Business24 Newspaper 9th August, 2021

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MONDAY AUGUST 9, 2021

GITFiC calls for solutions to trade challenges under AfCFTA

How the pandemic widened global current account balances

See page 5

See page 9

BUSINESS24.COM.GH

NO. B24 / 232 | NEWS FOR BUSINESS LEADERS

Used-car prices surge

MONDAY MONDAYAUGUST MAY 3, 2021 9, 2021

By Mohammed Thaani

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sed-car prices in Ghana have surged this year, driven by high import duties, currency depreciation and a global microchip shortage, which has restricted new-car supply and increased demand for secondhand autos around the world.

This has caused prices of pre-owned cars to jump in Europe and the United States— two of the three main vehicle-importing markets for Ghanaian dealerships—as fewer people trade their usedCont’d on page 2

Accra–Tema train service returns this month

By Eugene Davis ugendavis@gmail.com

Prices of secondhand cars have gone up by an average of 22 percent since the start of the year

AngloGold cuts adjusted net debt by 41%

By Benson Afful

affulbenson@gmail.com

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ngloGold Ashanti says its adjusted net debt declined by 41 percent year-on-year to US$850m as at June, from US$1.43bn at the end of June 2020.

The company has also declared a dividend of 87 ZAR cents per share (approximately 6 US cents per share) for the six months ended June 30, 2021.

Cont’d on page 3

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he Minister of Railways Development, John Peter Amevu, has told Parliament that the Accra–Tema railway line is expected to be reopened for passenger services by the end of August.

According to him, the Hydrological Services Department is currently constructing a concrete drain across the railway track to help address the perennial flooding at Avenor, near the Kwame Nkrumah Interchange.

Cont’d on page 3

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Cont’d on page 2

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Editorial / News

MONDAY AUGUST 9, 2021

Editorial

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Why UG’s entrepreneurship initiative is highly commendable

he University of Ghana's Innovation and Entrepreneurship Programme (UGIEP) to build the competences of students and young entrepreneurs to add value to products and services is one good initiative that deserves commendation.

The UGIEP is a nonacademic programme under the auspices of the ViceChancellor's Office, which seeks to foster entrepreneurship and innovation culture at the University.

Its objective would be achieved through five pillars, namely; the UG Start-up Challenge, the UG Incubator, the UG Venture Accelerator, the UG Venture Fund and the UG

Alumni Angel Investor Network.

It is a $100,000 Start-up programme that would provide funding and coaching to students and young entrepreneurs, being implemented in partnership with the Global Entrepreneurship Network.

Vice President, Dr. Mahamudu Bawumia, who launched the initiative reiterated said it hoards economic opportunities for all, irrespective of one's background.

"These objectives are in line with our government’s strategic focus for the economy and human capital development within this COVID-19 era," he added.

An estimated 250,000 young people enter the job market

every year, putting pressure on the limited employment opportunities.

The Vice President said government’s strategic anchors of human capital development, entrepreneurship, skills development, and education would also provide a platform for similar programmes to be scaled up, leveraging on the digitalisation agenda.

Entrepreneurship is the way to go if we are to create the right opportunities for wealth and job creation, and instigating the entrepreneurial spirit of student is the best way of producing jobmakers instead of job chasers.

Used-car prices surge

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Continued from cover

total vehicle imports.

cars. Prices have increased 32.7 percent year-to-date in the US. “The situation over there has made used cars expensive and difficult to even get; we can no longer buy,” former General Secretary of the Automobile Dealers Union Clifford Ansu told Business24.

Prices of secondhand cars have gone up by an average of 22 percent since the start of the year, according to aggregate figures collated by Business24.

In December 2020, an imported used Toyota Yaris 2007 model was selling at GH₵35,000, but that has now jumped to GH₵42,000. The Toyota Corolla LE model 2008 has also seen a 17 percent increase to sell at GH₵43,000.

The fuel-efficient Korean model cars—preferred for ride-hailing services—have seen prices going up by an average of 23 percent.

“This may affect the growth of the ride-hailing service because they prefer these cars due to the low consumption. But now most people turn away when we quote prices,” Mr Ansu said.

Due to low disposable income and the expensive cost of new vehicles, used vehicles dominate Ghana’s automotive retail sector, commanding about 70 percent of

Global shortage of microchips After supply was disrupted due to pandemic-related shutdowns, manufacturers of semiconductor chips—key parts required for modern vehicles to function— are now scrambling to meet the renewed demand from automakers.

This has slowed production of new cars and caused demand to exceed supply, shifting demand to used cars. The shortage of microchips is expected to linger till the end of the year, when manufacturers may have ramped up production.

Local factors driving prices In the topsy-turvy months since the coronavirus emerged, prices of secondhand cars have been steadily rising, mainly driven by “high import duty and currency depreciation,” according to some car dealers who spoke to Business24.

“We pay more for the cars, not because the original prices shot up but because the cedi depreciates a lot of times,” Clifford Ansu said.

The outbreak of COVID-19 also caused disruptions in the global supply chain, causing delays in the

shipment of auto parts to replace components of salvage vehicles imported into the country.

Ban on overage and salvage cars As part of efforts to make Ghana the automotive hub for West Africa’s 380m population, government passed a law last year banning the importation of vehicles aged over 10 years and salvage cars.

However, in the run-up to the elections, the implementation of the ban was suspended by the government in a move seen by many as politically-motivated.

Meanwhile, the country has, on the back of its new automotive policy, attracted global automakers including Volkswagen (VW), Nissan, Toyota and Suzuki to set up local assembly plants, giving hope to the automotive hub vision as well as reducing the cost of new cars.

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News

MONDAY AUGUST 9, 2021

AngloGold cuts adjusted net debt by 41% Continued from cover AngloGold in a statement said the company delivered first-half headline earnings of US$363m amid a challenging period, with performance affected by the ongoing COVID-19 pandemic, increased costs, lower realised grades across certain operations and the voluntary suspension of underground mining activities at the Obuasi Mine following a fatal accident on May 18, 2021.

“Headline earnings of $363m, or 87 US cents per share, in the first six months of 2021 compared to $404m, or 97 US cents per share, in the first half of 2020,” the company said.

It stated that production for the first six months of 2021 was 1.2Moz at a total cash cost of US$1,003/oz, compared to 1.323Moz at US$770/ oz from continuing operations for the first six months of 2020.

“All-in sustaining costs (AISC) were $1,333/oz for the first six months of 2021, compared to $1,002/oz from continuing operations for the corresponding

period last year, mainly reflecting higher cash costs, higher sustaining capital expenditure in line with the tailings compliance programme and the planned reinvestment objectives in the portfolio, COVID-19 impacts, stockpile movements and lower gold sold. Production for the half year was impacted by an estimated

42,000oz due to COVID-19,” the company’s statement added.

“AngloGold Ashanti remains focused on its strategy to create long-term value whilst maintaining a strong balance sheet and mitigating any financial or operating risks to the business,” interim Chief Executive Officer Christine Ramon said.

“Our reinvestment projects remain on track to improve operating flexibility and access to higher grades. We are also pursuing operating and capital efficiencies over the remainder of the year.”

The company further stated that its strategy of improving operating flexibility through investment in Ore Reserve development and Ore Reserve expansion at sites with high geological potential remains a key priority and is reflected by the 33 percent year-on-year increase in total capital expenditure to US$461m (including equity accounted joint ventures) in the first half of 2021, compared to US$346m from continuing operations in the first half of 2020.

This year and next remain transitional ones for the company, with the higher volumes of waste stripping and underground development accompanied by lower grades and the movements of stockpiles, it said.

Accra–Tema train service returns this month Continued from cover His comments were in response to a question by Frank Annor Dompreh, MP for Nsawam Adoagyiri, on why trains were not running on the Accra-toTema and Accra-to-Nsawam railway lines after their rehabilitation.

In his response, he explained: “The top slab on the concrete drain has been completed and [the] curing period has started.

After the completion of the construction, the approaches of the culvert will be filled and the tracks will be laid back to allow for test runs and certification by the Ghana Railway Development Authority before the commencement of shuttle services.”

Furthermore, he indicated that similar culvert construction works are being undertaken across the rail line at Taifa.

“The construction of the culvert is at its early stages and will be constructed 14 metres away from the existing trench in order not for any water from the existing drain to flood and cause delays in the construction works.”

He added: “From mobilisation to the completion of the culvert, a period of between 13–14 weeks would be needed. Tentatively, test runs may commence on the line at the end of October, pending subsequent

certification by Ghana Railway Development Authority for the commencement of passenger service between Accra and Nsawam.”

Following the outbreak of the COVID-19 pandemic in Ghana in

March 2020, all passenger rail services across the country were suspended due to the non-adherence to the prescribed safety protocols by passengers.

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MONDAY AUGUST 9, 2021

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News

MONDAY AUGUST 9, 2021

Ghana and Cote d’Ivoire sign deal to establish cocoa initiative secretariat in Accra

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hana and Ivory Coast have signed the Headquarters Agreement for the establishment of the Cote D’Ivoire-Ghana Cocoa Initiative Secretariat in Accra.

The agreement is in line with the fundamental elements of the Charter of the Initiative, which amongst other things stipulates that Ghana provides a permanent place or office for the smooth running of the organisation.

“The grain of mustard seed that was planted in March 2018 by the two countries has grown and is now assuming shape and prominence at the international scene,” Mr Joseph Boahen Aidoo, Chief Executive Officer Ghana Cocoa Board, said at the signing ceremony.

He said the establishment of the secretariat would provide the much-needed coordinated effort to ensure compliance with the dictates of the Living Income Differential, a monumental achievement of the initiative, which seeks to improve the earnings of cocoa farmers in the two countries.

The agreement would also

support sustainable cocoa production, research, and marketing of cocoa from both countries.

Minister for Agriculture, Dr Akoto Owusu Afriyie, said the agreement climaxed years of deepened bilateral cooperation to harmonise the interests of the two cocoa-producing nations.

“We shall achieve the ultimate vision of securing a decent income for cocoa farmers in our

countries through a commitment to implement pragmatic policies under this agreement,” he stated.

Speaking at the event, Minister for Foreign Affairs, Shirley Ayorkor Botchwey stated that the agreement will grant Ghana the needed accord for the operation of the organization when it comes to some diplomatic privileges for the secretariat and its staff.

“By this Charter, the Republic of Ghana guarantees absolute

diplomatic privileges, support and protection to the operations of the secretariat of the Cote d’Ivoire-Ghana Cocoa initiative,” she revealed.

Both countries have settled on the Director of Corporate Affairs for Europe and Africa at Mars Inc, Alex Arnaud Assanavo as the first-ever Executive Secretary of the Cote d’Ivoire-Ghana Cocoa Initiative.

GITFiC calls for solutions to trade challenges under AfCFTA

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hana International Trade and Finance Conference (GITFiC) has called on government, the private sector and stakeholders to work together to fast-track regional integration.

The participants of the conference said in their recommendations after the GITFiC’s 5th Annual Trade and Finance Conference held in Accra that the regional integration could be done by addressing trade challenges under the African Continental Free Trade Agreement (AfCFTA) They also suggested that institutional capacities be built among stakeholders and businesses in the formal and informal sectors in the implementation of the Pan African Payment and Settlement System (PAPSS).

The conference, which was held under the theme: “Facilitating Trade & Trade-Finance in AfCFTA; The Role of the Financial Services Sector” had experts and stakeholders from the financial and monetary

institutions in Ghana and on the continent, attending both physically and virtually.

The conference was graced by Alhaji Dr Mahamadu Bawumia, Vice President of Ghana, who opened up the event with a presentation on behalf of government.

The conference urged African contracting parties to respect protocols under the AfCFTA to reduce the incidence of smuggling, unfair trade practices such as dumping, transshipment

of third-party products into the African liberalized market.

“African economies are encouraged to build an integrated and organized financial mechanism, and allow an independent monetary system, to ensure the smooth and effective implementation of PAPSS and not necessarily a full-blown-private entity like AfreximBank which has a substantial amount of Private Interest,” it said.

It said implementers of PAPSS should show a clear roadmap for

trust, sovereignty, commitment, control and ownership of data, capacity and capability and PAPSS should also allow for signatory African countries to have their national switches connected to ensure smooth operationalisation.

“African economies are being encouraged to roll out policies which would lead to financial inclusion for the unbanked and the petty trading community.

Systematically address infrastructural gaps and improve the general ease of doing business across the sub-region,” the conference suggested.

Mr. Selasi Koffi Ackom, Chief Executive Officer (CEO) of GITFIC said it is necessary to deepen discussions among stakeholders to enable African economies maximise benefits under the AfCFTA. He also stressed on the negative impact of Africa’s fragmentedfronts as a possible means of derailing the time-sensitivelines of the proposed AfCFTA achievements.

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MONDAY AUGUST 9, 2021

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News

MONDAY AUGUST 9, 2021

AngloGold continues redevelopment investment pending mining restart

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ngloGold Ashanti estimates mining could restart at its Obuasi Mine by year-end, with a ramp-up to previously planned production levels through the course of 2022.

“We are focused on understanding and dealing with the current issues and resuming the ramp-up as soon as possible,” said Eric Asubonteng, Managing Director of Obuasi Gold Mine.

“Obuasi remains an excellent asset and an important one for us, as a company, for the community and for Ghana as a whole.”

AngloGold Ashanti said it was continuing underground development and important work related to the Obuasi Redevelopment Project, while a detailed review of the mine plan is conducted in the coming months.

The company said work has resumed in the ODD Decline and in several development headings.

Diamond drilling, service functions and underground construction, among other

activities, have also resumed.

“Underground stopping activities, halted after a fallof-ground incident on May 18, remain suspended pending the conclusion of the review and implementation of recommendations from an investigation into the incident,” it said.

AngloGold Ashanti remains

firmly committed to the Obuasi Redevelopment Project, which will revive one of the world’s largest gold ore bodies and create a modern, mechanized mining operation over more than 20 years.

Employees and contractors will be engaged in the ongoing project development in the coming months, while AngloGold Ashanti

will use the production stoppage to continue to train and develop skills of the workforce ahead of the restart.

As the investigation progresses and the assessment of working places advances, the Company will provide an update on the resumption of additional mining fronts.

“We remain committed as ever to responsibly operating this important ore body for the benefit of all stakeholders,” Asubonteng said.

“Obuasi has a long future ahead of it. It is important that we proceed deliberately and carefully as we complete our programme of checks and balances in each mining section.”

Before the suspension of underground mining activities at Obuasi, the mine produced 85,000oz in the first half of 2021 at a total cash cost of $999/oz and an All-in Sustaining Cost of $1,316/ oz.

Bawumia unveils UG's innovation and entrepreneurship programme an optimistic, self-confident and government are working to leave

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ice President Dr Mahamudu Bawumia on Friday launched the University of Ghana's Innovation and Entrepreneurship Programme (UGIEP) to build the competences of students and young entrepreneurs to add value to products and services.

The UGIEP is a non-academic programme under the auspices of the Vice-Chancellor's Office, which seeks to foster entrepreneurship and innovation culture at the University.

Its objective would be achieved through five pillars, namely; the UG Start-up Challenge, the UG Incubator, the UG Venture Accelerator, the UG Venture Fund and the UG Alumni Angel Investor Network.

It is a $100,000 Start-up programme that would provide funding and coaching to students and young entrepreneurs, being implemented in partnership with the Global Entrepreneurship Network.

Vice President Bawumia, who was the special guest at the launch, held at the University's Cedi Conference Centre, in Accra, said the programme is in line with the government’s vision of building

prosperous nation with a strong and thriving democratic society.

The Vice President, therefore, entreated the managers of UGIEP to work collaboratively with the existing initiatives such as the Youth Development Authority, the Youth Enterprises Fund, the National Entrepreneurship and Innovation Programme, and the Ghana Enterprises Agency to help young people to create sustainable jobs and opportunities.

He said government was determined to building a nation with mutual trust and economic opportunities for all, irrespective of one's background.

Vice President Bawumia said government's ambition is to create an education structure and content from merely passing examinations to building character, nurturing values, and raising literate and confident citizens who could think critically.

Therefore, he said, at the heart of the UGEIP is empowerment, leverage and value creation.

"These objectives are in line with our government’s strategic focus for the economy and human capital development within this COVID-19 era," he added.

"The President, Nana Addo Dankwa Akufo-Addo and his

a legacy of a knowledge-based, capable and resilient economy in the context of the fourth Industrial Revolution."

Vice President Bawumia noted that some 250,000 young people entered the job market every year, putting pressure on the limited employment opportunities.

Therefore, getting the population employed remained a major socio-economic challenge, he said, adding; "We need to create new jobs or help provide access to existing job vacancies".

The Vice President said government’s strategic anchors of human capital development, entrepreneurship, skills development, and education would also provide a platform for similar programmes to be scaled up, leveraging on the digitalisation agenda.

"Government is acutely aware that entrepreneurship will not thrive in an environment with difficulties in doing business,” he said.

"To this end, we are working to eliminate all bottlenecks in doing business as fast as possible.

The use of National Identification Card as a unique identifier, the digitisation of the processes at the Registrar General’s Department

and the passage of Act 992, give specific focus to business as part of the institutional innovation to grow and support entrepreneurship."

"Our pledge as a government is to continue to create the right environment to allow the initiatives and companies started through this programme to thrive. In so doing I am optimistic that this programme will unearth innovations and support and grow companies."

Dr Bawumia urged the key stakeholders, students, alumni, faculty, agencies and corporates to work collaboratively to ensure that the approach yielded the right results.

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MONDAY AUGUST 9, 2021

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Feature

MONDAY AUGUST 9, 2021

How the pandemic widened global current account balances

By Martin Kaufman and Daniel Leigh 2020 was a year of extremes.

Travel all but ceased for a period.

Oil prices wildly fluctuated. Trade in medical products reached new heights. Household spending shifted to consumer goods rather than services and savings ballooned as people stayed home amid a global shutdown.

Exceptional policy support prevented a global economic depression, even as the pandemic took a heavy toll on lives and livelihoods. The global reaction, as seen in major shifts in travel, consumption, and trade, also made the world a more economically imbalanced place as reflected in current account balances—a record of a country’s transactions with the rest of the world.

In our latest External Sector Report we found that the global reaction to the pandemic further widened global current account balances—the sum of absolute deficits and surpluses among all countries—from 2.8 percent of world GDP in 2019 to 3.2 percent of GDP in 2020. Those balances are set to widen further as the pandemic continues to rage in much of the world.

If not for the crisis, global current account balances would have continued to decline. While external deficits and surpluses are not necessarily a cause for concern, excessive imbalances— larger than warranted by the economy’s fundamentals and appropriate economic policies— can have destabilizing effects on economies by fueling trade tensions and increasing the likelihood of disruptive asset price adjustments.

A year like no other The dramatic fluctuations in current account deficits and surpluses in 2020 were driven by four major pandemic-fueled trends: • Travel declined: The pandemic led to a sharp decrease in tourism and travel. This had a significant negative impact on the account balances of countries that rely on tourism revenue, such as Spain, Thailand, Turkey, and even larger consequences for smaller tourism-dependent economies.

• Oil demand collapsed:

The collapse in oil demand and energy prices was relatively short lived, with oil prices recovering in the second half of 2020. However, oil-exporting economies, such as Saudi Arabia and Russia, saw current account balances decline sharply in 2020. Oil-importing countries saw corresponding increases to their oil trade balances.

• Medical products trade boomed: Demand surged by about 30 percent for medical supplies critical for fighting the pandemic, such as personal protective equipment, as well as the inputs and materials to make them, with implications for importers and exporters of these items.

• Household consumption shifted: As people were forced to stay home, households shifted their consumption away from services toward consumer goods.

This happened most in advanced economies where there was an increase in the purchase of durable goods like electrical appliances used to accommodate teleworking and virtual learning.

All of these factors contributed to some countries seeing a wider current account deficit, meaning they bought more than they sold, or a larger current account surplus, meaning they sold more than they bought. Favorable global financial conditions, with the unprecedented monetary policy support from major central banks, made it easier for countries to finance wider current account deficits. In contrast, during past crises where financial conditions sharply tightened, running

current account deficits was harder, pushing countries further into recession.

On top of these external factors, the pandemic led to massive government borrowing to finance health care and provide economic support to households and firms, creating large uneven effects on trade balances.

The outlook Global current account balances are set to widen even further in 2021 but this trend is not expected to last. The latest IMF staff forecasts indicate that global current account balances will narrow in the coming years, as China’s surplus and the US’ deficit falls, reaching 2.5 percent of world GDP by 2026.

A reduction in balances could be delayed if large deficit economies like the US undertake additional fiscal expansions or there is a faster-than-expected fiscal adjustment in current account surplus countries, like Germany.

A resurgence of the pandemic and a tightening of global financial conditions that disrupt the flow of capital to emerging markets and developing economies could also affect balances.

Despite the shock of the crisis and possibly due to its worldwide impact, excessive current account deficits and surpluses were broadly unchanged in 2020, representing about 1.2 percent of world GDP. Most of the drivers of excess external imbalances predate the pandemic and include fiscal imbalances as well as structural and competitiveness

distortions.

Rebalancing the world economy Ending the pandemic for everyone in the world is the only way to ensure a global economic recovery that prevents further divergence. This will require a global effort to help countries secure financing for vaccinations and maintain healthcare.

A synchronized global investment push or a synchronized health spending push to end the pandemic and support the recovery could have large effects on world growth without raising global balances.

Governments should step up efforts to resolve trade and technology tensions and modernize international taxation.

A top priority should be the phasing out of tariff and non-tariff barriers, especially on medical products.

Countries with excess current account deficits should, where appropriate, seek to reduce budget deficits over the medium term and make competitivenessraising reforms, including in education and innovation policies. In economies with excess current account surpluses and remaining fiscal space, policies should support the recovery and medium-term growth, including through greater public investment.

In the years to come, countries will need to simultaneously rebalance, while ensuring that the recovery is built on a solid and durable foundation.

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News

MONDAY AUGUST 9, 2021

Grab Huawei Band 6 for larger display, longer battery life

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emember a time where smart bands used to be just a thin band that was tightly worn around your wrist?

Those with a small monochrome display or a set of LED indicators, or some without either? Those were the days when a smart band served just a few main purposes, keeping track of fitness or few notification alerts.

However in today’s connected world, we demand a lot more from our trusty wearables, leading to strong health management features and even larger displays with longer battery life. While some of these features are more commonly found on smartwatches, smart bands usually tend to struggle a bit here.

This is where Huawei’s newly launched HUAWEI Band 6 comes into play with all of the smartwatch-like features, packed into its more affordable smart band body enabling it do a lot more than just a band.

But let’s look at what exactly we do differently with our smart bands today. For starters, with more attention being paid to the overall health and fitness, it is more convenient to access this data on the display of the smartwatch itself, as opposed to

using a separate app every time.

For example if you want to keep an eye on your important health indicators, such as blood oxygen levels (SpO2) at all times, With the HUAWEI Band 6, not only do you get a constant monitoring of these factors, but you can also view it in its large 1.47 inch AMOLED display.

HUAWEI Band 6 Speaking of large displays, the HUAWEI Band 6’s display sets it apart from other smart bands: the overall large size allows for more screen space and an immersive experience.

This means you can view all your notifications, health and fitness alerts and more on your smart band itself, while not having to spend extra money for a full-fledged smartwatch.

Another feature that you are going to depend on is battery life.

While some of us leave devices charging over night or charge them only when needed, there is the risk of forgetting to charge it entirely.

Huawei solves this pain point with a long lasting battery life on the HUAWEI Band 6, which can last for two whole weeks on a single charge. Basically this means you don’t need to charge it

as much as other devices and you are always ready to go!

However, even with all these changes, the core purpose of a smart band doesn’t change, which is in fact its fitness tracking capabilities: HUAWEI Band 6 packs in 96 workout modes that are automatically detected and tracked to get accurate data during performance.

Huawei also includes the HUAWEI TruSportTM algorithm, which deeply analyzes your exercise capabilities and provides detailed assessments, giving you a more comprehensive report of your progress.

With users today depending more on their wearable devices for being on top of their health and everyday alerts, it is no surprise that key features like display and battery life play a vital role. While smartwatches usually have these features, their price point can make it a costly affair.

The alternative is smart bands, which lack said features. However, with the HUAWEI Band 6, you get all the features you would see in a smartwatch, but for the more affordable price of a smart band, making it much more accessible for everyone.

Glovo Couriers receive safety training from MTTD

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n line with commitment to keep Glovers safe, Glovo Ghana has partnered the Motor Traffic and Transport Department (MTTD) of the Ghana Police Service to educate over 150 Glovo couriers on safety training.

The training focused on road safety areas including road safety problem/accidents statistics, and road traffic law of Ghana including RTA 683/04 as amended by act 761/08, L.I.2180/2012, and Ghana Highway code/1974 among others.

Speaking at the event, Pearlyn Budu, General Manager for Glovo

Ghana noted that the safety training also aimed at promoting road safety in the country.

“To ensure we are protecting our riders and the general public, we decided to have this safety training to better equip our riders with road safety information.

This is because we realized there is a huge rise in motor traffic accidents on our roads. As a multi-category delivery service company, we are heavily invested in educating our riders on proper road safety practices.

We all need education such as this to curb road accidents on

our roads and so we made this invitation open to other dispatch riders who are not Glovo staff.

And to refresh them from time to time, we intend to do this periodically,” she added.

Touching on customers’ feedback so far on Glovo’s products and services, Ms. Budu said her outfit has received positive feedback.

“So far, we have received positive feedback since our operations started in Ghana.

People are very excited about the products we have. Because of our multi-category delivery service, customers can sit at the comfort of their homes, offices, or anywhere in Accra to receive what they need”.

On his part, Head of Education, Research and Training at the Motor Traffic and Transport Department (MTTD) of the Ghana Police Service, Superintendent Alexander Obeng, commended Glovo for this sensitisation

program on road safety.

“I am elated that Glovo is partnering the MTTD to engage their frontline drivers to keep them safe as they achieve its aim as a delivery company.

Transportation service providers need continuous road safety training and I am happy that Glovo has put in this effort to protect their riders, pedestrians and the public from road accidents.

Most accidents are caused by human behaviour and thus we need intervention activities to be conscious and promote safety.

This is very good and I encourage other businesses that operate in the transportation ecosystem to do same”.

Glovo is one of the world’s leading multi-category delivery players. It launched its operations in Ghana in March 2021. The ondemand platform aims to make the lives of Ghanaians easier by providing access to convenient delivery services.

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African Business

MONDAY AUGUST 9, 2021

U.S. hails Sudan's economic transition, promises to civilian-backed gov't

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S aid chief Samantha Power Sunday hailed Sudan's transition during a visit to Khartoum where she discussed with officials the country's urgent economic and humanitarian needs.

Sudan has been going through a rocky transition since the ouster in April 2019 of strongman president Omar al-Bashir.

USAID said ahead of her visit that Western nations sought to support the civilian-backed transitional government after decades of authoritarian rule.

"My emphasis in this trip ... is squarely on Sudan's economic development needs and the ongoing humanitarian needs," she told a news conference in the Sudanese capital.

Power said the United States aimed to help Sudan "reinvigorate the economy" and "to attract foreign investment".

She later met the foreign minister, and will also meet other top officials before leaving on August 3.

On Saturday, Power visited Sudan's western Darfur region where she talked to people

displaced during the grisly conflict there.

Fighting broke out in 2003 when black African rebels, complaining of systematic discrimination, took up arms against Bashir's Arabdominated regime.

The UN says the years-long conflict killed 300,000 people and displaced 2.5 million.

In a tweet on Saturday, Power said she "first visited #Sudan in

2004—investigating a genocide in Darfur".

Her visit is the latest by a senior US official to Sudan which is pushing to end decades-long isolation under Bashir.

In December, Washington removed Sudan from its list of state sponsors of terrorism, and later also vowed to clear the country's arrears with the World Bank.

From Khartoum, Power will head to Addis Ababa for talks with Ethiopian officials on humanitarian access to the conflict-ridden Tigray region.

Sudan received tens of thousands of Ethiopian refugees since the Tigray conflict broke out in November last year.

African News

Angola to start building Luanda light rail in 2022

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frica's megacities are set back by a lack of modern infrastructure. From Lagos to Kinshasa, Luanda to Abidjan, the demand for bigger roads,

metros, bus systems, and bridges far outweighs the investment.

The United Nations recommends that by 2030 countries implement solutions for

sustainable urban growth whose mobility is more environmentally friendly.

To achieve this goal, Angola intends to launch a surface metro

for its capital, Luanda. "[This is] a project of great contribution, to ensure, exactly, that both communities and cities healthier, and also, from the point of view of infrastructure, to bring innovation to our city by solving a major difficulty that is urban mobility," said transport minister Ricardo de Abreu in Luanda.

German transportation company Siemens Mobility will build the light rail under a PublicPrivate Partnership.

It is estimated to cover a distance of 149 km at a cost of around 3.5 billion dollars.

Luanda, the capital of oil-rich Angola houses 8 million people.

The figure is expected to surge to 12 million people by 2030.

The German government has pledged to help Siemens secure financing for the project.

Luanda is one of Africa's biggest cities. And traffic gridlocks are common due to a lack of a modern public transportation system.

African News

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MONDAY AUGUST 9, 2021

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News

MONDAY AUGUST 9, 2021

Ghana to participate in Singapore Africa Business Forum

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hana will be among the African countries to participate in this year’s Singapore African Business Forum scheduled to take place from August 23 to 27.

The virtual forum organised

by Enterprise Singapore, an agency championing enterprise development, would bring together trade and business experts from Singapore and African countries to explore opportunities on trade and investment for socio-economic development.

Speaking at a virtual media briefing, Ms Jean Ng, the Regional Director, Enterprise Singapore, said the forum would serve as a platform for holistic engagement between Singapore, Asia, and Africa and raise awareness of Africa’s growth opportunities, promote Singapore as a hub for Asia-Africa trade and investment, among others.

The forum will focus on topics like “Africa’s Urban Future: Sustainable Planning and Construction, Manufacturing in Africa: Deepening Value-Capture in the continent, Digital Africa: The Next Tech Frontier.

Ms. Ng said in line with Enterprise Singapore’s role in developing Singapore’s startup ecosystem, the agency is focusing on the five pillar strategies-

deepening global connections to support SG startups to internationalise and attract global startups, and catalyse more platforms for co-innovation and deployment.

The rest of the strategies is to strengthen human capital by growing local and global talent pool for SG startups, catalyse financing opportunities and create a network of infrastructure to support startups.

“Our economy is diversified, powered by a mixture of manufacturing and services sectors, of which many of these businesses are not just domestic, but international”.

“Singapore offers access to fast growing markets like China, India, and Vietnam and committed to pursue good relations with other countries as well with strong free trade networks through Free Trade Agreements with major economies and countries, making us an ideal partner”, she said.

Ms Ng said Singapore had a favourable and conducive environment for businesses to operate in a stable legal, regulatory, and tax framework with a highly qualified, globalready workforce to support trading companies’ international business.

This, she said, is necessary because an extensive participant

network created an effective, neutral marketplace for trade origination, while strong financial infrastructure enabled low-cost financing of high trade volumes.

She said Singapore had been a long-time development partner in Africa and have used their development models to influence manufacturing, sustainable infrastructure, innovations, and technology across the continent.

With the influx of Chinese influence, she said Singapore can provide an alternative model of partnership of development, particularly post COVID-19 pandemic.

Since 2015, Singapore has been among the top 10 investor economies in Africa, measured by Foreign Direct Investment stock.

According to the United Nations Conference on Trade and Development, from 2015 to 2019,

Singapore’s investments into Africa rose from $17 billion to $20 billion.

On diplomatic visits and initiatives between Ghana and Singapore, she said the Bank of Ghana and Monetary Authority of Singapore commenced discussions on December 2020 to adopt the Business san Borders open hub of platforms between Singapore and Ghana.

The close cooperation will benefit small and medium sized enterprises (SMEs) and micro SMEs in both countries by expanding their connectivity with their counterpart economy while introducing innovative FinTech and digital tools to help SMEs seamlessly complete business needs.

GNA

GRNMA calls on government to halt re-introduction of community health workers degree holders), privately and by the Nursing and Midwifery

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he Ghana Registered Nurses and Midwives Association (GRNMA) has called on government to as a matter of urgency halt the reintroduction of the mommunity health workers.

This comes after the association’s attention was drawn to a Memorandum of Understanding (MOU) signed between the Ghana Health Service (GHS) and the Youth

Employment Agency (YEA) for the re-introduction of the modular for a 6-month training of community health workers (zoom nurses).

In a statement jointly signed

by Perpertual Ofori-Ampofo, President and David Tenkorang -Twum General Secretary of GRNMA, the association said there are unemployed nurses and midwives of all categories (certificate , diploma and

publicly trained, numbering around fourteen thousand, who are awaiting government employment.

“Instead of committing new funds to train community health workers (zoom nurses), those funds should be channeled into the issuance of financial clearance to absorb those awaiting employment who have the requisite skill and knowledge to help the country in its fight against the COVID-19 pandemic.”

The association further called on stakeholders and the public to desist from attaching the name “nurse” to any under trained person who attains a 6-month training or less and parades himself or herself as a nurse.

The statement said nursing is a noble profession and it took a required period of theoretical training and practice as stipulated

Council of Ghana to become a nurse.

The GRNMA said it is very unhappy about the constant effort of stakeholders, including successive governments, to adulterate the nursing profession.

The statement said the International Council of Nurses defined a nurse as a person who has completed a programme of basic, generalised nursing education and authorised by the appropriate regulatory authority to practice nursing in a country.

It said basic nursing education is a formally recognised programme of study providing a broad and sound foundation in the behavioural, life, and nursing sciences for the general practice of nursing, for a leadership role, and for post-basic education for specialty or advanced nursing practice.

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MONDAY AUGUST 9, 2021

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Feature

MONDAY AUGUST 9, 2021

That old time anti-vaxx feeling

By Daniel Gros The best single predictor of vaccine uptake per US state is not political affiliation, but the share of the population that believes the human race has always existed. Such findings do not bode well for the global effort to boost vaccination rates.

Vaccination is the best protection against COVID-19, and the evidence for that is overwhelming. While protection against infection or transmission is not guaranteed – especially with the Delta variant raging – getting vaccinated substantially reduces the risk of severe illness, hospitalization, and death from the coronavirus.

Widespread vaccination is thus the key to enabling responsible governments to relax publichealth restrictions, thereby allowing the economic recovery to continue. But this seems increasingly to be out of reach.

Researchers estimate that 7085% of the population needs to be vaccinated (or otherwise immune to COVID-19) to end the pandemic. Yet even in Israel, which was leading the world in its vaccination drive at the beginning of 2021, the share of the population that has been vaccinated has stalled at just over 60%. In the United States, only about half the population is now protected, and vaccination rates have plummeted from 3.2 million doses per day in April to fewer than 700,000 doses per day as of early August.

The US case is particularly

interesting, because the countrywide average obscures large differences among socioeconomic groups and across states. Whereas over 63% of people in Massachusetts and Maine are fully vaccinated, only 34% of people in Mississippi and Alabama are. Across towns and counties, the disparities are even larger.

This is less a problem of access than of acceptance. It has been widely observed that, at least in the US, the willingness to be vaccinated is correlated with political affiliation. Polls show that only around 54% of Republican adults have been vaccinated, compared to 86% of Democrats. In counties that voted for Donald Trump, a Republican, in the 2020 presidential election, vaccination rates are more than ten percentage points lower than in counties that voted for Joe Biden, a Democrat.

But while the statistical link between political affiliation and vaccine hesitancy is strong, correlation does not equal causation. Moreover, anti-vaccine sentiment is nothing new: the NoVax movement existed long before the COVID-19 pandemic.

The question, then, is whether people are refusing the COVID-19 vaccine merely because of their political beliefs, or whether those political beliefs and their stance on the vaccine reflect other, deeper factors.

A look at people’s broader attitudes toward science and trust in the establishment (scientific and otherwise) could help us to find the answer. One useful indicator here is the acceptance

of evolution. Surveys have found repeatedly that a substantial minority of Americans reject the scientific consensus that humans are the product of a long process of natural selection.

Belief in evolution is strongly linked to acceptance of vaccination. Indeed, the best single predictor of vaccine uptake per US state is the share of the population that believes the human race has always existed.

Interestingly, religious beliefs do not seem to be decisive here. The link between vaccine uptake and the prevalence of the belief that divine intervention steered evolution is rather weak. Furthermore, political partisanship, as measured by voting patterns in the 2020 presidential election, loses its predictive power over vaccine uptake after one accounts for belief in evolution.

The implication is that attitudes toward vaccination are rooted not in party allegiance, but in a latent mistrust of science. This may reflect how democracy works more broadly.

As Christopher H. Achen and Larry M. Bartels argue in their 2017 book, Democracy for Realists: Why Elections Do Not Produce Responsive Government, it is not that political parties present their programs, and rational voters choose which to support; instead, parties represent existing identity groups.

In the US, the Republican Party has positioned itself so that it captures the segment of Americans who do not accept science if its results collide with their worldview. This type

of person does not believe in evolution (roughly one-quarter of the population, on average) and tends to reject COVID-19 vaccines.

But the GOP is not necessarily responsible for those stances.

So, contrary to Jeffrey Frankel’s recent assertion, America’s Republicans probably cannot be said to be “killing their voters.”

In a sense, this is bad news.

If people’s decision not to get vaccinated is based on fundamental beliefs, it will be much more difficult to change than if it was based on political partisanship or health concerns.

Disseminating more factual information – more studies, more statistics – will not make a difference. After all, evolution has been taught in schools for generations.

Financial incentives, like lotteries, might sway some of the doubters. But a substantial community of hardcore antivaxxers is likely to remain – and not only in the US. Compulsory vaccination elsewhere, such as in France, is also being met with strong resistance. As the Delta variant fuels new COVID-19 outbreaks, governments in countries with a strong anti-vaxx movement have few good options left.

Daniel Gros is a member of the board and a distinguished fellow at the Centre for European Policy Studies.

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Energy

MONDAY AUGUST 9, 2021

Newly constituted NPA board inaugurated

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he newly constituted board of directors of the National Petroleum Authority (NPA) has been inaugurated with a call on members to be keen on quality assurance within the downstream petroleum value chain.

The Minister of Energy, Dr. Matthew Opoku Prempeh, who inaugurated the board said in an era where petrochemical products are wrought with changes locally and internationally even in terms of specifications, design and pricing, there must be strong leadership to avert consumer perception challenges and controversies.

He also reminded them that the petroleum downstream industry requires vigilance, proactiveness, transparency and constant stakeholder engagement.

"I pledge my readiness to support them. I have full confidence in the board’s ability to make the NPA a regulator worth its salt in the energy sector.”

The NPA board is chaired by

Mr. Joe Addo-Yobo.

Members of the board include: NPA boss, Mustapha Abdul-

Hamid, Diana Mogre, Manuel Sawyyerr Esq., Clement Osei Amoako, Bernard Owusu, and Dr.

Nana Agyei Baffour Awuah among others.

Renewable-energy-focused entity launched to advance pool of funding available for renewable energy to drive growth uptake in Africa renewable-energy developments and employment”.

A

frican Rainbow Energy and Power (Arep) and Absa have launched a new entity, called African Rainbow Energy – an “African-led, world-class, renewable-energy investment platform”.

Arep will make an initial investment in assets covering wind, solar photovoltaic and biomass projects with an installed capacity of more than 700 MW of renewable energy.

Absa will make an initial

investment of R500-million in cash and transfer R5-billion of its existing renewable energy assets to African Rainbow Energy.

This will result in African Rainbow Energy having about R6.5-billion of gross assets, covering 31 renewable assets, making it one of the largest and most diverse independently owned energy businesses in South Africa.

The establishment of African Rainbow Energy expands the

in South Africa at a time when the country is accelerating its plans to expand and diversify its energy base through the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP).

The private sector is simultaneously expanding its energy supply, which the companies say is an “important step for the South African economy, which aims to source reliable and cost-effective

This collaboration supports Arep’s objectives to use modern and renewable-energy technologies to provide affordable electricity in South Africa and on the African continent.

Absa, meanwhile, is uniquely positioned, given its key role in the African continent’s economy and its commitment to the development of renewable energy and the green economy.

African Rainbow Energy will invest in renewable technologies including solar, wind and battery energy storage solutions. It has already secured a deep investment pipeline and has partnered on a number of bids in Round 5 of South Africa’s highly successful REIPPPP. African Rainbow Energy will also invest in the private power sector and is working with several companies on bespoke energy solutions.

The effective date of the fund is subject to the fulfillment of certain conditions precedent, which are expected to be concluded in the fourth quarter of this year.

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News

MONDAY AUGUST 9, 2021

Ghana importers pay GH¢1.9b in demurrages in 10 years – Shippers

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hanaian importers within a period of ten years paid a total of $382 million (GH¢1.910 billion) at an exchange rate of GH¢5.00 per dollar, in the form of demurrages to shipping lines outside the country.

A Ghana Shippers Authority (GSA) research data indicates that in 2010 about $40 million was paid; in 2013 the figure jumped to $85 million; moving still upward in 2016 to $95 million; but dropped marginally to $76 million in 2017; moving downwards still in 2018 to $59 million and in 2019 dropped to $27 million.

Mr. Fred Asiedu Dartey, Head of Freight and Logistics, Ghana Shippers Authority (GSA), has therefore described as national economic bane the consistent payment of demurrages by Ghanaian importers to shipping lines.

Mr Asiedu-Dartey was speaking at the fifth, “GNA-Tema Stakeholder Engagement and Workers’ Appreciation Day,” seminar at the Tema Regional Office of the Ghana News Agency, which is a progressive media caucus platform created to give opportunity to state and nonstate actors to interact with journalists and address national

issues.

The event also serves as a motivational mechanism to recognize the editorial contribution of reporters to the professional growth and promotion of the GNA Tema Regional Branch as the industrial news hub, while contributing to national development.

Explaining the typical schedule for container demurrage, Mr Asiedu-Dartey noted that the first seven days of the arrival of a container is free, and encouraged importers to take advantage of the period to clear their goods.

He said however from the eighth to the 14 days the importer pays $22.00 (GH¢110.00) per day for a 20 footer container and $44.00 (GH¢220.00) for a 40 footer container; from the 15th to the 21st day, the charge moves up sharply as the importer would pay $35.00 (GH¢175.00) per day for 20 footer container and $70.00 (GH¢350.00) for a 40 footer container.

He said after 21 days, the charge for 20 footer container is pegged at $48.00 (GH¢240.00) daily and $96.00 (GH¢480.00) for a 40 footer container.

On the underlying causes, Mr Asiedu-Dartey said the GSA

have identified a number of issues including; bureaucratic operational procedures, system issues – changes in cargo clearance platforms; and delays at the Customs Technical Services Bureau (CTSB).

Others includes; delays in exemption or permit processing, questionable professional competence of some Clearing Agents, errors in declarations cash flow issues, and deliberate delay for ulterior motives.

Speaking on: “Emerging trends in Ghana’s maritime industry – the perspective of the Ghana Shippers Authority,” Mr AsieduDartey noted that with intensified sensitization by the Authority importers were beginning to appreciate the need to avoid

payment of demurrage.

Mr Asiedu-Dartey said even though there had been significant reductions, importers could still cut the figure down by putting in measures to ensure that they cleared their cargos on time to prevent attracting additional fees in the form of demurrage to the shipping lines and rent to the Ghana Ports and Harbours Authority (GPHA).

Mr Francis Ameyibor, GNA Tema Regional Manager, indicated that the Agency uses the platform to deepen the working relations with the stakeholders to ensure that both the media and the corporate world work together towards national development.

GNA

Transport Minister chairs West and Central Africa Maritime Organisation

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he Minister for Transport, Hon. Kweku Ofori Asiamah, made history by becoming the first Ghanaian to be elected chair of the prestigious Maritime Organisation for West and Central Africa (MOWCA).

He took over from Mr. Khouraichi Thiam from the Republic of Senegal.

The historic election took place during the 8th Bureau of Ministers and 15th General Assembly of MOWCA held in Kinshasa, the Democratic Republic of Congo.

Mr. Bai Lamin Jobe, Minister of Transport, Works and Infrastructure of The Gambia emerged as First Vice-Chairman while the Minister in charge of Transport and Maritime in the Republic of Congo emerged 2nd Vice-Chair.

The Central African Republic was also elected as the rapporteur.

Following his election, Mr. Asiamah is expected to oversee the affairs of the 46-year-old organisation which is made up of 25 countries.

One of the main challenges he has to fix immediately upon assumption of office is the election of a Secretary-General as the Kinshasa conference failed to elect one following the confirmation of the end of tenure of Mr. Alaine Michelle Luvambano.

Mr. Luvambano served as Secretary-General of MOWCA from 2011 to 2021. He was mandated to hand over to an Interim Secretary-General soonest. The MOWCA Rule and Procedures provides that the position of Secretary-General is held for a term of four years and renewable only once for another four years.

It is anticipated that a new Secretary-General will emerge at an extraordinary meeting expected to be convened by Mr. Asiamah within the next six months to man the day-to-day activities of the organization.

The Maritime Organization for the West and Central Africa (MOWCA) was established in 1975 (Charter of Abidjan) as the

Ministerial Conference of West and Central African States on Maritime Transport (MINCONMAR). The name was changed to MOWCA as part of reforms adopted by the General Assembly of Ministers of Transport, at an extraordinary session of the Organization held in Abidjan, the Republic of La Cote D’Ivoire from August 4-6, 1999.

The Objective of MOWCA is to serve the regional and international community for handling all maritime matters that are regional in character.

MOWCA unifies 25 countries on the West and Central African shipping range, inclusive of five landlocked countries. These

countries comprise of 20 coastal states bordering the North and South Atlantic Ocean, and to explain the maritime link for landlocked countries the ports of the Ocean interfacing countries provide the seaborne trade of those that are landlocked.

At the Kinshasa conference, the 25-member country organization discussed how best to harness their potentials for member states and regional economic growth even in the face of a ravaging COVID-19 pandemic.

Countries were unanimous about forging a stronger front for enhanced maritime security while still considering matters relating to the establishment of a Regional Maritime Development Bank for ease of access to financing maritime assets and infrastructure.

Ghana’s delegation to the Kinshasa conference was led by the Ag. Chief Director at the Ministry of Transport, Mrs. Mabel Sagoe, who received the staff of office on behalf of Mr. Asiamah.

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MONDAY AUGUST 9, 2021

19

Aviation

MONDAY AUGUST 9, 2021

2020 Worst Year on Record for Airlines, Says IATA

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hanks to the Covid-19 pandemic, last year marked the largest recorded decline in airline passengers transported since the International Air Transport Association (IATA) began tracking global revenue passenger kilometers (RPKs) in the 1950s, according to the IATA World Air Transport Statistics (WATS) report released late on August 3. Overall, airlines flew 1.8 billion passengers last year, down 60.2 percent from 2019, while RPKs fell 69.5 percent year-overyear (YOY).

In the face of global travel restrictions, international RPKs plummeted 75.6 percent last year as countries closed their borders, while domestic RPKs dived 48.8 percent over the same comparable period. Meanwhile, industry passenger revenues declined last year by 69 percent, to $189 billion, and net airline losses totaled $126.4 billion.

Measured in available seat kilometers (ASKs), global airline capacity decreased by 56.7 percent, with international capacity being hit the hardest, declining by 68.3 percent.

Systemwide passenger load factor dropped to 65.1 percent last year, compared with 82.5 percent in 2019.

By world region, the Middle East region suffered the largest loss in passengers carried, falling 67.6 percent YOY, to 76.8 million

passengers. This was followed by Europe (389.9 million passengers, -67.4 percent), Africa (34.3 million passengers, -65.7 percent), North America (401.7 million passengers, -60.8 percent), and Latin America (123.6 million passengers, -60.6 percent).

Notably, China became the largest domestic market for the first time ever—at 780.7 million passengers, a YOY decrease of 53.4 percent— as air travel rebounded faster last year following its efforts to control Covid-19.

Just this week, Chinese authorities imposed new travel restrictions, including extensive flight cancellations, in an effort to contain a surge in infections from the latest Delta variant of the Covid virus. All domestic flights were canceled out of the cities of Nanjing and Yangzhou.

Authorities said that the flare-up in infections was in part traced to contact between airport workers and passengers at Nanjing Lukhou International Airport.

Last year, the top five airlines ranked by total scheduled passenger-kilometers flown were American Airlines (124 billion), China Southern Airlines (110.7 billion), Delta Air Lines (106.5 billion), United Airlines, (100.2 billion), and China Eastern Airlines (88.7 billion).

Cargo, however, was a bright spot for the industry as the market adapted to keep

pandemic-related goods moving— including vaccines, personal protective equipment (PPE), and vital medical supplies—despite the massive drop in capacity cargo holds of passenger aircraft.

Available cargo tonne-kilometers (ACTKs) fell 21.4 YOY, creating a capacity crunch that increased cargo load factor by 7 points, to 53.8 percent—the highest since IATA started tracking this metric in 1990. By year-end 2020, cargo tonne-kilometers (CTKs) had returned close to pre-crisis values. However, the 9.7 percent YOY decline in CTKs last year was still the largest since the global financial crisis in 2009, IATA said.

“2020 was a year that we’d all like to forget. But analyzing the performance statistics for the year reveals an amazing story of

perseverance,” commented IATA director general Willie Walsh, who until September 2020 was CEO of the International Airlines Group.

“At the depth of the crisis in April 2020, 66 percent of the world’s commercial air transport fleet was grounded as governments closed borders or imposed strict quarantines. A million jobs disappeared. And industry losses for the year totaled $126 billion.

“Many governments recognized aviation’s critical contributions and provided financial lifelines and other forms of support.

But it was the rapid actions by airlines and the commitment of our people that saw the airline industry through the most difficult year in its history.”

AIN

Qatar grounds more A350 Widebodies over fuselage issues

By Charles Alcock

Q

atar’s civil aviation authorities today ordered the immediate grounding of 13 Airbus A350 aircraft operated by flag carrier Qatar Airways. The airline said the decision was made after regular condition monitoring checks

revealed that “the fuselage surface below the paint is degrading at an accelerated rate.”

The carrier is moving quickly to bring a number of A330s back into service to replace the larger A350s. It added that it is evaluating other solutions to restore capacity to the fleet.

“The airline is working with its

regulator to ensure the continued safety of all passengers and on this basis, and following the explicit written instruction of its regulator, 13 aircraft have now been grounded, effectively removing them from service until such time as the root cause can be established and a satisfactory solution made

available to permanently correct the underlying condition,” Qatar Airways said in an August 5 media statement.

In June, the airline said that it had withdrawn an undisclosed number of A350s from service while it resolved what it characterized as an ongoing quality issue with Airbus. At the time, it halted further deliveries, having already received 53 units from a total commitment for 76 aircraft. The operator is the largest customer for the longrange widebody, which has an allcomposite fuselage.

“With this latest development, we sincerely expect that Airbus treats this matter with the proper attention that it requires,” said Qatar Airways chief executive Akbar Al Baker in a further statement.

Airbus has declined to comment on the confirmed report that further Qatar Airways A350s have been grounded.

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Feature

MONDAY AUGUST 9, 2021

What's behind the “crisis of democracy”?

According to the conventional wisdom, the biggest threats to liberal democracy today come from abstract groups of people, with one side blaming "elites" and the other decrying the poor judgement of the masses. Yet by ignoring the evolving role of political institutions, this dichotomy misses what is really going on.

Donald Trump is out of the White House, but nobody in their right mind would say that the world has been made safe for democracy. Trump’s return cannot be ruled out, and even if the man spends the rest of his days as the grifter cum internet troll that he is, the United States (and the world) must deal with a thoroughly Trumpified Republican Party.

The GOP is now bent on undermining US democracy through voter suppression and by subverting the results of elections that do not go its way. And the US is hardly alone in facing assaults on its democracy. Brazil and India – two of the world’s largest democracies – are both governed by far-right populists; and within the European Union, Poland and Hungary are accelerating their descent into autocracy.

It is no surprise that there has been a boom of “crisis-ofdemocracy” books since Trump’s election in 2016. But are current threats to democracy being debated on the right terms? ome observers do not hesitate to blame the people themselves.

According to this view, which could have been recycled straight

from late-nineteenth-century mass psychology, ordinary folk are generally irrational and easily seduced by demagogues making false promises, be they about the benefits of Brexit, or in the vein of phony “working-class conservatism” in the US. Others, meanwhile, blame “elites” for our political malaise.

This privileged cohort, it is said, encouraged a form of globalization that benefits only those who travel in business class.

Within individual nation-states, these high-fliers increasingly constitute what some critics call an oligarchy.

Although these two diagnoses are diametrically opposed, they share a methodology focusing on groups of people – be it the many or the few. What is lacking is a focus on the institutions of liberal democracy, and on how changes to these in recent decades may be facilitating the rise of authoritarian populists. Only by understanding those developments can we begin to transform the system, not just as an anti-Trump quick fix, but as part of a deeper realization of democratic ideals.

Each of the three books under review makes an important contribution to that effort. Among them, Hélène Landemore’s is the most ambitious. A political theorist at Yale University, she advances a new model of what she calls “open democracy,” a scheme that breaks with two liberal-democratic institutions that are usually taken for granted: elections and political parties.

Landemore thinks it is wrong to assume that the form of

“representative democracy” constructed in the eighteenth century is the only way to realize “people power” in the modern world. In her view, that model does nothing more than ask citizens to consent to decisions by elites. A better approach, she argues, would replace elected representative legislatures with “open mini-publics.”

These randomly selected assemblies, also known as “sortition chambers” or “lottocracies” (as in, rule by those chosen by lot), could number from 150 to 1,000 citizens, and would allow people to exercise power directly.

In Landemore’s scheme, citizen assemblies would be tasked not only with agenda-setting but also, crucially, with lawmaking. Their proceedings would be conducted in the open (another meaning of “open democracy” beyond “open to the people”), and they would be connected to the broader society through “crowdsourcing platforms” and additional “deliberative forums.”

The practical model, here, is jury service, which also provides a philosophical justification for Landemore’s proposals.

We already generally accept that amateurs can make good decisions if they are sufficiently open-minded and properly advised by experts in a structured deliberative process. Landemore hastens to point out that this approach is not a form of “direct democracy” or continuous mass participation. People selected for the assembly would be genuinely representative (as in a jury of one’s “peers”), but they also

would form a kind of temporary elite, since it is they – not the rest of us – who ultimately would get to decide matters.

Landemore sees this kind of system as far superior to one dominated by powerful politicians, who almost always hail from, and respond most to, higher socio-economic strata. Her ideal is for people to represent others and then be represented in turn – a riff on Aristotle’s notion that the hallmark of a proper political association is taking turns at ruling and being ruled.

Ultimately, Landemore believes that the problem ailing democracies today is a feature of the system, not a bug. The real issue is not globalization, mediadriven culture wars, or whatever other explanations the current conventional wisdom offers up. It is that there is a design flaw in any system of electoral democracy based on party competition. Such arrangements are intentionally elitist; they are meant to keep the people out – even literally (Landemore notes that parliament buildings are supposed to look intimidating).

Moreover, Landemore believes that elections create inequality as a matter of course, because they are necessarily discriminatory.

Voters deem some candidates to be better than others, often based on criteria that are not related to any capacity to further the common good – charisma or wealth, for instance. In this system, political parties act

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21 CONTINUED FROM PAGE 22 as gatekeepers to the political process, reinforcing exclusion and – as if all this weren’t bad enough – creating internal oligarchies (a charge that is as old as political parties themselves).

The obvious objection to Landemore’s “open democracy” would seem to be that it is unrealistic. But she would point to plenty of examples of randomly selected citizens deliberating in productive ways. Recent case studies include citizen assemblies making decisions about same-sex marriage and abortion in Ireland; the “crowdsourced” constitutionmaking process in Iceland (though professional politicians eventually put a stop to this); regulations of snowmobiles in Finland (not a trivial issue, as those who have experienced Finnish winters know); and, most recently, France’s Citizens’ Convention on Climate, which concluded its deliberations in late June 2020 with 149 proposals for moving to a low-carbon economy.

A more subtle objection is that such deliberative bodies also can end up favoring the privileged, either because those who feel unqualified will abstain or because more educated and eloquent participants will dominate the debate. Landemore concedes that in the Icelandic and Finnish exercises, which she observed first-hand, educated males played a particularly prominent role. But she offers the remedy of “oversampling

MONDAY AUGUST 9, 2021

small, vulnerable minorities,” on the assumption that a “carefully curated” group will be less likely to become a free-for-all for big (usually male) egos.

The strength of Landemore’s proposal is that she takes equality much more seriously than do other conventional contributions to what critics might call the “democracy-defense industry.”

All too often, these end up offering hollow reassurances that everything will be fine as long as the Trumps of the world can be kept at bay. While lottery selection does not ensure equality of influence (since the rhetorically skilled will always have a natural advantage), it does give all citizens an equal chance of being chosen to participate.

True, opportunities for bribery and corruption would not be eliminated entirely, because the lucky ones chosen might still be promised lucrative “work” after – and depending on – their service (just think of the sinecures with which Tea Party Republicans often end up). But a lottocracy nonetheless would be an advance from today’s revolving-door systems, wherein politicians and lobbyists constantly trade places.1 SHORT STRAWS AND SHORTCOMINGS But while Landemore has good arguments for her proposal’s feasibility, there are also wellknown principled objections to it that she does not quite address.

For starters, her system promises inclusion and openness, but it

ultimately excludes all who have not been chosen in the process of random selection. In large countries, many people will never get a turn (indeed, serving would amount to winning the lottery).

Less obviously, a lottocracy might fail to fulfill one of the functions that elections reliably serve: the peaceful resolution of conflict through vote counting.

If one accepts political realists’ argument that elections are always essentially conducted in the shadow of civil war, the counting process serves to demonstrate the relative strength of each conflicting party.

If this point seems abstract, consider the events of this past winter. The attack on the US Capital on January 6 was a reminder of how important it is that the losers in an election accept that they are outnumbered. That recognition gives them a reason not to engage in civil war. Since there will be another election within a set time frame, there is an incentive for everyone to keep working within the political system: there is always the hope that they can increase their numbers in the next round.

What on Earth are losers in a lottocracy supposed to do? At best, they might try to mobilize fellow citizens so as to influence future sortition assemblies – perhaps through the kind of “crowdsourcing” that Landemore gestures toward. But if mass persuasion becomes a common practice, it would be only a matter of time before the system gives rise to organized groupings

– which is to say, to political parties.

Landemore is too sophisticated a thinker to assume that all political challenges have a single rational answer that is ultimately discoverable with enough deliberation. Yet, like other advocates of deliberative democracy (and lottocracy, in particular), she appears to have an underlying suspicion that political conflict and partisanship are irrational, or at least vaguely illegitimate, phenomena.

Obviously, political parties have plenty of faults of their own. But if one wants to replace them, one must explain how else their standard functions will be performed. Among the important roles played by organized parties are structuring political conflicts (furnishing what the French social theorist Pierre Bourdieu called a “vision of divisions”); aggregating interests; and providing individuals with cues about how to position themselves politically in the absence of indepth consideration of every policy question that arises.

To her credit, Landemore is self-critical enough to recognize these issues. She sees the danger of creating new (albeit temporary) elites, and she does not rule out the re-appearance of political parties of some sort. To provide additional mechanisms for deliberation, she would also allow for referenda and citizen initiatives as default measures for losers who feel that lottocratic institutions have made a fundamentally wrong decision.

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NO. B24 / 232 | NEWS FOR BUSINESS LEADERS

MONDAY MAY 3, 2021

MONDAY AUGUST 9, 2021

Global food prices decline in July

G

lobal food commodity prices fell in July for the second consecutive month, according to a benchmark United Nations report.

The FAO Food Price Index averaged 123.0 points in July 2021, 1.2 percent lower than the previous month although still 31.0 percent higher than its level in the same period of 2020.

The index tracks changes in the international prices of the most globally traded food commodities.

The July drop reflected declines in the quotations for most cereals and vegetable oils as well as dairy products.

The FAO Cereal Price Index was 3.0 percent lower in July than in June, pushed down by a 6.0 percent month-on-month drop in international maize prices associated with better-than-earlier projected yields in Argentina and improved production prospects in the United States of America, even as crop conditions in Brazil remained a concern.

Prices of other coarse grains such as barley and sorghum also dropped significantly, reflecting weaker import demand. However, wheat quotations edged 1.8 percent higher in July - reaching their highest level since mid-2014

- in part due to concerns over dry weather and crop conditions in North America.

At the same time, international rice prices hit two-year lows, impacted by currency movements and a slow pace of sales caused by high freight costs and logistical hurdles.

The FAO Dairy Price Index declined 2.8 percent from June, impacted by slower market activity in the Northern hemisphere due to ongoing summer holidays, with skim milk powder registering the largest drop, followed by butter, whole milk powder and cheese.

The FAO Vegetable Oil Price Index reached a five-month low, declining 1.4 percent from June, as lower prices for soy, rape and sunflower seed oils more than offset rising palm oil values.

A lower biodiesel blending mandate in Argentina pressured soyoil prices lower, while those for rape and sunflower oils were influenced by prospective record supplies for the 2021/22 season.

In contrast, the FAO Sugar Price Index increased by 1.7 percent in July, its fourth monthly increase.

The rise was mostly related to firmer crude oil prices as well as uncertainties over the impact of

recent frosts on yields in Brazil, the worlds largest sugar exporter, while good production prospects in India prevented a larger jump.

The FAO Meat Price Index rose marginally from June, with quotations for poultry meat rising the most due to increased imports by East Asia and limited production expansions in some regions. Bovine meat prices also strengthened, buoyed by high imports from China and lower supplies from major producing regions. Meanwhile, pig meat prices fell, following a decline in imports by China.

Ghana School Feeding Programme assures caterers of payment

T

he Ghana School Feeding Programme has assured caterers of payment of the first term arrears soon.

Siiba Alfa, Head of Public Relations at the Ghana School Feeding Programme, in a statement commended the

caterers for their patience over the delay in the payment of the first term arrears.

She lauded the caterers’

dedication to provide daily meals for school children across the country, adding the arrears would be paid soon.

She, however, expressed worry over reports that some caterers were skipping cooking schedules for pupils.

The statement said the conduct of those caterers amounted to a violation of the contract agreement.

“It must be stated that caterers who have refused to cook for the children will suffer deductions in their payments for all the noncooking days.”

It said per the contract agreement, caterers were supposed to pre-finance the cooking services for a term or more, urging the caterers to strictly adhere to the contractual obligations with the Ghana School Feeding Programme.