Investment Times Newspaper 2023 Edition | Issue 26

to r y c am e just d ays a f ter Fede ral Re se r ve Chair Je ro m e Powe l l as su re d C o nof A m e r i c a’s b a nks was s ound B ut the timi n g sh ould not be surp r i sin g G iven th e l ar ge and rapid i nc re as e s in in te re st rate s Powe l l e n -

gine e re d – p robab ly sinc e for m er Fe d Chair P au l Vo l c ke r s in te re st - rate hi ke s of 4 0 ye ars a go – it was p redi c ted th at d ram ati c

in te re st- rate hi ke s of 4 0 ye ars a go – it was p redi c ted th at d ra m atic

Bu t , a g ain, Powe l l a ssu re d us n o t wor r y –d e spi te abundant h i sto r i c a l exp e r i e nc e i n -

B u t , a g ai n , Powe ll a ssu re d us n o t to wo r r y –d e spi te abundant h i sto r i c a l exp e r i e n ce i n -

sh ou l d be wo r r i e d Powe ll was pa r t of fo r me r P re sid e nt D o na l d Tru m p’s re g ul ato r y te am th at wo rke d to we a ke n th e Dodd-F rank bank re g ul ad ow n, in o rd e r to f ree “s m all e r ” ba n ks f ro m th e s t a n da rds a pp li e d to th e lar ge s t , s ys te mi c al ly i mp o r t an t , banks By the s t anda rds o f Citiban k , SV B i s s m all B ut it ’s n o t s m all in th e l ive s o f th e m il l i o ns wh o de pe nd o n i t Powe ll said th at th e re would b e pain as th e Fe d re le ntl e s sly ra i s e d i n te re st rate s – n o t for hi m o r m a ny o f h i s f r ie n ds in p r ivate c a p i t al, wh o rep o r te d ly we re p l annin g to m a ke a ki l lin g as th ey ho pe d to s we ep in to b uy uni n su re d d e p o sits in SV B at 5 0 - 60 cen ts on th e d o lla r, b e fo re th e govwould b e p ro te c te d. Th e wo rst pai n would b e

Absa Group rep or ts strong earnings; remains well p ositioned for grow th

Abs a G roup re po r ted s t ron g no rm a l i s e d h e adlin e e arnin g s of R 2 1 a n i n c re ase of 13pe rc e nt f ro m the p r i o r ye ar a n d we l l ab ove p re- C ovid l evels -

whi c h, i n turn, wa s d r iven by ve r y s t rong reve nue g row th of 15% to j ust under R10 0 billio n

g row th wa s tempe red by a 6 1% i nc re a s e in impair m ents. Th i s re-c an t Gh a na s ove rei g n debt re l ated

“Our c ons i s te n t s t rate g y exe c uti on p roduced s t rong re sults in 2 02 2 ” said Ar r i e R au te nba c h,c e r “ We beli eve i n our s t rate g y, a nd we h ave mome n tu m behind us Al o ng with a s t ab l e and exp er i ence d l e ader ship te am, I a m sus t a in a b ly a chi eve our t ar gets , ” he s a id

Abs a’s cus tomer base g rewin g s an d e nhanced digi t a l p l atfo r m s I n S outh Af r i c a, Abs a’s l ar ge st m a rke t , the number o f c us to m e rs in c re ased to 9 7 mi ll i on f ro m 9 6 milli o n, with digi t a lly a c t ive cus tomers in c re asin g 10 % a s s t a bili t y imp roved and fu n c ti o n a li t y was e n r i c hed m a rket with G o o gle Wa l let and th e ro l l out of the Ab by c h atb o t; over t wo million e n ro l l m ents in 15 awa rds in the di g i t a l sp a ce, i nc ludi n g B e st Digi t al Bank in S outh Af r i c a , Mau r itius a n d Tan z ania

Key m e t r i c s includin g return o n e qui t y and cost- to - i n c om e ratio c o n ti nu e d to im p rove a s the G rou p c onti nu e s to de l ive r a g a i n st its g row th s t rate g y ad o p te d in 2 0 18 a nd whi c h was ref re sh e d l ast ye a r

“ We a re building a s t ron g and c o n s i s te nt t ra ck re co rd o f de l iv-

e r y a g ai n st our s t rate g y a nd we a re we ll p o sitioned fo r g row th,c u l t o p e rating e nvi ron m en t ” said

Jas o n Quinn, Abs a G roup Fina nc ia l Di re c to r

The G rou p c a pi t a l p o siti o n rem ains ab ove the B o a rd a pp roved t ar get ran ge and the C o m mon

E qui t y Tier 1 rati o was s t ro ng at 1 2. 8 % The G roup lo an c ove ra ge rati o of 3 9 % re m a ins robust a nd we ll ab ove the p re - C ovid pos iti o n

B usi n e ss unit per for m an c e pa r t of its j ourn ey to enhan c e m a rke t co mpetit ive n e ss, whi l e a l s o i m p rovin g its t rans fo r m ation p o sitio n. I n e ssen c e, the G roup has m oved f ro m t wo c o m me rc i al busi n e ss e s - C o rpo rate a nd I nve s t m ent B a n kin g (CI B ) Pan -Af r ic a and Re t ai l and Busin e ss B a n kn e ss units. P ro du c t S o lutions C l us ter (m o r tand non -l i fe i n su ran c e p rodu c ts as we l l as an i nve s t m ent p rodu c ts and adv i so r y se r vi c e s i n SA)

He adline e arni n gs in c re a sed by 2 6 % to R 3 5 bi ll ion, d r iven by the re c ove r y in the in su ra n c e bus in e ss, whi l e the l endin g busin e s se s - main t ained ba l an c e she e t g row th m o m entum, no t wit hs t a n din g the i m pa c t of the we a ker m a c ro e nvi ron m ent and su pp ly c h a in cha l le n ge s. R i sing i n te re st the no n - re cur ren c e of 2 02 1 mode l i m pairm e nt c h a r ge in c re a s e ye a r- on -ye a r Eve r yd ay B anking (d ay- to - d ay banking p rodu c ts and se r vi c e s in SA)

He adline e arnings we re u nc h a n ge d at R 4 1 bi ll i o n a s higher unit re g i s te red g row th in p e rso na l lo ans, c re dit c a rd s a l e s a nd sa l e s o f t ra nsa c ti o na l a c c ounts

Re l atio n ship B anki n g ( busin e ss bankin g , we a l th, c om m e rc ia l

He ad l in e e a rni n gs in c re a sed by 8 % to R4 bi l lion as the unit re g i ste red s t ro ng g row th in th e co mme rc i al s e g men t , no t ab ly in sp ec i al i s e d l endin g , c o m me rc i a l p ayme n ts and a g r i p rodu c ts

Abs a Re giona l Op e rations (A RO)

R BB ( re t ai l , busin e ss banking and in su ra n c e p rodu c ts and se r vi c e s a imed at ind ivid u al s, s m a ll to mediu m en terp r i s e s a nd c o mme rc i al cus to mers )

He ad l in e e arnings reb ounded to R1 1 bi ll i o n f ro m R1 0 6 mi l li o n, due to a c o mbin ation o f s t ro ng g row th a nd l ower imp a irm e nts

The a c t ive c us tomer base i nc re ased to 1 7 mi l li o n f ro m 1 6 mi ll ion a ye a r e a rl ie r

C IB P a n -Af r i c a ( spe c ia l i st i nve s tme n t b a nkin g , c orpo rate a nd r i sk m a na gemen t , adv i so r y p ro du c ts and se r vi c e s )

He ad l in e e a rni n gs in c re a sed by 9% to R9 bi ll ion as reve nue rose a c ro ss al l busin e ss a re as and a s so l id g row th wa s a c hi eved in the cl ient f ra n c h i se, pa r ti c u la rly as th e nu m ber of p r im a r y b a n ke d good reve nue g a i n s was p a r tia l ly im p airments, p a r ti c ul a re su l t of c h al lenging m diti o ns in We st Af r i c a An Ac t ive Fo rc e fo r G o o Du r ing th e ye a r Abs a m re ss in fu r ther e l evatin po rt a n c e of sus t ainabili in te g ral p a r t o f G roup s p a r t o f its c om m i t m ent a n a c t ive fo rc e for good thing we d o Within th c i al i n c l usion and p ro moting versi t y and in c lusion a s a re a s Abs a re g i s te red mil e s tone op m ents in sus t ain a ble a nd fu n ding a nd c onti build on its l e ader ship a s j oint m a nd ated l e ad

Ghana remains C ommitted with IPU-

S p e a ke r o f Pa rliamen t , A l ban Su mana Kings fo rd Ba g bi n , has a ssu re d o f Ghan a s com m i t m ent to coll abo rate with the I n te r- Pa rl i ato le ra nce and p rom o te p e a c eful c o - ex i s te nce in so c ieti e s Acco rdi n g to him, th i s i s the on ly su re way for the wo rl d to kn ow t ru e p e a ce and p ro spe r i t y In a sp e e c h at the 14 6th I P U A ssemb ly i n Ma n a ma, Bah ra in, the Sp e a ker tou ted the va lu e s of go o d de m oc rati c gove rnanc e whi c h the Gh ana i a n p a rl iam e nt i s t ran sl atin g fo r Add re ssin g pa r ti c ipa n ts at the co n fe renc e, Sp e a ker B a g bin said th i s i s evident in the l a r ge ge nder pa r i t y del e g ati o n the Ghanaian pa rlia me nt s e nt to the c on fe ren c e to fu r ther the c ours e o f the theme an d hu ma ni t y as a who l e

The S p e a ker a ls o added c har ged l e g i sl ato rs a c ro ss the wo rld to en -

Bagbin assures

c ou ra ge to l e ra n c e and in cl us ive d eve lo pm e nt th rou g h the l aws th ey p ro mu l g ate

S o me 2 ,700 de l e g a f ro m m o re than 17 9 a c ro ss the g lo be h ave g

uti l i t y- s c a l e ren ewa b l e e ner g y c apt ive p ower p ro je c t , c o m p r i sing 2 0 0 M W o f so l ar p owe r, in on e of s eve ra l t ra ns a c ti o ns th at add e d to the bank ’s g row ing ren ewab le e nergy p o r t fol i o Absa a l so m ade p ro g re ss ins t a nc e , Absa Ho m e L o ans h ous e d c lo s e to 7,0 00 h ous eho l ds th rough a R2 bi ll i o n so c ia l lo an secu red f ro m th e In tern ation a l Finan c e C orp oab l e - h ousin g b oo k in S outh

Af r i c a in c re ased to R 17 bi ll i o n A s p a r t o f its rev i sed l e ade rship s t ru c tu re s, Absa e nits c o mm i t me nt to adva n c ing t ra ns fo r m ation, d ive rsi t y a n d inc l usi o n and the G roup th i s re g a rd in 2 02 2 Du r ing th e ye a r, Absa G roup i nve s te d mo re th a n R 2 6 7 mi ll i o n (a 37 % in c re as e ) in su pp o r t o f c om muniti e s, th rough edu c atio n and youth e mp l oyabi l i t y, and s t rate gic e nga ge me nt initi at ive s to e nab l e inc l us ive sus t ainab l e e c o no m ic g row th in Af r i c a. Th i s in cl uded R25 mi ll i o n towa rds c or p o rate c o m muni t y

vol un te e r ing a c t iviti e s our c om mi t m ent to being a n a c t ive fo rce fo r go o d in eve r y thin g we d o by co n tr ibu ting m e anin g fu l ly to th e s o c ie ti e s in which we o pe rate , ” said R au te n b a ch.

Out loo k

Th e out lo ok fo r the g l ob a l, re gion al and do m e sti c e nv iro n m e nt re m ains u nu su a l ly Absa exp e c ts the e c o n o my to g row by l e ss th a n 1% in 2 02 3 E le c t r i c i t y su pp ly i s exp e c ted for th e e c o n o my fo r the fo rese e ab l e futu re Absa fo rec asts 4 4% GD P-we igh te d e c o no m ic g row th for the A RO p re s e nc e c oun tr i e s in 2 02 3

B ased o n the cur rent a ssu m pti o ns, Absa exp e c ts so l id reve nu e g row th and c redit l o ss e s at th e to p e nd o f its t ar ge t ran ge, g ive n high e rsu re s. Absa expe c ts return o n e qui t y of a round 17 %

“ We a re c o ns c i ous th at th e m a c ro e nvi ro n me nt i s tough and i s exp e c ted to get toug he r but we h ave a we ll -p o s i -

UNIDO, GEA , Japan op en applic ations for its National Kaizen Initiative for MSME S

The Un i ted Nati o ns Indus tr ial D eve lop m e nt Organi z ati o n (UNIDO) a nd th e Ghana E n te r p r i s e s

A gen c y (GE A) to d ay l aunch e d a c a l l fo r a ppli c ations for its p rog ram a imed at s c aling up Gha n a’s n atio na l i n iti at ive s o n Mi c ro, S m a ll a nd Me dium En terp r i s e s ( MS M Es ) p ro motion

The c a ll for p roposal u n der the j o int i m p l em e n t ation o f UNIDO a nd the GEA i s pa r t o f a c t iviti e s of its $ 3 9 Mil l ion p roje c t “ Exp an din g the Ka iz e n Initi at ive s by E nh a n c in g Sus t ainabl e Ag r i - Bus in e ss”, fund e d by th e govern m e n t o f Ja p a n to sus t a inab ly a n d c o nti nu al ly im p rove qu ali t y a n d p rodu c t ivi t y of busin e ss e s in Ghana M r Ma r in Mi z un o, UNIDO P ro j e c t Man a ge r, n o te d a c qui r i n g p ro p e r en ter p r i s e per forman ce m ana ge -

m e nt skil l s i s c ru c ia l to th e su st a i n abili t y o f M SMEs and en te rp r i s e s ' g row th

tim e , the o n ly c o n t rol at our d i sp osa l i s our ow n i n te r n a l re s ou rce s, which we c an m aximiz e to i mp rove en te rp r i s e p er fo rma nc e

A n d in th i s re g a rd, I s t ro n g ly b el i eve th at th e Kai ze n a pp roa c h, in te rna l re s ou rc e s, i s th e p e r fe c t to ol fo r M SMEs to c o p e with th e

He em p has i s e d th at UNID O’s Sma r t a nd Sus t ai n abl e Ag r i - bus in e ss, a n i n n ovat ive e n te rp r i s e p er fo rman ce m ana gem e n t to o l which l eve ra ge s di g i t al soluti o ns fo r p ro du c t ivi t y i m p rove m en t w i ll c on t r ibu te to m o d e rni z i n g e n te rp r i se p er forma n c e ma n a ge -

m e n t i n th e MSMEs spa ce M r Te t suya I m aoka, C o o rdin ator fo r E c o n o m ic C o o p e ratio n of th e Embass y of Ja p an in Gha n a reve a le d th e phil o so p hy of Kai ze n i s to i mp rove the en terp r i s e p e r fo rc i en c y w ith th e availabl e re s ou rce s, rath e r tha n re so r ti ng to hu ge c a p i t a l i nve s t m en t Ja p an e s e tec h n ol o g y, exp e r i enc e a n d w i sdo m th rough a va r i e t y of m ethodo l o g i e s and a pp roach e s i s exa c t ly wh at i s ne ed e d i n Gha n a, e sp e c ial ly fo r mi c ro, smal l a n d m ediu m en te r p r i s e s as we go Ho n Sa mu e l Abu Ji n ap o r, Ca ret a ke r Mi n i s te r for th e Mi n i s t r y of Trad e a n d I n dus t r y and Subs t a nt ive Mi n i s te r for th e Mi n i s t r y o f

L ands and Natu ra l Re s ou rc e s said d at a f ro m th e re g i s t rar G e n e ra l s D e pa r t me nt o f Gha n a indi c ate s th at a b out 90 % o f busin e ss e s re g i ste re d in Ghana a re MSMEs Medium e n te rp r i s e s h ave b ee n m e a n s th rou g h which its I ndus tr ial Tra n s for m atio n A ge n da and o th e r d eve l o p me nt goals o f th e c oun t r y c a n b e re al i s e d and we a re g rate ful to Ja pa n for th i s su pp o rt Mrs. Ko si Yan key-Ayeh, the Chi e f th at th e p roj e c t i s go in g to sti mul ate th e Natio n al Exp ansi o n d r ive fo r MSMEs with a n em phas i s o n a n d c om plian ce to m a ke th e m Mrs. Yan key-Aye h add e d : We a re

co m m it te d, p re pa re d a n d we ll - p o s i ti o n e d to pa r t n e r w ith UN I DO to e n su re th e s m o o th c omme n ce m en t and su c c e ssful i m pl eme n t atio n of th e P ro j e c t”

MSMEs who mee t th e s e l e c ti o n re qui re me nt wou l d b e s e l e c te d for Kaiz e n and S SA B t raini n g The se l e c ted M SMEs w ill co m p o ne nt of th e p ro j e c t Th e Call fo r P ro p o sals for th i s p ro g ra m will b e o p e n u n til th e 3 0 th o f Ap r i l fo r th e e n te r p r i s e s to a pp ly Th e s e l e c ti o n i n ati o n o f th e e n te rp r i s e s to be su pp o r t e d und e r th e p ro g ram

Another predict able bank failure

By J o sep h E. St i glit z b e a l e ga l nigh t ma re ). Re p o r ted ly, SV B s d ow nfa ll was n t du e to th e ki n d o f b ad l e n di ng p ra c ti c e s th at l ed to th e 2 0 08 c r i s i s a n d th at re pre s en t a fu n dam e n t al failu re i n b a nks p er fo rmin g th e ir c en t ral ro l e in c re dit al l o c ati o n R ath e r, it was m o re p ro sai c : a ll ba n ks en ga ge i n “m atu r i t y t rans for m atio n , ” m aki ng sh o r t - te rm d e p o sits availab le for l o n g- ter m i nve s t m en t SV B h ad b ought l o n g- te rm b o nds, exp osi ng th e institutio n to r i sks wh en yie l d cu r ve s c ha n ge d d ra m ati c al ly N ew te chn o l o gy also m a ke s th e o l d $ 25 0,000 limit o n fe d e ral d e p o sit e n g a ge i n re g u l ato r y arbi t ra ge by s c at te r i ng funds over a l a r ge numb e r o f banks. It s i n sa n e to rewa rd th e m at th e expe ns e o f thos e wh o t rus te d re g ul ators to do th e ir j o b Wh at do e s it s ay ab out a c oun t r y wh e n thos e who wo rk ha rd and i n t rodu ce n ew p ro du c ts th at p eo p l e wa n t a re b rou g ht d ow n simp ly be c aus e th e ba n ki ng s ys te m fai l s the m? A sa fe a n d s ound ba n kin g s ys te m i s a si ne qu a n o n o f a m o d e rn ec o n o my, a n d ye t A m e r id en c e th e re a re no athe i sts i n Fox Hol e s, th e re a re also n o L ib e rt a r ia n s c rus ad e rs a g ainst gove r n m en t ru l e s a n d re g ul ati o ns sudd e n lym e nt bai l out of SV B, j ust as th e

re se r ved fo r memb e rs of mar g i na liz e d and vuln e rab l e g roups, li ke youn g n o nwhi te mal e s. Th e ir u nemp l oym e nt rate i s t ypi c a l ly four ti m e s the n atio n al ave ra ge, so an in c re a se f ro m 3 6% to 5% t ran sl ate s in to a n in c re as e f ro m s o m ethin g li ke 15% to 2 0 % for them. He blith e ly c a lls for such un e mpl oym ent in c re as e s (fa l se ly claimi n g th at th ey a re n e c e ssa r y to b r in g a n a pp e a l fo r a ss i s t a n c e , o r eve n a m enti o n of th e l o n g- te rm costs N ow, a s a re sult o f Powe l l’s c a l l ous – and to t a l ly unn e c e ssa r y – advoc a c y o f pain, we h ave a n ew s e t o f vi c tims, and Ame r i c a’s m o st dyn a mi c se c tor a nd re gio n w il l be put o n hold. Si l i c o n Va l l ey ’s s t a r t-up e n t rep re n e urs, of te n youn g th ought the gove rnme n t wa s d o in g its j o b, s o th ey fo cused o n inn ovati o n, n o t o n checki n g their b a nk ’s bal a nc e she e t dai ly –whi c h in a ny c as e th ey c ould n’t h ave d o n e ( Fu l l d i sc l o su re : my d au g h te r the CEO of a n e du c ati o n s t a r tu p, i s o n e o f th o se dyn a mi c e n t re p ren e urs )

Whi l e n ew techn o l o gi e s h ave n’t c h a n ged th e fundam e n t a l s o f bankin g , th ey h ave i n c re as e d the r i sk o f b a nk ru n s It i s much e asier to w ithd raw fu n ds th a n it o nc e wa s, a n d s o c ia l m e dia turb o char ge s rum o rs th at m ay spur a wave o f si mu l t a n e ous withd rawa l s ( th ou g h SVB re p o r ted ly sim p ly did n’t re spond to o rd e rs to t ran sfe r m on ey ou t , c re atin g wh at m ay

en gi nee re d th e mass ive de re g ul atio n th at l e d to th e 2 0 08 c r i s i s c a l l e d for baili ng out thos e wh o c aused i t ( L aw re nce Su mme rs, c har ge as US Tre a su r y S e c re t a r y m o re re ma rkabl e af te r h e took a s t ro ng s t an ce a g ai n st h e l p in g st ud e nts w ith their d e bt bu rd en s. )

Th e ans we r n ow i s th e sam e as it was 15 ye ars a go Th e sha re h o lders sh ould b e ar th e c o n s e qu e n c e s B uth o lds th at t rus te d re g ul ators to d o th e ir j o b, as th ey rep e ate d ly re a ssu re d th e p ub l ic th ey we re d o i ng –sh ould b e m ad e whol e , wh e th e r ab ove or b e l ow th e $ 2 5 0,0 0 0 “i nsu re d” a m ou n t

To d o othe r w i s e would c aus e l o n g- te rm dama ge to o n e of A me r ic a’s m o st vib rant e c o n o mi c s e cto rs; wh atever o ne thinks of Bi g Tec h, i n n ovati o n must c o n ti nu e , i n c l udi n g i n a re as such as g reen tec h a n d e du c atio n Mo re b ro ad ly, doi ng n o thin g would s en d a da nge rous m e ssa ge to th e publi c: Th e o n ly way to b e su re your m o n ey i s p ro te c te d i s to p ut it i n th e s ys tem ic a l ly i mp o rt a n t “ to o bi g to fai l” ba n ks. Th i s would re sult in eve n g re ate r ma rke t c o n c en t rati o n – a n d s ys te m Af ter a n a n g u i shi ng we e ken d fo r

ly did th e r ight thin g – it g u a ran tee d wh o l e , p reve ntin g a ba n k run th at c ou l d h ave d i sru p te d th e eco n o my At th e sa me ti me , th e eve nts m ad e c l e ar s ys tem S o m e wi l l s ay th at bailin g out SV B s d ep osi tors w ill l e ad to “ mo ral ha z a rd ” Th at i s n o ns e ns e. B anks’ bo n dh o ld e rs a n d sh a re hold e rs a re still at r i sk if th ey d o n’t ove rs ee m ana ge rs p ro p e rly O rdi n a r y d ep osi to rs a re not su pp os e d to b e m a n a g in g bank r i sk; th ey sh ould b e ab le to re ly o n our re gul ato r y s ys tem to e n su re th at if an i n stituti o n c allsw ithal to p ay ba c k wh at i s put i n to i t SV B rep re s e nts m o re than th e fai l u re of a sin g l e ban k It i s em bl e m atic o f d ee p failu re s in th e co ndu c t o f b o th re g ul ato r y and m on e t a r y p o li c y L i ke th e 2 0 0 8 c r i s i s, it was p re di c t ab l e and p re di c te d L e t ’s ho pe th at those wh o

h e lp e d c re ate th i s m e ss c an p l ay a co ns t ru c t ive ro l e in m ini m izi n g th e da m a ge , and th at th i s ti me , al l o f us – ban ke rs, i nve s to rs, p o li c yly l e a r n th e r i g ht l e ss o ns We nee d s tr i c te r re g ul atio n , to e n su re th at all ba n ks a re sa fe Al l bank d ep o sits sh ould b e in su re d And the co sts sh ou l d b e b o rn e by th o s ed ivid u als a n d c orp o ratio n s, a n d th o s e wh o re ly m o st o n th e ba n ki ng s ys tem , based o n d ep osits, t ra n sa c ti o ns, a n d other re l eva n t I t has b ee n m o re than 1 15 ye ars si nce the pa n i c of 19 07, whi c h l e d to th e e s t abl i sh me nt o f th e Fed e ra l Re s e r ve Sys tem N ew te c hn o l o g i e s h ave m ad e p ani c s a n d bank runs e asi e r But th e co ns e qu en c e s c an b e even m o re s eve re. It ’s ti me our f ra m ewo rk of p o li c y m akin g and re g ul ati o n re sp o n ds

Prudential Bank app oints B ernard Appiah Gyebi as new Managing Direc tor

The B o a rd o f Di re c tors o f Prud e ntia l Ba nk has a ppoin ted M r B e rn a rd Appiah Gyebi as th e n ew Man a g ing Di re c to r of th e B a n k , e ffe c t ive 28th Fe br u a r y, 2 02 3 M r

Gye bi t a ke s ove r f ro m M r John

Kp a kp o Add o, wh o se te nu re as Man a g ing Di re c to r ended o n 31st Dec e mb e r 2 02 2

C om mentin g on h i s a pp o i n t m e n t , M r Gye bi said, “I am hon ou red to l e ad the te am at Prud e nti al B ank a nd g rateful to the B o a rd fo r th e

M r Gyebi c onti nued, “ Th i s i s a d auntin g t a sk by all s t and a rds, co nside r ing the tim e s in which we turbul e nt g l o bal ec o n o mic e nv ip ro m i se to b r ing my we alth of kn owl ed ge and expe r t i s e to th e fo re in l e ading th i s g re at B a n k to the pi nn ac l e of su cc e ss i n the com in g ye ars ” the needed su ppo r t as we c o nti nue to bui l d a s t ro n ge r and m o re resilient P B L”, he ur ged a ll s t a keh ol ders M r Gye bi i s an expe r ien c ed ban ker w ith a deep und e rs t a n din g o f the banking indus t r y, h avi n g wo rke d extens ive ly in th e s e c tor h i s bankin g c a reer in 1998 at Ba rc l ays Ba nk (n ow Absa), ro se to th e l eve l o f He ad o f C orpo rate C re dit a nd a c ted as C oun t r y C redit Di re c -

to r, b e fo re joi n in g S t anbi c B a n k as

He ad o f C re dit R i sk He th enm e nt Ba n k (AD B ) as its Exec ut ive

He ad, C redit R i sk , and l ate r a ssum e d th e Chi e f R i sk & C om pl i -

He was until re c en t ly th e Man a ge r, R i sk Ma n a ge m en p ub l i c B a n k (Gha n a ) P L C h i s c a re er at m o st ab ove - m e n ti o n e d ba n ki ng ti o ns, h e h ad wo rkin g exp

Swa zi l and, th e Un i te d Ki a n d Tr inid ad & Toba go, him to b e st p ra c ti c e s f ro m H i s ba n ki n g c a ree r has p os e d him to wo rk in co re ba n ki n g , in c ludi n g banki n ti o ns, cus to mer re l atio n ship a gem en t , t re a su r y m a n a c redit r i sk , o p e rati o nal r i s p r i se r i sk and re g ul ato r y a n c e , e qui ppi ng him w ith p reh e ns ive unders t andi ba n ki n g The c o m bi n ati o exp e r i e n c e and d r ive ma sp e a rh e adin g th e n ext s g row th M r Gye bi h ol ds a p o std e g ree i n C orpo rate Ma n & Fi n a n ce f ro m th e U P a r i s Pa n th e o n- Sorbo n n e M BA f ro m I mp e r ia l L o ndo n He i s a p rodu c t

Ac ade my a n d g rad u ate d f ro m

Kwam e Nkru m ah Un ive rsi t y o f S c ien c e a n d Tec hn o l o g y i n 1996 w ith

a B S c d e g ree in Plan n in g He i s p ro g ra m s a n d se r ve d as a l e ad e rhip ch in of th i stit

GRA to comple implement ation in

An A ss i s t a nt C omm i ssi o n e r in Ch a r ge o f Va l ue Added Ta x ( VAT)

Ad m in i s t ration with th e Ghana Reve nue Autho r i t y (G RA), Philip Ac qu a h, has rema rked th at mig ration o f busin e ss e s on to th e E l e ct ro ni c Valu e d Added Tax (E -VAT) s ys tem i s s c heduled to e n d i n D ec e m b e r 2 02 4

The pi lo t ph a se, which s t a r te d se c to rs, was c omple te d in O c tober 2 022

The gove rnm e nt has b e g u n Phas e

On e o f th e implemen t atio n p roc e ss w ith 600 t a xp aye rs i n th e sa m e indus t r i e s/s e c to rs and i s s c hedu l ed to end in June 2 02 3 Phas e t wo of the E -VAT im p l e m e nt atio n i s p roje c ted to b e g in in D ec e m b e r 2 02 3 M r Ac qu a h d i scl o sed th i s du r in g a Q u a r te rly Tax Dial o gue S e minar Se r i e s o n the impli c atio n of th e E -VAT o n busin e ss e s i n Gha n a, h o s te d by th e U K- Ghana Chamber o f C om me rc e in pa r t n e r shi p w ith P wC Gh a na Wh at i s E -VAT ? Acco rding to M r Ac qu ah, “E -VAT i s just a n o ther te rm for th e E l e c t ro nic I nvo i c ing s ys te m E -VAT t ran s -

fo rms th e ma nu a l i nvoi c e i s su a nc e p ro c e ss (pa pe r- bas e d ) i n to an e l e ct ro nic fo rm at It also al l ows fo r su c h i nvo ic e s i nc ludi ng d e bit and c redit n o te s to b e exchan ge d e l e ct ro ni c a l ly “ With E - I nvoi c i n g G RA wi l l auth e nti c ate a n d va lid ate the i nvoi ce s i s su e d by t a xp aye rs i n re a l tim e ” He fu r th e r re m a rke d th at “ we a re n ot i n t ro du c i n g a ny n ew l aw [or] rate Al l we ’ re d o i ng i s we ’ re co nn e c ti ng the C o mm i ssio ne r G e n e ra l s i nvoi c ing s ys te m to t a xp aye rs’ i nvo i c in g s ys tem such as th at n ow th e i s su a nc e o f e l e c t ro n ic i nvo i c e s i s m ad e a d e f au l t” M r Ac qu ah no te d th at th e m a nu al i nvo i c in g re g im e s was f rau g ht w ith ma ny c h al l e n ge s. Th e s e i nc lud e i s su e s o f fo r ge r y, la c k of d at a for h ours o n auditi ng amo ng o th e rs He exp l ain e d th at th e im p l eme n t ati o n o f th e e l e c t ro ni c i nvoi c i n g s ys te m w i l l p ro m o te a fair a n d e qui t abl e VAT Re g im e , by e li m in atin g b o tt l en ec ks mili t ati ng a g ai n st -

c lud e im p rove d docum en t ati o n a n d rec o rd kee pi n g , s t re a m li n i n g VAT re fu n d p roc e ssin g , and re du ci n g the c om p lia n c e bu rd en , a m o ng st oth e rs Is su e s with th e El e c t ro n i c I nvoi ci n g Sys te m M r Ac qu ah admit te d th at i s su e s s ys te m we re rep o r te d, such as s ys te m d ow n tim e a n d l ack of resp o n s e Whil e a p ilot te st of th e s ys tem reals o p rovidin g tec h n i c a l re m o te a ss i s t a nc e to add re ss th e t a xp aye rs’ i s su e s in re a l ti m e Cha n ge i n th e l aw Cla r i f yi ng a n e r ro n e ous n oti o n th at th e M i n i s t r y of Fina nc e h ad s ou g ht a n d go t te n a n am en dm e nt to the VAT ACT to d i s advan t a ge busin e ss e s, Dani e l Nu e r, the He ad of Tax Po l i c y at th e Min i s t r y o f F in a n c e said “th e c han ge was n ot to c re ate a p robl e m for eve r ybo dy th e id e a was to sp re ad th e o nb o a rdi ng o f [ busi n e ss e s] o n to the s ys te m ove r a ye a r B ut th e l aw th at was p ass e d was n t th at c l e a r, so it wa s a s sum e d th at eve r ybo dy h ad a ye ar to t ransitio n

Th e B o a rd Chairp e rso n , Mrs Mu r ie l Susan Edus e i, in h e r we lc om e rem a rks said, “M r Gye bi ’s i n - d e pth kn owle d ge and expe r ie n ce w ill b e i nval u abl e as we c o nti nu e w ith our a m biti ous t ra n s fo rm ati o n a ge nda in th i s c hall e n g in g

fo rm e r Mana g in g Di re c to r M r Jo h n Add o fo r h i s rol e in th e g row th o f the B a n k to d ate wh o l e h e a r te d ly su pp o r t the n ew Mana g in g Di re c to r th rou g h th e n ext phas e o f the Ba n k ’s g row th

“ A n d s o, th e o n e ye ar was t a ke n m a ke eve r yb o dy a t a x c r i m ina l’, but th en to all ow th e C om m i ssi o ne r G e n e ral to co nti nu e h i s duti e s” He m en tio ne d th at th e Min i s t r y of Fi n an ce i s c ur re nt ly wo rki ng w ith c o m pl e ti o n, a n o th e r b atc h of bus ith e ir m ig rati o n to th e e l e c t ro nic M r Nu e r add e d th at th e E -VAT s ys tem will i m p rove reve nu e ge na n d i s l eve ra g in g tec h n ol o g y to th at th i s s ys tem w il l ma ke bus i -

Tax P ro s ec utio n Ur g i ng busi n e ss e s to co m p ly with th e t a x l aws, M r Nuer re i te rate d th at the n o n - p ay me nt o f t a xe s i s a c r i m inal o ffen c e , and th at gove rn me nt i s e n fo rci ng th e l aw th rou g h c r i m i n al p ro s ec uti o ns b e c aus e c ivil p ros ec uti o ns h ave n o t yi e ld e d th e d e si re d re su l ts Sp e a ke rs at th e s e mina r, h e ld o n th e p rem i s e s of P wC Ghana, d i s c uss e d o th e r pe r ti n e n t to pi c s su c h as publ ic i s ati o n of the m i g rati o n g uid e li n e s

Tax Dial o gu e s was mo d e rate d by Ab e ku Gyan - Q u a nsah, a Ta x Pa r t n e r with P wC Ghana and U KGCC Exec ut ive C ou n c il Mem b e r

Global Chamb er of Business L eaders

gic par tnership with

shi

Th e Globa l Chamber of B us in e ss L e aders (GC B L) has as pa r t to t rad e a nd e c o n o m ic pa r t n e rshi p s, en te red in to a s t rate gi c coo p e ration a g ree m ent with one of the l e adin g l e arning i nstitutions in Vie t na m the Inst itu te for Econ o mi c and Fin a n c ial Studi e s ( IEF S)

B o th I EFS and the Gl o ba l Cha mb e r o f B usin e ss L e aders h ave th rou g h th e ir s t rate g ic pa r t ne r-

at abase to p ro mo te t rade a n d i nve s t ment o ppo r tuniti e s b e -

t we en Vie t n a m e s e GCBL m e mbers and wo rl dwid e GC B L m e m bers

C om m e nting on th e pa r t ne rshi p, Chair m an of I EF S, P ro f Ho Qu oc Na m , expl a in e d th at e n ter p r i s e s th at a re m em b e rs o f

GC B L Vi e t na m CEO C l ub c ould pa r ti c ip ate in sum m its and t rad e c on fe re nc e s to be o r g aniz e d by GC B L to c o nne c t GC B L -

tr i e s to th e ir Vie t n a m e s e c ou n -

te rpa r ts

In addition to the nu m e rous busin e ss o pp o r tuniti e s, IEFS i s exp e c te d to fu r th e r c o o p e rate w ith GC B L to p rovide g lo ba l GC B L m e m bers w ith sho r t - ter m c o rp o rate t raining and co ac hing p ro g ra m s as we ll a s B a c h elo r and Mas ter a nd PhD p rog ra m s to re c e ive in tern ati o na lly- re c o gni z ed F re n ch, UK and

Th e Ch a irma n o f the G lo ba l Ch a mber o f B usin e ss L e ade rs (GCBL), Dejan S t a n ce r, h a s c a lle d fo r wom en a round th e wo rl d to be g ive n to p po sts i n multi l ate ra l instit uti o ns li ke the Un i ted Nati o ns ( UN), the I n tern atio n al Ato m i c Ener g y A gen c y and th e Wo rl d Ba n k M r S t an cer m ade the c al l in a speec h du r in g a vi r t u al con fe re n c e or g anized by the G lo b a l Ch a mber o f Busin e ss L e aders o n Ma rch 8, 2 02 3, to cel eb rate the In tern atio n al Wo m e n' s D ay (IWD)

Th e 2 02 3 editi o n o f I WD was h el d u n der the g l o bal the m e : DigitALL : Inn ovati o n and te c h nol o g y fo r gender e qu a li t y' an d was ce l eb rated wo rl dw ide to he l p ra i se awa ren e ss a b out the need to c re ate e qu a l o pp o r tuniti e s for b o th wom en and me n in th e digi t a l o r te c hno l o gi c a l wo rl d S p e a kin g under the spe c ial th e m e fo r the vi r t u a l c o n fe renc e : " Unl e a shin g The Power Of Inn ovatio n And Te c h n o l ogy For G ender E qu ali t y," M r S t a n c e r bem o aned th at " wo m en h ave he l d j ust 1 2 pe rc en t o f the to p posts in th e 33 l ar ge st multil ate ral i nstitutio n s sin c e 19 45, a n d mo re th an a thi rd o f those

CBL Chairman

bodi e s, in c luding a ll four m aj o r d evel o pment b a nks, h ave n ever been led by a wom an "

He exp l ained th at sin c e 19 45, the 33 mu l til ate ra l instit uti o ns h ave h ad 3 82 l e aders, o f wh om o n ly 47 we re wom en, addin g th at "and d espi te p ro g re ss in re c ent ye ars, o n ly one thi rd o f inst ituti o ns a re cur rent ly h e ad e d by wo men "

th o se bodi e s h ave o n ly h ad o ne fe m a l e p re sident in their h i s to r y, a n d th at in cl ud e s the c ur re nt h e ad o f the Wo rl d Trade Or g ani z ati o n (W H O ) , N gozi O kon jo Iwe a l a

A mo n g the 13 institutions th at h ave n ever h ad a wom an at their h e ad, M r S t an c er m e n tioned, a re th e Wo rl d B an k , the U N, the I nter n ati o nal Atom ic Ener g y A ge n c y ( IAE A) and the Food and A g r icultu re Org a ni z ati o n ( FAO)

G ivin g re a sons why wom e n must be g iven o pp o r tuniti e s to h e ad multi l ate ra l instit uti o ns, M r S t a n cer m ade a d em o g raphi c ar g umen t , s ayin g " Wom en m a ke up 5 0 pe rc ent o f the wo rld's popu l ation, s o

it ' s de m o g raphi c j usti c e to b e g in with Wo m en b r in g a c o m bin ation of l e ader shi p w i sdom a nd emp at hy Som eti m e s wo m en h ave a n eve n g re ater unders t a ndin g o f wh at ' s going o n in th e wo rl d, a nd ab out geop ol iti c s.

* Wom e n e m p owerment at GC B L*

Me a nwhi l e, he s a id at the G lo b al Cha m b e r o f B usin e ss L e aders, the sit u ati o n i s th e sha re o f wom e n o cc u pyin g l e ader ship positi o ns i s a l m ost 46 %

"I n th e wo rking bodi e s o f GC B L , a s we c a ll th e c o mmi tte e s, of which we h ave e s t a bl i sh e d si x , the p ropo r tion of wo m en i s as mu c h a s 5 0 %," he s a id

Acc o rding to him, " Appoin tme n ts to the GC B L a re n ever m ade o n the bas i s of rac e, c o l o r, po l iti c al o r religi ous be l ie f, and e spe c ia l ly not o n th e b a s i s of s ex At GC B L , we a pp oint exc lus ive ly o n the bas i s of kn owl ed ge and exp er i e n c e. With us, eve r yo ne h a s the sa m e o ppo r tuniti e s, even to o cc u py the high e st positions in the orga n i z ati o n.

"

Ab out GC B L

The G l oba l Chamb e r o f Busin e ss L e aders i s a c oa l iti o n of gover nme n t al l e aders, CEOs a nd exe cut ive s, en t rep re n eurs, i nve s tors a nd busin e ss and indus t r y l e aders wh o sha re a c o mm on v i si o n : th e sus t ain a bl e we ll -b e ing a nd g row th o f busin e ss in a d i sru pt ive a nd eve r- evo lving g lo ba l e c on o my G lo b al Ch a mb e r of Busin e ss L e aders p r i o r iti z e s a c t iviti e s th at al i g n w ith the UN - de cl a red De c ade of Ac ti o n, p ro m oting th e i m p o rt a nc e of th e in c lusio n of the Sus t a in a b le D eve lo pm e nt G o al s in th e busin e ss m ode l s of th e futu re , a ll ow ing our p a r t -

n e rs, m em bers, a n d p a r ti c ipants to p re pa re their bus in e ss e s to b e vang u a rds o f the futu re

Th e GC B L fo s te rs a vib rant and in te rc o nne c ted bus in e ss c om muni t y, e nc ou ra ging re si l ien c y, g row th a n d m a rke t expansi o n in a p rog re ss ive busin e ss e nvi ro nm ent wh e re c o ll ab o rati o n spurs g row th; e du c ation e nhanc e s th e a bi l i t y and p rom o te s o pp o r tuni t y; and ad -

It's time to give women top p osts in multilateral institutions like UN, World Bank, says G

FX Insights

As Nigerians prepare to go to the polls on Saturday to elect a new president, a cash shortage caused by a policy to exchange old Naira notes for newly designed bills continues to cripple the economy, creating a rift in the ruling All Progressives Congress (APC) party. The note swap plan championed by incumbent President Muhammadu Buhari has led to violent protests across the country and resulted in a temporary suspension of banking e Supreme Court to overturn the policy, citing severe hardship faced by people and businesses dependent on cash for survival. Buhari’s apparent intention behind the policy is to curb vote buying by politicians, turning a deaf ear to APC governors who have made repeated calls to postpone the implementation of the policy. Amid fears of the current tensions spilling over to political violence, Buhari said he’s mobilising military and security agents to monitor polling stations for evidence of vote rigging. The severe cash shortage has held the currency steady in spite of the economic turmoil, with the Naira strengthening marginally against the dollar to 755 from 756 at last week’s close. In this context, resolving the cash shortage has become more rate likely to hold around current levels until Naira supplies recover. 32%

Rand sinks to lowest in more than 3 months

The Rand depreciated against the dollar, trading at 18.25 from 18.05 at last Friday’s close—its weakest level since early November. The currency is being dragged lower by broad more than half of the power company’s debt over the next three years to help strengthen the balance sheet and avoid the risk of default. We expect the Rand to continue trading with an 18 handle in the near term, mainly due to the

Foreign Exchange

Down 18%

The Cedi weakened against the dollar, trading at 12.76 from 12.38 at last week’s close as Fitch Ratings cut Ghana’s foreign currency credit rating to ‘restricted default’ after the country missed a $40.6m coupon payment on one of its outstanding Eurobonds. The downgrade aligns with Fitch’s local currency rating, which was cut earlier this month. The foreign debt default was largely expected after Ghana said it would suspend payments on certain bonds as part of its restructuring plan to unlock $3bn in emergency funding from the IMF. The country faces pushback from bondholders over preferential treatment for bilateral lenders, who are being slight improvement in January—we expect the Cedi to depreciate further in the near term.

Egypt issues debut $1.5bn sukuk

The Pound depreciated against the dollar, trading at 30.60 from bond, or sukuk, raising $1.5bn. The three-year deal priced to yield 11%, having attracted investor demand of more than $5bn. expect the Pound depreciate further in the week ahead mainly due to dollar strength.

Foreign

Down Down 99%

94%

Shilling strengthens as Uganda resists rate rise

The Shilling strengthened against the dollar, trading at 3674 from 3684 at last week’s close. Uganda’s central bank kept its benchmark interest rate on hold at 10% for a second consecutive monetary policy meeting. The bank last raised by 100 basis points in October, with rates ending the year 350 basis points higher than they were at the start of 2022. Policymakers said the decision to hold rates was aimed at containing domestic demand pressure and supporting edging up to 10.4% last month. In the near term, we expect the Shilling to weaken amid continued food and energy price

Foreign Exchange Down

4.8%

Foreign

Down

Kenyan Shilling hits new low as FX reserves dwindle

The Shilling weakened to a fresh low against the dollar, trading at 126.15 from 125.90 at last week’s close amid increased FX demand from the oil and energy sector. The currency has now lost more than 2% of its value this year. Kenya’s foreign currency reserves also dropped to a new record low $6.88bn from $6.94bn secured a $27m funding deal with the European Union to boost exports to the 27-nation bloc and strengthen the overall business environment. The government is also anticipating $3.4bn in tourism-related earnings this year as it expects tourist numbers to exceed pre-pandemic levels. In the immediate term, however, we expect the Shilling to remain under pressure as importers clamour for dollars to meet month-end obligations.

11.7%

Saudi st ate - owned oil giant Aramco

S audi oil g iant A ramc o has a n -

$161 1b n (£134bn) fo r 2 02 2 , h elpe d by soa r ing energy p r ic e s a n d bi g ge r volum e s

It re p re s e nts a 4 6 5% r i se fo r th e s t ate - ow ned c ompa ny, co mp a red w ith last ye a r

e ne r g y p r i c e s spi ked fo l l owin g Russi a’s fu l l - s c a le i nvasion o f Uk ra i n e in Fe br u a r y 2 02 2

A m e r i c a’s Ex xo n Mobil m ad e $ 55 7bn, and B r i t a i n s Shel l rep o r te d $3 9 9bn

A ramco a lso decla re d a d iv id en d o f $ 1 9.5 billio n fo r the O cto b e r to De c ember qu a r ter of qu a r ter o f th i s ye a r

Most o f th at d ivide n d am ount wi ll go to the S audi A rabi a n gover nme n t , which owns n e a rly 95% o f the sha re s in the co m p any B ren t c rude o il, the benchma rk oi l p r ic e , n ow t rad e s at a roundaf te r Russi a’s i nvasi o n, and Ju n e A ram c o rode the wave of hi g h e ne r g y p r ic e s in 2 02 2 , ” said Ro b e r t Mo gie l nicki of the A rab

Gu l f S t ate s I n stitu te in Wa shin gc u l t for A ra mc o not to per form s t ro n g ly in 2 02 2 ” -

su l ts we re “underpinned by s t ro n ge r c rude oi l p r i c e s, hi g h e r vo lum e s so l d a nd i mp ro du c ts”

A ra mc o’s p re sid e nt and CEO

A m in Nasser said: “G iven th at we anti c ip ate oil and g a s wi l l re m ain e ssentia l for th e fo re se eab l e futu re, the r i sks o f unde ri nve s t m e n t in our indus t r y a re re a l – in cl uding c on t r ibuting to hi g h e r ener g y p r i c e s ”

To add re ss those cha ll en ge s, he said, the c o mpa ny would n o t o n ly foc us on expandin g o i l , gas and che m i c a l s p rodu c tion – but would a l so i nve st in n ew l owe r-c arb o n te c hn ol o gi e s

A ra mc o – the wo rl d’s se co nd -m ost va l u a b l e c o mp a ny o n ly behi n d Ame r i c a s App le –i s a m ajo r emit ter of g re e nh ouse g as em i ssio n s th at c o ntr ibu te to c l im ate chan ge Re sp o ndin g to A ra m c o’s a nn oun c e m en t , Amn e s t y In te rn a -

sho c king for a c o mp a ny to $ 161bn in a sing l e ye a r th rough th e sa l e o f fo ssi l fue l – the sin gl e l ar ge st d r iver o f the cl im ate c r i s i s”

She added : I t i s a ll the m o re sho c king be c ause th i s surp l us wa s a m assed du r in g a g lo ba l c ost - o f- l iving c r i s i s and aid e d by

the in c re ase in en e rgy p r i c e s re su l ting f rom Russi a s war o f a g g re ssi o n a gainst Uk ra in e ” S audi A ra bia i s th e l ar ge st p ro du c er in the oi l c a r te l

Op e c (Organi z ation o f the Pet ro le u m Expo r ting C ou ntr i e s)

B ut th e Gu l f kin gdo m has be e n c o nd e mn e d fo r a ran ge

o f huma n r ights abus e s : its i nvo lve m ent i n the

Ye m e n, th e mu rd e r in

2 0 1 8 of j ourna l i st Ja m a l Kh a sh o g g i, for j ai l ing d i ssidents, a nd for wid esp re ad us e o f c api t a l pun i sh m en t

e xpens iv e It was seek ing to rais e GH¢2.78 billio n to re nance mat urin g b i lls totali ng GH¢2.55

tth h s s h hiit t ¢ ¢ 4 4 4 1 1 6 6 b b n n B B o o n n d d m m a arrk k e ett d d e e c clli i n n e e s s b b y y a a b b o o u utt

% iin n m m a arrk k e ett ttu urrn n o o ve err iin n tth h e m m o o n ntth h o off F F eb brr u u a arry y

T T--b biil lll s s:: g g o o v v e errn n m m e e n ntt p p u u s s h h e e s s iin n v v e e s stto orrs s tto o b biid d b b e ello o w w

0 0 % %

AfDB i ssues inaugural Gre en B ond in the Nor we gian krone market

Th e Af r i c an D evel o pme n t

Ban k , rated

Aaa / AAA / AAA / AA A

( M o o d y ’s/ S& P/Fi t c h/ J apa n C re dit R atin g , al l s t ab l e), h a s i s sued a 1 bi l li o n No rwe g ia n k ro ne (NOK) 5 -ye ar G re e n B o nd due Ma rc h

2 028 Th e b on d wa s i s sued o n T hursd ay 2 Ma rc h and b on d i s su anc e in the N o rfo ll ows suc c e ssfu l g reen b on d i s su an c e s in US d o lla rs ( USD), Swed i sh k ro na ( SEK ) , Aus t ra l ian do l lar (AUD ) , since the Ba n k e st a b l i sh e d its G reen B o nd f ram ewo rk in 2 01 3, and th ree NOK so c ia l b o nds i s su e d i n 2 0 19 a n d 2 02 1 Th e fu n ds ra i sed th rough th i s t ra nsa c ti o n wi l l be

g ree n p ro je c ts in a c c o rdan c e with th e Af r i c a n D eve l opm e nt

B ank ’s G reen B ond P ro g ra m fo r the purp o se of su pp o r tin g Af r i c an c oun tr i e s’ t ra nsition to g ree n g row th The bond p roc eeds wil l c on tr ibu te to bui l din g re si l i e nc e a gainst th e n e g at ive im p a c ts o f clim ate c han ge, a c hi evin g sus t ain a b l e inf ras t ru c tu re, d eve l oping e c os ysand sus t ain a bl e use o f n atu ral re s ou rc e s su c h as wate r, a se c to r p a r ti c u l a rly vu l ne ra b l e to c lim ate c han ge a c ross the c o n tin e n t Th i s t ra nsa c ti o n emph a si z e s the B a n k ’s c onti nued fo c us o n de l ive r in g on its Ten -Ye ar S t rate g y whos e ove ra rc hing o b j e c t ive s a re inc l us ive g row th and t ransition to g re en g row th I t a lso il l us t rate s the c o mm it to its ro l e as o ne of the

l ban ken i s d el igh ted to su ppo r t Af r i c an D eve lin th e No r we gian m a rke t I t re pre s e nts a g re at al ign m ent o f b o th our ow n and AfD B’s o bj e c t ive of t ransition to a l ow- c a rb o n, c li -

h o p e the succ e ss o f th i s t ran sa c ti o n w i ll en c ou ra ge o ther d eto ra i se m o re fundin g in the No r we gian G re en B o nd m a rke t in the futu re ” Keith Werne r, D iv i sion Ma na ge r, C a pi t a l Ma rke ts and Fina nc i al Ope rati o ns, Af r i c a n D eve lopm e nt Ba nk s a id : A s a pi onee r ing pa r ti c ipant in the E SG m a rke t , th e Af r i c a n D evel o pment B ank i s p l e a s e d to l aunch its i n augu ra l G re e n B o nd in th e No r we gian m a rke t in c oll ab oration w ith SE B in o rd e r to su pp o r t th e B ank ’s c o m mi tment towa rds add re ssing the c han ge in Af r i c a whi l e exten din g its i nve s to r re ach in th e G re en B o nd, i s sued under the B ank s G re e n B o nd f ra m ewo rk , highlights th e B ank ’s

c o ns i s tent i nve s t m ents in se cto rs su c h as ren ewab l e en e rg y,p o rt ation, bi o sph e re c o nse r vation, but in pa r ticul a r, as we a pp ro ach th e UN ’s Water C o n fe re nc e l ater th i s mo nth, th e i nc re a sing ly i m po rt ant se c to r of sus t a in a b l e water & was tewate r m ana ge m e n t ” We a re p roud to ass i st AfD B’s c o nti nued expansio n in to n ew m a rke t a nd su pp o r t the d e l ive r y o f th e ir g re en g row th s t rate gy in Af r i c a L ater th i s m o n th at the UN Wate r co n fe re nc e in N ew Yo rk we w i ll be re m ind e d o f h ow wate r p l ays such a c r iti c a l ro l e in de l ive r in g o n th e sus t ainab l e d eve lo p m ent a ge nda, s o it ’s a g re at o pp o r tuni t y to high l ight AfD B s rep re s e nts cl ose to a thi rd o f their g re en pipe l ine , said B en Powell , He ad of Sus t ainab l e Debt C a pi t a l Ma rke ts, SE B.

World Bank president nomine e, Ajay Banga, pledges to par tner with AfDB for transformative results

Un i te d S t ate s’ n ominee for Wo rl d B a nk G roup P re siden t , Aj ay B a n ga b e g an h i s g lo ba l s to p in Abidjan, C ô te d Ivoi re whe re h e m et Af r i c an D eve l o pm e n t B a nk G roup P re sident Dr Aki nw umi Ad e sina, s e nior m a na gement and the B o a rd of Di re c to rs B a nga sp o ke a b out the n eed fo r the Wo rld B ank G roup to d eve lop a s t ro ng pa r t ner ship w ith the Af r i c a n D eve l o p m ent B a n k G roup th at would he l p de l ive r t ra ns fo rm at ive re su l ts Th e c a ndid ate fo r the Wo rld B a n k to p j o b highligh ted th ree p a r ts o f th e wo rld, which hec er n to him. He s a id th e se we re i n e qu ali t y, te nsi o n b et ween humani t y and n atu re, a nd th e te nden c y to a pp ly sho r t - ter m soluti o ns to l o n g- te r m p robl e ms whi c h o n ly del ivers po o r re sults

B a nga said the chal l en ge s fa c i ng the wo rl d got c o mp l i c ate d b e c ause of the C ovid -19 p a n d em ic, e nvi ronmen t al d e grad atio n , and th e impa c t of th e Russia-Uk raine Wa r

The fo r m er Ma s te rc a rd CEO e m phasized th e ro l e of te c hn ol o g y in he l ping to t ac k l e c h a l l e n ge s f a c in g the wo rl d. He a l s o t a l ked a b out the ro le of the p r ivate se c to r in m o bili zin g mu c h- n eeded c a pi t a l ren om i c d evel o p m en t He said th i s a pp l ied both to p r ivate se c to r c api t al, as we ll as to p r ivate se c to r in ge nui t y a nd inn ovatio n , whi c h a re needed to t a c k l e the m a ny cha ll en ge s fa c in g th e wo rl d Ad e sina s a id Bang a’s c a ll for a re gene rated p a r t ner ship re s on ated with him. He s t re ssed the ne e d fo r a n ew way of wo rkin g be t we e n th e Wo rl d B ank and the Af r i c a n D eve lo pm ent B a n k “It i s m o re than we wo rk to o ptimi z e re s ou rc e s by e n g a gin g governments, the p r ivate se c to r and other s t a keho l d e rs to de l iver m e a nin g ful c h a n ge

Ad e sina said cl i m ate c ha n ge re m ained the m o st se r i ous exi s te n tia l th re at to hu m ani t y

“C l i m ate chan ge i s d e c im ating l ive s, d i spl a c ing p eop l e, c re atin g refu ge e s a nd deepening

p ove r t y,” he s t re ssed

He wa r n ed: “It i s wh at I c a ll th e tr i a ng l e of d i s a s te r You h ave in c re asing p ove r t y, r i sing youth u n emp l oym e nt a nd e nvi ron m en t a l d e g rad ati o n, and th i s i s b reeding g round for te rro r i sm The Af r i c an D eve l opm e nt B a n k h e ad c al l e d for a g l oba l se c u r i t y c oun c i l on e nvi ro nme n t and biod iversi t y, i s su e s whi c h h e s a id we re not getting th e at te n ti o n th ey d e se r ved, c o m pa red to oth e r g l o ba l c ha ll en ge s such a s wa r Ad e sina c a ll ed fo r a n ew way of m e a su r ing th e we a lth of n ati o ns ins te ad of basin g it o n g ross d o m e sti c p ro du c t “ Th i s do e s not c onsider impo rt a nt fa c tors l i ke a c oun t r y s c o n tr ibution to c arbon em i ssi o n a nd im p a c t on biod iversi t y ” G lo ba l ly, the re i s need for g re ater re sponsibi l i t y to t ac k l e th e imp a c t o f c l im ate c h a n ge , e nvi ro n men t al d e g rad ation, a nd p ro te c t bi o d iversi t y,” the Af r i c a n D eve l opm e nt B a n k h e ad s a id Ad e sina unders co red the need fo r i n c re a sed e c on o mi c o ppo rtuniti e s, pa r ticu l a rly in ru ra l

a re a s, wh e re inf ra s t ru c tu re i nve s t m e nt i s c ru c ia l. He said thi r t y- four h e ads of s t ate atto c oun t r y fo o d a n d ag r i c u l tu re de l ive r y c om p a c ts He s a id th at in tend e d su ppo r t to a g r i c u l tu re a nd fo od se c u r i t y h ad be e n p a r t n e rs for th e n ext th re e -ye ar pe r iod Ad e sina c a l le d fo r a si m i l ar a pp ro a ch to so lvin g th e p ro b l e m of la ck of e ner g y i n Af r i c a, pe o p le l a c k a cc e ss to en e rg y

He exp l a in e d th at th i s c ou l d be re so lved th rough initi at ive s l i ke th e Af r i c a n D eve lo pm e ntti at ive , whi c h a i m s to d el iver g re en el e c tr i c i t y to mo re than e l eve n c oun t r i e s by using s o l a r c ap a c i t yid e nt Jo e Biden ann oun c ed Aj ay B ang a a s the Uni te d S t ate s’ n om in e e fo r P re sid e nt o f the Wo rl d Ba nk G rou p Th e institutio n’s c ur re nt p re siden t , D avid Ma lp a ss, re ce n t ly a nn oun c ed h i s in te n ti o n to s te p d own by th e e nd of Ju n e 2 02 3