Implications of AfCFTA for International Businesses

The AmCham AfCFTA Resource Centre, under the auspices of the Ameican Chamber of Commerce, Ghana, on Tuesday, March 8, hosted Dode Seidu, a trade advisor and AfCFTA consultant for the first edition of the webinar series on the implications of African Continental Free Trade Area agreement for international businesses.

The event provided an overview of the trade agreement and updates on its implication. Our speaker also touched on the Rules of Origin and its benefits for International Businesses and provided insight into AfCFTA in the context of intra-Africa trade.

The African Continental Free Trade Area (AfCFTA) agreement creates the largest free trade area in the world measured by the number of countries participating. The pact is said to connect 1.3 billion people across 54 countries with a combined gross domestic product (GDP) valued at US$3.4 trillion.

The trade agreement aims to create a single market for goods and services, facilitated by the movement of persons to deepen the economic integration of the African continent. So far, 28 countries have made Tariff Offers that have been certified by the AfCFTA Secretariat as having met the minimum threshold requirement of 90% of the tariff lines and ready to commence trading under AfCFTA.

As to the implications for international business, the mutual recognition of standards, licensing, and certification of service suppliers will make it easier for businesses and individuals to satisfy the regulatory requirements of operating in each other’s markets. Also, the dispute settlement mechanism provides a rule-based avenue for the resolution of any disputes that may arise between State Parties in the application of the agreement.

Watch the full event below.

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AmCham Ghana 25th PwC Annual Global CEO Survey Digest

The Chamber, on March 1, 2022, hosted Richard Ansong, Partner at PwC Ghana, for a webinar on the recently released 25th PwC Annual Global CEO Survey titled Reimagining the Outcomes that Matter. The webinar was to break down the survey findings to provide insight into what global CEOs make of the business year ahead as businesses gradually recover from the pandemic.

The 2022 Global CEO Survey reflects the threats, uncertainties, and tensions associated with the pandemic and other issues such as cyberattacks and macroeconomic shock. Over the past 25 years, PwC has had the privilege to gather insight and sentiment of CEOs around the world to analyze and provide some perspective as to what is most important and works most for these CEOs.

The survey was conducted in October and November of 2021, and in aggregate, CEO optimism has remained stable, and high. About 77% of executives said they expect global economic growth to improve during the year ahead, an uptick of one percentage point from the previous survey (conducted in January and February of 2021) and the highest figure on record since 2012.

Watch the full webinar below.

 

AmCham 2022 Ghana Economic Outlook Forum

AmCham Ghana on January 28, 2022, hosted the 2022 edition of the Ghana Economic Outlook forum. Speakers for the event included Abeku Gyan-Quansah, Tax Partner at PwC Ghana, and Eric Osei-Assibey, Associate Professor at the Department of Economics at the University of Ghana.

Their presentations focused on the practical implications of the 2022 budget, provided insight into the government’s tax provisions, fiscal and monetary development, debt sustainability, and key macroeconomic performance and targets.

They also shared insight on the upside and downside of the country’s economic outlook.

Watch the full session below.

 


 

 

 

 

 

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AmCham Member Spotlight: United Airlines- Let’s Get Reunited, World

United Airlines joined AmCham Ghana in 2021 and has since remained an active member of the Chamber. United, a major American airline headquartered in Chicago, Illinois, re-launched its services to Ghana with flight UA996 onboard the Boeing 787 Dreamliner from Washington D.C to Accra on Saturday, May 16, 2021.

The airline runs a thrice-weekly service to Kotoka International Airport from several major cities in the United States including Washington, D.C.(IAD), Los Angeles(LAX), New York/Newark(EWR), and San Francisco(SFO). 

United Airlines has also helped deliver millions of COVID-19 vaccines to Ghana from the United States under the COVAX program.

During the re-launch in May last year, the United States Ambassador to Ghana, Stephanie S. Sullivan, said ”this direct route will increase opportunities for cross-border trade, visits to Ghana’s amazing tourist destinations, as well as those in the United States, and of course, reunions with family and friends.”

”I’m pleased that United Airlines, with its impeccable service and safety records, and its 95-years as one of the world’s most recognized airlines, has returned to serve the Ghanaian market.  Sometimes a video chat just isn’t enough, and it’s evident that United Airlines understands this as well,” the Ambassador added.

As a global airline driven by its purpose and values, United is in the business of bringing people together. Looking ahead, they’re aiming even higher: United is committed to doing its part to create a more diverse, equitable, and inclusive workplace and world.

Their approach to Diversity, Equity, and Inclusion (DEI) is key to a strong culture at United and a critical competitive advantage.

Over the past decade, their focus has evolved from excellence in employee engagement and talent programs to a strategic approach that embeds DEI throughout their business and impacts the communities where they work, live, and fly.

United is determined to be a global leader in DEI and will continue to work to ensure its people, policies, and processes reflect the customers and communities they serve. Learn More

United has eight hubs, with Chicago–O’Hare being its largest in terms of passengers carried and the number of departures. They are also a founding member of the Star Alliance, the world’s largest airline alliance with a total of 28 member airlines.

AmCham Ghana Commissions Its New Secretariat

The United States Ambassador to Ghana, Stephanie Sullivan, on Friday, 17 December 2021, commissioned the new AmCham Ghana secretariat at no. 10 Mensah Wood Avenue, East Legon, Accra. 

Also present at the commissioning were AmCham Ghana President, Ayesha Bedwei Ibe, Executive Secretary, Simon Madjie, Counselor for Commercial Affairs at the U.S Embassy in Ghana, Dean Matlack, Former AmCham Ghana President, William Ohrt, some Chamber members, associates, and staff.

Speaking at the event, Ambassador Sullivan noted that, ”AmCham Ghana has its eye on the future as it looks to position itself for success in Africa’s rapidly changing business environment.”  ”AmCham plays an important role in attracting and keeping those companies in Ghana,” she added.

The new AmCham Ghana secretariat hosts the newly created African Continental Free Trade Area (AfCFTA) Resource Center aimed at proving U.S. companies an in-depth understanding of the implementation of the AfCFTA agreement as well as helping them navigate opportunities presented by the continental trade pact.

Commenting on the Resource Center, the Ambassador noted that Africa’s economy continues to develop and opportunity is ripe for the AfCFTA to deliver on its promise to expand intra-regional trade and capture new foreign direct investment. ”And with this new Resource Center, Ghana will be there to help American companies navigate those opportunities,” she added.

Our President, Ayesha Bedwei Ibe, during her remarks, expressed her appreciation to members and associates for their continued support and noted that as part of the Chamber’s effort to boost trade between Ghana and the United States, AmCham will hold forums targeted at helping Ghanaian businesses invest in the United States.

AmCham U.S. – Ghana Franchising Roundtable

The American Chamber of Commerce, Ghana, on December 6, 2021, hosted  Cynthia Griffin, Minister Counselor for Commercial Affairs for Sub-Saharan Africa in Accra, for a roundtable discussion on building a sustainable and profitable franchise ecosystem in Ghana.

The roundtable held under the theme, Creating a Profitable Franchise Market in Ghana, had in attendance Dean Matlack, Counselor for Commercial Affairs at the U.S Embassy in Ghana, and selected franchisees including UPS, Burger King, U.S. Tampico, Pizza Hut, Harley Davidson, MAC Cosmetics, and Pinkberry. Also present at the meeting were AmCham Ghana Executive Secretary, Simon Madjie, Jane Okyere-Aduachie, AmCham Ghana Membership, External Relations and Project Manager, representatives from the U.S. Embassy in Ghana, as well as a representative from the law firm, Kimathi, and Partners.

In 2020, there were an estimated 753,770 franchise establishments in the United States with an economic output of 670 billion U.S. dollars, employing about 7.49 million people.

Dean Matlack, Counselor for Commercial Affairs at the U.S Embassy in Ghana, during his remarks said he believes Ghana is well-positioned to grow its franchise industry and indicated that it is a priority for his office. He also added that franchising has a lot of potential in promoting bilateral trade between the United States and Ghana.

The guest speaker for the event, Cynthia Griffin, noted the importance of understanding the new franchising schemes and stressed the need to create an enabling business environment to help new and existing franchises grow. ”We need a proper business environment to develop a franchise industry.”

The meeting also featured discussions on some challenges faced by franchisees, such as supply chain integration and the cost of importing equipment and other inputs. Attendees noted the importance of creating auxiliary industries to manufacture machinery and services to help cut the cost of doing business.

The franchise roundtable also doubled as the inaugural meeting of the newly formed Franchise Committee. An AmCham Ghana initiative in collaboration with the U.S. Commercial Service in Ghana aimed at creating a platform where franchisees and other professionals dialogue on pressing issues, share ideas, and advocate for a favorable business environment.

 

Virtual Meeting on Business and Cybersecurity: Emerging Cyber Threats

Many people think that cyber security refers to the software and monitoring that protect their email, operating system, network, and printing devices from malicious attack or data theft. Admittedly, this is a large and important part of cyber security for businesses. But management and employees also play a significant role in making sure your company is protected.

In this month of cybersecurity awareness, AmCham Ghana, on October 27, 2021, collaborates with one of the leading business advisory firms KPMG for a virtual meeting on Emerging Cyber Threats in the business environment. Speakers at this event were the Associate Director for the IT Advisory unit of KPMG,  Samuel Aluko, and Information Protection and Business Resilience Manager, Chris Owusu-Ansah.

According to the KPMG Cyber Security Catalogue, cyber risk is an everyday business consideration in the way that threats in the real world have always been.

Discussions focused on the cyber threat landscape, cyber resilience, key cyber considerations for business, and regulatory requirements and standards.

The event also featured a cyber game that shared light on cyber risks and what management can do to address these risks.

Kindly watch the full meeting below for an insight into everyday cyber threats that businesses are exposed to and what can be done to avoid or mitigate its impact.

Ecobank, People’s Pension Target Workers, Especially the Underserved With a Digital Pension Product

People’s Pension and Ecobank Ghana have launched a new innovative digital pension product that will allow all workers, particularly informal workers who make up about 85% of the Ghanaian workforce, to contribute towards a better retirement through the Ecobank Mobile App and the Ecobank Xpress points nationwide.

On the Ecobank Mobile App, the product is listed as a biller option under Pensions Biller. It enables both new and existing People’s Pension and Ecobank customers to contribute conveniently towards their pension. For informal workers, it provides a much-needed avenue for them to save and for formal sector works, this plan can be used to augment their mandatory schemes.

For the second sign-up channel which is the Ecobank Xpress points, eligible members of the public can sign up for the pension scheme at over 6000 Xpress points nationwide. These agent points are readily available in the communities and offer the ease and convenience of signing up without travelling long distances to access the service.

Bringing pension services closer to everyone through this partnership will create a significant impact and help accelerate the financial inclusion drive and generate enormous benefits to the Ghanaian economy. This partnership is also in line with the Sustainable Development Goals 1 and 8 of ensuring No Poverty and Decent Work and Economic Growth for all.

Speaking at the launch, CEO of People’s Pension, Saqib Nazir, noted that Ghana’s informal sector workers, largely underserved with financial services, form part of the 400 to 500 million in West Africa and the two billion people globally who need financial services extended to them.

Whereas the risk of extending financial services to the informal sector is high, there is also a huge potential of funds to be mobilized from that sector for national development when they are financially included while creating value and security for the contributors.

Saqib Nazir noted that financially including the informal sector has been a difficult one over the years. Still, strategic partnerships like Ecobank and People’s Pension present flexible and innovative pensions that should enable informal sector workers to get on board and secure a future for themselves easily.

The Managing Director of Ecobank Ghana, Dan Sackey, on the other hand, said this new partnership is testimony to Ecobank’s avowed commitment to using digital technology to drive financial inclusion and create value for Ghanaians, especially the largely underserved informal sector.

He said the move has a two-edged sword of ensuring financial inclusion to secure informal sector workers’ long-term welfare and unlocking and redirecting capital for long-term national development.

Director of Research, Planning, Monitoring and Evaluation at the National Pensions Regulatory Authority (NPRA), Amartey Vondee, lauded the two institutions for designing such an innovative product that helps extend pension coverage in the country.