Business24 Newspaper (February 19, 2020)

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81 Private varsities face imminent closure Eugene Davis is ‘2019 Best Parliamentary Reporter’

By Benson Afful

Majority of the 81 private universities operating in the country face imminent collapse, if measures are not put in place to address the sustained decline in enrolments, Mr. Dominick Osei Aboagye, the Registrar of Accra Institute of Technology (AIT), a technology-focused private university, has said.

In an exclusive interview with the Business24, he disagreed with analysts who believe that the first batch of graduates from the government’s Free Senior High School (SHS) programme, estimated to be about 400,000, will opt for private universities after limited spaces available at public universities are filled.

“Look, the truth is that this Free SHS students cannot save private universities from collapse. These students who are enjoying free SHS, how many of them can afford private university education. These Free SHS beneficiaries, most of them we know may not have been able to access secondary education but for the free SHS. So, do you think they can afford to pay private university fee?”

“Most SHS graduates prefer public universities as their first choice so the excess is what the private universities admit.

So, by the time the universities finish their admissions then we take the surplus and the

SOURCE: NAB

surplus how many can afford private universities,” he added.

Distance Education sinks Private varsities According to him, the only solution to the ‘dying’ private universities is for public universities to stop their distance education programs so that students who could not be admitted because of the lack of space, will consider enrolling in private universities.

He argued that most of the distance learning students are within the working class who can afford to pay every amount to get a university degree in a flexible academic environment.

These, students, he said, are now all studying in the many satellite campuses of public universities spread across the country. “So, when you check the records of University of

Cape Coast, you will see that they have more distance learning students than that of regular students. An area which used to be the stronghold of private universities has now become a money-making ground for the public ones,” he said.

Drying up of foreign students He said the private universities also used to depend on foreign students from Nigeria, Congo and Gabon but according to him, the Nigeria government have for the last few years made an effort to prevent their students from coming to Ghana for higher education.

He said one of the reasons that made Nigerian students to come to Ghana for university education was the serial strikes that used to happen in Nigeria’s universities, a problem he said the country’s government has

resolved.

“When was the last time you heard that Nigerian university lecturers have gone on strike. So that is keeping Nigerian students in Nigeria to pursue higher education.” Checks by the Business24 revealed that undergraduate student enrolment has been falling for the past two academic years in private universities as a result.

Demand, challenges and readiness The total population of Ghana’s tertiary students has hit a record of 453,314, a figure which is equal to the first batch of the free

MORE ON PAGE 2

Mr. Eugene Davis, who is currently the Head of Parliamentary Business and Commodities at Business24 e-Newspaper, has been adjudged as the 2019 Best Parliamentary Reporter at the maiden Parliamentary Reporting Awards held at Parliament House in Accra.

The recognition is based on impact, background, accuracy and attribution of stories written and published by Mr. Davis under the year in review.

A total of eight awards were given out on the day. Five of the awards went to members of the Parliamentary Press Corps while three were given to some Members of Parliament for their outstanding performance in the House over the years.

MORE ON PAGE 2

MiDA retrofit works to save economy GH¢2.52m annually

By Patrick Paintsil

Planned retrofitting works in six public institutions by the Millennium Development Authority (MiDA), under its Energy Efficiency and Demand Side Management Project (EEDSM), is expected to save the economy an estimated GH¢2.52million annually in energy cost.

According to data from the

The retrofit works include the installation of energy efficient electrical appliances such as air-conditioners, refrigerators, ceiling fans and LED lights.

MiDA rolled out a comprehensive ‘Energy Efficiency and Demand Side Management’ (EEDSM) project in June 2018, aimed at ensuring energy efficiency and sustainable power consumption in the country.

The project was to train energy auditors of public insti-

authority, the energy efficiency intervention project will reduce the energy bill of the six public institutions by 30percent with Korle-Bu Teaching Hospital tipped to save up to GH¢1.7million—the biggest beneficiary.

The other beneficiary institutions are: University of Ghana, Adabraka Policlinic, Department of Urban Roads, Ministry of Education, and the Ministry of Health.

FEATURE

FEATURE

THE CASE FOR GLOBAL HEALTH DIPLOMACY

THE MONETARIST FANTASY IS OVER

The coronavirus crisis is a reminder of why governments must regard health as an essential component of foreign policy. PAGE 5

The forced resignation of the United Kingdom’s Chancellor of the Exchequer, Sajid Javid, is the latest sign that macroeconomic policy is being upended PAGE 11

tutions to help their various institutions conserve energy with retrofit work on six public institutions: namely Korle-Bu Teaching Hospital, Adabraka Polyclinic, University of Ghana, Dept. of Urban Roads, and the Ministries of Education and Health to convert their energy supply to solar.

Other key deliverables under the project include replacing MORE ON PAGE 2

INTERNATIONAL MARKET

ECONOMIC INDICATORS

AS AT FEB. 18, 2020 BRENT CRUDE $/BARREL: -0.17 ($57.02) NATURAL GAS $/MILLION BTUS: +0.09 ($1.93) GOLD $/TROY OUNCE: +3.00 ($1,589.40) SILVER $/TROY OUNCE: +0.12 ($17.86) CORN $/BUSHEL: +1.75 ($383.75) COCOA $/METRIC TON: +0.00 ($2,886.00) COFFEE ¢/POUND: +0.00 ($111.35) SUGAR ¢/POUND: +0.00 ($14.55)

EXCHANGE RATE (INT. RATE): USD$1 =GH¢5.3450 EXCHANGE RATE (BANK RATE): USD$1 =GH¢5.4800 POLICY RATE:16% GHANA REFERENCE RATE: 16.11% INFLATION RATE: 7.8% PRODUCER PRICE INFLATION: 13% 91 DAY TREASURY BILL INTEREST RATE: 14.6898% AVERAGE PETROL AND DIESEL PRICE: GHC 5.48

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News/Editorial Eugene Davis is ‘2019 Best Parliamentary Reporter’ continued from page 1 Other winners include: Julius Yao Petetsi of the Ghanaian Times-Best Public Accounts Reporter of the Year; Mr. Thomas Fosu Jnr. of the Daily Guide-Best Plenary Reporter of the Year; and Mr. Benjamin Mensah of the Ghana News Agency-Best Appointment Committee Reporter.

Mr. Edwin Arthur, a former Dean of the Press Corps was recognized for his long service and contribution to the Press Corps.

On the MPs, Mr. Alban Sumana Bagbin, the Second Deputy Speaker of Parliament and MP for Nadowli/Kaleo received a citation for his invaluable support to the media especially to the press corps and his contributions to Ghana’s democracy.

Mr. Afenyo Markin and Mr. Emmanuel Armah Kofi Buah, MPs for Effutu and Elembelle constituencies respectively received citations as the Most Media Friendly MPs in the House.

20K for Education fund In a related development, the Parliamentary Press Corps (PPC) of Ghana, has set a target to invest a seed capital of GH¢20,000 equivalent of $3,755.79 dollars in an Education Fund to support members of the Corps.

Announcing this at the maiden Parliamentary Reporting Awards at Parliament House in Accra, Nana Agyeman Birikorang, the Dean of PPC, said: “We will soon launch the PPC Education Fund which will give grants to members of the Corps who are in Tertiary Institutions furthering their education”.

To this end, he added, “we are considering a seed money of twenty thousand Ghana cedis(GH¢20,000) to start our Education Fund”.

Most of the PPC members are in schools either pursuing their Degree course or Masters programme and sometimes all they need is just as little as two thousand (GH¢2,000) to pay for tuition per semester and it is difficult to raise that money but with the creation of the Fund – colleagues will be supported, which will go a long way to improve on their reportage, he noted.

For the Education Fund to be attainable, he appealed to the Speaker of Parliament, Prof.

Aaron Mike Oquaye as well as Members of Parliament to support the initiative.

Editorial: Rescue our bleeding private universities!

Checks by the Business24 has revealed that undergraduate student enrolment has been falling for the past two academic years in private universities.

They have also lost hold on distance learning, which used to be their stronghold, because public universities have tapped into that aspect of education.

Deepening their woes, our checks have also revealed a sharp decline in the number of foreign students— specifically from Nigeria, Congo and Gabon--enrolling in Ghanaian private universities.

This is because that made home education unattractive to them including serial strike actions by teachers in Nigerian universities, for instance, have been addressed.

We also gathered that the Nigeria government has, for the last few years, made an effort to prevent their students from coming to Ghana for higher education.

These developments have placed private universities on the verge of collapse, should stakeholders fail to fashion out a mechanism to keep them in business.

Registrar for tech-based private

university, Accra Institute of Technology (AIT), has indicated that the only solution to the ‘dying’ private universities is for public universities to stop their distance education programs so that students who could not be admitted because of the lack of space, will consider enrolling in private universities.

He argued on the fact that distance learning students are within the working class who can afford to pay every amount to get a university degree in a flexible academic environment.

This is a tough call but at the same time necessary and timely if we were to salvage our private universities, who play a very critical role in the national education structure.

We also urge all relevant stakeholders to engage the owners of these private universities to work out a more sustainable approach to tackling the challenges of private university education in the country.

GRA partners the Netherlands to build capacity on transfer pricing

By Kwasi Anku

The Ghana Revenue Authority (GRA) has signed a Memorandum of Understanding (MoU) with the Netherlands Tax and Customs Administration to build the capacity of personnel on transfer pricing and risk-based audit.

The MoU, which covers two main areas, will build the capacity of audit officers of GRA in the Domestic Tax Revenue Division in the area of risk-based audits while enhancing the skills of the Transfer Pricing Unit of the large taxpayer office.

Reverend Ammishaddai Owusu-Amoah, the Acting Commissioner-General of the GRA, signing the agreement on behalf of the Authority said the duration for the programme would be 18 months starting from March, 2020.

He said the signing of the MoU has come at an opportune period, when GRA has earmarked a number of measures for its transformation agenda.

Transfer pricing is the process where multinational entities transact with those entities that have common controlling power or related parties and the profit earned by such proceeds is transferred to the country which has the least tax blocks.

He said transfer pricing was an aspect of tax avoidance that multinational companies exploit to reduce tax payment.

He commended the Netherlands for the support in the area of transfer pricing since the risks that came with auditing large and complex businesses were associated with transfer pricing issues.

He said the terms of reference would enable the Netherlands to assist GRA to build their competencies so that “we achieve excellence in the areas of transfer pricing and audits.”

Rev. Owusu-Amoah said the Authority would tap into the knowledge and experience of the Netherlands officials and that would also help guild the capacity of audit staff to enable them appreciate techniques in auditing to reduce abuse and ultimately rake in the needed revenue.

MiDA retrofit works to save economy GH¢2.52m annually

He urged the officials of GRA, who would be working with the Netherlands team to take advantage of the opportunity, learn all that they could and become well equipped to handle complex audits easily and effectively.

Mr. Ron Strikker, the Netherlands Ambassador to Ghana, who signed the agreement on behalf of his Country said transfer pricing is a very important theme for countries like Ghana but also for the Netherlands.

He said it was the desire of every country for companies to pay their fair share of taxes and ensuring that taxes were fixed at the accurate level, adding that the government of Netherlands was very clear on that policy.

81 Private varsities face imminent closure

continued from page 1 an estimated 18,000 streetlights within Accra West and Accra East areas with LED ones, and an energy efficiency survey targeting 1,000 households across the country.

Chief Executive Officer of MiDA, Mr. Martin Eson-Benjamin, at a recent press soiree in Accra, indicated that the retrofitting exercise will allow for efficiencies in energy consumption and therefore lower the energy bills of beneficiary institutions.

“MiDA is fully committed to meeting the aspirations

of the compact, the expectations of the Government of Ghana and the Government of the United States, who are providing the funds,” he said.

He added: “Counting from today, the Power Compact has one year, six months and 12 days to end, we have prioritised the completion of two Bulk Station Points (BPS) at Pokuase and Kasoa, ensure efficient and sustainable delivery of power to ECG’s consumers in the micro, small, medium and large industries and institutions, as well as markets, economic enclaves and domestic consumers,”

Editorial:

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Mr. Strikker explained that transfer pricing focuses on transactions between companies – a company and a daughter company – with the risk of not accurately pricing the services by the mother company to the daughter company, which ought to be avoided.

He said profit should be fixed at the just and accurate level and that with much attention given to the issue of transfer pricing, the Netherlands was delighted to assist Ghana with technical expertise in that direction for the 18 months period.

He said this agreement was one of the many cooperation that the Netherlands has with Ghana on taxation, nothing that, there is already an existing co-operation on compliance and risk management.

The Netherlands also has in place taxation revenue for economic enhancement with a focus on property tax in 32 Municipalities, which is between Ghana’s Ministries of Finance and Local Government and Rural Development and the Dutch Association of Municipalities.

Dominic Andoh: E ditor Eugene Kwabena Davis: Head of Parliamentary Business & Commodities Benson Afful : Head of Energy & Education Patrick Paintsil : Head of Maritime & Banking Eliezer Mensah: Head of Production Marketing: Alexander Lartey Agyemang: Business Development Manager Ruth Fosua Tetteh: Deputy Business Development Manager

continued from page 1 Senior High School students (424,092).

Last year, the ten traditional universities were able to admit about 90,000 students; Technical Universities altogether admitted about 40,000 students; Colleges of education about 20,000; and Nursing training about 7,000.

This brings the total available slots in tertiary institutions to about 157,000 as against 424,092 students expected to vie for these limited spaces.

Gifty Mensah: Marketing Manager Irene Mottey: Sales Manager Edna Eyram Swatson: Special Projects Manager Events: Evelyn Kanyoke Snr. Events Consultant Finance/Administration Joseph Ackon Bissue: Accountant Ampomah Akoto: Director of Operations

BUSINESS24 | WEDNESDAY FEBRUARY 19, 2020

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News

Increased intra-African trade will create jobs, spur prosperity—IIA

By Kwasi Anku

Mr. Clarence Nartey, the Country Director of Invest in Africa (IIA) has said embracing intra-African trade will help African countries accelerate economic diversification and industrialisation efforts, creating jobs and enhance inclusive growth and prosperity.

“It is the surest path to higher value rungs in Global Value Chains,” the Country Director said.

Mr. Nartey in an interview with Busniess24 said come June 2020, firms in globally competitive countries like South Africa, Rwanda, Ethiopia and Kenya, with experience in regional value chain, would seize the opportunity and march across Africa and it was important for local businesses to start getting themselves ready or risk being sidelined or swallowed up.

On the African Continental Free Trade Area (AfCFTA) agreement, he said IIA was positioning Small and Medium Scale Enterprises (SMEs) under its programmes, to enable them

Clarence Nartey

explore opportunities that come with the agreement.

The AfCFTA becomes operational on 1st June 2020 and is expected to create the world’s largest free trade Zone with over 1 billion consumers, a potential $3 trillion economy and zero tariffs on goods traded across countries.

“To start with, there is still work to be done to sensitise the private sector on both the opportunities and threats that the agreement comes with and work to develop a competitive AfCFTA strategy,” he said.

The Country Director said IIA was investing to adequately prepare its SMEs to harness the market opportunities the agreement would provide.

Mr. Nartey said IIA would help more SMEs to become AfCTA ready by leveraging on ICT to accelerate regional value chain integration and facilitate trade.

He said IIA has a solid digital infrastructure in the form of their propriety APP online marketplace, which was home to 50 buyers and 5, 500 supplier across West, East and Southern

Africa. “Currently, even each IIA market operating their platform independently, we have successfully integrated 100’s of SMEs into the supply chains of Multinational companies and large corporations across Africa and enabled $ 150 million of business opportunities,” he said.

On scaling-up SME’s “home grown” solutions, he said they have a transformative project called Home Grown Buyers, which would scale up 50 plus high potential suppliers to become buyers, so they in turn create procurement and sub-contracting opportunities for other smaller local suppliers.

This suppliers with a combined local procurement budget of $ 50 million will explore Joint Ventures and partnerships to achieve better economies of scale and access newer markets.

He said IIA is also working with the Chartered Institute of Procurement and Supply, CIMG and a Pan-African network of mentors and financiers to make this happen.

Sao Tome and Principe and IFAD partner to improve nutrition and incomes

By Kwasi Anku

The International Fund for Agricultural Development of the United Nations (IFAD) has announced support for a new project to increase incomes, improve food and nutrition security.

The support is to build the resilience of at least 34,800 rural farmers in Sao Tome and Principe, an island country highly affected by climate change.

A statement issued to Business24 by David Florentin Paqui, IFAD Communications Division, said rising sea levels and climate disturbances put the poor rural people of the country at risk, impacting its agriculture and fisheries.

It said micronutrient deficiency rates in Sao Tome and Principe were also alarming, with 96 per cent of preschool children and 18 per cent of girls and pregnant women suffering from vitamin A deficiencies. The malnutrition rate for children under five is more than 17 per cent.

The statement said to address these issues, the financing agreement for the Commercialization, Agricultural Production Nutrition Project (COMPRAN) was signed by Donal Brown, Associate Vice-President of IFAD, Programme Management Department and Osvaldo Tavares dos Santos Vaz, Minister of Finance of the Democratic Republic of Sao Tome and Principe.

With 69 per cent of the young people in Sao Tome and Principe unemployed, this €19.2 million programme will target young people, aiming for at least 50 per cent.

It said it would contribute to livelihood development, improved nutrition and resilience, all of which are critical areas for the country to achieve food

security, as well as meeting several Sustainable Development Goals, including no poverty, zero hunger, gender equality and climate action (SDGs 1, 2, 5 and 13).

Funding includes an €0.9 million loan and €3.8 million grant from IFAD. In addition, the Government of Sao Tome and Principe is

providing €0.4 million, with a further €0.5 million contributed by beneficiaries themselves and significant co-financing from other development partners.

“COMPRAN is an innovative project that will also strengthen capacities of key rural public and private institutions in the country to catalyse and well manage investments and

strengthen public-private and producer partnerships, at both central and decentralized levels. This will ensure the continuity and the sustainability of the gains of the former Smallholder Commercial Agriculture Project that registered huge achievements and impact on the livelihoods of rural populations through increased incomes,”

said Emime Ndihokubwayo, Country Director for Sao Tome and Principe.

The project will promote the economic inclusion of smallscale producers in value chains commodities such as crop, livestock and fishing. Innovative climate change mitigation and adaption measures will be introduced, particularly in irrigation and agroforestry.

It will also invest in post-harvest infrastructure and technologies to minimise food loss.

The statement said COMPRAN would build the capacity of small-scale farmers in production and processing so that they become more competitive.

“It will also increase their access to markets by linking them to different actors in the target value chains,” it said.

It said appropriate rural infrastructure would be put in place to support market-oriented production, and to enable efficient delivery of surplus production from small farms to markets, allowing farm families to sell more and improve their livelihoods.

The project will be implemented nationwide and will fund 35 business plans of cooperatives, promote 1,500 microprojects for food and nutritional security and income-generating activities, and support 700 youth microenterprises initiatives.

Other important activities include preparing or updating the land registry to identify abandoned lands so that they can be distributed to women, young people, or persons with disabilities who can be included in productive agricultural activities.

Since 1985, IFAD has invested more than US$31.7 million in seven rural development programmes and projects in Sao Tome and Principe worth a total of almost $70 million. These interventions have directly benefited 36,520 rural families.

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Feature

The Case for Global Health Diplomacy

By Junaid Nabi

The coronavirus crisis is a reminder of why governments must regard health as an essential component of foreign policy. Much of the current panic could have been prevented had political leaders pursued global health diplomacy instead of adopting impulsive measures such as travel bans.

One of the hallmarks of an effective foreign policy is that it runs in the background, neither loud nor especially visible. Governments must urgently adopt such an approach to stem the growing global panic caused by the coronavirus outbreak, which has now killed more than 1,300 people and infected in excess of 63,000.

Although almost all the deaths and confirmed cases to date have been in mainland China, the virus has spread to more than two dozen countries. The World Health Organization recently declared the outbreak to be a global health emergency.

For the time being, panic reigns. Global technology firms such as Google, Apple, Facebook, and Tesla have temporarily suspended their operations in China and asked their employees to work from home. Many foreign airlines, carmakers, retail and entertainment chains, and financial institutions have taken similar measures. And in the United States, Asian-Americans and students from Asian countries are facing a surge in xenophobic comments about their food, culture, and way of

life.In addition, many countries have joined the US in temporarily refusing entry to foreign nationals who have recently traveled within China. However, prominent global health experts argue that restrictive policies such as these, which usually are reserved for life-threatening situations, are unlikely to stop the spread of what the WHO has now christened COVID-19.

Instead, such measures have fueled panic among investors.

Most Chinese stocks fell sharply when trading resumed after the country’s New Year holiday, with some market indices suffering their biggest single-day declines in more than a decade.

Because China is the world’s second-largest economy, these financial losses will have a global impact. Furthermore, COVID19’s disruptive impact on labor markets, travel, and factory production will hurt the operations of global firms that depend on China’s manufacturing strength and supply chains.

The crisis is a reminder of why governments must regard health as an essential component of foreign policy. Indeed, much of the current panic could have been prevented had political leaders pursued global health diplomacy.

Governments have previously recognized the role of health as a crucial foreign-policy tool, including in the 2007 Oslo Ministerial Declaration by the foreign ministers of Brazil, France, Indonesia, Norway, Senegal, South Africa, and Thailand. But applying this idea has become increasingly difficult because

of the global rise of far-right nationalism, which presents diplomats with the challenge of maintaining amicable relations with allies demonized by their own governments.

Impulsive foreign policies aimed at tackling COVID-19 – such as travel bans and the suspension of economic activities – are not only unsupported by scientific evidence, but also are likely to prove harmful in the long run. By contrast, soft power, or a country’s ability to shape the preferences of others through persuasion and diplomacy, often is much more effective. In fact, three of the strategies likely to prove most effective in tackling COVID-19 (and future epidemics) will require governments and other actors to cooperate more closely, establish deep mutual trust, and develop platforms that promote the free dissemination of evidence-based scientific data.

For starters, health should be considered a global public good.

Countries with robust systems for collecting and disseminating scientific research should establish collaborative networks through which low- and middle-income countries can report and publish information on infectious outbreaks. Fortunately, leading international medical journals, including The Lancet and The New England Journal of Medicine, are collecting – and rapidly publishing – evidence-based, peer-reviewed data on COVID-19’s clinical and public-health characteristics.

This is critical, because the new coronavirus has not been the

Junaid Nabi

only epidemic to spread globally in recent weeks; there also is an epidemic of misinformation online, especially on social media platforms.

Second, countries where potential outbreaks originate should not be made to feel stigmatized. Governments need to create formal, confidential channels through which officials can freely share information on emerging health risks or potential outbreaks. COVID-19 has spread so widely in part because the Chinese government feared political embarrassment and initially suppressed information when doctors in Wuhan raised the alarm over infectious cases. Although countries have varying mechanisms for informing the public about health-related risks, more coordinated global health diplomacy could have mitigated the epidemic’s impact.

Third, governments should invest in building data-manage-

ment systems that can track the spread of epidemics, preferably in real time. These could resemble the innovative dashboard map created by Johns Hopkins University’s Center for Systems Science and Engineering to track the COVID-19 outbreak.

This map compiles data from the WHO, the US Centers for Disease Control and Prevention and its European and Chinese counterparts, and China’s National Health Commission – all in real time. Such data is vital in helping governments to make informed decisions about how best to tackle the virus.

In a globalized world, we cannot afford to ignore health risks arising in other countries.

Rich-country governments in particular should therefore not regard increased globalization and interdependence as purely economic phenomena that enable firms to establish manufacturing and supply-chain operations in middle- and lower-income economies. Privileged countries also have a responsibility to establish support mechanisms that help others address emerging health threats.

Faced with a global epidemic such as COVID-19, political leaders should be guided by scientific evidence and compassion, not anecdotes and xenophobia.

Enlightened global health diplomacy could save countless lives.

Junaid Nabi is a public health researcher at Brigham and Women’s Hospital and Harvard Medical School, Boston. © Project Syndicate 1995–2020

Trump’s “Currency Manipulation” Con

By Anne O. Krueger

The long-awaited “phase one” deal between the United States and China has not ended US trade warfare. Instead, President Donald Trump’s administration has devised yet another tool with which to tilt the playing field against foreign competitors, all but ensuring that damaging and unnecessary trade conflicts will continue.

Would you believe the following story if you heard it? Imagine a small, rural town with one general store that sells to, and buys from, the farmers living in the surrounding area. Owing to their large families, the farmers have been running up a tab at the store, and they now owe the store a great deal of money.

So, they organize a protest to demand that the store raise its prices on seed, fertilizer, and the like, while reducing the price it will pay for the farmers’ grains.

Obviously, the scenario is absurd. Paying even higher prices for agricultural supplies and receiving less for what they produce will not help the farmers pay off their tab. Indeed, either change would probably result in higher profits for the store, and greater losses for the farmers and their families.

In this nonsensical parable, US President Donald Trump’s administration represents the

farmers. By accusing China (or any other country) of “currency manipulation,” the administration is effectively demanding that the Chinese appreciate their currency – that is, make each renminbi cost more in dollars.

To be sure, many politicians over the years have argued that China and other developing and emerging economies “manipulate their currency” to gain a competitive edge. By reducing the purchasing power of their own currencies, they can make their exports cost less to foreign buyers, while rendering imports more expensive to domestic buyers.

To account for such concerns, the United States has a law mandating that the Department of the Treasury prepare a biannual report for Congress specifying whether any currencies are being “manipulated.” If the Treasury does so specify, the administration is then expected to carry on “talks” with the accused country. But, even then, the law mandates no penalties.

Congress has established three criteria to determine whether manipulation has occurred. The offending country must have a current-account surplus above 3% of GDP; it must have intervened in the foreign-exchange market to make its currency cheaper; and it must have a bilateral surplus with the US in excess of $20 billion.

Anne O. Krueger

In August 2019, China’s current-account surplus fell below 3% of GDP, and the Chinese government had previously been intervening not to devalue the renminbi but rather to prevent further depreciation following Trump’s threats of additional tariffs. In the event, the US declared China a currency manipulator anyway, only to remove the designation as a part of the “phase one” trade deal agreed in January.

But, in the meantime, the Trump administration has discovered a new tool with which to bludgeon foreign competitors. The Department of Commerce this month issued a rule that allows for additional levies on imports from countries deemed to be currency manipulators, with the percentage increase in the tariff (in addition to the statutory tariff and the anti-dumping or countervailing duty margin) being equal to the estimated percentage by which

the currency is deemed undervalued. Worse, under the new rule, there is no legal process that the department must follow when determining whether “manipulation” has occurred.

Accordingly, an American company that believes it is losing sales to a foreign company may now appeal to the Commerce Department (and the International Trade Administration) for special treatment. Even if a (profitable) German exporter charges the same prices for the goods it sells domestically as it does for the goods it sells in the US, an American firm can demand additional levies by citing “currency manipulation.” And if no US firm acts, the Commerce Department can simply initiate such appeals on its own.

The US has long had one of the world’s strongest economies, owing in no small part to its respect for the rule of law and its efforts to maintain a level playing field for competition – both foreign and domestic – within the US market. Given this tradition, it is puzzling that so many American politicians and businessmen are now terrified of other countries’ economic strengths.

True, the US has also long championed extraordinarily loose criteria to justify anti-dumping measures and countervailing duties, and it has secured rules and procedures for determining such of-

fenses within the World Trade Organization. But a finding of “currency manipulation” has never been among the relevant criteria. Most likely, the Trump administration’s unilateral decision to add currency manipulation to the list will be contested in court and at the WTO. More broadly, the Trump administration’s currency politics will be felt everywhere. Trump has complained that both Argentina and Brazil are manipulating their currencies, even though those countries’ exchange-rate depreciation is obviously a response to high inflation. The International Monetary Fund and others have recommended that both pursue devaluation in order to restore macroeconomic balance.

Meanwhile, Trump continues to call on the US Federal Reserve to lower interest rates and ease its monetary policy so that the dollar will depreciate. Apparently, the US is free to manipulate its currency – just so long as no one else does.

Anne O. Krueger, a former World Bank chief economist and former first deputy managing director of the International Monetary Fund, is Senior Research Professor of International Economics at the School of Advanced International Studies, Johns Hopkins University, and Senior Fellow at the Center for International Development, Stanford University.

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Education

How SOS Children’s Villages and StarTimes are empowering African youth Africa is the youngest continent in the world with 200 million people aged between 15 and 24 years. This is an opportunity for Africa but also a challenge.

On the continent, youth represents 37% of the working-age population, but 60% of the total number of unemployed.

And this number is even higher among youth from underprivileged family background.

This is why SOS Children’s Villages Eastern and Southern Africa (SOSCV) and leading digital television operator StarTimes joined hands in 2018 to support youth empowerment.

SOS Children’s Villages is a non-profit organization that has been supporting children, young people and families since 1949 and are present in 26 countries in East & Southern Africa.

Every year, they take care of thousands of children across the continent who have lost parental care or who are at risk of losing parental care.

In most countries, these young people are facing social and economic exclusion and face challenges when entering the professional world. In March 2017 SOSCV launched the YouthCan! initiative through which partners such as StarTimes provide youth with training and exposure to the professional world so they can transition successfully into professional life and lead independent lives.

The media group StarTimes has been growing very fast these past years, creating thousands of jobs on the continent. Luis Lu, StarTimes Vice-President in charge of Human Resources, explains that “StarTimes Group is committed towards empowering youth. They are the next generation of African leaders and they are eager to acquire knowledge and skills, but above all they are eager for an opportunity to show what they can

do, that they can contribute. At StarTimes, through this partnership with SOS Children’s Villages Eastern & Southern Africa, we are humbly trying to give some of them this opportunity.”

Dozens of young people from SOS Children’s Villages East & Southern Africa programs have already interned at StarTimes in Africa.

In Tanzania, 19 year-old Rukia Zakaria Dahwa undertook a five months training as a Customer Care Agent. She explains that “it was my first internship” and “I learnt about good communication skills between workers and customers, to be active and work hard to meet targets. Although I am still pursuing my studies, I am sure the skills I got through the internship will help me find a job in the future.”

In Nigeria, Tina Odiah, 26, was hired as a full time staff after getting what was her first internship in a company. “Before I didn’t know how to use many work tools like Excel. But when I started I realized it was a very important tool and I was trained on how to use it. Today I’m better at it and I also learnt how to behave in a formal environment. Later, there was an open-

ing at the company I am sure I was selected because of the internship I did - that made me a better person.”

In Rwanda, Sonia Nishimwe, 24, explains that although her internship at StarTimes isn’t her first experience in a company, “it is the realest”. Working as a marketing assistant, “I am learning how to develop ideas that match with the working environment and also taking responsibilities of the work that am assigned to, learning how to deal with clients.”

In Burundi, Oscar Havyarimana learnt more than skills through his a two-month internship in StarTimes’ sales department, it gave him “the confidence to talk to people from different languages and background”. And that convinced him he could make his dream of creating his own business come true. “I am currently opening my own electronic shop.”

Since being launched, YouthCan! has established six global and more than 130 national corporate partnerships. During 2018, it reached out to 5,060 young people in 25 different countries, equally supporting boys and girls.

University of Ghana ranked 1,239 on January 2020 webometric rankings

University of Ghana has been ranked 1,239 on the January 2020 Webometric Rankings placing it ahead of universities in Ghana and West Africa.

The Ranking Web or Webometrics is the largest academic ranking of Higher Education Institutions. Since 2004, an independent, objective, free, open and scientific exercise is performed by the Cybermetrics Lab (Spanish National Research Council, CSIC), the largest public research body in Europe, for the purposes of providing reliable, multidimensional, updated and useful information about the performance of universities all over the world based on their web presence and impact.

The objectives of the Webometrics Ranking of the World’s Universities was to promote web publication, supporting open access initiatives and electronic access to scientific publications and other academic materials.

Indicators for the ranking are presence (public knowledge

shared), visibility (web contents impact), transparency or openness (top cited researchers) and excellence or scholar (top cited papers). University of Ghana has maintained its premier position in Ghana, with KNUST ranking at the 1,675th position. Besides the South African and Egyptian universities that have characteristically been ahead of UG, only University of Nairobi and Makerere forged ahead at the 1018th and 1082th position respectively.

The information below depicts University of Ghana’s World Rankings in previous years for reference. Webometrics (World Rank) 2005 - 5,794 2015 - 1,761 2017 - 1,657 2018 - 1,555. Management appreciates the contribution of members of the University community who are committed to sustaining the University’s reputation as the highly-ranked university in Ghana and the West African Sub-region

Bringing the world to Ghana, taking Ghana to the World Thanks to an increasing network of partners, students at Ashesi get to experience learning around the world, while the university also welcomes many others to experience living and learning in Ghana. Last year, about twelve Ashesi students participated in different programs with Swarthmore University, University of Connecticut, Malardalen University, IE Busines School, among others.

“With our study abroad programs, our hope is for students to stay connected with the rest of the world, broadening their network and improving their cross cultural and global competencies,” says Rosemary Kotei Buckman, Assistant Director of International Programs.

Exchange partners currently include University of Minnesota, Wheaton College, Arizona State University, College of Wooster, Connecticut College, Swarthmore University, Sciences Po, Macalester College, Malardalen University, and University of Dayton, and Coe College, among others.

In the following short essays, some students share their experiences from their exchange

Critical Study of Race and Ethnicity (CCSRE). I was involved in the stock pitch competition of the investment club, and performed with a group for the annual dance show called Eclipse.

I also had the opportunity to attend a conference for women of colour with other Conn students which was fully funded by the school.

My number one goal for study abroad was to explore, learn , network and have fun. I did exactly that and even more. I visited 7 states in total, learnt about new cultures and made lots of new friends.

Amanda Ivers, from Malardalen University to Ashesi University programs studying both here at Ashesi and abroad in the year 2019.

Nana Ekua Egyirba Aggrey ’20, from Ashesi University to Connecticut College In my first year, I included study abroad as one of my bucket list entries for my time in Ashesi. I just couldn’t imagine doing four years in Ashesi and not taking advantage of this opportunity. In Connecticut Col-

lege, I took 3 economics classes; Financial Speculation, Game Theory and Economics of the Family which counted towards my degree at Ashesi. But I also took advantage of the opportunity to explore architecture, as well as ice skating!

Conn also gave me the opportunity to engage in a lot of other learning activity, including the chance to work with the Office of Religious and Spiritual Programs and the Centre for the

I am very happy about the opportunity to come here for one semester. My favorite time of the day was to sit at the cafeteria to watch the amazing sunsets every night. I have learned and experienced so much and made memories that I will always think back of with joy.

The people at Ashesi have been very friendly and helpful. The staff in the cafeterias remember my name and always greet

me nicely. Going through some transition challenges have made me more open and receptive to change. I have learned to appreciate things that I take for granted at home in Sweden, but at the same time have realized that I can do well without them.

Choosing to come here to as an exchange student is one of the best decisions I’ve made, and I would recommend that students looking to study abroad do same. I hope our two universities will continue to collaborate, and that more students from Ashesi will come to Sweden. If they do, I would gladly want to meet them and support them during their time here!

Wilhelmina Donkoh ’21, from Ashesi University to Swarthmore College For the first semester of 2019/20 academic year, I studied at Swarthmore College, and also registered for two finance courses at the University of Pennsylvania, two of the leading educational institutions in the United States of America.

External Relations Office, Ashesi University

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Feature

The White Swans of 2020

By Nouriel Roubini

Nouriel Roubini

Financial markets remain blissfully in denial of the many predictable global crises that could come to a head this year, particularly in the months before the US presidential election. In addition to the increasingly obvious risks associated with climate change, at least four countries want to destabilize the US from within.

In my 2010 book, Crisis Economics, I defined financial crises not as the “black swan” events that Nassim Nicholas Taleb described in his eponymous bestseller, but as “white swans.”

According to Taleb, black swans are events that emerge unpredictably, like a tornado, from a fat-tailed statistical distribution.

But I argued that financial crises, at least, are more like hurricanes: they are the predictable result of built-up economic and financial vulnerabilities and policy mistakes.

There are times when we should expect the system to reach a tipping point – the “Minsky Moment” – when a boom and a bubble turn into a crash and a bust. Such events are not about the “unknown unknowns,” but rather the “known unknowns.”

Beyond the usual economic and policy risks that most financial analysts worry about, a number of potentially seismic white swans are visible on the horizon this year. Any of them could trigger severe economic, financial, political, and geopolitical disturbances unlike anything since the 2008 crisis.

For starters, the United States is locked in an escalating strategic rivalry with at least four implicitly aligned revisionist powers: China, Russia, Iran, and North Korea. These countries all have an interest in challenging the US-led global order, and 2020 could be a critical year for them, owing to the US presidential election and the potential change in US global policies that could follow.

Under President Donald Trump, the US is trying to contain or even trigger regime change in these four countries through economic sanctions and other means. Similarly, the four revisionists want to undercut American hard and soft power abroad by destabilizing the US from within through asymmetric warfare. If the US election descends into partisan rancor, chaos, disputed vote tallies, and accusations of “rigged” elections, so much the better for America’s rivals. A breakdown of the US political system would weaken American power abroad.

Moreover, some countries have a particular interest in removing Trump. The acute threat that he poses to the Iranian regime gives it every reason to escalate the conflict with the US in the coming months – even if it means risking a fullscale war – on the chance that the ensuing spike in oil prices would crash the US stock market, trigger a recession, and sink Trump’s re-election prospects.

Yes, the consensus view is that the targeted killing of Qassem Suleimani has deterred Iran, but that argument misunderstands the regime’s perverse incentives. War between US and Iran is likely this year; the current calm is the one before the proverbial storm.

As for US-China relations, the recent “phase one” deal is a temporary Band-Aid. The bilateral cold war over technology, data, investment, currency, and finance is already escalating sharply. The COVID-19 outbreak has reinforced the position of those in the US arguing for containment, and lent further momentum to the broader trend of Sino-American “decoupling.”

More immediately, the epidemic is likely to be more severe than currently expected, and the disruption to the Chinese economy will have spillover effects on global supply chains – including pharma inputs, of which China is a critical supplier – and business confidence, all of which will likely be more severe than financial markets’ current complacency suggests.

Although the Sino-American cold war is by definition a low-intensity conflict, a sharp escalation is likely this year. To some Chinese leaders, it cannot be a coincidence that their country is simultaneously experiencing a massive swine flu outbreak, a severe bird flu, a coronavirus epidemic, political unrest in Hong Kong, the re-election of Taiwan’s pro-independence president, and stepped-up US naval operations in the East and South China Seas. Regardless of whether China has only itself to blame for some of these crises, the view in Beijing is veering toward the conspiratorial.

But open aggression is not really an option at this point, given the asymmetry of conventional power. China’s immediate response to US containment efforts will likely take the form of cyberwarfare. There are several obvious targets. Chinese hackers (and their Russian, North Korean, and Iranian counterparts) could interfere in the US election by flooding Americans with misinformation and deep fakes. With the US electorate already so polarized, it is not difficult to imagine armed partisans taking to the streets to challenge the results, leading to serious violence and chaos.

Revisionist powers could also attack the US and Western financial systems – including the Society for Worldwide Interbank Financial Telecommunication (SWIFT) platform. Already, European Central Bank President Christine Lagarde has warned that a cyberattack on European financial markets could cost $645 billion. And security officials have expressed similar concerns about the US, where an even wider range of

telecommunication infrastructure is potentially vulnerable.

By next year, the US-China conflict could have escalated from a cold war to a near-hot one. A Chinese regime and economy severely damaged by the COVID-19 crisis and facing restless masses will need an external scapegoat, and will likely set its sights on Taiwan, Hong Kong, Vietnam, and US naval positions in the East and South China Seas; confrontation could creep into escalating military accidents. It could also pursue the financial “nuclear option” of dumping its holdings of US Treasury bonds if escalation does take place. Because US assets comprise such a large share of China’s (and, to a lesser extent, Russia’s) foreign reserves, the Chinese are increasingly worried that such assets could be frozen through US sanctions (like those already used against Iran and North Korea).

Of course, dumping US Treasuries would impede China’s economic growth if dollar assets were sold and converted back into renminbi (which would appreciate). But China could diversify its reserves by converting them into another liquid asset that is less vulnerable to US primary or secondary sanctions, namely gold. Indeed, both China and Russia have been stockpiling gold reserves (overtly and covertly), which explains the 30% spike in gold prices since early 2019.

In a sell-off scenario, the capital gains on gold would compensate for any loss incurred from dumping US Treasuries, whose yields would spike as their market price and value fell. So far,

China and Russia’s shift into gold has occurred slowly, leaving Treasury yields unaffected.

But if this diversification strategy accelerates, as is likely, it could trigger a shock in the US Treasuries market, possibly leading to a sharp economic slowdown in the US. The US, of course, will not sit idly by while coming under asymmetric attack. It has already been increasing the pressure on these countries with sanctions and other forms of trade and financial warfare, not to mention its own world-beating cyberwarfare capabilities.

US cyberattacks against the four rivals will continue to intensify this year, raising the risk of the first-ever cyber world war and massive economic, financial, and political disorder.

Looking beyond the risk of severe geopolitical escalations in 2020, there are additional medium-term risks associated with climate change, which could trigger costly environmental disasters. Climate change is not just a lumbering giant that will cause economic and financial havoc decades from now. It is a threat in the here and now, as demonstrated by the growing frequency and severity of extreme weather events.

In addition to climate change, there is evidence that separate, deeper seismic events are underway, leading to rapid global movements in magnetic polarity and accelerating ocean currents.. Any one of these developments could augur an environmental white swan event, as could climatic “tipping points” such as the collapse of major ice sheets in Antarctica or Green-

land in the next few years. We already know that underwater volcanic activity is increasing; what if that trend translates into rapid marine acidification and the depletion of global fish stocks upon which billions of people rely?

As of early 2020, this is where we stand: the US and Iran have already had a military confrontation that will likely soon escalate; China is in the grip of a viral outbreak that could become a global pandemic; cyberwarfare is ongoing; major holders of US Treasuries are pursuing diversification strategies; the Democratic presidential primary is exposing rifts in the opposition to Trump and already casting doubt on vote-counting processes; rivalries between the US and four revisionist powers are escalating; and the real-world costs of climate change and other environmental trends are mounting.

This list is hardly exhaustive, but it points to what one can reasonably expect for 2020.

Financial markets, meanwhile, remain blissfully in denial of the risks, convinced that a calm if not happy year awaits major economies and global markets

Nouriel Roubini, Professor of Economics at New York University’s Stern School of Business and Chairman of Roubini Macro Associates, was Senior Economist for International Affairs in the White House’s Council of Economic Advisers during the Clinton Administration. He has worked for the International Monetary Fund, the US Federal Reserve, and the World Bank. NourielRoubini.com.

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Maritime

Include us in joint inspections at Tema Port-- Port’s Veterinary Regulatory Unit The Head of Veterinary Regulatory Unit at the Port of Tema, Dr. Stephen Bonnah, has lamented that his outfit has for some time been eliminated from inspection activities at the country’s port, hence, reducing the desired level of influence and control the Veterinary unit has on animal and animal products making it through the ports into the country.

Considering the fact that the deadly coronavirus is a zoonotic disease, meaning its mode of transmission started from animal to animal it has become imperative how animals or animal products are inspected at the country’s ports and borders before being allowed onto the domestic market public consumption.

Speaking on Eye on Port’s live interactive panel discussion on the topic: Coronavirus, A Global Threat to Trade and Shipping: Impact, Interventions and Remedies, the Head of Veterinary Regulatory Unit called for urgent action for his outfit to be included in the joint inspection management system to ensure an effective monitoring of animal and animal products, which have a high risk of serving as carriers of diseases into the country.

“At the moment, at the Tema

Port, veterinary is not in charge of products of animal origin.

We not being part of the Joint Inspection Management Information System…and you are dealing with a particular container, how do we know,” he bemoaned.

He said the Food and Drugs Authority has been put in charge of animal and animal products that hitherto his outfit was inspecting at the port.

According to Dr. Stephen Bonnah, the Veterinary Regulatory Unit has the necessary facil-

ity at its disposal to conduct all procedures involved in the screening and examination of animal and animal products so that such diseases that are transmitted through animals are prevented from public consumption.

“I’d love to find time and show you our lab. It is one of the sophisticated labs around, and some of them are referrals for West Africa,” he said.

He said, the Veterinary Regulatory Unit currently issues import permits to importers

of animal and animal products to protect the consumer and prevent the transmission of trans-border animal diseases.

“Before the import permit is issued, we do a lot of risk-assessment. We do not easily give out the import permit. We have to know the disease situation of the place you are getting your animal products from. And we can equally block these permits when alarms are raised,” he added.

But according to the head of the Veterinary Regulatory Unit,

this is not enough, as his outfit needs to engage in physical examination of items to be able to fully fulfil its mandate.

“The OIE, the World Organisation for Animal Health, section 5 of the law declares the authenticity of veterinary taking over meat inspection and not only live animals,” he said.

He revealed that dog feed is commonly imported from China, but he doesn’t even know the statistics of those imports, because those imports do not go through his office.

Dr. Stephen Bonnah continued by saying, “the reason why we do not come out to say these things, is that because we are part of national security, we do not want to cause unnecessary fear and panic.”

The Greater Accra Regional Chairman of the Ghana Union of Traders Association (GUTA), David Kwadwo Amoateng, who was also on the program, called on government to increase vigilance at the country’s borders because according to him, finding out the level of inactivity by the veterinary services during inspection activities at the port is a cause for major worry.

“I think this is dangerous. It is sad to note that we can import animal products, and among those who will do inspection, vets are not part of them.”

Maersk Tema boarded by pirates off Guinea, crew safe Post-Panamax container vessel Maersk Tema was boarded by pirates while underway off the coast of West Africa on Friday, February 14.

It is believed that two men boarded the 5,466 TEU boxship some 90 nautical miles northwest of Sao Tome, as the vessel was sailing from Pointe Noir to Lagos, according to a report from Dryad Global.

Dryad added that two skiffs were seen in the vicinity of the attack. It was further reported that the crew members managed to reach the citadel to hide from pirates.

The container vessel Maersk Tema, built in 2015, is owned and operated by the charter company Peter Döhle Schiffart and Bernhard Schulte ship Management.

Danish shipping line Maersk, the charterer of the containership, confirmed the attack on social media accounts saying that the vessel was attacked by pirates when located 200 nautical miles west off Guinea.

In an update on the following day, Maersk said the ship and its crew were safe and free of pirates.

“It is with relief that we have received confirmation, that the vessel, which was attacked by pirates on February is now cleared and all crew are safe and accounted for. We will continue to offer our full support to Peter Döhle Schiffart and Bernhard Schulte ship Management,” Maersk released on Twitter.

The company did not disclose further details on the incident.

This latest boarding is the 5th

incident to occur within the Nigeria – Sao Tome Joint Development Zone since November 2019.

After a brief hiatus, pirates returned to an area that saw considerable success within 2019, Dryad explained.

Namely, last year saw a rampant rise in piracy attacks in the Gulf of Guinea, combined with an alarming increase in crew kidnappings.

The number of crew kidnapped in the Gulf of Guinea more than doubled from 78 in 2018 to 121 in 2019. The region accounted for 64 incidents including all four vessel hijackings that occurred in 2019, as well as 10 out of 11 vessels that reported coming under fire.

“Pirates operating within this area are assessed to be seeking to exploit the relative lack of established security presence in the waters beyond the Nigerian EEZ,” Dryad added.

“Pirates have shown a capability and intent to attack large vessels underway indicating a high degree of confidence and capability. It is assessed as highly likely that pirates operating within this area have originated from within Nigeria and are likely to do so with support from a larger vessel.” worldmaritimenews.com

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Feature

The monetarist fantasy is over

By Robert Skidelsky

The forced resignation of the United Kingdom’s Chancellor of the Exchequer, Sajid Javid, is the latest sign that macroeconomic policy is being upended, and not only in the UK. In addition to completing the ritual burial of the austerity policies pursued

by UK governments since 2010, Javid’s departure on February 13 has broader significance.

Prime Minister Boris Johnson is determined to overcome Treasury resistance to his vast spending ambitions. The last time a UK prime minister tried to open the government spending taps to such an extent was in 1964, when Labour’s Harold Wilson established the Department of Economic Affairs to counter Treasury hostility to public investment. Following the 1966 sterling crisis, however, the hawk-eyed Treasury re-established control, and the DEA was soon abolished. The Treasury, the oldest and most cynical department of government, knows how to bide its time.

But Johnson’s latest coup also is indicative of a global shift from monetary to fiscal policy.

After World War II, stabilization policy, the brainchild of John Maynard Keynes, started off as strongly fiscal. The government’s budget, the argument went, should be used to balance an unstable economy at full em-

ployment.

In the 1970s, however, came the monetarist counter-revolution, led by Milton Friedman.

The only stabilizing that a capitalist market economy needed, Friedman said, was of the price level. Provided that inflation was controlled by independent central banks and government budgets were kept “balanced,” economies would normally be stable at their “natural rate of unemployment.” From the 1980s until the 2008 global financial crisis, macroeconomic policy was conducted in Friedman’s shadow.

But now the pendulum has swung back. The reason is clear enough: monetary policy failed to anticipate, and therefore prevent, the Great Recession of 2008-09, and failed to bring about a full recovery from it.

In many countries, including the UK, average real incomes are still lower than they were 12 years ago.

Disenchantment with monetary policy is running in parallel with a much more positive reading of US President Barack Obama’s 2008-09 fiscal boost, and a much more negative view of Europe’s post-slump fiscal austerity programs. A notable turning point was the 2013 rehabilitation of fiscal multipliers by the International Monetary Fund’s then-chief economist Olivier Blanchard and his colleague Daniel Leigh.

As Blanchard recently put it, fis-

cal policy “has been underused as a cyclical tool.” Now, even prominent central bankers are calling for help from fiscal policy.

The theoretical case against relying on monetary policy for stabilization goes back to Keynes.

“If, however, we are tempted to assert that money is the drink which stimulates the system to activity,” he wrote, “we must remind ourselves that there may be several slips between the cup and the lip.” More prosaically, the monetary pump is too leaky. Too much money ends up in the financial system, and not enough in the real economy.

Mark Carney, the outgoing governor of the Bank of England, recently admitted as much, saying that commercial banks had been “useless” for the real economy after the slump started, despite having had huge amounts of money thrown at them by central banks. In fact, orthodox theory still struggles to explain why trillions of dollars’ worth of quantitative easing, or QE, remains stuck in assets offering a negative real rate of interest.1

Kenneth Rogoff of Harvard recently argued that fiscal stabilization policy “is far too politicized to substitute consistently for modern independent technocratic central banks.” But instead of considering how this defect might be overcome, Rogoff sees no alternative to continuing with the prevailing monetary-policy regime – despite the overwhelming evidence that central banks are unable to play their assigned role. At least fiscal policy might in principle be up to the task of economic stabilization; there is no chance that central banks will be.

This is due to a technical reason, the validity of which was established both before and after the collapse of 2008. Simply put, central banks cannot control the aggregate level of spending in the economy, which means that they cannot control the price level and the aggregate level of output and employment.

A less skeptical observer than Rogoff would have looked more closely at proposals to strengthen automatic fiscal stabilizers, rather than dismissing them on the grounds that they will have (bad) “incentive effects” and that policymakers will override them on occasion. For example, a fair observer would at least be open to the idea of a public-sector job guarantee of the sort envisaged by the 1978 Humphrey-Hawkins Act in the US, which authorized the feder-

al government to create “reservoirs of public employment” to balance fluctuations in private spending.

Those reservoirs would automatically be depleted and refilled as the economy waned and waxed, thus creating an automatic stabilizer. The Humphrey-Hawkins Act, had it been implemented, would have greatly reduced politicians’ discretion over counter-cyclical policy, while creating a much more powerful stabilizer than the social-security systems on which governments now rely.

To be sure, both the design and implementation of such a job guarantee would give rise to problems. But for both political and economic reasons, one should try to tackle them rather than concluding, as Rogoff does, that, “with monetary policy hampered and fiscal policy the main game in town, we should expect more volatile business cycles.” We have the intelligence to do better than that.

Robert Skidelsky, a member of the British House of Lords, is Professor Emeritus of Political Economy at Warwick University. The author of a three-volume biography of John Maynard Keynes, he began his political career in the Labour party, became the Conservative Party’s spokesman for Treasury affairs in the House of Lords, and was eventually forced out of the Conservative Party for his opposition to NATO’s intervention in Kosovo in 1999. © Project Syndicate 1995–2020

Adapting to a Fast-Forward World

By Mohamed A. El-Erian

Firms and governments must increasingly internalize the possibility – indeed, I would argue, the overwhelming probability – of an acceleration of four secular developments that influence what business and political leaders do and how they do it.

Decision-makers should think of these trends as waves, which, especially if they occur simultaneously, could feel like a tsunami for those who fail to adapt their thinking and practices in a timely manner.

The first and most important trend is climate change, which has evolved from a relatively distant concern, on which there is ample time to take remedial action, to an imminent and increasingly urgent threat.

The mobilization of various concerned segments of society, owing partly to unusual climatic disruptions in recent years, has greatly increased the pressure on companies to act now.

BP’s recent announcement that it intends to achieve “net-zero” carbon emissions by 2050 – a notable promise by an energy company that operates in several highly challenging settings – is the latest example of business responding to such calls. It is only a matter of time until this pressure also prompts governments to take further steps, not only to encourage green activities, but also to tax and regulate those that cause pollution.

Second, privacy concerns have grown alongside technical innovations involving artificial intelli-

gence and big data.

Society is increasingly recognizing that recent technological advances allow not only for more efficient compilation of huge amounts of personal data, but also for using this information to monitor and alter behaviors. Broadly speaking, data are controlled and exploited either by governments (particularly in China), Big Tech companies (as in the United States), or more by users (as in Europe). But none of these three general operating paradigms seems to provide sufficient comfort and assurance to most people.

The third secular force involves disruptions to the multi-decade process of economic and financial globalization.

The initial trigger for this was the trade-policy pivot by US President Donald Trump’s administration – from cooperative conflict resolution to explicit confrontation, from multilateralism to bilateralism (or even unilateralism), and from rulebased to more ad hoc arrangements – aimed at creating a stillfree but fairer trading system.

But de-globalization has been turbocharged by the outbreak of the deadly COVID-19 virus, which has disrupted the flow of goods and services in China and beyond.

These challenges to globalization have opened the door for governments to weaponize economic tools to meet objectives that transcend economics, such as national security. This, in turn, is calling into question conventional wisdom about cross-border supply chains,

Mohamed A. El-Erian

just-in-time inventory management, and reliance on external demand to boost domestic growth. The final trend is demographic and concerns more than the aging of societies in Europe and Asia and this trend’s economic and political implications. It also goes beyond the growing realization that millennials’ starkly different expectations – regarding professional careers, personal engagement, political action, and the delivery of goods and services – will persist and deepen.

For starters, businesses need to be smarter about “anywhere, any place, any time” delivery.

Furthermore, job loyalty and tenure are decreasing, while expectations of comprehensive job fulfillment and engagement are rising. Self-mobilization for political and other causes, often with no visible leadership structure, has become a lot easier, yet often is less durable and raises tricky questions about what comes afterward. And all of this

is taking place amid the continued migration of an ever-expanding range of interactions from physical to virtual spaces.

Each of these secular forces will have an important impact on the effectiveness and success of companies and governments alike. And while being challenging overall, the four trends involve a diverse and geographically dispersed set of winners and losers. Executives and policymakers therefore must make timely revisions (including pre-emptive changes) not only to their business models and operational approaches, but also to both their tactical and strategic mindsets.

Getting this right will require cognitive diversity, openness to constructive criticism, repeated scenario analyses, and multi-disciplinary approaches.

Moreover, because each of the secular forces involves a considerable degree of uncertainty (with lots of known unknowns, and probably more than a few unknown unknowns behind them), a combination of resilience, optionality, and agility also is important. And this is even before one considers unanticipated periodic shocks such as the COVID-19 outbreak.

The challenges to sound decision-making and leadership in both business and government are not limited to mapping each of the four secular forces and the required adaptation. Decision-makers also must consider correlations and causalities between these trends that can make their total impact multi-

plicative rather than merely additive.

As a quick illustration, consider another aspect of demographic change: migration and the humanitarian challenges that often come with it. Climate change confronts countries with the possibility of waves of migratory human flows that they will find hard to accept and inhumane to refuse.

The combination of de-globalization and the misuse of AI and big data to infringe individual privacy is similarly troubling.

This could lead to questionable behavior by some governments and encourage malicious nonstate actors to disrupt societies and economies.

The world is in a period of accelerating change, the leading edge of which is the ever-growing list of developments that have gone from impossible to inevitable. Many (though by no means all) of the challenges facing business and political leaders may be broken down into four secular changes that can help anchor the timely formulation of required responses at the local, national, regional, and global levels. The faster that companies and governments recognize this, the likelier they will be to alter the balance of benefits, costs, and risks in their favor.

Mohamed A. El-Erian, Chief Economic Adviser at Allianz, was Chairman of US President Barack Obama’s Global Development Council. He is the author, most recently, of The Only Game in Town: Central Banks, Instability, and Avoiding the Next Collapse

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Real Estate/Feature

Henk Hamers joins Innoveo as Head of Sales EMEA, to expand business growth in Europe, Middle East & Africa Henk Hamers, Vice President, Head of Sales EMEA, is a highly accomplished international executive with an award-winning track record of leading sales teams, developing major business and multi-million-dollar sales accounts, including winning and closing deals in complex and competitive global markets for software and services.

Hamers joins Innoveo from SERRALA in Spain, where he operated successfully as Vice President, Head of Sales EMEA, managing a diverse team of Senior Account Executives and Directors across the EMEA region with double/triple digit growth results. Previously, as Senior Director of Strategic Business Development at Hewlett-Packard Enterprise EMEA, led multi-year growth across numerous accounts.

Amir Ghaffar, President and CEO of Innoveo, “Bringing in a seasoned executive such as Henk Hamers with a track record for winning and closing

sales deals is an essential component of Innoveo’s aggressive global expansion and growth strategy in 2020. We expect Innoveo to lead digital transformation for multiple industries in the EMEA region over the next 12-24 months.”

Innoveo is a Swiss company founded in 2007. Operating as a technology provider with a global footprint, we empower our customers to focus on innovation and market growth to accelerate business value while we provide the latest technology with our no-code platform Innoveo Skye®, in just weeks,

not years.

Innoveo Skye® is a no-code platform for both technical and non-technical users to configure and launch applications up to 10 times faster than traditional development.

With a rapidly expanding global footprint, Innoveo’s main offices are in Zurich, New York, Hong Kong, Budapest and Valencia. Innoveo is a trusted provider for some of the world’s largest insurance companies across 5 continents, with its platform, Innoveo Skye®, as well as in banking and real estate.

Adapting to a Fast-Forward World

By Mohamed A. El-Erian

Firms and governments must increasingly internalize the possibility – indeed, I would argue, the overwhelming probability – of an acceleration of four secular developments that influence what business and political leaders do and how they do it.

Decision-makers should think of these trends as waves, which, especially if they occur simultaneously, could feel like a tsunami for those who fail to adapt their thinking and practices in a timely manner.

The first and most important trend is climate change, which has evolved from a relatively distant concern, on which there is ample time to take remedial action, to an imminent and increasingly urgent threat.

The mobilization of various concerned segments of society, owing partly to unusual climatic disruptions in recent years, has greatly increased the pressure on companies to act now.

BP’s recent announcement that it intends to achieve “net-zero” carbon emissions by 2050 – a notable promise by an energy company that operates in several highly challenging settings – is the latest example of business responding to such calls. It is only a matter of time until this pressure also prompts governments to take further steps, not only to encourage green activities, but also to tax and regulate those that cause pollution.

Second, privacy concerns have grown alongside technical innovations involving artificial intelligence and big data.

Society is increasingly recognizing that recent technological advances allow not only for more efficient compilation of huge amounts of personal data, but also for using this information to monitor and alter behav-

iors. Broadly speaking, data are controlled and exploited either by governments (particularly in China), Big Tech companies (as in the United States), or more by users (as in Europe). But none of these three general operating paradigms seems to provide sufficient comfort and assurance to most people.

The third secular force involves disruptions to the multi-decade process of economic and financial globalization.

The initial trigger for this was the trade-policy pivot by US President Donald Trump’s administration – from cooperative conflict resolution to explicit confrontation, from multilateralism to bilateralism (or even unilateralism), and from rulebased to more ad hoc arrangements – aimed at creating a stillfree but fairer trading system.

But de-globalization has been turbocharged by the outbreak of the deadly COVID-19 virus, which has disrupted the flow of

goods and services in China and beyond.

These challenges to globalization have opened the door for governments to weaponize economic tools to meet objectives that transcend economics, such as national security. This, in turn, is calling into question conventional wisdom about cross-border supply chains, just-in-time inventory management, and reliance on external demand to boost domestic growth.

The final trend is demographic and concerns more than the aging of societies in Europe and Asia and this trend’s economic and political implications. It also goes beyond the growing realization that millennials’ starkly different expectations – regarding professional careers, personal engagement, political action, and the delivery of goods and services – will persist and deepen.

For starters, businesses need

to be smarter about “anywhere, any place, any time” delivery.

Furthermore, job loyalty and tenure are decreasing, while expectations of comprehensive job fulfillment and engagement are rising. Self-mobilization for political and other causes, often with no visible leadership structure, has become a lot easier, yet often is less durable and raises tricky questions about what comes afterward. And all of this is taking place amid the continued migration of an ever-expanding range of interactions from physical to virtual spaces.

Each of these secular forces will have an important impact on the effectiveness and success of companies and governments alike. And while being challenging overall, the four trends involve a diverse and geographically dispersed set of winners and losers. Executives and policymakers therefore must make timely revisions (including pre-emptive changes) not only to their business models and operational approaches, but also to both their tactical and strategic mindsets.

Getting this right will require cognitive diversity, openness to constructive criticism, repeated scenario analyses, and multi-disciplinary approaches.

Moreover, because each of the secular forces involves a considerable degree of uncertainty (with lots of known unknowns, and probably more than a few unknown unknowns behind them), a combination of resilience, optionality, and agility also is important. And this is even before one considers unanticipated periodic shocks such as the COVID-19 outbreak.

The challenges to sound decision-making and leadership in both business and government are not limited to mapping each of the four secular forces and

the required adaptation. Decision-makers also must consider correlations and causalities between these trends that can make their total impact multiplicative rather than merely additive.

As a quick illustration, consider another aspect of demographic change: migration and the humanitarian challenges that often come with it. Climate change confronts countries with the possibility of waves of migratory human flows that they will find hard to accept and inhumane to refuse.

The combination of de-globalization and the misuse of AI and big data to infringe individual privacy is similarly troubling.

This could lead to questionable behavior by some governments and encourage malicious nonstate actors to disrupt societies and economies.

The world is in a period of accelerating change, the leading edge of which is the ever-growing list of developments that have gone from impossible to inevitable. Many (though by no means all) of the challenges facing business and political leaders may be broken down into four secular changes that can help anchor the timely formulation of required responses at the local, national, regional, and global levels. The faster that companies and governments recognize this, the likelier they will be to alter the balance of benefits, costs, and risks in their favor.

Mohamed A. El-Erian, Chief Economic Adviser at Allianz, was Chairman of US President Barack Obama’s Global Development Council. He is the author, most recently, of The Only Game in Town: Central Banks, Instability, and Avoiding the Next Collapse

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Commodities

2020 Paragliding Festival launched – novel activities promised for 15th edition also want to inaugurate; Abetifi Stone Age Park which is a cave which has been there for about 15,000 years and shows where the first people who came to Kwahu lived.”

A sub-Chief of the Mpraeso Traditional Council, Nana Anum, who spoke on behalf of the Chief of Mpraeso, Nana Ampadu Dadwiam II, Mpraesohene, said they were grateful for the continued support they enjoy each year during the Festival from the GTA and their partners. He urged them to ensure the safety and security of all those who will be participating in the festivities.

GTA Officials and the Media after the launch went to the take-off site to inspect ongoing works commissioned to put the place in shape in readiness for the Festival.

Paragliding Festival 2020 is under the theme “Soaring Beyond the Return.”

Registration is currently ongoing for anyone who would want to fly. Non-Ghanaians would have to pay 500 Cedis (USD93.72) in order to fly with Ghanaians promised special discount packages.

A full list of activities and other details on this year’s event will be announced later by the Ghana Tourism Authority.

By Samuel Obeng Appah

The Ghana Tourism Authority (GTA) has launched this year’s Paragliding Festival at Mpraeso-Kwahu in the Eastern Region.

The annual Paragliding Festival dubbed “Fun and Fly” comes on from April 10 -13, 2020.

The 2020 edition will be the 15th since its inception in 2005.

At the launch at the Mpraeso Chief’s Palace today, Deputy CEO in Charge of Operations at the Ghana Tourism Authority, Ekow Sampson, said this year’s will feature novel additions which promise to spice up the Festival.

“This year’s paragliding will have side attractions like health and fitness walk, spin and win and a tour by the Kwahu Tourism Initiative to the attraction sites in Kwahu. The Paragliding event is an aviation sport which can be enjoyed by all groups of people, that’s the youth and adults,” he said.

Sampson later in an interaction with the media added that as part of the crystal jubilee celebration of the event, “we want to have a special activity to climax the 15 years anniversary of the Paragliding Festival. We also have a developed site which we

Coronavirus scare: Africa countries refusing entry to their citizens The Africa Centres for Disease Control and Prevention (Africa CDC) says it has received reports that some African countries are refusing entry to their own citizens returning from China in the wake of the coronavirus outbreak.

Africa CDC made this announcement during a media briefing at the AU Summit in Ethiopia on Sunday evening.

The organisation’s director Dr John Nkengasong said this went against the instructions of the World Health Organisation (WHO) that there should be no restrictions of movement, goods and air travel.

“What we see are countries which are doing their individual decisions which we cannot control. For Africans who are returning, we have an obligation to receive our citizens and keep them for a while. Monitor them, screen them and then release them into the communities.

“I say this because, as of yesterday, we started receiving reports that some countries are refusing their own citizens from coming back to the country.

This cannot happen. We should all act collectively and make sure that we put pressure where it has to be placed, because Africans cannot be rejected.”

Nkengasong refused to name the countries in question, saying that the media should not create fear.

Africa CDC has been funded with $5m by the Bill and Melinda Gates Foundation to respond to the outbreak.

AU commissioner for social affairs Amira Elfadil added that 15 countries had already received training on diagnostics.

The 15 countries which received priority are those with direct flights to China.

“Africa has had suspected cases, but no confirmed cases.

We are working on prevention methods, working with the government of China which is supporting CDC. We are doing

our maximum best to protect the continent from the coronavirus.” Until recently, South Africa, Cameroon, Ghana and Nigeria were the only countries equipped with the ability to run accurate testing. To mitigate this, Africa CDC is planning to do another round of training for

20 additional countries and will supply them with test kits. “China is going to ship 3 000 test kits which are arriving on Monday for back up in cases of emergency. We are better prepared than we were last week,” Nkengasong said.

Moroccan capital Rabat named African capital of culture

The Moroccan capital Rabat was designated on Saturday as the African capital of culture for 2020-2021, official news agency MAP reported.

The decision was taken by the Committee of African Capitals of Culture following its meeting, held at the headquarters of United Cities and Local Governments of Africa (UCLG Africa) in Rabat.

The meeting examined the the merits of the candidacy of Rabat and the conditions that this city must fulfill to be the mirror of African culture for the period 2020-2021.

A team has been set up to work on the general programming of the various planned events and activities to celebrate the African Continent in its plurality and diversity and contribute to the writing of a common history. (Source:CGTN Africa)

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Africa Business

Long-term performance of the Industrial sector is at risk, as companies hold on to legacy strategies After African Continental Free Trade Area (AfCFTA), Africa could provide excellent opportunities for industrial growth if challenges are addressed Industrials are braced for yet another revolution, according to the latest research from leading global law firm Baker McKenzie. Back to the future: Why the lure of the past could jeopardize the future for Industrials shows that at the beginning of a new decade, the sector is experiencing disruption at scale, from technology and trade to skills and sustainability. While many of these market shifts are having a positive impact – placing Industrial companies at the forefront of dynamic developments and exciting innovations, leaders of the largest Industrial companies are concerned about maintaining and protecting business performance.

Baker McKenzie worked with an independent market research partner to compile this research. They conducted 700 interviews with chief executives, chief strategy officers and company directors leading multinationals in the automotive, aviation & aerospace, chemicals, construction & engineering, manufacturing and transportation sectors. These organizations turnover between US$1bn-US$499bn annually – encompassing the largest global industrials.

The research found that captains of industry remain reliant on the strategies that have delivered in the past, rather than pursuing future-facing routes to success – taking comfort in the familiar and looking ‘back to the future’ for reassurance on performance, as Nikolaus Reinhuber, Global Chair of Baker McKenzie’s Industrials, Manufacturing and Transportation (IMT) industry group explains, “The imperative to build new revenue streams is a careful balancing act for Industrials. Innovation for the sake of innovation risks losing sight of commercial reality – going too far, too soon and leaving key stakeholders behind. But retreating into the ‘known’ approaches of the past also presents a threat to performance – failing to evolve and meet the changing demands of customers, regulators and shareholders is not a viable option. How companies tread the line between aspiration and action is perhaps the most important issue Industrials must address in the coming years.”

Despite unique challenges, Industrials have a significant opportunity to thrive in the future.

The Baker McKenzie Industrial Change Barometer – an assessment of Industrials’ readiness for change – highlights both pockets of excellence and urgent areas to address.

In Africa, the implementation of the African Continental Free Trade Area Agreement (AfCFTA) could provide excellent opportunities for Industrials to grow in new, streamlined markets in years to come, but the continent also has urgent challenges to address first, including legislative uncertainty, vast infrastructure gaps and a lack of required skills.

Performance threat: Industrials reluctant to abandon past strategies and embrace technology Baker McKenzie’s barometer shows that the pace, scale and complexity of market change is placing future growth at risk, according to 79% of leaders. While financial performance in the Industrial sector today is buoyant – an overwhelming majority (87%) of companies in the sector saw revenue rise last year – two thirds (66%) of Industrial leaders admit that managing disruption from technology, trade, sustainability and skills comes at huge cost to business, and could jeopardize future growth.

The urgent need to develop new services to replace obsolete ones is also a concern for up to 61% of Industrials.

Baker McKenzie Corporate Partner Jannan Crozier said that, “Industrials must look forward, and become adept at deciphering innovation hype from commercial gold. Organisations in the sector urgently require actionable technology, bold strategies and digital talent to accelerate future performance.

The current boom in technology-focused M&A is testament to this race among traditional Industrials to acquire the platforms and people needed for success.”

The survey also shows that the largest companies in the industry are most likely to take transformational action (45%) – reflective of the scale of the task to pivot long-standing infrastructure and operations.

While many Industrials remain focused on digitizing operations and interactions for the sake of efficiency, a significant number are also considering how they can integrate revenue-generating technology into their business faster – digitizing existing products and services,

restructuring portfolios to free up investment, and acquiring mid-market innovators and minority stakes in start-up disruptors.

“Making transformation happen is the most challenging part of the journey Industrials are undertaking. While vision and culture are critically important – and a lack of positive agreement in these areas continues to block change for many – making decisive investments, taking action and seeing strategy through will be the difference between surviving and thriving. But delivering change in today’s disruptive environment requires new systems that may feel alien.

For example, consolidating innovation efforts through cooperative working groups outside the organization or industry, and pooling talent and resources into these networks to speed up time to market,” Nikolaus Reinhuber added.

“In order to foster economic growth and increase employment in Africa, industrial growth has been prioritised across the continent. Countries in the region must develop crucial infrastructure and skills necessary to be able to implement advancements in technology and be ready for the movement to digitisation, the decarbonisation agenda and automation.

African ICT, in general, remains under-developed due to poor access to electricity, infrastructure and low broadband penetration. Efficient ICT infrastructure is the backbone of the digital economy and necessary for the future of the Industrial sector. Further, African governments must ensure they have the required workforce that is skilled in the right areas, as opposed to citizens that are skilled in operations that are unlikely to last,” says Marc Yudaken, Partner and Head of the IMT indus-

try group at Baker McKenzie in Johannesburg.

The trade barriers that are holding back transformation According to Baker McKenzie, almost three quarters (72%) of leaders agree that the legacy footprint of their company is leaving them exposed to trade volatility. Faced with significant disruption to trading relationships, supply chain partnerships and access to raw materials, Industrials’ wide international reach now means greater complexity.

As new trade barriers appear overnight and protectionist trade philosophy and policy prevails, it is increasingly difficult for Industrials to take a long-term view on the location of their operations and supply chains, according to the Firm.

However, just because organizations may be exposed by their presence in a particular market, doesn’t mean they can’t afford to be there. It is critical to the future performance of Industrials that they find new ways to navigate these issues.

To get ahead of trade disruption, Industrials are looking at factors within their control that can insulate their organizations from increasing trade risk. The supply chain is a particular focus for companies in this volatile environment – over half of Industrials surveyed by Baker McKenzie are actively seeking to identify new partners, renegotiate with existing suppliers and digitize wherever possible.

“There is an opportunity now for Industrials to review their operations and partnerships through the lens of trade volatility, environmental and labor considerations, and make proactive change,” according to Mattias Hedwall, Global Chair of Baker McKenzie’s International Commercial & Trade group.

“But a holistic perspective is es-

sential. Shifting manufacturing to a lower cost jurisdiction may seem like a smart move. But rapidly evolving regulation makes this calculus more complex – particularly given the global imperative to raise compliance and governance standards in relation to sustainability. Cost-centered decisions made based on a narrow view of today’s trade environment may quickly become incompatible with growth,” he continued.”

“Where there are tendencies in some parts of the world to build barriers to trade, AfCFTA provides a unique opportunity for African nations to work together and present a streamlined investment environment for the global Industrial sector.

AfCFTA will, according to the African Union’s new Chair President Cyril Ramaphosa, enable the continent to work together, reignite industrialization and pave the way for the continent’s integration into the global economy. But while AfCFTA is set to help address Africa’s industrial deficit, there a number of obstacles that must first be overcome, including a lack of cohesive and reliable infrastructure, unreliable sources for water and electricity, and political instability and policy concerns.

“To spur industrial growth across Africa, the continent first needs legislative reforms that encourage foreign investment and boost infrastructure development. Legal certainty allows potential investors to assess opportunities and risks on a commercial basis, which is essential for drawing in the capital Africa desperately needs to develop the infrastructure and deliver on the continent’s industrial growth potential,” explains Yudaken.

Drive for sustainability means a changing marketplace Baker McKenzie’s survey showed that Industrials are primarily looking inward to manage disruption resulting from new sustainability directives and demand – creating internal awareness programs and embedding sustainability into corporate strategy and compliance.

But as global policy on ESG is formalized, Industrials must ramp up efforts to reduce environmental impact.

“As disruptive market forces steer companies to a ‘stakeholder capitalism’ model, which allows for a wider definition of corporate governance and purpose – including both profit and planet – there is growing pressure on Industrials to lead and deliver on sustainability,” said Climate Change Partner John Watson. “Investors, dealmakers, customers and employees are becoming more demanding of Industrials, as sustainability plays a greater role in decisions to invest in, buy from and work for organizations. But more than reputation, new ESG standards will soon formalize policy in this area – increasing regulatory mandates, shifting from voluntary to legal requirements and raising the bar for compliance.”

Africabusiness.com

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Andela hosts Ghana tech ecosystem at Media Connect and Remote Heroes events Andela, the engineering-as-a-service business that helps companies build teams quickly and cost-effectively so they can ship faster, hosted experienced software engineers and tech journalists in Ghana, as it looks to recruit more experienced engineers and scale its Ghana operations in 2020.

Following the launch of its marketing campaign - Grow with Andela, the “Media Connect” and “Remote Heroes” events are part of plans to connect with the Ghanaian media landscape and attract more senior engineers.

In 2017, Andela scaled its remote operations to Ghana in a bid to hire more experienced engineers, to help the organization meet the growing market demand for engineers. Over the past two years, Andela has successfully hired over 50 experienced engineers in Ghana whose careers have grown tremendously from working with global companies like GitHub, Coursera, PlutoTv, and ProdPerfect. Andela’s deliberate move to directly connect with the Ghanaian senior engineers

and press with its events are informed by a need to hire more senior technologists.

At the media connect event, Solomon Apenya, Principal Engineer, Andela Ghana said in his fireside chat session: “In all my 12 years of being a

software engineer, the experiences I have gathered over the last 3 years as an engineer at Andela are my most valuable and I have seen my skill grow tremendously. Andela isn’t just the home of the best engineers in Africa, our engineers are

some of the best in the world.”

Oluwasola Obagbemi, Andela’s Senior Communications Manager for Africa shared Andela’s compelling origin story and the company’s direction going forward. During her presentation, she stated that “An-

No turning back on AfCFTA; it’s a gamechanger— Trade Minister

By Patrick PAINTSIL

The local economy stands to gain immensely from AfCFTA-the single continent-wide market-- with an expected surge in foreign direct investments and increased income levels for Ghanaians, Trade and Industry Minister, Alan Kyeremanten, has said.

“The AfCFTA is the gamechanger for the country and we should all work together to ensure that this agreement survives; there is no turning back, and we need to be convinced that there is value in the single continent-wide market.

“Hosting the AfCFTA Secretariat, for instance, will be the single most important factor for attracting FDIs. If an investor knows that he/she could reach the whole of Africa through Ghana, he/she will be convinced to invest,” he said at an inauguration for seven technical working groups tasked to develop a national program of action for boosting intra-Africa trade.

The AfCFTA is duty-free, quota-free single market and the largest single trade area which seeks to, amongst others, develop regional value chains to support industrialization and enhance the competitiveness of Africa’s private sector to the continent’s economic transformation.

Other direct benefits of the AfCFTA to the country, according to Mr. Kyeremanten, will be to enhance government’s industrial agenda, a ready market for small and medium enterprises as well as general reduction in the price of goods and services coming from across the continent.

“If we produce, we have

to sell and to be able to sustain new enterprises that are emerging under the government’s initiatives, we should be able to export. Accessing other markets has not been easy and the AfCFTA offers a convenient platform,” he said.

On the continental front, he said the AfCFTA will be Africa’s trump card to compete among the big league of global traders.

“There is no evidence that a country has achieved significant growth without being part of a regional market. If Africa wants to be among the big league of global players, the starting point will be our regional market,” Mr. Kyeremanten indicated.

Minister for Foreign Affairs and Regional Integration, Shirley Ayorkor Botchway, indicated in her remarks that the single continent-wide market will be a good boost for intra-Africa trade and the Ghanaian economy.

She assured that as host of the AfCFTA Secretariat, government remains committed to the success of the agreement and will provide the requisite tools and facilities to ensure that the core objectives of the market are achieved.

“The TWGs must work assiduously to protect and advance the country’s interest in the agreement; you must ensure that Ghana is not shortchanged

and that its role in the continent-wide market will be beneficial to its citizens,” she advised.

The seven technical working groups will provide action plans for the seven thematic clusters of: trade facilitation; trade and development finance; enhancing production capacity; trade policy, factor market integration, trade-related infrastructure; and trade information.

Their work will help to domesticate the ideals of the AfCFTA to fit into the country’s priorities so that the Ghanaian economy could generate maximum benefits from the huge market.

dela is home to some of the world’s best technology talent, and engineers who join us will not only be doing meaningful work that enhances their careers and gives them access to amazing global opportunities, they’ll also be tapping into a community of great engineers who they can learn from on their journey to becoming world-class.”

Andela announced the launch of its “Grow with Andela” campaign in November 2019 and hosted a Remote Heroes event across Nigeria, Kenya, Uganda, and Rwanda. On the 8th of February, Andela hosted its Remote Heroes event which was attended by key stakeholders and leading technologists in Ghana such as Edem Kumodzi, CTO at Africa Foresight Group, Ivy Barley, CEO of Developers in Vogue, Williams Adu, Principal Engineer at Andela and Stefan Froelich, Principal Engineer at Andela who all shared insights on “Toolkit & Essentials for Engineers on Becoming World Class” at a panel session.

West Africa: Nigeria Calls for a Delay in Eco Regional Single Currency Launch – Presidency The Nigerian presidency said via social media on Monday that it is calling for a delay in the Eco, the West African single currency that is set to be unveiled this year.

“Nigeria’s position on the Eco is that the convergence criteria (between states) have not been met by the majority of countries” which will adopt this common currency, said the Nigerian presidency on its Twitter account.

“There therefore has to be an extension of time on the take-off of the single currency,” according to the tweet.

Nigeria has its own currency, the Naira.

The Eco single currency remains highly controversial, as after more than 25 meetings on the subject, the 15 member countries of the Community of West African States (ECOWAS), an agreement was finalized in December that it would be launched in 2020.

Eight of the 15 ECOWAS countries use the CFA franc, but were looking to cut financial ties to France, their former colonial power. France currently hosts half of these countries’ foreign exchange reserves.

Many were surprised when Cote d’Ivoire’s President Alassane Ouattara made the announcement while meeting with his French counterpart Emmanuel Macron.

Nigeria, a member of ECOWAS, and other Anglophone West African countries said they were not in agreement, as the Eco did not meet the requirements adopted in the region to set up the single currency. Allafrica.com