Investment Times Newspaper 2023 Edition | Issue 34

FBN Banks turn First Bank

F B N Ba nk in Sier L D RC , G am bi a n ext in lin e d, Ni ge r i a’s o rate n a m e th e Uni ted Af r i c a e r ra L e o n e, N Ba nk D RC dd re ssed a s Sier ra L eo n e , First Ban k D RC Guin e a subsi dph a s e d n am e m ple m en ted with th e p a rent ng he r i t a ge First Ba nk N inking l e ade rnc e the qu a le sulting in o rmi t y a nd the m a rkets c o m m it te d It h a s t a ken n its u n i que o nti nu e s to e s th rough a nt d r ive to n ced i n th e g n iti o ns b e -

The Re p ubli c o f C ô te d ' Ivoi re has a b a ndo n ed its i mpo r t su bstituti on pol i c y a nd o ther ec on om i c m e a su re s, in cl uding the bud ge t a r y a l lo c ati on fo r mo dernizin g lo c al a g r i c u l tu re a nd su ppo r t fo r b oo stin g d om e sti c ag r i c ultu ra l p ro du cti o n I t , h oweve r, b oa sts a round 64 8 p e r c e nt o f a ra bl e a nd ag r icu l tu ral l a nd, which l ar ge ly re m ains u nc u l t ivated

Ar g u a b ly, C ô te d' Ivo i re, lo c ated on the Gulf o f Guin e a (Atl a n tic O c e a n ) , c ou l d su pp o r t

e qu ate funds o n a c qui r ing simpl e a nd eve n s t a r t its own l a r ge - s c a l e-

t r y I t wa s g ath e red th at th e We st Af r ic a n c oun t r y mi g ht spe n d a n e st im ated $100 mi l li o n o n exp o r ts o f Russi a n foo d an d a g r icu l tu ral p ro du c ts th i s s e c o nd qu a r te r o f

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Th e Russi a n Ag r icultu re Min i s t r y's

Ag ro exp o r t C en te r s a id it wa s re ady to exp o r t such p ro du c ts to C ô te d’Ivoi re a s its ma rke t i s p ro m i sin g for exp o r ts, in c ludin g g ra in, o il, p roc e ss e d g ra i n p ro du c ts a nd p re p a red m e at p ro du c ts, a m on g o thers Russi a n exp o r ts o f a g r ibus in e ss p ro du c ts to C ô te d ' Ivoi re m o re th a n d oubl e d to $ 41 6 m illi o n in 2 021 f rom $18 mi l li o n a ye a r e a rli e r,

FBN Banks turn First Bank

...as parent company changes names of subsidiaries

100 African Bank Rankings 2022 released by The Banker Magazine from the stables of Financial Times.

In addition, in Euromoney Market Leaders, an independent global assessment of the leading nancial service providers conducted by Euromoney Institutional Investor Plc., the Bank was crowned: Market Leader in Corporate and Social Responsibility (CSR); Market Leader in Environmental, Social and Governance (ESG); Highly Regarded in Corporate Banking and Digital Solutions and Notable: in SME Banking.

Speaking on the name change, Dr. Adesola Adeduntan, CEO of FirstBank Group, said ‘’ the name change which coincides with FirstBank’s 129th founding anniversary (March 31st, 2023) is indeed a milestone re ective of our resolve to continuously provide the gold standard of excellence and value as we put our customers First.

The new identity of the subsidiaries contributes to an enhanced brand presence. It helps our customers and stakeholders better appreciate the value of the diversi ed products suites, competitive pricing and extensive business networks the FirstBank Group o ers. These include our commitment

Nigeria for 129 years.

With over 750 business locations and over 200,000 Banking Agents spread across 99% of the 774 Local Government Areas in Nigeria, FirstBank provides a comprehensive range of retail and corporate nancial services to serve its over 36 million customers.

The Bank has an international presence with subsidiaries operating in 9 other countries. These subsidiaries are FirstBank (UK) Limited in London and Paris, FirstBank in The Gambia, FirstBank Sierra-Leone, FirstBank in the Republic of Congo, FBNBank in Ghana, FBNBank in Guinea, FBNBank in Senegal as well as a Representative O ce in Beijing, China.

The Bank is at the forefront of promoting digital banking in the country and has issued over 12 million cards, the rst bank to achieve such a milestone.

FirstBank’s cashless transaction drive extends to having more than 12 million people on its USSD Quick Banking service through the nationally renowned *894# Banking code and over 4.5 million people on the FirstMobile platform. It is, by far, the leader in the number of digital transactions per minute across multiple

levels within the organization.

In addition, the Bank’s membership of the UN Women is an a rmation of a deliberate policy that is consistent with UN Women’s Women Empowerment’s Principles - Equal Opportunity, Inclusion, and Nondiscrimination.

Since its establishment in 1894, FirstBank has consistently built relationships with customers focusing on the fundamentals of good corporate governance, strong liquidity, optimised risk management and leadership.

Over the years, the Bank has led the nancing of private investment in infrastructure development in the Nigerian economy by playing key roles in the Federal Government’s privatisation and commercialisation schemes.

With its global reach, FirstBank provides prospective investors wishing to explore the vast business opportunities available in Nigeria an internationally competitive world-class brand and a credible nancial partner.

For six consecutive years (2011 –2016), FirstBank was named “Most Valuable Bank Brand in Nigeria” by the globally renowned The Banker Magazine of the Financial Times Group and “Best Retail Bank in Nigeria” eight times

This is an indication of the Bank’s strong internal capital generation and the corresponding recession of its risks to capitalisation. Fitch also upgraded the Bank’s National Long-Term Ratings to 'A (nga)' from 'BBB (nga)', to re ect its improved creditworthiness relative to that of other issuers in Nigeria. Furthermore, the Top 100 African Bank rankings 2022 released by The Banker Magazine revealed FirstBank’s ranking as number one in Nigeria in terms of Overall Performance, Pro tability, E ciency and Return on Risk.

Other laudable feats in 2022 include FirstBank’s international recognitions on major indices by  Euromoney Market Leaders, an independent global assessment of the leading nancial service providers where FirstBank was crowned:

Market Leader: (tier-1 recognition) in Corporate and Social Responsibility (CSR), Market Leader: (tier -1 recognition) Environmental, Social and Governance (ESG), Highly Regarded: in Corporate Banking and Digital Solutions, Notable: in SME Banking.

Also, in 2022 International Finance Magazine named the Bank “Most Innovative Banking Prod-

uct in Nigeria” and “Best Retail Bank in Nigeria”. FirstBank was also awarded “Best Corporate Banking Western Africa, 2022” and “Best CSR Bank Western Africa, 2022’’ by Global Banking

Other notable awards in FirstBank co ers include: “Best Bank in Nigeria” by Global Finance magazine - fteen times in a row; “Best Private Bank in Nigeria-2021” awarded by Global Finance magazine; “Best Internet Banking Nigeria” and ‘’Best CSR Bank Africa’’ by International Business Magazine. In 2023, FirstBank has received notable awards including “Best Private Bank for Sustainable Investing in Africa 2023” by Global Finance Awards; “Best Sustainable Bank in Nigeria 2023” by International Investors Awards; “Best Bespoke Banking Services in Nigeria 2023” by International Investors Awards; “Best Financial Inclusion Service Provider in Nigeria 2023” by Digital Banker Africa; and “African Bank of the Year” by African Leadership Magazine.

Our vision is ‘To be Africa’s Bank of rst choice’ and our mission is ‘To remain true to our name by providing the best nancial services possible. This commitment is anchored on our core values of EPIC - Entrepreneurship, Professionalism, Innovation and Customer-Centricity. Our strategic ambition is ‘To deliver accelerated growth in pro tability through customer-led innovation and disciplined execution and our brand promise is always to deliver the ultimate “gold standard” of value and excellence to position You First in every respect.

DDEP: banks loans to businesses, households to fall significantly – Fitch Solutions

Fitch Solutions has indicated that the banking sector loans will fall considerably in 2023, whilst deposit growth will decline marginally.

It said Ghana’s client loan growth will ease from 30.2% year-on-year in 2022 to 18.0% in 2023.  This is a result of the challenging macroeconomic backdrop, as banks remain uncertain about the possible fallout from the domestic debt restructuring, as well as base e ects from very strong loan growth in 2022.

“Whilst our nominal client loans growth forecast will still be in double digits in 2023, skewed by still elevated in ation, our real client loan growth forecast will be much weaker at -7.7% by year-end”, it stated.

“On top of in ation, further interest rate hikes, a weakening currency and a slowdown in eco-

nomic momentum will continue to act as headwinds to loans growth in 2023.

On the liabilities side, Fitch Solutions forecasts deposit growth of 30.0% year-on-year in 2023, down marginally from 30.5% in 2022.

A key driver of this strong growth, it said, is the expected depreciation of the cedi in 2023 which will in ate the value of deposits in foreign currency, which account for 28.4% of total deposits, as of December 2022.

Another factor is higher interest rates – the Bank of Ghana (BoG) has hiked the policy rate by a cumulative 1,450 basis points since late 2021.

However, it added that growth in deposits will be held back by the worsening economic environment, as locals will likely have to tap into their savings to compensate for the loss in income.

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

Enterprise Group appoints Keli Gadzekpo as Group Chairman

had over 30 years of experience in accounting and nance and had been with the Enterprise Group since 2011.

Mr. Trefgarne welcomed the changes expressing con dence in Mr. Gadzekpo and Mr. Larbi-Tieku’s abilities to lead the company.

Mr. Trefgarne remarked that “it is a great pleasure that my friend and colleague, Keli Gadzekpo, is taking the Chair in my place. Shareholders can be con dent their company’s Board will be in good hands”, it said.

Mr. Gadzekpo also said “I am also delighted that my association with this great company has not ended and

look forward with excitement as I take up the mantle of Group Board Chairman”, i said.

Mr Larbi-Tieku similarly expressed humility and optimism about serving as Group CEO and creating value for all stakeholders.

“I accept with humility to serve as Group CEO of this great company”.

“I am aware of the enormous task ahead, especially during the current economic challenges this role must deal with”, he added.

Enterprise Group PLC is one of the most active stocks on the GSE.

Côte d'Ivoire abandons Import Substitution Policy, goes for Russian fish and ice-cream

million and 400 tonnes of ice cream worth $0.5 million.

Statistics show that imports from the Côte d'Ivoire are far higher and grew to $237.5 million in 2021 from $223.7 million in 2020, although by the volume they dropped to 72,600 tonnes from 74,500 tonnes. These imports in-

$8.5 million.

“The decrease in Russian imports by volume was due to the reduction of purchases of cocoa beans and cocoa powder. At the same time, cocoa paste imports showed signi cant growth: 27% by volume and 37.2% by value,” the report said.

creasing job markets posed a huge issue as unemployment rates grew.

With rising unemployment, especially among the youth, experts suggested the government engage in economic diversi cation, focus on support for improving local production. There-

food security.

With an estimated population of 29 million, the economy of Côte d'Ivoire has grown faster than that of most other African countries since independence. One possible reason for this might be taxes on exported agriculture. It is the world's largest exporter of

lowing South Africa, Nigeria, and Angola).

By geographical description, Côte d'Ivoire is a country in western sub-Saharan Africa. It borders Liberia and Guinea in the west, Mali and Burkina Faso in the north, Ghana in the east, and the Gulf of Guinea (Atlantic Ocean).

New taxes expected to rake in GH¢4 billion annually

By Eugene Davies

Ghana’s lawmakers have approved and passed three critical bills, which is projected to generate a revenue of GH¢4 billion annually as part of domestic revenue mobilization.

The tax bills which were passed late on Friday before the adjournment of parliament in the wee hours of Saturday, sparked resistance from the minority in parliament but government maintained the bills were needed to aid the government’s quest to facilitate the Board Approval for the $3 billion International Monetary Fund (IMF) Programme sta -level agreement.

The bills include Growth and Sustainability Bill,2022, Excise Duty Amendment Bill,2022, Income Tax Amendment (2) Bill,2022.

The Ghana Revenue Authority Bill 2022 was also passed alongside.

The new taxes will apply to some incomes, companies, cigarettes and drinks.

One of the bills seeks to raise GHc2.2bn, the Growth and Sustainability Bill annually, the Excise Duty Amendment bill,2022 and the scal impact of the bill was to raise monies as a result of taxation on tobacco and other harmful items.

The Excise Duty bill was going to raise over Ghc455m to support the 2023 budget, and the scal impact for the Income tax was close to Ghc1.3bn.

The international and domestic

bond markets are shut for the nancing of government programmes, forcing the government to rely on Treasury Bills and concessional loans as the primary sources of nancing for the 2023 scal year.

Government in justifying the introduction of the taxes said they are critical for recovery from the current economic crisis.

Ghana is battling its way out of a generational economic crisis by hiking interest rates at record speeds, cutting spending, and restructuring its debt as a condition to obtain support approval from the IMF's Executive Board.

Angela List is Africa’s ‘Most Outstanding Woman in Mining

Mining giants, Adamus Resources Mining Company Limited (Ghana) CEO, Angela List emerged as ‘Africa’s Most Outstanding Woman in Mining’ in the recently held awards ceremony, Africa Outstanding Women Awards in Cote d’Ivoire. Her outstanding works in the mining sector in the year under review attracted the attention of the organisers board-ASKOF Productions for recognition. And for her outstanding works, she received a citation and a beautiful plaque.

The versatile CEO in a post-presentation interview said, “Indeed, l am humbled by this recognition, it goes to show that people and organisations like you monitor what we do.

“It will certainly urge us to push harder. I dedicate this award to my hardworking team, they have been amaz-

ing. This is for all of us.”

CEO of ASKOF Productions Limited, Afua O. Aduonum said, “We are charity driven biased, our primary objective is to recognize and reward organizations and individuals who are charitable by impacting their communities positively.

“The board combed through and saw your mining company as the deserving candidate for the award. We want to urge you to continue with your charity work.

“If companies around will follow your shining example, we will have better communities, and our joy would be completed as a body that rewards companies and individuals a ecting social change in various communities.”

Adamus Resources Mining Company (Ghana) is a multiple award-winning company that delivers above-forecast gold production.

Stanchart appoints Executive Director

Standard Chartered Bank

Ghana PLC has appointed Albert Larweh Asante as an Executive Director for the bank, e ective March 21, 2023.

Mr Asante is currently the Chief Financial O cer of Standard Chartered Bank Ghana PLC.

He joined Standard Chartered Bank Ghana Ltd in 2006 and has held various senior roles including Head, Wholesale Banking Business Finance, Ghana, Financial Controller and Chief Financial O cer for Standard Chartered Bank, Angola S.A. He also served as an Executive Director of the Bank while in Angola. Prior to his appointment as Chief Financial O cer for Standard Chartered Bank Ghana PLC, he was the Cluster

Head of Finance for Corporate, Commercial & Institutional Banking, West Africa with oversight responsibility for Nigeria, Ghana, Cameroon, Cote d’Ivoire, Gambia, and Sierra Leone.

Albert is a Fellow of the Institute of Chartered Accountants, Ghana; a CFA Charterholder, holds an MBA from the University of Warwick, United Kingdom, and a Bachelor of Science in Administration (Accounting option) from the University of Ghana, Legon.

A release issued by the bank said he brings a wealth of experience in Strategy, Financial Planning and Analysis, Leadership and Enterprise Risk Managemen

Ghana Gas hosts an Ivorian delegation on Bi-Directional Gas Pipeline Project

The Ghana Gas company has met with an Ivorian delegation on the directional Gas pipeline project as part of a Strategic Partnership Agreement (SPA) signed on the 17th October, 2017 by the Heads of State of Ghana and Cote D’Ivoire.

The two countries have identied the need to have a bi-directional pipeline to supply gas to both countries depend-

ing on their demand pro le. This is born out of the friendship, fraternity and solidarity sustained through history, geographical positioning and cultural tolerance.

In view of this, there was a visit by the Ivorian delegation to Ghana on 14th March 2023 in consonance with the aforementioned project, The Ivorian delegation was led by Mr. Noumory Sidibe, Director

General of CI-Energies, Dr. Ben Asante, Chief Executive O cer of Ghana Gas represented the Government of Ghana. National Gas Company towards the successful completion of the gas pipeline project.

“Gas will be the growth pole for industrialization in our two countries and beyond,” he a rmed.

According to Dr. Ben Asante, the gas supplied will not only be used for power generation but also as feedstock for fertilizer and for industrialization purposes for the bene t of both Ghana and Cote d’Ivoire. With both countries having discovered oil and gas in commercial quantities, there is a need to have a bi-directional gas pipeline

connecting the load centers of these countries to supply gas from Ghana to Cote D’Ivoire and vice versa, depending on the demand. After the meeting at Ghana Gas conference room, the two delegation paid a courtesy call to the Ministry of Energy and they were received by the Deputy Minister for Energy, Andrew Egyapa Mercer, on behalf of the Minister for Energy.

GH¢5.5bn approved by Parliament not only for Blackshield customers – SEC

The Securities and Exchange Commission (SEC) has rejected claims that the GH¢5.5 billion approved by Parliament in 2021 to settle owed customers of defunct fund management companies is only for Defunct Gold Coast Management, now Blackshield customers.

According to the SEC, the approved funds are for all investors in the 47 fund management companies that were closed down by the regulator. The clari cation follows com-

ments from some Blackshield Fund Management clients who suggested that the funds should only be distributed to fund investors.

“The update received by the SEC from the implementing agencies of the Bailout is that so far, GH¢4.6 billion has been allocated as follows:

GH¢3.1 billion to Amalgamated Fund Tier 1 payments and GH¢1.45 billion assigned to Amalgamated Fund Tier 2 payments.”

“This disbursement includes

the partial bailout program which entailed the payment of a sum of up to GH¢50,000 to clients of Blackshield/Gold Coast and other companies who had not received Winding up orders from the Court by October 2020 but whose claims had been validated. The total amount paid to Blackshield clients in the partial bailout is GH¢1.34 billion covering a total of 73,541 investors. Out of this amount, a total amount of

GH¢757,539,141 has been used to fully settle 61,734 customers of Blackshield”, a release from the regulator clari ed.

According to the SEC statement, all investors with validated claims have been contacted by Amalgamated Fund and GCB Capital Limited for further action.

The SEC also assured Blackshield Fund Management customers of its ongoing compliance.

The SEC revoked the licenses

of some 53 fund management companies, which according to them was to protect the integrity of the securities market and investors.

The disgruntled customers have embarked on a series of protests to push for the government’s intervention in retrieving their funds from BlackShield Fund Management after the SEC announced a bailout package for clients of the collapsed companies.

Pursuing passion: Prince Acquaye 's law journey

When Prince Acquaye '13 joined Ashesi to study Management Information Systems, he believed it was time to give up on his childhood goal of becoming a lawyer. In his second year, however, he learned about ENS Africa's Ghana O ce, then known as Oxford and Beaumont Solicitors, thanks to another Ashesi student who had interned with the law rm. Prince also applied for an internship with the rm and joined in his third year at Ashesi as a non-legal intern. The experience reignited his desire to pursue a career in law.

After graduating from Ashesi, Prince spent nearly eight years at ENS Africa. Starting as a Paralegal, he eventually became an International Associate, earning a Barrister-at-Law certi cate from the Nigeria School of Law and a Qualifying Certi cate in Law from the Ghana Law School.

"My years as a paralegal were exciting, challenging and fun," says Prince. "For those who have watched the TV series 'Suits', I proudly felt like the Rachel Zane of my team and took every opportunity to capture memories with my team members."

As an international lawyer, Prince developed specialisations in corporate governance, intellectual property, immigration, general corporate com-

mercial, and mergers and acquisitions.

His work covered a wide range of clients, including Google, International Finance Corporation (IFC), Coca–Cola Bottling Company of Ghana Limited, Emirates Airlines, Mastercard, and Zen Petroleum.

"I share with younger people that I speak to that some opportunities come on a platter, but many don't," says Prince. "Dreams require tough work. I had pictured myself as a lawyer for a long time and had to navigate through a lot of work to get here. There were many bottlenecks, but I chose to persevere. I am glad to be here today because I do not have to ask myself 'what if?' anymore."

Helping students at Ashesi understand the legal profession

Re ecting on his experiences, Prince believes many young people may believe they cannot pursue a career in law because they are not on a conventional path to it.

But as he did, several Ashesi alumni have pursued careers in law. Prince is now working to demystify the legal profession for other students at Ashesi. In 2021, he joined the Business Administration department as an Adjunct, teaching Business Law, and Company and Commercial Law. Work-

ing with other Business Law faculty, he has helped strengthen the teaching of law at Ashesi and hopes to see more students take the classes.

In December 2022, Prince helped organise Ashesi's rst Moot Court session - a simulation of real court proceedings. Students had to argue whether bail should be granted to a person arrested for possession of narcotics pending a trial. As part of the debate, the class also got the opportunity to educate the broader audience about Ghana's drug laws and the repercussions for those who broke them; a secondary goal for the faculty in organising the session. Her Ladyship Justice Rosemary Baah Tosu, a High Court Judge, presided over the session.

"It was an exciting experience for me," shared Emmanuel Nti '23, who took the class and participated in the debate. "I always had an interest in nance, but I am beginning to recognise how I can bring this interest into a career in law."

Building a new legal rm in Ghana

Today, Prince serves as a Managing Partner at Corporate and Allied Attorneys, a rm he established in 2022. He hopes that he can build a legal rm that is recognised across Africa and that inspires many others.

"I draw a lot from the lessons of my former boss Elikem Kuenyehia and his journey of starting and growing Oxford and Beaumont," says Prince.

"Elikem started a young rm that became recognised among some of Ghana's biggest names, so I know it's possible. I hope Corporate and Allied Attorneys can grow into one of Ghana's leading legal rms, harnessing technology."

"For any young person who wants to become a lawyer or a professional in any eld, go forward with that dream," adds Prince. "It may be di cult, but follow it. Write that exam. Take that interview. You do not want to look back, wondering what could have been. Every young person should be able to take some career risks with their lives. I hope to serve as a good example of risk-taking for those needing one."

We are committed to deepening collaborations with DBG to achieve its mandate—CBG MD

The Managing Director of Consolidated Bank Ghana Ltd. (CBG), Daniel Wilson Addo, has stated that his out t is committed to deepening collaborations with Development Bank Ghana (DBG) to facilitate and strengthen long-term credit ow to drive economic growth among Ghanaian businesses.

Commenting on the importance of the partnership, Mr. Addo said, "DBG has a big audacious goal to address very key challenges within the business community. We all know the importance of SME support to Ghana's economy, and CBG is delighted to be associated with DBG because of our commitment to see SMEs thrive in Ghana."

"To add to our tall list of SME support activities, we partnered with DBG to train 160 SMEs on the Foundational Financial Literacy Course as part of an SME Financial Empowerment program.

We at CBG look forward to deepening our relationship with DBG to on-lend to Ghanaian businesses in targeted industries such as agribusiness, manufacturing, ICT, and high-value services as the catalytic sectors of the economy identi ed by DBG", he noted.

In his keynote address at the DBG-University of Ghana Business School (UGBS) Development Finance Series MoU Signing and Roundtable Meeting held at the University of Ghana,

Mr. Addo also encouraged the Development Bank of Ghana (DBG) to stay focused as an enabler for businesses in Ghana and as a long-term capital provider in the market.

According to him, though, DBG is not required to maximise pro t, the institution must work to remain nancially sustainable with less reliance on capital injection from the government and ensure funds advanced to the Participating Financial Institutions are repaid when due in order to help DBG recycle capital.

“By the very nature of National Development Banks (NDBs), they are not required to be pro t maximisers. However, to e ec-

tively discharge their mandates and limit the recourse to scarce public funds, they must be nancially sustainable. In a 2021 research report, Fitch estimated that one-third of 84 African NDBs posted losses in 2019 and the trend continues”.

“Whilst NDBs are not pro t-driven, consistently posting losses raises the need for continuous capital injection from a government that already has very little scal space to operate. This then opens the institution to government interference. To counteract this, DBG will have to manage its funding costs, operate at high levels of e ciency, and as much as possible employ funding structures that mini-

mize credit losses”, he advised. He added that it was also necessary for CBG to carefully identify the sectors where it could make the most impact and focus its lending and advocacy e orts appropriately. Since CBG’s inception, the bank has granted over GHS 1.5 billion to the SME sector, provided an SME Center dedicated for advisory services, introduced a program dubbed the CBG Adesua Series, partnered with Ghana Enterprises Agency (GEA) to disburse concessionary loans totaling GHS 154 billion to 34,000 SMEs; German International Cooperation (GIZ) to train 500 artisans; and GIRSAL in supporting the agricultural sector.

Absa Group announces net zero targets as part of broader sustainable finance goal

sure limits to the oil sector are expected to peak at 1.41% of Group loans and advances to customers (including o -balance sheet items) in 2023 (2022: 1.03%). Thereafter, we target a signi cant reduction to 0.46% in 2030, 0.22% in 2040 and 0.04% in 2050. As we consider gas a transition fuel, the trajectory of our lending targets di ers from oil and coal. Our gas sector Group loans and advances to customers (including o -balance sheet items) are expected to exceed oil by 2027. We expect our total credit exposure limits to the gas sector to increase to 0.60% in 2023 (2022: 0.51%) and to peak at 0.83% in 2030. Thereafter, we target a material reduction to 0.52% in 2040 and 0.32% by 2050.

transactions over the course of 2023 and beyond. This R10.4bn transaction was the largest sustainability-linked transaction in the sector in 2022 and incentivised Harmony Gold Mining Company Limited to reduce its overall carbon footprint by setting targets for greenhouse gas emissions, renewable energy consumption, and water usage.

Absa Group, Africa’s largest funder of renewables, announced today its long-term ambition to reach Net Zero state by 2050 for scope 1, 2, and 3 emissions. Supporting a transition to a low carbon economy is underpinned by the Group’s aspirations to be an active force for good in everything we do, prioritising business activities that have the most positive environmental, social, and economic impact, while mitigating negative impacts.

“While we recognise Africa’s particular vulnerability to climate change, our approach to Net Zero also takes cognisance of the development needs of Africa’s people,” said Punki Modise, Absa Group Chief Strategy and Sustainability Ofcer.

“Our Net Zero declaration underpins our belief in and support for a Just Transition. The transition to a resilient and sustainable economy must be inclusive and equitable for communities, investors, and industries and leave no one behind. We are committed to mobilising the resources necessary for supporting our clients’ energy transition, thereby reducing their carbon emissions and, ultimately, those of the countries in which we operate”, she said. Our commitment to entrench environmental, social and governance (ESG) principles throughout our business underpins this support, as we believe that ESG is vital for delivering real long-term value and our purpose of empowering Africa’s

tomorrow, together …one story at a time.

Operational Emissions: Absa Group recognises its contribution to a sustainable future and the extent to which its business needs to re ect that in the operating choices that it makes. As such, the Group continues its journey towards a group-wide target to reduce operational emissions by 51.0% from 2018 levels by 2030. The Group is on track with this target and has achieved an overall reduction of 21.3% to date. The Group commits to setting near and long-term scope 1 and 2 targets and having these targets validated by the Science-based Targets initiative (SBTi).

Sectoral Targets on Financed Emissions: Coal: We support diversifying electricity and energy supply, and we strive for a balanced energy mix, supporting clients through the energy transition. Funding of the sector will be in line with the Group’s Coal Financing Standard, which provides a framework for addressing Absa Group’s sustainability risks and disclosures. Coal credit exposure as a percentage of the Group loans and advances to customers (including o -balance sheet items) was 0.04% in 2022. We expect to reduce the coal credit exposure limits from 0.20% in 2023 (2022: 0.20%) to 0.11% in 2030, with further reductions to 0.06% in 2040 and 0.03% in 2050.

Oil and Gas: Our credit expo-

Wind and Solar Energy: Absa Group celebrates being the rst bank in South Africa to announce its plan to mobilise a cumulative R100 billion of sustainable nance by the end of 2025. Our Relationship Banking unit in South Africa aims to nance R2.5bn of embedded renewable power by 2025. The Group expects to grow its renewable energy lending at a compound annual growth rate of 26% by 2025, doubling the lending commitment over the period.

In addition, the Group, through its Vehicle and Asset Finance division, commits to support the adoption of New Energy Vehicles (NEV), taking into account the charging and other infrastructure needs for both in-home and on-the-road usage.

Our Progress to date in Financing the Low-Carbon Energy Transition: Absa Group has made signi cant strides in delivering against its sustainability agenda and cemented its position as Africa’s leading bank in renewable energy nancing. The Group issued its rst green bond (Africa’s rst certi ed green loan), published its Sustainable Financing Issuance Framework, and closed a $400 million sustainability-linked term loan facility.

The Group invested in the African Rainbow Energy platform with an initial cash investment of R500 million and by transferring R5 billion of its existing renewable energy assets. This investment aligns with the Group's commitment to renewable energy and the green economy, and it brings expertise in renewable energynancing, thus creating South Africa's largest, black-owned, renewable energy fund. Additionally, the Group has delivered a landmark transaction with Harmony Gold Mining Company Limited which it believes will be a blueprint for other sustainable nance

At the end of 2022, Absa Relationship Banking in South Africa had nanced over R1bn in SME embedded renewable power generation capacity. It also acted as sole sustainability coordinator in the rst sustainability-linked transaction in the paper and pulp industry for Sappi and enabled the evolution of Teraco's energy usage towards renewable sources by arranging a R1.5 billion green loan. Absa Group endeavours to ensure that its nancing does not harm vulnerable communities and that they have access to a ordable renewable energy. Consequently, the Group applies enhanced due diligence when considering the environmental and social impacts of projects, ensuring that it adheres to best practices.

Reporting and Disclosures: Absa Group aims to lead the nancial services sector in moving away from a reactive and compliance-based approach to sustainable nancing, reporting, and disclosures and instead consolidating a strategy-driven approach to unlocking the social impact, climate resilience, and enterprise shared-value opportunities presented by our sustainability and Net Zero commitments.

As a founding signatory to the UN Environment Programme Finance Initiative’s Principles for Responsible Banking (PRB), as well as a signatory to the UN Global Compact, Absa’s Net Zero strategy is aligned with the UN Sustainable Development Goals (SDGs) and the Paris Climate Agreement. The Group plans to maintain its sustainability reporting and disclosures in addition to the prescribed King IV Integrated Report, while ensuring that it incorporates the latest standards and best practices as the need for greater transparency grows.

Currently, the following reports are provided:

1.Environmental Social and Governance

2.Task Force on Climate-Related Financial Disclosures

3.Principles for Responsible Banking

Absa Group Environmental,

Social and Governance (ESG): “In the past year, we’ve made signi cant progress in the area of sustainability, which is an integral part of our commitment to being an active force for good in everything we do. This commitment has also seen us accelerating the embedment of environment, social and governance across our business,” said Absa Group CEO Arrie Rautenbach. Due to the severe load shedding situation in South Africa, our Group has taken the initiative to assist our clients during this trying time. We are working closely with them to discover inventive approaches that can reduce energy usage, improve productivity, and support the reduction of greenhouse gas emission. Our objective is to aid our clients in reducing the impact of load shedding on their day-to-day activities and operations while simultaneously aiding the worldwide mission of mitigating climate change.

We are pleased with the latest tax incentives introduced by South African Minister of Finance Enoch Godongwana, which promote the adoption of renewable energy sources by both households and businesses. This has the potential to increase renewable energy production and alleviate the energy crisis. We support a Just Transition that addresses Africa’s energy poverty, and we have prioritised the promotion of sustainable and inclusive economic growth, employment, and decent work for all. Several of the countries in which we operate rely on oil and gas sectors for their socioeconomic development. Our objective, therefore, is to aid customers and communities in achieving sustainable and inclusive growth, and leaving no one behind, by providing services that facilitate the transition and adaptation process, promoting an ethical and inclusive supply chain, and ensuring that stakeholders have a say in our climate change decisions. Embarking on a journey to achieve a Net Zero state by 2050 is an important step towards supporting a Just Transition and a sustainable future.

Vodafone expands reach, offers nationwide connectivity

Vodafone Ghana has announced an expansion of its national roaming service partnership with MTN, to improve connectivity for customers throughout the country. The initiative, which initially began with a pilot program last year, has been expanded to cover the entire nation.

The initiative is a result of an e ort by the government to facilitate universal access to telecommunications services and accelerate the country’s digital transformation. By implementing a full national roaming regime among all operators, the government hopes to expand coverage and strengthen the telecommunications industry. National roaming allows a subscriber’s

to connect

automatically to an alterna-

tive telecom network when their primary network is non-existent or weak. The service not only extends the coverage of network operators’ retail voice and SMS services but also enables mobile users to continue using their phone numbers and data services within another jurisdiction.

Vodafone Ghana CEO Patricia Obo-Nai expressed enthusiasm for the initiative:

“National roaming o ers customers a greater choice of network providers. In 2022, we successfully collaborated with the government, the regulator, and MTN Ghana to pilot the national roaming service in the Volta

Region,” she said. “We are excited that this partnership has extended to other regions.”

Patricia added that the initiative would enable Vodafone Ghana customers to stay connected to its o erings no matter their location in Ghana. “We o er a wide variety of products and services to consumers and businesses. With this initiative, we are glad that all communities in Ghana can bene t from our o ers,” she said. By fostering a more connected and digitally integrated nation, Vodafone Ghana is collaborating with the government to improve communication, access to information, and business opportunities for all Ghanaians.

CIDAN INVESTMENTS LIMITED

WEEKLY MARKET REVIEW FOR WEEK ENDING

March 28, 2023

Bridge gap between unions and boards for better corporate governance - IoD-Gh CEO

The Chief Executive O cer of the Institute of Directors-Ghana (IoD-Gh), Mr. Clement Wiredu, has urged organizations to take deliberate steps towards bridging the gap between the Board of Directors (BoD) and worker unions.

Highlighting the relevance of corporate governance to businesses on the March 21, 2023 edition of Sunny FM’s Business Magazine Show, CEO of the professional body, underscored

the importance of unions to business growth and good corporate governance, calling on Ghanaian businesses to be more intentional about their interactions with worker unions.

“One thing that people miss increasingly in governance in the corporate world is the role of the Union. And I've seen many people talk about governance, and talk about the board, talk about the CEO but even when the organization has a union, they’re not

mentioned. And when you go there, they’re not even on the Management Team. While we start to de ne and get into good corporate governance, we must evolve around looking at unions as part of management”, he said. He added that recognizing the role of Unions plays a crucial role in the success of the company. “If there's a union in that organization, then one wants to see that they are part of the governance of the organization

and the governance is not just reporting to them, but they are aware of the direction the organization is going and the challenges”, he emphasized. Speaking on the same program, a Fellow of the IoD-Gh, and Managing Consultant at The Family O ce Africa, Mr. Theodore Albright, called on board members to build awareness and knowledge about the organization on whose board they serve.

“At the very least, you should understand the operations because you're going to give birth

to a strategy. Remember, you're the custodian of the company, you have a duciary responsibility to the company and you're the custodian of the strategy. How can you couch a strategy when you don't understand the industry?”, he stressed. The Institute of Directors-Ghana is a professional body committed to the practice of e ective Corporate Directorship to champion director professionalism and development through good corporate governance.

EDITOR: