News Guide Africa

Category: News

  • Banks record GHC1.3b profit…for 1st two months of 2022

    Banks record GHC1.3b profit…for 1st two months of 2022

    By Elorm Desewu

    Banks’ profitability has improved slightly over the first two months of 2022, recording a profit before tax of GH¢1.3 billion, compared to GH¢1.1 billion during the same period last year.

    The growth in net interest income dropped marginally recording 10.3 percent to GH¢2.2 billion, compared to 10.9 percent a year ago. Net fees and commissions grew by 11.8 percent to GH¢486.8 million, lower than the growth of 13.7 percent registered during the same period last year.

    Other income of the banks stood at GH¢383.2 million, representing 95.5 percent growth, compared with a contraction of 16.5 percent in the same period last year. These developments resulted in a 16.9 percent growth in operating income to GH¢3.1 billion, compared with a growth of 8.7 percent in the corresponding year. However, operating expenses went up by 21.3 percent on account of higher administrative costs and emoluments, relative to a contraction of 0.3 percent in the same period last year.

    Developments in the banking sector over the first two months of 2022 show continued strong asset growth. Total assets stood at GH¢187.8 billion in February 2022, representing 23.5 percent annual growth, compared with 18.5 percent growth in the previous year.

    The growth in assets was on the back of increased deposits and borrowing. Total deposits recorded a year-on-year growth of 18.2 percent to GH¢123.0 billion. Borrowing increased significantly by 78.8 percent to GH¢25.5 billion, relative to the contraction of 23.4 percent in the previous year.

    The rebound in credit growth continued in the first two months of 2022, with a 70.7 percent increase in New Advances to GH¢8.0 billion, compared with 24.6 percent growth in the same period last year. 15. Trends in the financial soundness indicators remained positive, underpinned by strong solvency, liquidity, and profitability.

    The Capital Adequacy Ratio of the Industry was 19.6 percent at end-February 2022, well above the current 11.5 percent regulatory minimum threshold. Core liquid assets to short-term liabilities was 24.2 percent in February 2022, compared with 26.5 percent in the previous year.

    Improvements in asset quality continued into 2022, with the Non-Performing Loans (NPL) ratio declining to 14.4 percent on average, at end-February 2022, compared with the NPL ratio of 15.3 percent in February 2021.

    Credit to the private sector continued to recover, consistent with the rebound in economic activities. In nominal terms, annual growth in private sector credit increased significantly to 17.1 percent in February 2022 compared with 7.4 percent in the same period of 2021.

    In real terms, private sector credit grew by 1.2 percent relative to a contraction of 2.7 percent, over the same comparative period. The latest credit conditions survey revealed tightened credit stance on loans to enterprises. However, demand for credit by households and small and medium sized enterprises are projected to increase in the near to medium-term.

  • Economists, MoMo vendors and users respond negatively to E-Levy passage

    Economists, MoMo vendors and users respond negatively to E-Levy passage

    Adnan Adams Mohammed

    Senior economists including a former finance minister, Mobile Money vendors and users have reacted negatively to the passage of the Electronic Transactions Levy bill into law by the current government.

    The bill was passed into law last week by one-sided parliament due to a walkout staged by minority NDC members of parliament and subsequently filing court action at the Supreme Court for stay of execution to challenge the ‘lack of quorum’ in the House at the time of passage of the bill into law.

    Mobile Money (MoMo) vendors across the country complained that, there were madrush withdrawals at their various mobile money vending outlets causing them to run out of cash which has tendency to collapse their petty business in the circumstances of the current economic hardship. However, it took the president, Nana Akufo Addo two working days to assent to the E-Levy law despite majority of Ghanaians haven openly kicked against the levy, especially taxing MoMo. An economics professor at the University of Ghana Business School shared his disappointment at the government for ignoring a better and progressive tax alternatives to push through the regressive E-Levy.

    “There are more efficient, progressive, fairer and equitable means of generating more tax revenue by improving efficiency along with existing tax handles. How much this e-levy can raise is far lower than what we could have gained if we had passed the exemption bill in 2019”, Prof. Godfred Bokpin intuited. “During the 2019 SONA, the President told us that the biggest threat to Ghana’s revenue base is an exemption and told us that in 2018 alone, Ghana lost GHS4.66 billion and assured us that the new bill is being sent to Parliament. After all these years, nothing has been done. But look at the urgency with which we want to pass the e-levy. When you do that, you’re creating some sort of imbalance that says that the economy is set up to favour foreign capital against domestic capital formation and that is unfortunate.”

    Also, Dr. Kwabena Duffuor, a former Finance Minister, reacted sadly to the news of the passage. He described the President Nana Akufo-Addo’s administration and the NPP MPs as not a ‘listening government’.

    Lamenting on his Facebook wall the morning after the e-levy was passed, Dr. Duffuor said, “The NPP has progressed in their passage of the unpopular e-levy bill. May it be on record that despite the hardship of the Ghanaian people and disaffection for the e-levy, the NPP ignored these concerns and added to our tax burden.”

    Just like many well-meaning and experienced economic specialists, Dr. Kwabena Duffuor has, in the past, offered several suggestions on alternatives to the E-levy.

    Dr. Duffuor, in an interview he granted on Starr FM in February this year, had said; “Currently in Ghana, foreign interests are largely the main beneficiaries of our extractive sector at the expense of Ghanaians who benefit from very little revenue from our natural resources”.

    “We must start looking at the sector we have ignored over the years – the extractive sector. A well-managed natural resources centre has emerged as the safest route to prosperity in many developed countries such as the USA, UK, and Germany. We must go back and renegotiate our mining agreements for higher revenues rather than stick to colonial agreements to the detriment of our people”.

    The levy rate was amended from 1.75 percent to 1.5 percent and will apply to electronic transactions that are more than GH¢100 daily.

    Critics of the proposal have warned that this new levy will negatively impact the Fintech space, as well as hurt low-income people and those outside the formal banking sector.

    The levy has been the source of tension in Parliament since it was introduced in the 2022 budget. The tensions culminated in a scuffle between lawmakers in Parliament in December 2021.

    The government has, however, argued the levy would widen the tax net and that could raise an extra GH¢6.9 billion in 2022.

    There are also concerns that the government may securitize proceeds from the e-levy to raise extra revenue.

  • Natural Gas could position Ghana as a powerful country – Energy Communicator

    Fiifi Abdul Malik

    Energy sector communicator has reiterated the call on government to take a critical look at Ghana’s gas industry, saying the country needs to “plan properly” to attract more investors for it.

    The energy communication expert believes the country will be better-off if it should develop a proper system to manage it’s gas sector.

    Speaking at national dialogue organized by the Natural Resource Governance Institute (NRGI) and the Africa Centre for Energy Policy (ACEP) on Ghana’s gas, the communication expert called on stakeholders to keep brainstorming in support of government to manage the sector. Themed “National Dialogue on the future of Ghana’s Gas Sector”,  the dialogue held in Accra brought some energy expect and industry players to  brainstorm on ways to develop the country’s “transition fuel”.

    “We are talking about a cleaner fossil fuel here, cleaner than oil and people call it the transitional fuel,” Chief Executive Officer of Ghana Upstream Petroleum Chamber, David Ampofo, has said. “Look at how it is used in geopolitics, it is a big thing. There are issues of Europe trying to wean itself from Russian natural gas, that should tell you something.

    “It provides power and allows you to industrialise that is the way you develop. So natural gas is critical,  the crude is important.”

    Mr Ampofo admitted that programs like that will be helpful to government in it’s policy direction for the industry

    “It is good to share opinion, take a view of what is to come,” he said.

    “Natural gas is becoming increasingly important to us. I am glad we are talking about natural gas now, giving that there is energy transition underway.

    “These things are things that we need to take a view on, plan properly, have good policy, attract investors and work together for the benefit of the country.”

    A pool of experts from both the Natural Resource Governance Institute (NRGI) and the Africa Centre for Energy Policy (ACEP) spoke at the program on Tuesday.

    This dialogue sought to discuss critical issues related to the gas sector and explore the current and future investments in the sector to ensure adequate and sustainable supply of domestic gas within the context of the energy transition and Ghana’s net-zero ambitions.

  • Flashback: When Black Stars’ bus was burnt in Lagos after 1973 Nigeria game

    The euphoria at the Moshood Abiola Sports Stadium in Abuja was marred by a surge of agitated football fans on Tuesday, March 28.

    Prior to that, Thomas Partey’s 10th-minute screamer sent the pockets of Ghanaian fans at the stadium into a frenzy.

    Back home in Ghana, it was an earthquake of jubilation as cars honked on major streets awaiting the 90 minutes plus the referee’s added time.

    Nigeria’s equalizer 12 minutes later was not enough to snatch the World Cup ticket in the face of a goalless draw in Kumasi last week.

    This result did not go down well with the mammoth crowd of Nigerians massed up in the stands who felt disappointed by the end of the 90 minutes.

    Hundreds of them in the 60,000 capacity stadium broke the barricades and headed towards the tunnel to launch an attack.

    Ghanaian players and supporters had to be quickly taken out of the stadium to avoid further attacks.

    But the vandalism continued. Amid tear gas, the angry fans thrashed the place and threw objects down the tunnel at their team.

    It later emerged that an official of CAF had died. It was not clear if it was due to the situation in the stadium.

    BBC journalist, Osasu Obayiuwana, reported that the deceased was Dr Joseph Kabungo from Zambia.

    “He was on duty as Doping officer. He collapsed suddenly and died. Cause of death not confirmed yet. His family, the Zambia FA and the government of Zambia have been duly informed,” he posted hours after the chaos.

    Considering the volatile nature of the situation, Black Stars players and the management team were flown back into Ghana and were settled in by 3 am on Wednesday.

    But this was not the first time such an ordeal has been recorded in Nigeria involving Ghana’s senior national team.

    Previous fracas back in 1973 led to the burning of the team’s bus after the Black Stars beat the Nigerians 3-1 to crash the latter’s hopes of qualification.

    The match, involving the two West African rivals, ahead of the FIFA World Cup in West Germany the next year saw an abrupt end.

    Though the Black Stars’ hopes of playing in the Mundial the next year would be truncated, the violence on that day in Lagos would be a prequel to Tuesday’s disaster.

    Here is how the Daily Graphic reported what happened on that Monday, February 12, 1973.

    Pandemonium broke out at the Lagos stadium on Saturday soon after the Black Stars had scored their third and winning goal in their World Cup elimination match against Nigeria.

    Stones and bottles were thrown onto the pitch in protest as the Black Stars jubilated.

    But the jubilation could not be sustained when the spectators surged onto the field.

    At this point, the Lagos State Military Governor, Col. Mobolaji Johnson, personally led a team of armed personnel to protect the Stars.

    The troops escorted the Stars off the pitch.

    A rough deal was, therefore, unleashed on the Ghanaian supporters who accompanied the team to Nigeria.

    It was during this onslaught that the supporters’ bus was set on fire.

    The fire-wrecked van was still smouldering yesterday morning. The Nigerian troops had to use tear gas to disperse the angry crowd.

    According to a BBC news bulletin, the game was abandoned soon after the Ghanaians had scored the winning goal.

    Nigeria took the lead in the 15th minute through wizard dribbler Yakubu Mambo but Ghana replied three minutes later when Kwasi Owusu scored from a penalty kick.

    This was after a Nigerian defender under pressure handled the ball in the box.

    In the 40th minute, Nigeria earned a free-kick just outside the penalty box.

    Confusion arose in the Ghana penalty box after the kick gas been taken, and Yakubu Mambo exploited the situation to put Nigeria back in the lead.

    Half time score stood at 2-1.

    Ghana redoubled her efforts on resumption.

    Centre forward Kwasi Owusu who hit his former goal-grabbing form, made several breakthroughs but the Nigerian goalkeeper made significant saves.

    In the 55th minute, left-winger Malik Jabir, who played a real captain’s game sent an intelligent pass to Kwasi Owusu to score the equalizer for Ghana.

    Nigeria, after the equalizer, quickly changed their pattern of play, but the Stars found an antidote to their style and forced them to play a defensive game.

    It, therefore, came as no surprise, when Kwasi Owusu scored the match winner in the 82nd minute in a goalmouth scramble.

    The Ghana line-up was Lante France, Enoch Asumadu, Ayi Acquah, Tetteh Gorleku, Dan Oppong, Sam Amarteifio, John Taylor/ Peter Lamptey, Eric Amankwa, Kwasi Owusu, Isaac Eshun, Malik Jabir( capt).

    The Black Stars returned home last night.

    Source: myjoyonline 

  • Akufo-Addo lauds Black Stars for WC qualify

    President Akufo-Addo has lauded the Black Stars over their win in the second leg of the World Cup Qualifier against the Super Eagles of Nigeria.

    The President’s comment comes after the Black Stars won by the away rule even as they drew 1-1 against Nigeria.

    Taking to Twitter, he congratulated the team for their “dogged display in Abuja.” He stated that the team has made the nation proud with this victory.

    “Warm congratulations to the Senior National Football Team, the Black Stars… for qualifying for the 2022 World Cup in Qatar. I am very proud of the team’s exploits. They have made the entire nation proud,” he tweeted.

    Thomas Partey opened the scoring in the 10th minute of the game after sending in a thunderous strike from outside the penalty box to give Ghana the lead, but William Troost-Ekong equalised for the home side.

    Despite several attempts from Nigeria in the second half, there was no goal to separate the two sides as Ghana secured qualification on the away goal rule.

    With this win, Ghana returns to the ‘Mondial’ to be played between November and December, this year, after missing out on the last edition in Russia in 2018.

  • E-Levy Walkout: Minority Smartness Pushed Majority To Make Unconstitutional Approval

    The ‘supposed’ passage of the controversial Electronic Transfer Levy (E-Levy) by a one-sided Majority side was an illegality, per the rules on voting in Parliament, the Minority has pointed out.

    In the hung Parliament of 137 MPs apiece for the Majority New Patriotic Party (NPP) side and the Minority National Democratic Congress (NDC) side a required quorum for the vote would have been 138 MPs, the Minority has explained.

    A quorum is the minimum number of MPs that must be available in parliament for a vote to legally carry and in the hung Parliament it is at least 138 MPs.

    However, the NPP Majority was critically bereft of one MP, Sarah Adwoa Sarfo of Dome-Kwabenya, who continued with her crippling hiatus from Parliament.

    And so, even with the independent MP for Fomena, Andrew Amoako Asiamah, voting along with the Majority, the NPP could not marshal the needed 138 MPs to form a quorum. However, the Majority side went ahead with the vote anyway.

    The tactic that the crippled NPP Majority side was looking to put into effect to pass the thievish e-levy was quite a convoluted one that started from the Supreme Court where the Akufo-Addo government had secured an injunction against the NDC’s MP for Assin North, Hon. Gyekye Quayson.

    It would be recalled that the Supreme Court had in its umpteenth controversial ruling that only favored the NPP Government of Akufo-Addo, upheld a controversial injunction against Hon. Quayson by a Cape Coast High Court which ruled that je had no right to present himself as MP because he had run for elections while bearing dual citizenship.

    Because of the injunction, Hon. Quayson would have been acting illegally if he had entered Parliament to vote on the e-levy.

    The NPP Majority’s hope was that in the NDC Minority’s passionate opposition to the e-levy and the controversial nature of the injunction against him, they would have allowed Hon. Gyekye Quayson to join them in Parliament to vote against the thievish levy.

    If the Minority had done that, the Majority would have then run to the Supreme Court which is super friendly to the NPP Government and filed a case of contempt against Hon. Gyekye Quayson and gotten his vote nullified by the court.

    This would have then meant that in the e-levy vote, 136 Majority MPs together with Fomena’s independent MP, voted in favor of the levy while 136 of the 137 votes cast by the Minority MPs was legal.

    By this technicality, the e-levy would have been duly passed.

    However, the Minority MPs were smarter – led by Minority Leader, Haruna Iddrissu, they boycotted the vote leaving only 136 Majority MPs and the independent candidate to vote.

    This meant that, the at least 138 MPs that they need to form a quorum to vote was not available.

    Even so, they massively voted for the thievish levy which gives government the right to enter into people’s mobile wallets and bank accounts to deduct money immediately they transfer money.

    But then, the constitutional implication is that the supposed passage of the e-levy was by a Parliament that could not form the quorum of at least 138 MPs as required by article 104(1) of the 1992 constitution.

    The Minority MPs decision to walk out of Parliament during the vote therefore was a masterstroke that made it impossible to form a quorum. And so, after the supposed passage of the e-levy Bill into law, the Minority has been indicating intent to challenge it in court.

    Already, Minority Leader, Haruna Iddrisu, has called the supposed passage a charade.

    “The Majority of less than 137 conducting businesses only proceeded on illegal and unconstitutional business. Parliament did not have the numbers to take any decision that should be binding Parliament and Ghanaians,” the Minority Leader said.

    Hon. Idrissu, together with two of his lieutenants – North Tongu MP, Samuel Okudzeto Ablakwa and BAWKU Central MP, Mahama Ayariga, have filed for a stay of execution at the Supreme Court to prevent President Akufo-Addo from assenting the law.

  • Okudzeto secures internship for evacuated Ukrainian medical students

    Okudzeto secures internship for evacuated Ukrainian medical students

    Adnan Adams Mohammed

    The Hon Member of Parliament for North Tongu in the Volta region, Samuel O. Ablakwa has secured internship package for Ghanaian students who were in school in Ukraine and evacuated due to the crisis.

    The students who numbers over 500 have been at home since they were evacuated. This has pushed the MP to arrange for the internship package at Battor Catholic Hospital for 20 medical students.

    The hospital, which is in his constituency, have agreed to accommodate and feed the trainees who have to apply direct to the medical superintendent of the facility.

    “Glad this win-win initiative would offer our celebrated hospital additional hands to improve health delivery in my constituency, and also help in the interim to provide practical skills for our compatriots who have been through hell and are now considering their future options”, The ranking member on Foreign Affairs Committee in Parliament and former Deputy Education minister noted in a circular. “Would be great to see other health facilities replicate this North Tongu/Battor Catholic Hospital initiative.”

    Below is his full statement:

    I am elated to announce that I have successfully negotiated for paid internship opportunities for 20 medical student evacuees from Ukraine at the reputable Battor Catholic Hospital in my beloved constituency.

    The package also includes support in securing accommodation and feeding.

    All interested Ukrainian medical students who escaped the ongoing war must apply directly to the Medical Superintendent of the Battor Catholic Hospital from today. The hospital will strictly vet and screen all suitable applicants without any interference.

    Glad this win-win initiative would offer our celebrated hospital additional hands to improve health delivery in my constituency, and also help in the interim to provide practical skills for our compatriots who have been through hell and are now considering their future options. Would be great to see other health facilities replicate this North Tongu/Battor Catholic Hospital initiative.

    #NorthTonguRising

  • Zongo Dev’t Fund commissions school, sanitation projects in the Ashanti Region

    The Zongo Development Fund (ZoDF) has commissioned several school and  sanitation projects in Zongo communities in the Northern and Ashanti Region.

    The projects, which are part of the over 30 projects completed in the region and more than 200 nationwide by the Fund, include six-unit classroom blocks and 10-seater public toilet facilities.

    The beneficiary communities and institutions include Ghana Muslim Mission Basic School, Juaso Zongo; Sakafiya Islamic SHS, Asawase; Nasru Deen Islamic SHS, Asawase; Markaz Hassan Shuaib School, Bosore Zongo, Nuriyya Islamic Basic School, Ntonso Zongo all six-unit classroom blocks.

    Others are Wadie Adumakase Zongo and Bodwesango Zongo, both toilet facilities.

    Other completed projects in the Ashanti Region to be outdoored later include community sports and recreational centres (astro turfs) at Tafo Zongo, Bantama Zongo and Agogo Zongo, and six-unit classroom blocks at Bouhou Zongo, Barekese Zongo, Pakyi No.1 Zongo, Asokore Zongo, Seniagya Zongo, Ataakurom and Effiduase Zongo, and toilet facilities at Brofoyeduru Zongo and Nkawie Zongo.

    Similar commissioning had taken place in the Greater Accra, Central, Western, Western North, Volta, Oti, Northern,  Savannah and Bono regions.

    The Chief Executive Officer of ZoDF, Obrempong Dr Arafat Sulemana Abdulai, handed over the keys to the facilities to the various Municipal and District Chief Executives, heads of educational institutions and Zongo Chiefs .

    In his remarks to the beneficiary communities,  Obrempong Dr Arafat  indicated that ZoDF was created by the New Patriotic Party (NPP) government under the leadership of President Nana Addo Dankwa Akufo-Addo to improve the socio-economic conditions in Zongo communities.

    Therefore, he said, the provision of school infrastructure and furniture was to give a facelift to educational infrastructure in Zongo communities.

    That, Obrempong Dr Arafat said, was to promote effective teaching and learning in the schools.

    “The aim is to produce more doctors, nurses engineers, lawyers, journalists and leaders, including Vice Presidents and Presidents in Zongos”, he said

    Obrempong Dr Arafat said the toilet facilities were to discourage open defecation and improve the sanitation situation in Zongos.

    Obrempong Dr Arafat affirmed the commitment of the Fund to executing more developmental projects in Zongo communities across the country.

    He, therefore, urged the people to support government”s efforts at raising revenue, including the electronic transaction levy (E-levy).

    Obrempong Dr Arafat urged the beneficiary communities to maintain the facilities well for the benefit of current and future generations.

    He said the Fund was poised to improving the management of its facilities to raise more revenue to put up more projects in Zongos.

    Receiving the keys to the projects, the MCEs, educational heads and Zongo chiefs lauded the ZoDF for executing the projects in their respective areas.

    They said the classroom blocks would ease congestion in schools, while the phenomenon of open defecation would be prevened.

    In his remarks, the Asante Akim South Municipal Chief Executive, Mr Alexander Frimpong, thanked God for blessing President Nana Addo Dankwa Akufo-Addo and Vice President Dr Mahamudu Bawumia with wisdom to establish ZoDF to execute developmental projects in Zongos.

    On his part, the Headmaster of Sakafia Islamic SHS, Mr Mohammed Shahid, said the six-unit classroom block had come at a time when the school was in dire need of classrooms.

    A Galadima at Wadie Adumakase Zongo, Chief Bilal Ishak Gozey, said the 10-seater toilet facility was the first government project to be executed in the Zongo community.

  • ‘These boys can do it’ – Mould asserted

    ‘These boys can do it’ – Mould asserted

    Mr Alex Mould, a football enthusiast has given his verdict of the Black Star team that played Nigeria in the World Cup qualifiers game last Friday which ended in all zeros draw.

    He believes the current youngsters are good to be maintained for the national team.

    Below is his comment:

    Old hands are overated. They will come and bring in Senior v Junior unless they will accept to be on the bench till 70th minute etc as they can not play 90 minutes up and down defending.  

    Muntari can not play instead of Kudus ; I guess maybe as a sub to Kudus if he has a bad game or injured or tired ;

    Jordan actually did well bar his disappointing corners and free kicks which need improvement; but he is the designated free kick and corner taker; I am sure we have a better alternative.

    He comes with experience but he is not a goal poacher and that’s the problem – we believe that’s his Key P performance I indicators.

    Otto Addo, his coaches and  technical team know better after this match

    It was a good selection , good Organisation, very compact, and the strategy worked.

    Nigeria is also a well coached team. They have bigger boys than we do and their defence is well organized

    Our defence was excellent with Djiku and Amartey (whobis in his best form) andvtge full backs doing their part. We need to identify their weak spots.

    My only observation is we play too central – we don’t use the flanks as much – more of our play origination should be from the flanks.

    I would like to see the two wingers teaming off more with Kudus.

    Maybe that’s where Muntari can come in if Kudus has a bad day or gets tired.

    Kyere is an excellent planter and I think he wil start as he gives us more defence, which will be needed in Abuja, and creativity.

    To ensure fair based on expectations we came out better than the Nigerians who I am sure thought they could win – and the almost did bar for Wllicotts antics.

    Abuja will be another game with a different strategy, I am sure. But this team is not a 6-0 team.

    It’s a compact team that will rely on team work to achieve the results.

    What I don’t know is their character –  I don’t know how good they are if they get unsettled by a goal agains them – Nigeria, the same!!

    Let’s leave the Coach and the boys to it.

    They want this win more than any of us I am sure – going to the WC comes once in a life time – maybe 2x.

    So let’s sit back and enjoy the BS that we have Ent seen play sooo good since about 2014.

    My two cents

  • Gofer Delegators Or Economic Managers – Dr Monfant quizzes

    Gofer Delegators Or Economic Managers – Dr Monfant quizzes

    Adnan Adams Mohammed

    Dr Jerry Monfant, an economist has described the current managers of Ghana’s economy as absolutely clueless about establishing good economic models to forestall the looming economic dangers.

    The international economist has noted that, research indicates that Ghana is not amongst well prepared Central Banks to take the hit on inflation as compared to Nigeria.

    He expatiated that, Ghana joined 13 worse economic performing countries in the World in November, 2021 and as well ranks fourth with a distressed Sovereign US$ Debt behind Argentina, Venezuela, and Lebanon. Also, Ghana ranks third as a worse performing emerging markets hard currency Sovereign Bonds.

    “Meanwhile the government of Ghana is absolutely clueless about establishing good economic models to forestall the looming economic dangers”, Dr Monfant shared his worry about the the Ghanaian economy in his recent post circulated on social media.

    Below is the full statement:

    From Dr . Monfant’s Desk

    Gofer Delegators Or Economic Managers?

    United States inflation is up at 7% as at 13th January, 2022. As part of the prudent measures to subdue the inflation, the US government has asked for more oil reserves to be released and has equally implore on China, Japan and South Korea to follow same in order to suppress the global inflation.

    Poland recorded 7.8 percent inflation during the same period. The busting measures taken by the Polish government includes cutting the VAT on petrol and diesel to 8 percent, and VAT on food, gas and fertiliser to 0 %. Both US and the Polish government are expected to raise interest rate to prevent excess financial transmission in their economies as a means of containing the global rising inflation.

    Our research indicates that Ghana is not amongst well prepared Central Banks to take the hit on inflation as compared to Nigeria.

    Of course, Ghana’s economic profile for the last three months leaves more to  be desired.

    Ghana joined 13 worse economic performing countries in the World in November, 2021.

    Ghana ranks fourth with a distressed Sovereign US$ Debt behind Argentina, Venezuela, and Lebanon.

    Ghana ranks third as a worse performing emerging markets hard currency Sovereign Bonds.

    Ghana is the 5th worse performing emerging economy in the World.

    Meanwhile the government of Ghana is absolutely clueless about establishing good economic models to forestall the looming economic dangers.

    41 percent of average Ghanaian household income is used for food consumption alone. In 2019, Ghana imported US $2bn of agricultural and related products across the World, while the citizens were made to believe that the government policy of “planting for food and jobs” was making headway.

    With the current Global stance, we anticipate 50 percent of an average household income to be used on food consumption alone, as the economy would be importing external inflation into the country through its agricultural import.

     E- levy, which is also billed to cut household incomes to a proportion are all part of the bizarre economic narrative which does not make sense to an economists. It’s clear living conditions could get even more worse, as the country might likely embrace debt default according to our scorecard scenario. This has a potential of raising social tensions.

    The productivity of the citizens are expected to decline by 0.017 percent and  we project this percentage to increase as the months roll-on.

    It’s clear the government of Ghana is no longer in charge of the management of the economy.  The questions economic pundits ask, is whether the Country has Gofer Delegators or a real economic management team? Call me if you find an answer.