Business Analyst - June 2

BUSINESS MARKET RATES
US$ 1 – GH¢7.80
GHANA STOCK WED, 1 JUNE. 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%
COCOA: US$2,473.00 per tonne
CRUDE OIL: US$104.6 per barrel
GOLD: US$1,851.99 per ounce
Thursday, June 2, 2022. Vol. No. 161
GH¢2.50
• Nana Amo
Tobbin I, The
Executive
Chairman of
Tobinco Group
of Companies
• Vice
President
Bawumia
The
Association of
Ghana
Industries is
set to meet
the Bank of Ghana to find
a way forward over the
high lending rates in the
country.
According to its Chief
executive Officer, Seth
Twum Akwaboah, his
• Dr Ernest
Addison, BoG
Governor

Thursday, June 2, 2022
Johnny Depp wins defamation
case against Amber Heard
Depp lawyer becomes internet
celebrity
MILLIOnS of viewers
across the globe tuned in
to watch the legal battle
between two hollywood
stars.
As the drama unfolded, a new star
stepped into the spotlight: Johnny Depp's
lawyer, Camille Vasquez.
Vasquez, 37, has become an unlikely -
and unwitting - co-star of the show,
gaining fans for her sharp legal style.
T-shirts adorned with her name and
hashtags praising her are making the
rounds on social media.
"I am still a Johnny Depp fan," reads
one of the many tweets about her. "But I
am also now a die-hard Camille Vasquez
fan."
So who is the attorney that's caught the
eye of court watchers?
Reporting from Fairfax, Virginia
The former couple at an event together
in 2015
The former couple at an event together
in 2015Image caption: The former couple at
an event together in 2015
There have been essentially two cases
here - one decided by a jury and another by
the public.
And from its early days, it was clear the
overwhelming weight of online traffic was
siding with Johnny Depp and deeply
suspicious of Amber heard.
The number of people who watch TV
news each evening in America is about 18
million. The number of views of videos on
TikTok with the hashtag
#justiceforjohnnydepp is, at the time of
this writing, about 18 billion.
The question in the legal trial now is,
what impact this verdict will have? has
Depp saved his career and reputation?
As he made his final pitch to the jury,
Amber heard's lawyer Benjamin
Rottenborn boiled her case down into
simple terms. her op-ed at issue merely
suggested she had been a victim of
domestic abuse - she made no other
specific allegations.
"If you think they were both abusive to
each other... then Amber wins," he said. "If
Amber was abused even one time, then she
wins."
Going by this logic, the jury must not
have believed a single instance of abuse
detailed on the stand by heard.
And there were many. She alleged
numerous instances of emotional,
physical, verbal and sexual assault.
none of these seem to have swayed the
jury, who found she defamed her exhusband
by casting herself as a "public
figure representing domestic abuse".
'Surreal meeting Johnny' in a
pub as verdict is read
Gary Spedding from newcastle has
described to BBC news his chance
encounter with Depp at a pub there
moments before the jury read their verdict.
"It was very surreal, meeting Johnny,"
he said.
"I was happy to have wished him luck
earlier on and am very happy for the
outcome," he said.
"he said 'thank you'. he was very
gracious, you know, smiling. I was glad to
have met him," Spedding said.
'evidence matters, but the jury
are fans too'
If you were to take a look at social
media over the past month, you'd see that
to many, heard lost in the court of public
opinion weeks ago.
"What's interesting about public
opinion in this case is that we can measure
it," said journalist and author Cooper
Lawrence, who has written extensively on
celebrity culture.
"#JusticeForJohnnyDepp has more
than 18 billion hits on TikTok. Amber
heard has only a tiny percentage of that."
each day of the trial, Depp would pass
hundreds of screaming fans on the short
walk from his car to court.
Jurors had been instructed to stay
offline and ignore all coverage of the case.
But the noise around this case will have
been hard to ignore.
"I think it will be really interesting to
see how the jury responds to the cult of
celebrity that's in front of them," Lawrence
said before the verdict.
"evidence matters, but the jury are
fans, too."
Depp lawyer thanks jury
Lawyers for Johnny Depp, Camille
Vasquez and Benjamin Chew, speak
outside the court
ReutersCopyright: Reuters
Depp's attorney, Camille Vasquez, has
thanked the jury and said the verdict
confirms that "the claims against Johnny
Depp are defamatory and unsupported by
any evidence".
"We are... so grateful to the jury for
their careful deliberation," she told
reporters outside court.
Another Depp attorney, Benjamin
Chew, said the Depp team was "most
pleased that the trial has resonated for so
many people in the public who value truth
and justice".
"now that the jury has reached its
conclusive verdict, it's time to turn the
page and look to the future," he added.
Africa Live: Thousands of SA travellers
stranded after airline chaos
A reported 3,000 travellers
in South Africa have been
left stranded after the
Comair airline abruptly
suspended all its flights
with immediate effect.
The airline
announced the
suspension on Tuesday
evening, citing financial
problems.
Angry customers say
Comair offered specials
and accepted bookings
just hours before
announcing the
suspension.
Some travellers were
scrambling to find
alternative flights this
morning.
Comair is seeking
more funding to be able
to resume operations.
It operates low budget
airline Kulula as well as
domestic and regional
flights for British Airways
airlines.
The firm says it has
been affected by the
coronavirus-related travel
restrictions and the
recent increase in fuel
prices due to the Ukraine-
Russian war.
It has been plagued by
financial and operational
problems. In March,
South Africa’s Civil
Aviation Authority
temporarily grounded all
its planes, citing safety
concerns.

Thursday, June 2, 2022
Policy rate increment
AGI to meet BoG for cheaper credit
• Continued from front
outfit is engaging the Central Bank to
influence the commercial banks to
provide credit to industry at a relatively
lower rate.
“We have to look at the immediate
and the long-term impact. We have
been engaging the Bank of Ghana and
will continue to do that.”
“If we continue to engage, we will
amicably solve this”, he added.
The AGI has been lamenting over
the recent hike in the Bank of Ghana’s
policy rate to 19%, saying, its members
have been gravely affected by the
increment which has increased the cost
of loans.
Speaking to a cross-section of the
media at the Arab-African economy
Summit, Mr. Akwaboah admitted that
though the hike in the Central Bank’s
key lending rate is to control inflation
the move is having a great toll on
industry, particularly local businesses.
he further said the policy rate hike
would derail the activities of the private
sector due to high interest rates and the
high cost of credit.
“We understand the policy rate is to
slow down inflation, but the bottom
line is that when such measures are
taken the implication is clear as
interest rate goes up highly. And it gets
to a point where banks are even
interested in investing in government
bonds and treasury bills and all that. It
means it is crowding out private sector
access to financing”, he said.
Seth Twum Akwaboah also said the
policy rate hike has the tendency to
take a lot of business out of operations
which will largely affect the economy.
“If we don’t have a choice, but to
have a policy of this nature and it goes
on for too long it will have a great
impact on businesses and the
economy,” he lamented.
The Monetary Policy Committee of
the Bank of Ghana adjusted its key
lending rate by 200 basis points, from
17% to 19% in May 2022.
The move was to help control the
rising inflation.
Tobinco opens new
wholesale office at Spintex
TOBInCO Pharmaceuticals Limited
has opened a new wholesale office at
Spintex Road in Accra.
With the new office, residents
around Labadi, Teshie, nungua, and
Spintex will have easy access to the
facility when they have to buy medicine
at wholesale and retail.
The office, which was opened to
the public on Tuesday has been
stocked with products from the Tobinco
Pharmaceuticals Limited and
entrance Pharmaceuticals and Research
Centre.
Deputy Managing Director in
Charge of Marketing, Pharm Christopher
Mensah said the company is
spreading its tentacles in order to be
closer to its numerous customers
and the general public.
“In pharmaceuticals, we have
something called the four As, first of
all, the prices of your medicines
should be moderate so that everyone
can afford them. It has to be acceptable
in terms of quality, it has to be
approved. Again, it has to be available
and so you have to be able to produce
enough and one thing left is accessibility.
So, if someone wants it, they
can get it, that is why we are spreading
it out and getting closer to the
community because the community
needs the medicine,” he said.
he continued, “You will realise
that people are saying they want to
buy the medicine but they are not
getting it, meanwhile the factory has
produced a lot awaiting a truck to
pick them up and so if our factory
has been opened here and you are in
areas like Spintex, Tema, Teshie, you
can quickly go to the new office at
Spintex and get it. That is why we are
spreading, we are getting closer to
the people so that they do not have to
go through stress to get our medicines.”
CURRenCY MARKeT
The cedi is selling at 8 cedis to
the dollar this morning. You may
however get it higher on the retail
market or forex bureaus. On the
other hand, the pound is going for 9
cedis 95 Pesewas. The euro is also
trading at 8 cedis 44 pesewas.
“In
pharmaceuticals,
we have
something called
the four As, first
of all, the prices
of your medicines
should be
moderate so that
everyone can
afford them. It
has to be
acceptable in
terms of quality,
it has to be
approved.
Invest, list on local
Stock Exchanges
• Bawumia urges
mining companies
The Vice President, Dr Mahamudu
Bawumia, has challenged
mining companies
operating in Ghana and the entire
West African sub-region to
work with Governments and
regulatory bodies to establish a
mining index on local Stock exchanges
to allow both the owners
and investors in the minerals
to benefit from its exploitation.
The benefits of a mining
index on the local bourse are
enormous, enabling both the
State, Mining Companies, beneficiary
communities and investors
to attract the necessary
capital and built in incentives
for all involved, Dr Bawumia indicated.
Speaking at the opening session
of the three-day West
African Mining and Power exhibition
and Conference
(WAMPOC/WAMPeX) in Accra
on Wednesday, 1st June 2022 Dr
Bawumia urged African countries
to hasten the development
of the capacity to interact with
the world’s natural resources
banks, fund managers and the
leading stock exchanges in the
world to allow locals to benefit
more from the minerals bequeathed
to them by nature.
“In this regard, let me sound
a clarion call on the big mining
companies operating here in
Ghana and indeed, the West
African sub-region, to work towards
the emergence of a mining
index on our Stock
exchanges and thereby accelerate
their growth and significance
in African mining.
“This will require deep collaboration
among the local stock
exchanges, their regulators, as
well as mining firms to incentivize
Ghanaians to own listed
greenfield exploration projects
as the upside on such investments
tend to be higher”, he
noted.
While acknowledging the
enormous resources found on
the African continent, the Vice
President called for a careful balance
between the profit-seeking
needs of investors, and the sustainable
living needs of the communities
within which the
minerals are found.
“Yes, Africa is endowed with
many mineral resources but
while the availability of the resources
is important, the overriding
aim for all parties should
be the evolution of a carefully
balanced mechanism to ensure
that the resources of the state
benefit the owners of the resource
and at the same time extend
benefits to investors to
ensure that the State is able to
sustainably attract the needed
capital, investment and technical
know-how from a world
which has come to the realisation
that Africa is the continent
of the future.
“Significantly, the African
Union has been reassessing critically
the real significance of
mining to host country
economies over the years. As a
result of these efforts, the African
Mining Vision (AMV) emerged as
far back 2009. In essence the
African Mining Vision seeks to
ensure the transparent, responsible,
equitable and optimal exploitation
of Africa’s Mineral
resources for broad-based sustainable
socio-economic development
for the host
Governments and its citizenry,”
he disclosed.
he challenged African countries
and mining companies to
collaborate on a sub-regional
and even regional basis to derive
the most benefit from the exploitation
of Africa’s mineral resources.
“We need a strategy to enable
us to pool the mineral resource
rich countries in West
Africa and beyond together to assume
the mantle in the transformation
of our economies with a
greater awareness of mining as a
more comprehensive and transformational
economic activity
and as a key back bone for our
country.
“Given the paucity of size of
stand-alone countries it is only
proper that we consider regional
dimensions to local content
since individual African Country
Markets may be too small to
elicit the much-needed investments.
Investors desire
economies of scale to justify
such investments and it is necessary
that we consider the regional
economic blocs in Africa
as sub-markets which can then
collectively constitute the building
blocks of the African Continental
Free Trade Area (AfCFTA)."

Thursday, June 2, 2022
AFRICA MUST
INVEST IN ITS
LOCAL INVENTORS
OVEr the years, there have been records of
typical local Africans both young and old, who
have tried their hands-on inventions.
Africa has numerous problems and when
support is given to these people, they may end
up finding solutions to these problems.
In Ghana, Apostle Dr. Sarfo Kantanka has
also ventured into inventions. He has invented
so many items including vehicles. Even though
the government was seen purchasing a few of
Apostle Dr. Sarfo Kantanka’s vehicles, we here
still feel that what was to be done is to see the
government putting in money into Apostle Dr.
Sarfo Kantanka’s enterprise so that, the
intelligent man will in return train our teeming
unemployed youth.
This will solve our unemployment problems
and also expand our economy because more
taxes will be collected and then the
government will also not be burdened with
the issue of demonstrations by these
unemployed youths.
Back in the days at Ho in the Volta region,
there was this young man who invented a ship
that could float on water. This became an
inspiration for the youth around the Anglican
Quarters enclave at the time.
However, nothing profitable came out of
this young man’s ideas even though he was at
the time so much interested in conducting
more research and commercializing his ideas.
There is a documentary on Wonderland TV
about the exploits of a 67-year-old Nigerian,
Hadi Usman, who invented a cooking stove
that uses water and air pressure to generate
fire.
This comes amidst hikes in the price of gas
and kerosene in Nigeria and across the subregion
including Ghana.
According to the documentary, the gifted
Gombe technician said that, on 23rd January
1980, GASKIYA TA FI KWABO, a vernacular
tabloid in Nigeria, published how he
assembled a radio transmitter and operated a
community radio station in Gombe
Metropolis.
He revealed that there has not been any
support from the government there for him.
According to him, he prays that his
broadcast on Wonderland TV, brings some
opportunities so that he is able to expand
what he has done to the benefit of his people.
What they should begin to do is to focus on
how they can build an Africa combined with
support for youth talents especially our young
inventors. With this, it will have a positive
effect on our economies so that, at least the
huge borrowing will be avoided!
Businesses need
strong values for
brand sustainability
head of Strategy, echo
house Ghana Limited,
Abdullah Yusif
Mahmud, has stated
that to build and
sustain a strong brand
that will survive the
new normal and forge
forward, adoption of
strong values is very
essential.
he stressed that
embracing a
core value and
standing firm by
it in all
circumstances creates
unflinching trust between a
brand and client that is mutually
beneficial to both parties in the
long-term.
Referencing from echo
house’s point of view, the chief
strategist indicated that the
brand holds dear to heart a model
dubbed ‘ReD’, which simply
means Relevance, easy and
Distinctiveness – as these values
guide their operations and ensure
there is no deviation from the
core, no matter the project or
proposal.
“The ‘R’ is Relevance, and for
us that value
being part of the
brand means we
want to build a
relationship
which transcends
just buying and
selling; a service
to get the
consumer to
understand
whatever you are
selling.
“The ‘e’ stands
for easy, we want
to be easy to
access, to afford
and easy to enjoy,
and this makes
the brand
physically
available for
consumers to
identify and use
whenever they
need a solution in your field of
operation.
“The ‘D’ refers to
Distinctiveness, and this means
the brand should be
instantly/easily recognised from
other brands on the market,” he
said.
Adding to this, he emphasised
that brands should be mindful
when trying to be distinctive
rather than different, because
being different can be bad – and
no brand wants to be known in a
bad manner.
Touching on the impact of
COVID-19 on the creative arts and
innovations that urged the firm to
stay relevant, he stated that his
entity developed what is called
the ‘pot system’ – whereby staff
were grouped into various pots to
develop ideas and compare with
others in different pots, for the
best solution to be picked as the
final solution to put forward.
Furthermore, Mr. Mahmud
noted that COVID-19 also played a
key role in boosting economic
activities online. “Despite the
dreadful impact of COVID-19, one
of the things it has also done is
shifted the digital adoption
agenda to about five-10 years
faster. now, because of COVID-19,
people are working from home;
people can trade online without
crying about data and fear of
being duped.
“For us, it was about giving
consumers value and helping
them continue with their
business; so we developed an
online solution wherein we
created shops for businesses on
various platforms to sell their
products,” he added.
he made these remarks in an
interview on the sidelines of the
inaugural edition of Brand-COn
Africa in Accra, organised by the
B&FT and themed ‘Celebrating
Versatility and Innovation in the
Midst of a Pandemic’.

Thursday, June 2, 2022
Tobinco grabs 2021
Pharma CEO of the Year
The executive
Chairman of the
Tobinco Group,
elder nana Amo
Tobbin l has
been adjudged the Pharmaceutical
CeO of the Year. The
award was bestowed on him
over the weekend by the
Vice President, Dr. Mahamudu
Bawumia at the
6th Ghana CeO Summit
held in Accra.
The respected entrepreneur
was awarded in recognition
of his sterling
leadership, achievement,
business excellence, and
professionalism over the
last year in the pharmaceutical
sector of Ghana’s economy.
nana Amo Tobbin’s citation
read, “, has demonstrated
being a model of
business excellence, illustrates
leadership and vision,
demonstrates a high standard
of ethical practice, professionalism,
investment,
job creation in Ghana and
positive impact to the Business
community over a
year.”
The award was received
on his behalf by the Financial
Controller of the Tobinco
Group, Mr. Daniel
Gyapanin.
nana Amo Tobbin had
previously won the C.e.O of
the Year at2020 Ghana
Manufacturing Awards, and
entrepreneur of the Year
2019 at the Ghana Pharma
Awards among others.
“Nana Amo Tobbin’s citation
read, “, Has demonstrated
being a model of business
excellence, illustrates
leadership and vision,
demonstrates a high
standard of ethical
practice, professionalism,
investment, job creation in
Ghana and positive impact
to the Business community
over a year.”
Pursue aggressive resource
mobilisation — Bawumia to AfDB
The Vice President of Ghana, Dr. Mahamudu
Bawumia, has urged Governors
of the African Development Bank
(AfDB) to pursue an aggressive resource
mobilisation drive through Special
Drawing Rights (SDRs) for Africa’s recovery
and transformation.
Additionally, he asked the Bank
Group to reform regulations of the
African Development Fund (ADF) – the
concessional financing window of the
Bank Group, to reform its regulations to
enter the capital market.
The Vice President made this call
when he delivered a speech at the just
ended 57th Annual Meetings of the
Board of Governors of AfDB in Accra.
he said, “The Bank should effectively
pursue the strategic decision of
the eU to make the AfDB the delivery
vehicle for the Special Drawing Rights
and leveraging these SDR resources to
drive Africa’s recovery and transformation.”
he encouraged the Bank Group to
also prioritize and explore the issuance
of security indexed investment bonds to
raise funds to combat the increase in
insecurity, enhance capacity to protect
investments and livelihoods and rehabilitate
communities and infrastructure
adversely impacted by insecurity.
“I would like to underscore the need
for this and add my voice to the call that
the bank undertakes an aggressive resource
mobilisation drive, especially for
the ongoing ADF 16 window to meet the
exigencies of these times. The bank
should endlessly reform the regulations
to enable the ADF to enter the market to
leverage its resources,” he emphasized.
The Vice President remarked that
doing so will make African countries
have increased funding that would
impact how countries upgraded and
expanded their health facilities and
build up competencies of pharmaceutical
industries to manufacture vaccines
and therapeutics.
he said that although the Bank
had contributed so much in building
the African economies, today, it was
challenged even more, as economies
were facing the fallout from the Russia
Ukraine war, compounding the
economic vulnerabilities triggered by
the COVID 19 pandemic.
The continent’s average real
growth rate was projected to decline
from 6.2% in 2021 to 4.1% in 2022.
Meanwhile, economic consequences
in the form of rising inflation
subdued growth, increase in inequality
and greater macro fiscal instability
were affecting the cost of living on this
continent.
Dr Bawumia, said, “I have no doubt
that the bank will rise up to the occasion
and help our economies scale over
these hard times.”
he added that, “It is reassuring that
the ADB is offering complimentary
leadership on climate action in Africa,
including mobilising climate financing
and this is critical because we know
that climate change has severe consequences
for Africa’s economic growth
prospects.”
“I am convinced and confident that
this Bank, our Bank, the African Development
Bank, has the right leadership
and skill set to continue to digitalize
Africa, industrialize Africa feed Africa,
light up and power Africa, integrate
Africa and transform the quality of the
lives of the African people,” he said.
The Vice President commended the
Bank for evolving to become integral to
the sustained and inclusive development
of this continent and delivering
the needed support for its people.
he remarked that aside from the
immense socio-economic interventions,
especially in infrastructure, agricultural
modernization, social
protection, and entrepreneurial development,
the Bank was also at the forefront
of seeking fairness for Africa in
the global arena.
“These efforts have substantially
improved inequality, vulnerability and
fragility on the continent,” he noted.

Thursday, June 2, 2022
CSR Game-changers
– Creating a meaningful
difference
“We can change the
world and make it a
better place. It is in your
hands to make a
difference.” — Nelson
Mandela, Former South
African President,
freedom fighter, and
philanthropist
IT’S time to talk about the
crème de la crème, the
best in class, the
businesses that hands
down lead the way when
it comes to making a meaningful
difference in their workplace and
society at large. These companies
are creating a shift in how
Corporate Social Responsibility
(CSR) was perceived and done in
the past to transition CSR as a
value-adding approach. The gamechangers.
These are the new breed of
businesses that can balance
making healthy profits while at
the same instance meeting
societal needs and acting as forces
for good in their communities.
Today, CSR in business practice
has elevated well surpassed just
philanthropy, as known in the
past.
These game-changer businesses are
making meaningful progress and
contributions, whether in the workplace
or in society, and they are not afraid to
make bold changes. These businesses
have a socially conscious business model
that is both financially savvy and
environmentally friendly. They use their
strong business sense to find solutions
for social issues, combat climate change
and promote employee wellness, to
mention but a few differences that they
make.
Game-changers in action
Let’s look at a few
companies excelling at
practicing what they are
preaching. These game-changer
companies embrace change and
never feel pressured to innovate
since these characteristics are
at their core. After all, these
businesses are committed to
making the world a better place
and making a difference. First,
let’s look at IBM. The company’s
mission is to innovate, but this
innovation can be social and
technological. In the 1990s, they
saw a chance to innovate in
education and develop the
technology needed. So, IBM
began a partnership with K-12
public schools to help them
tackle some of their everyday
problems. For instance, the
collaboration produced a Watch-Me!-
Read software to help children improve
their reading.
Another game-changer is Procter &
Gamble (P&G), a prominent global
leader in consumer products. They
provide an excellent example of how
making a social impact and
considering the environment are
central to profits. however, there were
years when the P&G branch in Brazil,
which specialized in the company’s
feminine hygiene products, was only
earning small revenues. however, they
had a pretty good idea of fixing this
problem. They had their main product,
“the Always” brand of panty liners, all
they needed to do was devise a way to
cut production costs while
simultaneously increasing output. A
daunting but achievable task.
To achieve this task, P&G
Brazil began a collaboration
process across all its internal
stakeholders, departments and invited
input from its external partners, such
as their trade partners and advertising
agencies. Collectively, they came up with
an innovative idea. The packaging would
be transparent with colorful wrapping
inside. By eliminating the outer
packaging, they significantly reduced the
cost of ink per package, and for sure,
within a year, the product was earning
far greater profits.
Take an example from the printing
industry with Xerox. Xerox is another
game-changer worth deliberating on. The
printing giant excels in its business and
commitment to creating a more
“The company’s
mission is to innovate,
but this innovation
can be social and
technological. In the
1990s, they saw a
chance to innovate in
education and develop
the technology
needed. So, IBM
began a partnership
with K-12 public
schools to help them
tackle some of their
everyday problems.
For instance, the
collaboration
produced a Watch-
Me!-read software to
help children improve
their reading.
sustainable world. In 2018, Xerox was
named One of the World’s Most ethical
Companies for the 12th consecutive time.
Xerox was also included in America’s
most JUST companies for two years in a
row. With such credentials, it is no doubt
that Xerox emphasizes its Corporate
Social Responsibility initiatives.
According to the 2019 CSR report,
“Design for Sustainability” has always
been one of their main goals as they
recognize the environmental, social, and
economic impacts caused by their
products. Therefore, they have invested
heavily in research and development to
design more sustainable products and
minimize the use of hazardous materials.
As part of their zero-waste initiative, they
have developed “a comprehensive end-oflife
product recall system” that identifies
the elements of a product that can be
remanufactured, refurbished, recycled,
reused, and resold. This facilitates
multiple product life cycles as their
materials can be used continuously
repeatedly, minimizing waste that
contributes to landfills.
Consider, for instance, Levi Strauss &
Co. Levi Strauss & Co. made denim jeans a
universal piece of clothing, and they are
on their way to making water
conservation a universal process in the
manufacturing industry. numerous
organizations treat the problem caused
by their products as part of their CSR
initiatives because they are obliged. Still,
Levi Strauss & Co. believes in prevention
and is putting mechanisms and
strategies in place to ensure that water as
a scarce commodity is a priority. A case in
point is they started researching and
assessing their products’ impact on the

Thursday, June 2, 2022
environment so that they
were able to create a more
sustainable method in their
manufacturing process. They
started their analysis with
their most iconic Levi’s 501
jeans pair. Working with
third-party organizations,
Levi Strauss & Co. found out
that more than 3000 liters of
water were used during the
entire product cycle of one
pair of jeans from cotton in
the ground, washing of jeans,
and eventual disposal of the
product.
Investing time, resources,
and effort in research and
development, their designers
have developed 20 innovative
techniques to use less water
in their jeans manufacturing
process. An example would
be to turn golf balls and
bottle caps upside down to
get jeans with soft felt
instead of using fabric
softener with water. Both
methods are equally effective,
but the first uses less water.
When their techniques
proved successful, they began
implementing the
“waterless” process in their
design and production
pipeline. As a result, they
reduced the amount of water
commonly used in the
finishing process of denim
fabrics by up to 96%, saving 3
billion liters of water and
recycling more than 1.5
billion liters of water. In 2019,
69% of their bottoms were
made of the “waterless”
technique. They even opensourced
their innovation to
other manufacturing
companies so that all of them
can work towards reducing
water wastage.
And finally, there’s the
story of Patagonia. For years,
Patagonia has shown from
their clothing to their CSR
projects that their mission
statement, “We’re in
business to save our home
planet,” is constantly at the
back of their minds. Their
actions serve as a
representation of that same
statement they made.
Patagonia has always been
vocal and transparent about
its beliefs as an
environmental activist. Apart
from integrating
sustainability into their
clothing, they have
contributed heavily to
environmental causes in
terms of corporate
philanthropy. For more than
30 years, the socially
responsible company has
donated 1% of its annual
sales to charities and
grassroots organizations.
According to reports and
other sources, Patagonia
views these contributions as
“one of their standard costs
of doing business and
something that is as much a
core element of Patagonia as
selling shirts and jackets”.
Patagonia engages and
deploys like-minded activists
to champion lands, water,
climate, communities, and
biodiversity issues. They have
given over $100 million to
grantees since 1985 to take
action on environmental
issues. Instead of an
individualistic approach, this
outdoor company believes in
a collective effort to bring
about change. This
illustration provided an
excellent depiction of CSR as
it evolved over the years and
demonstrated how human
behaviour also did and to
what extent companies
become a force for good.
Why? Because today’s
problems, such as the
environment, climate
change, technological
challenges, and healthcare,
are too complex for one
company to solve alone. This
shows that all businesses can
make a difference and be
agents of change. however,
the obligation to perform and
deliver results from their
initiatives has distracted
many companies from the
main motive of CSR, which is
to align a company’s CSR
projects with its business
strategy and core values.
Conclusion
Being a game-changer
often brings conflict,
resistance, and uncertainty,
but companies shouldn’t let
that hold them back. It is
usually only when risks are
taken, and businesses lean
into the unknown that brave,
meaningful change happens.
These game-changer
companies acknowledge that
“Another gamechanger
is Procter &
Gamble (P&G), a
prominent global
leader in consumer
products. They
provide an excellent
example of how
making a social
impact and
considering the
environment are
central to profits.
However, there were
years when the P&G
branch in Brazil,
which specialized in
the company’s
feminine hygiene
products, was only
earning small
revenues. However,
they had a pretty
good idea of fixing
this problem...A
daunting but
achievable task.
creating a shift in the status
quo, experiences, and beliefs
takes more effort. But it will
yield substantial, longlasting
changes that will
make a solid base for the
results they want in the
foreseeable future.
After all, this process
occurs on different scales and
at different speeds for various
organizations. Therefore,
companies must consider
assuming a new approach to
their organization’s culture
and modus operandi as a
transition, not a
transformation. They see this
transition as a means to an
end, not the other way
around. In this way, CSR is a
vital strategy that allows
businesses to invest in
society, supporting them and
integrating environmental
and social issues in their
business processes. This
ensures that they continue to
drive change and make a
difference in the present and
the future.
About the Writers:
Romein is a (selfconfessed)
Pan-Africanist by
heart. Romein is a multidisciplinary
professional
with experience in various
sectors. Contact him via
(romeinpvanstaden@gmail.co
m)
Ebenezer is a
Development Communication
Specialist, MSME & SDG
Enthusiast, Finance &
Investment Nomad, and a
WriterPreneur. He`s Country
Director (Ag) of PIRON Global
Development GmbH, Ghana
(www.piron.global). Contact
him via
(asumang@piron.global)

Thursday, June 2, 2022
ENTREPRENUERSHIP
Insurance can limit organisational
or industrial liability cost
Maxam Company
Limited, the company whose
mining truck was involved in
the Appiate disaster, has
been fined US$6million.
ACCORDInG to the
statement, Maxam shall
pay the fine of one million
United States dollars
(US$1,000,000) or its cedi
equivalent at the prevailing
commercial rate before the restoration
of its permit to manufacture, store,
supply and/or transport explosives.
Per the statement, given the
demonstrable cash inflows of Maxam
and their current circumstances, the
remaining five million United States
dollars (US$5,000,000) shall be paid in
eighteen (18) equal monthly
installments, beginning from 1 March
2022 to 1 August 2023 (Atinka online).
The main goal for most businesses is
to earn a profit. Generating profits in a
business environment often indicates
that an organisation is offering goods or
services desired by consumers at a
reasonable price. Developing a strong
clientele and a competitive advantage
against other companies in the market
may require much time and effort on
management’s part as it seeks to
produce desirable goods or services that
produce profits. Business organisations
that cannot complete these functions
may face the prospect of losing money
from their operations and dealing with
the consequences of financial loss.
Again, there are so many other ways
that organisations or industries could
lose money. One of them is through the
negligence of their responsibilities
toward staff, third parties, other
institutions and society as a whole that
could result in a legal suit against them.
This could bring so much cost to them. A
clear example is the recent explosion at
Bogoso Apiatse.
All organisations have liability loss
exposures. To properly identify, analyse
and treat an organisation’s liability loss
exposures, risk management and
insurance professionals must first
understand the concept of legal liability
and the common sources of these
exposures.
Legal liability can be imposed by civil
law, criminal law, or both. Liability
insurance covers liability imposed by
civil law. Insurance for criminal liability
is not permitted by law. Any wrong
against society, criminal law will impose
a penalty against you. Civil law protects
rights and provides remedies for
breaches of duties owed to others, and
this is a classification of law that applies
to legal matters not governed by
criminal law.
A single act can constitute both a
civil wrong and a crime in some
instances. For example, if a vehicle driver
cause death to a pedestrian, law
enforcement agencies may charge the
driver with manslaughter – a crime. The
driver may also be subject to civil action
by the estate of the deceased pedestrian
for medical bills, funeral expenses, loss
of support and other damages that the
law allows. Insurance coverage will not
respond to the criminal charges. It could,
however, provide payment for the civil
claims.
Legal liability is the legally
enforceable obligation of a person or an
organisation to pay a sum of money
(called damages) to another person or
organisation. Legal liability can be based
on tort, contract or statutes.
Tort
A tort may be a civil wrong (also
referred to as a private wrong). Most of
the insurance claims covered by liability
are based on tort law, which protects the
rights of individuals. These rights
include the right to security of person,
property, reputation and privacy. Where
a right exists, others have a
corresponding duty to respect it and to
refrain from any act or omission that
would impair or damage it. Any
wrongful invasion of legally protected
rights entitles the injured party to bring
legal action against the wrongdoer for
damages. The numerous types of torts
fall into three broad categories:
negligence, intentional torts, and strict
liability torts.
negligence is based on four
elements. each element must be present
for a negligent act to qualify as the basis
for a negligence tort. A motorist who
drives at an unsafe and excessive speed,
and as a result causes an accident that
injures another motorist, has committed
the tort of negligence. In contrast, a
driver who narrowly misses another
vehicle hasn’t committed the tort of
negligence, although the act was
perhaps negligent. The motorist whose
vehicle was narrowly missed will not
have the basis for recovering damages
from the other driver because no actual
loss or damage occurred.
An intentional tort does not
necessarily have to be performed with
malicious or hostile intent. An example
of an intentional tort is libel – the
publication of a false statement that
damages a person’s reputation.
Strict liability (or absolute liability) is
a liability that is imposed even though
the defendant acted neither negligently
nor with intent to cause harm. Strict
liability, for example, can result from
owning wild animals or performing
ultra-hazardous operations such as
blasting.
is based on
four elements. Each
element must be present
for “Negligence
a negligent act to
qualify as the basis for a
negligence tort. A
motorist who drives at
an unsafe and excessive
speed, and as a result
causes an accident that
injures another motorist,
has committed the tort
of negligence.
Contract
Contracts also impose legal liability
aside from tort. If one party fails to
honour the contractual promise, the
other may go to court to enforce the
contract. Liability based on contracts can
arise out of either a breach of contract or
an agreement in which one party
assumes the liability of another.
A breach of contract is a failure to
fulfil one’s contractual promise. A
common type of breach of contract
involves the promise made by a seller
regarding its product. If the product fails
to fulfil its promise, the
warranty/promise has been breached
and the buyer can claim against the
seller.
Statutes
In addition to torts and contracts,
statutes are a third major basis for
imposing legal liability. Written laws at
the local level are usually referred to as
ordinances. Statutes and ordinances can
modify the duties that persons owe to
others. Thus, the duties imposed by
statute or ordinance may be used as
evidence of a person’s duty of care in a
tort action. A statute can also impose
legal liability on certain persons or
organisations regardless of whether they
acted negligently, committed any tort, or
assumed liability under a contract.
Liability Insurance Coverage
Liability coverage protects both the
insureds and the parties that may suffer
an injury, either financial or physical. All
businesses, including not-for-profit and
governmental organisations, face the
possibility of liability losses arising from
their premises, operations, products and
advertising. Liability insurances such as
product liability, public liability,
professional indemnity, employer’s
liability, etc are designed to serve as the
primary layer of protection against these
loss exposures.
This is the main reason why
industries and organisations should be
more aware of their liability exposures
so they can limit the cost they could pay
by taking the appropriate insurance
cover.
The writer is a staff of the National
Insurance Commission, a Chartered
Insurance Practitioner, and an Associate
of the Chartered Insurance Institute of
United Kingdom and also Ghana (ACII-
UK, ACIIG),
Araba is the Head of Business
Development Unit at Ghana
Communication Technology University,
Accra. She has MBA in Finance from
GIMPA and BSc. Chemistry from UCC.

Thursday, Tuesday, June March 2, 2022 1, 2022
REAL ESTATE
Real Estate Development 101;
Benefits of a Single Storey Home
Abraham Maslow’s theory of
needs considers a home/shelter as
a basic need that is fundamental
to man’s survival. Even if one has a
place to put his or her head to sleep
after a hard day’s work, one still
dreams of owning a house at some
point in his/her life when all is
said and done; at least as an
accomplishment after years of
hard work.
AS appealing as it may sound,
you must decide on the kind
of home you want to build.
Building a home for the sake
of it may end up being a
waste of money because it doesn’t suit your
needs and lifestyle. It tends to be an extra
cost which puts a strain on your finances.
It is important to know the type of
building; thus a single-storey or multiplestorey
(two and above) and which one suits
your needs best.
I have heard many arguments for or
against a single storey home or a multiple
(double) storey home with so much
passion. The arguments usually tries to
downplay the other as if to say one is better
than the other. To be honest that is not the
case, but I understand the posture of those
who prefer one against the other. The
bottom line of which is better is about how
they meet one’s needs. If you have a family
that have elderly people or persons who
will have difficulty in climbing up and
down the stairs, a single storey home will
be best option. On the contrary, if climbing
up and down the stairs is not a problem
and privacy is dear to one’s heart, then a
double-storey home will be perfect.
So you see, it is not because one is
better than the other but because the one
you choose fits your lifestyle and needs;
whatever they may be.
In today’s article, we will focus on a
one-story home and its benefits. A onestory
home is a building that has only one
level and it is important to note that
basements are not counted as a storey. The
numerous advantages that come with onestory
homes are appealing. If you are ready
to build or buy a home and you are not sure
if a single storey home is for you, I have got
you covered. here are some benefits of
owning a single-story home.
One-story homes are appealing to any
age bracket. They provide better
accessibility for both the young and old,
also, the physically disadvantaged. It is
perfect for every stage in life, thus from
childhood to old age. The designs of single
story homes are good and accident-free.
Whether you have young kids or aging
parents living with you, you do not have to
harbour the fear of someone falling off the
staircase or from the floors of the building.
It is also very convenient for persons living
with disability as it makes it easier to move
to every part of the house without a hassle.
In the case of an emergency, evacuating the
building will be a lot easier as compared to
houses with levels. As a natural stage in life,
we will grow old and tackling stairs with
old age becomes more difficult and
cumbersome. One story homes provide easy
access to every part of the house without
any extra effort. It is easier to navigate.
The beautiful aspect of a one-story
home is that because all rooms are
accessible, it is easier to move to each
other’s room or converge at a place for
family bonding and because spaces are
shared together, it provides an avenue to
get to know each other better. The open
floor plan of these types of buildings is
structured in a way that the kitchen, hall
and dining rooms usually flow together
thus creating a central space for home
which encourages bonding, unlike the
double story homes that comes with
privacy. It is the perfect home for people
to enjoy family time and bonding.
One-story homes are easy to
maintain. This is because it is easy to
reach a lot of places and corners in the
home and you do not need a ladder to
reach certain parts of the house to clean
or renovate, unlike a two story home.
Because the rooms aren’t many and are
within the view of the owner, it is easy to
identify the places in the house that need
maintenance and can be worked on as
soon as possible. Maintenance can also be
done on a regular basis because the rooms
aren’t many. Since everything is on the
same level, there is no need to be carrying
cleaning equipment up and down which
can be very tiring and demotivating. This
will help keep the house in shape and
beautiful as always.
Single story homes also give more
room for creativity with more design
options. The nature of a one-story home
gives you the opportunity to have a variety
of designs because it has a large living
space. There can be more variation in
ceiling and window heights to enhance the
beauty of the home. Also, because the rooms
are large, space can be optimized well and
designed in a way that will suit your needs
or even your family needs; if you plan to
move in with your family. You can also
easily blend the indoor with the outdoor.
It is important to note that single-story
homes are also cost and energy efficient.
That is, it has just one floor or level and it’s
spacious, the place is airy and benefits from
the earth’s natural light and air. elementary
science states that the higher the altitude
the lesser the oxygen. It is easy to optimize
these natural resources to reduce utility
cost as the AC, fan and lights will be used
less. More so, the lack of walls in a one story
home makes it easier for air to flow thus
improving ventilation.
Windows can be built higher to ensure
the place is airy at all times thus more
ventilation. With regards to one story
homes being cost-efficient, you get to spend
less on décor and furniture as you will not
have to go through the ordeal of designing
and furnishing a lot of rooms. You also
spend less on maintenance. Spending less
on utilities also makes it cost-efficient and
that’s a double win!
If you are looking to go into real estate
as an estate developer, a one-story home
should be your top pick. They have a wider
appeal and are likely to sell more than any
other structure. They are easy to build and
they sell faster too.
In spite of these benefits, it is important
to factor in your needs when buying or
building a home as it may go a long way to
affect your choices. You can talk to estate
developers, brokers or agents to assist you
in choosing the right home if you are still
not certain about the type of story you want
to acquire. notwithstanding, the next
publication will cover the benefits of a twostory
home in order to make a firm decision
on the type of home you want to build or
buy.
The writer is the CEO of CBC Properties
Limited, a member of the Ghana Association
of Real Estate Brokers (GAR) and Ghana
Real Estate Developers Association (GREDA)

Thursday, June 2, 2022
FEATURE
Insights with Dzigbordi K. Dosoo:
How to make your life your project
and succeed in 2022 (II)
• Continued from Page 10
the bottom, middle or top in the
workplace. There are four main categories
when it comes to this:
Inspirational – those in these category
determine how things need to happen.
A step by step process for
accomplishing particular objectives.
They write with aspirations and like to
think a lot about what they want to do in
many different ways.
Strategic – those in this category determine
why things need to happen. A
big picture, long term thinking, which
starts at the highest level with defining a
mission and casting a mission – high
level thinkers who like to be very broad
in their writing but know exactly what
they want to do.
Tactical – those in this category determine
what is going to happen. They ask
specific questions about what needs to
happen to accomplish a strategic goal.
Contingency – those in this category
determine how things are made when
the unexpected happens or something
needs to be changed. They are those who
always think of plan ‘b’, ‘c’ and so on.
What do you identify as? You have to
find out which one you are. You may fall
in more than one of the categories but
one will be more dominant. You may also
think you fall in none but I want you to
take a careful look at each of them, take
time to analyze them and that is when
you will realize you fit in one. When you
are able to identify who you are, it helps
you to know what kind of plan you are
going to do.
Another aspect you have to find out
about yourself when it comes to making
your life your project is determining
whether you are a process goal setter
where you do not put specifics in your
goals but plan the process to see what
comes out of it or you are a results goal
setter where you are specific in the outcomes
of the goals you set and work towards
it. Over here too, you must know
which of the goal setters you are in order
to inform how you work out your plans.
As you proceed in making your life
your project, there will be so many aspects
you need to work on to bring about
the needed results. here are 4 areas you
need to start focusing on in your journey:
AWAReneSS
You need to identify your difference
from everyone else; that is, know that
which drives you and what makes you, to
help you make your first journey to Leadership.
Know yourself, know your skill,
know your ability, and know how you appear
to people. If you are able to become
aware of yourself, you will always show
up in a way where people will come to
you without you having to chase them.
2. AnTICIPATe ReJeCTIOn
Rejection is an art you must learn.
You must always prepare for rejection as
it may come through business, life and
relationships. This does not define your
life nonetheless; rather, it is an opportunity
to continue developing your skills to
become a person of relevance. Pre-prepare
your rejection messages so that you
can use them whenever the need arises.
This takes care of any unpleasant surprises
that may cause emotional outbursts.
Diminish your emotions and all
the self-esteem distractions that dwell
on the negative. Always show acceptance
and appreciation, and work on that
which caused the rejection. Learn to say
“Thank you, I understand and I appreciate.
I will work on myself.”
3. APPeARAnCe
Your appearance is the primary instrument
in creating either a positive or
negative first impression. People are superficial
by nature and tend to formulate
their initial opinions about you before
they actually speak to you. The way you
dress has a direct effect on people’s default
assumptions of you. People address
you by the way you are dressed.
Your appearance tells who you are,
where you should be and the impact you
are going to make. how you look – your
gestures and clothing, movement, eye
contact and expressions all play a key
role. Your eyes connotes connection; your
smile should show warmth; your stance
should exude dominance and trust; your
hands should depict trust and respect;
Look people in the eyes, show up with a
smile, and always make your hands visible.
“Strategic – those in
this category
determine why things
need to happen. A big
picture, long term
thinking, which starts
at the highest level
with defining a
mission and casting a
mission – high level
thinkers who like to be
very broad in their
writing but know
exactly what they
want to do.
4. ADAPTABILITY
You must identify your life as a project
and manage it as you would manage a
project that you have been given. Always
be flexible and move on, adjusting to new
ways instead of dwelling on the old.
Work on your mindset in such a way that
nothing will be strong enough to shift
your focus from your message. Then, determine
whether you are a developer, an
organizer, an expert or role model and
use it to your advantage.
Making your life your personal project
comes with a lot of hard work that results
in numerous benefits for both your
personal life and work life. You only have
to take a bold step by finding time to reflect
and consolidate your plans by breaking
down your plans into measurable
goals and putting dates and time to it in
a planner that works for you. You will
then see progress and growth in your
personal and career life as you start executing
your pre-prepared tasks one after
the other with intentionality.
To find out more about yourself – fundamentals,
personality and where to
start in making your life your project,
grab a copy of my book The essentials of
Image Leadership.

WORKPLACE
Thursday, June 2, 2022 PAGE 11
Earning salary only
manages poverty
– Paul Mante
The Managing
Director of eDC
Investments Ltd,
Paul Kofi Mante
has advised
salaried workers to invest and
explore other streams of
income in order to attain
financial independence.
According to him,
depending solely on monthly
salary will only manage
poverty and will never help
one achieve financial
independence to live the
desired life.
“Traditionally, this has
been the thinking, find a good
education, find a good job with
some secure benefit, work till
you are 60 and get a good
pension, this thinking belongs
to the old school, it doesn’t
work in the year 2022 and
beyond.
“In the year 2022 and
beyond, the new way of
thinking is you have to
manage personal finances so
that you are able to create
wealth but ultimately the
reason why you are creating
wealth is that you want to
become financially
independent which simply
means getting to that stage
where you can sustain your
desired lifestyle without
salary,” Mr Mante said on the
effective Living Series on Citi
FM Tuesday, January 25.
Speaking on the theme
‘Rebuilding Wealth Through
Financial Planning’, Mr
Mante added that “Salary is
the medicine for managing
poverty, it does not cure
poverty only an investment
or business cures poverty,
not all of us can run a
business but everybody can
invest because if you don’t
find a way to make your
money work whiles you are
sleeping you will keep
working at the time you must
be sleeping.”
The MD for eDC also
outlined five key areas that
one must deliberately plan
around in 2022 which
includes; Retirement,
housing, Children’s education,
Giving back and the high Life.
Mr Mante also stated that
the God Factor and
appropriate information are
the two key factors that can
help one achieve financial
independence and create
wealth.
According to him, the God
factor gives you the financial
resources and attract ideas
and opportunities while
having the appropriate
information in the financial
sector helps one to “manage,
multiply and preserve what
you have.”
Mr Mante admonished
students and young people yet
to start work to seek financial
literacy to properly put in
place measures that will help
them become financially
independent before the age of
retirement.
In case you need help to
draw up a financial plan you
can contact an official at eDC
Ghana by clicking the
WhatsApp link attached
https://wa.link/dqr3zs
“In the year 2022
and beyond, the
new way of
thinking is you
have to manage
personal finances
so that you are
able to create
wealth but
ultimately the
reason why you
are creating
wealth is that you
want to become
financially
independent
which simply
means getting to
that stage where
you can sustain
your desired
lifestyle without
salary,” Mr Mante
said on the
Effective Living
Series on Citi FM
Tuesday, January
25.

Thursday, June 2, 2022
BACK
PAGE
BoG, others demonstrate satisfactory
progress in implementing
provisions of PRMA — PIAC
The Bank of Ghana, Auditor-General,
Public Interest, and Accountability
Committee, and Petroleum Commission
have demonstrated satisfactory progress
in implementing the relevant provisions
of the Petroleum Revenue Management
Act (PRMA), the Public Interest
and Accountability Committee has disclosed.
On the other hand, the Ministry of
Finance, Parliament, the Ghana Revenue
Authority, and the Ghana national
Petroleum Corporation have demonstrated
meaningful progress in implementing
the relevant provisions of the
PRMA.
But the Investment Advisory Committee
has demonstrated inadequate
progress.
On the institutional assessment of
petroleum revenue management conducted
by PIAC, Lead Researcher, Dr.
emmanuel Y. Tenkorang said the PRMA
falls short of prescribing the exact
specifics or definition of the 12 areas,
leaving room for conflation and potential
abuse by the political leadership of
the day.
In addition, there are other lingering
questions about the impact of Annual
Budget Funding Amount (ABFA)
funded projects and the attainment of
outcomes tied to broader national development
objectives.
he called for the requisite human
resources and tools for the GRA and
other institutions such as the Petroleum
Commission, PIAC, and the Ministry
of Finance to undertake their
critical mandate of petroleum revenue
management more effectively and efficiently.
“The requirement under 21(2) of the
PRMA (as amended) for the ABFA to be
used to maximise the rate of economic
development, promote equality of economic
opportunity to ensure the wellbeing
of citizens, and undertake even,
and balanced development of the regions
is yet to be fully attained”.
“It is a matter of common knowledge
that after ten years since the first
oil, there is the need to undertake a special
audit of ABFA funds over the past
ten years. The audit could also focus on
sectoral allocations in line with the requirements
of the PRMA and the PFM
Act. The Special audit must be a joint institutional
effort led by the Auditor General
and supported by PIAC.”, he added.
Management of GPFs
Dr. Tenkorang added that the lack of
a clearly defined investment policy has
constrained the ability of Fund Managers
to earn higher returns on the
GPFs.
These constraints were also compounded
by the non-constitution of the
Investment Advisory Committee (IAC)
between 2017 and 2019, leading to organizations
such as PIAC citing
breaches of the PRMA.
“We find that 74% of the withdrawals
from the GSF have been used
for debt repayment, while 21% has been
allocated to the Contingency Fund to
deal with national emergencies such as
the COVID-19 pandemic. Interestingly,
only 4% has been utilised to shore up
ABFA shortfalls.”
Dr. Tenkorang further mentioned
that these debt repayments are symptomatic
of developments within the
Ghanaian economy over the past
decade, adding, that due to low domestic
revenue mobilisation, increased interest
payments have occasioned
excessive borrowing (both domestically
and externally) to meet budgetary
shortfalls.
“Ghana’s debt servicing needs have
become expensive due to the high
coupon rates and volatility of the cedi,
the local currency. Given the historically
low returns, there is a need to rethink
the GPFs' investment strategy to
generate comparable returns to a
benchmark portfolio”, PIAC said.