Ghana - Afrikan Heroes

Ghana Will Not Join the 5G Internet Soon, Says Telecoms Chamber

November 28, 2019

Ghanaians who reacted to the news of Nigeria’s test run of the 5G internet network great expectations that their country may follow suit are in for a shocker as the country’s chamber of telecommunications said they will have to wait a bit longer as such venture requires huge investment. Speaking on the development, the CEO of the telecoms chamber Ken Ashigbe said Ghana will have to put in more to experience the superfast internet service.

CEO of the telecoms chamber Ken Ashigbe — Ken Ashigbe, CEO of the telecoms chamber

The CEO said that it will take a little while to have 5G in Ghana because the country will need to move the 4G network to about 80% before moving to 5G. At present, Ghana has just 6% investment in 4G, and moving to 5G requires a lot and so it might take a little more time, he added.

He also noted: “The valuation of spectrum should be based on market conditions. We pray that government will price the spectrum such that it can be purchased easily. We should be able to follow some countries who do not sell the spectrum too high. It is sold such that government does not lose in selling it as well. We need to definitely look at the price of spectrum”.

5G is the fifth generation of cellular network technology. 5G can support up to a million devices per square kilometer, while 4G supports only up to 100,000 devices per square kilometer. The top countries with 5G include South Korea, the United Kingdom, Germany, and the United States. Swedish telecoms giant Ericsson has predicted that 5G internet will cover up to 65% of the world’s population by the end of 2025.

In a recent report by a global telecoms equipment supplier, 5G would handle 45% of global mobile data traffic within six years.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

Ghana Revives National Airline, Orders Brand New Aircraft

November 19, 2019

Ghana’s ambition of becoming West Africa’s regional financial, economic and tourist hub received a shot in the arm today as the government took concrete steps towards the reviving of its national carrier; Ghana Airways. This is through series of agreements reached today on the sidelines of the Dubai Air Show with the signing of three significant aviation deals. This is coming after the country hosted the homecoming for the Africa Diaspora from around the world which attracted thousands of people from the Africa Diaspora to Ghana this year. The first agreement was with Boeing Corporation for three Boeing 787-9 Dreamliner aircraft with a list price value of $877.5 million according to list prices. The move is to help the country fast-track the establishment of its national carrier. Add to that, the government also signed a deal with De Havilland Aircraft of Canada to procure six Dash8-400 aircraft.

As a follow up to the Memorandum of Understanding to acquire the three B787-9 aircraft, the Ghanaian government equally announced its intent to purchase GEnx-1B engines for the three Boeing 787 Dreamliners that will be used to re-launch an airline. According to company sources, the engine order is valued at more than $150 million list price.

Speaking on the development, the Ghanaian Minister of Aviation Joseph Kofi Adda said that there is a growing demand for air travel to and from Ghana and the government believe the advanced 787-9 Dreamliner gives them an efficient and flexible machine to launch a regional network and eventually serve international destinations in the future. He noted that the 787 has an excellent reputation for its operational performance, fuel efficiency and passenger experience and “we are confident that we have the right partner for our new carrier.”

Mr Adda said the carrier, to be based in Accra, would establish the capital city as a strategic hub that serves cities across West Africa. Future routes would include destinations in Europe, North America and Asia and the long-term plan is to open the airline to private investment and operation.

Senior Vice President of Commercial Sales & Marketing for The Boeing Company Ihssane Mounir said, “Africa boasts a growing, young workforce and vast natural resources. We see the demand for air travel continuing to rise across the continent. Boeing is honored to work with Ghana in helping re-launch an airline to serve this vast market.”

He added, “We look forward to working with the government on an integrated solution that includes the 787-9 Dreamliner and aviation services to support the new airline and provide a superior experience for its future passengers.” The General Manager of GEnx Mahendra Nair was quoted as saying that GE Aviation is honored to provide GEnx engines for the new 787 Dreamliners that Ghana will acquire to re-launch a national carrier, noting that “The GEnx engine has proven itself with the highest reliability and utilization rates that benefit our customers, and we look forward to working with Ghana as the country progresses on its strategy to re-enter the aviation industry.”

The plan to reestablish a national flag carrier has been in the works for some time now. The newly signed by the Aviation Minister Joseph Kofi Addah is expected to further the dream to see a new national airline take to the skies. The 787-9 is part of a family of three airplanes that offer long ranges and unmatched fuel efficiency in the 200 to 350 seat market. The 787-9 can carry 296 passengers and fly up to 7,530 nautical miles (13,950 kms), while reducing fuel use and emissions by 20 to 25 percent compared to older airplanes. Since entering service in 2011, the 787 family has enabled the opening of more than 250 new point-to-point routes and saved 45 billion pounds of fuel.

“GE Aviation is honored to provide GEnx engines for the new 787 Dreamliners that Ghana will acquire to re-launch a national carrier,” said Mahendra Nair, general manager of the GEnx program. “The GEnx engine has proven itself with the highest reliability and utilization rates that benefit our customers, and we look forward to working with Ghana as the country progresses on its strategy to re-enter the aviation industry.”

The plan to reestablish a national flag carrier has been in the works for some time now. The newly signed by the Aviation Minister Joseph Kofi Addah is expected to further the dream to see a new national airline take to the skies as Ghana works assiduously towards being West Africa business and economy hub.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry.

Ghana to Boost Cocoa Production with $600 Million Loan

November 14, 2019

The Ghanaian government has taken a step to further deepen their ongoing economic diversification programme by launching a project aimed at boosting the country’s Cocoa production. This forms part of the government’s efforts to ensure that it does not fall into the trap of allowing its new found petroleum wealth to lead to the neglect of other sectors, notably agriculture which is labour intensive and will help create employment.

To this end, the government yesterday, entered into a historic loan agreement with three key financial institutions, notably, the African Development Bank, Credit Suisse, Industrial and Commercial Bank of China with the Ghana Cocoa Board to ink $600 million loan agreement to boost cocoa product.

Speaking on the development, the President of African Development Bank, Dr. Akinwumi Adesina said that this is a phenomenal event, the result of hard work of everybody to make this happen. He added that “I want to thank the leadership of President Nana Akufo-Addo for making sure that his country and Africa can get to the top of the value chain in processing cocoa into a wide range of chocolates, among others”.

Dr. Adesina was speaking against the background of Africa’s disadvantaged position in the global Chocolate chain where Ghana and Cote d’Ivoire account for roughly 65% of global supply of cocoa beans and Africa accounts for 75% of all that, but only accounts for 2% of the $120 billion chocolate market.

Adesina concluded that “this is a great day, and this is what the Africa Investment Forum is slated for: to make big things happen for Africa. Ghana is bankable. Cocoa is bankable, and of course, Africa is bankable”.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry.

The Ghanaian Government Signs Visa Waiver With Six Countries

October 28, 2019

In its efforts to rebrand Ghana as home to the Black diaspora, and also improve investment and business climate, the Ghanaian government has entered into multiple nations visa waiver scheme with six countries. According to a release from the Ghanaian Foreign Affairs Ministry, Ghanains who hold ordinary passports and diplomatic passports can now travel to India, Iran, Colombia, Equatorial Guinea, Hungary, and Morocco without Visa.

The Visa Waiver was approved by the Ghanaian Parliament late last week before they commenced their weekend break. Minister of Foreign Affairs had earlier submitted the paperwork to parliament for approval a source told African Heroes.

This development comes after South Africa’s Department of Home Affairs added Ghana to a list of seven countries whose nationals will be permitted to enter South Africa visa-free.

South Africa had in September 2018 announced that it was finalising a number of visa waiver agreements with other countries including Ghana to allow travellers to enter the country without a visa.

The South African visa waiver covered only diplomatic passport but not ordinary passport officeholders, the report said. However, there are indications that Ghana is working to have it cover all Ghanaians.

This development according to government officials is a very positive one taking cognizance of the labourious process of visa application Ghanaians go go through before traveling to some of these countries.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry.

US Govt. Threatens Ghana Over Termination of Contract

October 25, 2019

Ghana stands to lose over $200 Million from the Millennium Challenge Corporation (MCC) if it fails to nullify by 30^th October, the contract of the Power Distribution Services (PDS) Ghana Limited which was terminated by the Ghanaian government via a letter dated March 1, 2019. The Ghanaian government claimed the termination of the contract between the PDS and the Electricity Company of Ghana (ECG) was due to breaches of agreement.

In the said letter, the government of Ghana alleged that the PDS failed to fulfil the necessary “condition precedent” in the agreement, which borders on demand guarantee. The United States government however, is not taking it lightly with the Ghanaian government thus giving them till 30^th of October to reverse the decision or face sanctions of losing about 190 million dollars under the MCC Compact II.

In a letter addressed to Ghana’s Finance Minister dated October 18, 2019, the United States government through the Millennium Challenge Corporation (MCC) asked Ghana to “…reinstate the concession rights of Power Distribution Services Limited (PDS) as contemplated under the agreements governing the ECG-PSP…”. By that, the MCC wants Ghana to restore the lease and assignment agreement, bulk supply agreement and government support agreement which form the PDS-ECG PSP transaction agreement.

It asked the government to restore the PDS-ECG agreement and then restructure same by “facilitating the restructuring of the equity interest of PDS”. Moreso, it has asked Ghana to “maintain the framework and the terms and conditions of the existing transaction agreement unless otherwise agreed to by all parties”.

MMC is also asking Ghana to maintain Meralco “in its current roles of financial lead shareholder, operation lead shareholder and developing country lead shareholder”.

Ghana government per the letter from the MCC is also to facilitate equity participation of potential Ghanaian institutional investors in the transaction in a fair and transparent manner “while handling the rights of the existing shareholders”. It also noted that the Ghana Infrastructure Investment Fund, the Ghanaian Pension Fund and SSNIT as some of the Ghanaian institutional investors the government could look at.

Consequently, the US government through the MCC wants the Ghanaian government to formally announce the reinstatement of the PDS concession rights by October 30 after which the MCC “will release to MiDA, tranche 2 funding of about 200 million dollars and permit such funding to be committed to approved contracts under the Compact. It has also asked Ghana to cause its Energy Commission to lift the suspension of PDS retail supply licence. Insisting that once this is done, the MCC will authorise the resumption of activities towards the development of a regional compact, which Ghana has expressed interest in benefiting, the letter said. Many in Ghana are not taking this lightly as they see it as arm-twisting tactics being employed by the United States to project its interests ahead of that of Ghana.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry.

Ghana ‘s Government Bars Telcom Companies From Charging Subscribers 9% Communication Service Tax

October 12, 2019

Ghana ’s Communications Ministry has ordered Mobile Network Operators (MNOs) to stop passing on the 9% Communication Service Tax (CST) to subscribers.

In a letter addressed to the National Communications Authority (NCA), and published in full below, the Communications Ministry stated that the CST should be treated the same way VAT, NHIL, GETFUND levy and all other taxes and levies imposed on entities doing business in Ghana are treated.

“At a series of meetings held between the Ministry of Communications, Mobile Network Organisations (MNOs) and the NCA on 7th and 8th October, 2019, we were informed that prior to 4th September 2019, MNOs had not been passing on CST to subscribers but had decided to take advantage of the 3% increase to pass on the entire tax to subscribers. This has effectively increased their profit margin at the expense of subscribers,” the letter explained.

Image result for Ghana Mobile penetration — Source: The ‘Digital in 2018’ report

Click here to download the directive

Here Is All You Need To Know

MTN, AirtelTigo, Vodafone and Glo have been charging their customers the full amount of the revised Communication Service Tax (CST) since October 1, 2019.
The CST, which has been increased from 6% to 9%, has been applied to any recharge purchase by subscribers.
For every GH¢1 of recharge purchased, a 9% CST fee is charged the subscriber leaving ¢0.93 for the purchase of products and services.
According to the Ministry of Communications statement, which has been copied to all the telcos, this is wrong.
Finance Minister Ken Ofori-Atta in the Supplementary Budget announced an increase in the CST from 6% to 9%.
Source: National Communications Authority (NCA), 2016
According to the Finance Minister, the increase was to help develop the foundation for a viable technology ecosystem in the county.
This will comprise putting in systems to identify and combat cybercrime, protect users of information technology and combat money laundering and other financial crimes.
Mr Ofori-Atta maintains that sharing ratio would be done in a way that the National Youth Employment programs would continue to receive the same portions as the current cycle. In 2018 the tax was first introduced at an Ad Valorem Rate of 6 per cent.

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world

Effective October 1, 2019 Ghanaians Will Now Pay 9% Communication Service Tax Every Time They Recharge

October 4, 2019

Beginning October 1, 2019, a 9% levy will be charged mobile phone users for communication services in Ghana.

The Communication Service Tax (CST) was previously set for 6%, however, it was raised to 9% during the presentation of the 2019 Mid-year Budget Review by the Finance Minister.

The Finance Minister, Ken Ofori-Atta, told Parliament that the levy was increased in a bid to build a viable technology ecosystem in Ghana.

MTN Ghana has also circulated the information below on social media.

The Ghana Chamber of Telecommunications explained the implementation of the new levy thus: For every GH¢1 of recharge purchased, a 9% CST fee will be charged leaving GH¢0.93 for the purchase of products and services.

“Dear customer, with the increase in Communications Service Tax — CST to 9%, effective 1st October 2019, CST of 9% will be applied to every recharge. Thank you,” Vodafone Ghana has informed its subscribers.

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world

Ghana’s GDP Grows By 5.7% In The 2nd Quarter of 2019

September 21, 2019

Ghana’s economy grew by 5.7 per cent year-on-year compared to the 5.4 per cent recorded in the same period for 2018.

This was contained in the Ghana Statistical Services (GSS) second-quarter GDP estimates released in Accra on Wednesday.

According to the GSS, the estimates are based on provisional data secured from all sectors of the economy.

Breakdown of the estimates

However, without oil, the GDP estimates for the second quarter stood at 4.3 per cent and 5 per cent for the same period in 2018.

However, when it is seasonally adjusted, real GDP increased to 1.4 per cent from April to June this year.

According to the Ghana Statistical Service, the main growth drivers for the performance from April to June 2019 were Information and Communication, Mining and Quarrying, Health and Social Work and Real Estate.

Sector contribution to GDP growth for the second quarter

The Services sector recorded the highest growth of 6.5 per cent, industry followed with 6.1 per cent, while Agric posted a 3.1 per cent growth rate.

Under the services sector, Information and Communication sub-sector increased from 14.6 per cent in quarter two of 2018 to 52 .8 per cent in the second quarter of 2019.

Source: GSS

It was followed by Real Estate which recorded a 14.9 per cent jump in growth, recovering from its 0.8 per cent contraction in the second quarter in 2018.

Education had 8.9 per cent and Hotel and Restaurant had 6.6 per cent.

Finance and Insurance which in the past had been the trailblazer of the sector however just recorded 1.4 per cent growth. However, Public, Administration and Defense, social sector contracted by 2.8 per cent.

Industry

Its growth was propelled by Mining and Quarrying sub-sector, which slowed to 14.0 per cent in the second quarter of 2018 compared to 14.9 per cent recorded in 2019.

However, Construction contracted or declined by 8.3 per cent, Water Supply, Sewerage, Waste management and remediation was down by 7.9 per cent. Electricity also went down by 7.5 per cent.

Agric sector

Livestock 5.7 growth pushed the overall growth of the Agric Sector, while crops increase by 4 per cent. However, Forestry was down by 6.5 per cent, while fishing also declined by 2.1 per cent.

Source: GSS

GDP sector share

The Services sector remained the largest sector the Ghanaian economy, based on the Secord quarter estimates, with a share of 49.1 per cent.

This should mean that the country or economy can be described as Services-led. Industry accounted for 35.6 per cent, while Agric had a 15.3 per cent share of the total size of the economy.

How the GSS measured the Data

The GDP estimate is the main indicator of economic performance for the country. They are measured in three approaches, that’s output approach, the expenditure approach and the income approach.

This Statistical release contains independently compiled quarterly estimates of the GDP for the second quarter using the product approach. It is based on the 2008 System of National Accounts, the International Standard Industrial classification.

This post originally appeared on Myjoyonline.com

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world

Towards an AfroChampions fund to finance the African Continental Free Trade Area (AfCFTA)

August 7, 2019

On the occasion of a high-level meeting convened in partnership with His Excellency Dr. Mahamudu Bawumia, Vice-President of the Republic of Ghana, and bringing together investors, financing institutions and sovereign and private funds, the AfroChampion Initiative has formally launched a private sector investment framework to secure financing for the African Continental Free Trade Area (AfCFTA).

The objective is to mobilize the private sector, in Africa and beyond, through a dedicated blended-finance vehicle to accelerate the continent’s economic integration, by rapidly deploying those infrastructure projects which are critical to successfully delivering the AfCFTA and making it a positive transformation for Africans.

The proposed framework is forward-looking and includes many proposals from the AfroChampions Boma on Infrastructure Financing and Delivery organized last April in Nairobi with the African Union’s High Representative for Infrastructure His Excellency Mr. Raila Odinga.

Considering that key enablers of the AfCFTA are the removal of non-tariff barriers, the deployment of transport and connectivity networks, access to cheap energy, and African economies’ upscaling towards more value-added products, the framework defines a range of priority opportunities as well as structuring projects to be financed, under certain conditions, by the fund set up for that purpose.

Most importantly, the AfroChampions Initiative also provides for an annual benchmarking process to follow up on this program as well as on national reforms transcribing the AfCFTA to improve African states’ cross-border business-readiness.

“With the AfroChampions Initiative, we have found partners committed to our vision of a prosperous and integrated Africa and working to implement practical solutions.

The AfCFTA Private Sector Investment and Financing framework is a very thorough approach: monitoring the AfCFTA agreement’s legal implementation, defining certification criteria qualifying projects eligible for funding, mobilizing the private sector in Africa, and a process to coordinate with the public authorities ” said H.E.M. Albert Muchanga, African Union’s Commissioner for Trade and Industry.

“The African Union’s Summit in Niamey gave us a great opportunity to raise awareness among Heads of State and we hope to be able to move quickly on this ambitious roadmap.”

“To address reluctance and concerns about the AfCFTA, we must demonstrate that it is a major and tangible opportunity for all stakeholders, whether states or companies regardless of size, civil society or individual citizens of the African continent. And this AfCFTA Private Sector Investment and Financing Framework is the best tool for realizing that goal,” said Ali Mufuruki, Vice-President of the AfroChampions Club for the East Africa Region.

“We need to work better together across borders and focus on high-impact regional or pan-African projects – because they are the most likely to attract the volume of funds that we need. This is our main challenge today”.

The participants in the Accra session defined at the end of their workshop a detailed roadmap, including various milestones over the next 18 months. Among the key dates is the presentation of the dedicated fund, scheduled for the 4th quarter of 2019 for the next AfroChampions Boma, the first benchmark and a follow-up report on the AfCFTA implementation and the organization of an exhibition on ‘made in Africa’ early 2020.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry.

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Nana Araba Abban Appointed Group Consumer Banking Head at Ecobank Transnational

Ecobank Transnational Incorporated, ETI, the Lomé-based parent company of the Ecobank Group, announce the appointment of Nana Araba Abban as Group Consumer Banking Head with immediate effect. Nana will be a member of the Group Executive Committee and report directly to the Group Chief Executive Officer.

Nana Araba Abban is a Chartered Accountant (FCCA) with over 25 years’ experience in the Financial Services industry. During her career at Ecobank, Nana Araba Abban has held several senior positions including Group Head of Direct Banking, Head of Client Engagement and Senior Group Manager for Personal Banking.

Commenting on Nana’s appointment, Ade Ayeyemi said- “We are happy to confirm Nana as Group Head, Consumer Banking. She has extensive experience in the consumer banking space in various areas.

Nana, who has been a senior member of the Consumer Banking team in the Group for some time will further grow our consumer business in line with our digital transformation agenda building on the successes we have had in the past. I convey hearty congratulations to Nana on this appointment.’

Mr. Ayeyemi continued: “We are particularly pleased with the effectiveness of our succession planning as we have been able to fill vacancies from within the Bank. We will continue to grow our talent pool.”

Before joining Ecobank, Nana Araba Abban held several senior positions with Standard Chartered Bank, Royal Bank of Scotland and other institutions in Product Portfolio Management, Product Accounting and Banking Operations.

Nana Araba Abban holds an MBA, in Business in Emerging Markets from the University of Liverpool and Bachelor of Science in Mathematics & Statistics from Queen Mary & Westfield College, University of London, UK.

She is also a Fellow of the Association of Chartered Certified Accountants Nana Araba Abban, the new Group Consumer Banking Head had been acting in that capacity prior to now, alongside her previous role of Group Head, Direct Banking.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry.