Business24 Newspaper - August 10, 2020 by Business24 Online

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MONDAY AUGUST 10, 2020

Official data show record fall in sea-borne trade Rising debts to GRIDCo could risk power stability The Institute of Energy Security (IES), a think tank, has cautioned that the country’s power stability may be affected if the companies that owe the Ghana Grid Company (GRIDCo) do not repay their debts soon. BY BENSON AFFUL

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Down by a record: maritime cargo volume shrank by 44.9 percent year-on-year in the first quarter.

BY PATRICK PAINTSIL

fficial first quarter trade figures released by the Ghana Shippers Authority have revealed the severity of the impact of Covid-19 on the country’s maritime sector, with significant declines in all aspects of the business. The total volume of cargo—comprising both containerised and general cargo—handled by the country’s two seaports in the first quarter of 2020 decreased by a whopping 44.9 percent year-on-year, the data showed. The volume recorded was 3.8m metric tonnes compared with the 6.9m metric tonnes recorded for the same period of 2019.

The import trade volume for the first quarter stood at 2.7m metric tonnes, representing a 24.5 percent fall year-on-year, while the export trade volume registered 996,331 metric tonnes, representing a 66.1 percent fall year-on-year. The total volume of transit cargo—that is, cargo moved to Ghana’s landlocked neighbours—and transshipped cargo—that is, cargo moved to neighbouring ports by sea—was 79,629 metric tonnes, indicating a 76.1 percent drop year-onyear. The transit volume alone amounted to 72,212 metric tonnes. Of this, imports recorded 54,581 metric tonnes, representing a 79 percent decrease over the 256,515 metric tonnes recorded for >> MORE ON PAGE 2

Common Platform has yielded substantial savings, says Comm. Minister

Financial sector clean-up was providential, says Addison Governor of the Bank of Ghana Dr. Ernest Addison has said that the clean-up of the banking sector positioned it in better stead to withstand the shocks of the COVID-19 pandemic. BY NII ANNERQUAYE ABBEY

Cocobod’s farmer data to check ‘rot’ in sector

An estimated GH¢300m in tax revenue has been saved to date since the start of implementation of the Common Platform (CP) in the first quarter of 2017, Communications Minister Ursula OwusuEkuful has told parliament.

The Ghana Cocoa Board (COCOBOD) is finalizing work on a cocoa information management system that is expected to help curb the recent challenges with cocoa purchase and protect farmers...

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ECONOMIC INDICATORS *EXCHANGE RATE (INT. RATE)

US $ 1 = 5.6797

*POLICY RATE

14.5%*

GHANA REFERENCE RATE

15.12%

OVERALL FISCAL DEFICIT

11.4 % OF GDP

PROJECTED GDP GROWTH RATE AVERAGE PETROL & DIESEL PRICE:

0.9% GHc 5.13*

INTERNATIONAL MARKET BRENT CRUDE $/BARREL NATURAL GAS $/MILLION BTUS GOLD $/TROY OUNCE CORN $/BUSHEL

43.22 1.79 1,842.40 329.50

COCOA $/METRIC TON

1,562.00

COFFEE $/POUND:

$109.65

COPPER USD/T OZ.

220.15

SILVER $/TROY OUNCE:

17.07

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EDITORIAL 1

Wash your hands 2

Cover your cough

Localised outages must be checked The country recorded a net electricity export (export minus import) of 1,227 GWh in 2019, double the net export figure of 600 GWh in 2018 and also the highest level in two decades. Indeed, the Energy Commission data show that two decades ago, in the year 2000, Ghana was a net importer of electricity, with 864 GWh—or 13.7 percent of the total generation—imported as against 392 GWh—or 5.9 percent of the total generation— exported. Ghana’s sharply increased net electricity export partly reflects the surge in installed electricity generation capacity, which increased from 1,652 Megawatts

(MW) in 2000 to 5,172 MW in 2019, representing an annual average growth rate of 6.2 percent. In the same period, dependable capacity increased from 1,358 MW to 4,695 MW. The period between 2012 and 2019, in particular, experienced a rapid expansion in installed capacity, from 2,280 MW to 5,172 MW, representing an annual average increase of 12.4 percent. This has led to a situation where installed electricity capacity significantly exceeds electricity demand, which peaked at 2,804 MW in 2019—made up of both domestic and export demand. The data notwithstanding, there

have been reported localized outages in various parts of the country. For the full realization of the increased electricity output, there ought to be a corresponding increase in transmission infrastructure. Indeed, the Ghana Grid Company Limited (GRIDCO)-the transmission entity-- and the Electricity Company of Ghana Limited, the main distribution company, should be supported to retool their existing infrastructure to curb localized outages.

Official data show record fall in sea-borne trade 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)

CONTINUED FROM COVER

same period of 2019. Transit export recorded 17,631 metric tonnes, representing a 6 percent dip over the 18,824 metric tonnes recorded in the previous period. The Port of Tema handled 2.96m metric tonnes of total seaborne trade in the first quarter, representing 79 percent of the total, while the remaining 804,437 metric tonnes was handled by the Port of Takoradi. Covid-19 has affected global trade negatively, with global merchandise trade falling by 3 percent year-onyear in the first quarter of 2020, according to the World Trade Organisation. Ghana’s economy is projected to grow at its slowest pace in nearly four decades due to the effects of the pandemic. Real GDP is forecast to grow by 0.9 percent this year, a steep decline from the 6.5 percent growth rate recorded in 2019. The sharp reduction in maritime trade activity was

largely responsible for the fall in international trade tax revenue received by the government during the first half of the year. According to the government’s 2020 revised budget statement presented in July, trade tax revenue fell by 28 percent year-on-year in the period, registering GH¢2.0bn as against

GH¢2.77bn in 2019. With the pandemic still raging, maritime trade activity is likely to remain depressed relative to a year ago, although the rest of the year could see a pick-up owing to the substantial easing of the restrictions which were earlier imposed to contain the spread of the virus.

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Rising debts to GRIDCo could risk power stability BY BENSON AFFUL

The institute said aside the Electricity Company of Ghana (ECG), the indebtedness of the Northern Electricity Distribution Company (NEDCo), the Volta Aluminum Company (VALCO) and some mining companies to GRIDCo has contributed to the financial woes of the power transmission company. “The debts owed by these companies to GRIDCo is rising to unprecedented levelsand may likely render GRIDCo incapable of executing its critical projects that would make the national transmission system robust and improve reliability of power supply,” the energy think tank told Business24. According to IES, ECG’s debt to GRIDCo has increased by 31 percent to GH¢1.11bn in June 2020 from GH¢850.99m at the end of 2019. NEDCo’s indebtedness increased from GH¢227.33m

to GH¢270.47m over the same period, while VALCO’s went up from US$33.92m to US$35.36m. The IES said the situation could negatively influence the day-today operations of GRIDCo and could stall the many key projects being undertaken by the company to improve its operations and efficiency. The debts may also make it difficult for the power transmitter to meet its financial obligations to financiers, contractors, suppliers, and service providers. “For three consecutive years, GRIDCo has been recording losses, with a net loss of GH¢114.3m in 2019. Even in 2015, when GRIDCo produced good financial results, with total revenue of GH¢472.35m and net profit of GH¢44.80m, most of the profit recorded was in debt,” the think tank said. “The current happenings thus clearly indicate that the year 2020 may experience another round of

losses for state power utilities,” it added. Remedial actions The IES said the toughest leadership test is approaching, where government and its allied institutions in the power sector would have to show how they intend to bring back power utilities into cost-effective and profitable ways. “Most critically, government must proffer new ways in which to recover revenues owed GRIDCo from institutions, whether private or state, and from the Energy

Sector Levies Act (ESLA) Fund,” the IES said. According to the think tank, ECG must deal with the high commercial and technical losses in its system, and must commit to clearing all the debt owed GRIDCo, to guarantee reliable power supply to its distribution network. It said GRIDCo must also consider cutting back on some expenses, including capital expenditure, and focus on things that are necessary to produce a robust transmission system to manage the current challenges.

Financial sector clean-up was providential, says Addison BY NII ANNERQUAYE ABBEY

Presenting the keynote address at this year’s edition of the Ghana Institute of Management and Public Administration (GIMPA) Biennial Law Conference, Dr. Addison described the clean-up as providential. “It is by providence that the financial sector clean-up was undertaken at the time that it took place, as heading into the pandemic, Ghana had already turned the fortunes of the banking system around and restored confidence in the sector. All the financial soundness indicators, measured in terms of earnings, liquidity, and capital adequacy, showed significant improvement. We had put into place a framework to strengthen banks’ capital,” the governor said. The central bank undertook a clean-up of the financial sector which has so far cost the taxpayer more than GH¢21bn. The two-year long exercise covered the resolution of 420 institutions, made up of insolvent banks and specialised deposit-taking institutions (SDIs). These included nine banks, 15 savings and loans companies, eight finance houses, 347 microfinance institutions, 39 microcredit institutions, one leasing company,

Caption for banking sector story: Dr. Ernest Addison believes that but for the clean-up, the pandemic would have had dire effects on the banking sector GridCo debtors caption: The energy policy think tank wants a speedy resolution of debts owed to GRIDco by other power companies among others

and one remittance company. The Bank of Ghana had explained that the mass licence revocations were necessary to clean the financial sector and reduce contagion risks while creating an environment for stronger and well-run institutions to thrive and play their expected intermediary role of supporting the economy. Major test Dr. Addison, whose address was on the theme, “The Banking and Financial Sector Crisis in Ghana: Towards Sustainable Reforms”, said although the pandemic has presented an unprecedented negative shock to the economy and a major test of the resilience and robustness of the banking sector, the central bank has risen to the challenge with policy measures to

protect the financial system and support the real economy. Some of the measures he listed include the March 2020 lowering of the monetary policy rate by 150 basis points to 14.5 percent, the lowering of the cash reserve requirement ratio to allow banks access to additional liquidity, and restraining banks from paying 2019 dividends to preserve capital and liquidity. According to Dr. Addison, in the aftermath of the pandemic, the central bank will pursue a careful unwinding of countercyclical measures that it has implemented and allow the financial system to function without the regulatory forbearance that it has put into place. “Banks will have to be vigilant and

upgrade their capabilities, improve governance and risk culture, and we are optimistic that with this approach, we will build a robust, resilient and capable financial sector to support Ghana’s Beyond Aid Agenda,” he said. Going forward, Dr. Addison added, the financial sector will require constant regulatory and policy attention to mitigate the risks. The economic impact of the pandemic, he explained, may result in higher non-performing loans and capital erosion of banks, with the recapitalisation of the SDIs becoming necessary to improve their resilience and enhance the safety of depositors’ funds. “The Bank of Ghana is putting greater focus on identifying the early warning signals and initiating prompt corrective action. The symptoms of weak banks are usually poor asset quality, lack of profitability, loss of capital, excessive leverage, excessive risk exposure, poor conduct, and liquidity concerns. These symptoms are often caused by inappropriate business models, poor governance, poor decision making by senior management, misalignment of internal incentive structures with external stakeholder interests, and poor supervision,” he said.

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Cocobod’s farmer data to check ‘rot’ in sector BY EUGENE DAVIS

...Dr. Emmanuel Opoku, Deputy Chief Executive in charge of Operations, COCOBOD has said. Reports on the use of defective scales are being used to cheat farmers in the Western, Eastern and Ashanti regions by licensed buying companies has been rife in the media over the past two weeks. COCOBOD, therefore, believes that the cocoa information management system will help monitor the entire supply chain. “We are also confident that COCOBOD’s Farmer Data/Cocoa Information Management System, which is underway, when ready will improve overall monitoring of the supply chain including purchasing, weighing and grading of cocoa, enhance records keeping, allow the early detection and flagging of inconsistencies and anomalies in records and ease traceability. Detected issues can then be promptly addressed,”Dr. Opoku said. He also added that the management of COCOBOD, as presently constituted, has maintained a farmer-focused

approach to regulating and managing Ghana’s cocoa sector, hence the introduction and intensification of Productivity Enhancement Programmes (PEPs), such as, the mass pruning exercise, the hand pollination exercise, the subsidised fertilizer distribution, the cocoa rehabilitation programme, among others. The overarching aim of the PEPs and the achievement of the Living Income Differential (LID) is to safeguard the immediate and future welfare of cocoa farmers by improving their earnings, so, they can afford improved standards of living, Dr.Opoku maintained. According to Dr.Opoku, continuous monitoring and policing will be necessary to ensure the effective implementation of such a measure to eliminate a systemic problem. “The work of the media in shining light on the situation and improvement as we progress, as well as the vigilance of our field staff and the cocoa farmers themselves, will together play a crucial role in eliminating this cocoa canker”.

DR. EMMANUEL OPOKU, DEPUTY CHIEF EXECUTIVE IN CHARGE OF OPERATIONS, COCOBOD

AirtelTigo unveils “Free Morning Offer” with free morning calls for six months In a first of its kind offer, telecom operator AirtelTigo has launched a ‘Free Morning Offer’ to give new and existing customers free AirtelTigo to AirtelTigo calls from 5am to 10am every day for the next six months. In addition to the free calls, new customers will also get to enjoy free AirtelTigo Money to AirtelTigo Money transfers for six months. The Free Morning Offer, like all AirtelTigo products, is based on the voice of the customer and consumer insights. “We Ghanaians love talking to friends, loved ones early in the day. And, as part of our dealings, send money to each other. Our offer has been made based on this simple yet compelling insight,” disclosed the Chief Marketing Officer at AirtelTigo, Atul Narain Singh at the launch in Accra. He added: “Delighting customers is an obsession for us. By making it absolutely easy for them to have unlimited conversations every morning and free transfers on our network for six months, we are once again providing great value to our customers and making their

life simple”. AirtelTigo’s Chief Sales Officer, Abubakari Halidu, explained how simple the process of getting the offer was. “All a customer has to do is to buy a new AirtelTigo SIM, register for an AirtelTigo Money

account, do an AirtelTigo Money transaction, and, lo and behold – get six months of free AirtelTigo calls free from 5am to 10am as well as free transfers to AirtelTigo Money customers.” He also explained that existing

AirtelTigo customers can activate the offer by dialing *110#, select option 2 and purchase the offer using their AirtelTigo Money account for just 2 GHS.

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Business going concern in COVID-19 times BY RICHIESON GYENI-BOATENG, CAMS

The COVID-19 pandemic has brought about or created a lot of uncertainty which is making it difficult for businesses to predict the future in terms of their business operations. With a lot of lock down restriction imposed by government(s) and closure of non-essential businesses, Business Executives are worried about their company’s ability to generate sufficient cash flows to support operations. Some companies are also struggling with their debt covenant, liabilities to stakeholders (such as employees, shareholders, suppliers, vendors) and this has or is affecting companies’ ability to continue operations under the going concern assumption. As companies contend with the economic impact of the global pandemic and the related risks, challenges and uncertainties posed, management should be prepared for heightened auditor scrutiny in areas with going concern relevance. Although some companies, sectors and jurisdictions may be more affected by this pandemic than others, all companies across all jurisdictions need to consider the potential implications for the going concern assessment. It is clear that companies in highly exposed sectors that are experiencing declining demand, falling sales and margin is the most impacted, particular mention can be made of the travel and tourism, hospitality/ entertainment/ sport, retail and the oil industries. It must be pointed out that a profitable business might not necessary be a going concern business, especially in periods of negative cash flows. Going Concern is an accounting term for a company that has the resource needed to continue operating indefinitely until it provides evidence to the contrary. It is assumed that every business will continue to be in existence into the foreseeable future. Management of business need to assess the business going concern and assure its stakeholders of its continuous existence for at least the next financial year. In performing their duties, External Auditors are expected to provide assurance over the going concern of the business. Accountants who view a company as a going concern generally believes a firm uses its assets wisely and does not have to liquidate any of its assets. In this Covid 19 times, the going concerns of businesses need to be assess by finding answers to the

following red flags questions: • Has the business loss its major supplier or customer due to the Covid 19 pandemic? Eg. As it is the case in the hospitality and aviation industry. • Can the business survive if this pandemic continues for the next 6 months? • Is the business able to meet its contractual obligations without substantial restructuring or sale of asset in this Covid 19 times? • How does the financial trends of the business look like? Is the business financials looking positive or negative? • Can the business reinvest in new product development? • Has work operations come to a halt due to Covid 19? Are people patronizing the goods and/or services of the business? • Is it possible to access other sources of capital and the ability to develop a reasonable forecast? • Has the business operation come to a halt and labor force asked to go home? • Are there legal proceedings against the company for breach of contract or nonperformance of contract? • Are there significant deterioration in the value of assets used to generate cash flows? Since it has been established that Covid 19 will impact on the going concerns assessment of companies, companies are required to disclose material uncertainties that Covid 19 presents that may cast significant doubt on their ability to continue operations. Significant judgement will be required as no two entities, even if operating in the same industry, will be the same, but at the end of the day there will be one central

question to answer, will the company have sufficient cash flows to meet their existing obligations and alleviate any conditions that raise substantial doubt about the ability to continue as a going concern in this Covid 19 times? Raising additional capital through debt or equity offerings, reducing compensation, deferring planned expenditures, cost rationalization, employee layoffs or obtaining government stimulus relief are some of the strategies business executives need to deploy when faced with going concerns risk in this time of Covid 19. Companies affected by the Covid 19 pandemic should take advantage of the various stimulus packages being offered by the government and other institutions (such as the banks and other financial institutions). A change in business operation to reflect the current situation will also go a long to manage the going concern risk the company is exposed to. Covid 19 has thought us that remote working and digitization is the way to go to survive. Innovations in the products and/ or services rendered will go help to stay afloat in time of uncertainty. Another strategy that can be adopted to stay afloat during periods of uncertainty is to do or render better goods or services than concentrating on doing producing or rendering more goods or services. Business Executives should re-evaluate and re-prioritize everything they do. They should evaluate their business offers against current and real time needs by trying to answer the following questions: • Is there anything that the business can start in this current situation? • What business operations and/ or products can we stop or scaled back? • What products or operations

give us high- leverage to continue to do? A business facing going concern risk in this covid 19 times could manage the situation by getting creative and replacing marketing efforts with unconventional, low cost, high impact activities such as launching of a customer referral program, building a social media contest for customers, making yourself and/ or business newsworthy etc. The last but not the least strategy is for Business Executives to Look to others for support and ideas. Get in touch with your chamber of commerce and industry players for resources and latest updates. This will help share ideas with others facing the similar challenges and provide alternatives to come out best. Even if management and auditors ultimately conclude that sufficient mitigating options are available to reduce the going concern risk to an acceptable level, and disclose them in the audit opinion and financial statements, the presence of a going concern emphasisof-matter paragraph, based on the language of the related debt covenants, could present significant risk for a company. Management, in consultation with internal counsel and others, should carefully consider how a going concern opinion could impact their company’s ability to continue operating through the uncertain time ahead. Would you mind doing me a favor? Share this article with someone so that the awareness about the effects on Covid 19 on the business operations with regards to the business’ going concern. IF YOU REQUIRE FURTHER INFORMATION ON THIS ARTICLE, PLEASE CONTACT RICHIESON @RICHIESON.GYENIBOATENG@ GMAIL.COM

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Impact of COVID-19 on Fintech trends and consumer behaviour

ovid-19 on its initial start appeared to be a very distant disease in faraway Asia. From December 2019 to February 2020, nearly everyone outside of China paid no serious attention to it. Traveling through Ethiopia to Uganda in February 2020, it was observed that hardly anyone wore a face mask nor practiced social distancing. It was simply business as usual. However, a month afterward, the disease has spread rapidly and moved into mainstream Europe. Subsequently, the World Health Organization declared it a global pandemic. This is when governments began to react and implement wholescale lockdowns and restrictions. Financial technology companies (Fintechs) in Africa were compelled by governments to apply for some mandatory fee waivers. Across Rwanda, Uganda, Ghana, and other big mobile money countries, various fee waivers were implemented. During the lockdown, there was a heavy decline in cash-based transactions like agent cash-in and cash-out. These government measures and new customer behavior set a tone for fintech to rethink their offerings. Fintechs quickly had to react as their bottom lines were seeing the direct negative impact. A situation that was very different from the initial spike which resulted from the pre-lockdown announcement as consumers engaged in panic buying. As predicted subsequently, Covid-19, in the absence of a vaccine continues to spread and forces consumers to re-adapt to a new normal way of life. Fintechs have been compelled to adjust their ways of working to this new customer behavior. They are rapidly deploying innovative selfservice solutions to harness the full benefit of consumers desiring to have full end to end solutions on the go without physical contact. They must be prepared not just to accommodate this increased demand but also to scale up their enterprise IT infrastructure while adapting to the new world, just like everyone else. Acquiring new IT infrastructure has a direct Capex impact. Smaller Fintech start-ups are likely to be overwhelmed by the sudden budgetary requirements to scale up. Ultimately, some may drown out even as they struggle to meet other financial obligations to continue operating. However, more established Fintechs can easily expand and quickly roll out expensive solutions that target a

new market segment and in the short-term increase transaction volumes significantly. Another critical impact is the specific product categories of Fintech. As consumers are more focussed on essentials during this pandemic, they are likely to be taking advantage of microloans. The bigger the appetite for microloans, the bigger the risk for the loan provider as many consumers are unlikely to service these loans. This will directly affect Fintechs in this space in the near future. Until more robust risk assessment procedures are implemented, their profitability may be negatively impacted. Another risk category is international remittance. This is the direct opposite of lending. Consumers during this pandemic will be more reluctant to remit cash and be very open to accepting cash. This is a cautionary behaviour as they may be considering uncertainties regarding their income sources as job cuts become frequent. Fintechs that solely operate in this space may consider switching to more attractive portfolios like B2B and bill payments which have lower risk factors. Fintechs that strongly survive the varying economic challenges posed by this pandemic are likely

to build a brighter future and define new processes and ways of working that will ultimately favour them by building a robust system that is able to withstand future disruptions. The combination of consumer behavior and the economics of delivering financial services point to the need for a digital-first financial organization. Furthermore, by taking advantage of work from home policies, start-ups and even mainstream organizations can invest in cost-effective video conferencing and remote working tools that eventually cut down on the operational cost of running physical locations. Communication is also essential in building customer trust while establishing a much more grounded niche and credibility. During this period, the customer expects near real-time feedback for queries they raise. It is important for Fintechs to step up their customer support systems and have a more proactive approach in dealing with customer complaints and queries. Further investment in more interactive customer support tools may be required. Even though such investments may significantly increase budgets of Fintechs, it will in the long term build a strong reputation that will long outlive this turbulent time;

thus, increasing the prospects of significant future gains with the customer. Overall, we are not out of the woods even though governments have been compelled to ease out lockdowns in other to water down the economic impact of the pandemic. As the world shifts towards a new reality, there will be an explosion of post-pandemic opportunities. People will realize the digital tools on which they have relied during this disruption are in fact providing long term important services. The posture of Fintechs in this era and the nature of systems and processes they build will certainly determine the new direction of their business once this pandemic is over. Covid-19 is the ultimate test of Fintechsâ&#x20AC;&#x2122; business continuity plans, technology, processes, and portfolio. It is safe to say the new normal has come to stay. Fintechs have only one option: â&#x20AC;&#x153;Innovate or die!â&#x20AC;?

Peter Frank Eshun is a senior business analyst and member of the Institute of ICT Professionals Ghana For comments, contact: pfeshun@ gmail.com, +233243800005 LinkedIn: https://www.linkedin.com/ in/peter-frank-eshun-2340a328/

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Quality goes much further than quantity!

BY BUSINESS FOR BREAKFAST (BFORB)

n business, there has been a continuous discussion on the basis of Quality vs Quantity. There are many bosses or managers who focus on quantity as opposed to quality of work. While, there are others who want both quality and quantity in the shortest amount of time possible. There are very few that prefer quality over quantity. Quality is subjective, whereas quantity is not. Quality is subjective to each individual’s opinion. One person might think that something is of great quality, whereas another might think that it is of low quality. However, one cannot dispute quantity. If there are five things, then there are five things. One cannot claim that there are four or six. Basically, quality is a measure of excellence or of a state of being. It describes something, either of how it was made, or how it is as compared to others. Quantity, on the other hand, is the extent, size, or sum of something. It is countable or measurable, and can be expressed as a numerical value. The same applies in business networking! Almost everyone attends business networking events these days. It’s the norm to try

to grow your business and build quality relationships. But ask yourself a question: out of those relationships you try to build, how many are empty promises? Networking experience has taught us that you sometimes meet the odd genuine one, but too often you get the hangers on; the ones that are only interested in what they can get from you, rather than giving as well as taking. We have, over the years, carried business owners with us, thinking nothing of it and passing them lots of business; but then received nothing in return. Not so much as one referral or inviting guest to our meetings. Honestly, sometimes it is so tempting to relinquish relationship with those businesses, so they can find their own referrals! Networking has been a big part of our business life. We love supporting other business owners, and we genuinely don’t ask much in return. And that’s why, we decided to expand into the Africa market, starting from Ghana. What we like specifically about Business for Breakfast (BforB) is that the meetings run along the same principles of running your own events: bringing together quality business owners and likeminded businesses who can do business with each other – but in a relaxed, friendly environment, free of any expectation, and

certainly with no one ever under pressure. Essentially, we all support each other, and benefit from each other’s knowledge and experience. So here’s a question: would you rather attend an event with 50plus businesses represented in the room, only a handful of which you really get to know or exchange referrals, or 15-20 quality business owners? To have 15 quality business owners in a room is, in our opinion, far better to establish your credentials, and for you to both grow together. In our experience, networking with 50 business takes a lot longer to build relationships, and the chances are – as we found far too often – too many only want to see what they can get out of you, which is soul destroying. With BforB you are joining a family; and as some of our members have found out, they are getting referrals not just from within their own groups, but are also working with other groups in the country. This is a fantastic opportunity for all involved. We would welcome any businesses who is serious about growing their business by developing loyal and reciprocal relationships to join us. We have worked in the sales and marketing industry since 2001,

and have vast knowledge of many sectors. We have been around the business networking scene for more years than we care to remember, and experience has taught us what works and what doesn’t. But we love it when we bring business owners together to network in groups, we passionately believe in the BforB format.

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: 059 4 016 432 | info@ bforbgh.com | Facebook & LinkedIn: @ bforbghana | www.bforb.co.uk

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The role of health services innovators in the future of health BY STEVE MARGOLIS, PETER MICCA, MAULESH SHUKLA, & JESSICA OVERMAN

iven the pandemic’s exposure of the many challenges with the current health care system, many inside and outside the industry agree that transformation is needed and seek a future driven by consumerism, data availability and use, and digital and scientific innovation. This vision requires significant business model transformation by many incumbents—health care providers, health plans, and life sciences organizations—as well as new entrants spurring change in the industry. Many health care observers think the term “new entrants” consists primarily of large retail and consumer technology organizations entering the health care industry. Some have reported on the market activities and strategies of these large retailer and consumer technology companies with a mix of capital, capabilities, and purpose. However, another group of organizations is bringing about innovation in health services through new approaches, solutions, and technologies. We call them health services innovators. These new entrants have distinct characteristics that differentiate them from the industry incumbents and the large new entrants—they are nimble, tech-enabled, consumerfocused, and led by industry experts. We interviewed chief executives of several health services innovators at the height of the COVID-19 pandemic from February–April 2020 to understand their perspective on where the industry is heading, how the pandemic could affect industry transformation, and to learn more about how they see their role in achieving that future. Research findings In the next 10 years, health care is expected to be more consumercentric, affordable, and tech-driven Like the incumbent CEOs we spoke with late in 2019, chief executives of the health services innovators say that the three biggest changes to the industry in the next 10 years will center around: • Consumer-centricity • Evolution of value-based care and affordability • Pervasive use of advanced technologies and analytics Consumer-centricity: As consumers become more involved

in their health care choices, it is imperative for the industry to become more consumer-centric. It begins with data access and transparency at each stage of decision-making. Historically, consumers have had to deal with a lack of transparency in health care— both about health care costs and the value of services in improving their health. Without that information, they have had a hard time making informed decisions. The result, according to the chief executives of health services innovators, is a waste of time and money, and more importantly, poor health and wellbeing outcomes. “One of the biggest problems today is the lack of transparency and the inability for the average consumer to make informed decisions about their health care, particularly when it comes to what physician resources to avail themselves of— who to see, where to go, when to go is a complete mystery.” —Chief executive, health services innovator However, with the proliferation of data and more exposure to out-ofpocket spending, consumers are demanding more transparency and are gaining ground in their ability to make decisions about their health. For instance, over 40% of consumers today use personal technologies to measure fitness, compared to just 17% in 2013, and one in every two consumers would likely change their physician if they are dissatisfied with the communication aspect of the relationship, according to the Deloitte 2020 survey of US health care consumers.8 Chief executives of health services innovators believe several health care companies, including themselves, are making rapid strides in focusing more on consumers. In the next 10 years, they say consumers will have access to more accurate information which can promote informed decisionmaking and lead to better health outcomes.

Evolution of value-based care and affordability: Value can come from improving quality or reducing costs or both. However, according to the chief executives of health services innovators, current value-based care arrangements have focused primarily on cost reduction as a measure of success, not quality of care and outcomes. As valuebased care models mature, all stakeholders, including plans, providers, employers, and even consumers will likely demand higher quality as well as affordability. Chief executives of health care service innovators say that in the next few years, payment models will become more outcome-centered, and they expect to see increased transparency and availability of data about physician and health system performance to validate outcomes. “Health care innovation has to start to focus less on absolute therapeutic capability and more on how we deliver care and products and services that we know work to more and more people at a much lower price point, so it is much more accessible, and much better from a value equation perspective.” —Chief executive, health services innovator Pervasive use of advanced technologies and analytics: The health care system largely continues to focus on a 20th century model centered around an infrastructure of buildings, people, assets, and products. However, the chief executives of health services innovators believe mindsets are changing to a 21st century model that envisions data, platforms, interoperability, digital and virtual solutions, and data science insights as the new infrastructure. Increased use of technologies and analytics can help enable the shift to accessible, affordable, quality health care in the next 20 years, according to the chief executives of health services innovators. “Automating certain areas where

today they are going to be forced to automate certain workflows purely based upon solvency and surviving: That is going to last long into the future, in terms of saying why did we ever have a person doing this in the first place.” —Chief executive, health services innovator The COVID-19 pandemic is accelerating the industry’s transformation The chief executives of health services innovators agree that the COVID-19 crisis will have a lasting impact on how the industry functions. They say the pandemic will speed up the industry’s transformation in two major ways: Fixing today’s broken system: The pandemic has shown how many processes and experiences in health care are outdated. For instance, the lack of access to accurate data from multiple sources hindered care delivery, triage, and patient transfers. Additionally, amid the pandemic, several hospital leaders were still using outdated technologies such as faxes to communicate with physicians and other hospitals. It has revealed several opportunities to fix broken aspects of the industry, particularly in areas such as care delivery, collaboration, and affordability. The chief executives of health services innovators say that many health care leaders now understand the implications of these broken aspects and are ready to fix them. “COVID-19 is what’s needed to show people how inefficient our workflows are.”—Chief executive, health services innovator . Broad-based adoption of data and technology: The chief executives of health service innovators also agree the pandemic will accelerate widespread adoption of data and analytics and advanced digital technologies. For instance, CONTINUED ON PAGE 15

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adoption of virtual health tools, which otherwise might have taken years to reach today’s levels, accelerated rapidly. Technologies such as digital assistants will likely become common in patientfacing and internal processes. More data, interoperability, and analytics can also help in utilization management, population health surveillance, and real-time datasharing and communication with other organizations. “[Health organizations will look to] automate certain areas and workflows purely based upon surviving.” —Chief executive, health services innovator Health services innovators are partnering with incuments to deliver transformative solutions around care delivery, data and platform, and care enablement Innovators are partnering with incumbents to deliver transformative solutions Greater data and interoperability, increased access to care, and empowered consumers will likely be the main features of the future of health. Health services innovators are building capabilities and business models around: Well-being and care delivery: The innovators are working on solutions that enable sustained well-being for consumers and allow incumbents to explore innovative ways to deliver care. For instance, they are developing sensors, wearables, and digital apps that help generate novel

insights into patient health issues, help ensure medication adherence, and enable physicians to make informed care-delivery decisions. “If a physician is talking to a patient over the phone about medication, he would like to know how they are using them and how their body is responding. We can answer that in a scientific, data-driven way through our solutions.” —Chief executive, health services innovator Data and platforms: The innovators are partnering with incumbents to gather and assimilate data, clean it, and create data platforms and infrastructure that can help incumbents as well as consumers make quicker care decisions at a lower cost. For instance, they are creating platforms that make it easier for consumers to select physicians, including specialists. Innovators are also building AI platforms that use predictive analytics to improve quality and health outcomes. Their partnerships include those with health systems, health plans as well as pharmacies, value-based care conveners, and other community providers. Care enablement: The innovators are also building solutions that help increase access and convenience. For instance, they are developing flexible financing tools and partnering with health systems to deliver financing options to consumers and employers. In cases where some consumers are finding it difficult to pay their personal health care bills due to the COVID-19 crisis,9 innovators are partnering with health systems and insurance

companies to offer consumers lower interest rates, partnerships with credit card companies, and longer repayment time for their out-of-pocket expenses. These solutions aim to increase access to care by reducing financial barriers and health care navigation hurdles. The innovators are also easing physicians’ jobs by automating some time-consuming, mundane but important tasks such as adding diagnoses codes in documentation, ordering medication, and populating billing templates. “Access is going to get transformed, because everyone everywhere has a mobile phone. We will be able to do vastly more to support most people with a health problem using just a mobile device.”—Chief executive, health services innovator Partnerships with incumbents are key to broad-based transformation. Health services innovator chief executives told us they are focusing on transforming the industry not through disruption but are instead partnering with incumbents by improving areas where they feel incumbents have been slow to respond, including technology, data and information, and consumers. The health care incumbent CEOs in our earlier research said they are focused on investing in care management, digital tools, and consumer engagement technologies to better position themselves for the future. The chief executives of health service innovators said they are aligning their solutions to meet these burgeoning demands from incumbents.

“Through our solutions, if we can get more collaboration between the health plans, the employers, and the health systems, ultimately putting the consumers first, that is a real opportunity for us.”—Chief executive, health services innovator Shifting the industry toward the future together In our previous research, we asked the CEOs of health care incumbents for their views on several new entrants—both large tech and retail giants, and the health services innovators—entering the industry. They had mixed thoughts. Some were worried about competition, others dismissed them. However, incumbents may be overlooking the role of health services innovators as partners in helping them transform and improve the industry. There was a consensus among the chief executives of the health services innovators that they want to collaborate and improve, not compete and disrupt, the industry. The aftermath of COVID-19 may bring an opportunity for them to play to each other’s strengths. While they have been working together for many years, they envision more enduring opportunities for partnership and collaboration. Incumbents, with their industry experience, capital, and regulatory expertise, and Innovators with their tech-enabled, data-driven, and consumer-centric approach, can together push the industry toward the future of health. (Source: Deloitte Insights)

Aging economies may benefit less from fiscal stimulus BY STEVE MARGOLIS, PETER MICCA, MAULESH SHUKLA, & JESSICA OVERMAN

n the midst of the current COVID-19 pandemic, policymakers around the world are undertaking fiscal stimulus—a combination of spending increases and tax reductions—to support their economies. Even before the present crisis, the importance of fiscal policy has been increasing, with monetary policy constrained by near-zero interest rates. Our new staff research finds that age also matters when considering fiscal stimulus. Specifically, we find that fiscal policy isn’t as effective in boosting growth in economies with older populations, compared to economies with younger populations. As our chart shows, fiscal stimulus in economies with a younger population has a significantly positive effect on growth, but the effect is much weaker in aging economies.

We looked at 17 Organization for Economic Cooperation and Development countries from 1985 to 2017, and split the sample into two groups by looking at the ratio of old people among population. In the aging economies, the average oldage dependency ratio (defined as the ratio of people 65 and older to those between 15 and 64 years old) is 26.5 percent whereas in non-aging economies it is 18.9 percent. On a more granular level, an aging economy behaves this way because its labor force isn’t growing, while its public debt tends to be high, and, therefore, fiscal stimulus has weaker effects on private consumption and investment. This is because the working age population is more likely than retirees to benefit from fiscal stimulus through effects such as increased corporate hiring. Furthermore, many pensioners are on fixed incomes whose consumption remains steady or even declines over time. In addition, population aging could reduce potential growth (by lowering labor input and productivity), with which

fiscal stimulus may induce less private investment. The “older” the economy and the higher its debt, the less impact fiscal stimulus has on growth. These findings complement existing observations that countries with aging populations have relatively low growth and higher public debt. Yet our findings are especially important because oldage dependency ratios have been rising for several decades and are projected to increase further. Within the next 30 years, more than 20 countries across the world would exceed the old-age dependency ratio of 50 percent—an unprecedented level in global history—with some even reaching 70 percent. In other words, population aging is posing significant challenges to policymakers. How can we support aggregate demand with the weaker growth impact of fiscal stimulus in aging economies? The paper draws the following implications for policymakers to consider: • A larger fiscal stimulus may be required to support aggregate

•

demand during recessions. Given the lower output effects of fiscal stimulus, other economic policies (including structural reforms) would need to play a more important role in supporting domestic demand. Policy measures to enhance labor supply (for example, through stronger female labor force participation or labor market needs-based immigration) would help increase the output effects in aging societies. Secure sufficiently large fiscal space (room to raise spending or lower taxes more than previously planned, without endangering debt sustainability or access to capital markets) during booms, in order to prepare for a larger fiscal stimulus during recessions, without creating concerns for fiscal sustainability. (blogs.imf.org)

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Why Asia and Europe are responding to the same crisis differently BY HO EE KHOR, ROLF STRAUCH

n Europe and Asia alike, policymakers must begin considering how to translate emergency measures into more sustainable policies. Their approaches may not be the same, but their objectives – protecting lives and livelihoods, especially those of the most vulnerable – should be. COVID-19 has claimed more than 700,000 lives, infected over 19 million people, and decimated rich and poor economies alike. But, even as most of the world faces unprecedented recession, policy responses differ sharply. The contrast between Europe and Asia is a case in point. Both regions are undoubtedly facing serious economic hardship. The European Commission expects the eurozone economy – which grew by 1.3% in 2019 – to contract by 8.7% this year. In the ASEAN+3 – the ten members of the Association of Southeast Asian Nations (Brunei Darussalam, Cambodia, Indonesia, Lao People’s Democratic Republic, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam), plus China, Hong Kong, Japan, and South Korea – GDP growth is expected to plunge to 0% this year, from 4.8% in 2019. Policymakers in both regions have responded aggressively, with unprecedented monetary and fiscal stimulus, as well as other measures to support the economy. But different economic structures, institutional arrangements, and vulnerabilities mean that the size, content, and distribution of support have been very different. In the European Union, fiscal rules – particularly the stricture that a budget deficit cannot exceed 3% of GDP – were temporarily suspended, to give countries more space for expansionary fiscal policy. Of course, significant differences in countries’ fiscal and financial space remain, so the size of the stimulus varies widely by country – from about 50% of GDP in Italy to a few percentage points in other countries, like Ireland. In the ASEAN+3, the range is narrower, but not by much. Japan’s stimulus is the largest, at 40% of GDP, while the other economies come in at around 10% of GDP. All told, fiscal measures, together with indirect financial measures (such as debt moratoriums), amount to nearly 29% of GDP in the eurozone, and 13% of GDP in the ASEAN+3. Differences in the size of the crisis response can be explained partly by the extent to which guarantees have been used to support firms. In the eurozone, discretionary budgetary measures worth 5.3% of GDP are backed by liquidity facilities

totaling almost 21% of GDP. Those facilities consist of public guarantee schemes – which channel liquidity through the banking system into the economy. The ASEAN+3 economies have pursued discretionary fiscal measures on a similar scale – 5.1% of GDP, on average – but backed by liquidity-support schemes averaging just 5% of GDP (including temporary debt relief and moratoriums). The magnitude of tax and socialcontribution deferrals is comparable in the eurozone and the ASEAN+3. Both regions have also taken steps to support household income, though here, too, structural differences have translated into contrasting approaches. Eurozone economies have favored job-retention schemes, via short-time work compensation – partly a reflection of the region’s robust social security systems. In many ASEAN+3 economies – which despite their economic heterogeneity, tend to have larger informal economies, more flexible labor markets, and weaker social safety nets – direct income-support schemes have proved effective. Moreover, automatic stabilizers – such as taxation and the extension of unemployment coverage and social benefits – have played a much larger role in the eurozone, where they amount to about 5% of GDP. In most ASEAN+3 economies, such stabilizers are estimated to total 1.1% of GDP. Another notable difference is institutional: in Europe, unlike in the ASEAN+3, existing structures allowed for complementary policy initiatives at the regional level. Even before the EU launched its

unprecedented €750 billion ($886 billion) recovery fund, finance ministers had agreed to three programs worth a total of €540 billion. First, the European Commission’s Support to mitigate Unemployment Risks in an Emergency (SURE) can provide up to €100 billion of loans under favorable terms to member states. Second, the European Investment Bank is available to support businesses by mobilizing up to €200 billion. Finally, the European Stability Mechanism’s Pandemic Crisis Support credit line supports spending on health care and preventive measures during the COVID-19 crisis, up to €240 billion. Of course, the eurozone’s integrated structure also creates risks – particularly if the COVID-19 crisis fuels destabilizing divergence among member economies. Some eurozone-wide initiatives – including the recovery fund – aim to mitigate this risk. There are also notable differences in approach on the monetary-policy front. In emerging and developing economies, central banks have focused on cutting policy rates and injecting liquidity. Key measures among ASEAN+3 economies have included government guarantees on select bank-lending activities, temporary financing lines, and corporate-bond purchases. Moreover, regulatory forbearance encourages well-capitalized banking sectors to provide some relief to borrowers. By contrast, central banks in advanced economies had little space to lower interest rates, so they

have leaned heavily on quantitative easing. The European Central Bank expanded its €120 billion assetpurchase program and created a new temporary €750 billion Pandemic Emergency Purchase Program, which it subsequently increased by €600 billion. The COVID-19 pandemic has highlighted the way structural differences, institutional frameworks, and the extent to which governments and financial systems have built up buffers shape crisis responses. But shortterm emergency action is just the beginning. It is impossible to say how the COVID-19 crisis will unfold. New waves of infection may necessitate renewed lockdowns, impede or even reverse economic recovery, and intensify fiscal pressures. Additional stimulus measures may be needed. Even if the virus is brought under control relatively quickly, the road to recovery will be long. In Europe and Asia alike, policymakers must begin considering how to translate emergency measures into more sustainable policies. Their approaches may not be the same, but their objectives – safeguarding their economies’ long-term prospects – should be. Hoe Ee Khor is Chief Economist at the ASEAN+3 Macroeconomic Research Office.ROLF STRAUCH Rolf Strauch is Chief Economist at the European Stability Mechanism. (Copyright: Project-syndicate. Org)

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Common Platform has yielded substantial savings, says Comm. Minister BY EUGENE DAVIS

An estimated GH¢¢300m in tax revenue has been saved to date since the start of implementation of the Common Platform (CP) in the first quarter of 2017, Communications Minister Ursula Owusu-Ekuful has told parliament. KelniGVG, a private company, was contracted by the government three years ago to build and operate a Common Monitoring Platform (CMP) to monitor the traffic and revenues of mobile network operators. The award of the contract was controversial, as some industry watchers cast doubt on the usefulness of the task assigned to KelniGVG. Ms. Owusu-Ekuful told Parliament on Friday that the introduction of the CP has uncovered that, before the introduction of the policy, GH¢470m in taxes was lost from potential under-declaration of revenue by mobile network operators between 2015 and the first quarter of 2017. “There would have been a

potential loss of GH¢1.5bn through to the end of the CP contract had the CP not been implemented,” she said during an appearance before MPs to answer questions on the five-year deal. Background The Common Platform has four main components, comprising fraud management, traffic monitoring, revenue assurance, and mobile money monitoring. Its introduction has resulted in savings of US$1.1m monthly over the previous contracts, resulting in total savings of US$66m over the five-year contract period, the Minister said. She added that unlike the previous contracts, the CP offers real-time monitoring of 2.5bn transactions per day within the telecoms sector. The Communications Minister indicated that currently, there is a non-line and real-time monitoring platform direct from the same information sources of the telecoms companies into the CP, and the system independently monitors and verifies declarations

from the mobile network operators and gives National Communications Authority and Ghana Revenue Authority all-time full visibility of all transactions within the sector. The fraud management component has from inception to end of July 2020 made tax savings of over GH¢327.3m, it was revealed. Over the life of the contract, the CP

is expected to deliver tax savings of approximately GH¢799.6m. With the system’s advanced functionalities, the GRA is now able to verify the various revenue streams of the mobile network operators, plug revenue leakages, and more accurately predict revenue trends from the sector for planning and policy formulation.

Do more with FBNBank’s quick banking *894# FBNBank Ghana, as part of its commitment to empower all who embrace its brand with seamless access to everyday financial services has unveiled the quick banking *894# product. The product bestows the power to bank anywhere and at any time to customers. According to the bank, it is convenient, easy, simple and quick to use. The quick banking *894# product promises flexible options, exceptional convenience and allows customers to bank with any phone on the MTN, AirtelTigo and Vodafone mobile networks. Users of the product do not require internet to access the platform, only mobile network availability. Quick Banking *894# is delivered on the customers’ registered phone number linked to their FBNBank accounts. Mrs. Rachel Adeshina, Country Head, Technology and Services at FBNBank Ghana stated that quick banking *894# has made any mobile phone a mobile branch of the bank. She announced that FBNBank customers can register for this product when they dial *894#, select registration, enter their account number and a five-digit Personal Identification

Number (PIN). She added that users can open accounts, transfer money to FBNBank and other banks customers in Ghana, buy airtime for themselves and their loved ones, check account balance, request for mini statements, reset their PIN and more wherever and whenever they want these services. While assuring customers of maximum security when using quick banking *894# for transactions, Mrs. Adeshina emphasized that every number on the platform is already registered with the bank. According to Mrs. Adeshina, FBNBank Ghana’s introduction of quick banking *894# is in line with strategy to bring financial services closer than ever to the FirstBank of Nigeria Limited’s subsidiary in Ghana. The launch represents a key step in FBNBank’s digital banking strategy, which aims to leverage new and evolving technologies to facilitate access to everyday financial services for consumers and businesses alike. 894 also reflects the origins of our over 125-year-old bank, established in 1894 in Nigeria.

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Debt and Covid: the recovery must not come at expense of workers and public services

BY DANIEL BERTOSSA AND VIRGINIA PALOMBA

hile public service workers are giving it all to save lives, public spending is saving our entire global economic system from collapse: rescuing jobs, supporting salaries and bailing out many businesses on the brink. Although this essential spending is being made by our governments today, the debate over how to deal with the debt generated by the Covid crisis will be of vital importance to unions and workers in the decade ahead. We must do all we can to avoid the mistakes of the 2008 economic crisis: after governments took on billions in dodgy private sector debt, major corporations gouged on tax cuts, bail-outs and buy backs while workers faced frozen wages, foreclosures and austerity guttered our public sector. We must avoid the catastrophe that the international finance institutions forced on Greece: destroying peoples lives as well as all hope of economic recovery with a blind devotion to discredited austerity. The current crisis exposes the urgent need to rebuild a strong and resilient public sector. Our public services, which have born a huge burden through spending

cuts and the pandemic, must be bolstered through expansive increases in funding and support. Meanwhile, with the ILO estimating up to 195 million Covidrelated job losses, we must extend social security programs to ensure no one is left behind, and limit the justified anger and alienation which has helped fuel the far-right. Paying for these programs will require more than just debt– to raise public revenues, the major companies who cashed in big since 2008 must be made to pay their fair share through a reformed global tax system. Making multinationals and the mega-rich contribute to the cost of crisis and recovery should be a key goal for our movement. The tech companies who made billions from dodging their taxes and skimping on the rights of their workers and are now cashing in big from the lock down must be top of the list. Wealth taxes to ensure those who have profited from the global economy in the last 20 years pay their fair share are now urgent. After decades of deregulation, corruption, privatisation and taxcuts for mega rich corporations, many countries- especially those in the developing world - were already struggling with debt before the Corona virus outbreak. According to the IMF, 34 countries were already at risk of debt distress or in default in 2019.

The international community must intervene to financially support these countries who cannot currently increase their expenditure without incurring even more unsustainable debt. Some steps in this direction have already been taken: • the IMF and the World Bank are providing loans to more than 100 countries to tackle the crisis. • the IMF has approved debt service cancellation for 25 countries for six months • the G20 has announced a suspension of debt principal and interest payments for the poorest developing countries until the end of the year However, these measures are neither sustainable nor effective solutions to the deeper questions of developing world debt. Instead, we must support calls for a debt jubilee: a cancellation of odious and unsustainable debt and the cancellation of all external debt payments due in 2020 and 2021. This must cover all external creditors, both official and private, and all low-income countries. In addition, we must support emergency financing for developing countries in the form of grants rather than loans. In the long term, unions should support a systemic change to global debt governance. We must stop putting the needs of creditors ahead of those of people. All

analysis of debt repayment must place the realisation of human rights as its key priority. We should support calls for debt workout mechanism which should guarantee transparency, independence from debtors and creditors as well as inclusive participation of all stakeholders instead of the ad hoc and opaque procedures which currently exist. We can not return to the broken and unsustainable business as usual which governed debt and tax before this latest crisis. Workers and users of public services must no longer be made to bear the brunt of debt restructuring. Now more than ever, unions must be prepared to fight for a fairer global debt system and ensure the wealthy and corporations pay their fair share. Daniel Bertossa is the Assistant General Secretary and Virginia Palomba, is the Policy and Project Assistant, Public Services International This article is made available under Creative Commons for any union or Civil Society Organization (CSOs) which would like to share information on Debt issues with their members and stakeholders. We encourage unions and CSOs to post it on their websites, add to newsletters or publish in relevant journals. For further information, contact leo.hyde@world-psi.org

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Africa Business

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WHO ramps up COVID-19 support to hotspot countries in Africa The first members of a surge team of health experts from the World Health Organization (WHO) have arrived in Johannesburg, South Africa to bolster the country’s response to COVID-19. As the continent nears one million cases, WHO is expanding support to countries experiencing a significant uptick in cases. South Africa is among the five countries in the world most affected by COVID-19. After their arrival, the WHO surge team went into quarantine in line with the national regulations. A second group of experts will deploy next week. Altogether more than 40 public health experts are expected to provide surge support, working with national and provincial counterparts on key areas of the response. “As the impact of the virus intensifies in a number of hotspots in Africa, so too are WHO’s efforts,” said Dr Matshidiso Moeti, WHO Regional Director for Africa. “At the request of the South African

government, our experts will be embedded with the national response teams, working closely with local public health officials to address some of the urgent challenges the country is currently facing.” Across the continent, the COVID-19 pandemic has taken varied trends: 10 countries accounted for 89% of new cases over the past two weeks. New cases have increased by more than 20% in 16 countries in the African region in the past two weeks compared with the previous fortnight. WHO is increasing support to 11 countries which have requested assistance as they experience a surge in COVID-19 cases and deaths. The Organization is mobilizing more technical experts on the ground, scaling up trainings to build up local capacity, particularly at the provincial and district level. With community transmission occurring in more than half of countries in Africa, WHO is beefing

up community engagement and health education and providing direct material support to strengthen testing capacity. “Lack of testing is leading to some under-reporting of COVID-19 cases and preventing us from understanding the full picture of the COVID-19 pandemic in Africa,” said Dr Moeti. “We need to turn this around so countries can calibrate their response, ensuring it is most effective, and as cases move into the hinterlands, testing must be decentralized from the capital cities.” To help meet demand for essential medical equipment across Africa, WHO and other United Nations agencies have formed a global procurement consortium which leverages their networks, expertise and product knowledge to support countries that have limited access to markets. The WHO-led consortium has secured critical volumes of testing kits and other key diagnostic supplies from major manufacturers. So far, the consortium has

shipped 1.8 million testing kits to 47 countries in Africa over the past month. Another 1.1 million testing kits are expected to be dispatched in the coming weeks. Testing for COVID-19 in Africa remains low by global benchmarks, but capacity has expanded significantly since the outbreak began. In sub-Saharan Africa, over 6.4 million polymerase chain reaction tests have now been performed. Eleven countries are now performing more than 100 tests per 10 000 population, compared with just six a month ago. July saw a 40% increase in the total number of tests performed compared with the previous month. Dr. Moeti spoke during a virtual press conference today organized by APO Group. She was joined by Hon Dr Idi Illiassou Mainassara, Minister of Public Health, Niger; and Hon Dr. Daniel Ngamije, Minister of Health, Rwanda.

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Aviation

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Lufthansa Group’s ‘ReNew’ Programme to shed 22,000 full-time jobs The Lufthansa Group expects demand for air travel to return to pre-crisis levels in 2024 at the earliest and has, therefore, decided on a comprehensive restructuring programme entitled “ReNew”, which also includes the restructuring program already underway at the airlines and service companies. The aim of the programme, according to the Group, is to maintain the global competitiveness and future viability of the Lufthansa Group. The program includes the reduction of 22,000 full-time jobs in the Lufthansa Group. The Group’s fleet is also to be permanently reduced by at least 100 aircraft. Nevertheless, the capacity offered in 2024 is to correspond to that of 2019. To this end, productivity is supposed to be increased by 15 percent by 2023, among other things by reducing the number of the flight operations (AOCs) to a maximum of ten in future. The size of the Executive and Management Boards of the Group companies will be reduced and the number of executives in the Group is supposed to be lowered by 20 percent. In the administration of Deutsche Lufthansa AG, 1,000 jobs will be

cut. The sum of these measures should make it possible to refinance the funds of the stabilization package as quickly as possible. The financial planning of Lufthansa Group stipulates that positive cash flows will be generated again in the course of 2021. Lufthansa Group currently (as of 30 June 2020) has 129,400 employees, about 8,300 fewer than at the same time last year. The Group’s objective was to avoid redundancies as far as possible. Against the background of the market developments in global air traffic and based on the course of the negotiations on necessary agreements with the collective bargaining partners, this goal is no longer realistically within reach for Germany either. Carsten Spohr, Chairman of the Executive Board and CEO of Deutsche Lufthansa AG, said: “We are experiencing a caesura in global air traffic. We do not expect demand to return to pre-crisis levels before 2024. Especially for long-haul routes there will be no quick recovery. We were able to counteract the effects of the coronavirus pandemic in the first half of the year with strict cost management as well as with the revenues from Lufthansa Technik and Lufthansa Cargo. And we are benefitting from the

first signs of recovery on tourist routes, especially with our leisure travel offers of the Eurowings and Edelweiss brands. Nevertheless, we will not be spared a far-reaching restructuring of our business. We are convinced that the entire

aviation industry must adapt to a new normal. The pandemic offers our industry a unique opportunity to recalibrate: to question the status quo and, instead of striving for “growth at any price”, to create value in a sustainable and responsible way.”

IATA: Albakri to assume office as Senior Vice President CFDS March 2021 Mr. Muhammad Albakri, IATA’s Regional Vice President for Africa and the Middle East is to assume office as the Senior Vice President for Customer, Financial and Digital Services (CFDS), effective March 2021, the International Air Transport Association (IATA) has announced. “Over the past 16 years Aleks has driven some of the most critical elements of IATA’s operations, while leading major transformational projects for the airline industry. This includes IATA’s financial settlement products, which securely processed US$457 billion of industry money in 2019, during a time of tremendous innovation in financial technology. And he delivered critical flagship programmes that continue to change the industry—introducing cost-effective self-service options under the banner of Simplifying the Business, enabling airline retailing with New Distribution Capability (NDC), and streamlining decades of legacy processes with ONE Order. Aleks leaves behind

a great team with a clear focus on customer service that will continue to drive critical changes under the capable leadership of Muhammad,” said Alexandre de Juniac, IATA’s director general and CEO. Albakri joined IATA in January 2017 after more than a decade in the leadership team of Saudi Arabian Airlines where he successfully fulfilled the roles of chief financial officer, chief information officer and senior vice president for transformation. At IATA, Albakri has been an agent of change, transforming the Africa and Middle East regional team to better serve member needs and pioneering the work of IATA’s Digital Transformation Advisory Council. “Muhammad is well prepared to guide the development of IATA’s commercial offerings, settlement services and digital leadership. In normal times, these are critical functions—even more so in the middle of an industry crisis,” said de Juniac.

MONDAY AUGUST 3, 2020

MONDAY AUGUST 10, 2020

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Vodafone Ghana partners NBSSI to promote SMEs with technology As part of measures to reach out to larger consumers with products and services in the wake of COVID-19, Vodafone Ghana has partnered the National Board for Small Scale Industries (NBSSI) to leverage technology for their sustainability. Vodafone would provide a digital platform to promote products and services of Micro Small and Medium Enterprises (MSMEs) and Small and Medium Scale Enterprises (SMEs) after they had developed business ideas. Mrs. Patricia Obo-Nai, the Chief Executive Officer (CEO) of Vodafone Ghana, at a webinar series, said the telecom company’s support dubbed: “Vodafone Business Runway” said being the partner mobile money operator for the disbursement of the GH¢600 million to MSMEs allocated by the Government of Ghana after the introduction of the Coronavirus Alleviation Programme (CAP), to the NBSSI, it decided to contribute to the survival of the enterprises during and after the pandemic. Many organisations, she said, were finding effective ways to digitally transform their competitiveness by reinventing back-office processes, speeding up the supply chain and other Human Resource services using technology. All these were to win in the current dispensation and lead their respective industries in order not to

be left behind, she said. “The Vodafone Business Runway is crucial now more than ever, for us to deliberate and fashion out innovative solutions and ideas that will help SMEs survive this pandemic and beyond. What should be evident at the end of this webinar is for all of us to come together as a united force for the good of SMEs and to contribute to Ghana’s socioeconomic growth,” Mrs Obo-Nai said. She encouraged SMEs to embrace and adopt modern trends to become a digitalised ‘Ready Business’ with more options to substantially increase business growth and productivity. “The use of technology is no longer an option for businesses. It is no longer about a brand but how you deliver to the expectation of your clients. Life has changed and it is important that businesses begin to rethink how to promote what they have with technology,” she said. Mrs Kosi Yankey-Ayeh, the Executive Director, NBSSI, said aside the financial support for MSMEs, the Board with assistance from Vodafone was also providing technical support for the beneficiaries of CAP. For the first time, 800,000 operators of MSMEs applied for a Tax Identification Number without a push as they realised the privileges

that come with it, she said. She advised beneficiaries of the CAP to work harder and try to enter into public private partnerships to build stronger and resilient businesses. Mr. Dominic Kwame Adu, the CEO of First National Bank, said using digital platforms to operate a business saves time and reduces the need to meet up with partners especially during the pandemic. Technology, he said, allowed businesses to evaluate the operations of their stakeholders faster than in the manual sense. Mr Adu said the success of every company depended on the

success of their customers and that could be achieved by employing digital transmission to promote transparency. Madam Francesca B. Opoku, the CEO of Solutions Oasis Ltd, explaining the role of technology in the smooth operation of businesses, said her company to thrive in this COVID-19 pandemic had moved its website and other online platforms from an informative platform to an e-commerce one. She said they also engaged clients and other stakeholders via digital meeting platforms such as zoom, which was less expensive and convenient. GNA

Issues affecting youth progress must be tackled - NYA Mr. Yao Semorde, the Volta Regional Director of the National Youth Authority (NYA), has said issues that affect the progress of the youth must be tackled to ensure development. He said teenage pregnancy and early marriage were hindrances to the development of young people, making it impossible for them to realise their full potentials. Mr Semorde said this at a seminar for out-of-school youth leaders on early marriage and teenage pregnancy at Ve-Golokuati in the Afadzato South District. He said there was the need to minimise or remove the negative effects of the hindrances. “Transition from child life to youth life requires a lot of attention because that is the age at which you start gaining some freedom and if not managed and directed well at a youthful stage may lead to a lot of negativities. He said that was the reason young people needed to be guided through the transition period to ensure they did not face any challenges when they become adults. “Lots of young girls get their dreams shattered due to teenage

pregnancy and early marriage.” The Director called on the youth to serve as ambassadors and educate their colleagues in their various communities. Mr James Etornam Flolu, the Afadzato South District Chief Executive (DCE), said it was time issues of teenage pregnancy received the needed attention. He said tackling the issues should provide post-teenage pregnancy factors to enable victims to pursue their dreams through education and learning of trade. Mr Flolu said a supporting system should be created to enable teenage mothers and fathers not to give up on their dreams. He said the notion that females were meant to only reproduce must be discouraged. The DCE noted that the government was committed to the development and growth of the Ghanaian youth in shaping their future to enable them to become responsible nation builders. “The free Senior High School, for instance, is a direct government policy for the youth to enable them to attain Higher education”

The seminar, which was sponsored by the United Nations Population Fund, was attended by 50 youth leaders from various communities in the District. Miss Faustina Dofui Desewu, Afadzato South District Public Health Nurse, said the District had recorded a total of 73 teenage pregnancies from January to May, this year. She said the District would create “Adolescent Corners” in all health centres in the District to enable teenagers to get educated and also share their problems with health workers.

Miss Desewu said teenagers must access their state of well-being and adequate preparation before they engaged in pre-marital activities. She called on parents to give their children the needed parental guidance, provide their needs and avoid ‘pushing’ their wards to emulate the bad behaviour of their peers. Ms Barbara Kornu, a participant, said the seminar was of great help in minimising teenage pregnancies and early marriages. She said she would educate her peers and share what she learnt with them. GNA

MONDAY AUGUST 3, 2020

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MONDAY AUGUST 10, 2020

COVID-19 pandemic: Breast Feeding should continue unabated BY LYDIA KUKUA ASAMOAH

he outbreak of the novel Coronavirus pandemic has brought in its wake, new ways of doing things and adjustments in the way people live and interact everywhere in the world. From China in Asia, through New York in America, through Italy in Europe, to Ghana in Africa, citizens, are being encouraged to observe some hygienic protocols including regular hand washing with soap under running water, regular sanitizing of hands, wearing of face masks when going out of the house as well as practicing physical distancing at workplaces, in churches, funeral gatherings and in the general society. Thankfully,however, breastfeeding, an essential part of nurturing and caring for new born babies and young infants has not been affected in anyway, but rather, remains the same, whether a mother is infected with the Coronavirus or not. Research has indicated that mothers infected with the COVID-19 cannot transmit the virus via breast milk. This is good news because the COVID-19 virus has not been detected in breast milk, the new research has explained. Breastfeeding of one’s new-born baby or young infant, is one of such life’s event that could not be underestimated no matter what. That is why mothers with or without COVID-19 are being encouraged to continue to breastfeed their newborns, just as in the case of mothers living with HIV. Breastfeeding protects against morbidity and mortality in the postneonatal period and throughout infancy and childhood. Early initiation of breastfeeding, has been known to be important for both the mother and the child. In fact, the World Health Organization (WHO) has emphasized that the risk of COVID-19 infection from breastfeeding is negligible and has never been documented. Calling for greater support for breastfeeding during the 2020 World Breastfeeding Week (August 1 to 7), the WHO, warned that not using mother’s milk is linked to 820,000 child deaths a year, at a cost to the global economy of $300 billion. The WHO has kept on with its call that breastfeeding should “absolutely continue” even if the Coronavirus continue. Dr. Laurence Grummer-Strawn, Head of WHO’s Food and Nutrition Action in Health Systems unit, said: “We have never documented, anywhere around the world, any (COVID-19) transmission through breastmilk.” Having tested the breastmilk of “many” mothers around the world in a variety of studies, the WHO

official explained that although a few samples had contained the virus, “when they followed up to see whether the virus was actually viable and could be infective, they could not find any actual infective virus”. In reiterating the WHO’s longstanding support for using mother’s milk over substitutes, Dr. Grummer-Strawn also expressed regret that the pandemic had weakened essential breastfeeding support usually provided to families with newborns. Numerous good things come from breastfeeding – for the child and their mother in developing and industrialized countries, WHO had maintained. “Breastfeeding provides benefits during the time of breastfeeding, and those that are most recognised are protection against diarrhoea, which is one of the top causes of mortality in low-income countries, protection against respiratory infections, against obesity – childhood obesity later on – as children get older, protection against leukaemia,” said Dr. Grummer-Strawn. For mothers, breastfeeding protects against breast cancer and may protect against ovarian cancer and type two diabetes. And so, it is so beneficial for mothers to continue to breastfeed their babies whether or not COVID-19 continues to scare us. Breastfeeding is particularly effective against infectious diseases because it strengthens the immune system by directly transferring antibodies from the mother. That is why, it is proper that pregnant women and all newborn mothers understand the importance of breastfeeding their babies in spite of the existence of COVID-19 pandemic, which still rages on. As the world continue to find a sure medication or vaccine for the virus, life surely must go on amidst the observance of the necessary hygiene protocols that have proven to protect people from getting infected with the virus. Ms Awurabena Quayeba Dadzie, Technical Programmes Manager, Health, Nutrition & HIV/AIDS, World Vision Ghana, has explained to the Ghana News Agency that early suckling stimulates the release of prolactin that helps in the production of milk, and oxytocin, which is responsible for the ejection of milk. It also stimulates contraction of the uterus after childbirth and reduces postpartum blood loss in mothers. She explained further that the first milk known as colostrum, produced in the first few days after delivery, was highly nutritious and contains antibodies that provide natural immunity to the infant. “It is recommended that children be fed colostrum immediately after birth (within one hour) and that they continue to be exclusively breastfed even if the regular breast milk has not

yet started to flow,” Ms Dadzie said. A 2014 Ghana Demographic Health Survey reports has indicated that almost all children in Ghana (98 percent) were breastfed at some point in their life, while 52 percent of children younger than six months were exclusively breastfed. The report indicates that the median duration of exclusive breastfeeding is about four months, which is good news. However, the country risk losing some of these gains chalked over the years considering the spread and increase in COVID-19 cases among the populace. According to Ms Dadzie, some mothers, are feared to deny breastfeeding their infants if they are confirmed as having been infected with COVID-19, or people who are presumptive for COVID-19. Allaying the fears of such mother, Ms Dadzie said, as with all confirmed or suspected COVID-19 cases, mothers with any symptoms who were breastfeeding or practicing skin-to-skin contact are advised to take precautions. All mothers in affected and at-risk areas who have symptoms of fever, cough or difficulty breathing, are also advised to seek medical care early. She advised that whether and how a mother, with confirmed or suspected COVID-19, should start or continue providing breastmilk should be determined by the mother in consultation with her family and healthcare providers in line with the Ministry of Health or the Ghana Health Service guidance. The consultation, should consider the latest evidence on COVID-19 transmission and the risks associated with the use of a breastmilk substitute within the context. A confirmed and suspected COVID-19 mother should take all possible precautions to avoid spreading the virus to her child, including washing her hands before and after touching the infant, and wearing a protective face mask, if possible, while feeding at the breast -as well as and regularly cleaning or disinfecting surfaces. If the mother is expressing breast milk with a manual or electric breast pump, she is advised to wash her hands before touching any pump or bottle parts and ensure proper pump cleaning after each use. The expressed breastmilk should be fed to the child using a clean cup or a spoon, preferably by a person who has no signs or symptoms of illness. Mothers should also learn to

practice respiratory hygiene, including during feeding, as well as use a medical mask when near their child if they experience respiratory symptoms such as shortness of breath. Ms Dadzie advised that if a mother is severely ill with COVID-19 or suffer from other complications that may prevent her from caring for her infant or continuing direct breastfeeding, she should express milk to safely provide breastmilk to her infant. Such a mother who can explore the possibility of relactation, (restarting breastfeeding after a gap), or wet nursing (another woman breastfeeding or caring for her child), or using donor human milk. Again, operators at the mother and child facilities should avoid promoting breastmilk substitutes, feeding bottles, teats, pacifiers or dummies in any part of the facilities. They should rather enable mothers and infants to remain together and practice skin-to-skin contact, and rooming-in throughout the day and night, especially straight after birth, during establishment of breastfeeding, whether or not the mother or child has confirmed COVID-19 infection or not. Moreover, mothers with infants or young children with suspected or confirmed COVID-19 infections, are to seek breastfeeding counselling, basic psychosocial support, or practical feeding support from appropriately trained health care professionals and also community-based lay and peer breastfeeding counsellors. All new mothers, should endeavour to initiate breastfeeding within one hour of the birth, as well as continue exclusive breastfeeding for six months, then introduce adequate and safe complementary foods at age six months, while they continue breastfeeding up to two years of age or beyond. Above all the benefits of breastfeeding, it had been estimated that over 820,000 children’s lives could be saved every year, if all children 0-23 months were optimally breastfed. Adherence to infection prevention and control measures is essential to prevent contact transmission between COVID-19 suspected or confirmed mothers and their newborns and young infants. Governments should, therefore, protect and promote women’s access to skilled breastfeeding counselling.

MONDAY JULY 20, 2020

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