Author: Bernard Yaw Ashiadey

Economy escapes contraction in Q1 despite COVID-19 scare

Despite the coronavirus pandemic biting economies around the world hard, with many seeing a contraction – especially the developed ones, Ghana’s economy was able to withstand the destructive power of the disease, as it rather experienced growth; albeit slower than same period the previous year – thanks to the information and communication sector.

In the first quarter of 2020 the pandemic decimated economic super-powers like the United States, which saw a contraction of 4.8 percent; China also shrunk for first time in almost three decades, by 6.8 percent; the UK also experienced its biggest fall since the financial crisis in 2008, contracting by 2 percent; and Singapore contracted by 2.2 percent. But little Ghana, which has an economy only a fraction of the countries mentioned, on the contrary grew by 4.9 percent in the midst of the pandemic.

The sector credited with pushing growth to that level is information and communication, which grew astronomically at 77.4 percent – with its percentage contribution to the Q1 GDP hitting 42.7 percent.

Overall, the services sector maintained its position as largest contributor to GDP, growing at 9.5 percent. It was this time followed by the agriculture sector, which grew at 2.8 percent – catapulted unusually by the fishing sector which has performed abysmally for some years now. The Industry sector rather trailed, growing at 1.5 percent in the first quarter.

Compared to last quarter (Q4 of 2019), the economy grew at 7.9 percent and 6.7 percent in the first quarter of 2019. In monetary terms, productive activities in the first quarter of 2020 were worth some GH¢92billion.

Despite impressive growth in the first quarter, analysts say it is too early to assess the pandemic’s impact on the economy as the country recorded its fist case of the deadly disease late into the quarter; meaning data captured cannot reflect the true effects of the pandemic’s impact compared to countries which recorded cases earlier in the year.

Director of the Institute of Social, Statistical and Economic Research (ISSER) at the University of Ghana, Prof. Peter Quartey told the B&FT: “The analysis should be put in context. Ghana recorded its first case of the virus on March 12, and that is just 18 days to end of the first quarter. So the data didn’t capture all the pandemic’s effects and the interventions made by government. The real effect will come in the second quarter. It is only after the second quarter that we can say we have escaped from a recession if the economy grows again”.

An economist at Data Bank Research, Courage Martey, also made similar comments when interviewed by the B&FT. He said: “When you look at the quarter-one growth and compare it to same period last year, that is a sharp drop. It tells you that the impact of COVID-19 as at quarter-one has just started hitting our economy.

“So, the quarter-one growth doesn’t capture the full story of what is to come, because the data didn’t capture the lockdown and its effects. The lockdown started in April, and so what we should be looking out for is what the subsequent quarters will bring. That is what will give a true picture of the pandemic’s effects on the economy.”

Finance Minister Ken Ofori-Atta has said that the deadly global pandemic will cause Ghana’s economy to see GDP growth decline significantly – to 2.6 percent from a projected 6.8 percent – if there is an outbreak of the disease in the country; and further tumble to 1.5 percent should the country go on a partial lockdown.

For Mr. Martey, it is unlikely that Ghana will see a contraction considering the make-up of its economy.

“If you look at the overall forecast for developed economies, you will arrive at the conclusion that Ghana’s economy is not projected to contract. So the positive growth we are seeing in quarter-one is in line with expectations that Ghana should not contract this year despite COVID-19, even though the advanced economies are going to contract. This is because Ghana has an export base that is more diversified than our peers like Nigeria and Angola, which are more concentrated on one commodity,” he said.

thebftonline.com

June 18, 2020
Tax Audit and Quality Assurance Unit inaugurated to crack down on corrupt officers

To root out corrupt revenue collection officials in the country, the Ghana Revenue Authority (GRA) and Ministry of Finance have established a Tax Audit and Quality Assurance Unit.

A bold move, according to some industry voices, the new department will deal with all complaints of corruption and ensure that the public gets redress for any concern brought before it. It will also serve as the auditing arm of the GRA and re-audit the work of officers to ensure they have not shortchanged government through their actions, knowingly or unknowingly.

Speaking at the new unit’s inauguration under the GRA, the Commissioner General of GRA, Ammishaddai Owusu-Amoah said: “For every tax authority there are a lot of complaints that we normally receive: complaints about corruption; tax that is not rightly calculated; understanding on how we arrived at a certain tax that needs to be paid; and also the case of perception of corruption, or lack of integrity for a taxman.

“Therefore, as an authority, if you want to deal with the issue of corruption and integrity it requires a definite and purposeful act to be able to move ahead. So, the GRA in looking at all these decided to come up with a definite action to deal with the issue: this is the reason for the Tax Audit and Quality Assurance Unit.”

Through the establishment of this unit, Mr. Owusu-Amoah added, the authority is now setting up a centralised audit-planning process. “We will make sure that we have a centre of excellence for audit, and we will also make sure that the quality of our audit is good. This unit will be very critical for our revenue mobilisation efforts going forward,” he said.

Minister of Finance Ken Ofori-Atta commended the GRA for the move, and said it could not have come at a more appropriate time – considering the conscious efforts by government to rake in all available revenue to shore-up its coffers to run the country.

He indicated that the country’s tax to GDP ratio stands between 11-13 percent, but there is an ambitious target of hitting 20 percent that can be done if the state body responsible for tax collection is given the right human capital, backed with the requisite technology, and there is strict oversight over the operations of officers.

For him, the unit will not only keep officers on their toes but also ensure that all citizens declare accurate tax liabilities, as the work of officers will be thoroughly scrutinised to ensure no infractions were recorded. “Once auditors know their work will be reviewed thoroughly, they will not compromise on the integrity and professionalism that is required from them,” Mr. Ofori Atta said.

Highlighting figures the nation is losing in revenue due to corruption and lack of the right technology and approach, the minister said: “In terms of our experience, you look at registration and you have up to 5 million unregistered taxpayers – both individual and corporate entities; and with filing and payments we have about GH¢400-600million in uncollected debts due to bottlenecks, acts of transparency and inconsistent application of debt-recovery actions.

“On the compliance and debt management side, there’s at least GH¢300-400million of missed infractions and post-clearance audit due to absence of best practices in the case management system. On the Customs side, we have some 30 percent deviation on the targets due to lack of clear tracking and manual-based practices which are being changed.”

thebftonline.com

June 18, 2020
GH¢1m fund set aside for winners of Presidential Pitch 3

The third window of the Presidential Pitch is open for entrepreneurs to tap into the GH¢1million set aside as business support from the Ministry of Business Development.

The Presidential Pitch offers young entrepreneurs an opportunity to pitch their business ideas to a panel of experienced judges, out of which 10 will be selected as winners and awarded funds to support their businesses.

Speaking to the press, the Business Development Minister, Dr. Ibrahim Mohammed Awal, noted that President Akufo-Addo is determined to create an ecosystem that supports entrepreneurs to thrive and enables job creators.

He said: “In Ghana, only 2% of young people think they should be entrepreneurs because the ecosystem does not support them. But that’s why the president is restrategising and setting up the Business Development Ministry to enable a good ecosystem to thrive”.

The minister revealed that Seasons one and two of the Presidential Pitch supported 20 entrepreneurs who created 460 jobs in return.

He noted that 250 jobs are expected to be created from the 10 jobs that will be supported in the third window.

He added that in addition to the money, the selected individuals will be given business advisory support on how to use the money in terms of marketing, branding, access to finance, and social capital to make sure that they are well prepared.

Dr. Awal advised unlettered individuals to visit the ministry for assistance, or get literate family members to assist in the application process.

According to him, what matters most is the ability to explain a business idea and how it will contribute to solving unemployment in the country.

“Whether you’ve been to school or not, once you have a good business idea and you don’t have money to implement it, just apply to the Business Development Ministry and the judges will assess its sustainability.”

Interested individuals are expected to apply via www.mobd.gov.gh.

Giving an update on winners from the first and second window, the minister noted that Aisha Limann, winner for the first window, has introduced new products and set up a factory awaiting inauguration.

He said Matilda Asantewaa Sarpong and Emily Otoo Quayeson, winners of the second window, are working assiduously with the Kwame Nkrumah University of Science and Technology to produce quality sanitary pads for commercial purposes.

thebftonline.com

June 18, 2020
Ghana appointed to serve on GIFCT

Ghana has been appointed as a member of the Independent Advisory Committee (IAC) of the Global Internet Forum to Counter Terrorism (GIFTC). This nomination is due to Ghana’s political commitment and human right-centric approach to developing its cybersecurity, as well as its active engagement at the regional and international level to promote responsible use of the Internet.

The GIFCT was established in July 2017 by a group of companies dedicated to disrupting terrorists’ abuse and misuse of member platforms. The original Forum was led by a rotating chair drawn from the four founding companies — Facebook, Microsoft, Twitter and YouTube. The GIFCT facilitates knowledge-sharing, technical collaboration and sponsored research toward preventing the use of digital platforms including social media for terrorist-related activities – such as the March 2019 Christchurch attack that killed about 51 people and left many injured.

National Cybersecurity Advisor, Dr. Albert Antwi-Boasiako

The IAC is part of the GIFCT and will serve as a consultative body dedicated to maximising effectiveness of the GIFCT and establishing engagements among government, civil society, and industry. The IAC is composed of government representatives, technical experts, civil society leaders, advocacy groups, human rights specialists and researchers. IAC members are selected by GIFCT’s Operating Board, composed of GIFCT’s four founding member companies: Facebook, Microsoft, Twitter and YouTube. Some of the countries serving on the IAC alongside Ghana include Canada, France, Japan, New Zealand, the United Kingdom and United States of America.

Dr. Albert Antwi-Boasiako, current head of the National Cyber Security Centre (NCSC), will represent Ghana on the Committee. The NCSC was established in 2018 under the Ministry of Communications to coordinate cybersecurity response in government and the private sector.

Within the last three years, the Ministry of Communications under the leadership of Ursula Owusu-Ekuful, the sector Minister, through the NCSC has improved significantly Ghana’s international cooperation efforts in the fight against cybercrime. In December 2018, Ghana formally acceded to the Convention on Cybercrime, also known as the Budapest Convention, and ratified the African Union Convention on Cyber Security and Personal Data Protection, known as the Malabo Convention – becoming the continent’s 5^th country to ratify the treaty.

In 2019, Ghana chaired the Freedom Online Coalition – an inter-governmental body that promotes digital rights – and during this period government collaborated with the German government to draft a Digital Inclusion Statement, which has been adopted by all FOC members. The Ministry of Communications has also been actively involved in the United Nations Open-Ended Working Group (OEWG), whose activities are aimed at improving international response to cybercrimes.

In view of these developments – and our work to improve Cybersecurity in Ghana by reviewing the legal and regulatory framework, public education and sensitisation, establishing a network of Computer Emergency Response Teams in various sectors, and capacity building for all actors in this ecosystem among others – the ECOWAS Commission has requested that Ghana lead cybersecurity efforts in the sub-region.

Ghana’s membership of the Independent Advisory Committee of the Global Internet Forum to Counter Terrorism is further recognition of our leadership role in improving the world’s cybersecurity.

thebftonline.com

June 18, 2020