Author: OBG Admin

Sheikh Ahmad Duaij Jaber Al Sabah-Chairman-Commercial Bank of Kuwait

Fertile results: Subsidies to promote fertiliser use have been largely successful and may be phased out

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In 2008 Ghana implemented the Fertiliser Subsidy Programme (FSP), aimed at using fertiliser to boost overall crop productivity. While it increased domestic consumption, it also entailed considerable financial outlay. From the GHS395.2m ($109.7m) allocated to the agriculture sector in the 2015 national budget, about GHS347.2m ($96.3m) – or 87.9% – is earmarked for initiatives like the FSP, Agricultural Mechanisation Services and the Youth in Agriculture Block Farm Programme, with the government aiming to subsidise 180,000 tonnes of granular fertiliser at a cost of GHS80.4m ($22.3m).

Nhon Luc Ly-CEO-AIA Myanmar; Son Nguyen-Country President-Chubb Life Insurance Myanmar; Daw Zarchi Tin-CEO

Going big: The government is inviting agricultural conglomerates to develop huge tracts of land

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Land ownership and transactions are among the largest obstacles to the development of Ghana’s agricultural sector. Smallholder farms of less than 3 ha continue to account for around 90% of agricultural producers, with traditional land ownership structures acting as an impediment to attempts to consolidate arable land into larger tracts that can be properly mechanised. “In the past we did not have a workable framework, but as of 2014 we’ve had positive consultations with traditional authorities, which I think will yield good results for 2015,” said Richard Adjei, principal investment promotion officer at the Ghana Investment Promotion Centre, who suggests that the key is to

Sheikh Ahmad Duaij Jaber Al Sabah-Chairman-Commercial Bank of Kuwait

Time for Tema: Investment in the country’s largest port continues

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Tema, around 20 km to the east of Accra, is Ghana’s largest port, handling around 70% of its international maritime trade, and most of its imports. It is also an important maritime gateway for the landlocked countries to Ghana’s north, though it faces rising competition from other coastal neighbours. The port is home to one of the country’s most successful public-private partnerships (PPPs), often cited as a model for future transport infrastructure projects. Tema entered a new phase of development in 2002, when the Ghana Ports and Harbours Authority (GPHA) launched a port upgrade programme. This involved the authority shifting towards being a landlord of

Pham Hong Hai-CEO-HSBC Vietnam

Up and away: Upgrading facilities and expanding capacity at the nation’s airports

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For some years, the development of Ghana’s airport infrastructure lagged behind economic growth. Accra’s airport, the gateway to the country, came under pressure from rising passenger numbers, while major regional centres lacked the connectivity that could have helped them better tap into the country’s growth. Now the government, backed by international financial institutions, is addressing the issue, with a range of investment projects expanding capacity and a view to supporting economic and social development and enhancing Ghana’s position as a regional aviation centre. Kotoka International Ghana’s main airport is Kotoka International Airport (also known as KIA), around 10 km from the centre of Accra. On

George Richani-CEO-Al Ahli Bank of Kuwait

Cash in hand: New guidelines legitimise mobile money as a payment system

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Mobile money is a growing segment in Ghana, having been launched in 2009, later than in some African countries. Transactions worth a total of GHC11.6bn ($3.22bn) were made in 2014, up from GHC2.4bn ($666m) in 2013, according to Bank of Ghana (BoG) statistics. The number of transactions soared from 36.8m in 2013 to 106.4m in 2014, while the number of registered mobile money customers grew by nearly two thirds in 2014, reaching 5.42m. As in conventional telecoms subscriptions, MTN is the market leader, with around 4.8m subscribers and monthly transactions worth more than GHC18.5bn ($5.13bn). Mobile money is particularly useful for extending banking services in

Mohammed El Etreby-Chairman-Banque Misr

Operation transformation: A new government strategy plans to digitise the nation

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Ghana is a leader in African telecoms market liberalisation, has a relatively high level of mobile penetration and is a regional centre for submarine cables. However, this has not necessarily been reflected by the use of ICT in the day-to-day lives of Ghanaians or in ordinary businesses. For Daniel Glover, general manager of Tecno, the issue is digital awareness: “We believe providing 4G LTE will not necessarily make any difference without showing people what to do with the internet.” In November 2014, the government launched the e-Transform Ghana project to address this. Goals Under the overarching objective of broadening ICT take-up, e-Transform Ghana has a

Sheikh Ahmad Duaij Jaber Al Sabah-Chairman-Commercial Bank of Kuwait

Towers of value: Mobile operators are sharing and outsourcing infrastructure

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Across the continent, there is a trend towards sharing and outsourcing network infrastructure, which is capital intensive to build and costly to maintain. Ghana has been a leader in this movement, with major deals struck between mobile operators and infrastructure operators over the past five years. Changing Times For some time, the trend was slow due to the fierce competition between players, but economic logic has asserted itself. Declining average revenue per user and the need to boost data capacity have put pressure on operators to move towards outsourcing and sharing models, “releasing value” from their tower infrastructure. Infrastructure ownership and management is no longer

Pham Hong Hai-CEO-HSBC Vietnam

Bubbling up: Growing household spending will benefit manufacturers of fast-moving consumer goods

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In recent years multinational fast-moving consumer goods (FMCG) companies have been turning their attention to the expanding consumer markets in Africa, with beverage companies often in the vanguard. This is certainly visible in Ghana, where research firm BMI forecasts that total household spending will reach $8bn in 2015, with a compound annual growth rate of 7.5% alone for carbonated soft drinks sales between 2013 and 2017. “Ghana has a very large market for FMCGs, with a mix of international and local producers,” Ben Akutteh, sales manager at a local branch of South Africa’s discount retailer Game, told OBG, though he added that currently most FMCGs

Sheikh Ahmad Duaij Jaber Al Sabah-Chairman-Commercial Bank of Kuwait

Cost pressures: Power shortages and the declining currency are having a notable impact on the sector

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Access to electricity supplies remains the biggest concern for industries in Ghana, according to those involved in the sector. “The major concern is energy supply. The impact of power outages is huge for businesses, and the inconsistencies in the load management schedule makes planning very difficult,” John Defor, a policy research officer at the Association of Ghana Industries (AGI), told OBG. “Companies have staff who report for work and there is no power, but their wages must still be paid anyway. Some industries lose raw material, since the power goes off halfway through production.” Energy Challenges In October 2014 the minister of energy, Emmanuel Armah-Kofi

Nhon Luc Ly-CEO-AIA Myanmar; Son Nguyen-Country President-Chubb Life Insurance Myanmar; Daw Zarchi Tin-CEO

Provenance plan: Local goods are being promoted domestically to create jobs and bolster manufacturing

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In line with similar efforts elsewhere in the world, Ghana has targeted the promotion of domestic Made-in-Ghana brands and is attempting to change the behaviour of Ghanaians towards locally produced goods. Beyond simply promoting domestic industry and culture in general, the push is aimed at creating jobs and reviving struggling sectors such as the textile industry. In 2014 Ghana imported $17bn worth of goods, while it exported goods worth $13bn, according to the Ministry of Trade and Industry. This trade deficit is a growing cause