Business24 Newspaper (June 1, 2020) by Business24 Online

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MONDAY JUNE 1, 2020

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Akufo-Addo announces path to normality Mining offers hope amid virus pain BY DOMINICK ANDOH MORE ON PAGE 3

Akufo-Addo says plans to ease restriction must be backed by data

BY NII ANNERQUAYE ABBEY President Nana Addo Dankwa Akufo-Addo has announced a pathway to easing the restrictions imposed to contain the COVID-19 pandemic, as the country bids to limit the economic damage in the wake of the scourge. Analysts have predicted that the fallout of the pandemic is likely to push the economy towards a recession—with the latest move by the President seen as one of the measures to halt the slide. Ghana’s initial response to the viral infection was to shut its borders to the outside world, while a ban on social gatherings was put in place to limit the spread of the virus. But the President in his tenth address to the nation since the outbreak of the coronavirus said these restrictions cannot be in place forever, outlining plans to ease them.

“I know, at firsthand, the devasting impact the measures employed to defeat the virus have had on our social, religious, cultural and economic lives, as well as on our jobs and the education of our children; and yet, because of love of country, we have borne with them. I know, however, that we cannot live with these restrictions forever, and that it is imperative we find a safe way to return our lives to normality, as other nations across the globe are trying to do,” he said. Nana Akufo-Addo announced that government has reached a consensus with a number of stakeholders for a “controlled, progressive, safe easing of restrictions to get our lives and economy back to normal”. According to him, government’s discussions with stakeholders in health, labour, religious, chieftaincy, education, hospitality and other

Women still behind men in tertiary education enrolment BY BENSON AFFUL

MORE ON PAGE 5

GHc 5.13*

INTERNATIONAL MARKET BRENT CRUDE $/BARREL

35.25

NATURAL GAS $/MILLION BTUS

1.73

GOLD $/TROY OUNCE

1,734.68

CORN $/BUSHEL

329.50

COCOA $/METRIC TON

2,399

COFFEE $/POUND:

+5.70 ($108.30)

COPPER USD/T OZ.

220.15

SILVER $/TROY OUNCE:

17.07

NEWS/EDITORIAL

MONDAY JUNE 1, 2020

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EDITORIAL

Wash your hands 2

Cover your cough

Move to higher grounds now! Residents of Tetegu, Oblogo, Pambros Salt, Lower McCarthy Hill, Lower Weija, Bojo Beach, Ada Kope, Tsokome and surrounding communities that are likely to be flooded when the Ghana Water Company Limited (GWCL) spills excess water from the Weija Dam need to heed the warning and move to higher grounds now. The GWCL has said it is to spill excess water from the Weija Dam as part of measures to safeguard the integrity of the dam. The Weija Dam level has risen from 37ft to 47.9ft within two days as a result of heavy rainfall in Accra and the Eastern Region. As a result, the company will begin spilling excess water from the Dam as part of routine measures to safeguard it. “The safe operating level of the

dam is 47ft. Like every dam, its safe operating levels are maintained to prevent it from possible collapse. Hence, the spillage,” the stateowned utility said in a statement. “Management of GWCL therefore wishes to inform the general public as well as institutions and organizations who have properties downstream of the dam, that the opening of the spillway gates is inevitable and possibly cause flooding. Therefore, the company urges inhabitants living in communities downstream and along the buffer zone of the river course, to evacuate the area to forestall any eventualities and also to protect life and property,” the statement added. This issues is becoming an annual affair and the earlier we act the

better to avoid any casualties. Indeed, the Business24 commends the GWCL for their house to house sensitisation and using public information address systems within the communities to caution settlers and residents on the repercussions of their continuous stay within the buffer zone. We call for a sustained sensitisation by the GWCL with support from opinion leaders, Chiefs, Assemblymen, Unit Committee leaders and Heads of schools within the affected communities to help so that the spilling exercise would be conducted without any casualties.

Akufo-Addo announces path to normality

3 (…CONTINUED FROM COVER )

Wear a mask Brought to you by

LIMITED Copyright @ 2019 Business24 Limited. All Rights Reserved. Editorial Team Dominic Andoh: Editor Eugene Kwabena Davis (Head of Parliamentary Business & Commodities) Benson Afful (Head of Energy & Education) Patrick Paintsil (Head of Maritime & Banking) Nii Annerquaye Abbey (Online Editor) Marketing Alexander Lartey Agyemang (Business Development Manager) Ruth Fosua Tetteh (Dept. Business Development Manager) Gifty Mensah (Marketing Manager) Irene Mottey (Sales Manager) Edna Eyram Swatson (Special Projects Manager ) Events Evelyn Kanyoke (Snr. Events Consultant) Finance/Administration Joseph Ackon Bissue (Accountant)

sectors have hinged on an analysis of the data gathered on the pandemic and the adoption of best practices and experiences of other countries that have attempted to move on in the wake of the pandemic. “Ours is going to be a phased approach, involving a selected list of public gatherings, based on their risk profile, socio-economic impact, and, most importantly, our capacity to enforce and to respond in the event of a flare-up in our number of infections,” the President said. The first stage in the process of easing restrictions will see the partial reopening of schools to final-year students, who will resume classes in mid- to end-June ahead of the conduct of their respective exit examinations. Additionally, religious services with a maximum number of 100 congregants at a time can take place in church or at the mosque, with a mandatory onemetre rule of social distancing between congregants. Furthermore, the wearing of masks has been made mandatory in churches and mosques, while a register of names and contact details of all worshippers is to be kept. Hand washing facilities and sanitisers are to be provided, with a maximum duration of one hour for each service. The President reiterated that sporting events, political rallies, and large religious gatherings such as crusades, pilgrimages and conventions remain suspended till July 31, with the country’s

borders closed until further notice to human traffic. “The introduction of this phased opening up of our country means that each and every one of us must continue to remain vigilant and respect the enhanced hygiene and

social distancing protocols that have become part and parcel of our daily routine over the last three months. We cannot afford to let our guard down and ruin the successes we have chalked over this period,” Nana Akufo-Addo said.

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Mining offers hope amid virus pain BY DOMINICK ANDOH The mining sector remains resilient despite the economic threat of the coronavirus pandemic in Ghana, Dr. Toni Aubynn, president of the Africa Institute of Extractives Industry (AIEI), a think-tank, has told Business24. The respiratory disease has led to the near-collapse of many sectors and drastically affected government’s revenue projection for 2020, but the impact on the mining sector has been minimal. Dr. Aubynn, a former mining executive and former CEO of the Minerals Commission, reckons that the decision to exempt the mining sector from the three-week lockdown announced in March, as part of measures to contain the spread of the disease, was a “wise decision because if mining was included, Ghana would have gone down on its knees because its depends heavily on mining.” Ghana’s mining sector, mainly dominated by gold production,

Price of gold—US$ per ounce

remains one of the key fiscal revenue performers, and the relatively stable output will help realise some important inflows for central government. Ghana’s gold output of 4.8 million ounces in 2018 surpassed South Africa’s 4.2 million ounces total for the first time, making it Africa’s

leading and the eighth-largest gold producer in the world. Given the relatively stable output of the sector and the relatively high price of gold on the international market, Dr. Aubynn believes that revenue from the mining sector could help close the huge fiscal deficit brought on by the pandemic.

“The sector would have to support government, but what I would not like to see is if the sector is forced to, sort of an imposition, instead of engaging stakeholders now and coming to a consensus,” he said. Ghana Chamber of Mines data show that fiscal payments attributable to the mining sector increased from GH2.16bn in 2017 to GH¢2.36bn in 2018. The price of gold dropped sharply in March when governments around the world began imposing lockdown restrictions as part of measures to control the coronavirus pandemic. As at March 5, the precious mineral was trading at US$1,674 per ounce, but prices fell sharply to US$1,472 by March 19. It has since rebounded and is trading at about US$1,712, providing a much-needed boost to a government whose projected revenue from oil sales has more than halved due to the sharp drop in oil prices on the international market.

Women still behind men in tertiary education enrolment BY BENSON AFFUL Government’s agenda to achieve a 50:50 ratio of male to female enrolment is still a mirage, as male enrolment constitutes 58 percent of total enrolment in tertiary institutions across the country. There are a total of 254,237 male students in the country’s tertiary educational institutions pursuing various programmes as against the 185,288 female counterparts, according to the latest data from the National Accreditation Board. The data revealed that there are a total of 439,743 tertiary education students with 14,330 teaching staff. Among universities, the disparity is wider in public universities, where women account for 40 percent of students, compared with private universities, where women enrolment stands at 42 percent. The gender disparity in tertiary education enrolment is against the fact that women make up 52 percent of the population aged 1549, the typical period of life when a person is likely to be pursuing undergraduate or graduate studies, and it shows how much more needs to be done to retain girls in school up to the highest level they can attain. In general, enrolment in university has accelerated since the 1990s, when there were only government-

owned institutions. Business24 analysis of the data shows that 84 percent of students in tertiary education were in public institutions, including universities, technical universities, colleges of education, and colleges of

agriculture. The nation’s premier university, University of Ghana, has a total student population of 40,342, according to the data. Out of this figure, 22,054 are male students while 18,288 are female.

The Kwame Nkrumah University of Science and Technology (KNUST) has a student population of 45,638, of which 29,278, representing 64 percent, are male with the remaining 36 percent being female. The University of Cape Coast has a total student population of 57,909, with 57 percent being male. The University of Education, which has the highest number of students of 61,836, has 61 percent of them being male. In 1990/91 there were barely 10,000 people attending university in Ghana. Education watchers have said the gender disparity in tertiary education can be improved if more girls are encouraged to go to Senior High School (SHS) and complete that level successfully. They argue that in rural areas, where gender disparities tend to be wider than average, there should be a doubling of efforts to ensure that girls receive the necessary support and motivation to complete primary and secondary school successfully. It is expected that with the introduction of the government’s Free SHS, more girls will be given the opportunity to go to school irrespective of their financial background.

MONDAY JUNE 1, 2020

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Implement ECOWAS Veterinary Pharmaceutical Protocol in livestock sector The Women in Poultry Value Chain (WIPVaC) has called for the speedy implementation of the Economic Community of West African States (ECOWAS) Veterinary Pharmacy Protocol in the country. The group, which is an umbrella organisation of women poultry value chain actors, believe that supporting the implementation of the ECOWAS Veterinary Pharmaceutical Protocol will allow Ghana’s livestock sector actors to prioritise action that safeguards the development of the livestock value chain. The National President of the apex body of Women in Poultry Value Chain (WIPVAC-Apex), Mrs. Victoria Norgbey said the government’s agricultural productivity programs such as the Rearing for Food and Jobs stand to increase its impact following the implementation of the protocol. “Animal health is human health; hence the speedy implementation of the protocol is paramount to the health of consumers and the time is now,” she said. She explained that as the world was increasingly inter-connected, emerging and re-emerging animal diseases in one country can potentially constitute a threat to global health security and therefore the lack of appropriate policy response mechanisms makes the sector vulnerable to morbidity and mortality and puts pressure on health systems, as well as, significant

economic loses to countries by way of losing animal trade, travel and loss of economic opportunities. The protocols During its Sixty Fifth Ordinary Session of the Council of Ministers held in 2010, the ECOWAS created and set rules, establishing Community Procedures for Management of Veterinary Drugs and Biologicals. The directive known as Directive C/ DIR. 1/11/10 on ECOWAS Veterinary Pharmacy and Regulation C/REG 22/11/10 appreciates the fact that handling of veterinary drugs and biological issues is not homogenous in the region and there was the need to harmonise legislations and regulations in the region to properly address animal production and health challenges. Some countries in the ECOWAS Sub-Region have gazetted the harmonised and implemented the regulations on Veterinary drugs and biologicals quality control. Seven countries in the Sub-Region have gazetted the harmonized regulations on Veterinary drugs and biologicals quality control. These countries are Burkina Faso, Cote D’Ivoire, Liberia, Mali, Sierra Leone, Senegal and Togo. In the meantime, three other countries are in the process of gazetting the harmonized regulations and these are The Gambia, Niger and Ghana. The Protocol was presented to the Parliament of Republic of Ghana on the 13th June 2017 and was Ratified

Mrs. Victoria Norgbey on 1st February 2018. Parliament adopted the resolution to ratify Regulation C/REG. 22/11/10 and Directive C/DIR. 1/11/10 on February 1, 2018 but implementation has since delayed due to key recommendations made by Parliament to be carried out, including the enactment and/or update of animal production and veterinary laws to align with the protocol. Benefits of speedy implementation Mrs. Norgbey explained that speedy and effective implementation of this protocol was critical because it will safeguard the interest of livestock farmers, veterinary authorities

and the general public against adulteration, misleading claims and inappropriate use of veterinary products (which also affects human health) as well as facilitate inter and intra-state trade in veterinary drugs and biologicals through implementation of principles and rules mutually agreed at subregional level to dismantle trade barriers. She added that it will also help facilitate local production of quality veterinary drugs and biologicals, facilitate timely and convenient access by livestock farmers and veterinary authorities to quality veterinary drugs and biologicals and encourage private investment in the veterinary drugs and biologics industry BUSAC-led advocacy The group has since last year done a number of advocacy activities and public sensitization for the speedy implementation of the ECOWAS Veterinary Pharmaceutical Protocol in Ghana. It received sponsorship from the BUSAC Fund and its donors, DANIDA and USAID, as well as, USDA-Ghana Poultry Project for the advocacy project. Mrs. Norgbey explained that WIPVAC’s work involved establishing a livestock sector coordination unit to harmonise the advocacy, that is reviewing the status of the protocol and carrying out stakeholder consultations and dialogue sessions.

Funding for women-owned businesses launched Small and medium businesses based and owned by women in Ghana are expected to receive support to boost their businesses under the auspices of Women’s Empowerment and Investment Group (WEIG) in partnership with Annan Capital Partners (ACP) and GUBA. The seed investment is part of an initiative to uplift SMBs currently affected by the coronavirus pandemic. Applications for the initiative is expected to commence from the 1st of June 2020. The Women’s Empowerment & Investment Group (WEIG) is a women-led and majority owned Ghanaian Investment Holding Company set up to efficiently channel capital and expertise into high-potential Small & Medium Scale Enterprises (SMEs) that prioritize female empowerment & entrepreneurship. WEIG does this by making permanent capital investments in women focused greenfield and brownfield businesses/business opportunities in Africa’s “KINGS”,

economies namely Kenya, Ivory Coast, Nigeria, Ghana, and Senegal of which Ghana remains a primary focus country, the release further adds. Commenting on the strategic agenda for the initiative, co-founder and CEO of WEIG, Adeline AkufoAddo Kufuor said : “Through our local and international value adding networks we aim to assist women to create long term wealth for themselves”. The Managing Partner of Annan Capital Partners (ACP)- Robert Annan, also stated : “We are excited to support Female-led SMEs

in Ghana with investment and infrastructure to support their long term growth and development.” Annan Capital Partners (ACP) is a specialized boutique investment and advisory company active in industries such as energy, health, education, real estate, agribusiness, technology and more. They work to provide businesses with professional and insightful investment strategies that preserve their capital and diversify their investment in sectors which will give an appreciable return on their investments. The funding initiative is in line with their objectives and is incredibly

significant given the current pandemic and its effect on small businesses. Dentaa Amoateng MBE, President of the GUBA Enterprise stressed on the importance of the initiative “Coronavirus has greatly affected a number of business especially, small and medium businesses. This initiative is not only timely but incredibly necessary to help women businesses get back on track. GUBA Enterprise through the GUBA Expo works to provide a platform for the elevation of small and medium enterprises therefore, we are glad to be in partnership on this project. We encourage all suitable businesses to apply”- she added. The seed investment available under this initiative ranges from 15,000 to 30,000 Ghana Cedis. Businesses that meet the eligibility criteria are encouraged to apply via https://www.surveymonkey.com/r/ Q99B669 from the 1st of June till the 1st of August 2020. This initiative is one of the many ways to help boost women businesses and the Ghanaian economy as a whole.

MONDAY JUNE 1, 2020

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Excess water to be spilled from Weija Dam Ghana Water Company Limited (GWCL) is to spill excess water from the Weija Dam as part of measures to safeguard the integrity of the dam. The Weija Dam level has risen from 37ft to 47.9ft within two days as a result of heavy rainfall in Accra and the Eastern Region. As a result, the company will begin spilling excess water from the Dam as part of routine measures to safeguard it. “The safe operating level of the dam is 47ft. Like every dam, its safe operating levels are maintained to prevent it from possible collapse. Hence, the spillage,” the stateowned utility said in a statement. Communities that are likely to be affected include; Tetegu, Oblogo, Pambros Salt, Lower McCarthy Hill, Lower Weija, Bojo Beach, Ada Kope, Tsokome and surrounding communities. Property owners and residents in the area are therefore advised to evacuate or take immediate precautionary measures to protect life and property. “Management of GWCL therefore wishes to inform the general

public as well as institutions and organizations who have properties downstream of the dam, that the opening of the spillway gates is inevitable and possibly cause flooding. Therefore, the company urges inhabitants living in communities downstream and along the buffer zone of the river course, to evacuate the area to

forestall any eventualities and also to protect life and property,” the statement added. GWCL has begun a house to house sensitization and using public information address systems within the communities, to caution settlers and residents on the repercussions of their continuous stay within the buffer zone. Opinion

leaders, Chiefs, Assemblymen, Unit Committee leaders and Heads of schools have been informed to help in sensitizing the people in the communities. GWCL is also liaising with institutions like National Security and NADMO to support the process to avoid disaster.

Leadership group discusses priority issues for African recovery

s Africa countries ramp up their responses to the novel coronavirus, increased collaboration between governments and development partners is needed to ensure urgent priorities are addressed for both immediate and long-term needs, according to one group of global experts. The Transformation Leadership Panel (TLP), an initiative of the African Center for Economic Transformation (ACET), held a virtual meeting on Wednesday, May 27, to assess the state of COVID-19 interventions in Africa so far, share lessons learned, and consider new avenues for policy action in support of African governments. “We are living in an extraordinary time, which calls for strong partnership, coordination, collaboration, and solidarity,” said former Liberian President Ellen Johnson Sirleaf, who serves as TLP Chair. “This is an opportunity for all governments—rich and poor, north and south—to think about reform that has been lacking for a long time.” Formed in July 2019, the TLP is a body of 17 eminent figures from Africa and around the world united by a shared vision and mission: to influence, support, and advise leaders on critical and necessary action to achieve economic transformation in Africa by 2030. The sudden and dramatic impact of the COVID-19 pandemic has given new urgency to policy measures

that will enable sustainable and equitable growth. According to the World Bank, growth in sub-Saharan Africa could contract by up to 5.1 percent in 2020. Over more than two hours, panel members highlighted a variety of priority issues that can help economies rebound more quickly in the short term while keeping Africa’s growth prospects—and transformation agenda—on track for the long term, including the need to ensure that financial resources directed toward pandemic recovery are managed in a transparent process and are accessible to those who need them. Other topics included accelerating digital innovation, encouraging business and investment, and mitigating the impact on vulnerable populations,

including women and youth. “Our intention is to work together to ensure African governments and their development partners remain engaged around these extremely relevant issues even as emergency measures continue to unfold,” said ACET founder and President Dr. K.Y. Amoako, also a member of the TLP. The inaugural meeting of the TLP was held in Accra, Ghana in 2019. Other members of the TLP include, in alphabetical order: Masood Ahmed, President of the Center for Global Development; Dolika Banda, CEO of African Risk Capacity; Charles Boamah, former Senior Vice President of the African Development Bank; Ann Cotton, OBE, Founder and Trustee of Camfed International; and Bineta

Diop, Africa Union Special Envoy on Women, Peace and Security. Hafez Ghanem, World Bank Vice President for Africa; Agnes Kalibata, President, AGRA; Acha Leke, McKinsey and Company’s Africa Region Chair; Stefano Manservisi, former Director-General, DEVCO, European Commission; and Ibrahim Hassane Mayaki, former prime minister of Niger & CEO, AUDA-NEPAD. James Mwangi, Managing Director & CEO of Equity Group Holdings; Ndidi Nwuneli, Co-founder and Managing Partner, Sahel Capital; Reeta Roy, President & CEO of the Mastercard Foundation; Vera Songwe, Executive Secretary of the UN Economic Commission for Africa; and Gayle Smith, President and CEO of the ONE Campaign.

MONDAY JUNE 1, 2020

Banking

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Banking in the next Decade - Digital banking culture

BY: EBENEZER ASUMANG, CAMS

“When did the banking industry decide that a consumer`s emotional experience is secondary to the devices it supports, the channels they promote and the payments they process?” Duena Blomstrom, Creator of Emotional Banking and Founder & CEO of PeopleNotTech

As financial institutions work to digitally transform their business, there is a need to go beyond simply buying new technology or deploying new solutions. To succeed, retail banking leaders must build a culture supportive of meeting consumers’ rapidly increasing expectations. Virtually all financial institutions in the world are focused on making their organization ‘more digital’. From overhauling back office operations to leveraging new technologies to increasing customer engagement, the requirement to understand and respond to the needs of the digital consumer has never been greater. In most cases, what’s required is large-scale change that typically takes years to accomplish. It would include new technologies, strategies, processes, skill sets and a complete disruption of legacy organizational structures moving from a product focus to a consumer focus. This digital transformation cannot occur without the rethinking of the back-office processes banks have had in place for decades, including a streamlining of operations and the integration of new data sets. But the most impactful transformation occurs with customer-facing engagement, including products, communication, customer-service tools and marketing strategies. In the end, it is all about creating

contextual engagement multiple channels.

across

Why Culture Shift is important While many banks focus on technological aspects of digital transformation, it is clear that culture is the most important key to success. Culture represents a shared set of values and behaviours that define how decisions are made and strategies are implemented. All C-level executives, the board of directors and, indeed, all levels of management throughout a financial institution must support the culture. A strong culture guides all employees to act in accordance with set guidelines supporting the DNA of the brand as well as the institution’s goals and strategies. Ignoring culture as part of digital transformation puts the entire change process at risk while also impacting financial performance. A bank with a digital culture can make decisions and deliver results faster since the organization is more data-driven. Most digital organizations use technology to assist with performing more rudimentary tasks, enabling employees to make more complex decisions more efficiently. A digital culture is significantly more customer-centric, with latitude given for employees to make decisions on behalf of the customer. A digital culture also supports creativity and innovation again, on behalf of the customer. Now more than ever, organizations that are more digitally adept have the upper hand when trying to recruit the talent needed to excel in a digital economy. Millennials and individuals with advanced technical capabilities are much more likely to want to work at financial institutions that have built a reputation for providing a collaborative and creative

environment. With demand for digital talent far exceeding supply, being viewed as a digital leader has never been more important. Outlining a Digital Culture`s components While there is no exact science to what is required in a digital culture, there are several components that usually are present. Innovative. A digital culture is supported by a ‘hunger to learn with a permission to fail’ mentality, where employees are encouraged to embrace change while being risk aware. With data at the center of innovation, there is development of new ideas based on facts and trends. There is the encouragement to think out of the box instead of doing ‘business as usual’. Data-driven. Beyond simply using data and analytics to review past performance, a digital organization leverages real-time insights to drive instant shifts in decision making on a customer-by-customer basis. Consumer-focused. A digital culture is focused on the customer journey, where ideas can come from outside the organization and where improving the customer experience is central to all decisions. Collaborative. The working environment, both physical and virtual, is often not structured around products and services, but with intermingling of departments, functions and products. This ‘open’ structure supports agile decision making and much greater crossdepartmental interaction on behalf of the customer. Responsive. In a digital culture, there is an emphasis on speed. Adjustments to opportunities and threats are made incrementally based on market trends and consumer needs/behaviors. Flexibility, scalability and agility become vital assets, with perfection sometimes sacrificed for being first

in the marketplace with a solution. Transparent. Potentially one of the most important components of a strong digital culture is transparency. Individuals throughout the organization must feel safe to take chances, share ideas and interact in ways that may not have been the norm previously. In addition, management must clearly communicate all strategies, goals and objectives. In the end, a good strategy or great technology will not overcome a culture that is not in alignment with the transformation taking place. If leaders within an organization do not engage and get the support of employees at all levels, digital transformation efforts will fail. Leaders will need to embrace and display the change in behaviour desired, acknowledging and rewarding those who exhibit the correct mentality at every chance available.

Ebenezer ASUMANG (CGIA) worked extensively in mainstream banking and NBFIs. He is a Google Certified Digital Marketer, an Author and a Chartered member of the CGIA Institute, USA. www.ebenezerasumang.com /eben_asumang@yahoo.com/0242339145 LinkedIn – Ebenezer Asumang Facebook – Ebenezer Asare Asumang Twitter - @kwabenasumang Instagram – Ebenezer Asumang

MONDAY JUNE 1, 2020

ICT

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Digital transformation on warp speed BY OLUSEYI OLAOLU LALA Prior to the outbreak of the coronavirus (COVID-19), the question about who is leading the Digital Transformation (DT) in an organization has usually been a tussle between the Chief Executive Officer (CEO) and Chief Technology Officer (CTO) / Chief Information Officer (CIO) as ICT gurus argue for or against any of the C-level leaders. However, current trend has indicated that there is another C-level personnel that is now leading the rapid DT evolution for most organizations across multiple sectors and industry and that C-Level personnel is COVID-19. The pandemic has revealed so much about the exact positions some organizations are on the DT journey and I have listened to the various levels of responses. While some organizations (ICT, Education, Sports, Music/ Entertainment, Food, Religious groups, Transportation, Non/For Profit) could easily switch and pivot into this new reality seamlessly (simply because they had invested in the required technologies, people and processes), others struggled and are still struggling.

Figure 1

I know DT has become one of the latest technology lingos and in focus now, however there is a need to be clear about what DT is not. (Check Figure 2) For an organization, as you speed up your DT journey, please do it with the guidance of ICT strategists and experts (David and Taopheek come highly recommended). For an employee, you need to be on that journey too and on a faster track than your organization. To be ready for DT, you need to develop digital skills that will make you relevant in the new norm. In the short-term, the new norm is WFH (Work From Home) and some organizations have decided to continue WFH till end of 2020. You must plunge into it heads-on, it is never too late to learn new things and adapt your working pattern. I will talk about the future of work (#futureofwork) in another article. However, do note that DT is on warp speed.

WHAT IS DT? While trying to look for a simple definition of DT, I stumbled on a graphic on Institute of ICT Professionals, Ghana, portal and with permission, I am adopting the definition and graphic. Simply put, DT is the outcome of ITenabled (ICT-enabled) change that is aligned with achieving business objectives and driven by a wellplanned strategy.Just last week, another friend/boss of mine Mr. Taopheek Babayeju (CEO, iCentra Consulting) also did a webinar on this topic and he defined DT as “the process of using digital technologies to create new — or modify existing — business processes, culture, and customer experiences to meet changing business and market requirements”. He further said, “Digital transformation begins and ends with how you think about, and engage with, customers”. Finally, “Digital Transformation is about re-imagining your business in the Digital Age”. WHY DT? This question is now a no-brainer and has been answered by COVID-19. With the resultant effects of social (to me it is more physical) distancing and the need for contactless solutions required for business continuity, organizations are not wasting time to be convinced about DT. Prior to this, an ICT expert/

strategist will have to go through some or all the points below as they try to convince business leaders: • Technological Evolution (New Growth Curve) • Competitive Landscape (Innovate or Die) • New Venture Creation • Improve Customer Experience • Increase Business Productivity and Efficiency • Culture Change Not anymore!! Any organization that does not see the need for DT now, should not be in business. How to achieve DT? The transformation journey must be customized to the organization in question. However, below is a generic high-level building blocks I found very interesting made by ionology.

Figure 2

Figure 3

Oluseyi Olaolu LALA MBA, PMP Fixed/Mobile Broadband/Enterprise Solutions Expert | Project Manager | Leadership and Personal Development Enthusiast For comments, contact author shalomesq@gmail.com

MONDAY JUNE 1, 2020

Aviation

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Canadian Airlines refund troubles Finance Minister Transport Minister Marc Garneau says that Canadian airlines could go bankrupt if the ailing industry is compelled to refund passengers billions of dollars for flights cancelled due to the pandemic. “I have said many times that I have enormous sympathy for those who would have preferred to have a cash refund in these difficult circumstances. It is far from being an ideal situation,” Garneau told a press conference earlier today. “At the same time, if airlines had to immediately reimburse all cancelled tickets, it would have a devastating effect on the air sector, which has been reeling since the COVID 19 pandemic started.” Garneau was doubling down on a message he delivered to the House of Commons’ pandemic committee on Thursday, when he warned MPs that if airlines “had to reimburse at this time, some of them could fail.” The minister said today it’s his responsibility to help Canada’s airlines survive the pandemic. “It is so essential for this country,” he said. “This is the second largest country on Earth, with its distances and remote areas, and we expect and need an airline industry in this country.” But his response isn’t sitting well with Canadians struggling financially during the pandemic who argue it’s their right as consumers to get their money back for flights they never took. “It’s very disappointing and frustrating,” said Tammie Fang, a health care essential worker in B.C. “My rights as a consumer have been put aside to help balance the airline industry.” Fang works at a New Westminster hospital assisting with open-heart surgeries. She said she spends much of her spare time calling and emailing Air Transat seeking a refund of roughly $500 for a flight to Toronto she never took.

She describes it as an extra burden during an already stressful and financially challenging time. “It’s disheartening,” she said. “It’s unbelievable how much effort we have to put in.” Airlines’ survival versus consumers’ rights Canada’s airline industry has been hit particularly hard by the pandemic, and most of the country’s airline fleet is sitting idle at airports across the country. Airlines are losing 90 per cent of their normal revenue streams and some have put their operations completely on pause. At the same time, pressure is mounting on the federal government to step in and force airlines to pay back passengers who also are struggling financially. Two petitions with more than 30,000 signatures combined have been submitted to Parliament in recent weeks calling on the government to demand that airlines tapping into taxpayerfunded government supports reimburse grounded passengers. Billions tied up in refunds For the most part, Canadian airlines

are offering those passengers travel vouchers redeemable for two years. Air Canada also announced last week that it’s allowing people to transfer their tickets to others, which could permit ticket holders to sell them. The Canadian Transportation Agency has said offering vouchers could be a reasonable measure in the current circumstances. Garneau’s office said it would cost airlines billions of dollars to refund customers. When CBC asked Transport Canada for specific numbers, it was told the figures the government receives from airlines amount to proprietary information that it isn’t authorized to release. Air Canada’s books are open, since it’s a publicly traded company. It has about $2.6 billion tied up in ticket sales for future travel over the next year. On March 16, the airline said its current liquidity level was $6.3 billion — a record level — and its balance sheet was solid. Since then, Air Canada has said it’s burning $22 million a day in operating costs and plans to reduce its workforce by 50 to 60 per cent. The company said

a dramatic drop in demand during the pandemic caused the airline to slash its flight capacity by 95 per cent. Government in talks with airlines and consumers Outside Rideau Cottage today, Prime Minister Justin Trudeau repeated a message he’s delivered in the past — that the government has to strike the right balance between keeping airlines afloat and preserving consumers’ rights. “I hear clearly the concerns that Canadians have around their air tickets,” said Trudeau. “We will continue to work with the industry and with concerned groups of Canadians to ensure that we find a fair way through this. “But I know Canadians at the same time want to make sure we continue to have an airline industry after this very difficult pandemic.” The government is in talks with airlines and is looking to see what other countries have done with travel refunds. It’s expected to deliver an update on the file in the coming weeks. (source: www.cbc.ca)

Summertime fun: Emirates keeps kids entertained over the holidays Leisure travel is suspended and schools are out, but imagination has landed on emirates.com . The family-friendly airline has launched a special activity page on its website to keep kids entertained over the summer holidays. The Emirates Fly With me Animals, have been digitised so families can take advantage of colourful puzzles, stories and activities featuring friendly, familiar faces – all from the comfort of their own home. Decades of making air travel fun for little passengers has given the world’s largest international airline a wealth of experience in keeping children happy and occupied. Parents and kids can download and print out a 16-page Fly with

Me Animals colouring book to get re-acquainted with Lewis the Lion, Peek U the Panda, Ernie the Penguin, Savannah the Elephant, Brett the Bear, Mia the Manta Ray and ChaoChao the alligator. Connect with family and friends by sending a special message to those near and far, using one of the easily downloadable postcards or keep your most treasured snaps in a downloadable photo frame featuring the much-loved animals. Kids can learn to bake a tasty treat with a yummy banana cake recipe or go on an adventure with the Animals in a series of videos for children. The Fly with me Animals activity magazines are also available to download and each issue is filled

with puzzles and games making learning fun. Those missing the cuddly travel companions, can still visit the Emirates Official Store to purchase the toys and take them home. The curated activities were launched just in time for the summer holidays and are the perfect chance for kids to get extra creative and discover ways to make home-learning enjoyable. In the last year, Emirates presented 4.4 million ‘Fly with me’ kids’ toys and Lonely Planet bags and 3.7 million ‘Fly with me’ magazines and sets of colouring pencils on board, reaffirming its position as the preferred airline worldwide for family travel.

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Learning to Live with COVID-19 BY: NGAIRE WOODS AND LEANY LEMOS

eaders in the Brazilian state of Rio Grande do Sul have devised a strategy for living with the virus, based on key indicators, expert consultations, and enforceable processes. And it has done so in full public view. There are lessons here for governments in richer countries that have yet to develop such a plan. One of COVID-19’s paradoxes has been the way in which some wealthy, high-capacity countries (particularly the United States and the United Kingdom) failed to contain the virus, while some poorer countries and regions with less capacity (including Vietnam, Greece, and the Indian state of Kerala) swiftly brought it under control. Now that countries must plan beyond their lockdowns, an equally stark contrast has emerged. In the US and the UK, ambiguous containment regimes without clear exit plans have resulted in a policy stalemate between maintaining unsustainable lockdowns and recklessly opening up the economy. By contrast, policymakers in the Brazilian state of Rio Grande do Sul have used careful planning to learn to live with the virus.The state began preparing on March 2, when Governor Eduardo Leite tasked his secretary of planning, budget, and management with assembling a data committee to develop and implement a plan for keeping the state’s economy going while combating the spread of the virus. In many other parts of Brazil, the virus remains unchecked, and the country now has the world’s second highest number of COVID-19 cases and the sixth-highest death toll. Yet, its fifth-most populous state has responded in a way that many rich countries would do well to emulate. Five components of Rio Grande do Sul’s response stand out.First, Leite focused from the outset on avoiding the worst possible outcome, rather than simply hoping it would not materialize. Before the pandemic reached Brazil, state officials used data from both Japan and Singapore (where the virus’s impact was limited) and Italy and Spain (where it was horrific) to generate mathematical projections, and set out to avoid outcomes resembling the latter. The governor then announced restrictions in midMarch before the state had reported its first COVID-19 death, thus buying time to strengthen the health system’s capacity while slowing the virus’s spread. Second, state officials took a datadriven approach to tracking the virus, investing not only in collecting more data, but also in improving systems and hiring outstanding talent to assess the information. The data committee divided the state

into 20 regions, each of which has a main hospital with an intensivecare unit (ICU), and has monitored 11 indicators in each region every week. About half of the indicators measure the virus’s spread. They include the number of new hospitalized COVID-19 cases (compared to the previous week), the number of active cases relative to recoveries in the last 50 days, and new hospitalizations and deaths per 100,000 inhabitants. The committee also tracks the number of patients in regular and ICU beds with either COVID-19 or acute respiratory distress syndrome, a related lung disease (because COVID-19 cases are typically under-recorded).The other indicators measure the capacity of each region’s health system. They include the number of available ICU beds relative to both the total population and the number of inhabitants aged over 60, as well as the change in ICU occupancy compared to the previous week. In addition to intensive data monitoring, the data committee convenes health experts and academics on a pro bono basis and makes their reports public. More than 150 experts from government and academia are currently examining COVID-19’s impact on economic activity, social vulnerability, infrastructure, and mobility in the state. Furthermore, the government created a partnership with a university early on to kick off random testing and surveying habits across the state, which is providing a better sense of the real prevalence of the virus. The third component of the state’s response is a simple, specific, and transparent alert system. Each

week, the committee distills the 11 indices into a single figure for each region, which places the region in one of four risk categories. Yellow represents low risk, orange is medium, red is high, and black signifies very high risk, with a full lockdown expected in extreme cases. Because the public can examine the data on which the risk classifications are based, the system helps to build understanding and trust. Fourth, officials carefully examined how to keep the economy functioning, because the already-indebted state could not afford to support out-of-work people for long. The committee has clearly segmented jobs and economic activities in terms of worker safety (given socialdistancing requirements) and their economic importance, giving these factors weights of 70% and 30%, respectively. For example, agriculture is relatively safe, because workers are outdoors and a safe distance from one another, and it is also vital for Rio Grande do Sul’s economy. All of the information is publicly available.Finally, the state government drew up return-to-work protocols for each industry based on consultations with occupational health experts, industry associations, businesses, and workers. By publishing early drafts of protocols and inviting comments, the committee helped to ensure an open and transparent process. Beyond mandatory measures such as wearing facemasks, cleaning, distancing, and shielding at-risk groups, sector protocols vary depending on the alert level. For

example, industry can function at 100% capacity in a yellow region, at 75% under an orange alert, 50% in red regions, and 25% in black regions, with exceptions for essential sectors such as food, energy, chemicals, and health. Retail, which poses a higher contagion risk, may operate at only 50% capacity under a yellow alert, and must close down under a black alert.While buses and churches have varying seat restrictions depending on the alert level, no mass events are currently permitted. The state is now debating which educational institutions should reopen first, and when, and how to reopen the rest. Rio Grande do Sul’s work-safety policies have now been in place for three weeks. As of the last week of May, less than 20% of the state’s COVID-19 ICU beds are in use. The state has 56 cases per 100,000 inhabitants, compared to 720 per 100,000 in Amazonas state, 390 in Ceará state, and 220 in Rio de Janeiro. And its COVID-19 mortality rate is 1.6 per 100,000 inhabitants, far below the rates in Amazonas (42.4) and Rio de Janeiro (23.1).Rio Grande do Sul’s leaders have devised a strategy for living with the virus, based on key indicators, expert consultations, and enforceable processes. And it has done so in full public view. There are lessons here for governments in richer countries that have yet to develop such a plan.

Ngaire Woods is Dean of the Blavatnik School of Government at the University of Oxford. Leany Lemos is Secretary of Planning, Budget, and Management in the state of Rio Grande do Sul, Brazil.

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COVID- 19 and Green Business in Africa BY CHIPO MUKONZA, ROBERT E. HINSON

On March 24, 2020, the Time Magazine carried an article entitled “What Coronavirus means for the possibility of a carbon-free economy” and argued that deep investment in renewable projects would put people to work in the short-term and create decarbonised energy systems better able to compete in the 21st century in the long-term. This sort of forward-looking thinking is needed in both developed and emerging contexts to ensure that even in the light of the COVID-19 pandemic, policy makers and business people still work to create green businesses and a globally safe environment for all. This article interrogates the Impact of COVID- 19 on green businesses in South Africa and Ghana. Socio-Economic Impacts of COVID-19 COVID-19 was declared a pandemic by the World Health Organisation (WHO) on March 11, 2020. The virus has exposed the fragile nature of many economies on the continent and their inherent structural and systematic inequalities. The personal, social and economic impact of COVID-19 is unlike anything experienced by the world in the past 75 years. South African and Ghanaian businesses, established on the back of an integrated global trade network, have been heavily exposed by the deadly respiratory disease. This has shown how the interconnected systems interact to deliver goods and services around the globe. According to various studies, what the pandemic has revealed is that our reliance and dependence on international trade and supply chains (exogenous effects) are vulnerable to sudden and unexpected disruption and unfortunately this cascades down from one system to another. Endogenous effects, as a result of COVID-19, lead to a disruption of economic activities resulting in low mobilisation of domestic taxes and a decrease in foreign exchange due to the slump in prices of major export commodities on the international market. There is, however, an increase in public expenditure to safeguard human health and support economic activities. COVID-19 and the Green Economy More so, the pandemic has exacerbated the climate change crises and presented trade-offs to economies that were doing well with the green economy agenda. As countries are forced to deal with the current pandemic crisis, what comes to mind is: (1) what happens to greening the economy? (2) How

Source: IMF, UNECA, GoG & Deloitte Analysis

have green businesses, especially small green businesses, been affected? The financial stimulus packages proposed in response to the pandemic and being rolled out, how green are they? Drawing from the systems and complex theory this article sought to understand the impact of COVID-19 on small green business and the opportunities that exist going forward in the sector. COVID-19 is particularly damaging to SMEs because most of these businesses rely on social interaction, like hotels, restaurants, drinking bars, chop bars, small retail shops, hairdressers, barbers, builders, musicians, taxi drivers, and street hawkers. Most economies have been forced to go into lockdown to enforce social distancing and behavioural change. This has stopped all revenue generating activities. In South Africa, the latest quarterly Labour Force Survey found close to three million people were working in the informal sector, or around 18 per cent of total employment. This informal workforce is often the only source of income for many more households, ensuring that they stay above the poverty line. Urban dwellers are further impacted by the already rising food prices both driven by panic buying and the disruption of food supply chains, through border and transport closures. During the 2014 outbreak of Ebola Virus Disease in West Africa, social unrest emerged in some of the affected countries, creating a vicious circle leading to even greater fragility. There is thus a need to tackle underlying fragility

factors while addressing immediate needs arising from the pandemic. The worldwide disruption caused by the COVID-19 pandemic has had a profound impact on the environment. The severe decline in planned air travel, road transport, and a general decline in economic activities have led to clean skies and decreasing levels of certain air pollutants. Despite a temporary decline in global carbon emissions, the International Energy Agency warned that the economic turmoil caused by the coronavirus outbreak may prevent or delay companies from investing in green energy and green businesses. Falling costs and strong policy support have made renewables increasingly attractive and competitive in many economies, but they now face three main challenges from the coronavirus crisis: supply chain disruptions that can lead to delays in completing projects; the risk of being unable to benefit from government incentives that end this year; the likely decrease in investment because of pressure on public and private budgets combined with uncertainty over future electricity demand. The COVID-19 pandemic thus provides an opportunity to address other emergencies such as climate change, green businesses and promoting green energy more effectively. This is sometimes characterised by researchers as not just bouncing back, but “bouncing forward.” COVID-19 is a re-evaluation and re-wiring opportunity. Past

experience suggests that emission declines during economic crises are followed by a rapid upsurge; the 2008 global financial crisis is a typical example. A coronavirusinduced drop in world emissions will mean very little in the long run on its own. The economic recession caused by the COVID-19 pandemic underscores the need to invest heavily in a greener economy to create jobs and reduce inequalities. In response to the pandemic, several countries have introduced measures related to working time shortening, temporary lay-off and sick leave; some targeted directly at SMEs. Similarly, governments provide wage and income support for employees temporarily laid off, or for companies to safeguard employment. In many cases, countries have introduced measures specifically focused on the selfemployed. In order to ease liquidity constraints, many countries have introduced measures towards the deferral of tax, social security, debt, rent and utility payments. In some cases, tax relief or a moratorium on debt repayments have been implemented. Also, some countries are taking measures regarding procedures for public procurement and late payments. Ghana has put in place the following tax deferral measures to mitigate the impact of the pandemic on businesses: ●Extension of due dates for filling of tax returns from the standard four (4) months to six (6) months after end of the basis year; Grant of waiver of penalties on principal tax liabilities owed by taxpayers who redeem their outstanding liabilities by June 30, 2020. ● Waiver of VAT on donations of stock of equipment and goods for fighting the Covid-19 pandemic. ● Waiver of taxes on selected withdrawals from third-tier pension funds. ● Grant of deduction against income tax for private sector contributions and donations made towards addressing the COVID-19 pandemic. ● Institution of an email filing and direct transfer payment system to allow taxpayers file and pay taxes with the various Ghana Revenue Authority (GRA) offices remotely. South Africa has also instituted similar measures. They include: 1.An increase in the expanded employment tax incentive amount from R500 to R750 per employee. 2.A skills development levy holiday of four (4) months from May 1, 2020. 3.Fast-tracking VAT refunds. 4.Deferring the payment of excise duty on alcoholic beverages and tobacco products. 5.A three-month deferral for filing and first payment of carbon tax liabilities to 31 October 2020.

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Ethiopia’s unconventional COVID-19 response BY ARKEBE OQUBAY To the surprise of many, African governments have responded swiftly and boldly to the COVID-19 crisis. Ethiopia’s unconventional approach, for example, reflects the country’s limited financial and human resources, as well as the low level of available international support. Despite these severe constraints, the results so far have been better than anyone expected. From the start, Prime Minister Abiy Ahmed’s government understood that Ethiopia’s success in combating COVID-19 would depend not on the number of respirators it had, but on the public-health measures taken to contain the virus’s spread. His government also wanted to prevent serious damage to one of Africa’s fastest-growing economies, which expanded at a 10.5% average annual rate in 2004-18 but remains vulnerable. Safeguarding these gains, preventing job losses, and ensuring firms’ survival was critical. So, instead of implementing a national lockdown like most other governments, including in Africa, Ethiopia initiated other essential measures in January, well ahead of most developed countries. The government then scaled up its response in mid-March, when the first COVID-19 case was reported in the country, and declared a state of emergency only on April 8. Moreover, it has encouraged production and other economic activities to continue during the crisis, thus considerably easing the pressure on vulnerable social groups and the informal sector. The results so far are salutary, though we fear the worst may be yet to come. As of May 26, Ethiopia – with a population of 109 million – had reported only 701 cases and six deaths. That represents an infection rate of 0.8% among the tested population, 80% of whom are 24-44 years old. The government’s rapid initial response was crucial. In January, it introduced strict passengerscreening protocols at Addis Ababa’s international airport, East Africa’s largest aviation hub. The Ministry of Health and local and regional governments jointly conducted house-to-house screenings of more than 11 million households containing 40 million people in the capital and provinces. And diagnostic testing was scaled up from zero in early March to over 5,000 tests per day by May, though it continues to be a major challenge. Public awareness and education have been central to the government’s effort. The prime minister makes regular public announcements regarding COVID-19, while the health minister provides daily briefings. And, as part of a concerted media campaign to reach all citizens, state-owned telecoms monopoly Ethio Telecom

uses cell-phone ring tones to remind people of the importance of hygiene measures such as hand washing, social distancing, and wearing facemasks. This platform has shown positive effects. Furthermore, since February, the Ethiopian authorities have implemented a strict regime of rigorous contact tracing, isolation, compulsory quarantine, and treatment. The government converted public universities’ dormitories to increase the capacity of quarantine centers to over 50,000 beds, established additional isolation centers with a total of 15,000 beds, and set up treatment centers with a 5,000bed capacity. It also introduced more comprehensive life insurance coverage to protect front-line health workers. Whereas many advanced and emerging economies have introduced huge economic-stimulus and rescue plans, the Ethiopian government has been constrained by dwindling revenues and the need to reallocate budget expenditures to contain the pandemic. It cannot please everyone, and therefore has had to prioritize its modest resources. The government’s COVID-19 economic-support package is based on the principle of shared costs and sacrifices. For example, the employers’ confederation, labor unions, and the government agreed on a tripartite protocol to prevent layoffs during the crisis. Government subsidies have enabled manufacturing exporters to benefit from zero-cost rail transport and lower export logistics costs. And the government’s new industrial-parks strategy envisages the establishment of manufacturing hubs to produce personal protective equipment for

domestic and overseas markets. Ethiopia continues to mobilize national resources and encourage voluntary activities to address the public-health emergency, with the government ensuring close coordination among federal agencies at all levels. And although the government’s pandemic response is a work in progress, its success so far illustrates what African countries can achieve despite tight resource constraints. First and foremost, African governments must recognize that they are facing not only a public-health emergency, but also a multi-dimensional crisis with long-term implications. Standard policy prescriptions therefore will not work. Tackling the crisis requires not only local and national government responses that take each country’s unique context into account, but also unified regional and international action. Second, the Ethiopian government has relied heavily on community mobilization and public-awareness campaigns, which have proved to be effective and cost-efficient. It has also relied on the country’s prevention-based primary public health-care infrastructure and the health extension system that was built up during the last two decades. Third, the government ensured a coherent response by maximizing coordination among public agencies at different levels. It also engaged in dialogue with the private sector to find workable solutions when global brands and buyers abandoned their suppliers in developing countries. Fourth, resource-constrained African countries cannot provide government and charitable support to all groups and firms. Governments must prioritize and target their limited resources at

companies, and tie that support to performance criteria in order to incentivize vital social goals like employment retention. Learning what works and what does not in that regard has been a vital catalyst in Ethiopia’s response. Finally, it is too early to judge the pandemic response mounted by Ethiopia and other African countries because governments still have to scale up their efforts to tackle the inevitable “surge” stage of the crisis. But one lesson is already clear: African governments’ COVID-19 strategies must reflect the local context, the evolving nature of the pandemic, binding resource constraints, and weak international collaboration.

Arkebe Oqubay, a senior minister and special adviser to the prime minister of Ethiopia, is a distinguished fellow at the Overseas Development Institute and the author, most recently, of African Economic Development: Evidence, Theory, Policy and The Oxford Handbook of Industrial Hubs and Economic Development. Copyright: Project Syndicate, 2020. www.project-syndicate.org

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Landmark in Volkswagen-Ford global alliance •

Volkswagen AG Supervisory Board approves further projects • Volkswagen and Ford anticipate signing final agreements in the areas of electrification and commercial vehicles in the near future The Volkswagen AG Supervisory Board approved further contracts under the cooperation with Ford Motor Company announced last year. The next milestones in the vehicle projects are anticipated to be implemented in near the future with the signatures of both companies. Three projects in the areas of electrification and commercial vehicles are planned to be realized as a first step. The Volkswagen-Ford global alliance – which does not involve cross-ownership between the companies – is expected to create annual efficiencies for each company. Pending formal completion, the

proposed agreement is expected to encompass the following projects: Volkswagen´s Modular Electric Toolkit (MEB) will be used by Ford for an electric vehicle in Europe; a midsize pickup developed by Ford and adapted by Volkswagen Commercial Vehicles in selected

markets; and two further vehicle projects to be implemented: Volkswagen Commercial Vehicles will be responsible for the development of a city delivery van, while Ford will oversee planning for a van in the one-ton loader segment.

Additional projects may follow, as well as the investment in Argo AI, the autonomous vehicle platform company. Through the cooperation, both manufacturers plan to realize significant synergy effects from shared development costs as well as production synergies.

Spain’s PM pledges support for automotive sector after plant closure

Not right time to seek GST rate cut on automobiles: Maruti Chairman

Spanish Prime minister Pedro Sanchez said on Sunday the government will launch an aid programme for the country’s automotive industry following a decision by Japan’s Nissan Motor Co to close its plant in Barcelona. Last Thursday Nissan announced it would shut the plant employing 3,000 people from December as part of global cost cuts, prompting angry demonstrations by workers. Sanchez told a press conference

India’s largest carmaker Maruti Suzuki India (MSI) has said a GST rate cut on vehicles does not make sense right now with auto industry production levels at record low level. The company, which has around 54 per cent market share in the domestic passenger vehicle segment, said that rate cut if any has to be considered at the right time. “At the moment, as we stand today, at least for the next month or two months the production volume of all automobile makers is going to be very low. At this point a GST cut won’t make a sense,” MSI Chairman R C Bhargava told reporters in video conference.

that at the next cabinet meeting his government would agree aid to improve competitiveness in the automotive sector, and propose tax and labour benefits as well as ways to improve company liquidity. Earlier the government said it could seek an alternative partner to keep the plant open. (Reuters)

He was responding to a query whether it was the right time to seek GST rate cut for the industry which has been impacted by the coronavirus pandemic. Bhargava said the GST rate cut will become relevant really when production can actually be increased to higher levels and where the supply is going to be in excess of demand. “Then only it will make sense. So the government has to look at it, the industry has to look at it as to what is the relevant time to do it. Certainly not immediately,” he noted.

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The limits of extreme COVID monetary policy BY PAOLA SUBACCHI

With output having collapsed as a result of the COVID-19 pandemic, many are wondering how far monetary policy can be stretched to support the economy. For the US Federal Reserve, negative interest rates appear to represent an effective limit, not because such a policy is technically unfeasible, but because it would be politically unacceptable. Yet for the European Central Bank, the Bank of England, and the Bank of Japan, there appears to be no limit. The ECB has long since cut rates into negative territory, and BOE Governor Andrew Bailey is reportedly “looking very carefully” at that option for the United Kingdom. Likewise, BOJ Governor Haruhiko Kuroda, while deeming the BOJ’s current policy mix appropriate for current conditions, has not ruled out further monetary easing or another increase in asset purchases. The question is whether it makes sense to go further down the road of extreme monetary policy. Former ECB President Mario Draghi’s famous promise to do “whatever it takes” to support the euro has now become the mantra for all policymakers confronting the current crisis. But wouldn’t expanding fiscal policy be a better way to fulfill that commitment? To paraphrase Fed Chairman Jerome Powell, central banks have lending power, not spending power – and spending is what is needed. In the current crisis, it is imperative that money reach those most in need as quickly as possible. Unemployment is at a record high in many countries – more than 20 million people in the United States lost their jobs in April alone, pushing the US unemployment rate to 14.7%, and putting it on track to reach 20-25% this year. Under these conditions, what the US and most other countries need is a broad, sustained fiscal-policy push, undertaken in coordination with monetary policy. Without that, a prolonged recession and sky-high long-term unemployment will become much more likely. A fiscal expansion should have two primary objectives. First, it must help individuals, households, and firms weather the crisis. In this respect, the fiscal-policy measures adopted in the US and other advanced economies have been on the mark. In late March, the US Congress approved a $2 trillion stimulus package to support households, firms, and health-care providers, and Democrats in the House of Representatives have now passed another package proposing $3 trillion in additional spending. Meanwhile, in the European Union, budget rules have been

suspended, allowing memberstate governments to pursue more ambitious discretionary fiscal measures, from spending increases and tax relief to wage support and subsidies for small and medium-size enterprises. The second objective of fiscal expansion is to drive economic recovery by supporting domestic demand. Here, unfortunately, the policies on offer have fallen far short, raising the risk that we will repeat the mistake made after the 2008 global financial crisis, when fiscal stimulus was withdrawn too soon. On that occasion, relying on fiscal policy to stimulate demand was declared politically unfeasible. Although the downturn was still considered large enough to warrant exceptionally loose monetary policies, the political establishment in the US, Britain, and much of Europe coalesced around austerity, smothering the recovery in its cradle and setting the stage for rising inequality and social discontent. This time around, the major central banks have been quietly pushing for “additional fiscal support” in order to “avoid longterm economic damage” and bring about a “stronger recovery.” Such support is also needed to alleviate the pressure on central banks. Meanwhile, there are good reasons to avoid going down the road of more extreme monetary policy. For starters, extreme monetary policies tend to limit the scope for future policy signaling and reduce the effectiveness of interest rates, which, under normal conditions, are powerful tools for influencing

output and employment. Second, they could exacerbate the prepandemic vulnerabilities that were already threatening the world economy, not least the build-up of debt, the misallocation of credit, and excess liquidity in the corporate sector (where too many firms have problematic balance sheets). These concerns lead to the third point: the further easing of credit conditions and expansion of publicsupported credit programs could push more debt onto firms that are in no position to turn it into value. Bankrupt “zombie” firms would be kept artificially alive. Even if such measures preserved jobs for now, that doesn’t mean they are the most effective use of financial resources. Japan’s “lost decade” should serve as a cautionary tale. The longer zombie firms stagger on, the greater the losses will be when they eventually collapse. Finally, relying on monetary policy when fiscal policy would be more appropriate risks reinforcing investors’ excessive preference for liquidity, thereby deepening the liquidity trap. It should go without saying that extreme monetary policies can generate extreme and unexpected consequences. Though unconventional monetary policy has now become the norm, we still are not quite sure how it works, or how it affects people’s expectations and behavior. To be sure, if the scope for monetary policy is limited, the space for fiscal policy is also narrow. But the current emergency and the threat of a deep recession (or even a depression) undoubtedly calls for bold, “unconventional” fiscal

policies supported by other tools, such as the European recovery fund that France and Germany recently proposed, and innovative capitalmarket instruments like perpetual bonds, which have also been proposed for the EU. Exceptional times demand exceptional measures. But we must avoid repeating the mistake made in 2010, when governments slammed on the fiscal-policy brakes while keeping the monetary-policy engine in high gear. Now more than ever, it is imperative to prevent existing inequalities from deepening further. Only fiscal policy can advance that goal.

Paola Subacchi, Professor of International Economics at the University of London’s Queen Mary Global Policy Institute, is the author, most recently, of The Cost of Free Money. Copyright: Project Syndicate, 2020. www.project-syndicate.org

MONDAY JUNE 1, 2020

(…CONTINUED FROM PAGE 17) 6.A postponement of some of the corporate tax proposals in this year’s Budget on interest expenses and assessed losses. 7.An increase in the deferment of employee’s tax 8.An increase in the turnover threshold for automatic deferrals. 9.A Solidarity Fund has been set up which so far has spent R1 billion on personal protective equipment. 10. Expanded access to living annuity funds by allowing individual to adjust the proportion they receive as annuity income, instead of waiting up to one year until their next contract anniversary date. In addition to the above measures, the South African government is seeking input on “financing a sustainable economy”. This is a framework for financial institutions to better disclose public information on their green practices and investments. Such information is critical for various stakeholders, including investors, trade unions, financial sector industry associations, regulators and nongovernmental organisations,

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and enables them to assess how financial institutions are taking account of climate change and other environmental and social risks. The raft of measures, implemented by governments to mitigate the impact of COVID-19 on businesses and individuals, have made the fiscal weaknesses which were present going into the crisis, more pronounced. This then follows that, there will be rising debt to Gross Domestic Product (GDP) levels and the rapid growth in interest costs as a share of total spending, squeezing out spending on other priorities. Unsustainable state-owned enterprises are also putting enormous pressure on the revenue envelope. However, the current challenges present exciting opportunities for governments to institute a green and inclusive recovery package and rewiring for green businesses. Green opportunities in the light of COVID-19 Opportunity for green stimulus packages Governments have a unique chance for a green and inclusive

recovery that they must seize. This is a recovery that not only provides income and jobs, but also has broader goals, integrates strong climate and biodiversity action, and builds resilience. An inclusive, green recovery is possible in the midst of a pandemic and post COVID-19! Stimulus packages need to be aligned with ambitious policies to tackle climate change and environmental damage. Only such an approach can deliver win-win policies for people, planet and prosperity. Opportunity for rewiring for green businesses Governments will need to intentionally design economic recovery packages that support the most vulnerable and promote innovation and clean technologies as the moving force of the economy, while withdrawing subsidies from polluting industries. Businesses will need to decarbonise their operations and investors their portfolios. Individuals will need to change their diets, consumption patterns and travel behaviour. We have learned that individual effort actually does count.

Green construction COVID-19 presents a unique opportunity to shift the course of the building sector and earmark investments for green construction. There is need to urgently change the path of the building sector to move towards green buildings, or even zero-carbon buildings. The principles of environmental, social and corporate governance (ESG) are more relevant now than ever. If ever there was a time for companies to demonstrate their commitment to greening the environment while addressing the economic and social concerns of all stakeholders in the business model, it is now.

Dr. Chipo Mukonza is Managing Director of RC Global Research Training and Consultancy in South Africa. Email: feedback@rc-global.org. Prof. Robert E. Hinson is the Head of the Department of Marketing and Entrepreneurship at the University of Ghana Business School. Email: rhinson@ug.edu.gh

Relief for final-year students as school restrictions eased BY BENSON AFFUL President Akufo-Addo has directed the reopening of schools for all final-year students, after a nearly three-month-long closure when the country recorded its first cases of the global coronavirus pandemic. The president, in his 10th address to the nation on Sunday, said the decision was taken “after engagement with the teacher unions to reopen schools and universities to allow for final-year Junior High, Senior High and university students to resume classes ahead of the conduct of their respective exit examinations.” According to the directive, finalyear university students are to report to their universities on June 15, final-year SHS students together with SHS 2 Gold Track students on June 22, and final-year JHS students on June 29. However, the President directed that JHS 3 classes will comprise a maximum of 30 students, while SHS classes will have a maximum of 25 students. University lectures will take place with half the class size. “All final-year students of educational and training institutions which are being managed by ministries other than the education ministry are to return to school on 15th June to complete their exit examinations,” he said. The President was, however, quick to say that all other educational facilities, private and public, for non-final-year students, will remain closed.

In the wake of the coronavirusinduced closure of schools and disruption to the academic calendar, several education watchers have advised the Ministry of Education (MoE) to consider using the continuous assessment method to grade BECE and WASSCE candidates in the absence of written examinations, which for now remain suspended. Yesterday’s directive by the

President will mean that final-year students can now heave a sigh of relief as they are now rest assured of their respective exit examinations. This year marks the first exit examination for the first batch of Free SHS students, with about 400,000 students expected to graduate from various senior high schools across the country. President Nana Akufo-Addo has always encouraged beneficiaries of

the Free SHS policy to shame critics of the programme by obtaining good grades when they sit for the WASSCE this year. According to him, the only way beneficiaries can prove the effectiveness of the policy is to work hard to secure quality results when they sit for the examination.

MONDAY JUNE 1, 2020

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Airlines face anxious wait for border opening International airlines operating in the country will have to wait much longer to restart their operations, as President Nana Addo Dankwa AkufoAddo has by Executive Instrument extended the closure of all borders-land, sea and air--indefinitely. This also means that individuals and families are unable to travel in or out of the country by scheduled commercial flights. “Our border, by air, land and sea, remains closed until further notice for human traffic. However, given that there are Ghana residents stranded abroad, special dispensation is going to be given for their evacuation back to Ghana, where they will be subjected to the mandatory quarantine and safety protocols,” President AkufoAddo said in his 10th update to Ghana’s enhanced response to the coronavirus pandemic. With Terminal 3 of the Kotoka International Airport (KIA), which is used for all international flights, closed to traffic—except for preapproved evacuations—and with aircraft parked in hangars and

airline offices vacated, international airlines have been counting their losses. Collectively, international airlines have lost an estimated US$400m in potential earnings since the coronavirus pandemic forced the

closure of the country’s air, land and sea borders on March 22. While it remains uncertain when the airport will be re-opened for scheduled passenger services, airlines have had to rework their models as specific segments of the

market are lost. Corporate organisations that have long-standing contracts with airlines are now resorting to video conferencing to hold their meetings and discouraging staff travels.

ICUMS takes over at Tema Port today Effective today, June 1, 2020, all transactions related to the import and export of goods at the various ports will be conducted through the one-stop service for all customs clearance procedures, dubbed Integrated Customs Management Systems (ICUMS). This follows successful simulation and piloting of ICUMS at Tema Port, the final port to be hooked onto the system. With the exception of Tema Port, ICUMS has been operating at all entry points across Ghana for over a month now. ICUMS is a system built by Universal Pass (UNI-PASS), specially tailored to Ghana’s situation and provides an end-to-end supply chain solution that incorporates and consolidates existing systems currently in operation. Ghana Link Services Limited, which has a 10-year contract with the Government of Ghana as technical partner, contracted CUPIA of Korea to deploy its electronic customs management system, called Universal Pass (UNIPASS) which is now known as the Integrated Customs Management System ICUMS, for Ghana’s trade facilitation. The system, deployed by Ghana Revenue Authority (GRA), replaces the Ghana Customs Management System GCMS. This means that GCNet and West Blue Consulting cease to operate at Ghana’s ports from today. ICUMS, essentially, is an electronic customs clearance system which computerises customs procedures and provides for the automation of the clearance process as a solution to overcome the increased volumes

in trade and travellers given the limited resources available. ICUMS is currently operating in countries in Africa, South America and Asia, including Korea, and is composed of 77 modules. These include processes such as Manifest input, Classification and Valuation, Cargo Handling and Clearance, Free Zones, Transit and Bonded Warehousing, Human Resource Administration, and Risk Management. It also has five subordinate systems: A Single Window (SW) system, a clearance management system, a cargo management system, an information management system, and an administration system. With the new system deployment, all new Bill of Entry for import/ export/transit will have to be processed through the ICUMS. To have business continuity and smooth transition, the Ghana Revenue Authority GRA has put in place a process flow to allow freight forwarders to get the release of their cargo which had it Bills of Entry (BoEs) processed in Ghana Customs Management System (GCMS). This process flow is to ensure that the business at the Tema port is not cut abruptly or create congestion. This information has been shared with all Freight Forwarders and Clearing House Agents, Shipping Lines, Terminal Operators, Consolidators and all other stakeholders including the MMDA’s. ICUMS is a departure from the previous system ICUMS is a departure from the previous system where ‘valuation and classification’ and ‘risk management and payment’ were

handled by different entities. “The decision to discontinue the services of GCNet and West Blue was informed by the need to replace the multiplicity of vendors with a single service provider deploying an end-to-end system,” according to a statement issued by GRA in announcing the plan. “The UNI-PASS technology has been deployed successfully in Tanzania since 2015 under the name Tancis, which the World Customs Organisation (WCO) has acclaimed as one of the best innovative trade facilitation systems. Cameroun, like Ghana, has deployed the same technology after successfully developing its system early this year,” according to a GRA statement issued in late April 2020. Help Desk and Call Centre Ghana Link Network Services Limited has assembled a committed and well-trained personnel who stand ready to provide technical support and help to anyone who will have any challenged from today. These men and women are capable of handling our sophisticated state of the art Information technology facilities, as well as being committed to providing professional service.

State-of-the-art data centre to manage both legacy and new data A state-of-the-art data centre, backed with fast internet link, has been established at the Ministry of Finance to manage both legacy data, as well as new data to be acquired by the ICUMS. The Vice Chair and Technical Committee head, Ghana Institute of Freight Forwarders (GHIFF), Tema branch Johnny Mante asked freight forwarders to be calm as the new Integrated Customs Managements System ICUMS is an end-to-end single window solution which will make their work even easier. “I will ask our members to be calm as the takeover begins today. We admit that there may be some challenges, but that is normal with new systems but what we should be doing is to follow the process flow that has been published and given to your members. It is a fact that there will be some manual release but that is for those of you who have done payments using the old Ghana Customs Managements Systems GCMS. Lets all corporate and do what we are told and everything will be fine.”

MONDAY JUNE 1, 2020

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Risk & Insurance

Vital safety considerations for re-occupying office buildings post-COVID-19

BY SAMUEL KOFI OHENE Buildings that were once fully occupied by employees are now vacant or operating with limited staff. This undoubtedly increases the risk of fire, theft, water damage and vandalism. It also may delay the time it takes to identify and respond to those issues as well, opening an organization up to the risk of small exposures leading to catastrophic and costly damage. Now is the time for organisations to take proactive steps in managing risks resulting from idle property, and prepare for when it is time to reoccupy facilities fully. While portions of a facility remains idle, if accessible, periodic inspections should be conducted as frequently as possible to assess any possible damages due to its idle state. This is a vital step to ensure that any damage or vandalism is identified in a timely manner and does not turn into a larger problem. At a minimum, a thorough facility inspection includes four key assessments: Exterior building inspection: Examine the outside of the facility to identify possible signs of unlawful entry or vandalism, clogged drains or any maintenance needs. Check for clogged roof drains or downspouts that could have been caused by storms during the idle period. Interior building inspection: check all areas of the interior of the building, with a close eye on the fixtures and fittings. For example, ensure that all ventilation and air conditioning systems are functioning. Ensure fire systems such as alarms or sprinklers and

electrical fittings are in good shape despite the idle period. Water damage visual identification: Take a close look to see if there is any undetected water damage. This includes looking for water on the ground, stained ceiling tiles and other wet interior surfaces. Ensure there are no burst or leaking water connections that may go unnoticed due to the facility being unoccupied. Returning to an idle facility When it is time to reoccupy the facility, a careful assessment of conditions and systems is important to ensure restoration proceeds smoothly. This is particularly important when restoring utilities and bringing production equipment back online. Even with a robust plan for monitoring and physical inspections during the idle period, hidden problems may only present themselves during the restoration process. At a minimum, systems that should be inspected by qualified personnel or vendors upon return include: Plumbing: Get a professional plumber to inspect the plumbing systems of your office building. If possible, restore systems section by section to enable you easily identify any faults where they may be. Fire: Ensure fire protection systems are in good working order and operating normally. This is a good time to schedule periodic maintenance and inspection by a qualified contractor to ensure no issues have developed. Electrical-If electrical systems or portions of the electrical distribution were disconnected, these should be restored gradually (with no/minimal load) to reduce the risk of surge that can damage equipment and

electrical components. Equipment-If production equipment was idle, follow the manufacturers’ instructions for restoring equipment to normal operating conditions. With detailed inspection and restoration, businesses can help mitigate liability for idle property risks. Throughout a period of vacancy, it is crucial that businesses communicate often with qualified personnel and/or qualified vendors to ensure that they have the resources required to be properly maintaining their facility until they can return occupancy fully.

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POST COVID-19 Insurance Tips •

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Review your life insurance contract. Read your life insurance contract again and confirm if it covers you & your dependents on pandemics such as covid19 or it is classified as an exception. Speak to your insurance broker, agent, or the company for clarification if needed. Purchase a life insurance today. It is very likely insurance firms may begin amending their policies and premium to factor in the world-wide impact of covid19 on their mortality assumptions, capital, company operations and investments. Purchasing one today will secure financial protection for you and your dependents at a lower price in case prices are reviewed. Purchase/Renew your Health Insurance. Health insurance cannot be overlooked in these uncertain times. One may choose the basic National

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health Insurance, or opt for a private health insurance or be part of a firm’s staff health insurance package. Ensure all dependents including yourself are adequately covered on at least a basic health insurance scheme. It will go a long way to save one some money from simple to more sophisticated health emergencies. Keep your Pension Plan Active. During uncertain times, we are more prone to forget about the future and think of “surviving now”. Individuals or firms may discontinue pension payments for both mandatory and optional tiers. This may not be the best financial decision both regulatory wise and in the long term. One may go through the turbulent covid19 pandemic and its adverse effects, but one cannot ultimately escape death or the appointed time to retire from work. Protect your assets with Insurance. Losing more money by replacing or repairing damage or loss of property in these financially unstable times is not the best idea. Get as much insurance as you can afford to cover such possible losses especially in the next one year or two when financial recovery is expected to take place.

Samuel Kofi Ohene is a professional risk analyst with specialties focused on actuarial and statistical techniques in financial and operational risk management. For comments, contact him via email, sohene15@ gmail.com

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MONDAY JUNE 1, 2020 THEBUSINESS24ONLINE.NET