Business24 Newspaper 26th May, 2021 by Business24 Online

WEDNESDAY MAY 26, 2021

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NO. B24 / 200 | NEWS FOR BUSINESS LEADERS

MONDAY WEDNESDAY MAY MAY 3, 2021 26, 2021

Nuclear power under serious consideration

Capital market investor base set to deepen By Joshua Worlasi Amlanu macjosh1922@gmail.com

he investor base of the capital market is set for a major boost with the launch of the 10-year Capital Market Master Plan (CMMP), which will drive an active participation in the equity market as well as the introduction of alternative investment options. Cont’d on page 3

GSE to regulate OTC market this year By Joshua Worlasi Amlanu macjosh1922@gmail.com

A prototype of a nuclear plant

By Benson Afful affulbenson@gmail.com

uclear power, an energy source, is currently under serious consideration in Ghana as nuclear technology has been recognised as an alternative energy source that can

generate high-capacity base load electricity at an affordable price and will enhance energy security in the country, the Nuclear Power Institute has said. A report by the institute on the “Drivers for Nuclear Energy Inclusion in Ghana’s Energy Mix” said the country

stands the chance to fulfil its industrial agenda with costeffective, reliable and resilient electricity by developing the necessary infrastructure for the inclusion of nuclear energy in the country’s energy mix.

he Managing Director of the Ghana Stock Exchange (GSE), Ekow Afedzie, says the exchange will soon properly regulate the Over-the-Counter (OTC) market, with the approval of the regulations and framework expected this year. An Over-the-Counter (OTC) market is a decentralised market in which market participants Cont’d on page 3

Cont’d on page 2

Absa Bank MD, Abena Osei-Poku recognised among Africa’s top female corporate leaders See page 13

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Editorial / News

WEDNESDAY MAY 26, 2021

Editorial

One-stop-shop business registration portal is long overdue

hana has long remained a leading investor destination in the sub-region due to its stable democracy. The country’s credentials were underlined by its democracy even as many countries of its peers were thrown into turmoil especially in the late 80s to 90s. But that advantage it enjoyed appears blurred due to the fact that the sub-region has become very stable with countries putting in place a framework to compete for foreign direct investments (FDIs). As a country, Ghana may no longer lay claim to that unique selling point and as such may have to explore other equally compelling reasons to ensure investors continue to make it their preferred destination.

Despite all incentives that may be made available to entice investors to set up in the country, if the entry processes remain cumbersome – it may act as a major bottleneck. Initiatives like One District, One Factory have proven to be an investor favorite with many investors making enquiry at the Ghana Investment Promotion Centre (GIPC) – lead business promoter for the country. While the GIPC itself has performed creditably over the past few years, it would be interesting to find out how much more could be made if its registration processes are made simple rather than the convoluted system that exists. Investors seeking to establish in Ghana country have to interact with multiple state-

owned regulatory agencies at various locations with a lot of paperwork and legwork required. Admittedly, GIPC has attempted to make the system less complicated but there is obviously more to be done. This paper believes that a deliberate effort should be made to ensure that at least these business regulatory bodies operate a common platform or operate from a single location, at least, -- sharing relevant database without demanding from these potential companies eg. information already made available to other regulators. This would no doubt reduce the turn-around time for business registration and enhance the ease of doing business.

Nuclear power under serious consideration Continued from cover

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“It is important to note, however, that developing a nuclear power programme is a major undertaking requiring strong national leadership to ensure coordination [and] broad political and popular support, and should be owned and promoted by the government,” the institute said. The institute, which is under the Ghana Atomic Energy Commission (GAEC), said nuclear energy has been used by many advanced countries to diversify their economic environment, saying “Ghana can take the opportunity of introducing nuclear energy to also do the same.” The institute said Ghana has made considerable progress in the development of its Phase 1 nuclear infrastructure, but still has key studies outstanding. The deployment of nuclear energy in the energy mix will not only secure electricity supply in the country but also bring other benefits such as high-tech industry promotion, development of a more safety-oriented society, industrialisation, and employment, it added. It said nuclear energy research and development is key to ensuring a viable future for nuclear power as a prime component of Ghana’s energy mix. Since independence, Ghana has

relied on hydropower and fossil (oil and gas) thermal power plants as major sources of electricity. Recently, renewable energy, mainly solar energy, has been added to the energy mix, with new projects being developed. The institute said Ghana’s ambition to fulfil higher economic growth requires an abundant and affordable supply of electricity through a diverse energy mix. Against the backdrop of limited available hydropower, the

projected decline of available local gas reserves in the early 2030s, and fossil fuel price volatility, the national energy policy recommends diversification of Ghana’s energy mix to include nuclear and coal while increasing the penetration of renewable energy. The country’s current diversified generation mix consists of 1,580 MW from hydropower, 3,549 MW from thermal, and 42.6 MW from renewables, mainly solar.

Prof. B.J.B Nyarko, Director-General, Ghana Atomic Energy Commission (GAEC)

WEDNESDAY MAY 26, 2021

Capital market investor base set to deepen Continued from cover According to the Securities and Exchange Commission (SEC), the plan is expected to create alternative investment options such as real estate investment trusts (REITS), private funds, asset-backed securities, municipal bonds, and derivatives, which will support broader investor participation. Finance Minister Ken OforiAtta, at the launch of the plan, said, “The CMMP fully aligns with our [government’s] development aspirations and will facilitate the mobilisation of resources towards promising business opportunities, thereby creating jobs, boosting economic growth, and supporting the country’s financial stability.” A well-functioning capital market, where capital is raised from shares, bonds, and other long-term investments, allows an economy to fully exploit its growth potential, ensuring that the best investment opportunities receive the necessary funding. The Ghanaian capital market

boasts an asset management industry with 85 fund managers and over GH¢30bn in assets under management. In addition, it has a commodities exchange with over GH¢3m of commodities contracts and which is still in the early stages of development. The master plan intends to raise GH¢15.2bn in equity and GH¢52bn in bonds by the end of 2029. The plan is centered on four main pillars. The first pillar focuses on creating a diversity of investment products and liquidity in the securities market by prioritising the manufacturing and agricultural value chain. The second pillar seeks to increase the investor base by strengthening the institutions and the rule of law. The third pillar will strengthen infrastructure and improve market services by prioritising the adoption of technology to enhance business efficiency, and the fourth pillar seeks to improve regulation, enforcement and market confidence by enhancing public services delivery. Each

Rev. Ogbarmey Tetteh, Director-General, SEC

pillar has its own strategies to help achieve the targets set in it. Mr. Ofori-Atta said the four strategic pillars which underpin the plan will directly address fundamental concerns regarding transparency and market infrastructure. The Minister said, “Initiatives under the CMMP will position Ghana’s capital market as a ‘ready option’ to access cheaper finance. The ripple effect of this will be on creating more jobs, higher standards of living, increase in savings and investments, and poverty reduction. Essentially, the distributional effects of this intervention make it easy to justify this government’s commitment to reforming the capital market.”

Countries that have implemented similar capital market plans reaped huge economic benefits. Malaysia, for example, saw its equity market almost tripling in size within the 10-year implementation period, from 2001 to 2010, of its plan, with all other segments of the capital market experiencing double-digit growth. Within Africa, Kenya, which started executing its plan in 2014, has introduced several new products, including real estate investment trusts (REITs), asset-backed securities (ABS), green bonds, online forex trading, derivatives markets, and commodities markets to improve the breadth of the capital market.

GSE to regulate OTC market this year Continued from cover trade stocks, commodities, currencies, or other instruments directly between them without a central exchange or broker. In an interview with Business24 at the Money Summit in Accra, Mr. Afedzie said, “One of the key strategic initiatives is how do we create a platform for various types of securities for different targeted investors. OTC market is one of them. So we have developed the rules and framework, awaiting the approval from the regulator.” He added: “The OTC market is targeted at companies, that is, public limited liability companies, that have floated shares on the GSE but are not listed. So what the exchange is doing is to create the environment for public companies to trade their unlisted shares on the market.” Market analyst with FINCAP John Nani said, “The OTC market has been existent in Ghana but in a seemingly informal form without the supervision of any regulatory body. Investors already make bilateral trades and perform other

Ekow Afedzie

transactions without the central exchange or any other third party. The GSE’s plan to develop an OTC market will meet investors ready to participate in it.” Mr. Nani further explained that with the GSE’s involvement in the OTC market, there will be price discovery, transparency, and enhanced liquidity in the market. “This would in turn boost investor interest and confidence. In terms of timing, the market is rapidly evolving, and the investor

base’s hunger for assets to consume is high. A regulated OTC market is definitely a move in the right direction.” The CEO of Republic Securities, Mr. Kow Sackey, said, “The OTC market has always existed. To bring it under the supervision of the exchange, for a developing bourse like ours, is integral to broaden the scope of our market and demystify the various misconceptions about investing on the stock market.”

He added, however, that “as a lower degree of standardisation is expected for the OTC market, one cannot be entirely certain about whether liquidity would be improved when the OTC market is brought under the controlled supervision of the GSE.” Nevertheless, more options would be made available in the market to foster diversification of investments, which to some degree can improve the liquidity of the market, he stated.

WEDNESDAY MAY 26, 2021

News

WEDNESDAY MAY 26, 2021

FDA digitises payments for imports, exports T he Food and Drugs Authority (FDA) has begun digitising its import and export control systems to enhance efficiency and speed. The move, which commenced this month, will ensure the Import and Export Control Department of the FDA will receive all payments through an electronic digital platform. The digitisation of the payment process is aimed at reducing the turnaround time for doing business at the various ports of entry. All payments under this new initiative will be made through a new platform—Ghana.gov— which is linked to the Integrated Customs Management System (ICUMS) already in place. This new platform will offer a variety of payment options, such as mobile money, bank transfers and debit card transfers, and offer enough flexibility to importers and exporters to make the payment process seamless and less cumbersome. The project has already been piloted at the Tema port to test the system’s readiness. The FDA has already seen a reduced number of visits to its facility for payment purposes, which is indicative of how the initiative can reduce

Chief Executive Officer of the FDA, Mrs. Delese A. A. Darko

congestion at the various offices across the country. Meanwhile, the FDA in collaboration with the United States Pharmacopeial Convention recently held a three-day inaugural meeting in Accra of the Working Group on Promoting the Quality of Medicines (PQM+) programme funded by the United States Agency for International Development (USAID). The programme was attended by representatives from the FDA, National Malaria Control Programme, National AIDS/ HIV Control Programme, National Tuberculosis Control Programme, Expanded

Programme on Immunisation, Pharmacy Council, National Health Insurance Authority, Ghana Health Service, and the PQM+ West Africa Team. The Chief Executive Officer (CEO) of the FDA, Mrs. Delese A. A. Darko, said the PQM+ will sustainably strengthen medical product quality assurance in the country. According to her, working with medicines regulatory authorities like the FDA and other stakeholders in this programme will increase the supply of quality essential medical products through capacity building of local manufacturers towards WHO pre-qualifications

and Ghana Standards Authority criteria. She further stated that the PQM+ plans to help improve the capacity of FDA to conduct post-market surveillance by introducing a new risk-based approach which requires the participation of diverse groups that play a critical role in the quality assurance of medicines in the country. The project seeks to support and assess the level of progress of three selected local manufacturers of Artemether/ Lumefantrine and improve on the quality of oxytocin and iron + folic acid supplement on the Ghanaian market. The FDA Deputy Chief Executive, Technical Operations Division, Mrs. Akua Amartey, said the adoption of this new approach to post-market surveillance is key to ensuring quality medical products on the market. She pledged the support of the FDA and lauded the efforts by the stakeholders to implement this new approach. Mrs. Delese Darko encouraged members of the working group to seize the opportunity to build their capacity in the management of the quality of health products marketed in Ghana and contribute their quota to fight against substandard and falsified medicines.

Vivo Energy’s Hassan Ouattara adjudged Petroleum Sector CEO of the Year

ivo Energy Ghana’s Managing Director, Mr. Ben Hassan Ouattara has been adjudged the CEO of the Year for the Petroleum Sector at the 5th Ghana CEO Summit in Accra. Mr. Ouattara was awarded for his outstanding contribution in the downstream petroleum sector and trailblazing innovations in the industry. Under his leadership, Vivo Energy Ghana (Shell Licensee) became one of the first oil marketing companies to introduce a comprehensive automation at its retail sites to improve business efficiency and enhance customer satisfaction- a standard that has been adopted in the oil marketing industry. Throughout the unpredictable and overwhelming tough (COVID-19) year, his leadership ensured a consistent product availability across the country, devotion to good corporate citizenship through prompt

payment of taxes and levies, and adherence to the petroleum downstream industry’s ethics and standards. During the peak of the COVID-19 pandemic, Mr. Ouattara ensured a resilient business eco-system by effectively and efficiently collaborating with key stakeholders including retailers, transporters, engineering and other service providers. His strong focus on safety has ensured that the business continues to operate with ‘No Harm to People and the Environment’. Mr. Ouattara serves on various boards including the Association of Oil Marketing Companies, Tema Tank Farm, Aviation Joint User Hydrant Installation, Road Safety Limited and Orange Corner of the Netherlands Embassy. Mr. Ouattara is a resultsoriented, self-motivated and resourceful Managing Director with a proven ability to develop and strengthen teams in

Mr. Ben Hassan Ouattara (left) receiving his award

order to maximise company profitability and efficiency. He is a transformational leader who empowers people to unlock their potential, inspiring them to multiply growth. He brings in first-class professionalism and

an unrivalled commitment to excellence. His key strength lies in developing winning strategies that has seen many business turnarounds over the years in various roles that he held.

WEDNESDAY MAY 26, 2021

Feature

WEDNESDAY MAY 26, 2021

Poverty, inequality, and climate: defining choices of our age

By David Malpass

he COVID-19 pandemic has hit the poorest and most vulnerable people in developing countries the hardest, worsening inequality and exacerbating existing challenges—insufficient health care systems, education deficits, stagnant incomes, rising conflict and violence, poorly-selected debt contracts, and climate change. Unfortunately, the delays in beginning the vaccination process in developing countries are deepening global inequality and leaving hundreds of millions of elderly and vulnerable at risk. Beyond the pandemic’s immediate harm, COVID-19 is leaving lasting scars: children missed vital schooling and related childhood nutrition and vaccination programs; businesses collapsed with job skills lost; savings and assets have been depleted; and debt overhangs are depressing investment and preventing urgent social spending. The World Bank has moved quickly to help countries respond in three steps – 1) emergency health programs in more than 100 countries early in the crisis, 2) vaccination readiness assessments completed in over 140 countries by the end of 2020, and 3) COVID-19 vaccination financing and delivery operations that will reach at least $4 billion of commitments in 50 countries by mid-year. The International Finance Corporation, our private sector development arm, is helping to increase the supply of vaccines and critical health equipment.

Widely available vaccination is the best investment to strengthen the recovery, and I’ve repeatedly urged countries with sufficient vaccine supplies to release them as soon as possible to developing countries with delivery programs in place. In addition to vaccination programs, we’re working to focus our financing and expertise on impactful programs that will save lives and livelihoods, while supporting green, resilient, and inclusive development. The developing world needs sustainable growth that is broadbased and strong enough to lift hundreds of millions of families out of poverty, while integrating both development and climate. To help countries address climate-related goals, the World Bank Group will commit at least 35% of our financing over the next five years – totaling $100 billion – to support developing country climate investments. More important than the amount spent is the results. To address current needs, part of our climate financing will be used for high impact “mitigation” efforts to reduce greenhouse gas emissions (GHG), particularly by large emitters. Looking toward the future, at least half of our total climate finance will be for high impact “adaptation” efforts, to help countries prepare for harmful climate effects. Our focus on adaptation recognizes the reality that climate change hits the poorest countries hardest, even though their contribution to GHG emissions is minimal. One of our immediate actions is helping countries with their nationally determined contributions (NDCs) and long-

term low carbon development plans. Countries have widely varying approaches to Paris alignment, and it is important that their climate efforts maximize impact on both GHG emissions and successful adaptation. Adding to inequality, many of the poorer countries are coping with record debt burdens that charge high interest rates, even as rates in advanced economies stay near zero. Even before the pandemic, half of all low-income countries were already in debt distress or at a high risk of it. When the pandemic struck, I called for debt relief for the poorest countries starting with an immediate moratorium on debt service. The G20’s Debt Service Suspension Initiative (DSSI) provided temporary relief for 43 countries to postpone around $5.7 billion in debt-service payments between May and December of 2020, with further payment deferrals of $7.3 billion possible in the first half of 2021. The relief has been less than anticipated because not all creditors participated in the initiative – these nonparticipating creditors continued to collect billions of dollars in interest and principal payments during the crisis – and because debtor countries will also owe the suspended payments, plus interest, when the suspension period ends in December 2021. In April, the G20 announced a common framework under which countries with unsustainable debt burdens could achieve a moderate debt position. Working with the IMF, we’re supporting the implementation, but many of the sovereign debt contracts made in recent years contain provisions

that make debt analyses and restructurings difficult, including collateralization, non-disclosure clauses, and impediments to comparable treatment. History shows that countries with no way out of overhanging debt burdens don’t grow and don’t achieve lasting reductions in poverty. The policy imbalance in fiscal and monetary stimulus is another important contributor to inequality, both within and among countries. Fiscal stimulus and COVID-related support measures are concentrated in the advanced economies, and these efforts are failing to help people in the developing world. We can see this as prices spike – driven by demand in advanced economies – even as food insecurity hits huge swaths of the world’s poor. Global monetary policy suffers from an even greater imbalance because central bank bond buying and credit regulation direct resources to only the safest, most sophisticated institutions, crowding out other borrowers. Our collective response to poverty, inequality, and climate change will be defining choices of our age. The challenges are immense, requiring new approaches in both developing countries and advanced economies. The World Bank Group is dedicated to helping countries achieve constructive change and sustainable development as we work with the public and private sectors toward our core mission of alleviating poverty and boosting shared prosperity. David Malpass is World Bank Group President

WEDNESDAY MAY 26, 2021

News

WEDNESDAY MAY 26, 2021

Italian Trade Agency launches Italy-Ghana Agribusiness Digital Lab

he Italian Trade Agency (ITA) today launched the Italy-Ghana Agribusiness Digital Lab project to bring together Italian and Ghanaian companies in the agribusiness sector to develop mutually beneficial business relationships. The project will introduce Italian expertise and technology in the agribusiness value chain to the Ghanaian agribusiness market, with a focus on the following key areas: Agricultural Machinery and Mechanization; Logistics; Inputs and Agrochemicals; Irrigation; and Agro-Processing and Packaging. About 27 Italian companies with expertise in these areas will be presented to the Ghanaian market. The project will also expose Ghanaian agribusiness entrepreneurs to Italian initiatives in agribusiness training and skills development. The highlight of the project will be a series of virtual businessto-business (B2B) meetings to be held on June 22, 2021, between Italian agribusiness companies and their Ghanaian counterparts. To facilitate the meetings, the ITA

has established a portal, https:// ghana-italy.digital.ice.it/, which offers detailed information on the participating Italian agribusiness companies and technologies, and where Ghanaian agrorelated enterprises can register to participate in the virtual B2B meetings with the Italian companies. “Italy is a global agribusiness industry leader and has a number of household names in the supply of agribusiness inputs,

machinery, and technologies,” said Alessandro Gerbino, the ITA Director for West Africa. “The Digital Lab project therefore aims to connect these Italian companies with Ghanaian firms along the agribusiness value chain to facilitate commercial partnerships that will strengthen trade and investment between the two countries.” The Digital Lab project is targeted at all Ghanaian enterprises operating along the

agribusiness value chain, such as input suppliers, farmers/growers, agricultural trading companies, agro-processors, and retailers. The Ghanaian entrepreneurs who participate in the B2B meetings will also be given the chance to compete for two scholarships for MBA in Impact Entrepreneurship and Innovation. 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.

Absa Bank takes customers on a journey with digital innovation

s a forward-looking, digitally-led financial services group, Absa is showcasing how it seamlessly integrates technology and innovation into the lives of its customers across the Continent, at each stage of their respective life journeys. “Absa firmly believes in creating opportunities for our customers to help bring their possibilities to life, and empowering them to

do more,” says Mr. Charles Addo, Retail Banking Director at Absa Bank Ghana Limited. “We are proud to support them by anticipating and satisfying their financial needs through differentiated, innovative propositions and products from chat banking (powered by artificial intelligence) to contactless payments. As a demonstration of this, we will be sharing various customer

journeys, showing how trusted digital solutions can make getting ahead simpler.” The first story features a man’s journey through the early part of his adult life as he, with both grit and determination as well as with the support of Absa’s digital channels, overcomes challenges and succeeds. He does this all with the ultimate goal of helping his mother improve her eyesight. “The storyline also reflects the

bravery, passion and Africanacity of people who overcome obstacles everyday, steadfast in what they want to achieve and who they want to achieve it for”, noted Mr. Ebo Richardson, Chief Enablement Officer at Absa Bank Ghana. Absa has brought an extensive digital product portfolio to Africa, including being among the first to fully launch WhatsApp Banking service, Absa’s chatbot Abby. From Vertical cards and contactless payments to biometric Apps and seamless business banking platforms, Absa has a digital financial solution and service offering for every life stage. “Going forward, Absa’s focus remains on fast-lane and relevant innovation, as well as the creation of insight-led, market-aligned initiatives and digital capabilities,” says Mr. Richardson. “Customers want real-time, convenient and friendly solutions that underpin a secure and seamless financial lifestyle and top-notch experience. Simply put, our digital solutions get things done.”

WEDNESDAY MAY 26, 2021

Maritime, Trade and Logistics

WEDNESDAY MAY 26, 2021

GSA holds forum on air freight and exports operations

he Ghana Shippers’ Authority (GSA) has organised a forum for exporters and shipping service providers operating at the Kotoka International Airport (KIA), Accra. The event which was held at the Ghana Shippers House discussed air transport services, standards for packaging, repatriation of export proceeds, export insurance and developing markets within the sub-region. In a welcome address, the Chief Executive Officer (CEO) of the GSA, Ms. Benonita Bismarck said the GSA recognises the need to equip exporters with the necessary information and knowledge in the area of transport and logistics to gain a competitive advantage in the international trade. She said it is for this reason that the GSA has over the period organised workshops and seminars to expose exporters to the dynamics of the shipping industry and to find solutions to the myriad of challenges they face.

Ms. Bismarck acknowledged the fact that there has been a severe impact of the COVID-19 pandemic on global air transportation operations which has largely affected trade volumes, flight operations, market accessibility, lives and businesses. This, she said has impacted the air cargo sector of the economy more. She assured participants of the GSA’s commitment to promoting and protecting the

interest of shippers to harness the desired benefits of doing business in Ghana. Mr. Charles Kuranchie, Chief Scientific Officer, Standards Directorate at the Ghana Standards Authority in a presentation on standard packaging materials for export-requirements noted that packaging is a vital aspect of the export process that ensures that a product gets to its destination in perfect condition.

He encouraged exporters to ensure that packaging is made using materials that comply with specified requirements and legislation. Mr Eric Kweku Hammond, an official from the Bank of Ghana, explained that exporters are enjoined by the provisions of Act 723 to repatriate proceeds from the export of merchandise commodities from Ghana. According to him, the Bank of Ghana is also charged with licensing, regulatory and supervisory authority to give effect to Act 723 by monitoring exports from Ghana and ensuring repatriation of proceeds through the banking system to Ghana. Over 40 participants, including exporters, airline operators, terminal handlers, freight forwarding associations and some shipping services providers attended the seminar. The forum provided an opportunity for the exporters to raise their challenges in the export value chain with the various state agencies and operators.

WTO introduces the General Council ePortal

new e-portal and search engine will make it easier to access documents on the deliberations that have taken place within the General Council, the WTO’s top decision-making body in Geneva. The General Council ePortal (GCeP) contains all matters that have been taken up in General Council meetings since its inception in 1995, by calendar year. In particular, the portal gives access to a database of issues raised and discussed in the General Council and, where applicable, associated documents and decisions, either issued as separate documents or recorded in the minutes of the

General Council. An additional search tool and filters have also been created to facilitate the retrieval of relevant matters and documents. For example, this tool will allow users to filter only for matters where a relevant General Council decision was taken. The General Council is entrusted with carrying out the functions of the WTO, and taking action necessary to this effect, in the intervals between meetings of the Ministerial Conference, in addition to carrying out the specific tasks assigned to it by the Marrakesh Agreement Establishing the World Trade Organization.

Trade dispute: Expectations of Nigerians ahead of government dialogue

he Federal government of Nigeria has instructed a ministerial delegation to visit Ghana to resolve the lingering conflict between the Nigerian traders in Ghana and the local authorities. The delegation which is said to arrive in Ghana on May 31, 2021, will be led by the Minister of Trade, Niyi Adebayo. However, speaking to some Nigerians in Ghana on their expectations ahead of the dialogue, some were of the view that the meeting with the authorities is a step in the right direction and would possibly help resolve the conflicts. Others believed the meeting

would not change anything as these talks have been held on several occasions but no achievements. Another was of the view that the problems facing citizens in Ghana, emanate from Nigeria and hopes this dialogue brings a lasting solution to the challenges. Nigeria and Ghana have been in a serious trade conflict since 2019, which led to the locking up of shops in areas of Accra, Ghana. Although there have been several cries to the authorities in Ghana to unlock the shops, there has been no definite response. Source: mynigeria.com

WEDNESDAY MAY 26, 2021

Companies

WEDNESDAY MAY 26, 2021

Absa Bank MD, Abena Osei-Poku recognised among Africa’s top female corporate leaders

he Managing Director of Absa Bank Ghana, Abena Osei-Poku has been named as one of Africa’s 50 Most Influential Female Corporate leaders. The announcement was made by Leading Ladies Africa, a womenfocused non-profit organization based in Sub-Saharan Africa, which is committed to promoting leadership and excellence among African women. The top 50 corporate women list, which is in its fifth year, comprises of African women and women of African descent who are making great contribution and impact in the corporate and business sector. Mrs Abena Osei-Poku’s recognition as one of Africa’s leading corporate women, is in honour of her inspiring achievements, exemplary leadership in Ghana’s banking sector and her commitment to upholding good corporate governance as well as supporting people’s dreams and possibilities through the provision of financial services, solutions and opportunities. Commenting on the

Abena Osei-Poku

announcement, Mrs. Osei-Poku said “I am truly humbled and honoured by this recognition. As a leader, my passion and commitment is to give meaning to people’s lives and this remains my guiding principle as we continue to drive shared prosperity for all”. As the Managing Director of Absa Bank Ghana, Abena Osei-

Poku has demonstrated integrity and innovation in Ghana’s financial sector, and most importantly sustained business growth. Ms. Francesca Uriri, the Founder of Leading Ladies Africa, noted that the list reflects the organization’s objective to continue to push for gender

diversity and inclusiveness within the corporate sector – especially for African women. It is also to highlight and celebrate their achievements as well as contribution to the growth of global business and large corporate organisations. “We will continue to push for gender diversity and inclusion of African women and women of African descent in executive positions and boardrooms in organisations across the world, and hope that this list encourages more to aim for these positions and increase representation across different sectors,” Ms. Uriri added. The list also features other prominent Ghanaian women including, Patricia Obo-Nai, Chief Executive Officer of Vodafone Ghana and Kadijah Amoah, Chief Executive Officer of Aker Energy Ghana Limited. Leading Ladies Africa, has been keen on promoting women’s rights in Africa, developing and equipping African women with the skills required to take on leadership roles across businesses, governance and corporate sectors.

Supporting entrepreneurs to connect, develop and grow during COVID-19

wC Ghana reaffirmed its commitment to supporting entrepreneurship last month when it held the second edition of its business mentorship programme, PwC Xccelerate. PwC Xccelerate, which was first launched by the professional services firm in November 2019, provides entrepreneurs with training to enable them to create sustainable business ventures through mentoring and masterclasses led by PwC professionals. This year, in adherence to COVID-19 restrictions, Xccelerate classes were held virtually, allowing PwC to expand the reach of the programme on a global scale. “COVID-19 has disrupted plans, changed priorities and made us acutely aware that we cannot predict the future,” Ayesha Bedwei Ibe, PwC Tax Partner and West Africa Corporate Responsibility Leader remarked. “We understand that managing change and navigating

complexities are some of the issues that many businesses face, which is why we are committed to providing learning opportunities to entrepreneurs who are experiencing reduced access to help from sources that were once available to them.” Over forty-seven participants

from Ghana, Nigeria, the United Kingdom, Germany and Kenya attended the two-day virtual programme which focused on topics including accounting and bookkeeping, tax, law and business sustainability. “The feedback we received from Xccelerate 2021 participants was very encouraging. The virtual aspect of the programme enabled

Ayesha Bedwei Ibe, PwC Tax Partner and West Africa Corporate Responsibility Leader remarked

us to connect with people with innovative businesses ideas in different countries. We remain dedicated to helping entrepreneurs to reimagine their value propositions and will continue to grow and adapt our online approach to mentoring start-ups,” Mrs Bedwei Ibe concluded.

WEDNESDAY MAY 26, 2021

Feature

WEDNESDAY MAY 26, 2021

Biden’s trumpy start on trade

By Anne O. Krueger

ormer President Donald Trump did enormous damage to the United States’ reputation and future prospects, both domestically and internationally. Yet while President Joe Biden has set about reversing the previous administration’s legacy in many domains, he has yet to focus his attention on US trade policy. That needs to change. Trump’s trade policies were not only a disaster for US and world trade; they also have made it more difficult for the US to achieve a broader range of economic and foreign-policy goals. Reversing those policies thus should be a top priority for the new administration. After all, America’s friends and allies (particularly the European Union, the United Kingdom, Canada, Mexico, Japan, and South Korea) remain deeply shaken by Trump’s protectionist impulses. In addition to slapping tariffs on a broad range of goods, his administration forced a renegotiation of the North American Free Trade Agreement and the US-Korea Free Trade Agreement, and withdrew the US from the Trans-Pacific Partnership (TPP) to which the US had agreed. It declared a “trade war” with China, despite that country’s membership in the World Trade Organization (WTO), and with no regard for US trading partners’ own dealings with China. Taken together, these policies have done serious damage to America’s standing in the world. Leading the world toward an open multilateral trading system under the 1947 General Agreement on Tariffs and Trade (GATT, which became the WTO

in 1995) was one of America’s crowning achievements after World War II. The system works precisely because members willingly commit themselves to open, rules-based trade policies. Among other things, this ensures that foreign traders have the same rights as domestic nationals when disputes between them arise, and that the principle of nondiscrimination among trading partners prevails, except in the case of preferential trading arrangements. Trade flourished under the GATT, with the US leading negotiations for multilateral tariff reductions and the removal of other trade barriers (including quantitative restrictions). In later years, developing countries witnessed the success of open markets and decided to start dismantling their own highly protectionist regimes. For most, this resulted in a remarkable acceleration of growth in output and trade. For more than a halfcentury, world trade grew roughly twice as fast as world GDP. This growth was far from smooth, of course. Significant slowdowns followed the oil shocks of the 1970s, the Asian financial crisis of the late 1990s, and the Great Recession a decade later. Growth in world output and trade has resumed since the 2008 global financial crisis, but not as rapidly as in the years preceding it. And China, following an overhaul of its trade policies in the 1990s and its accession to the WTO in 2001, emerged as the world’s largest trading power. In addition to reducing domestic poverty and improving living standards for its own population, China’s dramatic economic ascent was bound to raise issues with other countries.

But thanks to the WTO and its dispute-settlement mechanism, there was a multilateral forum where these issues could be addressed – that is, until Trump came along. Although Biden has reasserted America’s commitment to internationalism and multilateralism, he has moved slowly to repair the damage that Trump did to critical institutions like the WTO. Nor has Biden reversed Trump’s withdrawal from the TPP. Now called the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, US membership in this 11-country pact would be a boon for US exporters. Currently, US companies are at a distinct disadvantage relative to their competitors in CPTPP countries, because their exports to those economies are subject to duties that do not apply to exports from members of the bloc. Biden also has not ended the trade war with China, even though that effort has utterly failed to achieve its stated objectives. While the US bilateral trade deficit with China has fallen somewhat, the deficits with Vietnam, Malaysia, and others have risen commensurately as their exports have replaced those from China. Although the Biden administration has finally agreed to a new director-general for the WTO, it has done little to reduce Trump’s tariffs, and has even announced that it will strengthen “buy American” provisions in government procurement contracts. Biden says he wants to protect American jobs, yet the Trump administration’s tariffs on imported iron and steel, which

have cost a net total of around 75,000 jobs (leaving out the additional losses caused by other countries’ retaliatory tariffs), remain in place. If Biden really wants to help American workers, he should recognize that exports create good jobs, and that the export sector’s contribution to US GDP has doubled as a result of open multilateral trade. As for America’s currentaccount deficit, that can be addressed only by curtailing US expenditures relative to income, not through protectionism. And because the WTO procurement agreement has led other countries to open up government bidding processes for American exporters, it is doubtful that weakening it will benefit American workers; indeed, doing so may even cost jobs. China is here to stay. Though there are certainly trade issues that need to be addressed, that is best done multilaterally. The US and China have both lost as a result of the trade war. A US offer to remove the tariffs if the Chinese reciprocate and join multilateral discussions on outstanding issues could benefit both countries and the rest of the world. Strong economies make for successful countries. Efforts to protect domestic industries are a sign of weakness, not strength. If the Biden administration wants to achieve its stated goals, it will remove Trump’s protectionist measures, work multilaterally, strengthen US infrastructure, invest in workforce skills and education, and expand America’s research capabilities. It should be obvious by now that continuing the last administration’s trade policies is a recipe for failure.

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