Business24 Newspaper 19th may, 2021

1

WEDNESDAY MAY 19, 2021

BUSINESS24.COM.GH

NO. B24 / 197 | NEWS FOR BUSINESS LEADERS

MONDAY WEDNESDAY MAY MAY 3, 2021 19, 2021

Oil companies must act quickly to attract investment—IES Dr. Maxwell Opoku-Afari

‘Ghana has to sustain flat curve to reset economy’

By Joshua Worlasi Amlanu macjosh1922@gmail.com

T

he First Deputy Governor of the Bank of Ghana, Dr. Maxwell Opoku-Afari, has said that Ghana needs to sustain a flat Covid-19 curve to create the conditions to reset the economy from the effects of the pandemic.

Cont’d on page 3

FPSO John Evans Atta Mills

By Benson Afful affulbenson@gmail.com

E

nergy think tank Institute for Energy Security (IES) says the best time for oil producing companies to attract investment into the upstream petroleum sector from the coming green revolution is now.

“Announcements by oil majors, governments, industry experts, think tanks, banks and institutional investors, at end first quarter 2021, show that the

best time to attract investment into the upstream petroleum sector from the coming green revolution is now,” IES said in its latest analysis.

The think tank said neither oil and gas companies nor oil producing countries will be unaffected by clean energy transitions, so every part of the industry is considering how to respond.

It said the energy transition coupled with the low oil price environment is affecting negatively the operations of

ECONOMIC INDICATORS EXCHANGE RATE (INT. RATE)

Business24 Limited.

Copyright@2020 All Rights Reserved.

Tel: +233 030 296 5297 Editor@thebusiness24online.net

POLICY RATE

14.5% 14.77%

OVERALL FISCAL DEFICIT

11.4% OF GDP

AVERAGE PETROL & DIESEL PRICE:

4.2% GHC 5.13

T

he Managing Director of Imperial General Assurance, Robert Wugah, has appealed to Ghanaians to protect each other against the spread of the deadly COVID-19 pandemic.

He said despite the development of vaccines and the decreasing

Cont’d on page 2 INTERNATIONAL MARKET

US$1 = GHC 5.7606

GHANA REFERENCE RATE PROJECTED GDP GROWTH RATE

fossil fuel companies, adding that many oil companies, including major ones, are therefore looking to diversify their energy operations and redeploying capital towards low-carbon businesses given the attractive investment opportunities in the new energy markets.

It said leading individual oil companies are spending hugely on projects outside core oil and gas supply, with the largest

We must protect each other against COVID-19—Imperial General Assurance MD

BRENT CRUDE $/BARREL NATURAL GAS $/MILLION BTUS GOLD $/TROY OUNCE

Follow us online: $57.79 $2.6801,922.57 $1,836.62

CORN $/BUSHEL

$543.75

COCOA $/METRIC TON

$123.55

COFFEE $/POUND:

Cont’d on page 3

facebook.com/business24gh twitter.com/business24gh linkedin.com/pg/business24gh instagram.com/business24gh

2

Editorial / News

WEDNESDAY MAY 19, 2021

Editorial

Let’s sustain the drive

T

he country will this morning commence giving the final dose of the Covid vaccine to persons that took their first jabs a few months ago.

The second and final dose of the vaccine suffered undue delay largely due to the unavailability of vaccines.

The global vaccine production has suffered from a general low manufacturing capacity as well as a deadly wave of infections sweeping through India, one of the leading manufacturers of Covid vaccines.

Despite the delay in making the second jabs available, President Nana Akufo-Addo, in his latest address on measures taken to combat the virus insists that government remains committed to ensuring that nearly 20

million Ghanaians are inoculated by year’s end.

Given that the rebound of the economy depends largely on the vaccination, it is important that mass public education that heralded the first phase of the exercise must be sustained and possibly enhanced as the inoculation programme begins to extend to the larger population.

There is no denying that there is a significant number of Ghanaians who are skeptical of the vaccine and its so-called side effects if any. Whereas the basis for this skepticism may be unfounded, it could still have a telling impact on how the overall vaccination plan turns out.

The devastation as seen in countries like the USA, Spain, Italy, Brazil, and now India,

indicates how debilitating the virus could be. Nevertheless, it has been established that the vaccines available are crucial to averting such calamity.

The more people get vaccinated, the less room for the virus to move and mutate.

Beyond the comprehensive awareness creation, citizens equally have to take it upon themselves to convince their relatives and friends to get vaccinated.

This paper believes that despite the country’s relatively low infection rate, the battle is far from won and every citizen has a role to play in keeping the virus at bay. And one of such proven ways is to keep to the approved protocols and receiving the jab when it becomes available.

Oil companies must act quickly to attract investment—IES 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.

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

outlays in solar photovoltaic (PV) and wind.

“Some oil and gas companies have also ventured into new areas by acquiring existing non-core businesses, such as electric vehicle charging, storage batteries, and electricity generation and distribution, while stepping up research and development activity. A much more significant change in overall capital allocation is helping to accelerate energy transitions,” the IES added.

In 2019, for instance, global investment in renewable electricity generation reached US$254bn, while investment in fossil-based electricity generation totaled US$130bn.

This, the institute said, indicates that power from renewables received almost double the investment that fossil fuel generation did.

With global funding directed at green energy, both national oil companies (NOCs) and international oil companies (IOCs) are vigorously engaging in renewable energy activities across the entire spectrum, it said.

For instance, it said while Saudi Aramco has revealed plans to launch a new US$500m fund to

promote energy efficiency and renewable technologies, China National Offshore Oil Corporation (CNOOC) has revived its activities in offshore wind power in 2019, after closing its renewable unit in 2014.

“The greatest motivation for big IOCs to invest heavily in renewable technologies and projects is because that is where the cash is drifting. The international oil companies have found investment in renewables as equally presenting itself as stable, cost-effective and attractive, offering consistent and predictable returns.

“In recent years, Royal Dutch Shell has strengthened its alternative energy division and created a strategic framework for resilience by investing in green energy as a way to play a relevant role in the energy transition.

Shell plans to invest US$3bn in renewable energy (including hydrogen) per year by 2030. BP Plc has announced that it would add 50 GW of renewables (wind, solar and hydropower) to its portfolio by 2030 (up from 2.5 GW currently).

“ENI has also emphasised its interest in renewables by forming several partnerships to develop joint projects with other companies, such as General Electric (GE) and Statoil (now Equinor),” the IES said.

The institute added that the trend shows many oil companies are cutting down on investment into hydrocarbon exploration and production, and others suspending their planned projects, due to the unattractiveness of hydrocarbon production compared to green energy.

3

WEDNESDAY MAY 19, 2021

‘Ghana has to sustain flat curve to reset economy’ Continued from cover The pandemic disrupted the strong economic outlook for last year, as Gross Domestic Product (GDP) growth slumped to 0.4 percent in 2020—the lowest in decades—compared with the preCovid projection of 6.8 percent.

Speaking at the 5th Ghana CEO Summit, dubbed “Resetting Ghana’s Economy: Policy Response and Strategies for Building a Resilient Economy Post-Covid Pandemic”, Dr. OpokuAfari said a flare-up of Covid-19 infections could potentially slow the recovery process.

The country has currently stabilised its Covid infections, after a surge in cases earlier in the year, with 1,308 active cases as at May 14.

Recommending short-term strategies to reset the economy, the First Deputy Governor said, “First, sustain the flattened Covidcurve. By this, priority must be given to health sector policies and other supportive measures including testing, tracing, and treatment. [In addition,] mass vaccination roll-outs should continue to achieve some form of

herd immunity.”

He added: “The flattened curve would keep the economy open for business, provide some certainty to the economic outlook, and prevent diversion of resources to any resurgence of the pandemic.”

Last year, fiscal pressures from the health sector and the social consequences of the restricted movements disrupted the government’s fiscal projections through increased, Covidinduced expenditures.

As a result, additional expenditures related to Covid-19, coupled with revenue shortfalls on account of the economic slowdown and sharp drop in oil prices, raised the 2020 fiscal deficit to 11.7 percent of GDP, from a pre-Covid projection of 4.7 percent of GDP. These unanticipated fiscal developments also pushed up the stock of public debt to 74.6 percent of GDP at the end of 2020 from 62.4 percent of GDP in 2019.

Dr. Opoku-Afari recommended that government maintain the Covid-19 policy responses to sustain the on-going V-shaped recovery.

“To a large extent, the Covid

policy responses—accommodative fiscal and monetary policies, macro-prudential measures, and other initiatives—proved timely and helped moderate what could possibly have been a worst outcome for the Ghanaian economy. Already, the implementation of these policies has spurred some recovery, evidenced by improvement in the [central] bank’s high frequency economic indicators for the first quarter of 2021.”

After the outbreak of the pandemic last year, inflation

spiked from single to double digits, reaching 11.4 percent in July 2020—driven mainly by food price pressures due to the lockdown measures—before easing to 10.4 percent in December.

“Inflation has eased and declined back to single digits in April 2021, the exchange rate remains relatively stable, business and consumer confidence has bounced back, and the [central] bank’s high frequency indicators have rebounded to near prepandemic levels,” Dr. Opoku-Afari added.

We must protect each other against COVID-19—Imperial Mr. Reginald Oklah, Head of ‘1’ classroom block, which General Assurance MD Sales and Marketing, and Mr. accommodates pupils in four Continued from cover

rate of new infections and deaths in the country, it is important that the safety protocols are duly followed.

“I entreat all of us to continue to abide by the COVID-19 protocols.

The safety of our family members, friends, and everyone is in our hands. We must continue to observe social distancing, wear nose masks, wash our hands under running water, sanitise our hands, and avoid crowded and poorly ventilated indoor spaces.”

Mr. Wugah gave the advice when he donated COVID-19 preventive items on behalf of Imperial General Assurance to two basic schools in Accra.

The schools, St Peter’s Anglican Cluster of Schools and Rashad Islamic School, located at Ofankor and Mallam Atta respectively, both received 15,000 pieces of nose masks, 768 bottles of sanitisers, gallons of liquid soap, and hands-free Veronica buckets.

He said the donation

formed part of the company’s contribution to stem the spread of COVID-19.

Mr. Wugah was accompanied by some members of the company’s management team:

Abdel-Aziz Osman, Chief Finance Officer.

As part of the intervention, Imperial General Assurance also constructed a wall around the St. Peter’s Anglican Basic

classes.

The construction of the wall brings to a stop the perennial flooding of the classrooms, particularly during the rainy season, which hitherto disrupted teaching and learning and also exposed the lives of pupils and teachers to health risks.

The company has also fixed the recurrent electricity supply challenges facing the Rashad Islamic School. The erratic power supply had caused poor visibility conditions in the classrooms, a situation that negatively affected effective teaching and learning.

The heads of the two schools thanked the company for its support and commitment towards the advancement of the cause of education. They promised to judiciously put to use the donated items for the benefit of the pupils and the running of the schools.

Imperial General Assurance is a wholly Ghanaian-owned insurance company which provides non-life insurance solutions in the country.

4

WEDNESDAY MAY 19, 2021

5

News

WEDNESDAY MAY 19, 2021

Denmark pledges increased investments and support to water sector

By Patrick Paintsil p_paintsil@hotmail.com

D

anish Ambassador to Ghana Tom Nørring has indicated that his country remains committed to partnering government in finding longterm sustainable solutions to the nation’s water problems through direct investments and expertise sharing.

In an interview with Business24, he said more than 50 percent of the country’s treated water is lost in the pipelines— from the production source to consumers—whilst one-third of the nation’s population remain in

need of clean drinking water.

“That’s the huge challenge and one that we need to find solutions to. So, we [Danish Embassy] are trying to bring the solutions in ways that offer opportunities to Danish companies,” said Mr. Nørring.

“This is a commitment that we are already living out; we’ve done it for several years as a development partner,” he added.

The Ambassador spoke to Business24 during the final of the embassy’s water innovations contest, dubbed “Next Generation Water Action”, in Accra.

According to him, the Danish embassy was bringing down

Danish investors and firms to explore opportunities in the country’s water sector “We strongly believe that to have long-term sustainable solutions to water, we need to bring in real foreign direct investments and contributions by way of expertise and knowledge sharing. We are bringing Danish companies that have a long history in developing water solutions to form partnerships and share expertise that will ensure longterm sustainable solutions to water problems in Ghana.”

Next Generation Water Action is an ambitious initiative that engaged young talents from

Ghana’s contestants in the “Next Generation Water Action” contest and their lecturers

leading universities and earlystage start-ups.

In collaboration with corporate and public partners, more than 100 students and entrepreneurs of early-stage start-ups from Denmark, Mexico, India, Kenya, Korea, and Ghana have built skills and applied their technical disciplines, innovation capacity, and solutions to challenge and catalyse water solutions towards smart livable cities.

The contest was an initiative for young academics and entrepreneurs from across the world to come up with innovative solutions to water problems.

It produced a melting pot of workable ideas in tackling various water issues, including losses and treatments.

Ambassador Nørring said the contest was important because it’s one of Denmark’s focus sectors in its partnership with Ghana.

He further stated: “Innovation happens when we put our best minds together from all across the spectrum—companies, universities and the public sector—and let young minds work closely together with experienced practitioners.”

The Dean of the Faculty of Built Environment at the Kwame Nkrumah University of Science and Technology, Prof. Samuel Amos-Abanyie, commended the Ghanaian contestants for their effort in finding solutions to key water challenges facing the country and the Danish embassy for the collaboration.

Re-registration of SIM cards to begin soon -- Bawumia

T

he Vice President, Dr. Mahamudu Bawumia, has stated that the Minister for Communication and Digitalization will between June and July announce the reregistration of all SIM cards in use in Ghana as part of measures to help in the formalisation of the Ghanaian economy.

Speaking at the 5th CEO Summit in Accra, where he was guest of honour, the Vice President noted that the SIM registration exercise will also help in curbing the activities such as SIM box and Momo fraud.

According to him, mobile users will be given a six-month grace-period to re-register their SIM cards using their National ID (Ghana Card).

The government’s decision to formalise the Ghanaian economy has made it necessary for the

various identity cards to be brought under one umbrella.

The exercise is to add to the country’s central database with our unique IDs.

Dr. Mahamudu Bawumia

The process of registration can be done on one’s phone and does not require a visit to a Telco outlet. It can easily be done by dialing a dedicated USSD Code.

Furthermore, Ghanaians without the Ghana Card can obtain the cards from the NIA offices for free across the about 260 Districts from July.

6

WEDNESDAY MAY 19, 2021

7

International

WEDNESDAY MAY 19, 2021

Delays to debt treatment deal push Moody’s to downgrade Ethiopia

S

low progress on a debt treatment deal has led to Ethiopia’s credit rating being downgraded as private sector lenders look increasingly likely to lose money.

The government announced in February it intended to seek debt treatment under the G20’s ‘common framework’, designed to help indebted countries restructure what they owe.

Ratings agency Moody’s yesterday announced it was downgrading Ethiopia from B2 to Caa1, reflecting the uncertainty over what any restructuring deal could look like.

“The passage of time since Ethiopia’s application to the common framework suggests a relatively complex decision by the creditor committee,” the agency said in a note.

“Which in turn indicates that an outcome that does not impose any losses on private sector creditors is less likely than at the time of Moody’s previous rating action in March.”

Addis Ababa

Moody’s action follows both S&P Global and Fitch, which each downgraded their rating for Ethiopia in February following its announcement that it was seeking treatment.

The common framework scheme, which is open to 73 of the world’s poorest countries, was established in November 2020.

It encourages creditors to

change payment terms, and only allows debt relief “in the most difficult cases”.

Private creditors, which hold an increasing proportion of developing country debt, refused to participate in debt servicing suspension efforts set up at the beginning of the Covid-19 pandemic.

The G20 common framework

encourages them to participate in “fair burden sharing” and offer terms as generous as bilateral and multilateral lenders (ie. countries and development banks), but this is not mandatory.

Moody’s said it will keep Ethiopia’s rating in review, with the possibility of a further downgrade, as the creditor committee deliberates.

UK fears global minimum corporation tax deal could miss out digital tax solution

T

he UK is hesitant to support the US push for a 21% global minimum corporation tax rate over fears doing so would harm the chance of sorting out the issue of digital taxation, it has been reported.

Negotiations on the two issues are ongoing between 139 countries and the OECD, with the aim of reaching a consensus by the summer and a deal by the end of 2021.

Joe Biden supports a minimum corporation tax level, but the UK is dragging its feet, insisting a mechanism to specifically tax digital giants where they make their revenue be included in the deal, according to the Financial Times.

This position “lacks any credibility”, said Alex Cobham, chief executive of the Tax Justice Network, because of the difference in scale between the two issues.

“The [UK’s] digital services tax is forecast to raise £500m a year at most,” he said.

“The UK’s estimated revenue gains from a global minimum

UK chancellor Rishi Sunak.

corporate tax rate of 21% is more than 20 times as high: some £15bn a year.”

Chancellor Rishi Sunak introduced the DST in his budget one year ago, and has consistently said he will remove the tax once international consensus is reached.

Cobham said it adds “perhaps a few percentage points” to the tax paid by a very small group of multinationals, and misses some of the worst tax avoiders.

“A global minimum corporate

tax rate would ensure that all the biggest multinationals are required to pay at least 21% of their profits, regardless of how they try to shift them,” he said.

“The UK position simply does not hold water – they’re claiming that they want to make sure tech multinationals are properly taxed, while blocking the best opportunity for a generation to curb corporate tax abuse across the board.”

Director of business and international tax at the UK

Treasury Mike Williams has said the UK’s “core proposition” is that sorting out digital tax is in fact the more pressing issue.

“It’s not primarily about minimum tax [which] might help to ensure that businesses pay tax, but it matters as well where tax is paid,” he told an event hosted by the University of Oxford earlier this month.

Williams said it is “not politically acceptable” for big internet companies to pay tax in, for example, California, rather than allowing the tax to pay for public services where the revenue is made.

This was the issue that began the OECD work several years ago, amid fears that the lack of an international solution would lead to a confusing patchwork of unilateral DSTs. Biden’s administration, continuing the work of his predecessor Donald Trump, is drawing up retaliatory tariffs on imports from countries that have set up DSTs, claiming they discriminate against US businesses.

8

WEDNESDAY MAY 19, 2021

9

News

WEDNESDAY MAY 19, 2021

Research design should be guided by sound theory, variables and philosophy --Dr. Assibey Bonsu

By Emmanuel Kwarteng

L

ecturer in Communication Design at the Kwame Nkrumah University of Science and Technology (KNUST), Dr. Ginn Assibey Bonsu has advised researchers to allow sound theory and variables from philosophy to guide their research design and questions.

Delivering a keynote address at a virtual webinar organised by the Ghana Institute of Journalism (GIJ) on the theme, “Qualitative Data Processes and Analyses”, Dr. Assibey said, “every research philosophy which has got to do with ontology, epistemology, and ideology, there’re underpinning paradigms which governs what is seen as real.”

“And these research paradigms have got to do with how we discover, explain, develop and evaluate our research,” he said.

Dr. Ginn Assibey was of the view that research must be underpinned by a specific philosophy which then informs the purpose of the study and

how data will be collected and analysed.

He further touched on research design indicating that, “research design is the systematic approach for obtaining and analysing data.”

Dr Assibey also used what he called “research quadrant” to explain to attendees how to approach a research design.

On interview guide as a data gathering tool, Dr. Assibey urged researchers to be aware

of “member checking” exercise which offers respondents an opportunity to proofread a transcribed version of their interview to avoid modifications or adjustments.

“Member checking has got to do with ensuring that whatever has been written is right, and it is done by the interviewee,” said Dr. Assibey Bonsu.

Attendees were given the opportunity to either ask

Oil production fell by 6.3 percent in 2020

T

he production of crude oil fell by 6.3 per cent in 2020 from the 2019 volume, the first such drop in over three consecutive oil production increases, the 2020 Annual Management Report of the Public Interest and Accountability Committee (PIAC) has shown.

The report indicated that total gas production increased by 40 per cent, while the Sankofa Gye Nyame (SGN) field increased

its output by 60 per cent being the highest volume in both Associated and Non-Associated Gas. The 2020 PIAC Annual Report encompasses a high range of issues associated with management and utilisation of petroleum revenues, including crude production, revenue accrued, revenue received, liftings, allocation and utilisation of revenue by government and

management set aside in the Ghana Petroleum Funds (Ghana Stabilisation Fund (GSF) and Ghana Heritage Fund (GHF).

The report is a result of a continuous collaboration of PIAC and its stakeholders. It also contains other issues and finding pertinent to the performance of various institutions.

The report said the COVID-19 pandemic contributed to a general revenue decline,

questions or contribute to the event.

Director of the Directorate of Research, Innovation and Development (DRID) at GIJ, Dr. Etse Sikanku, on behalf of the Institute and attendees expressed their gratitude and sincere appreciation to Dr. Assibey Bonsu for his succinct presentation and hope to host him again on May 21, 2021 for another insightful encounter.

following a fall in crude oil prices at the local and the international market.

The report said Surface Rental payments remained in arrears of US$2.1 million in 2020 an increase over the 2019 arrears of US$1,566.463.12. Nonpayment of income denies the PHF the necessary funds for development projects.

According to the report, the Petroleum Revenue Management Act (PRMA) could not present the 2020 – 2022 priority areas selected for Annual Budget Funding Amount (ABFA) disbursement to Parliament for approval.

The recommendation for the Annual Budget Funding Amount (ABFA) should not be used to serve the purpose of filling expenditure gaps when there is a revenue shortfall in the Budget.

PIAC, therefore, recommended that the Ghana Revenue Authority should initiate action to recover surface Rental Arrears.

It also called on the Ministry of Finance to ensure that Priority Arrears are approved by Parliament before implementation as required by Section 21 (5) of the PRMA. GNA

10

WEDNESDAY MAY 19, 2021

11

Maritime, Trade and Logistics

WEDNESDAY MAY 19, 2021

Mandatory marine cargo insurance takes off by year-end

T

he National Insurance Commission (NIC) has revealed that full implementation of the Marine Cargo Insurance Protocol at the Ports of Ghana will take place before the end of the year 2021.

Interacting live with the public on the Eye on Port program, the Senior Manager at the Supervision Department of the National Insurance Commission, Mr. Charles Ansong Dankyi noted that the Cargo Insurance Protocol will make it mandatory for traders to purchase local insurance for their import and export cargo.

He encouraged traders in Ghana to purchase local insurance or risk delays during the enforcement of the marine cargo insurance protocol.

Mr. Dankyi said: “If you do not have local marine insurance you would be forced to take it.

And you can imagine the time and the amount of money and inconvenience that you would have to go through if you have not taken the local marine insurance.”

The newly developed Marine

Snr Manager, Supervision Dept. of NIC, Charles Ansong Dankyi.

Cargo Insurance Protocol is an MoU signed by the NIC, Ghana Revenue Authority (GRA) and the Ghana Shippers’ Authority (GSA) to ensure that goods imported into the Country are insured locally in line with Section 37(1c) of the Insurance Act 2006, (Act 724).

Statistics say currently, only 6% of the importing public in Ghana purchase marine insurance policies from local insurers.

He revealed that before goods are cleared at the ports, importers

will have to show evidence of the purchase of local marine insurance.

“There is a portal where we share a database with the Ghana Revenue Authority. Before you clear your goods, there should be evidence of local marine insurance certificate to confirm that you have taken the local insurance,” Mr. Dankyi disclosed.

The Senior Manager at the Supervision Department said, however, that the NIC and its partners have been focused on

sensitizing the trading public on the benefits of purchasing marine insurance covers locally.

He outlined some losses suffered by the shipping community in Ghana due to their failure to take insurance from Ghanaian insurance companies, adding that, this protocol offers the perfect remedy to the situation.

Mr. Charles Dankyi said in addition to the local insurance companies having the financial and technical capacity, traders would enjoy easier accessibility to claims, better ratings and no language barrier.

“We are rating even better than what pertains outside.

The essence of taking marine insurance is that one day when there is a claim, insurers could respond to this quickly. Insurers in Ghana have the capacity to. Even with the reinsurance arrangement that they have in place, they can respond to claims as they arise,” he elaborated.

Mr. Dankyi stated that the NIC will ensure that insurance companies abide by their contracts to pay claims without any delays.

Shippers urged to patronise local marine cover for their cargo

I

mporters and Exporters in Ghana are being encouraged to purchase marine insurance covers locally in order to get full guarantee on claims in the event cargoes suffer damages at any stage of the maritime trade.

Speaking on the Eye on Port program, Mrs. Mercy Naa Korshie Boampong, who is a member of the Technical Committee on Marine Insurance at the National Insurance Commission (NIC), emphasized that local insurance companies have the requisite capacity to insure the large chunk of cargoes coming through the maritime trade.

“We do not have issues with capacity when it comes to the financials. Technically, we have experts in that field. Traditionally, insurance companies departmentalize the various fields, and that applies to marine underwriting and claims. They have the expertise,” she asserted.

Mrs. Mercy Boampong lamented the passive attitude traders in Africa have concerning marine insurance which is regarded to be one of the oldest forms of insurance globally.

She entreated importers in Ghana to avoid ceding the

insurance components to suppliers overseas, because it may appear that they have guaranteed full cover on cargoes but in actual fact, it isn’t the reality.

“Even when you have bought the goods on CIF, you don’t have full cover. Internationally, the CIF only mandates the supplier to buy the minimum marine cover which is the institute cargo clause C. It doesn’t cover volcanic eruptions, earthquake, entry of sea/lake/river water into your goods, washing overboard. It doesn’t cover total loss following the loading or offloading,” Mrs. Boampong articulated.

The Technical Committee Member on Marine Insurance at the NIC encouraged traders to commit to purchasing insurance covers from local insurers to give them peace of mind and save themselves from the legal nuances that may elude them in the maritime trade.

“Even if it is on CIF, you do not know the insurer. There are issues of language barrier and inadequacy of the cover.

When you take local insurance, you are protected. It secures you. It is like disaster recovery plan. It guarantees the business

Technical Committee on Marine Insurance at NIC, Mercy Naa Korshie Boampong

continuity,” she continued.

Mrs. Boampong nonetheless praised the exporting community in Ghana for their patronage of marine insurance covers from Ghanaian insurance companies.

She also outlined many auxiliary benefit growths the local insurance industry will have on general economic development of the country, employment, growth in the banking sector which will trickle down to improve trade

financing.

Meanwhile, the National Insurance Commission (NIC) has revealed that full implementation of the Marine Cargo Insurance Protocol at the Ports of Ghana will take place before the end of the year 2021.

The Cargo Insurance Protocol will make it mandatory for traders to purchase local insurance for their import and export cargo.

12

WEDNESDAY MAY 19, 2021

13

Energy

WEDNESDAY MAY 19, 2021

Benefits you stand to gain from an MLM platform

Introduction Sometimes you wonder what are the benefits you stand to gain from partnering with an MLM business platform like Longrich.

Other times you hear many with bitter experiences and complaints about MLMs. Thus, you become discouraged whenever you encounter an MLM opportunity, even to use their products. This is because you meet or hear from people who have joined the wrong MLM platform/leadership team/ consultants. An authentic Product based MLM platform ensures that the following benefits are derived for all of its partners.

1. Good Health and Longevity: Good health simply means the absence of diseases, sicknesses or ailments from one’s body. It also means the ability to stay physically fit, mentally and emotionally stable. Longevity, which goes hand in hand with good health refers to remaining in good health for the longest period. One of the benefits of a good product based MLM business is the provision of quality products which ensures the good health and well-being of its consumers. In other words, the products sold/manufactured by authentic MLM Companies are of premium quality, health-wise.

Take for example the famous Longrich fluoride free toothpaste.

This toothpaste- unlike the usual toothpaste brands in the marketis explicitly made to battle all forms of dental problems. The toothpaste is made to battle; • Gum bleeding problems, tooth sensitivity, halitosis/bad breath, • Teeth whitening, • Gum strengthening and • all forms of dental care

needs.

Unlike the usual toothpastes which solve but a few of the above dental ailments, the Longrich toothpaste is fluoride-free (ie.

Does not contain fluoride). This is because, excess fluoride can cause acute fluoride poisoning which is very detrimental to human health. Thus, it rather is infused with birch and white tea essence, in place of the fluoride, which in accordance, performs the same and even better functions as the fluoride. The Longrich toothpaste is made with solely organic ingredients which are purposed to solve dental health problems and this is why it cannot be on the competitive shelves with the normal, usual toothpastes we have in the market.

Take another example, the Longrich Sanitary napkins (pad and panty liner). These sanitary towels are specially made with organic components and multiple plant-based bio-degradable layers which provide super absorbent qualities to females during their menstrual cycle.

Aside the components being organic, and bio degradable, its also infused with magnetic energy which aids in solving all forms of menstrual disorder; menstrual cramps, irregular or little flows, hormonal imbalance, blood clotting, vaginal infections, etc. and even fertility related problems like fibroid, uterine cancer, etc. Unlike the usual sanitary napkins in the market which are mainly for absorbing menstrual fluid and ensuring an easy, hygienic and comfortable flow, the Longrich pad also gives these typical benefits in addition to solving the problems mentioned above. More so, even men suffering from prostate cancer, gonorrhea and other

urinary tract infections can also use the panty liners to treat the problem-which the normal panty liners in the markets cannot fix.

Therefore, as a result, the Longrich toothpaste and the Longrich sanitary napkins turn out to be of premium quality and value, and hence attracts such prestige in its pricing. This scenario cuts across in all products or services rendered by authentic MLM Business platforms such as Longrich.

2. Opportunity to consume products at the manufacturer’s price: Another benefit you stand to gain from partnering with an MLM company is the opportunity to purchase products from any sales point, branch office or company joint, at the original manufacturers price (Unit Price).

In this way, you can say the consumer deals directly with the company, one way or the other with purchasing of products. This helps you the consumer to save a quantitative amount of profit which would have been charged upon the sales, if it was bought at a retail shop. Take for example; Jasmine partnered with Longrich as a consumer of her favorite product; the Toothpaste, which cured her toothache. Before she partnered, she used to buy this same toothpaste at a retail point, at a retail cost of 40.00ghs.

Now after partnering with the Company, she buys this same toothpaste for 28.00ghs, which is the original unit price the company sells it for, at any office or branch. This means that after partnering with the company as a registered consumer, Jasmine will forever buy the toothpaste for 28.00ghs. Imagine how

much money she saves yearly for partnering?

3. Residual Income: Let’s take another instance here. Remember Jasmine now buys her toothpaste for 28.00ghs instead of the 40.00ghs she used to buy it for. Now, Jasmine shares her testimony on the quality of the toothpaste and all the benefits she’s getting. Jasmine gets paid for inviting Tessy, who also has toothache. Tessy comes on board, partners as a consumer, buys the toothpaste for 28.00ghs instead of 40.00 from a normal retail shop and saves herself some money.

So, Jasmine, aside saving money from buying at unit cost, is also getting paid for referring Tessy to also come and be a consumer of the product. If Tessy refers someone to also come on board to consume the products, everyone in the chain of referrals gets paid, aside them all buying the products at the Company’s unit price. Thus, you save money, and you get money for being a partner with the company.

4. Investment Opportunity Some MLM companies like Longrich (a manufacturing Company which serves its consumers through the MLM platform for their consumer products), awards its partners the opportunity to become branch owners for the company. Herein the company offers you the license to own a local, regional or country branch at a cost, where the branch owner now becomes a sole distributer for the marketing of the Company’s products.

Aside this ‘investor’ partnership,

CONTINUED ON PAGE 15

14

WEDNESDAY MAY 19, 2021

15

Feature

WEDNESDAY MAY 19, 2021

Channelling the power of thought within business

By Louisa Afriyie Afrane Okese

I

t is said that we attract what we think, therefore we must invest in positive thinking. Our thoughts are like energies which we emit to the universe. That energy affects the environment and people around us. In business, management and leaders are tasked to drive success through their leadership.

The successful navigation of a business depends on the thoughts of leadership in relation to the goals and objectives of the business. Working in management positions, key decisions that require thorough thought processes are vital to keep any business functioning well.

When these decisions do not work out as planned, the quality of thought should be questioned and reviewed. Allowing thoughts and reflection gives decision-

makers a chance to understand when it’s time to make good changes within the business.

The power of thought shapes our reality. Everything we interact around us, is as a result of someone else’s thoughts, ideas, hopes or dreams. That is how powerful our thoughts can be. It also provides business clarity for professionals who hold key positions in different organisations.

Our creative thoughts shape the world around us, therefore we need to think about what we want and how to get it. Then, follow it up with step-by-step approach to reaching those goals.

On the other hand, unsuccessful people usually bicker and complain about what is going wrong. They mostly talk about what they do not want and how things are not working out for them. They usually have a negative outlook on life,

focusing all their energies on their problems and worries.

They have excuses to everything and reasons for not getting ahead of their issues. No successful business runs on such thought process.

Living without lucid objectives or aims is akin to walking in a dark room. You will only knock things over or get hurt from hitting yourself against furniture.

However, if you have clarity of thought about your goals in life and as a business, you will be in the best position to channel your energies and abilities towards achieving those goals. You will progress steadily, grow and get whatever you want out of life and for your business.

The important thing to note in setting goals, is to not compare yourself with anyone. Everyone’s circumstances are different therefore we cannot approach it like others do. We must

recognise this fact and approach our circumstances differently.

Add timelines to your goals so as to keep you motivated and dedicated to reaching your goals.

Break the goals down to activities you can do daily, that will contribute to turning the goals into reality. Do not be perturbed with any setbacks you may face. Life is full of hurdles, strive to overcome them. What should be important to you is progress as you work towards achieving your goals. No matter how small the progress is, it still counts as a step forward and that is a positive thing.

Benefits you stand to gain from an MLM platform CONTINUED FROM PAGE 13 the company also awards such investor, a percentage of its global sales which is about 6%-10% on a monthly basis on the point value associated with the products (PV).

5. Incentives Just as any company rewards its staff with awards and gifts for best performance, similarly MLM companies such as Longrich, awards its best performing business partners regularly with incentives such as trips, cars, houses, scholarships, sales bonuses and many more, as a means to motivate its cherished partners. There are incentive

trips, which are all-paid executive trips to countries like Dubai, USA, Singapore, Malaysia, Kenya, South Africa, etc. where partners are given executive relaxation treats to rejuvenate themselves over the period.

This trip incentive is awarded quarterly. There are also Car incentives (usually around the cost of usd10,000-usd30,000) awarded where qualifiers get to drive with convenience in the Company’s awarded car to encourage and motivate them in their businesses. There are also other exceptional bonuses like house funds, cash bonuses, free product promotions and many more where best performing partners get to benefit from.

Conclusion In conclusion, how well you benefit from an MLM platform depends on the kind of platform you partner with. This is why you need to do a thorough research on which platforms offer the basic opportunities as discussed above, in order to make your dream of making it big and becoming wealthy on the MLM platform become a reality. Just as the fact goes; ‘network marketing is the business for the future to come’, similarly, an authentic network marketing platform will help you realize your dream to financial freedom, faster than you ever imagined it to be. Partner with the right Network Marketing

Company and live your dream to its authenticity.

Author: Kennedy Amoako (Chartered Accountant & Longrich Multi-Regional Franchisee, Ghana)

16

WEDNESDAY MAY 19, 2021

17

Feature

WEDNESDAY MAY 19, 2021

‘Dumsor’: A potential threat to economic recovery

By Daniel Anim-Prempreh, CEOTurkey Ghana Business Chamber

P

ower is key and critical in driving industries as well as commercial activities in any economy, and therefore massive investments must be made in the energy sector to ensure real growth and economic development necessary to transform the Ghanaian economy.

This article is to explore and analyse the current state of the economy and the impact of any potential “Dumsor” amid the pandemic.

Economic performance before covid-19 pandemic Ghana’s economy was one of the fasters growing economies within Sub-Saharan Africa before the pandemic cropped up. At the time, Ghana was considered the fastest growing economy, recording 6.5 percent annual real GDP growth in 2019.

The global economy recorded a growth rate of 2.9 percent and sub-Saharan Africa recorded 3.1 percent growth for the fiscal year 2019. In fact, the World Bank in its 4th Edition of the Ghana Economic update in 2019, indicated that Ghana’s annual economic growth in 2017 was 8.1 percent and in 2018, it was 6.3 percent.

The report further indicated that, although 2018 growth (6.3%) was at a lower rate compared to 2017, yet it was described as a

growth on a strong path. With respect to the real sectors of the economy, the report stipulated that industry shows growth with 10.5 percent expansion, followed by agriculture with 4.8 percent, while services sector grew by only 2.8 percent in 2018. Inflation actually decreased from 19.2 percent in March 2016 to 9.4 percent in December 2018 and 9.5 percent in April, 2019.

Regarding inflation (key macro-economic indicator), data from the Bank of Ghana shows that headline inflation for the fiscal year 2019 was 7.9 percent and 10.4 percent in 2020. With respect to the performance of the real sectors of the economy, available data from the Ghana Statistical Service (GSS) as well as the Ministry of Finance shows that:  Agriculture Sector: according to the GSS, the agriculture sector grew by 4.6 percent in 2019 compared to a growth rate of 4.8 percent in 2018.  Industry Sector: data from the GSS indicates that the industry sector contributed 2.4 percentage points to the 2019 annual GDP growth rate, and its share of GDP

at basic prices increased by 0.2 percent to 34.2 percent in 2019, from 34.0 percent in 2018.  Services Sector: the services sector’s growth rate increased from 2.7 percent in 2018 to 7.6 percent.

From table 1, with particular reference to the fiscal year, 2019, the services sector recorded the highest growth rate of 7.6 percent, followed by the Industry sector with 6.4 percent growth and agriculture sector with 4.6 percent With respect to the above presentation, it is evidently clear that, before the pandemic, the macroeconomic indicators remained fairly strong, and indeed, the economy was actually on the path of creating the needed business environment capable of providing investments opportunities, jobs, and expansion in infrastructure, as well as execution of Government flagship programs.

Economy amid the pandemic The economy was quite doing well and promising sustained growth. Most of the

macroeconomic fundamentals was indeed showing signs of growth and possible propensity of creating opportunity for all citizens, until in March, 2020 when the COVID-19 pandemic cropped-up with its deadly axes distorted the macroeconomic fundamentals.

In fact, Government objective of stabilizing and growing the economy was crashed down. This was evidenced by 0.4 percent growth rate recorded for the fiscal year, 2020.

The development in the real sector growth was affected by the impact of the pandemic. The agriculture sector recorded 7.4 percent and the services sector growth was at 1.5 percent, while industry contracted by 3.6 percent in 2020, from a growth rate of 6.4 percent. This is certainly a cause of concern for the managers of the economy since the industry sector is the second-largest contributor to the economy and a very critical vehicle to stimulating economic growth.

Although services recorded a positive growth, the fall in growth rate from 7.6 percent in 2019 to 1.5 was

CONTINUED ON PAGE 19

18

WEDNESDAY MAY 19, 2021

19

WEDNESDAY MAY 19, 2021

CONTINUED FROM PAGE 17 quite significant. The sectorial analysis of the real sectors of the economy is presented in Table 2 below.

According to the 2021 budget statement, the drastic effect of the pandemic actually slowdown economic activity which eventually led to a huge drop in domestic revenue, coupled with a sharp and unplanned hike in COVID-related expenditure.

Indeed, the toxic effect of the pandemic led to;  Unexpected shortfall in government revenues, amounting to GHC 13.6 billion  Unexpected and unavoidable increase in governments, amounting to GHC 11.7 billion

for providing power are making technical changes and adjustments to the plant so that we could have reliable power at a competitive rate. If what we were told happened to be the fact, then, my advice is that, they must work assiduously to ensure the task is fully completely as per schedule so as to say good bye to the load shedding exercise currently on going.

Dumsor Economy:

Dumsor Economy: - Potential threat to the economy

For the purposes of this article, “Dumsor Economy” is defined as an economy with frequent intermittent supply of power thereby curtailing the full-scale production and provision of goods and services in an economy. The rational for this piece is not to dive into the debate as to whether the country is on the verge of “Dumsor” but rather to remind managers of the economy about the implications of “Dumsor” on the economic recovery agenda of Government. Power is key in driving the production capacity of the country hence there is the need to invest hugely into the energy sector in order to explore the full potentials of the Ghanaian economy.

It is fervent hope that the recent power outages are indeed, as a result of an investment into the energy. We were told that the technical team responsible

In an effort to revive the economy amid the pandemic, and return it to growth path, the government rolled out a number of policies and programs to achieve the recovery agenda. In fact, the 2021 Budget Statement and Economic Policy outlined key programs to be implemented so as to achieve the recovery agenda. Notable among them are:  Implementation of COVID-19 containment measures including vaccination  Economic revitalization and transformation through implementation of the CARES program whilst ensuring debt sustainability.  Consolidation and completion of existing projects to ensure value for money.  Creation of fiscal space for implementation of priority projects and programs.  Creating and sustaining

jobs.  Entrepreneurship and wealth creation.

It is my considered submission that without reliable power, the above key programs will amount to nothing. That is, it will not attain its intended purpose and as a result, the recovery agenda will not be realised thereby creating further hardship for the citizens.

According to the Institute of Energy Security (IES), gains made towards returning the economy to growth path are at risk of being eroded by recent power transmission challenges.

IES further indicated that, until the current power incidents recorded cease, the Ghanaian economy may struggle to come out of the recession caused by the pandemic and that the government must be guided by the events of 2014-2016.

It is refreshing to state that entrepreneurship and wealth creation demands that the citizens must establish businesses and equally important, start-up businesses must equally grow and expand production so that jobs could be created.

When jobs are created, the living standards of the citizens improves, and government revenue in the form of income tax and corporate tax also increases, the resultant effect is that, the over and ever reliance on external borrowing will reduce and the pressure of meeting repayment obligations as and when they

fall due will diminish and hence government will have the fiscal space to execute meaningful development projects. Power is seriously needed to support entrepreneurship and wealth creation and that is which managers of the economy must ensure that we do not experience “Dumsor”.

The potential threat of “Dumsor Economy include: 1. Possible reduction of the Overall Real GDP growth by 3%.

That is, the projected 5% GDP growth will not be achieved. It means, only 2% GDP growth will be attained at the end of the fiscal year 2021.

2. Contraction of the real sectors of the economy, more importantly, the industry and services sectors.

3. Low production capacity and high levels of unemployment.

Survey conducted by Ghana Statistical Service indicates that about 36% of operating firms had closed down during the partial lockdown, a Dumsor economy could further worsen the situation.

4. Possible increase in inflation. By 12%. That is, projected headline end-period inflation of 8.0% will be not be achieved.

Conclusion The government in the 2021 Budget Statement and Economic Policy sets out to achieve the following macroeconomic targets:  Overall Real GDP growth of 5.0%  Non-Oil Real GDP growth of 6.7%  Fiscal deficit of 9.5% of GDP  End-Period Inflation of 8.0% Am optimistic that, with hard work on the part of the managers of the economy, the above macroeconomic targets would be achieved, however, should there be what I described as Dumsor economy, then, achieving them will only be a mirage. It is my considered submission that the government should swiftly put in place mechanisms to avert Dumsor since its impact could be fatal to the socio-economy development of the country.

20

WEDNESDAY MAY 19, 2021

21

WEDNESDAY MAY 19, 2021

CONTINUED ON PAGE 22

CONTINUED ON PAGE 20 CONTINUED ON PAGE 20

22

WEDNESDAY MAY 19, 2021

CONTINUED FROM PAGE 21

CONTINUED ON PAGE 20 CONTINUED ON PAGE 20

23

WEDNESDAY MAY 19, 2021

WEEKLY MARKET REVIEW FOR WEEK ENDING MAY 14, 2021

CONTINUED ON PAGE 20 CONTINUED ON PAGE 24

24

WEDNESDAY MAY 19, 2021

CONTINUED FROM PAGE 23

WEEKLY MARKET REVIEW FOR WEEK ENDING MAY 14, 2021