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FRIDAY OCTOBER 15, 2021
BUSINESS24.COM.GH
Friday October 15, 2021
NO. B24 / 261 | News for Business Leaders
GIPC talks up Ghana at Expo 2020 Dubai
Akufo-Addo calls for election to ECOWAS Parliament by universal suffrage
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See back page
Kosmos ups stakes in Jubilee, TEN fields for US$550m
Funding difficulties stifling renewable power development— Deputy VRA CEO
By Benson Afful
By Emmanuel Kwarteng
affulbenson@gmail.com
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he Deputy Chief Executive Officer of the Volta River Authority (VRA) in Charge of Finance, Dr. Ebenezer Tagoe, says difficulty in sourcing long-term competitive financing poses a key challenge to industry players as government strives to move renewable power to a projected 10 percent of the nation’s energy mix. Addressing participants and industry players at the 7th Ghana Renewable
osmos Energy has acquired an additional 18 percent interest in the Jubilee field and an additional 11 percent interest in the TEN fields from Occidental Petroleum (OXY) for a purchase price of US$550m. Consideration due to OXY at completion was approximately US$460m after taking into account closing adjustments, said the company in a statement. Andrew G. Inglis, Chairman and Chief Executive Officer of Kosmos, said this is a compelling transaction for Kosmos that
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Business24 hosts real estate players to discuss affordable housing By Patrick Paintsil p_paintsil@hotmail.com
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hana’s premier e-Newspaper and digital media firm, Business24 Limited, will organise its maiden Real Estate Conference (REC2021) on Tuesday, October 19, 2021, at the Labadi Beach Hotel in Accra.
Mr. Asenso Boakye, Minister for Works & Housing
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Editorial / News
FRIDAY OCTOBER 15, 2021
Editorial
Time to revisit the famed ‘affordable housing’ debate
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here is nothing affordable about housing in this country but the term “affordable housing” is loosely used whenever there is any discussion about promoting access to decent accommodation for the everyday Ghanaian. City dwellers have to go through emotional and financial distress in search of where to call home and most often have to acquire their places of abode having to empty their little savings. Ghana’s housing deficit is estimated at more than two million units and continues to rise due to population growth, urbanisation, rising incomes and shrinking household sizes. Heightening the situation is the absence of a workable state
policy on rent, which has seen most average Ghanaians in search of decent accommodation spend a chunk of their earnings on exorbitant rent payments. Sadly, the state is not in the position to put the situation under control as property owners and landlord cite the ballooning cost of building raw materials as the basis for their skyrocketing rent. Rent advance ranges between one to three years, making useless of the existing legislation that pegs it at a six-month maximum. At the other side of the housing conundrum is the upscale apartments that sit idle as a result of unattractive and mostly unfeasible mortgage arrangements on such
properties. It is to set the tone for workable actions on this worrisome phenomenon that Ghana’s leading e-Newspaper and digital media, Business24 is introducing its annual Real Estate Conference, and quite timely and appropriate, the maiden edition will discuss the affordability of affordable housing in the country. Policymakers and housing providers will have to stop paying lip service to this canker and we hope to get concrete actions from both the government and other industry players aimed at ameliorating the pain of Ghanaians in search of safe, decent and truly affordable housing.
Kosmos ups stakes in Jubilee, TEN fields for US$550m Continued from cover
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accelerates the company’s strategic delivery and is expected to provide long-term sustainable cash flow from fields where Kosmos has a deep understanding of the value and future upside. “We expect the additional Ghana interests to generate around US$1bn of incremental free cash flow by the end of 2026 at US$65 Brent, with upside given current prices. We plan to use the additional cash flow from these assets to reduce absolute debt levels and fund our growth in LNG,” he said. “The transaction creates a simplified and aligned partnership in both the Jubilee and TEN fields, with both Kosmos and GNPC increasing their ownership. The partnership is committed to investing in both fields to maximise the value of the assets and reduce the carbon intensity of operations for the benefit of all stakeholders,” he added. Interests acquired The acquisition of the additional stakes increases Kosmos’ interest in Jubilee to 42.1 percent and in TEN to 28.1
percent. The transaction is subject to a 30-day pre-emption period, which, if fully exercised, could reduce Kosmos’ ultimate interest in Jubilee by 3.8 percent to 38.3 percent, and in TEN by 8.3 percent to 19.8 percent. Prior to closing the transaction, OXY resolved certain historical tax claims related to the sold interests. Using Kosmos’ year-end 2020 reserves report, prepared by independent reserve auditor Ryder Scott, estimated 2P reserves being acquired as part of today’s transaction were approximately 104m barrels of oil equivalent at year-end 2020. The acquired assets are currently producing approximately 17,000 barrels of oil per day net and are expected to generate approximately US$325m of EBITDAX in 2022 at $65 Brent. Kosmos said it has worked closely with the operator and joint venture partners in 2021 to drive higher reliability and improve operational performance in Ghana. “Significant progress has been made with new wells delivering higher production, high levels of FPSO uptime,
near-record water injection, and materially higher gas offtake,” it said. Transaction financing According to the company, the transaction has an effective date of April 1, 2021. It said the Government of Ghana has approved the transaction, which closed on October 13, 2021. To fund the transaction, Barclays and Standard Chartered Bank have provided Kosmos with a US$400m bridge loan, which the company expects to refinance with the proceeds from a future senior note offering. Kosmos added that “the remaining consideration was funded from available liquidity, which the company expects to refinance with the proceeds from the equity offering of approximately US$100m announced today.”
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Business24 hosts real estate players to discuss affordable housing Continued from cover The one-day event is being held in collaboration with the Ghana Chamber of Construction Industry (GHCCI) on the theme “Affordable Housing for Every Ghanaian: A Myth or Possibility”. It will convene a carefully selected group of industry players, professionals and experts to engage in discussions that seek to match the various challenges of affordable housing development to workable solutions. Ghana’s housing deficit is estimated at more than two million units and continues to rise due to population growth, urbanisation, rising incomes, and shrinking household sizes. Heightening the situation is the absence of a workable state policy on rent, which has seen most average Ghanaians in search of decent accommodation spend a chunk of their earnings on exorbitant rent payments. The Business24 Real Estate Conference will set the platform for discussions on government actions aimed at promoting affordable housing and the creation of a vibrant housing
market that will deliver the housing needs of Ghanaians. The conference will be officially opened by the Minister for Works and Housing, Mr. Francis AsensoBoakye. Top real estate gurus that will be speaking at the conference include Mr. Samuel Amegayibor, Executive Secretary of the Ghana Real Estate Developers
Association (GREDA); Mr. Prosper Yao Ledi, National President of the Association of Building and Civil Engineering Contractors of Ghana (ABCECG); and Mr. Emmanuel Cherry, Chief Executive Officer of the Ghana Chamber of Construction Industry (GHCCI). The rest are Frank Oppong Yeboah, Manager, Mortgage Business, Republic Bank; and
Arc. S.M Quartey, President of the Ghana Institute of Architects. The maiden Business24 Real Estate Conference is sponsored by Lakeside Estates, GT Bank, Nespresso, and Jamila Home. The media partners are Business24 e-Newspaper, Asaase Radio, Class Media Group, and Dominion Television.
Funding difficulties stifling renewable power development—Deputy VRA CEO Continued from cover Energy Fair, he said: “Renewable energy is a great business venture for the VRA and is in line with the government’s policy to have at least 10 percent of our
power generation source from renewables. But currently, that sub-sector can be seen as challenged, with bottlenecks from financial, technical and market fronts.” He added: “Also, uncertainty
surrounding pricing of renewable energy technologies elevates the risk factor, which makes banks shy away from financing renewable energy development projects.” Investment in renewable energy development in the country faces considerable challenges, including the macroeconomic situation; perceived risk by the financial sector; unfavourable financing terms and conditions, such as high commercial interest rates and limited tenor loans; and high inflation and currency depreciation. “Renewable energy is key to the development of Ghana’s power sector, and significant investments are required to address these challenges to enable the country achieve its ambition of at least 10 percent of its power generation being sourced from renewables,” the deputy CEO added. Dr. Tagoe said that VRA, as
the foremost power-generating company in the country, will enhance its investments in renewables. He however decried the delay in rolling out projects due to the need to develop frameworks to operationalise the amended Renewable Energy Act to implement policies like net metering and competitive sourcing of renewable power generation. Renewable energy is central to the achievement of both the 2030 Agenda for Sustainable Development and the Paris Agreement on climate change. Several countries around the world are searching for sustainable and renewable alternatives to their energy supply due to factors such as the increasing demand for energy, the decline in fossil fuel reserves, and global climate change.
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FRIDAY OCTOBER 15, 2021
Republic Bank committed to cocoa industry – Bernard Gyebi
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he General Manager, Risk Management of Republic Bank (Ghana) PLC, Mr. Bernard Gyebi has reiterated the Bank’s commitment to the cocoa business and other commercial agricultural products in Ghana. He underscored the commitment when he spoke at the 2nd African Cocoa and Chocolate Expo held at Asamankese, organised by the Know Your Cocoa Foundation (KYC) in partnership with the Ghana Export Promotion Authority. According to Gyebi, Republic Bank has made significant contributions to the cocoa industry over the past decades. Republic Bank is the only universal bank with high banking presence in the cocoa growing areas within the western areas of Ghana. The bank has branches in cocoa growing areas such as Asankragua, Goaso, Sefwi-Bekwai, SefwiWiawso, Akontombra, Juaboso, Asempaneye and others. “Operating fully networked
saw various stakeholders in the cocoa value chain coming together to discuss the cocoa business as well as its financing in Ghana. Republic Bank has since maintained the business engagement within the cocoa value chain. Mr. Gyebi also commended government for the mass spraying and other strategic government interventions in the cocoa sector.
branches across the length and breadth of the country comes with its own challenges. However, we understand the value of cocoa to Ghana’s economy and we are
happy to be the financial partner of choice for our cocoa farmers,” Mr. Gyebi added. In 2017, the bank had its first Cocoa Summit in Kumasi which
African Cocoa and Chocolate Expo (ACCE) is organized annually to recognize the urgent need to promote the value of cocoa leading to its increased consumption. The aim of the event was to showcase innovations and achievements within the cocoa industry whilst bringing ‘Cocoapreneurs’, coco enthusiasts and the general public together for networking as well as engaging in thought provoking discussions on a cocoa farming while bonding with nature.
2nd Africa Private Sector Summit to discuss workable actions to drive AfCFTA By Patrick Paintsil p_paintsil@hotmail.com
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he Ghana National Chamber of Commerce and Industry, in collaboration with the private sector-led think-tank, Africa Private Sector Summit (APSS), will be organising the second in the series of its annual summit to proffer actionoriented discussions around the role of the private sector in the single continental market. The four-day summit is scheduled to start on Tuesday, 19 October, 2021 to Friday 22nd October, 2021 at the Kempinski Hotel, Accra, on the theme “Awakening Africa’s Sleeping Giants in Implementation of Regional Economic Commissions (RECs) and African Continental Free Trade Agreement (AfCFTA) - Leveraging Strategic Opportunities for Africa’s Turnaround”. The summit will convene industry giants, policymakers, public and private sector actors and entrepreneurs across the continent of Africa to deliberate
on topical issues that will, among others, raise awareness on wealth creation on the continent by leveraging its abundant resources to promote its global competitiveness. It also seeks to move the deliberations on the AfCFTA from planning to action-oriented implementation through intentional commitments and stakeholders’ alliances – private sector, academia, labour, civil society organizations (CSOs), consumers, and the public sector. “As a Chamber, it is our considered view that promoting and protecting trade and investment is critical in driving a country’s development agenda within an atmosphere of cooperation and partnership,” President of the GNCCI, Clement Osei Amoako, said at a media briefing on the upcoming event. The African Continental Free Trade Area covers the entire continent with a population of 1.2 billion and a combined GDP of $3.4 billion with a core objective to increase intra-African trade and investment through
harmonization and coordination of continental trade through successive rounds of negotiations that progressively eliminate tariffs and non-tariff barriers to trade in goods and liberalize trade in services. Currently, intra-African exports stand at about 17percent of total continental exports, and the GNCCI boss believes that increasing this share will go a long way to increase value addition,
enhance employment creation and improved incomes and livelihoods and ultimately lifting millions out of poverty. Mr. Amoako added: “A World Bank study states that if Africans implement this agreement effectively, there is an opportunity by the year 2035 to lift 100 million Africans out of poverty with additional 30 million Africans being lifted out of extreme poverty.”
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FRIDAY OCTOBER 15, 2021
Enterprise Life hits Kejetia with insurance campaign
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nterprise Life, an insurance firm, has launched its ‘Boafo Pa’ product, a savings product with an inbuilt cover targeted mainly at the
informal sector. The new policy is a life assurance product that is aimed at providing an innovative opportunity for clients to build
a stable savings and retirement account as well as life insurance and general insurance benefits. It is a savings product with an extension to cover other
risks including death cover, accidental permanent disability, hospitalisation, asset all risk and investment (savings and pension). Speaking at the launch at Kejetia in the Ashanti Region, the General Manager for Distribution at Enterprise Life, Mr Francis Akoto Yirenkyi, urged traders on the need to get themselves insured in their businesses. He said there was finally hope for the informal sector as they now had a policy they could fall on in times of need. He stated that there was no need to go to any Enterprise Life outlet but they could just dial a short code and follow the prompts to get signed onto the product. Mr Yirenkyi noted that the Boafo Pa insurance policy would help traders get loans from any financial institution, adding that some traders found it difficult to get loans to open their businesses (unlike government workers) so the policy would provide great opportunities for traders to get loans at any time and help them pay it back without difficulties. He stated that the Enterprise Life ‘Boafo Pa’ had come to provide a lasting solution for every pocket even though it was targeted at the informal sector. He advised business-oriented persons, including government officials, to take the advantage and transact business with Enterprise Life.
Ghana Card registration: Controller to halt salaries of government workers not registered
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he Controller and Accountant-General has called on all government workers to register with the Ghana Identification Authorities (NIA) latest December 1, 2021. It said workers on the government of Ghana payroll who have not registered with the NIA effective December 1, 2021, will not be paid. This was contained in a statement signed and issued by the Acting Controller and AccountantGeneral, Kwasi Kwaning Bosompem on Tuesday, October 12, 2021. It said the move is to have a harmonised database to
facilitate biometric and unique
identification of all workers on
the government payroll.
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FRIDAY OCTOBER 15, 2021
Stanbic to provide US$5.8m support for cassava processing
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tanbic Bank is working with its partners within the agribusiness sector to facilitate a US$5.8 million funding for the construction of a cassava/ starch processing factory in Jomoro in the Western Region. It is part of the bank’s value addition support for the agricultural sector. Benedict Kwasi Obeng, acting Head of Agribusiness, Stanbic Bank, revealed this at the 6th Agricultural Industrialization Conference held in Takoradi and organized by the Torchbearer International Agricultural Science and Technology (TIAST) Group. “As part of our interventions for growth in the sector, we are finalizing a financing support of US$5.8m for a cassava starch processing farm in Jomoro,” he said. According to Benedict, who is also the Head of Business Development and Origination at the bank, Stanbic’s support for the country’s agricultural sector is another opportunity for the bank to drive the country’s growth. “For us at Stanbic, this partnership is another opportunity to drive Ghana’s growth and we will work with TIAST to ensure that the markets
are properly developed and that our farmers don’t get saddled with low prices that cassava currently brings in. We are rather aiming for prices in the region of what the cocoa crop commands,” he said. He further underscored the need for farmers to organize and position themselves properly to safeguard their interests as farmers. He noted that “To tap into the export market, we encourage cassava, rice and other crop farmers to be consistent and predictable in the quantities and qualities they make available. As we go into this old but new area, we do not expect to see individual farmers chasing small volumes. For example, we should be able
to organize a Ghana cassava exporters group, which will look out for the interest of every cassava farmer. This is equally applicable to other crops.” “We believe in finding new ways of with such a body, it will be easier to approach the export market with your produce. The group can then sign a ton per acre contract in US Dollars and this they would work backwards to ensure that each individual farmer reaps the full benefit of trading on the international markets. It is in this light that the Ghana Export Promotion Authority has approached the partnership to support and drive the initiative for value across the value chain and ultimately impact the Agricultural sector and the
economy as a whole,” he added. Mr. Obeng further noted that Stanbic Bank’s partnership with the TIAST Group reinforces the bank’s credentials as a key partner for China-Africa trade relations. He said “The deal further cements Stanbic Bank’s Africa-China Banking Proposition (ACAP) designed to assist clients who engage in international trade with China. Through this proposition, we are able to effectively facilitate the exportation of processed cassava and starch to China and other parts of the world.” Madam Priscilla Fiati, a Business Development Manager at the TIAST Group, mentioned that the demand for some of the processed end products like cassava starch has gained a huge demand on the international market exceeding its supply which Ghana must benefit by producing for this ready market. She noted that China alone imports over three million of cassava starch every single year worth US$30 billion and expressed the hope that Ghana can be part of a value chain where everything we produce can earn us millions of US dollars annually, help create more jobs and alleviate poverty.
Angela Kyerematen-Jimoh named among top women CEOs in Africa The Regional Head of IBM North, East and West Africa, Mrs Angela Kyerematen-Jimoh, has been named in the list of 50 women chief executive officers (CEOs) leading corporate Africa. The list was compiled by Africa. com over many months through a deep research effort to examine the management of big businesses in Africa. Africa.com is a media holding
company with an extensive array of platforms that reach a global audience interested in African content and community. Big business, for this purpose, is defined as being listed on one of Africa’s stock exchanges and having a market capitalisation of over $150 million or being a global publicly listed company with a market capitalisation of over $50 billion and significant operations
in Africa. Harvard Business School Professor Mayo, will today at a summit present his research findings on what it takes for African-American women to reach the top spot in the corporate sector. At this event, the names of the 50 women on the list will be revealed. In addition, a panel of women from the list would tell the stories of their rise to the top of corporate Africa, and comment on Professor Mayo’s research by addressing what it takes to make it to the top in Africa, specifically. Another panel featuring heads of major African stock exchanges will discuss what stock exchanges are doing globally to push for more women in big business. The Africa.com Definitive List of Women CEOs is the product of a
data-driven research project that began by identifying all publicly listed companies on all of the 21 stock exchanges in Africa - a list of over 1400 companies. From there, the researchers screened the companies to focus on the largest companies — those with a market capitalisation of $150 million or larger, resulting in a list of 355 corporations. Once the researchers had identified these 355 companies, the largest in Africa, they then searched the public information available on the management teams of these companies. In order to qualify for the list, women must have a CEO or managing director title as the head of one of these companies. The titles are then vetted further by examining where the women fit within the company’s overall organisational structure to ensure that the women truly hold authority that is consistent with their title.
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FRIDAY OCTOBER 15, 2021
Young Investor Network launches Capital Market Quiz & Stock Pitch competitions
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oung Investor Network (YIN) in collaboration with the Ghana Stock Exchange (GSE), UMB Investment Holdings and Stockbrokers has launched the Capital Market Quiz and Stock Pitch competitions. The two events bring together students from various tertiary institutions and senior high schools to showcase their intellectual abilities with regards to the knowledge of the capital market. Young Investor Network (YIN) is a financial education organisation committed to educating the youth on financial literacy and business skills in Ghana and beyond and with investment programs designed to support a favourable business climate. The Executive Director of the Young Investors Network (YIN), Mr. Kofi B. Kyei, highlighted the need for such events and how it will boost youth participation in investment ventures. He said, “It has come to the realization of the Young Investors Network through our numerous educational trips across the country that the investment culture amongst students is on the low. In our numerous interactions we realize that students have
little or no knowledge about the capital market and investment opportunities in general. These programs are designed to encourage students to read and research about the activities of the capital market and develop the right savings and investment behaviour.” The Managing Director of the GSE, Mr. Ekow Afedzie said, “the
two competitions are a great initiative which will educate and inform the youth of the offerings of the Capital Market and how it can shape their future. The youth are the future of the market, and their participation is essential for its growth. The Young Investor Network initiative aligns with the GSE’s financial literacy plan and
there is the need to support such initiatives as it equips the youth with the necessary tools to understand and navigate through the market.” The two competitions will be rolled out in the coming weeks at the various campuses, and this is expected to support GSE’s efforts in building a savings and investment culture among the youth in Ghana.
Provide funds to accelerate hand hygiene -WaterAid Ghana to gov’t
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aterAid Ghana, an international non-governmental organization has urged the government to make financing available to accelerate hand hygiene for all. This was contained in a press statement to mark global handwashing day which revealed that globally, 2.3 billion people, almost one in three, lack soap and water for handwashing at home, in least developed countries however, nearly two thirds of people living in least developed countries lack soap and water for handwashing at home. The nature of the ongoing COVID-19 pandemic and the clarion call for hand hygiene as a key safety protocol against the spread of COVID-19 reechoes WaterAid Ghana’s long held position that hand hygiene is essential to better protect more people from Public Health Emergencies. Handwashing is key to reducing the burden of many
diseases which pose chronic challenges to population’s access to sustainable quality healthcare and development. In the last 18 months, the world has seen the importance of hand hygiene and the role it plays, with it being the “first-line” of defense in preventing outbreaks and reducing the toll of both current and future pandemics. The theme for this year’s
Global Handwashing Day, “Our Future is at Hand – Let’s Move Forward Together” aptly puts our future and life post COVID-19 in perspective. It is literally in our hands; Ghana and by extension the world, needs to embrace this pandemic as a turning point to address the historic neglect of hand hygiene investments, policies, and programs once and for all.”
The statement further called on government to support a 2022 World Health Assembly Association on Hand hygiene, commit to urgently increase investment in hand hygiene through: ringfenced budget allocation and/or resource mobilization plan for hand hygiene aligned with achievement of national hand hygiene plans. The statement also advocated the need to strengthen budget monitoring and tracking of hygiene/hand hygiene spending across sectors at national and subnational levels, accelerate scale up and accountability of hand hygiene through development and implementation of costed national hand hygiene plans. As an organisation, WaterAid Ghana believes that strengthening resilience of future pandemics and health threats will not be possible, especially for vulnerable communities, without addressing water, sanitation, and hygiene as crucial aspects of public health.
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FRIDAY OCTOBER 15, 2021
France commits € 130m to support 500 start-ups across Africa
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n Friday 8th October 2021 at the New AfricaFrance Summit, President Emmanuel Macron announced a renewed financial commitment of € 130 million for the next 3 years and defined Digital Africa’s new ambitions to support entrepreneurship and technological innovation on the continent. Present in Montpellier, the Digital Africa team unveiled new programmes. In terms of financing, the team announced the Fuzé project, that focuses on Francophone Africa and aims to support at least 200 tech startups as of early 2022 by launching a new small ticket fund (in stages, from € 10 000 to 200 000) taking the form of repayable loans. In terms of skills, Digital Africa joins forces with Make IT and the German government to set up Talent4StartUps, a fellowship programme designed to meet the needs of talents that have been trained in tech and digital, and whose beneficiaries will be put in touch with start-ups actively recruiting. More broadly, Digital Africa will continue to develop non-financial activities (knowledge production, training, networking, research, and support for the evolution of regulatory frameworks) while having the opportunity to raise
funds from other public or private donors. This will be enabled by its new status as a subsidiary of Proparco, which is the Agence Française de Développement (AFD)’s structure dedicated to the private sector. This ambitious change will give Digital Africa the opportunity to deploy direct seed financing capabilities for high potential start-ups across the continent. A strategic committee to better represent African innovation ecosystems as a unique organisation in the development support landscape, Digital Africa also aims to innovate on governance, with an approach that is both partnershipbased and rigorous.
The objective is to better reflect the diversity of African tech ecosystems, from a geographical perspective, by ensuring that all the major regions of the continent are represented, and from a skills perspective, by bringing together entrepreneurs but also investors, representatives from training and research organisations, incubators and innovation policy experts. A new strategic committee will soon be set up to guide Digital Africa's action and priorities. Several promising discussions have been happening with respected personalities who are being approached to join this committee. Digital Africa’s CEO Stéphan-
Eloise Gras said: "Digital Africa’s new organisation, redefined with our partners, allows us to reinforce our commitment to ‘made in Africa’ tech innovations and become a factory for future African unicorns. Startups need a ‘one-stop-shop’ combining training, research, project-structuring, support to pro-tech and pro-innovation reforms, and financing. From now on, thanks to the merger with Proparco, they will find in Digital Africa a partner capable of offering them support from ideation and seed to growth and hypergrowth. By putting tech at the service of transparency and efficiency in development aid, and by getting closer to the private sector, Digital Africa wants to make a longlasting difference!” The Digital Africa team is now preparing a roadshow that will take place at the end of this quarter and will stop in several African regions to strengthen connections with key partners and players in African ecosystems, promote the programmes and invite African start-ups to apply. These field trips will also be an opportunity to finalise new projects, including the 'productmarket fit academy' designed to improve the suitability of tech solutions for local markets, to be launched in 2022.
Ghana Navy averts pirate attack on fishing vessel Afko 805
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he Ghana Navy earlier this week successfully warded off pirates onboard two speed boats who suspiciously approached a Tuna vessel by name AFKO 805 operating 105 nautical miles south of Aflao. The operation ended without any casualty to the vessel and its crew as the vessel continues to be engaged in its lawful fishing activities. Ghana Navy in recent times has doubled its patrols at sea to curb the numerous piracy attacks in the Gulf of Guinea making our Exclusive Economic Zone one of the safest in the Region. “The piracy situation in the Gulf of Guinea has created a sense of insecurity in the Region. In Ghana, the Navy has strived to maintain adequate security at sea to enable a conducive maritime environment for national development.
Fishing vessels have often fallen prey to pirates within the Region,” said a statement signed by Commander Andy La-Anyane, Acting Director Public Relations. The Chief of the Naval Staff recently visited his counterparts in Nigeria, Benin and Togo as a way of seeking their cooperation to combat the regional menace. Additionally, the Ghana Navy in its quest to curb this menace, has deployed armed naval personnel onboard fishing vessels in consultation with stakeholders in the industry all aimed at ensuring a safe and secured maritime environment for the smooth operations of fishing and commercial vessels. The Navy has assured all vessels and their operators within the nation’s maritime domain of its eagerness to protect all those engaged in legal businesses and also accost all those engaged in
illegalities. “The Navy therefore seeks the cooperation of all partners to enable the nation to achieve
a safe maritime environment for national development,” the statement further noted.
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Together for greater harmony between man and nature By Yi Fan
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hang Xueliang, a ranger at Xiling Snow Mountain (which is a giant panda habitat some 110 kilometers from Chengdu, capital of China’s southwest province of Sichuan), returned home after a routine patrol. He looked through the photos of wild giant pandas captured on infrared cameras: one strolling near a hydro-power station, one frolicking on a tree, and another digging bamboo shoots in a villager’s land ... The snapshots of the loving creatures are most saying that the population of wild giant pandas is growing and their habitat is expanding. The International Union for Conservation of Nature (IUCN) now lists giant panda as a “vulnerable” instead of “endangered” species. These are just a few examples that illustrate what China has achieved in biodiversity conservation. As Chinese President Xi Jinping has said, humanity and nature are a community of life. Biodiversity is essential for human beings to survive and thrive. The scale of global extinction of species, the rate of loss of biodiversity, and the scope of degradation of the ecosystem make it imperative for us to reflect and react. China is a significant participant, a major contributor, and a leading nation of global biodiversity governance and has taken results-oriented measures to implement the Convention on Biological Diversity, the United Nations Framework Convention on Climate Change and its Paris Agreement. Upholding these international instruments, China has presented the world with an impressive scorecard on global biodiversity governance. A top-down design President Xi’s thinking on ecoenvironmental sustainability and conservation is an integral part of his Thought on Socialism with Chinese Characteristics for a New Era. His vision guides the nation’s biodiversity endeavors. China’s national policy on ecoenvironmental sustainability and conservation has been built on, among others, the ancient
Chinese philosophy of “unity of nature and man” and “Man must follow nature’s course.” The idea of eco-environmental sustainability and conservation has been written into the Constitution of China and embedded as a priority in the country’s national plan for highquality development. China strives for a modernization that champions harmony between humanity and nature. “Green is gold”, President Xi’s saying, has become the consensus of the Chinese. A systemic approach China has developed an integrated system of biodiversity governance. --China adopted the National Biodiversity Conservation Strategy and Action Plan (20112030) in 2010. The action plan makes it clear that biodiversity conservation is a major indicator in the country’s overall planning for economic and social development. --Under the action plan, relevant laws and regulations have been enacted or updated, providing a solid legal basis for biodiversity conservation. --Under the action plan, projects for ecological protection and restoration have been launched. They are designed to restore wetlands and forests, protect rivers and lakes, and control desertification. Thanks to these undertakings, China has come a long way in eco-environmental sustainability and conservation. --China has been the world’s top nation for increase in forest resources for the past 10 years, with a total of over 70 million hectares of land afforested. --China has introduced a red line system for ecological protection. Following its setting of the red line for arable land of no less than 1.8 billion mu (120 million hectares), the Chinese
government has set a red line for ecological conservation. --China has established a system of protected areas with national parks being the main component. This is a practical step to improve in-situ and ex-situ conservation. The 11,800 protected areas account for more than 18 percent of China’s land mass. Such percentage well exceeds the target set in the Convention on Biological Diversity (CBD). --China has built up its capacity for biodiversity conservation, improved its data monitoring, research and collation, and established a national biodiversity monitoring and research network. --China has stepped up its oversight and investigation of illegal activities through satellite remote sensing and targeted campaigns. These measures have made the supervision and regulation of biodiversity conservation more efficient and effective. Upholding multilateralism and building synergy Human well-being and the ecological environment are inseparable. The protection of our ecological environment and biodiversity will not succeed without international cooperation. As one of the first countries to sign and ratify the CBD, China is a staunch advocate of multilateralism and actively promotes international cooperation on biodiversity conservation. Crested ibis, a bird native to eastern Asia, was once thought extinct until China’s discovery of the last seven wild crested ibises in 1981. China has since signed documents on the protection and conservation of crested ibises with Japan and the Republic of Korea successively. Thanks to the three countries’ joint efforts, the population of
crested ibises has rebounded to over 7,000. In 2018, China and countries along the Belt and Road launched the Global Biodiversity and Health Big Data (BHBD) Alliance with the aim of promoting biodiversity and health big data sharing in the world and using database networks to help improve biodiversity. China is the host of the 15th Conference of the Parties (COP15) to the Convention on Biological Diversity to be held from 11 to 15 October. The conference offers a good opportunity for world leaders to explore new strategies on global biodiversity governance. Themed “Ecological Civilization – Building a Shared Future for All Life on Earth”, the COP15 will be the UN’s first global meeting focused on ecological civilization. Its theme embodies the world’s aspiration for greater harmony between man and nature. The meeting is of great significance for promoting the vision of ecological civilization. The second segment of COP15 is scheduled to be held next year when the delegates will consider and adopt a Post-2020 Global Biodiversity Framework (GBF). The GBF will be a milestone in the CBD history as it is a plan of strategic importance for global biodiversity governance for the next decade and beyond. As the host of COP15, China is willing to share with all parties to CBD its experience and best practices in global biodiversity governance and ecological conservation. China will work closely with other parties to explore how best we can promote greater progress in biodiversity conservation and contribute to global biodiversity and sustainable development. As a Chinese saying goes, “People with one mind and heart have the power to move a mountain.” When it comes to biodiversity conservation, we still have a long way to go. That said, I do believe if all countries work together to expand common ground and build synergies for better global biodiversity governance, there will be greater harmony between man and nature. The author is an expert on international studies.
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New ECA initiative supports city GDP measurement in Africa
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new initiative by the United Nations Economic Commission for Africa (ECA) is supporting African cities to measure their gross domestic product (GDP) – a vital economic well-being indicator. Findings from the pilot initiative for the first time show that between 2015 and 2020 Harare accounted for an average of 38 per cent of Zimbabwe’s GDP, while Accra and Yaoundé’s contributions in Ghana and Cameroon were 36 per cent and 15.7 per cent respectively. The GDP estimates will enable a more accurate understanding of the economic weight and performance of cities as well as the design of tailored measures to unlock their full potential. The figures will further help identify priority policy interventions to attract investors, improve competitiveness and strengthen productive economic sectors in cities. New regional technical working group Presenting the initiative to the
inaugural meeting of a regional technical working group, Ms. Edlam Yemeru, ECA’s Director for the Gender, Poverty and Social Policy Division said: “City GDP, despite its immense contribution to national economies, has hardly been measured in Africa consistently to inform policy targeting and investment decisions.” She added: “Working with partners, ECA aims to ensure city GDP estimations are conducted regularly across the region as a means of accessing and harnessing the economic potential and performance of African cities. The establishment of the regional technical working
group is of crucial significance in realizing these aspirations.” The regional technical working group is comprised of experts from various organizations, including the UN-Habitat, the African Union, the United Cities and Local Governments of Africa (UCLG-Africa), the Sahel and West Africa Club of the Organisation for Economic Co-operation and Development, the United Nations Capital Development Fund, the World Resources Institute, the Cities Alliance, the Gauteng CityRegion Observatory and the Islamic Development Bank. Group’s mandate
The technical working group members will meet regularly to advise on a regional guideline on city GDP estimation in Africa and a roadmap to institutionalize the practice, while exchanging ideas, solutions and findings at the local, national and continental levels. The regional guideline, in particular, will be used as a main capacity-building tool to support more African cities in conducting their GDP estimates. The initiative - part of a wider ECA effort to support city-level disaggregation of statistics in Africa – will soon be extended to cover Kigali, Lusaka and Lesotho.
GIPC talks up Ghana at Expo 2020 Dubai By Eugene Davis ugendavis@gmail.com
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he CEO of the Ghana Investment Promotion Centre (GIPC), Yofi Grant, has asked businesses and investors in the United Arab Emirates (UAE) that are seeking new partnerships to consider Ghana as a “strategic market”. Speaking at an MoU signing ceremony at Expo 2020 Dubai in the Gulf state on Thursday, Mr. Grant indicated that the government of Ghana wants Dubai-based companies to take advantage of the African Continental Free Trade Area (AfCFTA). “If you come to Ghana and you are exporting to the continent, it is tariff-free due to the AfCFTA. We in Ghana have [also] taken it upon ourselves to ensure that happens in a seamless way,” he said. The GIPC boss told investors that Ghana is a gateway for UAE companies to enter attractive
African markets, with both countries already maintaining good economic relations, especially since the opening of the office of the Dubai Chamber of Commerce in Accra in 2015. He added that Ghana will take advantage of this year’s Expo to rekindle investments
into its economy to assist in the restoration of economic growth as the country recovers from the pandemic. “We are not only here for trade; we are here to embrace each other’s cultures [and] way of life.” Yaw Osafo-Maafo, Senior Presidential Advisor, urged the
GIPC to deepen the relations between the two countries by “selling Ghana and marketing AfCFTA”. Mr. Yaw Kwakwa, Managing Director, Ghana Airports Company Limited, said it is the vision of government to make Ghana an aviation hub, and the country is thus seeking partnerships across the world. Mr. Mohsen Ahmad, CEO, Dubai South Logistics District, stated that the two countries have the same objectives of strengthening trade ties, adding that the signing of the MoU aims to create an attractive environment for SMEs, bilateral trade and investments. “I hope this event ignites new ideas, [and] we look forward to even more Ghanaian companies to facilitate investments from Dubai to Ghana.” Expo 2020 Dubai is a global platform to attract investments, forge agreements and promote international cooperation, with close to 192 countries participating.
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MIIF announces new board as Prof Boateng chairs the over US$200m fund
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he Ministry of Finance has inaugurated a new board for the Mineral Income Investment Fund (MIIF) in Accra. Professor Douglas Boateng was appointed as the Chairperson of the board. Finance Minister, Ken OforiAtta, who welcomed the new board and chair said: “Your role is to ensure that Ghana’s mineral and metals income are maximised for the long-term benefit of Ghana for Ghanaians” Globally renowned for his contribution towards procurement, governance, logistics, and industrial engineering in the context of supply and value chain management and industrialisation, Professor Boateng has played leading academic, board level and C-suite roles in amongst others exploration and mining in Africa and across the globe. Speaking at the inauguration event, Prof Boateng expressed his enthusiasm for his new role. “I am highly honoured to be given the opportunity by President Nana Akufo-Addo with the blessing of the Minister for Finance, other government officials, and stakeholders to perform my patriotic duty as the chairman of the Minerals Income and Investment Fund,” he said. “I am looking forward to constructively guiding and coaching the Managing Director, Mr Yaw Koranteng, and working
together with my fellow board members to help further advance the goals of the Fund plus play my part in transforming the sector through adequate governancedriven supervision, value-driven partnerships, and alliances”. He further said that as board of directors, they were “without question, fully committed to the Companies ACT 2019 (ACT 992), which provides guidelines for protecting and building shareholder value”. We shall use our duly authorised supervisory time to guide MIIF to legitimately create long-term wealth for Ghana and Ghanaians and look forward to possibly collaborating with other African countries to achieve the objectives,” he added According to the Minerals Income Investment Fund Act, 2018 (ACT 978), the objectives of the Fund are to: (a) maximise the value of the income due the
Republic from the mineral wealth of the country for the benefit of its citizens; (b) monetise the minerals income accruing to the Republic in a beneficial, responsible, transparent, accountable and sustainable manner; and (c) develop and implement measures to reduce the budgetary exposure of the Republic to minerals income fluctuations. As part of his commitment to the realisation of the Funds objectives, Boateng noted the need to advance the role of women and Ghanaians in the sector. “We need to focus much needed attention on the championing of women in mining and exploration in the country to help foster greater opportunities for women-led projects as well as the implementation of meaningful women-centred social responsibility initiatives within the exploration and mining sector,” he said.
In his address he explained the importance of the Fund for Ghana and its people: “the monetisation of our natural resources and minerals is essential to the realisation of the country’s long-term developmental goals. It is crucial that the natural and mineral wealth of Ghana contributes to the lives and wealth of its own people.” “Royalties collected to date from mining companies is in excess of $200 million USD annually.” “Based on sectorial experience and purposive research, Ghana can increase this annual income by at least four times to over 1 BILLION within six years. However, these quantifiable gains can only be achieved by employing the right human capital supported by the right processes, systems, visionary leadership and guidance, value-driven support from the government, sectorial investments, carefully selected strategic partnerships, ventures, and alliances,” he concluded. His appointment as MIIF chair follows his recent position as chairman of the Public Procurement Authority. He successfully oversaw the implementation of GHANEPS (Ghana Electronic Procurement System) – an online collaborative public procurement system developed to facilitate, minimise and discourage procurement related malpractices in Ghana.
FAO, WFP and EU discuss heading off food crises before they strike
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cting before disasters strike is more efficient and helps save both lives and money, officials from the United Nations food agencies and the European Union said during a virtual meeting today designed to boost the role of anticipatory action as an urgently needed solution to food crises. The Brussels Dialogue “From reaction to prevention: anticipatory action against food crises” – brought together the heads of the Food and Agriculture Organization (FAO), the World Food Programme (WFP), and the European Union’s Humanitarian Aid operations. The high-level session was followed by panel discussions featuring partners’ experience at field level and the sharing of lessons learned. Building on the outcomes of the high level event on
anticipatory action convened by the UN Secretary-General, and the UN Food Systems Summit, the initiative reiterates the engagement of the founding members of The Global Network Against Food Crises, an alliance of humanitarian and development actors who seek to tackle the root causes of food crises and promote sustainable solutions. After decades of decline, the number of people facing hunger has started rising again. Today there are 155 million people who are suffering from acute hunger and whose lives and livelihoods are at risk because they lack food. A further 41 million people risk falling into famine or famine-like conditions. “These trends are showing us that our traditional, reactive approaches no longer fit our new reality,” said FAO Director-
General QU Dongyu. We know that many food crises are preventable because they are recurring, Qu said. “And we know that investing in early warning systems pays off not just for communities, but also for governments.” The COVID-19 pandemic has added to existing threats like pests, plagues, conflict and climate change, compounding the global food crisis and adding to a sense of urgency. At the same time, advances in technology and data collection have greatly improved experts’
ability to analyse risks and anticipate many disasters before they strike, making the shift from reaction to prevention an essential move forward, particularly during times of financial constraint. “Food assistance needs are rising faster than the funding made available, making the current aid paradigm unsustainable in the longer-term,” said Janez Lenarcic, the EU Commissioner for Crisis Management. “We need to start acting on the risks of future food crises.”
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FRIDAY OCTOBER 15, 2021
Post-pandemic recovery must include the care economy
Mercedes D'alessandro, Maria S. Floro
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he COVID-19 pandemic may have slowed the global economy in 2020, but the “care economy” was working harder than ever. For too long, economists and policymakers have ignored this segment. Economic models account for the goods and services sold in the market and the workers who produce them, earn income, and pay taxes. But the labor that enables those workers to be fed, cared for as children, and supported when sick is nearly invisible in official data. The reason is simple: much of the work in the care economy is not financially compensated. Unpaid work is not included in the System of National Accounts or gross domestic product. The economists who crafted these metrics focused mainly on the value of market transactions. This perspective, which ignores unpaid contributions, has long been institutionalized in conventional economic analysis. The pandemic has made its shortcomings impossible to ignore any longer. Efforts to remedy society’s undervaluation of care work have been underway since the 1990s. The collection of time-use data
in over 90 countries around the world has helped us learn more about unpaid labor, which is primarily done by women. While this valuable information can be used to evaluate a wide range of fiscal, labor, and social policies, time-use data are underused in planning and analysis. The care sector for the most part remains unaccounted for in standard policy tools. But there are some exceptions. Late last year, Argentina’s Ministry of Economy reported that unpaid care and domestic work amounts to 15.9% of GDP, making it the economy’s largest sector, followed by industry (13.2%), and commerce (13%). If the vast number of domestic tasks carried out in Argentine homes every day were compensated, the sector would contribute $67.4 billion to the country’s GDP. Unsurprisingly, the ministry found that 75.7% of the tasks are carried out by women, who perform about 96 million hours of unpaid household and care work per day. The ministry also analyzes how the sector’s economic importance grew during the pandemic. During the country’s lockdown, the care economy played an essential role in sustaining society. While activity plummeted in many economic sectors, the amount
of care work increased by 5.9%, accounting for the equivalent of 21.8% of GDP. Working parents, especially mothers, were often forced to give up paid jobs to care for children or sick relatives. But the pandemic merely exposed the tip of the iceberg of the “care crisis.” South Korea shows what can happen when policymakers fail to give the care economy its due. Although the government has invested in childcare and long-term care services over the past few decades, spending remains inadequate and policies are heavily reliant on the private sector, where workers are poorly paid. In the absence of effective infrastructure for quality and affordable childcare and eldercare, women spend many hours caring for others. And they are not having children. South Korea has the world’s lowest birthrate – just 0.84 per woman. In the United States, there are two models of public investment in care that are worth examining. Support for childcare for working families and universal preschool for three- and four-year-olds has been included in the proposed ten-year, $3.5 trillion budget plan working its way through Congress – part of a $726 billion long-term investment in social infrastructure. While this is a
step in the right direction, a reliable and affordable care system for working families must be accompanied by highquality and well-paid jobs in the sector. Increased funding will not alter structural labor-market problems. A more holistic approach can be found in Oregon’s Multnomah County, which includes the city of Portland. The county is implementing a care initiative called Preschool for All in which a tax on top-income earners will pay for universal early childhood education for three- and fouryear-olds. It also will raise wages for care providers in an effort to reduce high turnover in the field and promote quality caregiving. As part of its post-pandemic recovery, Argentina’s government has a mandate to address gender inequalities through a new model of fiscal policies. Its effort to account for the role of care in the overall economy should be a beacon for the rest of the world. As the old adage has it, what gets measured gets managed. Devising ways to include the labor of unpaid care workers in economic indicators, models, and policies is essential to addressing an evolving crisis that, as the pandemic has made plain, affects not only women, but society as a whole.
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FRIDAY OCTOBER 15, 2021
Dubai South signs MoU with GIPC at Expo 2020 Dubai to accelerate economic ties
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ubai South, the largest single-urban master development focusing on aviation, logistics and real estate has signed a memorandum of understanding with Ghana Investment Promotion Center (GIPC), the foremost investment attraction and promotion agency under the presidential office of Ghana, to promote all-round economic cooperation, bilateral trade and investment. The agreement, which was signed at the Abu Dhabi Hall, Business Connect Centre, Expo 2020 Dubai, by Mohsen Ahmad, CEO of Dubai South, Logistics District and Yofi Grant, CEO of GPIC, was also attended by Khalifa Al Zaffin - Executive Chairman Dubai Aviation City Corporation. At a brief launch on the expo grounds in Dubai, some of the high-Level representative and speaker attended the event namely: Yaw Osafo-Maafo - Senior Presidential Advisor, Office of the President, Alhaji Ahmed Ramadan - Ambassador of the Republic of Ghana to the UAE, Yofi Grant, CEO of Ghana Investment Promotion Centre, and other senior officials. Through this agreement, the two parties aim to create an attractive environment for SMEs and encourage the exchange of trade missions with all-rounded preparation, including assistance with business programs, facilitating corporate networks
and information exchange between the two authorities. It’s worth noting that EZDubai, the e-commerce zone strategically located at the heart of Dubai South Logistics District, represented the UAE in various Africa-UAE business events to promote the Emirates’ latest innovations, technical advancements as well as optimal service solutions leading the region’s e-commerce industry. Mohsen Ahmad, CEO of Dubai South Logistics District, said: “It gives us immense pleasure to ink a bilateral agreement with GPIC to promote a lucrative environment for SMEs to prosper and strengthen economic ties. Our leadership have chalked an effective, long-term strategic road map for us and it is our time
as industry leaders, to lay the foundation for both communities to achieve optimal results. The agreement comes on the heels of the mega event, Expo 2020 Dubai, which seeks to pave the way for resilient global economy and enable robust business connectivity.” Yofi Grant, CEO of Ghana Investment Promotion Centre (GIPC), also asserted that the Expo presents a wonderful opportunity to outdoor Ghana’s numerous opportunities to investors around the world. He also said: “The country’s participation in the Expo will promote government’s priority sectors, comprising; housing and construction, manufacturing, technology and digital economy, tourism and creative arts, agric
and agro-processing, as well as health”. Ghana, has officially become the "Commercial and Trade Hub of Africa, as it hosts the Secretariat of the African Continental Free Trade Area - hailed as the world's largest free trade bloc. The country ranks among the top in West Africa for ease of doing business, offering investors a conducive business environment bolstered by solid economic fundamentals, dynamic policies, and political stability.” According to the UNDP, the country has made significant progress in poverty reduction and thus becoming the first country in Sub-Saharan Africa to achieve the Millennium Development Goal 1, which is the ambitious target of halving extreme poverty. Today, Ghana is not only one of the best places for doing business in West Africa, but also the most resilient economy in West Africa according to the EY African Attractiveness index. Dubai South was launched as a Dubai Government project in 2006, representing an emerging 145 square-kilometre, masterplanned city based on the happiness of the individual. The city is identified as Dubai’s flagship urban project and is designed to create 500,000 jobs in an integrated, economic environment that supports all types of businesses and industries.
You can now buy motor insurance on WhatsApp— Imperial General Assurance MD
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he Managing Director of Imperial General Assurance, Robert Wugah, has disclosed that owners of vehicles can now buy motor insurance from his company on WhatsApp- a cross platform mobile messaging app for smart phones. He said the company’s latest technological innovation called ImperialHub, will help bring insurance to the doorsteps of people across Ghana and also significantly improve their time and cost of policy processing. “With ImperialHub, your insurance policy can be done within five (5) minutes anywhere, anytime and any day. You are only required to provide some basic information about yourself and
your vehicle, pay your premium with MoMo and get covered. It is a quick, convenient and secure platform.”, he said. “The customer is only required to send “Hello” to 0577667436 on WhatsApp and will be provided with an option to follow a prompt to either buy or renew his Comprehensive, Third Party and Third Party Fire and Theft Motor Insurance policy. ImperialHub assists our customers to report claims in real time. It also gives them the option of directly contacting any of our ready-to-serve customer service staff to swiftly respond to their business enquiries,” he added. Mr. Wugah said ImperialHub was carefully and specially developed with the insurance
needs of customers, particularly vehicle owners, in mind and it is the go-to center for quick and seamless insurance business transactions on WhatsApp in Ghana. The Imperial General Assurance MD assured customers of the company’s commitment to
continuously invest in latest and relevant technology to address their insurance needs and to also give them the best customer service experience. Imperial General Assurance is a wholly-owned Ghanaian insurance company which provides non-life insurance solutions in Ghana.
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Feature
FRIDAY OCTOBER 15, 2021
A new global economic consensus
he Washington Consensus is on its way out. In a report released this week, the G7 Economic Resilience Panel (where I represent Italy) demands a radically different relationship between the public and private sectors to create a sustainable, equitable, and resilient economy. When G20 leaders gather on October 30-31 to discuss how to “overcome the great challenges of today” – including the pandemic, climate change, rising inequality, and economic fragility – they must avoid falling back on the outdated assumptions that landed us in our current mess. The Washington Consensus defined the rules of the game for the global economy for almost a half-century. The term came into vogue in 1989 – the year that Western-style capitalism consolidated its global reach – to describe the battery of fiscal, tax, and trade policies being promoted by the International Monetary Fund and the World Bank. It became a catchphrase for neoliberal globalization, and thus came under fire – even from its core institutions’ leading lights – for exacerbating inequalities and perpetuating the Global South’s subordination to the North. Having narrowly avoided a global economic collapse twice – first in 2008 and then in 2020, when the coronavirus crisis nearly brought down the financial system – the world now confronts a future of unprecedented risk, uncertainty, turmoil, and climate breakdown. World leaders have a simple choice: continue supporting a failed economic system, or jettison the Washington Consensus for a new international social contract. The alternative is the recently proposed “Cornwall Consensus.” Whereas the Washington Consensus minimized the state’s role in the economy and pushed an aggressive free-market agenda of deregulation, privatization, and trade liberalization, the Cornwall Consensus (reflecting commitments voiced at the G7 summit in Cornwall last June) would invert these imperatives. By revitalizing the state’s economic role, it would allow us to pursue societal goals, build international solidarity, and reform global governance in the interest of the common good. This means that grants and investments from state and multilateral organizations would require recipients to pursue rapid decarbonization (rather than rapid market liberalization,
as required by IMF lending for structural adjustment programs). It means that governments would pivot from repairing – intervening only after the damage is done – to preparing: taking steps in advance to protect us from future risks and shocks. The Cornwall Consensus also would have us move from reactively fixing market failures to proactively shaping and making the kinds of markets we need to nurture in a green economy. It would have us replace redistribution with predistribution. The state would coordinate mission-oriented public-private partnerships aimed at creating a resilient, sustainable, and equitable economy. Why is a new consensus needed? The most obvious answer is that the old model is no longer producing widely distributed benefits – if it ever did. It has proven to be disastrously incapable of responding effectively to massive economic, ecological, and epidemiological shocks. Achieving the United Nations Sustainable Development Goals, adopted in 2015, was always going to be difficult under the prevailing global governance arrangements. But now, in the wake of a pandemic that pushed state and market capacities beyond the breaking point, the task has become impossible. Today’s crisis conditions make a new global consensus essential for humanity’s survival on this planet. We are on the cusp of a longoverdue paradigm shift. But this progress could easily be reversed. Most economic institutions are still governed by outdated rules that render them unable to marshal the responses needed to end the
pandemic, let alone achieve the Paris climate agreement’s goal of limiting global warming to 1.5° Celsius, relative to pre-industrial levels. Our report highlights the urgent need to strengthen the global economy’s resilience against future risks and shocks, whether acute (such as pandemics) or chronic (like extreme wealth and income polarization). We argue for a radical reorientation in how we think about economic development – moving from measuring growth in terms of GDP, GVA (gross value added), or financial returns to assessing success on the basis of whether we achieve ambitious common goals. Three of the report’s most salient recommendations concern COVID-19, the postpandemic economic recovery, and climate breakdown. First, we call on the G7 to ensure vaccine equity globally, and to invest substantially in pandemic preparedness and missionoriented health financing. We must make equitable access, particularly to innovations that benefit from large public investments and advance purchase commitments, a top priority. We recognize that this will require a new approach to governing intellectual-property rights. Similarly, the World Health Organization’s Council on the Economics of Health for All (which I chair) stresses that IP governance should be reformed to recognize that knowledge is the result of a collective valuecreation process. Second, we argue for increased state investment in the postpandemic economic recovery, and we endorse the recommendation
by the economist Nicholas Stern that this spending be increased to 2% of GDP per year, thereby raising $1 trillion annually from now until 2030. But marshaling more money is not enough; how that money is spent is equally important. Public investment must be channeled through new contractual and institutional mechanisms that measure and incentivize the creation of longterm public value rather than short-term private profit. And in response to the biggest challenge of all – the climate crisis – we call for a “CERN for climate technology.” Inspired by the European Organization for Nuclear Research, a missionoriented research center focused on decarbonizing the economy would pool public and private investment into ambitious projects, including removing carbon dioxide from the atmosphere and creating zero-carbon solutions for “hard-to-abate” industries like shipping, aviation, steel, and cement. This new multilateral and interdisciplinary institution would act as a catalyst for making and shaping new markets in renewable energy and circular production. These are just three of seven recommendations we have made for the years ahead. Together, they provide the scaffolding for building a new global consensus – a policy agenda for governing the new economic paradigm that already is beginning to take shape. Mariana Mazzucato, Professor in the Economics of Innovation and Public Value at University College London, is Founding Director of the UCL Institute for Innovation and Public Purpose.
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Akufo-Addo calls for election to ECOWAS Parliament by universal suffrage By Eugene Davis ugendavis@gmail.com
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he chairperson of the Economic Community of West African States (ECOWAS), President AkufoAddo, has called for members of the ECOWAS Parliament to be elected by universal adult suffrage to consolidate full democracy in the region. Addressing the opening ceremony of an ECOWAS Parliament meeting at Winneba, in the Central Region, the President said such a move will give the regional legislative body democratic legitimacy and lead the bloc towards becoming truly an ECOWAS of Peoples. “Achieving that feat will mark an important milestone in the quest for full democracy in the region. It will also enable Parliament function with the needed autonomy, stability and predictability. It will afford ECOWAS the opportunity to harmonise past and present community legislation in a fastchanging era of globalisation and digitalisation of technology and
telecommunications, and create a proper synergy between the Parliament, the Commission, and other community institutions,” he said. The Speaker of the ECOWAS Parliament, Dr. Sidie Mohammed Tunis, urged the bloc to carry out an objective assessment of the electoral systems in member states in order to identify challenges and put forward proposals for possible solutions to shortcomings observed in the organisation of elections. He also charged members to give serious attention to the new phenomenon of constitutional amendments that take place before an election or before the
expiration of the tenure of an incumbent president. “Amending a constitution to conform to current realities is not in itself a problem. However, when the proposed amendments to the Constitution protect the governing elite at the expense of citizens, or undermine the very nature of constitutional democracy, thereby granting the incumbent undue advantage to extend his mandate, then we have a problem,” he said. “The truth is, this practice is eroding the gains we have made as a community, sinking the region into more chaos and creating a serious reputational risk for ECOWAS as an institution.
If we do not take firm and very decisive actions against this ugly trend, ECOWAS will not only be perceived as a body of failed states, but will indeed fail,” he added. The chairperson of the Electoral Commission of Ghana, Jean Mensa, touted the 2020 general election as historic, transparent, efficient and cost-effective. According to her, the fact that the comparative cost of the election was reduced by 41 percent, equivalent to US$90m, with a voting turnaround time of between 10 and 12 minutes, makes the election exemplary within the West African sub-region. Speaking at a major forum for the first time since the 2020 election petition, Mrs. Mensa however expressed regret about the loss of seven lives in the election. The high-level ECOWAS parliamentary seminar is on the theme “Two Decades of Democratic Elections in ECOWAS Member States: Achievements, Challenges, and the Way Forward.”
Employment Min. tells YEA board more efforts needed to reduce unemployment By Eugene Davis ugendavis@gmail.com
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he Minister of Employment and Labour Relations, Ignatius Baffour Awuah, has charged the newly constituted Youth Employment Agency (YEA) board to work strenuously to reduce the 4.5 percent unemployment rate in the country. Speaking at the inauguration of a nine-member governing board of the YEA in Accra on Wednesday, he tasked them to come up with sustainable programmes to address the needs of the teeming unemployed youth. The Minister drew the new board’s attention to laudable programmes yet to be implemented by the agency, such as the Work Abroad Project and the Artisans Directory, and exhorted
them to act expeditiously to roll them out. Touching on YEA’s Job Centre initiative, he advised the board to ensure it was decentralised to enable other regions benefit from the concept. On the Regional Flagship Projects, he tasked the board to take the necessary steps to ensure each region has a sustainable flagship project to provide regular income to the youth. The board has Mrs. Anita Kusi Boateng, a nominee of the President, as the chairperson. The other members include Bright Wireko Brobbey, Deputy Minister of Employment and Labour Relations, as the representative of the Ministry; Martin Adjei Mensah Korsah, Deputy Minister of Local Government and Rural Development, as the
representative of the Local Government Ministry; and Justin Kodua Frimpong, the CEO of YEA, representing the agency. Others are Pius Enam Hadzide, Chief Executive Officer of the National Youth Authority, as the representative of the Youth Authority; Vincent Ekow Assafuah Jnr., MP for Tafo Pankrono and a
Human Resource Practitioner; Eugene Narh Korletey, the Chief Labour Officer, as a representative of the Labour Department; Dr. Eric Yeboah, a representative of the private sector; and Lawrencia Ahema Adams, also a representative of the private sector.