Tuesday, Aug 03

20 Most Outstanding Business Personalities In The Last Two Decades

Giant oak trees planted two or more decades ago as mere fallible seeds, stalwartly entrenched themselves deep into the soil and with time, persistence, diligence and a torrent of other notable virtues sedulously worked their way to a well-regarded status as Businessmen and women eulogized in the 20 Most Outstanding Business Personalities.

Surpassing every indignation, negativity and hostility, they took an oath and swore no secrecy to obscurity as they went on a mission, fully armed to change the somewhat grim story of their lives to attain true honor and nobility among the ‘blue blood’ of society.

Divide and conquer was their anthem as they identified the various sectors and industries within the business enclave and like a match, made in heaven and with synchronised efforts, they have undeniably impacted not only citizens but the country of their birth in phenomenal ways. Their offshoots currently serve as perching spots and a safe haven for fledgling ideas and businesses for inspired youth to thrive.

2020_Corporate_New-02.jpg

Badge of Honor

The ‘20 Most Outstanding Business Personalities in the Last Two Decades’ is a recognition scheme to venerate outstanding Business Personalities who have excelled in their various enterprises as a result of their shrewd business practices, decisions and foresight within their establishments that has unfurled commendable national impact. They have relentlessly survived every business headwind and at some point, in their various enterprises, they have had to make hard decision which as an implication of their shrewd business practices, incisive decisions and foresight within their establishments that has garnered nationwide commendation and impact.

Unarguably, the last two decades have witnessed two major crises that have affected global output and downgraded profitability of businesses; a financial crisis in 2008/2009 and the current health crises (COVID-19). Both have invariably altered the various business environments and led to a new definition experienced in the business landscape. Thus, survival is the catchphrase for meriting such esteemed recognition in spite of the harrowing scenes which act as a testament of their resilience.

The Vaultz Media Research Team, in line with recognizing the ‘20 Most Outstanding Business Personalities’, carefully designed a methodology to select these business personalities who gracefully thrived in the midst of these circumstances over the past 20 years; a feat eliciting our successful compilation of the twenty top business personalities.

Selection criteria of personalities went through 3 main phases.

In a bid to achieve utmost credibility and fairness in recognizing deserving businessmen and women. The Vaultz Research team diligently dug deep into bringing out the best on the business landscape. In the first phase, a list of 100 businessmen and women who have excelled in their respective positions, representing various sectors and industries within the Ghanaian business landscape, over the past 20 years were carefully selected by the research team. Following this, these 100 personalities were meticulously drilled through apt critiquing and found to be of a ‘sound standing’ with ‘high integrity’ in the business landscape within the past 20 years and under the team’s consideration.

Having sifted through the throng of businesses in the country, the second phase involved a thorough background check on the profiles and business performances of the short-listed participants over the last 20 years. This involved analyses of key indicators that characterize how vibrant their organizations were performing. The variables considered include: Consistency in business growth, Corporate Social Responsibilities (CSR), Tax Returns with the GRA, Employability, Innovation, and General Customer satisfaction with products or (and) services. The data collated witnessed participants who were later scaled down from the initial hundred to fifty for the next phase of the selection process.

The third and final phase which resulted in the selection of the 20 personalities, who stood tall in the past two decades. We acknowledge that each personality recognized by the Vaultz team are distinct and unique in their operational models exacted in their various businesses. Their personality trait, we reckon, significantly impacted their business dealings and based on an assessment, participant’s personality traits in bringing finality to the matter primarily focused on their Leadership skills, Managerial abilities that have helped push boundaries and come up with visionary ways to progress their businesses, their adventurous entrepreneurial spirit, sense of personal social responsibility, versatility etc., which has brought them this far.

Predominantly, the final list of the ‘20 Most Outstanding Business Personalities in the last two decades’ is therefore based on merit and excellence exhibited by these men and women who are exemplars and respected luminaries as they have not only followed their dream, but have equally made room for more ‘dream laden’ young men and women who idolize them to make something out of their lives. In light of that, we extend our felicitations to these gallant business personalities who have excelled in the past two decades and also welcome them to the new decade draped in possibilities, hope, opportunities and improved way of attaining more for the growth of not only their businesses but the development of the country in the process.

Who Makes The List3x

 

"All I pray is for God to grant me more years, so I would be able to do more"

"All I pray is for God to grant me more years, so I would be able to do more"

Unquestionably, we all have dreams which gives wings to our desires. But what fuels and propels those dreams to travel tirelessly the distance with us, is the conviction we have about them. Dr. Kweku Oteng by pure grits and passion has proven by his decades of business achievements that attaining high educational credentials isn’t the only justification for success in life. Experience, self-improvement, focus and godly principles are the merits which have galvanized his dreams and validated his ambitions in life. With such fiery, versatile and hard-line precision in birthing and actualizing the conception of each idea, the business magnate takes us on a sublime journey depicting in graphic details his candid and uplifting success story.

TVM: The Angel Group has left its imprint on the country’s economy by providing employing opportunities for the multitudes. How did the journey all commence?
DKO: The Angel group’s journey started from the Herbal Angel soap production, from around 1996/1997. The product truly worked for people across the length and breadth of this country. Then, I gradually introduced angel cream, angel natural capsules, angel herbal mixture; these were the products I added. If you look at how the products were, they worked so well. In time past, there was this ailment affecting children. And it was difficult to cure. It was my products that cured or rooted out that ailment completely. There were two of them specifically. One was eczema and the other was ringworm. These two ailments were troubling children a lot. However, through my products, we were able to find lasting solution to the two across the country.

Then, I considered engaging in something that would be more beneficial to the country. It was in that process I thought of venturing into education, precisely to establish an education complex and that led to the establishing of the Angel Education Complex.

The truth is, there was a vast land available and in close proximity to where the factory for the Angel cream and soap was sited. So, I decided to purchase the land. Initially, I didn’t have the said amount so I requested some of my friends to purchase it with the intention of acquiring it from them later. However, they also couldn’t afford the price as well. The land was for the Queen mother of the town so I approached her to express my interest. She then questioned if I could afford the amount she was requesting and confidently, I responded in the affirmative. However, I didn’t have the amount required. This was in the early part of the new millennium. Nonetheless, I raised part of the money demanded by the Queen mother for the land and deposited it with her. I, then, consistently paid the balance till I completely paid off the total amount involved.
After completing the payment, construction of the school began. My initial plan was to accommodate a total of 3000 students. As such, I constructed a huge facility to meet up that purpose. The hostel facility as of the moment can accommodate about 2000 persons. Beyond the facility, I purchased about 16 buses to convey students from the various locations of the Kumasi township. My plan was to ensure easy accessibility to and from the school, without making transportation a hindrance. Thus, the school’s student population was huge at the time and was one of the most populous schools in the region and it still is. At the moment, the population has reduced because of the impact of the COVID-19 with a current size of about 1800 students.

kwaku oteng new top wide 100Subsequently, I realized I needed something new and that was how the radio station came to be. I started Angel Fm (96.1) in Kumasi and all of a sudden, the radio station became very popular. The station became one of the top three radio stations in the Ashanti region just after three months of commencing its operations. This is because when I am determined to do something, I go all out to get it done without any casual approach to it. That’s the kind of person I find myself to be. I make sure I undertake every one of my engagements with all sense of responsibility in order to get the right results. As such, I like good things. Fortunately, the radio supported my operations. Strategically, what I did was to identify people who had the experience and had practiced radio for long and brought them together to run and manage the business for me. And that led to the business flourishing.

The success of the radio station led to the establishment of other media stations across the country, under the brand name Angel Broadcasting Network (ABN). The ABN houses 19 radio stations and 2 television stations across Ghana.

From the media, I then ventured into the transport business as I wanted a new experience. So, I established the Angel Transport service. This is a haulage business. From the onset, I purchased a lot of petrol tankers to convey petroleum products from one place to another for the government. However, this business experiences various challenges as a result of the political nature of the country. As such, it affects the business operations.

After the transport business, I moved into the real estate and properties industry, the Angel Estate. The Angel Estate and Construction Ltd. located at Nkoransah, off Santansi road, currently has two sites, the old and the new. Both sites have affordable houses of about 50-100 units.

From there, I considered to venture into the beverage industry. So, I started Adonko Bitters Ltd. The company is just about five and half years into operations. Currently, the company has about five products. The whole products have served their purposes to their various consumers. Besides, the Adonko bitters, which is the flagship product, has truly helped a lot of consumers. The Adonko bitters originated from my previous herbal product, the Angel Natural Capsules. These capsules were for the men. The Adonko bitters is brewed through the extraction of the sap from eleven different herbal plants. These plants (trees) can only be found in thick forests and aren’t readily available. They are very medicinal. For instance, in the olden days, our great grandparents loved to chew some of the roots of these trees and their sticks. Though they served as ‘chewing sticks’, they were also medicinal. A typical example is the root of the cocoa tree (Theobroma cacao). And so, the medicinal efficacies of the trees are what has been brewed to become the Adonko bitters. As such, the beverage provides a lot of value beyond just its consumption.

A believer's antidote to poverty is paying one's tithe, because it secures God's blessings. 

Considering the various tastes and preferences on the market, I decided to produce a new flavor to satisfy a different niche in the market. I knew some may like the ‘bitters’ whiles others too may not like the ‘bitters’. So, I developed another alternative product called ‘Adonko Atadwe ginger’. This product is a mixture of the ginger we use in our daily seasoning of foods at home and tiger nuts, is locally called ‘atadwe’. These tiger nuts have a lot of health benefits. They are imported from Burkina Faso. As a result of the health benefits from the two products mixed together, the Atadwe ginger has a lot of health benefits for both men and women.

Kwaku Oteng 4

After the successful penetration of the ‘Atadwe ginger’, I subsequently formulated the Adonko 123 bitters which is a blend of herbs and ginger. It is a product that has also gained rapid recognition among consumers. It’s equally good and appreciated by many.

All these products are organically composed without any chemicals or additives added to them. So, it makes them wholesome for consumption. As a result of their wholesomeness, they are exported to other countries like Nigeria, Germany and the United States of America. For instance, in Germany and the USA, they appreciate our products a lot especially in the U.S. As such, we have been given a land in the U.S. to establish a factory there to manufacture these products and we’re hoping in the course of the year, by God’s grace, we’ll establish the factory to start production. This feat is also to be replicated in Germany as well. Germans appreciate the products very much because we sent some of the products there to be researched on. The company that was involved in the research is the leading research company when it comes to products research. And so, when you send your product there and they approve of such a product, it can be accepted in the whole world. Hence, after the testing of my products, they found that its potency was high. As a result of this, I receive a delegation of minimum four from Germany every four months in my factory here in Ghana to inspect my operations. Besides, all my equipment is from Germany. 

Subsequent to this is the ‘Adonko Next Level’, which is an energy drink in the Adonko products line. This product is currently
produced in Germany. It is a collaboration between the Adonko Bitters Company Ltd. and another German group in Germany. The Germans upon realizing my knack for good herbs decided to partner me to produce the product. This energy drink differs from those on the market as its caffeine quantity is minimal and has no side effect.

Presently, my new itinerary is to produce soft drinks as well as mineral water. As such, I have constructed a very huge factory in Kumasi and have imported the required equipment for the operation. And hopefully, in August, that will also commence its production.

TVM: As a businessman, you have been involved in various enterprises for over twenty years with successful establishment of ventures spanning various sectors and reach. What will you say defines your growth performance with respect to your companies’ accomplishments?
DKO: I see it as the grace of God that has made it possible. Because even when I started Angel cream, it got to a time the money to continue my operations was difficult. But how God used a friend, who was then trading in Elubo to come to my aid was a miracle. He came to purchase some of the products and realized I was struggling with capital and so he volunteered to help. As to why he helped me, till today, it’s still a mystery. But I think it was God who led him. The truth is, from my childhood, I observed that there was a kind of special favour on me. This, numerous servants of God at various stages, acknowledged once they set their eyes on me. Besides, I was a very calm boy. Amongst my friends at the time, I was the one their parents exemplified for their children. I was a very calm boy, extremely calm boy. So, I see this favor as a blessing from God himself onto me. That’s why Ghanaians appreciate my products. It’s not because of my effort or ability but it’s by the grace of God.

Kwaku Oteng 1

Above all, everything that I do, I do it well. There’s nothing that I do that I don’t do it meticulously.
Before a product is brought on to the market, it can take me up to about two years of extensive research. Unlike some others who just wake and launch products without thorough research, I don’t do that. I conduct extensive research to ensure every information is covered and properly understood before the product is launched. For instance, with the new factory that is yet to be commissioned, I have about seven products which include: Adonko Zero, Angel Mango, Adonko Cocktail etc. all these products have been undergoing research for the past three years. So, the root of the success of all my products on the market is first by God’s grace, followed by my commitment to ensure I deliver the best to the customers. These make everyone tend to appreciate everything I bring on to the market. The truth is, I have never done anything in the past and had any complications, no; it’s never happened. Because I am the first consumer of my products and as such, I ensure they are good for consumption.

TVM: What are the future prospects for the Angel Group?
DKO: More is yet to come. Currently, I think I have just done about 5% of the things I intend to achieve. So, I have not gone far at all. All I pray is for God to grant me more years, so I would be able to do more. I want to impact lives and destinies. I want every Ghanaian to benefit from me before I finally hang my boots.

TVM: Dr. Kwaku Oteng is a household name of high repute who has contributed massively towards the advancement of Ghana’s economy. Beyond the name, can you briefly tell us about the man behind the “Angel Group of Companies”?
DKO: I am Dr. Kwaku Oteng as you rightly mentioned. I am the Director of the Angel Group of companies. I am a native of Atwima in the Nkawie District of the Ashanti Region. My hometown is Koben and I was born at Toase. My mum and Dad met at Toase and I was the product of that relationship. Unfortunately, my Dad never took
responsibility for the pregnancy and my birth. Nonetheless, it was my maternal grandfather who instructed my mother not to abort the pregnancy (that is me) and that he would take up the responsibility. He ensured that I was not aborted. After several years, no one ever saw or heard from my biological father.

Therefore, at about the age of three, my mum got married to another man, my step-father. It was my step-father who took care of me till the age of maturity. My step-father passed away around 1987 and that was when I realized he wasn’t my biological father. I remember wailing sorrowfully almost every day when he passed away. And one day one of the tenants questioned why I mourned over the man as if he was my biological father. This really came to me as a surprise as I had never known him to be my step-father. It was then that reality set in and I realized he wasn’t my biological father. However, he took care of me like his child, so I loved him as my father.

Kwaku Oteng 2

However, I met my biological father when I was about 27 years old. It was a tearful experience. I recall I was with three of my auntie’s children, who were of the same age as me, and my dad was requested to identify me among the lot but he couldn’t. It was a harrowing experience. That was the moment I met my biological father for the very first time.

After meeting my biological father, I just had to love him and let go of the past. He’s also gone to be with the Lord and it’s been eight years already. I recall my mother never wanted me to associate with him because she felt he had acted irresponsibly but he is my father and nothing could change that. However, I always say to people I am grateful to my mother for not aborting me else would people have benefited from this blessing? So, I have also advised myself that on no occasion will I impregnate a woman and cause her to abort because if I had been aborted, I wouldn’t have been a blessing today.

TVM: What is your fondest childhood memory?
DKO: My fondest memories as a child were the moments I was made to pound my ‘fufu’ late into the night before eating. This was a constant part of my growing up as I was always skipping helping my mum with her fufu pounding because of football. I loved to play football. I recall those moments when I go to play football and failed to pound the fufu. By the time I returned, my mother would have served mine in such an inedible manner that will make it impossible to eat. That would require me to now plead with a neighbor to help me so I pound it before eating. That, I can’t forget and I was a very skillful footballer.

TVM: What would you say is the major influence that trapped your passion in being an entrepreneur?
DKO: As indicated earlier, I grew up in the village. Growing up wasn’t easy for me. As a child I walked a distance of 4-5 miles before getting to school. When it got cloudy in the morning, that meant a holiday for me. Unfortunately, I never had any formal education as a result of the ensuing challenges. As a result, I went to train to become a carpenter. After passing out, I started making furniture. I also became a master and had about three outlets. One was at Mamponteng, another was at Asawanse roundabout and the last was at Pankorono. I made all kinds of furniture. I was trained at Kumasi Adum. I was very hard working and as such I learned faster as compared to the other apprentices I met there. It took me one and half years to be trained to become a professional carpenter. Because of my focus and determination, when I decide to do anything, I get it done no matter what.

Once, I couldn’t get a formal education, I motivated myself to work hard to become successful in life. I remember having a thought in my childhood that acquiring education was good but once the person dies, whatever he might have learnt will all be buried along with him or her. So, I decided that since I never had that privilege of having a formal education, I vowed to leave a legacy that can be pointed to in remembrance of me and will be beneficial to the masses. So, that was where my determination stemmed from. Though, people may see it as a disadvantage, it was the willpower I needed to become what I am today. I did all manner of menial jobs but I was never deterred. I struggled through but because I was determined, I never gave up. I made my work my ‘first wife’.

inner Pictures Template Personality Profile 2

TVM: Interesting. But, how did you transition from carpentry into the production of Angel cream and soap?
DKO: While practicing carpentry, it got to a time when I couldn’t realize the progress I desired to see in life. So, a friend approached me that we should venture into the sale of soap– Angel soap. So, we started manufacturing the soap using local methods and commenced its sales. Gradually, we saw improvement and continued. Another friend then suggested we could add some few ingredients to turn it into a cream. We tried it and it worked and that’s how we came up with angel cream as well. I remember hawking the soap and the cream on the streets and that made people mock me because they didn’t understand why a professional carpenter would opt for selling soaps and creams. But I started seeing results and that motivated me to keep going. Seeing the results gradually, I decided to send the soap and cream to KNUST for research to be conducted for validation. I recall one of the professors mentioning to me that the products were very effective. Furthermore, the outcome of the research showed that the cream and soap were better than those on the market then. However, the report was delayed for over a year before it was released. Next, I sent the products to the Food and Drugs Board as well. There also, I encountered a challenge. I was instructed to change the name from ‘Angel’ else the approval will not be given. I was very adamant because that was the name I had traded with and that was the name majority of the people knew the product to be. This resorted to my certificate being delayed. But finally, I got the certificate.

TVM: Given an opportunity to reset yourself, what would you have done differently?
DKO: I don’t think I would have done anything different. I think I appreciate all that I have been through regardless of the challenges. So, given the opportunity, I would go through the same things I went through initially.

TVM: What is one of your fulfilling experiences since you started your entrepreneurial journey. Considering this, what unique legacy would people easily resonate with your operations?
DKO: One that makes me happy a lot is when I see my students close from school and they’re rushing to board their buses or their parents embracing them and taking them home in their cars. I just admire that. I love kids so when I see such, it just makes me happy. Also, I am happy to have employed a lot of people in the various organizations and paying all of them to make ends meet. There’s not a single month that I have not been able to pay my workers. Every month by God’s grace, I am able to pay all my workers. And I am so elated about it. The truth is, at times, getting to the end of the month, I might not have the resources but once the month ends, how God makes the provision even baffles me.

A believer's antidote to poverty is paying one's tithe, because it secures God's blessings. 

TVM: What major challenges did you encounter in your entrepreneurial journey?
DKO: I have been through a lot of challenges in business. BUT one of the most significant of them is the period when I was desiring to expand the operations of the Angel soap and cream. I remember a certain business colleague inviting me to his house to strike a deal with me. He offered me an amount of GHc 3,000 and requested I start producing for him. Because I was in dire need of money, I was tempted to take the money. However, my wife cautioned and advised me not to fall for the temptation. She then advised we keep at what we were doing and that at the right time, luck will smile on us. These days, when I recall the situation, I appreciate God for not allowing me to commit such a big mistake.
Also, I remember when we started the Adonko bitters, just about some few years into operations, we encountered an issue over a program we organized at the Kumasi Sports Stadium. This is my greatest of challenges. We organized a music show at the stadium with all the known artists and some few miscreants, who claimed to have been drunken with the Adonko bitters, started misbehaving. We were charged as a result of their offenses and their claim of consuming the Adonko bitters. These hoodlums misconducted themselves all in order to tarnish the image of the brand and ensure the company was shut down. However, our license was seized and an investigation was initiated by the FDA. The true picture of the situation was that the culprits never consumed the product at the event ground, rather from different environment. It was later we heard that the activity was orchestrated by our competitors just to sabotage our operations. It became a breaking news with various highlights suggesting people died at the venue. Nevertheless, investigations proved that no one died at the event. It was after the whole incident unfolded that some individuals came forward to confess that they were the persons involved and that they were paid to act as such. Indeed, this was an orchestrated activity that involved some media firms, industry players and some individuals. But, in the end, the truth prevailed. Hence, anytime I remember the situation, I feel depressed.

inner Pictures Template Personality Profile 6

TVM: How was the situation resolved?
DKO: The FDA after its investigation realized that what
transpired wasn’t genuine and that it was a planned event. According to FDA’s investigation, they picked intelligence that some of the persons affected by the beverage had been sent to the neighboring hospitals. And as such they visited such hospitals to enquire only to be told there were no such persons in those hospitals. So, after conducting the investigations, it was realized that everything was a hoax. It was after the whole investigations that my license was released for me to continue my operation. In all, I believe it was God who just intervened and came to our help. And also, the FDA did extremely well in its investigation.

TVM: It is noted elsewhere that your first one million cedis (GHc 100) tithe gave you your business breakthrough. Can you elaborate on that?
DKO: What happened is that, this is the spoken word of God that cannot be altered. Above all, none of God’s words can ever change. Consider where God said that a woman shall conceive and on the ninth month she shall deliver of a child, has it changed? Most pregnant women deliver in their ninth month even if it is two weeks more or less. God also said the woman shall give birth to her children in pain, has that changed? So, everything God has said still works till today.

So, if God says, give and it shall be given unto you; good measure, pressed down, and shaken together, and running over, shall men give into your bosom. For with the same measure that ye mete withal it shall be measured to you again. This is God’s rule and cannot be broken.

The tithe situation happened when I was still operating the carpentry business. I realized that every work I did in those moments never yielded any results or profits. Rather I was making losses. And this continued into the era of the angel cream and soap sales. Nonetheless, I was a staunch Christian. So, I approached my head pastor to discuss my situation and he asked if I paid my tithe and I responded affirmatively. Then he said to me to do it faithfully and that if I did it faithfully, I would experience a change in my finances. Indeed, I obeyed and committed faithfully and within a short while I started seeing changes in my finances. It was through that obedience that I was able to purchase my first car. I bought that car from Tarkwa and drove it to Kumasi. It was a miracle because hitherto I couldn’t save, but now I owned a car just because of obedience to God’s word. The car is still there as a testament of my obedience to God’s word. So, when it comes to tithing, I’ll advise that no one should downplay it because it’s God’s spoken verdict and so if you obey and comply, God too will honor His word. I hear people say they pay but they’re not seeing any results. It’s because they’re not doing it truthfully. But if they do it truthfully, they must experience the results. The word of the Lord says all your incomes, take a tenth of it and present it unto God. So, He shall rebuke the devourer for your sake. One thing people must understand is that whether one pays or not, the 100% income is not even sufficient. So, why don’t you pay to secure God’s protection over the remaining 90%. This makes God’s word unchangeable. So, I try to remain faithful in paying my tithe no matter the circumstance, even during the COVID seasons. So, a believer’s antidote to poverty is paying one’s tithe, because it secures God’s blessings.

TVM: With your vast expanse of knowledge and experience in the world of entrepreneurship, what enduring principles have guided you in your journey over the years?
DKO: I’ll say it’s the special grace of God. My enduring principles have been God-centeredness. I am a staunch Christian and as such I fellowship a lot. I don’t joke with my fellowship with God. You know, God says “those who trust in my name, to them I give power to become my sons”. But if you should consider that word of God, you may ask, then who is not God’s Child? But there are some people on earth who don’t believe in God. For those ones, they’re not God’s children because God is clear that only those who trust in “my” name, they are the ones I’ve [God] given power to become my sons. So, the moment you trust that Jesus is your Lord and personal savior, you are counted among God’s children. So, I trust in God a lot and that is why God protects me a lot.

inner Pictures Template Personality Profile

TVM: When the name Dr. Kwaku Oteng is mentioned, a staunch Christian comes to mind but he is also married to more than one wife. People find it difficult to understand how the two quadrates. Any philosophy behind it?
DKO: Currently, I am married to just two wives. However, I believe a lot of people don’t understand the Bible very well. It was Paul who suggested that if it be possible a man should marry just one wife or none at all. So, when you consider the disciples at the time, they were all married to more than one wife. For instance, Moses was communicating with God face to face but he had two wives. David had eighteen wives but immediately he went for another man’s wife, that was when God was angered questioning why he went for another man’s wife. So also, was Solomon found with numerous wives. Abraham was very blessed by the Lord and God even had the covenant of blessing him and he also had three wives. So, marrying to more than one wife is not a sin. Someone may have only one wife and may be struggling to cater for her needs and her children. However, some of us who are married to more than one wife are able to cater for their needs. It’s only hypocrisy on the part of men that makes them pretend it’s a sin. A lot of men in this country who are married have girlfriends or concubines in their numbers. But those of us who are courageous are the ones who bring in the ladies as second or third wives. Some of the men even go to the extent of hiding their biological children because they are born out of wedlock but I don’t do that. For me when I father a child with a woman, I make it public for all to see. I have experienced that ordeal in the past and so I don’t want that child to go through same. There’s nowhere in the word of God that it’s written that a man should marry one wife. So, it’s not a sin. Moreover, everyone who marries more than one wife experiences God’s blessings because you are catering to the needs of God’s creation. You are taking care of the needs of the woman and her family and all these people are God’s creation. So, marrying two or more wives is not a sin. If people had the understanding, they would have all married more than one wife. What gives the most peace of mind is marrying more than one wife.

TVM: What is your management philosophy?
DKO: When you have God, you can do all things. Despite being married to two wives I pray a lot. I can go on my knees to pray for about three hours non-stop. God is able to guide me through every activity I engage. At times through dreams, visions etc., God reveals a lot of things to me; so it guides my operations.

TVM: Known for your philanthropic activities, what motivates you to engage in such benevolent activities?
DKO: First, I must say I am from rather humble beginnings. I acknowledge my background as one from a poor family while growing up. However, one thing that motivates me to be a giver is hinged on the Word of God in Matt 25:41-43. It states ‘for I was hungry and you gave Me no food; I was thirsty and you gave Me no drink; I was a stranger and you did not take Me in, naked and you did not clothe Me, sick and in prison and you did not visit Me.’ And the Word further asks, when did all these happen; and God responded ‘Verily I say unto you, inasmuch as ye did it not to one of the least of these, ye did it not to me.’ So, I hold that Word with diligence that whatever I do to man, I also do it to God as well. Then, if I can help a man with the resources God has blessed me with, then I will. All I wish is for God to keep blessing me to be a blessing to mankind till I go to my resting place.

Kwaku Oteng 3

So, I stand on the Word of God to help the needy but not that I have enough and do not know what to do with the money. Rather, it’s because I have an understanding that whatever I do for anyone, God will recompense me for it. I think it is a kind of grace God has gifted me. If you don’t have that grace, no matter the amount you have, you won’t give. So, I see it as a gift of grace in giving. When there’s prompting of the spirit, I just obey.

All I wish for is: God should keep blessing me to be a blessing to mankind

TVM: What do you do outside of work i.e. your hobbies?
DKO: Hardly do I get time for myself. I love work and so don’t have any specific hobby. For relaxation, I enjoy watching football because of how I was fanatically involved with it in my youth. However, every morning I exercise in order to look fit. It affects me a lot, especially on days I miss or skip my morning trainings. Once I get to train, I feel okay. So, the time for that particular hobby, unfortunately I don’t get it. But in due time, I’ll have the abundance of time to engage in it as I wish. Even though for now the time is not there but I’m okay.

TVM: Growing up, who did you ‘idolize’ and has largely influenced your business ethics?
DKO: Honestly, I had no one like that. One thing I don’t do is to look up to anyone in life. The truth is I don’t like to repeat what others have done or are doing. I always want to do something unique so I can be recognized for my ingenuity.

TVM: What’s your favorite meal?
DKO: Well, I love Jollof rice. Followed by fufu.

TVM: What makes you happy the most?
DKO: What makes me happy the most is seeing someone dance. And, I also admire seeing a lady drive.

TVM: We all can attest to the challenges COVID has wrought in the business environment. How has COVID impacted your businesses?
DKO: COVID has affected my businesses a lot. The truth is whatever God wills, He does. The Bible states that in every situation we should give thanks to God. COVID has truly affected us as an organization. Because all our products: Adonko Bitters, Adonko 123, Atadwe ginger etc., all end up at the bars. So, the lockdown that has been instituted against such sectors has affected our sales direly. Also, a country like Nigeria, where we have a very huge market has been affected because of the COVID; sales have declined drastically. So, COVID has affected us tremendously. It is by God’s grace that we still get some sanitizers to manufacture to support our operations. Other than that, it would have been extremely difficult to cope in business.

TVM: What advice would you give other industry players in this COVID season?
DKO: Employers should endeavor to appreciate the efforts of their workers. There is a proverbial statement that suggests that it takes one to kill a horse for the multitude to participate in its sharing. You founded the organization but you cannot run it alone and that’s why you employ others to work with you. I feel when we love and respect the workers we have, it’s a crucial part of the growth process, the company experience a healthy growth. The kind of relationship established is key to the growth of the organization.

However, employees must desist from the attitude of ‘it’s not mine syndrome’, and get committed to the growth of the organization. This is one thing I think every worker should avoid and be fully committed to the work he or she has been employed to perform. They should see it as their personal work and that is where the blessing is.

TVM: What will be your advice to the youth who desire to leave an indelible print and impact in the society as you have?
DKO: My advice to the youth is to be determined and be truthful in all dealings with people. A lot of young people don’t tell the truth. However, when you tell the truth in every circumstance, you experience God’s blessings. A lot of young people don’t tell the truth and it’s worrying. They’ve made every single opportunity a moment to extort others or fabricate lies and that’s bad. There’s no blessing in that. They don’t know and that’s why they lie every day. 

Kwaku Oteng 5

Post-election economy; Stormy ride ahead?

-

On December 7, Ghana went to the polls to elect a new leader to govern the country for the next four years. After months of political campaigns which saw all the political parties and the independent candidate go round the country to sell their policies to the electorates, the election finally came to an end with the incumbent, President Nana Akufo Addo, receiving the nod to run the affairs of the country for another four years.

The incumbent President polled 6,730,587 out of a total valid votes of 13,119,460, which represents approximately 51.3 percent to win the election while his closest competitor, Mr. John Dramani Mahama of the NDC received 6,213,182, representing 47.35 percent according to the Electoral Commissioner of Ghana.

With Ghana’s democracy being put to test for another time, the country has proven itself to be one of the success stories of democracy on the continent, as the 2020 elections was generally peaceful, despite some pockets of violence at some polling stations.

The Coalition of Domestic Election Observers (CODEO) in its preliminary analysis of the election indicated that the December 7, 2020, presidential and parliamentary elections were generally conducted according to Ghana's electoral laws and procedures.

“While there were some challenges, these challenges were isolated and did not undermine the process's overall credibility. CODEO commends the Electoral Commission for work done so far, particularly in the COVID-19 pandemic circumstances that the December 7, 2020 elections were organized. Equally, CODEO recognizes the security agencies' role, particularly the Election Security Task Force (ESTF), for their professionalism and diligence in securing the polls,” CODEO in its report noted.

The 2020 election was no exception to the norm that has characterized the country’s past seven elections since it returned to democratic governance in 1992, as it was keenly contested by the two main political parties in the country; the New Patriotic Party (NPP) who are currently in power and the National Democratic Congress (NDC) who are the main and largest opposition party.

For the first time in the history of elections in the country, the election was being contested mainly by two leaders who have both done their first terms as Presidents of the country and were competing for the third and final time.

2

Although the NDC has rejected the results from the Electoral Commission, calling for an independent audit of the results and have proceeded to the Supreme court over the legitimacy of the election, the EC-declared winner, Nana Akufo Addo, has been sworn in by the Chief Justice to begin his second term as the President of the Republic of Ghana, thus, granting him his second term to govern the country.

Add                                                             President Nana Addo Dankwa Akufo-Addo, President of the Republic of Ghana

By this, President Akufo-Addo becomes the third President since the country returned to democratic governance in 1992 to receive the nod from electorates for the second time in a row. He follows in the steps of the late former President John Jerry Rawlings and former President John Agyekum Kuffuor.

With the President now officially at seat, it is time for everyone to come back to the drawing board as the country looks at ways of fixing an economy which has been hardly hit by the COVID-19 pandemic.

In his inaugural speech, President Akufo-Addo pledged to build a stronger economy that would create jobs for the teeming unemployed youth of the country.

He said the last four years had taught him that Ghanaians would no longer accept poverty and deprivation as their portion, but were rather determined to work to chart a path of growth and development for themselves.

He said his second term would therefore focus on establishing a strong economy and undergoing structural transformation to value-added activities, which will generate jobs for the youth and enhance their living standards.

PRE-ELECTION ECONOMY

Ghana’s economy was on a growth trajectory with the fiscal deficit declining from 6.8% of rebased GDP in 2016 to 3.8% in 2018 and 4.8% in 2019, excluding cost of the one-off financial sector bailout.

The country also recorded primary balance surpluses for three years in a row: 0.5% of GDP in 2017, 1.4% in 2018, and 0.9% in 2019 compared to a deficit of 1.1% in 2016. Inflation dropped steadily from 15.4% at the end of 2016 to 7.9% (rebased) at the end of December 2019, the trade balance recorded a progressively large surplus in 2017, 2018, and 2019.

However, the impact of the COVID-19 has erased all these economic successes that were chalked with the country’s economy suffering its first recession in 37 years as it contracted on two consecutive quarters.

The economy contracted by 3.2 per cent in the second quarter of 2020 and contracted again by 1.1 per cent in the third quarter.

With things somehow normalizing now, the country’s economy is expected to record a positive growth in the last quarter as it is projected to grow at 1.5 per cent, which would be one of the lowest growths in the history of the country.

Debt has also ballooned to GH¢273.8 billion, representing 71 percent of GDP as at end September 2020. The budget deficit is also expected to widen to 11.4 percent by end of 2020.

These present a huge challenge for the second-term Nana Akufo Addo’s government which is expected to quickly fix the economy, create jobs for the youth and return the country to the path of growth.

Thus, it is imperative to take a look at the post-election economy and how the manifesto of the winning party (NPP) will serve as the blue print for a quick economic turnaround post COVID-19.

From all indications, the new government is in for a tough ride as it tries to fix a ‘devastated’ economy that is almost completely dependent on borrowing.

The ruling government in its 2020 manifesto stated that “our plan over the next four years is to build on what we have achieved together. Incorporating the lessons learnt from the pandemic, we will consolidate the progress we have made on all our flagship policies, programmes, and initiatives across the various sectors.

Unemployment

Unemployment continues to be one of the major problems faced by the country, with a recent World Bank report indicating that the country was faced with 12% youth unemployment and more than 50% underemployment, both higher than overall unemployment rates in Sub-Saharan African countries. The report highlighted that despite major investments by both government and private sector, this challenge will intensify if job opportunities remain limited.

This presents a major headache for the next Akufo Addo’s government which is expected to tackle this problem heads on.

The World Bank report titled ‘Youth Employment Programs in Ghana: Options for Effective Policy Making and Implementation’ identified some key areas which it believes the government must focus on to increases job opportunities for the youth.

They include agribusiness, entrepreneurship, apprenticeship, construction, tourism and sports.

The World Bank also called for more investments in career guidance and counseling, work-based learning, coaching, and mentoring to equip young people with the skills needed for work.

Commenting on the World Bank report, the former Minister of Employment and Labor Relations, Mr. Ignatius Baffour Awuah said the government had specific options to guide it in the short to medium-term to enhance effective coordination of youth employment programs.

To tackle youth unemployment, the report highlights the importance of having disaggregated data on youth jobseekers by location, gender, skills and capabilities to inform policy and funding decisions and respond with appropriate and tailored employment programs.

“Ghana's youth employment challenge is vast and requires an all-round, deliberate, and consistent response,” said Pierre Frank Laporte, World Bank Country Director for Ghana, Liberia and Sierra Leone.

speaking head“Considering the options outlined in this report, future youth employment policy planning should not only address youth unemployment but should also build the human capital needed to sustain Ghana’s economy,” he stated.

The next government would also be tasked to create the necessary environment that will help unearth the entrepreneurship skills and ideas of the youth since its one major area that can help solve the unemployment problem.

Not everybody will find a job in the public or formal sector, so graduates must be encouraged to develop their own businesses.

Out of the over 200,000 students who graduate from the various universities in the country, the government is able to absorb only two percent of them into the public sector. The government is, therefore, expected to put in place measures that would encourage some of these graduate to take up the entrepreneurship challenge to create jobs for themselves and others.

 Budget deficit

After keeping the budget deficit under control and below the five per cent of GDP threshold, the country was forced to abandon the fiscal rule that was introduced in 2018, as the budget deficit is expected to widen to 11.4 percent at the end of 2020 as a result of the economic impact of the COVID-19 pandemic.

Hon. Ken Ofori-Atta, former Minister for Finance and Economic Planning

Presenting the 2020 mid-year budget, the former Minister for Finance, Mr. Ken Ofori-Atta, indicated that the COVID-19 pandemic had led to a shortfall in revenue, while expenditure on the other hand had increased due to COVID related expenses, thereby widening the budget deficit to 11.4 percent by end of 2020.

He said a shortfall of GH¢5.3 billion in petroleum receipts and lower tax income was expected to widen the revenue gap to GH¢14 billion, while spending on the other hand was expected to increase by GH¢13 billion.

The fiscal cost of the COVID-19 pandemic is enormous,” he said.

The World Bank is, however, projecting a much lower budget deficit of 7.2 percent for the country by year end.

The huge budget deficit presents a big hurdle for the next government who are expected to reduce it to around five percent in the next four years. This will require creative measures from the government that would control expenditures and increase revenue mobilization.

Public debt

Another headache for the new government is the country’s rising public debt which the International Monetary Fund (IMF) has warned that it was reaching unsustainable levels.

Having already come under attack with its debt management strategy in its first term, the government is expected to introduce more innovative ways to sustain and control the country’s debt.

Ghana’s debt currently stands at GH¢273.8 billion, representing about 71 per cent of GDP according to data released by the Bank of Ghana at end September 2020.

Image EHon. Dr. Mark Assibey-Yeboah, former Chairman of the Finance Committee of Parliament

Speaking in an interview with the Vaultz Magazine, the former Chairman of the Finance Committee of Parliament and a former member of the Economic Management Team, Dr. Mark Assibey Yeboah, said the government had done fantastically well with regards to debt management over the last four years.

speaking head

“The government has done fantastically well with regards to debt management. By end of 2016, the debt had reached GH¢122 billion after eight years of NDC’s rule. When Kuffuor left office in 2009, it was GH¢9.5 billion.

“Granted that when President Mills and Mahama came into office, they had decided that they are a very prudent government so they won’t borrow and will just manage the debt that has been bequeath to them. At a rate of 20 percent a year, it means the debt will be growing by GH¢2 billion every year.

“The borrowing attracts interest so at GH¢2 billion per year, if you compound it by 8 years that is GH¢16 billion. Let’s even be generous and add another GH¢16 billion and that should have been GH¢32 billion which then takes our debt to GH¢42 billion; that is if you were being prudent,” he explained.

He said the country, however ended up with a debt of GH¢122 billion by the end of the NDC’s eight years’ rule.

According to Dr. Assibey-Yeboah, the high rate of increment of the country’s debt under the NPP is because, what they inherited was so huge.

At GH¢122 billion, using the 20 percent interest rate, annually, it translates to GH¢25 billion so end of four years, that alone is GH¢100 billion and if you add the GH¢122 billion, that gives you GH¢222 billion.

“The debt has ballooned because what we inherited was so huge. So, even without doing anything, the interest alone was huge. Apart from the interest payments, the financial sector clean up, the government has used about GH¢25 billion for that. In the energy sector, the NDC had signed power purchase agreements all over, take or pay and on annual basis the government is paying about GH¢5 billion for power that is produced that we don’t use. So, if now we are hovering around GH¢273.8 billion, it tells you that debt management has been superior and the government has restrained itself,” he stated.

GDP growth

With the economy suffering its first recession in 37 years, the next Akufo Addo’s government is presented with a huge challenge of reversing the negative growth and returning the country on to the path of positive GDP growth.

In a speech after his re-election, President Akufo Addo assured Ghanaians that his next government would quickly restore economic growth.

He said his immediate task will be to begin the process of reversing the effect COVID-19 has had on the economy and the lives of people.

Image FPresident Nana Akufo-Addo’s Inaugural Address

speaking head“Before the pandemic struck, Ghana in recent years was one of the fastest-growing economies in the world and, I give you my word, we will bring back that reputation,” he stated.

The government in its 2020 manifesto indicated that its number one priority is to stimulate growth, development, and investment in the real sectors of the economy, particularly in agriculture, industrialization, and digitization by ensuring macro-fiscal stability, and engendering the economic transformation of the country.

“Consistent with our vision of building a ‘Ghana Beyond Aid’, we will leverage the growing formalization of the economy to deepen and widen our ability to mobilize domestic revenues by continuing to broaden the tax base, simplifying the filing of taxes, and improving collection regimes,” the manifesto highlighted.

Economic turnaround

The NPP government has often credited itself with turning the economy around when it took over the running of the country in January 2017. The government has often complained about the state of the economy they inherited in 2017, describing it as an ‘economy which was on its knees and heading for a collapse’.

Dr. Assibey-Yeboah, re-echoed this sentiment, stating that the NPP government had done it before by turning around the economy in 2017 and was therefore capable of fixing it one more time.

He said the Ghanaian economy was stagnant by 2014, which led the NDC government to seek a bailout from the International Monetary Fund in April 2015 under an Extended Credit Facility (ECF) program.

He said by the time the NPP came into office in 2017, the ECF programme had derailed, with all targets being missed.

speaking head

“All targets had not been met. So, the first thing we sought to do was to achieve and maintain macro-economic stability because without that you cannot do anything meaningful. To assess any economy, you look at the indicators and if compare all the indicators the NPP inherited in 2017 to the current indicators before COVID-19 struck, then clearly on every single front, we performed better than them.

“If you take inflation, we inherited inflation rate of 15.4 percent, now we are in single digit. The economy in the last year of the NDC in 2016 grew at 3.3 percent, we took over and it first grew at 8.4 percent, then 6.3 percent. The rate of the depreciation of the currency has been lowered, and interest rates have been reduced.

“If you compare the end 2016 number to the end 2019 number, there is not a single macro-economic indicator that had not been improved significantly. We exited the ECF programme with a clean bill of health,” he explained.

He said this was an indication that the government was capable of fixing the economy once again.

Oil dependent growth

There have been lots of critiques who have argued that economic growth in the last three years had been largely dependent on oil, following the coming on board of the two additional oil fields.

Dr. Assibey-Yeboah, however, disagreed with the assertion, arguing that the NDC government were rather the ones who benefitted most from the country’s oil discovery.

“The NPP left office in 2008 under President kuffuor and we had then discovered the first oil field which is Jubilee. It was the NDC that largely benefitted from the discovery of the oil to the extent that in 2011, the economy grew by 14.3 percent because of oil.

“This growth was three years after the discovery of oil. In 2016 when they were growing at 3.3 percent, the oil had not gone away, it was still there. These two new discoveries, TEN and Sankofa only came on board mainstream in 2019 and the production levels now are woefully inadequate.

“The first time that we recorded production from Sankofa and TEN was in 2019; so, how do you explain the 2017 and 2018 GDP growth numbers which were only Jubilee dependent?” he quizzed.

 

Exchange rate  

On the exchange rate argument, Dr. Assibey-Yeboah, said looking at the yearly depreciation rate, the NPP had performed better.

speaking headBecause we are an import dependent economy, we will always need forex to import the essential drugs we need, the poultry products, the rice and all the things that we need. We still import a lot of the essential goods we need; so the currency will always depreciate but what is the rate of depreciation?

“In 2008, one cedi was equal to one dollar, when the NDC were leaving, one dollar was equal to US$4.2 and now we are at US$5.7 which is not that bad,” he said.

REVIVING THE ECONOMY POST COVID

On how the new government intends to revive the economy post COVID-19, Dr. Assibey-Yeboah, said “even before we get to the revitalization stage, we have to applaud the Finance Minister and his team for the stabilization phase.

“With the COVID-19 pandemic striking, nobody knew where to turn and this was the first time we were seeing such a pandemic. How we have been able to stabilize the economy and supported the citizens must be commended.

“We have stabilized the economy and we are ready to take off. We will take off with the COVID-19 Alleviation and Revitalization of Enterprises Support (CARES) programme,” he said.

  

‘CARES’ programme 

The major economic policy program in the new government’s political party’s (NPP) manifesto which it has titled ‘Leadership of Service; Protecting our Progress’, is the GH¢100 billion CARES ‘Obatanpa’ programme.

The former Minister of Finance, Mr. Ken Ofori-Atta, launching the CARES program in November 2020, said it will provide the blue print for the country’s economic recovery, revival and transformation post COVID-19.

He said, the CARES program was ‘Ghana Beyond Aid’ in action and its implementation would restore growth to Pre Covid-19 levels and return the fiscal path to be within the Fiscal Responsibility Act, 2018 (Act 982) threshold of 5% deficit and positive primary balance by 2023.

The principal objectives of the Ghana CARES program include; the Stabilization Phase (July to December 2020) and the government’s priority for this phase was to implement interventions that ensure food security and that protect businesses and jobs.

In view of this, and among several other measures, this phase of Ghana CARES would increase the original GH¢600 million soft loan program, dubbed the Coronavirus Alleviation Program-Business Support Scheme (CAP-BuSS), by an additional GH¢150 million to support MSMEs (GH¢700 million) and also, the Creative Arts, the Media, and the Conference of Independent Universities (GH¢50 million); establish a GH¢2 billion Guarantee Facility to support all large enterprises and for job retention.

This, the government believes, would enable these businesses borrow from banks at affordable rates and over long tenors to adjust to the pandemic and to retain jobs.

The government also intends to set up GH¢100 million Fund for Labor and Faith-Based Organizations for retraining and skills development (Retraining Programme); establish an Unemployment Insurance Scheme to provide temporary income support to workers who are laid off due to the pandemic; ensure food security for the rest of the year; intensify support to the “Planting for Food and Jobs” and “Rearing for Food and Jobs” programmes; and provide financial support for the National Buffer Stock Company and the Ghana Commodity Exchange.

It also seeks to implement a range of employment retention & support services to large enterprises including: clearing contractor arrears; paying new contractors more quickly; increasing government procurement for local businesses.

In terms of infrastructure, the government has promised to construct a 100-bed hospital in 101 districts that currently lack such facilities, a regional hospital in each of the six new regions, a new regional hospital in the Western Region, rehabilitation of the Effia-Nkwanta Hospital, and build two new psychiatric hospitals as well as infectious disease centers for each of the three ecological zones.

It has also promised to build local capacity in the housing and construction industry, strengthen the housing mortgage and construction finance scheme initiated by Government and selected banks, and take measures to facilitate access to land for housing by estate developers.

Revitalization and Transformation Phase

The revitalization and transformation phase of the CARES program is expected to span between 2021 to 2023.

Over this period, the government has promised to invest in activities aimed at accelerating the ‘Ghana Beyond Aid’ agenda.

Specifically, it intends to pursue the establishment of Ghana as a regional hub by leveraging the siting of the Secretariat of the Africa Continental Free Trade Area (AfCFTA) in Ghana, and will include the establishment of the International Financial Services Centre (IFSC).

The government also seeks to review and optimize the implementation of its flagships programmes such as the ‘one district one factory’, the ‘Planting for Food and Jobs’ and the ‘free SHS’ policy.

The party in power (NPP) also promised to complement the Planting for Food and Jobs initiative with a targeted programme to support the activities of the Ghana Tree Crop Development Authority in promoting selected cash crops, support commercial farming and attract educated youth into agriculture.

It also plans to build the country’s light manufacturing sector, including its capabilities to manufacture machine tools to support industrialization; fast-track digitization of government business as well as build a digital economy; strengthen the enablers of growth and transformation by taking strong measures to improve the business environment for the private sector.

In all, the government is estimating the CARES programme to cost GH¢100 billion, with the government expected to raise GH¢30 billion of this amount, while the rest is expected to be raised from the private sector.

Commenting on whether the CARES programme was not too ambitious, Dr. Assibey-Yeboah said I don’t see anything ambitious in spending GH¢100 billion in three years. With the establishment of the Africa Continental Free Trade Agreement (AfCFTA) office in country, Ghana has become a hub and so, we have to make it a financial services hub.”

Continuing with flagship programmes

The ruling government in its manifesto also indicated that, it would improve on the over two million public and private sector formal jobs it has so far created and support the informal sector to formalize and create better-paying jobs.

The government also intends to rebuild the agricultural sector through the Planting for Food and Jobs (PFJ), stimulate industrial growth through one district one factory, fill its physical infrastructure gap with roads and bridges, transform the delivery of government services through digitization, and curb bribery and corruption through greater transparency in a digitized environment.

It also plans to stimulate entrepreneurship and innovation, invest in building human capital through education, and build a safer, stronger and more prosperous Ghana.

“In tandem with this, we intend to create much greater scope for the participation of the private sector in delivery of these public services, proof of effectiveness which we have demonstrated in many of our digitization initiatives,” the manifesto noted. 

Industrialisation

On industrialisation, the government intends to support made-in-Ghana products, including supporting the use of local raw materials, continue to ensure stable and affordable power for industrial development, promote the manufacturing of digital devices locally, continue to work with the private sector to establish more Special Economic Zones for manufacturing and support them with “last-mile” infrastructure services, and finalize the establishment of the bauxite refinery to complete the aluminium value chain.

It also plans to complete the establishment of an iron and steel industry through the Ghana Integrated Iron and Steel Development Corporation (GIISDEC), continue the process of providing gas infrastructure to bauxite refinery sites, deepen and expand one district one factory in diversity and national coverage, process more cocoa and shea-butter locally, and deepen the Automotive Assembly industry.

The government has also revealed its intention to produce at least half of country’s sugar needs locally within the next four years, promote the local production of pharmaceuticals, complete the process of establishing a fertilizer producing plant in Ghana, and for light manufacturing, renew the emphasis on component assembly, not just for automobiles, but for home appliances, including electric fans, refrigerators, and air-conditioners to meet the growing domestic demand.

Agriculture

With agriculture being the backbone of the economy, the government plans to accelerate efforts in modernizing agriculture along the entire value chain, including expanding the Agricultural Mechanization Centers, support for farmers through: increased supply of inputs, enhanced involvement of farm extension officers to work with farmers and breeders, increased disease control, improved warehousing and post-harvest logistics, and tighter linkages with industry mainly through one district one factory.

It also plans to diversify export-oriented, large scale agricultural enterprises in cocoa, palm oil, legumes, cereals, rice and horticulture, poultry and meat for regional markets; large-scale private sector investment in processing, packaging and export of agricultural produce; and promotion of import substitution, with special focus on rice, sugar and poultry by scaling up supply of improved seeds and fertilizers to farmers, promoting consumption of locally produced rice, sugar and poultry, supporting the private sector under the Rearing for Food and Jobs (RFJ) policy with subsidized day-old chicks, feed, and vaccines.

“We will also support soya bean production for the production of poultry feed, enhance small ruminant production with supply of improved breeds of sheep and goats,” the manifesto stated.

It also highlighted the implementation of the Greenhouse Village concept, focusing especially on the youth; activities under the Planting for Export and Rural Development (PERD) with the rapid growth of the Ghana Tree Crop Development Authority (GTCDA); the development of the Pwalugu Multipurpose Dam, and access to finance through subscription to the Ghana Incentive-Based Risk-Sharing Scheme for Agricultural Lending (GIRSAL) programme to finance and de-risk private sector investments in farming and other agricultural value-chain activities.

Physical Infrastructure

On physical infrastructure, the manifesto noted that “the provision of roads, highways, railways, water and sanitation infrastructure will continue to be a major focus of the next Akufo-Addo government. Our decision to set up a separate Railway Development Ministry, the Infrastructure for Poverty Eradication Programme (IPEP) and the Development Authorities, as well as the Ministry of Inner City and Zongo Development, and the Zongo Development Fund, has led to significant progress in adding to our railway infrastructure, in the provision of basic infrastructure at the local level and for special disadvantaged communities like the Zongos and Inner Cities, as well as the construction of new roads under the “Year of Roads” Programme.

Flagship Infrastructure Development Initiatives over the next four years are expected to include; strengthening the capacity of Development Authorities and the Zongo Development Fund, to enable them attract private investors to develop infrastructure in their catchment areas and, give priority to completing all on-going projects under the flagship infrastructure policies of “Year of Roads”, “Water For All”, “Toilets For All” as well as other local infrastructure, including, but not limited to: infrastructure such as drains, culverts, feeder roads, classroom blocks, school furniture, CHPS compounds markets, toilet facilities among others as part of the efforts to bridge the infrastructure gaps at the community level.

Others include the Marine Drive Project; extending electricity to cover the entire population, and completing Yendi, Tamale, and Damongo Water Supply Projects; commence construction of the Sunyani and Keta Water Supply Projects, the Weija Dam Rehabilitation Project, decommissioning and re-engineering of landfill sites including the Kpone (Tema) and Oti (Kumasi) landfill sites, Roads, Railways, Ports and Harbors.

The government also intends to use Public-Private Partnership to accelerate the development of road infrastructure through toll-financing; finalize its public transport policy for a network commensurate with the needs of a fast growing economy; launch the biggest ever road maintenance infrastructure programme, as part of improvements in its existing road infrastructure and as a source of major job creation for the youth.

Energy and Petroleum

On energy and petroleum, the government plans over the next four years to increase efficiency and ensure value-for-money for all activities, including reliable and affordable power generation and distribution, and further development of the oil and gas sector, as well as renewable sources.

speaking head

“We will pursue this goal through the following measures: enforcing competitive procurement of power, the least cost fuel procurement, and minimizing excess capacity charges through the ongoing renegotiation exercise to improve upon the financial health of the sector, reducing losses, particularly in power distribution, by ensuring ECG and NEDCo implement incentive-based loss reduction targets for all District Managers, and significantly improving revenue collection with the implementation of remote sensing technology which is currently being piloted by ECG.

“We will also complete ongoing rural electrification projects to ensure transformation of our rural economies, continue the Auction-Based Licensing strategy for exploratory Oil Blocks to ensure value for money, and enforce Local Content policies for the Upstream and Downstream sub-sectors.”

 

Housing Plan

Ghana is faced with a huge housing deficit, which is now estimated to exceed two million housing units.

In the second term of the incumbent Government, its plans to lay greater emphasis on housing delivery through the following initiatives:

 Renting

To address the short-to-medium term market failures in the renter-segment of the housing market, the next NPP Government intends to establish a National Rental Assistance Scheme (NRAS). In partnership with the private sector, the Scheme will provide low-interest loans to eligible Ghanaians to enable them pay rent advance. These loans will be repaid on a monthly basis to match the tenor of the rent, and will be insured to ensure sustainability.

Government will seed the Scheme with GH¢100 million which will be leveraged to crowd-in additional investment from the private sector. The Scheme will target individuals (both in the formal and informal sectors) with identifiable and regular income. The rent advance loans will be paid directly into the bank accounts of landlords, who would have to register with the Scheme.

As part of our interventions, the government also plans to implement the necessary regulatory, institutional, and operational reforms of the Rent Control Department, including the digitization of their operations, to enhance delivery, and make it better able to serve the changing needs of market players, including landlords and tenants. A new Rent Control Act has been drafted for review by Cabinet in this direction.

With the country’s housing deficit being particularly acute for low income households, the government plans to address this segment of the market by building low-income housing estates over the next four years, using local materials by working with the Building and Roads Research Institute and private developers. Land banks have been secured for this purpose, and the houses will be available for rent, rent-to-own, or outright purchase.

“Under an accelerated ‘National Housing Programme’, the number of housing units, currently being delivered annually nationwide by both the private and public sectors, will be increased threefold. The NPP Government will set-up two anchor institutions: a Ghana Housing Authority (GHA), and a National Housing and Mortgage Finance Company (NHMF), working together but with different roles to drive the housing delivery process.

“The Ghana Housing Authority (GHA) will improve the legal and regulatory framework, create land banks, provide infrastructure, and standardize houses. The NHMF will establish financial arrangements for the demand and supply side housing markets by managing the Mortgage and Housing Fund set up in the 2019 Budget, provide incentives to enable the private sector build communities’/housing units, and create jobs in the process across all MMDAs in the country.”

In all, it is clear from the manifesto of the ruling government (NPP) that they seek to transform the country’s economy, create jobs, boost infrastructural development and create wealth for all Ghanaians.

But like every party manifesto, the implementation is what is important and as to whether the re-elected government would be able to deliver on its mandate and successfully implement all the policies and programmes in its manifesto, only time will tell.

Dr. Assibey-Yeboah was, however, confident that his party-led government would not disappoint Ghanaians.

“We are poised to deliver our second term and if you look at what we have done, it would have been a travesty should Ghanaians not retain us. Ghanaians must have confidence in the government. When you look at the foundation laid, the next term would be beautiful,” he stated.

elect

 

In conclusion, the NPP government has a huge task ahead to manage an economy which has been derailed by the COVID-19 pandemic.

Now that ‘fourmore4Nana’ has been confirmed, it is time for the President to fasten his seat belt and roll up his sleeves for the tough ride ahead.

“FNB Ghana– 5 years of Solid Performance, New Face of Leadership”

The story of a man’s life becomes more defined when there is clarity in purpose, ambition, drive, determination and resilience. Most often than not, standing at the shores of life and looking starkly at the prospects beneath the waves and tide can be frightening, especially when going back to the dullness of life is not an option. But most often, this is what proves a man’s also an assessment of his passion to ensure the fruition of his desires.

Filled with stories of his formative years, Dominic Kwame Adu’s (DKA) personality is one of humility, diligence, discipline and endurance. The onerous decision of fulfilling his dreams led on a path by mapping out and actualizing them. Invariably, the sea of opportunities trapped in the treasures of banking, indeed led him to carve and leave an indelibly entrenched success mark in not just the financial sector, but across the various disciplines of life and business.

Success indeed is for the strong-willed and the throne of leadership is a reward for hard work and dedication to one’s work, dreams and service to people. In other words, leadership by service though it may seem at odds at first sight, has been a prominent feature in the life of Mr. Adu, who earnestly believes in leadership not just by example but by service.

Like fine wine, he remains ageless in his stoic pursuit and fulfillment of his dreams.

The sweet and sourness of wine captures leadership at various levels of industries. Typically, the lows and highs of leaders, like a rollercoaster ride, can jolt some adrenaline of excitement, experience, lessons, chagrin and growth. However, in the furnace of adversity there is always that tendency of leadership qualities to be refined and attain some perfection. The reflection of one’s leadership style as expressed by Mr. Adu is better delivered by those being led which justifies his openness, discipline and motivation to deliver set tasks, with dislike for laxity in work ethics.

Being a leader comes with a trove of experience and as a business front liner, one is exposed to a real life situation where learned experiences become a medal worthy of keeping you ahead and in a leading position to deliver. For Mr. Adu, the new leadership position at First National Bank gives him the opportunity to implement these experiences and lesson learned in his former portfolio. Undoubtedly, being with likeminded colleagues to chart this course in the banking industry with focus on providing unrivalled financial solutions to clients can only yield optimum results.

Leadership and performance are joined at the hip of continuity and excellent delivery of stated objectives. When these plans are projected and strategically implemented, what it births after its gestation period is nothing short of solid! Five years of swift rise to the upper echelons of success is the tale of First National Bank (FNB). Being a subsidiary of First National Bank of South Africa, and with its acquisition of license to operate in Ghana in 2015, there is indeed nothing premature about FNB’s performance especially with its merger with GHL, of which Mr. Adu was a co-founder.

Five years of existence in Ghana, FNB is definitely not ‘a hundred years too early’ as it has stuck to its objective of being a people-centered bank, COVID and all.  Determination gains a whole new definition with the bank through their steady growth rate via incorporating digital banking to offer convenience not just to clients and staff through remote servicing, but it has given a much more time-saving convenience and comfort any individual will crave in this period. It is safe to say that FNB is a banking sensation with their massive success and their enviable laurel of exceeding projected performance.

Being in sync with the changing scenes of a transforming financial landscape and the proliferation of digitization in the operations within the banking hall is no doubt an admirable feat. This, further sandwiched in a trusted and reliable customer experience of the same medium, has led to the overall success of the First National Bank within this short but impact-driven span and it is by every means nothing short of a success story in an otherwise unfavorable pandemic situation.

As the world is practically at a standstill due to the pandemic, the chain reaction hasn’t grounded the terrain that will board you on the journey of this distinguished CEO, Dominic Kwame Adu. However, your baggage of open-mindedness, excitement and expectation strapped to the seat of total enthrallment and intrigues in the unfolding story is a requisite in the final destination of achieving your own ultimate in life. Enjoy the read.

 

 Industry Focus

TVM: The advent of COVID has changed the narrations of various industries, the banking industry not in exception. How has Ghana’s banking industry, in particular, been impacted by this phenomenon?

 DKA: As a financial intermediary of the economy, we are naturally affected by its negative impact on individuals, businesses and government. The financial positions of all economic agents have been adversely impacted. The banking industry has, however, responded by having a sympathetic ear and put in arrangements to ensure we do not contribute to worsening the situation. Inevitably, this has led to lower than planned earnings. Indeed, five out of the eight listed banks have experienced a fall in their share prices, out of which three experienced a fall of 10% or more for the most part of April.  

TVM: How is the banking industry in Ghana responding to this new occurrence?

DKA: Players in the banking industry have widely used the mix of digital banking solutions, supports towards the fight against the pandemic, financial reliefs for existing customers and constant updates on safety protocols to stay relevant in these times. Fortunately, most banks already had a digital strategy. These have merely been accelerated by the Covid-19.

TVM: What are some of the lessons that have been learned through COVID by industry players?

DKA: The need to create a technology infrastructure to support remote operations by our staff and for the remote access services by our clients.

TVM: Retail banks, like most companies, face an urgent imperative to reinventing themselves, with COVID-19, accelerating consumer behavior shifts. Which areas of the retail banking should players reinvent their operations to ensure sustainability and growth of the industry?

DKA: Customers have fully demonstrated that they are comfortable dealing with us using a digital platform outside of the branches. We should, therefore, consider ways of providing a one-stop shop and remote banking services to our clients. Beyond this, our staff and platforms should be equipped to seamlessly serve the needs of our customers, whether in the office or at home– that is banking on the go.

TVM: In the wake of the pandemic, we have seen the central bank introduce some policy measures to support banks. How have these measures helped banks in this period?

DKA: The policies introduced were mainly around changes in the reserves ratio, and loan provisioning rules. These combined, have increased the risk appetite and lending capabilities of banks to especially the key sectors fighting the pandemic and to help our customers keep their lives and businesses in equilibrium. 

TVM: In the recent past, a banking reform resulted in some banks folding up and others merging. How have these reforms helped banks to withstand the COVID-19 shocks?

DKA: The reforms, now considered timely, led to institutions being able to finance larger and more capital-intensive projects and increased Bank’s ability to withstand shocks such as the pandemic. In fact, a new report by the Bank of Ghana (BoG) has indicated that the banking sector’s performance remains strong, but there are emerging signs of the impact of COVID-19 on the industry’s performance as evidenced by the 2020 first-quarter trend owing to the general economic outplay in the Country.

TVM: The emergence of the pandemic has spiralled into action the growing application of technology within the operations of the banking industry. How will investment in the technological sphere drive efficiency, manage risks and offer scalable growth with the banking sector?

DKA: The banking industry has realized the wave of the pandemic and what interventions required to ensure the business stays afloat and continues to offer services. The investment in technology to drive efficiency, manage evolving risks and benefit from growth opportunities has been critical. The innovation and technology to build scalable, digitally enabled capabilities would provide a significant boost in the sector. Thankfully, there are a lot of Fintechs independently developing such systems all around the world. Consequently, a bank must be up to date with what is available on the market and agile enough to be the first to adopt.

TVM: In reference to ‘Bank of the future’, where banks will be using the latest technologies to make the lives of customers and clients easier and more productive. How prepared is Ghana’s banking industry, considering the technology divide we have in the country?

DKA: Studies have shown that when it comes to AI application, security and risk applications are the most popular, with personalization and communication applications coming in second. This is the path we would like to see the industry thread to ensure that as much as possible our customer experience is unmatched. As consumers become more and more familiar with AI in other industries, they are going to expect the same kind of experience from banks. By keeping an open mind and using it to improve existing processes, we will be able to provide the great service we are known through application of the technology consumers expect. Digitization is the way to go, and we will not digress knowing the value it adds to our customers and by extension, our business.

"

FUTURE IS OPTIMISTIC, GAINING THE RIGHT LEVERAGE WITH GOOD BUSINESS DECISIONS WITH THE OPPORTUNITIES OF TODAY.

   "

Company Focus

TVM: It’s been 5years since First National Bank Ghana Ltd. hit the shores of Ghana. Can you kindly walk us through the journey? How will you describe the growth performance of the bank in the last 5years?

DKA: First National Bank Ghana celebrated its 5th anniversary only last month. Our aim was to build a solid world class banking franchise. We achieved that a couple of years ago and since then have experienced steady growth. The journey has been very interesting if one looks at the fact that in those 5 years, the industry went through major changes through reforms. Nonetheless, we believe we have attained market acceptance due to our expanded channels and digital footprint. We have easily exceeded our projected expectations/performance.

GHL 42

My focus is to lead First National Bank Ghana into first Tier banks in Ghana as quickly as possible, as that is where we belong.

TVM: Recently, we heard the 100% acquisition of the GHL Bank (formerly Ghana Home Loans) by the First National Bank Ghana. Currently the two banks are undergoing full integration. What will be the overall scope of operation of the bank after the full integration?

DKA: We are operationally and legally fully integrated already. All customers are accessing our services from all our service points. The scope remains creating a one-stop banking experience for all products in a unified service across various customer segments, while creating a seamless access to our services across the continent of Africa and beyond for clients.

TVM: How has COVID-19 affected the operations of First National Bank Ghana Ltd. in both positive and negative ways?

DKA: It’s changed the working environment for our staff and the way we work to satisfy our clients. We are finding new ways to keep delivering the best, albeit, the pandemic has become the biggest disruptor to all businesses including ours.

The use of digital banking has been truly helpful to our customers even before and much more significantly in the wake of the pandemic. Before the announcement of the lockdown in March when the initial cases of COVID-19 were recorded, we launched an internal campaign to ensure that all our customers sign up for our digital banking platform. We also expedited the development of a USSD code and launched it to enable our customers to access our services without physical contact to our branches or internet connectivity. We realized an immediate spike in Retail transaction volumes on digital and self-service channels from 93.73% in March to 95.20% in April, indicating an increase in digital transactions during the lockdown period...this has been progressive and quite positive from our perspective.  We loved meeting and visiting our customers to better understand their financial needs.  Unfortunately, this could only be done remotely.

TVM: Organizational culture is vital to the sustainability and growth of the organization. Your role as the CEO is to create a working culture that will result in growth and sustainability. How is this panning out since your resumption to the big office?  

DKA: In a considerably short period of time; It has been educational, exciting, and optimistic. As a result of the merger with GHL Bank, we had to rapidly fuse the 2 cultures. Fortunately, the cultural gap between the 2 institutions and values were negligible. This has made the process relatively easy, even under COVID-19 conditions.

TVM: What is your key focus in making the bank one of the leading banking institutions in the country?

DKA: My focus is to lead First National Bank Ghana into first Tier banks in Ghana as quickly as possible, as that is where we belong. A core part of our business remains helping our customers by offering them all the financial solutions in our portfolio and more through alliances. The newly formed and strengthened entity will offer a complete portfolio of financial solutions for retail, corporate and investment banking transactions to the market. Mortgages continue to be a central part of the merged entity as we do not want to surrender our leadership in that product.

TVM: COVID-19 is re-positioning customers to the fore of business operations. Therefore, what are some of the measures being implemented by the First National Bank Ghana to support clients who have been affected by the pandemic?

DKA: In April, we introduced a relief package to help minimise the impact of the coronavirus (COVID-19) pandemic on its individual and corporate customers under the name #RealHelp. This was in line with the Regulator’s call to offer at least a two per cent interest rate cut on loans to all existing customers from April 1, 2020 for the tenure of all Ghana-cedi denominated loan facilities. Customers were also given an option to apply for repayment holidays, where a temporary moratorium would be placed on the loan repayments for up to six months. This was expected to give customers some leeway to re-organise their finances which may be negatively affected by the economic fallout from the COVID-19 pandemic.

TVM: Technology is currently disrupting all sectors of the economy including the financial sector, which the banking industry belongs to. How has your digitization journey been like as an organization?

DKA: When we launched First National Bank, we took the approach of driving digital banking with emphasis on a mobile first strategy. Digital banking for us is not optional, it is the way to bank. We understood that customers own and use mobile devices, so we had to give them access to banking on these devices, thereby placing customer convenience first. This fits in perfectly with the bank’s overall strategy of being first and foremost a transactional bank, offering the most convenient medium for customers to execute their financial transactions, and then providing financial intermediation for those customers who are in need. Using digital rather than traditional banking to do this, offers customers a whole new world of convenience. Importantly, customers have complete control over their accounts and have real time, online information about their accounts at their fingertips, 24 hours a day. This has been a big differentiator for First National Bank. 

TVM: The bank plans to grow organically, with emphasis on digital applications. What are some of the digital solutions implemented by the bank to improve its offerings?

DKA: Our free-to-access digital banking platforms have always been made to make banking easier for our customers. Our self-service approach to banking enables our customers become their own bank managers. Our digital banking tools i.e. Online Banking APP, USSD and Online Banking Enterprise platforms have been designed to enable customers run their own account without visiting the branch including sending Forex abroad. We make available all the digital banking tools to customers as part of our product offering to ensure they can transact at all times at their convenience. For us at First National Bank Ghana, digital banking is the way to bank.

TVM: What does the future hold for FNB Ghana in the wake of continuous changes in the market?

DKA: The future is optimistic, gaining the right leverage with good business decisions with the opportunities of today.

 

Personality Profile

TVM: You are the first Ghanaian to be appointed as the MD/ CEO of First National Bank Ghana Ltd. How does this make you feel?

DKA: All I can say is, I’m happy to be here, to be part of greatness and to lead a high performing team to make things happen.

TVM: When your name is mentioned, what comes to mind quickly is your brainchild, GHLB, but beyond this, many would want to know more. As such, can you tell us about yourself and growing up?

DKA: I grew in the Northern part of Ghana– specifically Tamale but born in a small town called Sampah in the then Brong Ahafo region. My mum and dad were relatively well off, so I escaped poverty and spent most of my years growing up in the household of my sister and her husband, who was in the military. My childhood was a very interesting one. I loved school and travel so shuffled between Tamale, Kumasi, Accra and the Ivory coast where I had a family. Basic education was in Ghana but the rest abroad, specifically UK.  

TVM: What is your fondest childhood memory?  

DKA: Watching paratroopers in Tamale– was always a site to behold!

TVM: Your appointment comes in the wake of one of the most difficult periods for businesses including banks. How are you weathering this tough times?

DKA: Indeed, going through a merger in such a time is not fun but see how well we have pulled this through. I have inherited a phenomenal team of two great brands, and we are soldering on quite impressively. I’m loving it!

TVM: You come in with enormous experience from the mortgage financing market to take up the position as the head of a commercial bank. How do you intend to navigate through the waters of the commercial banking system?

DKA: Ultimately, it’s above service irrespective of the product we are selling. And don’t forget I have inherited a well-trained and professional cadre of managers. All I have to do is to provide them good leadership. The rest follows naturally. 

TVM: “I have inherited two strong combined brands…,” you averred during your takeover. What is the new direction FNB Ghana Ltd. will be charting under your leadership?

DKA: We have a great platform comprising our brand, an excellent team, market leading products and services and finally a strong balance sheet. We cannot be all things to all people but to those we shall be, they will have an amazing experience banking with us.

GHL 30

Indeed, going through a merger in such a time is not fun but see how well we have pulled this through. I have inherited a phenomenal team of two great brands, and we are soldering on quite impressively. I’m loving it!

 

TVM: Your wealth of experience in domestic and international finance, private equity, entrepreneurship and leadership, are key to charting the new course for the bank. What are your strategies for the bank in the medium term? 

DKA: My ambition is to combine all of these experiences and working with my colleagues to introduce a new type of bank in the industry, focused on providing unrivalled financial solutions to our clients.

TVM: You have served in various leadership capacities both locally and globally. How will you describe your leadership style?  

DKA: The best people to describe one’s leadership style are those who are led! I can hazard a guess though. I create an open-door environment where respect is not demanded but earned. I totally dislike the exercise of discretion in resolving issues but believe that my key role is to motivate my colleagues to execute our business aspiration in a disciplined way.

TVM: How would you describe your management philosophy?

DKA: Continuously learning and improving the ways in which we resolve the myriad of issues faced in our business.

TVM: Did you or do you have any mentor(s) that influenced your thinking in life, business, etc.?

DKA: Unfortunately, never had a mentor. Just people I admired because I worked with them or read about them in a book and wanting to emulate them.

TVM: What do you do in your leisure time?

DKA: I have a passion for art, so I visit Galleries a lot. I also love dining out and spending the most part of every weekend in a serene environment up the Akwapim Mountains.

TVM: What kinds of books do you read? Is there any particular book(s) that has significantly shaped or influenced your life?

DKA: I love books about history, biographies, the origin of man as well as the history of religions. Naturally, all of these can only but influence my world view but a fiction by Jeffrey Archer– Kane and Able– aroused my interest in finance and real estate and I have pursued a career in those industries since.

TVM: If you had the opportunity to right a wrong. What would it be?

DKA:

The most wrongs in my life have turned out to be the most rights, with hindsight. So, until I’m on my death-bed I cannot answer this question.

TVM: Throughout your formative years to the man you currently are, who was and is your role model? And why?

DKA: They have varied at every stage of my life. Like most children the earliest role models were my parents– calm and reverent. Then, I moved on to the Parish Priest, Karl Marx, Kwame Nkrumah at the radical in me and rapidly to successful buccaneers like Sir James Goldsmith, Tiny Roland, Lord Hanson etc. I am fascinated by charisma.

TVM: What’s your favorite delicacy and wine?

DKA: I’m terribly indecisive about what to eat. It’s more about the atmosphere and who I’m eating with else anything goes. As to wine I have a penchant for red wines from South Africa.

TVM: What genre of music do you love and listen to the most?

DKA: I’m not very much into music. The closest is the old local music by the likes of Nana Ampadu, Wulomei, Ramblers. More for nostalgic reasons.

TVM: What advice do you have for other players in the industry in this ‘new norm’?

DKA: Beware of Fintechs!!

TVM: What is your advice to the banking public and customers?

DKA: Please continue to trust banks, especially First National Bank. We are here because of you, and that is why we always ask…How can we help you?

TVM: What is your advice to the youth who see you as their mentor?

DKA: Have a clear dream as early as possible in your life, persist and you will attain it.

GHL 27

 

 

After three decades of dominance– Kasapreko remains a juggernaut   

It is estimated that about 75 percent of businesses in Ghana fail within the first three years, while those that survive the first three years do not go beyond 10 years. However, over the years, one company that has been able to brace the challenges and gone beyond the 10 years’ threshold is the Kasapreko Company Limited.

From a garage in a quiet neighborhood at Nungua in Ghana’s capital to a world class automated manufacturing firm located off the Spintex road, Kasapreko has journeyed through the years to become one of the leading beverage producers in Ghana and Africa. The company, which was founded three decades ago with just five workers, has now grown to become the number one alcoholic drink producer in the country, directly employing over 1000 people.

Kasapreko’s vision differed from that of other alcoholic drink manufacturers in the country as it identified the increasing sophistication in the consumer; consistency in product taste, quality and packaging, which meant the consumer was spending more on foreign imports and aspired for quality products. This was the mass niche that Kasapreko set out to serve, ensuring that it produced quality drinks at affordable prices for the ordinary Ghanaian. The company rapidly ascended to the leadership position within the Gin market with its “Kasapreko London Dry Gin”, which became the Gin of choice for consumers.

Today, the company boasts of a wide range of products which includes, Alomo Bitters which is the flagship of the company, Alomo Silver, Alomo Gold, Kalahari Bitters, and Opeimu Bitters. The company is also dominant in the whisky market with its K20 whisky, as well as the Gin market with its Kasapreko Gin, K20 Gin, Barman Ginger Gin and Barman Herbal Gin. The company has also ventured into the liquor, brandy and wine sector with its Carnival Strawberry, Kasapreko Brandy, and Kasapreko Alomo Root Wine respectively. Not too distant past, the company entered the water business with its Awake Water and quiet recently, the company also added nonalcoholic beverages to its wide range of products including the royal drinks, the hi5 Choco malt, the superstar multifruit and the Puma soft drink and now the introduction of energy drink into the market with Storm Energy Drink.

WhatsApp Image 2020 07 03 at 2.10.40 PM

As Kasapreko Company Limited marks its 30 years of existence,The Vaultz Magazine caught up with the Founder and Chairman of the Kasapreko Group, Dr. Kwabena Adjei and the Managing Director of the Kasapreko Company Limited, Mr. Richard Adjei to look at how the journey has been so far and the way forward.

The journey so far

WhatsApp Image 2020 07 03 at 2.10.40 PM 4Kasapreko Company Limited

In its 30 and counting years of existence, the Kasapreko company has had its own successes and some few challenges. The Managing Director of the company, Mr. Richard Adjei submits in his narration that

“over the past 30years, we’ve been able to bring out a very big brand in Ghana that we are very proud of. Kasapreko that started in a house about 30 years ago is now at least one of the biggest beverage companies in Ghana; if you talk about at least top three, top four beverage companies, Kasapreko is certainly one of them.”

In terms of the local front category, the company is one of the strongest producers of beverages, one which all Ghanaians are proud of. After 30 years of introducing the Kasapreko Gin, it’s still the market leader in the gin market, with Alomo Bitters still the number one bitters in the country after it was first produced 21 years ago. The company now has Awake water which is part of the top four water brands in the country, and the Storm energy, which has so far taken the energy drink by storm to occupy the number two position.

Kasapreko has done quite amazing in terms of its products that it’s put on the Ghanaian market, and also boasts of being the biggest exporter for alcoholic beverages in Ghana. The Kasapreko brand is currently present in Nigeria, Togo, Ivory Coast, Burkina Faso, South Africa, US and some countries in Europe.

“So, I’ll say that the founder, with his philosophy and vision, has really pushed the company to where it is today and going by the slogan of ‘a step beyond excellence’, I believe it has pushed the company to a very high standard,” - Mr. Richard Adjei

As the only local beverage company with an ISO certificate, this has helped open lots of opportunities for the company as it currently sells some of its products in some of the major airlines, hotels, and some of the high-end restaurants around the world.

History of the company

WhatsApp Image 2020 07 10 at 1.39.25 PMDr. Kwabena Adjei, Group Chairman, Kasapreko Group of Companies

Over 30 years back, Dr. Kwabena Adjei never envisioned that Kasapreko would grow to become such a super brand. At a time when everybody was going into the production of alcoholic beverages, Dr. Adjei also decided to try his luck, although it wasn’t his intention to grow it into such an empire. He saw the production of alcoholic beverage more as a hobby than a business until he returned home one day to find out 25 cartons of his beverage had been sold.

“That day has been a very memorable day in my life and that’s how it started. But, it’s been through creativity that we’ve been able to move it from 25 cartons to now millions of cartons a day,” he disclosed.

He further averred,

“business people are like vultures. We always look at where the money is. So, if everybody is doing alcoholic beverage in Ghana at the time, we all tried our luck. It wasn’t my intention to grow the empire as it is. It started small. I was doing everything in bits and pieces until I saw there was potential in the industry. I then abandoned all other things and focused on what I thought had the prospects. That was how I entered into the manufacturing space.”

With a strong urge to provide customers with quality products through innovation, Dr. Adjei engaged a few friends to find out how Kasapreko could stand out from other beverage producers around that time. He narrated that

“when I entered the industry at the time, about 90 percent of us were putting our products in ‘Key Soap Boxes’ and then we were also all using one flavour called ‘Ducworth’. I began to question the processes of the industry regarding why we were all using one flavour and packaging in ‘Key Soap Boxes’ which apparently wasn’t hygienic for consumption.“So, I tried to turn the situation around. I engaged some few friends, made my own boxes, went to Germany, made my own customized bottles then the thing started growing. After a while I made some few researches and travelled to London to acquire some few things to be added to my flavour (Ducworth) to give it a new sensation and made it a bit distinctive. That was how people started buying Kasapreko’s gin,” Dr. Adjei revealed.

 

Standardizing the products through Research

Having experienced the rural life and realized how his forefathers chop roots of trees into bottles and added the local spirit ‘akpeteshie’ and consumed it over and over again, Dr. Adjei got a cue from it which set him out into the production of bitters. To be able to produce the drinks without harming the consumers, the founder approached the Centre for Scientific Research into Plant Medicine to explain his idea to them. Initially, he said the idea was declined, but he persisted until he succeeded.

“This is how we started the research process. I funded them to provide me with the right formulation to make the Alomo Bitters. From sources, I still remain the only beverage industry to have conducted such a feat in the whole of the country till date,” he proudly noted.

Continuous investments and innovations

While many Ghanaian businesses tend to relax at the sight of success, Dr. Kwabena Adjei did not let his successes get into his head as he continued to innovate and invest in technology. It is that zeal to continuously innovate which led the company to commission a US$2.6 million state of art machine which is capable of blending all sections of drinks at the press of a button.

Dr. Adjei considers innovation and continuous investment in technology as being the bedrock of the brand, something he said keeps them ahead of competitors.

“The future of this company considers the hygienic nature of its products very paramount. To avoid any human interaction with the processes, the company commissioned about US$2.6million machine which blends all sections of the drinks at the press of the button.

Initial challenges faced by the company

It has not been all rosy through as the 30 years of the company has experienced some challenges. Dr. Adjei highlighted some of the challenges the company had gone through in its 30 years’ journey.

“There have been a lot of ups and downs in the business since we started. We encountered two pertinent challenges along the way which were: accessing funds and market penetration. I didn’t start with any huge capital. In trying to access a loan, I went to about three banks and they all turned me down.“Then I attended a course organized by EMPRETEC, a United Nations programme established by the United Nations Conference on Trade and Development to promote the creation of sustainable, innovative, and internationally competitive small- and medium-sized enterprises. There I met Hon. Alan Kyerematen, who was also a resource person at the event. After the course I explained my situation, and then he advised me that as a small business entity, I shouldn’t go to the foreign banks to secure a loan because they won’t grant it to me. He then advised I go to a local bank and that I did. That’s how I accessed the loan. I used my house as collateral. So accessing funds is a one core challenge I encountered which was then followed by market penetration. I remember going out with some samples to some retailers and my products were rejected. That led me to strategize on how to penetrate the market. And today here we are,” he recounted.

 

What Kasapreko did differently

When asked about what Kasapreko did differently to succeed, he said

“Kasapreko Company Ltd. is currently exporting a lot of its products not only to West African countries but to South Africa, the United States, Europe, and other places in Southern America. In the West African zone we export to Nigeria, Togo, Burkina Faso, Ivory Coast and these are our strongest markets. What have we done differently? The question begs asking. It is all about quality. One thing we don’t compromise is the quality of our product. We ensure it’s always better than what is on the market and meets the global standard. In order to compete with products in developed countries such as the UK or U.S, the quality will need to match-up to the quality of the manufacturers in such countries and as such we make sure our quality is always top notched. One of our policies has always been “a step beyond excellence” and that’s what we’ve been doing since inception … So quality has been very key to our success on the global stage,”

On how other Ghanaian entrepreneurs could also get their products move beyond the shores of the country, he said they must first visit the countries they intend to do business, study their laws and policies. Afterwards, he said they need to register the product in that country and skew their marketing strategy to suit the country’s terrain.

“The quality of the product also plays a key role in the quest to penetrate that country. The quality should be made to meet the global standard. If all these requirements are met, then the products are ready for the export market. Industrialists should also recognize that countries have their unique needs; so they should be willing to tailor their products to suit the needs of that country,” he cautioned.

 Touching on whether there were some specific products and services that thrived outside the shores of this country, he said every single product that is manufactured in this country is worth exporting so far as the quality is of the global standard. He said an industrialist could even consider smaller countries where industrialization is at the barest minimum and almost everything seems to be imported for use. With such countries, he said a Ghanaian industrialist could decide to tailor his manufacturing strategy in Ghana to meet that kind of market.

Accomplishments

Being the first Ghanaian business tycoon to have been inducted into the Ernst & Young Entrepreneurs Hall, Dr. Adjei said he was very humbled to receive such an award and be inducted into the Ernst & Young Entrepreneurs Hall of Fame.

“I was elated when I got to Monaco and I saw my name on the screens on the streets and my name being mentioned alongside a Ghanaian music being played to the hearing of the whole world. Such an achievement is very humbling. It propels one to do more especially coming from such a humble beginning. Though I like awards, the best award I can give to myself and recommend for every Ghanaian is the award of ‘Success’,” he stated.

He said he was very proud of himself because he didn’t inherit any money from anyone.

Currently, Dr. Adjei has handed over the companies’ operations to his children including Mr. Richard Adjei to manage the affairs of his various companies. He said

“… I’ve trained and equipped my children to be able to take over and they are currently in charge of the various firms. This I believe will soon be a national celebration for business owners in the country as they shall see successful transition from first generation to second generation as practiced in developed countries.”

No excuses in business

Dr. Adjei advised young entrepreneurs that there were no excuses in business, stating that

“business is like driving a car. When driving, you constantly look forward but you look at the rear mirrors to guide you. So with your passion going forward, at times you have to pause and look around and assess if what you’re doing is right before you continue going. I have a philosophy that when I set my mind on doing something I do it but that does not mean that if I’m falling into a ditch, I have to go on. Wisdom demands I take calculated risk and not all risks and that’s what I do. I dreamt and then gave my dream legs.”

He also indicated that every businessman need to have ideals which would constantly guide him/her along the way.

“Mine includes perseverance, focus and flair for success.”

He believes these were the top three skills and values needed by any entrepreneur to be successful.

“But to be a successful entrepreneur one needs to be financially literate as well. Every successful entrepreneur should know how to grow money, trim fat costs in their business, and know how to plug holes where there are leakages. They should also understand their business models other than that, they’ll be making money and it’ll be going away,” he advised.

Ghana’s Industrial sector

Sharing his thoughts on Ghana’s industrial sector, he said the industrial sector globally had been on the rise with millions of jobs being created in fast growing economies like China, Malaysia, Philippines, Mexico and other emerging economies.

“But over the past few years, Ghana’s Gross Domestic Product (GDP) has grown steadily but the industrial sector has played and continues to play a minimal role. To add to that the manufacturing segment has been experiencing a continuous decline and as such contributes negatively to the economy. The services sector has been the backbone of the economy and that’s quite pitiful because in every economy it’s the manufacturing sector that stimulates the needed growth. We just hope there’ll be new policies that the government will put in place to enhance the activities of the sector.”

He said the one major cause of this situation was sometimes the difficulty in running a factory, which was a major component of any manufacturing company. He said another cause was the inability to put up such huge investments.

“It’s difficult to get the necessary support from the government and that gives the service industry the edge because it’s easy to operate i.e. buy and sell. “The banks on the other hand also contribute to the situation. Rather than support the industries, they choose to support the services sector or trade because they feel it’s less risky. All these, I suppose, are causing the declining state of the industrial sector, most especially the manufacturing. Moreover, some policies, especially increment in taxes on raw materials for operations and excessive taxes on sales, do not also favour a lot of the manufacturing companies and as such affect their operations,” - Dr. Adjei

Need for Ghana to industrialize

Dr. Adjei emphasized that no country in the world had developed without industrialization. He emphasized

“whether it is the USA, China, European countries or Latin America countries, none of them have seen sustained progress only on the back of imports, services or agriculture. Industry is crucial in creating jobs, goods and services. “This country is blessed with numerous resources. We should be able to turn these resources into finished goods by manufacturing our own products. By doing this we limit the amount of imports that come into the country. A lot of benefits are accrued such as checking the foreign currency imbalance, creating more jobs and above all more skills are generated over time,” he said.

Starting the journey to industrialization, the successful business mogul stated that the two biggest impediments to rapid economic growth in Ghana were lack of funds and adequate skills. Therefore, to successfully launch into an industrialized nation, he said the government needs to set aside huge funds to be made available to companies that were willing to manufacture some of the basic products imported.

“If funding is made available at a cheaper rate as compared to that of commercial banks, it will certainly encourage investors to take the risk in manufacturing.“The government can also grant some tax breaks or reduce taxes for the manufacturing companies or put high taxes on imported products that can be produced in the country to deter importers. If the government makes such policies towards importation into the country a bit stricter it will certainly help industrialize the nation. Also more businessmen should be encouraged to take more risks instead of just going into trades or the service industry,” he advised.

He said there were already some good policies in place, but enforcing them was the problem.

“Government should find a way of tracking imitators and deal with them adequately as they tend to destroy the quality of good products and harm genuine investors by churning out inferior products at lesser prices. The Food and Drugs Authority (FDA) should be able to do more in such areas to enforce such policies and it should be able to help the manufacturing companies wither out the bad ones. Putting in place policies, government shouldn’t only focus on the manufacturing sector but needs to even go deeper into the education sector because if manufacturing companies are not getting the right human resources, investors may not even be encouraged to invest,” he noted.

Origin of the brand name ‘Kasapreko’

WhatsApp Image 2020 07 10 at 2.04.55 PMMD of Kasapreko displays various products of the company

Commenting on what informed the decision to settle on

‘Kasapreko’ as the name of the company, The Managing Director, Mr. Richard Adjei revealed that Kasapreko basically means ‘speak at once’. He said the company was named after “the chief of Wassa Amenfi at the time. He was called Nana Kasapreko. That’s where my father is from and he named the company after him. Basically, the meaning is a person who ‘speaks at once’ or speaks with authority’ and he wanted Kasapreko to just be like one touch; once you come up with a product and the quality is good, taste is good and price is good; so more or less straight to the point. So, that’s why the name Kasapreko,” he disclosed.

Significant Achievements– from a spirit company to a total beverage company

WhatsApp Image 2020 07 10 at 2.24.32 PMKasapreko Company Ltd. Production line 

Unarguably, Kasapreko Company Ltd. can pride itself on so many successes it has chalked over the last 30 years. The Managing Director in his narration submitted that

“for a Ghanaian company to operate in the past 30years, it shows that we have quite a large base of loyal consumers. So, I’ll say that we are a loved brand; one of the brands in Ghana that consumers do remember and do purchase our products. We are very proud to have lasted for 30 years and having the loyalty of our consumers.Some of the successes that we’ve been able to chalk, earlier as I said, we are the number one exporter of alcoholic beverages in Ghana; we have been able to commercialize the bitters industry– we are the first to launch bitters on a commercial basis; there are a couple of awards that we’ve also won,” he made known.

The company was also adjudged the largest tax payer for an indigenous company in Ghana for the past two years, with their flagship brand ‘Alomo bitters’ winning several awards.

 

“We have also been able to build a new factory under the 1D1F in Kumasi. So, these are some of successes I can say that we’ve chalked. Over the past years, we’ve been able to transition from a spirit company to a total beverage company; now we are doing soft drinks and water. We are also the registered franchise owners for distilled brands which includes Savannah, Hunters, Amarula and Nederburg in Ghana and even Savannah and Hunters, we are the franchise owners for their West African market other than Nigeria. So, we are proud of some of these achievements,”  - Mr. Adjei 

 

The new product front– Wine and beer

Considering the company’s insatiable quest for innovation and satisfying its diverse consumers, the company has risen to the occasion by venturing into the beer market to meet the growing need of consumers by producing its own beer called the “freedom beer”.

To add to its wide range of products, the company is now

“the franchise owners of distilled brands which includes Nederburg sweet wine and Amarula in Ghana and currently producing Savannah Cider and Hunter’s Cider in-house,” Mr. Adjei averred.

Channels of distribution and market positioning

Every company’s chain of businesses or intermediaries through which its product or service passes until it reaches the final buyer or end consumer is very significant to the company’s success. As such, at Kasapreko, products are “distributed through distributors to wholesalers to retailers and (or) consumers,” reveals the M.D. The company also distributes to some of the supermarkets such as Shoprite, Game, Palace, Melcom, Max Mart. Another channel is also the hotels and the petrol forecourts; fuel stations including Goil, Shell and Total.

The company also considers solidifying its position on the market as such Mr. Adjei asserted that quality was very key.

“Making sure your products are affordable is also key and also making sure you’re innovative. As a company, every year or very six months, we try to come up with products that the consumers will like and enjoy. So, innovation is key in making sure you are coming up with innovative products; that’s the way to stay on top and making the market more exciting,” he added.

Impact of Covid on business

It has become a constant sing-along now where most folks punctuate their sentences with the catchphrase of COVID-19 in all its negative connotations as they allude its impact to their plans, businesses and visions. While others are defiantly resisting its toll on their businesses, others have succumbed to the virus’ whims. The current state of fragility of economic development and progress has the pandemic’s paw print on most entrepreneurial ventures.

The corona virus pandemic has affected the global economy and businesses across the world and Kasapreko Company Ltd is no exception. The managing director revealed that the pandemic has resulted in a slow-down in sales.

“Sales were low because there was no one out there, especially no hawking and now that there’s no funeral, the bars are closed, schools have closed; consumption of drinks have generally gone down,” he lamented. This, he said has led to the reduction in the volumes of drinks produced by the company.

He also disclosed that the company’s exports have also been affected due to the closing of borders.

So, I think COVID-19 has affected us in a way and some of us, we have some obligation to make. We have bought some machines that we still have some amount to pay on a monthly basis and even though we are not producing, we still have to pay and that has brought a strain on our cash flow.”

He said the company was, however, confident that things will get better when the borders finally open and business return to usual.

In the midst of the pandemic, the company however, also identified an opportunity. With hand sanitizers being in demand all over the world, the company ventured into the production of sanitizers at a period when the product was very difficult to lay hands on in the Ghanaian market.

“We launched our sanitizers and it’s doing quite well on the market. That’s one good thing that has happened,” in the midst of the pandemic according to Mr. Adjei.

Effects of COVID-19 on the manufacturing sector

Undoubtedly, the pandemic has affected every sector of the economy as a whole including the manufacturing sector.  Mr. Adjei analyzing the impact on the sector said

“as a whole, it has affected the manufacturing industry on a large scale. For some of us, with the borders closed, there are some equipment that needs to come in which haven’t been able to.“The global supply in general have been affected largely. So, now when you buy goods some people are not getting shipment, and those that are getting shipment; formerly two weeks are now taking eight weeks, prices of supplies have gone up, especially for us, on alcohol and other stuffs that we import into the country have gone up drastically. So, the global supplies in general have been affected and certainly it will affect manufacturers over here,” he explained.

The ‘new normal’– Innovating in the amidst of COVID-19

Kasapreko, among few global firms, innovated their operations in the midst COVID-19. Considering the outbreak of the pandemic, many manufacturing firms took hold of the opportunities available to produce various products required for the fight against the coronavirus.

Kasapreko, notwithstanding, joined the race by repositioning its operations to meet the ‘new normal’ the pandemic presents by producing hand sanitizers. Also, considering this same new normal, the company now undertakes “more online marketing and doing more telemarketing and will also soon introduce a healthier fruit juice unto the market. We have seen that over the past few months, our ‘Juice one’, which contain some vitamins has gone up in sales a lot. So, we intend to come up with more products that boost the immune system within the market space. That’s our general plans in terms of the near future,” The MD hinted.

“So, for us, one; we want to drive more products that boosts the immune system; two, we want to continue to sell our sanitizers to help in terms of hygiene– normal hygiene needs within the country and also to drive more online sales. So, if you have to stay in the house, if you are no more going out, you buy more things on the internet through the phone or phone app; that’s the direction as a company,” he added.

Mr. Adjei also noted that the company was currently in talks with its bankers and suppliers to give them more leeway in the wake of the pandemic.

Flaws exposed by the pandemic in the manufacturing sector

The Kasapreko Managing Director pointed out that the pandemic has exposed how dependent Ghanaian companies are on imported materials for production. “… as manufacturers we need to look more inland on how we get our raw materials; there have to be more companies that are in Ghana that produces some of these raw materials.

“For us, as an example, there’s nowhere to get resin in Ghana for our bottles. So in manufacturing, we need to domestically produce the needed raw materials. Especially, in my sector, we are looking at bottles, we are looking at alcohol itself, we are looking at resin– which we use for plastic bottles. These are some main areas and we need to look at sugar– more sugars are imported into Ghana even though we have the Komenda sugar factory; it’s not able to produce the volume that the company needs. So, these are some things that have affected us for the past two months,” he expatiated.

 

Leveraging technology

Technology disruption has become the new norm in the global business landscape. Companies are constantly inclining their operations with the latest technological advancement in their industry. Kasapreko, moreover acknowledging the import of technology is also leveraging technology to boost its business operations. Expounding the company’s technology leverage, the MD stated “for us, …, we are using SAP which is an enterprise resource which is managing our end to end plants– from manufacturing to production and to delivery.

“So, we are using SAP.  We also have a lot of automated machinery; if you come to our plants, you’ll not see people filling the bottles with their hands, and it’s all automated. For our blending, we have a totally automated blending facility and then bottling facility. So, everything is automated and running at a very high speed.

“In terms of sales, we are now trying to merge the distributors and retailers to our online system; that’s if you have a bar, or shop and you need one of our products, you just go on our app and you select the product that you need and it’ll reflect in our system, we check it and deliver to you within the next 48 hours. So these are some areas we are trying to use technology,” he revealed.

Key challenges bedeviling the company’s operations

Doing business in Ghana comes with its own challenges and these are some of the concerns confronting business players. Kasapreko, like any other company, experiences various forms of challenges. Highlighting some of the challenges the company experiences, the managing director noted that its major challenge was the instability of the Ghanaian currency. This he said “for a lot of our importation, we are paying in foreign currencies; let’s say US dollars. But with our currency, every year it’s depreciating and our production keeps going high, whiles a lot of our clients are not able to bear the total cost. So, currency fluctuation is the main issue that we have as a company, because we are not able to get a lot of our raw materials in Ghana.

“You import something today, the dollar is five cedis so your cost is five cedis, but you import the same thing within a few months i.e. three or four months your cost is now five cedis fifty pesewas. And every time your margins are being reduced and these are some of the issues,” he lamented.

Another challenge he bemoaned was the cost of funding.

“Over the last few years, the government has done well to reduce the cost of funding and we hope that it will be reduced more in order to keep businesses going for us here in Ghana. There are a lot of other countries outside Ghana that the cost of funding is 3% to 4% but here we are still looking at a double digit 15%, 16% and even some above 20%,” he cried out.

What the future holds

After 30 years of being in business, Mr. Adjei, said the main aim of the company was to become the biggest beverage company in Ghana.

We want to be ahead of other locals, that’s our main goal. Future, for us we are looking to enter the beer market. As I said, we’ve just launched our beer, which is called freedom beer so we are looking to compete in the beer space in the next five years.“There are basically only two beer brands in Ghana, so we hope that in the next five years we will become the biggest share player within the beer space. We also look forward to become the number one produced water and soft drinks in the next five years taking on the bigger performing companies and bigger water companies as well. We are already the number one in spirit drinks and we plan to maintain the leadership position as well as bring up new products within the market,” he assured.

Appreciation to staff and consumers

WhatsApp Image 2020 07 10 at 2.31.46 PM

The Managing Director expressed his appreciation to the staff of the company and consumers of the various products for the continuous support accorded them. He said “I will just say thank you to our consumers mainly. They are the backbone of the company; without them, we wouldn’t be here. So, we thank them for trusting in us, consuming our products. Then, they should certainly be expecting much from us.

“To our employees as well, we would also like to say thank you. They’ve also been very helpful to grow the company to date, especially the employees that have been with us for over 25years, they’ve been very loyal from the beginning.“To readers, keep reading about Kasapreko and looking forward to some of our new brands. I hope that every Ghanaian is able to buy a product from Kasapreko in the future,” Mr. Richard Adjei concluded.

 

Personality Profile Interview  Mr Mahesh Mahtani Country Director- Stallion Group Ghana

Personality Profile Interview Mr Mahesh Mahtani Country Director- Stallion Group Ghana

Born in Ghana as a 3rd generation descendant of the first Indian family to arrive in the Gold Coast (Ghana) in 1939, Mr. Mahesh Mahtani is not only proud to call himself a Ghanaian but also prides himself in having his basic education and fondest childhood in a place he calls home, Ghana. 

His life as a professional in his field of work spans many years of hard work, discipline, and integrity which reflect his daily activities both at the workplace and in his personal life. In 2011, he was appointed the Country Director for the Stallion Group Ghana which has significantly grown in the last eight years since he took the reigns of word-class automobile brands such as: Honda, Audi, Skoda, Hyundai vehicles and more recently, the famous Changan brand from China. With a personal vision to lead Stallion Group Ghana to become Ghana’s leading player in the automobile industry, he strives to do more than facilitate the sales of more cars and acquire more brands. He is also pursuing an agenda to employ more people and better the lives of those the company employs.

Under his leadership, the company has embarked on numerous goodwill activities that have contributed immensely to society; having fetched the company and himself both local and international recognition, including the Excellence in Corporate Social Responsibility award among others.  Despite attaining this astonishing milestone in his professional career, he maintains the view that being nominated for an award category is more important than actually winning the award. To him, nomination tells that the company is on track to achieving its set goals. 

Mr. Mahesh Mahtani believes he is a born-leader having taken up a number of leadership roles. As the years go by, he hopes that the teachings, energy, and many years of dedication he has rendered to Stallion Group Ghana will long remain after his reign as Country Director.

Industry Focus

TVM: Having been a key player in the automobile industry in Ghana, what’s your general overview of the automobile industry in Ghana?

MAHESH: The automobile industry in Ghana can be seen to be on an upward trend simply because Ghana is moving from a low income economy to a middle income economy and thus, making the capital and major cities and their suburbs to be expanding as such demanding means of transport to be on the increase to ease mobility. This, therefore, calls for a small car of one’s own. Considering the choking condition of these major cities, workers now have to drive a distance of 10 -15 miles from where they reside, and as such a car to go to work is important and fortunately these days’ cars are affordable depending on one’s choice.

TVM: Ghana is likely to experience growth in the automotive industry considering the intentions of some automakers’ decision to establish assembly plants in the country. What is your take on this?

MAHESH: This is welcoming news because it will give employment to hundreds of people and I think the big auto dealers in Ghana are already in dialogue with the government on creating assembling plants in Ghana. In the near future, all the major players will be assembling vehicles.

TVM:  Will this change the game in the automobile industry and how?

MAHESH: It will because everyone who is a major player in the automobile industry will have to move into assembling. Though much will depend on government’s policies to encourage people to make these huge investments in the country. Considering Ghana’s relations with neighboring countries, Ghana could be a strategic hub for automobiles to the neighboring countries.

TVM: From your experience in the automobile industry in Ghana, what do you think ails the sector and what do you suggest be done to address these challenges? 

MAHESH: We always have challenges in the automobile industry and the two foremost ones are: grey market imports and importation of second hand vehicles. Grey market imports simply mean people importing brand new cars from certain countries, bringing them to Ghana and selling them. Unfortunately, these people cannot offer manufacturer warranties; they cannot offer any type of warranties and they do not have facilities to service or repair the cars but they sell these cars. On the issue of importation of second hand vehicles in Ghana, It is evident that the sales of second hand vehicles in Ghana exceeds the amount of brand-new cars being sold in in the showrooms.

TVM: Due to low disposable income in the country and very high costs associated with new automobiles, used vehicles dominate Ghana’s automotive market. How does this impact the operations of retailers of new vehicles?

MAHESH: It impacts on us a great deal because people purchase second hand cars more as compared to new vehicles and as such affects our sales. Also, there are so many roadside auto mechanics in the country who are very good. Thus, people who buy these second cars visit such mechanics including those who purchase new cars from the showrooms for maintenance and repairs and as such affects the legitimate auto dealers as they lose businesses to these roadside mechanics. These cannot be stopped, we agree, but these days there are policies that if a car is over 5 years or ten years old it should not be allowed into a country because of carbon emissions from those vehicles. These laws should be enforced to reduce the greenhouse effect, as many countries are now clamping down on such old cars.

TVM: What contributes to the high cost of purchasing a new vehicle?

MAHESH: New vehicles are expensive generally compared to a second hand vehicle. The reasons are when you buy a new vehicle from a proper authorized dealer it comes with a warranty usually 3 to 5 years or 100,000 kilometers whichever comes first. Secondly, the principals we deal with also increases their prices. Thirdly, the issue of inflation affects everything in a country. Some countries can be as low as 3%, while some countries can be as high as 15% or even more and this also has an impact on the cost of brand new vehicles. 

TVM: How do retailers of the new vehicles intend to outwit the competition with used vehicles?

MAHESH: Well, the truth is marketing in Ghana is a cut-throat activity in the automobile activity. Thus, companies design various marketing strategies like free services and free insurance etc.  For instance, in our company, we undertake such promotions and embark on strategic marketing. Also, being located on the Graphic Road, which is the main auto center in Accra, we benchmark what our competitors are offering and we try to match them or even go a step further. New cars are much less to maintain than second hand vehicles hence we try to convince customers of these costs. 

TVM: According to research, vehicle per population ratio in Ghana is continually on the rise, moving from 50 vehicles per 1000 population in 2010 to 73 vehicles per 1000 population in 2017. How do auto retailers intend to capitalize on this vast opportunity available to them?

MAHESH: By trying to sell more vehicles. We’re all trying to sell more vehicles all the time. Currently, we have 5 brands namely Honda, Audi, Skoda, Hyundai and Changan. We’ve got vehicles in all segments; Luxury segment, over 2 litres segment, under 2 litres segment, 1 litre segment. We just try to find opportunities to sell our vehicles to the masses, to provide state of the art servicing in our workshops, and to sell original spare parts as well as other value additions that keep us ahead of the market.

Business Focus

TVM: How has the competition propelled the team to stand out?

MAHESH: We’ve always tried to survive and outwit the competition but it’s not been easy. In fact, in our early years, we found it very difficult to penetrate in the Ghanaian market. We started off with the Honda brand and then we acquired other global auto brands and luckily, by the grace of God, we finally penetrated the market and we’re here 19 years later.

TVM: Stallion Group Ghana is one of the leading auto retailers in the country with a very impressive track record evident in the number of laurels it has won over the period. What are the key factors for the Group’s success in Ghana?

MAHESH: First of all, we sell cars that the market requires. We also have state-of-the-art workshops across the country, and good after sales support; we always have original spare parts in stock. These things are very important in the auto industry because after the sales, customers would have to bring back their cars for servicing and if any part(s) needs to be changed, they need to be changed with original spare parts.

TVM: You mentioned that in 2001 when you penetrated the market you faced some challenges. What were the particular ones you faced?

MAHESH: When new players enter any industry there are always challenges and very stiff competition, particularly when the older players are in the business 50 years before you. Thus, to promote our brands in Ghana, a lot of time, effort, advertising, marketing went into it. We learned to survive, and we did and then we acquired more brands and today we have three showrooms on Graphic Road, Honda Place, Hyundai World, & Stallion Motors, with 2 other showrooms (Spintex Road and Adim, Kumasi) and we compete effectively with the other auto players. 

TVM: What are the long terms goals for Stallion Group in Ghana?

MAHESH: Well, our long-term goals are to be the leading automobile distributor as well as to assemble our brands in Ghana. 

Personality Profile 

TVM: When the name Mahtani is mentioned, one remembers quickly about the first Indian family to arrive in the Gold Coast. But people may want to know who Mr. Mahesh Mahtani is?

MAHESH: Indeed, my grandfather came to Ghana, then Gold Coast, in 1928. Perchance, he was passing through the Gold Coast, on a ship and he got off the ship to explore the land. He liked the environment, the people, the weather - it was English speaking like Indus - and so he decided to start his life in the then Gold Coast. He in fact opened a very small retail store in 1929 in Accra and I am the grandson of that gentleman. So, our roots have been here since 1928. My grand-father was the first Indian to bring his entire family to Ghana, and this has even been documented in the newspapers, magazines etc. you may verify the same from the Daily Graphic - 26th January 2918 edition. You can not change history. 

TVM: Did you have your basic education in Ghana as well?

MAHESH: Yes, I did. I went to Ghana International School from the years 1962 to 1969 and then I continued my primary education in the UK, followed by my secondary education and my tertiary education, all in the UK. I am a graduate from the prestigious London School of Economics (L.S.E.), where several Ghanaian Presidents also hailed from. 

TVM: So how was growing up for you like in Ghana?

MAHESH: It was wonderful. Ghana is a wonderful place; so, growing up here was very nice and peaceful. We received the best education here which formed a solid foundation when I moved to the UK to further my education. 

TVM: Why did your grandfather choose to settle in the Gold Coast and not any other part of the world?

MAHESH: Actually, it was by default. He was with his friend on a ship, and they were passing through West Africa and perhaps they didn’t know exactly where they would end up. They disembarked the ship at Jamestown in those days, and my Grandfather decided he liked Ghana; the people were friendly, the weather was like in India, the environment was good for business and so he decided he was going to settle here and he did. He opened his first store in 1929, and several others later.  I believe it is destiny. We now have our 4th generation in Ghana. Indeed, it is quite amazing as there are only a handful of Indian families who are like this in Ghana. There are several 3-generation families, but only a handful of 4-generation Indian families in Ghana, and we are one of them.

TVM: What are some values you learned as a child and still live by?

MAHESH: Growing up, I had parents who were very strict. Though my father was very successful, he was at the same time very strict with us. So, we learned values like honesty, doing the right things and not wasting money. All these things were taught to us from a young age. We were trained to be independent; not to depend on anyone. Life is all an educational process and  till today, I am still learning. I am learning every day and I believe that the main principles are to excel in one’s work, to lead an honest life and excel at what you do. Everyone can! I believe anyone can do what I can do, given the correct training. They should just be serious and focused, and they can do it.

 

In this automobile industry, I learn a lot of things from my staff, my managers etc. One cannot be right all the time. They show me where I went wrong, and as long as they can convince me of their ways of doing business, I go along with them. It is all a learning process. 

TVM: In 2011, Stallion Group appointed you as the country director, and in March of the same year, you took the reigns of all the automobile companies under Stallion group. What must have contributed to your success?

MAHESH: First of all, I must admit that when I took over, it took me nearly a year to settle down and understand the automobile industry. Though, I had my own businesses separately, they had nothing to do with the automobile industry. This period allowed me time to learn things from importing cars, clearing them, selling them etc. So, when I settled down, then we all had to work together as a team. Here, it is a complete chain, it is a teamwork. I cannot bring the success alone; it is the full team that brings success. The team tries to be one of the leading automobile players in the industry.

It’s trying, it’s testing but we don’t give up and I believe nobody should give up. One can fail today, fail tomorrow, but shouldn’t give up. Finally, one succeeds. We encourage people. That is the reason why we send many Ghanaians abroad for training. They go abroad, they get the training and they come back to teach others. I think this is the secret, to teach one another. Some people don’t like teaching others, but here, we all teach each other. Another part of the success story is is to expand the business; so currently, we have already expanded in Tema, in Spintex Road, in Accra, in Kumasi and, in 2020 we hope to expand to Takoradi as well.

TVM: Under your Leadership, you have won a number of awards from 2013 to 2017. You’ve mentioned a few things that Stallion does that keeps the group going. What leadership strategy would you say has led to such immense recognition and consistent wins in the automobile industry?

MAHESH: The truth is awards are awards; they are things that are given to us. But the awards that matter to me most are awards like Corporate Social Responsibility and Leadership. We were very proud to get such awards.  I think we won the CSR award in 2017 and I believe that all big companies in Ghana should take CSR very seriously. We have a CSR plan and every year we give water to villages where clean water is not available. In fact, we are hoping to do one by March 2020 and this time it will be in the Ashanti Region. We have identified a place and yet to start work there and hopefully by March 2020 it should be completed. I believe these are some of the things that motivate me to carry on and to continue.

TVM: What is your management philosophy?

MAHESH: My management philosophy is, get good people, look after them so that they are motivated and can expand and look after the business for you. Discipline and loyalty must be promoted also. 

TVM: What do you want to be remembered for after? 

MAHESH: I really don’t know what I want to be remembered for. I have tried to always be fair, just, efficient and productive. I hope these principles will remain with the staff at Stallion Group Ghana even when I depart.

TVM: As an Indian by origin, you were the president of the Indian Community from 2002-2006, one of the youngest presidents ever. You were also the Chairman of the Indian Social & Culture Centre from 2012-2016 and part of the Alumni of the London School of Economics in Ghana. On achieving such milestones, what enduring principles guide you through life?

 

MAHESH: I believe some people are innately born leaders. Some people can be leaders, some people cannot be leaders. So fortunately, for me, I fall in that category where I like to lead and to teach. I have my philosophy in life and I can lead. I was one of the youngest presidents of the Indian Association in Ghana and I was there for four years. The normal tenure is 2 years but I was re-elected and I was there from 2002-2006. Yes, I was also the chairman of the Indian Social and Cultural Centre. 

I believe that in life, we all have certain principles and we shouldn’t err from those principles. I was also the president of the alumni of the London School of Economics in Ghana, and you’ll be surprised that there’s a lot of members of the alumni of the London School of Economics in Ghana. 

However, positions are positions, and I believe one should know the right time to let go of such positions. These are community positions and it is not everybody who appreciates your ideology and your philosophy all the time. 

Therefore, once you have done your part, you let someone else take over because not everyone will agree with you. So personally, the greatest thing I learnt was to let go at the right time. It can come with age, as you may have other responsibilities. But in life, people don’t want to let go. But I learnt to let go. One fine day, I woke up and said ‘I have done my part, it is now left to others to do their part.’ 

I’m a Hindu by religion, even though I was born into Christianity and attended a Christian school in the UK, but I believe all religions are the same. I attend my church every week and I believe regular attendance is very important. In fact, I have derived my strength from the Almighty, so I keep going and going. 

TVM: Did you/ do you have any mentors that have shaped your philosophies in life, business etc.?

MAHESH: Well, one mentor I had was Milton Friedman. He was the founder of modern economics and he said “everything works on supply and demand”. I graduated in economics from the London School of Economics, and believed in his economics. Another mentor I have is the great American businessman and philanthropist, Warren Buffet. Today, in my opinion, he is the most successful businessman in the world and who has given so much back to charity and his lifestyle is still so simple. 

TVM: We gathered that you take a walk daily for an hour, what else do you love to do at your leisure?

MAHESH: Yes, I do. I don’t do it out of choice but rather it keeps me fit and healthy; the doctors advised me to walk minimum 45 minutes a day and so I go for a 45-minute walk daily. I walk alone, and it affords me the time to think for myself. Many years ago, I used to play golf also but when I took positions up in my church, I couldn’t wake up so early to play golf and to attend to my church duties, so I gave up the golf and I do the rest. 

TVM: Aside the walk, is there anything else that you love to do?

MAHESH: I do play bridge; a card game. It stimulates the mind, and it’s very good.  I enjoy playing bridge. I play a lot on my laptop and my doctor says “try to stimulate your mind with these word games, card games on so on”, simply because these days when one is getting older, all sorts of things trouble our health, like dementia, so I try to keep my mind active. 

TVM: Are there any kind(s) of books you love to read and which specific one has inspired your journey through life? 

MAHESH: I don’t like reading a lot but what I do read religiously is ‘The Economist’ magazine; it’s one of the best magazines. It reports everything that’s happening in the world and gives you an unbiased report on all those things, so I read it regularly. 

TVM: Stallion has adopted a code of ethics for all of its executives and employees, what are some of the code of ethics you live by in your professional space?

MAHESH: First of all, when a position is given to someone like I was appointed the Country Director of the automobile division, one has to work honestly and tirelessly. Come to work on time, ensure that everything is going in the right direction, delegate responsibilities to people, empower others with certain powers, and be fair in all situations that come your way. Don’t let your EGO get the better of you. 

We are very strict on certain things including punctuality. This is another area I’m very particular about because if somebody loses half an hour a day on a five-day week, the person is losing ten hours a month, resulting to 120 hours a year. So, when it is accumulated, it’s a lot of time wasted.

TVM: You are Ghanaian by birth and definitely you are not new to the local delicacies. Which one is your favourite?

MAHESH: There are few favorites, I enjoy fufu with groundnut soup. I like yam, kelewele and all those milder foods that are not so spicy. 

TVM: Do you have any advice for industry players?

MAHESH: I would say that people who are doing business in Ghana, be it automobile or otherwise, should never give up; they should keep expanding. We have this policy; we try to expand to employ more and more people and by that we are giving good and quality life to many more people. Currently, we are employing possibly four to five hundred people and perhaps if each person happens to be the head of his family of three or four people, indirectly about 2000 people are affected positively. Thus, the more people one employs, more and more people are benefitting indirectly; it is the private sector that can do this; it’s difficult sometimes for the public sector to give employment to so many people.

TVM: What advice would you give to the youth who look up to you as their mentor?

MAHESH: They should acquire good education up to a certain height to make them more relevant. Also, when a job opportunity avails itself, they should grab it and then move on from there. It  is difficult at times to get the first job, and many people turn down their first job  but I will advise people not to turn down a job offered them when they are out of university or school; they should just take it, and move on from there. They should start a working routine, and from there they can rise, get promoted, become better and then can change the job. I’ll advise the youth that as soon as they’re done with their school or university, they should go out there and start working and things will begin to fall into place.  The longer they stay out of work, the harder it becomes to start or to get a good job. One should also not fear failure. You will fail once or twice or thrice, but the next time you will rise and succeed. Never make the same mistake twice - never give up, and always keep your dreams alive.

Social