Investment Times Newspaper 2023 Edition | Issue 62

Central bank warns against 97 illegal loan Apps

IFS sounds alarm on IMF-induced revenue mobilization strategies

By Patrick Paintsil

The Bank of Ghana has cautioned unlicensed entities that are engaged in the provision of loans through mobile applications to the Ghanaian public.

The central bank said this was in contravention of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930).

In a notice, the BoG said it would continue to take action against these entities in collaboration with relevant state agencies to promote the integrity of nancial service delivery.

“The general public is therefore advised to desist from doing business with all unlicensed loan pro-

ThriveAgric empowers over 500,000 smallholder farmers to scale food production in Africa

Economic policy think tank Institute for Fiscal Studies (IFS) has blown the whistle on government’s tax-laden domestic revenue mobilization approach under the three-year extended credit facility-supported programme with the International Monetary Fund (IMF) saying it is inimical to private sector growth and a drawback to the

deals with

By Eugene Davis

Making Ghana the Medical Tourism Centre for West Africa- Part 1

By Philip Gebu

PPA renegotiation

IPPs to benefit state significantly -Atta Akyea 2

Ghana returns to gold top spot as output jumps 32%

By Patrick Paintsil

nation’s aggressive industrial drive.

“The [IMF] programme’s e ort to increase government revenue mobilization relies unduly on taxes; an overreliance on taxes, however, is certain to hurt businesses and industries, and ultimately harm the competitiveness of the economy and its long-term growth potential,” senior

research fellow and acting executive director of the institute, Dr. Said Boakye said at a press conference in Accra.

The 2023 budget has seen the introduction of several new taxes as a prior action for the approval of the IMF bailout programme, with more taxes anticipated under the government’s tax-centered revenue strategy.

“Although the country’s public revenue generation is low and must be expanded, a tax-centered approach is not the way to go,” Dr. Boakye reiterated.

Private sector businesses are currently overburdened with taxes amid surging in ation, an unstable foreign exchange regime and high utility tari s but the IMF programme recom-

mends further taxes, an action that the IFS opines could undermine its growth.

Despite consenting to most of the scal reforms that are prescribed under the programme, given the severity of the economic malaise, the scal policy think tank opined that excessive taxation coupled with other ‘unfavourable’ measures proposed by the programme could do the economy more harm than good.

Another harmful suggestion, according to the IFS, is the plan to adjust fuel levies in line with in ation and exchange rate changes to raise more revenue given the direct in uence of such an action on the economy.

“Adjusting fuel levies in line with in ation will raise fuel prices and feed back into in ation thereby creating a vicious cycle of higher fuel prices and worsening in ation.

These two [over-taxing and tying fuel adjust-

ments to in ation or exchange rates] would be too high a macroeconomic price to pay in a bid to increase revenue,” the IFS further argued.

Ghana’s three-year extended credit facility-supported programme with the IMF seeks to restore macroeconomic stability and debt sustainability whilst laying the foundations for higher and inclusive growth.

This is to be achieved on the ve pillars of lasting scal adjustments, tight monetary and exchange rate policies, structural reforms on debt sustainability, strengthened nancial sector stability and reforms that support inclusive economic growth.

The IFS further advised the government against implementing its growth-oriented programmes at the expense of strong scal consolidation, which is needed to restore macroeconomic stability.

PPA renegotiation deals with IPPs to benefit state significantly -Atta Akyea

The Chairman of the Mines and Energy Committee of Parliament, Samuel Atta Akyea has disclosed that Power Purchase Agreements (PPA) renegotiation exercise are ongoing, with Cenpower, Amandi,

Karpower and Sunon Asogli deals expected to close soon.

According to him, the PPA renegotiation exercise which is underway is aimed at downsizing invoices raised for payment

by ECG. His comment follows the NDC minority’s earlier statement on the State of Ghana’s Energy Sector, where they responded to comments made by the World Bank Country Director Mr

By Eugene Davis

Laporte, who indicated that the country’s energy sector debt was a major contributor to its debt woes.

The minority in a subsequent news conference in Parliament on Tuesday (6 June), its spokesperson on

Energy and Mines, John Abu Jinapor, challenged Laporte to provide evidence to substantiate his claim.

“President Mahama’s record in the energy sector is unmatched, before leaving o ce, Mahama ensured that we had a comprehen-

sive foothold on generation, fuel and the nancial sector,” he said.

They further stated that former President John Mahama did no wrong in signing those arrangements and was in the country’s best interest.

The minority also maintained that the Nana Akufo-Addo-led government is very much aware of the critical role the Energy Sector plays in the economy of the country and is focused on addressing the challenges, and will not yield to distractions from the NDC.

However, addressing journalists at parliament house on Wednesday, June 14, 2023, Mr. Atta Akyea stated “Currently, the renegotiation has led to signicant reduction in invoices from AKSA, and the CENIT plants. Renegotiation with Cenpower, Amandi, Karpower and Sunon Asogli will soon close with signi cant bene ts to the people of Ghana.”

He also touched on the issue of idle capacity, between 2017 and 2020, where he pointed out that the annual cost of idle capacity ranged between US$ 105.4 million and US$ 373.7million per year, “Over the period, a total amount of US$ 368 million had been paid for idle capacities and a further US$ 600 million had been paid for the cost of reserve margins totalling US$968million.”

Gas related issues

According to him, the claim regarding gas pricing especially the Tema LNG pricing is devoid of facts, misleading and demonstrates lack of knowledge and

understanding of the gas sector. First and foremost, the Tema LNG contract is for 17 years, not 20 years. Indexing LNG price to crude oil price is the normal business practice in the industry. Because LNG is globally traded, it is normally indexed to Brent Crude for supplies coming from outside of North American or Henry Hub gas price for supplies from North America.

It is therefore no surprise that, all the previous LNG contracts including those signed under the NDC government were also linked to crude oil price, he noted.

Further, Mr. Atta Akyea who is also the Member of Parliament for Abuakwa South, noted that government has outlined some interventions to address the energy situation since 2019 to signi cantly minimise the impact of the idle capacities and e ects of emergency power agreements on the energy sector.

The Energy Sector Recovery Programme (ESP) was instituted

and an inter-ministerial task force put in place to address and oversee the implementation of the proposed initiatives. Key among them are:

The establishment of the Cash Waterfall Mechanism (CWM) where there is a transparent sharing of Energy Sector revenues and more specically ECC's weekly collected revenues to all players in the electricity value chain such that entities that supply ECG with electricity and related services will always receive some streams of income to keep them liquid.

Within the CWM, the Natural Gas Clearing House has also evolved to ensure that all Natural Gas (NG) resources are being monitored and payments made to ensure the gas providers are also liquid.

One challenge encountered was the limited security of supply due to unavailability of alternative fuels. The NPP Government in this regard has provided alternative fuel sources to

address shortages in Natural Gas (NG) supply. Currently there are stocks of LCO, HFO and DFO for use in the event that NG supply is interrupted. Power Plants with capability to use alternative fuels are therefore available to support national energy needs.

The reverse ow of natural gas from the western corridor to the eastern corridor project is completed. This brings signi cant volumes of natural gas for use by thermal power plants in Tema, and Kpone.

The relocation of the Karpowership from Tema to Takoradi also resulted in a major drop in tari for the power plant when it switched from the use of HFO to natural gas. This also brought signi cant savings to GNPC under the NDC signed Sankofa contract.

370MW AKSA EPA

On the AKSA Emergency Power Agreement (EPA) after expiration on 31" July, 2022, Mr.Atta Akyea said it was renegotiated by ECG with better terms

for 15 years, with a dispatch guarantee of 40%. This is far better than the full take-or-pay arrangement under the expired EPA.

These better terms are:No payment guarantee,A tari of USD0.093478/kWh for the rst 10 years, A Tari of USD0.085978/kWh for the last 5 years.

“Compared to the expired EPA tari of USD0.127662k Wh, the new terms are clearly cheaper, as means of reducing the cost of generation, using natural gas. In addition, the deployment of this plant, taking into consideration the replacement cost of a new plant to meet the demand is optimal.”

205MW AKSA PPA

With regard to the 205MW new AKSA PPA, he stated that it is a take and pay agreement with a 40% dispatch guarantee to cover the day-to-day operation and maintenance expenses of the plant. It also comes with no payment and government guarantees. Furthermore, it is meant to provide system reliability in the middle and the northern belts of the country based on a system reliability study by the Ghana Grid Company (GRIDCo). To achieve the objective of reliability, there is the need to have a level of guaranteed dispatch of the plant.

The dispatch guarantee provided for in the new terms for contracting PPAs is also a gradual means

of reducing the cost of excess capacity payment that has plagued the sector from the numerous take or pay

agreements. The non-dispatch of this plant will save the country 60% of the cost compared to the

original contract.

On a similar issue raised by Dr. Kwabena Donkor concerning

Asogli and Karpower PPAs, “we wish to state that there is no 3rd PPA for Asogli. Neither has the Kar-

power PPA been extended to a regular PA of 20-25 years. Negotiations for these PPAs are still underway.”

ThriveAgric empowers over 500,000 smallholder farmers to scale food production in Africa

Leading agricultural technology company, ThriveAgric, has today released its 2022 Impact Report reiterating the company's mission to build the largest network of pro table farmers and accelerate an Africa that feeds itself.

In the year under review, the Nigeria-founded company scaled its operations into neighbouring Ghana, and Kenya in East Africa, amongst other feats.

To accomplish these groundbreaking milestones, the fast-growing agricultural company leveraged its proprietary technology and key partnerships with governments and global institutions including the Ghana Commodity Exchange (GCX), Promasidor (Kenya) Limited, VISA, and OCP Africa.

Samirah Bello, Partnership Lead at ThriveAgric said: “At ThriveAgric, we remain committed as an impact-driven and

customer-focused company. Through our strategic partnerships, we have been able to accelerate impact and reach meaningful milestones while tackling barriers confronting smallholder farmers in their day-to-day business. This report is an expansion of our 2017–2021 impact report, and we are proud to say that we have built a tech-driven agricultural enterprise that will eventually help feed both Africa, and the rest of the world.”

Speaking on the social impact, Uka Eje, CEO and co-founder of ThriveAgric said: “In addition to the social bene ts such as reducing poverty and improving gender equality, smallholder farmers that work with ThriveAgric produce double the national average yields due to access to better quality seeds, fertilisers and equipment. At ThriveAgric, we will continue to adopt a multifaceted approach that

includes collaboration between various stakeholders, increased investment, technology adoption, and sustainable agricultural practices. Our 2022 impact report is a testament that we are on the right track.”

Access to funding remains one of the biggest challenges confronting smallholder farmers in Africa. According to the Africa Development Bank (AfDB), agri-SMEs in Africa are critically underfunded with an

annual nancing gap of approximately $100 billion.ThriveAgric is bridging this gap by providing input nancing, providing data-led advisory to improve output, enhancing supply chain e ciency, and encouraging sustainable agricultural practices with the aim of building a network of pro table smallholder farmers and contributing to a food secure Africa.

Leaning into its Theory of Change (highlighted in the impact report), ThriveAgric aims to provide $500 million in

credit to 10 million smallholder farmers across Nigeria, Ghana, and Kenya in 2027, and to double this outcome by 2050. The company will also be working with organisations who leverage its Agricultural operating Software (AOS) to provide access to loans for their farmers, and is currently onboarding partners. With food security projected by the UN to rise to a record 310 million Africans by 2030, ThriveAgric has planned expansions into Tanzania, Egypt and Zambia to alleviate the potential impact.

Central bank warns against 97 illegal loan Apps

viders. Banks, Specialised Deposit-Taking Institutions and Payment Service Providers are cautioned not to facilitate the illegal transactions of unlicensed loan applications.

“The Bank reiterates that the activities of these entities signicantly breach customer data and privacy laws, as well as consumer protection requirements and norms, with unfavourable implications on the integrity and wellbeing of their patrons,” the notice pointed out. The BoG also encouraged the public to patronise the various types of digital credit products approved by Bank of Ghana and delivered by banks and specialised deposit-taking institutions in partnership with mobile money operators.

“The general public is advised to consult the Bank’s website using the link below for the approved list of licensed institutions, before transacting any business with an institution,” it stated.

Making Ghana the Medical Tourism Centre for West Africa- Part 1

There have been calls and plans to make Ghana the centre for Medical Tourism in West Africa. Recently Senior Presidential Advisor Yaw Osafo-Maafo charged the Korle-Bu Teaching Hospital to focus on developing some of its centres for medical tourism. He said the establishment of the National Radiotherapy Oncology and Nuclear Medicine Centre has contributed to boosting medical tourism as people from other countries travel to Ghana to seek medical care. “The National Centre for Radiotherapy Oncology and Nuclear Medicine have saved this country huge amount of foreign exchange because you can imagine those we are treating now if they were all to be nding treatment outside our shores…all this now taking place here. But most important thing is that the Centre is developing what I call medical tourism. A lot of people in the sub-region are coming down to get treatment from that Centre and this is one big advantage Korle-Bu should take as a policy to develop some centres as medical tourist centres because people believe in the Ghanaian skills and people will come down within our sub-region to get treatment and pay for it in dollars,” he said.

I attended a function in Volta Region and

the medical superintendent of the hospital emphasized that they receive patients from Togo and Benin. This indeed con rms that Ghana is on the way to be a hub for medical tourism in West Africa. What is needed is to develop a strategic plan. What is Medical tourism?

Medical Tourism

There is no general consensus on the de nition of medical tourism. Some de nitions are broad. For example, Deloitte (2008) de nes medical tourism as the ‘act of travelling to another country to seek specialized or economical medical care, well-being and recuperation’. Such a de nition may be interpreted as including travel that seeks to enhance personal health and well-being, including through authentic and location-based therapies. Wellness tourism, is sometimes included in a broad de nition of the medical tourism industry, thus some studies use the term medical and wellness tourism instead of medical tourism alone. Other de nitions are much narrower, considering only travel for the purpose of receiving treatment for a disease, ailment or medical procedure.

One may ask; is Medical tourism the same as Health tourism?

What is Health Tourism?

According to a report entitled Medical and

Wellness, Lesson from Asia, Health tourism encompasses both medical tourism (based on western medicines) and wellness tourism (based on traditional therapies such as Ayurveda). She refers to medical tourism as the act of travelling to foreign countries to seek ‘western-style’ medicine treatments and procedures (elective surgeries such as cosmetic, dental and plastic surgery as well as specialized surgeries such as knee/hip replacement, cardiac surgery, cancer treatments, fertility, orthopaedic therapy etc.).

Wellness tourism, on the other hand refers to authentic or location-based experiences/therapies such as Yoga, Ayurveda, use of

local medicines etc. The main di erence between health tourism and medical tourism is that health tourism does not involve any medical treatment or procedure. Health tourists usually travel to other countries to seek alternative treatments for conditions that cannot be treated in their home country. Medical tourism, on the other hand, involves traveling to another country for medical treatment or procedures. Medical tourists often travel to countries where the cost of medical care is cheaper than in their home country. They may also travel to countries with better medical facilities and more experienced doctors. Ghana o ers other alternatives form of treatment apart from

By Philip Gebu

treatments in Korle- Bu. These other form of tourists

According to Market.us, the global medical tourism market accounted for USD 11.7 billion in 2022 and is projected to reach USD 35.9 billion by 2032, exhibiting a CAGR of 12.2% in the forecast period (2023-2032). Medical tourists travel internationally to improve their health and access low-cost healthcare services unavailable in their home country. Tourists can receive various medical services, including dental, neurological, or cardiovascular treatments. Medical Tourism o ers many bene ts, including improved hospitality, personalized care, cutting-edge technology, and novel medicines. It also provides better

healthcare.Get additional highlights on major revenue-generating segments, Request a medical tourism market sample report at https://market.us/report/medical-tourism-market/request-sample/

Key Takeaway:

• By service type, the medical treatment section dominated the market in 2022 because of the increase in the demand for medical processes dental, orthopedic, cardiology, and spine.

• By ser-

vice provider type, the private segment dominated the market in 2022 because the number of providers giving world-class facilities is increasing.

• In 2022, North America dominated the market with the

highest revenue share of 35%.

• Asia-Paci c is expected to grow at a high CAGR during the forecast period due to the increasing preference for medical tourism in the region. Insu cient insurance pro ts and lack of local healthcare insurance are two factors that will encourage market expansion. The industry's growth is also supported by the increasing demand for services that are not covered, such as dental reconstruction, common removal surgery, aesthetic surgery, and reproductive therapy.

Factors a ecting the growth of the medical tourism industry?

Several factors can a ect the growth of the medical tourism industry. Some of

these factors include:

• Low-cost surgeries: Countries like India and Thailand are providing fast and low-cost surgeries, positively a ecting the market growth.

• Increasing quality of surgeries: The increase in the accessibility of high medical-quality surgeries, like cardiovascular and dental surgeries, is one of the major driving factors for the market growth.

• Technological advancements: The use of advanced technologies in healthcare industries, especially in medical devices, surgical processes, etc., is a ecting the market positively.

• Declining COVID-19 cases: As the COVID-19 cases began to decrease, the travel

restrictions also have been lifted, which is helping the market grow further.

Top Trends in Global Medical Tourism Market

The most important trend driving the growth of the global medical tourism market is active consumer preference for cosmetic procedures. As COVID-19 cases began to decline, travel restrictions have been removed, and the demand for postponed or delayed functions has grown. As people have become more aware of their appearance and personal care, cosmetic procedures such as body fat removal and treatment for acne have seen an increase in demand. American Academy of Facial and Reconstructive surgery (AAFPRS) reported increased appointments and treatments

for facelifts, eyelifts, and other procedures, despite the COVID-19 pandemic. People are more inclined to choose these procedures in countries with skilled specialists and high-quality care. This will positively impact the market's growth over the forecast period.

Market Growth

The world is becoming more open to utilizing advanced medical technology in surgery, medical devices, and related healthcare. Patients can now access information and communication technology, telemedicine, and telehealth worldwide. As a result, they can consult, book appointments with specialists, and receive high-quality care without hesitation. This has resulted in an increase in inbound tourism to developing countries like India

and Thailand. In addition, the availability of quality medical structures and lower costs have led to a greater demand for a ordable treatment, helping the market grow.

Philip Gebu is a Tourism Lecturer. He is the C.E.O of FoReal Destinations Ltd, a Tourism Destinations Management and Marketing Company based in Ghana and with partners in many other countries. Please contact Philip with your comments and suggestions. Write to forealdestinations@gmail.com / info@forealdestinations.com. Visit our website at www.forealdestinations.com or call or WhatsApp +233(0)244295901/026 4295901.Visist our social media sites Facebook, Twitter and Instagram: FoReal Destinations.

Vodafone commits to environmental sustainability with tree planting initiative

In a bid to bolster the government's Green Ghana initiative, Vodafone Ghana embarked on a tree planting exercise, demonstrating its commitment to environmental preservation. The event, held on June 9, 2023, at Accra Girls SHS, was attended by a diverse group of participants, including VGMA Green Award winner Worlasi, sta of Ayawaso North Municipal Assembly,

Agro Ecom, sta of the Vodafone Ghana Foundation, the HR Director of Vodafone Ghana, Hannah Ashiokai Akrong, and the Director for Legal and External A airs at Vodafone Ghana, Preba Greenstreet.

Preba Greenstreet emphasised the company's dedication to environmental stewardship. "As custodians of our planet, we have a solemn duty to protect and preserve it. Vodafone's

nationwide presence provides us with an opportunity to demonstrate our commitment to sustainability and to actively contribute to greening Ghana," she said. Preba further highlighted the company's vision of providing environmental benets wherever it operates. "We aim to plant trees that will o er shade, sustenance, and fruits, contributing to a greener Ghana, cleaner air, beautiful scenery, and

improved mental health," she added.

The event also saw the participation of Accra Girls SHS, represented by Assistant Head of Administration, Gladys Kuetuadu. She revealed that the high school has been actively involved in the Green Ghana initiative since its inception. "We have successfully maintained 90% of our trees," she proudly announced, expressing optimism about the partnership with Vodafone Ghana to expand

the country's green cover.

Ms. Kuetuadu also appealed to the Vodafone Ghana Foundation to assist in refurbishing the school's ageing structures to prevent the need for new construction that could lead to the uprooting of mature trees and the destruction of the school's virgin forest.

Vodafone Ghana's commitment to environmental sustainability is not new. Since 2016, the company has been

actively involved in protecting lands from degradation and exploita tion through its Green Awards initiative which include recognising artistes who promote the green agenda at the Vodafone Ghana Music

Awards, digitalising its top-up process to the

be adopted by any corporate entity in Ghana

the environment by reducing greenhouse ects are part of Vodafone Ghana's strategy to take fullments, manageciently, and reduce

How Simply Irresistible is turning Soho Bar into Accra’s preferred venue for corporate hideout

The Soho Bar, situated in the heart of Marina Mall, Accra, is fast becoming the go-to place for corpo-

rate hideout in Ghana every weekend through A-Town Entertainment's Simply Irresistible

which is so far Ghana's only entertainment event for corporate executives.

soho Bar hosts several workers and top executives who meet to network and party after a long week of work. The event provides 100 percent fun, with attendees mostly dressed in a very smart and sophisticated manner. The Soho Bar is arguably the number one Bar in Ghana currently, providing top-notch services. The Bar serves a variety of Continental dishes and drinks at a ordable prices plus the fun-packed activities on every Friday night.

The partying usually begins at 7pm and ends around 4am every Friday. One of the key features of Simply Irresistible is the opportunity it provides for people to book to have their birthdays celebrated at the Soho Bar with live band performance by the Liv North & The Soho Band and a medley of great tunes from renowned and award-winning Ghanaian disc jockeys. The Liv North & The Soho Band, an all-girl band, is currently one of the best bands in Ghana, always performing much to the delight

of music lovers.

A-Town Entertainment's Founder, Michael Mensah Ayenu, popularly known as DJ Mensah, has reported that more and more people are now booking to celebrate their birthdays during Simply Irresistible at the Soho Bar.

There are usually performances from artistes, magicians, dancers and comedians at the beginning of Simply Irresistible every Friday night before DJ Mensah, DJ Aligation, DJ Juicy, DJ Solo, DJ Baylor, DJ Phantom, and DJ/MC Vyper take over the oor.

Simply Irresistible is a business event designed for metropolitan elites and mature ravers. It is de ned by eternal blissful moments and a profound self-awakening experience with a variety of music, drinks and foods. Simply Irresistible is always organised in a setting of distinction and elegance. Simply Irresistible, which used to be held at the Movenpick Hotel, is absolutely an event worth attending every Friday evening after a long week of work.