Business24 Newspaper - June 22, 2020

EDITION B24 | 65

ACCRA, GHANA THEBUSINESS24ONLINE.NET

MONDAY JUNE 22, 2020

Slump in tourist arrivals pushes sector to the brink

Fuel prices up again

BY BENSON AFFUL

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Barbara Oteng Gyasi, Ghana’s Tourism Minister has the difficult task of turning around the fortunes of a sector badly impacted by the COVID-19 pandemic.

BY DOMINICK ANDOH

The COVID-19 pandemic has had far-reaching impacts on the country’s tourism sector—which saw one of its biggest booms after a successful Year of Return campaign last year.

The sector is heavily reliant on tourists from Europe and North America, but the pandemic has led to a drying up of this segment of the market.

International tourist arrivals fell in March, the first month of the pandemic in Ghana, by 40.4 percent to 43,366 compared with the same period in 2019.

Compared with February, March tourist arrivals dropped by 45.4 percent.

The data, published in the Bank of Ghana’s latest

Real Sector Developments Report, also showed that arrivals declined by 10.6 percent year-onyear to 211,599 in the first quarter of 2020.

Border closures, flights suspension impact tourism The decline in the fortunes of the sector is the result of the border closures, travel restrictions, and the consequent halt in scheduled international flights servicing the country’s main Kotoka International Airport (KIA).

This underlines the fact that tourism is heavily dependent upon the aviation industry, and any change in aviation’s fortunes has a significant impact on tourism.

As at the end of May, international airlines flying to KIA—which are the main facilitators of tourists from Europe and America—had lost US$400m in

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COVID-19 response: Republic Bank Ghana donates GH¢1.1m MORE ON PG 3

WHO concerned over COVID-19 impact on women, girls in Africa MORE ON PG 5

ECONOMIC INDICATORS *EXCHANGE RATE (INT. RATE)

USD$1 =GHC 5.6230*

*POLICY RATE

14.5%*

GHANA REFERENCE RATE

15.12%

OVERALL FISCAL DEFICIT

6.6 % OF GDP

PROJECTED GDP GROWTH RATE PRIMARY BALANCE.

1.5% -1.1% OF GDP

AVERAGE PETROL & DIESEL PRICE:

GHc 5.13*

INTERNATIONAL MARKET BRENT CRUDE $/BARREL

42.30

NATURAL GAS $/MILLION BTUS

1.78

GOLD $/TROY OUNCE

COVID-19 is a global battle, but climate change is still the world’s war SEE INSIDE

1,685.06

CORN $/BUSHEL

329.50

COCOA $/METRIC TON

2,384.00

COFFEE $/POUND:

+5.70 ($108.30)

COPPER USD/T OZ.

220.15

SILVER $/TROY OUNCE:

Copyright @ 2020 Business24 Limited.

All Rights Reserved.

Tel: +233 030 296 5297

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NEWS/EDITORIAL

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MONDAY JUNE 22, 2020

EDITORIAL

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Wash your hands 2

Cover your cough 3

Domestic tourism campaign must start now Given the devastating impact of the COVID-19 pandemic on the country’s tourism sector, which is heavily dependent on foreign tourists, the policy direction should be to embark on an aggressive domestic tourism campaign to stimulate demand.

The crucial role of in-bound tourism in the sector’s fortunes was underscored by the increased tourism receipts recorded last year on the back of the Year of Return campaign.

The average expenditure per tourist increased from US$2,708 in 2018 to US$2,931 in 2019, with accommodation expense accounting for 41 percent, food and beverages 21 percent, shopping 14 percent, local

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LIMITED Copyright @ 2019 Business24 Limited. Ghana. All Rights Reserved.

Editorial Team Dominic Andoh: Editor Eugene Kwabena Davis (Head of Parliamentary Business & Commodities) Benson Afful (Head of Energy & Education) Patrick Paintsil (Head of Maritime & Banking) Nii Annerquaye Abbey (Online Editor) Marketing Alexander Lartey Agyemang (Business Development Manager) Ruth Fosua Tetteh (Dept. Business Development Manager) Gifty Mensah (Marketing Manager) Irene Mottey (Sales Manager) Edna Eyram Swatson (Special Projects Manager ) Events Evelyn Kanyoke (Snr. Events Consultant) Finance/Administration Joseph Ackon Bissue (Accountant)

depths never before experienced by the industry. The undercapacity has put thousands of jobs at risk.

Business24 agrees with Dr. Kobby Mensah, an academic and tourism marketing consultant, who posit that it is imperative for the sector regulator, Ghana Tourism Authority, to aggressively promote domestic tourism and gradually reduce reliance on in-bound tourists.

We should endeavor to bring back the culture of school children going on regular educational tours to various parts of the country to learn more about the country.

Slump in tourist arrivals pushes sector to the brink (…CONTINUED FROM COVER )

Wear a mask

transport 8 percent, entertainment 5 percent, and other spending 11 percent.

However, the latest Bank of Ghana’s Real Sector Developments Report, also showed that arrivals declined by 10.6 percent year-onyear to 211,599 in the first quarter of 2020; revealing the country’s over reliance on foreign tourists.

The effect of this huge drop in tourists’ arrival is evident in the reduction in hotel occupancy and the temporal suspension of operations of hundreds of travel and tour agencies.

The hotel industry has also been hit by the dwindling tourist arrivals, with occupancy rates plunging to

potential earnings because of the travel restrictions. Operators estimate that if the border closure continues, an additional US$100m in potential earnings would be lost by the end of June.

The hotel industry has also been hit by the dwindling tourist arrivals, with occupancy rates plunging to depths never before experienced by the industry. The under-capacity has put thousands of jobs at risk.

Tourism receipts and domestic tourism revival The crucial role of in-bound tourism in the sector’s fortunes was underscored by the increased tourism receipts recorded last year on the back of the Year of Return campaign.

The campaign, which commemorated the 400th anniversary since the first documented slave ship from Africa landed in the United States of America, boosted international tourist arrivals by 27 percent in 2019, taking arrivals to 1.13m. Accompanying tourism receipts hit US$3.3bn in the same period.

The average expenditure per tourist increased from US$2,708 in 2018 to US$2,931 in 2019, with accommodation expense accounting for 41 percent, food and beverages 21 percent, shopping 14 percent, local transport 8 percent, entertainment 5 percent, and other

spending 11 percent.

Despite these impressive statistics, COVID-19 has served to remind policy makers of the need to diversify Ghana’s tourism offering— which mainly is centered on history and culture—and to embark on a rigorous campaign to increase domestic tourism.

Dr. Kobby Mensah, an academic and tourism marketing consultant, told Business24 that it is imperative for the sector regulator, Ghana Tourism Authority, to aggressively promote domestic tourism and gradually reduce reliance on inbound tourists.

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MONDAY JUNE 22, 2020

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Fuel prices up again

BY BENSON AFFUL

Fuel consumers are set to pay more at the pump as some major Oil Marketing Companies (OMCs) have further increased their fuel prices over the weekend.

Shell and Goil over the weekend increased their prices by 4 percent, in addition to the 8 percent increase last week, bringing the total increase to about 12 percent within a week, Business24 has gathered.

Speaking in an exclusive interview on whether other OMCs are likely to increase their prices to match Goil and Shell, the Executive Director of the Institute of Energy Security (IES), Paa Kwasi Anamua Sakyi, said other OMCs may hesitate to increase prices at the pump this time round due to competition for market share.

The IES forecasted last week that it foresees an additional increase in fuel prices despite the 8 percent increase last Monday.

The IES based its forecast on the 16.2 percent increase in Brent crude price, in addition to the 15.4 percent and 15.8 percent appreciation in

the prices of gasoline and gasoil respectively.

The forecast price hike also takes cognisance of the depreciation of the local currency against the major trading currency, the US dollar.

Analysts have said they foresee global oil prices remaining depressed in the near term despite recent gains.

Rating agency Moody’s said it expects prices to remain lower for longer, which will worsen pressures for oil exporters.

Oil prices rose on the international market last week. Brent crude rose 38 cents, or 0.9 percent, to settle at US$41.18 a barrel. West Texas Intermediate crude (WTI) rose 75 cents, or 2 percent, to end at US$38.94 a barrel.

The surge in the price of Brent, according to analysts, can be attributed to the easing of restrictions on economic activities around the world, as well as reaction to the OPEC+ agreed extension to historic production cuts of 9.6m barrels per day (mbpd) till end July.

COVID-19 response: Republic Bank Ghana donates GH¢1.1m Republic Bank Ghana, a subsidiary of Republic Financial Holdings Limited (RFHL) of Trinidad and Tobago, has announced a total donation of GH¢1.1m to various institutions in Ghana in support of the fight against COVID-19.

The donation in Ghana is part of Republic Financial Holdings’ US$2m collective contribution across all the territories in which the bank operates, namely, Trinidad and Tobago, Grenada, Guyana, Barbados, Ghana, Suriname, Cayman Islands, St. Lucia, St. Vincent & the Grenadines, St. Kitts & Nevis, St. Maarten, Anguilla and Dominica.

The beneficiary institutions of the GH¢1.1m donation in Ghana are: President’s COVID-19 Trust Fund (GH¢200,000), Greater Accra Regional Hospital (GH¢250,000), Kumasi South General Hospital (GH¢150,000), Various Zonal/ Regional Health Centres (GH¢83,331), and a contribution of GH¢416,669 as part of the Ghana Association of Bankers’ GH¢10m donation to the government.

According to the Managing Director of Republic Bank Ghana, Mr. Farid Antar, the GH¢1.1m donation is under the bank’s Power-To-Make-ADifference (PMAD) programme in the fight against COVID-19, as Ghana strives to overcome the pandemic.

“We had a COVID-19 intervention for our customers and staff, few days ago, when we announced a loan deferment package of up to six (6) months moratorium. And now we are announcing our contribution of GH¢1.1m to the society towards the fight against the COVID-19 pandemic,” he said.

In announcing the Group’s US$2m contribution, the President & CEO of Republic Financial Holdings, Nigel Baptiste, stated: “The full extent of the human tragedy that is unfolding before our eyes is epochal. While the Group is committed to helping our clients survive the economic impact, there is so much more that is needed to be done at the society level. No country is immune from this virus, and given our preference for open economies, we all must be interested in what happens

Farid Antar, Managing Director of Republic Bank Ghana

elsewhere. Management of this virus requires global collective responsibility.”

The pledge of the equivalent of US$2m is targeted to assist with the purchase and provision of critical needs such as ventilators, PPE equipment, testing kits, food and supplies for the health care workers as well as supporting the all-important social distancing messages.

Members of the Republic Group have already taken numerous steps to safeguard the wellbeing of their customers and staff while ensuring the provision of essential banking services. The Group has also reached out to its customers to provide cash flow relief to those affected by the disruption brought about by the pandemic.

Republic Bank said it recognises the dynamic nature of the situation and remains committed to a continuous assessment of its actions and responses to ensure that the best interests of its staff, customers and communities are served.

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MONDAY JUNE 22, 2020

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WHO concerned over COVID-19 impact on women, girls in Africa Humanitarian crises, including health emergencies affect men and women differently. As COVID-19 continues to spread in Africa, there are concerns over its impact on women and girls, with vulnerabilities feared to worsen as the pandemic overwhelms health systems.

Although overall in the African Region, women account for around 40% of COVID-19 cases, this ranges from 35% in some countries to over 55% in South Africa.

“We are already seeing that the impact of COVID-19 on women and girls is profound. Women are disproportionately affected by lockdowns and this is resulting in a reduced access to health services,” said Dr Matshidiso Moeti, World Health Organization (WHO) Regional Director for Africa.

As efforts are focused on curbing the spread of COVID-19, essential services such as access to sexual and reproductive health services have been disrupted. According to preliminary data, in Zimbabwe, the number of caesarean sections performed decreased by 42%

between January and April 2020 compared with the same period in 2019. The number of live births in health facilities fell by 21%, while new clients on combined birth control pills dropped by 90%. In Burundi, initial statistics show that births with skilled attendants fell to 4749 in April 2020 from 30 826 in April 2019.

Recent analysis published in the Lancet Global Health suggests that a reduction in maternal health services of between just 9.8-18.5% could lead to as many as 12 200 additional maternal deaths over six months in low- and middle-income countries.

The economic hardship due to COVID-19 is also greater for women according to a World Bank report.

Informal workers, most of whom are women, account for more than 90% of the labour force in subSaharan Africa. Informal sector jobs are particularly at risk during the pandemic.

In addition, women face a higher risk of gender-based violence in the wake of the COVID-19 outbreak. A

recent study by UN Women found that reports of violence against women, and particularly domestic violence, have increased in several countries as security, health, and financial worries create tensions and strains accentuated by the cramped and confined living conditions of lockdown.

“We are working with governments and partners to find ways to continue to deliver essential services safely, including the provision of personal

Huawei supports Ministry of Education in COVID-19 fight with body sensing camera The Management of Huawei, a leading global ICT company, has donated a set of fully installed body sensing camera to the Ministry of Education.

The support is to enable the Ministry screen all persons coming to its premises as a measure to curb the spread of COVID-19.

The donation is the latest in a series of initiatives and Corporate Social Responsibility (CSR) activities that have been undertaken by the ICT company to support Ghana’s fight against COVID-19 through the use of innovative technology.

Mr. Kweku Essuman Quansah, the Chief Technical Officer, Carrier Business at Huawei Ghana said: “Huawei is committed to helping Ghana win the battle against COVID-19 and we are determined now more than ever to use the full force of our innovative technologies to do this.”

He said it was, therefore, their hope and believe that through this donation the Ministry of Education would be able to automatically detect persons with elevated body temperature thereby controlling the spread by identifying individuals, who may be exhibiting symptoms while ensuring physical distancing.

He said Huawei has over the past 19 years of operating in Ghana supported the education sector immensely through various initiatives, citing the Huawei ICT

Talent Ecosystem, which has trained some 1 500 plus tertiary students to help grow Ghana’s ICT talent pool and CSR initiatives like donation of ICT laboratories to Public Universities in Ghana among others.

Mr. Essuman Quansah also commended government for putting in place robust measures in gradually returning life to normalcy while controlling the spread in other to effectively lives and businesses.

Barbara Ayisi Acher, the Deputy

Minister for Education, expressed gratitude to Huawei for their continuous support of the sector.

She said the donation was very useful to the Ministry as it would help them screen person coming in more easily.

“The Ministry looks forward to more partnership with Huawei during and post COVID-19 to collectively work towards the development of the education sector and the nation as a whole,” she added.

protective equipment to health workers, many of whom are nurses and are women,” said Dr Moeti.

The burden of caring for the sick is also largely borne by women.

Most health workers in Africa are women. Over the past four months, with the Colleges of Nursing in Africa WHO has provided targeted virtual trainings to over 1000 nurses and midwives. In West Africa, this training has been cascaded subnationally using virtual platforms – thus allowing as many nurses as possible to be trained in case management for COVID-19 and infection prevention and control.

WHO works to improve the health of women and girls in Africa by developing guidance on the implications of gender, genderbased violence, and access to sexual and reproductive health.

Together with the World Economic Forum, WHO held a virtual press conference today with Dr Moeti, Winnie Byanyima, Executive Director UNAIDS and Bineta Diop, AU Special Envoy on Women, Peace and Security.

Chinese Embassy supports GCAA in COVID-19 fight The Ambassador of the People’s Republic of China to Ghana, Shi Ting Wang, has donated personal protective equipment (PPE) to the Ghana Civil Aviation Authority (GCAA) as part of the embassy’s support for GCAA’s fight against the deadly COVID-19 disease.

The donation, which was received on behalf of the GCAA by its Director General, Simon Allotey, included 10,000 disposable medical face masks, 10 infrared thermometers, 400 bottles of hand sanitizer, and a thermal temperature scanner.

Expressing gratitude for the support, Mr. Allotey acknowledged China’s cooperation with Ghana in the field of airworthiness regarding the use of Chinese aircraft in the country.

He thanked China for substantially enhancing the development of critical aviation human resources in Ghana through the provision of scholarships for professionals in the sector.

Ambassador Wang, whose duty tour of Ghana is scheduled to end soon, recognised the crucial importance of Ghana-China relations, particularly in areas such as trade, infrastructure development and the provision of scholarship to students, noting that he would always carry the country in his heart.

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MONDAY JUNE 22, 2020

MONDAY JUNE 22, 2020

Risk and Insurance

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COVID-19 is a global battle, but climate change is still the world’s war

A

fter a community is struck by a natural disaster, it’s easy to see the physical damage. Power lines may be downed after a hurricane or tornado. Water stains mark the siding of houses after a flood retreats. While it’s easy to see the physical damage, it can be harder to translate these losses into economic terms. Natural catastrophes, or “Nat CATs”, can result in both visible losses, such as severe property damage, and invisible ones, including prolonged business interruption.

As global climate change causes an uptick in natural disasters, so too will insurance costs climb. The costs of these events can amount to millions in economic losses, many of which are not covered by insurance. Swiss Re’s annual Natural Catastrophes Sigma takes a look at the economic losses caused by natural and manmade disasters in 2019.

The report by the numbers

•

Globally, disaster events cost $146 billion in economic losses in 2019.

• $60 billion of those losses were covered by insurance.

• Natural disasters made up $137 billion of these losses and manmade events accounted for $9 billion in losses.

• Disaster events cost less in 2019 than they did in 2018 when they amounted to $176 billion in total losses, with $93 million of these losses covered by insurance.

• Over the last three years, climate change has caused $650 billion in economic losses globally, according to a report from Morgan Stanley.

Floods Are a Major Uninsured Natural Catastrophe Risk As temperatures continue to warm, Swiss Re reports that Natural Catastrophes will continue to result in major economic losses. One area where losses are expected to

increase is flood insurance. The National Oceanic and Atmospheric Administration of the United States predicts that flooding will be widespread during the spring of 2020 with various places expected to experience moderate flooding.

Despite how global climate change has caused flooding to be widespread, many homeowners don’t have flood insurance. Swiss Reinsurance reports that five out of every six households don’t have flood insurance, and people continue to build in flood plains, despite previous losses. Houses aren’t the only structures at risk due to increased flooding.

Aspects of the nation’s infrastructure, including levees and dams, are being damaged as well.

Nearly $80 billion will be needed to improve and maintain the nation’s levees over the next 10 years, according to estimates from The American Society of Civil Engineers.

Climate change isn’t going away

anytime soon and neither are its risks. A recent survey found that 73% of U.S. brokers consider climate change a top long-term priority despite the risks posed by covid19.

Climate change’s risks aren’t just limited to major natural disasters. As the earth continues to warm, food shortages and the loss of tillable soil are also major risks. Litigation around climate issues could also increase as attribution science progresses and as people look for someone to blame for rapid climate change. While climate change and increased flooding will remain a major risk for years to come, others have begun intensively trying to mapping flood risk more effectively than the American Federal Emergency Management Agency.

Courtney DuChene is a staff writer at Risk & Insurance. She can be reached at duchene@theinstitutes. org.

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MONDAY JUNE 22, 2020

MONDAY JUNE 22, 2020

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Sustainable development starts with children

HELEN CLARK

The emergence of teen climate activists like Greta Thunberg is no gimmick. In fact, to galvanize climate action and achieve sustainable development, children must be put at the center of national strategies, and giving them a healthy future must be placed above all other concerns “Our house is on fire,” warned the teenage climate activist Greta Thunberg at last year’s World Economic Forum meeting in Davos.

Her pointed words – accusing adults of sitting idly by as the planet burns – quieted a roomful of global leaders, inspired young activists worldwide, and underscored the critical importance of putting children at the center of global action to build a better future.

Climate change is happening now.

That was apparent in Australia’s recent unprecedented bushfires, in which 18 million hectares burned and an estimated one billion animals died. It was also reflected in India’s 2019 heat wave, among its longest and most intense in decades. And a warming planet is contributing to the global spread of dengue, a mosquito-borne viral infection.

Yet, even as the clock runs out on our ability to avert a catastrophe, global climate action is not gaining the needed momentum.

As Thunberg and other youth activists have underscored, it is our children who will bear the brunt of this failure, as they inherit an increasingly inhospitable planet.

Climate change is not the only area where we are failing our children. Predatory commercial

marketing that targets children and their caretakers is contributing to the widespread consumption of unhealthy products, such as alcohol, tobacco, e-cigarettes, and sugar-sweetened beverages. The global economic losses associated with the inappropriate use of breast-milk substitutes – associated with lowered intelligence, obesity, and increased risk of diabetes and other non-communicable diseases – amount to an estimated $302 billion.

Children are our most precious resource, and they deserve to live long, healthy, and productive lives. To determine how to enable them to do just that, the World Health Organization, UNICEF, and the Lancet recently convened a landmark commission – which I cochaired, along with Awa Marie CollSeck, Minister of State in Senegal – that brought together 40 experts on child health and wellbeing.

As the commission’s report – “A Future for the World’s Children?” – notes, the key is to invest in people while they are young. Evidence shows that hungry children have poorer health, worse educational outcomes, and earn less as adults.

Children who are exposed to violence are more likely to commit violence.

Conversely, children who receive proper nutrition, appropriate care, and quality education grow up to be healthy, productive citizens, who are presumably better equipped to raise healthy, productive children of their own.

In short, investing in children today brings lifelong, and even inter-generational benefits. This brings value to all of society. For example, a school-building program undertaken in Indonesia in 19731979 has helped to boost today’s

living standards and tax revenues.

The return on investment in children is remarkably high. In the United States, every dollar invested in a preschool program was found to bring $7-12 in societal benefits per person, via reductions in aggressive behavior and improved educational attainment. In lower-middle-income countries, every $1 invested in maternal and child health can bring over $11 in benefits.

But we should not pursue such investments only because of the numbers. If we can’t protect our children’s futures, what is the measure of our humanity?

The WHO-UNICEFLancet Commission calls upon leaders at every level, from heads of state and government to civil-society and community leaders, to place children at the center of strategies to achieve sustainable development.

This will require long-term vision, with presidents and prime ministers ensuring that sufficient funds are directed toward the needed programs and supporting effective collaboration among ministries and departments.

Every sector has a role to play in building a world fit for children. For example, traffic accidents are the number-one killer of children and young people aged 5-29, implying an urgent need for interventions to improve road safety. Likewise, with 40% of the world’s children living in informal settlements – characterized by overcrowding, poor access to services, and exposure to hazards like fires and flooding – housing reform is essential.

Some countries recognize the importance of boosting public investment in children. In New

Zealand, my home country, Prime Minister Jacinda Ardern’s government has introduced a “world-first” wellbeing budget, which puts people – especially society’s most vulnerable, including children – first. The budget allocates billions of dollars for mentalhealth services, child poverty, and measures to tackle family violence.

But New Zealand continues to emit far too much carbon dioxide – 183% of the level needed to meet its 2030 target and adhere to the Paris climate agreement, according to our report. Other rich countries – such as Norway and South Korea – are doing similarly well in helping children flourish today, while continuing to emit far too much CO2 to ensure that children tomorrow can do so as well. Meanwhile, some less wealthy countries – such as Armenia, Costa Rica, and Sri Lanka – are on track to reach emissions targets by 2030, and are doing a fair job of ensuring that their children are healthy, educated, and safe.

“I don’t want your hope,” Thunberg told world leaders in Davos. “I want you to panic … and act.” She is right.

If we are to bequeath a sustainable future to Thunberg’s generation, and those that follow, our leaders must act courageously – and immediately.

This is the stuff legacies are made of.

Helen Clark, Board Chair of the Partnership for Maternal, Newborn, and Child Health (PMNCH), is a former prime minister of New Zealand and administrator of the United Nations Development Programme. (project-syndicate.org)

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MONDAY JUNE 22, 2020

MONDAY JUNE 22, 2020

Aviation

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SA Express liquidation on hold as several potential investors emerge Provisional liquidators of South African regional carrier SA Express are attempting to find a buyer for the airline, claiming that they are engaging with six or seven parties which have expressed interest in the company.

Their effort follows court approval on 15 June to extend their powers, in order to explore the possibility of attracting investment in the airline.

Final liquidation orders for SA Express – which would have simply resulted in the dismantling of the company and disposal of its assets – have been postponed until 6 September, giving the provisional liquidators a three-month window to secure a deal.

One of the liquidators, Aviwe Ntandazo Ndyamara, disclosed the situation as he belatedly testified to the parliamentary standing committee on public accounts on 17 June.

The liquidators had previously been due to appear before the committee but failed to show – apparently due to a communication mix-up – and the committee chair, Mkhuleko Hlengwa, had threatened to subpoena them.

Ndyamara stressed that there had been “no intention” to undermine the process and that the liquidators had wanted to provide a proper update on the SA Express situation.

He told the committee that interest in the airline had emerged from several potential investors.

“There are six interested – in fact, from this morning, there’s about seven interested parties that we’re

currently engaging,” said Ndyamara.

“The next route for us is to proceed with an investment or a sales process – a transparent process where we either attract an investor or, alternatively, we pursue the disposal of the assets of the airline in order to satisfy creditors’ claims.”

While a final liquidation order has been pushed back, Ndyamara pointed out that the airline holds two licences which are scheduled to expire on 31 July. It also has an aviation security training organisation approval which expires on 31 December.

He says the liquidators aim to engage a sale or investment process before the expirations.

The situation is further complicated

by SA Express aircraft and engine lease agreements amounting to R22.5 million per month, plus monthly office and hangar leases of R2.2 million.

Ndyamara says that these lease agreements are “onerous” and “immediate consideration” must be given to their termination. But he adds that this could have an impact on the licences.

“This is critical for us,” he says.

SA Express was placed under business rescue proceedings on 6 February and then into provisional liquidation on 28 April, with Ndyamara and other provisional liquidators appointed on 13 May. Ndyamara says the team’s priority was to reduce the costly R1.8 billion ($104 million) security bond put in place to protect the company’s assets. This involved carrying out an independent market assessment, which evaluated the assets at R103120 million and reduced the bond to R113 million.

SA Express had around R800,000 in cash reserves in its bank accounts, which was ring-fenced.

Ndyamara says that, at the time of the provision liquidation order on 28 April, employee salaries for March and April were still outstanding.

Employee contracts were immediately suspended as a result of the order. Outstanding remuneration, says Ndyamara, will be dealt with as claims against the company.

While employees have special preference under insolvency law, however, they will only be paid after secured creditors’ claims have been settled.

“At this stage it is unclear if there will be residue for payment of the employee claims,” says Ndyamara.

Chair Mkhuleko Hlengwa says that, following the briefing on SA Express and the previous update on South African Airways’ business rescue, the committee members have resolved to schedule hearings with former boards of directors of stateowned entities.

He says the briefing suggest that the collapse of SAA and SA Express might have occurred, in part, as the result of “lack of governance”.

“Questions were raised about the role played by the former boards of directors in ensuring proper governance and effective consequence management at stateowned companies,” he adds.

Committee members also plan a hearing with the government’s department of public enterprises to “ascertain the loopholes” which, Hlengwa says, have contributed to “failure of effective oversight” of these firms. “[The committee] is also concerned with the movement of senior executives from one entity to another under the department’s watch and wants the department to justify these recruitment processes,” he adds.

Representatives of South Africa’s treasury and anti-corruption lawenforcement agencies will similarly be invited to brief the committee, as part of continuing probes into alleged cases of financial mismanagement.

(Source: Flight Global)

Delta Airlines mask wearing requirement Wearing a mask is one of the most important ways customers and employees can help prevent the spread of the virus while flying, according to medical experts including the Centers for Disease Control & Prevention and the World Health Organization. Here’s what you need to know about Delta’s mask-wearing requirement that’s been in effect since May, and why it’s so important customers comply with it: Requiring masks is an extension of our safety commitment.

Enforcement is a responsibility we take seriously.

Remaining seated when taxiing and wearing a seat belt during take off are non-negotiable safety measures to protect individuals – and those surrounding them – when flying.

We take our mask requirement just as seriously. That’s why customers are not allowed to board a Delta aircraft without wearing a mask and must follow crew member instruction to properly wear a mask in flight. Those who choose not to comply with this or other

safety requirements risk future flight privileges with Delta, which is in keeping with the face covering enforcement policies Airlines for America recently announced.

While there’s no single way to reduce the spread of COVID-19, masks provide an important, consistent layer of protection.

Delta has implemented layers of

protection from check-in to baggage claim to deliver a new standard of cleanliness, more space and safer service and care for customers and employees alike. When added to measures such as sanitizing aircraft surfaces with electrostatic spray before 100% of flights, blocking middle seats while capping aircraft capacity at 60% in main cabin, and changing aircraft HEPA filters twice as often as recommended, mask-wearing provides a consistent layer across all travel touch points that can help prevent the spread of COVID-19.

We’re making customers aware of our requirement before and during the journey.

While we double down on our safety commitment of ensuring customers wear their masks as required, we are making sure customers are aware of and acknowledge this requirement by adding even more digital notifications, signage and announcements starting before you leave home and across your journey with us.

(Source: Delta Airlines)

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MONDAY JUNE 22, 2020

MONDAY JUNE 22, 2020

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Boris Johnson’s new-model colonial policy

BY ARKEBE OQUBAY British Prime Minister Boris Johnson’s decision to merge the United Kingdom’s Department for International Development (DfID) with the Foreign and Commonwealth Office is a deliberate slap in the face to developing countries. Worse, it comes just when African countries are crying out for international support to fight COVID-19 and its economic fallout.

Johnson has made clear that his post-Brexit vision of a “swashbuckling” UK leaves scant room for commitments to Africa or the wider developing world. DfID’s absorption into the bowels of the country’s diplomatic apparatus represents a reversal of the United Kingdom’s landmark 1997 policy shift vis-à-vis Africa, “Eliminating World Poverty – A Challenge for the 21st Century.” By putting the agency directly under the control of the foreign ministry, Johnson is signaling that international development will play second fiddle to foreign policy and security concerns.

It’s an odd decision, considering that an economically prosperous Africa, with its young and growing population, is precisely the kind of trade partner that Johnson needs to make his idea of a “Global Britain” anything other than a fantasy. Instead of recognizing Africa’s potential, he seems to see abandoning the continent as a means of cutting costs and paying lip service to national security. In a recent statement, Johnson argued that: “DfID outspends the Foreign Office more than four times over and yet no single decision-maker in either department is able to unite our efforts or take a comprehensive overview. We give as much aid to

Zambia as we do to Ukraine, though the latter is vital for European security. We give ten times as much aid to Tanzania as we do to the six countries of the Western Balkans, who are acutely vulnerable to Russian meddling.”

Beyond these geopolitical arguments, Johnson is also justifying the merger in the name of “getting maximum value for the British taxpayer.” Expressing fears of “an inherent risk of our left and right hands working independently,” he has decided that foreign aid will now be “overseen by the National Security council.”

Few people in Africa will be surprised at Johnson’s actions.

After all, during his career he has often demonstrated contempt for Africa and Africans. He has spoken of Africans’ “watermelon smiles” and of “flag-waving piccaninnies” greeting Queen Elizabeth. But even worse than these nakedly racist comments is his 2002 article in the Spectator (which he was editing at the time, even as a member of Parliament) in which he said of Africa: “The continent may be a blot, but it is not a blot upon our conscience. The problem is not that we were once in charge, but that we are not in charge anymore.”

Johnson claims that he is merely following the examples set by New Zealand, Australia, and Canada. But those countries’ historical ties to Africa are miniscule, and they have never played more than a marginal role in the continent’s development.

A better comparison would be to Germany’s Ministry of Economic Cooperation and Development, which has played a critical role in Africa since its founding in 1993 and is ramping up its investment there.

By curtailing the UK’s efforts, Johnson is undermining his

own economic growth agenda, as well as limiting the scope for collaboration on sustainable development goals. His recent statements are contradicted by independent studies touting DfID’s excellent results-oriented culture and exemplary performance over the last two decades. Even if Johnson’s decision turns out to be reversible, it is past time that British policymakers end the hypocrisy they have shown toward Africa – touting the continent as a partner while permitting visa discrimination against African visitors to the UK (to cite one recent example).

I have had the privilege of witnessing the remarkable progress that can be made through genuine partnerships with DfID, which resulted in significant contributions to Ethiopia’s development goals.

Between 1997 and 2016, the agency was a key catalyst for Ethiopia’s development, and the country benefited from the leadership of both Labour and Conservative governments under Tony Blair, Gordon Brown, and David Cameron.

The fact that all three have jointly condemned Johnson’s decision tells us all we need to know about its wisdom.

In addition to supporting poverty reduction and United Nations development goals, DfID assistance has also lent momentum to industrialization and reform in Africa. Again, Ethiopia is a case in point. Having benefited from DFID’s efforts to reduce poverty and create the conditions for economic transformation, it is now the world’s fastest-growing economy.

DfID has shown that development assistance is more effective when it is aligned with recipient countries’ own development plans. Such arrangements also offer insulation against political or diplomatic

contingencies that threaten to derail development. DfID’s partnerships in Africa have succeeded precisely because they are based on mutual interest, putting the recipient country in the driver’s seat.

Developed countries’ international development policies should be guided by two overarching principles. First, assistance must serve developing countries’ own long-term interests. Fortunately, in addition to fostering growth, institutional arrangements that promote collaboration and coordination with recipient countries will ensure the best value for taxpayers in source countries.

Second, development partnerships should not be used as mere instruments of geopolitical strategy.

That is why it is important to have an independent institution to oversee development assistance; otherwise, there will always be some potential for undue political pressure.

A post-Brexit UK has many critical choices to make. Will it strengthen economic cooperation with Africa, acting as a genuine partner to a nearby continent with which it has strong historical ties (even if these are painful for the continent)?

Or will it abandon the exemplary connections with developing countries it has built since 1997 and play only a peripheral role? In a world of rising economic powers such as China, it is in the interests of both the UK and Africa to maintain – and deepen – existing partnerships.

Arkebe Oqubay is a senior minister and Special Adviser to the Prime Minister of Ethiopia. He is co-author, most recently, of African Economic Development: Evidence, Theory, Policy (Oxford University Press, 2020).

Copyright: Project Syndicate, 2020. www.project-syndicate.org

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MONDAY JUNE 22, 2020

MONDAY JUNE 22, 2020

Automobile

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The electric car battery boom has screeched to a halt, for now Three decades of advances took lithium-ion batteries from powering handheld Sony camcorders to propelling Tesla’s popular electric vehicles. The rapid rise is facing a major test in the Covid-19 pandemic.

Demand for rechargeable batteries will decline for the first time this year, as sales of electric cars—the biggest user—slump with novel coronavirus pummeling the auto industry, according to BloombergNEF forecasts. Battery shipments to carmakers are forecast to fall 14% in 2020, and the effects of the slowdown are seen lingering into next year.

Major producers, including South Korea’s LG Chem Ltd., a supplier to Tesla Inc. and General Motors Co., have cut annual sales forecasts. Analysts expect the industry’s planned vast expansion of manufacturing capacity to slow down. Startups burning through cash as they work on potential breakthrough technologies are bracing for a tougher sell to secure funds.

And yet, from Silicon Valley laboratories to China’s Contemporary Amperex Technology Co. Ltd., the world’s

top producer, optimism over the lithium-ion battery’s longer-term outlook is undimmed. Batteries, say automakers and utility companies, are still on track to become more powerful, cheaper and ubiquitous, not just in passenger vehicles, but also in additional forms of transport, consumer electronics and largescale energy storage.

Despite short-term pressures, Zeng Yuqun, chairman of CATL, said there is “great confidence in the long-run.” In less than a decade, his company has grown to lead its industry: CATL’s sales rose 90% in 2019, according to BloombergNEF. Lithium-ion battery demand has more than doubled since 2015 and remains on track for about a ninefold expansion from last year to the end of the decade. The sector is also forecast to keep lowering costs. Battery prices plunged 87% in the past 10 years, pushing plugin electric cars to near sticker-price parity with gas guzzlers.

The pandemic might even prove to be an opportunity, with at least some governments, including those of Germany and France, using virus recovery funds to help accelerate a transition from internal combustion

engines to battery-powered alternatives. France will offer about 8 billion euros ($9 billion) to its auto sector to bolster support for electric vehicles; Germany’s stimulus package includes about 5.6 billion euros for the sector and will require gas stations to install charging units.

“This is a historic plan to confront a historic situation,” French President Emmanuel Macron said on May 26.

There are other sources of

optimism. Volkswagen AG on June 16 announced an additional investment of $200 million in QuantumScape Corp., a battery technology startup founded by former Stanford University researchers, after committing $100 million in 2018. In May, the carmaker became the biggest shareholder of Chinese battery producer Guoxuan High-Tech Co. Ltd.

Automakers see untapped market as Japanese ‘paper drivers’ ease onto the roads Ryota Kawamata hadn’t driven for more than a decade, but as Japan’s COVID-19 crisis worsened in May, his employer near Tokyo rented him a car so he wouldn’t have to use public transport.

The 32-year old engineer, a selfdescribed “poor driver”, now wants to buy his own car.

“There are places where I can’t go without a car,” said Kawamata, who recently paid 30,000 yen ($280) for a five-hour refresher course to hone his driving skills.

As Japan emerges from its coronavirus lockdown, restaurants and offices are practicing social distancing, but public transport doesn’t require it. People like Kawamata, known as “paper drivers” because they have a licence but don’t own vehicles, are an untapped pool of potential car buyers.

They could give Toyota Motor Corp (7203.T), Nissan Motor Co Ltd (7201.T) and others a small but much-needed boost amid a global slump in car-buying.

Demand from lapsed drivers elsewhere, such as the United States, China and other countries where social distancing has become the norm, could also help soften the coronavirus blow for car makers.

There are no statistics about the number of such drivers in Japan, but about 45 million people have gold-class driving licences, issued to people with no traffic violations for at least five years, according

to Japan’s National Police Agency.

Many of those drivers have simply not been on the road.

Akitake Sawamura, who manages a driving school that offers refresher courses to inexperienced drivers, estimates that around two-thirds of gold licence holders are paper drivers, who have become more numerous over the years as more Japanese use public transit.

Over the past three decades, car sales in Japan have fallen from a peak of 7.8 million vehicles in 1990 to 5.2 million last year.

“There’s been a pick-up in people attending courses since the emergency was declared in April,” Sawamura said. Recent students, he said, have included a healthcare worker treating COVID-19 cases and an office worker who moved out of Tokyo and bought a car to get around his new town after he began telecommuting.

In a sign that the roads may be more crowded, demand for parking, particularly in central Tokyo, has increased during the coronavirus crisis, according to Akippa, a smartphone service that searches for parking spaces.

Demand for spaces more than doubled nationwide and jumped by five times in parts of Japan’s capital during the state of emergency declared in April compared with February, before the coronavirus crisis took hold, according to Akippa spokeswoman Ayako Ishikawa.

“People are still commuting to work

by car and they have been joined by others since the emergency ended,” Ishikawa said.

The government has noticed the increase in drivers but says it is not concerned about congestion or other issues.

“The number of vehicles on the roads is currently less than it was before the coronavirus pandemic began. Going forward there will likely be some impact,” said a roads bureau official at the Ministry of Land, Infrastructure, Transport and Tourism. “We don’t yet know what that balance will be between new drivers and those not travelling

because of teleworking.”

Among the people returning to the road is Kawamata’s co-worker, Keisuke Kai, 25, who also drives a rented car to work. He enjoys the convenience, but says he is “hesitant” about buying a car because of the cost, including parking fees.

Dealerships in and around Tokyo hope paper drivers will eventually take that step.

“We would welcome any increase in the number of drivers on the road,” a salesman at a Toyota dealership told Reuters.

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MONDAY JUNE 22, 2020

MONDAY JUNE 22, 2020

Energy

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World’s highest population without electricity lives in Nigeria – Report

A

report co-authored by the World Bank has disclosed that Nigeria now has the highest number of people lacking electricity access in the world with a total of 85 million Nigerian citizens. The report was co-authored by Extractives Global Programmatic Support, EGPS, and the global Extractive Industries Transparency Initiatives, EITI, on the works of the Nigeria Extractive Industries Transparency Initiative, NEITI, which they lauded.

Both entities explained that the works of NEITI had set enviable standards for reporting the activities of the country’s extractive industries.

They, however, noted that the works of NEITI on identifying and helping the country to recover misplaced extractive revenues should contribute to farreaching reforms that would give the un-electrified population access to electricity.

“Nigeria now has the highest number of people lacking electricity access in the world, at a total of 85 million Nigerian citizens. Greater transparency and accountability should contribute to an overall reform process that helps Nigerians gain crucial access to electricity and accelerates the government’s economic recovery and growth plan,” they stated in the article.

According to the report, the bank’s EGPS is multi-donor trust fund, which supports developing countries to govern their oil, gas and mineral resources in a sustainable and transparent manner to reduce poverty and boost shared prosperity. It explained that Nigeria has made good improvements in the governance of its oil sector, bringing greater transparency and publishing credible and trusted data through the NEITI. “Reports, policy briefs and other knowledge products published by the Nigeria Extractive Industries Transparency Initiative, NEITI, have been a catalyst for ongoing reforms and have helped the country to identify about USD 20 billion in recoverable revenues, and to recover approximately USD 3 billion into government coffers to date,” it added.

Nigeria, it noted, is one of the first oil-producing developing countries to engage with the EITI and enacted the NEITI Act in 2007, which is devoted to improving transparency, accountability and good governance through EITI implementation.

“The country’s early adoption of the EITI has seen NEITI become a ‘one-stop shop’ for information and accurate data across the extractive sector value chain. Previously, the industry was opaque, with little reliable public information on production levels, crude oil losses, and government investment in the upstream projects or downstream information.

“The EITI in Nigeria encountered some initial hurdles in publishing accurate and timely reports on key sector data, such as production, revenues and governance processes. Some reports were delayed by several years, meaning that those who could hold the state accountable for oil revenues – such as investors, companies, civil society organisations, and the media – received data only several years after the reporting period.

“With the help of the World Bank’s Extractives Global Programmatic Support Trust Fund, NEITI has now succeeded in producing its reports in a much more timely and efficient manner. Most recently, NEITI achieved a key milestone: publishing its oil and gas report for 2018 in March 2020, nine months ahead of the EITI’s reporting deadline.

This is a first for Nigeria and an improvement in the effectiveness of its reporting under the EITI,” the article stated.

It also noted that from NEITI’s findings, it has been able to publish policy briefs that have raised awareness on key issues such as the debts owed the country by the Nigerian National Petroleum Corporation (NNPC) and losses from an outdated oil production regulation. “A 2017 policy brief on unremitted funds highlighted more than USD 20 billion, which the national oil company, the Nigerian National Petroleum Corporation, NNPC, should have contributed to government revenues, highlighting the urgent need for oil sector reform.

“The brief received widespread attention, generated a national dialogue, and caught the attention of decision-makers. Another policy brief highlighted the failure of the Federal Government to adjust the royalty in production-sharing contracts in line with the price of oil and inflation, as provided in the Deep Offshore and Inland Basin Production Sharing Contract Act. The brief contributed to an amendment to the law, which was then enacted eight months later.”

Electricity exists in nature Electricity in nature and in us, as part of nature, does not present any danger or harm. What about manmade electric currents, asks David Marinelli.

The word electricity is derived from Latin and Greek electrum and electron meaning amber.

This by reference to amber’s magnetic qualities. Amber is today a semi-precious gemstone that is actually fossilized tree resin. It was William Gilbert, an English scientist born in 1544 who coined the term ‘electricity’. Electricity is the presence and flow of an electric charge in one direction. An electric charge can either be static or otherwise flow as an electric current.

All matter on Earth is made up of atoms. Every substance can be broken down ultimately to atoms but no further. Atoms are extremely small and certainly not visible to humans – for example there are an estimated 100 trillion atoms in a human cell. Human understanding is that atoms are made up of protons, neutrons and electrons.

Protons and neutrons make up the nucleus (centre) of the atom.

Electrons are positioned around the nucleus and are bound to the nucleus by electromagnetic forces.

The number of electrons in an atom can change as electrons can move between atoms. This flow of electrons is the electric current.

Humans did not invent what we call electricity. Electrons have moved from atom to atom in nature for an eternity before archaic humans started walking on two legs some hundreds of thousands of years ago. What we have done as modern humans is understand that the flow of electrons creates an energy that makes things move.

We then recklessly exploited this characteristic to become the first species to singlehandedly bring about a mass extinction of life on Earth.

What we call electricity is everywhere in nature, in all habitats and life forms What we call electricity is everywhere in nature, in all habitats and life forms and of course also in the human body. It is fundamentally a precious and vital biological process. Human cells are specialized to conduct electrical currents. This energy is required for the nervous system to send signals throughout the body, including the brain, making it possible for us to move, think and feel. This internal electric current is critical for all our bodily functions and underpins life. It is the language that cells and organs use to communicate in order to keep it all functioning well.

Human cells generate and control electrical currents using elements, like chloride, sodium, potassium, calcium, bicarbonate and magnesium. When these minerals

dissolve in fluids (mainly water), they form electrolytes that are positive or negative charged ions.

Almost all of our cells can use these charged ions to generate electricity.

Incidentally 60 per cent of our body is water and this water is found our cells, in the space between our cells and in our blood.

Our entire body is made of different types of cells, many tens of trillions of them. A cell is the smallest complete organism containing fundamental molecules for life.

Molecules are groupings of atoms.

Cells are intelligent. The contents of the cell are enclosed in a protective membrane that selectively denies or allows entry to the interior of the cell. The cell membrane also acts as a way for the cell to generate electrical currents. Resting cells are negatively charged on the inside, while the outside environment is more positively charged. Cells can achieve this charge separation by allowing charged ions to flow in and out through the membrane.

The flow of charges across the cell membrane is what generates electrical currents.

Cells control the flow of specific electrically charged elements across the membrane using proteins that sit on the cell surface. These proteins create an opening for certain ions to pass through and for this reason are called ion channels. When a cell is stimulated, it allows positive charges to enter the cell through open ion channels. The inside of the cell then becomes more positively charged, which triggers further electrical currents that can turn into electrical pulses, called action potentials.

Our bodies use certain patterns of action potentials to initiate the correct movements, thoughts and behaviors.

Electricity in nature and in us, as part of nature, does not present any danger or harm. It has evolved with all life forms on Earth over hundreds of millions of years. On the other hand, man-made electric currents and radio and electromagnetic frequency radiation is another story altogether.

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MONDAY JUNE 22, 2020

MONDAY JUNE 22, 2020

News

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Allianz Life donates to hospitals in 5 regions Allianz Life Insurance has gone to the aid of some selected health institutions nationwide with the provision of some medical essentials needed in the fight against the coronavirus pandemic.

The organization donated the items to hospitals in five regions across the country in a move that is expected to empower the institutions to discharge their duties in a safe manner.

Commenting on the donation exercise, CEO for Allianz Life Insurance, Gideon Ataraire, said the company will continue to demonstrate its commitment to ensuring that COVID-19 is dealt with to its logical conclusion.

“This pandemic requires our collective effort to deal with. As we have seen in recent times, our health professionals have put their lives on the line in combatting this virus. As a corporate institution, we appreciate this selfless duty and we also want to contribute our quota to make sure this virus is defeated at all cost,” he stated.

Five hospitals in Western, Ashanti, Bono, Eastern and Greater Accra have received the donation of personal protective equipment such as face masks, reusable medical overalls and other items such as Veronica buckets, sanitizers and

soap among other essential items from Allianz Life Insurance.

Commenting on the gesture

by Allianz Life Insurance, Nurse Manager at European Hospital in Takoradi, Hannah Cromwell called on other corporate organizations to come to the aid of frontline workers.

“The items presented by Allianz Life are part of our needs in this era and will go a long way in terms of health delivery in the fight against COVID-19”, she said.

Similar donations were made specifically to the Eastern Regional Hospital, St. Michael’s Catholic Hospital in Ashanti Region, the Bono Regional Hospital & Tema General Hospital.

Insurance cover for frontliners This latest donation of essential items for fighting COVID-19 to hospitals comes on the back of Allianz Life’s provision of life insurance cover to frontline medical professionals in three of the country’s largest hospitals.

Personnel at the selected health institutions which include 37 Military Hospital, Korle-Bu Teaching Hospital in the Greater Accra region, and the Komfo Anokye Teaching Hospital in the Ashanti region have been given a collective life cover up to GHS8.44 million.

The package covers 112 medical

The donation made to Tema General Hospital

doctors and 620 nurses who work in the emergency department and other key departments in the three health institutions. The 12-month cover insures the medical professionals against incidents that may happen over the period regardless of whether they are COVID-19 related or not.

These medical professionals are expected to receive compensation in the event of any incident that may render them unable to perform their duties. Again, their families are assured of compensation from Allianz Life Insurance in the unfortunate event of their death.

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MONDAY JUNE 22, 2020

MONDAY JUNE 22, 2020

Market Watch

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BY AGYEI SAMUEL OFOSU

USD/CAD STRUCTURE •

Leading impulsive wave

PREVIOUS/FORECAST •

•

**price @ time of analysis:1.34804

USDCAD successfully completed its abc zigzag correction as previously forecasted beginning a new impulsive swing Expecting price to continue buying in a 12345 leading impulsive wave manner

**Current price @ time of analysis:1.35826

EUR/USD STRUCTURE •

Equidistant Channel

PREVIOUS/FORECAST

**price @ time of analysis: 1.13310

•

The Euro tested the upper boundary of the equidistant channel as it reached 1.14905 price region

•

Expecting sell continuation to around 1.07823 price region

**Current price @ time of analysis: 1.12140

GBP/USD STRUCTURE •

Impulsive wave

PREVIOUS/FORECAST

**price @ time of analysis: 1.26221

•

GBPUSD reached 1.28000 as previously forecasted to complete wave 3 before beginning its correction

•

Expecting buy from around 1.24000 price region to about 1.31000 price region in formation of actionary wave 5

**Current price @ time of analysis: 1.24135

XAU/USD STRUCTURE • Equidistant channel PREVIOUS/FORECAST • Gold appears to be trading within an equidistant channel with price bouncing off the upper boundary trendline •

**price @ time of analysis: 1736.05

Expecting sell to around 1682.44 price region followed by a quick retracement before sell continuation to around 1570.00 price region

**current price @ time of analysis: 1729.16

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MONDAY JUNE 22, 2020