Author: OBG Admin

Éric N’guessan-Managing Partner-EY Côte d’Ivoire

Money trees: Non-cocoa tree crops offer revenue and diversification potential

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  While cocoa remains the dominant source of agricultural export earnings, a number of other tree crops, including cashew, coffee, coconut, oil palm, mango, rubber and shea nut, have seen promising harvests over the past few years. In an effort to capitalise on this potential to diversify revenue, the administration of President Nana Akufo-Addo announced the Planting for Export and Rural Development (PERD) programme in April 2019. Once the programme has been implemented and related value chains are in place, it anticipates each of these tree crops could provide up to $2bn of annual export earnings. To further strengthen the institutional structures of the industry,

Éric N’guessan-Managing Partner-EY Côte d’Ivoire

Local potential: A government-run initiative is helping to partner small-scale manufacturers with private sector investors

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  The One District, One Factory (1D1F) initiative was launched in 2017 as part of the government’s 10-Point Industrial Transformation Agenda released in the same year. Aimed at developing local industry through small and medium-sized enterprises (SMEs), the strategy hopes to establish a factory in 110 of Ghana’s 275 districts. By developing local capacity and facilitating private sector growth, the 1D1F initiative has the potential to create new employment opportunities, reduce reliance on imports, and ensure higher export earnings from processed and refined raw materials.

Pham Hong Hai-CEO-HSBC Vietnam

Spending power: Growing consumer confidence and the rise of e-commerce presents opportunities for retailers to expand

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  Rising living standards, falling unemployment rates and lower inflation point to a turnaround in consumer demand in Ghana in the years ahead. After a slowdown in the uptake of retail space, renewed consumer confidence and increasing purchasing power could provide renewed impetus for the sector’s growth. Macro Indicators Per capita GDP has increased each year since 2015, reaching $4738 in 2018, up from $4457 in 2017 and $4135 in 2016. In comparison, the regional average for sub-Saharan Africa stood at $3968 in 2018 and

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

Agenda for growth: Private-sector-focused strategy for the digitisation of public services and the development of digital industries

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  As part of a broader strategy to establish Ghana as a leading centre of ICT innovation in sub-Saharan Africa, the government announced the release of a new digital roadmap in May 2019. This new strategy is set to consolidate and build upon increased digitisation of public services, while leveraging the rising use of digital technologies by businesses and consumers. Beginning with the launch of online passport renewals in December 2016 and a paperless port system in September 2017, the authorities have created digital platforms

George Richani-CEO-Al Ahli Bank of Kuwait

Shipping solutions: Extensive port upgrades are linked to road and rail improvements

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  A raft of large-scale port expansions are under way as Ghana looks to establish itself as a centre for West African logistics. These developments are being buttressed by investment in road and rail infrastructure, as part of a drive to lower trans-shipment costs and improve links across local value chains. Tema Port Located some 30 km from the capital city Accra, Tema Port serves as Ghana’s main container port and maritime outlet for international transit. At less than half a day, Tema Port offers the lowest anchorage time in the region and serves as the first port of call on Africa’s western coastline, with

Daniel Asare-Kyei-CEO-Esoko; Curtis Vanderpuije-CEO-ExpressPay; and Daniel Marfo-General Manager-Zipline Ghana

Narrow the gap: Addressing the housing deficit by increasing the stock of affordable homes and easing access to mortgages

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  Ghana is following a continent-wide trend of a booming population moving towards cities. The World Bank estimated Ghana’s population at 29.8m in 2018, up from 19.3m in 2010. Meanwhile, the proportion of those living in urban areas rose from 43.9% in 2000 to 55.3% in 2017, according to the African Development Bank. These demographic shifts are straining the housing supply. In April 2019 Samuel Atta Akyea, the minister of works and housing, announced that the housing deficit had topped 2m, up from 1.5m in

Pham Hong Hai-CEO-HSBC Vietnam

Cross-border connections: Many African governments are taking steps to promote regional integration and intra-continental tourism

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  Africa’s tourism sector is booming. With a growth rate of 5.6% in 2018, compared with the global average of 3.9%, the continent is home to the second-fasted expanding tourism industry in the world, after the Asia-Pacific region. Accounting for 8.5% of the continent’s GDP, tourism contributed a total of $194.2bn to African economies in 2018. Multiple governments have recognised the importance of tourism to their countries’ economic well-being. Many of them – particularly Kenya, Rwanda and South Africa – have adopted strategies to improve

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

Homeward-bound: Year of Return campaign encourages members of the African diaspora to engage with Ghana’s history and culture

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  In September 2018 President Nana Akufo-Addo declared 2019 the Year of Return, in acknowledgement of the 400-year anniversary of the first enslaved Africans arriving in Jamestown, Virginia. The campaign aims to encourage tourism while also reconnecting members of the African diaspora with the continent, creating a tradition of homecoming for both international visitors and returning Ghanaians. President Akufo-Addo’s announcement highlighted Ghana’s legacy as a reason for descendants to return and learn about this chapter of history. “The initiative recognises Ghana’s strategic position as the

George Richani-CEO-Al Ahli Bank of Kuwait

A new act: The history of value-added tax (VAT) in Ghana

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  The topic of VAT has dominated the discussion of taxation in recent years, with the most notable conversations occurring in the Gulf. Like the Gulf countries, many territories have their own story of implementing the tax. This analysis outlines the VAT story in Ghana, highlights how the tax has changed over the years and explains the situation surrounding the current VAT regime. If anyone were to ask what is the applicable VAT rate in Ghana – and more importantly, what are the responsibilities and expectations around VAT – the most accurate answer would be that it depends on several factors. First Try VAT was

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

Renewed framework: Efforts to revive the corporate governance landscape

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  The new Companies Act promotes prudence in management, effective boardroom practice and shareholder activism. The timing of this new law is ideal as 2018 saw a string of collapsed banks, many of which experienced a breakdown in their corporate governance regime. For the first time in Ghana’s corporate governance history, an Office of the Registrar of Companies (RoC) will be established, with an insolvency division dedicated solely to the registration and administration of companies. Companies Act 2019 The act abolishes the ultra vires rule, enabling a company to set up operations without stating company objects at the incorporation stage – save for mandatory circumstances