Business24 Newspaper - June 17, 2020

EDITION B24 | 63

WEDNESDAY JUNE 17, 2020

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Gov’t revenue GH¢3.6bn off mark in Q1 OMCs raise fuel prices by 8% as IES predicts further hikes

BY BENSON AFFUL

MORE ON PG 3

GRA boss, Ammishaddai Owusu-Amoah, already had a difficult task of boosting domestic revenue and COVID-19 has made matters worse

BY NII ANNERQUAYE ABBEY

Government’s worst fears regarding the impact of the COVID-19 pandemic on its fiscal performance are fast becoming a reality, with the revenue shortfall for the first quarter of this year alone amounting to GH¢3.6bn.

The Bank of Ghana’s recently published Fiscal Developments Report stated that government recorded GH¢10.4bn in revenue and grants as against a target of GH¢13.9bn for the period.

Although revenue suffered multiple setbacks, its biggest decline came from tax revenue, which fell short of its mark by more than GH¢1.7bn, illustrating the pain the virus has caused the real sector.

The report stated that tax revenue – comprising taxes on income and property, taxes on domestic goods and services, and international trade taxes – amounted to GH¢8.4bn (2.2 percent of GDP), lower than the target of GH¢10.2bn (2.6 percent of GDP).

The tax revenue performance for the first three months of this year represents a year-on-year growth of 0.5 percent, which contrasts with the 18.9 percent growth recorded in the same period of 2019.

Although government projected to receive more than GH¢1.9bn from oil revenue within the period, the collapse in crude oil prices triggered by the pandemic had government receiving a little over GH¢300m.

Experts discuss digital banking in COVID-19 era MORE ON PG 3

ECONOMIC INDICATORS

Chartered Institute of Bankers goes virtual with programmes

Business Outlook & opportunities amidst Covid-19 pandemic

MORE ON PG 5

MORE ON PG 15

Chamber of Mines seeks “creative ways” to support local players PG 17 financially

*EXCHANGE RATE (INT. RATE)

USD$1 =GHC 5.6230*

*POLICY RATE

14.5%*

GHANA REFERENCE RATE

15.12%

OVERALL FISCAL DEFICIT

6.6 % OF GDP

PROJECTED GDP GROWTH RATE PRIMARY BALANCE.

1.5% -1.1% OF GDP

AVERAGE PETROL & DIESEL PRICE:

GHc 5.13*

INTERNATIONAL MARKET BRENT CRUDE $/BARREL

42.30

NATURAL GAS $/MILLION BTUS

1.78

GOLD $/TROY OUNCE

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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WEDNESDAY JUNE 17, 2020

EDITORIAL

TUC’s call is fair

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Wash your hands 2

The call by the Trades Union Congress that government’s business stimulus package to mitigate the impact of the coronavirus crisis on the economy must be tied to job security and given to only tax-paying companies is in the right direction.

Secretary-General of the Trades Union Congress (TUC), Dr. Anthony Yaw Baah, noted that it is imperative to set a precondition that obliges companies receiving such support to keep their staff and not lay them off after securing the funds.

“Our position is that any of these companies that is able to access this

support from the government must keep all of its employees. The main reason we are fighting for this is for people not to be sacked from their jobs. When you get this fund, the condition is that you keep all your employees, otherwise don’t come for the money. By this, we mean all those that are already in employment,” he emphasised.

The government, through the National Board for Small-Scale Industries (NBSSI), is providing GH¢600m stimulus in the form of soft loans to micro, small and medium enterprises (MSMEs). The

funds are being topped up with GH¢400m of credit commitments from banks. Aside keeping their staff, businesses seeking to access the funds are required to provide their tax identification number (TIN), which, according to Dr. Baah, is justifiable.

Business24 fully backs the call by organised labour and call on well-meaning companies to do well to keep their staff when they access public funds to help them navigate these difficult times.

Gov’t revenue GH¢3.6bn off mark in Q1 Cover your cough 3

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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)

(…CONTINUED FROM COVER )

Rising expenditure The report noted that government’ spending surged in the first quarter, in part due to unbudgeted expenditure to contain the COVID-19 pandemic, compensation to employees, and capital expenditures.

During the first three months of the year, the government spent GH¢20.8bn, representing year-on-year growth of 33 percent.

As far as compensation of employees is concerned, GH¢6.5bn was spent as against the planned GH¢5.9bn. To put that in perspective, it means that government spent nearly 65 percent of domestic revenue as at end-March 2020 to compensate its workers.

Other key expenditure items were interest payment, which took as much as GH¢6.4bn, although the amount spent was generally within what government had programmed.

However, expenditure incurred on infrastructure development for the period went up to GH¢2.5bn, although government had wanted to spend GH¢2.2bn.

With government incurring a fiscal deficit of 3.4 percent of GDP as against a target of 1.9 percent, the central bank fears that there is a real risk for the country’s debt.

“Elevated government spending in response to the pandemic exacerbated the substantial drop in domestic revenue resulting from the pandemic and falling oil prices. Going forward, fiscal policy will largely depend on how these two reinforcing factors evolve. The expanding deficit and the primary deficit

would exert pressure on the public debt stock, and alongside lower growth projections for 2020, may pose debt sustainability risks over the medium-term,” the bank said in its report.

GDP out today The Ghana Statistical Service is today expected to release the GDP performance for the first quarter of this year. This data will provide additional insight regarding the scale of the impact the coronavirus has had on the economy.

Ghana’s response to the pandemic, like in the rest of the world, has

seen widespread disruption to routine economic activities, with the Finance Ministry predicting that growth will fall to its lowest in nearly four decades.

Although the disruption caused by the virus has impacted almost every facet of the economy, the services sector has been the most hit.

Since March, the country has shut down its borders, sending the tourism sector, heavily dependent on foreign travellers, into a complete meltdown. The Trades Union Congress (TUC) says the thousands of jobs lost in the sector may not be recovered.

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OMCs raise fuel prices by 8% as IES predicts further hikes

BY BENSON AFFUL The Institute of Energy Security (IES) says prices of fuel on the local market have increased by 8 percent this week, and it foresees prices moving up further by roughly 3 percent.

The IES based its forecast on the 16.2 percent increase in Brent crude price, in addition to the 15.4 percent and 15.8 percent appreciation in the prices of gasoline and gasoil respectively.

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

“The possible upward price adjustments may not be close to the increases experienced over the last two weeks because other OMCs (Oil Marketing Companies) may hesitate to increase prices at the pump due to competition for market share,” the IES said.

It added: “Aside fuel prices seeing price of GH¢5.72 to the dollar over an upward change on the domestic the last 14 days.” market, the IES Economic Desk It said leading OMCs like Goil, Total found from the foreign exchange and Shell (Vivo) raised the prices of (Forex) market that the cedi gasoline and gasoil by 8.3 percent depreciated by 0.18 percent against to an average of GH¢4.44 per litre, the U.S. dollar, to trade at an average while the smaller OMCs raised their

prices by 7.5 percent, to put the current national average price of both gasoil and gasoline at GH¢4.38 per litre.

The IES market-scan nominated Santol Oil, Benab Oil, Nick Petroleum, Radiance, Champion,

Cash Oil, and Zen Petroleum as OMCs with the least-priced gasoline and gasoil on the domestic fuel market, relative to others in the downstream petroleum industry.

The IES’ assessment of the international oil and fuel market over the past two weeks showed that Brent crude price moved above the US$35 per barrel mark, hitting US$42.3 a barrel for the first time since March 10, 2020. The surge in the price of Brent can be attributed to the easing of restrictions on economic activities around the world, as well as reaction to the OPEC+ agreed extension to historic production cuts of 9.6m barrels per day (mbpd) till end July, it said.

Following this, Brent crude appreciated by 16.2 percent from US$33.72 per barrel recorded at the end of the first pricing-window of June to close at US$39.18 per barrel on average terms, the energy think tank said.

The IES added that Standard and Poor’s (S&P’s) Platts benchmark for fuels revealed the average gasoline price rallying by 15.4 percent to close at US$331.79 per metric tonne, while gasoil recorded a price appreciation of 15.8 percent to close trading at US$306.65 per metric tonne.

Experts discuss digital banking in COVID-19 era The Business24 Ghana Banking Sector Report (GBSR) webinar, focused on digital banking, comes off today at exactly 10am.

For two hours, experts drawn from the banking and financial technology sectors will deliberate on how banks are leveraging technology to better serve their clients in this COVID-19 era, and how financial technology will shape the future of banking.

Confirmed speakers and panelists include: Mr. Archie Hesse, CEO of the Ghana Interbank Payment & Settlement Systems (GhIPSS); Mr. John Awuah Deputy CEO, Ghana Association of Bankers; Mr. Sampson Akligoh, Director, Financial Sector Division, Ministry of Finance; Mr. Myles Hagan, Head of Channels, UMB; and J.N. Halm, Service Consultant.

Indeed, the COVID-19 pandemic has become a digital banking reality check for financial institutions and their customers.

Banks in almost every part of the world are moving away from traditional brick and-mortar banking and putting more emphasis on digital banking, which does not

on consumer behaviour.

The digitisation wave has also received impetus from policy developments aimed at leveraging and optimising the advantages of a cash-lite society to facilitate economic development.

The maiden Business24 Ghana Banking Sector Report (GBSR) webinar will engage the key actors in the digital banking space to review the landscape of banking/ financial services digitisation in Ghana, highlight innovations and their benefits to customers, discuss customer service expectations in a digital banking age, how policies and regulations are encouraging and responding to digitisation trends, the likely future path of digitisation, and the link between digitisation and government’s financial inclusion agenda.

The webinar can be accessed via https://us04web.zoom.us/j/798668 73347?pwd=VlVuK3VaemwxTU9EK y80VHNuSXc0QT09 only enhance their efficiency but makes the art of banking more convenient.

The Ghanaian banking industry

has been on a path of digital transformation in recent years, which is set to be accelerated by the Covid-19 pandemic and its impact

Meeting ID: 798 6687 3347 & Meeting Password: 962896

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WEDNESDAY JUNE 17, 2020

WEDNESDAY JUNE 17, 2020

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Media General celebrates Ghanaian fathers On Sunday 21st June 2020, the world will be celebrating this year’s edition of Father’s Day, a day set aside to honour fatherhood, paternal bonds and an occasion for the showcase of the love and gratitude people bear for their fathers.

Media General is marking this year’s Father’s Day, which falls on Sunday June 21, 2020, by inviting members of the general public to celebrate Ghanaian fathers and all other men playing the role of fathers in the lives of people who are not their biological children.

For this purpose, Media General is using its radio and television subsidiaries; TV3 Network, Onua TV, 3FM and Akoma FM to highlight the important role fathers play in keeping the family intact and the society going.

TV3 Network and Onua TV are running the “Flex with Daddy” and “Me Papa Nie” campaigns respectively. 3FM has launched “Father’s Biggest Tale Promo” and Kumasi based Akoma FM is behind the “Agya Pa, Aseda Nie” campaign.

Members of the general public interested in participating in TV3’s “Flex with Daddy” and Onua TV’s “Me Papa Nie” are to take a picture with their fathers or any

father figure in their lives, add the most captivating caption plus the hashtag #flexwithdaddy or #mepapanie and send to the TV3 social media pages (@TV3Ghana) on Facebook, Instagram and Twitter or Onua TV social media pages (@ OnuaTV) on Facebook, Instagram and Twitter.

To participate in 3FM’s “My Father’s Exaggerated Tale”, you can share an amazing story your father told you on the 3FM Facebook page and Twitter handle. For Akoma FM’s “Agya Pa, Aseda Nie”, send through a special message to your father on Akoma 87.9 FM on Facebook or call in to the special Father’s Day programme on Sunday 21st June from 12:30pm to 3pm to win amazing prizes.

Around the world, fathers mean the world to their families and there is absolutely nothing else on the surface of the earth which can be compared to the care and deep love fathers have for their children and wives. Don’t miss the opportunity being provided by Media General to celebrate fathers and also win some wonderful prizes.

The Media General Father’s Day campaign is in partnership with Kasapreko Company Limited, Sheelz Place and Holy Trinity and Health Farm.

Beatrice Agyemang Abbey - Group CEO, Media General

Chartered Institute of Bankers goes virtual with programmes

Central University reduces fees for 2020/21 academic year

Chartered Institute of Bankers, Ghana, which promotes the study of banking and regulates the banking profession’s practice in the country, has unveiled a suite of virtual programmes to continue training banking professionals in response to the coronavirus pandemic.

The virtual programmes take the form of online classes for all student members who are currently numbering over 10,000; commercial training programmes tailored to meet specific needs in the industry; open lectures for Continuing Professional Development; and remote, virtual, and interactive sessions.

The institute’s Business Development and Corporate Affairs Manager, Mr. Patrick Baah Abankwa, explained that the institute uses media channels such as Microsoft Teams, Zoom Cloud, Google Meet and Skype to conduct these virtual training and learning.

The Institute’s President, Rev. Mrs. Patricia Sappor, noted that over the years, CIB has offered top-notch training programmes on ethics and operational efficiencies needed for the smooth running of the finance and banking space while training professionals who are making a

Central University has reduced its fees for the 2020-2021 academic year for as much as 55% in some programmes in order to provide support to parents and students post COVID-19.

The University Council has approved varying percentage reduction of fees for programmes in its eight schools. International freshmen and women will be enjoying comprehensive fee reductions ranging between 6% to 55%.

Ghanaian students will also enjoy fee reduction for most programmes and general freezing of last academic year’s fees for the rest of the programmes.

Central University has over 7000 students studying various

Rev. Mrs. Patricia Sappor, President, Chartered Institute of Bankers, Ghana

significant impact on the banking industry.

“COVID-19 has restricted faceto-face interactions, which used to be the bedrock of training and human capital development. The Chartered Institute of Bankers, Ghana, however, believe distance is not a barrier to learning. To this effect, we have developed a state-ofthe-art e-learning studio to provide training and learning opportunities via virtual and remote means,” she said.

She therefore urged industry players to take this opportunity to empower their human capital towards profitability and professionalism.

Graduate and Undergraduate programmes on its campuses at Miotso, Accra, and Kumasi.

New students applying to Central University will have the opportunity to study programmes from the Central Business School, the Faculty of Arts and Social Sciences, the Faculty of Law, the School of Architecture and Design, the School of Medicine and Health Sciences, the School of Engineering and Technology, the School of Pharmacy and the School of Graduate Studies.

Currently the only private university offering Architecture and one of the foremost in legal and pharmacy education in Ghana, Central University provides a serene and conducive environment for teaching, learning and research and invites applications from qualified students for the 2020-2021 academic year

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WEDNESDAY JUNE 17, 2020

WEDNESDAY JUNE 17, 2020

Feature

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Webcam Blackmail in COVID-19 times

BY RICHIESON GYENI-BOATENG, CAMS

I

n this Covid-19 times, everything is going digital and online businesses are thriving very well. Most business owners who traditionally will not do their business online are now online attracting their customers and/or using digital platforms to receive payment. One of such business is the oldest profession in the world, PROSTITUTION, which is even illegal in most countries in the world.

Now these prostitutes and their pimps have gone hi-tech in their trade by advertising their services on dating and social media sites to perform these services in front of their webcam to entice their victim to participate in the act to get satisfaction.

The question is, who is behind and controlling these acts? This article is aimed at throwing more light on how sextortion works and how to win the fight against these criminals when you find yourself as a victim.

Sextortion is a type of revenge porn that employs non-physical forms of coercion to extort sexual favors from the victim. Simply put, sextortion is blackmail. It’s when someone threatens to send a sexual image or video of you to other people if you don’t pay them or provide more sexual content. Research has it that

sextortion surged in some parts of the world when government imposed lockdown restrictions on its citizenry with countries like UK, USA recording their highest numbers ever. This is because people resorted to the internet to kill their boredom. Criminals also took advantage of the situation to blackmail people, using fake social media accounts and/ or forcing people to seduce their victims.

Sextortion is thought to be rising in popularity among criminals due to the attractive nature of the crime.

Another form of sextortion is when the criminal threatens the victim to submit more explicit pictures, videos and/ or vital information otherwise he or she will release private and sensitive information, pictures and/ or videos of the victim to his friends and family.

Criminals are using sextortion to even sway corporate employees into handing over employee credentials and other information because of the ease with which these people (victims) fall prey to sextortion.

One way sextortion happens, is when the criminal via his or her accomplice befriend their victims online (social media platforms, dating site, adult website) using a fake identity and persuade their victims to perform sexual acts in front of their webcam.

These webcam interactions are recorded by these criminals with the intention to extort money from their victims by threatening them

of sharing the images and/or videos to the public (including family and friend). These things are mostly done using attractive young ladies and gentlemen who are coerced into these actions using financial incentives and/or threats.

Some of the criminals even advertise their numbers on these sites for people to contact them (via platforms/ channels they have control over) for online adult services. The criminal commonly uses a pre-recorded bait video to entice the victim to make an advance payment for more exciting services and vanish into thin air when the money is received. Since the source of funds cannot be explained, the criminal will find and use avenues to clean these monies.

In an effort to stop yourself from becoming a victim to sextortion, one need to be very careful about who you befriend and even consider sharing anything intimate with them. When you find yourself in this situation, try to follow these simple rules or guideline: Never panic if someone threatens to share your nude pictures and/ or videos if you fail to pay him or her the money being requested for. Report the issue to the police immediately. Try as much as possible not to communicate further with the criminal. Gather all the evidences you can lay your hands on by taking screen shots of the earlier

communications. Suspend your social media accounts (don’t delete the accounts). If possible, used the online reporting process available on the social media site to report the issue to them to have the video and/or picture blocked and set up an alert in case the video and/or picture resurfaces. Blackmailer will always come for more money once you pay the initial payment. So try as much as possible not to pay any money being requested for by the criminal.

At times, even when the demands have been met, the criminals still go on to post or share the videos and/ or picture We are all fallible. We are all susceptible and potentially vulnerable to something like sextortion and many people use webcams for flirting and cybersex - but sometimes people you meet online aren’t who they say they are, so we should be smart and alert.

Would you mind doing me a favor?

Share this article with someone so that the awareness of sextortion to prevent people from being victims.

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

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WEDNESDAY JUNE 17, 2020

WEDNESDAY JUNE 17, 2020

Feature

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The EmployeePreneur Journey — Esi Akosua Aboagyes’s story

BY GATHY FAIDOO

G

rowing up Esi Akosua Aboagye had very colossal career ambitions and have always known that one day she will own a couple of businesses. What she didn’t know was how that will happen and how she was going to juggle her ambitious career goals with her dream of being a business owner.

That notwithstanding she started her journey the ‘normal’ way as most graduates in Ghana. She dived straight into the corporate world to do her national service with one of the prestigious educational institutions and nine months after she had an offer to join an amazing Marketing communication outfit in Benin, Cotonou…first job and she had to leave her comfort zone.

She learnt a great deal in this field, little did she know it will form the foundation of her first online business in future.

Instantly, Esi Akosua had grown to become a young African corporate woman managing a team of five and rising in her career. During this period Esi built her tenacity and essential business skills that will form the foundation of the journey ahead.

It is said “Life begins at the end of

your comfort zone” – Esi Akosua lived up to this truth, by leaving the comfort of her home country, she reached outside the box and explored a whole new environment and lifestyle. Be willing to step outside your comfort zone once in a while, take risk in life that seem worth taking. It is your set time to grow and learn. Benin was all that for Esi Akosua. She grew and learnt new skills which ordinarily she wouldn’t have learnt if she had stayed back home in Ghana.

Whilst at Benin, Esi Akosua noticed a trend which was uncommon in her birth country Ghana. The indulgence of the African print fabric in the everyday life of the Beninese. They wore African prints to work, church, parties, funerals… just name it! She fell in love with the trend and this birthed her 1st business in the fashion industry.

Learn to recognize the opportunities in your environment and location, business ideas can crop up from anywhere and at any time just be conscious, open minded and ready to learn.

One of the many dreams of Esi Akosua was just about becoming a reality….she was going to become a Business Owner. She started planning for her business and used her free time to learn the basics of tailoring. Three months down the

line her first production was ready and sent back home to be sold.

In just three months Esi had launched her side business. She was juggling a career and a business at the same time. Just like yesterday, Esi is now an EmployeePreneur.

At this point Esi wondered how she was going to combine her business with her successful career.

She loved her job so much and was not ready to jump ship to full time entrepreneurship.

Just as she was putting her strategy together on how to juggle both worlds as an EmployeePreneur she met the love of her life Kwabena.

Kwabena was an astute business man, as luck may have it, he was a fashion entrepreneur. Days went by and their relationship grew stronger and stronger. They decided to spend the rest of their lives together.

All too soon this chapter of Esi Akosua’s life came to an end, she returned to her mother land and joined another corporate organization and also started her family life.

The story unfolds….read next issue for continuation.

Gathy is an HR (Learning & Development) professional by day and after 5 she works as the creative lead of Pauligath a Ghanaian fashion retail company providing uniquely de-

signed clothing for women & their tiny fashionistas. Being a teacher at heart and with a passion for learning and women empowerment she founded LWG (LearnWithGathy) an outfit she launched to provide strategies and tools that help women employees launch, grow and create profitable side businesses. These are proven strategies she has personally used to grow her clothing brand Pauligath. To create a support community to make running a side business and managing a career more rewarding, she set up the EmployeePreneursAfrica network to bring together business minded professionals who juggle a full time job and build a side business to provide free & cost effective training and essential business & leadership skills and to create a host of opportunities for personal, career and business growth.

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WEDNESDAY JUNE 17, 2020

Education

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Pro-Vice-Chancellor inspects preparedness to receive final year students Prof. Nana Aba Appiah Amfo, ProVice-Chancellor (Academic and Student Affairs) has led a team of officials to inspect facilities on campus to ascertain the state of preparedness to receive final year students back to campus after the closure of the University due to the COVID-19 pandemic.

In compliance with the presidential directive for final year students to return to campus to complete academic work for the semester, Management has implemented a number of measures to ensure that such students return to a safe and conducive environment.

The team visited student residences, both universitymanaged halls and private hostels as well as academic facilities on campus.

At Evandy Hostel, one of the private hostels on campus, a total of 20 students had reported at the time of the visit. Management of the hostel indicated that each room was assigned to a student in order to minimize potential spread of infection amidst other measures

such as checking of temperature and placing washing accessories at the entrance of the hostel.

The team observed that similar measures have been put in place at Akuafo Hall, one of the universitymanaged halls. Halls assistants were tasked to ensure that students had completed online forms designed to solicit basic information as well as ensure compliance with the wearing of face masks and hand washing protocols and other precautionary measures. Management of the Hall has also instituted a system to disinfect student room keys left at the Porter’s lodge.

Receiving the team at the Balme Library, Prof. Perpetua Dadzie, Ag. Librarian outlined protocols put in place to ensure that the library environment is safe. It was observed that sitting arrangements at the Research Commons and reading rooms had been adjusted to ensure adherence to social distancing protocols.

At the University of Ghana Computing System (UGCS), the team inspected the computer labs

and other arrangements made to enhance students’ access to electronic resources. Similar to arrangements at the Balme Library, social distancing protocols were also in place at the computer labs and other sitting areas. Provision has also been made to disinfect computers and other accessories after each use before assigning to another person.

Prior to the return of the students, the University with assistance from government, in partnership with Zoomlion Company Limited undertook a disinfection exercise

on the campuses of the University.

Prof. Nana Aba Appiah Amfo who expressed satisfaction with measures being put in place emphasized the need for continuous compliance to ensure that the University environment is safe.

The Pro-Vice-Chancellor was accompanied by Mrs. Mercy HaizelAshia, Registrar, Dr. Charles B. Wiafe-Akenten, Master of Legon Hall and Chairman of the Committee of Heads of Halls and Mrs. Joanna Omaboe, Assistant Registrar, Public Affairs Directorate.

Post-COVID recovery: Science, technology and innovation key, says ECA chief Science, technology and innovation will be at the heart of Africa’s recovery from the devastating coronavirus (COVID-19) pandemic and the continent’s ability to create sustainable jobs, Executive Secretary of the Economic Commission for Africa (ECA), Vera Songwe, has said.

In remarks at the beginning of a five-day virtual COVID-19 Africa Innovation and Investment Forum 2020, Ms. Songwe said Africa needs innovations to drive homegrown solutions out of the COVID-19 pandemic and the economic recession it has triggered the world over.

“We need investments in innovation, science and technology to understand how we can protect our citizens and also as a way of growing out of this crisis. STI will be at the heart of Africa’s recovery and its ability to create sustainable jobs; that is why for a very long time ECA has been talking of the importance also of intellectual property rights to protect the innovations of Africa’s youth,” she said.

Ms. Songwe said the current costs of IP registrations on the continent were prohibitive and not rewarding innovation.

“This is not a strategy for growth,” she said, adding: “As we talk of science, technology and innovation, we also need to make sure that our policymakers ensure that our technological platforms are robust.”

“This virus has highlighted the

importance of science, technology and innovation and the need for Africa to build a much stronger, much more collaborative scientific technology industrial base.” She added that partnerships were needed across the continent to “ensure that as we build on the African Continental Free Trade Area, we develop, discover and innovate collaboratively”.

Ms. Songwe said Africa also needs to come together to see how it can be part of the big drive to find a vaccine for COVID-19 and other diseases affecting the continent.

“If Africa is to succeed in getting out of this crisis in a sustainable way, technology is going to have to be the cornerstone of that success,” she said, adding the continent needs to innovate collectively and support its youth to innovate by creating the necessary infrastructure to create quality jobs, spur economic growth and promote health.

Ms. Songwe said it was unacceptable that only 25 percent of Africa’s population has access to quality, affordable and reliable broadband.

“We surely can do more to improve Internet penetration on the continent, especially as a lot of jobs and wealth are going to come out of innovation.”

Ethiopia’s Education Minister, Mr. Getahun Mekuria; the African Union Commissioner for Human Resources, Science and Technology, Ms. Sarah Anyang Agbor; and

the United Nations Educational, Scientific and Cultural Organisation’s Hubert Gijzen, also spoke in the opening session emphasising the importance of STI to the African continent at this particular time.

“Africa has a lot of assets, be it its vast natural resources or its youth, but we will continue to lag exponentially behind if we do not fuel our own innovations,” Mr. Mekuria said.

Ms. Agbor said lack of capacity was a major issue the continent needs to address.

“We need to boost strategic investments in STI if we are to deliver Africa’s aspirations as enunciated in Agenda 2063,” she said, adding the private sector had a key role to play in helping the continent translate research into innovation.

For his part, Mr. Gijzen, Regional

Director and Representative for the UNESCO Regional Office for Southern Africa, said: “We are so focused on combating the coronavirus at the moment, but we should not forget the sustainable development goals. The SDGs should remain our compass even as we fight the pandemic.”

He said the crisis has encouraged open science as the search for a cure and a vaccine continues. He added that linking investment to innovation was critical.

Mr. Daan du Toit, Deputy-Director General, International Cooperation and Resources in the Department of Science and Innovation in South Africa, said Africa should do all it can to use STI to bolster growth in the aftermath of COVID-19, adding it was very much about involving the young people.

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Tourism

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Where can I travel this summer? Countries open for tourism The coronavirus has forced several countries to close borders and airline companies to ground flights but what countries can tourists travel to this summer?

The coronavirus continues to spread in some areas of the world and is fluctuating in others from week to week. As lockdown restrictions are eased in many cities and countries, borders are being opened up again too. Many countries rely heavily on tourism during the summer with Spain, for example, relying on the tourism industry for €159 billion a year and 2.65 million jobs. Therefore, it is seen as pertinent to the health of the economy to get tourists back into the country.

According to the New York Times, “Approximately 100 million travel sector jobs have been eliminated or will be.” They say passenger travel is down 95% compared to last year and loss of revenue are expected to be more than $300 billion. In the middle of the first wave of coronavirus, it was believed all summer holidays would be cancelled, but things have changed rapidly since then. It is now seen as ‘under control’ in some countries.

The European Commission wants its members to come together to provide a list of non-EU countries where Europeans can travel to from 1 July. With infection rates and cases changing by the week, this list will be reviewed regularly based on how the country is responding to the virus.

There are fears that with countries in the EU containing the virus for

now, opening back up the borders could cause a second wave and so they will handle the situation with extreme care. One of the criteria for making it on to the list of non-EU countries will be that the country has an epidemiological situation that is similar to the E.U. average and where sufficient capabilities to deal with the virus are in place.

Ylva Johansson, European Home Affairs Commissioner explains: “As travelers entering the E.U. can move freely from one country to another, it is crucial that member states coordinate their decisions on lifting travel restrictions.”

With people confined to their homes and neighborhoods for the last number of months, many are now planning holidays.

Which countries are open amid the coronavirus pandemic?

Spain will open its borders on 1 July. The virus is considered to be under control and the Balearic Islands have been chosen as a place to launch a ‘pilot project’ to make sure the protocols for foreigners visiting are in place and functional. According to El País, 33,500 people entered Spain in May but that number is set to explode once the borders open back up.

A detailed list of every European country travel restrictions can be found here. Politico explain restrictions, planned re-opening dates, quarantine rules and rules for non-European travelers.

The Caribbean Antigua, the U.S. Virgin Islands and St. Lucia are open already. Meanwhile, Jamaica opens

up again on 15 June and the Bahamas and Bermuda will open on 1 July.

Aruba will open up again on 10 July.

Asia Japan, Vietnam and Singapore have not yet announced when they will re-open their borders but Bali is reportedly considering October as a date to lift border shutdowns.

North America The US have banned certain countries from landing passenger flights including China, Iran, the European Schengen Area, United Kingdom (including Ireland) and Brazil. Arriving from other countries will see you spend 14 days in quarantine. The same is true for Canada and the US - Canda border remains closed to non-essential travel until 21 June.

Mexico is opening state by state, and Quintana Roo (Cancun, Playa del Carmen, Cozumel and Tulum) opened this week. It has, however, been named as one of the seven international coronavirus hotspots.

Mexico has seen almost 150,000 cases and over 17,000 deaths so far due to the virus.

South America Bolivia, Brazil, Chile and Peru remain closed and Colombia will not allow passenger flights to land until at least the end of August. South America is currently seeing rising cases and these dates might change depending on the number of family and weekly average cases. Argentina will not allow passenger flights to land until the end of September. (source: en.as.com)

Thailand Plans US$722 million subsidy to spur domestic travel Thailand will defray costs for domestic holidaymakers, with the cabinet approving measures worth 22.4 billion baht ($722 million) on Tuesday, to help the tourism industry after visitors dried up because of the coronavirus crisis.

Tourism makes up more than 10% of an economy that the state planning agency estimates will shrink 5% to 6% this year in its worst performance since the Asian financial crisis of 1997-98.

“The domestic tourism stimulus will help support the economy in the third and fourth quarters as it will increase spending,” Finance Minister Uttama Savanayana told reporters.

On offer to Thai domestic tourists over the next four months are free visits to health officials, and subsidies for hotel rooms, meals and transport, a government spokeswoman said.

The scheme, to be rolled out from July to October, will support domestic trips by 1.2 million medical personnel and health volunteers, for a value of 2.4 billion baht, the spokeswoman, Traisulee Traisoranakul, told a news briefing.

Domestic travellers also stand to receive a subsidy that amounts to

20 billion baht, including a 40% discount on 5 million hotel room nights, up to a value of 3,000 baht a night, as well as up to 3,000 baht on meals and other amenities.

The government will discount air or bus tickets by 40%, up to a limit of 1,000 baht, Traisulee added.

Some details remain to be worked out, she said.

Thailand, which has a tally of 3,135 infections and 58 deaths since January, lifted a nationwide curfew on Monday and relaxed curbs further, as coronavirus infections slowed sharply.

Foreign arrivals could tumble 65% in the Southeast Asian nation this year because of the pandemic, the Tourism Authority of Thailand has said.

Thailand had no foreign visitors in April, when it imposed a ban on international passenger flights until the end of June. Last year, foreign tourists contributed 11.4% of GDP while domestic tourism made up 6%.

Thailand aims to attract foreign visitors by creating so-called travel bubbles with nations that have also managed to rein in the virus, but has set no deadline. (www.nytimes. com)

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Business Outlook & opportunities amidst Covid-19 pandemic

BY CDC CONSULT

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he last quarter of 2019 was characterized by the outbreak of the coronavirus disease 2019 (COVID-19) across the globe and in Ghana, like other countries, the outbreak of the pandemic has caused a lot of damage to businesses and individuals. This article presents part one (1) of a series that aims at exploring the business outlook amidst the pandemic and to provide some strategies that businesses can adopt to stay afloat during and post the pandemic.

The devastating effects of the coronavirus disease are well known and documented. In order to combat the spread of the virus, governments across the world have been confronted with the need to take some difficult decisions including closure of borders, curfews, ban on exports/imports, cancellation of large gatherings amongst others. Even though these decisions have been targeted at minimizing the spread of the virus, the economic repercussions on their citizens and countries as a whole cannot be overlooked and Ghana is no exception.

The first two cases of the virus in Ghana were confirmed on 12 March 2020 and following this, the Ministry of Finance, amongst other national and international authorities have sought to analyze the economic impact of the outbreak and consequent measures taken by the Government to curtail the spread.

In an article written by the Finance Minister, Mr. Ken OforiAttah on the 17th of April, 2020,

he stated “…economic activity has been massively disrupted; hotels are closing, industry is tottering, airlines are grounded, and our toast-of-the-region airport lies asleep. The Bank of Ghana cut rates by 150 basis points and reduced the reserve requirements by 2 per cent, enabling banks to increase their lending to the private sector by some $500m — a good effort, but an underwhelming response to what should be done”.

At the national level, reports from the Ministry of Finance show that all the key macroeconomic indicators are pointing to difficult years ahead of us. Our Gross Domestic Product (GDP), Foreign Direct Investments (FDIs), External Debt Stock, Primary Balance, National Reserves, Budget etc. are all expected to deteriorate for at least the rest of the year.

Equally, at the micro level, many businesses are confronted with a number of challenges including serious supply chain disruptions; increasing redundancies, declining sales causing liquidity problems; operational constraints, increasing bad debts, compliance challenges for some regulated businesses; business continuity challenges among others. The aforementioned challenges facing businesses in the country and indeed the global business environment cuts across different sectors of the Ghanaian economy including the financial sector, energy, education, hospitality, aviation, agriculture, health and marine. What makes the current situation even more onerous is the fact that the impact of the COVID-19 is yet to be fully understood and indeed assessed.

In spite of the above challenges, the situation is not all doomed. In other

words, there are some positives businesses can take away as they strive to adjust to what in now being referred to as ‘the new normal’.

Business owners and managers cannot afford to throw in the towel and fold their arms in despair.

Presented are some suggested actions that business owners and managers can take to reorganize themselves and respond to the immediate challenges confronting them.

• Expedite action on your receivables- It is highly likely your customers are equally facing cashflow challenges.

Waiting on them to make payments will therefore not be a good idea. Collection efforts must therefore be intensified.

Consider invoice discounting or factoring on customers you are willing and able to lose.

• Extend your payables wiselyFor reasons of continuity, managing relationships with suppliers is critical. Negotiate and persuade delayed payment options to ensure both parties are comfortable with the new arrangement.

A managed relationship helps secure future supplies as supply chain bottlenecks will heighten in the coming days and months.

• Enhance due diligence on your cashflows- This is the time to scrutinize every payment or receipt. Ensure customers are paying the right invoiced amounts and ensure you do not overpay suppliers. Pay attention to discounts and other flexible payment options and take full advantage of them.

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Claim your business insuranceSome trade terms and bank products/charges have embedded insurance upon business interruptions. You may also have signed on to particular insurance policies that the risks have crystallized.

Review your insurance policies to understand what claims are available to you and put in the claims immediately. Seek professional advice if need be!

Improve your cost control measuresPerhaps there cannot be a better time to adopt prudent cost control measures than now. Segregate your costs into fixed and variable components. Convert as many fixed costs as possible to variable ones such as selling vehicles, warehouses etc. and leasing them back. Reduce the activities that drive variable costs and hold individuals accountable.

Find alternative revenue streams- This may come from new markets, refined products etc. For businesses involved in exports, finding local markets may be necessary. For fashion houses, nose masks may be the new product. Renting part of your warehouse, office space etc. (if you own them) could be considered.

As the adage goes, every situation is a learning situation and there is an opportunity in every misfortune if you can maintain your composure. Business owners, entrepreneurs, managers and whoever is involved in

(…CONTINUED ON PAGE 23 )

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Mining

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Chamber of Mines seeks “creative ways” to support local players financially

BY EUGENE DAVIS

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ocal participants in the mining sector will soon benefit from a funding support aimed at improving their competitiveness, the CEO of Ghana Chamber of Mines, Sulemanu Koney has said.

According to the CEO’s message in the Chamber’s 2019 Annual Report, he indicated that the annual Local Content engagement was successfully held last year.

“The discussions were both positive and stimulating with a defining conclusion to explore creative ways to provide funds to support local participants in the mining supply chain as a means of improving their competitiveness.

“With the local content portal on the Chamber’s website, we have created useful resources to guide interested investors to identify opportunities in the mining value chain that can stimulate economic growth” he noted.

Furthermore, he added that the Secretariat held series of interactions with stakeholders on ways by which local refineries can refine ore for the industry in line with acceptable international certifications.

“Gold Coast refinery continues to be a part of the stakeholders and it would be a shot in the arm of the mining industry and Ghana as a whole if a local refiner y is able to acquire the requisite certification”

he said.

Mining companies, under the year in review, undertook various social investments in deprived communities across the country.

Such projects include the funding of a mechanized water system for the Ullo Senior High School in the Jirapa District of the Upper West Region; the provision of medical equipment to the Bimbilla Government Hospital; support for the National House Chiefs; to the provision of electricity for the people of Kwame Aninkrom in the Sefwi Wiawso Municipality through the patronage of the Nexans Foundation, the chamber augmented the social support services rendered to host communities by member companies.

“With the establishment of the Minerals Development Fund Secretariat as well as the inauguration of its board, we look forward to an expansive spate of development in mining communities to support livelihoods and the local economies,” he said.

He added that as the world confronts the Covid-19 pandemic, the chamber will endeavour to leverage key partnerships within and without the industry in order to surmount the adverse effects of the scourge in the country and industry.

The outlook of price in 2020 remains bullish as the coronavirus induced global health pandemic is expected to provide tailwinds for

Sulemanu Koney says local players in the mining sector deserves financial support to stay competitive

year-on-year growth in the yellow metal’s price.

Data from the Ghana Revenue Authority (GRA) showed that the mining sector’s total fiscal contribution, at 7.7 percent of domestic revenue in 2019, was the second highest after the financial and insurance sectors.

This notwithstanding, the share of the mining and quarrying sector in total direct domestic receipts mobilized by the GRA improved by

70 percent from GH¢2.36 bn in 2018 to GH¢ 4.02 bn in 2019. This growth was occasioned by the simultaneous increase in production and price of some minerals, particularly, gold.

Likewise, the expiration of the Stability Agreements between the Government of Ghana and some mining companies further resulted in changes that boosted revenue for the State, the Chamber’s report revealed.

Zimbabwe gold miner RioZim halts production over payment delays Zimbabwe’s biggest gold miner RioZim Ltd said on Tuesday it had stopped production due to delays in payments for deliveries to the country’s sole buyer of bullion, which left the company unable to meet its operational expenditures.

Gold is Zimbabwe’s single largest foreign currency earner, and Fidelity Printers and Refiners, an arm of the central bank, has a monopoly on buying and refining all the country’s output.

However, a shortage of foreign currency in Zimbabwe has led to payment problems in the mining sector.

RioZim said it was owed $2.46 million and 65.48 million Zimbabwe dollars ($2.6 million) by Fidelity for gold deliveries.

That made it difficult to pay for electricity, fuel and a portion of salaries, which are all denominated in U.S. dollars, said RioZim, which owns three gold mines and a diamond mine.

“The company has therefore been

forced to stop production of bullion due to its inability to buy essential consumables and spaces and is actively placing all its gold mines on care and maintenance until a viable solution is found,” RioZim said.

Fidelity and the central bank were not immediately available to comment.

The situation is similar to a case in 2018 during a credit crunch when RioZim accused Fidelity of making

late payments, which Fidelity and the central bank both denied doing.

At that time RioZim temporarily halted production and sued Fidelity and the central bank for $92 million over late payments. The arrears were later cleared and production resumed but the court case is still ongoing.

Large gold producers are paid 70% of their earnings in dollars and the balance in local currency at a

fixed exchange rate that miners say disadvantages them.

That is because the Zimbabwe dollar is pegged at 25 to the U.S. dollar but trades at up to 90 per U.S. dollar on the black market. Most prices are calculated using the black market exchange rate.

The Chamber of Mines and tobacco farmers have urged the central bank to scrap the fixed exchange rate and allow the local unit to freely float.

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Combating COVID-19: How should banking supervisors respond?

BY TOBIAS ADRIAN AND CEYLA PAZARBASIOGLU The massive macro-financial shock caused by the pandemic continues to ravage the global economy and has put both banks and borrowers under severe strain. Supervisors find themselves confronted with unprecedented challenges which call for decisive action to ensure that banking systems support the real economy while preserving financial stability. This blog introduces nine joint IMFWorld Bank recommendations to help supervisors navigate these uncharted waters and calls for vigilance regarding policy measures taken that are not consistent with international standards. This is critical to prevent the health and economic crisis morphing into a financial crisis.

The banking sector plays a critical role in mitigating the unprecedented macroeconomic and financial shock caused by the pandemic through supporting affected borrowers and maintaining the flow of credit to the real sector while preserving financial stability. The global banking system is on a much stronger footing now than during the 2008 financial crisis due to the implementation of the G20 financial regulatory reforms.

Still, as acute liquidity challenges give way to structural solvency problems, defaults on debt will rise and the pressure on the banking system will grow. Further adverse shocks to economic and financial conditions could realize. The lingering uncertainties about the ultimate length and impact of the shocks poses profound challenges to banking supervisors.

The IMF and the World Bank share a long-standing and key strategic partnership to help our member countries preserve financial sector stability and promote financial development. Our joint efforts are more important now than ever.

Banking supervision and regulation is an area in which both organizations have extensive experience. Drawing from insights of IMF-World Bank operations across our universal membership and our joint Financial Sector Assessment Program we have published a joint IMF-World Bank staff position note that sets out nine recommendations which can serve as a guide for banking supervisors to help navigate these uncharted waters.

What have policymakers done?

To provide immediate relief to affected borrowers and maintain adequate liquidity in the financial system, many national authorities have deployed support measures such as debt repayment postponement, stimulus packages, and credit guarantees.

Supervisors have been an integral

part of this policy response. Building on the guidance of standardsetting bodies, many supervisory authorities have implemented a wide range of interventions in the financial sector. The measures target utilization of available bank capital and liquidity buffers, provide clarity on regulatory treatment, promote balance-sheet transparency, and maintain operational and business continuity of banks as well as payment systems.

What should supervisors bear in mind?

We provide nine recommendations that recognize the continued effort to support the immediate needs of the real economy, while ensuring financial stability. They encourage national authorities to employ the embedded flexibility of regulatory, supervisory, and accounting frameworks, while upholding internationally-agreed minimum regulatory standards and supervisory principles. Abandoning such principles could sow the seeds of future risks that potentially undermines the medium-term soundness and health of the banking system.

Particular vigilance is necessary regarding measures that are not consistent with internationallyagreed frameworks. Indeed, some developing countries have fewer policy options at their disposal due to limited policy buffers, weaker implementation capacity,

and less-sophisticated regulatory frameworks. This could explain their higher reliance on policy responses that are not in line with our recommendations. These risk jeopardizing some of the hard-won gains in regulation and supervision in developing countries that underpin financial stability.

The role of the bank supervisor has never been so essential.

How do the recommendations help keep the financial system in good health?

If the blood pressure of a person increases, adjusting the medicallyacceptable blood pressure range upwards may prevent a red alert on the hospital’s monitor, but it does not mean that the patient is not at risk. Similarly, changing the way in which the “vital signs” of the banking sector (capital, liquidity, asset quality) are defined and measured will not help to keep the banking system healthy.

For example, some jurisdictions have frozen the asset classification status and provisioning requirements for loans that were performing before the start of the pandemic or changed the definition of non-performing loans by extending the number of pastdue days. This approach risks missing vital signs if part of the loan portfolio is structurally impacted and performance weakens. While temporary measures may help

to buy time until a clearer view on the impact of the pandemic is possible, recommendation 4 calls for supervisory action to ensure that banks continue to monitor their asset quality using well-established standards and build adequate provisions over time. This approach ensures that the banks’ vital signs are properly measured, which facilitates management actions and prompts early supervisory actions if and when warranted. Providing clear guidance on asset classification and provisioning, ensuring that measures are well designed, time-bound and targeted are also essential to lay the foundation for a sustainable recovery.

By encouraging the use of the flexibility in the framework, while upholding minimum standards, the recommendations seek to ensure that healthy vital signs of the banking system are transparently maintained and supervised. This will help to minimize the risks of a damaging financial crisis that would compound the major economic costs of the pandemic.

The IMF and the World Bank have taken a unified position to assist and support our member countries.

These joint recommendations aid the development, monitoring, and strengthening of policies to sustain financial health during this pandemic and, equally important, for the road to recovery. (blogs.imf. org)

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Firm priorities for fragile states BY: DAVID CAMERON, ELLEN JOHNSON SIRLEAF, & DONALD P. KABERUKA

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he rich world can no longer reassure itself that poor countries will avoid the worst of the COVID-19 crisis by virtue of their isolation.

The pandemic is now hitting these countries especially hard, underscoring the urgent need for renewed global action.

No country has been spared the impact of COVID-19. But some – the world’s most “fragile states” – face a particularly difficult set of challenges. Before the pandemic arrived, Yemen, Sudan, Haiti, Sierra Leone, Myanmar, Afghanistan, Venezuela, and other struggling countries were already beset by poverty, conflict, corruption, and poor governance. Now, these factors leave them especially ill-equipped to deal with the COVID-19 crisis.

What any country needs to withstand a pandemic is precisely what fragile states lack: a government with the institutional capacity to devise and deliver a comprehensive plan of action, effective police to enforce rules, social programs to deliver money and supplies, and health services to care for the infected.

A lack of state capacity is immediately evident in the domain of public health. Whereas Europe has 4,000 intensive care beds per million people, many parts of Africa have just five per million. Mali has just three ventilators for the entire country.

An effective response also requires trust in government. But, in addition to scarce capacity, governments in most fragile states lack popular legitimacy. In countries recovering from conflict or riven by corruption, many people will be unwilling to follow even a government that proves capable of leading.

A strong private sector is also a necessary component of effective, resilient states. People must be able to work to support their families, and governments must generate tax revenues to help those who cannot.

Yet fragile states typically lack the formal economy through which to meet these needs.

Earlier in the crisis, there were hopes that some fragile states would escape the worst of COVID19’s health impact, owing to their youth and isolation. But, from our perspective as the co-chairs of the new Council on State Fragility, this has not been the case. In recent weeks, Sudan, South Sudan, Somalia, and Yemen have all had infection and mortality rates rivaling those in more developed countries that were hit by the coronavirus first.

Worse, the economic impact of the pandemic will surely fall harder on fragile states, not just as a result of internal lockdowns, but because of what is happening overseas.

Trade with countries like China has declined massively, revenue from remittances has tumbled, commodity prices and oil revenues have plummeted, and deficits are ballooning. Because fragile states rely on imports for much of their food, there is now increasing talk of “hunger” and even “famine.”

We should know by now that poor countries’ problems tend to become the world’s problems, whether in the form of mass migration, organized crime, terrorism, or economic spillovers. Given that half the world’s poor will live in fragile states by 2030, these problems will escalate further.

That is why the Council on State Fragility has made it a top priority to draw attention to the unique challenges these countries face.

Comprising former world leaders, ministers, diplomats, business figures, academics, and heads of development organizations, the council will combine cuttingedge research with detailed policy knowledge to influence the global and national decision-makers who will determine how fragile states fare through this crisis and tackle their broader and deeper challenges.

Decentralization, adaptability, and the savvy use of data will be key. For example, there is ample evidence to suggest that “smart containment” of local outbreaks is often more appropriate than countrywide lockdowns. Such insights could prove critical in fragile states. But we must act fast before the acute phase of the pandemic in the West ends, and the sense of urgency there wanes.

We offer five recommendations.

First, social protection must be made simple and fast. Sometimes, that will mean universal eligibility rather than precise targeting.

Mobile-phone networks should be used to gather evidence on current needs, and to distribute small, regular (albeit time-limited) payments.

Second, more domestic food production should be encouraged.

Sierra Leone, for example, used to grow rice, but it has becoming increasingly dependent on imports over the last decades.

More broadly, Africa has 60% of the world’s unused arable land. Efforts to produce staple crops locally can and must be scaled up quickly and substantially.

Third, whenever a vaccine becomes available, the international community must ensure that fragile states are not priced out of the market by richer countries. When the threat is a contagious pathogen, no country is safe unless all are. We must encourage and accelerate the production of multiple vaccines to ensure rapid, widespread distribution.

Fourth, businesses in fragile states need direct support. As the best development-finance institutions know, small companies in poorer countries are often overlooked, and tend to suffer from the perverse effects of broader targets and rules (because it is easier to hit a target by investing in big projects in big countries). But it is precisely these smaller enterprises that merit greater investment.

Finally, the G20 should do more

to support heavily indebted fragile states that are being forced to choose between paying their foreign creditors and saving their people. Countries receiving bilateral development assistance are scheduled to repay about $40 billion to public and private creditors this year alone.

To forestall that fiscal blow, we call on all G20 members to commit to debt moratoriums, not just until next year, but rather for the duration of the crisis. Moreover, it is essential that all fragile states secure emergency funding to support efforts to curb COVID-19 and mitigate its economic impact – including countries that are not ordinarily eligible for funding from the World Bank or the International Monetary Fund.

COVID-19 will deepen existing wounds in all of the world’s fragile states. But with swift global action, we can mitigate the pandemic’s worst effects. If there is one thing we have learned from this crisis, it is that lives and livelihoods will be saved if we can move faster than the virus.

David Cameron is a former prime minister of the United Kingdom.

Ellen Johnson Sirleaf, a Nobel Peace Prize laureate, is a former president of Liberia.

Donald P. Kaberuka, a former president of the African Development Bank, is Special Envoy of the African Union’s Peace Fund. Copyright: www.project-syndicate.org

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managing any enterprise knows that this is not the most pleasant moment to be in the driving seat of a business. But we are there now and must look for opportunities that we can take advantage of.

Here are few areas that are worth considering for possible opportunities even in the midst of COVID-19.

Develop new products and/ or refine existing ones- As boarder restrictions remain, Ghana will be forced to rely on local manufacturers and suppliers for the manufacture of local PPEs, drugs, healthcare consumables etc.

Opportunities also abound for import substitutions for food items, print works, educational materials among others. Manufacturers in the United States and Europe could greatly shift component manufacturing to Africa as Africa could be deemed as the next destination for contracting out various elements of the component manufacturing.

COVID-19 continues to create uncertainties in farming and processing. Big and small farms worldwide may be crippled before restaurants, hotels and food joints bounce back and this could lead to food security issues. The world may turn its attention to Africa

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as a quick route to recovery.

If the opportunities are wellseized, local industry could immensely benefit.

Identify the emerging markets- regional markets & local markets etc.- As the world continues to struggle with the pandemic, African governments will place emphasis on local and regional trade. The call for operationalization of African Continental Free Trade Area (AfCFTA) amidst the pandemic could greatly facilitate an increased regional trade.

Ghanaian businesses can take advantage of the Ghanaian goodwill to trade with other African countries. Starting with neighboring countries with plans to expand to other African countries could prove a good strategy. Export businesses could also find local markets for their goods and services as local demand increases due to reduced imports.

Partnerships and collaborations- COVID-19 is leaving in its wake, a risky business environment.

Investors will therefore adopt the most risk effective approaches to increasing their investment portfolios.

Subsequent foreign direct investment (FDIs) may come in on joint venture, franchising and debt financing approaches as this manages risk for foreign

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investors and utilizes local expertise. Ghanaian businesses must however demonstrate strength in specific areas such as local expertise, well-run small sized business, existence of appropriate documentation, processes and structures etc.

Process (technological disruptions)- COVID-19 has disrupted business processes and this is likely to continue post the pandemic. There is no better time than now to explore e-commerce and other electronic aided business processes. Businesses should consider building a heavy online or social media presence, using digital channels to market and sell their products and service etc. The time is prime for advocating technologically related services such as use of digital educational platforms, drones for delivery of healthcare consumables, spraying of farms, monitoring of mining fields etc.

Pricing- COVID-19 has facilitated the increase in volumes, prices and margins for some commodities. This presents businesses dealing in such commodities the opportunity to make adequate revenues and cash flows especially for diversified businesses which may be experiencing sharp losses in other business lines.

This opportunity may be shortlived but it may well be the

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solution in the short term.

Government interventionsFinally, take advantage of government stimulus packages. If your business meets the eligibility criteria, apply for the financing and take full advantage of the tax reliefs.

In conclusion, we must view the current situation as a glass ‘half-full’ and not ‘half-empty’ if we are to make any progress. There is light at the end of the tunnel. There is hope for business owners, managers and indeed the country as a whole if we take bold steps to embrace the needed change that is confronting us. As Ghanaians, we must begin to think smart and fast because the world may never be what it used to be and we cannot afford to be left behind.

WATCH OUT FOR THE NEXT EDITION: Key drivers to be considered when taking advantage of the opportunities outlined in this article.

Remember to wash your hand under running water, wear your nose mask when going out and never forget to comply with the social distancing protocol.

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For more information and targeted services in financial management and investment advisory services, training and recruitment, market solutions and organizational development, and research, kindly contact CDC Consult Limited through info@cdcconsult.org.

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