Business24 Newspaper - 16th September 2020 by Business24 Online

THEBUSINESS24ONLINE.COM

NO. B24 / 101

NEWS FOR BUSINESS LEADERS

WEDNESDAY SEPTEMBER 16, 2020

Mexican nominee to WTO top job pledges to prioritise Africa

COVID-19 test at Kotoka Airport: 'No Payment, No Entry' policy deferred Story on page 3

GIPC boss backs reforms to improve ease of doing business Dr. Jesús Seade Kuri

Story on page 3

Phase one of new Takoradi port terminal to be completed by Sept. 2021 By Patrick PAINTSIL

Yoﬁ Grant believes Ghana remains attractive for investors despite its fall on the Doing Business rankings last year.

Story on page 2 Ghanaian businesses need support to 'win' under AfCFTA—AGI

Dr. Felix Nana Sackey, Group CEO, Ibistek Group

Story on page 5

Inside INTERNATIONAL MARKET

ECONOMIC INDICATORS *EXCHANGE RATE (INT. RATE)

Story on page 5

USD$1 =GHC 5.6734*

BRENT CRUDE $/BARREL

*POLICY RATE

14.5%*

NATURAL GAS $/MILLION BTUS

GHANA REFERENCE RATE

15.12%

GOLD $/TROY OUNCE

OVERALL FISCAL DEFICIT PROJECTED GDP GROWTH RATE AVERAGE PETROL & DIESEL PRICE:

11.4 % OF GDP 0.9% GHc 5.13*

$39.80 1.79 1,842.40

CORN $/BUSHEL

329.50

COCOA $/METRIC TON

$2,620

COFFEE $/POUND:

$109.65

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NEWS/EDITORIAL

WEDNESDAY SEPTEMBER 16 2020

EDITORIAL

Pay before boarding order deferral commendable 1

Wash your hands 2

he deferral of the new directive for all passengers to pay for their COVID-19 test online before their arr ival at Kotoka International Airport to allow for further consultations is commendable. At a time when passengers are still coming to terms with the US$150 GH¢900 mandatory payment for COVID-19 test upon arrival at KIA, the new directive generated more debate. The Ghana Airports Company Limited, after a meeting with international airlines operating in the country, has now deferred its implementation.

Cover your cough 3

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passengers, at a cost of US 150 or a flat rate of GH¢900. However, the inability of a small number of arriving passengers to pay for the COVID19 antigen test upon arrival made GACL and Frontier HealthCare—the company in charge of the testing—decide to enforce an online payment policy.

After the crunch meeting held on Tuesday morning, the GACL h a s d e f e r r e d t h e implementation of the policy to Monday, September 21, and has The new directive was, allowed for other payment however, described by airlines options including cash. as detrimental to the renewed Ghana reopened its air border efforts to stimulate demand for for international flights on air travel, given that cash September 1 and has instituted a p a y m e n t r e m a i n s t h e compulsory testing regime upon predominant mode of payment arrival for all international for most Ghanaian travellers.

GIPC boss backs reforms to improve ease of doing business CONTINUED FROM COVER

Wear a mask

The policy, which was to come into effect on Tuesday, September 15, required all inbound passengers to pay online for the mandatory COVID-19 test at Kotoka International Airport prior to boarding their flights.

he Chief Executive Officer of the Ghana Investment Promotion Centre GIPC , Yo f i G r a n t , i s b a c k i n g government s business regulatory reforms programme to help reverse Ghana s decline on the World Bank's Ease of Doing Business Index. Mr. Grant told Business24 while government has over the years embarked on extensive reforms to improve the ease of doing business, the business regulatory reforms programmes being championed by the Trade and Industry Ministry should put Ghana among the best countries in Africa to do business. Ghana dropped down four places on the Ease of Doing Business Index last year. The country ranked 118 out of 190 countries surveyed by the Bretton Woods institution. This year s rankings are yet to be released. “ We h a v e t h e B u s i n e s s Regulatory Reforms programme that focuses on the ease of doing business indicators and works through them. But we are more

strategic, as we don t change admini st rative notice s and them indicators because we directives. need to. We change them because of what the overall plan is. And Hub for investment also, we do significant Despite Ghana's slide on the consultation before we change Doing Business rankings, Mr. these indicators,” he said. Grant was confident that T h e B u s i n e s s Re g u l ato r y government s quest to make Reforms Programme, which Ghana the ideal place to invest commenced in 2017, includes a will not be negatively impacted. comprehensive roadmap for He stated that the ranking only reforms to reduce the time and seeks to me asure reforms cost of compliance with business undertaken by countries in the regulations. previous year, and as such may It also consists of a Centralised not reflect reforms undertaken Public Consultation Portal, which outside the period under review. was recently launched, to enable According to the GIPC CEO, government institutions while other countries in the subtransparently receive inputs and region have struggled to attract comments on their policies and foreign direct investment in the regulations from a diverse range wake of the COVID-19 pandemic, of stakeholders, including small Ghana attracted at least US$400m and medium-size enterprises in the first half of the year. SMEs owners, business But for the pandemic, FDI to executives, professionals, the country would have topped at consumers, workers, and the least US$5bn for the first six public. months of the year alone, he said, The portal also provides an considering major projects such electronic registry of business as Accra Marine Drive and the regulations, consisting of an Trade Fair redevelopment project inventory of all business-related – all of which have been put on acts, legislative instruments, and hold indefinitely.

News

WEDNESDAY SEPTEMBER 16 2020

COVID-19 test at Kotoka Airport: 'No Payment, No Entry' policy deferred By Dominick Andoh Koﬁ.pra@gmail.com

he Ghana Airports Company Limited, after a m e e t i n g w i t h international airlines operating in the country, has deferred the implementation of the “No Payment, No Entry” policy for all in-bound passengers. The policy, which was to come i n t o e f f e c t o n T u e s d a y, September 15, required all inbound passengers to pay online for the mandatory COVID-19 test at Kotoka International Airport prior to boarding their flights. After the crunch meeting held on Tuesday morning, the GACL

has deferred the implementation of the polic y to Monday, September 21, and has allowed for other payment options including cash. Ghana reopened its air border for international flights on September 1 and has instituted a compulsory testing regime upon arrival for all international passengers, at a cost of US$150 or a flat rate of GH¢900. However, the inability of a small number of arr iving passengers to pay for the COVID19 antigen test upon arrival made GACL and Frontier HealthCare the company in charge of the testing decide to enforce an online payment policy.

The new direc tive was, however, described by airlines as detrimental to the renewed efforts to stimulate demand for air travel, given that cash payment remains the predominant mode of payment for most Ghanaian travellers. Ghana's COVID-19 testing protocol An arriving passenger must not have symptoms suggestive of COVID-19, with body temperature not exceeding 38 degrees Celsius. The passenger is also required to possess a negative PCR test result, done at most 72 hours before departure, from a certified lab in the country of embarkation. Upon arrival, passengers who

were unable to pay online will join a queue to pay US$150 for the COVID-19 test at the payment centre at the Upper Arrival section of Terminal 3, and then proceed to the sampling cubicle for their samples to be taken before descending to the main arrival hall. At the arrival hall, passengers will be screened at one of the Port Health stations and the results of their COVID-19 tests made known to them. Arriving passengers who test negative will then proceed to immigration and to baggage claim for their luggage and then exit the terminal. Positive cases will receive further clinical assessment and treatment.

Mexican nominee to WTO top job pledges to prioritise Africa CONTINUED FROM COVER By Nii Annerquaye Abbey

former Deputy DirectorGeneral of the World Trade Organisation WTO and Mexico's nominee for the top position of the global trade institution, Dr. Jesús Seade Kuri, has promised to put Africa at the center stage of his leadership should he be voted to lead the organisation. Dr. Kuri, in an exclusive op-ed published in the Business24, did not only recount his long experience working in various capacities in multilateral agencies serving the needs of the continent, but promised to ensure the selection of his deputy from Africa, preferably a female. “I will make every effort to ensure Africa has a possibly female DDG, so that we have not one but two senior officers who

are familiar with Africa at the top of the organisation,” he said. The Mexican nominee is part of an eminent list of eight persons vying for the position of the Director-General of the WTO, which was left vacant by the retiring Roberto Azevêdo last month. The list includes two nominees from Africa, Nigeria s Dr. Ngozi Okonjo-Iweala and Kenya s Ms. Amina C. Mohamed. The time frame for the election is yet to be decided, but the WTO head is chosen by consensus by its 164 member states, based on a re c o m m e n d a t i o n f ro m i t s selection committee. The winning candidate faces a myriad of problems, chief among them the fallout of the C OV I D -1 9 p a n d e m i c , w i t h countries seeking to protect their industries more than opting for free trade. Dr. Kuri, who was a founding

Deputy Director-General DDG of the organisation, said his chosen African deputy will lead on development, an area that will be given the prominent role it deserves in the organisation, with particular attention to the issues of interest to the Least Developed Countries. “Also, I fully commit to lead a change of culture so that at all levels in the Secretariat and in the work pro gramme, we advance the geographic and gender inclusiveness of the organisation while engaging more fully with anglophone, francophone and lusophone Africa.” Working in Africa According to Dr. Kuri, his first stint outside academia was at the World Bank, International Monetary Fund IMF and WTO, where he did extensive work in

DR. Congo and Morocco. He wrote that, in each of those positions, he elected to continue to work on and for Africa, leading over twenty visits to more than a dozen countries in all the language regions of the c o n t i n e n t , a n d d e l ive r i n g financial support or technical assistance in a wide range of issue areas—from trade policy and customs management through tax reform and budget systems. “Fully taken by the wonder of Africa, the scale of its problems, the freshness of its people, and the beauty of its music and art, I worked with and befriended many people, including Ministers, their staff, as well as foreign experts and donors. This gave me a deep insight into the different countries economies, politics, cultures, and societies,” he said.

WEDNESDAY SEPTEMBER 16 2020

News

WEDNESDAY SEPTEMBER 16 2020

Phase one of new Takoradi port terminal to be completed by Sept. 2021 By Patrick PAINTSIL

he first phase of the new multi-purpose on-dock container terminal at the Takoradi Port, which is being undertaken by wholly-owned Ghanaian firm Ibistek, will be completed by the third-quarter of next year, the projec t implementer has said. The first phase of the project involves the construction of 600 metres of quay wall, out of a project total quay length of 1,700 metres over a 62-hectare surface area. The terminal will have deep berths that will be able to accommodate vessels that carry containers up to 19,000 TEUs Twenty-Foot Equivalent Units . The facility is expected to

attract diverted container traffic, particularly from the Port of Tema and other neighbouring ports such as Lom and Abidjan, which is estimated to reach in excess of 33,000TEUs by 2040. The expansion work has also been tipped to reposition the Takoradi Port to provide the needed support to the burgeoning oil and gas services industry in the western end of the country, and also advance socio-economic activities and livelihoods of people within the port s enclave. Dr. Felix Nana Sackey, Group Chief Executive Officer of Ibistek Group, who disclosed this to journalists in Accra, said the project was born out of the company s vision to play a key role in big-ticket port

infrastructure development, an area that has been mostly reserved for foreign multinationals in all port countries across the continent. “We believe that there is risk involved, but we also believe that we have neutralised most of the risks based on our research and review of the port industry—because we have the capacity to manage,” he added. Dr. Sackey attributed the success of the project to the support of key stakeholders, specifically the Ghana Ports and Harbours Authority GPHA , whilst asking government to build the needed ancillary infrastructure to realise the expected benefits of the project. “So far GPHA has been very cooperative and we ve been

working together very well on the project itself. But in terms of the ancillary infrastructure, we will need the support of the government when it comes to road infrastructure, especially if we w a n t t o ro p e i n t h e landlocked countries,” he said. Human Resource Manager for Takoradi Port Peter AmoBediako said the terminal will enhance operations at the port “The new terminal gives us the leverage to att rac t larger volumes of cargo and to be able to handle it efficiently. It will also help to improve vessel turnaround time, reduce the cost of doing business at the port as well as boost government revenue from the Takoradi Port, as prescribed in the port s master plan.”

Ghanaian businesses need support to win under AfCFTA—AGI By Eugene Davis

usiness setbacks such as high cost of power, access to capital, among others, remain a concern for Ghanaian industries, and if government wants to “win” with the African Continental Free Trade Area AfCFTA , it needs to ensure businesses are supported to become competitive, the Accra Regional Chairman of the Association of Ghana Industries AGI , Tsonam Cleanse Akpeloo, has said. Government has provided several interventions by way of stimulus packages under the Coronavirus Alleviation Programme. However, the AGI reckons more assistance needs to be provided to sustain businesses when the AfCFTA takes off. The Secretariat of AfCFTA has officially opened in Accra, a major milestone in the full implementation of the free trade agreement. Trading under the AfCFTA, which was originally planned for 1 July 2020 and delayed because of the COVID-19 pandemic, will now begin in January 2021, according to the African Union. Speaking in Accra at the launch of the upcoming 4th Trade and Finance conference, dubbed “The AfCFTA edition”,

Tsonam Cleanse Akpeloo says government should operationalise policies to give local businesses an edge ahead of the start of the AfCFTA.

Mr. Akpeloo said “We are very thankful for the government for having the secretariat here, and to be fair, government has also reduced the cost of power somehow but we are asking for further reduction to be competitive across the continent. For us to win, we need to operationalise the many policies that we are talking about.”

According to him, Ghana has competitive advantage in many economic sectors that should enable it succeed with the AfCFTA. “Clearly, if you take the salt industry, both the petrochemicals and domestic users need salt. Ghana and Senegal are one of the two biggest producers of salt on the continent. In areas like

electricians, metal work and others, Ghana clearly has competitive advantage but it is not enough to have competitive advantage. You need to have systemic pro grammes and policies that allow you to harmonise and become a leader in this space. We are saying industry needs to be supported greatly by government to take advantage of this.” The upcoming conference is in partnership with the Accra Metropolitan Assembly AMA , and the mayor of Acc ra, Mohammed Adjei Sowah, is hopeful the city will be ready for activities that come with the implementation of the AfCFTA. “Accra remains the main trading and commercial centre of this country, and over the years we have been striving to make it the gateway to Africa. It is this sort of orientation that inspired the President to spearhead the location of AfCFTA in Accra, and we need to take full advantage of this,” he said. The Ghana International Trade and Finance conference takes place from October 27-28 this year. It is expected to focus on tariff reforms, physical connectivity, infrastructure, port harmonisation, a single continental digital platform, and a cyber-security platform.

WEDNESDAY SEPTEMBER 16 2020

Insurance

WEDNESDAY SEPTEMBER 16 2020

Will Insurance Companies Pay Death Benefit If Someone Is Murdered By Elsy Addy

ife Insurance is a very important policy taken to protect the family. Many people take life insurance so that in the case of any unfortunate event such as death or critical illness the dependents or the family members of the policyholder can be financially secure. Anytime a life insurance policy is taken, it is required that someone or a number of persons are named as beneficiaries, these persons may be spouse, children or other close relatives. This means that, when death occurs the policy proceeds money are expected to be paid to all named beneficiaries. Whether or not the Insurance Company will pay the insurance claim for murder is dependent on: â&#x2014;? Whether the claimant is a named benefic iar y of the murdered person s life insurance â&#x2014;? Whether the claimant is not suspected or convicted of the murder. Insurance Companies generally pay out claims when the death is a result of murder, however if the beneficiary is suspected or convicted of murder, payment will not be made. There are several cases globally where the spouse or children kill with the intention of benefiting from Life Insurance. Once there is sufficient proof that the claimant orchestrated or is connected to the murder, s he will be denied the claim. The Insurance Company will only pay if the beneficiary is not the murderer of the insured and it has been determined that someone else committed the murder. Usually when death occurs claims are processed speedily to provide relief to the family as they grieve, but in the case of murder all persons associated with the insured would have to be thoroughly investigated and proven beyond reasonable doubt that, they are innocent before the claims are

paid. This may prolong the claim processing period. The main objective of the Insurance Companies is to pay legitimate claims promptly, but when there i s s u s p i c i o n o f f r au d o r deliberate means to murder someone and benefit from the Insurance Company, detailed investigations are conducted before claims are paid or repudiated rejected . With Insurance policies it is important for people to be completely honest and transparent from the beginning, if not beneficiaries of the policies will be denied the benefits, even if premiums have been paid for a long period of time. The next question anyone would ask is death is termed in an insurance contract? Is it

natural or accidental death? Natural death may be health related. This occurs when a policyholder dies of any medical condition or because of a disease resulting in death. This type of death is covered by the life Insurance policy. Accidental death means any death which is occurring strictly due to an accident which excludes acts of war, death because of involvement in illegal activities as defined in the laws of the land i.e. drinking and driving , involvement in hazardous hobbies like motor racing, scuba diving, suicide generally not covered during the first two years after the policy is issued, but if suicide occurs after two years of taking the insurance policy, claims are paid . This

means the Company right to investigate the de ath and obt ain information such as toxicology report and records.

has the cause of cer t ain autopsy, medical

Everyone deserves the right to live and nobody should deny a family of that with the aim of getting insurance benefits. Insurance Companies will pay death benefits to named beneficiaries if there is no evidence suggesting beneficiaries are connected to the murder. Also remember to read your policy document when you buy one. Life Insurance always protects your family from financial stress, so take action and get the right kind of life insurance policy for your family if you do not have one.

WEDNESDAY SEPTEMBER 16 2020

Advertorial

WEDNESDAY SEPTEMBER 16 2020

Official launch of MS staffing (an HR Consulting firm & a member of BforB Ghana)

any small and medium sized businesses treat HR much as they may treat safety The day – to day p re s su re s o f r u n n i n g t h e organization may cause them to neglect even the basic steps that keep them in compliance and when an issue does ignite, they are forced to scramble. There is a lot to navigate so SME s need robust HR support to provide strategic input, tactics and plans for employee management. MS Staffing has therefore designed support packages for SME s who are very cost conscious. MS Staffing offers HR solution to SME s both onsite and offsite at very affordable prices to ensure businesses comply with all HR legal issues, develop an engaged and productive workforce. This will leave the CEO to focus on other activities such as Strategies, Financing and Operations and its core business. This decision will move the business from trying to save money by managing the Human Capital by itself to trying to make money. MS Staffing is a human re s ou rc e s c o n su l t i n g f i r m located in Accra, Ghana. We provide HR services such as Recruitment, Talent Management, Payroll Management, Employee Relations and Training and Development. We are committed to meeting the needs of our clients in a timely and cost effective manner. Our goal is to offer our clients the option that best suits their needs, be it a short or long term assignment, or on a project or ad hoc basis and our research effectiveness, innovation, flexibility and professionalism make us an effective resource for your organization. We take the time to develop strong working relationships with our clients by understanding their business, their needs, and the company culture. With that understanding and with the knowledge and expertise gained from over 14 years of experience in human resources, we recommend solutions that align with business priorities and then support clients in implementation. We believe that the most

effective people management comes from well-developed HR practices being espoused and practiced by management in the day-to-day performance of their management function. We work with businesses to establish their HR c apabilities reviewing systems and processes. While we would be working with your business on a parttime basis, we work full time in HR and therefore bring a broader perspective and higher skill level to the benefit of your business. Services Ÿ

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Employee relations

Retained HR services package If you require an on-going HR support, our retained HR service will provide you with a cost effective solution. You will receive access to a fully qualified HR professional for any queries, or advice, by phone or email from 9-5pm Monday to Friday excluding public holidays . Our team will provide you with regular legal updates to ensure that you remain compliant. The retained HR service is designed to offer peace of mind in a reliable, professional package at an affordable monthly fee. Outsourcing your HR service means you have expert knowledge whenever you need it, whilst saving money. Choose our retained HR service to make managing HR in your business hassle-free. Ÿ

All changes to employee updates

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Reminders sent to managers of key dates e.g. probationary review due, appraisal due, end of fixed term contract

Quarterly reports on standards HR KPI s s i c k n e s s , t u r n o v e r, employee issues

Appraisal reports biannually and training needs assessed

Disciplinary investigation

Absence management according to company policy

On Demand HR If you require ad-hoc advice and support from an HR professional, then our on demand HR service is perfect for you. You contact us only when needed, and only pay for work undertaken at an agreed rate. Our flexible on demand HR service is a cost effective choice for very small businesses who may not be ready for their own full-time HR department. By choosing to work with us you receive the skills and expertise you need, without having to invest in staff you only need occasionally. What is different about MS staffing Ÿ

We are Proactive

We are strategic

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We simplify HR so that you focus on your business Benefits of engaging MS staffing Ÿ

Ensure that all policies, processes and procedure in your business are undertaken properly and adhering to all HR rules and regulations.

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We deal with all issues whenever they arise giving you much more flexibility.

We implement activities to help maintain employee motivation levels, enhance staff performance and ensure your employees are adding value to your company while retaining them at the same time.

We help employees to perform to their best ability through a prac tic able Performance Management System that will maximize employees potential.

With our support, your business will maintain a strong reputation in your industry whilst ensuring your company keeps on growing and developing in the future.

We d like to invite you to our upcoming launch on 21st September, 20 and it s an online event, we ll be honored to have you onboard for the day. If you d like to attend, kindly get in touch.

Authored by: Mrs. Margaret Titus-Glover Margaret is a certified HR Professional with over 14 years of combined experience in Human Resource Management. A creative thinker, problem solver and decision maker whose experience is in helping start-up businesses develop strong HR policies, procedures and processes. She is experienced in HR Strategy, Benefits Management, Recruitment and Retention S t r a t e g y, P e r fo r m a n c e Management, Orientation/On boarding Programs, Recognition P ro g ra m s , H R C o m p l i a n c e , Compensation, Employment Policies, Employee Engagement Initiatives and Professional Development. Are you a passionate small business owner and looking to expand or improve your HR capabilities and create a successful plan for growth and sustainability? Then MS Staffing is the right company for you.

WEDNESDAY SEPTEMBER 16 2020

Feature

WEDNESDAY SEPTEMBER 16 2020

e COVID Silver Linings Playbook By Mohamed A. El-Erian

he human tragedies and massive economic disruptions caused by COVID-19 have rightly commanded the attention of the public and policymakers for more than six months, and should continue to do so. But in managing the immediate crisis, we must not lose sight of the opportunities. The oft-quoted line about not letting a crisis go to waste has rarely been more relevant. For companies, governments, households, and multilateral institutions navigating this unsettling period, the basic task is the same to overcome pandemic-induced disruptions in ways that also emphasize the silver linings of the crisis. Now is the time to look to lock in trends and conditions that will reshape our society and economy for the better over the long term. With this overarching objective in mind, here are the top six silver linings that I see. The first is that we are living through one of the most exciting and promising periods of medical invention and innovation in history. While the immediate focus is rightly on COVID-19 vaccines and therapies, we should expect the research currently underway to p ro d u c e a h o s t o f o t h e r discoveries, many of which will yield significant, durable benefits. Moreover, the crisis is forcing us to confront a battery of complex issues concerning drug pricing and distribution, both domestically and globally, as well as the range of social and other inequalities that we have allowed to worsen. Second, deeper cross-border private-sector collaboration, often outside the purview of governments, is fueling this process of scientific leapfrogging. In mobilizing against the coronavirus, scientists around the world are sharing information like never before, and pharmaceutical companies are collaborating in unprecedented ways. These collective efforts are being supported by dynamic publicprivate partnerships, showing that this instrument of development can indeed be “win-win” when it is properly focused and there is clear

alignment. Third, the economic disruptions resulting from the pandemic have fueled multiple private-sector efforts to collect and analyze a broader range of high-frequency data in domains extending far beyond medicine. In the economics discipline, for example, there is a massive surge of interest in innovative new methods of measuring economic ac tivit y through granular high-frequency indicators like mobilit y s m a r t p h o n e ge o l o c a t i o n , electricity consumption, and retail traffic, as well as credit card usage and restaurant reservations. These metrics are now supplementing the official statistics compiled by governments, providing considerable scope for compareand-contrast exercises that can improve the quality and policy relevance of data-collection efforts. Fourth, the COVID-19 shock h a s r a i s e d o u r c o l l e c t ive awareness and sensitivity to lowprobability, high-impact “tail risks.” Suddenly, many in the private and public sectors are thinking more in terms of the full distribution of potential outcomes, whereas in the past they focused only on the most likely events. Policymakers have become more open to scenario analyses and the broader range of “if-then” conversations that such analyses elicit. In the case of climate change – a major risk that some wrongly perceived as a distant tail instead of a baseline – the sharp reduction in harmful emissions

during the current crisis has provided clear evidence that a new way is possible. And it is now widely accepted that governments have an important role to play in underwriting a durable and inclusive recovery. The door is open for more public investment in climate mitigation and adaptation, and there is a growing chorus demanding that the new normal be “green.” This speaks to a fifth silver lining. The pandemic has led country after country to run a series of “natural experiments,” which have shed light on a host of issues that go well beyond health and economics. Systems of governance and modes of leadership have come under scrutiny, revealing a wide divergence in their capacity to respond to the same large shock. These issues have not been limited to the public sector. Corporate responsibility has also been brought to the fore as company after company scrambles to respond to what was once unthinkable. And multilateral cooperation has been shown to be lacking, increasing the threats to all. Finally, the crisis has required many companies to hold candid conversations about work-life balance, and to devise innovative solutions to accommodate employees needs. There have a l re ady b e e n f a r- re a c h i n g changes in how we work, interact with colleagues, and consume goods and services, and only some of these are likely t o b e re ve r s e d a f t e r t h e pandemic has passed. The se six silver linings

constitute only a preliminary list of the opportunities offered by the pandemic. The point is not to discount the severity of the shock and uncertainty that have confronted the majority of the world s population. The pandemic has lasted much longer than many expected, and continues to leave tragedy and destruction in its path. But that is all the more reason to make the most out of our collective response. The challenge now is to expand and refine this list, so that we can seize the opportunities on offer and lock in more positive trends for the long term. By acting together, we can transform a period of deep adversity into one of shared wellbeing for us and for future generations.

Mohamed A. El-Erian, Chief Economic Adviser at Allianz and P re s i d e n t- E l e c t o f Q u e e n s ' College, Cambridge, was Chairman of US President Barack Obama's Global Development Council. He is the author, most recently, of The Only Game in Town: Central Banks, Instability, and Avoiding the Next Collapse. Copyright: Project Syndicate, 2020.www.project-syndicate.org

WEDNESDAY SEPTEMBER 16 2020

Feature

WEDNESDAY SEPTEMBER 16 2020

Trade as a tool for an eďŹ&#x192;cient recovery

By Jesus Gonzalez-Garcia and Yuanchen Yang

s economies now look for paths to recovery from the COVID-19 crisis, new evidence reaffirms that policies for more open and trade-integrated economies could signific antly benefit domestic competition and ultimately may help lower costs for consumers in emerging and developing economies. A recent Working Paper, b u i l d i n g o n t h e Re g i o n a l Economic Outlook chapter on competition, competitiveness and growth in Sub-Saharan Africa, examines the effect of trade liberalization using a large firm-level dataset covering about 400,000 firms in 83 emerging and developing economies from 2000 to 2017. The study also focuses on 29 nations in subSaharan Africa where greater trade integration led to significantly lower markups. Markups show the ability of firms to charge consumers above their costs and are indicators of market power. The more the competition, the less the market power and the lower the markups. Tariff reductions cause a significant decrease in markups in the manufacturing sector as it

typically faces strong competition from abroad. The information and communication technology ICT sector also experience important reductions in markups after tariff cuts, most likely due to lower costs for imports in a sector that requires large investments. This additional effect of liberalization on markups among ICT firms could be related to the relatively high capital intensity in this sector, as opening markets to more imports of capital goods may contribute to more competition in this sector and the reduction of markups of dominant firms. Overall, sectors with more import penetration have a stronger response to tariff reductions. Reducing tariffs lead to significant declines in markups of about 4 percent in the five years after trade barriers are reduced. In sub-Saharan Africa the decrease is also significant. Using sector-specific tariff rates, it is shown that 10 percent reduction in tariffs is associated with a 1 percent decrease in markups in the region. This study also found that when compared to other policy actions, trade liberalization appears to be a particularly potent tool for mitigating market power and has significant

synergies with real sector reforms. The findings support efforts currently underway to increase trade integration among e m e r g i n g a n d d e ve l o p i n g economies. The African Continental Free Trade Area, which was the subject of another Regional Economic Outlook chapter, as well as a recent IMF

Staff Discussion Note, will go into operation in January and is a historic opportunity to deepen trade and economic integration. The empirical evidence presented here should further strengthen the role of trade policy as a tool to boost efficiency as economies around the globe pursue strategies for recovering from the crisis.

WEDNESDAY SEPTEMBER 16 2020

Feature

WEDNESDAY SEPTEMBER 16 2020

Charting a path for a resilient recovery in sub Saharan Africa By By Kristalina Georgieva and Abebe Aemro Selassie

erhaps first among the many lessons of 2020 is that the notion of so-called black swan events is not some remote w o r r y. T h e s e p u r p o r t e d l y once-in-a-generation events are occurring with increasing frequency. Take climate-related shocks, especially in sub-Saharan Africa. More than any other region, it is vulnerable to these events because of its heavy dependence on rain-fed agriculture and its limited ability to adapt to shocks. Every year, the l ive l i h o o d s o f m i l l i o n s a re threatened by climate-induced disasters. As we all continue to grapple with the COVID-19 crisis, policymakers also need to look ahead. Countries need to ensure that the vast global fiscal support deployed to fight the pandemic also works to build a smar ter, greener and more equitable future. Nowhere is that more important than in sub-Saharan Africa. It is where the needs are greatest and also home to the world s youngest population, c re ating added urgency to act now to build forward better. Together, we need to chart a path to a more resilient recovery. Why resilience matters Our Regional Economic Outlook for sub-Saharan Africa published earlier this year highlights the lasting damage in the region from climate events. Over the medium term, annual per capita economic growth can decline an additional 1 percentage point with each drought. That impact is eight times worse than for an emerging market or developing economy in other parts of the world. Nelson Mandela once said “do not judge me by my successes, judge me by how many times I fell down and got back up again.” Given the increased frequency of shocks, building capacity to withstand them becomes essential to protect development gains. Take investing in a smarter, digital economy. In another chapter of the Regional Economic Outlookwe found that expanding internet access in sub-Saharan Africa by 10 percent of the population could increase real per capita GDP growth by as much as 4 percentage points. In other words, a recovery that raises resilience will not just save lives, but will also translate into higher living standards, better-quality jobs, and more opportunity for all. To achieve this, fiscal and financial policies need to prioritize investing in people, infrastructure, and coping mechanisms.

Empowering people Investing in healthcare and education can pay large dividends in terms of growth, productivity, g e n d e r e q u i t y, a n d l i v i n g standards. But investing in people is also critical for building resilience. People who are physically resilient spend less on extra medical care and, if they do fall sick, they return to work or school sooner. Of course, good health depends on good nutrition. When a climate shock hits, having access to enough safe and nutritious foodis essential to survival. And this is where better education on the impact of climate c h a n ge c a n h e l p c ou n t r i e s safeguard agricultural output. In Chad, for example, farmers are improving water retention through new rainwater harvesting techniques. Access to new technologies can help farmers and doctors. Sierra Leone launched a new drone corridor last November, the first in West Africa, to monitor agricultural conditions and enable rapid delivery of medicine. Better mobile phone networks mean better access to early warning systems and weather information even in the form of simple voice messages that enable more productive and climate-smart agriculture. But investing in people is more than just finding better ways to do existing jobs. It is also about carving out new jobs. Better jobs. It is therefore vital to invest in building digital skills. Our analysis shows that, on average, digitally-connected firms in the region employ eight times more workers, and create higher skilled, full-time jobs. Also, increased internet penetration is associated with a larger share of women working in the services sector the shift to more employment in services is two and a half times larger for women than men. Enhancing infrastructure Good infrastructure is the backbone of any healthy and resilient economy. However, in a region where large-scale infrastructure investments are already badly needed, there is an added premium on infrastructure investments that are smart, green and inclusive. While the pandemic seems set to accelerate sub-Saharan Africa s digital transformation, this won t happen by itself. It requires substantial investment in infrastructure both digital-friendly traditional infrastructure including more reliable electricity and digital-ready information technology infrastructure.

Almost all countries in the region, except just a few, are connected through submarine c a b l e s o r v i a c ro s s - b o rd e r terrestrial links. But more needs to be done to improve digital access within countries and to reverse the widening gender gap. At the same time, countries faced with the ravages of climate events need greater investment in weather-resilient infrastructure. For instance, Mozambique s Beira Port a major regional trade and transportation hub was operational within days of each of two consecutive cyclones thanks to extensive drainage systems and well-constructed buildings and roads. Digital and climate-resilient infrastructure can go hand-in-hand. One-fifth of sub-Saharan Africa s electricity is g e n e r a t e d f r o m hydropower which is susceptible to droughts so we need greater efforts to diversify electricity sources over the long run. This means moving towards other renewable energy sources, such as solar and wind power. This shift will help reduce carbon emissions, spread electrification, and create jobs. In Kenya, the government increased access to electricity from 40 to 70 percent of the population in large part through the use of small, off-grid, solar-powered energy plants. The added bonus is that the pay-as-you-go, mobile money model makes this initiative accessible and easy to expand, plus it created 10 times more jobs than in traditional utilities. Strengthening coping mechanisms Following a shock, social assistance and access to finance, among others, act as buffers that help people and businesses cope. They compensate for lost income allowing households to smooth consumption and buy essentials like food and make it possible for businesses to continue operating. A good example is Ethiopia s Productive Safety Net Program, which provides emergency cash transfers to food-insecure households. By requiring recipients to use bank accounts, the transfers are received quickly and financial inclusion has improved. Broadening access to finance for low-income households and small businesses helps them better cope during a shock. It also makes it easier for households to empower themselves by investing in health, education, and so on, and for businesses to invest in productive projects. Where digitalization supports

better policy design and better economic outcomes, it can be a win-win. Governments are also taking advantage of the region s leadership in mobile money to provide immediate support to households and businesses, while promoting social distancing. For instance, Togo s “NOVISSI” social protection program uses mobile money and elec tronic c ash transfers to support informal sector workers impacted by COVID-19. One thing is clear achieving a resilient recovery in sub-Saharan Africa, as elsewhere, will not be easy. For one, it will be expensive. Precisely estimating the costs is not easy given complementarities between investments in people, infrastructure, and policies. But it will certainly be in the hundreds of billions of dollars in the coming years. Meanwhile, of course, the COVID-19 crisis is taking a toll on the region s already limited fiscal space. And even before the crisis, most countries public debts were increasing rapidly. Second, it will require transformative reforms. Important as external support will be, it will be neither effective nor sufficient unless policy-induced distortions that stymie private investment are eliminated or public finance management systems improve. More domestic revenue mobilization will also be imperative something which digitalization can help by improving the efficienc y of collection. T h i rd , s u p p o r t f ro m t h e international community will be vital. Stepped-up debt relief, financing, and capacity development will all be needed. The IMF is supporting the recovery in sub-Saharan Africa access to enough safe and nutritious foodis essential to survival. And this is where better education on the impact of climate change can help countries safeguard agricultural output. In Chad, for example, farmers are improving water retention through new rainwater harvesting techniques. As we noted at the outset by invoking Nelson Mandela, getting back up after being knocked down is key. The fact is investing in a more resilient future will be more cost-effective than repeated rebuilding after crises or disasters. That should be the measure of today s success encouraging a more virtuous cycle and more resilient development path for the region.

WEDNESDAY SEPTEMBER 16 2020

News

WEDNESDAY SEPTEMBER 16 2020

Pension scheme for cocoa farmers to commence in October - COCOBOD CEO

he Chief Executive Officer CEO of Ghana Cocoa Board COCOBOD , Mr Joseph Aidoo, has announced that all is set to implement the Cocoa Farmers Pension Scheme for all cocoa farmers across the country in October this year. He said the National Pension Regulatory Authority NPRA would be the managers of the scheme, adding that the scheme would not only care for cocoa farmers when they retire, but would guarantee the sustainability of Cocoa production in the country as the youth would be attracted to cocoa farming. Mr Aidoo said this on Monday when he paid a courtesy call on m e m b e r s o f t h e We s t e r n Regional House of Chiefs to brief them of the achievements and challenges of COCOBOD and the way forward. He was accompanied by the Deputy Chief Executive in charge of operations of Cocoa, Dr Emmanuel Opoku and Directors and research Scientists from COCOBOD. The CEO said the implementation of the scheme was in fulfillment of President Nana Akuffo-Addo s promise to cocoa farmers in 2016. He said COCOBOD was set to

roll out a cocoa management system, which sought to access the Bio-data of Cocoa farmers. Mr Aidoo said the Bio -data would afford COCOBOD the oppor tunit y to streamline operations and cater for the welfare of farmers. He said under the system, COCOBOD would measure the acreage of each cocoa farm and that identification cards would be issued to farmers before they could market their farm produce, noting that payment to farmers would be made on their ID cards to avoid snatching of their money by armed robbers. The CEO said COCOBOD was committed to improve on the needs of the Cocoa farmer, hence the introduction of the P ro d u c t iv i t y E n h a n c e m e n t Programme to help boost productivity as well as the livelihoods of Cocoa farmers. He said the Cocoa industry had played a crucial role in Ghana s socio-economic development and remained an important source of employment and revenue generation for cocoa farmers.GNA Mr Aidoo mentioned the numerous nut r itional and medicinal values of Cocoa and e n c ou ra ge d t h e c h i e f s to patronize made in Ghana

chocolate and other cocoa products, which he stressed were good immune and nerves boosters in the elderly and IQ builders in children. He said, everything was being done to establish a cocoa processing fac tor y in the We s t e r n N o r t h R e g i o n specifically in Sefwi-Wiawso. The CEO noted that processing of Cocoa locally would not only add value to the Cocoa, but the waste from processing could be transformed into other products such as fertilizer. M r A i d o o w a s h owe ve r unhappy about the way some cocoa farmers were giving out their farms and lands to galamsey operators and called on the chiefs to help find a lasting solution to the situation.

He also expressed concern about the way forest reserves were allocated to galamsey operators to mine, this he noted would deplete the nation s forest, which would affect the rain fall pattern and cocoa production in the country. Touching on the black pod disease, the CEO said it was so disheartening that many cocoa farms were affected especially farms in the Western North Region, but added that his outfit was doing everything possible to curb the situation. He said COCOBOD had rolled out a number of measures including pruning of Cocoa trees, mass spraying and hand pollination to help fight the black pod disease.

CBG MD honoured at Ghana Development Awards

r. Daniel Wilson Addo, the Managing Director M D o f t h e Consolidated Bank Ghana CBG , has been awarded at the 2nd Edition of the Ghana Development Awards for his contribution towards growth and development in the banking sector. The award ceremony held every four years was by the Business Executive Limited in Accra to recognise hardworking institutions, personalities, and private sectors who had contributed to the development of the economy. A statement from CBG, copied to the Ghana News Agency, said a delegation from the Bank who received the award on behalf of

Mr Addo thanked the organisers for recognising his efforts.

promise to customers is absolute,” he added.

“It is with great pride we receive this award on behalf of our Managing Director and thank you for the recognition given him for something he is passionate about, making a business grow and viable. At CBG, our brand promise is We Stand With You and this is evident in the work of Daniel, hence this award,” it said.

The MD is said to have steered the Bank from inception to one of the top banks in Ghana, having put in place adept staff, technology, and processes that met Bank of Ghana regulations, as well as international standards.

Mr. Addo dedicated the award to the customers and stakeholders of CBG, who believed in the Bank from the beginning till date, the statement said. “Our cherished customers and stakeholders are the reason we are a solid bank. Our brand

As a bank committed to standing with all, it significantly contributes to various Corporate Social Responsibility activities for socio-economic developments in the country. Mr Wilson Addo, with over 24 years experience in the banking sector, has served in several roles in Standard Chartered Bank, United Bank for Africa UBA and First Atlantic Bank

Limited. At different times, he was Deputy Managing Director of UBA Ghana, Managing Director of UBA Tanzania and Executive Director of First Atlantic Bank, the statement said. He has been involved in bank start up and two bank turnarounds. With strategic insight and execution, Mr Addo delivers on exceptional business growth to create value. The MD has been instrumental in building trust in Ghana s banking sector and under his leadership, Consolidated Bank has made significant strides in t wo ye ars, the st atement noted.GNA

WEDNESDAY SEPTEMBER 16 2020

Intercity STC Coaches inks 5-year pact with Nacasky Company to deploy a robust Fleet Management System

ntercity STC, the Nation s premier Transport Company, h a s s i g n e d a f ive -ye a r contract agreement with Nacasky Company Limited for setting up a complete Fleet Management System for its outfit. The alliance between ISTC and Nacasky Company Ltd. will enable the two entities to work together to improve agility in operating out and mounting ISTC bus service levels of the future while improving returns on investment through technology-led transformation. The technology provider

company Nacasky is a wholly Ghanaian IT company with a focused approach in the emerging field of software solutions and sensor devices. Nacasky s scope of work in the contract includes ICT-based transport management solutions, including various modules such as admin module, ticket booking module, departure control module, account module, and reporting system, etc. To seal the commercial pact, Managing Director - Hon. Nana Akomea signed the document on behalf of ISTC, the CEO of

Nacasky, Nana Yaw Sarkodie Aboagye, endorsed it for his e s t a b l i sh m e n t . T h e p r i m e objective of the accord is to enhance STC s bus service levels and heighten the efficiency of its existing transportation system. The unification of ISTC and Nacasky will give new heights to the online bus transportation

system. One of the most prominent features of the Fleet management system is the online ticketing module. Now, the customer can purchase tickets online at their convenience and pay ticket charges through various payment options, like mobile money or by the bank.

Solidaridad, FDA collaborate to improve palm oil quality in Ghana

olidaridad, an international civil society organization, has partnered the Food and D r u g s Au t h o r i t y F DA to promote high quality food safety standards among artisanal palm oil producers. This effort will enhance market access for workers in the palm oil value chain as it will ensure that finished products meet both local and international market standards. U n d e r t h e p a r t n e r s h i p, Solidaridad, the Foods and Drugs Author it y, and the Environmental and Health Units of metropolitan, municipal and district assemblies in palm oilproducing districts will train 260 artisanal mill owners and over 3,000 machinery fabricators and processors in the last quarter of the year. It will also strengthen the capacity of environmental health officers in palm oil-producing areas. T h e F DA i s s t a t u t o r i l y mandated to work with the assemblies, particularly the Environmental and Health Units, to monitor and enforce standards for the preparation and sale of food products in the country. Solidaridad, on the other hand, through its Sustainable West Africa Palm Oil Programme, has been working to transform the oil palm sector in the country by promoting best management and milling practices. The collaboration will enable the FDA to strengthen the capacity of the assemblies to monitor and enforce standards

in the preparation and sale of palm oil. Moreover, Solidaridad s deployment of field officers in palm oil-producing districts will also make up for the FDA s lack of offices at the district level, which makes it difficult for the authority to reach palm oil processors in the districts. Under the partnership, a training programme, on food safety and good manufacturing practices in the palm oil production process would be held for workers in the value chain. It will cover topics such as hyg i e n i c s t e r i l i s a t i o n a n d digestion of the palm fruits, identifying food safety hazards during processing, the use of potable water for palm oil processing, waste handling, test management techniques, cleaning and siting of milling equipment, and personal hygienic of workers at the mills, among others. This effort will build on two t ra i n i n g p ro g ra m m e s t h at Solidaridad and the Food and D r u g s Au t h o r i t y r e c e n t l y organized at Boadua and Assin Fosu in the Eastern and Central regions of Ghana respectively for

staff of the Environmental and Health unit of the assemblies, the Business Advisory Centre, and Women in Agriculture Development of six district assemblies. According to Nicholas Issaka Gbana, Oil Palm Programme Manager for Solidaridad, a substantial part of Ghana s palm oil imports could be sourced locally from artisanal palm oil producers if they meet the quality requirements of both industrial users and palm oil exporters. The requirements, he explains, include palm oil with low free fatty acid below five per cent, low rancidity — that is, having the right taste, smell and colour — and has no physical, biological or chemical contaminants. “Our expectation is that our two organizations would pull resources together to support artisanal palm oil producers to meet these requirements”, says Gbana. Kofi Essel, Head of Industrial Support Services Department of the Food and Drugs Authority, says his outfit is pleased with the

partnership and hopeful that the collaboration would equip artisanal oil palm producers to p ro c e s s s a f e a n d q u a l i t y products to position them to expand their market base. He adds that food hygiene and safety should be a core element of all food preparation processes, including palm oil, hence the need for processors to obtain and regularly update their knowledge in food safety and good manufacturing practices. On food safety, Essel advised consumers to stop demanding for palm oil with a redder hue, explaining that such market preference causes some unscrupulous palm oil producers to add substances to the product to change its natural colour, which could compromise food safety. Solidaridad and the FDA are pursuing this course as part of the implementation of the second phase of the Sustainable West Africa Palm Oil Programme funded by the Embassy of the Kingdom of Netherlands EKN in Accra and the Swiss government through its State Secretariat for Economic Affairs SECO . The programme seeks to contribute to the transformation of the oil palm sector in West Africa, increase incomes of smallholder farmers and p r o c e s s o r s , a n d ge n e r a t e economic growth and jobs. SWAPP II is part of Solidaridad s global agenda to build sustainable production for oil palm and other commodities.

WEDNESDAY SEPTEMBER 16 2020

Aviation

WEDNESDAY SEPTEMBER 16 2020

Africa Economy

WEDNESDAY SEPTEMBER 16 2020