Business24 Newspaper 2nd February, 2022

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WEDNESDAY FEBRUARY 2, 2022

BUSINESS24.COM.GH

Wednesday February 2, 2022

Why support Africa's small farmers?

NO. B24 / 300 | News for Business Leaders

2021 tax news from the lens of a tax consultant

See page 8

See page 17

180 exports firms listed for gov’t support under AfCFTA

By Eugene Davis ugendavis@gmail.com

By Patrick Paintsil p_paintsil@hotmail.com

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inority Leader Haruna Iddrisu has asked leadership of parliament to come clean on when the Electronic Transfer Levy Bill (E-levy) will be reintroduced on the floor of the house in order to prevent surprises.

According to him, the minority are resolved in their decision to reject the bill and are looking forward to its reinstatement on the floor for debate.

The Ministry of Trade and Industry (MoTI) has announced a trade facilitation support programme for Ghanaian exporters seeking to explore market opportunities under the African Continental Free Trade Area.

According to deputy sector minister, Herbert Krapah, the intervention is a market expansion programme which constitutes an integral part of government’s Cont’d on page 2

Minority’s position on E-levy unchanged— Haruna

Africa’s free trade area holds the potential to advance equitable development for all of Africa’s people.

BoG maintains policy rate at 14.5percent due to inflation risks

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he Bank of Ghana (BoG) has kept its monetary policy rate unchanged at 14.5 percent.

The development comes after the bank’s Monetary Policy Committee last week held its first scheduled meeting of 2022 to review economic developments in the country.

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African Development Fund supports Ghana’s renewable energy dev’t with US$27.39m

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he Board of Directors of the African Development Fund has approved a US$27.39 million grant to Ghana for

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Editorial / News

WEDNESDAY FEBRUARY 2, 2022

Editorial

The media must step up public awareness about the AfCFTA

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espite the African Continental Free Trade Area is the biggest economic project that hoards enormous opportunities for the nation’s rapid socio-economic recovery from the harms of the coronavirus pandemic, public knowledge of the Africa-wide project has been below par.

If we are to help businesses to recover from COVID-19 by participating effectively in the AfCFTA, there must be a conscious effort by the media to ensure that the Ghanaian public and business community, especially small and medium sized enterprises as well as women-led business receive the relevant and

updated information on business opportunities that abound in the AfCFTA market.

We must also facilitate their access to knowledge about regulatory tools, instruments, and financing to harness these opportunities.

The media partners are an important bridge between policymakers and the public on one hand, and the national and regional institutions driving AfCFTA implementation.

As the gateway to enabling businesses, and the public to better understand and leverage the benefits that the AfCFTA offers, we have an important role to play in advocating for

and influencing the policies and additional investments required to make the AfCFTA work for all.

The goal must be to improve the understanding on the AfCFTA agreement as conveyors of information to be able to provide up to date content to help Ghanaian businesses and the public to leverage the agreement to expand access to continental markets, regional value chains, create jobs, and advance Ghana’s industrialization agenda.

AfCFTA has the potential to contribute to a green, inclusive, and resilient COVID-19 recovery across Africa and help put the continent back on track of the SDGs.

180 exports firms listed for gov’t support under AfCFTA Continued from cover

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action plan towards boosting Ghana’s participation in intraAfrican trade.

Addressing a media capacity building in Aburi, he disclosed that an initial batch of 180 companies that have been selected to benefit from the programme this year are currently undergoing an enterprise assessment to ascertain their specific needs and facilitation support.

“If properly implemented, this support programme would accelerate the readiness and participation of Ghanaian businesses under the AfCFTA. Touted as the new dawn of Africa’s integration, Africa’s free trade area holds the potential to advance equitable development for all of Africa’s people,” he said.

Mr. Krapah intimated that the intervention is a structured package for enhancing the trade competitiveness of Ghanaian producers and exporters in the single continental market.

He described the AfCFTA as Africa’s most ambitious integration initiative—and the largest free trade area since the formation of the World Trade Organisation—that will address the challenge of fragmented markets across the continent.

“The single market will help improve value addition to Africa's abundant natural resources, provide a boost in intra - Africa trade and ultimately, promote economic diversification and industrialisation.

That means, more jobs for Africa’s very young population, knowledge and skills transfer to the continent, and all put together, an improvement in a sustaining way, of the standard of living of our people,” he added.

Mr. Krapah tasked the media to play their critical role in enhancing public awareness about the opportunities of the single continental market.

The one-day training was jointly facilitated by the United Nations Development Programme (UNDP), the AfCFTA Secretariat and the Ministry of Information (MoI) under its recently launched media capacity enhancement programme to empower journalists to report accurately and adequately on AfCFTA activities.

UNDP’s Resident Representative, Ghana, Angela Lusigi, in her remarks, highlighted the seemingly low awareness on the AfCFTA in the country, with one in four agribusiness firms knows about the agreement, according its business tracker survey.

She encouraged the media ensure that the business community is well-informed the business opportunities that exist

in the AfCFTA and also facilitate their access to knowledge about regulatory tools, instruments, and financing to harness these opportunities.

“The media partners are an important bridge between policymakers and the public on one hand, and the national and regional institutions driving AfCFTA implementation.

You are the gateway to enabling businesses, and the public to better understand and leverage the benefits that the AfCFTA offers whilst advocating for and influencing the policies and additional investments required to make the AfCFTA work for all,” she indicated.

About 54 AU member states have signed the AfCFTA agreement but 42 of them have ratified same, whilst 40 have deposited their instruments of ratification with the AU Commission.

Regarding schedules of tariffs concessions, 44 member states have submitted tariff offers for trading under trade in goods; and 34 state and non-state parties have submitted their initial schedule of specific commitments under the protocol on trade in services to the AfCFTA Secretariat.

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News

WEDNESDAY FEBRUARY 2, 2022

BoG maintains policy rate at 14.5percent due to inflation risks Continued from cover Explaining the rationale behind its decision, Governor of the Bank of Ghana, Dr Ernest Addison, outlined key risks to inflation and decisive implementation of fiscal correction measures as its reasons.

“The key risks to the inflation outlook include: rising crude oil prices and its transmission to ex-pump petroleum prices and transportation costs, rising global inflation, food price uncertainties, and the fiscal outlook.

The Monetary Policy Committee envisaged this scenario when it raised the policy rate in November 2021 to contain the inherent aggregate demand pressures likely to drive prices in the outlook,” portions of the statement read.

“The Committee is of the view that the dynamics associated with the November 2021 policy rate hike are yet to be fully transmitted

and expects the decisive implementation of the fiscal correction measures, especially the 20 percent cut in expenditure to help moderate the upside risks to the inflation outlook,” the Governor explained.

Dr Ernest Addison, however,

said that the central bank's committee will continue to monitor the impact of these policy measures and will, when necessary, call an extraordinary meeting to re-assess the inflation outlook over the forecast horizon and take the necessary policy

decisions accordingly.

“Under these circumstances, the Committee has decided to keep the policy rate unchanged at 14.5 percent,” the Bank of Ghana Governor said.

Minority’s position on E-levy unchanged—Haruna Continued from cover Speaking on the floor of the house on Tuesday, Mr. Iddrisu enquired from the leader of government business the state of the bill: “I do not see anything relating to the E-levy on this important matter there can be no surprises, we want the leader of government business to lead us through when will it be

reintroduced.

We stand with the public in our position and rejection of the bill, we don’t want to be taken by surprises.”

According to Iddrisu, the minority expects to be in the know of everything pertaining to the e-levy as required under of under the standing orders of the house.

“We cannot continue with this

uncertainty, when will we subject the E-levy to a thorough debate and principles to consideration to third reading. We stand for its rejection. We hope the leader of government business will do what is appropriate within our standing orders, carrying us along,” he said.

Meanwhile, Majority Leader, Osei Kyei-Mensah-Bonsu, reacting to the minority leader’s

probe, indicated that both sides of the leadership will determine the time it will be re-laid in the house.

“We will determine when together, so it is not as if anybody wants to spring a surprise -it would have to be decided on and I have signalled him and we agree on a common date,” he assured.

The minority says they are emphatic on their entrenched position on the e-levy and want to stand with the public to reject its passage.

The minority leader added: “We on this want to stand with the republic to ensure the revitalisation of the economy.”

The Minister for Finance announced during the presentation of the 2022 budget the introduction of E-Levy of 1.75 percent on electronic transactions above GH¢100.

The levy will be applied to mobile money payments, bank transfers, merchant payments, and inward remittances.

However, the announcement has led to different reactions from the industry’s stakeholders, with some of them supporting the tax introduction as a way to collect public revenues while others criticizing such measure and its negative impact on digital payments and on the digitization journey that Ghana is championing.

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WEDNESDAY FEBRUARY 2, 2022

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News

WEDNESDAY FEBRUARY 2, 2022

Africa Investment Forum, AfCFTA bosses meet to discuss EU-Africa cooperation, trade

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head of the EU-African Union Summit scheduled for February 17-18, 2022, African thought leaders have stressed the importance of trade agreements and regional integration as keys to drive investment into the continent.

They said that during a discussion organised by the European Parliament to discuss Africa’s partnership and cooperation with the EU. A statement from the African Development Bank (AfDB) said the Senior Director of the Africa Investment Forum, Mr Chinelo Anohu, joined the Secretary General of the African Continental Free Trade Area (AfCFTA), Mr Wamkele Mene, and others, to reflect on deepening Africa’s relationship during the public hearing on African Trade and Finance last Monday.

In a keynote address, Mr Mene cited the EU as a model for African integration and described a strong Africa-Europe partnership as a “win-win.”

Africa’s youthful population and middle class presented significant opportunities for European businesses, he said in the statement, stressing the

pharmaceutical, automobile and agro-processing sectors as hungry for investment.

Mr Anohu, who participated in a panel discussion and a question and answer session following the opening remarks, called for a decisive partnership.

“There’s been a lot of talk and a lot of research but now it’s time for action. And how do you have this action translate properly on the continent? By very quickly, clearly, concisely, looking at the transactions themselves,” it added.

The panel also included the Head of Policy Analysis

and Research with the United Nations Conference on Trade and Development’s Division for Africa LDCs and Special Programmes, Mr Junior Davis; the President of The Pan-African Farmers’ Organisation, Mr Kolyang Palabele, and the Executive Director of the Southern and Eastern Africa Trade Information and Negotiations Institute, a civil society organisation, Ms Jane Nalunga.

Mr Anohu cited the abundance of capital and projects in Africa, while stressing the importance of project preparation and due diligence.

He noted also that the Africa Investment Forum had been supporting the AfCFTA through the Forum’s parent institution, the AfDB. “We were very gratified to hear about the launch of the global gateway and the $300 billion initially earmarked for it,” he said of the EU’s Global Gateway strategy, unveiled in late 2021.

“It’s a start, we’ll need a lot more, but this is something that is very exciting to us at the Africa Investment Forum, because it clearly charts a path where we can have a collaborative effort and ensure that deals on the continent have fruition,” he said.

Ms Nalunga of the Southern and Eastern Africa Trade Information and Negotiations Institute urged the EU to forgo country-by-country economic partnership agreements in favour of a continent-wide approach.

This meeting could not have come at a more opportune moment given the opportunities that both the Africa Investment Forum and AfCFTA can harness to accelerate a strategic alliance between Europe and Africa through targeted trade and investment prospects.

Over 60 winners rewarded in G –Money’s ‘Win Like a Gee’ Promo

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hana’s most welcoming bank, GCB Bank, has rewarded 67 individuals in its second monthly draw for the G-Money ‘Win like a Gee’ Promo as part of efforts to appreciate and motivate G money customers and agents across the country.

G-Money is a telecommunication agnostic service that allows customers to sign up and perform all mobile money transactions irrespective of their mobile network. Its affiliation with GCB Bank allows customers to enjoy better financial products and the safety and security of saving at a bank.

The mobile money platform is known for its services such as cash-in, cash-out, deposits, P2P transfer, airtime top-up, merchant payment, group services, voucher generation, ATM card-less withdrawal and GhQR code payments services among others. Apart from its safety and convenience, G-money also offers very competitive rates on transactions.

The 67, comprising of 20 agents and 47 customers, were rewarded with TV sets, refrigerators,

blenders, microwaves, laptops, ACs and smart phones for accumulating the highest number of points for G-Money transactions conducted for the month under review.

Speaking at the presentation ceremony, the Head of Mobile Financial Services at GCB Bank, Carl Ashie, lauded Ghanaians for their growing acceptance for the G money platform whiles urging them to carry out more transactions on the platform to increase their chances of winning big at the Grand Draw.

“GMoney, since its establishment as the mobile money arm of GCB Bank just 2 years ago, has seen remarkable growth in the number of subscriptions and transactions.

For us, this goes to reaffirm the confidence and trust that many individuals have reposed in our mobile money service. Indeed, this brings us great satisfaction and I would like to encourage all G- Money customers and agents to keep transacting to increase their chances of being rewarded,” he said.

Mr. Ashie noted that the G

Money platform is one of the most robust and accessible mobile money services across the country, describing it as a “key driver in the country’s financial inclusion through digital innovation agenda.”

“The G Money platform, one of the youngest mobile money platforms in the country, has become a force to reckon with owing to its high level of security, competitive rates and accessibility. Over the years, it has remained in the forefront of mobile financial services in the country,” he said.

On his part, Michael Dickson, one of the lucky winners, expressed his delight whiles commending GCB Bank for the reward: “I have been using G-Money for 8 months now and it is the only network I use to pay my bills, send and receive money, among others. G-Money has so far proven to be very secure and reliable. I

must confess that my experience on G-money has been amazing and I will keep transacting because of the convenience I enjoy and also because I want to win the ultimate prize.”

The monthly rewards in G-Money’s Win like a Gee Promotion will continue to run till the end of March this year where one G-Money customer and agent with the most accumulated points will win a brand new car each.

Simply visit the nearest GCB Bank branch or agent to sign up for G-Money and dial *422# to perform transactions and get rewarded. The more you transact, the more you build points and the higher your chances of winning a reward.

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WEDNESDAY FEBRUARY 2, 2022

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News

WEDNESDAY FEBRUARY 2, 2022

GARCC, waste management companies kickstart ‘Operation Clean Your Frontage’

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o enhance the government's drive in making Ghana the cleanest city in Africa, the Greater Accra Regional Coordinating Council (GARCC) in partnership with waste management companies have kick-started the ‘Operation Clean Your Frontage’ initiative.

The campaign, which begun yesterday (Tuesday, February 1, 2022), according to the Greater Accra Regional Minister, Mr. Henry Quartey, will help achieve the dream of Accra becoming the cleanest city in Africa.

He added that the project was also meant to get an all-handson-deck approach and therefore, urged residents and traders in Accra to get involved in achieving the dream.

The official launch which took place in October last year was beefed up with the inclusion of the Ghana Armed Force (GAF), Ghana Police Service (GPS), Ghana National Fire Service (GNFS) and the National Service personnel with a charge for them to ensure strict adherence to the various assembly bye-laws aimed at making Accra clean.

According to Mr. Quartey, who addressed them at the

Independence Square, the project calls for a show of patriotism and an all-inclusiveness approach.

Full compliance in achieving the agenda would inure to the benefit of all hence it was a clarion call to all Ghanaians to clean their frontages, he added.

"We travel to other countries and wish to be there again; it is because the citizens were law-abiding and thus making

those places beautiful. We can also do same and it starts from we cleaning our frontages," he indicated.

He further added, "With the Lord on our side, I am hopeful we will achieve our desired purpose."

The regional minister also called on Ghanaians to take interest in the affairs of the country to embrace the opportunity in the attainment of the dream.

"We are engaging all the waste management companies in the country some of which have the financial, logistical and human resources to champion this initiative," he said.

Mr Quartey was hopeful that with the help of God, the initiative would yield its intended purpose.

Later speaking to the media, the Executive Chairman, Jospong Group of Companies ( JGC), Dr. Joseph Siaw Agyapong, revealed that his outfit (Zoomlion) was well positioned to champion the agenda.

According to him, Zoomlion has made available 60 branded cars, 2,000 branded containers to be positioned at vantage locations.

He gave the assurance that with the revival of the One House, One Dustbin project, the dream of actualising the clean your frontage was sure to succeed.

With a public address system, massive education was embarked upon in areas including Farisko, UTC, First Light to Obetsebi, Digital Centre Circle, Sadisko to Tiptoe Lane and TUC to the Law School.

The rest were Okaishie, Tudu, Lapaz, High Street to Opera Square and finally Agbogbloshie.

McDan ordered to suspend use of KIA's Terminal 1 for private jet operations

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he Ghana Airports Company Limited (GACL) has ordered McDan Aviation to suspend the Private Jet lounge operations at Terminal 1 of the Kotoka International Airport (KIA).

In a letter dated January 31, 2022, signed by the Managing Director of the Ghana Airports Company Limited (GACL), Mr Yaw Kwakwa, an earlier notice to McDan to suspend its inauguration of the Private Jet lounge at Terminal 1 last Friday was referenced.

"We refer to our earlier discussions and subsequent directive to suspend the inauguration of the Private Jet Terminal at Kotoka International Airport (KIA) until all the necessary operational requirements and obligations are met", the letter stated.

"We note with concern, your failure to comply with the directive despite the outstanding issues on the prior terms and

conditions for the use and operations of Terminal 1 as a Private Jet Terminal," it added.

"Management has consequently directed the suspension of your use of Terminal 1 until further notice. You are kindly requested to relinquish the keys to enable Management undertake a Joint Inventory by close of business day, Monday, 31st January 2022.

The letter was copied to the Secretary to the President, Jubilee House; Secretary to the Vice President, Jubilee House; Minister of Transport, Minister of National Security, National Security Coordinator at KIA; Board Chairman of GACL and the Director-General of the Ghana Civil Aviation Authority (GCAA).

The GACL has accused McDan Aviation of breaching the laid down procedure after procuring its license to operate in 2019.

It said it has noticed with concern McDan's disregard for the norms of doing business in the aviation sector which

requires strict adherence to safety and security rules.

"Indeed, you have engaged in several activities without prior approval from GACL which has typically called for emergency corrective actions."

The GACL went ahead and cited one major example relating to the commencement of construction of the private jet terminal without a Plan of Construction Operation (PCO) approval from GACL. "We only became aware of your construction activities during routine security patrols,

and we had to ask you to stop and submit a PCO for review and approval before construction continued," the GACL said.

Meanwhile, McDan has suspended its operations at the "Fixed-Based Operator (FBO) Terminal with immediate effect for further engagement with the GACL. In a letter dated January 31, 2022, signed by the Executive Chairman of McDan, Daniel McKorley and addressed to the Managing Director of GACL, McDan stated:

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Agribusiness

WEDNESDAY FEBRUARY 2, 2022

Why support Africa's small farmers?

By Kofi Boa, Roger Thurow

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t the United Nations Climate Change Conference (COP26) last November, world leaders pledged billions of dollars to sustainable farming and agricultural research. This commitment comes at a critical time. Already, climate change is wrecking harvests around the world, and global hunger is on the rise.

The stakes are especially high for Africa’s small farmers, who work their fields by hand and are at the mercy of the elements.

The predictable weather patterns these farmers depended on in the past have disappeared.

This year, late rains in Ghana and neighboring West African countries delayed planting.

Then, unusually heavy rainfall at the end of the growing season hampered the harvest. In East Africa, swarms of locusts, fostered by hotter, wetter conditions, devoured a vast expanse of crops.

Africa’s farmers relied on the world leaders’ meeting at COP26 to take steps that might mitigate some of the worst effects of the climate crisis. While the commitments made in Glasgow set the stage for meaningful action, pledges to reduce greenhouse-gas (GHG) emissions likely fell short of what is needed to limit global warming to 1.5° Celsius, relative to pre-industrial levels.

With climate volatility set to continue, small farmers need

support to adapt to the changes they are already experiencing.

While most headlines about COP26 focused on emissions reductions, other commitments made in Glasgow provide hope for the future of global agriculture – if leaders follow through on their promises.

For example, the Agriculture Innovation Mission for Climate aims to provide meaningful support for climate-adaptive farming, agricultural research, and food-systems innovations.

The AIM4C initiative, led by the United States and the United Arab Emirates, has received pledges of at least $4 billion so far and seeks to double these commitments in the next year. AIM4C includes research projects by both government and non-government partners that explore everything from how gene-bank collections could unlock new climate-resilient crops to methods for reducing harmful methane emissions from livestock.

In addition, COP26 participants committed more than $1 billion to support agricultural research within CGIAR (formerly known as the Consultative Group on International Agricultural Research), the world’s largest research organization assisting small farmers in the developing world. Several countries also made individual pledges to aid climate adaptation in developing countries, including $197 million from the United Kingdom for

programs in Africa and $3 billion annually from the US by 2024 for adaptation finance.

Taken together, these commitments should help small farmers prepare for greater risks. Equally important, they should encourage industrialized agricultural systems to become more sustainable. Africa’s small farmers share none of the blame for the fact that, in the push to increase food production, agriculture has become a large emitter of GHGs. At the same time, the climate change that industrial agriculture is fueling affects food production around the world.

It lowers yields, weakens crop nutrients, disrupts the geography of farming, and threatens rural livelihoods. Ultimately, food supplies everywhere are at risk.

Unfortunately, it is far from certain that global leaders will fulfill their commitments to the future of Africa’s farmers – even though their fate will affect our food systems more broadly. The world’s richest countries have fallen behind on their promise from COP15 in 2009 to provide $100 billion annually for climatechange adaptation and mitigation in the world’s poorest countries.

And US funding for agricultural research that helps farmers both at home and abroad has largely stagnated in real terms since 2003, according to a recent report commissioned by the Farm Journal Foundation and the American Farm Bureau

Federation.

Programs that help Africa’s small farmers become more resilient in the face of climate change are doing invaluable work.

For example, at the Howard G. Buffett Foundation Centre for NoTill Agriculture in Ghana, farmers learn essential conservation practices that keep carbon in the ground, preserve nutrients, and retain soil moisture. Other programs, such as One Acre Fund and myAgro, also train Africa’s small farmers in sustainable practices and provide access to more resilient seeds. Often, these solutions enable farmers to harvest a good crop even when extreme weather strikes.

But these programs reach only a small percentage of the population. Millions living in rural Africa still experience an annual “hunger season” – a period of profound deprivation between harvests. It is a cruel irony that small farmers and their families are among the world’s hungriest people.

As Africa’s farmers work to adapt to climate change, global leaders must do their part by keeping – and extending – the promises they made at COP26. Increased investment in sustainable agriculture, including research and development, is critical to eliminating the continent’s hunger season and ensuring food security for all.

Credit: project syndicate

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News

WEDNESDAY FEBRUARY 2, 2022

Kwamina Bentsi Enchill Duker appointed first CEO of Development Bank Ghana

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ormer Managing Director of Fidelity Bank Asia, Kwamina Bentsi Enchill Duker, has been appointed as the first Chief Executive of the Development Bank Ghana (DBG).

Who is Mr. Duker ?

Mr. Kwamina Duker, brings to DBG, over 30 years’ experience in finance and investment across different geographies including the UK, Asia and Ghana.

He has in-depth knowledge in Treasury and Foreign Exchange (FX) markets from Deutsche Bank (UK and Singapore), Nomura Bank (UK) and Midland Bank (UK) where he held various senior positions.

He was the Managing Director of Fidelity Bank, Asia, a subsidiary of Fidelity Bank Ghana with total asset of over GHC 105 billion within which he subsequently served as a board member.

He has served on the board of Consolidated Bank Ghana, and also assumed the role of Head of Global Educational background Mr. Duker holds a Master of Business Administration from University of California and a

Bachelor of Science in Electrical and Electronic Engineering from Barking University, Essex, U.K. New Board for DBG Government has appointed a 7-member board to oversee the operations of the Bank. Sources say after its firm meeting, the members elected, Economist, Dr. Yaw Ansu, who has over 36 years of experience working on international institutions like the World Bank.

Dr. Yaw Ansu is a respected economist with over 36 years of professional experience spanning several countries.

For 26 years (1984-2010), Dr Ansu worked at the World Bank,

holding various technical and managerial positions, including Country Director for Zambia, Zimbabwe and Nigeria, Sector Director for Human Development in Africa and Network Director and Chairman of the Sector Board for the Economists Network at the World Bank, Headquarters in Washington DC. He holds a PhD and M.S in Engineering-Economic Systems from Stanford University, and a B.A. in Economics from Cornell University, U.S.A. Government sources say the Board appointment is in line with the relevant sections of the Development Finance Institutions Act 2020 (Act 1032, 2020) under which the Bank is regulated by

the Bank of Ghana Other membes on the board includes Mr. Stephan Leudesdorff, Mr. Charles Boamah, Ms. Rosemary Yeboah, Ms. Mary Boakye, Mr. Yaw Nsarkoh, and Ms. Nora Bannerman-Abbott.

They were selected for their relevant qualification, diversity of experience and skills, as well as their integrity DBG has become a key institution to promote private sector-led growth under the Ghana CARES Obaatanpa programme, which is an essential element for Ghana’s economic transformation post-covid. DBG has commenced operations with an initial total funding of over US$750 million from Government and notable Development Finance Institutions (DFI’s).

The Government expects DBG to use its strong financial position to support the growth of the private sector companies, create high quality jobs and enable Ghana’s private sector to compete more favorable within the AfCFTA framework. The Board has been tasked to rapidly establish its international pedigree and to scale up its resource envelop to drive the country’s economic transformation agenda in line with the Ghana Beyond Aid

AH Hotel & Conference and AH Café hosts maiden end of year staff party

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H Hotel & Conference, and AH Café, a subsidiary of the Jospong Group of Companies held their firstever end-of-year staff party on Thursday, December 30th, 2021.

Held under the strict observation of covid protocols, staff together with members of management were treated to a wide variety of local buffets,

assorted wines, live band music by the Sika Y3d3 Band, and a host of fun-filled activities at the cozy poolside of the hotel between 18:00hrs and 22:00hrs.

The staff were very engaged and took advantage of the event to reorganize, rejuvenate and reignite their commitment to the corporate objectives of the hotel for 2022.

Additionally, there was an open microphone session where staff with their invited guests took turns to demonstrate their lyrical talents while delivering inspiring goodwill messages.

During the event, the General Manager of AH Hotel and Conference & Cafe, Mr. Eddy Khosa, expressed his deepest gratitude to the staff and all departments for giving their very best to support the hotel since

its inception and especially from when he took over the leadership of the hotel. He urged all workers to consolidate their achievements by going the extra mile in 2022.

Furthermore, Mr. Khosa acknowledged the observable positive transformation that both the hotel and human capital have experienced over the last 2 years.

Staff were very excited and inspired by Mr. Khosa’s delivery and threw in countless accolades that reflected his strong principles for excellent service delivery; some of which include, “state of readiness, attention to details, flip chart, HR do the needful, business process notation model - BPNM…etc” Moreover, staff were impressed at the heavy turnout given that this was a first-time staff party.

Staff end-of-year party serves as a positive motivation and an expression of appreciation to staff by senior management.

Workers of AH Hotel and Conference & Café undoubtedly will be looking towards the next edition of this momentous event.

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Feature

WEDNESDAY FEBRUARY 2, 2022

Vice President Bawumia writes: Ghana pushing against urban warfare scourge

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ast an eye around the globe and you will see that we are at a crossroads in the containment of urban warfare.

From the rubbled streets of Aleppo in Syria to the high rises of Donetsk, Ukraine, the playing out of fierce exchanges in our towns and cities is not limited to one region or theatre of conflict, far from it.

To fight back against this deadly phenomenon, national governments must take a holistic approach, one that encompasses matters economic, geographic, and military, and they must do so now.

Indeed, this is the exact argument I made when representing His Excellency President Nana Akufo-Addo’s government at this week’s meeting of the United Nations Security Council, to which Ghana has been elected as a nonpermanent member.

In my speech, I called for UN members to follow a fourpronged approach to ensuring the best possible protection of our citizens from the ravages of urban conflict.

- Advertisement Before I outline these solutions, however, it is important to first define the challenge that we face.

While no one would disagree that society has benefitted from recent advancements in science and technology, these same advancements have also

resulted in the development of sophisticated weapon systems with the potential to wreak havoc on their surroundings.

Combine the use of these weapons with an increasingly urbanised world and the result is armed conflicts that are more deadly, more damaging to the infrastructure, and lead to more displacement than ever before.

Now consider the groups that have come to possess such high-level military capabilities, whether it’s Boko Haram in West Africa or ISIS in the Middle East and beyond.

These two terrorist organizations have not one iota of respect for human rights conventions and the accepted rules of war.

Indeed, they believe instead in the propagation of ‘total war’, a focus on victory at all costs, where citizens are commandeered as human shields, forced combatants, and often both.

While restraining the fundamentalism of an organisation like ISIS is essential, there are a number of faster, simpler ways of minimising the harm to civilians from urban conflict.

As a start, national authorities should prioritise the integration of civilian protection into the planning and conduct of military operations, instituting initiatives that enshrine effective tactics for doing so.

Following these new ‘rules of the game’, to be devised in

large part by military experts themselves will undoubtedly require humanitarian instincts and operational discipline.

Yet these are the qualities that differentiate us from the bad actors who wish to do our people harm.

Secondly, and complementing the required action outlined above, the protection of civilians should be placed at the heart of the international justice system.

International humanitarian law, often slandered by populist agitators, is the de facto guarantor of our rights as global citizens and governments must be resolute in following it.

We must also acknowledge, however, that while the international community can and must work hard to prevent urban conflicts, the grim rewards for terrorist groups of attacking populated areas makes them inevitable.

As a result, the strategic mitigation of the impacts of urban conflicts is an essential plank of any policy approach.

Infrastructure for evacuation efforts, designated shelter zones and emergency hospitals need to be put in place in likely hotspots, mirroring the current protocols for natural disasters.

Indeed, while technological innovation has strengthened our enemies, we need to use our own competences in construction and connectivity to protect the people we serve.

Having worked at the World

Bank and Ghana’s Central Bank amongst other positions, I have spent much of my adult life as an economist.

However, it does not take a master policymaker to understand that rapid urbanisation compounds the threat of urban conflict.

Fortunately, the appropriate response is equally simple.

National governments need to implement policies that radiate economic opportunity from large towns and cities to rural areas, reducing deadly conflicts but also regional inequality in the process.

For my Ghana, His Excellency President Nana Akufo-Addo and I have identified digitisation and automation, the so-called ‘fourth industrial revolution’, as the best way of improving rural opportunity and securing our urban areas.

Taking a step back from complex policy proposals, my message to the international community is simple.

In the face of growing conflict in urban settings, we, as democratic leaders, must take the necessary steps to protect the people who elect us.

And while the challenge at hand may be complex and our opponents unfeeling, a four-pronged approach to urban conflict, encompassing military reform, law and order, investment, and sound economic stewardship, will deliver us to a safer, more prosperous future.

11

News

WEDNESDAY FEBRUARY 2, 2022

University of Ghana and NORAD sign MoU

T

he University of Ghana and the Norwegian Agency for Development Cooperation have signed a Memorandum of Understanding (MoU) on the University of Ghana School of Law Ocean Governance and Development Project.

In brief remarks during the ceremony, the Vice-Chancellor, Prof. Nana Aba Appiah Amfo, under the watch of a Legal Officer, Mrs. Lawrencia Bertha Tsotsoo Ghansah, signed on behalf of the University of Ghana. The ViceChancellor expressed delight over the two entities coming together to collaborate on a project. She stated that the project has a real potential to transform lives and provide a pathway to how Ghana could meet its sustainable blue economy aspirations.

Prof. Amfo indicated that the project would provide a unique opportunity to create better synergies for multidisciplinary ocean related initiatives in Ghana.

“It also will provide the platform to reflect on how we can move forward towards an enhanced inter-agency coordination and cooperation on ocean and coastal issues in Ghana and the subregion”, she added. She further indicated certainty on the benefits the Government of Ghana would derive from the project, in relation to government’s demonstration of interest in prioritising the ocean. Prof. Amfo gave assurance of the University’s commitment

to making the project a success.

“For our colleagues from Norway, I would like to assure you that this project has the highest support within the University. I am personally committed to it and we are ready to provide all the support that will make this project a success”, she stated.

Prof. Amfo expressed a shared optimism in the ambition of the School of Law to move the ocean partnership from a project to a programme and to a fully-fledged and multidisciplinary Center for Ocean Governance in Ghana.

Ms. Bjorg Sandkjaer, State Secretary, Norwegian Ministry of Foreign Affairs, conveyed excitement in the partnership that had been created between Ghana and Norway through the University of Ghana and the Arctic University in Norway. She explained the role international cooperation plays in managing, protecting and using the ocean’s resources sustainably and noted that the signing of the MOU was an excellent example in that regard. Ms. Bjorg also

stressed the need for sustainable ocean management in order to ensure sustainable harvest and food production as well as employment for generations to come. “Experience shows that it is possible to harvest the sea’s resource without reducing their value”, she added.

The Director General of Norwegian Agency for Development Cooperation (NORAD) M. Bård Vegar Soihjell who signed on behalf of NORAD, in a brief address, noted the essence of the agreement signed.

He encouraged the need to build competence in knowledge for ocean governance in different places.

Prof. Raymond Atuguba, Dean, School of Law, earlier welcomed the Norwegian delegation and expressed his hope in the growth of the project under the leadership of Prof. Amfo.

Prof. Amfo presented a gift of appreciation to the Norwegian delegation, after which group pictures were taken.

The ceremony was witnessed

by Prof. Felix Ankomah Asante, Pro Vice-Chancellor, Research, Innovation and Development; Prof. Daniel Ofori, Acting ProVice-Chancellor, Academic and Student Affairs and Provost, College of Humanities; Mrs. Emelia Agyei-Mensah, Registrar; Prof. Boateng Onwona Agyemang, Provost, College of Basic and Applied Sciences; Prof Augustine Ocloo, Dean, School of Biological Sciences; Prof. Francis Nunoo, Head of Department, Department of Marine and Fisheries Sciences.

The Norwegian delegation included Her Excellency Ms. Ingrid Mollestad, Norwegian Ambassador to Ghana; Ms. Gunnhild Eriksen, Senior Advisor, Norwegian Ministry of Foreign Affairs; Elisabeth SchwabeHansen, Deputy Director, Section for Horn of Africa and West Africa; Huyen Tran Titti Ho Brekken, Senior Adviser, NORAD; Anders Markus Aabo, Senior Adviser, NORAD; Jorun Nossum, Assistant Director, Section for Knowledge Programs; Martha Haukaas, Director, Department for Communication, NORAD; Elisabeth Amb Onsum, Editorin-Chief, Bistandsakuelt; Espen Røst, Journalist, Bistandsakuelt; Kyrre Holm, Deputy Head of Mission; Robert Hovde, Counsellor, Commercial Affairs; Victoria Sundvor, Second Secretary, Political Adviser and Mia Kamarainen, Adviser.

African Development Fund supports Ghana’s renewable energy climate change effects. In dev’t with US$27.39m Continued from cover the development of renewable energy investments in the mini grid and net metering space.

The project involves the development of 35 mini grids, standalone solar photovoltaic systems in 400 schools, 200 units in healthcare centers and 100 units for community energy services centers in the Volta Lake region. It will also deploy up to 12,000 units of roof-mounted net-metered solar photovoltaic systems for public institutions, small and mediumsized enterprises and selected households.

The project has leveraged cofinancing from the Scaling Up Renewable Energy Program, a funding window of the Climate Investment Funds, and the Swiss State Secretariat for Economic Affairs, amounting to $28.49

million and $13.30 million, respectively.

The Ghana Mini Grid and Solar Photovoltaic Net Metering is expected to have an annual electricity output of renewable energy estimated at 111,361MWh, corresponding to an installed capacity of 67.5MW. The project will mitigate greenhouse emissions of 0.7795 million tons of CO2 equivalent per year and create up to 2,865 jobs during construction, of which 30% will target women and youth.

Marie-Laure Akin-Olugbade, the African Development Bank Group’s Director General for West Africa, said: “The Bank Group’s support is aligned to Ghana’s development priorities that aim to promote and develop the country’s rich renewable energy resources for sustainable economic growth, improved social life and reduced adverse

addition, the post Covid-19 era has highlighted the importance of reliable energy services.”

Eyerusalem Fasika, the African Development Bank’s Country Manager for Ghana, said: “The project will support Ghana’s Covid-19 Alleviation and Revitalization of Enterprises Support (Ghana CARES) program, which identifies the energy sector as an enabler of economic transformation. It has the potential to create jobs, fundamentally expand access to businesses and bring prosperity to Ghanaians.”

Daniel Schroth, Acting Director of the Renewable Energy and Energy Efficiency Department, noted that the West African nation of Ghana has one of the highest electrification rates in Africa. ” The approval of the grant facility reflects a strong commitment of the African Development Bank to support

Ghana’s objective to achieve universal access to electricity and its 10% renewable energy target by 2030,” he said. “This project is a good example of the Bank Group’s ability to leverage financing from climate investment funds and donor partners by supporting electrification of Ghana’s remaining 15% located in the island communities.”

The African Development Fund is the Bank Group’s concessional funding arm. The African Development Bank has been an implementing entity of the Climate Investment Funds since 2010.

12

Technology

WEDNESDAY FEBRUARY 2, 2022

Big tech must stop hiding

By Mariana Mazzucato, Ilan Strauss

I

n 2021, Alphabet (Google’s parent), Amazon, Apple, Meta (Facebook’s new alias), and Microsoft were among the world’s largest companies in terms of revenue and profit. These five companies alone increased their market capitalization by an amount greater than Italy’s GDP ($2.5 trillion vs. $2.1 trillion). Big Tech now accounts for nearly a quarter of the S&P 500’s index and a quarter of research and development spending by US publicly listed non-financial firms.

Amazon is the world’s fifth-largest employer, and it is still growing.

What can be done about these firms’ growing market dominance? For starters, the situation demands a more proactive regulatory agenda, so that public authorities are not constantly playing catch-up.

What we have now is a case-bycase regulatory “war of attrition,” frequently waged by litigation against past business practices.

After a lengthy appeals process, the result almost always amounts to “too little, too late.”

The problem is exacerbated by a lack of disaggregated financial disclosures from the Big Tech companies. Their aggregated disclosures no longer come close to explaining how they operate.

Investors and regulators need to know more. How many people use WhatsApp each month, and for how many hours? What is the Apple App Store’s profit margin?

What is Microsoft Azure’s share of the cloud computing market?

Yes, sometimes one can find approximate answers to such questions on Google Search, but only when they have been revealed by a company whistleblower, an unredacted court document, or a private estimate from a website traffic company. The answers certainly cannot be found in Big Tech’s public 10-Ks, the annual financial performance reports that all US publicly listed companies must file with the Securities and Exchange Commission.

These omissions follow from two features of Big Tech’s powerful platform business model. First, a platform’s utility is often underpinned by “free” or subsidized products that drive user adoption. Even though these products are eventually monetized – either indirectly through advertising or directly through subscriptions, sales, and fees – they do not have to be

included in the 10-K as long as they remain largely “free” to the consumer.

Consider Alphabet, which owns at least nine products – including YouTube, Android, Chrome, Gmail, and Google Maps – that have more than one billion active monthly users. Although each product dominates the global market in its sector, Alphabet’s 10-K financial disclosures list only an aggregate “advertising” category and a few limited financial metrics for YouTube and Google Cloud. This opacity has helped the company avoid regulatory scrutiny while establishing a global foothold in key digital markets.

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While Big Tech firms sometimes provide monthly active user counts in their earnings calls to investors, these figures are not disclosed systematically in their annual 10-Ks, where the legal onus is higher. A proper disclosure of user “operating metrics” is sorely needed, because these firms’ market domination (and related abuses of power) is increasingly of a non-price nature. Central to this dominance is a large user base.

A large user base in one product, such as MS Word, can allow a firm to extend its dominance to other markets through bundling (think of MS Teams). Big Tech companies’ market power increasingly lies in the “ecosystems” they control, rather than in a single product.

That power allows them to lock in

users, squeeze out competitors, and build data fortresses.

The second feature of Big Tech’s business model that aids financial opacity is product diversification.

By diversifying their product offerings – often through new product bundles – tech platforms can keep users within their ecosystems, generating more sales. Yet these increasingly diffuse sources of profits are rarely disclosed in their 10-Ks. Although the current “segment reporting” rules were designed to ensure that large, diversified conglomerates release disaggregated financial information, in practice the rules give companies wide discretion to define what counts as an “operating segment.” Apple, for example, defines its segments not by product but by geography, so it is not required to disclose App Store profits.

This flexibility allows Big Tech companies to hide the financials of some of their leading products, even those that technically exceed the reporting threshold because they account for 10% or more of total assets, revenues, or profit/loss. Big Tech firms have become so large that even enormous product segments with sales exceeding $20 billion can be classified in such a way that they do not meet the threshold at all. Hence, the full scale of Amazon Web Services appears to have been kept hidden from competitors for longer than should have been permitted.

The absence of detailed financial and operating information means that regulators tasked with identifying possible abuses of market power are effectively starting from scratch with each case.

To determine a firm’s power, regulators must be able to analyze the relationship between prices, costs, and capital outlays; but these factors are obscured when financials are aggregated across products. Value-creating

activities are routinely blended with zero-sum value-extractive activities. And even though Big Tech companies have used “free” products to become gatekeepers to entire markets, they still are required to disclose only profits and losses.

In a new report, co-authored with Tim O’Reilly and Josh RyanCollins, we argue that the SEC’s 10-K disclosures need urgent updating.

Regulators must go beyond “profit and loss” reporting to require specific nonfinancial operating disclosures on all products that meet a certain threshold of monthly active users. This rule would require disaggregated operating disclosures on products like Alphabet’s Google Search, YouTube, Chrome, and Android, or Meta’s Facebook, Instagram, WhatsApp, and Messenger. The firms already use operating data on users internally to assess product performance, so they would not be burdened by mandatory disclosure in their annual 10-Ks. Moreover, the segment reporting rules need to be given “teeth,” and they need to scale with firm size to ensure the release of “hidden data” from consolidated financial statements. To tackle both issues, companies should be required to disclose detailed financials on any product with at least $5 billion in annual revenues. To put that amount into context, it would trigger disclosure of financial information on Apple’s AirPods and Microsoft’s Azure.

Just as environmental, social, and governance reporting is becoming essential to help navigate climate change, enhanced 10-K reporting is necessary to reveal the nature and extent of Big Tech’s market dominance. Only then can we see if these giants owe their continued growth to value creation or to value extraction.

13

Global Economy

WEDNESDAY FEBRUARY 2, 2022

The end of free-lunch economics

By Raghuram G. Rajan

S

mart economic policymaking invariably requires trading off some pain today for greater future gains. But this is a difficult proposition politically, especially in democracies. It is always easier for elected leaders to indulge their constituents immediately, on the hope that the bill will not arrive while they are still in office. Moreover, those who bear the pain caused by a policy are not necessarily those who will gain from it.

That is why today’s more advanced economies created mechanisms that allow them to make hard choices when necessary. Chief among these are independent central banks and mandated limits on budget deficits. Importantly, political parties reached a consensus to establish and back these mechanisms irrespective of their own immediate political priorities. One reason why many emerging markets have swung from crisis to crisis is that they failed to achieve such consensus.

But recent history shows that developed economies, too, are becoming less tolerant of pain, perhaps because their own political consensus has eroded.

Financial markets have become volatile once again, owing to fears that the US Federal Reserve will have to tighten its monetary policy significantly to control inflation.

But many investors still hope that the Fed will go easy if asset prices start to fall substantially. If the Fed proves them right, it will become that much harder to normalize financial conditions in the future.

Investors’ hope that the Fed will prolong the party is not baseless.

In late 1996, Fed Chair Alan Greenspan warned of financial markets’ “irrational exuberance.”

But the markets shrugged off the warning and were proved correct.

Perhaps chastened by the harsh political reaction to Greenspan’s speech, the Fed did nothing. And when the stock market eventually crashed in 2000, the Fed cut rates, ensuring that the recession was mild.

In a testimony to the congressional Joint Economic Committee the previous year, Greenspan argued that while the Fed could not prevent “the inevitable economic hangover” from an asset-price boom, it could “mitigate the fallout when it occurs and, hopefully, ease the transition to the next expansion.”

The Fed thus assured traders and bankers that if they collectively

gambled on similar assets, it would not limit the upside, but it would limit the downside if their bets turned bad. Subsequent Fed interventions have entrenched such beliefs, making it even harder for the Fed to rein in financial markets with modest moves. And now that much more tightening and consequent pain may be needed, a consensus in favor of it might be harder to achieve.

Fiscal policy is also guilty of peddling supposedly painless economic measures. Most would agree that the pandemic created a need for targeted spending (through extended, generous unemployment benefits, for example) to shield the hardesthit households. But, in the event, the spending was anything but targeted. The US Congress passed multi-trillion-dollar bills offering something for everyone.

The Paycheck Protection Program (PPP), for example, provided $800 billion in grants (effectively) for small businesses across the board. A new study from MIT’s David Autor and his colleagues estimates that the program helped preserve 2-3 million job-years of employment over 14 months, at a stupendous cost of $170,000-$257,000 per job-year. Worse, only 23-34% of this money went directly to workers who would otherwise have lost their jobs. The balance went to creditors, business owners, and shareholders. All told, an estimated three-quarters of PPP benefits went to the top one-fifth of earners.

Of course, the program may have saved some firms that otherwise would have collapsed.

But at what cost? While capitalists anticipate profits, they also sign up for possible failure. Moreover, many small businesses are tiny operations without much organizational capital. If a small bakery had to close, the economic fallout would have been mitigated by the enhanced unemployment insurance. And if it had a loyal clientele, it could restart after the pandemic, perhaps with a little help from a bank.

The standard line is that the unconstrained spending was driven by a sense that unprecedented times called for unprecedented measures. In fact, it was the response to the 2008 global financial crisis that broke the previous consensus for more prudent policies. Lasting public resentment that Wall Street had been helped more than Main Street motivated politicians in both major parties to spend with abandon when the pandemic hit. But targeted unemployment benefits were associated with the Democrats, leaving Republicans seeking wins for their own constituencies. Who better to support than small businesses?

While political fractures were driving up untargeted spending, budget hawks were nowhere to be found: Their voices had been steadily drowned out by economists. In addition to the cranks who show up periodically to advocate ostensibly free lunches through money-financed spending, a growing chorus of mainstream economists had been arguing that prevailing low interest rates gave developed countries significantly more room to expand fiscal deficits.

Politicians who were eager to

justify their policies ignored these economists’ caveats – that spending had to be sensible, and that interest rates had to stay low. Only the headline message mattered, and anyone suggesting otherwise was dismissed as a hair-shirt fanatic.

Historically, it has been the Fed’s job to take away the monetary punch bowl before the party gets frenzied, and Congress’s job to be prudent about fiscal deficits and debt. But the Fed’s desire to spare the market from pain has driven more risk-taking, and reinforced expectations of further interventions. The Fed’s actions have also added to the pressure on Congress to do its bit for Main Street, which in turn has led to inflation and a belief that the Fed will back off from raising rates.

All of this makes a return to the previous consensus more difficult.

When the Fed does raise rates significantly, the government’s costs of servicing the debt from past spending will limit future spending, including on policies to reduce inequality (which has fueled political fragmentation), combat future emergencies, and tackle climate change.

Every economy has a limited reservoir of policy credibility and resources, which are best used to mitigate genuine economic distress, not to shield those who can bear some pain. If everyone wants a free lunch, the bill eventually will be paid by those least able to afford it. Emergingmarket economies have had to learn this the hard way.

Developed countries may have to learn it again.

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WEDNESDAY FEBRUARY 2, 2022

15

Feature

WEDNESDAY FEBRUARY 2, 2022

Tapping the sun to increase rural incomes in Ghana

“

I know the sun has power, but I never imagined it could change my life for good,” says Hawa Adams, a vegetable farmer.

Hawa lives with her husband and eight children in Tamalgu, a farming community in northern Ghana.

This region is much drier than the south, receiving an average annual rainfall of 750mm to 1,050mm. Agriculture is traditionally rain-fed and serves as the primary livelihood of more than 80 percent of the population.

In most parts of Ghana, climate change has affected farmers’ ability to predict the rains, which negatively affects planting and harvesting. Without additional water sources for irrigation, farming usually lasts only one season. This trend, together with the unfavourable climatic conditions, adversely impacts productivity, reduces farmers’ incomes and plunges many into poverty.

“Tilling in my sweat did little to improve my livelihood, but I had no option”, says Hawa.

“Providing three square meals for my family was a luxury.

Although my husband supported me, I still struggled to support the education of my children in

school."

Through a solar-powered irrigation project supported by the Energy Commission of Ghana and UNDP, smallholder farmers in the four communities of Tamalgu, Nakpanduri, Datoyili and Fooshegu can now irrigate their farm fields regularly.

Launched in October 2014, the programme has installed a solar-powered irrigation pump in each of the four communities.

Altogether, the pumps are capable of watering up to 15 hectares of land, while the solar panels have a total capacity of 22.5 kilowatts and are capable of delivering up to 1 million litres of water each day.

The initiative was implemented

by NewEnergy, a local NGO that seeks to make sustainable energy accessible and affordable to smallholder farmers.

“Our aim is to facilitate a yearround farming at the selected communities by making water available,” says Mahama Amadu, Chairman of NewEnergy.

Hawa is one of 78 farmers who have benefitted from the intervention so far. “Before the project, I spent an average of US $10 [a fifth of the monthly minimum wage in Ghana] on fuel

each month to power a rented pump to irrigate my field. At a point, I could not sustain it due to the high running cost,” she says.

Irrigating fields through fuelpowered pumps also required connecting several pieces of rented water hoses. Assembling and disassembling the hoses daily is tedious, and over time the hoses suffer wear and tear, adding to maintenance costs.

With the installation of the solar powered pumps, such costs have been minimized.

Now, each farmer contributes an average of $2.5 monthly toward a cooperative fund to ensure proper maintenance of the equipment and maintain capital for future investments.

“The constant supply of water from the solar-powered pumps offers me the prospect to harvest at least three times each year, instead of one,” says Hawa.

“This means increased income, food and improved nutrition for my household. With this, I can support my children’s education.”

With assistance from NewEnergy, the farmers have also established good relationships with reputable purchasers who help them to sell the farm produce.

Besides the traditional flood irrigation techniques, the project also introduced, on a pilot basis, a drip irrigation demonstration kit in each of the four communities.

This technology utilizes water more efficiently and makes it possible for more farmers to access the same solar PV system and expand the irrigation area.

The Government of Ghana endorses the initiative. “I am highly impressed with the technology in use here, as well as the enthusiasm and commitment of the farmers,” says Dr Alhassan Yakubu, Deputy Minister of Agriculture.

Ghana was one of the first countries to embark on the Sustainable Energy for All (SE4ALL) initiative, launching a SE4ALL Action Plan in June 2012.

The Plan identifies key barriers and proposes critical actions and commitments to address needs in the energy sector. It is expected that the solar-powered irrigation pumps will be sustained, replicated and scaled up to provide more self-employment opportunities for youth who would otherwise be forced to move from rural to urban areas in search of work.

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WEDNESDAY FEBRUARY 2, 2022

17

Comment/Analysis

WEDNESDAY FEBRUARY 2, 2022

2021 tax news from the lens of a tax consultant

By Abeku Gyan-Quansah

I

n our previous edition, we recapped tax measures put in place within the first two quarters of 2021. In this edition, we will highlight some of the tax issues that happened in the third and final quarters of 2021. Quarter 3 ( July, August, September) In July, the groundbreaking commitment to the 15% minimum effective tax rate was made by 130 countries out of the 139 members of the OECD Inclusive Framework.

Although Ghana, regrettably, is not a member of the OECD Inclusive Framework, the commitment goes without saying that the global tax stage has several interesting developments coming up.

Around mid-month, the court ruled in the case between Agility Distribution Parks Ghana Ltd and the Commissioner-General of the GRA that specific rules on VAT credits and refunds in the VAT law override general laws on refund under the Revenue Administration law.

In the month of August, the GRA issued a memo to direct its staff to reject business expenses in excess of GH¢2,000 when verifying income tax unless the taxpayer produces supporting VAT invoices. This directive was scheduled to take effect from October 2021.

Towards the end of the third quarter, particularly in September, the first deputy governor of the Bank of Ghana made a troubling revelation that only 2 million taxpayers out of the estimated 30 million population fulfill their (income) tax obligations.

So, Ghana may not be able to

fund its development goals with such low compliance levels. Other news for the month included the decision by the World Bank Group to discontinue the Doing Business Report over some ethical issues.

The Ghana Chamber of Telecommunications urged the Government not to consider the possibility of taxing mobile money in the short to medium term, in response to a proposal which had been communicated by the Government earlier in the year.

Quarter 4 (October, November, December) The month of October saw the release of three Practice Notes by the GRA. The focus of the Practice Notes included the definition of civil engineering public works, details on supplies to and from free zone areas, and clarification on VAT on imported goods that were exempt from import VAT. Typical of how taxpayers feel about the obligatory security deposit required in the tax objection process in Ghana, it was not surprising for a High Court to hear the case between African Mining Service (AMS) and The Commissioner-General of the GRA. This case added to Ghana’s jurisprudence in the area of tax administration, mainly around our tax objection procedures and the exercise of GRA’s discretion in approving waiver requests for objection Security Deposits.

In November, SSNIT issued a communique requiring employers to submit the Ghana card numbers of employees as part of the information submitted for the monthly contributions.

The Minister of Finance presented the 2022 National Budget, themed “Building a

Sustainable Entrepreneurial Nation: Fiscal Consolidation and Job Creation”, to Parliament.

Among other tax policies, the Budget proposed to reduce the withholding tax (“WHT”) rate for the purchase of unprocessed gold from small-scale gold miners from 3% to 1.5%; and to increase the turnover limit for the Modified Taxation System from GH¢200,000 to GH¢500,000.

Other proposals included: extension of the zero-rating of locally manufactured textiles to 31 December 2023; introduction of 1.75% electronic transfer levy; review of benchmark (discount) policy for imported vehicles and selected general goods; restriction of the VAT Flat Rate Scheme (“VFRS”) to small retailers only; establishment of the AfCFTA Customs Procedures Code (“CPC”); increase sensitisation of the ECOWAS Common External Tariff (“CET”) and abolishment of Road Tolls.

The Budget also proposed some administrative and other revenue measures such as the passage of the Tax Exemptions Bill into law; intensification of Revenue Assurance and Compliance Enforcement (“RACE”) initiative; automatic review of fees and charges; implementation of a common platform for the administration of property rate; and taxation of high-net-worth individuals.

The Tax Exemptions Bill was laid before Parliament for their consideration. The GRA also reminded the public that gaming and betting services attract VAT and its allied levies such as the health levy. Towards the end of the year in December, we received news that Ghana had

signed a double tax treaty with Luxembourg.

The National Pensions (Amendment) Bill, 2021 which excludes the Police Service, the Immigration Service, the Prisons Service, the Security and Intelligence Agencies and the Ghana National Fire Service from the unification of pensions was laid before Parliament.

The Bill for the 1.75% electronic transfer levy which was proposed in the 2022 National Budget was also laid before Parliament. Then on the eve of the new year the Government made public some of the laws that had been passed and subsequently consented to by the President.

These laws include amendment laws for Income Tax, VAT and waiver of penalty and interest (“PIWA”). The Income Tax and VAT laws were amended to give effect to some of the tax proposals made to Parliament in the 2022 Budget.

The amendment to the PIWA was however not mentioned in the 2022 Budget Statement.

The PIWA amendment provides an extension of the application period for a waiver of penalty and interest and payment of outstanding principal tax to 30 June 2022.

The GRA issued a circular communicating that the Customs Division would discontinue the 30% discount given on the Home Delivery Value (“HDV”) of imported vehicles and the 50% discount given on other selected imports effective 4 January 2022.

As the clock chimed the end of 2021, the exemption of gains from realisation of securities on the Ghana Stock Exchange expired with the year.

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WEDNESDAY FEBRUARY 2, 2022

19

Interview

WEDNESDAY FEBRUARY 2, 2022

Russian policy failing Africa’s sustainable development

By Kester Kenn Klomegah

Z

imbabwe’s Ambassador to Russia, Brigadier General (rtd) Nicholas Mike Sango, who has been in his post since July 2015, was one of the African envoys to attend a special meeting with Russian legislators to exchange views on common problems, common issues for the African continent and the Russian Federation.

According to his biographical records, he served in the Zimbabwe Liberation War as a member of the ZANLA from 1975 to 1980, which led to the country’s attainment of independence and multiracial democracy. Nicholas Sango previously held various high-level posts such as military adviser in Zimbabwe’s Permanent Mission to the United Nations, and as international instructor in the Southern African Development Community (SADC).

While Russia has traditional ties with Africa, its economic footprints are not growing as expected. It has however attempting to transform the much boasted political relations into a more comprehensive and broad economic cooperation.

Russian legislators always acknowledge the enormous potentials and advantages Russia has, and at the same are puzzled by the comparatively high level of economic influence by other foreign players in Africa.

The Russian legislators are eager to know, for instance, what needs to be done to bring up a substantial improvement in collaboration between Russia and Africa, which areas of cooperation are of most interest to Russian businesses and African nations, and so forth. That meeting generally was organized to share views and opinions, deepen understanding of current developments and the existing challenges and to explore new pathways into the continent. That was why the interaction became necessary between legislators and African ambassadors in the Russian Federation.

After the State Duma meeting, Kester Kenn Klomegah fixed this interview with Ambassador Nicholas Sango who willingly shared his views and thoughts on a few current pertinent issues connecting Russia and Africa.

Below are the interview excerpts: Q: Aside from the interparliamentary conference, what important issues came up at the meeting with Russian legislators held recently in the State Duma?

A: The meeting of the Chairman of the State Duma (lower chamber of Russian legislators) and African Ambassadors in October was a welcome first initiative towards the convening of the RussiaAfrica Parliamentary Forum.

This initiative was informed by the recognition that despite the geographical locations of the two institutions. The disparity in the level of development, the diversity of cultures and aspirations of the peoples of the two regions, there is growing realization that Africa is an important partner in the “emerging and sustainable polycentric architecture of the world order” as Foreign Minister Sergey Lavrov has aptly asserted.

But in fact, Africa’s critical mass can only be ignored at great risk therefore.

Q: State Duma proposes to move away from intentions to concrete steps. Does it imply that Russia has unfulfilled bilateral agreements, promises and pledges in Africa? What are your objective views about this?

A: For a long time, Russia’s foreign policy on Africa has failed to pronounce itself in practical terms as evidenced by the countable forays into Africa

by Russian officials. The RussiaAfrica Parliamentary Forum can only achieve the desired objectives if anchored on a solid policy framework.

Q: What would African leaders prefer: the development of political relations or expansion of genuine economic partnership?

A: While Russia and Africa have common positions on the global platform, the need to recognize and appreciate the aspirations

of the common man cannot be overstated. Africa desires economic upliftment, human security in the form of education, health, shelter as well as security from transnational terrorism among many challenges afflicting Africa. The Russian Federation has the capacity and ability to assist Africa overcome these challenges leveraging on Africa’s vast resources.

Despite the historical social and political relations, the Russian Federation has shied away from economic cooperation with Africa, making forays into the few countries that she has engaged in the last few years. African leaders hold Russia in high esteem as evidenced by the large number of African embassies in Moscow.

Russia has no colonial legacy in Africa.

Unfortunately, the former colonial masters continue to exploit African resources because, despite the “Look East Policy” adopted by Africa, Russia has not responded in the manner expected by Africa, as has China, India and South Korea, to name a few. Africa’s expectation is that Russia, while largely in the extractive industry, will steadily transfer technologies for local processing of raw materials as a catalyst for Africa’s development.

Q: At least, over the past decade Russia has signed various bilateral agreements and MoUs nearly with all African countries.

Do you think there have been challenges in implementing these agreements?

A: The Russian Federation has signed bilateral agreements with a number of African countries.

These agreements, of necessity require strong government support anchored on a social

policy that promotes a two-way beneficiation. African products other than from a few north African countries and South Africa find their way into the Russian market. As a result, trade figures between Russia and Africa are anchored on selective countries even though a number of bilateral agreements with other African countries are in place.

Q: State Duma talk about Russian media presence in Africa. What steps can we take to raise African media representation in the Russian Federation?

A: The Sochi International Olympics and the FIFA international football extravaganza surprised many Africans on the level of development of the Federation.

There is a dearth of information about the country. Russia-Africa issues are reported by third parties and often not in good light. Is this not a moment that Russia has coverage on Africa by being permanently present in the continent? Even the strongest foreign policies, if not sold out by the media, will definitely not succeed.

Indeed, Africa’s media should equally find space to operate in Russia. Because of limited resources, Russia should equally make it easier for African journalists to operate on her territory. The RussiaAfrica Parliamentary Forum as a precursor to the Russia-Africa Forum should lay the necessary foundation for deeper and holistic Russia-Africa political, cultural and economic cooperation for mutual benefit of the peoples of the two friendly institutions. *

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BUSINESS24.COM.GH WEDNESDAY FEBRUARY 2, 2022

NO. B24 / 300 | NEWS FOR BUSINESS LEADERS

MONDAY MAY 3, 2021

WEDNESDAY FEBRUARY 2, 2022

Hisense grabs 2 top awards L eading electronic company Hisense Ghana Limited ended 2021 on a very high note picking two top awards at the 3rd Corporate Ghana Awards.

The good works of the multiple award-winning company earned Hisense the Electronic Company of the Year and the Electronic brand of the Year Awards at the prestigious gala event in Accra recently.

“This Award was in recognition of your great contribution to Ghana’s development. You have made giant strides in contribution to your section.

“On this day December 23, 2021, we confer on you the 2021 Electronic brand of the year as well as the Electronic Company of the year awards,” citations accompanying the honours stated.

According to the highly dedicated management of Hisense, the double honour was in recognition of the company’s hard work in the year under

review.

“Indeed, this will go a long way to encourage us to continue with our good works,” a release by

Hisense Ghana Limited stated.

The release added “We at Hisense are honored by the recognition, we promise to go the

extra mile in the discharge of our duties in 2022 and beyond. We promise to give our numerous customers our best shots.”

GCB Bank supports Appiatse victims with GH¢100,000 G CB Bank PLC has supported victims of the Appiatse explosion with a GH¢100,000 donation.

The bank in a statement said

Published by Business24 Ltd. Nii Asoyii Street, Mempeasem East Legon-Accra, Ghana.

it will work with the necessary state institutions and the Ghana Association of Bankers to provide a collective support to the town.

"We join hands with the people

Tel: 030 296 5297 | 030 296 5315 Editor: Benson Afful editor@business24.com.gh +233 545 516 133

of Ghana, in the spirit of solidarity and patriotism, in commiserating with the good people of Appiatse.

GCB Bank has made available an amount of GH¢100,000 to assist

business24.com.gh

in bringing some comfort to the people of this great town," the Managing Director of GCB, Mr Kofi Adomakoh said.

He added, "Nothing can compensate for the loss of lives, but this gesture will help to mend what is broken, contribute to a smooth recovery and ensure the lives and livelihoods of the people of Appiatse are restored. We are ready to support in anyway we can."

On Thursday January 20, 2022, an explosion occurred along the Tarkwa-Bogoso-Ayamfuri road after a truck transporting mining explosives was involved in a crash.

The explosion killed 14 persons and injured 179 and displaced hundreds at Appiatse.