Business24 Newspaper 19th January, 2022

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WEDNESDAY JANUARY 19, 2022

BUSINESS24.COM.GH

Wednesday January 19, 2022

WomanRising urges investors to support startups

NO. B24 / 294 | News for Business Leaders

Why did almost nobody see inflation coming?

See page 5

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Only trained and ethical professionals must handle procurement, says GIPS boss

By Patrick Paintsil p_paintsil@hotmail.com

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o tackle the alarming rise in financial irregularities, chief executives and heads of both state and private institutions must ensure that only fit and proper hands are recruited to run the procurement functions of their organisations, Collins Agyemang Sarpong, President of the Ghana Institute of Procurement and Supply (GIPS), has advocated.

“No square pegs in round holes; non-procurement professionals should stay away from heading and working in the procurement department of an organisation,” he told journalists in an interview.

“Most of them [without the

Covid vaccine: MPs to receive booster jabs

By Eugene Davis ugendavis@gmail.com

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ovid-19 vaccine booster jabs will be offered to "all Members of Parliament" before they commence parliamentary business next Tuesday, January 25, according to the Speaker of Parliament, Alban Kinsford

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BoG sacks two employees over 'fake certificates'

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Ursula urges crossborder response to surging cybercrimes

By Patrick Paintsil p_paintsil@hotmail.com

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he Bank of Ghana (BoG) has confirmed the dismissal of two employees who presented "fake certificates" to gain employment at the central bank.

BoG said reports suggesting that 90 percent of recently recruited staff were found to have presented fake certificates was

inister for Communication and Digitalisation, Ursula Owusu-Ekuful, says it is high time African states, institutions and civil society work to demonstrate their commitment to cybersecurity with the shared objective of

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Editorial / News

WEDNESDAY JANUARY 19, 2022

Editorial

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Organisations must court the right expertise to handle procurement

ver the past few years, there has been a number of initiatives to improve the procurement processes in a bid to safeguard the public purse but it appears those actions have done little to prevent the rampant instances of severe infractions captured in the Auditor-General’s report yearly.

It appears the measures put in place have not been successful in protecting the public purse from abuse stemming from procurement breaches.

This ages-long canker of financial malfeasances in the public sector and other corporate organisations persist because procurement units of these institutions are not given the needed attention and scrutiny.

Mostly seen as a relegated function, chief executives and figure heads of most state institutions do not attach seriousness to the recruitment, resourcing and running of the procurement function of their organisations.

In so doing, the function that controls the chunk of its expenses is indirectly given little or no supervision thereby offering the untrained or unethical practitioner the opportunity to cause financial damage to the company.

Procurement and supply, whether in a private or public organisation, must be viewed as a strategic function which must be well managed to help achieve higher profitability and efficient

use of financial resources.

Nowadays, procurement and inventory management are now a strategic function, which should not be left in the hands of people without the requisite expertise and experience.

These concerns have been echoed by the astute procurement practitioner, Collins Agyeman Sarpong, president of the Ghana Institute of Procurement and Supply (GIPS).

It is time for both public and private firms to place the right value on procurement function if they want to be sustainable and profitable and that can only happen when trained and ethical people are recruited to run that aspect of the business.

Only trained and ethical professionals must handle procurement, says GIPS boss Continued from cover

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requisite expertise] become overwhelmed when faced with complex and technical procurement and contracting for goods, works and services,” he added.

According to Mr. Sarpong, procurement and supply, whether in a private or public organisation, must be viewed as a strategic function which must be well managed to help achieve higher profitability and efficient use of financial resources.

“Is it not strange for organisations to lowly rank the managers of the function that controls about 50 to 70 percent of organisations’ revenues or expenditure?” he quizzed.

The GIPS boss asserted that procurement and inventory management are now a strategic function, which should not be left in the hands of people without the requisite expertise and experience.

He therefore called for strong academia-industry collaboration to ensure a broad-based education for procurement and supply students at both the graduate and undergraduate levels.

He further disclosed that the draft Procurement Practising Bill—a bill to regulate and license the practice of procurement in the country—is currently undergoing

revisions and stakeholder reviews before heading to Parliament in the first quarter of this year.

GIPS boss picks top award Meanwhile, the astute procurement practitioner has been recognised with the “Outstanding Professional Achievement in the Field of Marketing and Procurement” award at the Centenary Dinner and Awards Night organised by the Ghana Chapter of the University of Leicester (UK) Alumni Association on the theme “The Future is Ours to Change.

Celebration of 100 Years of Change’’.

The citation accompanying his award read: “This award is in recognition of your remarkable achievements, complemented by a history of outstanding

contribution to the field of marketing and procurement throughout your career.”

“It feels good to have a totally different group of intellectuals to look at one of their own as an alumnus of University Leicester, UK, practising in an entirely different field and recognise the strategic contributions this person is giving to the growth and development of our profession and country,” Mr. Sarpong said of the recognition.

He encouraged procurement and supply practitioners to be resolute in their daily dealings to do the right things and not succumb to pressures that would lead them to engage in unethical practices and activities which tarnish the image of the procurement profession.

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News

WEDNESDAY JANUARY 19, 2022

BoG sacks two employees over 'fake certificates' Continued from cover "not true."

It said, "the statement circulating on social media is twisted to misinform the general public. It is not true that 90 percent of recently recruited staff were found to have presented fake certificates."

Rather, "the incident being referred to involves two (2) members of staff whose appointments were terminated for providing fake certificates as part of their employment documentation."

"As part of due diligence processes during and post recruitment, those found to have presented forged documentation

(including professional

academic and certificates)

are either dropped from the recruitment process or their

services terminated if already onboarded and on probation.

Covid vaccine: MPs to receive booster jabs Continued from cover Sumana Bagbin.

The jabs will first be given to MPs and then to officers of the Parliamentary Service who were vaccinated at least nine months

ago.

A letter from the Speaker said the initiative is in response to rising infections from the Omicron variant and to evidence that the protection offered by the vaccines fades.

As of 13 January, 2022, a total of 9,004,225 vaccine doses had been administered in the country.

According to the World Health Organisation (WHO), after a six-week surge, Africa’s

fourth pandemic wave driven primarily by the Omicron variant is flattening, marking the shortest-lived surge to date in the continent where cumulative cases have now exceeded 10 million.

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WEDNESDAY JANUARY 19, 2022

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News

WEDNESDAY JANUARY 19, 2022

WomanRising urges investors to support startups

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ANOE Woman Rising Hub in collaboration with Ghana Tech Lab has encouraged local startup culture within the local ecosystem to promote entrepreneurship among the youth in the country.

The Local Startup summit themed, “Mobile Application for Sustainable Business Development and Job Creation” aimed at providing a platform for startup founders to pitch their innovative ideas to local investors and business leaders.

The Project Lead for TANOE Woman Rising, Eugenia Korkor Martey, in her welcome address indicated that “The Local Startup Summit aims to promote and celebrate the startup culture within the local ecosystem and also to encourage entrepreneurship among the youth.”

She added that the summit also aims to create an easy access to funding and business support for the early-stage startups.

“The local startup summit creates a conducive platform for investors, innovators and entrepreneurs to converge at one place to share ideas, experiences and explore areas of mutual

interest and collaboration for a thriving digital economy,” she said.

The mobile application development and use in Ghana has seen significant increase in solving sustainable issues in businesses following proliferation of internet and the STEM industry.

Many top startups in Ghana, specifically, Accra are technologically inspired to provide solutions to their community that prioritizes convenience, timely delivery and above all sustainable solutions to their needs and wants.

Ms Eugenia believes there are also pertinent community issues in Accra East that could be solved with the adoption of mobile application.

“I live with the lifestyle of residence in Accra East coupled with an empathy trip, solutions can be provided to this busy community such as mobile apps to book their salon visits, find affordable apartments, buy books online and even order for your favourite meal with your own recipe and have it delivered on time.”

She reiterated that the

opportunities are enormous such that mobile application will not only solve the challenges in Accra East but will also provide employment to the growing youth population in the community.

The business pitch is an opportunity for trainees to present their solutions to the challenges identified and to encourage execution of these projects for sustainable development and job creation.

“The mobile application

industry has experience graceful periods in providing sustainable solutions in Ghana. We believe these solutions should be extended to everyone in our communities who have needs and wants of which these apps can solve, she then urge all investors to come on board to support these startups to create job for the youth and reduce the high rate of youth bulge in the country” she concluded.

Nestlé recalls all batches of affected Ideal Milk and Carnation Tea Creamer

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estlé Ghana has temporarily taken off the shelves all the affected batches of its Ideal Evaporated Milk and Carnation Tea Creamer brands as a measure of reassurance to its customers regarding the quality of the two

products.

“The quality and safety of our products is our number one priority. To ensure our consumers have the experience they deserve, Nestlé has taken the decision to take all Ideal Evaporated Milk and Carnation Tea Creamer off the

shelves temporarily.

This difficult step is to provide full reassurance to our consumers on the quality of our products,” the company said in a release to the media.

“We have observed with great concern that some consumers

feel let down by the quality of some of our evaporated milks.

We regret this very much,” the statement added.

The recalled batches of the Ideal Evaporated Milk, as requested by the Food and Drugs Authority (FDA), are: 12651489, 12951489, 12961489, 13001489, 13031489, 13131489, 13161489, 13171489, 13341489, and 13351489.

That of the Carnation Tea Creamer are: 12901480, 12911489, 12931489, 12941489, 12951489, 12591489, 12601489, 12611489, 12651489, 13061489, 13071489, 13081489, 13091489, 13101489, and 13231489.

The company has also asked consumers who have concerns or want additional information to visit its website: www.nestle-cwa. com, or call the toll-free number 0800120001.

They can also WhatsApp or send an SMS to 059 384 5697, 059 384 5649 and 059 384 5708 “We are working closely with the FDA to ensure that this process goes as smoothly as possible,” the statement indicated.

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WEDNESDAY JANUARY 19, 2022

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News

WEDNESDAY JANUARY 19, 2022

Venture Capital Trust Fund invest in more than 60 companies

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he Venture Capital Trust Fund (VCTF) has created seven funds with investments in over 60 companies, leveraging additional US$89.7 million from invested capital of US$29 million.

The sustainable direct jobs created from these investments totalled 3,400 and 13,500 indirect ones.

Mr Ken Ofori-Atta, the Minister of Finance, said the achievement was made over the last decade and a lot more could be done.

The Minister made this known during the inauguration of the reconstituted Board of Trustees of the VCTF in Accra.

The Fund was established to provide overall venture finance for SMEs has developed with new players entering the market with some National and some Regional funds with some being independent but are in partnership with the Fund.

The members are Mr Kofi S. Yamoah as Chairperson, Mr Yaw Owusu-Brempong, Dr John Ampontuah Kumah, Mrs Kosi Yankey-Ayeh, Mr Antonio Kisseih, Mrs Mabel Nana Nyarko Porbley, Mr Brian Frimpong and Mrs Efua Appenteg as Members.

He said the Fund was a beneficiary of the Ghana Economic Transformation Project (GETP) aimed at promoting

private investments and growth in non-resource-based sectors of the economy.

The Minister said the Fund, under the project, was entrusted with the mandate of providing venture financing for earlystage businesses and strategic industries with an investment capital of 40million dollars.

“This is a testament of the Government’s firm faith in the potential of the VC/ Private Equity ecosystem to lead SME development and build unicorns for the country,” he said.

Mr Ofori-Atta said the coming into operations of the Development Bank Ghana presented a major boost to the financial ecosystem as it was positioned to provide wholesale financing for on-lending to

businesses.

He said various Government policies such as the 1D1F, Planting for Food and Jobs, and Ghana Care Obaatampa Programme were aimed at building and developing the industrial and manufacturing base in Ghana and to support youth entrepreneurship.

To achieve this, the leveraging of private funding to supplement the effort of the Government is key, and the role for Private Equity and Venture Financing in achieving this aim cannot be downplayed.

The Minister said a survey conducted by the Africa Venture Capital (VC) and Private Equity (PE) Association in April 2020 indicated that West Africa had become an attractive destination for foreign investment and was

expected to be the most attractive destination for VC/PE investments over the next three years.

Between 2014 and 2019, investments worth US$10.2 billion were made in West Africa, with Nigeria attracting about 68 per cent and Ghana attracting 22 per cent of these investments.

Mr Ofori-Atta said Ghana was expected to attract more of such investments, especially with the financial sector reforms carried out by the Government, which “we believe has contributed to making Ghana a business-friendly destination to international investors.”

He had, therefore, mandated the new Board to position VCTF to help increase the total value of investment attracted into the country from the current 22 per cent to 35 per cent.

The Minister said the Government remained committed to this agenda and would continue to support the VCTF to deliver on its mandate.

Mr Yamoah assured the Minister of the board’s intention of building a strong corporate governance structure at the Fund.

He said the Fund was looking forward to the release of resources to execute their activities and operations and would continue to lend the needed support to the SMEs.

Ursula urges cross-border response to surging cybercrimes Continued from cover protecting citizens, businesses, and organizations in the digital era.

This, according to her, will be imperative to prevent more damaging cyber-attacks, which could have devastating impact on various economies especially in the aftermath of the COVID-19 pandemic.

“Cyber is a transborder issue and we need an interoperable system – legislations and criminal justice procedures to better cooperate and respond to the issues through incident reporting, information sharing investigations and prosecutions,” she said in a speech read on her behalf to open a four-day Commonwealth Secretariat conference on addressing cybercrime in subSaharan Africa.

The minister said African governments must show

commitment to existing protocols on cybersecurity, specifically by ratifying the Malabo and the Budapest Conventions in the quest to protect emerging digital economies.

“Ghana will continue to work with other countries and international partners to promote the responsible use of the cyberspace as we seek to extend the operationalization of the rule of law in the digital sphere,” she indicated.

In furtherance of this, the minister disclosed that about 3,500 criminal justice officials, including judges, prosecutors and investigators have been trained on cybercrime and electronic evidence over the last five years to improve justice response to cybercrimes.

Mrs. Owusu-Ekuful said government has taken a number of steps to create awareness and to build the capacity of relevant

stakeholders in an effort to strengthen the confidence of citizens and organizations in the emerging digital economy whilst instilling a responsible cybersecurity culture among the populace.

“Within the last five years, Ghana has taken its cybersecurity seriously partly because the government is investing in a number of digital infrastructures and services across all sectors of the economy,” she noted.

The conference enhanced the cyber-capability and resilience

of participants comprised of experts on cybercrime, including investigators, prosecutors and senior judiciary as well as authorities engaged in combating cybercrime in West Africa in support of the Commonwealth heads of government’s cyber declaration.

Mrs. Owusu-Ekuful said the conference was very timely as will contribute to the ongoing capacity development activities to improve the domestic, regional and global response to cybercrimes.

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WEDNESDAY JANUARY 19, 2022

Fitch Ratings downgrades Ghana to B negative

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he ratings agency, Fitch has downgraded Ghana to B Negative with Negative Outlook. The agency announced it has downgraded Ghana’s LongTerm Foreign Currency Issuer Default Rating (IDR) to B Negative from B, and the Outlook is Negative.

According to Fitch, the downgrade of Ghana’s IDRs and Negative Outlook reflect the country’s or sovereign’s loss of access to international capital markets in the second half of 2021, following a pandemicrelated surge in government debt, noting that this comes in the context of uncertainty about the government’s ability to stabilise debt and against a backdrop of tightening global financing conditions.

“In our view, Ghana’s ability to deliver on planned fiscal consolidation efforts could be hindered by the heavier reliance on domestic debt issuance with higher interest costs, in the context of an already exceptionally high interest expenditure to revenue ratio,” it said.

Fitch states that Ghana’s effective loss of market access to international bond markets increases risks to its ability to

meet medium-term financing needs, which in the view of Fitch, Ghana has sufficient liquidity and other available external financing options to cover near-term debt servicing without Eurobond issuance.

“However, there is a risk that non-resident investors in the local bond market could sell their holdings, particularly if confidence in the government’s fiscal consolidation strategy further weakens, placing downward pressure on its reserves,” it added.

According to Fitch, it assumes that Ghana will be unable to issue on international capital markets

in 2022 and prospects for doing so in 2023 are uncertain, noting that Ghana’s international reserve position has become highly reliant on annual Eurobond issuance.

“Moreover, as of July 2021, non-resident investors held just below 20 per cent ($5.8 billion) of Ghana’s outstanding domestic government debt. While the maturity of these holdings is long-term, an outflow would put additional downward pressure on Ghana’s reserves,” it asserts.

“We forecast that Ghana will face approximately $2.7 billion (3.3 per cent of GDP) in sovereign external interest service and amortisation payments in 2022. We believe

that the government can meet its external debt servicing without market access given its reserves, which we estimate at $7.9 billion at end-2021 (3.2 months of current external payments).

Reserves were bolstered by $3 billion in Eurobonds in second quarter of 2021, which helped the government to meet its approximately $3.5 billion (4.7 per cent of GDP) in sovereign external debt servicing costs last year, and by the $1 billion IMF SDR allocations,” it said.

Accordingly, Fitch forecasts that the general government fiscal cash deficit will narrow to 9.1 per cent of GDP in 2022 from 15.1 per cent in 2020 and 12.5 per cent in 2021 (including 3 per cent of GDP in domestic arrears clearance and payments related to the stateowned energy sector).

“The 2022 deficit would still be more than twice the 2022 ‘B’ median of 4.6 per cent and risk to public finances remain high. The government envisages a deficit (including financial and energy sector support) of 7.4 per cent in 2022 and 5.5 per cent in 2023, with a fall to below the legal deficit ceiling of 5 per cent in 2024,” the agency said.

NGO gives boost to clean beach agenda as Korle Lagoon gets litter trap

By Patrick Paintsil

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oastal Conservancy Organisation (CCO), a nongovernmental outfit that promotes clean beaches and enhanced quality of marine life, has deployed a state-of-the-art litter trap system for the deflection and recovery of floating trash on the Korle Lagoon to control the flow of land-based ocean-bound

plastics from entering the sea.

The Desmi Enhancer E-B2100 with Ro-fence 600 is a technology that is deployed along the coastlines to prevent plastics and other floating debris from flowing into the sea and will serve as a proactive mechanism in the fight against ocean/marine pollution.

“As a marine-focused organization, we decided to scale up our activities as an advocate

for clean beaches and safe marine life and not wait for the beaches to get littered with debris before we clear them.

We are piloting this litter trap system with the Korle Lagoon, which is the biggest floating waterway in Accra, to get stakeholders’ attention that there’s an equipment that can be used to stop land-based oceanbound plastics from entering the sea and littering our beaches,” Justice Eshun, Chairman and Project Manager of the organization, told Business24 in an interview.

In the interest of boosting coastal tourism, the NGO says it will be counting on the cooperation and support of related state agencies and funding organisations to promote clean ocean and beaches along the country’s coastline.

According to the NGO, the plan is to deploy the technology to other marine pollution hotspots that it has identified along the nation’s coastline and appealed

to both state and donor agencies for support to acquire more of the ultramodern litter trap technology to serve that purpose.

“This equipment is the first of its kind in Ghana and possibly West Africa. We were introduced to the manufacturer by our sponsor, Ghana Ports and Harbours Authority; we struck a partnership with them and they donated this equipment to support our work.

We are also donating it to the government and people of Ghana, especially the James Town community,” Mr. Eshun said.

Activities of the Coastal Conservancy Organisation provides sustainable solutions to Ghana’s filthy coastline and water bodies through periodic beach cleaning exercises and awareness creation.

The organisation says it is willing to work and build strong and lasting partnership with all levels of government, MMDA’s as well as the corporate and community minded businesses to ensure a clean healthy marine and coastal environment in Ghana.

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WEDNESDAY JANUARY 19, 2022

Covid-19: ‘We must continue to intensify airports disinfection

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Senior Officer of the Vector Control Unit, Zoomlion Ghana Limited, Abel Djangmah, has reiterated the need to continuously intensify the ongoing monthly disinfection operation at the country’s airports.

According to him, this has become necessary, especially in the wake of the Omicron variant of the Covid-19 pandemic, which spreads fast, and the fact that a lot of people (both Ghanaians and foreigners) travelled into the country for the Yuletide.

Mr Djangbah made the call while speaking to the media during this month’s disinfection exercise at the Kotoka International Airport (KIA) on Monday night ( January 17, 2022).

He said for the past year, Zoomlion has been disinfecting the country’s airports every month, explaining that “we do that because of the Covid-19 pandemic, and that just a little about two weeks ago, we were at Kotoka to embark on same all as part of efforts to fight the virus.”

However, he indicated that one key challenge with the Covid fight was the unstable nature of the virus.

This development, he stressed, was making the control measures by scientists a little challenging.

“Therefore, we cannot relent

on our efforts in the previous exercises that we have done. We have to continue applying all the necessary measures until it is finally declared that Covid-19 is no more in the country,” Mr Djangbah urged.

In addition to the airports disinfection, the senior officer of the Vector Control Unit of Zoomlion said it was equally imperative that Ghanaians also obey the other Covid safety protocols.

He said these were wearing of nose mask, regular washing of hands with soap, use of alcoholbased hand sanitisers and practising social distancing as well.

“So, all these measures together

will help mother Ghana defeat Covid-19,” he said.

On the question of effectiveness of the disinfection exercise, Mr Djangbah said the product being used by his outfit was very potent enough to fight the virus. “…and in particular, it works on surfaces very well. So it kills viruses on surfaces instantly when applied. These are products that are not produced here but imported from Germany and other places.” …So they have been tested and proven to be efficacious, and they have worked in several countries,” he said.

Further, he explained that anytime a disinfection operation was carried out by his company,

it was followed by an evaluation exercise.

“Evaluation is not done in a day. It takes time so you cannot just stand here and say that what I have done is effective or not.

Even with the vaccine, it could be seen that though people have taken the jabs, they were still being entreated to observe the other Covid protocols,” he noted.

For scientific tasks, he said after the work is done, there was still the need to evaluate and monitor to be able to come out with good evidence to point out that it has been effective.

“So our main aim is not just about being effective today, but then the disinfection is a measure put in place that must be carried out periodically so that the day that the government of Ghana will say Covid-19 is no more in the country, you and I can heave a sigh of relief and say that yes we have defeated Covid together,” Mr Djangbah stated.

He used the chance to remind Ghanaians, and in particular travellers coming into the country, to strictly and continuously adhere to the Covid protocols.

He also reassured that his outfit will continue to play its role to make the country’s airports safe for both staff members and travellers.

Zipline delivers over 500,000 COVID-19 vaccines across Ghana

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edical drone delivery giant, Zipline, has announced the delivery of over 500,000 COVID-19 vaccines to dosing centres, mostly within hard-to-reach areas around all four of its distribution centres in Ghana.

This has come at a time when several countries within the sub-region are struggling to decentralize the even rollout of these vaccines.

The use of aerial unmanned drones to efficiently deliver medical commodities, including Covid-19, positions Ghana as a nation on a sustainable path to achieving vaccination for almost half of the country’s population.

Since 2019, Ghana has relied on Zipline’s cold chain storage system and instant logistic vehicle to push the radical vaccination of its citizenry through an elaborate vaccination rollout programme.

The Ministry of Health - Zipline collaboration has seen the country front delivery infrastructure to speed up the vaccine rollout

plan, attracting praise from many stakeholders.

“We remain honoured to be working with the government of Ghana on a mission that seeks to eradicate all barriers that prevent the efficient rollout of these vaccines to all parts of the country. Our technology is a tried and tested one, having delivered over three-million programmed vaccines to over a thousand health facilities in several hard-to-reach areas of Ghana”, Naa Adorkor Yawson, General Manager of Zipline. “Today, we are able to deliver medical products and vaccines to areas such as Afram Plains within forty-five minutes, a distance that could take close to six hours by road, from our closest distribution hub”.

Elsewhere in other African countries, the report card on vaccine rollout remains a huge challenge. In March 2021, South Sudan had to destroy 59,000 covid vaccines out of 200,000 received. In April same year, the Democratic Republic of Congo

returned 1.3 million doses of vaccines to COVAX, UNICEF citing challenges of a lack of storage system. Similar concerns in Malawi saw the burning of 20,000 expired covid vaccine doses. Over the course of time, nearly 450,000 doses of vaccines have been destroyed by African countries largely due to storage and distribution challenges. The case seems different in Ghana; thanks to the efficient roll-out by the government of Ghana with support from the Zipline technology, For years, Ghana has been working to adapt its supply chain to be more agile and equitable, first, in an effort to eradicate diseases like polio, and more recently to combat COVID-19.

To date, Zipline has distributed nearly 3.8 million vaccines, including routine immunizations vaccines requiring sensitive coldstorage handling.

The reliable cold chain storage systems Zipline has, has been able to fly past the challenges

experienced in other African countries and is delivering results for Ghana. The distribution centres located in strategic positions of the country is expected to continue to supply vaccines to areas that need them and demonstrate to people the role of instant logistics in the global campaign against COVID-19 to help strengthen health systems more broadly.

Ghana is among the fastest African countries to administer COVID-19 doses and it is projected that at the end of the year, the figure of 500,000 vaccine deliveries by Zipline will double as publicity firms up for more people to be vaccinated.

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WEDNESDAY JANUARY 19, 2022

The science of gratitude and its inherent blessings

By Louisa Afriyie Afrane Okese The gratitude mindset

Positivity and gratitude – The winning combination

If there are any values or morals that contribute to our perception of people, it is gratitude or the lack of it that leaves an impression on us. It highlights the character of people and their mindset towards others.

Gratitude, believe it or not, helps one to overcome negativity.

The tendency to focus on negative events rather than the positive ones amplifies all negative experiences and makes it seem as though there are not any positive experiences in your life, in your surroundings or in your workplace. By focusing on the positives, you amplify more of the positives, therefore allowing you to feel calm, happy, at peace and relaxed. This might seem like a non-negotiable for some, and actually a no brainer for others but it is not. It is proven that people complain more than giving thanks. They say bad news travel faster than good news.

Gratitude leads to positivity We need to take a step back and be grateful for the little things and what you have in your life. It has been said that if you learn to manage what you have, you get more. In a calm, relaxed, gratitude mindset, you are able to foresee opportunities and new things. You are also able to see the people for who they are and the

Generally, when positivity and gratitude is a dominant feature within your life, good things manifest. In all of this, if gratitude does not come to you naturally, it is fine because we are creatures of habit. You can start building that into habit. The act of gratitude changes our brains. By practising gratitude, it allows our brains to release serotonin and dopamine, which are two feel good factors.

And this will naturally impact one’s mood, willpower and motivation over a period of time.

It is said that to form a habit, it takes around 21 days. Can you imagine how great you will be feeling and all the good things that could come out of this?

Other studies have found that practising gratitude can contribute to improved relationships, finding the good in people instead of the bad, decreased anxiety and increased generosity. It can also impact employee engagement. It is very good for business. Appreciating people and their work, is the mark of a good leader. It makes people want to come to work all the time. That in itself should be met with the utmost gratitude.

We have had a topsy-turvy couple of years. Every step we take should be dotted with some gratitude.

kindness they emit.

We all have flaws, nothing or no one is perfect. The act of gratitude births many miracles. One way of noting what you are grateful for is to literally “counting your blessings and name them one by one”. In other words, write down everything in your life you are grateful for, daily. In doing so, you will realise how fortunate you are, at this point in your life.

There is a thin line between positive reinforcement, speaking into existence and delusion. But what the mind can perceives, it achieves. So why not be thankful for all that is to come. Why not be thankful for good health when you are not feeling your best. Why not be thankful for abundant opportunities to come.

Why not be thankful for earning an income.

VisionSpring launches "Reading Glasses in Pharmacies Project"

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isionSpring, a nong o v e r n m e n t a l organization, today

launched the 'Reading Glasses in Pharmacies Project' at Pakyi Number One in the Ashanti

region, with support from Latter Day Saint Charities.

The project's goal is to make eye care more accessible by training pharmacists to perform vision screenings and helping them offer reading glasses.

Mr Harry Ahimah, Project Leader for VisionSpring, observed pharmacies and over-the-counter medicine shops are often the first places people go when they are feeling unwell.

“Most often because of the long queue people don’t want to go to the eye clinic. By making reading glasses available through pharmacies, we are making it more possible for people to easily access eye care. If their problem goes beyond reading glasses, they will be referred to a nearby clinic for a more thorough eye

examination,” he said.

Nearly a hundred people had their eyes screened at the launch event. Of the 41 who needed reading glasses, 32 had never before owned glasses. All 41 received complimentary glasses.

By the end of 2024, the program aims to partner with 200 pharmacies throughout the Ashanti region.

Mr. Ahimah explained, “Based on the project’s success, we will roll it out to other parts of the country. This project is part of a four-year grant, and we hope that by the end of the grant period, we will help as many people as possible prevent avoidable blindness.”

VisionSpring will make reading glasses available at all the trained pharmacies for easy acquisition.

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African Business

WEDNESDAY JANUARY 19, 2022

Horn of Africa: Swift aid for drought-affected farmers and herders needed to avoid a hunger crisis

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ver $138 million in urgent funding is needed to assist 1.5 million vulnerable people in rural communities in the Horn of Africa whose fields and pastures have been hard hit by an extended drought, the Food and Agriculture Organization of the United Nations (FAO) said today, as it released a comprehensive response plan calling for a range of support for agriculture in the region.

In a region already prone to food insecurity associated with weather extremes, natural resource limitations and conflict, the COVID-19 pandemic and 2020-21 locust invasion have stretched the coping capacities of rural communities to the limit, undermining agricultural productivity.

Now a third season of drought driven by La Niña is raising concerns that a large-scale hunger crisis could break out if the region’s food producing rural communities do not receive adequate assistance timed to the necessities of upcoming agricultural seasons.

In Ethiopia, Kenya and Somalia, the worst affected countries, projections indicate that some 25.3 million people will be facing high acute food insecurity by mid-2022 – if that scenario should materialize, it would place the Horn of Africa among the world’s largest-scale food crises.

The criticality of supporting rural livelihoods FAO’s Horn of Africa Drought Response Plan calls for over $138 million to help rural communities

withstand this latest threat – with $130 million of that total urgently needed by the end of February to provide time-critical assistance to highly-vulnerable, agriculturereliant communities in the three most impacted countries.

"We know from experience that supporting agriculture at moments like this is hugely impactful – that when we act fast and at the right moment to get water, seeds, animal feed, veterinary care, and much needed cash to at-risk rural families, then hunger catastrophes can be averted," said FAO’s Director of Emergencies and Resilience, Rein Paulsen.

“Well, the right moment is now. We urgently need to support pastoralists and farms in the Horn, immediately, because the cycle of the seasons waits for no one,” he added.

In 2011, a severe drought contributed to a famine outbreak in Somalia that saw 260 000 people perish from starvation – most of them before an official famine declaration was made.

In 2017, however, potential drought-associated famines in four countries in the greater Horn of Africa region were averted thanks to a concerted international push to act early and that prioritized helping rural communities cope with stresses before they spiralled into food crises.

The clock is already ticking, Paulsen warned. The lean season that has just started is marked by limited grazing opportunities for pastoralist families, and their livestock will need nutritional and veterinary support. Crop-reliant

families, for their part, must have seeds and other supplies in hand to hit the ground running when the main Gu planting season begins, in March.

FAO's plan of action FAO's drought response plan seeks to target support to 1.5 million of the most at-risk rural populations in Ethiopia, Kenya and Somalia.

For pastoralist families, this would include providing animal feed and nutritional supplements and mobile veterinary health clinics to keep their livestock healthy and producing milk, transporting water to 10 000 litre collapsible water reservoirs set up in remote areas, and upgrading existing wells to run on solar power.

In the case of crop-reliant families, FAO aims to distribute seeds of drought-tolerant earlymaturing varieties of sorghum, maize, cowpea and protein-rich mung bean and nutrient-dense vegetables, and arrange for preplanting land-ploughing services and access to irrigation as well as training on good agricultural practices.

Cash for work programmes would allow able-bodied households to earn extra income by helping rehabilitate agricultural infrastructure, like irrigation canals or boreholes.

Families not able to work for health or other reasons would receive unconditional infusions of cash. Providing rural families with extra disposable income gives them the means to buy food at market while they wait for their

harvests to come in.

In Somalia, FAO’s plan calls for the provision of boats, equipment and training to help coastal communities who do not typically engaging in fishing secure a new and much-needed source of calories and protein, building on ongoing FAO work to promote the diversification of livelihoods in the country.

If fully funded the agency’s plan would allow for the production of up to 90 million litres of milk and up to 40 000 tonnes of staple food crops in the first part of 2022, putting over 1 million highly food insecure people on a safe footing for at least six months.

Durable solutions By allowing people to stay home and productive and preserve their livelihoods, while increasing their resilience, FAO’s intervention would lay the groundwork for longer-term stability and food security.

“For years we have seen the same cycles of vulnerability and stresses undermining agricultural productivity in the rural communities of the Horn of Africa. It is time to invest more in addressing the drivers of hunger, and build people’s capacity to keep producing even when hit by shocks like drought, so that inevitable shocks do not inevitably descend into humanitarian crises,” said Chimimba David Phiri, FAO’s Subregional Coordinator for Eastern Africa (SFE) and Representative to the African Union and to the United Nations Economic Commission for Africa.

12

Legal Matters

WEDNESDAY JANUARY 19, 2022

Richard AmoHene V GRA and Others:

A case at the Supreme Court seeking the removal of the 30% payment of tax assessed by the Ghana Revenue Authority (GRA) before an objection could be entertained by the CommissionerGeneral of the GRA and 25% before an appeal could be entertained by the High Court

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enerally, tax laws are administered by the tax or revenue authorities of the country. In Ghana, the tax laws are administered by the Ghana Revenue Authority (GRA), with a CommissionerGeneral (CG) of the authority.

In the administration of the tax laws, the CG (as GRA) raises tax assessment on both individuals and companies. It is predominant that, the assessment raised by GRA do not meet the expectation or agreement of the taxpayer.

Hence, the taxpayer may object to the assessment raised and provide argument to support his position of his/her tax liability or why the GRA assessment is wrong.

The opportunity to object to the tax assessment by GRA has not been made easy by the tax laws. To start with, the tax laws require the taxpayer who wishes to object to an assessment to pay 30% of the amount of assessment before the CG (GRA) will give the taxpayer the opportunity to object to the assessment.

Secondly, the rules of the court (High Court rules) require a down payment of 25% of the amount before the court will entertain an appeal to the court in respect of the tax assessment.

These provisions in the laws, in the view of the Plaintiff (Richard Amo-Hene), are not consistent with the provisions of the 1992 Constitution of Ghana regarding access to justice and right to fair trial.

Through his lawyers, led by Theophilus Tawiah-Managing Partner at WTS Nobisfields, he has filed this case at the Supreme Court to seek a declaration that the requirement for a taxpayer to pay 30% of a tax assessment made, before an objection to the

Assessment can be entertained by the GRA, is unconstitutional and should be rendered null and void.

He is also praying for the Supreme Court to declare unconstitutional, null and void, the requirement by the High Court Rules to pay 25% of the disputed tax before an appeal to court can be entertained by the High Court.

The tax laws require that, when the Ghana Revenue Authority (GRA) performs an assessment of tax on taxpayer, GRA should not entertain an objection to the assessment unless 30% of the amount is paid. A similar provision in the High Court rule also require a down payment of 25% of the amount being objected before an appeal can be entertained by the High Court.

The taxpayerhas a maximum of 30 days to file for an objection of a tax assessment made by GRA. Specifically, Section 42(5)(b) of the Revenue Administration Act, 2016, Act 915 (as amended) requires a taxpayer to pay 30% of all outstanding taxes (in case of other taxes) before an objection to a tax decision can be entertained by the Commissioner-General (CG). For this reason, a tax decision to which an objection is not made within thirty days is final.

Again, Order 54 rule 4(1)(2) of the High Court (Civil Procedure) Rules, 2004 C.I 47 requires a taxpayer to pay 25% of the disputed tax contained in the notice of assessment before an appeal can be entertained by the High Court.

He is seeking four reliefs, the combined effect of which he believes will ensure that a taxpayer would have an unimpeded chance to freely object to tax assessment

by GRA and even proceed to the court, where necessary, to seek

justice.

He believes that his legal team has mounted a strong and convincing argument to support his case and that his effort to respond to his constitutional duty and right will be met.

B. Effect and Benefits of the Declaration A decision in favour of the plaintiff will be a game changer in justice and tax administration in Ghana. To start with, taxpayers would not be required to pay the 30% or 25% of any tax assessment before an objection to tax assessment is heard by the CG. That is, cashflow will no longer be a hindrance to taxpayers for their cases to be heard by both the CG or the Court. Parliament has passed an Act to amend the Revenue AdministrationAct, 2016, Act 915. This Act (Revenue Administration (Amendment) Act, 2020, Act 1029) established the Tax Appeals Board (the “Appeals Board”). The Appeals Board shall hear and determine appeals against the decisions of the Commissioner General with respect to objections to tax decisions.

The Appeals Board is to be made up of experienced lawyers and tax professionals. The Appeals Board is empowered to reduce, confirm, increase or annul the assessment or decision appealed against or even make any other orders as the Board may deem fit.

It is an expectation that, the Appeals Board will serve as an independent body that will resolve appeal cases without delays and without going through litigation. However, the taxpayer will not have the opportunity to appeal without meeting the 30% requirement.

Also, it a known fact that,

the GRA Audit team or officers on many occasions have not exercised much diligence/ accuracy in arriving at their conclusion. This is mostly from the fact that, once the assessment is issued, in the worst case, 30% of the amount is secured before one could have the case appealed.

This subjects the taxpayer to cash flow stress in paying the deposit and hiring a consultant under the pretense that the taxpayer cannot freely object to the assessment.

The effect of this case will ensure a level playing ground where the GRA necessarily must prove every assessment made since the amount can freely be objected without cost to the taxpayer. GRA will be required to conduct a diligent tax assessment which is convincing enough and agreed upon by both parties to avoid an objection. This also requires that GRA will have to employ advanced technology and tools to assist the Authority to conduct a more accurate and less contestable assessment.

Furthermore, the GRA stands to benefit from the impact of a decision in favour of the plaintiff.

There are many instances where tax objection has led to significant reduction of tax assessment and hence expected revenue

by GRA. Where advanced tools, technology and methodologies are employed, a more accurate and less contestable assessment will be the result, and this will lead to stable revenue expectation

by GRA and government in particular.

The plaintiff believes that where his prayer is granted by the court, it will be a win-win situation for both himself, GRA (government) and all citizens with the duty to defend the constitution of Ghana.

13

Global Economy

WEDNESDAY JANUARY 19, 2022

Why did almost nobody see inflation coming?

By Jason Furman

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n 2008, as the global financial crisis was ravaging economies everywhere, Queen Elizabeth II, visiting the London School of Economics, famously asked, “Why did nobody see it coming?”

The high inflation of 2021 – especially in the United States, where the year-on-year increase in consumer prices reached a four-decade high of 7% in December – should prompt the same question.

Inflation is not nearly as bad as a financial crisis, particularly when price increases coincide with a rapid improvement in the economy. And whereas financial crises may be inherently unpredictable, forecasting inflation is a staple of macroeconomic modeling.

Why, then, did almost everyone get the US inflation story so wrong last year? A survey of 36 privatesector forecasters in May revealed a median inflation forecast of 2.3% for 2021 (measured by the core personal consumption expenditures price index, the US Federal Reserve’s de facto target gauge). As a whole, the group put a 0.5% chance on inflation exceeding 4% last year – but, by the core PCE measure, it looks set to be 4.5%.

The Fed’s rate-setting Federal Open Market Committee fared no better, with none of its 18 members expecting inflation above 2.5% in 2021. Financial markets appear to have missed this one as well, with bond prices yielding similar predictions.

Ditto the International Monetary Fund, the Congressional Budget Office, President Joe Biden’s administration, and even many

conservative economists.

Some of this collective error resulted from developments that forecasters did not or could not expect. Fed Chair Jerome Powell, among many others, blamed the Delta variant of the coronavirus for slowing the reopening of the economy and thus driving inflation higher. But Powell and others had earlier argued that the increase in inflation in the spring of 2021 was spurred by an overly rapid reopening as vaccination reduced case numbers. It is unlikely that both of these excuses are correct.

The emergence of Delta, like the pandemic in 2020, probably kept inflation lower than it otherwise would have been.

Supply-chain disruptions were another unanticipated development that allegedly blew up inflation forecasts. But while the pandemic has caused some genuine bottlenecks in production networks, most are churning out much more than last year, with both US and global manufacturing output and shipping up sharply.

This brings us to a more important source of forecasting error: not taking our economic models seriously enough.

Forecasts based on extrapolation from the recent past are nearly always as good as, or better than, those based on more sophisticated modeling. The exception is when there are economic inputs that are well outside the realm of recent experience. For example, the extraordinary $2.5 trillion in fiscal support for the US economy in 2021, amounting to 11% of GDP, was far larger than any previous fiscal package since World War II. A simple fiscal multiplier

model would have predicted that average output in the last three quarters of 2021 would be 2-5% above pre-pandemic estimates of potential. To think that a stimulus of this magnitude would not cause inflation required believing either that such a huge adjustment was possible within a matter of months, or that fiscal policy is ineffective and does not increase aggregate demand. Both views are implausible.

Economic models also gave us substantial reason to believe that several factors would reduce the US economy’s potential in 2021. These included premature deaths, reduced immigration, foregone capital investment, the costs of hardening the economy to COVID-19, pandemic-induced exits from the workforce, and all of the difficulties of rapidly reassembling an economy that had been torn apart. Such constraints made it very likely that additional demand would push inflation even higher.

A final set of errors arose because our models were missing key inputs or interpretations.

To the degree that people relied on economic models, they often used a Phillips curve to predict inflation or changes in inflation based on the unemployment rate. But these frameworks had difficulty reckoning with the fact that the natural rate of unemployment likely rose, at least temporarily, as a result of the COVID-19 crisis.

More important, unemployment is not the only way to measure economic slack. Estimates from before the pandemic show that the “quit rate” and the ratio of unemployed workers to job openings are better

predictors of wage and price inflation. These other indicators of slack were already tight at the beginning of 2021 and were very tight by the spring.

In retrospect, the mental model I find most useful for thinking about 2021 is to apply fiscal multipliers to nominal GDP, use them to predict how much of the fiscal stimulus will be spent, and then try to predict real GDP by understanding what the economy’s productive capacity is. The difference between the two is inflation.

Multipliers indicated that total spending in 2021 would go up a lot, while production constraints suggested that output would not increase by as much. The difference was unexpectedly higher inflation.

Where does this leave us in understanding inflation in 2022?

Instead of making inertial forecasts that the future will resemble the past, taking our models seriously means accounting for high levels of demand, continued supply constraints, and ever tighter labor markets with rapidly rising nominal wages and higher inflation expectations. Some types of inflation, notably in goods prices, are likely to decline this year, but others, including services inflation, will likely increase.

I therefore expect another year of significant US inflation, maybe not as high as in 2021 but plausibly in the 3-4% range. But the most important forecasting lesson from last year is humility.

We should all be adding some large error bands around our expectations and be prepared to update our outlooks as the economic situation unfolds.

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WEDNESDAY JANUARY 19, 2022

15

Feature

WEDNESDAY JANUARY 19, 2022

The cold war that wasn't

By Shlomo Ben-Ami

U

S President Joe Biden has repeatedly cast his country’s rivalry with China as a battle between democracy and autocracy, an ideological clash reminiscent of the Cold War. This narrative is inaccurate – the United States and China are locked in a competition for strategic dominance – and all but precludes resolution.

Whereas demands related to tangible assets and security concerns can be accommodated, ideological struggles typically end one way: with the unconditional defeat of one of the parties.

The US should not be attempting to “defeat” China, as it did the Soviet Union, because, first and foremost, China is not on a quest to spread “socialism with Chinese characteristics” around the world. When Chinese President Xi Jinping declared in 2017 that “war without the smoke of gunpowder in the ideological domain is ubiquitous, and the struggle without armament in the political sphere has never stopped,” he was mainly demanding that outsiders respect China’s institutions and cultural traditions.

This partly reflects Chinese nationalism, fed by historical narratives, especially the memory of the “century of humiliation” (1839-1949), during which China faced interventions and subjugation by Western powers and Japan. But it is also pragmatic: The Communist Party of China recognizes that some domestic trends could destabilize the country and eventually even undermine the CPC’s rule.

For example, China’s economic rise has produced an educated, well-connected, and fastgrowing middle class. If these increasingly powerful consumers rejected restrictions on privatesector activity or limits to free expression, the CPC would have trouble on its hands. Given this, the CPC views US advocacy of political freedom and human rights in China as an effort to subvert its rule.

Even America’s drive to export liberal democracy to Asia and Africa has been less an ideological problem for China than a strategic one. Functioning democracies are likely to be harder bargaining partners for China and might even be brought into US-led antiChinese alliances.

On this front, China’s fears have probably been assuaged

by recent developments. With the chaotic US withdrawal from Afghanistan and the Taliban’s quick reconquest of the country, America’s democratic “crusade” – to borrow the language of former US President George W. Bush – seems to have reached an ignominious conclusion.

But even if the US is not bringing new countries into the democratic fold, its existing alliance system is formidable, and Biden is committed to strengthening it further. For example, he has worked to resuscitate NATO; created AUKUS, a new defense and technology alliance with the United Kingdom and Australia; and deepened security cooperation among key democracies in the Indo-Pacific (Australia, India, Japan, and the US, known as the “Quad”).

This focus on alliances is probably the biggest difference between Biden’s China policy and that of his predecessor, Donald Trump, who spearheaded the shift toward confrontation. (Prior to Trump, recent US presidents largely attempted to maintain good working relations with China, not least because they clung to the assumption that the country’s economic rise would gradually bring about political change.)

For China, this difference is worrying. Though the US cannot contain China alone, it can apply

strong diplomatic pressure if it has other powers on its side, and China is in no position to create an alliance system that can match that of the US. Far from stabilizing the situation, however, this imbalance could fuel China’s insecurity, making constructive engagement all the more difficult.

America’s position is hardly unassailable, either.

Biden’s touted Summit for Democracy exposed the limits of ideology as a mobilizing tool for a global antiChina coalition. It does not help that America’s own democracy is plagued by polarization, paralysis, and discontent. Add to that the world’s highest number of COVID-19 deaths, and the “shining city on a hill” has lost its luster, to say the least.

While the US is no ancient Rome – not least because it retains extraordinary advantages in crucial areas, from defense and diplomacy to technology and finance – it is suffering from what the historian Edward Gibbon described as “the natural and inevitable effect of immoderate greatness.” It has failed to adapt its democratic institutions to meet the needs of its population and its responsibilities as a world power.

Ultimately, the US is an exhausted power, and it is now being challenged by a rising one.

This dynamic is as longstanding as it is dangerous. As the ancient

historian Thucydides explained, the rise of Athens, and the fear that this instilled in Sparta, made the catastrophic Peloponnesian War inevitable.

Harvard’s Graham Allison notes that there have been 16 similar cases in the last 500 years. War broke out in 12 of them.

To avoid what Allison calls the Thucydides Trap, the US must abandon jingoistic rhetoric and Manichean thinking, replacing megaphone diplomacy with wise and creative statesmanship. The choice is not between capitulating to China and crushing it. The US must recognize China’s legitimate concerns and aspirations, and it must be prepared to negotiate accordingly. (Sooner or later, it will have to do the same with regard to the West’s current showdown vis-à-vis Russia over Ukraine and NATO’s expansion.)

The US must accept that the days of American hegemony are over. In today’s multipolar world, different political cultures and systems will have to learn to coexist. The ideological defeat of the Soviet Union did not exactly usher in a liberal democracy.

Perhaps more important, even if China somehow suddenly became a liberal democracy, its historical grievances and territorial aspirations would remain, as is the case with Russia today. In this sense, ideological competition is beside the point.

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Feature

WEDNESDAY JANUARY 19, 2022

Submerged by COVID

Barry Eichengreen

T

he wildfire spread of the Omicron variant adds a new element of uncertainty to the global economy. But when it comes to emerging markets, the consensus view is that these countries’ prospects remain bright. J.P. Morgan Global Research expects their collective GDP to grow by 4.6% this year, faster than its 2015-19 trend.

S&P Global Ratings is even more bullish, projecting that emerging economies will expand by 4.8%.

Strikingly, these growth figures are virtually identical to the forecasts for 2022 released by the International Monetary Fund in October 2019 – that is, before the pandemic. It has become a popular trope that COVID changes everything – or, rather, everything except the outlook for emerging markets.

In fact, there are multiple reasons for worrying that this consensus is too rosy.

First, emerging economies are now more heavily indebted.

Public-debt-to-GDP ratios were already rising before the onset of the pandemic. But now they have reached alarming heights, at more than 60% of GDP. While no one doubts the wisdom of borrowing to respond to a public-health emergency and economic crisis, these heavy debts pose management problems. Scarce fiscal resources that might otherwise be devoted to health care, education, and infrastructure will have to be diverted to debt service. And the burden will grow heavier as

tighter monetary policy by the US Federal Reserve and capital scarcity worldwide put upward pressure on interest rates.

Moreover, public debt is only part of the problem. Since the onset of the pandemic, the debts of households and nonfinancial corporations have risen nearly as rapidly as the debts of public sectors. It is likely that when some of these private debts go bad, the losses will be socialized and end up on government balance sheets.

The second reason to be skeptical of the consensus on emerging markets is that the risk of working in close quarters has spurred accelerated automation in advanced economies. Because the need for close handeye coordination previously frustrated such efforts, the traditional route to higher incomes for emerging markets and developing countries has run through the export of laborintensive manufactures. Although these industries do not require heavy investments or highly skilled labor, they familiarize workers with factory discipline, enable learning by doing, accustom firms to competing on global markets, and generate foreign exchange.

The fear is that these manufactures will soon be produced by robots and 3D printers in the same highwage countries where they are sold. This prospect reinforces established concerns about “premature deindustrialization” in emerging markets.

Relatedly, the global supply chains so important to emerging

economies experienced major disruptions because of the pandemic, leading firms to source inputs closer to home. Developedcountry governments, for their part, have cited shortages and economic-security concerns as justification for creating incentives for firms to onshore more manufacturing production.

For emerging markets, the negative effects are not unlike those of accelerated automation.

Many low- and middle-income countries start with simpler assembly tasks before moving into more sophisticated manufacturing operations. These opportunities will be fewer to the extent that advanced economies do more assembly at home.

Mexico may benefit from efforts by US firms to shorten their supply chains. Eastern European economies may benefit from an analogous desire on the part of EU countries. But South Asia, Africa, and Latin America may find themselves cut off.

Above all, there is the impact of COVID-19 on human capital formation.

Though negative everywhere, the effects are likely to be especially severe in emerging markets. Few emerging markets possess the high-speed broadband needed for effective distance learning. A slower pace of vaccination will mean continuing school closures and absenteeism. According to an estimate by the World Bank, the share of children in emerging markets and developing countries unable to read and understand a simple text by the age of 10 will increase from 53% to 63% as a

result of the pandemic.

The most powerful counterargument is that emerging markets will benefit from a supercharged global economy. Productivity growth in the advanced economies, which had been trending downward for several decades, was strong during the pandemic, especially in the United States. Technological and organizational changes prompted by the pandemic could now sustain that acceleration. Faster growth in developed countries would then create additional demand for emerging-market exports.

At this stage, this argument is purely hypothetical. The recent pickup in advanced-economy productivity growth is entirely attributable to business-cycle factors – most recently to firms using their resources more intensively as economies bounce back from their 2020 lows. In fact, the productivity trend looks much like it did in earlier cyclical recoveries – meaning that there is no evidence of a durable acceleration.

But all is not doom and gloom.

In contrast to earlier downturns, central banks and governments in emerging markets have been able to respond in stabilizing ways, reflecting their success at building credibility. So far, the bank failures and financial accidents that historically punctuated such episodes have been few and far between. Vaccine production and administration are ramping up.

That said, downward revisions of growth forecasts are almost certainly coming.

17

Economic Analysis

WEDNESDAY JANUARY 19, 2022

Ministry of Fianance response to Bloomberg’s article on Ghana’s debt

By Kester Kenn Klomegah

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n Thursday, 13th January 2022, the attention of the Ministry was drawn to a widely circulated Bloomberg article captioned – “Ghana Debt Moves Deeper into Distress as Investors lose Patience”.

There are some serious factual errors in the article, which may give investors some cause for concern, if not corrected. For example, Bloomberg stated 81.5% as end of year debt to GDP ratio.

This is incorrect. Our provisional nominal debt to GDP, as at the end of November 2021 was 78.4%, which is the latest data available. December revenue collections are seasonally the largest for any year, it is unlikely that our financing requirements in December will result in us exceeding 80% debt to GDP by December 2021.

The Bloomberg article gave wrong historical debt to GDP figures. It is essential we make the correction that Ghana’s debt to GDP figures a decade ago were 39.67% and 47.80% for 2011 and 2012, respectively, and not 31.4% as stated in the Bloomberg publication. Again, it is important to note that for the period prior to the COVID-19 global pandemic, Ghana experienced an average debt-to-GDP ratio of 56.4% from 2015 to 2019. In 2020, Ghana's GDP grew by 0.4% because of the impact of the Covid-19 Pandemic on the economy. Financing of the additional Covid-19 related expenditures, in addition to revised revenue targets, due to the impact of the pandemic, led to an increase in debt-to-GDP from 62.4% in 2019 to 76.1% in 2020.

The current 78.4% debt-to-GDP ratio as at the end of November 2021 indicates rather a reduction in the rate of debt accumulation (i.e. declined by a half to 18% as at November 2021 from 34% in 2020). This attests to an improvement in our debt and liability management, contrary to what the article seeks to suggest.

Furthermore, with the positive Primary balance target for 2022 – one of the key fiscal anchors in 2022 - Ghana should see improved stability and reduction in the debt to GDP ratio in 2022 and through the medium term.

It is most unfortunate to note that foreign investors and market participants are on edge following the impasse in Parliament, in

relation to the passage of the E-levy Bill. The market seems to now be pricing into our bonds the perceived risks of having a slim majority in Parliament and the consequences thereof.

The markets also seem to be concerned that this might impact Government’s ability to successfully pass and implement some of its major revenue policy measures as presented in the 2022 Budget.

The Ministry would like to state that a healthy debate in a vibrant Parliament is a critical part of Ghana’s growing democratic credentials and by no means should it be deemed to be a fiscal risk. Government is confident that when Parliament resumes sitting this month, the E-Levy Bill, which has already been discussed and approved by the Finance Committee of Parliament, will be passed.

The Ministry also wishes to state that the Government is on track to meet its non-oil Tax Revenue target for 2021 of GHS 57.05bn (13.16% of GDP). The 2022 non-oil Tax Revenue target of GHS 80.3bn moves us to a tax revenue to GDP of approximately 16%, which is still below our medium revenue target of 18-20% of GDP. We are, however, confident that we can meet the 2022 revenue target and that the E-Levy will help us accomplish this. The Ministry will continue to monitor and adjust expenditures accordingly, as has been done successfully in the past, using the commitment

control (including the quarterly allotment mechanism) tools at our disposal.

Ghana does not face any imminent external imbalances or reserves shortfall. The reserves, at over 5x import cover, is well above our internal target of 4 months and better than the average over the previous two decades. Foreign Financing of the 2022 Budget, of US$1.5 billion is also bolstered by the balance of SDR’s of approximately US$700 million.

The balance can be financed through the use of alternate instruments including term loans, bilateral and multilateral loan facilities and a tap-in of our domestic dollar bonds, amongst others. In December 2021, the Ministry of Finance issued a 5-year domestic dollar bond at 6%. These bonds are currently trading at a yield of ~5.5% on the local market.

Like all emerging market countries with foreign investor participation in our domestic debt, Ghana is susceptible to a tighter US Monetary Policy stance. However, Ghana has healthy reserves of over 5 months of import cover amidst reduced levels of foreign investor participation in our domestic market. As at November 2021, our data indicates that only 16.55% of our domestic debt is held by nonresidents investors as compared to 38.44% and 30.01% in 2017 and 2018, respectively.

Whereas we acknowledge that the current trading levels of our Eurobonds have widened, we do not believe that it is warranted nor do we believe that it reflects the strong underlying fundamentals of the Ghanaian economy and our rapid rebound post the Covid-19 pandemic as evidenced by the healthy GDP growth of 6.6% for the third quarter alone and an average of 5.2% for the first three quarters of 2021. While the end year growth targets for 2021 has been revised to 4.4%, high frequency indicators suggest a continued strong momentum in economic activity in Q4.

Despite the global challenges that exists on the back of the covid-19 pandemic and especially in emerging markets, with risks such as financial stress and sluggish progress on vaccination as recently cited by the World Bank, the Ministry would like to reassure all its investors that Ghana’s fundamentals remain strong as attested to by: our growth in Q3-2021; the Ghana Revenue Authority exceeding its target in 2021; and our strong reserves position. Ghana will continue to show leadership in these difficult post-Covid era to build a sustainable, entrepreneurial nation while ensuring that growth, job creation and fiscal consolidation are not compromised, in line with the President’s vision of a Ghana Beyond Aid.

18

Aviation

WEDNESDAY JANUARY 19, 2022

Emirates does it again, scaling up and circling around the Burj Khalifa to put Expo 2020 Dubai on top of the world’s travel agenda

K

eeping with Dubai’s ‘nothing is impossible’ spirit, Emirates is soaring up and around the Burj Khalifa for another edition of its viral ad campaign, this time taking it one spectacular step further with the masterful addition of the iconic Expo 2020 Dubai A380. Emirates hit the global headlines and social media feeds of millions in August 2021 when it took its brand message to new heights atop the Burj Khalifa.

This time, the brave stuntwoman is standing at the pinnacle of the Burj Khalifa

by Emaar once again, holding up message boards with an invitation to visit the world’s greatest show, Expo 2020 Dubai, on the iconic Emirates A380.

She then gestures to her ‘friend’, the eye- catching Emirates A380 wearing the Expo 2020 Dubai livery, which gracefully soars in the background as she stands firmly on the spire of the world’s tallest building. The ad also features dynamic aerial views of Dubai and its iconic skyline, and culminates in a flypast over the impressive Al Wasl dome at the Expo 2020 Dubai site. Click here to watch the behind the scenes video and what went into making the ad.

Sir Tim Clark, President Emirates Airline said: “Now at the halfway mark of its sixmonth run, the excitement and momentum around Expo 2020 Dubai remain strong. Our latest campaign boldly carries the Expo message and invites people to come and experience what is

truly the world’s greatest show.

There is nowhere else right now that offers the raft of attractions, top-class entertainment and music, riveting sports, vibrant country and themed pavilions, a thriving culinary scene and much more – all in one place.

Dubai and the Expo are already top attractions and our aim is to give global travellers even more reasons to choose Emirates and Dubai for their upcoming winter and spring holidays.”

While the ad looked like it was shot effortlessly, the whole project involved in-depth planning and meticulous execution involving stakeholders across Dubai’s aviation eco-system, with a strong focus on safety at every juncture when conducting the low flying manoeuvres.

The carefully choreographed flypast involved the A380 flying at a low altitude of only 2,700 feet, the exact height of Burj Khalifa by Emaar. The aircraft also flew at a very low speed of 145 knots. To put that into perspective, the average cruising speed of an A380 is around 480 knots. The low speed ensured the aircraft could efficiently and continuously circle around the Burj Khalifa and achieve a tight radius without drifting away. In total, the Emirates A380 circled the Burj Khalifa 11 times to get a right selection of shots for the ad.

The aircraft also appeared as if it was flying very close to the stuntwoman as she was standing on the Burj, when in fact it was over a half a mile away.

During the planning stages,

Emirates pilots, Flight Operation teams, Air Traffic Controllers, helicopter pilots, drone operators and the filming teams, the Emirates marketing team, the Emaar team, regulatory teams as well as the UAE GCAA and DCAA worked closely to discuss and deliberate every detail and aspect of the mission, choreographing the flight plan, running risk assessments, accounting for air traffic, areas over flown, as well as gauging potential wind and weather conditions in order to secure the necessary approvals. Pilots also trained multiple times in the A380 flight simulator to ensure every visual reference point was covered and tested and every manoeuvre checked prior to the mission.

The simulator visits also helped establish the way all stakeholders would communicate during the flypasts and filming to ensure everyone was operating in a safe environment.

In addition, the team closely liaised with Dubai ATC to ensure that all activity was protected by blocking the airspace through a Temporary Restricted Area during all of its holding patterns.

The filming and low flypasts were conducted on 13 and 14 October 2021, and the timings of the flights were scheduled outside of the peak departures window at Dubai International as a further measure to mitigate any risk.

The new global multi-channel campaign will run in 12 languages, debuting across 19 countries covering TV, cinema, digital and social media platforms. The ad is

part of a wider USD $20 million commitment Emirates has made to help create awareness, generate excitement and ultimately drive more visits to Dubai and Expo 2020 Dubai.

Since Dubai reopened for business and tourism in July 2020, the airline has run close to 15 major global and regional brand and tactical campaigns across 25 countries, starting with its ‘Dubai is Open’ campaign; its partnership with celebrity powerhouse Chris Hemsworth promoting Expo 2020 Dubai’s endless possibilities ahead of the event’s opening date; both its “Emirates crew on Burj Khalifa” ads and its latest winter campaign highlighting the plethora of activities Dubai has to offer for travellers seeking to escape the cold. The airline has also promoted Expo 2020 Dubai through a number of global tactical campaigns, including complimentary day passes for every ticket booked, earning Skywards Miles for time spent in Dubai during the Expo period, early bird discounts, family and SME offers, amongst other special promotions.

Running until 31 March 2022, Expo 2020 Dubai brings the world together, hosting spectacular events that have encouraged repeat visitation, as it provides a platform for collaboration, showcasing human advances and the latest in technology, culture, art music, gastronomy, sports and much more, in addition to over 190 country pavilions to see and experience.

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Feature

WEDNESDAY JANUARY 19, 2022

Breaking COVID's grip

José Manuel Barroso

C

OVAX and the other international organizations committed to vaccine equity cannot end the COVID-19 pandemic without the continued support of governments, industry, and civil society. By working together, the world has a chance to tame the coronavirus once and for all.

Two years into the worst pandemic in a century, it is tempting to think that the world is stuck in a time warp, unable to shake off a virus that has so far killed more than 5.5 million people and wrecked countless livelihoods. But the truth is that in the 15 months since the COVID-19 Vaccine Global Access (COVAX) facility first gained the support of the international community, much has changed.

In September 2020, we did not know whether scientists would be able to develop a safe and effective COVID-19 vaccine.

Now we have several. Nor did we know back then that industry would succeed in scaling up production. But, in the event, 11 billion doses were manufactured last year.

Sadly, these successes also serve to highlight where the world has failed in its efforts to

combat the pandemic. Although the world produced enough COVID-19 vaccine doses in 2021 to vaccinate every adult on the planet, more than three billion people, most of them living in lower-income countries, have yet to receive their first dose.

High-income countries have an average vaccination rate of over 75% and are now focusing on booster programs. In Africa, by contrast, roughly 10% of the population is fully vaccinated, on average, and health systems are still catching up with primary vaccinations.

COVAX’s recent delivery of its one billionth COVID-19 vaccine dose represents significant progress toward increasing supply, ensuring equitable access, and thus remedying the current appalling global disparity.

This milestone also shows that COVAX – and multilateralism – can work, despite hoarding or restricting exports of vaccines and ingredients by some governments.

Given this momentum, it is essential that COVAX – a partnership established by the Coalition for Epidemic Preparedness Innovations, the World Health Organization, UNICEF, and Gavi, the Vaccine Alliance – continues to receive

the world’s backing. Otherwise, as rich countries press ahead with booster rollouts in the face of the Omicron variant, lowerincome countries risk falling even further behind.

Such an outcome would constitute not only a moral failure, but also a public-health catastrophe. We all know by now that no one is safe from COVID-19 until everyone is safe. Until we can vaccinate people in all parts of the world, the coronavirus will continue to mutate, resulting in the emergence of new and potentially more dangerous variants. There is a significant risk that we will become trapped in an endless cycle of booster vaccinations, chasing the virus rather than getting ahead of it.

Alternatively, by protecting people everywhere, we can reboot the global economy and fully resume trade, commerce, and travel. This will require renewed commitments by highincome countries and vaccine manufacturers to put orders for those most in need first. Providing equitable vaccine access also means ensuring that COVAX has the flexibility to respond to future needs, including those related to booster programs, variant-adapted vaccines, or simply additional doses.

Progress in combating the pandemic over the last year has been slower than everyone involved in COVAX – including me, as chair of Gavi – wanted and expected, and many lessons need to be learned. And despite the widespread and growing perception that Omicron is somehow less dangerous than previous variants of this coronavirus, we are still very much in the midst of a global crisis.

But while further supply-side and demand-side challenges will arise in 2022, we are at last in a position where breaking COVID-19 is a realistic prospect.

Speed is of the essence, and the faster we limit the virus’s ability to spread, the sooner we will end the cycles of havoc it has wreaked on our societies and economies.

That requires ensuring rapid, fair, and equitable access to COVID-19 vaccines to people in all countries.

The delivery of COVAX’s one billionth dose proves that, when push comes to shove, we can collaborate effectively to tackle massive global challenges. But this achievement is also a timely reminder that much more remains to be done.

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Markets

WEDNESDAY JANUARY 19, 2022

WEEKLY MARKET REVIEW FOR WEEK ENDING JANUARY 14, 2022

CONTINUED ON PAGE 21

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WEEKLY MARKET REVIEW FOR WEEK ENDING JANUARY 14, 2022

22

BUSINESS24.COM.GH WEDNESDAY JANUARY 19, 2022

NO. B24 / 294 | NEWS FOR BUSINESS LEADERS

MONDAY MAY 3, 2021

WEDNESDAY JANUARY 19, 2022

Adom City Group poised to provide affordable housing units to low-income earners

T

he Chief Executive Officer of the Adom Group of Companies, Dr Bright Adom has reaffirmed the company’s commitment to providing affordable housing units to low-income earners.

This, he said, would help bridge the national housing deficit which is in excess of two million units as well as enable lowerincome earners to own decent accommodation.

Dr Adom, who was speaking to the media on the sidelines of the company’s annual Thanksgiving Service held at the Church of Pentecost, Rhema Worship Centre in Accra, said despite the numerous challenges that had emerged in the real estate business as a result of the COVID-19 pandemic, his outfit remained determined to provide housing units to low-income earners.

The event brought together workers of the Adom City Group and some of its customers as they celebrated their stellar performance in the year 2021 and awarded some deserving staff.

Dr Adom said: "The objective of the company is to develop highquality homes for low-income

earners to help bridge our huge housing deficit. We will continue to overcome the pandemic challenges and build more houses especially for the low-income earners so that they can have a place to live."

"The thanksgiving service is to thank God for his goodness and mercies in the year 2021 having recorded some good sales around

the country. We are proud to have delivered some positive results despite the pandemic challenges of the past two years,” he added.

Apostle Prof. Opoku Onyinah, the former Chairman of the Church of Pentecost, who presided over the Thanksgiving Service commended the Adom City Group for their gesture of celebrating the blessing of God in

CLOGSAG strike begins tomorrow

T

he Civil and Local Government Staff Association of Ghana (CLOGSAG) has directed its members to proceed on an indefinite nationwide strike

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

beginning January 20, 2022.

The strike action is to back demands by the association for better conditions of service.

A letter issued by the Executive Secretary of CLOGSAG, Isaac

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

Bampoe Addo, on Monday, January 17, addressed to its members, said the decision to embark on the strike had been taken by the National Executive Council of the association and that due notice has been served on all relevant stakeholders since December 22, 2021.

According to the association, there has been undue delay in finalising negotiations on the conditions of service of its members which it finds worrying and unacceptable. It is no longer able to bear the pressure, hence the declaration of a strike.

“By this letter, all CLOGSAG members in the Ministries, Departments, and Agencies as well as the Metropolitan,

business24.com.gh

their endeavours.

He said their gesture would further invoke the presence of God in their dealings and would make them progress, having urged them to be kind to their clients.

Award-winning gospel musician Diana Hamilton graced the Thanksgiving Service with a powerful song ministry.

Municipal and District Assemblies are informed to stay at home from Thursday 20th, January 2022until further notice.

“In similar vein, by this letter all Chief Directors, Heads of Department, Regional Coordinating Directors, Metropolitan, Municipal and District Coordinating Directors are duly informed,” the letter said.

CLOGSAG is a registered trade union and the mouthpiece of workers in the Civil and Local Government Services and seeks to provide representation for government workers on matters affecting the Service.

The association in December 2021, served notice it may embark on a strike if its demands for a relook of the salary structure of its members were not addressed.