Business24 Newspaper 14th February, 2022 by Business24 Online

MONDAY, FEBRUARY 14.2022

B U S I N E S S 24 .C O M .G H

NO. B24 / 305 | NEWS FOR BUSINESS LEADERS

Ghana Card to become e-passport in March, says GACL

US$54.5m climate change project to protect shea farming

MORE ON PAGE 13

| THEBUSINESS24ONLINE.COM

News/Editorial

Big boost for the successful implementation of AfCFTA

Wash your hands 2

Cover your cough 3

If you are sick, wear mask Brought to you by

Your subscription along with the support of businesses that advertise in Business24 -- makes an investment in journalism that is essential to keep the business community in Ghana well-informed. We value your support and loyalty. Contact: editor@business24.com.gh Newsroom: 030 296 5315 Advertising / Sales: +233 24 212 2742

he AfCFTA Secretariat has hit another milestone in its quest to integrate the continent through trade under the ambitious and highly impactful African Continental Free Trade Area with the signing of an agreement that will guide the management of the base fund of the AfCFTA Adjustment Fund. The Adjustment Fund consists of a base fund, a general fund and a credit fund. The base fund will consist of contributions from state parties, grants and technical assistance funds to address tariff revenue losses as tariffs are progressively eliminated.

It will also support countries to implement various provisions of the AfCFTA Agreement, its protocols and annexes. The general fund will mobilise concessional funding, while the credit fund will mobilise commercial funding to support both the public and private sectors, enabling them to adjust and take advantage of the opportunities created by the AfCFTA. It is expected that state parties will be concerned about the impact of tariff cuts and changes to their Customs regimes as a result of complying with the liberalized and binding trade rules of the single continental market. According to the AfCFTA boss, Wamkele Mene, the Adjustment

Fund is one of the instruments designed to support the implementation of the AfCFTA Agreement and assist state parties to deal with short term tariff revenue losses as they dismantle tariffs and implement the agreement. This financial support structure should offer some respite to African economies, especially those in the least developed bracket, whose trade inflows will be largely affected by tax cuts in the immediate term. But more importantly, it signals the readiness of the continent’s banks and financial services actors to spearhead and facilitate the smooth implementation of what is now the continent’s biggest economic project.

Gov’t chases Indian firm Selftech over US$5.4m ‘sugarcane’ cash continued from page 1

Yusif Sulemana, on the status of the 49.9hectares of sugarcane nursed as part of the Komenda Sugar Factory project. The minister argued that the contract for the sugarcane nursery project was not fully executed and handed over to the ministry, aside not being approved by Parliament as required by the Constitution of Ghana. “All hearings on the matter have been concluded since 10th October,2021 and both parties are currently waiting for the final award from the arbitration proceedings.” The Minister who appeared in parliament last Thursday indicated that a contract for the development of a sugarcane nursery on a 50-ha piece of land at Komenda was signed between the GoG and Seltech India Pvt in 2016. But the Indian firm also claims that the state had refused to pay for the development of the

KOMENDA SUGAR FACTORY

50-hectare sugarcane nursery estimated at US$2.75million. The company is therefore claiming damages estimated at US$3.9m with interest. Government has said it is concluding the conditions precedent to activate the

concession agreement to secure a strategic investor for the Komenda Sugar Factory. The conclusion of the agreement with the strategic investor, Park Agrotech Limited, would enable them to commence operations at the factory.

MONDAY, FEBRAURY 14, 2022

| NEWS

Ghana Card to become e-passport in March, says GACL BY BENSON AFFUL affulbenson@gmail.com

The Ghana Airport Company Limited (GACL) has told all airlines through the International Air Transport Association (IATA), that the Ghana Card will from March 1, 2022, be recognised as an international travelling identity document, otherwise called e-passport for all Ghanaian holders travelling to Ghana. The GACL, following this week’s key ceremony at the headquarters of the International Civil Aviation Organisation (ICAO) in Montreal, Canada to officially recognise the Ghana Card as a Machine-Readable Travel Document (MRTD), the GCAA in an official notice to international airlines and airports,

has confirmed that Ghanaians can start using their Ghanacard from 1st March, to travel to Ghana.

This directive also means that Ghanaians in the diaspora, who hitherto needed a Ghanaian

passport and a visa to travel back home, will now be able to use their Ghana Card to travel back to Ghana without a visa. The GACL’s notification asked all airports and international airlines operating to Ghana to allow holders of the Ghana Card to board flights to Ghana, following the card’s recognition by ICAO as an international Machine-Readable Travel Document. The GACL has also sent a separate notification on the new directive to the IATA Timatic Team, for publication on IATA Timatic Platform “for the general information of all concerned.” The latest step by the GACA has paved the way for airports and airlines to start recognising the Ghana Card as an e-passport.

US$54.5m climate change project to protect shea farming The Vice President, Dr Mahamudu Bawumia, has launched the Ghana Shea Landscape Emission Reductions Project (GLSERP) with a call on the chiefs and people of the five northern regions, especially farmers, to “own it” and ensure its success. The US$54.5 million GLSERP project seeks to mitigate the effects of climate change on the fragile ecosystem of the Northern Savannah Landscape as well as improve the shea value chain, especially for the hundreds of thousands of women engaged in the entire value chain. Performing the launch in Tamale on Friday, February 11, 2022, Vice President Bawumia said the Shea Landscape Project will be the second emission reductions programme to be implemented under the REDD+ process in Ghana, after the Ghana Cocoa Forest REDD+, and focuses on the northern landscapes which are currently undergoing rapid deforestation and degradation including the loss of valuable shea trees. “The GSLERP therefore provides a unique opportunity to engage on a bigger scale in the Shea commodity and its by-products, which are an important income generating activities for over 600,000 women and has gained prominence as a preferred ingredient in the cosmetics and food processing industry globally,” he added. “Ghana is currently the fourth

largest producer of Shea in the world. I believe this project if successfully implemented will change this status with the planting of over 1.7 million shea trees over the 7-year project period.” Government has since 2017, supported scientific research on the shea plant geared towards making the shea a reliable income generating product. This work, undertaken by the COCOBOD, has led to important breakthroughs, including reducing the gestation period of the shea plant from over 20 years to an average of 3 years, the Vice President disclosed. It is against this background that the government committed in the 2022 budget statement to embark on projects and programme that will promote the cultivation of

shea in the north, just as cocoa in the south, to transform the local economies of the shea region. “The implementation of GSLERP is crucial. This is so because the project addresses about nine Sustainable Development Goals, including goals on; no poverty, zero hunger, gender equality, economic growth, climate action and life on land. “This project will address at firsthand the financial constraints of shea farmers, ensure that gender equality prevails in sheaproduction systems, promote the business development of shea farming among natives, and cause a decreased deforestation and enhance fire management covering almost 500,000 hectares.” It is estimated that the Ghana Shea

Landscape Emission Reductions Project will achieve 6.1 million tonnes in emission reductions and removals over the first seven years of the project’s lifetime and 25 million tonnes in emission reductions over 20 years. “This can only be achieved when stakeholders fully commit to the project at every point in time through collective ownership” Dr. Bawumia stressed. “I therefore call on all stakeholders and beneficiaries of the project in the 5 regions of the north to collaborate to achieve this and build ecosystem resilience. “Government will continue to create a climate responsive atmosphere through the right policy, technical and financial commitments. “I also entreat everyone here to support this project and all other climate related projects and programmes in our communities. Finally, I appeal to all farmers especially Shea smallholder farmers and local communities, to own this programme and contribute to its success.” The Minister for Lands and Natural Resources, Samuel Abu Jinapor, expressed government’s gratitude to the chiefs for banning the harvesting of wood and the burning of same into charcoal, saying it would go a long in the fight against climate change. His ministry, he assured, would also continue with aggressive afforestation programmes.

MONDAY, FEBRAURY 14, 2022

| NEWS

Ghana to regulate carbon emissions in vehicles The Government of Ghana is taking steps to ensure the implementation of standards to regulate carbon emission in vehicles operating in the country. This is in line with efforts to uphold Act 569 to the letter, a law, which seeks to regulate the use of vehicles and promote good driving standards in the country. The Act outlaws the use of excessively smoking vehicles that are deemed to be hazardous to other road users and the environment in general. Article Six of the United Nations Framework Convention on Climate Change (UNFCCC) emphasizes the need to control automobile emissions as a means to ensure sustainable growth and reduce climate change. Mr Kwasi Agyeman Busia, Chief Executive of the Driver and Vehicle Licensing Authority (DVLA), who made this known at the inauguration of the Authority’s new District Office

at Obuasi in the Ashanti Region, said the regulation formed part of the vehicle testing regime. - Advertisement The DVLA was working with some key institutions, including the Environmental Protection Agency (EPA), Ghana Standards Authority (GSA), among others, in pursuit of this agenda, the Chief Executive said. Climate scientists say global emissions from the transport sector have been projected to rise into the future, urging national governments to implement stringent policies from automobile vehicles. In Ghana, the National MediumTerm Development Framework (MTEF) aims at developing a sustainable transport system to position the country as a transportation hub within the West African sub-Region. Unfortunately, the Framework fails to integrate environmental pollution with a sector-wide re-

development plan. According to the DVLA Chief Executive, regulating carbon emission in vehicles operating in the country would help to retool the existing Framework in order to recognize the role of hazardous transport pollutants and align them with the implementation of the strategic policies, regulation of market forces and the efficient supply of services that address environmental and human health challenges in the transport sector. Mr Agyeman Busia said the DVLA had taken bold steps to complete its online vehicle registration system to ensure a more efficient and speedier vehicle registration regimen. This was being done to reduce the average registration timeline to about an hour and also create an opportunity to restrain leakages, he noted. “We have begun the exercise of detecting and correcting inaccurate records in our

databases and we are integrating and sharing these data with stakeholders such as the Ghana Revenue Authority, Motor Traffic and Transport Department, National Road Safety Authority, among others,” the Chief Executive stated. He explained that the benefits to such data-centric collaboration, “is the lynchpin for DVLA’s vehicle 360 ecosystem.” According to him, the Authority was making tremendous progress in its transformation agenda, and as such, it was expected of the staff to remain focused and work together to achieve the corporate objectives of the DVLA. The new Obuasi DVLA District Office has facilities, including an administration unit, registration and capture rooms, premium office, accounts section, storeroom, manager’s office, file room as well as Customs office. - GNA

Ghana Beverages Awards 2021 Industry Tour takes off The much-awaited beverage industry tour, a prominent feature of the prestigious Ghana Beverages Awards (GBA), is set to take off with a visit to a host of beverage companies by the GBA Committee. Running for 3 consecutive days, the tour will equip the GBA Committee with first-hand knowledge in the production processes of nominated beverage companies. Since its introduction, the industry tour has contributed significantly to the scheme’s mission of identifying and celebrating beverage industries who have continually demonstrated their commitment to the highest standards of practice in the production and delivery of their products. Speaking, Chief Executive Officer for Global Media Alliance, Ernest Boateng, thanked Ghanaians for their growing acceptance of the awards scheme whiles lauding the participating beverage companies for their co-operation and support. “As organizers, we have observed with keen interest the year on year growth of the awards scheme and we must say that we are grateful to Ghanaians for their unflinching support over the years. We are also thankful to the beverage companies for their

acceptance of the brand, their participation and especially for opening their doors to us every year for the industry tour since it was instituted,” he said. Mr. Boateng mentioned that the beverage industry is pivotal to the sustenance and development of Ghana’s economy and called on Ghanaians to contribute towards national development through an increased consumption of locally produced beverages. Ghana Beverages Awards, currently in its sixth year, is

organized under the theme “Inspiring Excellence in Ghana’s Beverage Industry.” In the last five years, the awards scheme has been instrumental in putting the spotlight on the local beverage industry while promoting both local and foreign beverages as well as the participation of smallscale beverage enterprises in Ghana. Organized by Global Media Alliance, GBA is proudly supported by the Food and Beverage Association of Ghana

(FABAG), Consumer Protection Agency (CPA), Food Research Institute (FRI) under CSIR, Perception Management International (PMI) ,Ministry of Trade and Industry, Ministry of Tourism, Arts & Culture and the Ghana Tourism Authority (GTA). It is partnered by Citi FM, Happy FM, YFM, Akonoba FM, Neesim FM Bolga Neesim FM Tamale, eTV Ghana, Business and Financial Times, Daily Guide and Ghanaweb on the media front.

MONDAY, FEBRAURY 14, 2022

| NEWS

Data Protection and Privacy Principles

BY EMMANUEL K. GADASU

anuary 28 every year is celebrated as International Data Privacy Day - an international effort to create an awareness of the importance of privacy and personal data protection. With the increase in data breaches and cybercrime internationally, data protection and cyber security are more important now than ever before. Countries across the globe, including Ghana, through the laws, regulatory frameworks among many others, regulate how organizations process the personal data of their citizens both home and abroad. In Ghana, the Data Protection Commission is the government institution mandated by law to regulate organizations to comply with the Data Protection Act 2012 (Act 843). Using digital technologies and digitalised data is increasing rapidly in policy areas, as well as transforming society, transforming how citizens, governments, civil society, and companies engage with one another. The subsequent attendant challenges are enormous, with automation, biometrics, ID systems, and other technologies being adopted swiftly. It is essential to assess the necessity and risks but, sometimes, these technologies are adopted with insufficient assessment. In particular, the adoption of new technologies may impose considerable challenges to data protection and privacy. For instance, ID systems and biometric databases may allow for certain links to be made between

databases, including enabling interoperability with other government systems or information sharing across international borders, exacerbating the risks in terms of personal data protection. Therefore, although technically possible, the linking of different databases is not automatically justified, but must be balanced against an assessment of the inherent risks to data protection and privacy. The right to privacy is an internationally recognised human right, enshrined in several international human rights treaties, widely ratified by many countries and jurisdictions across the globe. One of such treaties is the United Nations’ Universal Declaration of Human Rights and the International Covenant on Civil and Political Rights), and contained in many conventions at the regional level, as well as national constitutions and bills of rights. Privacy and data protection are different rights, although intrinsically linked. The right to privacy is broader and includes the right to protecting personal data yet covers many elements beyond personal information. The right to data protection safeguards “the fundamental right to privacy by regulating the processing of personal data: providing the individual with rights over their data and setting up systems of accountability and clear obligations for those who control or undertake the processing of the data” according to the Privacy International. Therefore, data protection is essential to the exercise of the right to privacy. Data protection and privacy work through key ‘principles’ that give individuals rights over their data. Some international data protection and privacy principles have formed the foundation or the basis for the enactment of laws, bills, and regulations by various

countries across the globe. Below are some of them: • United Nations Personal Data Protection and Privacy Principles • Council of Europe (CoE) Convention for the Protection of Individuals about Automatic Processing of Personal Data; Convention 108 and later updated to Convention 108+. • Organisation for Economic Cooperation and Development (OECD) Guidelines • on the Protection of Privacy and Transborder Data Flows of Personal Data referred to as the OECD Privacy Framework. • General Data Protection Regulation (EU) of the European Parliament • and the Council of Europe (GDPR). • United Nations Guidelines for the Regulation of Computerized Personal Data Files, UN Resolution 45/95. These instruments have influenced the development of national data protection laws worldwide, translating some data protection and privacy principles into domestic legislation that regulates the processing of personal information. Core Data Protection and Privacy Principles The various data protection regulations across the world set out principles for the lawful processing of personal data. Processing includes the collection, organisation, structuring, storage, alteration, consultation, use, communication, combination, restriction, erasure, or destruction of personal data. The principles are at the centre of the various enacted regulations; they are the guiding principles of the regulation and compliant processing. The core data protection and privacy principles which are stipulated in most of the regulations across the globe are: • Accountability • Data minimisation or collection limitation • Purpose limitation or purpose specification and use limitation • Lawfulness, fairness, and transparency or openness • Accuracy or data quality • Storage limitation • Integrity and confidentiality or security safeguards • Individual participation These principles are interrelated and overlap. Each one contains several points of guidance, and it is essential to treat them together as a whole. While they can receive different names, the basic principles are similar across

the different data protection and privacy frameworks. The data protection principles establish the conditions under which processing personal information is legitimate, limiting the ability of both public authorities and private actors to collect, publish, disclose, and use individual personal information without the data subject’s consent. These principles also establish the rights that data subjects hold, such as the ability to determine who holds information about them and how that information is used. They entail several obligations imposed on those processing personal data– the data controller and processor– in both public and private sectors, forcing them to handle this data according to local data protection laws. Hence, and as stated by Privacy International, “A strong data protection framework can empower individuals, restrain harmful data practices, and limit data exploitation”. Who is responsible for data? What happens when things go wrong? There are two entities that have control over personal data and/ or process personal data: data controllers and data processors. The data controller is the natural person or the legal entity (e.g., government institutions, private companies, that alone or jointly with others, to determine the means of, and purposes for, processing personal data. That means that the data controller has decision-making power regarding data processing and is responsible for safeguarding and handling personal information on computers or structured manual files. The data processor is the individual or legal entity that processes data on behalf of data controllers (which is often limited to technical solutions–the ‘methods and means of processing). The author consulted the following materials which readers could refer to for further reading: • Data Protection for Social Protection: Key Issues for Low- And Middle-Income Countries (GIZ Data Protection for Social Protection) • General Data Protection Regulation • Privacy Guide for Businesses– Office of the Privacy Commissioner of Canada • The Bigger Picture: Privacy and Work in the New Normal (Data Protection World Forum)

Emmanuel K. Gadasu (Data Protection Officer, IIPGH, and Data Privacy Consultant and Practitioner at Information Governance Solutions) For comments, contact author ekgadasu@gmail.com or Mobile: +233243913077

| NEWS

MONDAY, FEBRAURY 14, 2022

Gov’t to track progress of pregnant women, issue ID numbers to new-borns The Ghana Health Service is to begin digitally tracking and monitoring all pregnant women across the country to ensure all new born babies receive a national ID number at birth, the Vice President, Dr Mahamudu Bawumia has disclosed. This has become possible following the ongoing linkage of the data of the National Identification Authority, Ghana Health Service, Birth and Deaths Registry, Ghana Statistical Service, and the Ghana Police Service to create a comprehensive database of all persons residing in Ghana in order to help in policy formulation and planning, and help with the issue of national ID numbers and cards. Vice President Bawumia made the disclosure at the launch of the 50th anniversary celebration of the Regional Institute for Population Studies (RIPS) at the University of Ghana, Legon, on Thursday, 10 February 2022. To aid the tracking, the Ghana Statistical Service has agreed to hand over 13,000 tablets used in

the recent national Population and Housing Census to the Ghana Health Service and will also provide other logistical support to the health workers, the Vice President added. “These tablets will track pregnant mothers from antenatal clinics until birth. What we are trying to do is that immediately a child is born, the data will be transmitted to the Births and Deaths registry, and the NIA who will both record it. Then the NIA will immediately issue a National Identification Number for the child,” he explained. “Starting sometime this year, we are quite advanced, the Ghana Health Service will announce the exact start date. So we will have that linkage between the NIA, the Ghana Health Service, the Statistical Service because they need that data of who has died, who has been born, etc. The Police also record a lot of deaths on our roads and other places, this is why they are also linked into the system so that they can also report, so that we have a comprehensive data. “We expect this system to be rolled

out this year so that the Ghana Card number will be the unique identifier. What all this will mean is that at any time, if all of this data is available, we will have a pretty good estimate of our population in Ghana and this will therefore likely change the nature of the census in the future. Once we know, say 2020 this is the record, and so far this year so many people have been born, and so many people have died, then we know what the net numbers are. “This is a major new system that is coming, and it will help Ghana going forward.” Vice President Bawumia commended the founders of the Institute for their vision, pointing out that a study of populations and its demographics play a very crucial role in policy formulation and planning, and alumni of RIPS have been playing leading roles in Ghana and across the world. “At the national level, the role of RIPS in contributing to the implementation of the National Population and Housing Census has been immense.

“In addition, the contributions of scientists at RIPS to the development of major national policies are noteworthy, one of which was the recent reappraisal of the Coordinated Programme for Economic and Social Development Policies (CPESDP), which is the National Development Planning framework for Ghana. “I am also aware of your efforts in many areas of Population, Health, Environment and Development, working with Metropolitan, Municipal and District Assemblies (MMDAs) to implement intervention projects in poor communities along the coast of Accra. The extension of your support to COVID-19 adolescent returnee migrants in the Tamale Metropolis is very profound and worthy of commendation.” The Vice Chancellor of the University of Ghana, Professor Nana Aba Appiah Amfo, announced plans for a year-long celebration, and urged alumni across the world to participate and contribute to the debates and symposia.

Fashionomics Africa, partners, launch new sustainable fashion competition with $6,000 in cash prizes The African Development Bank Fashionomics Africa initiative’s second online competition is offering $6,000 total in cash prizes, mentoring, new branding packages and other support for winning African designers of sustainable and circular fashion. Fashionomics Africa, in collaboration with the United Nations Environment Programme, Parsons School of Design, strategic consulting and communications agency BPCM, and the Ellen MacArthur Foundation, invite interested African fashion brands to apply to the sustainable fashion online competition. Entrants must be pursuing environmentally friendly measures, sustainability, and circular economy actions to qualify. The designer or design team submitting the “best sustainable design” will win $3,000 along with other prizes. Two other competition finalists will take home $1,500 each, plus other support. The competition celebrates African fashion brands that will change how we produce, buy, use and recycle fashion and that encourage a more sustainable shift in consumer practices. “Sustainability is the present, not the distant or even the near future. It is where we are now, and it is vital that we open our eyes to what the fashion industry already has to offer. By embracing the industry’s existing resources, we

are promoting circularity at the most fundamental level,” said Amel Hamza, Acting Director for Gender, Women and Civil Society at the African Development Bank. “With the second edition of the Fashionomics Africa contest, the Bank aims to continue highlighting the ingenuity that African fashion designers consistently demonstrate through the strength of their culture and heritage,” she added. The textile and fashion industry accounts for nearly 2% to 8% of global carbon emissions, the sector ranks as the world’s second-largest industrial polluter after the oil sector, according to the United Nations Environment Programme. However, this industry also provides important levels of employment, foreign exchange revenue, and products essential to human welfare. The competition targets textile, apparel, and accessories entrepreneurs from Africa, aged 18 years or older, who have

launched fashion businesses (up to a maximum of 50 employees), and whose sustainable designs have been produced within the last five years. Qualifying applicants will submit pictures of their products, detail their sustainable business model, and explain how their startup is environmentally friendly and innovative. Examples of sustainability and circularity elements might include materials used, the design process, cleaner or greener production processes – including shipping methods or ways to reduce carbon footprint. A five-person judging panel representing the African Development Bank and competition collaborators will announce the three finalists by 22 March 2022. The finalists’ entries will be posted on the Fashionomics Africa digital marketplace and mobile application(link is external) for public vote between 22 March 2022

and 7 April 2022. Polls close on 7 April at 23:59 GMT. In addition to the cash prize, the winning fashion brand will receive a certificate and the opportunity to showcase its creation by taking part in online events and sharing insights on key sustainability challenges facing the industry. The winner will have access to a network of media insiders and industry experts and receive mentoring and networking opportunities from competition collaborators. To learn more about the Fashionomics Africa online competition or to submit an entry, click here(link is external). Applications must be received by 1 March 2022 at 23:59 GMT. Fashionomics Africa is an African Development Bank initiative increasing Africa’s participation in the global textile and fashion industry value chains.

| F E AT U R E

MONDAY, FEBRAURY 14, 2022

5 KEY REASONS WHY VALENTINE’S DAY MUST BE CELEBRATED

ll too soon, a new year is here and the second month of the year is with us again. Work and life go on as usual and then you start to see everything around you turning red. YES! It’s that time of the year again when LOVE is the greatest topic on the table. Young or old, everyone is talking about Valentine’s Day. Questions fly left, right and centre about why people should wait all year for just one day to show love to their spouses or friends. However, Valentine’s Day means more than just a day. It’s the season! The season of love. Why do people invest so much time, thought and money into this season? Going shopping, placing orders online, buying chocolates, ordering flowers and many other activities lead the way at this time of the year. Jumia, Africa’s leading e-commerce platform, discusses why this season of love must be celebrated. You may know the history of Valentine’s day and may have celebrated it year on year for your entire adult life. This however puts a greater perspective into why we need to celebrate it the more. 1.Love is cheaper at this time of year - Maybe this is the perfect time to say ‘’Love doesn’t cost a thing’’ right? During the Vals day season, there are deals everywhere. Whatever you are thinking about gifting that special

Love doesn’t make the world go round. Love is what makes the ride worthwhile’. – Franklin P. Jones.

person in your life comes at heavily discounted prices. There are sales ongoing everywhere, especially online. Online shopping platforms like Jumia are running promos of up to 50% on selected love gifts like chocolates, clothing, accessories, cosmetics, food, flowers etc. You can also use online deliveries and logistics carrier Jumia Logistics to deliver your gift safely to your loved one at reduced fees. If you ever needed the perfect time to spoil your lover while saving a lot of money, this is it! 2.Remind your loved ones that you still care - Life can run so fast that basic responsibilities can sometimes be overlooked. Unintentionally we go through life without even remembering to show our friends, family and lovers that we care so much for them. Valentine’s season is a period where we have a unique opportunity to remind these wonderful people that we love and care so much for them. Gifts, dates, calls and messages go a long way to rekindle these good relationships. Although we shouldn’t wait for one day or season to show love, it always helps to remind them about the affection you feel towards them when the whole atmosphere is filled with love. 3.Time to spread love - Valentine’s Day or this season is not only reserved for people we know or have fundamental relationships with. Have you ever thought about the less privileged or maligned in society? The widowed, orphans, street children, aged, sick and other less fortunate people? Who shows them, love, at this time? Valentines is a time to spread love

to all these people. To care for them and make them happy. Individuals can visit them, spend time with them and gift them with basic essentials. Corporate institutions can also make it a CSR to visit and donate to these orphanage homes, street children, widows and people suffering from various ailments. E-commerce brand, Jumia is one of such companies that have over the years dedicated itself to spreading the love around this time to such beautiful people. In 2021, they donated nose masks, sanitisers and gloves to street hawkers and children in Accra while educating them on ways to protect themselves against the virus. 4.Celebrate life and make memories - Apart from spreading love and reminding our loved ones that we care and love them deeply; Valentine is a season to celebrate life and create new memories that last a lifetime. Many people use the term ‘’YOLO’’ sparingly. Well, if we only live once, then once is enough to make great amazing memories. Life is fleeting, nothing lasts forever except memories. This means we need to make the most of the time we have with the people around us. Do something fun and exciting, make each other happy and take as many pictures or videos as possible. If you love social media, post these videos/ pictures and tag them. So, with just a few days until Val’s day, it’s time to start ordering those gifts online. Make those plans with loved ones and live your best life. Show love spread love and be loved. Happy Vals Day in advance.

MONDAY, FEBRAURY 14, 2022

Ghana imports $200m fish annually – Akufo-Addo BY VINCENT KUBI

President Nana Addo Dankwa Akufo-Addo is worried about the negative impact of illegal fishing on the country’s fish stock and economy. According to the President, illegal, unregulated, and unreported fishing activities have contributed significantly to a decline in fish stocks and the economy as a whole. He said the illegal activities is compelling Ghana to spend some $200 million annually to import fish to shore up fish requirements. President Akufo-Addo made these remarks when he participated at the One Ocean Summit, held in Brest, France on Friday February 11, 2022, upon the invitation of Emmanuel Macron, President of the French Republic. He wrote on his Facebook timeline after the Summit that “I indicated, in my remarks, that, in Ghana, illegal, unregulated, and unreported fishing activities have contributed significantly to a decline in fish stocks. “As such, we are compelled to spend some two hundred million dollars (US$200 million) annually to import fish to shore

up our fish requirements. “To curb the menace of illegal, unregulated, and unreported fishing activities, a National Plan of Action is being implemented.

Components of this Plan include fish catch certification, reactivation and installation of vessel monitoring systems (VMS), automatic identification

system (AIS) on vessels, port and beach inspections, and sea patrols. Ghana also supports the principle of a global convention in this area.”

Japan Motors launches upgraded Nissan KICKS Japan Motors Trading Company Ltd. ( JMTC) has launched the latest incarnation of the crossover Nissan KICKS. A media release issued in Accra said the launch of the new Nissan KICKS indicated Nissan’s crossover leadership for the brand by offering a complete range of modern C-SUV vehicle options to the Ghanaian market. “The global Nissan model, which is produced at Nissan’s A1 manufacturing plant in Mexico, is back to impress with standout exterior styling improvements and a host of comfort and technology additions,” it said. During the press launch, the General Manager Sales & Marketing, Mr Amine Kabbara, said the Nissan KICKS offered a lightweight aerodynamic design, which optimised fuel consumption and minimised noise. He said the design combined a robust exterior and an elevated

SUV-like driving position while maintaining city-ready compact measurements for agile performance. “KICKS now enjoys significant technology improvements to the existing suite of Nissan Intelligent Mobility features, to build on what was first

presented at the Geneva Auto Show in 2016. “The unmistakably recognisable KICKS two tone floating roof design remains, and exterior styling is refreshed with thinly styled all-LED headlamps, an imposing V-Motion Grille and aggressive changes to the rear bumper and

LED lights,” he said. Again, Mr Kabbara said the upgraded Nissan Intelligent Mobility features aim to reduce driver stress and inspire confidence with an Around View Monitor, Moving Object Detection and Hill Start Assist, which also include dual, side and curtain airbags, cruise control and tyre pressure monitor to enable a comfortable KICKS life. “Infotainment in the car also enjoys an upgrade with the latest seven” TFT highdefinition A-IVI interface which incorporates Apple Carplay™ and Android Auto®. Further interior comfort improvements extend to a driver armrest as standard, manual dimming rear view mirror and an upgrade to door panel trim styling. The efficient 1.6L engine is retained for the new model, which is paired with a D-Step CVT gearbox.

MONDAY, FEBRAURY 14, 2022

PETROSOL trains over 100 station managers

PETROSOL has held a 360 Effectiveness Professional Development Programme in Fuel Service Station Management for its station managers and supervisors. The aim was to build their capacity in managing their retail outlets and to achieve growth objectives. A media release issued in Accra said the training was held for 108 station managers and supervisors from January 17 to 25, 2022 by PETROSOL, an ISO certified OMC brand with a retail network of

over one hundred fuel stations. Speaking at the opening of the training, the Chief Executive Officer of PETROSOL, Mr Michael Bozumbil, charged the managers and supervisors to uphold and live the company’s vision, mission and values. He stressed the need for all of them to embed the company’s vision of “becoming a model of excellence in the oil and gas industry” in their minds and hearts and strive to be the best or among the best in their chosen fields of endeavour.

“Be mindful of the company’s brandpillars,whichcommunicate in uncompromising ways its value offering to consumers. The pillars are: Full Quantity, Quality Fuel, Quality Service, Product Availability, Safe and Convenient Service Environment and Competitive Prices,” he said. While expressing his confidence in the team to deliver on this year’s objectives, he reminded the team of the company’s “just do it!” mantra and charged the participants to apply the knowledge gained to increase

sales and grow their customer base. The supervisors were trained on the various aspects of their operations, responsibilities and expectations required of them. The Head of Human Resources, Mr David L. O. Mills, challenged the participants to exhibit exemplary leadership skills in their roles, stressing the importance of planning, delegation, communication, coaching, supervision as vital to effective people and business management.

Flora Jika is new Voltic Ghana Managing Director Flora Jika, who has been with the Coca-Cola beverages business for the past 14 years has been named as the new Managing Director of Voltic Ghana Limited. Voltic Ghana is a subsidiary of Coca-Cola Beverages Africa. Flora Jika began her career in the coal mining industry, being the first female mining engineering graduate at Anglo Coal. She joined Coca-Cola in 2008 with her first role being a depot manager. Her knowledge and expertise cut across engineering, supply chain, logistics and marketing and rose through the ranks at Coca-Cola. Until recently, she was the Logistics Director at Coca-Cola Beverages Africa, South Africa. “I am delighted to join Voltic at this time and I look forward to building a success story with the team,” she indicated in a response to the new role. Flora Jika replaces Simon Everest. She is a member of WUMEA (Wits University Mining

Engineers Association) and SAIMM (South African Institute of Mining and Metallurgy). She holds an undergraduate and a post graduate degree in Mining Engineering and

Industrial Engineering fields respectively, from Wits University. Commenting on the new appointment, the Managing Director of Coca-Cola Beverages

Africa, Conrad van Niekerk said: “We are delighted to welcome Flora to the Voltic family and wish her the best as she steers the business into sustainable growth and profitability.”

MONDAY, FEBRAURY 14, 2022

Workshop discusses equitable access to COVID-19 vaccines Over 250 representatives from WTO members and observers participated on 11 February in a technical workshop focused on the practical aspects of COVID-19 vaccine research and development (R&D), manufacturing, regulatory approval, distribution, and coordination of vaccination campaigns. DDG González stressed the commitment of the WTO to help its members better understand and address trade issues related to the pandemic. “With this vision, we have designed this workshop to improve our understanding of the rapidly evolving and complex aspects of COVID-19 research and

development, manufacturing, and distribution, from a practical perspective,” she said. Speakers at the event included government officials from Chile, Lao PDR and Morocco, and

representatives of international organizations, such as the United Nations International Children’s Emergency Fund (UNICEF), the World Bank and the World Health Organization (WHO).

Participants also heard the perspective of the Coalition for Epidemic Preparedness Innovations (CEPI) – a public/ private innovative global partnership – as well as challenges faced by vaccine manufacturers and logistics companies including Pfizer, AstraZeneca, Novavax and DHL. Panelists shared their practical experiences and insights on how to source inputs globally, streamline the regulatory process and distribution and keep in mind the necessary considerations to prepare for successful vaccination campaigns.

Agreement to manage seed fund of AfCFTA Adjustment Fund signed The African Continental Free Trade Area (AfCFTA) Secretariat and African Export-Import Bank (Afreximbank), have signed an agreement relating to the management of the base fund of the AfCFTA Adjustment Fund. The Fund will support African countries and the private sector to effectively participate in the new trading environment established under the AfCFTA. The agreement was signed by Professor Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank and Wamkele Mene, Secretary General of the AfCFTA Secretariat, in the presence of Mr. Aly Basha, Minister Plenipotentiary (Trade) of the Arab Republic of Egypt as well as African bankers and captains of industry. The AfCFTA Secretariat and Afreximbank were mandated by the African Union (AU) Summit of Heads of State and Government and the AfCFTA Council of Ministers responsible for Trade to establish the AfCFTA Adjustment Fund to support AfCFTA State Parties to adjust to the new liberalised and integrated trading environment established under the AfCFTA Agreement. The Adjustment Fund consists of a Base Fund, a General Fund and a Credit Fund. The Base Fund will consist of contributions from State Parties, grants and technical assistance funds to address tariff revenue losses as tariffs are progressively eliminated. It will also support countries to implement

various provisions of the AfCFTA Agreement, its Protocols and Annexes. The General Fund will mobilise concessional funding, while the Credit Fund will mobilise commercial funding to support both the public and private sectors, enabling them to adjust and take advantage of the opportunities created by the AfCFTA. Speaking during the signing ceremony, H.E Wamkele Mene, Secretary General of the AfCFTA Secretariat, stressed the importance of the Adjustment Fund as one of the instruments designed to support the implementation of the AfCFTA Agreement and assist AfCFTA State Parties to deal with short term tariff revenue losses as they dismantle tariffs and implement the Agreement. “As we make significant progress in establishing schedules of tariff concessions, the finalisation of the Adjustment Fund will enable us to maintain and even accelerate the momentum. We now have an excellent tool to provide support

to our State Parties and their private sector through financing, technical assistance, grants and compensation funding. It will help them mitigate revenue losses and competitive pressures that may result from reduction in tariffs and liberalisation of markets in order to tap into the opportunities of the AfCFTA. This is another important step towards the successful implementation of the continental free trade agreement,” said Mr. Mene. The resources required for the Adjustment Fund over the next 5-10 years are estimated at US$10 billion. Afreximbank has already committed $1 billion towards the AfCFTA Adjustment Fund. In his remarks, Prof. Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank, said that the funds will be used to support both the public and private sectors to address short term disruptions, while enabling the private sector to retool, reskill, and develop capabilities to produce value

added goods and services that can be traded competitively within the continent and catalyse the emergence of AfCFTA-led regional value chains. “This Adjustment Fund, which is taking shape, comes on top of the Pan African Payment and Settlement System (PAPSS), which was commercially launched on 13 January 2022 in Accra, and the resoundingly successuful second edition of the Intra-African Trade Fair, which held in November 2021 in Durban. These are some of the initiatives that we are proud to implement in close collaboration with the AfCFTA Secretariat, setting the conditions that will undoubtedly lead to a smooth implementation of the AfCFTA,” said Prof. Oramah. “Today we have launched the Base Fund of the Adjustment Fund to address urgent needs of State Parties relating to tariff revenue losses and the transposition costs to enable them to implement the AfCFTA Agreement. We will be launching the General Fund and Credit Fund very soon to address the needs of the private sector including the small and medium enterprises, women and youth. We look forward to working with all development partners, development financial institutions, commercial banks, export credit agencies and other investors and strategic partners to mobilise resources for the Adjustment Fund to enable the continent to implement the AfCFTA,” he concluded.

MONDAY, FEBRAURY 14, 2022

EDUCATION

When you give, you get: the story of Clement Ngosong ‘23

n 2019, Clement Ngosong ‘23 arrived at Ashesi to study Electronic and Electrical engineering. He had received a full scholarship to attend but had to convince his family to let him leave Cameroon for Ghana. Having once experienced a scholarship scam, his parents were sceptical and remained so till the day he arrived on campus. At Ashesi today, Clement is recognised as one of the student community’s most engaged members, serving across several organisations and working to help deepen Ashesi’s diversity. He has also started an experience sharing initiative to get more young audiences to participate in civic engagement. It has since reached hundreds of students, serving as a skills and resource sharing platform for students seeking to contribute meaningfully to causes. Even though Clement has found a community of civic leaders at Ashesi, he was engaged in volunteer work long before arriving on campus. Growing up in Muyuka, a small farming town in Cameroon, Clement and his peers did not have the opportunities other students in urban areas of the country had. Like their parents before them, most of his colleagues planned to become small-scale farmers after high school. In his village, this was an endless cycle. Clement’s parents, however, wanted him to pursue more education opportunities. They convinced him to move to Yaoundé, the capital city of Cameroon, to live with his older brother. His family believed the change would allow him to find stronger schools and do better in his high school exams. They were right. Although a good student, Clement had to catch up with his peers in Yaoundé because they were further along in their learning than he and his peers back home. He also learned more about the pathways that existed for young people like

him to pursue higher education. His experiences left him thinking a lot about his friends back in Muyuka. “My time in Yaoundé made me realise that we had a lot of catching up to do in Muyuka,” he shares. “The difference in me after three years was visible, and I believe it came from the exposure in the city and the opportunities I now had within my reach.” After his high school exams, he took a gap year. He returned to Muyuka with a new mission: to share his experiences and learning and help bridge the opportunity gap between his urban and rural friends. He had, however, underestimated what it would take to do this. The schools he tried to work with did not take him seriously because of his age. He turned to his former teachers, who helped him access their classrooms and speak with their students. Clement then leveraged this to start organising small education fairs and conferences, working part-time to help meet the expenses. During this period, unrest in Cameroon escalated, and students in his region could longer go to school on certain days of the week. Clement started tutorial sessions to fill in the gap, while still speaking with

students about the opportunities that existed in the world. With the unrest persisting in Muyuka however, he moved back to Yaoundé. His commitment to his cause, however, remained unwavering. “My passion for engaging with high school students urged me to volunteer with organisations such as Open Dreams, Enhancing Youth Empowerment for Creative Innovations (EYECI), Youth Centre for Progress (YOCEP) and NexGen Technology Centre,” says Clement. “This work was a strong reason and a key part of me being able to come to Ashesi.” Now a third-year student, Clement is the President of the International Student Association on campus. The Association works closely with others across the university to help make Ashesi’s campus inclusive. In June, he was selected as one of 25 members of the Youth Sounding Board for International Partnerships. The Board will advise European Commissioner for International Partnerships Jutta Urpilainen on the EU’s global youth policy. The members were selected through an open call that resulted in 4000 applications from more than 150 countries. “The decisions we politicians are taking now – on climate

change, economic recovery, education, and so on – will have long-lasting consequences for this planet and its people,” said Commissioner Urpilainen. “It is, therefore, more than right that we consult those in the frontline – the young people of today. These talented, bright young people will help us make the European Union’s external actions work better for their peers back home and across the world. I very much look forward to hearing from them.” For Clement, civic engagement has not only been a way to give back, but it has also allowed him to grow and build a network of support. He now continues to encourage others to spend more of their time volunteering for causes. “Civic engagement presents an opportunity for young people to acquire the essential aptitude and skills required not just to take on a rigid system, but to propel change within it,” Clement says. “My civic engagement catapulted me from a lay boy in Muyuka to a man of impact and value amongst my peers. With the impact it has had on me and others, I will forever urge young people to engage with their communities and work out the change they want to see.”

| AFRICAN BUSINESS

MONDAY, FEBRAURY 14, 2022

Investing in Africa’s digital transformation BY SUNDAR PICHAI

few years ago, I was in Lagos to see Alphabet’s digital skills programs at work. There was excitement for the future of technology in Africa and all the jobs and opportunities it could bring. From jobseekers learning new skills to entrepreneurs building promising new apps and businesses, the people I met were deeply inspiring. These people were on my mind again when I addressed regional leaders at the African Union’s annual Business Forum this week. Although the continent is facing big challenges – from the ongoing pandemic to a difficult economic recovery – it also has plenty of reasons for optimism, led by its engineers, developers, and entrepreneurs. Africa is increasingly a place where innovation begins. There were more investment rounds for African tech startups last year than ever before. People everywhere now use mobile payment systems first developed in Kenya. Renewable energy solutions created in Africa are shaping a more sustainable future for us all. And thanks to the internet, African businesses can reach markets all over the world, while also providing solutions to Africa’s – and the world’s – most pressing challenges. This is meaningful to me personally. Growing up in India, my family had to wait for every new technology to come to us, from the television that gave us a view into other parts of the world, to the rotary phone that meant we could get test results faster. Today, India is exporting technologies to the world. Africa has the same opportunity. Despite having 18% of the global population, the continent currently accounts for just 0.4% of hightech exports, and only 2% of the world’s broader service exports, which are now heavily reliant on technology. Boosting these exports will accelerate growth for the continent, much like it has in India. Fortunately, Africa is on the

cusp of a digital transformation. Over the next five years, 300 million more people are coming online in Africa – many of them young, entrepreneurial, and digitally savvy. The African internet economy has the potential to grow to $180 billion – roughly 5.2% of the continent’s GDP – by 2025. Working in partnership with governments, companies like Google can play an important role in accelerating this shift. In 2020, we outlined some of those opportunities in our Digital Sprinters report, and in 2021 we committed an additional $1 billion to Africa over the next five years. Now, we are calling on others to make their own investments. We recommend focusing on four key areas that will ensure that the digital transformation benefits every African. First, we must help to expand affordable and reliable internet access throughout the continent. We have seen during the pandemic that digital connectivity is a lifeline, helping people find essential information and connect to critical services. Our Equiano subsea cable will bring faster, better-quality internet to more people, helping to bring down costs by more than 20%. Working with partners like Econet Wireless, our Taara team is deploying wireless optical communications links that use light to transmit information at

super high speeds through the air, improving both affordability and connectivity. We are also focusing on lowering the barriers to smartphone adoption, including by working with Safaricom in Kenya to introduce that country’s first device financing plans. The second priority is to help African businesses of all sizes with their digital transformations. According to the Portulans Institute, business sophistication (defined as “knowledge workers, innovation linkages, and knowledge absorption”) lags well behind the availability of digital infrastructure. Closing that gap means enabling businesses to move online, training more people to pursue careers that depend on technology, and ensuring that companies take advantage of cloud computing. Companies should invest in products and solutions that are fit for Africa, and African governments need to adapt regulatory environments and their own development strategies to be digital-first. Small businesses need to be at the center of digitization and training efforts, as they employ around two-thirds of the continent’s formal workforce. A third priority is investing in African entrepreneurs. Where entrepreneurship flourishes, innovation and investment will follow. That is why we will be

investing directly in African start-ups through a dedicated $50 million Africa Investment Fund, as well as through our global Black Founders Fund. We have already invested in SafeBoda – an app that connects passengers to a community of safe, trusted drivers – and we hope that other companies will help to provide additional funding for start-ups across the continent. The final priority is to support nonprofits and institutions working to unlock the benefits of technology. For example, the AirQo team at Makerere University in Uganda is using artificial intelligence and sensors to monitor air quality. We are providing them with $3 million so that they can take their work beyond Kampala, as part of a broader $40 million commitment to help NGOs respond to challenges in their communities. Any company seeking to invest in Africa should be open to learning. Google’s presence on the continent is already helping us improve the technology that we build for everyone. Looking ahead, deeper partnerships will be key to ensuring that Africa’s digital progress is sustainable. We hope more companies will join us in these efforts, helping to ensure that every person in Africa can take advantage of the opportunities technology creates.

MONDAY, FEBRAURY 14, 2022

| F E AT U R E

Climate accountability now

BY MARY ROBINSON

t has been 30 years since world leaders gathered in Rio de Janeiro and agreed on a set of measures to start the global mobilization against human-caused climate change and to meet the imperative of a more sustainable development model. Their Rio Declaration affirmed that “human beings are at the center of concerns for sustainable development. They are entitled to a healthy and productive life in harmony with nature.” Today, tens of millions of people who were not even born in 1992 are suffering the worst of the climate crisis. In a world already plagued by economic inequality and social injustice, COVID-19 has exposed and exacerbated the policy failures of the past three decades. Political leaders have not lived up to their previous commitments. To overcome inertia, policymakers everywhere would do well to listen to those on the front lines of the climate crisis who are demonstrating real leadership and innovation. Among them are Yvonne AkiSawyerr, the mayor of Freetown in Sierra Leone, and young

activists like Elizabeth Wanjiru Wathuti from Kenya and Mitzi Jonelle Tan from the Philippines, with whom I discussed future challenges at Project Syndicate’s “Generation Green” event last month. These intergenerational debates are critical for driving progress and upholding one of the Rio Declaration’s central principles: “The right to development must be fulfilled so as to equitably meet developmental and environmental needs of present and future generations.” One of Rio’s strongest legacies is the creation of the United Nations Framework Convention on Climate Change. The UNFCCC has been the key multilateral body in the international community’s effort to strengthen the political consensus on climate action through annual Conference of the Parties (COP) summits. At COP26 in Glasgow last November, there was some progress toward strengthening the 2015 Paris climate agreement’s nationally determined contributions to emissions reduction, closing the gap in financing for climate adaptation, and ending the use of coal. But these advances were nowhere close to sufficient, given the existential threat posed by rising emissions and temperatures. That is why 2022 must be the year of accountability, with all

major emitters delivering on the promises of the so-called Glasgow Climate Pact. That declaration maintained a lifeline for limiting global warming to 1.5° Celsius, relative to pre-industrial levels, as agreed in the Paris accord. All countries at COP26 promised to step up their ambitions and revisit their emissions-reduction targets as soon as this year. In concrete terms, those who still have not set Paris-aligned 2030 targets should do so by COP27 in Sharm El-Sheikh this November. While all countries must fast-track implementation of their new commitments, it is particularly important that wealthy G20 economies do so, because they are responsible for most global emissions. Climate finance remains another critical part of the puzzle. It has been over a decade since rich countries pledged, at COP15 in Copenhagen, to provide $100 billion annually to support developing countries in their mitigation and adaptation efforts. That target has never been met. In the interests of global trust and goodwill, rich countries must follow through on this commitment this year. COP27 will be held by an African country, on the shores of the Red Sea. Africa is the continent most vulnerable to climate change, despite African countries’ negligible contribution to the problem.

In the interest of justice and solidarity, I hope to see Africa speak with one voice to ensure that COP27 advances the region’s concerns on adaptation, finance, and loss and damage (L&D) – the acknowledgement that countries are suffering climate effects beyond their ability to adapt. COP26 left unfinished business on L&D, because the United States, backed by the European Union, postponed the creation of a new financial mechanism to rebuild communities in the aftermath of climaterelated disasters. Country representatives nonetheless have committed to holding further discussions on the issue, which means that COP27 represents a major opportunity to achieve a breakthrough. An effective L&D fund is increasingly important for climate-vulnerable states. At COP26, the Scottish government and the Belgian region of Wallonia took the first step by pledging $2.7 million and $1 million, respectively, for L&D (with matching funds from philanthropic organizations). But this money currently has nowhere to go. Another encouraging development is the deal concluded by South Africa, the EU, the United Kingdom, the US, France, and Germany to support South Africa’s “just transition” away from coal. This now needs to be built upon – and emulated elsewhere. The spirit of multilateralism that animated the Rio summit and its outcome remains indispensable today, even though the geopolitical climate is fraught with tensions, mutual suspicion, and weak institutions. As my fellow Elder Ban Kimoon told the “Generation Green” audience, “We all have a part to play in addressing the climate crisis – especially those with the power needed to bring about change.” To honor the legacy of the Rio summit, to meet the needs of those already living with the consequences of the climate crisis, and to limit the repercussions for future generations, we all must strive to go further and faster to protect our shared home. And 2022 must be the turning point.

| I N T E R N AT I O N A L

MONDAY, FEBRAURY 14, 2022

America’s not-so-great inflation

BY BARRY EICHENGREEN

t has become abundantly clear that the United States has an inflation problem. What is not yet clear is how big the problem will turn out to be and how long it will last. Alarmed observers point to parallels with the 1970s, when commodity prices shot up, the US Federal Reserve fell behind the curve, and inflation expectations became unmoored. Consumers, producers, and workers all expected prices to keep rising at the same or even an accelerating pace. Accordingly, households adjusted their spending, unions their wage demands, and businesses their prices, triggering an inflationary spiral. Today, in contrast, inflation expectations remain firmly anchored. The Michigan Survey of Consumers shows that respondents expect inflation to approach 5% over the coming year, before falling back to just above 2% in the subsequent four years. The inflation rate implicit in the price of fiveyear inflation-indexed Treasury securities shows basically the same thing: inflation averaging 2.8% over the next five years. We can infer that expected inflation for the years 2023 to 2026 is below this five-year average, given the expectation

of 5% for 2022. There is no sign of the ship dragging anchor, in other words. Things can always change, of course. The question is whether inflation expectations, however stable they might be for the moment, will remain equally well anchored in the future, or whether they will become unmoored, as they did in the 1970s. Answering that question requires ascertaining whether the conditions leading to the 1970s “Great Inflation” have really been consigned to the dustbin of history. Importantly, in 1973, when consumer price inflation reached 6%, it was entirely rational for consumers, producers, and workers to extrapolate that rate into the future. They were justified in thinking that inflation would persist, because there were absolutely no grounds for believing that the Federal Reserve would tamp it down. The Fed, or at least those responsible for its policies, did not even possess a model of the connections between centralbank policy and inflation. The closest thing to an anchor for policy in the 1950s and early 1960s was the Bretton Woods international monetary system. Under Bretton Woods, the US pegged the dollar to gold at $35 an ounce, and foreign central banks and governments could redeem their dollars for gold, on demand. Excessive inflation and lax

central-bank policy might jeopardize this commitment. If US interest rates were too low, capital would flee the country, gold would be lost, and the Fed would be forced to raise rates in response. If spending was too strong, imports would surge, gold would again be lost, and the Fed would have to rein in demand. The Fed was not targeting inflation, and it was not seeking to minimize unemployment. Its mission was to conserve US gold reserves and defend the dollar’s Bretton Woods peg. It is commonplace to attribute the Great Inflation to the collapse of Bretton Woods in 1971-73. In fact, Bretton Woods had already lost its bite, and inflation had begun to accelerate in the second half of the 1960s. The US adopted policies, such as an Interest Equalization Tax on American foreign financial investments, that loosened the link between inflation and gold losses. The Treasury Department asserted its responsibility for managing the foreign-exchange market, allowing the Fed to dismiss gold losses and dollar weakness as someone else’s problem. As a result, US inflation was approaching 6% already in 1970, even before the collapse of Bretton Woods. The demise of Bretton Woods would not have mattered had the Fed possessed a coherent theory connecting monetary policy with inflation. In

lieu of that was Chairman Arthur Burns’s view that monetary policy didn’t matter. Burns believed that inflation was caused by unions’ excessive wage demands, price increases by firms with market power, poor harvests, high oil prices, and excessive government spending. His successor, G. William Miller, lacked Burns’s academic credentials and was not inclined to question the views of his illustrious predecessor. Paul Volcker eventually would have something to say about this, but not until after he became Fed chair in 1979. Today’s circumstances could not be more different. Fed officials understand that, in all but the most exceptional circumstances, monetary policy and inflation are intertwined. They have a coherent policy framework, average inflation targeting, to which they are committed. Financial-market participants and survey respondents alike show every sign of believing them. Nonetheless, the Fed has a rocky road ahead. Interestrate hikes can roil financial markets and provoke capital outflows and debt difficulties in emerging economies. Such are the consequences of falling behind the curve. But, in contrast to the 1970s, the Fed knows what is at stake. Having fallen behind, it is now firmly committed to catching up.

MONDAY, FEBRAURY 14, 2022

| GLOBAL ECONOMY

The return of global inflation

BY CARMEN M. REINHART, CLEMENS GRAF VON LUCKNER

nflation has come back faster, spiked more markedly, and proved to be more stubborn and persistent than major central banks initially thought possible. After initially dominating headlines in the United States, the problem has become a centerpiece of policy discussions in many other advanced economies. In 15 of the 34 countries classified as AEs by the International Monetary Fund’s World Economic Outlook, 12-month inflation through December 2021 was running above 5%. Such a sudden, shared jump in high inflation (by modern standards) has not been seen in more than 20 years. Nor is this inflationary surge limited to wealthy countries. Emerging markets and developing economies have been hit by a similar wave, with 78 out of 109 EMDEs also confronting annual inflation rates above 5%. That share of EMDEs (71%) is about twice as large as it was at the end of 2020. Inflation thus has become a global problem – or nearly so, with Asia so far immune. The primary drivers of

the inflation spike are not uniform across countries, particularly when comparing AEs and EMDEs. Diagnoses of “overheating,” prevalent in the US discourse, do not apply to many EMDEs, where fiscal and monetary stimulus in response to COVID-19 was limited, and where economic recovery in 2021 lagged well behind the AE rebound. Moreover, the pandemicinduced bust-and-recovery patterns differ markedly across country income groups, with recovery being defined as an economy’s return to its 2019 level of per capita income. About 41% of high-income AEs met that threshold at the end of 2021, compared to 28% of middle-income EMDEs and just 23% of low-income countries. But the disparity between advanced and developing economies is even greater than this comparison suggests, because many EMDEs were already experiencing declines in per capita income before the pandemic, whereas AEs were mostly at new highs. While many EMDEs have marked down their estimates of potential output over the past two years, there is little to suggest that their inflationary pressures are driven primarily by overheating in the aftermath of significant policy stimulus. One development that is common across advanced and developing economies

is the increase in commodity prices alongside rising global demand. As of January 2022, oil prices were up 77% from their December 2020 level. Another major issue affecting advanced and developing economies alike is global supply chains, which continue to be severely affected by the events of the past two years. Transport costs have skyrocketed. And unlike the oil-based supply shock of the 1970s, the COVID-19 supply shocks are more diverse and opaque, and therefore more uncertain, as the World Bank’s most recent Global Economic Prospects stresses. In EMDEs, currency depreciation (owing to lower inflows of foreign capital and downgrades of sovereign credit ratings) has contributed to inflation among imported goods. And because inflation expectations in EMDEs are less anchored and more attune to currency movements than in AEs, the passthrough from exchange rates to prices tends to be faster and more pronounced. Another important factor is food price inflation. During 2021, 12-month increases in food prices exceeded 5% in 79% (86 out of 109) of EMDEs. While AEs have not been immune to rising food prices, just 27% of them experienced price hikes exceeding 5%. Worse, food price inflation also generally hits lower-income

countries (and lower-income households everywhere) particularly hard, which makes it tantamount to a regressive tax. Food accounts for a much larger share of the average household consumption basket in EMDEs, which means that inflation in those economies is likely to prove persistent. Today’s higher energy prices will translate directly into higher food prices tomorrow (through higher costs for fertilizer, transport, and so forth). Although most EMDEs no longer have fixed exchange rates – as they did during the inflation-prone 1970s – the scope for “truly independent” monetary policy in small open economies remains limited, floating exchange rates notwithstanding. The risk of them importing inflation from the global financial centers is not some relic of the past. Indeed, the most salient feature of today’s inflation is its ubiquity. In the absence of global policy options to resolve supplychain disruptions, the task of addressing inflation is left to the major central banks. While the US is poised to undergo a modest tightening (by historical standards) in 2022, this is unlikely to be sufficient to rein in price growth. As Kenneth Rogoff and I document in a 2013 paper, much of the inflation persistence of the 1970s stemmed from the US Federal Reserve’s tendency to do too little, too late (until Paul Volcker’s arrival). To be sure, a more timely and robust policy response from major central banks would not be good news for EMDEs in the short run. Most would experience higher funding costs, and debt crises could become significantly more likely for some. Nonetheless, the longer-term costs of delaying action would be greater. Because the US and other advanced economies failed to tackle inflation quickly during the 1970s, they ultimately needed far more draconian policies, which led to America’s second-deepest postwar recession, along with a developing-country debt crisis. As the old saying goes, “A stitch in time saves nine.” In the meantime, the resurgence of inflation will continue to reinforce inequality, both within and across countries.

B U S I N E S S 24 .C O M .G H

MONDAY, FEBRAURY 14, 2022

NO. B24 / 305 | NEWS FOR BUSINESS LEADERS

MONDAY, FEBRUARY 14.2022

Awards to spur industrial competitiveness launched An awards scheme to challenge and motivate technology companies to help make Africa stay competitive, especially under the era of the Africa Continental Free Trade Agreement (AfCFTA), has been launched in Accra. The maiden edition of the Africa Technovate Awards and Fair was re-launched by the Africa Integrated Development and Communications Consultancies (AIDEC), the organisers, to pave the way for interested persons and institutions to submit entries. A statement from the organisers said the awards and a fair were scheduled to come off on Saturday, April 2, 2022, at the auditorium of the University of Professional Studies, Accra (UPSA). It said the event would be on the theme: “Information technology and the way forward for Africa under the fourth industrial revolution.” The statement said submission of entries had opened until February 15, as part of efforts to allow for more inclusiveness and to bring out the best in technology, innovation and creativity in Africa. “The technology and innovations awards ceremony is to recognise and reward African technology companies that have blazed the trail for several years and budding young innovative and creative tech companies charting a path for Africa in a fast digitally

transforming world,” it said. The Managing Director of AIDEC, Mr Ambrose Yennah, said the ceremony would be graced by different key stakeholders and a number of distinguished guests who would share knowledge and ideas about their best experiences and practices. He said the speakers would also share experiences on how they had weathered the COVID-19 storm to help guide others. The statement said the Minister of Communications and Digitalisation, Mrs Ursula OwusuEkuful, would be the Special Guest of Honour at the awards event. It said it would be chaired by the Chief Executive Officer of the Ghana Telecoms Chamber, Ing. Dr Kenneth Ashigbey, with the Country Director of Invest in

Africa, Madam Carol Annang, as co-chair. It listed the speakers to include the Chairman of Ghana Dot Com, Prof. Nii Narku Quaynor; the Executive Director of E-Commerce Association of Ghana, Mr Paul Asinor; and the President of the Accra Institute of Technology, Prof. Clement Dzidonu. The statement said the award categories were broadly categorised into three sections: sector awards (silver category), regional awards (gold category) and the Africa awards (platinum category). It said the sector awards would comprise Outstanding Edtech Institution of the Year, FinTech Company of the Year, Health/ Medtech Company of the Year, Digital Agri-Business of the Year,

and the Tech Insurance Company of the Year. It said the regional awards would comprise the Digital Innovation and Creativity Award, Digital Business Transformation Award, Tech Startup Company of the Year Award, Young Tech Startup Company of the Year Award, Blossoming Tech Company of the Year Award, Mature Tech Company of the Year Award, and the Ambitious Tech Company of the Year Award. It added that the Africa awards (platinum) category would comprise Outstanding Digital Entrepreneur of the Decade, Lifetime Achiever Award, Quality Standards Award, Digital Excellence Awards, and the LongStanding Service Engagement Award. Criteria On the criteria for the awards, the statement said the nominated individual or organisation must be registered as an ICT company or service provider in the ICT sector and must show a track record of performance in the technology space. Mr Yennah added that the awardees must have demonstrated creativity, originality and initiative in technology design, and programming, adding that they must also contribute to the development of technology products or solutions in the sector, country or region.

Binance unites J Balvin, Jimmy Butler and Valentina Shevchenko to take on big game crypto ads World’s leading blockchain ecosystem launches consumer empowerment campaign with gameday POAP NFT giveaway. It won’t just be a battle between teams and fans this weekend – crypto companies will be going head-to-head. Brands are recruiting notable faces to promote everything from NFTs to Web3 technologies while Binance, the world’s largest crypto and blockchain infrastructure provider, has partnered with a group of VIPs, known for their honesty and independence, to tell consumers, “Don’t listen to [celebs] about

your financial freedom, learn crypto and trust yourself.” The global campaign – featuring global superstar and entrepreneur J Balvin, all-star basketball forward Jimmy Butler and mixed martial arts fighter Valentina Shevchenko – focuses on encouraging consumers to do the research and learn crypto themselves, so they can be empowered and accountable for their own financial freedom and success. On February 13, for every commercial aired during the game with a celebrity “talking crypto”, viewers are encouraged to sound Binance’s #CryptoCelebAlert

at CryptoCelebAlert.com to claim one of 2,222 POAP NFTs featuring Jimmy Butler. More importantly, they can access an easy-to-read crypto primer to better understand the basics of crypto. “I’ve been experimenting with crypto because I believe it offers new ways to think about financial freedom. Not just for artists, entertainers and athletes but for anyone who is interested and willing to learn,” said Balvin. “One lesson in my career is don’t trust what ‘they’ tell you, do your own research and then decide.” “Many people are interested in blockchain-based products,

like crypto, but relatively few know where to start when it comes to educating themselves on these new technologies. In addition to product and brand awareness, we need to help people understand the basics of crypto and be able to make more informed investment decisions,” said Changpeng Zhao (CZ), Founder and CEO at Binance. “It’s also about helping people be more confident in themselves as it’s better to be your own expert than listen to someone who may not actually understand or care about your financial goals.”

Published by Business24 Ltd. Nii Asoyii Street, Mempeasem. East Legon-Accra, Ghana. Tel: 030 296 5297 | 030 296 5315. Editor: Benson Afful editor@business24.com.gh. +233 545 516 133.