Business24 Newspaper 16th June, 2021

1

WEDNESDAY JUNE 16, 2021

Massive public education needed to boost insurance penetration – Allianz Life CEO

Banks and sustainability in a post COVID-19-environment: Absa’s viewpoint on Green Possibilities

See page 5

See page 13

BUSINESS24.COM.GH

NO. B24 / 209 | NEWS FOR BUSINESS LEADERS

EIU warns oil sector in for rough ride

Ghana woos Rwandan investors

By Eugene Davis ugendavis@gmail.com

G

hana’s fastest-growing industries—such as cocoa derivatives, cashew, banana, shea butter, processed fish, metals, and edible oil—remain untapped and ready for investments, Mr. Banda Abdallah, Manager at the Ghana Export Promotion Authority (GEPA) Market Hub, has said.

By Nii Annerquaye Abbey abbeykwei@gmail.com

T

he Economist Intelligence Unit (EIU), the London-based research firm, says Ghana’s hydrocarbons sector faces a difficult outlook after the exit of US-based energy major ExxonMobil compounded the sector’s recent woes.

ExxonMobil last month announced it was quitting the Deepwater Offshore Cape

Cont’d on page 3

Cont’d on page 2

Total revamp of security needed in financial sector—Prof. Bokpin

By Henry Martinson

E

conomist and professor of finance Godfred Bokpin is calling for a total revamp of security arrangements in the country’s financial sector.

This follows Monday’s robbery attack on a cash-intransit bullion van at Timber Market, a suburb of Accra, resulting in the death of a policeman and an unnamed woman.

Prof. Godfred Bokpin

WEDNESDAY MONDAY MAY JUNE 3, 2021 16, 2021

Cont’d on page 2

Otumfuo commends ADB for promoting agric finance

T

he Asantehene, Otumfuo Osei Tutu II, has commended the board and management of Agricultural Development Bank (ADB) for refocusing the bank on its core mandate of agricultural financing.

According to Otumfuo Osei Tutu II, ADB, which was Cont’d on page 5

Follow us online: facebook.com/business24gh twitter.com/business24gh linkedin.com/pg/business24gh instagram.com/business24gh

Cont’d on page 2

2

Editorial / News

WEDNESDAY JUNE 16, 2021

Editorial

Calls to reform fertiliser subsidy programme apt

T

he Ghana Agricultural and Rural Development Journalists Association (GARDJA) is making an apt call for reforms in the implementation of the fertiliser subsidy programme.

According to the group, alleged corruption, poor management, outright stealing and smuggling have blocked farmers, who are to benefit from the programme, from accessing the commodity.

Buttressing their findings is the recent disclosures by the Planting for Food and Jobs Secretariat that Ghana lost a whopping GH¢120 million from unaccounted for subsidised fertilisers, diversion of coupons and smuggling in the 2017 and 2018 planting seasons alone.

Apart from the wanton show of abuse of the public purse, the phenomenon, if allowed to continue, will obviously be a threat to the sustainability of the fertiliser subsidy scheme and a threat to the nation’s food security as a whole.

Farmers’ productivity remains low and that is obviously a source of worry as increased application of fertilisers remains key if we were to see better productivity on our farm fields.

We side with the group’s call to the Food and Agriculture Minister to set up a committee to review the operations of the Fertiliser Subsidy Programme since it was launched in 2008.

We also share in the view

that putting farmers at the centre of the programme will be a sustainable and long-term solution to the issues confronting its implementation.

Now is the time for government to act in the interest of farmers and food security.

The agricultural sector remains one of the most vibrant sectors of the economy and demonstrated its resilience when the pandemic struck last year.

The least we can do now is to look on as some of these acts of sabotage continue unchecked.

Persons found culpable must be made to pay dearly for these unpatriotic acts carried out ostensibly to line up their pockets.

EIU warns oil sector in for rough ride Continued from cover

Your subscription -- along with the support of businesses that advertise in Business24 -- makes an investment in journalism that is essential to keep the business community in Ghana well-informed. We value your support and loyalty.

Three Points oil exploration block amidst reports of lack of a viable oil find.

The exit comes after Norwegian company Aker Energy postponed the development of its Pecan field offshore Ghana, which is projected to hold about half a billion barrels of oil, following the coronavirus crisis last year.

Contact Email: hello@thebusiness24online.net Newsroom: 030 296 5315 Advertising / Sales: +233 24 212 2742

Dr. Matthew Opoku Prempeh, Energy Minister

The EIU said in its May Ghana country report that these developments have dimmed the outlook for the oil sector, which is likely to affect economic growth.

“The longer-term prospects for the sector are weaker, owing to delays in developing other sites as a result mainly of the fallout from the coronavirus (Covid-19)

pandemic,” the business intelligence firm said.

“The final investment decision for the Pecan offshore oilfield was postponed from 2020 owing to the impact of the pandemic on energy prices, and we now expect it to be pushed back to 2022 or potentially even later, and the field could be developed incrementally in order to reduce costs,” it added.

“Similarly, the government has faced delays over the proposed unification of the existing Sankofa [operated by Eni] and adjoining Afina oilfields (discovered in 2019 by Ghana’s Springfield, but lacking an approved plan of development).”

The firm predicted that these ongoing delays to developing offshore fields will limit the ability of the government to reach its target of doubling output capacity to 400,000 barrels of oil per day, which would constrain Ghana’s GDP growth in the medium term.

Ghana’s economy is projected to grow at 5 percent both this year and in 2022. Growth is expected to inch up marginally in 2023 before falling to 4.9 percent in 2024.

3

WEDNESDAY JUNE 16, 2021

Total revamp of security needed in financial sector—Prof. Bokpin Continued from cover The recent incident comes after a similar attack on a bullion van at Fomena in the Ashanti Region, where the assailants made away

with GH¢500,000.

In an interview with Business24, Prof. Bokpin said financial services sector players need to take practical steps to forestall a recurrence of the

robbery incidents.

“Given the spate of attacks, there is the need to review the whole system as quickly as possible. All over the world criminals follow the money, so we have to put in place safety mechanisms to ensure movement of cash across the regions and

Ghana woos Rwandan investors Continued from cover Speaking at a business breakfast meeting with a visiting Rwandan delegation in Accra, Mr. Abdallah stated that the country’s door is open to potential investors looking to explore the West African market.

He said to increase exports and attract more investments in especially the non-traditional export sectors, the government has developed a National Export Strategy that is being implemented till 2029.

The strategy has 17 “strategic value chains” comprising sugar, industrial starch and others, with a target of earning US$25bn in export revenue by 2029, he added.

Mr. Edward Ashong-Lartey, Director, Investor Services, at the Ghana Investment Promotion Centre (GIPC), addressed the delegation on the centre’s mandate and also outlined the tax incentives available to investors.

He revealed that the GIPC law, Act 865, is undergoing a review to “make it robust and competitive”, adding, “Very soon, we will have an interesting regime to attract more investors”.

The Rwanda High Commissioner to Ghana, Dr. Aisa Kirabo Kacyira, urged both countries to “dream big” to forge stronger partnerships to boost trade and investment opportunities in Africa.

“We want to work together

to create the new Africa as presented by the AfCFTA [African Continental Free Trade Area],” she said.

The 32-member Rwandan delegation, comprising government officials and relevant stakeholders from the private

Dr. Aisa Kirabo Kacyira, Rwandan High Commissioner to Ghana

within cities,” he said.

According to him, if the national security set-up does not provide the needed security, financial institutions would be compelled to invest in their own security, which he feared would add to their operational costs and be passed on to consumers.

Business24 sources say the Ghana Association of Bankers is set to hold an emergency meeting to discuss the issue and other developments relating to the carting of bulk cash in and around the country.

The Inspector General of Police, James Oppong Boanuh, has already directed all banks and financial institutions to provide fortified armoured vehicles for carting of cash by the end of this month.

A document sighted by Business24, dated December 24, 2020, from the central bank directed all Deposit Money Banks (DMBs) and Specialised DepositTaking Institutions (SDIs) to by July 1, 2023, acquire armoured plated vans for their cash operations.

sector, is in the country to explore bilateral opportunities in business, tourism, and economic development.

Their visit is in response to an earlier visit to Rwanda in March this year by a Ghanaian trade and media delegation to promote regional tourism and trade in anticipation of greater collaboration under the AfCFTA.

4

WEDNESDAY JUNE 16, 2021

5

News

WEDNESDAY JUNE 16, 2021

Massive public education needed to boost insurance penetration – Allianz Life CEO

T

he Chief Executive Officer of Allianz Life Insurance Gideon Ataraire has called on insurance companies to embark on a comprehensive public education exercise as part of efforts to improve the low insurance penetration in the country.

The newly passed insurance act has established a public education fund which is intended to be used by the regulator, National Insurance Commission, to sensitise the public on the importance of insurance.

Speaking at the launch of the Allianz Life Insurance Farewell Plus funeral policy, Mr. Ataraire said aside from the move by the regulator, insurance companies themselves have a responsibility to embark on campaigns to educate the public.

“We need to do a lot more on education and we will not leave it to the regulator to do it alone. As individual insurance companies, we also need to come up with our own ways of educating the people on radio, on social media, face-to-

face etc. We are going to leverage all these to play our own part as an insurance company.

So, you can imagine if all the insurance companies decide to play their role in educating the masses coupled with what the regulator is doing,” he said.

Commenting on the Allianz Farewell Plus funeral policy, Mr. Ataraire stated that Allianz Life incorporated the feedback of its clients into this new policy making it a highly functional policy that actually serves the needs of the public.

The Allianz Farewell Plus, he said, has a maximum ceiling of sum assured pegged at GH¢80,000 – increased from GH¢50,000.

According to him, another feature of the policy is that after 36 months of the policy running without any claims paid, the policyholder gets 10% of the total premium contributed on the 3rd year as “No claims cash back”.

The policyholder will continue to enjoy this benefit every year thereafter of no claims till waiver

From left: Michael Mensah, Chief Operations Officer, Allianz Life; Michael Kofi Andoh, Deputy Commissioner, National Insurance Commission; Gideon Ataraire, CEO, Allianz Life; Darlington Munhuwani, CEO Allianz Insurance and Jane Kitome, Chief Retail and Marketing Officer, Allianz Life

of premium kicks in when the policyholder attains 60 years.

He stated that the Allianz Farewell Plus has a number of exciting features that make the policy the best buy for anyone seeking a very flexible and useful funeral policy.

The special guest at the

launch, Michael Andoh, Deputy Commissioner at the National Insurance Commission urged insurance companies to stay true to the policies they sell to their clients in order not to contain the expectations of the public especially when it is time to make claims.

Otumfuo commends ADB for promoting agric finance Continued from cover purposefully established to lend for the growth of the agricultural sector, had for some years redirected its focus to other areas aside its core mandate.

The Asantehene made these remarks during a courtesy call on him by the board and management of the bank at the Manyhia Palace on Friday.

He said though the bank was now focusing on the agricultural sector, the establishment of the National Development Bank (NDB) should help ADB do more for the sector.

According to the Asantehene, he was hopeful the NDB would be able to give ADB funds at lower interest rates for ADB to give to farmers.

“Agriculture remains the backbone of our economy, and the NDB should be able to give loans at lower interest rates to ADB for our farmers to easily access,” he said.

The chairman of the board of directors of ADB, Alex Bernasko, said the bank has since 2017 refocused its strategic direction on its main mandate of agricultural

financing.

He said the bank has been a key partner in all government initiatives in the area of agribusiness.

He added that the current board and management have succeeded in moving the bank from loss-making to profit-making and was optimistic the trajectory

would continue.

“We are working to make sure ADB becomes one of the topmost banks in the country within the next few years,” he said.

6

WEDNESDAY JUNE 16, 2021

7

Feature

WEDNESDAY JUNE 16, 2021

How to demonstrate respect in the workplace

By Mrs. Margaret Titus-Glover

R

espect is a key requirement for a healthy work environment. It promotes teamwork and increases productivity and efficiencies in the workplace. It lets employees know they are valued for their abilities, qualities and achievements, and that their role is important to their company’s success.

Being respected and valued promotes a positive work culture where employees are loyal, fulfilled, and motivated to perform at their best for their company.

Those who are not respectful to others are unprofessional and a threat to the health of their company.

The Meaning of Respect in the Workplace Always treat people the way you want to be treated—with respect. Recognize that, like you, your coworkers, reports, and superiors have rights, opinions, wishes, experience, and competence. They also make mistakes, which are simply lessons to be learned. They have similar concerns and insecurities and share the common goal of wanting to perform their jobs successfully.

Respect in the workplace breeds a healthy work environment. A professional, respectful work culture encourages productivity and growth. Staff work optimally knowing they are valued and respected for their ideas as well as their role within the company.

Respect in the workplace fosters productivity, growth, and success for your organization.

Determining Respect in the Workplace Respect can be heard in a person’s tone of voice, in their nonverbal communication and in

how they address you. It can be observed by how your coworker or supervisor listens to you and asks questions to make sure they understand your point of view.

You judge respect by the way your organization, superiors, and coworkers treat you.

It is apparent in how your organization establishes new rules and policies and introduces them to employees, and how they compensate, recognize, and reward you.

Respect can be determined by how often employees ask your opinion, consult you about any changes that could affect their job prior to implementing them.

Examples of How to Show Respect in the Workplace • Treat people with courtesy, politeness and kindness.

• Encourage coworkers to express opinions and ideas.

• Listen to what others have to say before expressing your viewpoint. Never speak over or interrupt another person. Listen and stop formulating rebuttals and responses in your mind when you need to focus on listening to the other person.

• Use peoples’ ideas to change or improve work. Let employees know that you used their idea or encourage them to implement the ideas themselves.

• Never insult, use namecalling or belittle people or their ideas.

• Do not constantly criticize, judge or demean a worker. A series of seemingly trivial actions added up over time constitutes bullying.

• Be aware of your body language, the tone of voice, and your demeanor and expression in all of your interactions at work.

People hear what you’re really saying in your actions in addition to listening to your words.

• Improve your ability to interact with coworkers

and supervisors based on the awareness you’ve gained dealing with people and your emotional intelligence. This will help you to relate with empathy and better understand people you work.

• Treat employees fairly and equally. Treating people differently can constitute harassment, discrimination, or create a hostile work environment.

• Include all coworkers in meetings, discussions, training, and events. While not every person can participate in every activity, do not marginalize, exclude or leave out any one particular person. Provide an equal opportunity for employees to participate in committees, trainings, or continuous improvement teams.

Solicit volunteers and try to involve everyone.

• Offer praise more frequently and pat people on the back. Encourage praise and recognition among employees, as well as from supervisors and managers.

Importance of Respect in the Workplace • Respect is a requisite for a healthy, professional workplace where employees feel valued performing work that is meaningful to the organization.

A healthy work environment can increase employee retention and boost an organization’s reputation as a great place to work.

• A respectful environment reduces workplace stress, problems and conflicts. An increase in workplace respect will help to improve communication between colleagues, increase teamwork and reduce stress as peace in the workplace soars.

• Respect helps promotes a positive culture which increases employee satisfaction as employees feel happy and motivated while working in such

an environment.

• Respect increases productivity, knowledge and understanding. This is a result of increase in exchange of ideas and innovation which is geared towards employees focusing on the company and not individuals.

About the author Margaret is a certified HR Professional with over 14 years of combined experience in Human Resource Management. A creative thinker, problem solver and decision maker whose experience is in helping start-up businesses develop strong HR policies, procedures and processes.

She is experienced in HR Strategy, Benefits Management, Recruitment and Retention Strategy, Performance Management, Orientation/On boarding Programs, Recognition Programs, HR Compliance, Compensation, Employment Policies, Employee Engagement Initiatives and Professional Development.

Are you a passionate small business owner and looking to expand or improve your HR capabilities and create a successful plan for growth and sustainability?

Then MS Staffing is the right company for you.

Contact MS Staffing on: 0248036563 | info@msstaffinggh. com | www.msstaffinggh.com | Facebook: msstaffinggh | LinkedIn: MS Staffinggh

8

WEDNESDAY JUNE 16, 2021

9

International

WEDNESDAY JUNE 16, 2021

Nigeria urged not to row back on fuel and electricity reforms

F

iscal reforms Nigeria began during 2020 need to be completed to support the economic recovery from Covid-19, the World Bank has said.

Actions taken to create the fiscal space the government needed in order to respond to the crisis meant Nigeria’s economy experienced a smaller contraction (of 1.8%) than projected when the pandemic began (3.2%), according to a report.

One such action was the partial elimination of fuel subsidies, which the World Bank said was “fundamental” in increasing the government’s resources to deal with the pandemic.

But in December 2020, against a backdrop of rising oil prices, the government lowered prices consumers pay for gasoline, and has yet to adjust them up to reflect the new, even higher, price of oil.

The government also adjusted electricity tariffs in November from 56% to 80% of cost.

Federal government support for the electricity sector

Lagos, Nigeria

exceeded Nigeria’s health budget in 2020, but this spending disproportionately benefitted the relatively wealthy, with 80% affecting the richest 40% of the population and only 8% affecting the bottom 40%.

The World Bank expressed concern that tariffs will only

be raised to cover the cost of electricity in 2022, and urged the government to quickly continue with these reforms to ensure the economy bounces back from Covid-19.

“The government’s fiscal reforms were timely, but consistency will be critical to

support a strong recovery beyond 2021,” the report said.

In 2018-19, government revenue was just 8% of GDP, among the lowest in the world, the World Bank said, despite it being a large oil exporter.

Its tax-to-GDP ratio, at 4%, is the lowest in Africa.

And “regressive and opaque” fuel and electricity subsidies reduce fiscal space for development spending even further – especially in 2020 when the fiscal deficit reached 5.4% of GDP. “Reform slippages would hinder the renewed economic expansion and undermine progress towards Nigeria’s development goals,” the report warned.

“Less public spending would widen Nigeria’s already substantial gaps in human and physical capital, worsen public service delivery and damage investor confidence.”

Credit: Publicfinancefocus.org

US economic recovery ‘no longer dependent’ on herd immunity

A

successful vaccination programme means that the US’ economic recovery from Covid-19 will not depend on herd immunity, according to ratings agency Standard and Poor’s.

Although there is a possibility of a spike in Covid-19 infections through the delta variant, the effectiveness of available vaccines means there is not a significant economic risk, S&P

said in a report.

It added that vaccine approvals for children, the reduction of Covid-19 restrictions and the resulting natural immunity, will mean the US is likely to fully recover from the pandemic by the autumn.

The report said: “We believe that economic reopening at this point has largely decoupled from vaccination efforts because those most concerned with Covid-19

have been vaccinated and those unvaccinated are largely less concerned about the virus.

“We no longer believe recovery of the US economy hinges on achieving herd immunity.”

S&P added that children’s approval on vaccines will have a profound effect on the economy, with an increase of people returning to work.

The report said: “We expect this could contribute to a substantial return to the labour force, which may ease some

challenges in the economy including wage pressures and labour shortages.

“But note that increased labour force participation may drag on the unemployment rate.”

Many southern states have vaccination rates well below the national average, which regional resurgence of the virus, but S&P said this is unlikely to impact of the reopening of services.

Although many citizens may be unable to receive a vaccine or have a sufficient immune response, this section of the population appears too small to continue affecting public policy, the report said.

S&P added that although masks and testing will continue or reintroduced in some settings, including schools, hospitals, and the transportation industry, it sees little risk that government mandates will be more severe.

Earlier this month, the Federal Reserve confirmed plans to sell off corporate assets purchased last year, which help keep companies solvent through Covid-19.

Credit: Publicfinancefocus.org

10

WEDNESDAY JUNE 16, 2021

11

Maritime, Trade and Logistics

WEDNESDAY JUNE 16, 2021

Police pledge to ensure safe trade along transit corridors

T

he Ghana Police Command in the Bono and Bono East Regions of Ghana have expressed their commitment to ensure the safety of transit trucks and their drivers along the major transit corridors through the regions.

This commitment was made during a sensitization seminar organised for Senior Police Officers on in the Bono Regions by the Ghana Shippers’ Authority (GSA) in Techiman.

Regional Police Commander of Bono East, DCOP Asumadu Okyere-Darko, speaking at a sensitization workshop emphasized the role of the Police in securing the transit corridor for the haulage of transit cargo.

He called on all Divisional Commanders of the MTTD in the regions to sensitize their officers deployed along the corridor to ensure they facilitate the movement of transit trucks along the corridor.

He noted that the Police Command would not spare any efforts to discipline officers who

engage in unprofessional conduct along the corridor.

Chief Executive Officer of the Ghana Shippers’ Authority, Ms. Benonita Bismarck, in a speech read on her behalf, commended the Police Service, especially the IGP, Mr. James Oppong Boanuh, for his support in the facilitation of the transit trade along Ghana’s transit corridors.

She expressed delight at the level of cooperation and

collaboration between the two organisations and assured the transit trade community of expected improvements along our major transit corridors in overcoming the challenges of delays, harassment and illegitimate payments.

Ms. Bismarck noted that the GSA will continue to collaborate with the relevant authorities to educate truck drivers to comply with road traffic regulations

and safety measures as their contribution to ensure smooth movement of the transit cargo along the corridor.

She emphasized the importance of transit trade to the Ghanaian economy such as the creation of jobs and revenue to key actors in the transit trade value chain.

Kumasi Branch Manager of the Ghana Shippers’ Authority, Mr. Isaac Tersiah Ackwerh, in his welcome address underscored the legal obligation coastal states owed geographically disadvantaged states such as Burkina Faso, Mali and Niger to facilitate their trade through our ports and corridors.

He noted that by international convention, Ghana has an obligation to ensure safe passage of transit cargo along its territories and consequently the need for all key stakeholders in the trade and transport value chain to recognise this and ensure that work is done to improve trade facilitation of transit cargo.

In all over 60 Divisional and District commanders from the Bono and Bono East Regions participated in the one-day workshop.

CMA CGM inks five-year innovation deal with CNES

C

ontainership giant CMA CGM Group has signed a five-year agreement with the French National Centre for Space Studies (CNES) to identify, design and develop innovative solutions for the shipping, logistics and space industries.

As disclosed, the agreement will focus on a range of topics, covering smart ship routing, the maritime energy transition, upgrading of port activities and optimized logistics.

It will also explore maritime energy transition through a “sharing of experience” with hydrogen and practices for producing, storing, distributing, filling and using future green fuels.

What is more, the port operations will be upgraded by employing digital technologies to ease flows and cut the impact on the environment and contribute to the space sector by optimising logistics and developing a reliable and sustainable end-to-end service for the global tracking of goods.

The partners plan to reach these goals by working with start-up firms and subject matter

experts (SMEs), supporting CMA CGM’s research and development (R&D) team, and investing in the two organizations’ business development units, ZEBOX, CMA CGM Venture, and Connect by CNES. The focus areas were defined through CNES’ Connect, and the analysis has concentrated on seeking ways of exploiting space data and services to enhance mobility management in the

maritime sector.

CMA CGM’s Chairman and CEO Rodolphe Saadé commented: “This … partnership will cement our innovation strategy, enabling us to benefit from technologies developed by CNES, be it to optimize our operations or to support our energy transition.”

The deal will also deepen collaboration with the satellitebased data service providers CLS and Kineis, which operate smart

ship routing and space-based Internet of Things (IoT) solutions designed to meet the digital needs of shipowners.

Earlier this month, CMA CGM announced it will continue to invest in strengthening and upgrading its shipping and logistics assets while bolstering its financial structure. worldmaritimenews.com

12

WEDNESDAY JUNE 16, 2021

13

International

WEDNESDAY JUNE 16, 2021

Banks and sustainability in a post COVID-19environment: Absa’s viewpoint on Green Possibilities

F

Some banks across the globe have responded to the pandemic by focusing on employee and customer health, payment relief and immediate business stabilisation (capital preservation, in particular).

or the majority of organisations, sustainability became less of a priority, or was, at the very least, relegated to the bottom of the boardroom agenda. Despite this, many argue that in a post-pandemic world, environmental, social and governance (ESG) strategies will be pivotal to rebuilding and growing the economy. If so, how do African banks successfully incorporate ESG into overarching business imperatives and make a positive impact in the communities and environment that they operate in whilst retaining profitability?

committees or roles are dedicated to achieving set goals - ensuring that sustainability is embedded within the core business strategy and operating model. This could include the appointment of senior roles for sustainability, tasked to lead ongoing strategy and implementation.

Ultimately, banks should be responsible for driving the industry agenda forward (bringing specific ESG deadlines closer) and going above and beyond, rather than simply complying with current legislative frameworks and waiting on additional rules to be enforced.

Lead rather than follow

Balancing green and green

We have already seen tighter regulations, increasing policymaker expectations and civil society pressures to comply with ESG requirements. What’s more, investors are overly cautious about risk mitigation, given the current environment; acknowledging the inherent exposures that climate change and social discontent bring with them. Not forgetting younger generations advocating powerfully for more sustainable modes of living and of doing business, that increasingly only want to bank with institutions who they deem to be ethical and responsible.

Organisations can no longer afford to approach sustainability as a “nice to have” or as a function separate from the “real” business.

It is critical that ESG principles become a central discussion in the boardroom, and that specific

One obvious area of contribution is green financing - directing funds towards sustainable companies, investments and initiatives that generate the most positive environmental, social and economic impact, and by supporting clients to transition to more sustainable business models.

In Africa, ESG considerations are becoming increasingly important in lending decisions, especially those which include natural resources and extraction.

Lenders now place additional focus on the impact of the funding on a country’s developmental goals, the environment and its people.

However, as one would expect, a significant portion of the balance sheet includes so-called “brown assets”, and consequently, banks will need to find a balance between profit and fiduciary

duties towards shareholders, and the achievement of ESG targets.

Of course, simply “pulling the plug” on certain investments such as those involving coal and energy producers in countries that rely heavily on the resource to generate base load electricity - could result in detrimental consequences, including widescale unemployment and a complete economic halt. Yes, banks will start shifting towards funding that meets specific “green” criteria, however, data and extensive information gathering will be required to outline potential scenarios and how best to address them.

Having said this, the cost of renewable energy is certainly decreasing, and technology is evolving, making implementation and adoption much easier. While the continent has far to go in maximising energy security and implementing sustainable energy sources, great strides have been made in varying the energy mix.

Other facets banks are able to explore are loans focused on green home improvements, ESG connected bonds/ funds or partnering with development financial institutions (DFIs) to achieve specific aspirations.

Measurement, measurement and measurement One of the biggest sector debates around ESG has been the effective measurement of success. Specific targets need to be set, whether this starts with internal auditing of paper usage, carbon emissions or the extent of

green financing. Perhaps it could entail a customer and community trust index or highlight the contribution made to the development of small businesses, education and continental capacity building. Here, it is essential that every level of the business participates, and that all employees are held accountable.

Sector cooperation also allows for standard evaluation processes.

Tracking and reporting environmental impact metrics, alongside financial metrics, provides organisations with a full view of business performance.

This can help focus efforts to ensure results, increase accountability and transparency towards stakeholders, and highlight operational inefficiencies and cost saving opportunities.

Absa Group Limited is one of the funding signatories of the UN’s Principles for Responsible Banking, joining a coalition of banks globally who want to play an active role in shaping a sustainable future. These Principles provide Absa with the tools to capitalise on new business opportunities within the sustainable development economy, whilst effectively managing risk.

Going forward, it is clear that institutions that don’t start considering ESG in every decision (operational and strategic), will inevitably inhibit ongoing growth plans, and will also become the unwilling targets of regulatory and public scrutiny. Now is the time to embrace (green) possibilities.

14

WEDNESDAY JUNE 16, 2021

15

Feature

WEDNESDAY JUNE 16, 2021

Italy to promote expertise in seeds, greenhouse technology and irrigation

By Gordon Brown

G

reenhouse farming is a thriving sector in Italy thanks to companies with decades of experience in providing cutting-edge greenhouse technologies and systems for the cultivation of horticultural products, including fruits and vegetables as well as flower crops.

Aside its greenhouse expertise, Italy is also a global powerhouse in seed innovation and production as well as sustainable farm water and irrigation technologies.

As Ghana aims to boost agricultural productivity to increase output and incomes, the need to deploy modern seeds, greenhouse and irrigation technologies is critical, as this will result in more efficient agriculture and help transform the entire sector.

Through the Italian Trade Agency (ITA), Italy stands ready to introduce its technologies and specialized companies in these areas to players along Ghana’s agribusiness value chain and to also transmit valuable know-how to Ghana.

In furtherance of this, ITA will on June 22 organize virtual B2B meetings between Italian and Ghanaian agribusiness companies under the GhanaItaly Agribusiness Digital Lab project. The meetings will be hosted on a dedicated portal, https://ghana-italy.digital.ice. it, where interested Ghanaian agribusiness firms can register for participation.

The following companies specializing in seeds, greenhouse technology and irrigation will be participating in the virtual B2B session: Berries & Breeding Molari Molari Berries & Breeding, which describes itself as one brand with two souls, is an Italian company focused on high quality berries plants and a world recognized breeding program.

The company’s flagship product is raspberries, in addition to blues and blacks. Molari also holds international patents for the Enrosadira®, Castion® and Aurora® varieties, as well as the new varieties Halley and Dorotea.

Thanks to cutting-edge research and development methods, Molari Berries & Breeding has been able to build a highly

This company is a leader in the production of greenhouses covered in plastic material for horticulture and floriculture, complete with the most advanced irrigation and heating systems with computerized control.

Founded in Northern Italy, an area with a strong tradition in horticulture and floriculture, the company has been executing projects in the field of greenhouses production for over 70 years and exports its products to several countries across the world.

Idromeccanica’s greenhouse innovations for agriculture and floriculture tell a lot about the brand, such as its attention to detail, passion for quality, and outstanding customer care.

Greenhouses and everything that is delivered by the company are strictly controlled by the quality control office, with the materials used 100 percent made in Italy.

complete irrigation systems for all applications. With 14 branches and over 800 employees, Irritec has production and commercial sites in Algeria, Brazil, Chile, Italy, Germany, Mexico, Senegal, Spain, and USA. Irritec is committed to spreading the water-saving awareness through know-how transfer. In developing countries drip irrigation can contribute to the achievement of food security and economic development.

Thus, Irritec Academy is a training program which includes specific pilot projects for developing countries aimed at creating local irrigation experts and spreading the water-saving technology among agricultural communities.

Irritec expertise and innovation have been acknowledged by international awards, recently with the #Agrifuture prize from “Santa Chiara Lab” by the University of Siena in collaboration with Maker Faire Rome, the Italian Commissioner General’s Office of Expo 2020 Dubai. Irritec is an active member of the UN Global Compact and participated in the 2020 Edition of the “E-Africa Business Lab” program.

Irritec irrigation systems

Luigi Floridia Electric starters

The Irritec Group, established in 1974, is among the world leading companies in precision irrigation.

Irritec designs, manufactures and distributes complete irrigation systems, with a mission to improve the efficiency of agriculture and gardening.

Global water scarcity and growing food demand require the use of drip irrigation, the most efficient irrigation method allowing reduced consumption of water, energy, fertilizers and pesticides, and producing healthier and higher yields.

Irritec designs, manufactures and distributes products and

Luigi Floridia – Electric starters is into the design and production of electro-mechanical and electronic controllers for starting and commanding electric motors that are used on electro-pumps and other industrial automation.

Thanks to its dedicated research for innovation and cutting-edge devices, the company holds a prominent position both nationally and internationally in the domain of electric and electronic automation, which has allowed it to do business with partners in 64 nations from all over the world.

With ISO 9000:2015 and IQNet

recognized global reputation, driven by its goal to connect every dot of the berries supply chain, from distribution to growers.

Greenhouses Idromeccanica Lucchini SPA

certifications, thanks to the quality of its production processes, Luigi Floridia provides every customer with reliability and affordability on its tailored products that are uniquely shaped to customers’ requirements.

The company has a design wing devoted to constantly enhancing its equipment and developing new prototypes with the aim of marketing leading-edge products that can challenge any competitor all over the world.

Luigi Floridia is service-ready with its excellent team tasked to ensure both pre-sales and aftersales customer satisfaction, with quick response time and prompt availability of technicians and consultants, who are also able to offer remote assistance to clients.

Automated nurseries Urbinati S.r.l.

Urbinati Srl designs and manufactures modular systems for the automation and mechanization of horticultural, forest and floral nurseries.

The company has the vision of seeing “automation and mechanization in all nurseries in the world” and currently exports to over 95 countries.

Urbinati proposes customized technical solutions for nurseries for the following phases: sowing, automatic and manual transplanting, filling (pots and trays), irrigation, germination, trays washing, handling, labeling, and trimming.

All the above companies will showcase their expertise and technologies, as well as explore potential business relationships with Ghanaian agro-related enterprises, during the GhanaItaly Agribusiness Digital Lab on June 22. It is an opportunity not to be missed by the Ghanaian agribusiness sector.

16

WEDNESDAY JUNE 16, 2021

17

Markets

WEDNESDAY JUNE 16, 2021

WEEKLY MARKET REVIEW FOR WEEK ENDING JUNE 11, 2021

CONTINUED ON PAGE 18

18

WEDNESDAY JUNE 16, 2021

CONTINUED FROM PAGE 17

WEEKLY MARKET REVIEW FOR WEEK ENDING JUNE 11, 2021

CONTINUED ON PAGE 20

19

WEDNESDAY JUNE 16, 2021

20

WEDNESDAY JUNE 16, 2021