News Guide Africa

Category: Technology

  • ECOWAS Heads of State meets on Niger coup…give one week ultimatum to reinstate Bazuom

    Adnan Adams Mohammed

    Heads of State of ECOWAS member countries have concluded an emergency meeting held at Abuja to discuss the Niger Coup d’etat.

    In their resolutions, the meeting attended by 12 Heads of State including representative of the ousted Niger President, Mohammed Bazuom, agreed on a land and air border closure and no a no fly zone decision be immediately implemented again the military junta.

    Also, Suspension of all commercial and financial transactions between ECOWAS Member States and Niger; Freeze of all service transaction including utility services; and Freeze of assets of the Republic of Niger in ECOWAS Central Banks were some of the tough decisions taken against the military junta.

    They were contained in a communique signed and issued at the end of the emergency meeting held yesterday.

    Below are the full resolutions:

    10 a. Affirm that His Excellency President Mohamed BAZOUM remains the legitimate elected President and Head of State of The Republic of Niger
    recognized by ECOWAS, the African Union and the International community; In this regards, only official acts of President Bazoum or his
    duly mandated officials will be recognized by ECOWAS;
    b. Condemn in the strongest terms the attempted overthrow of constitutional order in Niger and the illegal detention of His Excellency President
    Mohamed Bazoum, President and Head of State of Niger, as well as members of his family and Government;
    c. Call for the immediate release and reinstatement of President Mohamed Bazoum as President and Head of State of the Republic of Niger, and for the full restoration of constitutional order in the Republic of Niger;
    d. Reject any form of resignation that may purportedly come from His Excellency President Mohamed Bazoum;
    e. Consider the illegal detention of President Bazoum as a hostage situation and hold the authors of the attempted coup d’état solely and fully responsible for the safety and security of His Excellency President Mohamed Bazoum, as well as members of his family and Government;
    f. In the event the Authority’s demands are not met within one week, take all measures necessary to restore constitutional order in the Republic of
    Niger. Such measures may include the use of force; To this effect,the Chiefs of defense staff of ECOWAS are to meet immediately;
    g. Hold accountable all those responsible for violence and terror against lives and properties of innocent citizens and residents;
    h. Condemn the pronouncement of support by foreign governments and foreign private military contractors;
    i. Express appreciation to the various governments and partners for their stance and solidarity with ECOWAS;
    j. Appoint and dispatch a special representative of the Chair of the Authority to Niger immediately to deliver the demands of the Authority;
    k. In the meantime, the following measures are to be applied with immediate effect:
    1. Closure of land and air borders between ECOWAS countries and Niger;
    2. Institution of ECOWAS no-fly zone on all commercial flights to and from Niger;
    3. Suspension of all commercial and financial transactions between ECOWAS Member States and Niger;
    4. Freeze of all service transaction including utility services;
    5. Freeze of assets of the Republic of Niger in ECOWAS Central Banks;
    6. Freeze of assets of the Niger State and the State Enterprises and Parastatals in Commercial Banks;
    7. Suspension of Niger from all financial assistance and transactions with all financial institutions, particularly, EBID and BOAD;
    8. Travel ban and asset freeze for the military officials involved in the coup attempt. The same applies to their family members and the civilians who accept to participate in any institutions or government established by these military officials;
    9. Calls on WAEMU and all other regional bodies to implement this decision.
    l. Express appreciation to His Excellency Bola Ahmed Tinubu, President and Head of State of the Federal Republic of Nigeria for the manner in
    which he has been conducting the affairs of the community since his election as Chair of the ECOWAS Authority.

    Done at Abuja, this 30th day of July 2023.

    FOR THE AUTHORITY

  • WB outcry worsening food security and poverty in Ghana due to untamed inflation 

     

    Adnan Adams Mohammed

     

    The World Bank has said Ghana’s hyperinflationary trend being experienced by economy since 2022 has heightened food security and poverty levels.

     

    The Bank is alarmed with the rate of increase in prices across all consumer categories, which are significantly impacting the living standards of Ghanaians, especially the poor.

     

    The latest Ghana Economic Update released by the World Bank, last week, took cognizance of how the Ghanaian economy is grappling with a severe inflation crisis that has unleashed devastating consequences on the vulnerable. It further indicated that, the erosion of purchasing power resulting from inflation has led to a decline in living standards for Ghanaian households.

     

    “In 2022, the minimum wage in Ghana saw a 10 percent increase. However, this increase was overshadowed by the staggering inflation rate, causing real incomes of minimum-wage workers to plummet by nearly 44 percent. Consequently, the average purchasing power of these workers declined by 15.7 percent throughout the year”,

     

    The report reveals that 20 percent of the population experienced a significant loss of purchasing power, amounting to 16.1 percent in 2022.

     

    “Surprisingly, the richest 20 percent also suffered a notable decline in purchasing power, losing 15.5 percent. While the wealthy lost more purchasing power in absolute terms, the impact was less burdensome compared to their total expenditure.”

     

    The Economic Update highlights that average prices for all Classification of Individual Consumption According to Purpose (COICOP) categories experienced a stark increase in 2022 compared to the previous year.

     

    While non-food inflation was notably high, at an average of 29 percent in 2022, food prices soared even higher, escalating by an average of 34 percent.

     

    This disparity has disproportionately affected the poor, who allocate a larger share of their budget to food and are thus more severely impacted by the rising prices.

     

    Simulations conducted in the report indicate that approximately 850 thousand Ghanaians were pushed into poverty in 2022 due to the combination of rising prices and the loss of purchasing power.

     

    Furthermore, food security in the country deteriorated considerably. The number of food insecure individuals jumped from 560,000 to 823,000 in the last quarter of 2022.

     

    By the end of the year, one-quarter of the population were classified as food insecure, a trend expected to persist into 2023.

     

    To combat the adverse effects of inflation on food security, the World Bank’s Ghana Economic Update highlighted several policy recommendations.

     

    “The government must prioritize investments in agriculture, including research, development, and technology transfer, to enhance productivity, reduce production costs, and improve food quality and safety. Diversification of income sources, improved connectivity, and market access can help households better cope with shocks and seize opportunities.”

     

    The report additionally emphasised the importance of investing in climate-smart agriculture initiatives.

     

    Furthermore, the Economic Update recommends allocating resources towards developing rural infrastructure, including better roads, irrigation channels, and improved primary education.

     

    To alleviate the immediate impact of high food prices on vulnerable households, the report emphasised the need to enhance social protection programs.

     

  • 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.

     

  • 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”.

     

  • 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.

     

     

  • GIPC optimistic of IMF’s role in Ghana’s economic recovery

    Adnan Adams Mohammed

     

    The Ghana Investment Promotion Centre (GIPC) has expressed optimism regarding Ghana’s economic prospects despite the ongoing cost of living crisis and inflationary pressures.

     

    The Center has called on the economic managers to leverage on the benefits of the International Monetary Fund (IMF) program to restore, reform, and recalibrate Ghana’s economic fortunes.

     

     

    Despite recounting the sluggish rebound of the global economy but remained confident that Ghana could overcome its current challenges. GIPC top official acknowledged that, in the immediate post-IMF era of 2017, Ghana achieved an average annual growth rate of about 7%. During that time, the country was widely recognized for its sound financial management and policy innovation, earning commendation from international observers.

     

    “While we currently face hurdles in terms of the cost of living crisis and inflationary pressures on food, fuel, and finance, we must not forget that Ghana has demonstrated its resilience before,” Yaw Amoateng Afriyie, the Deputy CEO of GIPC said while addressing audience comprising economists, policymakers, and industry experts, at a recent Financial Economics Seminar held in Accra.

     

     

    “The foundations of our economic growth and stability remain intact, and it is crucial that we utilize the benefits of the IMF program to navigate through these challenging times,’ he said

     

    Mr. Afriyie further emphasized that Ghana, under the leadership of President Nana Akufo-Addo, had taken significant strides to create an enabling environment for business and investment.

     

    He reiterated the GIPC’s continues to work towards attracting both domestic and foreign investments by streamlining procedures, improving infrastructure, and ensuring policy consistency.

     

    “We firmly believe that there is no better place to do business than here in Ghana,” Afriyie declared.

     

  • Ghana to get US$6.2bn from multilaterals to rebuild economy

     

    Adnan Adams Mohammed

     

     

    The government is expecting to receive a total of US$6.2 billion from its multilateral agencies to support the rebuilding of the collapsed economy.

     

    These supports coming from the International Monetary Fund, World Bank and AfDB in the next three years will support the economic reformation programme of the debt-riddened West Africa’s once promising economy.

     

    The embattled Finance Minister disclosed when he updated Ghanaians on the economy at a news briefing, last weekend.

     

    “US$2 billion will hit Ghana’s account by the end of 2023”, Ken Ofori-Atta said. “Our commitment to these reforms is matched by our relentless pursuit of innovation and strengthened partnerships.”

     

    Mr Ofori-Atta said: “Backed by the renewed drive for reforms, the government is working towards securing significant support from our multilateral partners”.

     

    “Altogether, and including the IMF funds, World Bank and AfDB support, we expect multilateral support of about US$2.0 billion for 2023 and US$6.2 billion between 2023 and 2026”, he explained.

     

    “We expect the World Bank to provide a total support of US$1.6 billion while the AfDB provides a total support of US$200 million over the programme period”, he added.

     

    Also, he said: “We expect to mobilise catalytic funding of US$30 million in 2023 and US$330 million between 2023 and 2026 from bilateral creditors”.

     

    US$3bn IMF deal ‘not end to our current challenges, the real work has just begun’– Ofori-Atta warns

     

    At the same briefing, Mr Ofori-Atta warned that the US$3-billion-three-year IMF programme secured by Ghana is not the end to the country’s economic woes.

     

    Rather, he said it marks the beginning for taking tough decisions to reset the economy on track.

     

    Mr Ofori-Atta said: “We have an ambitious agenda reform”, but caveated: “Let me state clearly that securing an IMF programme is not an end to our current challenges though it has significantly paved the way for the implementation of an ambitious and well-thought-out programme of reform for our economy and country”.

     

    “In fact”, he noted, “the real work of adjustment, realignment, and the path to steady economic growth has just begun”.

     

    “Let us brace ourselves for the needed reform, especially in expenditure control, non-arrears accumulation, revenue growth, ECG revenue collection, and energy sector reforms in order to rebuild the walls of the republic with urgency”, Mr Ofori-Atta said.

     

    He explained that the Post Covid-19 for Economic Growth reform programme now supported by a three-year extended credit facility with the IMF, “is built on clear targets and strong policy and structural measures”.

     

    “Over the medium term, the economic growth-backed IMF programme seeks to promote a credible fiscal consolidation programme anchored by strong domestic revenue mobilisation and high spending efficiency”, indicated Mr Ofori-Atta.

     

    Ghana has already received the first tranche of $600 million on 19 May 2023 right after the Fund’s executive board approved the deal.

     

     

  • Locked up monies on deactivated MoMo accounts numbers to be retrieved for owners

    Adnan Adams Mohammed

     

    Relief to owners of SIM cards who have their numbers deactivated but had monies in their mobile money accounts are to receive their monies soon as Ministry of Communications and Digitalisation and Bank of Ghana complete the process to facilitate the retrieval of the locked up funds.

     

    Providing an update on the status of the SIM re-registration exercise in Parliament, last week, the Minister of Communication assured affected subscribers that, while they won’t be able to conduct mobile-related transactions with their deactivated SIMs, their funds will be recovered through the necessary processes.

    As part of a nationwide re-registration exercise of all SIM cards using the Ghana Card as the only source of identity in the country to help curb increasing cyber and mobile phone related crimes in the country, the National Communication Authority and the Telecommunication Companies deactivated a number of unregistered SIM cards. This resulted in a number of mobile phone users crying out as their monies were locked on the blocked numbers.

     

    “We continue to encourage the National Identification Authority (NIA) to assist people to acquire their Ghana Card. We have also been made aware of the difficulties facing subscribers in accessing their funds on their mobile money wallets”, Ursula Owusu-Ekuful sympathised with victims while speaking in parliament.

     

    “These subscribers will not be able to transact money mobile-related activities, however, we are working with the Bank of Ghana to ensure that these subscribers are able to retrieve funds upon the presentation of a valid ID and going through the required processes.”

     

     

  • Telcos, BoG to collaborate to retrieve locked funds on MoMo accounts – Ursula

    The Minister of Communications and Digitalisation, Ursula Owusu-Ekuful, has announced that Mobile Network Operators (MNOs) are working with the Bank of Ghana to facilitate the retrieval of funds for individuals whose monies are locked up in mobile money accounts.

     

    Numerous subscribers have voiced their concerns regarding the inability to access their funds on mobile money accounts after their SIM cards were deactivated for failing to re-register them.

     

    Providing an update on the status of the SIM re-registration exercise in Parliament on Thursday, June 8, Ursula Owusu-Ekuful assured affected subscribers that while they won’t be able to conduct mobile-related transactions with their deactivated SIMs, their funds will be recovered through the necessary processes.

     

    “We continue to encourage the National Identification Authority (NIA) to assist people to acquire their Ghana Card. We have also been made aware of the difficulties facing subscribers in accessing their funds on their mobile money wallets.

     

    “These subscribers will not be able to transact money mobile-related activities, however, we are working with the Bank of Ghana to ensure that these subscribers are able to retrieve funds upon the presentation of a valid ID and going through the required processes.”