Economic Revitalization
– Revitalize Collapsed Banks: Restore banks that had collapsed under Bawumia’s leadership to bring financial stability to millions ¹.
– _Women’s Empowerment through Finance_: Establish a women’s bank to provide financial support and expand business opportunities for women.
– _24/7 Economy_: Operate a 24-hour economy to boost employment and economic growth.
Education and Healthcare
– Improved Secondary Education: Review and reform the Free Senior High School (FSHS) policy to abolish the double track system.
– Free University Fees: Waive academic user fees for first-year university students.
Good Governance
– Lean Government: Operate a lean government to reduce waste and save public funds.
– Accountability: Hold corrupt officials accountable for their actions.
Taxation and Industry
– Tax Relief: Abolish E-levy, bet tax, and other obnoxious taxes.
– Poultry Industry Growth: Support and expand the poultry industry to boost agriculture and food security.
These policies aim to promote economic growth, social welfare, and good governance.
The Executive Chairman of the KGL Group, Mr Alex Apau Dadey says governments must stop paying lip service when it comes to the promise of making the private sector the engine of growth.
According to the business mogul, this is because great countries are built by entrepreneurs or businessmen, not politicians.
Speaking in an interview, Mr. Dadey explained that it is, however, the responsibility of every government to back the private sector by putting in place the necessary structures and systems.
“My philosophy is that great countries are built not by politicians but by great entrepreneurs.
Once we shift our mindset to that, we will encourage others.
“I hear governments all over the place talk about raising millionaires, raising billionaires but sometimes we misunderstand this concept of raising these millionaires and billionaires.
We raise them for society, we raise them to create employment.
Yes, they might take a chunk of it but would you rather have the government take a chunk of your money and provide you with nothing or the private sector takes the lead?
“A recent example is Dangote in Nigeria. Yes, sometimes you get a little political backing but it does not matter because that is what the government is supposed to do.
“Government is supposed to back the private sector, be it in our country NPP or NDC… It does not matter. That is the role of government.”
The 2023 EMY Man of the Year also rejected the labelling of businessmen and entrepreneurs in Ghana as either members of the governing New Patriotic Party (NPP) or the opposition National Democratic Congress (NDC).
He is of the view that every businessman will work with any government in power, with the aim of helping grow the economy.
Mr. Dadey stressed that entrepreneurs put in the work and effort to grow their businesses and that must not be undermined with political affiliations.
“We get it all wrong when we create our narrative of an NPP businessman or an NDC businessman, there is no NPP or NDC businessman. There are businessmen. They work.
“But because of the way we have structured our systems, they have to work with every government in power.
“Sometimes you hear people saying this businessman was with this party and later moved to that party but businessmen don’t think like that.
They do what is necessary.
“So, we have to encourage the private sector not to pay lip service and say that the private sector is the engine of growth when we don’t mean that,” he added
Asante Gold Corporation
Asante Gold Corporation has announced a $525 million financing package to fully fund its growth plans and address short-term liabilities.
The financing will occur in two stages and includes a previously announced $100 million equity private placement and an additional $425 million in various financing transactions.
These include a comprehensive refinancing agreement (Kinross Refinancing) with Kinross Gold Corporation, senior debt issuance, Ghanaian bond issuance, and gold stream agreements.
Dave Anthony, Asante’s President and CEO, stated, “Completion of this comprehensive financing package will mark a breakthrough moment in Asante’s history. It will transform our balance sheet and support our growth plan to achieve annual gold production above 500,000 ounces by 2028, with significantly lower all-in-sustaining costs. We look forward to welcoming our new Ghanaian and international financing partners, who recognize the unique opportunity to establish Bibiani-Chirano as Africa’s next Tier One gold district amid a historic gold bull market.”
Highlights of the Financing Package
$525 million to fully fund growth plans and balance sheet needs, including: Bibiani: pit expansion, sulphide plant, community resettlement, and underground mine development
Chirano: mobile equipment, underground development and expansion, and plant upgrades
Kinross Refinancing: equity conversion and deferred payments
Settlement of short-term liabilities
Stage 1: $325 million Financing to Complete by End of 2024
$100 million equity private placement (previously announced) $100 million Kinross Refinancing, increasing Kinross’s shareholding in Asante to 9.9% $75 million local currency, dollar-linked bond funded by strategic Ghanaian institutions $50 million syndicated gold stream facility
Stage 2: $200 million financing to be completed in early 2025
$150 million senior debt facility, arranged by FirstRand Bank Limited (Rand Merchant Bank division) as the initial mandated lead arranger and book runner $50 million standby equity commitment from a strategic investor
Endeavour Financial is acting as the Company’s financial advisor in connection with the financing package. Completion of these transactions is subject to negotiation and execution of definitive agreements, due diligence by certain counterparties, and requisite stock exchange approvals.
Stage 1 Financing: $325 million Asante aims to close the Stage 1 financing by the end of 2024, funding key projects at its operating mines.
This financing is anticipated to progress the sulphide treatment plant (Bibiani), open pit stripping, community resettlement (Bibiani), underground development (Bibiani and Chirano), mobile equipment upgrade and mine development (Chirano), and resource expansion (Bibiani and Chirano). Additionally, it will address obligations including a cash payment to Kinross and funding for Bibiani’s mining contractor to ramp up equipment for pit expansion.
Equity Private Placement The company recently entered a $100 million equity private placement agreement, selling 90,666,667 common shares at C$1.50 per share. The first tranche of $25 million closed on October 29, 2024, with the second tranche of $35 million scheduled to close on November 14, 2024, and the third tranche of $40 million scheduled for December 5, 2024.
Kinross Refinancing Under the terms of the Kinross Refinancing, Asante will make a $65 million cash payment toward deferred acquisition consideration for the Chirano Mine and replace a letter of credit for reclamation obligations.
Upon completion, Kinross will (i) convert a portion of remaining amounts into equity (increasing its shareholding to 9.9%); (ii) convert remaining amounts into a convertible debenture with a six-month maturity extension after the Senior Debt Facility matures and a 3.0% interest rate; and (iii) relinquish its security interest in the entities owning the Chirano Mine.
Ghanaian Bond The company has launched a $75 million bond offering in Ghana, targeting Ghanaian pension funds and high-net-worth individuals. The six-year bond will pay interest quarterly in cash, with principal amortization in the final year. The bond is denominated in Ghanaian cedis and indexed to the US dollar exchange rate after closing. Gold Stream The company plans a $50 million syndicated gold stream, with a committed investment of $25 million. This agreement allows Asante to sell 1.25% of payable gold from the Bibiani and Chirano mines at 20% of the prevailing market price. The stream includes a 50% buyback provision and a reduced stream rate after certain delivery thresholds.
Stage 2 Financing: $200 million The company plans to secure an additional $200 million in early 2025 to support working capital and liquidity needs. This includes a $150 million senior debt facility (comprising a $100 million term loan with an 18-month grace period and a $50 million revolving credit facility) arranged by RMB, which has received preliminary approvals for 50% of the amount. A $50 million standby equity commitment will be available through 2025 if needed for liquidity requirements.
The Chief Executive Officer of Ghana Trade Fair Limited, Madam Agnes Adu, has announced that the redevelopment of the Ghana Trade Fair site is on track for completion by the end of the year.
This ambitious project includes the construction of a major convention centre, which is pivotal for enhancing the country’s capacity to host international events and trade fairs.
Madam Adu noted that significant progress has been made on essential infrastructure, stating that 90% of the roads, drainage systems, power supply, water facilities, and data fibre connections have been completed.
This comprehensive groundwork is critical for ensuring that the Trade Fair site meets modern standards and can accommodate a wide range of activities once the redevelopment is finalized.
In addition to the convention centre, the redevelopment plans also include the construction of a hotel, retail spaces, and a data centre.
Madam Adu revealed that the construction of these additional facilities is set to commence in early 2025, further bolstering the site’s capabilities and offering more amenities for visitors and exhibitors.
The redevelopment of the Ghana Trade Fair is a significant step towards revitalizing the country’s trade and exhibition landscape, aiming to attract both local and international businesses.
With the CEO’s assurance of timely completion, stakeholders remain optimistic about the potential economic benefits the revamped Trade Fair will bring to Ghana
CalBank (GSE: CAL) has reported a stellar third quarter for 2024, showcasing a remarkable 97.4% increase in fee income, a 26.5% surge in deposits, and a robust post-tax profit of GHS223.9 million.
With a clear focus on digital expansion, disciplined cost control, and strategic deposit growth, CalBank is on track for continued success. Earnings: Big Gains and Strategic Adjustments
CalBank’s CEO, Carl Asem, highlighted the bank’s Q3 results as a balanced mix of growth and intentional adjustments.
While fees and commissions jumped an impressive 97.4% year-on-year, net interest income took a 24.7% dip.
This was due to a strategic slowdown in new loan disbursements amid rising interest rates, leading to a 9.8% drop in overall operating income from last year. Recoveries Strengthen Financial Health
The bank has shown remarkable success in loan recoveries, bringing in GHS712.5 million from previously impaired loans this year.
This achievement is largely attributed to robust recovery efforts within sectors like hospitality, construction, and services, backed by legal action and collateral liquidation to recover funds. Cost Management: Staying Ahead of Inflation
Despite economic challenges such as inflation and currency depreciation, CalBank kept operating expenses under control with a modest increase of 9.3%.
Staff costs rose by 9.7%, demonstrating the bank’s careful cost management strategy in turbulent economic times. Profit and Deposit Growth Drive Strong Quarter
One of the most significant highlights of Q3 was CalBank’s after-tax profit, which rose to GHS223.9 million—a 26.1% year-on-year increase and a 41.8% jump from its mid-year earnings. Deposits grew by 26.5%, reaching GHS10.1 billion, up from GHS7.5 billion last year, thanks to a strong retail strategy that continues to attract individuals and SMEs.
The Current and Savings Account (CASA) component now makes up over 80% of total deposits. Digital Banking Leads Deposit Growth
CalBank’s impressive deposit expansion can be attributed to its digital transformation efforts. With an enhanced agent network and optimized digital channels, more customers are using CalBank’s mobile and online platforms, which have become known for their reliability and security. Growth Strategy and Digital Expansion
CalBank’s five-year plan prioritizes digital expansion and a focus on SME support.
In Q3 alone, the bank registered 996 new agents, bringing the total to 1,886 agents across all 16 regions.
By year-end, the bank aims to further strengthen its digital presence, positioning itself as a leader in digital payments in Ghana. Commitment to SME Support and Risk Management
With a focus on SME lending and low-cost accounts, CalBank’s deposit strategy is geared towards sustainable growth and community development.
The bank emphasizes risk management and resilience to drive financial strength and long-term stability. Leadership’s Take on CalBank’s Future
Reflecting on the Q3 results, CEO Carl Asem praised the bank’s resilience and applauded the dedication of management and the board in driving CalBank’s positive trajectory. “Our Q3 results are a testament to CalBank’s resilience,” he remarked, thanking the leadership team for their vision and hard work.
Board Chairman Joseph Mensah shared in the optimism, highlighting CalBank’s strong fundamentals.
“The bank’s fundamentals are stronger than ever. We’re poised for success,” he stated, underscoring CalBank’s restructuring efforts and growth momentum.
As CalBank continues its digital expansion and SME support, it stands well-positioned for sustained growth and influence in Ghana’s banking sector.
The Executive Director for Retail and Business Banking at Absa Bank Ghana, Mr Kobla Nyaletey, has urged Ghanaian companies to increase their support for young businesses, even if those ventures initially lack polished standards.
Speaking at the E-Jobs4All Development Summit held October 22-27 at Accra’s International Conference Centre, Mr Nyaletey highlighted the importance of long-term investment in local entrepreneurs to foster sustainable quality and global competitiveness.
“This may require paying a bit more for local products, but the benefit to the country’s economy will be significant,” he said.
The summit, themed “Igniting Futures: Entrepreneurship, Innovation, and Peace for Sustainable Development,” provided a platform for business leaders, policymakers, and emerging entrepreneurs to connect and collaborate.
Mr Nyaletey noted that young businesses need structured guidance that fosters growth without stifling creativity, encouraging mentors and investors to offer flexible support rather than imposing rigid frameworks.
Overly structured requirements, he argued, could constrain the innovation that drives new ideas and market growth.
In discussing financial support, Nyaletey underscored the need for a variety of funding options—from grants and patient capital to affordable loans tailored to each stage of business development.
He pointed to Absa’s collateral-free SME loan program, offered at a 10% annual interest rate, which has helped nearly 7,000 micro, small, and medium-sized enterprises (MSMEs) and generated over 49,000 jobs.
The six-day E-Jobs4All summit also included development dialogues, training, and pitch competitions, all designed to support youth-led economic growth in Ghana.
Ghana’s insurance industry reported a robust 22% growth in investment assets in 2023, bringing total assets to GH₵10.5 billion, up from GH₵8.6 billion in 2022, according to the Bank of Ghana’s 2023 Financial Stability Review.
The sector’s resilience amid challenges like the COVID-19 pandemic and the domestic debt exchange program (DDEP) underscores its adaptability to Ghana’s evolving economic landscape.
The life insurance sub-sector led the way, with investment assets reaching GH₵7.0 billion by the end of December 2023, more than double the GH₵3.5 billion held by the non-life segment.
The industry continues to favour fixed-income assets across both life and non-life portfolios, though significant shifts in investment composition have emerged.
Notably, government securities have seen a sharp decrease within insurers’ investment portfolios, reflecting the impact of the DDEP.
In the non-life sector, holdings in government securities dropped 13%, bringing their share down to 27% from 38% in 2022.
Fixed deposits now comprise 23% of this sector’s portfolio, with listed securities and real estate contributing 27% and 19%, respectively.
The life insurance sector also scaled back on government securities, reducing their share to 40% from 49% the previous year.
This decline was counterbalanced by an increased allocation to real estate, which now represents 23% of the sector’s portfolio, alongside a rise in fixed deposits, now comprising 21% of total assets.
These adjustments reflect a strategic diversification in response to market dynamics, signalling the sector’s adaptability and commitment to providing financial stability for policyholders.
As the Ghanaian insurance industry expands its asset base and reallocates investments, it appears well-positioned for sustainable growth in a complex economic environment.
According to the review, thd insurance sector maintained a steady insurance penetration rate of approximately 1.0% over the last five years.
Yet, some industry leaders are challenging the traditional approach to measuring insurance penetration, suggesting it may not fully capture the sector’s potential growth trajectory.
The National Insurance Commission (NIC) projects that digital initiatives, public education, innovation, and stronger protections for policyholders under the Insurance Act of 2021 will help drive industry expansion in the coming years.
Ghana’s insurance industry has proven resilient amid global turbulence, navigating challenges from the COVID-19 pandemic to domestic fiscal reforms, including the Domestic Debt Exchange Programme.
The report attributes this stability to improved regulation, increased digitalisation, and enhanced oversight.
The rise of InsurTech firms, ongoing digital transformation, and the NIC’s regulatory enhancements underscore the industry’s commitment to modernisation, the report notes.
The NIC is developing a complaints management system to better handle feedback, allowing policyholders and prospective clients to influence industry standards.
In financial metrics, the Ghanaian insurance sector showed substantial growth, with the industry’s equity base jumping 24% in 2023, from GH₵4.45 billion in 2022 to GH₵5.52 billion in 2023.
This gain highlights the sector’s financial resilience amid economic volatility and underscores its ability to capitalise on growth opportunities.
The insurance industry also maintained a Capital Adequacy Ratio (CAR) above the 150% regulatory benchmark, showcasing its financial health.
However, the report notes that the life insurance segment experienced a slight CAR decline, primarily due to necessary risk adjustments and the impact of domestic debt restructuring.
These changes, while lowering CAR, are seen as critical for the sector’s long-term stability amid shifting economic conditions.
The director of the Institute of Statistical, Social, and Economic Research (ISSER), Professor Peter Quartey, has wondered: “Will a 24-hour economy serve as the solution or is it premature?” suggesting: “What about incorporating it into a long-term development plan?”
Also, Professor Quartey noted: “The argument is, will a 24-hour economy bring higher GDP and jobs, or is it rather a goal we should aim for in the long term?”
The 24-hour economy proposal was put forward by former President John Mahama, who is the flagbearer of the main opposition National Democratic Congress.
Speaking on the proposal, Professor Quartey pointed out that: “Limited energy supply to power all sectors in 24 hours, especially manufacturing,” risks hindering industries’ ability to operate continuously, especially at competitive levels within the sub-region.
On security, he said with extended hours, ensuring the safety of night workers would require “adequate security personnel to protect those working late into the night,” adding that this would need significant investment in security infrastructure.
Concerning market demand and competitiveness, Prof Quartey wondered if sufficient demand exists to sustain 24-hour operations, especially in sectors like manufacturing.
“Will there be demand if factories operate 24 hours?” he questioned, adding that Ghana’s industries must also be competitive regionally.
Additionally, Prof Quartey raised doubts about the availability of essential infrastructure, including water and road networks, to support continuous operations. “Do we have adequate infrastructure?” he asked, pointing out that without necessary improvements, a 24-hour economy could strain existing systems.
He said aligning manifesto promises with a pragmatic, long-term development strategy is essential and urged policymakers to carefully evaluate the nation’s infrastructure and security readiness, energy capacity, and market demands before committing to a 24-hour economy.
“This approach needs to be grounded in a robust, long-term plan if we are to realise sustainable economic growth,” he said.
President Nana Addo Dankwa Akufo-Addo has signed the Ghana Shippers’ Authority Act 2024, a transformative piece of legislation aimed at strengthening the Ghana Shippers’ Authority (GSA) and enhancing the regulation of Ghana’s commercial shipping sector.
This legislation, passed by Parliament on July 29, 2024, was formally signed into law on Friday, October 18, marking a pivotal development in the GSA’s 50th anniversary year.
The Ghana Shippers’ Authority Act 2024 significantly broadens the GSA’s regulatory powers, allowing it to oversee all modes of transport—sea, air, and land.
The Act’s provisions are expected to foster a fair, efficient, and competitive shipping environment, a milestone that positions Ghana’s shipping and logistics sector to meet global standards.
With this strengthened regulatory mandate, the GSA aims to enhance transparency in pricing and fairness in service delivery, boosting Ghana’s appeal as a preferred destination for international trade.
Established in 1974 as the Ghana Shippers’ Council, the GSA was rebranded in 1998 to better reflect its enhanced regulatory responsibilities.
Over the years, the GSA has championed policies that promote a balanced trade environment, working to create conditions for a sustainable and competitive commercial shipping landscape in Ghana.
This new Act underscores the GSA’s commitment to achieving a resilient trade ecosystem that benefits all stakeholders, including shipping, logistics, and other trade-related sectors.
In light of the new Act, the GSA has launched a nationwide sensitization campaign to inform stakeholders about their rights and responsibilities under the new regulatory framework.
The Authority is also actively engaging stakeholders to contribute to the drafting of a Legislative Instrument (L.I.) that will support the Act’s implementation.
The GSA has called on all involved parties to participate in shaping this critical instrument, which will play a key role in operationalizing the Act for the good of the sector and the nation.
Management of GSA made this announcement in a statement dated October 31, 2024.
The Institute of Statistical, Social, and Economic Research (ISSER) has recommended against an immediate repeal of the E-levy and COVID-19 levy, cautioning that a sudden removal could disrupt the nation’s ongoing IMF-backed economic recovery plan.
In its recent State of the Ghanaian Economy Report, ISSER proposed a phased elimination of these levies as part of the 2025 budget to avoid undermining fiscal stability.
Together, the E-levy and COVID-19 levy are projected to generate over GH¢5 billion in revenue, with GH¢2.1 billion from the E-levy and GH¢3.172 billion from the COVID-19 levy.
“Scrap E-levy (GH¢2.1bn), COVID-19 Levy (GH¢3.172bn), Betting Tax – What is the alternative?” the report questions, urging policymakers to carefully evaluate the timing and impact of eliminating these revenue streams, which are essential for meeting Ghana’s IMF program obligations.
ISSER’s stance reflects a nuanced approach to balancing public relief with fiscal discipline. In the current economic climate—marked by inflationary pressures and a depreciating currency—these levies are seen as critical sources of revenue.
The report emphasises that any reduction should be aligned with broader fiscal policies to sustain economic stability.
The report also pointed to the Betting Tax, suggesting it could be developed as an alternative revenue source, though its specifics remain undefined.
ISSER advises the government to explore such options to create a sustainable revenue framework that eventually replaces the E-levy and COVID-19 levy without jeopardising IMF commitments.
