Business24 Newspaper - Sept. 11 - 2020

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NEWS FOR BUSINESS LEADERS

FRIDAY SEPTEMBER 11, 2020

Final feasibility report for Keta port to be ready by December

BY EUGENE DAVIS

The final feasibility report for the proposed Keta port project is expected to be submitted to government by December, Transport Minister Kwaku Ofori Asiamah has told Members of Parliament in Accra.

Government indicated its plans to construct a sea port at Keta, in the Volta Region, when it assumed power in 2017, but the project has

Although economic activity is picking up, it may need vat improvement to affect the growth target

Economists: Higher GDP growth possible, but not certain, as normality returns

More See Page 2

GACL auctioning Antrak properties to retrieve GH¢1.9m debt

BY NII ANNERQUAYE ABBEY

I

t is possible, say economists, but not certain, that Ghana’s economic growth for 2020 would beat the official projection of 0.9 percent, following the further relaxation of restrictions which were imposed to curb the COVID-19 pandemic in the country.

Courage Martey, an economist with investment banking firm Databank, told Business24 in an interview that economic activity, though increasing, is yet to

reach optimal levels that will alter the growth projection.

The August reading of the Ghana Purchasing Managers Index (PMI), a key measure of the pulse of economic activity, recorded its first expansion since February and the third successive month of increased new orders and output.

Mr. Martey said though the increase in economic activity – as confirmed by the PMI and an update from JP Morgan, the investment bank – is encouraging, it does not necessarily mean the economy will outperform the growth forecast.

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USD$1 =GHC 5.6734*

BRENT CRUDE $/BARREL

*POLICY RATE

14.5%*

NATURAL GAS $/MILLION BTUS

GHANA REFERENCE RATE

15.12%

GOLD $/TROY OUNCE

OVERALL FISCAL DEFICIT

11.4 % OF GDP

PROJECTED GDP GROWTH RATE AVERAGE PETROL & DIESEL PRICE:

BY EUGENE DAVIS

The Ghana Airports Company Limited (GACL), the country’s airport infrastructure manager, has resorted to auctioning the properties of defunct local airline Antrak Air to recover an outstanding debt of GH¢1.9m.

Antrak Air, once the leading domestic airline operator, ceased operations in 2015, after it encountered challenges with its

More See Page 2

More See Page 2

INTERNATIONAL MARKET

ECONOMIC INDICATORS *EXCHANGE RATE (INT. RATE)

“The improvements we see are still a great deal below optimum levels, which requires some level of caution. An important factor to also note is that business and consumer confidence is steadily firming up since the gradual easing of restrictions but remains fragile, reflected in the below 100 points reading by the BoG,” he stated.

In his view, beating the 0.9 percent growth target is dependent on factors such as a revival of global supply chains.

0.9% GHc 5.13*

CORN $/BUSHEL

43.22 1.79 1,842.40 329.50

COCOA $/METRIC TON

1,562.00

COFFEE $/POUND:

$109.65

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NEWS/EDITORIAL

FRIDAY SEPTEMBER 11, 2020

EDITORIAL

A Spanish approach to housing crisis 1

Wash your hands 2

Cover your cough 3

T

he desire by the SpainGhana Chamber of Commerce to facilitate partnerships between Ghanaian real estate developers and their Spanish counterparts is in the right direction.

Indeed, any firm approach to address the country’s huge housing deficit is in the right direction and must be commended.

However, the private sector needs all the support they can get from central government.

Ingrid Asensio Ramos, SecretaryGeneral of the Chamber, told Business24 that their members in the housing sector are willing to partner local estate developers to put up low-budget apartments for the low to middle-income Ghanaians.

This, she said, would broadly help to bridge the country’s housing deficit adding that Spanish builders boast decades of expertise in the coAnstruction of small but comfortable buildings.

“We see a lotof opportunities in affordable housing looking at Ghana’s construction sector; it something that everyone is talking about but it’s not well understood.

We need to consider the middleclass Ghanaians, for example, who are working but are earning low salaries and how we can put up houses that they could afford.

This is something that the key players will need to look at with partnerships, and that is why we brought them [our members] together to talk about affordable housing,” she said in an interview at the maiden edition of its novel initiative dubbed “Speed Networking” which brought together key players in all aspects of construction, construction materials and furnishings in Accra.

She added: “I think the concept of affordablehousinginmisunderstood when such apartments are selling over US$1,000.

Spanish real estate developers have the expertise, know-how and experience because they have been building affordable housing since the ‘70s and we hope that they will see the opportunities that exist here.

So, we [industry players] will need to sit down, study the salary structure of medium class Ghanaians, for instance, and see how to put up between 40 to 45square-metre houses that they can afford instead of 100squaremetre storey-building apartments that are more expensive to build.”

Spain-Ghana Chamber of Commerce is a private association that promotes and enhances bilateral relationships between Spain and Ghana, offering a wide range of services to support companies in both markets.

We back this inniative and call for more support for private developers

Economists: Higher GDP growth possible, but not certain, as normality returns Wear a mask Brought to you by

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CONTINUED FROM COVER

“The disruptions to global supply chains have not completely returned to normal levels. This means that while production is steadily returning, delivery on orders remains less efficient and hampered.

This means that there’s only a limit that stockpiling can go if deliveries to market do not improve significantly. This situation could also cap the impact on overall GDP growth for the year,” he argued.

Positive outcome Mr. Martey however added that despite the factors that still constrain economic growth, there is the possibility that an electionsrelated boost to aggregate demand could provide an upside push to overall growth and support the possibility of outperforming the 0.9 percent overall GDP growth forecast.

Dr. Said Boakye, a Senior Research Fellow at the Institute for

Fiscal Studies, a fiscal policy think tank, also told Business24 in an interview that government was too cautious in its growth projection, given that the lockdown introduced earlier in the year lasted for barely a month.

He argued that with the increase in economic activity following the easing of most of the restrictions, the projected growth for this year is likely to be surpassed.

“I think that the country may register some positive growth. I have said, about a month ago, that any growth between 1-5 percent will not be surprising. The growth target announced by the Minister [of Finance], to me, was too conservative. With the opening of the airport, I think the country should be able to do better than 0.9 percent growth,” Dr. Boakye said.

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News

FRIDAY SEPTEMBER 11, 2020

Final feasibility report for Keta port to be ready by December

BY EUGENE DAVIS

yet to be commenced.

Responding to a question before Parliament’s Public Accounts Committee about the delay in commencing the project, Mr. Asiamah said the government is committed to executing the project to help create jobs and enhance the socio-economic development of the area.

“We are at the feasibility study stage. We appointed Sellhon from Germany, a European company, to do the feasibility study; they are on it. Per the discussion we had with them, they are supposed to present the report to us between the last quarter of 2020 and the first quarter of 2021.”

“What we are planning to do is to undertake a PPP arrangement with the would-be investor,” he added.

Already, a Keta Port Director has been appointed by the President to coordinate all activities related to the construction and its subsequent management.

The feasibility study will confirm the viability of the project.

Kwaku Ofori Asiamah says government is committed to constructing a sea port at Keta.

GACL auctioning Antrak properties to retrieve GH¢1.9m debt

BY EUGENE DAVIS

wet lease arrangement with Swift Air, a Spanish airliner. The airline had also described the operating environment as difficult and unprofitable.

Appearing before the Public Accounts Committee of Parliament on Wednesday, the Managing Director of GACL, Yaw Kwakwa, said prior to the folding up Antrak Air, it owed GACL GH¢1.9m, which was never paid.

“We went to court and received an order to retrieve our money, [but] we struggled to find any asset we could lay claim to apart from what we found at the airports. So we have auctioned off their properties at the airports, like old airplanes and office facilities,” he said.

“What we have also done is that because they still own an airline operating certificate (AOC), we are monitoring [so that] if anyone shows up with their AOC, we will then ask [them] for our money,” he added.

The GACL, which procured a loan to build the new terminal at the Kotoka International Airport, was servicing the debt until the current pandemic led to the drying up of scheduled international passengers, and with it the Airport Passenger Service Charge (APSC)— the major revenue source of the company.

The company is reportedly engaged in discussions with lenders about meeting its obligations.

The airport operator, in a statement, said it triggered “the force majeure provision under the loan agreement and has been in discussion with its lenders to meet its obligations.”

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FRIDAY SEPTEMBER 11, 2020

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News

FRIDAY SEPTEMBER 11, 2020

First National Bank outdoors new package for SMEs First National Bank Ghana, a subsidiary of the FirstRand Group of South Africa, has announced the introduction of a tailored package for small and medium-scale enterprises in Ghana. The package is intended to help address some major challenges that hinder the growth of SMEs in the country.

With this new package, small and medium corporates can start, run and grow their businesses with special transactional capabilities that give them 24/7 access to First National Bank’s awardwinning enterprise platform, automated deposit terminals, email statements, forex and trade services, customized credit facilities and a daily cash pick up service.

Mark Achiampong, First National Bank’s Head of Commercial and Business Banking says the new SME offering is hinged on three key pillars-Start, Run and Grow, is packed with a suite of business toolkits as well as advisory services for small and medium businesses.

He said this is timely considering the challenges impacting the SME sector due to the Covid-19 pandemic.

“Our new business Gold cheque account is versatile, with hassle-free options that allow you to perform your daily transactions and are suited to small medium enterprises (SME’s),” Mr. Achiampong said.

“Interest is paid on all balance held in your Gold business account irrespective of the amount. You earn a free Gold card and access to all our merchant services at a flat monthly fee. There is also an added value to your business if you sign up

as one of our Agency Plus partners-a convenient way of partnering FNB Ghana to use your shop to provide banking services in your neighbourhood for a commission”.

On the bank’s round-theclock online banking service, Mr. Achiampong explained that it is an innovative, web-based offering which gives customers secure, controlled, real-time access to accounts and online banking functionality.

“We have automated deposit terminals in all our 11 branches giving you 24/7 access to all

our banking services, including deposits,” he says. “Trade services like global payments can be carried out on our robust digital platform.

You can monitor your business activity in real time and reduce internal fraud with FREE inContact Pro, and Email Statements. Details of your business transactions and email statements are all delivered to your inbox for free.”

Mr. Achiampong also pointed out that First National Bank’s SME package also allows SMEs to apply for an overdraft or business loan quickly and easily.

Interested businesses can access this package by visiting any of the First National Bank Ghana branches in Accra, Tema, Kumasi and Takoradi or alternatively through www.firstnationalbank.com.gh for further assistance.

First National Bank Ghana is a subsidiary of South Africa’s FirstRand Group which is the largest bank by market capitalisation listed on the Johannesburg Stock Exchange – Africa’s largest bourse.

First National Bank is leveraging on the experience and financial muscle of its parent company to excel in Ghana.

The African Policy Dialogue discusses way forward for sustainable youth employment The African Policy Dialogue has organised a stakeholder engagement on youth employment in Ghana.

Christened ‘The Way Forward for Sustainable Youth Employment’ is an initiative by the Department of Economics, University of Ghana, Legon, the Ghana Netherlands Business and Culture Council (GNBCC) and the Netherlands African Business Council (NABC) with support from Include Knowledge platform.

The session was attended by over hundred people from various sectors: private sector, public sector, knowledge institutions, NGOs/CSOs, political parties and support institutions. Young people were also present during the meeting to share their opinions.

When making policies about the youth, their perspective should

also be part of the equation. The aim of the session was to encourage the exchange of existing and new knowledge across sectors in Africa.

The meeting was opened by Bright Wireko-Brobby, Deputy Minister of Employment and Labour Relations who emphasized on the importance of youth empowerment.

Gladys Ofei, Senior Trade Officer at the Netherlands Embassy in Ghana in her speech encouraged participants to share their knowledge to create more opportunities for the youth in Ghana.

The challenge of generating adequate quality of employment for the growing labour market entrants remains a major socioeconomic and political problem in Ghana which is highlighted by Prof.

William Baah-Boateng as described in his latest research paper. This research paper ‘Africa Youth Employment Insights: Ghana Brief’ summarized the challenges and recommendations to build towards sustainable youth employment in Ghana.

The participants had different round table discussions on possibilities for youth employment across sectors. All the input gathered during the meeting will feed into a discussion paper on youth employment in Ghana and will be followed up by expert meeting in the beginning of 2021.

Include platform is a DutchAfrican platform that promotes evidence-based policymaking on inclusive development in Africa through research, knowledge sharing and policy dialogue.

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FRIDAY SEPTEMBER 11, 2020

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Feature

HOW TO SHARE A RIVER

BY BINIAM BEDASSO AND MARIA A. GWYNN

I

n 2011, Ethiopia launched construction on the Grand Ethiopian Renaissance Dam (GERD) in the Blue Nile, in order to secure its water resources and generate hydropower. But the project has been highly controversial, with Egypt, located downriver, objecting strongly to it. Unless the two countries can reach a negotiated settlement, the entire region could be plunged into conflict.

For Ethiopia, the GERD could ease a chronic energy shortage that has left over 55% of the country’s population without access to electricity. The dam also has emotional significance, promising to fulfill a dream long etched in the public’s imagination.

But the Nile is strategically significant for every country it touches. Egypt’s agricultural sector depends heavily on its waters. Dam building raises serious concerns for everyone downstream.

That shared dependence on the Nile is why, in 1999, ten countries created the Nile Basin Initiative as a forum to discuss the sustainable management and development of the river’s resources. The Initiative then began developing the Cooperative Framework Agreement, which outlined countries’ principles, rights, and obligations and sought to establish a permanent Nile River Basin Commission to facilitate the CFA’s implementation.

But, in 2010, Egypt and Sudan rejected the CFA. A year later, Ethiopia began building the GERD anyway, choosing to self-finance the $4.8 billion project. The first filling of the reservoir was recently completed, and the remaining 25% of the project will be finished when the dry season arrives.

Meanwhile, tripartite talks, mediated by the African Union, have continued, including this summer, but have yielded no progress,

FRIDAY SEPTEMBER 11, 2020

Ethiopia and Egypt have again failed to reach an agreement on the Grand Ethiopian Renaissance Dam on the Blue Nile, raising fears that the entire region may be plunged into conflict. But a similar dispute in South America in the 1970s shows how this outcome can be avoided.

owing to two sticking points. The first is drought mitigation: Egypt wants to secure a much higher flow of water during dry years than Ethiopia is willing to concede.

The second is dispute resolution: Should a binding arbitration clause be included in any treaty?

But mistrust between the parties has reinforced the impasse, fueling tensions that could lead to violence.

Yet experience elsewhere shows that a better outcome is possible.

In the 1970s, Brazil and Paraguay initiated a binational effort to construct a massive hydroelectric dam on the Paraná River, located on their shared border. The Itaipu Dam –completed in 1984 – today generates around 88% of Paraguay’s electricity and over 11% of Brazil’s supply, making it a world leader in renewable-energy production capacity.

But the Itaipu Dam project faced considerable resistance from Argentina, a downstream country that, like Egypt today, worried about its water supply. Owing to its objections, international financial institutions initially refused to finance the dam’s construction.

The problem was resolved with the conclusion of the Acuerdo Tripartito between Argentina, Brazil, and Paraguay, which all three signed in 1979. The agreement established acceptable changes in water levels, as well as environmental protections and water-quality standards. To monitor compliance,

the agreement established a mechanism for the three countries to exchange information on hydrological conditions. Moreover, an institutional framework for cooperation and transboundary water management was created for the Paraná Basin.

The instruments and institutions established at the Itaipu Dam’s inception continue to support dispute resolution. Today, extreme drought has severely reduced the Paraná River’s water flow, reducing Argentina’s water supply and making it difficult in landlocked Paraguay to navigate the river, which is essential for its agricultural export industry.

While no independent arbitration body is in place to manage this crisis, the affected countries have negotiated an amicable solution, based on the 1970s treaties and international law. The binational council managing the Itaipu Dam agreed to release just enough water from the reservoir to ease the drought’s effects for downstream countries, without compromising energy production. The work of technical commissions and exchange of data on hydrological conditions among institutions in all affected countries were critical to the negotiations’ success.

This experience offers valuable lessons for Egypt and Ethiopia, including the value of treaties and international law for long-term dispute resolution. More broadly, it shows how institutionalization and cooperation can help to build trust – and bring shared benefits.

The Itaipu project has contributed to regional economic integration, by providing the resources to finance infrastructure, such as international bridges, airports, and highways, as well as social and environmental development projects. Likewise, once the GERD reaches full capacity, it can contribute to creating a regional energy market.

As the effects of climate change become increasingly apparent, so does the imperative of using natural resources more efficiently and equitably, and shifting to renewable energy sources. By following in the footsteps of Argentina, Brazil, and Paraguay, the Nile countries can make important progress toward those goals – and set a powerful global precedent for the use of transboundary resources to foster sustainable development.

Biniam Bedasso is a researcher and public-finance specialist at the Collaborative Africa Budget Reform Initiative. Maria A. Gwynn is on leave from the Institute for Public International Law at the University of Bonn to serve as Governing Council Member of the Binational Entity Itaipu. Copyright: Project Syndicate, 2020. www.project-syndicate.org

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News

FRIDAY SEPTEMBER 11, 2020

Spanish chamber to partner Ghana’s affordable housing agenda The Spain-Ghana Chamber of Commerce says it will instigate healthy partnerships among Spanish construction and realty service providers and their Ghanaian counterparts in their bid to promote and support government’s affordable housing plan.

Ingrid Asensio Ramos, SecretaryGeneral of the Chamber, told Business24 that their members in the housing sector are willing to partner local estate developers to put up low-budget apartments for the low to middle-income Ghanaians.

This, she said, would broadly help to bridge the country’s housing deficit adding that Spanish builders boast decades of expertise in the construction of small but comfortable buildings.

“We see a lot of opportunities in affordable housing looking at Ghana’s construction sector; it something that everyone is talking about but it’s not well understood.

We need to consider the middleclass Ghanaians, for example, who

Ingrid Asensio Ramos, Secretary-General of SPCC (left), with Ruth Fosua Tetteh, Deputy Business Development Manager, Business24 Limited.

are working but are earning low salaries and how we can put up houses that they could afford.

This is something that the key players will need to look at with partnerships, and that is why we brought them [our members] together to talk about affordable housing,” she said in an interview

Ghana Water Company to cut supply to east Accra for maintenance works The Management of Ghana Water Company limited (GWCL), has announced a planned interruption of water supply to the Eastern Part of the Greater Accra Region from September 1420.

The company in a statement said: “GWCL Engineers will be replacing close to 2 kilometers of a weak session of the main 42inch diameter transmission pipeline from Kpong to Tema, which is causing GWCL to lose several volumes of water on daily basis and consequently having a serious impact on the volumes available for consumption.

“Management is as a result entreating consumers in Accra, especially consumers in the eastern part of the metropolis to store enough water for consumption during the period of the shut-down.”

Affected Areas The areas envisaged to be hard hit include; Afienya, Apallonia, Gbetsele, Ashaiman, Katamanso, Kakasunanka, Adjei Kojo, East Legon Trasaco, All the communities in Tema (Community 1 to 25), Free Zones enclave, Tema Industrial Area, Dawhenya, Prampram, Spintex Road, Batsonaa, Coca Cola, Kasapreko, Manet, Lashibi,

Klagon, Sakumono, and surrounding communities.

Mitigating Measures Meanwhile, the company has put in place measures to serve the affected areas so the impact will not be adverse. They include: Governments COVID-19 free water reservoirs will supply water to affected communities for free; and Essential service providers like the hospitals and schools will also be served with water tankers.

The company urged customers to store water ahead of the shutdown to reduce the impact of their daily lives.

at the maiden edition of its novel initiative dubbed “Speed Networking” which brought together key players in all aspects of construction, construction materials and furnishings in Accra.

She added: “I think the concept of affordable housing in misunderstood when such

apartments are selling over US$1,000.

Spanish real estate developers have the expertise, know-how and experience because they have been building affordable housing since the ‘70s and we hope that they will see the opportunities that exist here.

So, we [industry players] will need to sit down, study the salary structure of medium class Ghanaians, for instance, and see how to put up between 40 to 45square-metre houses that they can afford instead of 100squaremetre storey-building apartments that are more expensive to build.”

Spain-Ghana Chamber of Commerce is a private association that promotes and enhances bilateral relationships between Spain and Ghana, offering a wide range of services to support companies in both markets.

It also develops commercial opportunities for its members in the bid to improve marketable trade in both directions.

Dettol, traders, partner to rollout hand washing facilities in Accra markets

Global consumer goods company, Reckitt Benckiser, has provided market traders with handwashing units as well as Dettol soap to promote hygiene and curb the spread of corona virus.

A total of 15 hand washing units have been handed to market associations in 3 high-traffic markets across the capital, Accra. The beneficiary markets are Kaneshie, Madina and Okaishie market.

These handwashing units, each with a capacity of 100 litres of water, will be stocked with Dettol soap and will be managed by the Market leaders who run the respective markets. The units have a foot pump, and piping leading into a drainage bucket. The foot pump is a convenient mechanism that allows for users to wash their hands without having to twist a tap, thereby helping to maintain a higher standard of hygiene.

“By partnering with market traders, who have been mostly hit by the pandemic, we will be helping

these traders to remain in business by making their working areas hygienic during these unprecedented time,” said Cassandra Atibila the Brands Manager, during the handing over of the hand washing units at Okaishie.

“These handwashing units help deliver the right to hygiene and sanitation for both traders and consumers.”

A significant number of the informal sector workers, such as Kayayei, small-scale farmers and traders, are confronted with a major challenge of accessing proper hygiene during this coronavirus pandemic.

To address this gap and safeguard income security to this sector, we are partnering with market Leaders to ensure that markets remain safe and hygienic to continue trading.

The company will also be carrying out sensitization and habit education campaigns within the markets to improve knowledge on hand hygiene and drive positive habit change, said Jamel Amoako the Country Manger.

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Feature

FRIDAY SEPTEMBER 11, 2020

THE REAL ESTATE AGENCY BILL, 2020

T

he purpose of the Real Estate Agency Bill, 2020 is to regulate real estate agency practice, the conduct of real estate agency practitioners, commercial transactions in real estate including the sale, purchase, rental and leasing of real estate, as well as other real estate transactions.

The real estate sector is of great importance to the economy of every country and particularly to the financial market because of the large monetary transaction involved. Ghana, like all other economies, has had the practice of real estate agency in existence for a considerable length of time. The practice has grown considerably in recent years as the property market has become more active with the buying, selling, and leasing of property as an asset class and also for occupation.

The role of the real estate broker has traditionally been as an intermediary between the purchaser and vendor of property.

One result of the increase in activities in the property market has been the influx of persons who have introduced fraud into the trade. Many real estate brokers and agents do not have any particular training in real estate agency and many others have no identifiable

office accommodation. Investors in property who deal with real estate brokers have no guarantee against fraud and many have been swindled.

Furthermore, a glance at the real estate business shows the lack of appropriate internal control mechanisms, policies, training and audit systems among other things which make the sector attractive to criminals. Real estate transactions by their nature involve huge sums of money and because of this, there is the need to ensure that real estate agency practitioners and parties to real estate transactions keep records of their transactions for tax purposes. The lack of record-keeping by most real estate practitioners and parties to real estate transactions fails to pay tax on the incomes earned from the transactions. This denies the Government the necessary income for developmental purposes.

Another downside to the current state of real estate agency practice is the promotion of unhealthy competition between legitimate and criminal businesses because investment in the real estate sector offers advantages for legitimate lawabiding individuals and businesses and criminals who abuse the system. The socio-economic impact is significant though not readily

measurable.

There is therefore the need to regulate real estate agency services to rid the industry of fraud, laundering of illegal income, and tax evasion to minimise the effect of these vices on the national economy and enhance the international image of the country.

Additionally, Ghana, as a signatory to international conventions on corruption, including the African Union Convention on Preventing and Combatting Corruption and the United Nations Convention against Corruption, needs to adhere to international standards for the prevention of money laundering.

Some studies have identified real estate transactions as an avenue to launder money. There are diverse ways in which money is laundered through the real estate sector including direct cash purchase of properties, use of fictitious names to purchase property, and the use of third parties or front men to purchase property. Thus in the country’s quest to adhere to international best practices, the Bill seeks to plug the avenues in which real estate transactions are used to launder money including the prohibition of the use of cash for real estate transactions. This will ensure that there is a detailed tracking of transactions and the

persons involved in the real estate transactions.

The passage of the Bill will go a long way to strengthen the anticorruption initiatives in the country and curb money laundering and other financial malpractices in the sector. It will also be in the interest of good governance and will give the country an improved standing in subsequent assessments by the International Action Group against Money-Laundering in West Africa.

The overreaching effect of the Bill will be the sanitization of the entire real estate market and the protection of all participants and the enhancement of tax revenue for development.

Surv. J. Zinzi Ayitey Senior Lecturer, KNUST is a Facilitator of the Public Private Dialogue Platform at a Key Stakeholders Workshop organised by the Ghana Chamber of Construction Industry under the auspices of the Ministry of Works and Housing funded by BUSAC FUND and its donor partners DANIDA and USAIAD. The Real Estate Agency Bill which is currently in Parliament and has gone through the second reading awaiting its passage into an act before the end of this current parliament.

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News

FRIDAY SEPTEMBER 11, 2020

Brussels Airlines restarts Accra operations Sept. 11 Brussels Airlines is to restart its commercial flights between Accra and Brussels on September 11.

To protect the health of its customers and staff throughout their travel journey, the airline has reviewed its services and processes and has taken the necessary measures, based on recommendations by the international aviation organizations IATA and EASA and the Belgian health authorities.

Based on the market demand and the applicable travel restrictions, the airline has designed a reduced schedule, starting with two flights per week.

Via its hub in Brussels, Brussels Airlines passengers have access to the rest of the airline’s network, including connections to London, Brussels, Paris, Geneva, Berlin, Frankfurt, Milan and the United States and Canada with the schedule below: • Wednesdays and Saturdays (departure from Accra at 21:10 and arrival in Brussels at 05:40 +1).

• Tuesdays and Fridays (departure from Brussels at

15:40 and arriving in Accra at 20:20) As from 25 September, the schedule will change as below: Wednesdays and Fridays (departure from Accra at 21:20 and arrival in Brussels at 05:40 + 1; and Tuesdays and Thursdays (departure from Brussels at 15:40 and arriving in Accra at 20:20)

As travel plans can change for passengers in these volatile times, Brussels Airlines continues its flexible reservations policy in order to offer its customers the necessary flexibility.

Customers who had already booked a flight as well as those booking their tickets now, can postpone their travel to another date and/or destination without

change fees. Customers can postpone their travel plans until 31 December 2021. More information about all options can be found on www.brusselsairlines.com.

In order to protect the health of its customers and staff, Brussels Airlines has put in place several hygiene measures while still allowing you to travel in all comfort.

VRA happy with work on 17-megawatt solar power project Mr. Emmanuel Antwi-Darkwa, the Chief Executive Officer (CEO) of the Volta River Authority (VRA), has expressed satisfaction with the progress of work on the 17-megawatt solar project in the Upper West Region.

He commended the contractor in charge of the project, who according to him paid attention to the operational and construction practices of the project.

Mr Antwi-Darkwa was speaking to the media at Lawra during a visit to the project site to inspect the progress of work and to assess challenges of project execution for redress.

President Nana Addo Dankwah Akuffo-Addo this year, cut the sod for the construction of the 17-megawatt solar project in the Upper West Region.

The project 13 megawatts is at Kaleo in the Nadowli/Kaleo District and four Megawatt at Lawra in the Lawra Municipality.

“The project has been well executed from the design phase to the construction. I think it’s a great project. There is great attention to details as far as the operational and construction practices are concerned. I think, all in all, I will congratulate the contractor for good work done,” the VRA CEO said.

Mr Antwi-Darkwa noted that the project could not be completed

within six months as scheduled due to the outbreak of the Coronavirus (COVID-19) pandemic in the country.

He explained that the project formed part of the government’s climate agenda to reduce the carbon effect.

“The more renewable energy you develop the more improvement you get in the carbon footprint as you are not generating energy from fossil fuel,” he said.

Mr Antwi-Darkwa said the project would provide an opportunity for a large scale utility project in the area.

He said it would also bring opportunities, including job opportunities for both skilled and unskilled labour.

Mr Isaac Badu, the Project Manager for the VRA, said the capacity of the 4-megawatt solar project at Lawra was increased to 6.5 megawatts at no cost to the government.

He said the project was about 80 per cent complete and expressed the hope that it would be commissioned before November 2020.

“It is another source of power generation for us. So it has come to augment whatever power supply we have,” Mr Osman Oludiba Awuba, the Managing Director (MD) for the Northern Electricity Distribution Company Limited (NEDCO), said.

GNA

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Feature

FRIDAY SEPTEMBER 11, 2020

The role of tax haven in money laundering activities

BY RICHIESON GYENI-BOATENG, CAMS

O

ver the past weeks, there has been serious discussion all over the media (including social media) about the country (Ghana) registering a company in a tax haven country, The Island of Jersey.

Politicians and industry experts have been sharing their views, with others even saying the Country (Ghana) is promoting money laundering and the transaction lacks transparency. The question is, does investing in a tax haven wrong and why will one decide to do that?

This article tries to share some light on the operations of tax haven location/ country and how it can be vulnerable to money laundering activities.

A tax haven country by definition is an offshore country that offers foreign individuals and businesses little or no tax liability in a politically and economically static environment. These countries rely on the foreign inflows (foreign capital) into the country through financial institutions and other investment vehicles for their development. One doesn’t need residency or business presence in a tax haven country to benefit from the country’s tax policies.

Tax haven countries are characterized by their developed financial institutions and markets, low record of corruption, limitation on sharing and reporting financial information of beneficiaries to foreign tax authorities and lack of transparency obligations.

Such countries also have lax Anti Money Laundering (AML) rules and laws. Investment in these countries are safe and hardly disclosed. Even though there is no comprehensively defined standard for the classification of a tax haven country, there are regulatory bodies such as Organization of Economic Cooperation and Development (OECD) and the U.S. Government Accountability Office that monitor tax haven countries and have listed the following countries as popular tax haven countries: Andorra, the Bahamas, Belize, Bermuda, the British Virgin Islands, the Cayman Islands, the Channel Islands, the Cook Islands, The Island of Jersey, Hong Kong, The Isle of Man, Mauritius, Lichtenstein, Monaco, Panama, St. Kitts, and Nevis.

To stretch the definition of tax haven countries further, any international location which have special tax laws to attract capital investment may be classified or identified as a tax haven. Example of such locations in the United States include Alaska, Florida, Nevada, New Hampshire, South Dakota,

Tennessee, Texas, Washington, and Wyoming, where no state income tax is required. Also United Arab Emirate offer special tax dispensation for investors.

Nevertheless, locating a business in a tax haven location can be used legally in tax planning where profits are properly attributable to the tax haven and sufficient economic substance is maintained.

Investing or operating a company from a tax haven country or location is not a crime but serious factors need to be considered as tax haven countries or locations are the target of criminals to launder their ill-gotten money. Simply put, tax haven countries are vulnerable to money laundering activities.

Criminals are attracted to tax haven countries because these countries offer extensive array of facilities to investors who are not willing to disclose the origin of their assets. It offers criminals the opportunity to hid their sources of funds from the control of their home regulatory authorities.

These tax haven countries enforce very strict financial secrecy, effectively shielding investors from investigations and prosecutions from their home countries.

Also criminals are attracted to countries and/ or locations that offer high levels of secrecy, variety of financial mechanisms and provide anonymity for the beneficial owners for a wide variety of reasons including the potential cover and protection they offer for money-laundering and various exercises in financial fraud. Also jurisdictions with less transparent business practices attracts criminals to invest their dirty money.

Individuals and companies that operate and do business in a tax haven country or location must be classified as high risk and put under the microscope when dealing with them. Proper Enhanced Due Diligence need to be conducted when dealing with such people and business.

Also financial transactions emanating from tax haven countries must be properly documented and reviewed. Where the financial institution suspects the financial transaction to be suspicious of money laundering, report must be file with the Financial Intelligence Units/ Centre for further investigations.

Financial Institutions, dealing with customers that operate

and invest in tax haven location, must institute systems that will enable them obtain the necessary documentations for customer identification and transactions processed and store these documents well for future reference and enable regulatory authorities to be able to carry out their supervisory oversight functions.

Also safeguarding data related to every transaction processed facilitates investigation of suspicious activities.

Every country in the world, tries its best to attract potential investors into the country to boost economic activities by instituting one favorable policy or the other but measures need to be put in place so that the country doesn’t become vulnerable to criminals or a hub for criminal funds.

Would you mind doing me a favor? Share this article with someone so that the awareness of money laundering and terrorist financing could be spread to avoid being use as a conduit by criminals.

If you require further information on this article, please contact Richieson @richieson. gyeniboateng@gmail.com

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GHANA NATIONAL CHAMBER OF COMMERCE AND INDUSTRY

NOTICE OF THE 44TH ANNUAL GENERAL MEETING OF THE GHANA NATIONAL CHAMBER OF COMMERCE AND INDUSTRY

In accordance with Clause 26 (1)(a) of the Chamber's Rules (1988), NOTICE is hereby given that the 44th Annual General Meeting (AGM) of the Ghana National Chamber of Commerce and Industry (GNCCI) shall be st held on Wednesday 21 October, 2020 at 10:00am at the Ghana Shippers' House Conference Room, Near Fidelity Bank, Ridge - Accra.

PART 1

A. PLENARY SESSION: I. Address by the President of the Ghana National Chamber of Commerce and Industry ii. Solidarity messages iii. Address by the Special Guest of Honour iv. Vote of Thanks PART 2

B. BUSINESS SESSION: TO RECIEVE AND DISCUSS THE FOLLOWING: i. The Report of the Council for the year 2019 ii. The National Treasurer’s Report for 2019 iii. The Account for the year duly audited and the Auditor's Report thereon for 2019 iv. Appointment of Auditors C. ELECTIONS: a. To elect the following National Officers for 2020-2022 I. The President ii. The 1st Vice President iii. The 2nd Vice President iv. The National Treasurer b. To consider and discuss motions of which due notice have been given You are cordially invited to attend the above meeting.

By Order of the Council SIGNED Mark Badu-Aboagye Chief Executive Officer

FRIDAY SEPTEMBER 11, 2020