News Guide Africa

Category: News

  • GIZ launches Green Finance Facilitator programme to boost climate-friendly businesses in Ghana

    Green Finance Facilitator (GFF) programme.

     

     

    With the aim of developing bankable green projects and promoting access to sustainable financing for businesses, the German Development Cooperation, through Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, has launched the Green Finance Facilitator (GFF) programme.

     

    The launch event, held in Accra, was themed: Developing a Pipeline of Green Projects in Ghana’.

     

    As Ghana advances towards transitioning to a sustainable, climate-resilient economy, achieving its climate goals requires substantial financial investment.

     

    While $15 billion is needed, only 5% of this target has been secured, creating a significant gap between green finance providers who report a shortage of investable green business proposals, and Ghanaian businesses that often lack the capacity to present green projects meeting the requirements of financial institutions.

     

     

    The Green Finance Facilitator (GFF) programme is designed to address this gap by building a pipeline of bankable and investable green projects.

     

    The programme will support the increased scale and pace of green investments in Ghana by offering customised technical assistance and business advisory services through top-tier local partners. Supported businesses will be presented to financiers for funding consideration.

     

    William Hugo, Cluster Coordinator for the Network for Inclusive Development at GIZ-Ghana, emphasised the significance of this intervention.

     

     

    “The Green Finance Facilitator (GFF) programme is a timely and relevant response to the urgent need for increased green finance flows to support sustainable and climate development in Ghana. With a focus on capacity building, technical assistance, and market development, we are proud to partner with our stakeholders to deliver the GFF program, which will help develop green projects that directly benefit the country,” he said.

     

     

    Key Components of the GFF Programme:

     

    * Financial feasibility review and financial modeling

     

    * Business plan improvement and market analysis

     

    * Structuring support to meet financier requirements

     

     

    * Assistance with contractual negotiations

     

    During the event, the official launch of the GFF website was also announced. The website is designed to empower businesses and drive sustainable investments by offering a user-friendly interface with comprehensive resources. These resources include detailed eligibility criteria, step-by-step application guidelines, and downloadable tools to support green projects.

     

    Call for Applications

     

    Small and medium enterprises (SMEs), as well as large projects, are encouraged to apply for support under the GFF programme. Interested applicants can access eligibility criteria and application guidelines on the GFF website at www.greenfinancefacilitator.com.

     

    Successful applicants will be matched with top-tier local business advisory firms who will provide tailored support specific to each business or project’s needs. The GFF will then invite financial institutions to consider financing offers and assist cohort companies in negotiating and securing these offers.

     

    The GFF programme represents a vital step in advancing Ghana’s climate goals and fostering sustainable economic growth through green investments.

     

    For further information, please contact Benjamin Attigah, Component Manager (PFS), via email at benjamin.attigah@giz.de

     

    About GIZ As a provider of international cooperation services for sustainable development and international education work, GIZ is dedicated to building a future worth living around the world. GIZ has over 50 years of experience in a wide variety of areas, including economic development and employment, energy and the environment, and peace and security. We work with businesses, civil society actors, and research institutions, fostering successful interaction between development policy and other policy fields and areas of activity. The German Federal Ministry for Economic Cooperation and Development (BMZ) is our main commissioning party. Currently, GIZ promotes sustainable development in Ghana via about 50 programmes and projects. Our activities currently cover three priority areas: Energy and Climate, with a concentration on renewable energy and energy efficiency; Training and Sustainable Growth for Decent Jobs, and Peaceful and Inclusive Societies, which looks at good governance. For more information, please visit www.giz.de/ghana

     

  • Chartered economist accuses NPP of depleting buffers for maintaining cedi stability

     

    Chartered economist Bernard Oduro Takyi

     

     

    Chartered economist Bernard Oduro Takyi, has accused the governing New Patriotic Party (NPP) of converting critical buffers meant to stabilize the cedi into collateral for borrowing.

     

    Speaking on a radio show last week, Mr. Oduro Takyi alleged that these buffers, created during the Mills-Mahama administration, were specifically designed to maintain cedi stability.

     

    He identified the Sinking Fund, the Heritage Fund, and the USLA Fund as some of the critical reserves that had been established under the previous administration.

     

    According to him, the NPP government has converted these reserves into collateral to secure loans, but with little to show for it.

     

     

    “This government has borrowed excessively and recklessly, to the point where all the buffers created to stabilize the cedi have been depleted.

     

    Yet, they have nothing tangible to show for it,” he remarked.

     

    Mr. Oduro Takyi highlighted the dire impact of this borrowing spree on the cedi, which he said is now trading at around GHS 17 to the US dollar.

     

    “The depreciation of the cedi has not only discouraged international bondholders but has also eroded the confidence of domestic bond investors,” he stressed.

     

     

    He described the economic management under the NPP as worrying, accusing the government of failing to address fundamental issues affecting the economy.

     

    According to the economist, the buffers created during the Mahama administration were meant to mitigate cedi depreciation and maintain macroeconomic stability.

     

    “These were forward-thinking measures to ensure the economy remained resilient, but the NPP has squandered them through borrowing,” he alleged.

     

    Mr. Oduro Takyi urged the government to take responsibility for the current economic challenges, noting that the public’s focus in the upcoming election will heavily centre on the state of the economy.

     

     

    “This year’s election is about the economy.

     

    Ghanaians are looking for a government that can deliver sound economic management,” he concluded.

     

     

  • Parliamentary deadlock delays $300mn World Bank funding – Fin Minister

     

    Finance Minister Dr. Mohammed Amin Adam

     

    The government has acknowledged that an ongoing parliamentary deadlock is preventing the disbursement of US$300 million in World Bank funding, vital for stabilising Ghana’s economy and addressing fiscal deficits.

     

    The funds, part of a larger financial support package from the World Bank, remain inaccessible due to the unresolved impasse in Parliament, which has been in indefinite recess as the two main political parties dispute control of the majority of seats.

     

    “We should have passed some legislation that would have qualified us for US$300 million from the World Bank. However, the World Bank has not disbursed the money because those bills have not been passed, as Parliament has not been functioning as it should,” Finance Minister Dr. Mohammed Amin Adam said during his monthly economic update, last week.

     

    The Finance Minister expressed optimism that the impasse would soon be resolved, allowing Ghana to access the crucial funds without significant delays. He also reassured the public that the government remains committed to delivering its policy priorities, despite the political gridlock.

     

     

    “We are focused on delivering our policy priorities for sustained economic growth. The budget has been presented to Parliament. We are waiting for Parliament’s own time. If this current Parliament doesn’t pass it, the next Parliament will approve it,” the Minister said.

     

    He emphasised that: “Certainly, if Parliament is not functioning, it affects the government.”

     

     

    Concerns have arisen that the parliamentary deadlock could lead to a potential government shutdown next year, particularly impacting the payment of salaries for public sector workers.

     

    However, the Finance Minister remains hopeful that a swift resolution will allow the government to present the mini-budget and avoid such setbacks.

     

    “To say that the economy has not been affected would be an understatement,” Dr. Adam admitted, acknowledging the far-reaching consequences of the parliamentary stalemate.

     

    Parliament is expected to reconvene on Monday, 16 December 2024, which may pave the way for the resolution of the deadlock and the release of the crucial financial support for the country.

     

     

     

     

     

  • Deregulate financial sector’ or watch the economy totally collapse – ACEYE

     

    Emmanuel Acquah, co-founder, Africa Centre for Entrepreneurship & Youth Empowerment (ACEYE)

     

    As a matter of urgency, Ghana must “deregulate the financial sector,” reducing government interference, Emmanuel Acquah, co-founder, Africa Centre for Entrepreneurship & Youth Empowerment (ACEYE), has posited.

     

    He said the country had “been good at fighting for political freedom because that’s where the political actors have the space to flourish.

     

    “But we’ve not been good at promoting economic, and its subset, entrepreneurial freedom, where the private sector can thrive with ease.”

     

    He questioned how government interventions by way of tightening regulations, for instance, have rightly addressed problems in the financial sector, inviting his audience to compare the current situation to “what used to be in the past when banks had the freedom”.

     

     

    Too much regulations, Acquah said, stifled innovation and creativity across fields, disciplines, and industries.

     

    Acquah spoke during a ACEYE Public Policy Value Rating presser in view of the 2024 general elections, held at their headquarters in Dome, Accra.

     

    Indicating anarchy was not what he was advocating, he observed the obvious inconsistency in enforcing existing regulations, illustrated by the financial sector cleanup of 2017/2018 where struggling and defaulting banks and finance houses were shut down by government.

     

    “The funny thing is when an entrepreneur makes a mistake, the government is so quick to punish the indigenous or local businessman. But look at what the central bank has done – the losses – who is going to punish those actors?” he quizzed.

     

    “There are no permanent solutions. There are incremental trade-offs. If you give [local businesses] the freedom to operate [with time, they will prosper].”

     

    Emmanuel Acquah lamented the minimal capital required to open a bank in Ghana, and the limitation is presented to investors.

     

    “I think GHS400 million. I mean, how many indigenous or local entrepreneurs or investors will have that kind of money? In actual sense, if you reduce it, you’ll have lots of these people coming in,” he said.

     

    “In the short term, you may not get the results [desired] but in the long term, you will.”

     

    Cost of Restrictions

     

    “When an economy is at the verge of collapsing, it gets to a point where there are so many regulations,” Acquah underlined, warning Ghana.

     

    With freedom to operate and “pilot their ideas and all,” businesses and entrepreneurs will be incentivised into heavy production and innovation across various industries, instead of “all of the banks we have [offering] the same packages,” he argued.

     

    Duplication

     

    Also, he bemoaned the duplication of government institutions and ministries, leading to ineffective accountability and misuse of public funds. He implied these institutions, instead of enabling entrepreneurial freedom, obstructed it, rather.

     

    MPR and Interest Rates

     

    Another challenge in the financial sector, Emmanuel Acquah identified, was the Bank of Ghana setting the monetary police rate (MPR) “so high”.

     

    “The commercial banks will go to the central bank for monies. When they come back, because they’re also in business, they have to add to their interest rate. In so doing, what happens? The rate at which they’re going to give funds to entrepreneurs also becomes very high, creating a problem where entrepreneurs cannot go for these loans,” he highlighted.

     

    “This is also an avenue for political actors to also make some money. They cripple the financial sector then they will say, ‘Well, we can come in and offer more grants, and funds to entrepreneurs.

     

    “So they end up creating lots of cash-transfer programmes but if you look at the impact, it’s very, very low.”

     

    The ACEYE executive challenged, “Anytime any government says they’ve created or supported this number of jobs, let’s ask about how many jobs or businesses they have also collapsed as a result of their intervention. That’s the only way we can measure how impactful their policy has been to Ghanaians.”

     

    Emmanuel Acquah said, ultimately, “you and I know what our neighbour [truly] needs and wants more than government,” underlining the need for entrepreneurs of the micro, small, and medium enterprises (MSMEs) and upwards to have the freedom to provide innovative goods and services to satisfy said needs and wants.

     

     

  • Gov’t transitioned economy from ‘taxation to robbery’ – Domelevo

    Former Auditor-General Daniel Yaw Domelevo

     

    Former Auditor-General Daniel Yaw Domelevo has accused the government of abandoning its commitment to transition Ghana’s economy from taxation to production, instead intensifying economic hardships on citizens.

     

    Speaking at a public forum on “Curbing Illicit Financial Flows Through Accountable Governance: The Role of Media”, Mr Domelevo sharply criticised government policies, alleging they have shifted from mere taxation to outright “robbery.”

     

    “Recently, I remarked that we were promised this country is moving from taxation to production, but we have moved from taxation to robbery,” he stated.

     

    He continued that: “Now the government is aiming at any money in your pocket. You put your savings there, and the government is aiming at it.”

     

     

    Mr Domelevo highlighted the Domestic Debt Exchange Programme (DDEP) as a glaring example, arguing that it unfairly targeted the savings of Ghanaians and undermined confidence in public financial management.

     

    “What pains me the most is after all this, the use to which they put the money. That is my biggest challenge,” he lamented, underscoring concerns about the lack of transparency in public expenditure.

     

    He also raised alarm over the potential risks to Treasury bills, cautioning that they could be next if current economic policies persist. Treasury bills have long been considered a secure investment option for many Ghanaians.

     

    The former Auditor-General’s critique comes amidst a broader public debate on Ghana’s economic policies, debt management strategies, and efforts to curb illicit financial flows.

     

    Mr Domelevo called for urgent reforms, stronger governance measures, and enhanced financial transparency to restore public trust and safeguard citizens’ interests.

     

     

     

  • Higher tourist arrivals is among major drivers of Ghana’s improved economy – Bank of Ghana

     

    Monetary policy committee of the bank of Ghana

    The Monetary Policy Committee (MPC) of the Bank of Ghana (BoG) has said, in relation to the domestic economy that high-frequency indicators point to continued improvement in economic activity in Ghana.

     

    In the third quarter of 2024, the committee said that the BoG’s high-frequency real sector indicators pointed to a sustained pick-up in economic activity.

     

    The updated real Composite Index of Economic Activity (CIEA) recorded an annual growth of 2.2 percent in September 2024, compared to a contraction of 0.4 percent in the corresponding period of 2023.

     

    “Major drivers of the improvement in economic activity include increased port activity, households and firms consumption of goods and services , construction activities, credit to the private sector, and higher tourist arrivals,” a statement issued after the 121st MPC sitting on Friday November 29 said.

     

    The committee kept the Policy Rate at 27 per cent.

     

    The statement explained that while global economic conditions remain favourable, the strength of the US economy coupled with a strong United States dollar and the possibility of a resurgence in global energy and food prices arising from trade protectionism, geopolitical conflicts, and extreme weather conditions will have to be monitored closely for policy responses to ensure stability in the economy.

     

    It noted that domestic macroeconomic conditions remain stable and the International Monetary Fund External Credit Facility (IMF-ECF) Programme implementation remains on track.

     

    Data observed through October 2024 indicated broad stability in the macroeconomic indicators. Growth outturn so far has been strong, and leading indicators of economic activity is projecting stronger growth in the second half of the year, business and consumer confidence is slowly turning around, core inflation remains broadly stable, the financial sector inflation expectations remain broadly anchored, reserve build-up has been sufficient to provide confidence, and the currency is recording some appreciation, it said.

     

    It added that the third review assessment of the IMF on the economy and on programme implementation also reflected a positive assessment and led to a Staff level Agreement.

     

    “Indications are that the IMF Board will meet in December to assess programme implementation thus far and assess forward-looking prospects of the economy. Sussessful completion of the assessment will likely trigger the release of additional US$360 million in December 2024. This should provide more impetus to stability,” the committee said.

     

    Regarding the local currency, the committee said that the cedi’s rebound observed recently should continue with the dissipation of election-related uncertainties and the improved foreign exchange buffers accumulated by the central bank.

     

    A combination of economic uncertainty brought about by the upcoming elections and the high demand for foreign exchange has led to an exchange rate path that is slightly deviated from the fundamentals. With strong macroeconomic policy implementation and improved foreign exchange availability, the economy should observe a realignment of the trajectory of the exchange rate with the fundamentals.

     

    “Commercial banks have accumulated enough capital buffers to withstand the effects of the external debt restructuring. The latest macro-prudential risk assessment showed that the impact from the Eurobond restructuring would be minimal, given the preemptive provisioning made by banks to account for potential impairments. Banks are therefore expected to continue to remain stable and support economic growth going forward.

     

    “Inflation projections show a slightly elevated profile driven by high and unstable food prices, pass-through of previous exchange rate pressures, fuel prices and utility tariff adjustments. The price increases in food items have been steep in the course and together with a fast-paced depreciating currency earlier on in the year have altered the inflation trajectory and stalled the disinflation process. At the time of the last MPC meeting, average inflation forecast a year ahead which stood at 19.0 percent has increased slightly to 20.1 percent at this forecast round. The horizon for inflation to get back within the target band of 6 – 10 percent has slightly shifted forward to Q42025 from the original forecast period of Q32025.

     

     

    “In the near-term, strengthening of the currency will augur well for future price developments. Under the circumstances, the Monetary Policy Committee decided to keep the policy rate unchanged at 27 per cent,” the statement said.

     

     

     

  • Deloitte optimistic of Ghana’s banking sector resilience

     

    Deloitte Ghana

     

    Deloitte West Africa has showing about the resilience of the banking system in Ghana despite challenges posed by both exogenous and endogenous macroeconomic factors.

     

    The professional services firm expressed this view in its economic brief centred on the Monetary Policy Rate (MPR) in Ghana and Nigeria, at a time when the Bank of Ghana (BoG) said that Commercial banks had accumulated enough capital buffers to withstand the effects of the external debt restructuring.

     

    The latest macro-prudential risk assessment showed that the impact from the Eurobond restructuring would be minimal, given the preemptive provisioning made by banks to account for potential impairments.

     

    “Banks are therefore expected to continue to remain stable and support economic growth going forward,” it said after announcing a decision by the Monetary Policy Committee (MPC) to keep the Policy Rate at 27%.

     

    Regarding the decision to maintain the policy rate, Deloitte said the the 27 % rate will anchor inflation expectations despite short-term pressures.

     

    It is also believed that the maintenance of the policy rate would support the Cedi recovery and ensure external sector stability. It also said the implication of the unchanged policy rate would also boost business and consumer confidence.

     

    The MPC cited a slightly elevated inflation despite a rebound in the stability of the Ghana cedi and a stable domestic economy as the rationale behind the unchanged policy rate of 27.0%.

     

    Deloitte is optimistic the policy rate will support economic growth and prevent inflation from rising.

     

    On the outlook, it said the Ghanaian economy will pick up, driven by rising business confidence and economic activities.

     

    It furthered that the strengthening of the local currency will help stabilise prices further.

     

    Higher Fuel Prices Impacting Cost of Production in Nigeria

     

    In Nigeria, the MPC raised the MPR to 27.50% for the 6th time since January 2024, amidst rising inflation.

     

    The concerns were higher fuel prices impacting the cost of production and distribution costs, persistent exchange rate pressure, reflecting high forex demand and elevated core inflation.

     

    Deloitte warned that there will be an implication of further squeeze in disposable income, reduced money supply but tighter credit access and increased cost of borrowing and loan defaults.

     

     

  • We’ve stayed fiscally disciplined despite Dec. 7 polls – Amin Adams

     

    The Finance Minister

     

     

    Finance Minister Dr. Mohammed Amin Adams has reassured Ghanaians that the government has maintained fiscal discipline despite the pressures of the upcoming December 7 general elections.

     

    At a press conference held in Accra last week, the Minister emphasised that the government has kept its spending under control, avoiding budget deficits in 2024, even amidst extensive infrastructure projects being carried out across the country.

     

    “In an election year, we have maintained uncharacteristic fiscal discipline, and with all the massive infrastructure around the country, as demonstrated by the many projects His Excellency the President has commissioned recently, we have continued to stay the course. We have continued to invest in our people,” the minister said.

     

    He also responded to concerns about investment losses related to the government’s debt restructuring programme, which has been affected by the economic downturn caused by the COVID-19 pandemic.

     

     

    Dr. Adams assured affected Ghanaians that their losses would be recouped by the end of 2026, as the economy is expected to recover, with positive improvements in key macroeconomic indicators.

     

    During the monthly briefing, Dr. Adams expressed confidence that government’s long-term policies would facilitate a stable economic recovery, providing the necessary conditions for investments to rebound and thrive.

     

  • DDEP participants to recover losses by 2026 – Fin Ministry

    Debt restructuring

     

    Adnan Adams Mohammed

     

    Participating individuals and corporate entities of the domestics debt exchange programme (DDEP) are likely to recover their delayed investment payment before end of 2026, the Finance Ministry has assured.

     

    The debt restructuring resulting from the economic downturn caused by COVID-19, have delayed investment payout of all those who invested in treasury notes and bonds issued by the Government of Ghana.

     

    However, the ministry expressed confidence that government’s long-term economic policies would lead to an economic rebound and significant improvements in the country’s macroeconomic indicators. Despite the challenges, government is committed to ensuring that those who have suffered losses will see a return on their investments within the next few years.

     

    “I do not have any doubt that in a year or two, those who have lost money will recover their money”, Dr. Mohammed Amin Adams when speaking during a monthly press briefing, last week. “I know they will be smiling to the bank. It has taken us a lot of effort to bring this economy back to this state. Many people doubted, but I want to reassure you that this recovery is not by accident but by strong policies.”

     

    The Finance Minister also addressed the country’s debt restructuring process, reiterating government’s pledge to honour all restructured debts in light of the economy’s positive outlook. He highlighted recent strong economic performance, which he believes will pave the way for the timely settlement of obligations.

     

    Dr. Adams confirmed that government is on track to meet its obligations to Eurobond holders before the January 2025 maturity date, marking a second consecutive achievement in fulfilling its debt commitments. The successful payment of USD520 million in coupon obligations in October 2024 demonstrated the government’s determination to maintain its creditworthiness.

     

    “Our next coupon payment will be 2nd January, we are ready. We are not going to default, we are ready,” he added.

     

     

  • Deloitte, BoG hopeful Cedi rebound to stay for…but IEA doubts

    The local currency of Ghana

     

    Adnan Adams Mohammed

     

     

    International accounting firm, Deloitte, is confident that the current appreciation of the local currency, Cedi, is due to Bank of Ghana Monetary Policy Committee’s to stay the policy rate.

     

    The firm believes that, the unchanged policy rate will hold the rebound for a while and in the long run push inflation downwards after stabilizing prices on the market.

     

    The MPC cited a slightly elevated inflation despite a rebound in the stability of the Ghana cedi and a stable domestic economy as the rationale behind the unchanged policy rate of 27.0%. Deloitte is optimistic the policy rate will support economic growth and prevent inflation from rising.

     

    “The implication of the unchanged policy rate would also boost business and consumer confidence”, Deloitte indicated in its economic brief centered on the Monetary Policy Rate (MPR) in Ghana and Nigeria, released last week.

     

    As of Thursday, December 5, the Cedi was buying at 14. 91 to a Dollar and selling at 14.93, per the Bank of Ghana rate as against the rate a day before on Wednesday, December 4, when it was buying at 15.11 to a dollar and selling at 15.12.

     

    With the Pound, it buys at 18.95  and sells at 18.97.  With the Euro, it buys 15.69 and sells at 15.71.

     

    These rates represent some marginal gains made by the local currency against the major trading ones.

     

     

    Meanwhile, analysts have wondered whether or not the Cedi’s resurgence will be sustainable beyond the general elections.

     

    The Director of Research at the Institute of Economic Affairs (IEA), Dr John Kwakye, noted that the recent cedi appreciation is due to deliberate intervention by the Bank of Ghana (BoG) ahead of the election.

     

    “It’s got nothing to do with improved economic fundamentals,” he said.

     

    He expresses the view that “The real test will come after the election.”

     

    A month to the election, Dr Kwakye notes that it has sharply appreciated to below 15 due to BoG intervention.

     

    “But why now? And what is going to happen after the election? Or is it a matter of seek ‘ye’ first election victory and all other things will be yours?”

     

    In response to the doubts raised by Dr Kwakye and other analysts, the Monetary Policy Committee (MPC) of the Bank of Ghana (BoG) has said, the cedi’s rebound observed recently should continue with the dissipation of election-related uncertainties and the improved foreign exchange buffers accumulated by the central bank.

     

    “A combination of economic uncertainty brought about by the upcoming elections and the high demand for foreign exchange has led to an exchange rate path that is slightly deviated from the fundamentals”, the Committee said last week. “With strong macroeconomic policy implementation and improved foreign exchange availability, the economy should observe a realignment of the trajectory of the exchange rate with the fundamentals.”

     

    The MP further explained that, while global economic conditions remain favourable, the strength of the US economy coupled with a strong United States dollar and the possibility of a resurgence in global energy and food prices arising from trade protectionism, geopolitical conflicts, and extreme weather conditions will have to be monitored closely for policy responses to ensure stability in the economy.

     

    It noted that domestic macroeconomic conditions remain stable and the International Monetary Fund External Credit Facility (IMF-ECF) Programme implementation remains on track.

     

    Data observed through October 2024 indicated broad stability in the macroeconomic indicators. Growth outturn so far has been strong, and leading indicators of economic activity is projecting stronger growth in the second half of the year, business and consumer confidence is slowly turning around, core inflation remains broadly stable, the financial sector inflation expectati ons remain broadly anchored, reserve build-up has been sufficient to provide confidence, and the currency is recording some appreciation, it said.

     

    It added that the third review assessment of the IMF on the economy and on programme implementation also reflected a positive assessment and led to a Staff level Agreement.

     

    “Indications are that the IMF Board will meet in December to assess programme implementation thus far and assess forward-looking prospects of the economy. Sussessful completion of the assessment will likely trigger the release of additional US$360 million in December 2024. This should provide more impetus to stability,” the committee said.

     

    “Commercial banks have accumulated enough capital buffers to withstand the effects of the external debt restructuring. The latest macro-prudential risk assessment showed that the impact from the Eurobond restructuring would be minimal, given the preemptive provisioning made by banks to account for potential impairments. Banks are therefore expected to continue to remain stable and support economic growth going forward.

     

    “Inflation projections show a slightly elevated profile driven by high and unstable food prices, pass-through of previous exchange rate pressures, fuel prices and utility tariff adjustments. The price increases in food items have been steep in the course and together with a fast-paced depreciating currency earlier on in the year have altered the inflation trajectory and stalled the disinflation process. At the time of the last MPC meeting, average inflation forecast a year ahead which stood at 19.0 percent has increased slightly to 20.1 percent at this forecast round. The horizon for inflation to get back within the target band of 6 – 10 percent has slightly shifted forward to Q42025 from the original forecast period of Q32025.

     

     

    “In the near-term, strengthening of the currency will augur well for future price developments. Under the circumstances, the Monetary Policy Committee decided to keep the policy rate unchanged at 27 per cent,” the statement said.

     

    On the outlook, Deloitte in its report said, the Ghanaian economy will pick up, driven by rising business confidence and economic activities.

     

    It furthered that the strengthening of the local currency will help stabilise prices further.

     

    In Nigeria, the MPC raised the MPR to 27.50% for the 6th time since January 2024, amidst rising inflation.

     

    The concerns were higher fuel prices impacting the cost of production and distribution costs, persistent exchange rate pressure, reflecting high forex demand and elevated core inflation.

     

    Deloitte warned that there will be an implication of further squeeze in disposable income, reduced money supply but tighter credit access and increased cost of borrowing and loan defaults.

     

    Apparently, the accounting firm is upbeat about the resilience of the banking system despite exogenous and endogenous macroeconomic headwinds