Investment Times Magazine | Issue 2 by Investment Times

ISSUE 2

FDI as stimulus for economic recovery

Russia-African relations in the context of geopolitical changes

JULY - AUGUST EDITION

ISSUE 2 JULY- AUG. 22

EDITION

Will Ghana attract 2m tourists by 2024?

GHANA’S IMF BAILOUT Negotiations, Expectations and Outcome

FDI AS A STIMULUS FOR ECONOMIC RECOVERY IN GHANA

Negotiations, Expectations and Outcome

Table Of Content Message From Editor

Cover Stories

African Business

Comment & Analysis

Agribusiness

Local News

Human Resource Desk

Lifestyle

Tourism

Banking & Finance

Editorial Private sector must own the AfCFTA! Africa’s social and economic transformation agenda has been significantly boosted with the take-off of the single continental market.

Government and state actors in the trade and export sectors have lined up robust and measured interventions to build the competitiveness of the business community to take advantage of the enormous opportunities it has to offer. It is now up to the local business community to understand the market, the requirements and what it would take to enter these markets. There are certain sectors that have already seen the light. For example, businesses that are into high value manufacturing have already starting setting up business hubs in other parts of Africa. These businesses are expected to lead the path on this sustainable economic journey toward continental integration whilst dragging along the bulk of Ghana’s private sector businesses, specifically the micro, small and medium enterprises.

and services, and it is up to traders themselves to drive the trade. “AfCFTA has given us the opportunity to thrive in other markets, find those markets, find business partners and explore means of staying in those markets. AfCFTA is only reducing the barriers that would hitherto disable you from doing so,” a trade expert Dode Seidu, aptly reiterated in his recent engagement with the business community. The AfCFTA is not just a traditional trade agreement but a reliable chance for Africans to lift ourselves and for that matter we have to make sure that opportunities of the market are well explored to the betterment of the continent. Managing Editor Benson Afful

The Africa Continental Free Trade Area was established to create structures that would enable cost-efficient free movement of goods

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Ghana’s IMF bailout Negotiations , expectations and outcome By Emmanuel Amoah-Darkwah

P President residentNana NanaAkufo-Addo Akufo-Addoearlier earlierthis thisdirected directedthe theFnance FnanceMinister, Minister,Ken KenOfori-Atta Ofori-Attatotocomcommence engagement with the International Monetary Fund (IMF) to address primarily the current Balance of Payment (BoP) challenges of the country. The decision to engage the IMF was followed by fund’s team visit to Accra from 6th – 13th Julyled by Carlo Sdralevich, mission chief for Ghana, to begin initial discussions with the Ghanaian authorities for a possible IMF-supported program. Government has reiterated its commitment to negotiate a good deal as the country faces two global shocks --Covid 19 pandemic and Russ ia-Ukraine War-- which have exacerbated the structural domestic economic bottlenecks. It is estimated that Ghana lost GH¢ 13.1 billion of revenue and had to increase expenditure by GH¢ 14.2 billion with combined fiscal impact of GH¢ 26 billion, representing 6.8percent of Gross Domestic Product (GDP), according to a statement after a cabinet retreat in March this year, Public debt to GDP ratio has increased considerably from 54.2percent in 2017 to 61.2percent in 2019 to 74.4percent in 2020 and further to 76.6percent at the end of 2021. Provisional data from the Bank of Ghana indicated that, public debt stock has reached GH¢ 387.9 billion, representing 77.2percent of GDP at the end of April, 2022. Overall balance of payment deficit has worsened to US$934.5 million in the first quarter of 2022, compared with US$ 429.9 million in the same period last year. Inflation hit 18-year high at 27.6percent in May this year while Monetary Policy Rate (MPR) was increased by 200 basis point to 19percent to tame inflationary pressures. To address these challenges, the Akufo-Addo-led administration announced a raft of measures in March to contain the ballooning expenditure while ensuring tax compliance. This latest request comes at the back of IMF’s approval of the disbursement of US$ 1 billion drawn under the Rapid Credit Facility (RCF) in April this year. The disbursement was to aid Ghana address the fiscal and balance of payment challenges, improve confidence and catalyse support from other development partners. RCF is available to

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Ghana’s IMF bailout

A NEW THIN KING

low-income countries and carries a zero-interest rate. RCF has a grace period of 5½ years and a final maturity of 10 years. IMF’s Article IV consultations with Ghana in July, 2021 posited that, the ongoing recovery from the pandemic is threatened by possible new waves and rising debt vulnerabilities, including large financing needs that leave government exposed to rollover and solvency risks. This has been heightened by the crisis in Ukraine which has led to supply chain disruptions, skyrocketing food prices and limited access to the international capital market. COMPARATIVE ANALYSIS It is important to highlight how the Fund has used Special Drawing Rights (SDR) to address the balance of payment challenges in member states. SDR is an international reserve asset created by the IMF to supplement the official reserves of its member countries-currently 190. It is a potential claim on the freely usable currencies of IMF members. As such, SDRs can provide a country with liquidity. What is Ghana’s current Special Drawing Rights (SDR) position at the Fund? According to the IMF, Ghana’s SDR as at 7th July, 2022 stood at 671.34 million with a quota of 738.0 million. As Ghana commences negotiations with the Fund, what could possibly be the value of the financial assistance from the IMF? Government has hinted of its expectation of getting between US$ 2- 3billion in BoP support. These are early days of the negotiations as Ghana is at the data sharing stage with the Fund for a possible stabilization program. HOW HAS THE IMF RESOLVED BOP CHALLENGES IN OTHER COUNTRIES IN RECENT TIMES? On 2nd April, 2021, the IMF Board approved

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SDR 1.655 billion (about US$2.34 billion) Extended Credit Facility (ECF) and Extended Fund Facility (EFF) arrangements for Kenya. The three-year financing package will support the next phase of the authorities’ COVID-19 response and their plan to reduce debt vulnerabilities while safeguarding resources to protect vulnerable groups. Kenya currently has SDR of 489.08 million with a quota of 542.8 million. Similar to the aforementioned, on 12th December, 2016, the IMF Executive Board approved a three-year ECF/EFF arrangements with a total access of SDR 650.4 million (about US$896.7 million) which was extended by one year on December 6, 2019 for Cote d’Ivoire. It was augmented by about US$278.2 million. Cote d’Ivoire currently has SDR of 1634.95 million with a quota of 650.4 million.

icies, bu icies, icies, icies, bu b charters charters charte chart More so, on 7th June, 2021, IMF Board approved SDR 453 million (about US$650 key The The The key ke k million or CFAF 350 billion) Stand-by The parency parenc paren arrangement and arrangement under the parency effectiv effectiv effecti effec Standby Credit Facility for and comCorporate Governance (CG) is essential for Corporate Corporate Corporate Governance Governance Governance (CG) (CG) (CG) isisSenegal essential isessential essential for for for such as such such asa pleted the third review under the Policy such the survival and sustenance of any corporate the the the survival survival survival and and and sustenance sustenance sustenance ofofof any any any corporate corporate corporate set up set set set up up ull Coordination Instrument. The 18-month organisation and its positive impacts in the organisation organisation organisation and and and itsits its positive positive positive impacts impacts impacts ininin the the the excesse excess exces arrangements together with the Policy Coor- excesse long run, far outweigh whatever could be long long long run, run, run, far far far outweigh outweigh outweigh whatever whatever whatever could could could be be be among among among amon dination Instrument will provide a policy regarded as when properly regarded regarded regarded asasasits itsits itsdownside, downside, downside, downside, when when when properly properly properly anchor for the next phase of the authorities’ implemented. implemented. implemented. implemented. Having Having Havin COVID-19 response and support a strong Having more more morett and job-rich recovery. At present, Senegal more There could be many views on the definition There There There could could could be be be many many many views views views on on on the the the definition definition definition althoug althou altho has SDR of 884.89 million with a quota of althoug of CG but according to (John Kyriazoglou, ofofof CG CG CG but but but according according according tototo (John (John (John Kyriazoglou, Kyriazoglou, Kyriazoglou, cies and cies cies cies and an a 323.6 million. governance, 2020), Corporate 2020), 2020), 2020), Corporate Corporate Corporate governance, governance, governance,in ininingeneral general general general outlay, outlay, outlay outla terms, terms, terms, terms,refers refers refers refersto tototothe the the thebody body body bodyof ofofofguidelines, guidelines, guidelines, guidelines, major major majo It is safe to predict that, Ghana could secure major systems, policies, procedures and practices systems, systems, systems, policies, policies, policies, procedures procedures procedures and and and practices practices practices many, ii many, many, many an ECF or EFF program and from the Fund by private corporations by by bywhich which which which private private private corporations corporations corporations and and andpublic public public public icicic exerc ic exerc exe ex because ofare the broadand macroeconomorganisations structured organisations organisations organisations are are arecurrent structured structured structured and and andgovgovgovgovteousne teousne teousn teous ic challenges and more importantly debt erned(2). For most institutions of public intererned(2). erned(2). erned(2). For For For most most most institutions institutions institutions ofofof public public public interinterinterother in other other other in vulnerabilities. The ECF is a lending arrangeest, these elements of CG are clearly docuest, est, est, these these these elements elements elements ofofof CG CG CG are are are clearly clearly clearly docudocudocuowners owners owner owne ment that provides sustained program mented, and in many cases, huge sum of mented, mented, mented, and and and ininin many many many cases, cases, cases, huge huge huge sum sum sum ofofof th stand stand stand th engagement over the medium to long term stand money is spent in institutionalizing them, but money money money isisspent isspent spent ininin institutionalizing institutionalizing institutionalizing them, them, them, but but but for thei for for for thei the th inreality case ofground protracted balance of payments the reality on shows that good CG the the the reality reality on on on ground ground ground shows shows shows that that that good good good CG CG CG cle is to cle cle isisis to problems. On the other hand, the EFF was cle practices are Among others, practices practices practices are are arefar-fetched. far-fetched. far-fetched. far-fetched. Among Among Among others, others, others, have co have have have co established to provide assistance to counthese elements include, but not limited to, these these these elements elements elements include, include, include, but but but not not not limited limited limited to, to, to, behavio behavio behav beha tries: (i) experiencing serious payments corporate financial policies, information corporate corporate corporatefinancial financial financialpolicies, policies, policies,information information information against against agains again imbalances because of structural impeditechnology policies, information security poltechnology technology technology policies, policies, policies, information information information security security security polpolpolgenuine genuin genu ments; or (ii) characterized by slow growth genuine

Ghana’s IMF bailout

INVESTMENT TIMES

and an inherently weak balance of payments position. GHANA’S ECF PROGRAM IN 2015 On 3rd April, 2015, the Executive Board of the International Monetary Fund (IMF) approved a three-year arrangement under the Extended Credit Facility (ECF) for Ghana in an amount equivalent to SDR 664.20 million (180 percent of quota or about US$918 million) in support of the authorities’ medium-term economic reform program. The program aimed to restore macroeconomic stability, debt sustainability and to foster a return to high growth and job creation, while protecting social spending. The main pillars of the program were:

1. To achieve sizeable and frontloaded fiscal adjustment, to restore debt sustainability, to contain expenditures through wage board restraint and limited net hiring, as ess of directors’ siness ness ess continuity, continuity, continuity, continuity, board board board ofofof directors’ directors’ directors’ well as on measures to mobilise additional c. etc. c.etc. revenues;

bjective of CG is ensure transobjective bjective objective ofofof CG CG CG isisto to istoto ensure ensure ensure transtranstrans2. To embark on structural reforms to fof financial processes, establish f offinancial financial financialprocesses, processes, processes,establish establish establish strengthen public finances and fiscal discialance between key stakeholders balance alance balance between between between key key key stakeholders stakeholders stakeholders pline and by improving budget transparency, e shareholders the regulators, he ethe shareholders shareholders shareholders and and and the the the regulators, regulators, regulators, cleaning-up and controlling the payroll, ts boundaries that control the mits mits ts and and and and boundaries boundaries boundaries that that that control control control the the the right-sizing themanagers, civil service, and improving sof ofofofshareholders shareholders shareholders shareholdersand and and andmanagers, managers, managers, revenue collection; hers. hers. others. thers.

3. To restore the effectiveness of the inflation targeting framework to help bring inflation back into single digit territory; and preserve financial sector stability. 4. T safeguard social and other priority spending under the program, including expanding the targeted social safety nets—such as the Livelihood Empowerment Against Poverty (LEAP) program. A similar program could be agreed on with the IMF after the ongoing negotiations. GHANA’S BARGAINING CHIP Government of Ghana has indicated that, it will be presenting its Enhanced Domestic Program (EDP) to serve as an anchor program at the negotiation table. The EDP is a 3-year fast-tracked macroeconomic stabilization program that seeks to restore investor confidence and achieve fiscal and debt sustainability. The program is heavily driven by a mix of robust structural reforms and revenue, expenditure, and financing policies. This will further enhance the recovery and transformation efforts by the Government under the Ghana CARES ‘Obaatan pa’ Program. The main pillars are; i. Strengthen government’s effort to restore investor confidence in the economy,

en the corporate setting for been en eenin ininin the the the corporate corporate corporate setting setting setting for for for n 17 years, I can confirm that, han n an 17 17 17years, years, years,I I can I can canconfirm confirm confirmthat, that, that, setting up these structures, polih, setting setting setting up up up these these these structures, structures, structures, polipolipoliontrols take time and huge capital ontrols controls controls take take take time time time and and and huge huge huge capital capital capital plementing them to the letter is aisaa mplementing plementing mplementing them them them tototo the the the letter letter letter isisa rdle hurdle urdle rdle for for for formost most most mostinstitutions. institutions. institutions. institutions.For For For For tutionalizing CG is mere academtitutionalizing tutionalizing stitutionalizing CG CG CG isismere ismere mere academacademacademis meant to fulfil all righise ethat that that that isisis meant meant meant tototo fulfil fulfil fulfil allallall righrighrighdemanded by their regulators or sss demanded demanded demanded by by by their their their regulators regulators regulators ororor rested parties. Many institutions’ rested erested terested parties. parties. parties. Many Many Many institutions’ institutions’ institutions’ anagers, etc either do not undermanagers, anagers, managers, etc etc etc either either either do do do not not not underunderundercontrols or flagrantly bypass them controls econtrols controls ororor flagrantly flagrantly flagrantly bypass bypass bypass them them them lfish interests. The aim of this artilfish elfish selfish interests. interests. interests. The The The aim aim aim ofofof this this this artiartiartielp unravel the factors that may help elp help unravel unravel unravel the the the factors factors factors that that that may may may ributed largely tototo these defiant ributed ntributed tributedlargely largely largely to these these these defiant defiant defiant and how they can be mitigated srs and and and how how how they they they can can can be be be mitigated mitigated mitigated ttatatleast, least, by institutions who are least, least,by by byinstitutions institutions institutionswho who whoare are are bout making them work. bout about about making making making them them them work. work. work.

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Ghana’s IMF bailout

A N EW T H I NKI NG

thereby, regaining market access, boosting Development Partner (DP) disbursements, and unlocking other financing sources; ii. Restore debt sustainability and macroeconomic stability to support green growth, economic transformation and job creation while protecting social spending; iii. Strengthen the Central Bank’s Monetary Policy Regime; iv. Build buffers to strengthen resilience to economic shocks; and v. Further enhance the recovery and transformation efforts by the government under the Ghana CARES ‘Obaatan pa’ Program.

Government has hinted of its expectation of getting between US$ 2- 3billion in BoP support. These are early days of the negotiations as Ghana is at the data sharing stage with the Fund for a possible stabilization program.

Broader consultations with sections of the populace by the Government of Ghana before commencement of negotiations with the IMF could have solidified Ghana’s position at the negotiation table. History is the best teacher. The IMF’s Structural Adjustment Program (SAP) in 1983 which spurred economic growth but at a social cost and the net freeze on employment and cut in other social expenditure between 2015-2019 during the implementation ECF program are good examples to inform government’s position as it engages the Fund. TO REVIEW OR SCRATCH? As Ghana negotiates for a stabilization program, domestic pressures heightens. Agitations from the labor front are rife. Civil and

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Local Government Staff Association of Ghana (CLOSAG) in April, 2022 embarked on a strike to demand so-called ‘neutrality allowance’. On 4th July, 2022, Ghana National Association of Teachers (GNAT), National Association of Graduate Teachers (NAGRAT), Teachers and Educational Workers’ Union (TEWU) and Coalition of Concerned Teachers (CCT) declared a strike to demand 20% Cost-of-Living Allowance (COLA). A meeting between the Ministry of Employment and the striking unions ended inconclusively on 6th June, 2022. Other labor unions have hinted of similar industrial actions. In the 2022 Budget, government earmarked GH¢ 35.4 billion for compensation of government employees. This follows closely with interest payment allocation of GH¢ 37.4 billion. The tight fiscal space makes is difficult for government to fully accommodate the demands of labor. On the other hand, flagship programs of the government which include, Free Senior High School Education, Planting for Food and Jobs, 1D1F etc have come up for discussion. Typical IMF stabilization programs comes with austerity measures which some sections of Ghanaians fear these programs might be reviewed or scratched despite government assurances. In conclusion, as Ghana engages the IMF for the 18th stabilization program, Ghanaian authorities should negotiate in the best interest of Ghanaians with emphasis on social protection. The medium term prospects of the country are bright hence an IMF program should be anchored on securing prior micro and macroeconomic gains while dealing with the risk of fiscal slippages, ballooning debt and its accompanying interest payment. Emmanuel Amoah-Darkwah Economist/ Partner @C-KADD Global

Ghana’s IMF bailout

INVESTMENT TIMES

FDI as a stimulus for economic recovery in Ghana By Paul Frimpong

Let’s not pretend that we aren’t worried about

2022. Growth is expected to be broad-based, led by agriculture and services, and a relatively stronger industry sector.

the current global economic happenings that have thrown all predictions into disarray.

By this, I am referring to the decline in global economic growth; the rise of public debt above sustainable levels across major economies, especially in emerging markets; the degree of decay when it comes to public health due to the COVID-19 pandemic; and now the Russia-Ukraine war and its attendant consequences. In all these uncertainties and global risks, no single country is an exception, as that’s the case for Ghana. In this article, first originally written for and published by Ghana Invest, a Paris-based private diaspora-led organization dedicated to the promotion of Ghanaian trade, industry and investment abroad, I will be sharing some insights, which border on Ghana’s quest for economic recovery, which could be shorter or longer, depending on the approach that the government of the day chooses. Foreign direct investment (FDI) is an integral part of an open and effective international economic system and a major catalyst for development. The question is, how will Ghana catalyse FDI for its economic recovery? Economic Outlook According to a recent IMF report, Ghana’s economy is projected to remain relatively strong over the medium term, supported by higher prices for key exports and strong domestic demand. Growth is projected to reach 5.5% in 2022 and average 5.3% over

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‘Light at the end of the tunnel’ Let me make it simple for you to grasp. Ghana’s current economic situation fits the phrase, "There’s light at the end of the tunnel." In the wake of the recent COVID-19 outbreak, global commodity price fluctuations, and the instabilities and uncertainties in and around Europe, the Ghanaian economy has suffered a great deal of economic difficulties at the macro and micro levels. The war in Ukraine is expected to exacerbate already-existing fiscal and macroeconomic challenges, slowing growth to pre-pandemic levels. The developments are expected to raise global prices for a number of key commodities, including food, fuels, fertilizers, and metals used in manufacturing, adding to Ghana's already existing inflationary pressures. However, one could argue that the road to recovery could be shorter than anticipated if governments had the political will to stay through on the fiscal discipline that’s required in times like these. Rising debt levels Ghana’s public debt has risen past the sustainable levels for anemerging economy.

FDI as a stimulus for economic recovery

A NEW T HI NKI NG

The country’s current debt is over 80% of its GDP The overall fiscal deficit doubled to 15.2% in 2020 and public debt increased to 81.1% in 2020, placing Ghana at a significant risk of debt distress. These rising public expenditures in the context of persistently weak revenue performance have undermined Ghana’s fiscal and debt sustainability in recent years. As the country’s fiscal risks remained high, credible fiscal consolidation was required to reverse the unfavourable debt dynamics and reduce domestic refinancing risks.

Catalysing on FDI for quicker recovery Global FDI flows fell by 35% in 2020, reaching $1 trillion from $1.5 trillion in 2019.This is the lowest level since 2005 and nearly 20% lower than the post-global financial crisis trough in 2009. Greenfield investments in industry and new infrastructure investment projects in developing countries were hit especially hard. This is according to the World Investment Report, 2021

Home-grown policies In the wake of these fiscal management challenges, the government has developed and introduced policy measures and programs aimed at restoring fiscal discipline, reversing the fiscal deterioration, and putting the public debt on a downward and sustainable path. The government’s 2022 budget sets forth an ambitious consolidation plan as it aims to raise revenue from 16% in 2021 to 20% in 2022. Fiscal measures would reduce the deficit from 12% in 2021 to 4.5% by 2024. E-Levy In a move to stimulate domestic revenue growth, which is ideal in this situation looking at the impossible state for the country to borrow from the international capital market, the government has introduced an electronic transfer levy, which has faced steep opposition from the Ghanaian populace. The E-levy is estimated to generate 1.4% of 2022 GDP.

Among developed countries, FDI flows to Europe fell by 80 percent. The fall was magnified by large swings in conduit flows, but most large economies in the region saw sizeable declines. Flows to North America fell by 42%, while those to other developed economies fell by about 20% on average.In the United States, the decline was mostly caused by a fall in reinvested earnings. FDI flows to Africa fell by 16% to $40 billion, a level not seen in 15 years. Greenfield project announcements, the key to industrialization prospects in the region, fell by 62 per cent. Commodity exporting economies were the worst affected. Flows to developing Asia were resilient. In fact, inflows into China increased by 6% to $149 billion. South-East Asia saw a 25% drop, with its reliance on GVC-intensive FDI playing a significant role. FDI flows to India increased, driven in

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FDI as a stimulus for economic recovery

INVESTMENT TIMES

The government’s 2022 budget sets forth an ambitious consolidation plan as it aims to raise revenue from 16% in 2021 to 20% in 2022. Fiscal measures would reduce the deficit from 12% in 2021 to 4.5% by 2024

part by M & A activity. Now that we have had a fair idea of the FDI flows globally and in specific regions, let’s zero in now on Ghana, which is our point of focus.

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FDI as a stimulus for economic recovery

A NEW THINKING

In a quarterly briefing report by the Ghana Investment Promotion Centre (GIPC), between "January to June 2021, Ghana recorded 122 projects with a total estimated investment of US $874.01 million. The FDI component and the local components amounted to US $829.29 million and US $44.72 million, respectively, for the first half of 2021. The FDI value of US $829.29 million represents an increase of 32.15% over the FDI value of US $627.52 million recorded in the first half of 2020. The total initial capital transfers also amounted to US $47.76 million for the first half of 2021.

well. As most studies have revealed and as is evident across multiple economies, FDI triggers technology spillovers, assists human capital formation, contributes to international trade integration, helps create a more competitive business environment, and enhances enterprise development. It differs from other major types of external private capital flows in that it is primarily motivated by the investors’ long-term prospects for profit in production activities over which they have direct control. For a country like Ghana, the case is no different in how FDI could become a catalyst for economic recovery. It has already proven to become an important source of private external finance. Given the scale and magnitude of the opportunities that could be leveraged from FDI, it has become imperative that Ghana develop a coherent policy approach to establish a hospitable regulatory framework for FDI.

Source: GIPC Quarterly Investment Report, 2021 The services sector recorded the highest number of projects at 63, followed by the manufacturing sector, which recorded 24 projects, as seen in the figure below

The services sector, of course, due to the volumes in the project numbers, recorded the largest value in terms of FDI of US$597.63 million followed by the manufacturing sector with an FDI value of US$98.74 million.

These issues border on rules regarding market entry, foreign ownership, and treatment accorded to foreign-owned firms, as well as improving the general market functions. They also include a conscious approach to including investment promotions, investment incentives (tax, etc.), post-investment services, amenity improvements, and measures to reduce the cost of doing business

About Author Paul Frimpong, CGIA, FCCE Paul Frimpong is an economist and award winning entrepreneur. He’s currently the Global Head of Strategy & Membership at the Institute of Certified Chartered Economists (ICCE). This article is originally curated for and published by Ghana Invest.

While the international investment architecture is an important driver of FDI flows, national policies play an important role as

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FDI as a stimulus for economic recovery

INVESTMENT TIMES

The Future of Work Capsules: The global looming debt crisis and lessons from the 1980’s By Baptista Sarah Gebu (Mrs.)

e recently celebrated African Union Day. On this day in 1963, the Organization of African Unity – now known as the African Union – was established. We commemorate this day, reflecting on the accomplishments of people across the African continent, and on the challenges, we still endure and must concur. This year, I spent this very significant day with queen mothers where I delivered a speech and helped build capacity for some other women and girls present. Long Live the African Union and may it eventually help unite Africans and all backs in the diaspora! The entire world is said to be in debt crises, national budgets are at breaking point as some governments are forced to cut spending and many borrow more to stay afloat. What can we do to stop the looming global debt crisis? Can Africa do something to prevent the looming debt typhoon? Is history repeating itself as the 1980’s was remembered by many as a lost decade where many economies faced financial tremor which was said to have eroded their economy. A Lost Decade is an economic phrase used to refer to a decade of time with no financial gains in the stock market; this lost decade refers to a period of economic stagnation. In a World Bank tweet recently, it was announced in the next 12 months; as many as a dozen developing economies could prove unable to service their debt. What could the world economies be heading to? According to the Federal Reserve history, “During the Latin American debt crisis of the 1980s—a period often referred to as the “lost decade”—many Latin American countries became unable to service their foreign debt. The Federal Reserve and other international institutions responded to the crisis with a number of actions that ultimately helped alleviate the situation, albeit with some unintended consequences. Lessons from the past can help us manage the future. What was the trigger of this lost decade, there 11 investmenttimesonline.com

The Future of Work Capsules

FDI as a stimulus for economic recovery

A NEW THINKING

were were two two large large oil oil shocks shocks causing causing high high rocketrocketing ing oil oil prices prices which which eventually eventually disturbed disturbed the the finances finances and and created created big big deficits deficits and and pushed pushed most most economies economies into into points points of of collapse? collapse? According According to to the the New New York York Times, Times, Mexico Mexico was was the the first first to to fall fall as as aa long, long, anxious anxious queue queue formed formed outside outside on on the the outskirts, outskirts, with with many many job-seekjob-seekers, ers, mostly mostly women; women; coming coming from from far far away away and and several several other other countries countries announcing announcing they they couldn’t couldn’t pay pay their their debts. debts. Brazil, Brazil, Peru, Peru, Chile, Chile, Columbia, Columbia, Venezuela, Venezuela, Argentina Argentina and and Ecuador Ecuador were were all all affected affected with with unemployment, unemployment, deep deep recession, recession, slow slow economic economic growth, growth, high high inflainflation tion and and mounting mounting debt. debt.

global global oil oil crisis, crisis, making making the the economic economic foreforecast cast darker darker and and darker. darker.

Developing Developing economies economies are are now now said said to to be be suffering suffering from from debt debt crisis crisis and and some some economies economies are are collapsing collapsing from from ballooning ballooning debt debt and and shrinking shrinking foreign foreign reserves reserves among among high high inflainflation tion rates. rates. There There isn’t isn’t enough enough money money to to pay pay for for basic basic necessities necessities of of life life such such as as food, food, proper proper medical medical care care and and shelter shelter among among others others due due to to mismanaged mismanaged finances finances as as those those economies economies spend spend more more than than the the national national income income and and destroyed destroyed the the economy. economy. The The global global factors factors contributing contributing to to these these includes includes induced induced slowslowdown, down, growing growing cost cost of of borrowing borrowing and and until until recently recently Russia’s Russia’s invasion invasion of of Ukraine. Ukraine. The The sancsanctions tions imposed imposed by by the the West West has has increased increased food food and and fuel fuel prices. prices. The The fear fear is is that that these these Sir Sir Lanka Lanka crises crises can can mutate mutate as as put put forward forward by by the the world world in in one one news. news. Sri Sri Lanka Lanka has has defaulted defaulted on on aa multi-million-pound multi-million-pound foreign foreign debt debt payment, payment, deepening deepening the the nation's nation's worst worst economic economic crisis crisis since since itit gained gained independence independence in in 1948. 1948. The The new new Prime Prime Minister, Minister, Ranil Ranil Wickremesinghe, Wickremesinghe, is is appealing appealing for for foreign foreign help help to to bail bail out out the the govgovernment, ernment, which which has has almost almost run run out out of of foreign foreign currency currency reserves reserves the the BBC BBC reported. reported. The The entire entire developing developing world world is is said said to to be be at at risk. risk.

To To commence, commence, Egypt Egypt imported imported $5.2 $5.2 billion billion in in Wheat, Wheat, becoming becoming the the first first largest largest importer importer of of Wheat Wheat in in the the world. world. Egypt Egypt the the land land of of the the pharaohs pharaohs as as the the world’s world’s largest largest importer importer of of wheat wheat depends depends on on Black Black Sea Sea wheat, wheat, importimporting ing about about 80% 80% from from Russia Russia and and Ukraine Ukraine in in 2021. 2021. Egypt Egypt now now is is said said to to have have approved approved India India as as one one of of its its suppliers. suppliers. An An Egyptian Egyptian delegation delegation went went to to India India to to discuss discuss wheat wheat imports, imports, visiting visiting fields fields and and grain grain stores stores in in various various regions regions for for aa rigorous rigorous quality quality review. review. Egypt Egypt wheat wheat reserves reserves may may not not last last longer longer per per media media reports. reports. Accounting Accounting to to the the Middle Middle East East Monitor, Monitor, “Russia's “Russia's invasion invasion of of Ukraine Ukraine and and imposed imposed sanctions sanctions could could lead lead to to bread bread shortshortages ages across across parts parts of of the the Arab Arab world, world, including including war-torn war-torn Yemen, Yemen, where where millions millions are are already already on on the the brink brink of of starvation”. starvation”.

The The World World Bank Bank had had issued issued aa warning warning saying saying developing developing nations nations face face aa looming looming debt debt crisis. crisis. This This issue issue named named 17 17 countries countries saying saying this this could could crush crush their their economy economy in in 2022. 2022. Nine Nine days days later, later, Russia Russia invaded invaded Ukraine Ukraine leading leading to to disturdisturbance bance in in supply supply chains chains compounded compounded by by sancsanctions tions imposed imposed on on Russia Russia by by the the West West has has put put financial financial markets markets into into disarray, disarray, triggered triggered aa

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UN UN warns warns 107 107 countries countries have have severe severe expoexposure sure to to consequences consequences of of the the Ukraine Ukraine War. War. These These countries countries are are forced forced to to face face one one of of the the three three crises crises namely namely the the rising rising food food prices, prices, rising rising energy energy prices prices and and tougher tougher financial financial conditions. conditions. These These 107 107 countries countries together together reprepresent resent 1.7 1.7 billion billion people people or or one one fifth fifth of of humanity. humanity. 69 69 courtiers courtiers face face all all these these 33 risks risks which which includes includes 25 25 countries countries in in Africa Africa and and same same for for Asia Asia –– Pacific Pacific and and 19 19 countries countries for for Latin Latin America. America.

According According to to aa special special briefing briefing by by the the US-based US-based Middle Middle East East Institute Institute (MEI) (MEI) earlier earlier this this week, week, "the "the Ukraine Ukraine crisis crisis could could trigger trigger renewed renewed protests protests and and instability instability in in several several MENA MENA countries." countries." The The region region is is heavily heavily reliant reliant on on wheat wheat supplies supplies from from both both countries countries in in the the conflict, conflict, with with half half of of Ukraine's Ukraine's wheat wheat exports exports make make their their way way to to the the Middle Middle East East North North Africa Africa (MENA) (MENA) region region and and Russia Russia also also providproviding ing aa significant significant amount amount of of wheat. wheat. "If "If aa war war causes causes disruptions disruptions to to these these supplies, supplies, this this could could hit hit food food import import dependent dependent countries countries like like Egypt, Egypt, Yemen, Yemen, Libya, Libya, Lebanon, Lebanon, and and others others hard," hard," the the report report added. added. Rising Rising prices prices are are set set to to stoke stoke inevitable inevitable rise rise in in civil civil unrest unrest in in Egypt, Egypt,

The Future of Work Capsules

INVESTMENT TIMES

The World Bank had issued a warning saying developing nations face a looming debt crisis. This issue named 17 countries saying this could crush their economy in 2022. Nine days later, Russia invaded Ukraine leading to disturbance in supply chains compounded by sanctions imposed on Russia by the West has put financial markets into disarray, triggered a global oil crisis, making the economic forecast darker and darker. Tunisia Tunisia and and Lebanon. Lebanon. In In Tunisia, Tunisia, trade trade deposits deposits widen widen to to $800 $800 million, million, inflation inflation and and fuel fuel prices prices are are said said to to be be high high as as this this could could cause cause civil civil unrest. unrest. In In Lebanon, Lebanon, fuel fuel prices prices went went up, up, the the currency currency lost lost itit value, value, the the country country is is said said to to have have gone gone to to the the World World Bank Bank for for loan loan to to ensure ensure food food security. security. “Tunisia “Tunisia has has experienced experienced aa sharper sharper decline decline in in economic economic growth growth than than most most of of its its regional regional peers, peers, having having entered entered this this crisis crisis with with slow slow growth growth and and rising rising debt debt levels” levels” –– the the World World Bank Bank reported. reported. In In Argentine Argentine the the country country is is runrunning ning to to the the IMF IMF for for bale bale out. out. Research Research has has itit that, that, their their debt debt levels levels are are mounting, mounting, same same with with inflainflation tion as as the the country country is is hit hit by by bread bread shortage. shortage. “Argentina, “Argentina, which which has has been been struggling struggling with with high high inflation inflation for for years, years, is is on on course course to to see see inflation inflation of of at at least least 60% 60% by by the the end end of of 2022” 2022” reported reported the the DW DW news. news.

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In In Ghana, Ghana, the the debt debt and and interest interest rates rates are are chocking chocking the the economy. economy. According According to to the the Business Business and and Financial Financial Times, Times, attempts attempts to to cool cool off off inflationary inflationary prespressures sures remain remain unsuccessful unsuccessful as as consumer consumer inflation inflation increased increased almost almost four-fold four-fold to to 27.6 27.6 percent percent year year on on year year from from 7.5 7.5 perpercent cent last last year. year. In In Kenya Kenya the the government government is is reported reported to to has has gone gone in in for for $244 $244 Million Million IMF IMF loan. loan. In In South South Africa Africa the the debt debt is is up up to to 80% 80% of of GDP GDP the the IMF IMF reported. reported. In In Turkey Turkey and and elsewhere elsewhere the the spike spike of of the the debt debt crisis crisis is is looming. looming. What What are are your your thoughts, thoughts, is is itit Russia’s Russia’s invasion invasion of of Ukraine Ukraine or or it’s it’s the the sanctions sanctions imposed imposed by by the the West? West? In In the the next next 12 12 months, months, as as many many as as dozen dozen developing developing economies economies could could prove prove unable unable to to service service their their debts debts as as put put forward forward by by the the World World Bank. Bank. This This will will be be the the largest largest debt debt crisis crisis in in aa generation. generation. The The entire entire world world is is in in debt debt distress, distress, national national budgets budgets are are at at breaking breaking points points however, however, experts experts have have advised advised on on road road maps maps to to urgently urgently consider. consider. Africa Africa and and other other suffering suffering economies economies must must manage manage their their borrowing borrowing and and lending lending better, better, think think of of introducing introducing better better ways ways of of managing managing shocks shocks including including expandexpanding ing common common framework framework and and eligibility eligibility criteria, criteria, promoting promoting alternatives alternatives to to borborrowing rowing such such as as improving improving tax tax collection collection and and reducing reducing borrowing borrowing and and increasing increasing accountability accountability and and transparency. transparency. These These are are some some of of the the ways ways experts’ experts’ advice advice we we can can navigate navigate our our way way around around this this loomlooming ing debt debt crisis. crisis. For For us us in in Ghana Ghana our our head head of of state state IgnatiIgnatius us Kutu Kutu Acheampong’s Acheampong’s “operation “operation feed feed yourself” yourself” initiative initiative which which was was an an agriculagricultural tural program program administered administered in in Ghana Ghana under under the the then then military military general general aimed aimed to to increase increase levels levels of of food food crops crops proproduced duced in in Ghana Ghana for for domestic domestic consumpconsumption tion and and attempts attempts self-sufficiency. self-sufficiency. This This

The Future of Work Capsules

A NEW THINKING

initiative should be revisited in full force. The recent government’s planting for food and jobs initiative was created on this premise. Let’s go back to our root. “Sankofa” is good. The complete Africanization of our mind, body and soul is needed, as we make efforts to return to Eden and support our domestication plan to self-sufficiency. The over dependency on imports is not too good for Africa. The benefits of a single trade market for Africa must be re-activated and promoted. I am so aligned to the Managing Director of FBN Bank, Victor Yaw Asante’s call, for AU to solicit regional integration and support, forge fresh collaboration that will help the African Continental Free Trade Area (AfCFTA) remove all trade barriers from the continent that hinder intra-African trade.

By Baptista Sarah Gebu (Mrs.) Baptista is an influencer, a human resource professional with a broad generalist background. Building a team of efficient & effective workforce is her business. Affecting lives is her calling! She is a Hybrid Professional, HR Generalist, strategic planner, innovative, professional connector and a motivator. You can reach her via e-mail on forealhrservices@gmail.com and follow this conversation on all social media pages. Facebook / LinkedIn/ Twitter / Instagram: FoReal HR Services.

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The Future of Work Capsules

INVESTMENT TIMES

Absa Bank is transforming the SME landscape in Ghana

Absa Bank has set out to undo the most

critical issue facing traders and small businesses in Ghana today - access to finance.

There is no doubt about it; SMEs contribute over 80% to the country’s GDP growth. These businesses are the bedrock of economic stimulation, advancement and stability. Ghana’s history and its performance to date is in some way attributable to the enterprising resourcefulness of its SMEs – especially micro-traders, artisans and small set-ups. However, unlike their counterparts in large institutions, multinationals and other corporate setups, access to finance continues to be a critical bottleneck. In cases where access to finance becomes available, the rates are extremely high and exorbitant, which affects the willingness to apply or access.

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The situation gets trickier when for specific loans, the insistence on collaterals is enforced to cut off a section of these small business operators. Many advocates have called for a second look at the economic regime and relax complications to enable such businesses to thrive. The Ghana Union of Traders Association (GUTA), the mother body for most traders and retail businesses have often bemoaned the lack of flexibility in the financing regime and has called for government and the private sector to do something about it. It is in this light, that Absa Bank Ghana partnered with the Mastercard foundation under the Young Africa Works (YAWS) scheme to fund and train 5,000 locally-owned businesses with the aim of creating 50,000 jobs in Ghana. The 5-year (2020-2025) strategic partnership between Absa Bank Ghana and the Mastercard Foundation (MCF) has a goal to create dignified and fulfilling jobs for young

Absa Bank is transforming the SME landscape in Ghana

A NEW THINKING

men and women in Ghana. The project also supports MSMEs through capacity building, training and lending. As part of implementing its capacity building mandate, YAWS will assign Business Development Service (BDS) providers to these individual SMEs to identify the gaps in their business operations and proffer bespoke training and solutions in addressing them. After the training, these businesses would be further assessed for lending purposes in order to ensure the sustainability of their establishments. The other day in Accra, in front of over 350 members of GUTA, Absa signed a Memorandum of Understanding (MOU) with the executives of GUTA, outlining in great detail the terms of the partnership, including the nature of businesses that qualify to access loans under the YAWS scheme. Absa bank has even gone above its call of duty to defray a lot of associated costs that affect businesses when they access loans in Ghana. For example, the MOU allows businesses under GUTA to access loans of up to GHC500,000 without collateral and GHC1,000,000 without collateral to women-owned businesses, with an additional 1% discount for all eligible businesses. “What Absa Bank has done is a welcome gesture in government’s drive to empower and sustain these businesses in advancing the country’ economic growth. I want to urge the traders and business folk gathered here to focus on how to carefully manage the returns on your business in order to ensure sustainability and continuity. Let us refrain from unnecessary spending on perishable items and instead reinvest in the business,’ said Deputy Minister, Honorable Nana Ama Dokuah, who was the special guest of honour at the MOU signing ceremony.

ment about the prospect of seeing their businesses transform with the partnership. To add to the energy in the room, videos of former loan recipients sharing testimonies of their transformation were shared on the screens by Absa Bank. These videos did a lot in reinforcing the viability of the partnership and a call to action. Commenting on the collaboration with GUTA, Managing Director, Abena Osei-Poku, with excitement in her voice, highlighted what the association with GUTA means for the bank. “I hope that by the end of this session and the signing of the MOU, you will be left in no doubt about Absa’s commitment to stand beside you, in ensuring that your success and growth are guaranteed, making you ready to participate fully in the huge opportunity that the African Continental Free Trade Agreement (AFCTA) presents. We hope to use this avenue to firmly entrench our position as the go-to bank for all your needs and expectations.” So, whether you are a micro-level business operator or fall in the category of a medium-sized business in Ghana, you need not be burdened by the inadequate access to funds for expansion and diversification. The Absa – Mastercard Foundation partnership falls right into the heart of your specific need and is the panacea for overcoming the future challenges in the sector.

The faces of the traders at the ceremony reflected a high sense of optimism and excite-

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Absa Bank is transforming the SME landscape in Ghana

Business Loans For all your business loans, visit any of our 114 branches nationwide or talk to us on 0302-216000. Think Loans, think CBG.

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“AfCFTA will have a positive effect on intra-African trade levels, as early as 2022-23”

For

the third year running, the Pan-African Private Sector Trade and Investment Committee (PAFTRAC) have partnered with African Business magazine for the Africa CEO Trade Survey. The survey aims to provide the African private sector with a unified voice in informing trade policy at the continental and regional level. This year, over 800 executives active in the continent, from 46 countries in Africa, responded to the Africa CEO Trade Survey. The survey provided a unique insight into the challenges and opportunities that exist in trading in Africa, and served as an excellent barometer of private sector sentiment on African trade and the African Continental Free Trade Area (AfCFTA). The Survey results were analysed and released in a report earlier today during the Annual Meetings of the African Export-Import Bank (Afreximbank), one of the key supporters of PAFTRAC. Speaking on the survey results, Prof Pat Utomi, Chairman of PAFTRAC, shared that the “survey clearly shows that the vast majority of African CEOs believe that the implementation of the AfCFTA will have a positive effect on levels of

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intra-African trade, even as early as 2022-23. 93% of CEOs surveyed were confident to some extent that it would have a positive impact, with 26% describing themselves as very confident.” Adding that “just 4% of participants believe that the AfCFTA will have, or has already had, a negative impact on their businesses.” While intra-African trade and the AfCFTA plays a big part in the report, the Survey also highlighted how African businesses see opportunities in external markets. Prof Utomi explained that “African companies do not seem to greatly favour exporting to any one region of the world over another. However, the survey showed while Europe appears to the be the favoured export destination, the Middle East is an increasingly popular destination given growing trade and investment ties with Africa.” The PAFTRAC Africa CEO Trade Survey report was launched during the Afreximbank Annual Meetings, which is being held in the New Administrative Capital of the Arab Republic of Egypt from until 18 June 2022. The 29th Afreximbank Annual Meetings with the theme “Realising the AfCFTA Potential in the post COVID-19 Era—Leveraging the power of the youth”, will include Advisory Group Meetings and the Annual General Meeting of Shareholders, complemented by seminars and plenaries. AfCFTA will have a positive effect on intra-African trade levels

A NEW THINKING

AfDB to invest €10m in reinsurance firm CICA-Re

heheAfrican AfricanDevelopment DevelopmentBank Bankhas hassigned signedanan agreement agreementtotoinvest investininthe theJoint JointReinsurance Reinsurance Company CompanyofofMember MemberStates StatesofofConférence Conférence Interafricaine Interafricaine des des Maarchés Maarchés d’Assurances d’Assurances (CICA-Re). (CICA-Re). Under Underthe theagreement, agreement,the theAfrican AfricanDevelopDevelopment mentBank Bankwill willtake takea a6.56-billion 6.56-billionFCFA FCFAstake stake (approximately (approximately€10 €10million) million)ininCICA-Re CICA-Reand and join joinitsitsboard boardofofdirectors. directors. Karim KarimDiarassouba, Diarassouba,chief chiefexecutive executiveofficer officerofof CICA-Re, CICA-Re,signed signedon onbehalf behalfofofthe thecompany. company. African AfricanDevelopment DevelopmentBank BankGroup GroupDirector Directorofof Financial FinancialSector SectorDevelopment DevelopmentStefan StefanNalleNalletamby tambysigned signedfor forthe theinstitution. institution.The Thesigning signing took tookplace placeon on9 9June Juneunder underthe theauspices auspicesofofthe the Ivorian Ivorian Minister Minister ofof Economy Economy and and Finance, Finance, Adama AdamaCoulibaly. Coulibaly. The Theinvestment investmentit itisisexpected expectedtotostrengthen strengthenthe the underwriting underwritingcapacity capacityofofCICA-Re CICA-Reand andcontribcontribute utetotothe thefinancing financingofofitsitsdevelopment developmentand and expansion expansionacross acrossAfrica. Africa.It Itwill willalso alsobolster bolsterthe the company’s company’scontribution contributiontotothe thedevelopment developmentofof domestic domesticcapital capitalmarkets marketsthrough throughthe theretention retention ofofa asubstantial substantialshare shareofoflocally locallygenerated generated

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The with the Bank’s strategic goal of deepening capital markets and promoting more-robust and better-integrated African financial institutions that offer more-diversified products to support the real sector. CICA-Re is the third regional reinsurance company in which the Bank has made an investment

reinsurance reinsurancepremiums. premiums.The Theinvestment investmentwill will also also implement implement CICA-Re's CICA-Re's environmental environmental and andsocial socialpolicy, policy,consolidate consolidateitsitsgovernance governance and andrisk-management risk-managementframework, framework,grow growitsits capacity capacitytotoprovide providetechnical technicalassistance assistanceinin insurance insurance and and reinsurance, reinsurance, and and support support efforts effortstotodiversify diversifyitsitsreinsurance reinsuranceproducts. products. Stefan StefanNalletamby, Nalletamby,the theAfrican AfricanDevelopment Development Bank BankGroup's Group'sDirector DirectorofofFinancial FinancialSector Sector Development, Development,said, said,"This "Thisoperation operationisisone oneofof the theAfrican AfricanDevelopment DevelopmentBank's Bank'sstrategic strategic interventions interventionstotoincrease increaseitsitscontribution contributiontoto the thedevelopment developmentofofthe theAfrican Africanreinsurance reinsurance sector sector through through supporting supporting strong strong African African

AfCFTA will have a positive effect on intra-African trade levels

INVESTMENT TIMES

players playerslike likeCICA-Re, CICA-Re,which whichisiscapable capableofofrising risingtoto international internationalstandards." standards." Karim KarimDiarassouba, Diarassouba,chief chiefexecutive executiveofficer officerofof CICA-Re, CICA-Re,said, said,"This "Thispartnership partnershipwith withthe theAfrican African Development DevelopmentBank Bankisisintended intendedtotostrengthen strengthenthe the company's company'sfinancial financialrobustness robustnessand andsupport supportthe the growth growthofofthe thejoint jointreinsurance reinsurancecompany's company'sactivactivities, ities,while whileenriching enrichingitsitsmultisectoral multisectoralexperiexperience." ence." CICA-Re CICA-Reisisa akey keyplayer playerininthe thedevelopment developmentofof the the insurance insurance and and reinsurance reinsurance sector. sector. ItsIts member member countries countries are: are: Bénin, Bénin, Burkina Burkina Faso, Faso, Cameroon, Cameroon,Congo, Congo,Côte Côted'Ivoire, d'Ivoire,Gabon, Gabon,Mali, Mali, Niger, Niger,Central CentralAfrican AfricanRepublic, Republic,Senegal, Senegal,Chad Chad and andTogo. Togo. The Theinvestment investmentaligns alignswith withthe theBank’s Bank’sstrategic strategic goal goalofofdeepening deepeningcapital capitalmarkets marketsand andpromotpromoting ingmore-robust more-robustand andbetter-integrated better-integratedAfrican African financial financialinstitutions institutionsthat thatoffer offermore-diversified more-diversified products productstotosupport supportthe thereal realsector. sector.CICA-Re CICA-Reisis the thethird thirdregional regionalreinsurance reinsurancecompany companyininwhich which the theBank Bankhas hasmade madeananinvestment. investment.The Theother othertwo two are areAfrican AfricanReinsurance ReinsuranceCorporation Corporation(Africa-Re), (Africa-Re), ofofwhich whichthe theBank Bankisisa afounding foundingmember, member,and and PTA PTAReinsurance Reinsurance(ZEP-RE). (ZEP-RE).

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A NEW THINKING

Cash is King :Time to build a strong cash management culture

The COVID–19 pandemic has had a significant effect on governments and businesses with many trying to stay as liquid as possible. Then came supply chain disruptions, inflation (now at an 18-year high of 27.6%), rising interest rates and the war in Ukraine and its impact on energy and other commodity prices. In response to control inflation, Central Banks especially in the developed economies began to reverse many of the measures implemented to keep their respective economies running during the pandemic.

For instance, the Bank of Canada, the US Fed and the Bank of England have all rolled back some of their measures to support the economy during the peak of the pandemic to fight inflation, particularly raising interest rates. Also, the European Central Bank is expected to raise rates later this year for the same purpose – inflation. However, the inflation and responses from Central Banks in developed economies are feared to have currency and debt sustainability implications for developing and emerging economies such as Ghana. This concern and rising domestic inflation elicited some notable policy measures from the Bank of Ghana in its last two Monetary Policy Committee meetings. The significant one was

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increase increase in in the the policy policy rate rate by by 450 450 basis basis points points to to 19%. 19%. In In addition, addition, itit increased increased the the Cash Cash Reserve Reserve Ratio Ratio to to 12%; 12%; the the Capital Capital Conservation Conservation Buffer Buffer was was reset reset to to the the pre-pandemic pre-pandemiclevel levelof of3%, 3%,making makingthe theCapCapital ital Adequacy Adequacy Ratio Ratio aa total total of of 13%; 13%; and and the the provisioning provisioning rate rate for for loans loans in in the the Other Other Loans Loans Exceptionally Exceptionally Mentioned Mentioned (OLEM) (OLEM) category category was was reset reset to to the the pre-pandemic pre-pandemic level level of of 10%. 10%. The The main main aim aim of of these these measures measures isis to to reduce reduce liquidity liquidity –– cash cash in in the the system. system. The The Central CentralBank’s Bank’soutlook outlookfor forinflation inflationisisneganegative tive and and could could mean mean further further increase increase in in the the future future especially especially given given the the latest latest statistics. statistics. Undoubtedly, Undoubtedly, cash cash isis the the lifeblood lifeblood of of every every business, business, itit isis king king and and therefore therefore aa regulatory regulatory constrain constrain on on its its availability availability requires requires proper proper management management and and utilizautilization tion of of what what isis available. available. Basically, Basically, cash cash management management isis necessary necessary because because there there are aremismatches mismatchesbetween betweenthe thetiming timingof ofpaypayments ments and and the the availability availability of of cash. cash. For For investment investment purpose, purpose, the the concern concern has has usuusually ally been been how how not not to to keep keep so so much much cash cash because because itit does does not not earn earn interest. interest. Banks; Banks; the the main main channel channel of of distributing/aldistributing/allocating locating financial financial resources resources need need to to

Cash is King :Time to build a strong cash management culture

INVESTMENT TIMES

manage manage their their own own liquidity liquidity at at this this time time to to maintain maintain the the stability stability of of the the sector sector and and proprovide vide stability stability for for customers customers and and the the econoeconomy my in in general. general. This This isis crucial crucial because, because, the the liquidity liquidity meameasures sures by by the the central central bank bank could could cause cause many many businesses businesses especially especially the the small small and and medium medium scale scale types types to to be be worried worried about about having having more more available available cash cash to to meet meet operational operational needs needs relative relative to to investments investments needs. needs. These These businesses businesses are are the the backbone backbone of of the the GhanaGhanaian ian economy, economy, making making more more than than 70% 70% of of the the country’s country’s Gross Gross Domestic Domestic Product Product (GDP). (GDP). Therefore, Therefore, the the banking banking sector sector should should manage manage its its cash cash (liquidity) (liquidity) to to remain remain stable stable and and to to support support the the sustenance sustenance of of these these businesses businesses .Some .Some have have questioned questioned the the capacity capacity of of the the inflation inflation targeting targeting regime regime to to control control the the kind kind of of inflation inflation we we have have today today which which isis largely largelydriven drivenby bysupply supplyside sidefactors, factors,and andthe the end end game game of of the the central central bank bank for for increasing increasing the the policy policy rate rate and and purchasing purchasing local local gold gold at at the the same same time. time. There There isis also also the the capital capital flow flow reverse reverse and and the the exchange exchange rate rate debate debate regarding regarding the the policy policy rate rate hikes. hikes. NotwithNotwithstanding standingthe thepolicy policydebates, debates,treasurers treasurersneed need to to ensure ensure their their banks banks can can meet meet their their liquidiliquidity ty needs needs and and also also serve serve their their customers customers to to the the best best of of their their abilities. abilities. This Thisfirst firstand andforemost foremostrequires requiresmaking makingcash cash management management aa top top priority. priority. ItIt should should be be at at this this time time aa constant constant item item in in every every top top manmanagement agement meeting meeting with with clear clear action action owners owners for for the the purposes purposes of of responsibility responsibility and and accountability. accountability. Importantly, Importantly, there there isis the the need need to to build build aa stronger stronger bond bond between between business business units units to to have have aa common common underunderstanding standing of of issues issues and and share share knowledge knowledge especially especially related related to to cash cash management. management. Every Every team team need need to to understand understand their their role role in in cash cash and and its its management management equation. equation. Today Today the the relationship relationship between between treasury treasury and and corporate corporate or or corporate corporate operations operations have have become become very very important important in in meeting meeting the the liquidity needs of banks and very integral liquidity needs of banks and very integral to to

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building building cash cash management management culture. culture. In In this this regard, regard, the the thinking thinking around around cash cash manmanagement agement culture culture should should go go along along some some core core fundamental fundamental objectives objectives which which include include but but limited limitedto; to;timely timelyvisibility visibilityinto intoall alltransactions; transactions; removing/reducing removing/reducing time-consuming time-consuming and and vulnerable vulnerablemanual manualpayment-generation payment-generationworkworkflows, flows, compliance compliance issues issues causing causing significant significant delays delays or or confusion confusion around around transactions transactions and and cash cash flows; flows; and and there there should should be be aa strong strong collaboration collaboration between between risk risk and and treasury treasury manmanagement. agement. Real-time, Real-time, end-to-end end-to-end visibility visibility across across the the entire entire liquidity liquidity landscape landscape taking taking into into account account cash flows, fund requirements, risk scenarios cash flows, fund requirements, risk scenarios and and constant constant monitoring monitoring of of the the market market activiactivities give treasurers a better control of ties give treasurers a better control of the the liquidity liquidity situation situation of of their their banks. banks. This This control control isis enabled enabled by by daily daily cash cash forecasts forecasts based based on on aa data data driven driven view view of of the the bank’s bank’s entire entire liquidity liquidity landscape. This is particularly crucial for landscape. This is particularly crucial for short short term term liquidity liquidity managing. managing. Reliable Reliable daily daily foreforecasting requires input from many sources, casting requires input from many sources, including including individual individual business business units. units. The The level level of details included in the information for foreof details included in the information for forecasting, casting, makes makes itit possible possible for for the the treasury treasury team particularly to understand very team particularly to understand very clearly clearly what what isis happening. happening. Also, Also, daily daily cash cash forecast forecast ensures ensures that that the the bank’s position for instance can be seen bank’s position for instance can be seen at at almost almost every every level level of of the the business. business. Each Each busibusiness ness units units or or department department can can have have their their respective respective cash cash positions positions forecasted forecasted as as part part of of the overall daily cash forecasting process the overall daily cash forecasting process allowing allowingfor forgreater greatercash cashvisibility visibilityand andalso alsocan can afford treasurers vastly improved financial afford treasurers vastly improved financial control. control. Achieving Achieving real-time real-time end end to to end end cash cash visibility visibility on the back of faster payment and collections on the back of faster payment and collections will will bring bring efficiencies efficiencies to to treasury treasury teams teams of of banks. This means removing/reducing banks. This means removing/reducing time-consuming time-consuming and and vulnerable vulnerable manual manual paypayment-generation workflows. In this regards, ment-generation workflows. In this regards, treasurers treasurers need need assistance assistance in in teams teams of of the the right technological preforms. The deployment right technological preforms. The deployment of of the the appropriate appropriate technology technology will will ensure ensure for for

Cash is King :Time to build a strong cash management culture

A NEW THINKING

Achieving real-time end to end cash visibility on the back of faster payment and collections will bring efficiencies to treasury teams of banks. This means removing/reducing time-consuming and vulnerable manual payment-generation workflows. In this regards, treasurers need assistance in teams of the right technological preforms. The deployment of the appropriate technology will ensure for instance treasury teams will not have to wait until the start of the next business day to check on whether transactions (especially cross-border transactions) have been successfully processed or received. In addition, automation of processes identified as crucial for cash management should consider audit and compliance processes that cause significant delays or confusion around transac-

instance instance treasury treasury teams teams will will not not have have to to wait wait until until the the start start of of the the next next business business day day to to check check on on whether whether transactions transactions (especially (especially cross-border cross-border transactions) transactions) have have been been sucsuccessfully cessfully processed processed or or received. received. In In addition, addition, automation automationof ofprocesses processesidentified identifiedas ascrucial crucial for for cash cash management management should should consider consider audit audit and andcompliance complianceprocesses processesthat thatcause causesignifisignificant cant delays delays or or confusion confusion around around transactransactions tions and and cash cash flows. flows. Finally, Finally, for for bank bank treasurers treasurers who who want want to to get get ahead ahead in in terms terms of of decision decision making making in in times times like like this, this, aa good good starting starting point point will will be be to to strengthen strengthen collaboration collaboration with with the the risk risk team. team. With With their their assistance, assistance, the the treasury treasury team team can can run run financial financial scenarios/models scenarios/models with with aa clear clear sense sense of of the the bank’s bank’s exposure exposure to to interest interest rate rate risk, risk, exchange exchange rate rate risk risk and and inflationary inflationary risk risk and and the the extent extent to to which which they they can can be be hedged. hedged. Although Although many many are are hedging hedging by by staying staying at at the the short short earned earned of of the the yield yield curve, curve, these these scenario scenario analysis analysis taking taking into into account account the the entire entire risk risk landscape landscape provides provides useful useful insights. insights. As As the the country country and and the the world world in in general general suffer suffer the the impact impact and and consequences consequences of of Covid-19, Covid-19, high high inflation, inflation, increasing increasing interest interest rates, rates, high high energy energy prices prices and and geopolitical geopolitical tensions, tensions, treasurers treasurers must must cope cope with with the the uncertainties uncertainties and and prepare prepare for for changes changes in in the the way waythey theyoperate operateififrequired. required.Remember Rememberthat that the the main main reason reason of of business business bankruptcy bankruptcy isis in in the the area area of of cash cash management. management. Therefore, Therefore, treasurers treasurers need need to to keep keep their their companies companies surviving surviving by by meeting meeting operational operational needs needs by by ensuring ensuring the the availability availability of of the the necessary necessary “blood” “blood” –– cash. cash.

Author: Grace Isaac-Aryee Treasurer FBNBank Ghana

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Cash is King :Time to build a strong cash management culture

Opinion/Analysis INVESTMENT TIMES

Corporate governance and stakeholders value system (Part 1)

Corporate Corporate orporate Governance Governance Governance(CG (CG) (CG) )is isisessential essential essentialfor for for Corporate Governance (CG) is essential for Corporate Governance (CG)is the the the survival survival and and sustenance sustenance of of any any corporate corporate the survival and sustenance of any corporate thesurvival survivaland andsustenance sustenanceof ofany anycorporate corporate organisation organisation organisation and and its its positive positive impacts impacts in in the the organisation and its positive impacts in the organisationand andits itspositive positiveimpacts impactsin inthe the long long long run, run, far far outweigh outweigh whatever whatever could could be be long run, far outweigh whatever could be longrun, run,far faroutweigh outweighwhatever whatevercould couldbe be regarded regarded regarded as as its its downside, downside, when when properly properly regarded as its downside, when properly regardedas asits itsdownside, downside,when whenproperly properly implemented. implemented. implemented. implemented. implemented. There There There could could be be many many views views on on the the definition definition There could be many views on the definition Therecould couldbe bemany manyviews viewson onthe thedefinition definition of of of CG CG but but according according to to (John (John Kyriazoglou, Kyriazoglou, of CG but according to (John Kyriazoglou, ofCG CGbut butaccording accordingto to(John (JohnKyriazoglou, Kyriazoglou, 2020), 2020), 2020), Corporate Corporate governance, governance, in in general general 2020), Corporate governance, in general 2020), Corporate Corporate governance, governance, in in general general terms, terms, terms, refers refers to to the the body body of of guidelines, guidelines, terms, refers to the body of guidelines, terms, refers refers to to the the body body of of guidelines, guidelines, systems, systems, systems, policies, policies, procedures procedures and and practices practices systems, policies, procedures and practices systems,policies, policies,procedures proceduresand andpractices practices by by by which which private private corporations corporations and and public public by which private corporations and public bywhich whichprivate privatecorporations corporationsand andpublic public organisations organisations organisations are are structured structured and and govgovorganisations are structured and govorganisations are are structured structured and and govgoverned(2). erned(2). erned(2). For For most most institutions institutions of of public public interintererned(2). For most institutions of public intererned(2).For Formost mostinstitutions institutionsof ofpublic publicinterinterest, est, est, these these elements elements of of CG CG are are clearly clearly docudocuest, these elements of CG are clearly docuest,these theseelements elementsof ofCG CGare areclearly clearlydocudocumented, mented, mented, and and in in many many cases, cases, huge huge sum sum of of mented, and in many cases, huge sum of mented,and andin inmany manycases, cases,huge hugesum sumof of money money money spent spent in in institutionalizing institutionalizing them, them, but but money isisis spent in institutionalizing them, but moneyis isspent spentin ininstitutionalizing institutionalizingthem, them,but but the the the reality reality on on ground ground shows shows that that good good CG CG the reality on ground shows that good CG thereality realityon onground groundshows showsthat thatgood goodCG CG practices practices practices are are far-fetched. far-fetched. Among Among others, others, practices are far-fetched. Among others, practices are are far-fetched. far-fetched. Among Among others, others, these these these elements elements include, include, but but not not limited limited to, to, these elements include, but not limited to, theseelements elementsinclude, include,but butnot notlimited limitedto, to, corporate corporate corporate financial financial policies, policies, information information corporate financial policies, information corporate financial financial policies, policies, information information technology technology technology policies, policies, information information security security polpoltechnology policies, information security poltechnologypolicies, policies,information informationsecurity securitypolpol-

23 investmenttimesonline.com

icies, icies, icies, business business continuity, continuity, board board of of directors’ directors’ icies, business continuity, board of directors’ icies,business businesscontinuity, continuity,board boardof ofdirectors’ directors’ charters charters charters etc. etc. charters etc. chartersetc. etc. The The The key key objective objective of of CG CG to to ensure ensure transtransThe key objective of CG isisis to ensure transThekey keyobjective objectiveof ofCG CGis isto toensure ensuretranstransparency parency parency of of financial financial processes, processes, establish establish parency of financial processes, establish parency of of financial financial processes, processes, establish establish effective effective effective balance balance between between key key stakeholders stakeholders effective balance between key stakeholders effectivebalance balancebetween betweenkey keystakeholders stakeholders such such such as as the the shareholders shareholders and and the the regulators, regulators, such as the shareholders and the regulators, suchas asthe theshareholders shareholdersand andthe theregulators, regulators, set set set up up limits limits and and boundaries boundaries that that control control the the set up limits and boundaries that control the setup uplimits limitsand andboundaries boundariesthat thatcontrol controlthe the excesses excesses excesses of of shareholders shareholders and and managers, managers, excesses of shareholders and managers, excesses of of shareholders shareholders and and managers, managers, among among among others. others. among others. amongothers. others. Having Having Having been been in in the the corporate corporate setting setting for for Having been in the corporate setting for Havingbeen beenin inthe thecorporate corporatesetting settingfor for more more more than than 17 17 years, years, can can confirm confirm that, that, more than 17 years, can confirm that, morethan than17 17years, years,IIIIIcan canconfirm confirmthat, that, although, although, although, setting setting up up these these structures, structures, polipolialthough, setting up these structures, polialthough,setting settingup upthese thesestructures, structures,polipolicies cies cies and and controls controls take take time time and and huge huge capital capital cies and controls take time and huge capital ciesand andcontrols controlstake taketime timeand andhuge hugecapital capital outlay, outlay, outlay, implementing implementing themto them to to the the letter letter them to the letter isisis outlay, implementing outlay,implementing implementingthem tothe theletter letteris isaaaaa major major major hurdle hurdle for for most most institutions. institutions. For For major hurdle for most institutions. For major hurdle hurdle for for most most institutions. institutions. For For many, many, many, institutionalizing institutionalizing CG CG mere mere academacademmany, institutionalizing CG isisis mere academmany,institutionalizing institutionalizingCG CGis ismere mereacademacademic exercise exercise that that meant meant to to fulfil fulfil all all righrighicicic exercise that isisis meant to fulfil all righicexercise exercisethat thatis ismeant meantto tofulfil fulfilall allrighrighteousness teousness teousness demanded demanded by by their their regulators regulators or or teousness demanded by their regulators or teousnessdemanded demandedby bytheir theirregulators regulatorsor or other other other interested interested parties. parties. Many Many institutions’ institutions’ other interested parties. Many institutions’ otherinterested interestedparties. parties.Many Manyinstitutions’ institutions’ owners, owners, owners, managers, managers, etc etc either either do do not not underunderowners, managers, etc either do not underowners,managers, managers,etc etceither eitherdo donot notunderunderstand stand stand the the controls controls or or flagrantly flagrantly bypass bypass them them stand the controls or flagrantly bypass them standthe thecontrols controlsor orflagrantly flagrantlybypass bypassthem them for for for their their selfish selfish interests. interests. The The aim aim of of this this artiartifor their selfish interests. The aim of this artifortheir theirselfish selfishinterests. interests.The Theaim aimof ofthis thisartiarticle cle cle to to help help unravel unravel the the factors factors that that may may cle isisis to help unravel the factors that may cleis isto tohelp helpunravel unravelthe thefactors factorsthat thatmay may have have have contributed contributed largely largely to to these these defiant defiant have contributed largely to these defiant havecontributed contributedlargely largelyto tothese thesedefiant defiant behaviors behaviors behaviors and and how how they they can can be be mitigated mitigated behaviors and how they can be mitigated behaviorsand andhow howthey theycan canbe bemitigated mitigated against, against, against, at at least, least, by by institutions institutions who who are are against, at least, by institutions who are against,at atleast, least,by byinstitutions institutionswho whoare are genuine genuine genuine about about making making them them work. work. genuine about making them work. genuineabout aboutmaking makingthem themwork. work.

Corporate governance and stakeholders value system

A NEW THINKING

Exemplary CG practices are enshrined ininin Exemplary Exemplary CG CG practices practices are are enshrined enshrined the espoused value systems ofofof both the the the espoused espoused value value systems systems both both the the individuals within an institution and the individuals individuals within within an an institution institution and and the the institution itself. Espoused values are the institution institution itself. itself. Espoused Espoused values values are are the the stated and desired values ororor beliefs ofofof an stated stated and and desired desired values values beliefs beliefs an an entity – –person ororor institution. For an instientity entity –person person institution. institution. For For an an instiinstitution for instance, ititis enshrined ininin the tution tution for for instance, instance, itisis enshrined enshrined the the written core values statement, mission, and written written core core values values statement, statement, mission, mission, and and vision statements while for an individual, ititit vision vision statements statements while while for for an an individual, individual, isisthe intrinsic value, i.e. the beliefs ofofof the isthe the intrinsic intrinsic value, value, i.e. i.e. the the beliefs beliefs the the person person personthat that thatmake make makethe the theperson person persondo do dowhat what what he/she does largely. We also talk about the he/she he/she does does largely. largely. We We also also talk talk about about the the enacted values ofofof an institution. Enacted enacted enacted values values an an institution. institution. Enacted Enacted value isisthe real values ofofof an institution asasas value value isthe the real real values values an an institution institution perceived by members ofofof that institution. perceived perceived by by members members that that institution. institution. InInIn other words, enacted values are the real other other words, words, enacted enacted values values are are the the real real values ofofof that institution and not the stated values values that that institution institution and and not not the the stated stated ororor espoused values. For example, when an espoused espoused values. values. For For example, example, when when an an institution states integrity asasas one ofofof their institution institution states states integrity integrity one one their their core values, yet, the internal practices ofofof core core values, values, yet, yet, the the internal internal practices practices members ofofof that institution have nothing members members that that institution institution have have nothing nothing tototo do with integrity, CG practices ininsuch an do do with with integrity, integrity, CG CG practices practices insuch such an an institution will not be anything exceptioninstitution institution will will not not be be anything anything exceptionexceptional.al.al. ItItwill be selectively practiced suiting the Itwill will be be selectively selectively practiced practiced suiting suiting the the need ofofof the moment. Good CG practices need need the the moment. moment. Good Good CG CG practices practices are are areatatatthe the theheart heart heartofofofinstitutions institutions institutionswhose whose whose espoused values and their enacted values espoused espoused values values and and their their enacted enacted values values are ininin congruent. are are congruent. congruent. Allowing Allowing Allowingthe the theCompliance Compliance ComplianceTeam Team TeamFreeFreeFreedom tototo Operate dom dom Operate Operate Alignment ofofof the espoused values and the Alignment Alignment the the espoused espoused values values and and the the enacted values isisaisabedrock for a agood CG enacted enacted values values abedrock bedrock for for agood good CG CG practices. For many institutions, this isisis a aa practices. practices. For For many many institutions, institutions, this this huge task because talks are cheaper than huge huge task task because because talks talks are are cheaper cheaper than than actions. However, ititis The compliactions. actions. However, However, itisdoable. isdoable. doable. The The complicompliance department needs tototo be allowed tototo ance ance department department needs needs be be allowed allowed implement implement implementmeasures measures measuresfor for forthis this thisalignment alignment alignment without too many interferences from the without without too too many many interferences interferences from from the the executives. Interferences from the execuexecutives. executives. Interferences Interferences from from the the execuexecutives tives tivesshould should shouldbe be beininincongruent congruent congruentwith with withthe the the espoused values ofofof the organisation and espoused espoused values values the the organisation organisation and and not just tototo overrule the compliance initianot not just just overrule overrule the the compliance compliance initiainitiatives. The standard practice isisto allow the tives. tives. The The standard standard practice practice istoto allow allow the the head ofofof compliance tototo report directly tototo head head compliance compliance report report directly directly the board ofofof directors. This practice allows the the board board directors. directors. This This practice practice allows allows check and balances between the executive check check and and balances balances between between the the executive executive

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power and the activities ofofof compliance unit. power and the activities compliance unit. power and the activities compliance unit. Breaching this standard practice may result Breaching this standard practice may result Breaching this standard practice may result ininin weak compliance with policies that proweak compliance with policies that proweak compliance with policies that promotes good CG practices. motes good CG practices. motes good CG practices. Human isisis the weakest link ininin any system, Human the weakest link any system, Human the weakest link any system, especially where issues of security is paraespecially especiallywhere whereissues issuesofofsecurity securityisisparaparamount. Employing the services ofofof people mount. Employing the services people mount. Employing the services people with track record ofofof good value systems, with track record good value systems, with track record good value systems, conducting an extensive background check conducting an extensive background check conducting an extensive background check prior tototo employment isiscritical. This will not prior employment This will not prior employment iscritical. critical. This will not completely completely guarantee that an employee completelyguarantee guaranteethat thatan anemployee employee value value system will be sync with the valuesystem systemwill willbe beinininsync syncwith withthe the espoused values ofofof the company, ititit will, espoused values the company, will, espoused values the company, will, however, confirm an intention ininin the right however, confirm an intention the right however, confirm an intention the right direction ofofof hiring people ofofof values. Furtherdirection hiring people values. Furtherdirection hiring people values. Furthermore, organisations must constantly train more, organisations must constantly train more, organisations must constantly train and motivate their employees on best pracand motivate their employees on best pracand motivate their employees on best practices that align with the corporate values. tices that align with the corporate values. tices that align with the corporate values. Occasional mystery shopping isisis an added Occasional mystery shopping an added Occasional mystery shopping an added initiative for top management ororor even the initiative for top management even even the the initiative for top management non-executive directors tototo know how the non-executive non-executive directors directors know know how how the the public views their espoused values and how public public views views their their espoused espoused values values and and how how the employees ofofof the organisation are intethe the employees employees the the organisation organisation are are inteintegrating the organisation’s values into their grating grating the the organisation’s organisation’s values values into into their their daily activities. For institutions who claim daily daily activities. activities. For For institutions institutions who who claim claim that customers delight isisone ofofof their core that that customers customers delight delight isone one their their core core values, values, values, mystery mystery mystery shopping shopping shopping from from from an an an ‘aggrieved’ customer (a(a(a top executive, ororor a aa ‘aggrieved’ ‘aggrieved’ customer customer top top executive, executive, hired third party) over aaperiod will show ififif hired hired third third party) party) over over aperiod period will will show show customer service personnel have personalcustomer customer service service personnel personnel have have personalpersonalized ororor internalized the stated value. ized ized internalized internalized the the stated stated value. value.MysMysMystery shopping isisis aacheap tool that institutery tery shopping shopping acheap cheap tool tool that that instituinstitutions can employ tototo know how much ofofof tions tions can can employ employ know know how how much much their values are being breached ororor bypassed are being breached bypassed their their values values are being breached bypassed and by who. and by who. and by who. Measuring Corporate Values ininin Measuring Corporate Values Measuring Corporate Values Performance Appraisals Performance Appraisals Performance Appraisals ItItis not uncommon tototo see that corporate not uncommon see that corporate Itisis not uncommon see that corporate values are hardly integrated into organisavalues are hardly integrated into organisavalues are hardly integrated into organisations’ performance appraisal systems, espetions’ performance appraisal systems, espetions’ performance appraisal systems, especially where profit ‘by allallall means’ isisthe focus. cially where profit ‘by means’ focus. cially where profit ‘by means’ isthe the focus. AAparadigm shift ininin the process ofofof appraisshift the process appraisAparadigm paradigm shift the process appraisals for many organisations isisrequired. Instials for many organisations Instials for many organisations isrequired. required. Institutions should begin tototo incorporate values tutions should begin incorporate values tutions should begin incorporate values appraisal appraisal into the entire organisations’ appraisalinto intothe theentire entireorganisations’ organisations’ appraisal system. Managers should not only appraisal system. Managers should not only appraisal system. Managers should not only

Corporate governance and stakeholders value system

INVESTMENT TIMES

be interested in the financial targets or revebe interested ininin the financial targets ororor revebe be interested interested the the financial financial targets targets reverevenues but in how the target was met and frown nues but ininhow the target was met and frown nues nues but but inhow how the the target target was was met met and and frown frown at breaching the corporate values in meeting atatat breaching the corporate values ininin meeting breaching breaching the the corporate corporate values values meeting meeting those targets. those targets. those those targets. targets. Appreciate Appreciate Employees who promote the Appreciate AppreciateEmployees Employees Employeeswho who whopromote promote promotethe the the Espoused Corporate Values Espoused Corporate Values Espoused Espoused Corporate Corporate Values Values Organisations must make it to conOrganisations must make itita aitapriority priority tototo conOrganisations Organisations must must make make apriority priority conconstantly and publicly appreciate employees stantly stantly stantlyand and andpublicly publicly publiclyappreciate appreciate appreciateemployees employees employees who have been able to effectively integrate who have been able tototo effectively integrate who who have have been been able able effectively effectively integrate integrate the organisations’ values into their day to day the organisations’ values into their day tototo day the the organisations’ organisations’ values values into into their their day day day day activities, activities, even ifififthe the employees’ financial activities, activities,even even evenif the theemployees’ employees’ employees’financial financial financial targets targets are not met. Sometimes, financial targets targetsare are arenot not notmet. met. met.Sometimes, Sometimes, Sometimes,financial financial financial targets may not be met because of proven targets may not be met because ofofof proven targets targets may may not not be be met met because because proven proven refusals to compromise the values of refusals the refusals refusalstototocompromise compromise compromisethe the thevalues values valuesofofofthe the the company. For instance, a official, who company. For instance, a abank bank official, who company. company. For For instance, instance, abank bank official, official, who who refuses to cut corners or engages in shady refuses tototo cut corners ororor engages ininin shady refuses refuses cut cut corners corners engages engages shady shady deals just to meet a should also be deals just tototo meet a atarget target should also be deals deals just just meet meet atarget target should should also also be be rewarded for upholding the values of the rewarded rewarded rewardedfor for forupholding upholding upholdingthe the thevalues values valuesofofofthe the the company rather than penalizing him or her company rather than penalizing him ororor her company company rather rather than than penalizing penalizing him him her her for simply not meeting target without looking for simply not meeting target without looking for for simply simply not not meeting meeting target target without without looking looking at why he or she was not able to meet the atatat why he ororor she was not able tototo meet the why why he he she she was was not not able able meet meet the the target. I believe that in an environment where target. I believe that ininin an environment where target. target. I Ibelieve believe that that an an environment environment where where good CG is promoted, there would come a good CG isisis promoted, there would come a aa good good CG CG promoted, promoted, there there would would come come time when to walk away from a deal, no time time timewhen when whentototowalk walk walkaway away awayfrom from froma aadeal, deal, deal,no no no matter how lucrative it was, would be the matter how lucrative ititit was, would be the matter matter how how lucrative lucrative was, was, would would be be the the ideal thing to do. There are financial instituideal thing tototo do. There are financial instituideal ideal thing thing do. do. There There are are financial financial instituinstitutions who would rather walk away from lucrations who would rather walk away from lucrations tions who who would would rather rather walk walk away away from from lucralucrative deposits just because some seemingly tive deposits just because some seemingly tive tive deposits deposits just just because because some some seemingly seemingly non-essential documents could not be sightnon-essential documents could not be sightnon-essential non-essential documents documents could could not not be be sightsighted. ed. ed. ed. In InInInthe the article “Fighting Corruption the the thearticle article article“Fighting “Fighting “FightingCorruption Corruption Corruptionthe the the Celtel Way :: :Lessons from the Front Line”, Celtel Way Lessons from the Front Line”, Celtel Celtel Way Way :Lessons Lessons from from the the Front Front Line”, Line”, one of Celtel’s corporate values (espoused one ofofof Celtel’s corporate values (espoused one one Celtel’s Celtel’s corporate corporate values values (espoused (espoused and enacted) is “we are open, honest and and enacted) isisis “we are open, honest and and and enacted) enacted) “we “we are are open, open, honest honest and and transparent”(2). In their own words, “We transparent”(2). transparent”(2). transparent”(2). InInIntheir their theirown own ownwords, words, words,“We “We “We applied these values at all levels: from the applied these values atatat allallall levels: from the applied applied these these values values levels: levels: from from the the shareholders and the Board to a handbook shareholders and the Board tototo a ahandbook shareholders shareholders and and the the Board Board ahandbook handbook for every employee”(2). One of the ways they for every employee”(2). One ofofof the ways they for for every every employee”(2). employee”(2). One One the the ways ways they they enshrined this value into their dealings espeenshrined this value into their dealings espeenshrined enshrined this this value value into into their their dealings dealings espeespecially in Africa where 1 of every 4 cially ininin Africa where 11out out ofofof every 44africans africans cially cially Africa Africa where where 1out out every every 4africans africans was said to have paid bribe to access a was said tototo have paid bribe tototo access a aservice service was was said said have have paid paid bribe bribe access access aservice service by a report and where about 145 billion by a a2020 2020 report and where about 145 billion by by a2020 2020 report report and and where where about about 145 145 billion billion USD is lost annually to corruption (3), was to USD isislost annually tototo corruption (3), was tototo USD USD islost lost annually annually corruption corruption (3), (3), was was ensure that every dime paid to the governensure that every dime paid tototo the governensure ensure that that every every dime dime paid paid the the governgovernment machineries in any form is discussed ment machineries ininin any form isisis discussed ment ment machineries machineries any any form form discussed discussed and and approved by the BBoard and further and andapproved approved approvedby by bythe the theBBoard BBoard BBoardand and andfurther further further reported to the donor communities. The outreported tototo the donor communities. The outreported reported the the donor donor communities. communities. The The outout-

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come come any government “frontman” not come ofofofany any government “frontman” not comeof anygovernment government“frontman” “frontman”not not agreeing to these transparency clauses is for agreeing these transparency clauses agreeing tototo these transparency clauses isisfor agreeing these transparency clauses isfor for Celtel to walk away from the deal and it is a Celtel to walk away from the deal and it is Celtel to walk away from the deal and it is a Celtel to walk away from the deal and it isaa case closed! There are many other institutions case closed! There are many other institutions case closed! There are many other institutions case closed! There are many other institutions who have walked away from other lucrative who have walked away from other lucrative who have walked away from other lucrative who have walked away from other lucrative deals simply because they would not comprodeals simply because they would not comprodeals simply because they would not comprodeals simply because they would not compromise their values. This is major attributes mise their values. This major attributes mise their values. This isisone one major attributes mise their values. This isone one major attributes that many foreign investors are looking for that many foreign investors are looking for that many foreign investors are looking for that many foreign investors are looking for before they enter into any partnership. before they enter into any partnership. before they enter into any partnership. before they enter into any partnership. When institutions in an economy begin to When institutions an economy begin When institutions ininin an economy begin tototo When institutions an economy begin have the right mix between their values and have the right mix between their values and have the right mix between their values and have the right mix between their values and profit making activities, integrate their stated profit making activities, integrate their stated profit making activities, integrate their stated profit making activities, integrate their stated values with their day tototo day activities and putvalues with their day day values with their day to day activities and putactivities and putactivities and putvalues with their day day ting active measures in place to narrow the ting active measures in place to narrow the ting active measures in place to narrow the ting active measures in place to narrow the gaps between their espoused values and their gaps between their espoused values and their gaps between their espoused values and their gaps between their espoused values and their enacted values to achieve value congruency, enacted values to achieve value congruency, enacted values to achieve value congruency, enacted values to achieve value congruency, then a foundation will be built to accomthen a asolid solid foundation will be built tototo accomthen foundation will be built accomthen asolid solid foundation will be built accommodate whatever economic boom that may modate whatever economic boom that may modate whatever economic boom that may modate whatever economic boom that may be in the offing both for the organisations be ininin the offing both for the organisations be the offing both for the organisations be the offing both for the organisations and the economy at large. Good CG practices and the economy atatat large. Good CG practices and the economy large. Good CG practices and the economy large. Good CG practices are not just for the advantage of the compaare not just for the advantage ofofof the compaare not just for the advantage the compaare not just for the advantage the companies practicing them, but for the good of the nies practicing them, but for the good of the nies practicing them, but for the good the nies practicing them, but for the goodofof the public. public. public. public. In subsequent editions, we will discuss the InInIn subsequent editions, we will discuss the subsequent editions, we will discuss the subsequent editions, we will discuss the effects (positive and negative) of enacted or effects (positive and negative) ofofof enacted ororor effects (positive and negative) enacted effects (positive and negative) enacted practiced values on each of the elements of practiced values on each ofofof the elements ofofof practiced values on each the elements practiced values on each the elements the CG. the CG. the CG. the CG. Sources: Sources: Sources: Sources: 1.Fighting Corruption the Celtel Way: Lessons 1.Fighting Corruption the Celtel Way: Lessons 1.Fighting Corruption the Celtel Way: Lessons 1.Fighting Corruption the Celtel Way: Lessons from the front line, Worldbank, May 2005 from the front line, Worldbank, May 2005 from the front line, Worldbank, May 2005 from the front line, Worldbank, May 2005 2. Governance Controls, John 2.2.2. Corporate Corporate Governance Controls, John Corporate Governance Controls, John Corporate Governance Controls, John Kyriazoglou, Dec 2020. Kyriazoglou, Dec 2020. Kyriazoglou, Dec 2020. Kyriazoglou, Dec 2020. 3.BBC NEWS || Africa || The cost of corruption in 3.BBC NEWS Africa The cost ofofof corruption ininin 3.BBC NEWS | Africa | The cost corruption 3.BBC NEWS | Africa | The cost corruption Africa Africa Africa Africa Disclaimer: The views expressed are personal personal Disclaimer: The views expressed are personal Disclaimer: The views expressed are Disclaimer: The views expressed are personal views and doesn’t represent that of the media views and doesn’t represent that of the media views and doesn’t represent that of the media views and doesn’t represent that of the media house or institution the writer works. house institution the writer works. house ororor institution the writer works. house institution the writer works.

About the writer George Babafemi, Executive Director, eTranzact Ghana Ltd Contact: babafemigeorge@ya hoo.com, Cell: +233 244285147

Corporate governance and stakeholders value system

A NEW THINKING

Could cost sharing sustain the Ghana National Health Insurance Scheme?

The

University of Ghana Business School (UGBS) has a strategic goal to establish an environment that fosters revolutionary and policy relevant research for development. Prof Anthony Afful-Dadzie, an Associate Professor and Head of the Department of Operations and Management Information Systems at UGBS has collaborated with other researchers to undertake an investigation on whether cost sharing can sustain the Ghana National Health Insurance Scheme.

By: Anthony Afful-Dadzie,Eric Afful-Dadzie & Seth Mensah

Such has been the fate of the Ghana National Health Insurance Scheme (NHIS) which was established in 2003 to replace the then repressive out-of-pocket payment system. The NHIS has been in deficit since 2009 which threatens its survival. As a with with with this this thisgreat great great impact impact impacton on onboth both boththe the theemployer employer employer result, a number of interventions have and and andbeen employee. employee. employee. proposed, one of which is cost sharing. What What What the the the government government government and and and organizations organizations organizations did did didProf. in in inthe the theAfful-Dadzie peak peak peakof of ofCOVID-19 COVID-19 COVID-19 and his team of The The Theresearchers emergency emergency emergencyargue of of ofCOVID-19 COVID-19 COVID-19 placed placed aaahercuhercuhercuthat costplaced sharing, where lean lean lean burden burdenon on onleaders leaders leaders all allaround around around the theglobe globe globe as as as aburden subscriber pays a all portion of the his/her total its its its presence presence presence became became became inimical inimical inimical to to to socio-ecosocio-ecosocio-ecomedical cost, can be considered as a form nomic nomic nomic growth growth growth and and and productivity. productivity. Many Many Many–lives lives lives of an indirect taxproductivity. tied to utilization the were were were lost lost lost by by by its its its incessant incessant incessant evolving evolving evolving nature nature nature more a subscriber utilizes the insurance because because because medical medical medical professionals professionals professionals could could couldtax not not not the lay lay lay benefit package, the more their their their fingers fingers fingers on on on its its its metamorphosis metamorphosis metamorphosis entirely. entirely. entirely. subscriber pays – and thus can serve as an

In their paper, the researchers note that people in developing countries typically live below the average poverty line and thus see health insurindirect control measure on utilization and ance as a basic necessity. The The Theclaim COVID-19 COVID-19 COVID-19 effect effect effect has has has been been enormous enormous this this this cost. With this inbeen mind,enormous the researchincludes includes includes low low production production and and andthe general general general impact impact impact ers setlow outproduction to determine optimal cost Consequently, many developing countries on on on sharing the the the economy. economy. economy. During During During the the the height height height of of of the the the rate which when employed could have various health insurance schemes to cater positive positive positive confirmed confirmed COVID-19 COVID-19 cases cases casesin in inwithout Ghana, Ghana, Ghana, help confirmed sustain theCOVID-19 NHIS financially for the health needs of their people. The all all all social social social gatherings gatherings gatherings were were were restricted restricted restricted by by by the the the negatively affecting enrolment. researchers note that a growing challenge government. government. government.Movement Movement Movementof of ofworkers workers workerswere were werealso also also facing such schemes is the issue of sustainabili- restricted, restricted, restricted, and and and institutions institutions institutions such such such as as as education education education To begin with, Prof Afful-Dadzie and his ty. and and andteam religions religions religions bodies bodies bodies were were were all all all totally totally totally closed closed closed collected 1814 responses across

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Could cost sharing sustain the Ghana National Health Insurance Scheme?

INVESTMENT TIMES

health health healthsector sector sectorhave have haveto to torisk risk risktheir their theirlives lives livesto to towork work work assiduously assiduously assiduously to to to save save save the the the lives lives lives of of of the the the affected affected affected Ghana from a carefully designed questionpeople. people. people. naire on various cost sharing rates and

down down downincluding including includingour our ourborders. borders. borders.The The Thegovernment government government has has hasto to torelieve relieve relievecitizens citizens citizensby by byproviding providing providingsubsidies subsidies subsidies on on onelectricity electricity electricityand and andwater water waterbills bills billsfor for forsome some somemonths months months rather rather ratherincreasing increasing increasinggovernment government governmentexpenditure. expenditure. expenditure. COVID-19 COVID-19 COVID-19encouraged encouraged encouragedsole sole soleproprietorship proprietorship proprietorshipas as as many many many persons persons persons resorted resorted resorted to to to survival survival survival business business business ventures ventures venturesto to tocontrol control controland and andameliorate ameliorate amelioratethe the thesituasituasituation. tion. tion. Moreover, Moreover, Moreover, organizations organizations organizations were were were not not not left left left out out outin in inthe the thecalamity, calamity, calamity,employers employers employershave have haveto to tostratestratestrategize gize gize to to to protect protect protect both both both the the the employees employees employees and and and the the the employer employer employer to to to remain remain remain in in in business. business. business. Employers Employers Employers had had had to to to continue continue continue to to to pay pay pay for for for the the the medical medical medical expenses expenses expenses of of of employees employees employees who who who were were were affected affected affected financially financially financiallyby by byCOVID-19. COVID-19. COVID-19.Unfortunately, Unfortunately, Unfortunately,some some some employees employees employees lost lost lost their their their lives lives lives whiles whiles whiles others others others also also also lose lose losetheir their theirjobs jobs jobsbecause because becausetheir their theirschedule schedule schedulewas was wasnot not not needed needed neededat at atthe the thetime. time. time. There There There was was was limited limited limited access access access to to to health health health care care care and and and delay delay delayin in intreatment treatment treatmentdue due dueto to tothe the therisk risk riskin in inCOVID-19 COVID-19 COVID-19 cases. cases. cases. Some Some Some workers workers workers especially especially especially those those those in in in the the the

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people’s willingness to use the NHIS given There There There were weresensitization sensitization sensitization programs programs programsto to tocreate create create the cost were sharing rate. awareness awareness awarenessof of ofstaff staff staffon on onthe the theoutbreak outbreak outbreakand and andthe the the necessary necessary necessary steps steps to to totake take take in in order order order not not not to to tobe be be Their analysissteps revealed thatin a 5% cost sharaffected affected affected and and and if if if contracted contracted contracted how how how to to to take take take care care care ing rate would have kept the scheme in of of ofone’s one’s one’s life life lifeand and and2007 the the thepeople people people around. around. around. surplus between and 2015. In addition, the 5% cost sharing rate would have Again, Again, Again, some some someno organization’s organization’s organization’s introduced introduced introduced the the led to virtually change in enrolment andthe shift-system shift-system shift-system to to to enable enable enable employees employees employees work work work spaspaspawould have reduced utilization rate by cious cious cious15%. office office office to toput help help help sustain sustain the the the employer employer employer in in about Toto it sustain in simple terms, the in business business business in in in addition addition addition to to to virtual virtual virtual office office office and and and thought of an NHIS subscriber paying working working working from from from home home home and and andholding holding holding meetings meetings meetings GHS5 out of a total medical bill of GHS100 through-electronic through-electronic through-electronic platforms platforms platforms such such such as as Zoom, Zoom, would have been sufficient to keepasZoom, the Microsoft, Microsoft, Microsoft, Cisco Cisco CiscoWebex, Webex, Webex, and and andthis Facebook Facebook Facebook etc. etc. etc. scheme in surplus. Intuitively, happens because the fear of paying out the cost In In In furtherance, furtherance, furtherance, employer’s employer’s employer’s expenditure expenditure sharing amount helps to reduce expenditure wasteful increased increased increased because because because extra extra extra funds funds funds had had had to to to be be be utilization of the NHIS scheme in addition spent spent to to to reengineer reengineer reengineer the the the work work workamount place place place to to to tospent benefiting from the cost sharing ensure ensure ensure that that that the the the workplace workplace workplace is is is safe safe safe by by by the the the purpurpurpaid by the subscriber in the event of use. chasing chasing chasingof of ofthermometer thermometer thermometer guns, guns,hand hand handsanitizsanitizsanitizInterestingly perhaps, the guns, researchers also ers, ers, ers, nose nose nose mask,veronica mask,veronica mask,veronica buckets buckets buckets etc. etc. etc. found that women in general have higher enrolment and utilizes health insurance Groups Groups Groups and and individuals’ individuals’ individuals’ social social lives lives lives were were were more than and men when under social cost sharing. affected affected affectedbecause because becausethere there therewere were wererestrictions restrictions restrictionson on on movements movements movementsby by bythe the thegovernment, government, government,the the themost most most

Could cost sharing sustain the Ghana National Health Insurance Scheme?

remembered one in Ghana was the three (3) remembered rememberedone onein inGhana Ghanawas wasthe thethree three(3) (3) weeks partial lock down in Greater Accra, weeks weeks partial partial lock lock down down in in Greater Greater Accra, Accra, Tema, Kasoa and Greater Kumasi. The lockTema, Tema, Kasoa Kasoa and and Greater Greater Kumasi. Kumasi. The The locklockdown confinement measures made people down down confinement confinement measures measures made made people people feel bored and isolated which negatively feel feel bored bored and and isolated isolated which which negatively negatively affected their psychological health. affected affectedtheir theirpsychological psychologicalhealth. health. Effects Of Covid-19 On The Employer Effects EffectsOf OfCovid-19 Covid-19On OnThe TheEmployer Employer March,2021 marks one year since the beginMarch,2021 March,2021marks marksone oneyear yearsince sincethe thebeginbeginning of state-mandatory stay-at-home orders ning ningof ofstate-mandatory state-mandatorystay-at-home stay-at-homeorders orders and workplace shutdowns due to the global and andworkplace workplaceshutdowns shutdownsdue dueto tothe theglobal global COVID-19 in Ghana. COVID-19 COVID-19in inGhana. Ghana. Some employers most especially those in the Some Someemployers employersmost mostespecially especiallythose thosein inthe the micro, small enterprises entirely shut down micro, micro, small small enterprises enterprises entirely entirely shut shut down down their businesses to protect the lives of the their their businesses businesses to to protect protect the the lives lives of of the the employees and also to save cost. While others employees employees and andalso alsoto tosave savecost. cost.While Whileothers others By Serkan Arslanalp, Barry Eichengreen and had their business collapsed due to the panhad had their their business business collapsed collapsed due due to to the the panpanChima Simpson-Bell demic. demic. demic. TheheUS USdollar dollarhas haslong longplayed playedananoutsized outsized Moreso, employer’s expenditure increased Moreso, Moreso, employer’s employer’s expenditure expenditure increased increased role in global markets. It continues to do so due to measures put in place to ensure there due due to tomeasures measures put putin inplace place to toensure ensure there even as the American economy has there been safety at the workplace. This included the isis isproducing safety safetyat atthe the workplace. This included included the the a workplace. shrinking This share of global purchasing of thermometer guns, hand sanipurchasing purchasing of of thermometer thermometer guns, guns, hand hand sanisanioutput over the last two decades. tizers, nose mask, veronica buckets etc. tizers, tizers,nose nosemask, mask,veronica veronicabuckets bucketsetc. etc. But although the currency’s presence in Other employers suffered loss of revenue Other Other employers employers suffered loss loss of of revenue revenue global trade, suffered international debt, and because patronage was low and for others because because patronage patronage was was low low and and for for others others non-bank borrowing still far outstrips the US there was no patronage. One cannot forget there there was was no patronage. patronage. One One cannot cannot forget forget share of no trade, bond issuance, and internaalso employees who are still having also also employees employees who who are are still still having having tional borrowing and lending, central banks long-term effects experiencing greater levels long-term long-term effects effectsexperiencing experiencing greater greater levels aren’t holding the greenback in levels their of depression or anxiety as there are many of ofreserves depression depression or or anxiety anxiety as as there there are are many many to the extent that they once did. reports of higher absence rates and lower reports reports of higher higher absence rates rates and anddollar’s lower lower As theof Chart of theabsence Week shows, the productivity all due to COVID-19. These have productivity productivity all all due due to to COVID-19. COVID-19. These These have have share of global foreign-exchange reserves affected the financial base of most employers affected affected the thefinancial financial base base ofmost most employers fell below 59 percent in of the finalemployers quarter of since they were hit with unbudgeted expendisince since they they were were hit hit with with unbudgeted unbudgeted expendilast year, extending a two-decadeexpendidecline, ture to take care of COVID-19 positive ture ture to to take take careIMF’s of of COVID-19 COVID-19Composipositive positive according to care the Currency employees’ medical expenses. Besides these employees’ employees’ medical medical expenses. expenses. Besides Besides these these tion of Official Foreign Exchange Reserves problems, employers have currently have the problems, problems, employers employershave havecurrently currentlyhave havethe the data. difficult of ensuring that their operations difficult difficult of of ensuring ensuring that that their their operations operations stand the test of time. This situation has stand stand the the test test of of time. time. This This situation situation has has necessitated some employers to seek for necessitated necessitated some some employers employers to to seek seek for for financial support to revamp their operations. financial financialsupport supportto torevamp revamptheir theiroperations. operations. In addition, the instances of unfair terminaIn In addition, addition, the the instances instances of of unfair unfair terminatermination by some employers putting pressure tion tion by by some some employers employers isis is putting putting pressure pressure on the few employees at post. Some employon onthe thefew fewemployees employeesat atpost. post.Some Someemployemployees whose jobs were classified as non–essenees eeswhose whosejobs jobswere wereclassified classifiedas asnon–essennon–essential had to look for alternate jobs because of tial tialhad hadto tolook lookfor foralternate alternatejobs jobsbecause becauseof of unfair termination by their employers, the unfair unfair termination termination by by their their employers, employers, the the legal issues surrounding these unfair terminalegal legalissues issuessurrounding surroundingthese theseunfair unfairterminatermination challenge for many organizations and tion tionisis isaaachallenge challengefor formany manyorganizations organizationsand and their HRs. their theirHRs. HRs.

A NEW THINKING Employees are now mindful of their health Employees Employeesare arenow nowmindful mindful of oftheir their health health and therefore adhering to all COVID-19 proand andtherefore thereforeadhering adheringto toall allCOVID-19 COVID-19proprotocols by regular use of nose mask, hand tocols tocols by by regular regular use use of of nose nose mask, mask, hand hand sanitizers, regular washing of hands, distancsanitizers, sanitizers,regular regularwashing washingof ofhands, hands,distancdistancing among others. However, the evidence ing ingamong amongothers. others.However, However,the theevidence evidenceisis is that for many employees, the protocols are that thatfor formany manyemployees, employees,the theprotocols protocolsare are no longer needed since His Excellency the no no longer longer needed needed since since His His Excellency Excellency the the president Nana Addo Dankwa Akuffo Addo president presidentNana NanaAddo AddoDankwa DankwaAkuffo AkuffoAddo Addo relaxed the COVID-19 protocols and relaxed relaxed the the COVID-19 COVID-19 protocols protocols and and declared the wearing of face mask non-mandeclared declaredthe thewearing wearingof offace facemask masknon-mannon-mandatory. datory. datory.

Dollar dominance and the rise of nontraditional What should the HR Function in organiWhat Whatshould shouldthe theHR HRFunction Functionin inorganiorganireserve currencies

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zations do going forward? zations zationsdo dogoing goingforward? forward?

Although COVID-19 has many negativities Although Although COVID-19 COVID-19 has has many many negativities negativities In an example of the broader shift in the comassociated with it, COVID-19 has push the associated associated with with it, it, COVID-19 COVID-19 has has push push the the position of foreign exchange reserves, the boundary of innovativeness and creativity of boundary boundaryof ofinnovativeness innovativenessand andcreativity creativityof of Bank of Israel recently unveiled a new strategy individuals thereby creating job opportuniindividuals individualsthereby therebycreating creatingjob jobopportuniopportunifor its more than $200 billion of reserves. ties most especially for those in the technolties tiesmost mostespecially especiallyfor forthose thosein inthe thetechnoltechnolBeginning this year, it will reduce the share of ogy value chain. Many families were re-unitogy ogyvalue valuechain. chain.Many Manyfamilies familieswere werere-unitre-unitUS dollars and increase the portfolio’s allocaed because there were restrictions on moveed edbecause becausethere therewere wererestrictions restrictionson onmovemovetions to the Australian dollar, Canadian dollar, ments. Several persons have become perments. ments. Several Several persons persons have have become become perperChinese renminbi and Japanese yen. sonal-hygiene conscious and mindful of sonal-hygiene sonal-hygiene conscious conscious and and mindful mindful of of their health by adhering to the COVID-19 their their health health by by adhering adhering to to the the COVID-19 COVID-19 As we document in a recent IMF working protocols. protocols. protocols. paper, the reduced role of the US dollar hasn’t been matched by increases in the shares of Ghana Health Service (GHS) has admonished Ghana GhanaHealth HealthService Service(GHS) (GHS)has hasadmonished admonished the other traditional reserve currencies: the that this pandemic has come to stay so all that thatthis thispandemic pandemichas hascome cometo tostay stayso soall all euro, yen, and pound. Moreover, while there and sundry must not relent in adhering to all and andsundry sundrymust mustnot notrelent relentin inadhering adheringto toall all has been some increase in the share of the laid down safety protocols. Organizathe the laid laid down down safety safety protocols. protocols. OrganizaOrganizareserves held in renminbi, this accounts for tions have to put in strategies for adaptable tions tionshave haveto toput putin instrategies strategiesfor foradaptable adaptable just one quarter of the shift away from dollars working conditions and must have flexible working working conditions conditions and and must must have have flexible flexible in recent years, partly due to China’s relatively working conditions. Subsequently, organizaworking workingconditions. conditions.Subsequently, Subsequently,organizaorganizaclosed capital account. Moreover, an update tions must sharpen the critical skills of tions tions must must sharpen sharpen the the critical critical skills skills of of of data referenced in the working paper shows employees to be able to meet their target. employees employeesto tobe beable ableto tomeet meettheir theirtarget. target. that, as of the end of last year, a single counFurthermore, organizations must refer HR Furthermore, Furthermore, organizations organizations must must refer refer HR HR try—Russia—held nearly a third of the world’s Legal issues to legal experts for advice when Legal Legalissues issuesto tolegal legalexperts expertsfor foradvice advicewhen when renminbi reserves. becomes necessary most especially in the itititbecomes becomesnecessary necessarymost mostespecially especiallyin inthe the area of employee job rotation, job security area areaof ofemployee employeejob jobrotation, rotation,job jobsecurity security and the termination of non-essential job and and the the termination termination of of non-essential non-essential job job roles. roles. roles. The HR function should continue to sensitize The TheHR HRfunction functionshould shouldcontinue continueto tosensitize sensitize employee to embrace personal hygiene and employee employeeto toembrace embracepersonal personalhygiene hygieneand and continue to observe the COVID-19 protocols continue continueto toobserve observethe theCOVID-19 COVID-19protocols protocols for their personal safety even as many orgafor fortheir theirpersonal personalsafety safetyeven evenas asmany manyorgaorganizations and economies around the world nizations nizations and and economies economies around aroundthe the world world relax the COVID-19 protocols. relax relaxthe theCOVID-19 COVID-19protocols. protocols. AUTHOR: AUTHOR: AUTHOR:Juliana Juliana JulianaAmoah Amoah Amoah Deputy Deputy Deputy Human Human Human Resource Resource Resource Manager Manager Manager Forest Forest Forest Services Services Services Division, Division, Division,Forestry Forestry ForestryCommission Commission CommissionGhana Ghana Ghana

Dollar dominance and the rise of nontraditional reserve currencies

INVESTMENT TIMES

also have bilateral swap lines with the Federal Reserve. This, it can be argued, creates confidence that their currencies will hold their value against the dollar.

In an example of the broader shift in the composition of foreign exchange reserves, the Bank of Israel recently unveiled a new strategy for its more than $200 billion of reserves. Beginning this year, it will reduce the share of US dollars and increase the portfolio’s allocations to the Australian dollar, Canadian dollar, Chinese renminbi and Japanese yen.

By contrast, the currencies of smaller economies that haven’t traditionally figured prominently in reserve portfolios, such as the Australian and Canadian dollars, Swedish krona and South Korean won, account for three quarters of the shift from dollars. Two factors may help to explain the movement into this set of currencies: • These currencies combine higher returns with relatively lower volatility. This appeals increasingly to central bank reserve managers as foreign exchange stockpiles grow, raising the stakes for portfolio allocation.

At the same time, the importance of this factor can be questioned. The nontraditional currencies tend to float. In practice, they fluctuate widely against the dollar. And their issuers have rarely if ever drawn on their bilateral swap lines with the Fed. A regression analysis shows that having a Fed swap line is associated with a 9 percentage point increase in the dollar share of the recipient’s reserves. This may indicate that swap lines are an imperfect substitute for actual reserves. A more plausible explanation is that these nontraditional reserve currencies are issued by countries with open capital accounts and track records of sound and stable policies. Important attributes of reserve currency issuers include not just economic weight and financial depth, but also transparent and predictable policies. In other words, the stability of the economy and policy decisions matter for international acceptance. A regression analysis of global reserve currency shares confirms that a higher economic risk premium, measured by the cost of using credit derivatives to insure against default, reduces a currency’s share in global reserves. Evidently, holders favor the currencies of countries known for good governance, economic stability and sound finances.

• New financial technologies—such as automatic market-making and automated liquidity management systems—make it cheaper and easier to trade the currencies of smaller economies. In some cases, the issuers of these currencies

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Dollar dominance and the rise of nontraditional reserve currencies

INVESTMENT TIMES

eTranzact calls for more investment in digital payment ecosystem

EExecutive xecutive Director Director for for eTranzact eTranzact Ghana, Ghana,

George GeorgeBabafemi, Babafemi,says saysthough thoughthe thecountry country has hasgood goodinfrastructure infrastructuretotosupport supportitsitsdigitidigitization zationagenda, agenda,there thereisisthe theneed needfor forcompacompanies niesininthe thedigital digitalpayment paymentindustry industrytotoinvest invest more moreinto intotechnology technologyand andsecurity securityofoftheir their operations. operations. He Hesaid saidtotoensure ensurethat thatthe theindustry industrysustains sustains the thesuccess successand andgrowth, growth,there thereshould shouldalso alsobe be more morepublic publiceducation, education,and andeffective effectiveregularegulation tionfrom fromthe thecentral centralgovernment governmenttotolet letthe the public publicknow knowand andunderstand understandthe thedigital digitalpaypayment mentecosystem ecosystemand andititbenefits. benefits. “When “WhenI Italk talkabout aboutregulating regulatingthe theindustry, industry,I I remember rememberback backthen theninin2005, 2005,ititwasn’t wasn’tan an interesting interesting industry. industry. People People didn’t didn’t underunderstand standwhat whatwe wewere weresaying. saying.eTranzact eTranzactwas was the thefirst firsttotostart startmobile mobiletransaction transactionininthe the country countryon onthe thesmart smartphone, phone,that’s that’sfrom fromyour your bank bankaccount accounttotoanybody anybodyinin2005. 2005.When Whenwe we started, started,we wewere werenot notunderstood understoodbut buta alot lothas has gone goneinto intothat thatspace, space,many manyinvestors investorsare arenow now coming cominginto intothe thespace. space.So, So,there therewas wasa aneed need

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Mr. George Babafemi Executive Director etransact

for forgovernment governmenttotocome comeinintotoregulate regulatethat that space spaceeffectively effectivelysosothat thatcompanies companiescannot cannot just justcome comeand anddo doanything anythingthey theylike likewithin withinthe the space,” space,”he hesaid. said. Though, Though,he hesaid saidthe thecountry countryhas hasenough enoughreguregulations lationsininthe theindustry, industry,there thereshould shouldbe bemore more education educationabout aboutwhat whatthe theregulation regulationentails, entails, theindustry industry saying saying“as “asititstands standsnow nowititisisonly onlythe players playerswho whoknow knowmuch muchabout aboutthe theregulation regulation .”.” “How “Howmany manyindividuals individualsknow knowabout aboutthe thereguregulations lationsofofthis thisindustry industryand andknow knowwho whothey theycan can complain complainto, to,orordeal dealwith withand andalso, also,totoknow know which whichcompanies companiesare arelicensed licensedtotooperate operateinin the theindustry industryand andininthe thecountry? country?The Thepublic public needs needstotoknow knowabout aboutthe theregulations regulationsand andthat that will willstart startwith witheducation,” education,”Mr. Mr.Babafemi Babafemisaid. said. He, He,however, however,called calledon onallallstakeholders stakeholderstotostart start educating educatingthe thepublic publicon onthe thenature natureofofthe the industry industrybut buturged urgedgovernment governmenttotolead leadthat that agenda. agenda. “Every “Everyindustry industryplayer playershould shouldget getinvolved involvedinin the thepublic publiceducation, education,especially especiallyininthe thearea areaofof

eTranzact calls for moreinvestment in digital payment ecosystem

A NEW THINKING

security security since since that’s that’s one one ofof the the things things that that demotivate demotivatethe thepublic publicfrom fromengaging engagingactively actively ininthat thatspace,” space,”he headded. added. Pioneering Pioneeringpayment paymentsystem systemininGhana Ghana He Hesaid saideTranzact eTranzactisisa apioneer pioneerininthe thedigital digital payment paymentindustry industryininthe thecountry countryasasitithas hasbeen been around aroundsince sincethe thelast last17 17years, years,providing providingpaypayment ment services services for for banks banks even even atat the the time time people peopledo donot nothave havemuch muchideas ideasabout aboutit.it. “We “We have have allall these these years years been been providing providing services servicesfor forcompanies, companies,individuals individualsand andbanks banks who who want want toto go go digital digital with with their their financial financial services. services. As Asatattoday, today,everyone everyonehas hassomething somethingtotodo do with withreceiving receivingorormaking makingpayment paymentfor forgoods goods and andservices. services.eTranzact eTranzactplays playsininthe thespace spaceasasa a payment paymentaggregator aggregatorand andasasan anintermediary intermediary between betweena apayee payeeand andthe thereceiver. receiver.He Hesaid saidhis his company company develops develops customized customized applications applications that thatmake makepayments paymentsvery veryconvenient convenientand andeasy easy for foritsitscustomers. customers.Sometime Sometimepeople peopledon’t don’teven even know knowwhat whatthey theyneed needbut butwhen whenthey theytalk talktotous, us, we wewill willproffer profferand anddevelop developsolution solutionthat thatisis custom-made custom-madeand andmost mostsuitable suitablefor forthem, them,he he said. said. When Whenasked askedhow howthe theindustry industryhas hasbeen beenperperforming formingover overthe theyears, years,Babafemi Babafemisaid said“We “Weare are still stillhere, here,the thefact factthat thatpeople peopleare aregetting gettingtoto know knowabout abouteTranzact eTranzactmore moreand andmore moremeans means that thatthe theindustry industry isisopening openingup upbut butthere thereare are rooms roomsfor forimprovements.” improvements.” He Heexplained explainedthat thatthe thethings thingsthat thatcan canalways always make makethe theindustry industrybetter betterwhich whicheTranzact eTranzacthas has been beendoing doingnow nowisiseducating educatingthe thepublic publicon onthe the nitty nittygritty grittyofofthe theindustry. industry. He Hesaid saidmany manypeople peoplejust justhave havean anidea ideaofofwhat what isishappening happeningbut butthey theyreally reallydon’t don’tknow knowhow howtoto dig diginto intothem. them. He Hecited, cited,for forinstance, instance,the thee-levy e-levywhich whichjust justgot got into intothe thespace, space,saying sayingeven eventhough thoughthere therehas has been beenpublic publiceducation educationon onelevy, elevy,many manypeople people especially especiallybusinesses businessesreally reallydon’t don’tknow knowhow how they theycan cantake takeadvantage advantageofofit.it.He Hesaid said“all “allthey they know knowisisthat thatyou youare arecharged chargede-levy e-levywhen whenyou you pay paymoney moneythrough throughyour yourmobile mobilemoney moneybut but

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then thenthere thereare arelegitimate legitimateexception exceptionsuch suchthat that IfIfI’m I’mpaying payinga abusiness businessentity entitywho whoisisregisregistered teredwith withGhana GhanaRevenue RevenueAuthority Authorityasasan an income incometax taxentity, entity,I Iwouldn’t wouldn’tneed needtotopay pay e-levy. e-levy.That’s That’ssomething somethingthat thatallallbusinesses businesses need needtotoknow knowand andthis thisshould shouldhelp helpbusinessbusinesseseswho whoare arenot noton onGRA GRAregister registertotoregularize regularize

“Every industry player should get involved in the public education, especially in the area of security since that’s one of the things that demotivate the public from engaging actively in that space,” asastax taxpaying payingentity. entity. He Hesaid saideTranzact eTranzactisisresolved resolvedtotoeducate educatethe the public publicon ondigital digitalpayment paymentservice serviceand andhow how individuals individualsand andbusinesses businessescan canleverage leveragetoto grow, grow,stressing stressingthat thatbusinesses businesseswho whowant wanttoto digitize digitizetheir theirproducts productsororservices servicesneed needtoto know knowwhich whichofofthe theplethora plethoraofofpayment paymentsolusolutions tionstotoleverage leverageon. on. He Headded addedthat thatmany manypeople peoplehave havethe themindmindset setthat thatdigitization digitizationofoftheir theirpayment paymentservices services isisvery veryexpensive, expensive,however, however,this thisisisnot notalways always true. true.ItItdoesn’t doesn’thave havetotocost costa afortune fortunetotodigidigitize tizethe thepayment paymentservices servicesofofany anycompany. company. Addressing Addressingthat, that,he hesaid saideTtranzact eTtranzactcan canproprovides videsservices servicesfor forbusinesses businessesalmost almostatatno no initial initialcost costofofimplementation. implementation.We Wework workwith with banks banksand andother otherinstitutions institutionsusing usingthis thismodel model and andfocuses focusesofoffee feesharing sharingbecause becausewe wedon’t don’t want wanttotomake makepayment paymentservices servicessosoexpensive. expensive. We Wewant wanteverybody everybodytotobe beincluded. included.We Wecall callitit financial financialinclusion. inclusion.ItIthas hastotobe beeasily easilyaccessiaccessible bleininterms termsofofcost. cost.

eTranzact calls for moreinvestment in digital payment ecosystem

Agribusiness INVESTMENT TIMES

FAO Council endorses new 10-year strategies on Climate Change and on Science and Innovation The

Council of the Food and Agriculture Organization of the United Nations (FAO) has endorsed two thematic strategies that will guide FAO’s work on climate change and on science, technology and innovation over the next decade . The strategies are designed to drive the implementation of FAO’s Strategic Framework 2022-31, which steers FAO’s efforts to transform agrifood systems and promote a food secure world for all, as envisioned by the 2030 Agenda on Sustainable Development. They were endorsed on Monday and Tuesday in Rome by the 170th session of FAO’s executive body, at a time of rising hunger numbers and growing threats to global food security. "These two strategies are the extraordinary result of our collective efforts," FAO Director-General QU Dongyu told the Council. "The Strategy on Climate Change will guide FAO in providing strengthened support to Members in their ambitions to address climate change in agrifood systems, and in the implementation of the Paris Agreement," the Director-General said. "The Strategy on Science and Innovation will benefit the billions of small-scale producers and their families who are urgently in need of the best available science, technologies and innovation to play their part in transforming our agrifood systems." The two thematic strategies deal with the entire 33

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globalagrifood agrifoodsystem, system,which whichcovers coversthe the global journeyofoffood foodfrom fromfarm farmtototable table– –includincludjourney ingwhen whenititisisgrown, grown,fished, fished,harvested, harvested,proproing cessed,packaged, packaged,transported, transported,distributed, distributed, cessed, traded, bought, bought, prepared, prepared, eaten eaten and and traded, disposedof. of.Agrifood Agrifoodsystems systemsalso alsoencomencomdisposed passnon-food non-foodproducts, products,such suchasasforestry forestry pass andaquaculture, aquaculture,including includingthe thesustainable sustainable and managementand andconservation conservationofofrelated related management ecosystems, asas well well asas allall the the activities, activities, ecosystems, investmentsand andchoices choicesthat thatplay playa apart partinin investments gettingususthese thesefood foodand andagricultural agriculturalprodprodgetting uctswe weneed. need. ucts ClimateChange Change Climate Resilientand andproductive productiveland landand andaquatic aquatic Resilient ecosystemsare arethe thefoundations foundationsofofsustainsustainecosystems ableagrifood agrifoodsystems. systems. able Thelatest latestscientific scientificevidence evidencefrom fromthe theUN’s UN’s The Intergovernmental Panel Panel on on Climate Climate Intergovernmental Change (IPCC) (IPCC) confirms confirms the the unequivocal unequivocal Change andunprecedented unprecedentedclimate climaterisks risksthat thatthe the and planet isis facing facing from from intensifying intensifying heatheatplanet waves,heavy heavyprecipitation precipitationand anddroughts, droughts, waves, firesand andtropical tropicalcyclones. cyclones. fires Increasing weather weather and and climate climate extreme extreme Increasing eventshave havealready alreadycaused causedeconomic economicdamdamevents agesand andexposed exposedmillions millions ofofpeople peopletoto ages acutefood foodinsecurity insecurityand andreduced reducedwater water acute security. Small Small Island Island Developing Developing States States security. (SIDS)are areatatparticular particularrisk riskdue duetotowarming warming (SIDS) ocean temperatures, temperatures, ocean ocean acidification acidification ocean

FAO Council endorses new 10-year strategies on Climate Change

A NEW THINKING

and andrising risingsea sealevels. levels. Given Giventhe thealready alreadytangible tangibleimpact impactofofextreme extreme weather weatherevents eventson onfood foodsecurity, security,nutrition nutritionand and poverty, poverty, “the “the urgency urgency toto address address climate climate change changehas hassignificantly significantlyincreased,” increased,”the theCounCouncilcilwas wastold. told. Global Globalagrifood agrifoodsystems systemsare areresponsible responsiblefor for about abouta athird thirdofoftotal totalgreenhouse greenhousegas gasemisemissions sionsand andare areone oneofofthe themajor majorvictims victimsofof climate climatechange. change.The TheFAO FAOStrategy Strategyon onClimate Climate Change Change2022-2031 2022-2031presents presentsthem themasaspart partofof the thesolution. solution. Agrifood Agrifoodsystems systemsare areenvisioned envisionedtotobe besussustainable, tainable,inclusive, inclusive,resilient, resilient,and andadaptive adaptivetoto climate climatechange changeand anditsitsimpacts, impacts,contributing contributing totolow-emission low-emissioneconomies economieswhile whileproviding providing sufficient, sufficient, safe safe and and nutritious nutritious foods foods for for healthy healthy diets, diets, asas well well asas other other agricultural agricultural products productsand andservices, services,for forpresent presentand andfuture future generations, generations,leaving leavingno noone onebehind. behind. The Thestrategy strategyaims aimstotoaddress addressa abroad broadrange rangeofof interlinked interlinkedchallenges, challenges,including includingthe theloss lossofof biodiversity, biodiversity,desertification, desertification,land landand andenvironenvironmental mentaldegradation, degradation,the theneed needfor foraccessible, accessible, renewable renewableenergy, energy,and andfood foodand andwater watersecurisecurity.ty.

FAO FAOsees seesscience scienceand andinnovation innovationasasa apowerpowerful fulengine enginetototransform transformagrifood agrifoodsystems systemsand and end endhunger hungerand andmalnutrition. malnutrition.But Butititneeds needstoto be beaccompanied accompaniedby bystrong stronginstitutions, institutions,good good governance, governance,political politicalwill, will,enabling enablingregulatoregulatoryry frameworks, frameworks, and and effective effective measures measures toto promote promoteequity equityamong amongitsitsactors. actors. Important Importantstrides strideshave havebeen beenmade madeinina arange range ofofscientific scientificand andtechnological technologicalfields, fields,includincluding ing inin biotechnology, biotechnology, data data analytics analytics and and nuclear nucleartechniques techniquesininfood foodand andagriculture. agriculture. Public-private Public-privatepartnerships partnershipsare areon onthe therise riseinin research researchand anddevelopment. development.AtAtthe thesame sametime, time, market marketconcentration concentrationhas hasheightened heightenedconconcerns cernsabout aboutunequal unequalaccess accesstotoresources resourcesand and knowledge, knowledge, both both between between countries countries and and within withinsocial socialgroups. groups. The The challenges challenges inin harnessing harnessing science science and and innovation innovationfor foragrifood agrifoodsystems systemsrange rangefrom from underinvestment underinvestment inin research, research, toto gaps gaps inin using using science science and and evidence evidence for for decidecision-making. sion-making. The The FAO FAO Science Science and and Innovation Innovation Strategy Strategy focuses focuseson onthree threePillars: Pillars: i)i)Strengthening Strengtheningscience scienceand andevidence-based evidence-based decision-making; decision-making; ii)ii)Supporting Supportinginnovation innovationand andtechnology technologyatat regional regionaland andcountry countrylevel; level; iii) iii)Serving ServingMembers Membersbetter betterby byreinforcing reinforcing FAO’s FAO’scapacities. capacities.

ItItisisorganized organizedunder underthree threePillars: Pillars:i)i)Global Global and andregional regionallevels levels(strengthening (strengtheningglobal globaland and regional regionalclimate climatepolicy policyand andgovernance); governance);ii)ii) Country Countrylevel level(developing (developingcountries’ countries’capacicapacities tiesfor forclimate climateaction); action);iii) iii)Local Locallevel level(scaling (scaling up upclimate climateaction actionon onthe theground). ground). ItsIts guiding guiding principles principles include include empowering empowering and andengaging engagingfarmers, farmers,livestock livestockkeepers, keepers,fishfishers, ers,aquaculturists, aquaculturists,Indigenous IndigenousPeoples Peoplesand and forest-dependent forest-dependent people, people, embracing embracing both both traditional traditional good good practices practices and and innovations, innovations, and andbuilding buildingon onscience-based science-basedevidence. evidence.

Achieving Achievingthe thestrategy's strategy'svision visionmeans meansthat thatallall countries countries have have access access toto the the science science and and innovation innovationthey theyneed needtotoovercome overcomethe thecomcomplex plex social, social, economic economic and and environmental environmental challenges challenges facing facing their their agrifood agrifood systems. systems. Achieving Achievingthis thisvision visioninina aglobally globallyequitable, equitable, inclusive inclusive and and sustainable sustainable manner manner requires requires the theactive activeinvolvement involvementofofunder-represented under-represented stakeholders stakeholders– –such suchasaswomen womenand andyouth. youth.

The TheStrategy Strategyisisinformed informedby byscience, science,prioritizes prioritizes innovative innovative solutions solutions and and inclusiveness, inclusiveness, and and recognizes recognizesthe theimportance importanceofofscaling scalingup upboth both finance financeand andinvestment. investment.

The Thetwo twothematic thematicstrategies strategieswill willbe beoperaoperationalized tionalizedthrough throughAction ActionPlans Plansand andare aredue due totoreceive receivea amid-term mid-termreview reviewby bythe theCouncil Council five fiveyears yearsafter aftertheir theiradoption. adoption.

Science Scienceand andInnovation Innovation

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FAO Council endorses new 10-year strategies on Climate Change

INVESTMENT TIMES

Finding your way home – How to balance oneself to a successful life By Louisa Afriyie Afrane Okese L Lately, ately,very veryoften oftenthan thannot, not,it itisisvery veryeasy easytotolose lose yourself yourself in in aa lot lot of of the the things, things, itit may may be be from from work, work, family, family, relationships relationships or or just just our our social social interaction, interaction, for for most most of of us us losing losing ourselves ourselves is is not not even even the the worst worst part, part, having having to to deal deal with with issues issues in in solitude solitude and and still still keep keep up up appearance appearance is is the the real real struggle. struggle. The The thing thing about about solitude solitude is, is, itit rarely rarely gives gives you you aa choice, choice, you you can can be be surrounded surrounded by by aa number number of of people people but but somehow somehow still still feel feel lost. lost.

While While itit is is normal normal for for every every person person to to have have days, days, they they feel feel less less motivated motivated or or simply simply not not in in the the mood mood for for anything, anything, the the magnitude magnitude of of situations situations has has the the tendency tendency of of sending sending people people into into depression, depression, in in minimal minimal cases cases psychology psychology profesprofessionals sionals have have said said that that major major episodes episodes of of depresdepression sion can can last last up up to to 22 weeks weeks or or longer, longer, but but this this really really depends depends on on how how our our situations situations play play out. out. Some Some people people have have ability ability to to pull pull themselves themselves out out of of these these moods moods easily, easily, is is this this aa special special skill skill they they mastered mastered over over time? time? Or Or do do they they just just know know who who they they are are and and how how to to manage manage themselves themselves on on these these days? days? ItIt is is absolutely absolutely true true that that the the average average adult adult spends spends most most part part of of their their days days at at the the office office or or

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behind behind their their pcs pcs and and smart smart phones phones doing doing some some form form of of work, work, our our jobs jobs have have an an impact impact on on the the quality quality of of life life and and relationrelationships ships we we have. have. Whether Whether as as an an entrepreentrepreneur neur or or working working for for an an organization, organization, the the pressure pressure from from work work related related activities activities eventually eventually catches catches up up with with in in the the form form of of stress. stress. You You are are doing doing yourself yourself aa great great favor favor ifif you you find find an an effective effective way way to to manage manage both both physical physical and and mental mental stress. stress. Taking Taking time time to to have have self-reflective self-reflective moments moments can can change change your your perspective perspective on on situations situations and and how how you you handle handle it. it. Do Do you you think think employers employers consider consider employemployee ee self-management? self-management? Or Or as as an an employer employer do do you you have have measures measures in in place place to to ensure ensure your your employees employees are are happy happy in in performing performing their their roles? roles? itit is is often often up up to to you you as as an an indiindividual vidual to to make make sure sure you you find find aa balance balance between between your your work work and and social social life, life, this this will will mean mean consciously consciously taking taking steps steps and and engaging engaging in in activities activities that that will will facilitate facilitate or or

Finding your way home

A NEW THINKING

enhance enhance this this balance, balance, while while this this process process may may take take time time to to master, master, you you are are on on aa path path to to rediscovering rediscovering your your true true self self by by so so doing. doing. Experts Experts have have recommended recommended steps steps you you may may take take to to make make the the journey journey to to self-rediscovery self-rediscovery easier. easier. A A first first recommendation recommendation is is to to ask ask your your self-questions self-questions on on how how you you are are feeling feeling in in every every significant significant moment, moment, identify identify what what your your thoughts thoughts are are about about the the situation, situation, what what emotion emotion you you are are attaching attaching and and what what action action you you are are undertaking undertaking in in response.it response.it is is said said that that this this allows allows you you to to reconnect reconnect the the actions actions of of your your mind mind and and your your body. body. Connecting Connecting with with your your true true self self in in rediscovering rediscovering yourself yourself means means you you reflect reflect on on your your thoughts thoughts amongst amongst the the many many conflicting conflicting and and confusconfusing ing ones ones and and pursue pursue the the thought thought you you most most connect connect with with .. Where Where does does this this end end really? really? there there is is no no true true point point of of reaching reaching self-discovery, self-discovery, our our daily daily interactions interactions with with our our associates, associates, clients clients and and family family continues continues to to invoke invoke reactions reactions we we may may

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not not know know we we are are capable capable of, of, however however by by applying applying the the fundamentals fundamentals of of understandunderstanding ing yourself yourself you you take take control control of of your your actions actions and and reactions. reactions. With With the the dynamics dynamics in in our our experiences experiences as as people people there there are are different different approaches approaches to to reaching reaching that that state state of of mental mental and and self-awareness, self-awareness, to to some some taking taking aa break break off off work work activities activities alone alone does does the the trick trick while while some some may may require require some some level level of of support, support, there there is is no no defined defined way way of of getting getting there there and and that that is is why why knowing knowing what what works works for for you you is is always always helpful. helpful. Paramount Paramount in in all all of of this this is is the the peace peace that that comes comes with with finding finding the the right right balance balance in in all all aspect aspect of of your your life, life, work work and and personal personal life life have have aa relationship, relationship, they they each each have have the the tentendency dency to to severely severely impact impact each each other other hence hence the the importance importance of of being being self-aware. self-aware. When When you you are are at at aa place place of of peace peace with with your your life life and and within within yourself, yourself, your your thoughts, thoughts, actions actions and and emotions emotions align align with with what what your your true true self self wants wants and and maybe maybe that that is is where where you you can can say say you you have have found found your your way way home. home.

Finding your way home

Getting organized INVESTMENT TIMES

Getting organized:Time to get your financial house in order Getting organized: Time to get your financial house in order By Benjamin Amoah, Peter Asare Nyarko , Valentino Sabuco

G Getting ettingand andkeeping keepingyour yourfinancial financialhouse houseinin order order is is an an important important ongoing ongoing household household task, task, but but in in these these changing changing financial financial times times it’s it’s particularly particularly important. important. With With all all the the finanfinancial cial uncertainties uncertainties you you want want your your important important paperwork paperwork and and digital digital files files readily readily accessiaccessible. ble.

Quick: Quick: do do you you know know where where your your birth birth certificertificate cate is is located? located? Your Your Ghana Ghana Card? Card? Your Your health health records? records? Your Your marriage marriage certificates? certificates? Deed Deed to to your your house? house? Your Your vehicle vehicle registraregistration tion certificate? certificate? How How about about mother’s mother’s will will or or your your folks’ folks’ durable durable power power of of attorney? attorney? Where’s Where’s your your employee employee benefits benefits booklet? booklet? A A key key and and fundamental fundamental step step in in sound sound finanfinancial cial management management is is getting getting organized organized and and staying staying that that way. way. It’s It’s also also the the starting starting point point to to sound sound personal personal money money management. management. Good Good organization organization is is the the foundation foundation for for making making wise wise fiscal fiscal decisions. decisions. Even Even with with the the help help of of technology, technology, we we still still have have to to deal deal with with aa rising rising mound mound of of personal personal and and financial financial paperwork. paperwork. Paperwork Paperwork starts starts with with our our birth birth certificate certificate and and keeps keeps getting getting bigger bigger and and more more comcomplex plex with with each each coming coming year. year. Bills, Bills, statestatements, ments, medical medical records, records, taxes, taxes, kids' kids' educaeducational tional paperwork, paperwork, warranties warranties and and receipts receipts — —

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the the flow flow of of information information can can easily easily seem seem overoverwhelming, whelming, especially especially when when files files or or critical critical pieces pieces of of paper paper scattered scattered go go astray. astray. And And who who has has time time for for long-term long-term planning planning when when there there are are bills bills to to pay pay and and last last year's year's tax tax records records to to get get ready ready for for the the tax tax preparpreparer? er? Investing Investing aa little little time time now now to to set set up up or or fine-tune fine-tune aa system system that that works works for for you you will will simsimplify record-keeping and and financial financial manmanplify your your record-keeping agement agement forever. forever. You'll You'll also also benefit benefit by: by: oo Saving Saving time time when when you you pay pay bills, bills, work work on on tax tax returns returns or or make make financial financial decisions. decisions. oo Avoiding Avoiding overlooked overlooked expense expense reimbursereimbursements ments or or tax tax deductions deductions you're you're entitled entitled to. to. Being Being sure sure that that in in aa family family emergency, emergency, critical critical documents documents and and information information are are accessible accessible to to those those who who need need them. them. oo Eliminating Eliminating stressful stressful last-minute last-minute searches searches for for information information or or documents. documents. oo Avoiding Avoiding penalties penalties because because of of missed missed or or late late payments, payments, or or being being caught caught short short of of funds funds when when large large obligations obligations unexpectedly unexpectedly come come

Getting organized: Time to get your financial house in order me

A NEW THINKING

due. due. GETTING GETTING STARTED STARTED oo Think Think of of organizing organizing your your personal personal finances finances in in four four general general areas: areas: Paperwork. Paperwork. This This is is all all about about managing managing inforinformation, mation, both both digital digital and and paper paper documents. documents. We We all all have have birth birth records, records, school school records, records, health health records, records, insurance insurance policies, policies, tax tax records, records, bank bank statements, statements, paid paid bills, bills, correspondence correspondence .. oo This This information information is is commonly commonly disorganized disorganized and and difficult difficult to to access access quickly. quickly. The The key key here here is is to to give give yourself yourself some some flexibility flexibility by by setting setting up up and and using using aa filing filing system system divided divided into into five five categories categories — — Primary Primary Documents, Documents, Action Action Files, Files, Main Main Files, Files, Historical Historical Files Files and and Family Family Memorabilia Memorabilia and and Projects. Projects. oo Also, Also, using using aa single single “Things “Things To-Do To-Do List” List” and and calendar calendar to to track track things things you you need need to to accomaccomplish plish and and remember remember can can be be helpful. helpful. Keeping Keeping these these near near aa current current list list of of the the names, names, addresses, addresses, phone phone numbers numbers and and e-mail e-mail addresses addresses of of your your family, family, friends friends and and financial financial and and household household advisers advisers can can also also be be aa real real time time saver. saver. oo Obtain Obtain aa credit credit report report each each year year to to see see ifif itit is is accurate accurate and and up-to-date. up-to-date. This This can can save save you you time time and and trouble trouble in in the the future. future. You You can can get get aa free free one one Net Net Worth. Worth. This This is is what what you you own, own, less less what what you you owe. owe. Once Once aa year year it's it's aa good good idea idea to to inventory inventory what what you you own own and and what what you you owe, owe, and and create create your your own own personal personal net net worth worth statement. statement. Compare Compare itit to to last last year's year's statement statement and and see see ifif you you are are improving improving your your financial financial position. position. oo When When you you do do this, this, list list the the "fair "fair market market value" value" of of what what you you own, own, not not what what you you paid paid for for items. items. Cash Cash Flow. Flow. This This involves involves more more than than just just creatcreating ing aa budget. budget. Understanding Understanding what what you you earn earn and and how how you you are are using using your your money money gives gives you you

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“What Creates Clutter? ...my perception is that at a basic level, there is really just one flaw: a failure to systematize common decisions. Whenever I leave things lying out, it’s because I’m not ready to decide what to do with them yet. So the process of organizing really comes down to having a system for automating decisions about where everything goes. Disorganized people have few or no systems, so they must make every decision on a case by case basis. Eventually this becomes overwhelming, and clutter begins to pile up. Organized people will make far fewer decisions in the long run. It takes far more time to be disorganized than it does to be organized because disorganized people lose so much time to inefficiency.” ~ Steve A. Pavlina

more power power over over your your life. life. more Ask yourself yourself what what you you need need or or want? want? What What Ask you can can afford afford today today or or that that you you need need to to you save for? save for? Benjamin Amoah, Department of Finance University of Ghana Business School and CEFIS, Accra Peter Asare Nyarko, Executive Director CFLE Africa, Accra Valentino Sabuco, TFAF, California USA

Getting organized: Time to get your financial house in order me

INVESTMENT TIMES

o Where can I achieve just as much or more satisfaction from by spending less money? o Attending an expensive concert or going for a country walk when I have no money in my account? o Renting a video instead of going to the movies? o Making a gourmet lunch instead of eating out?

goals. Employment Benefits. For millions of workers and small-business owners, employment benefits are a hidden paycheck. Any amount your employer contributes to your insurance — health, vision, dental, disability, automobile, long-term care and life — future retirement, financial planning and other benefits is money you don't need to spend with your after-tax dollars.

o Waiting another year to buy your next car or take that special trip?

It is a good idea to review your benefits package annually to see that you are taking full advantage.

Managing your money wisely, not emotionally, is the key to gaining control over your financial life and giving you the best chance of reaching and maintaining your lifelong

This is also a way to compare employment opportunities; as some employers provide their employees with benefits that can range from 5% to 40% of salaries!!!

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Getting organized: Time to get your financial house in order me

AANNINV INVIT ITAATTION ION TTOONE NEWWLIV LIVING ING

ACCRALIVING LIVING& & ACCRA INVESTING INVESTING

CA TO DA CA L L LUU S STO DA YY

+233 +233 5454632 6321146 1146

INVESTMENT TIMES

the implementation of rules on trade protocols. Moreover, processes of trade, he said, had been automated through a single window that was an end-to-end system connecting the Division to all other Ministries Department and Agencies (MDA). “Now you can sit in your office and process your permits, certificate and licenses and other documents. You don’t need to move from one Ministry to the other,” he said. Mr. Akoto also indicated that the system allowed for application for certificate of origin, registration of manufacturers where companies could submit their application and schedule for inspection.

Customs declare readiness for AfCFTA

The Customs Division of the Ghana Revenue Authority has stated it preparedness to receive goods from State parties of the Africa Continental Free Trade Agreement (AfCFTA). With the Ministry of Trade and Industry declaring the Division as the Designated Competent Authority, it is mandated to issue certificate of origin for goods and verifying cross border trade.

Mr Yao Fechin Akoto, Assistant Commissioner in Charge of Rule of Origin and Tariff Schedule, said the Division had put in place all the needed infrastructure to carry out its mandate under AfCFTA. He was speaking as a panellist at the US- Ghana Business Forum on the topic, “Customs Modernization and Supply Chain Solutions to Promote Manufacturing: Within the AfCFTA Zone.” “We have in place a setup responsible for AfCFTA activities and other free trade agreements that we are into,” he said. The Assistant Commissioner noted that training and sensitisation of officers and other stakeholders on the interpretation of the rules had been carried out to forestall any challenges with

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He added that, “reliefs and privileges under AfCFTA could also be managed in the system through a Customs procedure code, which gives necessary relief and exemptions”. “Any state party that is ready to send goods to Ghana, we are ready to receive. And any import, export or transit, we are ready to process,” he added. Dr. Fareed Arthur, Head of the National AfCFTA Coordination Office, said the rules of origin had inadvertently provided a new term of reference for trade on the continent, which established new value and supply chains. He, therefore, urged businesses to be keen on meeting the criteria set under the protocol by saying that “agreeing with all that has been said with the digitisation, the use of electronic systems and Artificial Intelligence (AI), your goods will still not go to Africa if it doesn’t qualify.” Madam Gyang Demitta Chinwude, Head of Customs Cooperation, Trade Facilitation and Transit, AfCFTA Secretariat, said her outfit was pushing for interconnectivity and automation of trade processes for seamless exchange of information among customs of party states.

Customs declare readiness for AfCFTA

A NEW THINKING

Ghana’s economy shows signs of rebound

G Ghana hana has has enjoyed enjoyed two two decades decades ofof steady steady growth, growth, but but the the impact impact of of the the Covid-19 Covid-19 panpandemic demicand andthe theUkraine-Russia Ukraine-Russiacrisis crisiscould coulddent dent economic economic prospects, prospects, according according to to an an African African Development Development Bank Bank report report published published last last month. month.

The The 52-page 52-page report, report, titled titled ‘Transforming ‘Transforming Ghana,’ Ghana,’ reviews reviews the the country’s country’s development development over overthe thepast pastten tenyears years(2012–2021) (2012–2021)and andevaluevaluates atesthe theAfrican AfricanDevelopment DevelopmentBank’s Bank’scontribucontribution tionthrough throughits itsHigh High55strategic strategicpriorities. priorities. Ghana’s Ghana’sGDP GDPper percapita capitagrew grew2.3% 2.3%per peryear yearon on average average between between 2012 2012 and and 2021, 2021, the the report report notes, notes,citing citingthe thecountry’s country’sstable stablepolitical politicalenvienvironment. ronment. Real Real GDP GDP growth growth averaged averaged 5.2% 5.2% during during the the same same time, time, causing causing the the country country to to rank rank among among Africa’s Africa’s fastest-growing fastest-growing econoeconomies mies for for several several years. years. Having Having achieved achieved lowlower-middle er-middle income income status status inin 2010, 2010, the the populapopula-

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tion tionliving livingbelow belowthe thepoverty povertyline linefell fellfrom from 24.2% 24.2%inin2012 2012to to10.7% 10.7%inin2021. 2021. With With regards regards to to the the High High 5s, 5s, the the Bank’s Bank’s track track record record isis impressive. impressive. In In the the period period under underreview, review,96,200 96,200people peoplegained gainedaccess access to to electricity electricity connections, connections, thanks thanks to to Bank-funded Bank-funded projects. projects. AA further further 520,000 520,000 benefited benefited from from improvements improvements inin agriculagriculture. ture. Around Around 1.24 1.24 million million people people have have enjoyed enjoyed better better transport transport services, services, and and 277,000 277,000 people people gained gained access access to to new new or or improved improved water water supplies, supplies, among among other other achievements. achievements. Looking Lookingahead, ahead,the themedium-term medium-termoutlook outlook isispositive, positive,with withthe theeconomy economyprojected projectedto to grow grow by by 5.3% 5.3% inin 2022 2022 and and 5.1% 5.1% inin 2023. 2023. This This may may change change ifif the the Ukraine-Russia Ukraine-Russia crisis crisisisisprolonged, prolonged,the thereport reportfound. found.ItItsaid said the the Covid-19 Covid-19 pandemic pandemic and and the the

Ghana’s economy shows signs of rebound

INVESTMENT TIMES

Ukraine-Russia Ukraine-Russia crisis crisis have have accentuated accentuated the the need need for for structural structural transformation, transformation, citing citing Exemplary CG practices are enshrined in Exemplary Exemplary CG practices are enshrined in Exemplary CG practices are enshrined in ExemplaryCG CGpractices practicesare areenshrined enshrinedin in declining decliningmineral mineralresources. resources. the espoused value systems of both the the the espoused value systems of both the the espoused value systems of both the theespoused espousedvalue valuesystems systemsof ofboth boththe the individuals within an institution and the individuals individuals within an institution and the individuals within an institution and the individualswithin withinan aninstitution institutionand andthe the At At the the same same time, time, population population growth growth and and institution itself. Espoused values are the institution institution itself. Espoused values are the institution itself. Espoused values are the institutionitself. itself.Espoused Espousedvalues valuesare arethe the social social expectations expectations call call for for creating creating aa masmasstated and desired values or beliefs of an stated stated and desired values or beliefs of an stated and desired values or beliefs of an statedand anddesired desiredvalues valuesor orbeliefs beliefsof ofan an sive sivenumber numberof ofjobs, jobs,particularly particularlyfor forthe thesurgsurgentity person or institution. For an instientity entity person or institution. For an instientity person or institution. For an instientity–––––person personor orinstitution. institution.For Foran aninstiinstiing ingyouth youthdemographic. demographic.In Inthis thiscontext, context, tution for instance, enshrined in the tution tution for instance, enshrined in the tution for instance, isisis enshrined in the tutionfor forinstance, instance,itititititis isenshrined enshrinedin inthe the written core values statement, mission, and written written core values statement, mission, and written core values statement, mission, and writtencore corevalues valuesstatement, statement,mission, mission,and and vision statements while for an individual, vision vision statements while for an individual, vision statements while for an individual, visionstatements statementswhile whilefor foran anindividual, individual,ititititit the intrinsic value, i.e. the beliefs of the is the intrinsic value, i.e. the beliefs of the isisis the intrinsic value, i.e. the beliefs of the isthe theintrinsic intrinsicvalue, value,i.e. i.e.the thebeliefs beliefsof ofthe the person that make the person do what person person that make the person do what person that make the person do what personthat thatmake makethe theperson persondo dowhat what he/she does largely. We also talk about the he/she he/she does largely. We also talk about the he/she does largely. We also talk about the he/shedoes doeslargely. largely.We Wealso alsotalk talkabout aboutthe the enacted values of an institution. Enacted enacted enacted values of an institution. Enacted enacted values of an institution. Enacted enactedvalues valuesof ofan aninstitution. institution.Enacted Enacted value the real values of an institution as value value the real values of an institution as value isisis the real values of an institution as valueis isthe thereal realvalues valuesof ofan aninstitution institutionas as perceived by members of that institution. perceived perceived by members of that institution. perceived by members of that institution. perceivedby bymembers membersof ofthat thatinstitution. institution. In other words, enacted values are the real In In other words, enacted values are the real In other words, enacted values are the real Inother otherwords, words,enacted enactedvalues valuesare arethe thereal real values of that institution and not the stated values values of that institution and not the stated values of that institution and not the stated valuesof ofthat thatinstitution institutionand andnot notthe thestated stated or espoused values. For example, when an or or espoused values. For example, when an or espoused values. For example, when an orespoused espousedvalues. values.For Forexample, example,when whenan an institution states integrity as one of their institution institution states integrity as one of their institution states integrity as one of their institutionstates statesintegrity integrityas asone oneof oftheir their core values, yet, the internal practices of core core values, yet, the internal practices of core values, yet, the internal practices of corevalues, values,yet, yet,the theinternal internalpractices practicesof of members of that institution have nothing members members of that institution have nothing members of that institution have nothing membersof ofthat thatinstitution institutionhave havenothing nothing to do with integrity, CG practices in such an to to do with integrity, CG practices in such an to do with integrity, CG practices in such an todo dowith withintegrity, integrity,CG CGpractices practicesin insuch suchan an institution will not be anything exceptioninstitution institution will not be anything exceptioninstitution will not be anything exceptioninstitutionwill willnot notbe beanything anythingexceptionexceptional. will be selectively practiced suiting the al. al. will be selectively practiced suiting the al. will be selectively practiced suiting the al.ItItItItItwill willbe beselectively selectivelypracticed practicedsuiting suitingthe the need of the moment. Good CG practices need need of the moment. Good CG practices need of the moment. Good CG practices needof ofthe themoment. moment.Good GoodCG CGpractices practices are at the heart of institutions whose are are at the heart of institutions whose are at the heart of institutions whose are at at the the heart heart of of institutions institutions whose whose espoused values and their enacted values espoused espoused values and their enacted values espoused values and their enacted values espousedvalues valuesand andtheir theirenacted enactedvalues values are in congruent. are are in congruent. are in congruent. arein incongruent. congruent. Allowing the Compliance Team FreeAllowing Allowing the Compliance Team FreeAllowing the Compliance Team FreeAllowingthe theCompliance ComplianceTeam TeamFreeFreedom to Operate dom dom to Operate dom to Operate domto toOperate Operate Alignment of the espoused values and the Alignment Alignment of the espoused values and the Alignment of the espoused values and the Alignmentof ofthe theespoused espousedvalues valuesand andthe the enacted values bedrock for good CG enacted enacted values bedrock for good CG good CG enacted values isisis bedrock for enactedvalues valuesis isaaaaabedrock bedrockfor foraaaaagood goodCG CG practices. For many institutions, this practices. practices. For many institutions, this practices. For many institutions, this isisis practices.For Formany manyinstitutions, institutions,this thisis isaaaaa huge task because talks are cheaper than huge huge task because talks are cheaper than huge task because talks are cheaper than hugetask taskbecause becausetalks talksare arecheaper cheaperthan than actions. However, doable. The compliactions. actions. However, doable. The compliactions. However, isisis doable. The compliactions.However, However,itititititis isdoable. doable.The Thecomplicompliance department needs to be allowed to ance ance department needs to be allowed to ance department needs to be allowed to ancedepartment departmentneeds needsto tobe beallowed allowedto to implement measures for this alignment implement implement measures for this alignment implement measures for this alignment implementmeasures measuresfor forthis thisalignment alignment economic economic diversification diversification isis paramount, paramount, without too many interferences from the without without too many interferences from the without too many interferences from the withouttoo toomany manyinterferences interferencesfrom fromthe the together together with with inclusive inclusive growth, growth, to to mitigate mitigate executives. Interferences from the execuexecutives. executives. Interferences from the execuexecutives. Interferences from the execuexecutives.Interferences Interferencesfrom fromthe theexecuexecuthe thecountry’s country’s vulnerability vulnerability to toexternal external shocks shocks tives should be in congruent with the tives tives should be in congruent with the tives should be in congruent with the tivesshould shouldbe bein incongruent congruentwith withthe the and andbuild buildresilience. resilience. espoused values of the organisation and espoused espoused values of the organisation and espoused values of the organisation and espousedvalues valuesof ofthe theorganisation organisationand and not just to overrule the compliance initianot not just to overrule the compliance initianot just to overrule the compliance initianotjust justto tooverrule overrulethe thecompliance complianceinitiainitiaThe The new new decade, decade, practice whose whose is beginning beginning was was tives. The standard to allow the tives. tives. The standard practice to allow the tives. The standard practice isisisto to allow the tives.The Thestandard standardpractice practiceis toallow allowthe the marked marked by by the the Covid-19 Covid-19 pandemic pandemic and and the the head of compliance to report directly to head head of compliance to report directly to head of compliance to report directly to headof ofcompliance complianceto toreport reportdirectly directlyto to Ukraine-Russia Ukraine-Russia crisis, crisis, will will test test the the country’s country’s the board of directors. This practice allows the the board of directors. This practice allows the board of directors. This practice allows theboard boardof ofdirectors. directors.This Thispractice practiceallows allows resilience resilience and and the the inclusivity inclusivity with with which which check and balances between the executive check check and balances between the executive check and balances between the executive checkand andbalances balancesbetween betweenthe theexecutive executive Ghana Ghana pursues pursues economic economic and and social social develdevelopment, opment,the thereport reportsaid. said. 42 investmenttimesonline.com

power power power powerand and and andthe the the theactivities activities activities activitiesof of of ofcompliance compliance compliance complianceunit. unit. unit. unit. power and the activities of compliance unit. Breaching Breaching Breaching Breaching this this this this standard standard standard standard practice practice practice practice may may may may result result result result Breaching this standard practice may result in in in inweak weak weak weakcompliance compliance compliance compliancewith with with withpolicies policies policies policiesthat that that thatproproproproin weak compliance with policies that promotes motes motes motes good good good good CG CG CG CG practices. practices. practices. practices. motes good CG practices.

The new decade, whose beginning was marked by the Covid-19 pandemic and the Ukraine-Russia crisis, will test the country’s resilience and the inclusivity with which Ghana pursues economic and social development, the report said.

Human Human Human Humanis isisis isthe the the theweakest weakest weakest weakestlink link link linkin in in inany any any anysystem, system, system, system, Human the weakest link in any system, especially especially especially especiallywhere where where whereissues issues issues issuesof of of ofsecurity security security securityis isisis isparaparaparaparaespecially where issues of security paramount. mount. mount. mount. Employing Employing Employing Employing the the the the services services services services of of of of people people people people mount. Employing the services of people with with with withtrack track track trackrecord record record recordof of of ofgood good good goodvalue value value valuesystems, systems, systems, systems, with track record of good value systems, conducting conducting conducting conducting an an an an extensive extensive extensive extensive background background background background check check check conducting an extensive backgroundcheck check prior prior prior priorto to to toemployment employment employment employmentis isisis iscritical. critical. critical. critical.This This This Thiswill will will willnot not not not prior to employment critical. This will not completely completely completely completely guarantee guarantee guarantee guarantee that that that that an an an an employee employee employee employee completely guarantee that an employee value value value value system system system system will will will will be be be be in in in in sync sync sync sync with with with with the the the the value system will be in sync with the espoused espoused espoused espoused values values values values of of of of the the the the company, company, company, company, it it it it will, will, will, will, espoused values of the company, it will, however, however, however, however,confirm confirm confirm confirman an an anintention intention intention intentionin in in inthe the the theright right right right however, confirm an intention in the right direction direction direction direction of of of of hiring hiring hiring hiring people people people people of of of of values. values. values. values. FurtherFurtherFurtherFurtherdirection of hiring people of values. Furthermore, more, more, more,organisations organisations organisations organisationsmust must must mustconstantly constantly constantly constantlytrain train train train more, organisations must constantly train and and and and motivate motivate motivate motivate their their their their employees employees employees employees on on on on best best best best pracpracpracpracand motivate their employees on best practices tices tices ticesthat that that thatalign align align alignwith with with withthe the the thecorporate corporate corporate corporatevalues. values. values. values. tices that align with the corporate values. Ghana Ghana and and the the African African DevelopDevelopOccasional Occasional Occasional Occasional mystery mystery mystery mystery shopping shopping shopping shopping is is is is an an an anadded added added added Occasional mystery shopping is an added ment ment Bank Bank have have been been partners partners initiative initiative initiative initiative for for for for top top top top management management management management or or or or even even even even the the the the initiative for top management or even the since since 1973 1973 when when the the Bank Bank non-executive non-executive non-executive non-executive directors directors directors directors to to to know know know knowin how how how how the the the the non-executive directors to know how the approved approved its its first firstto project project in supsuppublic public public public views views views views their their their their espoused espoused espoused espoused values values values values and and and and how how how how public views their values how port portof of the theespoused rice ricesector. sector. Since Sinceand then, then, the the the theemployees employees employees employees of of of of the the the the organisation organisation organisation organisation are are are are inteinteinteintethe employees of the organisation are intethe theBank Bankhas hasapproved approved127 127projprojgrating grating grating gratingects the the the theorganisation’s organisation’s organisation’s organisation’s values values values values into into into into their their their their grating the organisation’s values into their ects worth worth $4.1 $4.1 billion. billion. The The projprojdaily daily daily dailyactivities. activities. activities. activities. For For For For institutions institutions institutions institutionswho who who who claim claim claim claim daily activities. For institutions who claim ects ects have have concentrated concentrated on on agriagrithat that that that customers customers customers customers delight delight delight delight is is is is one one one one of of of of their their their their core core core core that customers is one of their core culture culture delight and and transport, transport, which which values, values, values, values,together mystery mystery mystery mystery shopping shopping shopping shopping from from from from an an an an values, mystery shopping from an together account account for for more more than than ‘aggrieved’ ‘aggrieved’ ‘aggrieved’ ‘aggrieved’ customer customer customer customer (a (a (a (a top top top top executive, executive, executive, executive, or or or or a ‘aggrieved’ (a top executive,inin oraaaa 50% 50%customer of ofthe theBank’s Bank’s investments investments hired hired hired hiredthird third third third party) party) party) party)over over over overaaaaaperiod period period periodwill will will willshow show show showififififif hired third party) over period will show Ghana. Ghana. customer customer customer customer service service service service personnel personnel personnel personnel have have have have personalpersonalpersonalpersonalcustomer service personnel have personalized ized ized izedor or or orinternalized internalized internalized internalized the the the stated stated stated stated value. value. value. value. MysMysMysMysized or internalized the stated value. MysThe The current currentthe active active portfolio portfolio in in tery tery tery tery shopping shopping shopping shopping is is is is a a a a cheap cheap cheap cheap tool tool tool tool that that that that instituinstituinstituinstitutery shopping is a cheap 18 tool that instituGhana Ghana comprises comprises 18 operations operations tions tions tions tionscan can can can employ employ employ employ to to to toknow know know know how how how howmuch much much much of of of tions can employ to know how much of with with aa total total commitment commitment of ofof their their their their values values values values are are are are being being being being breached breached breached breached or or or or bypassed bypassed bypassed bypassed their values are being breached bypassed $751.5 $751.5 million million across acrossorvarious various and and and andby by by bywho. who. who. who. and by who. sectors. sectors. The The transport transport sector sector isis the the largest largest beneficiary beneficiary with with 42% 42% Measuring Measuring Measuring MeasuringCorporate Corporate Corporate CorporateValues Values Values Valuesin in in in Measuring Corporate Values in Performance Performance Performance PerformanceAppraisals Appraisals Appraisals Appraisals Performance Appraisals of of total total commitments, commitments, followed followed by by agriculagriculItItItIt Itis isisis isnot not not notuncommon uncommon uncommon uncommonto to to tosee see see seethat that that thatcorporate corporate corporate corporate not uncommon to see that corporate ture ture (23%), (23%), and and the the remaining remaining going going to to values values values valuesare are are arehardly hardly hardly hardlyintegrated integrated integrated integratedinto into into intoorganisaorganisaorganisaorganisavalues are hardly integrated into organisasectors sectors including including power power and and water water supply supply tions’ tions’ tions’ tions’performance performance performance performanceappraisal appraisal appraisal appraisalsystems, systems, systems, systems,espeespeespeespetions’ performance appraisal systems, espeand andsanitation. sanitation. cially cially cially ciallywhere where where whereprofit profit profit profit‘by ‘by ‘by ‘byall all all allmeans’ means’ means’ means’is isisis isthe the the thefocus. focus. focus. focus. cially where profit ‘by all means’ the focus. A AAA Aparadigm paradigm paradigm paradigmshift shift shift shiftin in in inthe the the theprocess process process processof of of ofappraisappraisappraisappraisparadigm shift in the process of appraisThe The current current Bank’s Bank’s country country strategy strategy paper paper als als als alsfor for for formany many many manyorganisations organisations organisations organisationsis isisis isrequired. required. required. required.InstiInstiInstiInstials for many organisations required. Instifor for Ghana Ghana covering covering the the period period 2019–2023 2019–2023 tutions tutions tutions tutionsshould should should shouldbegin begin begin beginto to to toincorporate incorporate incorporate incorporatevalues values values values tutions should begin to incorporate values supports supports the the country’s country’s development development goals goals appraisal appraisal appraisal appraisal into into into into the the the the entire entire entire entire organisations’ organisations’ organisations’ organisations’ appraisal into the entire organisations’ of ofjob jobcreation, creation,economic economicinclusiveness, inclusiveness,and and appraisal appraisal appraisal appraisalsystem. system. system. system.Managers Managers Managers Managersshould should should shouldnot not not notonly only only only appraisal system. Managers should not only macroeconomic macroeconomicstability stabilitythrough throughindustrialindustrialization. ization. Ghana’s economy shows signs of rebound

The Human Resource Desk Getting organized

be be interested in the financial targets or revebeinterested interestedin inthe thefinancial financialtargets targetsor orreverevebe interested in the financial targets or revebe interested in the financial targets or revenues nues but but in in how how the the target target was was met met and and frown frown nuesbut butin inhow howthe thetarget targetwas wasmet metand andfrown frown nues but in how the target was met and frown nues at at breaching the corporate values in meeting atbreaching breachingthe thecorporate corporatevalues valuesin inmeeting meeting at breaching the corporate values in meeting at breaching the corporate values in meeting those those targets. thosetargets. targets. those targets. those targets. Appreciate Appreciate Employees who promote the Appreciate Employees Employees who who promote promote the the Appreciate Employees who promote the Appreciate Employees who promote the Espoused Espoused Corporate Corporate Values Values EspousedCorporate CorporateValues Values Espoused Corporate Values Espoused Organisations Organisations must make priority to conOrganisationsmust mustmake makeitititititaaaaapriority priorityto toconconOrganisations must make priority to conOrganisations must make priority to constantly stantly and publicly appreciate employees stantlyand andpublicly publiclyappreciate appreciateemployees employees stantly and publicly appreciate employees stantly and publicly appreciate employees who who have been able to effectively integrate whohave havebeen beenable ableto toeffectively effectivelyintegrate integrate who have been able to effectively integrate who have been able to effectively integrate the the organisations’ values into their day to day theorganisations’ organisations’values valuesinto intotheir theirday dayto today day the organisations’ values into their day to day the organisations’ values into their day to day activities, activities, even even if if the the employees’ employees’ financial financial activities, even even ififif the the employees’ employees’ financial financial activities, even the employees’ financial activities, targets targets are not met. Sometimes, financial targetsare arenot notmet. met.Sometimes, Sometimes,financial financial targets are not met. Sometimes, financial targets are not met. Sometimes, financial targets targets may not be met because of proven targetsmay maynot notbe bemet metbecause becauseof ofproven proven targets may not be met because of proven targets may not be met because of proven refusals refusals to compromise the values of the refusalsto tocompromise compromisethe thevalues valuesof ofthe the refusals to compromise the values of the refusals to compromise the values of the company. company. For For instance, instance, a a bank bank official, official, who who company. For For instance, instance, aaa bank bank official, official, who who company. For instance, bank official, who company. refuses refuses to cut corners or engages in shady refusesto tocut cutcorners cornersor orengages engagesin inshady shady refuses to cut corners or engages in shady refuses to cut corners or engages in shady deals deals just to meet target should also be dealsjust justto tomeet meetaaaaatarget targetshould shouldalso alsobe be deals just to meet target should also be deals just to meet target should also be rewarded rewarded for upholding the values of the rewardedfor forupholding upholdingthe thevalues valuesof ofthe the rewarded for upholding the values of the rewarded for upholding the values of the company company rather than penalizing him or her companyrather ratherthan thanpenalizing penalizinghim himor orher her company rather than penalizing him or her company rather than penalizing him or her for for simply not meeting target without looking forsimply simplynot notmeeting meetingtarget targetwithout withoutlooking looking for simply not meeting target without looking for simply not meeting target without looking at at why he or she was not able to meet the atwhy whyhe heor orshe shewas wasnot notable ableto tomeet meetthe the at why he or she was not able to meet the at why he or she was not able to meet the target. target. that in an environment where target.IIIbelieve Ibelieve believethat thatin inan anenvironment environmentwhere where target. Ibelieve believe that in an environment where target. that in an environment where good good CG isisis promoted, there would come goodCG CGis ispromoted, promoted,there therewould wouldcome comeaaaaa good CG promoted, there would come good CG promoted, there would come time time when to walk away from deal, no timewhen whento towalk walkaway awayfrom fromaaaaadeal, deal,no no time when to walk away from deal, no time when to walk away from deal, no matter matter how how lucrative lucrative it it was, was, would would be be the the matter how how lucrative lucrative ititit was, was, would would be be the the matter how lucrative was, would be the matter ideal ideal thing to do. There are financial instituidealthing thingto todo. do.There Thereare arefinancial financialinstituinstituideal thing to do. There are financial instituideal thing to do. There are financial institutions tions who would rather walk away from lucrationswho whowould wouldrather ratherwalk walkaway awayfrom fromlucralucrations who would rather walk away from lucrations who would rather walk away from lucrative tive deposits just because some seemingly tivedeposits depositsjust justbecause becausesome someseemingly seemingly tive deposits just because some seemingly tive deposits just because some seemingly non-essential non-essential documents documents could could not not be sightnon-essential documents could not besightsightnon-essential documents could not be sightnon-essential documents could not be sightOVID-19 raised its ugly head inbe the later ed. ed. ed. ed. ed. part of the year 2019 in some parts of the world mostly in China. The first known infecIn article “Fighting Corruption the In the article “Fighting Corruption the Inthe the article “Fighting Corruption the In the article “Fighting Corruption the In the article “Fighting Corruption the tions were discovered in Wuhan, China. The Celtel Celtel Way Way : : Lessons Lessons from from the the Front Front Line”, Line”, CeltelWay Way Lessons from theFront FrontLine”, Line”, Lessons from the Front Line”, Celtel Way Celtel :::Lessons from the original source of viral Transmission to one of Celtel’s corporate values (espoused one of Celtel’s corporate values (espoused one of Celtel’s corporate values (espoused one of Celtel’s corporate values (espoused one of Celtel’s corporate values (espoused humans still remains unclear as does whethand and enacted) enacted) is isisis “we are are open, honest and and enacted) is“we “wepathogenic areopen, open,honest honestand and and enacted) “we are open, honest and and enacted) “we are open, honest and er the virus became before or transparent”(2). In their own words, “We transparent”(2). In their own words, “We transparent”(2). In their own words, “We transparent”(2). In their own words, “We transparent”(2). In their own words, “We after the spillover event. applied applied these values at all levels: from the appliedthese thesevalues valuesat atall alllevels: levels:from fromthe the applied these values at all levels: from the applied these values at all levels: from the shareholders and the Board to a handbook shareholders and the Board to a handbook shareholders and the Board to a handbook shareholders and the Board to a handbook shareholders and the Board to a handbook Severe acute respiratory syndrome coronafor employee”(2). of they for every employee”(2). One of the ways they forevery every employee”(2). One ofthe theways ways they for every employee”(2). One of the ways they for every employee”(2). One of the ways they virus 2(SARS-CoV-2) is aOne novel severe acute enshrined this value into their dealings espeenshrined this value into their dealings espeenshrined this value into their dealings espeenshrined this value into their dealings espeenshrined this value into their dealings esperespiratory syndrome coronavirus. It was cially in 44444africans cially in Africa where out of every africans cially inAfrica Africawhere where11three outof ofevery every africans cially in Africa where out of every africans cially in Africa where 111out out of every africans first identified from (3) people with was said to have paid bribe to access a service was said to have paid bribe to access a service was said to have paid bribe to access a service was said to have paid bribe to access a service was said to have paid bribe to access a service pneumonia connected to the cluster of by report and by 2020 report and where about 145 billion byaaaaa2020 2020 report and whereabout about 145billion billion by 2020 report and where about 145 billion by 2020 report and where about 145 billion acute illness cases inwhere Wuhan. All 145 structural USD is lost annually to corruption (3), was to USD is lost annually to corruption (3), was to USD is lost annually to corruption (3), was to USD is lost annually to corruption (3), was to USD is lost annually to corruption (3), was to features of the novel SARS-CoV-2 virus parensure that paid ensure that every dime paid to the governensure that everydime dime paidto tothe the governensure that every dime paid to the governensure that every dime paid to the governticle occur inevery related coronaviruses in governnature. ment machineries in any form is discussed ment machineries in any form is discussed ment machineries in any form is discussed ment machineries in any form is discussed ment machineries in any form is discussed This has since then cause great negative and by BBoard and further and approved by the BBoard and further andapproved approved bythe thelife BBoard and further and approved by the BBoard and further and approved by the BBoard and further impact on all aspect of such as Political, reported to the donor communities. The reported to the donor communities. The outreported to the donor communities. The outreported to the donor communities. The outreported to the donor communities. The outSocial, Economic, Religious lives stylesoutof people. Organizations as well were not left

A NEW THINKING

come come of any government “frontman” not come of of any any government government “frontman” “frontman” not not come of any government “frontman” not come of any government “frontman” not agreeing agreeing to these transparency clauses isisis for agreeingto tothese thesetransparency transparencyclauses clausesis isfor for agreeing to these transparency clauses for agreeing to these transparency clauses for Celtel walk Celtel to away from the deal and isisis Celtelto towalk walkaway awayfrom fromthe thedeal dealand anditititititis isaaaaa Celtel to walk away from the deal and Celtel to walk away from the deal and case case closed! There are many other institutions caseclosed! closed!There Thereare aremany manyother otherinstitutions institutions case closed! There are many other institutions case closed! There are many other institutions who who have walked away from other lucrative whohave havewalked walkedaway awayfrom fromother otherlucrative lucrative who have walked away from other lucrative who have walked away from other lucrative deals deals simply because they would not comprodealssimply simplybecause becausethey theywould wouldnot notcomprocomprodeals simply because they would not comprodeals simply because they would not compromise mise their values. This isisis one major attributes misetheir theirvalues. values.This Thisis isone onemajor majorattributes attributes mise their values. This one major attributes mise their values. This one major attributes that that many foreign investors are looking for thatmany manyforeign foreigninvestors investorsare arelooking lookingfor for that many foreign investors are looking for that many foreign investors are looking for before before they enter into any partnership. beforethey theyenter enterinto intoany anypartnership. partnership. before they enter into any partnership. before they enter into any partnership. When When institutions in an economy begin to Wheninstitutions institutionsin inan aneconomy economybegin beginto to When institutions in an economy begin to When institutions in an economy begin to have their values and have the right mix between havethe theright rightmix mixbetween betweentheir theirvalues valuesand and have the right mix between their values and have the right mix between their values and profit profit making activities, integrate their stated profitmaking makingactivities, activities,integrate integratetheir theirstated stated profit making activities, integrate their stated profit making activities, integrate their stated values activities and putvalues with their day to day activitiesand andputputvalueswith withtheir theirday dayto today dayactivities values with their day to day activities and putactivities and putvalues with their day to day ting ting active measures in place to narrow the tingactive activemeasures measuresin inplace placeto tonarrow narrowthe the ting active measures in place to narrow the ting active measures in place to narrow the gaps gaps between their espoused values and their gapsbetween betweentheir theirespoused espousedvalues valuesand andtheir their gaps between their espoused values and their gaps between their espoused values and their enacted enacted values to achieve value congruency, enactedvalues valuesto toachieve achievevalue valuecongruency, congruency, enacted values to achieve value congruency, enacted values to achieve value congruency, then then solid foundation will be built to accomthenaaaaasolid solidfoundation foundationwill willbe bebuilt builtto toaccomaccomthen solid foundation will be built to accomthen solid foundation will be built to accommodate modate whatever economic boom that may modatewhatever whatevereconomic economicboom boomthat thatmay may modate whatever economic boom that may modate whatever economic boom that may be be in the offing both for the organisations bein inthe theoffing offingboth bothfor forthe theorganisations organisations be in the offing both for the organisations be in the offing both for the organisations and and the economy at large. Good CG practices andthe theeconomy economyat atlarge. large.Good GoodCG CGpractices practices and the economy at large. Good CG practices and the economy at large. Good CG practices are are not just for the advantage of the compaarenot notjust justfor forthe theadvantage advantageof ofthe thecompacompaare not just for the advantage of the compaare not just for the advantage of the companies nies practicing them, but for the good of the niespracticing practicingthem, them,but butfor forthe thegood goodof ofthe the nies practicing them, but for the good of the nies practicing them, but for the good of the public. public. public. public. public. In In subsequent editions, we will discuss the Insubsequent subsequenteditions, editions,we wewill willdiscuss discussthe the In subsequent editions, we will discuss the In subsequent editions, we will discuss the effects effects (positive and negative) of enacted or effects(positive (positiveand andnegative) negative)of ofenacted enactedor or effects (positive and negative) of enacted or effects (positive and negative) of enacted or practiced practiced values on each of the elements of practicedvalues valueson oneach eachof ofthe theelements elementsof of practiced values on each of the elements of practiced values on each of the elements of the the CG. theCG. CG. the CG. the CG.

COVID-19 and Human Resource Issues

43 investmenttimesonline.com

Sources: Sources: Sources: Sources: Sources: with with this this great great impact impact on on both both the the employer employer 1.Fighting Corruption 1.Fighting Corruption the Celtel Way: Lessons 1.Fighting Corruptionthe theCeltel CeltelWay: Way:Lessons Lessons 1.Fighting Corruption the Celtel Way: Lessons 1.Fighting Corruption the Celtel Way: Lessons and and employee. employee. from from the front line, Worldbank, May 2005 fromthe thefront frontline, line,Worldbank, Worldbank,May May2005 2005 from the front line, Worldbank, May 2005 from the front line, Worldbank, May 2005 2. Corporate Governance 2. Corporate Governance Controls, John 2. Corporate Governance Controls,John John 2. Corporate Governance Controls, John 2. Corporate Governance Controls, John What What the the government government and and Controls, organizations organizations Kyriazoglou, Dec 2020. Kyriazoglou, Dec 2020. Kyriazoglou, Dec 2020. Kyriazoglou, Dec 2020. Kyriazoglou, Dec 2020. did did in in the the peak peak of of COVID-19 COVID-19 3.BBC NEWS |||The of in 3.BBC NEWS cost of corruption in 3.BBC NEWS|||Africa |Africa Africa |The Thecost cost ofcorruption corruption in 3.BBC NEWS |Africa Africa |The The cost of corruption in 3.BBC NEWS cost of corruption in The The emergency emergency of of COVID-19 COVID-19 placed placed aa hercuhercuAfrica Africa Africa Africa Africa lean leanburden burdenon onleaders leadersall allaround aroundthe theglobe globeas as its its presence presence became became inimical inimical to to socio-ecosocio-ecoDisclaimer: The views expressed personal Disclaimer: The views expressed are personal Disclaimer: Theand views expressedare are personal Disclaimer: The views expressed are personal Disclaimer: The views expressed are personal nomic nomic growth growth and productivity. productivity. Many Many lives lives views of media views and doesn’t represent that of the media viewsand anddoesn’t doesn’t representthat that ofthe thenature media views and doesn’t represent that of the media views and doesn’t represent that of the media were were lost lost by by its its represent incessant incessant evolving evolving nature house institution the house or institution the writer works. houseor or institution thewriter writerworks. works. house or institution the writer works. house or institution the writer works. because because medical medical professionals professionals could could not not lay lay their theirfingers fingerson onits itsmetamorphosis metamorphosisentirely. entirely. The The COVID-19 COVID-19 effect effect has has been been enormous enormous this this includes includes low low production production and and general general impact impact on on the the economy. economy. During During the the height height of of the the positive positive confirmed confirmed COVID-19 COVID-19 cases cases in in Ghana, Ghana, all all social social gatherings gatherings were were restricted restricted by by the the government. Movement Movement of of workers workers were were also also government. restricted, and and institutions institutions such such as as education education restricted, and religions religions bodies bodies were were all all totally totally closed closed and

COVID-19 and Human Resource Issues

INVESTMENT TIMES

Employees are now mindful of their health and therefore adhering to all COVID-19 protocols by regular use of nose mask, hand sanitizers, regular washing of hands, distancing among others. However, the evidence is that for many employees, the protocols are no longer needed since His Excellency the president Nana Addo Dankwa Akuffo Addo relaxed the COVID-19 protocols and declared the wearing of face mask non-mandatory health health sector sector have have to to risk risk their their lives lives to to work work assiduously assiduously to to save save the the lives lives of of the the affected affected people. people.

down down including including our our borders. borders. The The government government has to relieve citizens by providing has to relieve citizens by providing subsidies subsidies on on electricity electricity and and water water bills bills for for some some months months rather increasing government expenditure. rather increasing government expenditure.

There Therewere weresensitization sensitizationprograms programsto tocreate create awareness awareness of of staff staff on on the the outbreak outbreak and and the the necessary necessary steps steps to to take take in in order order not not to to be be affected affected and and ifif contracted contracted how how to to take take care care of one’s life and the people around. of one’s life and the people around. Again, Again, some some organization’s organization’s introduced introduced the the shift-system shift-systemto toenable enableemployees employeeswork workspaspacious cious office office to to help help sustain sustain the the employer employer in in business business in in addition addition to to virtual virtual office office and and working working from from home home and and holding holding meetings meetings through-electronic through-electronicplatforms platformssuch suchas asZoom, Zoom, Microsoft, Cisco Webex, and Facebook Microsoft, Cisco Webex, and Facebooketc. etc.

COVID-19 COVID-19 encouraged encouraged sole sole proprietorship proprietorship as as many many persons persons resorted resorted to to survival survival business business ventures ventures to to control control and and ameliorate ameliorate the the situasituation. tion. Moreover, Moreover, organizations organizations were were not not left left out in the calamity, employers have to strateout in the calamity, employers have to strategize gize to to protect protect both both the the employees employees and and the the employer employer to to remain remain in in business. business. Employers Employers had had to to continue continue to to pay pay for for the the medical medical expenses expenses of of employees employees who who were were affected affected financially financially by by COVID-19. COVID-19. Unfortunately, Unfortunately, some some employees employees lost lost their their lives lives whiles whiles others others also also lose losetheir theirjobs jobsbecause becausetheir theirschedule schedulewas wasnot not needed neededat atthe thetime. time.

In In furtherance, furtherance, employer’s employer’s expenditure expenditure increased increased because because extra extra funds funds had had to to be be spent to reengineer the work place to spent to reengineer the work place to ensure ensurethat thatthe theworkplace workplaceisissafe safeby bythe thepurpurchasing of thermometer guns, hand sanitizchasing of thermometer guns, hand sanitizers, ers,nose nosemask,veronica mask,veronicabuckets bucketsetc. etc.

There There was was limited limited access access to to health health care care and and delay delayin intreatment treatmentdue dueto tothe therisk riskin inCOVID-19 COVID-19 cases. cases. Some Some workers workers especially especially those those in in the the

Groups Groups and and individuals’ individuals’ social social lives lives were were affected because there were restrictions affected because there were restrictions on on movements movementsby bythe thegovernment, government,the themost most

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COVID-19 and Human Resource Issues

A NEW THINKING

remembered remembered one one in in Ghana Ghana was was the the three three (3) (3) weeks weeks partial partial lock lock down down in in Greater Greater Accra, Accra, Tema, Tema, Kasoa Kasoa and and Greater Greater Kumasi. Kumasi. The The locklockdown down confinement confinement measures measures made made people people feel feel bored bored and and isolated isolated which which negatively negatively affected affectedtheir theirpsychological psychologicalhealth. health. Effects Effects Of Of Covid-19 Covid-19 On On The The Employer Employer March,2021 March,2021 marks marks one one year year since since the the beginbeginning ningof ofstate-mandatory state-mandatorystay-at-home stay-at-homeorders orders and and workplace workplace shutdowns shutdowns due due to to the the global global COVID-19 COVID-19in inGhana. Ghana. Some Some employers employers most most especially especially those those in in the the micro, micro, small small enterprises enterprises entirely entirely shut shut down down their their businesses businesses to to protect protect the the lives lives of of the the employees employeesand andalso alsoto tosave savecost. cost.While Whileothers others had had their their business business collapsed collapsed due due to to the the panpandemic. demic. Moreso, Moreso, employer’s employer’s expenditure expenditure increased increased due due to to measures measures put put in in place place to to ensure ensure there there isis safety safety at at the the workplace. workplace. This This included included the the purchasing purchasing of of thermometer thermometer guns, guns, hand hand sanisanitizers, tizers,nose nosemask, mask,veronica veronicabuckets bucketsetc. etc. Other Other employers employers suffered suffered loss loss of of revenue revenue because because patronage patronage was was low low and and for for others others there there was was no no patronage. patronage. One One cannot cannot forget forget also also employees employees who who are are still still having having long-term long-term effects effects experiencing experiencing greater greater levels levels of of depression depression or or anxiety anxiety as as there there are are many many reports reports of of higher higher absence absence rates rates and and lower lower productivity productivity all all due due to to COVID-19. COVID-19. These These have have affected affectedthe thefinancial financialbase baseof ofmost mostemployers employers since sincethey theywere werehit hitwith withunbudgeted unbudgetedexpendiexpenditure ture to to take take care care of of COVID-19 COVID-19 positive positive employees’ employees’ medical medical expenses. expenses. Besides Besides these these problems, problems, employers employers have have currently currently have have the the difficult difficult of of ensuring ensuring that that their their operations operations of time. time. This This situation situation has has stand stand the the test test of necessitated necessitated some some employers employers to to seek seek for for financial financial support support to to revamp revamp their their operations. operations. In In addition, addition, the the instances instances of of unfair unfair terminatermination tion by by some some employers employers isis putting putting pressure pressure on on the the few few employees employees at at post. post. Some Some employemployees ees whose whose jobs jobs were were classified classified as as non–essennon–essential tial had had to to look look for for alternate alternate jobs jobs because because of of unfair unfair termination termination by by their their employers, employers, the the legal legalissues issuessurrounding surroundingthese theseunfair unfairterminatermination tionisisaachallenge challengefor formany manyorganizations organizationsand and their their HRs. HRs.

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Employees Employees are are now now mindful mindful of of their their health health and andtherefore thereforeadhering adheringto toall allCOVID-19 COVID-19proprotocols tocols by by regular regular use use of of nose nose mask, mask, hand hand sanitizers, sanitizers,regular regularwashing washingof ofhands, hands,distancdistancing ing among among others. others. However, However, the the evidence evidence isis that that for for many many employees, employees, the the protocols protocols are are no no longer longer needed needed since since His His Excellency Excellency the the president president Nana Nana Addo Addo Dankwa Dankwa Akuffo Akuffo Addo Addo relaxed relaxed the the COVID-19 COVID-19 protocols protocols and and declared declaredthe thewearing wearingof offace facemask masknon-mannon-mandatory. datory. What What should should the the HR HR Function Function in in organiorganizations zationsdo dogoing goingforward? forward? Although Although COVID-19 COVID-19 has has many many negativities negativities associated associated with with it, it, COVID-19 COVID-19 has has push push the the boundary boundaryof ofinnovativeness innovativenessand andcreativity creativityof of individuals individuals thereby thereby creating creating job job opportuniopportunities tiesmost mostespecially especiallyfor forthose thosein inthe thetechnoltechnology ogy value value chain. chain. Many Many families families were were re-unitre-united edbecause becausethere therewere wererestrictions restrictionson onmovemovements. ments. Several Several persons persons have have become become perpersonal-hygiene sonal-hygiene conscious conscious and and mindful mindful of of their their health health by by adhering adhering to to the the COVID-19 COVID-19 protocols. protocols. Ghana GhanaHealth HealthService Service(GHS) (GHS)has hasadmonished admonished that that this this pandemic pandemic has has come come to to stay stay so so all all and andsundry sundrymust mustnot notrelent relentin inadhering adheringto toall all the the laid laid down down safety safety protocols. protocols. OrganizaOrganizations tions have have to to put put in in strategies strategies for for adaptable adaptable working working conditions conditions and and must must have have flexible flexible working workingconditions. conditions.Subsequently, Subsequently,organizaorganizations tions must must sharpen sharpen the the critical critical skills skills of of employees employees to to be be able able to to meet meet their their target. target. Furthermore, Furthermore, organizations organizations must must refer refer HR HR Legal Legalissues issuesto tolegal legalexperts expertsfor foradvice advicewhen when itit becomes becomes necessary necessary most most especially especially in in the the area area of of employee employee job job rotation, rotation, job job security security and and the the termination termination of of non-essential non-essential job job roles. roles. The TheHR HRfunction functionshould shouldcontinue continueto tosensitize sensitize employee employee to to embrace embrace personal personal hygiene hygiene and and continue continueto toobserve observethe theCOVID-19 COVID-19protocols protocols for for their their personal personal safety safety even even as as many many orgaorganizations nizations and and economies economies around around the the world world relax relaxthe theCOVID-19 COVID-19protocols. protocols. AUTHOR: AUTHOR:Juliana JulianaAmoah Amoah Deputy Deputy Human Human Resource Resource Manager Manager Forest Forest Services Services Division, Division,Forestry ForestryCommission CommissionGhana Ghana

COVID-19 and Human Resource Issues

Lifestyle

Blending Music with Entrepreneurship:

The story of Ade Kunle Crown

INVESTMENT TIMES

If fthere therewas wasever everaaperfect perfectblend blendofofhip hiphop hopand and Nigerian influences, K Crown would be it. He's the artist you didn't realize you needed in your ear phones. He can deliver powerful music and lyrics while also dialing it back to serve subtle and sweet notes as the song requires. Ade Kunle Crown, who is professionally known as K Crown is a Nigerian musician, songwriter, performer, businessman and a philanthropist. He is originally from Osun state but was born in Kaduna Northern part of Nigeria. K Crown is the last child of a family of five who were compelled to return to Osun state after the death of his father due to the sharia conflict in the 90s. As a child, he was drawn to music and became quite proficient. He began his musical journey as a member of the choir and instrumentalist in children's church. His passion for music prompted him to begin creating songs and even composing songs for his church for special occasions. Since the age of 12, he has won multiple prizes in church singing competitions, further fueling his passion for music. After graduating high school in 2011, Leaving just church music to pursue a career in music, he began performing professionally. His love for music led him to learn how to start recording himself when he was a teenager. K Crown worked consistently on his vocals in private. His vocal ability was so good, however, that his secret could not be contained. He began to get requests to join choirs. In addition, young K Crown received continuous bookings to perform at concerts and other events as he grew. In 2012, he released his debut single Rock the party while working as an apprentice producer Tourism with Music World Entertainment. In 2013, he released Motherly Love followed by some other mind-blowing singles. And in 2014 he performed for Osun State Governor Ogeni Raufu Adesoji Aregbesola at a rally for his second run during an election in Ede. He first gained his public recognition when he dropped his EP K Crown Vibes in 2020, which featured hit songs like Gee 4 Life and Broke. His versatility in hip-pop music has earned him massive attention from all around the world.

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K Crown admits that he is a lover of more hip-hop and afro sounds. He has been influenced by some popular artists like Fela, Lagbaja, Beautiful nubia, 2face, D’banj, Akon, R2bees, Wizkid Davido, most especially Olamide whom he regards as his mentor. As an entrepreneur along his journey in music, in early 2020, K Crown formed his record label called G4L Records which he made official in late 2021, this was been a dream come true that he has been planning for this for a very long time. The record label is managed with the help of his manager popularly known as Doughty and some close friends. “I remember we would be in church for more than 3 hours singing and just to prepare for Sunday’s praise and worship, we would sing to the extent that we would start writing and composing our own song and practice it, then sing it in church the next Sunday and people will dance and start spraying us money in church. to me it was interesting, making money from singing, something I was always happy and eager to do for free, as at that time I did not even understand that making music can be someone’s profession I just love to do it “ said K Crown when speaking on an interview about his early life and how he developed love for music with Metro FM South Africa in 2020. K Crown defined his latest Extended Play (EP), K Crown Vibes, as "very straightforward, radio friendly, with different vibes" when it was released in 2020. On all streaming platforms, the project has received over 70,000 streams and is still counting. This demonstrates how quickly his fan base has grown. He has also hinted to his followers that he will release another body of work later this year, though he has yet to reveal the project's title or release date. He has urged the public to show him more love and support than ever before when he releases his upcoming EP.

Blending music with ntrepreneurship:The story of Ade Kunle Crown

A NEW THINKING

A few of the popular musicians that he has featured are artists like CDQ, Kosere, and has also had the chance to work with producers like, Vibe Ace, BMB, Taleenbeats, Vibes Machine, Jovi Cas and more. K Crown isn't just a musician, he's a true believer in it, as evidenced by his intensity and activity in his song video. His visuals are available on YouTube. All K Crown music is available on iTunes, Spotify, deezer, audiomack, etc. “Music is life, and it's very spiritual, a very powerful weapon, it's inspired me to take my life to another level and made me realize and see things from a different perspective; when I first started making music, I thought it was all about the money, cars, girls, and flashy lifestyle; however, as I've grown older, I've realized that it's not about all of that; it's about putting your life and struggles, and most importantly, your experience, into art and using it to inspire the next generation and the next to come. My ultimate objective and mission as a musician is to tour across the world with my music and support my family so that even when I leave this planet, the next generation can still refer to my songs and use my music as a reference of what's going on in the world.” These were words of K Crown in another interview with radio presenter K buggy of Splash FM. ibadan Nigeria in 2021. Although such artists' effects can be heard, K Crown is undeniably an exceptional artist. K Crown is also a fantastic songwriter, which complements his incredible musical ability. His words transport you to levels and paces that only those who have experienced or should experience love will comprehend. K Crown is currently based in South Africa, where he is pursuing his music career while also completing his studies in travel and tourism management at Vaal University of Technology.

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To hear K Crown sing is one thing. To see him perform is confirmation that we are witnessing the next star in the world of music. His performances are captivating and it is evident that he dedicates the same amount of energy whether performing for

I remember we would be in church for more than 3 hours singing and just to prepare for Sunday’s praise and worship, we would sing to the extent that we would start writing and composing our own song and practice it, then sing it in church the next Sunday and people will dance and start spraying us money in church. to me it was interesting, making money from singing, something I was always happy and eager to do for free, as at that time I did not even understand that making music can be someone’s profession I just love to do it small crowds or large audiences. K Crown is a name that you will want to remember. But if ever it slips you, you won’t forget once his music takes hold of you. Social handles; Instagram: K_crowntinz Twitter: K_crownoffical

Blending music with ntrepreneurship:The story of Ade Kunle Crown

Russia-African relations

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Russia-African relations TIMES INVESTMENT

Russia-African relations in the context of geopolitical changes

By Kester Kenn Klomegah

Russia ussia needs needs to to go go beyond beyond its its traditional traditional Russia Russia needs needs to to go go beyond beyond its its traditional traditional rhetoric rhetoricof of ofSoviet Soviet Sovietassistance assistance assistancerendered rendered renderedto to to rhetoric rhetoric of Soviet assistance rendered to Africa. Africa.ItItItItisis important importantnow now nowto to tohighlight highlight highlightconconconAfrica. Africa. isisimportant important now to highlight concrete cretesuccess success successstories stories storiesand and andpolicy policy policyachieveachieveachievecrete crete success stories and policy achievements, ments,at at atleast, least, least,during during duringthe the thepast past pastdecade decade decadein in in ments, ments, at least, during the past decade in Africa. Africa. The The The young young young generation generation generation and and and the the the Africa. Africa. The young generation and the middle middleclass, class, class,aged aged agedbetween between between25 25 25to to to45 45 45that that that middle middle class, aged between 25 to 45 that make makethe the thebulk bulk bulkof of ofthe the the1.3 1.3 1.3billion billion billionpopulation, population, population, make make the bulk of the 1.3 billion population, hardly hardlysee see seethe the thebroad broad broadpositive positive positiveimpact impact impact impactof of of ofRusRusRusRushardly hardly see the broad positive sia's sia'seconomic economic economiccooperation cooperation cooperationwith with withAfrica. Africa. Africa. sia's sia's economic cooperation with Africa. Russia Russiaplans plans plansto to tohold hold holdthe the thesecond second secondRussia-AfriRussia-AfriRussia-AfriRussia Russia plans to hold the second Russia-Africa casummit summit summitlater later laterthis this thisyear. year. year.Sergey Sergey SergeyLavrov, Lavrov, Lavrov, ca ca summit later this year. Sergey Lavrov, Minister Ministerof of ofForeign Foreign ForeignAffairs Affairs Affairsof of ofthe the theRussian Russian Russian Minister Minister of Foreign Affairs of the Russian Federation, Federation,indicated indicated indicatedin in inmid-June mid-June mid-Junemessage message message Federation, Federation, indicated in mid-June message that that"in "in "inthese these thesedifficult difficult difficultand and andcrucial crucial crucialtimes times timesthe the the that that "in these difficult and crucial times the strategic strategic partnership partnership partnership with with with Africa Africa Africa has has has strategic strategic partnership with Africa has become becomeaaaapriority priority priorityof of ofRussia's Russia's Russia'sforeign foreign foreignpolicy. policy. policy. become become priority of Russia's foreign policy. Russia Russiahighly highly highlyappreciates appreciates appreciatesthe the thereadiness readiness readinessof of of Russia Russia highly appreciates the readiness of Africans Africansto to tofurther further furtherstep-up step-up step-upeconomic economic economiccoopcoopcoopAfricans Africans to further step-up economic cooperation." eration." eration." eration."

Business Loans

to toeach each eachother's other's other'smarkets markets marketsand and andencourage encourage encouragetheir their their to to each other's markets and encourage their participation participationin in inlarge-scale large-scale large-scaleinfrastructure infrastructure infrastructureprojprojprojparticipation participation in large-scale infrastructure projects. ects.The The Thesigned signed signedagreements agreements agreementsand and andthe the theresults results results ects. ects. The signed agreements and the results will will be be be consolidated consolidated consolidated at at at the the the forthcoming forthcoming forthcoming will will be consolidated at the forthcoming second secondRussia-Africa Russia-Africa Russia-Africasummit." summit." summit." second second Russia-Africa summit." The Theabove above abovestatement statement statementarguably arguably arguablyoffers offers offerssome some some The The above statement arguably offers some implications implicationsespecially especially especiallydiscussing discussing discussingthis this thisquesquesquesimplications implications especially discussing this question tion of of of relationship-building. relationship-building. relationship-building. Nevertheless, Nevertheless, Nevertheless, tion tion of relationship-building. Nevertheless, asserted that thatwithin within withinthe the the Lavrov Lavrovhas has has aptly aptly aptly asserted assertedthat that within the Lavrov Lavrov has aptly asserted "emerging "emergingand and andsustainable sustainable sustainablepolycentric polycentric polycentricarchiarchiarchi"emerging "emerging and sustainable polycentric architecture tectureof of ofthe the theworld world worldorder" order" order"relations relations relationswith with with tecture tecture of the world order" relations with Africa Africaisis still stillaaaapriority, priority, priority,but but butRussians Russians Russiansalways always always Africa Africa isisstill still priority, but Russians always close closetheir their theireyes eyes eyeson on onthe the thefact fact factthat that thatRussia's Russia's Russia's close close their eyes on the fact that Russia's foreign foreignpolicy policy policyin in inAfrica Africa Africahas has haslargely largely largelyfailed failed failedto to to foreign foreign policy in Africa has largely failed to pronounce pronounce itself, itself, itself, in in in practical practical practical terms, terms, terms, as as as pronounce pronounce itself, in practical terms, as evidenced evidencedby by bythe the thecountable countable countableforays forays foraysinto into intoAfrica Africa Africa evidenced evidenced by the countable forays into Africa by byRussian Russian Russianofficials. officials. officials. by by Russian officials.

For all your business loans, visit any ofwas our The The Soviet Soviet Soviet Union Union Union was was quite quite quite extensively extensively extensively The The Soviet Union was quite extensively engaged engaged with with Africa, Africa, comparatively. comparatively. Russians Russians engaged with with Africa, Africa, comparatively. Russians Russians 114 branches nationwideengaged or talk to uscomparatively. onother have haveonly only onlybeen been beencriticizing criticizing criticizingother otherforeign foreign foreignplayplayplayhave have only been criticizing other foreign players ersduring during duringthe the thepast past pasttwo two twodecades decades decadeswithout without without ers ers during the past two decades without Lavrov Lavrov said: said:"It "It "Itisis in inthe the theinterests interests interests our ourpeopeopeoLavrov Lavrov said: said: "It isisin in the interests our peo0302-216000 . ofofofofour showing showingany any anymodel model modelof of ofbuilding building buildingrelationship. relationship. relationship. showing showing any model of building relationship. ples ples to to to work work work together together together to to to preserve preserve preserve and and and ples ples to work together to preserve and expand expand mutually mutually mutually beneficial beneficial beneficial trade trade trade and and and expand expand mutually beneficial trade and Think Loans, think CBG. investment investment ties tiesunder under under these these new newconditions. conditions. conditions. investment investment ties ties under these these new new conditions. important importantto to tofacilitate facilitate facilitatethe the themutual mutual mutualaccess access access ItItItItisis isisimportant important to facilitate the mutual access of ofRussian Russian Russianand and andAfrican African Africaneconomic economic economicoperators operators operators of of Russian and African economic operators

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Its Itsforeign foreign foreignpolicy policy policygoals goals goalsare are aredirected directed directedsimply simply simplyat at at Its Its foreign policy goals are directed simply at sustaining sustainingthe the thepassion passion passionfor for forsigning signing signingseveral several several sustaining sustaining the passion for signing several MoUs MoUsand and andbilateral bilateral bilateralagreements agreements agreementswith with withAfrican African African MoUs MoUs and bilateral agreements with African countries. countries. countries. countries.

Russia-African relations in the context of geopolitical changes

A NEW THINKING

During During the past years there have been several Duringthe thepast pastyears yearsthere therehave havebeen beenseveral several During the past years there have been several symbolic symbolic meetings of bilateral intergovernsymbolicmeetings meetingsof ofbilateral bilateralintergovernintergovernsymbolic meetings of bilateral intergovernmental mental commissions both in Moscow and in mentalcommissions commissionsboth bothin inMoscow Moscowand andin in mental commissions both in Moscow and in Africa. Africa. The first historic summit discussed Africa.The Thefirst firsthistoric historicsummit summitdiscussed discussed Africa. The first historic summit discussed broadly broadly the priorities and further identified broadlythe thepriorities prioritiesand andfurther furtheridentified identified broadly the priorities and further identified opportunities opportunities for collaboration. It, however, opportunitiesfor forcollaboration. collaboration.It, It,however, however, opportunities for collaboration. It, however, requires requires understanding the tasks and the requires understanding understanding the the tasks tasks and and the the requires understanding the tasks and the emerging emerging challenges. The current tasks should emergingchallenges. challenges.The Thecurrent currenttasks tasksshould should emerging challenges. The current tasks should concretely concretely focus on actionable strategies concretely focus focus on on actionable actionable strategies strategies concretely focus on actionable strategies towards towards enhancing the effective implementatowardsenhancing enhancingthe theeffective effectiveimplementaimplementatowards enhancing the effective implementation tion of existing bilateral agreements, taking tionof ofexisting existingbilateral bilateralagreements, agreements,taking taking tion of existing bilateral agreements, taking practical practical collaborated actions leading to practical collaborated collaborated actions actions leading leading to to practical collaborated actions leading to goal-driven goal-driven results. Nevertheless, Lavrov goal-driven results. results. Nevertheless, Nevertheless, Lavrov Lavrov goal-driven results. Nevertheless, Lavrov hopes hopes "the signed agreements and the results hopes"the "thesigned signedagreements agreementsand andthe theresults results hopes "the signed agreements and the results will will be consolidated at the forthcoming will be be consolidated consolidated at at the the forthcoming forthcoming will be consolidated at the forthcoming second second Russia-Africa summit." secondRussia-Africa Russia-Africasummit." summit." second Russia-Africa summit." Still, Still, Russia plays very little role in Africa's Still,Russia Russiaplays playsvery verylittle littlerole rolein inAfrica's Africa's Still, Russia plays very little role in Africa's infrastructure, infrastructure, agriculture and industry, and infrastructure,agriculture agricultureand andindustry, industry,and and infrastructure, agriculture and industry, and similarly similarly making tiny efforts to leverage unto similarlymaking makingtiny tinyefforts effortsto toleverage leverageunto unto similarly making tiny efforts to leverage unto the the African Continental Free Trade Area the African African Continental Continental Free Free Trade Trade Area Area the African Continental Free Trade Area (AfCFTA). (AfCFTA). While, given its global status, (AfCFTA).While, While,given givenits itsglobal globalstatus, status,itititit (AfCFTA). While, given its global status, ought ought to be active in Africa as Western ought to to be be active active in in Africa Africa as as Western Western ought to be active in Africa as Western Europe, Europe, the European Union, America and Europe,the theEuropean EuropeanUnion, Union,America Americaand and Europe, the European Union, America and China China are, all but absent, playing negliChinaare, are,ititititisis allbut butabsent, absent,playing playingaaaaneglinegliChina are, isisall all but absent, playing negligible gible role, according to Professor Gerrit Olivigiblerole, role,according accordingto toProfessor ProfessorGerrit GerritOliviOlivigible role, according to Professor Gerrit Olivier er at the Department of Political Sciences, erat atthe theDepartment Departmentof ofPolitical PoliticalSciences, Sciences, er at the Department of Political Sciences, University University of Pretoria, and former South AfriUniversityof ofPretoria, Pretoria,and andformer formerSouth SouthAfriAfriUniversity of Pretoria, and former South African can Ambassador to the Russian Federation. canAmbassador Ambassadorto tothe theRussian RussianFederation. Federation. can Ambassador to the Russian Federation. Researchers Researchers have been making tangible conResearchershave havebeen beenmaking makingtangible tangibleconconResearchers have been making tangible contributions tributions to the development of African studtributionsto tothe thedevelopment developmentof ofAfrican Africanstudstudtributions to the development of African studies ies in Russia. This Moscow-based Africa Instiiesin inRussia. Russia.This ThisMoscow-based Moscow-basedAfrica AfricaInstiInstiies in Russia. This Moscow-based Africa Institute tute has huge pack of research materials tutehas hasaaaahuge hugepack packof ofresearch researchmaterials materials tute has huge pack of research materials useful useful for designing an African agenda. In an usefulfor fordesigning designingan anAfrican Africanagenda. agenda.In Inan an useful for designing an African agenda. In an interview, interview, Professor Vladimir Shubin at the interview,Professor ProfessorVladimir VladimirShubin Shubinat atthe the interview, Professor Vladimir Shubin at the Institute Institute for African Studies, Russian Academy Institutefor forAfrican AfricanStudies, Studies,Russian RussianAcademy Academy Institute for African Studies, Russian Academy of of Sciences reiterated that Russia not doing ofSciences Sciencesreiterated reiteratedthat thatRussia Russiaisis notdoing doing of Sciences reiterated that Russia isisnot not doing enough enough to communicate to the broad sectors enoughto tocommunicate communicateto tothe thebroad broadsectors sectors enough to communicate to the broad sectors of of the public, particularly in Africa, true inforofthe thepublic, public,particularly particularlyin inAfrica, Africa,true trueinforinforof the public, particularly in Africa, true information mation about its domestic and foreign polimationabout aboutits itsdomestic domesticand andforeign foreignpolipolimation about its domestic and foreign policies cies as well as the accomplishments of Rusciesas aswell wellas asthe theaccomplishments accomplishmentsof ofRusRuscies as well as the accomplishments of Russia's sia's economy, science and technology to sia'seconomy, economy,science scienceand andtechnology technologyto to sia's economy, science and technology to form form positive perception of Russia within the formaaaapositive positiveperception perceptionof ofRussia Russiawithin withinthe the form positive perception of Russia within the context context of the current global changes of the contextof ofthe thecurrent currentglobal globalchanges changesof ofthe the context of the current global changes of the 21st 21st century. 21stcentury. century. 21st century. As As to Russia's involvement, has undoubtedly Asto toRussia's Russia'sinvolvement, involvement,itititithas hasundoubtedly undoubtedly As to Russia's involvement, has undoubtedly aaaavast vast experience in development of projects vastexperience experiencein indevelopment developmentof ofprojects projects vast experience in development of projects

51 investmenttimesonline.com

in in Africa accumulated during Soviet times, inAfrica Africaaccumulated accumulatedduring duringSoviet Soviettimes, times, in Africa accumulated during Soviet times, building building of of powerstations powerstations and and dams dams or building of of powerstations powerstations and and dams dams or or building or creating creating of technological training institutes. creatingof oftechnological technologicaltraining traininginstitutes. institutes. creating of technological training institutes. What What lacking nowadays its ability to Whatisis lacking lackingnowadays nowadays nowadaysisis isisits its itsability ability abilityto to to What isislacking provide provide large investments, according to provide large large investments, investments, according according to to provide large investments, according to Shubin, Shubin, "but "but Russian Russian expertise expertise and and technoltechnolShubin, "but "but Russian Russian expertise expertise and andtechnoltechnolShubin, ogy ogy can still be used while carrying out ogycan canstill stillbe beused usedwhile whilecarrying carryingout out ogy can still be used while carrying out internationally-financed internationally-financed projects projects in in Africa." Africa." internationally-financedprojects projectsin inAfrica." Africa." internationally-financed As As to the failures, perhaps, we have to point Asto tothe thefailures, failures,perhaps, perhaps,we wehave haveto topoint point As to the failures, perhaps, we have to point to to the lack of deep knowledge of African tothe thelack lackof ofdeep deepknowledge knowledgeof ofAfrican African to the lack of deep knowledge of African conditions, conditions, especially at the initial stage of conditions,especially especiallyat atthe theinitial initialstage stageof of conditions, especially at the initial stage of the the involvement which sometimes resulted theinvolvement involvementwhich whichsometimes sometimesresulted resulted the involvement which sometimes resulted in in suggesting (or agreeing to) unrealistic insuggesting suggesting(or (oragreeing agreeingto) to)unrealistic unrealistic in suggesting (or agreeing to) unrealistic projects, projects, But there are good prospects for projects,But Butthere thereare aregood goodprospects prospectsfor for projects, But there are good prospects for reactivating reactivating diversified diversified cooperation, cooperation, he he reactivating diversified diversified cooperation, cooperation, he he reactivating explained. explained. explained. explained. Chronological Chronological analysis shows that Russia's Chronologicalanalysis analysisshows showsthat thatRussia's Russia's Chronological analysis shows that Russia's politics politics toward toward Africa Africa under under President President Boris politics toward toward Africa Africa under under President PresidentBoris Boris politics Boris Yeltsin Yeltsin (1991-2001) was described as lost Yeltsin(1991-2001) (1991-2001)was wasdescribed describedas asaaaalost lost Yeltsin (1991-2001) was described as lost decade, decade, both both in in internal internal and and external external affairs, affairs, decade,both bothin ininternal internaland andexternal externalaffairs, affairs, decade, including including relations with Africa. Historical includingrelations relationswith withAfrica. Africa.Historical Historical including relations with Africa. Historical

Russia-African relations in the context of geopolitical changes

INVESTMENT TIMES

more more than 60 years ago, will definitely not more than 60 years ago, will definitely not morethan than60 60years yearsago, ago,will willdefinitely definitelynot not facilitate facilitate the expected beneficial trade and facilitate the expected beneficial trade and facilitatethe theexpected expectedbeneficial beneficialtrade tradeand and investment investment ties under these new conditions. investment ties under these new conditions. investmentties tiesunder underthese thesenew newconditions. conditions. The The United Nations declared Africa fully indeThe United Nations declared Africa fully indeTheUnited UnitedNations Nationsdeclared declaredAfrica Africafully fullyindeindependent pendent in 1960, and Organization of African pendent in 1960, and Organization of African pendentin in1960, 1960,and andOrganization Organizationof ofAfrican African Unity Unity (OAU) was formed on 25 May 1963 in Unity (OAU) was formed on 25 May 1963 in Unity(OAU) (OAU)was wasformed formedon on25 25May May1963 1963in in Addis Addis Ababa, Ethiopia. Addis Ababa, Ethiopia. AddisAbaba, Ababa,Ethiopia. Ethiopia. Afreximbank Afreximbank President and Chairman of the Afreximbank President and Chairman of the AfreximbankPresident Presidentand andChairman Chairmanof ofthe the Board Board of Directors, Dr. Benedict Okey Board of Directors, Dr. Benedict Okey Board of of Directors, Directors, Dr. Dr. Benedict Benedict Okey Okey Oramah, Oramah, says Russian officials "keep remindOramah, says Russian officials "keep remindOramah,says saysRussian Russianofficials officials"keep "keepremindreminding ing us about Soviet era" but the emotional ing us about Soviet era" but the emotional ingus usabout aboutSoviet Sovietera" era"but butthe theemotional emotional link link has simply not been used in transforming link has simply not been used in transforming linkhas hassimply simplynot notbeen beenused usedin intransforming transforming relations. relations. Oramah said one of Russia's major relations. Oramah said one of Russia's major relations.Oramah Oramahsaid saidone oneof ofRussia's Russia'smajor major advantages advantages was the goodwill. He remarked advantages was the goodwill. He remarked advantageswas wasthe thegoodwill. goodwill.He Heremarked remarked that that even young people in Africa knew how that even young people in Africa knew how thateven evenyoung youngpeople peoplein inAfrica Africaknew knewhow how Russia Russia helped African people fight for indeRussia helped African people fight for indeRussiahelped helpedAfrican Africanpeople peoplefight fightfor forindeindependence. pendence. "So an emotional link isisthere," there," he pendence. "So an emotional link there," he pendence."So "Soan anemotional emotionallink linkisis there,"he he told told Inter-Tass News Agency. told Inter-Tass News Agency. toldInter-Tass Inter-TassNews NewsAgency. Agency.

documents documents further show that after the Soviet documents further show that after the Soviet documentsfurther furthershow showthat thatafter afterthe theSoviet Soviet collapse collapse there were approximately 380 projcollapse there were approximately 380 projcollapsethere therewere wereapproximately approximately380 380projprojects ects throughout throughout Africa. Africa. In In the the early early 1990s, 1990s, ects throughout Africa. In the early 1990s, ects throughout Africa. In the early 1990s, Russia Russia swiftly exited, closed number of dipRussia swiftly exited, closed number of dipRussiaswiftly swiftlyexited, exited,closed closedaaaanumber numberof ofdipdiplomatic lomatic offices offices and and abandoned abandoned all all these, these, and and lomatic offices and abandoned all these, and lomatic offices and abandoned all these, and hardly hardly no sign of Soviet-era infrastructure hardly no sign of Soviet-era infrastructure hardlyno nosign signof ofSoviet-era Soviet-erainfrastructure infrastructure projects projects there. there. projects there. projects there.

The The biggest thing that happened in Africa The biggest thing that happened in Africa Thebiggest biggestthing thingthat thathappened happenedin inAfrica Africa was was the establishment of the African Contiwas the establishment of the African Contiwasthe theestablishment establishmentof ofthe theAfrican AfricanContiContinental nental Free Trade Area (AfCFTA). That isisaaaa nental Free Trade Area (AfCFTA). That nentalFree FreeTrade TradeArea Area(AfCFTA). (AfCFTA).That Thatisis huge huge game-changer, and steps have been huge game-changer, and steps have been hugegame-changer, game-changer,and andsteps stepshave havebeen been made made lately in the African countries for creatmade lately in the African countries for creatmadelately latelyin inthe theAfrican Africancountries countriesfor forcreatcreating ing better conditions for business developing better conditions for business developingbetter betterconditions conditionsfor forbusiness businessdevelopdevelopment ment and shaping attractive investment ment and shaping attractive investment ment and and shaping shaping attractive attractive investment investment climate. climate. "Sometimes, isisdifficult difficult to underclimate. "Sometimes, difficult to underclimate."Sometimes, "Sometimes,ititititisis difficultto tounderunderstand stand why the Russians are not taking advanstand why the Russians are not taking advanstandwhy whythe theRussians Russiansare arenot nottaking takingadvanadvantage tage of it? We have the Chinese, we have the tage of it? We have the Chinese, we have the tageof ofit? it?We Wehave havethe theChinese, Chinese,we wehave havethe the Americans, Americans, we have the Germans who are Americans, we have the Germans who are Americans,we wehave havethe theGermans Germanswho whoare are operating operating projects…That isisaaaavery, very, very promoperating projects…That very, very promoperatingprojects…That projects…Thatisis very,very veryprompromising ising area," Oramah said in his interview last ising area," Oramah said in his interview last isingarea," area,"Oramah Oramahsaid saidin inhis hisinterview interviewlast last year. year. year. year.

Policy Policy statements have indicated strong optiPolicy statements have indicated strong optiPolicystatements statementshave haveindicated indicatedstrong strongoptioptimism mism for raising relations. That however, at mism for raising relations. That however, at mismfor forraising raisingrelations. relations.That Thathowever, however,at at least least during during the the past past decade, decade, official official reports reports least during the past decade, official reports least during the past decade, official reports including including sparkling speeches at high-level including sparkling speeches at high-level including sparkling sparkling speeches speeches at at high-level high-level conferences, conferences, summits summits and and meetings meetings indicated conferences, summits and meetings indicated conferences, summits and meetings indicated indicated there there are projects being implemented in Africa there are projects being implemented in Africa thereare areprojects projectsbeing beingimplemented implementedin inAfrica Africa by by such such leading leading Russian Russian businesses businesses as as Rosneft, Rosneft, by such leading Russian businesses as Rosneft, by such leading Russian businesses as Rosneft, Lukoil, Lukoil, Rosgeo, Gazprom, Alrosa, Vi Holding, Lukoil, Rosgeo, Gazprom, Alrosa, Vi Holding, Lukoil,Rosgeo, Rosgeo,Gazprom, Gazprom,Alrosa, Alrosa,Vi ViHolding, Holding, GPB GPB Global Global Resources Resources and and Renova. Renova. GPB Global Resources and Renova. GPB Global Resources and Renova.

Ahead Ahead of Sochi summit 2019, Oramah preAhead of Sochi summit 2019, Oramah preAheadof ofSochi Sochisummit summit2019, 2019,Oramah Oramahprepresented sented report to special business confersented report to special business confersentedaaaareport reportto toaaaaspecial specialbusiness businessconferconference ence that ran from 18 to 22 June, the same ence that ran from 18 to 22 June, the same encethat thatran ranfrom from18 18to to22 22June, June,the thesame same year, year, and listed spheres for possible cooperayear, and listed spheres for possible cooperayear,and andlisted listedspheres spheresfor forpossible possiblecooperacooperation tion such as finances, energy, mining, railway tion such as finances, energy, mining, railway tionsuch suchas asfinances, finances,energy, energy,mining, mining,railway railway infrastructure, infrastructure, digital technologies, cyberseinfrastructure, digital technologies, cyberseinfrastructure,digital digitaltechnologies, technologies,cybersecybersecurity, curity, healthcare, education, food security in curity, healthcare, education, food security in curity,healthcare, healthcare,education, education,food foodsecurity securityin in Africa. Africa. Africa. Africa.

Nevertheless, Nevertheless, isisso so common reiterating that Nevertheless, so common reiterating that Nevertheless,ititititisis socommon commonreiterating reiteratingthat that Russia Russia has always been on Africa's side in the Russia has always been on Africa's side in the Russiahas hasalways alwaysbeen beenon onAfrica's Africa'sside sidein inthe the fight fight against against colonialism colonialism and and now now neo-coloneo-colofight against colonialism and now neo-colofight against colonialism and now neo-colonialism. nialism. The frequency of reminding again and nialism. The frequency of reminding again and nialism.The Thefrequency frequencyof ofreminding remindingagain againand and again again about about Soviet Soviet assistance, assistance, that that was was offered offered again about Soviet assistance, that was offered again about Soviet assistance, that was offered

That That conference saw several agreements That conference saw several agreements That conference conference saw saw several several agreements agreements signed signed including between the African signed including between the African signed including including between between the the African African Export-Import Export-Import Bank (Afreximbank) and SinaExport-Import Bank (Afreximbank) and SinaExport-ImportBank Bank(Afreximbank) (Afreximbank)and andSinaSinara-Transport ra-Transport Machines JSC (STM), Transmash ra-Transport Machines JSC (STM), Transmash ra-TransportMachines MachinesJSC JSC(STM), (STM),Transmash Transmash Holding Holding JSC, Russian Export Center JSC, Holding JSC, Russian Export Center JSC, Holding JSC, JSC, Russian Russian Export Export Center Center JSC, JSC, Avelar Avelar Solar Technology LLC, Chelyabinsk Avelar Solar Technology LLC, Chelyabinsk Avelar Solar Solar Technology Technology LLC, LLC, Chelyabinsk Chelyabinsk

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Russia-African relations in the context of geopolitical changes

A NEW THINKING

Pipe Plant PJSC, Kolon World Investment, and Pipe Pipe Plant PJSC, Kolon World Investment, and PipePlant PlantPJSC, PJSC,Kolon KolonWorld WorldInvestment, Investment,and and Opaia SA and the Roscongress Foundation. Opaia Opaia SA and the Roscongress Foundation. OpaiaSA SAand andthe theRoscongress RoscongressFoundation. Foundation. As far back in 2017, the Russian Export Center As As far back in 2017, the Russian Export Center Asfar farback backin in2017, 2017,the theRussian RussianExport ExportCenter Center became Afreximbank's third largest non-Afribecame became Afreximbank's third largest non-AfribecameAfreximbank's Afreximbank'sthird thirdlargest largestnon-Afrinon-African shareholding financial organization can can shareholding financial organization can shareholding shareholding financial financial organization organization shareholder, and expected to contribute to shareholder, shareholder, and expected to contribute to shareholder,and andexpected expectedto tocontribute contributeto to the acceleration of investment, trade, and the the acceleration of investment, trade, and theacceleration accelerationof ofinvestment, investment,trade, trade,and and economic relations between Russia and Afrieconomic economic relations between Russia and Afrieconomicrelations relationsbetween betweenRussia Russiaand andAfriAfrican countries. can can countries. cancountries. countries. Interesting to note here that Russian business Interesting Interesting to note here that Russian business Interestingto tonote notehere herethat thatRussian Russianbusiness business community hardly pays attention to the community community hardly pays attention to the community hardly hardly pays pays attention attention to to the the significance of African Continental Free Trade significance significance of African Continental Free Trade significanceof ofAfrican AfricanContinental ContinentalFree FreeTrade Trade Area (AfCFTA) which provides unique and Area Area (AfCFTA) which provides unique and Area(AfCFTA) (AfCFTA)which whichprovides providesaaaaunique uniqueand and valuable platform for businesses to access an valuable valuable platform for businesses to access an valuableplatform platformfor forbusinesses businessesto toaccess accessan an integrated African market of over 1.3 billion integrated integrated African market of over 1.3 billion integratedAfrican Africanmarket marketof ofover over1.3 1.3billion billion people. The growing middle class, among people. people. The growing middle class, among people.The Thegrowing growingmiddle middleclass, class,among among other factors, constitutes huge market other other factors, constitutes huge market other factors, factors, constitutes constitutes aaaa huge huge market market potential in Africa. The African continent potential potential in Africa. The African continent potential in in Africa. Africa. The The African African continent continent currently has enormous potential as market, currently currently has enormous potential as market, currentlyhas hasenormous enormouspotential potentialas asaaaamarket, market, and some experts say the last business and and some experts say isisthe the last business andsome someexperts expertssay sayititititisis thelast lastbusiness business frontier. frontier. frontier. frontier. Many African countries are enacting economMany Many African countries are enacting economManyAfrican Africancountries countriesare areenacting enactingeconomeconomreforms, demand growing for high-qualiicic icicreforms, reforms, demand isisgrowing growing for high-qualireforms,demand demandisis growingfor forhigh-qualihigh-quality, competitive products. Russian businesses ty, ty, competitive products. Russian businesses ty,competitive competitiveproducts. products.Russian Russianbusinesses businesses are interested in this niche, but Russians are are are interested in this niche, but Russians are areinterested interestedin inthis thisniche, niche,but butRussians Russiansare are extremely slow. The snail-pace approach extremely extremely slow. The snail-pace approach extremely slow. slow. The The snail-pace snail-pace approach approach reflects their inability to determine financial reflects reflects their inability to determine financial reflectstheir theirinability inabilityto todetermine determinefinancial financial instruments for supporting trade with and instruments instruments for supporting trade with and instrumentsfor forsupporting supportingtrade tradewith withand and investment in Africa. investment investment in Africa. investmentin inAfrica. Africa. Accentuating the importance of multilateral Accentuating Accentuating the importance of multilateral Accentuatingthe theimportance importanceof ofmultilateral multilateral cooperation between Russia and Africa, Advicooperation cooperation between Russia and Africa, Advicooperationbetween betweenRussia Russiaand andAfrica, Africa,AdviAdvisor to the President of the Russian Federasor sor to the President of the Russian Federasorto tothe thePresident Presidentof ofthe theRussian RussianFederaFederation, Anton Kobyakov, said: "The current sitution, tion, Anton Kobyakov, said: "The current sitution,Anton AntonKobyakov, Kobyakov,said: said:"The "Thecurrent currentsitusituation in the world such that we are witnessation ation in the world isissuch such that we are witnessationin inthe theworld worldisis suchthat thatwe weare arewitnesswitnesses to the formation of new centers of ecoes es to the formation of new centers of ecoesto tothe theformation formationof ofnew newcenters centersof ofecoeconomic growth in Africa. Competition for Afrinomic nomic growth in Africa. Competition for Afrinomicgrowth growthin inAfrica. Africa.Competition Competitionfor forAfriAfrican markets growing accordingly. There can can markets isisgrowing growing accordingly. There isis canmarkets marketsisis growingaccordingly. accordingly.There Thereisis no doubt that Russia's non-commodity no no doubt that Russia's non-commodity no doubt doubt that that Russia's Russia's non-commodity non-commodity exporters will benefit from cooperating with exporters exporters will benefit from cooperating with exporterswill willbenefit benefitfrom fromcooperating cooperatingwith with Africa on manufacturing, technologies, Africa Africa on manufacturing, technologies, Africa on on manufacturing, manufacturing, technologies, technologies, finances, trade, and investment." finances, finances, trade, and investment." finances,trade, trade,and andinvestment." investment." Kobyakov further pointed to modern Russia, Kobyakov Kobyakov further pointed to modern Russia, Kobyakovfurther furtherpointed pointedto tomodern modernRussia, Russia, which already has experience of successful which which already has experience of successful whichalready alreadyhas hasexperience experienceof ofsuccessful successful cooperation with African countries under its cooperation cooperation with African countries under its cooperationwith withAfrican Africancountries countriesunder underits its belt, ready to make an offer to the African belt, belt, isisready ready to make an offer to the African belt,isis readyto tomake makean anoffer offerto tothe theAfrican African continent that will secure mutually beneficial continent continent that will secure mutually beneficial continentthat thatwill willsecure securemutually mutuallybeneficial beneficial

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partnership and the joint realization of decades partnership partnership and the joint realization of decades partnershipand andthe thejoint jointrealization realizationof ofdecades decades of painstaking work carried out by several genof of painstaking work carried out by several genofpainstaking painstakingwork workcarried carriedout outby byseveral severalgengenerations of Soviet and Russian people. erations erations of Soviet and Russian people. erationsof ofSoviet Sovietand andRussian Russianpeople. people. With its impressive relations, Russia has not With With its impressive relations, Russia has not Withits itsimpressive impressiverelations, relations,Russia Russiahas hasnot not pledged publicly concrete funds toward impleimplepledged pledged publicly concrete funds toward pledgedpublicly publiclyconcrete concretefunds fundstoward towardimpleimplementing its policy objectives in Africa. Morementing menting its policy objectives in Africa. Morementingits itspolicy policyobjectives objectivesin inAfrica. Africa.MoreMoreover, Russian officials have ignored the fact that over, over, Russian officials have ignored the fact that over,Russian Russianofficials officialshave haveignored ignoredthe thefact factthat that Russia's overall economic engagement largely Russia's Russia's overall economic engagement isislargely largely Russia'soverall overalleconomic economicengagement engagementisis largely staggering, various business agreements signed staggering, staggering, various business agreements signed staggering,various variousbusiness businessagreements agreementssigned signed are still not fullfilled with many African counare are still not fullfilled with many African counarestill stillnot notfullfilled fullfilledwith withmany manyAfrican Africancouncountries. tries. tries. tries. Agreements and business negotiations resulted Agreements Agreements and business negotiations resulted Agreementsand andbusiness businessnegotiations negotiationsresulted resulted into 92 agreements, contracts and memoranda into into 92 92 agreements, agreements, contracts contracts and and memoranda memoranda into 92 agreements, contracts and memoranda of understanding. Summit documents say of of understanding. Summit documents say ofunderstanding. understanding.Summit Summitdocuments documentssay sayaaaa total of RUB 1.004 trillion ((US$12.5 bn) worth of total total of of RUB RUB 1.004 1.004 trillion trillion ((US$12.5 ((US$12.5 bn) bn) worth worth of total of RUB 1.004 trillion ((US$12.5 bn) worthof of agreements were signed at that highly-praised agreements agreements were signed at that highly-praised agreementswere weresigned signedat atthat thathighly-praised highly-praised historic summit in October 2019. historic historic summit in October 2019. historicsummit summitin inOctober October2019. 2019. Large Russian companies have been unsuccessLarge Large Russian companies have been unsuccessLargeRussian Russiancompanies companieshave havebeen beenunsuccessunsuccessful with their projects, negatively reflecting the ful ful with their projects, negatively reflecting the fulwith withtheir theirprojects, projects,negatively negativelyreflecting reflectingthe the real motives for bilateral economic cooperation. real real motives motives for for bilateral bilateral economic economic cooperation. cooperation. real motives for bilateral economic cooperation. There are several examples such as Rosatom in There There are several examples such as Rosatom in Thereare areseveral severalexamples examplessuch suchas asRosatom Rosatomin in South Africa, Norrick Nickel in Botswana, AjeoSouth South Africa, Africa, Norrick Norrick Nickel Nickel in in Botswana, Botswana, AjeoAjeoSouth Africa, Norrick Nickel in Botswana, Ajeokuta Steel Plant in Nigeria, Mining projects in kuta kuta Steel Plant in Nigeria, Mining projects in kutaSteel SteelPlant Plantin inNigeria, Nigeria,Mining Miningprojects projectsin in Uganda and Zimbabwe, Lukoil in Cameroon, Uganda Uganda and and Zimbabwe, Zimbabwe, Lukoil Lukoil in in Cameroon, Cameroon, Uganda and Zimbabwe, Lukoil in Cameroon, Nigeria and Sierra Leone. Currently, Russia Nigeria Nigeria and Sierra Leone. Currently, Russia isis Nigeriaand andSierra SierraLeone. Leone.Currently, Currently,Russia Russiaisis invisible in spheres providing infrastructures in invisible invisible in in spheres spheres providing providing infrastructures infrastructures in in invisible in spheres providing infrastructures in Africa. Africa. Africa. Africa. Undoubtedly, number of Russian companies Undoubtedly, Undoubtedly, number of Russian companies Undoubtedly,aaaanumber numberof ofRussian Russiancompanies companies have largely underperformed in Africa, experts have have largely largely underperformed underperformed in in Africa, Africa, experts have largely underperformed in Africa,experts experts described was primarily due to multiple reasons. described described was primarily due to multiple reasons. describedwas wasprimarily primarilydue dueto tomultiple multiplereasons. reasons. Most often, Russian investors strike important Most Most often, Russian investors strike important Mostoften, often,Russian Russianinvestors investorsstrike strikeimportant important investment niches that still require long-term investment investment niches that still require long-term investmentniches nichesthat thatstill stillrequire requirelong-term long-term strategies and adequate country study. Grapstrategies strategies and adequate country study. Grapstrategiesand andadequate adequatecountry countrystudy. study.GrapGrappling with reality, there are many investment pling pling with reality, there are many investment plingwith withreality, reality,there thereare aremany manyinvestment investment challenges including official bureaucracy in challenges challenges including official bureaucracy in challenges including including official official bureaucracy bureaucracy in in Africa. Africa. Africa. Africa. In order to ensure business safety and conseIn In order to ensure business safety and conseInorder orderto toensure ensurebusiness businesssafety safetyand andconseconsequently taking steps to realize the primary quently quently taking taking steps steps to to realize realize the the primary primary quently taking steps to realize the primary goals, necessary to attain some level of goals, goals, isisnecessary necessary to attain some level of goals,ititititisis necessaryto toattain attainsome somelevel levelof of understanding the priorities of the country, understanding understanding the the priorities priorities of of the the country, country, understanding the priorities of the country, investment legislations, comply with terms of investment investment legislations, comply with terms of investmentlegislations, legislations,comply complywith withterms termsof of agreement and a careful study of policy changagreement agreement and and a a careful careful study study of of policy policy changchangagreement and a careful study of policy changes, particularly when there sudden change in es, es, particularly when there isisaaaasudden sudden change in es,particularly particularlywhen whenthere thereisis suddenchange changein in government. government. government. government. What abundantly clear how to stimulate What What isisabundantly abundantly clear isishow how to stimulate Whatisis abundantlyclear clearisis howto tostimulate stimulate African governments into exploring investment African African governments into exploring investment Africangovernments governmentsinto intoexploring exploringinvestment investment Russia-African relations in the context of geopolitical changes

INVESTMENT TIMES

opportunitiesin inRussia Russiaand andalso alsoRussian Russianinvesinvesopportunities in Russia and also Russian invesopportunities opportunities in Russia and also Russian investors into into Africa Africa within within some some framework framework of of tors into Africa within some framework of tors tors into Africa within some framework of mutualcooperation. cooperation.In Inorder orderto tofacilitate facilitateboth both mutual cooperation. In order to facilitate both mutual mutual cooperation. In order to facilitate both Russianand andAfrican Africaneconomic economicoperators operatorsto to to Russian and African economic operators to Russian Russian and African economic operators have access access to to each each other's other's markets markets and and have access to each other's markets and have have access to each other's markets and encourage their their participation participation in in large-scale large-scale encourage their participation in large-scale encourage encourage their participation in large-scale infrastructureprojects projectsmust mustnecessarily necessarilyinvolve involve infrastructure projects must necessarily involve infrastructure infrastructure projects must necessarily involve taking progressive progressive practical practical steps steps toward toward taking progressive practical steps toward taking taking progressive practical steps toward resolvingexisting existingobstacles. obstacles. resolving existing obstacles. resolving resolving existing obstacles. Thatsaid, said,preparations preparationsfor forthe thesecond secondRusRusThat said, preparations for the second RusThat That said, preparations for the second Russia-Africasummit summitare arecurrently currentlyunderway. underway."The "The sia-Africa summit are currently underway. "The sia-Africa sia-Africa summit are currently underway. "The Russianside sideaims aimsto tocontinue continuepreparing preparingthe the Russian side aims to continue preparing the Russian Russian side aims to continue preparing the second,as aswell wellas assubsequent subsequentRussian-Africa Russian-Africa second, as well as subsequent Russian-Africa second, second, as well as subsequent Russian-Africa summitsand andaims aimsto tomake makethem themas asefficient efficientas as summits and aims to make them as efficient as summits summits and aims to make them as efficient as possible.The TheRussian RussianMinistry Ministryof ofForeign ForeignAffairs Affairs possible. The Russian Ministry of Foreign Affairs possible. possible. The Russian Ministry of Foreign Affairs andother otherministries ministriesare aretaking takingsteps stepsto tobuild buildaaaa and other ministries are taking steps to build and and other ministries are taking steps to build full and and mutually mutually beneficial beneficial cooperation cooperation full and mutually beneficial cooperation full full and mutually beneficial cooperation between Russia Russia and and the the African African countries, countries, between Russia and the African countries, between between Russia and the African countries, includingthe theformation formationof ofaaaareliable reliablesocial socialand and including the formation of reliable social and including including the formation of reliable social and economicinfrastructure, infrastructure,food foodand andenergy energysecusecueconomic infrastructure, food and energy secueconomic economic infrastructure, food and energy securityon onthe thecontinent," continent,"said saidOleg OlegOzerov, Ozerov,AmAmrity on the continent," said Oleg Ozerov, Amrity rity on the continent," said Oleg Ozerov, Ambassador-at-Largeand andHead Headof ofthe theSecretariat Secretariat bassador-at-Large and Head of the Secretariat bassador-at-Large bassador-at-Large and Head of the Secretariat ofthe theRussia-Africa Russia-AfricaPartnership PartnershipForum. Forum. of the Russia-Africa Partnership Forum. of of the Russia-Africa Partnership Forum. Worthsaying sayinghere herethat thatAfrican Africanleaders leadersare arewaitwaitWorth saying here that African leaders are waitWorth Worth saying here that African leaders are waitingto tocut cutwhite whiteribbons ribbonsmarking markingthe thesuccessful successful ing to cut white ribbons marking the successful ing ing to cut white ribbons marking the successful completion of of Russian-managed Russian-managed something. something. completion of Russian-managed something. completion completion of Russian-managed something. Reallyititititisis timeto toshift shiftfrom fromrhetoric rhetoricand andmove move Really time to shift from rhetoric and move Really Really isistime time to shift from rhetoric and move ontowards towardsimplementing implementingthe thepackage packageof ofbilatbilaton towards implementing the package of bilaton on towards implementing the package of bilateral agreements agreements especially especially those those involving involving eral agreements especially those involving eral eral agreements especially those involving infrastructureinvestments, investments,determine determinefinancing financing infrastructure investments, determine financing infrastructure infrastructure investments, determine financing concreteprojects projectsand anddeliver deliveron ondecade-old decade-old concrete projects and deliver on decade-old concrete concrete projects and deliver on decade-old pledgesto tothe thepeople peopleof ofAfrica. Africa. pledges to the people of Africa. pledges pledges to the people of Africa. WhileRussian Russianand andAfrican Africanleaders leadersstrike striketheir their While Russian and African leaders strike their While While Russian and African leaders strike their common positions positions on on the the global global platform, platform, common positions on the global platform, common common positions on the global platform, thereisis alsothe theneed needto torecognize recognizeand andappreciapprecithere also the need to recognize and apprecithere there isisalso also the need to recognize and appreciatethe thewelfare welfareof of1.3 1.3billion billionpopulation, population,majorimajoriate the welfare of 1.3 billion population, majoriate ate the welfare of 1.3 billion population, majorityimpoverished, impoverished,in inAfrica. Africa.Significant Significantto tosugsugty impoverished, in Africa. Significant to sugty ty impoverished, in Africa. Significant to suggestthat thatwith withnew newhorizons horizonsof ofthe thepolycentric polycentric gest that with new horizons of the polycentric gest gest that with new horizons of the polycentric worldorder orderemerging emergingand andsteadily steadilyunfolding, unfolding, world order emerging and steadily unfolding, world world order emerging and steadily unfolding, activeengagement engagementof ofthe theAfrican Africanyouth, youth,civil civil active engagement of the African youth, civil active active engagement of the African youth, civil society leaders, leaders, women women entrepreneurs entrepreneurs and and society leaders, women entrepreneurs and society society leaders, women entrepreneurs and activechangemakers changemakersin inthe themiddle-class middle-classinto into active changemakers in the middle-class into active active changemakers in the middle-class into policyefforts effortsbecomes becomesdefinitely definitelynecessary. necessary. policy efforts becomes definitely necessary. policy policy efforts becomes definitely necessary. Withthe theyouth's youth's youth'seducation, education, education,some some someexperts experts expertsare are are With the youth's education, some experts are With With the still stillcritical. critical. critical.Gordey Gordey GordeyYastrebov, Yastrebov, Yastrebov,aaaaPostdoctoral Postdoctoral Postdoctoral still critical. Gordey Yastrebov, Postdoctoral still Researcher Researcherand and andLecturer Lecturer Lecturerat at atthe the theInstitute Institute Institutefor for for Researcher and Lecturer at the Institute for Researcher Sociology Sociologyand and andSocial Social SocialPsychology Psychology Psychologyat at atthe the theUniverUniverUniverSociology and Social Psychology at the UniverSociology sity sityof of ofCologne Cologne Cologne(Germany), (Germany), (Germany),argues argues arguesin in inan an anemail email email sity of Cologne (Germany), argues in an email sity 54 investmenttimesonline.com

interview interviewdiscussion discussion discussionthat that that"education "education "educationcan can canbe be be interview discussion that "education can be interview tool toolfor for forgeopolitical geopolitical geopoliticalinfluence influence influencein in ingeneral, general, general, tool for geopolitical influence in general, aaaatool and andfor for forchanging changing changingperceptions perceptions perceptionsspecifically, specifically, specifically, and for changing perceptions specifically, and and andRussia Russia Russia(just (just (justlike like likeany any anyother other othercountry) country) country)could could could and Russia (just like any other country) could and use use itititit for for for that that that same same same purpose. purpose. purpose. However, However, However, use for that same purpose. However, use Russia Russiaisn't isn't isn'tdoing doing doinganything anything anythingsubstantial substantial substantialon on on Russia isn't doing anything substantial on Russia this thisfront, front, front,at at atleast least leastthere there thereisis isisno no noconsistent consistent consistent this front, at least there no consistent this effort effortwith with withobvious obvious obviousoutcomes outcomes outcomesthat that thatwould would would effort with obvious outcomes that would effort make makeme me methink think thinkso. so. so.There There Thereare are areno no nolarge-scale large-scale large-scale make me think so. There are no large-scale make investment investmentprograms programs programsin in ineducation education educationfocusing focusing focusing investment programs in education focusing investment on onthis." this." this." on this." on He He explains explains explains that that that Russian Russian Russian education education education can can can He explains that Russian education can He become becomeappealing appealing appealingthese these thesedays, days, days,but but butgiven given giventhat that that become appealing these days, but given that become Russia Russiacan can canno no nolonger longer longerboast boast boastany any anysignificant significant significant Russia can no longer boast any significant Russia scientific scientificand and andtechnological technological technologicalachievements. achievements. achievements. scientific and technological achievements. scientific Western Westerneducational educational educationaland and andscientific scientific scientificparadigm paradigm paradigm Western educational and scientific paradigm Western embraces embracescooperation cooperation cooperationand and andcritical critical criticalindepenindepenindepenembraces cooperation and critical indepenembraces dent dentthinking, thinking, thinking,whereas whereas whereasthis this thisisis isisnot not notthe the thecase case case dent thinking, whereas this not the case dent with withthe the theRussian Russian Russianparadigm, paradigm, paradigm,which which whichisis isisbecombecombecomwith the Russian paradigm, which becomwith ing ing more more more isolationist isolationist isolationist and and and authoritarian. authoritarian. authoritarian. ing more isolationist and authoritarian. ing Obviously Obviouslyby by bynow, now, now,Africa Africa Africashould should shouldlook look lookup up upto to to Obviously by now, Africa should look up to Obviously more moresuccessful successful successfulexamples examples exampleselsewhere, elsewhere, elsewhere,perperpermore successful examples elsewhere, permore haps hapsin in inthe the theUnited United UnitedStates States Statesand and andEurope. Europe. Europe. haps in the United States and Europe. haps As Asthe the theofficial official officialRussia's Russia's Russia'sMinistry Ministry Ministryof of ofForeign Foreign Foreign As the official Russia's Ministry of Foreign As indicated----ititititisis evidentthat that Affairs Affairswebsite website websiteindicated Affairs website indicated evident that indicated isisevident evident that Affairs thesignificant significantpotential potentialof ofthe theeconomic economic the significant potential of the economic the the significant potential of the economic cooperationisis farfrom frombeing beingexhausted, exhausted, cooperation far from being exhausted, cooperation cooperation isisfar far from being exhausted, muchremains remainsto tobe bedone donein increating creatingcondicondimuch remains to be done in creating condimuch much remains to be done in creating conditions necessary necessary for for interaction interaction between between tions necessary for interaction between tions tions necessary for interaction between Russiaand andAfrica. Africa.At Ataaaameeting meetingof ofthe theMinisMinisRussia and Africa. At meeting of the MinisRussia Russia and Africa. At meeting of the Ministry'sCollegium, Collegium,Lavrov Lavrovunreservedly unreservedlysugsugtry's Collegium, Lavrov unreservedly sugtry's try's Collegium, Lavrov unreservedly suggestedtaking takingaaaachapter chapteron onthe theapproach approachand and gested taking chapter on the approach and gested gested taking chapter on the approach and methodsadopted adoptedby byChina Chinain inAfrica, Africa,and and methods adopted by China in Africa, and methods methods adopted by China in Africa, and thatwas wasback backin in2019. 2019. that was back in 2019. that that was back in 2019. Nowat atthe thecrossroad, crossroad,ititititcould couldbe bemeadering meadering Now at the crossroad, could be meadering Now Now at the crossroad, could be meadering andlonger longerthan thanexpected expectedto tomake makethe themark. mark. and longer than expected to make the mark. and and longer than expected to make the mark. Russia'sreturn returnjourney journeycould couldtake takeanother another Russia's return journey could take another Russia's Russia's return journey could take another generationto toreach reachdestination destinationAfrica. Africa.With With generation to reach destination Africa. With generation generation to reach destination Africa. With the current current changing changing geopolitical geopolitical world, world, the current changing geopolitical world, the the current changing geopolitical world, Russiahas hasbeen beenstripped strippedof ofas asaaaamember memberof of Russia has been stripped of as member of Russia Russia has been stripped of as member of manyinternational internationalorganizations. organizations.As Asaaaadirect direct many international organizations. As direct many many international organizations. As direct resultof ofRussia's Russia's"special "specialmilitary militaryoperation" operation" result of Russia's "special military operation" result result of Russia's "special military operation" aimsat at"demilitarization "demilitarizationand anddenazification" denazification" aims at "demilitarization and denazification" aims aims at "demilitarization and denazification" sincelate lateFebruary, February,Russia Russiahas hascome comeunder underaaaa since late February, Russia has come under since since late February, Russia has come under raftof ofsanctions sanctionsimposed imposedby bythe theUnited United raft of sanctions imposed by the United raft raft of sanctions imposed by the United Statesand andCanada, Canada,European EuropeanUnion, Union,Japan, Japan, States and Canada, European Union, Japan, States States and Canada, European Union, Japan, Australia,New NewZealand Zealandand andaaaahost hostof ofother other Australia, New Zealand and host of other Australia, Australia, New Zealand and host of other countries. countries. countries. countries. Russia-African relations in the context of geopolitical changes

Tourism

Tourism INVESTMENT TIMES

Sustainable tourism through Ghana Project

SSome ome major major challenge challenge the the “Green “Green Ghana Ghana

Project” Project”faced facedlast lastyear yearand andmay maystill stillface facethis this year year are are the the sustainability, sustainability, the the protection protection and and watering wateringof ofthe theplanted plantedtrees. trees.Yes Yesindeed indeedthis this exercise exerciseisisdone doneininJune Junewith withthe theexpectations expectations of of high high rains. rains. This This year year the the rains rains began began early early and andwe wemissed missedaalot lotof ofwater waterhad hadwe webegan beganthe the planting planting at at the the beginning beginning of of the the raining raining season. season.In Inthese thesedays daysof ofclimate climatechange changeunceruncertainties, tainties,we weneed needto toreconsider reconsiderholding holdingaafixed fixed date dateininJune Junerather ratherthan thanmoving movingalong alongwith withthe the early earlyrains. rains.Last Lastyear, year,following followingthe thetree treeplantplanting, ing, on on one one of of my my usual usual visit visit to to the the places places where where we we planted planted the the trees trees i.e. i.e. along along the the median medianof ofaahighway highwayto tomy myamazement, amazement,cows cows and and sheep sheep were were busily busily grazing grazing on on the the plants. plants. During Duringthis thisyear’s year’slaunch, launch,The ThePresident Presidentof ofthe the Republic Republicmentioned mentionedthat thathe hewas wastold toldthe thetrees trees

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By Philip Gebu

are are doing doing well. well. There There are are however however some some places places where where the the trees trees didn’t didn’t do do as as well well as as expected expected especially especially where where we we did did our our tree tree planting planting last last year. year. These These stray stray animals animals keep keep loitering loitering around around and and it’s it’s sad sad irrespective irrespective of of the themany manycomplains complainsI Imade madeto tothe theAssembly, Assembly, nothing nothinghas hasbeen beendone doneto toarrest arrestthe theowners owners of ofthese theseanimals. animals. Following Following the the tree tree planting planting exercise, exercise, I I met met assembly and and I I with with officials officials of of aa municipal municipal assembly wouldn’t wouldn’twant wantto tomention mentionthe thename. name.I Iasked asked an anofficial officialof ofthe theassembly assemblyto toappoint appointone oneof of their their worker worker to to be be doing doing the the watering watering and and I I volunteered volunteeredto topay paythe theperson personevery everymonth. month. Unfortunately, Unfortunately,ititnever neversaw sawthe thelight lightof ofday. day.I I followed followed up up yet yet nothing nothing happened. happened. My My wife wife and and I I then then volunteered volunteered to to water water them them on on

Sustainable tourism through Ghana Project

A NEW THINKING

weekends. weekends. That’s That’s the the best best we we could could do. do. Seeing Seeing the the stray stray animals animals on on aa regular regular bases bases killed killed our our desire desire to to keep keep going going forward. forward. Passersby Passersby who who saw saw us us watering watering the the plants plants told told us us they they know know where where the the owners owners of of these these animals animals live. live. I I hope hope it’s it’sthis thisyear yearthey theymay maybe beapprehended. apprehended.The Thelack lack of of constant constant watering watering also also affected affected some some of of the the trees trees who who eventually eventually died died from from the the sun sun expoexposure. sure. Something Something needs needs to to change change this this year year to to unable unableus usmeet meetthe the20 20million milliontrees treestarget targetififnot not ititmay maybe befar farfrom frombeing beingachieved. achieved.The Thelaw lawmust must be bemade madeto towork workthis thisyear. year.ItItwill willaagreat greatdisserdisservice viceto tothe thepeople peoplewho whospend spendtheir theirtime timeplanting planting the the trees trees like like the the People People With With Disability Disability and and allow success of of this this exercise exercise allow them them to to die. die. The The success will willbe beof ofgreat greatbenefit benefitto tothe theenvironment environmentand and generations generationsunborn. unborn. As Aswe weimplement implementthis thisyear’s year’sprogram, program,there thereare are some somebest bestpractices practicesas asoutlined outlinedby bythe theUniversity University of ofMinnesota Minnesotawhich whichcould couldbe beof ofhelp helpto toall allof ofus. us. When Whento towater water Newly Newly planted planted trees trees or or shrubs shrubs require require more more frequent frequent watering watering than than established established trees trees and and shrubs. shrubs.They Theyshould shouldbe bewatered wateredat atplanting plantingtime time and andat atthese theseintervals: intervals: •1-2 •1-2weeks weeksafter afterplanting, planting,water waterdaily. daily. •3-12 •3-12 weeks weeks after after planting, planting, water water every every 22 to to 33 days. days. •After •After 12 12 weeks, weeks, water water weekly weekly until until roots roots are are established. established. How How long long does does itit take take for for tree tree and and shrub shrub roots rootsto toestablish? establish? Newly Newly planted planted shrubs shrubs are are considered considered estabestablished lishedwhen whentheir theirroot rootspread spreadequals equalsthe thespread spread of ofthe theabove-ground above-groundcanopy. canopy.In InMinnesota, Minnesota,this this will willtake takeone oneto totwo twoyears. years. Other OtherFactors Factorsaffecting affectingaayoung youngtree’s tree’s water waterneeds needs Beyond Beyond the the rules rules of of thumb thumb listed listed above, above, the the water waterneeds needsof ofyour youryoung youngtree treeare areaffected affectedby by many manyfactors, factors,including: including: Tree TreeSpecies Speciesand andSize Size It’s It’saagood goodidea ideato toknow knowthe thegeneral generalwater waterneeds needs of ofthe thetrees treesyou youchoose choosebefore beforeplanting plantingthem. them.

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Different Different species species of of trees trees have have different different transpiration transpiration rates, rates, meaning meaning they they need need different different amounts amounts of of water water and and take take up up water waterby bytheir theirroots rootsat atdifferent differentrates. rates.Trees Trees that that have have evolved evolved to to withstand withstand windy, windy, coastal coastal conditions conditions are are very very different different from from trees trees that that evolved evolved inin humid, humid, rainforest, rainforest, or or subtropical subtropicalconditions. conditions. Rootball Rootballsize sizeat atplanting plantingdetermines determineswater water use. use.IfIfyou youare areplanting plantingmore moremature maturetrees trees with with larger larger rootballs, rootballs, remember remember that that inin addition addition to to their their larger larger rootballs rootballs they they will will most most likely likely have have larger larger crowns crowns with with more more branches branchesand andleaves leavesto tosupport. support.The Thestress stress of of transplanting transplanting can can cause cause trees trees to to drop drop some some or or all all of of their their leaves, leaves, so so be be sure sure to to provide provide enough enough water water to to minimize minimize transtransplanting plantingstress. stress. Location Location IsIsthe thetree treeininfull fullsun sunor orininaawindy windylocation? location? IsIs itit inin aa low low spot spot or or where where there’s there’s shade? shade? Are Areyou youplanting plantingyour yournew newtree treeon onaaslope? slope? The The specifics specifics of of aa tree’s tree’s surroundings surroundings are are important importantto toits itswater wateruptake uptakeneeds. needs. AA low low spot spot inin part part shade shade will will most most likely likely lose losewater watermore moreslowly slowlythan thanaaspot spotthat’s that’sinin full fullsun, sun,because becauseof ofslower slowerevaporation. evaporation. The The top top of of aa slope slope will will lose lose water water most most quickly quicklybecause becauseof ofgravity gravitypulling pullingthe thewater water down downthe theslope slopeand andthrough throughthe thesoil. soil. AAwindy windyspot spotwill willincrease increasethe thetranspiration transpiration rate rate of of aa tree, tree, as as the the water water that’s that’s released released by by aa tree’s tree’s stomata stomata (openings (openings on on the the underside undersideof ofleaves leavesthat thatrelease releasewater) water)will will evaporate evaporatemore morequickly quicklywhen whenwind windblows blowsitit away. This This means means the the tree tree needs needs more more away. water, water,faster, faster,to tobe betransferred transferredfrom fromits itsroot root system systemto toits itscrown crownto tokeep keepits itstranspiration transpiration balanced. balanced. Competition Competition Are Are there there many many other other trees trees and and shrubs shrubs around aroundyour yournew newtree? tree?How Howabout aboutlawn lawnor or

Sustainable tourism through Ghana Project

INVESTMENT TIMES

flower flowerbeds? beds?

upall allthe themoisture moisturethey theyneed. need. up

Competition Competition by by your your plants plants for for water water isis real! real! You’ll You’ll want want to to supply supply enough enough water water to to keep keepeveryone’s everyone’sroots rootshealthy. healthy.

Claysoil soilcan canbe beslow slowto toabsorb absorbwater waterand and Clay can hold hold water water for for long long periods periods of of time. time. can Claysoil soilcan canbecome becomewaterlogged, waterlogged,essenessenClay tially“drowning” “drowning”your yourtree. tree. tially

Temperature Temperature Outdoor Outdoortemperatures temperaturesand andhours hoursof ofsunlight sunlight are aredirectly directlyrelated relatedto tohow howmuch muchwater wateraatree tree of ofany anysize sizeneeds. needs.

Loam soil soil has has the the best best water-holding water-holding Loam capacity for for most most landscape landscape plants plants and and isis capacity idealfor formost mosttrees. trees. ideal

Different species of trees have different transpiration rates, meaning they need different amounts of water and take up water by their roots at different rates. Trees that have evolved to withstand windy, coastal conditions are very different from trees that evolved in humid, rainforest, or subtropical conditions

hehotter hotterititis, is,the themore morewater wateraatree’s tree’sroots roots he willtake takeup. up. will Thelonger longerthe thehours hoursof ofsunlight, sunlight,the themore more The time that that tree tree will will spend spend taking taking up up water water time eachday. day. each SoilTexture Texture Soil Thekind kindof ofsoil soilyour yourtree treeisisplanted plantedininisisalso also The important.Soil Soilhas hasaanatural naturaltexture, texture,defined defined important. by the the percentages percentages of of its its components, components, and and by that texture texture determines determines how how fast fast water water will will that runthrough throughit.it. run Sandy soil soil drains drains water water very very fast, fast, somesomeSandy timestoo toofast fastfor fortree treeroots rootsto tobe beable ableto totake take times

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Urban Urbanfill fillsoil soilmay maybe bemade madeup upof ofany anyor or everything, everything, so so its its water-holding water-holding capacity capacity isn’t isn’tknown knownwithout withoutaasoil soilanalysis. analysis. Soil SoilDepth Depth To Toadd addto tothe thecomplexity complexityof ofwater, water,soil, soil,and and trees, trees,your yoursoil’s soil’sdepth depthisisalso alsoimportant importantto to how how much much water water you’ll you’ll need need for for your your young youngtree. tree.Shallow Shallowsoil soiljust justcan’t can’thold holdthe the volume volumeof ofwater waterthat thatdeep deepsoil soilcan canso soyour your young youngtree’s tree’sroots rootswill willneed needmore morefrequent frequent watering. watering. Testing Testingyour yoursoil soilwill willalso alsotell tellyou youabout aboutits its nutrient nutrientlevels levels and andif,if,or orhow howmuch, much,you’ll you’ll need needto toamend amendyour yoursoil soilto toensure ensurehealthy healthy tree treegrowth. growth. From From the the above above information, information, there there isn’t isn’t one one simple simple answer answer to to the the question question “How “How much much water water should should II give give my my newnewly-planted ly-planted tree?” tree?” When When you you water water and and how how much much you you provide provide will will vary vary dependdepending ingon onaawide widevariety varietyof offactors. factors. However, However,the thegeneral generaltree treewatering wateringguideguidelines linesare: are: 1.1. Water Waterthe therootball rootballbefore beforeplanting planting 2.2. Give Give22to to33gallons gallonsof ofwater waterper perinch inch of oftrunk trunkdiameter diameterright rightafter afterplanting planting 3.3. Provide Provide 11 ½ ½ to to 22 inches inches of of water water each eachweek weekthroughout throughoutthe thesummer summerand andfall fall until untiltemperatures temperaturescool cool How How much much to to water water newly newly planted planted trees trees based basedon onsize sizeof oftrunk trunk Caliper Caliperof oftree treetrunk trunkRoot Root establishment establishment time time Gallons Gallonsof ofwater waterat ateach eachirrigation irrigation 11inch 1-1.5 inch1.5 1.5years years 1-1.5gallons gallons 22inches 33years 2-3 inches years 2-3gallons gallons

Sustainable tourism through Ghana Project

A NEW THINKING

Tackling long-term unemployment

33inches inches 44inches inches 55inches inches 66inches inches

4.5 4.5years years 66years years 7.5 7.5years years 99years years

3-4.5 3-4.5gallons gallons 4-6 4-6gallons gallons 5-7.5 5-7.5gallons gallons 6-9 6-9gallons gallons

How Howmuch muchto towater water •• When When watering watering newly newly planted planted trees, trees, apply apply1-1.5 1-1.5gallons gallonsper perinch inchof ofstem stemcaliper caliper at ateach eachwatering watering(see (seetable). table). •• When When watering watering newly newly planted planted shrubs, shrubs, apply applyaavolume volumeof ofwater waterthat thatisis1/4 1/4--1/3 1/3of of the thevolume volumeof ofthe thecontainer containerthat thatthe theshrub shrub was waspurchased purchasedin. in. •• As As roots roots grow grow and and spread, spread, irrigation irrigation volume volumewill willneed needto tobe beincreased. increased. Where Whereto towater water ••Apply Applywater waterdirectly directlyover overthe theroot rootball. ball. •• Be Be sure sure to to keep keep the the backfill backfill soil soil inin the the planting planting hole hole moist. moist. This This encourages encourages the the roots roots to to expand expand beyond beyond the the root root ball ball into into the thebackfill backfillsoil. soil. •• Tree Tree roots roots grow grow approximately approximately 18 18 inches inches per per year year inin Minnesota, Minnesota, so so expand expand the the area area being beingwatered wateredover overtime. time. •Create •Createaawater waterreservoir reservoirby bymaking makingaacircucircular lar mound mound of of earth earth 33 to to 44 inches inches high high around around the the plant plant at at the the edge edge of of the the root root ball. ball. ••Use Useaaslow slowtrickle trickleof ofwater waterto tofill fillthe thereserreservoir voir to to allow allow water water to to slowly slowly infiltrate infiltrate into into and andaround aroundthe theroot rootball. ball. ••Treegator® Treegator®bags bagscan canalso alsobe beused usedto toproprovide vide aa slow slow delivery delivery of of water water over over the the root root balls ballsof ofestablishing establishingtrees treesand andshrubs. shrubs. Philip PhilipGebu GebuisisaaTourism TourismLecturer. Lecturer.He Heisisthe theC.E.O C.E.Oof of FoReal FoRealDestinations DestinationsLtd, Ltd,aaTourism TourismDestinations Destinations Management Managementand andMarketing MarketingCompany Companybased basedinin Ghana Ghanaand andwith withpartners partnersininmany manyother othercountries. countries. Please Pleasecontact contactPhilip Philipwith withyour yourcomments commentsand and suggestions. suggestions. Write Writeto toforealdestinations@gmail.com forealdestinations@gmail.com//info@foreinfo@forealdestinations.com. aldestinations.com. Visit Visitour ourwebsite websiteatatwww.forealdestinations.com www.forealdestinations.comor or call callor orWhatsApp+233(0)244295901/0264295901. WhatsApp+233(0)244295901/0264295901. Visist Visistour oursocial socialmedia mediasites sitesFacebook, Facebook,Twitter Twitterand and Instagram: Instagram:FoReal FoRealDestinations. Destinations.

59 investmenttimesonline.com

Sustainable tourism through Ghana Project

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Comment/Analysis

INVESTMENT TIMES

Tackling long-term unemployment challenges in Ghana Unemployment is an issue of critical concern to many countries. The phenomenon is both an economic and security issue due to the large number of capable young people who are without work and disposed to illegal activities.

Bloomberg reports that the unemployment rate in Ghana has almost tripled over the past decade. According to the 2021 Population and Housing Census by the Ghana Statistical Service, more than 13 percent of Ghana’s economically active population are out of work. Unemployment is an age-old problem that successive governments have tried to reduce its rate and consequential impact on the economy, but the dial has hardly shifted. From the implementation of the Ghana Worker’s Brigade, the National Youth Employment Programme (NYEP) to the Youth Employment and Development Agency (YEDA), Youth Employment Agency (YEA) and the current Nation Builders Corps (NABCO), policy interventions have been short-term in nature and unable to address the problem in a compre-

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hensive manner. Tackling the issue requires an approach that addresses the matter comprehensively. One of the arguments put forth as contributing to the unemployment situation in Ghana is the unresponsiveness of the education structure to current industry demands. The first step on this remedial journey is the provision of good quality and relevant education that do not only respond to the exigencies of today’s world, but also prepares the minds of young people for the future. Thankfully, interventions such as Free Compulsory Basic Education and now Free SHS are ensuring that our young people have access to the minimum basic education. Around the world around, the heads of some of the most successful companies - Amazon’s Jeff Bezos, Apple’s Tim Cook, Google’s Sundar Pichai, AMD’s Lisa Su, Tesla’s Elon Musk have one thing in common: They’re engineers – they have had rigorous training in mathematical and scientific approaches to solving problems and are not shy to get into

Tackling long-term unemployment challenges in Ghana

A NEW THINKING

the technical details of the product or service. From that perspective there is a strong push to rebalance our educational structure towards STEM subjects. The goal is for STEM to serve as a catalyst to enhance the abilities of countries to produce youth with strong technical and analytical capabilities that can develop home-grown technologies to would address uniquely African problems. Beyond developing a purposeful approach towards STEM education, African countries must also place emphasis on vocational learning and disabuse the minds of the youth that a university title and route are an assured path to attaining career success. Experts point to a correlation between youth experiencing vocational training and youth employment. This explains why the debate on the merits of converting Ghanaian polytechnics into technical universities continues with great intensity. It may be argued that the role and importance of Technical and Vocational Education and Training (TVET) as a means of equipping our youth with technical skills isn’t new to us. Until the conversion of eight out of the ten polytechnics into technical universities, Ghana had one polytechnic in each of the ten erstwhile regions, named after the regional capitals, such as the Accra Polytechnic in Accra, and the Ho Polytechnic in Ho. After the show of conversion was over, the number of technical universities or polytechnics has stayed flat at ten over the last two decades. Meanwhile, the number of universities increased from just three in 1990 to 70 in 2014, with many of the new institutions focusing on the

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humanities and liberal arts programs . One may ask if we can attribute the difficulty in finding competent plumbers in Ghana, to the fact that we have not witnessed a rise in the number of polytechnics or schools for higher vocational learning in the country even as liberal arts universities keep springing up? Aside providing avenues for students to complete their national service engagements, the private sector must embrace apprenticeships for young people as a more direct corporate social contribution to the society. This could be done alongside the monetary contributions that firms extend as part of their corporate social responsibilities. Government policy may also be geared towards establishing more technical schools to train JHS and SHS school leavers, and graduates with high demand technical skills sought after by industry and the society. It is only through such deliberate acts that the youth will be equipped with employable skills to match the requirements of industry, and provide a route to the job market for students not inclined to academic university courses. A look at other parts of the globe such as the UK and the US, where a National Apprenticeship Week (NAW) is observed may illustrate this point. This is a convening of business leaders, career seekers, labor, educational institutions, and other critical partners to demonstrate their support for apprenticeship. The week-long celebration also provides apprenticeship sponsors with the opportunity to showcase their programs, facilities, and apprentices in their community. Such celebrations highlight the benefits of apprenticeship in preparing a highly skilled workforce to meet the talent needs of employers across diverse industries. Experience is indeed the best teacher, so we need not be afraid of experimenting. And as a popular story told of the inventor Thomas Edison goes, while he was working on creating the light bulb in his lab in New Jersey, USA, a

Tackling long-term unemployment challenges in Ghana

INVESTMENT TIMES

visitor to the lab expressed sympathy to Edison regarding the failed experiments and the lack of results. Edison countered by saying: “I have not failed, not once. I’ve discovered ten thousand ways that don’t work.” This story illustrates why our talented youth need support to brainstorm and co-create as they embark on their entrepreneurial ventures. Solving practical problems requires funding, facilities, mentorship, and research centers to provide subject matter expertise on trends. In August 2019, Stanbic Bank Ghana launched one of its most significant Corporate Social Initiatives - the SB Incubator. This was to provide business advisory, coaching and mentorship, and market access facilitation and networking opportunities to aspiring entrepreneurs and startups in Ghana. Located at Silver Star Tower, the SBIncubator also offers world class coworking spaces. Through the bank’s Staff Volunteer Mentorship program, the bank’s staff offer their expertise and time to members of the SBIncubator Community. Although COVID impacted engagements in 2020, the bank hosted forty-seven (47) capacity building sessions that impacted 2,498 participants. We also hosted fifty-two (52) coaching and mentoring sessions, 11 of which were held physically prior to the lockdown period. This translates into 44 one-on-one sessions and 8 group coaching sessions. In total, 380 SMEs and start-ups were directly impacted through these training programs. We also established and consolidated our partnerships with 18 strategic entities to create more value for the entrepreneurs. These partners include the likes of Reset Global People, the Israeli Embassy in collaboration with Haim Gil-Ad, Ashesi Venture Incubator and the World Economic Forum Road to Davos Discourse among others. The importance of Africa’s youth to nation building cannot be overemphasized, given their numbers. In Ghana, the youth population was estimated at 10 million in 2017, making up 35% of the country’s population. As posited above, the responsibility for ensuring that they contribute effectively to nation-building is a collective one, that lies with policy makers, educa-

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tional and corporate institutions, parents, and the youth themselves. The implications for any country in not fully developing the potential of its vibrant youth population, could be dire, possibly leading to economic losses, armed conflict, social upheaval, and political instability. One of the routes for tackling this is possibly STEM education. Kojo Akoi-Larbi Manager, Communications – Stanbic Bank Ghana

Tackling long-term unemployment challenges in Ghana

INVESTMENT TIMES

Will Ghana attract two million tourists by 2024?

first opened in 1957 in commemoration of Ghana’s Independence Day. Some additions have been made to the already existing things to see. Let’s all take for hours off and visit the National Museum. That will also be our little way of supporting domestic tourism. During the launch, The President challenged the Ministry of Tourism and Creative Arts and it implementing agencies to work towards achieving 2 million international arrivals by 2024, with expected revenue of $4 billion by the year 2024. This is indeed a daunting task put upon the ministry. Less than two years to work towards doubling the numbers we enjoyed prior to COVID-19 pandemic. No matter how ambitious this target may be, I’m somehow skeptical this target may be achieved.

TTThehehePresident President Presidentofof ofthe the therepublic republic republicofof ofGhana Ghana GhanaNana Nana Nana

Addo Addo AddoDankwa Dankwa DankwaAkufo-Addo Akufo-Addo Akufo-Addohas has hasofficially officially officiallyopened opened opened the the theNational National NationalMuseum Museum MuseumGallery Gallery Gallerywhich which whichwas was wasclosed closed closed for for forrefurbishment refurbishment refurbishmentinin in2015. 2015. 2015.Prior Prior Priortoto toits its itsclosure, closure, closure,aaa Business Business Business&Financial &Financial &FinancialTimes Times Timesreportage reportage reportageinformed informed informed us us usall all allthat that thatboth both bothlocal local localand and andforeign foreign foreigntourists tourists touristswere were were shunning shunning shunningmuseums museums museumsinin inthe the thecountry country countrydue due duetoto totheir their their poor poor poorstate state stateand and andinadequate inadequate inadequateartefacts artefacts artefacts–––with with withone one one Ghanaian Ghanaian Ghanaianvisitor visitor visitortoto tothe the theNational National NationalMuseum Museum Museumcalling calling calling itititaaa“national “national “nationaldisgrace” disgrace” disgrace”“The “The “Thenational national nationalmuseum museum museumisisis aaadisgrace disgrace disgracetoto tothe the thenation nation nationfor for forsuch such suchan an aneducational educational educational edifice edifice edificetoto tobe be beneglected. neglected. neglected.Many Many Manyofof ofthe the thethings things thingsinin in there there thereare are areso so soprimitive primitive primitiveand and andonly only onlyhighlight highlight highlightcertain certain certain cultures, cultures, cultures,and and andthat that thatdoes does doesnot not notspeak speak speakwell well wellofof ofus’. us’. us’.ForForFortunately, tunately, tunately,government government governmentdecided decided decidedtoto torefurbish refurbish refurbishthe the the museum museum museumand and anditititisisisback back backtoto toits its itsbest. best. best.The The Thefacility, facility, facility, located located locatedon on onthe the thepremises premises premisesofof ofthe the theGhana Ghana GhanaMuseums Museums Museums and and andMonuments Monuments MonumentsBoard Board Boardinin inAdabraka, Adabraka, Adabraka,Accra, Accra, Accra,had had had not not notseen seen seenany any anymajor major majorrefurbishment refurbishment refurbishmentsince since sinceitititwas was was

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Below are some of the possible reasons. 1. We have been affected by COVID-19 pandemic since 2019 and a rebound is just on the horizon. Tourism expects predicted that the rebound may not really take place until the middle of 2023. The COVID-19 pandemic reduced international travel by 80 % according to figures provided by UNWTO. A vaccine has been put in place and tourists are gradually gaining confidence and many nations have come to accept the fact that we may have to live with COVID-19. Many international tourists may still not perceive Africa and Ghana as the safest place to visit yet and may prefer taking tours closer to them despite a vaccine being in place. A reasonable alternative is intra-Africa tourism which is still not very successful on the continent and there are many reasons. One which comes to mind immediately is the fact that there is still a large part of the population struggling to make ends meet and are unable to earn a discretionary income. Tourism is perceived as an expensive activity on the continent and that may deterred many Africans. Africa’s working class do not also enjoy paid up holidays entitlements as part of their working conditions.

Will Ghana attract two million tourists by 2024?

Will Ghana attract two million tourists by 2024

A NEW THINKING

2. With international growing economic hardship and the increases in fuel prices globally, I cannot foresee a drastic increase in the number of arrivals in Ghana. According to statistics from UNWTO, Africa enjoyed 5% of all international arrivals and on the African continent, some of the top receiving countries include South Africa, Kenya, Morocco, and Egypt. Ghana needs to compete with these top preferred destinations which will become difficult even more difficult. The WTTC’s latest annual research shows that Following a loss of almost US$4.9 trillion in 2020 (-50.4% decline), Travel & Tourism's contribution to GDP increased by US$1 trillion (+21.7% rise) in 2021.

In 2019, the Travel & Tourism sector contributed 10.3% to global GDP; a share which decreased to 5.3% in 2020 due to ongoing restrictions to mobility. 2021 saw the share increasing to 6.1%.

In 2019, the Travel & Tourism sector contributed 10.3% to global GDP; a share which decreased to 5.3% in 2020 due to ongoing restrictions to mobility. 2021 saw the share increasing to 6.1%. In 2020, 62 million jobs were lost, representing a drop of 18.6%, leaving just 271 million employed across the sector globally, compared to 333 million in 2019. 18.2 million Jobs were recovered in 2021, representing an increase of 6.7% year-on-year. Following a decrease of 47.4% in 2020, domestic visitor spending increased by 31.4% in 2021. Following a decrease of 69.7% in 2020, international visitor spending rose by 3.8% in 2021. The above data shows how slow the rebound could be. 3. According to the UNWTO report, the number one reasons for travel and tours to Africa are for wildlife, followed by culture and Heritage. When it comes to wildlife, Ghana is at a disadvantage compared with other competing countries on the continent and that becomes a challenge. Culture and heritage is the preferred advantage for Ghana yet the greatest success was during the year of return

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and the best we could achieve was a little over 1 million. With many tourist having lost their jobs and incomes having been affected especially in North African which is the number one generating country according to data from WTTC, It will becomes difficult increasing the numbers to 2million unless something unexpected happens. 4. Many countries who have developed their tourism and succeeded have depended on domestic spending. A WTTC report further revealed that, domestic tourism continues to represent about 73% of the total global tourism spending (US$3,971 billion). While there are significant variations between countries, domestic contributions to Travel & Tourism reached 94% in Brazil and 87% in India, Germany, China and Argentina; with China accounting for 62% of global absolute growth in domestic spending over the past ten years. This growth has enabled China to climb from fourth position in 2008 to the top spot, overtaking the USA to become the largest domestic travel market in the world.

Will Ghana attract two million tourists by 2024?

INVESTMENT TIMES

Unfortunately for Ghana domestic spending is still not encouraging. Local tourists hardly make use of paid up accommodation especially on travels for funerals. 5. Government intend refurbishing a number of tourist site which is a good initiative, however the success of any destination is depen-

dent on the 3As i.e. attractions, amnesties, and accessibility. Many attractions are still not easily accessible due to the nature of the poor roads and to achieve our target a facelift of roads leading to all major attractions will need to be considered. 6. One reason why Europe enjoys more than 50% of all international arrivals is due to the well-developed transportation system. This makes traveling easy and affordable. Tour Operators are thus able to package very affordable tours. On the contrary, connecting flights on the African continent is very cumbersome and expensive. Until this challenge is resolved, a large number of African and international tourists will be dissuaded. 7. The top tourism generating countries to Ghana per the latest report from WTTC indicate as follows;

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1. United States 32% 2. Nigeria 18% 3. United Kingdom 13% 4. Côte d’Ivoire 9% 5. Germany 7% We therefore have two from West Africa,

two from Europe and The USA. The US market is dominated by the diaspora who visit mostly for heritage tourism. We need to ensure that we grow the Nigeria and Cote d’ivoire market if we are to increase our arrivals. These are our neighbors and we must take advantage and also tap into the East African and Southern African Markets. 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)244295901/0264295901. Visit our social media sites Facebook, Twitter and Instagram: FoReal Destinations

Will Ghana attract two million tourists by 2024?

Understanding the concept of liquidity in banking

A NEW THINKING

Understanding the concept of liquidity in banking

B Banks anks anks play play play aaa central central central role role role in in in all all all modern modern modern

financial financial financial systems. systems. systems. To To To perform perform perform effectively, effectively, effectively, banks banks banks must must must not not not only only only be be be safe safe safe but but but also also also be be be perperperceived ceived ceived as as as such. such. such. The The The single single single most most most important important important assurance assurance assurance of of of safety safety safety is is is capital, capital, capital, which which which can can can be be be defined defined defined technically technically technically as as as the the the excess excess excess of of of the the the ecoecoeconomic nomic nomic value value value of of of aaa bank’s bank’s bank’s assets assets assets over over over its its its liabililiabililiabilities. ties. ties. Capital Capital Capital represents represents represents aaa cushion cushion cushion that that that is is is available available available to to to cover cover cover losses losses losses of of of any any any kind. kind. kind. However, However, However, lessons lessons lessons from from from past past past experiences, experiences, experiences, more more more recently recently recently that that that of of of the the the 2008 2008 2008 global global global financial financial financial crisis, crisis, crisis, show show show that that that aaa second second second type type type of of of buffer buffer buffer is is is critical critical critical ––– the the the “liquidi“liquidi“liquidity” ty” ty”that that thatbanks banks bankshave, have, have,to to tocover cover coverunexpected unexpected unexpectedcash cash cash outflows. outflows. outflows. A A A bank bank bank can can can be be be solvent, solvent, solvent, holding holding holding assets assets assets exceeding exceeding exceeding its its its liabilities liabilities liabilities on on on an an an economeconomeconomic ic icand and andaccounting accounting accountingbasis, basis, basis,and and andstill still stilldie die dieaaasudden sudden sudden death death death ififif its its its depositors depositors depositors and and and other other other significant significant significant providers providers providers of of of funding funding funding lose lose lose confidence confidence confidence in in in the the the institution institution institution ... Liquidity Liquidity Liquidity is, is, is, therefore therefore therefore critical critical critical and and and fundamenfundamenfundamental tal tal to to to the the the effective effective effective running running running of of of aaa bank. bank. bank. This This This write write writeup up upbreaks breaks breaksdown down downthe the theconcept concept conceptof of ofliquidity liquidity liquidity and and and why why why ititit is is is of of of such such such crucial crucial crucial importance importance importance to to to banks. banks. banks. The The The article article article also also also discusses discusses discusses how how how banks banks banks can can can achieve achieve achieve adequate adequate adequate liquidity liquidity liquidity and and and the the the ecoecoeconomic nomic nomic value value value of of of maturity maturity maturity transformation. transformation. transformation.

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What What What is is is liquidity liquidity liquidity at at at aaa bank? bank? bank? Liquidity Liquidity Liquidity at at at aaa bank bank bank is is is aaa measure measure measure of of of its its its ability ability ability to to to readily readily readily find find find the the the cash cash cash ititit may may may need need need to to to meet meet meet its its itsdue due dueobligations. obligations. obligations.Liquidity Liquidity Liquiditycan can cancome come comefrom from from on on direct direct direct cash cash cash holdings holdings holdings in in in currency currency currency or or or on account account account at at at the the the Reserve/Central Reserve/Central Reserve/Central Bank. Bank. Bank. More More More commonly, commonly, commonly,itititcomes comes comesfrom from fromholding holding holdingsecurities securities securities that that that can can can be be be sold sold sold quickly quickly quickly with with with minimal minimal minimal loss. loss. loss. This This This typically typically typically means means means highly highly highly creditworthy creditworthy creditworthy securities, securities, securities, including including including government government government bills, bills, bills, which which which have have have short-term short-term short-term maturities. maturities. maturities. Indeed, Indeed, Indeed, ififif their their their maturity maturity maturity is is is short short short enough, enough, enough, the the the bank bank bank may may may simply simply simply wait wait wait till till till maturity. maturity. maturity. Such Such Such short-term, short-term, short-term, very very very safe safe safe securities securities securities also also also tend tend tend to to to trade trade tradein in inliquid liquid liquidmarkets markets marketswhere where wherelarge large largevolumes volumes volumes can can can be be be sold sold sold without without without moving moving moving prices prices prices too too too much much much and and and with with with low low low transaction transaction transaction costs costs costs (usually (usually (usually based based based on on on aaa bid/ask bid/ask bid/ask spread). spread). spread). However, However, However,aaabank’s bank’s bank’sliquidity liquidity liquiditysituation, situation, situation,particparticparticularly ularly ularly in in in aaa crisis, crisis, crisis, will will will be be be affected affected affected by by by much much much more more more than than than just just just this this this reserve reserve reserve of of of cash cash cash and and and highly highly highly liquid liquid liquid securities. securities. securities. The The The maturity maturity maturity of of of the the the bank’s bank’s bank’s illiquid illiquid illiquid assets assets assets will will will also also also matter, matter, matter, since since since some some some of of of them them them could could could mature mature mature or or or be be be sold sold sold --mostly mostly mostly at at at substantial substantial substantial losses losses losses --- during during during the the the cash cash cashcrunch, crunch, crunch,thereby thereby therebyproviding providing providingan an anadditionadditionadditional al al source source source of of of funds. funds. funds. On On On the the the other other other side side side of of of the the the balance balance balance sheet, sheet, sheet, banks banks banks often often often have have have contingent contingent contingent

Understanding the concept of liquidity in banking

INVESTMENT TIMES

commitments that that require require payments payments of of commitments commitments that require payments of cash, particularly particularly through through lines lines of of credit credit cash, cash, particularly through lines of credit offered to to some some of of their their customers. customers. Of Of offered offered to some of their customers. Of course, the the biggest biggest contingent contingent commitment commitment course, course, the biggest contingent commitment inmost mostcases casesis isthe therequirement requirementto topay payback back in in most cases is the requirement to pay back demand deposits deposits at at any any time time that that the the demand demand deposits at any time that the depositor wants. wants. depositor depositor wants. Why do do we we care care about about banks’ banks’ liquidity? liquidity? Why Why do we care about banks’ liquidity? We care care about about banks’ banks’ liquidity liquidity levels levels We We care about banks’ liquidity levels becausebanks banksare areimportant importantto tothe thefinancial financial because because banks are important to the financial systemand andthey theyare areinherently inherentlyfragile fragileifififthey they system system and they are inherently fragile they do not not have have sufficient sufficient safety safety margins. margins. The The do do not have sufficient safety margins. The recentglobal globalfinancial financialcrisis crisisin in2008 2008demondemonrecent recent global financial crisis in 2008 demonstratedthe theharm harmthat thatan aneconomy economycan cansuffer suffer strated strated the harm that an economy can suffer whencredit creditdries driesup upin inaaacrisis. crisis.Another Anotherclear clear when when credit dries up in crisis. Another clear example locally locally was was the the 2016/2017 2016/2017 financial financial example example locally was the 2016/2017 financial sector challenges challenges in in Ghana, Ghana, resulting resulting in in the the sector sector challenges in Ghana, resulting in the banking sector sector clean-up clean-up costing costing billions billions of of banking banking sector clean-up costing billions of Cedis.Liquidity Liquiditydifficulties difficultieswere wereundoubtedundoubtedCedis. Cedis. Liquidity difficulties were undoubtedly some some of of the the key key challenges challenges with with several several ly ly some of the key challenges with several of the the affected affected banks banks in in Ghana. Ghana. of of the affected banks in Ghana. Capital is is arguably arguably the the most most important important Capital Capital is arguably the most important safety buffer. buffer. ItItIt provides provides the the resources resources to to safety safety buffer. provides the resources to recover from from substantial substantial losses losses of of any any recover recover from substantial losses of any nature and and gives gives those those dealing dealing with with the the nature nature and gives those dealing with the bank confidence confidence in in its its safety. safety. However, However, the the bank bank confidence in its safety. However, the typical cause cause of of aaa bank’s bank’s failures failures is is usually usually aaa typical typical cause of bank’s failures is usually liquidity problem problem that that makes makes ititit impossible impossible liquidity liquidity problem that makes impossible to survive survive aaa classic classic “bank “bank run” run” or, or, aaa modern modern to to survive classic “bank run” or, modern equivalent, such such as as an an inability inability to to access access the the equivalent, equivalent, such as an inability to access the debt markets markets for for new new funding. funding. ItItIt is is entirely entirely debt debt markets for new funding. is entirely possible for for the the economic economic value value of of aaa bank’s bank’s possible possible for the economic value of bank’s assets to to be be more more than than sufficient sufficient to to cover coverall all assets assets to be more than sufficient to cover all of its its claims claims and and yet yet for for that that bank bank to to crumcrumof of its claims and yet for that bank to crumble because because its its assets assets are are illiquid illiquid and and its its ble ble because its assets are illiquid and its liabilities have have short-term short-term maturities maturities liabilities liabilities have short-term maturities ... Why are are banks banks prone prone to to runs? runs? Why Why are banks prone to runs? A bank bank run run is is the the term term used used to to describe describe aaa A A bank run is the term used to describe situation where where large large groups groups of of depositors depositors situation situation where large groups of depositors withdraw their their money money from from banks banks simultasimultawithdraw withdraw their money from banks simultaneously due due to to fears fears that that the the bank bank will will neously neously due to fears that the bank will become insolvent. insolvent. Banks Banks have have always always been been become become insolvent. Banks have always been prone to to runs runs because because one one of of their their principal principal prone prone to runs because one of their principal socialpurposes purposesis isto toperform performmaturity maturitytranstranssocial social purposes is to perform maturity transformation, also also known known as as time time intermediaintermediaformation, formation, also known as time intermediation. In In other other words, words, they they take take demand demand tion. tion. In other words, they take demand deposits and and other other short-term short-term funds funds and and deposits deposits and other short-term funds and lend them them out out at at longer longer maturities. maturities. Maturity Maturity lend lend them out at longer maturities. Maturity

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transformation is is useful useful because because depositors depositors transformation transformation is useful because depositors often have have aaa strong strong preference preference for for liquidity liquidity often often have strong preference for liquidity atthe theshortest shortestpossible possibletime, time,yet yetmuch muchof ofthe the at at the shortest possible time, yet much of the useful activity activity in in the the economy economy requires requires useful useful activity in the economy requires assured funding funding for for longer longer periods periods ––– usually usually assured assured funding for longer periods usually years. years. years. Banks square square this this circle circle by by relying relying on on the the Banks Banks square this circle by relying on the assumption that that most most deposits deposits are are “sticky”. “sticky”. assumption assumption that most deposits are “sticky”. Demand deposits deposits can can theoretically theoretically all all be be Demand Demand deposits can theoretically all be withdrawn in in aaa single single day, day, yet yet their their average average withdrawn withdrawn in single day, yet their average balancesshow showremarkable remarkablestability stabilityin innormal normal balances balances show remarkable stability in normal times. Therefore, Therefore, banks banks can can lend lend out out the the times. times. Therefore, banks can lend out the funds for for longer longer periods periods with with aaa fair fair degree degreeof of funds funds for longer periods with fair degree of assurancethat thatthe thedeposits deposits will will remain remainavailavailassurance assurance that the deposits will remain available or or that that equivalent equivalent deposits deposits can can be be able able or that equivalent deposits can be obtained from from others others as as needed, needed, perhaps perhaps obtained obtained from others as needed, perhaps with aaa modest modest boost boost in in deposit deposit rates. rates. with with modest boost in deposit rates. The problem, problem, however, however, is is that that sometimes sometimes The The problem, however, is that sometimes in aaa bank, bank, or or in in depositors lose lose confidence confidence in depositors depositors lose confidence in bank, or in the banking banking system, system, and and withdraw withdraw their their the the banking system, and withdraw their

Liquidity is, therefore critical and fundamental to the effective running of a bank. This write up breaks down the concept of liquidity and why it is of such crucial importance to banks. The article also discusses how banks can achieve adequate liquidity and the economic value of maturity transformation.

Understanding the concept of liquidity in banking

A NEW THINKING

funds funds in in large large volumes volumes than than normal. normal. This This is is funds in large volumes than normal. This is the the classic classic “bank “bank run” run” that that has has caused caused the the the classic “bank run” that has caused the demise demise of of many many a a bank bank over over the the centuries. centuries. demise of many a bank over the centuries. The The surest surest way way to to counter counter aaa bank bank run run is is to to The surest way to counter bank run is to restore restore confidence. confidence. No No bank bank that that engages engages in in restore confidence. No bank that engages in aaanormal normallevel levelof ofmaturity maturitytransformation transformationcan can normal level of maturity transformation can survive survive a a bank bank run run without without some some form form of of supsupsurvive a bank run without some form of support. port. There There is is much much that that aaa central central bank bank can can port. There is much that central bank can do do to to aid aid with with liquidity liquidity crises, crises, but but there there are are do to aid with liquidity crises, but there are limits limits to to what what can can be be accomplished. accomplished. limits to what can be accomplished. The The risks risks of of deposit deposit runs runs have have been been demondemonThe risks of deposit runs have been demonstrated strated often often enough enough that that many many countries countries strated often enough that many countries have have aaa system system of of deposit deposit insurance. insurance. These These have system of deposit insurance. These guarantee guarantee that that bank bank depositors depositors will will not not lose guarantee that bank depositors will not lose lose their their funds, funds, up up to to certain certain specified specified amounts. amounts. their funds, up to certain specified amounts. Sometimes Sometimes there there are are limits limits on on what what entities Sometimes there are limits on what entities entities are are insured. insured. Banks Banks in in Ghana, Ghana, for for example, example, are insured. Banks in Ghana, for example, may may not not have have insurance insurance on on their their deposits deposits in may not have insurance on their deposits in in other other banks. banks. Deposit Deposit insurance insurance is is aaa very very other banks. Deposit insurance is very important important protection protection against against bank bank runs. runs. important protection against bank runs. However, However, ititit is is important important to to note note that that modern modern However, is important to note that modern banks banks often often rely, rely, to to aaa significant significant extent, extent, on on banks often rely, to significant extent, on short-term short-term borrowings borrowings in in the the financial financial short-term borrowings in the financial market. market. Consequently, Consequently, ititit doesn’t doesn’t have have to to take take market. Consequently, doesn’t have to take simultaneous simultaneous large large numbers numbers of of depositors’ depositors’ simultaneous large numbers of depositors’ withdrawal withdrawal to to become become aaa serious serious problem. problem. withdrawal to become serious problem. The The inability inability to to roll roll over over debt debt through through new The inability to roll over debt through new new securities securities issuances issuances has has aaa similar similar effect effect to to securities issuances has similar effect to deposit deposit withdrawals. withdrawals. Again, Again, the the 2008 2008 global global deposit withdrawals. Again, the 2008 global financial financial crisis crisis demonstrated demonstrated this, this, since since very very financial crisis demonstrated this, since very few few banks banks experienced experienced deposit deposit runs, runs, yet yet this few banks experienced deposit runs, yet this this did didnot noteliminate eliminateliquidity liquidityproblems. problems.To Tominiminidid not eliminate liquidity problems. To minimise mise this this risk, risk, some some banking banking groups groups have mise this risk, some banking groups have have stringent stringent limits limits to to their their reliance reliance on on wholesale wholesale stringent limits to their reliance on wholesale funding funding funding How How can can banks banks achieve achieve adequate adequate How can banks achieve adequate liquidity? liquidity? liquidity? Banks Banks can can increase increase their their liquidity liquidity in in multiple multiple Banks can increase their liquidity in multiple ways, ways, each each of of which which ordinarily ordinarily has has aaa cost, cost, ways, each of which ordinarily has cost, including including shortening shortening asset asset maturities, maturities, including shortening asset maturities, improving improving the the average average liquidity liquidity of of assets, assets, improving the average liquidity of assets, lengthening lengthening liability liability maturities, maturities, issuing issuing more lengthening liability maturities, issuing more more equity, equity, reducing reducing contingent contingent commitments commitments equity, reducing contingent commitments and and obtaining obtaining liquidity liquidity protection protection and obtaining liquidity protection ... How How much much liquidity liquidity is is enough? enough? How much liquidity is enough? Since Sinceliquidity liquiditycomes comesat ataaacost, cost,aaabank bankfaces facesaaa Since liquidity comes at cost, bank faces trade-off trade-off between between the the safety safety of of being being highly trade-off between the safety of being highly highly

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liquid and and the the expense expense of of obtaining obtaining liquid liquid and the expense of obtaining it. This This makes makes ititit difficult difficult to to answer answer it. it. This makes difficult to answer the question question of of how how much much liquidity liquidity is is the the question of how much liquidity is enough. The The complexity complexity of of the the finanfinanenough. enough. The complexity of the financial system system makes makes ititit even even more more chalchalcial cial system makes even more challenging at at predicting predicting its its future future state state lenging lenging at predicting its future state and for for that that matter, matter, the the probability probability and and for that matter, the probability and severity severity of of future future liquidity liquidity and and severity of future liquidity crunches. crunches. crunches. Banks try try to to ensure ensure that that they they have have Banks Banks try to ensure that they have sufficient liquidity liquidity to to meet meet all all relerelesufficient sufficient liquidity to meet all relevant regulatory regulatory requirements, requirements, plus plus aaa vant vant regulatory requirements, plus buffer to to reduce reduce the the likelihood likelihood of of buffer buffer to reduce the likelihood of falling below below these these thresholds thresholds and and falling falling below these thresholds and trigger aaa regulatory regulatory or or market market trigger trigger regulatory or market response or or create create constraints constraints on on response response or create constraints on their activities. activities. In In aaa similar similar way, way, they they their their activities. In similar way, they try to to ensure ensure that that they they have have sufficient sufficient try try to ensure that they have sufficient liquidity to to avoid avoid aaa downgrade downgrade from from liquidity liquidity to avoid downgrade from the credit credit rating rating agencies agencies to to aaa level level the the credit rating agencies to level below the the bank’s bank’s target target rating. rating. More More below below the bank’s target rating. More sophisticated banks banks also also try try to to hold hold sophisticated sophisticated banks also try to hold theprobability probabilityof ofaaacrippling cripplingliquidity liquidity the the probability of crippling liquidity crisis to to below below some some fraction crisis fraction of of aaa fraction of crisis to below some percent percent each each year, year, based based on on their their percent each year, based on their internal internal modelling. modelling. internal modelling. What What is is the the economic economic value value of of matumatuWhat is the economic value of maturity rity transformation? transformation? rity transformation? Policymakers Policymakers face face aaa similar similar trade-off trade-off Policymakers face similar trade-off to to the the banks banks when when setting setting the the approapproto the banks when setting the appropriate priate regulatory regulatory requirements requirements for for priate regulatory requirements for bank bank liquidity. liquidity. With With very very high high liquidiliquidibank liquidity. With very high liquidity ty requirements, requirements, banks banks will will be be conconty requirements, banks will be considerably siderably safer, safer, all all things things being being siderably safer, all things being equal. equal. However, However, the the assumption assumption equal. However, the assumption doesn’t doesn’t wholly wholly apply apply in in the the real real doesn’t wholly apply in the real world. world. IfIfIf maturity maturity transformation transformation is is world. maturity transformation is an an important important source source of of their their profitprofitan important source of their profitbusiness models models ability, ability, then then banks’ banks’ business ability, then banks’ business models could become become more more fragile fragile with with could could become more fragile with excessive liquidity liquidity requirements, requirements, excessive excessive liquidity requirements, unlessthe theadded addedcosts costscan canbe bepassed passed unless unless the added costs can be passed through to to borrowers borrowers and and other other cuscusthrough through to borrowers and other customers, with with its its own own disadvantages disadvantages tomers, tomers, with its own disadvantages

Understanding the concept of liquidity in banking

INVESTMENT TIMES

for for the economy. for the the economy. economy. More More broadly, policymakers must consider the Morebroadly, broadly,policymakers policymakersmust mustconsider considerthe the question question of the social value of maturity transquestion of of the the social social value value of of maturity maturity transtransformation formation to the entire economy. there is formation to to the the entire entire economy. economy. IfIfIf there there is is little little added value, then the risks of bank run, little added added value, value, then then the the risks risks of of bank bank run, run, and and similar phenomenon would surely push and similar similar phenomenon phenomenon would would surely surely push push regulators regulators to set very high liquidity requireregulators to to set set very very high high liquidity liquidity requirerequirements. ments. On the other hand, the social value of ments.On Onthe theother otherhand, hand,ifififthe thesocial socialvalue valueof of maturity maturity transformation is judged to outweigh tooutweigh outweigh maturitytransformation transformationis isjudged judgedto the the perceived risks as was the case during the perceived perceived risks risks ––– as as was was the the case case during during the the COVID-19 pandemic policymakers may the COVID-19 COVID-19 pandemic pandemic ––– policymakers policymakers may may relax relax banks’ liquidity requirement as we saw in relaxbanks’ banks’liquidity liquidityrequirement requirementas aswe wesaw sawin in many many jurisdictions including Ghana. many jurisdictions jurisdictions including including Ghana. Ghana.

manage to to reconcile reconcile these these needs. needs. This This isis manage one of of the the most most onerous onerous duties duties of of policypolicyone makers of of modern modern times times -- to to find find the the right right makers balance between between the the risks risks and and benefits benefits of of balance maturity transformation. transformation. maturity Alhassan Alhassan AlhassanMusah, Musah, Musah, Treasurer, Treasurer, Treasurer,Stanbic Stanbic StanbicBank Bank BankGhana. Ghana. Ghana.

Most Most analysts believe that banks allowing Most analysts analysts believe believe that that banks banks allowing allowing depositors depositors ready access to their money, while depositors ready ready access access to to their their money, money, while while at at the same time allowing most of that money at the the same same time time allowing allowing most most of of that that money money to to be invested in illiquid and long-term assets to be be invested invested in in illiquid illiquid and and long-term long-term assets assets is is very productive activity. This is because is aaa very very productive productive activity. activity. This This is is because because ititit allows allows the economy to have its cake and also allows the the economy economy to to have have its its cake cake and and also also eat eat it, providing liquidity without foregoing eat it, it, providing providing liquidity liquidity without without foregoing foregoing long-term, long-term, illiquid investments. you were to long-term, illiquid illiquid investments. investments. IfIfIf you you were were to to enforce enforce narrow banking, you would be denyenforce narrow narrow banking, banking, you you would would be be denydenying ing the economy one of the main ways we ing the the economy economy one one of of the the main main ways ways we we

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Understanding the concept of liquidity in banking

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