Day: April 8, 2024

Dr. Ngozi Okonjo Iweala, Director General, World Trade Organization (WTO), has urged African countries to strengthen regional integration through the transformative potential of the African Continental Free Trade Area (AfCFTA).

She said with evolving global trade dynamics, AfCFTA was significant as a catalyst for economic growth and development across Africa through regional trade.

Dr Iweala was speaking virtually at the 2024 ECOWAS Investment Forum (EIF) which took place in Lome, Togo, on April 4th and 5th 2024 in Lome, Togo on the theme: ‘Transforming ECOWAS Communities in a Challenging Environment.’

This year’s forum focused on stimulating economic growth, creating sustainable jobs, and building resilience in the face of global challenges.

To promote investment opportunities in key sectors of the ECOWAS member states, stimulate economic growth, create sustainable jobs, and build resilience in the face of global challenges such as food security, infrastructure development, and climate change, the EIF 20
24 had over 700 participants joining physically and some 400 others joining remotely.

The participants, including representatives from various ECOWAS member states, officials from the ECOWAS Commission, industry experts, managing directors and CEOs of financial institutions, said to unlock Africa’s full potential, there was the need to address the glaring deficit in infrastructure through robust resource mobilisation strategies.

Dr Okonjo Iweala said to boost investments, African countries needed to consider demographics, driven by youth as the workforce and the market of the future while enhancing regional integration through the African Continental Free Trade Area (AfCFTA) and growing the importance of commercial services digitally.

She said AfCFTA represented a historic milestone in Africa’s quest for greater integration and economic empowerment.

The WTO Director General said West Africa and the African continent continued to attract investors through trade to stimulate economic growth and create emplo
yment.

According to her, despite challenges such as the COVID-19 pandemic and the war in Ukraine, international trade had rebounded and progressed steadily.

She said in the last quarter of 2023, the volume of goods exchanged was 6.3 per cent higher than the peak reached before the pandemic in the third quarter of 2019, and 19.1 per cent higher than the 2015 average.

Commercial services trade, she noted, grew by 21 per cent in US dollar value from 2019 to 2023.

‘To continue development despite various challenges, the strategy has been to decentralize and diversify supply chains. At the WTO, we refer to this process as ‘reglobalisation’ with the aim of bringing more regions out of marginality into the global arena, while stimulating job creation,’ she said.

She explained that ECOWAS countries accounted for 0.7 per cent of global trade, mainly focused on exporting raw materials, while Africa accounted for three per cent of global trade.

To achieve globalization, Dr Iweala suggested that governments must wo
rk on reducing commercial costs within ECOWAS and improving physical and digital infrastructure.

She said, ‘Customs duty codes have been improved, facilitating the movement of goods at borders. Processes have been modernized with electronic tools and the digitization of other procedures.’

The Director General said the Investment Facilitation Agreement for Development, finalized by 166 members at our 13th ministerial conference in Abu Dhabi, could facilitate access to long-term financing by streamlining approval processes and avoiding bureaucratic obstacles.

‘With ECOWAS facing an investment deficit of around $12 million, this agreement is welcome. Thirteen out of fifteen members have signed, and we hope the remaining two will follow suit.,’ she stated.

Other projects are underway, such as collaboration between the WTO and local banks to facilitate digital access for businesses, especially women-led projects (particularly in exports). The digital economy presents an opportunity to seize,’ Dr Iweala said.

Mr Yao Kouassi, Managing Director, Vista Bank, said West Africa stood out as one of the most promising and attractive markets for investors due to numerous untapped sectors with vast potential for

innovation, such as renewable energy.

He said with Africa currently representing 16 per cent of the global population and projected to reach 25 per cent by 2050, there was significant opportunity to tap into a skilled workforce and create new avenues for growth.

Source: Ghana News Agency

The 2024 ECOWAS Investment Forum (EIF) has called for the pooling of resources to deal with Africa’s infrastructure deficit for sustainable development across the continent.

Participants at this year’s forum, organised by the ECOWAS Bank for Investment and Development (EBID) in partnership with the Togolese Government and the Government of India through Exim Bank India in Lome, Togo, said the continent’s infrastructure gap was a significant barrier to its economic growth and social development.

The 2024 Forum, on the theme: ‘Transforming ECOWAS Communities in a Challenging Environment,’ focused on stimulating economic growth, creating sustainable jobs, and building resilience in the face of global challenges.

To promote investment opportunities in key sectors of the ECOWAS member states, stimulate economic growth, create sustainable jobs, and build resilience in the face of global challenges such as food insecurity, infrastructure development, and climate change, the EIF 2024 had over 700 participants join
ing physically and some 400 others joining virtually.

The participants, including representatives from various ECOWAS member states, officials from the ECOWAS Commission, industry experts, managing directors and CEOs of financial institutions, said to unlock Africa’s full potential, there was the need to address the glaring deficit in infrastructure through robust resource mobilisation strategies.

Mrs. Kanayo Awani, Executive Vice President, African Export-Import Bank (AFREXIM Bank), speaking on ‘Infrastructure Deficit: Pooling Resources Towards the Development of Sustainable Infrastructure’ said due to its abundant resources and strategic position in global trade and maritime security, Africa continued to play a crucial role.

She said Africa’s young population offered significant potential for labour and the development of innovative projects.

The Executive Vice President said there was a persistent infrastructure deficit, critical for trade and connectivity between various economic stakeholders.

The im
pact of the deficit, Mrs Awani said amounted to between $130 and $170 billion per year, or two per cent of the Gross Domestic Product each year for Africa.

She said the inadequacy of energy infrastructure affects African consumption, with only 30 per cent having access to electricity, leading to a productivity loss of 40 per cent.

‘This leaves 600 million Africans without electricity,’ she added, and expressed optimism that there were solutions such as innovative financing mechanisms, strong regulatory frameworks that encouraged collaboration among others to be explored.

To facilitate investments, Mrs Awani said AFREXIM Bank had established effective guarantee programmes to drive strategic sectors, including infrastructure.

Mr Christopher Balliet Bleziri, Resident Representative, International Finance Corporation, Togo, said there was a need to demystify the concept of infrastructure and focus more on government development and job creation.

He highlighted their role in assisting governments in developme
nt and deployment, particularly in adhering to international standards, and ensuring proper risk allocation.

The International Finance Corporation, he said, had implemented hybrid models that financed viability deficits and another combining the public and private sectors on the same project.

The hybrid models, Shri G. Balasubramanian, High Commissioner of India to Nigeria, said had a significant impact in India, building 280 kilometers in Western India, both the private and public sectors were involved.

‘The viability gap funding is funded 40% by the Indian government. Gold monetization in banks through bond sales has also been implemented in the country,’ he explained.

Mr Siengui Appolinaire KI, Secretary-General, West African Power Pool (WAPP), said regional electricity infrastructure development faced challenges, particularly in finding public-private partnerships.

According to him, it was important to implement Public-Private Partnerships (PPPs) with investments and collaborations, while including s
trong government involvement to provide guarantees, generating profits to pay the private sector, and ensuring robust regulation with contracts benefiting all parties to prevent fraud.

Source: Ghana News Agency

Mr Felix Owusu Gyimah, the Municipal Chief Executive (MCE), Nkwanta South, said the Assembly’s collection of revenue has taken a dip due to the ethnic misunderstanding in the enclave.

He said revenue collectors had not met targets for its Internally Generated Fund (IGF) for some time now resulting from the current security issues in the Municipality.

The MCE said Nkwanta South used to be a bustling business centre in the Oti Region, where mobilisation of the Assembly’s revenue was an easy task for the collectors but due to the shooting incidents that rocked the enclave revenue collection had been in limbo.

Misunderstanding broke between Akyodes, Challas and Adeles leading to shooting incident that took the lives of some 16 people last October, with subsequent insecurity issues and placement of curfew in the area.

Mr Owusu Gyimah said all developmental projects were also in limbo as the Assembly had failed to generate the necessary IGF.

He, however, called on all stakeholders, opinion leaders, youth leade
rs and citizens to think about the betterment of the area and allow peace to reign.

He said the Assembly could not execute any developmental plans due to the security issues and urged all to burry their differences to ensure growth of the municipality.

Source: Ghana News Agency

Mr Kweku Ocran has been appointed as the new Group Chief Executive Officer (CEO) for Star Assurance Group, the parent company of Star Assurance, StarLife Assurance, StarMicroinsurance, StarHealth Insurance, and Pensol Capital Trust.

In a media release copied to the Ghana News Agency, the company said Mr Ocran takes over the leadership role from Mr. Kofi Duffuor, the former Chief Executive Officer, who has served the Star Assurance Group and its subsidiaries for more than 30 years.

Prior to this recent appointment, Mr Ocran served as the Chief Operating Officer (COO) at Star Assurance Group.

‘With an illustrious career spanning over three decades in the insurance sector, Mr. Ocran is a hands-on executive and ascends his new role with a wealth of experience and expertise to guide the group through its next phase of unprecedented growth,’ it said.

‘Mr Ocran’s impactful journey in the insurance industry is highlighted by significant achievements, notably his role as Deputy Managing Director/Chief Operations O
fficer at Star Assurance.

‘Under his leadership, the company achieved remarkable success, securing its position among the top three non-life insurers in terms of premium income and assets.’

Beyond his professional roles, the release said, Mr Ocran’s dedication to excellence extended to his entrepreneurial ventures and a strong commitment to knowledge-sharing.

‘His contributions as a lecturer and resource person have played a pivotal role in fostering the growth and development of the insurance industry,’ it said.

‘His leadership style is distinguished by his ability to foster collaboration, encourage innovation, and uphold high standards of corporate governance.

‘This sets the stage for an era of progressive leadership and growth for Star Assurance Group.’

Mr. Samuel Kweku Ocran, in expressing his gratitude for this new role, stated:’ I deem it a great privilege to be appointed as the Chief Executive Officer of the Star Assurance Group. I am humbled by the confidence reposed in me by the management and
board, and I remain grateful to them for their unfailing support over the years.’

He said: ‘With the support of the board, management, and our hard-working colleagues, I am confident that, together, we will continue to bring quality insurance solutions to our clients and continue to raise the standard of insurance in Ghana.’

Mr Ocran joined Star Assurance in 2006 and has since held many senior roles.

Prior to that, he commenced his insurance career with Vanguard Assurance and Enterprise Insurance as Deputy Manager and Assistant General Manager, respectively.

He also worked with the prestigious African Reinsurance Corporation in Lagos, Nigeria, and he has been in the insurance industry as a key player and resource person for over 30 years now.

Mr Ocran is currently a board member of the Ghana Oil and Gas Insurance Pool (GOGIP).

The new Chief Executive Officer is a Chartered Insurer and a Fellow, and he is also a member of the Chartered Insurance Institute (UK).

He is a member of the Chartered Institute
of Marketing (UK). He also holds a Master of Business Administration (Marketing Option) degree and a BSc. Admin. (Insurance Option), both from the University of Ghana.

Mr. Emmanuel Baiden, who now steps into the role of Group Chief Operating Officer, originally served as the Group Chief Finance Officer.

With a career spanning over two decades, Emmanuel has left an indelible mark across various sectors.

In 2001, Mr. Baiden embarked on his remarkable tenure with Star Assurance Company Limited, where he amassed extensive experience in the insurance industry, gaining over fifteen years of invaluable insights and accomplishments.

‘Mr. Kofi Duffuor, the former Chief Executive Officer, having served over 30 years with the group and its subsidiaries, continues to play a vital role on the Star Assurance Group Board and other boards,’ the release said.

‘His focus remains on spearheading pivotal strategic initiatives within the insurance realm for the group.’

Source: Ghana News Agency

Users of the GhanaPay mobile money service can now enjoy the benefits of a savings wallet, which offers attractive monthly interest rates.

This development follows the successful implementation of the GhanaPay savings wallet, as disclosed by the officials of the Ghana Interbank Payment and Settlement Systems (GhIPSS).

Dubbed ‘MyGhanaPay Savings,’ this value-added feature on GhanaPay mobile money allows customers to transfer funds from their main wallet into a dedicated savings account within the GhanaPay mobile money platform.

The primary aim of MyGhanaPay Savings is to empower users to save for emergencies and other future financial needs.

The savings wallet is designed to prevent direct spending, requiring users to transfer funds back to their main GhanaPay account to access them, thereby reducing the temptation to deplete savings.

Customers can transfer funds to their savings wallet using either the GhanaPay mobile app or USSD service.

The savings wallet offers monthly interest rates of up to 2.5 per
cent or more, depending on the user’s bank. This interest is separate from the quarterly interest paid to the main wallet, making it a superior option compared to other mobile money services in Ghana.

Samuel Darko, Head of the GhanaPay Mobile Money Unit at GhIPSS, stated in an interview that all GhanaPay mobile money bank partners offered the savings wallet functionality, ensuring that customers can benefit regardless of their bank affiliation.

He explained that ‘while the main wallet earns only 1.5 per cent interest quarterly, the savings wallet accrues interest monthly at rates of up to 2.5 per cent or more, depending on the bank.’

Mr. Darko emphasized that introducing the savings wallet is aimed at simplifying the saving process for customers by segregating funds into a dedicated account, making it effective for them to achieve their financial goals.

GhanaPay mobile money service, offered by universal banks, rural banks, and savings and loans companies, combines mobile money features with banking servi
ces.

Accessible via USSD (*707#) or the GhanaPay App, available on the Google Play Store and iOS App Store, the service brings banking convenience to mobile devices.

The addition of the savings wallet enhances GhanaPay’s contribution to deepening financial inclusion and boosting domestic savings in Ghana.

Source: Ghana News Agency

In a significant engagement underscoring international collaboration for sustainable development, Development Bank Ghana (DBG) hosted a distinguished delegation from Germany’s Bundestag (Federal Parliament).

The visit took place at DBG’s headquarters recently.

The German delegation was led by Mr. Volkmar Klein, MP, representing the State of North Rhine-Westphalia, and Mr. Lutz Lienenkämper, the State’s former Finance Minister.

They were joined by Mrs Ramona Simon, Deputy Head of Cooperation at the German Embassy in Ghana, alongside KfW Development Bank’s officials, namely, Ms. Sarah Christin Petrenz, Senior Portfolio Manager, and Mr. Isaac Hagan, Portfolio Coordinator – Financial Sector, representing the German state-owned development bank’s Accra office.

Discussions during the meeting spanned DBG’s forward-looking initiatives, including the Green Finance and Investment Facility and the DBG Guarantee product, highlighting DBG’s commitment to fostering economic resilience and sustainability.

The Green C
redit Line (financed by the German Federal Ministry for Economic Cooperation and Development (BMZ), implemented by KfW) is envisaged to start implementation in the second quarter of 2024 in Ghana and is expected to complement DBG’s efforts in green financing. 

A focal point of the visit was the introduction of the upcoming 3i Africa Summit, slated for May 13th-15th, 2024, in Accra. This summit promises to be a ground-breaking event, focusing on technology opportunities within Africa’s financial sector.

It aims to explore market dynamics, the leapfrogging of legacy technologies, and the crucial dialogues needed at the intersection of policy, finance, and technology.

With a core emphasis on inclusion and sustainability, the 3i Africa Summit aspires to drive meaningful discourse and actionable insights for the continent’s financial ecosystem.

The DBG team, led by Deputy Chief Executive Officer, Michael Mensah-Baah and including key officials such as Chief Risk Officer, Dr. Prince Adjei, and heads of various
strategic departments, shared insights into DBG’s operational strategies and its vision for a transformative impact in collaboration with its partners.

Reflecting on the discussions, Michael Mensah-Baah remarked, ‘The German Government, through KfW, has been very supportive of DBG and its efforts to foster economic growth by empowering local businesses. We have had fruitful discussions on our

operations, our agenda for 2024 and how we are positioned for greater impact through our lending activities and technical assistance to local businesses in collaboration with our partner banks and agencies respectively. We look forward to our ongoing collaboration and believe that together with our German partners, we will be able to deliver significant transformation. We are primed for this.’

Mr. Volkmar Klein, MP from the German State of North Rhine-Westphalia, on the other hand, commended DBG on the work it is doing and how far DBG has come.

Development Bank Ghana is a wholesale financial institution established b
y the Government of Ghana.

DBG acts as a provider of long-term capital to the market with a mission to foster strong partnerships to finance economic growth, create jobs, and build capacity for SMEs.

The organisation is committed, aligned and strengthened to achieve UN Sustainable Development Goals (SDGs) ambitions and targets while implementing an Environmental, Social, and Governance (ESG) strategy aimed at creating shared value and impact with purpose.

The bank has received funding from the World Bank, the European Investment Bank, the KfW Development Bank and the African Development Bank. 

Source: Ghana News Agency