Ghana Moves For Beneficial Owners Disclosure

By Edmund Mingle

Moves for the development of Beneficial Ownership Register for the extractive sector, which will unveil the actual individual owners of companies, are underway.

President Mahama

The introduction of the Beneficial Ownership Disclosure (BOD) Register, is part of efforts by the country to ensure transparency and fight corruption in the extractive sector.

Currently, the government is collaborating with the Ghana Extractive Industries Transparency Initiative (GHEITI), the Ghana Open Government Partnership, Financial Intelligence Centre and other agencies, to fashion out a roadmap for the development of the Registry by 2017.

M. B Abdul Razack, National Coordinator of GHEITI, explained at a media workshop on the 2014 GHEITI Report on oil and gas at Dodowa, that the roadmap would determined how Ghana’s BOD should be rolled out.

Beneficial owners are the actual individuals who control or enjoy the benefits of companies, although the companies may have legal identities.

When it becomes operational, the BOD registry, which is increasingly being adopted by developed countries, would identity the true owners of companies so as to check tax evasion, money laundering and corrupt practices through the use of dummy and anonymous companies.

The register, which would be hosted by the Registrar General’s Department, is expected to contain personal identity and details of the beneficial owners of companies in the extractive industry.

It falls in line with government’s determination to fulfill its commitments to the global inter-governmental Financial Action Task Force to fight money laundering and the financing of terrorism.

President Mahama is expected to give an update on the BOD regime at an anti-corruption summit in the United Kingdom next month.

According to Dr. Steve Manteaw, Co-Chairman of GHEITI, although Ghana’s effort has been good, there was need to speed up the process to meet the international commitments in transparency and anti-money laundering.

He was unhappy that the Petroleum Exploration and Production Bill, which is currently before Parliament, has no provisions on BOD, a situation he described as worrying.

Renewed efforts for the BOD around the globe comes in the wake of the “Panama Papers” leak, which revealed concealed investments through offshore financial structures, linked to influential people around the globe.

Norway last year joined Denmark and the United Kingdom—the first country to commit to a public registry of beneficial ownership information back in October 2013- as the latest countries to introduce the BOD legislation and systems to ensure increased financial transparency and tackle the abuse of anonymous companies.

The European Union also finalized a measure in May 2015 that, among numerous provisions, required all EU member-states to create central registries of beneficial ownership information for companies established in their countries.  

While the EU directive doesn’t explicitly require states to make these registries public, it allows them to make the information public if they choose, and it does require them to at least make the information available to people with a “legitimate interest” in the information, with the aim of fostering accountability between investors, citizens, and governments. 

Keep The Economy On Track......President charges new Governor

By Edmund Mingle

President Mahama presenting the scroll of office to Dr. Issahaku

President John Mahama yesterday swore into office the new Governor of the Bank of Ghana, with a critical charge on him to keep the economy on track, irrespective of the pressure the November elections will exert on the economy.

“The economic prospects are very good, and it is my hope that you work closely with the Finance Minister to ensure that both the fiscal and monetary policy continue to be on track,” the President told Dr. Abdul-Nashiru Issahaku, at the Flagstaff House in Accra

President Mahama said through bold initiatives, as well as support from the International Monetary Fund, the economy was back on track, and that the trend needed to be sustained despite 2016 being an election year, which is often characterised by overspending.

“It is going to put a lot on your shoulders and that of the Minister of Finance, especially in the era of zero central bank financing for the national budget,” he stressed.

President Mahama, who administered the Oaths of Office, Secrecy and Allegiance to the new Governor, also asked him to team up with the Minister of Finance, to effectively manage the monetary and fiscal regime.

“I believe that working together on monetary and fiscal policies will ensure that the economy grows even more resilient,” he said.

The President, who also swore in the second Deputy Governor of the Bank, Dr. Johnson Asiama, congratulated the Governor for his ascension to the position, and urged him to serve with integrity and trust.

He described the post of governor as a “great responsibility,” but expressed confidence in Dr. Issahaku’s ability to deliver, and assured him of his fullest cooperation and support.

President Mahama in a pose with Dr. Issahaku (right)
and Dr. Asiama (left) after swearing them into office

Dr. Issahaku, responding, thanked the President for the opportunity to serve, and noted that he was mindful of the high expectations of his mandate.

He admitted the management of the monetary and fiscal policy in an election year as a challenge, but expressed his determination to succeed in keeping the economy on track.

Dr. Issahaku said he was happy for the assurance from the Minister of Finance that the government would not spend more than budgeted for the year, saying that would help in keeping the economy in check.

“If we were not able to do it in the past election years, we will do it this time,” he said.

Dr. Issahaku gave the assurance that his outfit would work to reduce inflation from the current 19.2 per cent, which is the highest since 2009, saying he was very mindful of the need to sustain the macroeconomic stability to boost the rapid growth of the economy.

According to him, various economic indexes show positive outlook for the national economy, and indicated that the country needed to continue pursuing the macroeconomic measures and the IMF programme to achieve more success.

“I can assure that I will work with all stakeholders, including government agencies and private sector, to deliver the desired results,” he said.

Dr. Issahaku, then second Deputy Governor, was appointed Governor last month following the early retirement of his boss, Dr. Kofi Wampah.

Dr. Issahaku is an International Development Economist with several years of experience in economic policy management and development, having worked with reputable international and local institutions including the World Bank as a Senior Public Sector Specialist; the African Development Bank as a Principal Governance Expert; the United Nations Economic Commission for Africa as a Development Management Officer; the Canadian International Development Agency as a Socio-Economic Advisor and Project Coordinator; and the National Development Planning Commission, Ghana as a Senior Planning Analyst.
Before his appointment as Governor, he was the Second Deputy Governor and Executive Board member with oversight responsibilities of nine departments including Economics, Statistics, Finance, Legal, Banking Supervision and Financial Stability.

He was the Chairman of the Investment Management Committee of the Bank and a member of the bank’s Monetary Policy Committee.

Morocco Pushes For Regional Integration

Edmund Mingle

Back from Dakhla, Morocco

The King of Morocco, his Majesty Mohammed VI has scaled up Morocco’s campaign for intensified Africa regional integration, as he calls for more south-south cooperation.

“South-South cooperation is not an empty slogan, nor is it an appendix of development policies-one that is restricted to mere technical assistance.

King Mohammed

“South-south cooperation is the result of a homogeneous strategic vision designed to promote to the development of States and meet the needs of African populations,” King Mohammed said.

In his message at the opening of just ended Crans Montana Forum held in Dakhla, Morocco, the King urged other African governments to actively pursue projects in the spirit of regional cooperation.

According to him, south-south cooperation in Africa, revolves around the potential, skills and expertise of each African State.

“For this reason, Morocco has made south-south cooperation one of the pillars of its foreign policy as well as a determinant of its international action.

“It therefore seeks, on its own as well as jointly with partners and sister nations, to implement concrete programmes in the targeted areas to achieve measurable outcomes in terms of economic growth and the well-being of the populations of the countries in the south in the economic, social, cultural, environmental and religious domains,” he said.

The Crans Montana Forum, which was attended about a thousand participants from 131 countries and representatives of 27 regional and international organizations, had the general theme, “Africa and south-south cooperation: towards a better governance for sustainable economic and social development.”

It had the aim of discussing pertinent issues hindering regional integration, as well ad building partnerships among countries and institutions for cross-country collaborative initiatives towards achieving sustainable development.

King Mohammed lauded the objectives of the conference, indicating that it has helped to highlight the need for Africans to work together.

“This important international event helps to remind the world that there will be no future without a cohesive, solidarity-based Africa standing tall and proud.

Africa, he said, owes it to itself to become a key partner in international cooperation mechanism, and not just a mere object of this cooperation or a prize others vie for.

“Africa should no longer be perceived as a vulnerable continent, but a driver of progress,” he said, and urged his colleague African leaders to pursue sustainable development.

He reminded his colleagues that remained the responsibility of States to champion forward looking plans and to strive to implement them through determined action and structural projects.

More importantly, he noted the need for the citizenry to accept and own development projects, explaining that however ambitious public policies may be, they would remain fragile if not embraced by citizens and civil societies.

“This is the essence of sustainable development. To be robust and sustainable, development must be driven by a vision shared by all stakeholders in society,” he stressed.

Touching on developments in Morocco, he expressed his government’s commitment to the development of the country’s Sahara region, including Dakhla.

Describing the region as so dear to him, the King noted that the development model crafted the region was yielding dividends towards building the region into an economic hub to benefit Africa.

“We seek to bring our three northern provinces into a level of development that will enable them to fully play their role as an African economic hub, and a bridge between Africa and Europe, the Arab Maghreb and the Sahel region.

As part of the development plan, the Moroccan government has launched major projects in the region to stimulate growth, provide job, enhance cultural expression, uphold human rights and protect the environment.

According to him, the projects are expected to support the productive sectors such as agriculture, sea fishing and eco-tourism, while enhancing land, air and sea transport networks between the southern provinces and the Kingdom’s other regions on one hand, and between the region and other African countries, on the other hand.

Special attention, he said, has been given to the social sector through initiatives such as implementation of projects to improve the quality of education as well as health and socio-economic services.

SAILING TO CASABLANCA...... In search of an African Shipping Line

Edmund Mingle

Back from Dakhla, Morocco

The absence of an African Regional Shipping Line will continue to negatively affect regional integration efforts and intra-African trade.

And the shipping line, which is urgently needed to support the economies of African countries, and optimize opportunities in the maritime industry, can be built through the collaborative effort of all African countries.

This is the conclusion reached at an international forum of experts in the maritime industry at the just ended Crans Montana Forum held in Dakhla, Morocco.

The forum on maritime, which was part of panel discussions held onboard a cruise ship, Grand Navy Vessel (GNV) Rhapsody, while sailing from Dakhla to Casablanca, in Moroccan waters, had the sub theme, “Improving the maritime industry’s global impact on the African economy.”

The maritime forum in session on the GNV Rhapsody while sailing from Dakhla to Casablanca

The Crans Montana Forum, which was attended about a thousand participants from 131 countries and representatives of 27 regional and international organizations, had the general theme, “Africa and south-south cooperation: towards a better governance for sustainable economic and social development.”

Participants at the maritime forum, which included managers of sea ports and shipping organisations, as well as policy makers, business leaders, members of academia and economic think tanks across Africa, were unanimous in their call for a continental shipping line, without which African would continue to exploited by vessels from other continents especially Europe.

The participants believed that in view of the fact that all the national shipping lines which were vibrant few decades ago have collapsed, except a few one such as Ethiopia and Kenya which are also limping, there was the need for regional shipping fleet that help to reduce the current high cost of maritime transport.

 They indicated although Africa has the highest freight, it remained more expensive to ship cargo from one African country in the south to another in the north, than to a location in Europe, due to the fact that European vessels have to be used.

“Africa needs to rebuild its fleet,” said Adamou Saley Secretary General of the Union of African Shippers Councils.

According to Mrs. Cisse Fatoumata, Director General of the Guinean Naval Company, none of the top 20 shipping companies operating in Africa, belong to Africa, a situation which has contributed to the highest cost of shipment for Africans.

“If we really want to do business in the spirit of regional cooperation and integration, then we should be thinking of our continental shipping line,” she said.

Although the participants admitted that the cost of building a shipping line was too huge for any single country to handle, they believed it can be done through regional collaborative effort.

Mohammed Margaoui, President of MICG International Consulting Group, believed governments could marshal resources from their private sectors for the continental project which would be of immense benefit to the region.

The participants sailed on the GNV Rhapsody from Dakhla to Casablanca 

“Africa has billionaires who can be mobilised to support the project, and be assured of the safety of their investment,” he noted, adding that this could be done “in the spirit of regional integration.”

Mrs. Naa Densua Aryeetey, Head of Shipper Services at the Ghana Shippers’ Council, for her part, indicated that Africa has the needed human resource capacity for the maritime industry, and the availability of national and continental shipping lines could provide jobs for many graduates in the sector.

Mrs. Aryeetey, who is also the Africa Director for the Women’s International Shipping and Trading Association, was confident that many of the investment and job creation opportunities in the maritime industry could be harnessed through an effective regional collaboration.

Apart from the quest for a regional shipping fleet, the forum also discussed measures for improvement of hinterland connections through the use of multi-modal sea, lake, rail and road transport systems.

New challenges for port development were also identified with the objective of linking ports with rail to serve landlocked countries in the interest of regional integration.

Ghana, Ethiopia pledge to spearhead Africa's economic emancipation

By Edmund Mingle

President Mahama welcoming PM Desalyegn to the Flagstaff House

The governments of Ghana and Ethiopia have agreed to spearhead the campaign for economic emancipation of the African Union, pledging to work together with the same zeal the characterized the independence era.

In that regard, they pledged to translate their strong political ties into enhanced economic partnership for the benefit of the people of the two countries and the continent in general.

President John Dramani Mahama and the visiting Ethiopia Prime Minister, Mr. Hailemariam Desalegn, expressed the commitments of their respective countries to work together, at a State dinner held at the State Banquet Hall in Accra on Thursday, in honour of the Prime Minister and his delegation.

Although the two leaders were happy about the dividends from the friendship of the two countries, they believed more could be done to optimise the opportunities in the economic, social and political sectors.

According to Prime Minister Desalegn, it has been nearly 60 years when Ghana launched the first wave of independence for Africa, and since then Africa has attained political liberation, but expressed regret that “we have not yet achieved economic liberation and a peaceful united Africa.”

“Unless we complement the political gains with economic prosperity, we cannot realise the vision of Pan Africanism.

“Regional Cooperation is not an option, but a necessity,” he said, stressing the need for Africa to work together.

He explained that Africa, which is now referred as “rising continent,” and no more the “dark continent,” has the capacity to build its economy and become self-reliant.

“We need to seize the opportunity to strengthen the success stories across the continent,” he said.

He was optimistic that Ethiopia would work with Ghana to lead the economic development of the region.

“Both Ghana and Ethiopia were leaders in the de-colonisation of Africa. We remain champions of Pan Africanism.

“We have the capacity, the willingness and the commitment to continue to provide leadership to tackle the challenges we face today as a continent,” he said.

Touching on the ties between the two countries, the Prime Minister described Ghana as a “dependable ally,” and expressed the commitment of Ethiopia to improve its economic relationship with Ghana.

“The level of investment and volume of trade between our two countries do not reflect our excellent political relations,” he said

The two leaders sharing some thoughts at the dinner

He therefore, called for more joint ventures and investment partnerships between Ethiopians and Ghanaians, saying “we look forward to working more closely with Ghana.”

President Mahama, proposing the toast earlier, lauded the visit of the Prime Minister, which is the second by an Ethiopia leader after Emperor Haile Selassie in 1970.

He agreed that not much had been derived from the economic partnership between the two countries, and expressed Ghana’s commitment for a strong economic cooperation.

He recalled a signing of the general cooperation agreement between the two countries in 2014 to provide a framework for cooperation in some 14 areas of interest including tourism, agriculture and trade.

“We need to work together to ensure that these arrangements translate into joint projects and programmes that would enrich the lives of our citizens,” he said.

The President commended the government of Ethiopia for the sustained socio-economic progress in that country describing that country’s economic growth, effective infrastructure and transport network system, as worth emulating.

“Ethiopia’s sustained double digit economic growth and rapid transformation demonstrates how far visionary leadership can go when supported by a united, disciplined and determined people.

“We shall keenly follow your progress as you implement the second phase of the growth and transformation plan which is designed to lead Ethiopia into middle income status by the year 2025.

“It is an example for which we draw inspiration as we in Ghana similarly strive to implement our long term development plan,” he said.

On the political front, he lauded Ethiopia’s contribution to peace and security on the continent and around the globe, and in that regard, declared Ghana’s support for Ethiopia’s bid for a non permanent membership of the United Nations Security Council.

He also declared Ghana’s support for the candidature of the current Ethiopia Foreign Minister, Tedros Adhanom Ghebreyesus, who is bidding for the position of Director-General of the UN’s World Health Organisation.

Prime Minister Desalegn, who is accompanied by his wife, Roman Tesfaye, and business delegation, held talks with President Mahama at the Flagstaff House in Accra yesterday before visiting the Touton cocoa factory in Tema as part of the visit.