without considering safer alternatives. Even if pesticides could be used safely, farmers, operators, and traders often lack the literacy skills to follow the guidelines and labeling, especially if these are not

printed in local dialects. Such obstacles, along with the high cost of personal protective equipment, can render “safe use” instructions useless. In addition, many developing countries’ poor laboratory infrastructure risks undermining consumer food safety further. Through a petition in the Kenyan parliament, environmental and health organizations have demanded stricter pesticide controls and the withdrawal of active ingredients that are proven to be harmful. Industry actors label these groups’ efforts anti-science, claiming that pesticides are indispensable to combating global hunger – a narrative as catchy as it is wrong. Facile arguments that disregard evidence-based concerns about pesticides will simply enable leading producers to continue profiting from business as usual. Instead, we need a serious discussion about alternative approaches to growing safe food in a sustainable agriculture system that makes public health and environmental protection the highest priority. As EU regulations and the Kenyan petition have shown, meaningful change will require concerted political leadership. Everyone’s rights to safe food and a healthy environment are at stake. Layla Liebetrau is the Project Lead of the Route to Food Initiative, supported by the Heinrich Böll Foundation, in Nairobi. Copyright: www.project-syndicate.org

FRIDAY JULY 24, 2020

News

Subsrcibe thebusiness24online.net/subscribe

The COVID-19 Gender Gap BY KRISTALINA GEORGIEVA, STEFANIA FABRIZIO, CHENG HOON LIM, AND MARINA M. TAVARES

he COVID-19 pandemic threatens to roll back gains in women’s economic opportunities, widening gender gaps that persist despite 30 years of progress. Well-designed policies to foster recovery can mitigate the negative effects of the crisis on women and prevent further setbacks for gender equality. What is good for women is ultimately good for addressing income inequality, economic growth, and resilience. Why has COVID-19 had disproportionate effects on women and their economic status? There are several reasons. First, women are more likely than men to work in social sectors — such as services industries, retail, tourism, and hospitality — that require face-to-face interactions. These sectors are hit hardest by social distancing and mitigation measures. In the United States, unemployment among women was two percentage points higher than men between April-June 2020. Because of the nature of their jobs, teleworking is not an option for many women. In the United States, about 54 percent of women working in social sectors cannot telework. In Brazil, it is 67 percent. In low-income countries, at most only about 12 percent of the population is able to work remotely Second, women are more likely than men to be employed in the informal sector in low-income countries. Informal employment – often compensated in cash with no official oversight – leaves women with lower pay, no protection of labor laws, and no benefits such as pensions or health insurance. The livelihoods of informal workers have been greatly affected by the COVID-19 crisis. In Colombia, women’s poverty has increased by 3.3 percent because of the shutdown in economic activities. The UN estimates that the pandemic will increase the number of people living in poverty in Latin America and the Caribbean by 15.9 million, bringing the total number of people living in poverty to 214 million, many of them women and girls. Third, women tend to do more unpaid household work than men, about 2.7 hours per day more to be exact. They bear the brunt of family care responsibilities resulting from shutdown measures such as school closures and precautions for vulnerable

elderly parents. After shutdown measures have been lifted, women are slower to return to full employment. In Canada, the May job report shows that women’s employment increased by 1.1 percent compared with 2.4 percent for men, as childcare issues persist. Furthermore, among parents with at least one child under the age of 6, men were roughly three times more likely to have returned to work than women. Fourth, pandemics put women at greater risk of losing human capital. In many developing countries, young girls are forced to drop out of school and work to supplement household income. According to the Malala Fund report, the share of girls not attending school nearly tripled in Liberia after the Ebola crisis, and girls were 25 percent less likely than boys to reenroll in Guinea. In India, since the COVID-19 lockdown went into effect, leading matrimony websites have reported 30 percent surges in new registrations as families arrange marriages to secure their daughters’ futures. Without education, these girls suffer a permanent loss of human capital, sacrificing productivity growth and perpetuating the cycle of poverty among women. It is crucial that policymakers adopt measures to limit the scarring effects of the pandemic on women. This could entail a focus on extending income support to the vulnerable, preserving employment linkages, providing incentives to balance work and family care responsibilities, improving access to health care and family planning, and expanding support for small businesses and the self-employed. Elimination of legal barriers against women’s economic empowerment is also a priority. Some countries have moved quickly to adopt some of these policies. Austria, Italy, Portugal, and Slovenia have introduced a statutory right to (partially) paid leave for parents with children below a certain age, and France has expanded sick leave to parents impacted by school closures if no alternative care or work arrangements can be found. Latin American women leaders have established the “Coalition of Action for the Economic Empowerment of Women” as part of a wider wholeof-government effort to increase women’s participation in the postpandemic economic recovery. In Togo, 65 percent of participants in a new mobile cashtransfer program are women. The program enables informal workers to receive grants of 30 percent of

minimum wage. Over the longer term, policies can be designed to tackle gender inequality by creating conditions and incentives for women to work. As discussed in a recent blog, particularly effective are gender-responsive fiscal policies, such as investing

in education and infrastructure, subsidizing childcare, and offering parental leave. These policies are not only crucial to lift constraints on women’s economic empowerment, they are necessary to promote an inclusive postCOVID-19 recovery. (IMF.org)

FRIDAY JULY 24, 2020

Market Update

Subsrcibe thebusiness24online.net/subscribe

FRIDAY JULY 24, 2020