Day: May 24, 2024

The government has officially received the draft Memorandum of Understanding from the Official Creditor Committee (OCC), Finance Minister Mohammed Amin Adam, has said.

‘The government, therefore, with support from our financial and legal advisors, will quickly review this draft agreement with a view to finalizing and signing the agreement with the OCC as soon as possible,’ he said.

In a monthly briefing addressed by the Minister of Finance, Dr. Mohammed Amin Adam, he said the government had achieved significant and good progress with Eurobond Holders in a constructive manner.

He noted that the government was operating under a complex set of constraints as part of the International Monetary Fund’s (IMF) Debt Sustainability Thresholds.

This, he said, formed the context and basis of discussions for a mutual understanding of the financial parameters with Eurobond holders.

The minister said the government had held several rounds of negotiations on proposals and counterproposals for the Eurobond Treatment and
had achieved significant progress.

‘This led to a series of restrictive discussions for about 3 weeks, just before the IMF Spring meetings, and it ended successfully on April 15, 2024, with very narrow differences.

Considerable progress is being made towards a constructive solution that would be acceptable to all parties. It is for this reason that we are rather confident and more optimistic that we can continue to work together on solutions that would deliver an acceptable compromise for all stakeholders,’ he said.

Dr. Amin said the government was determined to reach an agreement with bondholders and commercial creditors promptly on terms that were consistent with the IMF program parameters.

Source: Ghana News Agency

Following the heavy downpour days ago, the Tema West Municipal Chief Executive, Felicia Edem Attipoe, embarked on a familiarization tour to assess the impact of the rain on residents.

According to her, the assessment revealed that constructing drainage systems in the municipality is critical to addressing the flooding problem in the area.

Speaking in an interview with TV3, the Tema West MCE stated that her office, along with relevant stakeholders, will hold a town hall meeting with residents to educate them on the importance of not building houses on waterways.

“Yesterday, it rained heavily and quickly, so my team and I had to come and see; and as we’re looking, there are issues. Homes were flooded, so we decided to come and also talk to them, as well as see the impact of it,” Felicia Edem Attipoe said.

She added that, “There are some actions that we need to take immediately, such as the drainage. We’ll also have a town hall meeting and talk to them about how best we can all collaborate and do the work w
ell.

“They also have to understand that they are not supposed to build on the waterway,” the Tema West MCE stated.

She further mentioned that most of the houses were not built by experts and some were also erected without permits on waterways.

Source: Ghana Web

The Made-In-Ghana Bazaar has an ultimate goal of facilitating the penetration of Ghanaian products and services into foreign markets using the network of Ghana’s Missions abroad.

Madam Mavis Nkansah Boadu, a Deputy Minister of Foreign Affairs and Regional Integration, in-charge of Finance and Administration, said that would invariably support the growth of Small and Medium-size Enterprises (SMEs) and provide them the impetus to expand their reach into markets including that of the African Continental Free Trade Area (AfCFTA).

She said this at the opening of the Third Made-In-Ghana Bazaar on the theme: ‘Promoting Made-In-Ghana Goods and Services for Economic Prosperity’, being organised by the Ministry of Foreign Affairs and Regional Integration, in collaboration with the Ministry of Trade and Industry.

Other supporting organisations are the Ghana Export Promotions Authority, the Ghana Investment Promotion Centre, National Chamber of Commerce and Industry, and the Association of Ghana Industries.

The Baza
ar seeks to promote Ghanaian products internationally, using the network of Ghana’s Diplomatic Missions.

It is a flagship programme of the Ministry of Foreign Affairs and Regional Integration, launched in 2018, following the Government’s decision to re-establish the Economic, Trade and Investment Bureau of the Ministry in 2017, pursuant to its economic and industrial transformation agenda.

The Bazaar brings together more than 150 exhibitors, and the products on display represent some of Ghana’s iconic offerings in the local and international markets.

The products on exhibition range from traditional crafts and artisanal works to manufactured products with cutting-edge technology.

Madam Boadu said the Ministry had executed its economic diplomacy agenda with its diplomatic missions abroad and partner institutions, by assisting Ghanaian businesses to access foreign markets with their goods and services.

It provides trade and consular advisory services to Ghanaian businesses and facilitates the resolution of
trade misunderstanding and conflicts between Ghanaian businesses and their foreign partners.

She reiterated that the agenda would be pursued to identify more markets for Ghanaian products and services.

‘It is in light of this that this Bazaar is being held with the view of compiling data on all our exhibitors and circulate same to Ghana Missions abroad as well as Diplomatic Missions accredited to the Republic of Ghana to help identify market for them and expand their reach,’ Madam Boadu said.

The potential of strategic economic diplomacy had become so evident today that States were seen increasing collaboration between State and non-State actors, increasing importance to World Trade Organisation (WTO) issues and the continuous negotiation of free trade and preferential trade agreements, she said.

Countries had also centered their diplomatic engagements around economic diplomacy where Ministries of Foreign Affairs were forging stronger ties with the private sector to attract the needed foreign direct inves
tment into their countries.

‘It is in this vein that the chosen theme for the Bazaar ‘Promoting Made-in-Ghana Goods and Services for Economic Prosperity’ is apt, as it is strategically designed to harness the innovative efforts of our micro, small and medium size businesses (SMEs).

Madam Boadu said the AfCFTA framework had provided a unique opportunity for intra-African trade and Ghana was at the forefront of implementing that agreement.

Aside hosting its Secretariat, Ghana had been able to trade with a few African countries including Kenya, Tanzania, Cameroon and South Africa under the AfCFTA Guided Trade Initiative (GTI), launched in October 2022 to pilot the implementation of the AfCFTA agreement.

Mr Kobina Tahir Hammond, the Minister of Trade and Industry, who opened the Bazaar, called on Ghanaians to patronise Made-In-Ghana products.

‘I encourage each of you to patronize these Made-in-Ghana products and services, not just out of functionality and price but also with a sense of pride and patriotism,’
he said.

‘By supporting your local businesses and artisans, you are not only satisfying your needs, but also investing in the local economy and strengthening as well as preserving our productive sectors for future generations.’

‘Every purchase made here today helps to sustain livelihoods and promote productivity and sustainability in our communities.’

Source: Ghana News Agency

Imagine you have a provision shop where you sell many products. Or you offer different services to your target market. Or you have tried a few side hustles and now have to choose where to put in more of your limited resources. Maybe you have an established business and must decide how the year’s business expenditure should go.

In all these instances, we have to decide whether and where to allocate extra resources, cash out or look elsewhere and divest.

BCG matrix basics

The BCG Matrix, also called the Growth-Share Matrix, emerged as a reaction to the need for a scientific technique to assess a corporation’s several product services. Bruce Henderson, the founding father of the Boston Consulting Group, added the matrix in 1970. It aimed to offer a smooth but effective framework for studying an enterprise’s product portfolio and guiding strategic selections.

The matrix classifies merchandise into four classes based on market growth rate and relative market share.

A high market growth rate means that produc
t/service lines grow rapidly. When your market grows, you must invest to increase capacity and marketing spending to secure your market share. A product or service with a high market growth rate might be attractive, but that consumes cash quickly.

Relative market share is just as the name says, with a significant emphasis on ‘relative’. How much of the market is not what we are talking about here – it’s how much of the market you have compared to the next guy, your colleagues and competitors.

The rule of thumb is to divide your market share by that of your largest competitor, giving you your relative market share. If you have a 5% market share and your biggest competitor has a 50% market share, then your relative market share is 5% divided by 50%, which comes to a 10% relative market share.

The four quadrants of the BCG matrix

Let us imagine the Relative Market Share on an x-axis and the Market Growth Rate on a y-axis. Visualise it. The high and low points on each axis create four quadrants that are:

hig
h relative market share, high market growth rate – we call this the STARS.

high relative market share, low market growth rate – we call this the CASH COWS.

low relative market share, high market growth rate – we call this the QUESTION MARKS.

low relative market share, low market growth rate – we call this the DOGS.

In reality, most new business products or services start as QUESTION MARKS because they have very little or no relative market share but usually operate in an environment with a high market growth rate. They have the potential to become STARS should they capture a bigger chunk of the existing booming market. Easier said than done.

If you’re wondering why most businesses do not start as DOGS, starting a product or service already means you have a meagre relative market share. Why would anyone also start a business in a market with a low growth rate? It’ll be much harder to get out of there. Beginning as a QUESTION MARK is ideal.

Almost always, question marks generate very little cash but will
need more cash than they generate to get them to be hopefully STARS or even CASH COWS. If not analysed and appropriately managed, after years of pumping money into them, QUESTION MARKS can degenerate into DOGS, and you may never recoup your investment.

But let’s assume everything went well. Your QUESTION MARK, that product or service with a low relative market share in a high market growth rate, now has a high enough relative market share to become a STAR. What does that mean?

It means you are selling more. It means that of all the customers who need that product or service, a good number of them come to you, which means you are generating high amounts of cash and revenue. It means you have a good thing going. But it would help if you spent some of that cash to maintain your current market share, fend off competitors, and grow!

You must recognise the STARS you have as an entrepreneur and nurture them. Successfully diversified companies always have some STARS in their portfolio to ensure future cash flows.
STARS are also always great for your brand image, serving as your flagship product – like the iPhone does for Apple. The iPhone is Apple’s STAR product. Per our definition, the iPhone has a high relative market share in its product category and a high market growth rate.

As time goes on, your STAR, managed properly, will beat off competition and maintain a high relative market share, but the market growth rate will decrease in time as well, making it a CASH COW – a high relative market share with a low market growth rate. It is called a CASH COW because while maintaining a relatively high market share, you spend less on marketing and investments as your revenue stagnates. YOU still own the lion’s share of the market, so the cash keeps pouring in.

Ergo, CASH COW!

An entrepreneur must milk all this cash (pun intended) from this revenue avenue and invest it strategically into STARS or new product lines, the QUESTION MARKS. CASH COWS make way more than they need to maintain their business positioning. So they
bring stability to a business. The iPad is a good example. The iPad dominates in relative market share for its category.

It’s so clear that compared to the STAR of Apple – the iPhone – much less investment goes into the iPad regarding marketing, development, etc. With a high relative market share, stagnated market growth rate and cash still flowing in from sales while expenditure on the product decreases, Apple has created the perfect CASH COW in the iPad.

But then there are the DOGS, like the iPod (now discontinued), with a low or declining market growth rate and a low or declining market share. I still have an iPod Touch. I get why Apple discontinued it. DOGS don’t make or break the business. They barely consume any money and barely make you any money, but as a business unit, it has enough cash within its business unit that can be put to better use. So they’re not fun, not attractive enough for finance, marketing or R andD to put their backs into it. But again, money is involved to keep that business unit
alive, which could be divested elsewhere.

The BCG matrix and your product lifecycle

We already stated that your product usually starts as a QUESTION MARK. The moniker is entirely appropriate since there’s the question of whether it will succeed.

As the product grows bigger and gains a higher relative market share, it becomes a STAR.

In time, every upward trajectory must plateau, permanently or temporarily. While holding on to that high relative market share, as the market growth rate slows, there is a corresponding decrease in expenditure on advertisement and other business development investments. At this stage, you get a CASH COW. You milk that money with very little work.

When you get too comfortable, a CASH COW will lose its relative market share; don’t forget that it already has a low market growth rate. You might then end up with a DOG – a product with a low relative market share and low market growth rate, but still worth something.

Criticisms and limitations of the BCG matrix

BCG Matrix assumes
that relative market share is the sole indicator of competitiveness. This assumption overlooks the importance of product first-rate, brand popularity, and purchaser loyalty. In the modern-day dynamic business, wherein innovation and differentiation play critical roles, excessive precedence on relative market share alone can be misleading.

There is also the argument that this rigid beauty oversimplifies the complexities of a dynamic business environment. In truth, products frequently fall perfectly under one quadrant; their strategic positions evolve. The static nature of the BCG Matrix no longer accounts for the fluidity of markets and customer alternatives.

The BCG Matrix also fails to account for out-of-door factors that could impact a product’s overall performance; it focuses on internal factors. For example, a surprising shift in patron behaviour or a disruptive generation can considerably alter a product’s prospects, rendering its BCG Matrix categorisation outdated. It also fails to consider the synerg
y among products and the strategic implications of the overall portfolio. It does not provide insights into how products within your portfolio complement each other.

Moreover, the BCG Matrix assumes that profitability is directly proportional to relative market share. While a high relative market share may be a contributing factor to profitability, it might not guarantee project sustainability. The model needs to touch on the costing, sale structure and pricing approach.

Future outlook

Despite its criticisms, the BCG Matrix is an essential tool for entrepreneurs and businesses seeking to navigate the complex terrain of product portfolio management. Its capacity to categorise products/services into STARS, CASH COWS, QUESTION MARKS, and DOGS provides a simple-enough roadmap for strategic planning.

The BCG Matrix is not a static photograph but a dynamic framework that should evolve with marketplace modifications and product life cycles. It compels businesses to constantly re-examine their portfolio, adapting
strategies to capitalise on rising possibilities and mitigating risks.

The emphasis on increasing relative market share and strategic funding allocation resonates with businesses and entrepreneurs looking for success, making it a versatile tool for organisations of all sizes.

Source: Ghana Web

Mr Hopeson Adorye of the Movement for Change has said his recent arrest and detention for the alleged publication of false news gave him fame and political exposure like never before.

The Director of Special Operations for the Movement for Change party was granted bail worth GHS20,000 following his arrest on Wednesday for claiming in an interview on Accra100.5FM that the New Patriotic Party got him to detonate dynamites to scare off voters in the stronghold of the National Democratic Congress during the 2016 general elections.

Following his release, Mr Adorye said in a video footage: ‘I am doing fine. In fact, I was so happy.”

“What happened yesterday will take someone 25 to 30 years to get this glory,” he noted.

In his view, people may think otherwise, but “it gave me political mileage” which “will take someone 30 years to get such a mileage.”

‘In fact, the whole world was discussing me,’ Mr Adorye exclaimed.

Mr Adorye left the New Patriotic Party to join independent presidential aspirant Alan Kyerema
ten, who also resigned from the governing party over alleged unfairness in the processes that led up to the flagbearer race.

The Movement for Change has since formed alliances with like-minded groups to field Mr Kyerematen as an independent candidate in the 7 December 2024 polls.

Source: Ghana Web

Former presidential spokesman, Samuel Koku Anyidoho has reacted to the arrest and arraignment of Hopeson Adorye before court over a charge of publication of false news.

Adorye, a former New Patriotic Party (NPP) member was arrested on May 22, 2024, over self-confessed claim that he detonated dynamite to scare voters during the 2016 general elections.

He was subsequently arraigned before a Circuit Court on May 23 and granted a 20,000 Ghana cedi bail with two sureties.

Anyidoho posted on X that Adorye’s issue reminded him of a similar situation he found himself in six years ago when he was charged for treason.

He cautioned Adorye that the law can be very ruthless while sharing a video of Adorye in handcuffs, screaming at a police officer as he was being bundled into a waiting truck heading to court.

“Hmmmmmmm!!! Reminds me of when I was arrested for saying that ‘there would be a civilian coup’ in 2018. Except that I was not handcuffed and I was very co-operative with the police. The law can be very ruthle
ss,” Anyidoho added.

Source: Ghana Web

Young, African, agritech innovators will be meeting in Kigali next month for what’s expected to be an inspiring showcase of cutting-edge, tech-driven solutions by young people transforming the agricultural sector.

Heifer International, a global nonprofit working to end hunger and poverty through sustainable agriculture, announced that the inaugural AYuTe Next Gen gathering will be held on June 11, 2024. Themed ‘Reimagining Africa’s Agriculture for the next 50’, the inaugural AYuTe Next Gen will bring together young agritech innovators and agripreneurs from across Africa, as well as stakeholders in the continent’s agriculture and youth development sectors.

The Agriculture, Youth, and Technology (AYuTe) Africa Next Gen is an initiative by Heifer International working with partners to harness the boundless potential of the continent’s youth, innovation, and entrepreneurship to address real challenges faced by smallholder farmers while delivering solutions that can revolutionize the agriculture sector.

Launch
ed in 2021, the initiative has generated a huge response. Some of the winning solutions have gone on to make a real difference in the continent’s agricultural development.

This year, Heifer International is celebrating 80 years of supporting smallholder farmers globally and 50 years in Africa, creating and executing solutions in partnerships with governments, donors, partners, and communities to improve the agricultural ecosystem across the continent.

To mark these major milestones, Heifer will use the AYuTe Next Gen gathering to inspire a new generation of young agripreneurs and innovators throughout Africa, driving a forward-looking vision for the next 50 years of agricultural transformation on the continent.

‘The AYuTe Next Gen gathering provides agripreneurs, policymakers, investors, innovators, and other key stakeholders with the opportunity to witness young African innovators in agriculture pitching their ideas as we seek to identify and reward the top performers with cash prizes and the technical su
pport they need to scale their innovations,’ said Adesuwa Ifedi, Senior Vice President, Africa Programs, Heifer International. ‘It is also a platform for young agripreneurs to lead important conversations, share knowledge, and forge partnerships with critical stakeholders to drive progress towards a more secure and sustainable food system in Africa.’

Winners from AYuTe national competitions in several countries will be at the conference to compete for top regional prizes. These finalists, identified from entries sent in by all the participating countries, were shortlisted after an initial screening and technical assessment. At the AYuTe Next Gen gathering, their innovations will be scrutinized by a panel of competent judges, and winners will be selected and announced.

‘Every innovator within the AYuTe ecosystem is a winner, and our ongoing collaborations with them, which present us with front-row seats to the impact of their tech-driven solutions for smallholder farmers’ challenges, constantly remind us of
this,’ said Dayo Aduroja, Africa Youth and Innovation Lead, Heifer International. ‘The AYuTe Next Gen gathering is another opportunity for stakeholders and partners to see what we see and join us in supporting the bringing to market of home-grown technology and innovation that powers our smallholder farmers to increased productivity and incomes.’

Source: Ghana Web

This article examines the normalization of lies in Ghana’s politics by the Akufo-Addo-Bawumia government. Then candidate Nana Addo Dankwa Akufo-Addo

and the NPP, after losing the 2008 and 2012 elections, became desperate.

Realising that the 2016 general election was his final shot at the presidency,

they resorted to malicious and fabricated lies.

As Vice President Dr. Bawumia has started going around the country and making

frivolous and unrealistic promises, it is important to revisit the lies that gave the NPP power in 2016 in order for Ghanaians to make informed decisions on

December 7, 2024.

Their lies were in two taxonomies: unrealistic promises and fabricated lies

about President John Dramani Mahama.

In part one of this article, I focused on the latter, i.e., the fabricated lies that were told about President Mahama. In this article, I’m focusing on the former, i.e., a few of the lies and unfulfilled promises that were used by then-candidate Akufo-Addo to gain power.

I will stabilise the Cedi:

Nana Akufo-Addo and Dr. Bawumia accused the then government of poor economic management, which led to the depreciation of the Ghanaian currency. This was the reason Dr. Bawumia churned his famous quote, ‘You can engage in all the propaganda you want, but if the fundamentals are weak, the exchange rate will expose you.’

At the time he made this pronouncement, the exchange rate was USD1 to GHC4 under the Presidency of John Dramani Mahama. On 25th May 2014, Dr. Mahamudu Bawumia delivered a lecture at the Central University College. the theme of the lecture was ‘How to restore the value of the cedi’ and at that time, USD1 was GHC3.60.

Dr. Bawumia uploaded the lecture on Twitter (now X) and referred former president Mahama to go and learn from his uploaded lecture how to restore the value of the cedi.

Almost eight years after being in the helms of affairs as head of the Economic

Management Team EMT, the Ghanaian currency has depreciated beyond belief. Currently, USD1 is equal to GHC14.59.

Shift from taxation
to production:

While in opposition, Nana Akufo-Addo and his running mate Dr. Mahamudu

Bawumia accused the then government of overtaxing Ghanaians and promised

to shift the economy from taxation to production. Almost eight years after

their presidency, Ghanaians have been hit with a series of taxes, existing taxes

have been increased while additional taxes have been introduced.

Two of the most ridiculous taxes ever introduced by any government are the E-Levy which directly taxes monies from the pockets of Ghanaians and the COVID-Levy despite the end of the COVID-19 pandemic some years back.

I will not run a family and friends’ government:

During John Mahama’s presidency, only one member of his family, Joyce Bawa

Mogtari was appointed in his government as a deputy minister for Transport.

Yet the NPP accused the president of running a family and friends’ government. Nana Akufo-Addo jumped on this and promised Ghanaians that ‘I will not run a family and friends’ government’. Today, he has established hi
mself as the most nepotistic president in the history of Ghana. State institutions are saturated with families and friends of the President and his associates.

We will never go to the IMF:

Ghana has been to the International Monetary Fund (IMF) on several occasions

for several reasons since Independence. None of these were used for political

mischief. However, when the then government of John Dramani Mahama went

to the IMF for policy credibility, the then-opposition ‘smelt blood’ and went

for the meat. They accused the government of incompetence and ineptitude. They claimed the economy was badly managed and the result of that was the decision to approach the Breton Wood institution. Nana Akufo-Addo promised Ghanaians that, he would manage the economy so well that he would never go to the IMF. After winning the 2016 election, President Akufo-Addo extended the existing IMF programme for an extra year, from 2018 to 2019. After that agreement ended, the President ran back to the IMF in 2023 for a financial
bailout.

I will develop Ghana without borrowing:

Candidate Akufo-Addo accused President Mahama of over-borrowing and promised to develop Ghana without borrowing because the money was here in Ghana. His running mate amplified this by stating that having previously worked at the Bank of Ghana, he was aware that Ghana was rich and didn’t need to borrow to develop. At the time these pronouncements were made, the country’s national debt stock had reached GHC 122.6 billion including all interests accrued. Almost eight years into their presidency, the country’s debt stock is currently close to GHC 700 billion including all interests accrued.

Ghana’s politics has become saturated with deception, thanks to the NPP. This

is driven by their desperation for power, partisanship, or self-interest, NPP

politicians frequently propagate lies and falsehoods to manipulate Ghanaians.

It is important to not trust the NPP as we go into the 2024 general elections,

because their lies and deception know no bounds.

Source: Gh
ana Web