Business24 Newspaper 1st December, 2021

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WEDNESDAY NOVEMBER 1, 2021

BUSINESS24.COM.GH

Wednesday December 1, 2021

NO. B24 / 281 | News for Business Leaders

The high stakes of rising inflation

Who qualifies for mortgage financing?

See page 11

See page 13

Gov’t begins E-Levy talks with telcos as budget approved

By Eugene Davis ugendavis@gmail.com

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he Minister of Finance, Ken Ofori-Atta, has said that government has begun talks with telecommunication networks to reduce the impact of the proposed Electronic Transaction Levy (E-Levy) announced in the 2022 budget.

The levy is proposed as a charge of 1.75 percent on the value of electronic transactions.

It will cover mobile money payments, bank transfers, merchant payments, and inward remittances.

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The levy is proposed as a charge of 1.75 percent on the value of electronic transactions

SSNIT assures of regular payment of pensions

Ghana to assist Guyana spur oil industry

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uyana’s emerging upstream petroleum industry is set to receive technical assistance and practical learnings from Ghana as part of efforts to spur the development of the industry.

By Benson Afful affulbenson@gmail.com

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he Social Security and National Insurance Trust (SSNIT) says the trust presently has enough reserves to pay all accruing benefits

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Editorial / News

WEDNESDAY NOVEMBER 1, 2021

Editorial

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GEPA’s guided help to arts and crafts sector is laudable

he Ghana Export Promotion Authority (GEPA) has teamed up with the Accra Arts and Craft Market to hold a monthly weekend market for small and medium businesses in the arts and crafts at the W.E Dubois Centre in Accra.

Through these regular exhibitions, businesses in this sector have vibrant market to showcase their crafts and products to lovers of arts from all walks of life.

It is also part of GEPA’s market linkage activities that provides the platform for makers of handicrafts and arts, such as artefacts, African wear, batik tie and dye, processed shea butter products, beads and accessories

etc. to showcase and sell their products due to the restrictions of the coronavirus pandemic.

The initiative is broadly aligned to government’s quest to empower the local arts and handicrafts industry to trade competitively and to ultimately boost the nation’s non-traditional exports, the authority says.

It also seeks to change the negative perception around local arts and crafts through awareness to attract patronage whilst attracting the right investments to the sector.

As the nation’s exports facilitator, GEPA has left no stone unturned in its quest to shore up Ghana’s exports, especially when it comes to non-traditional

export which hoards huge prospects for the expansion of the business.

The handicrafts sector is one area that could be leveraged to drive up the achievement of the country’s ambitious revenue target for NTEs and the implementation of the single continental market must give some added impetus for this agenda.

We find GEPA’s helping hand to the arts and craft industry as a step in the right direction and we hope that this partnership will be sustained in the interest of the arts, crafts and the provision of sustainable livelihoods and the local economy.

Gov’t begins E-Levy talks with telcos as budget approved Continued from cover

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Speaking on the floor of a onesided Parliament on Tuesday, following the absence of minority MPs, Mr. Ofori-Atta said, “The E-Levy enables us to tackle three issues: debt sustainability, infrastructure, and employment.

We have 11m youth, and we have in this budget introduced the largest youth programme of GH¢10bn to ensure that the entrepreneurial nation that we seek will be achieved.”

He continued, “The issue of living standards is a problem that concerns us, and we are in discussions with the telcos to scale back to moderate the impact so that in the end, the impact on the citizenry will be manageable.”

Budget approved A parliament boycotted by the minority voted to approve the 2022 budget on Tuesday, after the House had earlier rescinded last Friday’s rejection of the budget.

In the absence of the minority MPs, the Finance Minister submitted a revised version of the 2022 budget, which was unanimously approved by the majority MPs.

The start of the day’s proceedings had been delayed by hours of meetings between the majority and minority leaderships aimed at resolving their disagreements to ensure the budget’s approval by both sides.

On Friday, November 26, the minority caucus had voted to reject the budget after the majority caucus staged a walkout.

The majority side subsequently accused the Speaker, Alban Bagbin, of acting in breach of the 1992 constitution by allowing the 137 MPs of the minority to take a decision to reject the budget last Friday.

The minority, among other reasons for rejecting the budget, demanded the suspension of the E-Levy and the Agyapa Royalties deal.

Minority objects to approval

Meanwhile, the minority leader, Haruna Iddrisu, has said the approval of the 2022 budget by the majority constitutes a nullity, basing his argument on Sections 1, 2 and 3 of Article 104 of the 1992 constitution.

“The majority say they respect the constitution and the standing orders of the House. Today I am particularly disappointed in the conduct of the First Deputy Speaker, having to include himself in order to meet their mandatory 138 [members] without recourse to the standing orders and the 1992 constitution,” he said in an address to the media.

“The Speaker for the day, Joe Osei Owusu, MP for Bekwai, had no locus to count himself among the MPs; therefore, as far as we are concerned, today’s vote reflected another 137. They have set a precedent that will come and haunt them in future,” he added.

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WEDNESDAY NOVEMBER 1, 2021

SSNIT assures of regular payment of pensions Continued from cover due members and their validly nominated dependents.

Managers of the scheme said concerns raised in the 2017 actuarial valuation report, referred to by the Africa Centre for Retirement Research (ACRR), were being addressed and that there was no cause for worry.

The trust noted that key among the concerns was the debt owed the scheme by employers, adding that it had not relented in its efforts to retrieve all arrears owed the trust by employers to improve the sustainability of the scheme. It said as of September 2021, 7,951 criminal cases were pending in court against defaulting employers.

It said over 500 employers, including government, had arranged for terms of settlement, adding that government had since 2017 paid GH¢5.77 billion to clear social security contributions owed by successive governments.

“SSNIT continues to actively engage government, the largest employer, to pay the

contributions of its employees,” it added, and assured all members that it would continue

to ensure prudent management of funds to enhance the long-term sustainability of the scheme.

Ghana to assist Guyana spur oil industry Continued from cover Following an earlier visit from officials of the South American nation in October this year, a team from Ghana has honoured the request of the Vice President of Guyana, Bharrat Jagdeo, to continue technical discussions in his country.

According to Mr. Jagdeo, the emerging opportunities in the industry require guidance from more established entities to ensure that his country

deploys the right strategies and best practice to build robust structures.

The visit and subsequent meetings which were held last week comprised of a Ghanaian technical team represented

by Director, Local Content, Petroleum Commission, Mr. Kwaku Boateng; CEO, Ghana National Gas Company, Mr. Benjamin Asante; and Snr. Technical Manager at Ghana National Gas Company, Mr. Abraham Mensah. The team

met with a delegation of lawyers from Guyana’s Chamber of the Attorney-General to deliberate on matters concerning Guyana’s local content legislation.

Further deliberations were held on Guyana’s Local Content Bill and Ghana’s technical team made several vital inputs and recommendations to the Guyanese. The Ghanaian delegation further promised to send academic essays and court rulings on their legislation following a request

from the Guyanese’s Chamber of the Attorney-General. The documents are to serve as a guide to augment Guyana’s efforts.

A local legal committee comprising of lawyers and drafters from the Chamber of the Attorney-General, persons from the Environmental Protection Agency, and officials from the Ministry of Natural Resources was constituted after the meeting. “This team will spearhead Guyana’s pursuit of legislative changes in the oil and gas sector,” Attorney-General and Minister for Legal Affairs, Mr. Mohabi Anil Nandlall, said.

The committee will work jointly with the delegation from Ghana to develop a Local Content Bill that meets industry best practice. Other matters pertaining to the legislative infrastructure of the oil and gas industry were also tabled for discussion.

There is the hope for a more fruitful relationship and collaboration between both countries in the spirit of SouthSouth cooperation.

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WEDNESDAY NOVEMBER 1, 2021

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WEDNESDAY NOVEMBER 1, 2021

President calls for reform of legal education

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resident Nana Addo Dankwa Akufo-Addo has stated that a reform of the system, under which legal education currently operates in Ghana, is necessary to accommodate current realities, adding that the new system should be will have to be girded by a strong element of sustainability.

According to President Akufo-Addo, “Sustainable legal education will have, as its base, the establishment of a regime that will consider the pressing needs of the growing law student population and the expected demands of the generation unborn that will study law. It will be qualitative in its operation, but with a fair and balanced quantitative selection system”.

He also stressed that “it must also streamline the regulatory dualism between the Ghana Tertiary Education Commission and the General Legal Council when it comes to legal education. I have to restate my conviction that the General Legal Council must have the final say. “ The President made this known on Monday, 29 th November 2011, when he delivered a speech at the International Conference on the Future of Legal Education in Ghana/Africa, held at the Auditorium of the University of Ghana School of Law, Legon,

Accra.

He indicated that he has already asked the Attorney-General to fasttrack the balance of consultations on the Legal Profession Bill, and lay it before Cabinet and, ultimately, Parliament as soon as possible for enactment.

“This Bill aims to address comprehensively the issues of legal education in Ghana today.

It must dispel the notion that the legal profession is a guild, a small club of mostly men, which is difficult to penetrate”, he said.

President Akufo-Addo, nonetheless, indicated that even if the new Legal Profession Act, which is under consideration, provides for a multiplicity of law schools to regulate the teaching of the professional examinations, and break the monopoly of the General Legal Council in that regard, “there can be no

substitute for the General Legal Council being responsible for the maintenance of standards in the new system”.

He was hopeful, though, that new Legal Profession Act and the various Regulations, that will result from it, “will bring the many issues surrounding legal education in Ghana to fruitful resolution once and for all, at least for this generation”.

Don’t compromise on quality Whilst reiterating his belief in opening up the opportunities in legal education, President AkufoAddo stated that there should be no compromise on quality.

“A badly trained lawyer is a danger to society. A badly trained lawyer can cause untold damage to life and property, and a badly trained lawyer will bring the legal profession into disrepute much faster than any revolution,” he

said.

The President continued, “I do not reserve my passion for people being well trained in their profession for only lawyers. I doubt that anyone will argue over an assertion that a badly trained plumber is a veritable danger to society. We need a lot of plumbers, but I am sure nobody will suggest that we should cut corners in the training of plumbers. We need a lot of doctors, but I am certain no one will tolerate the concept of a badly trained doctor, or a badly trained engineer or teacher. I suggest we do not try to find a solution to the problem we face by compromising on the quality of the training.”

Apart from the provision of extra buildings that are needed to accommodate the extra numbers, President Akufo-Addo noted that there must be enough accomplished lawyers to teach the courses.

“I do not break any secret code, I am sure, if I say here that some of the new law faculties are struggling because they do not have enough qualified law teachers. No matter how good the lecturers in Legon are, and they are good, a lecturer at the Law Faculty here cannot possibly teach adequately all the classes in all the universities for which he has lent his name for accreditation,” he added.

StanChart launches Wealth Academy with INSEAD

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tandard Chartered (“the Bank”) and INSEAD, one of the world’s leading and largest graduate business schools, has launched the Standard Chartered-INSEAD Wealth Academy, with a multi-year client engagement and wealth management global education programme for the bank’s relationship managers and wealth specialists.

Co-created by financial and business academic experts from the respective organisations, the Wealth Academy aims to upskill the Bank’s relationship teams and nurture them to become futureready advisors, providing timely, personalised and high-quality differentiated wealth advice to clients. The global programme will commence with its first cohorts of Relationship Managers and Wealth Specialists in Singapore and Hong Kong in early December 2021 and extend to teams in other markets over time.

The launch of the Wealth

Academy and the programme strengthen the Bank’s strategic agenda to grow its Affluent banking business. It will deepen the relationship teams’ capabilities particularly in the areas of wealth advisory and client engagement such as behavioural skills.

The full programme comprises a three-part journey – Diploma, Graduation and Masters – that is structured and yet offers flexibility to allow for the development of individual preferences and goals.

The programme will provide a strong foundational appreciation for finance and banking as well as distinctive expert knowledge and skills. Other components offered by the Academy will include wealth engagement modules curated and delivered by Fitch Learning, and a prestigious on-campus programme for top learners at INSEAD’s Europe campus in Fontainebleau, France, or San Francisco Hub. The modules offered in the Masters journey will include specialised

electives such as sustainable investing and multi-generation wealth transfer, in partnership with the industry’s leading educational and professional institutions.

Judy Hsu, CEO, Consumer, Private & Business Banking, Standard Chartered, said: “As one of the largest wealth managers in Asia and given our presence in markets with almost 100 million affluent individuals, Standard Chartered is in a privileged and unique position to help our affluent clients grow and protect their wealth. By investing in our people, the Wealth Academy reinforces our commitment to deliver top quality advice to our clients. I look forward to a successful partnership with INSEAD as we continue to uplift the capabilities of our Relationship Managers and Wealth Specialists.”

Raymond Ang, Global Head, Affluent Clients, Standard Chartered, said: “With growing affluence in the markets where

we operate, clients are more discerning and demanding better service from their banks. A highly competent and experienced relationship team allows Standard Chartered to deliver a differentiated experience to our clients. We believe in the upskilling and holistic development of our relationship teams and the Wealth Academy is our commitment to their career development and charting an attractive and progressive career path for them.”

Sameer Hasija, INSEAD Dean of Executive Education and Professor of Technology and Operations Management, said: “At INSEAD Executive Education, our vision is to train, motivate and inspire the executives who can make their companies more productive, more efficient and to contribute more to society. I am delighted to start this programme with Standard Chartered and am confident that the business school experience will be of tangible benefit to these wealth talents.”

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WEDNESDAY NOVEMBER 1, 2021

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WEDNESDAY NOVEMBER 1, 2021

Minority describes approval of 2022 budget as a void

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he Minority in Parliament has described as a nullity the approval of the 2022 Budget Statement and Economic Policy of the Government by the House on Tuesday, November 30.

On November 26, 2021, 137 Members on the Minority side voted to reject the Budget, during which the Majority side staged a walkout.

Tuesday’s reinstatement and approval of the budget was carried out by the 138 Majority

MPs including the First Deputy Speaker, Mr Joseph Osei-Owusu, MP of Bekwai, who presided.

However, the minority was absent from the Chamber of the House.

Mr Haruna Iddrisu, the Minority Leader, speaking at a press conference after the majority’s approval, said he was unhappy with the decision of the First Deputy Speaker, who sat in as the Speaker to include himself and to exercise a vote in order to

meet their mandatory defined 138 majority votes without recourse to the Standing Orders of Parliament and to the 1992 Constitution.

"Standing Order 109:2 reads that Mr Speaker has neither an original nor a casting vote and if upon any question before the House, the votes are equally divided, the motion shall be lost,” he said.

He said the Constitution says “A Deputy Speaker or any other Member, presiding, shall not

retain his original vote while presiding”.

“So, constitutionally they were also 137, so Ghanaians should also expect that what they had done is also a nullity to quote them if we are to respect the provisions of the Constitution.”

On why the minority did not participate in Tuesday's sitting, Mr Iddrisu said the majority side did consult them prior to the sitting and that they were to approve the budget subject to concessions granted by the minister of finance.

However, there were no concessions in the budget; he said, adding; “and, therefore, what are they approving?”

Mr Iddrisu said the minority’s views were that the budget should be revised to reflect those concessions before it would be approved by Parliament.

The minority was against the introduction of the Electronic levy (E-levy) and the re-introduction of the Agyapa Deal in the 022 budget and wanted a downward revision of the E-levy to one per cent for the good of the Ghanaian people.

The Minority Leader said they were determined to support the government in its efforts to redeem the economy.

Gov't supports 500 poultry farmers in Central Region

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he government has supported more than 500 poultry farmers in parts of the Central Region to expand their farms and create jobs.

They were supplied with 5,000 cockerels and 1,000 piglets at subsidised prices for breeding as part of the Ministry of Food and Agriculture's (MoFA) Rearing for Food and Jobs (RFJ) programme.

Mrs Justina Marigold Assan, Central Regional Minister, disclosed this when she took her turn at the ongoing National Farmers' Day celebration and Trade Exhibition in Cape Coast.

Monday's Fair was mounted by Central, Western North, Bono, Eastern and Northern Regions who also displayed parts of their colourful culture and traditions through dancing, drumming and music.

The other Regions will take their turns in subsequent days.

The Day, scheduled for Friday, December 03, on the theme: “Planting for Food and Jobs; Consolidating Ghana’s food systems”, is expected to recognize and celebrate farmers

Nationwide for their immense contribution to national growth and development.

The RFJ initiative seeks to develop a competitive and more efficient livestock industry that increases domestic production, reduces importation of livestock products and contributes to employment generation.

The programme, under the broader Planting for Food and Jobs (PFJ), the module was officially launched by President Nana Addo Dankwa Akufo-Addo at Wa in 2019 to address issues associated with livestock development in the country including, but not limited to poor genetic quality of breeds used by farmers.

It also seeks to solve poor nutrition, animal health; poor and inadequate livestock housing structures/equipment; inadequate agricultural extension service and developing and promoting the livestock value chain.

Meanwhile, under the Planting for food and Rural Development Programme, a total of 8,943 cashew, oil palm, coconut, mango

and cocoa seedlings have been distributed to farmers in all the 22 Metropolitan, Municipal and District Assemblies (MMDAs) in the region.

More than 237,000 farmers in the Region are now growing rice, cowpea, maize and vegetables under the PFJ since its inception in 2017.

The government had also built six warehouses under the one District, One Warehouse (1D1W) in Awutu Senya East, Assin Fosu, Cape Coast, Twifo Atti-Morkwa, Upper Denkyira West and Upper Denkyira East Districts.

Relatedly, under 1D1F, Mrs Assan reassured that the Ekumfi Fruits and Juices Processing factory, Casa de Ropa factory and Peterfield & Rey factory who are largely into fruit processing and bakery were functioning effectively.

Outgrower farmers had been organised into groups for the production of pineapple, orange, sweet potatoes to feed the three factories to ensure continuous production.

Reiterating commitment to

e-agriculture and environmental sustainability for sustainable food production, Mrs Assan said, the Center for No-till Agriculture located at Kobina-Ansa, a suburb in the Mfantsiman Municipality had been established.

It seeks to engage farmers in the conservation of agriculture, a proven system to cultivate healthy soil, restore nutrients and depleted land ad also conserve water, manage weeds, pest and increased yields in environmentally friendly climate.

Wooing investors, she said, the Central Region was naturally positioned with over 71 percent of its nearly three million population being engaged in agriculture and related activities.

GNA

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WEDNESDAY NOVEMBER 1, 2021

Stanbic Bank donates pick-up truck to Agric Ministry for 2021 National Farmers Day

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tanbic Bank Ghana, in keeping with its commitment to support the development of Ghana’s agricultural sector and the National Farmer’s Day, has handed over a Nissan Navara pick-up truck to the Ministry of Food and Agriculture (MoFA) for the National Farmer’s Day Celebration, which comes off on December 3. The truck, which is presented to the Second RunnerUp, has been Stanbic Bank’s commitment to the National Farmer’s Day for the past 14 years.

Mr Yaw Frimpong Aidoo, the Deputy Minister in Charge of Crops and the Chairman of the 2021 National Farmer’s Day Planning Committee, who received the truck on behalf of the Ministry and the Planning Committee, praised Stanbic Bank for their consistency in not only supporting the Farmer’s Day Celebrations over the years, but also for their interventions in Ghana’s agriculture value chain.

“On behalf of the Ministry, I thank Stanbic Bank for always being there for farmers and fisherfolk. Even before I came to this Ministry, I knew Stanbic Bank was a life-long partner to farmers and fisherfolk. While others have

fallen along the way, they have been consistent, unrelenting and religious with their support to Ghana’s agriculture sector. They always fulfil their promises and I know for a fact that the farmers and fisherfolk acknowledge this and are appreciative of their contributions over the years.

Once again, on behalf of the Ministry of Food and Agriculture, we thank you so much for always supporting,” Hon. Frimpong Aidoo said.

The Head of Brand and Marketing at Stanbic Bank Ghana, Mr. Mawuko Afadzinu, who led the Stanbic Bank team to present the vehicle mentioned that the bank has been resolute in their support for Ghana’s agricultural sector because the bank acknowledges the role of agriculture in creating prosperity for the country.

According to him, “We have been doing this for the past 14 years for a reason. We say that Africa is our home, Ghana is our home and prosperity and we know that there is a lot of prosperity in the land and waters that is the reason why it is very important for us to support our green value too. Indeed, our vision is to take some of the best practices in Africa and make sure that we have the means in Ghana. We believe that not only does agriculture feed the nation, it is also a very valuable area for employment opportunities. And talking about employment opportunities, it is not only working on the farm but all the other things you can do with the produce of agriculture and if you look at other countries the lessons are there for Ghana to take.”

“So, our support for agriculture is steadfast for a simple reason, Ghana’s economic growth. And we will continue to partner with you, and continue to provide the best solution for farmers and to every part of the value chain because by making the nation prosperous, we also have the right space to thrive,” Mr. Afadzinu added.

The National Farmers Day is commemorated each year to honour Ghana’s Fishers and Farmers for their labour and tireless commitment to feeding the nation’s ever-growing population as well as contributing to Ghana’s foreign exchange earnings.

This year’s, which is the 37th edition, will be held from November 29 to December 3, 2021 at Cape Coast in the Central Region. The theme for celebrations is Planting for Food and Jobs – Consolidating Food Systems in Ghana. The celebrations will start with an Agricultural Fair, Exhibition and Regional Focus Days and a climax of a Grand Durbar and Award Ceremony on Friday December 3, 2021.

Dr. Emmanuel Ifeanyi Ani delivers lecture on tackling the monetization of politics with a points system control the menace. For example, many countries face because

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r. Emmanuel Ifeanyi Ani, a Senior Lecturer in the Department of Philosophy and Classics, School of Arts, College of Humanities at the University of Ghana, has noted that “the extremely expensive cost of vying for political office has rigged electoral processes in modern democracies in favour of the super-rich, imposing plutocracy on mankind in the most forceful way in history.”

Dr. Ani made these remarks when he delivered an InterCollege Lecture Series on the Topic: “Tackling the Monetization of Politics with a Points System”.

The lecture which was held on November 18, 2021 was organised by the College of Humanities and chaired by Provost of the College and Acting Pro Vice-Chancellor in charge of Academic and Student Affairs, Professor Daniel Frimpong Ofori.

Dr. Ani set the tone of the lecture by explaining his choice of the topic which he believed would provoke some thinking and discussions. He opined that

that the crux of the matter is that “contemporary democracy lacks any templates, guidelines or criteria for evaluating the merit of candidates for political office.”

He lamented that because of this worrying fact, “three bad king makers” namely; money, charisma and promise-making had dominated the emergence of leaders. He cited Adolf Hitler and Idi Amin as examples in the charisma category.

He also showed that it is obvious worldwide that promises are worth very little in politics.

Addressing the worrying issue of monetization of politics in Africa, Dr. Ani traced several examples of electoral systems and their processes that favour only the corrupt and rich in society and where vote-buying was rampant.

The Lecturer also pointed out that two basic effects of monetization on determining leaders are political corruption and widening inequality, while government interventions and subsidies have been used to try to

contribution and spending limits have been explored by several countries however, these measures have not produced the equalizing and sanitizing effects intended.

He argued that a points system is the answer and thus, awarding points or ratings to public office holders for achievements whilst in office and to new entrants for occupational and crossoccupational achievements before their political careers is essential. Dr. Ani proposed that, for incumbents, economy ratings, educational ratings, health ratings, security ratings and even peace ratings could be used.

The lecturer who has taught Critical Thinking and Practical Reasoning for several years at the University of Ghana and a member of the American Philosophical Association added that his work is not intended to present a designed and finished points system but a collection of suggestions that could be adopted.

In his view, the predicament

of monetization of political systems is not a lost cause and could be rectified with further and intensive research by other individuals or groups who may adopt or possibly revise his proposal. To demonstrate that the points system could make a significant difference because ratings regulate character and can shift the political arena from financial to performance intensification, the lecturer gave numerous examples of these effects in different areas of life where ratings are used.

In his concluding remarks, Dr. Ani reiterated that a system without points is aimless, rudderless and permits the dominance of too many misleading leadership indicators. However, by contrast, a points system introduces some quantification, systematization, and comprehensiveness in voter reasoning. The points system can also salvage political merit from political money without necessarily infringing on liberty.

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How digital transformation is changing the insurance industry in the world

By Rev. Frank Bible Dogbatse

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here are countless examples of how digital transformation of insurance has changed the industry.

Operations are streamlined, customer interactions are done via chat, claims can be processed automatically, and brokers can aggregate all their information to work faster and more accurately.

But the real impact of digital transformation on insurance can be summarized in four benefits: Efficient – The first and most obvious effect of digital transformation on insurance is the efficiencies it enables.

Primarily powered by AI and its related technologies of machine learning and predictive analytics, almost every facet of insurance operations have been optimized for speed. Claims can be processed via an app instantly, and policy writing can be done in less time with machine learning capabilities.

Digital transformation is also speeding up customer service, where live

chat and digital assistants are helping customers in their most important times of need.

Personalized – Customers today expect service and attention where and when they want it.

They also expect it to be suited to their needs, and personalization is now the status quo across all industries. Digital transformation is empowering insurers with the tools they need to give customers excellent service without overextending their resources.

AI and machine learning create a seamless personalized experience for customers and brokers alike.

Customers can pay bills, view policies, and file claims via an app, and brokers can receive and process all information on their end under one system. No more waiting on the phone, wondering if your claim is received and being processed; digital technologies are giving customers instant feedback and helping brokers do their jobs more efficiently and effectively. Digital transformation in insurance is also helping to personalize marketing efforts.

Robust data analytics and AI systems can tailor and target marketing efforts for insurers, using the power of social media to reach audiences they can truly impact.

Scalable – The digital transformation of the insurance industry is also helping it to become more nimble and scalable at both the front end and back end of operations. While insurance historically could be a bit “clunky,” technology today has made it flexible to current demands. On the customer-facing front, insurers today offer service everywhere and anywhere via self-service dashboards and apps and can collect valuable data from customers via IoT-enabled devices and even wearables. On the back end, this technology is collected and helps brokers and insurers make more accurate decisions on underwriting, policies, new product offerings, and more.

Agile – Digital transformation is also helping insurers “futureproof,” as these technologies

will undoubtedly continue to evolve and create more advanced opportunities for years to come.

The foundation that is being laid by AI, machine learning, blockchain data, data analytics, and predictive analytics will help insurers grow and adjust with new insurance technologies and capabilities.

These technologies are just the tip of the iceberg for the insurance industry. To be prepared for a digital future, insurers today must adopt the tools of digital transformation and find creative ways to optimize all areas of their operations. In fact, 90% of insurance executives today state they have a coherent, long-term plan for technology innovation in place.

The digital transformation of insurance operations is reshaping the current and future state of the industry. The future is now .

The author is the president of SIC LASE as well as Founder and Head Pastor of the United Faith Temple International.

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NPA identifies four sites for Ghana's first nuclear plant

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he Nuclear Power Ghana (NPA) says it will by the end of 2022, select one of the four sites identified for the construction of the Ghana's first nuclear plant.

Dr Stephen Yamoah, Executive Director, NPG, speaking at a workshop for media professionals on Ghana's steps into nuclear future, said under phase two of the project, the selection of a preferred site was being undertaken, including the analysis of historical data in all four areas.

He said under the first phase of the programme, technical consideration for the establishment of a Nuclear Power Programme in Ghana had been completed.

He said the country's nuclear programme had been justified on the need for alternate baseload power for industrialisation, limited hydro sources, postulated decline of gas, tariff reduction for industries, desalination, employment creation and climate change commitments.

He noted that the second phase included the selection process, project structure and integrated management system, selection of vendor or strategic partners and community engagement and stakeholder management.

Even though no disclosures were made particularly on the identified site, Dr Yamoah said seismological installation, geological, geochemical, potential human induced events, grid issues among others were already underway on the site.

He said some policy, strategies and detailed planning were being put in place for implementation and project development while considering technical inputs in identifying the particular site for the nuclear power plant.

"We're on course to complete the second phase of the site selection activities next year which ends with the identification of the nuclear plant site by the end of next year."

He said once the site was selected, attention would be given to the site and detailed and further investigation conducted to be incorporated into the design of the power plant.

He said in June this year, with the support of the Ministry of Energy, Ghana issued a request for information to solicit information on both technical and financial information from vendors and strategic partners who would provide modular reactors for building the nuclear plant.

The Executive Director said five out of six vendor countries

had expressed interest to provide large reactors to supply between 700 to 1200 megawatts of energy, and nine Small Modular Reactors to provide between 300 megawatts and below of energy for the nuclear plant.

He said NPA was expected to submit recommendations of the Request For Information (RFI) to the Government and await its declaration of the country's decision to go nuclear after which a discussion for a contract would be initiated.

Mrs Linda Asante Adjei, Vice President, Ghana Journalist Association, in a speech, said although Ghana was often lauded as a model for African democracy, not much had been achieved in the area of energy.

To achieve this, she said, the

country needed a strong political will and involvement of all stakeholders requiring the vital role of the media and journalists in that regard.

She said whilst the energy sector continued to evolve and shift from conventional sources of energy to cleaner sustainable resources such as wind, solar and biomass waste, societal awareness on product availability and diversified uses remained a knowledge gap.

She said the Ghana Journalist Association's partnership with the Nuclear Power Ghana, which started in September 2020, was therefore timely as the media remained a driver of the issues in the energy sector to educate and provide information to the general public.

GMES Africa holds first technological conference

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he Global Monitoring for Environment and Security (GMES) and Africa Project has held its 1st Technological Conference and 3rd Regional Meeting under the theme, “Accelerating Technological Innovation Growth in West Africa”.

In a welcome address, the Registrar, Mrs. Emelia AgyeiMensah expressed the University’s pride in leading a consortium of seven (7) institutions from West Africa to implement a project on marine and coastal head observation services for the Sub Region.

Mrs. Agyei-Mensah noted that the youth are Africa’s greatest assets, and it is crucial they are introduced to entrepreneurship, through networking and capacity building initiatives. She was happy many young people who were participating in the conference were representing

start-up companies vying for various awards as part of the GMES and Africa Incubation Challenge during the conference.

Prof.

Boateng OnwonaAgyeman, Provost, College of Basic and Applied Sciences, in a speech delivered on behalf of the Vice–Chancellor, explained that the University’s science and technological capacity building effort is geared towards developing world class scientists to meet national and global developmental needs.

Prof.

Onwona-Agyeman charged the GMES and Africa

marine consortium to see their role as partners to realising the worth of the oceans to Africa’s economic freedom. “We are endowed with rich coastal and marine resources and we can only maximise their benefits when we are able to exploit them in a sustainable manner”, he said.

The Chief Director of Ministry of Environment, Science, Technology and Innovation, Mrs. Cynthia Asare Bediako, who delivered the keynote address on behalf of Dr. Kwaku Afriyie, the Minister, congratulated the University and GMES and Africa

for hosting a unique and important event in Ghana. She encouraged the partners of the consortium to continue in their effort to find lasting solutions to challenges in the marine environment.

She stated that the Blue Economy has the great potential of turning Africa’s fortunes around, if sustainably managed or harnessed since Africa’s Blue Economy generates close to $300 billion and is expected to increase beyond half a trillion dollars by the end of the century. Thus, it has the potential of creating millions of jobs for the continent to overcome poverty.

Mrs. Bediako encouraged GMES and Africa to take stock by assessing their contribution to the achievement of the Blue Economy and other environmental issues with Phase one of the programme coming to an end in December 2021.

11

Comment/ Analysis

WEDNESDAY NOVEMBER 1, 2021

The high stakes of rising inflation

By Otmar Issing

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any countries are reporting their highest rates of inflation in decades: 6.2% in the United States, 4.2% in the United Kingdom, 5.2% in Germany, and above 4% in the eurozone. Some insist that it is a temporary phenomenon; others fear that we must brace ourselves for an extended period of significant price increases driven by expansionary monetary policies and rising public debts.

Still, both camps agree that at least some of the factors behind the recent inflationary surge will soon subside or disappear. In 2020, prices rose only slightly, and even declined in some cases, setting a low baseline for the yearon-year increase in 2021. Surging prices for heating oil, gas, petrol, and diesel are also generally considered to be temporary. A significant decline in headline inflation can thus be expected in most countries in 2022.

In the longer term, however, we must adapt to higher fossilfuel prices in order to fight climate change. Similarly, though the across-the-board price spikes in building materials, computer chips, and raw materials are not expected to continue indefinitely, nor are we likely to find lasting relief.

After all, the problem is global. When China fully entered world markets in the 1990s, the resulting flood of cheap goods placed downward pressure not only on prices but also on wages.

Trade unions, concerned about job losses, were reluctant to demand higher wages. But now, these pressures are easing.

It would be a mistake to think that globalization has ended, but the fact is that international

economic integration has slowed, owing to the COVID-19 crisis, the Trump administration’s protectionism, and the decline in the Chinese labor supply as its population ages. As a result, the global economy is more likely to exert more sustained inflationary pressure than in the past.

The argument that today’s inflation is only temporary assumes that global unemployment remains substantial, and that trade unions are weak. In that case, there would be no reason to expect that wages will increase significantly, leading to a sustained rise in prices.

But that may not be the case, because the global economy is at a turning point: conditions may be shifting from deflationary to more inflationary overall. At the national level, wages are being driven up by labor shortages in many sectors. The scarcity of truck drivers in the UK, for example, has translated into considerably higher wage offers. Of course, the economic slump caused by the pandemic was not comparable to a normal downturn, so it remains to be seen how long it will take for these sectoral wage increases to spread throughout the economy.

In any case, it is monetary policy that determines the course of inflation. In the short term, central banks can do nothing to prevent a price surge caused by factors such as rising energy costs, nor should they try to do so. What matters is that citizens and financial markets do not lose confidence in central banks’ determination to stabilize inflation (typically at around 2%) over the medium term. So far, the flooding of financial markets with liquidity – notably through massive bond purchases – has played a major role in driving up asset prices. The danger

now is that this price inflation, combined with a large expansion of the money supply, will spread to consumer prices, which are also affected by the sharp rise in public debt.

The US Federal Reserve and the European Central Bank (ECB) consistently assume that today’s inflationary expectations are firmly anchored at the target level of 2%, and most published inflation expectations for the US and the eurozone appear to confirm this view. But these central banks’ own massive bond purchases are distorting market expectations.

Investors with higher inflation expectations tend to sell their bonds to the central bank at prices that they regard as high. As a result, these inflation pessimists are absent from financial markets, causing the thermometer of inflation expectations to read lower than the actual temperature. In fact, comments from citizens, consumers, and employees in many countries increasingly suggest doubts about the stability of inflation expectations at the level claimed or desired by central banks.

With inflation having been off the radar for many years, it is no surprise that expectations are oriented to the past, when the dominant expectation was that price stability would continue.

Central banks’ credibility played a decisive role in backstopping that view. But credibility can always be called into question. After the anticipated decline in early 2022, what if inflation rates were to rise again and then remain above the 2% level for an extended period? Inflation expectations could become unanchored and suddenly shift upward.

This risk should not be underestimated, especially

when the topic of inflation has become salient almost everywhere, indicating a clear change in citizens’ attitudes. To paraphrase former Fed Vice Chair Alan Blinder, inflation occurs when people start talking about inflation.

In this context, it is also important to examine the changes to monetary-policy strategy that the Fed and the ECB have made.

With its shift to “average inflation targeting,” the Fed is aiming for inflation above 2% in order to compensate for undershooting that target in the past. Yet in the new environment of mounting inflationary pressure, the Fed’s credibility could be severely tested.

Likewise, the ECB has signaled with its new strategy that it will take a far more relaxed view of inflation hitting levels above 2% than it did in the past. Again, the credibility established over many years of doing whatever it took to preserve the value of the common currency could now quickly be called into question.

The world is undergoing profound change. Central banks face a high degree of uncertainty for which their traditional models may no longer be reliable. But that is even more reason to ensure that there is no doubt about their determination to defend the stability of the currency. Continuing large bond purchases and fixing policy for longer periods through forward guidance have become less appropriate than ever.

Otmar Issing, former chief economist and member of the board of the European Central Bank, is President of the Center for Financial Studies at Goethe University, Frankfurt.

12

Maritime

WEDNESDAY NOVEMBER 1, 2021

BOST finally takes delivery of pipelines for Tema-Akosombo petroleum project

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bout five thousand, four hundred (5,400) 12-inch pipes, expected to be used to expand the petroleum transportation line between Tema and Akosombo, have been delivered through the Port of Tema.

The pipes which cost Ghana about USD63.2 million, and an additional USD$8 million to refurbish them, will cover a distance of 70km.

The delivery of the said pipes had however been stalled for over 12 years since its procurement as a result of the Bulk Storage and Transportation Company (BOST) and the US supplier not being able to reach an amicable agreement to pave way for shipment.

When installed, it is expected to reduce the cost of transportation of Ghana’s bulk petroleum products drastically, while delivering 2 billion litres on an annual basis.

Installation of the pipes is expected to be done mid 2022 for about a period of 18 months.

Speaking to the press, during the official handing over ceremony, the Board Chairman of the Bulk Storage and Transportation Company (BOST), Ekow Hackman remarked that the company’s transformational agenda is clearly demonstrated through the arrival of the pipes in

BOST MD, Edwin Provencal (2nd from left), Board Chairman, Ekow Hackman (middle) and other high-ranking officials of the company inspecting the pipelines at the Tema Port

Ghana.

Mr. Hackman said, “I’d like to assure the general public the management and staff of the company that the Board would continue to support the management in the fulfilment of its strategic plan to turn the company into the strongest actor in the downstream sector of our part of Africa providing fuel security to the nation and others in the region.”

Managing Director of BOST, Edwin Provencal, revealed that the installation of these lines is in line the company’s strategy to improving the proportion of product volumes carried through

the cheapest transportation channel.

He said, “this arrival could not have come at a better time than now when the reactivation of the Bolgatanga depot for export has made it more than necessary for high volumes of petroleum products to be transferred between Tema and Akosombo for onward distribution to Buipe through our river barges to meet the surging demand in the Northern sector as well as the landlocked countries.”

The BOST MD revealed that the company is poised to improve operational efficiency, expand its assets, and contribute

meaningfully to Ghana’s strides to benefit from the African Free Continental Trade Area.

He added that “a properly functioning BOST would surely serve as an instrument for maximizing the returns the nation could derive from the AfCFTA through the importation and re -exportation of petroleum products in the West African subregion which would shore up our reserve and contribute to the stability of our foreign exchange rate. This is because we will export in United States Dollars and use the same amount of money to import the petroleum products in United States Dollars.”

E-Levy will not disrupt trading in the continental market

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rade Practitioner and AfCFTA expert, Louis Yaw Afful has opined that continental trading under the Free trade agreement would not be derailed by the introduction of the e-levy policy by government.

He explained that “the

continental free trade area is not barring any country from doing something like that. In fact, Kenya is one of the countries that started this. These are internal means of generating of funds and does not infringe upon the activity of another member state by doing

that.”

Mr. Afful however did say that “the only way it would have a negative impact on AfCFTA is where under the services sector such as telecommunications, different rates are applied for a Ghana-originating service

provider and one from a different African country. That won’t be a fair practice under AfCFTA.” Speaking on Eye on Port, the AfCFTA expert indicated that the e-levy policy has been introduced by government as an innovative way of widening the tax net.

He said “because most of the trading in Ghana has been in the informal sector and government had to find ways to generate much internally. At the continental trading level this would not affect digital trading because the transaction is internal and not done at the border.”

Louis Yaw Afful, who is the Executive Director of the AfCFTA Policy Network (APN) said this move also aligns with the ambition for party states to increase internally generated revenues, as countries are to work towards 90percent tariff liberalization.

He predicted that many countries participating in the AfCFTA would follow suit.

13

Banking& Finance

WEDNESDAY NOVEMBER 1, 2021

Who qualifies for mortgage financing?

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he natural disposition of many people in this part of the world when they hear mortgage financing is dismissive because to them, it is a high-end facility, which is the preserve of a certain class of people. As complex as it has been made to look, a mortgage is simply taking a conventional loan to finance a home purchase, home building or home remodeling.

Qualification for a mortgage is quite basic. Every working Ghanaian that earns an income of a sort is eligible for a mortgage.

So long as an individual earns a stable and consistent income that can be used to service the loan, she/he qualifies for a mortgage.

The only caveat to this, however, is that at the end of the month when the deduction is made, the individual must have enough left

to see her/him through the rest of the month. What this means is that the amount of mortgage one gets is dependent on your income level.

What is critical is affordability.

You must be able to afford servicing your mortgage without having to bend over. Your ability to repay the loan is the major consideration the bank or lending institution will make before granting the facility and as such, you must be sure that you can afford the mortgage before applying for it. Another important thing potential home owners must consider is their age. The bank or lending institution will take a critical look at the age of the applicant in order to compute the remaining number of years to retirement and the amount the applicant has to pay. This is

because the facility will be tied to the number of years to retirement in the case of salaried employees.

Also, banks and lending institutions like to look at credit histories through a request to credit bureaus to make the borrower’s credit file available.

This allows them to make a more informed decision regarding mortgage prequalification.

Through the credit report, lenders acquire the borrower’s credit score, which represents the statistical summary of data contained within the credit report. It includes bill payment history and the number of outstanding debts in comparison to the borrower’s income.

The higher the borrower’s credit score, the easier it is to obtain a loan or to pre-qualify for a mortgage. If the borrower routinely pays loans late or default, then a lower credit score is expected. A lower score may persuade the lender to reject the application, require a large down payment, or assess a high interest rate in order to reduce the risk they are taking on the borrower.

Many people have issues on their credit report which they are unaware of. The first step in determining if you have any outstanding issues is to get a copy of your credit report or assess your own credit worthiness before you approach a bank or a lending institution.

Moreover, as a matter of

practice, some lending institutions will require potential home owners to have a transactional relationship with them or even pick your history from whichever bank or institution you transact business with for your financial history. For some banks in Ghana, you will need to bank with them for a period before they can grant a mortgage facility. For others, such as Stanbic Bank, they will only pick history from your current banker, six months bank statements, and treat you as an existing customer.

Acquiring a mortgage can be a very easy and simple process depending on the lending institution. It is very important to tick all the boxes before you embark on the journey of acquiring a mortgage facility. But as always, when in doubt, it is important to speak to an expert for guidance and direction.

Wendy Nelly Sarpong Head, Specialized Lending Stanbic Bank

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15

Energy

WEDNESDAY NOVEMBER 1, 2021

University and companies team up for research into hydrogen, a key resource in the fight against climate change

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new university-company joint research platform set up to study and develop an energy vector capable of playing a decisive role in the achievement of global climate objectives, i.e. hydrogen.

Announcing the Hydrogen Joint Research Platform (Hydrogen JRP) created by Fondazione Politecnico di Milano, together with Politecnico di Milano and three founding companies, Edison S.p.A., Eni S.p.A. and Snam S.p.A. Hydrogen JRP will promote innovative studies and research in several areas: the production of clean hydrogen, which includes green hydrogen and low carbon hydrogen; associated transport solutions and advanced storage systems; innovative electrochemical and thermal applications for domestic and industrial use and in transport systems; and the development of best practices in the design and construction of hydrogen transport and storage infrastructure.

The intention is to stimulate the creation of a hydrogen value chain in Italy, to encourage company competitiveness and the growth of new high-tech companies. Hydrogen JRP is open to all companies that want to experience research and development into hydrogenassociated products and services, with the support of Italy’s first technical university and its laboratories.

To increase its impact, Hydrogen JRP will establish a strategic advisory body, which will involve all the main institutional stakeholders, including at global level, in view of attracting interest and investment.

Hydrogen JRP intends to take up the hydrogen challenge and build

an ecosystem of innovation.

Over the upcoming months, we will confirm JRP membership for companies interested in developing a hydrogen value chain. The platform enables the members themselves, depending on their membership level, to propose vertical research topics that encourage the advance of expertise and know-how within Italy’s energy industry.

Hydrogen can play a central role in addressing the current demand for progressive decarbonisation in many sectors.

In order to pursue this prospect and promote the production and use of hydrogen, one of Italy’s aims is to support hydrogen research and development, and complete all the reforms and regulations necessary to its use, transport and distribution. In Europe’s hydrogen strategy, the share of green hydrogen in its energy mix is projected to increase up to 13-14% by 2050.

Ferruccio Resta, Rector of Politecnico di Milano, explained: "Energy transition is one of the major challenges of our times.

We must persevere with two key concepts, firstly, to pursue a more forceful political path, aligning ourselves with European guidelines, based upon a phase of providing support to the industrial system, and secondly, to forge ahead in the area of research and training in order to become a global reference point for this technology. To be successful, we chart a common project where universities are operating at the side of companies. This is why we are today announcing our Hydrogen Joint Research Platform, which owes its launch to three great companies in this sector, their participation, capacity to listen and ability to ‘do’ innovation,

and why this platform must be able to expand as far as possible within Italy’s productive tissue”.

Andrea Sianesi, President of Fondazione Politecnico di Milano, added: “Hydrogen will play a crucial role in Europe’s green revolution, it is a flexible energy vector and potentially with zero environmental impact.

The Italian Government has given hydrogen a primary role in the country’s National Plan for Recovery and Resilience, specifically to respond to the needs of progressive decarbonisation in various sectors. We, as Fondazione Politecnico di Milano and in line with our mission of acting as a bridge between academia and the productive system, believe that it makes strategic sense to create a joint research centre to help establish an industrial value chain linked to hydrogen development, a centre that, with the backing of Italy’s first technical university and several leading energy companies, can drive innovation, while also targeting research of excellence and effective and impactful energy transfer for the development of Italy’s entire economic system”.

Giovanni Brianza, Executive Vice President for the Energy & Environmental Services Market at Edison, noted: “Hydrogen is an energy vector critical in achieving our decarbonisation objectives in transport and “hardto-abate” sectors of industry.

The biggest challenge today is to accelerate its development, so that it becomes economically sustainable, and also to give life to a new industrial chain, injecting impetus into the Italian economy, and confirming the value of our skills and expertise on the international stage. We are working with the Hydrogen

JRP platform, Politecnico di Milano, Eni and Snam to place the foundations for such an invaluable common enterprise.

We can also confirm that Edison is playing a fundamental role in the hydrogen sector and is resolute in supporting research and development in this field”.

Francesca Zarri, Research Director Technology, R&D and Digital at Eni, stated: “Research and development is one of the pillars underpinning Eni’s strategy of totally abolishing emissions for industrial processes and products, as well as being the key for a fair and successful energy transition. This project is inserted within the network of collaborations with primary universities and research centres, nationally and internationally, that Eni is developing to accelerate the industrialisation of innovative technology in the field of decarbonatisation and renewables”.

Cosma Panzacchi, Executive Vice President for Hydrogen at Snam, noted: “Snam has joined Hydrogen JRP with the firm intention of contributing to the growth of the R&D system, in order to strengthen Italy’s hydrogen chain and thereby accelerate its diffusion, while exploiting current infrastructures, and galvanising the energy transition.

This initiative is in line with Snam’s commitment to back the most promising technologies in the hydrogen ecosystem through projects like the Hydrogen Innovation Center, launched in collaboration with some of Italy’s primary universities, including Politecnico di Milano, and HyAccelerator, the first corporate global-scale acceleration programme for hydrogen startups”.

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WEDNESDAY NOVEMBER 1, 2021

17

African Economy

WEDNESDAY NOVEMBER 1, 2021

AfDB postpones 2021 Africa Investment Forum

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he African Development Bank Group has announced the indefinite postponement of its upcoming Africa Investment Forum, originally scheduled for December 1-3, 2021, in Abidjan, Cote d'Ivoire.

The postponement follows "consultations with the Government of Côte d’Ivoire and the Board of Directors of the African Development Bank Group," and occasioned by the "rising global travel restrictions due to the Covid-19 Omicron variant, and heightened concerns for health and safety..."

President of the African Development Bank Group, Dr. Akinwumi Adesina who announced the postponement, described The Africa Investment Forum as the premier investment marketplace for Africa, with several billion dollars of investment projects scheduled for investment boardrooms and with project sponsors and investors expected at this edition of the

Africa Investment Forum.

The African Development Bank Group and the Africa Investment

Forum partners are indebted to President Alassane Ouattara and the Government of Côte d’Ivoire

for their exceptional and gracious support.

Blue economy in Africa: AfDB explores the continent’s off-shore renewable energy potential

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he African Development Bank’s African Natural Resources Centre and the Sustainable Energy Fund for Africa have hosted the first in a series of webinars discussing the potential of Africa’s blue economy.

The webinar, held on November 23, centered around a study on the potential of offshore renewable energy in Africa commissioned by the African Natural Resources Centre as part of a series to inform policymaking, planning, and investment in blue economy strategies in Africa. The findings were presented by Linus Hammar from Octopus Ink Research & Analysis, Sweden.

The audience was treated to an analysis of the potential of the offshore renewable energy that Africa possesses, beginning with an overview of coastal and island countries and prospects for commercial development.

According to Leontine Kanziemo, Advisor on Natural Resources Management at the African Natural Resources Centre, “Offshore renewable energy

can considerably support the expansion of renewable energy capacity, for coastal and island countries, while helping to lower the energy costs associated with importing fossil fuels.”

Olivier Ceberio, Chief Operation Officer at Resolute Marine Energy, and Philippe Ong Seng, Chief Executive Officer at Urban Cooling Ltd, presented case studies of offshore energy projects supported by the Sustainable Energy Fund for Africa.

According to Ong Seng, who presented the Mauritius Deep Ocean Water Applications project, coastal countries in Africa and small island developing states have valuable renewable, reliable and sustainable cold energy, stored in deep seawater, which can be exploited commercially and used for air conditioning.

“Financial institutions like the African Development Bank and other green energy funds should work with authorities in Africa and the small island development states to mobilize concessional finance to implement seawater

air conditioning projects in their mitigation and adaptation efforts to combat the adverse effects of climate change and reduce dependence on fossil fuels,” he said.

Dan Grech, Director at Global OTEC Resources Ltd, presented the Ocean Thermal Energy Conversion project in São Tomé and Príncipe. He said: “At Global OTEC our vision is that small islands serve as a vital entry market for de-risking smaller-scale OTEC plants, amassing operational data and showing funders and insurers a track record, which will enable the mass scale-up across coastal countries all around the world.”

João Duarte Cunha, Manager of

the African Development Bank’s Renewable Energy Division and Head of the Sustainable Energy Fund for Africa, emphasized the need for seeing pilot projects through to bankability and commercial operations.

He underscored the role of development and climate finance institutions in providing the capital needed to support initial deployments and achieve scale.

The Sustainable Energy Fund for Africa is a multi-donor special fund that aims to promote private sector investment in sustainable energy, in line with the Bank’s New Deal on Energy for Africa and Sustainable Development Goal 7, relating to universal energy access.

The African Natural Resources Centre generates high-quality knowledge and engages in policy dialogue. It also provides technical support to regional member countries on natural resources planning, investment, and governance, with a focus on land, forestry, fisheries, water, oil, gas, and minerals.

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WEDNESDAY NOVEMBER 1, 2021

19

Feature

WEDNESDAY NOVEMBER 1, 2021

The sustainability standards battle

By Howard Davies

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he recent United Nations Climate Change Conference (COP26) in Glasgow was, it seems, a historic success. We have this on no lesser authority than that of UK Prime Minister Boris Johnson, who happened to be the meeting’s host. COP26 President Alok Sharma also was upbeat afterward regarding the 2015 Paris climate agreement’s target of limiting global warming to 1.5º Celsius above pre-industrial levels. “We set out by saying we wanted to keep 1.5ºC within reach,” Sharma said. “We did do that.” And Johnson claimed that there was little difference between the proposed COP26 agreement to “phase out” coal usage and the final text, which pledged only to “phase down” coal.

Others took a different view. Perhaps predictably, the teenage Swedish climate activist Greta Thunberg described the conference categorically as “a failure.” Climate Action Tracker projects that even if all the COP26 pledges stretching into the future are met, the planet is on track to warm by at least 2.1ºC. And India is phasing out in the particular sense of phasing in, with coalpowered electricity generation expected to increase by almost 5% per year this decade. The Financial Times’s Martin Wolf hedged his bets. For him, COP26 “was both triumph and disaster.”

But for the private business sector, and especially for banks and other financial firms, the conference on the chilly banks of Glasgow’s River Clyde may well prove to have been a watershed moment. Although the cloud of coal dust obscured other issues, the gathering made some significant progress.

Consider a major issue impeding progress toward greening the business sector: the absence of a clear, generally agreed framework for reporting the climate impact of corporate activity. The problem is not that there is no framework at all, but rather that several competing models present different pictures.

The Sustainability Accounting Standards Board (SASB) in the United States, established by the Value Reporting Foundation (VRF) and supported by Bloomberg, has developed one model. The World Economic Forum (WEF) has worked on another. The Global Reporting Initiative (GRI), based in Amsterdam, has produced a wide range of sustainability standards. And the Task Force on Climate-Related Financial Disclosures (TCFD), convened by the Financial Stability Board (FSB) in Basel, recommends a set of disclosures that many banks have adopted under pressure from their regulators – many of whom are members of the Network for Greening the Financial System (NGFS).

That, you may think, is quite enough acronyms for one paragraph. But another one entered the field of battle in Glasgow. The Chair of the Trustees of the International Financial Reporting Standards Foundation, Erkki Liikanen, announced the creation of the International Sustainability Standards Board (ISSB) to sit alongside the foundation’s other offspring, the International Accounting Standards Board (IASB). The new board will be based in Frankfurt (no doubt the Germans will avoid another acronym by melding the four words into one). The ISSB will aim to produce standards that “will help investors understand

how companies are responding to ESG [environmental, social, and governance] issues, like climate, to inform capital allocation decisions.”

There is no doubt that standardization is needed, and the organization that has produced a suite of international accounting standards looks like the obvious body to take on the job. But will the ISSB attract enough support to knock together the other acronyms and carry the day?

One obvious problem is that after years of effort by the IASB to reconcile its standards with those of the US standard-setters, the Americans have still not adopted them and seem unlikely to do so. Given opposition from most of the US accounting profession, the US Securities and Exchange Commission is reluctant to push the idea onto a suspicious Congress.

There is also hesitancy on the other side of the Atlantic, where the European Commission has been working on its own taxonomy of green and brown assets. In an interview that the European Central Bank supervisors circulated to banks in the week after the ISSB announcement at COP26, John Berrigan, the Commission’s financial services director-general, discussed the EU’s taxonomy and plans for a new Sustainable Finance Disclosure Regulation, without mentioning the ISSB. Nor did Berrigan mention the other major financial-sector initiative to emerge from COP26: the Glasgow Financial Alliance for Net Zero (GFANZ) assembled

by Mark Carney, the former FSB Chair who is now the UN Special Envoy for Climate Action and Finance. Carney has corralled 450 banks and insurers to, among

other goals, mobilize trillions of dollars of capital to finance decarbonization in emerging and developing countries. The precise figure he quoted, $130 trillion, has raised a few skeptical eyebrows, but the scale of the ambition is impressive, and most banks of any consequence have signed up to the scheme.

These developments reflect the sea change in financial-sector opinion on climate change in the last couple of years. Pressure from some outspoken investors has contributed to this shift, while regulatory stress tests have exposed the vulnerability of loan portfolios to rising temperatures and policy-driven increases in the carbon price. But bankers are people, too. They now believe they will sleep easier and be able to look their children in the eye if they are part of the green transition, rather than holdouts myopically financing the last ton of mined coal and the last barrel of Brent crude.

The ISSB and the GFANZ could give bankers the tools they need to help their clients fund and manage the green transition. And US and European authorities, if they bury their differences, could allow those good intentions to be translated into more effective action.

That would mean fewer acronyms – and, more importantly, a clearer path to net zero.

Howard Davies, the first chairman of the United Kingdom’s Financial Services Authority (1997-2003), is Chairman of NatWest Group. He was Director of the London School of Economics (2003-11) and served as Deputy Governor of the Bank of England and Director-General of the Confederation of British Industry.

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Markets

WEDNESDAY NOVEMBER 1, 2021

WEEKLY MARKET REVIEW FOR WEEK ENDING NOVEMBER 26, 2021

CONTINUED ON PAGE 21

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WEEKLY MARKET REVIEW FOR WEEK ENDING NOVEMBER 26, 2021

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BUSINESS24.COM.GH WEDNESDAY NOVEMBER 1, 2021

NO. B24 / 281 | NEWS FOR BUSINESS LEADERS

MONDAY MAY 3, 2021

WEDNESDAY DECEMBER 1, 2021

Kwaku Nhyira-Addo joins Asaase Broadcasting

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saase Broadcasting Company Limited has announced the appointment of Kwaku NhyiraAddo as Brands Communication Manager.

Kwaku will join the Management team reporting to the General Manager, Prince Moses Ofori-Atta.

In his role Kwaku Nhyira-Addo will lead the strategic vision of making the Asaase Radio brand visible and strong as one of the respected media organizations across Africa.

Kwaku brings an extensive media, brand management and leadership experience to Asaase Broadcasting Company Limited.

He joins Asaase Broadcasting from the Multimedia Group where he initially served as Head of Talk Programs and most recently as Head of Strategic Partnerships and Thought Leadership.

“I am really looking forward to the new challenge of teaming up with like-minded people at Asaase Broadcasting to build a pan African media organization that will push the boundaries of creativity and serve our audiences content that will impact lives on the African continent and beyond.” said Kwaku.

Prince Moses said “We are very excited to have Kwaku join the team of passionate polyvalent individuals working together to redefine broadcasting in the digital age and I am in no doubt that with his vast experience,

passion and dexterity both on and off-air he will help Asaase Broadcasting deliver on its vision.”

Under Kwaku’s leadership, Asaase Broadcasting will continue its forward march to grow its

content portfolio and presence in the market as well as the hearts and minds of audiences wherever they may be on the continent of Africa and beyond.

Kwaku Nhyira-Addo starts work on December 1, 2021.

GSFP will pay second term arrears to School Feeding Caterers soon

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he Ghana School Feeding Programme (GSFP) will make payment of second term arrears to their Caterers

soon.

The Ministry of Finance has released the warrant to the Controller and Accountant

General to mobilise funds to defray the second term arrears for 2020 to 2021 academic year, a statement signed by Mr Siiba

Alfa, Head of Public Relations of the Programme, said work on the caterers’ payment filed and all relevant data for the payment of the second term arrears were complete.

It said they were awaiting the transfer of funds by the Controller and Accountant General to the Ministry of Gender’s account with the Bank of Ghana for onward disbursement to caterers.

The statement said Management was also making frantic efforts to ensure that all other arrears due the caterers were settled accordingly.

It commended caterers on the Programme for their patience and reiterated the commitment of the Management in ensuring that all arrears were paid to them.