Business24 Newspaper 4th June, 2021

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FRIDAY JUNE 4, 2021

ADB wins 1D1F Financial Service Provider award

Mines chamber backs increased participation of women in mining

See page 5

See page 5

BUSINESS24.COM.GH

NO. B24 / 204 | NEWS FOR BUSINESS LEADERS

Eni investment in Sankofa hits US$6bn

By Benson Afful

MTN sets up US$25m fund to aid digital ecosystem dev’t

By Eugene Davis ugendavis@gmail.com

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he CEO of MTN Ghana, Selorm Adadevoh, has announced that the company has set up a US$25m fund to support the development of Ghana’s digital ecosystem.

Speaking at the launch of the company’s 25th anniversary celebrations in Accra, Mr. Adadevoh said:

affulbenson@gmail.com

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talian energy giant Eni, operator of the Offshore Cape Three Points (OCTP) oil and gas project, says it has invested US$6bn so far in the project, with a total estimated full life expenditure of US$10bn, making it the largest single investment in Ghana.

The OCTP project has reserves of 500m barrels of oil and 40bn cubic metres (270m barrels of oil equivalent) of Cont’d on page 2

MONDAY FRIDAYMAY JUNE 3,4, 2021 2021

Cont’d on page 3

Eni’s FPSO John Agyekum Kufuor at Sankofa, Offshore Cape Three Points (OCTP)

Daily minimum wage pegged at GH¢12.53

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he National Tripartite Committee (NTC) on Thursday announced that the National Daily Minimum Wage (NDMW) has been adjusted upwards to GH¢12.53 – a six percent increase in the 2011 figure of GH¢11.82.

The Committee also pegged the 2022 NDMW at GH¢13.53 which represents eight percent increase over the 2021 figure.

The increase was in line with the provisions of the Labour Act, 2003 (Act651) with the effective date for the implementation of the 2021 Cont’d on page 2

Mines chamber backs increased participation of women in mining

By Eugene Davis ugendavis@gmail.com

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he CEO of the Ghana Chamber of Mines, Sulemana Koney, has underscored the need for women participation in mining to be broad-based, Cont’d on page 5

Follow us online: facebook.com/business24gh twitter.com/business24gh linkedin.com/pg/business24gh instagram.com/business24gh

Cont’d on page 2

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Editorial / News

FRIDAY JUNE 4, 2021

Editorial

Collective action needed to revive travel sector

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ast year, when the first cases of the coronavirus made their way into the country, Ghana like many countries shut its borders to the entire world save a few emergency flights.

When that decision was taken, the safety of the country’s citizens was paramount and the government was determined to do just that.

However, the economic impact of the decision to close the country’s airspace, which lasted about six months, is beginning to show.

A Business24 analysis of air passenger traffic for last year showed a gloomy picture

highlighting the severity of the harm of the coronavirus pandemic to the nation’s aviation business.

Almost all the performance indicators showed a sharp fall with some seeing the heaviest decline in almost two decades.

In fact, the virus crisis has had a deafening effect on the aviation industry globally, and the Ghana situation sits well within the current trends across the globe.

In terms of the financial impact, the government lost more than 64 percent of its 2019 tax revenue to the crisis last year whilst the projected amount for this year is less than a quarter

of what was garnered two years ago.

With travel restrictions easing across the globe, we anticipate that it would reflect in the rapid reversal of this alarming situation.

This will only happen when industry players put their hands to the wheel to push the sector back to the path of growth.

Airlines, hospitality services providers, travel and tour agencies, tourism services providers and allied players will have to deploy proactive and workable initiatives to drive up travel and tourism interests.

We urge a more collaborative approach for this noble cause.

Eni investment in Sankofa hits US$6bn Continued from cover non-associated gas. The project produced its first oil in 2017, with overall cumulated oil production reaching 50m barrels as at April 2021.

Eni position on unitisation

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In April 2020, the government of Ghana directed Eni to execute a Unitisation and Unit Operating Agreement (UUOA) with respect to the Afina discovery in the West Cape Three Points (WCTP2) contract area and the Italian oil major’s Sankofa field in the OCTP contract area.

The directive followed previous engagements and analysis of the post-drill data by the Petroleum Commission (PC) and the Ghana National Petroleum Corporation (GNPC), which confirmed that the Afina discovery in the WCTP-2 and the Sankofa field in the OCTP contract areas were one and the same—that is to say, the Sankofa Cenomanian Reservoir extended into the WCTP-2 contract area.

According to Giuseppe Valenti, Eni Ghana Managing Director, Eni and its partner Vitol are working with the Ministry of Energy, Petroleum Commission, GNPC, and other partners to find a mutually acceptable solution to enable the country capitalise on the Afina discovery.

“In this discussion we leverage

Giuseppe Valenti

our expertise in unitisation, based on having negotiated and executed more than 130 unitisation and pre-unitisation agreements around the world (Australia, Algeria, Angola, USA, Croatia, Italy, Mozambique, Nigeria, Norway),” he said.

He said many unreliable and ungrounded data are circulating, which risk confusing the public, adding that Eni is trying to find out if there is a viable solution that could be beneficial to all parties.

He explained that Eni has recently been able to work on the data thanks to the intervention of the Ministry of Energy and delivered its analysis in the direction of finding a viable solution regarding the potential optimisation of the recovery of oil reserves.

“In principle, we are not opposed to unitisation, but this needs to follow an appropriate,

shared work programme and evaluation process to assess the elements listed above before taking decisions in the interest of all parties. This entails an appraisal programme of the Afina area, including (but not limited to) production and interference tests in order to understand the potential benefit that a unitisation of the Sankofa field and the Afina discovery could deliver. In any case, parties to a unitisation agreement have to contribute to the costs and liabilities deriving from the development and production of hydrocarbons, related facilities, and other expenses.”

He said in order to have a right to the hydrocarbons produced and to proceeds from the production, each party must first pay its share of the costs of producing hydrocarbons from the unitised field.

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Daily minimum wage pegged at GH¢12.53 Continued from cover NDMW being June 4, 2021, a release signed by the committee said.

The release was jointly signed by Mr Ignatius Baffour Awuah, Minister of Employment and Labour Relations, for Government, Mr Daniel Acheampong, President of the Ghana Employers’ Association, for Employers and Dr Antwi Yaw Baah, the Secretary-General of the Trades Union Congress, Ghana, for Organised Labour.

It said the NTC concluded negotiations on the determination of the National Daily Minimum Wage (NDMW) in respect of 2021 and 2022 at its meeting held on Thursday, June 3, 2021 in Accra.

The Committee said the effective date for the implementation of the 2022 NDMW shall be January 1, 2022.

It said in determining the new rates, the NTC took into account the impact of the Coronavirus (COVID-19) pandemic on the

national economy, cost of living, sustainability of businesses and desirability of attaining high level of employment.

The Committee said all establishments, institutions or organisations, whose Daily Minimum Wage was below the 2021 National Daily Minimum

Wage should adjust their wages accordingly with effect from 4th June, 2021.

It said any establishment, institution or organisation that flouted the new rate shall be sanctioned in accordance with the law.

“The NTC recommends

that the NDMW should be tax exempt,” it added and reiterated its commitment to strengthen social partnership, industrial peace and the improvement of incomes and productivity in both the public and private sectors of the economy.

MTN sets up US$25m fund to aid digital ecosystem dev’t Continued from cover “We are committing as part of our 25th anniversary a US$25m fund over three years to work with government, through the Ministry of Communications and Digitalisation, to support the development of Ghana’s digital ecosystem. One of the legacy projects we have already committed to is the building of an ICT hub in Ghana.”

According to him, the company will reposition its strategy from BRIGHT to Ambition 2025, which aims to build the largest and most

valuable platform business with a focus on Africa.

Ambition 2025, he said, is anchored on five pillars: Fintech Solutions, Digital/ayoba, Enterprise, Network as a Service, and an API Marketplace.

“In this strategy, we see exciting opportunities for mobile commerce, where fintech intersects with our ayoba business,” he added.

“We are hoping to aggregate APIs to accelerate the digital ecosystem expansion; for instance, a customer should never need to interact with

an agent to manage their MTN experience. All SMEs should be able to become digital without IT skills in-house by leveraging our platforms—and by so doing, they can pay taxes digitally through MoMo. We should be able to use QR codes for trotro or taxi payments; we must have the ability to pay tolls by scanning car number plates; we should be able to track criminals through digital safety cameras on our streets and from artificial intelligence; identify the national ID card details for a camera image; and lastly, we should be able to stamp

From left: Dr. Ishmael Yamson, MTN Ghana Board Chairman; Selorm Adadevoh, CEO; President Nana Akufo-Addo; and Ursula Owusu-Ekuful, Minister for Communications and Digitalisation

out MoMo fraud using a similar artificial intelligence identity tracking algorithm.”

This year, the CEO said, MTN is investing approximately US$150m in its network and IT systems to continue to connect the 15 percent of Ghanaians without connectivity and increase capacity and experience for those who already have the service.

The Minister for Communications and Digitalisation, Ursula OwusuEkuful, said government looks forward to continuous support from MTN in policy initiatives such as national roaming, SIM registration, rural telephony, and Girls in ICT. On the regulation of the industry, she stated that government has “taken a policy decision to strive for a lighter regulatory touch which will spur greater growth and innovation in this digital sector.”

She assured MTN of government’s commitment to provide favourable incentives and create an enabling environment to grow the fintech and digital ecosystem.

Board Chairman of MTN Ghana Dr. Ishmael Yamson indicated the company’s readiness to partner government in making Ghana a digital hub in Africa.

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News

FRIDAY JUNE 4, 2021

ADB wins 1D1F Financial Service Provider award

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gricultural Development Bank (ADB) has been awarded the One District, One Factory (1D1F) Financial Service Provider of the Year at the 2021 Ghana Manufacturing Awards (GMA), held at the Kempinski Hotel, Gold Coast City, in Accra.

The honour affirms the bank’s support to businesses under the government’s flagship industrialisation programme, which seeks to build or revamp a factory in each district in the country for sustainable job creation and also to take advantage of the African Continental Free Trade Area (AfCFTA) agreement.

Since the launch of the 1D1F initiative in 2017, the bank has supported about 20 companies with over GH¢100m in the areas of agro-processing, aquaculture, poultry, construction, and manufacturing.

The Managing Director of the bank, Dr. John Kofi Mensah, expressed his excitement about the award and said the bank was ready to support companies

with all the needed financial support, especially in the area of agribusiness.

“We are proud to be the winner of this award. We have been a key supporter of 1D1F since its inception, and this award goes to show that our efforts have been duly recognised. Being an agribusiness-focused bank, we take particular interest in the area of agribusiness since it is an area that goes beyond just job creation but also [ensures] food security.”

He added that the bank has a dedicated desk for the 1D1F programme, and all proposals are properly scrutinised to ensure the companies and the projects to be embarked on are sustainable and will create jobs for the youth.

The awards programme, which was on the theme “Leveraging on AfCFTA; the role of 1D1F”, saw 28 outstanding companies and individuals from different sectors awarded for resilience, transformative initiatives, and excellence.

Minister of Trade and Industry Alan John Kyerematen, in a speech

Managing Director of ADB Dr. John Kofi Mensah

read on his behalf as the guest of honour, stated that government’s comprehensive industrial transformation programme, initiated since 2017, is on course to making the country a leading manufacturing hub in Africa.

He said 232 1D1F factories in 154 districts are at various stages of implementation, which includes 64 existing companies and 162 new companies.

He urged manufacturers

and business people to take advantage of the various trade opportunities, including the AfCFTA, to maximise their gains and scale up production to create more jobs and boost economic growth in the country.

He added that government is determined to ensure that indigenous manufacturing companies take full advantage of the AfCFTA.

Mines chamber backs increased participation of women in mining Continued from cover insisting that much more has to be done to ensure increased representation of women in the industry.

Speaking at the virtual West African Mining and Power Expo event on the topic “Global Developments on Women in Mining”, he said: “If you look at the statistics, Africa seems to be doing quite well [with women’s participation in mining], but there is room for us to do better. We’re doing a lot of advocacy, and some companies are taking elements of this quite seriously.”

He added: “It is for me now to persuade my colleagues at the executive committee [level] so these initiatives will be more broad-based within the industry.

There is hope for improvement, and we commit to do much better going forward; but it has to be done through structures.”

Women’s participation in the mining sector remains low, speakers at the event said, noting

A woman working in an underground mine

that although the sector held opportunities for women, many usually fail to take advantage of job offerings and opportunities that come their way.

According to the Group Training and Development Coordinator at Golden Star Wassa Limited, Ms. Gifty Bilson, the authorities within the mining industry should consider introducing a mining scholarship for females.

The President of Women in

Mining (WIM) Ghana and Women in Mining (WIM) Africa, Mrs. Georgette Barnes Sakyi-Addo, said: “We are on the right path, but we need to push more. WIM groups are important; we have made inputs into several mining policies, and we can still do more.”

The Head of Legal at AngloGold Ashanti, Juliet Manteaw-Kutin, who moderated the session, encouraged women to take up

mining because “it is a good idea, a rewarding place and gives you a sense of achievement.”

Ms. Eunice Dzokpo, Unit Manager, Mine Survey, at Asanko Gold Ltd., stated that companies should develop policies targeted at girls at the tertiary level and senior high schools, with a plan to educate them in Science, Technology, Engineering, and Maths (STEM) in a bid to attract them in the long term into the mining industry.

The Head, Mining and Metals, Stanbic West Africa, Ms. Juliet Sheiddy Akamboe, said women in mining should strive to “make a difference wherever we find ourselves and make that commitment to add one extra woman to the various conversations at our various stakeholder engagements, so we can make the progress that we desire. It is not good enough to talk about it and move away; that inner commitment is what is needed to build trust between all stakeholders.”

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News

FRIDAY JUNE 4, 2021

Cocobod adopts new technologies to protect environment

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hana Cocoa Board (COCOBOD) has adopted the use of cocopeat and receptacles as new technologies for raising cocoa seedlings at nursery sites. The initiative is part of the board’s moves to streamline its core activities to align with best practices that protect and conserve the environment.

Cocopeat is 100 percent soilless organic medium produced from coconut husks with some trace elements which make it a good substitute for topsoil whereas the receptacles are plastic containers adopted to replace polybags often used in raising cocoa seedlings.

Commenting on when the new technologies would be rolled out, the Executive Director of the Seed Production Division (SPD) of COCOBOD, Rev. Dr. Emmanuel Ahia Clottey disclosed that 25 out of the 32 Seed Production Division Stations across the country had implemented the novelty for the 2020/21 crop year.

“For a start, the division plans to raise 15 percent of the 92 million seedlings target for the 2020/21 crop year using the cocopeat and the receptacles. This will be increased incrementally to enable us identify challenges with the use of the technologies and address them accordingly because it is the best way to go,” he indicated.

Explaining the rationale for the new technologies, Rev. Clottey said polybags, which are usually used for raising cocoa seedlings are not biodegradable and can, in the long run, reduce the quality of the eco-system. He added that the use of the receptacles in seedlings production will ensure environmental sustainability because they are re-usable and also cost effective.

Rev. Clottey further indicated that over-reliance on topsoil can result in sand winning and cause considerable harm to the environment and life, hence the need to shift from the practice.

The old system of raising cocoa seedlings at nursery sites Every year, SPD raises millions of cocoa seedlings for free distribution to farmers in the

country. The process involves the use of polybags and topsoil normally obtained from places such as treated and abandoned old refuse dump sites.

Although, there are always deliberate attempts by SPD to ensure that the polybags are properly dispose of after the seedlings had been transplanted, there are still some concerns on the environment because the bags are not easily decomposable. Again, collecting topsoil continuously is also not eco-friendly.

In most cases, the topsoil collected usually contains numerous debris like broken bottles, stones in addition to the presence of termites, bacteria, fungus and efforts at sieving and re-conditioning the medium physically and chemically before

use are time consuming, laborious and expensive.

Rev Clottey said modernisation of the division’s activities is a prerequisite for transforming operations and achieving maximum impact. He hinted that all nursery sites at SPD’s stations and those established on lands owned by COCOBOD now have permanent structures constructed with treated wood, galvanized poles and shade nets.

“We are unable to build such permanent structures at all places because some of the sites have not fully been acquired by COCOBD to enable us erect permanent shades which are durable and guarantee value for money,’ he noted.

Advantages of cocopeat and receptacles The two media are not only ecologically friendly but also provide good condition for the proper growth of the seedlings.

The cocopeat promotes high water retention; ensures good germination and fast seedling emergence.

The receptacles on the other hand have holes underneath which ensure good drainage and guarantee intact healthy roots formation.

Again, removing seedlings for transplanting is from receptacles is achieved with minimum disturbances to the young plant and these qualities are essential for high survival rate of seedlings.

BOST makes GH¢31 million profit in 2020

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dwin Provencal, Managing Director (MD), Bulk Oil Storage and Transportation (BOST), has disclosed that the company made a profit of GH¢31 million in the 2020 financial year.

He noted that the profit was attained in 2020 through the efforts and sacrifices of staff,

management and the board.

“Though we budgeted to make a loss of GHC86 million, we did not only get to zero, but we crossed zero and made GH¢31 million profit. This is your Company,” Mr Provencal, stated in a presentation in Accra, when he took his turn at the maiden weekly media engagement series

for State Owned Enterprises (SOEs) in Accra.

The programme, organised by the State Interests and Governance Authority (SIGA), is aimed at enabling the SOEs’ CEOs share success stories with their various stakeholders and the citizenry.

Mr Provencal said the strategy

was to enhance operational excellence and aggressively promote businesses.

“We think there is good opportunity for BOST. We think BOST can work and we know it can work because we’ve seen things turning around,” he said.

“The thing about government institutions is that when government institutions work very well, we create a private sector drive, because the private sector depends on the government.”

“So, we believe that BOST can be run like any world class organisation. It is possible. And so going forward the next four years, the focus is on operational excellence, holding people accountable and aggressively growing our business,” Mr Provencal said.

GNA

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News

FRIDAY JUNE 4, 2021

Mekagruppo commences Safe Ghana Road Week observation

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ekagruppo Foundation, a charity with special focus on advocacy and thought leadership to shape society, has outdoored Safe Ghana Road Week, an initiative inspired by the recent increase in road accidents in Ghana.

Safe Ghana Road week is an advocacy platform to deliver true revolution in transforming the streets of Ghana from danger prone zones to streets of liberation.

The week long observation will coincide with UN Global Road Safety Week which has been celebrated around the world since 2007. This project is a 3Phase Campaign starting from May2021 as launch phase and several activities planned for the other 2 quarters till end of December 2021.

The first phase (May-June) is geared towards creating awareness of the risk factors and dangerous behaviours that result in accidents, reducing road traffic death and injuries to the barest minimum and advocating

for comprehensive adherence of motorists to road safety laws.

MEKAGRUPPO is calling on civil societies, policy makers, media houses and personalities,

all and sundry involved in road safety campaigns to collaborate in ensuring that the #SAFEGHROADSWEEK becomes a household name imbibing in every Ghanaian the responsibility of keeping the next person safe

on the road.

This #SAFEGHROADSWEEK campaign is supported by Our media partners Crystal Clear Lens, Business Day, Business24. com.gh Woezortv, Economy Times & Mediastone.

3rd WOFAGRIC and Gold in the Soil Awards receives 131 nominations

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he third (3rd) edition of Women in Food and Agricultural Leadership Training Forum (WOFAGRIC) And Gold in The Soil Awards, powered

by Agrihouse Foundation, has received 131 nominations of deserving women farmers and agribusinesses.

The event is set to take place from the 23rd to the 24th of June 2021 at the Akayet Hotel, Bolgatanga in the Upper East Region, under the theme: “Women in Agric- Surviving,

Thriving and Making Waves Beyond the Pandemic.”

The event, primarily designed to empower women in the agricultural sector, also seeks to increase their participation in agribusiness and recognise exceptional performance of trailblazers who push the boundaries along the value chain.

It is further designed to bring together actors in the agric value chain such as farmers, aggregators, transporters, buyers, input dealers, suppliers,

agro companies and many others in a serene environment where knowledge, ideas and relevant skills will be shared to the benefit of the farmers and others in the agric value chain especially women.

Executive Director of Agrihouse Foundation, Alberta Nana Akyaa Akosa, has noted that the Foundation is excited with the balanced women Farmers and Agribusiness value chain representation, with the entries received so far, from women from the Upper East and West respectively.

“50% of the entries received, are from women farmers, farming between 10-65 acres of maize, yam, groundnut, soya beans, vegetables, Bambara beans, millet and sorghum. 32% of the women are largely into Processing, Packaging and marketing of Shea, Neem, Moringa, Boabab, Dawada, groundnut, oils, etc. 15% are into distribution and marketing of Input (seeds, fertilisers, etc) and about 3% of these women are into Tractor and Equipment operating and hiring,” she highlighted.

The Foundation has also noted that majority of the women farmers who submitted entries are between ages 25-65years,

“This for us is a positive signal.

It is great to know we have very young women in the Upper East and West Regions, who are taking Agric seriously and contributing to enhancing nutrition and changing livelihoods,” she revealed, adding that all the entries received are from women, who have been operating their businesses within a period of 2 to 40years.

Highlighting on the theme for this year’s event, “Surviving, Thriving and Making Waves beyond the Pandemic,” Ms. Akosa said, 2021 WOFAGRIC and Gold in the Soil Awards would explore ways to enhance women’s resilience and recovery from the effects of the pandemic.

The event will enable women in agribusiness develop, improve and sustain new agricultural practices, as well as develop their business within this pandemic era and beyond.

For her part, the Deputy Director – Development, of the Canadian Embassy, Ms. Stephanie Brunet, said, “The theme for this year’s event could not be more appropriate in view of the adverse effects of the COVID-19 pandemic on the agricultural value chains, particularly for women farmers.

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International

FRIDAY JUNE 4, 2021

EU fiscal rules to remain suspended for another year

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uropean Union governments can keep supporting their economies with huge fiscal stimulus after the bloc’s executive extended the suspension of deficit limit rules to help spur the recovery from Covid-19.

An escape clause in the socalled Stability and Growth Pact

was activated in March 2020 to allow countries to implement emergency measures.

The European Commission has this week extended the escape clause, stating that economic activity should have returned to pre-crisis levels before governments stop their interventions.

The recovery is “around the corner”, said Valdis Dombrovskis, executive vice-president of the Commission in charge of its work on the economy, but “the road ahead [is] still paved with unknowns”.

“We are encouraging member states to maintain supportive fiscal policies this year and next, preserving public investment and making the most of the funding from [the EU’s €672.5bn

recovery package] to boost growth,” he said.

“A sound mix of expenditure, focused on investments while keeping other expenses under control, will facilitate the return to more prudent positions in the medium term, which will be especially important for highdebt countries.”

The Stability and Growth Pact normally requires governments to run a budget deficit of less than 3% of GDP, and maintain public debt at less than 60%.

The Commission said it expects to deactivate the escape clause in 2023.

“We are confident that the worst is over,” Portguese finance minister João Leão told Lisbonbased news agency Lusa, saying he agreed with the decision.

“The recovery is already underway, but now we have to ensure that the policies to stimulate the economy are as complete as the emergency measures during the pandemic were,” he said.

The Commission this week announced its plan to issue about €80bn of bonds to fund EU recovery spending in its member states.

All 27 governments had to approve the Commission’s power to borrow up to €750bn, and by Monday they had all done so.

US tariffs loom over six countries in retaliation to digital services taxes

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he United States Trade Representative announced levies on goods from Austria, India, Italy, Spain, Turkey and the UK have been introduced but immediately suspended for six months.

This will allow ongoing OECDled tax reform talks more time to find a global agreement on how to tax internet businesses in territories where they make money but have no headquarters.

“The United States is focused on finding a multilateral solution to a range of key issues related to international taxation, including our concerns with digital services taxes,” said USTR Katherine Tai. “The United States remains committed to reaching a consensus on international tax issues through the OECD and G20 processes.”

Successive US administrations have considered digital services taxes discriminatory against US companies and are thus “inconsistent with the principles of international taxation”.

The Joe Biden administration has decided to introduce tariffs on imports from six countries in an ongoing row over whether unilateral taxes on giant digital companies are fair.

But unlike his predecessor Donald Trump, Biden publicly backs the international talks aimed at solving the problem.

Trump formally withdrew from the process in June 2020, but Biden rejoined it earlier this

year, giving the discussions new momentum after they missed their deadline at the end of last year.

The current president is pushing for a minimum global corporation tax rate of 15%,

but some, including the UK government, fear too much focus on that will detract from the issue of digital tax.

G7 finance ministers are due to meet this week to discuss the deal.

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Feature

FRIDAY JUNE 4, 2021

Digital skills for the modern century workplace

By Richard Kafui Amanfu

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he rapid growth of Internet access and connectivity has paved way for the development of a digital economy across the world. The World Economic Forum estimated in 2019 that 133 million new roles will be created by 2022 as a result of the new division of labour between humans, machines, and algorithms. However, there are major inequalities due to the lack of digital skills.

Digital skills are broadly defined as those needed to “use digital devices, communication applications, and networks to access and manage information,”– UNESCO. This covers a vast range and variety of skills, from basic through intermediate to advanced levels. They enable people to create and share digital content, communicate, and collaborate, and solve problems for effective and creative self-fulfillment in life, learning, work, and social activities at large.

Upskilling and reskilling yourself in key in-demand digital skills can level up your resume and reboot your prospects in a competitive job market. Areas such as web design, analytics, social media, and artificial intelligence, are designed to equip learners with essential digital skills for the modern century workplace and daily life.

As below, these are defined as the basic functional digital skills needed in a day-to-day professional and personal context, to make basic use of digital devices and online applications. They will be enough for many working in traditional workplaces which have adopted digital systems to

improve efficiency, security, and connectivity.

• Digital foundation skills– the fundamentals of being able to use digital technologies such as using a browser, connecting to the internet, and keeping passwords secure.

• C o m m u n i c a t i n g – sending emails securely, using attachments, and taking part on social media.

• Handling information and content–using search engines, being aware that not all online content is reliable, accessing content across devices.

• Transacting–setting up accounts to use or purchase goods/ services online, using different secure payment methods and the Automated Teller Machine (ATM), filling in online forms.

• Problem-solving–finding solutions to problems using frequently asked questions (FAQs)/tutorials/chat, presenting solutions through software, and improving productivity.

• Being safe and legal online–understanding best practices in data storage/sharing, updating and keeping passwords secure, and taking precautions against viruses.

Such basic digital skills can be developed from your desk by reading books and blogs, watch YouTube (learn how to do what), take a course and teach others what you have learned, and get analytical.

Whatever you would like to learn more about and whatever level you are already at, there will be a blog out there for you.

Blogs normally take between one and fifteen minutes to read so they will give you a bite-sized knowledge that is perfect while

you are taking a coffee break. By reading recently published blogs, you will get the most up-to-date information that is not always possible from a book.

There are also YouTube videos for everything, and it is not just a website–it is the world’s secondlargest search engine. If you find it hard to dedicate time to self-learning, then committing to a course–either online or classroom-based–might be what you need. Understanding the analytics behind digital marketing platforms (for example, websites, social media, and email) is the most important part but also the bit that many people do not master. Once you have understood the numbers, it will be easier to work out what affects them and how.

Digital skills are critical to earning income in the future economy as the formal and informal economies are digitizing.

According to Digital Skills Observatory, digital skills (e-skills) are among the most sought after by businesses. Also, in the growing digital sector, one will need to possess more advanced skills pertaining to specific areas of digital business. These include, but not limited to, areas such as data analytics, artificial intelligence, digital marketing, Internet of Things, cybersecurity.

If we are to meet the needs of tomorrow, where shall we look to find “who” is to be called upon to invest in this skills development, and “what” must be aided/facilitated? Whether acting as policy-making bodies or as institutions that provide educational/training services, the system of education, training, and employment must move towards

developing learning “programs” and “educational projects” that include modern tools and methodologies.

These tools and methodologies must be capable not only of transferring the technical knowledge beneficial to acquiring digital skills but also developing the soft skills in tangent with the digital world. Fostering public awareness of the active role that the citizenry can play in the knowledge society, alongside a workforce able to use digital skills in their respective sectors.

Hence, revamping training programs at all levels with digital in mind − whether secondary school or university or at a professional retraining or management training level − is a step that we cannot afford to put off any longer. We must raise the level of competence - upskilling and reskilling, starting out from adaptation of people’s skills visà-vis the skills required by the marketplace.

Digital skills are therefore important because they underpin so much of how modern work is conducted. For many modern professions, digital skills are simply essential skills, and in this fourth industrial revolution the need will only continue to increase, and a greater demand for those with advanced digital skills, as we see more drive towards automation and crosssystem data exchange.

Author: Richard Kafui Amanfu – (Director of Operations, Institute of ICT Professionals, Ghana) For comments, contact richard. amanfu@iipgh.org or Mobile: +233244357006

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Feature

FRIDAY JUNE 4, 2021

China’s three-child policy won’t help

By Nancy Qian

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n an effort to address rapid population aging, China has just announced that it will allow all families to have up to three children. The decision comes on the heels of widely publicized new data showing that the Chinese fertility rate in 2020 was only 1.3 per woman, which is similar to that of Japan (1.36 in 2019) and notably lower than that of the United States (1.7).

But a below-replacement fertility rate is only one part of China’s demographic problem. A second issue is the sheer size of its older population. Before 1971, Chinese family-planning policies were pro-natal, restricting access to contraceptives and familyplanning education. As a result, the country’s current or soon-tobe elderly population has grown particularly large: the size of the population aged 15-24 is only around 72% that of those aged 4554, compared to 79% in Japan and 100% in the US. This top-heavy demographic structure makes the problem of declining fertility even more acute, because new, younger workers are needed to replace those who will retire and

require support.

A third issue is urbanrural inequality. China’s rural population is generally prohibited from moving to urban areas by the country’s hukou system of residency permits. Rural residents thus have had fewer opportunities to access education and health care. In 2010-12, the urban enrollment rate was 100% for middle school, 63% for high school, and 54% for university; in rural areas, it was 70%, 3%, and 2%, respectively.

Likewise, urban areas had 2.68 doctors per 1,000 people in 2008, compared to just 1.26 per 1,000 people in rural areas. Not surprisingly, rural areas suffer worse health outcomes, with lower life expectancy and higher morbidity rates than in urban areas.

Chinese policymakers tend to discuss each of these issues separately. But that is a mistake.

Low fertility, the legacy of pronatal policies, and rural-urban divides all affect a population-age structure that has a direct bearing on China’s long-run economic development.

Economic growth depends heavily on the quality of the

labor force. If workers cannot access health care or acquire skills in school or on the job, the economy will suffer. Worldwide, differences in worker quality can explain around half of all crosscountry differences in income and growth.

Telling Chinese couples that they may have three children will not automatically increase the fertility rate, nor will it necessarily help with the larger economic challenge. Fertility is determined by socioeconomic factors such as the cost of raising children and the economic opportunities that parents foresee for their offspring. Those costs are extraordinarily high in urban China, where residential real estate is more expensive than in any other country at a similar income level.

Moreover, academic competition is intense. Children and their parents begin feeling the pressure of the nationwide gaokao exam for university admission in primary school. A 1999 reform that expanded the number of university slots could have partly relieved this pressure, except that job growth has not kept up; unemployment rates

for college graduates have duly increased.

Urban parents also face the burden of caring for their own aging parents. This is no small task in a country where pensions are limited, and where few people move to retirement communities later in life. Most aging Chinese expect their adult children to care for them. And because the onechild policy in place from 1979 to 2016 was enforced more strictly in urban areas, most young urban parents grew up as only children.

With no siblings to share the load, couples can expect to spend the next one or two decades caring for four aging parents in addition to rearing their own child. Adding two more children would increase the average couple’s dependents from five to seven.

By contrast, fertility is higher in rural areas, and the cost of rearing children is lower. Housing is cheaper, and the fact that there are fewer schooling opportunities means that parents can worry less about the costs of education.

Rural Chinese of childbearing age are much more likely to have siblings with whom they can work together in caring for elderly parents.

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