Business24 Newspaper 22nd October, 2021

1

FRIDAY OCTOBER 22, 2021

BUSINESS24.COM.GH

Friday October 22, 2021

Gov’t explores use of pensions funds for mortgage

NO. B24 / 244 | News for Business Leaders

UMB formulates banking products to support BoG Sandbox Project

See page 5

See page 7

Stock Exchange courts stateowned firms to local bourse

By Eugene Davis ugendavis@gmail.com

D

eputy Managing Director of Ghana Stock Exchange, Abena Amoah, says government must consider listing thriving state owned businesses (SoEs) on the domestic capital market to attract the needed investments for growth and profitability.

According to her, the exchange has already identified some state businesses with strong financial prospects that could attract investors should they get listed on the local bourse.

Speaking to Business24 in an Cont’d on page 2

‘Security agencies must join forces to curb growing cyber security threats’

By Patrick Paintsil p_paintsil@hotmail.com

D

eputy National S e c u r i t y C o o rd i n a t o r, Edward Kwaku Asomani, has called for coordinated responses from state security, intelligence agencies and key actors within the nation’s justice delivery system to stem the surging threats to cyber security.

Cont’d on page 3

SIGA last year announced that it was pondering a move to list some SoEs on the stock exchange

Minority exposes govt’s GH¢2bn DACF debt

Cocoa Farmers’ Pension Scheme gets new board

By Eugene Davis

ugendavis@gmail.com

By Eugene Davis

T

ugendavis@gmail.com

he Minister of Employment and Labour Relations, Ignatius Baffour Awuah, has inaugurated the newly constituted board of the Cocoa Farmers Pension Scheme (CFPS), with a charge to the

T

he Minority National Democratic Congress (NDC) in Parliament says government has failed to make statutory payments into the District Assemblies Common Fund with an accumulated debt of over GH¢2bn between 2019 to

See page 5

Cont’d on page 3

Cont’d on page 2 Cont’d on page 2

2

Editorial / News

FRIDAY OCTOBER 22, 2021

Editorial

G

Time for concerted effort to bridge yawning housing gap

hana’s rapid urbanization amid a yawning housing deficit is a wake-up call to government to pay critical attention to one of its core economic or social demands.

Currently, the nation’s urban population stands at 58percent and it is expected to increase to over 70percent by 2050 with its housing deficit exceeding 2million housing units.

The country’s housing situation is burdensome but, at the same time, offers a unique opportunity as the development of housing has been used to capitalized economic development in many countries such as Singapore, Malaysia, South Korea and South Africa among others.

As in every economy, the development of housing in

an important instrument for economic development looking at the enormous impacts it has on employment generation both skilled and unskilled labor, and its contribution to manufacturing industry in the production of building materials and furnishing as well as the provision of both construction and mortgage financing.

There’s a currently a great disparity between housing cost and income level of people which raises the question of access and affordability.

This suggests the need for a deeper collaboration between government and the private sector to create the needed opportunities to make it possible for majority of our population to have access to descent,

safe, secure quality affordable housing.

Affordable housing can be defined as housing that’s reasonably adequate in standard and location for low to middle-income household, and according to the UN habitat, families who pay more than 30percent of their income for housing are considered costburden and may have difficulty affording necessities such as food, clothing, transportation and medical care.

Per this definition, we can say that government has a huge task ahead in terms of the provision of decent, safe and low-cost housing to the citizenry but a concerted approach will ensure the rapid realization of this dream.

Stock Exchange courts stateowned firms to local bourse 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: editor@business24.com.gh Newsroom: 030 296 5315 Advertising / Sales: +233 24 212 2742

interview, she said: “We have entered into a formal partnership with them; we are working with the State Interest and Governance Authority (SIGA) and government to identify those SoEs that are ready for investment to present to the market.”

“From our analysis, there are about 15 of them that we think that government could easily raise over GH¢2bn from them if it were to get them listed on the market and offload some shares,” she added.

According to the deputy GSE boss, it was better for SoEs to be listed on the market to raise capital instead of them resorting to borrowing, with government having to eventual sell some of them.

“This is one area that government can look at to raise capital. For some of them, with as little as 20percent sale, it could raise a significant amount of money,” she indicated.

Apart from sourcing money on the market from fund managers and individuals to fund their operations, the move will also enhance corporate governance

Abena Amoah - Deputy MD, Ghana Stock Exchange

in the listed state-owned enterprises, she added.

SIGA last year announced that it was pondering a move to list some SoEs on the stock exchange

and according to Mrs. Amoah, the doors of the market remain open to state businesses to come on board.

3

News

FRIDAY OCTOBER 22, 2021

Minority exposes govt’s GH¢2bn DACF debt Continued from cover date.

Giving a breakdown of the amount, they argued that government owes about GH¢700m for 2019, GH5¢87m for 2020 and GH¢884m for the first and second quarters of this year.

Deputy Ranking of the Local Government Committee of Parliament, Benjamin Kpodo, who disclosed this a press conference by the Minority Caucus on the Local Government Committee of Parliament on Thursday, said the situation accounts for the lack of effective development in the various metropolitans, municipals and districts across the country.

Mr. Kpodo said that the action by the Ministry of Finance contravenes provisions of the 1992 Constitution which created the DACF, alleging instances of suspected misapplication of the funds.

The Minority members

Naa Torshie Addo, Common Fund Administrator

contended that the feet-dragging attitude of the Ministry of Finance on the release of the quarterly

instalment funds due the District Assemblies Common Fund (DACF) to carry out its mandate is

worrisome.

They argued that the consequence of such reluctance was preventing the fund to release money to the 261 metropolitan, municipal and district Assemblies (MMDAs) for one complete year of their operations.

They, therefore, have called on the government to determine the money due to the Common Fund within a maximum of one month after the end of each quarter and ensure timely release of same to the fund.

"If the government does not heed our call, we serve notice that we will head to court again very soon," they warned.

Per the Auditors General's report, the Ministry of Finance is heavily indebted to the DACF to the tune of GH¢2bn from 2019 to 2021. The amount is made of GH¢700m in 2019, GH¢587m in 2020, and GH¢884m which is estimates for only first and second quarters of 2021.

‘Security agencies must join forces to curb growing cyber security threats’ Continued from cover “The growing threats to cybersecurity, the world over, requires the institution of innovative and robust systems to safeguard the security of this country,” he said at a workshop of the National Security Council Technical Working Group (NSCTWG) on the Cybersecurity Act, 2020, in Accra.

“Combating crime requires a coordinated approach; per the new [Cybersecurity] Act, three levels are required—between state actors; between public and private sector actors; and between state and international actors,” he added.

Mr. Asomani said that some aspects the Act, specifically those relating to critical information infrastructure, interception of traffic data and on blocking, filtering and illegal content takedowns, demand the cooperation of relevant agencies in addressing both internal and

external threats to cybersecurity, amid growing threats of terrorism from the sub-region.

To this end, Mr. Asomani indicated the commitment of the National Security Ministry to supporting the new Cyber Security Authority to effectively safeguard the interest of Ghanaians.

“More training and capacity building programmes targeted at enhancing understanding of cyberlaw, cybercrime and cyber security, would be organised in the coming months,” he added.

According to him, the twoday workshop on the theme “New Tools for the Security, Intelligence and Justice Sector”, was timely for discussions aimed at understanding prevailing challenges to national security and proffering solutions to curtail the menace.

The workshop for the security, intelligence and justice sector was organised by the National Security in collaboration with

the Cyber Security Authority as part of activities to mark this year’s Cyber Security Awareness Month.

Director, Legal for the National Security and National Coordinator for the Security Governance Initiative (SGI), Lawyer Osei Bonsu Dickson, told journalists that the workshop was to get participants well-informed about combating cybercrime, understand the international obligations implicated in the

[Cyber Security] Act and the need for internal cohesion and cooperation in matters of cyber security in Ghana.

“The new Cyber Security Act offers legal tools, but it also offers a barrage of technical and operational tools. So, this training looked at these particular tools and how they enable cyber deterrence and cyber defense, as well as prosecution and investigations,” he indicated.

4

FRIDAY OCTOBER 22, 2021

5

News

FRIDAY OCTOBER 22, 2021

Gov’t explores use of pensions funds for mortgage

T

he government is exploring the possibility of prospective home buyers using their Tier Two and Tier Three pension funds as initial deposit to support their mortgage plans.

The Minister of Works and Housing, Mr. Francis AsensoBoakye, who made this known, observed that the quest to provide access to housing for Ghanaians, especially low-to-middle income earners, required sustainable policies and programmes aimed at ensuring that the issue of affordable housing no longer became a myth but a possibility.

At the maiden Business24 Real Estate Conference in Accra on Tuesday, the minister said despite the economic impact associated with the housing sector, successive governments had not been able to provide housing that met the needs and financial capacities of majority of Ghanaians, meaning people required some level of support to access housing.

The conference brought together key industry players, professionals and experts to engage in discussions that sought to match the various challenges of affordable housing development

to workable solutions.

Mr. Asenso-Boakye noted that there was great disparity between housing cost and income levels of people, and that it raised the question of access and affordability.

The minister, therefore, stressed the need for a deeper collaboration between the government and the private sector to create the needed opportunities to make it possible for majority of the citizenry to have access to decent, safe, secure, quality and affordable housing.

“The government’s new affordable housing programme will involve an appropriate mix

of public and private sector investments to meet the financial capacity of the average Ghanaian, as well as our urban population, to access safe and secured affordable housing,” he added.

On the need to meet the needs and financial capacity of lowto-middle income earners, the minister indicated plans by the ministry to collaborate with appropriate authorities to scale up the National Housing and Mortgage Fund that was piloted in 2020 to stimulate the demandside of the housing market and create more access to affordable housing.

The National Housing and Mortgage Finance Scheme was

established to provide extensive construction of residential housing across the country to promote social equity and stimulate the economy.

The scheme was also intended to ensure that low to middle income earners have access to mortgages to buy homes, as well as to address the high cost of financing for the construction of residential homes for a large segment of the public.

The minister further appealed to stakeholders in the housing sector to embrace the government’s affordable housing framework and to partner with banks and other financial institutions to invest more to wipe out the prevalent housing deficit, adding that “it is only through this that we can reach out to majority of our citizens and positively affect the lives of the larger population”.

Mr. Asenso-Boakye also disclosed that the government was working on a framework that would absorb the cost of land and infrastructural services in the provision of decent, secured, quality and affordable accommodation for private developers.

Cocoa Farmers’ Pension Scheme gets new board Continued from cover new leadership to exercise independence in the discharge of its functions.

“After the birth of the board, Cocobod’s responsibility ends, everything will be decided by the board of trustees, I would not want to see Cocobod using the long hand to twist things there, you should be independent,” he said in his remarks at the ceremony.

He also appealed to the board to perform their duties in the best interest of cocoa farmers who have reposed their trust and confidence in them.

The Cocoa Farmers Pension Scheme has been designed to ride on the back of the Cocoa Management System (CMS).

It is a regulated scheme sponsored by the Ghana Cocoa Board and government for the sole benefit of registered cocoa farmers and their beneficiaries, with compulsory registration for all cocoa growers in the country.

The board, among others things, according to the minister will be responsible for developing

and maintaining effective corporate governance system and internal controls for the scheme.

Per the legislation establishing the scheme, every registered cocoa farmer is required to make mandatory contribution of 5percent of his or her produce while Cocobod pays a minimum top-up contribution of 1percent of the farmer’s produce.

The board will be expected to foster and facilitate open and constructive relationship with cocoa farmers to further understand their views.

Daniel Aidoo Mensah, chairman of the board, commended Cocobod and government for giving the members the unique opportunity to serve.

He also indicated that the scheme will provide long term funds to meet the retirement needs of current and future farmers, including short term financial assistance for the productive purposes such as payment of school fees, other short term needs that may be determined by the board.

Dr. Owusu Afriyie Akoto, Minister of Food and Agriculture,

Employment and Labour Relations Minister, Ignatius Baffour Awuah

disclosed that pension scheme will be run concurrently with the cocoa management System (CMS), which is already progressing steadily.

“I believe these twin projects, when completed will give the industry a significant facelift and make it attractive to the youth. We are counting on the rich expertise of the Board of Trustees to make the Scheme achieve its planned purpose. With unity of purpose, commitment, determination, we will record laurels at each stage of the implementation process,” he said.

Dr. Afriyie Akoto added: “Let us put aside parochial interest and cooperate with each other in

the interest of the Scheme and by extension, Ghana’s cocoa sector that has over the years, supported the nation’s path to economic development.”

The 11-member board is chaired by Daniel Aidoo Mensah.

Members include David Appiah Ofori, Samuel Danquah Arkhurst, Peter Osei-Amoako, Vincent Okyere Akomeah, Alfred Ofori Annye and Charles Gyamfi.

The rest are Leticia Yankey, Joyce Dapaah, and Charles Korankye Donkor. The last person to complete the membership of the board is expected to be nominated and sworn in by the Minister at a later date.

6

FRIDAY OCTOBER 22, 2021

7

News

FRIDAY OCTOBER 22, 2021

UMB formulates banking products to support BoG Sandbox Project

U

niversal Merchant Bank (UMB), a leading indigenous Ghanaian bank, has announced its intention to develop specific banking products for start-up fintechs in the Bank of Ghana Sandbox Project.

The bank announced its plans through its CEO, Nana Dwemoh Benneh, during the 2021 edition of the Ghana Economic Forum, held in Accra.

Nana Benneh was speaking on a panel discussion themed ‘Contemporary approaches to financing start-ups’.

The Bank of Ghana in February 2021 announced that it was establishing a sandbox to facilitate innovation with a view of promoting Fintechs. According to the BoG, a Sandbox is a supportive and controlled policy environment that enables firms to test innovative products, services and business models under the supervision of a Regulator.

Effectively, the regulatory and innovation sandbox will provide a forum for financial sector innovators to interact with the sector regulator to test digital financial service innovations while evolving an enabling regulatory environment. In this regard,

the Bank and the innovator can assess the usefulness, viability and safety of innovations through a shared understanding of their respective interests”.

“UMB’s analyses supports the view that one of the most viable start-up ecosystems for the Ghanaian economy is in the technology / fintech arena; “said Nana Benneh. The evidence from markets like Nigeria where startups like OPAY and Flutterwave

have raised over $200million in less than 4 years buttresses the point.

In this regard we think the Bank of Ghana’s Sandbox strategy is a game-changer and will incubate the ‘unicorns’ like Tik-Tok which will drive growth in this market.”

Answering follow -up questions on this point from the moderator of the panel, Madam Shika Acolatse, Nana Benneh further noted “our intention is to be able

to provide 360-degree support for these ventures. So, this includes both liabilities and assets support as well as a certain level of advisory support to access venture capital and international startup funds. We are happy to do this as a larger multi-bank policy initiative, but our mediumterm strategy is clear, and we are focused on being the Bank for digital Ghana.’

Sod cut for ultramodern Nana Akuoko Sarpong Sports Complex in Agogo

S

od has been cut for the commencement of the construction of the Nana Akuoko Sarpong Sports Complex, an ultramodern sports facility in Agogo, the capital of AsanteAkyem North Municipality.

The project, when completed, will host a soccer field, sports tourism and recreational centre, accommodation facilities for players and coaches, a school, and technical skills education for players who do not succeed in their football career due to nonperformance or injury.

The second phase of the project will include the construction of the sports clinic which comprises of hotels, swimming pool, physio centre, gym, volley ball, tennis courts, and table tennis boards.

The project is led and facilitated

by Nana Bediako Brogya Sarpong, Dompiahene of Agogo Traditional Area, an alumnus of Prempeh College and University of Ghana,

in partnership with Mr. Eric Oppong Yeboah, an investor and Chief Executive Director of Superbets Ghana Limited.

“This facility offers a platform to harness the sporting talents of especially young people within the Agogo traditional area and beyond the immediate catchment communities,” Nana Bediako Brogya Sarpong, said of the sports complex.

He also indicated that a special quota will be reserved for the traditional authority to

offer scholarships/admission for deserving youth into the academy to be based solely on sporting merit.

Nana Bediako Brogya Sarpong is very passionate about football and once played in his childhood days with the likes of Sulley Ali Muntari, Kwame Pele etc. and was a key player in Absa’s soccer team during his working days at the bank and was nominated to lead the bank’s 5-Aside gala competition in the UK. His partner for the project,

Mr. Yeboah is also the president of Pacific Football Ghana Ltd., a sports kits, marketing, merchandise and events management company which kitted Accra Hearts of Oak and Kumasi Asante Kotoko in 2017/2018 and 2018/2019 football seasons.

He is currently the President and Director of Ghana football Division one league campaigners.

Mr. Yeboah is an alumnus of Prempeh college, a former Chief Vandal of the Commonwealth Hall of University of Ghana, has double Master of Arts Degrees in Theology and Ministry and currently studying for his Bachelor of Law degree.

The Nana Akuoko Sarpong Sports Complex shall also be used to host national and international competitions and shall also be the home grounds for the town-based Pacific Heroes Football Club.

8

News

FRIDAY OCTOBER 22, 2021

Republic Bank launches ‘Blue portal’ campaign: step into success

R

epublic Bank (Ghana) PLC, a subsidiary of Republic Financial Holdings Limited has launched the ‘Blue Portal’ Campaign: Step into Success.

This is to help individuals and businesses secure endless financial growth from the Bank’s range of fantastic products and new platforms.

The campaign presents Republic Bank’s refreshed brand and provides a new conduit for Individuals, SME’s, Corporate Customers and all to Step into Success.

Speaking on the objective, the Managing Director of Republic Bank, Farid Antar traced the ideology of the campaign from the successful rebranding exercise in 2018 through to the strategic direction of the Bank to build a Responsible, Resilient and Relevant financial partner for Customers and the General Public.

According to him, the Bank has been full of activities for the last three years retooling. “We have given many of our banking halls major facelifts including the ongoing construction of Republic Courts situated at the prestigious Ridge roundabout enclave.

“We dream to move on and up and to have a life that meets our visions and aspirations. Republic Bank has also massively invested and improved on the technology and electronic payment systems including an improved Mobile App and Credit Card which will be unveiled as part of the Blue Portal campaign.”

“The Bank has improved upon its information security systems and now certified by ISO/IEC and PCIDSS. Last year introduced its Seven Service Elements and has invested in building the capacity of Staff to deliver superior service to ensure that stepping into any

Republic Bank portal, is stepping into true success either from the Bank’s digital platforms or at any branch nationwide” he added.

Mr Antar also added that last year, during the upsurge of the COVID-19 pandemic, Republic Bank made a promise to its customers to weather the storms with them. The Bank became the first to announce a loan moratorium and other interventions for Customers.

The Bank also supported various health centres in the fight by donating a cumulative sum of ¢1.2 million.

“We have weathered the storm

and we are now ready to step into success with our customers and the general public,” he added.

Republic Bank recently announced two of its innovative products – the two new mortgage repayment plans to save customers and prospects up to 40% of their mortgage interest cost, and thus allowing them make an early repayment, Mr Antar said.

“We want to be the financial partner of choice for our customers and the general public. We are firmly positioned to facilitate the dreams and aspirations of all cherished and prospective customers to help them rise to the next level.

We are the Bank that cares and focuses on success and not just the output. We have put in place all the necessary measures, technologies, human resources and are backed by the super strength of our parent company, Republic Financial Holdings Limited.

“We are ready to ‘Step into Success’ with you with this launch. We ask all our customers and prospects to watch out, and make a date with ‘The Blue Portal’. Be ready to Step into Success,” he said.

ECOWAS female parliamentarians pay courtesy call on Rebecca Akufo-Addo

M

embers of the female Caucus of the ECOWAS Parliament (ECOFEPA) have paid a courtesy call on the First Lady, Mrs Rebecca AkufoAddo, to discuss matters related to women’s empowerment and representation in all aspects of national development across the West African Region.

Welcoming the delegation to her office in Accra , Mrs. Akufo-

Addo said she was elated that a female political group made up of Members of Parliament spanning the whole sub-region, have taken it upon themselves to work at empowering women, protecting the girl child and ensuring that women representation at the upper echelon of political authority is increased.

She said the Rebecca Foundation has since its

establishment in 2017 engaged in several activities which are in tandem with the objectives of ECOFEPA. “Just like ECOFEPA which is keen on securing the future of the girl-child by helping her access quality education, the Rebecca Foundation also has a mentorship programme geared at encouraging girls to stay in and complete their schooling while also encouraging

and empowering those out of school to acquire some skills to be economically self-sufficient.”

The First Lady, assured members of ECOFEPA of the continued support of the Rebecca Foundation to achieve their common goal of empowering women and girls, stating that with the two bodies sharing a common objective and their influence stretching to all corners in the sub-region, working together will definitely lead to the desired impact they all seek.

On behalf of her colleague parliamentarians, the President of ECOFEPA, Filomena de Fatima Ribeiro, expressed their gratitude to Mrs. Akufo-Addo for her cordial reception and said ECOFEPA recognises the good works of the Rebecca Foundation since its inception and the many successes it has chalked in supporting women and the girlchild in the areas of education, skills acquisition, economic empowerment and maternal health.

9

News

FRIDAY OCTOBER 22, 2021

ADB disburses GH¢100 million to 17 companies to promote 1D1F

T

he Agricultural Development Bank (ADB) has so far disbursed in excess of over a GH¢ 100 million to 17 companies under the ‘One District One Factory’ (1D1F) initiative in the areas of agroprocessing, aquaculture and poultry.

“As a bank, with the focus on agribusiness, we will continue to fund 1D1F initiative, mainly through the out-grower schemes to help industries to operate at full capacities and create more jobs.”

Daasebre Akuamoah Agyapong II, the ADB Board Chairman and the Omanhene of the Kwahu Traditional Area disclosed this during a working visit to the Ekumfi Fruits and Juice Factory in the Central Region.

“The visit by the new Board of Directors is part of our commitment to get firsthand information on how loans disbursed to companies are being used and to further strengthen our relations with the cherished customers.”

He said through the Farm Direct Limited of the bank the Ekumfi Juice Factory, has had constant supply of raw materials to produce healthy Ekujuice and created 1,000 jobs within its catchment area.

“I wish to state that Farm Direct Limited is of unique interest due to our out-grower scheme project funded by the bank to support Ekumfi Juice Factory,” Daasebre Akuamoah Agyapong

stated, adding that; “We have identified the out-grower scheme as a reliable way of supporting our industries with raw materials under the government’s 1D1F.” He said the out-grower scheme also helped to create jobs in the local communities to curb the rural/urban migration menace.

The Board Chairman expressed gratitude to the previous board, especially for supporting the scheme and the Farm Direct for applying the funds for the purposes that it was intended for, saying; “We have seen what they are doing over here and we are happy that the funds have not been misused.

The Managing Director of the Bank Dr. John Kofi Mensah in a brief remark commended the Company for the judicious use of funds which had led to the cultivation of about One Thousand arces of land for pineapple production to feed the factor.

He disclosed that the Bank has

also funded the purchase of ten tractors, two two bulldozers , two delivery trucks and a trailer to further assist the company in their operations.

Dr. Kofi Mensah urged Ghanaians to patronize the products of the company and also advised the company to meet local demand before thinking of export.

Mr Frederick Kobbyna Acquaah, the Director of Operations of the Ekumfi Fruits and Juices Limited in a welcoming address expressed gratitude to the ADB for channeling funds through the Farm Direct Limited to support farming in the enclave to grow fruits and supply the raw material needs to the factory in a sustainable way.

He said the bank’s support had helped the factory to process 200,000 fruits per day and that would let Ghanaians see the Ekumfi juice on all shelves, homes and outside the country.

“Pineapple is our base, but

pineapple alone is boring. Our pineapple plus ginger received a lot of commendations. Our vision in itself appears in our name, the company name Ekumfi Fruits and Juices Limited. So what it means is that we deal with fruits generally and we are doing the mixes.

What we have here is multifruit processors. Ekumfi have been associated with quality and that is what we want to maintain and hold,” the Operations Officer said.

Mr Acquaah said the company would like to have a long hall relations with the ADB to venture into the production of variety of fruit juices, and that the capacity of the factory was 10 tons per hour, for a shift.

“Mr Chairman, supporting Ekumfi Fruits and Juices Limited has helped create jobs in the area and an expansion of this means expansion of job creation and all of this is giving meaning to the slogan of the ADB ‘Truly Agric and More.’”

Management of GITFIC visits Dr. Bawumia

A

s part of their consultative meetings to find-tune their arrangements for subregional dialogues, management of Ghana International Trade and Finance conference (GITFIC)

have called on Vice President Dr Bawumia in Accra.

The meeting also helped them to share with him firsthand information on upcoming sub-regional Breakfast Dialogue

Meetings within the sub-region and one Southern African country.

Mr. Selassi Koffi Ackom, Chief Executive Officer of GITFIC, on Wednesday said all ground

preparations were set, done and completed for the miniconferences.

He said the finance minister has also approved for his Deputy Minister, Dr. John A. Kumah, to travel with them to articulate government's position on various subjects of importance and relevance to the success of the AfCFTA and on finance.

He said they later held a meeting with the deputy minister to discuss dates to fit into his itinerary for the rest of the year.

Mr. Ackom commended Vice President Bawumia and the Minister of Finance for their attention and pledged to work closely with them to achieve their goals.

10

News

FRIDAY OCTOBER 22, 2021

Akufo-Addo commissions Ghana’s largest bulk electricity supply point in Pokuase

P

resident Nana Addo Dankwa Akufo-Addo has commissioned the Pokuase Bulk Supply Point, a 330/34.5 kilo-volt substation designed to improve the supply and distribution of electricity for consumers in the northern areas of Accra.

Funded by the Millennium Challenge Corporation (MCC) to the tune of US$47 million, the supply point, according to the President, is testimony to government’s commitment to improving electricity supply in the country.

Commissioning the project on Wednesday, the President stated that the Pokuase Bulk Supply Point, whose construction commenced in February 2019, “is also the fourth Bulk Supply Point in Accra, it is the first three hundred and thirty kilo-volt (330kV) Bulk Supply Point in the capital, and it is the most technologically advanced substation in Ghana”.

Siting of the BSP in Pokuase, he explained, was informed by the rapidly increasing load demand for electricity from this part of Accra, as Pokuase and its environs have become load points for power demand, hence being strategically positioned for

the presence of such a critical power infrastructure.

“The essence of constructing the sub-station is to improve power supply quality and reliability to some three hundred and fifty thousand (350,000) existing customers of the Electricity Company of Ghana (ECG) in Pokuase, Kwabenya, Legon, Nsawam and neighbouring communities,” he said.

President Akufo-Addo continued, “It is also planned to reduce significantly technical losses in the Ghana Grid Company’s (GRIDCo) transmission system and the ECG power distribution system, ultimately contributing to improving their financial viability.”

Beyond the Pokuase Bulk Supply Point, the President stated that Government is carrying

out several other initiatives and projects to ensure that the country is able to meet its increasing power needs, arising out of the country’s growing population and Government’s industrial agenda, through initiatives such as the One-District-One-Factory policy, amongst others.

Besides the Pokuase substation, which was commissioned, work is also ongoing on the Kasoa Bulk Supply Point, which will be the second largest bulk supply point in Ghana.

Once completed, he indicated that the project will address low voltage and frequent power outage challenges caused by increasing domestic and industrial demand in Kasoa, Senya Beraku, Bawjiase and Nyanyanu.

“The fifty-million-dollar (US$50 million) BSP project ,

again, funded by the Millennium Challenge Corporation under the Ghana Power Compact Programme, will benefit some two hundred and forty-one thousand, five hundred and eight (241,508) ECG customers, and contribute to substantial reduction in transmission losses in GRIDCo’s transmission system.

The Kasoa project is expected to be completed before the end of this year,” the President added.

Further, he told the gathering that the national transmission backbone, under construction from the coast to Bolgatanga, had a gap between Kumasi and Kintampo, which has since been completed a few weeks ago.

“Completion of this portion of the Kumasi/Bolgatanga transmission line project will ease the load on Kumasi sub-stations, and become the instrument of power transmission within the Ashanti, Ahafo, Bono and Bono East Regions, and in parts of northern Ghana. In addition to this is the ongoing Tema to Accra transmission line upgrade project to accommodate an increase from one hundred and sixty-one kilovolts (161KV) capacity to three hundred and thirty kilo-volts (330KV) capacity,” he added.

Glovo plans to invest €3.5m on expansion in Ghana by 2022

By Ibrahim Mashud & Phina Dziso

G

lovo, one of the world’s leading players in delivery services, says it will invest about €3.5 million on expansion in Ghana by 2022.

An English entrepreneur and co-founder of the delivery app Glovo, Sacha Michaud, mentioned this at a press conference in Accra.

The versatile delivery player entered into Africa in 2018 and is now present in four countries on the continent.

Now, the leading global ondemand delivery player is working around the clock to support the continent’s growth by harnessing local knowledge to bring new ideas and creative solutions that can address some of Africa’s endemic challenges for citizens, businesses, government among other industry players.

“Currently, the app has the widest coverage in Accra compared to competitors and other industry players in the

space and we expect to extend our services to other parts of the country like Kumasi and others with an investment of €3.5 million next year.”

Sacha Michaud while addressing the press bemoaned that there are some technological challenges that stampede some of the African markets in terms of growth such as no street addresses or incomplete mapping, poor transport infrastructure, inconsistent connectivity, cash payment system and less online shoppers.

He further explained that, according to McKinsey Global Institute, it is estimated that over the last few years there were at least 21 million online shoppers in Africa, less than 2 percent of the world’s total with three countries, thus, Nigeria, South Africa and Kenya accounting for almost half.

Nevertheless, the number of African online shoppers has surged annually by 18 percent since 2014, faster than the world’s average growth rate of 12 percent.

“Demand for world-class online shopping opportunities is growing exponentially in Africa’s leading economies, as urbanisation and incomes continue to rise,” he added.

Sacha Michaud highlighted that “we are behind our competitors in having an African product and we haven’t completely developed what we need to in terms of the product and therefore a lot of work still need to be done with regards to hiring local talents that understand the challenges of the markets.

African markets require a unique approach and a certain re-imaging of the way the product serves its users.”

We are implementing workarounds to the technological issues while we address these challenges and create solutions, he noted.

Glovo is proving opportunities for Glovers, small businesses and entrepreneurs which has huge impact on the brewing unemployment situation in

Ghana.

For more context, there have been government efforts at varying levels to ban commercial motorcycles in the city because they tend to be nuisance. Glovo is turning it into productivity, jobs, and usefulness.

Glovo is providing avenue for motorbike microentrepreneurs to legitimize using their motorcycles as a form of making income as motorbike taxes are illegal.

The company accepts multiple payment methods including cash, card, mobile money and the likes and has over 400 partners in Accra such as Burger King, local food chains like Papa’s Pizza, Cheezy Pizza among others.

11

Feature

FRIDAY OCTOBER 22, 2021

How innovation in plastic management will advance Africa’s efforts in realising sustainable development goals

By Oliver Nudds, Managing Director, Ocean Plastic Technologies

C

urrent waste management practices in Africa are causing major economic, social and environmental impacts.

The rise in plastic consumption combined with weak waste collection infrastructure is resulting in increased marine plastic litter, which is negatively impacting coastal economies.

Poor dumping, disposal and burning of waste is causing greenhouse gases to escalate, which is polluting both ground and surface water. It is also increasing the risk of diseases and causing air pollution, ultimately affecting human health.

The average waste collection rate in Africa is approximately 55% of all the existing waste materials. More than 90% of Africa’s waste is disposed of at uncontrolled dumpsites and landfills, often followed by open burning. Most importantly, 19 of the world’s 50 biggest dumpsites are found in Africa and are predominantly located in SubSaharan Africa. An average of approximately 13% of municipal solid waste generated in Africa is plastic, and 57% constitute organic waste [1].

There is a significant risk associated with the current waste management systems and practices on the continent.

However, with this risk there are lucrative economic and social opportunities that can help solve these issues.

TakaTaka, a Kenyan company, has actively managed waste collection, sorting, composting, plastic recycling and purchasing waste from waste materials pickers. Consequently, this waste management project has enabled affordable waste collection services to low-income areas by augmenting the recycling system to approximately 90% of all collected waste material.

This project has also led to job creation for women and young people. Furthermore, the waste material project has reduced Kenya’s gas emission effluents, which has resulted in a cleaner and healthier environment in Kenya [2].

The Ethiopian government has transformed the Koshe dumpsite into a waste-to-energy plant. This has effectively transformed, repurposed, and revolutionised the dumpsite into incinerating

approximately 1,400 tonnes of waste materials daily towards generating electricity.

This has resulted in approximately 80% of Addis Ababa’s rubbish being repurposed towards energy supply, with the city supplementing approximately 30% of household electricity [3].

Elsewhere on the continent waste disposal and management companies in South Africa have invested in new technologies that can efficiently manage waste collection.

These companies leverage user-friendly smartphone applications to facilitate prompt service, extra pickups, and bill payment through push notifications. This new technology has effectively enhanced cost-effective waste collection costs by simplifying the waste material collection processes [4].

There are many success stories in Africa and outside the continent where companies have generated innovative plastic management solutions, leading to a change in how industries are viewing the long term viability of sustainable business. Some companies are producing apparel

from plastic shopping bags, repurposing beach plastic into kitchenware, producing edible seaweed straws instead of plastic straws, recycling plastic waste and using it in the construction of shelters and repurposing old fishing nets into games and sports equipment. There is increasing interest in “inclusive innovation”.

New goods and services are developed for and/or by those who have been excluded from the development mainstream; particularly the billions living on the lowest of incomes.

These innovations in waste management for Africa and globally are meeting many of the United Nations Sustainable Development Goals by minimising greenhouse gas emissions which are helping to alleviate the climate crisis, conserving oceans and land to preserve marine and wildlife, and ensuring healthy lives and promoting well-being. Additional benefits from innovations in plastic waste management are energy conservation, reduced petroleum use and reduced landfill use.

Despite the great strides

made by many companies in Sub-Saharan Africa in providing plastic management solutions, there is still a significant need to minimise reliance on plastic, develop new ways of managing plastic waste, and/or develop new uses for plastic that has been discarded.

There is a call to action to bring waste under control by providing access to proper waste management services and unlocking the socio-economic opportunities of waste as a resource, by moving away from disposal towards waste prevention, reuse, recycling and recovery.

With growing risks of inadequate plastic waste management, innovators, startups and established companies in Sub-Saharan Africa have a huge opportunity to launch new and inclusive ideas to respond to plastic and waste management issues through seeking gaps in the innovation landscape which can make a positive difference in both the environment and communities.

12

News

FRIDAY OCTOBER 22, 2021

‘Fuel increments introduce significant cost burden on the average Ghanaian’

T

he Africa Centre for Energy Policy (ACEP) Wednesday said the prices of a litre of petroleum products have increased by about 33 per cent this year.

The centre said these increments introduced significant cost burden on the productive sector and the average Ghanaian.

Mr. Benjamin Boakye, the Executive Director of ACEP, said addressing that would require pragmatic interventions from the Government, which goes beyond the Price Stabilisation Recovery Levy (PSRL).

Prices of petrol and diesel have increased in the second pricing window from October 16, 2021 and are selling at GH6.80p at the various pumps.

With the situation persisting, government has removed the PSRL component of the fuel prices for two months, but this is yet to take effect at the pump as many Ghanaians continue to lament the effects of the increase on their pockets.

He said the situation called for a holistic review of the downstream price mechanics through the dual regulatory spectrums on taxes and levies from the government.

He said for the ordinary consumer of petroleum products,

any reduction in prices should be welcomed, however, the decision to zero the Levy for the next two months called into question the efficiency of the levy and the delivery of its purpose.

Mr. Boakye said government should immediately apply the estimated accumulated balance of GH¢948 million in the PSRL Account to cushion petroleum consumers.

“Government should ensure that GRA improves the efficiency

of revenue collection from the levies to allow the reduction of levies to further cushion consumers,” he said.

He urged government to take steps to review the margins, taxes, and levies regime for petroleum products to eliminate those that had outlived their usefulness.

Mr. Duncan Amoah, the Executive Director of the Chamber of Petroleum Consumers (COPEC), said the drive of forex could further cause

the price of fuel to increase to at least GH¢7.00 by the end of the month.

He said taxes imposed by the government on petroleum products continued to play a significant role in the rising cost of fuel in the country.

“Government must make efforts to address the situation to bring relief to citizens,” he said.

GNA

The role of hot water in maintaining good hygiene

T

he importance of good hygiene cannot be overestimated.

Good hygiene which entails keeping the hands, nails, hair, and body clean crucial for stopping the spread of germs and dissuading them from entering the body to cause illness.

Good hygiene involves the daily routine tasks of brushing the teeth and flossing to maintain good dental care, washing the hair regularly, and also taking daily baths with hot or warm water, especially when the body has been exposed to dirt and germs in the cause of work or play. Another important aspect of hygiene is the washing of hands especially in this pandemic season which ensures that the hands are germ-free and clean as often as possible.

Bathing with warm water from a good source of heated water allows the expansion of the blood vessels to promote better blood circulation in the body especially to areas of injuries on the skin for

proper healing. This enhances the healing process, allowing for bruises on the skin to heal faster thereby preventing infection.

Experts also opine that washing the hair with hot water opens the pores of the scalp for deep cleansing and also allows for the scalp to absorb oils and moisture which is good for hair growth.

Cosmetic dermatologists also acknowledge that warm water promotes healthier skin and encourages hair growth and vitality while people who have aged gracefully attest to the drinking of hot water and lemon to help in the fight against the body's internal and external aging processes.

Washing of the hands with warm water especially after touching a face mask is essential as well as washing of all cloth face masks with hot or warm water.

Cleaning napkins with hot water and dishes with warm water will help maintain a clean and hygienic environment in your

home giving little room for viruses and bacteria to thrive. Washing clothes, bathtubs and floors with warm water from water heaters are also known to not only clean them more effectively but also weaken and eliminate bacterial and viral elements on these surfaces.

In our everyday lives, hot water helps us maintain a hygienic and sterile environment. Research shows that bathing with hot water makes for a cleaner and more

thorough bathing experience.

This is because hot water melts out the dirt and oil from the skin more effectively than cold water.

Hot water is also more effective in washing dishes and clothes as well as surfaces and mopping floors. More so now, hot water is not just a luxury but a necessity in every home to maintain hygiene and ensure cleanliness, hence water heaters have become an indispensable and must-have gadget in every home.

Summarily, though easily overlooked, hot water in most ways has helped us live a more hygienic life. Taking hot baths at various stages of our lives has helped us relax better while helping our skins and hair grow and grow healthily. Hot water has helped us clean our environments more effectively thereby helping us live healthier and more hygienic lives. Wouldn’t you invest in a quality water heater like the Ariston water heater for your home today?

13

News

FRIDAY OCTOBER 22, 2021

Alpha TND opens two new manufacturing facilities in Prampram

A

lpha TND Limited, a player in Ghana’s power sector and in the sub-region providing an array of energy solutions, has inaugurated two new manufacturing facilities at Prampram near Tema.

The addition of the new facilities consisting of LV/MV panel manufacturing and STS meter manufacturing, is to augment the company’s capacity and brings its total manufacturing facilities to three.

The new meter manufacturing facility will exclusively be engaged in the manufacturing of all types of Standard Transfer Specification (STS) compliant meters, Meter Management System (MMS) complaint meters, customised according to utility requirements.

It has an annual production capacity of 160,000 STS energy meters in one shift of operation and is expandable for future enhanced requirements. With the existing facility, the current total installed capacity for energy meters will now increase to 720,000 meters per annum, covering every type of metering product required in the West African market.

The company’s first manufacturing factory, which was inaugurated in 2014 has since produced and supplied over 1.1 million quality energy meters to various utilities in Ghana.

The second facility will produce low & medium voltage metering panels, and is designed to produce about 9,000 metering panels per annum.

During the inauguration ceremony, a representative of Alpha TND, Ms. Vinita Bhati said “After almost a decade of passionate engagement, we are happy to say Alpha TND has rapidly become one of the leading companies in the power sector of Ghana and surrounding countries.

These new facilities will promote the Made in Ghana initiative, reduce import dependency and improve availability of goods, thus, creating several direct and indirect employment, skill development and adaption of global technologies.”

In the decade, Alpha TND has also been engaged in the provision of metering solutions, construction and

operationalisation of substations and switching stations, transmission lines, distribution and electrification projects.

Additionally, the company also trades in fast-moving energy goods (FMEG) such as LED lighting products, ceiling fans and house wires.

According to Ms. Vinita Bhati, the company’s bullish performance over the years has resulted in many achievements, stressing that Alpha TND has raked into Ghana’s economy significant forex earnings in excess of US$100 million through exports and capital importation.

Also, 250 skilled persons have directly been employed, with the existing manufacturing facilities exclusively run by a well-trained Ghanaian team.

According to the company, it boasts of a matchless profile in the execution of EPC projects,

including the construction of a dozen of switching and substations in West Africa, with its most current projects sited in Asankragua & Juaboso in Western and Western North regions of Ghana respectively.

She further intimated that Alpha TND’s flagship project remains the prestigious “TemaMeridian” sub-station and that through these and many other projects, the company has contributed immensely in connecting electricity to more than 140,000 households and working to connect a further 100,000 consumers in the West African sub-region.

The company is also making strategic incursions into renewable energy, having cumulatively commissioned more than 3MW of roof-top solar generation projects and currently working on a 7MW groundmounted solar generation project.

Inaugurating the facility, the Deputy Minister for Energy, William Owuraku Aidoo said the government was keen on supporting companies within the power sector to adhere to its local content and local participation policy as this will go a long way to boost economic empowerment.

He admonished other companies to look for opportunities within the sector to scale up their expansion for more jobs and impact across the country.

Oxfam to train 270 women

O

xfam in Ghana has launched a project to train 270 women in nine communities across the country in soap, butter and organic fertilizer production.

Under the Systems Innovation for Women Economic Empowerment (SIWEE), the initiative will in the next six months work with 30 women from each community including Adiembra, Abamkrom, Salankpang, Mbanayili, Nwoa, Dalun Kukuo, Jangyili, Tesina Tanga and Yaraga.

The project is an initiative of Oxfam in partnership with Mondelez, Peasant Farmers Association of Ghana, Shea Network and Tungteiya Shea Women Association.

Launching the project at an event to mark the rural women’s day celebration at Adiembra in

the Eastern Region on October 15, the Media and Communications Officer of Oxfam in Ghana, Naana Nkansah Agyekum, stated that the project was to help women diversify their income.

“I have always admired the energy and strength our rural women exhibit on the farm and at home as they go about their daily activities.

“These rural women are increasingly becoming the backbone of our agriculture sector, in spite of the numerous barriers they face in accessing arable lands, soft loans and most importantly the burden of unpaid care work,” she said.

According to her, rural women’s day celebration on every October 15 therefore comes as a key moment for us to share in their joy and struggles.

She said Oxfam and its partners

marked this day with women in Asamankese Yaraga N02 and Mbana Yili in the Eastern, Upper East and Northern Regions respectively.

She noted that it was not just a day to interact and celebrate with them but to launch three pilot projects under SIWEE initiative.

Using a social lab approach, Ms Agyekum stated that the SIWEE project created space for women to explore opportunities within the cocoa, shea and sorghum value chains.

“As I interacted with some of the women, they showed that grin for being acknowledged globally on such a day.

“Their needs come endlessly as an attempt to find out their pressing issues resulted in a long list from road construction to supply of farm machinery.

“Whichever way we see it; I

believe there is a lot we can do to ease their stress to empower them economically. What about making roads leading to farmlands more motorable to cart their produce easily.

“What about adding value to our agricultural produce to avoid the glut that we see when certain foodstuffs are in season. What about making their access to farm machinery and input a bit much easier. The list can go on and on,” she said.

But in the face of all these challenges, they still appreciate the very little NGOs and district assemblies do for them.

14

FRIDAY OCTOBER 22, 2021

15

Banking

FRIDAY OCTOBER 22, 2021

The inflation catch-up game

I

nflation is now on the front page of newspapers around the world, and for good reason. Prices of more and more goods and services are increasing in a manner not seen for decades. This inflationary spike, accompanied by actual and feared supply shortages, is fueling both consumer and producer anxiety.

By also threatening to worsen inequality and derail a muchneeded sustained and inclusive economic recovery from the COVID-19 pandemic, it is also becoming a hot political issue.

For their part, policymakers at central banks in the United Kingdom and the United States have started to move away from the narrative of “transitory” inflation.

(The cognitive transition at the European Central Bank is less pronounced, which makes sense, given that the inflation dynamics there are less pronounced.) But the pivot is far from complete and not nearly quick enough, particularly at the US Federal Reserve, the world’s most powerful and systemically important monetary institution. Delays in Congress approving measures to increase productivity and enhance laborforce participation are not helping, either.

The reasons for the rise in inflation are well known.

Buoyant demand is encountering inadequate supply – a result of disrupted transportation and supply chains, labor shortages, and an energy squeeze.

While notable, this price surge does not herald a return to a 1970s scenario of double-digit inflation rates. Rigid cost-price indexing is rarer these days. Initial conditions regarding the formation of inflationary expectations are a lot less unstable. And central banks’ credibility is much higher, although it is currently facing its severest test in decades.

But inflation will nonetheless be much more pronounced than top Fed officials had thought when they repeatedly dismissed increasing price pressures as a temporary phenomenon. Even today, their inflation forecasts – despite having been revised up several times already – still underestimate what lies ahead.

Survey-based inflation expectations compiled by the New York Federal Reserve have risen above 4% on both a one- and three-year time horizon. Knockon cost-push inflation tendencies are broadening. Quit rates among US workers are at record highs as employees feel more comfortable leaving their jobs to seek betterpaying positions or strike a better work-life balance. There is more talk of labor strikes. And all of this is exacerbated by consumers and firms bringing forward future demand, mainly in response to concerns about product shortages and rising prices.

The current bout of inflation is part of a general structural change in the global macroeconomic paradigm. We have gone from a situation of deficient aggregate

demand to one in which demand is fine overall. Notably, US retail sales increased by a higher-thanexpected 13.9% year on year in September, indicating that there are still quite a few pockets of pent-up purchasing power being translated into effective demand.

Of course, this is not to say that there are no issues regarding the composition of demand that must be addressed. Inequality, not just of income and wealth but also of opportunity, remains an urgent concern.

Higher and more persistent inflation underscores such concerns, because its implications are multifaceted – economic, financial, institutional, political, and social. Those effects will prove increasingly uneven in their impact, hitting the poor especially hard. Globally, the fallout from the inflationary surge risks knocking some lowerincome developing countries off a secular path of economic convergence.

All this makes it even more important for the Fed and Congress to act promptly to ensure that the current inflationary phase does not end up unnecessarily undermining economic growth, increasing inequality, and fueling financial instability. A marked reduction in monetary stimulus, still operating in hyperemergency mode, is needed, notwithstanding the unlucky timing that governs the shift to the Fed’s new policy framework.

And US lawmakers can assist

by moving more forcefully on supply-enhancing initiatives, for both capital and labor, that fall squarely in their domain.

That means passing measures to modernize infrastructure, boost productivity, and increase laborforce participation.

Policymakers should also strengthen prudential regulation and supervision of the financial sector, especially the nonbank system. And, given the greater pressures on corporate profit margins and the superior ability of large firms to navigate supply disruptions, they will need to keep a close eye on firm concentration.

It is good news that, after initially and persistently misreading US inflation dynamics, more Fed officials are now starting to come to grips with the situation. The Fed would be well advised to catch up even faster. Otherwise, it will end up in the midst of a blame game that will further erode policy credibility and undermine its political standing.

Mohamed A. El-Erian, President of Queens’ College, University of Cambridge, is a former chairman of US President Barack Obama’s Global Development Council. He was named one of Foreign Policy’s Top 100 Global Thinkers four years running. He is the author of two New York Times bestsellers, including most recently The Only Game in Town: Central Banks, Instability, and Avoiding the Next Collapse.

16

FRIDAY OCTOBER 22, 2021

17

Feature

FRIDAY OCTOBER 22, 2021

China must restore growth

C

hina is having an eventful month, marked by proliferating power-supply disruptions and the debt crisis of the country’s second-largest property developer, Evergrande.

What does this mean for China’s post-pandemic economic recovery and growth prospects?

Begin with the energy crisis, which started when a rapid increase in exports – driven by the global recovery – fueled a sharp increase in demand for electricity.

China remains dependent on coal for 56.8% of its total electricity supply. And yet, in an effort to meet mandatory targets for reducing energy consumption, local governments have shut down many coal mines in recent years.

At the same time, the government’s climate goals – to reach peak carbon-dioxide emissions by 2030 and achieve carbon neutrality before 2060 – discourage investment in the coal industry. Of course, these goals also encourage investment in renewables, which are a growing part of China’s energy mix. But renewables are nowhere near where they need to be to cover the current shortfall.

As a result, when energy demand surged, so did coal prices. But, because China’s government regulates electricity prices, energy providers – most of which are state-owned enterprises – could not pass the costs onto customers. To limit the losses, they cut electricity supplies, thereby forcing some manufacturers to curtail production.

Not surprisingly, the government sprang into action.

It ordered a rapid expansion of some coal mines, and the reopening of others. It gave utility companies more leeway in setting electricity prices. And it pushed manufacturers to boost energy efficiency and accelerate investment in renewable energy.

China will quickly overcome the power shortages, which already are becoming less acute.

But developing a more resilient, sustainable energy sector will take time. And if each step of the development is not carefully planned and implemented, this transition could weigh on economic growth.

The Evergrande crisis, too, poses serious risks to growth.

Over the years, owing to defective corporate governance, the developer expanded at a frantic pace, not only through its realestate investments, but also by diversifying into the electricvehicle industry. To fund its activities, it borrowed heavily from both commercial banks and capital markets, including issuing dollar bonds to foreign investors.

Ultimately, it racked up some CN¥800 billion ($124 billion) in debt.

Though Evergrande has more than CN¥1.85 trillion in assets, it has not been able to sell them fast enough. Last month, when the company admitted that it is unlikely to be able to service its debts, rumors of an impending collapse – and a potential Chinese financial crisis – began to swirl.

Yet fears seem largely to be overblown. To be sure, it would

be unwise to predict Evergrande’s fate at this point. But it is probably safe to assume that the debacle does not pose a systemic threat to China’s financial sector.

Pundits have been predicting since 2012 that a housingmarket collapse would trigger a financial crisis in China. But in Evergrande’s case, the problem is liquidity, not solvency, and any spillover effects can be contained, not least because, despite its issues, China’s banking system is basically healthy. Real-estate developers and home buyers account for only about 30% of total bank loans, and that share is falling. The share of new loans that are real estate-related is also on the decline, having dropped from 45% in 2016 to less than 24% in September 2020.

Moreover, in China, there are no subprime loans, and virtually no securitized mortgage loans.

More importantly, there are very few cases of delinquency, let alone mortgage defaults by households: most Chinese commercial banks’ non-performing loan ratio is less than 2%. Even if there were a major financial event, the Chinese government has enough instruments to deal with it.

So, like China’s energy crisis, the Evergrande debacle does not pose an imminent systemic risk. But that does not mean policymakers should be complacent.

The real-estate sector is a pillar of the Chinese economy, and an important link in the production chain. And Evergrande’s collapse would severely disrupt it – not least because a few other large real-

estate developers might follow in Evergrande’s footsteps. Some non-bank financial institutions would also be in trouble. And, of course, Evergrande’s suppliers would suffer enormously. All of this would worsen China’s economic prospects.

To prepare for what may come, financial-system vulnerabilities, especially the corporate sector’s high leverage ratio, must be addressed. But the first priority must be to end the persistent growth slowdown, which began in 2010. This trend is at least as worrying as the short-term structural problems that have grabbed headlines lately. China’s experience over the past 40 years shows that without decent growth, financial stability is difficult to achieve.

This pattern is borne out by recently released official statistics indicating that China’s annual growth rate was a lower-thanexpected 4.9% in the third quarter of this year, and it is widely feared that the growth rate in the fourth quarter may be even lower. To counter that possibility, Chinese policymakers need to pursue bolder fiscal and monetary expansion, alongside structural reform and adjustment.

Yu Yongding, a former president of the China Society of World Economics and director of the Institute of World Economics and Politics at the Chinese Academy of Social Sciences, served on the Monetary Policy Committee of the People’s Bank of China from 2004 to 2006.

18

FRIDAY OCTOBER 22, 2021

19

Feature

FRIDAY OCTOBER 22, 2021

Our common agenda and the road to 2023

BY Madeleine Albright, Ibrahim Gambari

N

ot since World War II has the international community confronted as monumental a test as the intertwined crises of COVID-19 and climate change, and the profound social and economic inequalities they have exposed.

Yet precisely when global, collective action is most needed to address these crises, exclusionary nationalism and rising greatpower tensions, including a new Cold War-like standoff between democracies and autocracies, are eroding essential multilateral cooperation.

In his pathbreaking new report, Our Common Agenda, UN Secretary-General António Guterres argues that “humanity faces a stark and urgent choice: a breakdown or a breakthrough.”

Guterres underscores the fundamental values of trust and solidarity – and the need for a new social contract between citizens and their institutions at all levels of governance – in seeking a just and sustainable global recovery from the current pandemic. As we mark another UN Day (October 24), these values must inform a politically savvy yet ambitious strategy for long-overdue institutional and legal changes to the post-1945 multilateral system.

Shortly after UN member states gather, under the leadership of Abdulla Shahid, President of the General Assembly, on October 25 in New York, they are expected to endorse a resolution to initiate follow-up action on many of

Guterres’s proposals. Among his most timely ideas for building more inclusive and networked multilateralism are an updated Agenda for Peace, supported by a new Emergency Platform to respond to complex global crises; the appointment of a Special Envoy for Future Generations; and innovations involving digital transformation, data analytics, and strategic foresight.

We also applaud Guterres’s call for an “investment boost” for the UN Sustainable Development Goals and for a green and just recovery for all countries (complementing next month’s UN climate-change conference in Glasgow). His proposal to hold a biennial summit of world leaders representing the G20 and the UN Economic and Social Council, alongside the heads of the United Nations, the World Bank, and the International Monetary Fund is the right way to shepherd this process. The report of the 2015 Commission on Global Security, Justice & Governance, which we co-chaired, made a similar recommendation: a “G20+” that would convene the group’s leaders and all UN member states every two years in September during the General Assembly’s High-Level Week, with a lightly staffed G20 secretariat to sustain and manage the relationship.

Given the urgent need to improve governance of the global commons, including the high seas, Antarctica, the atmosphere, and outer space, we support Guterres’s suggestion to repurpose the UN Trusteeship Council. But effectively delivering global public goods and managing

global public risks will require authorities that go beyond the reconfigured body’s proposed “advice and guidance” role. In our 2015 report, for example, we proposed upgrading the UN Peacebuilding Commission from an advisory body to one empowered to coordinate international responses and mobilize resources for conflict situations not on the Security Council’s agenda. This Peacebuilding Council could also monitor early warning indicators to avert the outbreak or recurrence of deadly violence.

Implementing Guterres’s ambitious proposals will necessitate government buyin, which in turn will require a dedicated intergovernmental reform process to rejuvenate the global governance system.

Time is of the essence: Before the year concludes, UN member states should endorse a followon “modalities resolution” supporting Guterres’s call for a Summit of the Future in September 2023.

Several steps should be taken to maximize the summit’s impact. For starters, preparatory committees (PrepComs) should be convened around the world to consider and advance global governance innovations in peace, security, and humanitarian action; sustainable development and COVID-19 recovery; human rights, inclusive governance, and the rule of law; and climate governance. They should also consider how to promote integrated, system-wide reforms based on the ideas that emerge.

Second, building on the

far-reaching UN75 Global Conversation dialogues and surveys, global and regional Peoples’ Forums and E-Dialogues should be established to increase global public awareness and channel civil-society perspectives into the PrepComs and summit.

Third, a High-Level Advisory Board (comprising public intellectuals and former heads of state) and a related series of UN ambassador-expert roundtables should be created to channel additional ideas into the PrepComs about how to strengthen the global governance system’s capacity to address major current and future threats.

Lastly, the 2023 summit must be preceded by broad agreement that its outcome document will emphasize select, concrete, timebound, and measurable reform commitments to aid near-term and longer-run results that are, at the very least, as ambitious as the 2005 (UN60) Outcome document.

These ideas and related proposals for global governance innovation are elaborated in the recent Stimson Center report Beyond UN75: A Roadmap for Inclusive, Networked, & Effective Global Governance. Combined with Our Common Agenda and countless good ideas advanced by past commissions, scholars, and advocacy organizations, they can help rebuild the trust and regenerate the solidarity needed to restore and strengthen people’s confidence in their multilateral institutions. Now it’s time to get to work.

20

Markets

FRIDAY OCTOBER 22, 2021

CONTINUED ON PAGE 21

21 CONTINUED FROM PAGE 20

FRIDAY OCTOBER 22, 2021

22

BUSINESS24.COM.GH FRIDAY OCTOBER 22, 2021

NO. B24 / 264 | NEWS FOR BUSINESS LEADERS

MONDAY MAY 3, 2021

FRIDAY OCTOBER 22, 2021

UNDP, FDA join forces to strengthen regulation of health technologies

W

ith support from the United Nations D e v e l o p m e n t Programme (UNDP)-led global health project the Access and Delivery Partnership (ADP), Ghana is taking active measures to further strengthen the regulation of health technologies in the country.

Effective regulation is a critical component of a well-functioning health system, as it enables access to health technologies that are quality assured, safe and effective. However, introduction of new technologies into national health systems require new skills and capacities, as well as robust institutional and regulatory frameworks, and safety monitoring systems to be in place.

To address this, the African Union Model Law on Medical Products Regulation was developed in 2014-2015, and endorsed by Member States in 2016, to serve as a template for countries to strengthen and harmonize their regulatory frameworks. Strengthened and harmonized regulatory systems across Africa will be critical to improving the predictability and efficiency of regulatory approvals.

It has been demonstrated that regional harmonization initiatives can avoid duplication of regulatory reviews, facilitate

mutual recognition and accelerate access, so that new health technologies can be delivered sooner.

In the context of the ongoing COVID-19 pandemic, these issues take on an even greater urgency.

Enabling harmonization and improving regulatory efficiency can facilitate timely access to COVID-19 vaccines and other health technologies, as well as enabling effective monitoring of safety issues.

So far, only a handful of countries have completed the process of domesticating the AU Model Law into their national legislations. ADP is working with the African Union Development Agency (AUDA-NEPAD) to ramp up the number of countries undertaking the domestication process, and in Ghana, the project is partnering with the Food and Drugs Authority (FDA) in this regard.

The FDA is the national regulatory body in Ghana mandated to regulate food, drugs, veterinary medicines, cosmetics, medical devices, household chemical substances, tobacco and tobacco products, blood and blood products, etc. as well as the conduct of clinical trials.

“This AU Model Law provides a comprehensive framework for an integrated and harmonized approach for medicine

regulation,” said Angela Lusigi, UNDP Resident Representative in Ghana. “When effectively implemented at national level, it will significantly contribute to ensuring that new health technologies can become available sooner – thus improving health access and delivery for all.”

As part of the initiative, a gap analysis study was conducted earlier this year which identified differences between the Ghana Public Health Act, 2012 (Act 851) and the AU Model Law, and categorized them into three areas, namely: 1) provisions that needed substantial revisions; 2) provisions that required only minor revisions; and 3) new provisions that were needed to properly align with the AU Model Law. Currently, parts 6, 7 and 8 of the Public Health Act (Act 851)

provide the legislative framework for FDA’s operations. Ghana is keen to fully align with the AU Model Law provisions, and the FDA, with the support of the Ministry of Health, is leading this process.

Recently, a stakeholder consultative meeting was held on 12-13 August 2021 to provide additional input into the gap analysis and develop a concrete roadmap for moving forward.

In opening remarks delivered by the Chief Executive of the FDA, Mrs. Delese A.A. Darko noted: “Although Ghana was actively involved in the development of the AU Model Law, we are yet to domesticate and incorporate the Model Law fully into our national law. We are therefore most grateful to the UNDP partnership for this two-day stakeholder consultation workshop that has brought all of us together to work for a robust and effective regulatory regime in Ghana.”

After the stakeholder consultation, the next step is for the legal drafting process to commence later this year.

As part of regional efforts to strengthen capacity and advance the AU Model Law, ADP and AUDANEPAD have also developed a Guidance Document, which will serve as a practical resource tool for countries navigating the domestication process.

The Rotary Club of Tema Meridian donates wheelchairs to beneficiaries

By Baptista S. Gebu

T

he Rotary Club of Tema Meridian has donated wheelchairs to five beneficiaries at the Tema Rotary Center located at Tema Community 5 during the club’s meeting.

The beneficiaries are Ebenezer Ghartey, Michael Akuffo, Dianna Adumuah, Grace Barnes and Esther Holdbrook who were overjoyed when the wheelchairs were presented to them.

Present were members of the board, club members, beneficiaries, friends and families of the beneficiaries, some visiting Rotarians and other guest from the community.

The families of the beneficiaries thanked the club for the kind gesture and promised to abide by the terms and conditions which among other things including beneficiaries ensuring that the wheelchairs were not to be used by the beneficiaries along the shoulders of the road begging for arms.

The siting President RP Kwaku Baah in his address appreciated the work of the Wheelchair

Foundation and District 9102’s contribution as well as their club’s support to fully absorbing the costing necessary to get this project underway.

He was overjoyed, his board and club have been able to put some smiles on the faces of all beneficiaries. He extended his gratitude to the beneficiaries for giving them the opportunity to serve them as this is what Rotary stands for “Service Above Self”.

Rotary is a global network of 1.2 million neighbors, friends, leaders, and problem-solvers who see a world where people unite and take action to create lasting change – across the globe, in our communities, and in ourselves.

Solving real problems takes real commitment and vision. For more than 110 years, Rotary's people of action have used their passion, energy, and intelligence to take action on sustainable projects. From literacy and peace to water and health, we are always working to better our world, and we stay committed to the end.

Rotary members believe and share responsibility to take action on our world’s most persistent issues.