Day: June 22, 2024

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Financial and digital Literacy key to bridging financial inclusion gap


Madam Angela Mensah-Poku, Chief Enterprises Business Officer, MTN Ghana, has urged actors within the financial inclusion ecosystem to prioritise financial and digital literacy as the bedrock for the industry’s growth. 

She said to bridge the financial inclusion gap and make Small and Medium Enterprises (SMEs) credit worthy, stakeholders must collaboratively work to give the needed education to the masses. 

Madam Mensah-Poku, speaking at MTN’s Business Executive Breakfast Series on the topic: ‘Bridging the Credit Risk Gap for SMEs in Ghana,’ said though technology and innovative solutions were a propeller, financial and digital literacy were necessary. 

‘Financial Inclusion, technology is nothing when there is no education on financial and digital literacy. We will never be able to attain financial wealth,’ she said. 

The Chief Enterprise Business Officer said the industry needed to be consistent and collaborative, whilst using technology to strengthen visibility on transactions, open suppliers to lending
activities and create an ecosystem where everyone could benefit. 

Mr Shaibu Haruna, Chief Executive Officer, Mobile Money Limited, said SMEs were the bedrock of Ghana’s economy and MTN believed that their technology would enable them to address the issues around credit and the risk of default of customers.

‘We are using our customer transaction data to predict their ability to pay and risks around default. The success story we have seen with our micro loan products is going to influence how we shape products for the future, and we are excited by the prospects of introducing products that address the specific needs of SMEs in Ghana,’ he said. 

Mr Haruna said through the merchants and agents transaction, the digital footprints of customers had been seen and based on the footprints they would create solutions for customers and their businesses. 

‘We can profile them for the levels of credit that we want to provide them in partnership with the banks or financial service providers and educate our customers con
stantly about the risks of financial transactions which are centered around social engineering,’ he added. 

Mr Kwame Anim-Somuah, Chief Executive Officer, A. S. Farms, and a Poultry Farmer, said technology had given their businesses exposure for people and financial institutions to know their peculiar needs when accessing credit. 

‘We need to understand that our industry is quite different, and our credit scoring must differ from what they do for the other industry,’ he said.

He said for normal trading, people realise their returns or investments quickly but those in poultry and agriculture, it took a long time for them to earn money. 

Mr Anim-Somuah said credit worthiness of individuals was a major factor for lending and that, once a credit scoring had been put in place, the interest rate should be structured in a way that should not be a generic score for everyone but on individual performances. 

Source: Ghana News Agency

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Under developing African countries should establish their own credit rating agencies – Prof. Agbloyor


Professor Elikplim Komla Agbloyor, an Associate Professor in Finance, University of Ghana Business School (UGBS), says there is the need for under developing African countries to establish their own credit rating agencies.

This, he said, when done, would make it possible for more companies to issue bonds that could help develop the local financial markets, enable African countries to reduce costs of borrowing and increase access to capital markets.

‘We cannot always be going to the Eurobond market to borrow, we need to develop our own financial markets where African countries can issue bonds and ensure that investors will be able to buy these bonds,’ he added.

Prof. Agbloyor was speaking at an inter-college lecture during the 2024 celebration of the Day of Scientific Renaissance of Africa (DSRA), which was organised by the College of Humanities of the UGBS in Accra.

The lecture was on the topic: ‘A $75 Billion Question: Do African Countries Suffer a Systematic Sovereign Credit Ratings Bias?’

As part of t
he activities for the celebration was the exhibition of scholarly works by the Centre for Migration Studies, School of Performing Arts, Centre for Social Policy Studies, Department of Geography, and other departments, institutes, and centres of the UG.

He said credit ratings in simple terms tell the quality of a borrower, be it a high quality or low quality.

Professor Agbloyor said for some time now, Ghana had experienced credit downgrades, meaning that the quality of borrowers had been reduced, which had its implications.

‘If you are downgraded, your credit quality reduces, cost of borrowing increases, making borrowing very expensive. In the case of Ghana, Egypt, and Zambia, you can no longer access international capital market meaning you cannot issue Eurobonds’

‘It also leads to capital flow reversals, because investors begin to get weary, making them begin to take their money out, leading to currency depreciation and imported inflation then leading to a banking crisis and subsequently a full-blown eco
nomic crisis,’ he added.

Prof. Agbloyor said Ghana was likely to get access to the global capital market by 2028 because, currently, Standards and Poor’s, known around the world as a creator of financial market indices had rated Ghana as Selective Default, making it difficult to issue bonds next year.

He said the research was motivated by an article from the Economist, which argued that African countries may suffer a credit rating bias.

The Prof, said there was a study also conducted by the United Nations Development Programme where they argued that if foreign countries received fair credit ratings, the continent would save on average $75 billion annually, which could be used for development purposes.

‘Now the credit rating agencies have argued that there is no rating bias and that the ratings are fair and reflect the risks of Africa, which spiked our interest as to whether there was a bias or not and to see what the data actually says,’ he added.

The Prof. said from the findings, there was a bias, becau
se during a random sampling of African countries matched against non-African countries, it was clear that Africa was a big predictor of credit rating which should not be the case.

He added that the location of a country should not be used to predict their credit ratings, whether in Africa, the United States, Canada, or Asia.

The Prof. argued that the credit agencies, when established, should be run by the private sector because it may lose trust when run by a government agency.

‘People may not trust the ratings from the onset due to credibility issues, but credibility starts from somewhere so let us support our own,’ he added.

Source: Ghana News Agency

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Port facility security officers in West, Central Africa undergo capacity-building on Port security


Port Facility Security Officers (PFSOs) from more than 15 ports in West and Central Africa have undergone capacity-building on Port Security.

The five-day regional ‘Train-the-Trainers’course, which ended on Friday in Accra equipped the officers to train their colleagues for improved security in the maritime domain.

It is an European Union (EU)-funded ‘Enhanced Maritime Action (EnMAR) in the Gulf of Guinea’ project implemented by Expertise France in collaboration with the Port Management Association for West and Central Africa (PMAWCA).

The objective is to strengthen capacities of PFSOs in the set-up and organisation of specific training courses for port security personnel along the guidelines of section 18.2 of the International Ship and Port Facility Security (ISPS) Code.

The ISPS Code is a comprehensive set of measures to enhance the security of ships and port facilities, developed in response to the perceived threats to ships and port facilities in the wake of the 9/11 attacks in the United States.

Th
e purpose of the Code is to provide a standardised, consistent framework for evaluating risk, enabling Governments to offset changes in threat with changes in vulnerability for ships and port facilities through determination of appropriate security levels and corresponding security measures.

During the closing ceremony, Mr Jonas Claes, Deputy Ambassador, European Union Delegation to Ghana, said Port security was an important and strategic topic in view of its potential linkages with global trade, organised crime and security.

He said having the most modern equipment, best protocols and manuals would amount to little without professionalism and know-how of security officers in charge.

‘That is why the theoretical and practical aspects of this week’s training are so important in making a real difference.’

He thanked participants for availing themselves and urged them to maintain the connections made for exchange of best practices.

Madam Marie Gibrat, Programme Manager of Enhanced Maritime Action in the Gul
f of Guinea (EnMAR) Project at Expertise France, thanked the EU for funding the training and their continuous support to enhance maritime security in the Gulf of Guinea, through their various initiatives in the region.

‘I also thank our hosts, Ghana Ports and Harbours Authority for their excellent

support. Thank you to the participants for their curiosity, their commitment, and thirst for sharing their experiences.’

She said recommendations developed during the training would be transmitted to the PMAWCA along with those from previous regional training sessions organised by the EnMAR Project.

Madam Gibrat said the training was the last of a series of four regional sessions for port stakeholders of West and Central Africa.

‘The EnMAR project enhances maritime security and safety in the Gulf of Guinea through promoting political dialogue, improving the coherence of EU initiatives, raising awareness of EU action, and strengthening the operational capacities of national and regional institutional partners.’

‘
This training has been organised as part of this last objective of ensuring a long-lasting impact through the development of internal capacity-building on port security,’ she said.

Captain James R. Quayson, General Manager Special Duty at GPHA, Headquarters, said security was paramount at the ports because without it, they could not exist and operate effectively.

He urged participants to utilise the knowledge gained and enhance security at the ports in their countries.

The Captain lauded the EU for the training, saying:’We appreciate whatever you’re doing in the domain, as such, we assure you that Ghana is home for training, security and anything you have to offer with regard to the maritime domain.’

‘There are a lot of activities happening in the domain which needs a big brother like the EU to help us minimise the negative impacts of such activities,’ he said.

Source: Ghana News Agency

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Three friends remanded in Enchi for robbery, rape


Three friends who allegedly robbed an illegal miner and raped his fiancée have been remanded into police custody by the Enchi District Magistrate Court.

They are Alex Obeng alias Power Money, 24, illegal miner; Ransford Osei Coffie alias King/Anointing, 29, driver; and Johnson Adu alias Black Nana, 24, gold buyer.

Obeng, Coffie and Adu are currently being held for conspiracy, robbery, and rape, but their pleas have not been taken.

A duplicate docket has since been prepared and forwarded to the Attorney General’s office for study and advice.

Detective Police Chief Inspector Joseph Kwadwo Agyare, Prosecuting, told the court presided over by Mr. Lawrence Buanor-Buer, that the complainants Stephen Amihere, and his fiancée, Christiana Mensah resided in the same apartment at Desueano.

He said the accused persons lived at Desueano and Abokyia all in the Aowin Municipality of the Western North Region.

On Tuesday January 2, 2024, at about 1:30 am, the accused persons armed with locally manufactured pistol and a
knife went to the complainants’ apartment to rob them.

Detective Chief Inspector Agyare said when Obeng, Coffie and Adu got to the premises, Obeng stood outside to provide the needed security so they would not be caught.

He said Coffie and Adu subjected Amihere to severe beatings, ordered him to surrender all his money, but he fell unconscious, and they tied his two hands with sellotape and sealed his mouth as well.

The two then rushed on to the complainant’s fiancée, tied her hands, and sealed her mouth with sellotape.

\Coffie was masked, while his counterpart Adu was unmasked forcibly had sex with her in turns, after which they made away with iPhone 6x, iPhone 11, Jordan sneaker, shirts, belt, handbag, wristwatch, gold detector machine and cash sum of GHS300.

Prosecution said after the accused persons had left, the complainant’s fiancée managed to untie herself and she raised the alarm which attracted residents within the area including the neighborhood watchdog committee chairman who is a witness in t
he case.

At the scene, the witness found an itel mobile phone, and he went through the call logs, found Obeng’s contact which subsequently led to his arrest.

Detective Chief Inspector Agyare said, when they questioned Obeng about the owner of the mobile phone, he indicated that it belonged to Coffie and he led the police to a Guest House at Abokyia where they were lodging but met his absence.

The police conducted a search in the room and found a black bag containing Ghana card and Access Bank ATM card belonging to Obeng.

They also found a voters identification card, Ghana card, passport and National Health Insurance card all bearing the name of Coffie and a mask.

Coffie and Adu were later arrested by some volunteers, and they handed them over to the police to assist investigation.

Further checks made by the police revealed that Obeng, Coffie and Adu were friends, and had earlier planned to rob the complainant because they claimed he had money.

Prosecution said Obeng lived in the same community as the c
omplainants, and he had been leaking information to Coffie and Adu about their movements.

Detective Chief Inspector Agyare said to execute the plan, accused persons rented a room in a Guest House where they have been lodging for the past three weeks.

Source: Ghana News Agency

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Beneficiaries of GLOWA’s AVID project appeal for its extension


The beneficiaries of the Global Action for Women Empowerment’s (GLOWA) Action for Voice and Inclusive Development (AVID) project have appealed to the organization for an extension of the project.

The beneficiaries, largely women, stated that the initiative helped them gain a lot of knowledge about good agricultural practices, which resulted in increased yields and improved income level.

They said the project had also empowered them to engage effectively in decision-making and governance processes in their communities and assemblies.

The beneficiaries who made the appeal during a press briefing organised by GLOWA to announce the end of its operations praised the improvements the project had made to their quality of life.

The project was carried out in Adaklu-Goefe, Adaklu-Tsrefe, Adaklu-Agblefe, and Adaklu-Aziedukope communities in the Adaklu District, as we as Sokode Ando, and Takla Gborgame in the Ho Municipality.

Togbe Sasraku IV, Chief of Adaklu-Goefe, said the initiative was exceptional and deserving
of commendations, describing it as a life-changing project that accelerated development and transformation in his community.

Delight Sesi, a beneficiary from Adaklu-Agblefe, stated that the project increased their entrepreneurial and marketing skills, as well as provided them with knowledge of product packaging, making their products to compete more effectively in the business environment.

She thanked GLOWA for the programme, which offered them professional assistance in optimal agricultural methods, resulting in increased yields and income levels.

Togbe Atiku VII, Chief of Takla-Gborgame, also praised GLOWA for its intervention initiatives that had advanced the community’s development, urging the community members to endeavour to ensure that the project was sustained.

GLOWA launched the AVID project last year in Ho Municipal and Adaklu District under the title: ‘We Matter! Empowering Rural Women and PWD constituents to take positive actions to participate actively in local governance processes for improv
ed livelihood.’

It aimed to empower rural women groups and persons with disabilities to become economically independent and actively participate in leadership and decision-making processes.

The 15-month project was jointly implemented by GLOWA in partnership with Ghana Federation of Disability, Volta Chapter, and Adaklu POWER Women’s Group, and funded by STAR-Ghana Foundation.

The project’s focus areas included building coalition and movement around key issues of access to public service and livelihood for underserved groups, advocating for access to information on government policies and programmes.

It also focused on strengthening spaces for dialogue between underserved groups and duty bearers, enhancing access to markets, storage facilities, and influence pricing for agriculture produce, and promote women’s access to land and improve their businesses and entrepreneurship skills.

Madam Ivy Bedy, Project Officer at GLOWA, stated that the project has provided the beneficiaries with a greater understandin
g of local government processes as well as various pro-poor interventions and services.

The project also assisted the beneficiaries to establish crucial contacts and networks with district assembly members and other community leaders, as well as develop better advocacy skills and a stronger voice in local governance issues, she said.

Madam Bedy stated that during the execution of the project, eight women were empowered to contest for the District Assembly election and six of them successfully won the election.

She said 40 rural women farmers were registered for the BizBox project being carried out by the Ghana Enterprises Agency, and some persons with disabilities were also supported to access the Disability Fund and be included in the district disability database.

Source: Ghana News Agency

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