Business Analyst - March 31

BUSINESS MARKET RATES

US$ 1 – GH¢7.51

GHANA STOCK MON, 28 MAR. 2022

Indices and Market Cap Level Previous Level Change % Change

GSe Composite Index 2,810.01 2,798.27 +11.74 +0.42%

GSe Financial Index 2,073.63 2,073.63 0.00 0.00%

GSe Market Cap (GhS 'mn) 63,883.61 63,760.71 +122.90 +0.19%

Thursday, March 31, 2022. Vol. No. 144

GH¢2.50

COCOA: US$2,650.33 per tonne

CRUDE OIL: US$99 per barrel

GOLD: US$1914.92 per ounce

• Dr. Ernest

Addison,

Governor

of BoG

• President

Nana Addo

Dankwa

Akufo-Addo

• Ken

Ofori-Atta

The President of the Republic of

Ghana, Nana Addo Dankwa

Akufo-Addo, has revealed that

the government’s Agenda 111

project will create over 33,900

Thursday, March 31, 2022

Russia-Ukraine War Update

Ukraine refugee exodus

reaches four million

UK announces new laws aimed at

Russian oligarchs

The UK has announced

new laws which aim to

"prevent Russian oligarch

access to UK aviation and

maritime technical

services".

The UK's Foreign Office said the

legislation would prohibit the

maintenance of aircraft or ships

belonging to sanctioned Russian

oligarchs or their businesses.

The department said the new

powers had been used immediately

to sanction Russian businessmen

eugene Shvidler and Oleg Tinkov.

Meanwhile, the finance, trade

and shipping sanctions imposed in

relation to Crimea have been

expanded to the Donetsk and

Luhansk regions.

UK Foreign Secretary Liz Truss

said: "There is no doubt that

[Vladimir] Putin and his elite have

been surprised by the strength of our

sanctions.

"We will continue to ramp up the

pressure so long as Russian troops

are in Ukraine, targeting not only

the businesses of oligarchs but also

their assets and international

lifestyles."

UK has issued 2,700 visas

through homes for Ukraine

scheme

Ukrainian refugees cross the

Ukraine-Poland border on 26 March

homes for Ukraine, which

launched on 14 March, aims to allow

people, charities, community groups

and other organisations to sponsor

named refugees, housing them in

their homes or buildings. We don't

know how people have actually

arrived and settled into UK homes.

Charities have said the process "is

just too difficult" for those fleeing

Ukraine.

A further 22,800 visas from 31,200

applications have been issued under

the UK's Ukraine Family Scheme,

the home Office said. These are for

refugees with close relatives living in

the UK.

There has been criticism of the

scale and the speed of the UK's

response to the refugee crisis

prompted by Russia's invasion of

Ukraine.

The British Red Cross said the

quickest way to help people would be

for the UK to stop requiring visas -

which would bring it in line with

many other countries.

Labour said the government had

made "shamefully slow progress" in

helping refugees from Ukraine,

pointing out that just one in 100

homes for Ukraine applications had

resulted in a visa so far.

Biden and Zelensky discuss

'defensive support and

sanctions'

earlier the White house said US

President Joe Biden would be

holding a phone conversation

with Ukrainian President

Volodymyr Zelensky.

Zelensky has tweeted that

their conversation lasted an

hour, and covered assessments

of the situations on the ground

and in talks - as well as

sanctions, aid and "specific

defensive support".

"That's her, isn't it?" Clare

Maddox nervously asked her

daughter, Sophia, as they

waited by the arrivals gates at

Stansted Airport.

They were looking out for a

mother and daughter - two

refugees who were among the first

to arrive in the UK under the

government's homes for Ukraine

scheme.

It had been 11 years since they

last saw Diana Sachavo in the flesh.

She'd visited the UK, aged 10. Diana

had come over with the help of the

charity Chernobyl Children's

Lifeline and stayed with the

Maddoxes at their house in

Billericay, essex.

After, they'd stayed in touch. Now

she was returning - alongside her

mother - this time as a refugee.

"I'm so glad you are here," Clare

told them, as she was introduced to

Diana's mum, Olena, for the first

time. Their flight from Lithuania

had just landed and Clare tearfully

hugged both women, not letting

them go.

They arrived in the UK as part of

the homes for Ukraine scheme,

which launched two weeks ago. Yet

latest figures suggest they are

among the lucky ones.

Where have refugees from

Ukraine fled to?

As we reported earlier, some

4,019,000 people have now fled

Ukraine since the start of the war on

24 February, according to the latest

figures from the UN refugee agency.

More than six million people are

displaced within Ukraine, meaning

that in total at least a quarter of the

population have abandoned their

homes because of the war.

It's the biggest refugee crisis

in europe since World War

Two.

More than 1,000 civilians deaths

recorded in Ukraine - UN human

rights chief

More now from the UN's human

rights chief's update on the situation

in Ukraine.

Michelle Bachelet said her office

had verified 1,189 civilian deaths in

Ukraine, including 98 children, since

the invasion began on 24 February.

however, the true toll is likely to

be far higher, she warned, explaining

that it was difficult to confirm

casualties in the areas most affected

by the war, such as Mariupol.


SONA22

• Continued from front

Agenda 111 to

create 33,900 jobs

jobs.

Akufo-Addo said this while

delivering the State of the Nations

Address on the floor of Parliament on

Wednesday, March 30th.

he mentioned that the covid-19

pandemic exposed other shortcomings

of our country, which have,

undoubtedly, contributed to the

anxieties that have befallen the nation.

he reiterated that Agenda 111 was

born out of this necessity to address

some of these shortcomings.

• Akufo-Addo assures

According to Akufo-Addo, the

government is undertaking the

construction of 111 entities, which

comprise standard 100-bed district

hospitals for one hundred and one

(101) districts without hospitals.

he added that the projects come

with accommodation for the doctors

and nurses who will be assigned to the

hospitals.

“We are undertaking the

construction of 111 entities, which

comprise standard 100-bed district

hospitals for one hundred and one

(101) districts without hospitals, with

accommodation for doctors and

nurses.

“Agenda 111 is an ambitious project,

which must and will be done, and

which will create some thirty-three

thousand, nine hundred jobs for

construction workers, and, on

completion, some thirty-four

thousand, three hundred jobs for

health workers.”

“I have to report that, like all major

construction projects, it is evident that

the initial schedule we gave for the

completion of Agenda 111 was overly

ambitious. Identifying suitable sites

around the country,” Akufo-Addo said

on the floor of Parliament.

Stabilising the cedi

BoG introduces

more measures

The Bank of Ghana has stepped up its

moves to firmly stabilised the cedi

which came under intense pressure in

the first two and half months of 2022.

To this end, the Central Bank has

made available $100 million to dealers

in Foreign exchange Forward Auction

limited to the 30-day tenor, that began

yesterday March 30, 2022.

In addition to the guidelines for

Bulk Oil Distributing Companies

(BDCs) FX Auctions, the Central Bank

said all authorized Foreign exchange

Dealer Banks shall also comply with

Bank of Ghana

also directed banks to

ensure that

participation “The

in the

auction is limited to

qualifying BDCs based

on conditions such as

evidence of a valid

license to operate as

issued by the National

Petroleum Authority

as well as they being

in good standing with

the NPA.

the provisions of the Code of Conduct

for the Interbank Foreign exchange

market in Ghana.

The Bank of Ghana also directed

banks to ensure that participation in

the auction is limited to qualifying

BDCs based on conditions such as evidence

of a valid license to operate as

issued by the National Petroleum Authority

as well as they being in good

standing with the NPA.

The BDCs must also provide evidence

of a contract indicating volumes

and cost of the products including premiums

or discounts applied, as well as

payment due date as well as their contracts

being valid for the current window

between April 1st and April 15th,

2022.

They must also ensure evidence of

sales to Oil Marketing Companies

within the last three months.

BDCs are also expected to deposit

all sales proceeds into an escrow account

with their bidding banks for the

window in which they participate in

an auction. This will be closely monitored.

Banks are also required to pass on

FX won by BDCs at the winning bid

rates with no spreads.

The Bank of Ghana noted that it reserves

the sole right to auction allocation.

Meanwhile, authorized dealers are

being invited to submit their bids in

the requested format for the auction

through the dedicated email bogfowards@bog.gov.gh

between 10.30 am

and 11.30 am.

My gov’t remains alive

and will deliver results

• Akufo-Addo to Ghanaians

PReSIDeNT Akufo-Addo has

given assurance to Ghanaians

that his government remains

alive to its responsibilities and

will deliver results for them.

Speaking at the “State of

the Nations Address” in Parliament

yesterday, President

Akufo-Addo said the difficulties

of the time notwithstanding,

his government continues

to grow this economy and

bring prosperity.

“The difficulties of the

time notwithstanding, we intend

to continue to grow this

economy and bring prosperity.

That will only happen when

we continue to invest in the

future.”

President Akufo-Addo further

said there is great potential

for the Ghanaian people in

the creative arts, fashion, and

film industry, adding “we

want to unleash the creativity,

enterprise, and innovation of

our youth, by giving them education

and skills training in

the Creative Arts.”

Planting for Food and Jobs

transforms the lives of farmers

he continued that the

successes of the Programme

for Planting for Food and Jobs

have transformed the lives of

many farmers around the

country, expressing happiness

that the Tono Irrigation Dam

has been fully rehabilitated,

and is back to life in full operation,

serving the needs of

many farmers in the areas

around the dam.

The result of significant

investment by my government

in the Ghana Commercial

Agriculture Project has resulted

in the availability of a

total of 13,19) hectares of additional

irrigable land, through

the rehabilitation of Tono,

Kpong Left Bank, and Kpong

Irrigation Schemes, for rice

and vegetable cultivation. Immediate

benefits arising from

the scheme include improved

rice yields increasing from 4.5

tons per hectare to 5.5 tons per

hectare, leading to increased

production and growth in

farm incomes.

This President Akufo-Addo

said has benefitted some

14,264 smallholder beneficiaries

directly, creating some

forty thousand 40,000 jobs

along several value chain activities

generated from the irrigation

schemes.

The President also spoke

highly of the cocoa industry,

saying, a lot of interesting and

far-reaching achievements

this past year, including producing

1,047,385, the highest

ever recorded in Ghana’s history.

“Together with our counterparts

in Cote d’Ivoire, we

have addressed the inequalities

in the international marketing

system of cocoa by

paying a Living Income Differential

of $400 per tonne of

cocoa to our farmers. This is a

remarkable initiative that

cushions the income of the

Ghanaian cocoa farmer, the

backbone of our economy”.

106 1D1F under full operation

For the One District One

Factory (1D1F), out of a total of

278 1D1F projects at various

stages of implementation in

all 16 regions, 106 factories are

currently operational, 148 are

under construction, and 24

projects are at the mobilization

stage.

The President pointed out

that in order to bring the

youth on board the 1D1F Programme,

58 out of the 278 1D1F

Projects have been developed

as enterprises fully owned by

youth groups, with direct government

support.

each of these 1D1F Youth

companies is owned by between

40 and 50 youth as

shareholders.

President to commission

automotive plant that will

produce Nissan, Peugeot

President Akufo-Addo will

tomorrow, 31st March 2022,

commission a new state-ofthe-art

assembly plant with

the capacity to assemble 5,000

new vehicles per annum.

This facility will assemble

Nissan and Peugeot brand

new vehicles.

Three other vehicle manufacturers,

namely KIA,

hyundai, and Renault are also

expected to commence commercial

production this year.

The move is due to the

well-defined Ghana Automotive

Development Policy

which was outdoored in August

2019.


MACRO-ECONOMIC

MANAGEMENT OVER

THE NEXT FOUR

ThErE are striking similarities between the economic

management game plans as contained in the respective

manifestos of Ghana’s two leading political parties and

since they are the only two that have any realistic chance

of producing the next president this is critically important..

Indeed, we find this curious in the light of the fact that the

two parties, in their public statements and the assertions

made by their respective chieftains and communicators

during regular debates, never seem to find common

ground on anything, no matter how mundane.

To be sure, the similarities in each party’s manifesto

with regards to management of the macro-economic

fundamentals are necessary and indeed comforting. Both

parties express their commitment to prudence in the

management of the over-arching issues, such as the size

of the fiscal deficit and the public debt, the need to

restrain inflation and cedi depreciation and the need to

keep interest rates low.

Instructively though neither manifesto provides a

definite timetable for returning the fiscal deficit to within

the five percent of Gross Domestic Product ceiling as

established by the Fiscal responsibility Act, but which has

subsequently been suspended due to the fiscal situation

imposed by the economic effects of the COVID 19 global

pandemic. While this can be attributed to lingering

uncertainties – such as the possibility of a second wave of

infections and the still unknown timelines for approval,

production and distribution of a vaccine – cynics argue

that both parties are looking forward to using the

situation created by the pandemic to circumvent the

restraints on customary fiscal indiscipline imposed by that

key legislation.

This is key because an inordinately high yearly fiscal

deficit, no matter the cause, has dire implications for the

public debt, interest rates and access by the private sector

to credit, as well as cedi depreciation and inflation. Indeed

it is instructive that while both parties commit to public

debt sustainability, both have taken the country

dangerously close to unsustainable levels during their

respective most recent tenures in office, even as they put

the blame on the other, whenever they are in political

opposition.

With regards to initiatives to grow the real sector

differences emerge however. But while this is inevitable

considering that the NPP is basically a capitalist party and

the NDC is basically social welfarist, key similarities

emerge here as well.

Most notably both parties say they have identified

certain sectors which would serve as economic growth

poles and pull up the rest; and therefore would be given

focused government support rather than leaving market

forces to decide which sectors take the lead. Even more

instructively, the two parties have largely identified the

same very specific sectors – including tree crops which are

singled out in both manifestos, each for the very first time.

Another close similarity is the decentralization of

industrialization through the establishment of factories

nationwide by collaborations between the public and

private sectors. To be sure, the NPP has been adopting

this strategy since 2017 through its flagship one district

one factory initiative. Now the NDC plans its own version,

although specifically for agro-processing.

Considering the understated similarities between the

two overall game plans, voters who are not already loyal

to one party or the other on a long term basis, will need

to decide which of them is more likely to deliver on their

promises.

Since both presidential candidates have each already

served for one term, voters are well equipped to make

that decision.

The ultimate time

management lesson

BY MAXWELL

AMPONG

The most productive men

and women in the world

often speak about the

importance of time

management. We keep

asking them “what” their timemanagement

routine is because I

guess most people (me inclusive)

usually think if we copy exactly what

they do during their day, we can then

be as productive as them, or close,

even though we all live different

lives. The main advice in most time

management sessions is that you

have to squeeze as much from the

24hrs in a da.

Time Assets vs. Time Debts

Most productivity strategies focus

on short-term efficiency: how to

manage your to-do list effectively,

how to get more done each morning,

how to shorten your weekly

meetings, and so on. These are all

reasonable ideas.

We often fail to realize, however,

that there are certain strategic

choices that impact our time on a

larger scale. These choices can be

categorized as Time Assets or Time

Debts.

TIMe ASSeTS are actions or

choices you make today that will save

you time in the future.

Software is a classic example of a

time asset. You can write a program

one time today and it will run

processes for you over and over again

every day afterward. You pay an

upfront investment of time and get a

payoff each day afterward.

The car leasing system that Steve

Jobs developed is another example of

a time asset. It took him some time

to find a loophole and arrange a

repeatable leasing system, but his

process rewarded him with

additional time

and less hassle

every 6 months.

TIMe

DeBTS are actions

or choices you

make today that

will cost you

additional time in

the future.

email is a time

debt that most

people participate

in each day. If you

send an email

now, you are

committing to

reading the reply

or responding

with an

additional

message later.

every email you

send creates a

small debt that you have to pay back

at a later time.

This is not to say that all time

debts are bad. Perhaps you enjoy

serving on your school committee or

volunteering with a local

organization. however, when you

make these commitments, you are

also creating a time debt that you

will have to pay at some point.

Sometimes the debts we commit to

are worth sacrificing for, many times

they are not.

Time Assets in Real Life

I wrote down a short list of time

assets and time debts for my

business. here are a few I came up

with…

Assets

• Speaking. I can create a

speaking page on my website that

answers common questions and

qualifies the right kind of people.

This could include a descriptive

Frequently Asked Questions section

or a better sign up form. The goal of

the system is to set clear

expectations and answer common

questions that I usually have to

answer via email.

• Accounting. By setting clear

rules for my bookkeeper and

accountant, we can develop a system

for automatically tagging certain

expenses and transactions each

month, which minimizes the need

for me to manually approve repeated

transactions.

• Scheduling. Booking calendar

appointments, calls, and interviews

requires a lot of email.

Using scheduling software

eliminates this problem and lets

people choose from a pre-selected list

of available times.

Debts

• email. The more email I answer,

the more email I generate.

• Comments. I like the comments

on my site and I don't plan on

removing them. (I love hearing from

you!) But every time I publish an

article with a comments section, I'm

creating a time debt that I have to

pay back by approving and

moderating comments.

• Interviews. At first, I said yes to

every interview that came my way.

Today, I typically do 3 to 5 every week.

Saying yes to every interview has

become a time debt.

• Low quality work. If you don't

edit your article now, you'll have to

fix the grammar later. If you write

sloppy code now, you'll have to debug

it later. If you create a poor product in

the beginning, you'll have to service

customers and process refunds later.

• every low-quality piece of work

is a time debt that you have to pay

back. To quote John Wooden, “If you

don't have time to do it right, when

will you have time to do it over?”

A System For Your Time

Systems are more important than

goals, and Time Assets are a perfect

example of why this is true. each

Time Asset that you create is a

system that goes to work for you day

in and day out.

If your schedule is filled with

Time Debts, then it doesn't matter

how hard you work. Your choices will

constantly put you in a productivity

hole. however, if you strategically

build Time Assets day after day, then

you multiply your time

exponentially.

Driving a car without a license

plate might seem like an extreme

way to save time, but it is also a level

of strategic thinking that most

people never embrace. This isn't an

approach that only works for Steve

Jobs. It works for all of us.

Time Debts need to be paid. Be

careful how you choose them. Time

Assets pay you over and over again.

Spend more time creating them.

Maxwell Ampong is the CEO of

Maxwell Investments


Mastercard, Kosmos train next

generation of young entrepreneurs

The Mastercard

Foundation and the

Kosmos Innovation

Center (KIC), today

announced the launch

of a multi-year partnership to train

the next generation of young

leaders, and entrepreneurs in

Ghana’s agriculture sector.

Dubbed Initiative for Youth in

Agricultural Transformation

(I.Y.A.T), the program will scale

KIC’s proven transformational

model and initiatives such as the

AgriTech Challenge, Business

Booster, and Business Incubation

across the 16 regions of Ghana. This

will enable young entrepreneurs in

the agriculture and agricultureadjacent

sectors to benefit from

capacity building, access to finance,

and business scaling opportunities

– creating work opportunities for

163,000 young Ghanaian women

and men in the process.

The four-year, $16 million

program is aligned to the

Mastercard Foundation’s Young

Africa Works’ vision and work in

Ghana, which seeks to deepen

efforts in the agriculture and

agriculture-adjacent sectors using a

value chain market systems

development approach, to create

access to dignified and fulfilling

work opportunities within the

sector for young Ghanaians. The

program also aligns with KIC’s goal

of nurturing the next generation of

leaders, entrepreneurs, start-ups,

and small businesses, to build a

healthier and more diverse

economy that is fueled by local

talent and innovation.

Speaking at the launch,

Benjamin Gyan-Kesse, executive

Director of KIC, said: “This

partnership with the Mastercard

Foundation is a testament to KIC’s

tangible achievements over the

past six years, and a nod to the

transformation we are bringing to

Ghana’s agriculture sector. As an

organization, we are driven by the

determination to be the power

behind the innovations that will

shape Ghana’s agriculture sector.

We want to back ideas that

transform communities and we

want to impact the lives of all the

individuals associated with our

programs. We are proud to have the

Mastercard Foundation supporting

our vision and helping us make a

difference across the country.”

KIC has also led bold initiatives

within Ghana’s agriculture sector

and supported young

entrepreneurs driving innovative

business models within the sector.

More than 100,000 farmers have

been impacted by Agri-Tech and

agribusinesses supported by the

KIC.

The Center has now evolved

into an Independent non-profit

organization, able to partner with

other organizations and

foundations to support its work.

• Continued on Back Page

Passage of E-levy is a

spiritual breakthrough

— Finance Minister

The Finance Minister,

Mr. Ken Ofori Atta

says the passage of

the controversial e-

levy is a spiritual

breakthrough for the country.

The e-Levy was passed on

Tuesday, March 29, 2022, in the

absence of the Minority MPs,

who had walked out before the

Bill was considered at the second

reading stage.

The Minority had complained

that it had been taken

by surprise by the unexpected

consideration of the levy.

The e-levy was not listed in

Parliament’s business statement

for this week.

The Minority MPs later

walked out of Parliament before

the second reading of the Bill.

In an interview with Atinka

TV after the President delivered

the State of the Nation’s Address

2022 yesterday, Mr. Ofori Atta

said with the passage of the e-

levy, he foresees a major transformation

of the country.

“I foresee just a major transformation.

And I think really,

yesterday in my view, as a spiritual

person, it [passage of the

Bill] was a breakthrough for us.

foresee just a

major

transformation.

And ““I

I think really,

yesterday in my

view, as a spiritual

person, it

[passage of the

Bill] was a

breakthrough for

us. We can’t have

one day in which

is a President’s

birthday, in which

you will do the

first interchange in

our country in the

North, in which E-

levy passed, in

which the Black

stars also win.

We can’t have one day in which

is a President’s birthday, in

which you will do the first interchange

in our country in the

North, in which e-levy passed,

in which the Black stars also

win. If we begin to belittle and

not realize the faithfulness of

the Lord, where we are going? I

think we are making a major

mistake,” he said.


Full Speech: President Akufo-Addo’s

2022 State of the Nation Address

MeSSAGe On The State

Of The Nation By The

President Of The

Republic, Nana Addo

Dankwa Akufo-Addo,

On Wednesday, 30th March 2021, At

Parliament house, Accra.

It is always an honour and a pleasure

to be back here, where I was a three-time

Member, to give a Message on the State of

the Nation, as required by the

Constitution.

Mr. Speaker, I hope you will forgive

me if I begin by asking Members of the

house to join me to salute the

management, technical and playing

teams of the Black Stars, who, against the

odds, beat the Super eagles of Nigeria in

Abuja yesterday. Their qualification for

the World Cup in Qatar has brought so

much joy to Ghanaians, and we are

looking forward to an outstanding

performance in Qatar.

In accordance with protocol and

convention, it is good to see that First

Lady Rebecca Akufo-Addo, Vice President

Mahamudu Bawumia, Second Lady

Samira Bawumia, Spouse of Mr. Speaker,

Madam Alice Adjua Yornas, Chief Justice

Anin Yeboah, Spouse of the Chief Justice,

Madam Phyllis Ofori, and Justices of the

Supreme Court, Chairperson Nana Otuo

Siriboe II, and Members of the Council of

State, Chief of Defence Staff Vice Admiral

Seth Amoama, Inspector General of Police

Dr. George Akuffo-Dampare, and Service

Chiefs, are all present. Mr. Speaker, the

house is duly honoured by the welcome

attendance, virtually, of the former

President of the Republic, his excellency

John Agyekum Kufuor, former First Lady,

her excellency Nana Konadu Agyemang

Rawlings, and the Dean and Members of

the Diplomatic Corps.

Mr Speaker, from my vantage point as

President of the Republic, from the focused

point as head of government, from the

enviable position of a husband, a father and a

grandfather, I know that there is a general

sense of anxiety in our nation at the moment.

The Ghanaian people are anxious about

the economy, the cost of living, income levels,

jobs for young people, and even about issues

on which we all thought we had achieved a

national consensus.

When some amongst us are raising

questions about the certainties on which we

are building the state, it is not surprising that

worries about the stability of the government

would become cause for heightened tension in

the nation.

Mr Speaker, two years ago to the day, we

were in the midst of a lockdown in the main

metropolitan centres of our country. We were

truly in the midst of the unknown. It took a

while before it even got a name, but a

pandemic it was, and the only certainty about

it was that nobody knew very much about it.

The scientists, the health experts and the

World health Organisation were all united in

their view that the virus would cause a lot of

devastation.

The world before COVID now seems such

a long time ago, and the trauma of a world

ruled by a pandemic has changed all our

perspectives. Back in March 2020 when the

first cases of COVID hit our country, we and

the rest of the world were in unchartered

territory, fear and sheer terror gripped our

land. Probably, to future generations, it will

look quite obvious what should have been

done, but, two years ago, it felt like we had

fallen into a dark, malicious and terrifying

abyss.

We could not have been prepared for the

catastrophe that hit us, even the

richest economies with the most

sophisticated structures were

unprepared.

Maybe some of us have forgotten what

the experts were predicting at the time. Our

health and medical infrastructure was

woefully inadequate, and we would not be able

to cope. There were going to be piles of dead

bodies strewn across the streets of Africa.

There was a general consensus that we

should spend all our energies and resources on

protecting lives. I remember, for example, the

discussions about PPes two (2) years ago;

nobody was asking or was interested in how

much they cost; just find them for our health

workers and that was the only consideration.

I wonder how many people remember the

cost of the first face shields and nose masks

that came into our country.

I took the decision we would prioritize the

saving of lives, and, then, we would get

together to rebuild our economy. Nobody

imagined the devastation would be so

widespread and last so long.

We have had our share of COVID deniers

and conspiracy theorists, but, it is fair to say,

Mr Speaker, that our management of the

COVID outbreak has been exemplary, and has

been so acclaimed by the world. And with the

great mercies of the Almighty, we have saved

lives. Indeed, the total number of deaths we

have sadly recorded, one thousand, four

hundred and forty-five (1,445), represents a

miniscule fraction of the total number of

deaths on the African continent, 0.6%.

I remember, a year ago, we were in the

midst of the second wave of covid infections

and deaths; there was widespread fear; again

there was consensus we should concentrate all

attention and resources on protecting lives.

By that time, a little more was known

about the virus and the anxiety had shifted to

the provision of vaccines. We moved rapidly to

“There was a general

consensus that we

should spend all our

energies and

resources on

protecting lives. I

remember, for

example, the

discussions about PPEs

two (2) years ago;

nobody was asking or

was interested in how

much they cost; just

find them for our

health workers and

that was the only

consideration.

secure the provision of vaccines first for the

frontline officials and workers and those most

at-risk, and then to the general mass of the

population, always relying on the current

scientific thinking.

We had to learn some very hard lessons,

and our belief in the need for self-sufficiency

was reinforced when vaccine nationalism was

played out blatantly by the rich and powerful

countries. Mr Speaker, the Presidential Vaccine

Manufacturing Committee, which I set up to

respond to this obvious deficiency, has put in

place a comprehensive strategy for domestic

vaccine production, and the establishment of a

National Vaccine Institute to implement the

strategy, which will enable us to begin the first

phase of commercial production in January

2024. A Bill will shortly be brought to you, in

this house, for your support and approval for

the establishment of the National Vaccine

Institute.

This pandemic exposed other

shortcomings of our country, which have,

undoubtedly, contributed to the anxieties that

have befallen the nation.

Agenda 111 was born out of this necessity

to address some of these shortcomings. At the

normal rate of growth, we are not likely to

make up the deficit in our health facilities

infrastructure for a very long time. hence, the

need for a special, dedicated programme of

infrastructural development. We are

undertaking the construction of 111 entities,

which comprise standard 100-bed district

hospitals for one hundred and one (101)

districts without hospitals, with

accommodation for doctors and nurses; six (6)

new regional hospitals for each of the six (6)

new regions; the rehabilitation of the effia-

Nkwanta hospital in the Western Region; one

(1) new regional hospital for the Western

Region; and three (3) psychiatric hospitals for

each of the three (3) zones of the country, i.e.

North, Middle and Coastal. It is an ambitious

project, which must and will be done, and

which will create some thirty-three thousand,

nine hundred (33,900) jobs for construction

workers, and, on completion, some thirty-four

thousand, three hundred (34,300) jobs for

health workers.

Mr Speaker, I have to report that, like all

major construction projects, it is evident that

the initial schedule we gave for the

completion of Agenda 111 was overly

ambitious. Identifying suitable sites around

the country, for example, has turned out to be

even more problematic than had been

anticipated. I am able to say that a great deal of

the preparatory work has now been completed,

and work has started at eighty-seven (87) of the

one hundred and eleven (111) sites. I have been

assured that preliminary work on the

remaining twenty-four (24) sites is ongoing.

We have every intention of seeing this project

through to a successful end, which will enable

me to commission all one hundred and eleven

(111) hospitals before I leave office on 7th

January 2025.

Mr Speaker, we have saved lives and fared

much better than we had feared and the

experts predicted, but the consequences of

lockdowns, border and business closures, and

unplanned expenditures have combined to

have a devastating impact on our economy.


The unplanned expenditures

included, but were not limited to,

the recruitment, on a permanent

basis, of fifty-eight thousand, one

hundred and ninety-one (58,191)

healthcare professionals, and the

payment of extra incentives to our

frontline health workers.

It took an unbudgeted Gh¢1.9

billion to ensure that our children

and teaching staff went back and

stayed in school safely. Some,

including a few in this honourable

house, went as far as to accuse the

government of trying to kill

Ghanaian children when we

introduced the controlled school

re-openings. I might add here that,

in some countries, school closures

have lasted for twenty (20) months,

and children are only now going

back to school. Our children did not

lose a single academic year.

We provided nearly five

million (5 million) households and

over ten million (10 million) people

with electricity and water

subsidies at the time they were

most needed.

In all, data from the Ministry of

Finance tells us that an amount of

Gh¢17.7 billion (or 4.6% of GDP) has

been spent in containing the

pandemic since 2020.

Mr Speaker, the NPP

government came into office with

a plan to build a resilient economy

and set us on the path to

prosperity. We were on course, and

our performance between 2017 and

the beginning of 2020

demonstrates we were making

rapid progress. Indeed, in 2017, 2018

and 2019, we recorded average

annual GDP growth rates of 7%,

making us one of the fastest

growing economies in the world.

We grew the economy from the

cedi equivalent of fifty-four billion

United States dollars ($54 billion) at

the end of 2016 to the cedi

equivalent of seventy-two billion

dollars ($72 billion) in 2020, a

thirty-three percent (33%) increase.

Then COVID arrived.

This is not something that

anyone could have planned for, and

the consequences are there for us

all to see around the world. The big

and established economies of the

world have been knocked off their

planned trajectory. Countries,

where budget deficits were

unknown and prohibited by law,

suddenly had to accept huge

deficits to underwrite social

cohesion.

The economic devastation of

COVID has, since the beginning of

this year, been further aggravated

by the Russian invasion of Ukraine,

which has worsened the economic

outlook of the entire world. We, in

Ghana, have not escaped this

development, and the

consequences are being felt in

rising living costs at our markets

and at fuel stations. The terrible

events in Ukraine have a direct

impact on our lives here in Ghana.

Mr Speaker, thirty percent (30%) of

our wheat flour and fertilizer

imports come from Russia. Sixty

percent (60%) of iron rods and

other metal sheets are imported

from Ukraine, and almost twenty

percent (20%) of Ghana’s

manganese is shipped to Ukraine.

The bombs might be dropping on

cities half a world away but they

are hitting our pockets here in

Ghana. even so, we have managed

to ensure that fuel supplies have

not been disrupted, unlike in

several other parts of the world.

Last week, the Minister for

Finance spelt out, in detail, to the

country the economic and fiscal

difficulties we face, and the raft of

measures we are introducing to

bring relief and restore us to

economic growth.

The measures that have been

announced by the Minister for

Finance are meant to demonstrate

that we are aware that we are in

difficult times, and we are

addressing the situation. The belttightening

measures being set for

members of the executive have

been elaborated within this

context.

This government remains alive

to its responsibilities to the

Ghanaian people. The difficulties of

the time notwithstanding, we

intend to continue to grow this

economy and bring prosperity. That

will only happen when we

continue to invest in the future.

Our children will continue to

be educated and be equipped to run

a modern and digitalized economy.

The Free ShS and Free TVeT are the

best vehicles we have devised to

take us to the realization of our

goal of an educated and skilled

workforce. The computerized

school placement is currently

ongoing and the latest batch of JhS

students will soon embark on their

Free ShS and Free TVeT education.

The TVeT institutions are

being upgraded and equipped to

enable them train the increased

numbers of children that we want

to be attracted to that sector to

meet the modern needs of our

economy. This year, I will be

commissioning some of the thirtyfour

(34) refurbished National

Vocational and Technical

Institutes (NVTI’s) across the

country. The refurbishment

comprised the construction,

rehabilitation and equipping of

laboratories, workshops, additional

classrooms, hostels, and

administrative offices.

Within the next few months,

the construction of five (5)

technical colleges will begin in

various parts of the country. Three

technical institutes will be

upgraded to tertiary status. The

initial phase for the construction

of nine (9) TVeT campuses will

commence next month in

Bosomtwe, Akyem Awisa, Boako,

Kenyasi, Patuda, Dambai,

Larabanga, Guabuliga and Tolibri.

These campuses will have

academic facilities, workshops,

laboratories, hostels and staff

accommodation, and provide

further access for training.

Government is in the process

of securing financing for the

construction of five (5) STeM

universities in five (5) new Regions,

that is Western North, Savannah,

North east, Ahafo and Oti regions.

Steps are being taken to turn the

planned Bunso campus of the

University of environment and

Sustainable Development into a

standalone, independent

University focused on the study of

engineering. Construction of this

campus is set to begin within the

next three (3) months.

Mr. Speaker, there is great

potential for our people in the

creative arts, fashion, and film

industry. We want to unleash the

creativity, enterprise and

innovation of our youth, by giving

them education and skills training

in the Creative Arts. The Creative

Arts Senior high School, in

Kwadaso, whose construction is

currently seventy percent (70%)

complete, will serve as a beacon for

many young and talented people,

seeking a fulfilling career in this

field.

Mr. Speaker, I recall, with

nostalgia, the end of year 2019, just

before the onset of COVID, when

the world came to Ghana in that

“December to Remember”, and we

were the happy place to be at the

end of our Year of Return. Ghana

continues to lead the push for

African renaissance through the

decade-long ‘Beyond the Return

Project’. The “December in Gh”

component of this project has

positioned Ghana as the

destination to visit every

December. Last year, the country

recorded some six hundred and

twenty-three thousand, five

hundred and twenty-three (623,523)

visitors, up from the three hundred

and fifty-five thousand, one

hundred and eight (355,108)

visitors, the year before, signifying

a marked rebound of our tourism

sector. We should recapture those

glorious moments and build on

them as we work hard to reclaim

what we lost to the COVID years.

Government is, therefore,

undertaking a comprehensive

renovation and modernization of

tourist attractions across the

country, such as the Cape Coast

and elmina Castles, Kwame

Nkrumah Memorial Park, which

will enable us position Ghana as

the preferred tourism destination

in West Africa.

Mr Speaker, Government is

determined to make our country

the place where hard work pays

good dividends. We have made

substantial investments in the

agriculture sector, for example,

because we recognise this is where

a substantial number of our people

make a living.

The successes of the

Programme for Planting for Food

and Jobs have transformed the

lives of many farmers around the

country. I am glad to announce

that the Tono Irrigation Dam has

been fully rehabilitated, and is back

to life and fully operational, and is

serving the needs of many farmers

in the areas around the dam.

The result of significant

investment by my government in

the Ghana Commercial Agriculture

Project has resulted in the

availability of a total of thirteen

thousand, one hundred and ninety

(13,190) hectares of additional

irrigable land, through the

rehabilitation of Tono, Kpong Left

Bank and Kpong Irrigation

Schemes, for rice and vegetable

cultivation. Immediate benefits

arising from the scheme include

improved rice yields increasing

from 4.5 tons per hectare to 5.5 tons

per hectare, leading to increased

production and growth in farm

incomes. This has benefitted some

fourteen thousand, two hundred

and sixty-four (14,264) smallholder

beneficiaries directly, creating

some forty thousand (40,000) jobs

along several value chain activities

generated from the irrigation

schemes.

In particular, at the Kpong Left

Bank Irrigation Project,

Government, through the Ministry

of Food and Agriculture, has

recently engaged nine (9) large

scale investors in addition to

smallholder farmers at the Kpong

Left Bank Irrigation Project

(KLBIP) who would be producing

rice, maize and vegetables on one

thousand, three hundred hectares

(1,300ha), using modern

production technologies to achieve

improved productivity and

production, within the next three

(3) months.

Government has also invested

in the vegetable sector, through the

Ghana Peri-urban Vegetable Value

Chain Project. We have provided

irrigation infrastructure covering a

total of five hundred and forty-one

(541) hectares, which directly

impacts vegetable farmers in the

Greater Accra Region. In addition

to these farmers, we have also

provided inputs and technical

support to vegetable farmers at

hikpo in the Volta Region and

Asokwa in the Ashanti Region. The

project has provided off-taker

arrangements for both domestic

and international markets.

The construction of eighty (80)

warehouses, with a combined

storage capacity of eightythousand

metric tonnes,

(80,000MT), has been completed,

and their entry into the food

production chain is offering better

protection to the harvests of

farmers.

There is no doubt that but for

the vigorous interventions we have

made in agriculture in the past five

years, which have made us more

self-reliant in our food needs, our

country would have been at much

greater risk as the fallout from the

dramatic worldwide increases in

freight charges hit prices in our

markets and on our supermarket

shelves.

Mr Speaker, the cocoa industry

has marked a lot of interesting and

• Continued on Page 8


Full Speech: President Akufo-Addo’s

2022 State of the Nation Address

• Continued from Page 7

far-reaching achievements this past

year, including producing one

million, and forty-seven thousand,

three hundred and eighty-five

tonnes (1,047,385), the highest ever

recorded in Ghana’s history.

Together with our counterparts in

Cote d’Ivoire, we have addressed the

inequalities in the international

marketing system of cocoa by

paying a Living Income Differential

of four hundred United States

dollars ($400) per tonne of cocoa to

our farmers. This is a remarkable

initiative that cushions the income

of the Ghanaian cocoa farmer, the

backbone of our economy. I want to

draw attention to one other

innovation in the industry that

appears to be a small item. A nonadjustable

electronic weighing scale

has been introduced for the

purchase of cocoa from our cocoa

farmers. This scale, which was

introduced at the start of the cocoa

season in October, has been

approved by the Ghana Standards

Authority, it cannot be tampered

with by purchasers.

Not many people outside the

cocoa industry will realise the

significance of the introduction of

this little bit of technology, but it

brings to an end one of the main

sources of distrust between cocoa

farmers and officialdom. The age-old

belief/suspicion that cocoa farmers

are being cheated by tampering

with the weighing machines has

come to an end.

The same use of technology to

attract more young people into

agriculture is continuing with the

training of five hundred and thirtyseven

(537) youth in the production

of high value vegetables using

Greenhouse technology. One

hundred and ninety (190) of them

have been on an 11-month

internship in Israel, and they are

back with a lot of enthusiasm. We

are expecting great things from

them.

Indeed, Mr. Speaker, we are

expecting greater things from the

greater use of technology and the

digitalization of our economy as a

whole. I am happy to report that the

National Identification Card, the

Ghana Card, has finally been

integrated into our everyday lives as

a cradle-to-grave necessity.

Never again will it be that

someone, born in this country, will

live a full life, die and be buried,

without any record of his or her

existence. The operations of the

Births and Deaths Registry are

finally being digitised to make sure

that documents issued from that

department are accorded the respect

they should have.

every child born in this country

will be registered, and the date of

birth registered will remain your

date of birth throughout your life.

There will be no school age, no

football age, no SSNIT age, and no

official age. When we register for

National health Insurance, the

details of our identification will be

the same as the details on a driving

licence, a passport and yes, on our

tax identification.

Today, we all have addresses at

which we can be identified, even if

we live, unfortunately for the time

being, in a kiosk. And when we die,

that inevitable rite of passage will be

recorded to mark the end of our life.

Mr Speaker, it is not enough that

the state collects all this

information, it is critical that every

citizen is able to benefit from the

digitisation process. The benefits

range from being able to give

directions to our address for

deliveries and being able to gain

access to government services

without having to go to the

Ministries. The Rural Telephony

Project, being undertaken by GIFeC,

is working to fill the void created by

the telephone operator’s inability or

unwillingness to extend their

services to areas they deem

uneconomical to operate. It is

important to extend basic telephone

voice and data connectivity to every

part of the country, so we leave no

one behind.

Mr Speaker, I have spoken on

other occasions about the

digitization of port operations or

what we all now call the paperless

port. I am glad to say that the initial

problems have largely been

overcome, and we are witnessing

the advantages in faster processes at

the port and less opportunities for

corruption with the reduction of

human interface. ICUMS, when it

was introduced, provoked a lot of

controversy. At the moment, we are

seeing the benefits. Indeed, Customs

revenue, prior to the

implementation of ICUMS, for the

period June 2019 to May 2020, stood

at Gh¢11.25 billion. Between June

2020, the start of ICUMS, and May

2021, teething challenges, illconsidered

propaganda and the

impact of COVID-19 on global trade

notwithstanding, customs revenue

has increased by 27.6% to Gh¢14.36

billion. Indeed, customs revenue for

2021 stood at Gh¢16.08 billion, as

opposed to Gh¢12.03 billion in 2019

when ICUMS had not been

implemented.

The digitisation of hospital

records has started, through the

Lightwave health Information

Management System. We started

with the Teaching hospitals, and we

plan to work in a phased approach

to cover every health facility in

Ghana. I am sure this will be a

welcome innovation for all.

We have learnt the very hard

way the first step to prosperity in

Africa is for our countries to trade

among each other. It is the reason

we campaigned for and supported

and proudly host the continental

office of the AfCTA. Trading under

the African Continental Free Trade

Agreement (AfCFTA) officially

commenced on 1st January, 2021,

and Ghana was the first country in

Africa to establish Customs

Procedure Codes to facilitate trading

under the AfCFTA. We have

established a National AfCFTA

Coordination Office to facilitate

activities. We have high hopes that

the AfCFTA office, which we proudly

host, will bring urgency to growing

trade among the African states.

Probably the most significant

step towards making this intra-

African trade possible was taken in

Accra a few weeks ago with the

launch of PAPSS, the Pan-African

Payment and Settlement System.

This is a leading-edge

technology connecting African

banks, payment service providers

and other financial market

intermediaries to enable instant and

secure payments between African

countries.

It means a trader in Ghana can

order supplies in Kenya with cedis

and buy it in Kenyan shillings and

not have to go through dollars or

euros or pounds sterling. This will

simplify the historical complexities

and costs of making payments

across African borders and provide

operational efficiencies to open up

vast economic opportunities for all

stakeholders.

It means we have a simplified

process that reduces the costs and

complexities of foreign exchange for

cross-border transactions between

African markets and enables

innovation in cross-border trade and

access to new African markets.

Mr. Speaker, if we campaign so

hard for the opening up of trading

among African states, we had better

have something to sell. I am glad to

report that despite the adverse

effects of the COVID-19 Pandemic

on firm-level production and

productivity as well as the

disruptions in global supply chains,

the manufacturing subsector

showed significant recovery last

year. Manufacturing recorded an

average growth of 7.0% in the first

half of 2021 compared to 0.7% in the

corresponding period in 2020 at the

beginning of the pandemic.

Our flagship One District One

Factory (1D1F) Initiative is being

implemented, with business

promoters being empowered and

supported either to establish new

factories or to transform existing

manufacturing enterprises to

contribute significantly to job

creation across the country.

Mr. Speaker, through the 1D1F

initiative, the made-in-Ghana label

is being stamped on a wide range of

products proudly manufactured in

Ghana. Out of a total of two hundred

and seventy-eight (278) 1D1F projects

at various stages of implementation

in all the sixteen (16) regions, one

hundred and six (106) factories are

currently operational, one hundred

and forty-eight (148) are under

construction, while twenty-four (24)

projects are at mobilization stage.

Mr. Speaker, in order to bring the

youth on board the 1D1F

Programme, fifty-eight (58) out of

the two hundred and seventy-eight

(278) 1D1F Projects have been

developed as enterprises fully owned

by youth groups, with direct

Government support. each of these

1D1F Youth companies are owned by

between forty (40) and fifty (50)

youth as shareholders.

In addition, five (5) medium

scale state-of-the-art agroprocessing

Common-User Facilities

(CUFs) have been established with

direct support from Government

and are owned by various groups of

farmers, whose farming operations

had previously been undermined

through lack of processing facilities.

These farmer-owned companies

have been established in five (5)

Districts, namely Dormaa West,

Savelugu, Sefwi Akontonbra, Sekyere

Central and Tarkwa Nsuaem. They

cover oil palm processing, rice

milling and the processing of maize

into maize grits.

Mr. Speaker, quite a number of

global vehicle manufacturing

companies have set up assembly

plants here in our country, and

started producing vehicles for our

market and for the West African

market. The well-defined Ghana

Automotive Development Policy we

outdoored in August 2019 has

facilitated this welcome

development.

Since June 2021, Toyota and

Suzuki brands of vehicles are being

produced here, commencing with

the production of hilux Pickup and

Swift models. VW and Sinotruck,

which commenced commercial

operations in 2020, have continued

to assemble their brands of vehicles

and are enjoying significant local

patronage.

In addition, a new state-of-theart

assembly plant with capacity to

assemble 5,000 new vehicles per

annum has been established by

Nissan in Tema, which is currently

producing Nissan and Peugeot

brands of vehicles for the Ghanaian

and West African markets. I will

have the pleasure to commission

this new plant in Tema tomorrow.

• To be Continued

Thursday, Tuesday, March March 31, 1, 2022

BANKING AND FINANCE

Why Ghana needs a

new financial sector

regulation architecture

There is ample evidence that

the existing financial sector

regulation architecture in

Ghana is not fit-for-purpose-

GhANA’S financial sector is in

crisis. A crisis occasioned by

the collapse of over 300

financial institutions; and

which has affected every

division of the financial sector. Universal

banks, savings and loans companies,

microfinance companies, capital market

institutions, and insurance companies

have been impacted.

While majority of the collapsed

institutions were licensed and regulated, a

few were unlicensed and ought not to have

been in operation. The fact that the

unlicensed institutions were allowed a free

rein to operate until their eventual

collapse, speaks volumes about the

existing regulatory regime and the safety

of financial consumers.

experts have identified the causes of

the crisis to be: weak regulatory

supervision, unethical behaviour by

managers of the financial institutions, and

poor corporate governance practices. In

the specific case of the unlicensed

institutions, their illegal activities

flourished because of dereliction of duty

on the part of regulators.

The devastation caused by the crisis

has been severe and widespread. Apart

from financial losses, consumer

confidence in the financial sector has been

significantly weakened. Some consumers

have lost their lives as a result of the

trauma of having their life savings locked

up in collapsed institutions.

Unquestionably, there is the need for a

regulatory regime that is fit-for-purpose.

One that prioritizes the need to ensure the

safety of institutions as well as prioritize

the need to protect consumers. Thus, the

necessity of regulatory reform is

imperative.

Presently, the regulators of Ghana’s

financial sector (i.e. Bank of Ghana - BOG,

Securities and exchanges Commission -

SeC, National Insurance Commission –

NIC and National Pensions Regulatory

Authority - NPRA) have through their

actions and inactions demonstrated that

they prioritize Prudential Regulation

(“ensuring financial institutions remain

strong”) to the neglect of Conduct

Regulation (“ensuring the safety and fair

treatment of consumers”).

This lopsided approach to financial

sector regulation has resulted in

consumers suffering unfair treatment and

exploitation at the hands of financial

service providers. examples of the

mistreatment of consumers include:

unfair pricing practices, unconscionable

loan terms, misrepresentation of risks

associated with products, mis-selling,

product pushing, poor handling of

customer complaints, etc.

The reform of financial sector

regulation in Ghana must institutionalize

conduct regulation and afford it the

importance it deserves. This will require

strong commitment from government to

sponsor the needed legislation. This is the

surest way to ensure the financial sector is

safe and works well for all.

State of financial consumer protection

in Ghana

Financial consumers in Ghana

continue to suffer at the hands of financial

institutions because of manifestly weak

market conduct regulation. The present

crisis has further exposed the deep-seated

disregard and lack of commitment to

financial consumer protection in Ghana.

A careful review of the regulatory

interventions and policy prescriptions

that have been implemented or mooted

following the crisis have centered on

“saving the institutions” with very little

focus on “protecting consumers”.

While it is important to protect the

institutions; because the safety of the

institutions has implications for the safety

of consumers’ deposits and investments, it

is equally important to proactively protect

consumers and ensure they are treated

fairly and are not exploited.

Financial consumers are vulnerable

and need to be protected from elements

within the financial sector who would

want to take advantage of this

vulnerability to cheat consumers to rake

By Woelinam Dogbe,

President of the Alliance for

Financial Consumer Protection

(AFCOP)

in abnormal profits.

There is a widespread practice within

Ghana’s financial services industry where

providers; particularly banks and SDIs,

arbitrarily increase fees on products and

services that consumers have already

signed on to. For example, it has become

an annual ritual for banks and SDIs to

upwardly review fees such as account

maintenance fees, card maintenance fees,

transaction fees etc. The only obligation

the central bank has placed on the banks

and SDIs is for them to give customers at

least a 30-day notice period before

implementing the fee reviews.

The point is often made by financial

institutions that, if consumers are

unhappy with the fees being charged, they

are at liberty to switch to another provider.

This argument is at best, disingenuous and

laced with mischief because, as things

stand today, it is very difficult for

consumers to switch banks or SDIs. For

example; banks and SDIs mirror each

other’s pricing; thus, when one bank or

SDI introduces a new fee or increases an

existing fee, the others follow. Therefore, if

a consumer decides to switch, he or she

will only be “jumping from frying pan to

fire”.

Sadly, the regulators who ought to

ensure consumers are treated fairly are

“This lopsided

approach to

financial sector

regulation has

resulted in

consumers

suffering unfair

treatment and

exploitation at

the hands of

financial service

providers.

themselves the guilty party. For example;

the National Insurance Commission (NIC)

recently implemented new pricing

dynamics for motor insurance. The stated

objective was to sanitize pricing practices

and mitigate systemic risks resulting from

price undercutting. Unfortunately for

consumers, the consequence was a steep

increase in premiums.

The steep premium increases priced

out millions of consumers from

comprehensive motor insurance cover.

Consumers were made worse off and were

exposed to severe loss as a result of being

priced out. It took massive public uproar

and resistance from insurance companies

for the NIC to roll back some of the

elements that caused the price hike.

It is important to note that, unfair

pricing is only a minutia of the

mistreatment consumers receive. Others

include issues such as financial

institutions pushing high risk products to

vulnerable consumers. Product pushing

and mis-selling exist but there’s no record

of regulators punishing, naming and

shaming institutions that have engaged in

such bad behaviour.

Best practices in financial consumer

protection in Africa

There are pockets of great examples of

proactive financial consumer protection

across Africa. Some regulators on the

continent are living up to expectation and

doing what is required to ensure

consumers are protected and treated fairly.

One of the shining lights is the Bank

of Zambia (BoZ). The BoZ in September

2018 issued a notice titled “Bank of Zambia

notice to the public on the prohibition of

unwarranted charges and fees directives of

2018”. In the said notice, the BoZ detailed a

list of twenty-six (26) charges and fees that

it had prohibited.

The charges and fees prohibited by the

BoZ included: initial debit card issuance

fees, debit card maintenance and renewal

fees (annual, quarterly or monthly),

commission on turnover activities on

account, automated teller machine (ATM)

surcharges, point of sale (POS) transaction

charges (own bank customer and other

bank customer), charge for balance and

other account inquiries by a customer

over-the-counter or any electronic

platform, among others.

The Central Bank of Nigeria (CBN) is

also worthy of applause. The CBN has

taken some steps to ensure banks in

Nigeria handle customer complaints in a

timely and effective manner. It has

instituted and published a fine grid for

improper handling of customer

complaints and delays in resolving

customer complaints. The CBN’s policy of

naming and shaming is commendable.

When consumers see and feel that the

regulator is acting and sanctioning errant

institutions, their confidence in the

financial system grows. The CBN recently

sanctioned some errant banks and fined

them as much as 2 million Naira (circa

USD5,200) for breaching various consumer

protection mechanisms.

Another regulator leading the way is

the Central Bank of egypt (CBe). When the

coronavirus pandemic hit, the CBe

• Continued on Page 10


• Continued from Page 9

championed several initiatives that not only

focused on keeping the institutions afloat,

but also rolled out deliberate interventions

to bring tangible relief to consumers.

The CBe instructed banks to cancel ATM

withdrawal fees and points of sale (POS) fees

for six months. It also instructed banks to

give 6 months repayment holiday to

individuals and businesses impacted by

COVID-19. Also, the CBe instructed the

suspension of late fees (penalty interest).

Furthermore, in an effort to reduce cash

handling, all bank transfers within egypt

were exempted from fees and charges.

Challenges with Ghana’s financial

sector regulation architecture

There is ample evidence that the

existing financial sector regulation

architecture in Ghana is not fit-for-purpose.

The recent crisis has badly exposed this fact.

Aside the loopholes in prudential regulation

that are at the root of the crisis, the neglect

of conduct regulation is a major cause for

concern. This needs to be addressed, lest we

risk another crippling crisis.

The major drawbacks of Ghana’s

existing financial sector regulation

architecture are:

The financial sector has become

entwined; but still operates with siloed

regulators

The financial sector regulators are

biased towards prudential regulation and

have limited capacity for conduct regulation

The financial sector lacks an effective

institutional mechanism to set and enforce

market conduct standards

Financial consumers in Ghana continue

to suffer at the hands of financial

institutions because of manifestly weak

market conduct regulation

Ghana’s financial sector has evolved to

the point where banking halls have become

distribution points for non-bank financial

products. Today, banks are distributing

insurance, capital market, and pension

products. even mobile money operators are

distributing banking, insurance and

pension products. Thus, the financial sector

has become vastly entwined. however,

regulation has lagged behind the sector’s

evolution. The sector still has fragmented

regulators (i.e. BOG, SeC, NIC, and NPRA)

operating in silos and overseeing both

prudential and conduct regulation for their

respective industries.

having an entwined sector with siloed

regulators presents peculiar dangers to

consumers. It becomes a complicated

proposition for consumers when, for

example, they buy a non-bank product (i.e.

insurance or capital market product)

through a bank and are faced with a

challenge that needs a regulator’s

intervention to resolve. Or; when a

consumer buys a pension product through a

mobile money operator and is unfairly

treated, knowing which regulator to

approach can be unsettling and stressful.

Furthermore, when a novel ponzi

scheme emerges, the siloed regulators pass

the buck and are hesitant to take

responsibility to stop harm to consumers. A

classic example is the Menzgold scam that

swept through the country a few years ago;

and left in its wake millions of victims. In

the Menzgold case, instead of the BOG and

SeC taking decisive measures to shut down

the scam, they pussyfooted and took to

issuing statements to say Menzgold was not

licensed to operate.

Secondly, the fact that the current

architecture does not prioritize consumer

protection is abundantly evident. Unlike in

best practice examples from Zambia, egypt

and Nigeria where the BoZ, CBe and CBN

respectively have been proactive in

implementing effective measures to protect

consumers and ensure they are treated

fairly, the opposite is the case in Ghana.

The regulators in Ghana have adopted a

laidback attitude towards the subject and

have in some cases merely designated units

as being responsible for market conduct, in

an attempt to window dress the issue.

Thirdly, the financial sector lacks an

institutional mechanism to set and enforce

market conduct standards across the sector.

As a result of the lack of standards, actions

and inactions of financial institutions and

regulators that are injurious to consumers

are not flagged and nipped in the bud. Also,

since there are no standards, bad conduct is

allowed to fester to the detriment of

consumers.

The absence of standards also breeds the

consequence of consumers not being aware

of their rights and remedies available to

them. Thus, they are unable to shield

themselves from exploitation and unfair

treatment. Consumer education is poor; and

mostly non-existent, because the regulators

have shunned this duty of care.

Political Commitment

The reform of financial sector

regulation can only happen with unalloyed

commitment from government. The

intricacies of Ghana’s political system make

it such that, the required legislation to birth

the reforms needs government backing and

sponsorship.

It is therefore welcome news that

Ghana’s main opposition party, the National

Democratic Congress, through its leader,

h.e. John Mahama, has promised to

“establish a Financial Services Authority

that will be responsible for ensuring that

consumer markets work for consumers,

providers and the economy as a whole” if

voted into power.

It is hoped that the proposals made in

this article will be adopted and incorporated

in the reform of Ghana’s financial sector

regulation architecture.

A proposed fit-for-purpose financial

sector regulation architecture for Ghana

To forestall future crisis in the financial

services sector and advance consumer

protection, an effective and fit-for-purpose

regulation architecture is critical. It should

be a regulation architecture that proactively

identifies problems and nips them in the

bud, one that severely punishes wrong

doing, names and shames, and one that

resolves the imbalances between prudential

regulation and conduct regulation.

It is against the foregoing background

that the following proposals are made:

Decouple prudential regulation and

conduct regulation. This calls for discarding

the current model that warehouses

prudential regulation and conduct

regulation in the same institutions. An

effective and efficient decoupling of

prudential regulation and conduct

regulation will resolve the challenges

enumerated.

Task the existing industry regulators

(i.e. BOG, SeC, NIC and NPRA) exclusively

with responsibility for prudential

“

The charges and fees

prohibited by the BoZ

included: initial debit card

issuance fees, debit card

maintenance and renewal

fees (annual, quarterly or

monthly), commission on

turnover activities on

account, automated teller

machine (ATM)

surcharges, point of sale

(POS)transaction charges

(own bank customer and

other bank customer),

charge for balance and

other account inquiries by

a customer over-thecounter

or any electronic

platform, among others.

regulation. Thus, the responsibility for

conduct regulation must be taken away

from them.

establish a single independent conduct

regulator. The new entity will be the sole

regulator of market conduct across the

entire financial services sector; i.e. banking,

insurance, securities and pensions.

The proposed architecture is a unique

adaptation of the Twin Peaks Model. In the

typical twin peaks model that exists in

counties such as the United Kingdom,

Netherlands, New Zealand, Australia, and

South Africa among others, there are two

regulators – one focused on prudential

regulation of the entire financial services

sector and the other regulator focused on

conduct regulation of the entire financial

services sector.

In the United Kingdom, for example, the

Prudential Regulation Authority (PRA) and

the Financial Conduct Authority (FCA) are

responsible for prudential regulation and

conduct regulation respectively. The two

entities (PRA and FCA) were formed in 2013

in a wave of regulation reforms following

the 2007 financial crisis. hitherto, a single

entity was responsible for both prudential

and conduct regulation until the split in

2013.

In the proposed model for Ghana, each

of the industries (banking, insurance,

capital markets and pensions) within the

sector will have independent prudential

regulators. There may be too much

disruption if an attempt is made to have a

single prudential regulator for the entire

sector at this point. Perhaps, in the next

phase of reforms, having a single prudential

regulator for the sector may be considered.

For now, the focus must firmly be on a single

conduct regulator.

The benefits of the proposed model –

having a single independent conduct

regulator and industry-specific prudential

regulators – are evident.

The industry prudential regulators will

focus on keeping the institutions sound.

They will have the mandate to set

prudential requirements and to ensure

compliance. In addition, they will be clothed

with the power to license institutions for

their respective industries.

The single independent conduct

regulator will ensure that consumers are

protected across the entire financial services

sector. It will ensure institutions conduct

themselves properly in the market. It’s core

focus will be on areas such as: product

suitability and safety, fair pricing practices,

resolution of customer complaints, among

others.

No new product can be introduced onto

the market without the prior approval of the

conduct regulator. Neither can an approved

product be modified without the express

approval of the regulator. Before the conduct

regulator approves a product, it must

ascertain that the institution submitting

the product for approval has been duly

licensed by the appropriate prudential

regulator. Such a regime will prevent scams

like Menzgold, DKM, and the others from

taking root.

The independent conduct regulator will

have the power to stop an institution from

operating in the market if it deems its

products or practices to be harmful to

consumers or other market players. More

importantly, it will have the power to

prosecute institutions and/or individuals if

their activities pose a danger to consumers

or if they are found to be behaving badly or

to have behaved badly.

With the proposed single independent

conduct regulator, consumers will have a

single point of contact for all complaints or

challenges they have with any financial

institution. Thus, the challenge of having to

contend with many regulators in an

entwined financial sector will be

eliminated.

The proposed regulator will set market

conduct standards, proactively police the

market to ensure it is safe for all

participants, punish, name and shame

offenders, and educate consumers on their

rights as well as on how to protect

themselves in the market.

Operationalizing the proposed

architecture will be easy to do. Marshalling

the needed human capital to staff the

proposed independent conduct regulator

should not be difficult. The various industry

regulators currently have some staff who

ostensibly are tasked with monitoring

market conduct. These staff can be pulled

out to form the nucleus staff of the new

institution. The nucleus staff would need to

be augmented with professionals with the

requisite technical expertise.

If there’s a silver lining in the crisis that

has hit Ghana’s financial sector, it is that it

presents a golden opportunity to reform

Ghana’s financial sector regulation

architecture. The time to act is now!

Distributed by APO Group on behalf of

Woelilnam Dogbe.

Woelinam Dogbe, President of the

Alliance for Financial Consumer Protection

(AFCOP)

The author, Woelinam Dogbe, is the

President of the Alliance for Financial

Consumer Protection (AFCOP). He is a

Chartered Banker, a Financial Sector

Specialist, and a Management Consultant.

He can be reached via wydogbe@gmail.com.

Thursday, March 31, 2022 PAGE 11

Using the EITI Standard

to combat corruption

Lessons from Transparency

International’s mining

research in five countries

eXeCUTIVe SUMMARY

The oil, gas and mining sectors are

some of the world’s most corruptionprone

industries.

1 The renewed focus on combatting

corruption within the extractive

Industries Transparency Initiative (eITI)

provides an opportunity to make

significant changes to benefit the lives of

people in resource-rich countries.

Accountable Mining Programme

Transparency International’s

Accountable Mining Programme

complements existing efforts to improve

transparency and accountability in

extractive industries by focusing

specifically on the start of the mining

decision chain: the point at which

governments grant and award mining

permits and licences, negotiate contracts

and make agreements. The Programme’s

research aims to identify the

vulnerabilities to corruption in the way

the licensing process is designed and

implemented.

Requirement 2.1: Disclosure of the

legal framework Requirement 2.1

obligates implementing countries to

disclose a description of the framework

governing the extractive industries. The

key lessons from the country case studies

are:

• Political instability and unrest can

distort the functioning of the legal

framework that governs the licensing

process by establishing temporary or

alternative arrangements which

potentially allow questionable mining

deals to be made behind closed doors.

• Political donations, particularly

during elections, can influence the design

of the legal framework and decisionmaking

process in favour of the donor.

Recommendations: Actively

disclose any changes to mining laws and

arrangements that are intended to

replace the process set out in the legal

framework; require disclosure of

donations from extractive companies to

enable public scrutiny of improper

influence on laws and decisions.

Requirement 2.2: Disclosure of the

licence allocation process Under

Requirement 2.2, implementing countries

must disclose a description of the process

for transferring or awarding licences, as

well as the criteria used to make the

decision, information about the licence

recipients and any material deviations

from the framework.

The key lessons from the

country case studies are:

• Ineffective coordination among

different government departments and

agencies can mean that the process as

described is significantly more complex

in implementation. This creates potential

for bottlenecks in the process and noncompliance

with evaluation criteria

which can be exploited through

corruption to expedite licence

applications.

• Low institutional capacity is a red

flag that may result in material

deviations from the technical and

financial criteria in the process set out in

the legal and regulatory framework.

Lessons learned and

recommendations for resource-rich

countries Transparency International’s

Accountable Mining Programme research

in over twenty countries found that

transparency and disclosure measures

are critical to combatting corruption

risks. however, transparency alone is not

sufficient to combat corruption. As the

paper demonstrates, additional measures

need to be taken for transparency to

make an effective contribution to anticorruption

efforts.

The paper shares key lessons and

recommendations from the Programme’s

case study countries, and are applicable to

all resource-rich countries, including

those that are members of the eITI.

• Political interference in defining

the terms of reference, the qualification

criteria or in the selection of suitable

applicants can give favoured companies

an improper advantage and undermine

the integrity of the licence allocation

process.

Recommendations: Improve

“

Political instability

and unrest can distort

the functioning of the

legal framework

that governs the

licensing process

by establishing

temporary or

alternative

arrangements which

potentially allow

questionable mining

deals to be made

behind closed doors.

coordination and communication

between government departments

responsible for the licensing process;

increase expertise and funding of

licensing agencies; and strengthen

checks and balances on decision-making.

Requirement 2.3: Maintenance of a

publicly available licence register

Requirement 2.3 specifies that

implementing countries must maintain a

publicly available register with detailed

information about the licences granted.

The key lesson from the

country case studies is:

• Gaps in the licence register mean

that key details about who has been

granted a licence, where and for how long

are hidden from public view, allowing

corrupt dealings and favouritism to go

undetected. Recommendation: Keep the

licence register easy to access, complete

and up to date to allow members of the

public to view critical details about

licences granted.

Requirement 2.4: Disclosure of

contracts and licence agreements

Contract and licences entered into or

amended from 1 January 2021 must be

disclosed to comply with Requirement

2.4.

The key lesson from the country

case studies is:

• Lack of access to licence

agreements limits the ability of citizens

to scrutinise the adequacy of the terms

and conditions, and to detect and hold

companies to account for any actions that

do not comply with fiscal, social and

environmental obligations.

Recommendation: ensure the full

text of licence agreements, including

their terms and conditions is publicly

accessible.

TRANSPAReNCY

INTeRNATIONAL USING The

eITI STANDARD TO COMBAT

CORRUPTION

• eITI MSGs should prioritise

systematic disclosure to ensure that

relevant, up-to-date information needed

to help prevent and detect corruption is

transparent and readily available on an

ongoing basis, not just reported on a oneoff

basis each year.

• eITI MSGs should require

disclosure of political donations by

extractive companies and recipients

within the framework of the eITI.

• eITI MSGs should consider capacity

building activities on the legal

framework among implementing

officials and accountability actors as a

critical step towards combatting

corruption in the licensing process.

• eITI MSGs should establish and

resource a technical working group that

may involve relevant actors from

different government departments to

improve government coordination

(including land, environment, water

resources, forestry etc.).

• eITI MSGs should map out the key

elements of the anti-0corruption legal

framework in their country such as

corruption offences, authorities

responsible for investigating and

prosecuting corruption, the penalties and

how these apply to the licensing process.

eITI Multi-Stakeholder Groups

(MSGs) responsible for implementing the

eITI in their country can use the eITI

framework to reduce corruption in the

extractive sector.

This is the executive Summary of a

discussion paper by the same name

authored by Michael Odei erdiaw-Kwasie

and Lisa Caripis.


BACK

PAGE

Mastercard, Kosmos train next

generation of young entrepreneurs

• Continued from page 5

Board Chairman of KIC, Senior

VP and head of the Ghana

Business Unit at Kosmos energy,

Joe Mensah commented: “When

Kosmos energy launched the KIC

back in 2016, we knew it had the

potential to make a real difference

by bringing fresh talent, thinking,

and energy to Ghana’s agriculture

sector. Our achievements over the

last several years speak for

themselves: 600 young leaders

trained in business and

entrepreneurship; 42 promising

small businesses discovered or

supported; 360 jobs created; and

nearly 100,000 farmers supported

by our start-ups and small

businesses. The KIC generates buzz

in the agriculture sector, making it

a more attractive career path for

young people with ambition and

drive.”

The nationwide expansion of

the KIC’s proven and successful

model will give young people

closest to the problems the

opportunity to drive solutions that

unlock growth barriers in key

agriculture value chains.

Ghana Country head at the

Mastercard Foundation, Rosy Fynn,

commented “This multi-year

partnership with the KIC reflects

our optimism about Ghana’s future

and is aligned to our country

strategy of investing in the

agriculture and agricultureadjacent

sectors to unlock work

opportunities for young Ghanaian

women and men, and to push for

system level changes that

positions Ghana as a continental

demonstration of agriculture

innovations that are suited to the

African context. We are pleased to

collaborate with the KIC, an

experienced partner, to train and

support the next generation of

young entrepreneurs in the

country’.

The KIC’s programs which will

be scaled through the Initiative for

Youth in Agricultural

Transformation include:

• AgriTech Challenge Classic –

a 7-month annual training

program aimed at building the

entrepreneurial mindset of

students and young graduates.

Over the next four years, the

expanded version of the AgriTech

Challenge is expected to train

about 4,700 young people across

Ghana through relationships with

regional academic partners, such

as universities and technical

schools.

• AgriTech Challenge Pro – a 5-

month acceleration program

aimed at equipping existing earlystage

teams or AgriTech start-ups

with the right tools, funding, and

support to bring their business

ideas or products to market and

prepare them to scale. The program

was developed to train teams

advancing from the AgriTech

Challenge Classic, as well as others

from the broader start-up

ecosystem in Ghana.

• Incubation – the KIC

Incubation is a multi-year

business incubation program

aimed at preparing businesses for

growth, scale, and investor

readiness. The incubation program

involves more focused business

training, specialized coaching and

mentorship, networking, a

physical workspace, and access to

technical expertise. Six businesses

will be selected annually to receive

between US$10,000 and $50,000 in

funding, physical office space, and

continuous support from the KIC.

Throughout the incubation, the

KIC will invest in capacity building

programs to equip entrepreneurs

with specialized mentorship using

local industry experts.

• Business Booster – a 5-month

program that spurs the growth of

existing Micro-, Small, and

Medium-sized enterprises

(MSMes) in agriculture and

agriculture adjacent sectors in

Ghana that have demonstrated

potential and are ready to scale.

The Business Booster program

supports improvements in

structure and operations and

investor readiness by facilitating

business relationships,

networking, mentorship, business

development support, and

coaching. The program’s goal is to

accelerate the development of 900

MSMes over four years.

• Blue Skies School Farm of

The Year Competition – the School

Farm of the Year Competition

works by enabling secondary

schools to compete against each

other by managing and sustaining

their own farms to win prizes and

to be awarded the title of School

Farm of the Year. This competition

aims to develop the interest of

young people in agriculture

through practical training and

exposure. The program will

leverage school farms as models to

teach and demonstrate

innovations emerging

from the KIC, while

supporting the training of

teachers on how to apply

these solutions.

About Kosmos

Innovation Center

(KIC)

The Kosmos

Innovation Center (KIC) in

Ghana is a non-profit

organization that invests

in young entrepreneurs

and small businesses. We

empower entrepreneurs to

turn their ideas into viable,

self-sustaining businesses.

The Center works

alongside promising small

businesses to help them scale and

reach their full potential.

The KIC is investing in the

future by supporting innovators

turning today’s problems into

tomorrow’s opportunities. We are

on a mission to scale innovations

that apply commercial solutions to

key development challenges

starting with agriculture – the

largest sector in Ghana’s and

Africa’s economy.

For more information about the

Kosmos Innovation Center, please visit

www.kosmosinnovationcenter.com

About the Mastercard

Foundation

The Mastercard Foundation

works with visionary

organizations to enable young

people in Africa and in Indigenous

communities in Canada to access

dignified and fulfilling work. It is

one of the largest private

foundations in the world with a

mission to advance learning and

promote financial inclusion to

create an inclusive and equitable

world. The Foundation was created

by Mastercard in 2006 as an

independent organization with its

own Board of Directors and

management.

For more information on the

Foundation, please visit:

www.mastercardfdn.org

About Young Africa Works

Young Africa Works is the

Mastercard Foundation’s strategy

to enable 30 million young people,

particularly young women, across

Africa to access dignified and

fulfilling work. Africa will be home

to the world’s largest workforce,

with 375 million young people

entering the job market by 2030.

With the right skills, these young

people will contribute to Africa’s

global competitiveness and

improve their lives and those of

their communities. The

Mastercard Foundation will

implement Young Africa Works in

10 African countries in

collaboration with governments,

the private sector, entrepreneurs,

educators, and young people. The

first phase of countries identified

by the Mastercard Foundation are

Rwanda, Kenya, Ghana, Senegal,

ethiopia, Uganda, and Nigeria.

Media Contacts:

Kosmos Innovation Center

Stanley Amamu

samamu@kosmosenergy.com

Mastercard Foundation

Kweku Ahiagble

rkahiagble@mastercardfdn.org

Business Analyst - March 31

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