Business Analyst - June 16

BUSINESS MARKET RATES

US$ 1 – GH¢7.80

GHANA STOCK WED, 15 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 16, 2022. Vol. No. 165

GH¢2.50

• Vice

President

Bawumia

• Dr. Ernest

Addison,

Governor

of BoG

GHana Interbank

Payment and

Settlement System

(GhIPSS) Instant

Pay transactions

hit GH¢31.4 billion in 2021, from

GH¢420,000 in 2016 as electronic

payment systems continue to

grow rapidly.

In tandem, both the value of

mobile money transactions and

registered mobile money agents

also increased thirteen and fourfold

respectively in 2021.

another key development

was that Ghana’s cash usage

Thursday, June 16, 2022

US makes biggest interest

rate rise in almost 30 years

THE US central bank has

announced its biggest interest

rate rise in nearly 30 years as it

ramps up its fight to rein in

soaring consumer prices.

The Federal Reserve said it would

increase its benchmark rate by three

quarters of a percentage point to a range of

1.5% to 1.75%.

The rise, the third since March, comes

after inflation surged unexpectedly last

month.

More rises are likely, the bank said.

Forecasts released after the meeting

showed officials expect interest rates could

reach 3.4% by the end of the year, a move that

will ripple out to the public in the form of

higher borrowing costs for mortgages, school

loans and credit cards.

as central banks around the world take

similar steps, it marks a massive change for

the global economy, where businesses and

households have enjoyed years of low cost

loans.

"Most advanced economy central banks

and some emerging market central banks

are tightening policy in sync. That is a global

environment that we've not been

accustomed to in the past few decades, and

that will represent ramifications for the

business sector and for consumers

throughout the world," said Gregory Daco,

chief economist at strategy consulting firm

EY-Parthenon.

In the UK, where consumer prices

jumped 9% in april, the Bank of England is

expected to announce its fifth rate rise since

December on Thursday, pushing its

benchmark rate above 1% for the first time

since 2009.

Brazil, Canada and australia have also

raised rates, while the European Central

Bank has outlined plans to do so later this

summer.

In the US, which slashed rates to support

the economy when the pandemic hit in 2020,

the Fed has already raised rates twice this

year, by 0.25 percentage points in March and

another half point in May.

at the time, Federal Reserve chairman

Jerome Powell said officials were not

considering sharper rises.

But figures on Friday, which showed US

inflation rising to 8.6% in May - the fastest

pace since 1981 - pushed officials to move

more aggressively, Mr Powell said.

"Inflation has obviously surprised to the

upside over the past year and further

surprises could be in store," he said. "We

therefore will need to be nimble."

Many analysts say the Fed is struggling

to catch up, after inflation started to emerge

in the US last year, sparked by a stronger

than expected economic rebound from the

shock of the Covid-19 shutdowns.

With demand surging, helped by trillions

of dollars in government pandemic relief,

including direct cheques to households,

officials, including Mr Powell, initially

dismissed the price rises as transitory,

arguing they would abate as supply chain

issues related to the virus resolved.

But the problems have proven persistent,

as new outbreaks of virus variants and

ongoing Covid-19 shutdowns continue to

disrupt activity, and the war in Ukraine

propels global food and energy prices higher.

Recent surveys suggest the public

expects the problem to continue to worsen,

despite the Fed's vows to act.

"The Fed is under the gun and facing an

inflation credibility test," said economist

David Beckworth, senior research fellow at

the Mercatus Center at George Mason

University.

The last time the Fed announced a rate

hike of this size was 1994.

By acting late, and now moving more

aggressively to compensate, policymakers

face a greater chance that their actions will

induce a downturn, Mr Daco said.

"I'm increasingly worried," he added. "I

wouldn't be surprised that around the turn

of the year we face an environment where

growth is stalling and we're pretty close to a

recessionary environment, with the

unemployment rate on the rise and no

longer declining."

Projections released by the Fed show

officials expects economic growth of 1.7%

this year, a full percentage point lower than

they forecast in March.

Unemployment is expected to rise to

3.7%. officials also removed a line from their

end of meeting statement - which typically

shows little change and is closely scrutinised

- saying that they expected the labour

market to remain strong and inflation fall

back to the bank's 2% target.

Inflation expectations

Ignacio Lopez is eager to see inflation

brought under control.

For the last 18 months, the Boston-based

chef has been watching food prices climb as

he stocks up for his restaurant. Prices for

items with complicated supply chains, like

packaged goods and imported cheese, are

particularly under pressure, he says.

"It's crazy and it doesn't stop," he says.

"Every week things go up."

The business has raised its own prices to

offset the costs, but he says he can't go too far

without losing customers. So his profits are

still taking a hit.

He says he is worried that the rate

increases won't help, noting that demand

remains weak due to Covid, which has cut

into the after-work gatherings that used to

drive his business.

"We're just going to keep managing it as

tight as we can, trying not to increase our

prices beyond our market and hope things

calm down," he says.

Police probe shock mass abduction reports in Abuja

PoLICE in nigeria say they are

investigating a reported mass

abduction in the capital abuja.

Kidnappings for ransom by

armed gangs are becoming

increasingly common across

the country.

But what is extraordinary

in this case is that one of the

alleged hostages posted a

tweet and sent a Whatsapp

message sharing their location

and appealing for help as they

were being driven away by the

gunmen to an unknown

destination.

That is how the news of

the kidnappings first came to

public attention - prompting a

social media outcry for the

authorities to act to rescue

them.

The Twitter poster said

there were 17 hostages,

including three pregnant

women and two children,

kidnapped from different

parts of the nigerian capital,

abuja.

The post got nearly 40,000

retweets and more than 2,500

people sent messages - many

of them urging the nigerian

authorities to take action.

The Federal Capital

Territory command of the

nigeria police said

investigations were ongoing,

called for calm and thanked

those who had given what

they described as ‘’helpful

information’’.

The nigerian authorities

are facing increasing criticism

for failing to tackle widespread

insecurity in the country

including frequent killings

and kidnappings.


GhIPSS Instant Pay hits GH¢31.4bn

• Continued from front

measured by currency in circulation as a

ratio of Gross Domestic Product (GDP)

declined from 6.8% in 2016 to 4.7% in 2021.

In addition, Ghana’s cheque usage per

capita, which was 25.67 in 2016 declined to

18.9 in 2021.

Speaking at the launch of GhanaPay, a

mobile bank wallet for Banks, Savings and

Loans Companies as well as Rural and

Community Banks, Governor of the Bank of

Ghana, Dr. Ernest addison said Ghana’s

progress in migrating to electronic

payments has been laudable.

according to him, the emergence of

new business models in the banking sector,

together with partnerships with financial

technology (FinTechs) companies in the

offering of payment-related services, has

also helped to bridge the financial inclusion

gap.

• BoG Governor lauds progress in

migration to electronic payments

Beyond the opportunity to compete

directly on product offerings and quality of

services, the Governor said the bank-

FinTech collaboration would help in the

realization of common objectives and

enable participants to achieve economies of

scale in the expansion of the payment

networks, as well as reach a critical mass of

financial inclusiveness in the country.

“This collaboration is commendable

and should therefore be sustained since

payments represent an indispensable

activity for businesses and individuals.

Improving efficiency in financial

transactions through electronic payments

would not only increase productivity but

also minimize costs”, he mentioned.

“Today’s launch of GhanaPay is one of

such innovations in the financial sector

that seeks to address some of the challenges

associated with the current bank-centric

models by providing an open application

that leverages on the network

infrastructure of the entire banking

industry”, Dr. addison added.

With GhanaPay, merchants do not

necessarily need to maintain banking

relationships with several banks to receive

bill payments from other bank customers.

In addition, customers only need to

maintain an account with a bank to make

bill payments to the entire network of

customers and merchants registered with

GhanaPay.

GhanaPay, therefore, facilitates resource

pooling from the entire banking industry

and reduces duplication. It is expected that

the industry will be guided by this

innovation and continue to retool and

respond to the changing environment.

In a speech to launch the system, Vice

President, Dr. Mahamudu Bawumia,

announced that the new digital age

requires collaboration from all stakeholders

including the financial services providers in

ensuring a secured payment ecosystem.

Chief Executive of GhIPSS, archie Hesse,

said the platform will be used to tackle the

challenge facing the rural unbanked

population.

according to him, this is critical for the

digital economy agenda.

“This initiative gives the banks an

opportunity of a platform to issue mobile

money accounts to customers and

individuals that can’t secure banking

account for one reason or the other. So, we

don’t rely solely on the fintech and mobile

money agents for transactions on the

mobile money platform”

Bawumia launches bank-wide

mobile money service, GhanaPay

THE Vice President Dr Mahamudu Bawumia,

yesterday launched the GhanaPay Mobile

Money Service in accra.

The GhanaPay is the first bank-wide

mobile money service by universal banks,

rural banks as well as savings and loans

companies to individuals and businesses.

The GhanaPay service, which operates

like the existing mobile money service,

with additional banking services, is opened

to everyone with access to a mobile phone

(including a yam phone) with or without a

traditional bank account.

Speaking at the launch, Vice President

Bawumia described the introduction of the

GhanaPay mobile money service as "another

ground-breaking initiative", as the

service, he added, further expands the government's

vision for financial inclusion to

all Ghanaians through digital banking.

"one of the biggest challenges that we

faced as a country was the huge unbanked

population. For a long time, over 70 percent

of the adult population was unbanked.

However, thanks to reforms in the payment

channels, we have significantly reduced the

unbanked population," said the Vice President.

"It is heartwarming to know that the

banking sector is increasingly looking for

ways to extend financial inclusion to all

Ghanaians. It is clear that the entire economy

is being transformed to what I want to

call from analogue to digital. The benefits of

this transformation, which is literally

sweeping across every sector of the economy,

are enormous and we can readily see

and experience some of the benefits," he

added.

"Let me therefore, commend the Ghana

association of Banks, GhIPSS and all institutions

that from the very beginning, believed

in this vision and have supported it

all through to this point

"at the rate at which Ghana is adopting

digitisation, it is clear that in the near future,

almost every part of our lives will be

driven by digitization."

While commending banks and other

stakeholders for coming together to introduce

the GhanaPay, Dr. Bawumia was optimistic

greater financial inclusion will soon

be achieved in the country through digital

financial service.

"I am particularly excited that the

banks have closed their ranks and come together

to introduce a shared electronic wallet,

which has been christened GhanaPay. I

see this as a huge avenue for banks to rapidly

bring more people into the banking

space,"

"GhanaPay takes care of the bottlenecks

associated with the opening of formal bank

accounts, so the banks should be able to use

the GhanaPay platform to massively reduce

the traditionally unbanked population."

"I know we can bring it (number of unbanked

Ghanaians) down further and one

of the channels to achieve this is through

digital financing services; that is leveraging

the increasing adoption and usage of the

mobile wallet because of its ease of use."

The GhanaPay, which is positioned between

mobile money, offered by telcos and

banking, offered by banks, can be downloaded

on Google Play Store or on apple

Store.

Just like the existing mobile money

services, the GhanaPay, once registered, can

be used to send and receive money to and

from mobile networks and bank accounts.

It can also be used to cash in and cash out,

buy airtime, data, and also pay for goods and

services through a GhQR merchant.

By launching the GhanaPay mobile

money service, Ghana has achieved another

digital payment landmark by becoming the

first country in the world to implement a

bank-wide mobile money service.

Prices of petrol, diesel to go

up between 10% and 15%

FUEL prices will go up sharply again between

10% and 15%, beginning today, June

16th, 2022.

according to the Institute for Energy

Security (IES), the price of petrol will increase

by about 10% to sell above

GH¢11per litre and diesel by about 15% to

sell above GH¢14 per litre.

The Price of Liquified Petroleum Gas

(LPG) is however projected to fall further

by 5% from its current price.

The IES attributed the increment to

the 0.86% depreciation of the cedi and the

international market price increase of

14.81% for petrol and 17.67% for diesel.

It said the decision by oPEC+ at the

beginning of the window to boost its production

quotas did not have the desired

effect on oil markets, with prices having

increased since then.

The main reason for this upward

pressure is that the world’s spare oil production

capacity is extremely tight causing

prices to spike above $110 per barrel

and have since stayed beyond $115 staying

above $122 per barrel by the end of the

window.

The IEs further noted that close to the

end of the window, Libyan oil production

and exports were set to drop again after

two export terminals were blocked on

Thursday, and protesters threatened on

Friday to close another oil port. This was

after the largest oilfield, Sharara, restarted

oil production this weekend following

weeks of shutdown over protests.

again, with China gradually opening

its economy up for consumption, prices

began to tick up, reaching close to $124

per barrel only to fall back close to $120

per barrel after Beijing reimposed restrictions

it had earlier lifted in the Shanghai

district.

Prices of fuel on the local market increased

by over 4% on average terms in

the just ended pricing window as predicted

by the IES.

The price of petrol and diesel increased

by 5% and 3%.

all oil Marketing Companies (oMCs)

monitored in this window increased their

prices at the pump.


LET'S TACKLE

UNEMPLOYMENT AND

CREATE WEALTH FOR ALL

ONE of the major political promises made by

governments over the years has been job creation

for the teeming youth.

This promise often resonates with the people

because of the precarious joblessness situation in

the country.

The country’s unemployment rate is reported

to be at an all-time high after increased

population and low economic output pushed the

rate back into the double digits as at the last

count.

A Ghana Statistical Service (GSS) report

showed that the percentage of people who are

available for work but are unable to find jobs had

doubled to 13.4 per cent in 2021 from the 5.3 per

cent recorded in 2010.

The 2021 figure, which was announced in the

General Report on the 2021 Population and

Housing Census, is now the highest since 1984 –

when the country’s unemployment data was first

reported.

What is even more startling is the fact that out

of the economically active population of 11.54

million, the report showed that 1.55 million were

unemployed.

The youth between the ages of 15 and 24

years were the worst hit, according to the report.

Overall, Ghana’s population increased to 30.8

million in 2021 from 24.7 million in 2010,

according to the census report.

The Graphic Business finds the rate of

unemployment in the country scary and a cause

for concern, hence the breakfast meeting with

Stanbic Bank Ghana to elicit the views of experts

on how to help reduce the rate drastically.

We find it most unfortunate that for many

decades, governments have not been able to

work out pragmatic strategies to solve this canker

which has also been described variously as a

national security threat.

Ahead of the breakfast meeting, an

economist, Dr Sam Ankrah, called on the

government to take pragmatic steps to ensure

that the country adds value to all of its raw

materials before exporting them.

According to him, with such a deliberate

policy, more companies would be set to create job

avenues for the mass of the people and reduce

the present unemployment figures to the barest

minimum.

Stakeholders in the agricultural sector the

paper spoke with ahead of the breakfast meeting

also described the sector as another low hanging

fruit the government should invest in and make

more attractive to entice the youth to venture

into.

We find these calls apt and think that it is time

to take the suggestions more seriously if we are

to change the fortunes of our youth.

The ultimate time

management lesson:

Time asset vs. Time debt

By Maxwell Ampong

on my growth

trajectory, I am fast

realising that the best

way to absorb the

wisdom of those that

are ahead is by getting answers to

the “why” and not the “what”.

Because the why’s get you how they

think, the why’s are like an

algorithm that can solve not one

specific problem but a set of them,

even if it spits out a different

version of “what” you are to do from

“what” they are doing. Get it?

The most productive men and

women in the world often speak

about the importance of time

management. We keep asking them

“what” their time-management

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 day.

I tried it. It didn’t work, at least

not the way I thought it would. The

“you have 24hrs, make the most out

of it by spending as much time on

the job” didn’t make me as

productive as I thought it would. oh

but it kept me busy, very busy. I have

learnt that by merely doing more,

you create more to do which creates

more that creates more and like a

virus, all your time starts getting

eaten up.

So I looked to the man I usually

look to for Productivity gems and he

did not disappoint. James Clear

reminds me of my friend alan. He’s

all about systems. When a system

doesn’t work, then it doesn’t work. a

working system frees you to do

other thing without neglecting

what’s at hand. Because when a

working system works, you work.

Get it?

That’s what I am currently

attempting to implement, a version

of Time Management that is all

about systems taking over tasks. I

am attempting to create systems so

you can spend time on other things

rather than fixating on mundane

repetitive tasks. For instance, I want

to be productive while spending

more time with my wife and young

daughter and so far, so not bad at all.

It’s working.

Enjoy this James Clear article

reproduction. I hope it flicks a

switch for you as it did for me.

Enjoy! Good morning.

a Different Way of Thinking

about Productivity

Late in his career, Steve Jobs

famously drove his car without a

license plate.

There were all sorts of theories

about why Jobs decided to drive

without tags. Some people said he

didn’t want to be tracked. others

believed he was trying to make a

game of avoiding parking tickets.

Jon Callas, a former computer

security expert who worked for

apple, revealed a different reason.

according to Callas, Steve Jobs

discovered a loophole in the

California vehicle registration laws.

anyone with a new car had up to six

months to get a proper license plate

for their new vehicle. During the

first six months, however, you could

simply drive the vehicle without a

license plate.

once he realized this, Jobs

arranged a special leasing

agreement with his Mercedes dealer

so that every six months he would

drop off his current car and receive

a new Mercedes SL55 aMG to

replace it. This meant that he never

drove a car older than six months

and he never had to go to the

Department of Motor Vehicles to get

a license plate.

after hearing the story, many

people responded by saying

something like, “I guess that’s what

you do when you have a lot of

money.” and, to be fair, it is true that

this license plate strategy isn’t

reasonable for most people on the

planet. If you look deeper, however,

you’ll notice that something else

was happening: Steve Jobs was

building a Time asset.

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 afterwards. You pay

an upfront investment of time and

get a payoff each day afterwards.

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 shortlist 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

require a lot of emails. Using

scheduling software eliminates this

problem and lets people choose

from a pre-selected list of available

times.


GOIL pledges to consolidate

lead in aviation market

GHana oil Company

Limited

(GoIL) has pledged

to consolidate its

lead in the aviation

market as it recorded a

21% growth in aviation business

in 2021.

The biggest contribution to

sales revenue came from two

main products, “diesel” and

“super” of which Ron 95 variety

is the market leader.

Board Chairman, Reginald

Daniel Laryea, disclosed this at

the company’s 53rd annual

General Meeting in accra.

according to him, “our mix

• Shareholders to get

¢0.047 per share dividend

of other products including lubricants

and specialized sales

to specific industries like the

mines and bunkering achieved

mixed results, their contribution

to the bottom-line was

however positive”.

The company did not lose

any customers in the mining

sector, and increased sales volumes

by 32% due to increased

operations of the customers.

Meanwhile, shareholders of

GoIL approved a dividend of

¢0.047 per share for the 2021 financial

year.

This is slightly higher than

the ¢0.045 approved in the previous

year.

The Board Chairman said

GoIL’s financial performance

for last year showed strong recovery,

amid CoVID-19 pandemic,

registering a profit of

¢98.74 million.

according to him, despite

the challenging 2021, the company

managed to improve

upon performance volumewise,

as the volume of sales was

approximately 886.6 million

liters, about 11% above that of

the previous year.

He added that GoIL’s financial

performance showed recovery,

registering a profit after

tax of ¢98.74 million, up by 9%

compared to the year 2020.

However, the company is

yet to achieve a figure higher

than the corresponding figure

registered prior to the year 2020

which was approximately ¢105

million.

Earnings per share increased

from ¢0.23in 2020 to

¢0.253 in 2021

Total assets also increased

from ¢2.1 billion in 2020 to approximately

¢2.5 billion in 2021

ADB, Pioneers in Global Remittance Services in Ghana

BY SELORM AMEVOR, HEAD, MARKET-

ING & COMMUNICATIONS AGRICUL-

TURAL DEVELOPMENT BANK PLC

THE International Day of

Family Remittances (IDFR)

was adopted by the United

nations General assembly

and is observed on 16 June

every year.

The agricultural Development Bank

PLC(aDB) was the first Bank in Ghana

to introduce remittance services to the

Ghanaian public.

In 1995, aDB became the sole agent

for Western Union in africa with all

other banks and agencies like Global access

and Ghana Post acting us subagents.

The Bank enjoyed the exclusive

right till 2009 when the Bank in its effort

to serve its customers with other remittance

services came into an

agreement with Western Union to allow

other interested parties to become

agents.

With over 87 branches nationwide,

customers in peri-urban areas are able

to receive money from their loved ones

abroad.

So that with aDB remittance services

customers in areas like Juaboso,

Tumu, Wa, Kpassa are able to receive

money from their loved ones abroad

without having to travel to the capital

city.

The Bank is currently in partnership

with top leading remittance agencies

across the world, with the aim of providing

secure, convenient and reliable

service to its customers.

Western Union International

Western Union is the leading

money transfer organization across the

globe. This makes the Bank one of the

leader in the remittances business in

the country.

MoneyGram

MoneyGram is currently the second

leading worldwide remittances. as

usual aDB has been a key partner of the

operators of this product since 2009

thus establishing an enviable relationship

with them. Currently aDB is

among the leading providers of this

service.

The Bank is the sole partner for

Moneygram’s flagship product, Cash-toaccount,

where transactions are automatically

deposited into customers

account directly.

Ria Money

Ria is the third largest worldwide remittance

company in the World. Their

mission is to be the most progressive

money transfer company in the world,

offering service excellence and the most

competitive and reliable remittance

payment services to its customers. Ria is

also committed to best-in-class business

relationships with its global agent

and correspondent network, based on

the principles of mutual respect, fairness

and generally accepted business

practices. The Bank has been in relationship

with the operators of Ria for

over the past ten years.

additional Products:

In addition to the above products,

aDB also in partnership with various

MTos to operate the following remittances

services

a. Transfast Money Transfer

b. UnityLink Money transfer

c. Zeepay

SUB-aGEnCY

In ensuring that the remittance

services are available throughout the

country, aDB has collaborated with one

of the organizations in the country with

the widest network, Ghana Post Company

Ltd, for them to provide these services

at their over 150 post offices across

the country. This has lessen the burden

of those who hitherto needed to travel

to the city centers to redeem their remittances

sent to them by loved ones.

aDB currently offers Remittance

Services in all its 87 locations nationwide

with 26 of its branches offering

weekend services and six branches

namely accra new Town , Ring Road

Central, abeka Lapaz, Madina , Kasoa

and nungua branches opened to the

public on holidays for remittance services.

Happy International Day of Family

Remittances.


Transforming manufacturing

sub-sector’s performance and

contribution to GDP

THE rapid development of the

Ghanaian economy is predicated

on effective functioning of its

various sectors. Therefore, it

would be economically suicidal

to supervise any sector of the economy to its

dissipation. To avert any economic dissipation,

it has become increasingly necessary to

identify ways in which the under-performing

sectors of the Ghanaian economy could

be transformed to increase their potential

contribution to GDP.

Industrial Sector Performance

The industrial sector remains one of the

three major sectors of the Ghanaian economy.

Table 1 and Figure 1 depict components

of the industrial sector, including mining

and quarrying, manufacturing, electricity,

water and sewerage, and construction. The

fourth column in Table 1 presents values for

electricity, water and sewerage. Values for

the period, 2000 through 2005 in the column

cover electricity and water; while values

from 2006 through 2018 include electricity,

water and sewerage. The latter component

(sewerage) was included following rebasing

of the Ghanaian economy in 2011 using 2006

as the base year.

Data in Table 1 and Figure 1 reveal steady

increase in contribution values for each of

the components to the industrial sector between

2000 and 2005. However, these values

were significantly low compared with values

recorded from 2006 through 2018. The significant

increase in values of the industrial sector

components and components of the

other two sectors (agricultural and services

sectors) could be attributed largely to rebasing

of the Ghanaian economy in 2011 and

2017 using 2006 and 2013 as the respective

Table 1: Performance of Industrial Sector Components – 2000 To 2018

Year Mining & Quarrying Manufacturing. Electricity & Water Construction

2018 37,999.00 31,441.00 5,648.00 19,683.00

2017 25,917.00 26,860.00 5,805.00 19,433.00

2016 16,831.00 23,922.00 4,791.00 15,165.00

2015 17,131.00 20,506.00 4,162.00 15,357.00

2014 21,705.00 17,605.00 2,274.00 12,183.00

2013 15,933.00 14,523.00 2,007 10,641.00

2012 2,221.00 2,437.00 460 2,541.00

2011 2,116.00 2,242.00 436 2,339.00

2010 690 1,984.00 429 1,949.00

2009 581 1,844.00 398 1,902.00

2008 544.4 1,868.00 370 1,739.50

2007 531.6 1,801.30 345.2 1,251.60

2006 497.4 1,823.50 367.1 1,016.30

2005 33.7 58.9 17.45 55.5

2004 31.7 56.1 15.5 50.1

2003 30.8 53.6 15 47.3

2002 29.4 51.3 14.4 44.6

2001 28.1 48.9 13.8 42.5

2000 28.60 47.2 13.2 40.5

base years.

We observe significant increase in manufacturing

sub-sector’s performance from

2006 through 2018. However, the sub-sector’s

performance was more phenomenal from

2013 to 2018. The value recorded for the manufacturing

sub-sector in 2013 (GH¢14.523 billion)

was about 5.96 times the value recorded

during 2012 (GH¢2.437 billion). average contribution

of the manufacturing sub-sector to

the industrial sector from 2013 through 2018

was GH¢22.476 billion, a little lower than the

average contribution of mining and quarrying

(GH¢22.586 billion) during the same period.

Figure 1: Performance of Industrial

Sector Components – 2000 To 2018

available data in Table 1 and Figure 1 affirm

consistent dominance of the manufacturing

sub-sector in terms of performance

and contribution to the industrial sector

from 2000 through 2012. However, its dominance

from 2013 through 2018 was interspersed

with intermittent “takeovers” by

mining and quarrying during 2013, 2014, and

2018. Values for mining and quarrying witnessed

considerable increase following the

discovery and production of crude oil in

commercial quantities from 2010. The initial

contribution of crude oil to mining

and quarrying during 2010 was GH¢65

million; this figure surged to GH¢1.372 billion

during 2011.

average contribution of the construction

sub-sector to the industrial sector

over the period 2000 through 2018 was

about GH¢5.552 billion. This figure was

about 3.82 times the average contribution

of electricity, water and sewerage

(GH¢1.452 billion) during the same period.

Further statistical analysis in subsequent

sections facilitated our assessment of significance

of manufacturing sub-sector’s

contributions to the industrial sector, national

gross domestic product, and global

manufacturing values.

Performance of Key Economic Sectors

Contributions of key sectors of the

economy, including agricultural, industrial

and services sectors, to Ghana’s gross

domestic product (GDP) over a nineteenyear

period (2000 through 2018) are presented

in Table 2 and Figure 2. Data in the

table and figure show net of indirect taxes,

a fourth component that is included in the

computation of Ghana’s GDP for a given year.

Data in Table 2 and Figure 2 reveal relatively

close contributions of the agricultural and

industrial sectors to Ghana’s GDP.

an obvious “outlier” in the contributions

to Ghana’s GDP is the services sector. This

sector, on average, has consistently contributed

about GH¢117.379 billion to Ghana’s

GDP from 2012 through 2018. The sector’s

contribution affirms its invaluable contribution

to the development and growth of the

Ghanaian economy. Data on percentage contribution

of each of the three sectors to

Ghana’s economy from 2012 through 2018

are presented in Table 2.1 and Figure 2.1.

Data for the selected period were computed

using values in Table 2. Difference between

the sum of percentage contributions of the

three sectors for each period on one hand

and 100% on the other, helps in determining

the percentage contribution of net of indirect

taxes.

Table 2.1: Contribution of Each

Sector to GDP (%) – 2012 To 2018

Year Industry agriculture Services

2018 31.53 18.27 43.01

2017 30.4 19.7 42.74

2016 28.23 20.98 43.09

2015 31.68 20.25 39.54

2014 34.59 20 36.11

2013 34.86 20.45 39.15

2012 25.45 21.91 46.93

average 30.96 20.22 41.51

Statistics in Table 2.1 and Figure 2.1 affirm

average contribution of the services

sector to GDP in percentage terms from 2012

through 2018 was about 41.51%. Similarly, average

contribution of the agricultural sector

to Ghana’s GDP within the seven-year period

in monetary terms was GH¢35.727 billion;

while the sector’s percentage contribution

to GDP over the same period was about

20.22%.

This compared slightly with industrial

sector’s respective average percentage contribution

of about 30.96%; and monetary

contribution of GH¢56.454 billion over the

seven-year period. It is worth-emphasising a

significant portion of manufacturing activities

thrives on the availability of raw materials

from the agricultural sector.

Thus, the agricultural sector propels

growth in the manufacturing sub-sector;

and by extension, the industrial sector. This

is indicative of the existence of a strong relationship

between these two key sectors. That

is, agricultural and industrial sectors of the

Ghanaian economy.

Figure 2: Economic Performance

of Various Sectors – 2000 To 2018

Data in Table 2 and Figure 2 depict con-

*Values in Millions of Ghana Cedis (GH¢) Sources: Bank of Ghana

(BoG) & Ghana Statistical Service (GSS) • Continued on Page 7


Transforming manufacturing sub-sector’s

performance and contribution to GDP

• Continued from Page 6

sistency in Ghana’s GDP growth

from 2000 through 2018. The data

show consistency in the performance

of agricultural and industrial

sectors over the period. However,

the services sector experienced

some downturns during 2004 and

2005. Data in Table 2.2 and Figure

2.2 provide details on growths in

the performance of the various sectors

of the Ghanaian economy and

GDP over a seven-year period. That

is, from 2012 through 2018. Statistics

in Table 2.2 and Figure 2.2 were

computed using values in Table 2.

Figure 2.1: Contribution of

Each Sector to GDP (%) – 2012

To 2018

Comparative analysis of the

three main sectors using available

data in Table 2.2 and Figure 2.2 reveals

the industrial sector recorded

the highest growth rates over the

period, followed by agricultural and

services sectors respectively.

The data show significant increase

in growth rates across all

the sectors in 2013; and fairly stable

growth rates in subsequent years.

The growth rates recorded in 2013

could be attributed to rebasing of

the Ghanaian economy in 2017

using 2013 as the base year. average

growth rate recorded by the industrial

sector over the seven-year period

(2012 through 2018) was about

79.62%.

The respective average growth

rates recorded by the agricultural

and services sectors during the

same period were 52.78% and

51.89%. It is observed, in spite of

the challenges that confronted the

industrial sector from 2014

through 2017 it continued to maintain

an impressive average growth

rate above the agricultural and

services sectors during the research

period.

The average growth rate in

Ghana’s GDP over the seven-year

period was about 59.53%. The data

showed inconsistency in GDP

growth rates over the period, although

the consistent increase in

GDP values over the period is observed

in Table 2.

Table 2.2: Sectors and GDP

Growth Rates (%) – 2012 To 2018

Year Industry agric Services

GDP

2018 21.36 8.64 17.85

17.11

2017 28.51 12.05 18.36

19.34

2016 6.22 23.52 29.92

19.22

2015 6.3 17.5 27.08

16.06

2014 24.74 22.92 15.96

25.7

2013 462.79 283.47 242.71

310.81

2012 7.39 1.35 11.32

8.5

a major setback to the industrial

sector’s contribution to GDP

and its growth in 2016 was a negative

growth rate recorded by the

electricity sub-sector in that year.

With improved electricity generation

and strong oil exploring activities,

the industrial sector recorded

significant growth during 2017.

Rigorous activities introduced

in the agricultural sector such as

the planting for food and jobs initiatives

shored up the sector’s

growth and contribution to GDP

during 2017; and expected to contribute

meaningfully to the sector’s

growth in subsequent years.

Measures put in place by the government

through its sector Ministry

to streamline activities in the

financial sub-sector were expected

to improve performance of the

services sector to assure its significant

growth and contribution to

Ghana’s GDP in the medium- and

long-term.

Figure 2.2: Sectors and GDP

Growth Rates (%) – 2012 To 2018

Some of these “hardline” measures

include increase in minimum

capital requirement for universal

banks from GH¢120 million to

GH¢400 million; and the decision

to issue GH¢10 billion bond to retire

the energy sector debt, among

others.

The latter measure was intended

to settle government’s indebtedness

to the commercial

banks to reduce the surging

amount of non-performing loans

which stood at about GH¢6.2 billion

at the end of 2016; create room

for more liquidity in the financial

sub-sector to allow commercial

banks to process more loans for individuals,

investors and businesses;

and to allow government to

ensure a reduction in the average

lending rate charged by universal

banks and other lending institutions

on loans in the country.

Recommended Measures

Strengthening the relationship

between the agricultural and industrial

sectors is essential to positive

prediction of accelerated

development and growth of the

Ghanaian economy. It is believed

effective adaption and implementation

of cogent, strategic and diligent

measures would result in

significant growth in the agricultural

and industrial sectors while

making remarkable contributions

to Ghana’s GDP. In view of the foregoing,

the ensuing recommendations

are proffered. The global

economy is driven by information

technology and industrialisation.

The latter plays a significant role

in the economic success of many

advanced and emerging economies

such as China, United States of

america, Germany, Brazil, India,

and Indonesia, among others.

Therefore, it is imperative for

Ghanaian leaders to consider industrialisation

and for that matter

manufacturing as one of the

bedrocks for national development,

success, prosperity; and economic

perpetuity.

To this end, manufacturing activities

should form an integral

part of Ghanaian leaders’ scheme

of programmes aimed at ensuring

equitable distribution of resources

and development of various communities;

creating job opportunities,

especially for the youth; and

accelerating national development

and growth.

Existing national enactments

related to investments in the manufacturing

sub-sector by local and

foreign investors must be activated

and implemented; and where necessary,

reviewed to serve as an effective

attractive tool to all

investors. The current administration’s

resolve to amend Ghana’s

Company act of 1963 is laudable.

The amended Company act is expected

to be more investor-friendly

to help attract more local and foreign

investors into the Ghanaian

economy, especially into the manufacturing

sub-sector.

The amended Company act is

expected to be a “game changer” in

the area of foreign direct investment

(FDI) for Ghana’s economy.

The presence of multinational

companies through foreign direct

investment would facilitate innovativeness

and competitiveness of

indigenous firms in the manufacturing

sub-sector. This would enhance

the quality of final products

to extend the market frontiers beyond

the immediate Ghanaian

market to Sub-Saharan africa and

global markets.

Results from test of hypothesis

one revealed positive, but non-significant

relationship between the

manufacturing sub-sector and industrial

sector of the Ghanaian

economy. Similarly, results from

the test of hypothesis two indicated

positive but non-significant

relationship between the manufacturing

sub-sector and Ghana’s GDP.

However, annual data released for

the manufacturing sub-sector are

not only impressive but also appear

significant to both the industrial

sector and national gross

domestic product.

Sad to relate, the statistical

analysis indicated annual data presented

for the manufacturing subsector

are not representative of the

subsector’s performance. Stated

differently, the annual manufacturing

data do not reflect the subsector’s

actual performance; it

implies stakeholders in the manufacturing

sub-sector do not present

statistical data on the sub-sectors

actual annual performance.

To address this phenomenon

and remedy the situation, stakeholders

must ensure due diligence

in the collation and release of annual

data for the manufacturing

sub-sector to assure reliability and

credibility of same.

Expedition of government initiatives

such as the one District,

one Factory programme through

early identification of strategic investment

partners would be useful

to the course of accelerating

growth in the manufacturing subsector.

Initial strategic partnerships

at the national level may be

bureaucratic, time-consuming;

and would require due diligence

from both parties.

Where the foregoing processes

are stalling the materialisation of

the one District, one Factory concept,

government could initiate establishment

of the factories in the

various or selected districts; and

allow private participation at a

later date. This would assure job

creation, utilisation of locally-produced

raw materials, increased

production, price stability, and increased

government revenue

through taxes.

Recent measures adapted and

implemented by the Bank of

Ghana to clean-up the financial

sub-sector yielded some positive

dividends; actions of the Regulator

ensured significant paradigm shift

from numbers to quality of banks

and specialised deposit-taking institutions.

This has improved efficiency

and effectiveness in the

operations of various financial institutions

across the country.

The general regulatory environment

plays a pivotal role in the

success of the manufacturing subsector;

and other businesses.

Healthy and vibrant financial subsector

serves as an attractive tool

for both local and foreign investment.

Therefore, the Regulator

must not rest on its oars; and not

relent in its efforts to ensure sanity

in the financial sub-sector.

The recent memorandum of

understanding (MoU) signed between

the Government of Ghana

and Toyota Tsusho Corporation for

the establishment of Toyota and

Suzuki assembly plant in Ghana;

and another initiative by the government

for the construction of a

fertilizer factory at Somanya in the

Yilo Krobo Municipality in the

Eastern Region of Ghana could

make Ghana competitive in the

areas of automobile manufacturing

and fertilizer production in the

West african Sub-Region. The Government

of Ghana could partner

Kantanka Group to increase its

productive capacity in the manufacturing

of cars in the country to

encourage and increase local participation

and investments in the

automobile industry.

The fertilizer production project

is intended to demonstrate and

promote economic use and management

of sanitation and waste

materials in the country. Similar

automobile agreements signed between

the Governments of Ghana

and Germany to assemble some

German cars in Ghana is commendable.

More of such agreements

are needed to introduce

variety and innovation to the manufacturing

sub-sector; and to boost

national GDP.

The Ghana association of national

Best Farmers must not only

exist in name; members or

awardees must justify their

achievements by providing the

requisite professional, technical

and intellectual assistance to

young and aspiring best farmers at

all levels: district, regional and national

levels.

Heads of various farmers’ associations

must periodically invite financial

advisors to provide

essential education on bookkeeping

to help members acquire and

enhance their basic financial

knowledge; and ease their access to

loans from commercial banks and

other lending institutions. This

would help increase farm yields to

meet the raw material needs of and

demands by industries in the manufacturing

sub-sector.

available statistics on population

trends in Ghana revealed the

youth constitute a significant portion

of the population. Consistent

with trends in many developing

economies, most young graduates

in Ghana come from less affluent

homes. as a result, it becomes very

challenging for these young graduates

to translate their innovative

entrepreneurial ideas in manufacturing

and agribusiness acquired

through their academic education

and other sources into production

and job-creation opportunities.


ICT

Digital representation

matters — Fostering Internet

inclusion among PWDs

In today’s world, the internet

has paved the way for the

advancement of humanity

into a new era. From

Polokwane to accra to nairobi

and across the continent of africa,

easy and meaningful access to the

internet is a driver for economic

growth; just as roads and railways

provided the arteries for commerce in

the Industrial Revolution.

Today’s internet infrastructure is

the circulatory system on which

much of modern life depends. The

covid-19 pandemic has presented us

with new ways of doing things where

most activities are done online.

activities such as e-learning, e-

commerce are at the heart of the

internet. We have moved from brickand-mortar

to click and order.

People with disabilities (PWDs)

are a group of people with special

needs and are faced daily with myriad

challenges that surpass different

aspects of their lives. Situating the

conversation in Ghana and africa by

extension. Evidence from the Ghana

Statistical Service (GSS) suggests PWDs

account for 3.7 percent of the

population. according to Statista, the

prevalence of disability in low -and –

middle-income countries (LMIC) is

higher than in high-income countries,

and the data shows close to 400 million

people live with a form of disability in

africa.

Moreover, in Ghana, internet

penetration has significantly improved

from 30.8 percent in 2018 to 50 percent

in 2021. However, the population of

PWDs in Ghana is high as anecdotal

evidence suggests, these people are still

underrepresented in technology jobs,

active participation in the civic

engagement of the internet, and

internet literacy.

People with disability are often

faced with barriers to education and

training, stereotyping— other people

presume they have a lower quality of

life. all these factors limit their job

opportunities leading to poverty, social

exclusion, and restricted access to

basic social amenities. PWD’s

limitations to the internet are mostly

shaped by the high cost of broadband

internet and adoption of ICT tools due

to low-income levels among PWDs and

lack of digital skills to scale up, reskill

and upskill.

In 2016, the United nations

identified accessibility of the internet

as a basic human right. It clearly

explains every individual needs

information for daily decision making

and the internet is one pivotal tool that

promotes self-development and active

participation in a democratic society.

Yet misconceptions, stereotypes, and

discrimination continue to be a barrier

that limits PWDs from realizing their

potential. With increasing

technological innovations and

digitization drive rolled out by the

government:

What does the digitization drive

mean for people with disabilities?

How do people with disabilities

access the internet and leverage that

for sustainable jobs?

What is the state of our

technological internet services, is it

inclusive for easy accessibility by

PWDs?

Way forward

The Sustainable Development Goal

(SDG) 8 seeks to promote sustained,

inclusive, and sustainable economic

growth, full and productive

employment, and decent work for all.

In line with this, it is necessary to

design educative and training

programs for PWDs which are in tune

or in alignment with the everchanging

aspirations, commitments,

wishes, longings, exigencies, and

demands of education curricula and

frameworks that will enable them to

acquaint themselves with modern

trends of technology.

Effective digital skills which

“People with disability

are often faced with

barriers to education

and training,

stereotyping— other

people presume they

have a lower quality

of life. All these

factors limit their job

opportunities leading

to poverty, social

exclusion, and

restricted access to

basic social

amenities.

consider fully equipping the individual

holistically are crucial in equipping

PWDs to improve on their standard of

living and bring out innovation and

ingenuity. In the past, training in

Information Communication

Technology (ICT), internet literacy, and

capacity building by governments have

often been without the needed spark as

its sustainability has suffered hiccups

due to administrative changes over

successive periods.

The Institute of ICT Professionals

Ghana since its inception in 2017 has

provided platforms for training and

mentoring, which seek to fully

embrace disability inclusion at every

level and be part of the solution. More

corporate bodies, institutions should

concertedly make efforts to ensure

PWDs are digitally included.

Furthermore, it is morally

imperative to be more inclusive

digitally, as the internet is for

everyone and should not be the

preserve of the privileged and selected

few. Thus, software developers and

content writers must design digital

experiences tailored to meet the

needs of people with physical

disabilities, speech difficulties,

hearing impairments, cognitive

impairments, and blindness.

Government departments and agencies

must develop, design, and curate

websites with a wider range of

experiences that comply with

international web accessibility best

standards, ensuring these websites are

easily accessible by PWDs.

as the pandemic continues to drag,

it has revealed a consequential digital

divide and online safety for PWDs.

Digital platforms have become

commonplace, and as such, best

policies and practices must be

incorporated. The policies should be

inclusive and accommodative of the

digital needs of PWDs in Ghana.

adjusting to a post-covid-19 world

presents an opportunity for

governments to reassess policies to

increase the inclusion of persons with

disabilities. In framing and

formulation of such policies,

legislations, and regulations,

consulting with people with

disabilities is critical, as their needs are

heard.

To conclude, Ghana cannot be left

behind in the comity of nations,

especially as the digital economy is set

to replace the traditional economy.

Leveraging on the internet is a driver

for economic growth and development,

bridging the already inequality in our

society. Internet inclusion matters.

Digital representation for all is key for

national development.

The Author is a Member, Institute

for ICT Professionals Ghana)

Thursday, Tuesday, June March 16, 2022 1, 2022

ENTERPRENEUR

Why worker loyalty

is at a breaking point

By Josie Cox

People are no

longer prepared to

return to prepandemic

ways of

working. If pressed

to do so, many may

choose to quit

instead.

aS vaccination rates

around the world tick

up, giving employers

the impetus to recall

people to the office,

businesses are confronting an

uncomfortable reality: employees’

needs and preferences have

changed. Many are no longer

prepared to return to the way of

working that was conventional

before the pandemic. If pressed to

do exactly that, millions are

choosing to quit instead.

This trend has gathered so

much momentum that academics

are now speaking of a fundamental

shift in power dynamics away from

employers and toward workers. If

businesses want to retain the loyal

talent they need to stay competitive,

experts argue they must listen to

the needs of the labour market and

adapt quickly.

The lessons from loss

almuth McDowall, professor

and assistant dean of the

department of organisational

psychology at London’s Birkbeck

University, explains that losses

during the last 18 months have

proven transformational.

“We’ve all experienced loss...

losing loved ones, losing our

freedom, losing human contact,”

she says. “Many of us also had to

juggle home-working with full-time

caring, as children were off school.”

These life events felt so

significant, says McDowall, that

they caused us to revisit our

priorities and sent many of us on a

quest for work that feels purposeful

– for a job that comes with some

greater form of meaning.

after a year of remote work,

some are challenging pre-pandemic

work conventions, like the need to

be present in offices (Credit: Getty)

Simultaneously, having seen

what is possible under extreme

circumstances, many workers feel

more prepared now than ever before

to challenge assumptions around

what an ideal worker looks like, and

what the parameters and norms of

the working world should be.

The effects of this momentous

rethink are starting to show. In

a survey of more than 2,000

people in the UK and Ireland

conducted in March, more than a

third of respondents said they were

looking to change roles in the next

six to 12 months, or once the

economy had strengthened. The

researchers concluded businesses

not actively catering to the evolving

needs and demands of employees

risked “sleepwalking towards a

talent exodus”.

In the US, meanwhile, data

indicate that such an exodus is

already under way. a record 4

million people quit their jobs in

april alone. Since then, the

resignation rate has eased, but

remains elevated.

a loyalty inflection point

anthony Klotz, an associate

professor of management at Texas

a&M University’s Mays Business

School, coined the term “Great

Resignation” in May. observing that

there were close to 6 million fewer

resignations in the US during 2020

than there were in 2019, Klotz

correctly predicted that, as the

pandemic subsides, the “would-be

quitters” who “sheltered in place” in

2020 were likely to act on their plans

to leave their employers.

“What we’re seeing now is a

clear decrease in organisational

an organisation,

you don’t just want

to capture people’s

bodies, ““As

but you

want to capture

their hearts too.

And it’s that bit

that’s going to

prove tough.”

commitment due to a confluence of

factors,” he says. Echoing McDowall,

he says that employees have gained

a new perspective on what’s truly

important to them – “the pandemic

brought death to our doorstep and

that causes people to reflect” — but

there are also other important

reasons why loyalties have wavered.

“Work takes up a huge part of

who we are. During the pandemic,

identities changed. People spent

more time with their families, some

might’ve thought more about

entrepreneurial ventures, side

hustles or other pastimes away from

their day job,” he says. “It’s quite

possible that many people no longer

define themselves as much through

their jobs as they used to.” That,

Klotz elaborates, “means that they

are less emotionally attached to

their employer”.

Flexibility over finance?

another element contributing

to employees’ dwindling

commitment is the decision by

some companies to require workers

to return to the office in person, as

in Marie’s case. In particular, the

finance sector has come under fire

for ordering workers back.

In May, Jamie Dimon, the CEo

of JPMorgan Chase & Co., which is

america’s largest bank, sparked a

backlash when he said that working

from home simply does not work for

those who want “to hustle”. and in

June, Morgan Stanley CEo James

Gorman said that if most employees

were not back to work at the bank's

Manhattan headquarters in

September, he would be "very

disappointed".

Globally, the culture of banking

is still rooted in face time

and presenteeism. Most financial

organisations champion the value

of in-person meetings to pitch for

business and hash out deals,

meaning that remote arrangements

were always only going to be

temporary. But in light of employees

becoming more discerning, this

might have to change too.

Regardless of the sectors,

explains Klotz, companies that are

ordering staff back into the office

full time with no exceptions are

going to have to find a way to “pitch

that in an appealing way”. To stay

competitive, businesses like banks

and tech companies – some of

which have adopted a remote

culture indefinitely but many of

which have not – must understand

that, while digital nomadism and

remote work were not widely

available before the pandemic, they

will be from now on.

neither Klotz nor almuth

McDowall necessarily anticipate an

industry-wide talent drain to

materialise – mostly because there is

such a broad spectrum of how

individual organisations look to be

structuring their post-pandemic

workplaces in any given sector – but

they both agree that businesses will

lose good employees if they are not

careful.

“Work arrangements is a brand

new and important criteria that

[employees] will care about going

forward,” says Klotz. “People will

want to choose the work

arrangement that is best for

whatever stage of life they’re in, and

companies will have to take that

into account when determining

how they operate.”

a recent PwC survey found that

employees increasingly want to be

compensated for their work not just

with money, but with flexibility.

“[We’ve also] found that younger

workers are more likely than older

employees to accept smaller pay

increases for non-monetary

benefits, including extensive

mental health benefits, unlimited

sick time, flexible work hours and

remote work options,” says

Bhushan Sethi, who jointly leads

PwC's global people and

organisation practice. In the wake of

the pandemic, he adds, “these

incentives can be the difference

between a candidate accepting the

job or not”.

The empowered employee

Stories like Marie’s cast a grim

light on the process of readjusting to

a post-pandemic work world, but

there is overarching evidence that

Covid-19 has been a catalyst for good

when it comes to the power that

employees in the labour market can

yield.

Indeed, Klotz argues that we are

actually in the process of witnessing

the dawn of the “era of the

empowered employee”.

In the US, the number of

unemployed people has comfortably

exceeded the number of available

jobs for most of the last two decades,

but currently the two measures are

almost at level pegging, something

that economists describe as

an exceptionally tight labour

market.

“Honestly, I can hardly recall a

time when the job market was so

much in the employee’s favour and

that’s definitely a good thing,” says

Klotz. “Wages have to go up.

Companies have to adapt. But it may

well be a slow period of

experimentation.”

“as an organisation, you don’t

just want to capture people’s bodies,

but you want to capture their hearts

too. and it’s that bit that’s going to

prove tough.”


MINING

Ghana needs to rethink its small

scale mining strategy. Here’s how

GHana is among the top two

gold producers in africa.

What has caught little

attention, however, is the

fact that more than 35

percent of total gold output in Ghana

comes from artisanal and small-scale

miners. artisanal and small-scale mining

is estimated to support the livelihoods of

some 4.5 million Ghanaians, about 12

percent of the population. They account

for more than 60 percent of the country’s

mining sector labour force.

artisanal and small-scale mining is a

low-tech, indigenous and often informal.

It occurs in over 80 mineral-rich

developing countries. Up to 100 million

people globally work in this sector.

artisanal and small-scale mining has

a long history in Ghana. It was only in

1989, however, that government

recognised its legitimacy through the

Small-scale Mining act (PnDCL 218),

later integrated into the current Mining

act 703 (2006). The act provides a

blueprint for its formalisation. It also

reserves small-scale mining for

Ghanaians. The law requires prospective

local miners to apply for a licence to

mine up to 25 acres of land in designated

areas.

Government’s intention to formalise

the sector has had very little

success. More than 85 percent of all

small-scale mining operations in Ghana

are carried out by unlicensed operators.

Due to the sector’s evolving nature,

the distinction between artisanal and

small-scale mining has become

contentious and blurred. To avoid any

complications, most scholars now use

them interchangeably. Some use the level

of sophistication employed to make a

distinction. But in Ghana today one sees

rudimentary tools (traditional

artisanal mining) and modern

tools (small-scale mining) being

used on a single mining site.

Jackboot approach

Government’s response to

illegal mining has been to use

the military to raid small-scale

miners. There is a long history to

such a combative approach in

Ghana. It dates as far back as the

British colonial administration

which enacted the Mercury

ordinance of 1933 to ban and

criminalise native miners.

In 2013, the then president

John Mahama formed the Inter-

Ministerial Taskforce to “flush

out” illegal miners, which led to

many arrests and the expulsion

of illegal Chinese miners. The use

of force intensified under the

current president, nana akufoaddo,

who vowed in 2017 to put

his presidency on the line to fight

illegal mining in Ghana. This culminated

in the setting up of operation Vanguard,

the largest centralised military-police

joint taskforce to combat illegal mining

in Ghana.

The real problem, however, is

government’s failure to implement its

legislative framework for the

formalisation of small-scale miners.

Barriers to formalisation

Government first introduced a

framework for the formalisation of

small-scale miners more than 30 years

ago. But it has very little to show for it.

Less than 15 percent of small-scale

mining operators have been able to

acquire the requisite mining licences.

Many don’t bother to apply due to the

tedious and cumbersome nature of the

regulatory process.

To gain a better understanding of

why the formalisation process has not

achieved much, an aspect of my PhD

research sought to unearth local

perspectives on the underlying

conditions for the creation of these

informal local mines. It examines how

these underpin persistent informality.

There are two problems. The first is

that the current formalisation blueprints

fail to adapt to the conditions of the

majority of local miners. The second is

that the blueprints make it very difficult

or too costly for small-scale miners to

comply. They are therefore a disincentive

to formalise.

only a small segment of small-scale

miners can raise the amount of money

required to become formal operators. The

costs include application fees as well as

the money required for the preparation

and processing of the application. Then

there are costs for environmental

“There are two

problems. The first is

that the current

formalisation

blueprints fail to

adapt to the

conditions of the

majority of local

miners. The second is

that the blueprints

make it very difficult

or too costly for

small-scale miners to

comply. They are

therefore a

disincentive to

formalise.

permits, the hiring of surveyors and for

the acquisition of business documents. a

prospective small-scale mining licensee

could spend at least US$4,000 to secure

the requisite legal status.

When unofficial payments (bribes)

are included, according to small-scale

miners, the costs of getting a licence to

mine 25 acres can balloon to as much as

US$7,000. a burgeoning body

of research has shown that artisanal and

small-scale miners in Ghana are driven

to mining by poverty.

The second challenge revolves around

a centralised bureaucracy and lack of

effective engagement with all

stakeholders. Despite the administration

of small-scale mining being

decentralised into nine mining districts

across the country, only the national

head office can issue a small-scale

mining licence. Key local stakeholders

like municipal and district assemblies

with better understanding of the

complexities play no effective role in the

licensing process.

again, the creation of a centralised

taskforce to address a localised problem

runs parallel to existing local structures.

This undermines effective policing,

monitoring and accountability.

Finding solutions

President akufo-addo’s call for a

dialogue on illegal mining in his January

2021 state of the nation address portends

a potential shift.

To create the enabling policy

environment for a blooming artisanal

and small-scale mining industry that is

environmentally sustainable and

economically beneficial to the state and

citizens, greater engagement with local

actors is the path to chart.

The solution is the devolution of

small-scale mining decisions to

municipal and district assemblies

working in collaboration with traditional

authorities.

This will facilitate greater

recognition and inclusion of local actors

in the licensing process. It will also open

dialogue with local miners since

municipal and district assemblies are the

local development agents. This will bring

decision making processes closer to

small-scale miners and

enhance the effective

policing and monitoring of

the sector.

The reform of the licence

regime for small-scale

mining should be driven by

the need to match the costs

of formalisation with the

complex socio-economic

dynamics of the majority of

operators. This is attainable

when policy treats smallscale

mining as a survivalist

sector rather than a platform

for wealth creation. artisanal

and small-scale mining has

also suffered because of its

portrayal by the media and

public misrepresentation as

a vehicle for “quick money”.

This article is

republished from The

Conversation under a

Creative Commons license.

TECHNOLOGY

Thursday, June 16, 2022 PAGE 11

Why broken African phones

are shipped to Europe

ERIC arthur does not have much

time for hobbies - he spends most

weekends driving all over Ghana

collecting broken mobile phones.

From his home in Cape Coast he can rove

more than 100 miles (160km) in one weekend

visiting repair shops and scraps yards - anywhere

that has a decent supply of broken devices.

In a good weekend he can collect 400 of

them. on top of that, he manages a team of six

agents doing the same thing in other parts of

the country, and between them they expect to

collect around 30,000 phones this year.

Mr arthur and his agents pay a small

amount to sellers for each phone, 2.5-2.7

Ghanaian cedis, or around 44 US cents (33p).

Even though the phones are beyond repair,

sometimes it can take some persuading to get

people to part with them.

"a [new] android phone goes for like $150

and I offer them less than $1 for it. Even

though it is no longer usable, they're like: 'But I

bought it at this price. So why should I give it

as cheap as that?'"

His weekend work is paid for by a Dutch

company called Closing the Loop. The company

ships the phones collected by Eric and his

team over to Europe, where they are broken

down and recycled. Then a specialist smelting

firm retrieves around 90% of the metals in the

phone - a process which incinerates the plastic

parts.

But why ship phones thousands of miles

from West africa?

Joost de Kluijver, who co-founded Closing

the Loop with Reinhardt Smit, says the answer

is simple. africa does not yet have the sophisticated

smelting plants needed to retrieve the

small quantities of highly valuable metals that

go into making a mobile phone.

"Everything you need to have in a plant

that is financially sustainable, is missing," he

says. "There's no legislation, infrastructure and

no consumer awareness. as a result, you don't

have any money to fund proper collection and

recycling."

Meanwhile around 230 million phones are

sold in africa every year. When they are no

longer needed, some are picked up by the informal

recycling industry, but most are thrown

away.

according to the Global E-waste Monitor,

africa generated 2.9 million tonnes of electronic

waste in 2019, of which only 1% was effectively

collected and recycled.

"african countries are experts in life-cycle

extension, in repair and also to some extent in

recycling. So the mindset is already there but

the proper tooling is missing, especially for this

type of waste," says Mr de Kluijver.

To pay for the collection of phones in

africa, Closing the Loop strikes deals with companies

and organisations which pay Closing

the Loop around €5 ($5.60; £4.20) per new

phone that they buy or lease from whoever

provides their technology.

For every new workplace device, Closing

the Loop recycles an equivalent amount of

electronic waste in countries that lack formal

recycling capacity.

The €5 per phone covers the collection,

shipping and recycling of a phone in africa,

plus some profit for Closing the Loop.

The growing list of customers includes the

Dutch government and financial services firm,

KPMG. For the clients it is a relatively small investment

but it has a significant environmental

benefit.

Closing the Loop expects to collect 300,000

phones this year

Mr de Kluijver is critical of some recent efforts

to set up waste recycling schemes in

africa. He argues that without a sustainable financial

model and enforced legislation in place

they will struggle to get off the ground.

Simone andersson is well aware of those

challenges. She is the chief commercial officer

of Waste Electrical and Electronic Equipment

Centre (WEEE) which recycles these goods in

Kenya.

Kenya does not have a national government-run

recycling system, just a waste collection

service in some areas. The idea for WEEE

Centre sprang from Computers For Schools

Kenya, a non-profit organisation which supplies

schools with refurbished computers.

Its work with schools showed that there

was a need to deal with unwanted electronic

waste and in 2012 the recycling firm was

launched.

This year, WEEE Centre expects to collect

250 tonnes of electronic waste, mostly through

deals with big firms like Total Energies and

absa.

But this is only a small fraction of the estimated

50,000 tonnes of e-waste that Kenya

generates every year. Ms andersson has ambitious

plans to set up collection points all over

the country where people will be able to leave

their unwanted electronics.

She says that Kenyans are becoming more

aware of the environmental problems caused

by e-waste and would like to do something

about it.

"Most people are very aware of the general

waste problems. Many would like to change

their ways, if there was only some infrastructure,

supporting it - we want to be part of solving

that when it comes to e-waste," she says.

The Kenyan government is taking some

steps to help: there is a plan underway to introduce

Extended Producer Responsibility legislation

(EPR), which will assign the financial

burden of recycling products back to the producers

or importers of electronic goods.

"We are pushing for it because we see it's

needed in this country," says Ms andersson.

"and we also want Kenya to be a good role

model for the rest in africa.

"Having the EPR is going to help if we get

the laws in place. Maybe not immediately, but

for sure it puts a totally different mindset and

will have a great effect on targets and structures."

WEEE Centre's technicians dismantling

electronic devices - iron and copper can be recovered

in Kenya, but precious metals have to

be dealt with out of africa

WEEE Centre's workshop team of 10 technicians

carefully sorts and dismantles electronic

devices. Some metals - iron and copper -

can be recovered locally, but precious metals

like gold, platinum and palladium that are

embedded in the circuit boards can only be retrieved

by specialist smelting firms in Europe

or asia.

one day Ms andersson would like to build

a smelting plant in Kenya: "as we expand, we

definitely want to bring that technology to

africa. Why not eastern africa? Why not

Kenya and nairobi? That is one part of our vision."

Mr de Kluijver also hopes that Closing the

Loop will be able to finance recycling plants

and smelters in africa, but until then, the

next best option is to ship phones to Europe.

Back in Cape Coast in Ghana, Eric arthur

has seen improvements in the handling of

electronic waste in recent years, but thinks

more needs to be done.

"With more education, I believe that people

will come to understand the need for one

to dispose of electronic waste," he says.


BACK

PAGE

Bawumia inaugurates GCB

Bank's first North East

Region branch in Nalerigu

THE Vice President, Dr. Mahamudu

Bawumia, has opened the first

north East Region branch of the

Ghana Commercial Bank (GCB-

Bank) in nalerigu, the capital of

the newly-created north East Region.

The opening of the bank, marked an historic

moment in nalerigu, as the fast-developing

northern town also got its first-ever

bank.

The branch is also GCB Bank's 185th

branch in the country.

Speaking at the commissioning of the

bank in nalerigu on Tuesday, June 14, Vice

President Bawumia said the historic opening

of the GCB Bank in nalerigu is one of the direct

benefits of creating the new region by

the government of President akufo-addo.

Dr. Bawumia, who expressed delight at

the opening of the bank, said one of the governance

vehicles the akufo-addo government

has deployed to ensure inclusive development

for all, regardless of location is decentralization,

adding that the creation of six

new regions is accelerating and expanding

development to communities, such as the

historic opening of a bank in nalerigu.

"This singular initiative to create six new

administrative regions, including the north

East region, has not only expanded development

but also created a new sense of nationalism

and inclusivity," Dr. Bawumia said.

"In the north East region, for example, we

have seen how the creation of the new regions

has brought a renewed focus, and many

developmental projects are being executed in

the region.'

"The establishment of the first branch of

the Ghana Commercial Bank in the north

East Region is one of such developments that

decentralization brings," he stressed.

Dr. Bawumia noted that a well-functioning

financial system, like the GCB, is fundamental

to a modern economy, noting that the

opening of the bank in nalerigu will boost

economic activities, as it will offer financial

solutions to petty traders and farmers within

nalerigu and surrounding communities.

"They (banks) allocate funds from savers

to borrowers to maintain the pulse of our

economy. If banks fail to perform, the economic

consequences are far-reaching and severe.

When they succeed, the opportunities

are endless."

"From today, the petty trader and smallholder

farmer in nalerigu and its catchment

communities will have access to a range of financial

solutions because GCB is here."

The Vice President commended GCB for

their decision to establish a branch in nalerigu,

and he also urged them to consider

opening branches in districts without banks

in the country.

on behalf of the President and the Government,

Dr. Bawumia also congratulated the

Board, Management and Staff of GCB Bank on

the bank's 69th anniversary.

Ghana 7th best

African country

• For Entrepreneurs

in 2022

a new report compiled by

the CEoWoRLD magazine

has placed Ghana 7th best

african country out of 10

to become an entrepreneur.

The Entrepreneurship

Index evaluates a total of

100 economies based on a

wide range of factors to

create an overall “best

countries for entrepreneurship”

index, including

innovation, competitiveness,

infrastructure, labour

skills, access to capital, and

openness for business.

according to the report,

South africa tops the

local ranking for the best

african countries to be an

entrepreneur. With a

highly-skilled workforce,

competitiveness and openness

for business, the

country has the secondlargest

economy in africa,

after nigeria, and is also

unarguably the most industrialised

nation in sub-

Saharan africa.

South africa placed

48th out of the 100 countries

accessed globally

with Ghana placing 77th.

Here are the top 10

most entrepreneurial

countries in africa according

to CEoWoRLD magazine

Entrepreneurship

Index, 2021.

South africa

Rwanda

Morocco

Kenya

nigeria

Tunisia

Ghana

Botswana

Cameroon

Egypt

Fuel prices to go up

by over GH¢1 per litre

IT is obvious the woes of

fuel consumers are not

yet over. This is because

the price of the commodity

is expected to

increase by about 12 per

cent in the next pricing

window of June 2022.

This would mean

that the average price of

fuel is likely to increase

by about GH¢1.33 per

litre.

While petrol prices

are projected to go up by

GH¢1.24/litre which is

an 11.41% increase, the

price of diesel may increase

by GH¢1.43/litre

depicting a 12.93% increase.

The latest press release

by the Chamber of

Petroleum Consumers

Ghana (CoPEC), explained

what is accounting

for the

anticipated price hikes.

“Current Crude

prices are at $124.96/barrel,

resulting in

processed Petroleum

Products of $1,451.25/MT

of petrol and

$1,289.97/MT for diesel,

• COPEC hints

coupled with further depreciation

of the exchange

rate of

$1:GH¢8.0483 and the

government’s applicable

tax rebate of 15 pesewas

per litre still in place till

the end of June 2022”.

The average price of

petrol and diesel at the

pumps currently stands

at GH¢12.282 after selling

at about GH¢6.5

in January.

This was after

petrol and diesel

crossed the GH¢10

and GH¢12 per litre

marks this month.

already, there

are hints of another

likely increment in

transport fares

after an earlier increment

by 20 percent.

What could be

the way forward

with the situation

as there is no end

in sight with global

oil prices continuing

to soar?

Head of Research at

CoPEC, Benjamin nsiah,

recommended that

“Tema oil Refinery

must be retooled, recapitalised

and equipped

with efficient managers

to make the entity start

operations and be profitable.

We also must diversify

our imports

within the short and

medium term. This

means we need to begin

to explore other countries,

refineries and

traders that will give us

cheaper products compared

to what we are

getting now from the

European and arab

areas”.

“The Ministry of

Trade, finance and the

Bank of Ghana need to

implement a coordinated

plan to help the

cedi appreciate against

the dollar. When these

three measures are put

together within the

shortest possible time,

we believe the price of

fuel will reduce

soon,” he added.

Even though

petrol and diesel are

expected to go up,

the narrative might

be different for LPG

as it’s expected to

experience a marginal

decrease in

price, the statement

added.

“LPG is also

likely to sell around

GH¢10.024/kg showing

a reduction of

about 27 P/kg (-

2.66%) over the previous

window.”

Business Analyst - June 16

Create successful ePaper yourself

Delete template?

Save as template?