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Tag: Akufo-Addo government

  • Standard Bank predicts economic growth of 6.2% in 2022 amidst low Eurobond market access

    Standard Bank predicts economic growth of 6.2% in 2022 amidst low Eurobond market access

    Adnan Adams Mohammed

    The parent company of Stanbic Bank, Standard Bank, has predicted an economic growth of about  6.2% in 2022 and subsequently grow by 6.8% in 2023 amidst tough times for the Ghanaian economy.

    The prediction, in the latest report of the Bank, is in line with the forecast by International Monetary Fund which also pegs the growth rate of the country at 6.2% in 2022. It said the government has made significant progress in vaccinations and the further easing of COVID-19 restrictions will stimulate demand and supply within the economy.

    But, it pointed out that the country’s ability to tap the Eurobond market may further diminish, whilst the foreign exchange reserves could remain under pressure unless the government acquires alternative sources of external financing. 

    “As global risk may worsen further in the first-half of 2022, and Ghana’s ability to tap the Eurobond market may further wane. Foreign exchange reserves could remain under pressure in 2022 — unless the government acquires alternative sources of external bilateral and multilateral funding.”

    Reporting on the performance of past year’s performance, the Bank estimated that, on a quarter-on-quarter basis, the mining and quarrying sub-sector grew by 16.9% in 2021, from an average contraction of 10.7% in the 6 months to June 2021, implying that growth momentum may be recovering.

    “On a quarter-on-quarter basis, the mining and quarrying sub-sector grew by 16.9%, from an average contraction of 10.7% in the 6-m to Jun 21, implying that growth momentum may be recovering. Gold production from underground ore sources should commence from January 22, 2022 at the Obuasi mine. New contracts to conduct mining activities at the Bibiani mine have already been awarded, which should boost investment in the sector over the next few years.”

    “However, ongoing global supply chain challenges could restrain growth in the cocoa and industrial sub-sectors in 2022″, it added.

     Balance of payments – imports likely to be higher

    The report said the Current Account deficit is likely to widen to 5.0% of Gross Domestic Product (GDP) in 2022, from an expected 3.9% for 2021.

    “Whereas we expect a recovery in gold production and exports over the coming year, we simultaneously also see a notable rise in the imports of goods. As the economy continues to recover from the pandemic, non-oil imports may increase further. Also, given the government’s expansionary fiscal policy stance, capital goods imports will likely remain elevated over the next two year. Higher international oil prices too could continue to widen the trade balance.”

    Furthermore, “cocoa production and exports could still be dragged lower due to fertiliser shortages. As of Q2:21, cocoa and gold exports combined accounted for around 55.3% of total merchandise exports.”

  • Understanding mismanagement of an economy in context: No excuses for Ghana’s “broke” economy

    Understanding mismanagement of an economy in context: No excuses for Ghana’s “broke” economy

    By Professor John Gatsi

    Economic management outcomes depend on many factors including leadership.

    It is unfortunate to think that putting together highly educated citizens or members of the political party in government means expected outcomes are certain.

    If that is the only factor in economic management, then throughout history the American, Russian, Japanese, Canadian, German, French economies for example would not have recorded recession ,depression, debt distress, financial distress and sectoral crises.

    Touting is not equivalent to expected delivery. When the economy was showing deep signs of vulnerability in the areas of huge debt and exchange rate volatility , the response was aggravated touting by mentioning names of people in government.

    Another sign before Covid -19 was that instead of deploying policies to support the efforts of the Bank of Ghana to manage the currency, the government usurped the constitutional mandate of the Bank of Ghana by establishing exchange rate management committee which could not deliver.

    It is time for government to publicly accept the fact that in currency management, there are internal and external factors which should be addressed with different strategies.

    Ghanaians are expressing disappointments in economic management outcomes in recent times. The government has joined the queue by saying the economy is broke without providing what makes the economy broke. The discussion has assumed some comparisons that should be corrected.

    There are some who think that if you are dealing with a global pandemic, issues relating to mismanagement do not arise. Some described the energy crises and the problems under the NDC as mismanagement because it was not caused by Covid-19 and the deep micro and macro level distress of the economy under the NPP is not mismanagement and that it is just because of Covid-19. This perspective is incorrect. It is possible that funds provided to tackle the pandemic have been managed in a manner that is not reflective of what should have been the case. Borrowing excessively in the name of Covid -19 without the willingness to conduct Covid-19 expenditure audit to ensure transparency, disclosures and accountability is a colossal fiscal mistake that will continue to strengthen the believe by people that mismanagement contributed to the crisis Ghanaians are experiencing now. The principles of accountability and confidence are not waived in the management of the economy during a pandemic. We all know that the pandemic has increased global fiscal deficit, public debt , cost structure of businesses among others including Ghana but does not in any way means zero corruption , responsible expenditure and accounting for funds disbursed are no longer requirements in public financial management.
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    Economic management during the pandemic has generally been expected to be difficult but it also came with faster access to funds to manage the economy. This easy access to available funds from national and international sources such as the IMF and World Bank was not available to the economic mangers under NDC when crude oil prices went down to the floor including gold and cocoa prices. Under Covid-19 economic management , on average gold, cocoa and crude oil prices are performing well and apart from 2020 , revenue has been encouraging. In the face of these facts, inability to convince Ghanaians that the results we are seeing is the best , means mismanagement is part of the financial distress of the country.
    Therefore , the argument that the financial distress is justified because it is the outcome of a global pandemic is not acceptable.

    It is sad that we seem to be attacking the credibility of individuals who were part of the NDC government as though they are not permitted to talk about the hardships and erosion of confidence in pandemic economic management and leadership of the country. It is most annoying that people who are holding juicy positions in government, sometimes in institutions that benefited from prudent and value for money application of public debts by the past government, are the ones doing this. Government should be encouraged that in times of widespread hardships, freedom of speech and expression provide reliable data as to how the people rate the government and perhaps areas around which new policies should be developed to address the needs of the people. Insulting and using vulgar words against people is an abuse of the privilege to serve Ghana in government.

    The economic management outcomes today are not merely pandemic outcomes but also a reflection of some level of mismanagement.

    Now, key government officials believe the economy is broke. Citizens are asking questions as to why “the economy is broke”?. Some genuinely do not believe Ghana is broke because a broke person who is not minded to stop or drastically cut down on offensive expenditure is mismanaging his life. The unwillingness to demonstrate real commitment to prioritizing necessary expenditure mirrors mismanagement. When these issues are addressed, then citizens will agree with government and reduce the degree of mismanagement tag.

    Insulting and threatening citizens who express their frustration about the hardships and erosion of incomes and economic opportunities is mismanagement of the privilege to serve.

  • Visa free traveling: Ghana signs new agreements with Malta, Qatar and 6 other countries

    Visa free traveling: Ghana signs new agreements with Malta, Qatar and 6 other countries

    Ghanaians who hold Diplomatic, Service and Official passports can now travel to about eight (8) countries without visa.

    The countries are Qatar, Jamaica, Suriname, Saint Kitts and Nevis, Saint Vincent and the Grenadines, Guyana, Venezuela and Malta, the Ghana Presidency noted in a tweet, on Thursday, March 3, 2022.

    https://twitter.com/GhanaPresidency?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1499404200815566849%7Ctwgr%5E%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fd-29088013112963513522.ampproject.net%2F2202230359001%2Fframe.html

    This means officials from these countries carrying Diplomatic, Service and Offical passports will be exempted from applying for visas when entering Ghana and vice versa.

    Also, according to the Presidency, some steps have been taken to improve on the service delivery pertaining to passport administration in Ghana and its missions abroad.

    The initiatives include the “purchase of generator sets for all 13 Passport Application Centers (PAC) in Ghana” and a “roll-out of E-Visa application hardware at our Missions abroad and at the Ghana Immigration Service.”

    SOURCE MyJoyOnline

  • SONA postponed as Parliament wait for a new date from Jubilee House

    SONA postponed as Parliament wait for a new date from Jubilee House

    The State of the Nation Address (SONA) expected to be delivered by the President today, March 3, 2022, as initially scheduled has been postponed.

    The postponement of the address was announced in Parliament by Deputy Majority Leader Alexander Afenyo-Markin, who explained that a new date will be set after engagements with the Presidency.

    Article 67 of the Constitution of Ghana enjoins the President to deliver a message on the state of the nation to Parliament.

    It states, “The President shall, at the beginning of each session of Parliament and before a dissolution of Parliament, deliver to Parliament a message on the state of the nation.”

    The President, Nana Akufo-Addo, is expected to account the achievements, prospects and challenges faced by his government for the past and the coming financial year.

  • Adwoa Sarfo E-Levy voting private jet cost almost GHC1.0mn-Okudzeto

    Adwoa Sarfo E-Levy voting private jet cost almost GHC1.0mn-Okudzeto

    Read full article below:

    Hon Sam Okudzeto Ablakwa writes

    It is surprising that the focus of many including Civil Society Organisations in the series of Adwoa Asafo revelations has been on the alleged GHS120,000.00 transfer into her bank account from the Chief of Staff.

    The cost of the private jet used to ferry her from the USA to Ghana which is much higher than the GHS120,000.00 cannot be ignored.

    We now know that a Gulfstream G-550 registered HB-JOE and operated by Premium Jet AG based in Belgium was the executive aircraft chartered to bring in Hon. Adwoa Safo for her vote on the obnoxious E-Levy.

    It cost US$4,800 an hour to rent the HB-JOE.

    With an 11-hour flight distance, payment of reposition fees (as it flew from Belgium to pick her up in the States), payment of one-way fees (as the business jet flies back home empty), crew per diem fees, landing and wait-time fees; it cost a staggering US$140,000.00. At today’s exchange rate, that is GHS948,500.00

    It is most intriguing that an economy which is said to be broke can lavish a fantastic GHS948,500.00 plus GHS120,000.00 (a total of GHS1,068,500.00) just for one E-Levy vote. Imagine what our country can do with 1million Cedis in the midst of our economic challenges, NABCO demonstrations and labour agitations?

    The dubious claim that Adwoa Sarfo’s flight cost was paid for by her friends is most insulting. Who are these friends? What is their motivation? Why do these friends want the unpopular E-Levy passed so badly? What do these friends expect in return? What are the tax records of these friends? Why are these friends being shielded?

    How ironic, that the political tradition that in time past roundly rejected the reported kindness of President Rawlings’ friends will today be boldly canvassing a bizarre kind of friendship support.

    The Office of Special Prosecutor must look into the entire GHS1,068,500.00 expenditure for Adwoa Safo’s E-Vote and not only the GHS120,000.00 deposited in her account.

    The current composition of Ghana’s 8th Parliament should lead us to a patriotic, mature and frugal path of consensus building in the national interest; and not the present embarrassing spectre of opting for an extremely partisan, destructive, wasteful, small-minded and reckless road to perdition.

    May God save us. 🙏🏽🇬🇭🙏🏽

  • Suppression of Opposition Voices: NDC petitions Commonwealth Secretariat

    Suppression of Opposition Voices: NDC petitions Commonwealth Secretariat

    The National Democratic Congress (NDC) has petitioned the Commonwealth Secretariat to investigate and subsequently sanction the current administration over what the party calls bad governance and abuse of human rights.

    At a press briefing in Accra today, Monday, the General Secretary of the NDC, Johnson Asiedu Nketia, said the petition is to draw the attention of the international body to instances of abuse of the judiciary, political persecutions, and abuse of human rights.

    Mr Nketia noted these acts are against the norms and practices of members of the Commonwealth of Nations.

    “Since assuming power in 2016 the message of physical violence against political opponents that President Nana Addo Dankwa preached and championed before 2016 General Election has turned into structural institutional and systematic forms of violence in the form of human rights violations, harassment and political persecution against members and supporters the National Democratic Congress,” the NDC General Secretary, told the media in a press conference.

    He continued: “Significantly, buffer institutions such as the judiciary whose core mandate is to mediate between the interest of opposing parties, and ensure the promotion of the rule of law and the promotion of individual liberties have become systematic enfeeble with the attendance of loss of public confidence in these institutions,”

    Apart from political opponents, several journalists have been arrested and detained under the governing New Patriotic Party.

    Recently, Accra FM’s presenter, Kwabena Bobbie Ansah was arrested for the publication of false news and offensive conduct, while Power FM’s Oheneba Boamah Bennie was jailed for two weeks and fined GH¢3,000 for contempt of court.

    There have been countless calls on President Akufo-Addo to let his actions reflect his support for the promotion of human rights.