News Guide Africa

Category: News

  • Salary payment may delays amid leadership deadlock in Parliament – Afenyo Markin hints

     

    Mr Alexander Afenyo-Markin

     

    The leader of the New Patriotic Party (NPP) caucus in Parliament, Mr Alexander Afenyo-Markin, has raised concerns over potential delays in public sector salaries, attributing the risk to stalled budget approvals by the National Democratic Congress (NDC) Caucus.

     

    Speaking at a press briefing last week, after the Speaker adjourned Parliament indefinitely for the second time in recent weeks due to a lack of business, Mr. Afenyo-Markin accused the NDC of deliberately obstructing the approval of the 2025 first-quarter budget.

     

    This delay, he warned, could jeopardize the timely payment of salaries to public workers.

     

    “The NDC is creating chaos, aiming to disrupt the system so Ghanaians cannot receive their pay, all in an effort to project an image of disorder,” he stated.

     

     

    According to Afenyo-Markin, the government’s ability to pay public sector workers depends on Parliament’s budgetary approval.

     

    Without this endorsement, funds cannot be released, potentially causing salary delays and impacting morale across the public sector.

     

    He further emphasized that the delay also sends a troubling signal regarding Ghana’s democratic stability amid ongoing economic challenges.

     

    The NPP caucus leader argued that the NDC’s tactics reflect a broader strategy to impede key government initiatives, including the Free Senior High School (SHS) programme.

     

     

    He also suggested that the NDC is working with the Speaker of Parliament to obstruct legislation essential for future educational reforms.

     

    As the parliamentary standoff continues, Mr. Afenyo-Markin assured the public that the NPP caucus remains committed to advancing government initiatives.

     

    He pledged that the government would pursue all legal and constitutional avenues to prevent disruptions to its agenda and ensure stability in the public sector.

     

     

     

  • Newmont declares $0.25 per-share Q3 dividend

    Newmont

     

    Newmont Corporation has declared a third-quarter dividend of $0.25 per share.

    Concerning its third quarter 2024 results, Newmont President and CEO Tom Palmer said: “In the third quarter, Newmont delivered 2.1 million gold equivalent ounces and generated $760 million in free cash flow from our world-class portfolio.”

     

    He added: “We continue to make meaningful progress on our non-core divestment program with the two transactions announced in the quarter, which are expected to deliver up to $1.5 billion in combined gross proceeds. Our divestiture progress and strong free cash flow generation have positioned us to continue reducing debt and repurchasing shares, creating significant and lasting value for our shareholders.”

     

    Highlights of Q3 2024 results:

     

     

    Announced an agreement to sell the Akyem mine in Ghana for up to $1 billion in cash, as well as an agreement to divest the Telfer mine and 70 per cent interest in the Havieron project in Western Australia for up to $475 million of gross proceeds

     

    Continue to expect to receive at least $2 billion in gross divestiture proceeds from high-quality, non-core asset sales, in addition to the 527 million dollars in cash already received from other investment sales since the beginning of 2024

     

    Since the last earnings release, repurchased 9.4 million shares at an average price of $53.16 for a total cost of $500 million, of which $198 million was repurchased during the third quarter2; $750 million of share repurchases completed since the program announced in February 2024

     

    Newmont’s Board authorised an additional $2 billion share repurchase program to be executed at the Company’s discretion, utilising open market repurchases to occur from time to time throughout the next 24 months

     

     

    Delivered $786 million in total returns to shareholders through share repurchases and dividend payments2; declared a dividend of $0.25 per share of common stock for the third quarter of 20244

     

    Since the last earnings release, reduced nominal debt by $233 million for a cash cost of $210 million, of which $150 million was purchased during the third quarter and $83 million was purchased in October 2024; $483 million of debt retired year-to-date in 2024

     

    Produced 1.7 million attributable gold ounces, primarily driven by the production of 1.4 million gold ounces from Newmont’s Tier 1 Portfolio5, as well as 430 thousand gold equivalent ounces (GEOs)6 from copper, silver, zinc, and lead, including 37 thousand tonnes of copper

     

    Generated $1.6 billion of cash from operating activities, net of working capital changes of $(209) million; reported $760 million in Free Cash Flow

     

     

    Reported Net Income of $924 million, Adjusted Net Income (ANI) of $0.81 per diluted share and Adjusted EBITDA of $2.0 billion

     

    Achieved $500 million annual synergy run-rate following the Newcrest acquisition, reaching Newmont’s commitment more than a year ahead of schedule

     

    Positioned to meet Newmont’s 2024 production guidance; expect to deliver attributable production of 1.8 million gold ounces at an All-In Sustaining Cost (AISC) of $1,475 per ounce in the fourth quarter

     

     

    Partnered with MKS PAMP to launch a traceable mine-to-market gold bar; for sale through the largest U.S. wholesaler, providing consumers direct access to Newmont’s gold and demonstrating a commitment to transparent sourcing

     

  • CPC records $13.08m Q3 loss

    Cocoa Processing Company

     

    The Cocoa Processing Company Limited (CPC), Ghana’s state-owned cocoa processor, reported a net loss of $13.08 million for the nine months ending September 30, 2024—a 5.6% rise from its $12.38 million loss during the same period last year.

     

    The deepening losses are primarily driven by rising operational costs, including higher selling, distribution, and financial expenses.

     

    According to CPC’s unaudited third-quarter financial statement, revenue fell to $31.1 million, down 3.86% from $32.3 million in the prior-year period.

     

    The production also took a significant hit: cocoa bean processing dropped to 3,256 metric tonnes from 7,051 metric tonnes in 2023, while the output of semi-finished and confectionery products also declined sharply.

     

     

    To sustain operations amid its financial struggles, CPC secured a commitment from Ghana’s cocoa regulator, COCOBOD, to continue supplying cocoa beans without demanding repayments that would compromise CPC’s activities.

     

    In response to the losses, the company’s board has introduced measures aimed at a turnaround, focusing on cost-cutting, infrastructure investments, and revenue diversification.

     

    In a strategic move to shore up its finances, CPC is in talks with the African Export-Import Bank (Afreximbank) for an $86.7 million loan.

     

    The proposed facility would cover CPC’s bank debts, working capital needs, and upgrades to plant and equipment for production expansion.

     

     

    Management expects to finalise the loan by December 2024, with the first tranche anticipated by March 2025.

     

     

  • MTN Ghana bags ₵12.7bn service revenue despite economic headwinds

     

     

     

     

    MTN Ghana reported strong third-quarter financials, contributing GHS 6.1 billion in taxes to the Ghanaian government in the nine months ending September 30, 2024, marking a 49.5% increase in year-on-year tax payments and highlighting the telecom giant’s expanding fiscal role.

     

    Despite economic headwinds, MTN Ghana achieved a 32% year-on-year rise in service revenue, reaching GH₵12.7 billion, propelled by robust growth in data and Mobile Money (MoMo) services.

     

    The company’s Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) rose 32.2% to GH₵7.2 billion, with an improved EBITDA margin of 56.2%.

     

    Profit after tax surged 35.5% to GH₵3.8 billion.

     

     

    MTN Ghana’s data revenue climbed 53.4%, fueled by a 17.3% increase in active data subscribers, while MoMo revenue spiked by 50.8%, underscoring MTN’s expansion in the fintech sector.

     

    The company invested GH₵3.7 billion in capital expenditures to expand its network infrastructure, aiming to enhance service delivery.

     

    Operating within a challenging economic landscape of high inflation and currency depreciation, MTN Ghana’s sustained revenue and tax contributions reflect its resilience and commitment to Ghana’s economic growth.

     

    The company’s strategic priorities continue to centre on digital expansion and economic development, including initiatives such as scholarships and a seed capital fund for micro, small, and medium-sized enterprises.

     

     

     

  • MIIF invests $2m in Kambale Graphite Project

    Kambale Graphite Project

     

    Castle Minerals has announced that Ghana’s Minerals Income Investment Fund (MIIF) has committed a $2 million investment to support the company’s gold exploration activities and the development of the Kambale Graphite Project in northern Ghana.

     

    The commitment, outlined in a non-binding term sheet, includes a $500,000 equity investment in Castle Minerals and a $1.5 million stake in its Ghanaian subsidiary, Kambale Graphite Limited, which oversees the graphite project.

     

    The funding is expected to advance the project to a pre-feasibility study, with plans to produce specialised graphite concentrates for use in lithium-ion battery anodes.

     

    The 149 km-square Kambale Graphite Project licence is held by a hundred per cent-owned Ghanaian subsidiary, Kambale Graphite Limited (KGL).

     

     

    It is located 6 km west of Ghana’s Upper West regional capital of Wa which is 640 km north, via good sealed roads, of the capital Accra and the Port of Tema, which provides direct access to global export markets.

     

    Wa has an excellent infrastructure including a commercial airport only a few kilometres from the Project, numerous well-maintained sealed and unsealed roads, plenty of potable water and reliable grid power largely fed with electricity generated by the 400MWh Bui hydroelectric dam.

     

    These will all combine to represent a large saving in Project establishment capital costs. Mineral Resource Estimate In October 2023, the Kambale MRE was increased to 22.4Mt grading 8.6% TGC containing 1.94Mt of graphite.

     

    This included 43% in the higher confidence Indicated Mineral Resource category.

     

     

    Castle Executive Chairman Stephen Stone said: “The proposed transformational funding arrangement with Ghana’s sovereign wealth fund, the Mineral Income Investment Fund, will not only see the Project accelerated through to pre-feasibility but also establishes a de-risking platform for the offtake of a major proportion of graphite production and the provision of development capital.”

     

    He added: “With MIIF having already formed an alliance with Atlantic Lithium and its Ewoyaa lithium project, its Castle investment fully aligns with the country’s aspiration to build Sub-Sahara’s first lithium-ion battery manufacturing hub and to be a leader in the global energy transition.”

     

    He noted: “An undertaking to list on the fast-growing Ghana Stock Exchange will open up access to additional in-country investment and capital. Kambale’s fine flake graphite is the form required for lithium-ion battery anode manufacture and extensive test work has demonstrated that it can be processed to achieve the stringent specifications required for use in anode manufacture. The high-grade 22.4 million-tonne Mineral Resource will comfortably support a long-term production facility. We are looking forward to a very productive partnership with MIIF and the Ghana government.”

     

     

    MIIF Chief Executive Officer, Edward Nana Yaw Koranteng, added: “The Minerals Income Investment Fund of Ghana is a minerals sovereign wealth fund whose underlying objective is to support the growth of mining in Ghana and provide a de-risking option for investors in the mining space.”

     

     

    He said: “We are excited about the proposed USD2.0 million investment in Castle Minerals Limited and its subsidiary, Kambale Graphite Limited, which meets this objective. It also fully aligns with the Government of Ghana’s critical minerals policy and its aspiration to establish sub-Sahara’s first lithium-ion battery manufacturing facility. Combined with our investment in Atlantic Lithium Limited, Ghana is moving closer to firmly positioning itself in the global EV supply chain and playing its part in reducing harmful global emissions. Ghana’s status as one of the best mining investment destinations in Africa is considerably reinforced.”

     

     

     

  • Healthcare workers issue ultimatum over delayed collective agreement

     

    Health service workers’ union

     

     

    The Health Services Workers’ Union (HSWU) of TUC (Ghana) has issued a strong warning to government over delays in finalising a new Collective Agreement with health agencies under the Ministry of Health, cautioning that members may be forced to take action if negotiations do not conclude by Monday, 11 November 2024.

     

    In a statement issued last week, the union expressed mounting frustration among members over the prolonged negotiations.

     

    The talks, which were due for a mandatory review in November 2023, have stalled despite efforts to address essential working conditions amid escalating economic challenges.

     

    As required by law, the union submitted proposals to the Fair Wages and Salaries Commission in November 2023, initiating the discussions. Negotiations formally began in May 2024, but the union states that months of meetings have yet to produce meaningful progress.

     

    “There have been countless meetings with the government team, and we seem not to be making a headway,” the union remarked, highlighting that the lack of progress has left members increasingly agitated.

     

    Setting a deadline, the union made clear its members’ tolerance has worn thin.

     

    “We are giving them up to Monday, November 11, 2024, to get all the outstanding issues resolved to enable the parties conclude and sign the agreement for its implementation,” the union’s statement read.

     

    The HSWU emphasised that finalising the agreement is crucial for alleviating the economic hardships facing health services workers.

     

    Should the government fail to meet the deadline, the union warned, it would take action, saying it would “advise itself in a language that the government best understands.”

     

    Encouraging members to “remain calm and resolute,” union leaders reassured them of their commitment to achieving a fair agreement.

     

     

     

     

  • BoG’s gold coin effectiveness to tackle Ghana’s dollarised economy critiqued

    Ghana gold coin

     

    Adnan Adams Mohammed

     

    The Institute of Economic Affairs (IEA) has critically assessed the Bank of Ghana’s recently launched Ghana Gold Coin (GGC), questioning its effectiveness in tackling the country’s reliance on the U.S. dollar.

     

    During the launch, the central bank noted that the GGC will encourage savings and improve liquidity in financial markets.

     

    However, the IEA’s latest report casts doubt on the coin’s impact, suggesting that the central bank should instead address more pressing economic challenges like inflation and fiscal imbalances.

     

    “Offering the GGC as an alternative asset to the dollar seems to be an admission of failure to deal with the real problems facing the economy, which drives Ghanaians to hold dollars instead of cedis,” the report asserts.

     

    The IEA also disputed the Bank’s claims about the GGC’s role in managing liquidity, noting that “the Bank is expected to buy gold from miners with cedis… [and] the sale of GGCs back to Ghanaians in exchange for those same cedis injected into the economy ultimately results in zero liquidity withdrawal.”

     

    According to the IEA, deeper reforms are needed to reduce the demand for foreign currency, emphasising that “the Bank should focus on dealing with the fundamental causes of the cedi depreciation.”

     

    The report urges measures such as enforcing fiscal and monetary discipline to ease pressure on the cedi, narrowing the inflation gap with trading partners, and addressing foreign exchange imbalances through structural reforms.

     

     

  • myCreditScore launched; aimed to boost financial inclusion in Ghana – Bawumia says

    The Vice President of Ghana

     

    Adnan Adams Mohammed

     

    myCreditScore, a credit reference and scoring system has been launched last week in the country.

     

    This is to allow Ghanaians to showcase their creditworthiness transparently, thereby enhancing their access to credit.

     

    The system, backed by the Bank of Ghana, is designed to offer financial institutions a reliable assessment of individuals’ credit profiles, ultimately making borrowing more accessible and rewarding responsible financial behaviour.

     

    “It is a significant milestone in Ghana’s journey towards a financially inclusive and empowered society,” Vice-President Dr Mahamudu Bawumia said during the launching event in Accra last week, emphasising that the new system opens “yet another chapter in the nation’s ambitious journey towards financial inclusion.”

     

    The personalised credit scoring system will reward those who demonstrate good credit behaviour with higher scores, which can, in turn, lead to better access to larger credit amounts from financial institutions.

     

    This approach is intended to incentivise financial responsibility and ease barriers to credit for Ghanaians across the country.

     

    Dr Bawumia, who spearheaded the project, highlighted myCreditScore as a critical tool for addressing long-standing challenges in lending.

     

    He noted that the absence of a reliable credit information system has, in the past, heightened lending risks, leading financial institutions to offer limited credit with high-interest rates to mitigate potential defaults.

     

    Dr. explained: “The absence of a credit information system has increased lending risks, leading financial institutions to offer less credit. A credit reporting system in Ghana will provide timely, accurate, and up-to-date information on debt profiles and borrowers’ repayment history, yielding numerous benefits.”

     

    By enabling banks and lenders to accurately assess the creditworthiness of potential borrowers, the new system is expected to reduce lending rates over time, creating a more dynamic credit economy for all Ghanaians.

     

    Dr Bawumia described myCreditScore as “a step forward in building a dynamic credit economy for Ghana and all Ghanaians,” affirming its potential to create a financially empowered society.

     

     

     

  • Ghana bags $840mn oil revenue in first half…$300mn more over 2023 figure

    Public interest and accountability committees

     

    Adnan Adams Mohammed

     

    The Public Interest and Accountability Committee’s (PIAC) Semi-Annual Report has indicated that, oil revenue for January to June 2024 reached US$840.7 million, a notable rise from US$540 million in the same period in 2023.

     

    This shows a little over $300 million, translating into 55.6 percent jump in oil revenue primarily due to heightened production in part of the new Jubilee South East well.

     

    The percentage revenue rise is the highest half-year earnings since the inception of oil production in Ghana, reflecting a positive trajectory for the sector.

     

    “The upward trend would continue through the remainder of the year”,

    PIAC Chairman, Constantine Kudzedzi expressed optimism over the rebound trend.

     

    Also, the report highlighted key aspects of petroleum revenue management, including data on production, government allocations for the Annual Budget Funding Amount (ABFA), and the performance of the Ghana Stabilisation and Heritage Funds.

     

    These funds are instrumental in managing and investing oil revenue for sustainable growth and economic stability.

     

  • Mahama storms Agona Swedru on Friday

    John Mahama storms Agona Swedru

     

    Read Full Press Release:

    5th November, 2024

     

    John Dramani Mahama to Visit Agona Swedru on Friday, 8th, November 2024

     

    The National Democratic Congress (NDC) in Agona West is delighted to announce the upcoming visit of our incoming President, John Dramani Mahama, to Agona Swedru on Friday, 8th November 2024 at Main Lorry Station.

     

    This significant event is hosted by our dedicated, charismatic and compassionate Parliamentary Candidate, Mrs. Ernestina Ofori Dangbey, as part of the ongoing campaign to reset Ghana for jobs, accountability, and prosperity for all.

     

    During this visit, key aspects of the NDC’s transformative manifesto will be highlighted, focusing on initiatives that directly impact the lives of Ghanaians. Among the promises to be discussed are:

     

    Establishment of Farmers Centers for the supply of tractors and free fertilizer distribution to farmers.

     

    The 24-Hour Economy, promoting continuous economic activity to boost productivity and job creation.

     

    Women’s Development Bank to support women’s empowerment and entrepreneurship.

     

    Free Primary Healthcare for all citizens.

     

    National Apprenticeship Program to provide skills training and employment opportunities.

     

    Free Tertiary Education for Level 100 students to ease the financial burden on families.

     

    Modern ICT Center in line with the 1 Million Coders Program, aimed at equipping the youth with essential digital and technological skills.

    We call on the rank and file of the NDC, supporters, and the good people of Agona West to come out in their numbers and give John Mahama a rousing welcome.

     

    This visit is not just a campaign event; it is a moment to reaffirm our collective commitment to resetting Ghana and creating a future that ensures jobs, accountability, and prosperity for all.

     

    Let us all rally together and demonstrate our unwavering support for John Mahama and the NDC as we work towards victory on December 7th.

     

    Signed,

    Abdul-Wahab Africa Zion

    Communications Officer, Agona West NDC