African leaders urged to empower local manufacturers to compete under the AfCFTA | Business Prime

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African leaders urged to empower local manufacturers to compete under the AfCFTA | Business Prime

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Transcript
00:00 Good evening, welcome to Prime Business with me, Pius Kujo-Baka.
00:03 To our very first story, the Ghana Investment Promotion Center has attributed the surge
00:07 in investor interest in the economy to the country securing a program with the International
00:11 Monetary Fund.
00:12 The economy came under pressure in 2021, forcing some investors to sell off their Ghana bonds,
00:18 while some donor partners suspended funding to the country.
00:22 But chief executive of the center, Yofi Grant, says the fund program has given some optimism
00:27 to investors about the outlook for the economy.
00:30 The country in itself is endowed with significant resources that are quite important for many
00:37 other countries.
00:39 We are resource rich, very much like the continent.
00:43 The fact that we have gold, diamonds, bauxite, iron ore, manganese, salt, oil and gas, and
00:49 more recently lithium, makes us particularly interesting in resetting the global economy,
00:54 especially in these times of climate change, where these minerals, most of them called
00:58 transition minerals, are in Ghana.
01:01 And they are required for industry 4.0 going into now industry 5.0, the digital age.
01:09 And so they are very important.
01:10 But beyond that, I mean, Ghana also is very well imbued with significant agro-resources.
01:17 I mean, about 60% of our land mass is possible agricultural land.
01:22 I mean, it's estimated that we have some 13 million acres of very fertile land which can
01:28 be used for agriculture.
01:30 So in terms of the resources, we are very well positioned.
01:33 In terms of the policy orientation, too, we seem to have demonstrated very clearly that
01:38 we want to establish an economy of transformation, first by ensuring that we educate our kids
01:44 to be able to take over an economy of value-added economy by providing them free education at
01:53 a senior high school level.
01:54 And I keep saying that in the medium term, the minimum education of the average Ghanaian
01:58 will be high school education.
02:00 That is very significant for transforming an economy into a highly complex and sophisticated
02:06 one against what we've known from long, where we just dig up our resources and export them
02:11 in their raw form.
02:13 But beyond that, too, we have clearly set ourselves on a path of transformation with
02:18 value addition.
02:19 And the president's view that we should stop exporting our raw materials and resources
02:26 and add value to them before exporting is very instructive, not only for Ghana, but
02:30 the African continent.
02:32 Because the bane of African economics is the fact that we just export all our raw materials
02:37 and import finished goods from those very same raw materials, which hasn't done well,
02:42 hasn't done well for transforming wealth on the continent.
02:45 And for us, where there's a huge youth bracket, there is a need to create a new narrative
02:51 for the African continent.
02:54 Data they say is the new gold, hence the importance of a data system in the dissemination of information.
03:00 This is why the Ghana Statistical Service, in collaboration with Statistics Denmark,
03:04 made available StatsBank, which is an online database containing disaggregated data from
03:10 the 2021 Population and Housing Census, as well as other national surveys.
03:15 Government statistician Professor Samuel Kobnenim, in his opening remarks, noted the importance
03:20 of data systems in decision making, emphasizing the importance of the hackathon and its contribution
03:26 to policymaking.
03:27 We have realized as a country, a global community, that Ghana's development is characterized
03:34 by cyclical fluctuations.
03:37 And we are clear in our minds as a service that the only way we can end these fluctuations
03:44 in our cyclical development is what we are trying to do today, which is the Statistics
03:49 Bank.
03:50 You did indicate that it is a repository of data, and I'm happy to respond to one of the
03:55 questions from Raymond, why we are calling it a bank.
03:59 Chair and colleagues, it is clear out there that every investment, a $1 investment, in
04:08 a data system, please I didn't say data production, a data system, has a returns of $32 at the
04:16 minimum.
04:17 And for developing countries like ours, the returns can go as high as $73, hence the name
04:24 Statistics Bank.
04:26 So the output is that it is a repository of data set, but we are associating it with a
04:31 bank because that is what is going to unleash the potential, the transformation that we
04:36 seek to get as a country.
04:40 African leaders are being urged to empower their local manufacturers with the needed
04:44 investments and infrastructure to transform and industrialize the continent.
04:49 According to Executive Director of the African Center for Energy Policy, Ben Boakye, most
04:54 African leaders have failed to create the congenial environment for their indigenous
04:58 businesses, hence are unable to compete favorably under the African continental free trade area.
05:04 Speaking to Joy Business at day two of the Future Energy Conference, Mr. Boakye called
05:09 for a concerted effort to change the narrative.
05:12 What happened even with the panel, we're struggling to appreciate how we lack that
05:18 boldness, the leadership to detail out some of the specifics that links us into manufacturing
05:28 and industrialization.
05:31 You know in some countries you hear the leaders claiming that we are industrializing, but
05:35 the data actually shows that we are de-industrializing.
05:37 We are not in a state where you can even compare to the areas of increments of our world where
05:45 we now even have a more diverse industries, but the boldness and output actually shows
05:52 that we are de-industrializing.
05:54 So we need leaders to come to that realization and begin to empower our people and provide
05:59 the needed infrastructure and backbone for such industrialization to actually happen.
06:05 And unfortunately that is a key ingredient that is missing, the leadership to actually
06:11 appreciate what we need to do and build a consistent road map that helps all of us to
06:17 actually develop and advance our economies.
06:21 A recent study by the United Nations Institute for Natural Resources in Africa has uncovered
06:27 heavy reliance on pollutant fuels, especially charcoal and firewood.
06:32 Aside increasing their carbon footprints, the heavy reliance on these sources of fuel
06:37 is exposing small scale businesses in Ghana to energy shortages and adversely affecting
06:42 the outcome.
06:43 However, the institute is confident the innovative for clean agricultural technologies will help
06:48 to promote access to financing and capacity building to boost efficiency while promoting
06:53 inclusion.
06:54 Here's more.
06:55 Charcoal and firewood have been identified as leading carbon pollutants fueling small
07:00 and medium scale enterprises in the food processing sector in Ghana.
07:05 The heavy reliance on these polluting fuels is increasing the carbon footprint of these
07:10 small businesses, exposing them to energy shortages and negatively affecting productivity.
07:17 At a stakeholder meeting in Accra, experts suggest that the Innovate for Clean Agricultural
07:23 Technologies initiative will be a feasible solution to the challenges confronting SMEs.
07:30 Again, the informal sector in the food processing mostly use traditional energy sources.
07:39 These are charcoal, firewood and crop residues.
07:43 Even where modern sources are available, cases where business needed to switch from traditional
07:51 to cleaner fuels, the transition often involved the continued use of other polluting fuels.
07:59 These SMEs are also exposed to energy shortages and price fluctuations that negatively affect
08:09 their productivity, shifting demand towards even more polluting energy sources, even coal,
08:17 which leads to increasing their carbon footprint.
08:21 Based on the findings of this research, UNU-INRA highlights the need to promote the adoption
08:29 of clean energy.
08:31 Featuring its work in this subject area, UNU-INRA has been mandated by IDRC to implement a 30-month
08:40 project themed Innovate for Clean Agricultural Technologies in Ghana, Cote d'Ivoire and Senegal.
08:49 The rationale of our project is built on the premise that transitioning to sustainable
08:56 energy and food systems is crucial for achieving equitable and sustainable development.
09:03 Ghana's Ministry for Food and Agriculture says it views this new initiative as a major
09:09 boost for phase two of the Planting for Food and Jobs policy.
09:15 The Ministry of Food and Agriculture is delighted to be part of this program and as we move
09:23 on with the Planting for Food and Jobs phase two, we cannot succeed if we do not have affordable
09:35 and clean energy to unleash all the dreams we have locked up in that program.
09:44 As we move to cleaner and cheaper energy, I would want to also emphasize that we would
09:52 have to gradually move from the traditional systems to what we have ahead.
10:00 But what we ask for is the innovations from research to be widely shared for us to also
10:08 learn lessons and tag along the positives.
10:14 Innovate for Clean Agricultural Technologies InfoCart initiative aims at increasing economic
10:20 empowerment of women and youth in rural areas of selected West African communities in Senegal,
10:27 Ghana and Cote d'Ivoire.
10:30 InfoCart is very important because it's looking at machinery that will ease the women from
10:38 drudgery.
10:39 The few machinery that we are having will relook into getting more efficient and less
10:48 cost machinery for the women to use in their agricultural activities.
10:55 In more business news, corporate institutions have been intrigued to have clearer policies
10:59 to build resilience during crisis, according to the board chair of UBA Ghana, Kwikwa Wotre.
11:05 This is key to ensuring sustainability and growth of businesses.
11:08 You are speaking at the University of Professional Studies Faculty of Management Studies public
11:12 lecture.
11:13 How people report, it took us over a year to do it.
11:20 So here you are, you have a crisis, you lose two of your men.
11:26 They may not have been senior men, but you lost them anyway.
11:29 And the company took credit to realize that, wow.
11:36 Now that we understand what happened, we cannot let this happen again.
11:42 Again what was required, very extensive analysis, we did a root cause analysis report if you
11:48 don't understand that.
11:51 But we engaged, talked to each other, and now analyzed and came up with solutions.
11:58 So that was something, again, I was there.
12:02 And I saw how we then made the changes that changed the culture of WAPCO.
12:09 So the WAPCO today is a very different company from the WAPCO of 12 years ago.
12:18 Paymentech company Aza Finance has stressed that payment systems across the African continent
12:24 can be enhanced through collaboration and partnerships.
12:27 According to the company, which operates payment systems in over 115 countries in the world,
12:33 Africa can be the biggest beneficiary if payment platforms are harmonized.
12:37 Here is more.
12:39 Payment systems across the African continent is sometimes fraught with high cost transfers
12:44 and security issues.
12:46 Some analysts have argued that it will be prudent to promote reliable payment systems
12:51 across Africa to enable countries benefit from the continental free trade area.
12:57 Speaking to Joy Business after a network event with companies and business owners, country
13:02 director for Ghana and West Africa at Aza Finance, Nanaya Owusu-Banahine said the company
13:09 will continue to expand its work on the continent to provide good services to exporters and
13:15 importers.
13:16 I think our uniqueness is that we have the infrastructure already.
13:19 Over the 10 years we've existed in the continent, we've learned a lot of operational challenges
13:22 and how to resolve it.
13:24 And also we have deep liquidity in terms of local currencies in different markets.
13:28 So I think we are best placed to work with banks and fintechs to be able to overcome
13:31 this challenge.
13:32 Information security is very key to us.
13:34 We are PCI DSS certified and we are the only company in Africa that was recently certified
13:39 with ISO 2701 2022 certification.
13:43 So I think security is core to our mandate and what we do.
13:46 People should expect that we are collaborating keyly with banks and fintech across the markets
13:50 in Africa and work with different regulatory bodies to bring the dream of cross-border
13:56 payments, seamless cross-border payment to life.
13:59 On her part, the head of sales for Aza Finance in the UK, EU and US, Suki Srivatsan said
14:06 transferring money on the continent through third-party currencies like the US dollar
14:11 goes to increase costs for businesses on the continent.
14:15 We don't use the US dollar for those intra-Africa transactions, right?
14:20 So if you want to, as a business, pay somebody in Nigeria, the Ghanian CD and Nigerian Naira
14:27 are the only two currencies involved.
14:29 We're not going to pass it through the USD, then SWIFT, and that's going to just increase
14:34 the cost and increase the time.
14:36 So we've built technology and built the product around direct intra-Africa flows, and I think
14:44 that's what we really want to focus on.
14:47 Mieke Sissed and the executive director of Carbon AV and EMY Africa, Kodjo Subo, is advocating
14:55 for a fundamental shift in the corporate world.
14:57 He underscores the critical need for companies to employ marketing managers who possess a
15:03 high level of exposure and openness to recognize and endorse groundbreaking ideas and proposals
15:09 put forward by creatives.
15:11 Speaking in a new episode of Celeb Bees hosted by Amelie Josu, Kodjo Subo explained that
15:19 this lack of recognition on the part of marketers acts as an obstacle that impedes the seamless
15:25 integration of these ideas into business strategies and, most importantly, hinders creatives from
15:31 assessing the necessary financial support for their initiatives.
15:36 A lot of people are not exposed, they are used to the normal things, and it runs across
15:42 our corporate.
15:43 You know, even some of the marketing managers, when you go to them to let them do your proposal,
15:50 do your presentation, some of the things you say, it's over their head, don't get it.
15:56 They can't believe it can be done, yes.
15:58 You mentioned some figures, that's when the conversation ends in their mind.
16:03 When they're done, then it just ends there.
16:06 Why is a person asking for this money?
16:08 How can we leverage, if we're able to give them this money?
16:11 How can we as a brand leverage, be able to make the most out of this investment?
16:16 People don't think.
16:17 We think of doing the market observations, putting a billboard in the corner, but those
16:22 are 1960 way of doing things.
16:26 People have become more disruptive.
16:27 If you go to Nigeria, they are doing more disruptive activations.
16:31 They are doing more disruptive partnerships that brings your brand closer to your desired
16:40 customers.
16:41 It cuts across, and it's very, very frustrating.
16:45 It's one of the reasons why I'm doing all these activations outside Ghana, because I
16:51 believe that most people outside Ghana will get me.
16:54 Yeah, the picture you're trying to paint.
16:57 Will get me, because here, it's hard.
17:00 It's hard.
17:01 People have to come up to par.
17:03 It's just hard.
17:04 Getting sponsorship from corporate brands has been an issue in this country for the
17:09 longest time.
17:10 It's terrible.
17:11 It's terrible.
17:12 And there's the case, you're trying to say, "Oh, you've crossed your T's and dotted your
17:15 I's."
17:16 But from that angle, they're also not seeing your vision.
17:21 What do you think can be done to make sure everyone is at par?
17:26 I think that the corporate institutions, especially for marketing, you really need to get people
17:33 who are very well exposed, people who are open-minded for those positions.
17:39 Unfortunately, that's the only thing that can help, because they can defend.
17:44 They can let the brands understand that this is the direction that we need to go.
17:50 As far as we can only do our best, do our projects.
17:54 For me, nothing discourages me.
17:56 If you're a corporate brand, you're coming along, fine.
17:59 If you won't come along, I'll still do my events and do it to the best of my ability.
18:04 Elsewhere, some of these corporate institutions will rather come and pitch to you that, "We
18:11 see your brand.
18:13 We see where you're going.
18:14 We see that you want to partner."
18:15 They will pitch.
18:16 You have about four or five companies pitching to want to be part of it.
18:20 Fine.
18:21 Fortunately, I have a few who do that here in Ghana.
18:23 Well, Celeb Biz is a show that seeks to explore the entrepreneurial ventures of celebrities
18:30 in Ghana and beyond.
18:32 You can watch the full episode of Celeb Biz this Saturday at 5 p.m. on Joy Prime and on
18:37 Sunday at 9 p.m. here on the Joy News Channel.
18:40 And as I said, for The Bulletin, I am Pius Kuju-Baka.
18:43 Bye.
18:45 [music]
18:55 (chiming)

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