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‘Deposit insurance must cover mobile money users’

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The regulator of mobile money services, the central bank, has been urged to come up with an urgent policy that offers protection to consumers of mobile financial services in the event of any service provider’s collapse.

Isabelle Barres, VP of the Center for Financial Inclusion and Director of Smart Campaign – speaking to the B&FT on the sidelines of a consumer protection workshop, said it is important that various regulations which border the mobile financial services sector evolve with time.

Although Parliament last year passed the Depository Protection Act, 2016 (Act 931), which seeks to protect the funds of depositors in the event of their financial institution’s collapse, the Act is not explicit as to what benefits await mobile money users in the event of a mobile money operator’s collapse.

According to Ms. Barres, it is not too late for the central bank to initiate steps that will put the needs of consumers first.

“I think that the laws need to evolve as provisions of financial services evolve.  As there are new players entering the market, and financial services no longer just deliver through formal financial institutions but also through financial technology companies, it is important that laws do evolve also to address these new business models.

“For regulations, it is also important to strike the right balance between allowing innovation to take place and regulating and protecting consumers. It’s about finding that sweet-spot, where you can let the market evolve and figure out what works and what doesn’t for consumers before you rush to regulate.

“Yes, there are new issues that are coming up and the attention on consumer protection focus needs to take into an account those additional risks and new mitigation strategies that need to be put in place to address them,” she said.

Rising mobile money users

According to the central bank, the value of all mobile money transactions for last year was GH¢78.5billion – a more-than 120 percent growth compared to the GH¢35.4billion recorded in 2015.

The bank in its latest Payment Systems Statistic report indicated that the number of registered mobile money customers of the four mobile money network operators—MTN, Tigo, Airtel and Vodafone— reached 19,735,098, showing a growth of 50.42 percent over the 2015 figure of 13,120,367.

The total float balance – monies in the wallets of customers – was GH¢1.2billion, indicating a growth of more than 129 percent over the 2015 figure.

Again, the number of active mobile money customers increased by 70.75 percent – from 4.8 million in 2015 to 8.3 million in 2016.

The Smart Campaign – Keeping Clients First

Ms. Barres was speaking at a one-day forum dubbed ‘the Smart Campaign’ that highlights the need to keep clients first in efforts to promote and sustain financial inclusion.

The global campaign, she said, is committed to embedding client protection practices into the institutional culture and operations of the financial inclusion industry.

Protecting clients, she added, is not only the right thing to do; it’s the smart thing to do.

“When microfinance institutions implement the Campaign’s Client Protection Principles into their operations, they build strong, lasting relationships with clients, increase client retention, and reduce financial risk.

“Similarly, by incorporating client protection principles into their investment criteria and due diligence, microfinance investors can build a healthier, more client‐focused industry that will foster a stronger portfolio and ensure healthy returns,” she added.

The one-day event was organised in partnership with the Financial Inclusion Forum (FI Forum Africa) – a network of professionals who provide solutions to promote financial inclusion in Africa.

As the world’s first financial consumer protection standard, the campaign maintains a rigorous certification programme, elevates clients’ voices, and convenes partners to effect change at the national level.

The one-day event held in Accra was attended by representatives from financial technology companies, players in the microfinance industry, and government functionaries as well as those from the central bank among other key stakeholders.

Experts ask gov’t to uphold sanctity of energy contracts

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There is a certain mistrust that characterises NDC-NPP politics in Ghana and which is making the country look, increasingly, like it does not uphold the sanctity of contracts; and experts warn this could give investors the wrong impression.

While contract cancellations have led to judgement debts in the past, with the state losing a lot of money, there is a counter-argument that a new government simply cannot look away when it discovers its predecessor government got contracts wrong.

The NPP government has, for example, said the Ameri Power deal signed under the Mahama administration was over-priced by about US$150million, and is seeking to review it.

The B&FT understands, also, that the US$7billion Sankofa gas deal with Italy’s ENI could be in for review, since the NPP – even while in opposition – made it clear it was against the US$9.8/MMBtu negotiated price.

The Ghana Gas Forum, organised by the Ghana Gas Consortium between November 7 and 8 in Accra, debated the issue of sanctity of contracts at length – with a number of experts arguing it would be very costly for Ghana if it gives investors in the Oil and Gas sector the impression that it does not uphold the sanctity of contracts.

Leading the discussion on the issue was former Trinidadian Energy and Finance Minister Conrad Enill, who asked Ghana’s political leaders to “take energy out of the political equation” and work out a mechanism by which contracts would not suffer when political power changes hands.

“Find a way to take energy out of it, because people are going to suffer if you don’t,” he said.

Conrad Enill, whose presentation focused on how to achieve good leadership and global competitiveness in the gas sector, suggested a standing energy committee at cabinet level – as is the case in his country – considering how important energy is to economic transformation.

Other contributors to the discussion agreed with him on the need for the sanctity of contracts to be upheld, with Dr. Cassandra Martinez-King, a Petroleum Law expert, highlighting the need for “skilled negotiators” to reduce the incidence of contract cancellations.

The sanctity of contracts, she said, is fundamental to the industry, and does have a great effect on investors coming into a country.

CHIEFS: the beauty and the beast

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Chiefs and Chieftaincy. Our traditional rulers. Their power, their history, their role, their challenges. In President Akufo-Addo’s recent speech at the National House of Chiefs, he spoke about modernization, ending discrimination, galamsey and not treating sexual violence as ‘family matters’.

The President told the Chiefs to resist the temptation of poisonous flattery. Instead he advised that they “allow the moral authority of your status to justify your interventions”.

This speech and the recent case of a Chief’s intervention in the case of an alleged child rape create a  moment to do a Chieftaincy inventory. Let’s explore what works and what doesn’t; what is problematic and why; what serves the people and what doesn’t.

Modern government and traditional chieftaincy create a complex governance structure here in Ghana. Chiefs occupy a particular power in contemporary and historical Ghana.

In contemporary times, their influence in the world of politics has led presidential candidates to court them, engage them, address them and confer upon them all manner of promise in order to secure their influence across the regions of Ghana.  That influence is about votes. That is despite Article 76 of the 1992 Constitution which prohibits chiefs from engaging in active partisan politics.  Chiefs hold cultural influence, political sway and symbolic power of national unity. The latter led the 1992 Constitution to forbid politically partisan engagement. Such noble words must contend with the messy, murky world of presidential political campaigning and the pursuit of power.

Neither the campaigning politician nor the Chief adheres to such small matters as Ghana’s Constitution and its directive when it comes to politics. Winning elections means engaging the power holders and the influencers.

Indeed, the Constitution may be firm; the influence of Chiefs in their regions is equally firm.  In Ghana, cultural power overrides legal power. Moral authority is granted by the belief of the people. Chiefs in Ghana carry profound moral authority – even when they are wrong, abusing that power, jeopardizing their district and falling foul of the rule of law. The people’s belief allows for such unsanctioned authority.

So, whatever the law says, the truths are more complicated. Power and influence are seductive beasts that burden vote seekers and taint the beauty of a tradition that seeks to serve a people.

From the contemporary to the historical.

Chieftaincy is an institution.  Pre-colonialism it held executive, legislative and judiciary power. Colonial masters sought to anaesthetize that power in order to rob a people of a culture and turn chiefs into colonizers subjects and colonizers into masters.

It worked. And its legacy lingers.

There are no halcyon days of governance. From Chiefs to Colonialism to Military rule to Modern Multi Party Democracy, the path is full of twists and turns. Power negotiation is always a tricky world to balance, and within this world there are multiple tensions.

Our modern form of governance sometimes means we serve multiple masters that leave entire portions of society  unprotected. What kind of nation building is that?

Chiefs are citizens. As such they are subject to the rule of law, as is every other citizen.

In rural areas across Ghana’s 10 regions, Chiefs are the rule of law. Their moral authority is unquestioned, it ranks higher than law and order and their word is the last on a given matter. Chiefs’ citizenry comes with privileges and unfettered power.

From politics and power to disputes.

The failure to resolve chieftaincy disputes is considered a matter of national security. For me in Ghana, sexual violence is becoming a matter of national security. Individual cases reveal major gaps in investigating such incidences. The latest case in Assin revealed how a Chief can contribute to such gaps.

Chiefs are not a monolith. They can also be inspiration and solution.  Chiefs can be and are beauty.

Chiefs become beasts when they abuse their moral authority, obstruct justice – and in the case of the alleged rape of a child – create a path where alleged pedophiles flourish to harm girls and women. The potential for their power to be abused is absolute and terrifying.

We have a Ministry of Chieftaincy and Religious Affairs.

It has a budget. Its role is the linkage between Government and the Chiefs. What does that mean in modern governance? And how do such linkages manifest?

The Ministry already landed in hot water when news hit the headlines of a planned pilgrimage partially paid for by the Ministry in June this year. They denied this. The allegations and accusations persisted. They explained they were assisting in ensuring a smooth pilgrimage for those Christians who travelled.

They intervened in a process in order to ensure justice – such is the conclusion of the above story.

In the midst of multiple actions in pursuit of justice for a 4 year old alleged rape victim, the silence of the Ministry of Chieftaincy and Religious Affairs was deafening. To date, no public statement has been made regarding the Assin Chief’s alleged interference in a criminal matter.

In the President’s speech to the National House of Chiefs, he urged them not to treat such horrors are ‘family matters’.  That the issue reached the office of the president prompting him to address it, is heartening. But where is the allocated Ministry?

What role does a Minister of Chieftaincy play when a Chief is accused essentially of obstructing justice? If on such a crucial matter the Ministry is silent – then what purpose does it serve? Is it that it is willing to intervene for the purpose of money when it comes to Christians but unwilling to do so when it comes to justice for innocent children?

It is worth highlighting Article 272 of the 1992 Constitutions as regards Chiefs for the purposes of this particular argument.

Article 272 paragraph C says:- Undertake an evaluation of traditional customs and usages with a view to eliminating those customs and usages that are outmoded and socially harmful.

It is under Article 272 paragraph C that the Assin’s chief’s actions require specific scrutiny and a call for engagement by the Ministry for Chieftaincy and Religious Affairs.

Isn’t it socially harmful for girls to be unsafe in their regions due to Chiefs obstruction of justice? Doesn’t this traditional custom of elevating a Chief above the Rule of Law require careful evaluation and specific elimination as treating sexual violence as a ‘family matter’ is both socially harmful, outmoded and dangerously minimalizes a matter of criminality and pedophilia?

What sanction do Chiefs face when their actions threaten the course of justice? What penalty do they suffer if their actions succeed in causing acute distress to those they are sworn to protect? How do you assess moral authority when Chiefs make immoral judgments that threaten the safety of  – not just a 4 year old girl but all the little girls, young women – women in that region?  What happens to the Rule of Law when the Chief is the Rule of Law and he or she is failing to uphold it? What role does the Ministry of Chieftaincy play in such matters?

There are also money matters to consider.

Chiefs receive a monthly allowance from the government. Under this government, those allowances have increased from GhCedis800 to GhCedis1,000. For Queen Mothers it is now GhCedis500, up from GhCedis350.

How do Chiefs’ actions impact this allowance? Under what conditions are such allowances paid? If a Chief is falling foul of their Constitutional mandate, what interventions are available to the Ministry of Chieftaincy or the President?

Ultimately, Chiefs are a part of modern governance. Their power and that of a modern democracy are uneasy bedfellows. There is a politics of chieftaincy. It must evolve to take account of society’s current needs. Like partisan politics, the real power lies with the people.

The Assin child alleged rape case means a Chieftaincy inventory on issues of sexual violence is long overdue.

Honourable Minister of Chieftaincy and Religious Affairs, your silence must end.

Source: Esther Armah

Gov’t causing financial loss to state with failed GHc6bn Energy bond- Minority

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The  Minority in Parliament, has accused the government of causing financial loss to the state with the recent issuance of the Energy Sector Bond.
According to the minority, the below GHc 6 billion yield of the bond is a solid basis for the Finance Minister, Ken Ofori-Atta, to be hauled before the House to explain why investment advice from places such as the IMF among others was ignored

Addressing the press in Parliament, Minority Spokesperson on Finance, Cassiel Ato Forson, said the complex structure of the bond and unrealistic assumptions by the government caused what the Minority called the spectacular failure of the bond.

“The simple point is that, instead of them issuing a bond called plain vanilla, they decided to use this complex structure that has cost the taxpayer some 200 basis points,” Mr. Ato Forson stated.
The 200 basis marks about 2 percent of the GHc 6 billion sought, amounting to about GHc1.2 million, which he noted “can help the government to finance the Free SHS that they are struggling to settle.
The bond is unrated, per a prospectus issued in October, but an independent special purpose vehicle sponsored by Ghana had the bond hovering around a B-stable rating, according to Fitch, among others.
Mr. Ato Forson insisted that, the government could have saved the aforementioned 200 basis points “if they had gone to the financial market on the strength of government of Ghana ratings, rather than the ESLA PLC which is unrated and unknown.”

The bond was issued to offset the legacy debts of the energy sector.

The energy debt is estimated at GHc 10 billion but in all, government accrued some GHc 4.69 billion from the energy bond.

The seven-year component raked in GHc2.4 billion as targeted, at an interest rate of 19 percent.

However, the 10-year bond failed to hit the GHc 3.6 billion mark. It accrued some GHc 2.29 billion at an interest rate of 19.5 percent, meaning, the total amount received was about 22 percent less than the targeted GHc 6 billion.

ESLA was forced to extend the auction by a week over low proceeds.

Microfin Rural Bank posts impressive gains

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The high-table with management and dignitaries that graced the occasion

Microfin Rural Bank (MRB) at Gomoa Pomadze in the Central Region has posted its first profit of GH₵231,419 after barely four years in operation, on the back of sterling growth in other key performance area.

The profit figure represents a 62 percent growth over previous year’s amount, with interest income, total net income, and total operating expenses recording 53 percent, 48 percent and 47 percent respectively.

The bank’s total assets increased from GH₵4,764,431 in 2015 to GH₵6,607,819 – recording a 39 percent growth, while net short-term investments also surged by an impressive 108 percent from GH₵754,288 in the previous year to GH₵1,569,098 in the period under review.

An aggressive mobilisation drive saw the bank raise its total deposits by 48 percent to GH₵5,138,875 in the year under review, compared to the GH₵3,471,673 that was recorded in 2015.

Loans and advances to borrowers by the bank jumped from the 2015 figure of GH₵2,985,753 to GH₵3,507,835 in the 2016 business year, representing a rise of 27 percent; with a minimal 2 percent retained under non-performing loans (NPLs) due to harsh economic challenges that affected recoveries.

About 54 percent of the total gross loan portfolio of GH₵3,594,171—which translates to GH₵1,951,526—was granted to over 7,500 clients in micro-enterprises (group loans) comprising rural women in petty trading and agriculture through the bank’s microfinance scheme.

Board chairman of the bank, Victor Antwi, announced the impressive achievement at the fourth annual general meeting of the bank held at the Perez University College premises in Gomoa Pomadze.

Microfin Rural Bank’s stated capital now stands at GH₵800,859, an 11 percent rise over the 2015 figure of GH₵719,488; and with amount slightly behind the GH₵1,000,000 requirement from the central bank, the board chairman entreated shareholders to increase their investment to enable the bank meet the December 2016 deadline.

“The bank has posted profits four years into its operations; I believe this should encourage existing shareholders to increase their shares and enjoy the full benefit of their investment in subsequent years,” he noted.

Achievements, innovations and outlook

Barely four years into its operations, Microfin Rural Bank is currently the best rural bank in the Central Region and the 12th-best rural bank out of the 142 Rural and Community Banks (RCBs) in the country, as per the latest ARB Apex Bank rankings. In terms of ratings, the bank has been upgraded from ‘satisfactory’ to ‘strong’.

The bank is currently piloting a cocoa farmers’ loan product dubbed ‘AKUSIKA’ to members of linked savings groups in cocoa farming communities at Assin and Agona Abodom. Beneficiaries of this product will have access to agric inputs, working capital and related agro extension services.

It is also participating in piloting the ARB Apex Bank’s U-Connect Platform, which allows clients of rural banks to transfer money from one account to another in the comfort of their homes.

Commenting on the gains, Mr. Antwi said management has not rested on its laurels but remains committed toward improving its performance to deliver more value for clients and shareholders.

Looking ahead, he said, the bank will leverage technology to improve service delivery while achieving corporate objectives in a sustainable manner.

“The bank will continue to support the ARB Apex Bank’s determination to provide relevant technologies and platforms to make RCBs more competitive and keep pace with advancements in the banking industry,” he added.

Collaborations to improve lives and create rural jobs

The bank, as part of efforts to deepen financial inclusion, collaborated with funding organisations and agencies to support agriculture and other related value chain activities.

The signing of a memorandum of understanding (MoU) with the Rural Enterprises Programme (REP) enabled it to disburse GH₵254,943 to 360 farmers and others within the agric value chain. Within the year under review, three cassava, pineapple and orange agro-processors were financed.

MRB is also working with the SNV Netherlands Development Organisation to provide improved fish-smoking and gari stoves to clients around Apam, Senya, Winneba, Bontrase and its environs through the bank’s microfinance scheme to help reduce the health hazards of smoke on the beneficiaries.

The bank was selected under the USAID Financing Ghanaian Agriculture Project (FinGAP) incentive grants award system to facilitate financing of agribusiness investment opportunities within the maize, rice and soy value chains.

It is also in collaboration with Interpay Africa, piloting a digital payments system through the mobile phone platform for its savings group and susu clients in the bid to enhance outreach. The project will be rolled out in 2018, depending on the pilot phase’s success.

According to Mr. Antwi, these interventions are in line with the bank’s focus on roping-in the unbanked rural population, creating more employment opportunities, and improving the lives of people as well communities within the bank’s operational area.

The ‘Movember’ mystery of men’s health

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November or movember, you say? For a vast number of the populace movember’s significance in the calendar is still a mystery. For those mystified individuals, movember came to life 14 years ago in 2003, created by a few friends over a beer in Melbourne, Australia.

You might think, how sloshed were they?! The truth of the matter is they were sober enough to formulate a movement that would raise awareness on men’s health globally.

Movember has garnered massive attention since its birth. Its primary purpose is to grow awareness on prostate cancer, testicular cancer and male depression leading to suicide; the lesser spoken about issues at the time, and to a great extent even today!

It has encouraged men far and beyond to be cautious of their health, get annual checkups, alert themselves of family history of cancer, to not be apprehensive on speaking about mental distress, to follow a healthy regime, and thus stay in the pink of health.

To engage more people, raise funds and make this idea fun along the way, men start the month of November with a cleanly-shaven face then grow and groom a moustache! There’re some who go all out and grow beards, too. It’s unquestionably a glorious time for those who love their facial hair, and like flaunting it as well. Since women dislike being left out, they also show their support for the men in their life to be hale and hearty by being physically active or by hosting a fundraiser.

Prostate Cancer

Cancer is an enigma that scientists are trying hard to solve. Since its origin is still fuzzy, preventable actions are limited. All we know is that a few cells in our body go lunatic and start dividing abnormally. Prostate cancer occurs only in men, since the prostate is a gland found only in the male reproductive system. It is more common in the elderly, over 50.

Among the categories of cancer, unexpectedly prostate cancer is the second-leading cause of death in men after skin cancer. We have several glands in our body producing various substances like hormones for competent bodily activities. The prostate is a walnut-shaped gland placed below the bladder, hence the name prostate. It churns out a fluid that carries semen and encircles the urethra (the tube men pee/ejaculate through).

Prostate cancer can be localised or advanced, and can be easily treatable when identified at a localised stage. The horror bells go off when it advances to other organs. Prostate cancer deceitfully shows the symptoms when it is in the advanced stages. For that reason, one must be watchful of one’s own body and get regular medical examinations done to protect oneself. However, one shouldn’t succumb to paranoia, as there’s a fine line between being watchful and being paranoid -and stress hormones have never done any good!

Signs to look out for with prostate cancer are: trouble urinating or ejaculating, frequent urination, blood in semen, bone-pain, uneasiness in pelvic area, trouble in keeping erection, weak flow of urine or trickling urine once you’re done. A few of these indicators may also arise due to some other illnesses like diabetes, arthritis or a heart problem. Nonetheless, it’s best to get yourself examined to know the nature of the disease you’re dealing with.

Factors contributing to prostate cancer are: old age, obesity, family history of prostate cancer. Astonishingly, according to the Mayo Clinic, those with a family history of breast cancer are at a higher risk of prostate cancer. Certain tests that can help in uncovering prostate cancer are: digital rectal exam, prostate-specific antigen test, trans-rectal ultrasound, prostate biopsy and so on.

Treatments involve: radiation therapy, hormone therapy, removal of prostate gland, freezing prostate tissue, chemotherapy and immunotherapy. Alternative actions include: art therapy, dance therapy, exercise, music therapy, support groups and meditation. Fortunately, men whose prostate cancer is detected at an early stage may not need any treatment, except for regular checkups and continuous scrutiny.

Recently, there’s been success stories of men being cured of prostate cancer – wherein the tumour was deprived of testosterone, because cancer fuels itself on testosterone. Therefore, shortage of testosterone weakened the effect of cancer. However, in some prostate cancer patients an overdose of testosterone showed the same results.

Testicular Cancer

Now, another cancer that imposes itself to men’s genitalia – or as we may refer to them, sex organs – is testicular cancer. The prostate gland ships and nurtures the semen, but testes are the builders of that semen. The troubling reality is that younger men aged 15-35 are more prone to it. Mercifully, it’s not a complete fiasco because by the grace of scientists it is highly curable by chemotherapy!

Testicular cancer usually affects one testicle and spares the other. Its warning signs are: an inflated testicle or a lump in it, heaviness in scrotum, nagging pain in groin/abdomen, sudden collection of fluid in scrotum, backache, and enlargement/tenderness of breasts. Young males with a family history of testicular cancer, abnormal testicle development or an undescended testicle are at higher risk.

Tests that’ll help you identify this malaise are: blood tests, ultrasound etc. Removal of a testicle and CT-scan, including treatments like radiation therapy, surgery or chemotherapy, can be very helpful. The best possible way to fend-off testicular cancer is by inspecting your scrotum/testicles for any swellings/lumps.

Male Depression

The last goal of Movember is to propagate awareness on male depression and suicide prevention. It’s a hushed pandemic floating around that today’s modern yet conservative society is hesitant to talk about unabashedly. There’s a certain reluctance to vocalise such issues that are taking away so many lives. Depressed men are dying to be heard! Our social order is such that we’re becoming modern in appearance but not in thought! Why teach our boys to be heroic all the time? Why not instil the thought that tears are the strongest form of showing emotion? It is perfectly fine to feel or be sad/disheartened by failure.

When they go through such a spectrum of emotions, they shouldn’t take shelter in loneliness. It should not be a stigma or something to be frowned upon. This chauvinism is inculcated by us and needs to be eradicated to save the lives of innumerable men. There’s no oddity in seeking counselling services. Likewise, there’s nothing more honorable and courageous than confronting your deepest emotions instead of shying away from them.

We need to become more empathetic and lend our ears to hear what the depressed are not saying. The bitter truth is that betrayal doesn’t come from your enemies. Similarly, when and how your own body will turn against you can’t be foreseen. It can however definitely be kept at bay – by getting acquainted with certain facts, nurturing, caring and not giving up for as long as you can. Nevertheless, science will always have a fistful of unanswered questions.

The writer is an Entrepreneurial Biotechnologist, and passionate about creating awareness among the masses and steering a tangible change in the healthcare delivery systems.

Email: [email protected]

Facebook page: The Health Plug

GRA charged to leverage on technology to increase tax

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The Ghana Revenue Authority (GRA) has been charged to take advantage of the numerous opportunities afforded by technology to increase the tax to GDP ratio, and thereby help reduce the country’s dependency on aid and donor support.

“The country’s tax to Gross Domestic Products (GDP) ratio, which is quite alarming, hovers around 16% and is much lower than it should be – and that poses a challenge to the economy. Ideally, the economy should be looking at a tax to GDP ratio of about 22% to 25%.”

Professor George Gyan-Baffour, Minister of Planning, said this on behalf of President Nana Addo Dankwa Akufo-Addo at the 38th annual Commonwealth Association of Tax Administrators (CATA) Technical Conference, hosted by the GRA in Accra.

The ongoing five-day CATA conference, themed ‘Leveraging Technology to enhance Revenue Administration’, is meant to engage fruitful discussions and exchange best experiences for embracing technological innovation in the day to day operation of the revenue administration. It is also an opportune time for tax administrators to catch up with how best information technology may be utilised to transform the various functions of respective revenue administrations.

Prof. Gyan-Baffour explained that due to the inherent advantages associated with leveraging technology to enhance the performance of tax administrations, government will continue to give the needed support and encouragement to GRA to adopt the necessary technological innovations that enable it to deliver the goods.

He added that government recognises the challenges GRA faces in its attempt at casting the tax net wider to embrace as many operators as possible, especially from the informal sector.

As part of the solution, he indicated that government has already leveraged technology to introduce a digital property-addressing system, and will soon introduce a national identity card system.

“We believe that these, among other measures, will help formalise the economy and help the tax administration body to easily locate businesses and potential taxpayers for registration and delivery of assessments.”

He said government abolished a number of taxes while others were reduced in the 2017 budget statement, to give breathing space to businesses as a way of encouraging productive activities.

This strategy was aimed at moving away from the imposition of numerous taxes so as to encourage production and release the business sector’s energies.

“It is my belief that businesses should first be given the opportunity to grow before governments take their fair share of taxes,” Prof. Gyan-Baffour said.

Finance Minister Ken Ofori-Atta, admitting that the country’s current tax to GDP ratio is much lower than it should be, confirmed that the situation poses a serious challenge to the country’s economy.

Mr. Ofori-Atta said: “We are in the middle of our budget season, and the budget will be read on November 15; the challenges are obvious to us in terms of where we are as a nation. We need to find new ways of generating revenue, particularly since government is losing so much money through the abolishment of a number of taxes.

“As part of the modernisation and reform process, government announced a series of reforms in our 2017 budget statement.

“Arising from these reforms, some taxes – actually 13 or 14 taxes – were abolished while others were reduced significantly…But to continue with this type of reform of reducing taxes there is a need for us to find effective ways of raising revenue – mobilising through technology,” he said.

He indicated that the relationship between technology and tax administration will help Commonwealth tax administrators enhance revenue administration, and thereby improve revenue mobilisation.

Mr. Emmanuel Kofi Nti, Commissioner-General of the GRA, urged current tax administrators in the Commonwealth to see it as a duty to pass on to future generations a more robust, functional, progressive and result-driven organisation.

He indicated that CATA’s mission of helping member-countries to develop effective tax administrations to promote sustainable development and good governance is very much in sync with the modernisation efforts of GRA.

“GRA has since its establishment in 2009 embarked on a series of tax, administrative, structural, procedural and process reforms aimed at modernising the Ghanaian tax administration and improving service delivery to taxpayers,” he said.

Chairman of CATA, Mr. Sudhamo Lal said: “The vast majority of people are doing their personal and business transactions on-line. The new generation of taxpayers no longer considers paper-based channels as the most effective and efficient way of communicating and transacting with tax administrations.

“Taxpayers are always in search of new services, and if tax administrations are not able to meet their expectations it is feared that we may end up with tax compliance issues.

“By meeting taxpayers’ expectations through technologically-accustomed officers and simplifying their service delivery experience, then these taxpayers should find it easier to comply.

“These new services can take various forms such as e-filling of tax returns, e-registration, e-payment, e-objection or automated telephony systems amongst others,” Mr. Lal remarked.

By Ekow Essabra-Mensah l thebftonline.com l Ghana

Draft report on 70% contracts for locals ready

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Trade and Industry Minister, Alan Kyerematen

A draft report that will see 70 percent of government of Ghana-funded projects go to local contractors has been completed, and is expected to be submitted to Cabinet and Parliament for approval soon.

The new policy, government believes, will help grow local businesses.

It is aimed at empowering indigenous contractors, and will also reserve a 30% quota of all contracts for women.

Trade and Industry Minister Alan Kyerematen – who appeared before Parliament to answer questions – said the draft report has been finalised, and outlined a number of steps government is taking to push through local consumption of goods and services.

“The ministry has completed a draft report to support a new policy on Ghanaian participation in the award of contracts by national and local governments. The objective, among other things, is to ensure that 70 percent of all procurement to be financed from public funds should be sourced from locally produced goods and services.

“The ministry will be submitting the relevant legislation to Cabinet and Parliament for approval, which will significantly enhance the effective promotion and consumption of locally produced goods and services,” he said.

He also indicated that the ministry is taking decisive steps to enhance the country’s capacity to deal with dumping as a means of ensuring fair competition for locally produced goods.

In pursuit of this, five people have been appointed by the President to serve as Commissioners for the Ghana International Trade Commission, which will soon be formally inaugurated.

“All these measures have been put in place to ensure that locally produced goods are able to compete in our markets, and that government procurement is used strategically to promote private sector development in Ghana.”

By Eugene Davis l thebftonline.com l Ghana

KMA decongests Kumasi ahead of the late Asantehemaa’s funeral

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Scores of petty traders and hawkers operating at some unauthorised points in and around the major trading centres of the Kumasi Metropolis have been moved to other satellite markets in the city, ahead of the yuletide and the Asantehemaa’s funeral.

The development has significantly eased commuting and vehicular movement in and around the city’s trading centres like Kejetia, Central Market and other parts of the commercial district of Adum.

Although this is not the first time such adecongestion exercise is being carried out, some commuters were hopeful that the exercise will not be a charade since the traders are likely to return some few days after the exercise.

But according to the Kumasi Metropolitan Assembly (KMA), the relocation exercise is being carried out in collaboration with the Ashanti Regional Coordinating Council (ARCC) for a number of reasons – including paving the way for some other works by the contractors working on redevelopment of the Kejetia Market.

The KMA also noted that it forms part of the plans to ensure that the city centre and other major trading centres are freed for easy movement of vehicles and shoppers – particularly as Christmas approaches.

And with the announcement of funeral rites for the late Asantehemaa, Nana Afia Serwaa Kobi Ampem II, by the Manhyia Palace, the development will also help to remove the unending traffic and congestion in some of these areas of the city ahead of the final funeral rites.

This is happening some days after the Ashanti Regional Minister, Simon Osei Mensah, directed some petty traders and hawkers trading at Suame and Komfo Anokye Teaching Hospital roundabouts to relocate to some designated satellite markets by November 6, 2017, or be forcibly evicted.

The minister noted that the trading activities around these two major road intersections pose a serious security concern, and are also a danger to human lives – especially the traders, hawkers and other road users.

The Suame roundabout, in particular, has recorded a number of fatal accidents over the years due to vehicular and human activities around the area.

Mr. Osei Mensah observed that vehicles with failed brakes or faulty parts could run into the traders and hawkers during their trade.

Also, trading activities at these places often leave behind a huge pile of refuse; making it an eyesore to users of these roads.

The affected traders have been relocated to Adumenu, Abinkyi and other satellite markets in the Metropolis.

By Kizito Cudjoe, Kumasi l thebftonline.com l Ghana

EU lifts ban on 5 plants exports

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As from 1st January 2018, Ghanaian farmers will be able to resume exports of all plant commodities to the European Union (EU) market.

This follows the European Commission’s decision to lift the current ban on the exports of five plant commodities from Ghana to the European Union (EU) market on 31st October 2017.

The five plants (chilli pepper, bottle gourds, luffa gourds, bitter gourds and eggplants) will from 1 January 2018, have duty-free and quota-free access to the EU market like any other product from Ghana.  The 5 commodities will have to fulfil EU phytosanitary legislation to ensure freedom from quarantine pests.

This decision follows an audit undertaken from 12 to 21 September 2017 by the Directorate-General for Health and Food Safety of the European Commission, and evolution of the number of import interceptions with quarantine pests notified by member-states for commodities not subject to the ban.

Since beginning of the ban in October 2015, the Ghanaian authorities have taken significant corrective measures to improve the inspection and control system for plant health at exit points – in particular at Kotoka International Airport, said an EU Delegation statement issued in Accra yesterday

“The European Commission congratulates Ghana for reaching this important milestone, and encourages Ghana to consolidate the upgraded system and continue further improvements in the phytosanitary certification system to obtain full compliance with the EU phytosanitary requirements.”

This outcome has been possible thanks to combined efforts of the Plant Protection and Regulatory Service Department (PPRSD) and coordinated support from several development partners – including the European Union through the Trade Related Assistance and Quality Enabling programme (TRAQUE); the German International Cooperation (GIZ); the Netherlands Embassy through the GhanaVeg project; and USAID. This harmonised approach has been instrumental in reaching the objective of complying with EU requirements this year.

The resumption of exports for all plant commodities to the EU market will enable Ghana to fully benefit from the 100% preferential access to the EU market, provided by the Stepping Stone Economic Partnership Agreement that entered into force on 15 December 2016.

Background

From 2012 to 2015, the number of intercepted plants from Ghana at the EU borders due to the presence of harmful organisms had increased significantly, leading Ghana to face the highest number of interceptions globally in 2015.

On 13 October 2015, the European Commission decided to prohibit the introduction of 5 plant commodities from Ghana into the EU market until end of December 2016. The ban was purposely restricted to those commodities that have had the highest number of interceptions. The five concerned plants were chilli pepper, bottle gourds, luffa gourds, bitter gourds and eggplants. Following an audit undertaken in September 2015, a decision was taken by the European Commission to renew the ban by one year until December 2017.

Over the past years, the Plant protection and Regulatory Service Department (PPRSD) of the Ministry of Food and Agriculture has received support from several development partners: notably to improve the inspection and control system at the airport, and to improve traceability as well as develop and implement the Ghana Green Label scheme. Coordination of the received support has been successfully done through the SPS Task Force set up and chaired by the Ministry of Food and Agriculture.

thebftonline.com l Ghana

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