News Guide Africa

Category: Economy and Finance

  • The “Kombat Effect”: Tema Oil Refinery shows signs of life under new leadership

    The “Kombat Effect”: Tema Oil Refinery shows signs of life under new leadership

    After more than a decade plagued by crippling debt, operational shutdowns, and mounting public skepticism, Ghana’s only state-owned refinery is showing initial signs of a turnaround under newly appointed leadership.

    The Tema Oil Refinery (TOR), long viewed as a distressed asset burdening public finances, has entered a new phase following the appointment of Mr. Edmund Kombat (Esq.) as Managing Director by President John Dramani Mahama in 2025. Industry observers and internal staff have dubbed the ongoing turnaround effort the “Kombat Effect” a strategy focused on restarting core technical operations, restructuring legacy debt, and rebuilding confidence in the country’s strategic energy infrastructure.

    A Decade of Distressed Operations

    Prior to the recent leadership transition, TOR faced a severe crisis, burdened by legacy debts exceeding US$400 million, a non-functional Crude Distillation Unit (CDU), and prolonged reliance on imported finished petroleum products. Reputational hits, including high-profile controversies like the Asante Berko case, further eroded investor trust and reduced employee morale.

    Addressing the scale of the challenge, Emmanuel Duah, Executive Director of the Radiant Media and Intelligence Hub, noted that the state asset was dangerously close to total failure before the recent intervention.

    “For more than a decade, TOR was widely described as a white elephant due to mounting challenges, including a debt burden exceeding US$400 million, operational difficulties, and repeated government interventions,” Duah stated in a press release analyzing the refinery’s transition. “Allowing TOR to collapse would leave Ghana completely dependent on imported petroleum products, creating significant vulnerabilities.”

     

    Key Operational and Financial Initiatives

    Under the new management direction, the refinery is advancing several key initiatives aimed at restoring technical capacity and operational viability:

    ● CDU Restoration & Tolling Models: Engineering work is underway to rehabilitate the primary Crude Distillation Unit while exploring tolling agreements with third parties to process crude without requiring immediate capital outlay for raw materials.

    ● Debt Restructuring: Management is engaging creditors and state agencies to isolate legacy liabilities from current balance sheets, establishing a viable financial foundation for future operations.

    ● Public-Private Partnerships: Discussions are active regarding prospective lease models or joint ventures aimed at injecting fresh private capital and modern refining technology without relinquishing state ownership.

    ● Internal Accountability: Measures are being implemented to improve transparency, re-engage skilled technical personnel, and rebuild workplace morale.

    Highlighting the strategy, Duah emphasized that the new administrative approach centers on three core pillars.

    “Upon assuming office, Mr. Edmund Kombat outlined a clear vision built around three priorities: Restart, Restructure, and Restore Confidence,” Duah observed. “The ‘Kombat Effect’ demonstrates that with effective management, strategic planning, and the necessary political commitment, even distressed national assets can be restored.”

     

    Energy Security and Economic Impact

    Sector analysts emphasize that a functional refining facility is critical for national economic stability, particularly in mitigating foreign exchange pressure caused by petroleum imports and shielding the local market from global supply chain shocks.

    A fully operational facility is expected to preserve direct technical jobs, support downstream petroleum businesses, and reduce reliance on imported refined products.

    However, significant hurdles remain before full operational capacity can be achieved. Key risks include securing the substantial capital required for full technical upgrades, resolving long-standing creditor claims, and ensuring sustainable crude oil supply agreements.

    “The resurgence of the Tema Oil Refinery does not mean all challenges have been resolved,” Duah warned. “Major issues requiring attention include legacy debt, significant investment needed for CDU rehabilitation, and maintaining strong accountability measures to prevent past missteps. TOR is not merely a refinery; it is a national strategic asset.”

     

    The coming months will test whether the preliminary technical and administrative progress can translate into sustained commercial refining operations at Tema.

     

  • BoG cracks down on illegal digital lenders …Blacklists 20 unlicensed mobile loan Apps

    BoG cracks down on illegal digital lenders …Blacklists 20 unlicensed mobile loan Apps

    In a decisive move aimed at safeguarding consumers and protecting the integrity of the nation’s financial sector, the Bank of Ghana (BoG) has issued a stern warning to the public against engaging with unlicensed digital lending platforms, officially blacklisting unauthorized mobile loan applications operating within the country.

    The central bank confirmed that the illegal platforms operate in direct violation of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930).

    According to regulatory authorities, these unauthorized operators exploit desperate borrowers by charging exorbitant interest rates, imposing hidden fees, and resorting to aggressive debt-collection practices that violate basic human rights and data privacy standards.

    Regulatory Warning

    In an official public notice released by the regulator, the central bank cautioned citizens against the severe risks associated with patronizing unregistered micro-lenders.

    “The persistent operation of unlicensed entities engaged in providing loans through mobile applications to the Ghanaian public is in direct contravention of Act 930,” the Bank of Ghana stated. “The activities of these entities significantly breach customer data and privacy laws, as well as consumer protection requirements, with unfavourable implications for the integrity and well-being of their patrons.”

     

    The central bank further instructed regulated financial institutions, payment service providers, and telecommunication networks to block access to these illegal operators immediately.

    “Banks, Specialised Deposit-Taking Institutions, and Payment Service Providers are strictly cautioned not to facilitate the illegal transactions of unlicensed loan applications,” the statement added.

     

    Public Reaction and Victims’ Experiences

    The crackdown comes following widespread public outcry regarding abusive debt-recovery tactics employed by predatory loan app operators. Many victims reported that after defaulting on short-term loans, these applications accessed their phone contacts without permission to send defamatory messages to family, friends, and employers.

    Kofi Mensah, a small business owner in Accra who fell victim to an illegal lending app, shared his ordeal:

    “I borrowed GH¢500 to restock my shop when business was slow. Within a week, the interest skyrocketed, and when I couldn’t pay immediately, they harvested all my phone contacts and sent text messages calling me a thief to everyone I knew,” Mensah said. “The central bank’s intervention is long overdue. These apps destroy lives and reputations overnight.”

     

    Financial analysts have also commended the regulator’s stance, emphasizing the need for stricter digital surveillance to prevent unverified financial apps from appearing on mobile app stores.

    Cybersecurity specialist and financial analyst Dr. Samuel Baidoo welcomed the crackdown but urged further collaboration with international technology giants:

    “Blacklisting these apps is a positive step toward consumer protection, but enforcement must be continuous,” Dr. Baidoo noted. “The BoG must partner closely with Google, Apple, and local telecommunication providers to ensure these illegal platforms are systematically removed from app stores and blocked from processing mobile money transfers.”

     

    Safe Alternatives for Borrowers

    The Bank of Ghana reiterated that legitimate digital credit services remain available through accredited financial institutions and authorized mobile network operators. Members of the public are strongly advised to verify the licensing status of any financial service provider on the central bank’s official website before initiating financial transactions or granting applications permission to access personal mobile data.

     

  • Flawed Leases, Missing 10%: How Ghana’s mining deals bypass oversight

    Flawed Leases, Missing 10%: How Ghana’s mining deals bypass oversight

    By Adnan Adams Mohammed

     

    Behind closed doors in Parliament, six major mining leases were quietly pushed through to ratification.

    On paper, the multi-million-dollar deals involving global and local giants, including Golden Star (Wassa) Limited, Perseus Mining, Maripoma Mining Services, and Damang Gold Mine, promise national revenue and job creation. Beneath the surface, an investigative trail reveals systemic oversights, missing mandatory state shares, and questions over who is safeguarding Ghana’s mineral wealth.

    The approvals come at a time of growing public demand for resource transparency. Yet, critical documentation reviewed during the ratification process suggests the state’s regulatory apparatus failed to perform basic, legally required due diligence before putting the nation’s assets on the block.

    The Missing 10 Percent

    Under Ghanaian law, the state is automatically entitled to a mandatory 10 percent free-carried interest in all commercial mining ventures, a non-negotiable stake intended to ensure the public directly benefits from the extraction of its gold reserves.

    However, an analysis of the ratified lease packages reveals that this statutory guarantee was mysteriously omitted from several finalized agreements presented to lawmakers.

    Exposing the discrepancy at a press briefing in Parliament, Kwaku Ampratwum-Sarpong, Ranking Member on the Lands and Natural Resources Committee, pointed directly to regulatory failure at the highest level.

    “Perhaps more troubling was the omission in several leases of the Republic of Ghana’s statutory 10% free carried interest,” Ampratwum-Sarpong stated. “That interest belongs to the people of Ghana. It is neither optional nor discretionary and cannot simply be omitted from mining agreements placed before Parliament for ratification.”

     

    The omission raises serious questions about who stood to gain from unallocated equity, and why the state’s key monitoring agency failed to catch the error before submitting the documents to cabinet and Parliament.

    Operational Blindspots and ‘Shoddy’ Due Diligence

    The regulatory lapses extend beyond revenue. In multiple instances, mining firms were granted Parliament’s seal of approval without attaching mandatory environmental impact analyses or operational programs, the foundational blueprints that detail how land will be exploited, restored, and protected.

    Despite these gaps, the Parliamentary Committee on Lands and Natural Resources approved the Minerals Commission’s vetting, relying on boilerplate assurances of corporate compliance.

    “The lease agreements made express provisions prohibiting the companies from conducting any operations within 100 metres of any forest reserve, river, stream, building, installation, reservoir, dam, public road, railway or area appropriated for a railway without prior written authorization,” the Committee claimed in its official presentation, maintaining that standard entry permits would safeguard ecological zones.

     

    Critics, however, view these clauses as regulatory theater that shifts the burden of proof after contracts are already signed. Opposing lawmakers argue that certifying leases without complete technical filings strips Parliament of its constitutional duty to hold exploiters accountable.

    “The agreements contain significant inconsistencies and legal defects that should have been identified and corrected before they were presented to Parliament,” Ampratwum-Sarpong urged. “Parliament cannot compromise the national interest by approving defective mining leases involving Ghana’s mineral wealth without the level of scrutiny that the Constitution demands. It appears the Minerals Commission did a shoddy job and exercised poor diligence in ensuring that the lease documents were in proper conformity with the law.”

     

    Demands for Accountability

    The rushed ratification of the six agreements has triggered calls for an independent audit of the Minerals Commission’s entire leasing framework.

    Governance experts and opposition MPs are demanding to know why state negotiators routinely settle for the bare legal minimum, or less, rather than pushing for higher equity returns, such as negotiating up to a 30% state stake in legacy concessions like the Damang Gold Mine.

    With the deals now legally ratified, civil society groups and accountability advocates are preparing to challenge the review process, warning that allowing flawed lease pipelines to operate unchecked compromises Ghana’s sovereignty over its natural resources for decades to come.

     

  • COCOBOD kicks off nationwide engagements on landmark Cocoa Board Bill 2026

    COCOBOD kicks off nationwide engagements on landmark Cocoa Board Bill 2026

    The Ghana Cocoa Board (COCOBOD) has launched a nationwide stakeholder engagement series to unpack the newly passed Ghana Cocoa Board Bill, 2026, opening the dialogue with key industry actors at Cocoa House in Accra on Tuesday.

    The maiden session brought together leaders from cocoa farmer-based organisations, civil society groups, and the Licensed Cocoa Buyers Association of Ghana (LICOBAG). Led by COCOBOD Chief Executive Dr. Randy Abbey and members of management, the meeting focused on the law’s expanded regulatory oversight, revised financing policies, and an updated producer pricing framework.

    Addressing delegates during the opening session, Dr. Randy Abbey emphasized that the legislation marks a structural shift aimed at securing the long-term viability of Ghana’s cocoa economy while placing farmers at the center of governance.

    “The Ghana Cocoa Board Bill, 2026 is not merely a legal document; it is a blueprint for the modernization and sustainability of our cocoa sector,” Dr. Abbey stated. “Our objective with this nationwide exercise is to ensure that every stakeholder from our buying companies to the farmer in the village—understands their rights, responsibilities, and the protection this new framework guarantees.”

    Key focus areas of the discussions included farm protection mechanisms, enhanced supply chain traceability, updated licensing requirements, and the operational rollout of the Cocoa Farmer Pension Scheme.

    Reacting to the presentation, representatives of LICOBAG welcomed the statutory updates regarding financing and licensing, noting that clarity on regulatory oversight will boost confidence among operational buyers.

    “Clear rules of engagement benefit the entire value chain,” said a spokesperson for LICOBAG. “The detailed discussions on financing policy and licensing give licensed buyers a clearer roadmap for operations while aligning our practices with global traceability standards.”

    Farmer-based organizations also expressed optimism regarding the bill’s provisions on price stabilization and pension security, while stressing the need for continuous education as the law takes effect.

    “Our main priority has always been fair pricing, farm protection, and a dignified retirement for our farmers,” noted a senior representative from the cocoa farmer associations present. “Seeing these protections embedded in the legal framework gives us confidence, but the real work lies in ensuring these policies translate directly into the livelihoods of local farm communities.”

    Following the initial dialogue in Accra, COCOBOD announced that the consultation series will cascade to regional, district, and local cocoa society levels across the country to build widespread understanding and ensure smooth implementation.

     

     

  • ADB Marks Strong Half-Year Performance With Health Walk and Fun Games

    ADB Marks Strong Half-Year Performance With Health Walk and Fun Games

    Agricultural Development Bank PLC (ADB) has celebrated another significant milestone in its transformation journey by combining the announcement of its impressive half-year financial performance with its second Health Walk and Annual Team Bonding Games, reinforcing the Bank’s commitment to both business excellence and employee wellbeing.

    The event brought together Management and staff ADB, customers, captains of industry, and other stakeholders in a show of unity, wellness and teamwork, reflecting ADB’s belief that a healthy, motivated workforce and partnerships are central to sustaining exceptional business performance.

    Addressing participants, the Managing Director of ADB, Edward Ato Sarpong, expressed profound appreciation to customers, employees, shareholders and all stakeholders whose confidence and commitment have underpinned the Bank’s remarkable turnaround over the past eighteen months.

    “Our half-year results are a testament to our collective progress and the consolidation of the modest gains we have made together,” he said. “These achievements belong not only to ADB, but to every customer who has entrusted us with their business, every member of staff whose dedication continues to drive our success, every shareholder who has stood by us, and every stakeholder who believes in our vision,” Mr Sarpong added.

    The Bank delivered another strong financial performance during the first half of 2026 despite operating in a declining interest rate environment. Profit before tax reached GH¢294 million, propelling ADB to become the 11th most profitable bank in Ghana, a remarkable achievement considering the Bank’s position at the beginning of 2025.

    ADB also recorded outstanding growth across its key performance indicators. Total assets increased by 33% to GH¢19.5 billion, customer deposits rose by 23% to GH¢14.9 billion, while shareholders’ funds strengthened by approximately GH¢1.1 billion to close the period at GH¢2.6 billion.

    The Bank maintained a strong liquidity position throughout the period and posted a robust Capital Adequacy Ratio of 26.94 percent, demonstrating prudent financial management and continued compliance with regulatory requirements.

    The ADB MD also paid glowing tribute to the Bank’s workforce for their professionalism, resilience and unwavering commitment to delivering excellent customer service.

    “To our dedicated pool of talents, I commend your professionalism, resilience and unwavering commitment to excellence. Your passion for service and determination to exceed expectations continue to drive the Bank’s transformation and position ADB as a stronger, more competitive institution,” he stated.

    He further thanked everyone for making the Health Walk and Annual Team Bonding Games a resounding success, noting that initiatives promoting employee wellness, collaboration and team spirit remain essential to building a high-performing institution capable of delivering sustainable value to customers and shareholders alike.

    As ADB continues its transformation journey, the Bank remains focused on deepening customer service experience and service excellence, strengthening its market position and delivering innovative financial solutions that contribute meaningfully to wealth creation and national development.

     

    With strong financial fundamentals, a motivated workforce and growing public confidence, ADB is well positioned to build on its momentum and continue creating lasting value for customers, shareholders and the nation far beyond banking.

     

  • Cybercrime risk signals need for stronger digital security investments in African fintech

    Cybercrime risk signals need for stronger digital security investments in African fintech

    By Adnan Adams Mohammed

    Rising cyber threats powered by artificial intelligence and expanding mobile money fraud are highlighting the need for stronger security infrastructure across Africa’s financial and telecommunications sectors.

    According to the newly released African Cyberthreat Assessment Report 2026 by INTERPOL, artificial intelligence is now utilized in 55 percent of all reported cybercrimes across the continent.

    The integration of AI technologies has enabled cybercriminals to deploy faster, automated, and highly sophisticated attacks, contributing to total reported financial losses more than doubling from $192 million in 2024 to $484 million in 2025.

    The escalation of digital fraud presents both operational risks and strategic capital opportunities for institutional investors, venture capital funds, and technology providers active in emerging markets.

    Neal Jetton, Cybercrime Director at INTERPOL, emphasized the systemic challenge posed by these rapidly shifting risks.

    “This edition of the INTERPOL African Cyberthreat Assessment paints a clear picture of a threat landscape in flux, with emerging dangers like AI-driven fraud that demand urgent attention,” Jetton noted. “No single agency or country can face these challenges alone.”

     

    A key driver of this expanding attack surface is Africa’s rapid digital adoption, with mobile subscribers surpassing 1.1 billion in 2025. However, security gaps in mobile money ecosystems and commercial platforms continue to leave consumers and businesses vulnerable to phishing, credential harvesting, and identity manipulation.

    In West Africa, where mobile money penetration remains central to financial inclusion, fraud schemes continue to impact transaction volumes and market trust. Simultaneously, INTERPOL found that 72 percent of surveyed countries reported the presence of organized criminal scam centers, with heavy concentrations located in West and Southern Africa.

    Ambassador Jalel Chelba, Acting Executive Director of AFRIPOL, highlighted the broader economic implications of cyber vulnerability for regional growth and investor confidence.

    “Cybersecurity is not merely a technical issue; it has become a fundamental pillar of stability, peace, and sustainable development in Africa,” Chelba stated. “It directly concerns the digital sovereignty of states, the resilience of our institutions, citizen trust, and the proper functioning of our economies.”

     

    With 90 percent of African member states indicating a need for substantial upgrades in threat intelligence, incident reporting systems, and prosecution capabilities, market analysts anticipate increased capital allocation toward private-sector cybersecurity ventures, real-time threat detection technologies, and institutional compliance frameworks.

     

  • Taxpayers bear the burden as state support for ECG reaches GH₵38bn

    Taxpayers bear the burden as state support for ECG reaches GH₵38bn

    By Adnan Adams Mohammed

     

    State support for the Electricity Company of Ghana (ECG) has reached nearly GH₵38 billion over a two-year period, shifting a massive financial burden onto Ghanaian taxpayers to keep the state power distributor afloat amid persistent operational deficits.

    Newly published 2025 audited financial statements show that while ECG reported a reduced post-tax loss of GH₵2.52 billion down from GH₵8.26 billion in 2024 the apparent recovery was heavily sustained by direct government intervention and favorable foreign exchange movements rather than operational improvements.

    In 2024, the government provided ECG with a grant of GH₵17.03 billion, booked directly as income. In 2025, the state stepped in again, paying GH₵20.86 billion directly to independent power producers (IPPs) and fuel suppliers on ECG’s behalf. Unlike the previous year’s grant, the 2025 payment has been recorded as a loan that ECG is required to repay to the central government.

    Commenting on the fiscal toll of these interventions, financial analyst Alfred Appiah highlighted the opportunity cost of continuously funding the utility’s shortfalls.

    “It’s nearly 38 billion cedis of state support across two years money from the Consolidated Fundrrts that could have gone to classrooms, roads, clinics, and sanitation systems,” Appiah stated. “Every cedi that covers ECG’s shortfall is a cedi not spent somewhere else.”

     

    The underlying financial health of the power distributor remains fragile. ECG recorded an operating loss of GH₵14.35 billion in 2025, with gross losses standing at GH₵12.66 billion as cost of sales (GH₵34.77 billion) significantly outpaced revenue (GH₵22.11 billion). The reported loss was only contained due to a GH₵12.16 billion foreign exchange gain resulting from cedi performance, given that ECG purchases power denominated in U.S. dollars but collects revenue in local currency.

    Efficiency metrics show little sign of structural recovery. Distribution losses rose slightly from 26.88% in 2024 to 27.05% in 2025, reflecting unaddressed technical and commercial leaks in the distribution grid.

    “This is why efficiency at ECG is not a technical concern; it is a fiscal one,” Appiah emphasized. “Strip out forex movements and government support and nothing has changed. ECG loses roughly 15 billion cedis a year from its core operations. Until the losses come down and collections improve, the bailouts continue, and taxpayers shoulder the burden.”

     

    With total comprehensive losses reaching GH₵4.90 billion for 2025 and total equity standing at GH₵438 million, pressure is mounting on state authorities to enforce structural reforms at ECG to prevent further drain on public funds.

     

  • COCOBOD reforms strengthen Ghana’s cocoa value chain and derisk agricultural investment

    COCOBOD reforms strengthen Ghana’s cocoa value chain and derisk agricultural investment

    By Adnan Adams Mohammed

     

    Parliament’s passage of the revised Ghana Cocoa Board (COCOBOD) Act has delivered a significant boost to investor confidence, establishing stronger regulatory enforcement and statutory asset protections designed to stabilize supply chains, protect capital, and safeguard market integrity.

    The modernized framework addresses critical supply-side risks by introducing severe criminal penalties for smuggling, unlicensed purchasing, and quality tampering, while granting inspectors broad powers of entry, search, and seizure.

    By curtailing leakage into informal and cross-border channels, the legislation reinforces transparency and predictability for domestic and international stakeholders across the cocoa value chain.

    “For institutional investors and off-takers, regulatory certainty and supply chain integrity are non-negotiable,” said Dr Randy Abbey, COCOBOD Chief Executive in an interview following the bill’s passage. “This law arms our enforcement officers with the statutory teeth required to enter suspicious premises, seize illegal consignments, and eliminate grey-market arbitrage that distorts fair valuation.”

    Beyond anti-smuggling directives, the law addresses long-standing agricultural vulnerabilities by officially designating all cocoa farms as “protected economic assets.” This title creates a strict legal framework governing land use and sets binding regulations for mandatory compensation when cocoa trees are destroyed, damaged, or affected by infrastructural developments, mining activities, or disease eradication programs.

    “Cocoa farmers have historically borne the brunt of land encroachment and arbitrary destruction of their crops without prompt or adequate restitution,” noted Nana Osei Bonsu, President of the National Cocoa Farmers Association. “By designating our farms as protected lands, Parliament has finally given us a legal shield. The clear compensation rules ensure that no farmer will be left destitute if their trees are impacted.”

    Industry analysts expect the legislation to stabilize the domestic supply chain, safeguard the international reputation of Ghana’s premium cocoa beans, and deter illicit cross-border syndicates.

    “This is not merely a regulatory update; it is an economic defense measure,” explained Dr. Evelyn Mensah, a senior agricultural economist at the University of Ghana. “By securing quality compliance and protecting the primary producer, the law reinforces the integrity of the entire value chain.”

     

    The Ministry of Finance and COCOBOD are expected to roll out nationwide sensitization campaigns in the coming weeks to educate farming communities, licensed buying companies, and local task forces on the new provisions before full operational enforcement begins.

     

  • NPA to absorb GH₵2 per litre of diesel following presidential directive

    NPA to absorb GH₵2 per litre of diesel following presidential directive

    President John Dramani Mahama has directed the National Petroleum Authority (NPA) to take steps to absorb GH₵2 on every litre of diesel to cushion consumers against recent increases in petroleum prices.

    The state intervention aims to mitigate the growing financial pressure on Ghanaian households, commercial transport operators, and businesses that depend heavily on diesel for their daily operations.

    The directive was disclosed on Monday by the Chief Executive Officer of the National Petroleum Commission, Edudzi Tamakloe.

    “President John Dramani Mahama has directed that the NPA takes steps to absorb GH₵2 on every liter of diesel to cushion the impact of recent fuel price increases,” Tamakloe announced in a social media update.

     

    Highlighting the intention behind the executive order, Tamakloe described the directive as a direct measure to protect citizens from escalating living costs.

    “This is a further demonstration of the President’s care for the ordinary citizen,” Tamakloe stated.

     

    The government intervention comes following weeks of rising global crude prices and local market adjustments that have pushed up pump prices across the country, prompting calls from transport unions and industry stakeholders for state relief.