Business24 Newspaper (March 11, 2020) by Business24 Online

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| WEDNESDAY MARCH 11, 2020

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Chamber warns: No IPP for sale

CAL Bank proposes GH¢0.089p dividend per share

By Benson Afful

Amid ongoing attempts by the government to renegotiate apparently onerous power generation contracts, the Chamber of Independent Power Producers, Distributors and Bulk Consumers (CIPDiB) says no Independent Power Producer (IPP) is up for sale or interested in government participation, rejecting a proposal that it fears could lead to the state taking over some IPPs. CIPDiB is the main industry body representing private power producers in Ghana, and its Chief Executive Officer, Elikplim Kwabla Apetorgbor, told Business24 in an exclusive interview that a proposal by the government to establish a US$2 billion Energy Sector Fund to refinance IPPs’ debts and possibly acquire some of the companies is “not strategic”, warning it would amount to “nationalisation of the energy sector” were the idea to be forced on IPPs. “Truly, the [energy] sector is fluid and responds quickly to various dynamics, so restructuring per se is not a bad idea. What is key, however, is that any and every form of restructuring of the sector must

By Patrick Paintsil

Philip Owiredu, CEO CAL Bank

be geared towards making it fit for purpose. It is against this backdrop that we ought to critically evaluate one of government’s key policy interventions in the sector. And that is the plan to create a US$2 Billion Energy Sector Fund to refinance the existing debt of the Independent Power Producers (IPPs). “Creating a US$2 Billion Energy Sector Fund to refinance the existing debt of the IPPs within Ghana’s energy sector or outright purchasing of some of the IPPs with the primary goal of facilitating extended and cheaper

financing to key producers and stakeholders with the aim of reducing government’s excess capacity payment and overall costs within the sector is not strategic,” Mr. Apetorgbor said. On the contrary, he added, the US$2 billion fund would be better applied to finance “the legitimate and non-negotiable capacity charges of the IPPs.” The government has bemoaned the situation where it paid nearly US$1 billion for unused power in the last two years due to excess electricity contracted on a take-or-pay basis with independent power producers. Take-or-pay power

generation contracts are common in the energy industry and oblige the off-taker (government, in this case) to pay for power supplied by the producer irrespective of available demand. The payments over the last two years, which were financed with proceeds from loans, have compounded the country’s debt problems, coming on the back of an expensive financial system rescue that has so far cost

CAL Bank has announced that directors of the company have recommended a final dividend per share of GH¢0.89p to its shareholders for the 2019 financial year, according a statement it issued to the Ghana Stock Exchange. The figure is a significant increase over the GHS0.048 per share that was disbursed for same period 2018. All shareholders registered in the books of CAL at the close of business on Thursday, May 7, 2020, will qualify for the final

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EXCHANGE RATE (BANK RATE) *POLICY RATE

USD$1 =GH¢5.4651

BRENT CRUDE $/BARREL

USD$1 =GH¢5.5000*

NATURAL GAS $/MILLION BTUS

16%*

GOLD $/TROY OUNCE

GHANA REFERENCE RATE

16.11%

CORN $/BUSHEL

*INFLATION RATE

7.8%*

COCOA $/METRIC TON

PRODUCER PRICE INFLATION:

13.3%

COFFEE ¢/POUND:

91 DAY TREASURY BILL INTEREST RATE

14.6898%

SUGAR ¢/POUND

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+1.00 ($52.90) +0.02 ($1.77) +4.90 ($1,599.70) +1.25 ($376.75) +11.00 ($2,661.00) +4.25 ($115.60) -0.33 ($13.81

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CAL Bank proposes GH¢0.089p dividend per share continued from page 1

More attention, investment needed to bridge housing deficit Enough of the numbers, the attempts, the rhetoric; we need a comprehensive plan to deal decisively with the country’s housing deficit. It is an unpleasant site to see young men and women, who migrate to major towns and cities in search of work and better living conditions, sheltering under market stalls, and balconies of closed roadside simply because they cannot afford to pay a two-year rent advance demanded by landlords. Though this is a clear violation of the law, the Rent Con-

trol Department is simply so under-resourced that its attempts to enforce the law has been feeble. Hardworking employees are also simply not able to buy their own lands and develop. Their low-income levels also hinder their ability to access mortgages. For instance, a plot of land measuring 100 x 70 square feet (Sqft) in new developing areas on the fringes of the city where land is available have increased by as much as 30-40 percent. The Business24 agrees with the Ghana Real Estate Development Association (GREDA) that something OUGHT to be done about land

acquisition in the country. Again, government should work closely with GREDA do develop a comprehensive plan to address the decade old problem. Indeed, President of GREDA, Ebo Bonful, recently advocated for a review of the existing mortgage law as part of the solution to address the current housing deficit. “We’re hoping that there will be a deepening of the mortgage market because we can’t get people to buy the houses if there are no mortgages. We’re hoping that the proposal we sent for the review of the mortgage law will be looked into very quickly so that

Bridging the housing deficit: Land prices, rent remain high continued from page 1

dividend as the register will be closed to the public by May 8 and final dividend paid on June 5, according to the statement. “Consequently, an investor purchasing CAL shares before this date will be entitled to the final dividend. However, an investor buying CAL shares on or after Tuesday, 5th May, 2020 will not be entitled to the final dividend,” the statement read. The dividend payment is a reflection of the bank’s impressive performance in the year under review despite the panic situation that came with the clean up of the banking system. CAL Bank grew it assets base by 30.2 percent in the 2019 financial year, from GH¢¢5.4 billion in 2018 to GH¢7 billion. The bank grew its stock of outstanding loans to GH¢2.9 billion, after achieving loan growth of 20.3 percent. It also recorded healthy growth in profit after tax, operating income, net interest income and deposits, all of which surged by 7percent, 12.9percent, 24.1percent and 20percent respectively.

GH¢7 bn

Assets base growth

the banks will be comfortable to roll out mortgages to buyers who buy our houses. “This is our biggest problem, so we are hoping that our proposal to government which is a comprehensive one will be looked at and will be transformed into a law so that we can get mortgages for our buyers,” he noted. This paper backs his call and believe that a holistic approach should be adopted to address this major challenge facing the Ghanaian economy. Enough of the rhetoric!!

respectively, and the nonregulation of land sales has meant the majority of Ghanaians cannot rent a decent place to live or buy expensive land for development in major towns and cities. Given the low-income levels of people in the country, the high cost of rental and land in the country has meant the inability of a large section of the working class to rent decent accommodation, buy a plot of land for development or qualify for mortgages. The result is an influx of people into already densely populated areas in major towns and cities. About 50% of Ghanaians, according to the Ghana Real Estate Developers Association (GREDA), live in sub-standard housing and

various unsuitable structures. GREDA pushes for review of existing mortgage law President of GREDA, Ebo Bonful, has advocated for a review of the existing mortgage law as part of the solution to address the current housing

deficit. He believes that this will enable more banks provide mortgage facility to help address the housing challenge. “We’re hoping that there will be a deepening of the mortgage market because we can’t get people to buy the houses if

there are no mortgages. We’re hoping that the proposal we sent for the review of the mortgage law will be looked into very quickly so that the banks will be comfortable to roll out mortgages to buyers who buy our houses. “This is our biggest problem, so we are hoping that our proposal to government which is a comprehensive one will be looked at and will be transformed into a law so that we can get mortgages for our buyers”, he said. “We have sent a proposal to the government to develop affordable housing, we want to do 20,000 housing units per annum but we need a certain kind of arrangement with government to make that happened. If we get the cooperation that we need from government, we will deliver on that to help reduce the deficit.”

Chambers warns: No IPP for sale continued from page 1 the state close to GH₵18 billion. The government has consequently been holding talks with the IPPs to renegotiate or restructure the expensive power purchase contracts, hoping that a successful outcome would ease the debt burden in the energy sector. Mr. Apetorgbor blamed the Public Utilities Regulatory Commission’s (PURC) tariff methodology for causing the debts which the state now has to bear. He said an annual revenue gap has been created due to “the ignored or deferred

capacity charge component in the tariff methodology”, whose funding remains the key challenge of the sector. “This gap and its cumulative consequence will linger on if a sustainable financing is not arranged,” he told this paper. “From this, it is clear that the supposed half-a-billion-dollar [annual] cost of excess capacity on the neck of government is candidly an avoidable cost—that is, government only wants to look good before the end user by creating artificial lower tariffs, where some prudent costs are being disallowed.”

Editorial: LIMITED To advertise or make enquiries info@thebsuiness24online.com Tel: +233 030 296 5297 / 030 296 5315. Subscribe: thebusiness24online/subscribe Copyright @ 2019 Business24 Limited. All Rights Reserved.

Dominic Andoh: Editor 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

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 MARCH 11, 2020

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NEWS

Tree Crops Development Law is key – Agric director tells farmers By Nana Yaw Reuben Jnr

The Director for the Department of Food and Agricultural for Wenchi Municipal, Mr. Victor Yao Dablu, is asking cashew farmers in the Municipality to embrace the implementation of the Ghana Tree Crop Authority Act, which is in the offing. According to him, the bill has been approved by Cabinet and is expected to facilitate the setting up of the Ghana Tree Crop Development Authority (GTCDA); the authority will be the statutory body that will regulate the country’s tree crops sub-sector. Mr. Dablu said the purpose is to regulate the production, processing and trading of tree crops specified in the first schedule of the Tree Crop Development Act. “It is also to set standards and specifications for fresh and processed products from selected value chains specified in the first schedule of the Tree Crop Development Act” he added. He made this disclosure during the handover of some farm service equipment’s that farmers can use to resolve the challenges that have been identified in the cashew production process

funded by the European Union and ADRA UK in Wenchi in the Bono Region. The ceremony was organized by the Adventist Development and Relief Agency (ADRA) a global Humanitarian organization of the Seventh-day Adventist Church with a mission to work with people in poverty and distress to create just and positive change. Mr. Dablu revealed that the authority will regulate and manage the production, processing and marketing of tree crops such as cashew, mango, coffee and citrus. The Project Manager of the Bono-Asante Atea (BAAT) Project Dr. Anthony Augustus Mainoo explained that the project intends to contribute to the achievement of Sustainable Development Goals (SDGs) 1: End Poverty in all its forms everywhere; Goal 8: Promote inclusive and sustainable economic growth, employment and decent work for all; and Goal 17: Revitalize the Global Partnership for sustainable development. He added that implementation of this Bono-Asante Atea project was started by the Project’s

Implementation team in the Wenchi Municipal a year ago by creating awareness on the need to participate in the cashew business, through radio campaigns and farmer registration exercises. “The project has since built the capacities of its clientele through training and skills development; these, added to the improved starter package of resources that have been delivered and are increasing cashew production and productivity for the Wenchi Municipality” he said. Dr. Prince Kwakye Afriyie Municipal Chief Executive for Wen-

Ethiopian celebrates women with 6th Consecutive All-women Operated Flight Ethiopian Airlines has made yet another history on 7 March, 2020 operating an all-women functioned flight to Washington DC. Africa’s Largest Aviation Group and SKYTRAX Certified Four Star Global Airline has scored the all-female flight crew feat highlighting the airline’s progress in empowering African women, and the contribution of women to the socio-economic development of the continent. Regarding the all-women functioned flight, Ethiopian Group CEO Mr. Tewolde GebreMariam, remarked, “Ethiopian firmly believes that such remarkable flights inspire African women and young girls to dream big and realize their dreams not only in aviation, but also in science, technology, engineering, art and other fields. While we celebrate the economic, social and political achievements of women in Africa, we take a bold move towards further championing gender equality in Ethiopia and Africa at large.” Ethiopian all-women flight crew flew the B777 from Addis Ababa to the US capital while other female professionals handled all the ground operations including flight dispatch, load control, ramp operation, onboard logistics, safety and security, catering as well as air traffic control. As an equal opportunity employer, Ethiopian creates an enabling environment for women to become the next generation aviation experts. The airline has seen a remarkable rise in the number of women in different leadership positions. Ethiopian has been operating all-female flights since 2015. The airline has so far flown to Bangkok, Kigali, Lagos, Buenos Aires and Oslo with all female crew.

chi indicated that the industry needs more support from global partners to boost the value chain. “There are still numerous challenges facing this industry but the fact that its gains are guaranteed makes it a worthy venture especially considering the fact that the government and other stakeholders are working on fixing these challenges” he said. “Farmers in Ghana are very poor but elsewhere in Europe the narrative is different, why can’t it be like that in Ghana” he quizzed. Chairman for the occasion, Nana Ansere Asakrah II Akrobi-

hene, advised farmers to keep the items handed over to them in good care and not use them for their personal business as most individuals do in Ghana. He urged all to be supportive in improving various stages of the cashew value chain; he is confident that the project’s expected results of increased access to employment opportunities, ensuring sustainability of development of local authorities and increased income generating activities in the selected cashew growing areas will be realized by the project closure. The Program officer for ADRA UK, Daria Markek, thanked the Ministry of Food and Agricultural and the entire value chain actors for their great support for the project. “I would like to gratefully acknowledge the work of our project Management team and you the farmers; it has been positive and successful and the program is running smoothly” she added. Also present at the handing over ceremony were representatives from the Cashew Value Chain, officials from the Ministry of Food and Agriculture, officials from ADRA and the Wenchi Municipal Assembly.

Elsie Awadzi receives “Woman of Excellence Award”

The Second Deputy Governor of the Bank of Ghana, Mrs. Elsie Addo Awadzi, has been conferred with the Ghana Women of Excellence Award for her contribution to the economic development of Ghana and other IMF member countries, in the areas of Public Financial Management and Fiscal Responsibility. The 5th Ghana Women of Excellence Awards was organised by Top Brass Ghana and held under the auspices of the Ministry of Gender, Children and Social Protection. The awards ceremony is part of the 2020 International Women’s Day celebrations, which is being marked under the theme: “Empowering the

Ghanaian Woman for National Development”. The citation accompanying the award recognised her works with several IMF member countries to strengthen their legal and institutional frameworks to ensure more robust public financial management, public debt management and fiscal responsibility in the context of IMF surveillance, lending, and technical assistance. “In recognition of her outstanding contribution to the economic development of Ghana and other IMF member countries in the areas of Public Financial Management and Fiscal Responsibility, this Ghana Women of Excellence Award is conferred on Mrs. Elsie Addo Awadzi,” a section of the citation read.

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BUSINESS24 | WEDNESDAY MARCH 11, 2020

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F E AT U R E

Coronanomics 101

Last week, G7 finance ministers and central bank governors vowed to use “all appropriate policy tools” to contain the economic threat posed by the COVID-19 coronavirus. The question left unanswered is what is appropriate, and what will work. The immediate response took the form of central bank rate cuts, with the US Federal Reserve fast off the mark. Though central banks can move quickly, however, it is not clear how much they can do, given that interest rates are already at rock-bottom levels. In any case, the Fed’s failure to coordinate its rate cut with other major central banks sent a negative signal about the coherence of the response. Moreover, monetary policy can’t mend broken supply chains. My colleague Brad DeLong has tried to convince me that an injection of central bank liquidity can help get global container traffic moving again, as it did in 2008. (Now you know the kind of elevator conversations we have at UC Berkeley.) But the problem in 2008 was disruptions to the flow of finance, which central banks’ liquidity injections could repair. The problem today, however, is a sudden stop in production, which monetary policy can do little to offset. Fed Chair Je-

rome Powell can’t reopen factories shuttered by quarantine, whatever US President Donald Trump may think. Likewise, monetary policy will not get shoppers back to the malls or travelers back onto airplanes, insofar as their concerns center on safety, not cost. Rate cuts can’t hurt, given that inflation, already subdued, is headed downward; but not much real economic stimulus should be expected of them. The same is true, unfortunately, of fiscal policy. Tax credits won’t get production restarted when firms are preoccupied by their workers’ health and the risk of spreading disease. Payroll-tax cuts won’t boost discretionary spending when consumers are worried about the safety of their favorite fast-food chain. The priority therefore should be detection, containment, and treatment. These tasks require fiscal resources, but their success will hinge more importantly on administrative competence. Restoring public confidence requires transparency and accuracy in reporting infections and fatalities. It requires giving public health authorities the kind of autonomy enjoyed by independent central banks. (Unfortunately, this is not something that comes naturally to leaders like Trump.) Still, expansionary fiscal policy, like expansionary monetary policy, can’t hurt. Here, Italy has shown the way, postponing tax and mortgage payments,

extending tax credits to small firms, and ramping up other spending. The US so far has shown less readiness to act, failing even to encourage people to seek testing by helping them pay their medical bills. One obstacle to fiscal stimulus is that its effects leak abroad, because some of the additional spending is on imports. As a result, each fiscal authority hesitates to move, and governments collectively provide less stimulus than is needed. This justifies coordinating fiscal initiatives, as G20 countries did in 2009. But, by that year’s standards, the recent G7 communiqué promising “all appropriate action” was a nothingburger that did little to bolster confidence that governments would take the concerted steps called for by worsening global conditions.

debted. This exaggerated argument ignores the fact that the Japanese government has extensive public-sector assets to offset against its debts. Likewise, we are reminded that the US has a looming entitlement burden, an argument that ignores the fact that the interest rate on the public debt is perennially below the economy’s growth rate. And while China’s state-owned enterprises may have massive debts, the tightly controlled financial system limits the risk of the kind of financial crisis that the country’s critics have been erroneously forecasting for years.

Then there are fiscal hawks and monetary-policy scolds who claim that any official intervention will be counterproductive. They warn, for example, that financial systems will be impaired if central banks push interest rates deeper into negative territory. But while there surely exists an interest rate sufficiently below zero where this is the case, all the evidence is that current rates are still very far from this point.

Central banks and political leaders, faced with a global crisis, should ignore these fallacious arguments and use monetary and fiscal policies to ensure market liquidity, support small firms, and encourage spending. But they must recognize that these textbook responses will have only limited effects when the problem is not a shortage of liquidity, but rather supply-chain disruptions and a contagion of fear. Today, economic stabilization depends most importantly on the actions of public-health authorities, who should be given the resources and leeway to do their jobs, including freedom to cooperate with their foreign counterparts.

In addition, we are cautioned that fiscal stimulus by governments with heavy debts will undermine confidence, rather than bolster it. Japan, it is said, is already dangerously over-in-

In the fight against the COVID-19 pandemic, economists, economic policymakers, and bodies like the G7 should humbly acknowledge that “all appropriate tools” imply, above

all, those wielded by medical practitioners and epidemiologists. Coordination, autonomy, and transparency must be the watchwords.

“Though central banks can move quickly, however, it is not clear how much they can do, given that interest rates are already at rock-bottom levels”

David Malpass, President of the World Bank Group Barry Eichengreen is Professor of Economics at the University of California, Berkeley. His latest book is The Populist Temptation: Economic Grievance and Political Reaction in the Modern Era. Copyright: Project Syndicate, 2020. www.project-syndicate.org

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E D U C AT I O N

Safety measures on Ashesi University campus in the face of global coronavirus outbreak The Coronavirus outbreak started in December 2019 and currently has affected 92,943 in about 60 countries. Six countries in Africa - Egypt, Algeria, Tunisia, Senegal, Morocco and Nigeria - have reported confirmed cases. There have been no confirmed cases of COVID-19 in Ghana to date. As at the time of writing, 40 suspected cases have tested negative in Ghana (the disease situation is rapidly evolving and the University community be updated periodically). Preparations by University Health Services The health services team is currently undergoing training on COVID-19 with the World Health Organization to be well educated on the condition. Dr. Oliver-Commey, the university physician and an infectious disease specialist, is a member of Ghana’s COVID-19 medical team and will be providing education and simulation to the health team and the general university community on the disease. The Health Centre has also purchased medical equipment for prevention and identification of possible symptoms; and the university has the capacity to house up to seven people, if necessary, who may show symptoms and will need to stay in private quarters. Public Health Campaign The Health Centre has started a campus health campaign on COVID-19, starting with e-mail and posters. The public health campaign will continue throughout the semes-

ter and will include a broader set of channels. Target audiences will also contractors and vendors on campus, and special education sessions have been planned for auxiliary staff like cleaners and security. Students, Faculty, Staff and Others Returning to Campus After Midsemester Break We are currently aware of 10 members of our community who are returning from one country with low-risk exposure to COVID-19 (1 confirmed case). We have been in communication with all of them, and are working handin-hand to ensure safety. Everyone traveling into Ghana from affected countries should expect to be checked by health authorities at the Kotoka Airport. Returning members of our community will also be screened by the Health Centre on campus, and those with symptoms will stay in restricted quarters on campus for two weeks. During the period, body temperature will be recorded twice a day. Ghana’s COVID-19 national response team will be informed in the unlikely event that illness continues or worsens, and official testing will be conducted at Noguchi Memorial Institute. Precautions For Hosting Visitors On Campus In the event that you will be hosting guests from affected countries on campus, please: 1. Inform the Natembea Health Centre to enable us provide case-by-case guidance and safety support. 2. Where possible, consider rescheduling visits and

convenings with guests from affected countries until further notice. 3. If you have to host guests from affected countries, have prior conversations with them about the possibility of restricted movement within campus. Precautions For The Entire University Community All students, faculty and staff have to complete a questionnaire to determine their level of risk based on recent travel history, and potential exposure to affected countries. Appropriate action, ranging from monitoring to restricted movement on campus, will be taken based on the risk assessed. Emergency Response Plan The university is developing a campus response protocol in the event of severe COVID-19 spread in Ghana, which will be completed by mid to late March 2020. The Ashesi Community will be informed about the emergency response protocol as soon as it is ready and a simulation will be held together with the Ghana Health Service.

Professor Simon Nemutandani pays courtesy call on the Provost of College of Health Sciences Professor Simon Nemutandani, Chairperson of the Association of Deans of Dental Schools in Southern Africa, has paid a courtesy call on the Provost of the College of Health Sciences, Reverend Professor Patrick F. Ayeh-Kumi to discuss issues concerning the University of Ghana Dental School, College of Health Sciences. The Provost, Reverend Professor Ayeh-Kumi in his welcome remarks indicated that he was grateful Professor Nemutandani visited the University of Ghana Dental School and the College of Health Sciences. He was optimistic of a fruitful collaboration with Professor Nemutandani to move the School and the entire College forward. He was appreciative of Professor Nemutandani’s effort to assist the College in accessing funds to complete the University of Ghana Dental School Building and other requisite equipment to make the School effective. Professor Ayeh-Kumi affirmed the College’s readiness to make the School more resourceful in order to be able to meet its mandate. Professor Simon Nemutandan,i who is also the Chief Executive Officer of Wits Oral Health Centre and Head of the School of Oral Health Sciences, South Africa, thanked the Provost for the warm reception. He mentioned that there had been discussions since his arrival in Ghana on the progress of the University of Ghana Dental School. He disclosed that Henry Schein, a manufacturer of dental materials was willing to assist Universities to make them more

resourceful, and consequently assured the Provost of his support in that regard. Professor Nemutandani extended an invitation to the Ag. Dean of the Dental School, Professor Ebenezer Anno-Nyako to a conference in South Africa which is expected to be an avenue to interact with prominent agencies to share ideas and seek support. On issues of oral health, Professor Nemutandani indicated that issues of oral health needed to be addressed and taken seriously in our part of the world, stating that he was looking forward to building a strong relationship with the faculty of the College. Present at the meeting were the Coordinator, Vice Chancellor’s Strategic Teams, Professor Andrew Anthony Adjei, the Ag. Dean of the University of Ghana Dental School, Professor Ebenezer Anno-Nyako, the College Secretary, Mr. Michael Opare Atuah and the Ag. School Administrator, Mrs. Selie Ama Baiden.

Gender gap in primary school enrolment halved over past 25 years UNESCO has unveiled a new fact sheet on girls’ education as part of the #HerEducationOurFuture initiative which focuses on the progress achieved over the past 25 years. It showed that girls’ enrolment rates in primary and secondary education have almost doubled in low-income countries, and that the gender gap in primary enrolment has been halved. But it also showed that the pace of change is not fast enough. At the present rate, getting every girl into primary school will only happen in 2050. The fact sheet was published on the occasion of the 25th anniversary of the Fourth World Conference on Women (Beijing in 1995), which culminated with the Beijing Declaration and Platform for Action, a key global policy document on gender equality and the most ambitious roadmap for the empowerment of girls and women. “Ignoring girls’ education is akin to ignoring one of the most effective solutions for development,” said the Director-General for UNESCO, Audrey Azoulay. “When girls access quality education, it emboldens them to break the social stereotypes that hold back gender equality. It also gives them the tools to better navigate future life-altering choices on pregnancy, childbirth, and health challenges

claiming millions of children’s lives around the world. We cannot achieve the world we want without the education and empowerment of all girls and women.” The Global Education Monitoring (GEM) Report at UNESCO showed that if all women completed primary education, maternal deaths would be reduced

by two-thirds. If they had a secondary education, child deaths would be cut by half, saving 3 million lives, and there would be two-thirds fewer child marriages. If all girls in sub-Saharan Africa, and in South and West Asia had a secondary education, the number of pregnancies among girls younger than 17 would fall by close to 60%. But slow prog-

ress is preventing girls from reaping these benefits. The new fact sheet showed progress since 1995 in global commitment to girls’ right to an education through international Conventions as drawn from UNESCO’s HerAtlas, and areas where improvements are still needed. In 1995, the Beijing Platform

for Action urged countries to eliminate gender discrimination in education, which is now prohibited by the constitutions of 90 countries. Since the Beijing Platform for Action, the number of States that have ratified the UNESCO Convention against Discrimination in Education (CADE) has increased from 82 to 105. However, this still means almost half have not signed it. By 1995, 150 States had ratified the UN Convention on the Elimination of All Forms of Discrimination against Women, which provides for equal rights for men and women. It has now been ratified by 189 States Parties, but 27 countries signed it with objections to particular articles on child marriage and discrimination policy. A new social media campaign, under #HerEducationOurFuture, is being launched in partnership with multiple education organizations to help advance the commitments made on education in the Beijing Declaration. The campaign calls on girls and teachers to add their voices to call for change by saying what they would want to improve for the next generation. It is launched on International Women’s Day and the Commission for the Status of Women, which will feed inputs into The Generation Equality Forum. This is a global gathering for gender equality, convened by UN Women and co-chaired by France and Mexico, with civil society as a leader and partner.

BUSINESS24 | WEDNESDAY MARCH 11, 2020

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F E AT U R E

Plagued by Trumpism BY JOSEPH E. STIGLITZ

As an educator, I’m always looking for “teachable moments” – current events that illustrate and reinforce the principles on which I’ve been lecturing. And there is nothing like a pandemic to focus attention on what really matters. The COVID-19 crisis is rich in lessons, especially for the United States. One takeaway is that viruses do not carry passports; in fact, they don’t observe national borders – or nationalist rhetoric – at all. In our closely integrated world, a contagious disease originating in one country can and will go global. The spread of diseases is one negative side effect of globalization. Whenever such cross-border crises emerge, they demand a global, cooperative response, as in the case of climate change. Like viruses, greenhouse-gas emissions are wreaking havoc and imposing massive costs on countries around the world through the damage caused by global warming and the associated extreme weather events. No US presidential administration has done more to undermine global cooperation and the role of government than that of Donald Trump. And yet, when we face a crisis like an epidemic or a hurricane, we turn to government, because we know that such events demand collective action. We cannot go it alone, nor can we rely on the private sector. All too often, profit-maximizing firms will see crises as opportunities for price gouging, as is already evident in the rising prices of face masks. Unfortunately, since US President Ronald Reagan’s admin-

istration, the mantra in the US has been that “government is not the solution to our problem, government is the problem.” Taking that nostrum seriously is a dead-end road, but Trump has traveled further down it than any other US political leader in memory. At the center of the US response to the COVID-19 crisis is one of the country’s most venerable scientific institutions, the Centers for Disease Control and Prevention, which has traditionally been staffed with committed, knowledgeable, highly trained professionals. To Trump, the ultimate know-nothing politician, such experts pose a serious problem, because they will contradict him whenever he tries to make up facts to serve his own interests. Faith may help us cope with the deaths caused by an epidemic, but it is no substitute for medical and scientific knowledge. Willpower and prayers were useless in containing the Black Death in the Middle Ages. Fortunately, humanity has made remarkable scientific advances since then. When the COVID-19 strain appeared, scientists were quickly able to analyze it, test for it, trace its mutations, and begin work on a vaccine. While there is still much more to learn about the new coronavirus and its effects on humans, without science, we would be completely at its mercy, and panic would have already ensued. Scientific research requires resources. But most of the biggest scientific advances in recent years have cost peanuts compared to the largesse bestowed

on our richest corporations by Trump and congressional Republicans’ 2017 tax cuts. Indeed, our investments in science also pale in comparison to the latest epidemic’s likely costs to the economy, not to mention lost stock-market value. Nonetheless, as Linda Bilmes of the Harvard Kennedy School points out, the Trump administration has proposed cuts to the CDC’s funding year after year (10% in 2018, 19% in 2019). At the start of this year, Trump, demonstrating the worst timing imaginable, called for a 20% cut in spending on programs to fight emerging infectious and zoonotic diseases (that is, pathogens like coronaviruses, which originate in animals and jump to humans). And in 2018, he eliminated the National Security Council’s global health security and biodefense directorate. Not surprisingly, the administration has proved ill-equipped to deal with the outbreak. Though COVID-19 reached epidemic proportions weeks ago, the US has suffered from insufficient testing capacity (even compared to a much poorer country like South Korea) and inadequate procedures and protocols for handling potentially exposed travelers returning from abroad. This subpar response should serve as yet another reminder that an ounce of prevention is worth a pound of cure. But Trump’s all-purpose panacea for any economic threat is simply to demand more monetary-policy easing and tax cuts (typically for the rich), as if cutting interest rates is all that

By Joseph E. Stiglitz

is needed to generate another stock-market boom. This quack treatment is even less likely to work now than it did in 2017, when the tax cuts created a short-term economic sugar high that had already faded as we entered 2020. With many US firms facing supply-chain disruptions, it is hard to imagine that they would suddenly decide to undertake major investments just because interest rates were cut by 50 basis points (assuming commercial banks even pass on the cuts in the first place). Worse, the epidemic’s full costs to the US may be yet to come, particularly if the virus isn’t contained. In the absence of paid sick leave, many infected workers already struggling to make ends meet will show up to work anyway. And in the absence of adequate health insurance, they will be reluctant to seek tests and treatment, lest they be hit with massive medical bills. The number of vulnerable Americans should not be underestimated. Under Trump,

morbidity and mortality rates are rising, and some 37 million people regularly confront hunger. All these risks will grow if panic ensues. Preventing that requires trust, particularly in those tasked with informing the public and responding to the crisis. But Trump and the Republican Party have been sowing distrust toward government, science, and the media for years, while giving free rein to profit-hungry social-media giants like Facebook, which knowingly allows its platform to be used to spread disinformation. The perverse irony is that the Trump administration’s ham-handed response will undermine trust in government even further. The US should have started preparing for the risks of pandemics and climate change years ago. Only governance based on sound science can protect us from such crises. Now that both threats are bearing down on us, one hopes that there are still enough dedicated bureaucrats and scientists left in the government to protect us from Trump and his incompetent cronies.

Joseph E. Stiglitz, a Nobel laureate in economics, is University Professor at Columbia University and Chief Economist at the Roosevelt Institute. He is the author, most recently, of People, Power, and Profits: Progressive Capitalism for an Age of Discontent. Copyright: Project Syndicate, 2020. www.project-syndicate.org

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MARITIME

Ghana’s pineapple exports hit US$33m Ghana’s exports of pineapples to the world stood at US$33 million at the end of 2018, according to latest figures obtained from the Ghana Exports Promotion Authority (GEPA). According to the Pineapple in France—Competitor Report 2019, published on GEPA’s website, almost 79percent of the total exports of pineapples from Ghana went to the EU market with France absorbing close to 26% of the total exports in 2018. Globally, France imported US$ 123m worth of pineapples, about 7percent of the imports came from Ghana. Largest competitor/supplier to the French market was Costa Rica whose exports represented 43percent of total pineapple imports by France. Other significant suppliers to the French market were Cote D’Ivoire (11percent) and Ecuador (8.5percent). Total exports of Costa Rica reached slightly above US$1bn in 2018. The largest export destination for Costa Rica was United States of America (48.1percent). Other market destinations included the Netherlands (13.5percent), Italy (8.1percent) and Portugal. The exports from Costa Rica to Portugal reached an average growth rate of (+73percent) from 2014 to 2018. Cote D’Ivoire’s exports reached US$12m

in 2018. Largest export destinations for Cote D’Ivoire included France (33.5percent), Belgium (31.3percent), Morocco (12.9percent) and Netherlands (9.9percent). Ecuador exported US$40.6m in 2018. The Andean country ‘s destination markets were Chile (36.1percent) followed by Belgium (17.8percent), Argentina (10.5percent) and Netherlands (9.6percent). Although Chile was the largest importer of Ecuadorian pineapples, the

Netherlands attained the highest growth rate of +101% from 2014 to 2018 and (+181percent) in 2018. At the global level, Costa Rica was the largest supplier of pineapples in the world, with an export value of slightly over US$ 1bn in 2018. Other global suppliers were the Netherlands (US$207m), Philippines (US$192m) and Belgium (US$108m). Globally, Ghana ranked 19th in the exports of Pineapples in 2018.

GSA CEO, 23 others honoured at 5th Women of Excellence Awards The Chief Executive Officer (CEO) of the Ghana Shippers’ Authority (GSA), Ms. Benonita Bismarck and 23 other women have been honoured for their contributions to national development at the fifth Ghana Women of Excellence Awards. The Awards which was organised by Top Brass Ghana in Accra under the theme “Empowering the Ghanaian Woman for national development.” recognised the sterling contributions of the awardees in the sectors of banking, journalism, health, engineering, management, academia among others. Ms. Bismarck was honoured for leading the GSA to champion the interests of shippers in shipping and trade facilitation by sensitising and educating shippers on cost-effective ways of doing their export and import businesses. “As a result, members of trade associations such as the Ghana Union of Traders’ Associations (GUTA), Association of Ghana Industries (AGI) and other shippers across the country have received education on how to avoid the payment of demurrage in the country’s ports, the benefits of local insurance, best export practices and procedures among others.”, an excerpt of the citation read in honour. The CEOs of the Ghana Export

Ms. Benonita Bismarck

Promotion Authority (GEPA) and Vodafone Ghana, Dr. Afua Asabea Asare and Mrs. Patricia Obo-Nai were also honoured for their contributions to export promotion and telecommunications respectively. Other honourees include the Deputy CEO of Exim Bank, Nana Ama Poku (enterprise finance); Second Deputy Governor of the Bank of Ghana, Mrs. Elsie Addo Awadzi (public financial management; Dean of the School of Communications Studies, University of Ghana, Prof. Audrey Gadzekpo (journalism) among others. The event was part of activities organised to commemorate this year’s International Women’s Day under the auspices of the Ministry of Gender, Children and Child Protection.

Ships violating IMO 2020 face serious fines and detention …as port regimes plan rigorous enforcement

Major port state regimes including Paris MoU, Tokyo MoU and the United States Coast Guard (USCG), plan to rigorously enforce the IMO’s Sulphur 2020 from March 1st, 2020. As such, ship owners and operators could face detention of ships should they continue to carry fuel that contains a sulphur content higher than 0.5 percent unless the ship has an exhaust gas cleaning system. “The International Chamber of Shipping reminds shipowners and operators of the impending ban and reiterates the fact that any ships found to be non-compliant face the prospect of detention,” the ICS said. The chamber said that enforcement agencies will no longer have to prove usage, and that showing that vessels without scrubbers have non-compliant fuel aboard will be enough to prove a violation. “Since the introduction of IMO 2020 January 1st, ships have been given a ‘grace period’ while the industry transitions to low-sulphur fuel. As of March 1st, this will no longer be the case. Any ship found in non-compliance faces the prospect of serious fines and even detention,” Guy Platten, Secretary-General ICS said. “The International Chamber of Shipping has been made aware that major port state inspection regimes including the United States Coast Guard (USCG) and the Australian Maritime Safety Authority (AMSA) have made it clear, in no uncertain terms, that detention of ships found to be non-compliant is both possible and legally permissible. The ICS said that based on the information provided by

shipowners, the latter said they were fully compliant and ready for March 1st. To remind, the IMO’s Marine Environment Protection Committee (MEPC 73) adopted the MARPOL amendment to pro-

hibit the carriage of non-compliant fuel oil on board ships in October 2018. The ban relates to fuels intended for combustion purposes, propulsion or operation on board a ship.

Since the entrance into force of the IMO sulphur cap, the shipping industry has reported a relatively smooth transition to compliant fuels, despite major concerns over the availability of compliant fuels and potential

issues with regard to the quality of new blends. However, it is yet pretty early to draw any conclusive analysis as the transition is yet in its early days. worldmaritimenews.com

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NEWS

GSA moves to ensure high standards in gold Medical Credit Fund selected on the ImpactAssets 50 industry Professor Alex Dodoo, the Director General of the Ghana Standards Authority (GSA), has stressed the importance of standards in ensuring certification and securing the confidence of dealers in the gold industry. He said the GSA has gazetted relevant standards to ensure that certification of gold could take place, pending the enactment of legislation of hallmarking of Gold. Professor Dodoo, who was speaking at the ongoing Ghana Gold Expo 2020 being held in the Western Region, said the GSA has also established a gold laboratory to provide end-toend testing of gold and gold products as a way of value addition in the industry. The GSA certified the first gold bar produced by the Gold Coast Refinery in November 2018. Again, the GSA provides assaying, hallmarking and certification services of Gold-bars which comes with the GSA Mark of Conformity and a serial number for traceability. Prof Dodoo said with Ghana hosting the AfCFTA Secretariat it was necessary to make maximum use of the great opportunity by adding value to our products as well as entering new regional and international markets. “The GSA is thereby seeking the support of industry players to make use of their gold assaying and hallmarking lab-

Professor Alex Dodoo

oratories,” he said. He said government is ready to create an enabling environment for players in the mining industry, adding that the governing NPP’s Manifesto made mention of value addition to natural resources so this programme is directly in line with the nation’s agenda. “The issue of Ghana Beyond Aid is a much clearer vision each passing day as we are always met with opportunities to expand our businesses and to widen our market reach. Individuals and local businesses are hereby being encouraged to add value to their gold ornaments before export,” he added. The maiden Ghana Gold Expo, which is being held on March 8 to 10 in Takoradi in the Western Region. Organised in collabo-

ration with “Aurum Monaco” a France based Gold Refinery, the Expo seeks to promote zero mercury use in gold production and the promotion of best standards practice in the industry. It will also discuss value addition in the gold industry with the view of ensuring that Ghana obtains maximum revenue from its gold reserves whilst creating a world class jewellery industry in the country. The Ghana Gold Expo is to also create a synergy among stakeholders and build proper structures in gold mining as one of the proponents of gold mining includes the contribution to substantial economic benefits to the mining communities as well as increasing incomes and reducing poverty levels among the citizenry. GNA

NBSSI partners int’l brands to push women businesses

By Eugene Davis

The National Board for Small Scale Industries (NBSSI) have set their sights on promoting micro small and medium enterprises (msmes) managed by women in a bid to develop them into global brands, the company’s CEO, Kosi Yankey-Ayeh, has said. Already, NBSSI and Mastercard Foundation have entered into a GH¢78 million three-year partnership to increase employment opportunities for young people in the Ghana. Others brands including WIDU GIZ, Access Bank, JICA, and Food and Drugs Authority have all partnered the NBSSI with the aim of growing indigenous businesses. Speaking at an SME Business Clinic and Health Screening for over 400 women Entrepreneurs at Makola in Accra to mark the International Women’s Day, the CEO indicated the rationale for

the event. “Today, we decided to come to the market and bring it to where business really began. We are here with them today to engage them, to show them the importance of mobilization, how do they grow their business, how do they ensure that they use the right tools and in doing all that how do they ensure that their health is also good? So we have a health clinic, SME clinic –we go into the market provide them with support and ensure that they have access to markets and finance, good standards, good operating procedures to support them, because that is the economic foundation. “These are the ones to become the micro small and medium enterprises--so we are helping them especially those in the agric business sector of things to support them and bring them the needed knowledge so they can grow.”

According to Mrs. Yankey-Ayeh, in the next couple of weeks “we will be announcing lots of partnerships that will be coming on board”. The essence and support of the partnership is to see how best support can be given to those in the msme sector. Where it was not accessible, we will make it accessible so that it is not a regulator, policeman coming to say you have not done your work, but how best do we help you and in doing all that the underlying factor is how do we grow the business, how do we set-up global business, she noted. On taking advantage of the Africa Continental Free Trade Area (AfCFTA), she maintained that, there is the plan to ensure that all stakeholders are ready for it, especially women businesses. Among some of the major activities the NBSSI is looking to embark on is the setting up of shops to showcase Made in Ghana products. “We will be actually setting up shops with the businesses to showcase Made in Ghana products and we will also look at how to get people to go into the shops and buy some of the products. So it is not just manufacturing, but how do you get it to the end-user. The Deputy Greater Accra Regional Minister, Elizabeth Sackey, urged women to be industrious and strive for excellence in their businesses. She maintained that it is the only way they can grow their businesses and compete at the highest level. The occasion was used to celebrate Ghanaian women entrepreneurs.

ImpactAssets has announced Medical Credit Fund (MCF) to be among the recognized impact investment firms on this year’s ImpactAssets 50 (IA 50) list. According to Medical Credit Fund (MCF), the company is honored to be among the recognized impact investment firms on this year’s ImpactAssets 50 (IA 50) list. IA 50 includes a range of experienced funds across the globe, spanning diverse issue areas and investments, with demonstrated and compelling social and environmental impact. For investors, IA 50 provides a useful resource to evaluate sustainable and responsible investing options. It is the 6th consecutive time MCF has been included in the list — a continuing recognition for the organization’s effort to strengthen health SMEs in Africa. To date, MCF has disbursed over 660 loans amounting to USD 13.6 million to health entrepreneurs in Ghana, allowing them to grow their businesses and improve the quality of care provided. With a 93% repayment rate, the organization demonstrates that the underserved health sector is bankable. This has been achieved together with our partner fi-

nancial institutions – Fidelity Bank Ghana, Republic Bank Ghana and OmniBSIC Bank Ghana. To scale and further develop their fastest growing category, the digital loans, MCF is currently raising funds and invites investors to participate. Arjan Poels, Managing Director of MCF: “Our selection on the ImpactAssets 50 2020 motivates us to further fill the financing gap for African health entrepreneurs and provide an attractive, low-risk opportunity for investors to combine returns with high social impact” “MCF Ghana will leverage this unique opportunity to continue offering all providers in the health value-chain, diversified and innovative financial products, that meet their utmost needs and enable them provide the highest level of quality healthcare to all clients that patronize their services,” Derrick Ewudzie-Odoom, Country Manager, MCF Ghana. About PharmAccess PharmAccess is dedicated to improving access to quality health care for people in sub-Saharan Africa. It mobilizes public and private resources for the benefit of doctors and patients through health insurance, digital innovations, loans to doctors (Medical Credit Fund), clinical standards (SafeCare) and impact research.

Golden Star announces policy on inclusion and diversity Golden Star Resources Ltd. has announced its Policy on Inclusion and Diversity to mark International Women’s Day and the 25th anniversary of the adoption of the Beijing Declaration and Platform for Action (1995), considered the most progressive blueprint ever for advancing women’s rights. The Policy has been developed through engagement with employees and the specialist human resources and community affairs teams. The Policy has been ratified by the Golden Star Board of Directors and endorsed by the Company’s Management Team. Andrew Wray, Chief Executive Officer of Golden Star said: “The Policy on Inclusion and Diversity furthers our commitment to live by our values: collaboration, caring, honesty, respect and fairness. This framework will be applied across our operations in Ghana and the Company’s head office in London. At the Wassa mine, we recently signed a Memorandum of Understanding with our host communities, this process incorporated a commitment to enhance the engagement of women and youth. “For some time, the Company has been focussed on creating employment opportunities for Ghanaian nationals and more specifically the host communities from around the mines. These

initiatives have successfully resulted in a 98% Ghanaian work force. We are now looking to extend these initiatives to ensure our work force reflects the diversity of our host communities. The insights shared by the diverse team that has contributed to this policy will be fundamental to our success and this process has established relationships that we hope to continue to grow in the future.” New strategic endeavours by the company to promote inclusion and diversity include: A target to have 20% female representation across its business by the end of 2025--a significant step forward from the current 4% female representation; A partnership with Women In Mining UK to provide summer internships at Golden Star; The development of an Inclusion and Diversity plan that will include targets to enhance involvement of women in work placements, internships and graduate opportunities; Programs to gain recognition as an employer of choice; A partnership with Golden Star Oil Palm Plantation (GSOPP) and Solidaridad West Africa to enhance opportunities for women and youth involved in sustainable palm oil production; and a partnership with Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ): Employment and Skills Development (E4D) in Africa Program for empowerment of women and youth in Ghana through skills and enterprise development.

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F E AT U R E

Epidemics and Economic Policy

By Kaushik Basu

A far-reaching global crisis demands a comprehensive global response. A multilateral organization such as the World Bank or the International Monetary Fund should urgently establish a task force comprising, say, 20 economists with diverse specialties, as well as experts in health and geopolitics. The number of daily new cases of the COVID-19 coronavirus is finally declining in China. But the number is increasing in the rest of the world, from South Korea to Iran to Italy. However, the epidemic unfolds – even if it is soon brought under control globally – it is likely to do much more economic damage than policymakers seem to realize. In the wake of the 2008 global financial crisis, central banks led the response. As the COVID-19 outbreak disrupts value chains and raises fears among investors, some seem to think that they can do so again. Already, the US Federal Reserve has cut interest rates by half a percentage point – its largest single cut in over a decade. But the Fed’s move, without other supporting policies, seemed only to confuse markets further; just minutes after the cut, their downward slide continued. Such stock-market gyrations say little about the actual state of the economy – that is, the world of goods and services. Rather, they reflect beliefs: not just what you and I believe, but what you and I believe about what you and I believe. In this sense, stock-market losses often become anxiety-fueled self-ful-

filling prophecies. A far-reaching global crisis demands a comprehensive global response. I do not know exactly what such a response should look like – at this point, no one does. But we can find out. To that end, a multilateral organization such as the World Bank or the International Monetary Fund should urgently establish a task force comprising, say, 20 economists with diverse specialties, as well as experts in health and geopolitics. This “C20” would be charged with analyzing the crisis and designing a coordinated global policy response on a tight deadline. It would need to submit its first report – with a list of initial actions to be taken by governments and, possibly, responsible private corporations – within a month. Each subsequent month, it would provide an updated agenda. Over time, effective policies would take root, and the group could be disbanded, possibly as soon as a year after its formation. Nothing the C20 did would prevent the initial direct damage to some sectors, such as tourism. And that damage is likely to be substantial. For example, the International Air Transport Association estimates that the global airline sector could lose $113 billion in sales if the virus continues to spread. Likewise, major hotel brands are reporting declining business. Hilton, which closed 150 hotels in China, expects to lose $25-50 million in full-year adjusted earnings (before interest, taxes, depreciation, and amortization), if the outbreak and recovery each last 3-6 months.

Tourism expenditure by the Chinese alone – which amounted to $277 billion in 2018 – is, in my view, likely to decline by more than half this year. But the C20 might be able to minimize or even offset these early shocks’ secondary and tertiary multiplier effects, which would hit a wide range of sectors, disrupting employment and prices. For example, if demand declined in all sectors, governments could employ broad monetary and fiscal policy to revive it. Central banks could cut policy rates, while governments carried out a coordinated fiscal expansion, much like during the Great Recession. Yet, this time around, such an approach would prove inadequate. After all, the COVID-19 crisis is different from the 2008 crisis in a crucial way: even as demand slumps in some sectors, it is spiking in others, pushing up prices and excluding regular buyers. Health services is the most obvious example. Reports indicate that, with already-limited resources diverted to COVID-19, many in China are struggling to get their usual health-care needs met. In this context, policy interventions will have to be nuanced and sector-specific – boosting consumer-purchasing power in some sectors and curtailing demand in others. There is another problem that is not being adequately recognized. A large number of contracts will be broken as a result of the coronavirus outbreak, which some will claim amounts to force majeure – a provision that exempts parties from their obligations. According to the

China Council for the Promotion of International Trade, China has issued nearly 5,000 force majeure certificates, covering contracts worth CN¥373.7 billion ($53.8 billion). But plenty of parties to the broken contracts will contest claims of force majeure. This will place liability laws (and courts) under strain and raise tensions in economic transactions. Simply put, the COVID-19 epidemic’s economic impact is likely to be highly complex and widely varied. Addressing them effectively will require policymakers – and, ideally, a C20 – to take a big-picture, inter-sectoral view that accounts not just for outcomes, but also for the multifarious and overlapping dynamics driving them. To this end, policymakers would do well to recall past studies of inter-sectoral connections, which have their roots in the path-breaking work of Léon Walras in 1874, and the research of the Nobel laureate Kenneth Arrow and Gérard Debreu in the 1950s. In particular, they should review the Nobel laureate economist Amartya Sen’s “entitlement approach,” which explains why famines can occur even when food supplies are plentiful. A shock is transmitted to the food sector from another sector through complex demand and supply channels, causing shifts in food prices and wages, and effectively cutting off a section of the population’s ability to buy adequate food. This is depicted in A Distant Thunder, Satyajit Ray’s classic film about the 1943 Bengal famine, which captures the tragic phenomenon of hunger and destitution amidst plen-

tiful food supply. Past efforts to track and operationalize these inter-sectoral transmission channels – such as through input-output analysis – should also be considered, though none can be applied directly to the current context. Instead, such approaches should guide the efforts of research teams, working with the C20, to map how COVID-19’s first-round shocks will most likely course through the economy. Only with such a map can policymakers develop the sector-specific interventions that are so essential to cope with the coronavirus. With the world economy already beset by risk, there is no time to waste.

Kaushik Basu

Kaushik Basu, former Chief Economist of the World Bank and former Chief Economic Adviser to the Government of India, is Professor of Economics at Cornell University and Nonresident Senior Fellow at the Brookings Institution.

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R E A L E S TAT E

What’s fueling the rapid hotel growth in West Africa

Today, Africa is seen as one of the most promising regions for hotel developers. Aside from small chains and independents, four global hotel groups dominate signings and openings on the continent. Over the last four rolling quarters, as of September 2019, Accor, Hilton, Marriott International and Radisson Hotel Group have opened 2,800 rooms and signed deals for 6,600 rooms. Across Africa, hotel development remains important in most advanced economies, such as Morocco and South Africa; and projects are multiplying in East Africa, especially in Ethiopia, Kenya, Tanzania and Uganda. In West Africa, Nigeria is back on the development scene thanks to emerging regional destinations beyond Abuja and Lagos. Francophone Africa is also moving fast. The Ministry of Tourism of Ivory Coast has launched an ambitious national plan for tourism development, Sublime Cote d’Ivoire, and already announced over US$1bn investment in the sector. Senegal is the other regional star, with local programmes such as Diamnadio, Lac Rose near Dakar and Pointe Sarene. Other countries showing active hotel development include Benin, Cameroon, Guinea, Niger, and Togo. Now, in an interview, Philippe Doizelet, Managing Partner, Hotels, Horwath HTL, West Africa’s leading hospitality consultant, in conjunction with the Forum de l’Investissement Hôtelier Africain (FIHA), the premier hotel investment conference in Francophone Africa, has identified four fundamental factors which are fuelling an increasing flow of investment into the hospitality sector in West Africa. They are, in alphabetical order: Air

connectivity, Better economic growth, Currency and Demographics. In the past few years, additional flight connections have transformed travel to and from West Africa, which, in the words of Philippe Doizelet, Managing Partner, Hotels, Horwath HTL, has been a game changer. He said: “It used to be that the main hubs for flying between West African countries were Paris and Casablanca. However, thanks to the rapid growth of Ethiopian Airlines and other carriers, such as Emirates, Kenya Airways and Turkish, the situation has changed; and new routes are offered to travellers. For example, it is now possible to fly direct from New York to Abidjan, where the African Development Bank is located, and to Lomé, where the Central Bank of West African States (BOAD) is situated… and with increased travel comes increased commerce and demand for accommodation.” According to the UNWTO, international tourist arrivals in Africa grew by 7% in 2018, one of the fastest growth rates in the world together with East Asia and the Pacific. The flight data analyst, ForwardKeys, recently confirmed that trend continuing. In 2019, African aviation experienced 7.5% growth and it is the stand-out growth market for Q1 2020. As at 1st January, international outbound bookings were ahead 12.5%, 10.0% to other African countries and ahead 13.5% to the rest of the world. As a destination, Africa is also set to do well, as bookings from other continents are currently ahead by 12.9%. The second factor is the superior economic growth of many West African countries, which are expanding substantially faster than many of the world’s most advanced economies. Ac-

cording to World Bank data for 2018, several, such as Benin, Burkina Faso, Gambia, Ghana, Guinea, Ivory Coast and Senegal are growing at 6% per annum or better, more than double the world average, 3%. That is a potent attraction to international investors. However, that’s not all; as prosperity grows domestically, so too does the local financial services industry. It then looks to invest client monies; and a good proportion of that capital gravitates towards real estate projects and, in turn, new domestic infrastructure. As those projects come to fruition, more prosperity is generated and so a virtuous cycle is stimulated, which acts as a catalyst for further economic development. Currency is the third factor. Later this year, the CFA franc, which is pegged to the euro, is planned to be dropped and 15 countries in West Africa (ECOWAS) will adopt the Eco, a new, free-floating, common currency, designed to reduce the cost of doing business between them and so increase trade. However, whilst there is great enthusiasm for the Eco, it is somewhat qualified because the economies of participating countries are at different stages of development and governments may find it difficult to adhere to agreed guidelines for managing their economies. The fourth factor is demographics. The population is young and the fastest growing of any major world region. According to Philippe Doizelet, it is also characterised by a hunger to learn and confidence about the future. “People are seeing their standards of living improve and they are keen to seize opportunities. We are seeing that mindset reflected throughout the hospitality industry; it’s incredibly refreshing and it’s attracting

business.” He said. However, the picture is not all rosy. Horwath HTL also identifies four factors which threaten economic progress; they are security issues, political agenda, governance and increasing public debt. Although Africa today experiences much less conflict than it did three or four decades ago, when most African countries experienced war, some parts of the Sahel are still subject to security threats. On the political front, although democracy is continuing to spread, it is not yet the general rule everywhere, especially when come the times of major elections. Third is governance. Philippe Doizelet says: “When people are poor and the state is weak, there will be corruption, but I’m not convinced that it is much worse than in other parts of the world.” The fourth concern is rising public debt, much of which has been incurred as long-term loans from the Chinese to build infrastructure. That said, the debt to GDP ratio of many West African states is still less than many highly developed nations. Matthew Weihs, Managing Director, Bench Events, which organises FIHA, concluded: “Africa is not the easiest place to do business, but it is an incredibly exciting place because the opportunities substantially outweigh the threats. Every time we organise a hotel investment forum, I see more hotel openings being announced and I meet new players keen to enter the market. The FIHA delegates are literally constructing the future of Africa in front of our eyes and anyone who attends the conference has the opportunity to join in.” FIHA takes place at the Sofitel Abidjan Hotel Ivoire in Abidjan, March 23-25. Horwath HTL is the world’s largest and most experienced

hospitality consulting brand, with 45 offices around the globe. Founded in in New York in 1915, it has been providing impartial, specialist advice to its clients for over 100 years and is recognised as the market leader in all areas of hotel, tourism and leisure consulting. As the founders and original authors of the Uniform System of Accounts, the industry standard for hospitality accounting, Horwath HTL wrote the book on how the industry measures financial performance in hotels. Forum de l’Investissement Hôtelier Africain (FIHA) is the premier hotel investment conference in Francophone Africa, attracting many prominent international hotel owners, investors, financiers, management companies and their advisers. It takes place at the Sofitel Abidjan Hotel Ivoire on March 23-25. It is organised by Bench Events which has an established record of delivering high-level networking and thought leadership conferences for hospitality investment and aviation in Europe, the Middle East, Africa, Asia and Latin America. ‘Creating an impact’ is the core focus of Bench Events, as the company enables growth by facilitating deal opportunities. Sponsors of FIHA are: Host Partner: Accor; Host Venue: Sofitel Abidjan Hotel Ivoire; Gold Sponsors: Amandla Capital, Insignia, Marriott International and STR; Silver Sponsors: SB Architects and STM Electromech; Bronze Sponsors: IT Hospitality Futureproof Solutions and work4stars; Roundtable Sponsor: In Extenso; Research Partner: Horwath HTL; Exhibitor: Agora.

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Ghana month is here, road accident on the increase…the impact could be devastating on domestic tourism

By Philip Gebu

Ghana month is here and we just finished celebrating our Independence Day anniversary. Instead of talking about the beauty that comes with the Ghana month celebrations and how successful the Independence Day went, media is engulfed with reports of another road accident on the Kintampo -Tamale road. This road is gaining notoriety for big number accidents. Not too long ago 71 people die on that road. That accident gained international coverage. This is how BBC reported it - Ghana bus crash near Kintampo kills at least 71. The number of people killed when a bus crashed into a truck in northern Ghana has risen to 71, medical officials say. The Metro Mass Transit coach reportedly collided head-on with a cargo truck carrying tomatoes near the town of Kintampo on Wednesday evening. Regional police chief Maxwell Atingane told Reuters news agency that many passengers died at the scene. Investigators said the bus was overloaded, carrying more than 70 passengers rather than a maximum of 63. The sad aspect is that, many of those involved in this accident are burnt beyond recognition. It is reported that more than 30 people are burnt beyond recognition and the families of the victims are finding it difficult to identify the bodies. The Kintampo Divisional crime officer DSP Prosper Gbagbo gave some details on the accident. “We got a call this morning about 3:am that there was an accident on the Kintampo-Bupe Highway. We rushed to the place and we found a grand bird bus, we can’t get the number because the plate is burnt and another sprinter bus. They collided and that led to the fire which has claimed several lives”. This accident is happening at a time when we are still having a

hangover the Dompoase crash which claimed 35 lives in January 2020. Statistics show that four people die daily on Ghanaian roads due to road accident. Estimates show that Ghana loses over 230 million dollars yearly due to road accidents with more than 1600 deaths. According to statistics released recently by the Motor Traffic and Transport Department (MMTD) of the Ghana Police Service, road accidents are on the rise. There was a 3.3% increase in the number of commuters killed in road accidents between January and June 2019 compared to the same period in 2018. This is corroborated with a WHO-UN World report on road traffic injury prevention that says; without increased efforts and new initiatives, the total number of road traffic deaths worldwide and injuries is forecast to rise by some 65% between 2000 and 2020 , and in low-income and middle-income countries deaths are expected to increase by as much as 80%. The majority of such deaths are currently among “vulnerable road users” – and it seems we may end up exceeding this forecasted info considering the carnage on our road so far this year. We can at least rejoice that, government novelty of celebrating the Independence Day outside of Accra did not come with any reported accidents. According to a daily graphic story, Ghana has been ranked a very high-risk country in terms of road safety in a new interactive ‘Travel Risk Map’ for 2018. The map, by International SOS and Control Risks, shows that much of Africa also poses a very high risk for travelers’ health., along with Syria, Iraq, Afghanistan and Guyana. The Interactive ‘Travel Risk Map’ reveals which countries are riskiest for road safety, security and medical matters. The travel security risk ratings are determined

based on the robustness of the transport infrastructure and other factor. The US embassy website posted similar information about Ghana on it travel advice section to its citizens. It read as follows; on road safety and accidents, they maintain Ghana’s main roads are generally paved and well maintained. However, some side roads within major cities and many roads outside of major cities are in poor condition. (Many accidents occur on the highway from Accra to Cape Coast. Travel in darkness, particularly outside the major cities, is extremely hazardous due to poor street lighting and the unpredictable behavior of pedestrians, bicyclists, and farm animals. Aggressive drivers, poorly maintained vehicles, and overloaded vehicles pose serious threats to road safety. Another hazard is pedestrians who intentionally bump vehicles and pretend to be hit. They then attempt to extort money from the vehicle’s occupants. Scams of this nature most commonly occur in congested urban areas. The WHO-UN report states that Road traffic injuries are a growing public health issue, disproportionately affecting vulnerable groups of road users, including the poor. More than half the people killed in traffic crashes are young adults aged between 15 and 44 years – often the breadwinners in a family. Furthermore, road traffic injuries cost low-income and middle-income countries between 1% and 2% of their gross national product – more than the total development aid received by these countries. But road traffic crashes and injuries are preventable. In high-income countries, an established set of interventions have contributed to significant reductions in the incidence and impact of road traffic injuries. These include the enforcement of legislation to

control speed and alcohol consumption, mandating the use of seat-belts and crash helmets, and the safer design and use of roads and vehicles. Reduction in road traffic injuries can contribute to the attainment of the Millennium Development Goals that aim to halve extreme poverty and significantly reduce child mortality. Road traffic injury prevention must be incorporated into a broad range of activities, such as the development and management of road infrastructure, the provision of safer vehicles, law enforcement, mobility planning, the provision of health and hospital services, child welfare services, and urban and environmental planning. The health sector is an important partner in this process. Its roles are to strengthen the evidence base, provide appropriate pre-hospital and hospital care and rehabilitation, conduct advocacy, and contribute to the implementation and evaluation of interventions. The time to act is now. Road safety is no accident. It requires strong political will and concerted, sustained efforts across a range of sectors. Acting now will save lives. Experience shows that with political will and a commitment to achieve effective safety management, a rapid and significant reduction in road injuries can be achieved. The efforts required, as will be outlined in this report, include (25, 34):— a scientific approach to the topic;— the provision, careful analysis and interpretation of good data;— the setting-up of targets and plans;— the creation of national and regional research capacity;— institutional cooperation across sectors. The Wear Ghana Project is a campaign that seeks to encourage Ghanaians to wear made in Ghana clothes and use other fashion accessories that are locally produced. The campaign runs throughout

the year but reaches its peak in March with a series of activities such as seminars, symposiums, exhibitions, fashion shows, production of a fashion magazine and an awards night to honour fashion industry players, Ghanaians and institutions whose activities have promoted the fashion industry in Ghana. This is what we should be promoting and encourage our country men and women to patronize them, however here we are talking about something else. Nevertheless, the campaign must go on. If you are proud to be a Ghanaian, wearing of African clothes is a must. This will support the local industry. In conclusion, if these accidents are not prevented and they keep re-occurring yearly, my fears are that tourism especially domestic tourism may be affected. The earlier the political will is enforced to deal with this menace the better it will be for us all.

Philip Gebu Philip Gebu is a Tourism Lecturer. He is the C.E.O of FoReal Destinations Ltd, a Tourism Destinations Management and Marketing Company based in Ghana and with partners in many other countries. Please contact Philip with your comments and suggestions. Write to forealdestinations@ gmail.com / info@forealdestinations. com. Visit our website at www.forealdestinations.com or call or WhatsApp +233(0)244295901/0264295901.Visit our social media sites Facebook, Twitter and Instagram: FoReal Destinations

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Guinea-Bissau and IFAD partner to build farmers’ resilience to climate change The International Fund for Agricultural Development (IFAD) has announced support for a new project in Guinea-Bissau to reduce poverty, increase productivity and incomes. The support is also to improve food and nutrition security and build the resilience of at least 287,000 small-scale farmers in the face of climate change. Guinea-Bissau is one of the world’s least developed countries. Its poverty rate is very high, particularly in rural areas where up to 80 per cent of people live in extreme poverty, mostly working in agriculture. They are at particular risk as rising temperatures and sea levels and climate disturbances are affecting agricultural production. To help the country to address these issues, the financing agreement for the Agricultural Diversification, Integrated Markets, Nutrition and Climate Resilience Project (REDE) was signed by correspondence by Gilbert F. Houngbo, President of IFAD, and Geraldo João Martins, Minister of Finance of the Republic of Guinea-Bissau. This US$65.7 million project will promote crop diversification to reduce the country’s dependence on a single crop production - rice or cashew.

As the project areas have an arid Sahelian climate, climate change mitigation and adaption measures will be introduced, particularly by reducing brush fires and forest clearing, better lowland water management, by increasing organic content of cultivated soils and protecting and generating forests on plateau land. “IFAD is committed to work with the Government of Guinea-Bissau for in-

clusive rural transformation of the country where the persons with disabilities and returned migrants are not problems for their communities but are part of the solution,” said Gianluca Capaldo, IFAD Country Director for Guinea-Bissau. “REDE will work to ensure that no one is left behind”. The project will promote the economic inclusion of smallscale farmers in adding value to

agricultural production through processing. Rural infrastructure will be put in place to support market-oriented production, and to enable efficient delivery of surplus production from small farms to markets, allowing farmers to sell more in national and sub-regional markets and improve their livelihoods. REDE will build the capacity of small-scale farmers - not only in production, but also in storing

and processing perishable products. It will promote literacy activities for women and vocational training for young people. project funding includes an $11.8 million loan and $4.3 million grant from IFAD through its Special Programme for Countries with Fragile Situations. In addition, the Government of Guinea-Bissau is providing $7.6 million, with a further $4.9 million contributed by beneficiaries themselves and significant cofinancing from other development partners. REDE will be implemented in four regions – Bafatà, Cacheu, Gabú and Oio and will develop 14,000 ha of watersheds and 3,500 ha of lowland for cultivation. In addition, 175 kilometres of roads, 3 existing semi-wholesale markets, 5 weekly markets and 2 collection centres will be rehabilitated. It will target women and young people, including persons with disabilities, and migrants who have returned to the country. Since 1983, IFAD has invested more than $45.3 million in five rural development programmes and projects in Guinea-Bissau worth a total of almost $115.4 million. These interventions have directly benefited almost 182,000 rural families.

SA: Vodacom agrees to cut mobile data prices Vodacom has reached an agreement with the country’s competition watchdog to reduce its mobile data prices. One of the initiatives SA’s largest mobile operator will institute is cutting the cost of its 1GB monthly bundle from R149 to “no more than” R99, a 34% reduction, from April 1 2020. Vodacom group CEO Shameel Joosub said the operator will introduce a range of initiatives that will result in R2.7bn in additional savings for customers. “This forms part of a broader Vodacom group programme to create a social contract with its stakeholders that will address pressing societal challenges in each of the markets in which it operates,” he said. Vodacom’s share price was up 0.79% to R108.56 late on Tuesday morning. The agreement, which was announced at a briefing in Pretoria on Tuesday, is likely to be seen as a victory for consumers, whose social media and street campaign against expensive data gained traction in 2017 when the Competition Commission set up an inquiry into the sector. After two years of investigation, the Competition Commission released its data market inquiry report in December 2019. The commission’s final report said MTN and Vodacom had to independently reach an agreement with the regulator on substantially reducing data prices within two months of the release of the report. The commission said there was scope for price reductions of 30%-50%. Commissioner Tembinkosi Bonakele said at the briefing

that Vodacom will extend the number of zero-rated websites and services that it supports, including more than 20 specific government-related sites around services such as education and health care. He also said certain parts of their agreement with Vodacom will be kept confidential to protect the operator’s competitive position in the market The competition watchdog gave the two dominant mobile phone operators two months to slash internet connectivity prices or face prosecution. This deadline was subsequently extended to the start of March. Vodacom annual data revenue of R24bn accounts for 43% of its SA sales, according to its latest financial results. For MTN and Vodacom, which control about 70% of the SA mobile industry, it comes as a blow to one of their biggest profit sources as data sales constitute an important source of their revenue in SA. The findings have also turned the spotlight on the government’s failure to auction spectrum — a radio frequency that allows mobile phone operators to send voice and data over the airwaves — which mobile operators have long argued is vital to bring the cost of internet data down. At the end of 2019, the Independent Communications Authority of SA (Icasa), the industry regulator, said that it would start auctioning spectrum for both 5G and 4G bands in the second half of 2020. All eyes are now on MTN and what agreement it has come to with the commission. businesslive.co.za

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NEWS

Passengers can change and reissue bookings with no penalties—Emirates Emirates is providing customers more flexibility, choice and value through its newly introduced waiver policy for all booked tickets issued on or from today, 7 March until 31 March 2020, allowing customers across its network the choice of changing their travel dates without change and reissuance fees. The move provides Emirates’ customers with peace of mind should they decide to change their travel plans due to the evolving COVID-19 situation. Customers can change their booking to any date for travel within an 11-month date range in the same booking class without change penalties. Difference in fare, if applicable applies. The policy covers all existing destinations across the Emirates network. Adnan Kazim, Chief Commercial Officer, Emirates Airline, said: “We want our customers to feel fully supported, comfortable and confident when making travel plans, while offering them the best fares, without incurring change fees should they decide to delay or adjust dates. The situation remains dynamic and we will continue to look at ways to provide flexibility, con-

venience and peace of mind for our customers.” Emirates Skywards will also be providing more flexibility to its members who have been impacted by the outbreak of the coronavirus through imposed travel restrictions and flight reductions. Skywards Platinum,

Gold and Silver members can maintain their current status by fulfilling 80% of their tier travel requirements between 31 March and 30 June 2020. In addition, Skywards members booked to travel between 1 March and 30 June 2020 will be able to benefit from an additional 20% bonus

Tier Miles. For additional peace of mind, Emirates is also taking its aircraft cleaning process to the next level through additional precautionary measures of implementing enhanced disinfecting procedures after flights from destinations most affected by

COVID-19. If the airline is alerted to any suspect or confirmed cases of infectious diseases, teams will be immediately deployed for a deeper cleaning to thoroughly disinfect all cabins of that aircraft with stronger, approved chemicals. Across all its aircraft, Emirates utilises HEPA filters, which are proven to remove more than 99% of viruses in the cabin environment. If there is a suspected case onboard, Emirates will go a step further to replace all the HEPA filters on the aircraft. Customers are advised that fare differences or applicable taxes may apply if they wish to change their bookings to a different fare class. Current refund and rebooking conditions for tickets issued before 5 March still apply. Customers impacted due to cancellations of flights impacted by the COVID-19 virus are advised to check emirates. com for rebooking or rerouting options. Customers who wish to change their travel arrangements after making bookings between 7 March and 31 March can visit their travel agent or contact the Emirates call centre at +233 302213131.

StanChart introduces online OMD named Global Media Agency of the mobile platform to boost trade Year 2020 by Adweek OMD Worldwide, an Omni- - for our clients all around the in bonds, T-Bills com Media Group Agency, world.”

Investors looking to buy and trade in local currency bonds and treasury bills can now do so via mobile as Standard Chartered (SC) Bank has introduced an Online Fixed Income (OFI) platform. The OFI on SC Mobile gives bank’s clients the opportunity to buy and sell government issued bonds at any time, allows clients to place orders in a fast, simple and convenient manner. Mrs. Setor Quashigah, the Head of Wealth Management of the Bank, speaking at the launch of the platform, said the Bank would continue to offer an end to end digital solution to clients to aid them in their investment decisions. It said the Fixed Income trading platform on the SC Mobile app included simplified Client Investment Profiling, sale and purchase of treasury bills at any given point in time. “Additionally, clients can view the list of securities available to be traded each day as well as de-

tails of securities such as indicative price, tenor, maturity date, coupon percentage and coupon frequency to mention a few,” it said. The app also contains transaction details and historical transactions as well as an educational page which allows clients to learn more about trading in bonds. In 2019 Standard Chartered Bank made significant progress in the acceleration of its digital agenda aimed at transforming its Retail Banking Business. “This digital banking app features a range of innovations and functionality improvements to offer a more seamless experience for our clients such as end to end digital client onboarding, up to 70 client service requests, a fully enhanced payment proposition including Mobile Money,” the statement said. The SC Mobile Banking App can be downloaded via Google Play Store or App Store.

has been named Global Media Agency of the Year 2020 for the second consecutive year by Adweek, a leading advertising industry publication globally. The accolade marks the sixth time that OMD has been named Adweek Global Media Agency of the year since 2010. Profiling the agency in its February 24th issue, Adweek credits OMD for sustaining the stunning 2018 comeback globally that earned it the Global Media Agency of the Year title last year; and for leveraging that momentum to support the continuing investments in talent, technology and process that would make winning a repeatable process in 2019, and into the new decade. In the COMvergence Media Agency New Business Barometer report released on February 25, 2020, OMD globally tops the ranking with $2,027M in net new business values (As defined by the standard industry calculation i.e. wins + retentions – losses). The COMvergence New Business Barometer completes a trifecta of first place net new business rankings for OMD in 2019, following reports from global consultancy R3 and media agency research company RECMA published earlier this year. Commenting on the collective affirmation of OMD’s industry leading performance in 2019, OMD Worldwide CEO Florian Adamski said, “OMD is starting the new decade with greater-than-ever capacity and commitment to delivering better decisions, better ideas and better outcomes – faster

Commenting on the ‘constant’ rigour for Talent, Technology and Process, mediaReach OMD Ghana Managing Director Stephen Onaivi, “OMD Design is our unique and strategic differentiator that is relevant to us in Ghana. It fully came to life late last year; our staff has been fully trained to deliver better decisions, faster to our clients using OMD Design. OMD Design is a process which is dynamic and fully integrated to the capabilities that sit within Omni, our people-based precision marketing and insights platform. OMD Design guides users through every stage of the insight and planning process, democratizing access to Omni’s potential across the network.” OMD Worldwide is the world’s largest media network with more than 13,000 people working in over 100 countries. As the world grows with opportunities, the key is reacting to them, by making Better decisions, faster - combining innovation, creativity, empathy and evidence to deliver better business outcomes. Named Adweek’s Global Media Agency of the Year 2019 & 2020, OMD, an Omnicom Media Group agency, is currently ranked the world’s most effective media agency network in the Effie Effectiveness Index. Omnicom Media Group is the media services division of Omnicom Group, Inc. (NYSE: OMC), the leading global advertising, marketing and corporate communications company, providing services to over 5,000 clients in more than 100 countries. mediaReach OMD in Ghana is part of the OMD footprints in West & Central Africa and unar-

guably the No. 1 Media Agency network in the region. mediaReach OMD continues to be a thought leader and pioneer of various initiatives at the industry level, including syndicated & proprietary researches. mediaReach OMD continues to add ‘value’ to respective Client’s Businesses by delivering Better Decisions, Faster. 2020 marks the 21st year of mediaReach OMD’s journey in West Africa beginning in Nigeria, Ghana, Cameroon, Côte d’Ivoire and partner offices in other West & Central African countries giving an unrivalled coverage to existing Clients in the Region. In 2019, mediaReach OMD Ghana won Gold & Silver for the Use of Media at the Pitcher Awards in the region, which gave credence to local work being produced for clients in Ghana. In June 2019, OMD also was awarded the Most Medalled Media Network at the Cannes Lions Festival of Creativity.

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Meridian Port Services Limited (MPS) Workers Say Ayekoo From Terminal 3 On Independence Day

We the MPS Workers of the Maritime & Dockworkers Union (MDU) and the Enterprise Based Union (EBU) of the Meridian Port Services Limited (MPS) are happy to be a part of the magnificent investment by MPS in the Tema Port Expansion Project. We invite all stakeholders within the maritime industry to come and experience the efficient 24 hour service provided by Terminal 3 all year round. We are happy to present our perspectives about the positive impacts of MPS’ Tema Port Expansion Project on workers in particular and Ghana in general. What does the Tema Port Expansion Project represent? Many of us joined MPS from GPHA in 2007 when Ghana Ports and Harbours Authority (GPHA) granted MPS a concession to build a dedicated container terminal within the Port of Tema on Two (2) of the 16 berths. With a lot of dedication to work, training of the workforce, investments in equipment and technology in Terminal 2, the Terminal positioned Tema Port as one of the most efficient ports in West and Central Africa with good safety and security controls. Tema Port has significantly expanded its share of container traffic in West Africa due to the level of services rendered by MPS and we are proud to be a part of this success story over the past 13 years in Terminal 2 and we are excited about our future in Terminal 3. With the future of container transportation changing to the use of large vessels, we were very excited when MPS was

again positioned to invest in the vision of Ghana Ports and Harbours Authority’s (GPHA) Masterplan for the expansion of the Port of Tema. As at now the future of the Port of Tema is very bright because MPS has built the cornerstone of the GPHA Masterplan for the development of the Port of Tema and has created the opportunity for stakeholders to further develop other parts of the Port of Tema into logistics platforms. Having built capacity for the Port of Tema in Terminal 3, we are proud to see the new generation vessels which could hitherto not call directly at the Port of Tema berthing at Terminal 3. We the workforce are excited to be operating, maintaining and managing these giant cranes which happen to be the largest in the world. We are equally excited to be servicing large new generation class of vessels. We are proud that the Port of Tema is living up to the expectation of being West Africa’s First-Port-ofCall. We are happy to know that for the next 35 years our employment is guaranteed and believe that since the port is built on design criteria to last for 100 years, Terminal 3 would provide employment not just for us during our lifetime, but will provide employment for many generations to come. The earlier MPS Concession would have ended in 7 years but with the Tema Port Expansion Project, there is a 35 year period where there is a guarantee of jobs for workers of the revenue collection agencies, security agencies, port authority supervisory employees, statutory bodies, all direct and indirect workers and service

providers of Terminal 3. We have seen an increase in the numbers and workforce of the over 100 suppliers and subcontractors who provide services at Terminal 3 and see the smiles on many faces of their employees for the opportunities presented to them by the expanded port. It is also heartening to note that many of the contractors who built the Port have left behind a lot of trained workers who have found jobs in other sectors of the construction industry because of the exposure that the building of the Port Expansion Project provided. We also remember with fond memories the many local companies that were positively impacted through their provision of services during the construction of this magnificent edifice. We are proud to acknowledge the contribution of the many environmental consultants, project management companies, quarries, cement companies, iron rod manufacturing companies, haulage companies, food vendors, equipment supply and equipment hiring companies who in various ways made the construction of this masterpiece a reality. Terminal 2 is ready to be handed over to the Port Authority and we are excited to note that this facility which provided employment to over a thousand people during the period when it was occupied by MPS can now be used for other non-containerized cargo business. To this end, we see that the movement of MPS from Terminal 2 to Terminal 3 provides the excellent opportunity for the use of Terminal 2 in the ef-

ficient handling of various types of cargo such as Roll-On- RollOff (RORO) cars, busses, trucks, agricultural vehicles project cargo, cranes, liquid bulk such as Crude oil, petrol, fuel oil, vegetable oils, dry bulk including grain, coal, iron ore, cement, sugar and break bulk that may consist of Paper, wood, bags of cocoa, rolls of steel. This is the future we see in the Port of Tema hence our positive disposition. How does T3 contribute to the brand of Ghana? According to the International Maritime Organization (IMO) about 90% of global trade is by sea and having positioned the Port of Tema with the modernization that Terminal 3 has brought to Ghana, we are happy to say that MPS has built the right infrastructure to connect Ghana to the Global sea trade. The modernization of Terminal 2 to receive non-containerized cargo will even further boost the capacity of the Port of Tema for the Africa Continental Free Trade Area. MPS is partnering the Port Authority to bring connectivity between the various economies of Africa to enable businesses and workers thrive. We see a future in the generation of more jobs as Tema is plugged into the AfCTA of 1.2 Billion people with a 3 Trillion US Dollar economy. We see a future in the development of many businesses in and around the Port of Tema just as is currently happening in the Port of Tanjung Pelepas (PTP) Malaysia. The economies of scale advantages provided by the large new generation vessels and the positioning of Tema as a first-port-

of-call will certainly impact businesses positively and translate into more jobs for the skilled but unemployed youth of Ghana. We see a future for Ghanaian farmers and other agro and small scale businesses to be able to export their products throughout Africa and beyond at a much lower cost and with good turnaround times to compete with farmers and businesses from other parts of the continent. The whole nation stands to benefit from this-a positive ripple effect. Many lives stand to be improved with the creation of wealth and the reduction in cost of goods and services in the long run. A definition of MPS’S corporate slogan, “We Connect, You Thrive”. Terminal 3 is here to promote employment, economic and social development in our nation Ghana. “Woforo dua pa a, na yepia wo” when you climb a good tree, you are given a push is the Adinkra symbol of support for good causes and we as workers of MPS will urge all Ghanaians to give a push to the good causes provided by Terminal 3, Port of Tema. GOD BLESS OUR HOMELAND GHANA AND MAKE OUR NATION GREAT AND STRONG! HAPPY 63RD INDEPEDENCE CELEBRATION TO GHANA. LET US “CONSOLIDATE OUR GAINS” FROM THIS MAGNIFICENT NATIONAL EDIFICE!

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