News Guide Africa

Category: News

  • Fitch describes Ghanaian market as weak

    Adnan Adams Mohammed

     

    In the midst of growing uncertainty, Fitch Solutions has described investors’ sentiment towards the Ghanaian market as weak.

     

    The international rating agency noted that foreign Investors remain cautious about uncertainty around Ghana’s debt restructuring processes.

     

    In its latest assessment of Ghana dubbed “Bleak Investment Outlook Dims Ghana’s Short-Term Growth Prospects”, It alluded that the current unfavorable trend towards Ghana’s instrument to the rapid depreciation of the local currency (cedi) since last year, coupled with ongoing uncertainty around Ghana’s external debt restructuring process under the G20 Common Framework, will keep foreign investors cautious.

     

    “Indeed, yields on the country’s Eurobonds traded at an elevated 34.4% (as of July 6), indicating that sentiment towards the Ghanaian market remains weak”, according to the UK-based rating agency, Fitch Solutions.

     

    “Moreover, we project that growth in Ghana’s most salient source markets – including the EU, UK and US – will soften over 2023”, it explained.

     

    Fitch is not in tuned with Ghana’s restrictive monetary conditions, claiming that, such coupling with still-elevated inflation in the markets will dampen appetite for overseas expansions.

     

    These dynamics, it said, inform the view that Foreign Direct Investment inflows into Ghana will fail to return to pre-pandemic levels in 2023, further clouding the short-term outlook for fixed investment.

     

  • Gov’t confident to pass first IMF review; sure of securing the next US$600m

    Adnan Adams Mohammed

     

    The government will open its books in September for the International Monetary Fund (IMF) for its first review, after it successfully secured a US$3.0 billion Balance of Payment Support program for the next three years.

     

    The first review will be due in two months away which will secure Ghana another US$600 million (second tranche of support) when successful to secure a Staff-Level Agreement.

     

    The second tranche is based on some conditions that government must satisfy after an assessment by the Fund’s Visiting Staff. However, the finance minister is very optimistic of securing an agreement with the visiting staffs.

     

    “We had an IMF Staff visit about three weeks ago which went very well and we’re expecting that review in September [2023]”, the Minister of Finance, Ken Ofori Atta, speaking to Journalists at the Ghana Trade Fair Redevelopment Project Investor Conference in Accra, last week, said.

     

    Mr. Ofori-Atta hinted that the country is getting back some confidence in the economy after many efforts in meeting the IMF conditionalities.

     

    “Between cabinet and parliament, so far we’ve gone through the qualitative performance criteria. So we expect that the review will go well in September [2023] to get a Staff-Level Agreement. We’ll go to the Board in November [2023] and we’re sure we can get it”, he explained.

     

    He is optimistic that the country will recover swiftly, adding “God always put the country through and with the help of all, speaking the same language, managing our investors and bondholders well, we will get there”.

     

    Meanwhile, the Finance Minister has described as a difficult period, getting individual bondholders to suspend their intended picketing the Finance Ministry.

     

    He, therefore, called for some sacrifice from the private sector in such a period since the country is now getting out of its challenges.

     

    “I think the technical people are meeting and the Lord has been faithful so far. But I also think we as Ghanaians must appreciate that these are not normal times and with where we were last year and now, clearly, we should have some excitement for the future”.

     

  • Eni Ghana and partners receive Presidential Honor for COVID 19 support

    Eni Ghana and its OCTP partners, Vitol Upstream Ghana Ltd (Vitol) and Ghana National Petroleum Corporation (GNPC), have been recognized by the President of Ghana, His Excellency Nana Addo Dankwa Akufo-Addo for the support to the country during the COVID 19 pandemic.

     

    Accordingly, the President has conferred on the OCTP Partners, the Presidential Honor for distinguished service.

     

    During the outbreak of the COVID 19 pandemic, the OCTP Partners led by Eni Ghana donated medical equipment and devices including ventilators, medical tents, nose masks and other personal protective equipment, as well as laptops and TV screens, to the Korle Bu Teaching Hospital, the Ghana Health Service, St. Martins De Porres Hospital in Eikwe and the Ellembelle District Health Directorate.

     

    In addition, Eni Ghana and its OCTP partners, Vitol and GNPC, donated 2 double-cabin pickups vehicles, 4 Station Wagons and pick up vehicles to the Western Regional Health Directorate and the Ghana Health Service respectively.

     

    Eni has been present in Ghana since 2009 with its upstream activity and currently accounts in the country for an equity production of about 30,000 barrels of oil equivalent per day.

     

     

  • BoG reviews health of economy

    The seven member of the Monetary Policy Committee, (MPC), of Bank of Ghana and chaired by the governor, Dr Ernest Addison will this week begin its bimonthly meeting to review the health of the economy and also announce a new policy rate for the next couple months.

    The policy rate is the rate at which universal banks borrow from the central bank as their last resort and also serves as a benchmark in setting the Ghana Reference Rate.

    Although inflation has inched up marginally, some economists believe the policy rate could be maintained at 29.5 percent for the second consecutive time.

    The recent price developments indicate that the inflation surge in the economy, witnessed since December 2021, has peaked. The latest readings since the January indicated consistent drops in headline inflation from the peak of 54.1 percent in December 2022 to 53.6 percent in January 2023, 52.8 percent in February, 45 percent in March and 41.2 percent in April, 42.2 percent in May and 42.5 percent in June this year.

     

    The main drivers of this inflationary trend are food and non-food items, which account for 54.2% and 33.4% respectively.

    The MPC meets bi-monthly to assess economic conditions and risks to the inflation outlook, after which a policy decision is made on positioning the MPR. Each decision signals a monetary policy stance of tightening, easing or stay put.

     

    The policy decision is arrived at by consensus with each member stating reasons underlying a preferred MPR decision.

     

    The primary objective of the Bank of Ghana is to pursue sound monetary policies aimed at price stability and creating an enabling environment for sustainable economic growth.

    Price stability, in this context, is defined as a mediumterm inflation target of 8±2 percent. This implies that headline inflation should be aligned within the medium-term target band for the economy to grow at its full potential without excessive inflation pressures.

    Other tasks for the Bank of Ghana include promoting and maintaining a sound financial sector with efficient payment systems through effective regulation and supervision. This is important for intermediation since risks associated with financial markets are also considered in the monetary policy formulation process.

  • Gov’t confident to pass first IMF review; sure of securing the next US$600m

    Adnan Adams Mohammed

     

    The government will open its books in September for the International Monetary Fund (IMF) for its first review, after it successfully secured a US$3.0 billion Balance of Payment Support program for the next three years.

    ,

    The first review will be due in two months away which will secure Ghana another US$600 million (second tranche of support) when successful to secure a Staff-Level Agreement.

     

    The second tranche is based on some conditions that government must satisfy after an assessment by the Fund’s Visiting Staff. However, the finance minister is very optimistic of securing an agreement with the visiting staffs.

     

    “We had an IMF Staff visit about three weeks ago which went very well and we’re expecting that review in September [2023]”, the Minister of Finance, Ken Ofori Atta, speaking to Journalists at the Ghana Trade Fair Redevelopment Project Investor Conference in Accra, last week, said.

     

    Mr. Ofori-Atta hinted that the country is getting back some confidence in the economy after many efforts in meeting the IMF conditionalities.

     

    “Between cabinet and parliament, so far we’ve gone through the qualitative performance criteria. So we expect that the review will go well in September [2023] to get a Staff-Level Agreement. We’ll go to the Board in November [2023] and we’re sure we can get it”, he explained.

     

    He is optimistic that the country will recover swiftly, adding “God always put the country through and with the help of all, speaking the same language, managing our investors and bondholders well, we will get there”.

     

    Meanwhile, the Finance Minister has described as a difficult period, getting individual bondholders to suspend their intended picketing the Finance Ministry.

     

    He, therefore, called for some sacrifice from the private sector in such a period since the country is now getting out of its challenges.

     

    “I think the technical people are meeting and the Lord has been faithful so far. But I also think we as Ghanaians must appreciate that these are not normal times and with where we were last year and now, clearly, we should have some excitement for the future”.

     

  • AOW 2023 promises to chart Africa’s energy destiny

     

    Industry leaders from across the international oil-and-gas sector, government representatives, energy policymakers, financiers and dealmakers will converge in Cape Town in October, when Africa Oil Week (AOW) 2023 takes place, under the theme, “Maximising Africa’s Natural Resources in the Global Energy Transition”.

     

     

    AOW 2023, billed as “Africa’s Leading Upstream Event” comes at a pivotal moment, as the world navigates a complex energy transition towards Net Zero. The event brings together major global decisionmakers to help map a sustainable, realistic transition path that supports Africa’s energy needs, stimulates socio-economic growth, and ensures Africa retains control of its own natural resources.

     

    For more than a quarter of a century, AOW has been the premier global platform for sharing industry developments and stimulating transactions across the African oil-and-gas upstream, bringing together governments, national and international oil companies, independents, investors, the geological-and geophysical community and service providers.

     

    “We are proud to provide a platform to discuss how Africa can develop its oil and gas sector through strong, sustainable carbon-management strategies,” says Ore Onagbesan, Head of Energy for AOW. “We remain committed to this event – as we have been for the past 29 years – as an energy forum that makes a positive global impact, and which leaves a legacy of socioeconomic development across the African continent.”

     

    This year, more than 2000 industry leaders including African governments and the private sector will be attending the five-day event, which offers pioneering industry-leading insights, and unrivalled deal-making opportunities.

    AOW 2023 will feature prominent, highly influential speakers at the core of energy-sector development. This year’s speakers include Maggy Shino, Commissioner for Energy, Ministry of Mines and Energy; Phuthuma Nhleko, Chairman of Tullow; Paulino Fernando de Carvalho Jerónimo, CEO of ANPG; Luca Vignati, Head of Upstream at Eni; Dennis Zekveld, Country Chairman, Shell Namibia; and Nina Koch, Head of Africa, Equinor.

     

    A new platform at AOW 2023 is the Finance and M&A Forum, sponsored by Herbert Smith Freehills, which will look at innovative project-financing models emerging to meet evolving ESG requirements. The forum will see banks, traders, advisors, and operators sharing knowledge on debt and equity financing in oil and gas during the transition, with practical examples from successful partners operating in challenging jurisdictions.

    Another new feature is the Gas Forum, with Roger Brown, CEO of Seplat Energy; Unni Fjaer, Vice President and Country Manager for Tanzania, Equinor; and Duncan Wallace, Technical Director, Chariot.

    The full day programme focusses on the potential of gas as Africa’s transition fuel, beginning with “Monetising Africa’s Gas in the Next 7–10 years”.

     

    This year, Africa Oil Week again takes place alongside Green Energy Africa Summit 2023, billed as “the global platform for unlocking Africa’s sustainable energy potential”.

     

    Africa Oil Week 2023, Africa’s leading upstream event, runs from October 9–13 at the Cape Town International Conference Centre.

  • Minority wades into free SHS food suppliers nonpayment

    For Immediate Release

     

    11th July, 2023.

     

    fSHS – FOOD SUPPLIERS PICKETING, FUNDING AND MATTERS ARISING.

     

     

    On Friday, July 7th, 2023, the RT Hon. Speaker of Parliament directed that the Ministers of Education, Agriculture and Finance appear in Parliament. The purpose for the summons was for the aforementioned Ministers to brief the august House on matters which occasioned the picketing, including, sleeping at the premises of the National Food Buffer Stock Company (NAFCO), by members of the Ghana Association of Food Suppliers, a group of food supply contractors.

     

    The Speakers’ directive was after members of the responsible and empathetic NDC group in Parliament made compelling submissions to the Speaker to intervene in the matter. As we wait for the summoned Ministers to appear as directed on Wednesday July 12, 2023, it’s important to set the records straight; and to share a few issues with Ghanaians, whom we represent as Members of Parliament.

     

    To begin with, it was a needless drama which ensued from the intrusion by the Minister for Agriculture, Bryan Acheampong, when the leadership and members of the NDC group in Parliament visited the picketers to empathise with them and to obtain a first hand account of the vexatious reasons precipitating their action. The visit was to help the NDC side under the issues and to prepare adequately for the appearance of the summoned Ministers.

     

    The NDC members of Parliament deserve commendation for standing their grounds. They had every right to visit and interact with the picketers. It’s however worth adding, that the food suppliers who had been picketing amidst wailing, sleeping and cooking at the premises of the NAFCO for four days, on purpose to draw public attention to their plight and to put pressure on the NPP government to pay them some outstanding GHC270m, have suspended their action.

     

    According to the food suppliers, the decision to suspend their action is based on assurances given them by the Minister for Agriculture, under whom the NAFCO is housed. According to them, the Minister assured them that they [the food supply contractors] will be paid, starting from the 17th of July 2023. Notwithstanding the above, some interesting revelations have come to the public that would surely guide members of Parliament as we anxiously wait to welcome the summoned Ministers to Parliament on the matter of nonpayment of the food suppliers by government.

     

    According to the the food suppliers who picketted at the premises of NAFCO, they belong to a group called the Ghana Food Suppliers Association. They add, that their group has supplied food to Secondary Schools since the implementation of the fSHS policy in 2017. They indicate, that the trigger for the action they embarked upon, was because government has not paid them for the cost of supplying food to Secondary Schools for two years – 2021 and 2022. Cumulatively, they claim to be owed some Ghc270m by government.

     

    In their reasons for picketing, the group assert, that all efforts to get paid by the NAFCO, including petitions to the Presidency and meetings with the Minister for Education, yielded no fruit. The suppliers further claim, that the Minister for Education told them at a meeting, that his outfit had released 90% of the amount owed them to the NAFCO to pay them [food supply contractors]. Yet, the said releases never materialised in payments to the suppliers.

     

    This is what caused them to issue a public notice of the now suspended action. They informed the public that government’s indebtedness to them made it impossible to pay their creditors, who pestered them for monies owed. Consequently, under such circumstances, they no longer had the capacity to supply food to Secondary Schools. Despite prior served warnings to the powers-that-be, to the effect that they would take drastic action if government failed to pay them, nothing was done to address their issue.

     

    What seems to have greately irritated the members of the Food Suppliers Association, as they claim, is that, while they are owed for supplying food to Secondary Schools for two years, two new groups of food suppliers were formed, given contracts and paid. According to them, these new supplier groups – one formed by the Ministry of Education and the other by the FBSC – are paid timeously and even pre financed, in some cases, to supply food to schools. Why new groups were formed and are paid, while the group that refers to itself as orginal are owed, deserves further interrogation.

     

    As it stands, Parliamentary records reveal, that Parliament, since 2017, has always approved every amount the government of Ghana has requested to fund the fSHS policy, including the years for which the members of the Ghana Food Suppliers Association are owed. For example, fSHS was allocated GHC1.9b in 2021, GHC2.3b in 2022, and GHC3.0b in 2023. The records further confirm, that from 2017-2023, Parliament has approved a total sum of GHC11.9b to fund the fSHS programme.

     

    For the period 2017-2021, Parliament approved a total sum of GHC7.62b to fund the programme. According to the Minister for Finance, out of the GHC7.62b, only GHC5.3b was used. This means a surplus of GHC2.5b was unused for the allocated purposes. Interestingly, according to the Minister for Education, for the same five year period, from 2017-2021, only GHC5.1b out of the GHC7.62b was used. Consequently, GHC2.3b remained unused.

     

    Notwithstanding the obvious inconsistencies in the total amount invested from 2017-2021, it is further clear, that the total funding for the period was not used. And while we wait for actual figures on how much of the GHC2.3b allocated to fund the programme for 2022 and how much of the GHC3.0b allocated to fSHS for 2023 has been utilised so far, it is certain that inadequate funding cannot be the reason for government’s inability to meet it’s obligations to all suppliers of food to Secondary Schools.

     

    While at it, be informed that some suppliers of school uniforms and sports apparels have indicated privately, that government owes them too. Equally intriguing is, that since the implementation of the fSHS, some absorbed fees have never been released to schools, thereby creating some serious financial management constraints for Heads of Secondary Schools, in those respects. Particular mention must be made of fess in respect of maintenance, library, ICT and ID Cards.

     

    I’ve long called for an audit of the fSHS. I believe the issues enumerated justify the need for an audit. Ghanaians have the right to know why the fSHS faces so many implementation challenges despite the quantum of resources allocated to fund the programme year in and year out. What is clear is, that there are many issues associated with the implementation of the fSHS policy which need further illumination.

     

    I have no doubt that Members of Parliament will boldly demand answers from the summoned Ministers with regards to all matters associated with the implementation of the fSHS policy in the national interest. Wednesday July 12, 2023 promises to be memorable.

     

    Dr. Clement Abas Apaak

    M.P, Builsa South and Deputy Ranking Member On Education Committee of Parliament

  • BoG’s operational mechanism hailed

    Adnan Adams Mohammed

     

    Former Vice Chancellor of the University of Ghana has praised Bank of Ghana’s operational mechanism, stating that it surpasses most public institutions.

     

    Highlighting the significant improvement in the Bank’s research output for both academic and public policy purposes compared to the structural adjustment era of the 1980s, he said this has been attributed to the progress of the Bank’s investment in building a high-quality human capacity over the past three decades.

     

    “The Bank’s current leadership and what they are engaged in is very pleasing”, Professor Ernest Aryeetey, the Secretary General of the African Research Universities Alliance expressed his satisfaction at the launch of Ivor Agyeman-Duah’s comprehensive book on the Bank of Ghana, titled “Central Banking in Ghana and the Governors – Institutional Growth and Economic Development”.

     

    The book launch, organized in Accra over the weekend by the London School of Economics Alumni Association and attended by the Bank of Ghana’s leadership, marked a milestone in capturing the Bank’s history and contributions.

     

    The 553-page book, published by Hawkes Design and Publishing in the United Kingdom with a Ghana edition by Digibooks, has garnered praise for its extensive coverage and content.

     

    Professor Aryeetey, known for his extensive work on the Ghanaian economy, called for the Bank to leverage its operational independence to engage other stakeholders in addressing pertinent issues that remain unresolved.

     

    He specifically mentioned the imbalance of deposits and lending rates, which affect not only the manufacturing sector but also agriculture, small-scale businesses, and individuals, hindering desired growth.

     

    Mr. Kwame Pianim, another prominent Ghanaian economist, described the book as “felicitous and voluminous, holding attention and going beyond the ordinary.” He commended the author, Ivor Agyeman-Duah, for his eclectic and broad professional background, evident throughout the narrative.

     

    She emphasized the importance of Africa participating in global conversations with a unified voice, highlighting the need to shape the changing global financial architecture to benefit the continent.

     

    Dr. Maxwell Opoku-Afari, the First Deputy Governor of the Bank of Ghana, acknowledged the book as a reflection of the work of all the Bank’s Governors since its establishment.

     

    He acknowledged that interpretations may differ based on the reader’s economic philosophy or ideology.

     

    Dr. Opoku-Afari anticipated constructive public discourse on the book’s contents, serving as a valuable resource for central bankers, economists, academics, and students of economics.

     

    In concluding the launch, the author, Ivor Agyeman-Duah, emphasized that the book was independently written, acknowledging that not all interpretations may align with the Bank of Ghana’s views.

     

    He welcomed constructive critique and commentary from economists, academics, and other reviewers, aiming to stimulate intellectual discussions surrounding the book.

     

    The launch of “Central Banking in Ghana and the Governors” celebrated the Bank of Ghana’s 65-year history while providing insights into its accomplishments, challenges, and potential areas of improvement.

     

     

  • Full-scale audit into disposal of $110m power barge needed – Jomoro MP

     

    By Ibrahim Awall

     

    A Member of Parliament has expressed concern over the ‘unauthorized’ dismantling of the Osagyefo Power Barge by a private firm named Misak Limited.

     

    The power barge, with a capacity of 125 megawatts, was originally procured by the Jerry Rawlings government in 1999 from Italy at a cost of $110 million under an arrangement with Balkan Energy.

     

    In 2015, the Ministry of Energy directed the Ghana National Petroleum Corporation (GNPC) to take over ownership of the barge. However, due to a prolonged legal dispute, the GNPC was unable to carry out any maintenance activities on the barge, leading to its deterioration from excessive corrosion.

     

    “I asked a question to ascertain the status of the power barge and the Minister confirmed that a private company with the name Misak, without proper authorisation and due processes, has significantly dismantled the power barge and sold off the component”, MP for Jomoro, Dorcas Affo-Toffey, called for legal action to be taken against Misak Limited following an update provided by the Deputy Minister of Energy, William OwurakuAidoo, on the status of the barge.

     

    What surprises me the most is that there has not been any legal action taken against the company that did this illegal act but rather, the government is seeking to share the proceeds from the sale of the power barge with the company.”

     

    She also demanded for a full-scale audit into the disposal of the badge and transparency in the sale of the barge.

     

    “As the MP of the area, I am demanding that the right thing be done and the company must be brought to the law and also a full-scale forensic audit into the disposal of the badge be done and finally calling for a high level of transparency in the final sale of the badge.”