The Ghana Plastic Manufacturers Association (GPMA) has voiced strong opposition to the government’s new 5% Excise Tax on all locally manufactured plastic products, calling for its immediate suspension and for a broader stakeholder consultation.
At a press conference held last week, the President of GPMA, Mr Ebo Botchwey, expressed frustration over the lack of response from the Ministry of Finance.
The GPMA had previously requested a delay in the tax’s implementation to allow for better consultation, but no feedback has been received since their formal letter on April 24, 2024.
Despite the pending request, the Ghana Revenue Authority (GRA) has begun issuing demand notices to plastic manufacturers, compelling them to comply with the new tax from June 21, 2024, or face penalties and potential shutdowns.
The GPMA has called on the GRA to halt these actions until the tax’s ambiguities are clarified.
The GPMA highlighted the concurrent burden of an existing 10% Environmental Excise Tax on selected plastic materials at entry ports, emphasizing that the new tax would be “obnoxious and retrogressive” for the manufacturing sector.
The Association warned that this tax would significantly impact various industries reliant on plastic products, including food and beverage, retail, water, and pharmaceuticals, ultimately leading to higher consumer prices.
The GPMA also underscored the significant contributions of the plastic industry to Ghana’s economy, including direct employment to over 39,260 people, generating millions of jobs in plastic waste recycling and the sachet and bottled water industry.
He noted that the industry’s substantial payments in import duties, electricity bills, and corporate taxes were highlighted, along with concerns about illegal sales of plastic raw materials by Free Zones Companies.
The Association reiterated its position, calling for the suspension of the 5% Excise Tax, comprehensive stakeholder consultation, and a clear definition of locally manufactured plastic products to avoid ambiguity.
The GPMA also appealed to Vice President Dr. Mahamudu Bawumia to intervene, warning that the tax would lead to severe hardships for ordinary Ghanaians.
In conclusion, the GPMA issued an ultimatum, demanding a response from the government within one week, failing which they would consider a week-long shutdown of all plastic manufacturing operations, potentially sending over 30,000 workers home.
Africa presents a compelling investment destination for Japanese firms, with high growth potential and the African Development Bank’s strong support to manage risks, African Development Bank Group leaders have stressed at the recent Japan-Africa Business Forum in Tokyo.
“Africa has huge private sector opportunities. The continent offers some of the highest returns globally,” said Prof. Kevin Chika Urama, Bank Group Chief Economist and Vice President, in a presentation highlighting Africa’s abundant renewable energy potential, and the need for strategic investments in green minerals and value addition. “Smart investments in Africa are good business — doing well by doing good,” he stressed.
Dr. Kevin Kariuki, Vice President for Power, Energy, Climate and Green Growth, highlighted Japan’s competitive advantage in geothermal technology. “90% of all the turbines in Kenya are from Japan, starting with Mitsubishi,” he noted. Kariuki also positioned Africa as a solution to Europe’s energy challenges, with planned interconnections to export power and hydrogen.
The forum was organized by the African Development Bank and Keizai Doyukai, the Japanese Association of Corporate Executives, with support from Japan’s Ministry of Finance.
Bank leaders underscored the institution’s commitment to making investing in Africa more attractive. “We have facilities within the Bank to try and de-risk these projects,” said Kariuki, citing the Sustainable Energy Fund for Africa’s (SEFA) support for the Kom Ombo and Kairouan solar projects amid escalating costs.
Kazuko Nagura from Japan’s Ministry of Economy, Trade and Industry (METI) announced plans to hold the third Japan-Africa Public-Private Economic Forum later this year. The event will offer Japanese companies an opportunity to travel to Africa to undertake business development and networking. Nagura also made reference to the ministry’s efforts to support Japanese business ventures in Africa such as theAfDX program and Expo 2025 Osaka, Kansai planned for next year.
During a panel discussion on investing in African startups, Vice President for Private Sector, Infrastructure and Industrialization Solomon Quaynor stressed the potential of the Fourth Industrial Revolution to drive productivity improvements and deliver services to the base of the pyramid. “The idea is to use technology to increase profitability through efficiency, so you’re delivering value for which all segments of society are actually paying,” he explained.
Quaynor highlighted the Bank’s initiatives to develop Africa’s human capital and startup ecosystem, including partnerships with tech giants: “We have a program with Intel to train nine million Africans in artificial intelligence and a coding for employment program to upskill up to 50 million youth.” He said the Youth Entrepreneurship Investment Banks(YEIBs) will further support tech-enabled companies and enhance the collaboration with & Capital, a new Africa-focused impact fund endorsed by Keizai Doyukai.
Misako Takahashi, Deputy Director-General of the Middle Eastern and African Affairs Bureau at Japan’s Ministry of Foreign Affairs, highlighted TICAD as a platform for co-creating innovative solutions for growth and to discuss Japan and Africa’s shared future.
Yacine Fal, the Special Representative of the African Development Bank’s President to the Africa Investment Forum, showcased the platform’s role as a premier conduit for investment into Africa’s agriculture, energy, transport, healthcare and ICT sectors, among others. She noted the successful participation of Japanese investors and business leaders including those from Keizai Doyukai at the 2023 Market Days held last November in Marrakech.
Keizai Doyukai, and the African Development Bank reaffirmed their commitment to work together to strengthen business ties between Japan and African countries. The two jointly organized the business forum to increase interest in African business and promote a better understanding of the Japanese private sector ahead of TICAD 9.
The Ministry of Lands and Natural Resources has called for calm and restraint amidst escalating tensions involving Adamus Resources Limited, a mining company operating in the Western Region of Ghana.
The appeal follows recent disputes over the company’s management, particularly concerning the interim Management Committee (IMC) established by the Accra High Court of Justice (Commercial Division 7) on July 27, 2023, which has faced obstruction in executing its duties.
On Wednesday, April 17, 2024, the IMC was barred by the company’s security personnel and police officers at the main entrance of Adamus Resources Limited’s operational headquarters in the Ellembelle District.
This prevented the committee from entering the premises to familiarize itself with the company’s operations and interact with the workers.
In a statement released on Thursday, June 27, the Ministry emphasized the necessity of peaceful dialogue and negotiations to resolve the ongoing conflicts.
The Ministry urged all parties involved to avoid actions that could escalate the situation and jeopardize the safety and well-being of the affected communities.
The Ministry also clarified that the government is not a party to the ongoing legal tussle and does not support any side in the dispute. It emphasized the importance of respecting the judicial process and allowing the courts to resolve the issue peacefully.
In its appeal for calm and restraint, the Ministry reiterated its commitment to ensuring that mining activities in Ghana adhere to legal and ethical standards.
It called on all stakeholders to cooperate in finding a resolution that promotes peace and stability in the region.
“The Ministry has faith in the courts of our country to deal with all the matters in issue. The Ministry will, however, take the necessary measures to engage the parties to attempt an amicable resolution of the matter.”
“In the meantime, the Ministry calls on all parties to refrain from dealing with the matter in the media or taking such actions that could prejudice the fair adjudication of the matters in court. The Ministry, also, urges the parties to refrain from actions that tend to jeopardize the smooth running of the Company, pending the determination of the matters before the Court,” an excerpt of the statement said.
The People’s National Party (PNP) has called for the dissolution of the Ghana Union of Traders Association (GUTA).
The party is accusing the union of monopolizing the retail market and driving up prices, which they claim is contributing significantly to the country’s inflation woes.
In a statement issued last week, signed by the its Leader and National Chairman, Janet Nabla, the PNP called on Ghanaians to kick out the union.
“It is time for Ghanaians to take a stand and kick GUTA out of our markets,” the statement said.
According to the party, GUTA and its members have been abusing the free market economy to increase prices, contributing significantly to the inflation we are now experiencing in Ghana.
The PNP highlighted the price disparity as a clear indication of GUTA’s exploitative practices.
“For example, a chair that costs GHS 68 at China Mall is sold for about GHS 175 by GUTA members,” the party pointed out.
The PNP argued that GUTA’s anger towards the Ministry of Agriculture for selling foodstuffs at lower prices while its members continue to inflate prices, is unacceptable.
“GUTA’s actions are eroding the purchasing power of Ghanaians,” the PNP continued, “and it is clear that the union was formed with the intent to destroy this purchasing power. Therefore, it is imperative that we dissolve the union.”
The PNP also accused GUTA of opposing the Ministry of Trade’s efforts to review monopoly laws, which currently restrict retail trade to Ghanaian businesses.
“If they have nothing to hide, why prevent others from entering the market?” the PNP questioned.
The PNP outlined a series of measures they plan to implement should they come to power, aimed at addressing the issues caused by GUTA including: Create a regulatory authority to oversee and control the pricing of essential goods and services such as food, rent, fuel, healthcare, private education, and transportation to prevent price gouging; Reevaluate and amend the constitution to revise existing monopoly laws, promoting fair competition in the market; Enact the consumer protection law that the 8th parliament has failed to pass, ensuring robust protections for consumers; and set up and manage government retail outlets that offer essential goods at regulated prices.
President Nana Addo Dankwa Akufo-Addo has directed the Finance Ministry to disburse GHS1.5 billion to assist customers affected by the banking sector clean-up.
The announcement was made by Finance Minister Dr. Mohammed Amin Adam during a Town Hall meeting in the United Kingdom a week ago.
Dr. Amin Adam emphasized that the President’s directive requires the disbursement to be completed by October.
He highlighted the government’s commitment to the welfare of Ghanaians, noting that while individuals are generally responsible for their investment decisions, the government recognizes the hardships faced by those affected by the financial sector’s upheaval.
“Ideally, government should not be held responsible for the investment decisions of individuals, but this government is so caring,” Dr. Amin Adam stated.
“Mistakes were made, and people were not well-informed, and they didn’t know who to consult to be advised, but we also know that the people who are affected are suffering. We have heard that some people have died and others had to commit suicide,” the Finance minister said.
He continued that: “This government is so caring that in the first place, we granted some bailout to all the affected, and I want to tell you again that the President has directed that we do another bailout. So between now and October, we will release GHc1.5 billion to the affected people.”
In addition to the relief efforts, Dr. Amin Adam disclosed the successful conclusion of Ghana’s debt restructuring program with its official creditors.
The government has restructured its debt of US$5.1 billion with these creditors and has also completed the restructuring of US$13.1 billion with Eurobond holders.
The Bank of Ghana has addressed recent comments and discussions in the media concerning the role of FinTechs and Money Transfer Operators (MTOs) in providing inward remittance services in Ghana.
In a release, the Central Bank aims to inform and educate stakeholders and the public about the actual involvement of FinTechs and MTOs in these services, and to correct any inaccuracies that have been circulated.
The Bank has responded to specific allegations as follows:
Media Allegation (MA): The decline in Ghana’s inward remittances has been validated by the Bank of Ghana that the newly licensed MTOs and 11 Fintech Companies have withheld approximately GH¢18 billion (US$ 3 billion) in 2022 and GH¢57 billion (US$ 5 billion) in 2023 at the expense of the country’s foreign currency reserves. The country has lost approximately US$ 8 billion in the past two years, which could have been used to shore up the persistent depreciation of the local currency against the major trading currencies.
Bank Response (BR): Ghana has seen a consistent increase in remittance inflows year-on-year (Bank of Ghana and World Bank data). The Bank of Ghana does not license MTOs since such companies are based abroad. The Bank, however, conducts due diligence on MTOs who partner local banks and/or FinTechs to deliver remittances into Ghana as part of the authorisation process. Furthermore, all remittance inflows are credited to the nostro account of partner banks of Payment Service Providers (PSPs), as such, no PSP holds any forex inflows from inward remittances. The partner bank credits the local cedi accounts of PSPs for onward transfer to beneficiaries.
Based on the above, the assertion that the country has lost US$8 billion in the last two years (i.e, US$ 5 billion in 2022 and US$3 billion in 2023) based on FinTechs and MTOs withholding same at the expense of the country’s foreign currency reserves is misleading and not grounded on facts.
MA: Ghanaians want to know why the country operates two separate foreign exchange systems, where the 23 authorized dealer banks account for all foreign exchange received from inward remittances while the “newly licensed” MTOs and Fintech companies do not account for all foreign exchange receipts from inward remittances under the Foreign Exchange Act, 2006 (Act 723).
BR: Bank of Ghana does not and has not licensed any MTO. Additionally, Ghana does not operate two foreign exchange systems. Both banks and FinTechs who engage in inward remittance services do regularly submit prudential returns to the Bank of Ghana as part of their regulatory obligations. Banks and FinTechs have the responsibility of complying with the Foreign Exchange Act, 2006 (Act 723) and other legal and regulatory requirements.
MA: The non-compliance with the Foreign Exchange Act, 2006 (Act 723) by the Digital Technology Infrastructure companies, including the Fintech and Block Chain companies have hindered the regulation of some entities and by extension reporting of remittance data. Still, there is sometimes an overlap of responsibilities between government institutions with poor coordination, thus data reported are divergent, leaving the compiler and analyst confused. In addition, a clear assignment of responsibility is necessary to know which agency is to generate remittance statistics whether the Bank of Ghana, authorized dealer commercial banks or the Ghana Statistical Service.
BR: The Bank of Ghana has the mandate to regulate all payment systems and services in Ghana, including inward remittances. The Bank continues to evolve its regulatory framework to remain relevant and effective in the face of technological advancement. The Bank collects data on inward remittances from all licensed institutions and undertakes regular surveillance activities to identify any illegal operations in the remittance ecosystem.
MA: Mobile money and other digital channels that have been made available by PSPs are now providing extensive, affordable, convenient, and flexible alternative means for accessing remittances by beneficiaries, but foreign exchange components could not be traced and tracked to the local banks’ returns or the Bank of Ghana’s nostro balances with their correspondent banks.
BR: As indicated earlier, all foreign exchange inflows associated with remittance flows are accounted for through the submission of prudential returns by the banks to the Bank of Ghana.
MA After a careful review of the Bank of Ghana’s Guidelines for Inward Remittances for PSPs (2021), PSPs and MTOs were supposed to operate two accounts (a) remittance inflow settlement account and (b) local settlement account, without recourse to their Nostro accounts.
BR: The statement is grossly inaccurate. Section 7 (1)c of Bank of Ghana’s Updated Inward Remittance Guidelines for Payment Service Providers (2023) clearly mandates PSPs involved in inward remittance termination to ensure partner MTOs credit remittance proceeds to nostro account of the partner banks for onward credit to a cedi settlement account. It also stipulates that all funds terminated should be reconciled and matched within 72 hours. However, under the 2021 Guidelines mentioned above, whereas PSPs were allowed to maintain a remittance inflow settlement account and local settlement account, all inflows were routed through the nostro accounts of their partner banks.
MA: The current practice, as operated the Bank of Ghana, has not been beneficial to the country as the MT0s and Fintech companies are holding foreign currencies in their correspondent banking accounts. Also, after careful examination of the Bank of Ghana’s consolidated foreign receipts on the Balance of Payment data from 2019 to 2023, there had been no recording, tracking and tracing of the inward remittances in the Bank of Ghana’s consolidated foreign receipts.
BR: This is misleading and not based on facts. As explained earlier, remittance inflows are credited to partner banks’ nostro accounts. The Balance of Payments data published by the Bank of Ghana accounts for remittance inflows, including those facilitated by PSPs.
MA: The Foreign Exchange Act, 2006 (Act 723) prohibits outbound remittances from Ghana unless the transaction is made through a bank while the same Act 723 prohibits inbound international remittances not made through an authorized dealer bank. The deregulation of foreign remittances had impacted negatively on the stability of the local currency and accelerated the depreciation of the Cedi after the country was barred from the international capital market in 2022.
BR: The Guidelines for Inward Remittances for PSPs is consistent with the Foreign Exchange Act, 2006 (Act 723). All banks and PSPs are strictly supervised to ensure full compliance with the provisions of the Guidelines and Act 723.
MA: Methodological compilation and analysis issues have been complicated by the licensing of more Fintech companies by the Bank of Ghana in the international remittance space since the passage of the Payment Systems and Services Act 2019, (Act 987) without taking into cognizance the existing Foreign Exchange Act 2006, (Act 723) and might have contributed to major discrepancies between the World Bank data on international remittances and Bank of Ghana data for remittances.
BR: The authorization of FinTechs to engage in remittances has not in any way complicated data collection and analysis. The engagement of MTOs, either by a bank or a FinTech, requires authorization from the Bank of Ghana. Additionally, the Bank diligently monitors MTOs that partner Ghanaian banks and FinTechs.
Touching on FinTechs’ involvement in remittance services in Ghana, the BoG has provided further clarification. According to the BoG, under Section 4 (1) (e) of the Bank of Ghana Act 2002 (Act 612) as amended, Section 2 (3) of the Foreign Exchange Act 2006 (Act 723), and Section 101(2) (i) of the Payment Systems and Services Act 2019 (Act 987), the Bank issued Updated Inward Remittance Guidelines in November 2023. These guidelines establish a framework for Payment Service Providers (PSPs), also known as FinTechs, to partner with Money Transfer Operators (MTOs) and local banks for the termination of inward remittances. The BoG explained that these guidelines complement the role of banks in providing remittance services and offer alternative channels, such as mobile money wallets, for Ghanaians to receive inward remittances. Importantly, the authorizations for PSPs are limited to inward remittance services only, with no involvement in outbound remittance services. Additionally, the guidelines require FinTechs to collaborate with partner local banks. FinTechs are not authorized to hold remittance proceeds outside of the banking system.
The multi-billion dollar Petroleum Hub project to be sited in Nzema area in the Western region is faced with a stiff standoff by the host community.
The host community, through the Coalition of Concerned Nzema People, has raised neglect concerns and is thereby making major demands before allocating the lands needed for the project.
The coalition insists that their stance is not anti-development. They acknowledge the economic and social value of the land, which has historically provided substantial benefits through coconut plantations, cash crops, and other resources. The land also holds significant mineral deposits, including gold, clinker, and crude oil.
The statement signed by representatives of the Coalition last week, on Tuesday, June 25, 2024, indicated that they are determined to protect their land and ensure that any development project benefits their community equitably and sustainably. They argue that, the land and its owners often become an afterthought in large-scale development projects, emphasizing that the land should be the most critical and costly consideration. The coalition has therefore outlined specific conditions that must be met before any land is allocated for the Petroleum Hub or similar projects including: Generational Compensation; and the land will neither be sold nor compulsorily acquired by the government.
“It can only be leased with provisions for generational compensation”, the coalition insisted while listing other demands.
One relates to Equity Interest whereby the community demands at least 25% of the investment value as equity, ensuring that the landowners benefit directly from the project.
Another is Phased Land Acquisition: To prevent land grabs without actual development, the coalition proposes starting with just 5,000 acres in the first phase. Further land allocation would depend on the successful completion of this initial phase.
Yet another concerns amenities. Given the risks associated with such a large project, the coalition demands the provision of essential amenities, including roads, hospitals, and training facilities, to help the local population take advantage of the opportunities provided by the Hub.
The coalition also calls for a 30% job quota for the core affected communities to prevent local residents from being disadvantaged due to rising living costs associated with the project.
They also demand a quota in senior leadership positions to ensure continuous local representation in the decision-making processes.
Furthermore, highlighting the environmental beauty of the region, the coalition insists on concrete measures to protect rivers, streams, the sea, plantations, and forests from potential oil spills and other environmental hazards.
The coalition praised the efforts of their leaders but firmly stated that no land would be allocated for the Petroleum Hub until these demands are integrated into any agreements.
The first phase of the project being done under the auspices of the Petroleum Hub Development Corporation (PHDC), aims at creating numerous jobs and providing a significant boost to local employment and the national economy, is set to begin as soon as it secures US$12 billion in requisite funding.
The Corporation which is a private led initiative aims to increase Ghana’s Gross Domestic Product by 70 percent by 2036. This is expected to generate substantial tax revenue while supporting the country’s vision of self-sufficiency and industrialization.
PHDC officially signed a US$12 billion agreement with TCP-UIC Consortium last week. The Consortium comprises of Touchstone Capital Group Holdings Ltd., UIC Energy Ghana Ltd., China Wuhan Engineering Co. Ltd., and China Construction Third Engineering Bureau Co. Ltd.
“This project is a testament to our commitment to industrializing Ghana and creating sustainable jobs for our people”, the Minister of Energy Dr. Matthew Opoku Prempeh said during the signing ceremony.
The CEO of PHDC, Charles Owusu, expressed optimism about the collaboration with TCP-UIC Consortium, highlighting their expertise and crucial role in the project’s success.
The ‘Petroleum Hub’ covering over 20,000 acres of land in the Jomoro Municipal Area in the Western Region, is a US$60 billion investment in total and is aimed at revolutionizing Ghana’s energy sector and boosting its economy.
The key infrastructure includes three refineries, five petrochemical plants, 10 million cubic metre storage facilities, jetties and port infrastructure.
The first phase of the project, a cornerstone of Ghana’s industrialization strategy, will focus on establishing critical infrastructure, including the first refinery. With a capacity of 300,000 barrels per day (bpd), this refinery will significantly enhance Ghana’s ability to process crude oil domestically.
It will also include a petrochemical plant which will convert petroleum byproducts into valuable chemicals used in various industries, ranging from plastics to fertilizers.
Also there will be construction of storage tanks with a capacity of 3 million cubic meters to ensure a steady supply and efficient distribution of petroleum products.
There are also plans to develop an oil jetty and port infrastructure to facilitate seamless import and export activities.
Ancillary Infrastructure: Including pipelines, power plants, and a cutting-edge laboratory for product testing are also planned.
The hub’s strategic location is poised to make Ghana a pivotal player in the West African petroleum market. The hub will leverage Ghana’s stable political climate, strategic geographic position, and attractive investment incentives to draw further investments and foster economic growth.
The Petroleum Hub Project is to be developed in three phases over the next 12 years.
A petition to Parliament opposing a proposed Legislative Instrument (L.I.) aimed at regulating cement prices has been criticized by the Trade and Industry Minister.
Last week, the Chamber of Cement Manufacturers, Ghana (COCMAG) raised strong objections to a proposed Legislative Instrument (LI) intended to regulate cement prices submitted to Parliament by the Minister of Trade and Industry, K.T. Hammond.
The cement industry players are not happy with the minister over lack of consultation on the proposed Instrument. They believe the proposal does not address the primary issue driving cement price hikes: the rapid depreciation of the Ghanaian cedi against the US dollar.
“The unilateral attempt by the Minister to introduce this proposal to Parliament without engaging with us is not only unfair but also detrimental to the spirit of partnership and mutual respect that should guide our collective efforts to stabilize and grow the industry,” Dr. George Dawson-Ahmoah, CEO of COCMAG said whilst criticizing the move, highlighting its impact on fairness, transparency, and inclusive decision-making.
COCMAG’s petition to Parliament urges the rejection of the proposed LI and calls for the Minister of Trade and Industry to engage with the Chamber and other stakeholders to address the root causes of cement price escalation.
“In light of these concerns, we respectfully petition Parliament to decline the proposed Legislative Instrument and to direct the Minister of Trade and Industry to engage with the Chamber of Cement Manufacturers and other relevant stakeholders to discuss and address the underlying causes of the price escalation. Such a collaborative approach will enable us to develop effective and sustainable solutions that consider the interests of all parties involved,” the petition read.
Dr. Dawson-Ahmoah also reiterated the chamber’s commitment to collaborating with the government for a stable and prosperous cement industry in Ghana.
“We trust that you will consider our petition so as to ensure that the voices of the primary stakeholders in the cement industry are heard and respected,” he added.
Meanwhile, in his interaction with journalists, Hon Hammond affirmed the government’s commitment to ensuring fair pricing for Ghanaians.
“I think there’s something fundamentally wrong with the pricing of our cement in the country. It was about the same issue that we tackled when we were at the Ministry of Energy. I believe that there has to be some sanity in the system.”
Mr. Hammond revealed that he had received a copy of the petition from the Chamber of Cement Manufacturers, describing it as “pretty insulting.”
He expressed surprise at Dr. Dawson-Ahmoah’s stance, given their long-standing professional relationship.
“Dr. George Dawson-Ahmoah, he’s been a person I have known for many years when he was at GHACEM. We have been very good friends. He has been in consultation with us. He has been on board with respect to all that we have undertaken,” Mr. Hammond recounted.
He criticized Dr. Dawson-Ahmoah for suggesting that Parliament should direct him to retract the L.I. and consult with the Chamber.
“Now he arrives in Parliament and tells Parliament to order me to take back my documents and to consult with him because what I have done is not right or respectful.
“But he has a PhD, he’s a doctor, so reading and comprehension shouldn’t be a problem for him. He should go and read the constitution and he will see that by Article 11 thereof, Parliament doesn’t tell me to go and consult with him,” Mr. Hammond asserted.
Emphasizing the need for regulated cement prices, Hammond urged manufacturers to maintain fair pricing practices.
“I am going to encourage my colleagues to ensure that there is some sanity in the pricing of cement products in the country. It’s about time that somebody took a handle on the situation and got things in the right direction,” he added.
Ghana recorded US$4.6 billion in remittance receipts in 2023, a marginal decrease from the 2022 figure of US$4.7 billion.
Although, Ghana’s remittances receipts fell slightly last year, they were still the second highest in Africa, according to the World Bank’s 2024 Migration Development Report.
Having the largest population size on the continent, Nigeria recorded US$19.5 billion in remittance flows to top the list while Kenya ranked third with US$4.2 billion, Zimbabwe fourth with US$3.1 billion, and Senegal fifth with US$2.9 billion in remittance inflows. The World Bank in its report highlighted the increasing importance of remittances.
“Remittances have become the most important foreign exchange earner in several countries,” the World Bank stated emphasizing that, “in Kenya, remittances now exceed the country’s key exports, including tourism, tea, coffee, and horticulture.”
The Bretton Woods institution also noted that remittance flows to Sub-Saharan Africa were nearly 1.5 times the size of Foreign Direct Investment (FDI) inflows in 2023 and demonstrated greater stability.
FDI flows to the region reached US$38.6 billion in 2023 driven primarily by greenfield project announcements in Kenya and Nigeria according to a UNCTAD 2024 report.
Countries heavily dependent on remittance receipts as contributors to Gross Domestic Product (GDP) include the Gambia, Lesotho, Comoros, Liberia, and Cabo Verde, with remittances contributing more than a fifth of GDP in the first three countries.
The report further detailed regional growth in remittances for 2023, largely driven by strong increases in Uganda (up 15% to US$1.4 billion), Rwanda (up 9.3% to US$0.5 billion), Kenya (up 2.6% to US$4.2 billion), and Tanzania (up 4% to US$0.7 billion).
However, remittances to Nigeria, which account for approximately 35% of total remittance inflows to the region, decreased by 2.9% to US$19.5 billion.
Within the period under study, the peak and trough of personal remittances received in Ghana were reached in 2015 and 2010 with US$5.0 billion and US$140 million, respectively.
The Economic Times defines remittances as the transfer of funds between parties as a bill, an invoice, or even a gift. However, “remittance” refers more broadly to the funds migrants send to their relatives in their home country while working and living abroad. These are also referred to as worker or migrant transfers.
Remittance means “send back.” In terms of money, a remittance is the sending of money to a recipient who lives abroad. Most families living in slow-growing economies and developing nations rely heavily on these remittances as their main source of income.
Foreign workers who send a portion of their pay to their families back home frequently do this.
The conditional appraisal approval granted by the Ghana’s Petroleum Commission(PC) for Eni’s Aprokuma-1X expired yesterday, June 30 2024, the Public Interest Accountability Committee in its 2023 annual report has indicated.
This follows after the Commission revised the initial conditional appraisal approval and indicated to Eni that it has up to June 30, 2024, to complete the appraisal and make a determination whether to drill or drop the Aprokuma discovery.
The Aprokuma well, within the Cape Three Points Block 4 drilled in 2022, discovered hydrocarbon in the Albian and Cenomanian, and an appraisal programme was submitted to the Commission. The Aprokuma-1X appraisal programme was approved. However, after further subsurface studies conducted by Eni, it established new Geological and Geophysical challenges associated with the Aprokuma discovery. This made the Commission to revise its conditional approval.
“Eni now has up to 30th June 2024 to complete the appraisal and make a determination whether to drill or drop the Aprokuma discovery”, the PIAC had reported in its 2023 annual report.
Also, upon the successful drilling of the Akoma and Eban exploratory wells in 2019 and 2021 respectively, Eni submitted a joint appraisal programme for the Akoma and Eban discoveries which was approved by the PC in 2023. Eni requested an extension of the Eban-Akoma appraisal programme in order to complete works to support the use of a Jack-up Rig for the appraisal drilling. This request was duly granted.
Meanwhile, Offshore South-West Tano (OSWT) & East Keta Operating Company Ghana Limited (EK-OPCO) are preparing to drill its obligatory exploration well in the fourth quarter of this 2024. The Partnership is currently engaging Tullow for a possible rig share opportunity.
The partners carried out well planning and drilling related procurement of goods and services in 2021 towards its exploratory activity.
PIAC in its 2023 annual report indicated this while updating the public on the activities within the upstream petroleum sector. While exploration activities continued on most of the petroleum blocks in 2023, some blocks have witnessed no activity at all.
Meanwhile, GOIL Upstream and Planet One Oil and Gas Limited’s signed Farm-in Agreement and Joint Operating Agreement on the Deepwater Cape Three Points are currently waiting for the Minister of Energy and Ghana National Petroleum Corporation for approval and consent respectively.
This comes after GOIL Upstream signed these two agreements with Planet One in December last year. Following the exit of ExxonMobil from the Deepwater Cape Three Points Contract Area in May 2021, the Minister of Energy in May 2022 assigned the 80% participating interest formerly held by ExxonMobil and operatorship of the block to GOIL Upstream.
