Business24 Newspaper (March 21, 2020)

EDITION B24 | 20

FRIDAY MARCH 20, 2020

THEBUSINESS24ONLINE.COM

Emergency budget likely

2020 WASSCE, BECE

…after BoG, IMF warnings on virus fallout

WAEC awaits gov’t’s directive

BY DOMINICK ANDOH

An emergency budget by the government may be on the cards, after the Bank of Ghana (BoG) issued a dire warning on the economy’s growth outlook on Wednesday and the International Monetary Fund (IMF) said African governments may need to take urgent action to mitigate the impact of COVID-19 on their economies.

On Wednesday, the BoG downgraded the economy’s growth forecasts due to the actual and potential ramifications of the COVID-19 outbreak, saying it expects 2020 GDP growth to register 5 percent in the baseline scenario and 2.5 percent in the worst-case scenario. These figures are sharply lower than the 6.7 percent growth rate projected in the government’s 2020 budget and financial statement.

Reacting to the unfolding crisis in a statement issued by the IMF’s Country Office in Accra, Albert Touna-Mama, Resident Representative of the Fund, said it may require an emergency

BY BENSON AFFUL

HON. DR MATTHEW OPOKU PREMPEH

The West African Examinations Council (WEAC) has given an indication that preparations for the 2020 West African Senior School Certificate Examination (WASSCE) as well as the Basic Education Certificate Examination (BECE) are on course, unless the government gives a contrary directive.

This year’s WASSCE, which marks the graduation of the first batch of students under the government’s free Senior High School policy, is scheduled to begin on March 30 and end on June 1, while the BECE is slated for June 15-19.

KEN OFORI-ATTA, MINISTER OF FINANCE

budget for countries like Ghana to manage the situation effectively, as COVID-19 disrupts normal economic lives and depresses government revenues.

“The emergency budget would take stock of the overall fiscal cost deriving from the

priority of ‘saving lives and safeguarding livelihoods’, especially in a new scenario with lower global and domestic growth, and completely different commodity prices,” Dr. Touna-Mama said.

The widespread impact of COVID-19 has led to a sharp

drop in international commodity prices and a slowdown in domestic business activities that are expected to significantly affect government’s revenue projections for MORE ON PAGE 2

MORE ON PAGE 2

Airlines suspend operations …as COVID-19 bites hard

BY DOMINICK ANDOH

Many international and regional airlines operating in the country will be suspending

flight services temporarily, effective today, for between one and two months, following travel restrictions imposed to contain the rapid

MORE ON PAGE 2

spread of the coronavirus (COVID-19).

Turkish Airlines, TAP Portugal, Emirates, Brussels, Egypt Air, and Africa World Airlines (AWA)

HON. JOSEPH KOFI ADDA

ECONOMIC INDICATORS

UNION WANTS STAGGERED HOURS, WORK SHIFTS FOR MARITIME WORKERS

PARLIAMENT APPROVES €53M LOAN FOR NEW TAKORADI MARKET

MORE ON PAGE 03

MORE ON PAGE 05

INTERNATIONAL MARKET

*EXCHANGE RATE (INT. RATE)

USD$1 =GH¢5.6896*

EXCHANGE RATE (BANK RATE)

USD$1 =GH¢5900.*

*POLICY RATE GHANA REFERENCE RATE

14.5%* (YET TO BE SET)

BRENT CRUDE $/BARREL NATURAL GAS $/MILLION BTUS GOLD $/TROY OUNCE CORN $/BUSHEL

*INFLATION RATE

7.8%*

COCOA $/METRIC TON

PRODUCER PRICE INFLATION:

11.8%

COFFEE ¢/POUND:

91 DAY TREASURY BILL INTEREST RATE

14.7586%

SUGAR ¢/POUND

AVERAGE PETROL & DIESEL PRICE:

GHc 5.13*

SILVER $/TROY OUNCE:

-2.50 ($26.23) -0.10 ($1.63) -39.50 ($1,486.30) -8.75 ($335.25) -34.00 ($2,284.00) +5.70 ($108.30) -0.22 ($10.67) -0.50 ($12.00)

2

WEDNESDAY MARCH 18, 2020

| THEBUSINESS24ONLINE.COM

News/Editorial WAEC awaits gov’t’s directive

continued from page 1

President Akufo-Addo on Monday directed the closure of all schools and universities and suspended public events to help contain the spread of COVID-19, as a string of African nations imposed tighter restrictions to stem the spread of the global pandemic.

However, final-year JHS and SHS students were exempted from the directive and are to remain in school and adhere to prescribed social distancing protocols while they prepare for their examinations.

Concerns have however been raised by teacher unions for government to suspend the WASSCE and BECE until the country is able to contain the pandemic. But reacting to the issue in the media, the Public Relations Officer of WAEC, Agnes Teye Cudjoe, said the examinations body will continue running its operations and stick to its calendar until further directives from the President are issued.

Several teacher unions have appealed for an extension of the four-week shutdown of basic and second-cycle schools in the country to cover final-year students in those schools.

The unions, comprising the Ghana National Association of Teachers (GNAT), the National Association of Graduate Teachers (NAGRAT), the Teachers and Educational Workers Union (TEWU) and the Coalition of Concerned Teachers Ghana claimed that the students would rather be exposed to the virus when allowed to remain in school, since there are day students among them who attend classes from home.

According to them, an estimated 397,500 students who will write the BECE and the about 490,882 students who will write the WASSCE could all be at risk of contracting the coronavirus disease (COVID-19).

LIMITED Copyright @ 2019 Business24 Limited. All Rights Reserved.

Editorial Team Dominic Andoh: Editor Eugene Kwabena Davis (Head of Parliamentary Business & Commodities) Benson Afful (Head of Energy & Education) Patrick Paintsil (Head of Maritime & Banking) Marketing Alexander Lartey Agyemang (Business Development Manager) Ruth Fosua Tetteh (Dept. Business Development Manager) Gifty Mensah (Marketing Manager) Irene Mottey (Sales Manager) Edna Eyram Swatson (Special Projects Manager )

Editorial: The ‘airline pandemic’ The spread of the coronavirus pandemic has rapidly evolved into an ‘airline pandemic’ rampaging through continents, regions, countries and territories.

From today, many international and regional airlines servicing the Kotoka International Airport will be suspending flight services temporarily for months due the outbreak in many parts of the

world.

A travel advisory that bans passenger from countries with over 200 from coming into Ghana, and strict movement of people to and within the EU, the UK and US have gravely crippled the airlines industry.

Turkish, TAP Portugal, Emirates, Brussels, Egypt Air, RwandAir and Africa World Airlines (AWA) have either halted operations temporarily or reduced frequencies in

the midst of the current challenging operating environment.

The fact is, these are very difficult times. The aviation industry has not experienced such a world-wide health-related impact for ages.

Airlines around the world have had to send staff home for months. In Ghana, the suspension of flights means airlines would have to pay their staff for no work done until things nor-

malise or the worst-case scenario lay them off.

The repercussions are dire for travel and tourism operators. Hundreds of travel and tour companies many fold up and hundreds of staff laid off during these trying times.

Business24 believes that the situation is critical and require a comprehensive plan now to keep businesses afloat.

Airlines suspend operations …as COVID-19 bites hard

continued from page 1

have all indicated that they will be suspending flight operations temporarily, in line with the travel advisory issued by the Government of Ghana and other COVID19-related developments in Europe, the UK and US. TAP Portugal has suspended operations for two months, while Egypt Air suspended operations on March 19 and is expected to resume on March 31.

RwandAir today suspended operations for a month, while Turkish Airlines is suspending operations effective today until April 18.

Emirates will suspend operations starting March 21 until May 20, and Brussels Airlines will pause flights starting March 21 until April

19.

Air France will halt operations effective March 23 until further notice, and KLM effective March 28 until further notice.

Indigenous airline Africa World is suspending flight operations to Abidjan and Freetown from March 20 and March 22 respectively, in accordance with instructions issued by the governments of the two countries.

AWA, in a statement copied to Business24, said passengers on cancelled flights will receive notification of the cancellation via their original booking channel, and may either rebook to a future date or seek a refund.

“AWA continues to operate flights from Accra to Kumasi, Tamale, Takoradi, Wa, Lagos,

Abuja and Monrovia at this time,” the statement added.

Ethiopian Airlines and Asky Airlines have indicated that they will still operate, albeit with significantly reduced flight frequencies until the COVID-19 is brought under control and things normalise.

The Government of Ghana, as part of measures to contain the spread of the COVID-19 disease, issued a new travel advisory that bans all travel by non-Ghanaians into Ghana from countries with at least 200 cases of coronavirus.

The travel advisory, issued on March 15, also outlined measures to quarantine Ghanaians travelling into Accra from countries subject to the ban.

The downturn in the industry is expected to significantly

affect the expected revenue of the airports operator, Ghana Airports Company Limited (GACL), and its ability to service loans secured for major on-ground projects, such as the renowned Terminal 3 of the Kotoka International Airport.

Based on the International Air Transport Association’s (IATA) projections, the current drop in load factor—a measure of airlines’ capacity utilisation— will continue for the next three months before loads recover to pre-coronavirus levels.

IATA estimates, under two potential scenarios—partial containment and widespread community transmission— that passenger revenue losses for its member airlines will be between US$63 billion and US$113 billion.

Emergency budget likely …after BoG, IMF warnings on virus fallout continued from page 1 the 2020 fiscal year.

The benchmark price of crude oil used to project the government’s petroleum receipts for 2020, for instance, is now clearly an overshoot. The price projection for oil was US$62.6 per barrel, and the gas price for 2020 was also projected at US$4.31 per MMBtu. Based on these price projections, the total petroleum revenue expected for 2020 is US$1.6 billion, made up of royalties (US$254.4 million), carried and participating interest (US$817.8 million), corporate income tax (US$493.3 million), and surface rentals (US$1.6 million).

However, as at the end of trading on Wednesday, Brent crude—which was trading around US$60 per barrel barely two months ago—has dropped to US$26.23; gold, US$1,486/ troy ounce; natural gas, US$1.63 per million BTU; and cocoa, US$2,284 per metric ton.

Given commodity price shocks, the IMF said drawing down on sovereign wealth funds may be needed.

“The fiscal cost is expected to be sizeable while mirroring an equally large financing gap because of falling tax revenues (oil receipts, custom duties) and tight financial conditions.

The so-called ‘automatic stabilisers’ would also kick in to weather the shock, including drawing down on sovereign wealth fund

and the likes,” the Fund’s statement said.

BoG acts to ease virus pain After issuing its grim prognosis, the BoG announced a raft of measures to enable financial institutions make funds available to highlyimpacted sectors and to individual borrowers.

Its Monetary Policy Committee lowered the monetary policy rate—the rate at which the central bank lends to other banks—by 150 basis points to 14.5 percent. The central bank also reduced its primary reserve requirement from 10 percent to 8 percent to provide more liquidity to banks to support critical sectors of the economy.

Other measures include a reduction in provisioning for loans in the “Other Loans Especially Mentioned”

(OLEM) category from 10 percent to 5 percent for all banks and Specialised Deposit-Taking Institutions (SDIs) as a policy response to loans that may experience difficulty in repayments due to the slowdown in economic activity.

The BoG also noted that “loan repayments that are past due for microfinance institutions for up to 30 days shall be considered as ‘current’, as in the case for all other SDIs.” “These assessments are preliminary, as the situation is very fluid and the degree of uncertainty concerning the outbreak is very high. This means that there is a likelihood that these assessments could change rapidly,” the central bank added.

NEWS

THEBUSINESS24ONLINE.COM |

FRIDAY MARCH 20, 2020

|

3

Union wants staggered hours, work shifts for maritime workers

BY PATRICK PAINTSIL The Maritime and Dockworkers Union (MDU) of the Trades Union Congress (TUC) has asked employers in the maritime space to deploy preventive measures that will enhance the safety of port workers in the discharge of their duties amid the deadly coronavirus pandemic.

In a statement signed by its General Secretary, Daniel Owusu Koranteng, and copied to Business24, the union proposed that employers should introduce staggered work shifts, provide infrastructure for teleworking and also develop a policy for remote work.

The union backed its request with Section 118(1) of the Labour Act,2003 (Act 651) which states that “it is the duty of an employer to ensure that every worker employed by him or her works under satisfactory, safe and healthy conditions”.

The statement also stated that: “All maritime employers must perform routine environmental cleanings of frequently touched surfaces in the workplace, provide facilities for instant temperature checks of workers and visitors and encourage sick employees to stay at home.”

Daniel Owusu-Koranteng, General Secretary of MDU

The coronavirus scourge has grossly impacted all sectors of the economy with a ban on public, social and religious gatherings currently in force.

Some businesses have asked their staff to work from home with others monitoring the situation carefully.

The ports operator, Ghana

Covid-19: Car dealers count losses

BY BENSON AFFUL Used cars dealers in Ghana are reeling under the global coronavirus pandemic, as they and their agents are unable to travel to majority of the countries where these cars are imported to procure them and arrange shipment.

Samuel Tetteh, proprietor of LIMS Motor, in an interview with Business24 said he bought some used vehicles many weeks ago from the U.S and now he is not sure whether he will be able to take delivery of them, given the spread of coronavirus in the US and the restriction of movement in that country.

“It is not possible to bring cars from the U.S, Japan or Korea because that’s where our agents are. Currently, they are unable to move around freely to convey the cars to specific locations and arrange shipment,” he said.

“I have been in the house in the last three days without going to the garage, and only calling my debtors but they are also not paying but I can’t blame them because they are also not working,” he said.

Dominic Kwame Donkor, the Chief Executive Officer of Gyeedom Motors said the appre-

hension among the Ghanaian populace about the COVID-19 is having a toll on even vehicle purchases.

Mr. Donkor, who used to sell vehicles every week said now he hardly sells any per week, as the potential buyers are scared of visiting the garage.

“Potential buyers call me every day to ask for the price of the cars but when I ask them to come to the garage to see them, they refuse to come,” he added. The government of Ghana has directed that any traveller who, within the last 14 days, has been to a country that has recorded at least

200 cases of persons infected of the Coronavirus (COVID-19) disease, would not be permitted into the Ghanaian jurisdiction, except for Ghanaian citizens and persons with a valid residence permit.

Laud Kwesi Affrifah, the Deputy Comptroller of Immigration (DCGI) in-charge of Command Post and Operations, who briefed the media on Wednesday indicated the Ghana Immigration Service has refused about 200 foreign nationals’ entry into the country as part of measures to curb the spread of COVID-19 in Ghana.

Ports and Harbours Authority, has taken the rare but critical decision to suspend all port tours by schools and organisations with immediate effect in

its bid to reduce human interactions.

It is also currently liaising with shipping agents to identify all high-risk vessels that may be coming into the country for the necessary precautionary action to be taken.

As part of the measures, cruise ships scheduled to take berth at the Ports of Tema and Takoradi respectively have been suspended.

To sustain awareness among maritime workers, the MDU is urging employers to appoint a dedicated officer to ensure regular discussions on the response plans as well as subsequent reviews where necessary.

The union also indicated its willingness to work with maritime employers to develop plans against the possible spread of the coronavirus to companies in the sector.

“We believe that collective efforts of management and workers would go a long way to eliminate the coronavirus menace at the workplace.

We wish to express our readiness to work with you to create a safe working environment in this difficult time of the spread of the coronavirus,” the statement said.

Adhere strictly to Covid-19 precautionary measures—OHLGS advises staff The Office of the Head of the Local Government Service has cautioned staff of Regional Coordinating Councils (RCCs), Metropolitan, Municipal and District Assemblies (MMDAs) to take precautionary measures against the COVID-19.

The Office has asked all MMDAs to suspend their biometric electronic clocking systems till further notice. The directive comes in the wake of the coronavirus pandemic that has impacted both business, social and religious activities across the country.

A statement signed by Ing. Dr Nana Ato Arthur, Head of Local Government Service and copied to the media said: “In view of the above, all RCCs and MMDAs are to suspend the Biometric Electronic Clocking System till further notice.”

It also advised staff to adhere to the precautionary measures outlined in an

official issued by the Ministry of Health.

Measures stated in the MOH’s release in regular and thorough washing of hands with soap under running water and use of alcohol-based hand sanitizers; avoiding shaking hands and keeping a distance of at least two meters from a person with fever, cough, sneezing and difficulty in breathing.”

“It is advisable to be physically active, drink plenty of water, eat healthy, avoid stress and have enough sleep, stay home if you feel unwell with symptoms of fever, cough and difficulty in breathing,” the release continued.

“Adherence to the above directives is key to the safety of staff,” the OHLGS said.

4

|

FRIDAY MARCH 20, 2020

THEBUSINESS24ONLINE.COM

NEWS

THEBUSINESS24ONLINE.COM |

FRIDAY MARCH 20, 2020

|

Vodafone to increase 4G to 48% by month-end

BY EUGENE DAVIS Telecommunications giant, Vodafone Ghana, is expected to increase its fourth generation (4G) cellular network coverage in the country from 38percent to 48percent by March 2021, Communications Minister, Ursula Owusu-Ekuful, has told Parliament.

Currently eleven regions are covered with 4G network.

Five (5) additional regions will be covered by March 2021 and 151out of 260 districts are expected to be covered by March 2021.

These revelations were made when the Communications Minister appeared before Parliament to answer questions on the extent of coverage of fourth generation (4G) cellular network in the country, taking into account regional and district coverage.

The Ministry will continue to work with all stakeholders to ensure that 4G network is made accessible and affordable to all communities to serve the entire citizenry of this country The availability and accessibility of modern communications technology impacts all aspects of business, social and economic life. It is a major ingredient in the measurement of country competi-

MRS. URSULA OWUSU-EKUFUL, MINISTER OF COMMUNICATION

Parliament approves €53m loan for new Takoradi Market

BY EUGENE DAVIS Parliament has approved a €53m facility for the construction of a new market in the Western Region capital, Takoradi.

The loan facility is made up of a SACE facility amounting up to €37,283,001.28 and a tied commercial facility of up to €16,000,000.

The loan would be on-lent to the Sekondi-Takoradi Metropolitan Assembly.

The Market--which currently has a total capacity of 642 stores and 2,980 stalls--would have a total capacity of 2,408 stores and over 3,000 stalls after completion.

The rationale for the loan entails that the Takoradi Market, which is the largest in the Western region is unbearably congested due to the continuous increase in the population and the growth in commercial activities. This situation has led to a lot of health, safety and other challenges.

Owing to the unplanned development, there are inadequate storage facilities, poor wiring, poor water systems and other deteriorating conditions that poses a great risk to traders and visitors.

It is to address these challeng-

Western Regional Minister, Kwabena Okyere Darko-Mensah,

es and reposition the market that the government is financing the construction of a new market in Takoradi. When completed, the new market will create a well-organised and modern facility in the city.

It would attract more buyers and sellers as well as ease congestion in and around the market. However, the Ministry of Finance, Ministry of Local Government and Rural Development and the Sekondi-Takoradi Metropolitan Assembly are working together to create a Special Purpose Vehicle (SPV) with pre-defined purpose of managing and op-

erating the market complex profitably and to ensure that the loan amount is recovered.

According to the Western Regional Minister, Kwabena Okyere Darko-Mensah, the project when completed, would generate a substantial increase in the provision of both direct and indirect jobs to people of the region and beyond.

“It will also facilitate trading in agricultural products, handicrafts and other local products as well as improve the general living conditions of the area,” he told Business24.

5

tiveness and in attracting the desired investments in all sectors of a country, she noted.

4G essentially stands for ‘fourth generation communications system’ and it represents an upgrade from 3G network. It aims to offer users faster, more reliable mobile broadband internet for devices such as the smartphones, tablets and laptops.

It offers extremely high voice quality and it is very fast when downloading huge files over a wireless network with a higher bandwidth.

Currently, MTN has 4G coverage in all 16 regions of Ghana with coverage in about 150 districts, but AirtelTigo does not have the license to operate 4G network in Ghana, according to the minister.

The users of the 4G network get the benefit of superior, uninterrupted connectivity, especially for the advanced tasks like video chats and conferences. Currently in Ghana, MTN and Vodafone have acquired spectrum in the800 MHz bands and are offering 4G services.

Furthermore, the Minister indicated that those who have devices that are 4G enabled can attest to the fact that it offers a different quality of user experience compared to the 3G services.

6

|

NEWS

FRIDAY MARCH 20, 2020

THEBUSINESS24ONLINE.COM

Producer price inflation drops to 11.8percent in February The Producer Price Inflation rate for February 2020 was 11.8percent, representing a 2.7 percentage point decrease relative to the rate recorded in January 2020 of 14.5percent.

The month-on-month change in producer price index between January 2020 and February 2020 was negative 0.3 percent.

Prof. Samuel Kobina Annim, the Government Statistician, who announced the rate via a recorded message instead of a press conference in line with the directive on public gathering, said the producer price inflation in the Mining and Quarrying sub-sector decreased by 6.1 percentage points over the January 2020 rate of 32.2 percent to record 26.1 percent in February 2020.

The producer inflation for Manufacturing which constitutes more than two-thirds of the total industry decreased by 2.5 percentage points to record 8.7 percent.

The utility sub-sector recorded an inflation rate of 12.3 percent for February 2020 in-

dicating a decrease of 0.3 percentage point over the January 2020 rate of 12.6 percent.

In February 2019, the producer price inflation rate for

all industry was 5.4 percent. In April 2019, the rate increased to 7.1 percent but declined to 6.7 percent in May 2019.

Since then, the rate increased

consistently to record 10.2 percent in August 2019 but declined to 8.9 percent in October 2019.

The rate then increased

again continuously to record 14.5 percent in January 2020 but declined to record 11.8 percent in February 2020.

Manufacturing Sector during February 2020, five out of the sixteen major groups in the manufacturing sub-sector recorded inflation rates higher than the sector average of 8.7 percent.

Manufacture of machinery and equipment recorded the highest inflation rate of 24.7 percent, while the Manufacture of textiles recorded the least inflation rate of 0.2 percent.

The producer inflation rate in the petroleum subsector was 8.9 percent in February 2019.

In April 2019, the rate increased consistently to record 17.2 percent but declined to 1.2 percent in June 2019.

However, it increased to 3.1 percent in August 2019 but declined again to negative 5.7 percent in October 2019.

Thereafter the rate increased consistently to record 20.6 percent in January 2020 but declined to record 14.4 percent in February 2020. GNA

THEBUSINESS24ONLINE.COM |

FRIDAY MARCH 20, 2020

|

7

8

|

F E AT U R E

FRIDAY MARCH 20, 2020

THEBUSINESS24ONLINE.COM

Ensuring gender equality in the workplace

BY MRS. MANSA NETTEY, CHIEF EXECUTIVE, STANDARD CHARTERED BANK GHANA LIMITED

International Women’s Day 2020 has been a great opportunity for Standard Chartered to continue to promote equality and inclusion. We know we are heading in the right direction but remain acutely aware of the need to take bolder actions to rapidly level the playing field for our clients, colleagues and stakeholders.

It starts with us The International Women’s Day was instituted more than 100 years ago in 1911, while the Fourth World Conference on Women by the UN, popularly known in Ghana as the Beijing Conference, occurred 25 years ago. These two-events mark milestones on the difficult drive for gender equality.

We have made strides along the way that have sustained our progress. As we foreground the lives of 49.2% of our female workforce, other female stakeholders and especially our female customers, we reiterate that achieving gender equality requires effort from all genders especially those in privileged positions.

Gender equality is not an issue that has to be tackled by women only; it is economically expedient to get all handson board in achieving this goal. The HeForShe initiative by the United Nations is an example of how men need to make conscious efforts at closing the gender gap. We are cognizant and grateful for the unshakeable contribution our male colleagues at Standard Chartered, have made towards the successes our female colleagues have chalked over the years.

Research is unanimous in arguing that women’s active participation in the workforce bolsters productivity and enhances the economic growth of any organisation, yet, practically, statistics also reveal that we do not have enough being done in this regard. Research by The Boardroom Africa shows that women make up a paltry 8% of all CEOs listed on Ghana’s Stock Exchange; women form just 3% of all chairpersons on Ghana’s listed boards.

In other words, female CEOs and female chairpersons are less than 1 in 10 and 1 in 5 respectively. There are similar figures for positions like MD, COO, and CFO where women occupy 5% or less across companies in Ghana.

Mansa Nettey

Again, women represent 15% of company secretaries.

In terms of directors, there are 62 female directors to 244 male directors. And finally, out of all non-executive directors on Ghana’s listed boards, women constitute 20%. These statistics illuminate the extensive gap that requires concerted and strategic efforts by all players in corporate Ghana.

Further, this data does not reflect the immense contribution of women in our corporate workforce; rather it illuminates the various biases which inhibit their progress and affirms our view that in order to ensure women’s equality at the upper echelons of any corporate organisation, a safe working space has to be pro-

vided for all genders to thrive; where women perceive that they can give the best of themselves without imposed stereotypical albatrosses around their necks, we will be all the better for it. These figures illuminate the extensive gap that requires concerted and strategic efforts by all players in corporate Ghana.

It makes perfect business sense Ensuring gender equality transcends individual acts, especially when systemic and structural regimes maintain the status quo. We prioritise actions over rhetoric. Female representation in our senior leadership team is 47%. Our board has 38% female rep-

resentation which is ahead of our global aspirations as a Bank.

Our commitment to gender equality and diversity informs our policies that make our working environment a safe space. We pride ourselves with the highest standards of conduct and have created safe channels for employees to speak up should they face any form of gendered harassment or abuse.

Furthermore, we prioritize work-life balance through our parental leave policy. Our female colleagues are eligible for up to 5 months of paid maternity leave while our male colleagues get up to 2 weeks of paid paternity leave. This helps ease the burden placed

on women after childbirth and encourages both parents to actively support each other on the parenting journey. We believe that our colleagues should not be forced to choose between being good parents and good employees. We can do both.

Standard Chartered, offers flexible working arrangements that gives our colleagues the freedom to choose where and when to work, to help balance their personal and professional goals. It involves flexible working arrangements such as part-time, flexible working hours, remote working and sabbaticals.

I believe the female staff at Standard Chartered, do a great job in overachieving targets, mentoring and training talent and living up to W.E.B Dubois’s quote which says, “There is no force more powerful than a woman determined to rise.” We will continue to support them to reach the apex of their careers and take on the world.

As a Bank, our colleagues continue to volunteer their skills and time to support the development and progress of women across the age spectrum. We recently organised speed mentoring and coaching sessions with girls in second and third cycle institutions. In partnership with Mentoring Women Ghana, we supported a mentoring session for young impressionable women preparing to start out their careers. We also organised an awareness session on fraud, information and cyber security for female entrepreneurs and business leaders to support them to grow their businesses sustainably.

A force for good for our clients, colleagues and communities Having been in the Ghanaian market for over 120 years, Standard Chartered remains Here for Good and will continue to play a pivotal role in our socio-economic development.

At Standard Chartered, we remain committed to be the best bank for our employees, the best financial institution to do business with and the organization that best supports our communities to become more prosperous by sustainably supporting small, medium and large corporates while enabling the full potential of women in a balanced working environment.

Mansa Nettey is a Ghanaian banking executive. She is the first female Chief Executive Officer appointed by the Standard Chartered Bank of Ghana.

THEBUSINESS24ONLINE.COM |

FRIDAY MARCH 20, 2020

|

9

10

|

MARTIME

FRIDAY MARCH 20, 2020

THEBUSINESS24ONLINE.COM

Transit players assess trade performance for 2019 Stakeholders in the shipping and logistics industry have evaluated the transit trade regime in 2019 and its impact on businesses to position Ghana as the preferred transit corridor for the landlocked countries of Burkina Faso, Mali and Niger.

Representatives from the Ghana Shippers’ Authority (GSA), Ghana Ports and Harbours Authority (GPHA), Niger Shippers’ Council, GCNet, Ghana Revenue Authority (GRA)-Customs Division, State Insurance Company (SIC) among others deliberated on issues that took centre stage during the past year and proposed solutions to them.

The stakeholders discussed concerns of shippers on axle load reading disparities, non-working of shipping lines on weekends and holidays, congestion and operational challenges at MPS Terminal 3, insufficient tracking devices and among others.

Head of Freight and Logistics of the GSA, Mr. Fred Asiedu-Dartey (right) responding to the concerns of one of the stakeholders.

The assessment of the 2019 transit trade regime took place at the Ghana Shippers’ House in Accra on 12th March, 2020 during the first quarter meeting of the Greater Accra Tran-

Takoradi Port designates quarantine areas for Covid-19

The Health Services Department of the Takoradi Port in conjunction with Port Health has taken significant steps to ensure that they curtail any spread of COVID-19, should the virus find its way through the port.

According to the Head of Medical Services, Takoradi Port, Dr. George Tida Kabi, in preparedness towards possible contact with the coronavirus, there are two separate holding areas designated for the addressing any potential cases.

The holding areas, which have been furnished with the necessary protective equipment and bed space, according to him is meant for solely those identified by the health authorities for having the disease.

“These are solely for people who would walk into our facility and been identified by we the health personnel to have COVID-19. We would keep the person in our holding area, and trigger emergency preparedness, by informing the

Regional Health Directorate,” he revealed.

He said, his outfit is collaborating closely with the Port Health Unit of the Ghana Health Service, to ensure crew on board as well as clients and staff of the Port who show symptoms are quickly tested and quarantined where necessary.

“Usually port health would get information that a ship is coming, and the crew list is available to them. They would first go to the ship and identify the client, and they would notify us,” he explained.

The Head of Medical Services, Takoradi Port also revealed that the staff of the Authority have also been adequately trained in preventive measures.

He added that intensive simulation exercises would be conducted as soon as the Management takes receipt of sufficient Personal protective equipment.

“The process of procurement is about 90%,” he disclosed.

sit Shipper Committee.

Topical on the evaluation was the consensus by members of the Committee on the need for the GCNet to provide adequate tracking devices for the

monitoring of trucks on the corridor. They also proposed a full audit of the tracking infrastructure to address recurring defects of the system in order to engender effective moni-

toring to fight the diversion of transit goods.

The Head of Freight and Logistics of the GSA, Mr. Fred Asiedu-Dartey disclosed at the meeting that the Authority was in talks with the Ghana Highway Authority (GHA) to put up a shed by the axle load station on the Tema motorway for the safekeeping of shedoff cargo. Presently, shed-off goods are left in the open at the mercy of the weather.

Other stakeholders present at the meeting included the Joint Association of Port Transport Union ( JAPTU), Burkina Faso Chamber of Commerce, Customs Brokers Association, Ghana (CUBAG) and the Ghana Standards Authority.

The Transit Shipper Committee is a platform created by the GSA to assist in facilitating trade between Ghana and its landlocked neighbouring countries of Burkina Faso, Mali and Niger.

Women’s wing of Tema MDU mark Int’l Women’s Day

Members of the Women’s Wing of the Tema District of the Maritime and Dockworkers’ Union of the Trades Union, Ghana, have met to celebrate the International Women’s Day to assess the general scope of gender equality in today’s world as well as deliberate on issues confronting women in the maritime industry. Abdul-Rahman Baidoo, Chairman of the MDU encouraged the first female Director of Port of Tema, to continue to play a key role in conscientizing the organisation towards increased women participation, especially in areas of leadership.

The General Secretary of the Maritime and Dockworkers Union, Daniel Owusu Koranteng, said women possess some innate strengths even superior to that of men and should be allowed more opportunities of work in the maritime industry.

“We live in a world now where it is not about the muscles or height, but the brain.

Women have emotional intelligence and they are people-centred. They think about society.”

The Director of Tema Port, Sandra Opoku, who was the guest speaker at the meeting, explained the essence of gender equality for global so-

cio-economic development.

“It is the precondition for meeting the challenge of reducing poverty, promoting sustainable development, and building good governance.

You need women, because we are nurturers and because we make more than half of the population,” she asserted.

She encouraged the membership of the women’s wing of the MDU, to stay focused on their various assignments, and stand their grounds at their areas of work, against any form of intimidation.

“Because of your good work, other women would also be given the opportunity,” she urged.

THEBUSINESS24ONLINE.COM |

FRIDAY MARCH 20, 2020

|

11

12

|

THE INTERVIEW

FRIDAY MARCH 20, 2020

THEBUSINESS24ONLINE.COM

Dr. Nana Ato Arthur—A unique leader transforming local governance His commitment to changing the narrative of public service remains unquestionable. Through driving change in the local government sector, Dr. Nana Ato Arthur is strenthening the very foundations that define us, as a people. Patrick Paintsil looks at the legacy of a committed public servant Dr Nana Ato Arthur, one of Ghana’s unique personalities whose contribution to the local governance space cannot be disputed.

He was appointed Head of the Office of the Local Government Service (LGS) in March 2017 to apply his expertise and experience in local governance to transform the decentralisation process by making it more vibrant and efficient to propel the development of the country.

Throughout his tenure, he has approached decentralisation as a development tool, considering its success in other African countries, and has effectively deployed it to better the lots of the citizenry, specifically those at the local level.

Dr. Ato Arthur has always maintained that decentralisation was a process and not an event and therefore needed to work on a number of areas to ensure the smooth operationalization of the process.

That approach has seen him identify key areas that he believed needed to be tackled and streamlined in order to make the Local Government Service more robust to effectively discharge its duties.

One of the areas was the strengthening the developing the planning units of the Regional Coordinating Councils and the Metropolitan, Municipal and District Assemblies (MMDAs) for the collection of reliable data to ensure effective planning and budgeting.

He has also identified capacity building of staff, sharing of skills/knowledge by assemblies, deployment of Information Communication Technology (ICT) to improve Internal Generated Funds (IGF) as other plausible means to push the national decentralisation agenda.

The need to strengthen MMDAs through the performance contracts, introduction of funds to offer motivational packages and LGS staff adhering to postings are also key on his agenda.

Other areas included are instituting a biometric clocking system, weeding out staff with fake certificates and impersonated staff and sanitation.

In propelling his vision, Dr Nana Ato Arthur has promoted best practices in the various assemblies to ensure balanced development as they have varied capacities.

He also tasked assemblies to use ICT to improve their IGF instead of relying entirely on the District Assembly Com-

DR. NANA ATO ARTHUR

mon Fund (DACF) for development, which was quite inadequate.

Part of his vision is also to use ICT to facilitate and develop a Digital Mapping System to assist in the identification of rating properties within assemblies and use professionally trained revenue collectors to collect more revenue to improve on the IGF of assemblies and build the capacity of Environmental Health Officers to improve on sanitation in the various MMDAs which are on course.

Dr. Ato Arthur, as the leader of the local government service, has instituted a system to check on staff who refuses to adhere to postings from one assembly to another as well as use the clocking system to check staff lateness to work, especially in the rural areas

where lateness to work seems to be a normal routine.

Currently, staff of the LGS are also requested to submit all original certificates for verification and authentication by the requisite awarding institutions in order to weed out staff with fake and impersonated certificates.

This is to ensure that the right things are done in the service for the effective delivery of its mandate in developing the country as well as ensuring that the service remains a professional service.

The LGS under Dr Ato Arthur is contributing immensely to the decentralisation agenda of the country by discharging its responsibilities to securing the effective administration and management of decentralized systems of Ghana.

The Service has been posi-

THE NEED TO STRENGTHEN MMDAS THROUGH THE PERFORMANCE CONTRACTS, INTRODUCTION OF FUNDS TO OFFER MOTIVATIONAL PACKAGES AND LGS STAFF ADHERING TO POSTINGS ARE ALSO KEY ON HIS AGENDA.

tioned as the driver of local economic development which is a reflection of the service’s motto: decentralization, democracy and development (the 3Ds).

The Head of Service on the local electoral system fully support the election of Metropolitan, Municipal and District Chief Executives (MMDCES) as proposed by the President Nana Addo Dankwa Akufo-Addo.

One of the uniqueness of Dr Nana Ato Arthur is that he is not an armchair Head of Service, but someone who has visited over 150 MMDAs to interact with the Assembly staff, know under which condition they work, the challenges they face and the possible solutions to their problems.

THEBUSINESS24ONLINE.COM |

FRIDAY MARCH 20, 2020

|

13

14

|

FRIDAY MARCH 20, 2020

H E A LT H / P H A R M A

THEBUSINESS24ONLINE.COM

The three essential questions about COVID-19 Public-health specialists in the United States and elsewhere must focus squarely on gathering more data regarding how the COVID-19 virus spreads, and which segments of the population are most vulnerable. Answering these questions as quickly as possible has become a matter of life and death.

BY TOM FRIEDEN The single most important component of an effective response to the COVID-19 pandemic is rapid use of data. I recently highlighted 19 critical data gaps regarding the novel coronavirus that we need to address. Now, with COVID-19 continuing to spread rapidly in the United States and elsewhere, the US Centers for Disease Control and Prevention (CDC) and other public-health specialists must urgently answer three questions in particular.

First, do people without symptoms and children spread the novel coronavirus?

If we are to know who to test and who to quarantine, it is crucial to understand whether asymptomatic people spread infection. If kids don’t account for a substantial proportion of the spread of the COVID-19 virus, as they do with seasonal influenza, then there is much less reason to close schools, and perhaps those that are closed can reopen sooner. Although children up to at least age 18 appear to become very ill with COVID-19 less often, they may be able to spread infection. We need to know how much risk infected children pose to the older and more medically vulnerable people around them, especially because many of these people may be called on to provide childcare during school closures.

Investigating the risk of spread to contacts from patients who never developed symptoms, or from patients who later developed symptoms, can clarify the risk of spread from asymptomatic people. Public-health specialists need to investigate clusters of cases and see how many have a child as an index (that is, first) case. Is this proportion lower than would be expected statistically? And in family and other clusters, are there chains of transmission that start with kids?

Second, how is the virus spreading in hospitals?

We urgently need to protect health-care workers and also to preserve scarce infection-control resources so that we can maintain or expand capacity to provide intensive care to patients who need it. For example, whereas COVID-19 infections spread rapidly to patients and hospital staff in Wuhan, China, and in Northern Italy, Singapore has apparently yet to report a single infection of a health-care worker, despite

diagnosing nearly 250 cases (one who did become infected was a non-medical contact of a confirmed case). Care of a severely ill patient in Singapore, including intubation and intensive care before he was diagnosed, resulted in the exposure of 41 health workers, most of whom used only surgical masks; none became infected.

The number of COVID-19 cases is likely to exceed the supply of protective equipment for health-care professionals, so we need to know which items are most important. For example, regular surgical masks may be sufficient for healthcare workers in most settings, except where there is a risk of aerosolization (such as during bronchoscopy, sputum induction, and intubation).

Investigating known transmission of COVID-19 within nursing homes and hospitals can identify the sources and routes of the virus’s spread.

That would enable us to establish best practices to protect health-care workers and other patients in higher- and lower-resource settings.

Third, who is most likely to die from COVID-19?

To reduce illnesses and

deaths among people infected with the virus, our highest priority must be protection and services for people who are most likely to become severely ill if infected – and who therefore should stay at home and avoid contact with others to the greatest extent possible.

Although older people and those with underlying health conditions are at greater risk from COVID-19, we don’t know the precise age at which the risk actually increases, or the extent to which specific comorbidities elevate that risk.

If, for example, a 62-year-old with well-controlled hypertension and no other illness is not at elevated risk, as seems possible, then we can focus resources on people who need them more.

Analysis should cover only patients diagnosed at least 30 days earlier, and calculate mortality by age, gender, and health status. This might indicate which conditions predict severe illness – for example, obesity, hypertension, diabetes (both well- and poorly controlled), specific medication use, or other factors.

These studies might already be underway – I certainly hope so. Much of the early

Thomas R. Frieden

INVESTIGATING KNOWN TRANSMISSION OF COVID-19 WITHIN NURSING HOMES AND HOSPITALS CAN IDENTIFY THE SOURCES AND ROUTES OF THE VIRUS’S SPREAD

US public-health response to COVID-19 was derailed by the need to deal with infections on cruise ships and repatriate travelers. It’s now crucial that public-health specialists at the CDC and state and local health departments focus on getting answers to these and other critically important questions. By responding rapidly to the data, we can design and implement measures to prevent the further spread of COVID-19, improve outcomes among those infected, and reduce societal harm.

Good data on COVID-19 is a precious resource, and it needs to be much less scarce.

Answering epidemiological questions isn’t a matter of intellectual curiosity; the knowledge we gain could mean the difference between life and death. And we’re now at the point where every minute counts.

Tom Frieden, a former Director of the US Centers for Disease Control and Prevention and former Commissioner of the New York City Health Department, is President and CEO of the global non-profit initiative Resolve to Save Lives, an initiative of Vital Strategies, and Senior Fellow for Global Health at the Council on Foreign Relations. Copyright: Project Syndicate

THEBUSINESS24ONLINE.COM |

FRIDAY MARCH 20, 2020

|

15

16

|

F E AT U R E

FRIDAY MARCH 20, 2020

THEBUSINESS24ONLINE.COM

A Silent Hero of the Coronavirus Crisis Sometimes, no matter how hard one tries, and no matter how selflessly one sacrifices, one stands no chance against a more powerful enemy. The new coronavirus, COVID-19, has proved to be such a foe, and were it not for technology, the battle against it would have been lost by now.

BY PINELOPI KOUJIANOU GOLDBERG

Not to diminish the superhuman efforts of nurses, doctors, and health-care workers worldwide, but sometimes, no matter how hard one tries, and no matter how selflessly one sacrifices, one stands no chance against a more powerful enemy. The new coronavirus, COVID-19, has proved to be such a foe. Were it not for technology, the battle against it would have been lost by now.

Math and technology, to be more precise. I say math, because understanding a concept as basic as “exponential growth” proved crucial for attacking the enemy head-on.

The successful containment of the epidemic in China, South Korea, and Japan has been attributed to strong governments and cultures that put society’s good ahead of private convenience. I would add that these countries also stand out for their students’ high math literacy. In the 2019 PISA rankings, produced by the OECD, China ranks first in math with a score of 591 out of 600, Japan ranks 6th, and South Korea is 7th. By contrast, Italy is in 31st place, Spain places 34th, and the United States ranks 37th.3 PISA scores may have their shortcomings, but they do provide a rough idea of the math literacy of the average citizen in the countries that take part. And the fact that the countries with the highest rankings seem to have adopted the most effective containment strategies serves as a reminder that, ultimately, the reason we want better training in math and logic is not to land more lucrative jobs, but to make better decisions regarding our lives.

Technology has been the true champion in the fight against the spread of COVID-19. Here, I don’t mean the ICUs and respirators without which severely ill patients would not stand a chance. I mean the new data-driven technologies that enabled responsible governments to track the infected, contact them, and quarantine them early. These technologies have been the target of much criticism in recent years. Now, when they are helping us save lives, they deserve our praise.

South Korea’s achievement is truly impressive. As of March 17, the country has had 8,320 cases and 81 deaths, despite an early bad start. Contrast this with Italy, which at the

same time reports 27,980 cases and 2,158 deaths.

Technology’s contribution to pandemic management goes beyond tracking and quarantines. As the US and countries in Europe move toward near-complete lockdown, with potentially disastrous consequences for the world economy, technology offers a glimmer of hope.

Many firms, especially in tech, have closed their offices, mandated that employees telecommute, and provided them with computing and video technology to work remotely. Not only does this keep an important part of the economy going, but it also has had unintended positive consequences. Vehicle congestion, for example, has vanished.

The hours harried commuters previously lost in traffic can now be dedicated to work and family. Corporate travel is disappearing, and video conferences are the new norm, with associated reductions in airplane pollution and huge savings in time.

Likewise, educators at nearly every level are scrambling to find online alternatives to in-classroom instruction.

Whereas in earlier times, school closings would have implied loss of instruction time, technology is allowing students to continue learning.

And the current crisis will advance that process, as a relatively modest group of early

adopters in producing online courses is joined by whole universities that have been forced to move to the web.

Obviously, there are challenges to adapting a curriculum intended to be taught in person to the online setting. But with entire faculties experimenting, we are certain to see innovation and rapid improvement in the effectiveness of distance learning. Once students finally return to the classroom, we should continue to leverage these innovations, not only in the developed world, where necessity has forced our hand, but also in developing countries hungry for cost-effective education.

In the retail sector, digital platforms can fill the gap when supermarket shelves empty or self-quarantine makes in-person shopping impossible. And film and music streaming, video chats, and social media have offered avenues to reduce isolation, stay connected, and preserve mental health while locked down.

In these and other ways, the pandemic is accelerating existing technological trends and revealing important benefits, which we should embrace, both now and after the crisis abates. But when normalcy returns, we are also likely to confront once again some tough questions about technological innovation.

The COVID-19 crisis has revived the tension between pri-

vacy and effective targeting. In recent years, we often encountered this debate with respect to major tech platforms using granular information about users to deliver micro-targeted news and advertising. But the same kinds of technology have been used to identify those infected by or most vulnerable to the coronavirus.

Of course, the tension between privacy and health out-

Pinelopi Koujianou Goldberg

COVID-19 REMINDS US THAT WE MAY WANT TO THINK CAREFULLY ABOUT THE RELATIVE BENEFITS OF DATA SHARING, AS THEY MAY SOMETIMES DOMINATE THE VALUE OF PRESERVING PRIVACY.

comes is not new: the desire to protect individual histories prevents medical researchers and clinicians from mining the full set of health data to achieve better outcomes.

COVID-19 reminds us that we may want to think carefully about the relative benefits of data sharing, as they may sometimes dominate the value of preserving privacy.

Absent intervention, technological trends will inevitably generate winners and losers.

Brick-and-mortar stores that were already losing market share to digital platforms are likely to be decimated wherever self-quarantine and mandatory lockdowns are in effect.

And though increased telecommuting, reduced business travel, and distance learning will increase productivity for some, they are significantly disrupting the livelihoods of others, and that disruption will accelerate in the next few months.

So, more than ever, it will be imperative to provide support and adjustment assistance to individuals, firms, or entire communities hit by the crisis.

But we should resist the urge to resume our relentless, if fashionable, tech bashing. If there is a silver lining in the current crisis, it is the realization that knowledge – primarily math, science, and technology in this case – is our best weapon.

THEBUSINESS24ONLINE.COM |

FRIDAY MARCH 20, 2020

|

17

18

|

F E AT U R E

FRIDAY MARCH 20, 2020

THEBUSINESS24ONLINE.COM

“Compliance Police” – Demystifying the concept or perception of fault finding

BY OBU NARTEH AMOAH The name “Police” has been used in many firms as a negative name tag for compliance professionals. In some organisations staff are afraid or careful of what they say when a compliance professional is present. In my earlier career in compliance, a Branch Manager verbally queried an officer for talking about an issue at office kitchenette while the I was present. Some conversations literally come to a still once a compliance officer appears. This may reflect some lack of trust or being caught inadvertently for some unknown breach.

This article seeks to provide solutions to building trust and strong relationships in seeing compliance professionals as business partners with a common goal of achieving the firm’s objective.

Compliance simply means “to adhere “, and/or “to obey”. A Compliance function could be summarized into two key areas being External and Internal Compliance; External Compliance External Compliance activi-

ties focus’ on ensuring Laws, Legislations, Regulations and any enactment from governments or quasi government authorities (e.g. industry regulators like Bank of Ghana, Insurance Commission, National Communication Authority etc..) that impact the activities of a firm to be adhered to. This requires having a catalog or register of critical enactments that the firm needs to comply with and monitoring that it is done. Typical examples include taxation, environmental laws, Company Act provisions, District Assembly laws, Bribery Acts (UK), FCPA(US), Data Protection Laws (e.g. Act 843 (Ghana) or the GDPR (EU)), a host of laws depending on the industry and jurisdiction of operations.

In recent times, there has been some international laws or country laws with extra territorial arms. These laws although are for specific countries, it may apply to companies with operations outside borders of the country. This means breach of such laws in other country can be traced and sanctioned. The UK (Bribery Act) and the FCPA (US), both laws requires that,

crimes under the law committed by their native companies anywhere in the world is punishable using the extra territorial arm of the law. This is the reason Airbus could be fined by SFO for £ 3.5 billion for bribery infractions outside the UK. Breach of external compliance regulations may have significant negative impact both financially and reputationally on firms. It must be noted that corporate legal functions are critical stakeholders in the management these external requirements from governments other bodies.

Internal Compliance Following from external compliance requirements, corporate bodies in searching for best fit solutions to embed these external requirements into their ways of working to deliver automatic adherence to rules. This quest led to the formation of Company Policies, Standards and Process which simplify complex laws into company documents like Human Right/Resources Policy, Anti Bribery Policy, Anti-Money Laundering Policy, Data Privacy Policy, Code of

Conducts, Breach standards etc.

The work of the compliance professional therefore is a herculean task which requires protecting the corporate reputation and resources of a firm by working through other persons (all staff ) to deliver a compliant and ethical company, thus doing the right thing always. When the right is not done then enforcement(sanctions) of policies must be ensured.

The Case: This makes the work of the Compliance Professional akin to that of the policeman with the power to investigate, hold staff or people accountably and enforce the laws and policies of state. The compliance work involves extensive investigation into policy or process breaches and monitoring disciplinary processes even till the application of sanctions to offending.

It therefore no surprise that through my professional career in compliance I have been referred to as Pro-Police (Procredit Compliance), Diageo Police and now Contracta Police. Colleagues in other in-

dustry also have similar tags on them. This name tagging is generically not bad as it instills some form of discipline.

When a policeman stands at the traffic light, its difficult for a driver to jump the traffic hence adherence is achieved.

But when a compliance officer behaves like a policeman who hides at the corner of the traffic and is lurking for offending drivers then the compliance role turns into the negative form of policing.

As compliance professionals we need to have an excellent stakeholder management skill that allows as to engage with our stakeholders in a riskbased manner to understand their challenges and work together to find the best fit solution that effectively manages or eliminate identified risk. …to be continued

The writer is a Chartered Accountant with extensive expertise in multinational compliance and risk management program development and imbedding. He does compliance consultancy to SME’s. He is a member of Alliance for Integrity Working Group on Capacity Building. He can be reached via obunart@gmail.com .

What COVID-19 Means for International Aid

BY ARVIND SUBRAMANIAN We are still in the early stages of dealing with COVID-19.

Yet, it is already clear that this new coronavirus will have long-lasting effects on the global economy, how we deal with pandemics, and perhaps even the architecture of international aid. This is because the COVID-19 pandemic is putting the spotlight on one of the less-noticed distortions of the international aid system: it does exactly the opposite of what the evidence requires.

To understand why, we need to distinguish between two kinds of aid. Traditional country lending seeks to improve outcomes in individual developing countries, while financing of global public goods (GPGs) aims to improve global welfare. The latter includes the development of technologies to promote agricultural productivity, actions to prevent climate change and mitigate its impact, knowledge creation, information provision, and, of course, preventing and dealing with pandemics.

Donors therefore need to decide how to allocate their funds between these two types of aid. Clearly, this decision should be informed by research regarding the relative effectiveness of country lending and financing of GPGs.

The evidence concerning country lending is highly contested, with diehard aid skeptics in the tradition of Lord Peter Bauer, Milton Friedman, Angus Deaton, and Bill Easterly opposed by equally strong advocates such as Jeffrey D. Sachs, Bill Gates, and Bono.

A fair reading of the evidence would be that even if aid skepticism is overdone, it is hard to find compelling evidence that country lending has substantial long-term benefits.

(This is also the conclusion that Raghuram G. Rajan and I reached in a series of papers on the impact of aid).

On the other hand, financing GPGs is incontrovertibly beneficial. For example, the activities that led to the green revolution – not only the initial discoveries but also their subsequent adaptation by a network of publicly funded agricultural research institutes around the world – yielded substantial global returns. So did the eradication of smallpox. The financing of advance market commitments that guarantee returns for pharmaceutical companies making important medical discoveries – an idea associated with the Nobel laureate economist Michael Kremer – is another example of an invaluable GPG. But despite the clear balance of evidence, an overwhelming proportion of aid is devoted

to country lending, with only a fraction allocated to financing GPGs. Although there are no definitive estimates, Scott Morris at the Center for Global Development says that only 15-25% of the World Bank’s overall lending portfolio is devoted to GPGs. And even on a generous interpretation of what constitutes a GPG, that share would rise to only 35%.

Moreover, this proportion is even smaller in the case of the world’s poorest countries: The International Development Association, the World Bank’s concessional-lending arm, directs only 11% of its funding to regional and global public goods.

What about other major donors? We do not know the share of funding that private philanthropies such as the Bill & Melinda Gates Foundation, which have become important international players, allocate to GPGs. But we do know that the most significant recent entrant to the aid-giving club – China – is devoting almost all its resources under the Belt and Road initiative to financing infrastructure in borrowing countries, and not to GPGs. It is not difficult to understand why the allocation of international aid is so skewed in favor of country lending. This is a conspiracy in which there are perpetrators but no appar-

ent crime.

For starters, donors love to wield the power that comes with lending directly to developing countries and dictating priorities aligned with their own preferences. And recipient governments are equally complicit; after all, more cheap financing means more spending, which is always helpful to political incumbents.

By contrast, the gains from financing GPGs are nebulous, distant, and not clearly traceable to donor actions. For borrowing governments, too, the choice between cheap cash today and uncertain benefits down the line is a no-brainer.

These distortions have always been a problem. But as the COVID-19 pandemic has made abundantly clear, the need for GPGs is proliferating, and private markets will by definition not finance them.

To get a sense of the magnitude of resources required, consider the recent estimate

by Princeton University’s Ashoka Mody that Italy will need about $600-800 billion in external assistance to help it respond to its coronavirus calamity. And this is just the amount needed to combat one global public “bad” at one point in time in one relatively rich country.

In a world of infinite resources and unbridled goodwill

and generosity, donors could always ramp up financing of GPGs without reducing country lending. But in the real world, the envelope for giving is shrinking – meaning that distorted allocation incentives will have serious consequences.

The message for the international donor community – not just traditional lenders such as the World Bank, but also emerging actors such as private foundations and China – is clear. The aid architecture needs a radical revamp so that massive amounts of money, possibly hundreds of billions of dollars annually, can be devoted to global public goods.

And some of this will have to be financed by reducing existing country lending.

By bringing practice into line with the evidence, the world could start addressing the massive challenges of the future in a serious way. Like today’s COVID-19 pandemic, these challenges will be devastatingly contemptuous of national borders and nativist governments.

Arvind Subramanian, a former chief economic adviser to the government of India, is a non-resident senior fellow at the Peterson Institute for International Economics and a visiting lecturer at Harvard’s John F. Kennedy School of Government.

THEBUSINESS24ONLINE.COM |

FRIDAY MARCH 20, 2020

|

19

20 |

FRIDAY MARCH 20, 2020

THEBUSINESS24ONLINE.COM

Golden Star aims to secure critical supplies over COVID-19 concerns erations have been identified and suppliers have been asked to provide an update on their ability to continue to supply Golden Star’s requirements,” the company said in a statement.

“Mitigating controls for items with a higher risk profile include temporarily increasing safety stock levels and identifying alternative sources of supply. We continue to monitor the situation as the pandemic evolves and remain in regular contact with our key suppliers.”

The company said in February it had extended its hedging programme adding 12,600 oz to its existing forward sales plan in order to protect revenue for Prestea. The company now has gold price protection in place for 45,933 oz at an average floor price of $1,427/oz and an average ceiling price of $1,816/oz.

The initial period of the hedge was from August 2019 for a year, but it has now been extended to the end of 2020. www.miningmx.com

Golden Star Resources says it had moved to secure supplies that will be crucial in keeping the firm’s gold mining operations running smoothly amid the COVID-19 outbreak, the UK-headquartered said in an update today.

This follows the first cases of COVID-19 in Ghana where the company operates two mines, the Prestea and Wassa, operations which have targeted gold production of between 190,000 to 210,000 ounces of gold for the firm’s 2020 financial year.

It said none of its employees had been so far infected

by COVID-19, but that it was working to “… mitigate the possibility of disruption at the mining operations”. It had also rolled out an action plan aimed at limited the spread of the virus including travel bans, implementing self-isolation for employees who have travelled internationally, and improving hygiene levels in the company’s operations and offices.

“Supplies critical to the op-

Goldfields assesses stocks amid Covid-19 Swiss gold exports plunge as shipments to China collapse

Goldfields Limited says they are currently assessing stocks of critical input materials in their mines before they add to supplies if possible. This measure is being done in the wake of the Coronavirus (COVID-19) pandemic.

Against the backdrop of the COVID-19, Goldfields Limited has adopted a range of risk mitigation strategies amid the escalating pandemic in all our operating countries, a statement from the organization noted.

“Our mines continue to operate as normal to date. We are guided by the principle of prioritising the safety and wellbeing of our people and would

not hesitate to act should their health be at risk.

We have put numerous measures in place, both at our mines and at our offices, to avoid potential infections and to ensure that any disruptions at our operations are limited”.

Among the measures introduced include strict adherence to country-specific regulations, government decrees and protocols, as and when issued.

There is also appropriate management structures and protocols which have been activated at Group, regional and mine level, as well as a comprehensive hygiene awareness campaigns at all offices and

mines.

Imposition of indefinite business travel bans for all company employees and self-quarantine for employees returning from holiday and limiting visits by international consultants and service providers to our offices or mines Self-quarantine for any employees displaying flu-like symptoms and social distancing of employees, where practical as well as establishing quarantine facilities at our mines.

The company also maintained that it will review the situation at regular intervals to decide on further actions if required.

Swiss exports of gold fell to the lowest since at least 2012 in February as shipments to top consumer China all but halted, customs data showed on Thursday.

The plunge in trade came as China fought to contain an outbreak of coronavirus by shutting down the movement of people and goods. The virus has since spread worldwide.

Switzerland -- a major trading, vaulting and refining centre for precious metals -- shipped 2 tonnes of gold to China in February, down from 17 tonnes in January.

The shipments were the lowest since May 2014.

Shipments to Hong Kong fell to just 10kg, the lowest since monthly data became available in 2012, from 23.6 tonnes in January.

In total, Switzerland exported 42.7 tonnes of gold in February, less than half the 87.4 tonnes shipped the previous month. Exports to India, the second biggest gold consumer after China, held up better at 9.6 tonnes in February, up from 8.5 tonnes in January.

India has so far been less affected by coronavirus.

Reuters