Business24 Newspaper - 25th Sept 2020

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FRIDAY SEPTEMBER 25, 2020

NO. B24 / 105 | NEWS FOR BUSINESS LEADERS

FRIDAY SEPTEMBER 25, 2020

Renewables key to attaining universal electricity access, S IES says

European investors seek clarity on GIPC Act

By Patrick Paintsil p_paintsil@hotmail.com panish investors and the wider European business community have affirmed their readiness to contribute significantly to the country’s industrialisation and development cause, but they want the local investments promotor, Ghana Investment Promotion Centre (GIPC), to come clear on its investmentcourting law that is set to be reviewed.

Cont’d on page 3

Appolonia bids for special economic zone status for 200-acre industrial park

President Nana Akufo-Addo earlier this year cut the sod for the construction of 17MW solar plants in the Upper West region -- the largest of such facility in the country

By Benson AFFUL affulbenson@gmail.com

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he Institute for Energy Security (IES), the energy research think tank, says Ghana needs to increase investment in renewable energy to help it achieve universal access to

electricity by the new target date of 2025.

The proportion of the population with access to electricity reached 85 percent in 2019. Previously, the government had set 2020 as the target year to attain universal access to electricity, but this has been pushed forward to 2025.

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Failure to meet the national renewable energy goal of 10 percent contribution to the energy-generation mix contributed to the failure to achieve universal access to electricity as initially projected, the IES said.

Cont’d on page 3

INTERNATIONAL MARKET USD$1 =GHC 5.6734*

BRENT CRUDE $/BARREL NATURAL GAS $/MILLION BTUS

GHANA REFERENCE RATE

15.12%

GOLD $/TROY OUNCE

OVERALL FISCAL DEFICIT

11.4% OF GDP

AVERAGE PETROL & DIESEL PRICE:

A

ppolonia City, a real estate developer, says talks are far advanced with the government towards obtaining legal designation of its 200acre industrial park as a special economic zone.

Cont’d on page 2

14.5%*

PROJECTED GDP GROWTH RATE

By Eugene Davis

0.9% GHC 5.13*

Follow us online: $39.80 1.79 1,842.40

CORN $/BUSHEL

329.50

COCOA $/METRIC TON

$2,620

COFFEE $/POUND:

$109.65

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NEWS/EDITORIAL Editorial / News

MONDAY 142020 2020 FRIDAY SEPTEMBER SEPTEMBER 25,

EDITORIAL Editorial

Pay before boarding order needs a rethink

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Time to pay critical attention to renewable energy The new directive for all passengers to pay for their COVID-19 test online before their arrival at Kotoka International Airport has been meet with resentment by airlines and passengers.

condition for boarding of flights country� s COVID-19 testing to KIA.” regime.

T h e n e w d i re c t ive , h a s however, been described by airlines as detrimental to the renewed efforts to stimulate demanduniversal for air travel, given that he country’s investment that access to cash payments remains the At aintime when passengers are the renewable energy electricity is “feasible with predominant payment still coming to terms with the the space needs to improve, supportmode of of renewable for most Ghanaian travelers.

US$150 � GHC 900� mandatory if we are to achieve universal energy sources, since a paymenttoforelectricity COVID-19 test An airline proportion operator who access by upon the considerable of arrival at KIA, the new directive wishes to remain anonymous, new target date of 2025. the communities awaiting has generated more debate. told Business24 that “The cost is

T Wash your hands 2

Cover your cough 3

The proportion of the Passengers travelling Ghana population with toaccess will from Tuesday, September 15 to electricity reached 85 be required to make online percent in 2019. Previously, payments for the mandatory the government had set 2020 C OV I D -1 9 te s t at Ko to k a as the target Airport year toprior attain International to universal access to electricity, boarding of their flight, a but pushed d i r ethis c t i vhas e b been y Fro ntier forward toa 2025.

HealthC re� the company Failure to to meet the national contracted carry out the antigen test atenergy KIA--to all airlines renewable goal of on Friday has revealed.

10 percent contribution to theB y energy-generation t h e n e w d i r e c t mix ive, contributed the to failure “Passengers aretorequired show to achieve universal access proof of payment to airlines as a to electricity as initially projected, the IES said.

The Institute of Energy Securities (IES) reckons

connection to the national already too grid high are and currently now this electricity new policy is also going be difficult to access becauseto they iare m p l elakeside m e n t e d . communities, There are hundreds of Ghanaian traders with others planted on islands who travel to buy goods to retail that in the require country. connection by sub-marine cables.”

“MostIES of them any The saiddon� thet carry country electronic payment cards to be ought to do more if it must able to pay online. They should meet its national goal of have the flexibility to pay cash using renewable when they arrive.” energy for 10 percent of total energy The Consumer Protection production by the new target Agency � CPA� has also raised date of 2030. critical questions about the The think tank said relatively high cost of the although Ghana abounds with renewable energy resource potential, particularly biomass, solar and wind—and,

The CPA� s Chief Executive Officer, Kofi Kapito, said in as much as the government want to curb imported cases of the respiratory must and not to a lesserdisease, extent,itsmall burden the passenger but charge mini-hydropower—the bulk of what is enoughremains to coverlargely their this potential cost and not to profit from the untapped. passenger.

For the universal access “Look around and you ambition to Africa be realised, see that what is paid in Ghana for the access rate must grow the test is the highest.

Why on average by 3 percentage should be�year ” pointsthat each to the target

He also raised questions about date, it added. why the Noguchi, Memorial Fortunately Ghana Institute of aboundsfor Medical with Research renewable the University of Ghana, was not energy resource potential, made to handlebiomass, the testing solar for a particularly reasonable fee but rather a and wind—and, to a lesser contract given to a foreign extent, small and minicompany to do what Noguchi hydropower—the bulk of this could adequately handle.

potential remains largely Business24 would like to urge untapped. a flexible approach that allows We share the view that passengers to either pay online more needs to be done in this or cash on arrival. space going forward to truly diversify the country’s energy mix

COVID-19: Banks deferred GH¢3bn in loan repayments CONTINUED FROM COVER

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Renewables key to attaining universal electricity access, IES says

that the desired outcomes are outbreak had transformed their team structures to the new way of achieved and the economy operations, the bank chiefs working in order to maximise brought back on track.” responded that the immediate efficiencies of digital banking, Mr. Awuah� s remarks were response was to enforce remote and ensure less-paper operations reinforced by majority of the top working while realigning workers� and requirements for social distancing. In the long run, these bank executives who responded roles. measures may result in possible While the majority, 69 percent, to the survey. The respondents layoffs for some whose jobs of respondents indicated that advised the Bank Continued from coverof Ghana to increase stakeholder consultation remote working will become a become automated,” the report thinktotank’s comments inThe order propose more permanent option going forward, said.

Commenting on the findings of there was general consensus that were contained in an analysis beneficial policies. the survey, which was on the the new norm will ultimately lead of renewable energy policies in This, they said, will help to the shedding of workers whose theme “The new normal� banks� the manifestoes of the governing estimate the timelines and extent jobs have become automated. response to COVID-19”, PwC� s New Patrioticthe Party (NPP) and to which policies of the the Country Senior Partner, Vish “ M o s t b a n k s i n t e n d t o opposition National Democratic regulator will remain available. permanently incorporate remote Ashiagbor, cautioned that for Congress S o m e r(NDC). e s p o n d e n t s s i m p l y working as an option available to workers that survive the digital “After continuously increasing thought that there was the need staff based on their roles. 12.5� of p ro g re s s i o n , t hey h ave to islands that require connection access rate must grow on average for detailed guidelines from the on power generation capacity from banks confirmed that they have upgrade their skills to remain sub-marine cables.” by 3 percentage points each year government and Bank of Ghana largely thermal sources, and by already begun and will continue relevant.

The IES said the country ought on the implement ation of increasing electricity access to realign the job roles and work to the target date, it added. measures put in place toitcurb the to do more if it must meet its Meanwhile, data from the through grid expansions, is now impact of the pandemic. national goal of using renewable International Renewable time for Ghana to be religious clear on In its their policyview, goal of 100 guidance percent energy for 10 percent of total Energy Agency (IRENA) point to was missing, and though this energy production by the new continued decline in solar and national electricity access using c o u l d b energy e s h a as r e ad catalyst,” d u r i n g target date of 2030. wind power costs. renewable stakeholder consultation, they The think tank said although The data indicate that solar it said. could not fully embed the new Universal access to electricity Ghana abounds with renewable photovoltaic (PV) prices based policies in operational strategy energy resource potential, on competitive procurement is “feasible with the support of without a detailed documented particularly biomass, solar and could average close to 4 cents renewable energy sources, since directive. a considerable proportion of the wind—and, to a lesser extent, (US$0.039) per kilowatt-hour for ADVERTISE WITHcommissioned US projects in 2021, communities awaiting connection small and mini-hydropower—the Post-pandemic banking TEL: +233 024 212 2742 bulk of this potential remains down 42 percent compared to to the national electricity grid 2019, and more than one-fifth are currently difficult to access largely untapped.

When asked by the audit firm www.thebusiness24online.net For the universal access less than the cheapest fossil-fuel because they thearepandemic� lakeside s about how communities, with others planted ambition to be realised, the competitor, like coal-fired plants.

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FRIDAY SEPTEMBER 25, 2020

European investors seek clarity on GIPC Act Continued from cover Celestino Alvarez-Neira, Chairman of the European Business Organisation (EBO)—a network of over one thousand investors—told Business24 that large multinationals are specific about where they invest and look closely at countries’ legal frameworks to know where and how to invest.

“For the past three years, EU businesses have invested close to €3bn in Ghana, and it’s a number that has been growing in spite of the difficult economic context owing to the coronavirus pandemic. But we think it would be important for the GIPC to clearly define the legal framework that foreign direct investments operate under—and we hope this will be done as soon as possible.

“A clearly defined act from the GIPC will be a push for investments,” he said at a business roundtable organised by the Spain-Ghana Chamber of Commerce (SGCC) in Accra.

According to him, the clarity of the GIPC Act, which is to be

Celestino Alvarez-Neira says a well-defined foreign investment law will attract more FDI to Ghana.

reviewed, will guide European investors on how and under which conditions to invest in the country.

“Foreign direct investment is always the engine of growth for every economy; you can develop a country from the inside or the outside, and FDI is a key component of that.

“Today, any foreign company wanting to operate in Ghana must have a certain share capital,

quotas and other established conditions. We all know in the sector that this act is going to be reformed, and so we are waiting for the new conditions,” he added.

To Mr. Alvarez-Neira, foreign companies that decide to set up in Ghana to create jobs and wealth for themselves and the country need to have very clear conditions.

The Spain-Ghana Chamber

of Commerce hosts Spanish businesses operating in the domestic market as well as Ghanaian companies that deal in Spanish products.

The business roundtable was therefore to discuss with the GIPC some challenges faced by both existing and potential Spanish investors.

President of the chamber, Nadim Ghanem-Pares, said the GIPC has done a great job helping Ghana to develop and attract investments, but there was still room for improvement, especially in terms of relaxing the barriers to investment.

“One major item we want to put on the table is for the GIPC to drop the barriers of entry for businesses that are really not available in Ghana. We want to protect local businesses and industry, but we cannot put barriers to businesses that do not exist, like niche technologies that are peculiar to Spain but could bring a lot of value to the Ghanaian economy,” he told Business24.

Appolonia bids for special economic zone status for 200-acre industrial park Continued from cover The industrial park, located near Appolonia’s residential development between Oyibi and Afienya in Greater Accra, hosts businesses in logistics, warehousing, light manufacturing, and research and development. It features over 1.8 million square feet of serviced land on the 200-acre site.

“We are in discussions with the Ministry of Trade and Industry to designate Appolonia industrial park as a special economic zone.

What that comes with are tax incentives, as is the case across the world,” Adamu Ben-Mahmoud Jnr., Appolonia’s Utilities and Urban Infrastructure Manager, told Business24 in an interview during a tour of the facility by officials of the UK-Ghana Chamber of Commerce (UKGCC).

“Those discussions are progressing, and there is clear commitment from government to do so. It is the legal framework that has to be finalised, and we

are sure when that is done, we will be ready to take off.”

A special economic zone (SEZ), such as Ghana’s free zone enclave, is an area in which the business and trade laws are different from the rest of the country. SEZs are located within a country’s national borders, and their aims include increased investment, employment, increased exports, and job creation.

Mr. Ben-Mahmoud said the industrial park is scalable to a size of 400 acres, depending on demand.

Companies that are currently developing facilities in the park include MainOne, Nickseth Construction, Alusynco, Crownhouse Construction & Logistics, PUMA Energy, and Total Ghana.

The Executive Director of the UKGCC, Adjoba Kyiamah, said one of the goals of the chamber is to have their member companies interact with each other to enhance business relations.

She also stated that the tour was

Officials of UKGCC listen to a site engineer’s briefing during their tour of Appolonia’s industrial park.

to showcase Appolonia’s facility to international member companies of the chamber seeking to do business in the country.

“Coming here to see that there has been development, buildings, people living here, and setting

up of the industrial park is very refreshing. For our member businesses that are coming into Ghana and are looking for a location to site their businesses, this is ideal.”

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FRIDAY SEPTEMBER 25, 2020

Book Chat

WOLE SOYINKA A Season of Anomy: Covid - 19 and the Creative Muse

In Conversation with

Ivor Agyeman-Duah 2:00pm 26th September 2020 Goethe-Institut, Cantonments, Accra Streaming Live on A special signing of books Beyond Aesthetics and Between the Generations.

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For More Information Call +233 20 116 3776

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News

FRIDAY SEPTEMBER 25, 2020

World Bank approves US$125million for GAMA SWP project

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he World Bank Board of Executive Directors has approved US$125 million from the International Development Association for the Greater Accra Metropolitan Area Sanitation and Water Project (GAMA SWP).

This additional financing will support the Government of the Republic of Ghana’s effort to reach 550,000 people in low income urban communities of the Greater Accra Metropolitan Area (GAMA) and the Greater Kumasi Metropolitan Area (GKMA) with improved sanitation and water

supply services.

“Providing equitable access to safe and improved water supply and sanitation services is essential to improve people’s lives particularly in the context of the COVID-19 pandemic. Through this project, we are committed to provide better access to water and sanitation to the most vulnerable, therefore improving lives and reducing poverty,” said Pierre Laporte, World Bank Country Director for Ghana, Sierra Leone and Liberia.

The additional financing to the GAMA SWP will also help

strengthen the management of environmental sanitation services in the GAMA and GKMA. It will provide water, sanitation and hygiene facilities to schools and healthcare facilities and promote handwashing.

Households benefiting from toilets and/or water connections will benefit from handwashing facilities and relevant handwashing training.

“By promoting the use of safe sanitation and hygiene practices, the existing project has enabled vulnerable communities combat the spread of COVID-19 pandemic.

While encouraging results have

been achieved so far, more work is needed to address remaining challenges and ensure sustainable universal coverage by 2030,” said Yitbarek Tessema, Senior Water Supply and Sanitation Specialist at the World Bank.

The project will also improve coordination between key agencies and strengthen the capacity and performance of the Ghana Water Company Limited (GWCL) and Metropolitan and Municipal Assemblies by reducing Non-Revenue Water, improving wastewater management, addressing issues of pollution, climate-change and translating development plans into focused actions. The Government of Ghana will replicate the successful GAMA SWP approaches in Kumasi, and further expand services to targeted beneficiaries.

Overall, some of the key results include: provide 250,000 people with household toilets; 200,000 persons with institutional sanitation facilities; and 500,000 people with improved water services.

IDA is one of the largest sources of assistance for the world’s 76 poorest countries, 39 of which are in Africa. Resources from IDA bring positive change to the 1.6 billion people who live in IDA countries. Since 1960, IDA has supported development work in 113 countries. Annual commitments have averaged about US$21 billion over the last three years, with about 61 percent going to Africa.

Develop security models to deal with sophisticated fraud – Abiola advises banks

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he Regional CEO of UBA West Africa, Mrs. Abiola Bawuah, has charged banks and financial institutions to develop security models that can overpower the sophistication with which fraud is perpetuated.

She noted the novel Coronavirus pandemic has led us to be more dependent on technology which present a challenge to securing them in order to protect our systems from these fraudsters.

“These fraudsters become sophisticated by the day, and it behoves on us, to also be a step ahead of them. For all the many years that I have known Chiedu, I know he’s got the right expertise to write a book that can provide solutions for Fraud.

Mrs. Bawuah was speaking at a ceremony where two books that speak to fraud and building SMEs

Regional CEO, UBA West Africa, Mrs. Abiola Bawuah

were launch in Accra.

The Author who is the Country Chief Inspector of the United Bank for Africa, Chiedu Okonta also called on businesses and financial institutions to institute robust security systems and surveillance in order to be fraud protected. This he noted has become necessary, due to the increasing cases of fraud recorded in the financial sector.

A 2014 PWC report showed the

typical business loses 5% of annual revenues due to fraud and when this is applied to global GDP, the result is an estimated $3.7 trillion in annual fraud losses.

This report also indicated, only 14% of businesses are able to fully recover from unauthorized transactions and other fraudulent activities.

The rising costs of fraud as a percentage of revenues present a cause for concern to the global

economy.

As part of efforts to nib this canker in the bud, the financial sector has been presented with two books on the subject matter.

The books “Stamp out Fraud in your stem and Keys to Sustainable SMEs” are thought provoking on combating fraud and assisting with SME development.

Chiedu Okonta underscored the need for business, both large and small to be vigilant and responsive to the growing demands of the business environment “I have written these books after many years of careful practice and surveillance. I am optimistic that it will be a reliable guide for SMEs who want to grow, and also support large businesses to be able to withstand fraud,” he said.

The books are currently available in all leading bookshops.

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FRIDAY SEPTEMBER 25, 2020

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News

FRIDAY SEPTEMBER 25, 2020

ICC and others join forces to help communities recover better from the pandemic

by others. SMEs need a way to facilitate this vital exchange of ideas, learning and experience with each other and with organisations and institutions in a position to support them.”

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he United Nations Development Programme (UNDP), the United Nations Global Compact (UN Global Compact) and the International Chamber of Commerce (ICC) have established the COVID-19 Private Sector Global Facility, a global initiative and collaboration bringing together public and private sector partners to help local communities recover better from the pandemic. Deutsche Post DHL Group, Microsoft Corp. and the PwC network (“PwC”) have already joined the COVID-19 Private Sector Global Facility, and the initiative is open for other like-minded private sector organizations that want to contribute.

The Global Facility is a response to corporate calls to action for private sector leaders and governments to work together to address the negative impacts of the coronavirus pandemic. The initiative has been established to better coordinate their responses, helping to ensure that immediate stimulus efforts flow into the real economy.

The Global Facility will operate at both the global and national levels. It aims to co-create solutions that are tailored to the phase of the COVID-19 pandemic in a given area and the specificities of the local private sector and government context. Guided by the UN Global Compact’s Ten Principles and the Sustainable Development Goals, the Facility will support a multisectoral, whole-of-government and wholeof-society approach to face the multidimensional nature of the crisis. Recovery efforts will focus on how to rebuild more inclusive economies and societies, to set a new course for a socially just, low-carbon and climate-resilient world where no one is left behind. Initial projects will focus on the countries of Colombia, Ghana, the Philippines and Turkey. Both the geographical scope and participating partners will expand as the Global Facility develops.

“Solidarity to ‘Recover Better Together’ can boost our collective efforts not only to cope with the crisis but overcome it.

UNDP’s footprint across some 170 countries and territories, combined with the UN Global Compact’s network of more than 10,000 companies and 68 Local Networks around the world, and the International Chamber of Commerce’s network of over 45 million companies, multiplies our collective capacity and

potential. The Facility is the first of its kind – designed to join forces across public and private sectors to serve humanity in an imperative moment,” said UNDP Administrator Mr. Achim Steiner.

The COVID-19 Private Sector Global Facility was announced by Mr. Steiner at the SDG Business Forum during the UN General Assembly, the largest and most inclusive UN convening of private sector leaders. Launched under the motto “Recover Better Together”, the timing of this initiative has special importance, marking the commemoration of some important UN-related milestones: the 75th anniversary of the founding of the United Nations; the 20th anniversary of the establishment of the Global Compact; and the Centenary of ICC’s founding after WWI at a time when multilateralism is facing the greatest challenge of its generation.

Initiating partners The Initiating Partners are UNDP, UN Global Compact and ICC. Together, they will bring their unique access to global expertise on responsible business practices, economic recovery, green business transformation and multi-hazard risk management.

“As COVID-19 disrupts societies, development agendas must adjust accordingly.

There is a need for inclusive multilateralism, drawing on the critical contributions of civil society, business, foundations, the research community, local authorities, cities and regional governments.

By unlocking public-private and private-private cooperation for a sustainable response to COVID-19 challenges, it is possible to recover better and

build more resilient economies,” said Mr. Steiner.

The private sector has been acutely affected by the COVID-19 pandemic. The 10 principles of the UN Global Compact affirm the belief that businesses exist to serve and advance their societies, and their success cannot come at the cost of social or environmental regression.

“It is a moment of human tragedy and intense economic and social upheaval. But it is also a moment of possibility. Through partnerships like the COVID-19 Private Sector Global Facility we will support companies to Recover Better Together from the pandemic and finally confront global inequality by taking action, as well as mitigate the worst impacts of a climate emergency that threatens all of humanity.

Together we can construct a new paradigm of resilience,” said Ms. Sanda Ojiambo, CEO & Executive Director of the UN Global Compact.

The COVID-19 pandemic has forced around 70% of small- and medium-sized enterprises (SMEs) to shut down their operations.

SMEs represent 50% of global GDP and more than 70% of global employment. The partners of the COVID-19 Private Sector Global Facility, representing multinational, global and local private sector stakeholders, commit to joint projects to develop policy and financial solutions for pandemic relief.

The Secretary General of ICC, Mr. John W.H. Denton AO said: “ICC’s local networks can bring value to the cooperation by reaching small business owners who want to have their challenges understood, their ideas heard, and their efforts to Recover Better recognized and built upon

“The Global Facility will provide practical support for the real economy, delivered through in-country projects targeted at the needs of SMEs. These will range from digital skills training to the delivery of major infrastructure projects.

Ghana’s inclusion in the initial 4 participating countries serves as a solid foundation for Africa, as the geographical scope expands and the Facility develops” said Ms. Valentina Mintah ICC Executive Board Member.

“The pandemic has radically changed the lives of entrepreneurs and their countries economic environment especially in Africa.

As the focus is on Ghana, we are ready to support scale up this global impact initiative to help redefine the future of business” said Mr. Emmanuel Doni-Kwame, Secretary General of ICC Ghana Private sector involvement The COVID-19 Private Sector Global Facility is supported by strategic partners DHL, Microsoft and PwC, and is open for other like-minded private sector organizations that want to join this initiative. The strategic partners will add their expertise and technology to support this transformational recovery.

“In the current situation our employees recognize more than ever before their contribution to the well-being of the population.

Under extremely difficult circumstances Deutsche Post DHL Group kept the global flow of goods, secured supply chains and provided the world with the necessary protective equipment.

We want to share our experience of operating during one of the biggest health crises in recent history to protect lives against the pandemic. Join our efforts of connecting people improving lives to address the upcoming challenges together with our long standing partner UNDP” said Ms. Monika Schaller, EVP Group Communications, Sustainability & Brand. Deutsche Post DHL Group embarked upon the idea to support the Global Facility before its launch. The company underlined that their world-wide network enables them to make a difference on the ground for the local SMEs and helps them to survive in the present situation by solving logistical constraints.

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FRIDAY SEPTEMBER 25, 2020

9

O

Tourism

FRIDAY SEPTEMBER 25, 2020

Impact of COVID-19 on beaches

perators of beaches in the country may be licking their wounds whiles wondering why beaches remain closed when bars and restaurants have been allowed to operate during this COVID-19 pandemic.

Some may be wondering if social distance, wearing of nose masks and all other safety protocols cannot be implemented at our beaches. It is a fact that lots of our drinking bars are accommodating large gatherings. Could it be the case that the number of people wishing to visit the beaches could be controlled and limited to some few visitors? One may argue that countries that have opened their beaches have had the challenge of controlling the numbers attending and thus observing the COVID-19 protocols thus it serves us right keeping them closed.

Others may argue looking at the effect on the businesses and outdoor recreation such as beach football which is now gradually gaining some popularity in Ghana.

The La Beach Resort for example operates a range of restaurants whose clients are mostly those working in and around La. Patrons of these facilities used to relax by the bars and restaurant while enjoying the breeze emanating from the ocean.

Should La Beach Resorts and other beach resorts who operate bars and restaurants remain opened since these businesses are allowed to now operate? Per the current directives if bars and restaurants located at the beach are allowed to operate, then, irrespective of where they are located, be it in town or at the beach, they could remain opened.

Likewise, as hotels are currently operating, could it be that those located by the beach can open their beaches to their guests as long as they will adhere to the protocols? If the guests insist on relaxing at the beach whiles observing social distancing, and the hotel management allow them, could they be in violation the directive from the President of the Republic? The GTA must clarify some of these issues. In any case these directives as we all know are for the good of the country. We need to stay healthy otherwise we can’t enjoy all the beautiful attractions around us.

The continued closure of beaches may also be due to the fact that during the restrictions and lockdown, Ghanaweb came out with a news report on Sunday 12th April 2020 regarding some revealers seen enjoying themselves at a beach near chorkor. For now, these revealers may enjoy themselves elsewhere.

The closure of the beaches may still be impacting on the fortunes of the tourism industry in this COVID-19 era. The continued closure may eventually lead to deterioration of the beaches since they are not making money and maintenance could be an issue. Beaches are supposed to be cleaned if they are to attract tourist seeking the 3S i.e. Sea, Sand and Sun. Many tourists who live in the temperate and the artic zone will seek destinations that offer some good sunshine when planning their holidays.

Countries lying in the tropical zone then become the preferred destinations to meet their need.

One place where they can enjoy the sunshine they seek is at the beach. Destinations such as Ghana are then placed to help satisfy these needs. It is therefore very important as a country that we take advantage of the many economic benefits and work hard to make Ghana the preferred destination for beach tourism or bathing tourism in West Africa and eventually Africa. We face a lot of competition from neighboring countries nevertheless if things are done right we can achieve this objective. It is also important to note that countries such as The United Arab Emirates which was once a small fishing village has over the last 50 years developed rapidly and it beaches and sunshine have been one of the main drive of their economy which is being led by Dubai which is the preferred destination for many tourists. At the beginning of the New Year some English football teams move to Dubai to enjoy some sunshine and refresh.

Can we one day also be a preferred destination for European team?

Again, it is worth emphasizing that the success of a tourism destination is highly reliant on the quality of its tourism product.

The tourism product is based on available resources in the destination. The quality of the sea or ocean is a very important determinant to the success of beach tourism. Beaches that are not clean nor the sea quality that is not clean will not be the most preferred destination for

international tourists Destinations around the world are opening including beaches. The United Nations World Tourism Organisation recently confirmed in its seventh edition of the UNWTO “COVID-19 Related Travel Restrictions: A Global Review for Tourism” that an ongoing trend towards the gradual restart of tourism can finally be noticed in several global destinations although many continues to remain cautious in view of the development of the pandemic. UNWTO reported that a majority of 53% destinations around the world have now started easing travel restrictions introduced in response to the COVID-19 pandemic.

The United Nations specialized agency for tourism carried out a research and analysed restrictions up to September 1 and reported that a 115 destinations (53% of all destinations worldwide) have eased travel restrictions, an increase of 28 since July 19.

Among the destinations, two have lifted all restrictions while the remaining 113 continue to have certain restrictive measures in place. The report also includes key data on the health and hygiene infrastructure in place at destinations, alongside analysis of the rate of notifications of new COVID-19 cases.

With the help of the analysed UNWTO has determined factors that are influencing destinations’ decisions to ease restrictions. According to the report, destinations that eased travel restrictions generally have high or very high levels of health and hygiene infrastructure as well as a comparatively low COVID-19 infection rate.

Moreover, it has been found that 79% of tourism destinations with advanced economies have already eased restrictions while only 47% of destinations have eased travel restrictions in emerging economies. 64% of those destinations which have eased have a high or medium dependence on air as a mode of transport for international tourism arrivals.

Meanwhile, the report also

shows that many destinations around the world are extremely cautious about easing travel restrictions they introduced in response to the pandemic and some have passed severe measures in an attempt to keep their citizens safe. 93 destinations (43% of all worldwide destinations) continue to have their borders completely closed to tourism, of which 27 have had their borders completely closed for at least 30 weeks. The report also states that more than half of all destinations with borders completely closed to tourism are being classified as the World’s Most Vulnerable Countries. They include 10 SIDS (Small Island Developing States), one Least Developed Country (LDC) and three Land-Locked Developing Countries (LLDCs).

More than half of destinations with full restrictions still in place are also highly dependent on aviation, with at least 70% of their tourist arrivals coming by air, causing significant connectivity impacts for their citizens and economies. Zurab Pololikashvili, Secretary-General, UNWTO said in his statement that coordinated leadership and enhanced cooperation between governments means tourism is slowly but steadily restarting in many parts of the world. He said that the starting of ease of travel restrictions is also opening the doors for tourism’s social and economic benefits to return. He also shared that while remaining vigilant and cautious is highly important, authorities are also concerned about destinations with ongoing full travel restrictions, and especially where tourism is a lifeline and economic and social development are under threat. Operators of beaches are hoping that, as more and more destinations reopen government should consider their plight and ease restrictions at the beaches with enhanced safety measure whiles adhering to all COVID-19 safety protocols.

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.forealde s tinations . com or call or WhatsApp +233(0)244295901/0264295901.

Visist our social media sites Facebook, Twitter and Instagram: FoReal Destinations.

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FRIDAY SEPTEMBER 25, 2020

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News

FRIDAY SEPTEMBER 25, 2020

COVID-19 fallout: Internet traffic up by 50%

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hief Executive Officer (CEO) of Vodafone Ghana, Mrs. Patricia Obo-Nai, has disclosed that outbreak of COVID-19 in Ghana has seen the company’s operations and the demand for its services go up by 50%.

According to her, the coronavirus (COVID-19) outbreak has seen a surge and data traffic and an increase demand for network and infrastructure in Ghana.

“We’ve seen data traffic go up by about 50 per cent and so we’ve had to expand capacity to manage it as much as possible,” she said.

The CEO said this in an interview with the Bloomberg Surveillance’s live interview, which sought to find out how some changes in the telecom sector including the outbreak of COVID-19, had affected the company’s operations and services to consumers.

She said Vodafone as part of measures to satisfy consumer needs, embarked on a journey to drive digital adoption and help to establish opportunities for the educational and health sectors and small and medium-scale enterprises.

It also increased more digital wireless connectivity, enabled cashless payments, and delivered financial services through its

mobile money platform.

Mrs. Obo-Nai said Vodafone Ghana had seen a 40 per cent increase in the number of active customers on its mobile money platform since the outbreak of COVID-19, and she believed it was a good transformation as that was safer, secure, and the best way to pay bills and salaries.

She said government had partnered the telecom companies and the Electricity Company of Ghana to provide access to fibre in communities and schools, saying that were a good effort to ensure that all customers enjoyed same services.

Responding to a question on steps taken by Government halt the dominance of MTN in Ghana, CEO Of Vodafone said the telecom company is more concerned with having a positive competition in a provided equal space that would collectively help to satisfy consumer needs.

“We at Vodafone Ghana don’t have any problem so long as the actions of the regulator is helping the consumer, stimulating innovation and promoting creativity in the industry,” she said.

The CEO said bringing Vodafone under the Vodacom umbrella, had not limited the comprehensive operations of the company, however, it had enabled the two entities to share best practices, and create synergies through capitalizing systems to promote better services.

Mrs. Patricia Obo-Nai , CEO, Vodafone Ghana

Ethiopian to resume flight to Victoria Falls

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thiopian Airlines Group, Africa’s largest airline, is to resume its flight services

to Victoria Falls, African’s most spectacular natural sites effective October 6, 2020.

As countries continue to open their borders and relax travel restrictions, Ethiopian is

ready to increase frequencies to accommodate the demand by focusing on the wellbeing of customers and staff. Ethiopian is happy to welcome back business and leisure travelers to these destinations.

Passengers are kindly informed that Facemasks will be mandatory for travel and are requested to satisfy destination entry requirements such as PCR COVID-19 Clearance certificate issued by the recognized facility within 48 hours from the date of departure, in line with WHO guidelines.

Up to date destination entry requirements can be found on our website using the link https:// www.ethiopianairlines.com/aa/ travel-updates

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FRIDAY SEPTEMBER 25, 2020

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Feature

FRIDAY SEPTEMBER 25, 2020

White-Collar Crime, No Punishment Even if the latest scandals in banking reveal nothing new about the financial industry’s ethical standards, they have put a spotlight on a bigger emerging problem: the complicity of law enforcement agencies in whitecollar crime. The watchdogs are not only shirking their duties; they have joined the other side.

By: Katharina Pistor

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lthough the proper role of government in society is much debated, few would dispute that law enforcement falls within the state’s remit. But governments have increasingly turned a blind eye to enforcing the laws against the world’s most lucrative crimes: the fraud, embezzlement, tax evasion, bribery, and money laundering committed by the well-heeled.

In part, this failure can be ascribed to a lack of resources.

Law enforcement authorities often are no match for whitecollar criminals’ sophisticated techniques, which are carried out with the assistance of highpaid lawyers and accountants.

But the bigger problem is that law enforcement efforts are increasingly directed not at criminals but at journalists who attempt to uncover their crimes.

Consider Wirecard, the German payments processor and financial-service provider.

A recent darling of investors, the firm turned out to be one of the greatest frauds in Germany’s post-war history. In a classic Ponzi scheme, the company claimed to have parked abroad money that never existed. As with the Enron and Bernie Madoff scandals, the accountants, lawyers, and regulators who were supposed to safeguard the integrity of the financial system were complicit.

In addition to failing utterly to do their jobs, they turned their weapons against the journalists who tried to expose the fraud.

For example, Germany’s financial regulator, BaFin, went so far as to file a criminal complaint in April 2019 against

Dan McCrum and Stefania Palma, two Financial Times reporters who were investigating Wirecard’s accounting practices and misreporting. The Munich prosecutor’s office did not close its investigation against McCrum and Palma until September 3 this year, more than two months after Wirecard had already been forced into bankruptcy, and its CEO, Markus Braun, had been jailed pending a full criminal investigation. Apparently, the misleading information that the company and its hired agents presented to regulators was deemed more credible than the reporting of journalists working for one of the world’s most respected financial news outlets.

This is not an isolated case.

While fraud, embezzlement, tax evasion, and money laundering are still labeled as crimes in most countries, their enforcement is declining rapidly, and nowhere more so than in the United States under President Donald Trump. As my Columbia Law School colleague John C. Coffee documents in his new book, Corporate Crime and Punishment: The Crisis of Underenforcement, law-enforcement actions against corporations are down by 76% compared to the Obama era, and by 26-30% for white-collar crime in general. At the current pace, it will not take long for financial crime to be whitewashed completely.

Some might argue that such enforcement is not worth the effort. In an article named after Fyodor Dostoyevsky’s famous novel, “Crime and Punishment: An Economic Approach,” the late Nobel laureate economist Gary Becker (one of the founders of the law and economics field) argued that the key question for law enforcement is not so much morality as costs and benefits.

Because law enforcement itself

costs something, Becker asked “how many resources and how much punishment should be used to enforce different kinds of legislation … how many offenses should be permitted and how many offenders should go unpunished?”

Such normative questions, he argued, should be determined by the net “social loss,” meaning the difference between the harms to society and the gains to the criminals. By this reasoning, it followed that the higher the gains for the offenders, the more likely they would cancel out the social loss, especially in light of the high costs of policing white-collar crimes.

Law enforcement agencies in the US and elsewhere seem to have heeded Becker’s advice.

Rather than fighting crime that is lucrative for offenders but costly to detect, they have directed their limited resources against those trying to uncover these very crimes and the state’s complicity in them.

Thus, when the US Financial Crimes Enforcement Network (FinCEN) learned that the International Consortium of Investigative Journalists (ICIJ) was about to report on thousands of unanswered Suspicious Activity Reports (SARs) that had been filed with the agency, it issued a statement warning that the unauthorized publication of documents that might compromise national security constitutes a crime. The US Department of Justice, the agency added, had already been put on notice.

Undeterred, the ICIJ released its exposé on the “FinCEN Files” on September 20, detailing how big global banks – including JPMorgan Chase, HSBC, Standard Chartered, and Deutsche Bank – filed SAR after SAR and yet continued to profit from the

activities of suspect clients who were moving around billions, if not trillions, of dollars.

Under current law, filing a SAR does not require a bank to cease providing services to the client in question, but it should at least raise a red flag within that institution. It didn’t. Instead, the banks stayed the course and continued to drown FinCEN’s 267 underpaid and overworked agents in paperwork. In the meantime, third-party “market watchdogs” earned more from deflecting investigations of their clients than from monitoring their activities.

Wirecard’s legal advisers and accountants apparently jointly pocketed £120 million ($150 million) per year prior to the company’s demise.

The FinCEN files do not have all of the dramatic details of the ICIJ’s 2016 “Panama Papers” bombshell, which revealed brazen tax evasion by prominent sports stars and politicians, committed with the help of the Panamanian law firm Mossack Fonseca. In fact, much of what the FinCEN files contain has already been known for some time, which may be why the news is being met with a shrug – Plus ça change, as the French say.

But even if scandalous behavior on the part of big banks is nothing new, we should all be deeply troubled by watchdogs and law enforcement authorities’ complicity in highly lucrative crimes. Not only have they turned a blind eye to brazen lawlessness; they have proved all too willing to muzzle the free press in the process.

Katharina Pistor, Professor of Comparative Law at Columbia Law School, is the author of The Code of Capital: How the Law Creates Wealth and Inequality.

Copyright: Project-syndicate.org

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FRIDAY SEPTEMBER 25, 2020

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News

FRIDAY SEPTEMBER 25, 2020

Pay Your Staff…NLC Arbitration Panel Instructs GCNet / SGS

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three member Arbitration Panel appointed by the National Labour Commission (NLC) under Labour Act 651 and Regulation 17 of L.I 1822, and the ADR Act 798 has ordered GCNet to pay its staff made redundant recently as stated in the provisions of the HR Policy Manual without any variation or adjustment.

Ruling in the matter of voluntary arbitration as requested by Staff Welfare Association of GCNet and Management of GCNet, the Arbitration Panel directed that there was no justifable basis for the attempt by Management of GCNet to vary or adjust the existing binding HR Policy Manual at the time of implementation and execution.

Referring copiously to the GCNet HR Policy Manual, the Labour Act and the Constitution, the NLC Appointed Panel noted that there was significant overwhelming material evidence to order GCNet / SGS to respect the spirit and letter of its HR Policy duly agreed and signed by parties and operational consequently.

The matters before the Arbitration Panel was to determine whether or not the GCNet HR Policy Manual is binding on parties and whether or not there was any basis for variation or adjustment of the

redundancy as stated in the HR Policy Manual.

The Arbitration Panel insisted that the MoU signed by the parties was clearly in respect of implementation of the redundancy provisions in the HR Policy Manual relating to redundancy pay as the formula for the exercise and not a renegotiation. Therefore there was no basis for the attempt to vary or adjust the agreed formula duly signed and implemented before in past scenarios.

The Arbitration Panel pointed out that following a careful study and analysis of the documentation submitted by both parties, it was convinced that the HR Policy Manual was binding on all parties and therefore no need for renegotiation of redundancy pay

in case of redundancy drawing attention to the notice letter issued to affected staff making reference to the predetermined redundancy pay in the HR Policy Manual.

The Arbitration Panel further disagreed with GCNet that it lacked capacity to pay because it did not make provisions for redundancy per International Accounting Standards 37 Provisions Contingent Liabilities and also due to uncertainty of date of payment by Government of Ghana.

It stressed that GCNet was entitled to claim compensation from Government of Ghana which will include redundancy payment made to all staff indicating a letter dated April 16, 2020 from Government

requesting in paragraph 8 that ‘you are invited to submit claim if any, with justification, that you may be entitled to, following discontinuance of your service’.

It therefore upheld that there is an exisiting binding contract between GCNet and each of its employees through the HR Policy Manual together with their respective Employment Contracts which is binding on all parties and therefore should be applied in full.

The NLC Arbitration Panel therefore awarded that each employee declared redundant

by GCNet be paid in accordance with Article 1901 (f ) of the GCNet HR Policy Manual without any adjustment or variation and that the effective date for redundancy is August 31, 2020.

Vodafone CEO charges KNUST graduating class to be digitally literate

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he Chief Executive Officer (CEO) of Vodafone Ghana, Mrs. Patricia Obo-Nai, has charged Kwame Nkrumah University of Science and Technology (KNUST) Graduating Class of 2020 to build their capacity in digital skills as they enter the world of work.

According to her, this will make them remain relevant to their employers during and beyond the COVID-19 pandemic as human dependence on technologies is increasing significantly.

“Digital Literacy is not computer literacy. Computer literacy is knowing how to use the computer while digital literacy is being able to use digital tools and apps to carry out task and run businesses. This is no longer a choice as employers are already using these tools or will soon adopt the use of these tools to enhance business delivery. We at Vodafone have been exploring many other collaborative tools to improve ways of working for the entire organisation; not just

Mrs. Patricia Obo-Nai , CEO, Vodafone Ghana

referring to the engineers but also the finance, HR and legal”.

Delivering a speech at the KNUST 54th congregation virtual ceremony, Mrs. Patricia Obo-Nai noted that it was very important for the graduating student to be digitally literate as many employers are rapidly adopting digital tools to work from home due to COVID-19 safety protocols.

“You are graduating in an unprecedented time where most organizations have employed new normal ways of working that

has compounded with the rapid adoption of advanced technology.

To be able to thrive during these challenging times, one needs to be digitally literate”, Mrs. OboNai said.

She further advised the graduating students who wished to be entrepreneurs to use innovation to expand their businesses.

“History has shown that the greatest innovations in science, transportation, technology and other fields are born during crisis.

If you want to be entrepreneur, adopt at least one form of technology that will help you in marketing products, contacting customers, managing stocks, producing and delivering goods,” she said.

She added “Note that you are a class of change makers. Try new things and never let the fear of failure paralyses you into inaction. Learning should not stop just because you graduated, adopt technology. Good luck as you enter the world of work.

Congratulations once again”.

Patricia Obo-Nai is a Ghanaian female engineer, the first female to become Chief Executive Officer of Vodafone Ghana. She obtained a bachelor’s degree from the Kwame Nkrumah University of Science of Technology. Over the years, she has engaged the University through strategic partnerships to inspire the younger generation especially women to take up Science, Technology, Engineering and Mathematics (STEM) careers.

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FRIDAY SEPTEMBER 25, 2020

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Markets

FRIDAY SEPTEMBER 25, 2020

WEEKLY FINANCIAL MARKET UPDATES: For the week ending 11/09/2020 WEEKLY INTERBANK FOREIGN EXCHANGE RATES Currency Year Week Week Open Open Close USDGHS 5.5337 5.6941 5.6967 GBPGHS 7.3164 7.5160 7.2818 EURGHS 6.2114 6.7125 6.7437 GHSXOF 105.61 97.72 98.17

GHANA CEDI INDEX Year Open Week Open 501.5071

523.6134

Change % 0.05% -3.12% 0.47% 0.46%

20.200

2.95% -0.47% 8.57% -7.04%

Week Close

Change

YTD

521.1730

-2.4404

3.92%

TREASURY SECURITIES RATES (PRIMARY MARKET) Security Current Previous Change Coupon % Coupon % 91 Day Bill 14.022 14.017 0.005 182 Day Bill 14.088 14.106 -0.018 364 Day Bill 16.913 16.913 0.000 2yr Fixed Note 18.250 18.250 0.000 3yr Fixed Bond 18.850 18.850 0.000 5yr Fixed Bond 19.250 19.250 0.000 6yr Fixed Bond 19.500 19.500 0.000 7yr Fixed Bond 20.000 20.000 0.000 10yr Fixed Bond 19.800 19.800 0.000 20yr Fixed Bond

YTD

20.200

0.000

Year Open Rates 14.67 15.17 17.83 19.50 19.50 16.50 21.00 16.25 17.50 20.20

LOCAL BENCHMARKS BOG – Policy Rate

14.50%

Inflation August (2020)

10.5%

Fiscal Deficit target (2020) GDP Growth Target (2020)

11.40% 0.90%

Inflation Target (2020) GDP Growth Q2 (2020)

11.1% 3.2%

EQUITY TURNOVER Day Monday Tuesday Wednesday Thursday Friday Total

Volume 38,493 79,893 78,528 66,210 10,197 273,321

Value GH¢ 25,912.84 103,889.45 128,798.06 68,379.30 20,688.49 347,668.14

Gainers 0 0 2 0 1 3

WEEK END PRICE GAINERS AND LOSERS Ticker Open GH¢ Close GH¢ Gain GH¢ CAL 0.64 0.68 0.04 GCB 3.60 3.70 0.10 EGH 6.78 6.85 0.07 SCB 15.00 13.53 -1.47 BOPP 2.25 2.11 -0.14

Losers 0 1 0 1 0 2

GSE-CI 1840.07 1821.21 1825.74 1825.28 1827.80

% Change w/w 6.25% 2.78% 1.03% -9.80% -6.22%

COMMODITIES (PRICES FOR THE WEEK ENDING 11/09/2020) Commodities Year Week Week Change Open Open Close (w/w) Oil Brent Crude 66.00 42.66 39.83 -2.83 (USD/bbl) Gold (USD/t oz) 1,523.10 1,933.94 1,940.55 6.61 Cocoa (USD/MT) 2,540.00 2,595.00 2,548.00 -47.00 Coffee (USD/lb) 129.70 134.00 132.45 -1.55 Sugar (USD/lb) 13.42 11.93 12.60 0.67 Rice (USD/CWT) 13.29 12.04 12.12 0.08

YTD -39.65% 27.41% 0.31% 2.12% -6.11% -8.80%

GLOBAL MARKETS (INDICES FOR THE WEEK ENDING 11/09/2020) Index Week Close Week Open Change %Change S &P 500 3,340.97 3,426.96 -85.99 -2.51% Nasdaq 10,853.54 11,313.13 -459.59 -4.06% NYSE Composite London FTSE 100 Bloomberg EU 500 JSE Africa All Share GSE Composite

12,773.04 6,032.09 243.13 56,087.84 1,827.80

12,917.15 5,799.08 241.73 53,878.95 1,840.07

-144.11 233.01 1.40 2,208.89 -12.27

-1.12% 4.02% 0.58% 4.10% -0.67%

Analyst(s): Ruth Atobrah | Emmanuel Ayim-Ahiably: NDK Capital Research | research@ndkcapital.com | www.ndkcapital.com | 0302 218 423 This is published solely for informational purposes. All expressions of opinion are subject to change without notice. The information is obtained from internal and external sources which NDK Capital Limited considers reliable but has not independently verified such information and does not guarantee that it is accurate or complete.

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FRIDAY SEPTEMBER 25, 2020

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Markets

FRIDAY SEPTEMBER 25, 2020

WEEKLY FINANCIAL MARKET UPDATES: For the week ending 11/09/2020 CURRENCY, COMMODITY, AND EQUITY MARKETS UPDATE CURRENCY UPDATE At the end of the week, the composite gain value of the Ghana cedi pushed the cedi Index down by 2.44 points to close at 521.17 points, at a 3.92% YTD loss.

LOCAL BUSINESS NEWS GHS3.56 billion cash released to settle remaining customers of collapsed Microfinance firms, others Government has released GHS3.56 billion in cash to fully settle depositor claims of 347 defunct Microfinance companies, 23 Savings and Loans firms and Finance Houses that were being settled with bonds. The money will be ready for the depositors from Wednesday, September 16, 2020, according to a statement from the Receiver of these defunct firms.

The Cedi strengthened for a second straight week against its major trading counterparts, as value appreciations against the Pound Sterling (3.12%) was enough to counter a 0.05% and 0.47% depreciation against the US dollar and “Notice is hereby given that with effect from Wednesday 16 September 2020, Euro respectively. affected depositors may contact any branch of Consolidated Bank Ghana Ltd (“CBG”) the paying bank to access their newly created Cash accounts which The Cedi closed the week, trading at a midrate of USDGHS 5.6967 to the US were originally designated as Commercial Paper (Bond) accounts at the bank,” dollar, GBPGHS 7.2818 to the British Pound and EURGHS 6.7437 to the Euro. the statement from the Receiver announced. read more COMMODITIES MARKET UPDATE The price of Gold gained on the back of a weaker US dollar at the end of the week. The yellow metal closed the week at USD 1,940.55 after gaining USD 6.61 from the previous week’s price at a year-to-date return of 27.41%.

Brent price decreased at the end of the week under review, fueled by stalling demand and inventory buildup. Brent decreased by USD 2.83 from the previous week’s price to close at USD 39.83/bbl at the end of the trading activity. This pushed the YTD loss to 39.65%.

Cocoa recorded a USD 47 drop in price to end the week at USD 2,548/mt.

EQUITY MARKET Enthusiasm in the Ghanaian equity market cooled off after a subtle trading week, as the bourse records a decline in overall trading activity.

GRA optimistic of meeting GHS42.7 billion target despite missing half-year target Acting Commissioner General of the Ghana Revenue Authority, GRA, Amishaddai Owusu Amoah, has revealed it is implementing effective and efficient strategies and systems in order to exceed the revised tax revenue target set by government in the 2020 mid-year budget. This comes after it missed its half-year target by 6.9%.

It will be recalled that the government revised downwards the tax revenue target from GHS 47.2 to GHS 42.7 billion in the 2020 mid-year budget, due the impact of COVID-19. Speaking at a press briefing in Accra, Rev. Amishaddai Owusu Amoah, said that the overall target of more than GHS42 billion will be achieved, despite the outbreak of the Coronavirus pandemic. read more Ghana’s economy records first contraction in 37 years Provisional figures released by the Ghana Statistical Service, GSS, show that for the first time in 37 years the Ghanaian economy contracted by 3.2%.

A total of 273,321 shares valued at GHS 347,668 exchanged hands compared According to the same data, the country’s second quarter Gross Domestic to 9.6mln shares valued at GHS 7.7mln last week, indicating a 95% drop in Product (GDP), that is the value of goods and services produced from April to value traded.

June, increased to GHS85.7 billion cedis, when compared to the GHS 84.3 billion cedis of value recorded for the same period in 2019.

The year-to-date market index ended the week lower as the benchmark index dipped by 0.67%, due to value losses recorded in the shares of Speaking to the media at a press briefing, Government Statistician, Prof.

Standard Chartered Bank and Benso Oil Palm Plantation. The benchmark Samuel Kobina Annim attributed the fall to some restrictions on activities in index closed the week at 1827.80 points at a 19.02% year-to-date loss. the economy, which came to a standstill during the partial lockdown period. read more FanMilk Ghana (MTNGH) was the most traded stock, accounting for 37% of the total volume traded at the end of the week.

INTERNATIONAL NEWS At the close of the week’s trading, there were 5 movements in prices and 35 Fed holds rates steady near zero and indicates it will stay there for years stocks remained unchanged in prices.

The Federal Reserve kept its pledge to keep interest rates anchored near zero and promised to keep rates there until inflation rises consistently.

As the central bank concluded its two-day policy meeting Wednesday, it said short-term rates would remain targeted at 0% - 0.25%. Officials also changed their economic forecasts to reflect a smaller decline in GDP and a lower unemployment rate in 2020.

Projections from individual members also indicated that rates could stay anchored near zero through 2023. All but four members indicated they see zero rates through then. This was the first time the committee forecast its outlook for 2023. read more Source: Bloomberg, Reuters, CNBC, Citi business news, Doobia, BOG, CSD.

Analyst(s): Ruth Atobrah | Emmanuel Ayim-Ahiably: NDK Capital Research | research@ndkcapital.com | www.ndkcapital.com | 0302 218 423 This is published solely for informational purposes. All expressions of opinion are subject to change without notice. The information is obtained from internal and external sources which NDK Capital Limited considers reliable but has not independently verified such information and does not guarantee that it is accurate or complete.

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FRIDAY SEPTEMBER 25, 2020