The Ghana Association of Forex Bureaux has claimed that the Ghana Cedi can only gain stability through miracle, if things remain as it is.
This assertion is stemmed from the current downward trajectory of the Ghana cedi and the cyclical election-year trends, where governments loose control of the economy.
The cedi has so far lost 12 percent of its value to the US dollar in the first four months of this year. It is currently one of the worst-performing currencies in the world.
“We are not doing things right, which is affecting the cedi”, Vice President for the Association, Dr. Alex Akpabli explained that while the tottering economy will not help matters, election-year spending would even make the case worse.
“Looking at the trends, and this year also being an election year, the government would have to spend a lot to be retained. I am not politicising, but that is the case.”
“From my experiences over the years, I don’t see any appreciation going forward unless something dramatically or miraculously happens,” he said.
For Fitch’s projection that the cedi will gain about 1.0% against the US dollar in 2024, Dr.Akpabli told Joy News: “We are not doing things that will bring foreign currencies into the country. We need to be innovative. otherwise, we will always see ourselves in a vicious cycle”.
KIC and Mastercard Foundation have organised a First Pitch for the 2023 cohort of the Agritech Challenge Pro ahead of the Final Pitch event to take place this month.
The First Pitch took place at Kosmos Innovation Center in Accra, where the AgriTech Challenge Pro participants received feedback from Ideation Team members, a team of business experts across the agribusiness and agri-MSMEs sectors.
AgriTech Challenge Pro was introduced by KIC to provide young people with entrepreneurial skills within the agricultural sector. Through the 5-month program, young people are trained to grow their businesses, develop skills and capacity to scale up and become investor ready. The teams receive capacity building and training on business development, business diagnostics, design thinking, marketing, legal documentation, business team formation, among others.
Through KIC’s partnership with the Mastercard Foundation, the AgriTech Challenge Pro expects to train young people across the partner universities in the next two years, collaborating with regional academic partners such as universities and technical schools. The participating universities for this year’s Challenge include University of Ghana (UG), Kwame Nkrumah University of Science and Technology (KNUST), University of Cape Coast (UCC), Bolgatanga Technical University (BTU), Takoradi Technical University (TTU), Ho Technical University (HTU), Koforidua Technical University (KTU), University of Development Studies (UDS), SD Dombo University of Business & Integrated Development Studies (UBIDS), and University of Energy and Natural Resource (UENR).
Since 2022, the participants to the KIC AgriTech Challenge Pro join from the KIC AgriTech Challenge Classic, where KIC supports young people with a business idea, to develop these into agri-startups . At the Pro stage of the competition , these businesses already exist as registered legal entities. Other participants also join the program from already existing start-ups.
Speaking about the impact of the KIC AgriTech Challenge Pro, Benjamin Gyan-Kesse, Executive Director, highlighted the important role of the training and capacity building in providing the young people with practical training on agribusiness management.
“Every year, young people from the participating universities and colleges develop business solutions tailor made to address some of the critical challenges facing the agricultural sector. Particularly, this year, many of the businesses are focusing on sustainability, green businesses, and circular economies, cutting across different agro-related industries,” he said.
This year 40 teams are pitching from ten universities across the country, with a strong focus on climate related interventions and technology focusing on bio-degradable innovations from waste agricultural produce, carbon reduction innovations, Agric manufacturing implements among others. From climate smart agricultural practices to eco-friendly packaging, the ideas from these young people are contributing to environmental responsibility and reducing the impact of agricultural activities on the environment.
For example, as a start-up, Cas-Tech Glue (Takoradi Technical University) harnesses cassava byproducts and process it into biodegradable, user friendly and multipurpose adhesive (glue) for wood and wallpaper industries. Sunify Solardry Technology (University for Development Studies) is a company that is developing an affordable and portable mobile solar dryer to address post-harvest losses among rural grain farmers. This innovative solution harnesses solar energy to efficiently dry grains, reducing losses and improving income for farmers. For a start-up like Agricem innovations (UBIDS), the need for sustainable construction practices led to the introduction of Rango Cement from rice husk, a renewable agricultural byproduct. This innovative approach significantly reduces the carbon footprint of cement production, addressing environmental concerns.
Greenwood company (University of Ghana) helps reduce carbon footprint to the barest minimum by the production and processing of sanitary tissues, charcoal, plywood and bamboo tea using a very sustainable wood option, Bamboo. On their part, Hyfe Bee (Ho Technical University) is dedicated to sustainable beekeeping practices and the production of high-quality honey, wax, and propolis.
Harvest Ease Innovators (University of Energy and Natural Resources) is a company which focuses on agricultural mechanization in Ghana. Starting with maize, the company builds small harvesters which harvest and de-husk maize from its stalk. Their method is efficient and cost effective compared to traditional way of harvesting maize. Farmercy Technologies Ltd. (KNUST) solves the problem of post-harvest losses for small-scale farmers in Ghana, by preventing farm waste through an innovative solar-powered micro cold storage network.
Out of the 40 teams participating in the competition, some teams will be selected to receive funding support of up to USD50,000, to scale up their operations.
KIC remains committed to developing young entrepreneurs.
Nana Otwasuom Osae Nyampong VI, the Board Chairman of Genser Energy, has raised alarm over illegal mining activities posing a grave threat to newly installed gas pipelines in Ghana’s Ashanti region.
Nana Nyampong highlighted the urgent need for intervention, urging local chiefs to educate their communities about the perilous consequences of such practices.
He cautioned against the perilous combination of illicit mining beneath the gas pipelines and the presence of combustible gas, underscoring the potential for catastrophic explosions.
The chief stressed the paramount importance of prioritising safety over the pursuit of uncertain riches, emphasising the grave risks posed to both miners and the integrity of the pipeline project.
“Those on the right of way have begun prospecting for minerals along our gas pipelines. Simply put, galamseyers have begun digging under our pipelines to see if they can strike it rich overnight. It is a very dangerous enterprise because when you are digging, you are using some force and a little spark of fire may touch the gas and you will lose your life with the explosion that will happen”, the chief warned.
“We will appeal to the chiefs who own these lands on the right of way to educate their citizenry that there is no gainsaying that you are going to look for gold and you may not come back home. You shouldn’t exchange your life for wealth which you may not even get,” he urged in an interview with Accra-based Citi FM.
Meanwhile, Genser Energy, a Ghanaian-owned independent power producer, expressed profound gratitude to all stakeholders involved in the successful completion of a critical 110-kilometre natural gas pipeline.
This vital infrastructure is poised to supply power to the 250-megawatt Kumasi 1 Thermal Power Plant (K1TPP) and future facilities, representing a significant stride in Ghana’s energy landscape.
Constructed with 12,000 steel pipes imported from the US, the Anwomaso Gas Pipeline, spearheaded by Genser Energy, aims to bolster the nation’s power sector by delivering natural gas from the Western Region.
Comprising three phases covering a span of 420km across strategic regions, this network promises to fortify Ghana’s energy sector and facilitate access to affordable energy for regional industries
A recent survey report indicates that about half of African businesses are not aware of the existence of the Pan African Payment and Settlement System (PAPSS).
The report by Future of Trade acknowledges that PAPSS holds immense potential to transform intra-African trade by streamlining payments, reducing costs, and boosting efficiency, achieving widespread adoption across the continent requires overcoming several challenges.
“A significant hurdle lies in the diverse regulatory landscapes, financial infrastructures, and oversight systems across African nations. Central banks need to find ways to reconcile these differences to ensure PAPSS functions smoothly”, the report pointed out.
Establishing a system for settling transactions and determining exchange rates for currencies with fluctuating values presents another challenge. This, it added will be crucial for smooth cross-border transactions.
The report called for comprehensive campaigns to educate businesses about PAPSS and its advantages could significantly accelerate adoption.
Pan African Payment and Settlement System (PAPSS)
“Africa’s business leaders aware of PAPSS are strongly positive about its ability to boost intra-African trade,” the report stated.
Furthermore, a resounding 98% of business leaders acknowledge PAPSS’ potential to positively impact intra-African trade.
The survey also revealed that 98% of business leaders across Africa believe their central banks should expedite participation in the PAPSS network. This strong support highlights the business community’s confidence in PAPSS and their desire to see it implemented widely.
The Report concludes that, PAPSS offered a promising solution for simplifying and enhancing intra-African trade, stating, that by addressing the challenges of regulatory differences, volatile exchange rates, and low business awareness, PAPSS can unlock the full potential of this innovative payment system.
Our editorial team are in awe wondering whose job it is to create the awareness and publicity of the PAPSS. The team are very capable of handling any media publicity campaign and do not mind if contracted with such job for immense results.
Ghana’s current Gross Domestic Product in value terms stood at GH¢841.63 billion in 2023, according to Ghana Statistical Services data.
This shows a significant jump in the economic activities when compared to the GH¢614.33 billion recorded in 2022.
Although, the 2024 value include net indirect taxes estimated at GH¢58.74 billion.
The services sector emerged as the largest contributor, accounting for GH¢357.34 billion or 45.6% of GDP, followed by industry with GH¢247.941 billion (31.7% of GDP), and agriculture at GH¢177.606 billion (22.7% of GDP).
Sub-sectors by share of GDP included Crops (19.4%), Trade and Repair of Vehicles, Household Goods (18.3%), Mining and Quarrying (12.9%), Manufacturing (12.1%), and Transport and Storage (6.0%).
The last quarter of 2023 saw the highest real GDP growth rate at 3.8%, with the industry sector shifting from contraction to expansion by 1.6%.
Gross National Income per capita in local currency doubled since 2018, reaching GH25,349.
However, from a US dollar perspective, income per head has remained relatively steady, ranging from $2,126 to $2,453 in the last six years.
The Ghanaian economy expanded by 2.9% in 2023, surpassing the Finance Ministry’s revised forecast of 1.5% but falling slightly short of the 3.1% growth recorded in 2022.
However, this growth rate represents a slight deceleration from the 3.1% recorded in 2022.
The GSS reported further indicated that the industry sector contracted by -1.2% in 2023, compared to a 0.6% GDP growth in 2022, despite remaining the largest segment of the economy.
The Electricity and Construction subsectors experienced significant contractions of 10.9% and 9.9% respectively, contributing to the overall decline.
Only the Mining and Quarrying subsector saw growth, at a rate of 2.5%.
Government Statistician, Professor Samuel Kobina Annim, noted a higher growth rate of 3.8% in the last quarter of 2023, driven by the oil and gas subsector.
This marks the first time in over a year that Ghana has seen an increase in oil GDP growth.
Over the past 11 years, four subsectors (Crops; Trade, Repair of Vehicles and Household Goods; Mining and Quarrying; and Manufacturing) have consistently contributed over 50.0% to Ghana’s GDP. Recent years have seen this share increase to over 60.0%, indicating a shifting economic landscape.
The Electronic Transactions levy (E-levy) collections for the year 2023 stood at GH¢1.19 billion.
This reflects remarkable increase in the collections compared to the previous year’s collection of GH¢106.79million, although, the 2022 collections was affected by other factors.
However, the revenue line witnessed a decline at the beginning of 2023 due to a reduction in its rate from 1.5 percent to 1 percent. During the first quarter of 2023, the E-levy generated GH¢246.9million. Implementation of E-levy took effect on 1 May 2022. The E-levy charge covers mobile money payments, bank transfers, merchant payments, and inward remittances (Ghana Revenue Authority, 2022).
“Last year, E-levy generated GH¢1.19 billion and as part of dealing with the job situation… unemployment situation, the government has committed funds through YouStart from this E-levy sources…to GEA and NEIP to address the unemployment situation in the country”, Dr. John Kumah, Deputy Minister of Finance, revealed last week.
“I am happy to announce that institutions like Wealth and Jobs Expo and all private groups that are willing to help create jobs in the private sector will also be supported to help create jobs and businesses in the private sector.”
The Ghana Statistical Service last week announced that about 1.5 million Ghanaian youth are unemployed.
Dr. John Kumah in response to the latest figures from the Ghana Statistical Service on the unemployment indicated that, to help ameliorate the situation, government allocated funds from the E-levy collection to the YouStart Programme, the Ghana Enterprise Agency, and the National Entrepreneurship and Innovation Programme to combat unemployment in the country.
He further highlighted the government’s efforts in attracting investments into the country while spurring job creation, emphasizing the need for belief in entrepreneurship to address the unemployment rate.
“In the medium term, the government aims to intensify efforts to attract domestic investments and FDIs [Foreign Direct Investments] in strategic centres with emphasis on creating jobs anchored on the government’s growth strategy. The strategy is projected to contribute to the creation of approximately 500,000 jobs.
“We are not saying 1.5 million [unemployed youth], every one of them should create jobs. No. Even if we get it, we get 10% of them, it’s 150,000 who will become entrepreneurs. If they do an average of let’s say 100 jobs….150,000 x 100, you have almost solved the unemployment problem,” the Deputy Minister of Finance added.
The United Bank for Africa (UBA) Ghana last week cut sod for its new state-of-the-art head office building project located at West Cantonments in Accra.
The event was graced by esteemed dignitaries, including government officials, customers of the bank, project consultants, architects, engineers, religious leaders, and prominent figures within the banking sector.
Speaking at the ceremony, Abiola Bawuah, Executive Director & CEO, of UBA Africa, noted, “This building will be more than just bricks and mortar. It’s a symbol of our long-term commitment to the Ghanaian people, a commitment to growth and prosperity.
She further reiterated that “UBA Ghana is not just building a physical structure, we are laying the foundation for enhanced financial services, innovative solutions, and impactful partnerships that will contribute to the socio-economic development of Ghana and beyond.”
Addressing the gathering, he expressed his gratitude to all customers of the bank for their unwavering support over the years, saying, “Together, we are crafting a narrative of progress and success, and I am very confident that the new UBA Ghana Head Office will stand as a beacon of excellence.”
“As we embark on this architectural venture, let us keep in mind the core values that define UBA – Enterprise, Excellence, and Execution. Our mission to be a role model for African businesses is fortified by the determination we showcase today,” says Mr. Awotwi.
Chris Ofikulu, MD of UBA Ghana and Regional CEO of UBA West Africa commented that “This is a very important event in the history of UBA Ghana as it signifies the end of our long-trudged push to owning a head office building of our own. This journey, of actualizing our Head office building, has not been without hiccups, but we thank God that we have overcome all the challenges leading to this epic milestone.”
UBA remains dedicated to providing world-class banking solutions, leveraging technology to enhance customer experiences and drive financial inclusion across Ghana. The new head office signifies the bank’s unwavering commitment to serving its customers better and fostering economic development in the communities it operates in.
PRESS Release: Mastercard Foundation Africa Growth Fund breaking barriers – expands its portfolio with three new deals empowering African entrepreneurs
Mastercard Foundation Africa Growth Fund
Accra, Ghana, 04 December 2023 – The Mastercard Foundation Africa Growth Fund (the Fund) is pleased to announce that three Investment Vehicles (IVs) received investment approvals: Chui Ventures, VestedWorld, and SME Impact Fund.
These strategic investments mark a milestone for the Fund as it expands its total to five funds, solidifying its commitment to fostering impactful investments for sustainable economic growth across Africa.
“We are excited to welcome Chui Ventures, Vested World, and SME Impact Fund to our expanding family of investment vehicles,” says Samuel Akyianu, Managing Director of the Mastercard Foundation Africa Growth Fund. “These strategic partnerships represent our ongoing commitment to fostering sustainable development in Africa through impactful investments. Stay tuned for more developments in the very near future.”
In the past twelve months, the Fund has also invested $2.2 million in Aruwa Capital Management of Nigeria, and another $5 million in Inua Capital – a Ugandan first-time fund manager aiming to provide catalytic risk capital to more than 30 small and medium-sized enterprises (SMEs). The investment plan with Inua is to develop Uganda’s market leaders. Inua Capital prioritizes gender inclusivity, creating jobs with respectable wages, and building a sustainable investment ecosystem.
African-owned and domiciled funds are perceived as risky, limiting both their ability to secure financing to scale and their potential to drive growth and employment. African IVs therefore need to be catalytic to address economic challenges, promote entrepreneurship, and leverage sustainable growth. As a pioneer Fund of Funds, the Mastercard Foundation Africa Growth Fund’s investments in IVs lowers the risk and serves as a pivotal player in driving continental economic transformation.
“This investment validates our effort to drive African innovation and entrepreneurship, and we are eager to unlock the potential of these promising ventures,” says Joyce Ann Wainaina, Managing Director of Chui Ventures. “It will be a game-changer for exceptional African start ups, enabling Chui to supply what they need to flourish. Our experience in global corporate banking, private equity, and wealth management makes us well-equipped to guide these startups through early growth stages.”
Chui Ventures is led by Joyce-Ann Wainaina, a first-time fund manager who is dedicated to backing gender-inclusive startups in Kenya and Nigeria; the Mastercard Foundation Africa Growth Fund is anchoring this fundraise with a $9 million commitment that will help the fund reach its $20 million target.
“We are excited to partner with the Mastercard Foundation Africa Growth Fund. The deal will strengthen high-potential African start-ups and provide them with what they need to succeed,” says Nneka Eze, General Partner and Managing Partner of VestedWorld. “Together, we aim to drive economic transformation and unlock the immense entrepreneurial talent across the continent.”
Focused on burgeoning industries, VestedWorld is a Venture Capital Fund that targets investments in Ghana, Kenya, and Nigeria. The fund has received a commitment of $10 million from the Mastercard Foundation Africa Growth Fund that will be deployed in early-stage, high potential companies. The Fund will be providing the first institutional investment to this fund. VestedWorld aims to catalyze meaningful job creation, ensure fair wages, and stimulate broad based economic progress across communities and regions.
Based in Arusha, Tanzania, the SME Impact Fund will receive a commitment of $8 million. Its philosophy is that addressing the financing challenges of smallholder farmers and SME food processors, in turn, unlocks the commercial agricultural potential of smallholder farmers.
“Smallholder farmers are the backbone of African agriculture, and their potential remains largely untapped due to financial constraints,” says Allert Mentink, Chief Executive Officer of SME Impact Fund. “Our partnership with the Mastercard Foundation Africa Growth Fund is a significant step towards addressing them. By funding agribusiness SMEs, we’re helping the agricultural sector and empowering the farmers themselves. This collaboration proves our commitment to transforming the lives of smallholder farmers and driving sustainable agricultural growth across the continent.
The Africa Growth Fund is an initiative of the Mastercard Foundation, managed and implemented by Mennonite Economic Development Associates (MEDA) along with a strategic consortium of partners. This consortium is composed of key entities, each playing a unique and crucial role in the success of the Fund. Our partners include Investisseurs & Partenaires (I&P) as the Fund Advisor, ESPartners (ESP) as the Business Development Services (BDS) provider, Criterion Institute as the Gender Equity Diversity and Inclusion Partner, Genesis Analysis as a Measurement, Evaluation, Reporting and Learning Partner, and Africa Communications Group as a Communications and Public Engagement Partner.
Building on its successes with Aruwa Capital Management and Inua Capital, the Fund anticipates further expansion of its reach and impact with the addition of Chui Ventures, VestedWorld, and SME Impact Fund; ultimately demonstrating investment as a catalyst for change and solidifying the Fund’s commitment to sustainable development of the continent.
ENDS
About the Mastercard Foundation African Growth Fund (The Fund)
The Mastercard Foundation Africa Growth Fund is a $200 million (USD) impact-investing initiative by the Mastercard Foundation. It works through African investment vehicles to support early-stage, growth-oriented SMEs on the continent, to enable dignified and fulfilling work for young people, particularly young women. The Mastercard Foundation Africa Growth Fund is catalytic, helping to crowd in additional capital for African entrepreneurs, particularly female entrepreneurs, by strengthening and de-risking African investment vehicles that are committed to advancing gender equity in entrepreneurship. For more information visit: www.africagrowthfund.org
About the Mastercard Foundation
The Mastercard Foundation is a registered Canadian charity and one of the largest foundations in the world. It works with visionary organizations to advance education and financial inclusion to enable young people in Africa and Indigenous youth in Canada to access dignified and fulfilling work. Established in 2006 through the generosity of Mastercard when it became a public company, the Foundation is an independent organization separate from the company, with offices in Toronto, Kigali, Accra, Nairobi, Kampala, Lagos, Dakar, and Addis Ababa. Its policies, operations, and program decisions are determined by the Foundation’s Board of Directors and leadership.
For more information on the Foundation, please visit www.mastercardfdn.org. About Mennonite Economic Development Associates (MEDA)
MEDA has been implementing market-driven programs globally for 70 years. It combines innovative financial and technical expertise to provide sustainable agri-food systems with decent work for people living in poverty focusing on systematically marginalized communities, including women and youth. Our core expertise lies in market systems, environmental sustainability, and climate action, gender equality and social inclusion, inclusive financial services, and impact investment. MEDA focuses on sustainable and inclusive systemic change by partnering with local private, public, and civil society actors, strengthening individuals, institutions, communities, and ecosystems. For more information please visit: https://meda.org
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The Ghanaian economy has begun to show signs of recovery on the back of robust measures put in place by government to address the challenges the country has faced since March 2020, the 2024 budget statement as present to Parliament indicated.
This is evident by the half year average growth rate of 3.2 percent recorded in 2023 compared to 2.9 percent recorded for the same period in 2022.
The agricultural sector remains a key driver of Ghana’s economy, employing an average of
38.3 percent of the total work force and contributed an average of 20 percent of GDP
between 2017 and 2022. The sector’s GDP grew at an average rate of 6.3 percent between
2017 and 2021 boosted by Government’s flagship program – Planting for Food and Jobs (PFJ).
As of 2022, Aquaculture employed approximately 30,000 people in both rural and urban
communities who worked on small- and large-scale farms to produce 133,000mt of fish.
The Growth Strategy aims to boost fish production mostly through increased focus on oceanic and inland earthen ponds. The goal is to support fishermen, fish farmers, fish processors, and marketers to produce more fish as substitute for imports and thereby ease the pressure on marine fishing.
Government has identified strategic industries to anchor the growth of the Ghanaian manufacturing sector. These Strategic Anchor Industries are being complemented by the flagship 1D1F programme. The Free Zones Authority and the Export Promotion Authority in collaboration with the Ghana Investment Promotion Centre will facilitate investment into these industries.
Ghana aims to be the regional manufacturing hub for West Africa. The 15-month Growth Strategy leverages on the 1D1F and Free Zones projects to attract investments into the industries and create massive job opportunities in Ghana.
The Strategy seeks to increase export revenue through the Ghana Free Zone Authority (GFZA) and the Ghana Export Promotion Agency (GEPA). The 15-month targets for the GFZA and GEPA are as follows:
64 additional companies will be licensed by GFZA by end December 2024. This will
increase the number of companies from 207 to 271. This is expected to increase export
earnings from US$1.8bn (indicate year) to US$2.19bn (2024).
Capital investment by licensed Free Zone Companies increased from US$131m (2022)
to US$370m (2024)
5,000 additional jobs will be created by the end of 2024;
Earnings from Non Traditional Exports (NTEs) are increased from US$3.51bn (2022)
to US$4.8bn (2024);
Volume of NTEs is expected to increase from 3.46m mt (2022) to 4.2m mt (2024);
20,000 additional jobs will be created by NTE companies by the end of 2024;
Give 50 companies support to access African markets under the AfCFTA Agreement
Government intends to provide skills training for theyouth. This will be achieved through partnerships with TVET institutions, nationally designated Tech hubs and other similar institutions utilising Tech platforms and training programs provided by Google, Andela, MEST, Soronko Academy, among others. The objective is to ensure the youth are having the requisite skills to compete in both the local
and global market.
In 2022, there was an increase in the total number of jobs (both direct and indirect) created
by the tourism sector. Specifically, 277,985 jobs were created, marking a 10 percent increase
from the 252,714 jobs created in 2021. To bolster this trend, the Growth Strategy training
will be provided to 6,000 young people engaged in various aspects of the tourism value chain,
including cooks, security personnel, and tour guides.
The Ghana Mutual Prosperity Dialogue (GMPD) serves as a special platform for government
and the private sector to dialogue on the challenges and opportunities with the ultimate aim
of promoting mutual prosperity through an enabling environment for doing business.
Boosting Access to Finance by domestic investors: The strategy sets ambitious but attainable targets premised on improving ease of access to finance by leveraging the financial ecosystem. The Development Bank Ghana, GIRSAL, Ghana Export and Import Bank, Consolidated Bank Ghana, Venture Capital Fund, Ghana Investment Infrastructure Fund (GIIF) and the Ghana Commodity Exchange will support private entrepreneurs with loans, partial guarantees and venture capital.
The establishment of the Development Bank Ghana (DBG) has been critical in fostering economic growth and providing long term finance to vital sectors of the Ghanaian economy, thereby creating jobs and sustaining SMEs. In about 2 years, DBG has loaned a total of GHS829 million (out of a target of GHS1 billion) through Participating Financial Institutions (PFIs). Of this, GHS 110 million was directed towards Gender Finance, while GHS 19.7 million was allocated to green finance deals to promoting gender equality and sustainable practices.
Additionally, GHS 385.3 million was disbursed to high-value services, GHS 122.2 million to Manufacturing, GHS 212.5 million to enhance Food Security, focusing on maize, soya, rice, and poultry value chains.
Since its inception, the GCX has facilitated the trade of close to 50,000mt (1,000,000 bags) of largely maize, rice, soya, and cashew nut (through spot, Over the Counter (OTC) and auction trades) at a trade value of over GHS280 million from eight warehouses located in Ashanti, Bono, Ahafo, and the Northern Regions of Ghana.
In 2024, GCX is expected to increase the number of commodity listings on the exchange to include cowpea, sheanuts, and some cash crops through five new warehouses (out of expected 40 for the next 5 years). Some of the success factors of the GCX include collaboration with Venture Capital Trust Fund (VCTF), Ministry of Food and Agriculture (through the Enhanced Planting for Food and Jobs Programme), and the Ministry of Education (for the implementation of the Free Senior High School project).
As part of measures to increase access to Long-term Finance for SME’s, the Venture Capital Trust Fund has established two (2) new Funds: The Startup Catalyst Fund (SCF) and Strategic Industries Funds (SIF) under the Ghana Economic Transformation Project (GETP). Through these Funds, the Trust Fund has committed US$16 million into four (4) funds namely: Injaro Ghana Venture Fund, Industrial Support Fund, Mirepa SME Fund and Wangara Green Ventures. These funds are expected to yield a minimum of about US$150 million through private sector participation.
Ghana Incentive- Based Risk-Sharing System for Agricultural Lending (GIRSAL) will provide GHS 350million in partial risk guarantees to leverage private sector participation in the agricultural and agri-business sector. Relying on the GHS 350million guarantee, banks will be able to lend about GHS 700million to the agricultural sector and agri-business. GIRSAL guarantees help to reduce banks’ risk perception of the agricultural sector and encourages them to increase lending at slightly lower rates and longer tenor.
As part of efforts to address the high rate of youth unemployment in the country, Government designed the YouStart initiative with the aim of creating 1 million jobs for the youth within a five-year period of its implementation. Through this initiative, Government is providing training, funding, access to market and technological support to the youth (between the ages of 18-40 years) to assist them start, build and grow their own businesses.
The Minister Finance announced last week moderate macroeconomic targets for the year 2024 as captured in the 2024 budget.
Guided by the medium-term policy objectives, the government is targeting a moderate real Gross Domestic Product (GDP) to grow at an average rate of 2.8 percent in 2024-2027.
With Non-Oil Real GDP expected to grow at an average rate of 2.1 percent in 2024-2027 and 5 percent from 2027 onwards.
But, for what can be described as over-ambitious, the government targets inflation to be within the target band of 8±2 percent by end-2026. However, inflation is expected to end 2024 at 15.0%.
“Inflation is expected to remain within the IMF programme’s Monetary Policy Consultation Clause (MPCC) of 29.4 percent, with a symmetric band of 4.0 percent at the end of 2023, and trend further down within the medium-term target of 8±2 percent by end-December 2025”, Ken Ofori-Atta read.
A Primary Balance on Commitment basis to a surplus of 0.5 percent of GDP in 2024, and 1.5 percent of GDP in 2025 onwards; and
Meanwhile, Gross International Reserves is also expected to cover at least 3.5 months of imports by end-2027.
“The Services sector is expected to remain the dominant sector over the medium-term in terms of percentage contribution to overall national output, followed by Industry and Agriculture”, the minister emphasized.
“The external sector performance will largely depend on the conclusion of negotiations with the country’s external creditors. Also, the Bank of Ghana’s policy thrust will remain focused on increasing external buffers through sustainable means. The exchange rate is expected to remain stable, supported by continued progress with the implementation of the IMF Supported Programme.
“Consistent with the fiscal and debt sustainability objectives over the medium-term, the commitment basis primary balance has been programmed to improve from an estimated deficit of 0.5 percent of GDP in 2023 to a surplus of 0.5 percent of GDP in 2024.”
