1
WEDNESDAY SEPTEMBER 1, 2021
World Bank approves US$103.4 m to reverse Ghana’s land degradation
YEA Job fair to offer close to 300 job opportunities
See page 5
See page 11
BUSINESS24.COM.GH
NO. B24 / 242 | NEWS FOR BUSINESS LEADERS
WEDNESDAY MONDAYSEPTEMBER MAY 3, 20211, 2021
Economy registers US$874m worth of investments in H1 By Benson Afful affulbenson@gmail.com
T
he services and manufacturing sectors of the economy were dominant as the country registered US$874m worth of investments from 122 projects in the first half of 2021, the Ghana Investment Promotion Centre (GIPC) has said.
President Nana Akufo-Addo commissioned the first Toyota and Suzuki vehicle assembly plant in Ghana this year.
Cont’d on page 2
ISSER panelists back Development Bank Ghana By Eugene Davis ugendavis@gmail.com
P
anelists at the Institute of Statistical, Social and Economic Research (ISSER) Development Dialogue have justified the need for synergies and long-term financing in the country in
IFS urges increased state interest in extractives sector By Patrick Paintsil p_paintsil@hotmail.com
E
conomic policy think tank Institute for Fiscal Studies (IFS) has asked government to renegotiate existing agreements with oil and mining companies so as to get actively involved in the Cont’d on page 3
Bayport Savings and Loans records 13.4% growth in net profit By Benson Afful affulbenson@gmail.com
B
ayport Savings and Loans remained resilient through the COVID-19 pandemic and continued to make significant gains during the first half of 2021. Cont’d on page 5
Follow us online: facebook.com/business24gh twitter.com/business24gh linkedin.com/pg/business24gh
Cont’d on page 3
instagram.com/business24gh
2
Editorial / News
WEDNESDAY SEPTEMBER 1, 2021
Editorial
Much of nation’s domestic revenue locked in the extractives sector
T
he lack of government interest in the extractives business has seen the nation losing out on some good monies that it’s in dire need of to undertake infrastructural development. Instead of being a dominant player, the state’s approach to the mining and oil exploration business has been laid back with the benefit of the nation’s minerals wealth tied only to taxes and royalties. A study conducted by the economic think tank, Institute for Fiscal Studies (IFS), has revealed worrisome concerns with the economy getting a pittance of the huge profits that companies— mostly foreign—are raking from the extractives business. Despite owning the oil and gold resources, the revenue impact
of mining and oil exploration activities on the Ghanaian economy has been very minimal, the study showed. To reverse this alarming situation, the institute recommends that government must aim at having fully stateowned firms operating in the oil and mining sub-sectors, using some workable vehicles such as a production sharing agreement (VSA’s). With VSAs, the state engages a private extractive company as a contractor to provide technical and financial services for exploration and development operations, who is then entitled to an agreed share of the extracted resources. Unlike royalty/tax approach under concessionary
arrangement, the state remains the owner of the resources before, during and even after production, subject only to the company’s entitlement to its share of production and a joint management committee is established to monitor the operations of the contractor. There must be a proactive action from the government on this recommendation from the policy think tank given that it is one of the surest of garnering domestic revenue for developmental projects. The harms of exploration of oil and gold resources to our environment and aquatic resources are huge and we cannot afford to be losing on the two sides.
Economy registers US$874m worth of investments in H1 Continued from cover
Your subscription -- along with the support of businesses that advertise in Business24 -- makes an investment in journalism that is essential to keep the business community in Ghana well-informed. We value your support and loyalty. Contact Email: hello@thebusiness24online.net Newsroom: 030 296 5315 Advertising / Sales: +233 24 212 2742
The services sector recorded 63 projects at an estimated value of US$597.63m, while the manufacturing sector recorded 24 projects at a value of US$98.74m. General trading as well as building and construction recorded Foreign Direct Investment (FDI) values of US$41.87m and US$22.63m respectively. The country’s top investment body said the projects registered so far have the potential to generate 8,931 jobs, thereby improving
aggregate employment. According to the centre, 8,091 (90.59 percent) of these positions will be for Ghanaians, while the remaining 840 (9.41 percent) will be for non-Ghanaians. The GIPC said it remained optimistic about maintaining the strong performance while moving forward in a new and innovative way. This the centre hopes to achieve by reviving international investment as a conduit for economic growth through aggressive engagement with the international investor community
and the organisation of the first annual investment summit dubbed “Spark up 2021”. Attracting investments under the country's CARES initiative will continue to be a priority to the centre in order to guarantee that Ghana's economic recovery is inclusive, with benefits flowing to all sectors of the economy, the centre added. Out of the total registered investment of US$874m, the FDI component amounted to US$829.29m, while the local component accounted for US$44.72m.
3
News
WEDNESDAY SEPTEMBER 1, 2021
ISSER panelists back Development Bank Ghana Continued from cover order to support businesses and promote investments. The development dialogue was on the theme “National Development Banks and Sustainable Financing in Ghana”. The panelists generally acknowledged that a wellfunctioning national development bank (NDB) can play a role in filling major financing gaps. Such large financing gaps exist in areas crucial for sustainable development, including infrastructure, agriculture, industrialisation, science, technology and innovation, as well as for financial inclusion. Government in May this year signed an agreement with the European Investment Bank (EIB) for €170m for the establishment of Development Bank Ghana (DBG). The DBG is an integral feature of the GH¢100bn Ghana Cares Obaatanpa project. It is a key pillar in Ghana’s efforts to quickly recover from the effects of the COVID-19 pandemic and is
intended to be a model institution that supports the financial system to play its role in supporting the private sector to expand and create jobs. Prof. Peter Quartey, Director of ISSER, in a presentation at the event stated that if the development bank is to succeed, it has to be devoid of political interference. “We have to operate it as a business, not an anchorage of any political leadership. When we do that we will see it becoming sustainable.” Sampson Akligoh, Director of the Financial Sector Division of the Ministry of Finance, indicated that the development bank will be independent and “fill the gap of long-term financing, which will be the future of the country in terms of growth and jobs.” The immediate past dean of the University of Ghana Business School, Prof. Joshua Abor, explained that national development banks are important because of market failures. “We know markets are imperfect, [they have] inefficiencies, and they are not able to adequately support or
Finance Minister Ken Ofori-Atta
finance the private sector, [so] there is the need to introduce development finance initiatives,” he said. Speaking at the same event, Dr. Vera Fiador, a senior lecturer at the University of Ghana Business School’s Department of Finance, said some development banks in Ghana in the past failed due to factors such as financial sustainability, poor corporate governance, and weak regulation and supervision. She advised that if the new development bank is to reach its full potential, its institutional framework should be strengthened to ensure it does not suffer from undue political interference. The CEO of the Agricultural
Development Bank (ADB), Dr. John Mensah, speaking as a panelist at the event, said the bank was excited about the new development bank. “We are hopeful of the benefits that will emerge from a collaboration between ADB and DBG in helping channel private investments into productive sectors, new technologies and help accelerate market efforts to achieve the sustainable development goals.” The chairman of the event and former Vice Chancellor of the University of Ghana, Prof. Ernest Aryeetey, said: “There is no doubt in my mind that development banks are important, but it’s critical to craft a governance system that ensures it succeeds.”
IFS urges increased state interest in extractives sector Continued from cover exploration and management of the nation’s earth resources. According to the institute, it was high time the state controlled major interests in the extractives business through joint ventures and other production-sharing mechanisms to ensure that the state secures much revenue from its extractive resources. “The extractives sector is poorly positioned for revenue generation purposes although it is one of the main growth poles of every economy in modern times, if well managed,” Dr. Said Boakye, Senior Research Fellow at the IFS, said at a forum the Institute organised on the theme “Ghana’s Domestic Revenue Mobilisation Woes: How Do We Fix It?” Presenting a paper on the role of the extractive sector in Ghana’s comparatively low public sector revenue mobilization, the economist advised that the mining and oil industries must not be joked with because they come with exceptional profits that can facilitate national growth. “Employing the taxation approach to generate minerals
revenue does not make rational sense; we can’t depend solely on taxes and royalties as the source of revenue from the extractives sector,” Dr. Boakye added. The IFS research paper on the performance of Ghana’s public sector revenue showed very poor numbers compared with those of peer countries in the developing world, which the think tank says is the cause of the country’s profuse borrowing with high debt servicing costs. For instance, comparing Ghana and Nigeria’s oil revenue, the study found that Ghana produced US$2.9bn worth of the commodity between 2015 and 2018, realising US$548m in state revenue,
representing 17.9 percent, whilst Nigeria produced US$43bn worth of oil and secured US$22.8bn in revenue, which represents 51.6 percent. The study indicated that poor extractive sector revenue generation is the main source of Ghana’s comparatively low public sector revenue mobilization. To shore up public revenue to provide some fiscal space to fund the country’s development, the think tank suggested that revenue generation from the country’s extractive sector should urgently and drastically be improved through active state participation. IFS recommended productionsharing agreements as one
workable means that the government could leverage to have a firm grasp of the extractive sector. In a production-sharing agreement, the state engages a private extractive company as a contractor to provide technical and financial services for exploration and development operations, who is then entitled to an agreed share of the extracted resources. Unlike the royalty/tax approach under concessionary arrangement, in a productionsharing agreement the state remains the owner of the resources before, during and even after production, subject only to the company’s entitlement to its share of production. Additionally, a joint management committee is established to monitor the operations of the contractor. “The abundance of extractive resources in a country does not guarantee that the country will be able to achieve rapid economic growth and prosperity; it depends on the country’s ability to capture sizable proportions of the revenues from the sector,” Dr. Boakye said.
4
WEDNESDAY SEPTEMBER 1, 2021
5
News
WEDNESDAY SEPTEMBER 1, 2021
World Bank approves US$103.4 m to reverse Ghana’s land degradation
T
he World Bank has approved US$103.4 million for Ghana to reverse degradation of about three million hectares of degraded landscapes and strengthen the country’s integrated natural resource management. The Ghana Landscape Restoration and Small-Scale Mining project will focus on land-use planning for integrated landscape management and promote sustainable mining by helping formalize artisanal and small-scale mining, with over 250,000 people as direct beneficiaries. The bank said in a statement that the project would be working with communities of the northern savannah zone and the cocoa forest landscape. It said the cost of environmental degradation in Ghana due to unsustainable use of land for agriculture, forests, and mining stood at 2.8 percent of GDP in 2017. The statement informed that if the current natural resource extraction persisted, Ghana would see its natural resource base destroyed over the long term, with fewer opportunities to sustain growth and shared
prosperity. “The project will help boost post-COVID-19 economic recovery, create jobs and secure livelihoods in some of the poorest parts of Ghana by focusing on agricultural productivity, ecosystems management and sustainable small-scale mining,” said Mr. Pierre Laporte, World Bank Country Director for Ghana. He said the project would also support sustainable land, water, and forest management activities in the climate vulnerable target landscapes. “The project aims to place landscapes and mining sector management on a path that would transition from degraded landscapes, poverty, and low productivity toward one of resilient landscapes that optimize the ecosystem functions for better livelihoods and more sustainable economic returns,” said Mr Sanjay Srivastava, World Bank Practice Manager, Environment, Natural Resources and Blue Economy. The project would also enhance women’s role in local-level forest and landscape management activities, and create better income-generating opportunities, he added. "This joint project aligns with
Destruction of agricultural land by surface mining activities in Ghana
the World Bank's Forest-Smart Mining Initiative and will promote forest-smart interventions in the artisanal and small-scale mining sector and strengthen regulatory compliance and sustainable mining practices," said Mr Zubin Bamji, World Bank Acting Practice Manager, Energy and Extractives Global Practice. The financing includes an IDA credit of $75 million and $28.4 million in grants from the Global Environmental Facility, the Extractive Global Programmatic Support, and the Global Partnership for Sustainable and Resilient Landscapes (PROGREEN) multi-donor Trust Funds. The World Bank’s International Development Association (IDA),
established in 1960, helps the world’s poorest countries by providing grants and low to zerointerest loans for projects and programmes that boost economic growth, reduce poverty, and improve poor people’s lives. IDA is one of the largest sources of assistance for the world’s 75 poorest countries, 39 of which are in Africa. Resources from IDA bring positive change to the 1.6 billion people who live in IDA countries. Since 1960, IDA has supported development work in 113 countries. Annual commitments have averaged about $21 billion over the last three years, with about 61 per cent going to Africa.
Bayport Savings and Loans records 13.4% growth in net profit Continued from cover With a focus on cost containment and the elimination of foreign exchange risks, the company recorded a strong financial performance, with profit after tax increasing by 13.4 percent from GH₵8.4m in the first half of 2020 to GH₵9.5m in the first six months of this year. The significant growth in profit was driven by a 4 percent yearon-year increase in net interest income, which was the result of specific initiatives implemented to reduce the cost of borrowing. With the elimination of foreigndenominated liabilities, gains were recorded from assets held in foreign currencies. Bayport also maintained its number one position in the government payroll-lending space, with 17.3 percent market share. The Bayport digital strategy contributed significantly to cost containment and will continue to
do so in future. During the first half of the year, more than 1,000 field agents were migrated onto the MyBayport app and issued with tablets to enable digital loan origination. Currently, more than 700 agents are using the digital onboarding process that was launched in 2019. The focus for the second half of the year is to complete the digitisation of back-office processes, which will ultimately empower customers to engage directly with the company through self-service channels. Since Bayport’s digital journey commenced three years ago, all back-office operational staff and agents have been fully trained to use the new applications that have improved loan turnaround time and customer experience. In addition, an e-money platform was launched as one of the selfservice customer channels to facilitate Bayport’s migration to a cashless operation. Other initiatives on the digital journey
include the launch of selforigination via WhatsApp and USSD, a solution that will enable customers to apply for a loan using their phones. “With digitisation, we are transforming our business to grow rapidly and sustainably while providing first-class financial solutions for our customers,” said Akwasi Aboagye, CEO of Bayport Savings and Loans. “Through these and other initiatives, Bayport continues to take the lead in the savings and loans sector.” In May of this year, Nii Amankra Tetteh, who had been the chief executive officer of Bayport since December 2017, exited the business to pursue other
interests. During his tenure, the business recorded the highest growth in assets and profitability of its sixteen years of existence. Akwasi Aboagye succeeded Nii Amankra and will continue to drive the strategic objectives that were introduced three years ago to ensure the operation’s profitability. On the corporate social investment front, more than 80 Bayport scholarship students have graduated from several tertiary institutions across the country in the past year. To date, more than 100 primary, secondary and tertiary students from across the country have received Bayport scholarships.
6
WEDNESDAY SEPTEMBER 1, 2021
7
News
WEDNESDAY SEPTEMBER 1, 2021
Over 4000 youth connect to Vodafone’s virtual skills fair
O
ver 4000 Ghanaian youth on last Friday joined the maiden edition of Vodafone virtual skills fair to be properly equipped in making informed career choices. The online skills fair dubbed ‘LevelUp’ created a platform for astute Ghanaian specialists to share their experiences, challenges and opportunities in their chosen career path. The event also offered young men and women an opportunity to interact with expert speakers. In an interview with the media at the event, Chief Executive Officer (CEO) of Vodafone Ghana, Patricia Obo-Nai, underscored the need for the youth to be equipped with the requisite technological skills to embrace the digital space. “The world is changing at a fast pace and the adoption of technology is moving even faster with the pandemic. It is shocking to find out that whiles
we are talking about youth unemployment we still have vacancies in many companies like ours because we can’t find digital and technology skills to fill in the roles we have. And so, for us as an organisation, spending time, bringing in amazing speakers to share their career journey and experience will help the youth in making the right decision. She added “Speakers will also highlight on the importance of building a career and acquiring new skills in order to inform the youth to make right choices and have a straighten career path” Madam Obo-Nai further highlighted some initiatives her outfit has rolled-out to connect the new generation to the new world of work. “Vodafone has quite a number of initiatives that have been running for the youth, as a purpose led organisation, we are interested in training the human capital of the country. This initiative includes,
a discovery program where we train and equip the university graduate for over two-years after which we embed them in the organisations,” she said. “We also have the reconnect programme where mothers who have taken a career break are allowed to come in, whether they worked for Vodafone in the past or not, it allows them to gradually get themselves back to work
and prepare for the workplace. Lastly, is the Vodafone apprentice programme, where we bring in young developers and give them exciting projects at Vodafone to help them prepare for the job market”, she added. On her part, the Minister of Communications and Digitalisation, Ursula OwusuEkuful lauded Vodafone Ghana for coming up with such initiative.
Microfin Rural Bank shows resilience with impressive figures for 2020 The bank’s deposits general meeting, attributed the By Patrick Paintsil p_paintsil@hotmail.com
G
hana Club 100 member, Microfin Rural Bank (MRB), based in Pomadze in the Central Region, has posted strong growth for the 2020 financial year with improved performance in all key indicators against the previous year’s results. The bank recorded a profit after tax of GH¢237,051 in 2020
as against the 2019 figure of GH¢168,308, which was a positive growth of 40.8percent compared with the previous year’s negative growth of 64.7percent. It also recorded a 40.9percent growth in total assets, which increased from GH¢11.2m previously to GH¢15.7m in 2020, whilst loans and advances for the period was also up to GH¢8.07m, representing a 43percent growth from the GH¢5.6m that was recorded in 2019.
Board chairman, Kwabena Owusu-Mensah, addressing the shareholders at the AGM
grew significantly, rising by 56.3percent from GH¢7.6m in 2019 to GH¢11.9m in the year under review, which is higher than the 37.2percent recorded as the overall average growth in the rural banking sector. Interest income went up by 8.8percent whilst net interest income and paid-up capital also increased by 3.45percent and 1.78percent respectively. Board chairman, Kwabena Owusu-Mensah, who disclosed the figures at the bank’s 8th annual
sterling performance to the collective effort of management, staff and customers who are working assiduously to position MRB as the leading rural bank in the country. Looking ahead, he said the bank will analyze the business environment and pick lessons from the Covid-19 pandemic to prioritise its actions and decisions that will enhance business value in the now whilst building strategic resilience into the future. “MRB has adopted digitalization as a major tool to drive its operations as we continue with fin-techs to ensure the roll-out of innovative products and services to reduce the cost of transactions to the barest minimum,” Mr. Owusu-Mensah said. He added: “The virus pandemic has changed the world for the better, and one major lesson that has been learned is the need to stay resilient in a crisis. As a bank, this is what we take pride in.” MRB has also cut the sod for the construction of its ultra-modern head office building as it seeks to offer convenient banking services to rapidly growing clientele in a more secured and comforting environment.
8
News
WEDNESDAY SEPTEMBER 1, 2021
Germany gives Ghana 1.5 million doses of AstraZeneca COVID-19 vaccines
T
he German government is giving Ghana 1.5 million doses of the AstraZeneca COVID-19 vaccines to aid in the country’s vaccination campaign against the pandemic. The donation is part of the pledge made by Germany to make up to 70 million doses of COVID-19 vaccine available to African countries this year to help the continent’s bid to vaccinate its 1.3 billion population. German Chancellor, Angela Merkel made the pledged last Friday after a summit with African leaders on the G20’s Compact with Africa Initiative held last week. “As we speak, President AkufoAddo has dispatched a plane to Germany to take delivery of the 1.5 million doses of the AstraZeneca vaccines”, said the Director of Communications at the President, Eugene Arhin whilst addressing the Presidential Press Corps at the Jubilee House,
Accra. The contribution from Germany is in addition to 1.5 million doses of the Moderna vaccine that the American government has given Ghana to aid the government's quest to have at least 20 million of the adult population of the country vaccinated by the end of the year. “At this particular stage, I
think it is a good initiative that has been undertaken by the government of President AkufoAddo towards helping to rid our country of COVID-19, and, hopefully, his pledge of ensuring 20 million Ghanaians by the end of this year are vaccinated, slowly but surely, I believe we are on course to realising that particular pledge of ensuring that the entire
adult population of Ghana is vaccinated. “So, 1.5 million vaccine doses from Germany is on its way to Ghana,” Mr. Arhin said. The communications director who was briefing the press corp on the President’s seven-day working visit to Germany said President Akufo-Addo held bilateral talks with his German counterpart on vaccines, acquisition of naval patrol boats for the Ghana Navy, and strengthening the bonds of cooperation between the two nations. The President also participated in the G20 Compact for Africa, initiated under the German presidency to promote private investment in Africa, including in infrastructure, where he made clear that the compact initiative had had a tremendous impact on Ghana’s ambition to become an investment hub in Africa, with auto and industry giants pitching camp in the country.
Forum on business strategy slated for October 7
A
forum to help businesses and individuals to explore opportunities in the marketplace is scheduled to take place at the plush Accra City Hotel, between October 7 and 8 this year. The Business Strategy Forum is expected to focus on four thematic areas which include leadership, people management, sales strategy and culture. An initiative of Role Model Africa, the forum will attract stakeholders from various parts of the country and beyond, connecting virtually and inperson. The Role Model Africa, organisers of the forum, indicated that the forum has been well structured to grant individuals and organisations a clear road map to navigate the volatile marketplace. As a way to ensure that participating managers, supervisors and middle-level staff gain hands-on experience through the forum, sessions have been designed with engaging and practical content that increases the learning and absorption rate in a social media-driven era where attention is a rare commodity. The leadership module guarantees that critical gatekeepers are well equipped to
Mr. Jeff Bassey (left) and Mr. Patrick Otieku-Boadu (right) facilitators of the forum.
champion the all-important cause of a result-driven team while ensuring job satisfaction can be a hallmark to churn multiple success especially within this period of uncertainty. This session provides that instructive edge that makes every member of the organisation take on the full responsibility of leading the business to achieve its set goals. “The ability to command a room with your words and get your audience to be attentive or star-struck by your enchanting words is a priceless skill that every corporate leader requires,” the organisers said. In most instances, however, a leader’s greatest need is not to
speak to the management or the board of an organisation, but to relate effectively with the team. People management skills are one of the top skills global leaders place much emphasis on. “You will appreciate priceless skills to manage teams remotely to achieve the needed results. “At almost every point in time, an organization has very limited resources which have to be optimised to produce the greatest results. Your company is no exception. “Well-thought-out approaches that yield maximum growth will require you to map out and coordinate other factors across the business. “This is the very essence of the
sales strategy session. Whether you are selling via digital channels or in-person, this module affords you a documented approach for prospecting and attracting highpaying clients.” The forum considers the role of all stakeholders charged to drive the organisation to its peak. Every organisation is keen on how well its team carries its vision and goals. High-performing companies place a high premium on the roles of quality and distinction in their business processes. This module raises the bar for the business team and introduces permanent traits of greatness that produce mind-blowing results of unmatched standards.
9
News
WEDNESDAY SEPTEMBER 1, 2021
Toyota Ghana launches genuine motor oil onto the automobile market
T
oyota Ghana Company Limited has launched its new Genuine Motor Oil (TGMO) into the Ghanaian automobile market. This is an engine oil designed for Toyota cars in mind. Mr. Anndrew Lampety, Head of Sales Operations at Toyota Ghana, speaking on behalf of Mr Kohui Yanaka, the Managing Director, said it would not be an understatement to say that the lifeline of an automobile was clean lubrication. Mr. Lampety made the remarks during the launch of the Motor Oil and seminar garages on the theme: “Choosing the Right Oil for Your Vehicle” in Accra. He said the longevity of a car's engine was greatly assured, using a genuine engine oil recommended by the manufacturer. The Head of Sales Operation said using motor oil that is not suitable for a Toyota vehicle create unwanted particle buildup in the engine, thereby causing the engine oil to deteriorate faster and reduce the overall life of the engine. “The TGMO is specially formulated with optimum
cleaning and protection capabilities for your Toyota vehicle, it also provides complete engine protection against friction and heat press for better performance and maximum engine life,” he added. He said the motor oil has been extensively tested to assure optimum performance in diverse driving conditions. Mr. Lampety said it is very
important to keep the Toyota vehicle functioning at its peak with motor oils that are, specially formulated for the vehicle. He said Toyota Ghana Company Limited would be selling three variants of the engine oil. He called on owners of Toyota vehicles to patronise Toyota Genuine Motor Oil, which is the preferred oil for their vehicle and urged them to be ambassadors to
these products in shops. Mr. Bala Balakrishnan, Sales Manager of Idemitsu, advised Toyota vehicle owners to be careful of counterfeit products being widely circulated on the market. He called on them to identify such activities and report them to the Toyota Manufacturing Company for immediate action.
GITFIC calls on Chairman and President of ECOWAS Bank
T
he leadership of the Ghana International Trade and Finance Conference (GITFIC) as part of their regional tour has called on the President and Chairman of the ECOWAS Bank for Investment & Development (EBID), Dr George Agyekum Donkor. The visit on Dr George Agyekum Donkor is also part of the collaboration and synergy building with partners. Mr. Selassi Koffi Ackom, Chief Executive Officer of GITFIC, said the bank having spent over US$3 billion on various Infrastructural Projects over the period within the Sub-Region; EBID is keen to seeing Industry and Private Sector development within the sub-region. He said they are enthused to collaborate with initiatives such as GITFiC. Mr. Ackom commended the president for the numerous development initiatives and pledged the support of GITFIC. "We are gearing up for our six regional breakfast conferences. This is critical. More clarity
is needed on the Pan-African Payment and Settlement Systems, Trade Liberalisation and the issue of the Eco."
Mr. Ackom said in Banjul GITFIC in collaboration with BJM Consultancy Management Co. Ltd will organize a meeting
which is slated for 12th October 2021 at Sir Dawda Kairaba Jawara International conference Centre.
10
Maritime
WEDNESDAY SEPTEMBER 1, 2021
10th FCWC West Africa task force meeting slated for Sept. 13-17 in Accra
T
he Fisheries Committee of the West Central Gulf of Guinea (FCWC) is hosting a four-day task force meeting in Accra to discuss interagency cooperation and regional collaboration since the last meeting in Liberia in September 2019. The meeting is the tenth regional meeting since the first in April 2015 in Ghana and it will again bring together directors of fisheries and heads of MCS
of the six FCWC member states and other fisheries MCS-related actors to share updates and review national and regional level activities. It will also be the platform to celebrates successes in MCS so far and push for further progress in the years ahead. “This tenth West Africa Task Force (WATF) meeting marks seven years of agencies working together at the national levels and Member States working together
at the regional level to stop illegal, unreported and unregulated fishing. The WATF has successfully operationalized the FCWC’s MCS mandate and many achievements have been chalked. It is important and necessary to highlight these achievements as we press on to build upon them for further concrete results in the future,” FCWC Secretary-General Seraphin Dedi stated. Key discussions for the
upcoming meeting include: a recap of the past 24 months; the Regional MCS Centre and updates on integration with national VMS systems; WATF cases and lessons learnt; a review and validation of the pilot regional observer programme project; and the process of the mid-term review. The WATF brings together the six member countries of the Fisheries Committee for the West Central Gulf of Guinea (FCWC) – Benin, Côte d’Ivoire, Ghana, Liberia, Nigeria, and Togo – to tackle illegal fishing and stop the trade in illegally caught fish. The Task Force is facilitated by the FCWC Secretariat and supported by a Technical Team that includes Trygg Mat Tracking (TMT) and Stop Illegal Fishing (SIF) with funding from the Norwegian Cooperation Agency (NORAD). Through active cooperation, information sharing and facilitating the operations of national interagency working groups, the West Africa Task Force is working together to stop illegal fishing.
World’s largest containership makes its first crossing through Suez Canal Global trade was disrupted as the first time after grounding in
T
he largest containership in the world, the 24,000 TEU Ever Ace, crossed the Suez Canal for the first time on 28 August 2021. The boxship measures 400 meters in length and 61.5 meters in width. It weighs about 235,000 tons and can transport 23,992 containers. The vessel is the most recent addition to the Evergreen Marine Corporation’s fleet. It was delivered to the company by South Korean shipbuilder Samsung Heavy Industries (SHI) in July this year. Ever Ace crossed the Suez Canal on its maiden voyage to Europe en route to the Port of Rotterdam. It had set sail from the Port of Taipei earlier in August 2021. The Suez Canal Authority (SCA) shared the moment on social media, and the captain and the crew were greeted after the successful crossing. The vessel is scheduled to arrive at the Port of Rotterdam on 4 September 2021 at around
3 p.m., according to the port authority. Ever Ace’s crossing of the Suez Canal comes just two weeks after Evergreen’s containership Ever Given transited the waterway for
March 2021. The Panama-flagged containership reached its planned destination in Rotterdam on 29 July 2021, almost four months after it got stuck in the Suez Canal.
hundreds of ships had to wait to pass through the 193-kilometerlong canal. About 15% of world shipping traffic transits the Suez Canal, the shortest shipping route between Europe and Asia.
11
News
WEDNESDAY SEPTEMBER 1, 2021
YEA Job fair to offer close to 300 job opportunities By Eugene Davis ugendavis@gmail.com
T
he CEO of the Youth Employment Agency (YEA), Justin Kodua Frimpong, has revealed that the agency’s upcoming maiden job fair is expected to create between 200 and 300 job opportunities for prospective job seekers. According to a 2020 World Bank report on youth employment programmes in Ghana, the country is faced with 12 percent youth unemployment and more than 50 percent underemployment, both higher than overall unemployment rates in sub-Saharan African countries. Despite major investments by both government and the private sector, this challenge will intensify if job opportunities remain limited, Mr. Frimpong said, explaining that this is the motivation behind YEA’s latest initiative. The two-day job fair, scheduled
for September 9–10 at the Accra International Conference Centre, will be organised on the theme “Bridging the Job Gap in Partnership with the Private Sector”. Mr. Frimpong bemoaned “a lack of access to employment services, [which] contribute[s] a great deal to the unemployment rate of the Ghanaian youth. “The job fair creates an opportunity to give the youth access to these services,” he added. He said over 70 companies have registered to participate in the job fair, spanning the health, agriculture, tourism, hospitality, manufacturing, insurance, security and banking sectors of the economy. The primary objective of the fair is to provide an opportunity for job seekers to go through live interview sessions towards getting employed by the participating companies. The fair also seeks to introduce available job avenues in the offing or on offer by the
Justin Kodua Frimpong
companies and business owners. Participating companies will be afforded access to a large pool of qualified job seekers to be readily interviewed. Apart from the live interview sessions and recruitment, job seekers will be given free training in Curriculum Vitae preparation, preparation for interviews and career advice. This is the first job fair after the YEA Job Centre was launched in October 2019. The centre is an initiative by the current YEA management to provide prospective job seekers with skills addition towards sustainable
job creation and employment opportunities. It has enabled over 3,000 young persons to gain permanent employment in both the public and private sectors. Since the establishment of the centre, 543 companies have signed up with it, with 120 companies outsourcing jobs through the centre. The job fair will be replicated in other regions, including the Western, Northern, Volta, Eastern and Ashanti Regions. Participating companies can pre-register on www. yeajobcentre.gov.gh
Ecommerce solutions to graduate unemployment in Ghana
E
ach year, many young Ghanaians graduate from the many tertiary institutions across the country. From training schools, universities, technical universities to aviation schools and other skill specific institutions, the numbers are alarming. Out of the over 100,000 graduates that enter the hunt for good jobs, only a handful are usually successful. After years of hard work, dedication and learning, it sometimes is frustrating to leave school with great expectations for the job market only to not see any of the dreams materialize. Maybe, this gap between the heavy load of graduates and the total number of available jobs can be attributed to a general lack of structured channels. Apart from government institutions and a few public sector jobs, the biggest sector that employs many young graduates is the private sector. Entrepreneurship has been targeted as one of the many solutions to graduate unemployment in Ghana but there is always the obstacle of lack of adequate capital. Even when young graduates have great ideas and proposals, finding the right financier can be hectic. The bureaucracies and long list of requirements sometimes proves too much for
them.In the wake of recent global happenings, economic troubles and pandemics many Ghanaians are becoming creative and taking advantage of ecommerce. Online retail and ecommerce is poised to provide solutions to graduate unemployment in Ghana. With the expansion of ecommerce and the diversity it brings, the opportunities are endless. Today many ecommerce businesses are present in Ghana offering different solutions. These include marketplaces, fintech, logistics, on demand services among many others. For many graduate unemployed persons there are many opportunities in ecommerce providing great solutions. Of the many solutions that ecommerce provide, let’s look at some really simple yet beneficial ones. 1. The job search : Work from home has become very popular
especially over the past 18-24 months due to covid-19. Even already established entities and institutions have implemented this in order to keep their employees as well as consumers safe. The upside about this is that, for unemployed graduates, they can even apply for jobs, have virtua interviews and even go through the probation periods without having to spend on transportation to and from the office. There is also the added flexibility of working more than one job at a time. Some jobs require 100% commitment and dedication while some can be balanced with other less consuming jobs. For example, an unemployed graduate can start an ecommerce blog and write for companies while also managing social media pages for SME’s and small brands. In little to no time, he/she will gain adequate experience to either get a bigger
well paid job or open their own company. 2. Unlimited potential consumer base : One very vital thing every entrepreneur looks at before attempting to start a business is potential consumers. Without consumers, there are no sales and without sales, there is no profit. Ecommerce provides a solution to this as many consumers can be found online. Many of them are specific while a couple of them are open. With millions of consumers looking for millions of products and services, there is great potential to build a business online. 3. Overlapping sectors These days, visiting physical shops is limited for many consumers. The new normal is ecommerce where everyone orders groceries, essential items and several other products online. After the orders are made, other platforms and processes are engaged to make the entire experience seamless. This is an area where young unemployed graduates can explore. With deliveries and logistics being an integral part of the ecommerce process, owning fleets or managing fleets from the comfort of your home can be rewarding. Joining referral programs online to earn commissions also is a good way to manage graduate unemployment.
12
WEDNESDAY SEPTEMBER 1, 2021
13
Mining
WEDNESDAY SEPTEMBER 1, 2021
Higher quality institutional capacity: Pillars for faster and competitive economic diversification By Dr Samuel Frimpong Boateng CEO, Afrideg Ghana Limited President, Centre for Investments, Trade and Industry
A
very important contribution to achieving faster monetisation of mining and other natural resource revenues can be made by cogent transformation – using flexible, higher quality institutions and change agents – into domestic physical assets such as infrastructure, diversified manufacturing capacity, or service provision, or into human capacity and capital (e.g. by improving skills and technology and expanding education) or into social capital (e.g. by social programmes that reduce social tensions or contribute to the creation of an efficient institutional systems, for example by removing thick bureaucratic layers, ensuring fluid collaborations of institutions and public change agents and allowing seamless flow of information among public systems and between policy innovators and the private sector). The conversions will only thrive on flexible and quality institutions that structure creative policies, ensure innovative and efficient manufacturing financing, social inclusions and creative societies. This package of institutional innovativeness can go a long way in ensuring mineral resource revenues settle more into optimal industrial, human and social investments than into consumption. Ghana can only accrue and achieve net savings from her natural resources through active investments on the premise of prudent industrial value chain development, lift into higher entrepreneurial energies, industrial diversification and international trade expansion. Diversifying royalties into anchor industries through fiscal linkages could push the country to make positive genuine savings with increased capital stock when the finite, non-renewable natural resources are exploited and gone and even leaving the environment seriously depleted. Diversification is documented in most well-managed resource rich countries to be more superior to industry concentration in converting mineral and other natural resources into built capital and other forms of wealth. If Agyapa is reintroduced in
any form, it must come with an advanced intention to have very strong development and diversification agenda that mostly seek to support and expand efficient, high impact anchor industries to edge up resource savings into more sustainable non-resource capital. What is needed, in a drive to raise entrepreneurs, support burgeoning young firms and pursue industrialisation, is to avoid thick regulatory barriers that allow inefficient reallocation of capital or weak enforcement of competition policy which often permits unproductive firms to keep operating with generous stimulus packages. There has to be well designed institutional capital with interventions on industrial chains instead of Government stimulus support programmes structured around individual unproductive incumbent firms or other quasi-fiscal support for inefficient incumbents which may keep them as large players in the market, staving off budding and more efficient firms from joining the space. Ensuring raised institutional quality holds the key in addressing challenges that come with pursuing fiscal, production, consumption and market linkages. There are several development difficulties that are naturally associated with macroeconomic swings arising out of resource revenue volatility, potential misallocation of resources, concerns about Dutch disease, fiscal and external sustainability issues as well as resource and environmental depletion. Natural resource revenue volatility raises market risks and thereby damages
investment and growth. It’s for this reason that policy innovation must ensure the structuring of high optimal and resilient institutional capital necessary for the private sector to flourish and for resource diversification strategies to accrue net savings for the country. This depends primarily on how well fiscal policy is insulated from commodity price volatility. Implemented well, properly designed industrial diversification strategy, using natural resource revenue as catalyst, will improve economic performance—stabilizing the economy, boosting employment, and increasing productivity. It might lead to greater economic diversification and— more importantly, bring about a more diversified development. Building evenhanded institutional capital effective for efficient investments of resource revenues and designing shortrun countercyclical fiscal policies ensure equitable net national savings with minimal leakages. Strong institutions that encourage entrepreneurs to take risks but
disrupts collusive behaviours or the “capture” that is linked to powerful vested interests must spring up to push the country up the scale of accumulating improved human skills and built (non-resource) capital. These institutions must have the capability to prudently convert resource rents into monetised economic assets akin to trends in Botswana, UAE, Norway, Alberta-Canada, Chile, and Malaysia which are reaping the benefits of early efforts to diversify through improvements in income structures and economic outcomes. These countries have complemented diversification with stronger institutions, strategic resource governance mechanisms, entrepreneurial upscale, cogent extractives and industrial value chain development, smart local content programmes, more flexible laws, and strategic FDI promotion designed to scale up industrial competitiveness, export development, economic management and strategic governance.
14
WEDNESDAY SEPTEMBER 1, 2021
15
Feature
WEDNESDAY SEPTEMBER 1, 2021
Don't break up social media, bifurcate it
By Luigi Zingales
H
aving broken up an incumbent media oligarchy and augmented people’s freedom of expression, social media is as transformational as the printing press was 500 years ago. But to ensure that the technology does more good than harm, its core functions should be separated from each other. After being celebrated for playing a central role in the Arab Spring, social-media platforms are now blamed for any outcome that traditional media outlets dislike – from the Brexit referendum and Donald Trump’s election to political polarization more generally. Growing disenchantment with social media has led to growing demands for regulation. The pressure is now great enough that Facebook, fearful of being shackled by the state, has sought to lead the regulatory effort itself, advertising heavily to express its own support for such policies. But what type of regulation do we need? To answer that question, we first must appreciate the transformational nature of social media, which is arguably comparable to that of the printing press in fifteenth-century Europe. Before the printing press, books were unaffordable, and their production had to be subsidized by the Catholic Church, which thus maintained a monopoly over knowledge. But once the printing press arrived, books become affordable for the merchant class. And because most merchants were not fluent in Latin, demand for Bibles printed in the vernacular surged. The printing press thus changed not only the language of the books but also the style and tenor of debate. While the scholastic debates of the Middle
Ages were fierce, they had always been educated and elevated in tone. But with the printing press came the Reformation, which featured theological debates full of insults and theater. Then as now, everyone understood that highly charged intellectual wrestling would produce greater sales. The Catholic establishment’s reaction to this new age was multifaceted, but three of its decisions are worth highlighting: power was recentralized in the hands of the pope; the Index of Forbidden Books was created; and the Inquisition was ramped up to protect Catholic souls from preachers of “fake knowledge.” It is humbling today to see which books the Catholic Church forbade. Within its Index were many of the most important works of Western culture, from Niccolò Machiavelli and René Descartes to Galileo Galilei and Immanuel Kant. While the printing press broke a monopoly, social media infringed on a cozy oligopoly. Before social media, everybody was free to speak, but not everybody had the right to a megaphone. While printing texts was relatively cheap, distributing them was not – and broadcasting was even more expensive, when it was allowed at all. As a result, access to megaphones was limited to those expressing ideas that advertisers found palatable. To administer this cozy oligopoly, a new class of journalists emerged. They chose the topics to discuss, the books to read, and the music to listen to. They also preselected presidential candidates, helped swing elections, and even advised governments. Elite journalists were the priests of the new order. When social media shattered this clannish cartel, the incumbent
power’s kneejerk reaction – as in the sixteenth century – was to try to regain control of information. The general process is the same: certain topics are proscribed on Facebook and other platforms, and certain users are excommunicated. And yet, we should know from history that this approach does not work. Martyrdom is the best form of publicity; being “canceled” can be a launchpad for even greater success. To regulate social media effectively, we should focus on separating the effects of technology, which are here to stay, from the effects of a particular business model, which regulation can alter. The problem is not that people are allowed to post crazy things online; as long as they are not committing any crime, they should be free to express themselves. The problem, rather, is social media refracted through a business model that maximizes profit by promoting the craziest, most inflammatory ideas. This model is facilitated by social-media platforms’ immunity from legal or reputational consequences. Newspapers have long been held responsible – both legally and reputationally – for what they print. But owing to Section 230 of the US Communications Decency Act of 1996, social-media companies have avoided legal liability for what appears on their platforms. And when they draw criticism for promoting the craziest content, they routinely deflect the blame to an algorithm (even though they themselves have designed their algorithms to maximize the time users spend on a platform). Social-media platforms play two roles: they operate networks connecting billions of users, and they decide what content those users see. Newspapers
have played this kind of editorial role for centuries, but they have done so in a highly competitive environment. The same cannot be said of the social-media environment today. With around 72% of the US social-media market, Facebook is effectively a monopolist, with all of the negative consequences that monopoly entails. This is where regulation can help: by separating the “social” from the “media.” In many countries, the electric power grid – a natural monopoly – is separated from electricity production. In the same way, we should separate social media’s networking infrastructure from the editorial role. Network externalities make the first activity a natural monopoly, while the editorial function would benefit from competition. Importantly, the company managing the virtual grid should not be allowed to enter the editorial business. That would allow it to kill off any competition by subsidizing one activity with the other – exactly the system we have today. How would these two separate layers make money? The competitive layer offers many options: firms could advertise, sell data, or charge customers for content or for the privilege of not receiving ads and not having their data sold. The virtual grid – as with any natural monopoly – should charge a regulated price for access to the infrastructure. Luigi Zingales, Professor of Finance at the University of Chicago, is CoHost of the podcast Capitalisn’t.
16
WEDNESDAY SEPTEMBER 1, 2021
17
Feature
WEDNESDAY SEPTEMBER 1, 2021
The AI revolution and strategic competition with China
By Jeffrey D. Sachs
A
rtificial intelligence is going to reorganize the world and change the course of human history. With China increasingly using the technology to usher in a new form of authoritarianism, the world’s democracies must come together and stand up for their own values and strategic interests. The world is only starting to grapple with how profound the artificial-intelligence revolution will be. AI technologies will create waves of progress in critical infrastructure, commerce, transportation, health, education, financial markets, food production, and environmental sustainability. Successful adoption of AI will drive economies, reshape societies, and determine which countries set the rules for the coming century. This AI opportunity coincides with a moment of strategic vulnerability. US President Joe Biden has said that America is in a “long-term strategic competition with China.” He is right. But it is not only the United States that is vulnerable; the entire democratic world is, too, because the AI revolution underpins the current contest of values between democracy and authoritarianism. We must prove that democracies can succeed in an era of
technological revolution. China is now a peer technological competitor. It is organized, resourced, and determined to win this technology competition and to reshape the global order to serve its own narrow interests. AI and other emerging technologies are central to China’s efforts to expand its global influence, surpass the economic and military power of the US, and lock down domestic stability. China is executing a centrally-directed systematic plan to extract AI knowledge from abroad through espionage, talent recruitment, technology transfer, and investments. China’s domestic use of AI is deeply concerning to societies that value individual liberty and human rights. Its employment of AI as a tool of repression, surveillance, and social control at home is also being exported abroad. China funds massive digital infrastructure projects around the world, while seeking to set global standards that reflect authoritarian values. Its technology is being used to enable social control and suppress dissent. To be clear, strategic competition with China does not mean we should not work with China where it makes sense. The US and the democratic world must continue to engage with China in areas such as health care and
climate change. To stop trading and working with China would not be a viable path forward. China’s rapid growth and focus on social control have made its techno-authoritarian model attractive for autocratic governments and tempting for fragile democracies and developing countries. Much work needs to be done to ensure that the US and the democratic world can package economically viable technology with diplomacy, foreign aid, and security cooperation to compete with China’s exported digital authoritarianism. The US and other democratic countries are playing catch-up in preparing for this global tech competition. On July 13, 2021, the National Security Commission on Artificial Intelligence (NSCAI) hosted a Global Emerging Technology Summit that showcased an important comparative advantage that the US and our partners around the world retain: the broad network of alliances among democratic countries, rooted in common values, respect for the rule of law, and the recognition of fundamental human rights. The global technology competition is ultimately a competition of values. Together with allies and partners, we can strengthen existing frameworks and explore new ones to shape
the platforms, standards, and norms of tomorrow and ensure that they reflect our principles. Extending our global leadership in technological research, development, governance, and platforms will put the world’s democracies in the best position to harness new opportunities and defend against vulnerabilities. Only by continuing to lead in AI developments can we set standards for the responsible development and use of this critical technology. The NSCAI’s final report provides a roadmap for the democratic international community to win this competition. First, the democratic world must use existing international structures – including NATO, the OECD, the G7, and the European Union – to deepen efforts to address all the challenges associated with AI and emerging technologies. Here, the United Kingdom’s current presidency of the G7, with its robust tech agenda and efforts to further cooperation on a range of digital initiatives, is encouraging. The G7’s decision to involve Australia, India, South Korea, and South Africa reflects an important recognition that we must convene democratic countries from around the world in these efforts.
CONTINUED ON PAGE 19
18
WEDNESDAY SEPTEMBER 1, 2021
19 CONTINUED FROM PAGE 17 Likewise, the newly launched US-EU Trade and Technology Council (which in many ways mirrors NSCAI’s call for a US-EU Strategic Dialogue for Emerging Technologies) is a promising mechanism to align the world’s largest trading partners and economies. Second, we need new structures, such as the Quad – the US, India, Japan, and Australia – to expand dialogue on AI and emerging technologies and their implications, and to enhance cooperation in standards development, telecommunications infrastructure, biotechnology, and supply chains. The Quad can serve as the foundation for broader cooperation in the IndoPacific region across government and industry. And, third, we need to build additional alliances around AI and future technology platforms with our allies and partners. The NSCAI has called for the creation of a coalition of developed democracies to synchronize policies and actions around AI and emerging technologies across seven critical areas: • Developing and
WEDNESDAY SEPTEMBER 1, 2021
operationalizing standards and norms in support of democratic values and the development of secure, reliable, and trusted technologies; • Promoting and facilitating coordinated and joint research and development on AI and digital infrastructure that advances shared interests and benefits humanity; • Promoting democracy, human rights, and the rule of law through joint efforts to counter censorship, malign information operations, human trafficking, and illiberal uses of surveillance technologies; • Exploring ways to facilitate data-sharing among allies and partners through enabling agreements, common data archival procedures, cooperative investments in privacy-enhancing technologies, and by addressing legal and regulatory barriers; • Promoting and protecting innovation, particularly through export controls, investment screening, supply-chain assurance, emerging-technology investment, trade policy, research and cyber protections, and intellectual-property alignment; • Developing AI-related talent by analyzing labor-market challenges, harmonizing skills
and certification requirements, and increasing talent exchanges, joint training, and workforcedevelopment initiatives; and • Launching an International Digital Democracy Initiative to align international assistance efforts to develop, promote, and fund the adoption of AI and associated technologies that comports with democratic values and ethical norms concerning openness, privacy, security, and reliability. This momentum can be maintained only by working together. Partnerships – between governments, with the private sector, and with academia – are a key asymmetric advantage that the US and the democratic world have over our competitors. As recent events in Afghanistan have shown, US capabilities remain indispensable in allied operations, but the US must do more to rally allies around a common cause. This era of strategic competition promises to transform our world, and we can either shape the change or be swept along by it. We now know that the uses of AI in all aspects of life will grow as the pace of innovation continues to accelerate. We also know that our adversaries are determined to turn AI capabilities against us.
Now we must act. The principles we establish, the investments we make, the national-security applications we field, the organizations we redesign, the partnerships we forge, the coalitions we build, and the talent we cultivate will set the strategic course for America and the democratic world. Democracies must invest whatever it takes to maintain leadership in the global technology competition, to use AI responsibly to defend free people and free societies, and to advance the frontiers of science for the benefit of all humanity. AI will reorganize the world and change the course of human history. The democratic world must lead that process. Eric Schmidt, a former CEO and chair of Google/Alphabet, is Chair of the National Security Commission on Artificial Intelligence.
20
Markets
WEDNESDAY SEPTEMBER 1, 2021
WEEKLY MARKET REVIEW FOR WEEK ENDING AUGUST 27, 2021
CONTINUED ON PAGE 21
21
WEDNESDAY SEPTEMBER 1, 2021
CONTINUED FROM PAGE 20
WEEKLY MARKET REVIEW FOR WEEK ENDING AUGUST 27, 2021
22
BUSINESS24.COM.GH WEDNESDAY SEPTEMBER 1, 2021
NO. B24 / 242 | NEWS FOR BUSINESS LEADERS
MONDAY MAY 3, 2021
WEDNESDAY SEPTEMBER 1, 2021
UGBS holds strategic retreat for administrative staff
T
he administrative staff of the University of Ghana Business School (UGBS) has embarked on a strategic retreat at Rock City Hotel, Kwahu in the Eastern region of Ghana. The programme was primarily an administrative workshop based on revitalising committees in the school, development of training manuals and strategic plans, as well as presentations on performance audits of the various departments and units. Present at the event were: the Dean of the Business School, Professor Justice N. Bawole; the School Administrator, Mr. Emmanuel Poku-Sarkodee; the Assistant Registrar, Mrs. Selina Saaka, among other staff of the School. Mr. Emmanuel Poku-Sarkodee opened the programme with a welcome address and an overview of the workshop. He indicated that the main reason for organising the workshop was to increase performance and, in turn, increase output. He reckoned that at every level of performance there is the need to create value rather than destroy it. “It is, therefore, necessary that all staff embrace quality in a way that will allow the
School (UGBS) to be in tune with the best practices”, he said. In his statement at the meeting, Professor Justice Bawole disclosed that there is always a tendency for a leader to over-assess himself. He revealed that if a subordinate was to assess or rate a leader, it is likely that the subordinate would do this based on what would happen to his work after that evaluation. Professor Bawole advised that it is always important that leaders listen to their supervisees and accept their faults in how they perform in order not to miss a mark in their performance. “Therefore, in any way, be it good or bad, treat people nice because in the end, we all have a school to build”, he remarked. He also spoke about training programmes and short courses for staff. The Dean suggested that the
School considers what pertains in the University regarding training, and he indicated that a strong case would be made that UGBS runs lots of academic programmes and, as such, training of its staff to be more equipped for the job would be extremely beneficial. He advised that emphasis should be on skills needed by staff to enable them to work satisfactorily and not necessarily to travel outside the country. The dean, therefore, suggested that drivers could also get training in logistics or maintenance from a reputable institution such as Toyota Ghana Ltd, etc. This would be funded by the School whereas gardeners could also be trained at parks and gardens. There was also a discussion on job rotation, which is very essential since it would provide
staff with knowledge on all the departments/units of a particular institution. This could be done every 4 to 5 years. He added that the University’s policy on job rotation is limited to staff within a particular college. The school administrator, on his part, led a discussion on the development of a Strategic Plan for the Administrative Unit of the Business School. He stated that in adopting a good strategic plan for the unit, it was important to benchmark for best practices, and thus there should be competitive advantage and the improvement of things to create value. To get everyone involved in developing the strategic plan, members were divided into four groups to develop administrative core values, administrative philosophies, and operation principles. The retreat ended with a commendation message from the Assistant Registrar, Mrs. Selina Saaka, to the Dean, School Administrator, and all participants for engaging in the retreat. She further added that all ideas discussed should be put into use for the advancement of the Business School.
‘Developing vibrant financial sector requires commitment’
T
he Governor of the Bank of Ghana, Dr Ernest Addison, says developing a vibrant financial sector that is capable of harnessing financial resources available for growth and development requires the commitment of all key stakeholders. Dr Ernest Addison said the bank would continue to pursue policies and programmes aimed at improving the operational environment to build customer confidence and ensure the
stability and soundness of the financial sector. Dr Addison was speaking at the 40th Anniversary Celebration of the Akuapem Rural Bank at Mamfe Akuapem in the Eastern Region. He said 40 years of rural banking is remarkable and “I applaud the promoters, past management teams, and the current directors of the bank for this achievement.” He said rural and community banks continue to be drivers for financial inclusion and socio-
economic development in Ghana, saying rural and community banking was conceptualised at a time when access to bank credit for farmers and traders, especially in rural areas, was inadequate. The governor said it was envisaged as a unique business model where rural banks thrived based on community empowerment, community ownership and community participation in governance. He said in 2017, the Bank of Ghana embarked on a clean-up exercise of the financial sector, having identified the prevalence of system risks across several institutions, including some Rural and Community Banks (RCBs). These included severely impaired capital, low asset quality, liquidity crises, and poor governance structures, which threatened depositors’ funds and undermined efforts aimed at promoting financial inclusion.
He said after the initial cleanup of the banking sector, the bank collaborated with the ARB Apex Bank to reposition RCBs to better realign with the founding objectives of fostering rural economic development. “Given the unique nature and expected role of RCBs in the financial sector, the Bank has rolled out some initiatives, including an ongoing review of the Apex Bank model as well as the regulatory and supervisory frameworks to restructure the rural banking concept in Ghana,” he added. He said to address lingering corporate governance and risk management weaknesses in the rural banking sector, the Bank published the Corporate Governance Directive and Risk Management Guideline for rural and community banks. GNA