The Business Executive Magazine - Issue No. 90

’ www.thebusinessexecutive.net

...Custodians of Corporate West Africa
Issue 90, 2019

Inside

Ghana Beyond Aid’
Special Supplement

Henry Oroh
MD/CEO
Zenith Bank Ghana

Zenith
excels with
new standards
for banking

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CONTENTS

Cover Story Economy Banking Survey Ghana Beyond Aid

Special Supplement

Zenith sets new Experts take on Finance Banks in lead by size & Berock Ventures delivers
standards for Ghana’s Minister over mid-year business volumes exquisite projects timely
Page 22
banking industry budget frailties Page 46
Page 12 Page 18 Innovation
Technology
Energy Real Estate

Equatorial Guinea: Stakes To Buy or To Rent? TDI Global unveils ‘My3D’ Apple’s iPhone is no
fortunes high with first gas hub; …Benefits of renting over to optimize competencies longer king in near 7 years

hosts 2 global gas events buying a house Page 67 Page 68
Page 54 Page 58

Diplomacy Marketing Mindset Education Tourism

South Korea keen to devel- Extroverts and Introverts: Learn the World of the Compelling reasons for
op Ghana’s agriculture & Who Are Better sales Heart and Be Better tasting Ghana touristic
persons?
human resource Page 73 Page 78 offers
Page 70 Page 81

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4 The Business Executive

EDITORIAL

Published by ECO illusion: ECOWAS
The Business Executive Ltd. must unravel conundrum
CEO/DIRECTOR, WEST AFRICA now or else…

Paulette Kporo It seems the operationalization of a single unit. One of the major objectives of the OAU/
currency is a puzzlingly elusive illusion that AU, ECOWAS and other Regional Economic
MANAGING DIRECTOR the 15 members of the Economic Community Communities (RECs) is to attain a single medium
of West African States (ECOWAS) have been of exchange. Both the Lagos Plan of Action
Friday Billy pursuing since the bloc was incepted in 1975. and the Abuja Plan strongly endorsed a single
currency.
EDITOR The importance and potency of a single currency
cannot be overstressed. As a West African citizen, All these Pan-African bodies and strategies
Ayuure Kapini Atafori you have to welcome the news that ECOWAS has recognize the fact that economic, monetary,
set July 2020 for the implementation of the ECO. financial and fiscal matters are intricately
CONSULTING EDITOR At the ECOWAS Summit held in Abuja, Nigeria’s interlinked and interrelated; therefore their
capital, on 29th June 2019, the Heads of State integration would enable African countries
Toma Imirhe and Government agreed to circulate the ECO mobilize resources collectively to develop.
in the sub-region next year (See The Business
FOREIGN NEWS EDITOR Executive, Issue 89, p. 10). Nkrumah has already mentioned the merits of
a common currency. When used, the ECO will
Robert Kofi Initially, the ECO was to be introduced in 2003. reduce the cost of doing business in the sub-
But several preset dates for the take-off of the region. “Besides, the stability of the exchange rate
FOREIGN CORRESPONDENT ECO eluded the six West African countries of the common currency would help Ghanaian
which desired a single currency to consolidate businessmen and women to plan better for the
Ibrahim Alhassani economic integration. In 2000, Nigeria, Ghana, future in their international transactions,” notes
Liberia, Sierra Leone, Gambia and Guinea signed Prof. S.K.B. Asante, an integration expert.
AFRICA CORRESPONDENT the Agreement of the West African Monetary Similarly, Tokunbo Afikuyomi, an economic
Zone (WAMZ). The WAMZ set up the West African expert, argues that the ECO will enable people
Portia Matlombe Monetary Institute (WAMI), now headquartered in in the Community move and spend money in
Accra, Ghana, in 2001 to establish a West African different countries without exchange costs.
FOREIGN BUSINESS DIRECTOR Central Bank that will husband the ECO.
The advantages of a single currency are so self-
Paul Francois The postponements of the start of the ECO are evident that the multiple postponements of the
invariably due to the inability of almost all the implementation of the ECO have not daunted
MARKETING MANAGER WAMZ member-states to meet seven budgetary, the sub-regional leaders. Hence, at the recent
fiscal and financial convergence criteria set out Abuja Summit, they decided that the Office
Benjamin Henaku by the WAMI. They are divided into four primary of Macro-economic Policy of the ECOWAS
and six secondary criteria. Only Ghana met all Commission should liaise with the West African
HEAD, BUSINESS DEVELOPMENT the primary criteria in the 2011 fiscal year. Now, Monetary Agency, WAMI and the respective
ECOWAS has decreed that when some members central banks to speed up the implementation of
Utche Okwuosah satisfy all the criteria, the ECO will materialize and a new roadmap for the realization of the proposed
then those which have not met them will use the mono-currency.
CIRCULATION & SUBSCRIPTION currency later.
For the ECO to become legal tender in ECOWAS,
Edmund Boateng Historically, the idea of a single currency for the CFA Franc of the eight-membered Union
Abdul Salam Allotey Africa was first stoutly spearheaded by Kwame Economique et Monétaire Ouest Africaine
Nkrumah before the OAU (now AU) was birthed (UEMOA) (West African Economic and Monetary
ADMINISTRATOR / PRO on 25th May, 1963. In his pre-OAU book, Union) and the national currencies of the WAMZ
‘Africa Must Unite,’ Nkrumah wrote: “These must be merged.
Tracy Billy almost fabulous resources can be fully exploited
and utilized in the interest of Africa and the But skepticism has been raised about the July
EVENTS MANAGERESS African people, only if we develop them within 2010 deadline for the commencement of the
a Union Government of African States. Such ECO. Experts say the economies of the sub-
Pearl Hanson a Government will need to maintain a common region are not aligned enough for the ECO to
currency, a monetary zone and a central bank function. An African Development Bank report
EVENTS/SALES EXECUTIVES of issue. The advantages of these financial and posits that the deadline is likely to be put off again
monetary arrangements would be inestimable, unless ECOWAS can harmonize its monetary and
Theresa Ayesu since monetary transactions between [sic] our fiscal policies.
Joyce Asare several States would be facilitated and the pace
Shine Amegashie of financial activity generally quickened. A central Whatever is hindering the actualization of the
bank of issue is an inescapable necessity, in view ECO, ECOWAS leaders are urged to unravel the
DESIGN & MULTIMEDIA MANAGER of the need to re-orientate the economy of Africa conundrum or else regional integration will be
and place it beyond the reach of foreign control.” doomed forever.
Daniel Sackey Yobo
Ever since Nkrumah underscored the central Mail to the Editor
IT/SOCIAL MEDIA role that one currency plays in the economic
development of Africa, African leaders have been Send your articles,letters, etc. to the editor:
Emmanuel Bedzo consistent in their pursuit of a single monetary
[email protected]
INTERNS

A. Naa Deedei Ammah
Amiah Lydia Dadja

The Business Executive 5

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6 The Business Executive

West Africa Briefs

Ghana Cocobod to distribute 44 companies, individuals
60M seedlings to cocoa honored at 2nd Insurance
DVLA to introduce new farmers awards
laws for Uber, Taxify

The Driver and Vehicle Licensing Authority Ghana Cocoa Board (COCOBOD) is A total of 45 companies and individuals were
(DVLA) will soon begin piloting a new regulatory expected to distribute about 60 million honored at the second Ghana Insurance
regime for ridesharing commercial activities hybrid cocoa seedlings free of charge this awards which seeks to promote the growth
such as Uber and Taxify. year to farmers across the cocoa growing of the insurance industry through progressive
districts to plant to increase their yield and competition, innovation and adherence to
The new regulations will provide distinct DVLA incomes. the highest professional standards.
identification for the digital transport operators,
faster registration and twice a year renewal of Kwadwo Danso, Ashanti Regional Manager Enterprise Group was the biggest winner,
road worthiness of the Vehicles. of Cocoa Health and Extension Division taking way the Life Insurance Company of
(CHED) of COCOBOD, announced that the the Year, General Insurance Company of the
“The Authority is on the verge of piloting a new hybrid cocoa trees were tolerant and Year, Commercial Line Insurer of the Year, the
system to fully regulate use of private Vehicles resistant to diseases and pest and took two ICT Leadership (insurance category) and the
for ridesharing commercial activities-such as years to bear fruits. They also produce a Marketing Initiative of the Year awards. Mrs
Uber and Taxify,” Kwasi Agyeman Busia, the large number of pods with large beans sizes. Jacqueline Benyi, the CEO of Enterprise Life,
Chief Executive of DVLA, said at the opening a subsidiary of the Group, won the Woman of
of a New DVLA Office in Koforidua. Busia Speaking at a sensitization rally for cocoa Excellence Award.
added that “the changes would include a farmers at Nsuta in the Bosome-Freho
clearer identification, a faster registration, and District, Danso said the provision of the Other winners include NMH Nationwide
the twice a year renewal of road Worthiness of seedlings were part of several initiatives by Medical Insurance, the Private Health
such Vehicles”. COCOBOD to increase crop yield, sustain Insurance Company of the Year and the
higher cocoa production and boost incomes ICT Leadership awards; GLICO Group,
He announced that DVLA is ready to implement of cocoa farmers. the Personal Line Insurer of the Year, Best
the Computer based Voice Over Test for drivers Insurance Group and the Indigenous
without formal education beginning September He said other initiatives such as the Company of the Year (private health category)
this year in six local languages, namely Ga, mass spraying and pruning of the cocoa awards; and SIC Insurance Company, the
Akan, Ewe, Dagbani, Hausa and Nzima. farms, hand pollination, increased fertilizer Brand of the Year Award, with Elizabeth
application, rehabilitation of diseased and Wyns-Dogbe, the CEO of SIC Life, winning
old cocoa farms, as well as encouraging the the CEO of the Year (life insurance category)
formation of farmer co-operatives, were all Award.
geared towards increased cocoa production
in Ghana. The rest are Starlife Assurance Company
Limited, the Best Growing Company,
Indigenous Insurance Company of the
Year and Customer Care Service Award;
Cosmopolitan Health Insurance, the
Product Innovation Award, with its CEO,
Beatrice Amponsah, winning the Leadership
Excellence Award in Health Care.

Cashew fetches US$2.5 and revamp the sector in order to contribute
billion - Deputy Minister significantly to the country’s GDP. He directed
the Metropolitan, Municipal and District
The cashew industry is expected to fetch the Assemblies (MMDAs) to raise the targeted
country US$2.5 billion in the next five years, 100,000 cashew seedlings under the Planting
Augustine Collins Ntim, a Deputy Minister of for Export and Rural Development (PERD)
Local Government and Rural Development, has program.
said.
He stated these when interacting with the
Ntim said the government devoted GHC1 billion Heads of Department (HODs) and staff of the
for establishing the Tree Crop Development Pru East District Assembly at Yeji in the Bono
Authority to regulate the cashew industry East Region in July 2019.

The Business Executive 7

NIGERIA West Africa Briefs Dangote Refinery
Completion Date Shifted
Nigeria fears U.S. Labor’s unwieldy
competition in oil sales demands delay Mr. Devakumar Edwin,
minimum wage – Gov’t Group Executive Director of Dangote Group,

The Federal Government has attributed delay Dangote Refinery Completion Date Shifted
in the implementation of the “Consequential The 650, 000 barrels per day Dangote oil
Adjustment” of the N30, 000 new minimum refinery is likely to be completed by the end
wage to the unrealistic demands by labor of 2020 due to problems associated with
unions. Chief Richard Egbule, the Chairman importing steel and other equipment. Thus
of National Salaries, Income and Wages refining operation, which was expected to
Commission, made this known to the News begin at the facility early 2020, has been
Agency of Nigeria in Abuja in August 2019. shifted, implying that it may start by early
2021 due to the new development.
Nigeria’s oil sales may go through diffi- Egbule explained that the current demand
cult times, following U.S. President Donald of the labor unions would raise the total Devakumar Edwin, the Group Executive
Trump’s new strategy to enthrone United wage bill very high and that was why the Director of Dangote Group, disclosed to
States’ dominance in the global oil market government could not accept their proposed Reuters in August 2019 that the firm could
recently. Both Nigeria and the US are big salary adjustments. “Labor is asking for start using the refinery’s tank farms as a depot
producers of the same light, sweet oil grades consequential adjustment and government, to warm up operations. “We will be able to
that are ideal for refining into gasoline. in its wisdom, had made budgetary provision complete the refinery project by the end of
for an adjustment of N10, 000 across board next year - mechanical completion,” Edwin
According to IHS Markit, a London-based oil for those already earning above N30, 000 per said. He said the crude unit for the refinery,
industry information company, though Eu- month. which set sail from China in July 2019, would
rope has imported around 46% of Nigeria’s arrive by the end of October 2019.
oil since the start of 2019; India about 18%; However, the unions have refused this offer,
and the rest of Asia about 10%, the Nigerian saying that because the increase in minimum Edwin said the company was setting up its
product is facing strong completion from the wage from N18,000 to N30, 000 was 66 own trading desk to monitor international oil
U.S. “They’re facing bigger competition from per cent, therefore they want 66 percent prices. The refinery, which is being built at a
the U.S., and … U.S. exports have really increment across board,” he said. Egbule large expanse of land at the Lekki Free Trade
picked up,” a major buyer of Nigerian crude added that “we will use a percentage that Zone in Lagos, will become the biggest in
told Reuters. when applied will not exceed what has been Africa. The facility is touted by many industry
provided for in the budget.” players as a game-changer for the African oil
The buyer said, “As many as 40 cargoes for and gas industry which will transform Nigeria
export in August were still in need of buyers from being a net importer of petroleum
when Nigeria began publishing its preliminary products to a net exporter.
program for September exports beginning on
July 18. It was the largest oversupply so far in
2019, with about 25 cargoes as the monthly
norm. Though the excess has begun to clear,
in part due to energy majors absorbing much
of the excess into their own refining systems,
the discounts sellers made to attract interest
have lowered price expectations for Nigerian
exports for September.”

Protesters target Young people have been protesting and
South African shutting down South African businesses to
businesses in Nigeria indicate their anger at “continuous xenopho-
bic attacks on Nigerian residents in South
Nigerian students shut down MTN Africa.” The protests were organized by the
offices and Shoprite, both South Afri- National Association of Nigerian Students
can businesses, in Nigeria to protest (NANS). In August 2019, NANS shut down
against what they called xenophobic Shoprite in Ogun State, while in July MTN of-
violence against their compatriots in fices in Kaduna were shut down.
South Africa.
8 The Business Executive

West Africa Briefs

BENIN

Benin gets first regasification unit in
West Africa

Total, the French oil company, has signed and operated With a population of less than 12 million and
a Gas Supply Agreement and Host by Total. The a GDP of $10.35 billion in 2018, Benin is
Government Agreement with the Republic agreement will grew by about 7% in 2018 and is expected
of Benin and its state utility, the Société revive hopes to grow by 6.5% in 2019, according to the
Béninoise d’Energie Electrique (SBEE) on of seeing clean International Monetary Fund (IMF), placing it
24th July, 2019. The gas agreement will see LNG to power in the top 15 of the world’s fastest growing
the development of a 0.5 mtpa Floating, future homes economies. The political vision has led to
Storage and Regasification Unit (FSRU), the and industries a better ease of doing business. Benin
first in West Africa. Liquefied Natural Gas across the sub- has been revising its Electricity Code. Last
(LNG) supplies sourced from Total’s global region. month, its Council of Ministers approved
portfolio are set to start in 2021 and last for the new framework of intervention for the
15 years. The signing of Independent Power Producers (IPPs),
agreements improving investment and operating
The new gas import project will supply with Total brings hope to a region hungry for conditions for private investors in the power
power plants in Benin such as the new power. With recent legislative reforms and a industry.
127MW power station at Maria Gléta, with strong political will, the small West African
the regasification infrastructure developed nation is strengthening its place as the capital This is no small feat for the sub-region which
of the West African Power Pool (WAPP) and has repeatedly tried to develop its gas-to-
positioning itself as a big hub for gas and power infrastructure but has faced financing,
power in the sub-region. infrastructure and regulatory challenges.
Between Cote d’Ivoire, Ghana, Nigeria and
The project is a result of strong political Senegal, up to 7,750MW of gas-to-power
will under the able leadership of President facilities could be installed by 2030, according
Patrice Talon. Benin has been implementing to Power Africa. In practice, however, erratic
a Government Action Plan since 2016, which supplies from the West Africa Gas Pipeline,
places the revitalization of the country’s lack of gas and transmission and distribution
energy sector and private sector capital as a infrastructure, unattractive pricing structures
pillar of economic development. and outdated master plans mean that such
potential may remain under-exploited.

Benin to receive precious artifacts
from France

Benin is preparing for the return of its precious artifacts after centuries of seizure by
colonial France. Benin was the first country to formally ask France to give back its famed
artifacts. Last November, French President Emmanuel Macron announced the return of
26 historic artifacts to Benin.

The artifacts include thrones and statues taken in 1892 during a French colonial war
against what was then the Kingdom of Dahomey. In July 2019, French Culture Minister
Franck Riester said Paris would go ahead with the restitution without waiting for a new
law to provide for it. Riester said the European country would consider similar demands
from other countries.

The West African country is restoring and building museums, and training curators to
house the artifacts and other fragile objects properly. Jose Pliya, who heads Benin’s
National Heritage and Tourism Development Agency, said the initiative would take
months to actualize. Pliya believed harnessing Benin’s rich culture could bring major
jobs and development dividends.

“From our side, we are aware the condition to receive these pieces is not really there.
Why? Because we have museums … but they are suffering. A lot of waste and
mismanagement in the past. Benin is very rich in terms of culture. We want to transform
this culture into resources. And one way is tourism,” he said.

The Business Executive 9

West Africa Briefs

dco’ivtoe ire Millennium Challenge,
Bechtel & gov’t in new
partnership

Factory to use
plastic waste to build
classrooms

Mars backs Cote
d’Ivoire-Ghana cocoa
floor price

United States (U.S.) food producer Mars Inc. MCC CEO Sean Cairncross, Secretary General to Conceptos Plasticos, a plastic recycling
has supported the decision by Cote d’Ivoire the President of Côte d’Ivoire Patrick Achi (middle) company which is building a factory in Cote
and Ghana to set a floor price for their cocoa and Bechtel’s Regional President of Africa Sir James d’Ivoire, will transform old flip-flops and car
exports, a senior Mars executive told Reuters, Dutton (right) at the signing ceremony in Abidjan tires into bricks to build classrooms. The
becoming one of the first major chocolate factory, the first of its kind in Africa, will
companies to back the initiative. The West Photo credit: MCC produce enough plastic bricks to build 500
African neighbors agreed on 12th June, 2019 classrooms across the country by 2021,
to fix a minimum price of $2,600 per tonne The United States’ Millennium Challenge with funding by UNICEF and a Colombian
free-on-board that buyers must pay from the Corporation (MCC) has announced a social enterprise.
2020/21 season in order to access their over new strategic collaboration with Bechtel
60% share of global supply. Infrastructure Corporation and the government Sophie Chavanel, UNICEF’s head of
of Côte d’Ivoire which is focused on national education in Cote d’Ivoire, said the
The new price will ease pervasive farmer infrastructure master planning. MCC CEO Sean interlocking bricks - cheaper and lighter
poverty that has become a blight on Cairncross, Bechtel’s Regional President of than many conventional building materials
chocolate makers’ image and a threat to Africa, Sir James Dutton, and Secretary General - require no cement, are fire retardant and
the sector’s future in West Africa, as young to the President of Côte d’Ivoire Patrick Achi stay cool in hot weather. It costs about
people walk away from a life of backbreaking signed a Memorandum of Understanding in $14,500 to build a plastic-brick classroom.
labor with little reward. Abidjan, Côte d’Ivoire’s capital, in August 2019
to memorialize the partnership. Many local women who make a living
“We believe cocoa farmers should earn collecting plastic waste will supply the
sufficient income to maintain a decent Cairncross said: “Infrastructure master planning factory in Abidjan with raw materials.
standard of living,” John Ament, Global Vice is critical as we identify opportunities for Isabel Cristina Gamez, CEO of Conceptos
President of Cocoa for Mars, told Reuters. coordinated and complementary investments Plasticos, said “we want to help lift women
“The reality today is that many are a long among public sector, private sector, and civil out of poverty and leave a better world for
way from this.” Though farmer advocacy society partners … we look forward to an
groups have applauded the decision, major effective and successful collaboration.” children.”
chocolate makers have remained largely
silent since the decision was announced. The partners hoped to develop a highly-effective
infrastructure master plan which could also serve
as a template for other West African countries.
Achi said: “The national infrastructure master
plan will guide future infrastructure projects and
will serve as a roadmap to increase economic
growth, reduce poverty, and increase foreign
[and] domestic investment in Côte d’Ivoire.”

U.S. & AU sign agreement
to promote AfCFTA

Ghana and Cote d’Ivoire will pay a Deputy United cooperate to develop the AfCFTA. “The United States
States (U.S.) Trade Representative C.J. Mahoney recognizes that one of the African Union’s principal
and African Union (AU) Commissioner for Trade and aims is to promote sustainable development as well as
Industry Albert Muchanga signed a joint statement on the integration of African economies,” the statement
trade between the U.S. and the AU at the opening of noted.
the 2019 African Growth and Opportunity Act (AGOA)
Forum held in Abidjan, Cote d’Ivoire, in August. The U.S. and AU intend to work together to promote
a sound trade policy environment, regional economies
The statement said the U.S. and AU want to increase of scale and increased flow of goods and services in
continental trade and investment under the AfCFTA. order to increase intra-Africa trade and investment,
The U.S. is ready to identify ways that the country can and for same between the two parties.

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The Business Executive 11

COVER STORY

Zenith sets new
standards for Ghana’s
banking industry

Zenith Bank is setting new standards for Ghana’s banking industry to the benefit
of the banking public, industry regulators and the state. TOMA IMIRHE documents
how this new generation bank is changing both the way banks in Ghana serve as
a platform for consummating financial services and how they carry out financial
intermediation.

When Zenith Bank Ghana opened its doors to the country’s banking public as “Zenith Bank Ghana’s
part of the first wave of Nigerian banks to establish subsidiaries in West Africa’s
second largest economy, it was greeted with the same skepticism that all the outstanding financial
other banks from that country had to cope with. Since then however, over the solidity is perhaps
past decade and a half, Zenith bank has done more than any other Nigerian bank best illustrated by
to prove the skeptics totally wrong. Indeed, much more importantly, the bank has the fact that it was
changed the way banking products and services are designed and delivered in the very first bank
Ghana. in Ghana to meet
the new minimum
In doing this, Zenith has combined the exemplary quality and standards of capital requirement
conduct required of international banks to compete successfully against both of GHc400 million,
multinational and local banks here in Ghana as well as against banks in the despite it being much
various countries in which it operates. younger than many of
its competitors in this
Zenith’s heritage as a homegrown and wholly-owned West African bank country’s universal
coupled with its sheer pedigree as Nigeria’s most globally respected bank have
been leveraged to maximum effect; here is a bank that is at the same time an ”banking industry.
international one in terms of its corporate governance and risk management
processes and standards, as well as its financial muscle, and human expertise
capacity, and a local African one in terms of the uniqueness of the products and
services it offers and how it continues to deliver Value to its customers.

Over the past one year though, Zenith’s financial muscle has been most crucial
to its fortunes as banks in Ghana have had to recapitalize heavily even as
deteriorating asset quality and insolvency challenges have contributed to the
reduction in the number of licensed banks from 34 to 23.

Zenith Bank Ghana’s outstanding financial solidity is perhaps best illustrated
by the fact that it was the very first bank in Ghana to meet the new minimum
capital requirement of GHc400 million, despite it being much younger than many
of its competitors in this country’s universal banking industry. Most instructively,
it achieved this without having to require an equity injection from its Nigeria-
headquartered parent bank, Zenith Bank Plc – all it had to do was to convert its
huge financial holdings hitherto held in its income surplus account into its stated
capital account. This was made possible by the zero dividend policy adopted by
the Bank since it commenced operations in Ghana, opting instead to re-inject all
its consistently growing after tax profits back into the business and by extension,
the economy.

Indeed, Zenith has always focused on long term growth and financial solidity as
a safe haven for savings and investment, and those two objectives are being
fulfilled through the quality of its financial intermediation and technologically driven
products and services. Within its first decade of operations in Ghana it was voted
Bank of the Year at the annual Ghana Banking Awards, and this is just one of the
many awards it has since been awarded with.

12 The Business Executive

COVER STORY

Zenith Internet Banki ng nd Visa Cards By the end of 2018, Zenith had grown into the 7th largest bank in Ghana with total
Z-Mobile assets of GHc5,572.475 million. Instructively, it ranks even better – in 6th place - by
its shareholders funds of GHc872.201 million evidencing its financial solidity.

To be sure, Zenith is a conservative bank with regards to its balance sheet structure,
emphasizing safety over both profitability and the competitiveness of its product
and service offering. Indeed, while its loan portfolio of GHc733.084 million was the
12th largest in the industry as at the end of 2018, its investment portfolio, primarily
in riskless government debt securities was the 3rd largest at GHc2,869.293million.
This is because Zenith’s main target market comprises customers who require an
excellent platform with which to effect their transactions as well as a safe haven
for their deposits, rather than customers who need financial support all the time.

This has been rewarding; by the end of 2018, Zenith had customers deposits to
the tune of GHc3,434.250 million. Ghana’s most astute customers, enterprises,
institutions and households alike, recognize the bank’s superiority with regards to
speed, accuracy, efficacy and convenience, traits the Bank is well known for. The
Bank continues to play a pioneering role in the design and deployment of a wide
range of digital banking products and services and has deservedly been acclaimed
as one of the best banks in Ghana in this regard by customers, regulators and the
financial services industry.

Indeed, Zenith Bank’s digital banking offerings have set the bar with regards to
standards in this area of activity for Ghana’s financial services industry as a whole
and is deservedly being recognized as a market leader both home and abroad.
Apart from being recognized as the Bank of the Year, Ghana 2018 by The Banker
magazine, Zenith has been voted “The Bank that Best Promotes Cashless
Transactions” for three consecutive years.

Zenith Bank’s digital banking offerings include:

Zenith Mastercard a Zenith Internet Banking: To enable customers conduct business faster and
Make life simple on the go... smarter, and in keeping with its reputation of taking banking to the doorstep of
customers, the Bank upgraded its Internet Banking Platform to make it more robust
and give it more functionality. The upgrade introduced a new dashboard, which
allows customers, to view at a glance, a summary of all accounts you have with the
Bank. The dashboard also provides a graphical illustration of recent transactions
and how it impacts on the user’s account. Other essential self-services that
guarantee ease of banking with the Bank’s Internet Banking channel include card
requests, cheque book requests, cash complaint reports, PIN regeneration, card
re-dispatch, card reactivation, card limit amendment, travel notification submission
as well as transfer of funds to mobile money wallets.

Z-Mobile: Zenith Bank was amongst the first Banks in the Ghanaian banking
industry to launch its app-based mobile banking service (Z-Mobile) on both Apple
and Android devices. The bank has since enhanced information security for users
of the app and upgraded login credentials, thus harmonizing credentials across
Zenith’s Internet Banking and the Zenith Mobile app seamlessly.

Some of the notable features of the Z-Mobile app include allowing customers to
check balances on their accounts, view transaction history, top up investments
(within Zenith and other investment houses like Databank), set up beneficiaries,
effect instant intra-bank and interbank transfers via the GhIPSS Instant Pay (GIP)
service, as well as pay bills.

Zenith Mastercard and Visa Cards: Zenith Bank has retained a dominant
position in the card payment market with its vast bouquet of card solutions that are
tailor-made to suit a variety of needs. The Bank’s cards include Proprietary cards,
E-zwich, Visa and Mastercard, Salary Card Payment Solutions, Dollar denominated
GlobalTravelWallet cards as well as Prepaid/Debit cards for all customers. Zenith
Bank also offers Credit cards for customers who require products such as a cash
management tool.

In addition, the Bank also provides various co-branded prepaid card solutions for
major institutions across the country. It offers fuel cards for major Oil Marketing
Companies such as Vivo/Shell & Puma. The Bank’s prepaid solutions are available
to both customers and non-customers thus enhancing the cash lite environment
whilst adhering to strict KYC standards. For the Bank’s High Net Worth customers,
Zenith Platinum cards apart from fulfilling their primary purpose as payment
enablers also come with luxurious benefits such as airport lounge passes and
affinity discounts with international and local vendors all in a bid to improve the user
experience and drive usage.

The Business Executive 13

14 The Business Executive

Scan to pay COVER STORY Year and Best Prepaid Initiative of the Year
(Zenith Platinum Prepaid Mastercard).
*966#: The *966# short code enables Kumasi, Accra-Takoradi and Accra-Tamale
customers of Zenith Bank who may not routes. In a Ghanaian banking industry where banks
have access to internet banking the chance are differentiated primarily by the quality of
to undertake simple banking transactions The convenience Zenith Bank offers is that their generic products and service delivery,
using USSD. The short code provides users customers of these airlines can book their their ability to innovate and thus offer
with most of the features of Z-Mobile. flights online and pay at any of the bank’s products and services that give customers
38 business locations across Ghana. The new levels of sheer convenience and comfort
Scan to Pay: QR codes as a payment & airlines receive instant notification of the and by their safety as havens for customers
acceptance technology, is taking the world payments and quickly dispatch customers’ deposits, Zenith Bank has proven to be
by storm. It facilitates widespread electronic flight tickets to them through the email exemplary in all three aspects. Which is why
payment adoption among the unbanked address they provide when booking. Zenith Bank has become arguably one of
especially for what are termed proximity or Ghana’s most respected banks.
face to face payments. Zenith Scan to Pay Crucially, not only does Zenith offer a
is a fast, simple and secure way by which competitive advantage over its counterparts The Chief Manager
customers make payments at a merchant’s with regards to the superior quality of its at the helm of Zenith
outlet (store/online) by simply scanning service delivery, but it also offers a safer
a QR code using a smart phone. This is haven for the underlying deposits of Mr. Henry Oroh
particularly ideal for previously un-banked customers, because it is one of the most MD/CEO Zenith Bank Ghana
merchants who sell low-unit price items. solvent, liquid and financially solid banks in
While each technology has its pros and Ghana. Mr. Henry Oroh has over 20 years’
cons, QR codes seem to be a promising experience in banking. Mr. Oroh has
way to digitize payments at low-income By the end of the first quarter of 2019, Zenith been a Chartered Accountant for
merchants and get customers to go digital. had one of the best capital adequacy ratios several decades. A Chartered Banker,
in Ghana at 32.94 percent, which is more he possesses an MBA in Finance and a
Some of the innovative products that have than three times the prescribed regulatory Law degree.
culminated in Zenith Bank becoming a minimum of 10 percent. Similarly, it is one
pacesetter in technology and innovation of Ghana’s most liquid banks, with a liquidity He has attended several programs in
include its pioneering partnership with ratio of 179 percent by end of March 2019. leadership and training, mentorship,
mobile telephone service operators MTN, The adequacy of its capital and its liquidity business development at the
Vodafone and AirtelTigo to offer mobile is buttressed by the sheer quality of its risk international level; and several programs
money services to the large unbanked assets – by the end of the first quarter of at the Harvard Business School. He has
population in Ghana. 2019, Zenith’s non-performing loans ratio also attended training locally. “When you
was a mere 12.96 percent. Not only does interact a lot with your colleagues, you
With Zenith Bank’s partnership with these this reflect improving asset quality – a year learn a lot on how to do business better,”
telecommunications giants, customers earlier the NPL ratio was 17.85 percent - but he tells TBE.
are able to link their mobile money wallets also far better asset quality than the industry
to their bank accounts to pay for goods as a whole whose NPL ratio averaged He first worked with Citibank for about
and services using their connected mobile 18.8percent in 2019. seven years and moved to Zenith Bank
money wallets. Nigeria, where he did a near seven-year
The superiority of Zenith Bank’s financial stint before he came to Zenith Bank
In the area of travel, the unmatched performance, product and service delivery Ghana as Executive Director. Three years
efficiency of the bank’s payment services is evidenced by the plethora of awards won, ago, his excellent professional mettle
has drawn more airlines, both local and both local and international. The Bank can catapulted him to the CEO position.
international, onto its E-Ticketing and Travel boast of sixteen awards won only in the first
Solutions platform, bringing the benefits half of the year 2019. Notable amongst “My passion is excellence. I am a Born
of the bank’s highly convenient payment these awards: Again Christian who believes the race
options to more travelers. Currently, the is not for the swift, nor the battle for
bank collects payments for nine international Best Banking Group Ghana 2019 the strong, it’s God that gives us grace
airlines and all domestic carriers. The list of – World Finance Magazine Awards and ability. I am proud of the results
international airlines include Africa World we are getting. The awards that we are
Airline (AWA), Arik Air, KLM, Air France, Tap Best Bank in Ghana 2019 winning. It’s because we have a great
Portugal, Rwand Air, Kenya Airways and – Global Finance Magazine Awards team. Our strength is in our people.
Med View Airline. These airlines fly directly Zenith Ghana set out to be a reference
to, or connect to most cities in the world. Best Corporate Bank Ghana 2019 point in the provision of prompt, flawless
The domestic carriers are Passion Air and – International Business Magazine Awards and innovative banking products and
AWA Domestic which cover the main Accra- services, and after 14 years in Ghana, I
2019 Award for Excellence (Banking) believe we are a reference point now ”
– MEA Business Elite Awards Mr. Oroh says.

Best Commercial Bank Ghana 2019 He is married to a very beautiful lady, and
– Global Business Outlook they have four children.

Outstanding Customer Service Award
(Banking)
– West Africa Business Excellence Awards

In recognition of the Bank’s innovation and
enormous contribution to the technological
space within the Ghanaian Banking Industry,
the Bank at the 9th Ghana Information
Technology and Telecom (GITTA) Awards,
received two prestigious awards namely,
Best Fintech-Bank Collaboration of the

The Business Executive 15

COVER STORY

“Innovation is our
watchword for business”
–Zenith CEO
The Business Executive (TBE) paid a working visit to Zenith Bank and
had an interview with the MD/CEO Mr. Henry Oroh (HO), and the following
conversation ensued.
TBE: Bank of Ghana also came up with principles

TBE: What is your assessment of the aftermath of the on good corporate governance, how is Zenith Bank
Bank of Ghana’s recapitalization drive and how has Zenith responding to that?

Bank been able to sustain its operations? HO: Well, for us at Zenith Bank, we are ahead of some of these

HO: The new capital requirement introduced by the Bank of Ghana reforms. First of all, we are a global bank, not only doing business here
principally raised the capital requirement from a minimum of GhC120 in Ghana. We have been doing business in Nigeria for over 29 years.
We are in London, where we are also listed on the stock exchange.

million to a minimum of GhC400 million with the deadline of December We are in Dubai, with a representative office in South Africa, China,

2018. and we are in Gambia and Sierra Leone. We have corresponding

banks all over the world as well. Basically, when you have operated

That in itself was quite challenging because it meant banks were required for many years with such mega stature, you are bound to operate
to raise the capital in a short period to meet the new requirement and by global standards in terms of corporate governance. The Bank of
under an environment where the capital market itself was not very Ghana in alignment with these standards also introduced the same
strong, banks therefore needed to seek equity from within, from existing last year, so for us as a bank, it didn’t change anything.

shareholders and other sources especially outside the capital market. Corporate Governance is not just the rules as they are enumerated but

At the end of the exercise we had 23 banks surviving the consolidation it is the quality of integrity that an Institution, its Board, Management
process. It is worth noting that Zenith Bank was the first bank, to meet and Staff exhibit.

the new capital requirement. As a matter of fact, we met it 10 months Corporate Governance rules are also good for the market because
ahead of the deadline. we also know that not all the banks have the opportunity of having

We always say that before the ink that signed the requirement directive a bigger parent company or home office to direct them regarding
got dry, Zenith Bank had already met it. This is because we had a balance these governance rules like we have had, so for such institutions
sheet that was very strong and all we needed to do was to reposition the who have not had this privilege and have not had this good heritage
balance sheet to meet the requirement using our revenue reserves. to inherit, the corporate governance rules introduced would enable
them achieve the financial stability and discipline required on the part

So in terms of the post recapitalization environment, the essence for the of both management and staff.

Bank of Ghana requiring banks to recapitalise to GhC400 million was to Basically, these rules have been introduced to bring sanity and
create capacity among the banks in terms of capital, ability to absorb discipline into the Banking sector so that the failures we witnessed in

shocks, handle big-ticket transactions and give support to the real the past few years do not repeat themselves in the future.

sector, businesses and SMEs which in turn can create investments and

employment and the cycle of money exchange continues. TBE: How are you dealing with the issue of Non-

The result therefore of this will be an increase in GDP, an increase in the Performing Loans in the industry?

standard and quality of living and an increase in employment. Additionally, HO: To have a non-performing loan, there has to be a lender and a
interest rates and the cost of borrowing also decreased. This is because defaulter. The banks have a job to lend, and it’s also the job of the
the more capital there is, the more the supply of funds into the system. borrower to pay back according to the terms of borrowing. Non-

The increase in capital is also meant to bring down the cost of borrowing, Performing Loans (NPL) have been quite an albatross in the financial
which is good for the real sector. So far so good, we have seen the system, within the last four years.

interest rate come down. Two years ago it was in the region of 23% Nonetheless, Government has responded well, they have raised bonds
to 25% per annum, and treasury bills were also in that region. Today to clear substantially, most of the debt especially within the energy

we have seen treasury bills in the region of 14% to around 15.5%. This sector and then some within the private sector. With respect to Zenith

downward trend is partly because of the high capital banks are operating however, our Good Corporate Governance culture, good board, good

with now. management, and good leadership systems have worked so much
for us that we don’t have so much of NPL issues. We go through

There are other positive impacts but these would present themselves with the proper credit processes, we monitor the loans properly, we take
time. Sometimes, the cycle of development is such that there will be up ownership of the loans and profile the companies and individuals that
and down spirals, the reform therefore was good for banks in the industry, we give loans to and we make sure they all pay back, so in a way, we
for businesses and the Government of Ghana. don’t have so much of the NPL issues.

16 The Business Executive

COVER STORY

TBE: How is the Credit Reference Bureau TBE: Are there any new products All these achievements I must say have
helping in your efforts? you are introducing into the been from God. As the Bible says, “the
market? race is neither for the swift, nor the battle
HO: The Credit Reference Bureau to a large extent has for the strong, but it is God that gives
a lot more to do to assist with NPLs in the industry. HO: We are in an industry that is evolving every the Grace”. I am happy with what we
We therefore need, as major players in this industry, to day. If you don’t evolve, you will be left behind. have achieved as a Bank and I am very
work together. The Ghana Association of Bankers, the At Zenith Bank, innovation is our hallmark; proud of the results we keep posting.
Central Bank, and the financial industry need to work we are always developing innovative digital The Zenith brand is very strong and our
together and strengthen the bureau. We need a culture banking products and services that cater to strength is in our people. We set out
where we say; I am not going to lend to you except you the unique banking needs of our customers. to be a reference point some 14 years
have a clean slate with the bureau. We must not create We therefore continue to churn out products, ago in the provision of prompt, flawless
what we call MAD (Mutually Assured Destruction) which through the use of technology as a means to and innovative banking products and
can be described as a system where due to competition reach our customers on a daily basis. We want services in Ghana, and Zenith Ghana I
and the need to make money, Bank A, B and C will lend to dominate the digital space in the banking believe is the reference point now.
to the borrower regardless of the poor record he or she industry in Ghana in line with our vision, “To be
may have. a reference point in the provision of prompt, TBE: Any final words to your
flawless and innovative banking products and customers?
We must find a way to strengthen, give more power and services in the Ghanaian banking industry.” We
visibility to the bureau. As banks, we should also report want our customers to reach us not only in our HO: I would urge everyone to always
loans when they go bad as this has been identified branches but on their smartphones, tablets. ASPIRE! At Zenith we always say, “If
as one of the major problems of the industry. I would We want these channels to be another Zenith you aspire to perspire, the universe will
therefore take this opportunity to advice all banks to be branch where customers can do full banking. conspire in your favour”. As a human
transparent and report loans when they go bad to help being, if you are using 10% of your
the banking industry. Earlier this year, we launched the “Go Lite cerebral capacity, you are a genius. So
with Zenith Bank” campaign which was aimed aspire, because you have more potential
Again, the enforcement of the laws governing loan at raising awareness of the Bank’s digital than you can imagine.
disbursement and Non-performing loans have also products and services that make banking
been very weak. The laws should be working. For every faster, smarter, safer, and more convenient
default, individuals and businesses should be held for our customers, as well as promoting the
accountable. In more advanced economies such as government’s agenda of a cash-lite economy.
the United States, United Kingdom, etc., one cannot
have access to a credit card, default and still be able TBE: Kindly tell us a bit about
to access a new card. Unfortunately, here in Ghana, yourself.
we default and we walk away. I think society has to get
involved because this is a social problem. Government, HO: I have been doing banking for over
the church, the mosque and the various institutions twenty years. I am a chartered accountant
have to work together for us to create a society where of several years, I have an MBA in Finance,
there is harmony, collaboration and a desire to comply. and I have a Law degree too. I am also a
Chartered Banker.
TBE: What was the rationale behind your
recent SMEs and Corporates Breakfast I have attended several programs
forum? internationally on leadership, mentorship,
business development, as well as various
HO: The Zenith SMEs/Corporates Breakfast Forum was programs in Harvard and most of the
organised in conjunction with Firmus Advisory Limited, International Business Schools. I have also
a leading business consulting firm operating in the areas attended several trainings locally. I also make
of Regulatory Compliance, Market Research and Trade it a point to learn from my colleagues; when
Development and it brought together the leadership of you interact a lot with your colleagues, you
Zenith Bank, representatives of the Ghana Revenue learn a lot about how to get the job done
Authority, stakeholders and valued customers of the better.
Bank for an informative session and deliberation on the
recent tax reforms introduced by the Government of Before joining the Zenith family here in
Ghana. Ghana, I was with Zenith Bank Plc in
Nigeria. Back home in Nigeria, I worked
The SMEs are critical to our development as a nation. In with CitiBank for about 7 years, until I
Ghana, SMEs contribute more or less 90 per cent of the moved to Zenith Bank Plc where the
GDP of our economy and it’s only good that government bus stopped. I have been in Ghana
and patriotic institutions like ours do our best to channel for the last seven years. I started off
energy towards that sector. We do not only lend, but as an Executive Director and got
we also provide a framework, and a good platform for the opportunity to become the MD/
interaction among SMEs to impart knowledge, hear first- CEO three years ago. During this
hand their issues or challenges and the opportunities short period, I believe we have seen
that exist in order for us to be better positioned to help tremendous results.
the market improve. The Forum can therefore be
considered as our own Corporate Social Responsibility I am married to a very beautiful wife
towards growing the SME space in this market in order and together we have four lovely
to grow our economy. children. I am a born again Christian
and it is God who has given me this
Grace and ability to work.

The Business Executive 17

ECONOMY

Hon. Ken Ofori Atta, Minister for Finance, addressing Parliament

Experts take on Finance
bMuindigsetet rfroaviletirems id-year

By Ayuure Kapini Atafori

Several economists and other experts “The economy is not really seeing growth economy with take-or-pay power purchase
have subjected the 2019 Mid-year at all. Times are very hard. If you asked agreements (PPAs). The country, he stated, is
Review and Supplementary Budget businessmen today, they would tell you times currently paying over Gh₵2.5 billion annually
to analyses since Finance Minister [are] very hard. So I would have thought that for about 2,300MW in installed capacity
Ken Ofori-Atta presented it on 29th July, for financial discipline, [the Finance Minister] which the country does not consume.
2019, bringing out the reviews’ strengths and should have stayed within what he originally
challenges. he presented,” Dr. Atuahene said. “Currently, according to the Energy
Commission, our installed capacity of 5,083
Dr. Richmond Atuahene, a banking consultant, Backing the banker, the CEO of Salman MW is almost double our peak demand of
argued that the plan to spend GH₵6.3 billion Partners and Financial Consult said the around 2,700 MW. Notably, 2,300MW of the
more for the second half of 2019, which Gh₵78 billion appropriation was necessitated installed capacity has been contracted on a
Parliament has approved, would put said the by failure to meet many of the revenue-policy take-or-pay basis.
economy in a dire situation. The West African targets in the 2018 budget, and thus the
country’s legislature approved over Gh₵78 demand for the additional money is uncalled This means that we are contractually obliged
billion for 2019, but Ofori-Atta’s request to for. to throw away money for this excess capacity
expend more makes the total appropriation which we do not consume. Similarly, for
Gh₵85 billion. Ofori-Atta pointed out that the government gas, Ghana has contracted for around 750
was paying about Gh₵2.5 billion annually for mmscf per day by 2023. This is even after
electricity it did not require, castigating the this government terminated two other LNG
Mahama government for encumbering the contracts in 2017,” he explained.

18 The Business Executive

ECONOMY

The current demand is about 250 mmscf Is this the third budget? Information Minister Kojo Oppong Nkrumah
per day, and this is projected to rise to disagreed with them all. Nkrumah dismissed
between 450 mmscf and 550 mmscf per “Is this the third budget? Why didn’t he talk apprehension that a decision by the government
day by 2023. “About 640 mmscf of the about this the first day? Now we have lost to review some of the current PPAs will result
contracted gas supply is on a take-or-pay $500 million multiplied by whatever rate. in judgment debts. He declaimed that the
basis, meaning we have to pay whether we It means we have lost about $1.5 billion government was cautiously working to convert
use it or not. From 2020, if nothing is done, in revenue. Why is he talking about it now the take-or-pay agreements to take-and-pay
we will be facing annual excess gas capacity and did not talk about this the last time? Is with some Independent Power Producers
charges of between $550 and $850 million it negligence or what? I think that the take- (IPPs) in a way that will prevent possible legal
every year … we cannot allow this situation or-pay, immediately you came to power, that issues like a breach of contract.
to continue. There is no doubt that the should have been the first thing you should
situation in the energy sector is shocking the have done. I think it is too late to come now “Not that we intend to force it down their [IPPs’]
economy. We are in a state of emergency and and say because of that you are tight. Being throats. We can’t do that. The idea is also to
must, therefore, respond with urgency and proactive, I think he should have done that… explain to them where the sovereign tends
boldness. We shall from August 1st 2019, what assurances do we have that we can to go, where the red line is, so we begin to
with the support of Parliament, make take-or- generate the revenue that he anticipates?” he work with them,” he told a local TV station.
pay contracts a beast of the past,” he said. asked. Nkrumah said the successes already achieved
in renegotiating some power deals are evidence
Ofori-Atta announced at least 15 new He said it is clear the government intends that the planned renegotiations will also be
measures to address the energy sector to borrow to make up revenue shortfall, a successful.
challenges which include increasing the situation he finds disturbing. Dr. Atuahene
Energy Sector Levy (ESLA) from 17% to observed that the government was plunging Prof. Godfred Alufar Bokpin, Head Finance
21%. Ironically, the NPP government, while the country into abject poverty with its large at the University of Ghana Business School,
in opposition, described the ESLA, which appetite for borrowing to run the country. charged the government to be more creative
was introduced in 2015, as a “nuisance in raising revenue rather than the current
tax.” “At the heart of these challenges are Some analysts fear that the abrogation of the trend of depending on borrowing massively to
the obnoxious take-or-pay contracts signed PPAs contract could result in judgment debts. spend on programs and projects. Speaking to
by the NDC, which obligate us to pay for Besides, Alex Mould, former CEO of the Accra-based Joy FM a day after the budget
capacity we do not need,” Ofori-Atta intoned. Ghana National Petroleum Company (GNPC), presentation, Prof. Bokpin noted: “We must
contended that the decision to review the mobilize the much needed domestic revenue.”
Dr. Atuahene is, however, unconvinced agreements is ill-advised and dangerous. In He was disappointed that the pattern and rate of
that excess payment for energy is a good a recent article, Mould stated that the review borrowing under the current government is not
justification for increasing the expenditure for of the PPAs would disincentivize potential significantly different from what pertained under
the rest of 2019. He contended that if that investors in the energy sector. the previous government. If the current situation
was the case, Ofori-Atta should have made it persists, he lamented, the next generation will
known in the 2017 budget statement. “If investors agree to take-and-pay remember the governments for their debts
agreements, the government will have instead of infrastructural development.
Mobilizing taxes to provide even greater security support
packages to make the financing of the Gross public debt
He believed that the government’s efforts development of these gas fields intended for
at mobilizing taxes are not adequate. “It is Gas2Power possible. Clearly, the approach In the review, “the gross public debt stock in
about time the citizenry embrace voluntary being proposed by the Minister shows nominal terms stood at GH¢204 billion (US$38.7
tax compliance to save our country,” he his team’s lack of experience in financing billion) as at end-June 2019, representing 59.2
appealed. This, he stated, is what will ensure infrastructure project,” he wrote. percent of GDP.” The increase in debt, Ofori-Atta
the sustenance of pro-poor policies like the explained, was mainly as a result of frontloading
Free SHS program. He conceded that paying Furthermore, the Africa Centre for Energy the financing requirements for 2019 in the first
taxes was a challenge for the people. He Policy (ACEP), an Accra-based think tank, quarter. Prof. Bokpin countered that that is not
added that the government must demonstrate casts doubts on the government’s ability to good enough. The finance academic posited
that taxes are being prudently utilized. overcome the legal hurdles in its attempt to that the government must demonstrate that it
review the power deals with at least four IPPs has the capacity to raise the needed capital to
He called on the government to spend more that have signed the take-or-pay agreements fund the investments needed to develop the
on the real sector of the economy to stimulate with the state. country.
the growth which affects the majority of
the people living in poverty. “The non-oil He averred that Ghana has a huge potential to
sector has not responded to the growth of raise money through taxes by ensuring that the
the economy because the government is majority of potential tax-payers taxes honored
underspending significantly in areas which their civic obligations. This must be done, he
drive growth,” he added. The Professor said, with the concomitant plugging of the
noted that what is currently aiding growth in leakages and corruption in tax administration.
the economy is the oil and gas sector. The
growth, he surmised, “is not sustainable and “You can talk about corruption in our revenue
does not create jobs. Growth must happen administration. The elites who have found
in the real sectors. The current growth favors themselves on boards for which reason
investors, not the ordinary person.” exemptions are very difficult to rationalize. Why
am I saying so? We have a democracy which is
highly commercialized and monetized. It is up
for grabs. Very soon our morals will be lost to
the highest bidder,” Prof. Bokpin alleged.

The Business Executive 19

20 The Business Executive

2019
Banking

Survey

The Business Executive 21

Banking Survey

Banks in lead by size
& business volumes

The recent consolidation
in Ghana’s banking
industry has profoundly
changed its structure. The
accompanying banking
reforms have generated
fundamental changes. TBE
rankings of the 18 banks
that published their 2018
financial statements before
the mandatory 21st March
deadline captures how the
structural changes have
affected the league table.
TOMA IMHIRHE assesses
the banks’ sizes and
transactional volumes.

Many changes have occurred since because the complexities of consolidating all Energy Commercial Bank; and First National
the Bank of Ghana (BoG) started their accounts into one has not allowed CBG Bank, which merged with GHL Bank.
the banking sector reforms in to publish its 2018 financials, it is not part of
August 2017 by revoking the the rankings. In effect, most rankings by size The third factor is the reintroduction of four
licenses of two indigenous banks. will eventually move every bank ranked three of the five banks awaiting recapitalization
or lower back one place to accommodate financing from the Ghana Amalgamated Trust
Seven banks have since been liquidated and CBG. - the special purpose vehicle established by
consolidated into one state-owned bank, A second factor that affects the rankings the government to secure financing for five
aptly christened Consolidated Bank Ghana is the mergers and acquisitions which selected well-managed but undercapitalized
(CBG). CBG is currently believed to be the were finalized after the end of 2018. These banks – into the rankings. Out of these, only
third largest bank in Ghana based on the increased the size and income of both First state-owned Agricultural Development Bank
asset sizes of its defunct constituents. But Atlantic Bank, which acquired the erstwhile (ADB) has published its 2018 financials and is

22 The Business Executive

Banking Survey

therefore included in the rankings. The others, LOANS & ADVANCES TOTAL ASSETS
National Investment Bank, Prudential Bank,
Universal Merchant Bank and Omni-BSIC Ecobank Ghana is the biggest lender, belying (GHc millions)
Bank, have not released their financials and so the conventional wisdom that indigenous
are not included in the rankings. When they do, banks are willing to take more risks in lending 1 GCB BANK 10,635.051
the ratings will inevitably change. than their foreign counterparts. In second place 2 ECOBANK 10,467.596
is Barclays Bank while the biggest indigenous 3 BARCLAYS BANK 8,994.562
While reforms were done to resolve the financial lender, GCB, places third despite being the 4 FIDELITY BANK 7,015.823
difficulties facing some banks in Ghana, the biggest bank in Ghana assets-wise. Stanbic, 5 STANBIC BANK 6,205.018
associated problems have not entirely gone another foreign bank, places fourth though CAL 6 STAN. CHARTERED 5,961.495
away. This is evidenced by the fact that 18 ranks fifth. Its larger counterpart, Fidelity, ranks 7 ZENITH BANK 5,672.475
out of the 23 banks have published their eighth in terms of loan book size. 8 CAL BANK 5,405.856
2018 financial reports. The reforms have 9 UBA 3,653.716
considerably closed the gap between the top Despite Societe Generale’s disappointing 12th 10 ADB 3,597.395
and the bottom in terms of financial solidity as place by size, it is the sixth biggest lender. 11 ACCESS BANK 3,563.716
the banks left have passed the litmus test of Interestingly, Zenith Bank, despite ranking 12 SOCIETE GENERALE 3,431.356
the central bank, or at least, are on the edge of seventh by size, is the 12th largest lender, 13 REPUBLIC BANK 2,857,988
doing so with governmental assistance. its emphasis placed on being an exemplary 14 GUARANTY TRUST 2,283.762
provider of payment platforms and investment 15 FIRST ATLANTIC 1,845.862
TOTAL ASSETS portfolio management. Republic Bank punches 16 BANK OF AFRICA 1,258.376
well above its weight with regard to lending, as 17 FBN BANK 989.624
By the end of 2018, GCB Bank, the partly it places ninth in spite of ranking 13th by size. 18 FIRST NATIONAL 640.62
state-owned bank which is the most popular
nationwide at the grassroots remains the INVESTMENTS
biggest bank adjudged by total assets. Its
position is, however, being closely contested by GCB shows its conservative stance by having
Ecobank Ghana, an international bank which the largest investment portfolio but the third
is largely African-owned, including significant largest loan portfolio. Conversely, Ecobank,
shareholding by Ghanaians. If CBG confirms its second by size and first by loan book size, has
position as the third largest, then that means the fifth largest investment portfolio. Barclays
Ghana’s indigenous banking industry is still very has the second largest investment portfolio.
much alive, especially considering that a new Fidelity, a reticent lender, has the fourth largest
generation privately-owned indigenous one, investment portfolio in line with its evolution
Fidelity Bank, ranks fourth. from being the largest and most successful
discount house in Ghana during its earlier
In the current rankings, the third, fifth and sixth incarnation in the 1990s.
places, by size as measured by total assets are
all occupied by foreign banks – Barclays (soon Stanbic clearly shows its commitment to
to rebrand as Absa), Stanbic and Standard lending – its investment portfolio is the 10th
Chartered respectively. The private local bank largest compared with its fifth place ranking
in the total assets rankings is CAL Bank which by total assets and fourth place by loan book
is in eighth place, ADB places ninth, having size. Zenith has the third largest loan portfolio
released its annual report despite still in need of notwithstanding placing seventh by size and
recapitalization financing through GAT. ADB is 12th by loan book size. First Atlantic has by far
the only of these five banks to have released its the smallest investment portfolio, as it ranks
results and declared a profit, proving its good 15th by size and 16th by loan book size.
financial health ahead of final recapitalization.
DEPOSITS
Perhaps, the biggest surprise is Societe
Generale, the subsidiary of one of Europe’s Deposits are the life blood of the banking
biggest banking chains, which ranks 12th in industry. Thus deposits ranking closely
spite of its acquisition 18 years ago of a local correlates with the total assets rankings since
bank – SSB Bank, at the time the third largest the latter is primarily financed by the former.
in the country. However, Stanbic interchanges with Fidelity
for fourth and fifth places, ranked by deposits
The other banks that make up the rankings rather than total assets. Similarly, United Bank
by total assets are the Trinidad and Tobago- of Africa (UBA) interchanges with ADB for ninth
owned Republic Bank, acquired by the hostile and 10th places. For the rest, deposit rankings
takeover of the erstwhile indigenous HFC Bank precisely mirror total asset rankings.
and the Moroccan-owned Bank of Africa.

The Business Executive 23

Banking Survey

SHAREHOLDERS FUNDS NET INTEREST INCOME LOANS & ADVANCES

Barclays is the best capitalized bank in Ghana. At Banks in Ghana rely primarily on funded activities (GHc millions)
the end of 2018, the bank had total shareholders for their income, which is why there is a close
funds – stated capital, retained earnings and correlation between net interest income and total 1 ECOBANK 4,717.397
various statutory reserves – that exceeded those income. While Ecobank made the highest total 2 BARCLAYS BANK 3,204.859
of its two bigger counterparts as adjudged by income for 2018, it ranks second behind GCB 3 GCB BANK 3,012.027
total assets. After that, however, some degree with regard to net interest income. 4 STANBIC BANK 2,584.735
of normalcy is restored: the biggest bank by total 5 CAL BANK 2,428.002
assets, GCB, ranks second by shareholders This is because the latter, with its huge 6 SOCIETE GENERALE 1,665.284
funds and the second largest by total size, nationwide retail customer base, provides it 7 STAN. CHARTERED 1,446.695
Ecobank, ranks third by shareholders funds. with considerably cheaper funds. It also partly 8 FIDELITY BANK 1,419.472
explains the huge variation in net interest income 9 REPUBLIC BANK 1,175.066
Beyond this, there are some glaring as a whole; the smaller banks are forced to rely 10 ADB 1,068.814
discrepancies between balance sheet size and much more on interest bearing accounts rather 11 ACCESS BANK 815.559
shareholders funds underpinning them. For than interest- free current accounts and low- 12 ZENITH BANK 733.084
instance, though Fidelity has the fourth largest cost savings accounts which are far more readily 13 UBA 634.206
balance sheet in the industry at the end of 2018, available to their bigger counterparts. 14 BANK OF AFRICA 565.056
it ranks ninth by shareholders funds. Importantly, 15 GUARANTY TRUST 424.714
Fidelity’s balance sheet is dominated by risk-free COMMISSIONS & FEES 16 FIRST ATLANTIC 387.321
investments in government securities rather than 17 FIRST NATIONAL 84.633
risk assets in the form of loans. So its relatively Income in the form of commissions and fees 18 FBN BANK 71.905
small shareholders funds are more than sufficient. tends to correlate with overall business volumes
since they derive from transaction costs and
The rankings record Bank of Africa as having fees on loans provided. The biggest upset is
GHc208.157 million in shareholders funds when Stanbic‘s second place ranking despite placing
it was supposed to have stated capital of at least fourth by total income. Ecobank ranks third
GHc400 million. Indeed, the bank recapitalized despite generating the biggest total income, a
during the first quarter of 2019, obviously situation ascribed to its digitalization of product
the BoG sanctioned the delay. Similarly, First and service delivery the benefits of which go to
Atlantic had GHc342.631 million, but this was customers rather than the bank itself.
allowed because by the end of the year, it was
well into consummating its acquisition of Energy A seeming incongruity is Republic Bank’s placing
Commercial Bank, taking its stated capital only 15th by commissions and fees despite
beyond the minimum required. generating the eighth biggest total income.
Guaranty Trust generated the eighth biggest fee
TOTAL INCOME and commission income despite ranking 14th by
total income.
GCB and Ecobank both generated total income
of over GHc1 billion in 2018 while Barclays fell only PROFIT BEFORE TAX
marginally short of the amount. Two banks, FBN
Bank and First National, delivered total income Barclays declared the highest profits in 2018
of less than GHc100 million - both are local despite only ranking third by total assets and
subsidiaries of two of the biggest banks in Africa. total income. This evidences the advantage of
First National’s performance is understandable in having strong shareholders funds, a parameter
that it commenced business in Ghana in 2016. by which Barclays led the industry by the end of
FBN, however, is the result of the acquisition 2018. Apart from this, Ecobank and GCB along
of the defunct International Commercial Bank, with Stanbic, Standard Chartered, Zenith and
which started up in the late 1990s. Fidelity made the biggest profits.

Unsurprisingly, the total income rankings replicate Only one bank that has published its 2018
the total assets rankings quite closely. But the financials declared as loss. First National’s loss
wide variation in business volumes, measured of GHc34.307 million was large. Though ADB,
by value, is intriguing in that it shows that the the only expectant GAT beneficiary, to publish
reduction in the gap between the biggest and its 2018 financials, actually declared a profit.
smallest banks, as measured by size, has not yet Exceptionally good profit margins were derived
reflected in their income generating capacities. by Guaranty Trust, which declared the ninth best
This is because most banks recapitalized pre-tax profits on the 14th best total income.
midway through last year, and some towards the
end of the year. Thus their new financial strength
will fully reflect in 2019 when the new resources
are available to them for the full financial year.

24 The Business Executive

Banking Survey

Ghana’s INVESTMENTS
reformatted
banking industry (GHc millions)

1 GCB BANK – 4,755.547

2 BARCLAYS BANK – 4,217.255

3 ZENITH BANK – 3,635.794

4 FIDELITY BANK – 3,486.018

5 ECOBANK – 2,517.039

6 UBA – 2,269.543

7 CAL BANK – 1,801.477

8 STAN. CHARTERED – 1,719.979

9 ADB – 1,644.948

10 STANBIC BANK – 1,319.378

11 GUARANTY TRUST – 907.515

12 ACCESS BANK – 866.085

13 SOCIETE GENERALE – 769.942

14 FBN BANK – 676.389

Ghana’s banking industry is different in Expectedly, part of the amount will be 15 REPUBLIC BANK – 599.796
structure from what pertained before recovered over time from shareholders of 16 FIRST NATIONAL – 292.896
the turn of 2019. Reforms introduced failed banks identified by the Bank of Ghana 17 BANK OF AFRICA – 167.297
in the past two years have culminated (BoG), the industry regulator, and judged by 18 FIRST ATLANTIC – 126.899
in dramatic change, as the restructured the courts as having illegally fleeced their
industry comprises few bigger and better respective banks.
capitalized banks.
Despite intense pressure from various
Ghana now has 23 universal banks, down from stakeholders and segments of the public,
34 at mid-2017 when the restructuring began. the BoG stuck to its guns with regard to
The restructuring has been done without any compliance with its 233% increase in the
depositors losing monies although it has been minimum capital to GHc400 million by 31st
achieved at an initial cost to the state of over December, 2018.
GHc13 billion.

The Business Executive 25

Banking Survey

The last-ditch financial support, however, for Consequently, many analysts doubt DEPOSITS
some indigenous banks came through equity its solvency and the quality of its
finance which was supposedly to be provided management. This leads to suspicions (GHc millions)
by the private pensions industry and other long that the government is using GAT to
term institutional investors, and facilitated by recapitalize its banks without having to 1 GCB BANK – 8,334.997
the government. deploy public funds. If that is the case, 2 ECOBANK – 7,831.578
then the prudence with which private 3 BARCLAYS BANK – 4,928.21
But the industry is still in a state of flux and pension funds are being utilized is 4 STANBIC BANK – 4,501.390
has not quite attained the new structure questionable. 5 FIDELITY BANK – 4,456.339
announced by the central bank in January 6 STAN. CHARTERED – 4,346.676
2019. Consolidated Bank Ghana (CBG) is Related to this is the timing of the 7 ZENITH BANK – 3,434.250
now beginning to grapple with the challenge of investment, which is still an intention; 8 CAL BANK – 3,156.843
absorbing two more additions to its corporate which means that as at now, all the GAT 9 UBA – 2,696.265
pot, following the Purchase and Assumption banks are still operating with less capital 10 ADB – 2,586.265
agreement which enabled it to take over the than the new minimum requirement. 11 ACCESS BANK – 2,563.142
liabilities and selected assets of two defunct Under the current Banking Act, it means all 12 SOCIETE GENERALE – 2,165.420
banks – Premium Bank and Heritage Bank. of the banks should be subject to certain 13 REPUBLIC BANK – 2,161.420
restraints with regard to matters such as 14 GUARANTY TRUST – 1,664.300
Some outstanding aspects of the restructuring taking of new deposits, opening of new 15 BANK OF AFRICA – 790.270
have been simple to execute. One is the branches and booking of new loans until 16 FIRST ATLANTIC – 1,355.045
transition of GN Bank from a universal bank to a the new equity capital is actually received. 17 FBN BANK – 494.620
savings and loans company. GN Bank evolved 18 FIRST NATIONAL – 184.115
out of First National Bank in September 2014, Despite state-owned CBG’s bright
which in turn emerged out of First National prospects, as Ghana’s third largest bank
Savings and Loans, one of the most successful with nationwide reach, it is still mired in the
such firms in the country. So the company has challenges of synthesizing the disparate
returned to familiar territory. balance sheets, income flows, corporate
cultures and processes and procedures
The other relatively simple transformation of several banks, all of which came into
results from the voluntary winding up of Bank of the melting pot with one financial trouble
Baroda, the state-owned Indian bank, in April or the other. Just when CBG was coming
2018. This is in line with the Indian government’s to terms with resolving the difficulties
current strategy of downsizing the geographical brought by the five banks, two others
spread of state-owned banks overseas. Bank were added. It is instructive that CBG is
of Baroda’s customers in Ghana have been not engaging in new business such as
transferred to Stanbic Bank. This is a good fit booking new loans, and not advertising
because Stanbic excels in both international itself because the issues are yet to be
trade finance and domestic commerce finance, resolved.
the two primary areas of activity for Bank of
Baroda in Ghana. Despite all these, there is a refreshing
sense of optimism currently flowing inside
A new initiative being facilitated by the Ghana’s banking boardrooms since huge
government – the Ghana Amalgamated Trust problems, which have long been simply
(GAT) – is putting up some GHc4 billion in swept under the carpet, have been
new equity for five indigenous banks. What decisively resolved.
these banks have in common, according to
the BoG, is that they are all well managed and The corporate governance directives
solvent, therefore deserving support to keep introduced by the BoG in 2018, if
them flying the flag of indigenous banking. diligently implemented, will ensure that
This arrangement is, however, already proving the practices that caused the problems
controversial. One of the GAT banks, National will not recur.
Investment Bank (NIB), has failed to publish
its financials for 2017. It is the only one out of
the five banks for which the central bank has
appointed an advisor; and the government has
assured the BoG that NIB would be restructured
for better performance.

26 The Business Executive

Banking Survey

More SHAREHOLDERS FUNDS
investments
than lending (GHc millions)

after 1 Barclays bank – 1,337.473
recapitalization 2 GCB BANK – 1,325.417
3 ECOBANK – 1,313.814
4 STANBIC BANK – 1,075.290
5 STAN. CHARTERED – 1,047.819
6 ZENITH BANK – 877.201
7 CAL BANK – 744.572
8 SOCIETE GENERALE – 701.785
9 FIDELITY BANK – 691.605
10 UBA – 641.826
11 ADB – 639.711
12 ACCESS BANK – 631.740
13 GUARANTY TRUST – 580.471
14 REPUBLIC BANK – 497.709
15 FBN BANK – 444.554
16 FIRST NATIONAL – 429.988
17 FIRST ATLANTIC – 342.631
18 BANK OF AFRICA – 208.157

Recapitalization was meant to equip Data made available by the Bank
Ghana’s banks with more financial of Ghana (BoG), the central bank,
muscle to reboot their lending to the indicates that despite the expectation
private sector, which has been flagging that the recently concluded
over the past couple of years. recapitalization of the banks would
instigate a rebound in credit growth to
But this has not happened. Rather the the private sector, comprising private
banks are retreating to the safety of enterprises and households, it is now
investments in the government’s domestic being deprived of direly needed loan
debt securities.

The Business Executive 27

Banking Survey

financing because of the public sector’s In absolute terms, credit held by the TOTAL INCOME
voracious appetite for domestic debt. private sector has grown over one
Contrary to the central bank’s year by 19.8%. This has, however, (GHc millions)
expectations, the share of outstanding been eclipsed by a 39.1% increase
bank credit held by the public sector in outstanding bank debt held by the 1 ECOBANK – 1,302.702
has increased over the 12 months up to SOEs. 2 GCB BANK – 1,260.563
April 2019. Though in absolute terms, 3 BARCLAYS BANK – 952.446
outstanding private sector bank debt has More impactfully, by a 97.2% 4 STANBIC BANK – 796.461
increased, but not nearly by as much as increase in the outstanding debt 5 STAN. CHARTERED – 712.921
the public sector debt has climbed. held by the government through its 6 FIDELITY BANK – 690.446
Cedi-denominated domestic debt 7 ZENITH BANK – 570.305
By last April, the private sector held issuances. 8 REPUBLIC BANK – 521.660
52.6% of the total outstanding banking 9 CAL BANK – 520.499
industry loan portfolio of GHc74,253.38 This shows that most of the increase 10 UBA – 430.695
million, this amounting to GHc39,079.08 in both deposits and capital – the 11 SOCIETE GENERALE – 401.846
million. Total debt outstanding owed to latter having risen dramatically due 12 ADB – 387.477
the banks by the public sector totaled to the recapitalization – has gone into 13 ACCESS BANK – 345.650
GHc35,174.30 million, or 47.4% of the increased credit to the public sector 14 GUARANTY TRUST – 313.908
total. Public sector debt comprised rather than the private sector which 15 FIRST ATLANTIC – 172.235
GHc25,840.64 owed by the government both the BoG and the government 16 BANK OF AFRICA – 145.450
through its issuances of treasury bills, had been hoping for in a bid to drive 17 FBN BANK – 68.431
notes and bonds as well as the Tema Oil faster economic growth, targeted at 18 FIRST NATIONAL – 48.586
Refinery bonds; and GHc9,333.66 million 7.6% for 2019.
owed by the state-owned enterprises
(SOEs).

As at April 2018, the public sector
owed GHc19,817.09 million in all,
this amounting to just 37.8% of the
GHc52,449.83 million total loan portfolio
of the banking industry. At that time,
the private sector held 62.2% of the
total banking industry loan portfolio,
amounting to GHc32,632.74 million.

28 The Business Executive

Banking Survey

By April 2019, NET INTEREST INCOME COMMISSIONS & FEES
the private
sector was (GHc millions) (GHc millions)
the source
1 GCB BANK – 966.566 1 GCB BANK - 197.596
of 88.8% of 2 ECOBANK – 860.952 2 STANBIC BANK – 193.009
the total Cedi 3 BARCLAYS BANK – 650.724 3 ECOBANK – 183.270
deposits held 4 FIDELITY BANK – 500.521 4 BARCLAYS BANK – 135.250
5 STAN. CHARTERED – 488.814 5 FIDELITY BANK – 134.322
by Ghana’s 6 STANBIC BANK – 465.834 6 STAN. CHARTERED – 98.589
banking 7 ZENITH BANK – 423.419 7 ZENITH BANK – 86.514
8 CAL BANK – 415.989 8 GUARANTY TRUST – 69.086
industry at 9 UBA – 343.620 9 ADB – 67.154
that time, of 10 SOCIETE GENERALE – 277.809 10 CAL BANK – 61.937
GHc71,342.42 11 ADB – 265.351 11 SOCIETE GENERALE – 53.095
12 ACCESS BANK – 219.171 12 FIRST ATLANTIC – 47.191
million. 13 REPUBLIC BANK – 176.487 13 UBA – 44.319
14 GUARANTY TRUST – 160.910 14 ACCESS BANK – 44.066
The private sector has been complaining 15 BANK OF AFRICA – 95.217 15 REPUBLIC BANK – 31.693
vehemently that it is not getting its fair 16 FIRST ATLANTIC – 84.769 16 BANK OF AFRICA – 32.116
share of bank credit. Data from the BoG 17 FBN BANK – 42.838 17 FIRST NATIONAL – 23.150
supports the sector’ assertion in that it 18 FIRST NATIONAL – 21.723 18 FBN BANK – 16.554
accounts for the overwhelming largest
proportion of the deposits that fund most
of the banks’ lending in the first place.

By April 2019, the private sector was the
source of 88.8% of the total Cedi deposits
held by Ghana’s banking industry at
that time, of GHc71,342.42 million. The
private sector’s Cedi deposits by that
time amounted to GHc63,374.94 million
compared with GHc7,967.48 million
provided by the public sector comprising
GHc4,359.79 million in deposits from
governmental institutions and agencies
and GHc3,607.69 million from the SOEs.

The Business Executive 29

Banking Survey

This implies that the public sector, as at PROVISION FOR BAD & PROFIT BEFORE TAX
last April, was supplying just 11.2% of the DOUBTFUL DEBTS
banking industry’s Cedi deposits but taking (GHc millions)
47.4% of its total outstanding loans portfolio; 1 ECOBANK – 129.499
while the private sector was providing 88.8% 2 STAN. CHARTERED – 100.758 1 BARCLAYS BANK -554.447
of the industry’s deposits but held only 52.6% 3 UBA – 97.673 2 ECOBANK – 500.974
of its credit. 4 ACCESS BANK – 92.514 3 GCB BANK – 446.382
5 CAL BANK – 66.735 4 STANBIC BANK – 335.853
Banks have been retreating from private 6 GCB BANK – 60.011 5 STAN. CHARTERED – 325.871
sector loans towards risk-free public debt 7 FIDELITY BANK – 59.127 6 ZENITH BANK – 281.842
issuances in the past two years as they have 8 SOCIETE GENERALE – 57.889 7 FIDELITY BANK – 242.090
had to struggle with rising non-performing 9 ZENITH BANK – 56.127 8 CAL BANK – 230.353
loans ratio (the industry average peaked at 10 REPUBLIC BANK – 42.680 9 GUARANTY TRUST – 215.199
23% by mid-2018); while being presented 11 STANBIC BANK – 38.678 10 UBA – 213.384
with the opportunity to make between 14% 12 BARCLAYS BANK – 32.466 11 SOCIETE GENERALE – 105.213
and 21% (depending on the tenor) on risk- 13 GUARANTY TRUST – 19.309 12 ACCESS BANK – 71.788
free government domestic debt issuances. 14 BANK OF AFRICA – 14.983 13 REPUBLIC BANK – 45.265
Between the beginning of this year and 15 FIRST ATLANTIC – 11.991 14 BANK OF AFRICA – 37.375
mid-July 2019, the government has issued 16 ADB – 10.190 15 ADB – 34.057
GHc24.8 billion in domestic debt securities 17 FIRST NATIONAL – 4.570 16 FIRST ATLANTIC – 33.318
although most of this has been used to meet 18 FBN BANK – 0.863 17 FBN BANK – 12.611
current debt maturities as they arise. 18 FIRST NATIONAL (36.891)

Banks have
been retreating

from private
sector loans
towards risk-
free public debt
issuances in
the past two
years as they
have had to
struggle with

rising non-
performing

loans

30 The Business Executive

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Banking Survey

Barclays combines
expertise & experience
to deliver best services

Barclays, the 2018 Euromoney Best Bank in Ghana, Barclays, the most profitable bank in Ghana in the 2018
continues to combine its expertise, industry financial year, is part of Absa Group Limited, which has a
knowledge and best corporate practice with its rich balance sheet of about US$100 billion and has presence
experience and appreciation of the local environment in 12 countries in Africa. Absa Group owns majority stake
to bring world-class banking to its customers and clients. in Barclays Bank subsidiaries in Botswana, Mauritius,
Mozambique, Seychelles, Tanzania, Uganda and Zambia.
Barclays Bank Ghana has over 100 years of operations in
Ghana and offer a wide range of financial services: Corporate The Group also owns majority stakes in Absa Bank in South
and Investment Banking, Business Banking Solutions Africa and National Bank of Commerce in Tanzania. It has
for SMEs and Three-tier Personal Banking Proposition - representative offices in Namibia and Nigeria; as well as
Personal, Prestige and Premier Banking. insurance operations in Botswana, Kenya, Mozambique,
South Africa, Tanzania and Zambia.
With 67 service outlets and over 165 ATMs spread across
the country, Barclays As a forward-looking African business with global scalability,
Barclays Ghana is driven by its purpose of bringing
provides a full suite of bancassurance products and an possibilities to life. This is backed by a new bold growth
array of digital banking solutions such as online and mobile strategy which prioritizes innovation and digital leadership,
banking, CashSend (ATM money strong focus on customers and being a force for good in
society.
transfer), ATM cash deposit, mobile money services, credit
cards and point of sale terminal services, among others. Barclays is committed to playing a shaping role in society
and promoting intergenerational sustainability. As part of
this, it aims to bring the possibilities of young people to
life through initiatives such as its Tertiary Scholarships and
ReadytoWork program, which prepares them for the world
of work.

In 2018, 195 tertiary students received full scholarships
to pursue various undergraduate programs in Ghanaian
universities. Additionally, the Absa Foundation, in partnership
with the Mandela Centennial Scholarship program and the
African Leadership University (ALU) in Rwanda, awarded 10
Ghanaian students three and a half years scholarships with
the key aim of grooming and empowering young leaders
in Africa.

32 The Business Executive

The Business Executive 33

Banking Survey

UBA Ghana – Driving
force of the industry

United Bank for Africa (UBA) Ghana Limited pioneered the entry of UBA Ghana Objectives
a new generation of foreign banks into Ghana in January 2005. The
presence of UBA in the banking industry in the country over the last The objective of UBA Ghana is to democratize the financial services
ten years has galvanized banking onto a higher performance level; industry in Ghana with world-class, customer-driven solutions.
where competition and innovation in responding to the needs of UBA Ghana aims to do this by making its financial services and
the customers have become the driving force of the industry. products widely and easily accessible to all, irrespective of socio-
economic status and geographic location. In this manner, the
UBA Ghana is a subsidiary of the UBA Plc, one of Africa’s leading banks seeks to bring financial services to the broad masses of
financial institutions. UBA Ghana’s world-class, customer-driven the population and make it a basic entitlement of all. In addition
innovations have earned it the confidence of the Ghanaian public, to its HEIR global values, the bank’s business is informed by an
as it continues to provide banking services to a wide variety of additional set of values crafted to reflect its peculiar business in
customers. The objective of UBA Ghana is to democratize banking Ghana. These values are: Passion, People Focus, Can-Do and
with excellent customer-driven solutions. The bank seeks to bring Responsiveness.
financial services to a majority of the Ghanaian populace and make
it a basic entitlement for all. Passion

UBA Ghana has been at the forefront of many product innovation in UBA Ghana cares deeply about what it does and is driven by a
the local banking landscape, including the revolutionary Cashless passionate desire for excellence. The bank is constantly searching
Account which permits customers to open accounts without an for new ideas to apply to its work in order to add value to its
initial deposit which was the first of its kind in Ghana. UBA Ghana customers.
also pioneered Wise Alert and SMS/E-mail alert service which
enables delivery of account-related information, products and People focus
services notification in real-time to UBA customers’ mobile phones
and email accounts. UBA Ghana’s greatest assets are its people. Consequently, the
bank takes great pains to identify and recruit exceptionally talented
UBA Ghana’s unique product developments also saw the individuals. UBA Ghana provides its people with rigorous training,
introduction of Africash, which is an instant money transfer service development and expose them to early career challenges. Only by
across Africa. doing so, can UBA Ghana ensure that its people will, in turn, make
the customer their focus.
UBA Ghana has developed a branch footprint and delivery network
that has ensured that the bank’s services are always within the Can-do
reach of valued customers. In line with its positioning statement and
strategic intent, UBA Ghana has a footprint of 28 fully networked Often, where others see problems and barriers, UBA Ghana sees
branches and over 60 ATMs spread across Accra, Tema, Tarkwa, opportunities. Daily, the bank provides creative solutions to the
Tamale, Takoradi, Kumasi, Tarkwa and Aflao. problems facing its customers.

Responsiveness

UBA Ghana acknowledges that market forces are dynamic
and unpredictable. The ethics of the bank, its structure and
technological infrastructure ensure that the bank is always within
reach of its customers, even long after normal business hours.

34 The Business Executive

Banking Survey

Management businesses; and being the leading provider of
offshore correspondent banking services to
Isong Udom, MD/CEO Abiola Bawuah, Member financial institutions and corporations in Africa.

Mr. Isong Amos Udom has an enviable Mrs. Abiola Bawuah is the Regional CEO, UBA Plc has been rated by ‘FT The Banker
experience and record in banking with key West Africa 1 of UBA Plc with enormous Magazine’ as one of the five African banks
strengths in Corporate and Commercial experience in Retail Banking and Marketing. in the top 500 global banks and the second
Banking, spanning about three decades In 2013, she left Zenith Bank where she was fastest growing brand in the world. The bank
across various countries in West and Central the Executive Director, having previously held has also been recognized by the Boston
Africa. the positions of General Manager, Marketing Consulting Group as one of the top “40 African
and Group Head, Retail Banking; and joined Challengers” on account of globalization,
After graduating as the best student in his UBA Ghana as Deputy Managing Director the workforce and asset diversity, cash flow and
faculty, with a BSc. (Hons.) in Management same year. leverage ratio.
Studies (Banking and Finance) from the
University of Calabar, Mr. Udom attended Mrs. Bawuah also worked with Standard UBA Plc is a full service financial institution
a vast series of training at the renowned Chartered Bank as a Head of Sales; with CAL offering a plethora of unique banking products
Harvard Business School, Boston, USA, Bank as Relationship Manager; Strategic and services. In Africa, UBA currently operates
Euromoney at Surrey, UK and CIBS, Istanbul, African Securities as an authorized dealing in Nigeria, Benin, Ghana, Cote d’Ivoire, Liberia,
Turkey. It is noteworthy that he has excelled in broker and with the then Bentsi-Enchi Sierra Leone, Senegal, Burkina Faso, Guinea,
various training programs ranging from Risk and Letsa (now Bentsi-Enchil, Letsa and Gabon, Chad, Kenya, Uganda, Tanzania,
Management, Total Quality Management, Ankomah) law firm as an investment officer. Zambia, Mozambique, Congo DRC, Congo
Leadership, Trade Finance, Bank Director’s Brazaville and Cameroon.
Workshop, Multinational Client Credit Mrs. Bawuah holds a BSc. in Actuarial
Process and Service Quality. Science from the University of Lagos, Nigeria, VISION
an LLB from the University of London, a
Until his appointment as MD/CEO of UBA Diploma in Marketing from GIMPA and “To be the undisputed leading and dominant
Ghana, he served as Deputy Managing an EMBA (Finance) from the University of financial services institution in Africa.”
Director of UBA Cameroon from 2011, where Ghana. She also has numerous leadership
his hard work and dedication to excellence qualifications from Harvard Business School, MISSION
earned him the position of MD/CEO of UBA Columbia, University of New York, INSEAD
Cameroon in 2014. and Institut Villa Pierrefeu in Switzerland. “We shall be a role model for African businesses
by creating superior value for all stakeholders;
Prior to this, he had worked in many UBA Plc – Truly abiding by the utmost professional and ethical
capacities within UBA Plc where he had a Global Bank standards and building an enduring institution.”
brief stint as MD/CEO of UBA Guinea as well
as being the Relationship Director Corporate UBA Plc offers services to 1,000 branches CORE VALUES
Bank, Regional Director Mainland Bank, customer touch points across Africa, 2,300 ATMs
Divisional Head of Export and Agriculture and over 13,500 POS machines fully deployed. UBA’s corporate identity rests on its core values
Lagos and many more. With presence in New York, London and Paris, - These values are:
UBA Plc is connecting people and businesses
Mr. Udom has practical and theoretical across Africa through retail and corporate At UBA Plc have set broad objectives to create
banking and its innovative Africa Trade Platform an institution that competes effectively in the
knowledge of Risk Management, Retail - a seamless payments and collections initiative global financial market place in a manner that
to facilitate and ease settlement and encourage showcases the best of African enterprise. Its
Banking, International Operations, trade across Africa, trade finance and investment African Global Bank aspiration is borne out of a
banking. collective vision to become the bank of choice
Commercial and Corporate Banking. These for transactions involving Africans and African
UBA Plc has set broad objectives to create businesses; and being the leading provider of
numerous trainings have positively influenced an institution that competes effectively in the offshore correspondent banking services to
global financial market place in a manner that financial institutions and corporations in Africa.
his transformational leadership style. showcases the best of African enterprise. Its
African Global Bank aspiration is borne out of a UBA Plc has been rated by ‘FT The Banker
collective vision to become the bank of choice Magazine’ as one of the five African banks
for transactions involving Africans and African in the top 500 global banks and the second
fastest growing brand in the world. The bank
has also been recognized by the Boston
Consulting Group as one of the top “40 African
Challengers” on account of globalization,
workforce and asset diversity, cash flow and
leverage ratio.

UBA Plc is a full service financial institution
offering a plethora of unique banking products
and services. In Africa, UBA currently operates
in Nigeria, Benin, Ghana, Cote d’Ivoire, Liberia,
Sierra Leone, Senegal, Burkina Faso, Guinea,
Gabon, Chad, Kenya, Uganda, Tanzania,
Zambia, Mozambique, Congo DRC, Congo
Brazaville and Cameroon.

Contact: UBA Ghana, Heritage Tower,
Ambassadorial Enclave; +233 (0) 302
634 060 or [email protected]

The Business Executive 35

Africa USA UK France

36 The Business Executive

Banking Survey

REDEFINING UNIVERSAL
BANKING - THE ADB STORY

One stark reality about the banking In an interview on the products and Mr. Atefoe indicated that the Bank has also
industry in Ghana is the constant service offering of ADB, Mr. Solomon launched its Visa prepaid card, especially for
transformation to improve service Adu Atefoe, the Head of Marketing and potential customers with no bank accounts
delivery. The banking sector has Communications, stated that aside to walk in and pick one as gift cards, school
witnessed several reforms and regulations focusing its core mandate of providing fee cards and traveling cards which can also
over the years, resulting in an evolution financial support to the agricultural sector, be used to make all online purchases.
from sector-based banking through to the an Executive Banking Service has been
concept of universal banking. Undoubtedly, re-introduced to the bouquet of the Bank’s Another innovative product that the Bank
this evolution has made the banking sector existing products and services. Mr. Atefoe has introduced into the market is the
more secured and highly competitive. added that the service is tailored to provide ‘home-link’ account which can be jointly
its high-net worth discerning customers with used by customers living outside Ghana
The Agricultural Development Bank (ADB) fast, superior and convenient personalized as well as their local representatives. Mr.
Limited has been one of the greatest solutions which are designed to satisfy their Atefoe said: “The account conveniently
beneficiaries of the concept of universal financial needs. ADB’s Executive Banking helps the account holder to be able to
banking in Ghana, going beyond agricultural Services are classified into Executive Gold monitor transactions in and out using of
financing to more value laden banking and Platinum, with loads of varied and the account using our electronic platforms
services. Since obtaining Universal Banking personalized benefits. Customers can as opposed to the former practice where
License in 2004, the ADB has taken giant locate ADB’s special executive branches at local representatives had total control of
steps in providing comprehensive and end- its Head Office, the Kumasi, Takoradi and the account without the knowledge of the
to-end service delivery aimed at satisfying Tamale branches. substantive account holder.”
the banking needs of every single market
segment. The Bank has also introduced a specialized This is a move to help address the long
contactless Point of Sale (POS) service for standing problem where people living
Thus ADB opens its branches from 8:00am merchants, supermarkets, hotels among abroad can now open accounts in Ghana
to 5:00pm each day, with all its over 81 others, to accept all Visa and mobile money with the hope of embarking on projects in
locations, working on Saturdays from payments conveniently in order to encourage the country and are subsequently duped
9:00am to 2:00pm as well with selected cashless transactions and reduce the risk by family members and friends who have
branches offering Sunday Banking services. of cash transactions. Merchants can also access to the accounts.
receive online Visa payments, using its Visa Mr. Atefoe disclosed that the Bank has a
web acquiring and transact securely via its wide range of electronic banking services
verified by Visa (VbV). which seeks to offer customers banking
services beyond the working hours.

The Business Executive 37

38 The Business Executive

Banking Survey

Mr. Solomon Adu Atefoe, The customer can also transfer to all funds received to any mobile wallet/bank
Head of Marketing and Communications accounts in Ghana instantly and to all account instantly in Ghana.
mobile wallets, top up airtime, pay for all
The Mobile Banking service (either USSD utilities like ECG, Surfline, Dstv, Gotv, Busy, Other products offerings by the Bank as
*767# or mobile App), QuicCash, Visa Vodafone Broad band, among others, from part of the overall objective of enhancing
Card (Debit, Prepaid or Credit), QuicAlert their smartphones, anywhere anytime, he convenience for ADB’s customers include:
services, QuicNet Internet banking, among stated. He said most overseas customers QuicCash (EMV Cards), proprietary cards
others. Customers have the liberty to can conveniently use the mobile banking to access cash in all ATMs in Ghana and
choose the products and services peculiar App to perform and monitor transactions as also shop domestically; QuicNet, Internet
to their needs without being charged for all though they are resident in Ghana. banking for both consumers and corporate
E-banking products and services. customers to access funds, statements and
“Our customers without smartphones issue transfers; Visa Classic Debit Cards,
Another service that conveniently serves have not been left out, they can use our Visa Classic Prepaid Cards & Visa Platinum
the needs of customers with smartphones *767# which gives absolute convenience Credit Cards, EMV secured Visa cards to
is the ADB Mobile Banking App. Mr. to them as they can transfer funds directly access all Visa ATMs and POS worldwide,
Atefoe explained that, once the customer from their accounts, check balances, which is also equipped with VbV allowing
downloads the App from their phone stores link multiple accounts, purchase airtime customers to pay fees and make payments
and gets activated at any of ADB’s 81 from all networks for themselves and online securely, QuicStatements, to receive
networked branches with their preferred others with bonus airtime, pay utility bills account statements in emails for free daily,
usernames, the customer can easily check like Dstv, Transfer MTN Mobile Money, weekly, monthly and quarterly; and QuicPay,
the status of all accounts and Loans with Vodafone Cash and Tigo Cash, access convenient collections platforms for school
the Bank. forex rates, among others, on their phones. fees, electronic vouchers, ECG, Dstv,
This presents absolute financial control biometric passport and WAEC payments,
and comfort, cuts the hassle and cost of NLA, MTN Mobile Money and Tigo Cash
commuting to the banking hall for GHS1 transactions. These all offer customers a
per month,” he noted. one-stop shop for all payments. The other
is QuicAlert, to receive SMS notification on
On partnerships, Mr. Atefoe said the Bank all transactions on customer’s account for
has partnered MoneyGram to introduce total control, among others.
a new service which ensures all money
remittances from abroad are credited Mr. Atefoe concluded that ADB has
directly to the customer’s bank account in expanded its business by setting up three
Ghana instantly. This, he observed, gives more trade desks in Kumasi and Takoradi
great convenience to customers, saving to support importers and exporters in these
them commuting time and paperwork. “The areas. He maintained that ADB would
service dubbed ‘MoneyGram Direct’ or continue to develop innovative products
MoneyGram to Account allows customers which will ensure that customers experience
to receive remittances directly into their optimum convenience and receive value-
bank accounts in Ghana. Customers can added services in order to attract and retain
further access funds via all ATMs or can more customers.
easily use ADB’s mobile App to transfer

The Business Executive 39

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Banking Survey

Stanbic’s ‘Mobycash’ touted
as most innovative digital
product

Stanbic Bank Ghana’s ‘MobyCash’ has been Best of all, they have shown how to channel creativity into valuable
recognized by Global Finance magazine as the most products and solutions.”
innovative digital product in the cash management
sector, as part of its top innovators publication for The seventh edition of the annual awards of the magazine
2019. This was announced in a press release issued recognizes entities that regularly identify new paths and design
by Global Finance in New York, United States, on 29th April, 2019. new tools in finance. The 2019 Innovators honorees will be
recognized at the Global Finance Digital Banks Awards Dinner on
Stanbic Bank’s ‘MobyCash’ solution is a market leading innovation 30th October, 2019 at the Sheraton in Hong Kong.
which provides clients with secure and convenient on-location cash All selections were made by the editorial board of Global Finance
management. It is a Mobile Cash Deposit App for capturing and with the input of experts on the functions being served by these
transmitting customer transactions together with corresponding innovators. Entries from banks and other organizations were
images of deposit slips for onward posting via STP into Finacle carefully considered as part of the decision process. Global
via Finacle Integration web service with real time notifications to Finance, founded in 1987, has a circulation of 50,050 and top
customers. prestigious readers in 188 countries. Its circulation is audited by
BPA.
The ‘MobyCash’ serves the needs of big corporate organizations,
SMEs and the bank itself in different ways. For big corporates, the Earlier, Stanbic Bank won the Auto Finance Company of the Year
need for real time value for on-site cash collections becomes a at the 2016 Ghana Auto Awards, and the Best Bank in Product
reality. The App serves the need of SMEs in market locations via Innovation at the 2015 Ghana Banking Awards. Also, due to its very
a mobile point of sale (POS) application to a secure bank cash, good performance, Stanbic Bank was awarded Top Performing
thereby providing real time value for working capital. For the bank, Business, Best Financial Institution and the Best Bank in Ghana by
the ‘MobyCash’ solution offers real time agency banking at bank the Ghana Investment Promotion Centre (GIPC).
agent locations.
Stanbic Bank Ghana was established in 1999. Since 2007, the
Commenting on the award, Mr. Patrick Quantson, Head of Digital bank has expanded its branch network to nine out of the then
Transformation at Stanbic Bank Ghana, said the ‘MobyCash’ ten regions in Ghana to support clients’ needs. Stanbic Ghana
solution is a product of a careful study and an understanding of is licensed by the Bank of Ghana, the central bank and industry
how the market works and the needs of the market. “Prior to the regulator.
deployment of ‘MobyCash’, customers would only realize cash
deposits into their accounts at close of business, that is at the point Stanbic Ghana provides a full range of consumer, business, and
when the cash pick vans return to the cash processing center after corporate and investment banking services to clients who require
which the entire cash pick value is checked and validated before a local banking partner with international reach. It is a Tier One
posting is done to the customer’s account. We realized the effect bank and was the third largest bank in terms of share of industry
of this unduly long process and hence developed this innovative operating assets in 2014, per PwC.
concept,” Mr. Quantson said.
Stanbic Ghana services the evolving needs of local and
The quality of the ‘MobyCash’ innovation was validated by Mr. international clients, delivered by over 1,500 employees at 36
Joseph D. Giarraputo, the publisher and editorial director of Global branches, along with 60 ATMs and its advanced online banking
Finance magazine. According to Mr. Giarraputo, “the financial services. Through Stanbic Ghana’s growing branch network,
institutions winning Global Finance’s The Innovators 2019 honors the bank increasingly provides personal and business banking
excel in breaking down silos to unleash creative thinking. services to the local consumer market. Its Wealth Unit services the
needs of high net worth individuals and provides quality banking
services to corporate leaders and professionals.

Stanbic Bank Ghana’s Corporate and Investment Banking team
combines an in-depth understanding of local market conditions
and drivers with Standard Bank’s, Stanbic Bank Ghana’s South
Africa-based parent institution, experience in emerging markets
to develop client-focused solutions, customized to each client’s
unique requirements.

42 The Business Executive

The Business Executive 43

Banking Survey

SG Ghana banks on CSR to
make more profits

Societe Generale (SG) Ghana has been SG Ghana’s networked 42 outlets SG Ghana started as Security Guarantee
prioritizing Corporate Social Responsibility nationwide are linked up by VSAT, radio, and Trust Limited, which was founded in
(CSR) to help it make more profits. SG Ghana fiber optics to facilitate easy, safe and quick 1975 as a private limited liability company
interprets ‘CSR’ to mean Care, Share, Respect access to its services and products which to provide banking services. In 1976, its
and operates with these values. include savings, current and corporate name was changed to Social Security
accounts; receiving salaries; and making Bank (SSB) Ltd. and began operations
Thus CSR is a day-to-day duty which payments. The others are special student in 1977. The bank’s name was changed
characterizes all bank’s internal and external offer, transfers, money remittance, cards, to SSB Bank Ltd. in 1998. In March
activities. Having a global policy on CSR, SG digital products, credit, investment and 2003, Société Générale Group of France
Ghana externally sponsors sports, health, bancassurance. With ATM cards, customers acquired a controlling interest in SSB
education, art and culture and the environment; can access funds 24/7, using any Visa- Bank Ltd. On 31stMarch, 2004, the
and internally cares for and respects its branded ATM. In providing these services company’s name was changed to SG-
stakeholders: shareholders, employees, and products, SG Ghana offers its clientele SSB Limited to reflect the new corporate
customers, regulators, suppliers, communities premium experience banking. strategic focus. In 2013, shareholders
and the environment. Generally, CSR is a approved a name change to Societe
valued concept within the Societe Generale Its mission is to create the most preferred Generale Ghana Ltd.
Group the activities meet the needs of the banking institution which employs its
present generation without compromising the core values of team spirit, responsibility, As a subsidiary of the Société Générale,
ability of future generations to meet their needs. commitment and innovation to provide one of the largest European financial
quality products and services that best services groups which, based on a
The management and staff of SG Ghana jointly satisfy the needs of its customers. The bank diversified universal banking model,
donated GhC160,000 to the Ghana Heart provides individuals and corporate clients combines financial strength with a
Foundation in Accra in May 2019. The CSR with tailor-made banking services. It has strategy of sustainable growth. It aims
programs have paid off in terms of profitability. been recognized with several awards for to be the reference for relationship
For example, SG Ghana made a net profit of supporting its stakeholders to achieve their banking, and chosen for the quality and
GhC90,507,000 in 2017, as against GhC63, full potential. commitment of its teams.
899 in 2016, a difference of about 41.6%. In
2018, the bank recorded a profit after tax of Represented in every region, it occupies a With over 148,000 employees who
GhC 61,972,285. robust position in the banking sector. The are based in 76 countries, Société
bank pursues a balanced growth strategy Generale’s experienced and dedicated
In the post-restructuring ecosystem, SG for its deposits, credit, retail and corporate teams offer advice and services to
Ghana is upping its game to increase profits in services. SG Ghana is listed on the Ghana individual, corporate and institutional
2019 and in the subsequent years. The bank Stock Exchange, and is a member of Ghana customers. The Group has strong links
is strictly and assiduously implementing the Club 100. to Africa with presence in 19 countries.
Corporate Governance Directive issued by the Eleven of its African subsidiaries are in
Bank of Ghana in 2018. West and Central Africa, namely Benin,
Burkina Faso, Cameroon, Côte d’Ivoire,
Chad, Equatorial Guinea, Ghana, Guinea,
Mauritania, Senegal and Togo.

44 The Business Executive

The Business Executive 45

GhSapencaialBSeupypolenmdenAt id

Berock Ventures delivers
exquisite projects timely

Berock Ventures Limited (BVL or Berock) is nationally
reputed as a first-class construction company
which undertakes projects excellently in line with the
requirements of the ‘Ghana Beyond Aid’ agenda.

A wholly-owned Ghanaian limited liability company incorporated Mr. Rockson Kwesi Dogbegah, Founder / Executive Chairman
under the Companies Code on 22nd February, 1996, BVL has
been engaged in road and general building construction; civil Berock put up the Multi-Purpose Academic Block (Phase I) for
engineering and electrical works; suppliers of general goods; Kumasi Technical University; educational facilities in the Kwahu
import and export services; import and sales of construction East District of the Eastern Region for Millennium Development
equipment; and consultancy in marketing and civil works. Authority; Administration Block for University Of Professional
Studies; and Computer Laboratory for Ho Technical University.
BVL’s mission is to provide quality civil engineering, general It also constructed the National Blood Centre at Korle-Bu; ICT
construction, consultancy and merchandising services to Park at Tema Free Zones for Ministry of Communication; and
individuals, private and public institutions through qualified Office and Scanner Block for Gateway Services Limited at
professionals to meet clients’ expectations. Its vision is to be Tema Harbor.
the Number One building and civil engineering construction
and consultancy business with delighted clients. Its core values Berock has made many Corporate Social Responsibility (CSR)
include speedy delivery, professionalism, team work, integrity contributions to society. Mr. Rockson Dogbegah’s illustrious
and customer care. initiatives and leadership earned him the accolade the “voice”
of the construction industry in Ghana. Mr. Dogbegah’s thought
Berock is committed to the ‘Ghana Beyond Aid’ agenda of leadership skills was applauded when he organized the First
the current government by improving the quality of life of National Building and Construction Excellence Awards. In the
Ghanaians and contributing to national development through era of ‘Ghana Beyond Aid,’ he said it would be most appropriate
the provision of appropriate and sustainable infrastructure for the government and private sector organizations to put their
development solutions and civil engineering works which are confidence in indigenous firms like Berock and give them the
delivered in a professional, timely and qualitative manner. opportunity to undertake major projects so that the country
Efficient Project Management can develop at a faster rate.

As the main contractor, Berock has rich experience in the
management of projects. Its experienced and qualified team
applies well laid down procedures and processes to projects,
and ensures that professional supervision and coordination
of subcontractors are well done in order to deliver projects
efficiently for clients’ satisfaction.

Berock has executed hundreds of important projects across Industry peers and clients have commended Berock on many
the length and breadth of Ghana. The projects, among many occasions for its efficient and timely execution of projects. Due
others, include the construction of six-storey Head Office to its exquisite works, Berock has won multiple awards and
Building for National Petroleum Authority; Shops and Offices recognitions which include:
Complex at Community 2 for Tema Development Corporation;
seven-storey Training Academy Extension Complex for Ghana • Ghana Property Awards -
Civil Aviation Authority; and 12-storey Office Complex for
Ghana Shippers Authority. 2014 – Property Developer of the Year
2015 – Developer of the Year, Mixed Use
Berock constructed the Auditorium and Lecture Theatre for 2016 – Developer of the Year, Multiple Use
School of Business at KNUST; four-storey Examination Halls 2017–BestCommercialHigh-Rise Developer
and Lecturers’ Office for KNUST; five-storey Classrooms and
Offices for College of Engineering for KNUST; and completed
Offices for International Students Program at University of
Ghana.

46 The Business Executive

GhSapencaialBSeupypolenmdenAt id

• Ashanti Business Excellence Awards - • Other Awards -

2012 - 9th Ashanti Business Excellence Awards (Gold Award), 2016 - Ghana National Chamber of Commerce & Industry:
Building Contractor of the Year ‘Chamber Business Awards’, Building and Civil Engineering
2016 - 13th Ashanti Business Excellence Awards (Gold Contractors
Award), Building Contractor of the Year 2016 - Entrepreneurs Foundation of Ghana: 5th Ghana
Business Quality Awards:
2019- 16th Ashanti Business Excellence Awards: Building Business Quality in Building Construction Industry Award’
Contractor of the Year (Gold Award)
Ghana @ 60 Independence Anniversary Celebration
• Ghana Construction Awards - Diamond Jubilee Business & Financial Services Excellence
Awards, ‘Special Award.’
2015 - Construction Company of the Year
2015 - Building Project of the Year, Construction of Offices & • 3rd West Africa Construction Awards -

Scanner Building for Gateway Services Limited 2018 - Indigenous Construction Company of the Year
2016 - Building Project of the Year, Construction of Shops Construction Executive of the Year - Mr. Rockson Kwesi Dogbegah
Top 10 West Africa Construction Leader - Mr. Rockson Kwesi Dogbegah
and Offices for TDC

Construction of
12-Storey Office
Complex for Ghana

Shippers
Authority

Tullow Ghana’s redeveloped
office building at Air Force Base
in Takoradi

Road constructed for
Bolgatanga Regional
Hospital Rehabilitation

Project – Phase 3

For more information, contact: +233 302 814301; +233 302 814302; 47... berockventures.com ...

+be2r3o3ck2v4e4n7t5ur1e9s2@7yoarho+o2.3c3om57V7i6s5it:1w92w5w; .abnedroTinchfkoev@enbBteuurroescsik.ncvoeemnstusresE.cxoemcourtive

Special Supplement

Ghana Beyond Aid

FDA embracing ‘Ghana Beyond
Aid’ with proactive action

Functions of FDA

The FDA is under the Ministry of Health, and its
functions are spelt out by the Public Health Act,
2012 (ACT 851) as follows:

• Ensure adequate and effective standards for
food, drugs, cosmetics, household chemicals
and medical devices;

• Monitor through the District Assemblies and
any other agency of State compliance with the
provisions of this Part;

The ‘Ghana Beyond Aid’ agenda has been She called for local packaging companies to • Advise the Minister on measures for the
given practical expression by the Food and assist in the packaging of locally manufactured protection of the health of consumers;
Drugs Authority (FDA) as the Authority is products in the country. According to her, the
promoting the patronage of locally produced lack of such companies compelled most local • Advise the Minister on the preparation of
goods in the country through proactive companies to resort to import goods from effective Regulations for the implementation of
demonstration. The action of the FDA is China to make up for the non-availability of this Part;
based on the main objective of the ‘Ghana the products, which invariably increased their
Beyond Aid,’ which is economic self-reliance. cost of production, thus, making them to be • Approve the initiation and conduct of clinical
non-competitive. Mrs. Darko said the FDA trials in the country; and
The FDA has recently been coaxing had set up a special office to deal with the
supermarkets and foreign retail shops in registration of locally manufactured products • Perform any other functions that are ancillary to
Ghana to sell locally produced goods in a expeditiously, and that the office did not attaining the objects of the Authority.
spirited campaign known as “Made in Ghana compromise on standards.
Display.” To implement the action-plans under The Object of the
the campaign, the FDA has engaged, and is She said the FDA was making every effort Authority
engaging, with major supermarkets and retail to assist the local industry meet international
outlets to allocate specific sections in the standards. “It is worth noting at this point that, The object of the Authority is to provide and
supermarkets and shopping malls for ‘Made the food industry contributes hugely to the enforce standards for the sale of food, herbal
in Ghana’ products. local economy and the efforts of the FDA to medicinal products, cosmetics, drugs, medical
bring this industry to international standards devices and household chemical substances
The campaign is aimed at ensuring easy and create more shelf space for it in our local
access to local products as well as deepening supermarkets cannot be overemphasized. Vision of FDA
the market for ‘Made in Ghana’ products. At We urge the local manufacturing companies The vision of the FDA is to become a center of
a recent encounter with the media in Accra, and start-ups to take advantage of this and excellence in food and drug regulatory affairs on
Mrs. Mimi Delese Darko, CEO of the FDA, register their products so they can equally the African continent.
stated that some of the targeted shops have compete on the market,” she said. Mission Statement
already begun dedicating prime shelves for
goods manufactured in Ghana. At the Accra encounter, Hon. Kojo Oppong The FDA aims to implement the appropriate
Nkrumah, Minister for Information, added in regulatory measures to achieve the highest
Mrs. Darko launched the “Buy Ghana, Love a word to back the industry regulator: “the standards of safety, efficacy, and quality for all
Ghana” campaign at Koala Supermarket FDA is also poised to expedite the registration food, drugs, cosmetics, household chemical
in Accra. The intention is to persuade other of locally manufactured products to meet substances and medical devices (hereinafter
retail shops to follow the steps of the FDA as International standards. This will facilitate easy referred to as products) locally manufactured,
a pioneer in championing and advocating for admission into global retail outlets both here imported, exported, distributed, sold, or used,
the production, packaging and promotion of and abroad.” to ensure the protection of the consumer as
indigenous products. She also visited Marina envisaged by the law regulating food and drugs
Mall which has taken to the devotion of special in force in Ghana.
shelves for stocking locally manufactured
goods for sale. Supermarkets like Palace, Max FDA also regulates blood and blood products,
Mart and others have also started displaying tobacco and tobacco products as well as the
‘Made in Ghana’ goods. regulation of the conduct of clinical trials in
Ghana.

48 The Business Executive

Special Supplement

Ghana Beyond Aid

WHAT THE REGISTRAR-GENERAL’S
DEPARTMENT DOES TO SUPPORT
BUSINESSES

The Registrar-General’s Department (RGD) Mrs. Jemima Oware, the Registrar General
carries out the following services:
RGD’s NEW
• Registration of Limited Liability Companies. REGISTRATION SYSTEM
• Registration of External Companies.
• Registration of Companies Limited by Guarantee. The Registrar-General’s Department is currently updating
• Official Liquidations. records of existing companies and Businesses into a new
• Incorporation of Partnerships. electronic database dubbed the e-Registrar software. With this
• Registration of Business Names/Subsidiary Business Names osyf sCteommpaallnDieisreacrteorrse,quSierecdrettoarhieasv,eSthheairre ohwolndeTrasxaIdnednAtifuicdaittoiorns
• Registration of Civil Marriages. Number (TIN) separately from that of the Business Entity which
• Administration of Estates/Payment of commuted pension can only be generated after the submission of their individual
• Inspection of Companies with regard to statutory compliance TINs.
• Registration of Industrial Property Right, including Trademarks, This will enable RGD synchronize data with the Ghana Revenue
Authority and the GcNet under the Ghana E-Government
Patents, Industrial Designs, Geographical Indications. (GeGov) project to facilitate online Registration. Businesses are
• Registration Professional Bodies. to note that the Department has
• Registration of Adopted Children.

The Business Executive 49

Special Supplement

Ghana Beyond Aid

PROCEDURE FOR Form 6
BUSINESS REGISTRATION
• Increase of Equity in kind otherwise than
NB: Applicant must first acquire a TIN before proceeding to cash in the Forms of imported machinery equipment
the RGD desk for their Business Registration. and goods, Raw materials, etc. this Form should be
stamped at the Land Valuation Board before being
Step 1 Applicant conducts enquires/ Name of Business filed at RGD.
search at Help Desk
Form 9A
Step 2 Applicant must complete the requisite Form and
submit to a verification desk at the front office • Filing of charges on the assets of Limited/
Unlimited and Partnerships. They could also be
Step 3 Applicant must submit the validation form to any Churches, Clubs, Organizations and Foundations.
of the clerks at the data entry cages for data Upon liquidation, if the Charge/ Mortgage/
capturing and collect payment slip (free service) Debenture is registered with the Department that
company would be a secured creditor and be settled
Step 4 Applicant must submit the payment slip together first.
Step 5 with the form to the in-house Fidelity Bank for
payment. Form 10

Applicant finally submit the endorsement form to •To complete a satisfaction of charge instrument
the Receiving and collection Desk for processing (Discharge), this should be stamped at the Land
Valuation Board before being filed at the RGD
N/B: SMS will be sent to applicant for collection of Registration
certificate(s) and certified True copies of Document. Form 20, 21

AMENDMENT FORM •These are used to register External Companies
FOR REGISTRATION
COMPANIES Form 22, 23

Form 17: •These are used to file alterations or amendments
for External Companies already registered.
•Particulars of change in director(s)/secretary.
Applicant should add Acceptance letter from Form 24, 25
appointee.
•Resignation/removal of Director (s) or secretary. •These are used to file the dissolution or cessation of
Applicant should add resignation letter/resolution operations of an External Company.
Removing Officer under S.185 of Companies Act
1963 (Act 179) Transfer of shares: Applicant would have to prepare
a Share Transfer Instrument and stamp it under the
•Change of director (s) or Secretary’s Name and stamp Duty Act at the Land Valuation Board before
Signature should be supported with an affidavit filing it at RGD.
before processing
NB: All amendment Forms should be signed by an
Form 15: Existing “Director/secretary”.

•Change of Auditors Form D:
•Acceptance letter from new Auditors/Resignation
letter from old Auditors (sometimes) Amendments to a Sole proprietorship:
•Personal Name, Nature of Business
Form 13: •Postal address, place of Business
•Change of Name and signature should be
•Change of Address, office location, contact supported by an affidavit
numbers and email addresses •Transfer of a Business Name to another Proprietor

Form 7&8 Form B

•These are the Forms used to reflect an increment • Change in Partnership
in the stated capital, -0.5% duty is applicable on the • Additional Partners
difference between the old and new stated capital • All these should be supported by a supplementary
deed and stamped at the Land Valuation Board

50 The Business Executive