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“60 years weaving our future together”
PIAC @ 10: A decade of championing transparency and accountability in the management and use of petroleum revenue
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Labour demands urgent review of Single Spine By Patrick Paintsil p_paintsil@hotmail.com
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he Trades Union Congress (TUC) has called for a review of the single spine salary structure, saying the scheme in its current form is unattractive as it has not lived up to expectation after almost 11 years of implementation. “Just as government committed GH¢22bn to reform the banking sector, some amount of money should be Cont’d on page 2
US$54m Tema City Gate Gas Project on course By Eugene Davis TUC Secretary-General Dr. Yaw Baah wants government to address issues of the single spine salary structure.
GNPC gears up for operator role in upstream sector By Benson Afful affulbenson@gmail.com
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he Ghana National Petroleum Corporation (GNPC) says with the current global energy transition it needs to get operator capabilities to deliver any future fields in Ghana, including the recently relinquished ExxonMobil field. Cont’d on page 3
ugendavis@gmail.com
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he Ghana National P e t r o l e u m Corporation (GNPC) is working to obtain requisite permits to ensure its Tema City Gate Gas Project takes off smoothly, a parliamentary report has revealed. According to the Mines and Energy Committee report on GNPC’s 2021 Work Programme, the corporation plans to undertake the project this year to enhance Cont’d on page 3
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Editorial
Wrong time for unbridled fuel price adjustments
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rganised labour has asked for the suspension of the automatic fuel adjustment policy as well as the cancellation of what it termed as nuisance taxes on fuel products to pull the brake on rising cost of living. The union cites the general hardship in the country as the basis for this call as the resurging pandemic continues to cause severe harm to people’s livelihoods and income. The Covid-19 pandemic has gutted economic growth and disrupted the nation’s macroeconomic framework, employment and livelihoods have come in the line of fire whilst growing uncertainties hover around efforts to drive
recovery. According to the Ghana Statistical Service, about 36 percent of firms closed down during the partial lockdown of Accra and Kumasi in April 2020, and about 8 percent remained closed as at in October. Also, sales of small businesses declined by GH¢115.2 million in June 2020, dropping to GH¢85.5 million by September whilst an estimated 41,952 workers lost their employment by June 2020. In such a scenario, the rampant increases in fuel products could be seen to be harsh and unwelcoming to the average Ghanaian considering the ripple effect on such actions on the economy, specifically inflation.
Aside the fuel price increments, new levies have been heaped on petroleum products all of which does not augur well for consumers of the commodity. Such development is quite insensitive especially as many Ghanaians and their businesses are still reeling from the impact of COVID-19. The unabated increments in fuel pricing could portray government as being oblivious of the sufferings of Ghanaians at a time that several people have lost their sources of income and it must heed the plea of workers to offer some respite in these trying moments.
Labour demands urgent review of Single Spine Continued from cover
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committed to addressing the issues of the single spine to bring salaries of public sector workers up to the right levels—and that will drive productivity,” TUC Secretary-General Dr. Yaw Baah said at a forum on the 2021 MidYear Budget Review in Accra. “Human beings respond to incentives; they are economic beings. We say there’s no money, but when it comes to reforming the banks and increasing productivity in the public sector,
there’s money.” According to the TUC boss, a review of the scheme that was conducted about two years ago failed to lead to a reform of the policy. “This time, we have called for the president to set up a commission to review [the policy] to address the concerns of workers, and we call on all unions to join the push,” he said. The single spine salary structure (SSSS) was introduced by the government in 2010 to, among others, address wage
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Dr. Yaw Baah leads the Trades Union Congress (TUC)
inequities in the public sector. The scheme sought to streamline wages in the public sector and ensure equal pay for equal work done. However, according to public sector unions, the scheme has not fulfilled its purpose partly due to government’s “poor wage attitude” towards its workers. The TUC also called on the government to suspend the automatic fuel adjustment policy and eliminate nuisance taxes on fuel products to help control the rising cost of living. Dr. Kwabena Nyarko Otoo, Director of the TUC’s Labour Research and Policy Institute, said the Covid-19 pandemic had caused job losses, reduced pay and a fall in real incomes, which have led to suffering. “Government must support citizens and reduce suffering; it must immediately raise the taxfree income threshold to give relief to workers and families.” According to the Ghana Statistical Service, about 36 percent of firms closed down during the partial lockdown of Accra and Kumasi in April 2020, and about 8 percent remained closed as at October. At the same time, an estimated 41,952 workers lost their employment by June 2020, with 11,986 workers still out of their jobs by the end of September.
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GNPC gears up for operator role in upstream sector Continued from cover In a memorandum submitted to Parliament by the Energy Minister, Dr. Mathew Opoku Prempeh, the corporation said it is keen to get onboard with Aker Energy as co-operator to ensure that the Pecan field is delivered on schedule to replace declining resources. “This carries significant strategic value for the Government of Ghana (GoG). By this transaction, GNPC is also acquiring the opportunity to develop the necessary capabilities to enable it manage the fields as a standalone operator in the shortest possible time, as international oil companies (IOCs) abandon investment in fossil fuel for renewable energy technologies,” the memorandum said. According to the memorandum,
Energy Minister Dr. Mathew Opoku Prempeh
the proposed structure is that Explorco, a subsidiary of GNPC, will own 40 percent of the shares in Aker Energy Ghana Limited, the current operator of the Pecan field which will become the Operator JV. It added that from the effective
date of the transaction until first oil, GNPC will sit on the board of the Operator JV. At the board level, GNPC will be involved in operational decisions. “It is worth noting that the capital allowance to be inherited by GNPC under the transaction
is approximately US$1.2bn. This would have remained with Aker/ AGM as a tax deductible amount and [been] repatriated abroad,” the memorandum said, adding that with the acquisition, the amount stays in Ghana. GNPC and Aker Energy as part of the negotiations of the transaction will also discuss and agree on the full details of a knowledge and skills transfer arrangement. Parliament last week granted a request by the government of Ghana for GNPC, through its subsidiary Explorco, to acquire a 37 percent equity stake in the Deep Water Tano/Cape Three Points (DWT/CTP) block operated by Aker Energy Ghana Limited and a 70 percent equity stake in the South Deep Water Tano (SDWT) block operated by AGM Petroleum Ghana Limited.
US$54m Tema City Gate Gas Project on course Continued from cover gas delivery. The project is designed to improve GNPC’s access to potential natural gas off-takers as part of measures to resolve the low utilisation rates of natural gas, with the associated risk of take-or-pay liabilities for GNPC. “In the year 2021, GNPC intends to obtain the requisite permits for Environmental and Social Impact Assessment (ESIA); conduct topographical, geotechnical and hydrological surveys, [and] frontend engineering design (FEED); [and] commence engineering procurement, construction, installation and commissioning (EPCIC) of the low and medium pressure and digitisation components,” the report said. The project is expected to create a market for low-pressure users of gas to propel the national industrialisation agenda in the Tema/Accra area. It will also create a market for high-pressure gas, such as Compressed Natural Gas (CNG), used for industries and transportation, and provide a hub for molecule allocation, monitoring, tracking and fiscal accounting across the gas value chain. The total cost of the project
is estimated at US$54m, and it is initially designed to process natural gas at the rate of 400m standard cubic feet per day (mmscf/d), scalable to 1,000 mmscf/d. The project is expected to be executed in two phases over a four-year period. The report also revealed that as part of its gas business project, GNPC has initiated a Liquefied Natural Gas (LNG) project under a
Build Own Operate and Transfer (BOOT) investment arrangement with Shell Gas & Power BV and Tema LNG Terminal Company (TLTC). Under the arrangement, Shell Ghana & Power BV will deliver LNG at a terminal to be regasified by TLTC. The TLTC will then deliver the regasified LNG to GNPC on behalf of Shell. GNPC will thereafter sell the
gas to gas users (power producers and industrial users) mainly in Tema and export some as well. The project will guarantee the long-term supply of natural gas for Ghana’s industrial drive, provide an alternative source of gas, reduce dependence on the West African Gas Pipeline (WAGP), and establish Ghana as a hub for gas supply in the sub-region.
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Ghana's new ambassador to China visits AGI
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he newly appointed Ghanaian ambassador to China, Dr. Winfred Nii Okai Hammond, has paid a courtesy visit to the Association of Ghana Industries (AGI) in Accra. The Chief Executive Officer of the AGI, Mr. Seth TwumAkwaboah, expressed his appreciation for the ambassador’s visit before he would leave for China, noting that it signified the value he had placed on the role of industry in the economy and China's relationship to industry. He said Ghana is moving towards industrialization and recent policies of the government supported the move. He said it is also important to note that according to statistics published by the United Nations Statistics Division, China accounted for 28.7 percent of global manufacturing output in 2019. "That puts that country ahead of the world," he said. The AGI CEO continued that the association’s members imported machineries and some amount of raw materials from China, "which is why we established our office in China to link members to industrial suppliers, but unfortunately, the COVID
Jojo Quayson: H. E. Dr. Winfred Nii Okai Hammond, Ghana Ambassador to China, third from right, Mr. Seth Twum-Akwaboah, CEO of AGI, second from right.
situation has stalled the activities a bit. Nevertheless, with your support, we hope to reactivate our activities and contacts we made in China." Mr. Twum-Akwaboah pointed out that the Chinese government's policy, One Belt and One Road, promised great opportunities for Africa because the real intention was to spread investment across the countries within the belt and road map. "It is important that your team must look at how Ghana can harness the industrial opportunities within the programme," he said. The ambassador thanked the AGI team for hosting him and indicated that he decided to meet AGI because industry played a
central role in China. He said the government's agenda for industrialization is key to economic transformation of Ghana. He said that is the focus objective of the mission in China. "Therefore, we will deepen the bilateral relations and align industry to our engagements," the envoy said. He said Ghana imported goods from China to the tune of US$1.9 billion in 2019, according to the United Nations. "My view in terms of strategy is that it should be possible for Ghana to also research into the raw material and product needs of China and export requirements, so Ghana can export to China to achieve a certain level of
appropriate balance of imports and exports." He expressed the hope that future collaborations between the embassy and the association would be strengthened and broadened. "I have heard about your presence and activities in China and I can assure you that my office will work with your association to advance industrialization of Ghana for the benefit of all." Other key people at the meeting included Mr. Stephen Djaba, a member of AGI International Relations Committee, Humphrey Jojo Quayson, International Relations Manager of AGI and Mr. Teddy Guh, another member of the AGI.
Akinwumi Adesina to speak at Salt Institute’s lecture on transformational leadership in Africa
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resident of the African Development Bank, Dr. Akinwumi Adesina, has been confirmed as the keynote speaker at the 3rd Annual Public Lecture on transformational leadership in Africa organised by the Intercessors for Africa (IFA) and Sundoulos Advanced Leadership Training (SALT)
Institute. The virtual public lecture to be held on Saturday, 28th August, 2021, will also see Ms. Allen Catherine Kagina, Executive Director, Uganda National Roads Authority and Dr. Nthabiseng Moleko, Development Economist of the Stellenbosch University, South Africa, as the other
speakers. Management and board of the organising institutions said in a statement that the lecture to be moderated by Dr. Mawuli Coffie, Director, Corporate & Business Strategy, SALT Institute, is under the theme: “Integrity, Leadership and Stewardship for National Transformation in Africa”.
The organisers explained the lecture is to be held virtually due to the COVID-19 situation, and will run between 14:00Hrs to 16:00Hrs GMT on Saturday, 28th August, 2021. “It is targeted at all segments of the African society including youth and women groups, civil society organisation, public and business communities, the church and christian-based organisations, academia, media, creative arts, policymakers, traditional leaders, security agencies, professional bodies, education and training institutions among others. The Intercessors for Africa (IFA) started as a prayer group in 1976 and has, over the years, expanded continentally with its headquarters in Nairobi, Kenya. SALT Institute, on the other hand, is an accredited research and training institute affiliated to GIMPA that is committed to raising and developing servant leaders for both private and public life in Africa, as well as globally.
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Finance Minister inaugurates boards of three institutions
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overnment is supporting the Ghana Revenue Authority in implementing a transformation agenda to block the huge leakages in key sectors of the economy, Mr. Ken Ofori-Atta, the Minister of Finance, has said. The agenda, the minister said, is not just about mobilising more revenue but equally about mobilising efficiency through technology and integrated data systems. Mr. Ofori-Atta said the establishment of the Revenue Assurance and Compliance Enforcement initiative, an inter-agency body set up to complement the efforts of the GRA, is aimed at identifying and eliminating revenue leakages in sectors of the economy. The minister said this on Tuesday during the inauguration of Boards of the Ghana Revenue Authority (GRA), Securities and Exchange Commission (SEC) and the Social Security and National Insurance Trust (SSNIT). He said the introduction of the Integrated Customs Management System, launched in 2020 to replace the existing systems had ensured that monthly revenue consistently exceeded Ghc1.0 billion, leading to an increase in consolidated revenue by 27.7 per cent from June 2020 to May 2021. “We have further launched a Centralised Digital Payment Platform dubbed “the Ghana .Gov Platform” to improve the
ease of paying taxes and provide real-time view of lodgements and government revenue for efficient planning and resource allocation,” he said. Over 5.8 million transactions, he said had so far been carried out on the Platform since its inception in June 2020, with a value of GH¢21.0 billion as at July 12, 2021. Mr. Ofori-Atta said notwithstanding the country’s best efforts, the average tax to Gross Domestic Product ratio of 12.8 per cent still lagged behind the 20 per cent of the peer middle income countries and 34 per cent in Advanced Economies. The GRA was tasked to collect total tax revenue of GH¢47.25 billion and was revised to GH¢42.77 billion for 2020 fiscal year, owing to shrinking economic activity as a result of the COVID-19 pandemic. However, total tax revenue of GH¢45.34 billion was collected, exceeding the budget by some GH¢2.57 billion. For 2021, GRA was tasked to collect a total revenue of GH¢57.06 billion, representing a 25.7 per cent growth over the GH¢45.4 billion collected for the 2020 fiscal year. The authority is further required to mobilize additional revenue of GH¢30 billion under the Ghc 100 billion three-year “Ghana CARES Obaatanpa” programme with targets of Ghc
5 billion for 2021, GH¢12.5 billion for 2022 and GH¢12.5 billion in 2023. With this plan, the Minister urged the Board of GRA to marshal all available resources to guide the management of the Authority to achieve the revenue targets. On the part of SEC, Mr. OforiAtta urged the Board to work with the management of the Commission to play leading roles in all financial sector engagements and work with the Ministry in achieving its success as quick as possible. He said government recognised the role that long term capital played in injecting life into the productive sectors of the country’s economy, stressing that the Development Bank Ghana would serve as a pillar to quickly recover from the effects of COVID-19 pandemic. For SSNIT, he said over Ghc 10 billion of all collections were spent paying pensions and other benefits, and charged the Board to commence stakeholder consultations towards new, innovative funding options for
the Scheme. He said Government from 2017 contributed Ghc 5.2 billion for workers towards their SSNIT pension compared to just about Ghc 2.9 billion between 2013 and 2016, and that the number of workers contributing to the SSNIT scheme increased by some 23 per cent from 2016 to 1.6 million as of 2020. Dr Anthony Oteng-Gyasi, the Chairperson of GRA Board thanked government for the confidence reposed in them and pledged to provide the needed policy direction to achieve the mandate of the Authority. Dr Yeboa Amoa, the Chairperson of SEC Board, promised to work diligently and lead the Commission to levels of success in fulfilling its responsibilities and as well work to complete and consolidate the tasked assigned to them. Ms Elizabeth Akua Ohene, the Chairperson of SSNIT Board said they would collaborate with management to make the best decision for the Trust to succeed. GNA
Buying a home? Down payment is optional
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cquiring a home is one of the long-term investments people make in life. Though one of the basic necessities of life, many people are unable to acquire a home either because of their income levels. Applying for a home loan, and paying back over time, has therefore become a preferred route for many to acquire their dream property. According to the Minister of Works and Housing, Hon. Francis AsensoBoakye, about 60% of Ghanaians will require some form of support to access housing. Executive Head, Home Loans Business at First National Bank, Kojo Addo-Kufuor said “Banks generally lend up to about 80% of the price of the property and require the borrower to
contribute the remaining 20%. However, raising the initial deposit can often be a challenge for prospective buyers.” “At First National Bank, however, we are able to offer eligible applicants 100% of the amount required to buy their
dream home. If you are a resident Ghanaian looking to buy your first home, but cannot raise the minimum deposit, you can apply for a 100% home loan from First National Bank to purchase that property. This loan covers the entire selling price of the
property.” Mr. Addo-Kufuor added, “the advantage of taking a 100% home loan is that it eliminates the months or years the applicant would otherwise require to save towards the deposit.” “Obviously, there are some terms and conditions to this exciting product, which can easily be explained and addressed upon enquiry” said Kojo Addo-Kufuor. “Take the challenge of owning a home in 2021 by visiting any First National Bank branch and speaking to any of our experienced Home Loans Advisors. Check your eligibility and range of homes within your budget and preference and you should be a homeowner by end of 2021.” Mr. Addo-Kufuor concluded.
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Buying a new or used car? Here are some things to consider Wendy Nelly Sarpong Head, Specialized Lending, VAF & Mortgages
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ehicle Asset Financing (VAF) or what is commonly referred to as auto/car loans could be a daunting and complex process without the proper understanding and the right advice to guide potential beneficiaries. In its basic definition, an auto/car loan is a loan given to a person for the purposes of acquiring a vehicle depending on the person’s preference or choice of vehicle. This is not to be confused with personal loans, which are unsecured loans. Although vehicle acquisition schemes have become very popular in Ghana over the last decade due to the cost of vehicles, exchange rate vulnerabilities, and recent flexibilities in lending parameters, there are many people who find themselves at sea when making decisions about auto loans. In this article, we will discuss some terms and loan structures available to clients who want a vehicle financing facility with a bank. The very first step before selecting a car model is to decide on the amount you can allocate for such an investment.
It is, however, not just a one-time investment. Along with paying a lump sum at the purchase, other expenses including its maintenance, fuel cost, insurance premiums, etc. also need to be factored in. It is therefore important to set an upper limit and decide on a monthly amount that you are willing to spend on the vehicle. After deciding on the budget, it is equally important to decide whether you want to buy a used vehicle or a new one. Generally, people opt for used cars due to the high cost of new vehicles. However, it is imperative to understand that although a second-hand car may fit in the budget, it can have higher maintenance cost than a new one. Therefore, one must analyze their budget and then plan an estimated cost of having a personal car. This decision must be taken with key considerations to your lifestyle, taste and other specifications such as safety, engine capacity, family size etc. It is also important to have an estimated idea about the resale value of the car. Due to a powerful engine, brand value, and superior fuel efficiency, some cars have higher resale value than others. Besides, maintenance of the car is one of the major
concerns of the buyers, and as such, they should purchase a model which has ample service centres in proximity along with the availability of spare parts. As financial planning is an essential part of the loan acquisition process, it is important to look out for financial institutions that give ease and comfort. Stanbic Bank, for instance, has alliances and association with vehicle dealerships across the country. The bank and the dealership have an understanding and a relationship which makes processing and acquisition of the loan and vehicle respectively a seamless process. There have been instances where clients have received discounts from dealers because they were acquiring the vehicle through the bank. Also, because the bank has partnerships with insurance companies through its
bancassurance portfolio, Stanbic Bank is able give clients a bouquet of premiums from different insurance companies for clients to choose from. The significant thing about this is that when people are taking premiums, they look at how much they are paying for rather than whether or not the insurance company can pay claims in case of an unfortunate incident. Through its bancassurance unit, the bank is able to work out these backend issues such as the right insurance company, the right premium and the kind of insurance for the benefit of the client. As noted in the beginning of this article, an auto loan can be a complex endeavour if one does not have a guiding hand. It is always important to talk to a bank for the necessary advice before taking any steps.
Absa Young Africa Works to create 50,000 dignified jobs for young Ghanaians
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bsa Bank Ghana and the Mastercard Foundation have announced a joint partnership initiative known as Absa Young Africa Works, a program aimed at enabling young people, particularly young women to access dignified work by investing in micro, small, and medium enterprises (MSMEs). The Absa Young Africa Works initiative seeks to promote the financial inclusion of currently marginalised or excluded micro, small or medium scale entrepreneurs in Ghana and enable financing to undeserved MSMEs who are otherwise are unable to access business financing due to a range of factors, including the prevailing macro-economic factors. The Absa Young Africa Works, will specifically target MSMEs with training, consultancy as well as unsecured loans of up to
GHs500,000. Launching the initiative, Abena Osei-Poku, Managing Director at Absa Bank Ghana, reiterated the Bank’s commitment to playing a shaping role in society through enterprise skills development initiatives designed to facilitate job creation and sustainable livelihoods for young people. She indicated that “formal and informal MSMEs are key actors in every economy and vital in achieving the sustainable development goals, especially SDG-8 which talks about decent work and economic growth”. “At Absa, we believe that MSMEs hold the key to an inclusive and sustainable development of our economic. This underpins our commitment to equip them, as well as our contribution towards ensuring a very equitable post covid-19 recovery in Ghana. Absa’s partnership with Mastercard
Foundation is therefore aimed at stimulating the growth of micro, small, and medium enterprises (MSMEs) to create access to 50,000 dignified and fulfilling jobs for young people and women in Ghana” noted Mrs Osei-Poku. As part of the partnership, Absa Bank Ghana will also provide entrepreneurial and business sector-specific training. It will also facilitate lending at favourable interest rates to agribusinesses and women-led enterprises to enable them to scale and create access to dignified jobs for thousands of young people in Ghana. Speaking at the launch Nathalie Akon Gabala, Regional Director at Mastercard Foundation noted that Ghana remains one of the most enterprising countries in Africa with young people and women leading startups and small businesses. “These MSMEs for a decade have been major players to the
economy contributing 70% GDP to Ghana’s economy with the sector being the leading provider of employment in the country,” said Ms Gabala. “This partnership will serve as a catalyst for the transformation of MSMEs in Ghana by stimulating growth in the MSME industry, unlock job opportunities for young Ghanaians, strengthen MSMEs financial situation and enable Absa Bank to provide unsecured lending as well as providing technical and financial support to scale up promising fintech start-ups,” Nathalie Akon Gabala added. The Absa Young Africa Works initiative which is a 5-year partnership, is part of Mastercard Foundation’s Young Africa Works strategy in Ghana; an ambitious 10-year program to enable 3 million young people, 70% women, to access dignified and fulfilling work.
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Technical education is key to Ghana’s progress – Joe Ghartey
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ember of parliament for ESSlKADO-KETAN Constituency, Mr. Joe Ghartey, has said great nations in the world have progressed mainly because of their technical sector. Mr. Ghartey who attended the official launch of the SRC week celebration of Cape Coast Technical University as guest of honour said it is a matter of considerable regret that Ghana, which was richer than South Korea in 1957, has today fallen far behind South Korea. He cited, for instance, countries like South Korea and Germany whose progress to a large extent was because of the attention they paid to technology and technical sector. He asked the students to recognise the remarkable progress the government had made in this area. Key among them, he said, is the conversion of polytechnics into technical universities. He urged them to work hard
and to remember that challenges will come but they are there to be conquered. He reminded them of the words of Nelson Mandela in his book 'Long walk to freedom' where he stated that “I have climbed many hills & every hill I climbed
I realised there were more hills to be climbed”. He ended with a quotation from 'Glanville Williams: Learning the Law' which he said has stuck with him since he read it as a law student more than 30 years ago. “If the young people go about
their chosen profession diligently, one day they will wake up and be amongst the great people of their time." He therefore admonished them to work hard to be counted amongst the great people of their generation.
Farouk Aliu Mahama chairs Ghana Integrated Iron and Steel Corporation
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resident Nana Addo Dankwa Akufo-Addo has named the Member of Parliament for Yendi, Farouk Aliu Mahama, as the next Board Chairman of the Ghana Integrated Iron and Steel Corporation.
According to the President, Mr Mahama will replace the late Prince Imoro Andani who died this year after a short illness. Profile
Born on April 27, 1981, Alhaji Umar Farouk Aliu Mahama is the son of former Vice President Alhaji Aliu Mahama and Former Second Lady Hajia Ramatu Mahama. His father was Ghana’s first
Muslim Vice-President and his is paternal grandfather, Zongo Naa Mahama, was the Zongo Chief of Yendi, the traditional capital of Dagon. Farouk Aliu Mahama’s maternal grandfather, Alhaji Imoro Egala, was Ghana’s Foreign Affairs Minister in the First Republic (1960-1961) and later Trade and Industries Minister. Education He began his basic education at Sakasaka Experimental Presby, Tamale and was later enrolled at the Achimota School in Accra. He proceeded to Prempeh College in Kumasi for his secondary education and later to Kwame Nkrumah University of Science and Technology. He earned a Bachelor of Science degree in Marketing at the Ghana Institute of Management and Public Administration (GIMPA) and now holds a Master’s degree in Supply Chain Management from the Coventry University in England.
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Bibiani Gold Mine sold for $90million
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ustralian gold miner Resolute Mining has announced that it has agreed to sell the Bibiani Gold Mine in Ghana to Canadian gold developer Asante Gold Corporation for $90million. Resolute said in a statement that both parties are committed to ensuring an orderly transition of ownership at Bibiani. The deal will be financed as follows: US$30 million deposit (already received by Resolute to be applied upon completion); US$30 million on or before 6 months from completion; and US$30 million on or before 12 months from completion. "Asante is dedicated to injecting the necessary capital to achieve the rapid restart of Bibiani, which is not expected to result in any immediate changes to employment or contract relationships," Resolute said. "Asante has strong ties to Ghana, with Ghanaian citizens holding a significant shareholding, and board and executive roles. Asante has announced plans to co-list its shares on the Ghana Stock Exchange". The agreement has been approved by Ghana's Ministry of
Lands and Natural Resources and is expected to be completed in the next 10 days. The Minister for Lands and Natural Resources, Mr Samuel A. Jinapor said: “I commend the recent approach of Resolute and
Asante in their dealings with the Ministry for Lands and Natural Resources and am pleased to support the transition of ownership of Bibiani to Asante.” Bibiani is owned by Mensin Gold Bibiani Limited, a whollyowned subsidiary of Resolute.
Resolute currently owns 100% of Mensin Gold Bibiani Limited through its wholly-owned subsidiary, Resolute (Bibiani) Pty Ltd. The Government of Ghana is entitled to a 10% free carried interest in Mensin Gold Bibiani Limited.
40 percent of start-up businesses in Ghana do not make profit - CEO
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bout 40 percent of startup businesses in Ghana do not make profit at all, Mr. Sherif Ghali, Chief Executive Officer of the Ghana Chamber of Young Entrepreneurs, has noted. He said majority of them also lack access to finance, market, infrastructural and innovation support, as well as the skills development required to sustain these entities. Mr. Ghali, giving a scenario
of Ghana’s start-up ecosystem, at a validation workshop at Akyawkrom in the Ejisu Municipality of the Ashanti Region, advocated proactive measures to improve on the situation. The time is ripe to create suitable interventions to address the structural needs of startups and the start-up ecosystem, he advocated, adding that this would provide an enabling
business environment for entrepreneurship. The workshop wass to allow stakeholders to discuss the Ghana Start-up Bill, which when passed into law, would provide legal backing for the introduction and promotion of start-ups for jobs and wealth. Its ultimate aim is to boost entrepreneurship and job creation in the country. The programme was organised under the auspices of the Ghana Chamber of Young Entrepreneurs, Ghana Start-up Network, and the SNV Netherlands Development Organization, Ghana. It formed part of the ‘GrEEn’ Project, which has the objective of creating greater economic and employment opportunities for the youth, women and returning migrants by promoting sustainable green businesses. ‘GrEEn’ is being implemented under the European Union Emergency Trust Fund (EUTF) for Africa. Mr. Ghali, who is a member of the Technical Working Committee on the Ghana Startup Bill, said when passed into
law, the initiative would help to advance creativity, innovation and the use of new technologies in achieving a strong added value and competitiveness within the start-up ecosystem. Therefore, stakeholders ought to take keen interest in the ongoing regional validation workshops to help shape the Bill for the better before being passed into law. Mr. Frederick Acquah, Business Development Advisor, SNV ‘GrEEn’ Project, said the project was happy to be associated with the ongoing stakeholders’ discussion on the Bill. This, he said, was in tune with efforts to empower household businesses to inject creativity and professionalism into their operations to alleviate poverty and also create wealth. He was optimistic that the Bill when passed into law would assist start-up entities to grow to appreciable level in order to generate innovative business ideas to create employment for the people. GNA
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UTAG refuse to honour NLC’s invitation until court process ends
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he University Teachers Association of Ghana (UTAG) says it will not be able to honour the National Labour Commission’s (NLC) invitation due to the pending court process. The association referred to a letter of response dated August 6, 2021 from the NLC on UTAG’s decision to withdraw teaching and related activities. In the response letter dated August 9, 2021, and addressed to the Executive Secretary of the National Labour Commission, it explained that following the serving of an order of interlocutory injunction on UTAG, the association has asked its lawyers to go to court to set it aside. “Therefore, we would not be able to honour your invitation as we would want the court process to end before any meeting,” it said. The letter was signed by Prof. Charles Marfo, the National President and Dr Eric K. K. Abavare, the National Secretary, and copied to the Minister of Education, as well as the Minister of Employment and Labour
Relations. Members of UTAG has for over a week now, withdrawn their services indefinitely over demands on their conditions of
service. This has led to the postponement of examinations in public universities, but the NLC on Friday, August 6, 2021, secured
an interlocutory court injunction to stop UTAG from continuing this action, and to rather bring them to the table of negotiations.
“60 years weaving our future together”
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n the occasion of the 60th Anniversary of diplomatic relations between Mexico and Ghana, the Embassy of Mexico embarked on a creative and significant journey to find the best way to express, with the aid of an image, the strength that unifies both countries.
Mexico and Ghana stand proudly on the global stage. We both share unique heritage, deep roots and values. It is through our people that we become closer despite of the geographical distance. In this regard, we found in our people through our artistic expressions, the chances of a life
time to join two astonishing icons: Mexican Huichol and Ghanaian Kente. The Huichol people are one of the 56 indigenous ethnic groups in Mexico. They are located in the states of Jalisco, Durango, Zacatecas and Nayarit, where Wixáritari, the native language is
preserved. The Huichol people are globally recognized for their colorful folk art using beads and strings. Features symbols, animals and nature are of great significance to the Wixáritari people. Every piece is uniquely handmade. On the other hand, as we all know, Ghanaian kente is seen as a colourful and delicate treasure, which expresses the vibrant unique history of its people. The fact that each pattern has a name makes it even more distinct. You can easily feel the exceptional spirit of Ghana through each and every single weave and pattern of kente. Our textiles, our art, our people, our countries weaving stronger ties every day, set a fertile ground to reflect upon our first 60 years. It is this strength and incommensurable energy that motivates us to move forward towards building a strategic relation based on prosperity and mutual benefits for the well-being of our wonderful people.
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Downgrading Africa’s development By Hippolyte Fofack
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uring the COVID-19 pandemic, more than 60% of African sovereigns have suffered creditrating downgrades that risk exacerbating the immediate crisis. Ratings agencies should instead pursue a more balanced approach that accounts for increases in credit risk without undermining developing countries’ economic prospects. In 2020, the COVID-19 pandemic triggered Africa’s first recession in a quarter-century and, with it, an avalanche of sovereign creditrating downgrades across the region. Eighteen of the 32 African countries rated by at least one of the “big three” agencies – Fitch Ratings, Moody’s, and S&P Global Ratings – suffered downgrades that risk exacerbating the immediate crisis. Moreover, the ratings agencies’ actions could undermine the longerterm structural transformations needed to reduce these economies’ unhealthy commodity dependence. Fifty-six percent of rated African countries were downgraded last year – significantly above the global average of 31.8% and the averages in other regions (45% in the Americas, 28% in Asia, and 9% in Europe). The share of affected African sovereigns is even higher (62.5%) if we include the two (Kenya and Mauritius) downgraded in the first half of 2021. The glut of downgrades has been accompanied by a torrent of negative reviews of African countries’ ratings outlooks. Between them, the three agencies revised downward the outlook of 17 sovereigns – four from positive to stable and 13 from stable to negative. The significance of these largescale downgrades extends far beyond their number. Botswana, Mauritius, Morocco, and South Africa had long enjoyed investment-grade status. But last year’s downgrades of Morocco and South Africa to “junk” status mean that Africa will emerge from the pandemic with more than 93% of its sovereigns rated below investment grade, which could trigger disproportionately negative “cliff effects.” The downgrades of African sovereigns are underpinned by several factors, but two are especially relevant to the region. The first is the ratings agencies’ institutional instinct
to preserve their reputational capital. The second concerns socalled “perception premiums,” or the overinflated risks that the agencies perennially assign to African sovereign and corporate borrowers, irrespective of improving economic fundamentals. By raising African countries’ risk premiums, the ratings cuts could hamper their access to the development finance that would support the growth and structural transformation of their economies. Higher premiums will increase borrowing costs and reduce demand for African public assets. Prevailing regulations either prohibit many foreign investors from holding subinvestment-grade securities, or generally deter such investments by requiring that extra capital be held against them. The spillover effects of the downgrades were felt strongly across Africa when the sharp tightening of financial conditions early in the COVID-19 crisis led to sudden stops and reversals in capital flows. Capital outflows from the region reached new highs, with South Africa particularly affected. The country’s net nonresident portfolio outflows from bonds and equities exceeded $9.7 billion in 2020, or 3.26% of GDP, and its ten-year bond yield rose by more than 100 basis points from 8.24% to 9.27% between January and September 2020. Likewise, African sovereign Eurobond spreads increased dramatically in the wake of the downgrades. They rose sharply relative to the full JP Morgan EMBI averages, setting a record in June after rising by over 1,000 basis points above US Treasuries and more than 400 basis points above the all-grade EMBI composite index spread.
The fact that most African sovereign issuers were already rated below investment grade before the pandemic magnified the downgrades’ short-term effect on their international borrowing costs. Researchby Moody’s has shown that whereas bond yields are relatively insensitive to downgrades when a borrower’s rating remains above investment grade, they become very responsive even to small downgrades when the rating is in junk territory. This may help to explain the large spreads across Africa last year, and it validates policymakers’ concerns about the cliff effects associated with the downgrades of Morocco and South Africa. Besides their short-term economic effects, procyclical ratings downgrades can have long-lasting negative spillovers because they are not automatically reversed after a crisis has passed. As the pandemic gathered pace in April 2020, for example, Fitch announced a dramatic multi-notch downgrade of Gabon’s sovereign rating to CCC from B, largely on the grounds that falling oil prices would widen the country’s twin deficits and undermine the government’s capacity to honor its commitments to external creditors. Although oil prices have since recovered to above pre-crisis levels, an upgrade of Gabon’s credit rating seems far from imminent. Empirical evidence shows that it takes an average of seven years for a downgraded developing country to regain its previous rating. Early in the COVID-19 crisis, therefore, the European Securities and Markets Authority cautioned ratings agencies against deepening the downturn through quick-fire downgrades. The
European Systemic Risk Board echoed these concerns, stressing the need for greater transparency and the timely incorporation in credit-rating models of changing economic fundamentals. With a view to reducing volatility, these regulators also advocated a through-the-cycle approach to credit-risk assessment. Their concerns reflect the potential risks that procyclical downgrades pose to growth and financial stability. These dangers are even more acute in Africa, where private bondholders and commercial banks have become major providers of long-term development financing. Affordable access to such financing will boost Africa’s returns on investment and accelerate the diversification of its sources of growth and trade. This, in turn, will increase African countries’ fiscal space and set them on a path toward long-term fiscal and debt sustainability, both of which are positive for credit ratings. Ratings agencies should therefore pursue a more balanced approach that accounts for increases in credit risk – and thus preserves their reputational capital – without undermining developing countries’ economic recovery or long-term development goals. Striking that balance will enable African economies to escape the destructive twin traps of highcost development financing and commodity dependency, and accelerate global income convergence. Hippolyte Fofack is Chief Economist and Director of Research and International Cooperation at the African Export-Import Bank (Afreximbank).
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Africa’s first innovative re-structure of post-graduate diplomas
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n a first for Africa, the University of Stellenbosch Business School (USB) is offering a dynamic range of Post Graduate Diplomas (PGDips) with far greater flexibility, a strong focus on leadership and futurereadiness and easier access to the global movement of life-long learning. With the pandemic bringing into focus the need for radical change in how we prepare for the unknown and create a more positive future, USB’s new PGDips will equip leaders to be values- driven, future-thinking, and innovative in their approach to adapt and pivot during everchanging circumstances. Prof Martin Butler, USB’s Head of Teaching and Learning, said that in addition to the pandemic necessitating skills that reflect the new challenges faced in the business sector, they listened to students’ feedback and shaped the PGDips according to their needs. “As a business school we regularly revised our programmes over the years to keep pace with the ever-changing demands posed to leaders. However, this revolutionary
restructure will bring forth a deep-seated attitudinal change amongst leaders and how they equip themselves in manifesting change, managing disruption, and building a more equitable and sustainable future. In addition, companies are expecting their employees to display critical thinking capabilities whilst students need far greater flexibility in how and when they study – all reflective in the redesign.” The PGDips in Development Finance, Futures Studies, Project Management and Business Management and Administration have been re-designed to be completed in one or two years, and each comprise eight bespoke modules that provide students with a universal set of skills and knowledge, equipping them for future readiness. The foundation modules will focus on responsible leadership and understanding the local and global ecosystems in which we operate. Thereafter, students will have a choice between other foundation modules such as thinking frameworks for better decision making, managing risk and uncertainty,
and organisational behaviour. Post reaching the halfway-mark of the programme, students then continue with their area of specialisation by taking programme-specific modules for the remainder of their academic journey. “Students will be attending the foundation modules together, creating incredible diversity and rich discussions across the various PGDip programmes,” says Butler. “The networking opportunities are invaluable in building diverse and inclusive networks for years to come, broadening perspectives, and providing insight and understanding of a variety of business sectors, cultural affiliation and the unique challenges faced across industries.” Students can choose to access classes either on-campus, online or a blend of both modes, with greater flexibility whilst working, or living in other provinces or abroad. “Our online learning platform is cutting-edge. Where traditional learning management systems are mainly technology and delivery focused, the new platform is designed to
provide the optimal learning experience. It incorporates best practice learning design, with interactive and engaging learning capabilities, delivering the same transformational impact as faceto-face courses,” comments Butler. USB will continue its innovation of the programmes and are currently exploring ways in which components of the programme can be made available as compact, standalone learning opportunities. In broadening the competencies of students, the redesign also gives recognition for credits earned on some of the foundation phase modules when a second PGDip is completed within five years, providing the invaluable ability to complete two different programme-specific modules such as Future Studies and Project Management. Join us for a virtual information session on Thursday 26th of August 2021, by registering with: Dr Marietjie van der Merwe Ghana In-Country Representative marie@globalnatives.com WhatsApp:+230 5 701 1362
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Perfect skin to billionaireship
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kin irritations, blemishes, discolorations and allergies are a huge source of discomfort for every woman. This situation can even cause a woman to lose a great deal of selfconfidence. Skin conditions such the above and more are mostly caused by the use of various kinds of skincare products, which have harsh chemical contents that the skin reacts badly to. Some are also caused by soaps, oils, and even excessive stress. The skin is a very sensitive part of the human body and hence it must be the first point of caution for body therapies. One must ensure the skin is well taken care of, as it is the outer protective covering of the body. This article discusses the best ways to take care of your skin and body, and what best products to use in this therapy to achieve a good looking, flawless and healthy skin. There are certain basic therapies to involve in your daily skin care routine to ensure that you develop a great flawless and healthy skin, however in addition to this daily routine, you need a supplementary product to include in order to achieve the desired result. The usual recommended daily routine check for skin care is to wash the skin regularly, moisturize consistently, drink
a lot of water to hydrate the skin and body, exfoliate when necessary, cleanse the skin pores and use a good skin care product. Now the question is, what is the good skin care product to use? The fact that generally, skin complexions are similar does not mean all skin types are the same. Everybody has a unique skin component and thus will react to a product differently. What works for your skin, might not work for others, and vice versa. Therefore, it is recommended that you use a product that works for you and maintain that product for a better skin. Now moving on to the skin product to use after going through the regular skincare routine. Aside moisturizing the skin, many look out for skin lotions and body creams that can tone out their skin, shield the skin and protect it from direct rays of the sun, clear skin blemishes, stretch marks, acne, blackheads, pimples, etc. and in an attempt to find that product that works, they end up applying products that contain such harsh chemicals that get their skin either bleached or cause many skin diseases. In this article I will be presenting to you an organic based body lotion that prevents all forms of skin bleaching effects, corrects skin irritations, helps to improve the skin cells,
keeps your natural skin type to glow, protects the skin from the harsh rays of the sun, hence acts as a sun screen, a product that restores the skin back to normal after a skin has encountered fresh wounds, burns, rashes, irritations, etc. This body lotion contains sheep placenta extract, SOD Milk, vitamin E, very mild fragrance, moisturizing content and so many highly effective organic based ingredients which help improve the quality of the skin. The Longrich SOD Sheep Placenta Body Cream is the product in discussion. This product helps to reduce facial wrinkles, helps to clear scars and marks on the skin, spots, and also keeps the skin tissues strong and elastic. Longrich has gone through a thorough research into the necessities of the skin and have thus taken time to put the materials and ingredients together to come out with such a perfect product which serves the skin with all it needs for a flawless result. In addition to this, Longrich gives all users of this amazing product, the opportunity to make fortunes of wealth to support their financial needs. This is how it works; the more you use the cream or any other products, points which are affiliated in attachment to the products accumulates in your
personal portfolio/system with the company, and the company gives you a cash commission on the more points you gather from using the products. Many have been able to do this for some time and have made millions of Ghana cedis and Dollars just by using the products and also sharing their testimonies to others. So Longrich says, use their organic skincare and healthcare products, and make money whiles you are at it. An example of such people who have benefitted from this system are Titi Ejimangwa of Nigeria, Vivian Mokome of South Africa, Jane Taba of Cameroun, Sheila Okpershika Odonkor of Ghana, Sylvia Lawson also of Ghana and many more upcoming. Use a good skincare cream, protect your skin from bleach, skin irritations, marks, spots and blemishes, keep your skin glowy, strong and flawless, and make money as you achieve this super flawless look. This is what Longrich SOD Sheep Placenta Body Cream offers to you. Stay healthy, stay beautiful and confident in your natural skin, stay flawless, with Longrich. Author; Patience Afi Offei Organic Health Consultant, Longrich Products Brand Ambassador Accra Ghana.
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High duty on hybrid vehicles blamed on CET
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Supervisor at the Vehicle Valuation Unit of the Customs Technical Services Bureau, Mr. Justice Njornan Magah Yadjayime has attributed the seemingly high import duties for hybrid vehicles in the country to the ECOWAS Common External Tariff (CET) which was adopted by member states in 2015. Responding to concerns by a section of importers that the duties on hybrid vehicles are expensive compared to normal vehicles, despite the environmental benefits, he said that could be attributed to the ECOWAS Common External Tariff which applies to vehicles and goods from non-member states. Speaking on Eye on Port’s live interactive programme on the importation and clearance of vehicles at the Ports of Ghana, he said the duty for hybrid vehicles is currently pegged at 20percent of CET. “ECOWAS established a Common External Tariffs of 20% for all vehicles like saloon cars, SUVs and wagons. So you realize that these are the categories the hybrid cars fall within,” he said. However, he said ECOWAS in 2015 when the CET was to be implemented put in a
flexibility measure which is called supplementary tariffs measures for all member countries to avoid the harsh effect of the increment of taxes on the citizenry. “ECOWAS then decided that for every member you have the opportunity to adjust gradually the 3% of your tariffs lines. So the government of Ghana took that opportunity and applied to ECOWAS,” he said. The Supervisor at the Vehicle Valuation Unit continued that
government decided to leave out some of the items which were not an issue “because in 2015 we didn’t have an issue with hybrid vehicles coming into the country and people didn’t like them and didn’t know what they were meant for.” “So that is why it stayed at 20percent and it is not as if anyone doesn’t see the benefit of hybrid vehicles. Now that there is that opportunity for people to use and know how good it is,
there have been discussions on it as to how to go about it. I’m sure with time it will be resolved,” he stated. He encouraged Ghanaians to consider hybrid vehicles because of its positive impact to the environment. Mr. Yadjayime entreated clearing agents who disagree with the value quoted during the valuation of their imported vehicles to reject and appeal the value immediately.
Transport minister inspects ongoing projects at Takoradi Port
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he Minister of Transport, Kwaku Ofori Asiamah together with his two deputies, Hassan Tampuli and Frederick Adom have paid a
two-day working visit to the Port of Takoradi, Axim and Dixcove fishing landing sites. The purpose of the visit was to inspect expansion works at
the Port of Takoradi and also introduce his deputies to the Management of the Port. He inspected the liquid bulk terminal which was commissioned
last year by the Vice President, Dr. Mahamudu Mawumia, the dry bulk jetty as well as the ongoing construction of the Atlantic Container Terminal. He expressed optimism that the Port of Takoradi will soon become the port of choice in the west African subregion. The Minister revealed that due to the change in engineering, the first vessel would call the Terminal by the end of December. Earlier, the Minister and his entourage visited the Axim and Dixcove fish landing sites where works are progressing steadily. In Axim, 2.5hectares of land has been reclaimed from the sea and a breakwater of 500meters long has also been constructed. A portion of the reclaimed land would be used by the fisher folks and the other portion for future development. In Dixcove, a 150-meter break water has been constructed to prevent sea erosion and destruction of canoes by the waves. A key wall of 50meters has also been constructed to aid in the loading and offloading of fish by fishermen.
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PIAC @ 10: A decade of championing transparency and accountability in the management and use of petroleum revenue By Jessica Acheampong
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atural resources, when exploited and managed well, remain a great source of wealth for nations. After a rather poor history of the management and use of the revenue of other natural resources in Ghana over the years, there was a resolve to do things differently with petroleum. Although crude oil production in Ghana has its history dating as far back as the early 1970’s, the discovery of oil in commercial quantities in 2007, and its commercial production from 2010 enabled the country to join the league of oil producing nations. The enactment of the Petroleum Revenue Management Act (PRMA), 2011 (Act 815) marked a new era; where the country sought to do better with revenues from this particular natural resource – oil and gas. The PRMA is to “provide the framework for the collection, allocation and management of petroleum revenue in a responsible, transparent, accountable and sustainable manner for the benefit of the citizens of Ghana in accordance with Article 36 of the Constitution for related matters.” In line with the Act’s framework, provision was made for the establishment and administration of the Petroleum Holding Fund (PHF) which receives all petroleum revenues and from which allocations are made to other designated funds. The formula for distribution and disbursement of funds from the PHF is outlined by the Act in the diagram below: Statutory funds established for the purpose of petroleum revenue management and use are the Ghana Stabilisation Fund (GSF), the Ghana Heritage Fund (GHF), the Annual Budget Funding Amount (ABFA). Other funds that receive petroleum revenues are the Contingency, Sinking Funds and the Ghana Infrastructure Investment Fund (GIIF). Creation of the Public Interest and Accountability Committee (PIAC)s To further strengthen transparency and accountability in the management and use of petroleum revenues, Section 51 of the Act provided for the creation of the Public Interest and Accountability Committee (PIAC), as an additional citizen-led
oversight body, to complement Parliamentary oversight. Membership of the Committee is drawn from 13 constituent groups, namely, Independent Policy Research Think Tanks, Civil-Society Organisations and Community-based Organisations, Trades Union Congress (TUC), National House of Chiefs, Association of Queen Mothers, and the Association of Ghana Industries (AGI) and Ghana National Chamber of Commerce and Industry (GNCCI). The rest are the Ghana Journalists Association (GJA), Ghana Bar Association (GBA), Institute of Chartered Accountants, Ghana (ICAG), Ghana Extractive Industries Transparency Initiative (GHEITI), Christian Groups, Muslim Groups, and the Ghana Academy of Arts and Sciences. The composition of PIAC shows that all citizens are represented, thereby promoting inclusiveness in the governance of the resource. The Accountability Committee has three main objects as outlined in the PRMA, which are, to monitor and evaluate compliance with the Act by government and relevant institutions in the management and use of petroleum revenues and investments and to provide space and platform for the public to debate on whether spending prospects and management and use of revenues conform to development priorities as provided under Section 21(3). The third mandate is to provide independent assessment on the management and use of petroleum revenues to assist Parliament and the Executive in the oversight and the performance of related functions. Promoting Accountability PIAC, in fulfilling its three-fold mandate has engaged citizens at both the district and regional
levels, and in all the regional capitals of the country. As a statutory requirement, the Committee publishes two reports – semi-annual and annual and has so far published 19 Reports -10 annual and nine (9) semiannual reports. Indeed, these reports remain a credible source of data on oil and gas production, revenue accrued, as well as its utilization in Ghana. The Reports, have each year, highlighted issues that require attention and have also proffered recommendations in that regard. The reports are submitted to Parliament, the Presidency, and also shared with stakeholders, with highlights shared with the public through various public fora, media outreach programmes and via social media platforms. As part of its independent oversight mandate, PIAC has visited and inspected projects funded from the Annual Budget Funded Amount (ABFA) in all the regions of the country, and has made public its findings on these projects. In August 2020, the Committee published its first Issue Paper on the management and use of petroleum revenues, which catalogued a number of issues that needed urgent attention. It is important to highlight that these issues had been raised in previous PIAC Reports. Some of the issues relate to the administration of the ABFA, revenue collection, management and investment of the Ghana Petroleum Funds (GPFs), and the implementation challenges under the PRMA.
recommendations made in PIAC Reports that highlight infractions or mismanagement of petroleum revenues in the country. Furthermore, the PRMA did not make provision for PIAC to sanction for infractions. To a large extent, PIAC can only make recommendations to Parliament, for appropriate actions to be taken. Way Forward
Challenges
Ten years is enough time to do a retrospection of the mandate given to PIAC and how effective its execution has been. It is also time to look at how the Committee can be strengthened further to help strengthen the transition from transparency to accountability in the management and use of the country’s petroleum revenues. Repeatedly making recommendations which are discussed in the public space and gradually left to fade away is not good enough. They must be acted on by relevant institutions to ensure that governance of the sector is continually improved so that the resource will benefit citizens optimally. Ten years on, it is time to bridge the gap between PIAC and the public. The Committee’s website remains a repository of data on the country’s petroleum production, liftings, revenues and their utilisation till date, and the public is invited to visit the platform for information and education. PIAC is also present on social media: Facebook, Twitter and Instagram as @PIAC Ghana. Connect with the Committee today, and let us collectively push for accountability.
Despite the achievements made over the last 10 years, PIAC’s work continues to experience challenges. There is room for improvement regarding the implementation of
The writer is the Communications Officer at the Public Interest and Accountability Committee (PIAC) jessica.acheampong@piacghana. org; www.piacghana.org
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Will central bank digital currencies doom dollar dominance?
By Barry Eichengreen
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ome say that issuance of central bank digital currencies will transform the international monetary status quo by eroding the US dollar’s dominance of crossborder payments and greatly reducing transaction costs. But this is not going to happen. August 13-15 marks the 50th anniversary of “the weekend that changed the world,” when US President Richard Nixon suspended the dollar’s convertibility into gold at a fixed price and rung down the curtain on the Bretton Woods international monetary system. The subsequent half-century brought many surprises. From a monetary standpoint, one of the greatest was the dollar’s continued dominance as a vehicle for cross-border transactions. Under Bretton Woods, the dollar’s supremacy was readily explicable. America’s financial position coming out of World War II was impregnable. Changes in the price at which dollars could be converted into gold were unthinkable, first because of that financial strength and then, as the country’s monetary position weakened, because of the possibility that one devaluation would create expectations of another. Many thought that Nixon’s move would diminish the dollar’s international role. With the currency fluctuating like any other, it would be too risky for banks, firms, and governments to put all their eggs in the dollar basket. They would thus diversify by holding more reserves and conducting more transactions in
other currencies. Why this didn’t happen is now clear. The greenback had the advantage of incumbency: the fact that one’s customers and suppliers also used dollars made it awkward to move to alternatives. What’s more, the alternatives were – and remain – unattractive. As for the euro, there is a shortage of AAA-rated eurodenominated government bonds that central banks can hold as reserves. Those authorities are therefore reluctant to allow those they regulate to do business in euros, since they are unable to lend the currency to banks and firms in need. China’s capital controls complicate international use of the renminbi, while there are justifiable fears that Chinese President Xi Jinping could abruptly change the rules of access. And smaller economies’ currencies lack the scale to move a large volume of cross-border transactions. Some say that issuance of central bank digital currencies, or CBDCs, will transform the status quo. In this brave new digital world, any national currency will be as easy to use in cross-border payments as any other. This will not only erode the dollar’s dominance, the argument goes, but also greatly reduce transaction costs. In fact, the conclusion doesn’t follow. Imagine that South Korea issues a “retail” CBDC that individuals can hold in digital wallets and use in transactions. A Colombian exporter of coffee to South Korea can then be paid in digital won, assuming of course that nonresidents are permitted to download a Korean wallet. But that Colombian exporter will still need someone to convert those
won into something more useful. If that someone is a correspondent bank with offices or accounts in New York, and if that something is the dollar, then we’re right back where we started. Alternatively, the Colombian and South Korean central banks could issue “wholesale” CBDCs. Both would transfer digital currency to domestic commercial banks, which would deposit it into customer accounts. Now the Colombian exporter would end up with a credit in a South Korean bank rather than in a South Korean wallet – assuming this time that nonresidents are allowed to have Korean bank accounts. But, again, the exporter would have to ask the South Korean bank to find a correspondent to convert that digital balance into dollars and then pesos in order to have something of use. The game changer would be if CBDCs were interoperable. The South Korean payer would then ask its bank for a wondenominated depository receipt, and a corresponding amount of CBDC in the payer’s account would be extinguished. That depository receipt would be transferred into a dedicated international “corridor,” where it could be exchanged for a peso depository receipt at the best rate offered by dealers licensed to operate there. Finally, the Colombian payee’s account would be credited with the corresponding number of digital pesos, extinguishing the depository receipt. Voilà! The transaction would be completed in real time at a fraction of the current cost without involving the dollar or correspondent banks. Unfortunately, the conditions for making this work are
formidable. The two central banks would have to agree on an architecture for their digital corridor and jointly govern its operation. They would have to license and regulate dealers holding inventories of currencies and depository receipts to ensure that the exchange rate inside the corridor didn’t diverge from that outside. And they would have to agree on who provides emergency liquidity, against what collateral, in the event of a serious order imbalance. In a world of 200 currencies, arrangements of this type would require 200 factorial bilateral agreements, which is obviously unworkable. And corridors of many countries, though sometimes imagined, would require rules and governance arrangements considerably more elaborate than those of the World Trade Organization and the International Monetary Fund. This, clearly, isn’t going to happen. CBDCs are coming. But they won’t change the face of international payments. And they won’t dethrone the dollar. Barry Eichengreen is Professor of Economics at the University of California, Berkeley, and a former senior policy adviser at the International Monetary Fund. He is the author of many books, including the forthcoming In Defense of Public Debt.
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MONDAY MAY 3, 2021
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MTN Ghana hires KPMG to handle anniversary promo By Eugene Davis ugendavis@gmail.com
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elecommunication giant MTN has engaged audit experts, KPMG to conduct score rankings for the network’s 25-year anniversary promotions, expected to last for three months. As part of activities earmarked to celebrate MTN’s 25 years of operating in Ghana, it is rewarding customers with cash, souvenirs and the highlight of the rewards is a new Hyundai Sonata car for its loyal customers. Speaking at a virtual media briefing on Tuesday on the anniversary promo, Mr. Maxwell Arthur,Senior, Specialist Segment Marketing, indicated that KPMG has been contracted as external auditors –they will do the ranking for MTN to publish. He explained at the past three months usage is used to determine customers’ threshold, which puts one in a good way to
stand a chance of winning any of the assorted prizes. The promotion is based on usage where participants accrue points by making calls, using Data, sending SMS, subscribing to digital services and performing Mobile Money transactions where fees are charged. To participate,
customers are expected to dial *156# and select option 5. Participants of this promo could win a brand-new Hyundai Sonata, Cash Rewards, free Airtime amongst others. The entire anniversary promo is expected to cost the telecommunication company an
estimated GHc10m. MTN launched its anniversary in June, with a goal to put up an ICT hub in the country to commemorate their celebrations and indicated their readiness to partner government in making Ghana a digital hub in Africa.
Lubricants Supplies Ghana celebrates 5-years of customer-centric service
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ubricants Supplies Ghana, the main distributor of the preferred ONE-STOP global brand for Lubricants – Castrol, has demonstrated its customercentric services as it celebrates five years in Ghana. As part of the celebration, the company embarked on a national road show – float for two days in each region to create more brand awareness and it’s price competitiveness for the Castrol brand. The Managing Director of
Lubricant Supplies Ghana, main distributor of Castrol, Nikolause Oduro-Baah, indicated that the company in the past five year, has employed over hundreds of Ghanaians across the distribution value-chain of the Castrol Lubricant oil. Castrol is the leading brand with the highest OEM approvals in industrial lubricants such as lubricating oil, greases, metal working fluids, control fluids and other manufacturing, mining, marine and automotive lubricants
in Ghana. Recently, the company begun an all-new Castrol GTX promotion, where Castrol Ghana maintained prices on its high premium GTX products. What is certain is that Castrol GTX is more than just an ordinary oil as it is liquid engineering. Prices have been maintained on all GTX products, which is matched with open market prices of other competing brands. The National Sales and Marketing Manager, Doris Yemdago, added that there are more programs lined up for the fifth anniversary celebration and stakeholders should look out for more exciting programmes and promos from Lubricant Supplies Ghana - Castrol Ghana. As part of the float, there were also give-aways like branded T-shirts, Coca – cola, jhelmets, aprons, glass cleaners, branded reflective, plates stands and so on. Some customers of Castrol products during the float
sincerely heaped commendations on the petroleum marketing company for maintaining prices on its products especially their high premium GTX products at a time when prices of competitors’ products have been increased. Castrol® GTX® compared to other lubricants of less quality is a premium conventional motor oil that allows for longer oil change interval and has been helping to extend engine life since 1968. Its double-action formula clears sludge and prevents new sludge formation. Castrol® GTX® lubricants enhances the good performance and efficiency of motor engines, minimises hazardous gaseous emissions, and helps to properly clean motor engines or machines that may have been clogged by particles. Castrol® GTX® is now available in 4L gallons to ensure affordability for smaller engine cars that require less than 5L for oil change.