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FRIDAY SEPTEMBER 17, 2021
BUSINESS24.COM.GH
Monday September 20, 2021
NO. B24 / 250 | News for Business Leaders
Making a tangible impact through innovation in Africa
Feasible recommendations to Ghanaian bond issuers on managing debt vulnerabilities in the covid-19 era
See page 17
See page 20
Insurance chief calls for innovation to drive market growth
Commissioner of Insurance Justice Yaw Ofori
By Patrick Paintsil p_paintsil@hotmail.com
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ith underwriters facing rising threats to customer retention,
insurers may want to nurture loyalty and offer innovative products that exceed market expectations to sustain their business and ultimately drive the growth of the sector, the
Gov’t takes steps to curb extractive sector corruption risk By Benson Afful affulbenson@gmail.com
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overnment has moved to address corruption risk and enhance transparency in the extractive sector, as it launched the Opening Extractive Programme (OEP) to, among other things, advance the beneficial ownership transparency
Ghana is among nine countries globally piloting the Opening Extractive Programme , with the collective aim of tackling corporate opaqueness.
Cont’d on page 3
Commissioner of Insurance, Justice Yaw Ofori, has advised. According to him, entrenched trust and transparency in business practices across the insurance landscape would drive public uptake of insurance products, sustain the industry and grow the economy. “Insurance is the delivery of a promise in the future; the growth of any insurer is hinged on the trust and confidence of its customers. Systems and procedures must be in place to ensure sterling service delivery; digitalisation also presents better prospects for enhanced efficiency,” he said in a speech read on his behalf at Cont’d on page 2
DVLA wants review of Road Fund allocation By Eugene Davis ugendavis@gmail.com
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he board chairman of the Driver and Vehicle Licensing Authority (DVLA), Mr. Frank Davies, has appealed to government to increase the authority’s share of the Road Fund to enable it undertake planned reforms. The DVLA currently receives 15 percent of the fund, a portion which it feels is not commensurate with its activities and new responsibilities it is expected to carry out. Cont’d on page 3
An exclusive interview with the founder of Accra Business School See page 7
See page 5
Cont’d on page 2 Cont’d on page 2
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Editorial / News
FRIDAY SEPTEMBER 17, 2021
Editorial Insurers must regain public trust with reliable service delivery
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nsurance uptake in the country is still lagging as evidenced by the stagnation of the insurance penetration rate which has been hovering under two percent for quite a long time, even as the number of insuring firms, brokers and allied services providers keep soaring by the day. The fact is that people are still holding on to some r prejudiced or relatable experiences that have shifted their minds aways for securing one form of insurance product or the other. From instances where policyholders feel they were illinformed about the products that were sold to them to the bureaucracies in the claims process, there has always been that negative image about the
insurance business so much so that several innovations and remedial actions from industry players are yet to influence public perception. With the pandemic affecting people’s disposable incomes, it is without a doubt that insurers are faced with the daunting tasks of regaining public confidence, wooing prospective insurables and retaining same. The sector regulator has clearly stated that to be up to this task, insurers must endeavour to meet the risk needs of clients through innovative ways. One of these ways is to nurture loyalty and retention, by meeting or exceeding the policyholder’s expectations. According to the National Insurance Commission,
retaining customers and building customer loyalty is good for any insurance business in terms of the cost of managing accounts and the opportunity for referral business. There is room for the growth of the Ghanaian insurance market, and despite the risks that growth comes with, insurers must develop strategies to break the glass ceiling to stay relevant in these times of digitalisation. We agree that transparent and consistent business practices will increase trust among the public for insurance products thereby leading to an increase in the uptake of insurance in Ghana. This will ultimately result in the sustainable growth of the insurance industry and the economy.
Insurance chief calls for innovation to drive market growth Continued from cover
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the launch of Allianz Insurance’s customer rewards promo dubbed “Allianz Cares” in Accra. “There is room for the growth of the Ghanaian insurance market, and despite the risks that growth comes with, we [insurers] must develop strategies to break the glass ceiling, especially because insurance is sold and not bought,” he added. The NIC boss further observed that there are opportunities for growth in the domestic insurance market, with rising population and incomes amid the relatively low insurance penetration rate. He said the regulator remains
focused on strengthening solvency, protecting policyholders’ interest, and creating an enabling environment that encourages the development of products that respond to customers’ needs. “We are optimistic that this initiative will significantly improve public safety and bring long-term returns to the company,” the NIC boss said of the Allianz Cares promo. The consumer-reward promotion, which runs till March 31, 2022, will gift free branded Allianz first aid kits to existing and new customers who purchase a motor or home and personal accident insurance package from
any Allianz Insurance office in Accra, Kumasi, Tema and Takoradi. “We would not be where we are today without the support of our clients; that is the reason we are rewarding and putting the health and safety of our customers at the forefront of this promotion,” said Darlington Munhuwani, Chief Executive Officer of Allianz Insurance. “We go through our daily lives knowing fully well that health risks can occur, yet many don’t have first aid kits in their cars and homes. It’s time for every Ghanaian to own a first aid kit, and this is our contribution to this campaign. This will help save lives in emergency situations,” he added.
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FRIDAY SEPTEMBER 17, 2021
Gov’t takes steps to curb extractive sector corruption risk Continued from cover programme in the country. Ghana is among nine countries globally piloting this initiative, with the collective aim of tackling corporate opaqueness. The other eight countries are Argentina, Indonesia, Liberia, Mexico, Mongolia, Nigeria, Philippines, and Zambia. The Deputy Minister for Finance, Dr. John Ampontuah Kumah, noted that obscurity of ownership in the extractive sector remains an impediment to Ghana’s quest to clamp down on money laundering and evasion of tax. “Corporate anonymity remains the major obstacle in the fight against money laundering, corruption, and illicit financial flows. The cross-cutting benefits of beneficial ownership transparency in combatting tax evasion and promoting safe trading and investment are also well documented,” he said.
Dr. Kumah, who is also the Member of Parliament for the Ejisu constituency, expressed the hope that beneficial ownership transparency would to a large extent lead to an increase in revenue, as the initiative will expose evaders and enforce tax compliance in the extractive sector. “Today’s occasion is a
significant step in the government of Ghana’s efforts to tackle corruption and increase domestic revenue mobilisation, necessary to finance the Ghana Beyond Aid agenda.” He said the initiative will enable Ghanaian citizens, CSOs, the media, MDAs and competent authorities know who exactly owns and controls companies,
and therefore be able to “follow the money” and hold companies and individuals accountable. “By reducing the scope for corruption, transparency of the beneficial owners of companies increases the chances that revenue from extractive projects will be used for development, rather than the enrichment of the few,” he said. Dr. Emmanuel Steve Asare Manteaw, a policy analyst, noted that to achieve success with this initiative, there is the need for regulatory agencies like Registrar-General’s Department, Petroleum Commission, Minerals Commission, EOCO, and FIC to coordinate to have a due diligence system that can verify information received from supposed owners within the extractive sector. Key stakeholders in attendance at the launch were Registrar General’s Department, Ghana Chamber of Mines, civil society organisations, development partners from the Extractive Industry Transparency Initiative, and officials from the Ministry of Finance.
DVLA wants review of Road Fund allocation Continued from cover “We plead most specially with you [the Transport Minister] to look into the Road Fund for us.
Our percentage still stands at 15 percent,” said Mr. Davies during the inauguration of the board in Accra. “With the announcement you have made regarding the tracking
system for articulated trucks and other heavy equipment, which will be rolled out soon, we have added responsibility, and that comes with onerous financial obligations,” he added.
Kafui Semevo, Director, Driver Training, Testing and Licensing at DVLA, also backed the call from the board chairman by arguing that the authority bears the full cost of printing roadworthy certificates, adding that what it receives from the Road Fund is not adequate to support its activities and operations. “We have introduced a lot of technologies, and there is the need for roadworthy certification to also be automated— and this does not come cheap. We are hopeful the review of the percentage would be appreciable to enable us implement all the reforms we plan to undertake,” he told Business24 in an interview. The DVLA is expected to begin the registration and tracking of earthmoving equipment that is brought into the country. It also continues to decentralise its activities and is in the process of opening four new branch offices in four districts of the country.
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FRIDAY SEPTEMBER 17, 2021
Treepz goes live to offer convenient mobility services
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ide hailing firm, Treepz, has officially launched in the country in the bid to provide more convenience to commercial vehicle users (trotro) as well as offer its platform to individuals and organisations in need of mobility services. The company has designated the country as its hub in the sub-region. The move is coming at a time the continent’s public transportation sector is gradually evolving with the emergence of new technology-driven modes of transportation. The Treepz ride-hailing services offer good opportunities for both drivers and users in the form of increased choices and lower cost of transport services. Fifteen brand new Toyota and Hyundai mid-size buses (11-15-seater) have been deployed to provide ridehailing services in Accra for the start and the number would be scaled up to 100 vehicles by the end of the year 2022.
Treepz is rebranding of Toronto-headquartered shared mobility startup, Plentywaka after the later acquired Stabus, one of Ghana’s leading mobility startup to expand its operations on the continent. Speaking at the launch, the Deputy Minister of Transport, Fredrick Obeng Adom, said: “By this laudable initiative, employment has been created for some Ghanaians. We should be happy about this development and resolve to support and promote this business to grow to provide even greater benefit to the national economy. The good news is that Treepz attaches great importance to customer satisfaction and also has an elaborate welfare package for its drivers. The service itself is quite comfortable. I urge all and sundry to patronize it to ensure it is not only successful but also becomes a dominant midsize hailing transport service in
Ghana.” Treepz Co-Founder and CEO, Onyeka Akumah, said the company is excited about the Ghanaian market and would want to scale up its service with time. He added that one thing the company prides itself on safe travel. “You should expect more travel options; one of the things we do is to allow people to move from bus stop to bus stop. In addition to that is also aggregating different bus operators across Accra, Kumasi, the entire region. This would
offer people the opportunity to travel from city to city with these bus operators.” He added that the company is thinking of injecting more funds to help stabilize its operation in these difficult times of COVID-19, where the transport sector has been largely affected. “Accra has become a hub for us to expand into other regions as well. It has borders in Côte d'Ivoire, Togo, Benin, touching into Nigeria which is like an operational base,” he said.
ACCA, YIN provide career guidance to students in next generation bootcamp
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he Association of Chartered Certified Accountants (ACCA) in partnership with Young Investors Network (YIN) has held the next generation bootcamp to provide career guidance to students in the
second cycle institutions. The bootcamp, which is an initiative of ACCA also aimed at enlightening the final year students, especially those undertaking business programmes on the different
courses and opportunities they can pursue after senior high school. It also sought to update the students about the future of work and educate them on financial literacy, urging them to
participate in the save a cedi a day program. This year, students from eight schools were privileged to benefit from the bootcamp. They included Legon Presec, Kinbu Senior High Technical School (SHS), Kwabenya SHS, Labone SHS, St. Thomas Aquinas SHS, Ghanata SHS, Accra Wesley Girls’ SHS, and Tema SHS. These objectives were achieved with the support from representatives from ACCA and YIN , teachers, and students. This research shows the gap which exists in financial literacy education among the youth. With the save-a-cedi-a-day programme, for example, we have been able to get most of the students who participated in the Bootcamp. In addition, we handed awards of distinction to the top ten best business students from the senior high schools with which we’ve collaborated. With this positive feedback, we can confidently say that the outlook of this bootcamp looks very promising as we have successfully impacted over 900 students with financial literacy and career guidance.
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FRIDAY SEPTEMBER 17, 2021
An exclusive interview with the founder of Accra Business School Continued from cover
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n this pandemic era, many corporate institutions, including universities, are devising strategies to stay in business. Business24 had a chat with the founder of Accra Business School, Bishop Gideon Yofi Titi-Ofei, to discuss the past, present and future of the school he set up as a specialised business university with Christian values. Why did you decide to build Accra Business School (ABS)? I believe that there is a direct correlation between democratic stability and economic empowerment, and for the last 30 years or so, Africa has invested a lot in democratic development. For that to be sustained, we need to create job creators. So, when I realised that business schools across Africa turn out job seekers, I decided to create a business school that will create job creators. That’s why we started Accra Business School. The mission of Accra Business School is to create job creators. People who can create jobs, increase incomes and reduce poverty. That has been our mission, and that is why in our lecture halls we have a hybrid of industry professionals and astute academicians. The industry professionals bring industry to the classrooms and the academicians take the classroom to the industry. Can you describe the working culture of ABS in the context of its service to students, alumni and society? The working culture of Accra Business School is driven by our understanding that the student is not just a student but a customer. So, we are a customer-centric institution and we ensure that the customer is always right. As a result of that, our core values are actually structured on the acronym LEADERS. ‘L’ is Listening, so we listen to our students and their feedback is most important thing to us. And ‘E’ is Excellent, because we believe that we must perform at the highest level for our students. The ‘A’ is Access. We believe that anybody that walks into our school must live his or her educational dreams. We should
not turn anybody away, and so we have created multiple pathways for anybody to have access to our school. We have a slogan, we say, “All manner of learning opportunities to all manner of people in all manner of ways.” The ‘D’ in LEADERS is Dedication. We ensure that we have a dedicated staff that are available to offer quality services to our students. The second ‘E’ in LEADERS is Expertise. We put in our lecture halls the top from industry and from academia to deliver. The ‘R’ is Relationship. For us, we are friends to our students. It is kind of a small family when you come to Accra Business School. We are a small family. And then the ‘S’ is Spirituality. We are a Christian business school and the spiritual development of our students is very crucial. Another slogan of Accra Business School is, “We inform the mind and transform the heart.” So while many schools are informing the mind, we are informing the mind and transforming the heart at the same time.
all our students and staff have it at the back of their minds that we model Jesus’ leadership style. So when you come to Accra Business School, I’m directly involved in every work from the job of a cleaner to the job of the President. I get involved to make sure I can offer a bit of that kind of servant leadership qualities.
What unique values have you instilled in your employees?
Is ABS value-based? In other words, what value or solution is ABS providing to societal problems?
The unique value in Accra Business School is the servant leadership value model after Jesus Christ. As a Christian institution,
What do you want ABS to be known for when it comes to tertiary education in Ghana and in the sub-region? I think that we want Accra Business School to be the most prominent business school across the continent. For that to happen, we want people who come to our school to leave with one major focus: that they never left the same when they came. For us, we believe that every individual has a dream and we are there to interpret that dream. So people come in here as dreamers and leave by realising their dreams. That is what I want Accra Business School to be known for.
Our value proposition is driven by three simple statements. They
are: flexible learning, flexible entry, and flexible payment. Flexible learning because we do not expect our students to twist their lives to suit our programmes. We have rather twisted our programmes to suit their lives. That is why at Accra Business School, you can study and still have time to do the things that you want to do. The most important things in your life such as spending time with your family, watching football with the guys and having conversations with friends. We do not believe that taking a course in Accra Business School should deprive you of the things that are very important to you. So our schedules are very flexible, so you don’t need to change your schedules to study with us. For the flexible entry, we have created multiple pathways for people to enter into our courses in Accra Business School. And then flexible payment, our school fees are flexible that you choose your own payment terms or plan. We have three payment plans and we allow you to choose your own payment plan according to your financial capability. What do you think is the biggest strength of ABS now? I think Accra Business School’s biggest strength is the hybrid of industry professionals and astute academicians that we put in our lecture halls. But what even makes us stronger are the quality of students that we attract, the high calibre of individuals that come to our school, and the conversations that take place during lectures. Sitting in our lecture halls is just like being in your work place. We always say that at Accra Business School we sit in a business class! What unseen opportunities do you envisage may result in making ABS a huge success? I think that the opportunity we have as an institution is that Africa is a very large continent with a huge population. Most of these are young people and are looking for educational opportunities, and I think we offer such a unique combination of courses that most business schools do not offer. Like I always say, when you walk in here, there will always be a course for you.
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Forty Under 40 awards nominees announced
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he nominees for the fifth edition of the Forty Under 40 awards have been announced. The awards are the initiative of Xodus Communications Limited and it seeks to identify, honour and celebrate a cross-section of the nation's most influential and accomplished young business leaders under the age of 40 from a wide range of industries. The awards also aim to puts the spotlight on these young achievers not only to celebrate them but also build a strong platform for them by giving them a voice to motivate the next generation of industry pacesetters while building a positive attitude in youth to strive for excellence at a tender age. Speaking at the just-ended Business Forum and nominees announcement in Accra, the Executive Director of Xodus Communications, Richard Abbey Junior, said the 2021 Forty Under 40 Awards received 308 entries from various parts of the country and industries. "Individuals were disqualified based on eligibility, thus they were not chief executive officers nor co-founders of their companies.
82 more applicants did not meet the first criteria selection process. The selection into shortlisted nominees requires some significant achievements with some degree of evidence from the nominator or the nominee," he said. The fifth edition of the awards which is slated for October 8, 2021,
at Kempinski Gold Coast Hotel is in partnership with Ministry of Tourism, Culture and Arts and it is under the supervision of an Awarding Board with eminent members of the society comprising; Professor Atta Peters, Dr Ken Kwaku, Professor Essilfie Conduah, Dr Ato Conduah and Dr Paul Fynn.
The award category covers a wide range of all the various sectors you can think of, ranging from banking and finance, energy, family business, agriculture, theatre and arts, journalism, fashion, law, sports, event management, health, technology and innovation amongst others.
GCB opens new branch In Tema Community 25
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CB Bank Limited (GCB) has opened a new branch in the Community 25 of Tema Metropolitan Area of the Greater Accra Region. The new branch is located within the Tema Community 25 Shopping Mall and will offer banking services to customers and residents in the area. This is in response to the growing business population, opportunities and for the convenience of businesses and customers in the environs. Mr. John Adamah, the Head of Consumer Banking Department of GCB, said with the opening of the Community 25 Branch “we can all heave a heavy sigh of relief as we bring to an end the long and tortuous journey to get a presence along this stretch and bring banking services closer to the doorsteps of our valued customers at Community 25 and its environs.” Mr. Adamah explained that originally the branch operated from the Central University campus but has had to be expanded to cater for the needs the entire community.
He said GCB is however, maintaining it presence on the campus by way of an Agency to cater to the needs of the University community. “With the new branch and Agency on campus GCB extends our channel reach and depth by one more Agency bringing our outlets to 184 branches, 20 Agencies, over 300 ATM terminals, over 20,000 G-Money Agents and a number of Point of Sales devices, is unprecedented on the Ghanaian banking landscape,” Mr. Adamah said. “Our rich product range also provides variety to our cherished customers. The marketdominating 24-hour personal loans, recently embellished under the ongoing GCB personal loan promotion; our scheme loan product for institutions; our Facility Against Investment product targeted at people who want to borrow against their investments; our salary advance facility that allows salaried employees to anticipate their salaries in times of need, will soon be further enriched by our new product, Controller Loans,
which would allow non-GCB accountholders on the payroll of the Controller and AccountantGeneral`s Department to access personal loans.” The Head of Consumer Banking announced, “we shall hit the market with this product in the coming days. We shall soon introduce some offerings for our Micro and Small Enterprises, many of which are dotted along this stretch. Your Bank for life also has on offer a range of liability and asset products and services for our valued Corporate and SME customers. Call on us for all your banking needs.” He charged the staff of the
branch to be the very epitome of GCB Bank`s new service ethos and paradigm as captured in the Bank’s Core Values, encapsulated in the acronym, STARS. Let your tone of voice be FRESH. You have a very unique opportunity to demonstrate that talks about GCB`s poor service quality is a perception rather than reality. You can enhance or diminish the Brand depending on how you treat your customers. “Note also that there is a direct positive correlation between service quality and financial outcomes. If the quality of your service is poor, the figures shall expose you,” he said.
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UN Secretary-General appoints four new SDG advocates
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r António Guterres, the United Nations (UN) Secretary-General, has appointed four new Sustainable Development Goals (SDG) advocates ahead of the start of the 76th UN General Assembly. A statement issued by the UN said this wass part of immediate action to protect the most precious global assets and to deliver on common aspirations of humanity. The four new SDG advocates include Nobel Peace Laureate Kailash Satyarthi, STEM activist Valentina Muñoz Rabanal, Microsoft President Brad Smith and K-pop superstars BLACKPINK. “We are at a pivotal moment. The choices we make now could put us on a path towards breakdown and a future of perpetual crisis; or breakthrough to a greener and safer world,” the UN Secretary-General said. “The SDG Advocates use their considerable spheres of influence to reach new constituencies to act now and keep the promise of the Sustainable Development Goals for people and for the planet.” The statement said Nobel Laureate Kailash Satyarthi, the 2014 Peace Prize winner, would focus on protecting and promoting the rights of children
around the world. “Peace, justice and sustainability will only be achieved when every child is free, safe, healthy and educated. Every child matter,” Mr Satyarthi said. It said STEM activist Valentina Muñoz Rabanal, at 18 years old, has already helped write the first Artificial Intelligence policy in her home country, Chile. “As the youngest SDG Advocate, I want to be a voice for youth, especially for girls, to improve intergenerational dialogue in decision-making places, and to lay the groundwork to establish digital rights around the world,” Madam Rabanal said. The statement said Mr Brad Smith, as Microsoft’s President, plays a key role in spearheading the company’s work on critical
issues involving the intersection of technology and society, including cybersecurity, environmental sustainability, human rights, and philanthropy. It said in his role as SDG Advocate, Mr Smith would focus on bridging the digital skills gap and highlighting the importance of setting bold goals focused on environmental sustainability. “The scale and size of the challenges the world faces today, like poverty, inequality, and climate change, require all of us to join forces and develop new solutions, many of which can be enabled or accelerated through digital technology, Mr Smith said. “As we aspire to live our mission to create opportunity for everyone, everywhere, we look forward to partnering with
governments, industries, and civil society on the UN’s 17 SDGs by contributing our creativity, expertise, and know-how to unleash the power of digital technology”. The statement said as the most subscribed pop artist on YouTube with more than 65 million subscribers globally, BLACKPINK had engaged with the 26th UN Climate Change Conference of the Parties (COP26) to encourage young people to take climate action to protect the planet. It said Jisoo Kim ( JISOO), Jennie Kim ( JENNIE), Roseanne Park (ROSÉ) and Lalisa Manobal (LISA) would continue to exert their influence to bring positive changes to the world. “We truly believe in the importance of collective action. We will only be able to make a difference when we come together, for the good of everyone. Now is the time to act for a safer tomorrow and a better future,” they said. The statement said Co-chaired by President Nana Addo Dankwa Akufo-Addo of Ghana and Prime Minister Erna Solberg of Norway, the United Nations SecretaryGeneral’s SDG Advocates are prominent leaders in the world and are working to mobilize action to deliver the SDGs by 2030.
‘Embark on an expansionary drive into targeted markets in Africa’
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r John Kumah, Deputy Minister of Finance, has urged the newly reconstituted board of the Reinsurance Company Limited (Ghana Re) to embark on an expansionary drive into targeted markets in Africa to grow its premium income. He also asked members to enhance operational excellence and shareholder value by increasing return on equity from 14.8 per cent to 20 per cent by 2024. Dr Kumah said this when he inaugurated a seven-member reconstituted board of Ghana Re being chaired by Mr. George Otoo, a Chartered Insurance practitioner. Other members are Mr. George Y. Mensah, the Managing Director of Ghana Re, Mrs. Jennifer Owusu, a Lawyer, Mr. Franklin Hayford, Executive Director of Financial Services Business,
Mrs Lynda Odro, a chartered Insurance Practitioner, Mrs Stella Williams, Director for Monitoring and Evaluation at the Ministry of Finance and Dr Francis SaparaGrant, an Economist. Dr. Kumah implored the governing board to assist the management of Ghana Re to perform its functions creditably and lived up to its mandate of providing world-class reinsurance services to local and international companies. He urged the board to continue to provide appropriate strategic directions which would transform Ghana Re. “We are confident of the quality of your membership, the varying degree of expertise, leaves us in no doubt that the board will live up to expectation,” he said. He said with teamwork and commitment, “Mr. Chairman will ensure that the Board meets the expectations of the Government
and the general public.” He said it had been proven globally that a strong correlation exists between the level of economic development of a country and how developed the Insurance sector of the country is. “Whilst correlation does not necessarily imply causation, the benefits of a well-developed Insurance market to a country are numerous,” the Minister said. Dr Kumah said insurance provided financial support and reduced uncertainties in business and human life and it provided a cover against loss due to fire, marine, accidents or any sudden loss. He said Funds generated by collecting premiums could be invested in government securities and stock for the economic development of the country. Also, the Insurance sector provides capital into productive investments. Insurance mitigates
loss, promotes financial stability and trade and commerce activities resulting in economic growth and development. He said as an international reinsurer, competing with regional reinsurers who operate under charters such as Africa Re, Zep Re and WAICA Re, Ghana Re has continued to make significant strides in the industry. Mr. Otoo expressed gratitude to President Nana Akufo-Addo for demonstrating his confidence in them to serve another term as directors of Ghana Re. He said in the last four years (2017 to 2020), Ghana Re's premium income steadily grew from GH¢193 million to GH¢312 million. He said gross profit also grew from GH¢49 million in 2017 to GH¢456 million as at December 2020 (even in the midst of the COVID-19 pandemic). GNA
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FRIDAY SEPTEMBER 17, 2021
NHIA intensifies NHIS, Ghana card linkage
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he National Health Insurance Authority (NHIA) in collaboration with the National Identification Authority (NIA) is determined to make it possible for all residents in Ghana to use one card for healthcare access. The NHIA has therefore intensified its campaigns and encouraged holders of the NHIS and Ghana cards to merge the two in line with the “One nation, one card for healthcare service,” agenda. The NHIA urges those who are yet to do the merger to still use their NHIS cards for healthcare service, as it work towards replacing the NHIS cards with the Ghana card for accessing healthcare. The NHIA is mindful that those under 15 years are yet to receive a Ghana card for which reason there are exemptions to make sure that no vulnerable person is left behind, including pregnant women. Plans are far advanced to make it possible for all Ghana Card holders to do self-registration onto the NHIS database, instead
of visiting the district offices for the same service. As it continues to impact people’s health seeking behaviour, the NHIS is on course to deliver its ambitious target of providing access to quality and affordable health care services, to achieve Universal Health Coverage (UHC) in 2030. Speaking at the NHIA's midyear review meeting in Kumasi on Thursday, the Ashanti Regional
Director of the NHIA, Mr Kwadwo Tweneboa-Kodua said linking NHIS cards to the Ghana Card would save the authority the cost of printing its own biometric ID cards. "In line with the government's agenda on digitisation, the NHIA has deployed a number of digital solutions to bring about efficiency and effectiveness in its service delivery to all Ghanaians. "I would, therefore, challenge
management and staff of NHIA district offices to intensify education on the use of the mobile renewal service code of *929#, so that NHIS members can easily renew their membership at their convenience and comfort," Mr Tweneboa-Kodua said. He called on healthcare providers to be educated to renew their credentialing, using the online credentialing portal, while taking advantage of the "claimit" electronic platform to submit their claims for reimbursement. Mr Tweneboa-Kodua told the meeting that in spite of the biting effects of the COVID-19 pandemic, the Ashanti Region had made some strides in terms of the registration of NHIS members and the payment of claims to healthcare providers. He said by the close of June this year, the region had an active membership of 2,429,586, which represented about 73 per cent of its over three million population. "As of now, healthcare providers in the Ashanti Region have been paid their NHIS claims up to the end of March this year,” he added.
Standard Chartered initiates research coverage of crypto assets
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esponding to rapidly growing institutional interest in publiclytraded digital assets, Standard Chartered’s global research team has initiated coverage of crypto assets with in-depth reports on Bitcoin (BTC) and Ethereum (ETH). The crypto research team is led by Geoff Kendrick, who also heads emerging markets FX (West), and includes quantitative strategist Melissa Chan and Europe economist Christopher Graham. The team will provide insights to clients looking to invest in or trade crypto assets, keeping them up to date with the latest developments and pricing outlook. “The gap between traditional finance and the digital world is narrowing by the day,” said Eric Robertsen, Global Head of Research and Chief Strategist for Standard Chartered. “As our clients begin exploring cryptocurrencies, other digital assets and decentralised finance,
we aim to add value to their investment and risk-management
strategies and help them navigate and incorporate this new asset
class into their businesses.”
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African Business
FRIDAY SEPTEMBER 17, 2021
Kenya eyes full reopening in December
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enya's economy shrank 0.3% in 2020, according to the Bureau of Statistics. In addition to youth unemployment, Kenya's economy is being disrupted by restrictive measures due to the Covid19, With us from Bungoma Dr. Catherine Laura Mamuli, a lecturer from Kibakii,
University, Bungoma, Kenya. 83% of the jobs recorded were in the informal sector in this period of pandemic crisis. In Nairobi, our correspondent Ronald Agak, met the head of Jua Kali, this company employs youth from disadvantaged backgrounds.
Nigeria's food production threatened by insecurity
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enue State in Nigeria produces the staple foods consumed throughout the country. But in recent years, the region has been unable to meet rising demand. In addition, the closure of
the borders imposed by the government in order to fight smuggling and improve food selfsufficiency has caused prices to soar. To support these farmers, the Central Bank of Nigeria has released $1.92 billion.
Senegalese decry high commodity prices Congo prepares to assume OPEC's rotating presidency
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he import tax on refined sugar has been suspended until October 15 in Senegal. The objective of this measure is to defuse the economic crisis following the health crisis.
On the markets, the measure has caught traders unawares as they had already stocked up and are now forced to lower their prices.
ongo will takeover Organization of the Petroleum Exporting Countries (OPEC's) rotating presidency in 2022, succeeding neighbors Angola. The oil cartel's secretary-General Mohammed Barkindo was in the central African country this week where he met with the country's leaders. "I would like to reassure investors that we in OPEC will continue to work for the leadership of African countries in this organization," said Barkindo during a press conference. With 2.9 billion barrels of oil reserves and 10 trillion cubic feet of natural gas, the Congo is driving development across the entire energy value chain. Congo's state oil company SNPC has emphasized the role that natural
gas will play in alleviating poverty and positioning the country as a regional energy hub. In recent years, the country has seen a drop in oil revenues due, among other things, to production cuts imposed by OPEC amid concerns that producers Total and Eni are cheating the country. To broaden its tax base, the government has canceled tax and customs exemptions granted to oil companies for more than 30 years, a move welcomed by activists. Congo is the third-largest oil producer in sub-Saharan Africa after Nigeria and Angola, with an estimated production of 336,000 barrels of crude oil per day. Africanews.com
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FRIDAY SEPTEMBER 17, 2021
Climate change could force 216m people to migrate within their own countries by 2050
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he World Bank’s updated Groundswell report has revealed that climate change, an increasingly potent driver of migration, could force 216 million people across six world regions to move within their countries by 2050. Hotspots of internal climate migration could emerge as early as 2030 and continue to spread and intensify by 2050. The report also finds that immediate and concerted action to reduce global emissions, and support green, inclusive, and resilient development, could reduce the scale of climate migration by as much as 80 percent. Climate change is a powerful driver of internal migration because of its impacts on people’s livelihoods and loss of livability in highly exposed locations. By 2050, Sub-Saharan Africa could see as many as 86 million internal climate migrants; East Asia and the Pacific, 49 million; South Asia, 40 million; North Africa, 19 million; Latin America, 17 million;
Decisive collective action could reduce climate migration by as much as 80 percent
and Eastern Europe and Central Asia, 5 million. “The Groundswell report is a stark reminder of the human toll of climate change, particularly on the world’s poorest—those who are contributing the least to its causes. It also clearly lays out a path for countries to address some
of the key factors that are causing climate-driven migration,” said Juergen Voegele, Vice President of Sustainable Development, World Bank. “All these issues are fundamentally connected which is why our support to countries is positioned to deliver on climate and development objectives
together while building a more sustainable, safe and resilient future.” The updated report includes projections and analysis for three regions: East Asia and the Pacific, North Africa, and Eastern Europe and Central Asia. It builds on the novel and pioneering modeling approach of the previous World Bank Groundswell report from 2018, which covered Sub-Saharan Africa, South Asia, and Latin America. By deploying a scenario-based approach, the report explores potential future outcomes, which can help decision-makers plan ahead. The approach allows for the identification of internal climate in- and out- migration hotspots, namely the areas from which people are expected to move due to increasing water scarcity, declining crop productivity, and sea-level rise, and urban and rural areas with better conditions to build new livelihoods.
Nestlé unveils plans to support the transition to a regenerative food system
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estlé is laying out its plans to support and accelerate the transition to a regenerative food system – one that aims to protect and restore the environment, improve the livelihoods of farmers and enhance the well-being of farming communities. Nestlé will work with its food system partners, including the company's network of more than 500,000 farmers and 150,000 suppliers, to advance regenerative farming practices at the heart of the food system. As part of this journey, the company will also initiate new programs to help address the social and economic challenges of the transition. The announcement is being made in the lead up to the UN Food Systems Summit in New York, as part of Nestle's contribution to help achieve the Sustainable Development Goals (SDGs) by 2030. It also follows the recent report from the United Nations' Intergovernmental Panel on Climate Change that shows the climate crisis is intensifying. "We know that regenerative agriculture plays a critical role in improving soil health, restoring
water cycles and increasing biodiversity for the long term," said Paul Bulcke, Chairman of Nestlé. "These outcomes form the foundation of sustainable food production and, crucially, also contribute to achieving our ambitious climate targets." Nestlé is a signatory of the UN Business Ambition for 1.5°C pledge and was one of the first companies to share its detailed, time-bound climate plan in December 2020. The company is taking measures to halve its emissions by 2030 and achieve net zero by 2050. "With our long-standing partnerships with farming communities globally, we want to increase our support for farming practices that are good for the environment and good for people," said Mark Schneider, Nestlé CEO. "In the spirit of enabling a just transition it is vital that we support farmers around the world that take on the risks and costs associated with the move towards regenerative agriculture." Nestlé is investing CHF 1.2 billion over the next five years to spark regenerative agriculture
across the company's supply chain, using three primary levers to help farmers adopt regenerative practices: Apply state-of-the-art science and technology, provide technical assistance: Leveraging its vast network of R&D experts and agronomists, Nestlé is, for example, developing higheryielding coffee and cocoa varieties with lower environmental impact and assessing novel solutions to reduce emissions in the dairy supply chain. Nestlé will also offer agricultural training and help farmers exchange information and best practices that can be adapted locally. Offer investment support: The transition to regenerative
agriculture comes with initial risks and new costs. Nestlé will support farmers by co-investing with them, facilitating lending or helping them obtain loans for specific equipment. The company will also work with partners to fund pilot projects to test and learn how best to advance regenerative agriculture. Pay premiums for regenerative agriculture goods: Nestlé will offer premiums for many raw materials produced using regenerative agriculture practices and buy bigger quantities. This means rewarding farmers not only for the quantity and quality of ingredients, but also for the benefits they provide to the environment through soil protection, water management and carbon sequestration.
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Feature
FRIDAY SEPTEMBER 17, 2021
In tackling climate change, we should be going after the oil companies; not the politicians
By Eric Boakye Antwi
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n 1997, John Browne, then chief executive of the British oil company BP said: “The possibility cannot be discounted of a link between man-made carbon emissions and global warming; and that it is time for action.” At that time, global warming and climate change were not issues on everyone’s plate. Now, the effects of climate change have become more glaring and impossible to gloss over - they have engendered summits, demonstrations and a lot of activism. Indeed, there is an agreement of the world’s countries - the Paris Agreement of 2015 – aimed at cutting carbon emissions and gradually phasing in renewable energy for the world’s industries. It is sickening to note that since John Browne made that observation, the burning of fossil fuels has actually increased by a third; with people in developing economies like China and India the worst offenders. This is because increasing number of people in developing economies can now afford to drive their own cars, travel around by aeroplane, etc. And with the world’s population ballooning during that period, there are more and more people and companies requiring petrol, jet fuel, natural gas and thermal coal for their daily needs. The politicians have done their part – though former United States’ President Donald Trump did not want to carry his country's fair share of responsibility – in coming up with the Paris Climate Agreement of 2015.In fact, apart
from Trump – an avowed climate change denier - the world’s politicians cannot be cited for apathy and inaction. The United States of America is the world’s second biggest polluter; and that its leader does not see how climate change threatens the planet is regrettable. Al Gore, the former United States vice president, won the coveted Nobel Prize for his activism against climate change; and many politicians have won praise for their steadfast devotion to the cause. But the real problem does not lie with the politicians. It lies with the multinationals and conglomerates making huge profits out of fossil fuels. ExxonMobil, for example, plans to pump 25% more oil and gas in 2025 than in 2017. It makes perfect sense that John Browne – an executive in the oil industry – was among the first stakeholders to acknowledge the relationship between climate change and the burning of fossil fuels. For the world to wean itself of fossil fuels, the onus lies on the oil conglomerates to phase out fossil fuels and adopt renewable energy. But will they do it? It is now known that nearly twothirds of all heat-trapping carbon emissions that have caused rising temperatures and heat waves over the last century and half can be traced back to investor-owned conglomerates like ExxonMobil, Chevron, Royal Dutch Shell, and BP. These four companies are behind 10% of all greenhouse gas emissions since 1965. Aramco – the Saudi state-owned company – is the leading state-owned polluter; having produced a
whopping 4.38% of the global total of carbon emissions on its own. Michael Mann, one of the world’s leading climate scientists, sums up the gravity of the situation: “The great tragedy of the climate crisis is that seven and a half billion people must pay the price – in the form of a degraded planet – so that a couple of dozen polluting interests can continue to make record profits. It is a great moral failing of our political system that we have allowed this to happen.” According to research done by scientists at the Union of Concerned Scientists in the US, carbon dioxide and methane emissions from the 90 biggest
industrial carbon producers were responsible for almost half the rise in global temperature and close to a third of the sea level rise between 1880 and 2010. When confronted with this grim reality, some of these conglomerates have smugly argued that they were not directly responsible for how the oil, gas or coal they extracted were used by consumers. A study earlier this year found out that the five most prominent stock-market-listed oil and gas companies spend nearly $200m each year lobbying to delay, control or block policies to tackle climate change. The earth dies screaming, says the British reggae band UB40.I cannot agree more.
The writer is a climate change activist. Email: ericboakye500@aol.com Phone:Whatsapp: 0558719614
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Energy
FRIDAY SEPTEMBER 17, 2021
Let your performance tell the story of government’s commitment to capacity development in the industry – CEO PC
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he Chief Executive Officer of the Petroleum Commission, Mr. Egbert Faibille Jnr. has advised the 150 beneficiaries of the Accelerated Oil and Gas Capacity Building Programme (AOGC) to take their training serious and give off their best during the programme. “We want you to be a part of government’s success story in the oil and gas industry. Whether we tell a good or bad story depends on your performance,” he noted. He said this yesterday during the orientation of the beneficiaries towards their six- month hands-on training in mechanical, electrical, instrumentation and process engineering at the Takoradi Technical University (TTU). Mr. Faibille Jnr. further stated that the trainees must be careful not to break the rules stipulated in their bonds because the penalty would be for their guarantors to refund the money invested in the training. The Pro Vice Chancellor of TTU, Professor Victor Bondzie Micah welcomed the trainees to the campus and assured that
the faculty will be eager to assist any of them while they are in residence on campus. He encouraged them to be focused on the training and
advised them to adhere to the rules and regulations of the university during their stay on campus. Presentations were also made
by the Localisation, Engineering, Learning and Development, HSE and the AOGC Departments on their various roles in the oil and gas industry.
GOIL decorated with two awards
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OIL Company Limited has been honored with the ‘The Oil and Gas Pride of Ghana Awards 2020 while Mr Kwame Osei Prempeh was decorated with the ‘Outstanding Chief Executive Officer of the Year Award 2020. The awards were conferred by the Entrepreneurs’ Foundation
of Ghana, organizers of the ‘Made in Ghana Awards’ at its eight edition in Accra. The ‘Oil and Gas Pride Awards’ recognized GOIL’s contribution and excellence in the Oil and Gas sector, especially in supporting the economy in the last decade. Mr. Kwame Osei- Prempeh was also decorated with the
‘Outstanding Chief Executive Officer of The Year Award 2020’ for consolidating GOIL’s position as the leading Ghanaian-Owned Oil Marketing Company and, particularly, for stepping into the production of Bitumen expected to help reduce the cost road construction in the country.
Commenting on the awards, the Group CEO and MD, Kwame Osei Prempeh,E acknowledged the support from GOIL customers and the efforts of all staff in achieving the recognition. He promised to work harder with the team to make GOIL stronger.
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FRIDAY SEPTEMBER 17, 2021
Making a tangible impact through innovation in Africa
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eet Angela Lusigi, UNDP Resident Representative in Ghana who shares details of the exciting and innovative initiatives she gets to lead and contribute to. I knew from a young age that I wanted to do something that addressed the issues of poverty and inequality in the world, and I knew that leaders needed to be held accountable for them. I grew up in rural Kenya, watching the people around me struggling as hard as they could on an unlevel playing field, to provide for their families or lift themselves out of vulnerable situations. This is what I love about UNDP; my personal values resonate so much with the mission and mandate of the organization. And throughout the two decades of my career, I have been fortunate to work in roles and on projects that have enabled me to address the issue of poverty in all its dimensions. Career development, with the same mission My journey with UNDP started back in 2003 with a leadership training programme. Fastforward 17 years, with a five-year role at UNEP in between, and I now find myself working as The UNDP Resident Representative in Ghana. I have always maintained that, when it comes to a career path, only you know your skillset and what excites you, so it’s important to look for work opportunities that tick these
boxes. All of my moves within the UN, from IFAD and FAO in Rome in 2000 to UNDP in Nigeria as an Assistant Resident Representative, have all been about wanting to grow and looking for the next opportunity to do that. At the same time, I am always moving, towards a shared mandate — and this is made possible by the fact that all UN agencies share the same vision and values, collaborating to pursue a common mission, to accelerate sustainable development for the benefit of all. For 8 years as a Strategic Advisor for UNDP Africa in New York, I was fortunate to work with young researchers across Africa as one of the organisers of the annual African Economic Conference — a platform for researchers and decision-makers to debate emerging issues. Now, I get to work as part of the UN family in Ghana, across the full spectrum of the UN’s Sustainable Development Goals, helping to not only shine a light on the reality of poverty but able to do something about it. Building on the potential of young Africans to impact their communities I am passionate about youth empowerment, gender equality and leadership development. As a strong believer in the potential of African youth and women, one programme I am very happy to have coordinated in my previous role at UNDP Africa Headquarters
is the African Young Women Leaders Fellowship Programme. The idea behind the programme is to recruit outstanding talent from across the continent and then place them into organizations where they can gain experience managing and innovating various projects. We also provide them with training and networking opportunities. I am happy that new cohorts are being recruited yearly. Currently, in my new role as the UNDP Resident Representative in Ghana, I lead a dynamic team that is working with the UN system to support the Government to deliver on its development priorities. We are working with communities and all partners to support Ghana’s efforts to eradicate poverty for all, protect the planet for future generations, and foster peace towards inclusive, equitable and sustainable development.
One of our flagship initiatives involves connecting young people to opportunities and resources by fostering innovation through Youth Innovation for SDGs and Waste Recovery Innovation Challenges. So far, 20 young innovators are transforming their space and creating jobs through our seed funding of about 500,000 USD and support provided to deepening their capabilities and networks. The most important thing for me, in all the work I do within UNDP, is that it speaks to my passion for eradicating poverty. And I’ve had the opportunity to work towards that in numerous ways — whether it is mobilising resources, designing projects or leading teams to work alongside governments to define and implement strategies that leverage innovation and digital technologies. All of that dials back to our key purpose.
Angela Lusigi, UNDP Resident Representative in Ghana, (left) speaking to Millicent Torku, one of the 2500 farmers supported by UNDP and Adaptation Fund in Northern Ghana to be able to carry out dry seasons farming, through the provision of solar irrigation facilities. This is as part of a 4-year project to build community resilience to climate change impacts in Ghana.
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Feature
FRIDAY SEPTEMBER 17, 2021
Driving Business Performance – Sales & marketing imperative
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Insight and value-based selling – “Catch me if you can”
Oh no! We lost the account after chasing them for so long!” We couldn’t close the deal again! “Our Sales keeps dipping! And the huge footfalls in our stores don’t reflect in the figures at the end of the month”. All these and more sulking comments you hear from salespeople. Today’s customers have become very slippery. The business and service landscape has dramatically changed. The art of serving today’s sophisticated customers creates a dizzying effect on many businesses due to the presence of the many dimensions and complexities driven by emerging technology, constant innovation, and abundant competitor offerings. Today, businesses and customers alike, live in a new maze characterized by high customer volatility, an increased presence of knock-offs, spoilt for choice attitudes all yoked together in the cocoon of a buyers’ market. How do businesses of the present and the future deal with all these prevailing challenges at the same time in pursuing their sales? Fundamentally, Sales is the lifeline to every business everywhere on the planet. Without consistent performance and measurable results, the whole system will surely crumble and grind to a halt. Budget cuts, job losses, depreciated assets, shrinking profits, and ultimately bankruptcy. Trifling with the art of selling without adequate training and consistent coaching will not be a wise path to chart. The wind of change and evolution with the persona of today’s customers’ has warranted a swift response and shift at approaching the Sales & Marketing matrix in serving today’s customers. The days of “walk in the park sales” through the selling of the traditional F.A.B (features, benefits, and advantages) is insufficient for today’s Sales matrix. More so, bullying today’s customers with a seller’s apathy of “buy or leave!”, “This is what is available!” coupled with service apathy, weak frontlines, a disinterested and dispassionate sales force will only deepen the holes in your revenue vault, causing your revenue streams to stagnate irrespective of the wits of your board members or the size of your operating capital. Persistence in the past stereotypical approach of selling
will only result in businesses finding themselves in the land of revenue nightmares, wasted efforts, and an eventual collapse. Businesses and brands of the future irrespective of their size and industry are now faced with the challenge and opportunity of addressing the versatile, diverse, and dynamic needs of today’s customers in their bid to stay competitive, generate consistent revenue, and survive into the foreseeable future. More critically the business of Sales as usual through the trumpeting of product or service features coupled with some benefits and advantages plus baiting discount offerings have all been dethroned. This is because it is inorganic and unsustainable. Spending huge budgets on media buying without a congruent alignment and a thorough coherent Sales strategy driven by a high-performance Salesforce will only point one in the direction of wasted efforts and investments. What will be the essence of creating awareness and interest when you don’t have the matrix to ensure conversion? Harnessing and leveraging our consulting experience over the years, we gleaned these valuable insights about Sales at serving customers. These insights generated over time revealed the following glaring realities:
• Spending huge marketing budgets with no direct impact and correlation on sales • Untrained staff with high Sales target to achieve • High workforce turnover due to non-performance • Collapsing businesses due to the copy-cat approach at Sales & Marketing • Brand visibility and awareness that does not translate into product off-take or repeated service engagements. The conventional approach of Sales & Marketing in dealing with modern and sophisticated consumers and customers will not be a decision of value and will warrant critical interrogation for companies that want to offer value to their target market. Acker’s (1991) definition and framework of brand equity as “A set of assets or liabilities in the form of brand visibility, brand associations, and customer loyalty that add or subtract from the value of a current or potential product or service driven by the brand” sets the tone for a drastic change in approach and attitude towards the way we serve today’s customers. Without an in-depth understanding of today’s customers, Sales & Marketing will face a herculean task at conversion and ultimately winning the account. The new wave of addressing all the above challenges as adopted by most value-driven businesses across the
globe is through the framework of Insight and Value-based Selling. This is one of the new approaches adopted and being used to effectively and smartly serve today’s customers at Sales. This Strategic technique incorporates the careful and painstaking understanding of the psyche of today’s customers, the customers’ pain, the creation and customization of fit-for-purpose solutions, and the value that will accrue out of pursuing the relationship with the customer if one is to win them. Today’s customers may be slippery, sophisticated, but they can still be caught using the right tools, techniques, and approaches. Let’s get talking to discover how to win more customers and keep them. For more insights and techniques into this new selling framework, we specially invite to you reserve your seat (through the mandatory registration of GHc 499) at the 6th execution of our annual Premium Tuition-Free Sales & Marketing Performance training event dubbed “Driving Business Performance – Sales & Marketing Imperative”. This year’s summit is slated for 23rd September 2021. Contributors: Rev. John Thompson has spent his career over the years building high-performance culture in organizations he has consulted for. He has worked in Branding, Sales, Marketing, Strategy, Business Planning and strategic execution capacities at ‘Exposure’. As a certified Train the Trainer and Sales performance coach, he has added value to many teams and corporate professionals. His consulting clients include Local and Multinational companies in FMCG, Retail, Renewal energy, Pharmaceutical, Insurance, Real estate & Construction, consumer products, financial services, and Hospitality industries, amongst others. Lauretta Thompson (Mrs.) She is an associate consultant and in charge of Sales and Administration at ‘Exposure’. With a versatile skill-set, well vexed in customer service and service quality; she has worked her career building valuable business relationships, perfecting the art of cold calling, closing deals, and ensuring that clients’ expectations are met through service quality and professionalism. She has effectively managed different teams to pitch and win accounts of both local and multinational corporations.
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Banking
FRIDAY SEPTEMBER 17, 2021
Feasible recommendations to Ghanaian bond issuers on managing debt vulnerabilities in the covid-19 era
Kizito Seddoh, Manager, Debt Capital Markets, Investment Banking, Stanbic Bank
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lobally, the COVID-19 pandemic has presented a set of unique challenges to corporate and sovereign debt managers. The IMF reports that in many countries, the health crisis has occasioned a marked increase in the potential for debt distress across diverse multiple deficit spending units. This situation is being largely fueled by key factors including the potential increase in financing requirements to contain the direct and indirect shocks provoked by the pandemic, capital markets dislocations, decline in overall demand for goods and services in affected sectors, as well as capital flow reversals in emerging and developing economies. As debt vulnerabilities surged across governments, sectors, and businesses, debt managers were without advance notice summoned to promptly re-align and adjust their debt management
strategies to keep their businesses afloat in these unusual times. In Ghana, the momentum for local bond issuances in the local debt capital markets did not slow down entirely in 2020, per data from the Central Securities Depository (“CSD”). The total debt securities issued in the capital markets for full year 2020 was GHS207 billion, representing circa 43% increase from that of the prior year. This performance was mainly driven by a series of bond issuances from the Government, quasi-Government institutions and financial institutions. Key investors including banks, pension funds, asset managers, real money accounts and High Net Worth Individuals elected to pack more money into Government securities and issuances from Government-related institutions as their sentiments on the real economy began to lose confidence. Despite the global headwinds, the local debt capital markets remained poised and continues to demonstrate strong
potential for growth. However, key local investors have tightened their credit risk management frameworks in response to the challenging market conditions driven by the pandemic, particularly in relation to sectors that have been hardest hit including aviation, tourism, and hospitality. This truncated appetite is expected to soften as the economic recovery becomes stronger. In the broader financial services sector, we have observed that certain deficit spending units are mostly focused on engaging with commercial banks and non-banks to either raise additional funding or initiate restructure of their existing loan facilities. As evidenced by recent financial results publications, majority of banks considered new financing requests from borrowers cautiously as they kept a close eye on credit impairments and potentially looming nonperforming loans (NPLs). This restraint exercised by investors and commercial banks
alike in lending to the real sector is reflective of the perceived debt vulnerabilities in the real economy. Against this development, how can deficit spending units better manage actual and potential debt vulnerabilities to access new funding from the financial sector? For debt managers in this “business-as-unusual” scenario, navigating these turbulent times would require innovative and well thought-through strategies to ensure the survival and sustainability of business operations across sectors. In response to the question “What can business leaders do in a Covid-impacted environment to optimally manage debt vulnerabilities as they reposition their businesses for debt capital markets funding?”, I believe the following suggestions are worth considering and implementing from “C-Suite” and debt management perspectives, in addition to the nifty ideas being nursed in board rooms:
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21 CONTINUED FROM PAGE 20 Digitize your business To that extent , the first major step businesses can consider taking is to digitize their core and non-core operations. Across industries, the rate of digital adoption is growing particularly in relation to making and receiving payments, and processing customer requests. I believe there will be minimal push-back on the view that one positive outcome from the health crisis is the acceleration of digital and technological infrastructure to enhance efficiencies and spur economic growth in critical ecosystems across value chains. Business leaders are encouraged to consider the many advantages of improved technology and digitization to further enhance their business offerings, and in some cases reduce the cost of doing business. Initiate debt restructuring discussions early In addition, businesses that are
FRIDAY SEPTEMBER 17, 2021
already seeing challenges with their debt can proactively initiate debt restructuring discussions with their investors or lenders rather than wait for a default to crystallize or the situation to get worse. Being proactive in this way would contribute to giving lending institutions and investors a good sense of how businesses are managing their debts and how they are dealing with increasing debt vulnerabilities. For instance, if a business has a 3-year loan facility and is required to repay the full principal in three years and foresees challenging times ahead in terms of repayments, the business can proactively approach the investors or lenders for a restructure to allow the business to negotiate potentially more favourable terms so that it can honour its obligations timeously. More favourable terms may include tenor extension, price reduction, sculpted repayments, interest and /or principal deferment among others. As observed in the debt capital markets space, a few issuers both internationally and locally
proactively approached their bond investors for deferment of interest payments. Although this is tantamount to a technical bond default per market convention, if managed properly, this strategy can secure some concessions from investors and buy some breathing space for issuers in financial straits. This would enable the issuers to refocus and reposition their businesses for recovery and growth. Consider cost optimization strategies The health crisis has necessitated new investments in certain sectors and aspects of businesses to ensure continuity. These investments may have competed away funds that would have been otherwise spent differently. In these times, operational costs tend to climb for certain industries hence the need to explore more efficient and agile ways of doing business. In addition to keeping an eye on operational costs, it is also imperative to close out any revenue leakages as much as
possible. A perceived low-hanging fruit to contain cost pressures in difficult times for certain businesses is laying off workers. However, it is always possible to explore innovative ways of doing business and maintaining staff, including moving out of expensive offices to smaller working areas and initiating working-from-home plans, if possible. Businesses can assess their peculiar needs; examine how they are uniquely structured and orchestrate more nimble strategies to run their business more efficiently. Seek advice from credible financial institutions Even more fundamental, businesses should prioritise seeking professional advice and guidance from credible and qualified financial institutions to manage debt vulnerabilities, restructure and / or optimise their balance sheets, and explore viable financial alternatives to ride the storm in such turbulent times.
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BUSINESS24.COM.GH FRIDAY SEPTEMBER 17, 2021
NO. B24 / 250 | NEWS FOR BUSINESS LEADERS
MONDAY MAY 3, 2021
MONDAY SEPTEMBER 20, 2021
Economy rebounding faster from Covid-19 impact than envisioned – Akufo-Addo
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resident Nana Addo Dankwa Akufo-Addo says Ghana’s economy rebounding faster from the ravages of COVID-19 than envisioned, following a slow rate of growth in 2020. Speaking at the maiden edition of the Presidential Business Support at the Kempinski Hotel, President Akufo-Addo noted the support offered by the private sector, coupled with effective management of the COVID-19 crisis by Government, have seen the Ghanaian economy outperforming her peers, and rebounding faster than envisioned. “After recording negative growth in the second and third quarters of 2020, the economy recovered strongly in the fourth quarter of the year, and well into the first and second quarters of 2021, registering an impressive growth rate of 3.1% in the first quarter of this year, and 8.9% in the second quarter,” he said. The President continued, “The strong rebound in growth, low inflation rates, the stable currency, the strong reserve position, and FDI flows are clear
indicators of our collective desire to restore the Ghanaian economy onto a path of sustained stability and growth. We will continue to strengthen and deepen our engagement with the private sector towards realizing this goal.” Towards the growth of the Ghanaian economy, President Akufo-Addo told the gathering that, since 2017, Government has implemented policies and programmes that led to consistent economic growth averaging 7%, making Ghana one of the world’s fastest growing economies. Ghana, he stressed, has become the leading recipient of foreign direct investments (FDI) in West Africa, and one of the most attractive investment destinations on the continent of Africa. However, following the onset of COVID-19, which disrupted the global economic order, the President stated that the pandemic eroded the significant gains made by the Government in the management of the economy. “That notwithstanding, we were one of the few economies in the
world to have recorded positive growth, as the global economy went into recession. We have taken bold measures necessary to stem the risk of a recession, mitigate the negative economic impact of the pandemic, and significantly reduce its burden on our population,” he said. Explaining the rationale for the holding of the Summit, President Akufo-Addo indicated that these consultative engagements with the private sector have been convened as part of the Government’s Public Private Dialogue (PPD) framework, to help improve the business environment in the country. Government, he explained, fully recognizes that it is the resilience and ingenuity of the private sector that can guarantee economic growth, create substantial job opportunities for Ghanaian youth, and strengthen the country’s position as an economic powerhouse in West Africa. “Consequently, I have directed Ministers and relevant heads of state institutions to participate actively and fully in this important
Summit, and ensure that there is constructive dialogue between Government and the private sector towards realising our vision of a Ghana Beyond Aid,” the President said. Re-echoing Government’s commitment to the structural transformation of the Ghanaian economy, he indicated that, since 2017, Government has launched a comprehensive and ambitious programme for industrialization, based on the Ten Point Industrial Transformation Plan, the implementation of which is being coordinated by the Ministry of Trade and Industry. “This Plan, amongst others, includes the One District One Factory (1D1F) initiative, the new Strategic Anchor Industries programme, designed to diversify our economy beyond cocoa and gold, the development of industrial parks and special economic zones, the development of small and medium-scale enterprises (SMEs), and the establishment of Business Resource Centres (BRCs) and Technology Solution Centres (TSCs) in various parts of the country,” he said.
Africa Investment Forum to host third Market Days in Abidjan
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he Africa Investment Forum will hold its 2021 Market Days in Abidjan, Côte d’Ivoire, from the 1-3 of December 2021. The annual business gathering will showcase transformative investment opportunities across the African continent, many of which hold the potential to
drive Africa’s recovery from the Covid-19 pandemic. Invited participants to this third edition, including investors, project sponsors and decisionmakers, will be presented with a pipeline of deals that are ready for investment. Market Days 2021 will be held in a hybrid format. There will be
boardroom sessions, where deals are agreed among those physically present, while other attendees will participate virtually. Discussions at Market Days 2021 will focus on many different sectors, notably: agriculture and agro-processing; energy and climate; health; ICT and telecommunication; and
industrialization and trade. These are all sectors prioritized under the Africa Investment Forum’s Unified Response to Covid-19 initiative, launched in 2020. Boardroom sessions, where deals are finalized, will feature projects that: (1) are womenled; (2) are in Africa’s creative industries; and (3) promote financial, economic, and social sustainability. “We look forward to welcoming investors to join us in Abidjan – and virtually around the world – to take the next step in Africa’s growth,” said Dr. Akinwumi A. Adesina, President of the African Development Bank. “To achieve this growth, however, and to bounce back to pre-pandemic levels, Africa will need significant financial support. As an example. the whole of Sub-Saharan Africa will need $425 billion in additional gross financing by 2030,” he added.