General

Introduction to Correspondent Banking Correspondent banking may sound like a term straight out of a financier’s dictionary, but its implications ripple through the entire economy, touching the lives of both businesses and individuals. Essentially, it’s the process by which banks provide services to each other, including cross-border transactions and large-scale currency exchanges. Think of it as a global network of financial institutions collaborating to facilitate international trade and business. For a country like Ghana, whose economy is increasingly integrating with the global market, correspondent banking is not just a convenience but a necessity. It enables local businesses to expand beyond borders, allows for the inflow of foreign investment, and supports the country’s developmental initiatives by ensuring that international trade is executed smoothly. Moreover, the remittances sent home by Ghanaians working abroad, which significantly contribute to the country’s GDP, are also processed through these channels. Thus, correspondent banking isn’t just a cog in the wheel of commerce; it’s the very axle on which the wheel turns, driving economic growth and prosperity in Ghana. The Data-Driven Approach In a world where data is king, the financial sector is no exception to its reign. In correspondent banking, data isn’t just numbers and figures; it’s a narrative that tells a story about risk, trust, and opportunity. By adopting a data-driven approach, Ghanaian banks can scrutinise their correspondent relationships and transactions with unprecedented precision. Using data allows international banks to gauge the financial crime risk posed by their local counterparts. This is not just about compliance but about safeguarding the institution’s financial health. By employing sophisticated analytics, banks can discern patterns that may indicate risky behaviour, such as money laundering or fraud. Furthermore, standardised risk scoring is a common language, equipping banks to compare notes with peers and regulators. Such scores can transform subjective guesswork into an objective assessment, enabling banks to make informed decisions about whom to do business with and on what terms. This is critical in a world where financial crimes are not just local but part of a complex global tapestry. Building Trust Through Transparency Transparency in banking is akin to daylight in architecture; it reveals the structure’s integrity. For correspondent banks, transparency is the cornerstone of trust. Local banks can securely and efficiently share information on their operations, governance, and risk management practices through regulated and standardised risk scoring as a common language. This allows local banks to solidify partnerships and attract international business. Case studies around the globe have demonstrated the power of transparency. For example, banks that have embraced open and standardised communication have seen an upswing in investor confidence and customer loyalty. They have also managed to easily navigate regulatory scrutiny, avoiding the pitfalls that befall opaque institutions. In Ghana, where the banking sector is rapidly evolving, transparency is not just a best practice but a strategic advantage that can set institutions apart in the fiercely competitive global marketplace. It’s about building a reputation that crosses oceans and borders. Risk Management in Correspondent Banking In the intricate web of global finance, managing risk in correspondent banking is akin to navigating a ship through a sea of uncertainties. For Ghanaian banks, identifying and mitigating financial crime risks is paramount to maintaining not just their own safety, but the financial security of the nation. Foreign banks that act as correspondent banks to our local banks do the same. It involves meticulously pricing the risk of each correspondent relationship, a task that calls for both precision and foresight. Banks must employ strategies that include rigorous due diligence, ongoing monitoring, and the application of advanced analytical tools. By doing so, they can detect early signs of potential risks, from money laundering to terrorist financing, and act swiftly to prevent them. Implementing these strategies ensures compliance with international standards and secures the reputation of Ghana’s banking sector as a citadel of integrity in the global financial arena. And that is why it is so crucial for our local banks to adopt standardised risk scoring as a common language. This will eliminate the subjective guesswork of some, if not most, correspondent banks that lead to unfairly higher corresponding banking fees. Regulatory Compliance and International Standards Regulatory compliance in the financial sector is not just about ticking boxes; it’s about upholding standards that maintain the sanctity of the global financial system. Ghana’s adherence to international compliance standards showcases its commitment to fighting financial crime and fostering a stable economic environment. The Ghanaian regulatory landscape is shaped by local oversight and international mandates, creating a robust framework for banks. This comprehensive regulatory tapestry ensures that Ghanaian banks are not just local players but are also credible actors on the international stage, capable of attracting and conducting global business with confidence and integrity. The Role of Technology and Innovation The banking sector’s evolution is being propelled by technology and innovation, particularly in Ghana, where digital transformation is rewriting the rules of finance. Advancements in financial technology are providing banks with tools to enhance security, improve customer experience, and expand their services. In Ghana, where mobile phone usage is widespread, banking has leapt from the traditional model to one accessible with just a few taps on a smartphone. This has increased financial inclusion and opened up a new realm of possibilities for banking services. The future of banking in Ghana looks both technologically advanced and more inclusive, with technology as an enabler for broader economic participation. As previously detailed, a regulated, standardised language is essential to lowering correspondent banking fees and removes guesswork from foreign banks assessing the risk of doing business with local banks.  When privately engaged, some companies I collaborate with offer regulated and standardised financial crime risk ratings, intelligence, and analytical tools to small, medium, and global banks. In a tech-heavy Ghanaian financial sector, it is prudent to internally apply data-driven analysis to rate your local banks’ financial crime risk profiles through industry-wide standardised scoring and bring the credit-risk approach to financial crime risk. If one were to, say, engage for regulated and

1. CLIMATE CHANGE & JOURNALISM In a world teetering on the brink of irreversible climate disaster, the need for robust, actionable solutions has never been more acute. At the intersection of science, policy, community action, and global consciousness stands a singular force: Journalism. Armed with the power of the pen and the reach of the airwaves, journalists have the unparalleled opportunity — and indeed, the responsibility — to serve as catalysts for change. As we grapple with current extreme weather events and the stark reality that a majority of Ghana, nay the human race, remains vulnerable, the role of journalism in communicating, educating, and mobilising has evolved from being merely informative to fundamentally transformative. A. The Climate Imperative The world is increasingly besieged by climate challenges. Taking action has never been more crucial. While the threats are dire, opportunities abound for various stakeholders to make a tangible impact. B. The Role of Information Dissemination Journalists, influencers, and even casual social media users wield immense power in shaping public perception and driving collective action. These groups can act as catalysts in the fight against climate change. C. Business Incentives The business community is often viewed as reluctant to participate in sustainability efforts, primarily due to perceived costs. However, we will explore how adopting a climate-friendly stance can be simultaneously morally right and financially advantageous. D. What Lies Ahead From examining the role of journalism in propagating accurate information to investigating the untapped potential of social media influencers, we’ll explore a multi-faceted approach to climate action. Additionally, we’ll shed light on the financial incentives available to businesses for adopting sustainable practices. 2. THE SCIENCE BEHIND CLIMATE COMMUNICATION A. The Critical Intersection of Media and Science Climate change is not merely a narrative about rising temperatures and extreme weather events. It is a story deeply rooted in scientific research and data. Consequently, the media’s role isn’t merely that of a message-bearer but that of an educator in some respects. B. The State of Media Resources As it stands, many media houses will be quick to tell you that they are not fully equipped to disseminate the complexities of climate science to the global community. While there is a concerted effort to bring climate issues to the forefront, the focus often leans towards sensationalism, potentially leading to diluted or even inaccurate portrayals. The media houses have a point. C. Limitations and Challenges There are notable limitations to this scenario. Firstly, media personnel may not always have the scientific background to convey such intricate information. Secondly, the fast-paced nature of news dissemination may not lend itself to the thoroughness that scientific discussion often requires. Thirdly, there may be a lack of access to reliable scientific resources or experts, particularly in economically or socially disadvantaged regions. D. The Need for Up-skilling and Collaboration The obvious solution to this inadequacy lies in enhancing the capabilities of media professionals. This could include specialised training programs in climate science and continuous collaboration between journalists and scientific experts. This approach would help ensure that the information being spread is both accurate and impactful. 3. THE ROLE OF JOURNALISM IN CLIMATE ACTION A. The Media as a Funnel for Climate Awareness In our increasingly connected world, the media is a potent conduit for disseminating information. When it comes to climate change, the stakes are significantly higher. Journalists are not merely reporters; they become stewards of public awareness, tasked with communicating the severity and urgency of the issue. A journalist’s words can influence public opinion, spark debates, and even catalyse policy changes. Hence, the media’s role in shaping a collective consciousness about climate change cannot be overstated. B. The Challenge of Cross-Disciplinary Communication While the media have a substantial role in climate change communication, they also face the challenge of translating complex scientific jargon into accessible language. For instance, terms like ‘carbon footprint,’ ‘greenhouse gas emissions,’ or ‘ocean acidification’ might seem bewildering to a layperson. Journalists, therefore, must serve as intermediaries, capable of conveying scientific data in a manner that the average person not only understands but also feels compelled to act upon. It’s about making climate science as relatable as household discussions. This is clearly a challenge, but not an impossible one. C. The Power of Local Leadership in Climate Communication Local leaders, be they community elders, religious figures, or politicians, have a unique influence over their communities. Their words often carry more weight and immediacy than an outsider’s. Journalists can leverage this local influence by partnering with these community figures. The idea is to ‘localise’ climate change, to make it a pressing issue that communities can relate to and act upon. In essence, the media can serve as catalysts, empowering local leaders to drive home the urgency of the climate crisis. D. The Economics of Climate Communication: A Sustainable Approach Financial resources are the lifeblood of any large-scale initiative, and climate action is no exception. One can have all the good intentions in the world, but without the necessary funding, even the most ambitious projects will falter. That is why I advocate for a sustainable funding model involving both public and private sectors. Journalists should not be left to shoulder this financial burden alone; partnerships should be forged and funding allocated to ensure that accurate and impactful climate communication can occur. Whether through grants, advertisements, or public-private partnerships, a financially sustainable model can drive climate action from the grassroots level all the way to the global stage. 4. THE ROLE OF SOCIAL MEDIA INFLUENCERS A. The Currency of Impressions In the age of social media, influencers are driven by a clear objective: to garner impressions that translate into monetary value or brand partnerships. But what if these impressions could serve a greater purpose—namely, the cause of climate awareness? B. The Power of Recognition Recognition plays a crucial role in human behaviour, and influencers are no exception. By applauding and acknowledging the efforts of those who use their platform for climate advocacy, we can inspire a new wave of influencers to

Before we begin, we must understand the for-profit model that keeps our not-for-profit passion for football alive and thriving, especially overseas. Every sustainable development model of a not-for-profit endeavour needs a robust for-profit engine to secure longevity. THE FOOTBALL REVENUE TRIAD Like thriving enterprises, football clubs hinge on robust revenue streams to fuel their aspirations and sustain their operations. The revenue triad of Match Day Revenue, Broadcast Revenue, and Commercial Revenue forms the financial bedrock of these clubs. Comparatively, European football clubs have traditionally excelled in optimising these revenue streams, with the English Premier League and the Spanish La Liga being quintessential examples. Through recent strategic investments, Saudi clubs are ascending on a similar trajectory. However, Ghanaian clubs lag in harnessing the full potential of these revenue avenues, indicative of a pressing need for innovative financial strategies and infrastructural upgrades. THE INSPIRATION FOR THIS ARTICLE So it’s last Friday, early afternoon. I get a call from Charles Nixon, Head of Joy Business. He’s inviting me to a Thought Leadership Event. But it’s the way that he does it that catches my attention. He reminds me that I have lived in the UK and throws staggering stats at me on the English Premier League’s contribution to the British economy during and after COVID – staggering figures. I wondered if he knew I play in the Amateur Premier League as a goalkeeper with Pilsley Community FC. So he has my attention. Then I realised from the invite and flyers that Dr. Daniel McKorley would be there. McDan, the builder of stadiums, the Ghanaian King of Entrepreneurship, the one-person microeconomy stimulator… that McDan. As a long-time Accra Hearts of Oaks fan, I also geeked out when I saw our former Hearts CEO, Neil Armstrong-Mortagbe, would also be there. The icing on the cake is the coolest Chancellor in Africa: Prof Robert Hinson. And a couple of the finest, most renowned sports journalists and hosts there are. At this point, I’m sold! And it didn’t disappoint. The theme was “Football Economy: Repurposing our Approach to Development, The Saudi Arabian Experience”. The Event was Insightful, to say the least. SAUDI ARABIA’S FOOTBALL RENAISSANCE Saudi Arabia has heralded a new era of football prosperity through strategic investments in top-tier talent and significant infrastructure upgrades. The acquisition of marquee players such as Cristiano Ronaldo, Neymar, and Benzema not only elevates the competitive stature of the Saudi Professional League but also casts a global spotlight on it. The ripple effects of these star-studded signings extend beyond the football pitch, luring in a broader fan base and enticing a slew of sponsorships, thus fostering a conducive framework for revenue augmentation. Parallelly, Saudi Arabia has channelled substantial capital towards modernising football infrastructure. From erecting state-of-the-art stadiums to fostering a conducive environment for world-class talent, these infrastructural strides are indispensable cogs in the wheel of football revenue generation. The blend of international star appeal and infrastructural finesse has significantly bolstered the Match Day, Broadcast, and Commercial Revenue streams of the Saudi Professional League. The resonance of these investments is noticeable in the surging attendance rates, increasing broadcast rights agreements, and lucrative sponsorship deals. The Saudi football blueprint is a testimony to the transformative power of strategic investments in elevating a league’s global stature and financial robustness. IMPLICATIONS ON THE THREE REVENUE STREAMS Saudi Arabia’s football investments have had a ripple effect on the revenue ecosystem of the Saudi Professional League, with a notable impact on the three pivotal revenue streams. The metamorphosis of the Saudi Professional League is symbolic of how strategic investments can substantially uplift the financial health of a football league. The Saudi model clarifies a viable pathway for other leagues that are in a difficult position, laying a blueprint that, albeit requiring a tailored approach, could be emulated to foster financial rejuvenation. A CRUCIAL TAKEAWAY The Saudi example should be seen in the proper context. In Saudi Arabia, the government’s Public Investment Fund, the sovereign wealth fund of the nation, bought majority stakes in the top clubs of the Saudi Pro League, making decision-making on investments into the clubs, infrastructure and the League a far more straightforward endeavour that it would be in, say, the Ghana Premier League. The problem of investment for growth in non-English football leagues is well-documented. On one side of the coin, there’s the allure of escalating League and club revenues through enhanced viewership, akin to the lucrative trail blazed by the English Premier League. Yet, on the flip side lies the upfront financial leap needed to attract superior playing talent, essentially to enhance the on-field product, which, in theory, should magnetise more viewers. This cyclic dilemma is not just a solo expedition but a collective one, where all clubs within a league must be on the same fiscal page. The obstacle? Convincing the cohort of all the club owners in a League to unclench their fists and loosen the purse strings, especially when many are already echoing sentiments of over-investment with underwhelming financial returns. Imagine achieving this in Ghana! Not an easy feat. European football leagues, like the Bundesliga or Serie A, have shown a semblance of the investment-viewership growth model. Germany’s Bundesliga, for instance, prides itself on its boisterous matchday atmosphere, owing to its club’s fan-centric approach, which has also been a drawing card for TV viewership locally and internationally. On the commercial front, clubs in these leagues have sought to augment their brand allure through strategic player signings and brand partnerships, propelling their commercial revenue streams. However, the financial model of football is not without its pitfalls. The English Premier League, despite its global viewership magnetism, has its clubs grappling with soaring player wages, which, as of 2019, consumed as much as 61% of their revenues. Around the same 2019, in Spain, Barcelona’s financial woes with the player-salary conundrum had the club pay 80-90% of all of its revenues to players as salaries. This financial back-and-forth, balancing investment for growth and fiscal prudence, is the tightrope that non-English leagues and