Business Analyst - August 16

BUSINESS MARKET RATES
US$ 1 – GH¢9.02
GHANA STOCK MON. 16 AUGUST. 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
Tuesday, August 16, 2022. Vol. No. 181
GH¢2.50
• Ken
Ofori
Attah
BankS in Ghana
recorded a profit of
GH¢2.9 billion in the
first half of 2022, the
Banking Sector
Development Report of the Bank
of Ghana has revealed.
This represents an increase of
19.8% over profit recorded for the
same period a year ago
(comparative growth rate of
24.0%) and comes despite the
challenges facing the economy.
Profit-before-tax also grew by
21.6% to GH¢4.4 billion in June
2022, compared to a growth of
32.1% in June 2021.
according to the report, net
interest income growth
moderated from 19.4% to 12.4%

Tuesday, August 16, 2022
Kenya election result: William
Ruto wins presidential poll
Deputy President William Ruto has
been declared the winner of kenya's
presidential election amid dramatic
scenes.
He narrowly beat his rival, Raila
Odinga, taking 50.5% of the vote,
according to the official results.
The announcement was delayed amid
scuffles and allegations of vote-rigging by
Mr Odinga's campaign.
Four of the seven members of the
electoral commission refused to endorse
the result, saying it was "opaque".
"We cannot take ownership of the
result that is going to be announced
because of the opaque nature of this last
phase of the general election," said
Juliana Cherera, the vice-chairperson of
Independent Electoral and Boundaries
Commission (IEBC).
"We are going to give a
comprehensive statement... and again we
urge kenyans to keep calm," she added.
Mr Odinga's party agent earlier
alleged that there were "irregularities"
and "mismanagement" in the election.
This was the first time Mr Ruto, 55,
had run for president. He has served as
deputy president for 10 years, but fell out
with President Uhuru kenyatta, who
backed Mr Odinga to succeed him.
The 77-year-old former prime
minister, who got 48.8% of the vote, was
running for president for the fifth time.
Mr Ruto (r) called Mr Chebukati, the
head of the electoral commission, a
"hero"
Electoral commission chairman
Wafula Chebukati said he had done his
duty despite receiving threats.
"We have walked the journey of
ensuring that kenyans get a free, fair and
credible election. It has not been an easy
journey - right now two of my
commissioners and the CEO are injured,"
he said.
In his speech, President-elect Ruto
thanked the electoral commission for
overseeing the election.
"It is a wonderful evening… all
sovereign power belongs to the people of
kenya," Mr Ruto said, calling Mr
Chebukati a "hero" and dismissing the
other commissioners' dissent of his win
as "a side show".
Mr Ruto said he wanted to be a
president of all, and for the country to
focus on the future.
"To those who have done many
things against us, I want to tell them
there's nothing to fear. There will be no
vengeance. We do not have the luxury to
look back," he added.
Celebrations have broken out in
several parts of the country, including in
Mr Ruto's strongholds of the Rift Valley,
and that of his deputy Rigathi Gachagua,
in the Central region.
Supporters of Mr Odinga have staged
protests in the western city of kisumu
and some parts of nairobi.
But generally there's a sense of relief
that the result has finally been declared
because the country had ground into a
halt since election day on 9 august,
economic activities had stalled and
schools remain closed.
kenya's history of disputed elections
in the past have led to violence or the
whole process election being cancelled.
Following the 2007 vote, at least 1,200
people were killed and 600,000 fled their
homes following claims of a stolen
election.
Hustler vs dynasty
In a country fond of political
metaphors, Mr Ruto's stunning victory is
akin to his party's modest symbol, the
wheelbarrow, running a seven-tonne
tractor off the road. Mr Odinga had the
backing of the state machinery. Several
opinion polls, which Mr Ruto had
dismissed as fake, predicted his rival
would win.
as the deputy president for the last 10
years he was, by default, an establishment
candidate but he ran as an outsider,
framing the election as between
"hustlers" - poor kenyans - and
"dynasties" - influential families like the
kenyattas and Odingas who have been
big players in the country's politics since
independence.
"I may be the son of a nobody but I
promise to make kenya the country of
everybody," he said in his pitch to voters.
His political stock rose when he
opposed an unpopular and costly yearlong
push by Mr kenyatta and Mr Odinga
to change the constitution at a time
many kenyans were suffering, including
losing jobs, following the protracted
impact of the Covid-19 pandemic.
The Supreme Court eventually ruled
the move unconstitutional, buoying Mr
Ruto's campaign.
He also framed the election as a time
for generational change, selling his
message using pithy and relatable
slogans, which lent him credibility and
appeal across several communities.
Mr Ruto's win is rightly the focus of
kenya's 2022 election, but equal attention
should be given to the electoral
commission which came into this poll
with a terrible track record, but its
decision to post results from the more
than 46,000 polling stations on its
website - accessible to anyone who
wanted to do their own tally - allowed the
media and the public to be part of the
process.
The leaders of Zimbabwe, Ethiopia
and Somalia have congratulated Mr Ruto.
analysts believe that Mr Odinga is
likely to challenge the result.
The kenyan Supreme Court annulled
the last election - it might have to make
another big decision in a few weeks.

Tuesday, August 16, 2022
Banks bag GH¢2.9bn profit
• Continued from front
during the review period. The slowdown
in net interest income growth was on
account of a decline in the growth in
interest income from 17.6% to 15.4% and
an increase in growth in interest
expenses from 13.9% to 21.9% during
the same comparative period.
Interest income growth slowed as a
result of the reduction in investment
income this year, while the higher
growth in interest expenses was mainly
on account of increased borrowings this
year.
net fees and commissions, on the
other hand, recorded a stronger growth
of 29.2%, from 19.6%, whereas other
income, the smallest component of
banks’ income, increased by 98.0% from
a contraction of 11.8 %. These made up
for the decline in net interest income
growth. T
These developments resulted in the
• In first half of 2022 despite
cedi depreciation, inflation
industry’s gross income growth of 22.7%
during the first half of this year,
compared with 15.2% in the
comparative period in 2021.
The report also said growth
outturns in cost lines of banks were
higher in June 2022, compared with the
same period last year, contributing to
the relative decline in profit
performance during the period. Growth
in operating expenses was higher at
22.9% in June 2022, compared to a
growth of 7.3% in June 2021, due to
sharp increases in the growth of both
staff costs and other operating
expenses.
Growth in provisions also increased
by 28.4%, from a contraction of 0.3% a
year earlier, partly attributable to the
increase in the non-Performing Loans
stock within the review period.
Return on assets and Return on
Equity
The sector’s Return on Equity (ROE)
improved to 21.9%, from 21.2% during
the review period.
However, Return on assets (ROa)
declined marginally to 4.6% in June
2022 from 4.7% in June 2021, reflecting
the moderation in profit before tax
growth during the reference period.
Composition of Banks’ Income
Income from investments remained
the largest component of banks’ income
streams in June 2022, although its share
moderated to 45.1%, from 51.0% a year
ago following the slowdown in the
growth in investments.
The share of interest income from
loans, however, increased from 30.0% to
31.1 percent, in line with developments
in credit growth during the review
period.
The relative shares of banks’ income
from fees and commissions and other
income sources also increased between
June 2021 and June 2022, reflecting
increases in growth in these respective
income lines during the reference
period.
Cedi depreciation
Enforce laws on pricing
in dollars — Govt urged
THE Executive Director of Danquah Institute,
Dr. antoinette Tsiboe Darko, has
charged the appropriate authorities to act
with a sense of urgency by adopting
measures to reduce the dollarisation in
the economy.
She explained that the pricing of
goods and services in dollars was a structural
defect, stressing that the development
continues to worsen the economic
challenges confronting the country.
Juxtaposing Ghana’s situation with
her neigbhours, she contended that the
CFa appreciated better than the Cedi.
Dr. Darko, who was speaking on the
Big Issues on Citi TV last Saturday, noted
“We have structural issues which speak
to the issues we are currently facing. We
have a dollarised economy. It is something
that has historically gone with us
and we keep going along with it. When
you go into a Francophone country, it is
the CFa that comes to the fore when you
want to buy something but how come
that in Ghana it is the dollar that is mentioned
first? This is something that we
have to fight to make sure that the dollar
economy is minimized so that we can
have confidence in our cedi.”
Continuing, she underscored that
human development was crucial in ensuring
that Ghana achieved a certain
growth rate.
“Unfortunately what free SHS and
TVET have done are things we won’t identify
the profit immediately. We will see
the benefits and positive results probably
in the next ten or fifteen years. This is
when we see a whole generation going
into entrepreneurial and technical production
and be able to contribute to the
growth of the economy.”
But she did not underestimate the
shocks the economy had suffered after
being hit by the COVID-19 pandemic and
the impasse between Russia and Ukraine.
She intoned that the global trade market
has become very competitive as a result
of the unrest between the two
European countries.
“Due to the payments plans, if we
don’t up our plans our suppliers will give
their supply to any country that has
funds to pay,” she indicated.
On the subject of revenue mobilisation,
she suggested that the country has
to place prominence on internal revenue
generation. This she tied up to the electronic
levy (e-levy).
“The issues about internal revenue I
think have been neglected for long and it
actually demands that we take intentional
measures to get ourselves out of
this, and the impasse on this topic in parliament
has also not helped the situation,”
she said.
Utility tariffs increased
• Electricity up by 27.15%, water, 21.55%
THE Public Utilities Regulatory Commission
(PURC) after a stakeholder’s consultation
has increased the electricity tariff by
27.15% and that of water by 21.55% effective
1st September 2022.
It will be recalled that some Companies
including the Volta River authority
(VRa), Ghana national Gas Company
(GnGC), Ghana Grid Company Limited
(GRIDCo), Electricity Company of Ghana
(ECG), northern Electricity Distribution
Company (nEDCo), Enclave Power Company
(EPC) and Ghana Water Company
Limited (GWCL) sent a proposal to the
PURC requesting for an increment in tariff.
The Commission also received proposals
from the Ghana national Petroleum
Corporation (GnPC) in respect of projected
natural gas volumes and tariffs by gas supply
sources.
The companies requested very astronomical
increases with GWCL demanding
over 300% increase in end-user tariffs.
ECG and nEDCo proposed
148% and 113% increases
respectively, VRa
and GRIDCo proposed 37%
and 48% increments respectively.
after receiving these
proposals, the Commission
carried out a rigorous regulatory
audit of the
processes and assets of
Utility Service Providers,
enabling it to adjust the
Weighted average Cost of
Gas (WaCOG) for power
generation and end-user
tariffs for electricity and water.
In balancing the interests of service
providers and consumers, the PURC acknowledged
that the very economic variables
that have occasioned the steep
increases proposed by the service providers
also affect consumers.
The Commission admitted, however,
that some level of increases in utility tariffs
were inevitable if the nation was to
avoid another dumsor and its attendant effects
including job losses.
In a statement, PURC said, “The Commission,
therefore, decided to increase the
average end-user tariff for electricity by
27.15% and water by 21.55% effective 1st
September 2022.”
It explained that “These rates, in view
of the Commission, are sensitive and responsive
to the positions of all stakeholders
in the utility space in line with sections
3(c) of PURC act 1997 (act 538).”

Tuesday, August 16, 2022
BOOST LOCAL CAPACITIES TO
ACHIEVE AFCFTA POTENTIAL
The African Continental Free Trade Area
(AfCFTA) agreement is seen by many as an
excellent strategy to develop Africa’s
economy through its manufacturing sector,
after many years of discussions about
creating a common market.
The AfCFTA will boost the continent’s
manufacturing sector by facilitating access
to new markets for small and medium
enterprises (SMes), increasing economies of
scale and facilitating export diversification.
It is also expected to boost intra-African
trade, promote industrialisation, create jobs
and improve the competitiveness of African
industries on the global stage.
That is why a vibrant manufacturing
sector is crucial to transforming economies
on the continent in order to achieve
sustained growth, create more jobs and
achieve prosperity for all.
African nations currently trade more
internationally than with one another.
Intra-African trade accounted for 17 per
cent of African exports, which is low,
compared to 59 per cent for Asia and 68 per
cent for europe, according to the World
economic Forum.
But AfCFTA wants to do more than just
boost trade in goods — its scope includes
services, investment, intellectual property
rights and competition policy, although
some of these aspects are still under
negotiation.
Since Africa officially started trading
under AfCFTA in January 2021, the practical
impact of the agreement has been minimal,
while disruptions of global supply chains
due to COVID-19 restrictions in 2020 have
limited AfCFTA's potential.
The insignificant share of Africa in global
trade and the relatively low level of intra-
African trade can be attributed, to a large
extent, to the inadequacy of productive
capacity, especially in the dynamic sectors
of global trade.
For us, one of the challenges that can
hinder the realisation of a common market
for the continent is the lack of capacity to
add value to the continent’s raw materials.
In short, we simply export our products
in raw form, thereby thwarting the growth
of a common market.
This is because if other countries on the
continent cannot access finished goods of
African produce to import, they will be
compelled to buy them from outside the
continent.
The global chocolate industry is worth
over $150 billion. While West Africa supplies
70 per cent of the cocoa beans, most of the
value in a chocolate bar is generated in
europe and North America.
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’.

Tuesday, August 16, 2022
Private sector role key For Ghana
to attain renewable energy goal
THE private sector’s
role in helping the
country to achieve
its renewable energy
target by 2030
cannot be overemphasised.
according to the Deputy Director
for Renewable Energy at
the Ministry of Energy, Ing
Seth Mahu, private businesses
in the country must take advantage
of various grants to enable
them to contribute their
quota toward the attainment of
the government’s renewable
energy goal.
“The numbers are not too
assuring for africa. If you look
at the continent, and its geographical
position, we are
home to about 60% of the best
global solar resource and we
should be seen to be doing a lot
of the renewables, particularly
solar for power generation.”
Currently, he said, africa’s
total contribution to the global
installed renewable energy
with a focus on solar was just
about 1.3%.
He said this translates into
about 8.7 gigawatts of installed
capacity, adding that “this is
very small” and that “we need
to increase this contribution;
the government alone would
not be able to do it.”
Ing Mahu was speaking to
the media on the sidelines of
the Umoja Incubator Roadshow
on renewable energy held
in accra.
The 2022 Umoja Incubator
was a collaboration between
Serengeti Energy and Private
Financing advisory network
(PFan).
It was aimed at supporting
aspiring entrepreneurs in renewable
energy to bring their
projects to a financial close.
This is achieved by improving
the bankability of the most
promising renewable energy
projects through access to commercial
and technical knowledge,
and finally securing the
funding.
The application period is
open until September 4, 2022,
after which a jury consisting of
top-tier industry partners will
evaluate the projects.
The best candidates for the
programme will be invited to a
one-week workshop in Cape
Town, in which the winner of
the first Umoja Incubator will
be announced.
Commenting on the intervention,
Engineer Mahu stated
that “The role of the private
sector is critical to be able to do
this. That is why we must support
this programme and get a
lot of the private sector players
on board so that they can be
helped. They can be assisted to
turn their ideas into profitable
ones and be able to contribute
significantly to the development
of the continent’s renewable
energy program.
Government has over the
years, been unable to attain its
renewable energy target, revising
it from 2020 to 2030 due to
the failure to implement policies
toward achieving the goal.
Presently, renewable energy
was just one percent of the
country’s renewable energy
mix.
‘Invest more resources into agric’
a clarion call has been made
to the akufo-addo administration
to invest more resources
into the agriculture sector by exploring
the by-products of natural
gas in the manufacture of
fertilisers.
a Value Chain Development
Specialist and Director of Policy
and Research Bureau, Chamber
of agribusiness Ghana, kojo ahiakpa,
who made the call proposed
that as part of preventing
the looming possibility of price
hikes in fertilisers in the ensuing
year as a result of the ongoing
war between Russia and
Ukraine, the government
through the Ministry of Food
and agriculture must be responsive
and tap into the natural elements
that exist in the
environment.
“We would like to re-emphasize
the need for government to
pay attention to the input sector
in agribusiness, more importantly,
with the fallout of the
Russia-Ukraine war which has
given an indicator of a shortfall
in fertilisers,’ he reiterated.
“There is a need for us as a
country to cushion the farmers
in terms of the fertilizer production
so that we do not run out of
production when farmers are
limited in their access,” he continued.
Mr. ahiakpa was speaking on
Citi FM in accra yesterday
which was monitored by Business
analyst.
according to him, the probability
of prices of fertilisers scaling
up was high if measures
were not set in place to curb it.
“What this means is that we
should expect a hike in the
prices of fertilisers from 2023
and 2024.”
But, he urged the local industry
could take advantage of the
situation.
“Thankfully, we have a lot of
local assemblies that are into organic
fertilizer production
notwithstanding. Ghana is into
the drilling of oil and for example,
the waste from gas could be
leveraged to reduce the shortfall
of fertiliser.”
Furthermore, he suggested
that ‘for the farm machinery
government has received from
Brazil to be put to good use,
there is a need for local hands to
be trained to man and service
the equipment. In the longterm,
government should be
able to resource one of the IDIF
projects to assembly some of
these machinery locally.’
““We would like to re-emphasize
the need for government to pay
attention to the input sector in
agribusiness, more importantly,
with the fallout of the Russia-
Ukraine war which has given
an indicator of a shortfall in
fertilisers,’ he reiterated.
Vodafone Ghana
expands 4G LTE sites
and upgrades network
Vodafone Ghana is rolling out 300 4G LTE sites
and 3G sites in several communities across the sixteen
regions of Ghana by the end of October 2022.
This represents a 30% increase in the current
network capacity. The move is in line with the
company’s commitment to creating an inclusive
digital society in the country as part of its purposeled
agenda.
Vodafone Ghana has completed more than fifty
percent of this significant network improvement,
which is already promoting equitable digital
growth and enhancing online activities in various
communities.
additionally, Vodafone Ghana is increasing the
capacity of its existing mobile sites to meet the
growing demand for data usage and services. These
will also improve coverage, network stability and
provide a great connectivity experience for customers.
Commenting on the project, the Chief Executive
Officer (CEO) of Vodafone Ghana, Patricia Obo-nai,
said: "Indeed, increased access to the internet is inextricably
linked to the growth and the socio-economic
wellbeing of the nation. This is why we
continue to invest in our network to ensure that we
provide best-in-class coverage and customer service
for Ghanaians in every corner of this country, leaving
no one behind. We believe that by granting access
to every Ghanaian, they can take advantage of
digital advancement and its limitless possibilities.’’
Over the period, Vodafone has invested in its
network to provide greater reliability and seamless
data and voice services for its customers and businesses
nationwide. These include an extensive fibre
infrastructure rollout to provide seamless ultrahigh-speed
fiber-to-the-home (FTTH) connectivity
for its customers at home and work.

Tuesday, August 16, 2022
60 Business ideas & Investment
Opportunities in Ghana
Part one
By Ajaero Tony Martins
Do you want to start a business
in Ghana but you lack ideas? If
Yes, here is the first part of a
two part series listing 60 small
business ideas and investment
opportunities in Ghana.
With a strong
mineral resources
sector, cocoa
industry, consistent
government policy,
recent oil discoveries, steady power
supply, friendly business environment
and a free trade zone for foreign
companies; Ghana is definitely a
country to beat in the future. So, if you
are looking for a business opportunity to
start in Ghana, here are 50 best business
opportunities you can choose from.
50 Best Business ideas
and Investment
Opportunities in Ghana
(1). Car Dealership Business
One thriving business that an
aspiring entrepreneur or investor can
start in Ghana is car dealership.
Operators in the car dealership industry
sell and buy both brand new and used
cars and they may fall in any of the
following niche area; brick and mortar
car dealership, online used cars
dealership, locally produced car
dealership, imported car dealership,
luxury car dealership business and
multi – brand and multi – maker car
dealership.
The automotive industry in Ghana with
reference to used cars dealership is indeed
flourishing because more and more consumers
are becoming aware of the need to cut
unnecessary spending as it relates to
purchasing cars.
2. Open a Bar and Grill Business
Opening a bar and grill business can be
fascinating at the same time worthwhile
especially if you position your bar and grill
business in strategic locations where you can
easily attract socialites and people who love
night life.
The fact that in Ghana people will always
hangout in bars makes it one of those
businesses that is in high demand and it is also
profitable. Bar and grill business is one of the
businesses that an entrepreneur can
successfully start in the corner of a busy street
without breaking the bank for cash.
3. Open a Beauty
Supply/Cosmetics Store
There are avalanches of beauty products
that are seen on the shelves in stores all around
Ghana. These products have various uses and
they meet the requirements of folks in different
ways. It is important to point out that beauty
supply business is one the businesses that can’t
go out of fashion simply because of the role it
plays in the society.
Depending on the scale you want to start,
the startup capital for this type of business can
be considered to be moderate.
4. Start a Boarding School
If you live in Ghana you will quite agree
that it is indeed brisk business running a
boarding school. Parents who are pretty busy
would always take their children to boarding
schools where they can learn and live
throughout the school session.
However setting up a boarding school
requires hard work and serious planning. You
are expected to apply and obtain permits and
licenses to run such facility from the
government, and your facility must meet the
required health and safety standards before you
can be allowed to operate.
5. Start the Production
of Bottled Water
another thriving business that an aspiring
entrepreneur can start in Ghana is the
production of bottled water. Production
companies in the bottled water industry
basically purify and bottle water into plastic
and glass bottles for consumption.
The bottled waters are properly capped and
labeled before being sold to the general public.
needless to say, there are readily
available markets for bottled water in
Ghana because every human on the face of
the earth need to drink clean water to survive.
The bottom line is that economic recession
hardly affects the rate of consumption of
bottled water.
6. Start a Bridal Makeup Business
This type of business is not capital
intensive and you can start the business from
your savings. If you are hardworking and you
have the right network in place, you can
generate your start-up capital from one
business deal.
One good thing about the bridal makeup
business is that most often than not, weddings
are held during weekends and if you are lucky
not to be working during weekends, you can
successfully test run a bridal makeup business.
as a matter of fact, you can combine your bridal
makeup business with any other business
without over working yourself.
7. Open a Bureau De Change Shop
as a Ghanaian or someone who lives in
Ghana, if you want to engage in international
trade cum business, you need to obtain the
required currency. This goes to show that
bureau de change business in Ghana is a viable
business that an aspiring entrepreneur who
looking towards starting a business can
successfully start.
8. Start a Call Center Business
Call center business is one of many
businesses that in recent time is not location
bound; a call center can be located in Ghana or
nigeria and work for clients in the United
kingdom or the United States of america. This
is as a result of outsourcing services such as
telemarketing and customers care services.
9. Open a Car accessories Store
although you don’t need a college degree to
establish your own car accessories and auto
spare parts store, you need some form of
informal training. You might have to work as
an apprentice with someone who owns a car
accessories and auto spare parts store.
It makes it easier for you to learn the ropes
and how to manage your own business. It is
important to point out that car accessories and
auto spare parts store business is one the
businesses that can’t go out of fashion simply
because of the role it plays in the auto industry.
10. Start a Cattle Farming
Business
Cattle farming is perhaps one of the most
lucrative animal farming businesses an
entrepreneur can start, but that does not rule
out the fact that it can sometimes be
challenging especially if you don’t live around a
farm community where you can easily build
your cattle ranch. Cattle rearing is of course a
thriving and profitable business because of the
usefulness of beef and other by products from
cattle.
11. Start a Commercial Cleaning
Company
any entrepreneur who desires to start a
business in Ghana can successfully start a
commercial cleaning business and generate
good returns from the business with a short
period of time.
This is because the commercial cleaning
industry is a thriving industry in Ghana. This
type of business can be started by anybody as
long as you have eyes for details and
cleanliness. If you have experience in this
regard, it will be easier for you to start and
effectively run a cleaning business.
12. Start Coffee Exporting
Business
.If you are considering starting a coffee
export business in Ghana, the good news is that
you can’t get it wrong because the Ghanaian
government is supporting the export of cash
crops from Ghana to other countries of the
• Ajaero Tony Martins
Founder / Publisher at Profitable
Venture Magazine Ltd
world, plus the fact that coffee is consumed by
people all across the world and there are several
outlets that are willing to purchase coffee from
you if you have good coffee.
13. Open a Consignment Shop
a Consignment Shop is a shop where fairly
used goods are sold. It could be clothes, shoes
and other fashion accessories, sport wares,
automobiles, electronics, furniture, toys, books,
tools, musical instrument, office equipment,
machines, etc.
You can start this business without money
“One good thing
about the bridal
makeup business is
that most often than
not, weddings are
held during
weekends and if you
are lucky not to be
working during
weekends, you can
successfully test run
a bridal makeup
business.

Tuesday, August 16, 2022
because you would only be required to
collect goods from people who are cleaning
and clearing their wardrobes, houses, offices
or garages at no cost at all. In other words,
you would be automatically helping them
get rid of the items they do not want and in
turn make your profit.
15. Start a Construction
Company
Starting a construction business is
capital intensive simply because of the type
of heavy-duty equipment that are required
to carry out a construction project and also
the cost of managing a large workforce.
Despite the fact that the construction
industry requires huge startup capital, the
industry is highly profitable especially if you
have the expertise and capacity to deliver
good quality the jobs.
16. Start a Cyber Security
Company
In Ghana, cyber crime is on the increase
hence starting a cyber security business is
therefore a lucrative business to go into
because individuals, businesses and the
government need their data protected.
However, to start this kind of business,
you will need to have the technical skills
that will be needed to secure data or stop an
ongoing attack for your client. However, due
to the technical nature of this business and
the need to understand what you will be
getting into from the business aspect, it
would be wise to consult with a business
consultant in the area where you intend
starting the business.
17. Open a Fabric Store
Entrepreneurs who intend starting a
fabric store business can as a matter of fact
start from their car or garage.
The bottom line is that there is always a
ready market for fabrics. all a fabric retail
store needs to do is to ensure that they have
quality fabrics both locally and from
different parts of the world, and also ensure
that their fabric store is well positioned.
18. Open a Fast Food Restaurant
If you are interested in the food
industry, one of the coolest ways of making
money is to open a fast food restaurant in
Ghana.
It is important to state that loads of fast
food restaurants close shop because they
failed to conduct detailed market survey and
feasibility studies before opening. Your
ability to re – strategized and always up your
service delivery will help you stay
competitive.
19. Start a Feed Mill Business
Poultry mills is a production facility
where different poultry mashes are
produced like layers mash, pre-layers mash,
growers mash, broilers starter and finisher
et al.
This a business that is open to an
aspiring entrepreneur especially those that
live around farm communities. all you need
to get started is a well – positioned and
government approved facility, steady supply
of grains and of course, the in and out of
running the business. It is important to
point out that poultry feed mill business is
one the businesses that can’t go out of
fashion simply because of the role it plays in
the poultry industry.
20. Start a Fish Farming
Business
Fish farming is perhaps one of the most
“
Beyond the
generally
knowledge of
fish farming,
you would need
to study the
process of
farming fish if
you want to
become
successful with
the business.
lucrative aquatic farming businesses an
entrepreneur can start in Ghana, but that
does not rule out the fact that it can
sometimes be challenging especially if you
don’t live around coastal areas where you
can conveniently create a demarcation for
breeding your fish in commercial quantity.
Beyond the generally knowledge of fish
farming, you would need to study the
process of farming fish if you want to
become successful with the business. In
order to maximize profits with your fish
farming business, you need to learn the
process of hatching fish eggs and then
groom them to maturity when they will be
due for harvest.
21. Open a Frozen Food Shop
a frozen food store is a very easy
business to start and it is not so capital
intensive. Getting the right products that
people want to buy and good record keeping
are the secrets of running a frozen food
store. a frozen food store can be run offline
in the conventional retail store or online on
an online e-commerce retail site.
22. Start Groundnut Oil
Production Plant
actually, starting a groundnut oil
production company is not one of those
businesses that can be started without
proper research and study of the industry.
Groundnut oil production company can be
considered to be capital intensive, but it is
indeed a money – spinning business if it is
well located and if you are able to create a
robust distribution network.
23. Open Hair Extension
Production Factory
It is a known fact that hair extensions
and similar products are used in all parts of
Ghana and of course those that are in the
business of producing these products, are
known to generate sales year in year out if
the business is well – managed.
as a matter of fact, economic downturn
hardly affects the usage of hair extensions
and similar products simply because it is a
commodity that plays a major role in the
beauty world. This is no wonder the
production of hair extensions et al have
continued to soar high.
24. Start Hotel Business
Starting a hotel business is capital
intensive and it is considered a long-term
investment because it takes a while for the
owners to breakeven and start making
profits. no doubt it takes a big-time investor
to consider starting his or her own hotel
business, which is why loads of hotels are
owned by groups of investors.
One good thing about the hotel business
is that the business can grow so big that it
will not only have active presence in key
cities in the country where it started from,
but in major cities in all the continent of the
world.
When people lodge in hotels, they have
the options of subscribing to other services
the hotel offers.
Soap, Washing Powder and Synthetic
Detergent Manufacturing Company
Starting this type of business means
that you will be involved in the
manufacturing of products such as laundry
soap, transparent soap, translucent soap,
toilet soap, medicated soap, industrial soap,
soap flakes, soap powder and synthetic
products.
Synthetic products include household
and industrial detergents used for cloth
washing, dish washing, body and hair
washing, etc. The fact that laundry
detergents are used in all homes and
laundromats makes the product an
essential household commodity. any
entrepreneur who intends to go into this
business should plan rightly and research
thoroughly so that the risks in the business
can be greatly minimized.
25. Freight Packing and
Logistics Services Business
a freight packing and logistics services
business is a business that provide
consolidation of freight consignments, trade
document preparation, packing, crating and
otherwise preparing goods for
transportation and logistics consulting
services. With this type of business, you can
choose to operate from any part of the
country as long as there are businesses and
people who will patronize your services.
The truth is that a freight packing and
logistics services business is a
profitable business in Ghana, even though it
is capital intensive. Getting the right
medium (motor cycles, drones and delivery
vans and trucks et al) and good tracking
devices are some of the secrets of running a
successful freight packing and logistics
services business.
26. Open a Medical
Clinic/Hospital
Medical clinic or hospital provide
surgical and nonsurgical diagnostic and
medical treatment to inpatients with
medical conditions.
In general, hospitals maintain inpatient
beds and usually provide other services such
as outpatient services, operating room
services and pharmacy services. There is
indeed a very large market for hospital
(healthcare service) providers in Ghana.
27. Start a Metal Door
Production Company
a metal door production business is of
course one of the many businesses that can
be started in any part of Ghana and the
owner of the business can still penetrate the
global market by simply exporting his or her
products. Metal doors are basically doors
made from metal materials and in some
cases, these doors are bullet – proof and are
used in situations where security is of top
priority. It is a known fact that the
production of metal doors has continued to
soar high.
28. Start Micro Money
Lending Business
If you live in Ghana, you will agree that
loads of entrepreneurs are making money
from offering small loans to individuals
who cannot access loans from banks.
Starting a micro money lending business
can be demanding and risky at the same
time, but if you have done your due
diligence before venturing into the business,
you are likely not going to run at a loss.
First and foremost, you are expected to
have experience in the financial industry. It
will pay you to study accountancy or
banking and finance if indeed you want to
venture into this line of business.
29. Open a naturopathy
Clinic
If you are interested in starting a
business in the alternative medical practice
in Ghana, then you should consider opening
your own naturopathy clinic business.
Generally, naturopathy which is a
complimentary medical practice that uses
natural remedies to help the body heal itself.
It embraces many therapies, including
herbs, massage, acupuncture, exercise, and
nutritional counseling. This includes
therapies from the sciences of clinical
nutrition, botanical medicines, homeopathy,
physical medicine, exercise therapy, lifestyle
counseling, and hydrotherapy, which is the
use of water to treat a disorder or disease.
30. Start a network Marketing
Business
There is no limit to the fortune you can
make from this activity as long as you are
creative and have good marketing and
networking skills.
If you live in Ghana, you will agree that
loads of entrepreneurs and freelance
marketers are making good money from
selling the products of a company or their
own product via network marketing or
multi – level marketing as it is popularly
called. Starting a network marketing
business can be demanding and risky at the
same time, but if you have done your due
diligence before venturing into the business,
you are likely not going to run at a loss.
TO BE CONTINUED
...............................................
Ajaero Tony Martins is an entrepreneur,
Real estate Developer and Investor;
with a passion for sharing his
knowledge with budding entrepreneurs.
he is the executive Producer
@JanellaTV and also doubles as the
CeO, POJAS Properties Ltd.

Tuesday, August 16, 2022
WORK PLACE
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.

Tuesday, Tuesday, August March 16, 1, 2022
Cybercrime is an existential threat
to West Africa’s economic growth
WHILE
organisatio
ns across
West africa
work to
recover from the economic
impact of the pandemic, the
global cybercrime industry is
going into overdrive.
an increasingly
sophisticated cybercrime
industry is launching a range
of attacks aimed at
organisations and critical
infrastructure. Such attacks are
growing in volume and
sophistication, putting our
collective economic recovery at
risk at a time when
organisations invest more
heavily in digital technologies.
Global attacks on Internet
of Things devices, for example,
have risen 300% in 2019 alone,
and cost organisations untold
amounts of revenue and
disruption to their business
operations.
One study found that the
average cost of cybercrime is
$13-million per successful
attack, a huge 72% increase
over the past five years. The
growing digitisation of
industries across the region,
and the increasing power of
the tools at cybercriminals’
disposal, meaning the cost of
such attacks is likely to grow
even further over the coming
years.
In short, cyberattacks are
posing an existential threat to
the economic recovery of the
West africa region.
Cybercriminals set
sights on oil and gas
‘whales’
The oil and gas sector is
central to the economic
fortunes of the West africa
region. In nigeria alone, the
sector accounts for 10% of GDP,
and revenue from petroleum
exports contribute 86% of total
exports revenue.
Upstream revenue for oil
and gas in the region is
expected to register a
compound annual growth rate
(CaGR) of 6.7% between 2020
and 2025, while crude oil
production could register a
CaGR of 9.63% over the same
period.
Worryingly, cyberattackers
are ruthlessly targeted the
global oil and gas sector. a 2017
study found that 68% of
companies in the sector had
experienced at least one
compromise that had resulted
in the loss of information or a
disruption in their operations
in the past year.
In a recent example,
cybercriminals successfully
shut down the Colonial
Pipeline, effectively halting
50% of the supply of petrol and
diesel to the US East Coast. In
another example, ExxonMobil
revealed it blocks more than 64
million emails, 139 million
internet access attempts and
133 000 other potentially
malicious actions every
month.
The economic
consequences of a successful
cyberattack on this critical
sector can be devastating to a
region already suffering
collateral damage from the
pandemic. The situation calls
for a radical rethink of how
organisations across the region
– and across industries –
bolster their defences and
protect against cyberattacks.
attacks on ERP
systems growing
as the nerve centre of
modern intelligent enterprises,
ERP systems are increasingly
“A risk-based
approach that is
endorsed by the
board and focuses
on protecting the
organisation’s key
assets is needed.
Organisations need
to get a holistic
view of their
security risks and
then implement
solutions and
processes that help
secure and protect
data, applications,
systems and endusers.
targeted by cybercriminals.
attackers know these systems
run business-critical
applications and house
sensitive information, so any
data breach could provide
access to information they can
later use in the service of a
range of cybercrime activities.
as these systems
increasingly shift to the cloud
and integrate a growing suite
of business applications, the
opportunities for cyber
attackers increase too.
The amount of
transactional data in typical
ERP systems, for example,
represent a veritable gold mine
to cybercriminals. So does the
information about vendors,
suppliers and partners – the
more cybercriminals know
about the internal operations
of a business, the easier they
will find vulnerabilities to
exploit.
The nigerian Data
Protection Regulation, which
was announced in 2019, is
nigeria’s most comprehensive
data protection law and is set
to transform how
organisations collect and
process data in the country.
Organisations should look at
shifting their attitudes to
security and treat it as a
critical business imperative for
both compliance and better
protection against attack.
Taking steps to
secure West african
enterprises
a risk-based approach that
is endorsed by the board and
focuses on protecting the
organisation’s key assets is
needed. Organisations need to
get a holistic view of their
security risks and then
implement solutions and
processes that help secure and
protect data, applications,
systems and end-users.
The best defences typically
include both technical security
and transactional monitoring –
in real-time – to allow security
teams to take accurate and
appropriate action to keep
systems operating and data
safe.
Integrating an Enterprise
Threat Detection solution for
example gives insight into
suspicious activities in an
organisation’s ERP and other
business-critical applications.
This allows organisations to
identify breaches as they occur
and react in real-time to
neutralise any dangers.
a real-time data platform
can help efficiently analyse
and correlate log data to help
security teams understand
what happened within an
application, database,
operating system or network
component, and improve how
the organisation scouts for
cyberattacks across its most
valuable IT assets.
The importance of ERP
systems to the effective
running of West african
enterprises makes them prime
targets for cyberattacks. SaP
has worked with enterprise
security leaders around the
world to develop tools that
seamlessly integrate with ERP
systems and help protect an
organisation’s critical data
assets from cyberattacks and
data breaches.
Organisations across the
region need to recognise the
threat that cybercrime pose to
their operations, their
reputations, their employees
and their partners. Business
leaders, their security teams
and their technology partners
need to urgently implement
new controls or risk becoming
the latest victim in a rising
tide of highly damaging – and
increasingly sophisticated –
cybercrime.

Tuesday, August 16, 2022
How to choose a Bank
that will be useful to you
Just understand this; not all
banks will be useful to you and
your business!
A few decades ago a large
number of Ghanaians and
especially self-employed
people in the informal
sector didn’t want
anything to do with a
bank. Cocoa farmers
would just go to the bank
because that is where they
were paid. Farmers could
spend days before having
access to their money.
They will just withdraw
all their monies, just turn
around and walk away,
till the following year.
“Choosing a bank” was
not part of the
conversation then.
SOME formal sector employees used
to collect their salaries and wages
over the counter or table top. There
were many reasons people did not
patronize the services of banks;
• There were few banks
• The banks didn’t really do much to
attract customers because there was very little
competition
• If you are self-employed the banks gave
you very little attention and when making
withdrawals it was very frustrating because of
long waiting times (which is still the case
though).
• People preferred handling cash as
opposed to recent financial education on the
need to go cashless and still be able to transact
business.
• Prohibitive bank charges
• Laborious account opening procedures
(even without anti-money laundering
requirements)
In effect, it appeared banks just excluded
individuals who were in retail businesses. The
informal sector and rural Ghana were not
traditionally part of their target. Their
corporate accounts were just enough.
Small business owners (informal sector)
mainly didn’t show much interest in dealing
with the financial institutions. People
preferred keeping their monies in their safes,
lockers, under pillows, with a trusted partner
and any other place apart from the financial
institutions.
WHaT CHanGED?
Ghana had a change of government in
2000 and in came President kuffour. His
liberalization of the banking sector opened up
the banking industry. Treasury rates dropped
from the 40s to the 20s.
Foreign banks rushed in, lower-tiered
banks emerged, the Savings and Loans as well
as the Microfinance sector blossomed. all of a
sudden, the informal sector and rural Ghana
had what they can call their ‘bank’. They
began taking up some of the valued customers
of the then existing banks.
The traditional ‘elephant’ banks were
caught napping. They all realized that they
have to evolve to begin doing banking outside
of their plush and crowded halls.
They went on customer hunting,
scrambling for new accounts from the
markets, picking customers’ cash in specie
operations and credit giveaways (which was
also a blunder).
In addition to the industry trends, changes
in the way we do business and modern
advancements in technology also fueled the
need for businesses to maintain a bank
account.
This is the time customers should now
choose their banks. In the past decades, banks
in Ghana chose their customers. But now the
tables have turned.
now customers have the option to choose
their banks. Though the recent bank failures
have dented the opportunities, there are still
credible options. Suffice to say that financial
institutions do share some similar
characteristics, they can be different in certain
specifics. The specifics are what you go for. Do
not just allow some bank’s sales executive to
sell you any misfit service.
There are many banks in existence now
and businesses have a choice as to which
institution to bank with. Banks have now been
categorized into different bands serving
different needs.
There are;
• Universal banks
• Savings and loans institutions
• Rural banks
• Microfinance institutions
• Cooperatives associations
• Others
To have a fruitful relationship with your
bank, look for a bank that best serves your
needs and do business with them. not every
bank would be ideal in providing a service that
will be the best for you. Banks in themselves
have interests, specialities and sectors or
industries they see as profitable. They,
therefore, target such businesses and clients.
For every client segment they serve, they
choose which of their services or products that
best suit them.
In all of these, it is the duty of the business
owner or manager to decide, looking at what
the business has set out to do, to figure out
which financial institution will best serve
their needs.
In choosing a bank what do you look for?
• Look at your business needs, e.g. do I
have payments by cash, cheques, mobile
money,
• How do you also pay people? Do they
have the facilities to do seamless and safe
transactions? It may shock you to know that
as of 2021, some banks do not have reliable
mobile money integration. Sometimes you
have to walk to the bank to effect simple
transactions. This is the stone age!
• If you collect cash, are you safe with it?
There are savings and loans companies that
visit businesses for cash collection purposes.
This saves time and money journeying to their
office to make those same deposits.
• If you travel out do you have to carry
plenty of cash? You might want to consider a
financial institution with good nationwide
coverage to leverage on transactions when
travelling for business. This reduces incidences
of carrying of cash and eases the risks of cash
lost in transit.
• How often do you need financial support
to meet your obligations? You should not do
business with a financial institution that
always refuses you financial assistance, when
in need of support for supplies and meeting
operational expenses. You can do a simple
background check and ask around about the
financial standing of the particular institution
you want to do business with. The smaller
banks and Savings and Loans have generally
proven more responsive in that regard.
• How much am I prepared to pay for
banking services? Some banks charge for every
transaction you make. as a small business, it
could cost you a fortune. Get the full details
and seek advice from someone who can help
you to understand and interpret the charges.
• Do I even have time to visit the
bank? You will be better off doing business
with a bank that provides mobile banking
services. It saves you time and money.
• Do you usually get spare cash that
can sit? You may need a bank that has an
investment arm that could advise you to do
some investments apart from the old
uninspiring Fixed Deposit.
• Test their responsiveness. Send any
request to any of their customer channels and
see how long it takes for them to come back. It
took a bank 3 days to respond to our Whatsapp
message. You know that the bank will give you
a run for your money when you need
attention.
all the institutions talk of good customer
service but you can bet, some do not know
where customer service was born. From such
FLEE!
One warning, however; if you are start-up
a business, don’t approach any of them for
financing. They won’t and can’t help you.
Banks are not for startups. Venture capital or
Equity finance can help better.
We have not mentioned, the overcrowded
banking halls while only one cashier sits in
the cage. That is more for particular branches
than an entire bank’s attribute. Therefore be
conscious of which branch you will choose to
physically do your transactions.
Choosing a Bank – Final Hints
Once some of these questions are
answered you know that you have something
to hold on to even before you venture to work
with a bank. It may even be necessary to work
with more than one bank but don’t do more
than three. That is diversification but it can be
costly in terms of account maintenance fees.
Some business owners mistakenly open
multiple accounts because perhaps they
couldn’t resist the good customer
service by the sales and marketing reps
of a particular bank so they rush to open
accounts.
Don’t let a bad experience let you
begin to put your money in pillows or
safes in your room. You know if you
placed GHc10 million in a safe in 2010
and open the safe in 2021, you would
have lost over 50 percent of purchasing
power, which is the real value of your
money.
apart from the bank giving you
some interest to preserve purchasing
power, it would also be safe for you. So
you obviously need a bank, and you
deserve to have a fruitful relationship
with your bank. You need to choose your
bank, don’t let your bank choose you.
SOURCE: Ghana Talks Business

Tuesday, August 16, 2022 PAGE 11
The shortages hitting
countries around the world
aROUnD the the world,
people and businesses are
facing shortages of
everything from coffee to
coal.
Disruption caused by the Covid
pandemic is mostly to blame - but there
are many factors, and effects are being
felt in different ways.
China: Coal and paper
a "perfect storm" in China is hitting
shoppers and businesses at home and
overseas.
It is affecting everything from
paper, food, textiles and toys to iPhone
chips, says Dr Michal Meidan from the
Oxford Institute for Energy Studies.
She says these items "may end up
being in short supply this Christmas".
The problem stems mainly from an
electricity crisis, during which more than
20 provinces have experienced power cuts.
More than half of the country's
electricity comes from coal, which has risen
in price worldwide. These costs can't be
passed on to Chinese consumers because of
a strict price cap, so energy companies are
reducing output.
Coal production has also been hit by
new safety checks at mines, stricter
environmental rules and recent flooding,
says Dr Meidan.
It means that even as demand for
Chinese goods surges, factories have been
asked to reduce energy use or close on some
days.
US: Toys and toilet paper
at Christmas, "there will be things that
people can't get", a White House official has
warned.
Stocks of toys will be affected, as could
staples such as toilet paper and bottled
water, new clothes and pet food.
Part of the problem is a bottleneck at
US ports. Four out of 10 shipping
containers entering the US come through
just two ports - in Los angeles and Long
Beach, California.
On one day in September, a record 73
ships were forced to queue outside Los
angeles port. Before Covid, it was unusual
for more than one to be waiting.
Both ports have now moved to a 24/7
operation to help ease the pressures.
In some cases, shortages have also been
caused by ongoing Covid-related problems
in other countries.
american sportswear giant nike, for
example, makes many of its products in
southeast asian countries such as
Vietnam, where factories have
been closed.
Even when goods are produced,
delivering them to retailers has become
more difficult, says Prof Willy Shih of
Harvard Business School.
There has been a surge in spending by
US consumers, but disruption at factories,
ports and "overloaded" road and rail
networks have created a bottleneck, he says.
India: Cars and computer chips
India's biggest car manufacturer,
Maruti Suzuki, has seen production
plummet, partly because of a global
shortage of computer chips.
These chips manage features such as
engine supply and emergency braking.
The shortage has been driven by
pandemic-related disruption in countries
such as Japan and South korea.
Global demand for the chips - which are
also used in phones and computers - was
already rising before the pandemic, because
of the adoption of 5G technology. The shift
to home-working led to another rise in
demand, as people needed work laptops or
webcams.
The shortage of components coming
into India has been made worse by the
country's own energy disruption.
Coal stocks are running dangerously
low. The economy picked up after India's
deadly second wave of Covid-19, leading to
an increase in demand for energy. But
global coal prices increased and India's
imports fell.
The impact has been widespread, said
Zohra Chatterji, the former Chief of Coal
India Limited.
"The entire manufacturing sector -
cement, steel, construction - everything
gets impacted once there is a coal
shortage."
Families in India will be hit too, say
experts, as electricity prices increase. High
inflation means the price of essentials such
as food and oil are already up.
Brazil: Coffee and water
Brazil's most severe drought
in almost a century is partly to
blame for a disappointing coffee
harvest this year.
Combined with frosts and
the natural cycle of harvests, it
has contributed to a significant
fall in coffee production.
The challenges for coffee
producers have been made worse
by high shipping costs and a
shortage of containers.
Their rising costs will be
passed onto cafes across the
world, as Brazil is the largest
producer and exporter of coffee.
With most of the country's
electricity coming from
hydroelectric power using
reservoirs, the lack of water is
having a direct impact on the
country's energy supply.
as energy prices go up, the
authorities are asking people to
limit their electricity use to avoid
rationing. The energy minister said that
government agencies had been asked to
reduce their electricity use by 20%,
according to the Washington Post.
nigeria: Cooking gas
nigeria is experiencing shortages of
Liquefied Petroleum Gas (LPG), which is
mainly used for cooking.
This is despite the country having the
largest natural gas reserves in africa
The price of LPG rose by almost 60%
between april and July, pushing it beyond
the reach of many nigerians.
as a result, households and businesses
turned to much dirtier charcoal, or
firewood, for cooking.
The situation is likely have been made
worse by the depreciation of the currency
and re-introduction of taxes on LnG.
Experts warn that the shortage could
have alarming health and environmental
implications, as people turn to cheaper but
more dangerous fuel alternatives.
Lebanon: Water and medicines
There are concerns about shortages of
water, medicines and fuel in Lebanon.
For the past 18 months the country has
endured an economic crisis, which has
pushed three-quarters of its population into
poverty, crippled its currency and sparked
major demonstrations against the
government and Lebanon's political system.
The country's economy already had
problems before Covid hit. But the
pandemic has made things worse.
Fuel shortages have led to frequent
electricity outages, leaving businesses and
families reliant on expensive private
electricity diesel generators if they can
afford it.
In august, Un Humanitarian
Coordinator for Lebanon najat Rochdi said
she was "deeply concerned about the
impact of the fuel crisis on access to health
care and water supply for millions of people
in Lebanon".

BACK
PAGE
Tuesday, August 16, 2022
E-cedi will not affect MoMo
business – Bank of Ghana
THE Bank of Ghana has
assured that its quest to
implement the digital
currency, also known as
the e-cedi, will not disrupt
or collapse the mobile money
(MoMo) system.
according to the regulator, the
implementation will rather be a
positive one in the MoMo value
chain.
Speaking at the MTn Momo
Stakeholder Forum organised
which explored the impact of the
Central Bank’s digital currency on
future monetary policy and digital
payment, the assistant Director in
charge of Fintech and Innovation at
the BoG, Clarence Blay, maintained
that the Central Bank is committed
to protecting the businesses of
MoMo agents as it positions itself to
implement the e-cedi.
“Concerning those who are currently
facilitating access to digital
payments as agents, this is going to
be a positive disruption. It means
that all the actors in the space are
going to benefit. The Central Bank is
not going to issue a fiat that everything
has to be digital currency.”
He added, “We recognize that
the space is made up of diverse persons
with diverse needs and for inclusivity,
it is important that the
need of everyone is catered for. Some
will want physical cash, others will
want digital currency. We are not
trying to take away cash and replacing
it with digital currency. We are
responding to everyone’s needs.”
When questioned as to whether
the digital currency will have the
electronic transfer levy applied in
any form, Clarence Blay explained
that “the E-cedi is a currency. The
Central Bank issues currencies with
no tax attached to them. If there’s
going to be any levy at all, it’ll be a
levy on transactions. But the e-cedi
as it is now, has no levy on it”.
The government has adopted
digitization as a key policy and has
recently introduced a number of
programs including the Ghana Post
digital address system, mobile
money interoperability and the e-
cedi which is yet to be operational,
in order to develop a more digitally
accessible public sector and encourage
transparency.
The digital Cedi, or ‘e-Cedi’, is intended
to complement and serve as
a digital alternative to physical cash,
thus driving the Ghanaian cash lite
agenda through the promotion of
diverse digital payments, while ensuring
a secure and robust payment
infrastructure in Ghana.
It also aims to facilitate payments
without a bank account, contact,
or smartphone, by so doing
boosting the use of digital services
and financial inclusion amongst all
demographic groups.
In this regard, the banking
community has been tasked to be
proactive in developing specific digital
products for different types of
customers with the introduction of
the e-cedi.
The Central Bank announced
plans to start a three-phased pilot of
the currency to determine its feasibility
and subsequent circulation in
June last year.
But at the MoMo Stakeholder
Forum, the regulator insisted plans
are far advanced for the implementation
to be done. It however failed
to give any deadlines or timelines
for the introduction.
On his part, CEO of MTn Mobile
Money Limited, Eli Hini, urged Mobile
money vendors to brace themselves
for the positive impact that
will come with the implementation
of the digital currency.
He insists that “just like mobile
money came to create opportunities
for people, other innovations will
come with its opportunities, and we
should be ready to embrace it as
much as possible”.
“Today, our settlement cycle
takes a bit of time but the implementation
of the e-cedi will address
that problem so that we won’t have
to hold money and wait for settlement
to happen before we can have
value. also, our if our agents want to
do rebalancing of their float, they
have to carry physical cash to the
bank. The e-cedi will help to address
that and speed up the process. So innovation
will always come and you
have to make use of them,” he explained.
CEO of MTn Mobile Money
Limited, Eli Hini