Joy Business News: Recent Episodes
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The Ghana Statistical Service is set to roll out a new module for calculating inflation as it works to reveal the basket of goods.
Inflation for November has gone up marginally to 23% from the October figure of 22.1%. The adjustment was influenced by rising prices of some food stuff on the market over the past month.
The International Monetary Fund (IMF) Board has passed Ghana on the third programme review and approved disbursement of some US$360 million to Ghana.
The Bank of Ghana has assured that the cedi’s recent rebound should continue with the dissipation of election-related uncertainties and the improved foreign exchange buffers accumulated by the central bank.
Industries and traders have ruled out reducing the prices of goods despite the recent improvement in the cedi's performance against the dollar.
Some financial sector stakeholders doubt the Bank of Ghana's gold coin initiative's ability to fully mop excess liquidity.
The Bank of Ghana has released the pricing guidelines for Ghana Gold Coin (GGC) this week. The GGC is issued and guaranteed by the Bank of Ghana and is available in three different sizes including one ounce, half ounce and a quarter ounce.
Sunon Asogli Power Ghana Limited has announced the resumption of operations at its 560-megawatt power plant following an emergency funding intervention by government.
Economist, Professor Lord Mensah describes IMF verdict on Ghana's program performance as a major boost for the economy.
The International Monetary Fund (IMF) board is set to meet in early December and approve the disbursement of US$360 million to Ghana. This will be in line with Ghana passing the third review under the fund programme.
The governor of the Bank Of Ghana, Dr. Ernest Addison states that the Bank Square is an architectural masterpiece that stands as a testament to Ghana's growing influence in Africa's financial ecosystem and its commitment to sustainable development.
The price of liquified petroleum gas has been reduced marginally at the various service stations across the country. It has gone down by 29% per kg.
Oil Marketing Companies have started reducing prices of petroleum products at the pumps. Industry giant GOIL has taken the lead, selling a litre of petrol for GH₵14.35.
According to the Chamber for Petroleum Consumers, the price of petrol is expected to drop about 5.06% and diesel by 3.88%.
The Bank of Ghana (BoG) has directed all financial institutions in the country, including commercial banks and all enhanced payment service providers to halt Remittance Termination Partnership with global remittance giant Taptap Send.
Government policies are not helping the private sector. You have to be brave to do business in Ghana as a Ghanaian. - MacDan.
The Bank of Ghana has revealed that liquidity risk remains well-contained in the banking industry, provided the Government of Ghana (GoG) bonds are liquid.
Finance Minister Dr Mohammed Amin Adam has reassured businesses and market stakeholders, stressing that the Bank of Ghana (BoG) holds sufficient dollar reserves to meet market demands.
Finance Minister Dr. Mohammed Amin Adam has disclosed that the IMF Board is scheduled to meet on December 2, 2024, to discuss Ghana’s Third Programme Review. This review could result in the release of $360 million to the Bank of Ghana to support the Government’s budget and balance of payment needs.
The International Monetary Fund (IMF) has projected Ghana’s Debt-to-GDP ratio to end 2024 at 82.9 percent.
The IMF projects that Ghana will end 2024 with a growth rate of 3%, according to the World Economic Outlook Report released in Washington, D.C., on Tuesday during the IMF/World Bank meetings.
Ghana’s debt is expected to decline to 70% of Gross Domestic Product (GDP) in 2024 from 77% of GDP in 2023. It is also expected to narrow to 68% in 2025 and 2026 respectively
GOIL, TotalEnergies and Shell which used to be the big players in Ghana’s downstream petroleum sector have been losing out on market share in the last few months, data from the National Petroleum Authority, (NPA) has shown.
Government has resumed servicing its Eurobond debts after the completion of the exchange programme with bondholders last week. JOYBUSINESS understands that a total amount of US$520 million has been paid to the Eurobond holders.
The Minister for Food and Agriculture, Dr Bryan Acheampong is projecting prices of foodstuffs will go down by more than 50% in the coming months.Dr Acheampong assured that the government is working hard to provide relief to only farmers affected by the recent dry spell.
Ghana has made remarkable progress on its public debt restructuring, the International Monetary Fund has stated in its Third Review of Ghana’s Economic Facility Programme.
Euro bond exchange program achieves 90% participation. A move which will see Ghana pass for a third IMF review.
The government plans to introduce interest-free loans for farmers to help them recover from the recent drought.
Supply of Liquified Petroleum Gas expect to normalise today as the Tema Oil Refinery says the initial challenge faced has been addressed.
Ghana now importing a lot of its vegetables from Vietnam according to second quarter trade statistics.
Customers of defunct management firms given another chance to register and redeem their claims.
Peasant farmers are calling on the government to eliminate certain taxes on agricultural inputs to lower food prices in the market.
Ghana’s economy grew by 6.9% in the second quarter of 2024, provisional figures released by the Ghana Statistical Service (GSS) has revealed. Compared to the first quarter of 2024, the economy grew at 4.7%.The Services sector continues to be the largest contributor to the growth in the second quarter of 2024 with 44.2%. This is followed by the industry sector with a contribution of 32.2% and the agriculture sector with 23.6%.
Air France will cease its operations to Accra on October 25th due to concerns about profitability of the route.
NPA expectant of further reduction in fuel prices but rules out removing certain levys from petroleum products.
Some Oil Marketing Companies (OMCs) have started reducing prices of petroleum products at the pumps from today, September 16, 2024.Star Oil Ghana is selling a litre of petrol at GH₵12.55, indicating a one cedi drop. This represents a 7.9 percent decline. The company is also selling a litre of diesel at GH₵13.27. This represents a 4.18 percent drop, indicating a 58 pesewas reduction from the previous price.
Securities and Exchange commission sets unit to deal with fraudulent online schemes as it works with national security and the ministry of communications.
Bank of Ghana intervenes in dollar supply for the market as concern grows over shortages.
Government forecasts drop in grain prices as a result of measures it has implemented during the dry spell.
COCOBOD revises 2024/25 cocoa production target down by 19.8% due to unprecedented dry spell. The Chief Executive of COCOBOD, Joseph Boahen Aidoo, has disclosed that the target for the next season has been reviewed down by 19.8 percent due to the unprecedented dry spell witnessed this year. He recalled that harsh weather conditions have made it difficult for many farmers in the Bono and Western North regions to have a successful planting season.
Inflation will continue to ease over the short-term ending 2024 at 20.8%, Fitch Solutions has disclosed in its Ghana Inflation 2024 Consumer Outlook. At the same time, food prices will continue to decline. Here is more in this report. According to the UK-based firm, inflation will average 22.1% in 2024.
Some oil marketing firms have started reducing prices of petroleum products at the pumps from today September 2, 2024.Market leader GOIL is selling at litre of petrol at GH₵14.16.This represents 6 pesewas drop per litre and 0.42 percentage point reduction per litre of petrol.
Government targets the end of next month to complete the disbursement of seeds and fertilisers to farmers affected by the dry spell.
Poultry farmers lament impact of drought on production; warn available feed may last one month. They say the current drought has led to the shortage of grains which possess a serious threat to the industry as they run out of feed for their birds. The farmers have disclosed that most of them have feed that could last for only one month.
The World Bank has revealed that it will start disbursing some US$830 million for various projects in Ghana before the end of 2024. The bank, however explained that this will be dependent on parliament passing three loan agreements currently before the House for consideration.
IMF lifts restrictions on the amount of dollars the bank of Ghana can sell to the market under the fund program.
The government plans to borrow GH¢78.441 billion from the money market in the third quarter of 2024.From that, GH¢53.807 billion will be used to rollover short-term maturities, while the remaining fresh issuance of GH¢24.633 billion will be used to meet its financing requirements.
Economist, Prof. Godfred Bokpin has pointed out that the country may not be able to fund priority sectors of the economy when the country exits the International Monetary Fund (IMF) programme in 2026 due a debt obligation of over ₵130 billion that will be reactivated. Prof. Bokpin warned that the situation could lead to a sharp cut in investment to the agriculture sector, while independent power producers are denied payment if government intends to honour it debt servicing.
The government missed its treasury bills target by GH¢1.44 billion for the second consecutive week. According to auction results from the Bank of Ghana, the government accepted all the bids for the short-term instruments.
Governor of the bank of Ghana Ernest Addisson warns those betting against the local currency during its struggles that their days are numbered.
According to the Bank of Ghana, the stock of Gross International Reserves increased to $6.59 billion in April 2024 representing 3.0 months of import cover, compared with $5.91 billion (2.7 months of import cover) at end-December 2023.
Some banks deny allegations of engaging in practices that put pressure on the Ghana cedi.
NPA sets a new benchmark for the pricing of petroleum products from now to the end of the month.
Ghana Grid Company is expected to receive about 100MW of electricity to boost supply, as stated by West Coast Gas Ghana Limited.
Fitch projects the Ghana Cedi to appreciate and trade at 12 cedis to the dollar by close of year.
Government set to enforce strict publishing of audit findings every quarter as part of the cash waterfall mechanism.
Ghana’s economy to expand by 3.5% this year contrary to World Bank’s 2.9%- Fitch Solutions
Bank of Ghana refuse assertions ‘Gold for Oil’ program has negatively affected the level of gold exports.
The National Petroleum Authority (NPA) has reversed the suspension of the Price Stabilization and Recovery Levy on the price build-up of petroleum products.
Bank of Ghana increases dollar support for market as it rolls out more measures to stabilize the Cedi.
Staff of the International Monetary Fund (IMF), have landed in Ghana to conduct the second review of the three-year $3 billion IMF-backed Programme for Economic Growth (PC-PEG) post-COVID-19.
The National Petroleum Authority (NPA), will from April 2024 set the “floor” for pricing of petroleum products in Ghana, which will prevent any industry player including the Oil Marketing Companies (OMCs) and Liquefied Petroleum Gas Marketing (LPGMC) Firms from pricing below that value or benchmark.
Governor of the bank of Ghana hints of another round of bailout to deal with remaining claims.
Interest rates tumbled for the 12th consecutive week in 2024 in line with most analysts forecasts. The 91-day bill fell by 50 basis points to 25.99%.
The Subsea cable landing Service providers have set sail for their vessels to commence work on cut subsea cables.
The Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, is advising Ghana to reach a better deal with its Eurobond holders, saying, failure to do so risks prolonging Ghana’s debt situation.
The Ghana government through the National Communications Authority is in talks with The Gambia and Benin to roll out free mobile roaming services for their citizens.
Banks in Ghana wrote off GH¢4.33 billion as bad debt in 2023, a 79.2% reduction over that of 2022.
The Minister of Finance, Dr Mohammed Amin Adam, has expressed profound sadness following the passing of Dr John Ampontuah Kumah, the late Deputy Finance Minister. The 45-year-old Ejisu MP passed on after he reportedly succumbed to a brief illness on Thursday, March 7, according to sources close to his family.
Economist, and Dean of the University of Cape Coast (UCC) Business School, Prof John Gatsi has argued that the Bretton Wood institutions cannot penalize Ghana, and consequently withdraw financial assistance to the country based on factors such as passing a law against LGBTQ+.
Government is targeting the end of March this year to sign off debt restructuring agreement reached with Independent Power Producers (IPPs). Government has also stated that the debt owed the power producers has been reduced to about $700 million.
The Ghana cedi has lost about 4.44% in value to the US dollar since the beginning of the year. Last week, the local currency weakened 1.37% to the American greenback week-on-week, as a result of immense corporate demand and cedi-funded foreign exchange pressure.
Interest rates eased for the 8th week running on the treasury market but marginally. Indeed, the yields on the treasury bills continued to ease in line with most analysts' forecasts.
Interest rates fell for the seventh consecutive week despite a marginal increase in the January 2024 inflation. According to the auction results by the Bank of Ghana, the government exceeded its target once again.
The persistent demand pressures for the dollar would continue to weigh negatively on the cedi's performance this week. This follows a marginal depreciation of the local currency last week, taking its year-to-date loss to about 3.0%.
Government raised GH¢6.86 billion via treasury bills, the biggest so far this year. According to the latest T-bills auction by the Bank of Ghana, the government recorded 51.8% oversubscription of the T-bills sale. The target for the auction was GH¢4.58 billion.
Government under Pressure to explore new options to improve Ghanas Revenue position after abolishing VAT on domestic electricity consumption.
Government aims to conclude debt restructuring negotiations with commercial creditors by end of February
International Monetary Fund assures Ghana of support to prevent debt restructuring with external creditors from dragging.
Interest rates fell for the fifth consecutive week on the yield curve, according to results of treasury bills auction by the Bank of Ghana.
Tax Partner at PwC Ghana, Abeku Gyan-Quansah has revealed that the current high tax levels in the country has resulted in some multinational companies relocating to friendlier business environment outside Ghana.
The government recorded 121.4% oversubscription of Treasury bills to the tune of GH¢5.606 billion.
The Vice Chairman of the Trade Union Congress, Ken Koduah, has urged the government to prove its financial capability to the International Monetary Fund (IMF) through other means beyond the imposition of VAT on electricity consumption.
The International Monetary Fund expects revenue to underperform the Ghana Government target by 0.1% of Gross Domestic Product in 2024, while expenditure overshoots the target by a similar margin.
Rating agency, Fitch, is predicting a favorable outlook for banks operating in Ghana in 2024. This follows the successful conclusion of the domestic debt exchange which most banks were negatively impacted.
72% of firms perceive Ghana’s business environment as lagging behind peers – UKGCC 2023 Business & Competitiveness Survey
The Economist Intelligence Unit is advising the Government of Ghana to go into negotiations with private creditors or Eurobond holders with tact since the creditors will demand different and complex restructuring terms compared to bilateral creditors.
The government is expected to open negotiations with Eurobond holders and commercial creditors on Monday, January 22, 2024 in London.
The government has commended Ghana’s bilateral creditors for reaching an agreement with the country to restructure $5.4 billion in loans.
The International Monetary Fund (IMF) has rescheduled its Executive Board meeting to review Ghana’s programme and approve some $600 million for the country to January 19, 2024.
Ghana’s official creditors to meet on Monday to discuss restructuring some $5.4billion to be able to secure next tranche of money from IMF
Be prepared to pay 21% more for some goods and services from next month after parliament approved the VAT amendment bill.
Banks wrote off ¢3.19 billion as bad debt in October 2023, a 9.5% growth year-on-year, the Domestic Banks Income Statement published by the Bank of Ghana revealed. This is compared to the ¢2.92 billion registered during the same period in 2022.
Petrol and diesel prices to fall marginally this week as a result of decline of finished petroleum prices in the world market
Greater Accra Region records the lowest rate of inflation for the first time in many years
I am not a thief; LI to restrict imports is not for my benefit – K T Hammond to critics
Shares of MTN Ghana on the Ghana Stock Exchange is expected to receive a major boost following the appointment of Stephen Blewett as the new Chief Executive Officer of MTN Ghana.
The industrial sector is expected to turn around in 2024, with a growth rate of 3.7%, the Institute of Statistical, Social and Economic Research (ISSER) has stated.
The government raised ¢15.32billion in Treasury bills in November 2023, across the 91 to 364-day bills to cover matured bills worth ¢10.60 billion . This is a 17.0% increase over the month of October 2023.
Bank of Ghana to close down some non-bank financial institutions facing serious liquidity challenges.
The Governor of the Bank of Ghana (BoG), Dr. Ernest Addison, has assured that Ghana will secure the second tranche of the International Monetary Fund (IMF) bailout package and the cocoa syndication loan before the end of 2023
Government working to roll out an electronic VISA platform from the first quarter of next year to deal with VISA acquisition challenges faced by tourists and investors wanting to do business in the country- Transport Ministry
Banks fear election related spending and valid overruns could result in interest rate surge next year and affect deposit mobilization.
International Monetary Fund(IMF) revises again board meeting date on Ghana’s programme review to the first week of December over concerns about China’s position on debt restructuring.
Interest rates fall for the second week as government T bills are oversubscribed by 14.75%
Some Oil Marketing company reduce prices of petroleum products at pumps as some companies link reduction to the decline of price in crude oil.
Government insists the 2024 budget will help sustain current economic recovery and aid private sector growth
Ghana is ranked 5th in Africa with the highest offshore oil rig demand, according to the 2024 State of African Energy by the African Energy Chamber
Ghana Cedi expected to remain relatively stable against the US Dollar following an ease in corporate demand.
The current economic challenge in the country has not impacted negatively on attraction of capital investment; it has rather been a sudden uptick over the past months – Yofi Grant, C.E.O. ,Ghana Investment Promotion Center
Government considers options for the future of National Investment Bank as it rolls out first capital injection after pumping Ghs4b into the institution
Business Community calls for expeditious release of the second tranche of IMF bailout package to sustain stability of the cedi
Ghana's Eurobond debt to reduce drastically to between $7billion and $9billion from the present 13.1billion if bondholders accept a haircut of between 30% and 40%
Finance minister indicates that Euro bond holders may face nominal haircut between 30% and 40% as part of external debt restructuring process
Ghana and Sri Lanka advance with the G20 common framework for debt treatment –IMF managing director
The International Monetary Fund has reiterated its optimism that the Official Creditor Committee, and the Ghanaian government will find an agreement soon on the external debt restructuring.
Improving investor sentiments and the foreign exchange auctions are expected to cushion the cedi against the dollar this week.
Financing assurance critical before IMF Board can approve next tranche of funds- Mission Chief
Reports have indicated that the government has defaulted in the payment of pension contributions for public sector workers for the period of October 2022 to May 2023.
Ghana placed second behind Côte d’Ivoire in Africa in terms of growth of mobile money services, the 2023 Oxford Economics Africa’s Report titled “The Africa Risk-Reward Index”.
A former President of the Ghana Association of Banks Naa Dr. Alhassan Andani has assured that viable projects will not suffer despite move by banks to “scale back” on lending.
Government sets new date to reach a deal with bilateral creditors and Eurobond holders on restructuring of debts.
IMF Staff begins Ghana’s First programme review with Ghana likely to secure 600million before end of year
Government must do more to turn around dwindling manufacturing business - Association of Ghana Industries
Government set to roll out three additional trade centers around the world to support Ghana’s non-traditional exports
Government announces reopening of domestic debt exchange programme for investors who didn't sign-up in February.
IMF demands amendment of Ghana’s Fiscal Responsibility Act to strengthen financial discipline.
Government must ensure fiscal discipline after securing IMF executive board approval – Peter Quartey
The Ghana cedi is expected to record gains against the dollar and other major foreign currencies this week, as the progress of the International Monetary Fund (IMF) deal favorably impacts the market.
Government to pull out of 5 local banks recapitalized through Ghana's amalgamated trust next year as the bank's reports of taking about these banks.
The Chamber of Fertilizer Ghana is calling for a tour audit of activities of the planting of food and jobs after reporting the suspension of subsidy under the program.
Some Oil Marketing Companies (OMCs) have started increasing prices of petroleum products at the pumps from this morning, November 1, 2022.
Government says it is taking steps to protect the investment of citizens as it pushes for a deal with the International Monetary Fund (IMF).
The Bank of Ghana has dismissed social media reports that it will on Sunday, October 30, 2022, slap serious restrictions on holders of Foreign Exchange Accounts and Foreign Currency Accounts, a move to reign in the cedi.
Fuel prices have shot up significantly by about 10 percent even before the fortnight review of petroleum products on Sunday, October 30, 2022, by the Oil Marketing Companies (OMCs). This is coming despite a stable price of crude oil on the world market.
the first tranche of the $1.13 billion cocoa syndicated loan will hit the account of the Bank of Ghana today, October 26, 2022. Joy Business sources at the Finance Ministry indicate that about $790 million is expected to come in from the consortium of banks.
Ghana is likely to undertake some form of debt restructuring to put its debt under sustainable path, the September 2022 Africa Markets Revealed Report by the Standard Chartered Bank has revealed.
Senior finance lecturer at the university of Cape-coast business school calls for some level of price control of basic goods to check inflation and also protect the vulnerable and current economic challenges.
The Ghana Union of Traders Association (GUTA) is blaming recent price hikes of basic items on government’s decision to force some retailers to pay VAT standard rate. According to GUTA, the new policy is retrogressive and compels consumer to go through double taxation.
IMF managing director Kristalina Georgieva promises adequate support for Ghana and other countries hit badly by the current global economic challenges.
Finance Minister, Ken Ofori-Atta is pushing for a quick completion of negotiations with the International Monetary Fund for an economic programme that will address Ghana’s macroeconomic and structural challenges.
The Ghana cedi s likely to endure depreciation pressures in the near term as the foreign exchange market still awaits news on the Debt Sustainability Analysis [DSA] conducted by the International Monetary Fund.
Ghana is ranked 1st by the World Bank with the highest food prices in Sub-Saharan Africa in 2022. According to the Bretton Wood institution’s October 2022 Africa Pulse Report, food prices have since January 1, 2022, gone up by 122%.
Finance Minister, Ken Ofori-Atta, has described initial negotiations with the International Monetary Fund (IMF) for a bailout programme as collaborative.
The Social Security and National Insurance Trust (SSNIT) pension scheme continued to post a negative real rate of return, recording -12.6% at the end of the first quarter of this year.
Institute for fiscal studies warns ghana risks further downgrade from other rating agencies if the country continues to use about 70% of it's revenue to settle debts.
Former finance minister Seth Terkper has said government’s move to go for a programme with the International Monetary Fund (IMF) might delay if figures presented to the Fund are doubtful, hence his push for transparency.
The Institute of Economic Affairs (IEA) is warning against any increase in the Policy Rate (PR), saying, it will be disastrous for the economy.
The Bank of Ghana will sell a total of $420 million to Bulk Oil Distribution Companies via banks in the final quarter of this year, in its Foreign Exchange Auctions.
Oil marketing companies starts reducing prices of some petroleum products with Goil selling a liter of petrol at GHS10.95pesewas whiles the price of diesel remains unchanged.
The Securities and Exchange Commission (SEC) has pledged to intensify its collaboration with the Economic Organised Crime Office (EOCO) to unmask faceless individuals behind activities of online ponzi schemes in the country.
Beginning October, 2022, directors of registered businesses across the country issuing fake invoices, receipts and also failing to file their annual tax returns could face over five years in prison.
The National Petroleum Authority (NPA) is going after the directors and shareholders of some 45 Oil Marketing Companies (OMC) over debts running into more than ₵400 million.
The Domestic Tax Revenue Division of the Ghana Revenue Authority (GRA) has warned businesses issuing fake Value Added Tax (VAT) invoices to consumers to desist from that or face prosecution.
The first tranche of the $1.3 billion COCOBOD Cocoa Syndicated Loan is expected to hit the Bank of Ghana’s (BoG) account by October 2022.
The Ghana Revenue Authority is allaying fears over the projected loss of revenue from tax collection due to the implementation of the African Continental Free Trade Agreement (AfCFTA) in the short term.
Finance Expert, Dr. Williams Peprah, has described the announcement by the Managing Director of the International Monetary Fund, Kristalina Georgiva, as timely that will ensure Ghana gets a programme before the end of the year as a boost to investor confidence.
Ghana could get more than $5bn in total funding from the International Monetary Fund, the World Bank and other development partners if the country is able to secure a program with the IMF.
Mid-year budget review: Government to roll out additional measures to fast-track economic recovery
Government’s negotiations with IMF for an economic program could officially take off next month.
The Public Utilities Regulatory Commission has initiated measures to investigate and identify the cause of the recent power fluctuations experienced by consumers across the country.
Aggrieved Workers of the Ghana Ports and Harbours Authority (GPHA) have called off their demonstration demanding for 20% control of containers at the ports for 10 years.
An International Monetary Fund (IMF) staff team led by Carlo Sdralevich that visited the country last week to assess the economic situation of the country says the Fund will continue to monitor the challenging economic and social situation in Ghana closely in the coming weeks and engage authorities in the formulation of Enhanced Domestic Programme that could be supported by a Fund arrangement.
Parliament has postponed the 2022 Mid-Year Budget Review which was scheduled this week until the government’s engagements with the International Monetary Fund (IMF) are completed.
The visiting team from the International Monetary Fund (IMF) is expected to engage the Vice President, Dr Mahamudu Bawumia, today as part of its data gathering and engagement with the government.
Four teacher unions are currently on strike over their demand for the 20 percent Cost of Living Allowance (COLA).
The Chairman of the Business Committee, Osei Kyei Mensah Bonsu has hinted that the Minister of Finance, Mr. Ken Ofori-Atta is expected to present the Mid-Year Review of the Budget Statement and Economic Policy of the Government of Ghana and Supplementary Estimates for the 2022 Financial Year to the Honourable House on Wednesday 13th July 2022.
Finance Minister, Mr. Ken Ofori-Atta, will on Wednesday, July 13, present the Mid-Year Review of the Budget Statement and Economic Policy of Government and Supplementary Estimate for the 2022 Financial Year to Parliament.
Finance lecturer, Dr. Benjamin Amoah, has described government’s 3 year target to turn around the economy with the aid of the International Monetary Fund as over-ambitious.
According to persons close to Ghana's financial and technical assistance discussions with the International Monetary Fund (IMF), negotiations are nearing a close.
An International Monetary Fund (IMF) staff team, led by Carlo Sdralevich, Mission Chief for Ghana, will visit Accra from July 6 to 13 to begin initial discussions with the Ghanaian authorities about a possible IMF-supported programme.
The Head of Financial Stability at the Bank of Ghana, Dr. Joseph France, says commencing July 1, all persons who have failed to link their Ghana cards to their bank accounts will be unable to withdraw funds from their bank accounts.
The Head of the Financial Integrity Office at the Bank of Ghana, George Nkrumah, is urging financial institutions to ensure strict compliance with employee background checks as a way of minimizing fraud perpetuated by employees.
Ghana has been ranked 2nd in Sub-Saharan Africa by the World Bank in an Open Budget Survey.
Government to immediately seek economic program from International Monetary Fund to secure investor credibility following Bloomberg’s report of fuel shortage.
Transport fares are expected to go up by some 10% later this week if the unionised operators, Ghana Private Road Transport Union and the Ghana Road Transport Coordinating Council, are able to get the Transport Minister’s blessings on this margin of increase.
Governor of the Bank of Ghana denies assertions that inflation targeting framework is ineffective.
Bank of Ghana insists inflation rate is likely to slow down despite the possibility of future increase in fuel prices
Governments quest to check rise in inflation under threat as transport operators begin public engagement over planned increase in fares.
International banks have pledged to lend Ghana $1 billion for budget purposes and to boost central bank reserves as the country seeks to cut its fiscal deficit and stabilize the currency.
Vice President Dr. Mahamudu Bawumia has stressed that moves to digitilise the activities of Metropolitan, Municipal and District Assemblies (MMDAs) will soon commence to help discourage corrupt practices in the public sector.
Interest rates have surpassed 20% mark to reflect the recent increase in the Monetary Policy Rate by the Bank of Ghana. Also, government missed its Treasury bill auctioning target narrowly, indicating the tight liquidity on the money market. The 91-day Treasury bill was sold at a rate of 19.93%, whilst the interest rates of the 182-day and one-year bills were pegged at 22.94% and 24.46% respectively.
Ghana Revenue Authority challenged to embark on routine audit of lifestyles to ensure public office holders pay the right tax.
African Development Bank is forecasting a 5.3% growth rate for the Ghanaian economy this year. According to its 2022 Economic Outlook Report released at the ongoing Annual Meetings, it is however projecting a marginal drop in the country’s growth rate to 5.1% in 2023. The expansion of the economy in 2022 will however be higher than Sub Saharan’s Africa Average of 3.8% in 2022.
The African Development Bank (AfDB) is seeking to increase resources for member countries for more productive projects on the African continent to improve livelihoods. To this end, President of the AfDB Group, Dr. Akinwumi Adesina, is seeking approval from the board and partners of the bank to raise some $33 billion in order to support more initiatives of member countries.
The Governor of the Bank of Ghana, Dr. Ernest Addison, has described the rising inflation rate of nearly 24% as a complicated matter that will be dealt with decisively in the ongoing Monetary Policy Committee (MPC) meeting that began today, May 18th, 2022.
Government will pay a high 25% yield or cost for the 3-year bond which was rollover on Friday, May 20th, 2022. According to the result made available by the Bank of Ghana, it secured ¢470.4 million for the debt instrument, about 76% less than the targeted amount.
New data shows that Ghana presently has the highest interest rates among top 11 African countries. According to Databank Weekly Fixed Income Update, the country’s 18.23% and 19.26% rates for the 91-day and 182-day Treasury bills respectively are the highest on the continent.
Governor of the bank of Ghana insists the economy is growing strong despite threat in the rise of inflation.
The Managing Director of Loyalty Insurance Company Limited, Ernest Frimpong, has expressed worry about some unhealthy practices in the insurance sector. The Managing Director also expressed gratitude to shareholders of the company for raising capital to meet the National Insurance Commission’s minimum capital requirement of ¢50 million.
Deputy Minister of Finance and MP for Atiwa East, Abena Osei Asare says that the government will publicly account for revenue generated from e-levy twice before the end of the year beginning mid-year.
Interest rates continue to surge ahead of the expected hike in the policy rate of the Bank of Ghana from the current 17%. This is expected to increase the cost of doing business in the country further, due to the rising cost of credit. With inflation above 23%, it is expected that the managers of the monetary economy will increase the policy rate to reduce money supply and as a result slowdown the rising prices of goods and services.
The Director of Communications at the Electricity Company of Ghana (ECG), William Boateng, says the utility company is broke and would need to be resuscitated as soon as possible. He said the financial quagmire the company finds itself in has largely contributed to its inability to meet public demands in the manner it ought to over the years.
A survey conducted by renowned accounting and auditing firm, pwc, on the country’s business climate, for UK–Ghana Chamber of Commerce has indicated that cost and access to capital (80%), corruption (68%), cost of land (65%) and government bureaucracy (60%) continue to be the biggest worries of businesses in the country.
Government is yet to fully settled electricity subsidies granted as COVID-19 relief to the Electricity Company of Ghana. This is captured in a report by the power distribution firm submitted to the Public Utilities and Regulatory Commission (PURC) for consideration to increase electricity tariff.
Recent intermittent power outages across some parts of the country are due to gas shortage, Joy Business has gathered. As a result, the power plants that rely on gas have switched to Light Crude Oil (LCO) and Diesel Fuel Oil (DFO). Joy Business further learnt that there is currently a gas deficit of about 364 megawatt (MW) of power in the country.
Mobile-money operators expected to refund wrongful deductions on e-levy transactions within 3 days.
Ghana’s economy is expected to become the 12th fastest growing economy in Sub-Saharan Africa in 2022 with an expected growth rate of 5.2%.
According to the International Monetary Fund April 2022 Regional Economic Outlook Report, this will place the country at a joint 12th position with Cape Verde among league of Sub-Saharan African economies. In West Africa, the nation will place 6th again with Cape Verde.
The International Monetary Fund is urging the government to urgently take some tough measures to restructure the country’s rising debts. It follows a new assessment of Ghana’s debt position which has raised some red flags. The Finance Ministry had said that the expansion of the Ghanaian economy by 5.4% in 2021 means the country’s debt to Gross Domestic Product (GDP) ratio has fallen to 74.4%, from the earlier 80.1%.
Mobile money transactions could drop significantly going forward, following the implementation of the Electronic Transactions Levy (E-Levy) from May 1st, 2022. A day ahead of the implementation, there were massive withdrawals by a cross-section of Ghanaians.
The Industrial and Commercial Workers’ Union (ICU), Ghana has charged government to provide distressed businesses with stimulus package to recover from Covid-19. According to the Union, the ravages of the pandemic is still having a serious ripple effect on the ability of businesses that were affected to bounce back to business, and on the ability of workers who lost their jobs to make ends meet.
Fitch Solutions, research arm of ratings agency, Fitch, has projected modest gains for the Ghana cedi against the dollar in the coming months. The local currency came under severe pressure in the first three months of 2022, making it the worst performing currency on the African continent during the period. But the recent monetary policy actions by the Bank of Ghana and fiscal measures from the Finance Ministry appears to be yielding results.
The price of Brent crude oil is expected to average $100 a barrel in 2022, a new World Bank report released on Tuesday in Washington, D.C. has said. The report, known as Commodity Markets Outlook, attributed this to war-related trade and production disruptions. The report said the development represents the highest level of crude oil price since 2013 and an increase of more than 40 percent compared to 2021.
World Bank President, David Malpass, is urging the Bank of Ghana and other financial regulators around the world to use all available tools to help check the rising inflation rate. The general price levels of good and services in the country hit a record level of 19.4% in March 2022. The same can be said for other countries, such as the USA and UK, which has seen inflation rate reaching historic levels and threating economic stability.
The Ghana Revenue Authority (GRA) says it is still on course with its modalities towards implementing the Electronic Transfer Law (E-Levy) on May, 1, 2022. The Commissioner-General insists that despite legal suits against the move, the Authority is yet to receive any directive to hold on with the scheduled roll-out.
The World Bank Group has announced that over the coming weeks it will be discussing with its Governors and Board of Executive Directors a 15-month crisis response financing package of around $170 billion to help countries address multiple overlapping crises. Of this, the Bank Group is working to provide an initial crisis response of around $50 billion by June 30, 2022.
Ghana’s moderate to high exposure to imports of wheat, edible oils and fertilizers from Russia has triggered increases in the prices of foodstuffs and certain commodities on the market. According to the latest World Bank Africa Pulse report, Ghana imports about 33% of wheat and a little above 20% of fertilizers from Russia, ranking it among African economies with high dependence on the European country.
The implementation of the Electronic Transfer Levy (E-levy) from 1st May, 2022 will boost foreign investor confidence in the short term, Fitch Solutions, research arm of ratings agency, Fitch has stated. It’s however worried that Ghana’s debt will rise because of the expected revenue shortfall in the budget, a situation that will impact on the cedi.
Fuel prices will remain largely unchanged or go down marginally, beginning 16th April, 2022, the Institute for Energy Security (IES) has said. “For the remainder of April 2022, with the 1.5%-cedi depreciation against the dollar, 1.06% fall in petrol price, 3.65% fall in diesel price, and 3.72% fall in the price of LPG per metric ton, the IES projects relative stability in the price of fuel on the local market”, it said in a statement. However, it said “some Oil Marketing Companies (OMCs) may decide to reduce their prices marginally in order to increase their market share”.
Economist Courage Martey has backed claims by the Ghana Statistical Service (GSS) and Bank of Ghana (BoG) that developments in Russia and Ukraine have significantly contributed to the spike in the inflation rate. General price levels of goods and services have gone up consistently over the past months to hit 19.4 per cent in March.
Prices of petroleum products expects to witness marginal reduction beginning this Friday based on data that Joy Business has secured from the Bulk oil distribution companies
Banks wrote off ¢349.36 million as bad debt in the February 2022, the Domestic Money Banks Income Statement has revealed. This is lower than the ¢364.46 million recorded in February 2021. The total provisioning comprising loan losses, depreciation, among others contracted in growth by 4.1% in February 2022, after increasing sharply by 62.2% in February 2021.
Government will borrow ¢4.59 billion as fresh funds in the second quarter of this year to finance part of its budget. This will however be higher than the ¢3.78 billion borrowed in the first three months of 2022. From the Issuance Calendar, the entire ¢4.59 billion is expected to be mobilize from the domestic market, though non-resident investors can take part in some of the bonds that will be issued.
Economic Advisor and Spokesperson for the Office of the Vice President, Dr. Gideon Boako, has justified the seeming silence of the Vice President, Dr. Mahamudu Bawumia on the state of the economy till Thursday 7th April, 2022. According to him, this was to avoid making a whole lot of noise at a time when the government was expected to be finding a solution to the economic crisis that was threatening the Ghanaian economy.
Vice President Dr Mahamudu Bawumia is expected to speak on the economic state of the country later today. Following the continuous price hikes on fuel and commodities and the depreciation of the cedi, there have been calls for Dr Bawumia as the leader of the Economic Management Team to address the issues publicly.
As of December 2020, government had injected ¢21.5 billion into State Owned Enterprises (SOEs), the 2020 State Ownership Report has revealed. These included government subvention of ¢1.476 billion, on-lent loans of ¢14.73 billion, an outstanding stock of government-backed guarantees of ¢2.383 billion, contingent liabilities of ¢138.99 million ($24.13 million) from ongoing Public-Private Partnership (PPP) projects. The remaining component was from government support and bail-outs to some specified entities.
State Owned Enterprises (SOEs) recorded ¢2.61 billion loss in 2020, according to the 2020 State Ownership Report. This however represents nearly 50% improvement over the 2019 aggregate loss of ¢5.16 billion. This the Finance Minister, Ken Ofori-Atta, is calling for more urgent and collective work to address these losses.
The cedi recorded an 18.21% rate of depreciation to the US dollar in the first quarter of 2022, according to Bloomberg. This still ranked the local currency as the worst among African currencies with the “Worst Spot Returns”. However, for the timely intervention by the Bank of Ghana, the situation could have been worse.
The Ghana Chamber of Bulk Oil Distributors (COBD) has forecast an up to ¢1 per litre reduction in the price of petrol and diesel. This follows several engagements the COBD had with the Bank of Ghana (BoG) and stakeholders to fashion out interventions, aimed at reducing the prices at the various pumps. The Chief Executive of the Chamber, Senyo Hosi, says additional measures have been agreed upon and are expected to reduce prices by Friday.
Government’s tight fiscal measures targeted at closing the budget-deficit to 7.4% of Gross Domestic Product (GDP) by the end of 2022 is fueling the longest bond rally in two months. According to Bloomberg, the yield on the country’s $1 billion bond maturing in 2026 declined for the sixth consecutive day, as President Nana Akufo-Addo reiterated government’s commitment to get the economy back on track.
Finance and Economics lecturer, Professor Godfred Bokpin, has expressed worry about the passage of the Electronic Transaction Levy (E-Levy), saying, it will increase the cost of doing business and undermine the private sector ability to create jobs. According to him, the E-Levy is a lazy way of collecting taxes, adding, there are too many indirect taxes already overburdening businesses and consumers.
The Russia and Ukraine war keeps impacting global food supply chains and Ghana’s major export earner, cocoa, is not left out. Chief Executive of Ghana Cocoa Board (COCOBOD), Joseph Boahen Aidoo, says the situation has skyrocketed fertilizer prices, making it next to impossible to import the needed ingredients for cocoa cultivation.
President Akufo Addo has lifted the mandatory wearing of nose masks in public. “From tomorrow, Monday, 28th March, the wearing of facemasks is no longer mandatory,” he said. This was disclosed during his 28th COVID-19 address to the nation on Sunday night. He also noted that all in-person activities, such as those that take place in churches, mosques, conferences, workshops, private parties and events, cinemas and theatres may resume at full capacity, as long as the audience and/or participants are fully vaccinated.
The Minister for Finance, Ken Ofori-Atta, has said the government will save about GHC3.5 billion from the 30% salary cut of ministers and heads of state-owned enterprises (SOEs).Addressing the country on measures being taken to curb the economic challenges Ghana is facing, Ofori-Atta said: “With regard to savings, in terms of our initial calculations of all of that [the salary cut] will be about GHC3.5 billion that we expect to be able to save.
The Ghana cedi is expected to start recording improvement and stability against the US dollar from 1st April 2022, following recent actions by the Bank of Ghana coupled with upcoming fiscal measures by the Finance Minister, Ken Ofori-Atta.
Some forex bureaus and banks are now selling the local currency at ¢8 to one US dollar on the retail market. This takes the depreciation of the cedi to the American ‘greenback’ to a little above 16% since the beginning of 2022. However, the local currency has lost 1.45% in value to the world’s most important currency in only three days of trading this week. It was selling at about ¢7.85 to a dollar on the retail market on Friday, March 11th, 2021.
The Ghana Online Drivers Union has threatened to embark on a sit-down strike over what they have described as unfair treatment, better conditions of service, threats and poor remuneration from their operators.
The Institute for Energy Security is appealing to the government to fast-track intervention in the rising fuel prices at the pumps to cushion consumers against hardships, following an expected increase in fuel prices at the pumps beginning today, March 16th, 2022.
The rate of depreciation of the Ghana cedi has slowed down, as the local currency went down by a little above 0.20% to the dollar the whole of last week. This will come as good news to businesses, importers and consumers who are worried about the rapid decline in the value of the local currency.
The Vice Chairman of the Public Interest and Accountability Committee (PIAC), Nasir Alfa Mohammed, says whereas the value of Ghana’s oil and gas exploration and production activities are valued at about $31 billion, Ghana only generated about $6.5 billion. This was from the PIAC’s latest analysis which took into account revenues starting from 2011 to the end of 2022 from Ghana’s oil fields.
Inflation shot up to 15.7% in February 2022, as a result of significant jump in food prices, the Ghana Statistical Service has disclosed in its Consumer Price Index report. The rate is the highest since 2016 and confirms reports that food prices will continue to soar because of the Russia-Ukraine war. According to the data from the GSS, the drivers for the surge in inflation were Housing, Water, Electricity and Gas (25.4%); Transport (18.3%) as well as Food and Non-alcoholic beverages (17.4%).
Fertiliser shortage due to the Russia-Ukraine war will impact negatively on crop production and soil improvement in Ghana, particularly, under the government flagship programme, ‘Planting for Food and Jobs’, which rely heavily on inorganic fertilisers, a report by the Chamber of Agribusiness, Ghana has revealed. According to the report, fertiliser production and supply will worsen this year than in the COVID-19 era and will be further aggravated by economic sanctions imposed by the European Union NATO, the United States, among other nations on Russia.
The rate of depreciation of the Ghana cedi almost doubled within just a week or only the first week of March to 14.21%, since the beginning of the year. This was against 7.6% recorded at the end of February 2021. The decline in value of the cedi still ranked it as the worst performing among Africa’s top performing currencies.
Speaking at the 65th Independence Day celebration in Cape Coast on Sunday, Mr. Akufo-Addo said the nation can bounce back to its feet and build the economy it wishes for if all citizens prioritize their duties. He stressed that this move will reduce the country’s dependence on foreign aid.
Cabinet has begun discussion on possible subsidies for petroleum consumers, as the rising cost of fuel prices in the country bite hard at consumers. According to Deputy Minister for Energy, Andrew Agyapa Mercer, although it would come as a cost to the taxpayer, Cabinet is taking the necessary steps to find relief for Ghanaians.
The general risk in the economy occasioned by slowdown in fiscal consolidation and low revenue, amongst other factors are the major reason behind the rising interest rates on government securities, particularly Treasury bills, Partner at accounting and auditing firm, Deloitte Ghana, Yaw Lartey has said. Since the beginning of the year, the yield on government securities have been going up but marginally.
The Ghana cedi has been classified as the worst of African currencies with the “Worst Spot Returns” by Bloomberg. Bloomberg pegs the depreciation of the cedi to the dollar at 8.86% between January 1, 2022, and February 25, 2022.
The Bank of Ghana says it has adopted a cautious approach with the piloting of the digital currency – the e-Cedi, despite anticipation of the introduction of the electronic currency by a cross-section of Ghanaians. According to its Head of Innovation and Fintech, Kwame Oppong, the Central Bank is following the due process in piloting the digital currency and is therefore not taking any risk and chances at all.
Commercial debt largely from Eurobonds constituted the largest chunk of the country’s external debt as of the end of November 2021, data from the Bank of Ghana has revealed. The commercial debt of $16.01 billion, represented 42% of total external loans of $27.89 billion, and an increase of $3.38 billion over the previous year. It was followed by multilateral and bilateral loans of $8.08 billion and $3.79 billion respectively.
Government spent ¢33.61 billion on interest payments alone in 2021, the January 2022 Bank of Ghana Monetary Policy Report indicates.This was higher than the envisioned target of ¢32.5 billion.
The local currency has crossed the ¢7 to one dollar mark on the retail market with less than two months into 2022. Joy Business checks at some forex bureaus and commercial banks indicate that a dollar is being sold at a little above ¢7 cedis.
A new World Bank report has revealed that Ghana had accumulated significant government arrears prior to Covid-19 pandemic. This is far higher than the projected arrears post Covid-19. The report dubbed “Finance for an Equitable Recovery” indicates that the percentage of the country’s arrears was estimated at almost 5% of the country’s Gross Domestic Product.
As expected, the Monetary Policy Committee of the Bank of Ghana (BoG) has kept the policy rate at 14.5%. This is the first time the rate has been kept same since it was adjusted upwards by 100 basis points in November 2021.
The Ghana cedi has depreciated by 4.70% to the US dollar with only 45 days into the year, as pressure mounts on the local currency. This ranks it the second worst performing currency in Africa, among 15 top performing currencies. It is presently trading at ¢6.60 to one US dollar on the forex market.
Interest rates have started going up but marginally, as the challenges within the fiscal economy reflects on the monetary economy. According to the latest auctioning results of Treasury bills by the Bank of Ghana, interest rates of the short term financial instruments went by slightly.
Deputy Finance Minister, Abena Osei-Asare has announced 20% cuts to the expenditures of Ministries, Departments, and Agencies. According to her, this is part of the government’s efforts to reduce expenditure in order to deal with the country’s growing debt.
The present rigidities in the economy will trigger more borrowing by government unless aggressive revenue mobilization and expenditure rationalization is pursued, Economist and Senior Lecturer at the Economics Department of the University of Ghana, Dr. Adu Owusu Sarkodie has said.
Public interest and accountability committee rejects oil funded market project in some parts of the country describing execution of work unacceptable.
Government has been advised to slash salaries and other emoluments of its appointees to demonstrate commitment to reducing expenditure and improving the fiscal economy in this difficult time. According to Senior Financial Analyst, Joe Jackson, this will send positive signals to investors that government is committed to addressing the challenges in the economy.
Ghana’s international bonds are no more lucrative, as the country faces challenges with liquidity and refinancing its debt, some Senior Financial Analysts who spoke to Joy Business on the back of the downgrade of the country’s credit rating by ratings agency, Moody’s.
From a serious policymaking point of view, the question as to whether “Ghana should go to the IMF” is not a complete, or particularly meaningful, one.
The International Monetary Fund (IMF) has indicated that it is ready to extend support to Ghana if the request is made for program support. This was in response to an e-mail sent to the Fund by JoyBusiness over calls for government to subscribe to seek IMF support to help stabilise the economy.
Ghana’s leading oil marketing company, GOIL Company Limited, has adjusted its fuel prices at the pump by 0.15 pesewas. GOIL Company Limited announced the new prices for Petrol and Diesel effective Tuesday 1st February,2022 at 2pm. The new price increase came into effect this afternoon with a litre of petrol now selling at GH¢7.00 from GH¢6.850. A litre of diesel now also sells at GH¢7.00 from GH¢6.850. This represent an increase of 0.15 Pesewas.
Mobile money transactions for last year significantly outstripped cheque transactions by a massive ¢770.4 billion, the Summary of Economic and Financial Data from the Bank of Ghana has revealed. This is compared to ¢522.9 billion recorded in the eight months of 2021.
Ghana’s public debt stock shot up by ¢2.7 billion to hit ¢344.5 billion in November 2021, the January 2022 Bank of Ghana Summary of Economic and Financial Data has revealed. This pushed the debt to Gross Domestic Product (GDP) to 78.4% and further emphasised that the country’s debt has reached disturbing levels.
Commercial banks are making a last-minute appeal for the tax on electronic transactions to be reduced marginally to not more than 1%. Speaking on PM Express Business Edition, Chief Executive of the Ghana Association of Bankers John Awuah noted that the current 1.75 per cent may erode some gains made so far in the banking sector and financial inclusion.
Leading gold mining company Gold Fields Limited says it expects to invest about $500 million into its Ghana operations in the coming years, if its plans for reinvestment are approved by leadership of the company. At the moment Gold Fields' operation in Ghana are tied to three mines. The Tarkwa Mine, which is the single largest gold producer in Ghana, producing more than 500,000 ounces a year, with the life of the mine being 13 years, the Damang Mine, an open pit mine, and the Asanko Mine which is operated by Galiano Gold through a joint venture arrangement.
Most mining companies that receive supply of explosives from Maxam may have to cut production if moves to get Maxam to resume production is not fast-tracked. Maxam was shut down last week after orders from the Minerals Commission.
Former Finance Minister, Seth Terkper, has said government’s proposed Electronic Levy (E-Levy) will distort the tax structure, arguing that it will lead to paying double tax and also result in paying taxes on savings, which is inappropriate.
Ratings agency, Fitch, has stated that the 1.75% Electronic Transaction Levy (e-levy) will boost Ghana’s revenue and drive an increased in government revenue to 20% of Gross Domestic Product (GDP) in 2022. This is compared to an estimated 15.4% of GDP in 2021.
Government has suspended expenditure in the 2022 Budget by 20%, the Finance Minister, Ken Ofori-Atta has announced. Parliament has already approved government’s total expenditure for 2022, but the government, in a prudent fiscal consolidation move, has decided to cut down on its expenditure, up to a whopping 20%.
From 1st July, 2022, the Ghana Card will be the only identification for banking or financial transactions, the Bank has disclosed. This is in furtherance of its objective of ensuring the safety of the financial system.
The Ghana cedi may not depreciate by more than 5% in 2022 to the US dollar, Currency Analyst, Courage Martey has pointed out. The local currency lost a little over 9% to the dollar on the retail market and about 4% to the American currency on the interbank market, in 2021.
Government is likely to continue to record wide budget deficits and arrears, particularly in the short term, despite planned reforms to broaden the tax base, Fitch Solutions, research arm of ratings agency Fitch has said.
International ratings agency, Fitch, has downgraded Ghana’s Long-Term Foreign-Currency Issuer Default Rating (IDR) to ‘B-‘ from ‘B’ with a negative outlook. the downgrade of Ghana’s IDRs and Negative Outlook reflect the sovereign’s loss of access to international capital markets in the second-half of 2021, following a pandemic-related [COVID-19] surge in government debt.
Petrol and diesel may sell at ¢7 per liter each for the first time, beginning this weekend.This follows a projected 40 pesewas per litre increment in petroleum products by the Institute for Energy Security.
The World Bank is forecasting a 5.5% expansion of the Ghanaian economy in 2022. The projected growth rate is however lower than the International Monetary Fund’s 6.2% Gross Domestic Product (GDP), but higher than Sub-Saharan Africa’s average of 3.6%.
The Social Security and National Insurance Trust (SSNIT) wants broader consultations with government and labour unions over a possible increase of retirement age, from 60 to 65 years.
The International Monetary Fund is maintaining its 6.2% forecast of the expansion of the Ghanaian economy in 2022. This is bigger than the 4.7% growth rate it projected for last year.
The Ghana cedi is expected to end 2022 at ¢7.03 to the US dollar, the Center for Economics, Finance and Inequality Studies has projected. According to the Center, its forecast of the end-year depreciation of the cedi to the dollar is 99% accurate.
The Ghana Revenue Authority (GRA), has for the second time deferred the implementation of the reversal of reduction of values of imports (known as Benchmark Values) on selected items, to Monday 17th January 2022. The Authority explains that the transitional arrangements are to ensure a smooth implementation.
The Social Security and National Insurance Trust has extended the deadline for Members of the Scheme to merge their SSNIT and National Identification Cards, popularly called Ghana Card from 31st December, 2021 to 30th June, 2022. This is expected to bring a huge relief to several Ghanaian workers who are yet to merge their SSNIT and National ID Cards.
The Ghana cedi placed 14th among the league of African currencies in 2021, despite an impressive run during the first half of the year, Bloomberg tracking of African currencies has revealed. However, the local currency was classified among the currencies with the ‘worst spot returns’.
The Ghana cedi ended last year with a depreciation of a little above 9% on the retail market and 3.93% to the dollar on the interbank forex market. This performance has been described as mixed by analysts and currency traders because of the spread between the retail and interbank market.
GRA will from January 4, 2022, commence the implementation of the government's directive on the removal of the discount on the values of imports. The Minister for Finance, Ken Ofori-Atta, during the presentation of the 2022 Budget said the government will reverse the discount on value on import of goods on which the benchmark values applied because importers were not reducing the prices of goods they sold.
The Bank OF Ghana moves to consolidate recent gains made by the Ghana cedis as it increases dollar support for commercial banks for the past three days.
Fuel prices on the market will go down marginally before the close of the weekend, the Institute for Energy Security (IES) has stated. This is because the Bulk Oil Distribution Companies are feverishly preparing their profitability statement with the anticipation of a fall in petroleum prices.
Emirates Airlines has extended the initial 48-hours ban for flights from Accra to Dubai indefinitely. “Emirates flight suspension from Accra to Dubai effective December 27, 2021, is now extended until further notice,” the airline said in its urgent broadcast sent to trade partners on Tuesday, December 28, 2021.
Finance Minister, Ken Ofori-Atta, has taken a swipe at the 60,000 Ghanaian professionals including Accountants, Doctors and Lawyers, and many more who have not been paying taxes, but lament the 1.75% Electronic Transaction Levy expected to be implemented from 2022.
Government advised to fully implement policies in 2022's budget targeted at bringing down the country's debt, Energy Ministry to engage PRC on ideal tariff structure to rationalize cost of utility and other stories.
Deputy Finance Minister, John Kumah has said that the GH₵100 limit for the e-levy is meant to protect the poor and vulnerable in society. According to Dr. John Kumah, the Ministry conducted a survey, the outcome of which informed the decision to exempt transactions up to GH₵100 from the levy.
Former Finance Minister, Seth Terkper, is charging government to take debt repayment very seriously since any delay would further increase interest costs on loans and escalate the country’s debt burden.
Ghana’s economic outlook will remain negative until the fiscal economy which will be reviewed alongside its Sovereign Credit Rating in the first quarter of next year improves, Fitch Ratings has said in its latest report on Sub-Saharan Africa Sovereign Credit Overview. This is coming few days to the presentation of the 2022 Budget, in which investors, analysts and market watchers are keenly watching and waiting for economic policies that will help stabilise the economy.
Ghana is jointly ranked 12th with Madagascar, out of 50 countries on the African continent with the high mortgage interest rate in acquiring a house, the 2021 Centre for Affordable Housing Finance in Africa Report has revealed. This is coming despite the cost of a standard 2 bedroom house in Ghana is about $30,000, and as a result places the country in the 23rd position with the cheapest price of housing on the continent.
Government could turn to the Bank of Ghana for financing if it fails to enter the international capital market next year to issue a Eurobond, international research institution, REDD Intelligence has said. This is coming despite the Governor of the Bank of Ghana, Dr. Ernest Addison, ruling out provision of more loans to the government to help narrow the budget shortfall, saying, it would put exchange rate stability at risk.
Some Oil Marketing Companies (OMCs) have started increasing prices of fuel at the pump stations. Total has taken the lead, selling a liter of diesel and petrol at ¢6.90 respectively. the upward adjustment is as a result of rising crude oil prices on the international market. The price of crude oil is presently going for about $82 on the world market.
Government would ultimately opt for financial support from the International Monetary Fund if liquidity or cash constrains grows, Fitch Ratings has stated. “The government has so far chosen not to pursue a regular IMF programme. However, we believe the authorities would ultimately opt to seek IMF financing if liquidity strains mount. The IMF classifies Ghana as being at high risk of debt distress, but we do not believe that an IMF programme would entail a debt restructuring.”
The Government of Ghana may consider applying for a debt restructuring under the G20 Common Framework, if the country fails to access the international capital market in the first-half of 2022. This is as a result of rising interest rate on its international bonds.
Minister for Communications and Digitalisation, Ursula Owusu-Ekuful has hinted that plans are underway to introduce a mobile application that will aid self-registration in the ongoing national SIM card registration exercise. According to her, only about two million of the population as of the end of last week have been able to register successfully, a situation she describes as very low. This is due to the number of SIM cards yet to be registered, hence the need for the ‘app’ to facilitate the exercise.
The banking industry is excited about the concept of the e-Cedi or digital cash as 70% of bank executives interviewed are convinced that the use of this form of currency will be prominent within three to five years, the PwC Ghana Banking Survey 2021 has revealed. Such bank executives of 20 out of 23 banks, however, stressed that user experience will be at the core of product acceptance among the public, and drive demand, use, and penetration.
Plans are far advanced for the establishment of a ‘Traders Bank’, President of the Ghana Union of Traders Association (GUTA), Dr. Joseph Obeng, has revealed. He told Joy Business that the specialised bank will deal with the life-long challenge of high interest rates that face Ghana’s informal traders.
Accra court throws out request by italian oil firm to halt process of Unitisation with Springfield.
Inflation to rise in coming months as fuel prices impact in cost of goods and services -Fitch solutions
The World Bank has pledged its commitment to a comprehensive debt solutions for countries with high debt vulnerabilities that do not have the financial resources to respond to the Covid-19 crisis. According to its Country Director, Pierre Laporte, the comprehensive debt solutions will involve four elements- debt suspension, debt reduction, debt resolution, and debt transparency.
Climate change negatively impact rice production in the Ahafo Ano South District of Ashanti Region, Ghana.
The Minister for Finance and Economic Planning, Ken Ofori-Atta is expected to deliver the 2022 budget statement before Parliament on November 15, 2021.
Banks operating in the country held the biggest share of the country’s total domestic debt as of the end of June this year. According to data from the Bank of Ghana, the bank holdings of domestic debt was ¢52.61 billion, about 30.3%. Comparing it to same period last year, banks holdings in the country’s domestic debt dropped marginally. It was estimated at 31% during the same period in 2020.
The Securities and Exchange Commission is urging the public to do a thorough self-assessment of investment firms in the country that may want to introduce or introduce new product onto the market before making a decision to invest. The call follows the growing number of advertised investment products without approval from the Commission.
More Oil Marketing Firms are expected to start adjusting fuel prices at the palms beginning today coming after industry giant Total increase the price of petrol and diesel by a little of 4% to 6 cedis 80ps.
The Ghana National Petroleum Corporation (GNPC) has announced the acquisition of 7% Commercial Interest in both the Jubilee and TEN blocks, from Occidental Petroleum for a purchase price of $199 million, with effect from 1st, April 2021. This is in line with GNPC and Government’s strategy of increasing its participating stakes in viable oil blocks going forward.
The International Monetary Fund has revised Ghana’s growth rate marginally by 0.1% to 4.7% in 2021, signaling the Ghanaian economy is recovering from the impact of Covid-19. This is line with forecast by the World Bank (4.9%) and other renowned international institutions.
Ghana, regarded as one of the largest recipients of Foreign Direct Investment inflows in West Africa registered a 52% decline in FDIs last year, according to the World Bank’s latest 2022 International Debt Statistics.
Communications Minister, Ursula Owusu-Ekuful says her outfit is currently assessing calls for the inclusion of National Passport and other forms of identification in the ongoing SIM card re-registration process. According to her, the law within which the exercise is being undertaken specifies the Ghana Card as the sole mode of identification verification.
Ghana’s inflation rate will end this year at 9.8% in line with the Bank of Ghana’s target of 8% +/-2, according to the Africa Pulse Report by the World Bank. The expected 9.8% inflation rate means average change in price of goods and services will be marginal from now till the end of the year. Inflation surged to 9.7% in August 2021 due to increase in food and transport prices.
The two shortlisted bidders for the Ghana Burkina Faso interconnectivity railway project have submitted their final proposal on the over one thousand kilometres project. The two international firms, African Global Group and Frontline Advisors will be competing for the contract which is expected to commence in the first quarter of 2022.
Bank Of Ghana working hard to remove all illegal charges on financial transactions and reduce cost of banking services.
Former Finance Minister Seth Tekper proposes policies and initiatives by government to take care of unexpected shocks including flatulating commodities price.
Tourist arrivals into Ghana is expected to grow by 47% this year, following easing of Covid-19 restrictions, a report by Fitch Solutions, has revealed.
The Ghana cedi will record relative stability to the dollar for the last quarter of this year, despite expected pressures during the Christmas period whereby traders will be importing goods to sell. This is due to the expected $1.5 billion Cocoa Syndication loan in which $750 million is expected to hit the account of the Bank of Ghana this week.
Former Finance Minister, Seth Tekper says the Bank of Ghana cannot be blamed for the high lending rates in the country, but rather government’s excessive borrowing is the cause of the high cost of credit.
Former Finance Minister, Seth Tekper says the Bank of Ghana cannot be blamed for the high lending rates in the country, but rather government’s excessive borrowing is the cause of the high cost of credit.
The Bank of Ghana spent ¢337.5 million last year in printing currency notes, its 2020 Annual Report has revealed. This is compared with ¢306.2 million the previous year. According to the report, the Central Bank also spent ¢7.9 million in 2020 on other currency management operations, as against ¢3.9 million in 2019.
MPA projects a marginal drop in petroleum price indicators for next price window a move that will trigger price reduction in the next review
Each Ghanaian expected to pay a little above 109K cedis if 335 billion cedis public debt is shared among a population of 30.8 million.
Chartered Institute Of Credit management charges boss and executives of financial institution to give credit professional independent to work freely to avoid creation of bad laws
Ghana Cocoa Board (COCOBOD) will later today sign a $1.5 billion Syndication Loan for the 2021/2022 cocoa crop season. The facility, which is the largest deal in sub-Saharan Africa, will be used to finance cocoa purchases and related operational activities in the crop season.
Ghana Cocoa Board (COCOBOD) will later today sign a $1.5 billion Syndication Loan for the 2021/2022 cocoa crop season.
Bank Of Ghana promises to deal with commercial banks flouting directives and abolishing some charges dimmed illegal
The Ghana Revenue Authority (GRA) said to name and shame tax defaulters as part of several measures to improve compliance.
The 2nd Mini Clinic of the 2021 Ecobank JoyNews Habitat Fair that will create a platform for consumers to connect to their dream homes, comes off at the West Hills Mall today, 18th September, 2021.
Economist, Professor Peter Quartey has described the second quarter Gross Domestic Product (GDP) growth rate estimates as encouraging and demonstrating signs of sustained economic recovery.
President Akufo-Addo has charged the Ministry for Railway Development and the Finance Ministry to fast-track the completion of railway lines along the eastern and western corridors to aid bauxite mining and accrue more earnings for the country.
Trader Minister, Alan Kyerematen calls on US government to begin negotiation with Ghana and the rest of Africa on Post African Growth an opportunity act programs and others to ensure the country benefit significantly from US trade.
After a lengthy discussion with 26 shipping lines that participated in the 2021/22 cocoa freight negotiations with the Cocoa Marketing Company and the Ghana Shippers Authority, the rate of freight for shipment of Cocoa will see an upward adjustment of 5% for the next cocoa crop season.
All is set for the first mini clinic of the 2021 Ecobank JoyNews Habitat Fair at the Achimota Retail Centre this weekend.
The Peasant Farmers Association is backing Former President John Mahama’s assertion that the country may experience a food shortage next year. The former president says this will be due to what he describes as the mismanagement of the Planting foods and jobs program, whilst the Peasant Farmers Association is attributing it to challenges with accessing fertilizers primarily.