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BUSINESS24.COM.GH
NO. B24 / 228 | NEWS FOR BUSINESS LEADERS
Finance Minister vows to tame deficit By Business24 Reporters
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FRIDAY MONDAY JULY MAY 30,3,2021 2021
Stanchart pays 23% of total income to ordinary shareholders shareholders of GH¢234.4m, representing 23 percent of the bank’s total income in 2020. This follows the bank’s sterling performance that saw its revenue grow by 20
inance Minister Ken OforiAtta said on Thursday that the government is on course to lower the budget deficit to 9.5 percent of GDP despite undershooting its revenue target in the first half of the year. At GH¢28.3bn, the government’s total revenue collected from January to June fell short of its goal by GH¢4.1bn, equivalent to about
Cont’d on page 3
Lands Minister promises jobs in mining areas
Cont’d on page 2
By Eugene Davis
World Bank to support reform agenda in SOEs By Eugene Davis
ugendavis@gmail.com
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he Country Director of the World Bank, Pierre Frank Laporte, has said the bank is in talks with stakeholders to extend a Programme-for-Results (PforR) facility to Ghana aimed at supporting the reform agenda in public enterprises. The programme will be submitted to the bank’s board for approval next year, he Cont’d on page 3
ugendavis@gmail.com
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he Minister for Lands and Natural Resources, Samuel Abu Jinapor, says the introduction of the National Alternative Employment and Livelihood Programme for illegal small-scale miners affected by the activities of Operation Halt II will bring Cont’d on page 5
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Cont’d on page 2
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Editorial / News
FRIDAY JULY 30, 2021
Editorial
Govt’s structured approach to job creation plausible
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he issue of youth unemployment remains an economic albatross on the necks of successive governments, despite the rewarding interventions to bolster the private sector to provide the needed jobs. The situation has been worsened by the scourge of the virus which has seen quite a number of people who were in gainful employment losing their sources of livelihood. Presenting the mid-year budget in Parliament yesterday, Finance Minister Ken OforiAtta said that government was deliberately intervening to avoid a jobless economic growth and recovery, which is good news to the youth, considering the period we find ourselves in.
The private sector is still recognized as the anchor for sustainable job-making for which reason the government’s recovery programme and transformation agenda is easing the constraints of the private sector to enable them expand and provide jobs for our youth, the minister said. “The intention of building an entrepreneurial nation is already known. We aim to empower our youth to be at ease and venture into business. The clean-up of the financial sector and the invigoration of the entrepreneurial eco-system is expected to help remove the binding constraints of financing and market linkage for our daring youth,” he added. Prominent among the
deadlocks to employment creation is the persistent skills gap among our youth with a recent survey indicating that about 50 percent of local employers report misalignment of or inadequacy of skills in the market. There must be a conscious attempt to link academia to the needs of job market in line with our quest to establish a strong value system for entrepreneurship to flourish. Skilled labour is the bedrock of every economy hence the need to prepare the right blend of technical and vocational expertise to feed the productive sectors of the economy, and to sustain the national industrialization agenda.
Finance Minister vows to tame deficit Continued from cover
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1 percent of GDP. It responded by keeping expenditure below the limit set for the period, with actual spending coming in GH¢4.5bn lower than projected, at GH¢50.6bn, equivalent to 11.7 percent of GDP. This kept the budget deficit for the first six months of the year on target, at GH¢22.7bn or 5.2 percent of GDP. Insisting during his mid-year budget review speech that the government will stay the course of fiscal consolidation despite the underperforming revenues, the Finance Minister told Parliament: “This Mid-Year Fiscal Policy Review that I am presenting does not come with a supplementary budget, and our revised fiscal framework for 2021 is kept within the fiscal target of 9.5 percent of GDP.” Fiscal consolidation became imperative after the budget deficit soared to 11.7 percent of GDP last year, reflecting the acute financial effects of the coronavirus crisis, and the public debt rose sharply to 76.1 percent of GDP. “We will continue to pursue our fiscal consolidation agenda to ensure that we remain within the appropriation given by this House,” Mr. Ofori-Atta said. “We remain fully committed to
achieving the fiscal deficit target for the year in order not to derail from the objective of returning to the Fiscal Responsibility Act (FRA) threshold of 5 percent of GDP for the fiscal deficit and a positive primary balance by 2024.” In his speech, Mr. Ofori-Atta also announced a “One Million Jobs Initiative” to expand youth employment through initiatives including a “Youth banc” that will provide financing to youth-led start-up businesses.
“We are also feverishly working on a scheme that enables the private sector to train new recruits or entrants at a subsidised rate by government,” he added. He also promised more investments in road infrastructure, with his budget documents showing extra capital spending of GH¢1.5bn was made in the first half of the year, on top of the amount projected for the period of GH¢5.4bn.
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World Bank to support reform agenda in SOEs Continued from cover said in Accra on Tuesday at the performance contract signing ceremony for managers of public enterprises. “This programme, among many other important PFM issues, aims to support the SOE sector. We are exploring different activities to be undertaken and expect key results in areas such as SOE performance evaluation reports, State-Owned Reports, and control on net transfers to SOEs.” He also announced that the bank is preparing another Programme-for-Results facility in the energy sector, whose key focus areas include improvement of the Electricity Company of Ghana’s performance and corporate governance. “Given the high contribution of the energy sector to the Ghanaian economy, this is expected to
serve as a catalyst for improving financial conditions in the SOEs,” he stated. According to Mr. Laporte, the World Bank, under the Economic Management Strengthening Project (GEMS), allocated US$5.25m to improve the governance of SOEs, through which the establishment of the State Interests and Governance Authority (SIGA) was supported. The project also supported the consolidation of the state’s ownership role through an equity study. Turning to the country’s fiscal situation, he said “while Ghana has been outstanding in containing the pandemic and supporting the economy, and [while] an economic recovery is underway, there are fiscal challenges ahead of us.” He added he was pleased to see in the 2021 budget the government’s commitment to
Mr. Stephen Asamoah-Boateng, Director-General of the State Interests and Governance Authority (SIGA).
gradual medium-term fiscal adjustment that will see a decline in public debt starting in 2024. Under such circumstances, he said the performance of SOEs needed to be enhanced to stop the
need for the government’s regular interventions and financial support, and in turn protect the government’s ownership interests.
Stanchart pays 23% of total income to ordinary shareholders Continued from cover percent last year to GH¢1.02bn from GH¢853m in 2019. Stanchart’s operating cost dropped by 12 percent yearon-year to GH¢288.1m from GH¢328.9m, whilst its operating profit increased by 59 percent to GH¢675.4m from GH¢424.2m.
Earnings per share for the period also increased to GH¢3.54 from GH¢2.08. The bank’s board chairman, Dr. Emmanuel Kumah, commenting on the results, said: “We remain strong and profitable. Our milestone anniversary this year presents us with a unique opportunity to build towards a
sustainable future as we continue to transform our business to create increased shareholder value driven by our unique purpose, while fulfilling our brand promise ‘Here for Good.’” He added that the bank remained focused on offering unwavering support to clients through the provision of
differentiated experiences and helping them navigate the uncertainties of the current period. Chief Executive Mansa Nettey said: “Despite the extraordinary challenges of the year in review, we delivered a strong financial outcome. Our refreshed priorities coupled with our purpose will help us scale up and deliver on our business goals in 2021.” According to the bank, investments into its digital capabilities paid off as clients took advantage of the enhanced payment proposition, including its flagship SC Mobile Banking app. “This led to a smooth transition into our new ways of banking for our clients. In 2021, we will continue to strengthen our digital transformation and innovation capabilities to offer clients more convenience for their banking needs,” Chief Financial Officer Kweku Nimfah-Essuman said.
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Lands Minister promises jobs in mining areas Continued from cover a big relief to jobless youth in mining areas. Mr. Jinapor was speaking in Parliament yesterday after the Finance Minister, Ken Ofori-Atta, presented his mid-year budget review statement to lawmakers, in which he revealed a government programme to create 1m jobs for the youth. The programme, according to the Finance Minister, will be anchored on six main interventions, namely, National Land Reclamation and Reafforestation; Agriculture and Agro-processing; Apprenticeship, Skills Training and Entrepreneurship; Responsible, Viable and Sustainable Community Mining; Mine Support Services; and Community Enhancement Projects. Mr. Jinapor said the move will create thousands of jobs for illegal miners across the country. “This is going to create some
800,000 jobs in the five mining enclaves of our country—Ashanti, Eastern, Central, Western North and other parts of the country— where illegal miners have actually lost their jobs.”
Contradicting Mr. Jinapor, the Minority Spokesperson on Mines and Energy, John Jinapor, said the Finance Minister’s mid-year review statement will bring more hardships to Ghanaians.
“This budget will bring hardships and suffering. Already, Ghanaians have been burdened with taxes, and we the Minority will advise the Minister to withdraw this budget.”
Gov’t is committed to CRM policy—NPA boss By Henry Martinson
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hief Executive Officer of the National Petroleum Authority (NPA), Dr. Mustapha Abdul-Hamid, has reiterated government’s commitment to the implementation of the Cylinder Recirculation Model (CRM). The CRM, a new policy by government for the marketing and distribution of Liquefied Petroleum Gas (LPG) in the country, saw stiff opposition from the Ghana Liquefied Petroleum Gas Operators Association when it was piloted four years ago.
The association had expressed the fear that there would be job losses if the CRM became fully operational. However, speaking to the LPG Marketers Association (LPGMC) in Accra on Wednesday, the CEO of NPA said, “It is not in our interest that four years after the commitment to implement a cylinder recirculation model, it has still not been done.” He added: “We at the NPA are determined to make this policy a reality. In the entire sub-region, it is only Ghana and Nigeria that still operate LPG filling stations, and we ought to move with the times.”
The meeting was part of Dr. Abdul-Hamid’s stakeholder consultations in the downstream petroleum sector to understand their challenges and how those challenges can be surmounted. Gabriel Kumi, Vice President of the LPGMC, said while his outfit was not against the implementation of CRM, it was opposed to how the NPA had handled its implementation all these years. According to him, the NPA had sought to implement the policy as if it was implementing it in a “virgin territory”. “The NPA was proceeding as
if there was no LPG market in Ghana prior to the floatation of the idea of a CRM. Some of us have been in the LPG business for the last 20 to 30 years, and so when the NPA behaves as if it is implementing a policy from scratch, it is worrying.” Mr. Kumi also called on government to scrap all taxes on LPG to make it affordable to many. He appealed for government’s intervention to partially lift the ban on the opening of new LPG stations, since many stations were under construction before the ban was imposed following the Atomic Junction gas explosion. Responding to Mr. Kumi, Dr. Abdul-Hamid thanked the LPGMC for their renewed commitment to the CRM policy. He also assured them that changes were going to be made within the NPA to give members of the association the confidence to cooperate with the authority to ensure a successful implementation of the CRM. Dr. Abdul-Hamid added that he will consult the Energy Minister for a partial lifting of the ban on the establishment of LPG stations, in order to allow those who had invested in them to reap the benefits of their investment.
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Standard Chartered reduces barriers to employment with market-leading apprenticeship scheme
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tandard Chartered has launched its first frontoffice Financial Markets Apprenticeship Programme promoting social mobility by taking a revolutionary approach to entry requirements, with the first cohort joining the bank this week. The new apprenticeship scheme sees the removal of an academic qualification prerequisite, and instead identifies candidates’ potential through assessment materials developed specifically for the role, enabling a holistic view of candidates’ ability. The bespoke three-year programme combines academic qualifications with on the job learning, working alongside Financial Markets professionals across sales, trading, financing and capital markets. Recruitment for the apprenticeship targeted school leavers with a focus on attracting an ambitious talent pool, engaging with disadvantaged and disengaged communities, promoting gender balance, socioeconomic inclusion and ethnic diversity. Henrik Raber, Global Head of Credit Markets at Standard Chartered said the introduction and approach of the bank’s Financial Markets Apprenticeship
Scheme has proven there is high-potential talent out there amongst individuals who would normally not have access to such opportunities. “To be truly diverse and inclusive, organisations need to re-think their approach to talent management and resourcing. We recognise that passion and ability cannot always be measured by academic performance alone. We are proud to lead the charge on a path that will hopefully provide
greater opportunities to all.” To support the apprentices’ transition into their new roles, a start-up payment is provided to assist with work related expenses such as travel costs and business attire incurred prior to the first salary payment, combined with an onboarding programme which looks to develop professionalism and confidence in the workplace. The six apprentices now begin stage one of the programme which will provide a foundation of
tailored technical and professional skills training, working towards completion of professional qualifications obtained from the Chartered Institute of Securities and Investments (CISI). This will be followed by the Level 6 Financial Services Professional Apprenticeship, and upon successful completion apprentices will be offered a front office role within Standard Chartered’s Financial Markets business.
More than 200,000 MSMEs benefiting under CAP Buss scheme
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overnment, through the Ghana Enterprises Agency (GEA), formerly National Board for Small Scale Industries (NBSSI), has disbursed a total amount of GH¢520million to 299,490 Micro, Small and Medium Enterprises (MSMEs) between May 2020 and June 2021. Out of the 299,490 SMEs who
benefited under the GH¢600 million Coronavirus Alleviation Programme Business Support Scheme (CAP Buss), 69 per cent are women-owned businesses. Ken Ofori-Atta, Minister for Finance, said this when he presented the mid-year fiscal policy review of the budget statement and economic policy
of the government to Parliament on Thursday. He said the intervention unlocked access to finance mainly to women, who would not have been able to access funds to support and build their businesses. The minister said technical support was also provided
in the form of training in entrepreneurship and financial management to 15,748 beneficiaries across Ghana, with about 67 percent being females. “Over 740,000 jobs have been protected and a database of 914,000 MSMEs has been created to inform policy,” he added. The minister said support was also given to specific sectors such as the creative arts, media and the private education sector to enable them continue to offer key services during the peak of the pandemic. He said as at end of June 2021, a total of GH¢52,293,093.00 had been disbursed to 29,698 beneficiaries within the creative arts industry. Additionally, 5,410 private schools, universities, and associations within the educational sector received a total of GH¢41,211,577. GNA
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GSE posts impressive results despite Covid-19
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he Ghana Stock Exchange (GSE) has posted impressive results despite the devastating effects of COVID-19 in 2020. The exchange showed a solid financial performance in the year under review, within the difficulties of the world’s capital markets amid the COVID-19 pandemic that disrupted many economies around the world. The net profit after tax of the exchange in 2020 was GHc23.46 million compared to GHc 8.43 million in 2019, the highest in the history of the exchange. The Chairman of the GSE Council, Mr. Anselm Ray Sowah said the year 2020 was unusual by all standards as the Coronavirus pandemic (COVID-19) ravaged the world and posed some of the biggest organisational challenges in history. The GSE Composite Index closed the year at 1,941.59 points, which represented a decline of 13.98%, slightly higher than the -12.25% recorded at the end of 2019. He said the market capitalisation for all listed securities ended the year with GHc54.37 billion compared with GHc56.79 billion
recorded in 2019 representing a dip of 4.25%. However, the exchange had a record setting year across its markets despite the challenging times. “The equities market recorded its second highest annual volume traded in its 30-year history, with higher liquidity during the last quarter. A record 695,396,188 shares valued at GHc575,269,873.22 were traded,” he added. The year 2020 marked 30 years of operations of the Ghana Stock Exchange, which commenced trading on 12th November 1990. The meeting highlighted some
of the successes and challenges of GSE during its 30 years of existence. From a modest beginning, the GSE has set up three markets namely the Main Market, Ghana Alternative Market (GAX) for SMEs and Ghana Fixed Income Market (GFIM) through which companies have raised over GHS 18 billion in long-term capital. On the equities markets, GHS5.5 billion worth of shares have traded and the average annual return to investors in the last 30 years is 25%. The GSE was adjudged best the performing Exchange in Africa in 2008
and 2018 respectively by Africa Investor (Ai) and continues to shine on the continent. In his remarks, The Managing Director of the GSE, Mr. Ekow Afedzie, said the exchange performed beyond expectation amid challenges occasioned by the COVID-19 pandemic which slowed down economic activities globally, collapsed businesses and brought the lives of people to a standstill. “Nonetheless, the Ghana Fixed Income Market (GIFM) smashed the 100 billion ceiling for trade volumes and the Equity Market closing the year on a high note despite the difficult conditions,” he said. The Exchange has developed a 3-year Strategic Plan to transform from a frontier market to an emerging market; demutualized entity operating at optimal capacity with an innovative and competitive orientation; and become the preferred platform for financing and investment for both public and private sectors. All these are aimed at creating a vibrant Exchange to support its mission of providing an efficient securities market in support of national economic development.
Rotary Club of Tema-Community 25 distributes menstrual health and hygiene products to schools All of this has far-reaching in countries, where clean water By Baptista S. Gebu – Ghana RAGMHH
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he Rotary Club of Tema Community 25 recently embarked on a sustinable Menstrual Health and Hyiene (MHH) project. The project is to enable the club provide education to young girls from six(6) selected schools within the Kpone Katamanso enclave in the Greater Accra Region. The beneficial schools include Ebenezer Hills “1” and “2” basic schools, Gbetsile KKMA No. 1 and 2 Primary as well as Sebrepor Presby A and B basic schools. The project, organised by the Service Project Committee of the club saw members distribute 840 boxes of disposable mentrual pads. Some 90 selected girls in addition were introduced to the use of the sustianble rewashable pads. As part of the education provided to the schools on what constitute proper hygiene and menstral health, the girls were exposed to the right use of the
sustianble reusable pads in a live demonstration session. There was an opportunity for experience sharing where 10 selected girls from the beneficial schools shared their experiences, perceptions, myths and knowledge on menstruation. The adolescent health nurse of the disctrict who was also present together with the Director of Service Projects provided handson relevant eductaion to the girls on the subject matter. Menstrual hygiene management (MHM) or menstrual health and hygiene (MHH) refers to access to menstrual hygiene products to absorb or collect the flow of blood during menstruation, privacy to change the materials, and access to facilities to dispose of used menstrual management materials. It can also include the "broader systemic factors that link menstruation with health, wellbeing, gender equality, education, equity, empowerment, and rights". Menstrual hygiene management can be particularly challenging for girls and women
and toilet facilities are often inadequate. Menstrual waste is largely ignored in schools, despite it being a significant problem. Menstruation can be a barrier to education for many girls, as a lack of effective sanitary products restricts girls' involvement in educational and social activities. Menstruation is a natural fact of life and a monthly occurrence for the 1.8 billion girls, women, transgender men and non-binary persons of reproductive age. Yet millions of menstruators across the world are denied the right to manage their monthly menstrual cycle in a dignified, healthy way. Gender inequality, discriminatory social norms, cultural taboos, poverty and lack of basic services often cause girls’ and women’s menstrual health and hygiene needs to go unmet. Adolescent girls may face stigma, harassment and social exclusion during menstruation. Transgender men and non-binary persons who menstruate often face discrimination due to their gender identity that prevents them from accessing the materials and facilities that they need.
negative impacts on the lives of those who menstruate: restricting their mobility, freedom and choices; affecting attendance and participation in school and community life; compromising their safety; and causing stress and anxiety. The challenges are particularly acute for girls and women in humanitarian crises. The onset of menstruation coincides with new opportunities – and vulnerabilities – that arise during adolescence. Menstrual health and hygiene interventions can be an entry point for other gender-transformative programmes during this period, like sexual and reproductive health education and life skills development. By strengthening self-efficacy and negotiating ability, MHH programmes can help girls build the skills to overcome obstacles to their health, freedom and development, such as gender-based violence, child marriage and school dropout. Investments in adolescent girls’ well-being yield triple dividends: for those girls, for the women they will become, and for the next generation
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FBNBank tops bank’s Positive Media Sentiments Index ratings: Q1&Q2 – IBNA Research By Messan Mawugbe (PhD)
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anks are custodians of costumers’ assets and wealth. It acts as trusted intermediaries. Banks are symbols of national security, public trust, the nerve of national economies. A bank’s vault goes beyond the literally space of safe-keeping but a metaphorical representation of trustworthiness, credibility, and care which are linked to a bank’s brand and reputation. This is to say, banks as custodian of costumers’ wealth, is highly influence by the customers aggregated conversation, behaviors and sentiments towards a banking corporate brand. Banking corporates public sentiments is simply the summary of positive, negative and neutral tones of conversation around the banking brand. A tone of news narrative as projected through the media has the potential to influence a bank’s existence especially if unchecked, negative tones could dent an image of a bank’s brand in a competitive banking sector. Naturally, banks are supposed to pay extreme attention to their brand narrative tones in the media, but this important
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strategic brand communication values seems to be eluding banks in Ghana. Corporate communications departments of the banking sector are encouraged to adopt consistent scientific mechanisms for measuring brand sentiments attributes in the context of attitude, thoughts, judgements, opinions, emotions, and affections. Failure to employ brand sentiments strategic efforts creates small pictures in the mind of the consumer and subsequently leads to long-term invisible brandinjuries in the minds of banking
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sector consumers. The importance of brand sentiments contributions to corporate returns on investment led IBNA to embark on the Ghana Banking Media Sentiments Index Ratings (GBMSI-R), 2021. This index is a contextual tone measurement of the 23 Ghana banks news narratives within the degrees of positive, negative and neutral (uncertainty) tones. Results from the analysis of top 10 banks media narrative sentiments among the 23 banks in Ghana for the first quarter (Q1) and second quarter (Q2), 2021 are
as follows: Among the top 10 banks, FBNBank recorded the highest positive brand tones of 845 (24%) to lead in the Ghana Banking Media Sentiments Index ratings for the period of study. GCB bank took the second position with 673 (19%), with ECOBANK also recording the third position with 446 (13%). The fourth to the tenth positions are as follows: ADB bank and ACCESS bank shared 327 (9%) and 302 (9%) respectively. ABSA bank and STANCHART bank also pulled 257 (7%) and 231 (7%) respectively. STANBIC bank 218 (6%), FIDELITY bank 211 (5%) and FNB bank 37 (1%). In terms of negative brand tones ratings, GCB bank recorded the highest negative tones of 88 (59%). It must however be emphasized that the negative GCB brand tones were not linked to brand performances nor in the context of consumer service relations but a sad unpredictable event of robbery. FBNBANK recorded the second negative tones of 39 (27%) with STANBIC bank on the third position with 21 (14%). ADB, ACCESS, ABSA, ECOBANK, FNB, FIDELITY, and STANCHART banks recorded no negative brand tones ratings.
A record in the industry: The PUE of Huawei Smart Modular Data Center solution reaches 1.111 Smart Modular Data Center
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loud Computing & Big Data Research Institute— a core department of the China Academy of Information and Communications Technology (CAICT) — and The Green Grid China (TGGC) conducted onsite test on Huawei Smart Modular Data Center, achieving a significant milestone. The annual average Power Usage Effectiveness (PUE) was recorded at 1.111@Beijing, the lowest level ever recorded in the industry. The PUE of 1.111 sets a new benchmark for the industry, with the previous record standing at 1.245, recorded in November 2018. The certification was conducted by Cloud Computing & Big Data Research Institute. The onsite test simulated outdoor environments in Enthalpy Different Laboratory with different temperature, ranging from –5°C to 35°C, in order to test PUE under different climates and loads. The PUE
figures are calculated based on climate distribution coefficients of different regions, to arrive at the annual average PUE in any given region. As an important indicator for measuring the energy efficiency of the data center, the PUE fully reflects the energy efficiency. A lower PUE value indicates higher energy efficiency of the data center. Currently, the industry average PUE is approximately 1.5. This means that IT equipment consumes 67% of a data center's total power supply, with the remaining 33% consumed by other systems, such as cooling. The annual average PUE of 1.111 represents a 25% reduction in total power consumption compared to a PUE of 1.5. “China has become the world's second-largest market for data centers and the fastest-growing market in the world. High power consumption will be an important factor restricting the
development of data centers. To guide the development of the data center industry towards green and energy-saving, TGGC and CAICT organized industry experts to draft and update the PUE Test Specifications for Smart Modular DC. The new PUE test record of Huawei Smart Modular Data Center is of great significance to promote the green and energysaving development of the data center industry and reduce carbon emissions”, explained Zhang Song, Deputy Chairman of TGGC. Chen Dongfeng, General Manager of Huawei Smart Modular Data Center, said: “Huawei
has led the market for seven consecutive years. High-intensity investment in new technologies is the key to Huawei's leadership position. In the new-generation Smart Modular DC solution, Huawei introduces free cooling technology, which can fully utilise natural cooling sources in cold environments and reduce power consumption of the cooling system. In addition, Huawei iCooling AI self optimisation can automatically adjusts the cooling system to provide more energysaving data center solutions.” Data center energy saving and emission reduction is not only an industry trend, but also a social responsibility of enterprises. As we further advance our goal of carbon neutrality, Huawei will continue to innovate and use the latest technologies to promote the development of the data center industry in a green, secure, and sustainable direction, and actively contribute to the goal of carbon neutrality.
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COVID-19 has exerted seriously on the economy - Finance Minister
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inance Minister Ken OforiAtta says the COVID-19 pandemic has exerted seriously on the economy, creating job losses and exacerbating the unemployment problem, particularly among the youth. “As such, government is ready with a comprehensive programme to tackle this intractable problem. The goal is to create employment opportunities for a million of our young people over the next two and a half years,” the Minister assured. Mr Ofori-Atta reading the mid-year budget review said the government has competently managed the COVID-19 situation, and made Ghana’s economy outperformed its peers, and recovering faster. “After recording negative growth in the second and third quarters of 2020, the economy rebounded strongly in the last quarter of the year, continuing well into the first quarter of 2021,” Mr Ofori-Atta added. He said reports from the Ghana Statistical Service indicate that the overall GDP growth for the first quarter of 2021 was 3.1 percent
and “the growth was even better excluding oil at 4.6 percent. “The Bank of Ghana Composite Index of Economic Activity (CIEA) attests to the strong growth recovery, with the index growing at 33.1 percent at the end of May 2021 compared to a contraction of 10.23 percent at the end of May 2020.
On inflation, Mr. Ofori-Atta said Ghana is witnessing one of the lowest numbers on record in about two years. “Inflation, which, at the height of the pandemic, hovered around 11.8 percent, dropped to 7.5 percent in May 2021 before inching up slightly to 7.8 percent in June.
Mr Ofori Atta said the central bank will continue to implement appropriate monetary policy to maintain inflation rate within the target of 8 -2 percent. According to the minister, the cedi has been relatively stable in the past four years, and maintained its stability even in this pandemic year. Also, he said for the first time in the fourth republic, the exchange rate did not see a spike after an election year, and cumulatively, from the beginning of the year to date, the exchange rate has depreciated by 0.6 percent against the US dollar and appreciating by 3.6 percent against the Euro. “This stability is expected to continue as we move towards the close of the year,” the Minister indicated, and added that “the relatively strong performance of the external sector led to an increase in the reserves position to US$11.0 billion, equivalent to 5.0 months of imports, one of the highest on record.” This, he said, compares well with a reserved position of US$9.2 billion, equivalent to 4.3 months imports cover, in the corresponding period last year.
Discipline and integrity are cardinal in personal growth – GCB DMD
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he Deputy Managing Director, Operations, of GCB Bank, Mr. Emmanuel Odartey Lamptey, has reiterated that discipline and integrity are the cardinal principles for personal growth and development. He said personal achievement and becoming a person of value in society do not just emerge unless there were determination, deliberate efforts and actions on the part of the individuals especially the youth to realise these. Speaking at the Success Africa’ leadership conference at the University of Ghana, Legon in Accra, Mr Lamptey, said with self-discipline and integrity, one might emerge as an achiever irrespective of the background and conditions. GCB bank in line with its objective of reaching out to the youth in talent development and capacity building is sponsoring this year’s success Africa’s young leaders and entrepreneurs’ summit.
The event affords young people in the various tertiary institutions to be mentored by influential people in business and other aspects of society. This year’s summits and conferences are taking place in seven tertiary institutions across the country. The beneficiary tertiary institutions are the University of Ghana, Legon, Kwame Nkrumah University of Science and Technology (KNUST), Sunyani Technical University, Takoradi Technical University, University of Cape Coast, University of Development Studies, Tamale and S.D. Dombo University of Business and Integrated Development Studies, Wa. The mentorship programme and summit at the Kwame Nkrumah University of Technology (KNUST) and Takoradi Technical University, and Ho Technical Universities have already taken place. Mr. Lamptey, who represented the Managing Director of GCB, Mr Kofi Adomakoh, shared with
the young people his grass to grace story and how he worked his way up the ladder. Starting off from Bukom in the Ashiedu-Keteke Area in Accra, through basic education, Prebyterian Boys Secondary (PRESEC) and becoming a graduate at the University of Cape Coast, Mr. Lamptey urged the youth not to give up with little or initial setbacks they encounter in life. “In all these challenges and setbacks, there are opportunities and alternatives which you must take advantage to soar in life. Be resilient and bounce back. There is one thing you must not forget in life. Have time for your Maker. Even when you trip, go back to God, serve Him and be willing to learn and investment in knowledge acquisition,” he added. Mr. Lamptey advised them to invest in motivational and inspirational books, saying “personal development is a personal responsibility. You do not have to leave this to
teachers or the human resource department to do these for you. There should be a deliberate effort to feed your mind.” The Head of Corporate Affairs Department, GCB, Mr. Kojo Kwarteng, advised the students and youth who might find themselves in the corporate world to adapt to corporate culture and show respect to authorities in order to survive in the corporate environment. He said some of the issues relating to corporate culture could not be found in the books and could be learned by cultivating healthy relationship with experienced staff and mentors. The President of LEC Group, Mr. Albert Prempeh Kusi, explained that the organization is focusing on empowering the next generation of African leaders and entrepreneurs with quality and life transforming information, aimed at assisting them to make informed decisions about their lives.
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Mining
FRIDAY JULY 30, 2021
Chamber of Mines opens nominations for industry awards By Eugene Davis ugendavis@gmail.com
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he Ghana Chamber of Mines has announced nominations for the 7th edition of the Ghana Mining Industry Awards (GMIA). According to a statement from the chamber, the GMIA will recognise and honour organisations and individuals who have made significant contributions to the mining sector in Ghana. The adjudicating board of the GMIA has been drawn from the academia, government and civil society, considered to possess integrity and the requisite expertise to review and objectively determine deserving winners.
The members include Prof. Richard Amankwah, Vice Chancellor, UMaT; Mr. Richard
Kofi Adjei, Chief Inspector of Mines (MinCoM); Mr. Ebenezer Appah-Sampong, Deputy
Executive Director of the EPA; Mr. Sulemanu Koney, CEO of the Ghana Chamber of Mines; and Dr. Steve Manteaw, Co-Chairman of the Ghana EITI. The listed awards include: Lifetime Achievement Award, Mining Personality of the Year, Female Mining Professional of the Year, Best Performer in Innovation, Best Performer in Corporate Social Investment (CSI), Financial Deal of the Year, Best Performer in Contract Mining, Best Performer in Local Manufacturing of Mining Inputs, Best Performer in Mine Supplies & Services and Best Mining Reporter. The event is under the auspices of the chamber and supported by the Ministry of Lands and Natural Resources, Minerals Commission and the Environmental Protection Agency.
Q2,2021 gold demand flat, H1,2021 down 10%
S Gold Fields vaccinating South Deep mine employees, contractors
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old miner Gold Fields’ South Deep mine has received permission from the Department of Health to provide on-site vaccinations to all employees and contractors who wish to be vaccinated during the week of July 26 to 31. The vaccination of the workforce is currently under way in line with the necessary medical and administrative protocols, the miner said in a statement on July 29, adding that the vaccines are the first of a two-dose regime, with the second dose planned to be administered in the prescribed time period. “We have undertaken extensive education and communication efforts over the past months and are confident that a significant number of eligible employees and contractors will avail themselves
of this opportunity,” said South Deep occupational medical practitioner Dr Khutso Setati. He added that the mine was not in a position to start vaccinating employees’ family members or members of the surrounding community. “Getting vaccinated can mean the difference between life and death. We call on all South Deep employees to be courageous leaders for their families, their communities, our mine and our country by doing the right thing and getting vaccinated,” Setati said. South Deep has, so far, already vaccinated 1 628 of its people, representing just over 38% of the workforce. Source: miningweekly
trong consumer demand recovery and Q2 gold ETF inflows were not enough to offset heavy Q1 outflows. Gold demand for Q2 was virtually in line with Q2 2020 at 955.1t. That took H1 demand to 1,833.1t, down 11% y-o-y. Q2 jewellery demand (390.7 t) continued to rebound from 2020’s COVID-hit weakness, although remained well below typical prepandemic levels, partly due to weaker Indian demand growth. Demand for H1, at 873.7 t, was 17% below the 2015-2019 average. Bar and coin investment saw a fourth consecutive quarter of strong year-on-year gains: Q2 demand of 243.8 resulted in a H1 total of 594.t, the strongest since 2013. Modest Q2 inflows into goldbacked ETFs (40.7 t) only partly offset the heavy outflows from Q1; consequently, ETFs saw H1 net outflows (of 129.3 t) for the first time since 2014. Central bank buying continued in Q2. Global gold reserves grew by 199.9 t, which took H1 net buying to 333.2 t – 39% higher than the five-year H1 average, and 29% above the ten-year H1 average. Gold used in technology continued to recover from the 2020 lows: Q2 demand was 18% higher y-o-y at 80 t – in line with average Q2 demand from 2015-
2019 of 81.8 t. H1 demand (161 t) was fractionally above that of H1 2019 (160.6 t). Global gold ETF saw inflows of 40.7 tonnes (t) – US$2.5 billion in Q2. Inflows were concentrated in Western markets, with US, Germany and France all seeing double-digit tonnage growth in holdings. The US dollar gold price averaged US$1,816.5/oz during Q2, 6% higher than in Q2 2020.1 During the quarter, the price gained 4.3%, gaining support from ETF inflows and net long positioning. Q2 bar and coin investment increased 56% y-o-y. Thailand was the largest contributor to this growth after switching from net negative investment in Q2 2020 to modest positive investment. Jewellery demand extended its recovery but remains relatively soft. Demand continued to normalise from 2020’s anomalous levels but has yet to return to longer-term average levels. Global central bank net buying reached 200t in Q2. Large-scale purchases by Thailand, Hungary and Brazil drove this growth in global gold reserves. Total Q2 gold supply was 13% higher y-o-y; H1 was 4% higher. The industry experienced far less COVID-related disruption than in Q2 2020 – the most interrupted quarter last year.
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Feature
FRIDAY JULY 30, 2021
The top 21 money mistakes everyone must avoid in life
By Nelson Semanu & Elizabeth Boandoh-Korkor with Enoch Dzah
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he average human being is prone to making money mistakes. According to a recent study by Finder.com, 126.5 million Americans admit to making a significant money mistake in their lifetime, with 52% of men owning up to money malfeasance compared to 48% of women. Another survey from DepositAccounts.com states the problem is worse, with “a whopping 85% of Americans admitting to making financial mistakes over the last decade”. Annual incomes are also a big factor when assessing personal financial mistakes. This is from the Finder.com study: “People in lower-income brackets are far more likely to admit to making a money mistake than those in the top two income ranges,” the study noted. “For example, a whopping 37.5% of people earning up to $25,000 a year admit to making a mistake with their finances, while just 1.8% of Americans earning $300,000 or more who make these mistakes admit the same. Similarly, 44.7% of Americans earning $25,000 to $50,000 a year admit to making a money mistake, compared with 8.2% of Americans earning $150,000 to $300,000.” Millennials are most likely to admit to making a money mistake (33.9%), followed by boomers (30.3%) and Gen X (25.7%), the Finder.com report
said. From the above statistics, most people commit several money mistakes all throughout their lives. Though the statistics above refer to Americans, the case is no different from other parts of the world. In Africa, it is even worse as majority of her people have low levels of financial education. Money can be a powerful tool! Why publish this book at such a time? Well, money is everyone’s business. We all handle money and we all like it. Money is a powerful tool that can be used to transform a person’s life in every way. Money can make your family better. Money can make you enjoy your health. Money can even change the way you serve God. Money can make you eat better and live better. Why do we spend time and energy on this book? The reason is simple: Money mistakes can be costly. We have all made some serious money mistakes in the past. Some of those mistakes have cost us a lot. Having been through the fire, we thought it necessary to put these lessons into a book like this so other can read and learn from these mistakes. Money mistakes are more! We acknowledge the fact that there are many more of such money mistakes but in this book, we have decided to examine only twentyone of such. By our perspective, we believe these are the most common money mistakes that everyone who seeks to achieve
financial independence must avoid. Because most people are even ignorant of these mistakes, The Top 21 Money Mistakes Everyone Must Avoid in Life seeks to sensitize readers on these mistakes and how to avoid them. The Effects of Money Mistakes can be Disastrous. As you can see from the above, money can help us accomplish a lot of great things in this life, but its abuse can lead to a miserable life. Of all mistakes in life, money mistakes can be one of the most common ones that leaves its effects for a long time. Indeed, money mistakes affects all other aspects of our lives. Wrong decisions on money can affect one’s family, reputation, business, career and even a person’s faith. The effects of money mistakes can be disastrous. Money mistakes can really be costly, and we do not desire people to ignorantly commit these mistakes. We trust that this book will empower the average person on a continuous journey of financial success. That is why we wrote this book! Enjoy the read. Money Mistake #1 Being ignorant on money matters A wise man will hear and increase learning, And a man of understanding will attain wise counsel, ~Proverbs 1: 5 NJV It is incredibly sad that majority
of the people who desire to become financially free simply have no knowledge of what money is and how it works. It is difficult to master something you do not understand, and that explains why a lot of people are slaves to money. However, it is important to state that the first key to mastering money is to know money! What then does it mean to know money? To know money simply means to understand what money is and how it works. A wrong concept of money has led many people to commit certain unpardonable mistakes with money. You cannot control money until you know how it works! Most people spend their time reading the latest news on entertainment and every other happening except on things regarding money. If you are not reading books on how to make and manage money, you will end up working as a slave for money. Financial freedom is available to those who learn about it and work for it. ~Robert Kiyosaki To become financially independent, you need to understand how money works. For instance, as a principle, it is never enough to save money. To create more value from money, it must be invested to increase its time value. The mistakes many people make are that, they remain ignorant of what money is and how it works, and that explains why they struggle to become financially free.
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News
FRIDAY JULY 30, 2021
GRA witnesses GH¢212 million shortfall in tax revenue in first half of 2021
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he Ghana Revenue Authority (GRA) has collected GH¢25.89 billion in tax revenue as against GH¢26.1 billion targeted for the period, resulting in a GH¢212 million shortfall. The GRA said it collected GH¢18.45 billion in domestic tax revenue and GH¢7.44 billion from international trade or customs. Dr Charles Addae, Deputy Commissioner in charge of Research, Strategy, Policy and Programmes at GRA, announced this at a media briefing in Accra when giving an update on the country's tax mobilisation efforts and measures undertaken to shore up the country's taxes. He said the tax revenue collected in the first half of the year showed a nominal growth of 25.6 per cent. Dr Addae explained that if the tax collections from other tax revenue sources such as energy debt recovery, sanitation levy, Valued Added Tax and airport charges, the GRA had collected GH¢27.17 billion as against a target of GH¢27.25 billion, representing a GH¢28 million shortfall. Assessing the average
performance of the Authority, Dr Addae said it showed that the authority was hovering around 47.6 per cent, which was above 46 per cent recorded over the past five years. On the contribution of the various regions to the country's tax revenue, Dr Addae said the Greater Accra Region contributed 60.28 per cent, Western 5.02 per cent and Ashanti 4.2 per cent. The rest of the other 13 regions' contributions to the nation's tax revenue was very minimal, he
added. Dr Addae observed that with the linkage of the GRA's database to the National Identification Authority's database, it discovered that 33,500 professionals, including medical doctors, engineers, lawyers and IT experts who had Ghana-Card but did not have tax identification numbers(TIN). He explained that those elite professionals were earning high incomes and had, therefore, invited them for interrogation
to ascertain whether or not, they were paying taxes on their earnings. "We are chasing them because now we have their house and mobile phone numbers but that doesn’t mean that they don't pay taxes until we have finished the interrogation," Dr Addae explained. Dr Addae indicated that the Authority was working collaboratively with German International Corporation ( GIZ) and the Local Government, Decentralisation and Rural Development Ministry to digitise and capture houses and properties being used for commercial businesses and residential purposes to charge the appropriate tax rent on them. He advocated the need to intensify tax education drive and enforcement mechanisms to shore up the tax revenue. The GRA, this year, set a target of GH¢60 billion in tax revenue and based on the first-half performance, Dr Addae believed that it would meet the target. GNA
COVAX and World Bank to accelerate vaccine access for developing countries
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OVAX and the World Bank will accelerate COVID-19 vaccine supply for developing countries through a new financing mechanism that builds on Gavi’s newly designed AMC cost-sharing arrangement. This allows AMC countries to purchase doses beyond the fully donor-subsidized doses they are already receiving from COVAX. COVAX will now be able to make advance purchases from vaccine manufacturers based on aggregated demand across countries, using financing from the World Bank and other multilateral development banks. Participating developing countries will have greater visibility of available vaccines, quantities available, and future delivery schedules, enabling them to secure doses earlier, and prepare and implement vaccination plans more effectively. “This important and timely financing mechanism, made possible now by the World Bank and Gavi teaming up on the AMC cost-sharing arrangement, will allow COVAX to unlock additional
doses for low- and middle-income countries. As we move beyond initial targets and work to support countries’ efforts to protect increasingly large portions of their populations, World Bank financing will help us advance further towards our goal of bringing COVID-19 under control,” said Dr. Seth Berkley, CEO, Gavi, the Vaccine Alliance. The scalable mechanism brings together COVAX’s ability to negotiate advance purchase agreements with vaccine manufacturers with the World Bank’s ability to provide predictable financing to countries for vaccine purchase, deployment and broader health systems investments. The new mechanism will mitigate risks and uncertainties in country demand and financing ability. “Accessing vaccines remains the single greatest challenge that developing countries face in protecting their people from the health, social, and economic impacts of the COVID-19 pandemic,” said World Bank
Group President David Malpass. “This mechanism will enable new supplies and allow countries to speed up the purchase of vaccines. It will also provide transparency about vaccine availability, prices, and delivery schedules. This is crucial information as governments implement their vaccination plans.” Countries with approved World Bank vaccine projects that confirm the purchase of additional doses through COVAX will agree with COVAX on the number of doses of a specific vaccine as well as related windows of delivery. On receiving a request from the country, the World Bank will provide COVAX a payment confirmation, allowing COVAX to make advance purchases of large amounts of vaccine doses with manufacturers at competitive prices. Under the cost-sharing arrangement for AMC countries (92 low- and middle-income countries), COVAX plans to make available up to 430 million additional doses, or enough
to fully vaccinate 250 million people, for delivery between late 2021 and mid-2022. There will be several supply offerings where countries will have the opportunity to select and commit to procuring specific vaccines that align with their preferences. COVAX is co-led by the Coalition for Epidemic Preparedness Innovations (CEPI), Gavi, the Vaccine Alliance and the World Health Organization (WHO). The World Bank and COVAX will work in partnership with UNICEF and the PAHO Revolving Fund as key implementing partners to ensure safe vaccine delivery and supply of materials such as syringes, safety boxes and other items essential for vaccination campaigns. World Bank Group COVID-19 Response Since the start of the COVID-19 pandemic, the World Bank Group has deployed over $157 billion to fight the health, economic, and social impacts of the pandemic, the fastest and largest crisis response in its history.
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Feature
FRIDAY JULY 30, 2021
Building sufficient digital value and trust
By Richard Kafui Amanfu
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alue is the regard that something deserves importance, worth, or usefulness. It is also the principles or standards of behaviour— individual or collective. In ethics, value denotes the degree of importance of something or action, to determine what actions are best to do or what way is best to live or to describe the significance of different actions. It is also the monetary or nonmonetary worth given to virtual assets or contents. Trust is the firm belief in the reliability, truth, or ability of someone or something. Trust is the most important business and brand asset you manage, especially in relationships with customers, clients, employees, and stakeholders. An economy works because people trust each other and the businesses they support. Companies everywhere are pursuing digitalization projects— putting emerging technology into action while aiming to solve problems, create unique experiences, and accelerate business performance. By doing this, value and trust must be created. Digital value is the business value or economic value generated through digitization. All economic systems and business interactions result in costs for information exchange, coordination, safeguarding, enforcing, etc. Digitalization lowers these costs and therefore gives a free rein to value and is expected to bring greater tangible and intangible value. In a traditional sense, digitalization refers to the use of computer
and internet technology for a more efficient and effective economic value creation process. In a broader sense, it refers to the changes that new technology has overall; on how we operate, interact, and configure, and how wealth is created within this system. It has become clear by now that digitalization has an obvious, lasting, and even revolutionary impact, not only on the economic systems and commercial players but increasingly on the lives of individuals and on society at large. However, it is important to understand the opportunities and potential challenges surrounding value creation in digital environments. Digital value constitutes worthiness desired based on the use of digital information and communication technology, resulting in goods and services that possess some inherent quality. Digital trust then is the confidence users have in the ability of people, technology, and processes to create a secure digital world. Digital trust is given to companies who have shown their users they can provide safety, privacy, security, reliability, and data ethics with their online programs or devices. For example, Amazon has created value over the years and built trust. Since its beginnings in 1994 as an e-commerce pioneer selling books and CDs online, Amazon has had to continually transform itself to grow. It is the world’s largest online retailer of books, clothing, electronics, music, and other goods, developing in new business areas, and, in 2020, earned net sales revenue of over 380 billion U.S.
dollars. Despite selling physical books, Amazon also introduced the Kindle and eBooks. In addition, it is threatening other businesses like Netflix and TV networks with its own content. Also, it became a leader in cloud services and hugely profitable in this field. Amazon Web Services (AWS) generates annual revenues and margins in excess. Due to global interest in cloud services and the disruption they are causing across various sectors, AWS has played an increasingly important role in the cloud services industry and has become an important revenue earner for Amazon. With its trusted and secure solutions, customers can rely on its services. Digital trust has already become critical to how you develop and maintain positive, long-term relationships with your customers and other stakeholders. Building digital trust requires businesses to shift their efforts in identity, security, and compliance to a more inclusive customer engagement strategy. If the lifeblood of the digital economy is data, its heart is digital trust—the level of confidence in people, processes, and technology to build a secure digital world. Companies that show the connected world how to lead in safety, security, reliability, privacy, and data ethics will be the titans of tomorrow (2018 Digital Trust Insights). When a person decides to use a company's product, they are confirming their digital trust in the business. The more digital trust a company receives, the more likely it will be to gain more users. Trust underpins the success of every business, traditional or new age. Each transaction and
interaction on a personal, societal, and business level requires the establishment of trust. Businesses should make it clear to users what they stand to gain from their services and products, or technologies, by addressing what people are alarmed about, and emphasizing what people are giving up. Businesses should also focus on removing risk because it negatively affects a consumer's confidence level. As some businesses have started including cybersecurity and privacy personnel in their development process from the beginning, instead of ignoring them, it helps ensure the company is not avoiding security measures just to get their service or device on the market. Some businesses have also started adopting the zerotrust model which decreases the number of opportunities a hacker has to access secure content by limiting who has privileged access to different machines or segments of the network. As businesses strive to grow and create value through digitalization, it is relevant to consider building sufficient digital trust controls. There should be a deliberate effort to evaluate whether their personnel have the right skills aligned to design, build, and sustain digitalization initiatives, and if there is the need, acquire external resources. Tie security and trust in business the right way, in order not to misalign business objectives Author: Richard Kafui Amanfu – (Director of Operations, Institute of ICT Professionals, Ghana) For comments, contact richard. amanfu@iipgh.org or Mobile: +233244357006
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International
FRIDAY JULY 30, 2021
Covid-19: Biden tells states to offer $100 vaccine incentive as cases rise
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he president also issued a strict new vaccine requirement for US federal workers, the nation's largest workforce with some two million people. The order requires employees to show proof of vaccination or be subjected to mandatory testing and masking. Just under half of the US is fully vaccinated, according to official data. Speaking from the White House on Thursday, Mr Biden said that the new measures are a result of the highly contagious Delta variant's spread, made worse by a "pandemic of the unvaccinated". "People are dying and will die who don't have to die," the president said. Mr Biden added that the monetary incentive may seem unfair to already vaccinated Americans, but "we all benefit if we can get more people
US President Joe Biden has called for states to offer $100 (£71) to the newly vaccinated in an effort to address flagging jab rates amid virus surges.
vaccinated". States would use money from the $1.9tn American Rescue Plan legislation to fund the incentives. Mr Biden said that the federal government will be "fully reimbursing" small or mediumsized businesses that provide workers paid time off to get vaccinated.
While government workers who refuse to get vaccinated will not be fired, this move by the White House aims to set an example for other employers nationwide. The Democratic president also addressed theories, spreading mostly in conservative circles, that the jabs are unsafe.
He emphasised there "is nothing political" about the vaccines, which were developed and authorised under a Republican administration and further distributed under his. Last month, a study showed that over 99% of Covid-19 deaths have been among the unvaccinated. Nearly 70% of adults have received at least one jab, according to the latest data from the Centers for Disease Control. But vaccination rates are varied across the country. Southern and western regions, which are now experiencing Covid outbreaks, have much lower rates. It comes as virus-related deaths climb to around 2,000 per week. New cases are now at their highest point in the last three months, with about 60,000 being recorded per day. BBC
Amazon predicts slower sales growth as Covid boost eases
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ustomers turned to Amazon and other online platforms during the Covid crisis, leading to record profits for the US giant. But Amazon's breakneck growth is beginning to level as customers start to return to bricks and mortar shops. Revenue climbed 27% to £113bn (£80bn) in its second quarter, but this missed analyst expectations. Amazon shares fell 5% in afterhours trade. Earlier in the Covid pandemic Amazon posted record profits, signed up more than 200 million customers to its Prime service, and recruited more than 500,000 workers to keep up with surging demand. But vaccine rollouts and easing of restrictions have led some consumers to venture out to stores, while also using click-andcollect services, in competition with the speedy delivery of online orders provided by Amazon and its peers. Amazon's net sales rose to $113.08bn in the second quarter to 30 June from $88.91bn in the same period a year earlier. Analysts on average had expected $115.20bn. The world's biggest online retailer had moved its annual marketing bonanza, Prime Day, to June this year, hoping to sell more
goods before shoppers went on holiday. It said the event was the biggest two-day sales period ever for merchants on its platform. But in the second quarter analysts have seen signs of slowing demand. North America, Amazon's largest market, saw sales increase 22% in the second quarter, versus 43% in the same period a year earlier. But profit rose 48% to $7.8bn, the second-largest quarterly result Amazon has ever announced. Bezos moves The retail giant's founder Jeff Bezos stepped down as chief executive on 5 July, becoming executive chair of Amazon's board. Andy Jassy took on role, after previously being in charge of Amazon's cloud computing division, Amazon Web Services (AWS). In the second quarter AWS was a bright spot, seeing revenue rise by 37% to $14.8bn. Mr Jassy said: "Over the past 18 months, our consumer business has been called on to deliver an unprecedented number of items, including PPE [personal protective equipment], food, and other products that
Amazon has predicted slower sales growth in the third quarter as a boost from the Covid pandemic subsides.
helped communities around the world cope with the difficult circumstances of the pandemic. "At the same time, AWS has helped so many businesses and governments maintain business continuity, and we've seen AWS growth reaccelerate as more companies bring forward plans to transform their businesses and move to the cloud." Amazon's are the latest results from Big Tech this week. Apple, Microsoft and Google's parent firm Alphabet all reported soaring profits as the Covid pandemic continues. Facebook, however, said that it expects revenue growth to slow. Nicholas Hyett, equity analyst at Hargreaves Lansdown, said: "It's saying something when you can report quarterly sales roughly equal to the annual GDP of Ukraine and 33% operating profit growth and still disappoint the market.
"You can see why Jeff Bezos would rather be jetting off into space. "In all seriousness though, Amazon is increasingly bumping up against the law of large numbers - particularly in US retail. "When you're only selling $1,000 of product a year, boosting sales by 40% is easy. When your annualised sales reach $400bn, finding an extra $160bn of sales is pretty difficult." Mr Hyett said that means that Amazon is having to spend a lot to deliver future growth. "The group's got plenty of irons in the fire for the future, it just needs to hope one of them comes off big," he added. The top job that Mr Jassy inherited has never been bigger and more complex. BBC
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Feature
FRIDAY JULY 30, 2021
Globalisation strikes back
By Richard Haass
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he still-raging pandemic and climate-related disasters worldwide demonstrate the woeful inadequacy of efforts to address the problematic aspects of globalization. The so-called international community has again shown itself to be anything but a community. The summer of 2021 has come to be largely defined by the ongoing COVID-19 pandemic and accelerating climate change. Both are manifestations of globalization and the reality of a world increasingly defined by the vast and fast cross-border flows of just about everything, from goods, services, and capital to data, terrorists, and disease. Little nowadays stays local for long. The lethal coronavirus that first appeared in Wuhan, China did not remain there, and greenhouse gases emitted anywhere warm the atmosphere and ocean everywhere. These two crises demonstrate the woeful inadequacy of efforts to address the problematic aspects of globalization. The socalled international community has again shown itself to be anything but a community. The supply of COVID-19 vaccines is billions of doses short of what is needed. The funds to pay for global immunization are likewise billions of dollars short. Governments are putting their countries first, even though fastspreading variants are emerging in under-vaccinated populations elsewhere and are indifferent to political borders. As a result, the pandemic remains an intense threat. The death toll thus far is said to be over four million, but the real figure is several times
higher, owing in some cases to flawed reporting systems and to deliberate undercounting by populist leaders in Brazil, India, Hungary, Russia, and elsewhere. The economic consequences are likewise substantial, with the pandemic estimated to have reduced global GDP by over 3%. Approximately 100 million people have fallen back into extreme poverty. Inequality between and within countries has spiked. What makes these developments all the more frustrating is that we know what to do about COVID-19 and possess the means to do it. Several safe and extraordinarily effective vaccines exist. What remains to be done is to scale up production to meet global demand. In some countries, such as the United States, what needs doing is the opposite: to increase demand to meet the available supply. Vaccine hesitancy, fueled by partisan politics or misinformation circulating on social media, television, and talk radio, has become dangerously widespread. If vaccination were complemented by publichealth measures known to slow the spread of disease – masking, social distancing, readily available and accurate testing and contact tracing, and quarantining – there would be far fewer and less severe infections, and the pandemic as we know it would fade away. The effects of the other crisis, climate change, have arrived sooner than many anticipated. For years, the tendency has been to put off any concerted response to the threat, despite clear and growing evidence that the planet is warming. As is often the case, the urgent crowded out the important. But the summer
of 2021 is showing that climate change is both important and urgent. Its effects are many. In the US, wildfires in the West rage out of control as the temperature climbs, and smog has blanketed swaths of the country. Europe and China are the scenes of massive flooding. In Africa, Latin America, and the Middle East, there are signs of prolonged drought. The loss of life has been relatively modest, but it could well grow. Economic effects will likewise mount. The number of people who are being internally displaced or forced to migrate is rising sharply as large tracts of territory become inhospitable to human life. There is much talk about how to slow or stop climate change, but it is mostly just that. The United Nations climate-change conference (COP26) in Glasgow in November will continue to emphasize an approach whereby individual countries offer voluntary commitments to reduce their emissions. This is important, but it is obvious that many countries are focused more on economic growth at all costs, and are unable or unwilling to adopt energy paths that will meaningfully reduce their contribution to climate change. It remains to be seen whether there is the will to adopt tariffs that raise the prices of goods made in factories fueled by coal, or to impose sanctions against governments that refuse to stop the destruction of rainforests that absorb carbon dioxide. Also to be determined is whether wealthier countries are prepared to make available the funds and technologies that poorer countries need to shift to a greener energy mix. At the same time, focusing
on slowing the rate of climate change, however necessary, is insufficient. A good deal of climate change has already happened, and more will happen regardless of what is decided in Glasgow. Efforts to adapt to existing or inevitable effects of climate change, to make cities and rural areas alike better able to withstand pervasive heat and sprawling wildfires, more frequent storms and floods, and more severe drought, will also be needed. Resilience will be as important as prevention. Lastly, we must accelerate both the development and regulation of new technologies that promise to remove CO2 from the atmosphere or reflect sunlight away from Earth. Such potential responses to climate change are unproven and controversial. But if the collective failure to deal with COVID-19 is any indication, we had better be prepared to consider them sooner rather than later. There is no escape from globalization; the only question is whether and how we choose to manage it. Richard Haass, President of the Council on Foreign Relations, previously served as Director of Policy Planning for the US State Department (2001-2003), and was President George W. Bush's special envoy to Northern Ireland and Coordinator for the Future of Afghanistan. He is the author, most recently, of The World: A Brief Introduction (Penguin Press, 2020).
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BUSINESS24.COM.GH FRIDAY JULY 30, 2021
NO. B24 / 228 | NEWS FOR BUSINESS LEADERS
MONDAY MAY 3, 2021
FRIDAY JULY 30, 2021
FBNBank introduces multiple-use visa prepaid card
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BNBank Ghana has released an internationally accepted and multiple-use visa prepaid card into the market. This is the latest of its offerings to customers and clients of the bank aimed at delivering convenience, security and privacy. The card which was launched as one of the highlights of the bank’s 25th anniversary celebration delivers several benefits to users. These include multiple use over a 36-month period and worldwide acceptance on all Visa-enabled platforms and Automated Teller Machines (ATMs). A statement issued in Accra by the bank said the card also limited spending to only the funds available on it as it was a “standalone” and, therefore, not linked to customers’ accounts. Other benefits include a dual currency feature which allows for loading in Ghana cedi and US dollars, in addition to the fact that it can be used by individuals, corporate entities and families to restrict spending on travels,
projects or errands. Benefits Speaking about the benefits and features of the card, the Head, E-Business Solutions at the bank, Mr Alexander Markwei, said, “In our daily dealings with our customers and clients, we are able to pick out what they expect of us and what their needs are. These insights enable us to make available products which meet their expectations and make life less stressful for them.” He said “the features of the FBNBank Ghana Visa Prepaid Card uniquely address the needs of a number of customer groups with the added benefit of overlapping into areas which though offer a benefit, completely come as a plus. With features such as EMV Chip and PIN-enabled in addition to being a “stand-alone”, our customers can enjoy the use of a low-risk product on several platforms, including the internet,
to make purchases. The multiple use lends the card to a variety of needs from personal through family or group use to several corporate purposes. For us at FBNBank, our commitment to our brand promise enjoins us to continue offering our customers and clients the ultimate gold standard of value and excellence. This is what drives us to remain focused on making life easier for our customers and clients”. The FBNBank Ghana Visa Prepaid Card can be co-branded for organisations for specific
occasions and comes with several safety features, including Contactless, EMV (Europay, MasterCard and Visa) Chip and PIN-enabled for optimum protection, default but adjustable spend limit for ATMs and Point of Sale (POS) devices and customised daily spending limit. It also offers low risk in terms of fraud when used on the internet. In addition to its use for personal reasons, the FBNBank Ghana Visa Prepaid Card can also be used as a gift card, a salary card, a health card, a travel card, savings card and also an internet card.
UNDP supports waste management innovations in schools
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he United Nations Development Programme (UNDP), in partnership with the Coca-Cola Foundation, have awarded three senior high schools a total of 9,000 US dollars to enable them implement innovative waste management projects in schools. The waste innovation challenge, which was organized under the Ghana Waste Recovery Platform, aimed to support young people in Ghana to develop innovative solutions for waste management towards the achievement of the Sustainable Development Goals (SDGs). St. Catherine Senior High School, from Agbakope in the Volta Region, emerged winners of the competition and received $4,000 dollars to support their project, which seeks to empower students and teachers to manage domestically generated waste. Also, sewage from the students’ bathhouse will be connected to a receptacle and later used to irrigate the school garden and
promote tree-planting projects in the school. Moreover, solid waste materials will be transferred from the school’s kitchen and compound into a compost pit to serve as manure, and this will be used to support the growth of plants in the school’s premises. First runner up, Obuasi Senior High Technical School was awarded 3,000 US dollars for the design of a working prototype of a solar powered contactless waste segregation bin to encourage reuse and recycling. With an innovative idea to build an automatic waste sorting bin to
make separation of waste easier and enable efficient recycling, the Methodist Senior High School, the third winner, was awarded 2,000 US dollars. The young innovators excitedly received their awards with cheers and thanked UNDP and the Coca Cola Foundation for the support. “Winning this is a dream that has come true. We are now ready to implement this project and grateful for this opportunity”, said Essien Rita, one of the students from the St Catherine Senior High School. The Head of Environment and Climate Cluster at UNDP Ghana,
Paolo Dalla Stella, encouraged young people to play an active role in waste management. “Engaging young people in sustainable waste management will positively impacts their attitudes and behaviors, so they can adopt and promote environmentally friendly practices in their schools and homes,” he stated. The Innovative Solutions for Waste Management Challenge was a competition for second cycle schools and aimed to promote awareness on the challenges of waste, solutions for integrated waste management, segregation at source especially at the household level and how individuals, institutions, schools, corporations, government and civil society can get involved to promote sustainable waste management. The challenge received over 30 entries amongst which Aburi Girls’ Senior High School and Cape Coast Technical Institute emerged fourth and fifth respectively.