In its annual report on credit activities, the Bank of Ghana said it identified the lack of credit checks in the appraisal and disbursement of digital loans provided by some financial institutions through mobile money platforms.
To mitigate the potential risks of adverse selection in the appraisal of these types of loans, the central bank said it began an engagement with stakeholders with recommendations of integrating the Loan Origination Software of lenders with credit bureaus.
The Bank of Ghana also saw significant improvement in the quality of data submitted to credit bureaux and improvement in the submission of data relating to digital loans.
A total of 16 Microfinance Institutions and 6 Rural and Community Banks were cautioned for failing to subscribe to the services of credit bureaus or submitting data to credit bureaus.
This was an improvement over 2022 where 60 RCBs and 11 MFIs were cautioned for various breaches.
These sanctions have led to an improvement in financial institutions’ compliance with the Credit Reporting Act and Regulations.
In 2023 the number of electronic money fraud incidents recorded was 14,655, representing a 20% rise as compared to 12,166 cases recorded in 2022, the Bank of Ghana’s fraud report of 2023 has indicated.
It says although there was a 20% increase in incident occurrence, the corresponding monetary loss was GH¢16 million in 2023 as compared to GH¢26 million in 2022.
Thus, in percentage terms, the year 2023 recorded a decline in loss value of 38% compared to 2022.
The report noted that the month of December 2023 saw the highest loss value for the year 2023, which may be characterised by the uptick in activities during the festive season, presenting opportunities for fraudsters to perpetuate their schemes.
Due to the increasing fraud cases recorded in the sub-sector, the central bank said it has become necessary for stakeholders to increase awareness through sensitisation programmes, strengthening security measures and adopting proactive initiatives in dealing with fraud in the sub-sector, especially during festive seasons.
By the end of the year 2023, electronic customer accounts had reached 65.6 million with 22.8 million being active users.
In terms of the volume of transactions, the year 2023 recorded 6.8 billion with a corresponding transaction value of GH¢1.9 trillion.
The year 2022, however, recorded a value of GH¢1.0 trillion in e-money transactions with the volume of transactions standing at 5.0 billion.
This indicates a 90% increase in the value of e-money transactions and an increase of 36% in volume of e-money transactions from 2022 to 2023.
The ban said the number of electronic fraud incidents reported is primarily social engineering methods deployed by the fraudsters.
“It is apparent that broadly the fraud trend is keeping pace with the evolving financial landscape. New fraud types are emerging and unfortunately, some staff of banks/SDIs who are supposed to safeguard the financial systems are being compromised,” the report noted.
It added: “Banks and SDIs are, therefore, mandated to bolster their internal control measures to reduce fraud in the banking sector to the barest minimum possible and continue to promote trust and confidence in the banking system to ensure the stability of the sector.”
As of 2022, the Electricity Company of Ghana’s revenue losses had risen to GH¢9.7 billion, the Africa Centre for Energy Policy (ACEP) has revealed.
It was GH¢295 million in 2017.
ACEP’s Policy Lead on petroleum and conventional energy, Mr Kodzo Yaotse, told journalists at a press conference last week that: “The growing fiscal burden imposed on the economy by ECG’s poor performance has become a ticking time bomb that can undermine the progress made after the domestic and international debt restructuring to keep Ghana solvent.”
He warned: “With the level of debt accumulation and the intervention required of the state, it is just a matter of time before Ghana is plunged into another debt crisis.”
Mr Yaotse pointed out that: “With IPP debt mounting and gas suppliers and transporters demanding payments, the pressure on the government to sacrifice social investment is high.”
He believes the top management of ECG must be removed to salvage what is left of the company.
“The political lethargy to enable ECG to deliver value to the people of Ghana continues to hurt Ghana’s budget and, by extension, development efforts,” he noted.
He said: “The Energy Sector Recovery Programme (ESRP) estimates that realised power sector shortfalls between 2019 and 2023 were about US$8.25 billion.”
“This is a sheer waste of public resources that cannot persist in light of the above.”
Data collated from the three sub-sectors – banks, Specialised Deposit-Taking Institutions (SDIs) and Payment Service Providers (PSPs) – indicated that the count of fraud cases increased to 15,865 in 2023 from 15,164 in 2022, reflecting a 5% rise, according to the Bank of Ghana’s annual Fraud Report.
The report, which seeks to create awareness of fraud occurrences and trends identified within the reporting year with the view to promoting the soundness and integrity of the banking system, noted that these cases corresponded to a total loss value of approximately GH¢88 million in 2023 as compared to GH¢82 million in 2022, indicating an increase of about 7%.
Analysis of the 2023 data showed that fraud heightened in fraudulent withdrawals from victims’ accounts, cyber/email fraud, and cash theft (cash suppression).
Another area of concern, the report indicated, is SIM swap-related fraud, where SIM numbers linked to banking accounts are fraudulently taken over and monies subsequently withdrawn from the accounts.
This form of fraud, the central bank explained, targets individuals who have banking applications on their mobile phones and have linked their bank accounts to mobile money wallets.
While attempted fraud cases in the banking and SDI sectors declined “sharply” by 59% in 2023 compared to 2022, the total loss value associated with these cases stood at approximately GH¢72 million, a 29% increase over the 2022 figure of GH¢56 million recorded.
The Bank of Ghana said the “sharp increase” in the loss value was influenced by outlier fraud cases involving foreign currencies, which when converted to cedi, ballooned the 2023 attempted fraud value at a loss.
The PSP sector also recorded a loss of GH¢16 million involving 14,655 cases in 2023. Although the loss value recorded in 2023 represented a 38% decline compared to the GH¢26 million recorded in the previous year, the incidents showed a 20% increase compared to the 12,166 cases in 2022.
Banks and SDIs recorded higher loss values whereas the PSPs recorded a decline in the loss value for the year under review.
Generally, bank and SDI sectors recorded increases in the loss values as a result of fraud, while the PSPs sector saw some decline.
The BoG said it continues to engage institutions with high incidences of fraud to develop action plans to address such incidences in the industry.
The central bank said it has also strengthened its engagement with relevant stakeholders to enhance collaboration in the fight against cyber-related fraud.
The report has also highlighted some directives by the central bank to banks, SDIs and PSPs which, if implemented, will help reduce the incidence of fraud in the sector.
Deputy Lands Minister Mr Akwasi Konadu paid a working visit to the Eastern Regional Lands Commission last week, to familiarize himself with the commission’s activities.
During his meeting with the management of the Commission in the Eastern Regional capital, Koforidua, Mr. Konadu emphasized his commitment to identifying key challenges hindering progress and helping to find lasting solutions to them.
The Regional Lands Officer, Mr. Issah Mahama, outlined major reforms aimed at developing effective land administration through decentralization and digitalization.
He highlighted pressing challenges, including Land Encroachment, Insufficient Office Space, and Expanding facilities to accommodate staff and operations.
Also, Stool Lands Boundaries and the drive to Resolve disputes and define traditional land ownership.
Mr. Konadu further assured the Commission that these issues would be promptly addressed to enhance work efficiency at all levels.
The Deputy Minister was accompanied on the working visit by the Technical Director of Forestry, Mr Joseph Osiakwan, Director PPME, Mr Matthew Ababio, and other Officers of the Ministry.
The American Chamber of Commerce and the Spain-Ghana Chamber of Commerce have called on the Ghana Revenue Authority (GRA) to urgently address the smuggling of canned and PET soft drinks from neighbouring countries into Ghana.
In a joint statement, the two business chambers warned that the illegal trade threatens the survival of legitimate beverage manufacturers and undermines government revenue by bypassing taxes.
They highlighted that many of these smuggled drinks are sold without tax stamps and at prices significantly below the market rate, benefiting those who evade customs duties, excise taxes, and other levies.
The chambers also raised concerns over health and safety, noting that the smuggled drinks bypass regulatory checks by the Food and Drugs Authority (FDA).
“The FDA cannot verify the quality of these beverages, as they bypass established health regulatory processes,” the statement read, adding that authorised dealers suffer reputational damage when inferior products are sold as legitimate brands.”
The smuggling of Coca-Cola products, in particular, has been identified as a major concern.
The business groups urged the GRA to take swift action to stop the influx of these beverages.
They also called on the FDA, local authorities, and market leaders in key regions like Accra, Kumasi, Tamale, and Takoradi to step up efforts to protect brands, preserve government revenue, and safeguard jobs in the beverage industry.
Additionally, the chambers appealed to the Ministry of Trade and Industry, through the Ghana International Trade Commission (GITC), to address what they described as “unfair trade practices.”
They argued that this action is crucial to promoting investment in Ghana’s manufacturing sector and ensuring fair competition for businesses.
The chambers stressed that beverage smuggling not only harms legitimate businesses and government revenue but also poses risks to consumer health.
They called for coordinated efforts from all stakeholders to tackle the issue effectively.
The Ministry of Finance has touted Ghana’s economic recovery as remarkable amidst second quarter Gross Domestic Product (GDP) growth achieved.
According to Ghana Statistical Service (GSS), the debt-ridden country recorded 6.9 percent growth in economic activities within the first six months of 2024.
The unexpected growth comes at a time the country faces weakened forex rate, debt restructuring, high cost of borrowing and doing business and declining foreign direct investments. To this, the Ministry terms Ghana’s economic trajectory as ‘fast recovering’.
“The economy’s robust recovery is in response to the macroeconomic stability and growth interventions that the government is pursuing under our IMF-supported Post-COVID-19 Programme for Economic Growth (PC-PEG)”, a statement released by the Finance ministry posited. “The 6.9% growth recorded in Q2 2024 is the highest quarterly GDP growth recorded in the past 5 years.”
It said overall real GDP growth for the first half of 2024 “rebounded strongly, with year-on-year GDP growth averaging 5.8% for the period, significantly higher than the 2.9% recorded in the same period in 2023.”
According to the ministry, the 2024 first half-year growth of 5.8% is supported by a 4.8% expansion in the economy in Q1 2024 and 6.9% in Q2 2024.
“Non-oil GDP growth for the first half of 2024 was equally robust with a growth rate of 5.6%, significantly higher than the 3.8% recorded in the first half year of 2023. The first half-year economic expansion is supported by Q1 growth of 4.3% and Q2 growth of 7.0%.
“It is instructive to note that the 5.8% overall growth for the first half of 2024 is significantly higher than the 1.5% growth target for 2024 which was later revised to 3.1% during the 2024 Mid-Year Review of Fiscal Policy presented in Parliament in July 2024.”
The ministry further related that, “Given that Ghana completed its domestic debt restructuring programme in 2023 and is currently in the process of completing its external debt restructuring programme, the growth performance for the first half-year of 2024 is much higher than the growth recorded by countries which have undergone similar debt restructuring programmes in the past.”
A case in point is Jamaica, the statement cited, “Which recorded average real GDP growth of 1%-2% for about a decade post its debt restructuring.”
“All three sectors of the economy, namely agriculture, industry, and services contributed to the robust growth recorded in the first half of 2024: The Industry sector recorded an average growth of 8.0% in H1 2024 up from the contraction of 2.0% recorded in H1 of 2023. The 8% growth is supported by growth of 6.8% in Q1 and 9.3% in Q2.”
It noted that the sector’s “strong” recovery in the first half of 2024 was driven mainly by growth recorded in the following sub-sectors: 13.9% growth in Mining and Quarrying supported by 12.9% growth in Q1 and 14.8% in Q2; 9.9% growth in Oil & Gas supported by 13.8% growth in Q1 and 5.8% in Q2; 8.3% growth in Construction supported by 8.2% growth in Q1 and 8.4% in Q2; and 2.8% growth in Manufacturing supported by 2.0% growth in Q1 and 3.9% in Q2.
Also, it noted that the agriculture sector expanded by 5.0% in the first half of 2024 supported by Q1 growth of 4.7% and Q2 growth of 5.4%.
“The agricultural sub-sectors that contributed the most to growth in the sector for the first half-year of 2024 include 5.6% growth in the Crops sub-sector underpinned by 5.0% growth in Q1 and 6.4% in Q2; 4.7% growth in the Fishing subsector supported by 4.7% growth in Q1 and 4.7% in Q2; and 4.7% growth in the Livestock subsector supported by 4.6% growth in Q1 and 4.7% in Q2.”
The Services sector, the ministry added, “Expanded by 4.4% in H1 2024 supported by growth of 3.2% in Q1 and 5.8% in Q2.”
It lists the Services sub-sectors that contributed the most to the H1 2024 growth as “15.3% growth in Information and Communication underpinned by 17.9% growth in Q1 and 12.8% in Q2; 7.4% growth in the Accommodation & Food Service Activities subsector supported by 7.9% growth in Q1 and 4.9% in Q2; 6.5% growth in the Financial & Insurance Activities subsector supported by 5.5% growth in Q1 and 7.6% in Q2; 3.4% growth in the Transport & Storage sub-sector supported by 3.3% in Q1 and 3.6% in Q2; 2.9% growth in the Real Estate sub-sector supported by 3.9% growth in Q1 and 2.3% in Q2; 2.5% growth in the Professional, Admin & Support Service activities sub-sector underpinned by 4.1% growth in Q1 and 1.9% in Q2; and 2.8% growth in the Trade, Repair of Vehicles, Household Goods sub-sector underpinned by 2.5% in Q1 and 3.2% in Q2.”
The ministry noted that the government “will continue to prioritise the restoration and sustenance of macroeconomic stability, which is necessary for the promotion of our inclusive growth agenda.”
It said that it is expected that the implementation of the government’s growth strategy including the Planting for Food and Jobs Phase 2 Programme, the SME Growth and Opportunity Programme, the 1 District 1 Factory Programme, the Economic Enclave Programme under the Ghana CARES Programme, “will further consolidate the gains we are making in economic recovery to improve the living conditions of the Ghanaian people.”
In a shocking revelation, it has emerged that Deutsche Bank of Germany is Ghana’s leading creditor to a tune of US$3.5 billion.
The German bank places top of Ghana’s commonly known bilateral and multilateral creditors such as China, the World Bank, and the International Monetary Fund.
According to Imani Africa’s data, the investment banking company have mainly committed to heavy infrastructure projects in the country. The New Kejetia Market Project and the Western Railway Line are some of the infrastructure projects funded by Deutsche Bank.
“Deutsche Bank’s lending commitment to Ghana is thus roughly double that of China and nearly equivalent to all the money Ghana has borrowed from countries richer than itself,” Vice President of IMANI Africa, Bright Simons revealed.
He added that “Deutsche Bank has been busy! From funding the Kejetia market redevelopment (largest such project in West Africa) and various roads to financing trauma hospitals and attempts to fix fast-growing Tamale’s water supply problems, Deutsche Bank’s bet on Ghana was once massive.”
The two multilateral creditors; the World Bank and the IMF come after Deutsche Bank.
World Bank has credited US$1.7 billion to Ghana although it has committed a total of US$3.9 billion while the IMF has also credited US$2.3 billion to the country.
The much-talked-about China has also loaned US$1.7 billion while two leading Eurobond investors; Black Rock and Franklin Templeton currently have US$1 million and US$30 million credits respectively to Ghana although they were higher in previous years.
“BlackRock is believed by some to be Ghana’s largest Eurobond investor. Yet, even at the peak of its holdings in 2020, it carried roughly $630 million. By May 2023, it was reporting just a little over $1 million in holdings of Ghanaian Eurobonds. It appears to have sold most of its holdings over time,” the Vice President of IMANI emphasized.
He added that “As of July 2024, Franklin Templeton held more than $30 million of Ghanaian government debt, a steep fall from the $1 billion portfolio it held just a few years ago.”
Although the Deutsche Bank has provided significant funds to finance critical infrastructure projects in the country, experts argue that the inefficiencies in the execution of these projects combined with high-interest cost and increasing debt burden, raise concerns about the sustainability of Ghana’s financial and debt stability.
It notes that prices will, however, remain high relative to the pre-spike level
With the onset of a new crop season portending larger crop sizes in Ghana and Cote d’Ivoire, the “cocoa market is expected to be calm and cocoa prices could potentially decrease,” the mid-year Monetary Policy Report of the Bank of Ghana says.
It notes that prices will, however, remain high relative to the pre-spike level.
Also, it noted that the ongoing geopolitical tensions in the Middle East and the expectation of continued production restraint by some OPEC+ producers may continue to lend some support to oil.
Gold prices, the report projected, “may suffer losses as we move closer to possible Fed rate cuts in the second half of the year.”
In its report, the central bank said prices of Ghana’s key export commodities increased on the global commodities market as of the end of June 2024.
It said the weighted average price of the three major commodities exported by Ghana (cocoa, gold, and crude oil) increased in the month of June 2024.
The index rose to 196.68 from 190.74 in the previous month, representing an increase of 3.1 per cent.
The increase was on account of a rise in the cocoa and crude oil sub-indices, which was enough to outweigh the fall in the gold sub-index.
The cocoa sub-index grew by 11.1 per cent while the crude oil sub-index remained almost unchanged at 0.01 per cent and the gold sub-index fell by 1.1 per cent.
It noted that cocoa futures bounced back in June, reaching US$9,022.6 per tonne after a drop of 19.2 per cent in May.
Tight supply, spurred by extreme weather conditions and diseases amid increasing demand, supported the price increase, the report explained.
It said from January to June 2024, cocoa prices soared by 113.02 per cent, mainly on the back of tight supply.
Also, crude oil prices were broadly stable in June, gaining just 0.01 per cent to settle at an average price of US$83.01 per barrel.
The prices were supported by escalating geopolitical tension in Europe and the Middle East, notwithstanding OPEC+’s decision to boost supply later in the year, the report added.
It noted that since January 2024, crude oil prices have increased by 7.4 per cent, mainly due to concerns about supply disruptions due to geopolitical tensions and the planned output cut by OPEC+.
Spot gold dropped marginally by 1.1 per cent to close at an average price of US$2,325.34 per fine ounce in June 2024.
Gold prices were weighed down by a rising US dollar and increasing Treasury yields but losses were moderated by safe-haven demand amid tensions in the Middle East and rising bets that the U.S. Federal Reserve might reduce interest rates later in the year.
From the beginning of the year to date, gold prices have increased by 14.2 per cent, largely explained by the expectation of rate cuts by the Fed, and geopolitical tension that boosted the safe-haven appeal of the metal.
In 2018, Newmont commissioned an influx study to determine the potential impact of migration on the Ahafo area
Newmont Corporation’s Ahafo North project has begun implementing an influx management plan, including the construction of a divisional police headquarters at Duayaw Nkwanta in the Ahafo region.
This initiative, valued at GHS 4.1 million (approximately US$250,000), aims to address anticipated changes in local infrastructure and social dynamics due to human migration following the construction and operation of the Ahafo North mine.
In 2018, Newmont commissioned an influx study to determine the potential impact of migration on the Ahafo area.
This study involved extensive consultations with host communities, governmental agencies, and development experts.
Based on the study’s recommendations, the company developed the Ahafo North influx management plan to meet the needs of the expected population increase.
The plan includes provisions for security infrastructure, health, water, and sanitation facilities.
The construction of the divisional police headquarters addresses the study’s security recommendations and aims to enhance safety in the Ahafo region to support economic activities.
Mr. Abdul Rahman Amoadu, Managing Director for Newmont’s business in Africa, stated: “Security remains an important enabler for development, and Newmont’s investment in the divisional police headquarters will help build the capacity of our police service to maintain law and order as we catalyse economic development through our investments.”
The Ahafo North project currently employs over 1,700 Ghanaians directly and indirectly through contractors and creates local procurement opportunities for Ghanaian businesses, particularly those within the project’s host communities.
