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The Market Place with Daryl Kwawu (6-11-23)
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NewsTranscript
00:00 Hi, good afternoon. Welcome to the Marketplace. Coming up this afternoon, interest rates are
00:04 up for the 37th week running but government records 33.01% over subscription of Treasury bills.
00:11 Also coming up, Ghana Stock Exchange to suspend listing status of produce buying
00:19 company from November 8th. We'll tell you why.
00:26 And Aperol manufacturers raise concern about high taxes which are impacting on exports
00:32 as well as cost of credit.
00:33 That through the EXIM bank that will be open to look at ways of structuring
00:42 a better rate that will suit the industry.
00:48 This is Daryl Clark. Thanks for being with us. Details coming up.
00:57 Thanks for staying with us, everyone. Interest rates have gone up for the 37th week running
01:15 and that an increasing cost of borrowing by government in the future. According to the
01:20 auction results by the Bank of Ghana, the government recorded 33.01% over subscription
01:26 to the tune of 2.86 billion CED. Head of Trade and Art Republic Securities, Patrick Edamagama,
01:33 joins me on Zoom to update us on how the auction fared last Friday. So, Patrick, government
01:40 recorded an over subscription of 33% for its Treasury bills, but the concern interest rates
01:46 continue to go up. Yes, Daryl, good afternoon. Interest rates continues to go up. It's great
01:54 concern to everyone. However, we can see that there are some control measures coming in place.
02:01 We saw last week that they brought the initial pricing guidelines for the Treasury bill.
02:06 These are things they do for the bonds to control or cap interest rate, but now they've started
02:12 introducing that for the Treasury bill. So that gives us some assurance that it's about to turn
02:17 around. We've seen that in 91 declared at 29.97, which was lower than the 182 declared at 32.15,
02:30 which jumped by 47.12 basis points. We also saw increase in the 364, they hit 33.7%,
02:37 increasing by 27.74 basis points. All right. Well, I want us to shift to the capital market.
02:48 Interesting developments there. We are expecting that the Ghana Stock Exchange
02:51 would suspend the listing status of produce buying company. Explain to us what is going on.
02:58 Well, the listing rules with regards to how companies come onto the exchange are very clear.
03:05 And the listing rules also gives consequences for not meeting the listing rules. And one of
03:12 these is suspension and also compulsory delisting. So in this case, we've seen that the information
03:21 that was given is that they did not meet the timely disclosure, which is a major requirement
03:27 of the listing rule. And you know, with this information coming in, it also affects the
03:32 marketing one way or the other. We know our market is already having some great concerns about how
03:38 efficient the marketing is. So when that information coming from the companies are actually
03:44 priced in the prices we see. So this coming up, having not to release information to share with
03:53 us from September last year to date, it's actually a good call by the exchange to actually
03:58 hold all companies accountable. Do we know what is going on at PBC? Why is it difficult for them
04:05 to share such an important information? And is this just the PBC that has delayed with the
04:10 submission of financial results? Well, it's hard to tell what is going on at PBC now,
04:17 but I know the Council of the Ghana Stock Exchange always gives them a time
04:21 to explain why they are not disclosing those financials. And with that time,
04:26 companies have a chance to ask for extension when there is a need for them to ask for that.
04:34 But in this case, it's almost like a year since an information about their financials, that's their
04:39 September, that's end of year for them. End of year information coming out to the market is
04:45 really a year. So the exchange was really lenient on this call. But generally, how has the produce
04:52 buying company fared on the bears? It's not been trading regularly. We once see some trades go
05:02 through. The exchange is still getting companies like PBC, CPC and other companies that don't see
05:09 a lot of trading happen, go through these trading processes where investors get interested. But
05:17 you know, for investors, if the information is not coming to them, they are not able to
05:21 read the company, understand the progress of the company. They will not actually show interest in
05:28 investing in the company. We've seen that they've been battling with loss over the years. Their last
05:33 financial that they released was dated June 30th. It was their third quarter financials and it was
05:38 also showing that they had a PAT recording loss. So this is a company that has been struggling
05:43 over the years, but at least let the information get to investors so they can be able to plan ahead.
05:49 Is there any way PBC can escape being suspended before Wednesday?
05:55 With this circular coming out, I doubt if there's any way, but there's a way they can
06:04 avoid being delisted totally. Because this suspension is a process towards delisting
06:11 totally. So if they can work to bring their finances in place and also disclose the information
06:17 that's being required by the exchange, then there's a way they can come out. But as of now,
06:23 this time that the decision is made and a date has been given, I doubt if that's possible.
06:32 Talk to us about what the implications are for the company if it is suspended and
06:38 for people who are investors who are watching this wondering what's going to happen next wise.
06:44 Well, this suspension means the exchange will not supervise trading of PBC shares. So you know,
06:52 the exchange provides a place for both buyers and sellers to meet to transact. But if you are not
06:59 on the exchange or you are suspended or trading has been suspended, it means the exchange is not
07:04 going to supervise that. That's going to actually affect investors who desire to buy or who desire
07:11 to sell. There could be buy and sell happening, but that will not happen through the exchange
07:16 platform. Okay. And what would it take to get them listed again after a potential suspension?
07:25 I think they will have to make their case to the exchange, the council, the council will have to
07:29 listen to their reason for not disclosing information timely. And they will have to
07:35 make a case to the council and be heard. If they are heard and their case is valid,
07:41 then that can help their situation. Well, while we talk about the stock market,
07:45 I want to talk about Equibank and Carbank, what's happening with them as well,
07:50 because we expect that this week, they will continue the upward trend on the Ghana Stock
07:55 Exchange due to strong demand for their shares. What is the anticipation on the market?
08:00 Well, now on the stock market, we've seen their interest mounting in some stocks like Carbank and
08:07 Equibank. We saw them moving, jumping 10%, Carbank jumped 10% last week, Equibank jumped about 5.08%
08:15 in price last week. And this trend is expected to continue. There's increasing demand for stocks
08:22 like Unilever, Farm Milk as well. However, on the sell side, we've seen Equibank Transnational and
08:31 Enterprise Group Limited being heavy on the sell side. We expect this trend to continue
08:36 to the end of November. Anything else you have to look forward to this week?
08:41 Yes, this week on the money market, the government is expecting to raise 3.1 billion.
08:47 After a very long time, this is one of the highest they are going to raise.
08:52 This is expected to retire short-term maturities, about 2.8 billion Ghana cities. We expect interest
08:58 rate to follow the same trend, but now with a capping, we are eager to see if government will
09:04 bring the rates down. All right, Patrick Edema Gamatha,
09:08 thank you so much for joining us and giving us those analysis there. Appreciate it.
09:14 The Association of Ghana Apparel Manufacturers has expressed concern about high taxes in export
09:20 facilitation of garments. According to President of the Association, Nura Salifu, this is taking
09:25 a toll on operations. She's calling on the Ex-Im Bank to support the association in its quest to
09:31 take advantage of the African Continental Free Trade Agreement. Salifu spoke to Joy Business
09:36 at the launch of an action plan by garment manufacturers.
09:39 Ghana's textile industry is mainly concerned with the production of fabrics for use by the
09:45 garment industry and also for the export market. The sub-sector is predominantly cotton-based,
09:52 although the production of man-made fibers is also undertaken on a small scale. President for
09:57 the Association, Nura Salifu, said the association's partnership with the International Labour
10:02 Organization would bring about transformative change for the industry. She called for more
10:07 financial support to expand their operations. This is one of the industries that has the potential
10:13 to employ a lot of young people and to train a lot of the young people who may have a skill
10:19 in the industry or may not have a skill, simply because our training timelines are between three
10:26 to six months. Access to finance is one of the major challenges that we have. I think the interest
10:32 rates are pretty high and we're hoping that through the Ex-Im Bank that they'll be open
10:39 to negotiating better rates. Ex-Im Bank has actually led the way, let me say that, but
10:47 some of the other private banks to look at ways of structuring a better rate that will suit the
10:55 industry. There was also a launch of a website for the association at a workshop to increase
11:00 digital presence of the sector and sell the story of Ghana's Boyan's garment sector.
11:05 James Eshen's report for Joy Business. And thanks for staying with us here on the marketplace.
11:12 My name is Darrell Kwao. We are moving on to some other stories for you. The Chartered Institute of
11:17 Bankers Ghana is 60 years and as part of its anniversary celebration, it will hold the
11:23 National Banking and Ethics Conference on the 14th of November. The event will witness the
11:29 unveiling of the Ghanaian Banking Industry Ethics Certification and the newly designed curriculum of
11:35 the institute's main flagship program. The institute also holds its 13th induction ceremony. The theme
11:41 for this year's conference is "Redefining Professionalism in Banking through Ethics".
11:46 In studio with me is Robert Jetto, Chief Executive Officer of the Chartered Institute of Bankers
11:51 Ghana. So happy to have you in the studio once again. It's been twice this year, right? All right,
11:58 so I wanted to talk about the theme for your 60th anniversary celebration. It's "Redefining
12:02 Professionalism in Banking through Ethics". So we're redefining professionalism. That means
12:09 there's something that we need to, you know, work on in terms of professionalism when it comes to
12:15 banking. It may not necessarily be right, but I mean, what does the theme mean for the Chartered
12:21 Institute of Bankers? Thank you very much, Darrell. I think this is an important conference and a
12:27 theme, as you rightly said, is "Redefining Professionalism in Banking through Ethics".
12:32 And see, banking is about trust. And if you think about ethics, ethics is about sustainability,
12:40 doing the right thing when no one is watching. And as an institute, our mandate is to promote
12:45 banking education and to regulate the practice of banking in Ghana. What does that actually mean?
12:51 That means developing trusted professionals for the banking industry. And if you think about
12:56 industry, quite a number of things have happened recently. If you think about DDP or think about
13:02 the banking sector cleaners, all of which have kind of impacted confidence. People are wondering
13:08 if they can trust their banks or the banking professionals, whether they can even trust them
13:12 to say the truth about it. Well, if you make reference to the Bank of Ghana 2022 fraud report,
13:20 it actually points to the fact that there are still some people in banking who are involved
13:26 in some fraud and things like that, which I think for us makes the case very, very clear for us to
13:32 deliver on our mandate, which is certification and making sure that everybody working in banking has
13:38 the appropriate qualification and certification. Like I said, it's about trust and we need to
13:43 restore that trust. And that's why we are putting ethics high on the agenda of banks
13:47 and bankers and society as a whole. Okay. So talk to us about the institute's mission to fully
13:53 develop the academic and professional potential of practitioners in the financial services sector.
13:58 How has that evolved over the past 60 years? Sure. Our journey over the last 60 years has
14:04 been quite an exciting one and of course an evolving one as well. And you're right,
14:09 our mission is very clear and we've been very focused on developing ethical bankers,
14:14 chartered bankers for the industry. We have launched a number of things recently, I'm sure
14:21 if you're following, you see that we've launched the Chartered Banker for Executive Leadership,
14:25 which is really targeting senior managers and people in key management positions and at the
14:31 board level to become even more professionals. Then of course we have the certification in ethics,
14:38 which we have co-developed with the Central Bank of Ghana, which we'll be launching at a conference.
14:44 But we've also redesigned our curriculum, the Chartered Banker qualification to make it even
14:50 more relevant, more consistent with our times, but also futuristic. So we are putting a huge focus on,
14:58 if you think about it, on ethics, on customer centricity, on digital. And these are key areas
15:04 of focus for us, even in the digital age. So from our aspiration and mission perspective,
15:11 we are delivering on the mandate, but there's of course a lot more to be done.
15:16 Yeah, I mean one of the highlights of your 60th anniversary celebration, and you mentioned it,
15:22 is the unveiling of the banking industry ethics certification. What role does that play in
15:29 redefining professionalism in the banking sector? Sure, so at the conference the focus really is to
15:36 bring the conversation around ethics and banking to the fore. And we are very excited to have some
15:42 really important speakers coming through. But we will be launching the ethics certification
15:48 program, like I said, which we've developed in conjunction with BOG, or Bank of Ghana for that
15:53 matter. And we think that people in the industry, or in any other industry, should be competent,
16:00 and should have the qualification and the certification, but most importantly should
16:05 subscribe to a code of conduct and ethics that we can hold them to. And that's really very important,
16:12 and for us going forward that's a huge area of focus, and ensuring that everybody working in
16:18 the industry has the appropriate qualification and certification, and most importantly are making
16:23 the ethical judgments, and also resolving the ethical dilemmas that they face. And we are
16:28 supporting with the framework, the frameworks that will help them make the right decisions,
16:33 and ensure that even when no one is watching, they're doing the right thing. I want, I mean you
16:38 mentioned, I want to ask you again about the newly designed curriculum, and how that is also going to
16:44 promote good ethics in the banking sector. Yeah, so if you look at the new curriculum, which is a
16:50 chartered banker qualification, it really pulls focus at every level, from level one to the final
16:57 level on ethics and sustainability. And if you look at the competency framework, it's really saying
17:04 everybody in banking must have at least the fundamentals, the fundamentals in ethics,
17:08 and that's something that we will regulate, that's something that we'll monitor and ensure
17:12 that everyone working in the banking industry has that. But most importantly, it's really ensuring
17:19 that we are not just having the qualification, but also people have the continuing professional
17:24 development to ensure that they are doing the right thing all the time. Yeah, 60 years is a
17:30 long way, if you're a human you'll be retiring. What are your future plans? Excellent question.
17:38 I think 60 years has been a journey for us, but the next 50 years and 60 years may be even more,
17:44 you know, defining for us. And so as we indicated, we want to be the institute of excellence
17:50 for developing trusted professionals, and every single individual in the banking industry must
17:56 have a certain qualification and that is offered by the Chartered Institute of Bankers Ghana,
18:02 so that we can properly ensure the sustainability of our industry, but also ensure that we are
18:09 developing the right human capital for not just the banking industry or the financial services
18:14 sector, but also our country as a whole. All right, this is not part of the script,
18:20 I'm going to ask you anyway. The 2024 budget is coming up and I'm sure the banking industry
18:25 has got some concerns as well, so what will you be looking forward to as the finance minister gets
18:31 ready to present the 2024 budget? Well, that's an important question and I think if you think
18:37 about the banking sector, we are the catalyst for economic development and any budget or economic
18:44 policy of government is so important, it's one that we certainly would address our minds to
18:50 very carefully. So in terms of the budget, we certainly expect that the macroeconomic indicators
18:57 will trend in the right way, because that then helps banks to strategise, but also plan and have
19:04 some key performance indicators which our stakeholders are very, very interested in.
19:08 Of course, beyond that is just ensuring that there's certainty, and I know that as an industry
19:16 there has been some uncertainties in the recent past, so that certainty and clarity will be very,
19:22 very important for the financial services sector going forward. Yeah, and I know, I mean it's been
19:26 a challenging year for the banking industry, and again I just want to find out when it comes to
19:34 recovery, whether you think that is more on the positive side right now? Correct, so I think,
19:43 you know, if you look at the exit numbers for 2022, you know, banks took huge impairments,
19:49 right, but if you then look at the first quarter into the second quarter performance, things we are
19:54 beginning to see... Yeah, I saw those third quarter numbers... But even most importantly, you see that
19:58 confidence is coming back, and the way to measure that is really looking at the deposit growth of
20:03 various banks, and almost all the banks are trending in the right direction. Yeah, I was going
20:09 to point out that the third quarter numbers was a good showing for some of the banks, and so yeah,
20:14 that's good news. All right, Robert Jatt, the Chief Executive, Chartered Institute of Bankers,
20:18 appreciate your time, and we'll be there to cover the 60th anniversary of the Chartered
20:23 Institute of Bankers, and congratulations on your anniversary. Thank you, thank you very much.
20:29 14th November. Correct. All right, you're watching the Marketplace, turning to other stories for you.
20:35 Subscribers of GOTV will soon have access to stream GOTV contents away from home on smart
20:41 devices. Head of Corporate Communications at Multi Choice Ghana, Niyama Dagadu, explains the move is
20:46 to make available good local offerings to customers. He spoke to Joy Business at the premiering of his
20:53 new local epic series, DAP, Nanakoto. Nanakoto will be Ghana's first epic. We've seen such stories,
21:02 such as Game of Thrones from Europe and the rest of the world, but this will be the first time that
21:08 we have seen a Ghanaian story inspired by the rich culture of Ghana. And this story is inspired from
21:15 true Ghanaian history. So the history of the Dentra, their relations with the Akwamu, their
21:21 relations with Ashanti, that's what inspired the story. And to be able to produce such an epic,
21:27 which will air daily on Akwamu Magic channels on DSTV and GOTV, we had to bring in some historians
21:34 to help us to correct the story so that we kept with the true story. So the idea essentially is
21:40 one for Akwamu Magic is a 100 percent Ghanaian channel whose objective is to try and project
21:45 African and the Ghanaian, the rich Ghanaian culture and make it available into the rest of
21:50 the world. So as we speak, this show will start airing on Monday evening. It will air every day,
21:56 Monday to Friday on the Akwamu Magic channel. If my memory serves me right, I think it's from 8pm
22:03 every Monday to Friday on the Akwamu Magic channel. And we urge our Ghanaian fans to watch.
22:08 Truly, we do have some great stories here in Ghana. And as Akwamu Magic, we promise that
22:16 from now all the way to April 2024, every month there will be a new title coming on Akwamu Magic.
22:23 For us, we always have a big Christmas. And for our GOTV customers, there's an exciting bit of
22:29 information coming for you. From the 1st of December, our GOTV customers will now be able
22:34 to watch GOTV on the go. Our DSTV customers have been able to do it over the last 30 years.
22:40 And finally, we're bringing it to our GOTV customers. So now they'll be able to stream
22:44 their GOTV content away from home on a smart device.
22:47 Also in the news, Shikanik Auto Hub and Toyota Ghana have organized a workshop to equip women
22:52 and the public on technologies associated with some of Toyota's vehicles. According to CEO of
22:57 Shikanik, Nanefua Saweduse, it is critical for women to know the basics of car maintenance
23:03 and emerging technologies to prevent vulnerability on the road.
23:09 The Shikanik workshop focused on building the confidence of women on the roads. The participants
23:14 were taking through theory and practical lessons to help enhance their mobility. Nanefua Saweduse
23:20 is chief executive of Shikanik Auto Hub. She likes to refer to herself as a Shikanik. She said it was
23:27 important for women to understand the basic features of vehicles to improve their mobility.
23:31 She said it was important for women to understand the basic features of vehicles to improve their
23:36 safety and driving experience. This workshop is to train young ladies and men about the basics of
23:43 vehicle maintenance. The basics, very basic. So instead of being vulnerable on the highway,
23:49 young lady, know how to change your tires yourself. That is good. Gentlemen, if you know why you have
23:55 to use coolers instead of water, that is good. So this is just to share knowledge
24:00 on vehicle maintenance. As many people who request for this, if we get more sponsors to support us,
24:06 yes, we are willing. So the team, Shikanik Academy, is ready to train as many young girls as possible.
24:13 Public relations officer of Toyota Ghana, Suzie Ansamp, reiterated the company's commitment to
24:18 helping customers with quality vehicles and also ensure their safety on the road.
24:22 Toyota Ghana is a company that believes in the safety of the road.
24:28 Toyota Ghana is a company that believes in transfer of knowledge. We believe that we don't just sell cars.
24:36 We want to get people to understand the cars they drive. Our vehicles are built with cutting-edge
24:42 technology. Safety features are incorporated. But what's the use of these features if people do not
24:49 understand how to use them? Shikanik, with this workshop, she seeks to help people to understand
24:59 basic things that are underneath their bonnet. For instance, the basic fluids that you have,
25:05 how to check your fluids, when to do your servicing. And we believe that since we are a car company
25:12 and we want to empower people to have the confidence to drive their vehicles, why not
25:19 we decided to come on board to offer our newly launched facility, which is the Toyota Ghana
25:25 Legon branch, because we associate ourselves with quality, durability and reliability.
25:31 The workshop was themed "Building Confidence Under the Hood."
25:34 And that's our program. Thanks for watching. More news on our website, mydrawonline.com/business
25:41 We leave you with today's Money Lab episode.
25:46 Hello, welcome to Money Lab. My name is Kofi Poli, Chief Operations Officer of People's Pension
25:58 Trust. We continue our pension debates on Money Lab. In our previous episode, we gave one of the
26:04 reasons for having a pension as life expectancy. Today we are going to look at the next two.
26:11 One is rising cost of living. Globally, cost of living is rising, which means that in our old age,
26:20 you still need to spend. And that's why it's important that we plan for our old age to have
26:26 a continuous income, even when we are not working. The other is lack of family support.
26:32 Lack of family support, what it means is that in our old age, we may not have immediate family
26:39 or extended family to support us financially. And therefore, there's a need for us to plan
26:44 for our financial security in our old age. Thank you once again for being with us,
26:51 and hope to see you in our next episode.
26:54 [Music]
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