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Cash and gold investments
Ghanaian and Italian agribusiness firms look forward to fruitful partnerships after agribusiness digital lab See page 7
See page 9
BUSINESS24.COM.GH
NO. B24 / 218 | NEWS FOR BUSINESS LEADERS
Eni boosts reserves to 1.1bn barrels with new discovery By Benson Afful affulbenson@gmail.com
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talian energy giant Eni says it has made a significant oil discovery on the Eban exploration prospect in Cape Three Points (CTP) Block 4, offshore Ghana. The company said in a
Nigerian High Commissioner calls for end to trade restrictions By Benson Afful affulbenson@gmail.com
The Nigerian High Commissioner to Ghana, Gambo Yusuf Hamza, has said Economic Community of West African States Cont’d on page 3
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Parliament approves $200m loan for Covid-19 response By Eugene Davis ugendavis@gmail.com
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arliament has approved a loan of US$200m from the World Bank to provide additional funds for the Ghana Covid-19 Emergency Preparedness and Response (EPR) project. The financing will enable government fund the
Kwaku Kwarteng, –chairman of Parliament’s Finance Committee
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ACET report advocates insurance scheme for smallholders By Eugene Davis ugendavis@gmail.com
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frican governments have been urged to develop sustainable agricultural insurance schemes to help improve the fortunes of smallholder farmers. Cont’d on page 5
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Editorial / News
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Editorial
Calls for agro insurance products for small-scale farmers apt and timely
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mallholder farmers are the pillar of Ghana’s agrarian sector and their contribution to food security cannot be underestimated. Protecting the sweat of smallholder farmers is a noble call especially at a time that an unprecedented pandemic continues to wreak havoc across the food production value chain. A study convened by the Africa Centre for Economic Transformation (ACET) across the agricultural value chain has proposed the need for specialised agro-insurance products for these critical economic actors. At a virtual policy learning event Dr. Gatune, Dr Julius Gatune, Project Team Lead of the Smallholder Voices
in Policy Discourse - Market Linkages Study, expressed that risk-mitigating products for smallholder farmers would court the needed innovations, as well as strengthen food security efforts. The study showed that innovations are needed across three domains if traditional markets challenges are to be addressed, namely; technology, policy/social innovations and business model innovations. Also, the need to improve access to credit to help smallholder farmers to produce a surplus for the market was aptly captured in the study. The role of insurance in every business activity is readily known, and for that matter, well-
structured and tailored agrobased insurance products or schemes will go a long way to secure the sweat and toils of our gallant farmers. Banks’ lending to agricultural investors has always been on the low and that’s because the sector is labeled as high risk or no-go area for universal banks. A thought-through and wellimplemented insurance scheme will de-risk the agricultural sector and help attract the much-needed expertise and investments that will go a long way to reposition the nation’s dominant sector as the backbone of the economy. This is both a wake-up call and a huge opportunity that must be exploited by insurers.
Eni boosts reserves to 1.1bn barrels with new discovery Continued from cover
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statement that the new discovery has been assessed following a comprehensive analysis of extensive 3D seismic datasets and well data acquisition, including pressure measurements, fluid sampling and intelligent formation testing with state-ofthe-art technology. “The acquired pressure and fluid data (oil density and gas-to-oil ratio) and reservoir properties are consistent with the previous discovery of Akoma and [the] nearby Sankofa field.
The production testing data show a well deliverability potential estimated at 5,000 bopd, similar to the wells already in production from the Sankofa field,” the company said. Eni said the Eban-1X well is the second well drilled in CTP Block 4, following the Akoma discovery. Preliminary estimates place the potential of the Eban-Akoma complex between 500 and 700m barrels of oil equivalent (Mboe), it added. The Eban-1X well, it said, is located approximately 50 kilometres off the coast and about
8 kilometres northwest of Sankofa Hub, where the John Agyekum Kufuor FPSO is located. It said the estimated hydrocarbon in place between the Sankofa field and the EbanAkoma complex is now in excess of 1.1bn barrels of oil equivalent (Bboe), and further oil in place upside could be confirmed with an additional appraisal well. The company said due to its proximity to existing infrastructures, the new discovery can be fast-tracked to production with a subsea tie-in to the John Agyekum Kufuor FPSO, with the aim to extend its production plateau and increase production. It said the Eban discovery is a testimony to the success of the infrastructure-led exploration strategy that Eni is carrying out in its core assets worldwide. The joint venture of CTP Block 4 is operated by Eni with a 42.469 percent stake, on behalf of partners Vitol with 33.975 percent, GNPC with 10 percent, Woodfields with 9.556 percent, and GNPC Explorco with 4 percent. Eni has been present in Ghana since 2009 and accounts currently for a gross production of about 80,000 barrels of oil equivalent per day.
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Parliament approves $200m loan for Covid-19 response Continued from cover procurement of vaccines to inoculate about 7.6m people. Presenting the report of Parliament’s Finance Committee on the loan agreement, the chairman, Kwaku Kwarteng, said the facility will enable Ghana prevent, detect and respond to the threat posed by Covid-19 and strengthen national systems for public health preparedness. “The pressing need to activate a robust Covid-19 vaccination programme as well as strengthen health facilities in Ghana has informed the restructuring of the interventions under the previous EPR 1 and 2 projects funded by the World Bank, hence the need for this additional financing,” he explained. Regarding the cost of the vaccines to be procured, Mr. Kwarteng said the committee was informed that each dose would cost an average of US$10.55. Minority Leader Haruna Iddrisu was not impressed with the pace of the country’s
vaccination programme and also demanded accountability from the government for the utilisation of Covid-19 funds approved by Parliament last year.
“We want to know how much additional masks were procured. What type of mask was it and how much did it cost the taxpayer?” In response, Deputy Majority
Leader Alexander Afenyo-Markin said the detailed breakdown of utilisation of Covid-19 funds was contained in the committee’s report.
Nigerian High Commissioner calls for end to trade restrictions Continued from cover (ECOWAS) governments must do more to encourage trade within the sub-region. He said Africa contributes just one percent to global trade, and for the continent to contribute
more it has to trade more with itself first before it goes to the global stage. He bemoaned the persistence of trade barriers in Africa, especially West Africa, where customs restrictions limit the free flow of goods across borders.
President Akufo-Addo is the current chairman of ECOWAS.
“With my two months’ experience here in Ghana, I have complaints from some Nigerian traders about problems they encounter with customs check points along the borders between Ghana, Nigeria, Togo and Benin. And then, I also have complaints
from Ghanaian traders going to Nigeria from Ghana or coming to Ghana from Nigeria. “So I think the governments [of ECOWAS] need to do more on these customs restrictions at the border, because it is only through this that trade can be promoted within the sub-region.” The High Commissioner said most of Ghana’s exports go to destinations outside the continent even though there is a huge market within the sub-region with a youthful population. For instance, he said, Nigeria has a population of over 200m people, with Nigeria and Ghana contributing 70 percent of the Gross Domestic Product (GDP) of West Africa. “When you look at the huge market we have in Nigeria, we cannot continue to neglect it; so I think we should do more about that and boost trade within the sub-region,” he advocated.
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ACET report advocates insurance scheme for smallholders Continued from cover This proposal was part of a number of recommendations of a study on market linkages in agriculture, entitled Smallholder Voices in Policy Discourse Market Linkages Study, by the African Centre for Economic Transformation (ACET). Presenting the findings of the study at a virtual policy learning event, Dr. Julius Gatune, the project technical lead, said lowering the risks of farming by using risk management products like insurance would help catalyse and scale up needed innovations to inform policy actions. He said innovations are needed across three domains— technology, policy or social innovations, and business model innovations—if traditional market challenges are to be addressed. The study, which reviewed key and emerging issues in markets in Ghana and Kenya, and innovations needed for
improving market access, argued that organising farmers better and increasing their networking capacity would equip them with the capability to use Information Communication Technologies (ICTs), especially to access online markets. Another finding of the study, according to Dr. Gatune, was the need to improve access to credit
to help farmers produce surpluses which they can market as well as the need to improve trust between farmers and traders. Dr. Gatune added there was the need to upgrade traders to move from pure opportunistic traders to more organised and capitalised logistics service providers and commodity traders. This would require consolidation of the
sector to a few well-capitalised traders, he said. Storage was another challenge for smallholders, Dr. Gatune said, with most farmers using their homes as storage facilities. In Ghana, the study found that 40 percent of farm products that are not sold are either consumed or given out to neighbours. Similarly, in Kenya, about 40 percent of farmers reported either throwing away or not harvesting their products.
SuperYogo, FanYogo win big at 2021 Marketing World Awards
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anMilk PLC, Ghana’s leading producer of nutritious and refreshing milk-based and dairy-based food products, has won top honours at the 2021 edition of the Marketing World Awards. SuperYogo, the new fortified frozen yoghurt from FanMilk has been adjudged as ‘Best
New Product of the Year’, while FanYogo’s recent advertising campaign, called ‘Shine Your hustle’ won the Marketing Campaign of the year. The awards are in recognition of the brands’ performance and are based on a comprehensive criteria to ensure best in class marketing execution is recognized.
SuperYogo is an innovative product fortified with Vitamin B6 &D to support the immune system. FanYogo Shine Your hustle is an exciting communication campaign that features a yoghurt seller, a bofrot seller and a trotro mate, proudly showing off their hard work. Both introductions have resonated strongly with
Ghanaians. Now in the tenth year, Marketing World Awards (MWA) recognizes outstanding organizations and individuals that have delivered superior product value to the market and exhibited excellence in upholding concrete marketing strategies, display uniqueness and innovativeness, among offerings, convey clear messages to its consumers, and driving distinctiveness. Commenting on the awards, Brand Manager, Eric Kumah said, ‘this award is dedicated to the many families who have accepted our products over the years. We appreciate the opportunity to serve you. In times like this, health is key, that is why FanMilk will keep delivering the highest quality nutritious products for our people, in line with our one planet one health agenda’. The tenth edition of the Marketing World Awards was held on Friday July 02, 2021 at the Movenpick hotel in Accra. The event was graced by leading personalities in the corporate sector in in Ghana, Nigeria, Ivory Coast among others. Marketing World Award is organized by Instinct Wave Ltd.
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Ghanaian and Italian agribusiness firms look forward to fruitful partnerships after agribusiness digital lab
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eading Italian agribusiness firms have held promising business-to-business (B2B) meetings with Ghanaian agribusiness enterprises through the Ghana-Italy Agribusiness Digital Lab, organized by the Italian Trade Agency (ITA). About 27 Italian companies took part in the meetings and exhibited Italy’s cutting-edge technologies and products to their Ghanaian counterparts, with a focus on Agricultural Machinery; Cold Chain and Logistics; Seeds, Greenhouse and Irrigation; and Sorting, Processing and Packaging. The Ghanaian enterprises comprised over 50 firms operating along the agribusiness value chain, ranging from input suppliers to farmers/growers, agricultural trading companies, agro-processors, and retailers. A number of agribusiness associations also took part in the meetings, which the Ghanaian participants generally described as fruitful and full of promising opportunities for commercial partnerships with the Italian firms. “As a company, the virtual
B2B meeting was a gold-mine opportunity given to us. In fact, it was a great program because the hustle we need to go through to get in contact with the right companies and the right persons has been solved by the program,” said Eric Kwabena Agyei of 3E Farms and Foods. Commenting on the Italian technologies exhibited, he added: “Italian machinery technology is the best in the world and is second to none. On any day we shall go for Italian technology. Fortunately, it has proven itself over the years.” Lucy Kyerede Quainoo, of Agribusiness Value Chain Federation, also said: “The products and services being offered by the Italian companies
are excellent and timely in the agriculture and agribusiness sector, and in the entire value chain from production through to manufacturing to trade. I see opportunities for collaboration with all three companies I spoke to and look forward to further engagements.” Anthony Morrison, CEO of the Chamber of Agribusiness Ghana, also commented: “Italian technologies are robust and sustainable technologies that Africa and Ghana should adopt. The technology shows more superior quality and advantage over some known ones. The companies are also willing to provide some level of skills training for prospective customers.”
Looking ahead to future partnerships, he added: “I’m hoping to visit about 4 prospective companies once the Covid-19 pandemic is over. We look forward to sealing a business with two or more companies from Italy.” For his part, Alessandro Gerbino, ITA Director for West Africa, said: “Italy has a lot to offer Ghana’s agribusiness market, from technology solutions to skills transfer and training. That is why we organized the Digital Lab as a platform to deepen engagement between the two countries’ agribusiness sectors and make Italian technologies easily accessible to the Ghanaian market.” To promote skills development, ITA is awarding scholarships for an MBA in Impact Entrepreneurship and Innovation to two of the Ghanaian entrepreneurs who participated in the B2B meetings. The MBA is a degree programme offered by the University of Professional Studies, Accra (UPSA), and E4Impact Foundation, Università Cattolica del Sacro Cuore of Milan (Italy), starting in September 2021.
TGR Factory Ghana, Innohub partner to raise funds for bamboobased T-roll factory added. commenting on the partnership,
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he Good Roll Factory Ghana LTD (TGR), a subsidiary of The Good Roll Holding of The Netherlands, has signed an agreement with Innohub Limited to provide capital raise support and management support services towards the establishment of the first fair trade factory in Africa that makes sustainable toilet paper from bamboo. The Good Roll produces and supplies recycled toilet paper that comprises 100percent recycled paper, without chlorine, dyes, and fragrances, making it environmentally friendly. Currently setting up a factory in Ghana, the company looks to
produce toilet paper that will solely contain bamboo and will be the first company to make bamboo toilet paper in Africa. In choosing Ghana, chief executive of TGR Faisal Ahmed explained that Ghana is the gateway to West Africa and has an abundance of bamboo that can be potentially utilized without any adverse environmental conditions. Through the purchase of the bamboo, farmers are being provided with a new source of income whilst setting up the factory in Ghana will also offer more employment and income opportunities for the youth, he
In addition to all the factory work, a unique packing line for packing the toilet paper will also offer employment opportunities targeted at women over 40 who cannot find jobs in the current labour market. Producing locally, the Good Roll will decrease the importation of toilet paper into Ghana with the nation currently importing every toilet paper brands on the market. The Good Roll is in partnership with the Good Roll Foundation building sanitation facilities throughout Ghana. The organisation will also invest in training programs for farmers to produce bamboo sustainably and efficiently. Innohub is a business accelerator, management consulting, and impact investment platform that supports small and growing businesses to become sustainable, scalable and investment ready, and match them to the capital needed for growth. Chief Executive Officer of Innohub, Mr. Nelson Madiba Amo,
indicated that Innohub was excited to work with TGR whose solutions touches on the three cardinal points of impact: planet, people and shared prosperity. Innohub is currently engaging various local and international investors for TGR’s rollout in Ghana. The Good Roll Factory already has attracted a couple of local investors including Black Stars captain Andrew Dede Ayew. Apart from investing financially, Andre Dede Ayew will also be one of the brand ambassadors of TGR. Being biodegradable, bamboo is the most sustainable alternative to wood; it is a type of grass, so there is no need to replant after harvesting. Sustainable production to make bamboo into toilet paper requires water and other materials to be collected, reused, and recycled. Therefore, bamboo production not only consumes less energy but also about a fifth of the water needed to convert wood pulp into the same amount of toilet paper. Bamboo is a raw material that is a much more sustainable choice for the planet.
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Cash and gold investments
By Kofi Pianim
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arch 2020 saw market prices pull back to 2008 global financial crises levels on account of the Covid-19 global pandemic. Kofi Pianim, the Head of Global Markets at First National Bank shares some insights on the outplay of the cash and gold market. “Sustained periods of market volatility and equity selloff left investors scrambling for safe haven assets such as cash instruments and certain commodities including the yellow metal”, says Kofi. Due to their largely negative correlation with other financial assets, commodities such as gold are very useful for managing portfolio risk, helping to maximize the benefits of portfolio diversification especially during periods of high market uncertainty. The figure below shows the trend of gold prices over the past 20 years. Looking back at 2008, gold was negatively correlated to market performance, meaning when markets went down the gold price increased. The reason for this is that investors pulled their funds from equities and invested in gold, increasing the demand for the commodity and thus increasing the price. The same pattern emerged in March 2020 where global equity markets experienced another mass selloff. Investors with exposure to gold during 2008 and 2020 were effectively hedged in reducing some of the downside equity risk when market sell off occurred. Rising prices of commodities such as gold have positive impact on net bullion exporters such as Ghana. Ghana is one of the world’s major exporters of gold, exporting a total value of USD
6.8bn worth of gold in 2020, up from USD 6.2bn in prior year according to Bank of Ghana data. The rising price of gold also positively impacts BoG’s gross international reserves, allowing the country to record a higher import cover. This favourably positions the Central Bank to intervene on the local FX spot and forward markets as it deems fit. In addition to its gold exports, Ghana produces other commodities such as cocoa and crude oil for the international markets. As can be seen from the figures below, both cocoa and gold prices initially took hits in March 2020 due to the covid-19 pandemic. However, gold quickly recovered, and helped to cushion the shortfall in Government revenue from the export of cocoa. The relatively strong performance of the prices of the country’s exports in the wake of the covid-19 pandemic helped the Central Bank to intervene in both the FX spot and FX forward markets. In 2020, the Central Bank sold about USD 715mio in cashcovered auctions on the back of a strong gross international reserve bases. In 2021, the banking sector regulator plans to sell USD 775mio in FX forwards. Cash is another asset class that can be used as an effective tool to hedge equity risk: Cash as a diversification tool Investing in the Ghana Stock market and holding cash instruments might appear to be mutually exclusive options on the surface. However, cash instruments play a more crucial role in the successful diversification of the investor’s portfolio. In times of economic downturn and market pull backs,
cash instruments, being defensive assets, can play a hedging role in protecting wealth from equity downside. For example, whereas the Ghana Stock exchange recorded a 14% fall in its All Share Index in 2020, the yield on the 1-yr GoG tbill was +16.98%. Having cash in a portfolio, means being able to take advantage of opportunities when they present themselves in the market. Warren Buffet quoted cash as “Cash is to business as oxygen is to an individual, never thought about when present, the only thing in mind when absent”. In times of market volatility and increased risk, cash instruments should be considered by investors as a diversification and risk mitigation tool. Adding a cash element to a portfolio allows an investor to decrease portfolio risk and secure an additional income stream in the form of interest. Long-term investors see cash instruments as a defensive asset that produces consistent, reliable returns in a risk averse manner. However, this asset class can also be used by investors to go on the offensive. Investors with large amounts of cash in their portfolio can easily take advantage of investment opportunities and potentially buy assets of value at discounted prices when markets pull back. Cash as an asset class is extremely liquid and can be used to purchase assets when needed. Just having exposure to equities will mean having to sell those shares to acquire another investment. This can mean selling shares at the incorrect time when market prices do not reflect value. Having cash exposure can result in an investor having a war chest for when the right opportunity presents itself in the market, as well as receiving stable, consistent returns on the
cash instrument utilised. Types of cash instruments: There are a number of different cash instruments that can be utilised in achieving investment goals. A cash investment is far more than just a traditional savings account. Money market accounts and funds can be utilised to achieve higher cash returns than a traditional savings account. Investors receive higher returns on account of the minimum deposit required as well as maintaining certain balance amounts. Money market funds like mutual funds give investors access to different cash securities, however these securities are all liquid and maturing within 12 months. These types of assets allow investors to gain exposure to both the Repo rate as well as short term fixed interest. Investors can also look at investing in instruments for a certain period through a call or fixed deposit. The difference between these instruments is that a call account generally has a variable rate of return, where a fixed deposit allows an investor to secure the interest rate for the duration of the investment. Both assist investors in diversifying risk through reliable and consistent interest streams. The author
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LG refrigerators deliver smarter culinary life and more hygienic food management
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ew will likely name the unassuming refrigerator as the item in the home that has transformed family life. But refrigerator innovation over the past 60 years has transformed this appliance from a lowly kitchen box to become highly functional, ergonomic and environmentally-friendly product that it is today. With the technological advancements in today’s refrigerators, consumers have come to hold these products to a higher standard. And to meet the expectations of today’s demanding consumers, appliance makers are focusing more than ever on enhancing convenience by improving usability and accessibility. Appliances are evolving to suit consumer needs as they appear, and the most innovative manufacturers are the ones that are able to predict user trends and meet their demands before they arise. Time and time again, LG Electronics has established a reputation as a company that is unafraid to push the boundaries of innovation and challenge convention. Its dedication to consistently work to bring convenience-enhancing features to consumers has resulted in a number of breakout products including the Home Bar and the InstaView Door-in-Door™ with Inverter Linear Compressor to boost overall energy efficiency and performance. LG Electronics is helping consumers realize their dream kitchens with the InstaView™ Door-in-Door™ refrigerator with UVnano and NeoChef Microwave. Adding to an already comprehensive list of features, these new kitchen appliance models demonstrate LG’s commitment to giving consumers more choice and helping them to live their best hygienic, culinary lives. LG’s newest kitchen innovation uses the power of light to improve health and hygiene. LG manufactures LG`s own compressor based on durability and high technology. Now we present 10-year warranty not only Inverter Linear compressor but also Inverter, Recipro compressor with our reliable technology. Compressor of the product is made by LG and we manufacture compressors in LG's own facility. It`s hard to find the brand which manufactures compressors by themselves though. LG InstaView Door-in-Door refrigerator with UVnano utilizes
ultraviolet LED light technology to remove up to 99.99 percent of bacteria and viruses. Featuring LINEAR Cooling™ and Door Cooling+™, the InstaView creates optimal conditions for fresher food. LINEAR Cooling minimizes temperature fluctuations which is the primary culprit of food spoilage and for more precise control, while Door Cooling+ evenly cools the entire refrigerator by distributing powerful airflow from strategically placed vents. The unique "Smart Inverter" technology at the heart of LG NeoChef microwave takes the guesswork out of microwaving by delivering precise power for consistent cooking, reheating and defrosting. Unlike ordinary microwaves that alternate blasts of full power or no power until the timer goes off, LG NeoChef uses precise, variable power control between 300 to 1,200 watts to evenly cook or defrost food – helping to eliminate dreaded cold centers and overcooked edges. Plus, its humidity-sensing technology determines when food is cooked and automatically turns off the microwave to help prevent the over- or undercooking of meals. According to the General Manager, Home Appliances Division, LG Electronics West African Operations, Mr. Brian Kang said; LG's iconic InstaView Door-in-Door technology helps to minimize cold air loss and extend food freshness, the LG InstaView panel illuminates the interior
of the refrigerator with just two quick knocks on the transparent glass so users can see inside without opening the door, while Door-in-Door technology helps organize everyday favorites for quick and easy access to oftenused items without having to open the entire refrigerator. The NeoChef ™ microwave is equipped with an easy and intuitive UI for enhanced userconvenience. The glossy front panel combined with a refined matte exterior highlights the minimalistic design which allows the NeoChef to seamlessly blend in with the décor of any kitchen. Moreover, LG’s Smart Inverter technology reduces cooking time while making it easier for home chefs to create tastier, healthier dishes. The technology’s linear power control ensures that food can be reheated or defrosted more evenly, also contributing to lower cooking times. The Smart Inverter also allows for creative uses, such as yogurt making, melting chocolate or butter and dough proofing. The AntiBacterial EasyClean™ Coating inside NeoChef eliminates 99.99 percent2 of harmful bacteria with just three wipes; he said. “For many families, the kitchen is one of the busiest rooms in the house, and a place where they often find their hands tied. Now consumers have even more convenience in their homes, all just by using the Wi-Fienabled features directly on the
refrigerator, connecting on their mobile phone via LG ThinQ App. If the kitchen’s the heart of the home, LG smart refrigerators with ThinQ® are the hub of the family! They help keep your kitchen, and your life, running more smoothly so you can manage it all—while keeping your cool. Our refrigerators are powered with LG’s intuitively smart ThinQ® technology, which means it goes beyond just being a fridge, to helping you manage your entire kitchen, home and life. Everything about the mobile app is easy to understand and use. Just a few clicks help personalize the app to your preferences and needs. It incorporates artificial intelligence so it can learn your habits and then adapt to suit those. The technology also monitors the energy consumption of your LG appliances to help adjust for the most efficient use While LG Refrigerators and Neo-Chef Microwaves qualifies for the ENERGY STAR rating, In the long run, you’ll be able to get a significant return for this investment in terms of savings on your energy bill. Plus, it feels good knowing you are helping the environment by lowering your energy consumption. NeoChef Microwave Oven has Inverter Technology that has enhanced it for better, faster, more efficient cooking performance while saving time and conserving energy at the same time.
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Governments need to step up efforts to meet food security
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ith less than 10 years until the 2030 deadline for achieving the UN Sustainable Development Goals (SDGs), governments need to step up their efforts to meet global food security and environmental targets, the Food and Agricultural Organization of the United Nations (FAO) and the Organisation for Economic Co-operation and Development (OECD) have said. The OECD-FAO Agricultural Outlook 2021-2030 stated that although progress towards the SDGs is expected to be made in the coming decade - assuming a fast recovery from the global COVID-19 pandemic, and stable weather conditions and policy environments - the past year of disruptions from COVID-19 has moved the world further away from achieving the SDGs. This calls for urgent attention to the factors and forces driving performance in agri-food systems, the report said. The report provided policymakers with a consensus assessment of the ten-year prospects for 40 main farm and fisheries products at regional, national and global levels, analysing the drivers of performance in the agri-food markets and helping to inform forward-looking policy analysis
and planning. The Outlook baseline projections describe expected trends based on existing policies, highlighting areas where additional effort is needed to meet the SDGs. “Ensuring food security and healthy diets for a growing global population will remain a challenge. Global demand for agricultural commodities - including for use as food, feed, fuel and industrial inputs - is projected to grow at 1.2 percent per year over the coming decade, albeit at a slower annual rate than during the previous decade. Demographic trends, the substitution of poultry for red meat in rich and many middleincome nations, and a boom in per capita dairy consumption in South Asia are expected to shape future demand,” it added. Sustainable productivity growth is key The report said productivity improvements will be key to feeding a growing global population - projected to reach 8.5 billion by 2030 – sustainably, adding that of the increases in global crop production expected in 2030, 87 percent are projected to come from yield growth, while
6 percent to come from expanded land use and 7 percent from increases in cropping intensity. Similarly, it said a large share of the projected expansion in livestock and fish production is expected to result from productivity gains. However, herd enlargement is also expected to significantly contribute to livestock production growth in emerging economies and lowincome countries. The report said trade will continue to be critical for global food security, nutrition, farm incomes and tackling rural poverty. It said on average across the world, around 20 percent of what is consumed domestically is imported. Looking ahead to 2030,
imports are projected to account for 64 percent of total domestic consumption in the Near East and North Africa region, while Latin America and the Caribbean region is expected to export more than a third of its total agricultural production. "We have a unique opportunity to set the agri-food sector on a path of sustainability, efficiency and resilience," OECD SecretaryGeneral Mathias Cormann and FAO Director-General QU Dongyu said in the Foreword to the Outlook. "Without additional efforts, the Zero Hunger goal will be missed and greenhouse gas emissions from agriculture will increase further. An agrifood systems transformation is urgently needed."
Dutch Embassy’s ‘Orange Ride, Cycle Down Carbon’ slated for July 10 By Patrick Paintsil p_paintsil@hotmail.com
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he Embassy of Netherlands in Ghana’s cycling activity to raise awareness around climate change, carbon emissions and the need for Ghana to adopt bicycles as an alternative and eco-friendly means of transport comes off on July 10. The one-day event is based on the concept of ‘Car-free Sundays’ held in capitals around the world to inspire stakeholders to consider improving the nation’s cities’ infrastructure to promote the use of bicycles. “This cycling event is a way of promoting Dutch value and policy objectives in a more fun way and it’s inspired by the new European Union priorities, especially on environment and the creation of sustainable cities. For us, it will be logical that bicycles will be part of a sustainable city by way of
promoting the use of bicycles in the day-to-today transport or commuting of every Ghanaian,” Deputy Head of Mission, Katja Lasseur, told Business24 in an
interview. People from all parts of the country who want to be part of the activity will abandon their vehicles on that day to do a 6.5kilometre bicycle ride from the premises of the Netherlands Embassy in Kanda via the Independence Square to the final stop in James Town. It will be more like a family event to drum home the possibility and benefits of Ghanaians accepting bicycles as a means of transport to reduce greenhouse emissions, improve health and wellbeing and save cost. “Bicycles do not emit carbon dioxide and by taking your bicycle, you’re leaving the car at home. It’s actually a no-brainer
when it comes to reacting to the climate change which remains a huge challenge to countries like Ghana,” Katja Lasseur added. With Ghana being one of the nations that is already feeling the effects of climate change due to excessive carbon emissions, the embassy says that the activity ties in to their goal of raising climate ambitions across the world and to help protect the country from climate change. The deputy ambassador noted: “We don’t want this to be a one-off event; we want it to create linkages between the municipalities of Accra and the Dutch government to collaborate and work together, exchange knowledge and ideas in the provision of infrastructure for bicycles.” Cycling forms an integral part of everyday life in the Netherlands making the country the most visible and suitable partner to promote the use of bicycles through public diplomacy.
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Samsung Galaxy S21 Ultra 5G awarded Best Smartphone at the Global Mobile Awards at Mobile World Congress 2021
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amsung is pleased to announce that the Samsung Galaxy S21 Ultra 5G won the Best Smartphone category at the Global Mobile Awards (GLOMO Awards) during Mobile World Congress (MWC) 2021. The annual GLOMO Awards recognise the hardware, software and services that drive innovation across the mobile industry worldwide. Samsung Galaxy S21 Ultra 5G: Best Smartphone At the awards ceremony on June 30th, the Samsung Galaxy S21 Ultra 5G was named ‘Best Smartphone’ of the past year. The smartphone, which features a professional grade camera system and bright Intelligent Display is the go-to choice for users who want to take gorgeous, detailed photos. It is also the first device of the S Series to support the S Pen, for advanced productivity from power users. With all these features packed into a sleek contour-cut design, the Samsung Galaxy S21 Ultra 5G represents the
very best of Samsung engineering. The category judges said, “The best Android smartphone Samsung has ever made with a great range of features, stunning AMOLED display, best-in-class cameras and more. This phone delivers across the board and is a worthy winner of Best
Smartphones in 2021.” Also shortlisted in this category was the Samsung Galaxy S20 FE, which brought fan-favourite features of the flagship Galaxy S20 to even more users, including the incredible AI-powered camera and beautiful Infinity-O 120Hz display.
“We are honoured to have been recognised in such a competitive category at this year’s GLOMO awards. Samsung has a long, proud history of driving innovation, and we aim to deliver devices that meet the needs of our users now and in the future,” said Lucas Lee, Managing Director at Samsung Ghana. “As the user needs continue to grow so varied and dynamic, we are committed to leading the journey in developing devices that are loved by users across the globe.” “Congratulations to all the winners and nominees of the GSMA’s GLOMO Awards 2021. You truly embody the theme of this year’s event, Connected Impact.” said John Hoffman, CEO, GSMA Ltd, “Given the challenging circumstances we’ve all faced over the last 15 months, it’s more important than ever to come together to recognise the incredible innovation and ingenuity shaping our industry, as well as the positive impact this is making on the world around us.”
Invest in Africa and Vodafone partner to advance digital capabilities
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nvest In Africa (IIA) has partnered with Vodafone Ghana to support local businesses by enhancing their digital capabilities. The partnership will provide local SMEs with tailor-made digital solutions to enable them to adapt to the disruptions caused by the COVID-19 pandemic continue interacting with customers online and grow their businesses. Some of the customised ICT solutions to be provided by IIA and Vodafone to SMEs in Ghana include: Red Trader – a simple web and mobile application designed for traders to manage their inventory, track and receive payments; and YourBusiness-Online – a proposition designed for SMEs to increase their market reach via tailored digital marketing offerings such as website design, e-commerce integration and social media marketing, among others. These and other specialised solutions will fuel local innovation, support digital financial inclusion and stimulate business and economic growth. Established in 2012, IIA operates locally in five countries across the continent (Ghana, Kenya, Senegal, Zambia, and Mauritania), supporting SMEs
through providing training and enhancing access to finance, as well as supporting job creation and local economies. The initiative will be rolled out in Ghana from 1st April for an initial period of two years and will be available to interested local SMEs regardless of size or sector. Carol Annang, IIA’s Ghana Country Director, said the partnership represents the coming together of two leading organisations both committed to Africa’s long-term sustainable growth. “Our purpose at IIA is to act as catalysts for SME growth and competitiveness, and a key part of this is uniting large corporations who want to use their local buying power as a force for good with local African businesses, with a view to attracting investment, creating jobs, building capacity and diversifying the economies in which we operate,” she said. For his part, IIA’s CEO, William Pollen, said as Africa faces its first recession in more than 25 years and the pandemic accelerating job disruption, it is more important than ever to support SMEs, which account for an estimated 80percent of economic activity and act as the primary employer in sub-Saharan Africa.
He said the digital acceleration that is happening due to Covid-19 is an opportunity for businesses to adapt, learn new skills and thrive in the new digital economy. “This is the key objective of our partnership with Vodafone in Ghana, and we hope to be able to extend this initiative to support SMEs across sub-Saharan Africa in the near future,” he added. Tawa Bolarin, Director of Vodafone Business said: “The partnership between Vodafone Business and IIA is a big win for local businesses because both institutions share a joint commitment to transforming
businesses via innovative digital solutions. We have a deep-seated passion to see local businesses succeed and now more than ever; in a business landscape impacted by the COVID-19 pandemic, it is imperative for home-grown businesses, and particularly SMEs to be able to operate seamlessly and efficiently using cutting-edge digital solutions to propel market reach, profitability and business growth. These are indeed exciting times for us and the entrepreneurial community in Ghana.”
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Corporate governance shield or sword? …what today’s banking sector leader needs to thrive
By Abena Osei-Poku, Managing Director of Absa Bank Ghana “One of the greatest failures of every generation is that it fails to read the minutes of the last meeting”. I find this quote from David A. Noebel very interesting because it summarises how seemingly simple, and let’s face it…often mundane, practices are often overlooked but in the moment of truth are central to the effective leadership of all organisations. Thinking of this, I am reminded of an old friend who would often say, “minutes from a meeting are needless until there is a dispute”. At first glance, you might be forgiven for wondering how this links to industry wide, globally applied corporate governance frameworks, but like the minutes Corporate Governance is often seen as “needless” and its importance can be overlooked. Ultimately whether you have a functioning, compliant governance framework or not may decide the fate of the companies, team and industries you lead. This is my attempt to tell you why, just as the minutes are important to the meeting, Corporate Governance is at the core of running a sustainable enterprise for all stakeholders. Unless you are studying for an MBA, textbook definitions of corporate governance will often have you asleep before you get to the end. They will likely go on about things like “structures”, “frameworks” or “processes” that distribute “authority” and “influence” within a company or institution. I prefer to think about it by asking a simple question: What are the rules of running this business? There is so much in the public domain on new directives, updated standards and best practice frameworks that its very easy to get lost, but at its core corporate governance is simply the rules applied to running the business for the good of all the relevant stakeholders. That guidance has another helpful side-effect, it guides how the business should set its objectives and how those objectives should be monitored. Viewing corporate governance as a playbook in this way helps demystify some of the “noise” out there and gives strategic credence to the “why”; and once you have that it all becomes a little clearer.
Beyond individual acts of compliance, onward to culture and nation building Having understood the strategic importance of Corporate Governance, now you need to go a little deeper to look at how to make it work. The digital natives among us will probably disagree; but for some time to come I assert that organisations will remain people led entities. As long as they do, this means we cannot just code rules into the way we operate, we also need to set, grow and nurture appropriate cultures. An accepted way of doing things, cultures are extremely powerful forces that can help, or hinder, your governance environment. The good news is that, culture is set from the top and as leaders in organisations we have direct influence in this area. Take the Enron & WorldCom scandal from the early 2000s: here, not only do we see the impact of breaking the accounting rules we also see the role of culture having permitted the aggressive risk taking that caused the losses in the first place. In setting a culture, as leaders we augment the typical formal processes of training and assessment that clearly set the governance rules with acceptable practices that bring these rules to life for everyone in the organisation. It’s here that the impact of the organizational culture can spread into other spheres of national life as these practices are often carried into other areas such as industry associations, educational institutions, homes. It really does become a way of life and if set right builds up strong, meaningful and lasting institutions. The point about the impact of understanding and buying into the why of corporate governance, and then building on this beyond the nitty gritty of ticking a box to a robust culture is so important to me because, like the often overlooked minutes at the end of the meeting, it’s not so much the minutes themselves but the culture of discipline and diligence that they create that has the power to move mountains. Consider then the power that a robust corporate governance framework has to shape the future for our companies, our nation and our continent. When I think about this, I see the importance of driving the right approach,
considering all the stakeholders, collaborating with regulators; because we are all in this together for our shared success and we wield a weapon of immense power if used correctly. Consider this viewpoint the next time you receive notice of yet another directive; remember that surely the opportunity presented in this way brings more excitement rather than trepidation. Corporate governance in the digital age Do any of you remember looking at a foldout map to navigate to an unknown destination? It was a life skill, taught at many schools not so long ago. We now have an entire generation who have never needed to do this and would not know where to start. Today, speak to your phone and it will tell you the weather, how to get to the shop, and oh, by the way, it might also place your call for you. All the time the technology behind this is learning. Its learning to discern different accents, in multiple languages; its learning to understand context; its learning to become indistinguishable from a human being. The power that technology brings is a significant strategic asset, especially for banks, but can also be deployed against society as we have seen in the increasing number of cyber-attacks. Again, a robust corporate governance framework is essential to dealing with the changing landscape. Regulators the world over have directed that businesses including banks, need to be run with a detailed understanding of the cyber related risks, appropriate defenses against those risks and continuity plans designed to ensure uninterrupted operation. Further, for industries of key importance, such as banking, these directives often set the minimum acceptable standards safeguarding entire sections of the economy. In implementing these frameworks, we are future proofing our enterprises and setting out on the road to wealth creation for generations to come. Just imagine we left such an important aspect of our lives to chance. I would struggle to look at myself in the mirror as a responsible leader. The humble minute. The
building block for years of future prosperity To my fellow leaders in all walks of life; Corporate Governance is vital to us all not only as tool to effectively run our enterprises for the good of all the stakeholders, but as a way of creating a culture of doing things well. Remember that well respected vehicle brand, VW? In 2015 the world found out that they were misleading us on the impact their product had on the environment. Sales immediately dropped, share prices halves and fines were imposed. Questions were asked, where was the governance? What were the rules of running this business? Were they insufficient or very clearly broken? In Ghana, we have seen the impact of the cost of the banking sector cleanup on our economy. Literally billions, that could have otherwise gone into wealth creation, have been used to unwind failed financial institutions. At the root of this problem was clearly a lack of corporate governance – by what rules were these businesses being run? So, we know what can happen when it goes wrong, the costs are steep; and hopefully I have shown you a vision of what this can do for our future when it goes right. In closing, I turn to the title of this short piece. Corporate governance is both the sword and the shield. The sword by which we lead the charge, inspire others and attack weak structures; and the shield that protects us from uncertainty, illconceived short-term thinking and narrowly focused outcomes. Both are necessary as we forge forward and I encourage you all to embrace and shape the future of good Corporate Governance in Ghana and the world. Thank you. The writer is Abena Osei-Poku, Managing Director of Absa Bank Ghana
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Making energy poverty history by 2030: African Energy Week 2021 prioritises energy for all
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nergy comprises a critical component of social and economic development in which the lack thereof serves as a direct hindrance to economic growth. Despite being arguably the richest continent in terms of natural resources, Africa is also considered the poorest continent in terms of development, attributed to electrification and energy accessibility challenges. The International Energy Agency (IEA) posits that approximately 620 million people in Africa do not have access to electricity, representing nearly two-thirds of the entire population. Accessibility challenges have been attributed to infrastructure deficits, the lack of critical investment, highrisk or uncertain regulatory environments deterring foreign participation, and the lack of required knowledge and skills to expand the energy and power sectors. Meanwhile, with approximately 656 million people currently living in rural or dispersed locations across Africa, the high cost of providing services to such remote places has only further accentuated the energy crisis. Despite the number of people without access to electricity gradually decreasing since 2013, the IEA suggests that the COVID-19 crisis is essentially reversing progress made in recent years to increase access to affordable, reliable, sustainable
and modern energy – an objective that forms part of the United Nations Sustainable Development Goals, of which many African countries have confirmed their commitment. COVID-19 impacts concerning lack of available finance, the shift in priority and government capital to the health sector, and implemented lockdown measures restricting project activity have caused significant disruptions, driving even more people back into energy poverty. The IEA notes that over 30 million people already connected have retreated back into energy poverty at the end of 2020, attributed to affordability challenges. Therefore, there has never been a more critical time to redirect a continent-wide focus on increasing energy accessibility. African Energy Week (AEW) 2021 comes at a time where drastic action is required in order to accelerate energy developments and electrify Africa. Representing the first and only Africa-focused energy event to take place in Africa in 2021, AEW 2021 will serve as a catalyst that will help transform the African energy space, making energy poverty alleviation a reality by 2030. AEW 2021 has placed making energy poverty history at the top of the agenda, and with universal access requiring approximately USD$ 20 billion of annual investments from 2021 – 2030, through networking and facilitating deals, the event seeks
to make this goal a reality. At the top of the agenda lies the renewable energy sector and the energy transition. With national electricity plans being implemented across the continent, and the widespread redirecting towards renewable power generation alternatives, significant developments have emerged within the solar, wind, and hydroelectric industries. Notably, projects such as the Grand Inga hydroelectric expansion project in the Democratic Republic of the Congo, the Noor Solar Complex in Morocco, and the Lake Turkana Wind Power project in Kenya represent some of Africa’s biggest renewable energy achievements and are significant contributors to alleviating energy poverty across the continent. Additionally, AEW 2021 promotes the role of natural gas in Africa’s energy transition, recognizing how gas-to-power developments can significantly increase energy access continent wide. Representing an ideal transitionary resource with its lower greenhouse gas emissions, natural gas also acts as a reliable and readily available power generation solution. Accordingly, backed by major discoveries in Mozambique, Ghana, Senegal, and Tanzania, Africa is turning to natural gas to increase energy security and expand access. Projects such as Nigeria’s Kingline Power Project, a 550MW gas-to-power facility expected
to provide 4.5 Terawatt hours of secure, affordable energy; the Temane Thermal Power Station, a 450MW gas-fired power plant in Mozambique; and Ghana’s 1,300MW gas-fired power plant all demonstrate the value of gasto-power. Therefore, driven by the continent’s significant oil, gas and renewable energy potential, and built against a backdrop of existing project success, AEW 2021 aims to directly address African energy poverty by uniting stakeholders with a common agenda, and facilitating largescale energy developments and investment across the renewable and natural gas power generation and transmission sectors. What makes AEW 2021 the ideal energy event to address energy poverty, is its multi-sectorial approach. Unlike other energy conferences, which focus on one specific industry, such as oil, AEW 2021 unites multiple sectors from across the entire energy value chain. Accordingly, AEW 2021 believes in integration, collaboration, and partnerships and therefore, presents a platform whereby transformative energy deals will be made, development finance mobilized, and energy poverty alleviated. The AEC’s focus is clear, establish a platform whereby stakeholders can facilitate productive deals, attract critical foreign capital, and drive African energy sector growth
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