News Guide Africa

Category: Technology

  • World Bank’s boss untimely exit linked climate change comment

    World Bank’s boss untimely exit linked climate change comment

    Adnan Adams Mohammed

     

    All things being equal, World Bank president will vacate his highest profile job middle of this year.

     

    David Robert Malpass, an American economic analyst and former top government official, indicated his willingness to resign this year for reasons unknown yet.

     

    Although, some commentators have juxtaposed his decision to pressure from within the United States government for his unpopular comment on climate change. Despite his apology to the global community after the White House had rebuked him for publicly doubting if fossil fuels were driving climate change.

     

    In a sharp contrast, in his recent statement on social media announcing his resignation, he said; Financing “including climate financing” had reached record levels under his leadership.

     

    “By the end of the fiscal year, we will be well-positioned to feature sustainability more clearly in the mission of the World Bank Group, align the mission with resources, and set in motion an effective evolution to increase the institution’s impact on people in the developing world,” he wrote in a statement shared on LinkedIn.

     

    Appointed by former US President Donald Trump, started his five-year term in April 2019, after serving in the US Department of Treasury during the Trump administration.

     

    Mr Malpass, who was sceptical of multilateral institutions, had long been seen as a controversial pick to lead the World Bank.

     

    BBC report had indicated that, at an event in September, former US Vice President Al Gore called for his replacement, saying the bank was not doing enough to raise funding for climate issues and it was “ridiculous to have a climate denier as the head of the World Bank.”

     

    Asked later to respond, Mr Malpass defended himself, but declined to say that fossil fuels caused climate change.

     

    In a subsequent interview with CNN, he said he had not done a good job answering or hearing the question and that man-made emissions were “clearly” contributing.

     

    US Treasury Secretary Janet Yellen, who has been pressing for reform at the World Bank and other development banks, thanked Mr Malpass for his service in a statement that alluded to the controversy.

     

    “While we all must continue to raise our collective ambitions in the fight against climate change, during President Malpass’ tenure the World Bank has made important recent advances in this area,” she said.

     

    She said the US would put forward a new candidate to lead the bank soon.

     

    The US is the World Bank’s largest shareholder and a major source of its funding.

     

    An American has led the institution since its start in the 1940s, when it was created to help rebuild Europe in the aftermath of the Second World War.

  • DDEP to weigh on balance sheet of banks – Fitch Solutions

    DDEP to weigh on balance sheet of banks – Fitch Solutions

    The Domestic Debt Exchange Programme is likely to weigh on the balance sheets of banks in Ghana and consequently reduce credit to the private sector, Fitch Solutions has revealed in January 2023 Sub-Saharan Africa Market Update.

     

    According to research and market information firm, the reduction in loans particularly to corporate institutions will impact on the real sector of the economy.

     

    Senior Country Risk Analyst in charge of Sub-Saharan Africa, Mike Kruninger, said this should be a woke up call to the government.

     

    “When talking about access to credit, another factor that I think is really important to mention here is Ghana’s Domestic Debt Restructuring Programme. So long as negotiations are still ongoing, the likely restructuring of domestic debt will weigh on commercial bank’s balance sheet”.

     

    “This will weaken their ability to issue loans to corporates to further restricting access to credit for businesses”, he added.

     

    According to the Monetary Policy Committee January 2023 Report,  private sector credit growth picked up, partly reflecting continued portfolio rebalancing by banks and revaluation effects on foreign currency denominated credit.

     

    In nominal terms, private sector credit increased by 31.8% in December 2022, compared with 11.2% percent in December 2021. In real terms, however, private sector credit contracted sharply by 14.5%, compared with 1.3% contraction over the review period, reflecting sustained price pressures.

     

    Furthermore, Mr. Kruninger also warned of a social unrest in 2023 if inflation continues to remain high.

     

    “Given the high levels of consumer price inflation that we still seeing rising taxes under the IMF programme and then higher interest rates, we believe that political instability is likely to rise in Ghana in 2023”.

     

    “So you can see that Ghana’s short-term political risk index has been on a downward trend for the past 12 months”, he added.

  • Ghana, Zambia fiscal challenge to persist due to elevated funding costs – RMB

    Ghana, Zambia fiscal challenge to persist due to elevated funding costs – RMB

     

    Rand Merchant Bank is warning of constrained fiscal policy in African countries such as Ghana and Zambia due to elevated costs of funding.

     

    The two countries are presently undertaking debt restructuring to bring their debt levels to sustainable levels.

     

    In its forecast for the year 2023, the South African based research arm of First National Bank, said it expects further reliance by African countries on multilateral and domestic funding to support the various country deficits.

     

    “Fiscal policy will remain constrained across most markets, partly due to elevated costs of funding. Nevertheless, we expect further reliance on multilateral and domestic funding to support the various country deficits”.

     

    “Similarly, the impact of debt sustainability will remain a theme as was seen during the pandemic. Focus in 2023 will be on debt restructuring in markets like Ghana and Zambia, as well as observing vulnerabilities in other markets”, it said.

     

    Growth to remain divergent

     

    Furthermore, Rand Merchant Bank said growth is expected to be divergent and heavily dependent on commodity price movements throughout the year.

     

    “Investment in key sectors such as mining, agriculture, logistics and energy will continue, but within reason given the higher cost of funding and the lacklustre global backdrop”, it added.

     

    Inflation to remain above long-term average

     

    On inflation, it said while it is expected to ease across the continent, it will remain structurally above its long-term average.

     

    “Combined with high interest rates and further shocks that could emanate from the oil market, we are concerned about personal consumption expenditure as real incomes decline given the strain on consumers. We expect most countries to reach the peak of their hiking cycle by the first half of next year (barring further shocks to inflation).”

     

    Meanwhile, Rand Merchant Bank said the Russia-Ukraine war remains the key geopolitical risk.

     

    “We continue to observe the effects of the sanctions against Russia and their disruptive nature on oil prices and on broader supply chains. The current EU ban on Russia’s seaborne crude and the expected ban on imports of refined oil products from Russia in first quarter 2023 are some of the challenges that will add volatility in the energy market’.

     

    “China — Africa’s key trading partner — is expected to gradually recover next year given its commitment to relax the strict covid-19 policies. This move, if sustained, should lead to stronger growth in China’s economy relative to 2022, which could offer some upside risk to commodity prices”, it added.

  • BoG hopeful of economic rebound

    By Elorm Desewu

    The Bank of Ghana, (BoG), is very optimistic that the economy would soon recover as the government has spelt out measures that will put the fiscal on the path of consolidation.

    According to the Governor of Bank of Ghana, Dr Ernest Addison, the government’s revenue enhanced measures such as the VAT increase of 2.5 percent, the complete removal of benchmark values on imports, and the review of the E-Levy should help improve the revenue outlook.

    The lower capping on transfers to earmarked funds from 25 to 17.5 percent, and the reduction of budgetary allocation to goods and services, as well as rationalisation of executive compensation would help contain expenditures in 2023.

    Dr Addison explained that the concerns being expressed in the public domain relating to high government expenditures have been addressed in the SLA and reflected in the 2023 Budget adding that “we must have faith and trust in the economy”.

    The Staff Level Agreement (SLA) is also contingent on the Domestic Debt Exchange Programme and external debt restructuring, which when concluded and the necessary financial commitment obtained, will allow the presentation of the SLA to the IMF Board.

    This, the governor believes will help restore fiscal and debt sustainability and bring down inflation as well as help stabilise the currency.

    He said the central bank would remain vigilant and moderate liquidity in the system to underpin macroeconomic adjustments taking place to drive inflation on a downward path.

    The domestic growth conditions softened in 2022 and is projected to moderate further and remain below potential over the near-term, based on the elevated inflation levels. The updated CIEA showed continued dip in economic activity, despite the slight improvement in consumer and business sentiments from the latest surveys.

    Economic activity for the first three quarters of 2022 was within projections, albeit at a moderated pace than a year earlier. The latest data from the Ghana Statistical Service showed that real GDP expanded at an annual rate of 3.6 percent during the first three quarters of 2022 relative to 4.8 percent during the corresponding period in 2021. Non-oil GDP growth also moderated to 4.3 percent from 4.7 percent over the same comparative period. The observed growth outturn was driven by the services and agriculture sectors.

  • Ghana’s Debt Exchange to affect domestic, regional banks.. as Fitch warns of downgrades of more banks

    International rating agency, Fitch, is warning of more rating downgrades of African banks in 2023 as Ghana’s debt restructuring is expected to affect both domestic and regional banks.

     

    According to its 2023 Outlook report, sovereign debt distress is the major risk to African banks’ financial profile.

     

    “We are most concerned about potential sovereign defaults with many African governments facing very high and increasing debt servicing burdens exacerbated by rising interest rates, US dollar strength and unfavourable external funding conditions. The Ghana debt restructuring will affect domestic as well as regional banks”.

     

    It explained that African banks’ credit drivers will be undermined by both global and domestic shocks in 2023.

     

    “Operating environments will be affected by a combination of high inflation, rising rates, currency depreciation and hard currency shortages, but moderate Gross Domestic Product growth, with no major African economy entering a recession, combined with banks’ relatively good fundamentals and buffers, will prevent a significantly more negative scenario”, it noted.

     

    Fitch further said banks’ sovereign debt risks have increased, with some African governments struggling with debt-servicing burdens and unfavourable external funding conditions.

     

    It stressed that the banks could be downgraded due to further sovereign downgrades but the biggest risk comes from potential sovereign defaults that could affect banks in these countries as well as regional banking groups.

     

    “Asset quality risks will return to be more prominent in 2023. Nevertheless, we assume only a moderate increase in impaired loan ratios in most countries. A sharp fall in commodity prices as a result of the global slowdown or economic developments in China could cause a faster increase in loan quality weakening”

     

    Fitch continued that banks will however remain profitable, benefitting from rising interest rates and still-satisfactory loan growth (above GDP growth) which will mitigate a moderate rise in credit costs.

     

    It concluded that capitalisation, funding and liquidity remain sufficient, with the latter in particular, underpinning banks’ standalone creditworthiness, stating, “external funding will be scarce and expensive”.

  • Mining reforms: Gov’t committed as local banks to handle 60% of sector’s financial services

    Mining reforms: Gov’t committed as local banks to handle 60% of sector’s financial services

    Adnan Adams Mohammed

     

    As government shows commitment towards reforms in the mining sector and deepening local content, all mining companies are expected to ensure that at least 60% of financial services including revenue from the sale of minerals go to the local Banks.

     

    This is captured in the fifth edition of the new procurement list which now has 50 items for the provision of goods and services of which the Minerals Commission has commenced the implementation.

     

    A statement, signed and issued last week by the MinCom said the increase in the items on the list comes at a time when receipts from mineral revenues and investments hover around US$ 10 billion. The local banks such as CBG, National Investment Bank, Ghana Commercial Bank and Agricultural Development Bank are likely to benefit greatly. The same applies to insurance services which also require a minimum of 60% of all insurance and reinsurance placements be made with insurance companies exclusively owned by Ghanaians.

     

    “For instance, there are four huge new projects with an investment of about US$ 1.7 billion”, Chief Executive Officer of the Minerals Commission, Martin Kwaku Ayisi revealed. “The new projects are the US$ 850 million Ahafo North gold mine project by Newmont Ghana Gold Limited, US$ 500 million gold project currently under construction by Cardinal Namdini Mining limited in the Talensi District of the Upper East Region, the US$ 200 million gold mine to be constructed in the Upper West Region and the US$ 125 million lithium project at Ewoyaa in the Central Region”.

     

    Additionally, Mr. Ayisi stated that some mines are undertaking expansion and redevelopment. The undergoing expansion includes the Ahafo South mine of Newmont which now covers the Subika underground. Golden Star Resources is spending about a billion dollars to expand the Wassa underground mine.

     

    The mines being redeveloped are the Anglogold Ashanti Obuasi mine where a billion dollars has been expended and the Bibiani mine of Mensin Gold Ghana Limited which started production in the last quarter of 2022. The redevelopment of the Bibiani mine is over US$200 million dollars

     

    “It is the expectation of the Minerals Commission that these investments will support the growth of the economy and boost local participation under the new procurement list.” MrAyisi added.

     

    The new procurement list replaces the fourth edition of the procurement list which was published by the Commission in early 2022.

     

    The Minerals and Mining (Local Content and Local Participation) Regulations, 2020 (L.I. 2431) came into force on 22 December 2020.

     

    The purpose of the regulations among others is to promote job creation using local expertise, goods and services in the mining industry and their retention in the country. The law is also to achieve the minimum in-country spending for goods and services and create mining and mineral-related industries that will sustain economic development.

     

    Pursuant to Regulation 7 of L.I. 2431, the Commission is required to publish a local procurement list that stipulates the goods and services with Ghanaian content which are to be procured in the country. Regulation 7(3) of L.I. 2431 further states that the Commission shall review the procurement list annually.

     

    Meanwhile, the Deputy Minister for Lands and Natural Resources, George MirekuDuker, says the government is determined to build a mining sector which is resilient and fortified enough to withstand the next global crisis.

     

    Delivering the keynote address at the opening day of the West African Institute of Mining Metallurgy and Petroleum (WAIMM) Annual Industry Conference, last week, Hon Duker said the mining industry was not spared from the dire impact of the twin crisis of COVID-19 and Russia-Ukraine war.

     

    He disclosed that the industry was badly hit but the government as part of its economic reform is introducing new policies that will lead to the creation of an economy that will be able to repel the shocks of the next global crisis.

     

    According to the Deputy Minister, the mining industry has taken the lead in the reformation drive by promoting responsible and sustainable mining practices.

  • Banks to lose up to 60% of their revenue due to Debt Exchange – former Stanchart Director

    A former Executive Director of Standard Chartered Bank has warned the economic contraction implications of the debt exchange programme will be dire.

     

    According to the finance analyst, if the Debt Exchange is carried out in its current form, would result in many banks losing as much as 60% of their revenue, since they depend on government treasury bonds.

     

    “To be blunt, most banks will be making losses when you combine this loss of income with the high default rate on loans to SMEs and corporates”, Mr Alexander Kofi-Mensah Mould emphasized

     

    In a Facebook post, he said the main implication of the proposed DebtExchange would be a general slowdown of the economy and “we will either not grow as anticipated, and, perhaps, even not exceed 2% GDP growth this year.”

     

    He said government will have no other option than to cut down its discretionary expenditure and other non-productive policy programmes.

     

    “We also expect a reduction in the construction of new roads as well as a slowdown in road maintenance, and a lot of non-essential government workers’ salaries being delayed or not paid at all etc ie more expenditure accruals,” he stated.

     

    Read full statement

     

    Gov’t seems not to have thought through this _debt exchange programme_ thoroughly; the economic contraction implications are dire!

     

    There will be a general slowdown of the economy and we will either not grow as anticipated, or, perhaps, even not exceed 2% GDP growth this year.

     

    This will be due to less demand, which means that there will be less production, fewer imports, and fewer services being given to the populace.

     

    Now, what does this mean for government revenue?!?

     

    Since the demand of goods and services will go down, it means people will be paying less taxes. Additionally, due to reduced demand – a result of less discretionary expenses – there be fewer imports and as such there will be less duty and other excise taxes collected at the ports.

     

    So, government revenue will plummet and they may fall short of making the projected revenue in the approved budget.

     

    The DebtExchange, if carried out in its current form, will result in many banks not getting any income from Government Treasury Bonds they hold for almost 1.5 years! In some cases, this forms up to 60% of their revenue and is a huge contributor to their profits! To be blunt most banks will be making losses when you combine this loss of income to the high default rate on loans to SMEs and corporates.

     

    With lower than expected revenue, Government will have no other option than to cut down its expenditure.

     

    The first to go will be *discretionary expenditure* and other non-productive policy programmes.

    .

    We also expect a reduction in the construction of new roads as well as a slowdown in road maintenance, and a lot of non-essential govt workers’ salaries being delayed or not paid at all, i.e more expenditure accruals.

     

    Furthermore, with the statutory payments, like pension contributions, the situation will be worse than it currently is, i.e. gov’t backlog of unpaid pension contributions of gov’t workers.

     

    Gov’t needs to re-visit this _debt exchange program_, and create policies that will bring back confidence in the economy, as well as attract investment to spur on the economy; resulting in more spending and increased savings.

  • Another banking sector cleanup in the offing – Experts alarm

    Another banking sector cleanup in the offing – Experts alarm

    Adnan Adams Mohammed

    Financial industry experts have alarmed of imminent cleanup exercise as the country is witnessed a debt restructuring program.

    This comes as the local economy is yet to recover from the first ever financial sector cleanup exercise initiated in 2019.

    The experts explained that, Debt Exchange Program the debt-ridden country is to undertake will usher Ghanaians into unprecedented hardship likened to the era of 1979-83 hardship in Ghana. A former Executive Director at Standard Chartered has indicated that, the debt restructuring will result in sequence of events that will end with many borrowers defaulting their loans or funds borrowed. This will affect many financial institutions.

    “Many will be borrowing funds which they won’t be paying back (so let us say they will be given grants, but lenders don’t know this yet)”, Alex Mould intuited in an interview last week.

    “He itemised the expected economic situations due to the debt restructuring program as that: in this year, there will be less spending power, little or no savings; companies will borrow less and less production due to less demand (only essentials like food staples); Many businesses will fold and eventually lay off workers; Most contracts will not be honored; and Many rentals will be unoccupied. This will lead to low Gross Domestic Product (GDP) growth.”  

    To this, the Dean of University of Cape Coast School of Business, Prof. John Gatsi warned that the country will experience another round of banking sector cleanup if care is not taken.

    According to the economist, the “Debt exchange program is default announcement and a call for support to resolve debt servicing burden by government.” but was quick to add that “This does not in anyway take away the solemn and legal commitment to pay principal at maturity and also pay periodic coupon to the bond holders.”

    Implicitly, this legal obligation or covenant is such that the debtor (government of Ghana) is still a debtor whether there is cash flow / revenue challenges or not.

    In the financial terms, the fact that government has declared default does not mean government has triggered a different status for itself. Government is still a debtor.

    Prof Gatsi emphasizing on this aspect expunged that, “The Ministry of Finance is not a court to determine that individual bond holders will not get favorable judgment in any legal action especially when the process was described as voluntary.”

    “In a democracy, individuals bond holders are at liberty to go to court. The court has the choice to determine whether or not people should be scared about government and her debt instruments going forward. Government indeed needs the support of bond holders in the debt exchange program but the critical question is whether government should determine what it wants and not a negotiated deal.”

    Consequently, the Economics Professor cum Lawyer juxtaposed that, the debt restructuring will lead to liquidity challenge in the financial sector of the economy.

    “The challenge now is that government debt restructuring in a high interest rate regime, may trigger a certain percentage of default by private sector debtors such as households, micro, small and medium size enterprises . So we await a boom in the non- performing loan portfolio of banks soon with reclassification of assets with huge assets expected for impairment. This will create liquidity and capital challenges. We are in for another round of bank sector cleanup if care is not taken”, he added.

    “The debt exchange must be negotiated fairly for bond holders to accept the difficulties government is facing to share part of the burden with government. If this is not done then the entire process becomes hostile . The exercise should be fair to the financial system in general to foster a negotiated debt exchange program and this will keep bond holders still trusting government. Everything must be done to maintain investor confidence to achieve trustworthy and credit worthiness of government instruments along the long term path.”

    Meanwhile, the Finance Minister, Ken Ofori-Atta has noted in the ‘Invitation to Exchange’ to individual bondholders that, the principals of eligible individual bondholders will not be touched in the debt exchange programme but the interests will get a haircut.

    This invitation is to exchange certain domestic notes and bonds of the Republic of Ghana, E.S.L.A. Plc, and Daakye Trust Plc (collectively, the “Eligible Bonds”) for new bonds of the Republic of Ghana.

    The exchange, the minister noted, will rather involve an exchange for new government of Ghana bonds with a coupon that steps up to rates ranging from 9.15% to 10.65% (depending on the specific series of new bonds) as soon as 2025 and longer average maturity.

    The minister said the domestic debt exchange is part of a more comprehensive programme to restore debt and financial sustainability.

    In the Amended and Restated Exchange Memorandum to individual bondholders, he noted: “The successful completion of this domestic debt exchange is a critical component of both the debt reduction programme and the International Monetary Fund programme discussions; it will contribute to unlocking the support of the international community and will allow Ghana to reach debt targets agreed with the IMF”.

    “We need the full participation of all bondholders in this transaction. Anything less will not make us eligible for assistance. There can be no exception”, he added.

    Apart from that, he said contingency plans have been prepared with applicable regulators to assist certain sectors of the economy (including the financial sector) after its participation in the exchange, to minimise negative spill-overs and safeguard the domestic economy including the establishment of a financial stability fund to provide a backstop for liquidity.

    The minister indicated that, the alternative to the debt exchange would be a far worse economic crisis, with protracted closure from international markets including imported goods and services and further domestic economic instability both for the real economy and the financial sector.

    “It would also mean depleted fiscal resources to support the neediest.”

    “We are acutely aware of the upfront cost of this transaction, and other aspects of our adjustment programme, to participating holders. To that end we are carving out from this exchange treasury bills (up to one-year maturity) typically held by retail investors”, he explained.

    “Further, there is also a positive trade-off for debtholders as a group: this transaction, though resulting in reduced coupon payments from 2023, will make a positive contribution to a safer and brighter future for all Ghanaians”, he argued.

  • Revise the current modalities for the Debt Exchange Program – Economist advise gov’t

    Revise the current modalities for the Debt Exchange Program – Economist advise gov’t

    Adnan Adams Mohammed

    An economist has called on the manager of the economy to revise the modalities of the entire exercise of Domestic Debt Exchange Program (DDEP).

    The Honorary Fellow at Solidare Ghana believes that, since the bank and non-bank sector stability plays a major role in a non-market economy like Ghana, the government is advised to stress-test all these sectors before any debt exchange program.

    The economist explained that, the stress test will provide information on how to design the needed support for the sector. Indicating further that, the financial stability support fund provided in the first and the revised DDEP is not enough, some of the institutions may need recapitalization, liquidity support, and in large regulatory measures.

    “The government’s posture in the Domestic Debt Exchange Program (DDEP) exercise seems not to be serious”, Professor Lord Mensah, a lecturer at the University of Ghana Business School indicated in his expectations for 2023. “The entire exercise can pose a unique challenge, dragging the IMF Board approval and external debt restructuring into the last quarter of 2023 to the first quarter of 2024.”

    Prof Mensah stressed that, “There seems to be no appreciation of the consequence of the entire DDEP on the domestic financial sector.”

    Consequently, he provided education on the effect between the DDEP and the financial sector. “The government should note that Banks and the Non-Bank (including pensions, rural banks, and insurance companies) sectors hold more than 84% of the domestic debt, and as a result, careless execution of the DDEP may spread the country’s debt distress to other parts of the economy, with likely effects on the financial stability and economic activity.

    “The structure of the DDEP will play a major role in achieving the necessary fiscal space whiles minimizing the risk to the domestic financial system and the broader economy. The government must sacrifice and cast its net wide to ensure borrower-creditor participation in the DDEP by lowering the relief it is seeking from the creditors.”

    Meanwhile, moving from the above analysis on the DDEP, the economist expects the “macroeconomic indicators like the exchange rate (Cedis to the Dollar) and inflation to see some stability compared to last year, due to the fall in global oil prices and other policies.

    “The fall in global oil prices, the suspension of external debt payments by the government, and the possible IMF extended credit facility will have the potential to control the exchange rate.

    “The control of the exchange rate will build up into a reduction in inflation since the greater part of the Ghanaian inflation is imported.”

  • Modalities for the Debt Exchange is like ‘studying Thermodynamics’ – fin analyst jest

    Modalities for the Debt Exchange is like ‘studying Thermodynamics’ – fin analyst jest

    Adnan Adams Mohammed

    A finance analyst has said, from the way the finance minister is going about with the Domestic Debt Exchange program, is making the whole structure and procedure confusing.

    The analyst explains that, Ken Ofori-Atta has done two turnarounds in less than a week on the structure and procedure for the debt exchange.   

    After a crunch meeting between government and organised labour, forthnight ago, after the later had threatened a nationwide industrial action if pension funds are not exempted from the exchange program, the finance minister announced that pensioners’ money are individuals’ funds that are managed by Trustees and as such should also be exempt same as an Individual funds invested in government bonds which were already exempted.

    A day later after exempting the pension funds, the Mr Ofori-Atta announced new modalities for the exchange program but now including individual funds invested in government bonds.

    “So now, on what basis are pensioners’ funds invested in government bonds exempt?”, Alex Mould quizzed.

    “I am confused even more than I was yesterday. It is like studying Thermodynamics. The more you learn the less you know!!”

    According to a senior fellow at IMANI Africa, Bright Simmons, the debt program represents, undoubtedly, the largest single transfer of wealth from the Ghanaian private sector to the government in a single fiscal measure, in living memory.

    It is equivalent to doubling taxes on the entire corporate sector and giving the bill to only banks, insurance companies, pension funds and a few other investor categories to pay.

    Due to the Ghana-IMF programme, the government has announced measures to deal with the economic crisis including the debt exchange programme, freezing of public sector employment, and a haircut on all government bonds among others.