Business24 Newspaper - July 27, 2020 by Business24 Online

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MONDAY JULY 27, 2020

Airport tax shortfall pushes sector to the brink Minority accuses gov’t of excessive borrowing The Ranking Member of Parliament’s Finance Committee, Cassiel Ato Forson, says continuous borrowing by government will not only increase the public debt but hurt the economy. >>PAGE 3

BY EUGENE DAVIS

BY DOMINICK ANDOH

The shortfall in actual airport taxes realised for the first half of the year has eroded government revenue, pushing the Ghana Airports Company and other agencies that draw funding from airport tax receipts to the brink. For the 2020 financial year, government expected to receive GH¢556.2m in airport tax revenue, of which GH¢287.9m was projected to be received by half-year. However, the COVID-19 pandemic, which forced government to close all land, sea and air borders, leading to an 80 percent fall in passenger throughput in the second quarter of the year, has affected the half-year performance.

The mid-year budget review presented to Parliament last week revealed that half-year airport tax revenue realised was GH¢117.8m, indicating a shortfall of about 59 percent. With the exception of domestic air service at Terminal 2 and pre-approved repatriation flights operated out of Terminal 3, there is no other activity within the main international terminal of the Kotoka International Airport (KIA). Most airline offices within Terminal 3 have been closed for months, with no idea of a reopening date, while most restaurants, forex bureaux and gift shops within the facility have >> MORE ON PAGE 2

Ghana positions to become auto hub in AfCFTA era Finance Minister Ken Ofori-Atta has announced the planned establishment of an Automobile Industry Development Centre to coordinate licensing of vehicle assemblers and manufacturers, and monitor their compliance with industry regulations. BY DOMINICK ANDOH

>> PAGE 3

ECONOMIC INDICATORS *EXCHANGE RATE (INT. RATE)

USD$1 =GHC 5.6230*

*POLICY RATE

14.5%*

GHANA REFERENCE RATE

15.12%

OVERALL FISCAL DEFICIT

6.6 % OF GDP

PROJECTED GDP GROWTH RATE PRIMARY BALANCE.

1.5% -1.1% OF GDP

AVERAGE PETROL & DIESEL PRICE:

NBSSI disburses GH¢57.1m to 64,196 small businesses >> PAGE 27

Government negotiating with IPPs for cheaper power >> PAGE 29

0.9 percent growth is positive indication – Pwc >> PAGE 27

GHc 5.13*

INTERNATIONAL MARKET BRENT CRUDE $/BARREL

42.30

NATURAL GAS $/MILLION BTUS

1.78

GOLD $/TROY OUNCE

1,685.06

CORN $/BUSHEL

329.50

COCOA $/METRIC TON

2,384.00

COFFEE $/POUND:

+5.70 ($108.30)

COPPER USD/T OZ.

220.15

SILVER $/TROY OUNCE:

17.07

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NEWS/EDITORIAL

MONDAY JULY 27, 2020

EDITORIAL

Wash your hands 2

Aviation sector players need support The three main entities that have been impacted by the shortfall in airport taxes, occasioned by the COVID-19 pandemic, must be supported to ride out the storm and emerge stronger when the current pandemic is brought under control. The Ghana Airports Company, Ghana Civil Aviation Authority, and the newly-established Accident Investigation and Prevention Bureau need support in these trying times. These entities are crucial to the safe administration of the country’s airspace, airports management, and helping prevent aviation accidents and incidents in the

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indicating a shortfall of about 59 percent. Given the impact of the pandemic on the industry, government, in the mid-year review, cut its annual projected airport tax receipts by 43.5 percent. Hence, GH¢314m is now expected to be raked in instead of the initially projected GH¢556.2m for 2020. The data show that government, working through the Aviation Ministry, must find the resources to support these entities or find a creative means of keeping them in business.

Airport tax shortfall pushes sector to the brink CONTINUED FROM COVER

Wear a mask

country. For the 2020 financial year, government expected to receive GH¢556.2m in airport tax revenue, of which GH¢287.9m was projected to be received by half-year. However, the COVID-19 pandemic, which forced government to close all land, sea and air borders, leading to an 80 percent fall in passenger throughput in the second quarter of the year, has affected the halfyear performance. The mid-year budget review presented to Parliament last week revealed that half-year airport tax revenue realised was GH¢117.8m,

recorded no sales for months. Given the impact of the pandemic on the industry, government, in the mid-year review, cut its annual projected airport tax receipts by 43.5 percent. Hence, GH¢314m is now expected to be raked in instead of the initially projected GH¢556.2m for 2020. Implications of revenue shortfall The implication of the falling revenue is dire for the industry.

Firstly, the Ghana Airports Company will struggle to service the debt it secured for the construction of Terminal 3 at the KIA. As at last week, official sources said the company’s debt burden stood at about GH¢1.6bn (US$300m). Aside its debts, the airports operator also has to meet its fixed and recurrent costs at a time of reduced revenue. Another entity affected by the revenue shortfall is the Ghana Civil Aviation Authority (GCAA), which

receives 7.5 percent of the airport tax, also known as the Airport Passenger Service Charge (APSC). The authority, realising the impact of COVID-19 on the industry, has requested a bailout from government. The revenue situation will also affect funding for the newly-established Accident Investigation and Prevention Bureau, which has been legally assigned 1.5 percent of the APSC.

LIMITED Copyright @ 2019 Business24 Limited. All Rights Reserved. Editorial Team Dominic Andoh: Editor Eugene Kwabena Davis (Head of Parliamentary Business & Commodities) Benson Afful (Head of Energy & Education) Patrick Paintsil (Head of Maritime & Banking) Nii Annerquaye Abbey (Online Editor) Marketing Alexander Lartey Agyemang (Business Development Manager) Ruth Fosua Tetteh (Dept. Business Development Manager) Gifty Mensah (Marketing Manager) Irene Mottey (Sales Manager) Edna Eyram Swatson (Special Projects Manager ) Events Evelyn Kanyoke (Snr. Events Consultant) Finance/Administration Joseph Ackon Bissue (Accountant)

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Minority accuses gov’t of excessive borrowing BY EUGENE DAVIS

The Ranking Member of Parliament’s Finance Committee, Cassiel Ato Forson, says continuous borrowing by government will not only increase the public debt but hurt the economy. Speaking to the media after the Finance Minister, Ken Ofori-Atta, presented the mid-year budget review to Parliament on Thursday, Mr. Forson said the government has failed in the management of the economy. “It is clear this government has spent GH¢11.1bn on coronavirus without accounting for it. It is also clear that they have increased the public debt from GH¢120bn to GH¢255bn, and they are going to spend an additional GH¢30bn to increase the public debt to approximately GH¢280bn. Clearly, they have failed,” he said.

He further alleged that despite the loans government has taken, it cannot account for the utilisation of the funds. Mr. Forson, who doubles as the Member of Parliament for Ajumako-Enyan-Esiam constituency, also described the budget review as a document of “manifesto promises”. This, according to him, is unacceptable since the AkufoAddo administration has consistently failed the people of Ghana. “There is nothing in this document for us to be proud of. And we in the minority want to serve notice that from Monday we are ready to debate this and subject it to the scrutiny that it deserves.” On the GH¢100bn Ghana CARES Obaatanpa Programme announced by the Finance

Ato Forson fears government is on a slippery path.

Minister, Ato Forson argued that the mid-year budget was not the platform to introduce manifesto pledges, given that the programme will actually start from 2021 and end in 2023. A member of the Finance Committee, Daniel Okyem

Aboagye, rebuffed suggestions that government will not be able to pay back the loans it has acquired. He stated: “No lender will give us money without doing their homework; they will check your ability to pay.”

Ghana positions to become auto hub in AfCFTA era BY DOMINICK ANDOH

With the expected implementation of the African Continental Free Trade Area (AfCFTA) once the COVID-19 pandemic is brought under control, Mr. Ofori-Atta said the establishment of the centre, together with other policy decisions to facilitate the assembly of automobiles in the country, will lead to the export of vehicles from Ghana to the rest of the continent. The AfCFTA had been expected to come into force on July 1, but the impact of the pandemic on participating countries has led to the postponement of the start date. A new date is yet to be communicated. Based on the number of participating countries, the AfCFTA is the largest trade agreement since the formation of the World Trade Organisation. Its implementation will form a US$3.4tn economic bloc with 1.3bn people across the continent. Presenting the mid-year budget review to Parliament last week, Mr. Ofori-Atta said the automobile development centre “will also coordinate the implementation of a Vehicle Financing Scheme which will link financial institutions to

individuals and groups interested in purchasing newly assembled vehicles in Ghana. Furthermore, it will manage an Automotive Skills and Technology Upgrading Programme to provide requisite skills for the industry.” He added: “It is envisaged that the development of the automobile industry in Ghana, which is one of the new Strategic Anchor Initiatives being promoted under the Ministry of Trade and Industry’s Industrial Transformation Agenda, will constitute a significant step towards import substitution and enhancing exports, particularly within the context of the African Continental Free Trade Area (AfCFTA).” Following the government’s introduction of the Ghana Automotive Development Policy, which provides incentives to promote automobile manufacturing in Ghana, a number of global vehicle manufacturers have signed agreements with the state to establish vehicle assembly plants in the country. The companies include VW, Nissan, Toyota, and Sinotruck. VW has already begun production of five Volkswagen models—Tiguan, Amarok Pickup, Passat, Polo, and Teramont—at its Accra plant.

Government, working through the Ministry of Trade and Industry, wants to make the country an automobile hub in the sub-region.

Nissan and Toyota are expected to open their own plants this year. To support demand for locallyassembled vehicles and save hard-earned foreign exchange, the government is seeking to reduce the country’s car imports. Ghana’s top five imports by value are vehicles, industrial machinery, electronic machinery, cereals, and plastics. Of the vehicles imported, used and salvaged automobiles constitute a significant proportion and are quite popular since most people cannot afford new vehicles. Currently, importers of

used cars which are at least 10 years old are made to pay a fine in addition to the applicable import duties. However, a new Customs Bill passed in March banned the importation of certain specified used vehicles that are older than 10 years. In a bid to further the implementation of the automotive development policy, government and government-related institutions have been ordered to prioritise locally-assembled vehicles as their first option when procuring new vehicles for their operations.

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WACOMP Ghana and GSA organise training for hand sanitizer manufacturers The West-Africa Competitiveness Programme in Ghana (WACOMP – Ghana), funded by the European Union (EU) and implemented by United Nations Industrial Development Organization (UNIDO), has organised an online training on the national standard for hand sanitizers. The training was organised in collaboration with the Ghana Standards Authority (GSA) and aimed at promoting national requirements for alcohol-based hand sanitizers’ production. Over 50 Ghanaian Small and Medium Scale Enterprises (SMEs) willing to produce high quality hand sanitizers for the national market registered for the training. Mr. Charles Kwame Sackey, the Chief Technical Advisor of the project highlighted that many alcohol-based sanitizers are on the market but not all of them are safe for consumers. “With the EU support and our collaboration with national quality agencies like the GSA, we hope to help Ghana to produce locally high-quality alcohol- based sanitizers in large quantities” he said. Mrs. Francisca Frimpong from the Food, Chemistry and Material Standards Department of the GSA explained in detail the

Good Manufacturing Practices, the Product Certification Requirements and checklists for producing alcohol-based hand sanitizers. She emphasized the importance of GS 1303:2020 on specification for alcohol-based hand sanitizer, developed through a partnership between GSA and two UNIDO

implemented projects, WACOMP Ghana and the Global Quality and Standards Programme (GQSP), funded by the Swiss Secretariat of Economic Affairs (SECO). In the conclusion remarks, Ms. Joyce Okoree, the Head of Standards at the GSA, cordially invited companies to contact the GSA for any information on how to

produce products compliant with the approved standard. Due to the rising number of confirmed coronavirus cases in Ghana, WACOMP Ghana will continue to support the fight against COVID-19 by strengthening cosmetics clusters producers’ capacities to produce high quality alcohol based hand sanitizers.

Covid-19: AfDB Group supports Ghana with $69 million grant The Board of Directors of the African Development Fund (ADF) on Friday approved a $69 million grant to support Ghana’s efforts to tackle the COVID-19 pandemic and mitigate its socio-economic impact on the nation. The grant from the ADF, the concessional arm of the African Development Bank, would provide fiscal budget support to finance the government’s national COVID-19 Emergency Preparedness and Response Plan, and Coronavirus Alleviation Programme. Specifically, the funds would help to upgrade the capacity of healthcare facilities to isolate, diagnose and care for patients, and provide more test kits, pharmaceuticals, equipment and beds. It would also ensure adequate Personal Protective Equipment (PPE) for health workers and support financial incentives and an insurance package for health and allied professionals. Ghana ranks fourth in COVID-19 infections in Africa after South Africa, Egypt and Nigeria. “Overall, the objective is to help contain the spread of the

virus, expand testing and ease the impact of the virus on social and economic life, through measures aimed at protecting jobs, sustaining livelihoods and supporting small businesses,” said Marie-Laure Akin-Olugbade, the Bank’s Director General for West Africa in a statement to the media. The ADF grant is a Crisis Response Budget Support operation, disbursable in a single tranche under the Bank’s $10 billion COVID-19 Response Facility. The grant aligns with one of the Bank’s High 5 priorities, namely to “Improve the quality of life for the people of Africa”. Under Ghana’s COVID-19 response programme, all affected persons will receive free treatment and free water supply. Micro, Small and Medium enterprises (MSMEs) will benefit from a soft loan scheme with oneyear moratorium and two-year repayment period. The private sector will also benefit from a tax freeze and refund, direct subsidies and a guarantee fund, enabling businesses to access bank credit. gna.org.gh

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Ghana’s Voters ID card vulnerability

BLAY ABU SAFIAN

n the past years, there have been several issues battling with the security of systems and networks. The Aadhaar card of India is a 12-digit unique identity number that can be obtained voluntarily by residents, or passport holders of India, based on their biometric and demographic data. Due to the lack of security and carelessness of the developers of the system, millions of Indian citizens’ data were put at risk. This article is meant to explain the data risk and security of the new Ghana voters’ ID card. How cyber-attack affect our lives As the world evolves, our lives get inter-connected through the Internet. This increases the rate of cybercriminals using sophisticated tools and techniques into compromising systems and networks. Cybercriminals advance their social engineering skills. Social engineering is the use of manipulation into disclosing private information of individuals. As cybercriminals evolve with their tactics and techniques, so do the tactics and techniques of cyber experts also get more sophisticated. What is a vulnerability in a system? Vulnerability is a flaw or loophole in the architectural design of a system or network. With the increase in science and technology, the degree of system updates also increases rapidly. Designers don’t realize the vulnerabilities in their designs. Some lawbreakers take

advantage of these vulnerabilities, avoid security strategies, and destroy computer systems. As it is said, no system is 100% safe. Analysis of the Ghana Voters ID card A few days back, I came across the new Ghana voters ID card on twitter, which was posted by a television network company trying to show how the new ID looked. Showing the ID card and trying best to hide the identity of the citizen was not still the best. Keeping a copy and looking further into it to see the risk involved. Researching into it revealed how data was being transmitted unencrypted through the QR-code on the ID card. No security measures are put in place for the safety and security of the citizen. Information of the citizen could be extracted fully through the exposed QR-code. Details such as surname, first name, sex, date of birth, polling station code, date of registration, and voter identification number. Analysis of Voter ID cards from Estonia First of all, let’s take a look at Estonia’s ID card. Estonia has by far the most highly developed national ID-card system in the world. Considerably more than a legitimate personal ID, the required ID card additionally gives digital access to all of Estonia’s secure e-services. The chip on the card carries embedded files and using 384bit ECC public-key encryption (Elliptic-curve cryptography), it tends to be utilized as complete

evidence of ID in an electronic domain. The card plays multiple purposes such as using it for I-voting, health checks, proof of identity. Citizens have the right to vote simply but securely anywhere from the Internet. During the prevoting process, voters log into the system using an ID-card or mobileID, to cast their vote. The identity of the voter is removed before getting to the national electoral commission for counting, thereby ensuring anonymity. The secrecy of the vote is guaranteed as with the early-voting procedure by mail – the vote is signed and encrypted with the voter’s own certificates and placed within a double e-envelope for protection. The encrypted votes are collected, but their content will not appear outside of the cryptograms. Only after voting has closed will a device be activated by the electoral unit, which can open up the votes. The necessary security is ensured by precise organizational measures. The server software is public; observers are welcome. In brief, in order to conceal and securely transmit the vote, the voting system uses cryptography, which ensures the same voter identity for the certificates in the document. After the vote, it is possible to use a QR code with a mobile phone, to verify the accuracy of your vote through a different communication channel Risk in lack of security of the Ghana Voters ID card The lack of security in the QR code on the Ghana voters ID card can result in the clone of the card. Impersonators can make a fake

copy of the card for malicious activities such as using the card to register for a new sim card in someone else’s name, registration of mobile money, bank account, and even impersonation of high government profiles during the recruitment process. This will increase the practice of voter card racketeering. Control measures for the Voters’ ID card Cryptographic mechanisms are necessary for the encryption, and control of access to QR code data content. Adopting this mechanism provides confidentiality and access control for the encoded contents so that only the authorized personnel can have access to the encoded information. Conclusion Government, industry, academia, and civil society must bear in mind that security is not a myth. We cannot have 100% secure systems but can have almost perfect systems when we keep security at the back of our minds in everything we do. Together we stand, and together we can build safe cyberspace for our country Ghana.

Blay Abu Safian – (Founder/CEO Inveteck Global & Security Researcher | Member, Institute of ICT Professionals Ghana). For comments, contact author founder@ inveteckglobal.com; +233 (20)236-6048

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Feature

BANKING IN THE NEXT DECADE

Technological impact on Indigenous Banking

BLAY ABU SAFIAN

“Technological innovations will be the heart and blood of the banking industry for many years to come and if big banks do not make the most of it, the new players from FinTech and large technology companies will.”–David Brear, Global CEO of 11: FS

anking is one of the world’s oldest businesses. It’s been with us in one form or another since the merchants of Ancient Babylon started offering grain loans to farmers who needed to transport goods between towns. It wasn’t until 14th century Italy that banking as we recognize it today developed. In fact, the oldest bank still trading today (the Monte dei Paschi di Siena) was founded in 1472. When was the last time you actually walked to your bank physically (save COVID-19 era) and spoke to the teller? Several days ago, or perhaps weeks, right? Technology has had a very big effect on almost every area of our lives. From the way we work to how we associate with others or how we entertain ourselves, technology has altered almost everything. The speed that modern technology has developed has meant that the traditionally slow-moving financial institutions have had to invest billions to remain relevant to customers and competitive in the marketplace. Many examples of how technology has impacted banking can be explored: 1. Online Banking: This is perhaps one of the biggest changes that has ever happened in the banking sector. Previously

transferring money involved going to the bank physically and making the transfer, but now that is not the case. Today you can easily move money by just keying in your account details online to access your bank account and then making the transfer. This allows you to easily and quickly transfer, manage or check your money from virtually anywhere. It also means that money stays in the bank adding to the bank’s cash reserves as you no longer need to get out physical cash to pay a bill or a debt. There are also banking apps and services that allow users to easily find details about different services and details of banks. Online banking has literally made it possible for people to access banking services from anywhere in the world easily and conveniently. 2. Automated Teller Machines (ATM): Can you imagine life without ATMs to dispense your money on the spot whenever you need it? These devices grew in popularity in the mid 80’s after Chemical Bank had installed the world`s first ever in the US and there are now over 10 million of them globally. Super ATMs today sell things like gift cards and stamps while Drivethru Automatic vending machines make it more convenient for people to get their money. ATMs have made life easier for almost everyone as they can be found anywhere from bars to movie theatres, hotels, grocery stores and more. 3.Financial Integration: Increased online activity in the banking sector has also attracted

the attention of other players that are not in the banking sector. Many institutions now provide different banking services such as payday loans, prepaid credit/debit cards, cheque cashing services and business loans for a fee. Other online services provided at banks are also available at such institutions. 4. It has gone global: Another big change that has been brought about by technology is globalization of the banking sector. Banks throughout the world now enjoy global presence and are able to transact from anywhere at any time. They can operate across the globe, the cloud making it possible for them to share data easily and conveniently. 5. The Internal Hierarchy in financial institutions has shifted: The amount of soft data held by banks has increased tremendously over the past few years, meaning that data mining is now an integral part of a bank’s operations. This typically means that Information Technology experts are now just as essential as finance experts are to financial institutions. This is especially true as more banks embrace cloud computing. They need IT experts to manage data and keep up with the trends. 6.24-Hour Access: Online services allow consumers to access banking services throughout the day, seven days a week. You can easily log in to your bank’s site at any time of the day and perform any transaction. This provides people with the convenience of conducting business on holidays and weekends when banks are closed.

7. A different sort of Customer Service: A 2015’s World Retail Banking Report spelled out some bad news for high street banks in the western world. Positive customer experiences had fallen for the second year in a row. Younger, Generation-Y, bank customers are less likely than their parents to show loyalty to one particular bank. Customers are generally less willing to take their bank’s word for which secondary products such as mortgages and investments they should take, preferring to do research themselves. Online banking and mobile banking mean that generic customer services are no longer needed. Customers expect a more tailored and personalized experience when they, on rare occasions, need to contact their bank by phone or by chat, or even in person at a branch.

Ebenezer ASUMANG (CGIA) worked extensively in mainstream Banking & NBFIs. He is a Chartered member of the CGIA Institute, USA, a Google Certified Digital Marketer and an Author. www.ebenezerasumang.com, info@ ebenezerasumang.com, Phone: 0242339145

MONDAY JULY 27, 2020

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“KNOW, LIKE, TRUST” – Tried, tested, and the results speak for themselves!

BY BUSINESS FOR BREAKFAST (BFORB)

n networking circles, we frequently bound around the ‘Know – Like – Trust’ formula as the tried and tested route to delivering sustainable referrals for our business. But how often do we take a step back and consider how it really works in action? It sounds simple. Have a coffee; get to know and like each other and hey presto, the trust is formed… and the referrals come rolling in. I think we all know it takes more than that. What is Trust? Trust is the ‘firm belief in the reliability, truth or ability of someone or something’, which says a lot about how much is expected of us in order to achieve success from the ‘Know Like Trust’ formula. Building and maintaining trust does not happen overnight; nor is there an easy route to achieving it. It takes time and effort to establish ourselves as a trusted person and we have to keep working hard to maintain it. People in networking situations often give up long before the magic starts to happen because they are impatient and too hungry for a sale. Networking is not a sales activity, it’s a relationship building exercise that we need to nurture over time if we want them to

deliver positive results. The truth is, when we make a referral, we put our valuable reputations on the line. So, we’re not going to risk recommending just anybody. We need to ‘trust’ that the referral will be a positive experience for the recipient, otherwise we risk devaluing the referrals we make in the future. How do we gain the confidence of our network? To gain someone’s trust we must prove ourselves in three vital ways: Reliability, Credibility and Reputation…and they are not negotiable. You need ALL of them. Reliability • Demonstrate that you are dependable, honest and consistent. • Follow through with everything you say you’re going to do. • Show up, be active and conscientious. Consistently attend your networking group and make sure you look for ways that you can help and support your fellow members. This is a great way to show off your authenticity and your ability to deliver. You’ll soon lose respect from those around you if your attendance is patchy and you let people down. Your actions showcase what you’re capable of – so make them count! Credibility We need to believe that you are the best person for the job.

Be sure to portray yourself as genuine, organized and proactive at all times – especially in your networking groups, where people will be assessing your credibility before taking the step to refer you. Make use of every opportunity to prove your expertise and competency. Actively communicate your successes to your network so that others will recognize you as being outstanding in your field. Take the time to do some favors for the people you network with. It’s a great way to build a relationship and show that you are a credible member of the team. Reputation Work hard on establishing a strong reputation for being the kind of person that other people want to do business with. Your reputation is the sum of the opinions and beliefs that others have of you, so remember, you are always showcasing who you are and what you stand for. This includes how you conduct yourself at networking events or the comments you make on social media. They all contribute to the overall picture and can make or break your reputation. It might seem like hard work, but don’t give up to early! The results speak for themselves… While you have got to be in the trust gaining business for the long haul, sticking with it will, in time, deliver a sustainable marketing

resource for your business. You just have to accept that getting to Know, Like and Trust people requires many different types of interactions and a fair amount of patience if you want to develop strong, durable and valuable relationships.

Business for Breakfast (BforB) Business for Breakfast (BforB) is internationally recognised for creating successful networking meetings, events and training for referral marketing. We create an environment where you can build quality relationships within your group, backed up by an ongoing member support programme. BforB is committed to helping small to medium scale businesses expand. In our professional network, members meet regularly in business networks to develop relationships, support each other and to share and record referral business. We are here to help you get new business from quality business introductions and referrals made through our meetings. Contact us: 059 4 016 432 |info@ bforbgh.com| Facebook & LinkedIn: @bforbghana||www.bforb.co.uk

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The Netherlands and Ghana – Fighting COVID together OVERVIEW FUNDING AND ACTIVITIES Worldwide The Netherlands contributed in the beginning of April the amount of 100 million euro to the WHO for the fight against COVID-19 in the more vulnerable countries. This support aims not only at preventing and at combatting COVID-19, but also focusses on mitigating socioeconomic consequences. In the beginning of July last, the Dutch Minister for Development Cooperation and Foreign Trade announced that some further 150 million Euro would be made available to help the more vulnerable countries in their fight against COVID-19. Even when the COVID-consequences come hard on the Netherlands itself, and indeed, they do, the Dutch still stand ready to help and support other countries to combat COVID and soften the socio-economic consequences. Ghana “Since the beginning of the COVIDcrisis in March, the Government of Ghana has done a commendable job to contain the COVID-crisis,” said Dutch Ambassador to Ghana, Ron Strikker recently. “Like their counterparts in the Netherlands, thousands of doctors, nurses and other medical staff are at the forefront to provide care and keep us safe. Like all Ghanaians, we as members of the international community are grateful for that. We as Dutch are proud that we can be of support and we intend to continue that support”” Dutch support to efforts to combat COVID-19 amounts as per mid July 2020 to almost 4 million Ghana cedi. And an increase to some 5 million Ghana cedi is envisaged in the next couple of weeks. Some of the most important interventions are stated underneath. Healthcare (1) COVID Connect Centre (300.00 Euro - ca. 2 mln GHC) In May, the COVID Connect Centre was launched within the University of Ghana Medical Centre. This is a virtual monitoring app with a back-end Care Coordination Centre at the University of Ghana Medical Centre (UGMC) that gives subscribers access to needed clinical support from a team of medical experts and specialists. It is based on technology developed by the Dutch IT-company Luscii. The program is considered a game changer in the fight against COVID-19 and some 2500 plus patients are benefitting from it. COVID-Connect is now being rolled out to other parts of the country.

This initiative is a joint one of Ghana’s Ministry of Health, University of Ghana Medical Centre (UGMC) and the Ghana branch of the social enterprise PharmAccess Foundation, based in the Netherlands. The project is largely funded by ACHMEA, a Dutch insurance and pension company and FMO, the Dutch Development Bank, which has supported programs in Ghana for over four decades. The total support from the Netherlands amounts to some 300.00 euro. In addition to this, with the help of Pharmaccess and the Ghana Health Service, a program is at present being developed to ensure better protection of healthcare workers in Ghana are protected against COVID so that they can continue providing care within the COVID-period and beyond and/or a program to enhance the capacity and efficiency of existing laboratories currently conducting Covid-19 tests. Dutch funding will amount to 200.000 Euro (1.350.000 GHC). Healthcare (2) Computer Aided Detection of COVID-19 (122.600 Euro – ca. 820.00 GHC)) On the initiative of the Dutch company Delft Imaging, in July 20, hospitals in Ghana which were earlier assisted in getting digital X-ray equipment installed in their facilities as part of a large Dutch-funded 22 mln euro Infrastructure Program, will receive and install small computer boxes with Delft CAD4COVIDsoftware. The software contains Artificial Intelligence, which helps to detect at an early stage lung conditions caused by COVID-19. Funding at the amount of 122.600 Euro comes from the Dutch Good Growth Fund, which is being managed by the Netherlands Enterprise Agency (RVO). Some 55 medical facilities are envisaged to be equipped within this program. Healthcare (3) - CORIP (65.000 GHC) Within the framework of the longstanding Dutch funded Cocoa Rehabilitation and Intensification Project (CORIP), Personal Protective Equipment (overalls, goggles, facemask, and boots) will be donated to six Health Facilities within the project catchment area. Each Health Facility will benefit 1700 euros of PPEs. Total contribution will come to 10.000 euros, or some 67.000 GHC. Healthcare (4) SWAPP (200.000 GHC) The Sustainable West Africa Palm Oil Project (SWAPP) distributes some 20,000 branded facemasks to direct project beneficiaries over the current period. The total costs are estimated at 30,000 euros, or some 200.000 GHC. (Healthcare (5) Tax revenue for

Economic Enhancement Program (TREE) (10.000 GHC) Within the framework of the Tax Revenue for Economic Enhancement Program (TREE), which focusses on the improvement on local taxation in Ghana, some 2000 nose masks have been distributed to 20 MMDAs, which take part in the program. Total costs at 10.000 GHC. WASH (1) - Urban Sanitation Program The Dutch-funded, UNICEF implemented Urban Sanitation Program (USP) , such in close cooperation with the Ministry of Sanitation and Water Resources and the municipalities of Ashaiman, Ho, Tamale and (soon) Elmina is perhaps one of the most successful WASH-programs in Ghana. WASH is central to managing the COVID crisis; hence, USP has over the last months focused on risk communication (radio, TV, market sensitizing events) disinfection, improvement of WASH-facilities in schools and health centers. Some 30.000 people benefitted from new household latrines and new hand washing facilities. In addition, some 3500 were handed out. Moreover, some 85 Environmental Health Officers at municipal assemblies received extensive training. WASH (2) P2P Program Within the WASH from Possible 2 Profitable project, loans from the 4 million euro Revolving Fund are given for COVID-related purchases of hygiene products such as handwashing buckets, production of hand sanitizer, detergents, soaps and Personal Protective Equipment like nose masks. This has stimulated more entrepreneurs to venture into WASH businesses as the demand for hygiene products has strongly escalated in the country. WASH (3) - GHANA WASH WINDOW Some water enterprises within the Dutch-funded Ghana WASH Window, i.e. Safe Water Network & Access Development rolled out an

anti-COVID- 19 plan in the Western, Eastern and Volta regions. For three months, their water stations provided free access to free and made available soap and hand washing stands. In addition, mechanized boreholes are being built for new district isolation centers. District assemblies get help from GWW in warning communities about COVIDrisks, including the production of information material. Some 130 communities and 24 health centers are supported. WASH (4) - INT Water Management Institute (IWMI) How to Build Back Better from COVID-19 Apart from all direct and emergency measure needed to fights COVID, understanding the effects of the response of COVID-19 on water, wastewater and sanitation management in Ghana is crucial. The ongoing COVID-19 pandemic teaches us that WASH is essential for our health, our safety and our prosperity. The IMWI study will help to sharpen current WASH-policies to improve water and sanitation in metropolitan, municipal and district assemblies and hence to ‘build back better’ from the COVID-19 pandemic. Contribution estimated at 100.000 Euro (670.000 GHC). Socio-economic measures (1) – Orange Corners Young Entrepreneurs Program (400.000 GHC) The Dutch-funded Orange Corners Program started in 2019. Orange Corners Ghana, as an acceleration program, contributes to the vibrant entrepreneurship climate in Ghana by bringing young entrepreneurs with a proven track record to the next level, with training for better knowledge, better skills, better business plans, higher turn-over and hence more jobs. In addition: access to finance. In order to help the 30 participants sofar in the OCProgram to get their businesses through COVID-times, each participant got a grant of 2000 Euro (some 13.500 GHC) each, totaling up to ca. 400.000 GHC.

MONDAY JULY 27, 2020

Aviation

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Ethiopian Aviation Academy Holds First of its kind Virtual Graduation Ceremony The first of its kind virtual graduation ceremony took place at Ethiopian Aviation Academy (EAA) on July 24, 2020. Ethiopian Aviation Academy, the largest and the most modern aviation training academy in Africa, has graduated 558 aviation professionals on a graduation ceremony that was held in a virtual environment for the first time due to COVID-19 pandemic. Ethiopian Airlines Group GEO Mr. Tewolde GebreMariam, Ethiopian executive management team, aviation stakeholders, invited guests as well as family members of the graduates attended the virtual ceremony. Speaking at the virtual ceremony, Mr. Tewolde congratulated the graduates and remarked, “Even though we could not gather to celebrate your special day due to the pandemic, we are grateful that technology has made this virtual graduation possible. I congratulate

and welcome you all to this virtual graduation ceremony of Ethiopian Aviation Academy, a pioneer and the most modern in Africa. We strongly believe that educated and well-trained workforce is one of the pillars of sustainable growth. In line with that, Ethiopian Airlines has been offering high quality education and graduated over 18,000 aviation professionals like you, equipped with the knowledge and skills required for the aviation industry. Your graduation at a time when the world is dealing with unprecedented challenges should inspire you to build a better future by strengthening your resolve.” The graduates include 72 pilots, 173 cabin crew, 7 aircraft technicians and 306 marketing professionals from six countries including Ethiopia. Outstanding graduates were honoured with videos featuring their success stories. Ethiopian Airlines has been

offering quality training at its globally certified, world-class aviation training centre and produced tens of thousands of aviation professionals mainly from African and middle eastern countries. Ethiopian Airlines (Ethiopian) is the fastest growing Airline in Africa. In its seventy plus years of operation, Ethiopian has become

one of the continent’s leading carriers, unrivalled in efficiency and operational success. wEthiopian commands the lion’s share of the Pan-African passenger and cargo network operating the youngest and most modern fleet to 127 international passenger and cargo destinations across five continents.

Emirates covers customers from COVID-19 expenses Emirates customers can travel with confidence, as the airline will cover medical expenses of up to EUR 150,000 and quarantine costs of EUR 100 per day for 14 days, should they be diagnosed with COVID-19 during their travel, while they are away from home. This cover is provided by the airline, free of cost to its customers. HH Sheikh Ahmed bin Saeed Al Maktoum, Emirates Group Chairman and Chief Executive said: “Under the directive of His Highness Sheikh Mohammed, UAE Vice President and Prime Minister and Ruler of Dubai, Emirates is proud to lead the way in boosting confidence for international travel. We know people are yearning to fly as borders around the world gradually re-open, but they are seeking flexibility and assurances should something unforeseen happen during their travel.” He added: “Emirates has worked hard to put in place measures at every step of the customer journey to mitigate risk of infection, and we have also revamped our booking policies to offer flexibility. We are now taking it to the next level, by being the first in the industry to offer our customers free global cover for COVID-19 medical expenses and quarantine costs should they incur these costs during their travel. It is an investment on our part, but we are putting our customers first, and we believe they will welcome this initiative.” First airline in the world to offer

free, global cover for COVID-19 related costs This cover for COVID-19 related medical expenses and quarantine costs is offered by Emirates free of cost to its customers regardless of class of travel or destination. This cover is immediately effective for customers flying on Emirates until 31 October 2020 (first flight to be completed on or before 31 October 2020). It is valid for 31 days from the moment they fly the first sector of their journey. This means Emirates customers can continue to benefit from the added assurance of this cover, even if they travel onwards to another city after arriving at their Emirates destination. Customers do not need to register or fill in any forms before they travel, and they are not obligated to utilise this cover provided by Emirates. Any impacted customer who has been diagnosed with COVID-19 during their travel simply has to contact a dedicated hotline to avail of assistance and cover. The hotline number, and details of what COVID-19 related expenses are covered, is available on www. emirates.com/COVID19assistance. Flexibility and assurance With the gradual re-opening of borders over the summer, Emirates has revised its booking policies to offer customers more flexibility and confidence to plan their travel. Customers whose travel plans are disrupted by

COVID-19 related flight or travel restrictions, can simply hold on to their ticket which will be valid for 24 months and rebook to fly at a later time; request travel vouchers to offset against future Emirates purchases, or request refunds via an online form on Emirates’ website or via their travel booking agent. Emirates currently serves over 60 destinations in its network, facilitating travel between the Americas, Europe, Africa, the Middle East and the Asia Pacific through a convenient connection in Dubai for customers across the world. Dubai is open: Customers from Emirates’ network can now to travel to Dubai as the city has re-opened for business and leisure visitors with new air travel protocols that safeguard the health and safety of visitors and communities. For more information on entry requirements for international visitors to Dubai, visit: www.

emirates.com/flytoDubai Health and safety first: Emirates has implemented a comprehensive set of measures at every step of the customer journey to ensure the safety of its customers and employees on the ground and in the air, including the distribution of complimentary hygiene kits containing masks, gloves, hand sanitiser and antibacterial wipes to all customers. For more information on these measures and the services available on each flight, visit: www.emirates.com/ yoursafety Travel restrictions: Customers are reminded that travel restrictions remain in place, and travellers will only be accepted on flights if they comply with the eligibility and entry criteria requirements of their destination countries. Visit: www. emirates.com/travelrestrictions Dubai residents can check the latest travel requirements at: www. emirates.com/returntoDubai

MONDAY JULY 27, 2020

Feature

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China’s Fiscal Dilemma BY YU YONGDING

OVID-19 hit the Chinese economy hard in the first quarter of 2020, causing real GDP to contract by 6.8% year on year. But since the city of Wuhan emerged from lockdown in early April, the economy has gradually returned to normal, and grew by 3.2% in the second quarter. According to the consensus view, China’s current potential GDP growth rate is 6%. If it achieves this in the second half of 2020, the economy could post full-year annual growth of 2.5%. But achieving this outcome will require a demand boost. Lack of effective demand has impeded China’s growth for years, and the pandemic has made the situation much worse. Consumption, which accounts for 55% of China’s GDP, fell by 3.9% in the second quarter, on top of a 19% decline in the first three months of 2020. Some argue that consumption will now surge and become the main growth driver in the remainder of the year. But this is unlikely, because households will be anxious to replenish the savings they depleted during the lockdown. The government can and should provide relief to households affected by COVID-19, but it cannot do much to stimulate consumption. China’s exports and imports fell by 3% and 3.3%, respectively, in the second quarter. But because the share of net exports in China’s GDP is less than 1%, export performance will in any case have a limited impact on growth in the second half of 2020. Although fixed-asset investment turned only marginally positive in the second quarter, this was a significant improvement on the 16.1% contraction in JanuaryMarch. A back-of-the-envelope calculation suggests that, given the likely growth rates of consumption and net exports, fixed-asset investment would have to increase at a double-digit rate in the second half of 2020 in order for the economy to grow by 2.5% for the year as a whole. In China, fixed-asset investment consists mainly of three categories: real estate, manufacturing, and infrastructure. Real-estate investment grew by 1.9% year on year in the first half of 2020, and is expected to increase at a 5% rate for the remainder of the

year. Manufacturing investment, meanwhile, shrank by 11.7% in the first half, and will most likely continue to be a drag on growth in fixed-asset investment for many quarters to come. So, the only way for fixed-asset investment to show double-digit percentage growth in the second half of 2020 is for infrastructure investment to grow much faster still. Such an outcome would be nothing new in China. In the middle of 2009, for example, infrastructure investment grew at an annual rate of 50%, owing to the CN¥4 trillion ($570 billion) government stimulus package introduced in November 2008. Only since 2018 has infrastructure investment growth fallen rapidly to low-single-digit rates, largely as a result of deliberate policy choices. Today, Chinese policymakers should draw several lessons from the implementation of the 2008 stimulus package. One of the most important is that infrastructure investment should be financed mainly by issuing government bonds, rather than by bank loans to subnational authorities through so-called LGFVs (local government financing vehicles). China still has sufficient financial resources to support a big infrastructure investment drive, but this time

the central government should be responsible for funding the bulk of it. When the Chinese government announced early this year that it was aiming for a total budget deficit in 2020 of CN¥3.76 trillion, equivalent to 3.6% of GDP, it implicitly assumed that nominal GDP would grow by 5.4%. This is now obviously unrealistic, so budget revenues will be lower than forecast. And if the government does not cut expenditure, China’s fiscal position may worsen rapidly in the second half of 2020. But if the government decides to reduce spending to prevent the deficit from increasing, the economy may grow by less than 2.5%. That would make it impossible for China to create as many jobs as planned, and would also significantly increase its financial vulnerability. The Chinese government is therefore likely to face a dilemma in the second half of this year. If it loosens fiscal policy, public finances will worsen significantly. But if it cuts expenditure to offset the revenue shortfall, growth will be lower, with dire consequences. In my view, China should be firm in adopting an expansionary fiscal policy aimed at accelerating economic growth. The government should issue more bonds to

finance additional infrastructure investment, and the People’s Bank of China should adopt various policy measures to facilitate this, including quantitative easing (QE) if necessary. The resulting problems – a worsening fiscal position and a rising debt ratio – can be dealt with later. Chinese policymakers should never forget Deng Xiaoping’s famous maxim that “development is the only hard truth.” And right now, China urgently needs a growth boost.

Yu Yongding, a former president of the China Society of World Economics and director of the Institute of World Economics and Politics at the Chinese Academy of Social Sciences, served on the Monetary Policy Committee of the People’s Bank of China from 2004 to 2006. Copyright: Project Syndicate, 2020. www. project-syndicate.org

MONDAY JULY 27, 2020

Feature

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The Open Secret to Reopening the Economy BY ANNE O. KRUEGER

The future of the world economy is becoming clearer. At the outset of the pandemic, there were lively disagreements over whether the lockdown and other measures were warranted, or whether the economic costs were too high. Now, it is increasingly evident that economic activity will resume fully only after lockdown restrictions have been given time to work. Otherwise, COVID-19 will continue to spread, making a sustained and rapid economic recovery all but impossible until the arrival of effective, widely available vaccines. When the coronavirus first began to spread beyond China, triggering an immediate, sharp reduction in the level of economic activity and employment where lockdowns were imposed, epidemiologists tried to educate the public (and the authorities, in many cases) about what would come next. They warned that the virus would not be sufficiently contained until its R number –the average number of people infected by a sick person – is less than one. At exactly one, each sick person infects one other, and the number of COVID-19 cases remains constant over time. An R number below one, scientists explained, could be achieved much faster with tighter restrictions and effective testing and contact tracing to isolate positive cases. In locations where shelter-inplace orders and other measures have been all-encompassing, outbreaks have been stabilized, and the R number has dropped within just two or three weeks. In some places, COVID-19 cases surged exponentially early on, leading to self-quarantine being more common. And because a high percentage of people in hotspots complied with the lockdown recommendations and tracing and testing (likely out of fear), the epidemic curve was quickly dampened. By contrast, in locations where lockdown restrictions were initially mild or nonexistent, fewer people took steps to avoid contact or prevent transmission of the virus, or were more casual about such precautions, and cases duly increased. To be sure, additional location-specific factors have influenced the spread of COVID-19. But the clear takeaway from around the world is that the scope of lockdown restrictions, and the degree to which they are followed, is the single-most important factor in weathering and then recovering from the pandemic.

Unfortunately, in the United States, in particular, popular resistance to restrictions mounted just when continued public compliance was needed. Some politicians and commentators insisted that the economic costs of saving a life were too high relative to the costs inflicted on those suffering a loss of income or medical care for other conditions. This burst of public pressure won the day. Despite epidemiologists’ warnings, the initial lockdown restrictions were relaxed too soon in many US states. Worse, as soon as these reopenings began, many people returned immediately to their old habits, ignoring recommendations for social distancing, avoiding crowds (especially indoors), wearing a mask, hand washing, and other preventive measures. Factories reopened, and many retail establishments and other services resumed operations, albeit at reduced capacity. For a short time, output and consumer spending rose significantly, and the unemployment rate started falling (though it remained high). But in most cases, these reopenings started with an R number close to or above one, which guaranteed that as soon as people started relaxing precautionary measures, the number of infections would begin to rise again. The result is a lose-lose scenario. Current conditions are conducive to neither a sustained improvement in economic activity nor a sustained reduction in COVID-19 cases. If health workers, medical equipment, and testing capacity had been available and properly allocated, public-health

authorities might have been able to undertake contact tracing and quarantining on a level sufficient to curb the spread of the virus. That is what happened in countries like Germany, New Zealand, and South Korea, as well as in cities like New York, which has gone from being the hardest-hit place in the US to achieving an R number of around 0.4-0.5. For testing to be effective, results must be provided quickly, to alert carriers of the virus who might otherwise come into contact with others. The problem is that testing materials and equipment have been in short supply, especially in hotspots. Now that the R number is rising at an alarming rate, some US hospitals are already overwhelmed, and, with their workers falling ill, some reopened factories have had to close again. The authorities in highly affected southern and southwestern states are already reversing their earlier relaxation of restrictions and imposing additional ones. But even in places where people have adhered to precautionary measures and the R number has not risen significantly, the growth rate of consumption has started to decline. Consumers simply cannot be confident that any reopening will be sustained, and businesses see too much uncertainty to commit to longer-term investments. The tragedy is that if the lockdowns had been effective and enforced everywhere, a quick V-shaped recovery would have been entirely possible. But that didn’t happen, and now the recent upswing appears to be faltering. The best hope for the global economy is that everyone will

recognize that the epidemiologists were right all along. The premature relaxation has inflicted unnecessary additional costs, both in terms of health and economic wellbeing. Public adherence to restrictions on a scale sufficient to bring R number below one would be the best form of economic stimulus imaginable. An R number well below one would mean that when restrictions were removed, consumers and businesses could have confidence that the resulting economic (and health) upturn would continue. A return to normal economic and social activity would happen quite rapidly. The twin goals of defeating the virus and reviving the economy are not contradictory but rather one and the same. The virus will dictate the pace at which we can safely resume economic activity. And it is the public’s adherence to preventive measures that will determine the pace at which the virus is defeated.

Anne O. Krueger, a former World Bank chief economist and former first deputy managing director of the International Monetary Fund, is Senior Research Professor of International Economics at the Johns Hopkins University School of Advanced International Studies and Senior Fellow at the Center for International Development at Stanford University. Copyright: Project Syndicate, 2020. www. project-syndicate.org

MONDAY JULY 27, 2020

Market Watch BY AGYEI SAMUEL OFOSU

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USD/JPY • STRUCTURE • Bullish Henry-David Harmonic Pattern • PREVIOUS/FORECAST • USDCAD formed a bullish Henry-David Harmonic pattern with PRZ around the 106.40 price zone • Expecting price to buy to around 107.60 price region

**Current price @ time of analysis:106.362

EUR/USD STRUCTURE • Impulsive wave PREVIOUS/FORECAST • The Euro completed waves i,ii,iii and iv of its 5 wave leading impulsive move. • Expecting price to sell from around 1.1800 price region as price completes wave v to begin its correction

**Current price @ time of analysis: 1.16111

GBP/USD STRUCTURE • Impulsive wave PREVIOUS/FORECAST • GBPUSD is currently in formation of an impulsive wave having completed waves i,ii,iii, and iv. •

Expecting buy continuation to around 1.30500 price region as it completes wave v to begin its correction

**Current price @ time of analysis: 1.27385 THE OPPORTUNITIES AND FUTURE OF THE 6.5 –TRILLION DOLLARS FOREX TRADING INDUSTRY IN GHANA

industry in Ghana. People are learning the skill in trading to position themselves for available opportunities after this industry is regulated soon.

Forex (in simple terms, currency) is also called the foreign exchange, FX or currency trading. It is a decentralized global market where all the world’s currencies trade with each other. It is the largest liquid market in the world.

Opportunities in the Retail Forex Industry

The liquidity (more buyers and sellers) and competitive pricing (the spread is very small between bid and ask price) available in this market are great. With the irregularity in the performance in other markets, the growth of forex trading, investing and management is in upward trajectory. In Africa, there were about 1.3 million Traders before the corona pandemic season. This number has increased to almost 2million during this pandemic period due to the volatility of the market and the opportunities it brings. This has created a lot of jobs and income for these traders. In Ghana, the number of traders and introducing brokers have increased significantly during this corona season and after SEC expressed interest in regulating the retail forex trading

Forex Market Analyst/Currency Researcher/ Currency Strategist A forex market analyst, also called a currency researcher or currency strategist, works for a forex brokerage and performs research and analysis in order to write daily market commentary about the forex market and the economic and political issues that affect currency values. These professionals use technical, fundamental and quantitative analysis to inform their opinions and must be able to produce high-quality content very quickly to keep up with the fast pace of the forex market. Both individual and institutional traders use this news and analysis to inform their trading decisions. Forex Account Manager/Professional Trader/Institutional Trader If you have been consistently successful trading forex on your own, you may have what it takes to become a professional forex trader. Currency mutual funds and hedge funds that deal in forex trading need account managers

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and professional forex traders to make buy and sell decisions. Institutional investors such as banks, multinational corporations and central banks that need to hedge against foreign currency value fluctuations also hire forex traders. Some account managers even manage individual accounts, making trade decisions and executing trades based on their clients’ goals and risk tolerance.

create proprietary trading platforms that allow users to access currency pricing data, use charting and indicators to analyze potential trades and trade forex online

Forex Industry Regulator

Signal Service Providers

Regulators attempt to prevent fraud in the forex industry and can hold multiple roles. Regulatory bodies hire many different types of professionals and have representatives in numerous countries. They also operate in both the public and private sectors. The Securities and Exchange Commission (SEC) will be the government retail forex regulator in the Ghana.

These are forex institutes/academy that provide trade calls recommendation to inexperienced investors at a fee.

Forex Exchange Operations, Trade Audit Associate and Exchange Operations Manager Forex brokerages need individuals to service accounts, and they offer a number of positions that are basically high-level customer service positions requiring FX knowledge. These positions can lead to more advanced forex jobs. Forex Software Developer Software developers work for brokerages to

Forex training & mentorship for (but not limited to) individuals, hedge fund institutions, and money and asset managers Pro Chart Analysis MAM/ PAMM

Introducing Broker These are institutions or individuals who work as partners with brokers. They refer clients to brokers for commissions paid on the spread.

To be able to work in any forex hedge fund/ proprietary trading firm, forex institute or forex brokerage in Ghana, one will need a forex license to meet the criteria to be employed. Individuals can also start their own forex company from home with little or no capital if they have the skill to trade. It’s however my opinion that, one should enroll in a forex skill course to position himself/herself for these great opportunities at Gold Forex Institute (www.goldforexinstitute.com). Requirement is a high School certificate, a laptop/Smart Phone with Internet since it’s a skill set program.

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MONDAY JULY 27, 2020

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Feature

Health-Tech Snake Oil BY LEEZA OSIPENKO

rmed with big-data analytics, machine learning, and other novel methods, US Big Tech firms are getting into the health-care game, promising vast improvements in health outcomes and efficiency. What could possibly go wrong? In an interview with the Wall Street Journal earlier this year, David Feinberg, the head of Google Health and a self-professed astrology buff, enthused that, “If you believe me that all we are doing is organizing information to make it easier for your doctor, I’m going to get a little paternalistic here: I’m never going to let that get opted out.” In other words, patients will soon have no choice but to receive personalized clinical horoscopes based on their own medical histories and inferences drawn from a growing pool of patient records. But even if we want such a world, we should take a hard look at what today’s health-tech proponents are really selling. In recent years, most of the United States’ Big Tech firms – along with many startups, the Big Pharma companies, and others – have entered the health-tech sector. With big-data analytics, artificial intelligence (AI), and other novel methods, they promise to cut costs for struggling health-care systems, revolutionize how doctors make medical decisions, and save us from ourselves. What could possibly go wrong? Quite a lot, it turns out. In Weapons of Math Destruction, data scientist Cathy O’Neil lists many examples of how algorithms and data can fail us in unsuspecting ways. When transparent data-feedback algorithms were applied to baseball, they worked better than expected; but when similar models are used in finance, insurance, law enforcement, and education, they can be highly discriminatory and destructive. Health care is no exception. Individuals’ medical data are susceptible to subjective clinical decision-making, medical errors, and evolving practices, and the quality of larger data sets is often diminished by missing records, measurement errors, and a lack of structure and standardization. Nonetheless, the big-data revolution in health care is being sold as if these troubling limitations did not exist. Worse, many medical decisionmakers are falling for the hype.1 One could argue that as long as new solutions offer some benefits, they are worth it. But we cannot really know whether data analytics and AI actually do improve on the status quo without large, welldesigned empirical studies. Not

only is such evidence lacking; there is no infrastructure or regulatory framework in place to generate it. Big-data applications are simply being introduced into health-care settings as if they were harmless or unquestionably beneficial. Consider Project Nightingale, a private data-sharing arrangement between Google Health and Ascension, a massive nonprofit health system in the US. When the Wall Street Journal first reported on this secret relationship last November, it triggered a scandal over concerns about patient data and privacy. Worse, as Feinberg openly admitted to the same newspaper just two months later, “We didn’t know what we were doing.” Given that the Big Tech companies have no experience in health care, such admissions should come as no surprise, despite the attempts to reassure us otherwise. Worse, at a time when individual privacy is becoming more of a luxury than a right, the algorithms that are increasingly ruling our lives are becoming inaccessible black boxes, shielded from public or regulatory scrutiny to protect corporate interests. And in the case of health care, algorithmic diagnostic and decision models sometimes return results that doctors themselves do not understand.1 Although many of those pouring into the health-tech arena are well-intentioned, the industry’s current approach is fundamentally unethical and poorly informed. No one objects to improving health care with technology. But before rushing into partnerships with tech companies, health-care executives and providers need to improve their

understanding of the health-tech field. For starters, it is critical to remember that big-data inferences are gleaned through statistics and mathematics, which demand their own form of literacy. When an algorithm detects “causality” or some other association signal, that information can be valuable for conducting further hypothesisdriven investigations. But when it comes to actual decision-making, mathematically driven predictive models are only as reliable as the data being fed into them. And because their fundamental assumptions are based on what is already known, they offer a view of the past and the present, not the future. Such applications have far-reaching potential to improve health care and cut costs; but those gains are not guaranteed.1 Another critical area is AI, which requires both its own architecture – that is, the rules and basic logic that determine how the system operates – and access to massive amounts of potentially sensitive data. The goal is to position the system so that it can “teach” itself how to deliver optimal solutions to stated problems. But, here, one must remember that the creators of the architecture – the people writing the rules and articulating the problems – are as biased as anyone else, whether they mean to be or not. Moreover, as with data analytics, AI systems are guided by data from the current health-care system, making them prone to replicating its own failures and successes.1 At the end of the day, improving health care through big data and AI will likely take much more trial and error than techno-optimists

realize. If conducted transparently and publicly, big-data projects can teach us how to create high-quality data sets prospectively, thereby increasing algorithmic solutions’ chances of success. By the same token, the algorithms themselves should be made available at least to regulators and the organizations subscribing to the service, if not to the public. Above all, health-care providers and governments should remove their rose-tinted glasses and think critically about the implications of largely untested new applications in health care. Rather than simply giving away patient records and other data, hospitals and regulators should shadow the tech-sector developers who are designing the architecture and deploying experimental new systems. More people need to be offering feedback and questioning the assumptions underlying initial prototypes, and this must be followed by controlled experiments to assess these technologies’ real-world performance.1 Having been massively overhyped, big-data health-care solutions are being rushed to market in without meaningful regulation, transparency, standardization, accountability, or robust validation practices. Patients deserve health systems and providers that will protect them, rather than using them as mere sources of data for profit-driven experiments.

Leeza Osipenko is Senior Lecturer in Practice in the Department of Health Policy at the London School of Economics and Political Science.

MONDAY JULY 27, 2020

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Veep inaugurates Ghana Infectious Disease Centre Vice President Dr Mahamudu Bawumia, on Friday, commissioned a 100-bed Ghana Infectious Disease Centre (GIDC) for treatment and management of COVID-19 and other infectious diseases in the country. The ultra-modern facility worth US$7.5 million was funded by the Ghana COVID-19 Private Sector Fund, which saw 536 patriotic and industrious Ghanaians constructing the project, to support government’s efforts in combating the COVID-19 pandemic. The first ever GIDC facility located at the Ga East Municipal Hospital, comprised a level three Biomedical laboratory, a 21-bed Intensive Care Unit, a dispensary, a triage unit, waiting areas, nurses station, VIP and general wards and a medical gas house, was constructed through the collaboration of civilian and military engineers, planners and architects within three months. It is expected that the three ecological zones, that’s the Coastal, Middle Belt and Northern would have similar facilities, and would be constructed in Takoradi, Kumasi and Tamale respectively. Vice President Bawumia, in an address, said with the sacrifices,

dedication and ingenuity exhibited by Ghanaians, the government had decided to award the 88 district hospitals, six regional hospitals in newly created regions and a psychiatric hospital would be awarded to local contractors.

He recounted the various strategies and interventions rolled out by the government to contain the spread of the virus. Dr. Bawumia believed that with the necessary support Ghanaians could do, might exploit to move

the nation’s development efforts forward. Dr. Bernard Okoe Boye, a Deputy Minister of Health, on his part, said the President Akufo-Addo’s government had shown leadership in containing the COVID-19 pandemic, which had seen between 87 and 90 per cent recoveries and 0.5 per cent mortality rate. He said the COVID-19 was “visible but not invincible” and believed that should Ghanaians adhere strictly to the safety and preventive etiquettes, “we would defeat the disease.” Corporate entities and individuals contributed between 66 pesewas and GH¢10 million to the Ghana COVID-19 Private Sector Fund. President Akufo-Addo on April 17, 2020, cut the sod for the construction of the Ghana Infectious Disease Centre. The structure was designed jointly by the Built Environment Professionals made up of the Ghana Institute of Architects, Engineers, Surveyors and Planners, the Ghana Armed Forces and Specialists Consultants from the Ministry of Health and the Noguchi Memorial Institute for Medical Research.

Huawei opens free online 5G course for UG students Huawei Technologies, as part of efforts to develop and grow Ghana’s ICT talent pool, has opened a free online 5G training course to some Engineering and Computer Science students at the University of Ghana. Huawei Technologies, as part of efforts to develop and grow Ghana’s ICT talent pool, has opened a free online 5G training course to some Engineering and Computer Science students at the University of Ghana. The initiative, which is currently benefitting 70 university students, forms part of Huawei’s broader agenda to develop over two million IT Professionals over the next five years while fulfilling the ICT giant’s commitment to the government of Ghana to train over 5000 Ghanaians in ICT by 2024. A statement issued in Accra by the Company said it was also the first major training under the recent MOU agreement between Huawei Ghana and the Ministry of Education to offer professional ICT training and hands-on experience to selected tertiary institutions in Ghana. On the theme, “Debunking the 5G Myth”, the two weeks intensive online course would seek to equip the participants with

fundamental understanding of the key requirements, capabilities and usage scenarios of 5G and the key innovations behind it, while guiding the participants to identify the various opportunities offered by 5G. “Participants will also be aware of issues and challenges confronting 5G deployment,” it said. . Mr Kweku Essuman Quansah, Deputy Managing Director for Huawei Ghana, reiterated the relevance of the course, saying “we have been hearing about the promises of 5G wireless: greater networking capacity, throughput up to 10 times faster, better connectivity and more secure access.” He said as with most new technologies, there was a lot of excitement about the capabilities and the short course was intended to equip Universities Students and assist them in understanding 5G technology, from the perspective of technology, standards, regulation, policy, economy, society and environment. Mr. Quansah said as a Company with over 30 years’ experience in the ICT ecosystem and the global leader in 5G, Huawei believes in knowledge transfer.

“Giving these student the opportunity to learn, appreciate and embrace the 5th Generation Telecommunications Technology is one of our key goals of giving back to society through knowledge transfer,” he added. Dr. Abdulai Jamal, the Head of Department of Computer Science at the UG, said there was the need for industry to collaborate with academia to prepare the students for the future. He said “for a country to develop, it is necessary for educational institutions and the industry to collaborate. It is important students brainstorm widely and come up with novel solutions using 5G technology.” The instructor for the training, Mr. John Mwasi, who will be conducting the class remotely from Windhoek, Namibia encouraged the students to make an effort to be punctual.

Mr Joshua Eyram Wordey, Huawei ICT Academy student Ambassador and a level 300 Computer Science Student at the UG, thanked Huawei Ghana for the opportunity. “We are very grateful to Huawei for giving us this opportunity, 5G is the future of technology and as students we will do our best to utilize and apply what we are learning in this class to contribute positively to society,” he said. Globally, Huawei cooperates with more than 600 universities to set up Huawei ICT academies, helping the universities improve their ICT teaching abilities. In Ghana, Huawei has partnered with UG and over 10 top Ghanaian Universities as authorized Huawei ICT Academies and has trained over 3000 students in latest ICT technologies. The Huawei 5G online class will run from 22nd July to 31st July, 2020. GNA.

MONDAY JULY 27, 2020

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NBSSI disburses GH¢57.1m to 64,196 small businesses BY NII ANNERQUAYE ABBEY

Finance Minister Ken OforiAtta has revealed that more than 64,000 small businesses have received financial support to help alleviate the economic impact of the COVID-19 pandemic. Presenting the mid-year budget review statement last week, Mr. Ofori-Atta said GH¢57.1m has been given out as micro loans as part of the Coronavirus Alleviation Programme (CAP) Business Support Scheme run by the National Board for Small Scale Industries (NBSSI). The Minister stated that the average amount disbursed was GH¢889.80. The amount disbursed so far is less than 10 percent of the GH¢600m scheme designed to support micro, small and medium enterprises (MSMEs) under government’s GH¢1.2b Coronavirus Alleviation Programme. The scheme had received more than 700,000 applications as at June 26. The applicants submitted requests for assistance totalling GH¢7.6bn, with microbusinesses accounting for GH¢5.2bn of the aount. Small businesses support

Under the scheme, government, through the National Board for Small Scale Industries (NBSSI), and in collaboration with business and trade associations and selected commercial and rural banks, is rolling out a soft loan scheme with a one-year moratorium and two-year repayment period for MSMEs.

The scheme established the Adom Micro Soft Loans for micro enterprises which are being disbursed through Vodafone mobile money. The Anidasuo Soft Loans, targeted at small and medium enterprises, will be disbursed through participating financial institutions. According to the Minister,

through the scheme, tax identification number (TIN) registration in Ghana increased from approximately 110,000 a month to 815,449 from May 19 to June 30, thereby supporting government’s agenda to formalise the informal sector.

0.9 percent growth is positive indication – Pwc BY NII ANNERQUAYE ABBEY

Business advisory firm PriceWaterhouseCoopers (PWC) says Ghana’s revised projected growth rate of 0.9 percent for 2020 is a positive indication yet given that most economies have slipped into recession under the weight of the COVID-19 pandemic. Senior Country Partner of the firm Vish Ashiagbor commenting on the mid-year budget review delivered by the Finance Minister last week stated that it is remarkable that the economy is still able to grow amidst the adverse impact of the pandemic. Ghana’s economy was previously forecasted to grow at 6.8 percent but the emergence of the virus and its attendant impact on businesses, among others, saw that growth rate readjusted to reflect the difficulties. Mr. Ashiagbor in Pwc’s review of the mid-year budget said: “While the reduction in growth is significant, it is at least a positive indication that the economy is not expected to contract in 2020, as is the expectation in many other economies across the world.” Deficit woes

Mr. Ashiagbor stated that before the pandemic set in, the PWC was hopeful government will buck the trend of the fiscal slippages that usually characterise the election years. He said while the revision to the fiscal deficit announced by the Minister was inevitable, the sheer size, 11.4 percent, poses significant long-term risks to the economy. “More significant levels of growth are expected to return over the next four years and the fiscal deficit is expected to narrow over the same period, reaching 3.8% in 2024. Clearly, barring any unforeseen windfalls in the short to medium term, it will be a long hard road to recapture the gains made over the last few years that have been wiped by the impact of the pandemic,” he said. The PwC Country Senior Partner argued that the next few years will require a concerted effort by both public and private sector operators to rebuild what has been lost in the short term. Businesses and individuals, he noted, should plan to continue to tighten their belts, re-strategise and adjust in order to survive and

hopefully thrive, notwithstanding the pandemic. “It is not all bad news, in that the rebuilding efforts offers another opportunity for economic policy makers, the managers of the economy an businesses and individual to introduce new thinking and innovation into the rebuilding process such that our economy and businesses emerge from this pandemic in a more resilient and more diversified manner,”Mr. Ashiagbor added.

He said it is encouraging to see some manufacturing companies quickly repurpose their operations to produce personal protect equipment (PPEs), hand sanitisers and other items useful in the pandemic era. “This a clear and encouraging demonstration of the innovation and capacity that exists locally and what is perhaps one positive outcome of the pandemic,” the PwC country chief added.

MONDAY JULY 27, 2020

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Government negotiating with IPPs for cheaper power BY BENSON AFFUL

Government is hopeful of reaching agreement with the 15 independent power producers (IPPs) to ensure power efficiency and cost savings for the country, the mid-year budget statement has revealed. The statement, presented by Finance Minister Ken Ofori-Atta on Thursday, said a task force set up by the government as part of the Energy Sector Recovery Programme (ESRP) has carried out detailed and holistic legal and financial analyses of 15 operational and near-operational power projects within the government’s cost-reduction considerations. “The team has entered into consultations with each of these 15 IPPs and tabled various strategic interventions and solutions to achieve efficiencies and cost savings for the country,” Mr. OforiAtta said. He said the energy sector is facing significant financial challenges due to the uncoordinated approach to procuring additional generation capacity, which has led to excess generation capacity beyond the acceptable reserve margin. Considering the financial

implication of this development, government in 2019 decided to rationalise Power Purchase Agreements (PPAs) with IPPs and placed a moratorium on further development and expansion of thermal power generation in the country. The IPPs said last week that they are owed about US$1.4bn for power supplied as of June 30, 2020. The Chamber of Independent Power Producers, Distribution Companies and Bulk Consumers, the umbrella body for the IPPs, said its members have resorted to “costly loans to sustain their generation.” President Akufo-Addo, delivering his 4th State-of-the-Nation address to Parliament earlier this year, bemoaned the situation where the government paid nearly US$1bn for unused power in the last two years due to excess electricity contracted on a take-or-pay basis with IPPs. Take-or-pay power generation contracts are common in the energy industry and oblige the offtaker (government, in this case) to pay for power supplied by the producer irrespective of available demand.

The payments over the last two years, which were financed with proceeds from loans, have compounded the country’s debt problems, coming on the back of an expensive financial system rescue that has so far cost the state more than GH¢21bn. The government has consequently been holding talks with the IPPs to renegotiate or restructure the expensive power purchase contracts, hoping that a successful outcome would ease the debt burden in the energy

sector. Mr. Ofori-Atta said one of the strategies the government has adopted to reduce the cost of buying power from the IPPs is to ensure a centralised arrangement for procuring, stocking and supplying back-up fuel to thermal IPPs to further reduce overall costs. The government also plans to further reduce the IPPs’ capacity charges over the life of their respective projects, he added.

Alain Nkontchou appointed chairman of Ecobank Transnational Inc. Pan-African banking group, Ecobank, has appointed Alain Nkontchou, a Cameroonian independent non-executive director of the bank, as board chairman of its holding company, Ecobank Transnational Incorporated (ETI), with effect from 30 June 2020. He replaces Nigerian Emmanuel Ikazoboh, whose six-year tenure ended on June 30 having reached the retirement age of 70, and in accordance with ETI’s Articles of Association. “I’m honoured to be appointed as Chairman of Ecobank Transnational Inc. having served on its Board since 2015, I have seen Ecobank’s resilience and its proud history, built on strong foundation to secure the Bank’s future success. I look forward to working with the Board and Executive team as we continue our journey ahead and I know that we are well-placed to navigate through the current environment and set the standards in financial

services for our customers across Africa,” Mr. Nkontchou said of his appointment in a statement issued on the Ghana Stock Exchange. He also thanked his predecessor for his leadership of the board and wished him well in his future endeavour. Ade Ayeyemi, Chief Executive Officer of Ecobank Group, in welcoming the new chairman, indicated management’s continued support in ensuring the realisation of the strategic imperatives of the Ecobank Group. “Mr. Nkontchou has always utilised his wealth of experience on the Board and we look forward to his successful and strong leadership,” he said. Alain Nkontchou is the Managing Partner and co-founder of Enko Capital Management LLP, an asset management company based in London and Johannesburg, which focuses on African investment opportunities. Mr. Nkontchou was an advisor at Laurent Perrier champagne, having been a non-executive director from 1999 to 2009. He was Managing Director of Credit Suisse’s Global Macro

Trading Group in London between 1995 and 2008 and also at JP Morgan Chase & Co. in the same capacity. Between 1989 and 1994, he was with Chemical Bank in Paris and New York, where he became Vice- President, Head of Trading and Sales. He has a track record of business

success, having generated significant dollar revenues for each of these top tier institutions and boasts an MSc in Electrical Engineering from Supélec and P.M. Curie University, Paris, and an MSc in Finance and Accounting from ESCP (Ecole Supérieure de Commerce de Paris).

MONDAY JULY 20, 2020

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