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Maritime sector healthy but needs safeguarding from threats By Patrick Paintsil p_paintsil@hotmail.com
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hana’s maritime sector has shown strong resilience to the virus pandemic, albeit key areas within its value chain have suffered noticeable harm. Global supply chain disruptions and sharply lowered economic growth reduced the volume of cargo that was moved through the nation’s two seaports last year, with adverse effects on maritime service providers including shipping lines, stevedores, brokers, freight forwarders and transporters. The situation did not however stop state revenue from the ports from increasing in 2020 over the amount collected in 2019, an outcome largely credited to the deployment of a new customs management system. Coming out of the pandemic, digitalisation of the port business has intensified, with all the major service providers buying into the trend to bring convenience to business transactions at the port in the most cost-effective way. The Ghana Ports and Harbours Authority has an e-payment platform that allows port users to do transactions via mobile money, Visa and MasterCard in a big boost to its automation agenda, which aims to make doing business at Ghana’s ports easier, faster and more secure. This innovation is further enhanced by the creation of a mobile app whereby clients of the port can validate invoices as well as calculate port charges. GRA Customs has also gone
digital with its receipt of taxes and duties through the introduction of mobile money, bank transfers, Swift and other electronic platforms to bring convenience to payments and ultimately enhance revenue mobilisation. At the same time, its end-to-end valuation system, ICUMS, offers seamless electronic solutions. Shipping lines already have in place a fully digitised platform that can fit in all other electronic innovations from other service providers in the port community. Obviously, such extensive deployment of digital solutions will help reduce the cost and ease of doing business across the maritime and logistics value chain, which augurs well for both the service providers, consumers of those services and the general economy. Discussions on local participation in the sector have been topical lately as Ghanaian investors seek their fair share of fortunes in one of the nation’s most lucrative business spaces. Proponents of this conversation have called for the enforcement of existing legislation that cedes some aspects of the shipping business to Ghanaians, especially the customs brokerage business. Section 43 of the Customs Act 2015 (Act 891) states that a company or partnership shall not engage in the business of custom house agents unless that company or partnership is wholly owned by an indigenous Ghanaian and has been granted a licence by the Commissioner-General of the Ghana Revenue Authority (GRA). Locals in the industry are getting
frustrated by the increasing number of foreigners engaged in customs house business at the ports. Ghana cannot afford to cede the custom house business, which is responsible for employing hundreds of Ghanaian youths, to foreigners, and the issue thus should be treated as a national security problem, says the Ghana Institute of Freight Forwarders (GIFF). Industry think-tank Centre for International Maritime Affairs (CIMAG) also wants the government to weed out what seems like a foreign invasion of the brokerage business. The African Continental Free Trade Area (AfCFTA) project, with its promise of an opened-up continental market, also brightens the prospects for maritime trade activities, but not unless regional governments address the recent surge in piracy in the Gulf of Guinea. More kidnappings took place in the Gulf of Guinea in the first two months of 2021 alone than the entire first quarter of 2020, as piracy and other sea-related crimes continue to be a menace along that stretch of the Atlantic Ocean. The Gulf of Guinea accounted for nearly half (43pct) of all reported piracy incidents in the first three months of 2021, according to the latest figures from the ICC International Maritime Bureau (IMB). In the first three months of 2021, the IMB Piracy Reporting Centre (PRC) reported 33 vessels boarded, two attempted attacks, two vessels fired upon, and one
vessel hijacked. But it appears the industry was forewarned in 2018 when the region recorded about 228 incidents of piracy and armed robbery on sea, after which reports of the menace have been rife. Aside risks to life, experts say increased piracy within the nation’s territorial waters could make Ghana unattractive to vessel traffic, which would in turn drive up the cost of seaborne trade. The likely increase in insurance costs would mean higher freight charges that would have to recovered by importers through passing on the increases to consumers. “International shipping is suffering. Piracy and armed robbery continue to damage the economy and trade. This situation has continued for several years, and these illegal acts must be stopped, and now is the time to make real progress,” IMO Secretary-General Kitack Lim said recently on the issue. It must be said that building a resilient and sustainable maritime sector would require investments in infrastructure and trade facilitation as well as robust security mechanisms that can protect its progressive gains. The blue economy is a sea of opportunities, they say, and Ghana’s marine and coastal resources, including its port infrastructure, hoard that in abundance. It is thus in the nation’s interest for the government and stakeholders to safeguard the maritime sector against any threats to its development.
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Ghana Link’s ICUMS facilitates increase in revenue mobilization
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hana Link Network Services Ltd (GLNS) is Ghanaian owned company incorporated in 2001 and initially went into the business of Destination Inspection in 2003. From that point GLNS continued to expand on its product lines around cross border trade and continue to evolve. In the most recent time, GLNS in partnership with the Customs Division of the Ghana Revenue Authority spearheaded the implementation of the Integrated Customs Management System (ICUMS) under the framework of the UNIPASS solution, an end-to-end trade facilitation, cargo inventory management, security protection and Revenue enhancement solution. ICUMS was born out of a strategic partnership between GLNS and CUPIA to provide an end-to-end clearance and trade facilitation solutions to Ghana Government. In order for a country to facilitate trade, maximize and ultimately optimize revenue collection as well as ensure safety and security at the borders, it needs a comprehensive and modern trade facilitation solution to manage these functions effectively and efficiently. On a global scale, the Korea Customs Management System (UNIPASS) provides a holistic
solution that ensures a paperless working environment, revenue assurance and safety and security. It is based on high achievements of the UNIPASS that ICUMS was born out of the system. The technology has been built to suit the need of Ghana and hence change in name from UNIPASS to the Integrated Customs Management System (ICUMS). The Korea UNI-PASS is internationally recognized for protection of intellectual property (IPR) and this is critical for Ghana, especially as the government through the Ministry of Trade leads a new age of industrialization by working hard to set up factories in all the districts in Ghana, known as the One District One Factory 1D1F. The UNI-PASS is a modern and world-class technology, acknowledged by international bodies such as the World Trade Organization (WTO), the World Customs Organization (WCO), the World Bank, and World Economic Forum (WEF), which is used to facilitate trade, ensure supply chain security and increase revenue. In the same regard, ICUMS also offers importers and exporters an integrated system of filing all documents and allow businesses to provide information regarding consignment simultaneously to
each agency concerned for swift response in trade facilitation. Through the clearance management system in the ICUMS, all customs businesses are currently conducted in a paperless environment with real time cargo tracking through the cargo management system (CMS) and is able to collect bills of lading from shipping lines and agents as well as airway bills from the airlines. Consignments can be tracked by authorized person with various tracking numbers and options. It is important to point out that ICUMS provides all stakeholders the ability to access relevant information as well as able to check the status of the cargo at each stage of the cargo clearance chain. By way of information, the ICUMS was first deployed from the start of March 2020 at selected customs land frontiers. The next phase of deployment was at Takoradi Port from April 1, 2020. Kotoka International Airport (KIA) also went live from April at the close of the month of April, 2020. The subsequent phase of deployment before going live nationwide was done in May 2020, for downstream petroleum operations. The final phase of the deployment at Tema Port and the rest of the country on June
1, 2020. The deployment of the ICUMS has covered all customs regimes and processes for sea, air, land import, export and transitrelated transactions. In terms of capacity building, we have trained over 2,000 internal stakeholders, made up of customs officers, internal auditors and post-clearance audit staff, as well as some 5,500 external stakeholders including Freight Forwarders. The aim of the ICUMS is to continue to build strong partnership with the Ghana Revenue Authority (GRA) as well as other stakeholder to organize cross –border trade information and appropriately make it available to all users for the purpose of revenue collection enhancement, protection of National Security, as well as facilitation of genuine trade. The ICUMS solution is made up of 5 main components: Customs Business, Integrated Risk Management, Single Window, IT Management, and Customs Administration. Each component has various sub-systems that when put all together provides a fully functional e- Customs system which is compatible to Customs business environment worldwide that enable the sharing of information and removal of the need for actors to submit the same
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information to several entities. Other Unique Features The ICUMS platform has a set of features that accentuate its acceptance and implementation over other systems. First, ICUMS has a stand-by human resource management module that facilitates identification of officers who worked on a given cargo and the time during which the work was carried out and completed. Second, tracing missing cargoes or goods under the novel ICUMS platform is very simple. It’s also built to effectively identify the importation of unsafe and fake goods leading to effective preventive measures. Also because of the revenuefocused nature of ICUMS, it has a valuation data warehouse, which is a pre-requisite for proper valuation and revenue collection. Finally, ICUMS has an exclusive tracking device for all cargoes which helps to identify each cargo using a unique reference number. Revenue Mobilization According the GRA revenue mobilization trend, before the ICUMS, monthly average Customs Revenue collection was around GH¢800 - GH¢900 million. However, the CommissionerGeneral of GRA in an interview with the Eye on Port looking at the one year of the CUMS going live country-wide said indeed the system has helped them to collect more revenue than was realized before then. This assertion he says is corroborated by the mobilization of between GH¢1.3 billion to GH¢1.4 billion per month as revenue since the implementation of the new system. At the time of implementation, proponents of the ICUMS platform argue, if in the midst of the devastating COVID-19 pandemic, the GRA was able to rake-in that amount of revenue, then the country stands to benefit a great deal from its full implementation in post-COVID period. Benefits of the ICUMS Notwithstanding, the economic benefits of the port clearance system in the immediate-, mediumand the long-term are expected not only to be phenomenal but help the government to raise the needed revenues to help in its developmental agenda. This also means the much talked about leakages within the port revenue value chain would largely see drastic reduction if not closure. This is because the ICUMS
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has an end-to-end system which does not allow operators to tamper with figures on it. The digital architecture of the ICUMS platform which was deployed by GLNS allows it to fit into the government’s digitization agenda and paperless system proposals. ICUMS provides for swift customs clearance, and to facilitate trade at the country’s ports and borders by cutting cost, reduce the time for goods clearance for all stakeholders. Before ICUMS, valuation and classification as well as risk management and payment were all carried out by different entities which created room for revenue leakages and undue delays in the cargo clearance process at the ports. Under the new the ICUMS platform, the foregoing processes are completed through a single window. To quote Dr. Ebenezer Ashley, Chartered Economist/Financial Consultant, “Indeed, the novel system is intended to present comprehensive and easy-touse digital customs system to the Ghanaian market, without compromising international standards. It is perceived by many analysts as the long-awaited “Messiah” of Ghana’s leaking
revenue basket.” ICUMS is the only technology in the area of trade facilitation, security/safety and revenue mobilization developed by a customs agency aimed at solving customs and trade-related issues. Hence, it is a tailor-made technology. Also, it is important to note that, there is nowhere in the world that a government will allow for such a system to be deployed without piloting it. Indeed, we acknowledge that implementing a national single window system will not happen without initial challenges. However, what is important is that while these challenges emerge, the rate at which one resolves them is what is important, and Ghana Link and its partners have been very swift to resolve all the challenges that have been raised with the system. Conclusion To conclude, ICUMS provides the required tools that makes cross border trading activities faster, simpler, more effective and efficient. ICUMS seeks to offer an ideal trade management solution that provide a distinct positive impact on the day-to-day
operations of ports by proving the users with complete and timely information, important notifications as well as accurate analysis of data. Timely exchange of accurate and proper information with suppliers, customers and other stakeholders ensures benefits for all stakeholders and the country as a whole. In the simplest form, ICUMS solution organizes cross border trade information and make the information promptly and easily available to all authorized users and stakeholders. Born of the UNIPASS technology, it is used by many countries around the world and is fully operational in countries like Ecuador, Nepal, Mongolia, Guatemala, Kazakhstan, Kyrgyzstan, Dominican Republic and Uzbekistan. In Africa, Tanzania and Cameroun have adopted the UNIPASS. It is operational in Tanzania, but yet to be fully deployed in Cameroun. In Tanzania, the introduction of UNI-PASS (called TANCIS) in 2012 led to revenue increase of $390 million in 2013, $495 million in 2014, and $651 million in 2015.
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transforming their businesses through technology such as blockchain, artificial intelligence, cloud computing etc, we cannot remain reactive. We are in a digital world and our way of thinking must reflect that at all times.
Interview
he increasing boldness of pirates along the Gulf of Guinea stretch is worrisome and concerted efforts must be deployed to put the menace to check. Also, to fast track the nation’s recovery from the resurging pandemic, there is the need for government to protect both its international trade and port revenue. Jeffrey Botchway, a lecturer at the Regional Maritime University and Chief Executive Officer of the maritime consulting firm, Masser Afrique, tells us more in this exclusive interview.
Q: What are the existing opportunities for jobs in the maritime sector?
Q: How much will the shipping business change after the pandemic? A: There has been a global shock as a result the pandemic, from multibillion industries to the street hawker, and the shipping industry has not been an exception. Covid only highlighted the serious impact of the shipping industry on global trade. We have already experienced some changes, aside issues concerning cost and other related matters due to demand and supply issues I would like to concentrate on two major things I believe would change after the pandemic. A seemingly traditional industry will embrace technology at a faster rate; the pandemic has forced the industry to reduce physical interaction and transformed some business models. You either adapt or die! There should however be no reason to fear, the beauty of this is embedded in the fact that history has always demonstrated the adaptability of the industry. The sea won’t get dry, global trade won’t cease and we will see a sharp increase in new industry jobs after the pandemic. The humanitarian aspect after the pandemic is also worth noting. The safety of seafarers would be made paramount. We would see a lot of improvements on matters pertaining to their conditions of service after the pandemic. Q: What are the foreseeable risks of rising piracy in the Gulf of Guinea on Ghana’s importexport business? A: Personally, I find the increasing boldness of pirates is worrisome. The foreseeable risks of rising piracy on Ghana’s import and export business will be evidenced in costs; high freight rates as a
result of our Exim trade routes being at risk, insurance premiums and also remember, all surcharges on security whether at port or at sea will have to be passed down, but to who? But I must be quick to point this fact out, Ghana is not sitting unconcerned, neither are the countries around the Gulf of Guinea. We are reforming our legislations on matters pertaining to piracy and some of our neighbours such as Togo and Nigeria have also recently convicted and sentenced some pirates. There is the need to protect our trade and also our revenue. Potential revenue lost by the Government of Ghana as a result of trade route avoidance will also see a ripple effect on unemployment across the local industry. Q: What practical steps must be taken to secure local interests in the maritime industry? Education, and awareness creation. You simply cannot be interested in something you are not privy to. We are doing our best, but our best must be intentional and intensified. Firstly, People must know about the industry and understand how it affects their daily lives. Industrial opportunities must be promoted and locals must be better placed to be able to enjoy benefits of the intended Cabotage Act. Can you imagine the level of advancement we can attain within the industry if we had a
similar programme like the Eye on Port in local languages? We must also not underestimate the talent pipeline we will be able to groom as a result of sensitisation of students at junior and senior high school levels. I also believe we must tell our maritime stories. Maritime history in this country means Black Star Line and the formulation of the Nautical College by Kwame Nkrumah. Our people deserve to hear some wonderful stories pertaining to maritime relates issues, places and things. I propose a Maritime Museum for this. Q: How can digitalisation propel profitability across the maritime value chain? Time is money, and digitalisation essentially saves you a great amount of time. That to me is profit enough. Just this year, ICUMS, our single window for document processing was reported to have generated GH¢18.1 bn. Need I say more? We need to step up with digitalisation to remain globally competitive. As it stands now, I hold the view that the Ghanaian maritime industry is not digitally matured. Let us not limit the digitalisation discussion to ICUMS, we could get digital freight forwarders, chandlers, ship brokers etc. Let us provoke discussions on digital communication and encourage a digital approach on the entire value chain. The World Economic Forum reported that organisations are
A: My interactions with many over the years have demonstrated the knowledge gap on matters relating to job opportunities in the Ghanaian maritime sector. A large number of people outside the industry seem to think maritime is about clearing and forwarding if not “marriage”. Others on the other hand also think maritime education means you must be employed at the Port or work with Ghana Maritime Authority. The industry is a sleeping giant and pregnant with a lot of untapped opportunities but we must first deal with some preconceived notions like the ones I earlier mentioned. In identifying the opportunities, one must consider the entire value chain. Where is the money? Depends on where you are standing. Ship recycling, finance, maritime security, marine spatial planning, maritime tourism, underwater photography etc. In the American gold rush those who made money did not mine for gold but sold shovels. Q: How would you assess gender balancing in the maritime economy and what would you recommend? A: I am unapologetic about my desire for a gender equal maritime space. However, we must first admit it is a male dominated industry. This is the first step in exploring approaches a gender balancing. We may not get a large number of ladies going to sea, that is alright. But we must make the entire industry attractive and accommodable for women. I take note of the recent launch of the Women in Maritime of West and Central Africa and other sister organisations such as WIMA Ghana, WISTA Ghana etc. Their efforts towards this agenda is highly commendable. I must also commend the Mad. Rekia Larteykaa Torgbor of CMTDYW for her role in mentoring younger women into the maritime space. Kudos to all other women arduously shining the bright light in national, regional and international maritime space.
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GEPA says exports sector primed and ready for continent-wide market By Patrick Paintsil p_paintsil@hotmail.com
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hana Export Promotion Authority (GEPA), the state exports facilitator, is in a strong position to be the backbone of export-based businesses competing in the African Continental Free Trade Area (AfCFTA), with a plan to hand-hold and groom especially small and medium enterprises to play actively in the continental market. A bold decision to go digital with its trade-enabling activities, with add-on investments in capacity building and mentorship across the value chain, has repositioned the authority to help Ghanaian exporters maximise the benefits of continental trade. “Everything is set for us to play very well in the AfCFTA market. Our systems are in place, and so are the main pillars that are required of signatory states to be able to boost intra-Africa trade. There are a number of processing companies setting up now, and ours is to give them marketing support,” said GEPA’s Director of Projects, Alexander Dadzawa, in an exclusive interview with Business24. He added: “We are ready; we now have to do proper market research to identify the opportunities in those markets, then we can support the companies to go take advantage of them. We are good to go. Ghana is good to go. GEPA is good to go.” As a dynamic institution, the authority has adjusted swiftly to the new normal by taking a good step to go digital with its processes and trade-specific activities to enable it perform its critical role of creating market access and global exposure for Ghanaian export businesses. With its foresight and readybusiness mindset, it has continued to execute its mandate seamlessly right from the onset of the pandemic, offering the requisite capacity building linkages and support to its clients. The pandemic has negatively impacted the production capacity of exporters. At the same time, the usual physical market linkage activities they leveraged to sell their products and services and build partnerships have almost ground to a halt, but GEPA came good with innovative digital solutions.
It moved its activities such as trade fairs, B2B meetings, webinars and other capacity building exercises to the virtual space, using Zoom and other virtual platforms to continue serving its clients amid the virus crisis. “Our major strategy now has been to move away from taking companies to trade fairs and other B2B platforms physically; we are now doing more of virtual and online. I think that this is the way to go, looking at the pandemic and the fact that it would take some time to settle, and we have to adjust to the situation. However, as we see the situation easing, it’s going to be a hybrid of both physical and virtual events,” Mr. Dadzawa indicated. Currently, GEPA has boosted its web portal called “The Market Hub” with more resources and information on Ghanaian products and services. The authority has also established an ultramodern virtual trade information centre called “The GEPA Impact Hub” within the AfCFTA Secretariat building in Accra. The centre, a sort of digital library, has useful resources that SMEs, export-oriented businesses and any other person interested in the exports business can use to acquire relevant knowledge. It is a congenial set-up with computers, B2B meeting rooms and Zoom facilities.
“Gradually, people are making use of this facility, and we feel that’s the way forward,” said GEPA’s director of projects on the new resource centre. At the centre of these interventions is the desire to build the right competences, competitiveness and robust support systems that will be the springboard for the nation’s participation in the AfCFTA. GEPA also intends to provide guidance and direction to export businesses that benefit from government financial support, ensuring that they channel the help towards becoming ready and competitive for the single market. The authority has set targets for the AfCFTA in the National Export Development Strategy (NEDS), which was launched last year to coincide with the opening of the AfCFTA Secretariat in Accra. The strategy seeks an ambitious US$25bn in non-traditional exports revenue within the next decade. Revenue from non-traditional exports stood at US$2.9bn in 2019 and probably stagnated in 2020 on account of the coronavirus shock. This means the authority has already lost one year in its ambition to grow non-traditional exports revenue to reach the 10year target. It is, however, hopeful that arrangements and new ways of doing business would help keep
the plan on track. “Our response mainly has to do with how we can take advantage of the AfCFTA market. That’s our focus now, and fortunately, the ground is ready for us and Ghana is ready. All the structures have been put in place; we have our industrial policy being championed by the Trade and Industry Ministry within the 1D1F. What we are going to do as GEPA is to provide that support to all the structures that are in place so that the companies under our fold can take advantage of them. We are currently doing needs assessment for a lot of these companies,” said Mr. Dadzawa. For impactful empowerment and lasting productivity of local exporters in the AfCFTA, GEPA has adopted a “20-100200” strategy, which is a more targeted approach to hand-hold and empower exporters that have huge potential to exploit the continental market, starting with the first top-20 companies. Proposals for this initiative have been prepared and will soon be rolled out, according to the authority, pending the completion of specific need assessments of the selected beneficiaries that will enable them to double their output. “The steps that we are taking are in the right direction, and we expect some results to come,” he said.
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Summary Report on GEPA’s Accra Art and Craft Market Exhibition – July 1.0 Introduction Ghana Export Promotion Authority collaborated with the Accra Arts and Crafts Market to organize the second edition of an art exhibition event for local producers of handicraft. The event was hosted at the W. E. B. Du Bois Memorial Centre in Accra-Cantonments and hosted over sixty (60) exhibitors graced the event with their unique products. There was a distinct increase in the number of participants from the last event. We had representatives from Trade Aid Integrated, Bolgatanga to be part of the exhibition. Products such as Beads, Batik Tye/Dye, Brass crafts, Woodcrafts, Basket ware, Ceramics and beautiful paintings were all on display for visitors and expatriates. 2.0 Objectives As a Trade Promotion Organization and a collaborating partner, our objectives for the exhibition are as follows: • To continue to build and establish awareness of the beautiful handmade products being produced by our local artisans across the country. • To create opportunities for new and developing handicraft companies to exhibit, establish contacts with buyers
and sell their products in the process. • To continue to search and identify companies with unique products to introduce to the international market. • To provide visibility to new upcoming handicraft companies, yet to establish themselves on the craft market. 3.0 Activities • Sixty (60) companies registered and showed up to display their products, an increase of Fifteen (15) companies from the previous Forty-Five (45). • There was high patronage from foreigners and local art enthusiasts who came to buy and make orders and for some products on display. • Media houses were present to cover the event for publication and advertisement for future iterations of exhibition. • Queries from artisans revealed that most had made sales on the day and were excited for the next exhibition to continue to expand their market. • The participating companies commended GEPA and the AACM for their initiatives and collaborative efforts to help elevate the arts and craft sector in Ghana. 3.1
Visit of GEPA CEO
Dr. Afua Asabea Asare, CEO of GEPA, attended the event and, as usual, interacted with vendors, expressing her keen interest in the aesthetic art works on display. She also praised the exhibitors for their ongoing enthusiasm and creativity in helping to elevate the craft sector. Speaking on behalf of the CEO of GEPA, Dr. Afua Asabea Asare, Export Development Officer from the Public Relations Department of the organisation, Robert Amoakohene said GEPA is an important contributor to this project because we recognize the value of the arts sector and its economic potential for the country and urged Ghanaian art dealers to explore new ways of doing business through social media marketing and e-business 3.2 Companies with unique Made-in-Ghana product • Emie Wear Enterprise Bags and Slippers • Vea Enterprise - Beads • Doxa Julleys classic Clothing • and A Creation - Smock/ beaded bags/ leather slippers • Row Leather - Leather products • In God we Trust Enterprise - Brass work • My Real Brother - Wood Carvings
• Ama K. Crentsil Collection - African print and accessories 4.0 Recommendations • GEPA should consider engaging radio advertisement and social media to market the exhibition event, two weeks prior to the set date. • An extension of the exhibition to a two-day event would greatly see an increase in sales of artisan, as to allow visitors to reschedule if one set day is inconvenient. • GEPA should look to host similar exhibition programs in other regions, preferably Ashanti and the Upper East Region. This would predictably expand the draw of handicraft products in the country. 5.0 Conclusion So far, there is reason to believe that the exhibition's organization has increased awareness of the various handicraft artworks produced by our local artisans. Because of the significant increase in demand for their products, more artisans have expressed an interest in continuing to participate. Media houses have also bought into this program and moving forward, the program looks set play a main role in the development of the Ghanaian Handicraft Industry.
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Interview
anaging Director of Ghana Link Network Services Limited, Nabali Bawa, shares some practical measures that must be deployed to facilitate the nation’s quest to build a resilient maritime economy. He also touches on the pros of digitalization in the sector and how the rising threats of piracy could be handled. Q: How has the pandemic affected your operations, and what measures have you deployed to mitigate the impact? A: The pandemic brought delays in shipping lines offloading their cargo initially, as COVID-19 protocols had to be complied with strictly. We saw the volume of cargo to the sea ports drop, which affected transshipment to the landlocked countries of Burkina Faso, Mali and Niger that use our ports (Tema and Takoradi). Administrative work at the office was impacted as we had to result to a shift system as a form of decongesting the offices and adhering to the social distancing and other protocols to protect staff and stakeholders. Another important thing we did as part of measures deployed to mitigate the impact, was ensuring the efficiency of the tracking units to ensure that the few goods that are in transit at the time do not end up on the local market to prevent loss of revenue to Ghana
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and intended destination country. The Integrated Customs Management System (ICUMS) platform is regularly updated to ensure that all the stakeholders can discharge their duties without any hindrance to facilitate a smooth customs clearance process. Also, as a company, we have provided personal protective equipment (PPEs) to our staff including making wearing of mask compulsory in the work environment, and staff and visitors are required to comply with all other the COVID-19 protocols both within and out of designated working area.
additional measures, on top of current efforts, should be adopted by the Ghanaian and other regional governments to address this problem?
A: I think shippers must be prepared to pay high insurance premiums going forward as the risk levels seem to becoming even more high for ship owners. Also, we are likely to see industry players diversifying into other businesses. This is because ship owners in their quest to maximise or cut cost with increasing number of days they are likely to spend when they dock to discharge, translating to higher docking fees, will have no other option than to raise the fees because of their extended stay at the port.
A: The rising piracy in the Gulf region is a problem which could also increase freight and insurance costs on shipments. This I must say could reduce the volume of imports and exports to this part of the world or continent. This can lead to shortages in imported goods and raw materials and a subsequent rise in the cost of goods on the local market as well. From where I sit, I do know that, the authorities are doing all they can to end this but the measures to be adopted to prevent piracy must include increased surveillance on the ocean, putting armed guards on ships and having stiffer punishments for pirates when they are captured. We must also enhance intelligence gathering and sharing among member states along the Gulf region. There is also the need to equip the Marine Police and Ghana Navy even better with more high-speed boats and other surveillance gadgets to patrol and respond swiftly to attacks as well as build capacity in the areas of crew rescue and negotiation skills. Not forgetting have joint operations with neighboring countries along the Gulf coast.
Q: What is the implication of rising piracy in the Gulf of Guinea on Ghana’s importexport business? What
Q: In your opinion, how can digitalization propel profitability across the maritime value chain, and how would you
Q: How much will the shipping business change after the pandemic?
assess the level of digitalisation in the maritime space so far? A: There is a gradual introduction of digitalization in maritime value chain activities which will propel profitability in the sector. It will speed up operations and enhance efficiency and drastically reduce what many refer to as corruption. As with the introduction of the ICUMS, today we have the clearance plan which is known as Pre-Manifest, which allows the importer or the clearing agent the opportunity to pay for goods by submitting the Bill of Entry into the system and Customs is able to access the issue the Bill of Tax which payment is done ahead of the arrival of the imported goods. This has contributed to cost of doing business reduce i.e. clearance cost as our ports and reduced the turn around time for clearing goods as well. So you see, with digitization, clearing agents will know when their goods will be arriving through real time tracking and so prepare adequately for them whilst Customs can begin working on declarations before they arrive at the ports and that will ultimately reduce cost such as demurrage, and improve the ease of doing business in the port. Q: What practical steps must be taken to secure the jobs, investments and livelihoods of Ghanaians in the shipping business amid the resurging pandemic?
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A: To protect jobs and maritime investments, I will suggest the state should ensure that all businesses in the sector are insured. In this trying time of the pandemic, government could extend the tax payment duration, either reduce or give some rebates of taxes to make it affordable and grant tax waivers to companies that are still keeping their employees in work. Providing interest-free loans or subsidized loans to businesses negatively affected by the pandemic will also not be a bad idea. Investments in port infrastructure will be critical and employees should be prepared to work longer hours if necessary. Q: How are you working with businesses in the sector to overcome the impact of the pandemic on their businesses and the industry in general? A: Since we provide the platform first and foremost for the Customs Division of the Ghana Revenue Authority (GRA) and the other stakeholders to operate within the trade facilitation chain, our responsibility has been to ensure that the ICUMs work perfectly to reduce delays during the customs clearance process. Consequently, the system undergoes regular maintenance and updates as I initially indicated to you. Equally, we have improved on the tracking system of the transshipment of goods to prevent revenue losses. Adequate trackers have been procured to facilitate the affixing of same on trucks in transit as well.
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Q: How would you assess the transit and transshipment business amid the pandemic and what measures would you recommend to grow that sub sector of the shipping business? A: Inflows of transit cargo have been negatively affected over the period not only because of the covid but also as a result of delays by cargo drivers who cut the goods from our ports to the destinated countries. What we have seen is that, they stop long hours or days when in transit from our Port especially Tema, some cars easily breakdown frequently or the drivers overload the vehicles and so want to travel only in the night not to encounter the security or our patrol teams. This also affect us as a company. We give out these tracking devices with the estimated time for return to our teams at the borders like, Paga, Hamele, Elobo and others being 10 days, so imagine when in 30 days which is a month the tracking device is still not disbanded from the vehicle because is still not at the border. Some of these drivers I don’t know whether they connive with importers or agents and tamper with the tracking device. I say this because sometimes before you realise the device goes off while in transit or before its disbanded at the point of entry to destinated country border, may have been tampered with. We have introduced new measures and new type of devices and have indicated to the agents and importers that, if a device which is in very good condition is
affix on a vehicle and in transit, we notice any problem or tampering they would be made to purchase it and pay penalties as well. On this point finally, to improve on the transit and transshipment businesses, there is the need to take a second look at the charges at the ports and make it competitive in the region. We must offer seamless customer services to transit traders who do business through our ports and ensure utmost security of their cargo. Additionally, apart from the customs clearance process other clearing processes should not be frustrating by making sure it’s always up and running. Q: The Africa Continental Free Trade Area is the biggest economic initiative on the continent. How big is the prospect for Ghana, and in what ways can make the most from this big market? A: The prospect for Ghana is massive because it has ratification of about 22 African states, promoting inter-African trade. Let me say that the African Continental Free Trade Area (AfCFTA) Agreement can be a game-changer for African businesses especially in Ghana if properly implemented. A similar view is held by the African Development Bank (AfDB) during a panel session at the 2021 WTO Aid-for-Trade Stocktaking meeting held on Wednesday, March 24, 2021. As of January 1, 2020, we at Ghana Link Network Services with our stakeholders were ready to help businesses to take
advantage of the AfCTA. Just to remind you and your readers that, we were able to help two companies to export using the AfCTA platform on the first day when the agreement begun implementation. The companies are beverage manufacturer, Kasapreko, and cosmetics firm, Ghandour Cosmetics. They were the first two companies in the country to take advantage of the African Free Continental Trade Agreement (AfCFTA) since its commencement on January 1, 2021. These firms worked with us and Customs and obtained the necessary documentations and certifications for waivers of duties and tariffs on exports to African countries under the trade agreement. This is indeed a good testimony. Ghana can gain a lot under the AfCFTA by focusing on its comparative and competitive advantages in the processing of agricultural produce. Look, we may be the small West African country with insignificant presence in the world economy. Yet economic opportunities in various sectors of our resilient economy really abound. People may claim that the Ghanaian economy is in the doldrums due to acutely unfavorable economic conditions. But with priceless passion, efficiency, hard work, smartness, and innovation; one can make a rare fortune in the course of time. AfCFTA is one of the opportunities that MSME’s must take advantage to expand and grow their business.
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Modern World Logistics, AXIX GP partner to train youth in hybrid aircraft production Chairperson of International Trade Council and Chief Executive Officer of Modern World Logistics, Solomon Addai, is leading US-based aircraft maker AXIX GP Inc. to Ghana to train Ghanaian youth in the manufacturing of nextgeneration hybrid aircraft. According to him, the move will be in line with government’s flagship program One District/ One Factory policy. He said the initiative which has been supported by the Member of Parliament for Anyaa Sowutom Constituency, Dr. Adomako Kissi, would create employment for the teeming youth in the country. “AXIX GP will manufacture prospective technologies in multiple municipal districts and constituencies in accordance with One District/One Factory concept to create more jobs for the youth,” he said. AXIX GP will assist in the development of a permanent S.T.E.M.-based education and professional technician program in Ghana to secure a technologically prepared 21st century workforce. The company which intends to establish its branch in Ghana [AXIX GP International Ltd] would be situated in the Greater Accra Region. Chief Executive Officer of AXIX GP, Laviere Rice, on his part said, the company would engage the public to implement a system of establishing and maintaining a S.T.E.M. trained workforce in Ghana and Africa at large. “We have a business and products that will create jobs, but we need to ensure that the youth and others have the education and training to compete and sustain employment in the current and future workforce. “Preparation is the key, and we need the people of Ghana to understand they have a major responsibility in this as well. A Transfer-of-Technology (ToT) only works when the people buy in 100%. This is about the future, and our place in it,” he stated. Adding that the company would advocate and implement 3D/4D additive manufacturing technology and hardware science for any applicable industries such as farming, construction, medicine, and housing among others in Ghana to improve the 21st century manufacturing technology capabilities of Ghana and Africa.
He stressed that, AXIX GP would develop leaders and technology experts responsible for delivering high quality products to the global economy. “It would also develop a process of sustainable growth of industry jobs via direct and indirect sources,” he said. Mr. Rice maintained that, the company would improve and maintain the overall “Health” of the communities in which they operate. “Absentee gentrification will be our policy, moreover any urban/
rural redevelopment we engage in will not displace residents; only improve their community,” he added. He said it would identify alternative approaches to traditional business opportunities; to develop concepts that would change the future by leveraging R&D resources, to launch disruptive products in markets and businesses. AXIX GP International is an additive manufacturing company which deals in the
manufacturing of 3D printed, hybrid powered, vertical takeoff and landing (VTOL) aircraft called the SkyRider. AXIX GP intends to develop and manufacture SkyRider products such as: Multi-purpose Aircraft Transportation Vehicles (MATV), Sport Utility Vehicle Aircraft (SUVA) and Urban Air Mobility products/components, aviation infrastructure, commercial jetliners, defense, space and security systems, spacecraft in Ghana and Africa at large.
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MARITIME SECTOR AT A GLANCE Ghana’s trade statistics as at Q2 2021 • Total merchandise exports
US$7,573.2m (2.7pct over 2020)
• Total merchandise imports
US$6,755.6m (5.7pct over 2020)
• Trade surplus
US$837.5m (1.2pct of GDP)
• Current account deficit
US$926.1m (1.3pct of GDP)
• Payments surplus
US$2,369.7m (2020: US$1,009.9m)
• International reserves
US$11,026.9m (5-month imports cover)
Big-ticket earmarked projects in the sector •
Boankra Inland Logistics Terminal (BILT
•
Altantic Terminal
O
n November 2020, President Nana Addo Dankwa Akufo-Addo cut the sod for the construction of the Boankra Integrated Logistics Terminal (BILT), a project that had been on the drawing board for close to two decades. The facility, which is valued at US$330m, would offer respite to shippers in the middle belt of the country, serve as a conduit for efficient carting of transit cargo and reduce the pressure on the nation’s two seaports. The BILT will host an inland
T
he first phase of the ongoing Atlantic Multipurpose Terminal project, which is currently 71percent complete, is expected to be delivered by the end of November this year at the latest. The US$ 210m project broke ground in August 2019 with Jan De Nul Civil Engineering company as the contractor and Royal Haskoning DVH as the consulting
•
Port of Keta
P
ort of Keta will be the nation’s third sea port and will offer new opportunities for the Ghanaian port industry and also provide jobs. It will also be a privileged gateway for neighboring landlocked countries. In June 2020, the GPHA commissioned the project team consultants to deliver a full feasibility study and masterplan,
clearance depot, customs bonded and unbonded estates, commercial areas such as banks, offices and trading facilities, vehicle parking areas, light industrial areas, and an administration complex. The concessionaire, Ashanti Ports Services Limited, a joint venture of Afum Quality Limited of Ghana and DSS Associates of the Republic of Korea, is expected to design, engineer, finance, procure, construct, operate, and maintain the project, and transfer title to the state after 30 years.
engineer. So far, the dredging of a 600m quay wall with -16m depth is completed, with the construction of the capping beam and terminal’s yard space of 10 hectares ongoing. The terminal is the first locallyowned container yard investment across the whole of Africa, with Ghanaian firm IbisTek Ghana Limited as the concessionaire.
including development and investment strategy for the port. That exercise marked a significant milestone towards the realization of the project. A project office has been constructed in Kedzi in the Keta municipality to serve as a reference point for all developments associated with the Keta Port Project.
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