Investment Times Newspaper 2023 Edition | Issue 9

Incentives to investors should be

By Eugene Davis

“smarter,

35 LPGMCs submits application for gas station

The CEO of National Petroleum Authority (NPA), Dr. Mustapha Abdul-Hamid, has announced that 35 Liqui ed Petroleum Gas Marketing Companies (LPGMCs) have submitted application to put up a gas station in their respective locality.

“After cabinet gave us approval to allow some categories of LPGMCs to build their lling stations, we made that announcement to the industry, and so far about 35 of them have submitted application.

Out of the thirty- ve, twenty-nine did not have proper documentation, so we have sent it back to them to make their documentation up to date and submit. About six have proper documentation and we have sent it to our regional o ces to physically inspect their site, and we will issue the license for them to operate,” he told the Public Accounts Commission (PAC) when a question on the construction of new lling stations

Trade experts, business executives, and advocates of the African Continental Free Trade Area (AfCFTA) from across the continent have expressed concerns about the slow progress on the rati cation of the Protocol on the movement of people.

The Agreement has, thus far, been signed by fty-four of the fty- ve African Union (AU)

The Ghana cedi has depreciated by a substantial 19.1 per cent to the US dollar this January [2023].

According to the Summary of Economic and Financial Data from the Bank of Ghana, the cedi sold at ¢10.60 to one US dollar in January 2023 on the interbank

Member States. Forty-four countries have deposited their instrument of rati cation, but only four have rati ed the Protocol on the movement of people.

Intra-African trade, currently less than 15 percent of the continent’s total trade, is largely sti ed by stringent entry rules making it strenuous for citizens to move from one country to another.

market, compared with ¢8.57 in December, 2022. The central bank, however, pegged the cedi depreciation to the American greenback in 2022 to 30 per cent.

For the pound and the euro, the local currency lost 21.4 per cent

AfDB approves $50 m loan for ECOWAS Bank for Investment and Development

maritime resources.

By Eugene Davies

Africa (MOWCA) is essential and efforts should be championed for its e ective and e cient

In a document released at the end of a three-day Africa Prosperity Dialogue held in Ghana from 26 to 28 January on the theme “AfCFTA: From Ambition to Action - Delivering Prosperity Through Continental Trade,” African countries are called upon to “accelerate the rati cation of the Protocol.”

The Protocol - initially contained in the 1991 Abuja Treaty - aims to

facilitate and increase the movement of Africans within Africa, while enhancing their rights to entry, residence, and establishment in AU member states.

With more people able to move freely, countries will easily tap into a wider labor market to bridge skills gaps while trading across borders.

The Africa Prosperity Dialogue fo-

cused on issues relating to AfCFTA rati cation, market access, dispute resolution, negotiations on Phase II of the Agreement, industrialization, private sector, innovation and technology, nancing and resource mobilization, partnerships for impact, and free movement of persons.

The outcome document also contains a commitment to “Ratify the AU Protocol on the Free Movement of people and select a champion to

In ation’s return from the dead has brought the era of easy monetary policy to an end. The US Federal Reserve, the European Central Bank, and others are planning to shrink their balance sheets, but this is a process that will most likely unfold very slowly. In the meantime, the heavy lifting will be done the old-fashioned way: hiking short-term interest rates to rein in aggregate demand. But policymakers should be careful not to get ahead of themselves. The latest monetary-tightening cycle has been highly synchronized. While the Fed, the ECB, and the Bank of England did not all

time, they have all implemented 200-basis-point hikes since September. And they have all used similarly tough language to a rm their commitment to reining in price growth. This uniformity is puzzling, given

namics driving in ation across economies. Consider the impact of skyrocketing global energy prices. For net energy importers like Europe, this trend implies a negative terms-of-trade shock –import-price growth outpaces ex-

Momentum builds for free movement under AfCFTA

ensure early entry into force."

In fact, President Nana Addo Dankwa Akufo-Addo of Ghana was called upon to champion the Protocol on the free movement of persons. The president said he would “readily accept in all humility.” He cautioned, however, that “I need the approval of the AU before I can become the champion of anything”

lective promise to all of us…It is thus incumbent on all of us to support them to be true to their words, but also to hold them to account when they fall short,” said Melaka Desta, Coordinator of the African Trade Policy Centre at the ECA.

“Let Africans roam freely. Free movement of people is a must if Africa wants to enjoy the full bene ts of the AfCFTA,” said Joseph Atta-Mensah, Senior Regional Adviser on Trade, ECA.

Organizers agreed to “meet annually, under the Africa Prosperity Dialogue,” and take stock of the progress of Africa’s prosperity agenda. It was also agreed that development part ners including ECA and UNDP will continue to provide coordi nated support to governments and businesses to ensure the full implementation of the AfCFTA.

Independent oil and gas, explo ration and production group, Tullow, has projected to invest $300 million in its operations in

The money will be spent mainly on its Jubilee operations and will include over $100 million in

The company’s planned invest ment in Ghana is part of a $400 million amount the company in tends to spend this year on its

An amount of $40 million will be spent in Gabon; $20 million in Côte d’Ivoire; $10 million in Kenya and $30 million on explo ration and appraisal activities.

The company’s annual expendi ture is an increase of $50 million

compared to 2022 as a consequence of deferrals from that year, increased equity in Ghana for the full year, and ongoing infrastructure investment in Jubilee South East, which will account for 40 per cent of Ghana capital spend in 2023.

The company said its decommissioning expenditure is expected to be $90 million in the United Kingdom (UK) and Mauritania, including deferrals from 2022, with less than $30 million of decommissioning liabilities in the UK and Mauritania remaining at the end of 2023.

“Additionally, starting in 2023, $30 million is expected to be paid annually into escrow for future decommissioning of currently producing assets in Ghana and parts of the non-operated portfolio,” it

be in excess of $300 million in in the year under review (at $80/bbl) as historical capital allowances in Ghana will have been fully utilised in the rst quarter of 2023.

“Tullow said free cash ow for the full year 2023, post hedging, is expected to be $200 million at an average oil price of $100/bbl ($100 million at $80/bbl); this assumes revenue receipts for 15 cargos lifted from the Jubilee eld and four cargos lifted from the TEN elds in Ghana during the year.

Capital investment in 2023, particularly in Ghana, is expected to support production growth through to 2025 and free cash ow generation of $700-800 million at 80/bbl for the two years 2024 and 2025 based on 2P reserves only, which will further reduce net debt and strengthen

portfolio provides oil price downside protection at $55/bbl for 64 per cent of forecast sales volumes to May 2023 and 40 per cent of forecast sales volumes from June 2023 through to May 2024.

The company added that with the majority of hedges executed as part of the 2021 debt re nancing rolling o , Tullow will have increased exposure to higher oil prices from May 2023 onwards.

“Tullow plans to build out its commodity hedge portfolio for the second half of 2023 and into 2024, looking to maintain material upside exposure whilst securing protection against a severe oil price downturn,” it added.

35 LPGMCs submits application for gas

that you no longer exist or your company has gone bankrupt, so the only option is to revoke, report to EOCO to pursue you for the monies that you keeping and which is what we did” he said.

Government last year lifted the ban it imposed in 2017 on the construction of Lique ed Petroleum Gas (LPG) stations.

The decision was arrived at Cabinet’s 35th sitting held on, August 3, 2022.

came up at the sitting on Monday.

In spite of the lifting of the ban to construct gas stations, the directive does not cover all categories and the MP for Bole Bamboi, Yusif Sulemana sought to nd out if farthest areas like his constituency, special arrangement could be made to construct lling stations.

The Minister of Energy, Dr. Matthew Opoku Prempeh, is response to the appeal indicated that getting LPG or siting of LPG station is suppose to the done in a safe and secured manner, and it is for the reason government introduced the Cylinder Re-circu-

lation Model of Lique ed Petroleum Gas to minimize the occurrence of gas explosions at these unapproved gas stations.

“ You might talk this way now, because there is a need which I agree totally with but let an accident happen and then NPA would be asked which were the safety and security issues to do the siting of that station -so we have moved on, like in the ECOWAS sub-region, everybody does cylinder recirculation which is a more secure way of distributing LPG…but we have moved on, even if NPA will grant approval in your neighbourhood [it has to suit the cylinder recirculation model]” the minister explained.

The NPA early this month announced the revocation of licenses of 30 oil marketing companies, or non-compliance with the rules and regulations of the Authority on the acquisition and maintenance of their licenses.

According Dr. Abdul-Hamid, for more than two years most of the deactivated companies did not come to renew their licenses and the only option left was to report to EOCO for retrieval of the monies.

“We take the renewal of license as an intention to do business, so if for two years, you have not come to NPA to renew your license and you are not operational, we take it

the next two weeks ending February 14, 2023”.

“The rise in domestic fuel prices would be occasioned in spite of government’s re ceipt of approximately 41,000 metric tonne of Gasoil under its “Gold for Oil” programme, and that consumers must be prepared to buy for instance, a litre of Gasoline [petrol] for roughly ¢15 in the coming days”, it said in statement.

It was on the back of ongoing strike by Tanker Drivers and LPG Marketing Companies over the issue.

In a statement, the NPA said, “Cabinet has granted a special dispensation to allow the completion of the construction of stranded LPG stations across the country”.

The Authority has asked all Oil Marketing Companies and LPG companies to begin processes for approval.

Following the Atomic Gas Explosion that killed at least 7 people and injured 132 in Accra in 2017, government

after a crucial cabinet meeting, announced a number of directives, about ten of them, geared towards sanitizing the fuel distribution and retail sector, to improve safety and save more lives.

One of the decisions, as approved by the President, was an immediate cessation of the construction of new fuel stations, to allow the NPA and its allied agencies, to carry out a proper audit of all the facilities.

The President also ordered the closure of all high-risk fuel stations within 30-days.

The President also ordered the implementation of the Cylinder Re-circulation Model of Liqueed Petroleum Gas distribution within a year.

The module, proposed by the NPA, will ensure that LPG lling points are sited out of densely populated areas and commercial centres.

The NPA regulates the petroleum downstream industry in Ghana. As a Regulator, the Authority ensures that the industry remains e cient, pro table, fair, and at the same time, ensuring that consumers receive value for money.

Andrew Takyi-Appiah, Co-Founder and Managing Director of Zeepay

Fuel to go up 7%-13% from February —

Cedi depreciated by 19.1% to dollar in January 2023 – BoG

and 20.7 per cent in value respectively in January 2023.

The local currency came under severe pressure to the American currency in January 2023 after recording some sustained stability in the greater part of December 2022. This was after Ghana reached a

Sta -Level Agreement with the International Monetary Fund. By this depreciation the cedi follows its trend to become the second weakest currency among 15 top currencies in Sub-Saharan Africa in January 2023. It is still currently in that position.

It sold at ¢13.10 to one US dollar on the forex or retail market, but has since improved very slightly in value to ¢12.90.

The cedi recorded a sustained stability to the dollar and the major foreign currencies this week.

second of which was brutal – he had managed to bring in ation down to 3.8%. Though expectations stabilized, in ation remained elevated, although stable, for years, averaging almost 4% in 1983-90.

growth, and the UK economy has shrunk by 0.8%. This year, the OECD expects US and eurozone GDP to grow by 0.5%, and the UK economy to contract by 0.4%.

port-price growth. This produces immediate in ationary e ects, but, over time, it erodes real in comes and suppresses aggregate demand. France’s Treasury estimates that real income losses, compared to pre-pandemic levels, amounted to 3% of GDP at the end of 2022, owing to the terms-of-trade e ect.

But the United States – a net energy exporter – is not facing any such shock, so the factors driving US in ation must be di erent. In their e orts to ensure price stability, central banks should account

operation.

“I must reiterate that; no single Member State can make signicant strides on their own.

Areas such as maritime security, maritime safety and navigation, port and infrastructure development, environmental protection, sheries amongst others can only become e ective when approached with a coordinated and integrated e ort,” the Minister said this at the 17 Extraordinary Session of the General Assembly of MOWCA in Accra.

Mr. Asiamah who is also the chairman of MOWCA also encouraged members to focus on actions that will ensure its people bene t while tackling some deep-seated issues, including rules of procedure, nancial

central banks’ e orts – in particular, their hawkish rhetoric – are working. In ation expectations have indeed stabilized in the eurozone, the US, and the United Kingdom. But there is reason to fear that policymakers are going too far too fast – especially in Europe, where the energy crisis is now taking a large toll on real disposable incomes.

Fast seems to be the point. Based on the ECB’s own forecasts, one

regulations and conditions of sta . Further, Mr. Asiamah stated that member states dependence on imports of nished goods and exports of raw materials can only be facilitated by shipping which is a major activity in maritime industry.

It is estimated that about 80percent of international trade is done via maritime space, with the minister adding that shipping remains the most-e ective way of transporting any large/bulk amount of goods over a great distance.

The Minister of Foreign Affairs, Shirley Ayorkor Botchwey, who was the guest of honour indicated that the organization

sumer in ation will fall to 1.4% –well below the 2% target – by the fourth quarter of 2024. In the US, the Federal Open Market Committee’s median projection for personal consumption expenditure in ation is 2.5% for 2024. These are very sharp decreases, by historical standards. When Paul Volcker became Fed Chair in the summer of 1979, the annual in ation rate exceeded 11%. At the end of 1982 – after two recessions, the

Why are today’s central bankers in such a rush? Given stable in ation expectations, one might infer that policymakers fear the emergence of a new round of in ationary pressures, as pro ts and wages, supported by a relatively strong labor market, catch up to prices. But there is little evidence of wage-price spirals in Europe so far. In the eurozone, forward-looking indicators of wage development are at. Moreover, the institutional mechanisms, such as the degree of wage indexing or unionization, that may favor such spirals are weaker today than they were in the Another possible explanation is that policy preferences have shifted over the last few decades, with lower in ation now considered to be worth a greater sacri ce in terms of economic growth. But this seems unlikely, given the crises with which all three economies – especially the eurozone – have grappled over the last 15 years, and the growth headwinds they face today.

The 2007-09 global nancial crisis marked the beginning of a dismal decade, particularly for Europe, at the end of which the COVID-19 pandemic upended the global economy.

Since the fourth quarter of 2019, US GDP has grown by just 4.4%, but the eurozone has achieved only 2.2%

It is hard to imagine any of these economies making it through anoth er decade of slow growth without su ering serious losses to potential output or doing lasting damage to the most vulnerable segments of so ciety. Such protracted economic stagnation would most likely have severe political repercussions as well, particularly in the EU and the UK. Perhaps, then, central banks are moving so fast because they believe that rapid disin ation will not carry such high costs, in terms of output and employment, as it did in the 1980s. But given all the academic evidence to the contrary, this also seems implausible. In fact, monetary tightening will do more damage to output and employment when ination is fueled by a terms-of-trade shock that erodes real income – the case in Europe today – than when excessive aggregate demand is the culprit.

The only other possible explanation for central bankers’ haste is that they know something we do not. If so, they should explain it. Otherwise, they should proceed with caution, recognizing that continued rapid monetary tightening may bring huge economic costs. It may also reap the whirlwind of a backlash which threatens central bank independence.

AfDB approves $50 m loan for ECOWAS Bank for Investment and Development

must begin frank discussions on current developments in Green Shipping initiatives which involve the use of alternative fuels with low or zero carbon, in place of fossil fuels -that is fast becoming the new way of shipping. To this end, she urged Africa’s Maritime Industry to be prepared for the cost rami cations of the impending transition to cleaner fuels to Ship-owners translating to increased freight rates. “I will urge MOWCA to consider

A Deputy Minister of Trade and Industry, Herbert Krapa, has called on member countries to consider critically the incentives they give to investors, in order to ensure that they are smarter and would yield results in the long run.

Speaking at the rst Annual Assembly of African Investment Promotion Agencies summit in Accra, he said “We have taken some signi cant steps but now is the time to pay attention to investments that will ensure that AfCFTA thrives, that it takes o fully and that is why I mentioned in my remarks that it is happening at a very good time to see how they can streamline regulations, goods, resources, work with government institutions.

the e ects of the market-based measures under discussion within the International Maritime Organisation on our economies. It would also be pertinent to identify possible ways to benet from any fund arising thereof, in order to minimize the e ects of the transition on all players, particularly Least Developed Countries LDCs) and Small Island Developing States (SIDS).

Dr. Paul Adalikwu, the Secretary-General of MOWCA disclosed that the organization has rmed up plans to set up the Mar-

what we are doing is we have set up a coordination o ce and we are providing them with the systems, to ensure that they are able to trade under the AfCFTA, what they are doing is collecting data to allow the ministry to go to cabinet to design a special package for AfCFTA trade -power, cost of credit, infrastructure, all of those issues government is paying close attention to, so we can take advantage of the duty free, quota free export opportunities that is available.

We are fully ready, customs is a competent authority to provide the certi cate of origin and we have all of them, we want more of them to have the productive capacity to trade at scale so that they can take the bene ts of AfCFTA.”

itime Development Bank to be located in Nigeria, of which MOWCA’s global pro le is being ramped up through her rm and active mutually rewarding links to the global International Maritime Organisation and the emergence of a pan-African Maritime organization. MOWCA’s objective is to serve the regional and international community for handling all maritime matters that are regional in character. MOWCA uni es 25 countries on the West and Central African shipping range.

ment Promotions Agencies (IPAs) across the continent to take advantage of the relationships among member states to strengthen regional trade in order to make the Africa Continental Free Trade Area (AfCFTA) a reality.

According to Mr.Grant, the time is ripe for the continent to chart a new path in the African Foreign Direct Investment(FDI) story as well as liberalizing tari s in Africa would unleash billions of dollars in untapped export potential and with plans under way to remove market frictions that hinder intra-Africa trade, AfCFTA is on course to increase intra -African trade by 81% by 2035.

By Eugene Davis

Ghana is ready in terms of institutional support, factories and private sector production,

The CEO of Ghana Investment Promotion Centre (GIPC) Yo Grant on his part rallied Invest-

He said “We the IPAs have decided to come together to go through what we believe should be the questions that we ask ourselves and to ensure we play a

very critical role in ensuring that the AfCFTA becomes a re-

For us in Africa, we think the opportunity is real, we think it is looming right in front of us and we need to take advantage, and to do that we need to facilitate intra-continental investment to bring about intra-continental trade, so notwithstanding the problems we have today, those problems would be resolved, the world will go on and it will recover.

There is opportunity for us to add value to our raw materials and resources and leverage on the higher ends of the value

I dare say our private sector is ready and what all they need is redirection into where the opportunities are and they will elevate themselves and be a credible partner to economic

Emily Njeri Mburu-Ndoria, Director of Trade, AfCFTA indi-

Integratedeffort key to unleashing prospects in maritime sector -Transport

By Eugene Davis

The Minister of Transport, Kwaku Ofori Asiamah, has asked players in the maritime space to collaborate e ectively in the development of relevant strategies for the operations, extraction and utilization of maritime resources.

According to him, the mandate of the Maritime Organisation of West and Central Africa (MOWCA) is essential and e orts should be championed for its e ective and ecient operation.

“I must reiterate that; no single Member State can make signi cant strides on their own. Areas such as maritime security, maritime safety and navigation, port and infrastructure development, environ-

Emirates has operated its rst milestone demonstration ight on a Boeing 777-300ER, powering one of its engines with 100% Sustainable Aviation Fuel (SAF).

The ight took o from Dubai International Airport (DXB), and was commanded by Captain Fali Vajifdar and Captain Khalid Nasser Akram, ying for more than one hour over the Dubai coastline.

The demonstration ight powered by SAF holds particular signicance as the UAE declares 2023 the ‘Year of Sustainability’. The year will showcase the UAE’s commitment to seeking innovative solutions to challenges such as energy, climate change, and other issues related to sustainability. The ight supports collective industry e orts to enable a future of 100% SAF ying and help advance the UAE’s sustainability objectives.

Emirates’ demonstration ight, the rst in the Middle East and North Africa to be powered by 100% SAF, supports broader efforts to reduce lifecycle CO2 emis-

mental protection, sheries amongst others can only become e ective when approached with a coordinated and integrated e ort,” the Minister said this at the 17 Extraordinary Session of the General Assembly of MOWCA in Accra.

Mr. Asiamah who is also the chairman of MOWCA also encouraged members to focus on actions that will ensure its people bene t while tackling some deep-seated issues, including rules of procedure, nancial regulations and conditions of sta .

Further, Mr. Asiamah stated that member states dependence on imports of nished goods and ex-

sions as the industry looks to scale up its use of SAF. The ights will also help to re ne the playbook for future SAF demonstrations, and will also support future certication where 100% drop-in SAF fuel is approved for aircraft. Currently, SAF is approved for use in all aircraft, but only in blends of up to 50% with conventional jet fuel.

Emirates worked alongside partners GE Aerospace, Boeing, Honeywell, Neste, and Virent to procure and develop a blend of SAF that closely replicates the properties of conventional jet fuel. At each blend ratio, a host of chemical and physical fuel property measurements were carried out. After multiple lab tests and rigorous trials, they arrived at a blending ratio that mirrored the qualities of jet fuel. Eighteen tonnes of SAF were blended, comprised of HEFA-SPK provided by Neste (hydro-processed esters and fatty acids and synthetic para nic kerosene) and HDO-SAK from Virent (hydro deoxygenated synthetic aromatic kerosene). The 100% SAF

cated that the AfCFTA Secretariat would work closely work with the World Association of Investment Promotion Agencies (WAIPA) and relevant stakeholders to put together an annual IPA network forum.

The Executive Director of WAIPA, Ismail Ersahin on his part stated that his organization is keen to support IPAs attract not just any investments, but sustainable investments.

Africa accounts for just 2.3% of global exports – with an export basket heavy on primary commodities and natural resources. While only 16% of the continent’s exports are destined for other African countries, much of this trade is in semi-processed and processed goods.

Strengthening regional trade is therefore crucial to support greater value addition, diversify supply chains, boost resilience to crises and to industrialize – ultimately contributing

to job creation and better livelihoods on the continent.

The AfCFTA promises broader and deeper economic integration and would attract investment, boost trade, reduce poverty, and increase shared prosperity in Africa and at full operation: Africa could see FDI increase by between 111 percent and 159 percent under the AfCFTA.

Wages would rise by 11.2 percent for women and 9.8 percent for men by 2035, albeit with regional variations depending on the industries that expand the most in speci c countries.

Fifty million people could escape extreme poverty by 2035, and real income could rise by 9 percent. Under deep integration, Africa’s exports to the rest of the world would go up by 32 percent by 2035, and intra-African exports would grow by 109 percent, led by manufactured goods.

ports of raw materials can only be facilitated by shipping which is a major activity in maritime industry.

It is estimated that about 80percent of international trade is done via maritime space, with the minister adding that shipping remains the most-e ective way of transporting any large/bulk amount of goods over a great distance.

The Minister of Foreign A airs, Shirley Ayorkor Botchwey, who was the guest of honour indicated that the organization must begin frank discussions on current developments in Green Shipping initiatives which involve the use of alternative fuels with low or zero

supplied one GE90 engine, with conventional jet fuel supplying the other engine.

The test ight further demonstrates the compatibility of the specially blended SAF as a safe and reliable fuel source. The promising outcome of this initiative also adds to the body of industry data and research around SAF blends in higher proportions, paving the way for standardization and future approval of 100% drop-in SAF as a replacement for jet fuel, well above the current 50% blend limit.

Adel Al Redha, Chief Operating Ofcer, of Emirates Airline said: “This ight is a milestone moment for Emirates and a positive step for our industry as we work collectively to address one of our biggest challenges - reducing our carbon footprint. It has been a long journey to nally see this demonstration 100% SAF ight take o . Emirates is the rst passenger airline in the world to operate a Boeing 777 powering a GE engine with 100% SAF. Such initiatives are critical contributors to indus-

carbon, in place of fossil fuels -that is fast becoming the new way of shipping.

To this end, she urged Africa’s Maritime Industry to be prepared for the cost rami cations of the impending transition to cleaner fuels to Ship-owners translating to increased freight rates.

“I will urge MOWCA to consider the e ects of the market-based measures under discussion within the International Maritime Organisation on our economies. It would also be pertinent to identify possible ways to bene t from any fund arising thereof, in order to minimize the e ects of the transition on all players, particularly Least Developed Countries LDCs)

and Small Island Developing States (SIDS).

Dr. Paul Adalikwu, the Secretary-General of MOWCA disclosed that the organization has rmed up plans to set up the Maritime Development Bank to be located in Nigeria, of which MOWCA’s global pro le is being ramped up through her rm and active mutually rewarding links to the global International Maritime Organisation and the emergence of a pan-African Maritime organization. MOWCA’s objective is to serve the regional and international community for handling all maritime matters that are regional in character. MOWCA uni es 25 countries on the West and Central African shipping range.

try knowledge on SAF, and provide data to demonstrate the use of higher blends of SAF for future regulatory approvals. We hope that landmark demonstration ights like this one will help open the door to scale up the SAF supply chain and make it more available and accessible across geographies, and most importantly, a ordable for broader industry adoption in the future.”

“GE Aerospace congratulates Emirates on this major achievement. SAF is critical to helping the aviation industry reach its goal to be net zero by 2050 and collaborations like this to test 100% SAF globally will help bring us closer to this target,” said Aziz Koleilat, Vice President of Global Sales and Marketing for the Middle East, Eastern Europe, and Turkey at GE Aerospace. “All GE Aerospace engines can operate on approved SAF blends today and we are helping support the approval and adoption of 100% SAF.”

“Boeing congratulates Emirates on its successful ight tests using sustainable aviation fuel (SAF),” said Omar Arekat, Vice President, Commercial Sales and Marketing, Middle East, The Boeing Company. “SAF will play a critical role in the aviation industry’s commitment to be net zero by 2050, requiring strong industry collaboration. We were proud to partner with Emirates on these tests and look forward to further working with our partners to enable the widespread use of SAF across the globe.”

“We are excited to apply our technology to such a milestone demonstration. The 331-500 auxiliary power unit or APU is an integral part of the Boeing 777 aircraft system. The APU provides main engine starting, environmental control, and emergency back-up systems for the aircraft on the ground and in- ight. It uses the same fuel as the main propulsion engines. Currently, the APU is certi ed to run on only 50% SAF, so this demonstration is a big rst step in showing full APU functionality and capability when running on 100% SAF,” said Mosab Alkubaisy, Director of Airlines, Honeywell Aerospace Middle East.

Jonathan Wood, Vice President EMEA, Renewable Aviation at Neste said: "Sustainable aviation fuel plays a crucial role in reducing the emissions of air travel but to fully leverage its decarbonization potential we need to enable 100% SAF use. Test ights like

this Emirates ight with Neste MY Sustainable Aviation Fuel are an important step towards 100% SAF certi cation. Neste is working closely together with partners to accelerate the availability and use of SAF as we increase our SAF production capacity to 1.5 million tons per annum by the end of this year. We look forward to growing the supply of SAF also to Dubai.”

“Virent’s technology converts widely available, plant-based sugars into the compounds that make 100% sustainable aviation fuel possible, without the need to blend with traditional jet fuel,” said Dave Kettner, President and General Counsel of Virent, Inc.

“Along with our parent company Marathon Petroleum Corporation, we are committed to meeting today’s energy needs while investing in an energy diverse future, and today’s ight is a great example of this commitment. We’re excited about this opportunity to work with our forward-thinking colleagues at Emirates, GE Aerospace, Boeing, Honeywell and Neste as we demonstrate that we can power sustainable aviation without modifying today’s modern airline engines or the infrastructure that serves the airline industry.”

His Excellency Saif Humaid Al Falasi, Group CEO at ENOC praised the achievement as it coincides with 2023 as the 'Year of Sustainability', which was announced by the UAE’s President His Highness Sheikh Mohamed bin Zayed Al Nahyan. It also represents a major step towards reducing carbon dioxide emissions and achieving climate neutrality. His Excellency added: “At ENOC, we prioritise working closely with our strategic partners to implement a national roadmap for sustainable aviation fuel. This not only aims to accelerate the decarbonisation of the aviation sector but also contributes to achieving the UAE’s goals in climate neutrality, enhances the e ciency and conservation of fuel, as well as positions the UAE as a regional hub for sustainable aviation fuel. Playing an active role in supplying Dubai Airports with aviation fuel, ENOC Group is participating in this achievement by securing and blending sustainable aviation fuel, which will help to secure this type of fuel in the UAE in the future.”

Emirates is committed to supporting initiatives that help minimise its CO2 emissions, and the airline has already made great strides in fuel e ciency and conservation as well as operational advancements across its operations. The airline also supports IATA’s collective industry commitment to reach net zero emissions by 2050 and is exploring opportunities to augment operational fuel e ciency, SAF, low-carbon aviation fuels (LCAF), and renewable energy.

The airline already runs a comprehensive fuel e ciency programme that actively investigates and implements ways to reduce unnecessary fuel burn and emissions, wherever it is operationally feasible. Some of the programme’s most signi cant initiatives include the operation of “ ex tracks”, or exible routings - partnering with air navigation service providers to create the most e cient ight plan for each ight. These efforts have been ongoing since 2003, and Emirates has been working with IATA to extend this routing system across the world as a standard operating procedure where possible.

Malta Guinness, headline sponsors of the Women’s Premier League has awarded coaches and players for their sterling performance during the rst phase of the Malta Guinness Women’s Premier League.

The awards initiative is in ful llment of Malta Guinness’ commitment to set up a monthly awards at the start of the partnership with the Ghana Football Association. The monthly awards will honour selected players and coaches each month for their outstanding performance.

Yusif Basigi, Head Coach of Hasaacas Ladies, Stella Nyamekye of Dreamz Ladies, Coach Joe Nana Adarakwa, of Ampem Darkoa Ladies F.C. and Ophelia Serwaa also of Ampem Darkoa Ladies F.C. received cash prizes and goody

Malta Guinness awards coaches, players of the Women’s Premier League for sterling performance

bags from Malta Guinness for the months of October and November, 2022 respectively.

Marketing Manager, Malta Guinness, Dinah Adu-Asare, “We aim to inspire a world of good at all times as a business. We believe rewarding coaches and players of the Malta Guinness Premier League for their outstanding performance will go a long way to drive excellence. We remain con dent that as we go into the second phase of the league, we will see more exciting play and results.”

The next phase of the season promises to be more exciting and power-packed with lots of activities including stakeholder engagements with the football and business communities, capacity building workshops for players as well as other activations across the country.

The sponsorship of the Women’s Premier League is in furtherance of Malta Guinness’ promise of creating a World of Good and championing the progressive

portrayal of women through football.

In 2022, Malta Guinness, signed a three-year contract with the Ghana Football Association to support the Women’s Premier League. The decision to support the Women’s Premier League is based on the brand’s commitment to championing diversity and inclusion and demystifying misconceptions around women’s football. Through this, Malta Guinness is reigniting the love for women’s football, fueling the can-do spirit among women in sports, and providing a platform for them to showcase their skills and talents and encourage other aspiring athletes to venture into sports.

Beyond football, Malta Guinness as part of its sustainability agenda is carrying out the Plastic Collection Drive to champion plastic waste recycling nationwide through community mobilization, engagements and partnerships. So far, the community-focused initiative has been held in Alogboshie, Kaase and Mallam- Gbawe.

GTS, MASLOC Regional Manager to spearhead economic projects in Upper West Region

with Gulf Technology Systems on agricultural and industrial projects in the upper West Region of Ghana.

A full economic growth program was signed by Abdul Aziz Moniesson Suleman and Gulf Technology Systems and renowned Israeli businessman, Samuel Shay.

Among other things, which is set begin in due course, seeks to take agricultural production in the Upper West Region into a new phase, maximize the yield and the use of existing crops and industrialize the agricultural sector to process the crops for added value with full renewable energy program and education and training plan.

The partnership is to begin with initial two projects which shall focus on Moringa , Casava, Ginger, and other existing crops in the region follow with full educational and training

Three cheers for hybrid work

By Pinelopi Koujianou Goldberg

There is no shortage of hyper-

bole in the debate about whether companies should demand a full return to o ce work. According to Citadel’s Ken Gri n, the hedge fund owes its record-breaking $16 billion haul last year to its sta ’s full-time presence in the o ce.

But such sound bites ignore all the bene ts that remote work o ers to employers, employees, and the economy more broadly.

Naysayers dismiss employees’ preference for remote work as a manifestation of entitlement or “quiet quitting” (doing the bare minimum to remain employed). But that snap judgment is far too crude.

A recent study by Harvard University economist Raj Chetty’s Opportunity Insights lab estimates that there are around 2.6 million people in the United States who should be working, but are not. At a time when many employers cannot ll vacancies, o ering greater exibility both increases the applicant pool and contributes to higher retention rates, easing the pressure on hiring.

Happier employees also tend to be more productive. Survey data on attitudes toward remote work from multiple countries show that many em-

ployees were surprised by their own productivity during the pandemic. Remote work saved them hours of exhausting commutes, and they were able to tailor their days to do their work when they felt most productive. Women and parents of young children especially came to appreciate – and make the most use of – this newfound exibility.

More broadly, remote work o ers greater opportunities for labor-market participation to talented individuals who had been previously disadvantaged by time or mobility constraints (including not just women and parents but also people with disabilities). Research by Harvard’s Claudia Goldin shows that the need to work long hours outside the home at prescribed times is one of the most important challenges that women (especially those with a college education) face in the labor market.

Remote work thus could help eliminate some of the tension between career and family. But as the pandemic taught us, leveraging remote work to the fullest requires complementary policies, especially adequate childcare. Otherwise, remote work will not spare women from the double duty of full-time employment and managing household and childcare responsibilities. If broadly implemented and accompanied by the right poli-

Each project under the partner ship will work to increase the yield, mechanize the farm work and expand growing area.

Under the partnership, factories and processing plants are to be built for manufacturing the raw crops into products.

The aim of the collaboration is not only to improve agricultural production in the Upper West Region, but also to keep as much of the processing stages locally, thus keeping most of the value and work opportunities in the region.

As part of its mandate under the partnership, the region will be re sponsible to facilitate the alloca tion of the land needed for facto ries, eld plantations, transporta tion and handling as needed.

The Upper West Region of Ghana is well-known for its local resourc es and ability to support major economic growth.

cies, remote work would deliv er far-reaching bene ts for the overall economy. It would reduce labor costs and thus inationary pressures, because employees could move to cheaper locations. And these relocations could in turn lower congestion costs, making commutes easier and less expensive for those who still need to be physically present in the workplace. In real-estate markets, rents and house prices would be more evenly distributed geographically. Though this might raise prices in some previously low-cost locations, it would eliminate the extraordinarily high rents and house prices found in highly congested areas such as the New York City metropolitan area or the San Francisco Bay Area. Of course, there are also some disadvantages to consider. In some sectors, employers worry that a lack of structure, o ce “culture,” or the ability to monitor employees’ prog-

ductivity. And since remote work is not an option in many industries – from restaurants to health care – its uptake might add another dimension to labor-market inequality.

Still, even those workers who need to show up every day would bene t indirectly from remote work, through the reduction in commuting costs, rents, and house prices. Moreover, if markets are functioning properly, there should be a compensating di erential for workplace labor. Employees already seem to recognize this tradeo . Recent estimates suggest that, on average, employees would be willing to give up 5% of their pay to work from home 2-3 days per week. Critics of remote work also often argue that personal interaction (at the proverbial water cooler) fosters creativity and innovation, as if to suggest that new ideas never emerge from a Zoom screen. And, of course, many employers and employees (especially younger cohorts) cherish a

good o ce culture. But most of these needs can be met through hybrid models, whereby employees are physically present on a few pre-determined days of each week or month.

Finally, it is true that the widespread adoption of remote or hybrid work would have serious implications for the future of city centers, particularly those that are deemed less appealing or competitive. Many local jobs, especially in services and entertainment, would be lost, contributing to a vicious cycle of urban decline. And yet the advantages of remote, and especially hybrid, work seem to outweigh the disadvantages, especially if such work is supplemented by complementary policies to provide childcare and support urban development. The COVID-19 pandemic was horrible for everyone. But like every crisis, it taught us some valuable lessons and accelerated innovation in certain sectors. Remote and hybrid work are a silver lining of a prolonged tragedy. We should cling to it.

After the “currency wars” of the previous decade and the “trade wars” unleashed by former US President Donald Trump, a new kind of con ict is emerging between two of the world’s leading powers. Or at least that was the talk during the World Economic Forum in Davos, where pundits and policymakers fretted over so-called “subsidy wars.”

The rst shot was red with the United States’ passage of the In ation Reduction Act (IRA), which includes $369 billion in subsidies and tax benets for American companies using green technologies. In response, European Commission President Ursula von der Leyen promised to loosen the European Union’s rules on state aid, enabling member states to pump cash into green industries. “To keep European industry attractive, there is a need to be competitive with o ers and incentives that are currently available outside” the EU, she said, at pains to defend the bloc’s protectionist turn. To be fair, those concerned about the costs of a European-American subsidy war are mainly academics. Businesspeople dislike subsidies only when they are not receiving them. “It is a game-changer,” I heard a tycoon say about the

IRA. He added that his company recently decided to launch four mammoth green investments in the US and would consider doing the same across the Atlantic if the EU put enough money on the table.

With the recent US and European moves, the green subsidy debate is heating up. Proponents of these policies describe them as an indispensable response to the existential threat of climate change, while skeptics claim that the massive deployment of resources will inevitably lead to rent-seeking and ine ciency.

The issue is not whether governments should subsidize environmentally friendly industries. It is widely acknowledged that because the social returns on green investments exceed the returns that accrue to private rms, governments must provide nancial incentives to prevent under-investment. Instead, the issue is whether governments should o er those incentives only to domestic companies.

In Davos, von der Leyen called on President Joe Biden’s administration to grant European companies operating in the US access to the same subsidies as domestic rms. But in the unlikely event that Biden agreed, that would still put the

rest of the world at a disadvantage. If an electric car assembled in Michigan by an American company yields the same emission savings as a similar car assembled in Seoul by a South Korean company, why subsidize one and not the other?

There are at least three reasons why a subsidy war could be economically harmful. The rst is retaliation. While green subsidies could encourage more investment, they could also entrench ine cient incumbents. If the US and the EU cooperatively decided on the level of subsidies, they would choose what is “right” for both. But that is not the outcome in a subsidy war. One side’s attempt to attract green investment triggers a reaction by the other side. The subsequent escalation of subsidies and counter-subsidies can cause costs to outweigh benets.

The second problem is that what is good for Europe and the US is not necessarily good for the world. If the goal is to reduce global greenhouse-gas emissions, the planet might be better o if dollar and euro subsidies were used to buy cheaper Chinese solar panels. That way, the same expenditure would accomplish more emission reductions and lower

temperatures for all of humanity. The third risk is that a subsidy war might lead to a waste of scal resources. If long-term real interest rates in the US and the EU remain below their growth rates, as many eminent economists believe, then this is a non-issue, because governments can spend and borrow without having to raise taxes in the future. But if the era of low interest rates is over, then the huge scal cost of green subsidies should be a concern.

How big are these economic risks?

No one can be sure, but there are reasons to take dire warnings with a grain of salt. For example, recent estimates suggest that Trump’s trade war with China had a much smaller e ect on the US economy than many had predicted, resulting in welfare losses of roughly 0.1% of GDP. And that war was fought with tari s, which discourage trade, while subsidies encourage bene cial emissions reductions. In addition, eligibility for the subsidies depends on complex “domestic content” requirements that can be tweaked if they become too onerous.

Moreover, the economic impact of a US-EU subsidy war on the rest of the world will most likely be limited. Yes, rms outside the US and the EU might be harmed. But if green subsidies accelerate the clean-energy transition and help contain global warming, the whole world will reap the bene-

ts.

The same goes for scal risks. Yes, both the US and the EU could eventually encounter problems if real interest rates continue to rise and stay high. But if and when that day comes, there are many other wasteful expenditures that governments could and should reduce before cutting green subsidies.

The more immediate risk is political. The US subsidies violate the World Trade Organization’s rules prohibiting discrimination against products or rms based on their country of origin. The EU must not follow in Biden’s footsteps. At a time of heightened geopolitical tensions, the world’s leading democracies should aim to strengthen the global rules-based system, not undermine it.

Most importantly, a subsidy war would sour political and diplomatic relations between the US and Europe at the worst possible time, when liberal democracies face Russian aggression in Ukraine, Chinese expansionism, and illiberal regimes in Central and Eastern Europe, Asia, and Latin America. If we are to mitigate the worst e ects of climate change, American and European policymakers must work together, instead of being consumed by petty squabbles over green subsidies.

January 20,2023

January 20,2023

January 20,2023

January 20,2023

Stanbic Bank employees refurnish girls’ dormitory at echoing hills village

tional growth. She said, “We're more than just a bank. We look beyond the nancial outcome to create more value socially, economically and environmentally. Driving Ghana’s growth is also about giving our future leaders the tools they will need to move the world forward. It is the greatest and most valuable investment we can make. It is our most empowering and meaningful contribution. That is why we have decided to reach out to the Echoing House Village, to support them by refurbishing their girls’ dormitory, providing furniture for the common room as well as donating food items.

“We believe every child has a right to quality education. The Echoing Hills Village school is doing a tremendous job at providing these wonderful children with proper education and care. By this donation, we believe that these children will have the opportunity to study mitment to supporting access to quality education to drive na-

in a more conducive and hygienic environment and ease pressure on caretakers.”, she added.

Receiving the items on behalf of the school, Chairman of the Board of the Echoing Hills Village, Reverend Joe Ocran, thanked the Bank for their generosity.

He said, “We are very grateful to Stanbic for their show of generosity towards us. This school has been in existence for close to three decades, and the structures are dilapidating. I am glad that as a business they have gone beyond making pro t to giving back to the society. This donation will go a long way to help us as a school and we hope that they will come again to do more.”

The Echoing Hills Village Orphanage and Rehabilitation Centre located at Madina in the Greater Accra Region caters for the homeless and abandoned children, victims of child abuse, orphans, special chil-

Gulf Technology Systems to collaborate with gov’t on agricultural and industrial projects

the agricultural sector to process the crops for added

The partnership is to begin with initial three projects which shall focus on rice, coconut and bamboo.

Each project under the partnership will work to increase the yield, mechanize the farm work and expand growing

Under the partnership, factories and processing plants are to be built for manufacturing the raw crops into products.

The aim of the collaboration is not only to improve agricultural production in the Western Region, but also to keep as much of the processing stages locally, thus keeping most of the value and work opportunities in the region.

As part of its mandate under the partnership, the region will be responsible to facilitate the allocation of the land needed for factories, eld plantations, transportation and handling as

Technology Systems (GTS) and the Government of Ghana through the Western Regional Coordinating Council are set to collaborate on agricultural and industrial projects.

nating Council on January 18, 2023, agreed to collaborate with Gulf Technology Systems on agricultural and industrial projects in the Western Region of Ghana.

Regional Minister, Kwabena Okyere Darko-Mensah (MP) and addressed to the President of Gulf Technology Systems and renowned Israeli businessman, Samuel Shay, announced the

Among other things, the collaboration seeks to take agricultural production in the Western Region into a new phase, maximize the yield and the use of existing crops and industrialize

The Western Region of Ghana is well-known for its agriculture production, and is responsible for a good number of Ghana's food crops. It is considered the number one contributor to Ghana’s Gross Domestic Product (GDP).

The High Net Worth (HNW) Unit of Stanbic Bank, as part of their Employee Community Ini tiative brought smiles to a spe cial place last weekend. The team refurbished the girls’ dren and a few adults with spe cial needs.