Business24 Newspaper (May 15-2020) by Business24 Online

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FRIDAY MAY 15, 2020

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MPC to fire next shots at coronavirus crisis Delayed petroleum pact negotiations concerning—civil society groups MORE ON PAGE 3

Dr. Ernest Addison Governor of the Bank ofGhana BY NII ANNERQUAYE ABBEY

The Monetary Policy Committee (MPC) of the Bank of Ghana (BoG) is today expected to announce its next monetary and financial policy actions to combat the economic fallout of the novel coronavirus, having put the devastating impact of the virus under the microscope for the past two months. The second MPC meeting since the virus was discovered in Ghana is expected to follow up on a raft of policy directives engineered in March to provide ammunition to the banking sector to deal with the economic impact of the virus. The highlight of the committee’s meeting in March saw a 150-basis-point reduction in the monetary policy rate to 14.5 percent, with banks impressed upon to further slash lending rates to ease credit. Even before the full effect of the policy rate cut and the allied policy directives announced

on March 18 is felt, the committee will have to contend with a sudden jump in the inflation rate to a two-year high of 10.6 percent, which is beyond the BoG’s medium-term target of 8 plus or minus 2 percent. According to the Ghana Statistical Service, the April inflation rate was largely driven by the effects of a lockdown in Accra and Kumasi, which had led to massive panic buying as households attempted to stock up on food and other necessities required to get through the period of restrictions on movement. The agency explained that the upward movement was caused by a sharp increase in food inflation, which stood at 14.4 percent compared to the average of 8.8 percent recorded over the past eight months. While Courage Martey, an economist with investment banking firm Databank, contends MORE ON PAGE 2

Gov’t to pay more for water subsidy → Consumption rises after subsidy → Total monthly billings expected to hit GH¢140m

Balogun Olalekan assumes office as MD/CEO of UBA Ghana MORE ON PAGE 3 ECONOMIC INDICATORS

Toyota Ghana assists two institutions in COVID-19 fight

*EXCHANGE RATE (INT. RATE)

USD$1 =GH¢5.6896*

EXCHANGE RATE (BANK RATE)

USD$1 =GH¢5900.*

*POLICY RATE

15.12%

OVERALL FISCAL DEFICIT

6.6 % OF GDP

PROJECTED GDP GROWTH RATE PRIMARY BALANCE.

MORE ON PAGE 11

14.5%*

GHANA REFERENCE RATE

1.5% -1.1% OF GDP

AVERAGE PETROL & DIESEL PRICE:

GHc 5.13*

INTERNATIONAL MARKET BRENT CRUDE $/BARREL

29.15

NATURAL GAS $/MILLION BTUS

1.90

GOLD $/TROY OUNCE

1,717.86

CORN $/BUSHEL

329.50

COCOA $/METRIC TON

1,381

COFFEE $/POUND:

+5.70 ($108.30)

COPPER USD/T OZ.

220.15

SILVER $/TROY OUNCE:

16.39

NEWS/EDITORIAL

FRIDAY MAY 15, 2020

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EDITORIAL

Wash your hands 2

Cover your cough 3

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)

Let’s use water wisely Reports that government’s allocation of GH¢200m to pay the water bills of households for April-June is likely to be inadequate, should move us to use water wisely. The Ghana Water Company (GWCL) has served notice that increased consumption means an estimated GHC 420million bill awaits government. Absorbing the water bills of Ghana’s 30m population for three months (April-June) represents a heavy responsibility the government has taken

on in order to cushion the economic impact of the coronavirus pandemic, with an initial GH₵200m allocated for the expenditure. GWCL’s total billings for all customers average GH₵95m per month, but given the rise in water consumption as a result of the pandemic and the subsidy itself, the cost is likely to be more during the subsidy period, sources at GWCL revealed. The projected increase is based on the fact that people are using more water for cleaning to limit the spread of COVID-19 and also because consumption is free for this period.

Moreover, GWCL has procured about 700 water tanks and engaged the services of tankers to supply water to communities. Compensation for such vendors is currently being discussed, which would contribute to the cost of the subsidy. The President, Nana AkufoAddo, in his fifth address to the nation on April 5 since the coronavirus outbreak, announced that the public would enjoy free water supply from the GWCL for the months of April, May and June as part of interventions to help stop the spread of the coronavirus disease and alleviate its economic

impact. GWCL has an estimated 550,654 customers in urban areas. This number represents 77 percent coverage of urban Ghana. The company on average produces 192m gallons of water per day, which is 57m less than the daily demand of 249m gallons. This paper believes that it should be our collective responsibility to use water and electricity wisely as in the end, our taxes, not the personal funds of managers of the economy, is what will be ultimately used in settling the huge utility bill.

MPC to fire next shots at coronavirus crisis (…CONTINUED FROM COVER ) that the sudden hike in the inflation rate could be one-off and does not necessarily reflect underlying pressures, he maintains that the BoG would be cautious going forward. “The latest inflation rate effectively closes the window for a further rate cut,” he told the Business24 in an interview. In his view, the Bank of Ghana will be keen to assess the impact of measures announced to improve liquidity rather than seek to inject further liquidity into the system. Exchange rate deterioration The local currency enjoyed an impressive run against all major trading partner currencies in the period before the COVID-19 pandemic broke out in Ghana. The cedi’s notable performance against the dollar was a 3.7 percent year-to-date appreciation as at March 12, when the first two cases of the coronavirus were reported here. Since that period, the cedi has plunged by more than 5.5 percent against the greenback, bringing the year-to-date, May 13, performance to about 1.4 percent depreciation. While the deterioration over the last two months has been sudden, the Bank of Ghana will be minded about the fact that the cedi had a worse run in the same period last year, when it depreciated by 5 percent. Nevertheless, the policy rate action to be announced today is expected to prevent a further run on the local currency, as foreign investors in local bonds over the

period have shown the proclivity of moving their funds to safer markets. It is expected that with Ghana’s net foreign reserves – which stood at US$6.85 billion as at February 2020 – not seeing much inflows due to shortfalls in export revenues because of COVID-19, the central bank will be careful not to ruffle the feathers of foreign investors. Although the government has benefitted from balance of payments support of about US$1.5 billion from the IMF and World Bank to battle the effects of the pandemic, the extent of the impact has pushed authorities to be cautious. As Mr. Martey sums it, “I don’t think that there is reason to cut the policy rate. At best it should be maintained.” MPC’s initial coronavirus response The central bank, in wanting banks to lend more to critical sectors such as pharmaceuticals and manufacturing,

lowered the primary reserve requirement (PRR) to 8 percent from 10 percent. Also, to enable banks provide the needed financial support to other sectors of the economy, it freed up liquidity by reducing the Capital Adequacy Ratio to 11.5 percent. Banks were also given permission to make some allowance for businesses that may default on their loan repayments as a result of COVID-19. The central bank in its effort to promote digital payments directed mobile money companies to abolish charges on transactions of up to GH¢100 (minus cash-outs). Also, the know-your-customer requirement to open a mobile money account was relaxed to allow customers use the registration details of their SIM cards to register for mobile money accounts.

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Delayed petroleum pact negotiations concerning—civil society groups BY BENSON AFFUL

Three civil society groups in the natural resource sector have advised government to expedite negotiations of petroleum agreements with successful bidders selected in July 2019 during Ghana’s first competitive oil licensing round. The groups, which comprise Natural Resource Governance Institute (NRGI), Ghana Oil and Gas for Inclusive Growth (GOGIG), and Civil Society Bid and Licensing Round Monitoring Group, said the delay in the process portends corruption risks which could negatively impact future investor interest. “Although the selection process met the timelines set by the Ministry of Energy, the actual negotiations of petroleum agreements are yet to be concluded five months after the deadline,” the groups said in a monitoring report put together on the licensing round. Bid and licensing rounds are now

a global norm for resource-rich countries in selecting investors for upstream petroleum activities. Ghana’s first oil bid and licensing round was launched in October 2018, and winners were announced in July 2019. The country introduced competitive bidding after a decade of operating on a first-come-firstserve (direct negotiation) system of awarding oil and gas exploration and production rights. Six blocks were made available for the licensing round; three blocks to be awarded through an open and competitive bidding process, two through direct negotiations, and one to be solely operated by Ghana National Petroleum Corporation (GNPC), the national oil company. Only two blocks were awarded at the end of the process. Eni, the Italian multinational, and Vitol, the Dutch firm, secured one block, and a second block was assigned to First Exploration and Petroleum

Development Company Limited, a Nigerian firm, and its local partner, Elandel Energy Ghana Limited. The process was conducted in accordance with applicable laws and international standard practices, the civil society groups said. This provides opportunities for sustained investor confidence in future licensing rounds, they added. They also identified certain challenges in the process, including the fact that out of 60 applications received from 16 companies, only three companies progressed to submit bids after prequalification. This reflected issues with the quality of data and fiscal terms, which are very crucial in sustaining investor interest beyond the initial expression of interest. According to group, while the licensing process was ongoing (competitive tendering and direct negotiation), the Ministry of Energy opened an escape window for companies to negotiate outside

the licensing round process. This had the eﬀect of undermining the competitiveness of the process, they said. Ms. Nafi Chinery, West Africa Regional Manager at NRGI, said competitive bidding is expected to generate optimal returns for Ghana as it is likely to provide avenues for highly competent and qualified companies to bid, and therefore achieve relatively higher market values for all stakeholders, and crucially for Ghana. Unlike direct negotiation, she said an open competitive bidding process is subject to public monitoring and oversight, and potentially reduces rent-seeking practices that usually characterise the open-door approach to contracting. Competitive bidding reduces information irregularity among companies and provides citizens comprehensive information for oversight and monitoring purposes, she added.

Gov’t to pay more for water subsidy BY EUGENE DAVIS Government’s allocation of GH¢200m to pay the water bills of households for April-June is likely to be inadequate, since the cost of the subsidy, according to sources at the Ghana Water Company (GWCL), is expected to hit GH¢420m due to increased water consumption. Absorbing the water bills of Ghana’s 30m population for three months (April-June) represents a heavy responsibility the government has taken on in order to cushion the economic impact of the coronavirus pandemic, with an initial GH¢200m allocated for the expenditure. GWCL’s total billings for all customers average GH¢95m per month, but given the rise in water consumption as a result of the pandemic and the subsidy itself, the cost is likely to be more during the subsidy period, sources at GWCL revealed. The projected increase is based on the fact that people are using more water for cleaning to limit the spread of COVID-19 and also because consumption is free for this period. Moreover, GWCL has procured about 700 water tanks and engaged the services of tankers

to supply water to communities. Compensation for such vendors is currently being discussed, which would contribute to the cost of the subsidy. The President, Nana Akufo-Addo, in his fifth address to the nation

on April 5 since the coronavirus outbreak, announced that the public would enjoy free water supply from the GWCL for the months of April, May and June as part of interventions to help stop the spread of the coronavirus disease and alleviate its

economic impact. As part of precautionary measures to stop the spread, health experts have advised the washing of hands with clean water under running water for at least 20 seconds. This requires access to uninterrupted water supply, partly motivating the government’s intervention. GWCL has an estimated 550,654 customers in urban areas. This number represents 77 percent coverage of urban Ghana. The company on average produces 192m gallons of water per day, which is 57m less than the daily demand of 249m gallons. Selling water is illegal In the wake of the subsidy, the company has cautioned vendors, including landlords and landladies, to desist from selling water to consumers and also urged opinion leaders and assemblymen to help with the education to prevent vendors from engaging in what the company describes as an “illegal” venture. As at December last year, government’s indebtedness to GWCL stood at GH¢137m, reflecting mainly debts of Ministries, Departments and Agencies (MDAs).

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Balogun Olalekan assumes office as MD/CEO of UBA Ghana The Board of Directors of United Bank for Africa (Ghana) Limited (UBA Ghana) has announced the appointment of Mr. Olalekan Balogun as the new Managing Director/Chief Executive Officer of the Bank effective May 8, 2020. Mr. Olalekan replaces, Mr. Isong Udom, who has been the Managing Director / Chief Executive Officer of the Bank since March 2018 and now re-assigned to UBA Plc, Nigeria. Prior to his appointment, Mr. Balogun was the Managing Director / Chief Executive Officer of UBA in Liberia, where he led a major transformation and grew the Bank to become dominant player in that country. He has over twenty-Five years banking experience, having joined United Bank for Africa Plc. as a fresh graduate in June 1994, and has led and managed various departments and operations of the Bank. A statement issued by the bank in Accra said, as a Board, “we are delighted to have someone of Olalekans caliber and experience to continue the bank’s growth strategy.” It said at this critical moment in the financial services industry,

“we believe that his experience will greatly help in the successful implementation of our strategy.” It added that Olalekan’s experience from other jurisdictions would be useful in improving what we are already doing in Ghana, making us a major force in the industry. Mr. Olalekan, affectionately known as Lekan, has acquired wealth of experience ranging over twenty years in banking. He joined United Bank for Africa Plc. in June 1994 as an Operation Staff and moved to marketing a year later. He quickly rose through the ranks to becoming a relationship manager in charge of commercial banking. As a result of his excellent performance, he rose rapidly to the level of Manager in six years. In August 2000, Lekan resigned to join New Nigerian Bank Plc (NNB) as one of the turnaround staff to reposition the Bank that has been under the Central Bank of Nigeria holding action for 10 years. In NNB, he worked in several key roles as business manager and head, structured business group. After the Bank Consolidation

exercise in 2005, NNB merged to be part of Unity Bank, which comprised of nine banks and as expected, there was staff right sizing to reduce the staff strength to an optimum number. The statement said skill, competencies and experience were critical attributes in the selection process of staff to be retained in the newly formed bank. Mr. Olalekan was not only selected among the lots but was appointment as Regional Manager, Commercial Banking in charge of five States

out of the thirty-six (36) States in Nigeria. It said, after seven years, he rejoined UBA Plc. in 2007, where he was made the Business Manager, Industrial Avenue, Ilupeju, Acting Regional Director Festac Region, Regional Bank Head, Yaba. He excelled in all the roles and was appointed as the strategic business group head in 2014 to manage a larger portfolio covering 28 business offices in Lagos.

Substantial investment needed to avert mental health crisis The COVID-19 pandemic is highlighting the need to urgently increase investment in services for mental health or risk a massive increase in mental health conditions in the coming months. “The impact of the pandemic on people’s mental health is already extremely concerning,” Dr. Tedros Adhanom Ghebreyesus, DirectorGeneral of the World Health Organization has said. According to a policy brief on COVID-19 and mental health issued by the United Nations, “Social isolation, fear of contagion, and loss of family members is compounded by the distress caused by loss of income and often employment.” Reports already indicate an increase in symptoms of depression and anxiety in a number of countries. A study in Ethiopia, in April 2020, reported a 3-fold increase in the prevalence of symptoms of depression compared to estimates from Ethiopia before the epidemic. The report indicates that specific population groups are at particular risk of COVID-related psychological distress. Frontline health-care workers, faced with heavy workloads, lifeor-death decisions, and risk of

infection, are particularly affected. During the pandemic, in China, health-care workers have reported high rates of depression- 50 per cent, anxiety-45 per cent, and insomnia-34 per cent and in Canada, 47 percent of health-care workers have reported a need for psychological support. The report said children and adolescents are also at risk. Parents in Italy and Spain have reported that their children have had difficulties concentrating, as well as irritability, restlessness and nervousness. “Stay-at-home measures have come with a heightened risk of children witnessing or suffering violence and abuse. Children with disabilities, children in crowded settings and those who live and work on the streets are particularly vulnerable,” it added. Other groups that are at particular risk are women, particularly those, who are juggling home-schooling, working from home and household tasks, older persons and people with pre-existing mental health conditions. A study carried out with young people with a history of mental health needs living in the UK reports that 32 per cent of them agreed that the pandemic had made their

mental health much worse. An increase in alcohol consumption is another area of concern for mental health experts. Statistics from Canada report that 20 per cent of 15-49 year-olds have increased their alcohol consumption during the pandemic. The increase in people in need of mental health or psychosocial support has been compounded by the interruption to physical and mental health services in many countries. In addition to the conversion of mental health facilities into care facilities for people with COVID-19, care systems have been affected by mental health staff being infected with the virus and the closing of face-to-face services. Community services, such as self-help groups for alcohol and drug dependence, have, in many countries, been unable to meet for several months. The Director-General said “It is now crystal clear that mental health needs must be treated as a core element of our response to and recovery from the COVID-19 pandemic.” He said “This is a collective responsibility of governments and civil society, with the support of

the whole United Nations System. A failure to take people’s emotional well-being seriously will lead to long-term social and economic costs to society.” In concrete terms, it is critical that people living with mental health conditions have continued access to treatment. Changes in approaches to provision of mental health care and psychosocial support are showing signs of success in some countries. Dr. Dévora Kestel, Director of the Department of Mental Health and Substance Use at WHO said the scaling-up and reorganization of mental health services that is now needed on a global scale is an opportunity to build a mental health system that is fit for the future. “This means developing and funding national plans that shift care away from institutions to community services, ensuring coverage for mental health conditions in health insurance packages and building the human resource capacity to deliver quality mental health and social care in the community,” Dr. Kestel

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F E AT U R E

Emerging economies need new finance, not moratoriums BY MAURICIO CÁRDENAS

Many are calling for a temporary moratorium on all debt repayments by developing and emerging economies, in order to prevent the COVID-19 pandemic from triggering a tsunami of sovereign defaults. Rather than waiting passively until debtors stop meeting their obligations, the argument goes, creditors would be better off agreeing now to suspend repayments for a while. But although a comprehensive debt-repayment freeze could help many low-income countries that lack a better option, it could be counterproductive for emerging economies that currently retain access to financial markets. What these countries need now are more capital inflows, not restrictions on outflows. Payment suspensions pose two problems. First, emerging economies need new net financing – in other words, more resources than would be made available by freezing their debt-service obligations. Second, countries that participate in a repayment standstill will face legal action by some bondholders, compromising their future access to capital markets. A debt standstill would be particularly problematic for countries with significant foreign investment in their local-currency capital markets. A stampede for the exits by foreign investors would put even more pressure on emergingmarket currencies, thus driving up inflation and limiting the liquidity available to mitigate COVID-19’s economic consequences. Imposing capital controls to prevent financial outflows is equally ill-advised: capital would leave anyway and wreak havoc on its way out. While a debt moratorium would do emerging markets more harm than good, it would be unrealistic to expect private capital to provide the financing that these countries now require. True, several emerging economies tapped sovereign-bond markets on reasonable terms in April: Mexico placed $6 billion of debt, Israel issued $5 billion, Indonesia raised $4.3 billion, Peru $3 billion, and Paraguay $1 billion, while Panama and Guatemala raised smaller amounts (in addition, Qatar, the United Arab Emirates, and Saudi Arabia issued debt totaling $24 billion). But these sums are small, relative to emerging economies’ need for an estimated $2.5 trillion in financing this and next year. Moreover, there is no guarantee that future bond issues will be successful. Emerging economies are unlikely to experience a V-shaped recovery, which will worsen their

credit profiles. Recovery will take time, and – like the virus – will come in waves, generating even greater uncertainty. And as global economic numbers disappoint, investors will increasingly lean toward safer assets and reduce their exposure to emerging economies. If neither a temporary moratorium nor reliance on private capital seems advisable, what is to be done? The business-as-usual response would be for emerging economies to seek additional support from the International Monetary Fund and the multilateral (and regional) development banks (MDBs). But these institutions are unable to provide the needed resources. The IMF has at most $1 trillion of firepower, while the MDBs can provide only a few hundred billion dollars more – reflecting these institutions’ inadequate capital and fear of losing their AAA credit ratings. And replenishing their capital will take years, owing to a number of hurdles – including in the US Congress – while funds are needed now. The solution lies with the central banks that issue reserve currencies and which therefore should be genuinely concerned about the health of the global economy. In coordination with the IMF and the MDBs, they should establish a special-purpose vehicle (SPV) that would act as a bridge between the vast amount of currently available global liquidity and emerging economies’ growing financing needs. Specifically, the SPV would issue

bonds, which leading central banks would purchase under their own quantitative-easing (QE) programs, and then lend the proceeds to emerging economies. With some credit enhancements, these loans could be securitized and traded like other financial assets. The SPV would need some equity in order to attain the minimum credit rating required by the central banks that would buy its bonds: MDBs, as well as national governments, could provide it. The MDBs would manage the structuring, oversight, and servicing of the new loans, which could be syndicated between the SPV and the MDBs. But the SPV’s portion of the loans would of course not be booked on the MDBs’ balance sheets, and therefore would not affect their credit ratings. And the SPV loans should be used only to address the COVID-19 emergency (including the recovery). The central banks that fund the mechanism would decide which countries could access it. For example, the US Federal Reserve would probably be unwilling to provide liquidity to an SPV benefiting a country whose main creditors are Chinese. For that to happen, China would need to fund the scheme as well. Furthermore, the SPV could serve as a risk-mitigation device to bring more private capital into emerging economies. For example, it could provide equity guarantees for foreign direct investment in publicprivate partnerships during the post-pandemic recovery phase.

Finally, MDBs should use their own balance sheets more effectively to support the economic recovery. There is much that they can and should do – starting with improving their access to alternative sources of liquidity in order to increase their leverage. The proposed SPV could provide a liquidity backstop that MDBs currently lack. In fact, the G20 Eminent Persons Group recommended precisely this in a 2018 report, estimating that such a facility would enable the World Bank to expand its lending by at least 10%, and the regional MDBs by significantly more. Rather than creating a new international financial architecture in these extraordinary times, policymakers should focus on adjusting the existing system. And establishing an SPV will be simpler and faster than alternative options requiring legislative action. Of course, an additional global lending mechanism would not solve all the problems that emerging economies face today. But it would provide them with some fresh tools. To set it up will require decisiveness and international coordination – the same principles that will help us to defeat the virus itself.

Mauricio Cárdenas, a former Minister of Finance of Colombia, is a Distinguished Fellow at Columbia University’s Center on Global Energy Policy. Copyright: Project Syndicate, 2020. www.project-syndicate. org

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GARDJA engages editors to boost reportage on cashew sector BY REUBEN QUAINOO The Ghana Agriculture and Rural Development Journalists Association (GARDJA) has held an editors’ forum in Accra to encourage increased media focus on the cashew sector. The forum was part of a cashew visibility project by GARDJA which seeks to build knowledge of media persons on cashew sector and expose them to newsworthy issues in the sector. Deputy General Secretary of GARDJA, Joseph Opoku Gakpo, remarked that “the initiative also seeks to expose media persons to practical issues militating against development of cashew sector and draw their attention to recent policy developments in cashew sector”. “The project seeks to put cashew industry players like farmers directly in touch with media practitioners, and publicise cashew sector issues to members of public,” Mr. Gakpo said in a presentation to the editors. Ten (10) editors and subeditors

drawn from various media houses in Accra participated. Despite being a major contributor to Ghana’s economy with more than 125,000 farmers growing the crop, the sector is facing varied challenges including low local processing and declining farmer price. But unlike cocoa, very little conversations are happening around the cashew crop. The Deputy General Secretary of GARDJA explained that the GARDJA cashew visibility initiative will work to ensure the Ghanaian public has access to more and better investigative reports on cashew sector sustainability issues on radio, online, newspaper and TV. It will ensure the voice of cashew farmers and processors will be heard on the challenges facing the industry. “Through the initiative media houses will contribute to informed public debate on cashew industry and journalists will be able to hold government accountable for their actions and words on the cashew industry,” he added. President of the Ghana Journalists

The forum proffered practical solutions to boost advocacy and awareness about the potential of the cashew business to the economy

Association Dr. Affail Money told the gathering the GJA was proud of the initiative being rolled out by GARDJA, describing it as a laudable one. General Secretary of the Cashew Farmers Association of Ghana Clement Anane who was present at the forum said cashew farmers are facing various challenges including pest attacks on their farms. He called for more support from the media to deal with these difficulties. President of Cashew Processors Ghana, Ed-Malvin Nii Ayibonte

Smith, said cashew processors are also facing a lot of challenges including inadequate financing and high operational cost. He also called for the support of the media to deal with these challenges. President of GARDJA Richmond Frimpong assured more initiatives including field trips, workshops, and bursary support for journalists will be rolled out soon to encourage increased media attention on the cashew sector.

COVID-19: Sahara Group highlights critical role of intra-Africa-led interventions Intra-Africa-led collaboration and interventions by the private sector can help the continent bolster ongoing efforts geared towards containing the spread of COVID-19 as well as promote sustainable development across the continent, Temitope Shonubi, Executive Director, Sahara Group has said. Speaking while taking journalists on a tour of the completed over 300-bed COVID-19 Isolation and Treatment Centre in Abuja, Shonubi said leading African businesses can leverage their membership of trade associations, the Private Sector Advisory Group platform of the United Nations and the African Influencers for Development (AI4Dev) platform of the United Nations Development Programme (UNDP) to drive a more cohesive and effective response to the COVID-19 pandemic in Africa. “Sahara Group, through our operations across Africa, has consistently demonstrated its support for intra-Africa led approach to promoting economic prosperity and sustainable development on the continent. Sahara Foundation, our corporate citizenship vehicle conceptualized the Abuja Isolation Centre project, partnered with the This Day media group and worked with other partners to deliver a world-class facility that will help save lives. Sahara is also supporting COVID-19 interventions across Africa and

is exploring areas of further collaboration with other partners for the benefit of over 1.3 billion people that call Africa home,” he said. Shonubi said Sahara Foundation’s concept for the project was driven by the desire to make a difference in how nations respond to the pandemic in terms of physical, mental, and socio-economic wellbeing of all Africans. “In addition to playing a major role in delivering the centre, Sahara and its entities have been involved in providing personal protective equipment and relief materials to help medical personnel and the vulnerable cope with the impact of the pandemic. We believe the ‘Africa for Africa’ message is one that can bring hope and succour to Africa at this time.” According to Shonubi, who is also a member of UNDP Africa’s AI4Dev initiative, Sahara Group is also providing dry and cooked food to over one million beneficiaries, face masks, hand sanitizers and relief materials to communities where its power affiliates (Ikeja Electric, Egbin Power and First Independent Power Limited), upstream and other Sahara affiliates operate across Africa. In Zambia, Asharami Energy Limited Company donated tens of thousands of hand-made fabrics/ Chitenge masks to shore up access to PPE and slow the spread

COVID-19: Sahara Group highlights critical role of intra-Africa-led interventions

of the virus. The company also publishes materials in English, Bemba, and Nyanja to facilitate the dissemination of information about the pandemic. In Kenya, Asharami Synergy Limited donated thousands of 5 litre jerrycans of hand sanitizers, whilst oxygen has been donated to hospitals in Ghana as well as Cote d’Ivoire to boost life support operations. Sahara’s Downstream entity, Asharami Synergy, working in collaboration with other members of the Depot and Petroleum Marketers Association of Nigeria (DAPMAN), is providing support towards the completion and equipping of the Nigerian National Petroleum Corporation in Abuja. Located at the THISDAY Dome in Abuja, the centre was delivered by

a coalition of partners including Sahara Foundation, THISDAY, CCECC, Arise News, The Presidency, Egbin Power, Abuja Electricity Distribution Company, Federal Capital Territory Authority, the Nigeria Centre for Disease Control, the Federal Ministry of Health, the African Finance Corporation, Central Bank of Nigeria through CaCovid. Wood Factory, the Regents school, the three fashion brands of Ebewele Brown, Traffic Clo and Syari Clothiers, Kenol, Mama Cass, 54 Gene and Central Park. The Centre which will be overseen by the FCTA under the supervision of NCDC has a capacity of a minimum of 300 beds with provision for additional 8 Intensive Care Unit beds, ventilators, dialysis machines, protective equipment, and mobile facilities for testing.

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CSDS honours IGP with Lifetime Achievement Award The Center for Strategic and Defence Studies Africa (CSDS Africa) has presented the Inspector General of Police of the Ghana Police Service, Mr. James Oppong-Boanuh, with a Lifetime Achievement Award. Mr. James Oppong-Boanuh, a member of the CSDS Africa International Advisory Board, was awarded for his dedication to the law enforcement profession and his commitment to the betterment of society. Speaking for the think-tank, both Ambassador Brandful and Dr Angela Lamptey, leader of delegation and Acting Executive Director of CSDS Africa praised Mr. Oppong-Boanuh’s handling of the coronavirus pandemic from a security standpoint. Police enforcement of social distancing and face masks protocols were particularly eulogised by Ambassador Brandful. Present at the ceremony were: Mr. James Oppong-Boanuh (Inspector General of Police, Ghana Police Service), Amb. Dr. William Brandful (Member, Governing Board, CSDS Africa), Dr. Angela Lamptey (Ag. Executive Director, CSDS Africa),

Nicole-Marie Poku, Esq (Director Legal and Corporate Affairs, CSDS Africa), and COP/Mr. Nathan Kofi Boakye (Director-General, Research and Planning, Ghana Police Service). Also present were Osei Bonsu Dickson, Esq (Chief Legal Advisor and SGI Coordinator National Security Council Secretariat), ACP/ Mr. Owusu Ansah (Chief Staff Officer Ghana Police Service), Mr. Emmanuel Kelvin Gaisie (Programs Coordinator, CSDS Africa (Events)) and Mr. Edem Kojo Spio (Programs Coordinator, CSDS Africa (Policy)) Lawyer Dickson Osei Bonsu, lauded the Ghana Police Service for their performance throughout the lockdown and urged that while protecting its own personnel, the Service should consider in the postlockdown period, He encouraged the adoption of the 4E principles of bio-security policing, namely - engage, explain, encourage and enforce. “Engage– officers will initially encourage voluntary compliance; explain– officers will stress the risks to public health as well as educate people about the risks and the wider social factors.

Encourage – officers will emphasize the benefits of social distancing, face masking, staying at home and how this saves lives and reduce risk for more vulnerable people in

society; and enforce– where officers will direct individuals or enforce compliance,” he explained.

Toyota Ghana assists two institutions in COVID-19 fight Toyota Ghana Company Limited (TGCL), the sole authorised distributor of Toyota vehicles in Ghana, has supported the fight against COVID-19 by donating a vehicle and PPEs to Noguchi Memorial Institute and Ga East Municipal Hospital respectively. Making the presentation on behalf of TGCL, Mr. Jacob Pimpong, General Manager, National Logistics said: “Since the pandemic broke, we have been monitoring through the media all the efforts various institutions have been putting in and the effect the virus is having on individuals, families, organizations and the nation as whole. In view of this, we saw the need to support Noguchi with this vehicle to enable the staff commute effectively.” He added that, “We know how hard medical staff at Ga East Municipal Hospital are working to help patients recover and felt the need to provide them with these PPEs to protect them” Both institutions were happy to receive the donations and assured the company they will be used for its intended purpose. The 1.8L Corolla is valued at GH¢197,000. PPEs donated includes 2,500 nose masks, 2,500 surgical gloves, 100 disposable gowns, 300 hand sanitizers, 500 liquid soaps, 300 tissue papers, 25 veronica buckets and 100 packs of bottle water.

FRIDAY MAY 15, 2020

MINING

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Golden Star Resources team member remains in isolation Golden Star Resources has stated that one of its team members that tested positive for COVID-19 at its Prestea mine site remains in isolation with mild symptoms. According to a news release from the company, the affected team member was tested and sample processed at a government accredited testing facility in Takoradi . Following an extensive contact tracing exercise, all potentially affected Prestea personnel have followed the government and company protocols, including reporting for screening and testing as required, as well as subsequent isolation. “The safety and wellbeing of our employees and contractors is paramount. We continue to proactively implement COVID-19 prevention and management controls across the business whilst providing available leadership, education and support to our host communities. “To date, we have not witnessed any material impact on production relating to the COVID-19 pandemic. As reported in our Q1 2020 financial results, the supply chains at the Wassa and Prestea mines have not been detrimentally impacted and both operations continue, as does the export and sale of gold ore. Source: GSR

Sierra Leone mining revenue sinks as pandemic hits production and prices Sierra Leone is weathering a dramatic crunch in mining revenue as COVID-19 restrictions hurt companies’ ability to export gold and diamonds and access essential supplies. Revenue from mining dropped from $2.24 million in April 2019 to just $0.33 million in April 2020 - an 85% decline year on year, according to mines ministry figures seen by Reuters. Mining accounts for more than 80% of the West African country’s export revenue, generating the lion’s share of its foreign currency reserves. “This means big trouble for Sierra Leone,” said mining minister Foday Rado Yokie. “We’re praying that things start up again (in) the next few months because this is completely debilitating to our economy.” Gold and diamond exports have ground to a halt since March 21, when Sierra Leone suspended all air traffic in an effort to slow the spread of the coronavirus. Shipments from Chinese-owned Dayu Mining, which operates the country’s largest gold mine, have been on standby for more than three weeks, said Mohammed Daffae, the company’s public relations

manager. Dayu Mining, which usually ships gold by air, initially attempted to export by sea but temporarily misplaced three containers of gold concentrate. It has since suspended production entirely as supply chain disruptions have hindered access to spare parts and other supplies needed for maintenance, rendering much of its digging equipment unusable. “If things continue on like this,

we’re going to have to start making some really difficult decisions,” Daffae said. Frustration is mounting in the community that hosts the mine, he added, with more than 300 local staff furloughed and its community development projects on hold. COVID-19 and a steep decline in diamond prices have caused investors to shy away from projects in Sierra Leone, said Ibrahim Sorie Kamara, co-founder of

Trustco Holdings’ diamond mining subsidiary Meya Mining. Without access to significant in-country capital, he said, the threat to such projects could prove existential. “The worst thing that has happened with COVID-19 is how hard it’s hit the West, which we rely on,” Kamara said. “You have to be able to look inwards for relief when the greater market can’t offer support.”

FRIDAY MAY 15, 2020

AU TO M O B I L E

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Half Sports Car, Half Off-Roader: The era of the SUV Coupe has begun

“Is that the lava orange?” a dude in a T-shirt and cap shouted at me from his Jeep Wrangler idling in a shallow riverbed outside Ojai, Calif. “How do you like it? I’ve got one on order!” The off-roader was eyeing my 2020 Porsche Cayenne Turbo Coupe, a $130,100 crossover with a carbonfiber roof and cartoonishly large wheels. As I drove slowly past him through a washed-out section of road flowing in muddy rapids, he and his rugged buddies whooped their approval. I was surprised, in part because I liked this oddly named franken-car, too. The rig belongs to an increasingly significant sports utility subsegment that’s come to be known collectively as SUV coupes. Porsche Automobil Holding SE offers five variations on its Cayenne Coupe alone. If you’re wondering about the label “coupe” on something like an SUV, it’s not just you. Until recently, the term was reserved for an auto with two doors. But that definition has expanded beyond low-slung sports cars to include zippy four-door sedans and now SUVs, which dominate 70% of total auto sales in the U.S. The emerging type (sometimes called a crossover coupe, sport utility coupe, or sport activity coupe) is built on the chassis of an SUV. It’s got big cabin space, an elevated ride, and ample towing capacity, but it’s topped with the low, sleek roofline of a sports car. You can distinguish

it from a traditional SUV if you look closely: Both the $76,500 2021 Mercedes-AMG GLE 53 Coupe (shown here) and the Porsche I drove this month taper off midway back down their roofline, as if a sculptor had smoothly rounded off all the squared edges. People are dropping leases of “vehicles that are swoopier in design—sedans or coupes they really liked—because they want the utility” of an SUV, says Stephanie Brinley, automotive analyst for research company IHS Markit Ltd. “These SUV coupes address that niche.” Those designing them say the spread of Covid-19 will only further the reach of the style. “Now the most important thing to know is that you and your family are safe, and the safety aspect applies to an SUV coupe. It’s very beefy, it’s strong, you sit up high, it has big wheels and 4x4 capability,” says Gorden Wagener, design chief at Daimler AG, describing Mercedes-Benz’s GLE 53 Coupe. “People will want to feel protected in a visual way,” says Adam Hatton, the creative director of exterior design at Jaguar Land Rover Automotive Plc, who was on a recent conference call speaking about the future of auto design after Covid-19. “My job is to make cars look very solid, planted, and safe. ‘This is my protective shell.’ ” BMW introduced the first iteration of an SUV coupe in 2009 with the X6, a 5,000-pound shorn-off SUV.

Jaguar’s I-Pace and Range Rover’s Evoque followed, as did BMW’s four-door X2—even if they weren’t strictly advertised under that moniker. Mercedes-Benz showed a coupe derivative of its GLE SUV in 2015; the trend had become fully crystallized by March 2019, when Porsche revealed the Cayenne Coupe. (At base, the model starts at $75,300.) Notable failures in the category include the now-discontinued, rather bland Acura ZDX and the tooquirky BMW 3 Series Gran Turismo hatchback, also since deceased. Porsche’s more boxy, rectangular counterparts offer sporty cosmetic options, such as a “lightweight” performance package in the 541-horsepower Cayenne Turbo Coupe that deletes the sunroof and adds a carbon-fiber roof. They can weigh a bit less and be slightly faster than their SUV siblings, but the only substantial engineering change is that the back seats have been lowered to afford more headroom in the streamlined rear cabin. Those coupes based on an existing SUV model, such as the Cayenne and GLE, carry identical engines, brakes, transmissions, and suspension systems. Wagener calls the effect “coupe DNA translated into SUV proportions.” Even if they’re largely defined by styling changes, it’s not just a marketing gimmick. “There’s no trick involved—it’s really about

trying to make people happy,” says IHS Markit’s Brinley. “Right now, if you put a sedan out there, it’s not impossible to sell, but it will be difficult. Automakers are trying to address somebody who wants utility but expects sexier looks.” Indeed, both the Cayenne Coupe and the GLE 53 Coupe offer more than 54 cubic feet of rear storage space, roughly 90% and 80% of that in the Cayenne and GLE SUVs, respectively. During my test drive, I used the Porsche to ford shallow streams and navigate dirt roads near sunny Tejon Pass, 75 miles outside Ojai. Later that week, I used the more luxurious Mercedes on a Home Depot run, filling up the back with palms, pots, and fertilizer destined for a patio deck. SUV coupes allow more space for battery packs and electric motors than do sedans, because they’re larger all around, which is also auspicious for their future popularity. Porsche’s Cayenne Coupe offers hybrid variants, and Jaguar’s I-Pace is all-electric. “The big thing you have to deal with as a designer is the layer of batteries, which you can disguise with a crossover coupe” by putting them under the elevated passengers, Hatton says. More space? Larger wheels? They’re great things, whether you’re off-roading out in the sticks or just want to look good on a trip to Home Depot. (Source: www.bloomberg.com)

FRIDAY MAY 15, 2020

L I F ESTYL E

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The coarse delight of “Bukom Banku Live”

BY GABRIEL MYERS HANSEN

The template for “Bukom Banku Live,” one in a string of newly announced additions to GH One’s programme line up next month, is not in itself new. Over at U TV, Akrobeto (Akwasi Boadi) enjoys incremental traction for something similar, hosting “The Real News,” a weekly satirical newscast whose appeal is driven, not by the Kumawood actor’s comedic gifts, but rather, his never–ending dust-up with English grammar. The hook of Banku’s iteration, as read out in a teaser by the popular boxer-musician, sharp in a cream– coloured coat, an orange tie fastened with a lapel microphone, and a distinctive H–affected accent, is this: “the news has to be understood by all it affects. The news has to go down to the basics, but who brings the news to the people?” It continues: “our communities are often misunderstood, and we also misunderstand what is given to us by the way of [sic] news. So, I , together with GH One TV, our favourite, have decided to bring you

the news from our point of views [sic]…” Subject the articulate, PR– perfumed verbiage to some scrutiny, and a number of things emerge. First, this is a ploy by the station to reclaim its market share after taking an economic hit that has led to the exit of some of their biggest talents. In media, as with many other business endeavours (more so in a time of COVID-19), adaptability and constant reinvention are the keys to maintaining a competitive edge, and overall survival. With “The Real News,” U TV has shown that the sort of comedy that mocks one’s struggle with the English language is a working module capable of summoning audiovisual delight. When it first aired nearly two years ago, it was an instant hit, clips of Akrobeto squinting at a big word, or butchering it altogether in pronunciation constantly fuelling Twitter fun. Today, the programme is one of the channel’s flagship offerings. Additionally, it demonstrates the Bola Ray-led company’s desire to broaden its reach to not-sotraditional territory, particularly from inner cities, or as Banku labels it, “swag areas.” Things are no longer the same, and any company looking

to remain relevant must head to the masses. In that regard, Bukom Banku is a modern TV Messiah. Next, it reveals an interesting feature about what the Ghanaian finds funny. The joke is as valuable as the medium via which it is conveyed. In these parts, limping English is becoming an increasingly popular route. Comedy is a sensitive, sophisticated, and everevolving craft. If you are a Ghanaian practitioner, however, you often don’t need to enhance your storytelling; just ensure a steady deterioration in your use of decent English. Actors Lil Win and “Kejetia versus Makola” star, Lawyer Ntim are other beneficiaries of the “ailing English” method. The success of shows like “The Real News,” “Bukom Banku Live,” and to an extent, Joy FM’s “Weekend City Show,” for which the entry threshold for entertainment value are quite low, are a litmus test; how we can tell if Accra really likes something or not. Beyond their “first comer’s advantage,” U TV have also exposed that news steeped in comedy that chafes against the principles of syntax can compete as effectively as, say, Mexican telenovelas, for copious eyeballs. This is a numbers game, after all.

Of the new range of programmes on GH One, “Bukom Banku Live” sparkles the most. For one thing, it is the most unique in the group; unorthodox in its form. The four other shows, if you’re a regular viewer, are not unfamiliar in their appearance. Banku’s show isn’t. What’s more, its star enjoys crass celebrity. Aside his boxing achievements, a loud mouth and raging persona, together with constant scandal, have contributed greatly to thirty-nine-year-old Banku, who was born Braimah Isaac Kamoko’s clout. Perhaps, but for the overhaul of editorial standards at GH One, opportunities like this were a far cry for persons from backgrounds similar to Bukom Banku’s; with their limited formal education and modest daily ambitions. So, there’s a siver lining there, because it underscores the validity of everyone’s dream. Still, there’s also the tough question about whether viewers have been laughing with Akrobeto or at him. The same must be raised about Bukom Banku. Entertainment is entertainment, but it must not come at the cost of one’s dignity.

FRIDAY MAY 15, 2020

L I F ESTYL E

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Masks, tests and no-contact training: Premier League faces many hurdles Serious difficulties remain before the Premier League can return safely in June, with players worried about the impact Footballers are the ones we rely on to provide that much-needed entertainment, the spontaneity that reruns of Euro 96 and Only Fools and Horses cannot provide. There are, however, numerous hurdles to jump before Premier League teams can even get on to the training ground uniformly and, assuming they do make it back to the hallowed turf, things will get more complicated. Without using public transport the players are due soon to return to work, ready to potentially restart a season three months since the most recent match. The Premier League is aiming to resume in June. The first step to allowing the world to witness England’s top flight again will be physically distanced training where participants need to keep two metres apart. Medics are concerned about the impact Covid-19 could have on the lungs and heart in the long term and the fact that those who contracted the virus may be unable to regain full pulmonary capacity in the immediate aftermath. Players at one European club have complained about being unable to exercise for more than five minutes upon recovery from the virus, leaving many to wonder what effect a return to training will have. “There should be individual risk assessments on everyone,” the Football Association cardiologist Dr Aneil Malhotra says. “People are being paid to push their hearts whether it’s for Scunthorpe United or Manchester United and at the end of the day we have the responsibility as physicians to make sure everyone is safe to return to play. The club doctor should sit down and perform a clinical assessment. If they do report any symptoms then you would go on to perform further tests.” In Turkey, the Besiktas squad were disinfected from head to toe in a Tardis-like machine before being allowed to enter the building, taking temperatures is the new norm, and some teams train in rubber gloves. The Premier League will go one step further and encourage masks. Dressing rooms will be no-go areas, meaning players drive in wearing training kit and wash it at home, a system already operating abroad. A club doctor explained how some individuals will be carefully monitored because of worries they could be overwhelmed by a return to the outside world in a physical environment having lived alone for about two months. Even in these days of zonal marking, staying apart on a pitch while providing effective training will be complex. Coaches will have to be creative to ensure they keep their players interested after

two months of Zoom sessions and personalised exercise programmes. One player told the Guardian that video conference training was “a waste of time”. In Sweden, clubs have been training for a long period, which included a phase of contact-free sessions. The former Bristol City manager Keith Millen, now in charge of the secondtier side Örgryte, had to improvise a new style of activity. “It gets you thinking about what you are going to do training-wise,” he says. “There is a lot of stuff you can do unopposed, especially when it’s like a pre-season, so it’s not a bad thing anyway when you are building a player’s fitness and getting their bodies ready for competitive football. You do a lot of training where you don’t want much contact, so it’s not been too bad. There’s been a lot of mannequin work, getting mannequins out every day as your opposition.” Re-engaging with the sport will be a good start, but any footballer or staff member will be more than happy to explain the difference between being fit and being matchfit. A number of players explained it would take three weeks of normal training to get back to a competitive level and matches would be

required. Without friendlies to build momentum, competitive fixtures are likely to be an inferior product when they start, especially inside an empty stadium. There are also fears that teams will need to prioritise games – and almost ignore others – because it looks like they will come thick and fast, resulting in questions over the much-trumpeted integrity at the heart of the season’s conclusion. All players will be tested for Covid-19 but this is not the perfect solution it is made out to be. Once all the results are returned, those that come back negative will be able to begin full physical contact training. However, almost a third of tests provide false positives, a number of doctors have told the Guardian, which could leave many players in isolation unnecessarily and potentially whole teams in quarantine. One potential plan would be to cut the quarantine time to three days for those who show no symptoms before retesting them. If a player has symptoms he will be obliged to tell his club, having signed a document to say he will abide by the rules, putting the emphasis on self-regulation. Players have expressed concern

that they are putting their families as well as themselves at risk. Eibar’s players released a statement which summed up the feeling of many in the game: “It worries us that by doing what we like most, we could get infected and infect our families and friends, and even contribute to a new wave of the pandemic – with the terrible consequences that would have for the whole population.” It is a reminder among all the fanfare of football potentially coming back that players are only human and some will have relatives on the vulnerable list. All the best practices will be put in place to minimise the risk to players but, as with everything related to coronavirus, the unknowns are where the dangers lie. Before games are scheduled, clubs should have to prove their safety protocols are working. A number of weeks of training without a case of Covid-19 would be evidence of that. The foundations are in place for a return to football but they could be supporting a house of cards. Only time will give us the answer. (Source: www.theguardian.com)

FRIDAY MAY 15, 2020

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Coronavirus may have been with us much earlier than we think BY PROF DOUGLAS BOATENG

Peer-reviewed research publications from among others UCL’s Genetics Institute, are increasingly supporting the hypothesis that SAR-COV-2 (i.e. Coronavirus) may have been with us since the last quarter of 2019. According Professor Francios Balloux, director of the institute, genetic evidence supports suspicions that the virus was most likely infecting people in Europe, the USA and elsewhere weeks or even months before the first official cases were reported in JanuaryFebruary 2020. Dr Yves Cohen, head of resuscitation at the Avicenne and Jean Verdier hospitals has similarly revealed that aman in France was infected with COVID-19 as early as 27 December 2019, nearly a month before authorities there confirmed the first cases. Professor Balloux further opined that at most, 10% of the world’s population (i.e. 790 million people) has been exposed to the virus. As Professor Marc Lipsitch from Harvard University rightly pointed out, the SAR-COV-2 spreads rapidly with “infectants” transmitting it before they even know they are infected. For this reason he projects that between 4070% of the world&#39;s population could become infected. The rapid global spread may have been started by travellers who got infected when they went to China, then travelled back home and/or directly to various destinations in Europe, USA, Africa and the rest of the world. Some of these “globe trotters” included Ghana-based business people C-suite executives, academics, policy makers, students, tourists, politicians, traders, diasporians and so forth. All Ghanaians will recall that during the last quarter of 2019, there was an influx of visitors into the country for the very successful Year of Return project. It is highly possible that this cunning and elusive coronavirus could have made its way into Ghana then, via several asymptomatic carriers. The swift, bold and decisive move by the President and Government to partially lock down the country as well as immediately commence tracing and testing certainly helped Ghana to avert the unfortunate cataclysmic incidents currently unfolding in the USA, Spain, Brazil, Italy and the UK. As at May 14: (1) known infections as a percentage of Ghana’s total population remains below 0.02%. Of these documented infections, five (5) cases or roughly 0,00002%

of the total population were deemed serious or critical cases; (2) the twenty four (24)under thirty COVID-19 unfortunate fatalities as a percentage of the over five thousand (5530) known infections was circa 0.4%. This is well below global and African mortality benchmarks of around 6.7% and 3.46% respectively. These factual data certainly provide further proof that the interventions by Government coupled with citizenry vigilance is working and augurs well for the future. With more testing and tracing, infection cases both locally and globally will definitely show an upward trajectory for the rest of 2020 and possibly beyond. However, there is increasing evidence that getting infected with SAR-COV-2 (i.e. coronavirus) does not necessarily lead to the full-blown COVID-19 disease. Nor is the disease COVID-19 a death sentence. It is for this reason that out of the more than four million infections that have been documented globally, over 350% (i.e. 1.66 million people) have already fully recovered. As of May 14 2020, serious critical cases as a percentage of the recorded global and African infections were approximately 1% and 0.4% respectively and improving. In Ghana the five (5) serious and critical cases as a percentage of locally known infections was roughly 0.1%. Ghanaians must respectfully accept that since the coronavirus

spread supposedly started during the late 4 th quarter of 2019, it is highly possible that there is a relatively high number of asymptomatic carriers already in our society. These nationals have unintentionally infected others. The new asymptomatic “infectants” who do not know that they are carriers also innocently continue to spread the virus. Hence the need for ongoing vigilance by all. Time will be best judge as to whether these earlier carriers have developed innate or adaptive immune responses to the virus. To date around 0.575% of the world’s population have recorded infections. Leading academics and scientists including Dr Fauci of NIAID continue to warn that the true extend of the pandemic is not known due to insufficient testing infrastructure globally. The situation in Ghana is no different. Hence, there is an urgent need to improve public health care supply chains and tracing and testing capabilities in anticipation of an extended show down with this highly contagious, cunning and elusive beast. WHO estimates the reproductive number (R0) for the SAR-COV-2 – which indicates the transmissibility of the virus – to be between 2 and 2.5. Behaviour patterns are inextricably linked to

the R0. If the number is above one (1) the infectivity rate increases exponentially. If below one (1) the virus dwindles as virtually no infections are occurring. Ghana is yet to determine the country-specific R0 for this dreadful virus. However, it is looking increasingly likely that it is currently nowhere near the WHO estimate and most likely currently BELOW 0. For the reproductive number to remain below zero (0) there can be NO relaxation on: (1) onoing tracing, testing, isolation, treatment, continuous tracking and monitoring; and (2) strict adherernace to containment measures such as the wearing of the right face protection masks = (FPM), improved personal hygiene, washing of hands, restrictions on public gatherings, distancing in communal and public areas, in offices, schools and work areas, boarder controls, etc. Finally, our beloved Ghana is part of an interconnected world. The country is increasingly becoming the aero logistics, supply chain hub and gateway into the ECOWAS subregion and has already been drawn into this complex global ‘war’. On May 12 th Dr Ryan of and executive director at WHO recently warned the world that like HIV and AIDS the SAR-COX-2(ie Coronavirus) virus and COVID-19 disease may become part of the global community for a whilelong time. All Ghanaians must therefore prepare their minds for a possible prolonged battle with this lethal micro-organism by individually and collectively continuing to: (1) act as true citizens by adhering to the strict protocols to protect each other as well as (2) help to especially shield the aged and vulnerable in our society from this incredibly dangerous micro-organism. Without a doubt, science and engineering will eventually solve this complex COVID-19 conundrum. However, nobody currently knows how long it will take. As a nation we have done well so far and will emerge stronger to implement our beyond aid agenda. Professor Douglas Boateng is an international chartered director and Africa’s first ever appointed Professor Extraordinaire for Industrialisation and Supply Chain Governance.

Professor Douglas Boateng is an international chartered director and Africa’s first ever appointed Professor Extraordinaire for Industrialisation and Supply Chain Governance. www. panavest.com

FRIDAY MAY 15, 2020

F E AT U R E

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Messages from “fiscal space” BY JAYATI GHOSH Among the many inequalities revealed by the COVID-19 pandemic, one of the most striking is the dramatic divergence in governments’ fiscal responses. Economic activity has collapsed worldwide as a result of lockdown measures to contain the coronavirus. But while some developed countries have been able to deploy fiscal stimulus on an unprecedented scale, most have not. Since March, the US government has announced additional spending amounting to over 14% of GDP. In Japan, the figure is over 21%, compared to nearly 10% in Australia and around 8.4% in Canada. In Europe, lack of agreement on a strong joint stimulus effort has led to more varied responses, from additional spending ranging from 1.4% of GDP in Italy and 1.6% in Spain to 9% in Austria, with Germany and France in the middle, at 4.9% and 5%, respectively. Rigid EU budget rules continue to limit government spending in precisely those countries that need fiscal stimulus the most. Meanwhile, monetary-policy responses have expanded the fiscal capacity available at subnational levels of government in many advanced economies. By cutting interest rates, buying up municipal and provincial bonds, and introducing new lending facilities for specific sectors and enterprises, the US Federal Reserve and other major central banks have used all means at their disposal to keep borrowing costs low, and to maintain public agencies’ liquidity. By contrast, the fiscal response across most developing economies has been underwhelming, but not because the economic conditions facing these governments are any less challenging. If anything, the lockdown measures and disruption of global trade and investment have already inflicted even greater damage on developing and emerging economies than on the rich world. In India, for example, it is estimated that 122 million people lost their jobs just in April. Worse, despite lockdown measures, the number of COVID-19 cases in the country continued to rise rapidly. Declining remittances and sharply falling export and tourism revenues have battered many other developing economies as well, even those with less stringent lockdowns. Yet, despite large-scale job losses and declining household incomes, there has been relatively little fiscal response. While Prime Minister Narendra Modi just announced a package amounting to 10% of GDP, this includes earlier allocations and the expected impact of monetary measures. Additional

public spending will comprise only a miniscule fraction of the total amount. These differences are evident even within the G20. By the end of April, new public spending by the group’s emerging economies averaged around 3% of GDP, compared to 11.6% among the advanced economies. And even within that cohort, there was wide variation, with South Africa increasing spending to 10% of GDP, while India’s new public spending was less than 1%. Not surprisingly, outside of the G20, low-income countries have struggled to marshal even tiny rescue packages, let alone anything sufficient to combat the virus and avert economic collapse. Much of this difference in fiscal responses across countries can be explained by longstanding systemic inequalities in the global economy, in which developing countries must borrow in internationally accepted reserve currencies. As a result, they simply do not have the fiscal freedom enjoyed by countries that issue such currencies. That is why a new issue of the International Monetary Fund’s reserve asset, Special Drawing Rights, has become such an urgent priority. Moreover, many developing economies were already being crushed by a mountain of external debt before the pandemic struck. For example, African countries (as a group) were spending more on debt service than on public health. Though many bondholders and other creditors remain in denial about the need for substantial debt

relief, the imminent implosion of global debt makes this outcome inevitable. After all, the widespread cessation of economic activity means that tax revenues are plummeting just when governments need to increase spending. For developedcountry governments that can borrow directly from the central bank, this isn’t really a problem. But for most developing countries, the calculus is more difficult. Even those without immediate debtrepayment concerns are showing little inclination to raise public spending to anything near the levels needed to prevent a broader economic collapse. The reason is simple: most of these countries fear capital flight. Already, more than $100 billion has poured out of developing countries since the pandemic began. Aside from debt denominated in foreign currencies more than a quarter of developing countries’ localcurrency debt is held by foreigners, and liberalized capital-account rules in many countries have made it easier for domestic residents to shift their funds abroad. All of this leaves developing countries exceedingly vulnerable, so much so that the fear of financial markets acts as a major constraint on even the most obvious and urgently needed policies. In India, for example, a top finance ministry adviser justified the pathetically small size of the government’s stimulus package by raising concerns about the country’s sovereign rating. Never mind that an inadequate response increases

the likelihood of a major economic collapse in which hundreds of millions of Indians will face poverty and hunger. Equally revealing, in South Africa, the deputy finance minister created controversy for making the perfectly reasonable suggestion that the central bank should buy government bonds directly. In this self-imposed climate of neoliberal fear, the very idea of instituting capital controls is dismissed as crazy, on the grounds that it would frighten away foreign investors. Yet the economic fallout from the pandemic has made a substantial increase in public spending essential for most developing economies. Besides, how many foreign investors (other than those interested in snatching up assets on the cheap) will be attracted by economies that have been left completely devastated in the absence of fiscal countermeasures? Well before the pandemic arrived, it was evident that the financialization of the global economy was fueling massive levels of inequality and unnecessary economic volatility. In this unprecedented crisis, the need to rein it in has literally become a matter of life or death.

Jayati Ghosh is Professor of Economics at Jawaharlal Nehru University in New Delhi, Executive Secretary of International Development Economics Associates, and a member of the Independent Commission for the Reform of International Corporate Taxation. Copyright: Project Syndicate, 2020. www. project-syndicate.org

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FRIDAY MAY 15, 2020 THEBUSINESS24ONLINE.NET