Business24 Newspaper 24th May, 2021 by Business24 Online

MONDAY MAY 24, 2021

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NO. B24 / 199 | NEWS FOR BUSINESS LEADERS

Gov’t earmarks GH¢1.9bn for asphalt overlays countrywide

MONDAY MONDAYMAY MAY3,24, 2021 2021

Naa Lamle Orleans-Lindsay

GIPC targets onestop shop for FDI registration By Nii Annerquaye Abbey abbeykwei@gmail.com

he Ghana Investment Promotion Centre (GIPC) says it is working with other business regulatory agencies to create a one-stop registration portal for investors seeking to set up in the country. Cont’d on page 3

‘Entrepreneurship, MSMEs pivotal to Ghana’s recovery post-Covid’ By Patrick Paintsil p_paintsil@hotmail.com

By Eugene Davis ugendavis@gmail.com

he Minister for Roads and Highways, Kwasi Amoako-Attah, has stated that government has

earmarked GH¢1.92bn from now to 2024 to undertake 1,500 kilometres of asphalt overlays in major towns and cities. Ghana, the Minister said, has a road network spanning 78,000 kilometres, with only

ECONOMIC INDICATORS EXCHANGE RATE (INT. RATE)

POLICY RATE

14.5% 14.77%

OVERALL FISCAL DEFICIT

11.4% OF GDP

AVERAGE PETROL & DIESEL PRICE:

4.2% GHC 5.13

Cont’d on page 2 INTERNATIONAL MARKET

US$1 = GHC 5.7606

GHANA REFERENCE RATE PROJECTED GDP GROWTH RATE

23 percent paved. Research shows that overlays improve ride quality, reduce noise levels, and reduce the full life cycle costs of road surfaces.

o fast-track the recovery of Ghana’s economy postCovid, the government must support micro, small and medium enterprises through structured funding, improved capacity and exposure,

BRENT CRUDE $/BARREL NATURAL GAS $/MILLION BTUS GOLD $/TROY OUNCE

CORN $/BUSHEL

$543.75

COCOA $/METRIC TON

$123.55

COFFEE $/POUND:

Cont’d on page 3

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Editorial / News

MONDAY MAY 24, 2021

Editorial

Covid jabs the way to go

he country last week commenced the final dose of the Covid vaccine to persons that took their first jabs a few months ago. The second and final dose of the vaccine suffered undue delay largely due to the unavailability of vaccines. The global vaccine production has suffered from a general low manufacturing capacity as well as a deadly wave of infections sweeping through India, one of the leading manufacturers of Covid vaccines. Despite the delay in making the second jabs available, President Nana Akufo-Addo, in his latest address on measures taken to combat the virus insists that government remains committed to ensuring that nearly 20

million Ghanaians are inoculated by year’s end. Given that the rebound of the economy depends largely on the vaccination, it is important that mass public education that heralded the first phase of the exercise must be sustained and possibly enhanced as the inoculation programme begins to extend to the larger population. There is no denying that there is a significant number of Ghanaians who are skeptical of the vaccine and its so-called side effects if any. Whereas the basis for this skepticism may be unfounded, it could still have a telling impact on how the overall vaccination plan turns out. The devastation as seen in countries like the USA, Spain, Italy, Brazil, and now India,

indicates how debilitating the virus could be. Nevertheless, it has been established that the vaccines available are crucial to averting such calamity. The more people get vaccinated, the less room for the virus to move and mutate. Beyond the comprehensive awareness creation, citizens equally have to take it upon themselves to convince their relatives and friends to get vaccinated. This paper believes that despite the country’s relatively low infection rate, the battle is far from won and every citizen has a role to play in keeping the virus at bay. And one of such proven ways is to keep to the approved protocols and receiving the jab when it becomes available.

Gov’t earmarks GH¢1.9bn for asphalt overlays countrywide Continued from cover

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Once an asphalt surface ages, it is likely to become cracked and unstable. An asphalt overlay restores the surface’s ability to handle heavy traffic on its smooth, sealed surface. Taking his turn at the weekly Minister’s Press Briefing on Sunday, and speaking on the topic “Improving Ghana’s Road Network”, Mr. Amoako-Attah

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Kwasi Amoako-Attah

said from 2017 to May 2021, 1,301km of asphalt overlays were constructed, but the vision now is to increase it to 1,500km between now till the end of the second term of the New Patriotic Party administration. He also indicated that the construction of town roads is on course, with a total of 88 lots pencilled to be carried out at a cost of GH₵1bn. Already, some town roads at Gambaga, Nalerugu and

Walewale have been completed, with others ongoing across the country. Under the US$2bn Sinohydro facility, 10 lots of 441km at a cost of US$500m have been programmed for construction, the Minister revealed. On the construction of interchanges, he said 25 have been programmed but 20 are expected to be done. He also disclosed that in the last four years, GH¢10bn have been paid to contractors by the government.

MONDAY MAY 24, 2021

GIPC targets one-stop shop for FDI registration ongoing.

Continued from cover Currently, investors are required to complete a number of registration processes that involve agencies such as the RegistrarGeneral’s Department, Ghana Revenue Authority, and Social Security and National Insurance Trust (SSNIT), among a host of

others. But speaking at a media orientation workshop last week, Naa Lamle Orleans-Lindsay, Head of Legal, GIPC, said the process to register foreign direct investment with the centre could be laborious due to the sheer number of regulatory agencies involved. “We are working closely with

our other stakeholder agencies to share our database and streamline the process to reduce the tediousness and the cost involved,” Mrs. Orleans-Lindsay added. Although she didn’t give a timeline regarding when the onestop registration portal will be completed, she insisted work is

Yofi Grant, CEO -- GIPC

Even spread of FDIs

Speaking at the event, GIPC’s Director of Investor Services Division, Edward AshongLartey, stated that the centre has begun the profiling of existing investment opportunities across all districts in the country to serve as a guide to potential investors and as part of efforts to ensure an even distribution of projects and foreign investments countrywide. The move by the state investment promoter, Mr. Ashong-Lartey said, would tackle the seeming over-concentration of projects in certain parts of the country to the detriment of other regions. “Some regions attract more investors than others, and this is based on a number of factors; so, what we are doing as a centre is to compile the list of investment opportunities in the various regions. Working with the district assemblies, we want to showcase the business opportunities that exist in other parts of the country to open them up to investments,” he added.

‘Entrepreneurship, MSMEs pivotal to Ghana’s recovery post-Covid’ Continued from cover mentorship, and access to new markets, the South African High Commissioner to Ghana, Ms. Grace Janet Mason, has said. “Micro, small and medium enterprises provide great potential for employment and wealth creation to drive [the] growth of any nation; the pivotal role they play in any economy cannot be underestimated,” she said at the 11th Ghana Entrepreneur and Corporate Executives Awards Gala held virtually over the weekend. The South African envoy also advised the nation’s top business makers and self-made entrepreneurs to play the role of mentors and inspirers to usher in a new crop of job creators for the nation and the African continent. According to her, entrepreneurship will play a critical role in the socio-economic growth of the economies of the continent coming out of the pandemic.

“Astute entrepreneurs of the continent will have to mentor the youth to seize the opportunities that abound in the single continental market,” she added. Ms. Mason also made a case for the continent’s youth and womenled enterprises to be the core focus of the single continental market. “The revival of our economies

is in our own hands, especially with the creation of an integrated African market, but this agenda must prioritise the youth and women to realise the intended goal and benefits. Also, the full potential of the market could only be realised through the private sector,” the South African envoy emphasised. The Ghana Entrepreneurs and Corporate Executives Awards is an initiative of the Entrepreneurs

Foundation of Ghana (EFG). This year’s awards recognised top entrepreneurs and corporate executives who have made significant impact and lasting imprints on society. The award recipients have built a lasting legacy and demonstrated strong entrepreneurial and corporate leadership with sustained business performance, integrity and vision.

MONDAY MAY 24, 2021

News

MONDAY MAY 24, 2021

BoG moves to de-risk rural and community banks By Joshua Worlasi Amlanu macjosh1922@gmail.com

he central bank has issued guidelines for Rural and Community Banks (RCBs), focused on de-risking that sector of the banking system. According to bank, the guidelines, issued last week, have been designed to provide a framework within which regulated RCBs will establish and embed a culture of risk management in their institutions. Additionally, they will ensure that RCBs have a structured approach to risk management that meets the minimum standards. “The guidelines set out the minimum standard provisions on policies and procedures that would have to be covered in the various policies and procedures manuals used by the RCBs,” the bank said. “The guidelines will also provide RCBs with the needed guidance to protect their institutions from losses; protect

and attract capital; and instil confidence in the regulator and other stakeholders through the adoption of measures that promote stability in rural banks and the wider financial sector,” it added. Further expectations of the risk management guidelines are that the provisions will contribute to the creation of a culture of risk awareness in the RCBs, and strengthen methodologies for risk identification, measurement, mitigation, monitoring, and reporting. RCBs are required to use the guidelines for the formulation of RCB-specific risk management systems that will meet their unique needs. The central bank, under its corporate governance directive for RCBs also issued last week, requires all RCBs to adopt sound corporate governance principles and best practices to enable them undertake their licensed business sustainably.

GSE tumbles over MTN Ghana, Cal Bank sluggish performance

he Ghana Stock Exchange (GSE) Composite Index tumbled by 158.98 points (-6.17%) due to two stocks to close the week at 2,416.36 with a yearto-date return of 24.45%. This led to a decrease in market capitalisation by 2.81% to close at GH¢59.28 billion. The GSE Financial Index advanced by 0.49% due to gains in GCB Bank of 5.05% to close at 1,898.59 with a year-to-date return of 6.50% despite downward price movement in CAL Bank of 2.44%. MTN Ghana (-12.28%)

completed the decliners’ chart in the week under review. The previous week’s trading activity strengthened as 15,784,301 shares valued at GH¢25.18 million were traded compared to 6.25 million shares valued at GH¢7 million in the previous week. MTN Ghana dominated trades by volumes and value, accounting for 70.24% of total volumes traded and 45.43% of the total value traded. Market experts are anticipating trading activity to surge this week after last week’s the dip.

Boost to local content as GSA and Ghana Chamber of Mines launch electric the African Market. more foreign exchange for the of Understanding to guide the cable standards The Minister said there were country,” he said. two organizations in developing

he Ghana Standards Authority (GSA) and the Ghana Chamber of Mines (GCM) have launched the electric cable standards for the mining industry to boost local demand for the product. The standards were developed by a National Technical Committee, following the signing of a Memorandum of Understanding between the GCM and GSA to develop and improve the standards of products used in the mining industry. Launching the standards, in a speech read on his behalf, Alan Kyerematen, Minister of Trade and Industry, said standardisation was a critical cornerstone of every nation’s development. He said the locally manufactured electric cables could be competitive in terms of quality and price in the African market and urged the manufacturing companies to take advantage of the opportunity created by the AfCFTA to boost their exports to

many advantages of developing these electric cables standards for the local manufacturing companies, including costsaving and improvement in productivity, increase customer satisfaction with high-quality products and services and sets minimum standards of quality for processes, products and services. He said the successful implementation of the Electric Cable Standards required collaboration among the Ghana Standards Authority, mining companies and local electric cables manufacturers. He appealed to the mining companies to heavily patronise the locally manufactured electric cables and only import similar products as a last resort with the development of Electric Cables Standards. “The patronage of these local electric cables will enable the companies to enhance their operations, support the ongoing industrial transformation by creating jobs and conserving

Mr Kyerematen lauded the Ghana Standards Authority, Ghana Chamber of Mines and the National Technical Committee on Electric Cables Standards for developing the local standards and signing the Memorandum of Understanding to further collaborate. Chief Executive of the Ghana Chamber of Mines, Suleman Koney, said the development of standards for electric cables for the mining industry was part of a supplier development programme. “Appropriate and acceptable standards are a prerequisite to trade and business facilitation. It provides assurance that the product is fit for purpose and will perform as expected. For an industry, like mining for whom unplanned downtimes are costly, conformity with standards is not negotiable,” he said. He said it was in this direction that the Ghana Chamber of Mines and the Ghana Standards Authority signed a Memorandum

standards and align existing standards of mining inputs to meet the requirements of the mining industry. Professor Alex Dodoo, DirectorGeneral of the GSA, said standards were key to industrialization and creation of jobs, adding that ‘with standards we can trade together, we can talk together and we can do business together.’ “We are industrialising deliberately to create jobs. When we do that Ghana becomes rich, our folks become happy and we are better for it and the country can move forward,” he said. Prof. Dodoo said the development of the standards constituted phase one and that in phase two of the project, the partners would work with local power distribution companies and the personnel to ensure the selection and the appropriate installation of the mining power cables. GNA

MONDAY MAY 24, 2021

Companies

MONDAY MAY 24, 2021

First National Bank celebrates Africa with live concert

irst National Bank will host a virtual concert on Africa Day, May 25, 2021, in celebration of African unity, diversity and talent. This concert will feature artists from Ghana, Namibia, Eswatini, Lesotho and Botswana right to the homes of thousands of people across the continent. Recognised as Africa’s Most Valuable Bank Brand for the second year running, First National Bank brings customers and the public a virtual concert that captures the spirit of what it means to be African. The Africa Day concert, a first of its kind, will be a mix of music and dance showcased by performers from diverse backgrounds, collaborating to create Afroinspired musical magic. “In the last year our brand pushed boundaries in adding value to customers’ lives in a time of uncertainty, and this was reflected in our efforts to offer relief to individuals and business,

Delali Dzidzienyo, Head of Marketing and Corporate Affairs at First National Bank Ghana

coupled with keeping our doors open as an essential service”, says Delali Dzidzienyo, Head of

Marketing and Corporate Affairs at First National Bank Ghana. “Our industry-leading digital

platform enabled our customers to manage their finances in the comfort of their homes – and on Africa Day we will once again utilize the digital space in bringing our customers and all Africans together with this concert like never before”. “Many events have obviously been pushed online, often at the expense of the experience which makes them so powerful in the first place, however we think the fusion of live performance and online interaction delivers the best of both worlds. We believe the online concert experience will open up a new musical world to all Africans” adds Delali. Featured artists include: Yaw Tog and Cina Soul (Ghana), Top Cheri (Namibia), PDK (Namibia), Sands (Eswatini), Velemseni (Eswatini), KhoiSan (Botswana), Mophato Dance Theatre (Botswana), Ntate Stunna (Lesotho) as well as Botala ba Linare (Lesotho). The concert will stream for free on the First National Bank Facebook and YouTube pages at 14:30 GMT of May 25, 2021.

LC Waikiki opens second store in West Africa at Junction Mall

C Waikiki opens second store in West Africa at Junction Mall LC Waikiki, a leading global fashion retail brand, has opened its second store in West Africa at Junction Mall, Nungua, Accra.

The opening of the store makes Ghana the second country in West Africa where LC Waikiki expands its brand as part of its Africa growth strategy and in line with its mission ‘Everyone Deserves to Dress Well’.

Commenting on the store’s opening, Sevim Altın, Area Manager said: “The goal of LC Waikiki is to help everyone to dress. Of course, there are a lot of retailers in the market – both local and foreign. And at LC

Waikiki, we want to ensure we are as affordable or the lowest priced retailer.” The retail giant is currently operating more than 1,000 stores in 49 countries, 324 different cities on three continents and has almost 50,000 employees. Ghana’s store opening marks the expansion LC Waikiki in West Africa following the resounding success in the East African market. By the end of 2023, LC Waikiki plans to expand further in Africa, namely to Congo and Zambia. The Turkish brand’s target is to have more than 1,500 stores all over the world by the end of 2023. With more than 400 million items sold, the Istanbul-based company reported revenues of over US$2.2 billion in 2020. The grand opening of the Ghanaian flagship store had various guests and was done following COVID-19 Protocols. LC Waikiki has set the goal of affordable fashion beyond Turkish borders by connecting with various cultures in different markets. They are committed to providing customers from all age groups with products that are suitable for their style and budget.

MONDAY MAY 24, 2021

Mining

MONDAY MAY 24, 2021

Newmont renovates Pantang Hospital

ewmont Ghana has renovated the renovated psychiatric out-patient department of the Pantang Hospital to help improve the quality of mental health care delivery and as part of our support for mental health amid the COVID-19. The move forms part of the goldmining company’s social responsibility programme. According to officials of Newmont, they pooled resources from their COVID-19 Community Support Fund and other donations, “we raised $67,000 for the face-lift of the facility

to support comprehensive healthcare for its over 40,000 patients annually. ” the company

stated on its twitter handle. Newmont Ghana is a subsidiary of Newmont Corporation -the

world’s leading gold company. It operates the Ahafo and Akyem mines in Ghana.

Perseus Mining boost Ivorian, Ghanaian economy with US$385m in 2020

P W/R Coordinating Council to host Ghana Mining Week 2021 in July

he Western region has been selected to host this year’s Ghana Mining Week in July, organisers have announced. In March 2020, exactly a year ago, the first ever Gold Expo in Africa was held in Takoradi, the Western Region of Ghana. The Ghana Gold Expo, an initiative by the Western Regional Coordinating Council and Viewtag-Ghana Gold Expo, a partner of Aurum Monaco in the Principality of Monaco, a policy advocacy body, focused mainly on Promoting Zero Mercury (Responsible Gold Production) in local mining, and providing a platform to champion the campaign against the application of mercury in mining as captured in the Minamata Convention on Mercury and Gold trade traceability. With the support of Ghana’s President Nana Addo Dankwa Akufo-Addo, and through the Western Regional Coordinating Council and the Minister, and with the partnership of international agencies like Forbes Monaco, UN Environments Program (The Chemical Branch), Swiss Better Gold Association, 4bird Company and Gold Coast Refinery, Gold Fields Ghana, Ghana Standards Authority, Ministry of Lands and Natural Resources, Minerals Commission, Geological Department, PMMC, Chamber of Mines, Artisanal Small-scale Miners, Perseus Mining, Ministry

of Foreign Affairs and Regional Integration and the Central Bank of Ghana, the Expo came off successfully. The success of the Expo has seen the gradual repositioning of the Ghanaian Mining Sector as a responsible sector when it comes to the global economy. Relying on the success of the maiden Gold Expo in Africa, the Western Regional Coordinating Council and its partners are hosting the Ghana Mining Week 2021. With the increasing demands for mineral deposits and the diminishing nature of such minerals across the globe, the issues of mining are in the wake. This seemingly opportunity for developing countries like Ghana which have mineral deposits comes with its accompanying repercussions. As such, there have been various efforts by stakeholders in curbing some of the challenges in the Industry and positioning the sector as less controversial to investors. It is in this regard that the Western Regional Coordinating Council and Viewtag-Ghana Gold Expo will be holding the first ever Mining Week in July 2021. The program will focus mainly on diplomatic mining field trips to some artisanal small-scale gold mining sites, large-scale mining sites, and to some water bodies. Source : gsa.gov.gh

erseus Mining Limited has released its CY20 Sustainable Development Report. The report details the company’s progress over the past 12 months in delivering on its commitment to responsible mining operations in Côte d’Ivoire and Ghana, including an overall economic benefit to host countries totalling about USD$385M. As part of its longstanding commitment to the communities in which it operates, Perseus reported increasing community investment by 71% to around US$1.9M in CY20, funding critical health and education infrastructure projects for local communities. Additionally, Perseus announced it had increased its proportion of local procurement from 66% in CY19 to 78% in CY20, totalling US$287M, and further expanded its employment of local populations, with 96% of its current workforce local to Ghana and Côte d’Ivoire. According to Jeff Quartermaine, Managing Director & CEO of Perseus “Sustainability is deeply rooted in Perseus’s culture and operations and has had a large part to play in our resilience during this challenging year. We believe that responsible gold mining can play a key role in sustainable development, and that investing in our employees

and our communities to create enduring social value will remain a guiding force in our growth path and future business operations. I am proud of my team’s effective response to the pandemic which successfully safeguarded our operations as well as our people, enabling us to deliver our Yaouré mine in Côte d’Ivoire this year ahead of schedule. Our approach to sustainability has continued to mature as our business has grown, and in the coming years we look forward to expanding our ESG offering and delivering greater impact across Côte d’Ivoire and Ghana.” Jessica Volich, Group Sustainability Manager at Perseus, said “Despite the challenges the past year has brought, Perseus’s sustainability agenda has continued to strengthen and evolve alongside its expanding operations. Our wide-ranging efforts and engagement with our local communities and host governments has enabled us to create shared sustainable value for all our stakeholders. We are committed to strengthening these relationships in the coming years as we endeavour to generate socio-economic value for our people, communities and host countries.” Source: Tarifa

MONDAY MAY 24, 2021

Energy

MONDAY MAY 24, 2021

Eni publishes the world’s first SustainabilityLinked Financing Framework in its sector

ni has published the world’s first Sustainability-Linked Financing Framework in its sector, which fully-integrates sustainability in the company’s funding strategy. With this document, Eni further strengthens its sustainability strategy, aimed at achieving complete carbon neutrality by 2050 and at contributing to the achievement of the United Nations Sustainable Development Goals (“UN SDGs”). The Framework lays out the guidelines that Eni will follow in issuing new sustainable financing instruments and that will be applied to various financial solutions, including bonds (in public and private format), bank loans (term loans and credit lines) and hedging derivativitaes. Vigeo Eiris (V.E), an independent opinion provider, has released a Second Party Opinion, which validates the consistency of the Framework with Eni’s sustainability strategy, as well as its alignment with the Sustainability-Linked Bond Principles (“SLBP”) published by the International Capital Market Association (ICMA) and

the Sustainability-Linked Loan Principles (“SLLP”) published by the Loan Market Association (LMA). As required by the SLBP and SLLP, Eni has identified four Key Performance Indicators (“KPIs”) in the Framework: renewable energy installed capacity, Net Carbon Footprint Upstream (Scope 1 and 2), Net GHG Lifecycle Emissions (Scope 1, 2 and 3) and Net Carbon Intensity (Scope 1, 2 and 3). All four KPIs were qualified as relevant and material by V.E. For each of these KPIs, Eni has defined intermediate and longterm Sustainability Performance

Targets (“SPTs”) that contribute to the achievement of the UN SDGs, in particular UN SDG 7 “Affordable and Clean Energy” and UN SDG 13 “Climate Action”. These targets are aligned with Eni’s strategic plan and considered ambitious by V.E in relation to the broader sector. Eni will include in its future financial agreements, where possible, a mechanism that will link the financing cost to the achievement of one or more of the identified targets. To ensure the transparency of the sustainability results achieved by Eni over time, the performance of the various

KPIs will be published and verified annually by the auditor appointed for this purpose or by other qualified third-parties. Eni is strongly committed to playing a key role in fostering sustainability and over the last 7 years it has built a business model that puts sustainability at the core of every business activity, including its financial strategy, and believes that the development and use of sustainability-linked instruments can help promote the energy transition towards a low-carbon future. Eni is a founding member of the “UN Global Compact CFO Taskforce” for the SDGs which, in September last year, published the “CFO Principles on Integrated SDG Investments and Finance” aimed at guiding companies in aligning their sustainability commitments with their financial strategy, with the goal of creating a broad, liquid and efficient market for UN SDG-relevant investments and capital flows. In the structuring process of the Framework, Eni has been supported by Crédit Agricole CIB, Goldman Sachs International and UniCredit.

Vivo Energy renovates Brengo Presbyterian School

ivo Energy Ghana, the exclusive marketers and distributors of Shell branded products and services together with its employees have renovated and handed over a fiveunit classroom block at Brengo Presbyterian School in the Ashanti Mampong Municipality. The project, which is under the company’s ‘Energy for Water and Education Programme’ and is the second intervention of Vivo Energy Ghana in the Municipality, received funding from employees and retailers. In addition to the renovation, Vivo Energy Ghana provided classroom furniture, white boards, markers, a handwashing facility and gallons of hand sanitizers to the school. Other existing classroom blocks were also repainted, with new windows and doors fixed to ensure a safe learning environment. Speaking at the handing over of the renovated classroom block, the Corporate Communications Manager of Vivo Energy Ghana, Mrs. Shirley Tony Kum, who commissioned the project on

behalf of the Managing Director said: “with our vison of becoming Africa’s most respected energy business, we strive to go beyond simply running a business to serving our communities. Not just through providing high quality Shell products and services, but also through the critical areas of road safety, education and the environment.” Mrs. Shirley Tony Kum recalled Vivo Energy Ghana’s intervention in 2019 in the Ashanti Mampong Municipality where the company handed over two newly constructed hand-

pump boreholes and educational materials to the people and school children in Hiamankyene, a community which for decades has had no access to potable water. “The journey back to Brengo School is in line with our commitment towards the United Nation’s Sustainable Development Goal 4 of ensuring inclusive and equitable quality education and promoting lifelong learning opportunities for all. We believe the new classroom block will provide a safe shelter and a conducive environment for

academic excellence to thrive”, says Mrs. Tony Kum. Commending Vivo Energy Ghana for complementing the government’s effort at improving education, the Municipal Chief Executive (MCE) of Asante Mampong Municipal Assembly, Mr. Thomas Appiah Kubi, called for greater collaboration between corporate Ghana and the government to promote quality education in the Municipality and urged the authorities of the school to ensure proper maintenance of the facility.

MONDAY MAY 24, 2021

Feature

MONDAY MAY 24, 2021

Achieving the SDGs: The developing nations US$2.5 trillion investment gap

his year 2021 will mark six years since the United Nations kick-started its Sustainable Development Goals agenda. This Agenda which the UN describes as a plan of action for people, planet and prosperity, builds on the Millennium Development Goals and ultimately serves as the guideline for addressing a host of the world’s societal disorders to eradicate poverty by 2030. The goals under this agenda are carefully crafted around the three key pillars of development, i.e. economic, social, and environmental. To outline these goals, the economic facet includes the end of poverty (SDG 1), zero hunger (SDG 2), good health and well-being for all (SDG 3), decent work and economic growth (SDG 8), then industry, innovation and infrastructure (SDG 9). For the environmental facet, the goals are clean water and sanitation (SGD 6), affordable and clean energy (SDG 7), responsible consumption and production (SDG 12), climate action (SDG 13), life below water (SDG 14) and life on land (SDG 15). Meanwhile, the social pillar includes quality education (SDG 4), Gender equality (SDG 5), reduced inequalities (SDG 10), sustainable cities and communities (SDG 11), peace justice and strong institutions (SDG 16) and partnerships for the goal (SDG 17). Gleaming from the outlined goals, the agenda is transformative and identifies the key areas where resources can be channeled for the ultimate purpose of putting the world on a resilient and sustainable path. However, underlying the achievement and implementation of these goals is the mobilization of financial resources, technology infrastructure, capacity building and partnerships which have been slack and uneven since inception. This challenge coupled with the plateauing of global financial flows has toughened the task of raising necessary funding for implementing the SGD’s. According to the United Nations Conference on Trade and Development (UNCTAD), a total of US$3.9 trillion dollars is the estimated investment required annually to help achieve the United Nations Sustainable Development Goals by 2030. For developing countries, UNCTAD places this annual financial requirement in the ranges of $3.3 to $4.5 trillion based on estimates for the most important SDG sectors from an investment

GIPC and the SGD Investor Roadmaps

point of view. This entails a midpoint estimate of $3.9 trillion per year. Deducting current annual investment of $1.4 trillion, There remains a staggering estimated investment gap of $2.5 trillion required by developing countries to realize the UN’s ambitious poverty-eradicating 17 Sustainable Development goals. Harnessing private sector investments towards achieving the SDGs Confronted with the lack of adequate capital from donors and government to fund the SDG’s, most countries have had to turn to the private sector as a key player in funding the SDG’s. Sure, that Private sector investments was imperative in bridge the $2.5 trillion financial gap, it was no surprise that world leaders urged innovative solutions to garner greater private sector investments in both developed and developing nations such as Ghana. Among the key forms of private sector participation therein identified is Public Private sector Partnerships anchored on supportive and favorable government policy and incentives, as well as private sector investment into development goals through a commitment to sustainable development practices and accountability. Ghana’s commitment and its private sector as partners in achieving the SGDs Having committed to the SDGs since its inception, Ghana has not relented in its commitment to achieving the seventeen targets under the SDG. “We have incorporated the goals into our national development plans, including our national budgets, and in our unflinching commitment to leave no one behind” affirmed the President Nana Akufo-Addo in his message on the Voluntary National Review Report on implementation of the 2030 Agenda for sustainable development. Per the findings of this report,

Ghana has so far made some gains in some key indicators under the social goals but not enough to achieve the SDGs by the 2030 deadline. Nevertheless, there is great potential for increasing private sector participation in various sectors to significantly improve Ghana’s course. Some areas that present as natural candidates for private sector investment or Private Public Partnerships in Ghana as envisaged by Standard Chartered in its SGD Investment map are; infrastructure and transport with an estimated investment opportunity of USD4.1 bn, then power and renewable energy sources also with an estimated USD 7.8bn investment opportunity. There’s water and sanitation presenting an investment opportunity of USD 0.8bn as well as Digital solutions with a USD 4.0bn estimated investment opportunity. Granted, private firms are already contributing to the SDGs in many ways, greater potential lies in partnerships for greater impact in achieving the SDGs. “From an investment perspective, establishing lasting partnerships and linkages with the private sector is one sure way to meet the financing needs of the SGD said Yofi Grant, CEO of the Ghana Investment Promotion Center. “Government cannot do this alone and we therefore need the private sector as our allies and partners in driving the SDGs”, he adds. With the upcoming revised investment law, the GIPC will address a majority of underlying issues obstructing Private sector investments, by improving the ease of doing business and introducing other innovative solutions to incentivize greater private sector participation. At the national level, priority has been placed on the private sector through engagements with CEOs of key private businesses to ensure that the private sector aligns with the SDGs and boost capital flow towards its achievement and the ultimate goal of poverty eradication.

Again, in a more concise effort to fully harness the potential of the private sector in achieving the SGDs, the GIPC joined efforts with the United Nations Development Program to launch the Ghana SDG Investor Roadmap. The Investor Roadmap essentially provides a structured framework and guideline for the private sector, to accelerate investment into priority sectors identified to help Ghana achieve some of its development goals under the SDGs. Per the roadmap, Ghana has identified investment prospects in five main priority sectors and twelve Investment Opportunity Areas (IOA) to meet the nations development needs. The sectors Include agriculture with the ultimate aim of scaling up food production to ensure food sufficiency; Infrastructure, technology and communication as well as healthcare which will increase access to services such as ICT, affordable housing, transportation and education for the vast population; then the consumer goods sector to improve consumer welfare. With the key investment sectors identified, the GIPC in alliance with the UNDP will in the course of time engage investors for the purpose of mobilizing private capital through Investor Round table sessions, business pairings especially between international investors and local investors as well as regional and district level engagements to promote the SDG investor roadmap and help investors identify opportunities across the length and breadth of the country. Once the investment roadmap is set into motion it is anticipated the private sector capital will be effectively mobilized for the purpose of achieving the SDG goals and eliminating poverty.

Yofi Grant, GIPC CEO

MONDAY MAY 24, 2021

Feature

MONDAY MAY 24, 2021

Sex and the Chinese economy

By Shang-Jin Wei

hina’s recently released population census confirms the persistence of the country’s alarming excess of males relative to the global norm. This numerical imbalance from birth onward has several significant economic implications – and not only for China. Because women live longer than men on average, most countries’ populations have more females than males. In the United States, for example, there were 96 males per 100 females in 2020. China, by contrast, has 105 males for every 100 females, according to the latest census. Chinese women live about three years longer than Chinese men on average, so the “excess males” are entirely the result of an unusually high ratio of boys to girls at birth. The sex ratio at birth is normally around 106 boys per 100 girls. Because boys and young men have a slightly higher mortality rate, and because husbands tend to be somewhat older than wives, such a ratio at birth is nature’s way of ensuring a roughly 1:1 ratio by the time they reach reproductive age.1 Although China’s male-tofemale ratio at birth was close to this natural rate in the 1970s, a combination of factors fueled its steady rise. The most significant were a preference for sons, the availability of ultrasound and other technologies that enable expectant parents to know a fetus’s sex, and the government’s imposition in 1980 of a strict family-planning policy that

prevented most families from having as many children as they desire. Some parents have opted for sex-selective abortions. The government tried to forbid the practice, but it is hard to prevent as long as abortions are used as a means of complying with birth limits. As a result, the sex ratio at birth increased steadily, peaking at about 121 boys per 100 girls in 2009. According to the recent population census, this ratio has since declined to 111.3 boys for every 100 girls – more balanced than before, but still significantly higher than it would be in the absence of sex-selective abortions. China’s “excess” of male births results in a large number of young men being unable to marry. In mathematical terms, about one in nine young men in China cannot find a girlfriend or wife. This problem is even more serious in regions such as rural Anhui and Guangdong, where as many as one in six young men has difficulty finding a marriage partner. In a series of research papers with various co-authors, I have documented some of the large and sometimes surprising economic consequences of this skewed sex ratio for China and the world. For starters, young men – and especially parents with unmarried sons – increase their savings rates substantially in order to enhance their relative competitiveness in the dating and marriage markets. In a 2011 paper, Xiaobo Zhang and I found that the rise in the male-female ratio

in China’s pre-marital-age cohort from 1990 to 2007 accounted for about half of the increase in the household savings rate during that period. An increase in the savings rate tends to boost a country’s trade surplus. In 2013, Qingyuan Du and I showed that a rise in China’s male-female ratio may have contributed to between one-third and one-half of the increase in its trade surplus with other countries. The sex imbalance thus likely underpins an important source of tension between China and the US. Yet bilateral engagement has paid scant attention to this linkage. As I show in a forthcoming research paper with Zhibo Tan and Xiaobo Zhang in the Journal of Development Economics, China’s unbalanced male-female ratio also contributes to unsafe workplace practices, leading to many preventable injuries and deaths. A shortage of potential brides causes many parents with sons of marriageable age to work more and seek higher-paying but potentially dangerous jobs in sectors such as mining and construction, or jobs exposing them to hazardous materials and extreme heat or cold. Because people are more willing to accept such jobs, employers often invest less in workplace safety, which in turn increases work-related injuries and mortality. My co-authors and I found that accidental injuries and workplace deaths are significantly higher in areas with a more severe shortage of young women relative to men. And parents with sons of

marriageable age account for a disproportionate share of the victims. The sex-ratio imbalance can selfcorrect, but only slowly. Seeing parents with sons shouldering greater financial and physical burdens to help their sons avoid involuntary bachelorhood, many young couples may decide that having a daughter is as good or better. But the latest population census, which shows that the sex ratio at birth remains unbalanced, tells us that discrimination against girls persists. As China worries about the country’s low population growth, it has progressively relaxed (but not yet ended) its family-planning policy. Policymakers should now go further, and provide a significant financial reward to parents of baby girls. Such a measure would simultaneously hasten the correction of the sexratio imbalance at birth and arrest the decline in the overall birth rate. A more balanced sex ratio will lessen the need for many Chinese households to sacrifice current consumption for higher savings, and foster safer working environments. It would also help to reduce trade tensions with other countries. About author Shang-Jin Wei, a former chief economist at the Asian Development Bank, is Professor of Finance and Economics at Columbia Business School and Columbia University’s School of International and Public Affairs.

MONDAY MAY 24, 2021

Energy

MONDAY MAY 24, 2021

Qatar invests billions, undercuts rivals to maintain LNG market dominance

atar is dropping prices and pushing ahead with a $29 billion project to boost its exports of the fuel by more than 50%, stymieing the prospects of new plants elsewhere. It has also established a trading team to compete in the nascent spot market and pushing into Asia more aggressively, according to people familiar with the matter. The world’s top exporter of liquefied natural gas is ramping up production dramatically and undercutting competitors in a bid to squeeze them out the market. The strategy marks a shift for Qatar, which has barely raised production in the past five years and traditionally prioritized prices over market share. Increased competition, especially from the U.S. and Australia, has forced the Persian Gulf state to become more nimble and attract buyers in Asia, a hot spot for gas demand. The global transition to renewable energy is adding to the country’s sense of urgency. While LNG was until recently touted as a bridge from coal and oil to the likes of solar and wind power, it is falling out of favor with some governments as they step up efforts to slow climate change. Gas King “Qatar’s expansion plan is so huge that there are questions on the need for other supply options,” said Julien Hoarau, head of EnergyScan, the analytics unit

of the French utility Engie SA. “It’s still the number one, but the U.S. has never been so close, so Qatar needed to move if it wanted to keep its leading position.” The U.S. came close to overtaking Qatar’s monthly exports for the first time in April, while Australia has been neck-in-neck with the Middle Eastern nation for the last year, according to ship-tracking data compiled by Bloomberg. As Gulf Coast projects develop, the U.S. is slated to briefly become the world’s top supplier by 2024, before Qatar regains that status later in the decade, according to BloombergNEF. Several factors are playing into Qatar’s hands. China, one of the fastest growing LNG markets, has been reluctant to import more from the U.S. or Australia due to trade and geopolitical tensions. But Qatar’s main advantage is that it has the world’s lowest production costs thanks to an abundance of easy-to-extract gas, most of it contained in the giant North Field that extends into Iran. Bonds Coming Qatar’s state energy company, which may soon sell up to $10 billion of bonds to fund the gas expansion, said the project will be viable even with oil at $20 a barrel, 70% less than current levels. LNG contracts are typically linked to oil. That’s enabling Qatar Petroleum to set pricing below what other

exporters can manage, according to traders. The firm has sold LNG in recent months at around 10% of Brent crude prices, including to China and Pakistan, whereas it used to set the level at 15%. “Nobody can compete with Qatari costs,” said Jonathan Stern, a senior research fellow at the Oxford Institute of Energy Studies. “They can do whatever they like and everybody will have to respond the way they can. And, especially when the market is in surplus and prices are low, that will impact the competition’s profits.” QP executives have jetted across Asia over the past few months to ink export deals. Their efforts led in March to a 10year contract with Beijing-based Sinopec, signed at 10%-10.19% of Brent. Qatar’s Ministry of Energy and QP didn’t respond to requests for comment. A few years ago, demand for LNG was projected to rise steeply over the coming decades. Gas emits less carbon dioxide than most other fossil fuels when it’s burned, while renewable-energy projects were still too expensive to power electricity grids, factories and transport on a mass scale. But solar and wind technology is improving faster than expected, helped in part by massive government greenspending programs triggered by the coronavirus pandemic. “We’re Not Afraid”

Even as Qatar seeks to make the most of its assets, there are obstacles to it reaching total domination. Many buyers want a diverse group of suppliers. Russia’s Yamal LNG project and the planned Arctic LNG 2 plant, led by Novatek PJSC, are among those that will remain competitive as Qatar ramps up exports, according to analysts at Citigroup Inc. The biggest U.S. LNG exporter, Cheniere Energy Inc., said it’s unperturbed by Qatar’s moves. Some importers are attracted by American firms offering more flexible delivery terms and pricing that’s not tied to oil, which has soared almost 30% this year. “We’re not afraid,” Cheniere’s Chief Commercial Officer Anatol Feygin told investors this month. “We’re part of a sort of diversification of the supply and contracting structure along with Qatar Petroleum and our friends at Novatek.” Yet U.S. projects are among those most likely to struggle. At least 10, five of them in Texas and four in Louisiana, probably won’t secure enough financing to be completed, according to analysis from BloombergNEF. Writer: Donald Marshall Company: Mframadan Energy Management & Research Institute (M.E.M.R.I). Contact: 00233-24-4550854 Email: donaldamus@yahoo.com Original Source: World Oil

MONDAY MAY 24, 2021

Feature

MONDAY MAY 24, 2021

Before you say yes to an MLM business…

The author

By Kennedy Amoako

any people get disappointed after joining an MLM business or have some myths about MLM businesses that put them off from joining an MLM business. Most people fear to fail in MLM business but the fact remains the same. No risk, No success. No one was born a failure. Just as life is full of risks to success, starting up a new business also comes with its own risks to success and the earlier you know those risks, the better your chances of success. Before joining a multi-level marketing company, check out for the following: • Products/Services You need to ask; “is the company providing me with products after I partner?” Or a service? If service, you need to do a more thorough research before taking the decision, because it could be high-risk comparable to a tangible product based MLM business. What if it is a tangible productbased MLM business? You must ask; “what kind of products are being provided?” Are they products that are of luxury, or products that are driven by seasons, or consumed based on circumstances such as health condition, or they are products that are a basic necessity? The latter is less risky. Consider the range of Longrich International’s products being used for their network marketing business for example. There are products like toothpaste, deodorant, variety of soaps,

sanitary napkins, coffee, teas, etc. that are all basic necessities in daily living (which is of high demand and will continue to be) compared to another network marketing company that has product such as health supplements only (which is conditional to your health position) and energy products only (which are luxurious). Products of necessity are products that are demanded by consumers on a regular/daily basis and highly marketable. If this is the case, then what kind of daily necessity products are they? Are they products of premium value, or they are products that are just thrills? Premium value products leave room for very little comparisons by consumers and it also increases demand for marketing. You must again consider how wide or narrow the product range of the MLM company is. Are there a wider variety of products, available in numerous categories of demand, or they are limited to seasonal or circumstantial demands? Longrich for instance, manufactures a variety of products -in the categories of daily use cosmetics, feminine care, energy and health carewhich are on high demand by mass populations across the globe. These sum up to over 2,000 variety of products. Each product has a multi-purpose function that does not limit it to what the product is normally supposed deliver. The Longrich toothpaste which falls in the daily use category for instance cures tooth ache, gum bleeding problems, bad breath, strengthens the teeth and whitens the tooth enamel. The Sanitary napkins in the feminine

care category, aside being highly absorbent, solves menstrual cramps, helps in hormonal balance during menstruation, ensures a good menstrual flow, eliminates urinary tract infections, vaginal infections and to some extent is even a first step solution to melting out uterine fibroids and is very therapeutic on prostate cancer in men. These are but a few of the products and their benefits. The products are multipurpose (with numerous side benefits), of premium quality, and as such, they are of a much higher value than other products on the market. Every product based multilevel marketing company that is seeking to progress for the longest possible time, must have be available in wider range categories, must be of qualitative value, must be an essential necessity and should be highly demanded by the general mass of consumers. This creates a long-term business/marketing opportunity for everyone who partners, confirmatory that the products will be highly demanded. • Company Profile The next factor to consider before joining an MLM is the profile of the company. What can you say about the company? How long has it been in existence? What’s their investment portfolioare they into other businesses aside the manufacturing and marketing on the MLM platform? What other branches or locations does the company have? Take for instance the Longrich Company. This company has been in existence since 1986, they are

not only into organic products manufacturing but also into real estate development, they have research and development centers worldwide, they have universities in Asia and manufacturing plants in Asia and Africa, they are into banking and finance and so many others. This shows that their business is not only limited to products manufacturing but many other business portfolios are also affiliated. This makes the platform very solid and grounded in terms of funding its growth and development financially, thus there is very little doubt of its collapse how so ever. • Accessibility of Products In relation to the above, products manufactured by the products based MLM company must be readily accessible for consumers as they partner/join. Unlike other products-based companies, when you join, you are expected to be dealing with these products however you never set eyes on them nor receive them to physically have an experience with the products. But again, let’s look at the Longrich platform. The moment you join, you have your products right at the payment point. You are expected to use the products, have an experience with them, to help you confidently share your testimonies on them to others to build your network of consumers- so you receive the products as soon as partnership is established. In part two of this episode, we will look at two other important risk factors to be considered…

MONDAY MAY 24, 2021