Business24 Newspaper 12th April, 2021 by Business24 Online

MONDAY APRIL 12, 2021

BUSINESS24.COM.GH

NO. B24 / 181 | NEWS FOR BUSINESS LEADERS

Fin. Min. outlines strategy to manage domestic debt risk

MONDAY APRIL 12, 2021

Rob Floyd

ACET wants increased private sector role to close infrastructure deficit By Eugene Davis ugendavis@gmail.com

A to

frican countries must look beyond multilateral and development banks meet infrastructure gap, Cont’d on page 3

Virus crisis to leave long-term scars, says UN report By Benson Afful affulbenson@gmail.com Ken Ofori-Atta, Finance Minister

By Joshua Worlasi Amlanu macjosh1922@gmail.com

T by

o address the forex risk associated with domestic bond redemptions offshore investors, the

government plans to undertake bond exchanges and buyback auctions in close coordination with the Bank of Ghana. This, according to the Finance Ministry’s 2021– 2024 Medium-Term Debt

ECONOMIC INDICATORS EXCHANGE RATE (INT. RATE)

POLICY RATE

14.5% 14.77%

OVERALL FISCAL DEFICIT

11.4% OF GDP

AVERAGE PETROL & DIESEL PRICE:

4.2% GHC 5.13

he 2021 World Economic Situation and Prospects (WESP) report has cautioned businesses not to expect in-person interaction to

Cont’d on page 2 INTERNATIONAL MARKET

US$1 = GHC 5.7606

GHANA REFERENCE RATE PROJECTED GDP GROWTH RATE

Management Strategy, will smoothen both the redemption profile and any associated forex risk from the repatriation of offshore flows.

BRENT CRUDE $/BARREL NATURAL GAS $/MILLION BTUS GOLD $/TROY OUNCE

CORN $/BUSHEL

$543.75

COCOA $/METRIC TON

$123.55

COFFEE $/POUND:

Cont’d on page 3

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Editorial / News

MONDAY APRIL 12, 2021

Editorial

Healthy capital market vital

bout two years ago, a number of fund management companies incurred the wrath of their regulator, the Securities and Exchange Commission (SEC). These companies had had a field day largely flouting the rules of the regulator without so much of a penal action. The regulator stepped in at a time that many considered too late given that the number of locked-up funds had simply ballooned as these companies had more time to take more funds. The aftermath of the regulator’s actions has not been easy for investors especially with some still chasing after their locked up funds in some of these collapsed companies. It is refreshing to hear that the regulator is taking steps

to ensure that the factors that led to the mess are properly taken care of. According to the commission, its new guidelines are to strengthen the market, increase product offering and diversity and support future growth. One of the key takeaways for the regulator is the sheer scale of corporate governance weaknesses which it responded to by introducing conduct of business guidelines in which market operators were required to issue annual reports to allow investors to know their standing. There is no denying that these directives, when thoroughly followed, would increase the level of transparency as the Commission found out during investigations that there were

related party transactions that were not done transparently. Also, this paper agrees with the view that the revocation of licenses created space for the regulator to focus on the remaining firms and to allocate resources efficiently in supervising the firms remaining. Regardless, the Commission needs to up its game in order to be able to supervise properly any addition to the market. It will not be right to place a cap on licenses that can be issued due to the weaknesses of the regulator. This paper will thus urge the public to support the Commission’s overarching goal to consolidate the asset management industry and it works to ensure compliance, adequate risk management, and clearly defined board roles.

Fin. Min. outlines strategy to manage domestic debt risk Continued from cover

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The country’s stock of domestic debt stood at GH¢149.83bn (US$26.2 billion) at end-December 2020, representing 39.1 percent of GDP and an increase of 42 percent from the 2019 position. Of this, the share held by offshore investors stood at 18.5 percent, equivalent to GH¢27.69bn. It is important for the government to manage exposure to offshore investors given the risk of sudden exits based on changing local or global economic conditions, as well as the effects on the foreign exchange market of financial repatriations by these investors. The bond exchanges and buyback auctions will ensure that government is able to manage roll-over and refinancing risk by consolidating the large number of outstanding securities into fewer and more liquid lines, the Finance Ministry said. It added that the cost of diminishing this roll-over risk will be the sum of premiums charged by investors to sell back or switch their holdings. “Government will implement a

liability management and debt reprofiling programme, which has so far contributed to improving the debt mix and lowered domestic interest payments, to help manage the risks embedded in the debt portfolio,” the Ministry stated. “The benchmark policy to reopen existing bonds to create large-size benchmarks to increase

market liquidity and facilitate more efficient market making will continue to be implemented,” it added. Since 2013, the government has used the buyback strategy to manage the redemption of its outstanding Eurobonds, enabling it to control roll-over and refinancing risks associated with its sovereign liabilities.

MONDAY APRIL 12, 2021

ACET wants increased private sector role to close infrastructure deficit Continued from cover Rob Floyd, Director and Senior Advisor at the Africa Centre for Economic Transformation (ACET) has suggested. Mr. Floyd was speaking at the completion of Africa’s first ever Artificial Intelligence Challenge that had more than 40 data scientists from 20 countries participating. Speaking to the press in a virtual programme to present the AI Challenge factsheet, Mr. Floyd maintained that they hope to use data obtained from the tools such as artificial intelligence, machine learning to help future decisions on infrastructure. Africa’s annual infrastructure financing gap is estimated at US$64-108bn, according to ACET. According to him, the private sector is going to be more comfortable if they know there is good data behind the decisions they make. Furthermore, Mr. Floyd indicated that Africa’s track record in moving projects to financial close is poor: 80 percent of infrastructure projects fail at

the feasibility and business-plan stage. Nearly 600 million people in sub-Saharan Africa lack access to grid electricity—accounting for over two-thirds of the global population without power. Other project partners include the World Resources Institute, Save the Children, and the United Nations World Food Programme The Challenge used publicly

available data – satellite images, socioeconomic data, climate and topological data, population and demographic data, Google Trends, Google business data, social media data The goal is to model the current situation, past temporal changes in population, infrastructure, etc., and in the next step predict future demands of infrastructure. Between 2013 and 2017, the

average annual funding for infrastructure development in Africa was $77 billion. 42 percent of which was funded by government budgets. As a share of GDP, infrastructure investment in Africa has remained at around 3.5 percent per year since 2000. China spends about 7.7 percent.

Virus crisis to leave long-term scars, says UN report Continued from cover return to normal even if millions are vaccinated against COVID-19, a situation the report said is likely to reduce governments’ revenues. The report, prepared jointly by the United Nations Department of Economic and Social Affairs (UN DESA), United Nations Conference on Trade and Development (UNCTAD) and the five United Nations Regional

Commissions, predicts that remote work will likely become the new norm for many service sector jobs, adding that meetings and conferences may remain largely digital, reducing demand for business travel-related services. “Consumer spending will increasingly move online. Leisure and entertainment will also become increasingly digital, replacing brick-andmortar venues for retail and

entertainment. These shifts will likely reduce local government revenues and adversely impact the delivery of basic services— health, sanitation, education, transportation and public safety— in urban centres worldwide,” the report said. In a post-COVID-19 world, the report predicted that firms and sectors that can quickly adapt digital technologies would likely fare better, while making many existing jobs redundant.

This, it said, will likely widen wage and income inequality both within and across sectors. While there will be increases in marginal productivity in those sectors, average productivity growth in the global economy will likely remain subdued. Lower average productivity growth will translate to lower output growth, it added. The report noted that the current crisis is causing a rise in unemployment, poverty and inequality, which threatens to wipe out the development gains of recent decades. For example, the crisis is severely impacting tourismdependent economies, as tourism accounts on average for more than 25 percent of employment and 15 percent of GDP in these countries. “The effect on unemployment rates, poverty and inequality is clearly visible. Amid restrictions on international travel, potential tourists’ fear of contagion and renewed waves of infection worldwide, the outlook for these economies is bleak,” it warned.

MONDAY APRIL 12, 2021

News

MONDAY APRIL 12, 2021

First National Bank partners real estate developers to address housing deficit

irst National Bank Ghana, the nation’s leading mortgage provider, has signed Memoranda of Understanding (MOUs) with Real Estate Developers to collaborate on the provision of homes to Ghanaians as part of the bank’s ‘Year of Home Ownership’ (YOHO) initiative. Under the ‘YOHO 2021’ initiative the bank is helping as many Ghanaians as possible to make their home ownership dreams a reality within this year. “YOHO 2021 was launched in February 2021 to help Ghanaians both home and abroad to either buy a completed house or build/ complete what they have already started. Through this initiative, many can change their status from being tenants to become homeowners in 2021,” says Kojo Addo-Kufuor, the Executive Head of First National Bank’s Home Loans Business. The benefits of the signed MoU to the buyer include an average

Kojo Addo-Kufuor

discount of 10% on the selling price of property for individuals or groups buying with a mortgage from First National Bank, waiver of the application fees and a promise to provide prompt and

satisfactory response on home loans application, after satisfying all requirements. In an interview after the signing of the MOUs, Kojo Addo-Kufuor indicated: “We are looking at

helping as many Ghanaian with a holistic experience in the home ownership journey. We have enhanced our home loans offering to enable us help many who want to make that move from being a tenant to a homeowner. We have engaged with a lot of developers, who are key stakeholders in the real estate value chain, including SBJ, Saka Homes and Adom City to make the properties affordable to the average Ghanaian.” He added: “At first National Bank, we’re here to help Ghanaians to experience the awesome feeling of having a place you can call your own, and we are here to offer all the help we can so that many more people can get to realise their dream of home ownership.” The developers commended First National Bank for their demonstrated leadership in introducing such a great initiative as YOHO 2021 and pledged their support to the cause.

SEC keen on healthy Capital market, protection of investors’ funds

he Securities and Exchange Commission is taking pragmatic steps to strengthen the capital market and to protect investors’ funds, Deputy Director-General Paul Ababio has said. Speaking during Tesah Capital webinar on the theme: “Investing after the Financial Sector cleanup,” Mr Ababio said key among the measures was the issuance of new guidelines for market operators to take care of potential areas, which could disturb the capital market. “The new guidelines we have issued are to strengthen the market, increase product offering and diversity and support future growth,” he said, adding that the Commission also worked on reviewing and enhancing licensing requirements. Mr Ababio said the Commission learnt from the cleanup that there were corporate governance weaknesses and had, therefore, introduced conduct of business guidelines in which market operators were required to issue annual reports to allow investors to know their standing. All these moves, he said, were to increase the level of transparency as the Commission found out during investigations that there were related party transactions that were not done transparently.

“We also saw a lack of professionalism and some misconducts. This new licensing framework seeks to address that. We are enhancing the training programme we offer to market operators as well as implement a continuous professional development through Ghana investment and security institute.” He said the revocation of licenses created space for the regulator to focus on the remaining firms and to allocate resources efficiently in supervising the firms remaining and fulfill its mandates of investor confidence and protecting the investor. The Commission has also digitised the submission of reports to allow for real timing inspections by the regulator and to address concentration issues. “There is an issue of inadequate disclosure to client who are the asset owners. We have asked that fund managers improve the mandate that they assign with clients and that we also inform the public to ask for statements, get a sense of the condition of your portfolio and to understand the risk in that portfolio. There are different risks given your investment profiles,” he said. Mr Ababio said the Commission’s overarching goal was to consolidate the asset

management industry and to ensure compliance, adequate risk management and clearly defined board roles. Also, to support market development with new products such as intensified long-term saving scheme to create additional pullout for fund managers outside of the pension’s regime. “We are looking at a five-year strategic plan,” he said, adding that capacity development for the market and for the regulator was a top most reality. “We want to have stronger investor confidence in the capital market, we want to have improved diversified investment landscape. We want to have a well informed and educated investing public and a commission that is enhanced with adequate institutional capacity to regulate efficiently and strategically,” he added. Mr Kwame Pianim, emphasised

continuous education for the public, market players and the regulators. He said the oversight role of the regulators was key in ensuring confidence of the investing public in the fund management institutions. “Investments are good and we the public must have a safe and sound mind that these institutions that want us to save are protecting our investments,” he said, adding that people should be encouraged to invest in equities, insurance, and others. Mrs Eugenia Basheer, Managing Director, Tesah Capital, said corporate governance was core to the company’s dealings, successes, and future and that the company was looking towards a partnership to create and build a growing generational wealth. GNA

MONDAY APRIL 12, 2021

Feature

MONDAY APRIL 12, 2021

Why effective leaders should be reflective leaders By Poonam Harry-Nana and Anita Bosch

an reflective learning help you become a better leader? With societies becoming more complex and workplaces more challenging, effective leadership has become an indispensable tool for business success. Today’s business leaders are required to challenge conventional thinking, embrace change and manage diversity, while ensuring that employees at all levels of the organisation are well-equipped – both in skills and attitude – to do the job. Not surprisingly, leadership development programmes at universities and other higher education institutions have become increasingly popular, both at the undergraduate and postgraduate or executive education level. Broadly, leadership development focuses on the ‘self’ in a leadership role and the personal attributes that need to be developed for optimal performance, including selfawareness, self-knowledge and self-regulation. At the core of this process is reflection. Some people are naturally inclined towards reflection; others less so. Yet it is possible, by applying various learning techniques and interventions, to develop or enhance this capability and make it the centrepiece of one’s leadership style. Business schools have a key role to play in developing reflective leaders, who are selfaware, accountable and ethical in their approach to managing resources and planning for the future. Curricula should therefore include reflective learning methodologies and applications. Anecdotal evidence suggests that students who embark on business programmes that include reflective learning opportunities invariably end up feeling more self-aware, self-confident and empowered. Through introspection, so the theory goes, these students probe their inner thoughts, beliefs and personal drivers, and in the process sharpen their worldview and enhance their emotional intelligence. This in turn enables them to better understand and navigate complex situations. Yet relatively little research has been conducted on the teaching or value of reflective learning in higher education business programmes, including its application to leadership development.

This article discusses a study that set out to explore how business school students/graduates in South Africa perceived the value of reflective learning interventions in leadership development programmes. Secondary aims of the study included determining which reflective learning interventions added value and how students/graduates felt they benefited from reflective learning. A literature review provided the theoretical foundation for the study, while primary research (using questionnaires and interviews) provided practical insights into the reflective learning phenomenon within the business school context. The reflective learning continuum Reflective learning is a multifaceted concept which can be defined as ‘intellectual and affective activities that allow an individual to explore their experiences leading to new appreciations, understandings or evaluations’. Yet, to many people, engaging in critical reflection can be quite alien or even troubling if it disrupts their deeply entrenched beliefs about themselves. Moreover, reflective learning is a complex, emotional and intellectually demanding process that requires careful planning, skilful execution and time. Reflective learning has different levels of intensity. Certain authors have made reference to a reflective learning continuum ‒ from habitual action (little or no reflection) to deep learning (intensive reflection). For example, little or no reflection involves minimal thought and engagement. Intensive reflection, on the other hand, involves serious soul-searching about currently held beliefs and perceptions, and even opens the door to the possibility of some of these beliefs and perceptions being altered. In a fast-changing and uncertain business environment, which calls for strong and adaptable

leadership, the ability to engage in deep reflection can make the difference between pedestrian and creative, forward-looking decision-making. How was the study conducted? For the primary research, which constituted a descriptive study, an online questionnaire was used (using a secure online datacollection platform), together with follow-up interviews. Non-probability ‒ specifically, convenience ‒ sampling was used to arrive at the participant group. For the sample, the researchers targeted MBA students/graduates who were busy with or had completed their degree, and had completed a leadership development module within the previous five-year period. A total of 37 people, drawn from four business schools, participated in the study. The questionnaire was initially piloted among a small group of MBA students to test its accuracy and effectiveness. Participants were asked three main questions: whether reflective learning interventions (such as journaling, personal development plans, self-assessment, and peer assessments and feedback) had added value to their leadership development journey; which specific interventions had added the most value; and what level of reflective learning (on the reflective learning continuum) they had experienced. Followup telephonic interviews were conducted with participants to clarify potential anomalies in their answers and also to press them for more details on their reflective learning experiences. The two data collection methods were used for the purpose of triangulation, which added to the rigour of the research process. What did the study find? There was an overwhelming affirmative response to the question relating to whether participants believed that reflective learning interventions

had added value to their leadership development journey. Just over a third of the participants said that the reflective learning experience had been lifechanging and transformative. The top-cited benefit by participants was the development of selfawareness and self-reflective competencies, followed by feelings of validation and contentedness. Other benefits mentioned by participants were a new-found appreciation of their role as leaders, recognition of areas needing improvement or with potential for growth, and the importance of explicit and implicit feedback in developing leadership mastery. As far as specific interventions were concerned, the majority of participants found value in writing their life story/autobiography, with just under half citing self-assessment and/or peer assessment and feedback as being valuable. A smaller proportion saw value in writing a personal journal. All participants reported that they had experienced a deeper level of reflective learning, with just under half having experienced intensive reflection ‒ at the high end of the reflective learning continuum. These individuals were likely to see the world (and themselves) quite differently, after having been immersed in a rigorous process of self-discovery. Interestingly, two of the participants reported that their experience of reflective learning – while providing new insights – had been very challenging for them and had stirred negative emotions. They said that the reflective learning approach did not resonate with their personal learning styles and their natural inclination would be to avoid such an activity. Their reactions might have been the result of a particular type of upbringing or cultural orientation, or a reluctance to delve into their (perhaps painful) past. Key insights on reflective practice While the study had a positive (and in some cases profound) impact on most of the participants, it also provided important insights for higher education institutions, and business schools in particular, that are running leadership development programmes. Those participants in the study who did not have an overwhelmingly positive

CONTINUED ON PAGE 9

MONDAY APRIL 12, 2021

Feature

MONDAY APRIL 12, 2021

Why formalised business networking can provide the best chance of success in an ever-changing world

he way we work has evolved considerably in recent years. Progressive entrepreneurs must adapt rapidly to an ever–changing market place. Market leaders wanting to maintain their position, or elevate their business to the next level, are striving to access upto-date market intelligence and ground- breaking innovations in an aggressive manner. As enterprise and innovation adapts to a changing environment, the nature of business network requirements – and with it, the expertise available to them, and the ground–breaking thinking they can draw on – also changes. But what never changes is the truism that formalized business networking can provide the best strategy for the ambitious entrepreneur to achieve results, drive the best opportunities, and derive high level support from a network of diverse entrepreneurs, experience, and insight. “Entrepreneurship is exciting, but it can also be hugely demanding,” said Mel Fisher, MD, Business for Breakfast. “Connecting with like–minded businesses, and gaining insight about the wider market and how it impacts your business, is critical. “It is extremely important that businesses network, and that when they do so, it is formalized, with set objectives and clear goals for an entrepreneur to receive a greater chance of success through highly focused activity that positively impacts their business time and time again,” she said.

“That comes with consistency and intent.” There are many opportunities to network, and to build trusted group of peers. Often, they bounce ideas off, and pick each other’s brain; these kinds of encounters are invaluable. Taking it to the next step, and formalizing your access to potentially ready–made introductions and high quality referred business through the BforB process, can take business networking engagements to the next level. A one size fits all approach can be detrimental. Business opportunities can sometimes come from the most obscure and unlikely of sources. Business for Breakfast is an environment full of diverse business owners, entrepreneurs and decisionmakers. The process is managed carefully to foster growth, collaboration, and genuine interest for each other to succeed. Implementing collaborative thinking and a ‘wider network’ approach takes time and

dedication. When committing to formal business networking, define your goals: short-term, mid-term, and long-term targets can give you clarity, and a definitive way to measure your success. Communicate your goal to your network; that enables them to help you maximise opportunities to win business. Keeping your eye on that goal, and staying on top of the ever-changing business landscape, can be both exhilarating and rewarding, especially when achieved in a dynamic environment with the network of your choice. A commitment to the process and strategy of your networking group then becomes essential. But worthwhile!

Authored by: BforB Ghana | Networking Clubs Business for Breakfast (BforB) is internationally recognised for creating successful networking meetings, events and training for referral marketing. Our global offices are in Australia, Germany, Czech Republic, Spain, Slovakia, Ghana and headquartered in UK. We create an environment where you can build quality relationships within your group, backed up by an ongoing member support programme. BforB is committed to helping small to medium scale businesses expand. In our professional network, members meet regularly in business networks to develop relationships, support each other and to share and record referral business. We are here to help you get new business from quality business introductions and referrals made through our meetings. Contact us: | info@bforbgh. com | Facebook & LinkedIn: @ bforbghana | www.bforb.co.uk

Why effective leaders should be reflective leaders CONTINUED FROM PAGE 7 reaction to the reflective learning component of their leadership development programme indicated that their experience would have been enhanced if they had had been exposed to more real-life interventions – such as business simulations rather than academic, written or classroombased interventions. While not necessarily being the ‘right’ or ‘better’ way of developing reflective skills, this suggests that different people have different learning styles, with some having a preference for experiential situations that mirror real life. The researchers used the findings from the study to develop a framework that can

be used to enhance the design of reflective learning interventions in leadership development programmes. Incorporating the concept of a reflective learning continuum, the framework recognises the importance of students’ readiness for reflective learning, their learning style preferences and their previous life experiences when designing optimal programmes. Appropriate interventions can then be determined. The framework lends itself to further development and testing, such as identifying the link between prior life experiences and the depth of reflection that people are willing to engage in, which would help to inform an appropriate range of leadership development

interventions. Notwithstanding the need for further research and for tailoring the reflective learning teaching approach for different groups of people, the preliminary results from this study show that if more leadership development programmes in South Africa adopted a systematic reflective learning approach, it would help to infuse the business sector with more high-calibre, astute leaders ‒ which is essential given the challenges that the country is facing. • Find the original article here: Harry-Nana, P. & Bosch, A. (2020). A framework to enhance the design of reflective leadership development learning interventions. South African

Journal of Higher Education, 34(4), 60‒76. https://www.journals.ac.za/ index.php/sajhe/article/view/3536 • Prof Anita Bosch holds the Women at Work Research Chair at USB. Contact us for more information on the programmes offered by the University of Stellenbosch Business School (USB): Dr Marietjie van der Merwe USB Representative marie@globalnatives.com +230 606 2341 / +230 5 701 1362 Click on the link for more details on the programmes: https://www.usb.ac.za/academicprogrammes/

MONDAY APRIL 12, 2021

Energy

MONDAY APRIL 12, 2021

Is Ghana experiencing a new strand of ‘dumsor’?

“A challenge in the power system led to a total system shutdown”. A statement so simple but yet, very uncertain in the lives of the ordinary electricity user in Ghana. The fear of the unknown is what creates the panic. Many will want to know the reality, decide to accept and be prepared in the days ahead. Are we ready to hear the truth? “Dumsor” (off and on) is a local term given to the erratic power outage in Ghana. During this period, darkness is more prevalent than light. Over the past years, Ghana has experienced some level of severe uncertain electricity supply challenges dating as far back as 1984. This has caused the Government to make efforts in solving this problem by first increasing capacity at the generation end of the electricity supply chain. Between 2006 and 2016, when the problem was very intense, total installed capacity was increased from 1,730MW to 3,795MW whiles the peak demand at the time also increased from 1,393MW in 2006 to 2,087MW in 2016 due to the changes in the lifestyle of the citizens, increase in electricity access across the country and expansion of industries and residential facilities. The electricity market is based on supply and demand

(i.e. generation vs. load at peak). Ideally, there should always be excess generation to ensure a zero electricity supply disruption unless there is an unforeseen challenge in the chain. A few of some potential challenges are; • Expansion works • Maintenance works • Equipment failure and • Ultimately lack of cash to service all the above mentioned. As of 1989, electricity access in Ghana was around 15-20% of the entire population. This number has risen to 82.5% in 2016 and may probably be hitting around 85-90% based on assumptions. The rise in electricity accessibility in a nation implies extra-added load is added to the capacity being generated. However, solving the problem should not only be at the generation side of things but also along the remaining sectors of the electricity supply chain (i.e. transmission, distribution and revenue collection). As briefly captured in figure 1. Currently Ghana has an installed capacity of around 5,000MW spread across selected regions in the nation and a peak load of between 2,900MW3,000MW. This implies there is excess capacity in the market close to between 30-40% not in use. Having said this, the problem

may not be at the generation stage of the chain, unless there is some sort of disruption at the generation fueling sources i.e. hydro (fall in water levels at the dams), thermal (disruption in supply of HFO or natural gas to the thermal plants as a result of debt, pipeline maintenance, failure of a critical equipment like a compressor in the supply system). If the problem today is not generation, then what is it? Is there more to what we hear from the Minister? In an interview with TV XYZ on 7th April, 2021, the Host Prince Minkah made a call to the then Power Minister, Hon. Kwabena Donkor (In former President John Dramani Mahama’s administration) and in his statement, he clearly confirmed the problem as of now is not a generation problem because there is adequate generation in the system. However, he further reveled a challenge in the Sankofa field where a compressor failed hence supply of gas to the connected thermal power plants was disrupted. He also hinted on the issue of under investment where Ghana Gas was to expand capacity as far back as 2015 to receive gas from other offshore fields (i.e. Jubilee and TEN Fields) to make up the loss in the gas supply. Unfortunately, in his statement, that has not been done.

So clearly, supply of gas in the situation of the failure in the compressor at the Sankofa field is one factor and the other, being under investment on the side of Ghana Gas to make capacity expansion investments. This should not be a time to play the blame game. The current electricity generation mix, as of 2016 is close to 60% being thermal powered and this is because of the many thermal plants that were brought into the country between 2006 and 2016. A period where desperate measures and decisions were made to solve the generation problem. In energy security, one strategy to use is to diversify your source of fuel used for the power plants like ASKA plant, which uses Heavy Fuel Oil (HFO) and some others like Karpower, TapCo, TiCO, Sonon Asogli, Cen Power that uses more than one fuel source. In the event of temporal gas shortage, we could rely on any of the other power plant be it HFO powered (ASKA Plant) or Light Crude Oil powered (Sonon Asogli). Information gathered again reveled, at the event of the compressor failure at Sankofa Government did not have enough treated light Crude Oil and Heavy Fuel Oil hence they had to make immediate arrangement to secure some.

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MONDAY APRIL 12, 2021

Feature

MONDAY APRIL 12, 2021

Re-engineering the consciousness of the African youth for accelerated development The story of the resilient creative African Kelvin Doe is a 26-year-old Sierra Leonean engineer and inventor. He is known for teaching himself engineering at the age of 13 and building his own radio station in Sierra Leone, where he plays music and broadcasts news as “DJ Focus.” He was one of the finalists in GMin’s Innovate Salone idea competition, in which Doe built a generator from scrap metals. Doe would constantly use discarded pieces of scrap to build transmitters, generators, and batteries, as well. He is the youngest person to participate in the “Visiting Practitioner’s Program” at MIT. His accomplishments were documented by RadicalMedia and presented on their corporate YouTube channel. When the video went viral, the story was picked up by CNN, NBC News, and The Huffington Post. Today, Kelvin Doe is one of the most respected young African inventors. He has had the opportunity of meeting various leaders of the world. He was a TedX speaker and has also spoken to young people in Africa on different platforms. In 2016, Kelvin Doe became an Honorary Board Member of Emergency USA, an organization with a mission to provide free medical and surgical care to the victims of war and poverty. Like Doe, there are several isolated success stories of young Africans demonstrating the historical resilience and creativity of the African. There are records of several Africans excelling in different fields of endeavour across the globe. The perplexing question is: why are these stories of excellence not commonplace among the African youth, indeed among the general population on the continent? Most young people in Africa feel dis-empowered, and generally lack the confidence (and the necessary environments) to express their enormous creative potential. What can we, particularly adults and leaders of today, do to change the narrative and power rapid development of the continent? We suggest here a reengineering of the consciousness of the African youth. Reengineering the consciousness of the African youth, supported by pragmatic pro-youth policies is one sure way to ensure a better future for Africa.

I. Culture and development The problem of Africa’s underdevelopment is largely a mind-set and heart-set matter (consciousness). The solution, therefore, lies, largely, in change in mind-set and heart-set. (Consciousness Re-engineering). Culture is the sum total of the belief, values and practices of a people or a group. It is the way people think, feel and act. Culture however has implications: it can be empowering as it can be crippling. How we think and feel affect the way we behave, thereby generating consequences which we see around us. Vishen Makhiani in The Code of the Extraordinary Mind refers to belief systems and practices as models of reality and systems of living, respectively. According to him, these two must be upgraded constantly to help improve our lives. Their consciousness has to be re-engineered if a different behavioural outcome is to be expected. A people’s culture stems from their collective consciousness, i.e their level of awareness. This awareness stems from the people’s socialization, which consists of the formal and informal, intentional and unintentional ways by which culture is transmitted from generation to generation, particularly through early upbringing methods. In Cultures and Organizations, Geert Hofstede calls the process of socialization, mental programming. Makhiani on the other hand calls it, consciousness engineering. Both argue, in computer language/terms that cultures must be constantly upgraded as they constitute the software of the mind. II. All these are symptoms The often discussed problems of Africa are all symptoms of a faulty consciousness: cronyism,

tribalism, and elite political state capture; mismanagement of national and organizational resources; corruption and pure stealing of national, organizational and individual resources; teeming youth unemployment and frustrations; preference for foreign products and adoption of foreign methods of resolving our problems; poverty, disease and despair; dangerous migration of the youth across the Atlantic Ocean, and so on and so forth are all largely a result of culture, developed over many years, particularly during the past five centuries. The true problem is a people who, bereft of any self-esteem, self-value and self-love, are looking constantly for the solution of their problems from an external source - a superior being, spiritual powers, or whiteman. Not being confident in our own abilities, we are constantly looking for a miracle from somewhere, even though God has endowed us with all we need to develop our continent. III. The root cause - the mind and the heart What are some of the causes of this dis-empowering collective consciousness of the majority of our people? Aspects of our traditional beliefs and practices, historical disruptions such as colonialism and slavery, authoritarian and corrupt postcolonial leadership and the kind of formal educational systems we have adopted over the years have all contributed to the wrong mind-set, wrong world view, and wrong beliefs which have in turn weakened our willpower to make the drastic changes necessary (poor heart-set) to transform our societies. In other words, the root cause of our problems is unhelpful beliefs deeply ingrained in our consciousness (‘backward’

consciousness) or ‘backward’ rules (Brules… courtesy Vishen Makhiani - I can’t use his word for the B here so I use backward). Centuries of colonialism, slavery and authoritarian power have exploited and subjugated the African and systematically inculcated in our consciousness that everything about our humanity and culture is inferior. Post-colonial political and corporate leadership at all levels have continued to perpetuate this Afro-pessimism as our leaders adopted the same subjugation posture of the colonialist. Post-colonial leaders exercised absolute power over the people through the new African elites who had become the new colonizers, continuing the exploitation of our resources for selfish gains and perpetuating social injustice. The post-colonial political system is characterized by the destruction of opponents, military and police brutalities; caning of students and lecturers delighting in the poor performance of students in exams; amassing corporate and national wealth for self, family and friends and syphoning them away in foreign banks, just as the colonialist did. We continue to borrow like there is no tomorrow, only to squander the loans and keep piling up debt for the next generation. One judge in Ghana has described this corrupt political system as ‘create; loot and share’. As the system is rigged against the youth, it has created a dis-empowering impact on their consciousness. They can only play along in the system or run for their dear lives to perceived greener lands. Our youth, all over the continent, do not see any hope. They seem deprived of any confidence not only in their national systems, but in themselves as well. How can we expect a person of no sense of value in their self to feel capable of creating anything of value?

MONDAY APRIL 12, 2021

International

MONDAY APRIL 12, 2021

Inflation a ‘desirable way out’ of crisis

hina’s producer price index rose 4.4% year-on-year in March, the country’s National Bureau of Statistics confirmed this week, sparking fears that central banks may have to revise their loosened fiscal policies. However, writing for the FT on April 8 , Pascal Blanqué chief investment officer at investment firm Amundi said that higher inflation will help to reduce the value of government debt issued in response to the pandemic. He said: “A year ago, central banks and governments were forced to take unprecedented measures in real time to avert a 1929-style depression. “The resulting skyrocketing debt will doubtless weigh on future generations, but, for now, it seems the only game in town to reboot national economies by making them even more debt addicted. “For this entire house of cards not to crumble, growth and inflation need to be restored. It is the only way to repay the debt legacy of the crisis.” The US Federal Reserve

Open Market Committee said in its March minutes published on Wednesday that the risk of higher inflation is roughly equal to lower-than-expected inflation. The minutes said that “most participants noted that they viewed the risks to the outlook for inflation as broadly balanced”. US Treasury Bonds rose by 75 bases over the first four months on this year from 0.9% to 1.65%, which the FOMC said was partially down to “highly accommodative”

conditions. The minutes said: “Participants commented on the notable rise in longer-term Treasury yields… generally viewed it as reflecting the improved economic outlook, some firming in inflation expectations, and expectations for increased Treasury debt issuance.” Although forecasts inflation has been revised up by the Fed 2.6% this year, it will not be withdrawing Covid-19 support

including asset purchases of $120bn per month and close to zero interest rates. Last month, ratings agency Moody’s said that inflation in India is at an “uncomfortably high” level, as retail inflation rose by 0.9 percentage points monthon-month in February to 5%. It said that the rise in inflation leaves no further space for rate cuts from the Reserve Bank of India. Publicfinancefocus.org

S. Korean battery makers agree $1.8 billion settlement, and not raise further lawsuits LG lost to SK in a bid for VW orders, aiding Biden’s EV push then accused SK of stealing trade against each other for 10 years.

outh Korean battery makers LG Energy Solution and SK Innovation Co agreed on Sunday to settle disputes over trade secrets dispute, avoiding a potential setback for U.S. electricvehicle (EV) ambitions. The settlement by affiliates of two of South Korea’s biggest conglomerates comes hours before a Sunday deadline for the administration of President Joe Biden to decide whether to take the rare step of reversing a U.S. International Trade Commission decision (ITC). The core dispute had threatened the EV plans of Ford

Motor Co and Volkswagen AG, as well as a Georgia plant that is key to the growing industry. The resolution is a win for Biden, who has made boosting EVs and U.S. battery production a top priority. The global auto industry is racing to develop EVs, and Biden has proposed spending $174 billion to hike their sales and expand charging infrastructure. SK Innovation agreed to pay LG Energy Solution, a wholly owned subsidiary of LG Chem Ltd , 2 trillion won ($1.8 billion) in cash and royalties. The companies agreed to drop all litigation in the United States and South Korea

“The two companies now can coexist in the global market and compete in good faith,” LG Energy Solution said in a statement. SK said it would invest actively both in South Korea and abroad now that uncertainties for its EV battery business in the United States have been dissolved. Biden’s Office of U.S. Trade Representative faced a Sunday night deadline on whether to take the rare step of reversing a U.S. International Trade Commission decision unless the companies had agreed a deal. The administration, Volkswagen and Ford had been pushing the Korean companies to settle, sources briefed on the matter told Reuters. Trade Representative Katherine Tai was personally involved in the settlement discussions, urging the companies to come to a resolution, the sources said. Her office declined to comment before the agreement was announced in the Asia day. Ford and Volkswagen were not immediately available for comment outside of business hours. In the bitter two-year dispute,

secrets by poaching nearly 80 of its employees. LG filed a complaint against SK in 2019, and both sides hired numerous lawyers and consultants to make their case to the Biden administration. The ITC in February sided with LG after the company accused SK of misappropriating trade secrets related to EV battery technology. It issued a 10-year-import ban but allowed SK to import components for batteries for Ford’s EV F-150 program for four years, and VW’s North American EVs for two years. In March, SK vowed to walk away from the $2.6 billion Georgia battery plant, which is under construction, if the ITC decision was not overturned. LG said in March it could handle the battery needs of automakers if SK abandoned the Georgia plant. Volkswagen of America CEO Scott Keogh wrote in a LinkedIn post on Wednesday that if the ITC decision were left in place, it could “reduce U.S. battery capacity and delay the transition to electric vehicles.” Reuters

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CONTINUED FROM PAGE 11

Is Ghana experiencing a new strand of ‘dumsor’?

Is this the way to handle a sector that has huge political points?

for such works. This was to be done around 2019 and 2020.

Government should be allowed to make clarification on this event. As to why or why not, it is not prudent to store enough fuel irrespective of it being in use or not. The past Power Minister’s claim was based on authority. Where and how credible his source is, we may not know. However, there is some level of credibility in his speech especially having occupied the position in the past and hence his claim could be true. Not because he is in opposition but because he passionately saw this coming. In first quarter 2018, PURC and Government announced a tariff reduction for electricity. This decision was going to affect the revenue generation for the sector in the future. When GRIDCo was invited to parliament, they complained that, as a result of this action, they were going to lose close to GHs 300 million in revenue and the impact was going to push them to suspend and put on hold certain critical maintenance and expansion works at certain critical areas in terms of transmission. However, with plans to make expansion around Pokuase, Kintampo, Kumasi and some parts of Accra, they were not carried out at the time because of shortfall in revenues and monies

Are these the works being carried out now?

Should we as a country, have another National Scheme to solving the “Dumsor” problem? Do we already have one that is broken down into; • National Electricity Distribution Scheme • National Electricity Transmission Scheme • National Electricity Revenue Collection Scheme

economy in all sectors to help fight Climate Change. Moreover, with efforts being made on emobility globally, are we prepared to have a section of our transportation relying on our troubling electricity sector? Do we have the excess generation capacity to accommodate and support emobility, increasing industrialization, residential, commercial and the street lighting class?

If we do have, is it guarded in a way to be forward moving irrespective of the Government in power?

Are we willing to privatize some sectors of the chain to ensure efficiency and profiteering?

Is this the reason why Government now wants citizens to pay for the utility used in the past?

Will funds made available for such works be protected and tied to the works they are meant for?

Will the monies raised be used to offset some losses, or will it be injected into the “dumsor” solving plans?

For the other reasons for which dumsor is said to be happening, which is in the transmission and distribution, close to 21.9% of electricity consumed is being lost annually. Having stated the above, efforts should be made in diversifying our electricity generation mix and having a resilient revenue collection strategy since it looks like there is no problem in generation and efforts is being made currently on the transmission and distribution gaps. Ghana as a nation should be moving towards a net zero

The solution to these problems can only be analyzed and discussed. The implementation and execution of findings and results lie in the hands of leadership.

Aside the shortfall in revenue, in the procurement of robust equipment for the expansion or maintenance works, purchase is made in USD, and with the Ghana Cedi depreciating against the dollar, the reduction in tariffs and the free electricity during the lockdown period, these were reasons which further stifled GRIDCo off cash to carry out these works.

In the past, around 1990, when electricity accessibility was a challenge around 15-20%, Government introduced the National Electrification Scheme (NES) and this was to implement a National Electrification Master Plan by 2020. This scheme till date, has been the most successful scheme in the electricity sector since it increased accessibility to from 15-20% to 82.5% in 2016.

Will leadership consult key sustainable energy analysts to help build a robust energy sector? The decision again, lies in the hands of leadership to implement the solutions we have and deliver the breakthrough we need. Writer: Donald Marshall Company: Mframadan Energy Management & Research Institute (M.E.M.R.I). Contact: 00233-24-4550854 Email: donaldamus@yahoo.com

MONDAY APRIL 12, 2021

Opinion

MONDAY APRIL 12, 2021

Bridging traditional agriculture and technology Linking agricultural and commodity producers and buyers to secure competitive prices and guarantee quality, GCX is on a mission to promote commodity value chains and create new opportunities for economic growth.

Tucci Goka Ivowi, CEO, Ghana Commodity Exchange

s is with organised markets, the Ghana Commodity Exchange (GCX) is a platform or marketplace that brings buyers and sellers together in order to exchange goods in a structured and efficient manner while guaranteeing the market settlements of agreed quality and quantity of commodities, as well as prompt payments. In line with Ghana’s governmental policy and flagship programme ‘Planting for Food and Jobs,’ the GCX is currently focusing upon spurring the industrial development and economic growth of Ghana and West Africa’s agricultural sector. “In the short-term our geographical focus is Ghana and we have started with spot contracts for immediate settlement (payment and delivery),” explains Tucci Goka Ivowi, CEO of the Ghana Commodity Exchange, “the premise being that if you can establish infrastructure and make sure that product delivery is working well in the country, trust is built in the market before you start bringing other contracts or products into the equation. Further down the line

we will be looking to expand geographically.” Officially launched in November 2018, the GCX’s members include traders, processors, food system providers, aggregators, brokers, and farmers. A key aim of the Exchange is to provide farmers with access to fair and better prices and access to information through market data dissemination directly via phone and access to finance through products like e-warehouse receipt financing. “We took a very deliberate approach to start slowly and build in phases, starting with one building block at a time,” affirms Ivowi. “We started out by listing maize from one warehouse. After that we listed soybean, sesame and sorghum and are hoping to list rice shortly. It is really one commodity at a time, one warehouse at a time. We now have 10 warehouses or delivery centres across the country, mainly in the middle and northern belts of Ghana.” The GCX links Ghanaian smallholder farmers to agricultural and financial markets in Ghana, as well as across the West African region, and guarantees farmers with

competitive prices for their crops while meeting food security demands. The warehouses allow farmers to deposit commodities and trade to diverse buyers and are supported by a collateral management system enabling warehouse operators to issue electronic warehouse receipts (e-WRs), which in turn can be used as collateral for loans. “One of the roles we play is bringing modernity through technology and this, in turn, brings an increased interest from our youth. The potential in agribusiness is immense; trading through a system like the GCX which is electronic and very hightech, is enabling aggregators to establish brokerage businesses and farmers are tapping into the technology. It is quite exciting. It is a simple system that our members are capacitated to use, yet a system that can facilitate one million contracts traded daily and has been built according to international standards.” The Ghana Commodity Exchange, in addition to its main mandate of providing a regulated electronic market-place, also undertakes capacity building for smallholder farmers and market actors in general. These farmers

and market actors are trained on post-harvest loss reduction management practices, grain handling techniques, grading standards adopted by the Ghana Standards Authority (GSA), the GCX warehouse receipts system and benefits, obtaining loans through GCX warehouse receipt financing system and trading on the Exchange. The farmers and market actors gain valuable skills in general agronomic practices and trading. Commodity exchanges are critical drivers of economic development and transformation and GCX is proof of this. Through harnessing the power of the collective action needed to grow agribusiness, enhance the food supply chain and boost the nation’s economic growth, the GCX has opened up an incredible amount of opportunities for Ghana and West Africa’s exports, as well as increasing competiveness in global markets. Ivowi concludes: “The Ghana Commodity Exchange has brought a new dimension to agriculture, agribusiness and trade in Ghana. It will also be catalytic for trading behaviour and relations, both intra-Africa and across the globe.”

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