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FRIDAY SEPTEMBER 17, 2021
BUSINESS24.COM.GH
Friday September 17, 2021
NO. B24 / 249 | News for Business Leaders
GUBA premieres 2021 awards in Ghana
Canadian chamber schools businesses on digital payment systems
See page 8
See page 10
Ghana’s bauxite refinery ambition gets boost E fforts to develop Ghana’s Integrated Aluminium Industry (IAI) have received a major boost following the successful selection of a strategic partner to help the Ghana Integrated Aluminium Development Corporation (GIADEC) develop one of four projects being executed in the IAI value chain. President Akufo-Addo, who witnessed the signing of the agreement between the two parties at an event in Accra this week, noted that the IAI remains an integral part of the government’s industrialisation agenda. The President stressed that the government will ensure
By Eugene Davis ugendavis@gmail.com
T responsible and sustainable implementation of the IAI, which will involve mining, refining and smelting. “We believe that mining can be and must be done in a responsible
Tax exemptions bill to be submitted to Parliament before year ends By Eugene Davis ugendavis@gmail.com
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he much-touted tax exemptions bill is expected to be brought to Parliament before the turn of the year, a Deputy Minister of Finance and Economic Planning, Abena Osei Asare, has revealed. Concerns over the delayed passage of the bill have become
Expert advocates roadmap to tackle cybersecurity threats
Abena Osei Asare
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manner. Government through its regulatory agencies will act to protect our environment at all times,” he said. Cont’d on page 2
he founder of Ghana’s Silicon Valley and an innovator of fibre optics technologies, Dr. Thomas Owusu Mensah, has called for a roadmap in the country’s cyber space to address the emerging challenges in cybersecurity. “In a highly complex situation we need to come terms to design a new roadmap to tackle these issues,” said the GhanaianCont’d on page 3
UBA records 33% profit growth, declares interim dividend
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frica’s leading financial institution, United Bank for Africa (UBA) Plc, has announced its audited 2021 half-year financial results, showing impressive growth across all major income lines and performance indicators. The pan-African financial institution delivered a 33.4 percent appreciation in profit before tax, which rose to US$185.5m as at June 2021, up from US$139.1m recorded in the same period of 2020 and translating into an annualised
return on average equity of 17.5 percent as against 14.4 percent a year earlier. This feat was recorded despite the challenging business and economic environment that emerged from the slow pace of activities following the global lockdown occasioned by the COVID-19 pandemic. The results filed with the Nigerian Stock Exchange showed that the group’s profit after tax stood at US$147.5m, See page 5
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Editorial / News
FRIDAY SEPTEMBER 17, 2021
Editorial
Fast-track passage of tax exemptions bill!
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hana’s appetite for foreign direct inflows has seen it package a variety of enticing tax relief packages to potential investors seeking to do business in the country but at a huge loss to the economy. Tax exemptions are tax waivers given to local and foreign companies to encourage increased investment and more foreign direct investments (FDIs) in the economy. The investment-courting gesture costs the state some billions of dollars annually. Using provisional 2020 GDP figure of GH¢383.3bn, the gesture robbed the economy between GH¢11.5bn and GH¢19.2bn. For 2021, when GDP is
projected to rise to GH¢433.8bn, the IMF estimates presuppose that between GH¢13bn and GH¢21.7bn will be lost to tax exemption. Some financial analysts have also argued that although tax waivers is one of the strategic tools to attract investments into the country, in all cases, they constituted loss of government revenues and must, therefore, be used effectively. It is interesting how a nation in dire need for domestic revenue keeps giving out so much in incentives and tax holidays to foreign investors. Even more worrying is the notion that Ghanaian investors, who create the needed jobs and
wealth, and whose revenues and profits are mostly consumed within the country, do not get to enjoy some of these juicy packages. It is high time we relooked our tax exemption policies to realign them to the revenue aspirations of the nation. Much of the monies that is lost to this particular deed could be used to finance majority of infrastructural projects and to push national development initiatives. We therefore urge parties working on the new tax exemption regulation to speed up its passage.
Ghana’s bauxite refinery ambition gets boost Continued from cover
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The President, who also launched GIADEC’s fourproject agenda for the Integrated Aluminium Industry, commended the corporation for working assiduously to select Rocksure International as its partner after a transparent, competitive and rigorous investor engagement process, adding that the government will continue to create the enabling environment needed to attract more investors to venture into the industry. President Akufo-Addo was particularly excited that Rocksure International is a whollyowned Ghanaian company and stressed that the decision further demonstrates his commitment to the promotion of local content and local participation. The Minister of Lands and Natural Resources, Samuel Abu Jinapor, speaking at the event, pledged the support of the ministry in ensuring that the government’s vision of a fully operational and globally competitive IAI is realised. The Chief Executive Officer of GIADEC, Michael Ansah, on his part emphasised that the agreement will culminate in a joint-venture partnership between GIADEC and Rocksure
International to build a mine at Nyinahin-Mpasaaso and a refinery solution. The project, also referred to as Project 2, is one of the four projects GIADEC is currently executing, he said. The others are the expansion of the existing mine at Awaso and building of a refinery (Project 1); the development of a mine at Kyebi, a second mine at Nyinahin-Mpasaaso and building of a refinery (Project 3); and the modernisation and expansion of the VALCO smelter (Project 4). Mr. Ansah said Rocksure International will first undertake a Mineral Resource Estimate (MRE) to validate and define the bauxite reserves, leading to the construction of a mine and a refinery solution. According to him, the lifetime of the mine is estimated to span over six decades and will create over 1,000 direct and indirect jobs. He reiterated that the four projects will be private sector-led,
will be executed in partnership with key strategic investors, and will require a US$6bn investment. The real impact of an Integrated Aluminium Industry, according to Mr. Ansah, will be felt in the downstream sector, where demand for aluminium and aluminium-related products is expected to rise, especially with the establishment of various car manufacturing plants in the country. This value-addition drive will not only result in a thriving local economy but will significantly cut down on the importation of aluminium and aluminium products, he added. Also present at the event were Members of Parliament for the proposed mining areas, representatives of some government institutions, board members of GIADEC, traditional leaders from communities where the mines and refineries will be situated, and other stakeholders.
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Tax exemptions bill to be submitted to Parliament before year ends Continued from cover rife as the country tries to make progress in its revenue mobilisation efforts. The IMF has also said exemptions deprive the state of billions of cedis every year, with conventional estimates showing that between three and five percent of Gross Domestic Product (GDP) is lost every year to exemptions. Speaking at the maiden 2021 Spark Up GIPC investment summit in Accra last week, Mrs. Asare said: “The tax exemptions bill is in the offing, and I hope that before the year ends, we should submit the tax exemptions bill to Parliament, which will streamline all these areas of tax incentives.” In 2018 Finance Minister Ken Ofori-Atta announced that the
government was going to review and reform the tax exemptions regime to improve revenue
mobilisation and check abuse. However, a bill that was later developed as part of the reform
process has yet to be taken through the legislative process for passage.
Expert advocates roadmap to tackle cybersecurity threats Continued from cover American chemical engineer and inventor at the tenth anniversary launch of e-Crime Bureau, a cybersecurity company, in Accra. “The world today is very different than it was 10 years ago,
and even as recent as two years ago. Remote working during Covid-19 and the upward surge in the use of digital platforms to conduct business necessitated by the pandemic in most parts of the world has made us more vulnerable to cyber-attacks,” he
added. In 2011 Ghana had an internet penetration rate of 8.4 percent. This figure has however grown exponentially to 50 percent in 2021, with over 15.7m Ghanaians connected to the internet. The impact on cybersecurity
is growing just as rapidly, he pointed out. “Many institutions in Ghana lack a forensic-ready IT infrastructure and systems to identify and detect incidents when they do occur. We must come to a point of appreciating the reality of the cybercrime landscape and make frantic efforts to invest in technology to guarantee the security we desire in a way to support government and security agencies address teething issues of technology confronting our society today.” Statistics show that in January this year, there were 8.2m active social media users in Ghana, while data from the central bank also revealed that the total value of mobile money transactions in the country has been growing exponentially. The upsurge in mobile money transactions has its fraud-related challenges, Dr. Mensah said. A member of the board of e-Crime Bureau, Kwame Antwi Boasiako, urged all institutions to be cyber-conscious and encouraged the government to adopt new trends to tackle cybersecurity, since it has the potential to derail the progress of the economy. e-Crime Bureau provides cybersecurity-related services and solutions to private, public sector and international organisations.
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Ghana’s economy shows strong growth prospects - Moody’s, S.P
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wo credit rating agencies -Moody’s Investor Services (Moody’s) and Standard and Poor (S & P)-- have affirmed Ghana’s Credit Rating at B3 and Brespectively. The rating agencies also maintained Ghana’s outlook. The Ministry of Finance said in a statement that the credit rating agencies, in making their decisions considered Ghana’s improving growth prospects, resilient external sector performance, and continued access to the capital markets (domestic and international] as essential factors in maintaining the rating and the outlook. Notably, the two rating agencies recognised the efforts of government to “build back better” through the innovative Ghana CARES (Obaatanpa) Programme, it said. The statement noted that both credit rating agencies acknowledged that Ghana’s economy is recovering from the effects of the pandemic faster than its peers, adding that government should, however, focus more on
growth and the implementation of the Ghana CARES Programme. S. P, in particular, the ministry said, maintained Ghana’s rating on the back of the growing economic prospects and the relatively transparent and responsive political institutions. The stable outlook balances risks from fiscal and external financing pressures against the country’s medium-term economic growth prospects, it added. Both credit rating agencies, however, raised concerns about Ghana’s debt affordability and levels, but the Government said it was committed to debt sustainability and fiscal consolidation. “As such, between 2019 and 2021,
the government has undertaken various liability management measures to proactively reduce the external debt stock and the interest expense burden. As a result, the government bought back and retired over US$900m worth of Eurobonds, which has reduced the external debt stock significantly,” the statement assured. On the domestic front, it said government continued to conduct active liability management, saying this year alone, an amount of GH¢4.84 billion had been used for domestic liability management, which involved the buy-back of three-year and fiveyear bonds. “This has reduced the refinancing and rollover risks and interest cost inherent in the public debt portfolio. Our strategy has also positively impacted the interest rates on the primary and secondary securities markets,” it added. The ministry assured the public that Government was doing its best to vaccinate the majority of adult Ghanaians to achieve
herd immunity, a need that had become more imperative with the seeming third wave. To that end, it said Ghana is in constant talks with the African Vaccination Acquisition Trust (AVAT) for the supply of 17 million Johnson and Johnson doses. Ghana is among the 27 African countries that have made the initial deposit and completed the legal requirements, readiness checklist and emergency use authorisation required. The first batch of the vaccine is expected this month under the programme. The statement reiterated that, government’s primary aim, especially during the onset of the pandemic, had been to save lives and livelihoods, as such, it said government had implemented various life-saving initiatives and interventions in 2020/21 to protect the general population against the pandemic’s adverse social and economic effects. The interventions, however, it noted, had led to significant unbudgeted expenditures and elevated debt levels.
UBA records 33% profit growth, declares interim dividend Continued from cover representing a significant rise by 36.3 percent compared to US$108.2m recorded in the halfyear of 2020, while gross earnings grew to US$769.6m from $732.0m as at June 2020, a 5 percent growth. As at June 30, 2021, the Group’s total assets crossed the US$19.5bn mark as it soared to US$20.2bn, up from US$18.7bn at the end of the 2020 financial year. Customer deposits also crossed the US$14.6bn mark, growing by 7.4 percent to US$14.8bn from US$13.8bn as at December 2020. The Group’s shareholders’ funds remained robust at US$1.83bn, up from US$1.76bn in December 2020, reflecting its strong capacity for internal capital generation. In line with the bank’s culture of paying both interim and final cash dividends, the board of directors has declared an interim dividend of 20 kobo per share for every ordinary share of 50 kobo each held by its shareholders. UBA’s Group Managing Director/ Chief Executive Officer, Kennedy Uzoka, expressed delight over the bank’s performance in the first half of the year, adding: “This has been a strong first half for us as [the] global economic recovery
exceeded expectations, creating a positive rub-off on consumer and corporate confidence, savings and investment activities. We saw this positively impact our business as we continued to leverage our key strategic levers – People, Process and Technology, and our Customer 1st Philosophy, to revolutionise customer experience at UBA.” He added that the bank’s investment in the rest of Africa outside Nigeria continues to yield good results for the group. “The benefits of pan-African business diversification accruing to the Group are once again evident, with gross earnings and interest income growth of 5.1 percent and 8.3 percent respectively, despite the low-yield environment in our largest market, Nigeria. We are making remarkable progress on our strategy that is progressively positioning UBA as the bank of choice on the continent, driven by our emphasis on tech-led innovation and best customer experience.” Continuing, the GMD pointed out that the bank recognises the far-reaching effects of the pandemic on businesses globally and remains focused on its promise to always provide customers with the best banking
experiences possible. “Our H12021 performance reflects our progressive efforts in building on the strong momentum that we started the year with. As a purpose-driven organisation, we remain resolute in our drive for sustained growth in customer acquisition, transaction volumes and balance sheet, as we consolidate our ‘Africa’s Global Bank’ market position in the years ahead, uplifting livelihoods across the continent,” Uzoka said. UBA’s Group Chief Financial Officer, Ugo Nwaghodoh, on his part, noted that the bank’s goal is to achieve a marked improvement in earnings quality whilst maintaining positive operating leverage as well as top-notch asset quality. “The Group recorded a RoAE of 17.5% (from 14.4% in 2020H1) and a NIM of 5.8% (from 5.4% in H12020) as we played the volatile yield environment diligently for the best return on our interest-earning assets.
Capital position remained strong, with capital adequacy and liquidity ratios of 24.9% (22.4% in 2020H1) and 58.3% (58.2% in 2020H1) respectively. This is robust enough to support our growth ambitions,” he said. Nwaghodoh pointed out that even while the operating environment remains largely uncertain and volatile, despite marked improvement from Covid-19–induced macroeconomic stress, UBA will continue to build resilience through its geographically diversified business model to support headline earnings growth for the Group. “We remain committed to our 18% and 15% respective RoAE and deposit growth guidance for FY 2021, as we continue to invest in growth opportunities across our geographies of operation whilst managing capital and balance sheet prudently,” Nwaghodoh stated.
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Absa announces collaboration to strengthen digital partnerships ecosystem across Africa
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bsa Group, one of the largest financial service providers in Africa, will strengthen efforts to grow its digital partnerships ecosystem across Africa with the appointment of HYBR and SystemicLogic, which will help Absa identify potential collaboration partners. “We believe in the substantial mutual value that is created by connecting with key local, regional and global ecosystem networks that have extensive activities on the continent across multiple industries,” says Absa Group Digital Partnerships Ecosystem Lead, Andrew Davies. “HYBR and SystemicLogic’s skill sets and networks will augment our efforts to connect and collaborate with Africa’s innovators and entrepreneurs,” says Davies. Absa is looking to work with start-ups that have innovative tech-based solutions which could ultimately be scaled and deployed to benefit its customers. An Absa Digital Partnerships capability was established in 2020 with support from global collaborator Elixirr to create the strategy, operating model and execution capabilities to collaborate effectively with
innovative, mature start-ups from around the world. This capability has enabled Absa to set up, mobilise and deliver a digital partnerships ecosystem through which the Group now continuously sources collaborators to innovate with and rapidly co-create new value propositions and capabilities that align to business objectives. With a notable combined reach, the three scouting partners boast networks and memberships within the African and global start-up environments. “Our collaboration with Absa Group is a long time coming, having been exposed to Absa's work in the innovation ecosystem across Africa over the past five
years,” says HYBR partner Vuyisa Qabaka. “We’re looking for companies with which to build solutions to align with the Bank's ambition to deliver financial impact that improves lives,” says Qabaka. HYBR is a scale-up advisory firm with offices in both West Africa and Southern Africa. SystemicLogic is actively involved in contributing financial and mentorship support to various networks and individuals in several markets. “Every entrepreneur needs someone to believe in them, and there is no successful business that scaled without some involvement from a trusted financial partner,” says SystemicLogic CEO Audrey Mothupi. “We’re thrilled to
be able to continue working alongside the bank and offering opportunities to other companies like ours,” says Mothupi. Absa is looking to accelerate its digital transformation through strategic partnerships which collectively form an ecosystem that will deliver improved customer experience, reduce costs and support revenue growth. “We believe strongly in the power of open innovation and true value exchange between large corporates and startups,” say Chris Weiss, Partner at Elixirr. “Absa’s Digital Partnership capability ensures that they are able to effectively engage with potential partners to define what the value exchange will be, setting both parties up for longer term success. We are proud to have supported Absa on this journey and look forward to great things from our continued relationship.” “We will be focusing on establishing a meaningful exchange of value between Absa and future ecosystem members, as well as our scouting partners - for the benefit of all involved, and the ultimate benefit of our substantial customer base,” says Davies.
South African trade mission engages Ghanaian businesses By Ibrahim Mashud Mashud.ibrahim12@gmail.com
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South African trade mission has interacted with some Ghanaian businesses to establish relationships with relevant institutions for future economic cooperation. The mission was led by WESGRO—Cape Town and Western Cape, Tourism, Trade and Investment—in partnership with the Ghana-SA Chamber of Commerce and the Eastern Cape Development Corporation (ECDC). The High Commissioner of South Africa to Ghana, Jeanet Mason, in her welcome address said: “Opportunity is a common denominator that brings us together and so these are the platforms that we use to restructure our businesses in order to better our economy.” The Head of Export for WESGRO, Ms. Erica Jouber, indicated that WESGRO seeks to connect foreign buyers, local exporters and investors wishing
to take advantage of the unlimited business potential in Cape Town and Western Cape. She said WESGRO works closely with key players including the South African government, businesses, labour, district and municipal authorities. She added that: “We ae here to promote investment and not only to be engaged. We help create job opportunities.” The leader of the ADC Africa Group, Mr. Hennie Van der Merwe, said the trade mission
was to provide a starting point for a series of focused and sector specific interventions to develop and strengthen bilateral agribusiness exchanges and relationships between the two countries. Mr. Hennie disclosed that the economic development and prosperity of the African continent as well as the economic and trading bloc are inextricably linked to its ability to unlock the economic potential and value of its rich agricultural resources,
adding that commercial farming and agribusiness is essential for this to happen. He said the agribusiness sector could be a major drive of economic development and job creation in Ghana and on the continent. Some Ghanaian businesses that participated in the seminar were offered a platform to introduce their businesses and were encouraged to partner with the South African delegates to do business.
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Lakeside Estate launches 4 bedroom storey houses By Ibrahim Mashud Mashud.ibrahim12@gmail.com
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akeside Estate, with over 20 years of real estate development, has launched a new 4 bedroom storey house at the Lakeside Hills, a suburb of Accra. Lakeside Estate is arguably one of the leading giants in real estate product innovation and development and construction of quality houses to reduce the current housing deficit in Ghana. The 4 bedroom storey (orca) house which is located on a 670 meters square piece of land with a floor area of 270 meters square is a modern building which has been laid out to allow for easy access through its functional and well-defined spaces, airy, wellventilated and yet with a simple beautiful blend of traditional gable system with the hip roof, giving it unique catchy character. The Managing Director of Lakeside Estate, Dr. PrinceJoseph M.K. Ayiku, in his keynote address said “the idea behind
this beautiful structure is per our market research from our marketing team headed by our
Marketing Director, Mr. Lawrence De-Souza, which has come out with new innovations to meet
the needs of our prospective customers who are also interested in buying 4 bedroom storey houses within the Lakeside City.” “After examining the desire of our prospective buyers, we realised there is a market for this new product. This is the reason we task our architect to design a superior product that is increasingly useful and relevant with modern taste and the result is what we are outdooring today,” he added. The launching ceremony of the 4-bedroom story house coincided with 20th anniversary of the Lakeside real estate business in Ghana. Mr. Prince-Joseph was pleased to announce for prospective customers who are yearning to buy this new product that the price for this compelling product is $210,000, but it is going out for a promotional price of $180,000 from now to November 30, 2021 and with this big discount, it will be hard for anybody to resist this offer.
GUBA premieres 2021 awards in Ghana
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row, Unite, Build, Africa (GUBA) will dedicate its 2021 awards to the celebration of a century of the passage of Yaa Asantewaa, the influential warrior and Queen Mother of Ejisu, who rose to lead an Asante army against the invading British. This event will be in Accra, a first in Ghana. This year’s awards, is a celebration of an important moment in African history, one that is unique to the relations between the Republic of Ghana and the Republic of Seychelles and also to celebrate the resilience of the African woman. The theme for GUBA Awards 2021 is “Celebrating a Symbol of Courage and Resilience.” The awards, which will be held on Monday, November 8, 2021, in Accra, is expected to host several high-profile personalities in Ghana and from the diaspora. The plethora of dignitaries and personalities expected to grace this year’s awards, reflects the shift from an event celebrating the Ghanaian diaspora to a truly Pan-African occasion.
“More importantly, the event will also mark the centenary of the death of Yaa Asantewaa, an Asante Queen Mother and the last African woman to lead a major war against the then colonial powers. Yaa Asantewaa is honoured across Africa and the African diaspora for her resistance to then British imperialism and she is widely considered as a symbol of courage, strength, and resilience. She was a critical figure in recognizing and using the power of women to mobilize both men and women to resist colonial power.” GUBA Enterprise’s President and CEO, Dentaa Amoateng MBE, indicated. Dentaa noted, “GUBA awardees are the modern day representation of Yaa Asantewaa; at the time the world was faced with an unprecedented pandemic, they took up the mantle of leadership, and with courage and resilience, helped to steer the world back onto the path of progress”. While celebrating the contribution of Black women, the GUBA Awards 2021 will also raise awareness on maternal mortality and call for measures to
ensure safe child delivery across the continent. GUBA Enterprise believes that every child, born and unborn, has great potential and must be given the opportunity to fulfill this potential. GUBA Enterprise seeks to promote greater economic, social and cultural cooperation between Africa and the African diaspora through harnessing the power of the African youth to advance the socio-economic interests of the continent. About the Theme The year 2021 marks a centenary of the death of Yaa Asantewaa, an Asante Queen Mother and the last African woman to lead a major war against colonial powers in 1900, where she played the role of the Commander-in-Chief of the powerful Asante Empire. After the war, Yaa Asantewaa was captured and taken to Seychelles in exile, where she lived until her demise in October 21, 1921. This year, marks exactly 100 years of her transition. About GUBA Awards
GUBA Enterprise’s President and CEO, Dentaa Amoateng MBE
The GUBA Awards is a nonprofit organisation that focuses on enriching the African community in the Diaspora and in Africa with the aim of empowerment and growth. It is an event dedicated to highlighting and rewarding outstanding achievers. As one of the most professionally executed and entertaining events, the GUBA Awards ceremony attracts a high caliber of African political luminaries as well as business and entrepreneurial personalities.
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Fidelity Bank wins Bancassurance Leader of the Year award
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idelity Bank Ghana has been adjudged the Bancassurance Leader of the Year at the recently held Ghana Insurance Awards in Accra. The award was in recognition of the bank’s outstanding leadership in delivering exceptional bancassurance products and services to its customers and stakeholders. The bank said its bancassurance
products are underwritten by one of the global leaders in insurance, Prudential Life Ghana. “Through its partnership with Prudential Life Ghana, Fidelity Bank has been able to offer its customers innovative bancassurance products with the aim of ensuring that every customer, regardless of their financial need has access to quality insurance products," the
release said. “The partnership also delivers tailor-made solutions that appeal to diverse customers while also incorporating technological innovations that are in line with Fidelity’s digital transformation agenda to provide added value and convenience to customers,” it added. Commenting on the award, Mr Julian Opuni, the Managing
Director (MD) of Fidelity Bank Ghana, said: “We are honoured to be recognised as the leader in bancassurance. This award is a testament of our resolve to go beyond our core banking products and services to offer innovative products to our customers as we strive to meet their holistic financial needs.” “I urge the general public, if they have not done so already, to sign on to our bouquet of bancassurance products including the Fidelity Ultimate Premier Farewell Plan, Fidelity Ultimate Classic Farewell Plan, Fidelity Life Plan, Fidelity Education Support Plan, Fidelity Ultimate Hospital Cash Plan and Fidelity Platinum Endowment Plan to secure their future," Mr Opuni added. He said his outfit was happy to have a strong partnership with Prudential Life Insurance Ghana that has contributed to such an achievement. “We are also forever grateful for our customers whose loyalty and continued support is the foundation of the Fidelity success story. He dedicated the award to all customers, employees, and other stakeholders for believing with the Bank,” he stated.
PPA swears-in 17-member GHANEPS steering committee
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he Public Procurement Authority (PPA) has swornin a 17-member Steering Committee to oversee the successful implementation of the Ghana Electronic Procurement System (GHANEPS). The authority said “The mandate of the committee includes the facilitation and provision of inputs to the formulation of policies and procedures required for the implementation to enhance the rate of adoption. “They would also monitor and supervise the implementation progress on a regular basis and provide appropriate guidance to ensure the roll–out of GHANEPS to all Public Procurement Entities.” Mr. Frank Mante, the acting Chief Executive of PPA and Chairman of the Steering Committee, said for the successful implementation of the GHANEPS project, it was imperative to have collaboration and co-ordination among key stakeholders. “The implementation of GHANEPS is one such project where the key challenge is not in setting up a functional technology
platform, but more in getting all the stakeholders to buy in and adopt the platform for day-to-day procurement activities,” he said. The steering committee includes: Mr. Augustine Blay, Secretary to the Vice-President of Ghana; Eric Victor Appiah, from PPA; Ruth Ferkah, from Ministry of Communication; Rebecca Okai Hammond-representing the E-Transform Project, and Golda G. Asante, Office of the Head of Local Government Service.
Others are: Mr Fred Charles Forson, Office of the Head of the Civil Service; Raynold Quarshie, Ministry of Justice and Attorney General; Alexander Koomson, Ghana Audit Service; Marian Deladam, Internal Audit Agency; Frank Ademan, State Interest and Governance Authority; Kwame Jantuah, Association on Ghana Industries (AGI), and Beauty Emefa Narteh, Ghana AntiCorruption Coalition. The rest are: Madam Stella
Addo, Chattered Institute of Procurement and Supply Chain (CIPS); Araba Kudiabor, Ghana Health Service; Mr Kwame Prempeh, Deputy Chief Executive of PPA; A representative from the Ministry of Finance and the Ghana Institute of Engineers. The GHANEPS is being implemented under the eTransform project by the Ministry of Communication with funding support from the World Bank.
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Glovo expands its operations in Africa
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lovo, one of the world’s leading multi-category delivery platforms, has announced the expansion of its operations in Africa, to include Ghana and Tunisia, bringing its current operations to a total of seven countries on the continent. Following the expansion, an estimated 6.5 million more people will be able to access Glovo’s app, as the company continues its mission to make everything, within all towns and cities, available to everyone. Glovo’s investment in the region to date is worth a combined total of €25M ($30M) and the company expects to invest an additional €50M ($60M) over the next 12 months to further accelerate expansion. The company believes there are a number of key markets in Africa that are currently underserved and recognises the unique opportunity for the platform within local communities by supporting independent businesses and helping them reach new customers online. The Glovo app is already available in Morocco, Uganda, Kenya, Ghana, Côte d'Ivoire and Nigeria, bringing its services to more than 40 cities, more than
Leading global technology platform is expanding its operations in Ghana and launching in Tunisia, with plans to hire top talent in these markets, raising the bar for on-demand delivery and strengthening its commitment to Africa.
300,000 users, 8,000 restaurants and 12,000 couriers. Glovo initially launched operations in Accra in Ghana earlier this year, with the city of Tema following last month and it expects to launch in Tunis in Tunisia this October. Following its other acquisitions earlier this year in Central and Eastern Europe, Glovo has increased its operations to 23 countries, with its presence in Africa accounting for more than 30 percent of its geographical footprint. Glovo already has core
local leadership teams in place in its established countries in Africa and the company is committed to continuing its policy to hire top local talent. During the initial phase of its new expansion, the company plans to double its number of employees and add another 200 employees across the region by the end of 2022. Sacha Michaud, Co-founder of Glovo, said: “We couldn’t be more excited to be expanding our services in Africa, to be bringing Glovo to new cities in Ghana and launching in Tunisia. Our vision
is to give everyone easy access to anything in their city and our platform is at it’s best when it is connecting users and businesses, most of which are local restaurants and independent stores. We believe there’s a huge opportunity in these countries to help accelerate digitalisation and meet the rising demand for online shopping and deliveries, and we are working hand-in-hand with our local partners to market and deliver their goods to new users through the app.” William Benthall, Glovo’s General Manager of Sub-Saharan Africa, said: “Our expansion in Nigeria, Ghana and our upcoming launch in Tunisia is something we’ve been looking at for some time now, so it’s great to be able to make it official. There’s been an unprecedented spike in the on-demand delivery business in Africa and the expansion of our services to new countries and cities is both a reflection of that trend and a testament to our commitment to the continent. We’re looking forward to making food, groceries, pharmaceuticals and retail products available to our new users at the touch of a button.”
Canadian chamber schools businesses on digital payment systems By Ibrahim Mashud Mashud.ibrahim12@gmail.com
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he Executive Secretary of the Canada-Ghana Chamber of Commerce (CGCC), Mrs Edwina AttaSonno, has urged businesses to leverage digitisation to reposition themselves for growth and sustainability. Speaking at webinar on the theme: “Leveraging on Digitization to Reposition Your Business for Growth”, she emphasised that digital payments offer convenience and real-time transactions. “Digital payment system has the potential of making businesses grow faster because it provides easier and safer means of payments especially in the era of Covid-19,” she added. On Ecobank’s digitalisation drive, Edwina said: “Digitisation in our banking system has become very significant due to the growth in businesses and over 4000 people are banking with
this system through the Ecobank Mobile App.” Comparing the digital payment system to the traditional banking whereby goods and services are paid for in cash, she reiterated that digital payment system provides a more convenient way of paying for goods and services
in the country’s quest to moving from traditional banking to a cashless system. She described digital payment system as the game-changer in business transaction since the world is growing into a cashless way of paying for goods and services.
Explaing why people are still hooked onto cash even though she described the digital payment system as the game-changer to developing one economy, she admitted that going fully digital with payments could not achieved overnight. “However, we are putting in a lot effort to facilitate the use of the digital payment systems,” she added.
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Optimising digital services By Ebo Richardson Chief Enablement & Information Officer, Absa Bank Ghana Navigating the Digital Age Digital - along with its many variants and associations - has become a pervasive buzzword of our times. More than just some contemporary hype, it is fast becoming the de facto medium for both social interactions and commercial endeavour. Indeed, many organizations cite digital as the mainstay of their strategic ambitions, and the facilitator of the value-creating assets that will sustain their businesses well into the future. And why not? The opportunities and benefits that digital technologies promise to bring are set to dwarf and wildly disrupt traditional offerings. But how do we get the most from our digital setups? Variations of Digital Though most organizations have resolved to ply the digital path, for obvious reasons, the nature and extent to which they have invested in and committed to this journey varies significantly. While some are merely digitizing and others are digitalizing, a bold few are executing all-encompassing digital transformations. It is worth noting that these descriptions are not just different words to describe the same practice, but actually represent different faces and varying degrees of the “digital movement”. The first – that is digitization – is the creation of technologybased versions or replicas of existing processes and artifacts. It is thus another word for basic automation. The second – digitalization – involves a more substantial (re)construction of key assets using digital technologies such as analytics and artificial intelligence. Digital transformation, on the other hand, is a more extensive strategic activity that seeks to challenge and reimagine an organization’s value co-creation and capture capabilities, to the extent that it may materially alter the entire business model (or large aspects of it). The Make-up of Digital Digital is not equal to technology. It is far more involving than that. It is the facilitation of human activities and experiences – from socialization to commerce
– using new age technologies and devices. Simply put, it is the use of modern technologies to enable things to be done simpler, faster, more conveniently, and in a more customized way. In that sense, digital is more than the sum of its component parts. Building digital assets to solution needs or drive service delivery requires bringing together a number of important elements. These make up the various components, which fit and work together to enable interfacing, processing, and servicing. They include core services and platforms, channels or user interfaces, analytics and AI, and digital marketing, all of which are enabled by technology and encapsulated in a conducive culture. Additionally, as our reliance on technology increases and its associated threats become a menace, the need for robust controls is also brought to the fore. Optimizing Digital Components Regardless of whether an organization is merely digitizing or wholly transforming, both the digital capabilities used by its personnel and those used to service customers must perform optimally if goals are to be achieved. Optimal performance essentially means the organization must undertake some concerted work to fine-tune all components across the spectrum. Since the digital construct is made up of distinct components, each must be improved in a manner that is commensurate with the nature and size of the organization and its customer base. The objective is to make each as good as possible. So, how should this optimization manifest? Those responsible for the separate components should ensure best-in-class configuration and execution, as per the typical standards described below:
• A robust, resilient, and scalable technology infrastructure, to provide the necessary processing power, storage and network connectivity. This will ensure that platforms and applications have the needed resources (dynamically allocated) and function in a highly available environment. • An effective data management approach that ensures appropriate access to, use of, and protection for customer and transactional data. This will be the “fuel” for all services. Solid analytics would also birth optimized product development, tailored experiences, and targeted sales and marketing. • Effective operational and security controls that safeguard assets and processes, as well as assure efficient day-to-day operations. The objective here would be to achieve >70% controls automation. • A set of well-architected and highly available core platforms and services. This is where the servicing or solutioning of customer needs or requests happens. For a Bank this will most likely be the Core Banking, while a Telecoms Operator may point to the IN (Intelligent Network). • Friendly, intuitive, and consistent channels that make it easy for customers to engage and transact. This will be a primary touchpoint and will therefore be perceived as the key value delivery hub. Obviously, top-notch design considerations must be applied here, including user interface (i.e. look and feel), fulfilment processes, and usability. • A strategically-aligned digital marketing machinery that churns out well-crafted, targeted, and well-timed messages (and stories) using all available media. A culture that is agile and futureoriented will be the glue that makes these components work well together. It will also create
Ambassadors who will evangelize the offering to colleagues and customers alike. The eventual result will be a digital machine that is not only well-oiled and optimized, but also greater than the sum of its parts in terms of impact and outcome. Management buy-in is key The requirements of a digital setup that is both fit-for-purpose and fit-for-use tend to be extensive. Building such an asset requires substantial investment and sustained support. Consequently, buy-in from top management is a critical success factor. They must see a clear line-of-sight between the substantial investment needed and the benefits expected to accrue. To create sustainable value, management must then strategize to achieve a good balance between what their organization is good at today and what it must be good at tomorrow. With such commitment, the chances of success will outstrip the likelihood of failure. As the digital race heats up, those organizations that manage to find the pulse of their customers and leverage it to optimize their digital offerings will undoubtedly deliver superior experience that will set them apart from their competition. It will also engender levels of loyalty that may well stave-off likely digital disruptions. The race is make-or-break and very much on! Written by Ebo Richardson, Chief Enablement & Information Officer, Absa Bank Ghana
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Africa Business
FRIDAY SEPTEMBER 17, 2021
AfDB’s SEFA provides $1m to kick off modernisation of Africa’s hydropower fleet
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he Sustainable Energy Fund for Africa (SEFA) has approved a $1 million grant for modernisation of Africa’s aging hydropower fleet. The grant will fund the mapping and evaluation of African hydropower facilities’ rehabilitation needs. It will also support the preparation of modernization works for two pilot facilities to a bankable stage, a move expected to add 200 MW in generation capacity, create 150 jobs and reduce greenhouse gas emissions by about 300 kilotons of CO2 annually. The modernisation of hydropower stations is an opportunity to increase generation capacity at low-cost, and with relatively short leadtimes and minimal environmental impact.
Modern hydropower plays a key role for Africa’s energy transition, reducing reliance on fossil fuels and anchoring larger shares of Variable Renewable Energy sources. This transformative program under SEFA’s Green Baseload component will
specifically capitalize on the significant market opportunity for rehabilitation of Africa’s existing hydropower plants, said Dr. Daniel Schroth, Acting Director for Renewable Energy and Energy Efficiency at the African Development Bank.
The African Development Bank manages SEFA. The project is fully aligned with the Bank’s New Deal on Energy for Africa, which aims to provide universal access to energy for Africans and prioritizes low-carbon technologies that harness the continent’s hydro, solar, geothermal and wind resources. The program will be implemented in partnership with the International Hydropower Association(IHA), which has participated in similar initiatives in Asia and South America. Alex Campbell, IHA’s Head of Research and Policy said, “We are delighted to support the African Development Bank in this important and urgent project to modernize Africa’s hydropower fleet.”
Metro Mass board charged to turn around company
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he Minister of Transport, Kwaku Ofori Asiamah, has charged the governing board of Metro Mass Transit Limited (MMTL) to introduce innovative measures that will help turn around the transport company. Inaugurating the nine-member board in Accra on Tuesday on behalf of Mr. Asiamah, Frederick Obeng Adom, the Deputy Minister of Transport, tasked the board to ensure that the operations of the company are boosted. “Over the years, the company has gone through several challenges, including the drastic reduction in operational fleet, frequent breakdowns and rising operational cost. It is our expectation that the new board will take up this challenge to ensure that the company is revived to the level of winning back its share of the market and expand its services,” he said. The Minister also entreated the board to work with the management to address the increasing number of agitations among the company’s workforce and ensure that industrial harmony prevails, stressing that “these agitations if not addressed could potentially derail the ongoing efforts” to improve the business. The members of the board are Kofi Ahenkorah Marfo, chairman; Albert Adu-Boahene; Francis KofiNunoo; Robert Karikari-Darko;
Mrs. Bernadette Addo Dankwa; Dr. Joseph Okine Afrane; Nana Yaw Mantey; Marcus Deo Dake; and Angelina T. A. Mensah. The Deputy Minister said between 2018 and 2019, the Ministry supported MMTL with a total of 100 new intercity buses to revamp operations and is pursuing other arrangements to bring in more buses to augment
operations. However, he added, there is a need to improve infrastructure such as terminals and maintenance workshops, and he urged the board to support management to deliver on its mandate. The chairman of the board, Kofi Ahenkorah Marfo, said they are poised to work together with
the management of the company to achieve their objectives. “As a board, we are aware of the huge challenge thrown to us as a result of the matters we will be faced with to resolve and surmount. We, however, pledge that we are ready to face these challenges squarely and deal appropriately with them.”
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News
FRIDAY SEPTEMBER 17, 2021
FGR Bogoso Prestea progresses to finals of Inter-Mines First Aid and Safety competition
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GRBPL, operators of the Bogoso Prestea Mines (BPM), emerged as joint winners of the Inter-Mines Zonal First Aid Competition with industry “rivals,” Anglogold Iduapriem Mine. The other competitors in a tough contest, were Gold Fields – Tarkwa Mine, and Ghana Manganese Company. The quiz was in two parts, a practical demonstration of first aid emergency response, and an oral “what do you know” competition. In a tight finish, BPM and AngloGold Iduapriem Mine led with 45.5 points each from both competitions, qualifying them to participate in the national competition, to be hosted by BPM on November 7, 2021. The Inter-Mines First Aid and Safety Competition is an annual event that is held under the auspices of the Chamber of Mines, with support from the Inspectorate Division of the Minerals Commission and St John Ambulance, to highlight the importance of first aid and safety in the sector. It is designed to test the practical and theoretical
knowledge of the safe The Inter-Mines First Aid and Safety Competition is an annual event that is held under the auspices of the Chamber of Mines, with support from the Inspectorate Division of the Minerals Commission and St John Ambulance, to highlight the importance of first aid and safety in the sector. It is designed to test the practical and theoretical knowledge of the safety teams of
the respective companies and has in recent years increasingly been an important industry-calendar event. This year, it was held under the theme: Protect others by protecting yourself; COVID-19 is real! Since the introduction of the competition 44 years ago, BPM has made it to the finals each year, except for 2011. Participants from BPM are usually drawn across the various
departments of the mine, since occupational safety and emergency response protocols and practices are integrated across the entire operations. BPM, this year, was represented by Primilla Osei (Mining Department), Kwame Kyei Addo (Health, Safety, Environment, and Community Department), Ebenezer Otabil (Health,Safety, Environment,and Community Department), Isaac Egyir (Surface Mining Department), and Raymond Cudjoe (Supply Chain Department). In the past five years, basic schools in host communities have been made part of the safety competitions and participated in quiz and essay writing competitions at the zonal and national levels. Apart from 2019, when the representatives from BPM’s host community schools placed second at the national level, they have maintained first place throughout. This year, they placed second in the zonal competition, qualifying them to participate in the finals.
Ministry of Communication and Digitisation supports 100 girls in ICT with laptops
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he Ministry of Communication and Digitisation has presented 100 brand new HP laptop computers to the first 100 best girls in this year's "Girls in ICT training" held in the Western North Region. In all 1000 basic school girls participated in the Programme with 900 of them selected from the nine Districts in the Western North Region, while another 100 were selected from Prestea HuniValley in the Western Region. The presentation and training according to Mrs Ursula OwusuEkuful, sector minister formed part of government’s efforts to bridge the digital and ICT gap and empower young girls in the digital revolution world. The minister was of the view that technology played a vital role in all spheres of life and that 7,064 girls were trained already in basic computer skills, fundamentals of programming, HTML and coding. She said the ministry would
train more girls in the coming years and with the support of Huawei, the programme was scaled up to include girls in tertiary institutions. She announced that 25 schools in Western North would get computer Laboratories instead of the initial 15 and called on corporate institutions to partner the Ministry of Communication and Digitization to give young girls digital skills for the job market. MTN Ghana, the official sponsor of the Girls in ICT project in a message by Ms Louisa Ama Sosu, Senior Manager Network Performance, on behalf of Chief Corporate Services, congratulated all the 1000 participants and expressed confidence that they would take the lessons learnt seriously and practise the skills they had acquired. She encouraged them to put technology at the heart of their development plans, since that would give them a competitive advantage over their peers and
career mobility to earn more. Ms Asantewaa Fuakye from Kofikrom D/A Junior High School was adjudged the overall best. Savannah Region would host
the next edition of Girls in ICT Training. GNA
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Feature
FRIDAY SEPTEMBER 17, 2021
Countering chinese industrial policy is counterproductive
By Chang-Tai Hsieh
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S political leaders have long tried to counter Chinese industrial policy. And now they seem to have decided that the best way to do that is to emulate it. But their agenda betrays a profound lack of understanding of the unique challenge posed by China’s coupling of an authoritarian political regime with a dynamic market economy. Millions of Chinese firms, including some of the world’s most innovative, are occasionally asked to serve the regime’s political objectives – an unprecedented marriage of pioneering private companies and a Leninist oneparty state. Western countries cannot match it, and should not begin to try. But much of the US economic policy response to China is misdirected. For example, the United States wants to curtail China’s support for state-owned firms, despite the overwhelming evidence that such assistance starves private Chinese businesses of resources. The real challenge to America comes from private companies such as Huawei and Alibaba, which produce goods that US consumers eagerly buy. It does not come from state-owned firms like aircraft manufacturer COMAC, which has never made a profit and, more important, has prevented the emergence of a private-sector Chinese equivalent of Boeing. In fact, the private firms that now dominate the Chinese economy took off only after former Premier Zhu Rongji closed or privatized hundreds of thousands of state-owned companies in the early 2000s. The closures released capital to private firms and cleared the way for them to grow. Does anyone
seriously believe that the Chinese economy would be stronger if policymakers were to undo Zhu’s reforms and revive all the old lossmaking state enterprises? Or consider the US obsession with the Chinese government’s so-called “Made in China 2025” plan, which channels subsidies to private firms in “strategic” sectors such as semiconductors. The jury is still out on whether the billions of renminbi spent to support such industries will prove effective, but the evidence so far is not encouraging. The dominant global semiconductor manufacturer is Taiwan Semiconductor Manufacturing Company, not the Chinese champion Shanghai Semiconductor. And until now, the huge sums that China has plowed into this sector have resulted in spectacular failures such as the Hongxin Semiconductor, and the emergence of close to 60,000 new companies that have no technological expertise but are seeking to capitalize on the subsidies. Such outcomes are all too common when governments subsidize industrial sectors, perhaps owing simply to a lack of accountability. After all, who is held responsible when billions have been wasted and the officials who allocated the funds have moved on to other posts? The growth of China’s business sector has been fueled not by support for state-owned firms or industrial policy, but by powerful local governments’ backing of private firms – including Hyundai in Beijing, and Tesla and General Motors in Shanghai. “The commercial goal of selling more GM Buicks and Chevrolets in China becomes a political and economic campaign to enhance the power and might of the city of Shanghai,” says one long-time
observer of the car industry in China. “Think of it as Shanghai Inc., with the mayor as the chairman and CEO.” The support of local governments is particularly crucial for private Chinese firms. For example, the East Hope Group became the largest private aluminum producer in China with the support of the small city of Sanmenxia in Henan Province, despite the fierce opposition of the state-owned giant Chinalco. Chinese local governments also compete ferociously with each other to attract business – a crucial factor in allowing private firms to grow. This reflects the rivalry between the Communist Party of China’s powerful local secretaries, many of whom eventually become members of the CPC’s Politburo. In contrast, the central government ministers who run industrial policy and state-owned firms almost never make it into the party’s top tiers. If the US forces China to dismantle its support for stateowned firms and roll back its industrial policy, it would succeed only in removing the shackles on the private sector, making it more likely that other innovative private companies, supported by local party secretaries, would emerge to challenge US businesses. Although US consumers would benefit, these Chinese firms – regardless of their intentions – have no choice but to comply when asked to advance the CPC’s political goals. But US strategy instead seems focused on emulating the worst aspects of Chinese industrial policy. One example is the Facilitating American-Built Semiconductors Act, recently introduced in Congress, which would provide investment tax credits to US chip manufacturers.
This follows the US Senate’s approval in June of a $52 billion investment in the sector as part of the US Innovation and Competition Act. It is easy to understand why the US semiconductor industry would welcome the $52 billion. But besides the questionable equity of subsidizing wealthy US firms that use chips, the measure will produce the same result as the billions that China has poured into semiconductors. It will spawn companies that specialize in obtaining free money instead of investing in new technologies and products, causing the US semiconductor industry to fall further behind the leading global players. So, what should America do instead? Late in his life, the twentieth-century US diplomat George F. Kennan said that “the best thing we can do if we want the Russians to let us be Americans is to let the Russians be Russian.” His advice also applies to US policy toward China today, with the added complication that the current authoritarian superpower also has a market economy. The real business-related challenge the US faces vis-à-vis China is the tradeoff between national security and the benefits of economic exchange, not China’s support for state-owned firms or its industrial subsidies. And the worst thing America could do is to enact industrial policies of its own. Chang-Tai Hsieh is Professor of Economics at the University of Chicago Booth School of Business.
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Feature
FRIDAY SEPTEMBER 17, 2021
Where has all the money gone?
Robert Skidelsky
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mid all the talk of when and how to end or reverse quantitative easing (QE), one question is almost never discussed: Why have central banks’ massive doses of bond purchases in Europe and the United States since 2009 had so little effect on the general price level? Between 2009 and 2019, the Bank of England injected £425 billion ($588 billion) – about 22.5% of the United Kingdom’s 2012 GDP – into the UK economy. This was aimed at pushing up inflation to the BOE’s mandated medium-term target of 2%, from a low of just 1.1% in 2009. But after ten years of QE, inflation was below its 2009 level, despite the fact that house and stock-market prices were booming, and GDP growth had not recovered to its pre-crisis trend rate. Since the start of the COVID-19 pandemic in March 2020, the BOE has bought an additional £450 billion worth of UK government bonds, bringing the total to £875 billion, or 40% of current GDP. The effects on inflation and output of this second round of QE are yet to be felt, but asset prices have again increased markedly. A plausible generalization is that increasing the quantity of money through QE gives a big temporary boost to the prices of housing and financial securities, thus greatly benefiting the holders of these assets. A small proportion of this increased wealth trickles through to the real economy, but most of it simply circulates within the financial system. The standard Keynesian argument, derived from John Maynard Keynes’s General Theory, is that any economic collapse, whatever its cause, leads to a large increase in cash
hoarding. Money flows into reserves, and saving goes up, while spending goes down. This is why Keynes argued that economic stimulus following a collapse should be carried out by fiscal rather than monetary policy. Government has to be the “spender of last resort” to ensure that new money is used on production instead of being hoarded. But in his Treatise on Money, Keynes provided a more realistic account based on the “speculative demand for money.” During a sharp economic downturn, he argued, money is not necessarily hoarded, but flows from “industrial” to “financial” circulation. Money in industrial circulation supports the normal processes of producing output, but in financial circulation it is used for “the business of holding and exchanging existing titles to wealth, including stock exchange and money market transactions.” A depression is marked by a transfer of money from industrial to financial circulation – from investment to speculation. So, the reason why QE has had hardly any effect on the general price level may be that a large part of the new money has fueled asset speculation, thus creating financial bubbles, while prices and output as a whole remained stable. One implication of this is that QE generates its own boom-andbust cycles. Unlike orthodox Keynesians, who believed that crises were brought on by some external shock, the economist Hyman Minsky thought that the economic system could generate shocks through its own internal dynamics. Bank lending, Minsky argued, goes through three degenerative stages, which he dubbed hedge, speculation, and Ponzi. At first, the borrower’s
income needs to be sufficient to repay both the principal and interest on a loan. Then, it needs to be high enough to meet only the interest payments. And in the final stage, finance simply becomes a gamble that asset prices will rise enough to cover the lending. When the inevitable reversal of asset prices produces a crash, the increase in paper wealth vanishes, dragging down the real economy in its wake. Minsky would thus view QE as an example of state-created financial instability. Today, there are already clear signs of mortgage-market excesses. UK house prices increased by 10.2% in the year to March 2021, the highest rate of growth since August 2007, while indices of overvaluation in the US housing market are “flashing bright red.” And an econometric study (so far unpublished) by Sandhya Krishnan of the Desai Academy of Economics in Mumbai shows no relationship between asset prices and goods prices in the UK and the US between 2000 and 2016. So, it is hardly surprising that, in its February 2021 forecast, the BOE’s Monetary Policy Committee estimated that there was a one-third chance of UK inflation falling below 0% or rising above 4% in the next few years. This relatively wide range partly reflects uncertainty about the future course of the pandemic, but also a more basic uncertainty about the effects of QE itself. In Margaret Atwood’s futuristic 2003 novel Oryx and Crake, HelthWyzer, a drug development center that manufactures premium-brand vitamin pills, inserts a virus randomly into its pills, hoping to profit from the sale of both the pills and the antidote it has developed for the virus. The best type of diseases “from a business point of view,” explains
Crake, a mad scientist, “would be those that cause lingering illness [...] the patient would either get well or die just before all of his or her money runs out. It’s a fine calculation.” With QE, we have invented a wonder drug that cures the macroeconomic diseases it causes. That is why questions about the timing of its withdrawal are such “fine calculations.” But the antidote is staring us in the face. First, governments must abandon the fiction that central banks create money independently from government. Second, they must themselves spend the money created at their behest. For example, governments should not hoard the furlough funds that are set to be withdrawn as economic activity picks up, but instead use them to create public-sector jobs. Doing this will bring about a recovery without creating financial instability. It is the only way to wean ourselves off our decade-long addiction to QE. Robert Skidelsky, a member of the British House of Lords, is Professor Emeritus of Political Economy at Warwick University. The author of a three-volume biography of John Maynard Keynes, he began his political career in the Labour party, became the Conservative Party’s spokesman for Treasury affairs in the House of Lords, and was eventually forced out of the Conservative Party for his opposition to NATO’s intervention in Kosovo in 1999.
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FRIDAY SEPTEMBER 17, 2021
Some relevant digital transformation checkpoints for a digital economy
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frica should think big on digital development. At the current, incremental pace of economic and social advancement, according to the world bank, too many of Africa’s expanding youth population will be denied the opportunity to live up to their potential. Digital technologies offer a chance to disrupt this path–unlocking new pathways for rapid economic growth, innovation, job creation, and access to services that would have been unimaginable only a decade ago. Yet there is also a growing ‘digital divide’, and increased cyber risks, which need urgent and coordinated action to mitigate. An effective digital transformation strategy is a catalyst for business growth and allows organizations to make most of the cutting-edge technological innovations. With technology disrupting most traditional business models, organizations need to invest more than ever to stay relevant in a fiercely competitive market. Also, there is the need to put people at the center of the digital future by equipping them with foundational skills in literacy and numeracy, digital and “soft” skills such as communication, management, analytical thinking, and problem-solving skills. Lack of such relevant skills in the digital age can limit opportunities for many African countries to make the most of digital technologies and catch up. Individuals have the chance to tap into the many areas in the digital space and must position themselves in order not to be denied the opportunity to live to expectation. The inability of the formal sector employment to keep pace with population growth is
forcing most of the youth into the growing informal economysafeguarding employment and income, thus allowing young people to enter the labour market. Digital technologies, however, have diverse effects on the work of those in the informal economy. Technology-based innovation processes in the informal economy can enhance productivity and the working conditions of those who work in the informal economy. However, it can also mean new dependencies and discrimination. Digitalization requires those who work in the informal economy to have new skills–digital skills but also basic literacy. For instance, capturing data makes it easy for End Users to digitize content. Data capture, or electronic data capture, is the process of extracting information from a document and converting it into data readable by a computer. Data capturing can also refer to collecting relevant information, whether sourced from paper or electronic documents. It is important for businesses in the informal sector to learn to digitally capture and route information, in simple and effective ways, integrating with desktop scanners, multifunction devices, mobile devices, email, and existing business applications. Learning to trade online, creating digital signatures, emails, and accounts, accessing digital and payment platforms, etc., should not be the preserve for the formal sector only. The informal economy needs much introduction and training in relevant skills to elevate and catch up to the time. For example, only a few citizens have digital IDs or transaction accounts–locking them out of access to critical
digital services and e-commerce. For many youths, marginalized sections of society, and adult learners, access to digital and soft skills training can be expanded through non-formal technical and vocational education and training provided by government institutions outside the formal education system, nongovernmental organizations, and civil society, international organizations, and the private sector. This requires adequate funding to relevant and flexible courses that are aligned with employers’ or industry needs, as well as continuous professional development for trainers and resources. As Ghana progresses with its digitization agenda, policy interventions are needed and should be prioritized to increase female access to and enrolment in formal and informal technical and vocational education and training, as well as developing gender-sensitive, employerled training models. Policies should also be directed at prerequisites that are required to prevent the digital divide from becoming wider and to ensure that disadvantaged groups also benefit from the digital transformation. These policies must strengthen innovation and knowledge systems through domestic markets. This can help businesses develop marketing strategies, move into more sophisticated products, boost technology uptake, and increase implementation and innovation. This also promotes strategies to nurture and support skills upgrading, employment initiatives, and developing the infrastructure for training programs in digital skills. Certainly, this can also boost
Ghana’s readiness to leverage cross-border trade opportunities. Educational and research institutions, training providers, and businesses need to promote digital skills development and upgrading. Industry associations, research and development organizations, makerspaces, hubs, and technology parks must collaborate to scale up digital skills development and training in Africa, centered on the future of the workforce, and in areas such as robotics, Internet of things, artificial intelligence, digital design and fabrication, 3D printing, cybersecurity, cryptography. Public-private collaborations can support hubs and makerspaces that are integrated and linked with the rest of the domestic economy, driving innovation and skills development in all fields, including construction, health, agriculture, transportation, waste management, education, etc. Africa can harness the digital economy as a driver of growth and innovation, but if it fails to bridge the digital divide, its economies risk isolation and stagnation. If industries in emerging economies and developing countries grow because of new technologies, this may increase the number of formal jobs and cause a corresponding reduction in informality. It is therefore important for developing economies to take deliberate steps to invest in digital skills development and transformation. 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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NO. B24 / 249 | NEWS FOR BUSINESS LEADERS
MONDAY MAY 3, 2021
FRIDAY SEPTEMBER 17, 2021
GSS to release provisional results of 2021 PHC on September 22
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he Ghana Statistical Service (GSS) will on September 22, 2021 release provisional results for the 2021 Population and Housing Census (PHC). That will be the first-time provisional results will be released within three months of the census night. This was contained in a statement from the service which published the Product Release Calendar for the 2021 PHC. The calendar previews the data products that would be generated from the 2021 PHC. The purpose of the calendar, the statement said, was to provide information to stakeholders and data users on when data products from the census would be made available to the public to promote extensive usage of the census figures. The calendar features six different types of publications and eight interactive and userfriendly products to be released within the next two years to meet the diverse needs of data users.
The publications are; the Preliminary Report, Residential Proximity to Essential Services Report, General Report, Thematic Reports, Analytical Reports, and the Census Atlas. Other products are; policy briefs, interactive census results dashboard, infographics,
dissemination seminars, webinars for data users, videos, fact sheets, and one per cent Public Use Microdata Sample. The 2021 PHC will provide updated demographic, socioeconomic and housing data for research, policy, and planning over the next decade.
The 2021 PHC, is the nation’s first fully digital census utilising technology to enhance census implementation and data quality. The use of technology helped in capturing real-time data, quality monitoring and facilitated faster data processing and results for early release.
StanChart presents prize to winner of ‘Bank more score more’ campaign
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tandard Chartered Bank Ghana Limited has announced the ultimate winner of its ‘Bank More Win More Campaign’. The campaign is a digital
pan-bank league competition which offered customers across 11 markets an opportunity to accumulate points, leading to winning exciting prizes. The ultimate winner walked
away with a cash reward. As a compelling initiative for Liverpool Football Club (LFC) and other soccer fans and clients, the campaign was created as a virtual league format to drive client
acquisition and encourage crossproduct sales. The initiative rewarded fans and customers for their love and passion for soccer and Standard Chartered. Speaking at the presentation, Head, Consumer, Private and Business Banking of Standard Chartered Bank Ghana, Ms Yvonne Gyebi said, “we remain committed to consistently delighting our clients, giving them the best experience with our products and services and deepening our relationship with them by offering them exciting rewards. As a Bank that is Here for good, we will continue on this trajectory to give each client an extraordinary experience”. She urged all potential clients to sign up on SC Mobile and make it a point to participate in future rewarding campaigns as the Bank will continue to deliver value to its customers.