Bankers foresee falling Interest Rates
Bankers, under the umbrella of the Ghana Association of Bankers (GAB), are optimistic that cost of funds to the lending public will be moderate in the coming days as the new benchmark interest rate – the Ghana Reference Rate (GRR) – continues to tumble.
After opening at 16.82 per cent in April this year, the GRR, an initiative of the GAB and the Bank of Ghana (BoG), declined to 16.74 percent in May 2018 before sliding further to 16.19 per cent in June this year. As a guide in the determination of lending rates by banks, the Chief Executive Officer of the GAB, D.K. Mensah, said the continuous decline in the GRR “means that interest rates are coming down”. “You know, we have to price our loans around the GRR and the declines mean that r…
Free Zones soon to be more Investor friendly
The Ghana Free Zones Authority says it is in the process of reviewing its regulatory legislation to make it more investor-friendly. A stakeholder meeting is scheduled for Free Zones enterprises to enable them to make their inputs for the proposed amendment.Addressing some Chief Executives of Free Zones enterprises in Kumasi, Chief Executive of the Authority, Micheal Okyere Baafi, says the law in its current form has become outmoded.
The Free Zones Programme is a government policy to promote export-oriented investment. The meeting with the Chief Executives of the Free Zones enterprises was part of a nationwide roadshow by the Authority to discuss issues peculiar to each region.
Mr. Okyere Baafi emphasizes the need to amend the law r…
Economy in much better shape than expected!
Ghana plans to publish overhauled economic data that will show its gross domestic product is bigger than currently estimated. The West African nation will remeasure economic output using 2013 prices instead of 2006 and the basket of activities used to value the economy is being expanded due to new industries that have formed since 2006, Asuo Afram, head of economic statistics at the Ghana Statistical Service. The agency will release the revised GDP and economic growth figures for 2014 to 2017 on May 23 and the data points to a bigger economy than previously estimated, Afram said, declining to give a number because the calculations haven’t been finalised.
The US$ 45bn economy is the seventh biggest in sub-Saharan Afri…
Court Victory over Ivory Coast will result in Billions of Offshore Oil Dollars
Ghana’s “long and arduous journey” to boost offshore oil exploration and extraction will be fuelled with billions of extra dollars after a key court victory over Ivory Coast. Thanks to efforts by successive governments and conquering lawyers at the International Tribunal on the Law of the Sea (ITLOS) over a disputed maritime boundary with Ivory Coast which resulted in a ruling in Ghana’s favour, the money will soon be pouring in.
Ghana has produced oil commercially since 2010, leading to a burst of growth that transformed it into an emerging economy, piquing the interest of global investors. But new exploration and production were halted in 2014 when Ivory Coast said drilling off Ghana’s western coast had strayed into its territory. F…
Foreign Investment and Export Opportunities in Agriculture and Infrastructure
President Nana Addo Dankwa Akufo-Addo has underlined the government’s determination to pursue aggressive modernization of the nation’s agriculture to substantially increase productivity and reduce food import. He said its agenda for the next four years was to transform agriculture by improving production efficiency and ensuring increased returns to the farmer. President Nana Akufo-Addo was performing the ceremony to mark the commencement of work on a 1,000 metric ton capacity warehouse at Ejura in the Ejura-Sekyedumase Municipality. This coincided with the celebration of the 37th World Food Day, which was on the theme “Change the future migration – Invest in food security and rural development”. He said they were eager to provide stora…
Mobile High Tech gives Farmers competitive Edge
When reading on new technologies, mobile IT and Smartphone Apps in Africa, people automatically think of South Africa, maybe Namibia or Nigeria. But let’s have a look at Ghana: Agyei Douglas is a farmer who grows vegetables near Kumasi in Ghana’s central Ashanti region. He used to struggle to access markets and capital. The information he needed was broadcast on the radio but often it wasn’t specific enough to improve his yield of lettuce, spring onions, cabbage and chilli pepper.
Two years ago, the 43-year-old began using Farmerline, which delivers weather updates, the latest market prices and other details to his second generation mobile phone. "It has helped us improve on our productions through the information we get from them, it…
Positive Outlook for improved Credit Rating
Finance Minister Ken Ofori-Atta says he expects Ghana’s credit rating to improve in the next few months. His optimism is based on assurances given to the credit rating agencies that government will be prudent with its expenditure this year, boost revenue and meet most of the macroeconomic targets set out the 2017 budget.
This was after the minister met the rating agencies in Washington DC and New York in the U.S. as part of the Non-deal road show which ended in New York on Wednesday. According to the Finance Minister, the rating agencies have shown signs that are encouraging. “I think that they are seeing an economic team that is capable, that has energy, there is some excitement around it and a commitment that they have not seen befo…
Bonds tumble as Budget Deficit of US$ 1.6bn is discovered
Ghana’s three-week-old government said it found a 7bn-cedi hole in the budget, a disclosure that sent its bonds tumbling. “We have been very surprised by the fiscal data,” Vice President Mahamudu Bawumia said on Tuesday night in a speech broadcast by Citi FM. “We find out that there’s 7bn Ghana cedis of expenditure that have not been disclosed.”
The central bank on January 23 urged the government to narrow the budget deficit after provisional data for January through November showed a shortfall of 7% of gross domestic product, exceeding a forecast of 4.7%. The West African nation will probably miss its fiscal-deficit target for 2016 by more than the government’s forecast because of weak income collection and higher-than-planned capita…
Outlook for Economic Growth reduced to 3.2%
Ghana cut its economic growth forecast for 2016 to less than last year’s level, which was the lowest in more than two decades, as the country reduced its targets for oil and gold production.
West Africa’s largest economy after Nigeria will likely grow 3.2% this year after expanding 3.9% in 2015, the slowest in more than two decades, Finance Minister Seth Terkper said in a statement on the ministry’s website. The ministry previously estimated a 5.4% expansion in 2016. The change in the growth outlook for the year follows a “revision of gold production forecasts for 2016 to 2018 and the shutdown of the FPSO Kwame Nkrumah” oil production vessel on the Jubilee oil field, Terkper said in the statement.
Ghana also revised its fiscal defi…
Blackouts Year Three: Peaceful Demonstrations
Thousands of Ghanaians marched peacefully through parts of the capital Accra to protest the government’s failure to solve a three-year long electric power crisis that has sapped businesses and hindered economic growth. The march, organised by Ghanaian celebrities and artistes, drew a gathering of academics, civil servants and private business people which stretched half a kilometre through the streets of the city’s eastern districts.
The marchers, draped in black and red, held kerosene torches and candles as they chanted anti-government slogans.Among them was a man carrying a table-top refrigerator which he said was damaged by frequent power cuts. Economic growth in Ghana, once a favourite of investors in Africa, has been slowed by fi…