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MONDAY JUNE 7, 2021
Infinix launches NOTE 10
Special Report on Entrepreneurship
Celebrating business owners, innovators, and job creators
See page 5
Inside
BUSINESS24.COM.GH
NO. B24 / 205 | NEWS FOR BUSINESS LEADERS
MONDAY MONDAY MAY JUNE 3, 2021 7, 2021
Ghana’s Covid-19 fiscal accountability limited, says new report T G
Mining industry wants incentives for exploration
By Eugene Davis ugendavis@gmail.com
he President of the Ghana Chamber of Mines, Eric Asubonteng, has called for an incentive package for mining companies to encourage exploration and sustain minerals production in the country.
By Henry G. Martinson
hana’s level of accountability in the early fiscal policy response to COVID-19 has been described as limited by the International Budget Partnership Group. In a report entitled “Managing COVID Funds– The Accountability Gap”, the group stated that “the main finding from our research is that governments are falling short of managing their fiscal Cont’d on page 2
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Prez Akufo-Addo receiving his jab
Debt market remains bullish By Joshua Worlasi Amlanu macjosh1922@gmail.com
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ctivity on the Ghana Fixed Income Market (GFIM), the market for fixed-income securities such as bonds, notes and bills, continued to increase as volumes traded for the year so far reached GH¢92.35bn, up 128 percent when compared to the same period last year. Cont’d on page 2
AfDB, SEC sign deal to enhance risk-based supervision for capital market
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he African Development Bank Group and the Securities and Exchange Commission (SEC) have signed a $400,000 grant agreement to develop a riskbased supervisory solution Cont’d on page 5
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Cont’d on page 2
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Editorial / News
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Editorial
Procurement breaches alarming!
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tatistics from the Ghana Institute of Procurement and Supply (GIP) indicates that the nation has lost about GH¢11.8billion to procurement breaches between 2015 and 2019. This were largely as a result of poor supervision, poor internal controls that led to fraudulent procurement activities in most of our public institutions. This is sad to say the least, especially for a nation that is in dire need of revenue to shore up its social investment. As a matter of urgency, the issue of blocking the seepage in the use of public finances should be a critical measure to revamp economic activities for a nation that is still reeling from the harsh
scourge of the global pandemic. Procurement breaches is one of the key areas that needs to be addressed to save the country from financial distress, much so in these perilous times. The coronavirus pandemic has been a major blow that has disrupted businesses, education, health and other critical areas and getting there sectors up and running will require the prudent use of our meagre resources. This, therefore, not the time for wanton mismanagement of the public purse in the procurement of goods and services by our state institutions and agencies. We cannot continue to experiment with square pegs in round holes and this paper
therefore sides with the GIPS on its call to have trained procurement officers supporting the control of public expenditure. President of the institute, Collins Agyemang Sarpong, has been pushing for the licensing of the procurement practice as a way of putting practitioners in both private and public institutions in check. A licensed practitioner, he said, will be conduct his or activities in the most ethical manner for fear of having the license revoked. This is a noble call that must be given the requisite consideration in the broader interest of promoting sound and value-based procurement in the country.
Ghana’s Covid-19 fiscal accountability limited, says new report Continued from cover
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policy response to the crisis in a transparent and accountable manner”. “More than two thirds of the governments we looked at, across many regions and income levels, have only provided limited or minimal levels of accountability in the introduction and implementation of their early fiscal policy responses,” the group said. Ghana is among 55 countries whose level of accountability was found to be limited out of the 120 countries surveyed. The others are Afghanistan, Angola, Argentina, Armenia, Azerbaijan, Bolivia, Bosnia and Herzegovina, Botswana, Cameroon, China, Côte d’Ivoire, Czech Republic, Dominican Republic, Ecuador, El Salvador, Georgia, Guatemala, Honduras, Jordan, Kazakhstan, Kenya, Lesotho, Liberia, Macedonia, Madagascar, Malaysia, Mali, Mexico, Moldova, Mozambique, Namibia, Nepal, Nicaragua, Niger, Pakistan, Papua New Guinea, Romania, Russia, Rwanda, Senegal, Serbia, Somalia, South Korea, Spain, Sri Lanka, São Tomé e Príncipe, Thailand, Timor-Leste, Togo, Trinidad and Tobago, Uganda, Ukraine, Vietnam, and Zambia. According to the report, “by the end of 2020, governments had already mobilised US$14tn in fiscal policy responses of different types. These included additional spending measures, tax relief programmes, and loans and loan
Ken Ofori-Atta, Finance Minister
guarantees—all aimed at funding necessary health services, addressing income losses, and keeping economies afloat.” The report cited Australia, Norway, Peru and Philippines as the only countries whose level of accountability in early COVID-19 fiscal policy responses was adequate, whilst Bangladesh, Brazil, Bulgaria, Canada, Chile, Colombia, Costa Rica, Croatia, Fiji, France, Germany, Indonesia, Italy, Jamaica, Japan, Kyrgyz Republic, Mongolia, New Zealand, Nigeria, Paraguay, Poland, Portugal, Sierra Leone, Slovakia, Slovenia, South Africa, Sweden, United Kingdom, and United States were cited as showing “some” accountability. Among the 120 countries covered, 22 published information on policy initiatives specifically targeted towards women (this includes pregnant or lactating women, female entrepreneurs, female heads of households, victims of domestic violence, etc.), but only three (Canada, the Philippines and Sweden) included a Gender Impact Assessment of their COVID-19 response. Some African countries that were cited as examples of good practice include Sierra Leone,
where the Audit Service used realtime auditing approaches honed during the Ebola crisis to publish a report on COVID-19 spending that led to the Anti-Corruption Commission taking up a number of investigations and detaining top government officials. And in Togo, the government set up a cash transfer programme that gave more money to women than men. The report recommended that governments should publish monthly progress reports on policy implementation (or regularly update implementation information on web portals), including data and analysis on budget execution and performance, disaggregated by impact on disadvantaged groups, including women and girls. It further urged governments to “disclose all details related to procurement contracts linked to emergency spending, wherever possible in open formats whilst restoring the role of legislatures as keepers of the public purse, including approving expenditures, consulting with the public and interest groups, monitoring policy implementation, and following up on audit findings.”
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Debt market remains bullish Continued from cover The market ended the month of May with a closing volume of 16.45bn, representing a 3.41 percent increase from last month and an 85 percent increase compared to the same period last year, according to data from the Ghana Stock Exchange. Kojo Addae-Mensah, the Chief Executive Officer of Databank, the money manager, said in an interview with Business24 that although the debt market is currently very vibrant, it is mostly driven by government securities, with only few corporate bonds listed. “There is still a lot of work to be done on the side of corporate bond listing. For the secondary market to be trading around GH¢80bn before half year, it speaks volumes. But I feel sad because economies don’t grow on the back of debt, but rather on the back of equities,” he added. The slower growth of equities “has been as a result of the risky
Ekow-Afedzie, MD, GSE
nature of the equities market and the high rates coming from government of Ghana bonds”, he explained. Following three years of negative returns to investors, the equities market has rebounded this year, with a year-to date
return of 24.73 percent at the end of May as measured by the GSE Composite Index. Trading activity on the Ghana Stock Exchange was high during the month, driving the value of shares traded to GH¢72.7m, the highest in the year so far and
representing a month-on-month increase of 134 percent. Investor confidence is bouncing back with companies such as Goil, GCB Bank, SG Bank, Enterprise Group, and Standard Chartered recording gains in their share prices.
Mining industry wants incentives for exploration Continued from cover Exploration is the single most critical activity that guarantees continuous production of minerals and discovery of new mineral resources to supplement production from existing mines or replace output of mines whose economic ore body is exhausted. Speaking at the 93rd Annual General Meeting of the Ghana Chamber of Mines, which was held virtually, Mr. Asubonteng said: “It is therefore crucial to put in place an incentive scheme that will reduce the cost associated with exploration and attract the required critical investments into this high-risk business of mineral exploration.” He explained that minerals exploration investment in Ghana has declined significantly in recent years, describing it as alarming for a country to which mining is critical for foreign exchange and fiscal revenue generation. “We urge government to exempt exploration companies from payment of VAT on bigticket cost items such as drilling and laboratory services,” he said. “Effectively, the extent of actual exploration activity is diminished by upfront costs such as VAT on inputs and landholding costs. Thus, relieving the usually illiquid exploration companies from the
Eric Asubonteng, President of the Ghana Chamber of Mines
payment of VAT as well as reducing the cost of landholding would not only improve their cash flow and reduce their operational costs but also enhance Ghana’s image as a competitive destination for exploration investment.” According to him, in the long run, this will guarantee continuous mineral production and flow of fiscal and foreign exchange receipts as well as other benefits from the minerals sector. He also urged government to increase the host communities’ share of mineral royalties to 30
percent and earmark this for specific sustainable infrastructure projects in those communities The CEO of the chamber, Sulemanu Koney, stated that the chamber is hoping to organise the next edition of the Mining and Energy Summit next year. “It is our expectation that with the ongoing vaccination, the chamber would be able to organise the next edition of the Ghana Mining and Energy Summit, a flagship event for the mining and energy sectors, in 2022. Such interactive platforms
are key to educating the populace on developments in the mining sector and related national issues.” The Minister for Lands and Natural Resources, Samuel Abu Jinapor, touched on the need to support local entrepreneurs and build local capacities to capture the commanding heights of the mining industry. He added that government is committed to developing a robust mining sector and regards it as key in the accelerated development of the country. The total volume of gold produced in Ghana declined by about 554,000 ounces (12.1 percent) to 4.023m ounces in 2020 despite the windfall in gold prices, the chamber’s 2020 annual report showed. The report said in 2021, the chamber expects most of its gold producing member companies to recover from the drags that characterised their operations in 2020. Overall, the gold output of producing member companies of the chamber for 2021 is forecast to range between 3m to 3.3m ounces. The industry also expects production of manganese by Ghana Manganese Company to increase with a sustained full year of production in 2021.
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Infinix launches NOTE 10
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nfinix has launched the all-new NOTE 10 series at a spectacular event at the Movenpick Ambassador Hotel, Accra. This new portfolio of premium smartphones includes the NOTE 10, Note 10 Pro. Showcasing a super fluid display, powerful MediaTek gaming processors, cuttingedge artificial intelligence (AI)powered camera and optimized 5000mAh battery with fastcharge technology, the NOTE 10 series is crafted to enhance and optimize work and entertainment experiences for everyone. According to the brand ambassador for Infinix Ghana, Shatta Wale: “Infinix smartphones are super trendy. Their designs are ultra-modern with impressive battery and memory capacities which makes them suitable for all user groups. The iF Design 2021 awardwinning NOTE 10 Pro delivers a balance between the physical and virtual worlds, the calmness and serenity of Mother Nature and the modern geometric interiors and décor designs of luxury brands. The back panel is uniquely divided into two sections with the bottom half completely textured in juxtaposition with the glossy top. The design is available in
four colors: 95° Black, 7° Purple, Emerald Green (exclusive to NOTE 10) and Nordic Secret (exclusive to NOTE 10 Pro). A Stunning Visual Experience
The NOTE 10 series creates the perfect viewing experience with a 6.95” full high definition (FHD+) display, and a 91% screento-body ratio with 480 nits of peak brightness and 1500:1 color contrast ratio for sharp, crystal clear visuals. Graphics and images seamlessness glide due to the 90Hz refresh rate and 180Hz touch sampling rate, which is perfect for watching movies, scrolling content or gaming. Certified by TÜV Rheinland for low blue light, users will enjoy hours of use without suffering from eye fatigue and discomfort. The NOTE 10 series delivers stunning professional-quality images and beautiful nightscape imagery, both in daylight and at night. To capture amazing selfies, the NOTE 10 series is equipped with a 16MP AI Beautify Selfie front-facing camera with two frontal flashes. The NOTE 10 Pro is also loaded with an intuitive AI-powered four-in-one lens comprising 120° field of view (FOV) ultra-wide angle, super macro lens, 5P lens, black and
white lens and portrait lens, which are all integrated into a rear-facing 64 megapixels (MP) 6P ultra night camera. For ultra-smooth and effortless filming, the NOTE 10 series also offers 4K resolution shooting capabilities in both the front and rear cameras using leading video-enhancement algorithms from Imint’s Vidhance Video Stabilization solution and autoblur video shooting. Now, users can capture their breathtaking moments with confidence. Ace broadcaster Kwame Sefa Kayi had his say about the Infinix Note 10 series. ‘’This is my first experience with an Infnix device and I must confess
that I am very impressed. I am particularly fascinated by the Note 10 series’ stunning design as well as its smooth navigation. I strongly recommend the Infinix Note series to anyone looking to purchase a powerful and classy smartphone. You’ll absolutely enjoy it.’’ The Note 10 will be available in three (3) storage variants namely; (4GB ram + 64GB ROM, 4GBram + 128GBrom and 6GBram + 128GBrom, priced at GHS 873, GHS 963 and GHS 1053 respectively. Whiles the NOTE 10 pro will be available in 8GB ram + 128GB ROM storage capacity and will sell at GHS 1313.
AfDB, SEC sign deal to enhance risk-based supervision market participants in Ghana, development. for capital market “The collaboration with including securities issuers and Continued from cover for Ghana’s capital market. The grant from the African Development Bank’s Capital Markets Development Trust Fund will finance the provision of technical assistance and capacity building for the SEC, the markets regulator and the Ghana Stock Exchange. The project will enhance the SEC’s institutional capacity and readiness to transition from a compliance-based to a risk-based supervision approach for the securities market. It will also enable the development and streamlining of policy and regulatory frameworks for pooled funds, and support the broadening of market instruments through the introduction of products such as asset-backed securities. Rev. Daniel Ogbarmey Tetteh, Director-General of
SEC, commended the African Development Bank for supporting the development of a risk-based solution to bolster the Commission’s capacity to fulfill its mandate. The objectives of the project align with the priorities of the Bank’s Country Strategy for Ghana which envisages measures to stimulate capital market development and unlock financial resources that will advance Ghana’s industrialisation, the private sector and infrastructure
the Securities and Exchange Commission to promote an enabling regulatory and supervisory environment with diversified financial market products and instruments is timely. This support demonstrates the Bank’s desire for a deepened and broadened financial system – a driver of investment and economic growth in Ghana,” said Ahmed Attout, Manager of the Bank’s Capital Markets Development Division. The project will benefit capital
investors and also help to broaden available products and structures for savings and investment. Ekow Afedzie, Managing Director of the Ghana Stock Exchange, expressed his appreciation to the Bank and noted that the project had come at an opportune time when the stock market planned to introduce new products to deepen the market and improve liquidity. “Thus, the introduction of the new products will boost investor confidence and achieve the ultimate goal of making the Ghana Stock Exchange a preferred investment destination in the sub-region,” Mr Afedzie said. The Securities and Exchange Commission will cooperate closely with the Ghana Stock Exchange and other market stakeholders to implement the project. GNA
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How to start an MLM business
Estimated Entry Package Cost
Entry Level Position
Weekly Performance Bonus %
250ghs to 700ghs (minimum/student packages) 1,100ghs to 1,500ghs
Q-Silver (10pvs to 60pvs)
8%
Silver (120pvs minimum) 2,000ghs to 2,500ghs Gold (240pvs minimum) 7,200ghs to 8,000ghs Platinum (720pvs minimum) 13,000ghs to 15,000ghs VIP (1,680pvs minimum) Kindly note that the above earnings are based team.
Estimated Performance Bonus in GHS within 12 Months 30,000ghs to 44,000ghs
8%
88,000ghs +
10%
200,000ghs +
12%
400,000ghs +
12% + 1%
800,000ghs+
the performance of your organizational
In Longrich for example, there are also investment franchise opportunities as follows: Franchise/Investment Packages Local Franchise/Stockist
Regional Franchise/Stockist (25 VIP) Country/Super Franchise Stockist (50 VIP+)
M
ulti-level Marketing/ Network Marketing has come to stay with us in this generation, and is gradually taking over the business platform of marketing. Perhaps it will soon become the business of the future. Thus, everyone seeking to secure a better means for financial freedom should consider looking into MLMs to bring that dream to a reality. Before partnering there are certain factors to consider, which were discussed in the previous episode. After looking into these factors, you need to take the bold decision- to join. So how do you start an MLM? • Select an Entry Level Package Every MLM company has some standard packages required to be purchased at the initial stage of joining. Each package usually comes with what is called product/point value (PV). These are points attached to every product package and these PVs get you started in the business and as well adds up to help you qualify for incentives awarded as you grow within the business. As per the company arrangements, the higher the package, the higher the PVs attached- therefore if you prefer to grow higher, faster in the business, it is best to start up with a higher package and build on from there. Below is an example of the entry packages
Entry Level Title 12,000USD15,000USD 55,000USD60,000USD
Monthly Rate of Return 6%
125,000USD300,000USD
10%
for Longrich, a highly renowned MLM Company and the best in the industry: • Select and order for products of your choice After selecting your preferred entry level package, you go ahead to select products of your choice that is worth the capital invested. If you join as a business partner, you should select products you are capable of marketing but don’t forget to at least sample all products of the company and give them a try yourself. Similarly, when you join as a consumer, you should select products you prefer to consume. This will raise your interest in the products you have and increases your ability to share your testimonies after joining. Most importantly, ensure that the point value (PVs) for the selected products (including any combo packages) total the minimum PVs required for your preferred entry position. • Ensure registration is created and make payments After selecting your products, you find a reliable sales point (Stockist) to assist you with the registration process or you can visit the company’s website (mylongrichbusiness.com). Once this is done, you make payments into the company account (don’t make payment into distributors personal bank account) and ensure your registration code is generated for you. This code is a code that verifies you as an official
8%
partner with the company and hence enables you to get any of the products from any reference point- a Stockist shop at the company’s wholesale price. • Get your products After this procedure is completed, which usually takes maximum 24hours, the next and last step with the registration is to receive your products. Usually, the Stockist has the products available at the reference point to issue to you immediately after the registration process is complete, however if this doesn’t happen for you, depending on the reference point you partner from, the products will be ordered from the Company’s main branch office, which usually takes maximum 1 week to receive your products. • Begin the journey After this is done and products are received, your MLM journey with the company has officially begun. This is where you begin to use the products, share with friends, family and or potential future partners for them to also consume the products. If you joined with the business motive, then this is where you as well use the products and recommend them to your potential customers/business partners to bring them on board (recruit). You repeat the same procedure when you recruit more business minded prospects/partners or even consumers, when they are
also positive to come on board. It is recommended that at least you get a minimum of three active partners to join your team of business partners or consumers. Then the networking journey and wealth creation begins. In conclusion, although these processes may seem undecided it must be noted that you must do a thorough research personally to ensure that you have identified the right MLM, the right team, and the Right leadership to guide you step by step until you find your solid grounds in the business. This will make your journey smoother and relaxing, as well as highly rewarding. I am personally a beneficiary from partnering with the right company, the right leadership and the right team, and I have not had any regrets whatsoever. I look forward to receiving and guiding you all my extinguished readers to come on board and let’s win together- for network marketing is the way forward for this generation and the generation of the future to come. Always speak to an independent consultant before of the industry before making huge investment into an MLM business. Author: By Kennedy Amoako (Chartered Accountant & Longrich Multiple Regional Franchisee)
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Sending money home could help finance Africa’s development
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s migrant remittances steadily become the largest source of incoming capital for developing countries, outstripping foreign direct investment and development aid,[i] African countries need to think more innovatively about leveraging these inflows for their development needs in a postCovid economy. Remittances – the money sent home by citizens working in other countries – are a financial lifeline for families in poorer countries, directly improving their living standards by enabling food purchases, access to better standards of education and healthcare as well as access to credit and investing in small businesses, while the multiplier effect indirectly benefits local economies through consumer spending and taxes. As the continent celebrates Africa Day this week (Tuesday, 25 May), remittances from migrant workers in the African diaspora across wealthier countries are helping families and communities in their home countries to meet their increased needs for livelihood support. Remittances sent by migrant workers to their home countries in sub-Saharan Africa in 2020 amounted to US$42 billion[ii] (R585.5 billion). These remittances could offer a “window of hope” for development against a backdrop of declining foreign direct investment (FDI) and foreign aid, says Dr Elizabeth Nanziri, Director of the African Centre for Development Finance at the University of Stellenbosch Business School (USB). However, she said for Africa to realise the value of remittances there was a pressing need to address the cost of sending money across borders, with sub-Saharan Africa’s payment corridors, and particularly the SADC region, the most expensive in the world.[iii] There is also a need for greater accessibility to digital payment platforms in Africa as these are consistently cheaper for sending money than non-digital means such as banks and post offices.3 “FDI and foreign financial assistance to developing countries is likely to continue declining post-Covid, and so Africa needs to be thinking innovatively about meeting its development finance needs, looking to how remittances could not only benefit the recipient families but also fund public services and development projects,” Dr
Nanziri said. While foreign aid was boosted by Covid-19 assistance to developing countries,[iv] the general trend is downwards; and already declining foreign direct investment (FDI) fell dramatically by 38% in 2020[v] due to the pandemic, and recovery is expected to be slow, she said. Meanwhile, defying expectations of a decline due to Covid-19, migrant remittances proved to be resilient and registered only a 1.6% worldwide decrease in 2020, although subSaharan Africa registered the largest downturn at 12.5%.2 The small global decline was far less than the more than 30% fall in FDI to low- and middle-income countries in 2020.2 Remittances had been expected to decline more significantly, due to migrants often working in service and hospitality sectors that were shuttered due to Covid-19 lockdowns as well as difficulties in accessing money transfer services due to mobility restrictions and shutdowns. However, fiscal stimulus in migrants’ host countries, resulting in better than expected economic conditions, was one of the factors that kept remittances flowing to their home countries.2 “Aid is not sustainable and leads to dependency, together with the repayment obligations that come with some forms of financial support to countries. Similarly, FDI is not without downsides and mixed evidence on its benefits, with some solid arguments that it tends to benefit the investor more than the recipient country. “The case for remittances is that, unlike the increasing trend with development aid, they have no repayment obligations. They go straight to the beneficiaries to pay for healthcare, education and food, increasing the ability of households to afford what
they need and bypassing the middle-man of government with its tendency to misuse funds and susceptibility to corruption,” Dr Nanziri said. She said there were several ways that developing countries could leverage the inflowing remittances to support national developmental needs and provide public services. “There is the aspect of the ‘wealth effect’, by which the multiplier effect of spending by individuals in the local economy increases overall taxable consumption and thus puts more money into the fiscus for public spending. “And, as it does for households, remittances may function as collateral and facilitate access to credit by sovereign borrowers by using future flows of remittances as security for lending in international capital markets,” she said. Dr Nanziri said that governments could take this positive effect further and draw on the willingness of migrant workers to collectively contribute to public goods in their home countries, as has been done in Latin American countries, with Ethiopia, Ghana and Zimbabwe the front-runners of this approach in Africa. Mexico, for example, introduced a “Three-for-One” programme whereby every dollar sent by migrants for public works in their communities is matched dollar-for-dollar by the municipal, state and federal governments. She said Zimbabwe had some success with the launch through its central bank of a remittance channel called Homelink, which aimed to reduce the cost of migrant remittances by openly competing in the money transfer market. The company has evolved over time to become an established financial services company offering multiple services such as mortgage loans, micro finance and real estate
development investments to the diaspora population who want to invest back home. Diaspora bonds are another avenue, she said, a newer concept in leveraging remittances for development, where a government issues fixed income securities to seek investment from expatriates for large public development projects. “This has been implemented successfully in India, Bangladesh, Pakistan, Lebanon, Sri Lanka and the Philippines for financing development projects, but despite mixed success in African countries to date, this is still a route with untapped potential,” Dr Nanziri said. Kenya and Nigeria have had some success, with Kenya raising US$190 million in 2009 for transport, energy and water projects, and Nigeria (which receives over 40% of remittances in sub-Saharan Africa) raised US$330 million for infrastructure projects in 2017. “Diaspora bonds work where migrants feel a patriotic duty towards their home country, have confidence in the government and are willing to invest a portion of their savings, and conversely a mistrust of governments due to poor governance and corruption counts against the successful issuing of a diaspora bond. “Ghana announced in 2020 that it aimed to raise US$3 billion for infrastructure development through a diaspora bond, but it has not yet launched, likely due to the economic repercussions of the pandemic, but it will be an interesting one to watch,” she said. Contact us for more information on the programmes offered by the University of Stellenbosch Business School (USB): Dr Marietjie van der Merwe USB Representative marie@globalnatives.com +230 606 2341 / +230 5 701 1362 Click on the link for more details on the programmes: https://www.usb. ac.za/academic-programmes/ Contact us for more information on the programmes offered by the University of Stellenbosch Business School (USB): Dr Marietjie van der Merwe USB Representative marie@globalnatives.com +230 606 2341 / +230 5 701 1362 Click on the link for more details on the programmes: https: //www.usb.ac .za/ academicprogrammes/
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Much to do to improve business environment for successful entrepreneurship By Nii Annerquaye Abbey
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he past year has been challenging for businesses, and even more arduous for small and medium-sized companies that likely did not have a business continuity plan or contingency plan in place before the pandemic. Although Covid-19 hammered the economy and created tough conditions for entrepreneurs, Ghana’s business operating environment was challenging even before the pandemic struck. This is seen in the World Banks’s Doing Business report, which, since 2003, has provided an objective measure of the quality of the business environment across 190 economies and selected cities at the sub-national and regional level. The 2020 report, which was based on operating conditions in 2019, ranked Ghana 118th out of nearly 200 countries for the ease of doing business. The performance was a deterioration from the 114th position the country occupied in 2019. As far as the ease of starting a business is concerned, Ghana ranked 116th out of 190 countries. Although the country has taken significant steps over the years to facilitate business registration, there is still a lot to improve, since the current situation does not befit a country positioning itself as the lead destination for foreign direct investment in the sub-region. The new Companies Act which
was passed in 2019 is a step in the right direction to streamline the business registration and operating environment. The Registrar-General’s Department is implementing a number of innovations, like online business registration and digital payments, that aim to simplify the business registration process. Recently, the Ghana Investment Promotion Centre (GIPC), the state’s chief business promoter, announced that it was liaising with other state regulators to set up a one-stop shop for investors seeking to establish in Ghana. This is expected to reduce the turnaround time for investors as they do not have to complete cumbersome mandatory requirements at various locations. Ghana’s ranking is relatively better on the ease of getting electricity (79th) and obtaining a construction permit (104th), but it does not do so well on the ease of paying taxes (152nd) and trading across borders (158th). Thankfully, important efforts are ongoing to address these problems. For example, the Ghana Revenue Authority (GRA), which collects the nation’s taxes, is digitising tax payments to reduce taxpayer costs and improve efficiency and convenience. While the ease of setting up a business is the most obvious measure of the ease of doing business, it is equally important for business owners to have a legal regime that ensures that
when things don’t go as planned, they are able to unwind their investment without much trouble. The Doing Business report’s “Resolving Insolvency” indicator basically measures the time, cost and outcome of insolvency proceedings involving domestic legal entities. Here, Ghana is ranked 161st, bettering the performance of only 29 other countries. This ranking is not encouraging, but it is encouraging to note that Parliament last year passed the Corporate Insolvency and Restructuring Act 2020 (Act 1015) to tackle this problem. According to Felix Addo, President of the Ghana Association of Restructuring and Insolvency Advisors (GARIA), the act provides a tool for companies in distress to restructure and turn their fortunes around; to preserve their going concern value, either with the same shareholders or new shareholders; to preserve as many jobs as possible; and to continue to play their part in the economic landscape. Hopefully, Act 1015 would improve on the insolvency regime and in the long term improve upon the country’s ranking. Even before the outbreak of the pandemic, the government was implementing a number of innovations to improve the business environment. These include the Digital Addressing System and mobile money interoperability. The lack of a structured address system has hampered
bank lending, for instance, and the digital addressing system should help financial institutions deal more confidently with customers, whose addresses can now easily be found. The mobile money interoperability innovation further deepens financial inclusion and opens up more opportunities for businesses as far as accepting digital payments is concerned. In the World Economic Forum’s latest Global Competitiveness Report (GCR), Ghana performed creditably on innovation and technological readiness. Although overall, Ghana ranked 111th out of 137 countries for its competitiveness, on innovation and technological readiness, it ranked 57th and 93rd respectively. Given the adverse impact of the pandemic, countries are priming themselves to attract the most investment to inject life into their ailing economies. And Ghana, like most of these countries, has a lot to do to boost both internal and foreign investment. The AfCFTA presents immense opportunities for the country’s post-pandemic recovery, but to take advantage of these opportunities, Ghana has to demonstrate it is indeed ready through a set of reforms that would transform the business environment to encourage successful entrepreneurship, business growth, and job creation.
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‘The secret to success is only one: perseverance’ Massimiliano Colasuonno Taricone, CEO of Casa Trasacco, Ghana’s most famous furniture company, shares his entrepreneurial nuggets of wisdom. Tell us briefly about your entrepreneurial journey up to the present time. I am an Italian/Ghanaian. My grandfather and my uncles emigrated to Ghana, and they were the founders of the Trasacco Group in 1968. I was born later. I did my school and university studies in law, and later in architecture and design in Italy. I have 30 years’ experience in my business, as I have always worked in the furniture design sector as sales director and export manager for the best Italian brands around the world. Then returning to Ghana about 20 years ago, I founded Casa Trasacco. Since the last five years, I have been proudly representing the Republic of Ghana in Italy as Consul. What is the Casa Trasacco company and brand known for? Casa Trasacco in Ghana is certainly known for the great quality of our furniture, the exquisite taste of our design, the customisation we give to each of our customers, the professionalism of our workers, the excellent after-sales service, and the great attention to detail that for me makes a difference. Convenience deserves a separate discussion. Many customers who do not know us asso-
ciate our name with real estate, so they think we are expensive. Actually, our motto is “Casa Trasacco, a part of all of us”. We have very competitive prices, quality products but, above all, respect for the money of our customers, which is why a product bought from us remains forever. This is the real convenience. Given your many years in entrepreneurship, what would you say are the strengths and weaknesses of the Ghanaian business environment? The strength of the Ghanaian business environment is that this is a developing market, in which there are many opportunities. But, above all, it gives you a second chance even when you make small mistakes. The weak point is a lack of respect for the rules, especially by companies that come from abroad for business who practise “catch and run away” through bypassing the rules and damaging all those who instead invest locally, including in the professional training of staff. What major changes are needed to make it easier to do business in the country? Better protection for those who work in Ghana in compli-
ance with the law and certainty for those who come to work in Ghana that they offer guarantees of long-term sustainability for fair competition. There should also be improvement in infrastructure to lower transport costs and travelling times throughout the country. What are your entrepreneurial values and principles, and how have they helped to keep your business going all these years? I never think I've reached the pinnacle of success. I question myself every day, I'm always looking for details that can be improved, I never turn back when faced with obstacles. If I am convinced that a goal can be reached, I do not take no for an answer. Above all, I always have a dream to realise and I am enthusiastic by nature. 2020 was a rocky year for most businesses because of the coronavirus pandemic. From your experience, what are the critical success factors to help a business navigate a crisis? Teamwork: a company is nothing without the people who work there. During the lockdown and the worst period of the pandemic, I always remained close to my staff. We had more time to talk
and discuss, and find new solutions. Although the period was not the best, we have not fired a single worker or missed any day of salary payment, even for the days that we have not worked. How can this country deepen the culture of entrepreneurship, especially to attract more young people into entrepreneurship? First of all, the school. There is a need for specialised professional courses for this. Companies must support these young entrepreneurs, giving them a way to experience mistakes. Sometimes the best investments are just on mistakes. Young people too must do their part, choosing different models of life. It is normal that today's digital young people are attracted by the “influencers” and easy earning, but they have to understand that that is not the way to be successful. Those are fake models. I often see influencers exhibit things to impress followers—the same things that they don't own and that they borrow just for the time of a photo. The secret to success is only one: perseverance. Believe in your dreams and don't take NO for an answer.
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The unique story of
Oheneba Kwabena Kena, CEO of KN Unique Communications
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heneba Kwabena Kena is the Chief Executive Officer of KN Unique Communications, a corporate events and multimedia company with top developed event brands including Ghana Agriculture and Agro Processing Awards/Expo, Ghana Accountancy and Finance Awards, National Customers Choice Awards, Ghana-West Africa Business Excellence Awards, West Africa Healthcare Excellence Awards, Ghana Business Standard Awards, and the Ghana International Products Awards / Expo. These special brands have engaged a lot of companies in Ghana and across the whole world. Oheneba immersed himself in accounting from a young age, making him one of the youngest chartered accountants in Ghana. He worked with some top banks in the country before he resigned to set up a top corporate events and advertising firm—which is
now a force to reckon with in the corporate events and advertising sector in Ghana and Africa. Oheneba takes pride in “propelling outstanding companies to the world” through KN Unique Communications while promoting Africa's world-recognised quality at all times. Integrity, Excellence, Stewardship, Service, and Innovation. These are the values that KN Unique Communications constantly strives to maintain. The company believes that personalisation is the key to success. For this reason, its events are always tailor-made in order to keep the customer at the heart of service delivery. The strengths of KN Unique Communications include: Catering to each client’s specific needs—reading through the lines of what the customer truly wants is not only a necessity, it is an art; Surprising the customer—for every event, KN Unique Com-
munications thinks differently. No event is the same, and this is what contributes to the company’s success; Communication and cultural differences—taking into account local culture and social norms while maintaining Ghanaian standards along the way is a true challenge. As an experienced entrepreneur, Oheneba Kwabena Kena has some useful tips for starting entrepreneurs. “Remember this: no matter what, the customer should always be at the core of your business. Spend time listening to customers’ satisfaction and feedback: if it is negative, talk to the customer and try to understand his point of view. Make sure to plan everything with them to avoid setting wrong expectations,” he says. “Timing is key! Planning is crucial to any business, but applies foremost to entrepreneurship. You need to be proactive and foresee any uncertainties. In events manage-
ment, anything could go wrong at any time and nothing should be taken for granted,” he adds. According to him, entrepreneurship can be a lonely journey. “This is why networking is key to building brand awareness and to learning as fast as possible in today’s ever-challenging world. Sometimes an unexpected meeting will boost you impressively, while on the other hand, people you hoped would support you end up pulling you down. Be ready for this and don’t take it personally. Just follow your own path and convictions.” He advises business owners to be ethical and consistent in everything they do. “Learn from failures: You will fail! But learning from your failures is the best way to progress and will help you to grow stronger. Finally, always remember what a ‘people’s business’ is all about: the essence of your company should always be human-driven.”
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How Kofi Asante Kwachie’s thirst for success led him to establish Unique Water Ltd Tell us briefly about your entrepreneurial journey up to the present time.
major changes are needed to make it easier to do business in the country?
regulates the sector, it would be a good business to venture into .
As a young graduate, I started the BOSANT ENTERPRISE in 2010, with the production of sachet water as well as laundry services, a 47-acre oil palm plantation, and a cement retailing business. Fruits from the palm plantation are turned into oil palm, which is then distributed to market, especially in Accra. However, our main focus is the Unique Water business.
Our strength has to do with easy access to materials used in the production of water bottles; however, the prices of these materials keep changing quickly, and this affects the turnover of the company. There are a lot of sachet water producers in the market, so it is very difficult to increase the prices of the product, since other producers are reducing their price in order to get more customers. This weakness has to really do with competition. There should be a regulatory body that would regularise operations within the sector. Currently, what happens is that once FDA [Food and Drugs Authority] gives approval for the safety of the production of the water, there is no other body to standardise operations in the sector. Although we have associations in the sector, they aren’t really working. So, if we should have a good body that
What are your entrepreneurial values and principles, and how have they helped to keep your business going all these years?
What is your company and brand known for? Currently, the company is mainly known for its production of Unique water sachet and bottled water for consumers. Given your many years in entrepreneurship, what would you say are the strengths and weaknesses of the Ghanaian business environment? What
What I believe in is that you should love whatever work you do and it should become your habit. Most often people engage in business just for the sake of money, but the business needs to become part of you as an entrepreneur. The leadership style is also good. I have a good working relationship with my employees, and this has really helped in making work easier. 2020 was a rocky year for most businesses because of the coronavirus pandemic. From your experience, what are the critical success factors to help a business navigate a crisis? 2020 wasn’t a good year. To
keep the company running, we had to lay off some staff. Key to the survival of the business was my deep entrepreneurial desire and attitude towards work. Now, with the pandemic receding, we have started recruiting some workers to augment the staff strength. How can this country deepen the culture of entrepreneurship, especially to attract more young people into entrepreneurship? In the university, we are only trained in the theory of entrepreneurship. I think it should be treated as a major course in the schools, where after studies students are made to start a business of their interest and are guided to establish them permanently. The youth should not finish the universities and still expect to be employed by the government; they should aim at working for themselves by starting a business.
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my skills and knowledge base. When the time came, I didn't apply for a job, I didn't attend any interview, in fact my bosses and superiors came looking for me on a weekend to give me an irresistible offer at the Trust Hospital. Training, passion and proper time management led me to start Eye Express. In no time, I realised I had too much time on my hands, my savings and investments had grown steadily, and I could contribute to making eye care services readily available, accessible and affordable. I had developed resilience to maintaining two jobs effectively and efficiently till today. Furthermore, these qualities enabled me fulfil my duties as a wife and a mother. I give all the attention and dedication to my family when it is needed. After the launch of Eye Express in 2012, family and friends eagerly offered money. They saw the passion, commitment and dedication, and were willing to support. I only accepted the needed amount and worked tirelessly to pay before the agreed period.
Vision and foresight—Founder and CEO of Eye Express
Dr. Naa Kowah Agyemfra’s journey to success Tell us briefly about your entrepreneurial journey up to the present time. Looking back, I realised that my entrepreneurial journey started in my tender ages observing my mother and what she did. After senior secondary school, I actually got involved with her bakery business. Innately, I developed some entrepreneurial skills, such as inventory and stock taking, negotiations, customer service, and sales and marketing. I registered my first business enterprise when I was in the university. I was super excited about it and put in a lot of work. However, I didn't achieve my expected growth and expansion. This was because my targeted market was only corporate organisations. This was a huge limitation. Also, I lacked the experience and technical know-how in attracting and doing business with corporate organisations. Furthermore, funding was a challenge for me. Securing capital
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for the needed equipment was extremely difficult. After a while, I sadly closed that chapter and decided to save and invest towards my future business venture. I started with my monthly upkeep money and my student loan. I concentrated on my academics and took keen interest in business seminars and fora on campus. Most of them were free and I took advantage of them and participated in as many as I could. After school, gaining more practical knowledge and professional experience became my focus. I identified some entrepreneurs and institutions in my industry that could align with my goal. When the opportunity arrived, I jumped at them. Wow, two jobs! I was paid for one and the other was for free. Bealet Optical Center paid me and Trust Hospital was for free. This I did passionately for two years. Bealet gave me the money needed for my upkeep and savings whilst Trust Hospital gave me the experience and improved
What is your company and brand known for? Eye Express brand is known as one of the best in primary eye treatment and education. The Eye Express brand stands for excellent customer service experience and care. In addition, Eye Express is the home of authentic, quality, trendy and fashionable frames and sunglasses. Given your many years in entrepreneurship, what would you say are the strengths and weaknesses of the Ghanaian business environment? What major changes are needed to make it easier to do business in the country? The Ghanaian business environment is blessed with many strengths. They include the relative ease to start a business. Secondly, there are many business opportunities that are yet to be harnessed. There are weaknesses as well. Difficulty to access capital and long cumbersome procedures in getting regulatory approval are some of the weaknesses. The procedures required for regulatory approval should be made simple and seamless. This will reduce quacks and fraud, and in the long run generate revenue for the nation. Also, this can help in getting a proper database for businesses and research works.
What are your entrepreneurial values and principles, and how have they helped to keep your business going all these years? Integrity, strong relationships, humility and respect are my core values. These values have gone a long way to sustain and propel the Eye Express brand both locally and internationally. Suppliers have extended credit lines even when I didn't ask. It is very refreshing to meet at international programmes and get suppliers to proudly introduce you and speak highly of you. These offer bigger opportunities. Clients and acquaintances become family. They in turn refer friends, colleagues and family to Eye Express. Our core values are exhibited in every little thing we do. The experience is unforgettable. 2020 was a rocky year for most businesses because of the coronavirus pandemic. From your experience, what are the critical success factors to help a business navigate a crisis? During the coronavirus pandemic in 2020, we appreciated life and living it. The safety of staff and clients were our greatest importance. We worked remotely and put in measures even before lockdown. By adhering to the prescribed protocols, all our staff were protected and our clients too. With innovation and adaptability, we came up with new services that increased customer safety and comfort. We also formulated some luxurious tailor-made services. And we increased our brand awareness and social media activities. We used those platforms to educate, entertain, encourage and inform the populace as well as market our services. How can this country deepen the culture of entrepreneurship, especially to attract more young people into entrepreneurship? The country can deepen the culture of entrepreneurship by making it very attractive and conducive for the youth. Entrepreneurial innovations should be outdoored and celebrated. We should train the youth on practical and life skills instead of theories. Finally, our financial sector should come up with products that will help the youth with capital and funding such that they will be empowered to take risks.
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Given your many years in entrepreneurship, what would you say are the strengths and weaknesses of the Ghanaian business environment? What major changes are needed to make it easier to do business in the country? My observation is that there are a lot of youth with university degrees without practical work experience. Without this practical experience, it becomes difficult and costly to train them and give them that exposure. Ghana needs a tax break for small business start-up to encourage more people into entrepreneurship. More training through the polytechnics would be ideal to make the youth workforce ready, and people’s work ethics need to change to boost productivity What are your entrepreneurial values and principles, and how have they helped to keep your business going all these years? Strong Customer Service, Honesty, Integrity, Time Management, and Supply of Quality Products have propelled Blag Ghana Ltd. to become the number one artificial grass company in the country. In 2020, The Ghana Business Standard award recognised our achievements and awarded us the outstanding artificial grass company in Ghana. We also received an award from the Ghana-West African Business Excellence Awards as the Outstanding Artificial Grass Supplier of the Year 2021.
Eddie Dankwa,
CEO of Blag Ghana and Paint & Tiles Ghana Ltd., on pioneering the commercial sale of artificial grass in the country. Tell us briefly about your entrepreneurial journey up to the present time. It started in 2012 when I stumbled across artificial grass while living and working in Australia. I flew down to Ghana the same year to conduct feasibility studies and confirmed that the product was not readily available on the market. I interacted with various stakeholders in the building and construction industry, who showed keen interest in using this innovative artificial grass in their projects. Upon return to Australia, I decided to pioneer the commercial sale of artificial grass in
Ghana. This led to the establishment of Blag Ghana Ltd. in 2013. The first consignment we brought to Ghana included a team of qualified artificial grass installers from Australia, who came to train our Ghanaian staff on how to install the product to international standard. The first consignment sat in our warehouse for a year without selling anything as we were told Ghanaians were not interested in artificial grass. But look around you today. It’s everywhere and there is demand for this product and many years to come due to our harsh climate and lack of water to keep our gardens manicured all year round.
Today, we have branches in Accra and Kumasi and just started a new company called Paints & Tiles Ghana Ltd. We supply all kinds of paint, including decorative paint and tiles, to the building industry. What is your company and brand known for? My company Blag Ghana Ltd. is known as the leading supplier of quality artificial grass in Ghana. We supply and install artificial grass suitable for football and multipurpose fields, playgrounds, homes and apartment landscaping, function centres, office buildings, etc.
2020 was a rocky year for most businesses because of the coronavirus pandemic. From your experience, what are the critical success factors to help a business navigate a crisis? The coronavirus pandemic slowed sales due to the lockdown. We adopted a new sales strategy using social media and telemarketing to manage the crisis. This allowed us to keep all our staff employed without any layoffs. How can this country deepen the culture of entrepreneurship, especially to attract more young people into entrepreneurship? The government and the banks need to institute a borrowing scheme with low interest rate to attract more individuals with business ideas but who lack funding into entrepreneurship.
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South Africa adviser urges shift to renewables to spur growth
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eplacing South Africa’s aging and inadequate electricity generation capacity with renewable energy plants is an opportunity to spur economic growth and cut emissions, the effective head of a presidential climate change commission said. While many countries face the problem of having to idle fossil fuel-fired power stations to meet climate commitments, many of South Africa’s decades-old, coal-fired plants are due to close anyway, said Valli Moosa, deputy chairman of the Presidential Climate Change Coordinating Commission. “We are an energy-short country. That’s our opportunity and that hole is only going to be filled by renewables,” he said in an interview at his Johannesburg home on May 28. “There is no shortage of appetite on the part of capital to invest in renewable energy in South Africa.” Eskom Holdings SOC Ltd, South Africa’s state-owned power company and a near monopoly, has subjected the country to intermittent outages for more than a decade, partly because of poor maintenance at its fleet of 15 coal-fired stations.
Attempts to have private companies build new coal-fired stations in the country have faltered because of the reluctance of banks to finance them. Shifting to renewables provides Africa’s most industrialized country with a chance to change its economic fortunes, said Moosa, who served as South Africa’s environment minister between 1999 and 2004. The country is the world’s 12th biggest source of the climate-warming gases. Growth Spurt The transition is “what’s going to give us the next big spurt of economic growth,” he said. “The commission is starting to look at how we can move the South African economy where it is to a low-emissions economy, because we have to. If we don’t we are not going to get the money to develop any other kind of economy, or businesses are going to become uncompetitive.” Moosa was appointed to the 22-member commission in December and effectively runs it, as its chairman is president Cyril Ramaphosa. The main purpose of the body “is to develop a national consensus on how the South
African economy moves from where it is currently to a zero emissions economy by 2050,” said Moosa. The first big issue the climate commission, which has had two meetings so far, will address is South Africa’s energy challenge, said Moosa. The commission has members from major polluters, Eskom and Sasol Ltd, as well as labor unions, non-governmental organizations and the cabinet. “It’s going to have to build consensus on how we reduce the carbon footprint of our energy industry and at the same time grow the energy supply and make it more dependable,” he said. As a first step in reducing the country’s emissions, the commission will meet on June 4 to make a recommendation on whether it supports the environment ministry’s proposed greenhouse gas reduction targets, known as nationally determined contributions, for 2025 and 2030. The proposal, to be submitted ahead of the United Nations Climate Change Conference to be held in the UK in November, estimates that to implement its targets the country will need to access $4.5 billion per year from multilateral and bilateral sources
by 2025, and $8 billion a year by 2030. A draft proposal released in March that improved on previous greenhouse-gas emission targets has been criticized by several environmental organizations for not being ambitious enough. Under the new targets, maximum emissions will not exceed 510 million tons of carbon dioxide equivalent units in 2025 and 440 million tons of carbon dioxide equivalent units in 2030. “There is scope for us to do much more to bring in capital, including concessionary type capital for this,” said Moosa, who helped establish two Johannesburgbased private equity funds and Lereko Investments Ltd. “There is capital that’s looking for these projects in countries like South Africa, and remember that we are a developing country, we are in Africa, we are disadvantaged etcetera, etcetera.” Writer: Donald Marshall Company: Mframadan Energy Management & Research Institute (M.E.M.R.I). Contact: 00233-24-4550854 Email: donaldamus@yahoo.com Original Source: BusinessTech
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Strategic infrastructure asset planning and risk management: A policy consideration for government and MMDAs
By Elias E. Acquah CAMA, CPAM, CSSBB
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ook at Ghana’s infrastructure assets and it becomes apparent that we need several positive shifts in the way we plan, deliver, operate, and maintain our infrastructure. Infrastructure is only as good as the user outcomes it delivers. How we have planned, funded, and delivered infrastructure is not achieving best practice. Each decision to build infrastructure can impact taxpayer and user bills for generations. It is essential we get these decisions right to improve the quality, affordability, and access to our infrastructure. The cost of infrastructure across all sectors is a concern for every Ghanaian. However, people’s perceptions on the scale of infrastructure cost rises do not always align with what they are paying. Infrastructure costs are regressive and hit lowest income households hardest. Infrastructure projects are getting larger and increasingly complex and will require new approaches. How the Government make decisions, selects contract models and handles risk will have significant bearing on the functionality and efficiency of our infrastructure. Alongside these changes, new demands for sustainability, resilience and security will provide opportunities to achieve better outcomes. Looking to the future, we face an unprecedented period of uncertainty. The compounding issues of a changing climate, the re-ordering of the world economy, and increasing political
polarization are reshaping global institutions and norms. Closer to home, our population is growing and changing, the structure of the economy is shifting, our communities and environment are experiencing weather extremes, and rapid technology change is fundamentally reshaping our dayto-day lives. As a result, Ghana finds itself at a unique point in its history with significant implications for how we plan for our future infrastructure. Infrastructure is central to our quality of life. But looking to the future, user needs are evolving, and it is highly likely, in coming decades, our infrastructure will look very different to today. We need to evolve the way we plan for Ghana’s infrastructure to embrace this uncertainty. Historically, infrastructure planning has sought to predict future conditions and then provide infrastructure to meet anticipated demand. Today, we require a more robust approach. Rather than projecting forward the status quo, our infrastructure planning should set an ambitious vision for the country, anticipate, and adapt to change, manage risk, and deliver infrastructure that works towards – rather than against – the current and future needs of Ghanaians. The time is right to reconsider how we deliver, operate, and maintain infrastructure, and how we can adapt existing networks to our changing user needs.
has become a major point of contention in infrastructure debates. In our largest cities, ageing assets have been put under growing strain, with rising road congestion, and growing demands on social infrastructure, such as health and education etc. • Energy affordability has also deteriorated over recent years. • In telecommunications, services have not met the expectations of many users. • In the water sector, the past years have seen mixed results. While there has been some improvement in some MMDAs, however many areas are suffering from growing water security fears The good news is that there are many opportunities amid these challenges. Proper infrastructure planning, operations and maintenance could unlock future growth and development, and improve quality of life or productivity beyond the status quo. This distinction between challenges and opportunities is important to ensure infrastructure planners and proponents identify and progress infrastructure solutions that not only keep pace with Ghanaian’s aspirations and demands but create the potential to unlock step changes into the future. This context of uncertainty must form the foundational principle for Ghana’s Infrastructure.
In other areas, ongoing challenges remain, and new issues have emerged:
At a National Policy Summit in Accra on May 17, 2017, the Vice President noted that “Ghana infrastructural asset are not properly recorded, managed and
• Population
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Way Forward
are underutilized”. Consequently, we miss several opportunities such as the monetization of our infrastructural assets – at least at the MMDAs level. An example would be using it as collateral to source for funding. The first step is to conduct an audit of Ghana’s infrastructure. This will provide the lens through which we can assess the current capacity of our existing infrastructure assets and identify the challenges and opportunities we face in the coming - say 10-20 years. The audit will identify infrastructure planning and decision making that falls short of consistent best practice. Additionally, it will also identify the mounting risks for Ghana’s infrastructure from changes in technology, the economy, user preferences and the environment Additionally: • It will provide a comprehensive assessment of the quality and capacity of individual infrastructure assets • Provide information about the most significant issues for each asset type • Guide and frame discussions for policy makers • Create a platform for the further analysis needed to support future decisions. • Stakeholder Involvement Stakeholders play important role in defining expectations and sustainability of infrastructure asset.
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A curse worse than cash
By Kenneth Rogoff
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ansomware – a type of malicious software that restricts access to a computer system until a ransom is paid – is not a good look for cryptocurrencies. Proponents of these digital coins would rather point to celebrity investors such as Tesla founder Elon Musk, Dallas Mavericks owner Mark Cuban, star football quarterback Tom Brady, or actress Maisie Williams (Arya in Game of Thrones). But recent ransomware attacks, and cryptocurrencies’ central role in enabling them, are a public relations disaster. The attacks include last month’s shutdown of the Colonial Pipeline, which drove up gasoline prices on the US East Coast until the company paid the hackers $5 million in Bitcoin, and, even more recently, an attack on JBS, the world’s largest meat producer. Such episodes highlight what for some of us has been a longstanding concern: difficult-to-trace anonymous cryptocurrencies offer possibilities for tax evasion, crime, and terrorism that make large-denomination bank notes seem innocuous by comparison. Although prominent cryptocurrency advocates are politically connected and have democratized their base, regulators cannot sit on their hands forever. The view that cryptocurrencies are just an innocent store of value is stupefyingly naive. Sure, their transaction costs can be significant enough to deter most ordinary retail trade. But for anyone trying to avoid stringent
capital controls (say, in China or Argentina), launder illicit gains (perhaps from the drug trade), or evade US financial sanctions (on countries, firms, individuals, or terrorist groups), crypto can still be an ideal option. After all, the US government has for many decades turned a blind eye to the role its $100 bills play in facilitating weapons purchases and human trafficking, not to mention undermining poorcountry governments’ ability to collect tax revenues or maintain domestic peace. Although Bitcoin and its crypto variants have by no means surpassed the dollar in facilitating the global underground economy, they are certainly on the rise. As even top US financial firms seek to offer crypto options to their clients, one might well ask what people are investing in. Contrary to frequent claims that there is little use for cryptocurrencies in transactions and no underlying business, there is a thriving one: aside from being a bet on dystopia, cryptocurrencies offer a way to invest in the global underground economy. If governments will ultimately have to increase dramatically their regulation of crypto transactions, why have cryptocurrency prices in general, and the price of Bitcoin in particular, soared (albeit with headline-grabbing volatility)? Part of the answer, as economic theory tells us, is that with interest rates at zero, there can be massive and sustained bubbles in intrinsically worthless assets. Moreover, crypto investors sometimes argue that the sector has become so big, and attracted
so many institutional investors, that politicians will never dare regulate it. Perhaps they are right. The longer it takes for regulators to act, the harder it will be to get private digital coins under control. The Chinese and South Korean governments recently started cracking down on cryptocurrencies aggressively, although it is not yet clear how determined they will be. In the United States, the financialindustry lobby has been relatively successful in holding back meaningful regulation of digital assets; witness the recent retreat to the US of Facebook’s digital-currency project in the face of global regulatory pushback orchestrated by the Swiss authorities. True, US President Joe Biden’s administration is now, at least, moving to force reporting of cryptocurrency transfers of over $10,000 as part of its efforts to collect a larger share of taxes owed. But, ultimately, reducing the potential liquidity of hardto-trace crypto will require a high level of international coordination, at least in advanced economies. In fact, that is one argument for why a cryptocurrency such as Bitcoin might justify its lofty value of about $37,000 at the end of May (although its price changes like the weather). If Bitcoin is an investment in the transactions technology underpinning the global underground economy, and if it takes many decades for even advanced economies to rein in the currency, then it can earn a lot of rents from transactions in the meantime. After all, we do not
have to expect a company to be in business forever – think fossil fuels – for it to have significant value today. Of course, there will always be a market for cryptocurrencies in war-torn countries or pariah states, although their valuations would be much lower if coins could not be laundered into rich countries. And perhaps there are technologies for stripping away anonymity and thereby removing the main objection to cryptocurrencies, though one suspects that would also undercut their main selling point. No one is arguing against the blockchain technology that underpins cryptocurrencies and has vast potential to improve our lives, for example, by providing a trusted tamper-proof network for monitoring carbon dioxide emissions. And although operating the Bitcoin system itself requires enormous energy consumption, there are now more environmentally friendly technologies, including those based on “proof of stake.” Unfortunately for those who have invested their life savings in cryptocurrencies, ransomware attacks that target growing numbers of firms and individuals could prove to be the turning point when regulators finally develop some backbone and step in. Many of us know people whose small, struggling companies have been decimated by such extortion. While governments may have better cryptocurrency-tracking tools than they let on, they are in an arms race with those who have found an ideal vehicle for making crime pay. Regulators need to wake up before it’s too late.
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providers etc.
MMDAs must maintain relationships with the government, community, as well as with its elected officials. Asset planning and risk management spans multiple generations and must include all stakeholders. The real challenge is the risks that asset management programs and plans are exposed to without the cooperation of these internal and external stakeholders. Planning for infrastructure requires input from internal stakeholders, multi-sector partners, and other external stakeholders. In planning infrastructure assets, MMDAs must identify all stakeholders and their relationship with the asset portfolio. Not engaging these stakeholders could expose them to significant financial risks such as unrealized returns from underutilized assets, or assets that must be prematurely retired because they cannot comply with changing circumstances. Strong participation by external stakeholders will provide a better picture of long-term demand for services; help MMDAs understand emerging risks; and support the development of asset systems that are resilient. Internal and external stakeholders who must work together to improve infrastructural asset could include, relevant Government appointees, MCE/DCEs, relevant ministries, chiefs, communities, Contractors, independent service
Social, Roads and Water Infrastructural Assets Social infrastructure The challenges and opportunities Ghanaian’s face in accessing affordable, high quality social infrastructure has been a concern in the context of substantial increases in demand for services and facilities as our population grows and ages. The demands placed on education infrastructure, from childcare and pre-school through to tertiary and vocational levels. Our parks, green spaces, and some past known community facilities are no more Roads Road transport is by far the most important means of moving freight in Ghana and is the sector that requires the greatest consideration. Roads carry about 95% of passengers and 98% of the country’s freight. According to a World Bank report, Ghana’s road transport indicators are strong. By almost all measures, they are well ahead of those found among low-income peers and nearing the levels expected of a middle-income country. But some challenges remain. Road conditions are still problematic. Urban congestion remains a particular problem in the main centers. Water
Water services in some parts of the country do not meet an acceptable standard. Population growth risk severe challenges to our water infrastructure. There are significant barriers and costs for delivering safe and reliable water and wastewater to all Ghanaians. Without action, these barriers could drive further inequality and undermine progress towards national targets and commitments. Infrastructure Asset Policy Consideration Clearly, the Government and MMDAs must improve the framework of how asset is planned, operated, and maintained to deliver sustainable level of service. While some of the challenges are external, majority are in the purview of Government and MMDAs. One of the tools that can be employed is a strategic asset management policy or regulation as practiced by other countries. As an example, an asset management regulation will mandate all MMDAs to develop and maintained a life cycle strategic asset management plan that describes: • The principles to be followed by the MMDAs in its asset management planning, design, operations, maintenance, and funding • The process by which the asset management plan is to be considered in the development
of the MMDAs budget or of any long-term financial plans of the MMDAs that consider municipal infrastructure assets. • The MMDAs approach to continuous improvement and adoption of appropriate practices regarding asset management planning. • The expected levels of service for each of the MMDAs infrastructure assets Additionally, MMDAs shall be required to: • Post its current strategic asset management policy and asset management plan on a website that is available to the public and shall provide a copy of the policy and plan to any person who requests it. • Conduct an annual review of its asset management progress on or starting the year after the municipality’s asset management plan is completed Elias E. Acquah is the Managing Director and Principal Consultant at Assured Reliability Technologies Ghana Limited, a Physical Asset Management and Performance Improvement Consulting Firm. He is a certified Asset Management Practitioner and Auditor. He is a member of the Institute of Asset Management, UK, Asset Management Council, Australia and the Society of Maintenance and Reliability Professionals, U, S.A. eliasacquah@gmail.com
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