Month: December 2024

We are back to erratic power supply.⚡️⚡️⚡️ You can call it dumsor or it is not? 🤷‍♂️ Fact still remains, there are serious challenges in power supply to residents and businesses. In the midst of the challenges, there are plenty of opportunities. Offgrid mini solar power supply is one and a low-hanging fruit. We have the sun. 🌞🌞🌞

Enablers

All we need are as follows:

• Sponsor – who sets up the project company to implement a business scheme where the off-grid solar system is installed for residents and businesses without the user paying the total cost. For example, a four-bedroom house, on average, requires a solar installation costing between ¢70k to ¢100k. Affordability may be a challenge for the average worker. However, a four-bedroom household spends a monthly electricity bill of ¢1000 to ¢2500. Under the scheme, the project company bears the initial installation cost. The finance is structured so that you simply pay your monthly bill as the cost of the use of the power credited towards the cost.
• Investor / Financier – the sponsor will require financing. The financing provided is used for the capex and opex for the solar system. The repayment is structured based on the monthly bill payments from the consumers paid to the sponsor/project company and partly used to repay the loan from the lender financier. As security, charges are created over the solar systems, receivables, plus guarantees if required. Equity investors also have the opportunity to be shareholders in the project company.
• Consumers – these are the businesses and domestic users who have to endure the erratic power supply. They get their own power system with the option to buy off anytime they are in the position to do. Meanwhile, they get regular power supply based on monthly bill payments plus maintenance fees payable since the solar system is within their control.
• Regulator – the government still remain the regulator through the Energy Commission (albeit more efficient) to safeguard the interest of all the parties involved. The roles will include licensing the sponsor and project company, setting key performance indicators for supply, liaising with the government to continue with policy to scrap duty on solar panels and accessories to make them a bit cheaper for all, and licensing the installers and certifying the panels and accessories.

Solution?

Simple but workable solution? Why are we not doing it? Well, I wish I knew. I am just sleeping without power in the heat, thinking out loud. We will all be on our way to work after sleeping in the heat while the politicians debate whether it is dumsor or not, and the seller of power who needs consumers will boldly tell us that buying what you want, paying for it, and getting it when you want it is a privilege.

Do you have a plant powering your residence? Even if you do, as you switch to the plant when ECG withdraws your privileges, I imagine you spend about ¢500 on diesel or petrol for each withdrawal of privilege for a night. As privilege is withdrawn 5 to 8 times a month, that is ¢2500 to ¢4000. Offgrid solar power should make economic and environmental sense to you or not? Add the environmental advantages, employment opportunities and profit to the sponsor and financiers. You can think of the carbon footprint reduction and all on your own. Then add to it the goodwill for you or your businesses in relation to sustainability and ESG-related things. 🌏🌏🌏

Conclusion

If you are getting into this, know that it requires a comprehensive transaction structure, well-drafted agreements and compliance with laws. Talk to a transactional lawyer.

Access to finance and its related costs remains a major challenge for doing business in Africa, particularly for small businesses. This hinders the establishment of new businesses and the ability of existing businesses to upgrade or upscale. In some cases, inadequate funding ultimately leads to an abrupt end or failure of business. One reason for this is that businesses mostly resort to traditional financing options without exploring alternative financing options that are now available.

This article highlights these options for the consideration of businesses, especially micro, small and medium enterprises (MSMEs).

Traditional Financing Options

Businesses in need of financing typically opt for traditional financing, which generally includes two main funding options.

The first option is self-financing, which involves the business owner using personal funds or seeking funding from lending institutions such as banks or other financial institutions. This option may sometimes include raising money (through equity or loan) in the capital market. However, self-financing is often limited or inaccessible, prompting the need to explore other funding sources.

The other option, obtaining loans from financial institutions is the mainly available option, traditionally. While this option is widely available, many businesses – particularly MSMEs in Africa including Ghana, are unable to access this funding due to the stringent credit requirements.

Typical credit approval requirements for businesses include:

• convincing evidence of a solid track record, being in existence for a considerable amount of time. This includes evidence of registration and incorporation, licensing and permits, and satisfaction of all legal requirements for the business.
• providing valuable collateral such as real estate, over and above the amount of the loan requested.
• proof of secured future receivables which will be directed through the account of the lender.
• good corporate governance system structured around personalities with proven track records at the helm of affairs, etc

Even where businesses manage to meet all the stringent requirements, they still grapple with high lending costs. Ghana currently averages an interest rate of 35% (as at July 19, 2024).[i] The returns generated by these businesses are often unable to match such repayment obligations, further limiting their reliance on traditional financing options.

Alternative Financing Options

Alternative financing provides a viable option for entrepreneurs seeking to actualise their promising business ideas, businesses in need of additional funds to grow or upgrade, and financially distressed businesses seeking urgent funding to avoid closure. Alternative financing refers to financing other than the traditional financing options explained above.

In other words, alternative financing refers to financial channels, processes, and instruments that have emerged outside the traditional finance system, such as regulated banks and capital markets. MSMEs must, therefore, not restrict their options for sourcing funding to the traditional options but look to available alternative financing options. Some of these options are discussed below.

1. Crowdfunding

Crowdfunding involves raising funds from groups of people, each contributing relatively small amounts, to support a project or business. This group can include family members, old schoolmates, church members, or the public. Although it may seem modern, as it has existed in African culture before traditional financing was popularised. In Ghana, this can be likened to concepts like “susu”, “nnoboa” or “ntoboa”, which fostered saving culture and collective fund-raising for persons in distress.

Imagine you require capital of ¢50,000 to purchase motorbikes to start a delivery business. While securing a bank loan may be challenging, with a good business plan, you could potentially raise ¢100 each from fifty friends on your old school WhatsApp platform, which has over one hundred members to reach your funding goal.

Crowdfunding is typically facilitated through online platforms, but it does not necessarily have to be undertaken through these platforms. Its popularity has surged as a viable option for financing businesses.

Accordingly, as a proactive measure, the Bank of Ghana and the Securities and Exchange Commission (SEC) have issued policies and guidelines outlining the regulations for investment crowdfunding (equity and peer-to-peer lending/debt crowdfunding) and non-investment crowdfunding (donation and reward) in Ghana. These regulations must be adhered to for all formal crowdfunding activities.

2. Grants for SMEs and Start-Ups

Everyone loves getting ‘free’ money, and grants are an excellent way to achieve just that. These grants, often offered by development finance institutions (DFIs), government programs and some not-for-profit agencies, are aimed at supporting vulnerable groups, boosting specific business sectors or promoting some business practices. MSME-targeted grants may focus on businesses that engage vulnerable persons, operate in deprived communities as a source of livelihood for a particular community, or support women’s entrepreneurship.

Grants are typically awarded based on specific qualifications. Businesses seeking grants must meet the stated criteria. Applications for grants may be open periodically or around-the-year applications for consideration depending on the grant awarding agencies.

Some grant awarding agencies that MSMEs can consider in Ghana include AfDB[ii], Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ)[iii], MasterCard Foundation, the World Bank, specific government intervention programs administered by MDAs, and a number of foreign embassies in Ghana which have fund opportunities for innovations, agribusiness, renewable energy, women-led business.

3. Debt-to-Equity Conversion

In a typical lender-borrower relationship, the borrower is expected to repay the principal amount with interest within the repayment period. For businesses burdened with significant debt that struggle to meet current repayment schedules, a common approach is to secure additional loans to repay maturing debt. An alternative financing option, in this case, is to convert the debt into equity. This must be based on an agreement with the lender.

Converting from being a lender to a shareholder offers the advantage of receiving dividends when declared. This is a long-term commitment that may not suit every lender as they may not necessarily want to be a shareholder in perpetuity. Redeemable preference shares, which are redeemable at a future date, can be explored as an option in this arrangement.

Another consideration is mezzanine financing, a blend of debt and equity. In this arrangement, businesses have the option to convert owed debt into equity in case of default only after other senior lenders have been repaid. Mezzanine debt is particularly useful when a company has exhausted bank and asset-based loans but requires additional funds for various purposes like expanding operations, acquisitions, or facilitating the transfer of a business to family members or the management team.

4. Private equity and M&As

One approach for business owners to consider is to open ownership interest by inviting other investors. This can be achieved through private equity participation or through mergers. Instead of aiming for full ownership of an unprofitable venture, consider enhancing your business through strategic partnerships with other equity participants or through mergers and acquisitions. Private equity investors can be approached through private placements or by formally engaging with private equity or investment firms, who play matchmaking roles by introducing suitable investors – including high-net-worth individuals or investment firms.

A merger option can also be a viable strategy for upscaling or the growth of a business. For example, instead of seeking loans or new equity investors as a way of obtaining funds to open a branch in another region, you can propose a merger with a similar business operating in that region which may be seeking an opportunity to operate in your region. This type of arrangement can be mutually beneficial to both businesses without the financial strain if appropriately implemented.

This collaborative approach can offer financial support and expertise, fostering growth and success. It is also an effective strategy for entering new markets. MSMEs could use leverage this approach to position themselves to take advantage of the African Continental Free Trade Area (AfCFTA), tapping into broader opportunities for expansion and integration.

5. Venture Capital / Growth Equity / Angel Investors

This option is often considered the most common alternative financing option. Essentially, venture capitalists are seasoned business experts who invest external funds into startups and businesses in exchange for equity.

On the other hand, angel investors are affluent individuals who use their personal funds to invest in early-stage startup ventures, seeking equity or convertible debt in return. These investments can serve as seed capital for launching a business or as growth equity/expansion capital for more established companies in need of funds for substantial growth. In addition, venture capitalists and angel investors may also provide valuable guidance, mentorship and industry connections to help businesses succeed.

An effort in this regard is the establishment of the Venture Capital Trust Fund in Ghana, which is a government-backed venture capital aimed at investing in SMEs. There are other venture capital funds managed by private firms which businesses can access.

6. Private Listing or Public Offerings

It has long been held that listing on financial markets is reserved for “matured” or “big” companies and that such an option for raising capital was not available to MSMEs. This narrative is being changed by regulators in Africa, who have recognised the importance of providing alternative financing options for businesses. As a result, new avenues are being created to enable SMEs to access capital through the stock exchanges.

In Nigeria, the idea has been mooted for SMEs in the agro-allied sector to form cooperatives where smallholder farmers will be aggregated for easier access to funds and eventual listing on the Nigerian Stock Exchange (NSE).[iv] This approach may be extended to include other businesses and adopted.

In Ghana, the Ghana Alternative Market (GAX) is a parallel market operated by the Ghana Stock Exchange (GSE). It focuses on businesses with potential for growth and accommodates companies at various stages of development, including start-ups and existing enterprises, both small and medium. To list on the GAX, a company must meet specific criteria. Incentives companies may enjoy from listing on the GAX include mandatory underwriting of the minimum offer directly or indirectly by the sponsor. Therefore, there will be no likely failures of Initial Public Offers. Additionally, companies listing on the GAX gain access to a revolving fund to support the cost of raising capital and deferment of up-front fees. This may also apply to funds under the GAX-SME listing support fund to pay fully or partly for the cost of advisory services.

Conclusion

While traditional financing remains a widely embraced approach to business financing, businesses should explore alternative options as well.  The main challenge facing MSMEs remains access to and the cost of credit. Alternative financing has proven to unlock remarkable opportunities for numerous entrepreneurs and foster the growth of small businesses.

[i] https://www.bog.gov.gh/economic-data/interest-rates/

[ii] https://www.afdb.org/en/news-and-events/press-releases/guinea-usd-14-million-loan-african-development-fund-will-support-industrial-development-and-resilience-smes-72224

[iii] https://thebftonline.com/2024/05/27/52-smes-to-benefit-from-agi-giz-afnext-grant-scheme-2/

[iv] https://guardian.ng/how-smes-can-access-funding-opportunities-list-on-nigerian-stock-exchange/

https://mastercardfdn.org/all/the-mastercard-foundation-fund-for-resilience-and-prosperity-launches-agribusiness-challenge-fund/

 

The economy is going through challenges. The government has admitted this, knowing this is an election year. The opposition has trumped it as the basis of voting them back into power. Both the government and the opposition are, therefore, in agreement on this. If there is no faith in their agreement, our submission to the International Monetary Fund programme is a clear confirmation of the current economic challenges we face as a country.

Notwithstanding the economic challenges, the already wide infrastructure gap cannot be widened further. Infrastructure, transport infrastructure (road, lorry parks and stations, rails, and ports), health facilities, housing (emphasis on affordable housing), markets, sports infrastructures, educational institutions, residential and commercial, water and power infrastructures, agriculture, industries, among many, must be developed. The question is how the government continues to finance these infrastructures despite the economic challenges.

This article argues that the best option for financing infrastructure development should shift from government funding to private sector-led funding under a well-regulated and streamlined contractual arrangement between the public and private entities.

Challenges

There is a wide infrastructure gap in Ghana, as in many African countries. Such a gap exists in many sectors, including housing, transport (roads, ports and rail), utilities (water and power), health, education, etc. Increased expenditure is required in order to bridge the infrastructure gap. It has been suggested that for Ghana to make a meaningful attempt at breaching the infrastructure gap, it must raise annual expenditure on infrastructure development to $2.3 billion annually from the current $1.2 billion.[i] However, such an increase in expenditure is unlikely to be realized given the current economic challenges the country faces.

The World Bank captures the economic risk and challenges of the country as follows: “Risks to the outlook include financial sector stress following the DDEP, contingent liabilities in the energy and cocoa sector, domestic policy slippages with the 2024 elections being a particular risk, delays in external debt restructuring, commodity price and other external shocks, and sharper-than-expected monetary policy tightening in advanced economies.”[ii] These risks and challenges have resulted in Ghana seeking assistance from the International Monetary Fund (IMF) under an IMF programme with a bailout package of some $3 billion, which has so far seen disbursement of two tranches of $600 million each for a total of $1.2 billion[iii]. All these are likely to affect infrastructure development.

These economic challenges are going to widen the infrastructure deficit in Ghana as it makes it difficult not only to increase the annual infrastructure expenditure but even to maintain the current level of expenditure. Since 2024 is an election year, there is likely to be increased demand for infrastructure and added pressure on the Government to find a way to meet such demand. However, if the Government is to maintain the resolve not to give in to overspending leading to a wider budget deficit, there is the need to find alternative ways to deal with infrastructure demands than through Government direct budgetary expenditure.

Private Sector Involvement

The most viable option available for the Government is to look to the private sector beyond what is currently the practice. The Government must deliberately seek to share responsibility for infrastructure development and related services with the private sector. The private sector has always been seen as a partner in the economic development of the country. The 1992 Constitution provides the basis for this in the directive principles of state policy when it provides as part of the economic objectives that steps to establish a sound and healthy economy shall have the underlying principles of “ensuring that individuals and private sector bear their fair share of social and national responsibilities including responsibilities to contribute to the overall development of the country”.

There are many examples of government-private sector collaboration for infrastructure development in this country. The financing and construction of the Akosombo dam is a prime example. This is in addition to private finance initiatives in the generation space that resolved the ‘dumsor’ crisis. A not-too-distant example is the Tema port expansion and the implementation of the Ghana card programme. Such private sector-led infrastructure development is not limited only to what may qualify as major projects but can also be used in community-based infrastructure projects such as community centres, health posts, irrigation infrastructure, housing, off-grid power projects, etc.

The important role of the Government in achieving the objective of effective private sector involvement in infrastructure development is to create an enabling environment. A government-implemented public procurement process to engage private parties in the development of infrastructure does not create as much challenge as private finance initiative (PFI) and public-private partnership (PPP) arrangements. There should not be a situation where scarce unavailable government fund is spent on building astroturf parks, community housing, boarding-house facilities at schools, community markets, etc. This needed community-based infrastructure can be financed through a PFI and PPP arrangement. This is in addition to major national infrastructure developments. The Government need to create the enablers for private sector participation.

Enablers

An enabling environment for PFIs and PPPs, as a minimum, must be based on clear regulations, capable implementing agencies with capacity, political will, and properly drafted contractual documents that clearly assign rights, obligations, proper risk allocation, and a monitoring and evaluation system to ensure execution of the project in accordance with the contract. These are the main success factors for the government to get the private sector involved in infrastructure development beyond the usual process of government-financed infrastructure development through public procurement. A brief overview of the factors will be helpful.

• Legal framework – a collaboration between the government and private sector should be based on clear regulations that provide for clear processes and requirements for project initiation, procurement, contracting and implementation. Whilst Ghana has passed the Public Private Partnership Act, 2020 (Act 1039), which came into force at the end of December 2020, it has not seen full deployment and not many projects have been implemented under that Act as one would have envisaged. In order to give effect to the Act, detailed regulations, guidelines and implementation documents must be developed. More importantly, there must be a step-by-step manual that guides both the private and public sector parties on the implementation of PPP projects with clear timelines. Perhaps if the process provided under the Act is simplified with clear guidance, one may see traction in the space.

There are some notable exclusions from the scope of the Act, which requires directives for the purpose of clarity. This will include a purely public finance initiative that is implemented by the public sector.

• Capacity – secondly, the knowledge of the actors is a key success factor. The individuals to implement must have the capacity to do so. The capacity of the implementing entities – ministries, departments and agencies (MDAs) and metropolitan, municipal and district assemblies (MMDAs) – must be built. The implementers must have full knowledge of the process, from project identification, preparation, procurement, contracting to implementation. There must not only be capacity building but a shift in the mindset of officials from the usual public procurement process. Currently, both public and private sector parties shy away from implementing projects under the PPP process, given its complexities in the requirements and approval processes. In building the capacity of the officials, emphasis must not only be on the process but on the mindset needed to get private involvement, which will be helpful to boost private involvement.

This should be a customer-centric approach rather than a regulator-centered approach. That is, the role of the public sector officials should not only be as a gatekeeper but must be geared towards the achievement of the end objective of ensuring the delivery of the needed infrastructure. This will require the public sector to provide the assistance required to ensure the relevant requirements are met rather than simply reject private initiatives.

Public sector capacity must be complemented by experts who understand their context. This calls for the engagement of transaction advisors with the required technical and local context expertise to structure and guide the process through project inception, preparation, procurement and contracting to implementation.

• A champion – related to the above recommendation to ease the complexities is the need to have a private sector participation champion within the Government. The champion must not only be knowledgeable in requirements for PFIs and PPPs but must have the political leverage or clout to ensure the usual public sector inertia and bureaucracy do not frustrate or slow down the process. Implementing a project as a PFI or PPP project generally involves the coordination of a number of separate MDAs and/or MMDAs. A single high-ranking official with the knowledge and the political backing to ensure efficient collaboration on the public sector side and the ability to push through the process based on stated timelines in an efficient and transparent manner is a major success factor.

Whilst we need strong institutions, there is the need for a strong man or woman to ensure the institutions function properly, having a mindset of achieving a particular objective. In this case, that objective is to get the private sector to lead the infrastructure development agenda. That requires a complete mindset and attitudinal change in the role of the public sector. A champion is needed for that effort.

• Procurement and contractual framework – a critical aspect of regulating PFI and PPP initiatives is a transparent procurement process that ensures value for money. The framework should deal with project selection, project preparation and packaging prior to the launch of the procurement process. The procurement process must be transparent and based on a clear process with criteria for selection at each process. Criteria for prequalification and selection at the expression of interest and proposal stages must be well set out. Each stage must be based on definite timelines. There must be a step-by-step guide that guides both the public and private entities. In order to allow for innovation, there should be a process for considering alternative proposals that are not compliant. In addition, there must be a process for considering unsolicited proposals that do not disadvantage proponents or sponsors of such proposals since they take the burden – financial and otherwise – from the public sector in the preparation of the project.

Standard contractual documents must be developed. The use of standard contractual documents simplifies and avoids delays in reaching an agreement between the public entity and the private party. The Government, through the regulator, must develop standard contractual documents that are adopted depending on the type of project, complexities, optimum risk allocation and value for money. The contract must provide for clear project requirements and key performance indicators. These are dependent on the nature of the project. However, the standard contract must provide a guide on the drafting of such requirements.

• Monitoring and evaluation framework – contract administration is a must for a PFI or PPP project. Since the project execution is under the purview of a private sector party whose motive is to make profit, the public sector must have an effective monitoring and evaluation process to ensure the project is implemented first in accordance with the contract and the interest of the public. In most cases, the private party funds the project, design and construct, and operate and maintain the project. The public entity must ensure the project is executed in accordance with the project scope and requirement and achieve the required level of performs. There must, therefore, be effective contract administration, which ensures KPIs are being met at each stage – design, construction, operation and maintenance.

An enabling environment that will attract private sector parties to invest in the development of public infrastructure and provide related services must have the above elements. These together provide a system that incentivises the private sector-led public infrastructure development. Therefore, if the Government, in view of the current economic challenges, seeks to adopt this option for addressing the widening infrastructure gap, it must create and streamline the enablers. However, there is no need to wait. Even in the current environment, the government can still get the private sector involved once the government focuses on this alternative option for the delivery of public infrastructure. What is required is the political will.

Conclusion

The current economic challenges call for the adoption of alternative approaches to public infrastructure investment. A viable option is getting the private sector parties on board, not just as contractors, but in a manner that they lead the funding of the infrastructure projects without recourse to public funds or government-led borrowing from domestic or international financial markets. The use of PFIs and PPPs provides this option. Whilst the Government has continuously talked about this, the current challenges may force the government to move to the next stage of putting in place the enablers and moving to the next stage of actual use to at least close the widening infrastructure gap. The time to embrace private sector-led public infrastructure development is now.

[i] https://elibrary.worldbank.org/doi/abs/10.1596/1813-9450-5600

[ii] https://www.worldbank.org/en/country/ghana/overview

[iii] https://mofep.gov.gh/news-and-events/2022-01-22/ghanas-secures-second-tranche-of-imf-us%24600m-for-disbursement

The Unclaimed Balances and Dormant Accounts Directive

In 2021, the Bank of Ghana, established guidelines for the management of dormant accounts and unclaimed funds held by banks and specialized deposit-taking institutions. Under these directives, an account is deemed dormant if there is no customer-initiated activity for two years and banks are required to maintain a register of all Dormant Accounts.

Banks are also required to notify account holders before their accounts are declared dormant, ensure proper communication for account reactivation, and publish dormant accounts that remain inactive for three years in national newspapers.

Unclaimed funds in these bank accounts after the publication should be transferred to the Bank of Ghana, where account holders or their representatives can subsequently claim without interest.

The directive also outlines penalties for non-compliance and emphasizes the protection of customers’ funds while establishing clear procedures for reclaiming dormant account funds.

What About Digital Money?

Given the widespread use of mobile and electronic money in Ghana, the Bank of Ghana issued similar guidelines to regulate dormant electronic money accounts and unclaimed funds in 2022. Examples of mobile and electronic money include MTN Mobile Money, Telecel Cash, AT Cash, Cryptocurrencies etc.

These regulations are::

• A period of twelve (12) consecutive months of inactivity renders an electronic money account dormant.
• Service providers licensed or authorized[1] to issue electronic money are required to:

1. contact the account holder not less than one month before the account is designated as dormant,
2. provide and maintain a register of all unclaimed funds until such a time that the funds have been claimed by the dormant electronic account holder or their legal representatives.

• In the event the Service Providers are unable to contact the account holder, they may contact the Next-of-Kin or other person designated by the account holder without disclosing the electronic account balance(s).

Recommendations:

Although the processes currently in place are meant to prevent or reduce fraud, they are quite cumbersome and expose the grieving family to further physical, emotional and financial burden. In order to ease the estate administration process without sacrificing its integrity, the following are recommended:

1. The National Identification Authority, the Births and Deaths Registry, the Ghana Association of Bankers, and banks/financial institutions should collaborate and work towards developing a centralized digital system where applicants for LA/Probate are able to conduct a search to determine the bank accounts held by a deceased person. As discussed above, it is a challenge to determine the specific banks deceased persons held accounts in their lifetime. Measures such as the use of secure platforms, requirement for the production of specific identification documents (e.g., death certificates, proof of identity, and relationship to the deceased) may be used to prevent abuse of such a platform.
2. The Judiciary and the Ghana Bar Association, in partnership with banks and financial institutions, should establish guidelines to simplify the process for executors or administrators to verify the accounts and account balances of deceased persons. This will help to reduce the difficulties and stress associated with accessing such funds.

• The rules of the court should make it possible for beneficiaries who are unable to pay the estate tax upfront to have the estate tax deducted from the estate. By so doing, the beneficiaries who may be pinching pennies will be relieved of the onerous burden of raising funds to pay the estate tax. This service could come at an extra fee.

1. The policy of non-payment of interest by the Bank of Ghana when funds are re-claimed should be re-considered especially for funds held in local currency. Given the very unstable nature of the local currency, the funds should be put into an interest-yielding account so that in the event they are re-claimed, there is at least no loss in value.
2. The challenges discussed above are more pervasive when the deceased died intestate. For varied reasons, Africans are averse to making wills. Whatever the reasons may be, it is highly recommended that people make wills in order to control the distribution of their assets and protect their loved ones after their demise.

Conclusion

As Cicero famously said in his book “De Legibus”; “the welfare of the people is the highest law”. This underpins the fact that the law was made to benefit rather than burden man. Accordingly, the law must be used as a tool to promote the advancement of society and not to thwart it.

While he walked this earth, he hid his chest,

For reasons he alone knew best.

But wherever he rests in realms above,

He’d wish his treasures found by love—

By those who knew his heart’s true quest,

     Not locked away in a bank’s dark chest.

[1] Under the Payment Systems and Services Act, 2019 (Act 987)