Business24 newspaper 25th August, 2021 by Business24 Online

WEDNESDAY AUGUST 25, 2021

Germany’s economic success is an inspiration to Ghana - President

Monetising Ghana’s mineral resources through diversification into higher multiplier industries

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AfCFTA implementation plan to be launched next month By Eugene Davis ugendavis@gmail.com

By Benson Afful

overnment is set to launch the African Continental Free Trade Area (AfCFTA) Implementation Plan next month, aimed at positioning Ghana to maximise the benefits of the continental market, Anthony Nyame Baafi, a Special Advisor on AfCFTA to the Minister of Trade, has said. Following the start of trading under the AfCFTA in January 2021, government has established operational Cont’d on page 2

Oil palm producers call for review of benchmark policy affulbenson@gmail.com

he Oil Palm D e ve l o p m e n t Association of Ghana (OPDAG) has appealed to the government to review the 50 percent reduction in benchmark import values Cont’d on page 3

Ghana plays host to the AfCFTA secretariat, which is expected to facilitate the efficient conduct of business of the AfCFTA

Cocobod says board approved expired fertilizer write-off By Benson Afful affulbenson@gmail.com

ocobod says it got approval from its board of directors to write off the cost of expired fertilizer and agro-chemicals in 2018 valued at GH¢23.9m. The Auditor-General, in his 2020 report on the cocoa sector regulator, said expired

Media and marketing comms industry must lead post-Covid recovery efforts— Stanbic MD By Patrick Paintsil p_paintsil@hotmail.com

anaging Director Stanbic Bank Ghana Limited, Kwamina Asomaning, has Cont’d on page 5

Cont’d on page 3

instagram.com/business24gh

Editorial / News

WEDNESDAY AUGUST 25, 2021

Editorial

A national AfCFTA implementation plan could be the gamechanger

overnment has indicated that it would launch its implementation plan for the African Continental Free Trade Area (AfCFTA) to guide the nation’s participation in the single continental market. Considering that trade under the agreement started at the end of the year, it is obvious that we have lagged with the development of this document but its better late than never. A national guiding document for such an ambitious trade journey is very necessary if the nation could make the most of the immeasurable offerings of the single market as it will provide workable, orderly and concise guidelines on

how Ghana will approach the continental market. The AfCFTA implementation plan will also empower both policymakers and trade actors to identify sectors with the better opportunities for investments, partnerships and trade. In terms of attracting foreign direct investments, the national strategy will provide a blueprint for businesses, donors and other relevant stakeholders to follow for a necessary action to be taken. With this document in place, it is fair to say that Ghana is ready for the AfCFTA, having put in place other equally relevant structures and policies for effective and profitable trade

in the single market. The single market is currently garnering momentum since trading began January 1, 2021 and with a market of 1.2 billion people, and a combined gross domestic product (GDP) of US$2.5 trillion, the AfCFTA is projected to lead to a new era of development on the continent. It has been designed as a multi-stage process, meaning that the agreement will continue to evolve over time, and more negotiations are planned. We commend the government on its relentless efforts to get the nation and its business community well primed and ready for the AfCFTA market.

AfCFTA implementation plan to be launched next month Continued from cover

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committees to fast-track and streamline processes aimed at preparing Ghanaian producers to be competitive exporters to the regional market. According to Mr. Baafi, who was speaking at a virtual event by the UK-Ghana Chamber of Commerce

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The AfCFTA Secretariat in Accra

on the theme “Policy Landscape Session”, 100 companies have been identified for support to export to Africa. He added that government intends to facilitate trade by reducing the number of checkpoints on the country’s roads and expanding infrastructure. Government will also collaborate

with ECOWAS member states to improve the regional value chain, he said. The AfCFTA has been gathering momentum since trading began this year. With a market of 1.2bn people and a combined Gross Domestic Product (GDP) of US$2.5 trillion, the AfCFTA is projected to lead to a new era of development on the continent. It is also a stepping stone to an African Economic Community and Customs Union, as envisioned two decades ago under the 1991 Abuja Treaty. Already, the European Union (EU) has pledged €74m to support small and medium-scale enterprises (SMEs) under the AfCFTA. Ghana plays host to the AfCFTA secretariat, which is expected to facilitate the efficient conduct of business of the AfCFTA. It will develop the working programme and the annual budget and implement the decisions of the Ministers and Heads of State and Government. The AfCFTA has been designed as a multi-stage process, meaning that the agreement will continue to evolve over time, and more negotiations are planned. The first phase, covering goods and services trade, took effect this year, though talks to finalise tariff schedules and the rules of origin provisions remain ongoing.

News

WEDNESDAY AUGUST 25, 2021

Cocobod says board approved expired fertilizer write-off Continued from cover fertilizers and agro-chemicals valued at GH¢23.9m had been written off from the books of Cocobod in 2018 without parliamentary approval. Reacting to the report, Cocobod explained that when the current management took over administration in 2017, it was surprised to find out that there were significant volumes of chemicals and fertilizers in stock. It therefore caused an audit to be conducted on the items, which revealed that some fertilizers and agro-chemicals valued at GH¢23.9m had expired. “Management subsequently sought approval from the board of directors to write off the value of the expired agro-inputs from the books of Cocobod, an approval

which was duly granted,” Cocobod said. Cocobod explained that it normally procures fertilizers and agro-chemicals for distribution to cocoa farmers across the cocoa-

growing regions. It added that usually, these agro-chemicals and fertilizers are distributed and applied the same year. The board said it is taking steps to obtain retrospective

parliamentary approval of the write-off, adding: “We wish to assure our stakeholders that prudent measures have been put in place to prevent the recurrence of issues of this nature.”

Oil palm producers call for review of benchmark policy Continued from cover by exempting palm oil from the application of the policy. As part of reforms at the country’s ports aimed at reducing the incidence of smuggling, enhancing revenue mobilisation and making Ghana’s ports competitive, the government in 2019 slashed the benchmark values for all imports by 50 percent, except for vehicle imports, whose benchmark values were reduced by 30 percent. “Since the introduction of

the policy in 2019, the impact is adversely affecting the local palm oil industry,” said the association. The palm oil producers said local refineries and manufacturing industries are no longer viable to operate, as the refineries are unable to sell their products competitively against imported vegetable oil, which has become cheaper as a result of the policy, “which in essence has subsidised the imports to the disadvantage of local producers.” They cited the cost of a 25-litre jerry can of vegetable

oil produced locally at GH¢260 ex-factory price and sold on the market for GH¢265 inclusive of taxes. But they argued that the imported vegetable oil leaves the port at GH¢230 and is sold to traders at GH¢255 for onward selling on the market at GH¢260. The group said it was not advocating a complete abolition of the policy, as was being portrayed by the Ghana Union of Traders Association (GUTA), which backs the policy. “The leadership of GUTA is spreading falsehood to deter the government from reviewing the policy. GUTA is not actually fighting for traders but a handful of importers who are making

huge profits, while Ghanaians are at the risk of losing jobs and subsequently livelihoods at the downstream, where hundreds of thousands of rural smallholder/ outgrower farmers operate,” the oil palm producers said. They said the sector is experiencing job and income losses, especially in rural areas where local mills and smallholder farmers are actively engaged in the oil palm value chain, saying a mill that had 500 employees has downsized to 250 employees as at the beginning of 2021. The association said prior to the introduction of the benchmark policy, it had been working together with the Ministry of Food and Agriculture and the Customs Division of Ghana Revenue Authority against the practice of undeclared vegetable oil imports. “This policy has legitimised under-invoicing, hence the flooding of our markets with subsidised and substandard vegetable oils. Estimates of the undeclared importation (not conforming to regulatory standards) stand at approximately 6,000 to 7,000 metric tonnes per month, and the loss in revenue through tax evasion stands at an estimated US$3m per month,” the group said.

WEDNESDAY AUGUST 25, 2021

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WEDNESDAY AUGUST 25, 2021

Germany’s economic success is an inspiration to Ghana - President

resident Nana Addo Dankwa Akufo-Addo says Ghana is drawing inspiration from Germany’s success to build a progessive and prosperous country. With Ghana determined to participate fully in the global market place not on the basis of the exports of raw materials, but on the basis of the exports of things the country makes, realtions with the European economic giant, he said, is of “utmost importance”. “We, in Ghana, are drawing inspiration from the success stories of North Rhine-Westphalia and Germany, because, likewise, we want to build a progressive and prosperous country,” he said on Monday. The President was delivering a speech in Dusseldorf, in the Federal Republic of Germany, as part at the 75th anniversary celebrations of North RhineWestphalia, Germany’s foremost industrial region and most populous state. He is in that country for a State visit on the invitation of the German Chancelor, Angela Merkel. Germany is one of Ghana’s most important development partners. The priority areas of development cooperation between the two countries are decentralisation, promoting agriculture and sustainable

economic development. Addressing the gathering in the presence of the German Chancelor, President AkufoAddo said Ghana had resolved to walk hand-in-hand with North Rhine-Westphalia and Germany “because we desire to walk far, especially as we share attachments to common values of respect for individual liberties and human rights, of respect for the rule of law, and of respect for the principles of democratic accountability.” Noting Germany’s status as a major exporter of industrial products and technology, and with North Rhine-Westphalia being in the lead,, he said it was important for Ghana to increase trade and investment cooperation with German to boost Ghana’s speedy development and economic transformation. He said increasing trade and investment co-operation is one sure way Ghana can develop healthy, economic relations with North Rhine-Westphalia and Germany, and with the rest of the world, saying that this would help put Ghanaian products at the high end of the global value chain, and create jobs for the teeming youth of Ghanaian. “The recent establishment of a Volkswagen assembly plant in Accra is a welcome development, and we are encouraged by the

fact that more and more German companies have expressed their willingness to set-up shop in Ghana,” he said. President Akufo-Addo further held that Ghana and Germany must co-operate in ensuring the promotion of transparent and inclusive policy and decisionmaking processes at local, national, regional, continental and global levels. This would include, recognizing as key stakeholders, the State to help provide direction and facilitation; the private sector to drive the creation and management of markets, agriculture, industry and decent jobs; and civil society to help ensure accountability within the body politic. The President reiterated his commitment to renewing and deepening relations with Germany, with North RhineWestphalia at the centre, “to our mutual advantage”. “We do want to, and we shall work, to take Ghana to where she

deserves to be, a prosperous and dynamic member of the world community, which is neither victim nor pawn of the world order,” he stated. The President used the occasion to sympathise with the people of North Rhine-Westphalia on the recent flooding tragedy that befell them. Present at the event were the Minister-President for North Rhine-Westphalia, Armin Laschet, and Ghana’s Foreign Minister, Shirley Ayorkor Boitchway. As part of activities lines up for his visit to that country, President Akufo will also address a ceremony at the North Rhine Westphalia Academy of International Politics in Bonn as the guest of honour. He will consult with the manufacturer of the PfizerBioNTech COVID-19 vaccine on the establishment of a National Vaccine Institution in Ghana and the procurement their vaccines to improve Ghana’s vaccination drive.

Media and marketing comms industry must lead post-Covid recovery efforts—Stanbic MD proud of what this platform has reinstate the economy to preContinued from cover asked the media and marketing communications industry to lead the charge in garnering the right societal support that could fasttrack the economy’s recovery from the brunt of the coronavirus pandemic. Speaking at the Graphic Business/Stanbic Bank Breakfast Meeting in Accra, he said the industry could achieve this if it tackled the disparity in the information flow process to help create a well-informed citizenry that can undertake required actions to rebuild the economy. “The media and marketing communications industry is the oil that lubricates the economy; it is a potent force for social, economic and political progress. The industry should be able to

lubricate the economy to promote consumption, trade, commerce and investments,” he said. He added: “The industry must also project Ghana as a brand that must be managed for growth and profitability.” According to Mr. Asomaning, the media and marketing communications sector play a key role in post-Covid economic recovery and for that matter, they should not be ignored in any national development-oriented discussion. The breakfast meeting is a partnership between the bank and Graphic Communications Group Limited that provides the platform for critical deliberations on issues that bother on national development. “In line with the bank’s purpose of driving Ghana’s growth, we are

become,” said Mr. Asomaning. The meeting, which was on the theme “Media and Marketing Communication PostCovid; a catalyst for Africa’s socio-economic resurgence”, convened stakeholders in the media and marketing fraternity to discuss how the industry could be repositioned to drive the continent’s resilience and growth from the harm of the viral pandemic. Mr. Ato Afful, Managing Director of Graphic Communications Group Limited, indicated that the pandemic has caused a change in communal behaviour and means of communication and tasked the media to help rebuild social cohesion for inclusive growth. To him, the media has a clear responsibility and mandate to restore hope and confidence in society amid ongoing works to

Covid levels. Another equally important role, he said, would be how the media and marketing communicators could help critical economic areas such as the services and manufacturing sectors to regain their foothold from the pandemic. “The success of this duty will depend on how the media exploits its agenda setting role,” he added.

Mr. Kwamina Asomaning is the Chief Executive Officer of Stanbic Bank

WEDNESDAY AUGUST 25, 2021

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WEDNESDAY AUGUST 25, 2021

President woos more German businesses

resident Nana Addo Dankwa Akufo-Addo Tuesday rallied German investors and industrialists to invest in Ghana because of the conducive and vibrant business atmosphere in the country. Addressing the GhanaGermany Business Forum in Dusseldorf, as part of his working visit to Germany, he asserted that Ghana was a safe and lucrative business destination, a country that protects legitimate investment. The President who is in that country at the behest of the German Chancellor, Angela Merkel, told the German business community that his government, since assuming office in 2017, had instituted measures to reduce the cost of doing business and improve the business environment. As a result, the Ghanaian economy is one of the most business-friendly in Africa, and one of the fastest growing economies in the world between 2017 and 2020, averaging annual GDP growth rates of 7 per cent for those years, up from the 3.4 per cent GDP growth rate in 2016. “Indeed, with the economies of many countries around the world in recession, having recorded negative growth in 2020, largely as a result of the COVID-19 pandemic, Ghana’s economy

was one of the very few that still managed to record a positive GDP growth, albeit a very modest 0.9 per cent. “And In spite of the ravages of the pandemic, we are working to grow the economy at a much faster rate this year, our target being a five percent GDP growth rate, which will enhance the prospects of a win-win environment for both private sector and country; an environment where companies do not just survive, but actually thrive. In the first quarter of this year, the GDP of the economy grew at 3.1 per cent; in the second, at 8.9 per cent,” he said. Heartened that more German companies are looking to invest in Ghana, President Akufo-Addo assured the German business leaders and investors that their investments were safe, and urged them to participate in the exceptional investment opportunities in the country. With a foreign direct investment value of US$83.92

million, registered from Germany within the last decade, he said: “We will continue to create and maintain the conducive investment environment that not only guarantees the safety of investments, but good returns as well. “We will continue to protect legitimate investments, and preserve the atmosphere of peace, stability and security that has been an important contributor to the increasing presence of German businesses in Ghana,” he assured. With the opening of representations of German industry giant, ThyssenKrupp, and the German logistics global player, Kühne & Nagel, in the country, and the establishment of the Volkswagen Assembly Plant in Ghana, the President said “It continues to be an exciting time to be in Ghana, and to do business in the country. “Already, other global car manufacturing giants, Toyota and Nissan of Japan, Sinotruk

of China, have also established assembly plants in the country. Twitter is establishing its African Headquarters in Ghana, Google’s first African Artificial Intelligence Centre is located in Ghana, and the well-known Norwegian energy company, Aker, is much established in Ghana,” he said. President Akufo-Addo recommended to the Forum government’s flagship policies such as the “One District, One Factory”, “One Village, One Dam”, and the programme for “Planting for Food and Jobs”, as well as in areas in the water, health, housing, road and rail infrastructure, transport, industry, manufacturing, agriculture, petroleum and gas, the exploitation of our mineral wealth of bauxite, iron ore and gold, renewable energy and ICT growth sectors. “We are hopeful that, with solid private sector participation, we can develop a modern railway network with strong production centre linkages and with the potential to connect us to our neighbours. Indeed, Ralf Blankenbach and Havellandische Eisenbahn of Germany are part of a European consortium engaged in the $1.8 billion rehabilitation of the existing Eastern Railway line from Accra to Kumasi,” he added. GNA

UK Prime Minister announces new trade envoy to Ghana

nited Kingdom’s (UK) Prime Minister Boris Johnson has appointed 10 trade envoys across the world including the new Trade Envoy to Ghana, Madam Baroness Kate Hoey. The British High Commission in Accra said Madam Hoey’s appointment as new trade envoy to Ghana would strengthen UK-Ghana trade and drive the mutually prosperous partnership. It said Madam Hoey had been appointed for her experience supporting global businesses, all of which would help both British and Ghanaian businesses to find new export and investment opportunities. It said she would work closely with the UK in Ghana’s Trade Team as well as attending the twice annual UK-Ghana Business Council alongside senior representatives from the Government of Ghana and the UK’s Minister for Africa. The commission said Madam

Hoey has previously served as a Minister of State for the UK government working first in the UK’s Home Office and the then Department of National Heritage, now the Department for Culture, Media and Sport. It noted that she also served as a regional Member of Parliament (MP) for Vauxhall in London for 20 years. Madam Lindsey Gilbert-Crouch, UK’s Department of International Trade in Ghana, welcomed the appointment, saying: “We look forward to working with Baroness Hoey in her new role as Trade Envoy to Ghana. “The Baroness brings with her a wealth of knowledge and experience which will strengthen and broaden the already mutually prosperous UK-Ghana partnership. “As we look ahead to COP26 in Glasgow later this year, we know that Baroness Hoey will also be interested in Ghana’s work to create a greener and

more sustainable business environment.” The commission said Ghana had a vibrant, dynamic business community with strong links to the UK. It said in 2020, a year of significant business uncertainty, bilateral trade between the UK and Ghana reached just over £1Bn and over the last financial year the UK more than £180 million worth of business deals. It informed that the UK’s trade and investment work continues to closely align with Ghana’s beyond aid agenda supporting development in the country’s infrastructure through roads and water as well as the security sector. It said the recent trade deal signed between the UK and Ghana would not only continue to build on the existing mutually prosperous partnership but also provide Ghana with tariff free access to the UK. Madam Liz Truss, the UK

Madam Baroness Kate Hoey

International Trade Secretary, said: “Our Trade Envoys play a key role in delivering our ambitious global trade agenda, and I am delighted the Prime Minister has appointed 10 Trade Envoys who will boost opportunities for businesses in some of the world’s fastest growing markets. “As we seek to boost exports, promote investment, and break down barriers to trade, our Trade Envoys will support us to share in the benefits that a closer trading relationship can offer to our businesses and our communities.”

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WEDNESDAY AUGUST 25, 2021

Vodafone holds virtual skills fair for the youth

elecommunication giant, Vodafone Ghana, is set to host a virtual skills fair dubbed #LevelUp on Friday, 27th August 2021.The initiative is in line with the Telco’s commitment to support government’s efforts at addressing the unemployment and digital skills gap among the youth. The fair will provide career guidance, access to training content and help the youth make informed career choices through a series of speaker sessions. The one-day event will host industry experts who will share their knowledge, experiences, and skills with the youth through engaging presentations. Without a doubt, the pandemic and the measures put in place to combat it have had a significant impact on the lives of young people. It has affected access to education, in addition to impacting employment and job opportunities. Vodafone's first virtual career fair is certainly a

timely solution that will address the increasing unemployment and skill gaps amongst the youth. Speakers for the virtual event include Vodafone CEO, Patricia

Obo-Nai, who is very passionate about the youth and skills for the future; Rev. Dr. Joyce Aryee, Founder and Executive Director of Salt & Light Ministries and

Formalised partnerships with private sector necessary for implementation of SDGs- Finance Minister

r. Ken Ofori-Atta, the Minister of Finance, says the country can successfully implement the Country Development Goals through formalized partnerships with the private sector. He said with the passage of the Public-Private Partnership (PPA) law, a significant milestone was achieved in efforts to adopt sustainable financing solutions for sustainable development linking global and local partners. The Minister was speaking at the opening ceremony of the Virtual Accra Sustainable Development Goals (SDGs) Investment Fair being organized by the Ministry of Finance, in partnership with the Ghana Investment Promotions Centre (GIPC) and Social Enterprise Ghana. The three-day event is on the theme: “The Decade of Action: Accelerating Recovery and Revitalization.” The Fair will provide a platform for discussions on Recovery and Revitalisation Programmes as well as offer an avenue for private sector collaboration with the government in implementing the SDGs within the decade of action. It will also bring together High-Level government Officials, Community Facilitators,

Investors, Civil Society, Entrepreneurs to help develop a sustainable network for postCOVID-19 strategies that will support the government’s vision of a Ghana Beyond Aid. Mr Ofori-Atta said the PPA Act was an instrument that would facilitate access to more private sector financing for development to ensure efficiencies that allow the country to optimize the resource of the nation. He said apart from enacting the PPP law to create an enabling environment for the private sector, the government has been working ardently on improving the score for ease of doing business by moving government services online through programmes. The minister said the impact of COVID-19 on the economy and the people’s wellbeing has dramatically influenced the way businesses were done, how people interact with one another and on a global scale how SDGs were financed with only about nine years to go. He said now about two years later, some of these successes had been derailed by the debilitating effects of COVID-19 and climate change enable the country to have increased hunger, poverty and an increased gender and income inequity.

“Pandemics like COVID-19 expose the fundamental defects in health care and economic policies, systems, and practices at community, national and global levels. So far, Ghana has recorded 111,000 cases and 930 deaths. Our recovery rate stands at about 93 per cent, which is in line with the average recovery rate in Western Africa, approximately 92 per cent. The government was able to administer close to 1.3 million doses of COVID-19 vaccines and also began the single largest health infrastructure investment since independence with the construction of 111 district and regional hospitals under Agenda 111 as part of an effort to build back better post-COVID-19. “Unfortunately, where our focus should have been on accelerated actions to realise the SDGs, we find ourselves focusing on a resilient recovery - restoring growth, rebuilding a better and more robust economy and society, one capable of withstanding future events like the coronavirus pandemic. We have had to backtrack in order to move forward,” he added. He said in 2019, before the pandemic, the financing gap to achieve the SDGs in developing

a former Minister of State; Hannah Ashiokai Akrong, Human Resource Director at Vodafone Ghana; Alhaji Abu Issa Monnie, top news anchor at TV3 and PR and Media Relations Manager at Consolidated Bank Ghana; Stephen Appiah, celebrated retired Ghanaian professional footballer; Nixon Amoah-Awuah, seasoned HR expert and the Managing Director of CarvinClay People Development; Bernard Avle, General Manager of Citi FM & Citi TV and the host of Citi FM's morning show The event will also host Maximus Ametorgoh, Digital Marketing Strategist and Technology Consultant; Claudia Lumor, Founder of Kollage Media, producers of GLITZ AFRICA Magazine and Events; Dzigbordi Kwaku-Dosoo, globally experienced Certified Highperformance Coach CHPC™ and Soft Skills Expert, and Stephen N. Boadi, Lead Enabler Marketing & Communications Professional.

countries was estimated to be US$ 2.5 – 3 trillion per year, according to UNCTAD. The minister said the government had determined through its Country Financing Framework that USD 522.3 billion was required to fully meet the country’s SDG targets by 2030, (averaging $52.2 billion per year). This translates into an average per capita cost of $1,505 per year, an increase to $45.7 billion in 2030. Mr Yofi Grant, Chief Executive Officer of GIPC, said building back better post-COVID-19 could not happen in isolation and would require all hands on deck. He said the Agenda 2030 for SDGs continued to state the importance of the private sector to include the Micro, Small and Medium Enterprise, cooperatives and multinationals in the achievement of the SDGs. He said the World Economic Forum, in partnership with the government, had developed the Country Financing Roadmap (CFR) for the SDGs initiative in Africa. He said sources for the financing of the SDGs included government 74 per cent, development partners 9 per cent, internally generated funds 4 per cent, other firms 13 per cent and statutory means 2 per cent. GNA

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WEDNESDAY AUGUST 25, 2021

ADB to finance Anglican Church rubber project

he Agricultural Development Bank Limited (ADB) is to provide funding support to the Accra Anglican Dioceses for the development of a rubber plantation project. The project to be located on a One Thousand (1000) Acres land at Assin Nsuta in the Central Region is expected to create jobs and add about 1,535 metric tons of raw wet cup lumps annually to the rubber industry in the country. Speaking during a courtesy call on the Management of the Bank, the Lord Bishop of The Anglican Diocese of Accra, Rt. Rev. Dr. Daniel Sylvanus Mensah Torto said the initiative was part of the Church’s Five (5) pillars of existence and operations. “To achieve this aim, the Anglican Diocese of Accra has developed a rubber plantation project which seeks to ensure financial sustainability of the church and also serve as an avenue of growth for its congregants and the nation at large,” he said. Bishop Torto added that the initiative was part of the efforts the Church was making to take advantage of the several government initiatives including; the One District One Factory and the Planting for Export and Rural

Development. According to the Anglican Bishop of Accra, the decision to approach the Bank was because of its renewed focus on the Agricultural sector and the wealth of experience in the rubber industry, which the Bank had financed over the years. Bishop Torto said the Church had identified the land and financing would be required for land development, procurement of inputs hence their decision to approach the Bank. In his remarks the ADB Managing Director, Dr. John Kofi

Mensah commended the Church for the initiative to venture into tree crop plantation especially Rubber to ensure financial sustainability and create jobs for its members. “This initiative is highly commendable and an indication of the preparedness of the Church to also contribute to National Development”. Dr. Kofi Mensah said with years of experience in financing the Rubber Plantation project, the Bank had started deliberations with the Outgrower Value Chain Fund (OVCF) to workout modalities to procure

concessionary loan to support the project. The Managing Director said due to long lasting relations with notable religious bodies such as the Anglican Church; they were comfortable to support the church to contribute to the socioeconomic development of the country. He said the Bank had experience in rubber plantation financing in the Western, Western-North, Central, Eastern and Ashanti regions since 1995 by providing livelihood for over 10,000 outgrower farmers.

Invest In Africa and Ghana Enterprises Agency sign MoU to support 1,000 MSMEs

nvest in Africa (IIA), a notfor-profit organisation and the Ghana Enterprises Agency (GEA) have signed a Memorandum of Understanding (MoU) to support Micro, Small and Medium Enterprises (SMEs) to deliver positive economic impact and create jobs. Based on synergies identified through their respective recovery and resilience programmes funded by the Mastercard Foundation, both organisations are collaborating to strengthen the resilience of local businesses and young entrepreneurs. The MoU will be valid for 12 months and will support between 500 to 1,000 Micro, Small and Medium Enterprises (MSMEs). Business development services and training aimed at improving compliance and regulatory standards in the food and beverage manufacturing industry will be one of the interventions of focus. As the industry expands

across Ghana, there is wide acknowledgement that lack of knowledge and training in safety standards poses a potential barrier to its continued growth. The GEA is an agency under the Ministry of Trade and Industry (MoTI) mandated to promote and develop the MSME sector in Ghana.

Since the COVID 19 pandemic, the GEA has focused on supporting local businesses as they navigate challenges resulting from the pandemic and begin preparing for opportunities created by the African Continental Free Trade Agreement (AfCFTA). Commenting on the signing of the MoU, IIA Ghana Country

Director, Carol Annang said, “We are privileged to join forces with GEA, as we look to build back better following the effects of the Pandemic. The synergies between us will ensure we deliver considered interventions to help the food and beverage industry back onto its feet. However, this is only the beginning, we recognise the potential this sector has and will help MSMEs target opportunities that arise as a result of the AfCFTA”. The Chief Executive Officer of GEA, Mrs Kosi Yankey-Ayeh, stated that “The growth in the Sector over the last few decades has been astounding, proving to be a bedrock for sustainable employment opportunities across the country. We want to continue increasing that contribution to the economy as we strive to endlessly improve standards, hold ourselves to better knowledge sharing and capacity building which will help further strengthen our MSMEs”.

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WEDNESDAY AUGUST 25, 2021

GOIL targets underserved as it opens 410th station

he national oil retailer, GOIL Company Limited, has opened its 410th station at Darkuman in Accra with a promise to reach all underserved communities across the country. The Group Chief Executive Officer (CEO) and Managing Director of GOIL Company Limited, Mr Kwame Osei Prempeh, gave the promise when he opened a one-stop shop service station, near the Darkuman Post Office in Accra. The new station, which is the 92nd in the south zone in Accra. It also has a modern lubricant centre to service all types of vehicles and a well-equipped tyre centre. There is also a fully-stocked GOIL shopping centre to cater for the consumer needs of customers. Mr Osei Prempeh asked customers to continue to patronise GOIL fuels and lubricants not only because the company was an indigenous oil marketing company, but also for the quality of products sold. He assured that consumers of GOIL would continue to reach out to all communities needing quality fuel and lubricants. He explained, had premium

fuel become popular with consumers because it was sold at the same price as other fuels although it was a high-quality product. The Zonal Manager South in charge of Accra, Mrs Helen Kyeremanteng, was grateful to traditional authorities and

residents of the area, especially the Darkuman queenmother and the Darkuman Zongo chief for accepting to partner the company to bring the station to the area. She appealed to commercial drivers and private vehicle owners to patronise GOIL products to obtain several benefits including

value for money for every litre of fuel bought. The event was attended by the Queenmother of Darkuman, Naa Dei Dei Amobiye, Darkuman Zongo Chief, Umar Yahuzah, Darkuman Zongo Aqusuhene, Ibrahim Adams among others.

SYNLAB expands operations in Ghana

YNLAB Ghana has announced a series of branch openings and branch upgrades. These include a new laboratory in Sunyani and upgrade of the

Korle-Bu, Koforidua and Tema BCPs into laboratories and an additional Blood Collection Point (BCP) in Tema. “As the first medical laboratory in West Africa to achieve

accreditation under ISO 15189 in 2008, we are determined to set the pace for excellence in medical diagnostics. Our international accreditation recognizes our commitment

to quality, competency, and reliable results,” the company said. Its laboratories are equipped to have radiology services, that’s diagnostic ultrasound and electrocardiography. “Our goal for opening laboratories across the country and upgrading current ones is to reduce Turnaround time (TAT) of delivering test results to improve disease diagnosis, treatment and monitoring by our medical professionals for better healthcare delivery services,” it said. “With the support of our foreign partners in Germany, Spain, Turkey, Belgium etc., we offer a portfolio of 5,000+ laboratory tests ranging from the most basic to the most advanced genetic tests.” Synlab Ghana has offices in Accra, Tema, Kumasi, Takoradi, Koforidua and Sunyani.

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WEDNESDAY AUGUST 25, 2021

IMF announces US$650bn SDR

s. Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF) has announced the largest allocation of Special Drawing Rights (SDRs) in history. “The largest allocation of Special Drawing Rights (SDRs) in history—about US$650 billion— comes into effect today. The allocation is a significant shot in the arm for the world and, if used wisely, a unique opportunity to combat this unprecedented crisis. “The SDR allocation will provide additional liquidity to the global economic system – supplementing countries’ foreign exchange reserves and reducing their reliance on more expensive domestic or external debt. Countries can use the space provided by the SDR allocation to support their economies and step up their fight against the crisis. “SDRs are being distributed to countries in proportion to their quota shares in the IMF. This means about US$275 billion is going to emerging and developing countries, of which low-income countries will receive about US$21 billion – equivalent to as much as 6 percent of GDP in some cases. “SDRs are a precious resource

and the decision on how best to use them rests with our member countries. For SDRs to be deployed for the maximum benefit of member countries and the global economy, those decisions should be prudent and well-informed. “To support countries, and help ensure transparency and accountability, the IMF is providing a framework for assessing the macroeconomic implications of the new

allocation, its statistical treatment and governance, and how it might affect debt sustainability. The IMF will also provide regular updates on all SDR holdings, transactions, and trading – including a followup report on the use of SDRs in two years’ time. “To magnify the benefits of this allocation, the IMF is encouraging voluntary channeling of some SDRs from countries with strong external positions to countries most in need. Over the past 16

months, some members have already pledged to lend US$24bn, including US$15 billion from their existing SDRs, to the IMF’s Poverty Reduction and Growth Trust, which provides concessional loans to low-income countries. This is just a start, and the IMF will continue to work with our members to build on this effort. “The IMF is also engaging with its member countries on the possibility of a new Resilience and Sustainability Trust, which could use channeled SDRs to help the most vulnerable countries with structural transformation, including confronting climaterelated challenges. Another possibility could be to channel SDRs to support lending by multilateral development banks. “This SDR allocation is a critical component of the IMF’s broader effort to support countries through the pandemic, which includes: US$117 billion in new financing for 85 countries; debt service relief for 29 low-income countries; and policy advice and capacity development support to over 175 countries to help secure a strong and more sustainable recovery.”

REIGN summit opens on August 26

he annual REIGN summit designed to provide the youth with relevant insights to afford them the impetus in business and leadership is scheduled for August 26, this year. On the theme, Kingdom Influence, the summit, which is scheduled to take place Thursday and Friday, will climaxed on Sunday, with the distinguished honour of renowned and global speakers such as host, Rev John Ntim-Fordjour, Rev Albert Ocran, Bernard Avle and Rev Dr Samuel Okae. It will impact the youth with knowledge on how to reign in leadership, business and entrepreneurship. Speaking ahead of the event in Accra, the convener who is the senior Pastor of VBCI-HHS, Rev John Ntim-Fordjour, called on all young leaders and entrepreneurs to come and experience the power of God to enable them rule and reign with kingdom influence. He assures all patrons of the three-day event a starter pack and awakening to ignite their

authority in the corridors of power. The Senior Information Systems Auditor at the Bank of Ghana (BoG), Rev Dr Samuel Senyo Okae, said he was looking forward to impacting all attendants with his razor-sharp message that sets them on a course of excellence. Joining the cross-section of

speakers for the first time on the forum is the celebrated Rev Albert Ocran, the Executive Pastor of International Central Gospel Church, (ICGC), Christ Temple, an author and Executive Coach. The co-founder of the Springboard Road Show Foundation and Lead Consultant at Legacy & Legacy will condense

his years of expertise with the youth to provide a springboard to launch them into their careers and business. REIGN 2021 comes off on the first floor of Polynter House, opposite MTN office, American House, East Legon.

WEDNESDAY AUGUST 25, 2021

News

WEDNESDAY AUGUST 25, 2021

AIT graduates 8th batch of PhDs

he Accra Institute of Technology (AIT), a technology-focused private university, has graduated its eighth batch of PhDs during its recently held 16th graduation ceremony at the university’s Knowledge City Campus (KCC) at Kokomlemle in Accra. This brings the total number of PhDs graduated at AIT since 2016 to 49 in the fields of engineering, business administration, education, and Information Technology. The 16th graduation ceremony also saw the graduation of 219 bachelor’s and 33 master’s degree holders from both the campus-based undergraduate programmes as well as the open university undergraduate and postgraduate programmes. The Chairman of the AIT Board of Trustees, Professor Edward Ayensu, in his address to the congregation, observed that all indicators point to the fact that AIT as a university with its high-powered and academically distinguished board of trustees are meeting several envisaged milestones as a young and growing dynamic institution which is showing all the encouraging signs of becoming a world-class

university. Prof Ayensu assured the congregation and all stakeholders that AIT shall not relent in its efforts to ensure the full fulfillment of that vision to deliver quality university education and facilitate cutting-edge research work for the benefit of all “our students.” The President of AIT, Professor

Clement Dzidonu, outlined among other things, great strides by the university in improving its academic programmes, saying that the university is currently doing Ph.D. research work in engineering, information technology, education, and business administration. He also encouraged the graduating class to avail

themselves and make the best of all opportunities that may come their way after their graduation. He assured those planning to pursue graduate studies at either the Master's or the Ph.D. level of an enriched academic life and experience at AIT, should they choose to enroll with their alma mater.

All set for UMB ‘Centre Of World’ golf

niversal Merchant Bank (UMB) has announced its headline sponsorship

of the third edition of the ‘Ghana Centre of the World’ Golf Tournament, scheduled

from Thursday to Saturday, at the newly christened ‘Centre of the World Golf Club’ in Tema, formerly Tema Country Golf Club. The three-day golf tournament, organised by the Ghana Tourism Development Company (GTDC) under the auspices of the Ministry of Tourism, Arts and Culture, is a tournament open to all golfers across Ghana and West Africa. This year’s tournament, dubbed the “Version3.0” edition, is part of a larger initiative by the ministry and its agencies (including the GTDC) to celebrate and establish the ‘Ghana as the centre of the world’ brand. Chief Executive of UMB, Nana Dwemoh Benneh, noted that “We are proud, as a leading Ghanaian Bank to once again support and partner the agile and forward-looking Ghana Tourism Development Company; in promoting tourism and the ‘Ghana Nation-Brand’ by leveraging this national asset. Thus, our full support for this exciting golf tournament,

structured to celebrate this unique attribute.” CEO of the Ghana Tourism Development Company (GTDC), Kwadwo Odame Antwi, said “We are excited that a Ghanaian bank, UMB, has seen the value in our strategy to grow the Ghana brand by leveraging attributes including our geographical location. Research indicates the power of sports marketing in promoting nation brands, and we aim to grow this golf initiative to promote Ghana as the desired destination in Africa.” He said under the auspices of the minister, “we are pursuing discussions with investors to develop the Centre of the World Golf Club into a top-notch facility, at par with what pertains in Dubai, South Africa and other major tourist destinations.” The golf tournament, structured as an open, is expected to attract over one hundred professional and amateur golfers from West Africa as well as captains of industries.

WEDNESDAY AUGUST 25, 2021

Feature

WEDNESDAY AUGUST 25, 2021

Cryptoassets as national currency? A step too far

By Tobias Adrian and Rhoda Weeks-Brown

ew digital forms of money have the potential to provide cheaper and faster payments, enhance financial inclusion, improve resilience and competition among payment providers, and facilitate crossborder transfers. But doing so is not straightforward. It requires significant investment as well as difficult policy choices, such as clarifying the role of the public and private sectors in providing and regulating digital forms of money. Some countries may be tempted by a shortcut: adopting cryptoassets as national currencies. Many are indeed secure, easy to access, and cheap to transact. We believe, however, that in most cases risks and costs outweigh potential benefits. Cryptoassets are privately issued tokens based on cryptographic techniques and denominated in their own unit of account. Their value can be extremely volatile. Bitcoin, for instance, reached a peak of $65,000 in April and crashed to less than half that value two months later. And yet, Bitcoin lives on. For some, it is an opportunity to transact anonymously—for good or bad. For others, it is a means to diversify portfolios and hold a speculative asset that can bring riches but also significant losses. Cryptoassets are thus fundamentally different from other kinds of digital money. Central banks, for instance, are considering issuing digital currencies—digital money issued in the form of a liability of the central bank. Private companies are also pushing the frontier, with money that can be sent over mobile phones, popular in East Africa and China, and with stablecoins, whose value depends on the safety and liquidity of backing assets.

Cryptoassets as legal tender? Bitcoin and its peers have mostly remained on the fringes of finance and payments, yet some countries are actively considering granting cryptoassets legal tender status, and even making these a second (or potentially only) national currency. If a cryptoasset were granted legal tender status, it would have to be accepted by creditors in payment of monetary obligations, including taxes, similar to notes and coins (currency) issued by the central bank. Countries can even go further by passing laws to encourage the use of cryptoassets as a national currency, that is, as an official monetary unit (in which monetary obligations can be expressed), and a mandatory means of payment for everyday purchases. Cryptoassets are unlikely to catch on in countries with stable inflation and exchange rates, and credible institutions. Households and businesses would have very little incentive to price or save in a parallel cryptoasset such as Bitcoin, even if it were given legal tender or currency status. Their value is just too volatile and unrelated to the real economy. Even in relatively less stable economies, the use of a globally recognized reserve currency such as the dollar or euro would likely be more alluring than adopting a cryptoasset. A cryptoasset might catch on as a vehicle for unbanked people to make payments, but not to store value. It would be immediately exchanged into real currency upon receipt. Then again, real currency may not always be readily available, nor easily transferable. Moreover, in some countries, laws forbid or restrict payments in other forms of money. These could tip the balance towards widespread use of cryptoassets. Proceed with caution The most direct cost of

widespread adoption of a cryptoasset such as Bitcoin is to macroeconomic stability. If goods and services were priced in both a real currency and a cryptoasset, households and businesses would spend significant time and resources choosing which money to hold as opposed to engaging in productive activities. Similarly, government revenues would be exposed to exchange rate risk if taxes were quoted in advance in a cryptoasset while expenditures remained mostly in the local currency, or vice versa. Also, monetary policy would lose bite. Central banks cannot set interest rates on a foreign currency. Usually, when a country adopts a foreign currency as its own, it “imports” the credibility of the foreign monetary policy and hope to bring its economy– and interest rates–in line with the foreign business cycle. Neither of these is possible in the case of widespread cryptoasset adoption. As a result, domestic prices could become highly unstable. Even if all prices were quoted in, say, Bitcoin, the prices of imported goods and services would still fluctuate massively, following the whims of market valuations. Financial integrity could also suffer. Without robust anti-money laundering and combating the financing of terrorism measures, cryptoassets can be used to launder ill-gotten money, fund terrorism, and evade taxes. This could pose risks to a country’s financial system, fiscal balance, and relationships with foreign countries and correspondent banks. The Financial Action Task Force has set a standard for how virtual assets and related service providers should be regulated to limit financial integrity risks. But enforcement of that standard is not yet consistent across countries, which can be problematic given the potential for cross-border activities. Further legal issues arise.

Legal tender status requires that a means of payment be widely accessible. However, internet access and technology needed to transfer cryptoassets remains scarce in many countries, raising issues about fairness and financial inclusion. Moreover, the official monetary unit must be sufficiently stable in value to facilitate its use for medium- to long-term monetary obligations. And changes to a country’s legal tender status and monetary unit typically require complex and widespread changes to monetary law to avoid creating a disjointed legal system. In addition, banks and other financial institutions could be exposed to the massive fluctuations in cryptoasset prices. It is not clear whether prudential regulation against exposures to foreign currency or risky assets in banks could be upheld if Bitcoin, for instance, were given legal tender status. Moreover, widespread cryptoasset use would undermine consumer protection. Households and businesses could lose wealth through large swings in value, fraud, or cyber-attacks. While the technology underlying cryptoassets has proven extremely robust, technical glitches could occur. In the case of Bitcoin, recourse is difficult as there is no legal issuer. Finally, mined cryptoassets such as Bitcoin require an enormous amount of electricity to power the computer networks that verify transactions. The ecological implications of adopting these cryptoassets as a national currency could be dire.

WEDNESDAY AUGUST 25, 2021

Feature

WEDNESDAY AUGUST 25, 2021

Experience education and entertainment with Huawei MatePad T10 and MatePad T10s

uge improvements have been made with the way we interact and relax with technology and the tablet has become a key player, receiving serious attention from users and manufacturers. Brands work tirelessly creating unique features for the ultimate go-to tablet for families – Be it for playing educational games with the children, or a parent reading a book, it provides everyday entertainment on the go. Huawei is committed to creating durable, affordable yet high-quality tablets, and the HUAWEI MatePad T 10 and HUAWEI MatePad T 10s are the culmination of that effort. Both are ideal for family life, but both with a unique set of skills for different scenarios. Weighing only 450g, the HUAWEI MatePad T 10 comes in a lightweight Deep-sea Blue metal back cover and ergonomic curves that ensure a comfortable hold. Bezels surround the 9.7-inch 16:10 HD display, providing an expansive display area for everything including watching videos. Two large sound cavity speakers located on the sides, provide high-quality audio and are further enhanced by the HUAWEI Histen 6.1 software that adds 9.1-channel 3D surround sound support, Bass Booster, and additional configuration options for personalising the experience. This means, the HUAWEI

MatePad T 10 is ultra-portable and the ideal tablet to throw in your bag and head out, ready for your family to use at a moment’s notice. The HUAWEI MatePad T 10s on the other hand is perfect for families looking for some serious power. Equipped with a 10.1-inch Full HD display with a resolution of 1920x1200, an immersive viewing experience is guaranteed. With the support of dual high amplitude speakers and Huawei Histen 6.1, the HUAWEI MatePad T 10s not only fulfills younger users’ desires for new experiences but also satisfies their needs for highquality music, variety shows, movies, and reading. A truly versatile device, it also serves as a helper for senior people and offers kids a good platform to learn and play. Thanks to their display and audio features, both tablets are perfect for all kinds of entertainment, be they watching movies or catching up with the latest episodes of popular shows. Its display and audio features also make it a more practical choice for students who need a tablet for school use, especially for online classes, educational videos, or even easier research on the go. HUAWEI MatePad T 10 and HUAWEI MatePad T 10s were designed with multilayer intelligent eye protection features, including blue light

filter, posture alerts, bumpy road alerts, and eBook mode, to add protection to users’ eyes. As expected, blue light filtering comes as standard – turning cold tones into warm colour tones to protect the eyes from myopia. For those who multitask more often, both the HUAWEI MatePad T 10 and HUAWEI MatePad T 10s come with intelligent features like the App Multiplier, which allows for two instances of the same app to run side-by-side. For example, students can use this feature to attend an online lecture through their e-portals while also going through the course material in a second instance of the app. Another key feature of the tablets is the family-friendly ‘Kids Corner'. This dedicated area includes a preinstalled recorder, camera, multimedia, and painting apps, as well as control for parents to manage the selected apps they would like to give their children access to and which photos and videos they can see, allowing for peace of mind. Furthermore, parents can implement time limits throughout the day to make sure children do not overuse the tablet. What’s more, you can set different limits between the week and weekend, allowing parents to strike a balance between study and play across the week. Utilising the tablet’s gyro sensor, children are prompted to change position if they try to

lie down whilst using the tablet, as this causes eye strain through reduced circadian rhythm. When the eBook mode is enabled, the tablet adjusts the colours on display to offer a paper-like reading experience. Apart from this, the MatePad T 10s goes even further by offering distance and brightness alerts features. The distance alerts will automatically display reminders to keep the tablet a safe distance from children’s eyes. Thanks to its quality build, large storage, and Kids Corner, HUAWEI MatePad T Series is a reliable, affordable yet highquality tablet for entertainment, multimedia, and more. By introducing two iterations with slightly different specs, but the same core feature set, Huawei offers users the flexibility to decide the tablet which best suits their needs. If you are looking for a tablet that will easily handle the daily tasks of the whole family, being a hub for education and play, both HUAWEI MatePad T 10 and HUAWEI MatePad T 10s have got you covered. Enjoy gifts when you buy the HUAWEI MatePad T 10 for GH¢1,309 and the HUAWEI MatePad T 10s Wifi for GH¢1329 and the HUAWEI MatePad T 10s LTE for GH¢1429. Available now at the Huawei Experience Store, Accra Mall, and other Accredited Retail Shops.

Markets

WEDNESDAY AUGUST 25, 2021

Feature

WEDNESDAY AUGUST 25, 2021

The G7, the UN, and Afghanistan's future By Jeffrey D. Sachs

hen G7 leaders convene this week to discuss Afghanistan, they should be clear about the core goals: extricate their nationals and Afghan partners, and then work constructively with China, Russia, and other interested parties to end the country's 40year downward spiral. Enough of destruction; it is time to build. This week, G7 leaders will convene to discuss Afghanistan. It’s crucial that the G7 leaders think clearly about the important objectives for Afghanistan in order to avoid adding yet another cycle of misery, bloodshed, and mass refugee flows. Above all, they should use the meeting merely to coordinate policies among the seven countries in preparation for actions by the far more important venue, the United Nations Security Council. Without China and Russia at the table, there is no possibility of a coherent international approach to Afghanistan. With this in mind, the G7 should aim to engage with Afghanistan under the Taliban, not isolate or starve the country. This is important not only as a shortrun tactic to help get Westerners and vulnerable Afghans out of the country peacefully, but also to avoid future bloodbaths, humanitarian crises, and refugee surges. As tempting as it will be for the United States and its G7 allies to put a long-term hold on Afghanistan’s foreign-exchange reserves, freeze development aid, and intensify US (and possibly UN) sanctions, such an approach is doomed to fail, just as predictably as the 20-year NATO mission has just failed. The US knows a lot about punishing other countries, but it doesn’t know much – or perhaps care much – about fixing them. Many in the US political class are loudly calling for punishment of the Taliban. After all, the US has been deeply humiliated. But the rest of the G7, and the rest of the world, should reject calls for revenge from the same US politicians and strategists who did so much to get the US and NATO into this 40-year mess (US intervention in Afghanistan, we must remember, started in 1979, not 2001). These are the people who championed the initial US support for the mujahideen, which later became the Taliban and alQaeda. These are the people who favored the subsequent invasion

of Afghanistan in 2001. And these are the people who believed that a troop surge in the early Obama years would do the trick. These people should be ignored. If the Taliban refrains from vengeance killings against its foes or a brutal crackdown on women and girls, the G7 countries, the UN agencies, the International Monetary Fund, the World Bank, and the Asian Development Bank (ADB) should be ready to continue, and indeed to increase, financial support to Afghanistan. Yes, the US right will scream and label President Joe Biden a traitor. But the US right detests all foreign assistance, which is why the US has been incapable of helping poor countries to stabilize. The right wants to conquer countries, not help them to develop. There is more that the G7 should do. First, it should commission an independent study of why its development program during 2001-20 did not help Afghanistan to stabilize and improve sufficiently to enable the government and its military forces to resist the Taliban’s reconquest of the country. (Hint: Look at the lopsided spending on security rather than development; the chronically inadequate funding of social programs and infrastructure; the disjointed approach lacking an overarching strategy; the corruption among US contractors, not just Afghans; and the lack of clear and ambitious sustainable development benchmarks and targets.) Second, the G7 should call on the UN Security Council to integrate economic and sustainable development thinking into its future actions and planning vis-à-vis Afghanistan, with regular reporting from UN officials in Afghanistan. The Security Council should learn quarterly whether children, including girls, are in school (with supplies and teachers for them); whether clinics are functioning; whether villages have access to

water and electricity; whether mothers can obtain neonatal and obstetrical care; whether there is enough food to eat; and, finally, whether there are sufficient development funds to cover these essential needs. Such benchmarks are all part of the Sustainable Development Goals, and the SDGs should apply to a Taliban-led government in Afghanistan just as they should have applied to the NATO-backed government. Unfortunately, it was the NATO mission that didn’t take the SDGs seriously. In 2019, for example, the total donor aid to Afghanistan for educational programs came to a measly $312 million (see data here), or a meager $20 per child for Afghanistan’s 15 million school-aged children (ages 5-19). By contrast, the US spent around $1 million per year per soldier for the thousands of US soldiers in Afghanistan. Of that paltry sum given for education, none of the aid was channeled through the government budget. Instead, it came in the form of projects implemented directly by NGOs and other outsiders. It’s not surprising that the Afghan people thought very little of their government. It was playing no role in educating their children (or in other core social functions), and the donors were not helping the government to play any consequential role other than providing security. Some US politicians will probably be tempted to support new insurgent groups to fight the Taliban, ostensibly as a way to pressure the Taliban at the negotiating table. This is a typical US recipe, but it invariably leads to open-ended warfare. Fortunately, the US probably lacks the logistical means to support an insurgency, and it’s very hard to see China or Russia favoring such a naive approach. Barring support for insurgents, the US and even the G7 will be tempted to refuse to recognize

any Taliban-led government, denying that it has legitimacy. Such a move would then be used as a legal basis to continue to freeze Afghanistan’s foreignexchange reserves at the US Federal Reserve, and to put a hold on any new financing for Afghanistan from the IMF, World Bank, and the ADB. The US and its allies would thereby foment a deeper economic and humanitarian crisis. But to what end? Even crippling US sanctions rarely dislodge governments, and are very unlikely to do so in Afghanistan, just as they have failed to do so in recent years in Iran, North Korea, and Venezuela. The G7’s leaders should be clear about the core goals in Afghanistan: extricate their nationals and Afghan partners, and then work constructively with China, Russia, and other interested countries to end Afghanistan’s 40-year downward spiral that the US helped to initiate back in 1979. Enough of destruction. It is time to build. Jeffrey D. Sachs, University Professor at Columbia University, is Director of the Center for Sustainable Development at Columbia University and President of the UN Sustainable Development Solutions Network. He has served as adviser to three UN SecretariesGeneral, and currently serves as an SDG Advocate under Secretary-General António Guterres. His books include The End of Poverty, Common Wealth, The Age of Sustainable Development, Building the New American Economy, A New Foreign Policy: Beyond American Exceptionalism, and, most recently, The Ages of Globalization.

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MONDAY MAY 3, 2021

WEDNESDAY AUGUST 25, 2021

Monetising Ghana’s mineral resources through diversification into higher multiplier industries By Dr Samuel Frimpong Boateng

inerals-rich Africa has, for decades, found it arduous to pull off efficient management of mineral resources to create non-resource wealth and to ensure a more sustainable development. The ‘manufactured’ culprit has been lack of risk capital and technology, thus, inviting international skills and material capital to extract and drive away the much needed value. In as much as these FDIs are important for purposes of job creation and GDP upscale, it is more salient to procure policy innovations in mining investments properly structured to retain and protect value using optimal natural resource governance regimes and cogent local content programmes. It is even more exigent to develop extensive mining value chains for visible and feasible investment decisions and to jostle off mineral resource capital to other industries that prop up higher economic multipliers for faster diversification and more sustainable economic development. If properly designed and implemented, value-retaining, cheaper and optimal risk capital can be procured faster with more feasible investment decisions, freeing up mining royalties to finance industries with wider distributive capacity and higher economic multipliers. A well-developed extractives industry value chain that visibly documents characteristics of chain nodes with properly profiled interconnected risks has the power of attracting the right fit of risk-visible, lower cost investment capital. In addition to a more puissant natural resource policy innovations and extractives value chain development to ensure retained value, a quick options valuation exercise may shoot out the wand for Ghana – undertake an options valuation project to assess the relative benefits of investing and concentrating more in gold versus using same capital resources to diversify the economy into simpler, less capital intensive, higher-return and

higher multiplier industries like Agro Processing, Industrial Salt, Pharmaceuticals, Petrochemicals, Information Technology, and Textiles. If correctly configured and managed, these industries can easily replace the duly finite and depletable gold resources to sustain the local and national economies. It may even help in developing more competitive industrial giants in the country and across our sub-region due to the fact that natural resource revenue, as form of investment capital, has always been cheaper than commercial capital. No doubt, mining has a high propensity of stretching production linkages, backward and forward, and creating powerful secondary and tertiary industries to build sustainable local, regional, and national economies. Developing sustainable mining hosts, with optimal spill into the wider economy, is tied up with optimal mineral resource governance and effective partnership between government and the mining industry to work together to diversify revenue and infrastructure resources of these communities. Sustainability and economic efficiency within the minerals sector in the host regions and the wider country,

nonetheless, depend entirely on the efficacy of policy innovations to: a) Structure effective resource governance around efficient linkages (production, fiscal, and consumption) to benefit fully from the duly depletable mineral resources; b) Incorporate mining as part of economic management and develop winning bargaining skill to ensure more value from mining is retained in the country; c) Manage mineral assets as environmental national product adjusted for depletion of finite and environmental resources; d) Plan Ghana’s minerals economies in such a way as to maximise the development of mining-related secondary and tertiary sectors during the currency of mining operations; e) Actively pitch up supplier development and collective efficiency programmes; f ) Ensure more strategic technical collaborative partnerships between local and international expertise; g) Pursue restructuring aimed at optimising supply chains and increasing local supply. Beyond ensuring efficient resource governance, it is instructive to note that one of the smartest ways in preventing Ghana’s minerals revenue

collapse through consumption is to diversify into higher multiplier industries with wider distributive capacities. Using flexible and strong transformational institutions as driving agent and relying innovatively on winning trade structures, entrepreneurial scale-up, risk management, and optimal financing, Ghana can accrue more saving from mineral resource revues and build more tacit and sustainable non-resource capital. We can’t afford to get it wrong in ensuring competitive and inclusive economic diversification. This ensures the change of form of value from natural resources in the ground to other more sustainable assets such as manufacturing, infrastructure, human capital, technology and social capital. The country stands to gain massively when other resilient and growth industries replace the duly depletable mineral and natural resource sectors. Dr Samuel Frimpong Boateng CEO, Afrideg Ghana Limited (www.afrideg.co.uk) President, Centre for Investments, Trade and Industry CITI (www.citi-africa.com)