South Africa: Minister Xasa Wants Bigger, Better Deal for Women in Tourism

December 7, 2017

Tourism Minister Tokozile Xasa has called for the acceleration of women empowerment, especially at the decision making and executive levels so that women can make a meaningful contribution to the tourism industry.

“Women have an important role to play in transforming the industry and growing tourism,” Deputy Minister Xasa said.

She was speaking at the opening of the Women in Tourism Conference in Port Elizabeth on Wednesday.

A baseline study conducted by the Tourism BBBEE Council on the State of Tourism Transformation revealed that only 11% of enterprises had black women representation at boards, executive and senior management positions, and that the overall rate of transformation was slow.

“We must unite to work together to influence government’s policies and programmes.

Collectively, our active participation can result in a transformed and inclusive industry,” Deputy Minister Xasa said.

More than 200 women from the African region gathered in Port Elizabeth for the annual Women in Tourism (WiT) Conference, which was held under the theme ‘Sustainable Tourism: A Tool for Radical Socio-Economic Development for Women’.

The two-day conference provided a platform for dialogue on the challenges that affect the socio-economic empowerment of women, funding constraints, and the establishment of support structures and incentives.

“Radical social and economic transformation has been prioritised to accelerate the process of empowering South Africans, especially women and the youth, to play a meaningful role in building a sustainable economy.

“It is concerning that the representation of women at executive and senior management positions is low. Our collective participation is critical to transforming this sector,” said Minister Xasa.

Credit: (Sanews.gov.za)

Poor flight connectivity, strict visa rules make tourists avoid Africa

December 7, 2017

0

No African city made it to the Top 100 City Destinations ranking released a week ago by research firm Euromonitor International. This is because interconnectivity among African cities is poor, as there are few direct flights between countries by the continent’s airlines.

instance, a traveller from East Africa to the North African city of Algiers has at least four African airlines to choose from, but they all have at least one connection with a two-hour layover. Such travel challenges, coupled with visa restrictions, continue to keep away tourists who would want to tour different parts of the continent on one visit.

It’s important for African countries to simplify cross-border travel

In contrast with the United States and Europe, where there is more interconnectivity between cities, Africans need visas to travel to other African states.

African Development Bank’s 2017 Africa Visa Openness Report shows that there are just 11 countries that have relaxed visa rules for Africans. These are the Seychelles, Uganda, Djibouti, Somalia, Madagascar, Comoros, Togo, Guinea Bissau, Mauritania, Mozambique and Benin.

In many cases, it is easier for a citizen of another continent to enter an African country than it is for an African. But some countries like Ghana give visas on arrival for all African Union member states and visa-free entry for members of Economic Community of West African States (Ecowas).

Travel agents and tourist service providers say it is important for African countries to simplify cross-border travel by easing and, in some cases, abolishing visa restrictions.

“In West Africa, we have been lobbying governments to have an Ecowas tourist visa that will give access to all countries in the bloc. Whether it will be implemented is another story, but the principle of open borders is great,” said tour services operator, David Oades of Overlanding West Africa.

Top 10

According to Euromonitor International, the top 10 cities in the world that people want to visit are Hong Kong which receives 26.6 million people a year, followed by Bangkok (21.2 million), London (19.2 million), Singapore (16.6 million), Macau (15.4 million), Dubai (14.9 million), Paris (14.4 million), New York (12.7 million), Shenzhen (12.6 million) and Kuala Lumpur (12.3 million).

In the Middle East and Africa category, the only African cities featured are Johannesburg and Cairo, at position 2 and 10 respectively. The report ranks Dubai as the top destination in the category.

South Africa considers tourism part of its economic growth strategy. Johannesburg has a smart access programme through which it aims to provide free Wi-Fi access across the city by 2020.

Internet connections are the holy grail for travellers who need it to find maps for navigation, to load taxi-hailing apps like Uber, for weather forecasts, and finding accommodation.

Credit: Maryanne Gicobi

Tax holidays and increase debt to equity threshold for Public Private Partnership

December 7, 2017

0

Executive Summary

The public-private-partnership (PPP), or private-finance-initiative, model has been used since the early 1990s to finance and procure infrastructure projects around the world. In Australia, Britain, Canada, parts of continental Europe, and, more recently, in the United States, the use of private-sector capital and expertise has helped to fund many high-quality infrastructure assets.

In Australia and Canada, such analysis has been carried out. Essentially, agencies in both countries have concluded that, while private finance is more expensive, the government gains private-sector innovation, transfers substantial risk, receives efficient whole-of-life treatment of the asset, and, ultimately, generates more value than if the government financed the project itself. Partnerships British Columbia and Infrastructure Ontario, which are responsible for the vast majority of Canadian PPP projects, as well as Infrastructure Australia, have published comprehensive methodologies that compare the private-financing premium with the value of the benefits that PPPs can provide. All three agencies found that using PPPs or alternative financing and procurement methods can be cost effective.

As the Parliament of Ghana deliberates on the Public Private Partnership (PPP) Bill, 2016, I will like to add my 2 cents to the Bill through this article. This article seeks to encourage Ghana public policy makers to include a PPP tax credit as an incentive to unleash private investment into public infrastructure.

Specifically, I propose the following

PPE investor’s incentive– Tax holiday should be given to PPP investors by allowing 100% income tax deduction for equity investments for persons investing in companies that enter into PPP with Government. This translates into a general 25% tax credit
PPE Company’s incentive: Increase the thin capitalization threshold of 3: 1 to 4:1 for PPE companies in order for them to deduct more of their debt interest as tax deductible.

Below are questions and answers to give explanation on the proposed plan above.

What is infrastructure?

Infrastructure is the fundamental facility and system serving a country, city, or other area, including the services and facilities necessary for its economy to function. It typically characterises technical structures such as roads, bridges, tunnels, water supply, sewers, electrical grids, telecommunications (including Internet connectivity and broadband speeds), and so forth, and can be defined as “the physical components of interrelated systems providing commodities and services essential to enable, sustain, or enhance societal living conditions.

Infrastructure may be owned and managed by governments or by private companies, such as sole public utility or railway companies. Generally, most roads, major airports and other ports, water distribution systems, and sewage networks are publicly owned, whereas most energy and telecommunications networks are privately owned. Publicly owned infrastructure may be paid for from taxes, tolls, or metered user fees, whereas private infrastructure is generally paid for by metered user fees. Major investment projects are generally financed by the issuance of long-term bonds.

Why infrastructure matters

The provision of public infrastructure and services is one of the prime mandates of Governments all over the world. Infrastructure (such as roads, power, rail, water and sanitation, sea and airports, among others) is a fundamental prerequisite for economic growth and development. In addition, social and community infrastructure including education and health facilities, public housing and buildings, social, cultural and commercial facilities and infrastructure are essential in modern societies. All over the world studies have consistently shown the close relationship between infrastructure and economic output[1].

The state of Ghana’s infrastructure

	Current state
Air transport	Low volumes in the air transport sector offer vast future potential.
ICT	Very competitive market with high levels of mobile penetration at relatively low cost
Ports	Domestic maritime trade is served by two ports: Tema, around 25km east of Accra, the capital; and Takoradi, 230km to the west. The two ports handle more than 90% of foreign-trade volume
Power	Well-endowed with generation capacity Good electrification rate
Railways	Rail freight and passenger volumes are negligible
Roads	Road transport is by far the most important means of moving freight in Ghana and is the sector that requires the greatest consideration. Roads carry 95% of passengers and 98% of the country’s freight. The Government is spending on average 1.5% of GDP on roads, one of the highest levels in West Africa
Water resources	Substantial volume of water storage available by Africa standards.
Water and sanitation	Reached MDG for water Significant improvements in utility finances

Source:

https://www.oxfordbusinessgroup.com/overview/gaining-momentum-transport-infrastructure-upgrades-take-shape-cooperation-private-sector

https://www.pwc.com/gx/en/transportation-logistics/publications/africa-infrastructure-investment/assets/ghana.pdf

Ghana infrastructure compared to other countries in Africa

Below is a PwC infrastructure index assessment of countries in Africa. As noted below, Ghana ranks very low among a lot of Africa countries.

Source: https://www.pwc.com/gx/en/issues/strategy/emerging-markets/africa/assets/into-africa-launch-presentation.pdf

Funding of infrastructure in Ghana

The source of financing of infrastructure in Ghana varies significantly across sectors. Some sectors are dominated by government spending, others by overseas development aid (ODA), and yet others by private investors.

During the five years from 2003 to 2007, Ghana’s economy grew at an average annual rate of 5.6 percent, which accelerated to 7.3 percent in 2009. Ghana’s infrastructure improvements added just over one percentage point to the per capita growth rate for the period 2003 to 2007.

As of 2008 in the United States for example, public spending on infrastructure has varied between 2.3% and 3.6% of GDP since 1950. In addition to government’s investments, many financial institutions in the US have investments in infrastructure. Thus, there is high level of private sector investments in infrastructure projects in the US.

Public Private Partnership Bill 2016

Currently, before the Parliament of Ghana is the Public Private Partnership Bill.

The Public Private Partnership Bill, 2016 has gone through its second reading granting it a safe passage into the consideration stage for discussion and approval of proposed amendments by parliament.

The bill seeks to establish a legal framework for the development, implementation and regulation of Public Private Partnership (PPP) arrangement and projects between public institute and private entities for the provision of public infrastructure and services.

The introduction of the bill forms part of government’s efforts to protect the investments of private entities involved in the PPP and boost investor confidence to improve quality and affordability of public infrastructure and services. The bill establishes the Ghana Partnership Agency (GAP) to take up the responsibility of spearheading the development of PPP programs; the GAP will be made up of professionals with the requisite expertise to take up the responsibility for continuity and effective implementation of PPP. The Agency will be responsible for issuing standardised PPP provisions, manuals and guidelines for the effective management of PPP projects. Namibia in 2016 passed a similar Bill[2]

In the 2017 Government Budget[3], the Government signaled its commitment to pass the Bill quickly, and any amendments are likely to be minor as the Bill is in line with international best practice, and with other PPP legislation in Africa. The Budget noted that Under the Ministry’s Public Private Partnerships (PPP) programme, feasibility studies for the Accra–Takoradi and Accra-Tema Motorway projects will be completed in 2017. A procurement process is currently underway for consultancy services for preparing the regulations under the Act, with work expected to begin in October. The passage of the Bill will ensure strict compliance in the provision of public goods. The state currently requires GH¢1.5 billion every year over a 10-year period to meet its infrastructure needs. As such, the absence of an effective legal framework for Public Private Partnerships (PPP) has also been of major concern to investors.

The Ministry of Finance is using the Ghana PPP programme to attract public and private sector resources and expertise to close the country’s infrastructure gap, estimated at $40 billion, or between $3.9 billion and $5.5 billion each year until 2026.

Scope of the Bill

It is necessary to establish which type of projects will fall under the definition of a PPP, to give a clearer idea of what sorts of project structures will be viable under the PPP Act, and an indication of how closely the new regime accords with that under the PPP policy.

The PPP Bill contains a more detailed definition of PPPs than the PPP policy, and applies to any “public sector project undertaken in the form of a partnership arrangement between a public authority and a private entity”.

The concept of a “public sector project” refers to projects identified in one of several government infrastructure planning documents, including the National Infrastructure Plan. This will provide investors with confidence, knowing that a project has been sanctioned as part of a broader infrastructure planning process.

A private entity is defined as a “person from the private sector” who enters into a PPP. A public authority, on the other hand, encompasses a wide range of entities, which would traditionally be considered state institutions, including state-owned enterprises and government departments, ministries and agencies.

A “partnership arrangement” is the key concept in the definition of a PPP, defined as “the legal, regulatory, contractual, financial, administrative and other arrangements for and in respect of [public private] partnerships”. PPPs, in turn, are defined as “a form of contractual arrangement between a public authority and a private entity for the provision of public infrastructure or public services traditionally provided by the public sector, as a result of which the private entity performs part or all of the service delivery functions of government, and assumes the associated risks over a significant period of time”.

Accordingly, the applicability of the PPP Act remains effectively similar to the PPP policy and accords with regional best practice, as it remains focused on the same key elements of public infrastructure or public services, provided by the private sector, with significant risk transfer over a long term.

The Bill identifies certain set forms of project structures to which it will apply. These range from infrastructure development arrangements such as the simpler “build and transfer” agreements to more complex “build, own, operate and transfer” contracts. The Bill also describes more specialised arrangements such as indefinite length “rehabilitate, own and operate” contracts, management contracts for the management of PPPs, and “supply, operate and transfer” contracts for the provision of equipment and machinery as well as training on their operation.

Another important aspect is to identify which projects will not amount to PPPs.

Projects where the functions of one institution are provided by a state-owned enterprise or other public authority will never be considered a PPP. This is clear from the use of the term ‘private party’, either directly in the application section, or in the definition of a partnership agreement.

Projects where technical, operational and financial risk is not transferred to a private entity for a sufficiently long period of time will not be considered PPPs. This remains consistent between the PPP policy and the PPP Bill, and is one of the fundamental purposes of a PPP. This excludes short term projects, where the “sufficiently long period of time” criterion is not met, and small procurement contracts such as those where the term is less than 15 years.

It will also exclude traditional outsourcing arrangements, where a contractor merely performs a public function for remuneration but does not take on risk, such as a security contractor at a public building.

Ordinary lending by the government, except where it relates to a PPP, will not be considered a PPP. Privatisation, in the form of complete divestiture of a state function, and joint ventures between the public and private sectors, are also not considered PPP.

My proposal: Unleash the potential of private investors to finance infrastructure in Ghana

Specifically, I propose the following

PPE investor’s incentive– Tax holiday should be given to PPP investors by allowing 100% income tax deduction for equity investments for persons investing in companies that enters into PPP with Government. This translates into a general 25% tax credit
PPE Company’s incentive: Increase the thin capitalization threshold of 3: 1 to 4:1 for PPE companies in order for them to deduct more of their debt interest as tax deductible.

H. A winning game plan: key questions that needs to be answered

To take advantage of the opportunities in infrastructure in the next few years, infrastructure investors and developers, tax equity providers, local governments, and policymakers should be developing answers to a few key questions.

Infrastructure per funds and private project developers

How much tax appetite do we have? Could we directly monetize the proposed tax credit?
Do investors in our funds have substantial tax appetites? If so, how would we structure our funds to efficiently allocate tax credits?
If we can neither use the tax credit directly nor pass it efficiently to our investors, how can we tax equity? What are the project attributes that would make a project more or less appealing to tax equity?

Tax equity providers

What contacts do we have in the infrastructure world? What can we do to establish our credibility there?
How much tax capacity do we have? How much could we have? Assuming a large increase in tax equity required by the market, are there opportunities for us to syndicate tax capacity rather than simply using our own?

Policymakers

What types of infrastructure should be eligible for the tax credit?
How do we ensure the tax credit only incentivizes infrastructure that would not be built otherwise?
How do we design a tax credit that makes it easier—not harder—for project developers and investors without their own tax appetites to efficiently partner with tax equity investors?

[1] http://www.mofep.gov.gh/?q=news/060713

[2] http://www.parliament.na/phocadownload/bills/2016/b24.pdf

[3] http://www.mofep.gov.gh/sites/default/files/budget/2017%20BUDGET%20STATEMENT%20AND%20ECONOMIC%20POLICY.pdf

New IFC, Mastercard Foundation study examines attitudes to mobile money in Africa

December 7, 2017

0

Nfc payment — Buyer with smartphone paying through terminal

IFC, a member of the World Bank Group, and the Mastercard Foundation has published an ethnographic study on the perceptions and attitudes to digital financial services in Sub-Saharan Africa. The study will increase financial inclusion by helping financial services providers better understand the user of African digital financial services (DFS).

The report, A Sense of Inclusion: An Ethnographic Study of the Perceptions and Attitudes to Digital Financial Services in Sub-Saharan Africa, is based on research conducted at the Africa Studies Center Leiden, University of Leiden. The study focuses on four countries of varying degrees of DFS market maturity: Cameroon, Democratic Republic of Congo, Senegal and Zambia. It is a knowledge product of the Partnership for Financial inclusion, a $37.4 million joint initiative of IFC and the Mastercard Foundation, to advance financial inclusion in Sub-Saharan Africa.

Lesley Denyes, IFC’s Program Manager for the Partnership for Financial Inclusion, said, “This research really gives a voice to the users of mobile money and agent banking in Africa. It’s based on observation and personal stories rather than aggregated statistics, and gives us a vivid idea of what lies behind the success of digital financial services on the continent and what the current challenges are to further expand financial inclusion.”

Ruth Dueck-Mbeba, Senior Program Manager at the Mastercard Foundation, said, “We are particularly pleased to see this latest publication from the Partnership for Financial Inclusion, and its focus on clients. The report seeks to understand the underlying barriers to the use of digital financial services, and the drivers that build client trust in those services. With this deeper understanding, we can give clients voice.”

Since digital financial services were first introduced in Sub-Saharan Africa about ten years ago, the continent has taken a lead in the global evolution of a mass market for affordable, accessible and sustainable financial services for low-income people, rural populations and small-scale entrepreneurs in emerging markets. There are now over 277 million registered users on the continent, with about 100 million active accounts, almost 60 percent of the global total (GSMA). In countries such as Kenya and Tanzania, the use of digital financial services has led to a near doubling of the financial inclusion rate.

The report provides an in-depth description of what digital financial inclusion means in relation to social and cultural factors. One of the interesting findings relates to how digital payments interact with extended family structures and financial obligations within social networks. Some DFS users have found, for example, that the immediate accessibility of mobile transactions makes it difficult for them to escape unwanted solicitations for financial aid from distant family members.

“Now, with the development of money transfers, whenever a family member asks for money, you need to make it clear – either you have money or you don’t. You can no longer claim you can’t get it to them because if you say that, the person will answer that you should send it by Wari, Joni-Joni, etc.,” a policeman and DFS service user in Louga, Senegal, told the researchers.

Fiesta Royale Hotel supports Pantang Hospital

December 7, 2017

0

Fiesta Royal Hotel, as part of its Corporate Social Responsibility (CSR) has presented a bounty donation to the Pantang Hospital.

It was a day worth remembering when Management Members and Staff of the Hotel joined inmates of the Pantang Hospital to share good moments with them. The Female and Male Chronic ward especially was full of joy as inmates gathered round the visiting delegation to receive and savor the delicious meals and drinks made available to them.

The hotel presented cash amount and Items including: Bed sheets, Pillows, Pillow cases, Table cloth, Napkins, Bed base cover, Mattress Pad, Scatter cushions, Duvet, Duvet cover, food items, provisions, bags of rice, drinks and water. Additionally, the hotel painted the entire OPD and consulting rooms of the hospital.

Handing over the items, the Ag. General Manager, Mr. Kingsley Addison disclosed the annual donation was a resolve by the hotel to channel its Corporate Social responsibility initiatives towards supporting the health sector. “Every 5^th November is our anniversary and it is this month we give back to society what God has blessed us with and as the Festive season even draws closer we believe putting smiles on the faces of the needy is the way to go”

He commended the Management and Doctors of the facility for taking good care of the inmates and urged them to use the donation for the intended purpose to drive the course of safeguarding the welfare of inmates at the facility.

Throwing more light on the purpose of the visit, Sales and Marketing Manager, Mrs. Yvonne Eyeson hinted the annual benevolence from the hotel is used to usher the festive season which is extended to clients who visit the facility to celebrate Christmas with mouth watering packages and programs. “This year is no exception so I am inviting everyone to join Fiesta Royale Hotel this festive season for a Christmas worth remembering.

Present to receive the Fiesta donation at the hospital’s administration included: Dr. Leveana Gyimah, Acting Director of the Pantang Hospital, Mr. Charles Yaw Adjei, Administrator and Mr. Alex Kissi, Deputy Administrator.

Dr. Leveana Gyimah hoped the donation will foster a long relationship between the hospital and the hotel as a corporate entity whose support is needed in the rehabilitation process of inmates at the facility.

“As the Christmas season is at the corner this gesture reminds us of the gift of Christ to humanity which is the essence of the celebration and we hope that as you interact with the inmates your hearts will be touched to do more to support the vulnerable in society” she said and thanked the hotel for the support.

Betway rolls out ‘Wish list Promo’

December 7, 2017

0

Some of the lucky customers displaying the items they wished for

Ghana’s largest sports betting company Betway Ghana has rolled out a new promotional package to reward both its existing and potential customers as Christmas nears.

The promotion, dubbed ‘Wish List Promo,’ grants loyal customers of Betway their wish by selecting a product from a variety of items including television sets, motorbikes, refrigerators, washing machines, mobile phones, gas cookers among others.

Aside the player’s wish being granted there is also an opportunity for various communities to have interventions made by Betway in the health and developmental sectors

For example, a player can ask for a donation to be made to an orphanage, or donation of hospital equipment to the community clinic or hospital, or for the provision of a water facility among other options.

The Country Manager/Operations Manager of Betway, Magnus Rex Danquah Jnr, at the launch of the promotion in Berekum, reiterated that focus of the Company goes beyond just being profit minded to prioritizing the needs of customers, as well.

He disclosed that the company periodically organizes events like community football matches and other activities to support both players and potential players.

In the quest to develop sports in Ghana, Betway earlier this year embarked on a talent hunt led by Stephen Appiah which aimed at uncovering unsigned football talents in Ghana. Players selected from the Betway talent search are currently in camp with the Ashgold Sporting Club team.

He urged sports betting patrons, especially Betway customers, to watch out for the Betway wish list train in their communities, he also hoped that the exciting packages will add to the excitement of the yuletide.

The promotion which was launched on Tuesday is expected to run from now through to 2018. Lucky customers of Betway who will come across the ‘Betway Wish List Promo Train’ stand the chance to grab some of these exciting giveaways.

The ‘Betway Wish List Promo Train’ will soon be at some selected locations including Elubo, Prestea, Sunyani, Kumasi, Keta and Ho.

The Betway Group is a leading provider of first-class entertainment across sports betting, casino, bingo, and poker.

Launched in 2006, the company operates across a number of regulated online markets and holds licenses in the UK, Malta, Italy, Denmark, Spain, Belgium, Germany, Kenya, Uganda and now Ghana.

Based in Malta and Guernsey, with support from London, Isle of Man, Stockholm and Cape Town, the Betway team comprises over 1,000 people. It is also the official principal sponsor of Premier League football club West Ham United, the UK Premier League Darts and the UK Snooker Championships.

Poor flight connectivity, strict visa rules make tourists avoid Africa

December 7, 2017

0