Business24 Newspaper (June 8, 2020)

EDITION B24 | 58

MONDAY JUNE 8, 2020

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SOEs caught breaching PFM Act GRA denies alleged ICUMSrelated revenue leaks at the ports MORE ON PG 3

BY PATRICK PAINTSIL

State-owned companies have been grappling with poor corporate governance, a situation Stephen Asamoah Boateng, Director-General of SIGA, urgently wants to address

BY NII ANNERQUAYE ABBEY

Not a single one of the 48 state-owned enterprises (SOEs) met the deadline for submitting their 2018 audited financial statements to the Minister of Finance, a situation which contravenes the Public Financial Management (PFM) law passed in 2016.

Although the PFM law requires that SOEs submit audited financial statements to the Finance Minister not later than four months after the end of each financial year, none of the companies covered in the 2018 State Ownership Report met that deadline.

In addition, six SOEs are yet to submit any audited financial statements since 2016.

The report, published by the Finance Ministry last week, also cited 22 joint-venture (partly state-owned) companies as flouting the statutory deadline for submission of audited financial statements to the Ministry.

Although the PFM Act further requires SOEs and other state entities (OSEs) to submit quarterly reports on their operations to the Finance Minister, the report revealed that only 8 out of 87 entities met that requirement in 2018.

Section 98 of the PFM Act states that any person who refuses or fails to produce or submit any information required under the act commits an offence and, where no penalty

Gov’t pledges commitment to a ‘green economy’ as part of recovery plan

AMG: A Ghanaian success story

BY EUGENE DAVIS

BY ERNEST AKWESI APPIAH

MORE ON PG 2

Slow recovery predicted for oil sector MORE ON PG 3

BY BENSON AFFUL

2,160 stranded Ghanaians abroad to be evacuated

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:

BY EUGENE DAVIS

GHc 5.13*

INTERNATIONAL MARKET BRENT CRUDE $/BARREL

42.30

NATURAL GAS $/MILLION BTUS

MORE ON PG 5

MORE ON PG 9

MORE ON PG 5

1.78

GOLD $/TROY OUNCE

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:

17.07

Copyright @ 2020 Business24 Limited.

All Rights Reserved.

Tel: +233 030 296 5297 editor@thebsuiness24online.net

NEWS/EDITORIAL

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EDITORIAL

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Wash your hands 2

Cover your cough 3

Time to build a comprehensive green economy When the last tree dies, the last man also dies is a phrase that highlights the role of nature in our very existence and that means we fail to protect the environment at our own peril.

Environmental analysts have suggested that economic recovery from this global health crisis must put the restoration of nature at its heart—because that is the only way the country can continue to power its human endeavour sustainably, given that if nature is protected, the country is protected.

This assertion is true on all sides that one may want to focus on because we interact with nature in our everyday activities.

Investing in green sectors would

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LIMITED Copyright @ 2019 Business24 Limited. 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)

other commercial actions that tend to pollute the environment.

Any serious economy must build upon this opportunity to roll out enviro-friendly initiatives and programmes, which in most cases are more sustainable and cost effective.

Our revival from the shocks of the virus pandemic will be better achieved with green solutions.

It is time to invest in green innovations and technologies that offers convenience and safety of human lives while keeping the environment intact and secure.

SOEs caught breaching PFM Act (…CONTINUED FROM COVER )

Wear a mask

deliver long-term stability in the global economy, experts have advised.

It is also obvious that implementing a comprehensive green economy results in improved human well-being and social equity, while significantly reducing environmental risks and ecological scarcities.

Failure to protect our environment could have dire impact on every facet of our economy and a cue could be taken from how climate change is impacting on agriculture and rainfall patterns.

The Covid-19 pandemic has seen nature resetting as a result of the absence of industrial activities and

is provided for the offence, is liable on summary conviction to a fine of not less than 150 penalty units and not more than 250 penalty units, or to a term of imprisonment of not less than six months and not more than two years or to both.

The Finance Minister, Ken Ofori-Atta, in a foreword to the report described it as a vital monitoring tool for the ministry to assess the performance of the SOEs and OSEs in particular, as well as assess whether or not the state’s partnership with the private sector is delivering the required results.

While the ministry decried the general abysmal financial performance of SOEs, it did not indicate whether punitive measures would be instituted against those responsible for flouting the provisions of the PFM Act.

For companies which the state jointly owns with other private interests, there was a marked improvement in their financial performance over the previous year.

Out of the registered 42 jointventure companies ( JVCs), 25

submitted their financial statements, posting an aggregate net profit of GH¢1.4bn in 2018. This represented a 598.4 percent improvement from the combined net loss of GH¢272.2m in 2017.

DIGITAL NEWSPAPER

Loss-making SOEs The report, which covered 36 out of the 48 SOEs, revealed that the entities made a combined loss of GH¢3.1bn in 2018, a 150.5 percent deterioration over the previous year, when SOEs recorded a net loss of GH¢1.2bn.

“The financial performance of SOEs is a major concern to us, both from the standpoint of the state as an investor, which expects commensurate returns for its investments, and as the bearer of the fiscal risks from SOEs,” Mr. Ofori-Atta said in his foreword.

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GRA denies alleged ICUMS-related revenue leaks at the ports

BY PATRICK PAINTSIL

The Ghana Revenue Authority (GRA) has denied allegations by policy think tank IMANI Africa that the country’s ports have been dedigitised with the deployment of the Integrated Customs Management System (ICUMS) and that the system was poorly assessing goods, which could lead to loss of government revenue.

In a statement copied to Business24, the state tax collector described the claims of the think tank as “disparaging, inaccurate and misleading attacks on its newly introduced system”.

“The assertions [of IMANI Africa] are misleading, and regarding the few challenges faced thus far, all efforts are being made to resolve the issues with all the urgency that they deserve. We welcome any constructive criticisms that may be offered by IMANI in as much as they would contribute towards the successful implementation of ICUMS,” said the statement signed by its Assistant Commissioner of Communications and Public Affairs, Florence Asante.

IMANI Africa had issued a circular in which it alleged that the ports had been de-digitised because freight forwarders and clearing

agents had been directed to provide photocopies of trade documentation in order to clear their cargoes.

The think tank also claimed that ICUMS had no pricing data against which Customs could determine current prices and respective taxes payable to the state, for which reason a vehicle that cost an importer about GH¢12,000 was valued at GH¢6,000, while an imported 2016 Chrevolet was cleared for GH¢14.

But the GRA indicated in its statement that it would be “inaccurate to state that ICUMS has no established values for customs valuation”.

“GRA valuation methods are based on section 67 of the Customs Act 2015, Act 891, and the World Trade Organisation (WTO) valuation protocols. Over time, GRA has built a transactional pricing database that serves as a reference for valuation.

ICUMS has the transactional pricing database fully integrated into its system,” it argued.

According to the GRA, the instance given of a Chevrolet being cleared for GH¢14 was a case of fraudulent activity by an agent that was detected, with the agent subsequently queried and blocked.

“The agent falsely declared US$1 as the value for the vehicle, and claimed that he had paid the duty in GCNET and therefore used the CPC 40D23 to process the transaction.

The GH¢14 was the summation of the Ghana Shippers Authority fee of GH¢9.00 and Ministry of Trade and Industry Import Declaration Form (IDF) fee of GH¢5.

“The system detected the fraudulent transaction at the compliance stage and raised a query that very day. Till date the agent has not responded to the query,” the statement narrated.

With regard to the manual goods clearing window, the GRA explained that it was a stop-gap measure to attend to persons whose goods had already been valuated but were not cleared as at the time the previous system—GCMS, which was run by GCNet—was shut down.

“The manual process was resorted to for addressing transactions that commenced in GCMS/GCNET but had not been cleared before June 1, 2020. This mitigation strategy was

needed because GCNET did not provide data for those transactions in the right format,” the GRA statement said.

ICUMS rakes in close to GH¢180m in first week Meanwhile, the ICUMS has raked in ‎GH₵177.3 million in revenue at the Tema Port in the first week of its go-live, operators of the system told Business24.

This amount was generated from successful processing of 4,793 bills of entry (BOEs) from custom house agents and freight forwarders.

As at Friday, June 5, a total of 4,793 BOEs had been processed at the Tema Port through the ICUMS, with an estimated 23,384 entries processed at the Kotoka International Airport and five other border points of Elubo, Aflao, Paga, Kpoglo and Akanu.

Slow recovery predicted for oil sector

BY BENSON AFFUL

Energy expert Paa Kwasi Anamua Sakyi is predicting that the oil sector may not fully recover from the virus shock this year, and job losses will take a while to be regained.

“The extent of economic destruction accompanying the coronavirus crisis is thought to be much greater than the 2008 crisis, hence full recovery is not expected anytime soon. The recovery this time around would be slow and gradual because the oil sector took the hardest hit in the wake of the pandemic,” he told Business24 in an exclusive interview.

He said it is difficult to say demand and prices would get to the preCovid-19 levels, because there are several risks likely to distort that forecast.

The factors that cast a shadow over the immediate recovery of the sector, he said, include a possible second wave of infections as well as the political tension between the

U.S. and China.

“Certainly, demand, particularly for oil, has been improving as more economies begin to reopen, allowing people to move about and get back to productive business. But whether the current surge in demand, which is invariably translating into price recoveries, would prove sustainable is hard to conclude.

“Should a second wave of infections occur as warned by medical experts, the initial anti-Covid-19 protocols may have to be revisited, and that is likely to suppress crude oil and petroleum product demand, and subsequently hit hard on prices.

Stocks may have been drawn down compared to early May; however, there are still hundreds of millions of

barrels of both crude and petroleum products sitting in storage tanks around the world.”

He said currently over 2.2m barrels of U.S. production is shut in because production cost was higher than the past four months’ selling price.

“Oil at US$40 plus per barrel would automatically serve as an incentive for the producers to begin pumping more. There is also the issue of natural gas storage already getting full due to the milder winter. And also going into the summer, storage is likely to get fuller as demand for gas falls and new supplies come in later in the year, as forecasted.”

In Ghana, government is likely to miss its revenue target from oil by some 53 percent due to lower than projected prices on the global market.

Government in the 2020 budget projected to receive US$1.567bn from oil revenues, anchored on a price prediction of US$62.6 per barrel.

However, oil prices have dropped largely due to the pandemic.

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Gov’t pledges commitment to a ‘green economy’ as part of recovery plan

BY EUGENE DAVIS

The Minister for Environment, Science, Technology and Innovation (MESTI), Prof. Frimpong Boateng, has said the government remains committed to being a leader in tackling the great global challenges of climate change and biodiversity loss, and ensuring sustainability through a green economy.

According to him, a green economy is the future, and the country needs to prioritise a green economic recovery following the coronavirus crisis.

“This is something we are doing all the time, to the extent that we are engaged in carbon trading with countries like Switzerland that buy carbon credit from us and supply us with solar power. It is the same with South Korea that supplies improved cooked stoves for our communities in exchange for our carbon credit.

“So the green economy is the future—so that when you talk about plastics, you know how you design it, the content, how it is utilised and recycled, so you create a secular economy for our people and we can use our resources sustainably,” he told Business 24 in an interview at Parliament House to mark World

Prof. Kwabena Frimpong Boateng (left) and his deputy, Patricia Appiagyei, talk up the essence of World Environment Day

Environment Day. Investing in green sectors would deliver long-term stability in the global economy, experts have advised.

Implementing a comprehensive green economy results in “improved human well-being and social equity while significantly reducing

environmental risks and ecological scarcities,” research shows.

The Minister explained that World Environment Day is marked to create awareness on ensuring “our external environment is treated well, such as air, water, soil, forest, and the plants that give us the oxygen that we breathe in.

“So when you are cutting down a tree, know that you are cutting part of your lungs away because the trees give you oxygen. We use oxygen and breathe out carbon dioxide, but the trees and plants give us the oxygen.

So we need to protect what we have on land and sea.”

He said Covid-19 has thought the country a lesson. “When there was a lockdown, factories were not working, cars were not running, and planes were not flying, everybody could see changes in the environment and pollution going down. This tells us that we need nature; nature does not need us.”

As government eases restrictions and tries to repair the damage to the economy from the crisis, business owners in the country have called for investment in infrastructure, technology and skills to create jobs that help sustainability.

Environmental analysts have suggested that economic recovery from this global health crisis must put the restoration of nature at its heart—because that is the only way the country can continue to power its human endeavour sustainably, given that if nature is protected, the country is protected.

2,160 stranded Ghanaians abroad to be evacuated

BY EUGENE DAVIS

A total of 2,160 stranded Ghanaians in different parts of the world have been profiled to be evacuated back to Ghana to reunite with their families, the Minister of Foreign Affairs and Regional Integration, Shirley Ayorkor Botchwey, has said.

They will be evacuated from countries such as Benin, United Arab Emirates (UAE), China, United States of America (Washington D.C. and New York), United Kingdom (London), Mauritania, Burkina Faso, Turkey, and Nigeria.

There are additional arrangements by the government to assist with the evacuation of some stranded Ghanaians in other countries such as Belgium, Canada, Denmark, Germany, Italy, South Africa, Spain, Netherlands, Niger, Norway, Kenya, Ethiopia, and Switzerland.

Addressing Parliament at a sitting on Friday, Ms. Ayorkor Botchway said the decision was premised on the alert from the World Health Organisation (WHO) that the novel coronavirus outbreak is most likely to remain a global public health issue until a vaccine is developed.

Her comments were in response to a question filed by the National Democratic Congress (NDC) Member of Parliament (MP) for North Tongu constituency, Samuel Okudzeto Ablakwa, on government’s plans

for evacuating Ghanaians currently stranded abroad due to the closure of the country’s international borders to prevent the importation of the virus.

Ms. Ayorkor Botchway said the decision was also informed by the data gathered by the country’s diplomatic missions abroad on the categories of Ghanaians who were stranded.

The evacuation, she noted, will be done in phases and informed by financial and logistical considerations such as the capacity of the country’s isolation centers to hold large numbers of evacuees as well as the human resource capacity of the National COVID-19 Task Force.

The evacuation exercise, the Foreign Affairs Minister added, has been categorised into four groups— ability-to-pay, government-funded evacuation, distressed/destitute, and deportees.

Seven out of the 2,160 stranded Ghanaians have already been returned from Nigeria. Fifteen are expected to return from Mauritania, with a further 69 expected to return from Turks and Caicos, Washington D. C. and Burkina Faso.

Other batches are expected to arrive in the country from London (434 + 1 FSO) on June 17, New York (299) on June 24, and Washington D.C. (300) on June 28.

Ghana, she added, is in negotiations with its mission in Beijing and Ethiopian Airlines for the evacuation of some 675 stranded Ghanaians in China. Ghana’s mission in Abu Dhabi has also initiated discussions with the UAE for the evacuation of over 500 persons who are stranded in that country.

“The Foreign Ministry is also in

discussion with the Scholarships Secretariat and the National COVID-19 Task Force to finalise arrangements to evacuate 141 Ghanaian students who completed their language proficiency courses in Benin last month, using STC buses. Arrangements are in place to evacuate them on June 13, 2020,” noted the Foreign Affairs Minister.

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Gov’t to prosecute liable persons in Saglemi Housing Project

BY EUGENE DAVIS

The Minister of Works and Housing, Samuel Atta-Akyea, has told Parliament that the state will prosecute persons involved in the embezzlement of US$159m related to the Saglemi Housing Project.

The project contract was awarded to Messrs Constructora OAS Ghana Limited, a Brazilian construction company incorporated in Ghana, in 2013 for the construction of 5,000 affordable housing units. The units were to be sold to workers through a mortgage arrangement with Ghana Home Loans.

However, on three separate occasions between February 2014 and July 2017, the scope of the project was revised by former officials of the ministry, in contravention of the original scope approved by Parliament, Mr. Atta-Akyea said. Additionally, the contractor misappropriated US$159m of the funds that were paid to it for the project and has failed to deliver the housing units and related infrastructure expected, he added.

According to him, Constructora OAS was paid over US$179.4m, out of the contract sum of US$181m, to deliver almost all the 5,000

housing units including on-site infrastructure, but only constructed 1,024 units—not all of them fully completed.

Giving further details, the Minister said an amount of US$80m that

was paid as “mobilisation” to the contractor was misapplied.

“Immediately the sum of US$80m was released to the contractor, when actual work had not started, the contractor transferred abroad

US$40m. I submit that the seed of the bankruptcy of the Saglemi Housing Project was sown by this dubious act.

“There is no shred of evidence that when the money was taken out of the country, there was corresponding importation of materials to do the project. This racket was so strong that the ministry did not demand a performance bond as a necessary pre-requisite before the release of the US$80 million.”

The Ghana Institution of Surveyors has been engaged to undertake a value-for-money audit of the project, which “will indicate the extent of embezzlement of state resources via the vehicle of affordable housing delivery,” he said.

Minority’s reaction Responding to the Minister’s claims, the MP for Adaklu, Kwame Agbodza, accused Mr. Atta-Akyea of misrepresenting the contract sum to the House, asking him if he was aware that in all similar agreements Parliament had approved in the past, contractors were allowed to procure more than 50 percent of good and services from abroad.

“His presentation to the House is misleading, and he must accept that and correct himself,” he stated.

Minister cuts sod for 30 CICs

BY BENSON AFFUL

Communication Minister Ursula Owusu-Ekuful has cut sod for the construction of 30 Community Information Centres (CICs) at Akyem Asuom in the Eastern Region.

The CICs, which will be built across the country, are an initiative of the Ghana Investment Fund for Electronic Communication (GIFEC).

They will serve as learning centres for the public and students and enable them to access various e-learning tools and platforms even if they do not have Internet at home.

Mrs. Owusu-Ekuful called on district assemblies, MPs, publicspirited individuals and corporate organisations to partner the government through GIFEC to ensure that every under-served and unserved community in the country becomes part of the digital society.

She expressed gratitude for the support from Osaberima Ofosuhene Apenteng II (Asuom Hene) and his traditional leaders, Mr Seth Antwi Boasiako (MCE, Kwaebibrem Municipal Assembly) and Mr Abraham Kofi Asante (GIFEC Administrator) in making the project a reality.

She entreated all beneficiary communities to protect and maintain the facility when completed.

For his part, the Administrator at Ghana Investment Fund for

Communication minister Ursula Owusu-Ekuful cutting the sod for the construction of the 30 CICs

Electronic Communication (GIFEC), Mr Abraham Kofi Asante, said the need for ICT inclusiveness in the country cannot be overemphasized and it is for this purpose that GIFEC was set up to facilitate the provision of universal access to ICT to all persons for socio-economic development.

“Since it establishment, GIFEC has implemented several innovations to achieve it mandate. These include the expansion of telecommunications and data service to people living in communities with population less than 1,500.

He said digital divide is not just about connectivity, people lack the knowledge and skills they need to succeed in a digital economy.

“Lack of skills is the greatest barrier to digital inclusion, especially for people living in unserved and underserved communities.

He said there are more communities that lack such community ICT hubs and are lagging behind in their quest for digital knowledge and active participant in digital society.

He said as of 2017, only 28 out of the existing 241 community ICT centres

were operational.

“We therefore embarked on strategic turnaround program that involves refurbishing and equipping the centres to make them fully functional and achieve the objective for which they were established.

ICT is key to transforming the Ghanaian economy and setting it on a path to prosperity. It is our hope that this project would make citizens and students in the remote part of Ghana functional in this modern information society,” Mr Asante said.

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AgriBusiness

MONDAY JUNE 8, 2020

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AMG: A Ghanaian success story

BY ERNEST AKWESI APPIAH

M

any agric enthusiasts share the corroborative view that the responsibility of developing agriculture must be shared by government and the private sector.

The mammoth significance of agriculture and the dominant role it plays in keeping our economy alight and alive means private firms must stand tall with an effectual mix of expertise and quality input.

Through the delivery of cuttingedge services that are tailored to fit the peculiar challenges of the local agric industry, some firms have cemented their place as conspicuous allies of Ghanaian agriculture.

Besides quality products and relevant service delivery, these firms demonstrate admirable responsibility by consistently supporting the industry through ventures that are set-up to provide holistic support for agric-sector growth.

One of such stand-out firms, Agricultural Manufacturing Group Limited (AMG) is set to push beyond its boundaries by getting ahead of the competition with new operational perspectives that are tailored to reflect, excellent products and service delivery on all fronts.

AMG is the leading indigenous producer and distributor of enhanced efficiency and advanced crop nutrition performance fertilizers in the country.

The firm finds satisfaction in providing small scale/large scale farmers with a crop nutrition product/strategy that guarantees high yields, through the adaptation of cost-effective crop nutrition combinations.

AMG also specializes in the distribution of Agrochemicals and Farm tools across the country. It provides enhanced services, high quality agrochemicals (fertilizers, weedicides, insecticides, etc...); the firm also undertakes training programs for farmers to enable them increase their yields through the production of quality headline input like Cocoa Nti- a 100% cocoa fertilizer, enriched with plant nutrients capable of sustaining the lifespan of cocoa trees, ensuring high yield and high productivity.

Some of AMG fertilizers The firm’s N.P.K GLYCINE MIX comes with a significant amount of nitrogen which makes it an ideal product for encouraging strong growth and development. It also comes with a string of nutrients designed specifically to induce high yield in the production of PULSES SOYABEANS and PEANUTS. AMG’s NPK 25-10-10+TE product also offers an alternative for growers seeking a very high source

of nitrogen, phosphorus, potassium and a variety of trace element essential for cereal production.

RISOCORN, one of the firms headline product is a foliar crop nutrition product designed for the production of Rice, Sorghum and corn. The foliar product was created to support and feed plant life during time of drought and adverse weather/soil conditions that are detrimental to the plant’s life.

As a farmer-centred firm, production of fertilizers and other allied input is based on Making fertilizer affordable to every farmer, making fertilizers available to every farmer, supporting farmer groups with financing and other logistics to secure food production and providing the much-needed technical training to ensure high yields.

Established in 2012, AMG is already a conspicuous leader in the area of specialty fertilizers-a feat the firm seeks to consolidate through continuous innovative development of broad-spectrum fertilizer products and allied services.

Through this approach, the firm believes earnestly that it will be improving nutrient efficiency, yielding healthier crops, increasing farmer returns and changing livelihoods of farmers to ensure food security and sustainable development.

In the last decade, The AMG brand has steadily grown to become a symbol of quality, a pioneer and pacesetter in the Ghanaian agricultural sector.

With its expansive nationwide distribution network, which affords her the leverage of offering technical support for farmers everywhere in the country, AMG delivers high quality products for various crop areas such as cereals, vegetables, cocoa, etc.

Buoyed by an institutional focus on excellence and industry leadership, the firm also, operates with a wider pool of organizational aspirations, which include being environmentally responsible, and responding to major global challenges, particularly those that directly affect the company’s farmer-clients in Ghana.

Commitment to Industry Growth AMG has a conspicuous agenda for innovation. Indeed, the firm’s commitment to entrenching innovation in all its products and services is responsible for its searing influence in recent times.

The company actively supports industry initiatives that seek to place farmers on a better footing.

Notably, the firm has made a commitment to support Agri-house Foundation rollout a National subsistence farming enterprise, “1household, 1 garden initiative, designed to mitigate the effects of Covid-19 on food accessibility.

Specifically, the firm has offered a piece of land and other agro input

Mr. Ernest Akwesi Appiah- Managing Director, AMG Limited

to help the project thrive.

The initiative will drive a national home gardening agenda to help ensure a liberal supply of quality food to Ghanaians, while waiting for the fallout of the Covid-19 pandemic to abate.

It will particularly serve to sustain the food needs of families through the provision of staple vegetables like fresh lettuce, tomatoes, pepper, onions, beans, beetroots, cabbage, okra, carrot, cucumber etc.

The Project is an ideal system for individuals and families to grow their own food for self-consumption, as well as to gain relevant experience in the cultivation of crops in a controlled and small area.

Aside this nationalistic partnership, AMG is also set to attract and involve more youth in the Planting for Food and Jobs Programme under the Ministry of Food and Agriculture through a partnership with the Ministry of Food and Agriculture.

By this partnership, AMG will be working directly with the Ghana Agricultural Sector Investment Programme, to provide inputs (seeds, fertilizers), to youth, farmer groups and associations across selected agrarian regions for production. AMG will also provide requisite and adequate technical support to the youth, extension officers and farmers, under the program.

AMG is also in the process of introducing a unique farmercentred agric concepts that should further consolidate its impressive gains in the industry.

A Decade of Quality Delivery Already nearing a decade since it began operations; AMG is assuredly poised for greater things as its management seeks increased success on many frontiers.

In the area of capacity improvement, the firm has affixed its focus on deepening technical knowhow of farmers in the application of fertilizers to improve yields and boost food production.

This, the management of AMG believes will go quite some distance to strengthen the quality and depth

of input supply and related services, along the agricultural value chains and increase the productivity of Ghanaian farmers.

As a core component of the company’s ambition itinerary for the first decade of its operation, AMG plans to invest considerably towards improving youth and women participation in agriculture as this will ultimately transform the country’s largely subsistence agricultural sector into a more robust market economy.

Currently, AMG is responsible for the direct employment of approximately 200 personnel and about 5000 indirectly, contributing significantly to the growth and stability of the sector through sustainable livelihoods.

As a socially responsible firm, AMG places emphasis on environmentally thoughtful measure that sternly guides its operations. This, the firm acknowledges as its contribution to an environmentally sound Ghana.

Plans for Continued Impact In a bid to consolidate its grip on the local agric sector, AMG plans to create more specialized plantnutrition solutions for farmers. This approach, along with the firm’s indepth industry know-how will help ensure the continued growth of the entire value chain.

AMG has ploughed significant resources into the creation of ten (10) warehouses across the country to enhance storage of products thereby guarantying seamless supply of its products to farmers.

The firm also plans to significantly improve and provide transportation system that helps cart agricultural inputs across the country for easy accessibility.

Similarly, the firm hopes to push the boundaries of effectual crop nutrition through the construction of its state-of-the-art Plant Prescription Unit, which supports the production of tailor-made fertilizers to meet the specific crop needs.

Conclusion The ground -to -topflight status of AMG, interestingly began with the desire of an enterprising young marketer, to impact the agric sector positively and make farmers happy.

Today, the infant steps of what was a dithering business effort has transformed into something truly big-an imposing business enterprise with wings sprawling enough to accommodate the dreams and aspirations of the Ghanaian farmer to see the industry lead Ghana into an epoch of transformative socioeconomic change.

The local agric industry is akin to a boat with the government and private sector players aboard –it is the collective responsibility of both to pedal this boat towards pervasive prosperity- For now, Agricultural Manufacturing Group Limited (AMG) sits atop the pile of agric-industry firms pedalling the fortunes of Ghana’s agriculture towards inevitable success.

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Government-Bank of Ghana collaborative efforts to mitigate the impact of the Covid-19 Pandemic on businesses and the economy

BY INSTITUTE OF ECONOMIC AFFAIRS

G

hana has not been spared the ravaging impact of the Covid-19 pandemic that has plunged the entire global economy into a deep crisis.

In his 30th March statement to Parliament on the economic impact of the pandemic, the Minister of Finance indicated that Ghana’s growth could shrink to 1.5-2.6% in 2020, which would be considerably down on the original estimate of 6.8%. Almost every sector of the economy—from agriculture to industry to services—will be negatively impacted. Fledgling and fragile small and mediumscale enterprises are likely to bear the main brunt of the pandemic, resulting in widespread job losses and economic hardship. The Government and Bank of Ghana (BoG) have taken coordinated measures to mitigate the impact of the pandemic on businesses and the economy.

The IEA commend the GovernmentBoG response, while providing additional recommendations for making the proposed measures more effective.

Government has mobilised a GH¢1 billion stimulus package to support small businesses. This is an important initiative that will prevent these businesses that constitute the backbone of the economy from

going down and taking with them many households and livelihoods.

Our wish is that the National Board for Small-Scale Industries (NBSSI) will administer the package fairly and judiciously for the maximum benefit of the affected businesses, while also calling on the businesses to use the funds prudently and productively.

Emergency spending occasioned by the pandemic will render the 5% fiscal deficit ceiling in the Fiscal Responsibility Act (FRA) unattainable. The Minister of Finance is, therefore, right in indicating his intention to seek Parliamentary approval to exceed the ceiling, at least this year. When the crisis or emergency is over, the ceiling can be accordingly reinstated.

At its March sitting, the Monetary Policy Committee of the Bank of Ghana reduced the Policy Rate by 150 basis points from 16.0% to 14.5%.

This was a necessary step to induce lower lending rates for business and consumer loans.

Bank of Ghana reduced the primary reserve requirement of banks from 10% to 8%. This will free locked-up liquidity for banks to support the economy and is, therefore, a step in the right direction.

Bank of Ghana directed banks and Specialised Deposit-Taking Institutions to ease repayment of loans that may experience difficulty due to the slowdown in economic activity. The directive will certainly bring relief to businesses and

consumers that are expected to be impacted by the pandemic.

Bank of Ghana agreed with banks and mobile money operators on a number of measures to facilitate more efficient payments and promote digital forms of payment for the next three months. This is a useful intervention that will further promote the policy to limit the use of cash in the economy and thereby reduce the cost and inconvenience associated with cash transactions.

The IEA urges the BoG to ensure that the foregoing measures do not remain mere paper directives, but that they are strictly enforced and observed by banks and other financial institutions. For instance, we know that banks invariably show inertia in responding to policy rate adjustments, particularly in the downward direction. The BoG also expressed concern about the possibility of banks using the extra liquidity freed up for them to buy Treasury Bills rather than lending it to the private sector. Therefore, to make the monetary policy rate cut effective and also ensure that banks lend their freed-up reserves to the private sector, the BoG should, as of necessity, follow up with a strong directive to banks to act accordingly. We are even calling on the Bank to set up a multistakeholder committee, comprising representatives from the Bank of Ghana, Ministry of Finance, Ghana Bankers Association, Association of Ghana Industries and civil society to enforce the BoG measures.

Government needs substantial resources to finance both the health and economic costs of the pandemic.

We note that Government is sourcing funds from the IMF and the World Bank. Internally, Government has indicated its intention to resort to the Consolidated Fund and the Ghana Stabilisation Fund. We believe sourcing all of these funds is in order, given the gravity and urgency of the situation. It is our expectation that the funds would be applied judiciously to the intended purposes.

But beyond these sources, we believe that the central bank should also be able to provide some funding to Government. As we noted above, the BoG does not want banks to use their freed resources to fund Government, but rather to channel them to the private sector.

We understand this. Because of the crisis, the non-bank sector would also not have enough resources or even be willing to fund Government.

So, this is where the BoG hasto step in. We, therefore, support the Bank’s decision to waive the existing zeroceiling on its lending to Government and the subsequent decision by the Bank to purchase GHc10 billion of Treasury Bills. It is not only the BoG that is extending credit to its Government. Many central banks across the globe, including even those in mature economies, are offering a helping “financial hand” to their Governments at this (…CONTINUED ON PAGE 23)

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Aviation

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Brussels Airlines prepares to start flights on 15 June with set of sanitary measures Brussels Airlines is getting ready to welcome passengers and staff again as from June 15. Next to retraining its cockpit and cabin crew to be ready to start flying again, the airline has reviewed its services and processes and has taken the necessary measures to protect the health of its customers and staff throughout their travel journey, based on recommendations by international aviation organizations IATA and EASA and the Belgian health authorities.

On June 15 the first nine flights of Brussels Airlines will take off from Brussels Airport. In order to make the journey as safe as possible for travelers and personnel, the airline has taken several hygiene measures while still allowing passengers to travel in all comfort.

At the airport A first important measure is that the airline reminds passengers via several communications not to come to the airport when having symptoms or feeling ill. Flexible rebooking options remain in place should travel plans change at the last minute. Furthermore, Brussels Airport will perform temperature checks before allowing passengers to enter the terminal. At the airport check-in and sales desks plexiglass

screens have been installed to protect check-in agents as well as passengers. Transactions will be limited to electronic payment. Social distance courtesy lines will remind travelers to keep at a safe distance.

Additional cleaning procedure, hand sanitizers and hygiene reminders are put in place by the airport. Passengers on European flights are encouraged to check in their hand luggage (for free) to avoid queuing on board to find space in the overhead bins.

Mouth and nose covering mask As from the moment they enter the airport, all passengers from the age of 6 years old are required to wear a mask that covers nose and mouth.

The mask must be kept on during the entire flight, as social distance on board cannot be guaranteed.

Boarding and de-boarding will be phased to avoid queues and passengers are requested to scan their own boarding pass to avoid physical contact. The cabin crew will offer to apply hand sanitizer to all passengers when boarding the aircraft, as well as hand out a disinfectant wipe. The aircraft disinfection process has been reinforced and a stronger detergent will be used to make sure all surfaces are clean and the risk

of contamination is reduced to a minimum. In combination with the HEPA filters that are on board every Brussels Airlines aircraft, passengers can travel with peace of mind.

The HEPA filters on board create a downward stream of continuously cleaned air, which takes away 99.9% of particles in the air, creating an atmosphere in the cabin that is comparable to the air quality of hospital operating rooms.

During the flight, the airline will reduce physical contact between passengers and crew as much as possible. Therefore the meal and drink service on European flights (Buy-on-Board) will not be available and on intercontinental flights, the duty free service will be available for electronic payments only.

Unnecessary paper like menu cards,

magazines and newspapers are also removed from the aircraft.

The set of measures is based on the recommendations of both IATA (International Air Travel Association) and EASA (European Union Aviation Safety Agency) as well as the Belgian authorities.

Dieter Vranckx, CEO Brussels Airlines said: “We are confident that with these changes in our travel journey, we are able to offer our customers and staff the confidence and health focus that is needed to feel at ease and safe when traveling with Brussels Airlines. We, however, remain in constant contact with the relevant authorities in order to further finetune our set-up if needed. We very much look forward to welcoming our guests again on board of our flights.”

Nigeria: FEC okays N1.7b as consultancy fee for Abuja second runway project The Federal Executive Council (FEC) has approved the sum of N1.7 billion as consultancy fee for the construction of a second runway at the Nnamdi Azikiwe International Airport (NAIA), Abuja.

The Minister of Aviation, Hadi Sirika, who disclosed this while briefing State House correspondents at the end of the third virtual meeting of the council presided

by President Muhammadu Buhari, said the amount covers consultancy services for the design of the new runway.

Recall that in 2010, a contract to build a second runway at the Abuja airport was awarded at a cost of N64 billion or $165million, which brought the project under heavy criticism and public outrage.

The contract did not see the light of day as the project was abandoned.

The renewed interest in the project by the current administration has raised hopes that the second runway may be built before the end of Buhari’s tenure.

According to Sirika: “Today in council, a memo from the Ministry of Aviation was considered, and it is the consultancy services for the construction of second runway here in Abuja. The contract went to a consortium of consultants for the

total contract sum of N1.7 billion.

“This includes 7.5 per cent Value Added Tax (VAT) and also the exchange rate for the dollar component of N360 to one dollar.

And this is what caused the seeming increase in the last estimated figure,”

he said.

The minister noted that the consultancy part of the project was for 12 months, adding that a lot of work had been done in the procurement of consultancy services.

The Abuja airport currently has one runway, which was closed for six weeks for extensive repair work in March 2017 given rise to the pursuit of a second runway as a contingency. (Source: guardian.ng)

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MONDAY JUNE 8, 2020

Feature

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Safeguarding Africa’s food security in the age of COVID-19

BY PRITHA MITRA AND SEUNG MO CHOI

F

ood security in sub-Saharan Africa is under threat. The ability of many Africans to access sufficient, safe and nutritious food to meet their dietary needs has been disrupted by successive natural disasters and epidemics. Cyclones Idai and Kenneth, locust outbreaks in eastern Africa, and droughts in southern and eastern Africa are some examples.

The COVID-19 pandemic is just the latest catastrophe to have swollen the ranks of 240 million people going hungry in the region. In some countries, over 70 percent of the population has problems accessing food.

Sub-Saharan Africa is the world’s most food-insecure region, and in the June 2020 sub-Saharan Africa Regional Economic Outlook , we show that climate change is increasing that insecurity.

The sub-Saharan is particularly vulnerable to the forces of climate change. Almost half the population lives below the poverty line and depends on rain-fed agriculture, herding, and fishing to survive .

With each climate shock, whether drought, flood or cyclone, farmers suffer directly, while shortages elevate the price of food for all.

Lives lost, increased vulnerability Africans are easily pushed into food insecurity because their ability to adapt is limited by many factors, including low savings and access to finance and insurance. As a result, lives are lost, malnutrition rises, health worsens, and school enrollment drops. All this, ultimately damages the economy’s productive capacity.

During these times of COVID-19, we are seeing these challenges play out.

The measures to contain and manage the COVID-19 pandemic, while critical to saving lives, risks exacerbating food insecurity.

Border closures, lockdowns, and curfews intended to slow the spread of the disease are disrupting supply chains that, even under normal circumstances, struggle to stock markets, and supply farmers with seeds and other inputs.

Designing COVID-19–era measures to improve food security At this critical juncture, subSaharan Africa needs to prioritize policies targeted at reducing risks to food security as part of fiscal stimulus packages to counter the pandemic. Our analysis suggests these policies should focus on increasing agricultural output, and strengthening households’ ability to withstand shocks. This would have the added benefit of reducing inequalities while boosting economic growth and jobs.

Boosting agricultural output Even before the pandemic, many countries in the region were proactive in protecting their food supply by raising crop productivity and reducing their sensitivity to

inclement weather. For example, Mozambique is the location of a global pilot for newly-developed, heat-tolerant bean seeds, while in Ethiopia, some farmers’ yields rose by up to 40 percent after the development of rust-resistant wheat varieties (rust is brought on by higher temperatures and volatile rainfall).

Maintaining this momentum calls for continued progress in improving irrigation, seeds, and erosion protection, all of which would substantially boost production.

Meanwhile raising farmers’ awareness would also accelerate implementation of these measures.

Withstanding shocks: An outsized impact Adapting to climate change is critical to safeguarding the hardearned progress in economic development sub-Saharan Africa has achieved in recent decades.

However, adaptation will be especially challenging given countries’ limited capacity and financial resources.

The priority then should be on making progress in select, critical areas which could have an outsized impact in reducing the chances of a family becoming food insecure when faced with shocks from climate change or epidemics.

For instance, progress in finance, telecoms, housing, and health care can reduce a family’s chance of facing food shortages by 30 percent: • Higher incomes (from diverse sources), and access to finance would help households buy food even when prices rise, allow them to invest in resilience ahead of a shock, and better cope afterwards.

• Access to mobile phone networks enables people to benefit from early warning systems and gives farmers information on food prices and weather—just a single text or voice message, could help them decide when to plant or irrigate.

• Better-built homes and farm buildings would protect people and food storage from climate shocks. Combined with good sanitation and drainage systems, they would also preserve people’s earning capacity by preventing injuries, and the spread of disease, while ensuring safe drinking water.

• Improved health care helps people return to work quickly after a shock; and, along with education, raises their income potential and helps inform their decisions.

Social assistance also has a major impact as it is critical in compensating people for lost income and purchasing power after a shock hits. Insurance and disaster risk financing can be critical too, but the success of these programs in sub-Saharan Africa often relies on government subsidies and improvements in financial literacy.

Concentrating adaptation strategies in sub-Saharan Africa on policies that have outsized impacts, including on food security, will help reduce their costs. Implementation of these strategies will be expensive—$30–50 billion (2–3 percent of regional GDP) each year over the next decade, according to many experts.

But investment now will be far less costly than the price of frequent disaster relief in the future, both for lives and livelihoods. Our analysis finds that savings from reduced

post-disaster spending could be many times the cost of upfront investment in building resilience and coping mechanisms.

Securing sources of financing is especially challenging against the background of the pandemic and rising global risk aversion. But by stepping up financial support for adaptation to climate change in sub-Saharan Africa, development partners can make a tremendous difference in helping Africans put food on the table and recover from the pandemic.

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MONDAY JUNE 8, 2020

MONDAY JUNE 8, 2020

News

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MP urges more support for private sector to reduce import reliance

BY EUGENE DAVIS

The country needs to do more for the private sector by way of providing stimulus packages and incentives in order to reduce reliance on imports and to build a formidable economy post-Covid-19, the Member of Parliament for Afigya Sekyere East, Mavis Nkansah-Boadu, has suggested.

“A vibrant and well-incentivised private sector with value addition to our raw materials, which has been the focus of this government, should be the way forward in order for us to become self-reliant and the economy much more resilient to contain external shocks,” the MP said in a statement on the floor of Parliament this week.

Ms. Nkansah-Boadu, a member of the majority side of the House, said in light of the excellent efforts and foreseeable success in Ghana’s fight against Covid-19, the country should shift its focus from a vulnerable-selfinsufficient-import-driven economy to a strong-self-sufficient-exportdriven economy.

Although she commended government for the steps taken to revive adversely affected local businesses, she argued that “more needs to be done in that regard”.

Most Ghanaian businesses have been hit hard as a result of the coronavirus outbreak, and the government has rolled out key measures to mitigate the economic impact. Among them is the GH¢600m Coronavirus Alleviation Programme (CAP) business support scheme intended to support small and medium-scale enterprises (SMEs).

The fund is intended to provide relief to SMEs across the country that have been negatively affected by the fallout of the disease.

About 200,000 SMEs are expected to benefit from the fund by receiving low-interest loans to support their enterprises.

The Ghanaian economy is projected this year to experience its lowest economic growth since 1983, with real GDP forecast to increase by just 1.5 percent as a result of the coronavirus shock.

Mavis Nkansah-Boadu believes support for local businesses will help the country break the cycle of foreign aid.

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MONDAY JUNE 8, 2020

MONDAY JUNE 8, 2020

Feature

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19

Time for a great reset

COVID-19 lockdowns may be gradually easing, but anxiety about the world’s social and economic prospects is only intensifying. There is good reason to worry: a sharp economic downturn has already begun, and we could be facing the worst depression since the 1930s.

But, while this outcome is likely, it is not unavoidable.

To achieve a better outcome, the world must act jointly and swiftly to revamp all aspects of our societies and economies, from education to social contracts and working conditions. Every country, from the United States to China, must participate, and every industry, from oil and gas to tech, must be transformed. In short, we need a “Great Reset” of capitalism.

There are many reasons to pursue a Great Reset, but the most urgent is COVID-19. Having already led to hundreds of thousands of deaths, the pandemic represents one of the worst public-health crises in recent history. And, with casualties still mounting in many parts of the world, it is far from over.

This will have serious long-term consequences for economic growth, public debt, employment, and human wellbeing.

According to the Financial Times, global government debt has already reached its highest level in peacetime. Moreover, unemployment is skyrocketing in many countries: in the US, for example, one in four workers have filed for unemployment since mid-March, with new weekly claims far above historic highs.

The International Monetary Fund expects the world economy to shrink by 3% this year – a downgrade of 6.3 percentage points in just four months.

All of this will exacerbate the climate and social crises that were already underway. Some countries have already used the COVID-19 crisis as an excuse to weaken environmental protections and enforcement. And frustrations over social ills like rising inequality – US billionaires’ combined wealth has increased during the crisis – are intensifying.

Left unaddressed, these crises, together with COVID-19, will deepen and leave the world even less sustainable, less equal, and more fragile. Incremental measures and ad hoc fixes will not suffice to prevent this scenario. We must build entirely new foundations for our economic and social systems.

The level of cooperation and ambition this implies is unprecedented. But it is not some impossible dream. In fact, one silver lining of the pandemic is that it has shown how quickly we can make radical changes to our lifestyles.

Almost instantly, the crisis forced businesses and individuals to abandon practices long claimed to be essential, from frequent air travel to working in an office.

Likewise, populations have overwhelmingly shown a willingness to make sacrifices for the sake of health-care and other essential workers and vulnerable populations, such as the elderly. And many companies have stepped up to support their workers, customers, and local communities, in a shift toward the kind of stakeholder capitalism to which they had previously paid lip service.

Clearly, the will to build a better society does exist. We must use it to secure the Great Reset that we so badly need. That will require stronger and more effective

governments, though this does not imply an ideological push for bigger ones. And it will demand private-sector engagement every step of the way.

The Great Reset agenda would have three main components.

The first would steer the market toward fairer outcomes. To this end, governments should improve coordination (for example, in tax, regulatory, and fiscal policy), upgrade trade arrangements, and create the conditions for a “stakeholder economy.” At a time of diminishing tax bases and soaring public debt, governments have a powerful incentive to pursue such action.

Moreover, governments should implement long-overdue reforms that promote more equitable outcomes. Depending on the country, these may include changes to wealth taxes, the withdrawal of fossil-fuel subsidies, and new rules governing intellectual property, trade, and competition.

The second component of a Great Reset agenda would ensure that investments advance shared goals, such as equality and sustainability.

Here, the large-scale spending programs that many governments are implementing represent a major opportunity for progress.

The European Commission, for one, has unveiled plans for a €750 billion ($838 billion) recovery fund.

The US, China, and Japan also have ambitious economic-stimulus plans.

Rather than using these funds, as well as investments from private entities and pension funds, to fill cracks in the old system, we should use them to create a new one that is more resilient, equitable, and sustainable in the long run. This means, for example, building

“green” urban infrastructure and creating incentives for industries to improve their track record on environmental, social, and governance metrics.

The third and final priority of a Great Reset agenda is to harness the innovations of the Fourth Industrial Revolution to support the public good, especially by addressing health and social challenges. During the COVID-19 crisis, companies, universities, and others have joined forces to develop diagnostics, therapeutics, and possible vaccines; establish testing centers; create mechanisms for tracing infections; and deliver telemedicine. Imagine what could be possible if similar concerted efforts were made in every sector.

The COVID-19 crisis is affecting every facet of people’s lives in every corner of the world. But tragedy need not be its only legacy. On the contrary, the pandemic represents a rare but narrow window of opportunity to reflect, reimagine, and reset our world to create a healthier, more equitable, and more prosperous future.

Klaus Schwab is Founder and Executive Chairman of the World Economic Forum.© Project Syndicate 1995–2020

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MONDAY JUNE 8, 2020

MONDAY JUNE 8, 2020

Real Estate

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Meqasa to host Ghana’s first online housing fair Meqasa.com is bringing you Ghana’s first-ever online real estate housing fair! Starting from 15th June 2020 to 28th June 2020, this housing fair will bring you Ghana’s biggest property developers with the biggest property discounts you’ve ever seen. The event begins at 8 am and ends at 6 pm each day.

You can attend this housing fair with the link meqasa.com/reserve. meqasa.com is Ghana’s most trusted and secure real estate company. Over the last few years, the Meqasa Home & Property Fairs have successfully drawn large crowds of property enthusiasts and brought together hundreds of property seekers and real estate stakeholders including agents, developers and ancillary service providers. In an effort to continue meeting the high demand and increased interest of property seekers in real estate during these uncertain times, Meqasa has partnered with Ghana’s top real estate developers to offer amazing property discounts to property seekers. At this exclusively online housing fair, you can get as much as an exclusive 30% discount on property. With the current impact of COVID-19 on the economy and the purchasing power of seekers, along with the requirements of social distancing, we understand that this

is a much-needed opportunity for seekers to fulfil their goals of owning real estate in Ghana with minimal risk to their health.

In addition to the major discounts being offered at the Meqasa Online Housing Fair, there will also be a series of insightful webinars led by some of the biggest experts in the industry. The first webinar will be on the topic “Step by Step Process of Land Investment in Ghana: What You Need to Know” whilst the second shall focus on “How to Make the Right Decision in Property Investment”. Both webinars are free to attend and links can be accessed

on Meqasa’s social media pages. For the dates and times of the webinars, keep an eye on the Meqasa website and social media sites. These webinars are an opportunity for property owners and managers, seekers, investors, landlords, tenants and other industry stakeholders to benefit from a wide range of information provided by Ghana’s top real estate experts.

This two-week online housing fair is the first of its kind in Ghana and should not be missed! There will be something new and amazing for seekers who are seriously looking to acquire property in Ghana on

each day of the fair running from 15th June, 2020 to 28th June, 2020.

Don’t miss this one-time chance to enjoy astounding discounts on properties and educate yourself with the country’s biggest housing stakeholders. Exhibitors offering up to 30% discount on property include Earlbeam Realty, Whitewall Properties, Square Mile Homes, JL Properties, Waylead, Afariwa Royal Homes, CPL Developers Limited, Beaufort Properties, Rockhill Properties, Primrose Properties, CBC Properties, Devtraco Plus, Devtraco Limited and Appolonia City.

Singapore residential sales slide 14 percent from Coronavirus in Q1 Singapore-based property consultant EDMUND TIE & Company is reporting this week that overall private home prices in Singapore fell by 1.0 per cent quarter-on-quarter (q-o-q) in Q1 2020, according to their URA All Residential Property Price Index.

Both the Non-Landed Property Price Index (PPI) and the Landed Property Price Index also registered q-o-q declines of 1.0 and 0.9 per cent in Q1 2020 respectively. While this was the second consecutive quarter of decrease for the Non-Landed PPI, this was the first quarter of decline for the Landed PPI after two consecutive quarters of increase.

However, on a year-on-year (y-o-y) basis, both PPIs still posted growth with 2.0 percent change for NonLanded PPI and 3.6 per cent y-o-y increase for Landed PPI for the first quarter this year.

The decline in prices came amid the COVID-19 pandemic and economic slowdown, dampening market sentiments and muted demand for homes as local homebuyers held back their purchase plans to assess their financial positions.

Additionally, the COVID-19 pandemic led to lockdowns in many countries, restricting shortterm visitors and potential foreign homebuyers entering Singapore.

As the number of new cases of

COVID-19 heightened since March 2020, stepped up restrictions on people mobility in Singapore such as social distancing and caps on the number of visitors to residential show flats have reduced purchasing and leasing activities, impacting the private home transactions and prices.

Against the backdrop of slowdown in housing demand amid weakened sentiments, total transaction volume of private homes declined for the second consecutive quarter by 14.4 percent q-o-q to 4,174 homes in Q1 2020, the lowest since Q1 2019, when total sales amounted to 3,743 units. As there were fewer launches in Q1 2020 (10 projects compared to 12 in Q4 2019) and homebuyers turned more cautious amid economic uncertainties and the COVID-19 pandemic, new sales decreased by 12.0 per cent q-o-q to 2,149 units in Q1 2020, constituting 51.5 per cent of total private home sales. Transaction volume in the resale market fell by a larger 16.8 percent q-o-q to 2,025 units.

In the Core Central Region (CCR), 859 units were launched in Q1 2020, a 63.6 percent increase from the 525 units in Q4 2019. The hike in launched units brought about more transacted units, with 546 units sold in the CCR new sales market, despite muted residential demand. This was

mainly led by the high take-up rate for The M, with more than 70.0 per cent (375 units sold, median price at $2,439 per sq. ft). Apart from The M, there were six other new launches in the CCR in Q1 2020.

In the Rest of Central Region (RCR), there was an increase in the number of launched units from 493 in Q4 2019 to 623 units in Q1 2020.

However, there was a 14.7 percent q-o-q decline in transaction volume to 765 units in the same quarter.

In the Outside Central Region (OCR), the number of launched units almost halved from 1,208 units in Q4 2019 to 611 units in Q1 2020.

Correspondingly, new sales in the OCR fell by 30.7 per cent q-o-q to 778 units (Figure 6), falling below 1,000 units for the first quarter since Q4 2018, when 713 units were sold in the new sales market. This can also be attributed to the lack of large-scale launches in Q1 2020, with only two new projects of less than 50 units each being launched. In contrast, out of the five new launches in the OCR in Q4 2019, three launched more than 100 units each.

Following the slower sales in Q1 2019, new sales plummeted in April 2020, due to closures of condominium show flats from 7 April 2020 as part of the Government’s circuit breaker initiative. In April 2020, new sale units sold by developers totaled 277

units, a steep decline of 62.4 percent y-o-y and 58.0 per cent month-onmonth (m-o-m).

Projects that were in the top five rankings in terms of units sold in month of April 2020 included Kopar at Newton (83 units sold, median price at $2,241 per sq. ft), Treasure at Tampines (28 units sold, $1,372 per sq. ft), Riverfront Residences (17 units sold, $1,208 per sq. ft), Jadescape (12 units sold, $1,735 per sq. ft), and The Florence Residences (11 units sold, $1,489 per sq. ft).

Top six selling projects in the CCR in the months of April and May 2020 were Kopar at Newton (94 units sold, median price at $2,252 per sq. ft), Fourth Avenue Residences (8 units sold, median price at $2,112 psf ), in The M (7 units sold, median price at $2,477 psf ), Van Holland (3 units sold, median price at $2,981 psf ), Boulevard 88 (2 units sold, median price at $3,713 psf ) and Midtown Bay (2 units sold, median price at $2,860 psf ).

In the primary market, the highest proportion of transactions in Q1 2020 (by strata floor area) of 33 per cent constituted units between 500 and 700 sq. ft, a marginal uptick compared to 32 per cent in Q4 2019 (Figure 8). This unit size range mainly consists of 1- and 2-bedroom units. This was followed by units within the 700 sq. ft to 1,000 sq.

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MONDAY JUNE 8, 2020

Banking

(…CONTINUED FROM PAGE 11) unprecedented time of need. We hear some people say that this will be inflationary. What we say to them in reply is that this is also a matter of survival. We need to survive the pandemic first and then find the means to solve any inflation that may be associated with it.

While on this issue, we wish to point out that the central bank in a developing country has both stabilisation and developmental roles to play. Indeed, the BoG Act enjoins the Bank to support the general economic policy of Government, economic growth and economic development. It has to be said that even the US Federal Reserve is mandated to support economic growth and full employment. In the earlier part of its history, the BoG provided direct support to the economy by financing development projects, creating a regime of low interest rates and directing lending to strategic sectors like agriculture and industry. As part of the general

economic liberalisation measures introduced in the early 1980s, the Bank also liberalised financial transactions and abandoned its direct support for the economy, contrary to the obligations imposed on the Bank by its Act. In the course of history, the objectives of central banks have never been static, but have rather evolved. By their sheer unique power to issue currency, central banks have been called upon to play direct roles to support their countries to meet the exigencies of their times—be it wars, natural disasters or health pandemics. It is important that the BoG position itself to provide direct support to the development of the economy, in addition to pursuing its primary objective of price stability.

Further, the Bank should exercise its mandate as banker and financial adviser to Government by lending to Government. This will require amendment of the Bank’s (Amendment) Act, which reduced the previous ceiling on lending to Government from 10% of previous year’s revenue to 0%. It has to be

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emphasised that in a developing country, the Central Bank should be able to offer some financing to Government at a much cheaper rate than is available elsewhere, albeit subject to caps. Government’s lack of access to Central Bank money will compel it to borrow at much higher rates from the domestic bond market, where it will crowd out the private sector, or from international markets, leading to undesirable escalation of the public debt and erosion of long-term fiscal and debt sustainability.

It has to be pointed out that for the Bank of Ghana to provide the needed support to the economy and Government in a less inflationary way, the bank must have adequate foreign exchange reserves to back the domestic currency. It is important, therefore, for the bank to build up its reserves substantially above the current US$7-8 billion dollars level. And, to that end, one important, low-hanging-fruit is for Ghana to increase its share of the world chocolate market, which is worth US$100 billion, rather

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than continuing, 63 years after independence, to share only the raw-beans market that is worth a paltry US10 billion. To be able to do this, the BoG should spearhead concrete, beyond-lip-service policies to add value to our cocoa beans through scaled-up local processing and refinement, which will have the additional benefit of creating jobs here in Ghana. It is for this reason that we support our President’s recent polite rejection of the suggestion by the President of Switzerland that Ghana should increase its cocoa exports to that country. Our President was right in stating then that it would be in Ghana’s interest to refine its cocoa at home. In a subsequent statement, the Minister of Finance also, rightly, reiterated the President’s position. It is important, therefore, for Government and the BoG to adopt concerted measures to transform our cocoa beans into finished products so that Ghana can maximise its foreign exchange earnings from obviously its most important export commodity.

Banking in the next decade: Techfin or Fintech?

BY EBENEZER ASUMANG (CGIA) There are two big opportunities in the future financial industry. One is online banking, where all the financial institutions go online; the other is internet finance, which is purely led by outsiders.

– Jack Ma, Co-founder of Alibaba Group The banking industry is experiencing disruption at an increasing pace. Over the past few years, traditional financial institutions and non-traditional fintech firms have begun to understand that collaboration may be the best path to long-term growth. At the same time, big tech firms are offering financial services, creating techfin solutions.

The rationale for collaboration is the ability to bring strengths of both banks and fintech firms together to create a stronger entity than either unit could bring on their own.

For most fintech organizations, the primary advantages are an innovation mindset, agility (speed to adjust), consumer-centric perspective, and an infrastructure built for digital. These are advantages that most legacy financial institutions don’t possess.

Alternatively, most banking institutions have scale, a stronger brand recognition and established trust. They also have adequate capital, knowledge of regulatory compliance and an established distribution network.

According to the World Fintech Report 2018 from Cap Gemini and LinkedIn, in collaboration with Efma, “Most successful fintech firms have focused on narrow functions or segments with high

friction levels or those underserved by traditional financial institutions, but have struggled to profitably scale on their own. Traditional financial institutions have a vast customer base and deep pockets, but with legacy systems holding them back.”

The challenge will be the ability to establish an environment where collaboration can flourish as opposed to stifling the beneficiary attributes of either partner.

The difference between Fintech and Techfin is based on the origin of the underlying organization.

Fintech usually references an organization where financial services are delivered through a better experience using digital technologies to reduce costs, increase revenue and remove friction.

A basic example of a Fintech offering is the mobile banking services that most traditional banks offer. More commonly, fintech refers to non-traditional financial offerings such as PayPal, Zelle and Venmo in the U.S. and digital-only Starling Bank, Monzo and Revolut in the U.K. Alternatively, Techfin usually references a technology firm that finds a better way to deliver financial products as part of a broader offering of services. Examples of techfin companies include Google, Amazon, Facebook and Apple (GAFA) in the U.S. and Baidu, Alibaba & Tencent (BAT) in China.

A couple of years ago, Jack Ma, technology visionary and cofounder and executive chairman of Alibaba Group, described the difference between Fintech and Techfin.

In both instances, success of these organizations in finance will be based on the ability for the

institution to collect and analyze massive data sets, learn from the insights to improve personalization and digital engagement in real-time, and expand offerings in response to consumer needs.

A New Competitive Landscape Even with the best collaboration, the Techfin powerhouses will challenge the ability for legacy financial institutions to compete in the future banking ecosystem.

Built on digital platforms, these huge technology organizations are efficient and have already found ways to reduce operational costs and monetize their business models.

According to Bain, “Many of the tech giants possess the ingredients of success: digital prowess, large customer bases, organizations well versed in improving the customer experience, and ample leeway to extend their corporate brands into banking.” More concerns may be that some of these firms are generating a level of trust previously reserved only for traditional banks and credit unions.

It is expected that demand for products and services from Fintech firms and large tech companies will only increase as more consumers become familiar with new digital offerings. This is especially true for younger consumers, who have grown up with digital devices.

“Techfin firms start with technology and wonder how that can be used for commerce and trade. Alternatively, Fintech firms start with existing trade structures and wonder how to make them cheaper and faster with technology.

I liken it to Fintech firms are making faster horses whereas Techfin firms are working with airplanes”. – Chris Skinner More and more, people will get

annoyed when they’re forced by bank policies and processes to use non-digital channels for everyday banking business.

Traditional banking organizations cannot rely on providing checking accounts and loans only. Competitors are already eating away at significant parts of the banking value chain with the potential of limiting banks to becoming nothing more than utilities.

The future of the banking industry will depend on its ability to leverage the power of customer insight, advanced analytics and digital technology to provide services that help today’s tech-savvy customers manage their finances and better manage their daily lives. As financial and technology organizations embrace a broader view of banking, offering both banking and nonbanking services, the ultimate winner will be the consumer regardless of which provider they select.

Ebenezer ASUMANG (CGIA) worked in mainstream Banking & NBFIs. He is a Google Certified Digital Marketer, an Author and a Chartered member of the CGIA Institute, USA. www.ebenezerasumang.com /eben_asumang@yahoo.com/0242339145 LinkedIn – Ebenezer Asumang Facebook – Ebenezer Asare Asumang Twitter - @kwabenasumang Instagram – Ebenezer Asumang

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MONDAY JUNE 8, 2020

MONDAY JUNE 8, 2020

Feature

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Investing in African logistics

BY AUBREY HRUBY AND AUBREY RUGO

I

f economic and commercial opportunities were not enough motivation for investors to tackle the short-term constraints on e-commerce in Africa, the COVID-19 pandemic should be. Without more advanced logistics and infrastructure, the continent will struggle to deliver essential supplies safely.

As the COVID-19 crisis has escalated, stay-at-home orders have led to a surge in online purchases – of everything from groceries to medicines to household essentials – by consumers in the advanced economies. Africans facing similar movement restrictions will not enjoy the same convenience – or the safety it affords.

Over the last decade, a growing middle class and rapid progress in mobile and Internet penetration have supported the view that African countries are ripe for e-commerce success. Consumer spending across the continent is projected to reach $2.1 trillion by 2025, by which time mobile-phone penetration in SubSaharan Africa is likely to stand at 50%.

Yet, so far, companies have largely failed to tap Sub-Saharan Africa’s e-commerce potential, owing to logistical challenges and inefficiencies. Nigeria, the continent’s largest market, ranks 110th out of 160 countries when it comes to logistical efficiency, according to the World Bank. It can take three times as long to import an auto part through Lagos, Nigeria, than through Durban, South Africa. And it can cost up to five times more to transport goods in Sub-Saharan Africa than in the United States, based on 2015 estimates. Across the continent, a lack of integration means that companies face smaller markets

and considerable red tape when crossing borders.

When Alibaba was building and scaling its e-commerce ecosystem in China in 2003, it took advantage of relatively advanced urban infrastructure – the result of significant government investments in the 1990s. Thanks to that physical infrastructure, as well as existing financial infrastructure, the company was able to reach profitability with its business-tobusiness marketplace in 2002 – two years before the establishment of Alipay enabled it to overcome the lack of credit-card penetration and start expanding its customer-tocustomer marketplace, Taobao.

American and European companies had even greater advantages, including strong national postal systems and last-mile overnight delivery services like FedEx and UPS, as well as reliable and widely used credit-card networks. African e-commerce companies, by contrast, cannot always count on roads or street signs. Moreover, few Africans own bank cards (in Nigeria, the share is about 3%), and in many countries, only about 10% of adults have mobile money accounts.

Many Africans do not trust online shopping.

Whereas a company like Alibaba could wait until it was already growing to improve online payments and logistics, African companies must implement their own solutions from the start, while trying to meet investors’ expectations.

Given these challenges, it should perhaps not be surprising that Africa’s first e-commerce unicorn, Jumia, suspended operations at the end of last year in three of the 14 countries in which it previously worked, citing high fulfillment and shipping costs.

Supporting robust e-commerce growth in Africa will require infrastructure investment.

According to the African Development Bank, the

continent needs $130-170 billion per year in infrastructure investment – such as roads and railways – to meet baseline targets by 2025, implying a financing gap of $68-108 billion. China, with its competitive advantage in construction, can play a leading role in helping to close that gap.

The expansion of both assetheavy and asset-light local logistics companies is also essential. Before the pandemic, demand for logistics companies in Africa was already rising, and a growing amount of venture capital was being channeled toward local logistics startups. Even as the COVID-19 crisis results in trade disruptions, trucking remains critical for supplying food, medicine, and other essentials to individuals and health-care facilities.

One promising asset-light firm – the Nigerian startup Kobo360 – connects truckers and companies to delivery services. Since launching in Lagos in 2017, it has expanded its operations to four countries.

Kobo360 already has more than 10,000 drivers and trucks on its app, and provides services to major companies like DHL, Honeywell, and Unilever.

Thanks to large investments – including a $20 million Series A round led by Goldman Sachs, and $10 million in working-capital financing from Nigerian commercial banks – Kobo360 now plans to expand to ten more countries. The Kenyan logistics company Sendy, with a similar asset-light model, raised $20 million in a series B round, with Toyota’s trade and investment arm among the investors.

But a mature logistics market will also require investment in asset-heavy tech-enabled trucking operations. When DHL – the world’s biggest logistics company by revenue – expands to a new country, it often follows the assetlight model of leasing vehicles. But a lack of control over the quality of the hired trucks often meant that

goods arrive damaged or late. This was a particularly serious problem in India, where logistics spending was at least 4-5% higher than in Europe. So, in 2018, DHL launched a transportation subsidiary in the country, and aims to invest in a fleet of 10,000 trucks over the next decade.

African markets will require similar mixed investments. While companies like Kobo360 will continue to connect companies to delivery vehicles, ensuring that there are a sufficient number of reliable vehicles available will require additional targeted investment. Here, development finance institutions should take the lead, investing directly in assetheavy logistics companies, while venture funds continue to focus on asset-light companies.

Development finance institutions are uniquely suited to serve as catalysts for sectors that can boost economic growth or advance other development goals – or, during a pandemic, contribute to meeting public-health imperatives. Africa’s logistics sector undoubtedly fits that description.

If economic and commercial opportunities were not enough motivation for investors to tackle the short-term constraints on e-commerce in Africa, the COVID-19 pandemic should be.

Without more advanced logistics and infrastructure, the continent will struggle to deliver essential supplies safely to residents during the outbreak, making the socialdistancing measures that are so critical to slowing the spread of infection far more difficult to implement. If the needed investments are made, however, African countries will be in a better position not only to protect public health today, but also to secure a more robust economic recovery, fueled by middle-class growth.

26

MONDAY JUNE 8, 2020

MONDAY JUNE 8, 2020

Market Watch

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BY AGYEI SAMUEL OFOSU

27

USD/CAD STRUCTURE • ABC ZigZag Correction PREVIOUS/FORECAST • USDCAD has sucessfully completed its abc zigzag correction as previously forcasted • Expecting price to begin buying from current demand zone

**price @ time of analysis:1.40712

**Current price @ time of analysis:1.34804

EUR/USD STRUCTURE • Equidistant Channel PREVIOUS/FORECAST • The Euro is broke out of the equidistant channel as previously forcasted • Expecting price to begin selling as price approaches 1.14905 supply region

**price @ time of analysis: 1.08110

**Current price @ time of analysis: 1.13310

GBP/USD STRUCTURE • Impulsive wave PREVIOUS/FORECAST • GBPUSD completed its abc correction of actionary wave 1 as previously forcasted • Expecting buy continuation to around 1.28000 price regiona s price completes actionary wave 3 before the correction **price @ time of analysis: 1.21972

**Current price @ time of analysis: 1.26221

XAU/USD STRUCTURE Equidistant channel PREVIOUS/FORECAST • Gold begun its sell off as previously forcasted • Expecting sell to around 1600.00 price region.

**price @ time of analysis: 1736.05

**current price @ time of analysis: 1736.05

GOLD FOREX INSTITUTE www.goldforexinstitute.com Call: (+223) 302906626 | Email: customerservice@fxgoldtrading.com GFI services include: Forex training & mentorship for (but not limited to) individuals, hedge

fund institutions, and money and asset managers Pro Chart Analysis MAM/ PAMM Premium Signal (With Entry & Exit price) Premium Floor Trading Seminars & Online Webinars

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MONDAY JUNE 8, 2020

MONDAY JUNE 8, 2020

Risk & insurance

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Riots in wake of George Floyd’s death could become most costly civil disorder for insurers in the U.S

BY JIM SAMS

Rioting that erupted in cities across the United States after peaceful protests mourning the death of George Floyd in Minneapolis may rival the 1992 Los Angeles riots to become the most costly civil disorder for insurers in United States history.

The civil disturbance in Los Angeles after the videotaped police beating of Rodney King in April and May 1992 caused $775 million in damages — or $1.42 billion in today’s dollars, according to the Insurance Information Institute. Those riots, however, were largely confined to one metropolitan area. Destruction and looting that erupted after Floyd’s death has been reported in at least 25 cities, and spread into many suburbs as well.

It is expected expect that this will be a significant loss event as the impact is being experienced in large and small markets across the U.S. However, because it is an ongoing event, it will be premature to

determine the volume of property loss that will be incurred.

Civil disturbances generally cause modest property losses when compared to natural disasters, data from the Insurance Information Institute shows. Rioting in Los Angeles in August 1965 — the second costliest civil disorder — caused $357 million in damages, measured in 2020 dollars. Together, riots in Baltimore, Chicago and New York City in April 1968 caused $231 million in damages in today’s dollars.

By comparison, Hurricane Harvey in 2017 caused an estimated $20 billion in damages. Property Claims Service (PCS) has declared the riots a catastrophe event, which means it projects damages of more than $25 million. PCS hasn’t designated a civil disturbance as a catastrophe since the Baltimore riots in 2015.

PCS head Tom Johansmeyer said the riots that were sparked

by Floyd’s death may be the first civil disorder tracked by PCS that includes more than one state.

Johansmeyer said “to better understand” potential riots from current rioting, it makes sense to

look at losses caused by civil unrest last year in Chile — which grew from protests over an increase in subway fares in Santiago. Rioting there caused insured losses of $2 billion.

About a third of that came from property claims from a handful of large retailers.

In the United States, riot and civil disorder may generally look like a US $100 million risk, although with the potential for much greater losses. But, when you add a handful of large national or international companies with losses of more than US $100 million each, you could see a much larger industry loss begin to materialize. The large losses within the catastrophe could change the character of the overall event.

Keefe, Bruyette & Woods analyst Meyer Shields said that his best guess is losses from the current riots will be “relatively modest.” Nevertheless, the losses will combine with losses related to COVID-19 claims and property damage from a predicted above-average hurricane season to amount to a “capital event” for some reinsurers.

The Insurance Information

Institute said riots, civil commotion, vandalism, looting and fire in the U.S. are covered perils under virtually all business owners and commercial insurance property policies.

Merchandise stolen by looters will also be covered. About 40 percent of small to mid-sized businesses are also protected by business interruption coverage according to the Institute. Even if the business was still shut down or operating at limited capacity due to the impacts of the COVID-19 pandemic, most insurers will determine income loss based on a 12-month assessment of the operation’s income.

That coverage may also protect businesses that have to shut down early because of curfews imposed by city governments

Sams is editor of ClaimsJournal. com, the online resource and daily newsletter for property/casualty insurance claims professionals. Claims Journal is a member of the Wells Media Group. Sams can be reached at jsams@wellsmedia.com Copyright;, The Insurance Journal

30

MONDAY JUNE 8, 2020

MINISTRY OF FINANCE PETROLEUM RECEIPTS AND DISTRIBUTION REPORT FOR THE FIRST QUARTER OF 2020 Pursuant to Section 8 of the Petroleum Revenue Management Act, 2011 (Act 815). as amended (Act 893), the Minister is required to publish petroleum receipts (defined in Section 6 of the Act), namely, total output lifted and reference price, among others, on quarterly basis. This publication covers petroleum receipts for the first quarter of 2020.

TEN ITEM

UNIT

SANKOFA

14TH

TOTAL

4TH

QTR 1 2020 Barrels

4.834,184

3,756,842

8,591,026

o/w Ghana Group GOG/GNPC

bbls

345,931

550,045

1,395,977

o/w Partners

bbls

3,888,253

2,806,796

6,695,049

Date of Lift

d/m/y

15th December 2019

14th February, 2020

Reference Price per barrel

US$

63.925

6306

Price Option Fee

US$

0.00

0.00

Differential (Premium)

US$

(0.850

(0.900

Market Price Per Barrel

US$

63,125

62.26

Volume Lifted

Gross Receipt from Ghana s Group Lift

US$

59,153,664.14

118,865,558.52

o/w Royalties

US$

15,509,582.95

59,1 53,664.14

74,663,247.09

o/w Carried and Participating Interest

US$

44,202,311.42

N/A

44,202.311 42

US$

25,637,340.63

N/A

25,637.340.63

o/w Equity Financing Cost

US$

17,680,924.57

N/A

17,680,924.57

o/w Met Carried & Participating Interest (30%)

US$

795641606

N/A

7,95641606

US$

34,074,553.75

59,153,664.14

93,228,217.89

o/w Royalties

US$

15,509,582.95

59.153,664.14

74,663,247.09

o/w Net Carried & Participating Interest (70%)

US$

18,564,970.80

N/A

18,564,970.80

Other Petroleum Receipts

US$

50,836.898 38

640,439.12

51,477,337.50

o/w PHF Income

US$

204,325.24

98,783.33

303,108.57

o/w Corporate Income Tax (Anadarko)

US$

14,322,801.00

OOC

14,322,801.00

o/w Corporate Income Tax (Cosmos Energy)

US$

24,736427.00

0.00

24.736.427.00

o/w Corporate Income Tax (Tullow Ghana Ltd)

US$

4,469,076.00

0.00

4,469,076.00

o/w Corporate Income Tax (Petro SA)

US$

7,012,430.50

0.00

7,012,430.50

o/w Surface Rental (Tullow Ghana Ltd)

US$

77,725.23

0.00

77,725.23

o/w Surface Rental (Petro SA)

US$

14.113.41

0.00

14,113.41

o/w Surface Rental (Aker)

US$

0.00

150,750.00

150750.00

o/w Surface Rental (GNPC Operating Sen/ices)

US$

0.00

8,725.00

8,725 00

o/w Surface Rental (AGM Ghana Ltd)

US$

0.00

204,527.00

204.527.00

o/w Interest-Late Payment (GEMCORP commodities Trading)

US$

0.00

67,483 79

67,483.79

o/w Interest-Late Payment (GEMCORP commodities Trading)

US$

0.00

US$

84,911,452.13

Transfer to GNPC

GOG Net Receipts from Lifting

(Net GOG Receipts

Hon, Keil Ofori-Atta Minister

110,17000 59,794,103.26

110,170.00 144,705,555 39