Business24 Newspaper 7th February, 2022 by Business24 Online

MONDAY FEBRUARY 7, 2022

BUSINESS24.COM.GH

Monday February 7, 2022

Ghana yet to attain 1kg per capita consumption of cocoa – Minister

NO. B24 / 302 | News for Business Leaders

Re-imagining sales in the 'New Normal’

See page 5

See page 12

Gov’t to institute financing policy for stateowned firms -Fin. Min By Eugene Davis ugendavis@gmail.com

he Finance Minister, Ken Ofori-Atta, has announced a financing policy for specified entities, particularly state-owned enterprises (SOEs) in the short to medium term, aimed at making them profitable and efficient. Speaking at the 2022 Policy and Governance Forum under the theme ‘Improving the performance of Specified Entities: Leadership and Technology’ in Accra recently, he said the policy will be anchored on

NSS saved nation GH¢112m in blocked payments to fraudsters – NSS boss

he infusion of digital technology in the operations of the National Service Scheme has saved Ghana at least GH¢112m in blocked payments to undeserving persons, the Executive Director, Osei Assibey Antwi has disclosed. Making the disclosure during an unannounced visit by the Vice President,

Cont’d on page 2

Cont’d on page 3

AGRA urges concerted efforts on food security By Reuben Quainoo

he fate of the world’s poorest and wealthiest nations is interconnected, and eradicating poverty and hunger will be impossible without urgent and focused country cooperation efforts directed at long-term development, say stakeholders at a meeting on the Validation of Ghana Food System Dialogues and Landscape Cont’d on page 3

Ofori-Atta courts public support for resilient economy

M The food and nutrition security situation in sub-Saharan Africa is dire with serious consequences for public health and sustainable development.

inister for Finance, Ken Ofori-Atta, has stated that, the time had come for all well-meaning Ghanaians to support Government to build the resilient, dynamic, and prosperous society we Cont’d on page 8

Cont’d on page 2 Cont’d on page 2

Editorial / News

MONDAY FEBRUARY 7, 2022

Editorial Move to reduce SOEs burden on state coffers plausible

n analysis of the performance of stateowned enterprises for the 2020 operational year largely trended downwards. SOEs consistently posted aggregate net losses from FY2015 (GH¢2.16 billion) to FY2020 (GH¢5.34 billion), a compounded annual growth rate of 16.32 percent. Of the 44 SOEs and 16 JVCs covered in the draft 2020 SOE Report, 50 percent (22 SOEs) and 63 percent (10 JVCs) reported losses. Again, of the 56 OSEs covered, 34 percent (representing 19 OSEs) posted deficits. This is not an impressive result from our state businesses considering the time we find ourselves.

It is therefore very welcoming that the Finance Ministry is coming up with a financing policy to control the extent to which government will provide financial cushioning to these agencies whose nonperformance continue to affect the nation’s scarce revenue. According to the sector minister, the said the policy will be anchored on three principles including the requirement for specified entities to operate on the strength of their balance sheets. The other two pillars are the capitalisation of new or existing specified entities to be funded only through the sale of nonstrategic state assets, and not drawn from tax revenue or added

to the public debt; and clear distinction of the costs of SOEs' and JVCs' purely commercial activities from those incurred in exercising their public policy obligations. “Fundamentally, we are hopeful that these corporate governance initiatives will translate into improvement in these entities' financial performance and governance,” Ken Ofori-Atta said. With prudent financing direction and the task to operate on the strength of their balance sheet, the SOEs will be put on their toes when they are aware that there will be no manna from the sky. We can’t continue to finance non-performing institutions.

Gov’t to institute financing policy for state-owned firms -Fin. Min Continued from cover

Your subscription -- along with the support of businesses that advertise in Business24 -- makes an investment in journalism that is essential to keep the business community in Ghana well-informed. We value your support and loyalty. Contact Email: editor@business24.com.gh Newsroom: 030 296 5315 Advertising / Sales: +233 24 212 2742

three principles including the requirement for specified entities to operate on the strength of their balance sheets. The other two pillars are the capitalisation of new or existing specified entities to be funded only through the sale of nonstrategic state assets, and not drawn from tax revenue or added to the public debt; and clear distinction of the costs of SOEs' and JVCs' purely commercial activities from those incurred in exercising their public policy obligations. He adds that the latter will be fully reimbursed in line with the dictates of the State Ownership Policy, subject to Cabinet's approval. Government, he says is developing the comprehensive state ownership policy to improve the general framework for managing the state's interests in specified entities.

“In this regard, I must acknowledge the role of the Minister for Public Enterprises in leading the Task Force to finalize the policy, which is currently before Cabinet for consideration and approval. The governing bodies of specified entities will be required to comply with the applicable guidelines and regulations of the state ownership policy. The government also expects that governing bodies will annually report on their compliance with this Policy to SIGA.” To help improve the governance of specified entities, the finance minister indicated that the corporate governance action plans piloted in five SOEs have achieved an implementation rate of 90.4 percent as of the end of December 2021. For reference, these SOEs are the Electricity Company of Ghana (ECG), Ghana National Petroleum Corporation (GNPC), Ghana Water Company Limited (GWCL),

TDC Development Company, and Volta River Authority (VRA), he noted. Similarly, government, with the World Bank's support, has concluded corporate governance reviews and developed corporate governance action plans for eight (8) additional entities, namely Bank of Ghana (BoG), COCOBOD, Graphic Communications Group, Ghana Ports and Harbours Authority (GPHA), National Insurance Commission (NIC), National Pensions Regulatory Authority (NPRA), Securities and Exchange Commission (SEC) and SSNIT. “Fundamentally, we are hopeful that these corporate governance initiatives will translate into improvement in these entities' financial performance and governance,” the finance minister indicated. An analysis of the performance of state-owned enterprises for the 2020 operational year largely trended downwards. SOEs consistently posted aggregate net losses from FY2015 (G.H. ¢2.16 billion) to FY2020 (G.H. ¢5.34 billion), a compounded annual growth rate of 16.32 percent. Of the 44 SOEs and 16 JVCs covered in the draft 2020 SOE Report, 50 percent (22 SOEs) and 63 percent (10 JVCs) reported losses. Again, of the 56 OSEs covered, 34 percent (representing 19 OSEs) posted deficits.

News

MONDAY FEBRUARY 7, 2022

AGRA urges concerted efforts on food security Continued from cover Diagnostic Analytics in Accra. “During the last 2021 UN Food Systems Summit His Excellency, the President of the Republic of Ghana, Nana Addo Dankwa AkufoAddo, recognized that access to safe, nutritious and affordable diets is central to the health and well-being of the population, and critical for combating hunger, malnutrition, morbidity, and poverty in Ghana. This vision is shared by the President of the Alliance for a Green Revolution in Africa Dr. Agnes Kalibata” Vice President of the State and Policy Capability, Dr. Apollos Nwafor, emphasised at the meeting. Highlighting the long term and profound economic damage the covid19 pandemic is having in low income countries where poverty and hunger are on the rise, Mr. Patrick Robert Ankobiah, Chief Director the Ministry of Food and Agriculture, said the world’s food systems including that of Ghana are at the crossroads. “These systems have been unable to provide adequate food for millions of people resulting in widespread hunger in many

countries. The food and nutrition security situation in sub-Saharan Africa is dire with serious consequences for public health and sustainable development. Projections show that the world is not on track to achieve SDG 2 - Zero Hunger by 2030 and, despite some modest progress most indicators are also not on track to meet the Global Nutrition Targets by 2025,” he said. The meeting was on the theme: “Validation of Ghana Food

System Dialogues and Landscape Diagnostic Analytics”. Ghana is one of three African countries including Malawi and Rwanda selected for the United Nations (UN) Food System Summit Dialogues to pilot the Food System Transformative Integrated Policy (FS-TIP) programme after demonstrating courageous leadership in the development and implementation of an ambitious food system policy agenda. Ghana’s national FSSD process

began with the establishment of a national FSSD secretariat which instituted coordinating mechanisms to steer the dialogue process; after months of engagement between the various agencies and stakeholders, the workshop was for consultants to update stakeholders on the progress of the project. A consultant and convener for food systems summit in Ghana, Prof. Amos Laar, explained that their work centered on finding new solutions to the challenges identified at the global and country levels in order to attain sustainable food systems. “The dialogues helped in the raising of awareness, elevation of public discussions, development of principles that have guided governments and other stakeholders about how to reform food systems to achieve the SDGs,” he added. The Food Systems Summit Dialogues (FSSDs) brought together diverse groups of stakeholders who collaborated, deliberated, debated ideas and solutions and took actions geared towards attaining a better and quality food systems in Ghana.

NSS saved nation GH¢112m in blocked payments to fraudsters – NSS boss Continued from cover Dr. Mahamudu Bawumia, on Monday, Mr. Assibey Antwi said introduction of the Metric app, which combines facial recognition technology and identity card checks for verification and validation and has so far blocked the enrolment of 14,027 potential

fraudsters onto the Scheme, saving the nation the colossal amount of money. “We had them on lists as potential Service Personnel but they run away and couldn’t register because the system raised red flags and weeded them out, so they couldn’t register. Without this use of technology,

we would have paid Ghs94m, and if they had gone to the private sector, GH¢112m. All of that money would have gone down the drain to ghosts. Digitalization of our operations, started by my predecessor and continued since I came into office, has indeed saved Ghana a lot of money,” he emphasized. Taking Vice President Bawumia round, Mr Assibey Antwi said the entire National Service process had been digitized, making it easier and more user friendly. As well, it has made it possible to introduce new modules based on the specializations of the students, such as building technology, agriculture and accounting, and the fostering of relationships with relevant institutions. “Over 40,000 Accounting students are produced every year. In order to make proper use of their talents and help both the government and private sector, we are holding discussions with the Ghana Revenue Authority to partner us to provide basic book keeping services to Government and the private sector,” he revealed, adding that similar

discussions were ongoing with Eximbank to provide start-up capital and tools for those trained in Agriculture after internship at the Dawhenya Greenhouse facility. As well, Personnel with a background in Information and Communications Technology (ICT) are receiving training in 24 locations across the country on developing and growing a business in the ICT sector. Commending the leadership of the Scheme for their “out of the box thinking”, Vice President Bawumia expressed delight that the fruits of digitalization, designed to formalize the economy and fight corruption, are beginning to manifest widely. “The use of technology in just one institution has saved us Ghs112m. Imagine how much would be saved if 10 institutions, or the entire public sector, infused digitalization in their operations, especially in the verification of workers before the payment of compensation,” Dr Bawumia stated adding, “I am hearing exciting things about your operations. Keep it up. You are doing a good job.”

MONDAY FEBRUARY 7, 2022

News

MONDAY FEBRUARY 7, 2022

Ghana yet to attain 1kg per capita consumption of cocoa – Minister

hana is yet to attain one kilogramme (kg) per capital consumption of cocoa, Mr Kojo Oppong Nkrumah, Minister of Information, has observed. He said though Ghana had made significant strides in local consumption of cocoa over the years, the country had just moved a bit above 0.55kg per capita consumption for the medium term. “…We are on our journey to move towards the target of 1kg per capita consumption of cocoa for the medium term here in Ghana. Despite the relative improvement in local cocoa consumption, we just moved up a little beyond our 0.55kg per capita cocoa consumption…” Germany is said to be the biggest chocolate producer in the European Union with per capita consumption of cocoa around 2.9 kilogrammes in 2018/19. Speaking at the launch of the 2022 National Chocolate Week celebration under the theme: “Eat Chocolate, Stay Healthy, Grow Ghana,” at the Tetteh Quarshie

Cocoa Farm, the Minister said the weeklong celebration would promote local consumption of “chocolate and other cocoa products.” Mr Oppong Nkrumah said the Government deemed it necessary to sustain the national cocoa products consumption campaign, saying they provided health benefits for the people and

created economic values. Last year, 2021, Ghana produced about a million metric tons of cocoa, however, there were reports of intermittent shortages of chocolate products on the local market, that, he said was an opportunity for the local business community to explore. The Minister called on the Traditional Authority of Akuapem

Mampong and stakeholders in the cocoa industry to commence deliberations on a yearly “Tetteh Quarshie National Cocoa Festival” to promote local consumption of cocoa products. The festival would be in honour of Tetteh Quarshie and celebrated at Akuapem Mampong, as Ghana’s cocoa history. Osabarima Kwame Otu Dartey III, Chief of Akuapem Mampong, appealed to chocolate producers to make the products affordable to boost consumption. He urged the Government to establish Cocoa Museum to house the first trees brought by Tetteh Quarshie. The National Cocoa Week celebration, schedule for 12 to 22, February 2022, is under the auspices of the Ghana Tourism Authority with support from COCOBOD. Some activities planned to mark the celebration are health walks, floats, and donations. Source: GNA

Vodafone Foundation supports Ghana with COVID-19 storage equipment worth US$1M

odafone Ghana, through the Vodafone Foundation, has made a significant contribution to improving Ghana’s health infrastructure and fight against the pandemic with the presentation of 459 ‘'coldchain units," which include 275 vaccine freezers, 184 ice-lined combination refrigerators and 2 walk-in cold rooms to the Ministry of Health. The equipment is valued at US $1 million. The donation will boost storage of the COVID-19 vaccines, which has been identified as a challenge for various countries on the African continent. A recent survey of 34 African countries by the African regional office of the World Health Organization (WHO) revealed that, in 31% of countries, more than 50% of districts have issues with cold-chain capacity that are significantly prohibitive for vaccine rollout. Cold-chain management is a crucial component of ensuring a safe and effective inoculation drive. All vaccines that are procured require uninterrupted refrigeration from dock to doctor. This means that the vaccines require optimum refrigeration from the point at which they arrive in the destination country to when

they are ready to be injected into the arm of a patient. If the cold chain is broken at any point from arrival to administration, the vaccines become ineffective and potentially unsafe. The Ghana Health Service (GHS) played a significant role in the process by helping Vodafone Foundation identify what equipment is needed to manage logistics and vaccine rollout. Presenting the cold-chain equipment, Patricia Obo-Nai, the Chief Executive Officer of Vodafone Ghana said, "We are delighted to support the Ministry of Health with ultramodern cold storage equipment. This will certainly help improve the safe transportation, storage, and delivery of the COVID-19 vaccines across the country. Indeed, it is even more gratifying that this equipment will also assist the government beyond the COVID-19 pandemic with the storage and distribution of other life-saving vaccines, including those used for child immunisations." The Minister of Health, Hon. Kwaku Agyeman-Manu, who received the cold chain equipment, expressed his appreciation to Vodafone Ghana.

"On behalf of my ministry, I express my profound gratitude to Vodafone Ghana and Vodafone Foundation for this great gesture. The cold-chain equipment received today will contribute significantly to the overall immunisation system, including receiving and storing from the national level to the sub-district level of the COVID-19 vaccination programme, " he said. Commenting on the initiative, Andrew Dunnett, Group Director, Sustainable Development Goals, Sustainable Business and Foundation, said: "This equipment will help ensure that vaccines are safely transported, stored and used both in response to COVID-19 - the largest health intervention in the continent’s history - and for future vaccination programmes. This donation builds upon the €150m (1.05bn Ghanaian Cedis) in grants and inkind contributions that Vodafone Group and the Vodafone

Foundation have already made in response to the pandemic. " Vodafone Foundation and Vodacom Group donated €4.2 million (GHS 29 million) to ensure that COVID-19 vaccines - and other lifesaving medicines - will be securely delivered to Ghana and several other sub-Saharan African countries. Ghana is the first receiver of the cold-chain equipment, out of a total of 690 units, which were also assigned to the Democratic Republic of Congo, Mozambique and Tanzania. Vodacom Group has also donated 2,197 cold chain equipment in South Africa. Procurement of the lifesaving equipment was managed through the African Vaccine Acquisition Task Team (AVATT), established by the African Union as a component in support of the Africa Vaccine Strategy. The procurement of the units for Ghana was facilitated by UNICEF.

MONDAY FEBRUARY 7, 2022

Technology

MONDAY FEBRUARY 7, 2022

Digital representation matters—Fostering Internet inclusion among PWDs

n today's world, the internet has paved the way for the advancement of humanity into a new era. From Polokwane to Accra to Nairobi and across the continent of Africa, easy and meaningful access to the internet is a driver for economic growth; just as roads and railways provided the arteries for commerce in the Industrial Revolution. Today's internet infrastructure is the circulatory system on which much of modern life depends. The covid-19 pandemic has presented us with new ways of doing things where most activities are done online. Activities such as e-learning, e-commerce are at the heart of the internet. We have moved from brick-and-mortar to click and order. People with disabilities (PWDs) are a group of people with special needs and are faced daily with myriad challenges that surpass different aspects of their lives. Situating the conversation in Ghana and Africa by extension. Evidence from the Ghana Statistical Service (GSS) suggests PWDs account for 3.7 percent of the population. According to Statista, the prevalence of disability in low -and - middleincome countries (LMIC) is higher than in high-income countries, and the data shows close to 400 million people live with a form of disability in Africa. Moreover, in Ghana, internet penetration has significantly improved from 30.8 percent in 2018 to 50 percent in 2021. However, the population of PWDs in Ghana is high as anecdotal evidence suggests, these people are still underrepresented in technology

jobs, active participation in the civic engagement of the internet, and internet literacy. People with disability are often faced with barriers to education and training, stereotyping— other people presume they have a lower quality of life. All these factors limit their job opportunities leading to poverty, social exclusion, and restricted access to basic social amenities. PWD's limitations to the internet are mostly shaped by the high cost of broadband internet and adoption of ICT tools due to lowincome levels among PWDs and lack of digital skills to scale up, reskill and upskill. In 2016, the United Nations identified accessibility of the internet as a basic human right. It clearly explains every individual needs information for daily decision making and the internet is one pivotal tool that promotes self-development and active participation in a democratic society. Yet misconceptions, stereotypes, and discrimination continue to be a barrier that limits PWDs from realizing their potential. With increasing technological innovations and digitization drive rolled out by the government: • What does the digitization drive mean for people with disabilities? • How do people with disabilities access the internet and leverage that for sustainable jobs? • What is the state of our technological internet services, is it inclusive for easy accessibility by PWDs? Way forward The Sustainable Development Goal (SDG) 8 seeks to promote

sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all. In line with this, it is necessary to design educative and training programs for PWDs which are in tune or in alignment with the ever-changing aspirations, commitments, wishes, longings, exigencies, and demands of education curricula and frameworks that will enable them to acquaint themselves with modern trends of technology. Effective digital skills which consider fully equipping the individual holistically are crucial in equipping PWDs to improve on their standard of living and bring out innovation and ingenuity. In the past, training in Information Communication Technology (ICT), internet literacy, and capacity building by governments have often been without the needed spark as its sustainability has suffered hiccups due to administrative changes over successive periods. The Institute of ICT Professionals Ghana since its inception in 2017 has provided platforms for training and mentoring, which seek to fully embrace disability inclusion at every level and be part of the solution. More corporate bodies, institutions should concertedly make efforts to ensure PWDs are digitally included. Furthermore, it is morally imperative to be more inclusive digitally, as the internet is for everyone and should not be the preserve of the privileged and selected few. Thus, software developers and content writers must design digital experiences tailored to meet the needs of people with physical disabilities, speech difficulties,

hearing impairments, cognitive impairments, and blindness. Government departments and agencies must develop, design, and curate websites with a wider range of experiences that comply with international web accessibility best standards, ensuring these websites are easily accessible by PWDs. As the pandemic continues to drag, it has revealed a consequential digital divide and online safety for PWDs. Digital platforms have become commonplace, and as such, best policies and practices must be incorporated. The policies should be inclusive and accommodative of the digital needs of PWDs in Ghana. Adjusting to a postcovid-19 world presents an opportunity for governments to reassess policies to increase the inclusion of persons with disabilities. In framing and formulation of such policies, legislations, and regulations, consulting with people with disabilities is critical, as their needs are heard. To conclude, Ghana cannot be left behind in the comity of nations, especially as the digital economy is set to replace the traditional economy. Leveraging on the internet is a driver for economic growth and development, bridging the already inequality in our society. Internet inclusion matters. Digital representation for all is key for national development. Author: Osei Manu Kagyah (Member, Institute for ICT Professionals Ghana) For comments, contact Kagyahosei@gmail.com | 0247103939

News

MONDAY FEBRUARY 7, 2022

Dr. Bawumia launches new travel card for public officials

he Vice President, Dr Mahamudu Bawumia, has launched a new digitalization measure to end the era of cash for travel in the public sector, with the aim of bringing further transparency and accountability in the use of public funds. Known as the e-Travel Card Project, the Card is designed to facilitate the cashless disbursement of travel allowance and other payments for local and foreign trips by government and other public officials. Dr Bawumia performed the launch at the closing ceremony of the Annual Conference of the Controller and Accountant General’s Department in Cape Coast on Friday, February 4, 2022. It was under the theme ‘The role of Controller and Accountant General’s Department in advancing the Digitalization Agenda of Ghana.’ According to officials of the Controller and Accountant General’s department, the eTravel Card project automates and integrates all the processes from the point of initiation of card issuance requests, funding request from MDAs/Entities, through approvals and disbursement to the issue of the cards. It further provides expenditure tracking and retirement of accountable imprest. The Card is expected to deliver a number of benefits, including

elimination of the risk of carrying cash; transparency and ease of accountability; timely retirement of accountable Imprest; and improved monitoring and controls of budgetary allocations for official travels to avoid over spending. “I am informed that the eTravel Card portal is to replace all manual systems of managing imprest in the Public Service by delivering personalised cards to every Government Office and employee. “This initiative is designed to further consolidate the digitalisation agenda of His Excellency, President Nana-Addo Dankwa Akufo-Addo which has already delivered a number of successful projects including the Digital Address System, the Ghana Card Project, Mobile Money Interoperability, among others. From the Birth and Death Registry to NHIS, DVLA, Insurance and Passport, these projects are already positively impacting the

lives of Ghanaians. “Our Digitalisation agenda is not only focused on transforming how citizens conduct business with the government sector but also how the public sector in reverse conducts business with enterprises. The e-Travel Card Project seeks to end the era of cash for travel in the public sector.” Digitalization and Efficiency While commending the CAGD for playing a very crucial role in the management of public finances and the accountability process, Vice President Bawumia emphasized the link between enhanced digitalization and transparency, and urged the Government’s chief pay master to continue with efforts to link public sector wages to the GhanaCard, which is increasingly becoming the one true source of proof. Citing the management of the National Service Scheme, whose adoption of digitalization processes led to the weeding

out of over 14,000 potential fraudsters and saved the State up to Ghs112m, Vice President Bawumia urged other public sector entities to adopt similar measures to fish out those who have been robbing the State. Government, he said, is committed to cracking down on financial malpractices, wasteful public spending, bottlenecks in the management of public expenditure and the wage bill, and needs all stakeholders to play their part to make it a reality. “Digitalization in the accounting field is about incorporating interactive technologies and transforming accounting processes from manual to digital to achieve efficiency, transparency and savings to the public purse. “I am aware that the Controller and Accountant-General’s Department is already taking steps towards the electronic enhancement of its business processes. Key measures include the continuous use of the Ghana Integrated Financial Management Information System (GIFMIS), the upgrading of the Third Party Referencing System (TPRS), the Electronic Salary Payment Voucher (ESPV) system and the E-Payslip system among others. “I must say that these initiatives are commendable, are in the right direction and are beginning to manifest in many ways.”

Ofori-Atta courts public support for resilient economy Continued from cover all dream of. He said this, when he addressed a cross-section of Ghanaians across the political divide, at a Government Town Hall Meeting held at the Sekondi Youth Centre in the Western Region. The town hall meeting was a second in a series of nationwide public engagement rolled out by government with the aim to generate support for the Electronic Transaction Levy currently before Parliament. According to the Minister, it was important for everybody as a citizen to have “a part in this enterprise of a Ghana that is confident, prosperous and leading the nation states of the world.” Touching on the need for Ghanaians to support the E-levy, he disclosed that, government, prior to the Covid-19 pandemic had set all the economic

indicators right for accelerated development and structural transformation. “We went through 2017 to 2019 with incredibly stellar results on what we as a country achieved, moving from 3.4% of growth to an average of 7%; reducing our budget deficit from 6.5% into about 5%; making sure our currency did not depreciate as it used to be and its now quite stable; and also have the necessary foreign exchange cover to make sure that we are able to support our currency and our imports” Mr. Ofori-Atta stated. He continued that “during this period, we did the impossible; we spent over GHS40 billion on education, GHc14 billion on healthcare, GHS14.9 billion on enhancing internal security, GHS18 billion on flagship project and it just continues as of the things we were able to do with money that the NDC were sure we would never be able to get”.

Mr. Ofori-Atta added that, due to prudent economic policies of the government, about 1.26 million people had benefitted from free SHS; 3.45 million covered by school feeding program; and 100,000 young persons employed under NABCO, the largest in our history; and over 344 households given lifelines under the LEAP program. The Minister for Finance noted that, because of government’s timely interventions and programmes during the Covid-19 pandemic which included supporting households with free water, food, paying salaries of all government workers during the lockdown, among others, the economy was faced with its most testing time. “Given our elevated public debt stock due to the pandemic, our path forward in economic management has to prioritize domestic revenue mobilisation rather than borrowing to fund

the budget,” he said. Mr. Ofori-Atta disclosed that, the country needed to create its own viable economy, build infrastructure to become a regional infrastructural and investment hub which would bring opportunities and prosperity for all Ghanaians. He touched on burden sharing where all Ghanaians both in the formal and informal sector could contribute to generate the needed domestic revenue for development and Asked for a dispassionate moment to build consensus around the E-levy.

News

MONDAY FEBRUARY 7, 2022

“Africa cannot outsource its healthcare security to the benevolence of others”

frican Development Bank Group President Dr Akinwumi Adesina has said that the most important lesson of the Covid-19 pandemic for Africa is the need to build a defense mechanism against external shocks, especially in healthcare and financial security. “Investing in health is investing in national security,” Adesina told African leaders on Saturday, at the opening of the 35th African Union Assembly in the Ethiopian capital. “Africa cannot afford to outsource the healthcare security of its 1.4 billion citizens to the benevolence of others.” The Bank chief said the continent needed $484 billion over the next three years to address the socio-economic impacts of the Covid-19 pandemic and support economic recovery. Adesina outlined three strategic priorities for an African healthcare defense system: building quality healthcare infrastructure; developing the continent’s pharmaceutical industry; and increasing the capacity of vaccine manufacturing. He added that the African Development Bank planned to invest $3 billion to support Africa’s pharmaceutical and vaccine manufacturing capacity. Speaking about other critical areas for the continent, such as managing debt, Adesina said: “Africa’s public debt, currently estimated at $546 billion, represents one-quarter of the continent’s GDP and is higher

than the combined total annual government revenues of $501 billion.” Adesina said the African Development Fund , the Bank Group’s concessional lending arm, had supported low-income countries with $8.5 billion over the last five years. Calling on African Union leaders to strongly support the Fund’s 16th replenishment in 2022, Adesina advised that a funding restructure of the African Development Fund would allow the Fund to go to market, leverage its $25 billion in equity, and raise an additional $33 billion in financing for low-income countries. The Bank Group chief reminded African leaders that they had asked for re-allocated IMF Special Drawing Rights (SDRs) to be channeled through the African Development Bank, a prescribed holder of SDRs. “Passing the re-allocated SDRs for Africa through the African Development Bank will serve Africa very well, provide financial leverage, and help recapitalize

other African financial institutions, many of which the Bank helped to set up,” he said. Adesina repeated his earlier calls for an African Financial Stability Mechanism to provide liquidity buffers to protect the continent against financial and economic shocks. He said that while other continents have such mechanisms, Africa was the only one that does not. He explained that this led to widespread regional spill-over contagion effects and instability from Covid-19-induced financial shocks. “African economies must be protected,” he stressed. Addressing the summit plenary earlier, African Union Commission Chairperson Moussa Faki Mahamat said the Covid-19 pandemic had highlighted Africa’s unpreparedness for external shocks like new viruses. He said Africa’s 2.1% retraction in growth had set it back and threatened the achievement of the African Union’s Agenda 2063. Various heads of state and government spoke of the socioeconomic impact of Covid-19

on their countries, and steps they were taking to tackle the virus and other challenges. Host country Ethiopia, which is dealing with several challenges, has made substantial investments in wheat production and is on track to reach its goal of planting 20 billion trees by 2022. Prime Minister Abiy Ahmed said the initiative will mitigate the impacts of climate change. The African Union’s 2022 Year of Nutrition focuses on strengthening resilience in nutrition and food security on the African continent. With the International Fund for Agricultural Development and the African Union Commission, the African Development Bank launched the Facility for African Food Security and Nutrition at the United Nations Food Systems Summit in 2021. Adesina said the facility “will mobilize $1 billion to support the delivery of climate resilient technologies to 40 million farmers and produce 100 million metric tons of food to feed 200 million people.” He added, “this will reduce the number of people facing hunger in Africa by 80%.” Adesina called for accelerated action to advance Africa’s rapid development and sounded a note of optimism. “With your bold and visionary leadership, a new Africa is emerging. Just as the eagle soars above the storms, so will Africa soar and achieve its destiny. Africa is destined for greatness,” he insisted.

‘Waiver on sulphur specification in automotive fuels produced by local refineries’

he National Petroleum Authority (NPA) has said per the ECOWAS directive on Harmonized Specification for Automotive Fuels, an interim waiver effective January and ending on 31st December 2024 has been granted to local refineries licensed by the authority to produce and supply diesel and petrol containing sulphur levels not exceeding 1,500 mg/kg (ppm) to the general public. The authority said without prejudice to the interim waiver granted, diesel and petrol imported into the country shall continue to comply with the sulphur requirements stipulated at maximum 50 mg/kg (ppm) as contained in the Ecowas Harmonized Specifications for Automotive Fuels.

it said the implementation of the interim wavier is to ensure that local refineries remain operational, whilst they introduce measures to meet the sulphur requirements stipulated in the Ecowas Harmonized Specifications for Automotive Fuels. In view of the introduction of this interim waiver, diesel and petrol produced by local refineries shall be allowed for sale and purchase at retail outlets and may be comingled with imported products for sale to the general public. However, it said the permissible sulphur levels of diesel and petrol to be sold to the general public whether comingled or not shall at all times not exceed 1,500 mg/kg (ppm) within the interim waiver

period. “The application of this interim waiver to local refineries shall not result in any price differentials in the sale and purchase of diesel and regular petrol at the retail outlets with respect to their permissible sulphur content. The general public is hereby assured that notwithstanding the implementation of this interim waiver for the local refineries, the NPA shall continue to ensure strict compliance with approved sulphur levels in the Petroleum downstream industry,” it added. The authority said where fuel from a retail outlet exceeds the sulphur content of 50 mg/ kg (ppm), the dealer and Oil Marketing Company (OMC) shall produce documentation evincing the consignment was procured

from a local refinery. “Failure to produce the required documentation may result in the application of pecuniary penalties in an amount of GHS30,000.00 on the OMC and/or Dealer,” it said.

News

MONDAY FEBRUARY 7, 2022

World Bank representative to engage gov’t on economy, Covid-19

r Ousmane Diagana, the World Bank Regional Vice President for Western and Central Africa region, will on Monday, February 6, be in Ghana for a three-day working visit. Mr Diagana will pay a courtesy call on President Nana Addo Dankwa Akufo-Addo and hold a high-level discussion with key government officials on critical issues relating to the

macro-economy, energy sector, COVID-19 pandemic, and vaccine rollout. The Vice President, Dr Mahamudu Bawumia and the Minister of Finance, Mr Ken Ofori-Atta will be part of the engagement. The visit, which is the first since his appointment in July 2020, will afford the Regional Vice President the opportunity to also monitor some World Bank funded

projects, including the Ghana Tech Hub and Ghana Innovation Hub at the Accra Digital Centre. The visit is taking place days after the World Bank Country Director, Mr Pierre Frank Laporte, indicated that the Country’s decision to seek financial support from a fellow Bretton Woods institution, International Monetary Fund (IMF) would not solve its economic challenges in the long term.

At a media engagement, he said the support of IMF would, however, help the Country renegotiate some of its debts, provide economic framework to shore up reserves and provide more loans. The World Bank is an international financial institution that provides loans and grants to the governments of low- and middle-income countries for the purpose of pursuing capital projects. It has been operational in Ghana since 1957 with active portfolios worth $2.9 billion (about $9 per person in the US) across 25 active projects. Portfolios are spread across several sectors, with 18 per cent in finance and competitiveness, Health, 13 per cent in Nutrition & Population, 13 per cent in social protection & jobs and 10 per cent in urban resilience and land. With debt to Gross Domestic Product ratio set at 78.4 per cent as of November 2021, the government has announced some expenditure cut measures while working to introduce an electronic transaction levy to shore up revenue and improve its debt situation.

Huawei ranks 9th on Brand Finance's 'World's Top 10 Most Valuable Brands 2022'

rand Finance, a leading brand valuation and strategy consultancy, has named Huawei one of the top 10 most valuable brands for 2022 in its recently published“Brand Finance Global 500” 2022 report. The report showed staggering year-on-year growth of 29 percent in Huawei's brand value to $71.2bn, allowing the company to rise more than twofold from its previous position of 21 in Brand Finance's 500 ranking last year, to 9th this year. Every year, Brand Finance puts 5,000 of the biggest brands to the test, and publishes nearly 100 reports, ranking brands across all sectors and countries. The world's top 500 most valuable and strongest brands are included in the annual Brand Finance Global 500 ranking – now in its 16th year. As a whole, the tech sector is once again revealed to be the most valuable industry, with a cumulative brand value of close to $1.3 trillion in the Brand Finance Global 500 rankings. Huawei managed to reclaim its

place amongst the top 10 brands, despite its smartphone business suffering heavily from multiple US sanctions. Brand Finance attributes Huawei's brand growth to its commitment to innovation, by heavily investing in domestic technology companies and R&D, as well as turning its focus to the electric car business while continuing to strengthen its cloud

services. Huawei continues to provide various innovative products to global and regional consumers and has started the year by launching its flagship smartphones in the Huawei P50 series. The Huawei P50 Pro, which boasts a Dual-Matrix Camera system delivering imagery with extreme clarity, brings a new generation of imaging technology

that breaks physical boundaries. The Huawei P50 Pocket opens a new chapter in the history of foldable phones. The phone folds seamlessly into an ultraslim lightweight body device and boasts a multi-dimensional lifting designing, allowing the device to be even slimmer and produce a smoother screen when unfolded. Source: MENAFN

Agribusiness

MONDAY FEBRUARY 7, 2022

FAO unveils improved method of measuring rural poverty

he majority of the world’s poor live in rural areas, but reliable and harmonised information on their numbers and conditions is difficult to come by. To help meet this deficiency in the fight against global hunger, the Food and Agriculture Organization of the United Nations (FAO) has published a report in collaboration with the Oxford Poverty and Human Development Initiative (OPHI), which introduces an innovative Rural Multidimensional Poverty Index (R-MPI). The R-MPI broadens existing methods for measuring rural poverty by taking a closer look at rural people’s capabilities: food security, the quality of their nutrition; their education, and living standards. Moreover, FAO and OPHI added two key aspects affecting the life of rural dwellers in particular: access (or the lack thereof ) to adequate agricultural assets and exposure to environmental and other risks and social protection. “Despite the fact that a range of poverty measures already exist and are commonly used, harmonised information on rural poverty, which could inform a sound and homogeneous measurement, is less readily available. The R-MPI includes innovative indicators on the adequacy of agricultural assets ownership, rural social protection and risk exposure. In the application proposed in the report, the R-MPI makes use of innovations in the risk dimension, combining household survey with geospatial data,” FAO Chief Economist Maximo Torero Cullen

said at the report’s launch. The R-MPI builds on the notion that a single dimension, such as household income, does not accurately capture poverty in rural areas. It is now widely recognised that hardship means much more than an empty bank account. That notion is reflected in the Global Multidimensional Poverty Index (MPI), which was launched in 2010 by the United Nations Development Programme and OPHI and covered 109 countries and 5.9 billion people in 2021. The R-MPI, which expands the scope of the global MPI, also includes an innovative combination of geospatial and survey data that quantifies rural dwellers’ risks of exposure to drought, floods or heat waves. “The launch of this innovative Rural MPI is an important first step to shape the data environment and the discussion on how to continue to advance the understanding of rural poverty with the objective of ending it in all its forms and dimensions,” said Sabina Alkire, Director of OPHI. Useful findings The usefulness of this new tool is illustrated in the joint FAOOPHI report, which tested the index using recent household surveys in Ethiopia, Malawi, the Niger and Nigeria. The report shows how the R-MPI captures additional and different information compared to other measures – both monetary measures and multidimensional measures – that do not include rural specificities.

The dimensions included were proven to be efficient from a statistical standpoint. The overlap between monetary and non-monetary deprivations is significant. However, the R-MPI captures more. In Malawi, for instance, as much as 14 percent of the rural poor identified by the R-MPI were not identified as poor by the monetary metric. The R-MPI was also tested in the field, specifically in 64 rural areas of Malawi. Community members were asked to review the dimensions included in the R-MPI, based on their life experience, and define, in their own words, rural hardship and poverty. While most dimensions turned out to be considered crucial, others – such as state of mind or physical appearance – also surfaced. While not all of these can easily be elicited in large-scale surveys, important

lessons were learned about the limitation of money metrics and the importance of tailoring the measurement to rural contexts. All this is not just about producing more data. A more precise identification of who the extreme poor are, where they live, and what specific constraints prevent them from escaping poverty in rural areas, can play a crucial role in shaping more accurate policies to tackle rural poverty and hunger. FAO is supporting countries in designing and enacting policies that address the condition of poor and small-scale farmers, enhancing their livelihoods and improving their resilience and ability to escape extreme poverty. The R-MPI can help as a guiding tool for policy makers, and as a monitoring tool for projects and programs that seek to tackle rural poverty.

News

MONDAY FEBRUARY 7, 2022

African Leaders for Nutrition lauded by AU during declaration of 2022 as “African Union Year of Nutrition”

he African Leaders for Nutrition initiative, housed at the African Development Bank, has been honored by the African Union for progress made toward advancing investments in nutrition across the continent. At the conclusion of the 35th Ordinary Session of the African Union Assembly on Sunday, an African Union summary decision commended “the African Leaders for Nutrition initiative in sustaining nutrition advocacy in the effort to ensure member states commit adequate financial resources to nutrition interventions.” The African Leaders for Nutrition initiative is a platform for high-level political engagement to advance nutrition in Africa, led by current and former heads of state, finance ministers and eminent leaders. The decision comes as the Assembly Session declared 2022 the “African Union Year of Nutrition,” and as Bank President Dr. Akinwumi A. Adesina stressed the importance of advancing nutrition during his address to assembled heads of state. “The recognition of the African Leaders for Nutrition’s efforts comes as the initiative leverages visibility the African Union Year of Nutrition declaration brings to the fight to end malnutrition and

increase food security in Africa,” said Bank Vice President Dr. Beth Dunford, who led a delegation from the Bank’s Agriculture, Human and Social Development Complex to the Assembly, held in Addis Ababa on 5 and 6 February. African Leaders for Nutrition is advocating three goals for the Year of Nutrition, starting with securing investments to implement a nutrition action plan that reduces malnutrition across the continent. The second goal is to identify costeffective interventions worth implementing. The third, is to promote accountability as African Union member states aim to meet World Health Assembly and United Nations Sustainable Development Goal nutrition targets.

The African Union Year of Nutrition theme focuses on strengthening the continent’s nutritional resilience and food security, and will aim to strengthen core systems such as the agri-food, health, and social protection systems, as well as aim to accelerate human, social, and economic capital development in Africa. The African Leaders for Nutrition will support the African Union Commission and the government of Cote d’Ivoire to bring the initiative’s “nutrition champions” together to devise strategies to ensure proper implementation of the declaration. The initiative will also support the African Union Commission on advocacy with African leaders to increase

Re-imagining sales in the 'New Normal’ By Shaibu Hakeem, Head, Sales, Stanbic Bank Ghana

OVID-19 has taken a drastic toll on everything, including human lives. The advent of the pandemic has changed how we view our homes, workplaces, communities and even the world. It has undoubtedly changed the way we used to freely mingle in associating with each other and interact with our environment. The business environment, with all its different aspects, has not been spared either. The requirement of social distancing has meant a reimagination of how our business is conducted, especially ones that rely primarily and heavily on face-to-face interactions such as sales. According to The Balance Small Business (2022), sales is the process of convincing someone to buy from your business. It often involves some level of interpersonal interaction that persuades a lead to become a customer. Most of the time, these leads have been driven to you via

marketing efforts. Since sales is an interactive process, no doubt, COVID-19 has, and will continue to change how we sell. The act of convincing in an interpersonal interaction, persuading leads and marketing efforts all need to continue for sales to thrive, and invariably for businesses to be sustained and grown. The advent of COVID-19, however, means that sales must be managed within the protocols and avoidance of exposure to the virus. This is necessary not only for the safety of the organization’s staff and the customers they serve, but also for the survival of the larger society. Thus, in the new normal, organizations that deploy technologies that allow them to discover, reach and keep in touch with customers and their needs will have the upper hand in sales. This is the era where the virtual approach will be most critical in customer interactions and sales. Organizations are left with no choice but to evolve their sales culture to leverage on technology.

Call Centers are a great way to reach your customers, and to be reached by customers. Since this is already being used by many organizations, it is an excellent idea to utilize what is already in place. However, it is important Call Centers are revitalized, traffic checked, and numbers beefed up. The Call Centre is also well positioned to be assigned other roles, such as the reactivation of dormant customers. A Call Center can also be used for strategic crossselling. Thus, in this new normal, it is time you tool or retool your Call Centre staff with sales skills to drive your numbers up. You can also reach customers on social media to present your products or services for sale. There are currently about 3.7 billion people on social media platforms worldwide. Here, you need to understand the demographics of your target customers for tailored messaging. The younger generations are tuned to more informal approaches while the opposite is true for the elderly. Social media reaches many

investment in carefully targeted interventions and help track progress with implementation. The initiative also plans to convene high-level consultative meetings with African country stakeholders about unlocking additional resources for investing in nutrition. African Leaders for Nutrition is also scheduled to endorse a mid-year review that will quantify progress in addressing the African Union Year of Nutrition declaration. Dr. Martin Fregene, Director of Agriculture and Agro-Industry at the African Development Bank, speaking on the sidelines of the 35th African Union Assembly said: “Advancing nutrition is weaved into the Bank’s Feed Africa strategy, extending across numerous Bank programs, such as our Technologies for African Agricultural Transformation flagship that is delivering climateadapted technologies to millions of African smallholder farmers, helping them produce more – and more nutritious – food.” An estimated 61.4 million children aged under five years in Africa are stunted, while 12.1 million are wasted, and 10.6 million children in are overweight. The African Union Year of Nutrition runs from February until the next annual Assembly. customers and prospective customers of varied tastes and expectations – all at the same time. It is thus important to vary your messaging accordingly to take advantage of this huge market. Live audio and video streaming platforms such Microsoft Teams, Google Meet and Zoom are effective ways of undertaking organization-to-organization sale pitches in these COVID-19 times. Sales video may also be prerecorded and delivered. Live stream, especially video calls, make it possible to draw a sales pitch very close to reality and can be very helpful in giving instant feedback to prospects who may be ready to buy at once. However it is done, sales streams and videos should be carefully prepared to be succinct and be able to cater for feedback and clarification loops. It is the new normal, and we need to be innovative in how we get our sales teams working well to produce the right deliverable for our businesses. It is possible, if we purpose ourselves as such and work out how to stay close to our potential customers safely to sell.. COVID-19 is real, stay safe!

Feature

MONDAY FEBRUARY 7, 2022

Plant liberation?

By Peter Singer

“

Every day, thousands of innocent plants are killed by vegetarians. Help end the violence. Eat meat.” These words, written last month by an Edinburgh butcher on a blackboard outside his shop and shared on a vegan Facebook group, led to a heated online discussion. Some condemned the butcher for seeking to blur an important line between beings capable of suffering and those that are not. Others took it as a joke, as the butcher said he had intended it. But jokes can make serious points. “How do you know that plants can’t feel pain?” I was often asked when I stopped eating meat. In 1975, in the first edition of Animal Liberation, I offered two distinct responses. First, I argued, we have three strong reasons for believing that many nonhuman animals, especially vertebrates, can feel pain: they have nervous systems similar to our own; when subjected to stimuli that cause pain to us, they react in ways similar to how we react when in pain; and a capacity to feel pain confers an obvious evolutionary advantage on beings able to move away from the source of the pain. None of these reasons applies to plants, I claimed, so the belief that they can feel pain is unjustified. My second response was that if plants could feel pain, even if they were as sensitive to it as

animals, it would still be better to eat plants. The inefficiency of meat production means that by eating it we would be responsible not only for the suffering of the animals bred and raised for that purpose but also for that of the vastly larger number of plants they eat. That second response clearly still stands. Estimates of the ratio of the food value of the plants we feed to animals to the food value of the edible meat produced range from 3:1 for chickens to 25:1 for beef cattle. I don’t know if anyone has ever tried to calculate how many plants a cow eats before being sent to market, but it must be a very large number. Increasing interest in plant sentience, however, has cast some doubt on my first response. Peter Wohlleben’s 2015 worldwide bestseller, The Hidden Life of Trees, sparked popular attention to the issue. Wohlleben, a German forester, writes that trees can love, fear, make plans, worry about future events, and scream when they are thirsty – claims that have been repudiated by many scientists, some of whom signed a petition with the heading, “Even in the forest, it’s facts we want instead of fairy tales.” When questioned, Wohlleben himself often backs away from his attributions of mental states to plants. That plants are sentient, in the literal meaning of the word – able to sense something – is obvious

from the fact that they grow toward sunlight. Some are also sensitive in other ways. As a child, I enjoyed touching the leaves of a Mimosa pudica, or “touch-menot” bush, that my father had planted in our garden, to see the leaves close in response. And the carnivorous Venus flytrap has sensitive hairs that trigger the trap when an insect touches them. But is there something that it is like to be a plant, in the sense that there is something that it is like to be a chicken, or a fish, or (possibly) a bee? Or is being a plant like being a rock – in other words, there is no subject of experience? In Animal Liberation, I argued that plants are like rocks, and not like chickens or fish. (I was agnostic about bees, though I have not been indifferent to the question). Isn’t it possible that my argument there – that we frequently underestimate the awareness, needs, and cognitive abilities of animals, especially those we want to use for our own ends – applies to plants, too? Consider the three reasons I gave for believing that animals can feel pain, which I claimed do not apply to plants. Both the fact that plants do not show pain behavior, and the apparent absence of an evolutionary advantage to consciousness for stationary organisms, could be met by the claim that they do respond to stresses, but on a much longer timescale than

animals. They may not have a central nervous system, nor the neurons that form the physical basis of consciousness in animals, but they have substances like dopamine and serotonin, which function as neurotransmitters in animals. There is still much that we have to learn about both plants and consciousness. At this stage of that learning process, it would be foolish to exclude the possibility that plants have some physical basis for consciousness that we do not know about. This does not vindicate the Scottish butcher’s justification for eating meat. Not only does the second of the responses I made in Animal Liberation still stand; we now know that eating plant-based foods will significantly reduce our contribution to climate change. But it is a reason for thinking about plants a little differently, keeping in mind the possibility that more may be going on than we are aware of, and acting accordingly by minimizing the harm we do to them, when the costs of changing our behavior are not significant. On a larger scale, of course, we also know that forests and other forms of vegetation are essential for preserving biodiversity, not only for ourselves but for other animals as well. Agata Sagan, an independent researcher, contributed to this commentary.

MONDAY FEBRUARY 7, 2022

Energy

MONDAY FEBRUARY 7, 2022

A new energy for Africa of today and tomorrow

ne of the main challenges for the energy sector in the transition process to a low-carbon future is to ensure access to energy for all in an efficient and sustainable way. According to International Energy Agency (IEA) projections, in the coming years energy demand will continue to grow, particularly in emerging markets and developing economies due to the convergence of several factors, including population increase, increased urbanisation and infrastructure development. The looming threat of climate change and the commitments made by national governments in the Paris Agreement require a strong push forward in the reconversion of industrial processes in specific sectors, such as transport and agriculture, promoting new technologies capable of generating clean energy and creating new job opportunities. With this in mind, at the beginning of 2021, we launched a series of joint initiatives in various countries on the African continent to develop the supply chain for high-quality biofuels based on new circular economy models. These biofuels are produced from raw materials that are not in direct competition with food and fodder crops, such as agricultural waste and residue and non-food crops (e.g. miscanthus and short rotation coppice). The aim is to provide raw material for the Eni bio-refining system in Italy and for the conversion of refineries in Africa, through the creation of agrihubs for the local cultivation of feedstock that does not compete with the food chain, for example

castor, and the processing of agricultural residue, such as that deriving from cotton, to replace palm oil in feeding bio-refineries. Kenya is now the lead country in achieving the identified goals: thanks to the advanced development of its agricultural sector and the collection and refining of used cooking oil, it will be able to revolutionise its energy industry, making it efficient and sustainable. Eni and IRENA for decarbonization in Africa The recent agreements signed with the International Renewable Energy Agency (IRENA) feature among the various initiatives aimed at promoting the inclusion of renewable energy in the decarbonization pathways of the international agency's member states. The agreement in question provides for the integration of the African continent into the biofuel value chain, including through institutional capacity building, agribusiness and industrial

development initiatives for the production of biofuels that will promote decarbonization of the transport sector. Our commitment is also based on promoting the integration of the African continent into the biofuel value chain through agribusiness and industrial development initiatives, supporting the decarbonization of the transport sector and promoting development opportunities. Claudio Descalzi, Chief Executive Officer of Eni The way forward for Kenya Located on the East coast of Africa, Kenya is one of the most advanced countries in Africa when it comes to its commitment to combatting the effects of climate change. It is a signatory to the Paris Agreement on climate change and intends to reduce its emissions 32% by 2030, while also creating “a globally competitive and prosperous country with a

high quality of life," according to its Vision 2030 plan. In December 2020, President Uhuru Kenyatta met with our CEO Claudio Descalzi to discuss how we could contribute to the achievement of the country's environmental commitments, provide local communities with efficient and sustainable access to energy resources, while also reducing its reliance on fossil fuels, which Kenya imports. The meeting led to the government setting up a team ready to work with Eni on every aspect of this strong social impact project. In Kenya we are currently working on converting the Mombasa refinery into a biorefinery, developing the first plant in Africa capable of producing biofuels. In its initial phase, the Mombasa bio-refinery will produce around 250,000 tonnes of biofuel per year from vegetable oil and used cooking oil. The conversion of the refinery will reduce the commissioning time, as well as the costs associated with new construction, employing around 400 people.

MONDAY FEBRUARY 7, 2022

News

MONDAY FEBRUARY 7, 2022

Ghana is 5th most attractive automobile market in Sub-Saharan Africa– Fitch Solutions

he January 2022 SubSaharan Africa’s Auto Sales Report by Fitch solutions has indicated that Ghana maintained its position as the 5th most attractive automobile market in the Sub Saharan Africa region. The report said Ghana has a developing automotive sales environment amid a favourable political risk outlook, enabling policy certainty. It stated that “Ghana managed to outperform its regional peers under our short- and long-term political risk scores in our RRI, scoring a respective 59.7 and 70.2 under these indicators”. However, the country’s poor road network remains an impediment to the country’s potential, as the country score of 16.1 under the ‘quality and extent of transport network’ indicator, underperforms the Sub Saharan Africa’s region average score of 21.3. Also, with the commissioning of the four-tier interchange, the report noted that progress is being made regarding upgrading

and developing the country’s road infrastructure. “Ghana’s low levels of vehicle ownership rates highlighted by a score of 10.5 under our ‘vehicle

ownership per 1,000 inhabitants’ indicator shows an upsurge in the vehicle sales growth as rising incomes lead to first-time buyers entering the market for vehicles.”

South Africa maintained its 1st position as the most attractive auto market in Sub Saharan Africa, followed by Mauritius and Botswana.

Airlines, airports should consider banning alcohol

outhwest Airlines’ decision to bring back alcohol service on flights after nearly two years is a money grab. And that’s not to blame Southwest. Other airlines had previously suspended alcohol sales in light of the numerous reports of booze-fueled incidents since the pandemic began, and other airlines brought it back. So this is not a ‘Let’s Gang Up On Southwest’ column. It’s a column about considering doing the right thing and not doing the money thing. Airlines and airports should consider banning alcohol. Listen, I am neither a prude nor a teetotaler by any stretch of the imagination. I enjoy a cocktail or three just as much as anybody, but I never felt the need to indulge either before or during a flight. And I don’t begrudge anyone who does. Over-indulging, however, is another story altogether. This is something long overdue. As a longtime flier, first in my career as a sportswriter and now as a travel writer, I can tell you with certainty that this goes back long before the pandemic. I have seen more than my fair share of

drunks at airport bars, at the gate and on the plane. COVID-19, the mask mandate and the sheer volume of confrontations on planes over the last couple of years has just exacerbated a situation that existed for a long time. An airport isn’t a bar or a nightclub or the local Elk’s Club or even a Christmas party at your house, and an airplane cabin sure as hell isn’t either. But according

to Southwest vice president Tony Roach, “Customers have expressed a desire for more beverage options.” Really? Wow, if I knew it was that simple I would express my desire for a first-class seat in my price range. But, what the heck, right? When you can charge $7 for a beer and $11 for a Jack-and-Coke from a captive audience, who cares if a passenger gets bombed

and harasses a flight attendant or two. “TWU Local 556 is outraged at Southwest Airlines' resumption of alcohol sales,” flight attendant union president Lyn Montgomery said in a statement. “We have adamantly and unequivocally informed management that resuming sales of alcohol while the mask mandate is in place has the great potential to increase customer non-compliance and misconduct issues.” I’ll take it a step further – I have no faith that if COVID ended tomorrow and the mask mandate went away that the situation involving alcohol would suddenly get better. You’re still going to have an element of people who feel the need to drink at an airport bar, or who can't possbily survive a three- or four-hour flight without alcohol. Banning booze inside the airport and certainly on the plane would solve a lot of that. In the end, airlines need to ask themselves the hard question that, seemingly, they refuse to do. Is it really worth the few dollars you make on alcohol sales to put your staff at constant risk?

African Business

MONDAY FEBRUARY 7, 2022

Africa cannot afford a second cold war By Hippolyte Fofack

ore than 20,000 Africans were killed in violent conflicts in 2020, an almost tenfold increase from a decade ago. Concurrently, and perhaps not coincidentally, SinoAmerican rivalry has escalated sharply. A new cold war, this time between the United States and China, along with other regional security threats, could be disastrous for Africa’s economic development and green transition. The dramatic increase in highintensity conflicts in Africa has coincided with two major trends: the expansion of transnational terrorist networks, sustained by a glut of itinerant foreign fighters, and the proliferation of foreign military bases amid rising SinoAmerican geopolitical tensions. This global contest to project power has given rise to proxy conflicts raging across the region – including in Ethiopia, which hosts the headquarters of the African Union – as the US and China vie for control of natural resources and strategic trade routes. As of 2019, 13 foreign countries were carrying out military operations on African soil – more than in any other region – and most have several bases across the continent. Africa is home to at least 47 foreign outposts, with the US controlling the largest number, followed by France. Both China and Japan established their first overseas military bases since World War II in Djibouti, which is the only country in the world to host both American and Chinese outposts. A growing number of foreign countries are influencing the outcome of local conflicts, from Central Africa and the Sahel to the Horn and Northern Africa. The US has invited many countries in the region to join an alliance aimed at curbing China’s overseas ambitions. Unveiling a new US-Africa strategy in 2018, then-national security adviser John Bolton warned that African leaders who failed to support America diplomatically should not expect much US aid in the future. Bolton’s statement set the stage for a return to conditional development assistance, in which geopolitical considerations rather than investment returns largely determine rich countries’ allocation of resources to capitalpoor economies. In the 1950s, US President Dwight Eisenhower called proxy wars “the cheapest insurance in

the world,” reflecting their limited political risks and human costs for sponsors. But these conflicts are tremendously costly for the countries in which they occur. In Africa, besides causing huge loss of life, proxy wars are prolonging insecurity and locking countries into a downward spiral of intergenerational poverty. Moreover, they drain African countries’ already limited foreignexchange reserves and shrink their equally narrow fiscal space while reversing democratic gains, reflected in the recent resurgence of military coups. Moreover, African governments’ rising military spending is absorbing a growing share of African government budgets, in contrast to a general decline in other parts of the world, further heightening the macroeconomic management challenges. According to the Stockholm International Peace Research Institute, military spending in Africa exceeded $43 billion in 2020, up from $15 billion in the 1990s. Defense outlays accounted for an average of 8.2% of government spending across Africa in 2020, compared to an unweighted global average of 6.5%. The share is considerably higher in conflict-affected countries like Mali (18%) and Burkina Faso (12%). And that is where the fastest increases in defense outlays have occurred. According to SIPRI, three of the five African countries where military spending is rising most sharply – Mali, up 339% over the past decade, Niger (288%), and Burkina Faso (238%) – are battling terrorist networks in the Sahel, a desperately poor region stretching across the continent from Senegal to Sudan and

Eritrea. Even before the COVID-19 crisis erupted, most poor African countries already faced huge, persistent infrastructure financing gaps – and the increase in military spending has often come at the expense of investment in productive, climate-resilient projects. These shifts in government expenditure are undermining policymakers’ ability to use robust public investment to crowd in private capital and thus keep Africa on the long-run growth trajectory required to ensure global income convergence. Growing political and conflict-related risks are also deterring investment and raising borrowing costs. In February 2021, for example, Fitch Ratings downgraded Ethiopia’s sovereign credit rating, citing among other factors the deterioration of the country’s political and security environment following the outbreak of civil war and heightened regional tensions. The scars of the Cold War – which claimed millions of African lives and was largely responsible for the lost decades that precipitated a widening income gap between Africa and the rest of the world – are still fresh, and the region cannot afford a sequel. In addition to its enormous human and economic costs, the Cold War exacerbated political fragmentation in Africa as countries aligned themselves with either the West or the Soviet bloc. That division sustained market segmentation, reinforced colonial borders, and undermined cross-border trade and regional integration. A second cold war would likewise weaken ongoing efforts to deepen

integration under the nascent African Continental Free Trade Area. The subordination of growth and development objectives to security priorities can only worsen intergenerational poverty, fuel migration pressures, damage the environment, and impede climate-change mitigation and adaptation. These risks will increase further as policymakers are compelled to divert scarce resources away from the infrastructure investment needed to diversify African countries’ sources of growth and accelerate their integration into the global economy. For centuries, colonial powers, and then superpowers, viewed Africa exclusively through the prism of their economic, security, and geopolitical interests. This undermined longterm investment and regional integration, which sparked spectacular growth elsewhere the world. Today, the same mentality, now fueled by US-China tensions, is perpetuating and exacerbating insecurity, ensnaring countries across Africa, especially in the Sahel, in both a “conflict trap” and “poverty trap” that keeps them in a downward spiral. As John Maynard Keynes said, “The difficulty lies not so much in developing new ideas as in escaping from old ones.” Transcending a cold-war mindset will not be easy, especially in a changing geopolitical environment where technology diffusion reduces the direct costs borne by the sponsors of proxy wars. But it is essential to foster Africa’s future prosperity, alleviate migration pressures, combat climate change, and save innocent lives.

Comment/Analysis

MONDAY FEBRUARY 7, 2022

Climate change and financial reporting

By Sinsiri Thangsombat, assurance leader and partner at PwC Thailand

limate change will increasingly affect future financial reporting now that the global community is setting targets to tackle global warming, according to PwC Thailand. Environmental action such as purchasing carbon credits may result in asset impairment, while using green financial instruments may have a big impact on bookkeeping. Companies will need to understand and assess the risks of setting green targets on corporate financial reporting to properly plan their environmental activities. The world is currently waking up to fight climate change, with governments and the private sector working together on an urgent agenda to reduce greenhouse gas emissions. That includes ambitious goals and measures outlined at the COP26 climate talks in November to limit the global average temperature rise to no more than 1.5 degrees Celsius. The result will be changes to the environment, government regulations and what consumers expect from businesses. It will also affect financial reporting. "Climate change not only affects the physical environment, regulation issuance and consumer behaviour but also financial statements," said Sinsiri Thangsombat, assurance leader and partner at PwC Thailand. "The organisations involved in issuing international accounting standards have disseminated educational material related to accounting issues. These include commitments to net zero carbon

emissions and carbon credit purchasing that may result in asset impairments and the issuance of environment-linked financial instruments. "It's important for companies to study the details of these issues and the possible impacts on financial statements before setting climate-related targets," she said. Taking action on climate change could result in indications of asset impairment for some businesses, which would then need to perform impairment testing, Ms Sinsiri said. If governments set limits on their carbon emissions and emissions rise beyond those limits, carbon credits will need to be purchased, increasing production costs. Changing consumer behaviour may also cause reduced demand for some products, which has been seen in the growing popularity of electric cars over conventional cars, she said. Companies will also need to assess whether their machinery can generate cash flows that cover the carrying value of the assets. Some companies may go public about their vision to conduct a socially and environmentally responsible business without being forced to by law. If, for example, a company makes a public statement that it intends to switch to machines powered by renewable energy within three years, it will create expectations among society and stakeholders. Consequently, cash flow projections based on the normal use of a machine may need to be revised if that period is shortened, which in this case may result in impairments, Ms Sinsiri explained.

GREEN FINANCING Companies also need to understand the terms of financial instruments linked to environmental development and climate change targets, she added. Financial instruments like green bonds and green loans are linked to a company's carbon emissions. Meeting these terms may affect interest rates, so a company needs to understand how interest rates and carbon emissions are linked. "If the company is operating under rules governing carbon emissions, it must comply with these rules or risk being closed down," she said. "This suggests the interpretation that interest rates are directly linked to the company's overall or credit risks. "If that is the case, the company must record interest by using the effective interest rate and change the interest rate according to the time when the risks change. "On the other hand, if the interest rate isn't directly linked to the company, management must assess the embedded derivatives in the loan agreements. The derivatives must be separated or included in loan instruments and then be measured at fair value. The accounting method depends on the analysis of the agreement. This is quite complicated and takes time to understand." When it comes to provisions, the impact of any environmental commitment needs to be assessed. For example, if a company is committed to replacing an old machine with a new one earlier than expected for environmental and social responsibility reasons, it needs to assess the impact on

the decommissioning period and related provisions in financial statements. Other issues include whether the net realisable value of inventories has been reduced due to higher production costs; the possible decrease in product prices due to changes in consumer behaviour causing reduced demand; or whether deferred income tax will be used if future profits decree CONSISTENT DISCLOSURE As important as the financial results are information disclosures because multiple accounting entries rely on estimations and assumptions, according to Ms Sinsiri. People reading financial statements need to be able to understand where the numbers come from, data sensitivity, changing assumptions, and various risks being faced and risk management. It's also important for both accounting and corporate social responsibility staff to use consistent information. This ensures that the estimates are made in the same direction. "The company should assess whether its operating business poses any environmental risk that may affect the figures in the financial statements and to what extent," she said. "This is to acknowledge the impact and prepare the financial reports appropriately. "More businesses will be under pressure to set targets to combat climate change under new global agreements. Their goal should be to generate profits responsibly, based on shared social and environmental targets," she concluded.

Markets

MONDAY FEBRUARY 7, 2022

WEEKLY MARKET REVIEW FOR WEEK ENDING JANUARY 28, 2022

CONTINUED ON PAGE 21

MONDAY FEBRUARY 7, 2022

CONTINUED FROM PAGE 20

WEEKLY MARKET REVIEW FOR WEEK ENDING JANUARY 28, 2022

BUSINESS24.COM.GH MONDAY FEBRUARY 7, 2022

NO. B24 / 302 | NEWS FOR BUSINESS LEADERS

MONDAY MAY 3, 2021

MONDAY FEBRUARY 7, 2022

GIADEC CEO commends progress of work at project 2 - Nyinahin block-B

he Chief Executive Officer of the Ghana Integrated Aluminium Development Corporation (GIADEC) Mr. Michael Ansah, last Thursday, paid a working visit to one of four projects site being executed under the Integrated Aluminium Industry (IAI) in Nyinahin Block-B (Project 2) in the Ashanti region. His visit follows the commencement of Mineral Resource Estimate (MRE) currently being undertaken by its partner, Rocksure International to validate and define the bauxite reserves. Mr. Ansah noted that it was important to experience, at first hand, the extent of work being undertaken by its partner Rocksure International which will pave the way for the construction of a mine and to deliver a solution to refine bauxite in Ghana. “We are seeing that work is progressing and what is particularly gratifying is to see a wholly-owned Ghanaian Company, Rocksure International demonstrate the competence and capacity to do this sort of work. We are looking at being able to enable that capacity, enable that vision of building a Ghana with Ghanaians who can drive the development of an industry such as this” Mr. Ansah said.

He noted that the MRE may be completed in less than a year which will pave the way for the building of a mine with a refinery solution in the NyinahinMpasaaso area. “The prospecting program will take a few months, probably 4 – 6 months or so and we are doing hills 6A, 6B, hill 5, and hill 4. The samples are being collected progressively so we can ascertain the quality and quantity of bauxite that we have in these areas” he added. Mr. Ansah was particularly excited to see the involvement of residents of Nyinahin-Mpsaaso and adjoining communities who have gained employment and are already on-site working. The delegation from GIADEC, led by its CEO, was taken on a brief tour of the project site to inspect and observe the processes of collecting bauxite samples for analysis at the laboratory. The

team was also introduced to a state-of-the-art drilling machine being used to conduct auger and diamond drilling. According to Project Geologist at Rocksure International, Mr. Isaac Marbee, opting for a combined approach drilling will help obtain quality core samples that will be analyzed at the laboratory to ascertain the geology and content of alumina which will inform the type of refinery to be constructed. Gordon, a resident from a nearby community in Akyease, who is one of the about hundred (100) indigenes who have gained employment expressed his gratitude to the various stakeholders who have ensured this bauxite mining dream is being realized. He was full of praise for GIADEC and the Government of Ghana. “I never knew I was going to live to witness this day. It’s a dream come true, and I will urge

the youth in this area to take advantage of this project to better their lives” he said. The sentiments of Owusu Afriyie, a resident from Nyinahin, were no different as he recounted the sudden transformation in his life. He said “the promise of mining bauxite in Nyinahin predates my parents and growing up, I always thought that bauxite mining can never happen in this part of the country. I thought it was a hoax; so, it brings me so much joy and satisfaction to be part of the first batch of people employed to work on this project”. The delegation from GIADEC included a Senior Manager with the technical department, Mr. Kwabena Atta Mensah, Executive Assistant to the CEO, Mr. Kojo Yankah, Communications Manager, Mr. Sheriff Appiah, and a Senior Administration Officer with the External Affairs Department, Ernest Appiah. In September 2021, Rocksure International signed an agreement to partner with GIADEC to execute Project 2 – the development of a mine and a refinery solution, under a joint venture partnership. Project 2 is one of four projects being executed under the Integrated Aluminium Industry (IAI) value chain by GIADEC.

Prof Mohammed Amidu conferred with fellowship by ICAG

rofessor Mohammed Amidu of the Department of Accounting, University of Ghana Business School (UGBS), together with 224 members of the Institute of Chartered Accountants, Ghana (ICAG) was conferred with a fellowship at an event that took place at La Palm Royal Beach Hotel. The maiden Fellowship Conferment Ceremony was to duly recognise some members of the revered accounting body as fellows for their dedication, discipline and industry-wide contribution to accounting in both Ghana and globally. The fellowship status is the highest designation a member can attain in his or her professional career as a Chartered Accountant. Published by Business24 Ltd. Nii Asoyii Street, Mempeasem East Legon-Accra, Ghana.

Professor Mohammed Amidu is a Chartered Accountant with many years of experience. He has over 17 years of experience in teaching both local and abroad at the university level. He has taught a wide range of courses in both Accounting and Finance. They include Accounting Theory, Accounting for Sustainability, Principles of Taxation, Taxes and Business Strategy, Financial Services Management, Bank Management, International Banking among others. Prof. Amidu’s contribution to accounting and finance literature, in areas of Financial Inclusion and Literacy, Development Finance, Accounting Information Quality, Corporate Governance, Banking Tel: 030 296 5297 | 030 296 5315 Editor: Benson Afful editor@business24.com.gh +233 545 516 133

Market Structure and Stability, and Corporate Tax Policy, is a very significant one. In an interview with Professor Amidu, he spoke about how proud and privileged he is to be honoured as a Fellow of the Institute of Chartered Accountants, Ghana, especially with it being the maiden edition. He stated, “From a humble beginning, I chartered almost 17 years ago, that is 2005, and conferring fellowship to me in 2022, I think it is an honour and a business24.com.gh

privilege and I am very grateful”. He believes being a Chartered Accountant and for that matter a Fellow, he owes the Department, the Business School and the University more responsibility. He will therefore continue to put more professionalism into his job and do his best to honour his responsibility as a Fellow of the Institute. The University of Ghana Business School is proud of Professor Amidu and wishes him well in all his endeavours.