Kempinski Hotel partners maiden “Hungarian Cultural Week”
The Hungarian Embassy in Ghana is organising its maiden “Hungarian Cultural Week” at the Kempinski Gold Coast City Hotel in Accra, as part of efforts to promote the country’s rich traditions and culture.
The week-long celebration will be marked along three key pillars of arts and cultural exhibition; a Ghana-Hungary musical concert to be headlined by Sena Dagadu, a renowned musician with both Ghanaian and Hungarian descent; and business-to-business engagement between Hungarians and their Ghanaian business counterparts.
Hungarian Ambassador to Ghana, András Szabós, told the B&FT in an interview that the event also seeks to announce the reopening of Hungarian diplomatic missions in Ghana, which has been closed for over 30 years.
He said: “Through this celebration, we want to show to the Ghanaian community that the Hungarian diplomatic mission is back with its accompanying foreign policies.
As part of the event, we will be hosting policymakers, the business community and friends of Hungary to Hungarian delicacies to be prepared by a top chef from Hungary. For a whole week, the public will have the chance to taste Hungarian cuisine, arts and culture.”
Mr. Szabos also indicated that fact sheets and short movies about Hungarian culture, tourism and business opportunities will be showcased during the week-long celebration to attract the segment of the public who are interested in exploring Hungary.
The Hungarian Cultural Week celebrations will include the Ghana-Hungary Business Forum that will pool dozens of Hungarians drawn from various business sectors of agriculture, health, creative industry and IT to interact with counterparts in Ghana.
“I hope this will boost the economic relations between the two countries, apart from those that we have already started working on in different sectors,” Mr. Szabos said of the business forum.
General Manager of Kempinski Gold Coast City Hotel, Manish Nambiar, told the B&FT in an interview on the partnership: “We always belief in adding value in one way or the other to our customers and loyal clients; and in achieving that, we are working together with various embassies to create a platform where people can come and appreciate the arts and culture of these countries.”
He added: “Hungary is a country that has tremendous culture which has not been well exposed and we anticipate that the one-week celebrations will provide an interesting avenue for people to come and experience.”
According to Mr. Nambiar, tourism goes beyond beaches and tourist sites and for that matter; the hotel, as an industry player, will leverage its up-class products and services to market Ghana as a preferred tourism destination.
“Ghana has tremendous potential as far as tourism is concerned; we are just at the tip of the iceberg considering the coastline and rich culture; there is however the need for destination marketing.
The domino effect of developing the hospitality sector can be felt at the grassroots level of the economy; as a sector, what we do reflects in different levels and penetrates all aspects of society,” he added.
Kempinski is one of the oldest hospitality brands in the world with a prestigious legacy that spans over 120 years. In Ghana, the five-star facility has been operating for less than two years and boasts a combined workforce of close to 800 directly and indirectly.
Mr. Nambiar indicated: “Kempinski Gold Coast Accra is a people-oriented company and this is what drives us towards excellence; currently, we are hiring directly over 400 employees and 350 indirect employees offering related services.
We are relatively new in Ghana, having been operating for a little over a year; but within this period, we have demonstrated the level of service and standards that we are bringing to the hospitality industry; our products are by far the most superior in this part of the world.”
Ghana Cedi: from volatility to resilience & convertibility:
Optimal Reserve Ratio (Gold Reserve / Foreign Reserve)-Targeting (30%) [+/-3%], in tandem with Inflation-Targeting
The present Government’s Cedi stability policies are recycled from 2000 – 2008 (Pre – Global Financial Crisis), and inappropriate for today’s global monetary environment (Quantitative Easing dilutes Ghana’s Cash Reserves), and some negative nominal interest rates by major Central Banks (Japan), and the ECB is at zero interest rate, limit the pool of investable assets.
The current Government is calling for a Cedi / Foreign Reserve (primarily Cash Reserve) equilibrium. The $2.25 Billion “Foreign” Cedi Bond, moved Ghana’s ORR from 7.7%, to below 5%. At this level, it is not robust, and is susceptible to volatility. Already, the Cedi has moved from 3.90 to 4.20 / $1.00, as the liquidity from the foreign cash injection dissipates.
If Ghana experiences any shocks now — like the budgeted 30% increase in Revenues don’t materialize, and we’re still paying for the 110 Ministers et al, the Cedi will face material headwinds. Also, for the unprecedented Single Financier Risk with 95% of the bond held by 1 foreign private investor — a bond that was well received and lots of interested investors.
Ghana should aim to achieve Cedi Resilience (essential for Clean Industrialized Growth) — Lower Inflation, Interest Rates and Unemployment Rate; Exchange Rate Stability and Convertibility by:
- using the ECB Optimal Reserve Ratio (“ORR”) (we should take an average of the past 3 years)
(+/- 3%) as a de facto peg ORR (This follows the role of “permanent capital” in optimal capital structure theory, and usually practice. Further, gold is similar to debt (short-term) in its risk / return profile. Most importantly, gold is a traditional hedge against inflation, therefore Ghana’s ORR needs to be higher than the ECB’s to dampen Inflation further from the current 12.8% to below the current target — (8%) [+/-2%]. The additional 300 basis points spread to the ECB average, is due to the Inflation differential between Ghana and the ECB — 1.73%. The ECB aims at Inflation rates of below, but close to, 2% over the medium term. For Ghana, this will lead to significantly Lower Inflation and Interest Rates; a material increase in both private sector and public sector investments; double-digit GDP growth rates; and
- An optimal Gold Reserve storage architecture proposal could be 76% is stored in Ghana – similar to “permanent capital;” with the remainder 24% split among WAEMU (CFA), United States, United Kingdom, China, Switzerland and Mauritius, for Safety, Liquidity and Convertibility purposes.
WAEMU (CFA) — [5%]. 50% of the Foreign Reserves of WAEMU (CFA) are deposited with the French Treasury (indirectly the ECB), in return for the guarantee of the CFA Convertibility. The Cedi’s Convertibility will be materially enhanced by this storage arrangement, as well as the Safety of the Gold Reserve. Further, through March, year on year Inflation in the CFA zone was 0.8%.
[16%] of Ghana’s gold will be split proportionally between the foreign currency markets in New York, London, HK, Zurich, where gold is traded — enhancing the Cedi’s Liquidity.
Mauritius — [3%] is considered because: (i) with the recent signing of a double taxation treaty with Ghana, greater investment flows are expected through Mauritius; (ii) traditionally, Mauritius has played a role as the offshore financial center for Africa; and (iii) security and logistical advantages — boosting Ghana’s Trade capabilities.
Effectively, we have created the same Monetary Policy conditions (Lower Inflation and Interest Rates; Currency Stability, Resilience and Convertibility) that have generated enhanced macroeconomic stability in WAEMU (CFA) — (Narrower Fiscal Deficits and Current Account Balances), in tandem with optimizing Ghana’s competitiveness through utilizing a best practice storage architecture.
By implementing an ORR-Targeting framework in tandem with Inflation-Targeting, the Cedi’s Resilience, and Exchange Rate Stability and Convertibility will be optimized.
Coupled with a Clean Industrialized Growth fiscal policy, Ghana can achieve and sustain GDP growth rates of 10%+.
Countries/Central Banks that have successfully implemented or are implementing this ORRTargeting strategy include:
- ECB + Eurozone Central Banks (Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy Latvia, Lithuania, Luxembourg, Malta, The Netherlands, Portugal, Slovakia, Slovenia, Spain, Bulgaria, Croatia, Denmark, Poland and Romania).
- WAEMU (Benin, Burkina Faso, Cote d’Ivoire, Guinea-Bissau, Mali, Niger, Senegal & Togo); and
- Turkey, Sri Lanka and Lebanon; (iv) China and Russia.
Sources: Bank of Ghana, Government of Ghana, ECB, WAEMU, World Bank, IMF, World Gold Council/
The writer is a financial strategist with 25 years of global finance experience, has worked with Ark Partners, IFC/World Bank and Norwest Bank. A previous article from the writer can be found in the Tuesday, April 18, 2017 edition of this publication:
http://thebftonline.com/features/opinions/24040/a–best–practice–gold–reserve–proposal–forghana.html
BoG swerves own subsidiary in mobile money deal
Enquiries made by the B&FT have established that the Ghana Interbank Payment and Settlement Systems (GhIPSS), can handle the intermediary role in across-network mobile money transactions, a multi-million-dollar job the central bank has outsourced to a private company.
An insider source told the B&FT that what GhIPSS, a wholly owned subsidiary of the central bank, is doing by linking all banks via switch is similar to the interoperability system the central bank wants to introduce in the mobile money sector.
GhIPSS was incorporated in May 2007 “with a mandate to implement and manage interoperable payment system infrastructure for banks and non-bank financial institutions in Ghana.”
Part of its role, for example, involves electronic clearing of cheques and the processing and settlement of bulk debit and credit transfers between banks.
The source said the current payment systems infrastructure deployed by GhIPSS to interconnect the banks could also be used to assist mobile money transactions across networks.
“The same infrastructure we use to interconnect the banks can be utilised to connect the telcos to provide the interoperability service. Indeed, GhIPPS is not far from implementing such a switch,” the source added.
Although an official of the company in question, Sibton Switch, confirmed to the B&FT that they are “working” on a project with the central bank, the person declined to give any further information about the deal.
The telecom companies have, on their part, given indication they do not need an intermediary for across-network transactions, given its extra cost implications.
Checks by the B&FT show, also, that the banks, which are now instrumental in the mobile money business, are reluctant to connect to the newly developed switch, especially when they are already connected to GhIPSS.
The central bank has been stonewalling following attempts by the B&FT to find out why it decided to outsource the mobile money interoperability job when its own subsidiary is said to have the capacity to handle same.
The Head of the Payment Systems Department at BoG, Dr Settor Amediku, declined a request by the B&FT to speak on the issue whereas the Communications Department pleaded it be given time to respond.
Telcos’ objection
Last week, the B&FT sighted a letter written by the Ghana Chamber of Telecommunications to the central bank, which complained that, “the current pricing model being proposed, especially with respect to the revenue share, is not in alignment with international standards or benchmarks.
Apart from raising issues about the cost of the project, the Chamber said the central bank’s project did not have clearly defined scope regarding exactly what the switch would do.
The letter, dated January 9, 2017, which follows a meeting between the central bank, mobile money operators and the banks, said: “It was evident from the meeting that the project scope was still not clear even though stakeholders are being pushed towards implementation.
Our understanding from the start was that the project was to facilitate interoperability of payment systems in Ghana, including Banks and GhIPSS, but the current engagements have been restricted to electronic money issuers (EMIS) [mobile money operators] only, without clear understanding of when and how the others, especially the banks, will participate.
We are reliably informed that the banks, for instance, have still not committed to the project, raising a lot of doubts about their participation,” the letter, signed by CEO of the chamber, Kwaku Sakyi-Addo, said, demanding an urgent meeting with the central bank.
According to data from the central bank, from January to September last year, there were more than 368 million individual mobile money transactions, which amounted to over GH¢51.4 billion in value – a more than 115 percent year-on-year increase.
Best Western Premier Hotel hosts key business partners
Four-star hospitality facility, Best Western Premier Hotel, has organised a cocktail party for their key business partners as part of efforts to forge a lasting relations with them.
The “Reservers Cocktail” event was also the hotel’s way of updating reservers about new innovations that have been deployed by management to boost the experience of visitors who lodge at the facility.
Sales and Marketing Manager of the hotel, Elliot Nortey, told the B&FT in an interview: “This is an annual event to appreciate our cherished partners, specifically reservers, who keep bring business to us.
In the hospitality business, we spend a lot of time serving people but at the same time we have to look back and find a way of appreciating the people who keep us in business.”
The cocktail event also provided an opportunity for management to inform reservers about current innovations and promotional packages that have been deployed the facility to boost the experience of visitors who lodge at the hotel as the Valentine’s Day celebration draws closer.
Mr. Nortey added: “At Best Western Premier Hotel, we strive to provide nothing but the best; we will continue to ensure superior excellence which is one of our core values.
Going forward, customers should expect that standard of a four-star hotel that is gearing towards attaining a five-star status.
We believe in the leadership and expertise of our staff to ensure exceptional ambience to anyone who comes into contact with our facility by providing excellent room service, cuisine and general hospitality.”
Chief Executive Officer of Best Western Premier, Zibrim Yamusah, commended the reservers for sustaining business relations with the facility over the years.
“This cocktail event is activity is unique because it creates an avenue for management to engage our reservers and interact with them on the kind of services that we provided to them throughout the year,” he told the B&FT.
Mr. Yamusah said the hotel in the quest to offer seamless customer service delivery has undertaken a number of innovations
He said: “Over the last year, we have opened the Mma Zara Restaurant, increased broadband coverage to 25 megabytes to ensure superior best internet experience, and also change our Television systems to meet modern demand. We will continue to improve on our services as a leading player in the hospitality landscape.”
Best Western Premier named ‘Four-Star Hotel of the Year’
Best Western Premier Hotel has been adjudged the best four-star hotel in the country by the Ghana Tourism Authority at the 10th Ghana Tourism Awards held in Accra.
The sprawling hospitality facility beat stiff competition to scoop the coveted award on the back of winning the award for the same category at the regional level.
The hotel was recognised at both the regional and national level for its unequalled maintenance of high standards and impeccable services that offers superior delight and convenience to clients and guests.
The citation that accompanied the national award read, “Best Western Premier Hotel has exceptional and well-appointed guest facilities, professional customer service by warm and welcoming staff and a strict maintenance regime.
“The hotel’s famous corporate social responsibility activities for the vulnerable in society all add up to make Best Western Hotel a facility worth experiencing.”
Chief Executive Officer of the hotel, Zibrim Yamusah, commenting on the two awards to the B&FT, said the feat was a recognisition of its top-level service delivery and that the success was attributable to the hotel’s management team and well-groomed workforce.
He said the awards will stir management to strive to exceed the expectations of guest as it will continue to improve its services from the front desk to rooms and cuisine.
“Winning the two awards means a lot to us, especially coming from the regulators; they are saying that we have done a good job and we are more than happy.
“Also, considering that Best Western is licensing a few more hotels, picking these awards is good for the image of the brand.
“Going forward, we will continue to improve our services; if you achieve success, you want to go higher. We will strive to better to win more accolades,” he said.
Mr. Yamusah applauded sector regulators on plans by the Tourism Ministry to upgrade the current Hotel Catering and Tourism Training Institute (HOTCATT) into a fully-fledged national tourism training academy as it will provide competent personnel to help grow the hospitality industry.
“There is the urgent need for service orientation and practical experience to develop and grow this sector and this is where the Academy comes handy because it will raise standards.
“People have money to invest in hospitality facilities but because we don’t have the matching expertise most these facilities are forced to collapse.”
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