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‘CocoBenz’: Turning coconut selling into a fashionable venture
NO. B24 / 274 | News for Business Leaders
A AfDB extends US$40m grant to establish DBG
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Terkper urges gov’t to rebuild Stabilisation Fund By Eugene Davis ugendavis@gmail.com
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he Ghana Investment Promotion Centre (GIPC) has been adjudged Africa’s best investment promotion agency for the third year consecutively by the Capital Finance International magazine (CFI.co). In the citation for the award, the CFI.co highlighted GIPC’s multi-level approach to investment attraction, leveraging technology, social media, and other ingenious initiatives to deliver on its mandate.
ormer Finance Minister Seth Terkper has proposed to government to rebuild the Ghana Stabilisation Fund (GSF) to help the country prepare well for the next crisis. The GSF is Ghana’s rainy day oil fund, whose purpose is to cushion the impact on or sustain public expenditure capacity during periods of unanticipated petroleum revenue shortfalls. In 2020, amid the pandemic crisis and rapid fall in oil prices, the government tapped into the GSF by withdrawing US$250m from the fund to cushion the Cont’d on page 2
GIPC wins Best Investment Promotion Agency in Africa for third straight year
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Seth Terkper
Kosmos progresses with acquisition of stakes in Jubilee, TEN fields By Benson Afful affulbenson@gmail.com
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Business returns to Oyarifa Mall after Covid scare By Ibrahim Mashud
osmos Energy says it has received notice from Tullow Oil Plc and PetroSA that they intend to exercise their pre-emption rights in relation to the sale of Occidental Petroleum’s interests in the Jubilee and TEN
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etail shops in Oyarifa shopping mall, the latest shopping and lifestyle centre in Accra are enjoying market boost after Cont’d on page 5
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Editorial / News
MONDAY NOVEMBER 15, 2021
Editorial
GIPC’s trailblazing innovations get the right recognition
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hana’s investment promotion agency, the Ghana Investment Promotion Centre (GIPC) is getting several recognitions for the right reasons. The centre has been adjudged Africa’s best investment promotion agency for the third year consecutively by the Capital Finance International magazine (CFI.co). The recognition highlights GIPC’s multi-level approach to investment attraction, leveraging technology, social media, and other ingenious initiatives to deliver on its mandate. It further touted the centre’s effectiveness in fashioning and supporting groundbreaking measures that have enhanced Ghana’s investment climate. The GIPC has in recent times upscaled its activities to keep up
with changing business trends, as it seeks to continually provide top-notch services to investors. The centre adopted a dynamic system which makes aggressive use of digital media, coupled with high-level stakeholder engagements and business-tobusiness (B2B) linkages. It has also broadened Ghana’s investment pool, with increased advocacy for Diaspora Direct Investment (DDI), followed through by the establishment of a Diaspora Investment Desk (DID). All of these interventions have had an impactful effect on the local investment climate and the economy in general. Ghana has seen a surge in Foreign Direct Investments (FDI) inflows, recording an impressive 2.6 billion dollars’ worth of inbound investments for the year 2020, defying an anticipated
decline due to the resurging coronavirus pandemic. These monies where largely pumped into the critical sectors of manufacturing, services and mining, with the expected benefit of job creation. We congratulate the GIPC for this envious feat which should motivate the staff and leadership of the centre to work even harder towards the realization of our collective dream of positioning Ghana as the investment and business hub of the West African sub-region. We also remain confident that with this dedication to service and prudent leadership, the country could rope in the needed investments from across the continent, especially with the implementation of the single continental market, for nation building and wealth creation.
Terkper urges gov’t to rebuild Stabilisation Fund Continued from cover
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economic impact of the crisis. The fund subsequently ended the year with a book value of approximately US$200m. “If the economy is as strong as we are being told, then we are meeting the quarterly target [for transfers into the GSF] and therefore automatically it must be restored,” said Mr. Terkper during a media dialogue on Ghana’s finances ahead of the 2022 Budget. He stated further that the fiscal situation has become tighter, with the country failing to return to the international capital markets to secure an estimated US$2bn to finance the 2021 budget deficit and refinance debt. “Until tax and non-tax revenue bumps up, the 2022 budget would also be debt- or loan-dependent,” warned Mr. Terkper. The former finance minister added that the fiscal situation poses fiscal risks, with pressure on the domestic debt market, and argued further that borrowing at higher rates only puts more pressure on interest payment and amortisation.
He nonetheless expressed optimism about the economy, but said things would improve only if the fiscal challenges are addressed. “On a positive note, we noted the Special Drawing Rights, we noted crude oil prices
[generating more revenue], we noted post-Covid-19 recovery; all will be positive towards the budget,” he said, adding, “On the downside, we know the pressure on interest and compensation, which is crowding out capital expenditure.”
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Kosmos progresses with acquisition of stakes in Jubilee, TEN fields Continued from cover fields to Kosmos, announced on October 13, 2021. The exercise of pre-emption rights is subject to finalising definitive agreements with Kosmos/Anadarko WCTP Company and requires approval from GNPC and Ghana’s Ministry of Energy. If completed, Kosmos’ ultimate interest in Jubilee would be reduced by 3.8 percent to 38.3 percent (Kosmos retains ~80 percent of the original acquired interest), and Kosmos’ ultimate interest in TEN would be reduced
by 8.3 percent to 19.8 percent (Kosmos retains ~25 percent of
the original acquired interest). Consideration due to Kosmos would be approximately US$150m based on the headline purchase price of US$550m and is subject to certain closing adjustments. Kosmos said it would anticipate using any potential proceeds to accelerate debt repayment. “If pre-emption is completed, Kosmos will provide a further update to the market in due course,” the company added.
Kosmos is a full-cycle deepwater independent oil and gas exploration and production company focused along the Atlantic Margins. Its key assets include production offshore Ghana, Equatorial Guinea and U.S. Gulf of Mexico, as well as a worldclass gas development offshore Mauritania and Senegal.
GIPC wins Best Investment Promotion Agency in Africa for third straight year Continued from cover It further touted the centre’s effectiveness in fashioning and supporting groundbreaking measures that have enhanced Ghana’s investment climate. The GIPC has in recent times upscaled its activities to keep up with changing business trends, as it seeks to continually provide top-notch services to investors. The centre adopted a dynamic system which makes aggressive use of digital media, coupled with high-level stakeholder engagements and business-tobusiness (B2B) linkages. It has also broadened Ghana’s investment pool, with increased advocacy for Diaspora Direct Investment (DDI), followed through by the establishment of a Diaspora Investment Desk (DID). The GIPC has also set up an Aftercare Division, aimed at providing post-investment services to nurture lasting stakeholder relationships. Moreover, in line with the global drive for sustainable investments, the GIPC collaborated with the UNDP to launch the SDG Investor Roadmap, which aims to mobilise private-sector investments to advance the Sustainable Development Goals.
The aforementioned multifaceted drive by the centre helped it to attract an impressive amount of Foreign Direct Investment (FDI) amid the COVID-19 crisis, leading Ghana to rank as the best country in West Africa to invest according to a report by Rand Merchant Bank. It is therefore unsurprising that GIPC has again been pronounced the best Investment Promotion Agency (IPA) in Africa by CFI.co for the third year running. The prestigious award arrives at a time when the centre’s CEO, Mr. Yofi Grant, has been reelected as the Director for Sub-Saharan Africa on the Steering Committee of the World Association of Investment Promotion Agencies (WAIPA). Commenting on GIPC’s feat, Mr. Grant opined that the award is “testament to the great work being done by the centre and the progress it has made so far”. He added that “the centre will continually strive to do more to ensure that Ghana cements its place as the investment hub of Africa”. Besides GIPC, other big winners of this year’s CFI.co awards included International Business Machines Corporation (IBM), Mckinsey & Company, JPMorgan Chase & Co., China Construction Bank (CCB),
Germany’s Commerzbank (CBKG. DE), and UK’s NatWest Bank. The new CFI.co award adds to other respected honours the GIPC has received over the last few years. The centre was similarly named the best Investment Promotion Agency in West and Central Africa for five years in a
row by the Annual Investment Meeting (AIM) awards. AIM is the world’s leading investmentfocused event, initiated by the UAE Ministry of Economy to acknowledge and enrich institutional, corporate and individual investors.
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‘CocoBenz’: Turning coconut selling into a fashionable venture By Ibrahim Mashud
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he name CocoBenz may seem unfamiliar to many but it’s an amazing idea of a young graduate and entrepreneur of Pentecost University, Bender Owusu Bediako Antwi, who has decided to turn the usual selling of coconut into a more fashionable venture. CocoBenz is a branded beverage venture which deals mainly in fresh coconut and coconut products as has been aptly captured by its tagline “gentle kube sellers” CocoBenz produces fresh coconut juice, coconut flakes and coconut smoothies in varying quantities and volumes in an intriguing packaging that attracts customers to products. According to the young agripreneur, CocoBenz was born when he was admitted to the University where he started selling the product from class to class and offices within the premises of the school in smaller quantities to support his academic endeavors. Eventually, he progressed from selling within the school to other campuses and organisations to sell the product within the
Greater Accra Region. Today, CocoBenz produces the products in larger quantities and supply to corporate bodies and functions such as parties, funerals, weddings, corporate meetings among others across the country upon request. As a result of high demand for the products, CocoBenz engages some coconut farmers in different parts of the country like the Central and Eastern regions, finance them for cultivation and own some parts of their farms to ensure they are always available on the market. Even though production may sometimes be affected as a result of climatic changes in Ghana, CocoBenz is able to harvest and package up to 3.5 metric tons of coconut in a year. That is approximately 20,000 ounce of production in a year because 1 metric of the product is approximately 5000ounce. CocoBenz has been in the market for about five years now and its gradually getting international recognition because they believe distance is never a barrier to their services. Interestingly, the product is now available on one of the
leading delivery apps ‘Bolt Food’ and can be delivered to customers with just a click on the app. It is important to reflect on the brewing unemployment situation in the country and how this young entrepreneur has turned coconut, thus, one of the
country’s resources into a sort of employment for himself and some other youth in the country. This is one of the brilliant ideas and initiatives that need be encouraged among the youth to bridge the unemployment gap in the country.
Business returns to Oyarifa Mall after Covid scare Continued from cover a prolonged period of the threat of the Covid-19 pandemic. “As we are getting out of the danger of covid and life is getting back to normalcy, a lot of people want to get engaged in different activities away from the house and so the retail shops here are enjoying a lot of the foot traffic,” manager and co-owner of the mall, Peter Osei, said in an interview with Business24. “This is obviously a new shopping mall and so we focus most of our energy on marketing. The turn out and hype got to the multitude during the Christmas period last year and a bust of people started coming here to do shopping and have fun with their families after a prolonged period of the covid-19 threat,” he added. Established and launched in December last year, the shopping and lifestyle centre serves the suburbs of Oyarifa, Ayimensah, Damfa, Adenta, Aburi and its environs with a wider pool of retail shops and play centres including
Latex Foam, Kings Bazaar, Tansy Ltd, Drugix Pharmacy, Doxa Mart among others. Shop owners in the mall say their products and services are moderated to better serve the needs of people from the community and beyond whilst some asserted that sales are moving on smoothly, with turnout expected to increase heading into the Christmas season. Located at Oyarifa, on the Adenta-Aburi stretch, the sprawling edifice hosts a variety of retail outlets including
convenience shops, gym centres and restaurants. According to the investor, the mall was birthed to attend to the shopping needs of the rapidly developing community. “We noticed that there are a lot of natural attractions around here and the community is eventually developing rapidly and so we felt the need to establish something that will bring the people here together,” Mr. Osei shared. “Most of the people who live around here will travel a distance to do shopping in town and that
adds up to the traffic along the Aburi to Accra route. This mall is supposed to limit the communes from travelling distance to do shopping and that will obviously reduce traffic,” he added, indicating the economic benefit of the mall to the community. He said his investment into the shopping and lifestyle facility has provided jobs for a lot of Ghanaians right from construction of the mall whilst about 95percent of the tenants are Ghanaians who are now enjoying the growing market.
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PIAC calls for development plan to guide spending of oil revenue
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he Public Interest and Accountability Committee (PIAC) has reiterated the need for a long-term development plan for effective utilisation of oil revenue. The Committee said such a plan would guide governments in choosing and investing appropriately in the 12 priority areas outlined for oil revenue disbursement. “Petroleum revenue has been used to tackle too many national problems... weakening the potential impact of oil revenue on social-economic development of Ghana,” Professor Kwame AdomFrimpong, PIAC Chairman, noted, and said the absence of a plan had created a vacuum for governments to use oil proceeds to fund manifesto promises, some not addressing 'real' needs of the people. Prof Adom-Frimpong said this in a presentation on the semiannual report on the Management and Use of Petroleum Revenues for January to June 2021, at a
stakeholder engagement with some students at the University of Professional Studies in Accra. He emphasised the need for a proper impact evaluation of spending on chosen priority areas before new areas were targeted to help ascertain how oil revenue had impacted the lives of Ghanaians. The Government has targeted four priority areas to receive support from oil revenue from the year 2020 to 2022.
They are: Agriculture, Industrialisation, Road and Rail and critical infrastructural development and service delivery under Education and Health. For the first half of 2021, an amount of GH₵914.6 million was disbursed to the four sectors. They received GH₵2.93 million, GH₵188,954, GH₵503.5 million and GH₵408 million respectively. In a documentary aired at the forum, past chairpersons of the Committee highlighted
the challenges that had been associated with the spending of oil revenue, including "partial support" for development projects, non-utilisation of allotted funds for projects, ghost projects, and the giving of money to financial institutions in " unclear circumstances". Noble K Wadzah, a former Chairman of PIAC, said: “It is hurting to know that you go to some communities that are supposed to have benefited from oil revenue and when you go to see the projects, they are fast deteriorating soon after they have been handed over.” He also raised concerns over how government agencies allegedly used oil revenue to champion poitical agenda of governments. “There is the tendency that people at the local level would perceive these agencies as the government” he stated. GNA
We are fighting corruption with deeds, not words –Bawumia
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he Vice President, Dr Mahamudu Bawumia, has urged Ghanaians, especially politicians, to inculcate moral values and high standards in the quest to build a society underpinned by a common set of aims and beliefs. He has also charged politicians in particular to emulate the AkufoAddo government by backing up their claims of fighting corruption through deeds, not just words, to make Ghana a better place. Speaking at the 76th Graduation ceremony of the Trinity Theological Seminary, Legon on Saturday, 13th November 2021, Vice President Bawumia said in today’s world, it has become important that countries deliberately develop a society of persons who are not merely prepared for jobs, but are also set for ongoing growth in all aspects of life to make a difference in the world. “As Ghanaians, we could build a distinct moral identity and constitute a reference point for people of other nations. We must endeavour, both in our public and private lives, to do what is morally right and eschew what is morally evil. A high sense of
morality is “sine qua non” of good citizenship. That much, not material wealth, not prosperity religion, is what we need in order to build a good society” he emphasised. Corruption Zeroing in on corruption, Vice President Bawumia said several pronouncements have been made in the past indicating a desire to fight it, but these have largely failed, hence the decision by the Akufo-Addo government to digitize the process of accessing government services and reduce the human interface, which lends itself to corruption. “One of the major moral cankers facing our society is that of corruption. It is one of the things that every political party talks about but very little has been done about it in the past. We have killed people in the past and it has not worked. We have passed many laws and they have not been enforced. We have appealed to people’s sense of morality and it has not worked. “When we came into office, one of the approaches we took to address the issue of corruption is to put in place
systems that eliminate corruption through digitalization. Through digitalization we have been able to tackle corruption at the Passport office, Ports, GRA – TIN is now the Ghanacard number, SSNIT, NHIS, you can purchase electricity credits using your mobile phone. Every public sector worker will be uniquely identified by the Ghanacard number – no more double salaries. “The motor insurance database, containing the data of all the insurance companies, has ensured that now we don’t have fake insurance certificates. You can dial a short code and check the insurance status of a car before you board. The data of the Births and Deaths Registry is being digitized, to take out fake birth certificates. And now, with the Ghana.Gov platform, you can access all Government services and make the necessary payments without any major human interventions, drastically reducing corruption.” “We are building a new system to underpin the economy,” he explained. “A system that makes for greater transparency, promotes accountability and efficiency in every aspect of
public interactions. It is a system that minimizes incentives to pay bribes and opportunities for corruption in the delivery of public services.” Touching on the theme for the celebration, “faith-based education, morality and nationbuilding”, Dr Bawumia indicated that individual and national, concerted efforts would be required to rekindle the core societal values of the country. “We need to work consciously on the nation’s value systems to enhance the moral temper of the country to help accelerate national development. Our values are very important, and we should hold on to them. “As data indicates, a majority of Ghanaians are religious. Therefore, religion does not only have a profound influence on our moral values and life, but also on the development of our country.” 217 graduates received recognition for their hard work, ranging from Certificate in Ministry (16), Bachelor of Theology (55), Master of Arts in Ministry (91), Master of Divinity (41), Master of Theology (11) and Doctor of Philosophy in Theology (3).
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Government receives GH¢159million dividend from Gold Fields
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old Fields Ghana Limited has presented an interim dividend and guaranteed advance payment, totalling GH¢159million to the government for the 2021 financial year concerning GoldFields' Tarkwa Mine. The second cheque for more than GH¢13 million is the Guaranteed Advance Payment for the 2020 financial year, in respect of Abosso Goldfields Limited, Damang Mine. Mr Alfred Baku, the Executive Vice President and Head of Gold Fields West Africa, presenting the cheque said the government held a 10 per cent share in GoldFields Ghana through a free-carried interest. Mr Ken Ofori-Atta, the Minister of Finance, who received the cheque on behalf of the government, said under clause 6.2 of the ratified Development Agreement between Abosso Goldfields Limited, Damang Mine and the Government, Gold Fields was to pay the government an annual Guaranteed Advance Payment of 5 per cent of profit after tax in case it was not in a position to pay its normal dividend. He said this was because GoldFields decided to reinvest approximately US$1 billion in the mine as part of the Development
Agreement with the government. “The reinvestment project started in 2017, and after three years of hard work, we have achieved more progress than anticipated,” he said. The Foundation has so far invested US$79milion in development programmes and shared-value projects in host communities in the Western Region. He said one of the major projects funded by the Foundation was the 33km Tarkwa Damang road, which cost US$27million and was completed last year. “Another key investment, which is ongoing, is the refurbishment of the T&A Park at Tarkwa into a 10,400-seat stadium, at a cost of over US$16million. This will be the new home of Medeama SC and, in time, will hopefully host the Black Stars in Tarkwa,” he added. He said funding for the
Foundation was primarily through contributions from the Tarkwa and Damang mines and based on their operational and financial results. Mr Baku said for every ounce of gold produced by the mines, one US dollar was donated to the Foundation, in addition to 1.5 per cent of the mines' profits before tax. He said GoldFields was a major contributor to national development and in 2020 the company contributed US$170 million in corporate income tax and royalties, US$23 million as employee pay-as-you-earn and US$20.9 million in dividends to the government. Mr Baku also said the Company contributed over US$2.3 million in COVID-19 support to employees, host communities and the government. Mr Ofori-Atta said the dividend was a surprise income to the
government with the drawing of the National budget. He said Africa was expected to need about $2trillion but currently, Ghana had about 58 million tonnes of potential carbon emission and the country must explore ways to monetise that to build against future pandemics. ”We need to be working with major Corporate entities to discuss the climate issue in a way that also enables us to meet the global challenge of zero-emission by 2030 and we need to get very creative about how to do that,” he said. He said as a gold exporting country and being one of the largest exporters of gold in Africa for the past three to four years, the country needed to have an LBMT refinery of its own. The Minister explained that “if we are to refine 10 per cent of all the gold that we use here over the LBMT license we will end up with about $55million of profits.” Mr Ofori-Atta said Africa produced about 870 tonnes of gold from the 50 main countries a year and it was only South Africa and maybe Zimbabwe that had refineries of capacity. He said the government would need support to be able to build a refinery with LBMT standards, which would allow for the processing of the gold. GNA
AfDB extends US$40m grant to establish DBG
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he Board of Directors of the African Development Bank Group has approved a grant of US$40 million from the African Development Fund to Ghana to further capitalise Development Bank Ghana (DBG), a newly established development finance institution in Ghana. The Development Bank Ghana is designed to provide financing to micro, small and medium sized enterprises as well as small corporates in agribusiness, manufacturing and information and communication technology (ICT). Ghana is pursuing an economic transformation agenda that requires the availability of affordable capital for medium and long-term investment by the private sector. However, there are constraints to private sector development, particularly for MSMEs, which account for the majority of businesses in the country, due to the lack of access to medium and long-term credit.
Commenting on the approval, Marie-Laure Akin-Olugbade, the African Development Bank Group’s Director General for West Africa said: “The project to support the DBG is aligned with Ghana’s Beyond Aid Vision and supports the Government’s efforts to revitalize the economy post-COVID-19. The Ghana Beyond Aid Charter calls for the establishment of a new National Development Bank that is strong enough to mobilize domestic and foreign long-term private capital, in addition to Government’s contributions, toward agricultural and industrial transformation. This institution, which will operate as a wholesale bank, using a private sector model, will provide financial institutions with long-term financing to accelerate Ghana’s industrialization and agricultural modernization.” Eyerusalem Fasika, the African Development Bank’s Country Manager for Ghana, pointed out the impact that the DBG is
expected to have on Ghana’s thriving private sector, which can drive economic growth and deliver shared prosperity. “The project will support Ghana’s COVID-19 Alleviation and Revitalization of Enterprises Support (Ghana CARES) program that identifies the expansion of access to finance for Ghanaian businesses as one of the key measures for economic revitalization and transformation.” Stefan Nalletamby, Director, Financial Sector Development Department, pointed out that: “The DBG project is another example of the Bank Group’s strategy to support African countries to establish new development finance institutions whose designs and structures are aligned with international best practice standards. The DBG is an institution that will ease access to finance for businesses in Ghana and contribute to efforts targeted at lowering the cost of credit in the country,” he said.
Overall, the DBG is expected to yield significant economic benefits to the Ghanaian economy as it seeks to increase access to finance, which is consistently identified by businesses as the top impediment to growth. Increased access to finance would particularly allow creditworthy businesses in the target sectors to invest, innovate and create highquality jobs. In the short term, there is strong potential for job creation in the agriculture and agribusiness sectors, which will be supported by manufacturing along the supply chain to generate high value economic activity and high-quality jobs in the long-term.
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Craft beer brewery for women empowerment
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hree Rwandan women: Josephine Uwase, Jessi Flynn, and Debby Leatt in Rwanda have founded a small local beer industry through craft beer with the aim of reducing poverty amongst local Rwandan woman farmers. The women-owned, womenled brewery core goal is to focus on raw materials sourced from local women farmers in rural areas and to create many jobs along the whole value chain from growing raw materials, supply chain, processing in the factory, and selling beer products. Co-founder of Kweza Craft, Jessi Flynn says Historically beer has always been made by women all around the world, and originally and historically beer was made in Africa, so while Europeans and Americans think it’s a German thing or an American thing and it’s made by men, it’s not actually the global history. So what we want to do, is empower the same women who have been brewing beer at
home, at a small scale, to enter that commercial market where really the profit is made, because with women being economically empowered, they can also decide how to invest in a new business and keep growing the economy. The Craft brewery is a small brewery that produces beer in a traditional or non-mechanized way, beer styles like Sorghum Ale (produced with sorghum and some fruits such as mango),
Ginger Beer, India Pale Ale, Stout, and others are produced under 50 liters every batch. Speaking to Josephine Uwase, brewhouse operator who has been an avid homebrewer since 1994, shares with us the brewing procedure. We make it a point to use either filtered water or mineral water for the craft brewery. **We then add the grains onto the water, after that, we pump the
mixture into a lauter tun, **we then boil, we then proceed with wort separation and cooling, fermentation, maturation, filtration, and carbonation. The challenge is that we are the first, if you are a restaurant, you can go to the shop and buy a pot or buy some ingredients, but we cannot just go down the road and buy some brewery ingredients or equipment, so it’s a challenge to find the ingredients and to find the equipment we need but we are finding some of the things we can work with people here. STAND UP Over $1 million is the expected initial capital contribution for the project, the founders of the brewery say that once the business becomes viable it will create even more opportunities for many women. Diana Iriza, from Rwanda, For africanews.
Ivory Coast gears up for Abidjan metro
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vory Coast wants to have its first metro train to start operations in 2025, three years sooner than projected. The project which will cost over
Zimbabwe seeks to increase mining revenue
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ining accounts for 12% of Zimbabwe’s Gross Domestic Product. Among the wide range of minerals, gold stands out. Large miners produce up to one ton of gold per month, with smaller producers churning out 1.9 tons. To accelerate the recovery of
the sector after the pandemic, authorities are seeking $8 billion to reopen closed mines. Wellington Takavarasha, the CEO of Zimbabwe Mining Federation joins the program from Harare to talk more about the southern African country’s mining sector.
$1.5 billion has been criticized by some as costly and unnecessary. The country says it has secured funding from France to build the project.
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Intra-African Trade Fair 2021 poised to boost commerce across Africa
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he Intra-African Trade Fair (IATF2021) will host key figures from the world of trade, including entrepreneurs, financiers, governments and regulators, on one platform to deliberate on trade acceleration and investment throughout the African continent. Organised by the African Export-Import Bank (Afreximbank) in collaboration with the African Union (AU) and the African Continental Free Trade Area (AfCFTA) Secretariat, IATF2021 is being held at Durban International Convention Centre, KwaZulu-Natal, South Africa, from 15 to 21 November 2021. IATF2021 is expected to attract over 10,000 attendees from across Africa with US$40 billion of trade and investment deals set to be concluded at the event, meaning the conference offers unrivalled business and commercial networking opportunities and will boost intra-African trade and investment. Attendees will be able to see 1,100 exhibitors showcasing their goods and services, while Business-to-Business and Business-to-Government exchanges provide opportunities for further deals, business matchmaking and networking. Speakers at the conference are from some of the highest
tiers of business and government in Africa, with unparalleled commercial and government insight into economic opportunities and threats in Africa. Some of this year’s speakers from the world of politics and government include Cyril Ramaphosa, President of the Republic of South Africa; Chief Olusegun Obasanjo, former President of the Federal Republic of Nigeria; Albert M. Muchanga, African Union Commissioner for Trade and Industry and Dr Vera Songwe, Executive Secretary of United Nations Economic Commission for Africa (UNECA). Many of the continent’s most influential business luminaries in attendance, include Prof. Benedict O. Oramah, President and Chairman of the Board of Directors, Afreximbank and coconvener of IATF2021; Aliko
Dangote, President and CEO of Dangote Industry Limited, this year’s main sponsor; Ahmed Elsewedy, President and CEO of Elsewedy Electric; Akin Dada, Group Executive, Corporate and Investment Bank, Ecobank Group, and many more. This year’s IATF conference will also be taking a deep dive into some thematic areas, with additional networking and conference facilities in each of the following vertical areas: The IATF Youth Start-Up programme will highlight the support needed for youth-owned start-ups and small and mediumsized businesses to thrive, including capacity development, mentoring, access to finance, supportive infrastructure, government policy and market linkages. The Creative Africa Nexus (CANEX) will provide a
platform for Africa’s creative and cultural sectors to connect with policymakers, prominent investors, and thought leaders in the creative sector. The IATF Automotive Show will showcase Africa’s dynamic automotive sector, encouraging the continent’s car and car equipment manufacturers, assemblers, and component suppliers to exhibit their products and find out more about other businesses and market opportunities. Dedicated Country Days will allow participating countries to showcase trade and investment opportunities, as well as any tourism and cultural attraction. South Africa, the host country kicks off on Day One, followed by Egypt on Day Two, Cote d’Ivoire on Day Three and Nigeria on the fourth day.
SAA Hospitality officially to commence business on Dec By Michael Asante Kankam
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he newly established hospitalilty recruitement hub, SAA Hospitality, which recruit and train unemployed Ghanaian youth to various hotels, restaurants and bars will be launched officially on December 4, 2021 at Airport West Hotel, Accra. SAA Hospitality was established by a young graduate with strong entrepreneurial personality and over 15 years of working experience in the hospitality
industry and an associate member of Chartered Institute of Marketing, Ghana. The Chief Executive Officer of SAA hospitality , Spencer Asamoah Amponsah, in an interview with Business24 said, “SAA Hospitality has recruited and trained hundreds of Ghanaian youth into the formal and nonformal sectors of the economy such as hotels. The company has worked in hand with Luxury West Hotel, Thea Villa Hotel and Event Centre, HOTCATT through student
internship placements and Trafix Restaurant in Accra, drafting SOPs for hotel department, and also recommendations on how they can sell their rooms and make sure they meet the target audience.” "We provide brand management and marketing services to support individuals and small medium enterprise. SAA hospitality has won the Emerging Leaders for the British Council and Barclays sponsored event for three consecutive times named the ‘Blazing Trail’ 2014,
2015 and 2017 and I was selected to be part of the Beige Foundation Entrepreneurial Session in 2018," he added. Mr. Amponsah was pleased to share his decision on products and services he would like to specialize in such as event management and services, artiste management and personality marketing, social marketing especially teenage pregnancy and sanitation campaigns – Integrated Marketing Communications, public relations and hospitality marketing, recruitment and training of hospitality staff, food control and audit management , developing of standard operating practices to hotels, among others. As part of its vision and mission, SAA Hospitality seeks to becoming a preferred business hospitality service, the finest hospitality service across the the world.
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Comment/Analysis
MONDAY NOVEMBER 15, 2021
2022 budget, my expectations By Emmanuel Amoah-Darkwah
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he 2022 Budget Statement and Economic Policy is expected to be delivered by the finance minister on 17th November, 2022 in accordance with the Articles 179 and 180 of the 1992 Constitution. As the Minister prepares to present the 2022 Budget, it is important to reflect on the 2021 Budget which was themed ‘Economic Revitalisation through Completion, Consolidation & Continuity’ and subsequently the 2021 Mid-Year Budget. The following macroeconomic targets were set for the 2021 fiscal year; • Overall Real GDP growth of 5.0 percent; • Non-Oil Real GDP growth of 6.7 percent; • End-period inflation of 8.0 percent; • Fiscal deficit of 9.5 percent of GDP; • Primary deficit of 1.3 percent of GDP; and • Gross International Reserves to cover not less than 4.0 months of imports. It is important to assess the fiscal performance of 2021 which will be the yardstick for setting target for 2022 and the medium term. The government of Ghana in the 2021 budget introduced COVID-19 Health Levy of a one percentage point increase in the National Health Insurance Levy and a one percentage point increase in the VAT Flat Rate; Sanitation and Pollution Levy (SPL) of 10 pesewas on the price per litre of petrol/diesel under the Energy Sector Levies Act (ESLA); Energy Sector Recovery Levy of 20 pesewas per litre on petrol/diesel under the ESLA. To defray the cost incurred by cleaning up the financial sector, a levy of 5 percent on profit-beforetax of banks was introduced. More so, government proposed to amend the Fees and Charges (Miscellaneous Provisions) Act, 2018 (Act 983) to enable road tolls reflect an automatic annual adjustment that will be pegged to the previous year’s average annual inflation. With the current inflation rate, road tolls may increase in 2022. With the introduction of these new taxes, provisional fiscal performance for the 2021 half year is indicated below. The 2022 budget will give an update on the above figures but it is clear that revenue target will
be missed. On the other hand, if expenditures are not contained, fiscal deficit target will be missed in the period under review. For the first time in many years, the 2021 budget allocation for interest payment which was GH¢ 35,863,814,494 exceeded all expenditure allocations including compensation of employees which had an estimate of GH¢ 30,313,597,722. Capital expenditure for the 2021 fiscal year is GH¢ 11,422,711,135. This trend is worrying as public debt balloons. Government has indicated to issue Eurobond in the 2022 fiscal year which will further increases Ghana’s debt. Linked to the public debt is debt sustainability indicators. In a recent report by the Economic Governance Platform titled, ‘The Evolution of Debt Sustainability Indicators’, Ghana’s best performance in debt sustainability was in 2011 when the country achieved an annual surplus of growth of 0.3% in that year. In 2021 alone, Ghana requires an additional growth of 3.5% to achieve debt sustainability. Debt Sustainability Index The African Development Bank launched the West Africa Regional Economic Outlook 2021 report titled ‘From Debt Resolution to Growth: The Road Ahead for Africa’ on 11th November, 2021. Ghana is classified as high risk of debt distress. Admitting that Covid-19 is a factor for this
increased debt level, Ghana should not sacrifice the medium term prospects on the altar of high public debt and its accompanying interest rate. Policy Proposals for 2022 1. Scrap some taxes and levies on petroleum prices. Inflation rate for the month of October 2021 was 11% -the highest in 15 months. This is largely caused by increase in petroleum prices which also affects transport fares. A key indicator the Bank of Ghana considers in setting the Monetary Policy Rate (MPR) is inflation. Should inflation rate keep rising, BoG might adjust upwards the MPR which currently stands at 13.5%. 2. With potential tax payers of 15.7 million, government should implement policies to widen the tax net to generate more revenue. 3. Pass the tax exemption bill. Ghana loses 5% of GDP through tax exemptions. This will help increase revenue. 4. Job creation (public and private) is critical. Government should operationalize the ‘Youth Banc’ to provide cheap credit to youth entrepreneurs as trading progresses steadily under the African Continental Free Trade Area (AfCFTA) agreement. Also, bottlenecks to doing business in Ghana should be addressed. 5. Regulatory framework is crucial in robing in the private sector as a catalyst for poverty
reduction and economic development. In December, 2020, Ghana’s parliament passed the Public-Private Partnership Act to actively engage the private sector in delivery of public goods. Government through the Ghana Infrastructure and Investment Fund (GIIF) should seek private sector participation through financing, construction and management of infrastructure. 6. Key sectors (agribusiness, ICT and industry) that have potential to reduce poverty and propel economic growth should be explored. These sectors have great potential to foster economic inclusion, create jobs and deepen integration and connectivity. Agribusiness accounts for 25% of Ghana’s GDP and employs nearly half the labor force. 7. Government in 2022 should explore innovative approach to domestic revenue mobilsation and close fiscal leakages to expand fiscal space. With high rate of debt, government should use Special Drawing Rights (SDR) allocation prudently and also liquidate outstanding costly debt. 8. Securitisation deals are expected in the medium term but government should thread cautiously in order not to enter into deals that will not be in the best interest of the country. 9. Operationalise the Development Bank Ghana. The establishment of DBG will help provide long-term affordable capital for the agriculture and manufacturing sectors which has the potential to lift millions of Ghana’s from poverty. Also, the financing gap of US$6.1 billion (13% of GDP) in the MSMEs sector will be bridged with the establishment of DBG. In Ghana, 74% of MSMEs are estimated to be partially or fully credit-constrained according to the World Bank. 10. A comprehensive review of the Free Senior High School program is needed to ensure efficiency and improve human capital development. Emmanuel Amoah-Darkwah Economist/ Partner @ C-KADD Global e.amoahdarkwah@gmail.com
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News
MONDAY NOVEMBER 15, 2021
Importers caution government against review of benchmark value
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he Importers and Exporters Association of Ghana has cautioned government against the intended review of the 50 per cent benchmark value given to importers. Mr Samson Awingobit Asaki, Executive Secretary of the Importers and Exporters Association of Ghana, made the appeal in a statement discounted the Association of Ghana Industries (AGI) purported projections that “if the benchmark which government gave to importers two years ago was not reviewed, it would lead to the collapse of the local manufacturing sector”. Mr Asaki noted that the association would consider holding massive demonstrations at the port “if the government goes ahead to review the benchmark policy in the upcoming 2022 budget. "As we speak the importers in the country are the only entity riddled with all kinds of taxes and fees and charges. At this point in time the only life line keeping importers and exporters is the benchmark value."
He urged AGI to rather go to government to ask for proper utility tariffs and lower interest rate than asking for the take-off or
review of the benchmark value. "We are hereby appealing to the government not to attempt reducing or even take it off
completely. We shall not hesitate to do the needful if government fall for their so-called empty threats."
Ghanaian entrepreneur funds establishment of an innovation hub at UGBS
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hanaian Entrepreneur and the Managing Director of Agricultural Manufacturing Group Limited (AMG), Mr. Ernest Akwasi Appiah, has supported the development of student entrepreneurs. The alumnus of the University of Ghana Business School (UGBS) donated GHc 520,000 to support the establishment of the UGBS Innovation and Incubation Hub (The UGBS NEST). The donation which was made in 2020 has aided in the completion of a physical structure located at the University of Ghana Business School. The structure has a modern co-working space, training room, meeting rooms, an executive lounge and administrative offices. The UGBS Innovation and Incubation Hub (UGBS NEST) is an innovation centre that nurtures student entrepreneurs, their innovations and incubates them at the hub till breakout. The first cohort of incubates comprising of 5 entrepreneurial teams were admitted into the hub in July 2021. These teams are undergoing
mentorship, training and preparations for several international and local entrepreneurial pitches to refine their concepts and source for funding. On October 28, 2021 a team from the UGBS paid a courtesy call on Mr Appiah. The UGBS delegation included Professor Justice Bawole, Dean of the UGBS; Mr. Emmanuel PokuSarkodie, School Administrator; Professor Bedman Narteh, Head, Department of Marketing and Entrepreneurship; Dr. George Acheampong, Coordinator of the Innovation Hub; Mrs. Mammie Hutchful-Nortey, ORID Liaison for the hub, and the incubatees. At the meeting which was held at the AMG offices, Mr.
Ernest Appiah expressed his appreciation of the gesture shown him by the UGBS team. He further enlightened the team about the operations of AMG as one of the leading fertilizer producers and distributors in Ghana and a contender in the West African sub region. Mr. Appiah also shared his experiences as an entrepreneur and encouraged the incubates to persist in their businesses and innovations because it will help create employment opportunities for several individuals in the country. Mr. Appiah, after the 5 teams had presented their innovations and businesses to him, subsequently presented the teams with a cheque of GHS 100,000 as seed fund to support
their business activities. Mr. Appiah concluded that, as an entrepreneur and an alumnus of the UGBS, he is proud to have supported this cause and would wish to see the progress of the teams in the next few months. The dean of UGBS, Professor Justice Bawole, received the GHS 100,000 cheque on behalf of the UGBS NEST and indicated the j/ school’s profound appreciation for the gesture. The dean also used the opportunity to commend Mr. Appiah on his achievements and the good job he is doing at AMG together with his staff. He also called on other Alumni of the UGBS to come on board and support the creation of the next generation of business owners in Ghana through the UGBS Innovation and Incubation Hub (UGBS NEST). On behalf of the student entrepreneurs, Miss Monica Amable expressed how the teams were grateful to their benefactor, Mr. Appiah, and promised that they would use the funds judiciously to promote their entrepreneurial activities.
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Agribusiness
MONDAY NOVEMBER 15, 2021
World food import bill to reach a record high in 2021
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lobal food trade has accelerated and is poised to hit an all-time record in both volume and value terms, according to a new report released today by the Food and Agriculture Organization of the United Nations (FAO). While global food trade has shown “remarkable resilience to disruptions throughout the COVID-19 pandemic”, rapidly rising prices of food commodities and energy pose significant challenges for poorer countries and consumers, who spend large shares of their incomes on these basic necessities, FAO says in its new Food Outlook. FAO expects the global food import bill to reach an all-time high in 2021 and surpass US$1.75 trillion, marking a 14 percent increase from the previous year and 12 percent higher than earlier forecast in June 2021. The increase is driven by higher price levels of internationally traded food commodities and a threefold increase in freight costs. Developing regions account for 40 percent of the total and their aggregate food import bill is expected to rise by 20 percent compared to 2020. Even faster growth is expected for LowIncome Food Deficit Countries, due to higher costs more than higher food import volumes. Developing regions are facing sharp increases in the prices of basic staples such as cereals, animal fats, vegetable oils and oilseeds, while high-value foods, such as fruits and vegetables, fishery products and beverages are driving the bulk of the
increases for developed regions. Issued twice a year, Food Outlook offers FAO’s reviews market supply and demand trends for the world’s major foodstuffs, including cereals, vegetable oils, sugar, meat and dairy and fish. It also looks at trends in futures markets and shipping costs for food commodities. Takeaways World output prospects for major cereals remain robust, with record harvests expected in 2021 for maize and rice, although cereals utilization for human consumption and animal feed is forecast to grow faster. Following a tight balance in 2020/21, preliminary forecasts for the 2021/22 season point to some improvements in the overall supply situation for oilseeds and derived products, but their respective end-season stocks could remain below average. World sugar output in 2021/22 is forecast to rebound after three years of contraction but still fall short of global consumption. World sugar trade is foreseen to decline slightly because of reduced availabilities in key exporting countries and rising prices. World meat production in 2021 is forecast to expand, principally triggered by a swift output rebound in China, especially pig meat. Notable demand-led output expansions are expected in all major producing regions, except Oceania. A growth slowdown in global meat trade is likely due to anticipated declines in imports
by leading importing regions, especially Asia and Europe. Global milk production in 2021 is forecast to expand, with anticipated increases in all major producing regions, led by Asia and North America. Global trade in dairy products is also forecast to expand, amid the ongoing economic recovery from COVID-19 market disruptions. However, in recent months, the import growth rate has slowed down due to rising domestic production and sluggish consumer demand. Fisheries and aquaculture output in 2021 is forecast to grow by 2.0 percent from the 2020 level, signalling that new market dynamics resulting from the pandemic – which exacted a heavy toll on this sector – appear likely to endure in the long term. Fish trade is bouncing back despite high freight costs and logistical delays. Financial instruments such as futures and options related to major agri-food commodities have failed “to attract the speculative fervour marked by other high-priced years”, the report observes. Special chapter on agricultural input prices FAO experts constructed a Global Input Price Index (GIPI) to help examine the impacts of rapidly rising input prices, especially those of energy derived from fossil fuels, on food prices, future price developments and their likely consequences for global food security. The exercise reveals that the GIPI – comprising energy, fertilizers, pesticides, feed and
seed prices – and the FAO Food Price Index (FFPI) – which tracks the internationally traded prices of major agricultural food commodities and reached a 10year high in August 2021 – have moved in a synchronous manner since 2005, indicating that higher input costs readily translate into higher food prices. In the year to August 2021, the FFPI rose by 34 percent and the GIPI increased overall by 25 percent, compared to the same period in 2020. It was noted that aggregate global measures mask large regional and sector-specific differences within agriculture. Soybean producers, for example, face lower needs of currently expensive nitrogen fertilizer, so they should benefit from higher product prices. Pig producers, by contrast, face high feed costs and low meat prices, crimping margins. The analysis offers insight into potential strains. Sub-Saharan Africa, for example, depends on imports of nitrogen – the price of which is driven by those of fossil fuels - for around 70 percent of supply. It also points to a growing number of countries – now 53 where households spend more than 60 percent of their income on necessities such as food, fuel, water and housing. FAO warns that rising food and fuel prices can have a highly regressive impact on poor consumers and urges particular “vigilance” in this regard.
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Feature
MONDAY NOVEMBER 15, 2021
The rise of intangible capitalism
By Eric Hazan, Jonathan Haskel, Stian Westlake
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n a 2014 book, the Nobel laureate economist Joseph E. Stiglitz and Bruce C. Greenwald argued that the most important societal endowment is the ability to learn. Today, it is increasingly evident that the “learning society” has not only been created, but is starting to drive our economies. From the nineteenth century until about 25 years ago, businesses largely invested in physical infrastructure and machinery, from railroads to vehicles. But in the past quarter-century, investment in so-called intangible assets – such as intellectual property, research, software, and managerial and organizational skills – has soared. Recent McKinsey Global Institute (MGI) research found that, by 2019, intangibles accounted for 40% of all investment in the United States and ten European economies, up 29% from 1995. And intangibles investment appears to have surged again in 2020 as digitalization accelerated in response to the COVID-19 pandemic. We believe that this trend strongly hints at the emergence of a new model of capitalism, in which companies’ success will be measured more by their people and their capabilities than by their machines, products, or services. Moreover, we think there is no going back. Firms such as Amazon, Apple, Facebook, and Microsoft are clearly scaling up dramatically
and achieving hypergrowth. Intangibles may well be driving this phenomenon. After all, there is certainly a correlation between investment in intangibles and higher productivity and growth. MGI’s research found that companies in the top quartile for growth invest 2.6 times more in intangible assets than the bottom 50% of firms. Similarly, economic sectors that have invested more than 12% of their gross value added (GVA) in intangible assets grew 28% faster than other sectors. Economies in which intangible investment is increasing are also posting growth in total-factor productivity. Notably, the only companies that were able to maintain 2019 rates of growth after the pandemic hit in early 2020 were those that had invested significantly in the full range of intangibles: innovation, data and analytics, and human and brand capital. In a dematerialized, digitized, knowledge-driven world, corporate returns, productivity, and economic growth will increasingly be tied to such assets. But unlocking their true value requires not only investing in them, but also developing the skills and managerial know-how, or human capital, needed to make effective use of them. An MGI survey of more than 860 executives indicates that the major difference between fast-growing and slow-growing firms is that the former not only invest more in intangibles and appreciate their importance for boosting competitive advantage, but also focus on deploying them
effectively. The growing salience of intangibles thus makes the imperative of raising skills and capabilities even more acute. This emerging new form of capitalism is potentially marvelous for qualified people with highly portable skills, but somewhat scarier for the less skilled and less digitally savvy. Companies that lack the resources to make necessary investments in intangibles also could fall further behind. The dematerialized economy, if not managed well, thus risks being a recipe for inequality. Previous MGI research found that a key distinguishing feature of “superstar” companies is their investment in intangibles, including large-scale spending to raise the skills and capabilities of their people. Back in 2019, for example, Amazon announced plans to spend $700 million over six years to retrain 100,000 employees. Other tech giants, including Google and IBM, have developed similar schemes. But the growing concentration of revenue and profit in a small group of successful firms risks increasing disparities of income and wealth. Intangibles-heavy superstar firms tend to employ fewer, more highly skilled, and better paid people who are generally more productive than employees in less digitized businesses. If these superstars pull even further ahead, then labor’s share of national income – the percentage that goes to worker compensation – could decline
even more. This is not to argue that successful intangibles-based firms should be constrained from expanding further or from training their own people. Such firms are important sources of innovation and highproductivity growth, and have formidable incentives to continue investing in intangibles. Rather, companies and governments should do everything they can to spread the skills that will open up opportunities for more individuals and firms in the digital economy. Huge value is at stake. Given the mounting evidence of the correlation between intangibles investment and GVA growth, executives and policymakers should ask themselves what it will take to realize the opportunities intangibles represent. If an additional 10% of companies were to attain the same share of intangibles investment and GVA growth as top growers, this could produce an additional $1 trillion in GVA, or a 2.7% increase across sectors in OECD economies. Governments can play a key role in reskilling and in ensuring that the right knowledge infrastructure is in place. That means focusing on education, internet and other communications technologies, urban planning, and public science spending. The digitized, dematerialized economy is already here, and its spread is unstoppable. The challenge is to manage the transition in a way that benefits the many and not just the few.
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Feature
MONDAY NOVEMBER 15, 2021
A strategic compass for Europe
By Josep Borrell
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compass helps one find one’s way, and the “Strategic Compass” that I have drafted at the behest of the European Council will serve as an operational guide for the European Union’s development and decision-making on security and defense. It is now heading to EU foreign affairs and defense ministers for discussions next week. The compass is designed to answer three questions: Which challenges and threats do we face? How can we better pool our assets and manage them effectively? And what is the best way to project Europe’s influence as both a regional and global actor? Our overall threat analysis shows clearly that Europe is in danger. The EU risks what I have called a “strategic shrinkage.” This can be perceived from three points of view. First, our economic reach is becoming increasingly circumscribed. Thirty years ago, the EU represented one-quarter of the world’s wealth; in 20 years, it will account for just over 10%. Our demographic shrinkage develops similarly: By the end of this century, Europe will account for less than 5% of the world’s population. More fundamentally, some of our economic competitors hold values that are very different from ours, thus posing a threat to our normative power. The EU must integrate this fact into its policymaking, recognizing that the competition for global standards is already playing out in the race for mastery over
artificial intelligence, cloud computing, semiconductors, and biotechnology. Second, the EU’s strategic theater is increasingly contested, owing to challenges by new ambitious actors, demonstrations of military force, and destabilization strategies featuring cyber warfare and disinformation. Gone are the days when peace and war constituted two clearly distinct states. We are and will increasingly be confronted with hybrid situations that require a broad range of defensive assets. Finally, the EU’s political sphere is being squeezed, and our liberal values increasingly contested. In the “battle of narratives,” the idea that universal values are really just Western constructs has been gaining traction. The old assumption that economic prosperity would always lead to democratic development has been refuted. In navigating this increasingly competitive strategic environment, the EU must become a provider of security for its citizens, protecting our values and interests. But to do that, it will need to act faster and more decisively when managing crises. That means anticipating fast-changing threats and safeguarding its citizens against them; investing in the necessary capabilities and technologies; and cooperating with partners to achieve common goals. Such measures will increase our capacity to deter attacks, and to react to one if it comes. The main value of military force is not that it allows us to solve problems, but that it can help to
prevent problems being solved to our detriment. That is why the Strategic Compass proposes an EU capacity for rapid force deployment across the entire spectrum of actions envisaged by EU treaties. Past attempts to deploy EU forces swiftly have met with only limited success. But the Strategic Compass aims to make such deployments more readily operational and effective in three ways. First, it would follow a modular approach, with its composition defined by concrete scenarios and reinforced by joint training, rather than being prepositioned as a permanent force. Second, there would be clear guidelines stating that it is the mission that determines the type and size of the force, not vice versa. And, third, we could step up our efforts to overcome various shortcomings that have long hampered our operational capabilities, with clear actions that should receive priority. All of this will require both legitimacy and flexibility. Who decides, and how should decisions be implemented? Without calling into question the principle of unanimity, it is possible to act creatively by activating certain provisions such as constructive abstention or Article 44, which allows for the creation of coalitions approved by the European Council. Above all, we need political will (without which nothing is possible) and operational efficiency (without which everything is pointless). But the EU should of course not limit its actions to the deployment of military forces. The Strategic Compass also focuses on cyber,
maritime, and space security. To anticipate threats, it proposes boosting intelligence capacities and expanding the suite of tools for countering hybrid and cyberattacks as well as foreign disinformation and interference. It also sets targets for investment to equip our armed forces with the necessary capabilities and innovative technologies, to fill strategic gaps, and to reduce technological and industrial dependencies. Finally, let me emphasize that this effort in no way contradicts Europe’s commitment to NATO, which remains at the heart of our territorial defense. This commitment should not prevent us from developing our own capabilities and conducting independent operations in our neighborhood and beyond, especially at a time when US policymakers’ attention may be focused elsewhere (not least on the Indo-Pacific). European strategic responsibility is the best way to reinforce transatlantic solidarity. This concept is at the heart of the new dialogue on security and defense between the United States and the EU. But all Europeans should understand that the Strategic Compass is not a magic wand. It is for the EU member states to determine whether today’s geopolitical shifts will be yet another unheeded wake-up call, and the renewed debate on European defense yet another false start. The Strategic Compass is an opportunity to meet Europe’s security responsibilities directly, in front of our citizens and the rest of the world.
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Feature
MONDAY NOVEMBER 15, 2021
Climate change vs. the Sino-American cold war
By Daron Acemoglu
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he last-gasp effort at the United Nations Climate Change Conference (COP26) to keep global warming below 1.5° Celsius, relative to preindustrial levels, was destined to fall short, regardless of how many heads of state and business leaders flew to Glasgow. For the world to meet even a 2°C target requires collaboration between the United States and China. Climate change represents a unique opportunity for the two countries to cooperate, and their surprise announcement of a plan to work together on curbing methane emissions provides some hope. But the current geopolitical environment stacks the cards against broad cooperation. To have even a fighting chance of achieving the Paris climate agreement’s objectives, the world must reduce consumption of coal, oil, and gas to almost zero in the next decade, implying that most available fossil-fuel reserves must remain in the ground. That outcome is not in the cards, despite all the recent decarbonization pledges. China, for example, is still investing in new coal plants, building more than one per week in 2020. India has nearly doubled its coal consumption over the last decade, while refusing to commit to a meaningful netzero emissions target. And Russia is doing almost nothing, claiming that its forests, tundra, and swamps will absorb enough carbon to render it carbon neutral by 2060. The US, too, is proving unequal to the challenge, and it cannot rely on the same excuse as India – or even as China. It can afford to invest much more in renewable energies, and to support the broader global transition to cleaner technologies. Yet it is
still subsidizing the fossil-fuel industry, rather than taxing carbon emissions and regulating the big energy companies that bear most of the blame for the problem. (That said, Iran, Russia, Brazil, China, and India are even worse offenders when it comes to fossil-fuel subsidies.) To reduce emissions and stop the extraction and combustion of existing coal, oil, and gas reserves, there is no substitute for a global carbon tax and sustained support for the development of green technologies. The European Union has taken a first step toward a global carbon tax by proposing not just a domestic tax on fossil fuels but also a carbon border adjustment mechanism (tariff ). For the carbon tax to have a meaningful impact, it will need to be set sufficiently high. Right now, carbon taxes within the EU range from €116 ($134) per metric ton of carbon dioxide in Sweden to less than €0.10 per ton in Poland, with some major economies, such as Italy, having no carbon tax at all. But even with a robust European carbon tax and tariff regime, we would still need the US and China to adopt and enforce similar policies in order to keep climate change in check. Existential challenges sometimes do bring countries together. The US, Britain, and the Soviet Union joined forces to defeat Germany and Japan during World War II. And despite deep disagreements, Europeans and Americans united to confront the postwar Soviet threat. Could the US and China work collaboratively to combat climate change? Perhaps, but only if there is public pressure to do so in both countries. At first blush, this appears unlikely. The US political system remains highly vulnerable to lobbying by Big Oil, which is doing everything it can to block or slow-roll meaningful action,
while actively greenwashing to buy time. Moreover, US President Joe Biden’s administration, understandably, is focused on tackling formidable domestic challenges related to infrastructure, poverty, inequality, and polarization before next year’s midterm elections, when his Democratic Party may lose its congressional majorities. Meanwhile, the sixth plenum of the Communist Party of China has just commenced in Beijing, where the focus will be on consolidating President Xi Jinping’s rule and the CPC’s dominance over the population. The Chinese leadership understands that it must maintain tight control over data and media, while still delivering sufficient economic growth to stave off discontent within the country’s growing middle class. As a result, climate change is not an immediate priority for the CPC, and a global carbon tax would be a major impediment to its main objectives because it would eliminate a major source of Chinese exports’ cost advantage: cheap coal. It also would force a much faster economic restructuring away from fossil fuels than the current leadership would like. Despite the two countries’ recent hopeful announcement on methane, we cannot therefore bank on political elites in the US or China to make climate change a high priority. We do not need to. In both countries, there is significant public demand for meaningful climate policies. Around 70% of Americans accept that global warming is happening and would support a carbon tax on fossilfuel companies, and 86% would like more funding for innovation in renewables. Even progressive Democrats’ more ambitious “Green New Deal” proposals are
popular with voters. There is also a demand for stronger climate policies within China (notwithstanding Western media caricatures of a docile population that is wholly subservient to the Party). Even as the CPC presides over one of the most intrusive campaigns of media manipulation and repression in history, it must heed public sentiment. Clean air and other environmental concerns are hot-button political issues in China, and the country has a tradition of climate activism. The European experience has shown that such activism can be very influential. Although polarization and other policy priorities have crowded out climate concerns in the US, this could easily change once some of those items are checked off the list (as may happen with Biden’s infrastructure and “Build Back Better” plans). In China, it is difficult to forecast how the authorities will respond to climate activism. They may try to suppress it. But, ultimately, Xi needs a certain level of public support to maintain his grip on the CPC (even if he has succeeded in sidelining many rival factions). He knows that his legitimacy – not to mention his legacy – may come to hinge on whether he can respond effectively to mounting concerns about the climate and the environment. Meaningful US-China climate cooperation would produce major knock-on benefits, by dialing down tensions in other areas such as trade or the status of Taiwan. Just as the Cold War drove cooperation between the US and European powers, the climate crisis could still lead to less hostile Sino-American relations. The outcome will not depend on backroom deals in Glasgow, but on whether Chinese and US leaders feel public pressure to move in that direction.
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NO. B24 / 274 | NEWS FOR BUSINESS LEADERS
MONDAY MAY 3, 2021
MONDAY NOVEMBER 15, 2021
Tecno Mobile opens preorder for Spark 8 series
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ecno Mobile, one of the top mobile phone brands in Africa and a major player worldwide, is set to unveil another bold and groundbreaking TECNO Spark design - The TECNO Spark 8 series. The TECNO Spark series is one of the most sought after models on the Ghanaian market because of it’s youthful and futuristic nature. The TECNO Spark 8 Series comes in an iconic design equipped with an ultra-clear 50MP main AI Quad Camera and a 8MP selfie camera that brings more details to perfect moments. With its speedy octa-core
processor, the TECNO spark 8 series boasts of a 128 GB big ROM space to store important files
and 4 GB RAM for a smooth user experience. It also comes with a power-optimized 5000mAh
power house battery for a long lasting battery experience. Enjoy quality cinematic audiovisuals with 6.52" HD+ Dot Notch Screen and a DTS Stereo Sound Effect. Spark your creativity with other amazing elements such as the self-developed panoramic shooting, 1080P time-lapse photography, side fingerprint unlocks, soplay music mix, AI bokeh effect and many more. Pre-order for the TECNO Spark 8 series is available from 15th November 2021 in all accredited TECNO shop nationwide with a minimum deposit of GHS 200 to receive amazing gifts.
Akufo-Addo applauds 63 years of Ghana’s co-operation with UNESCO
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Just as we were the first country, south of the Sahara, to gain our independence, Ghana’s distinguished diplomat, Patrick Seddoh, was the first African to be elected chairperson of the Executive Board of UNESCO in 1983. We were also the first African country to have a female representative on the Executive Board, in the person of another distinguished diplomat, Mrs. Therése Striggner-Scott. I say this to demonstrate how proud we are of our membership of UNESCO.” These were the words of the President Nana Addo Dankwa Akufo-Addo at the 75th anniversary celebration of the founding of United Nations Educational, Scientific and Cultural Organization (UNESCO), in Paris, France. Speaking at the ceremony, President Akufo-Addo indicated that UNESCO is, arguably, the outstanding global agency to have emerged out of the formation of the United Nations. Ghana, the President said, was not there at that seminal ceremony in London, as she were entering, at the time, the active phase of her struggle for freedom from British colonial rule. “But twelve (12) years later, in 1958, a year after our independence, we took our
rightful place as a member of UNESCO. It has since been sixtythree years of fruitful, cordial cooperation, and the benefits are evident,” he said. According to President AkufoAddo, from the training of science teachers for our schools in 1965, UNESCO has helped shape many policies in Ghana’s educational sector, including the recent National Teacher Policy, the Science, Technology and Innovation Policy, and the mainstreaming of biosphere conservation plans in the national development agenda. “At the time when there was only one media house in Ghana, needless to say state-owned, UNESCO helped establish private, independent newspapers and radio stations, contributing to the making of a vibrant and free media, the envy, today, of many on the continent, and, indeed in the world,” he said. The President continued, “With Ghana serving as the unfortunate location for seventy-five percent (75%) of the slave dungeons built on the West coast of Africa to facilitate the barbaric, inhumane Trans-Atlantic Slave Trade, we have been able to preserve significant numbers of these World Heritage sites with the assistance of UNESCO”.
In contemporary times, he noted that UNESCO has been able to redefine and reposition itself to address the pressing needs of the world. “When the pandemic of COVID-19 struck, it assisted several countries, including Ghana, to help ensure that the education of hundreds of thousands of children was not truncated,” the President said. Just as UNESCO believes that education is a human right for all throughout life, President AkufoAddo indicated that Ghana, ”through the Free Senior High School policy”, is committed to every Ghanaian child having access to a minimum of senior high school education”. Tertiary education, he added, has also seen a major boost in infrastructural development,
with some sixty (60) public tertiary institutions now able to accommodate our fast-expanding student population. With UNESCO’s mandate broadening considerably beyond what the founding members may have envisaged, President AkufoAddo stressed the importance of its niche areas of expertise not being compromised. “UNESCO is its Member States, this anniversary is ours too. It has been seventy-five (75) years of multilateral solidarity, and we must continue for the next seventy-five (75) years to deepen our co-operation even further in the areas of education, natural sciences, social and human sciences, culture, communication and information to achieve the future we want, and leave no one behind,” the President added.