Business24 Newspaper 31st March, 2021

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WEDNESDAY MARCH 31, 2021

BUSINESS24.COM.GH

NO. B24 / 178 | NEWS FOR BUSINESS LEADERS

WEDNESDAY MARCH 31, 2021

Ghana sells US$3.025bn bonds, including first zero-coupon debt

Report: banks need robust deposit growth to finance large fiscal deficit

By Joshua Worlasi Amlanu macjosh1922@gmail.com

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he ability of financial sector institutions to finance the government’s large fiscal deficit would rely on robust deposit growth, a report by the Institute of International Finance (IIF) has said.

Cont’d on page 3

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Ken Ofori-Atta, Minister of Finance

overnment on Monday issued US$3.025bn worth of Eurobonds to international investors in four different tranches—a four-year zero-coupon bond and 7-, 12-, and 20-year bonds.

The zero-coupon bond, which

Zeepay Ghana opens ultramodern head office

is the first of its kind to be issued by an emerging market country, had a face value of US$525m and will not attract regular interest payments during its tenor.

Instead, the bond was issued at a 22 percent discount, meaning the government received 78

cents for every US$100 of the debt sold.

The 7-, 12-, and 20-year bonds had coupon rates of 7.75 percent, 8.625 percent and 8.875 percent, respectively.

Cont’d on page 2

By Eugene Davis

High internet cost affecting businesses – AGI bemoans

By Eugene Davis ugendavis@gmail.com

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he Chief Executive Officer of the Association of Ghana Industries (AGI), Seth Twum Akwaboah is urging government to provide an enabling environment that allows

ugendavis@gmail.com

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eepay Ghana, a leading mobile financial services company, has unveiled its state-of-the-art head office complex in Accra.

Cont’d on page 5

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Editorial / News

WEDNESDAY MARCH 31, 2021

Editorial

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Use innovation to widen tax net

here is no denying that the coronavirus pandemic has rendered the country needing more revenues to bridge its yawning fiscal deficit.

And as is the usual approach almost every time the country is cash-strapped the attention has to be put on the low-hanging fruits, the formal sector.

Meanwhile, the informal sector provides a means of livelihood for the vast majority of Ghanaians. The Ghana Statistical Service (GSS) pegs that figure to about 80 percent of the active workforce.

While the sector is very crucial to providing jobs that support the economy, over the years their tax contribution has been abysmally low.

Many regimes have not made the adequate effort to rope in this all too important sector into the formal economy and get them to pay what is due to the state.

Very often the refrain has been about how difficult and costly it is for tax administrators to go after these businesses especially due to the lack of a proper addressing system among others.

Thanks to technology some of these inhibiting factors are becoming obsolete by the day.

Nevertheless, the innovativeness of the tax collectors must be on full display if they are to make anything out of the abundance of technology.

In addition to mobile

money which has been a real gamechanger, this government very much touts its digital addressing system which at the very least should contribute to providing geolocations to some of these hard-to-reach businesses.

For more than a decade that mobile money has been in existence, it has been an instant success. It is disappointing that the country’s tax policies have not been tweaked to take advantage of mobile money and allow people to file their returns with that technology.

While this paper believes that widening the tax net is a very difficult thing to do, it is worth noting that the country needs to, at least, start from somewhere.

Ghana sells US$3.025bn bonds, including first zero-coupon debt Continued from cover

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“This historic bond issuance is a strong signal that investors have confidence in our plan for debt sustainability, economic recovery and growth, and that Ghana remains a pillar of stability,” said Finance Minister Ken Ofori-Atta in a statement.

“Part of the proceeds shall be used for domestic liability management. For example, using US$400m of the zero-coupon bond to refinance domestic debt with an average interest rate of 19 percent will net Ghana savings of some US$200m over the four years,” he explained.

An economist and fellow at the IMANI policy think tank, Dr. Theo Acheampong, said the yields on the bonds were not surprising.

“I think it is the best they could have gotten,” he said in an interview. “Government is caught between a rock and a hard place.

In effect, it looks like investors are interested in the yields and less about Ghana’s challenging public finances,” he added.

The total public debt stock as at December last year stood at GH¢291.6bn, which was more

Dr. Theo Acheampong

than 76 percent of the country’s GDP. Dr. Acheampong said despite the relief offered by the Eurobonds in terms of allowing government access to some liquidity, “it is not

so great for the public finances as there’s still a net addition to the debt stock even after using proceeds to repay some of the old maturing debts.”

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Report: banks need robust deposit growth to finance large fiscal deficit Continued from cover The report, which examined fiscal developments in eight sub-Saharan African countries, said Ghana was among the top three countries where banking institutions had taken on an unprecedented role in financing fiscal deficits.

“While Ghana and Côte d’Ivoire were able to tap the international bond market—the former before the COVID-19 shock and the latter thereafter—domestic financial institutions purchased large amounts of sovereign debt.

Relative to GDP, the increase in banks’ claims on government was biggest in Angola, Zambia, Ghana and Kenya. In other countries, first and foremost Ghana, central banks also provided fiscal support and took some pressure off local financial institutions,” the institute, which is a global financial services industry trade body, said.

Across sub-Saharan Africa (SSA), local banks, and in some cases other financial institutions,

were of critical importance for providing funding to governments, it added.

Ghana’s domestic debt as at December 2020 stood at GH¢149.83bn, representing 39.1 percent of GDP and an increase of 42 percent from the 2019 position. The proportion of the

debt held by the banking sector stood at 52.3 percent, comprising the Bank of Ghana with 22.4 percent and deposit money banks with 29.9 percent.

The public debt-to-GDP ratio increased from 62.4 percent in 2019 to 76.1 percent by the end of December 2020, representing a

13.7-percentage-point increase.

Ghana is still grappling with the effect of the COVID-19 pandemic on government finances, similar to other countries across the world, as cyclical revenue weakness, fiscal stimulus measures, and additional spending related to the public health crisis widened deficits and led to a sharp increase in sovereign debt.

In 2020, government’s revenue and expenditure performance resulted in an overall fiscal deficit of 11.7 percent of GDP (excluding the financial sector clean-up cost) compared to the programmed deficit target of 11.4 percent of GDP. This placed Ghana secondhighest in terms of fiscal deficits in SSA, according to the IIF. “What is more, while growth is expected to bounce back across SSA in 2021, the process of fiscal consolidation will be a multi-year undertaking and, thus, financing needs will remain elevated over the next few years.”

The institute said with deposit growth likely to gain momentum in line with the anticipated output recovery in 2021, banks should be able to expand lending to corporates and households.

High internet cost affecting businesses – AGI bemoans Continued from cover mobile network operators to reduce the high cost of internet in order for businesses to maximise the benefits of digital transformation.

“I think we need to work towards reducing the cost of data.

For me data is expensive in Ghana, elsewhere data is so cheap. You are talking of digitisation, you are talking of all villages being part of it –if the cost of data is expensive it is an obstacle for them to be actively involved,” he said at the launch of Africa International Development and Communications Consultancies Digital Solutions Center (AIDEC) in Accra.

He also maintained that AGI will continue to promote digitisation concepts and will work closely with its members to ensure that they break into the global markets.

The CEO of Ghana Enterprises Agency (GEA), Kosi Yankey-Ayeh speaking at the event stated that the digital solutions centre

by AIDEC is a good example of what micro, small and medium enterprises need in these times of AfCFTA.

She added that presently GEA is piloting a programme to digitise 500 businesses across the country, with the hope that it will turn into job creation ventures because they will be able to sustain their operations, expand and employ others.

CEO for AIDEC, Ambrose Yennah indicated that his outfit’s

aim is to use integrated services to do business in Africa.

He also added that AIDEC is keen to support micro, small and medium enterprises to make a transition from traditional ways to doing business to digital so businesses can be sustained especially with the advent of AfCFTA.

AIDEC Group is a premier network group of companies providing quality services in consulting, retail and haulage of petroleum products, supply of house hold consumables, importation and distribution of South African wines.

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News

WEDNESDAY MARCH 31, 2021

GRA to enhance revenue generation in 2021

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he Ghana Revenue Authority (GRA) has announced measures to enhance revenue generation in 2021.

These measures are to widen and increase the tax net to cover the informal sector, increase the domestic and external VAT yield, and develop mechanisms for taxation of emerging e-commerce and high net worth individuals.

It would also promote voluntary tax and customs compliance through increased taxpayer education and simplifying their interfaces with tax payment platforms.

According to a report of the Finance Committee of Parliament, officials of the Authority announced the measures at a meeting with the committee to consider the estimates for year ending 2021.

The report said the GRA had projected to take in total non-oil tax revenue (Gross) of GH¢57,055.57 million for the year ending 31st December, 2021.

This is as against the 2020 provisional outturn (actual lodgement) of GH¢45,154.38 million.

The report said the 2021 Expenditure Budget of the Ghana Revenue Authority would be funded from the statutory

revenue retention to be derived from a projected revenue target of GH¢57,055.57 million.

At an expenditure budget of GH¢1,471.89 million the retention level granted for the year 2021 comes to approximately 2.58 per cent of tax revenue.

The GRA announced that it intended to strengthen enforcement, including investigation, intelligence and prosecutions and minimise

revenue leakages in suspense regimes, where for example, temporary export of goods are intended to return in the same condition as exported.

It will go digital and use technology to transform revenue administration, particularly through committed implementation of TRIPS (Traderelated Aspects of Intellectual Property Rights) to ensure efficient and effective revenue

administration services.

It will also improve the cost effectiveness and efficiency of administration through staff rationalisation and adopt management information and data management systems.

Meanwhile, the House approved the sum of one GHC 1.47 billion for the activities of the GRA for the year ending 2021.

GNA

Zeepay Ghana opens ultramodern head office Speaking at the opening of the new office building located at Cantonments, Managing Director of Zeepay, Andrew Takyi-Appiah stated that the company’s business model is to create multifaceted financial products which are constantly evolving by identifying and solving needs within the payments value chain.

“It is this vision that our shareholders and partners recognized and aligned with and have helped sustain this company from a pipe dream into this wonderful reality we see here today,” he said.

Dr. Ernest Addison, Governor of the Bank of Ghana, in a speech read on his behalf, said the bank has created the right conditions to nurture and harness the talents and creative skills of Ghanaian innovators in the fintech space.

The impact of innovative Fintech-driven financial products and services has been phenomenal –from employment creation to foreign direct investments, technology transfer, and skills

enhancement to financial inclusion, making the footprints of Fintechs very visible, he added.

He maintained that the positive developments place a lot of responsibilities on Fintechs to operate efficiently and remain compliant with the relevant laws, directives and policies of the central bank.

“This is the only way that we can build consumer confidence and trust in financial digitisation, as well as ensure the delivery of sustainability of the financial products and services that are churned out by Fintechs.” the Governor added.

The Chief of Staff, Frema

Osei-Opare, who was the guest of honour reiterated the government’s commitment to deepening the financial services sector, saying that: “it is obviously a nerve center of the Ghanaian economy”.

“Zeepay’s success is indeed a classic example of how enabling policies can open up a local economy, generate direct and indirect employment while ensuring that national wealth is distributed proportionally,” she said.

The chairman of the board of Zeepay, Paa Kwasi Yankey, stated that the location of the new building was to have direct access

to the new business district.

“Our new building has a multi-million dollar value and is situated in a prime location in Accra. We chose Cantonments to give us direct access to the new business district in the area where companies like VIVO, PwC and E&Y amongst others are located,” he said.

New office The head office was purposely built with high-tech facilities which adopt artificial intelligence technology in several of its features.

The Zeepay campus also features ultra-modern recreational facilities such as a gym, pool, and onsite coffee shop in an effort to promote a healthy work-life balance for staff.

Zeepay is one of the fastestgrowing mobile financial services companies in Africa with operations in Ghana and the United Kingdom, terminating to 20 African countries with termination agreements in over 90 jurisdictions globally.

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WEDNESDAY MARCH 31, 2021

VACANCY

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News

WEDNESDAY MARCH 31, 2021

Golden Star announces amendment of Bogoso-Prestea Mine Sale Agreement

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olden Star Resources has agreed with Future Global Resources (FGR) Limited and its major shareholder, Blue International Holdings Limited, to amend a share purchase agreement dated July 26, 2020.

The agreement is about the sale of Golden Star’s 90 per cent interest in the Bogoso-Prestea Gold Mine in Ghana to FGR, as supplemented by a letter agreement dated September 30, 2020.

“The staged payments that form the deferred consideration, as outlined in the Share Purchase Agreement, have now been reprofiled to allow time for FGR to complete the environmental

bonding process for BogosoPrestea and to bring forward the second deferred payment due in 2021 such that both staged payments will be made together on 31 May 2021, some two months earlier than previously anticipated,” a statement from Golden Star Resources said.

The company said the $5 million payment that was due on March 30, 2021, will now be paid by no later than May 31, 2021; the $10 million payment that was due to be paid on July 31, 2021, will be brought forward for payment by no later than May 31, 2021; and approximately $4.6m (comprised of the working capital balancing payment of

approximately $4.3 million and fees of approximately $0.3 million for services provided by Caystar to FGR under a transition agreement dated September 30, 2020) will continue to fall due by no later than July 31, 2021.

It added that under the terms of the Amendment Agreement, FGR will put in place

a reclamation bond in respect of its environmental rehabilitation obligations for Bogoso-Prestea, and pay to the Environmental Protection Agency of Ghana the amount agreed with the EPA by no later than March 30, 2021, or such later date as may be agreed between the EPA and FGR. GNA

AfCFTA: Government to facilitate special financing windows to support businesses

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he Ministry of Trade and Industry has revealed that it will collaborate with financial institutions to establish Special Financing Windows for products of strategic sectors to harness the benefits of Africa Continental Free Trade Area (AfCTA).

The Ministry said it would ensure that Ghanaian businesses benefited from the roll out of the proposed Pan-African Payment and Settlement System (PAPSS) by Afrexim Bank and the Africa Trade Insurance (ATI) to provide export credit, insurance and guarantees for businesses in Africa under the AfCFTA agreement.

This was contained in a speech read on behalf Mr Allan Kyeremanten, Minister of Trade and Industry, in Accra at the Graphic Business and Stanbic Bank Breakfast meeting on the theme: “leveraging AfCFTA: The Critical Success Factors”.

Currently, the Monetary Policy Rate, which has become an important benchmark for pricing lending rates in Ghana, stands at 14.5 percent compare to 3.5 percent in South Africa, 4 percent in Cote d’Ivore, 7 percent in Kenya and 11.8 percent in Nigeria.

He announced that government since 2017 had implemented a number of interventions aimed at supporting the business community with improved access to finance as well as reduce the cost of credit.

These include the Financial Stimulus Package for local industries, implemented with the support of participating financial institutions; the banking

sector reforms which had yielded improved liquidity in the sector; the proposals to establish a Domestic Credit Rating Agency to assist firms with access to capital; and Ghana Stock Exchange Market Initiatives to help attract capital to Ghanaian businesses.

He said under the National Action Plan for Boosting IntraAfrican Trade, the government was seeking to bridge the information gap by providing adequate, easily accessible, and timely information necessary for businesses to take full advantage of the opportunities under AfCFTA. The Minister said the Ghana Export Promotion Authority and the National AfCFTA Coordinating Office had intensified activities under the One-stop Shop Market Hub for the provision of integrated relevant exports trade information, including linking the Hub with the African Trade Observatory which had been established as one of the operational instruments under AfCFTA. In addition, Mr Kyerenmanten said the Ministry was developing a structured framework to assist the Ghanaian private sector to establish regional networks to share information on business, export, and other market opportunities across Africa.

He said the Ministry with support from the African Development Bank and International Fund for Agricultural Development had established 67 Business Resource Centres across the country to provide business development services to Micro, Small and Medium Enterprises (SMEs) as well as serve as service centres at

the district level.

Mr Kyerenmanten said in 2018, the total imports by Ghana amounted to about $12 billion, stressing that the top 30 imported commodities which constituted about 57 per cent of the total annual import bill in the same year were largely from outside the continent of Africa.

On the other hand, Ghana’s total exports in 2018 was $14. 8 billion including non-traditional exports of about $2.9 billion, a significant proportion of the amount constituted exports to market destinations outside of Africa in Europe, North America,

and Asia.

Mrs Emily Mburu-Ndoria, Director, Trade in Services, AfCTA Secretariat, said African countries had about 107 products to trade among themselves and called for proper harmonization in all aspects of the sectors to utilize the full benefits of AfCTA. She said AfCFTA was expected to boost Ghanaian exports, stimulate investments and innovation, foster structural transformation, improve food security, enhance economic growth, and export diversification.

GNA

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Feature

WEDNESDAY MARCH 31, 2021

9 Ways to express your appreciation to employees at work

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ere are nine ways to show your appreciation to employees and coworkers.

Go ahead and make their day.

1. Praise a job well done Identify the specific actions that you found admirable in the employee. Praise the employee for doing an excellent job. This praise feels sincere since you took the time to spell out details—not just, “You did a good job.” Also emphasize the actions that you would like to see the employee do more often. Everybody benefits when people experience a clear direction. For example, “Mary, your research message is visual and much appreciated when you enclose graphics and charts when you write your reports.”

2. Say thank you Show your appreciation to your employees for their hard work and contributions. And, don’t forget to say please often as well.

Social niceties do belong at work.

A more gracious, polite, civilized workplace is appreciated by all.

3. Learn your coworkers’

interests Questions and acknowledgments about their family, their hobby, their weekend, or a special event they attended are always welcome.

Your genuine interest—as opposed to being nosey—causes people to feel valued and cared about. Demonstrate this interest regularly by asking questions such as, “How did Akua’s birthday party turn out this weekend?”

4. Offer flexible scheduling Since work coverage is critical, post a calendar so people can balance their time off with that of their coworkers. Allow employees to choose time or days off. This is a much better solution than the manager picking and choosing who gets time off and when. Remember that a flexible work schedule is a benefit that employees desire all of the time.

will light up your coworker’s day.

A greeting card serves the same purpose. You can give a card for no reason at all, to celebrate a special day such as a birthday, or to offer sympathy when a coworker is ill or experiences a family death.

the wealth of opportunity to all employees. They will genuinely appreciate the opportunities.

Authored by: Mrs. Margaret TitusGlover

6. Provide financial incentives End of the year bonuses, performance based incentives, quarterly bonuses, and gift certificates say “thank you” very nicely.

7. Colleague day / night out Take your colleagues out on special occasion, or for no reason at all. Let them pick the restaurant. Or, order pizza for lunch from a caterer or a restaurant that delivers. Schedule a brunch for a team that has met its current goals and over-delivers on its promised timeline.

5. Present a personalized gift

8. Bring in little surprises

Know your coworker’s interests well enough to present a small gift occasionally. An appreciated gift and the gesture of providing it

Offerings such as biscuits or cakes, particularly anything that you have baked personally, are a huge hit. Sharing chocolates is another hit. Bring chocolate— chocolate anything.

9. Provide an opportunity for advancement People want chances for training and cross-training. They want to participate in a special committee where their talents are noticed. They like to attend professional association meetings and represent your organization at events. Do you only allow executives and top management attend these events? Spread

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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.

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News

WEDNESDAY MARCH 31, 2021

WTO launches Trade for Peace Network in support of fragile and conflict-affected states

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rade for Peace Network has been launched at a meeting attended by ambassadors from WTO members and observers, heads of international organisations and experts involved in the WTO Trade for Peace initiative.

The network will allow policymakers and experts to exchange ideas and identify concrete areas of collaboration, with the aim of leading to effective action in fragile and conflict-affected (FCA) states.

The Trade for Peace Network aims at providing a platform for regular exchange between policymakers and experts from the trade, peace and humanitarian communities so that they can explore the nexus between the multilateral trading system, peace and security.

It will also explore areas of collaboration between members of the network to support FCA states in achieving stability and prosperity through WTO accession.

WTO Director-General Okonjo-Iweala

Moreover, it will establish an agenda and roadmap for the Trade for Peace initiative.

This could include partnership engagement, public dialogue and outreach, collaborative research, and training and capacity building.

In a video message addressed to participants in the inaugural

meeting, WTO Director-General Okonjo-Iweala said: “At its core, the WTO accession process is about institution building on the pillars of non-discrimination, transparency and the rule of law.

The economic reforms acceding countries implement contribute to stabilizing trade flows and disincentivizing

United States and Ghana Partner to Strengthen Ghana’s Fisheries Sector

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n March 30, 2021, U.S. Deputy Chief of Mission Christopher J. Lamora joined officials of the Government of Ghana, academia, civil society, and the private sector in a virtual learning event marking the conclusion of the Sustainable Fisheries Management Project (SFMP), a seven-year, US$24 million program funded through the U.S. Agency for International Development (USAID).

The Minister of Fisheries

and Aquaculture Development, Hawa Koomson, and the Ghana Fisheries Commission Executive Director, Michael Arthur Dadzie, were among those in attendance.

In his remarks, Deputy Chief of Mission Lamora commended the SFMP’s work to strengthen fisheries sector management, noting that “We should all celebrate our collective achievements while recognizing that more work is needed to rescue Ghana’s small pelagic

fisheries, which are in a dire state.”

He also reiterated the willingness of the United States government to work with stakeholders to rebuild fish stocks that have been increasingly at risk due to illegal, unreported, and unregulated fishing and to help ensure a locally sourced, nutritious, and sustainable supply of protein. Speaking at the event, Ms Koomsoon added “together we can change the

conflict. Three and a half years ago, a number of conflict-affected and fragile countries came together to work on helping fragile countries accede to the WTO. They need your support.”

The DG continued: “The launch of the Trade for Peace Network is timely. As the economic fallout from the pandemic has helped to highlight, while all countries are interdependent some are much more fragile than others.

The Trade for Peace Programme recalls the ethos of the Marrakesh Agreement that the WTO is about people.

We must focus on delivering for people in fragile and conflict affected countries. We must reverse and prevent the further breakdown of stability. Members of the new Trade for Peace Network have an important part to play. Your expertise and collaboration are required to enrich the research, enhance coordinated efforts and achieve real, tangible, and effective change.”

narrative and support actions for sustainable management of Ghana’s fisheries to ensure food security and the livelihoods of fishers.”

Through the SFMP, the University of Rhode Island partnered with the Ministry of Fisheries and Aquaculture Development and the Fisheries Commission to strengthen datadriven decision-making, improve the fisheries sector regulatory framework, adopt responsible fishing practices to facilitate rebuilding Ghana’s marine fish stocks, and ensure viable livelihoods for fisherfolk. The project also facilitated Ghana’s first-ever one-month closed season for the small-scale marine canoe sector in 2019 to help rebuild depleted species and launched a Canoe Identification Card system to better regulate the number of canoes active in the sector.

The SFMP complemented Ghana’s ongoing efforts to address the immediate effects of COVID-19 by disseminating information to fishing communities on health and safety protocols, including via a widely viewed video produced by popular Ghanaian musician Kofi Kinaata, and piloted an economic safety net program with approximately 2,000 vulnerable households.

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Maritime, Trade and Logistics

WEDNESDAY MARCH 31, 2021

New landing sites for Osu, Mfantseman and Otuam

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inister of Transport, Kweku Ofori Asiamah, has revealed that government has earmarked three towns namely Ekumfi Otuam, Osu, and Mfantseman for the construction of modern fish landing sites.

This will bring the total number of such projects along the country’s coastal regions to 14 with similar ongoing projects in Axim, Dixcove in the Western Region; Moree, Elmina, Senya Beraku, Gomoa Fetteh, Winneba, Mumford in the Central Region; James Town, Teshie in the Greater Accra Region and Keta in the Volta Region.

Giving an overview of the transport sector on GPHA’s Eye on Port programme, the minister said that these projects were a manifestation of the vision of the President Nana Addo Dankwa Akufo Addo to give the artisanal fishing industry a major facelift.

“The fishing landing sites project is very key to the President. In the 90s, the then Ministry of Agriculture came out with a feasibility study that said the conditions of our fisher folk were not the best and for that matter we needed to improve.

They came out with this fish

landing sites idea,” he said.

According to him, a funding facility has been secured from the Belgian government to transform the fish landing site in Elmina to a fishing harbor and for that matter, an initial CDB funding available for Elmina project has been diverted for the construction of the additional landing sites.

Similarly, Jamestown project

is also being developed into a fishing harbor funded separately by a grant from the Chinese government, he said.

Mr. Ofori Asiamah who has been sworn into office for a second term said all these projects are steadily ongoing and when completed, will provide employment and improve lives of Ghanaians, increase productivity of the fishing industry.

He encouraged Ghanaians to be circumspect in their judgements of such projects saying while some projects across the country may not demonstrate physical construction works yet, many significant processes are being undertaken to ensure that the outcomes of the projects reflect their original design and purpose.

Suez Blockage: Harbour Master predicts minimal impact on Ghana

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he Harbour Master at the Port of Tema, Captain Francis Kwesi Micah, has predicted that cargoes bound for Ghana on the direct service route from the Far East would not be affected by the grounding of the giant containership Ever Given which caused a major blockade in the Suez Canal.

“Vessels from Japan, Korea, Singapore, China, Indonesia, Australia would not be affected.

They will come directly via Singapore as their last stop and round Cape of Storms before they come to West Africa,” he explained.

Speaking on the Eye on Port program, he also revealed cargoes bound for the west coast of Africa on direct delivery from Europe and the Americas would also not be affected by delays associated with the Suez Canal.

“Rotterdam, Antwerp,

Hamburg, Le Havre, will also not use the Suez Canal.”

Capt. Micah however indicated that “vessels that would require transshipment at the main transshipment hubs at the southern part of Europe such as Algeciras in Southern Spain, Tangier, Casablanca in Morocco, where big shipping lines like Maersk, MSC and Hapag-Llyod do a lot of shipments may be affected.”

He added, “If we have connections from the Middle East that hitherto had to do the transshipment in Southern Europe, it will mean the vessels already slated to come, will not wait, but the volumes that they come with will be affected.”

The Harbour Master at the Port of Tema, lamented that some of the produce coming in from the Suez Canal may constitute very essential items that are important to the operation of factories and industries worldwide.

He said the global supply chain will be widely affected especially in the oil and gas sector considering that the middle east is a major exporter of crude oil.

Capt. Micah also said major supplies in the COVID-19 fight may delay as a result of the blockade that happened in the Suez Canal.

The containership, Ever Given has since Monday, 29th March 2021, been freed and traffic is set to resume in both directions through the canal.

According to the BBC, hundreds of ships are waiting to pass through the Suez Canal.

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ally C. Davies, Jeremy Farrar im O’neill

WEDNESDAY MARCH 31, 2021

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Feature

WEDNESDAY MARCH 31, 2021

The case for open land-data systems

By Tim Hanstad

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ast month, a former Zimbabwean cabinet minister was arrested for illegally selling parcels of state land. A few days earlier, a Malaysian court convicted the ex-chairman of a state-owned land development agency of corruption. And in January, the Estonian government collapsed amid allegations of corrupt property dealings. These recent events all turned the spotlight on the growing but neglected threat of land-related corruption. flourish in countries that are unprepared to manage the heightened demand for land that accompanies economic and population growth. Land governance in these countries – institutions, policies, rules, and records for managing land rights and use – is underdeveloped, which undermines the security of citizens’ land rights and enables covert land grabs by the well connected.

In Ghana, for example, the government keeps land records for only about 2% of currently operating farms; the ownership of the remainder is largely undocumented. In India, these records were, until recently, often kept in disorganized stacks in government offices.

Under such circumstances, corruption becomes relatively easy and lucrative. After all, when recordkeeping is nonexistent or chaotic, who can confidently identify the rightful owner of a parcel of land? As the United Nations Food and Agriculture

Organization and Transparency International put it in a report a decade ago, “where land governance is deficient, high levels of corruption often flourish.” This corruption “is pervasive and without effective means of control.”

Globally, one in five people report having paid a bribe to access land services. In Africa, two out of three people believe the rich are likely to pay bribes or use their connections to grab land. Uncertainty about land rights can also affect housing security – around a billion people worldwide say they expect to be forced from their homes over the next five years.

Inevitably, the marginalized and vulnerable are the worst affected, whether they are widows driven from their homes by speculators or entire communities subjected to forced eviction by developers. Weak land rights and corruption also fuel conflict within communities, such as in Kenya, where political parties promise already-occupied land to supporters in an attempt to win votes.

But there is reason for hope. The ongoing revolution in information and communications technology provides unprecedented opportunities to digitize and open land records. Doing so would clarify the land rights of hundreds of millions of people globally and limit the scope for corrupt practices.

Robust land rights upheld by strong institutions not only strengthen housing security but also boost countries’ economic

prospects, because people gain confidence to invest in land and businesses, and companies and individuals can use land as collateral to gain access to credit. Moreover, secure rights enable governments to increase revenue by collecting property taxes. And when land records are easily accessible for inspection, governments can be held accountable, ownership and use rights can be more easily protected, and land markets become fairer and more dynamic.

Given the benefits of open, accessible digital land records, it should come as no surprise that many countries, including India, Bangladesh, Sri Lanka, and Mauritius, are currently digitizing their land records or have recently completed this process.

Other governments seeking to reduce corruption and make development more inclusive can follow four recommendations – drawn from a new report by the German development agency GIZ and a related Land Portal webinar – for documenting, digitizing, and opening their own records.

For starters, existing property records should be verified and upgraded before digitization.

Digitizing the inaccurate or incomplete paper records that exist in many settings will only perpetuate the problem.

Policymakers should also ensure the active participation of women and disadvantaged groups. While a system that works for the vulnerable will also work for the well connected, the inverse is often untrue. These disadvantaged groups must

play an active role not only in collecting the data (to build trust and ownership), but also in the creation and evolution of the land-records system itself.

Furthermore, to increase transparency and fight corruption, land data should be open by default. Any exceptions must be clearly justified as being necessary to protect the vulnerable. And while such an approach could be risky, these risks can be managed, for example by making vulnerable owners’ names available only to government officials above a certain rank.

Finally, systems should be fit for purpose and context. Current technological possibilities alone should not dictate the design of open land-data systems. Instead, governments should establish their goals and priorities, and create an open land-data system to fulfill their needs. It is also important to recognize that context matters – what works in one setting may not work in another.

To be sure, open land-data systems are no magic bullet. They guarantee neither transparency nor accountability. But forwardthinking governments should embrace these systems as crucial tools in the process of stamping out corruption and safeguarding the land rights of all members of society.

About the author Tim Hanstad, CEO of the Chandler Foundation, is Co-Founder of Landesa and a Skoll Social Entrepreneur Awardee.

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