News Guide Africa

Category: News

  • Day-old Mahama govt saves Ghanaians from imminent load shedding 

    President John Mahama and Julius Debrah

     

     

    Adnan Adams Mohammed

     

    The day-old John Mahama administration has swiftly worked to avert an imminent power crisis it inherited from the NPP administration.

     

    A committee led by Julius Debrah, Chief of Staff, has managed to purchase emergency fuel from Nigeria and others in replace of gas supply cut from the West African Gas Pipeline Company Limited (WAPCo) due to a planned maintenance scheduled to take place from January 20 to February 16, 2025.

     

    It was estimated by the Ghana Grid Company Limited (GRIDCo) that, about US$ 89 million will be needed to to buy liquid fuel to replace the gas cut to all power generation plants in the Tema enclave.

     

    “A total of US$ 89.90 million is required to purchase liquid fuel to run thermal plants in order to meet demand for the period”, a GRIDCo report titled, “Power Supply Outlook For The WAGP Offshore Pigging From January 20 – February 16, 2025 And Projections For 2025”  stated. “System demand is projected to grow steadily to an annual peak of 4,415.42MW by the last quarter of 2025.”

     

    The report revealed that, the planned maintenance which was initially scheduled to take place in October 2024, but the immediate past NPP government coerced the company to postpone the exercise to this year.

     

    “This maintenance was originally scheduled for October 2024 but had to be rescheduled at the request of the Ministry of Energy”, the report noted.

     

    This is expected to affect gas supply to power generation plants, basically in Tema enclaves. It is expected that, there will be deficit in generation capacity during the period of the WAPCO pigging exercise. There is therefore the need to procure liquid fuel to run thermal plants in Tema to meet demand.

     

    It further indicated that, “There will accordingly be the need to secure additional generation resources with dependable capacity of at least 244.66 MW by the last quarter of the year to ensure sustained supply adequacy by the end of the year.”

     

    This is likely to resort in load shedding in days to come.

     

  • Pension payments increased by 12% for 2025


    The Social Security and National Insurance Trust (SSNIT) has increased monthly pension payments by 12% for the year 2025.

    This decision, made in consultation with the National Pensions Regulatory Authority (NPRA), aligns with Section 80 of the National Pensions Act, 2008 (Act 766).

    The 12% increase will be applied to all pensioners on the SSNIT payroll as of December 31, 2024. It comprises a fixed rate of 8% and a flat amount of GH¢72.58. This flat amount represents the remaining 4% of the increase, which is redistributed to ensure a more equitable distribution of benefits among pensioners.

    “Redistribution is a mechanism applied to the indexation rate to cushion low-earning pensioners in conformity with the solidarity principle of social security,” stated SSNIT in a press release.

    This mechanism ensures that lower-income pensioners receive a more significant increase in their benefits.

    As a result, the minimum monthly pension will increase from GH¢300 in 2024 to GH¢396.58 in 2025, representing an effective increase of 32.19%.

    This pension adjustment is expected to provide much-needed relief to pensioners facing rising living costs.

     

     

  • Postponed WAPCO maintainance to cause load shedding… as US$89mn needed to purchase liquid fuel to run thermal plants

    ECG and GRIDCo logo

     

     

     

    Adnan Adams Mohammed

     

    The West African Gas Pipeline Company Limited (WAPCO) has indicated it will soon undertake planned maintenance termed as ‘pigging’ (cleaning) exercise offshore from January 20 to February Febr 16, 2025.

    WAPCO logo

    Ghana GRID Company Limited in a document titled, “Power Supply Outlook For The WAGP Offshore Pigging From

    January 20 – February 16, 2025 And Projections For 2025 revealed that, the planned maintenance which was initially scheduled to take place in October 2024, but the immediate past NPP government coerced the company to postpone the exercise to this year.

     

    This is expected to affect gas supply to power generation plants, basically in Tema enclaves. It is expected that, there will be deficit in generation capacity during the period of the WAPCO pigging exercise. There is therefore the need to procure liquid fuel to run thermal plants in Tema to meet demand.

     

    “A total of US$ 89.90 million is required to purchase liquid fuel to run thermal plants in order to meet demand for the period”, the GRIDCo document stated. “System demand is projected to grow steadily to an annual peak of 4,415.42MW by the last quarter of 2025.”

     

    It further indicated that, “There will accordingly be the need to secure additional generation resources with dependable capacity of at least 244.66 MW by the last quarter of the year to ensure sustained supply adequacy by the end of the year.”

     

    This is likely to resort in load shedding in days to come.

     

  • Confirmed: Julius Debrah named Chief of Staff in Mahama’s first appointment 

    President John Mahama and his Chief of Staff Julius Debrah

    President-elect, His Excellency John Dramani Mahama, has confirmed the appointment of Julius Debrah as his Chief of Staff.

    The appointment was contained a press statement which announced six others as senior presidential staffers.

     

    Read below Press Statement:

    OFFICE OF HE JOHN DRAMANI MAHAMA

    PRESIDENT-ELECT OF THE REPUBLIC OF GHANA

    Monday, January 06, 2025.

    FOR IMMEDIATE RELEASE

    President-elect makes appointments to the Office of the President

    The President-elect, His Excellency John Dramani Mahama, has made the following appointments to the Office of the President.

    1. Julius Debrah-Chief of Staff

    2. Dr. Callistus Mahama – Executive Secretary to the President.

    3. Prosper Douglas Bani – Head of Interim Security Taskforce

    4. Dr. Valerie Sawyerr – Senior Presidential Advisor, Governmental Affairs.

    5. Augustus Goosie Tannoh-Presidential Advisor Responsible for 24-hour Economy and Accelerated Export Development.

    6. Marietta Agyeiwaa Brew-Legal Counsel to the President of Ghana.

    7. Hon. Felix Kwakye Ofosu-Ag. Spokesperson to the President

    These appointments take effect from Tuesday, January 7th, 2025.

    SIGNED

    Felix Kwakye Ofosu

    Special Aide

  • My govt will honour Eurobond holders with $346m – Akufo-Addo

    President Nana Addo Dankwa Akufo-Addo

    President Nana Addo Dankwa Akufo-Addo has announced that the government will pay $346 million to Eurobond holders, effective January 3, 2025.

    The President emphasized the government’s commitment to honoring its financial obligations and avoiding any defaults on debt repayments. He stressed the significance of maintaining the country’s credibility and financial stability through these timely payments.

    Delivering his final State of the Nation Address (SONA), last week, President Akufo-Addo said, “I am happy to inform the House that today, 3rd January 2025, my government will honour coupon payments to our Eurobond holders amounting to three hundred forty-six million US dollars ($346 million). We cannot afford to default on our debt repayments.”

    The government of Ghana on June 24, 2024, reached an agreement in principle with the Committee of holders of its Eurobonds on a restructuring of its debt in a step towards the country’s economic recovery.

    The agreement was expected to offer significant cash flow and debt stock relief to help Ghana’s economic recovery in line with the International Monetary Fund-financed programme.

    The Committee, representing the bondholders, reaffirmed its support for Ghana’s dedication to sustainable economic policies, intended to strengthen macroeconomic stability, enhance investor confidence, and institutionalize fiscal credibility.

     

     

     

     

  • Mahama outlines his vision for a lean and efficient gov’t in New Year message

    President Elect

    President-elect, John Dramani Mahama, has outlined his vision for his second term administration in his New Year message.

    He emphasized the need for a lean and efficient government that can effectively serve the needs of the Ghanaian people.

    Guided by the past where successive governments have often been criticized for its inefficiencies and wastage of resources, Mahama acknowledged that these issues must be addressed if Ghana is to achieve its full potential and ensure sustainable development.

    To achieve this, Mahama pledged to prioritize good governance and transparency, ensuring that government policies and programs are effective and efficient.

    He also emphasized the importance of creating a more agile and responsive government that can adapt quickly to changing circumstances. He vowed to streamline government operations, eliminating unnecessary bureaucracy and duplication of effort. This, he believes, will enable government to focus on its core functions and deliver services more effectively.

    The President-elect also touched on the need for government to work closely with civil society organizations, the private sector, and the international community to achieve common goals. He stressed the importance of building strong partnerships and coalitions to tackle the country’s pressing challenges, such as poverty, inequality, and climate change.

    Overall, Mahama’s New Year message highlights his commitment to building a more efficient and effective government that serves the needs of all Ghanaians.

     

     

  • NHIA clears all outstanding claims upto November 2024…as it GH¢270mn to service providers

    The National Health Insurance Authority (NHIA) has successfully disbursed GH¢270 million to healthcare providers across Ghana to cover claims submitted up to October and part of November 2024.

    The Authority in a statement issued last week, stated that the timely payment will ensure that it remains within the agreed-upon three-month reimbursement period and currently has no outstanding vetted claims to pay.

    This latest disbursement brings the total amount released by the NHIA over the past four months to over GH¢1.2 billion, demonstrating the Authority’s commitment to supporting healthcare providers.

    The prompt payment regime, introduced earlier in 2024, has played a crucial role in maintaining a debt-free status and ensuring timely reimbursements to healthcare providers nationwide.

    The NHIA further encouraged healthcare facilities to submit their claims promptly, to ensure that claims do not exceed the 90-day submission window. ”This timely submission facilitates efficient processing and ensures timely reimbursement.”

    In addition to this recent payment, the NHIA has made significant disbursements in recent months:

    December 1, 2024: GH¢200 million released for claims covering September and part of October 2024.

    October 9, 2024: Over GH¢335 million released for claims related to August 2024.
    September 2024: GH¢402 million disbursed to cover claims for June and July 2024.

    Dr. Da-Costa Aboagye, Chief Executive of the NHIA, expressed gratitude to healthcare providers for their unwavering dedication and continuous support in providing high-quality healthcare services to Ghanaians.

     

     

  • DDEP was a life-and-death matter for all Ghanaians – Addison

    Dr Ernest Addison

    The Governor of the Bank of Ghana (BoG), Dr. Ernest Addison, has categorically rejected assertions that associate the independence of the Central Bank with the government’s Debt Exchange Programme (DDEP).

    He emphasized that the debt exchange initiative was a direct reaction to a significant national crisis and did not impact the autonomy of the Bank of Ghana.

    “The debt exchange programme has nothing to do with the independence of the central bank,” Dr Addison said during an interview with Joy News’ PM Express Business Edition.

    He characterized the DDEP as a significant national emergency that necessitated an immediate resolution to prevent the nation from facing economic collapse.

    “It was a life-and-death matter for all Ghanaians. At that point, nothing else mattered. Salaries were not going to be paid. There was going to be chaos because nobody was getting their investment returns.”

    Dr. Addison clarified that the Bank of Ghana’s participation in the debt exchange programme was not a reaction to economic shocks but a strategic response.

    He further detailed the sequence of events, indicating that the International Monetary Fund’s recommended approach included the declaration of a debt standstill, which was subsequently succeeded by a debt exchange.

    “The IMF’s approach to the crisis was clear. The Bank of Ghana had to continue financing the government to maintain stability while we worked on the programme.

    “At that point, those holding government instruments were the ones impacted. What happened in October during the debt standstill could have happened much earlier in the year, but it would have been disorderly without the appropriate policies in place. This was the solution given the situation the country found itself in.”

    Dr. Addison also dismissed the notion that the independence of the central bank was undermined during the crisis, emphasizing that its measures were consistent with the IMF’s framework aimed at restoring stability.

    “The recent economic challenges were about survival. Let’s not oversimplify the situation.”

     

  • Bagbin sets record.. as he awaits parliamentary approval as 9th Speaker

    Rt Hon Alban Bagbin, Speaker of Parliament

     

    Adnan Adams Mohammed

    Rt. Hon. Alban Sumana Kingsford Bagbin is about setting another record as the longest serving Speaker of Parliament under the Fourth Republic.

    This comes as he is nominated by President-elect, John Dramani Mahama, as the Speaker for the ninth Parliament.

    John Mahama has, thus, officially mandated the National Democratic Congress (NDC) Parliamentary Leadership to nominate and vote for Rt Hon Bagbin. A statement issued and signed by Special Aide, Felix Kwakye Ofosu noted that the President-elect expressed confidence in Bagbin’s ability to continue steering Parliament effectively.

    “Rt. Hon. Bagbin has distinguished himself in the service of Parliament, rising from Member of Parliament for Nadowli to Minority and Majority leader respectively, and subsequently as Speaker of the 8th Parliament.”

    “He brings a wealth of experience to the position, which will prove vital in steering the affairs of Parliament at this critical period in Ghana’s Democratic and legislative development.”

    According to Mr Mahama, Bagbin’s leadership will be crucial in navigating the current legislative landscape and ensuring the smooth functioning of Parliament.

    “The President-elect is convinced that under the stewardship of The Right Honourable Alban Bagbin, Ghana’s Parliament will be further strengthened to deliver effectively on its oversight responsibility,” the statement read.

    His nomination if approved, will make Rt Hon Bagbin as the only Speaker to serve under an opposition party administration and a second term under his party. Also, he is likely to get a third term, all things being equal.

  • Tullow wins in $320mn arbitration dispute over tax assessment with GRA

    Adnan Adams Mohammed

    Tullow Oil, a key player in Ghana’s oil and gas sector, has won in a $320 million tax dispute case brought forward by Ghana Revenue Authority (GRA) at the International Chamber of Commerce (ICC).

    A statement released by the company last week indicated that, the ICC determined that the Branch Profit Remittance Tax (BPRT) does not apply to Tullow’s operations in Ghana’s Deepwater Tano and West Cape Three Points fields.

    Consequently, Tullow is exempt from the US$320 million BPRT assessment and will not face future BPRT liabilities related to these operations.

    “Tullow is pleased that the  has confirmed our position that the $320 million BPRT assessment issued by the GRA in Ghana was not applicable to our operations,” the company stated. “This ruling brings clarity on the applicability of BPRT to our operations under the relevant Petroleum Agreements and double tax treaties.”

    However, the company emphasized its continued commitment to working with the Government of Ghana to resolve outstanding disputes amicably.

    The arbitration ruling on the BPRT is a setback for Ghana and the GRA, as the decision effectively denies the country $320 million in expected revenue.

    This raises broader questions about the fiscal frameworks governing Ghana’s oil and gas sector, particularly as the government seeks to attract investment while ensuring fair tax compliance.

    Meanwhile, Tullow which has significant investments in the Jubilee and TEN fields expressed relief at the outcome, which it believes upholds its position on the tax assessments.

    The BPRT is a tax on profits that foreign businesses earn within a country and transfer to their parent companies abroad.

    Tullow contested the GRA’s application of this tax, arguing it was inconsistent with the terms of their Petroleum Agreements and existing tax treaties.

    While the ICC ruling is a victory for Tullow, the company is still engaged in arbitration over two additional tax disputes with the GRA. These include the disallowance of loan interest deductions for the fiscal years 2010–2020 and proceeds received under Tullow’s Business Interruption Insurance policy for 2016–2019. The combined disputed amount exceeds $387 million, plus penalties.

    Tullow has stated its intention to resolve these matters through constructive dialogue, with arbitration proceedings ongoing.

    The ICC is the world’s largest business organisation, representing 45 million companies.