Business24 Newspaper 28th October, 2020

THEBUSINESS24ONLINE.NET

1

WEDNESDAY OCTOBER 28, 2020

WEDNESDAY OCTOBER 28, 2020

NO. B24 / 119 | NEWS FOR BUSINESS LEADERS

IMF refutes Ghana’s ‘new’ HIPC status rumours

Data-driven digital banking the way to go -KPMG report

By Patrick Paintsil p_paintsil@hotmail.com

A

new KPMG report says banks can only survive in the highly digitised era if their product offerings are designed in a way that meets the preference of millennials.

The report titled: “Heightened customer expectation in the new normal and beyond,” said the future of customer experience will be insight-led, digitallyenabled and would require customer-centric culture as well as compelling value propositions.

Cont’d on page 3

MoMo penetration in rural communities low – Survey

By Joshua Worlasi Amlanu macjosh1922@gmail.com

Albert Touna Mama, Resident Representative, International Monetary Fund

By Nii Annerquaye Abbey annerquaye@gmail.com

T

he Resident Representative of the International Monetary Fund (IMF) Albert Touna Mama has stated that media reports stating that Ghana has been classified as a Highly

Indebted Poor Country (HIPC) by the Fund are deceptive.

Mr. Touna Mama in a statement issued Tuesday, October 27, said that Ghana which completed the HIPC initiative 16 years ago, is not eligible to apply for the programme.

“The HIPC Initiative

ECONOMIC INDICATORS EXCHANGE RATE (INT. RATE)

Business24 Limited.

Copyright@2020 All Rights Reserved.

Tel: +233 030 296 5297 Editor@thebusiness24online.net

POLICY RATE

is essentially closed for countries that have already reached the Completion Point. As you may recall, Ghana successfully reached the Completion Point in July 2004.

NATURAL GAS $/MILLION BTUS

GHANA REFERENCE RATE

15.12%

GOLD $/TROY OUNCE

OVERALL FISCAL DEFICIT

11.4% OF GDP

AVERAGE PETROL & DIESEL PRICE:

0.9% GHC 5.13

Follow us online:

BRENT CRUDE $/BARREL

14.5%

PROJECTED GDP GROWTH RATE

Cont’d on page 3

Cont’d on page 2 INTERNATIONAL MARKET

USD$1 =GHC 5.7027

T

he penetration of mobile money services remains significantly lower in rural communities compared to urban settlements in the country, a new survey conducted by the National Communications Authority NCA and the Ghana Statistical Service (GSS) has revealed.

CORN $/BUSHEL COCOA $/METRIC TON COFFEE $/POUND:

$41.26 2.622 1,922.57 329.50 $2,339.27 $109.65

facebook.com/business24gh twitter.com/business24gh linkedin.com/pg/business24gh instagram.com/business24gh

Did you know 65% of the world’s products and services are exchanged following a referral or recommendation?

Want to know more? Send us an email at info@bforbgh.com Call Us 0594 016 432 | www.bforb.com

@bforbghana

22

NEWS/EDITORIAL Editorial / News

MONDAY SEPTEMBER 14 2020 2020 WEDNESDAY OCTOBER 28,

EDITORIAL Editorial

Pay before boarding order needs a rethink

1

Wash your hands 2

Cover your cough 3

Digital banking is way to go The new directive for all passengers to pay for their COVID-19 test online before their arrival at Kotoka International 2020 KPMG Banking Airport has been meet with Industry Customer resentment by airlines and Experience Survey has passengers.

A

established the veritable At a time when passengersfact are still coming to terms with the that the future of banking is US$150 � GHC 900� mandatory digital. payment for COVID-19 test upon The at report suggests that arrival KIA, the new directive millennials remain the biggest has generated more debate. catch for banks that to Passengers travelling want to Ghana leverage to drive will from digitisation Tuesday, September 15 be required to make online growth and profitability. payments for the view mandatory It’s a long-held that C OV I D -1 9 te s t at Ko to k a the coronavirus crisis International Airport priorand to its long-lasting effects boarding of their flight,ona d i r e c t i v e firms b y F and r o n t the ier consumers, H e a l t h C a r e � t h e c o m p a ny government was obviously contracted to carry out the going to atgive antigen test KIA--toadditional all airlines impetus to revealed. the digitisation on Friday has trend B y and t h ethat n ewas w dconfirmed irective, “Passengers are required to show by the survey. proof paymentof to the airlines as a The offindings report relate to an earlier one on digital banking published by Business24 that showed rapid

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 uptake in digital products. by airlines as detrimental to the Cal Bank, one of the fastestrenewed efforts to stimulate growing indigenous banksthat in demand for air travel, given the decade, for instance, cashlast payments remains the predominant of payment has seen a 25mode percent rise in for mostofGhanaian travelers. users its mobile banking An airline operator who platform since the year began. wishes to remain anonymous, First National Bank, a told Business24 that “The cost is subsidiary Africa’s already too of highSouth and now this FirstRand Group, new policy is also going toalso be irecorded mplemen t e d .

T h e r e a re transaction growth hundreds of Ghanaian traders through digital channels of who travel to buy goods to retail higher than 90 percent in in the country. both March and April.

“Most of them don� t carry any The report also cards predicted electronic payment to be able inevitable: to pay online. should the thatThey banks will have the flexibility to pay cash digitise more transactions when they arrive.” and services as consumers The Consumer Protection become more digital-savvy, Agency � CPA� has also raised and willquestions also enhance critical about the the simplicity and convenience of relatively high cost of the those services.

Although the digitisation of the banking business has been

The CPA� s Chief Executive Officer, Kapito, said in asit largely Kofi pandemic-induced, much as the government to is empirical that it is awant trend curb imported cases of the that has come respiratory disease,toit stay must and not banks the willpassenger need tobutchannel burden charge what to cover their muchisofenough their investment to cost and not to profit from the that area of the business. passenger.

For banks to survive in such

around Africa you an“Look environment, the and KPMG’s see that what is paid in Ghana for report resolution, the test identified is the highest.

Why integrity, empathy, should that be� ”

expectations, He also raisedpersonalisation questions about why the and Noguchi and time effort Memorial as the six Institute for Medical Research of key pillars to drive seamless the University of Ghana, was not customer experience. made to handle the testing for a Digital fee banking is no reasonable but rather a contract given to a and foreign longer an option the company to do charge is nowwhat on Noguchi banks could adequately handle. to design measured dataBusiness24 wouldand likeservices to urge backed products a flexible approach that allows that will attract passengers to eitherthe pay public, online especially the millennials or cash on arrival. whose preference for online transactions are surging by the day.

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

IMF refutes Ghana’s ‘new’ HIPC status rumours that the desired outcomes are achieved and the economy brought back on track.”

Continued from scover Mr. Awuah� remarks were

Wear a mask Brought to you by

Visit thebusiess24online.com/ contacts to see a full list of Biz24 leaders and newsroom contacts.

Your newspaper subscription - along with the support of businesses who advertise in theBUSINESS24 and on theBUSINESS24online.com - make an investment in the Journalism that is essential to keep business community in Ghana well-informed. We value your support and loyalty, and we are committed to serving you Conatct us

Email: hello@thebusiness24online.net Newsroom: 030 296 5315 news@thebusiness24online.net Advertising Adverting / Sales: +233 030 296 5297 24 212 2742

reinforced by majority of the top The list of countries that have bank executives who responded qualified to the HIPC Initiative to the survey. The respondents since inception in 1996 regularlyto advised the Bank ofis Ghana updated our website and must increaseon stakeholder consultation not be interpreted as a new in order to propose “HIPC more list”.

Any policies. such interpretation is beneficial flawed maysaid, be deceptive,” This,and they will help the Fund’s Resident Rep added. estimate the timelines and extent While the Bretton to which the policies Woods of the institution its 2020 endregulator updated will remain available. year S o m forecast e r e s p ofor n d Ghana’s e n t s s idebtmply to-GDP to 76.7 thought ratio that there was percent, the need for Touna detailedMama guidelines fromthat the Mr. explained government and Bank of Ghana the update has not triggered on decision the implement of any or actionation by the measures put in place to curb the Washington-based lender. impact of the pandemic.

“We would like to take this In their view, clear guidance opportunity to encourage you to was missing, and though this seek clarification before giving could b s h a rinvolving e d d u rthe ing credence toe rumor stakeholder consultation, they IMF in Ghana. We reserve the could not fully embed the new right to issue a public statement policies in operational strategy to make such clarifications without a detailed documented as needed,” Mr. Touna Mama directive. concluded.

Post-pandemic banking Record deficit When asked by the audit firm The Fund’s revision of s about how recent the pandemic� its forecast on some of the key

outbreak had transformed their team structures to the new way of operations, the bank chiefs working in order to maximise responded that the immediate efficiencies of digital banking, response was to enforce remote and ensure less-paper operations working while realigning workers� and requirements for social roles. distancing. In the long run, these While the majority, 69 percent, measures may result in possible of respondents indicated that layoffs for some whose jobs remote working will become a become automated,” the report permanent option going forward, said.

Commenting on the findings of there was general consensus that the new norm will ultimately lead the survey, which was on the to the shedding of workers whose theme “The new normal� banks� response to COVID-19”, PwC� s jobs have become automated.

Ken Ofori-Atta, Finance Minister “ M o s t b a n k s i n t e n d t o Country Senior Partner, Vish macroeconomic indicators sees in his mid-year budget presented permanently incorporate remote Ashiagbor, cautioned that for the country’s endto in July, revised country’s workers that the survive the 2020 digital working as an fiscal optiondeficit available 2020 at 16.4on percent of GDP thisof fiscal p ro g deficit re s s i o projection n , t hey from h ave 4.7to staff based their roles.

12.5� year, largest in that the country’s 11.4 percent to upgradeto their skills of to GDP remain banksthe confirmed they have percent history. the fiscal impact of relevant. already begun and will continue accommodate The record deficit projection the pandemic. to realign the job roles and work comes on the back of the The Fund’s bigger projection, devastating effect of the which was contained in its coronavirus pandemic, which October 2020 Fiscal Monitor caused a huge shortfall in publication, appears to take into government’s revenues amidst account the expenses incurred bigger-than-expected spending by government in cleaning up in a frantic effort to contain the the financial and energy sectors spread of the virus.

– costs which government has The extra expenditure includes consistently excluded from its government’s provision of fiscal deficit calculation.

ADVERTISE WITH US free electricity and water for The projection is not only TEL: +233 024 212 2742 Ghanaians to cope with the the largest in Ghana’s history, it disruption caused by the virus, as also means the country will see www.thebusiness24online.net well as loans to enterprises. the biggest fiscal deficit in subFinance Minister Ken Ofori-Atta, Saharan Africa.

3

WEDNESDAY OCTOBER 28, 2020

Data-driven digital banking the way to go -- KPMG report Continued from cover “Banks must deploy crosscutting customer strategies that are born out of data analytics about customers as an essential tool for growth.

Data is the new oil and digital is the icing on the cake,” Robert Dzato, KPMG’s Financial Services Strategy Lead, said in his presentation on the report.

The 2020 KPMG Banking Industry Customer Experience Survey also showed customer’s drift from banks’ branch usage to digital channels and internet banking.

It also identified resolution, integrity, empathy, expectations, personalisation and time and effort as the six key pillars to drive seamless customer experience by the banks.

According to the report, millennials remain the biggest catch for banks that want to

leverage digitisation to drive growth and profitability.

Deputy Chief Executive Officer of the Ghana Association of Bankers (GAB) John Awuah, commenting on the report said banks were ready for the new era of banking with most of them ticking the right boxes of remote banking long before COVID-19 pandemic struck.

The next phase, he noted, will be investing in systems that will enable banks to mine and analyse data to inform decisions on customer satisfaction for growth.

“Banks invested in digitisation prior to Covid-19 but failure to market those investments slowed its adoption; fortunately, the pandemic has hastened the uptake of digital products,” he said.

To Mr. Awuah, customers have moved from being loyal to brands to becoming loyal to experience they receive and for that reason

KPMG’s Financial Services Strategy Lead Robert Dzato says banks must pay attention to customer demographics so as to design products that meet the insatiable needs of the digital era

banks will need to pay attention to the experience journey of the people they serve.

But in doing so, he warned that, banks must not trade employee satisfaction for customer experience since the success of the experience offerings will depend on their internal staff, especially the front liners.

Chief Executive Officer of the Chartered Institute of Bankers (CIB), Charles Ofori-Acquah, in

his remarks encouraged banks to forge strong partnerships with fintechs to offer the right mix of experience to their customers.

“Open banking is here with us and banks must cooperate with fintechs on this agenda; they are not competition,” he emphasised.

Mr. Ofori-Acquah added: “There is also responsible banking; profit must go with purpose and that can be achieved with customercentered banking.”

MoMo penetration in rural communities low – Survey Continued from cover The report titled: ‘Household Survey on Information Communications Technology (ICT) in Ghana’, indicates that out of 5,946 households surveyed at the national level, 40.8 percent said that they had never used mobile money services with the majority of them being rural dwellers.

A release issued by the NCA explained that the survey is intended to provide a reliable database at the household level to meet the increasing demand for data on ICT indicators as well as contribute to policy and data-driven decision making to promote the development of the ICT industry in Ghana.

According to the survey, about 63.2 percent of individuals

aged 5 years and older in urban localities own a mobile phone whilst 44.8 percent of those in rural localities own a mobile phone.

In terms of households in Ghana with access to internet service, only 16.8 percent of the sample responded in the affirmative.

Comparatively, access to the internet in urban areas was 20 percent, higher

than that of rural localities at 12.8 percent.

The survey which was conducted in June 2019, measured Ghana’s ICT development based on ICT access, usage, skills and digital divide focusing on ICT indicators that are consistent with the standards used by the International Telecommunications Union (ITU) in computing the ICT Development Index (IDI).

The coverage of the survey focused on individual ownership and usage of mobile phones, SIM cards and computers, internet access and usage, mobile money, bundling, household ownership and usage of ICT products and services.

The authority said that the baseline study will afford government, regulators and other stakeholders an overview of current trends and potential changes to anticipate in the ICT space going forward.

4

WEDNESDAY OCTOBER 28, 2020

5

News

WEDNESDAY OCTOBER 28, 2020

Gov’t, BoG to team up for cheaper mortgages – Ofori-Atta

By Joshua Worlasi Amlanu macjosh1922@gmail.com

F

inance Minister Ken OforiAtta says government will work with the Bank of Ghana to introduced specialpriced mortgages as part of efforts to bridge the housing deficit.

This arrangement, the Minister explained, will enable the government to create cheaper 15 to 40-year mortgages which affords citizens earning lower salaries as well as those in the informal sector to become homeowners.

“We will provide more sustainable financing agreements using diverse instruments to stimulate the [real estate] sector. The next Akufo-Addo led government will from 2021 prioritize housing as the biggest economic activity,” he asserted.

“We have done the year of roads, now we will leave a legacy of houses and hospitals for our people,” he added.

Mr. Ofori-Atta made this known at the commissioning of 204 housing units at Community 22,

Ken Ofori-Atta, Finance Minister

under the National Mortgage and Housing Finance Initiative.

The housing deficit Over the years, the country has suffered a wide housing deficit, especially in the urban and peri urban areas. The country is said to have a cumulative housing deficit which exceeds two million housing units, despite an annual supply of about 40,000 housing units.

With this, the country is unable

to meet the annual demand of some 70,000 homes each year.

Real estate industry players have pointed out the lack of adequate long-term funding, high cost of capital and high nonperforming mortgage loans being a challenge to home ownership in the country.

Eager to fix the demand–side challenges of home ownership, government in 2018 launched the National Mortgage and Housing Finance Initiative, with the aim of stimulating the local currency

mortgage market.

The National Housing and Mortgage Fund (NHMF) was set up to pilot two schemes – the National Mortgage Scheme (NMS) and the Affordable Housing REIT’s (rent-to- own) scheme.

The Fund is now working with players in the housing market, that is, home buyers, developers and banks, to address the issues hindering homeownership and create an enabling environment for a thriving housing market The Affordable Housing REITs is promoting the rent-to-own scheme with only monthly rent payments and, after a period, the occupant has the option to own it.

According to government, the rent-to-own scheme will eliminate the two-year rent advance system and also give low income workers the opportunity to rent and eventually own homes, with the focus on apartments and innercity rehabilitation.

Government also intends to use this framework, the Affordable Housing REITs, to revive the affordable housing concept and complete many of the abandoned government housing projects across the country.

Big oil firms turning to renewables -- IES

By Benson AFFUL affulbenson@gmail.com

E

nergy policy think tank Institute for Energy Security (IES) says big oil companies are beginning to focus on renewables which yields them attractive returns on investment.

“Today big oil companies are investing heavily in renewable technologies and projects because that is where the cash is drifting,” the IES said on emerging trends in the global oil and gas industry.

Despite the growth in

renewables, the IES said the socalled ‘big oil’, a term to classify the global oil giants, only spent 1 percent of its combined budget on green energy schemes in 2018.

Nevertheless, it said things have changed, saying of the six super-majors – BP, Shell, Total, Chevron, Exxon and Eni – many of them have invested billions of U.S. dollars into clean energy projects.

The IES analysis of revised strategies of the super-majors amid Covid-19 showed that the big oil companies are simply transforming themselves into

energy firms, with wind and solar taking an increasingly important role in their current strategies, to hedge against hardening investor sentiment towards carbon emissions.

“They are progressively positioning themselves for the proclaimed energy transition – essentially attempting to figure out how the best presently available cash cow in the world can be substituted for the benefit of their own sustainable future,” the analysts said.

The institute said former British Petroleum Company (BP) which rebranded to Beyond Petroleum (BP) in 2001, was the first oil major to commit significant capital in excess of US$8 billion to renewable projects, such as wind and solar.

“The rebranding to Beyond Petroleum was to signify BP’s shift towards other energy sources, beyond petroleum,” it said.

The institute said in early August 2020, BP announced a mammoth strategy to transform

the company into an integrated energy company (IEC) with plans to increase low-carbon investment to US$5 billion (10fold) per year, and build out a 50 gigawatts (GW) renewable power capacity by 2030, while shrinking oil and gas output by 40 percent compared with 2019.

It said Royal Dutch Shell, another integrated oil company (IOC), with a market capitalisation of a near US$100 billion and a dividend yield of more than 5 percent (even in the face of Covid-19), is well prepared for the shift to renewables to drive significant shareholder rewards.

“The Anglo-Dutch firm’s 2016 “New Energies Strategy” covered several areas including electricity, wind and solar, electric vehicle (EV) charging, and initiatives to encourage the adoption of hydrogen fuel cell EVs. The company’s investment target for green energy projects was set between US$4 billion and US$6 billion for the period from 2016 until the end of 2020,”

6

WEDNESDAY OCTOBER 28, 2020

7

News

WEDNESDAY OCTOBER 28, 2020

MTN partners Folklore Board to digitise Ghana’s cultural heritage

M

TN Ghana has signed a Memorandum of Understanding (MoU) with the National Folklore Board (NFB) that allows MTN Ghana to digitie and host the Ghanaian Heritage on the MTN Ayoba App.

The MoU, will amongst other things, facilitate the distribution of Ghana’s cultural products as well as intellectual content among the youth and the global society.

Eric Nsarkoh, Sales and

Distribution Executive of MTN Ghana, who signed the MoU on behalf of MTN Ghana said the partnership presents a unique opportunity for the country and its teeming youth to document and monetise their creativity and MTN Ghana is excited to be the facilitator for such an initiative.

“At MTN Ghana, we approach our business as a community partnership. That said, if the youth want to access heritage and cultural content and we are in a position to facilitate that as a telecommunication network, we take pride in doing so.”

The acting Director of National Folklore Board, Nana Adjoa Adobea Asante, on her part, said the signing of the MoU is the beginning of a great relationship between MTN Ghana and the National Folklore Board “One of the key things that we need to do was to ensure that we have an inventory of our folklore and what better ways

82 shortlisted for 2nd Ghana Cocoa Awards

F

rom a total of 155 entries received for the 2020 edition of the annual Ghana Cocoa Awards, 82 nominees have been shortlisted for the 2nd Networking and Awards Gala Night on 14th November 2020 at the Kempinski Hotel Gold Coast City, Accra Ghana.

The eminent Advisory and Awarding Board, chaired by Professor Emmanuel Ohene Afoakwa, is presently assessing the finalist entries to deliver the ultimate winners for all categories.

The winners will be announced exclusively at the Gala Night, which commences at 7pm prompt.

The Ghana Cocoa Awards secretariat hereby announces for the information of the general public that 82 award nominees have been shortlisted for the 2nd Ghana Cocoa Awards, which comes off Saturday 14 November 2020 at Kempinski Hotel Gold Coast City, Accra Ghana.

The finalists are drawn from a total of 155 entries filed by individuals, groups and organisations operating within the Ghana cocoa industry.

The Awards are made up of 30 competitive categories including Agro Input, Ecotourism, Research, Production, Internal Marketing, Cocoa Financing, Processing, Artisanal Value Addition, Innovation, Journalism, Sustainability and Leadership.

A number of individuals and organisations will also be accorded

Special Recognition in leadership and COVID19 Humanitarian efforts.

This year, two distinguished private sector actors qualified with very strong bids for the coveted Cocoa Personality of the Year honour currently held by the Chief Executive of Ghana Cocoa Board, Honourable Joseph Boahen Aidoo.

The second annual Networking and Awards Gala Night of Ghana Cocoa Awards (GCA) will be chaired by former Member of the Council of State and Presidential Adviser, His Majesty Ehunabobrim Prah Agyensaim VI, King of Owirenkyi Traditional Area (Assin

Kushea) in the Central Region.

The Chief Executive Officer of Ghana Investment Promotion Centre, Yofi Grant, is Guest Speaker.

The Special Guest of Honour for this year’s event dubbed the COVID19 Resilience Edition is the Chief Executive of Ghana Cocoa Board, Joseph Boahen Aidoo.

Ghana Cocoa Awards 2020 is on theme: “The Africa Continental Free Trade Area (AfCFTA) – Prospects and Opportunities for Ghana’s Cocoa.”

GCA is an independent industry awards scheme designed to spotlight and celebrate innovation,

to have an inventory which is digitally accessible to all. So, a partnership with MTN is a step in the right direction and it will help us as a government institution to fulfil our mandate and the target that has been set for us by the government.”

Already the pioneers of the Heritage App, which promotes the culture and traditions of Ghana, MTN is hoping to use the partnership with the National Folklore Board to take the purpose of the App a step further by hosting it on the Ayoba platform which is accessible in other operating countries in Africa and the Middle East.

Following the signing of the MoU, information from the National Folklore Board will be migrated to the Ayoba App. From there, the second phase will see a more active collaboration between the two partners in order to create new content while the final phase looks at monetisation. achievement and excellence, while offering an unparalleled platform for networking in the Ghana cocoa value chain.

Ghana Cocoa Awards is a concept of VC Media and supported by ECOM Ghana and AMP Logistics Ghana Limited.

According to the organisers, the initiative is aimed at the hard working and dedication of the Ghanaian cocoa farmer working in concert with the sector regulator – Ghana Cocoa Board – and industry that delivers the peerless worldacclaimed premium quality Ghana Cocoa, hence this initiative to recognise and honour outstanding achievements.

8

WEDNESDAY OCTOBER 28, 2020

www.surflinegh.com

WEAR YOUR FACEMASK ALWAYS surfline ...it’s about time

9

Feature

WEDNESDAY OCTOBER 28, 2020

Five steps African gov’ts should take to keep food systems intact when the next pandemic hits

By Joseph Opoku Gakpo

C

OVID-19 has hit world economies hard, and the agricultural sector is no exception. Restrictions imposed to prevent the spread of the global pandemic have made it more difficult for farmers to access inputs, like fertilizers and crop protection products, and sell their produce., resulting in hardships for farmers and consumers alike.

Between 83 million and 132 million people “may go hungry in 2020 as a result of the economic recession triggered by the pandemic,” according to the State of Food Security and Nutrition in the World report published by the Food and Agricultural Organization (FAO) and other United Nations (UN) agencies. Some 690 million people already are estimated to be hungry across the globe and are “unable to meet their food requirements.”

The report observes that “the hungry are most numerous in Asia but expanding fastest in Africa.” Although Africa has just 16 percent of the world’s population according to the UN, it is home to about 27 percent of the world’s hungry people.

Even more Africans are likely to suffer during a pandemic because of the continent’s institutionally weak agricultural infrastructure and over-dependence on foreign support as far as the agriculture value chain is concerned.

It doesn’t have to be that way. Here I propose five practical measures that African governments can take to ensure food resilience and security when the next pandemic hits.

Boost consumption of local foods.

The main way to keep Africa’s food systems intact is through a conscious effort to encourage local production and consumption of food. Although Africa has more than 60 percent

of the globe’s arable uncultivated land, it spends about US$50 billion annually on food imports, the majority of which could be produced on the continent.

Almost half of my country’s (Ghana) annual US$1.5 billion food import bill goes toward the purchase of rice, even though rice is produced in all 16 regions of the country. Consumers claim that imported rice has a better aroma. Imported chicken is actually cheaper to buy.

Meanwhile, local producers have no market for these products.

It’s untenable that the continent continues to rely on imported rice, poultry and other foods when we have the capacity to produce them in abundance.

Governments should introduce barriers (including higher taxes and targeted bans) that will encourage reliance on local foods instead of imports so there will be no cause for alarm during pandemics, when all countries are looking inwards.

Invest vigorously in boosting farm productivity.

African governments should invest heavily in measure to improve agricultural productivity. It’s sad that African farms produce an average of 1.5 tonnes per hectare of corn, while farmers in the United States produce more than 10 tonnes per hectare. Changing this dismal statistic will require conscious investments in agricultural inputs, including fertilizers, chemicals for pest and disease control and more importantly, improved and certified seeds.

One technology that can make a lot of difference is genetically modified (GM) seeds.

The increased adoption of GM seeds on the continent can be a gamechanger in boosting productivity. Currently, GM crops are grown in only three African countries, but GM technology has played a significant role in boosting production across the world. In some cases, African

countries that have restricted production of GM seeds locally turn around and import GM crops to feed the population.

If it’s okay to import the final product, what is the sense in holding onto regulatory barriers that make it impossible to grow GM crops locally?

Over the last 23 years of growing GM crops, the technology has been responsible for the additional global production of 278 million tonnes of soybeans, 498 million tonnes of corn and 32.6 million tonnes of cotton lint, among other crops — without additional use of land. That’s remarkable by all standards. This technology can be developed locally to meet regional needs and deal with challenges unique to the continent.

Before the next COVID-19 hits, let’s be aware that a boost in productivity is crucial to ensuring that something will be available for consumption. It is morally imperative for African leaders to prioritize the food security of their people over the interest of special interest groups and allow GM crops to be grown on the continent.

Expand local production of seeds, fertilizers and machinery.

African governments need to make their countries less reliant on imported inputs. For example, in the year 2016, Africa imported about 4.3 million nutrient tons of fertilizer, up from 3.1 million in 2011. This is despite the reality that Africa has an abundance of the mineral reserves needed to produce nitrogen, phosphorus and potash, which are the three major plant macronutrients.

African governments must create the enabling environment to ensure more seed companies and other agricultural input firms are established to supply smallholder farmers, instead of relying on imported inputs.

Tax breaks, low interest loans and reduced tariffs on

amenities should be given to entrepreneurs who are ready to set up agricultural input firms so they can take charge of providing most of the input that African farmers need. This will keep local food security intact in times of a pandemic and create more jobs for young people all over the continent. African governments should also support farmers with subsidies to ensure they can afford the inputs that will make their farming activities more efficient.

Increase food processing and storage facilities.

Going forward, African governments need to encourage industries that will process crops locally to extend their shelf life, produce food and make it easier to transport and sell these products. In 2011, the FAO estimated that about 37 percent of food produced in sub-Saharan Africa is lost between production and consumption. That figure has not changed much over the years and the only way to close the gap is through increased processing.

Capacity should be built for such processing companies to spring up.

Once this is done, farmers will be able to continue selling their produce to local processing firms even if pandemics close country borders. Why should West Africa be exporting virtually all of its cocoa to Europe, America and China for processing, creating a situation where even the local confectionary market on the continent is dominated by chocolates produced in the Netherlands and United Kingdom? Local facilities can be made available to smallholder farmers to process some of these cash crops for local sales. This will ensure that farmers earn even more for their cocoa, as value-added processed products fetch more money than raw commodities.

CONTINUED ON PAGE 17

10

WEDNESDAY OCTOBER 28, 2020

11

News

WEDNESDAY OCTOBER 28, 2020

StanChart celebrates customers with 100% waiver on all account to wallet transactions

S

tandard Chartered Bank Ghana Limited has announced a 100 percent waiver on account to wallet transaction fees for its customers from 26th to 30th October 2020.

This comes on the back of the customer service week which is commemorated globally from October 5-9, and the Bank’s bid to dedicate the whole month of October to celebrating its customers nationwide.

From October 26 to 30, clients will transfer money directly from their account to their mobile money wallet or a third-party wallet, without incurring the costs that are normally associated with account to wallet transactions.

Speaking on the rollout of this client initiative, Yvonne Fosua Gyebi, Head, Retail Banking, Standard Chartered Bank Ghana said, “To celebrate all Standard

Chartered Bank clients who are very integral to our being Here for Good, we are pleased to waive 100% off fees on all Mobile Money transfers for the rest of the week

in October 2020.

Our clients are indeed our heartbeat and this is our way of saying thank you for continuously choosing Standard Chartered as

your preferred bank”.

Standard Chartered Bank has continued to roll out innovative ways to make banking for its clients relevant, experiential, simple and rewarding. SC Mobile App and Straight2Bank platforms are part of the bank’s digitally innovate products to fulfill the bank’s determination to provide the best digital banking lifestyle for clients.

Furthermore, this will not be the first time the Bank is waiving fees for its clients. In May during the lockdown effected as a result of COVID-19, fees for mobile money transfers up to GHS100 were waived to a flat rate of 0.75%, while interbank Instant Pay and Automated Clearing House transfers of up to 100%, initiated on SC Mobile and Straight2Bank platforms of the Bank were completely waived.

Journalists trained to effectively use statistics to shape media practitioners on the need to pick an angle and only focus on economic policy issues relate stories with relevant policies. developing a story in that area.

T

he Ghana Statistical Service (GSS) in partnership with the United Nations Development Programme (UNDP) has trained over 50 journalists across the country to effectively interpret data and communicate research findings in furtherance of economic and policy issues.

The training was organised in two zones with the southern zone’s taking place in Dodowa in the Greater Accra region and the northern zone, Tamale.

The sessions took the participants through data literacy with a focus on basic statistical methods and terminologies, and hands-on practical demonstration and exercises on communicating statistics and how to use data to shape economic and strategic policies.

Speaking at the training, Prof.

Samuel Kobina Annim, the Government Statistician urged the Journalists to avoid inaccuracies in their reportage.

“Be circumspect in translating statistics and always put statistics in the right context to prevent misuse of data,” emphasised Prof.

Annim.

In addition, Francis Bright Mensah, Head of National Accounts at the GSS, cautioned the Journalists on the use of adjectives to describe data and urged them to carefully use words like majority and significant, among others, as

these he said can have different meanings in statistical context.

Taking the participants through the session on communicating statistics, Ms. Praise Nutakor, Head of Communications at UNDP Ghana urged the media to reduce the use of statistical terminologies when developing stories with data and emphasized the importance of limiting the use of statistical figures in a story.

“Don’t overburden the audience with too much statistics but always choose meaningful data and an angle for your story to prevent information overload’, Ms. Nutakor advised.

The UNDP Economics Advisor for Ghana and the Gambia, Frederick Mugisha advised the

He stressed that Journalists should try and define data needs, read more, ask the right questions, invest a little more time in doing stories and connect with the right sources in order to get the right answers.

“Do not just report on findings of statistical reports. Always relate your stories to relevant policies, seek to understand the implications of the data on economic and strategic policies, and hold duty bearers accountable,” stated Dr Mugisha.

The participants expressed satisfaction and thanked UNDP and GSS for the knowledge-packed training.

“I learnt not to fear a lot of statistical figures but rather

This way, the story becomes straight forward and will not be loaded with several statistics that can be confusing. I thank UNDP and GSS for the training,” stated Ms Shawana Yussif, Reporter at Filla FM, Tamale.

According to Fred Smith, Joy News Editor, “the training was great.

It afforded me the opportunity to master the numbers. As an editor, this will help me to be able to break down statistical stories to the understanding of everyone without losing the meaning. Great opportunity also to refresh some things I knew already.”

The participants in both trainings, were drawn from print, online, and broadcast media from the 16 regions of the country.

12

WEDNESDAY OCTOBER 28, 2020

13

Maritime

WEDNESDAY OCTOBER 28, 2020

Adam Imoru Ayarna inducted into prestigious Nobles 100 Club

V

ice President of the Shipowners and Agents Association of Ghana (SOAAG), Adam Imoru Ayarna has been inducted into the prestigious Nobles Hall of Integrity (Nobles 100 Club)—the prestigious list of exemplary Africans shaping the course of leadership across the sub-region.

Noble Ayarna was honoured last Friday at this year’s West Africa Nobles Conference and Awards held at the Chartered Institute of Bankers in Accra for his meritorious contribution to the country’s shipping and logistics value chain including his involvement in key policy decision in the industry since 2012.

The SOAAG boss made the enviable list for his insistent commitment to transparent and exemplary leadership and corporate governance three years after his admission into the Forum in 2017.

He has an impeccable career life with strong background in shipping and logistics, business administration and sales management as well as international trade.

Noble Ayarna’s knowledge spreads across leadership

assessment and development, shipping agency, organisational skills, dynamic decision-making, project management, corporate governance, shipping and customs processes.

He was the originator of Container Freight Stations (CFS) in Ghana, establishing the Maersk Logistics CFS which was the first in Ghana in 1998/9, prior to the springing up of many inland container depots.

He has also been the visiting lecturer on Shipping for the Ghana

Customs Proficiency Certification Courses since 2000.

Adam has inspired and vehemently trained a lot of people, both young and old, who now hold key positions in both maritime and other industries.

He currently serves on the boards of a number of professional organisations including Jonmoore International, Baj Freight and Logistics, and Ghana Ports and Harbours Authority.

He is also the chairman and a shareholder of Cadesmee

International Co. Ltd and board member of the Evangelical Lutheran Schools of Ghana.

The West Africa Nobles Forum is a group of eminent West Africans who identify deserving business leaders in the sub-region each year and present them with awards.

Nominations made by the Governing Council are guided by the criteria of corporate governance, integrity and exemplary leadership qualities displayed by business leaders.

New IMO proposal on greenhouse gas reductions triggers criticism

L

ast week, the International Maritime Organization’s (IMO) working group presented a draft text containing further measures to cut ship emissions. The text has sparked criticism by various NGOs and maritime organisations and has been described as unambitious and vague.

The remote meeting, which saw the participation of a number of governments around the world, was held from 19 to 23 October 2020.

Specifically, the proposed amendments to the MARPOL convention would require ships to combine a technical and an operational approach to reduce their carbon intensity.

This is said to be in line with the ambition of the 2018-adopted initial IMO GHG Strategy, which aims to reduce carbon intensity of international shipping by 40percent by 2030, compared to 2008.

A proposal had been made to the meeting in an attempt to fuse the technical Energy Efficiency Existing Ship Index (EEXI)

measure with the operational Carbon Intensity Indicator (CII) measure.

These are in reality Energy Efficiency Design Index (EEDI) limits to existing ships and a rating mechanism to mandate improvements to the operational carbon efficiency of ships.

While the EEXI reduction rates are established and listed in the draft MARPOL amendments to be discussed at next month’s

Marine Environment Protection Committee (MEPC) meeting, the CII rating mechanism still lacks important details such as how should carbon efficiency be measured, and which reduction factors should be used to calculate annual limits for CII for each ship, BIMCO, the world’s largest shipowners association, explained.

“The IMO initial strategy’s ambition to improve carbon

efficiency of the fleet by 40% by 2030 compared to 2008 is silent on how carbon efficiency shall be measured.

Thus the 2030 ambition may, or may not, result in lower total emissions from the fleet – it all depends on the metric chosen and resulting change in operational behaviour of ships,” BIMCO said. www.worldmaritimenews.com

14

WEDNESDAY OCTOBER 28, 2020

15

Feature

WEDNESDAY OCTOBER 28, 2020

Securing the right financing

T

he Ghanaian business environment is dominated

by Small and MediumSized Enterprises (SMEs) representing 85% of businesses and contributing 70% of Ghana’s Gross Domestic Product (GDP) according to the Association of Ghana Industries (AGI). However, this very important business segment continues to face a myriad of challenges including access to finance.

Capital, which is a critical determinant of sustainability and growth of these businesses is most often inaccessible to most SMEs. According to the IFCMcKinsey MSME database, 55% 68% of SMEs in emerging markets cannot access the full amount of funding they need.

A key contributor to the challenge of accessing the right type of finance is the type of financing partner being engaged.

Regardless of how well your business is set up, speaking to the wrong capital provider, given the stage of the business will thwart the fundraising efforts.

The question then to be asked is, “which capital provider should you speak to at the current stage of your business?�

A business can be at various stages; from pre-seed up to mature companies. The right funding mix differs at each stage of the business.

The pre-seed stage is where the business is just an idea. At this stage, the idea owner is still refining the idea and conducting the surveys or experiments needed to validate the idea. This stage is generally characterized

by the highest risk of failure - the largest proportion of businesses die at this stage.

Given the characteristics of businesses at this stage, an investment decision is largely based on trusting the capability of the idea owner once the investor is aligned with the prospects of the idea.

Thus, the right investment at this stage is largely driven by your resources and that of your close networks. Other sources of funding at this stage include grants and other pre-seed support programs. Approaching a commercial bank should not be an option at this stage.

As the idea becomes a registered business, the owner can now approach business angels for funding. Business angels are a major source of funding that helps fill the gap that lies between the start-up and seed capital stage. A study published in the Journal of Business Venturing by Cheryl Mitteness, Richard Sudek, and Melissa Cardon suggests that business angels rely upon the personality of the entrepreneur when making investment decisions.

Thus, entrepreneurs seeking to impress a business angel should do some research about them ahead of a meeting to improve their chances of securing the funding required. Angel investors are usually concerned with the scalability of the idea to achieve revenues that make an exit attractive.

As the business moves from pre-revenue to early postrevenue stage, the chances of

success increase and this attracts venture capital funding. Venture capital (VC) or seed funds provide early-stage funding to businesses typically after the minimum viable product (MVP) has been developed.

The development of an MVP provides VC funds with the sufficient information required to make their investment decision. VC funds are also very much interested in how scalable the business is, the cash burn rate, and the time required (investment horizon) to reach attractive revenues that will facilitate a profitable exit of their investment.

As the business grows, the risk of failure reduces and the business can also generate sufficient historical data to attract all other forms of funding. At this stage, the credibility of historical financials is very important to funding partners as that forms a key element in their funding assessment.

Other things they consider include the quality of the people, processes, and systems, the prospects of the industry amongst others. The funding partners at this stage also provide relatively higher funding amounts which usually aligns with the high funding needs of businesses at this stage.

Other factors to consider in choosing the right funding partner include the type of business and the non-financial needs of the business. For instance, if your business is involved in agriculture, you are more likely to secure the required funding

from an agri-dedicated fund such as the Agri-Business Capital Fund (ABC Fund) than a fund that invests across multiple sectors.

If this same business requires additional technical assistance to put the funds to efficient use, then a funding partner that provides technical assistance such as the ABC Fund is more preferred.

Finding the right partner to secure funding given the current stage of your business does not only improve your chances of getting funded but also presents you with the right terms and conditions required for your business success which includes technical support, longer and/or flexible payment terms.

Emmanuel Egyam is a private capital investment professional with several years of experience in commercial banking, private equity and private debt investments.

He is currently an investment associate supporting direct debt investments in Agri-businesses and cooperatives across anglophone Africa under the Agri-Business Capital Fund (ABC Fund). He can be reached via email on abcfund@ injaroinvestments.com.

16

WEDNESDAY OCTOBER 28, 2020

17

Mining

WEDNESDAY OCTOBER 28, 2020

DRDGOLD reports 45% quarter-onquarter increase in gold production

D

RDGOLD has reported a 45% quarter-onquarter increase in gold production to 1 514 kg, due primarily to a 27% increase in tonnage throughput to 7 260 000 t and a 15% increase in yield to 0.209g/t.

Gold sold increased by 60% to 1 522 kg.

As a result, cash operating costs per kilogram of gold sold decreased by 10% to R489 750/kg.

Cash operating costs per ton of material processed increased by 2% to R104/t.

All-in sustaining costs per kilogram and all-in costs per kilogram were R588 239/kg (R579 180/kg) and R613 206/kg (R597

371/kg) respectively, the increases due mainly to a rise in sustaining capital expenditure.

Adjusted EBITDA increased

by 110% to R770.4 million, due primarily to the increase in gold sold and a 6% increase in the average Rand gold price received

to R1 029 893/kg.

Source: miningreview

CONTINUED FROM PAGE 9

Five steps African gov’ts should take to keep food systems intact when the next pandemic hits Build the capacity of African farmers

Kodal making strides in Mali, Côte d’Ivoire

M

ineral exploration and development company Kodal Minerals says it is making progress with its mining licence application for the Bougouni lithium project, in southern Mali, as well as with regard to a memorandum of understanding (MoU) entered into with Sinohydro and its gold exploration activities.

The Mali Transition Government is now fully active and progress on the mining licence application has restarted.

“The mining licence application continues and Kodal can confirm that all government documents have been updated to reflect the changes to the Mali Transition Government Ministry and the operation of the Constitution and the Charter of Transition.

“The documents are pending signing by the new Minister, which will then allow the company to receive notification of

requirement to pay for the mining licence,” Kodal CEO Bernard Aylward comments.

Further, the company has announced the drawdown of $750 000 as the second and final advance of the $1.5-million unsecured convertible loan agreement with Riverfort Global Opportunities and YA II PN. “Completing this final advance of the loan agreement allows Kodal to continue its exploration and development programmes for the Bougouni lithium project including planning of further engineering design and metallurgical testwork to optimise the process plant design.

“This mining project development work will be completed in conjunction with the review and assessment of the project by Sinohydro under the MoU,” says Aylward.

Source:miningweekly

Some 27 percent of the world’s illiterate people live in subSaharan Africa, the UN estimates, and the majority of them are poor, rural farmers. Meanwhile, agriculture as we have known it is not the same today as it was a generation ago. Information and communication technologies (ICT), artificial intelligence and robotics are changing the way agriculture is done from the hoe and cutlass activity that we have known. It’s unfair that a lawyer must necessarily be educated and hold a certificate, but it’s okay for a food producer to have little or no education.

The ordinary African farmer should be able— like other farmers across the globe — to sit behind a computer and irrigate his or her crops, apply pesticides in the right quantities and adequately calculate how much money a field is likely to earn at the end of the planting season.

Efficient agricultural production is now more of a brain activity than a physical one.

The African farmer must not be left behind. Skills training, tutorials on using information technology (IT) in agricultural and investments in state-of-the-

art farm equipment are urgently needed on the continent. A highly knowledgeable and capacitybuilt farmer will be in a better position to predict market trends and respond to the uncertainties of a pandemic.

Golden opportunity The COVID-19 pandemic is giving all of us in Africa a golden opportunity to use our own local resources and skills to turn our agricultural production around and reduce hunger on the continent. Africa is a powerhouse that the world can look to for food in times of trouble. But achieving that status will require careful planning, conscious investments, hard work and serious commitment from political leaders.

Now is the time to do the things that will make it possible for us to produce food more efficiently and increase our export capacity while creating jobs for the millions of unemployed African youth. Let us not miss this opportunity.

By Joseph Opoku Gakpo Head of Agriculture Desk, Joy News Cornell Alliance for Science Fellow

18

WEDNESDAY OCTOBER 28, 2020

19

Feature

WEDNESDAY OCTOBER 28, 2020

Trump’s last stand for apartheid America

By Jeffrey Sachs

T

he ferocity of the 2020 presidential election in the United States is not about Donald Trump per se, but about what he represents: the racist structures of power that have persisted in America for centuries, though sometimes in mutated form.

The long history of America’s state-sponsored racism will draw to an end in the coming generation, which is why Trump is so strikingly reactionary in his attempts to prolong it. Yet the damage that Trump’s brand of white nationalism could still cause to the US and the world if he wins a second term makes the election easily the most important in modern American history.

Racism was hard-wired into the US from the founding of the American colonies, with their economies built on the enslavement of Africans and the slaughter and dispossession of Native Americans. Slavery became so deeply enmeshed in American society that only a bloody civil war ended it, in contrast to most other countries, where the African slave trade and slave holding ended peacefully.

When the US Civil War ended, a brief period of African-American emancipation during the Reconstruction era (1865-76) gave way to a renewed system of racist repression so encompassing and systematic that it was, in effect, an American apartheid system.

The legal racism of Jim Crow in the US South is well known, but the repression and segregation in the North and West, including segregated housing, flagrant job discrimination, poor or no schooling, and systemic failures of justice, were similarly noxious.

In his brilliant and eloquent book The Color of Law, Richard Rothstein examines how federal, state, and local governments, in collaboration with vigilante white violence, created and perpetuated African-American

ghettos across the country, while underwriting and promoting the spread of segregated, allwhite suburbs. Much overtly racist legislation was eventually eliminated by Congress or overturned by the federal courts by the end of the 1960s.

Yet racism continued, reflected in police brutality, the mass incarceration of black young people starting in the 1970s, ongoing suppression of black votes, and pervasive employment discrimination. And most of America’s segregated suburbs remained nearly all white.

The civil rights movement of the 1950s and 1960s produced deep and lasting changes. Yet it also fueled a political backlash among white conservatives, especially in the South and Midwest.

Working-class and evangelical whites who had long been part of Franklin D. Roosevelt’s New Deal coalition switched their allegiance to the Republican Party, which promised to resist further desegregation and to support policies promoted by social conservatives.

This “Southern Strategy” helped to put Richard Nixon in the White House in 1968, and then Ronald Reagan in 1980. The same white, evangelical rural and suburban base helped to elect George H.W. Bush, George W. Bush, and Trump.

Today, however, younger Americans are far more supportive of racial diversity – and are far more racially diverse themselves. They are also better educated. Because college campuses bring together Americans from a wide variety of backgrounds, they foster a lived environment of diversity, thereby nurturing greater racial tolerance.

According to a recent Pew Research Center opinion survey, young voters aged 18-29 are breaking 59% for Joe Biden to 29% for Trump, who also garners little support among collegeeducated voters. Voters with a

Bachelor’s degree favor Biden over Trump by a margin of 57% to 37%. For voters with advanced degrees, Biden’s margin is even wider, 68% to 28%. Trump’s base is concentrated among older, white, and lesser-educated Protestants, many of whom moved to segregated suburbs decades ago precisely to avoid integration.

In 2016, the swing voters were white working-class voters in the Midwest who had lost jobs to automation and trade. Many had previously voted Democratic.

Trump wooed them by promising to stop immigrants and minorities competing for their jobs and housing. He promised to restore vast numbers of manufacturing jobs by getting tough on China.

That message sold.

This year, however, swing voters are likely to break for Biden. Trump’s disdain for public health has allowed COVID-19 to run amok. Together with the weak economy, the lack of jobs returning from China, the overall loss of manufacturing employment since the start of Trump’s presidency, and Biden’s convincing proposals to create millions of jobs by investing in clean and green infrastructure, Trump’s message no longer resonates with many of these voters.

With US demographics and cultural attitudes changing, older, white pro-segregation voters may recognize that this election is their last stand.

Trump’s remaining stratagem is voter suppression, including dark threats of vigilante violence if he is defeated. He has repeatedly declined to commit to a peaceful transfer of power, and has ominously called on white supremacists to “stand back and stand by” pending the electoral results.

As his electoral defeat has become increasingly likely, Trump has ratcheted up his rhetoric to fever pitch. The chaos of an artificially contested vote count is Trump’s main shot

at retaining power. The most heartening words from Trump during this whole campaign was his recent musing that if he loses, “Maybe I’ll have to leave the country.” More likely, after a lifetime of tax dodging and financial fraud, justice will catch up with him.

If Trump somehow holds on to power, the domestic and global consequences of an openly repressive racist US regime could be deadly. At home, unleashed and unhinged white supremacist groups could spur a descent into open violence. On the global stage, Trump’s evangelical base has a frenzied desire for a cold war with China, one that plays to these voters’ xenophobia, antiChinese racism, and historical ignorance.

All of this means that the coming weeks will be fraught with peril. America and the world will not be safe until Trump is gone.

About the author

Jeffrey D. Sachs, Professor of Sustainable Development and Professor of Health Policy and Management at Columbia University, is Director of Columbia’s Center for Sustainable Development and the UN Sustainable Development Solutions Network. He has served as Special Adviser to three UN Secretaries-General.

His books include The End of Poverty, Common Wealth, The Age of Sustainable Development, Building the New American Economy, and most recently, A New Foreign Policy: Beyond American Exceptionalism.

20

WEDNESDAY OCTOBER 28, 2020

21

World

WEDNESDAY OCTOBER 28, 2020

HSBC says it could charge for current accounts

E

urope’s biggest bank, HSBC, has said it could start charging for “basic banking services” in some countries after it reported a 35% fall in quarterly profits.

It said it was considering charging for products such as current accounts, which are free to UK customers.

The bank said it was losing money on a “large number” of such accounts.

A spokesman later told the BBC it was committed to continuing to provide free “basic bank accounts” in the UK .

But they added: “We always keep under review the pricing for our standard current accounts and associated services.”

Very few banks charge for standard bank accounts, but experts say this could change if the UK falls into negative interest rates due to the pandemic.

That would see the Bank of England take interest rates below zero to help boost consumer spending and revive the economy.

HSBC reported a 35% fall in pre-tax profit during the third quarter of the year to $3.1bn (£2.3bn), while revenues fell 11%.

Along with other banks, it has seen earnings hit amid an environment of rock bottom interest rates, and so is now considering other ways of

boosting revenues.

The lender also said it would accelerate its restructuring plan, cutting costs further than previously suggested.

But HSBC, which is in the midst of cutting 35,000 jobs, did not say whether more jobs would now go. It said it would provide details on the plan with its fullyear results next February.

‘Promising results’ Despite the tough environment, HSBC chief executive Noel Quinn said there were some bright spots.

“These were promising results against a backdrop of the

continuing impacts of Covid-19 on the global economy,” he said.

“I’m pleased with the significantly lower credit losses in the quarter, and we are moving at pace to adapt our business model to a protracted low interest rate environment.”

HSBC had set aside between $8bn and $13bn for bad loans as it expects more people and businesses to default on their repayments because of the Covid-19 pandemic.

However, it now says its expenses are likely to be at the lower end of that range.

In September, HSBC’s share price fell to its lowest level since 1995 amid allegations that the

bank had allowed fraudsters to transfer millions of dollars around the world, even after learning of the scam.

The bank has also faced recent criticism from the US Secretary of State Mike Pompeo for supporting China’s controversial security legislation in Hong Kong.

Even before the Covid-19 pandemic hit, HSBC was restructuring with a plan to cut $4.5bn (£3.6bn) of costs by 2022.

At its peak, the bank employed more than 300,000 people, but since the global financial crisis, the bank has trimmed its operations significantly.

BBC

Jack Ma’s Ant Group set for record $34bn market debut

C

hinese financial technology giant Ant Group looks set to make the world’s largest stock market debut.

Ant, backed by Jack Ma, billionaire founder of e-commerce platform Alibaba, is to sell shares worth about $34.4bn (£26.5bn) on the Shanghai and Hong Kong stock markets.

Advisers to Ant set the share price on Monday amid reports of very strong demand from major investors.

The previous largest debut was Saudi Aramco’s $29.4bn float last December.

Ant, an online payments business, is only selling about 11% of its shares. But the pricing values the whole business at about $313bn.

Mr Ma’s Ant shares are reportedly worth about $17bn, taking his net worth to close to $80bn and confirming him as China’s richest man.

Ant runs Alipay, the dominant online payment system in China, where cash, cheques and credit cards have long been eclipsed by e-payment devices and apps.

In fact, Alipay says the total

volume of payments on its platforms in China for the year ending in June was a massive $17.6tn.

According to Alibaba’s most recent annual report, Alipay has 1.3 billion users. Most are in China, with the rest coming from its nine e-wallet partners elsewhere in Asia.

Ant also offers wealth management, insurance and money transfer services.

The company is expected to make its dual listing in Shanghai and Hong Kong next week, underlining the latter exchange’s growing importance as a financing hub.

The Trump administration has

threatened to limit Chinese firms’ access to US capital markets, a move that is part of the longrunning trade row between Washington and Beijing. In response, China called on its flagship tech giants to list on domestic stock markets.

Chinese tech firms, including NetEase and JD.Com, have already raised billions by selling their shares via the Hong Kong stock market.

According to the Bloomberg news agency, Mr Ma told a conference in China on Saturday that the flotation would be of huge significance for Shanghai and Hong Kong.

“This was the first time such a

big listing, the largest in human history, was priced outside New York City,” he told the Bund Summit.

“We wouldn’t have dared to think about it five years, or even three years ago,” said Mr Ma. Major investors to have signed up to the share offering ahead of flotation, scheduled for 5 November, include Singapore state investor Temasek Holding and Abu Dhabi sovereign wealth funds GIC and Abu Dhabi Investment Authority.

Analysts said the flotation offered investors a chance to secure a slice of Asia’s fastgrowing tech sector.

“Digital commerce and infrastructure platforms in Asia provide an unprecedented opportunity for Asian and global investors to be part of the next wave of value creation in Asia,” said Varun Mittal, an emerging markets expert at consultancy EY, in Singapore.

“Earlier this year, India saw a rush of international investors keen to invest in infrastructure and platforms ecosystem, which is being replicated in the Chinese ecosystem now.”

22

WEDNESDAY OCTOBER 28, 2020

23

Markets

WEDNESDAY OCTOBER 28, 2020

CONTINUED ON PAGE 24

24

Markets

CONTINUED FROM PAGE 23

WEDNESDAY OCTOBER 28, 2020

25

WEDNESDAY OCTOBER 28, 2020

Why BforB? We are internationally recognised for creating an innovative networking environment where you can build quality relationships within influential business leaders.

Want to know more? Send us an email at info@bforbgh.com @bforbghana

Call Us 0594 016 432 www.bforb.com

26

WEDNESDAY OCTOBER 28, 2020