General

These articles, particularly ones like this, are my love letter to posterity, for they are my thoughts formed from all I have known as I witness the dynamic structures of what is and pontificate on what could be. It is much harder to choose between two timelines when all you have is the theory of both, but that is not the case here. One timeline is playing out. Right now, across Africa and, dare I say, the world, the gap between the rich and the poor is growing wider. And ‘pontificate’ might be the wrong word because I know that as I am neither a politician nor a lawmaker, it is without hubris that I type these words. I see how much of our national and regional efforts speak as though they target the little guy at the bottom but end up widening the divide between those at the top and those at the bottom. It is a dangerous trajectory, one that demands our immediate attention. The very foundation of any stable society lies in its economic baseline, the level at which even the most disadvantaged citizens can live with dignity. When this baseline is eroded, the consequences ripple far beyond the immediate suffering of the poor. The erosion begins subtly, perhaps with a lack of access to essential services or the slow decay of public infrastructure. But over time, it becomes a chasm that threatens to swallow the very fabric of our society. Consider this: when the poorest in society struggle to survive, the middle class does not remain unaffected. The middle class, often seen as the backbone of any economy, finds itself squeezed from both sides. On one end, the cost of living rises, making it harder to maintain their standard of living. On the other end, the tax burden increases as governments attempt to plug the gaps left by failing social services. This pressure cooker environment creates a scenario where the middle class gradually slides into poverty, unable to sustain the lifestyle they once took for granted. And what of the wealthy? The assumption that wealth insulates one from the struggles of the masses is a fallacy. The rich do not exist in a vacuum; their fortunes are tied to the stability of the society around them. When the economic baseline collapses and the middle class falters, the rich face a new set of challenges. Increased crime, political instability, and social unrest become more common as desperation grows among the populace. The wealthy find themselves investing more in security, protection, and other means of safeguarding their assets. Yet, these measures do little to address the root cause of the problem and often lead to an ever-deepening sense of isolation and a feeling of not being 100% unsafe. So, what is the alternative?  The alternative is the other timeline: elevate the economic baseline of our communities and see the ripple effects. Elevating the economic baseline is not just a moral imperative; it is a practical one. Ensuring that even the poorest members of society can live comfortably creates a foundation of stability upon which the entire society can thrive. A strong baseline means a strong middle class, which in turn fosters a robust economy. The benefits are cyclical: as more people have disposable income, demand for goods and services increases, driving economic growth. This growth creates more opportunities, further elevating the standard of living for all. Moreover, a society that prioritises the well-being of all its citizens is one in which the rich can enjoy their wealth without fear of losing it to the chaos that often accompanies extreme inequality. The goal should not be to punish the wealthy but to create an environment where wealth is sustainable and not at the expense of the broader population. If we do not elevate the economic baseline, and if we do not ensure that the poorest in society can live comfortably, then the middle class will inevitably become poor, and the rich will find it increasingly difficult to hold on to their riches. This is not just a question of ethics or morality; it is a matter of practical necessity. A society that fails to support its most vulnerable members is one that sows the seeds of its own destruction.  The time to act is now, before the chasm becomes too wide to bridge in our generation. I have a few basic and known theoretical foundations for why I am getting even more confident in my thinking in this line, with a couple of real-life case studies and the statistical evidence to back me up. 1. THEORETICAL FOUNDATIONS 1.1 Maslow’s Hierarchy of Needs In Junior High or Senior High School, we all got introduced to Maslow’s Hierarchy of Needs. It was proposed by Abraham Maslow in 1943 as a foundational psychological theory that categorises human needs into a hierarchical structure. The theory posits that individuals must first satisfy lower-level needs, such as physiological needs for food, water, and shelter, before focusing on higher-order needs like safety, love and belonging, esteem, and, ultimately, self-actualisation. This hierarchy underscores the essential nature of basic needs as the bedrock upon which more complex human aspirations are built. In the context of poverty alleviation, Maslow’s theory provides a critical lens through which to understand the importance of elevating the economic baseline. If society’s most disadvantaged members cannot secure their basic physiological needs, they remain trapped in a survival mode, unable to contribute meaningfully to societal development.  By ensuring access to essential resources such as food, shelter, healthcare, and safety, we enable individuals to transcend the mere struggle for survival. This progression allows for personal growth and broader participation in economic and social activities, driving the collective progress of the nation. Empirical evidence supports Maslow’s theory in real-world applications. Studies have shown that when basic needs are unmet, economic stagnation and social unrest often follow. For instance, research conducted by the World Bank indicates that countries with high levels of poverty and inequality experience slower economic

The Affirmative Action (Gender Equality) Bill 2024 represents a landmark legislative effort in Ghana’s ongoing journey towards achieving gender parity across all sectors of society. This bill, recently passed by the Ghanaian Parliament, seeks to address the historical and systemic gender imbalances that have long permeated the nation’s political, social, economic, and cultural landscapes. Here are 20 questions and answers on the bill. 1. What is the primary objective of the Bill? The primary objective of the Affirmative Action (Gender Equality) Bill is to ensure the achievement of gender equality in political, social, economic, educational, and cultural spheres within Ghanaian society. This objective seeks to eliminate gender disparities by implementing progressive measures and evaluating their impact periodically. The ultimate aim is to create a balanced representation of genders across all sectors, contributing to national development. 2. What roles and responsibilities are assigned to the Gender Equality Committee established by the bill? The Gender Equality Committee is responsible for ensuring compliance with the bill’s provisions, receiving and analysing annual gender equality reports from organisations, issuing compliance certificates, mediating complaints of non-compliance, and developing national action plans. The committee also liaises with government agencies and private institutions to promote affirmative action and advises the Minister on relevant policy matters. Additionally, it coordinates public education programmes to foster a culture of respect for gender equality. 3. What specific targets and quotas does the bill set for gender representation in governance and public service? The bill sets specific targets for gender representation, aiming for 30% by 2026, 35% by 2028, and 50% by 2030. These quotas apply to appointments in public offices, governance positions, decision-making roles, and leadership positions across various sectors, including ministerial roles, the Council of State, independent constitutional bodies, and the Public Service. Public institutions are required to include gender equality information in their annual reports to the Public Services Commission. 4. How does the bill address gender equality in the security services and the judiciary? The bill mandates that security services ensure gender equality in recruitment and leadership positions, prohibiting gender-based discrimination and promoting equal training opportunities for women. For the judiciary, the bill ensures equal representation of women and men on the Judicial Council and sets targets for gender equality in appointing judges and other judicial officers. The Judicial Council or a sub-committee is responsible for monitoring the implementation of gender equality within the judiciary. 5. What measures are included to ensure gender-responsive budgeting across government sectors? Gender-responsive budgeting is a critical strategy outlined in the bill. All government ministries, departments, agencies, and District Assemblies must include budget lines for addressing gender-specific issues in their plans. The Ministry of Finance is tasked with ensuring adequate resource allocation for gender equality initiatives. Parliament is responsible for demanding accountability for the utilisation of these resources, ensuring that funds are effectively used to promote gender equality. 6. What are the obligations of political parties under the bill to promote gender equality? Political parties are required to achieve progressive gender equality targets in participation and representation. They must adopt measures to support gender equality in candidate nominations and party leadership appointments. Political parties are also required to provide information and financial resources to support gender equality initiatives. The Electoral Commission monitors compliance, ensuring that political parties develop and adhere to gender equality policies and submit annual reports on their progress. 7. How does the bill support gender equality in trade unions and the private sector? Trade unions must reflect the principle of gender equality in their constitutions and work towards gender-balanced representation on their executive boards. In the private sector, employers are required to develop and implement gender equality policies, submit annual reports, and ensure progressive gender equality among employees. The bill provides guidelines for monitoring compliance and addressing grievances related to gender inequality. Non-compliant trade unions may face registration denial or revocation. 8. What incentives and penalties are specified for compliance or non-compliance with the bill’s provisions? The bill includes tax incentives for private sector employers who meet gender equality targets, encouraging compliance through economic benefits. Penalties for non-compliance include fines, imprisonment, and the revocation of trade union registrations. Employers who comply with the bill’s provisions within specified time frames can apply for tax incentives. The bill ensures that both public and private entities are held accountable for their efforts towards achieving gender equality. 9. What are the specific incentives available for private-sector employers under the bill? The bill provides several incentives for private-sector employers who comply with its provisions. These include: 10. What are the offences and penalties under the bill for non-compliance and discrimination? The bill outlines several offences, including: Penalties for these offences include fines ranging from not less than five hundred penalty units to not more than one thousand penalty units, or a term of imprisonment of not less than six months and not more than twelve months, or both. Additionally, employers in the private sector who fail to comply with the provisions of the Act also face similar penalties. 11. How does the bill align with Ghana’s international obligations and conventions on gender equality? The bill aligns with international conventions and regional agreements to which Ghana is a signatory, such as the Convention on the Elimination of All Forms of Discrimination Against Women (CEDAW) and the African Charter on Human and Peoples’ Rights. By incorporating these international standards, the bill ensures that Ghana’s gender equality efforts are consistent with global best practices and commitments. The government is mandated to integrate these obligations into national policies and programmes, promoting gender equality at all levels. 12. How will the bill promote gender equality in education? The bill mandates the Ministry of Education to ensure gender balance in access and opportunity to education at all levels. It includes provisions for reviewing curricula to include courses on gender equality, establishing programmes to address barriers to education for girls, and providing appropriate interventions in deprived districts. Particular emphasis is placed on promoting girls’ education through various incentives and support mechanisms, ensuring their

A striking paradox exists in Ghana: despite our people’s abundant talent and wisdom, many capable individuals shy away from pursuing innovative ventures. The primary reason for this hesitation is a pervasive fear of financial inadequacy. This fear hinders the entrepreneurial spirit and stifles economic growth as potential business leaders opt for safer, less risky paths due to a persistent belief that there is or will be a lack of financial resources. On the surface, it makes sense. But at its core, this issue is not just about the absence of money but also about the psychological barriers and historical contexts that reinforce this fear. Financial constraints are a significant deterrent, creating an environment where brilliant ideas often remain unrealised. Understanding this phenomenon requires a multifaceted approach that considers practical, psychological, historical, and analytical perspectives. For many weeks, my close circle and I have discussed and dissected the complex web of factors contributing to the fear of financial inadequacy among Ghanaian entrepreneurs. In essence, this is their work too, particularly Mr Baddoo. By examining this issue through common sense, psychological theories, historical context, recent findings, numerical data, and statistical analysis, we aim to comprehensively understand why many are reluctant to take the leap into entrepreneurship. Our several hours of discussions were about more than just the problem. We also attempted to explore thoughtful suggestions and potential solutions to empower Ghanaian innovators to overcome these barriers and drive economic prosperity. This also gives some context to why Maxwell Investments Group (MIG) executes the initiatives and partnerships we currently have. Historical Context Historically, Ghana’s financial landscape has been challenging for small and medium-sized enterprises (SMEs). Post-independence economic policies and structural adjustment programs have often favoured large corporations and multinational companies, leaving local entrepreneurs struggling. For instance, the 1980s and 1990s saw significant financial liberalisation, but the benefits were unevenly distributed. Many local businesses could not compete with foreign entities that had better access to capital. This historical marginalisation has left a legacy of financial scarcity that continues to affect Ghanaian entrepreneurs today. Policies from the past, such as the Economic Recovery Programme (ERP) initiated in 1983, aimed to stabilise the economy and promote growth. However, these programs often prioritised foreign investment and giant corporations, inadvertently sidelining local SMEs. This focus on larger entities created an environment where local businesses needed help to secure the necessary capital to grow and thrive. The legacy of these policies is still evident. The financial infrastructure that supports large-scale enterprises is robust, yet the same cannot be said for smaller businesses. The limited access to capital and financial support for SMEs is a direct consequence of these historical economic strategies. Understanding this historical context is crucial for addressing the financial challenges that Ghanaian entrepreneurs face today. It provides a backdrop against which current financial inadequacies can be understood and addressed. Policy and Regulatory Environment Ghana’s policy and regulatory environment significantly impact access to finance for SMEs. While there have been efforts to support entrepreneurship through initiatives like the National Entrepreneurship and Innovation Plan (NEIP), more needs to be done. Simplifying the process for obtaining business licenses and reducing bureaucratic hurdles can make it easier for entrepreneurs to start and sustain their ventures. Additionally, policies that incentivise banks to lend to SMEs, such as tax breaks or guarantees, can improve access to finance. Regulatory challenges and bureaucratic red tape often deter potential entrepreneurs. The complex and time-consuming processes of registering a business, securing permits, and complying with regulations can be overwhelming, particularly for small businesses. Streamlining these processes and providing clear, accessible information can reduce the burden on entrepreneurs and encourage more people to start businesses. Exploratory Solution: One way to address these issues could be through digitalising government services related to business registration and compliance. Implementing online portals for these services can make the process more efficient and transparent, reducing delays and opportunities for corruption. It is also why I collaborate with GCB Bank PLC. As the biggest lender to Ghanaian small businesses, they are looking to allocate circa 40% of all GCB loans to SMEs. This makes them ready to ideate and work with me on how SME challenges can be curbed. About 2000 studentpreneurs are opening no-deposit Entrepreneurship Accounts with free Visa Cards through the’ Entrepreneur In You’ initiative. Sociocultural Factors Cultural norms and values in Ghana significantly influence attitudes towards entrepreneurship and risk-taking. Traditionally, many Ghanaians prefer stable, secure jobs over the uncertainties of starting a business. This aversion to risk is often rooted in the fear of social stigma associated with business failure. In a society where family and community reputations hold substantial weight, the potential shame of a failed venture can be a powerful deterrent. Encouraging a cultural shift towards viewing failure as a learning opportunity rather than a disgrace could foster a more entrepreneurial spirit. Family and community networks play a crucial role in providing both financial and moral support to entrepreneurs. In Ghana, extended families often pool resources to support one member’s business venture. This communal approach can alleviate some financial constraints. However, reliance on personal networks also has limitations, as it may not provide sufficient capital for larger-scale enterprises. Strengthening community-based savings and credit associations can provide a more structured support system for budding entrepreneurs. Exploratory Solution: Community-based financial literacy programs can help shift cultural perceptions and equip individuals with the skills to manage and invest resources effectively. By promoting a culture of saving and investment, these programs can foster a more supportive environment for entrepreneurship. Development Bank Ghana (DBG) is offering certified financial literacy programs that could lead SMEs to collateral-free, reduced-interest loans, which is fantastic news. I learned only this week that DBG intends to have their literacy courses in Twi and Ga as well. The need for financial literacy is also why MIG organised the MIG Business Forum in April. The forum’s theme was ‘The Impact of Financial Literacy on Post-Retirement Financial Security’. Common Sense Perspective The reluctance to start new ventures due to financial limitations is