Solving Africa’s energy poverty critical to achieving net-zero –
Huawei Adjudged Africa’s Top Employer in Ghana and 10 other Countries Pg
Dr. Donald Kaberuka
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THURSDAY 26 January 2023 Issue No. 7
A NEW THINKING
Time to chart a new path in African FDIs GIPC boss
The multilateral financing paradox Multilateral development banks (MDBs) have become the darling of policymakers nowadays. In a recent speech, US Treasury Secretary Janet Yellen called on the World Bank and other international lenders to support developing countries struggling with the effects of rising inflation and aggressive interest-rate hikes. And a recent independent report commissioned by the G20 concludes that these institutions are uniquely positioned to help governments achieve the United Nations’ Sustainable Development Goals. The G20 report argues that MDBs could expand their lending without hurting their AAA credit ratings, were it not for excessive capital-adequacy requirements that limit lenders’ ability to take risks. But which countries would benefit the most from an increase in multilateral financing? While multilateral development banks play a critical role by providing long-term loans at concessional interest rates to low-income countries (LICs), the overwhelming majority of their financing goes to middle-income countries (MICs). A recent OECD report finds that 70% of MDB loans went to MICs in 2020, following a large increase in lending to lower-middle-income countries (LMICs). In other words, the problem is one of allocation, not volume. Clearly, MDBs must significantly increase their lending to developing countries struggling with extreme poverty and limited institutional capacity. Unlike MICs, most LICs have little to no access to capital markets and are in dire need of financing, owing to the disproportionate effects on their economies of the COVID-19 pandemic, the war in Ukraine, and climate change. Why, then, is multilateral lending so skewed toward MICs? The reason is rooted in the MDB financing model. International lenders like the World Bank, the African Development Bank, and the Inter-American Development Bank rely on their perfect credit ratings to
By Eugene Davis
Chief Executive Officer of Ghana Investment Promotion Centre (GIPC) Yofi Grant has rallied Investment Promotions Agencies (IPAs) across the continent to take advantage of the relationships among member-states to strengthen regional trade in order to make the Africa Continental Free Trade Area (AfCFTA) a reality.
trade. So, notwithstanding the problems we have today, those problems would be resolved, the world will go on and it will recover.
According to Mr. Grant, the time is ripe for the continent to chart a new path in the African Foreign Direct Investment (FDI) story as well as liberalizing tariffs in Africa would unleash billions of dollars in untapped export potential, stressing that with plans under way to remove market frictions that hinder intra-Africa trade, AfCFTA is on course to increase intra -African trade by 81% by 2035.
I dare say our private sector is ready and what all they need is redirection into where the opportunities are and they will elevate themselves and be a credible partner to economic growth.”
“There is opportunity for us to add value to our raw materials and resources and leverage on the higher ends of the value chain.
For his part, a Deputy Minister of Trade and Industry, Herbert Krapa, urged member countries to consider critically the incentives they give to investors, in order to ensure that they are Speaking at the first Annual As- smarter and would yield results sembly of African Investment in the long run. Promotion Agencies summit in Accra, he said “We the IPAs have He added “We have taken some decided to come together to go significant steps but now is the through what we believe should time to pay attention to investbe the questions that we ask our- ments that will ensure that selves and to ensure we play a AfCFTA thrives, that it takes off very critical role in ensuring that fully and that is why I mentioned in my remarks that it is the AfCFTA becomes a reality. happening at a very good time For us in Africa, we think the op- to see how they can streamline portunity is real, we think it is regulations, goods, resources, looming right in front of us and work with government instituwe need to take advantage. And tions. to do that, we need to facilitate intra-continental investment to He said Ghana is ready in terms bring about intra-continental of institutional support, facto-
UBA awards 2022 National Essay Competition winners By Rabah Arezki
United Bank for Africa (UBA) Ghana has today presented a sum of $10,000 to the three overall winners from the 2022 National Essay Competition at an award presentation ceremony held at Alisa Hotel in Accra. The winners are Genevieve Budu of the Ghana International School, Kenrich Nii Nakai Nettey from Presbyterian Boys Secondary School, Legon and Cecilia Akye also from the Methodist Girls High School, Manfe. They received $5000, $3000 and $2,000 respectively as educational grants from the UBA Foundation. In addition, all ten finalists received medals, 2
DDE: Banks SES HD PLUS secure 5% Ghana appoints coupon for 2023; new CEO other revisions The government has revised some terms of its Domestic Debt Exchange Programme (DDEP) following discussions with the Ghana Association of Banks. Hitherto, the new bonds under the programs were not to accrue any interest until 2024, starting at 0% coupon in 2023 which steps up to 5% in 2024 and 10% from 2025. But after the engagements between the bankers and the Ministry of Finance, bondholders will now enjoy a 5% coupon in 2023. This also translates into an effective coupon rate of 9% according to a joint press release by the Finance Ministry and Ghana Association of Banks. The agreement encompasses 3
The Board of Directors of Ghana’s premium high-definition (HD) satellite broadcast service provider SES HD PLUS has appointed Adelaide Ahovy Abbiw-Williams as Chief Executive Officer effective from January 1, 2023. Mrs Abbiw-Williams until her appointment was responsible for launching HD+ in Ghana where she successfully positioned HD+ as the preferred choice for quality TV viewing experiences within the free-to-air satellite TV broadcasting industry in Ghana. Her career spans several commercial roles across the Fast-Moving Consumer Goods (FMCG), manufacturing, telecommunications, mobile finan3
Finance Ministry prepares guidelines for emergency expenditure The Ministry of Finance is preparing an Emergency Expenditure Management Guideline that will provide government with administrative protocols in times of emergency such as the COVID-19 pandemic. This is to ensure compliance with relevant Public Financial Management regulations, while at the same time providing timely responses to pandemics. The Emergency Expenditure Management Guideline is being prepared, following recommendations by the Auditor General in its report on Government’s COVID-19 Expenditure for the period March 2020 to June 2022. The ministry in a press release 3
a new thinking ...