News Guide Africa

Tag: Economic growth

  • Ghana’s economy showing strong growth prospects …underpinned by favourable external and domestic trends

    BoG data signals improved macroeconomic indicators, boosting business and consumer confidence.

    By Toma Imirhe

    Ghana’s ongoing macro-economic turnaround is finally being rewarded by significant improvements in its key economic performance indicators and this in turn is engendering strongly growing confidence in the fortunes of businesses and consumers alike, going forward.

    Data released by the Bank of Ghana last week, following the latest meetings of its Monetary Policy Committee, points to lowering inflation, fiscal discipline, the tight monetary policy stance and favourable external sector developments as key ingredients behind the country’s improving economic performance.

    Headline inflation has declined consecutively in the first four months of the year by 2.6
    percentage points to 21.2% in April 2025, driven by the lowering of both food and non-food inflation.
    “A confluence of factors, including tight monetary policy stance, stepped-up liquidity sterilization efforts, downward revisions in ex-pump petroleum prices, and exchange rate stability havesupported the gradual decline in inflation” BoG Governor, DrJohnson Asiama explained last week when delivering the decision of the Monetary Policy Committee to retain its benchmark Monetary Policy Rate at 28%. “The Bank’s core inflation measure, which excludes energy and utility prices, as well as inflation expectations of consumers, businesses, and the banking sector point to easing inflationary pressures.”
    Similarly, the recently installed President John DramaniMahama administration has reigned in the fiscal slippages that its predecessor government often fell prey to.

    “Fiscal policy implementation so far has been broadly aligned with the 2025 Budget. In the first
    quarter of 2025, provisional data on budget execution indicated that although revenues fell below target, some expenditure rationalisation took place to accommodate the revenue shortfall” affirmed Dr Asiama. “The primary fiscal balance (on commitment basis) has also improved in the first quarter. Continued maintenance of a strict fiscal consolidation for the 2025 Fiscal Year will further strengthen the ongoing recovery process and firm up macroeconomic stability.”
    Key to the ongoing turnaround has been the external sectorwhich has continued to improve, with a record provisional current account surplus of US$2.1 billion in the first quarter of 2025, driven mainly by higher prices and increased production volumes of gold and cocoa, and strong remittance inflows. The current account surplus, together with net outflows in the capital and financial account, resulted in an overall Balance of Payments surplus of US$1.1 billion. The strong external performance resulted in significant reserve accumulation. Gross International Reserves (GIR) amounted to US$10.7 billion in April 2025, equivalent to 4.7 months of import of goods and services.

    “ Broadly, the external sector outlook remains favourable, largely anchored on expectations of increased gold and cocoa export receipts, as well as inflows from remittances” enthused Dr Asiama last week. “The cedi has rebounded strongly against the major trading currencies driven by a combination of factors, including tight monetary policy stance, ongoing fiscal consolidation, record reserve accumulation, strict enforcement of foreign exchange market rules, and improved marketsentiment.”

    Indeed in the year to May 21, 2025, the cedi had appreciated against all the major currencies
    – 24.1 percent against the US dollar, 16.2 percent against the British pound, and 14.1 percent
    against the euro.
    “The latest forecast points to continued easing of inflationary pressures on the back of tight
    monetary policy stance, exchange rate stability, and fiscal consolidation” the BoG Governor enthused. “Inflation is expected to ease faster towards the medium-term target in the first quarter of 2026 as opposed to the second quarter as earlier envisaged, barring unanticipated shocks.”

    This looks set to deliver palpable rewards. The BoG’s high frequency real sector indicators point to a sustained pickup in economic activity. The updated Composite Index of Economic Activity increased by 2.3 % year-on-year in March 2025, compared with 1.0% over the same period last
    year, mainly driven by exports, credit to the private sector, and construction activities. In addition, the Ghana Purchasing Managers’ Index rose above the 50-benchmark as output and new orders increased, signaling improved growth prospects. Based on easing inflationary pressures and optimism about macroeconomic conditions, the latest confidence surveys conducted by the BoG showed significant improvement in consumer and business expectations going forwards, the highest in the last seven years.

  • Ghana’s current account records growth of US$3.1bn to end 2024

    Ghana’s current account surplus hits US$3.8bn in 2024 driven by strong gold exports

     

     

    Adnan Adams Mohammed

     

     

    Ghana’s current account recorded a provisional surplus of US$3.8 billion in 2024, compared with a surplus of US$1.4 billion in 2023, Bank of Ghana economic data has indicated.

     

    This performance was driven mainly by higher gold and crude oil exports, as well as strong remittance inflows.

     

    The central bank explained that, this, together with a lower net outflow of US$588 million in the capital and financial account, relative to a net outflow of US$733 million in 2023,  contributed to an improved balance of payments position for the year.

     

    “The lower outflow in the capital and financial account reflects Ghana’s successful debt restructuring and the IMF ECF programme”, Governor Dr Ernest Addison told journalists last week at the latest Monetary Policy Committee press briefing. “These favourable developments resulted in an improved balance of payments surplus of US$3.1 billion, compared to a surplus of US$518 million recorded in 2023.”

     

    Also, the central bank noted that external sector conditions remain positive, with sustained and stronger-than-programmed rebuilding of reserve buffers contributing to the stability of the domestic currency. The performance of the external sector was mainly driven by strong growth in gold exports, which also largely impacted positively on growth.

     

    In the outlook, the external sector is expected to remain strong as commodity prices remain favourable amid improvements in production. Overall, while the external sector conditions are expected to provide an anchor to exchange rate stability, key risks in the outlook including challenges in the energy sector will have to be closely monitored.

     

     

     

  • Parliamentary deadlock delays $300mn World Bank funding – Fin Minister

     

    Finance Minister Dr. Mohammed Amin Adam

     

    The government has acknowledged that an ongoing parliamentary deadlock is preventing the disbursement of US$300 million in World Bank funding, vital for stabilising Ghana’s economy and addressing fiscal deficits.

     

    The funds, part of a larger financial support package from the World Bank, remain inaccessible due to the unresolved impasse in Parliament, which has been in indefinite recess as the two main political parties dispute control of the majority of seats.

     

    “We should have passed some legislation that would have qualified us for US$300 million from the World Bank. However, the World Bank has not disbursed the money because those bills have not been passed, as Parliament has not been functioning as it should,” Finance Minister Dr. Mohammed Amin Adam said during his monthly economic update, last week.

     

    The Finance Minister expressed optimism that the impasse would soon be resolved, allowing Ghana to access the crucial funds without significant delays. He also reassured the public that the government remains committed to delivering its policy priorities, despite the political gridlock.

     

     

    “We are focused on delivering our policy priorities for sustained economic growth. The budget has been presented to Parliament. We are waiting for Parliament’s own time. If this current Parliament doesn’t pass it, the next Parliament will approve it,” the Minister said.

     

    He emphasised that: “Certainly, if Parliament is not functioning, it affects the government.”

     

     

    Concerns have arisen that the parliamentary deadlock could lead to a potential government shutdown next year, particularly impacting the payment of salaries for public sector workers.

     

    However, the Finance Minister remains hopeful that a swift resolution will allow the government to present the mini-budget and avoid such setbacks.

     

    “To say that the economy has not been affected would be an understatement,” Dr. Adam admitted, acknowledging the far-reaching consequences of the parliamentary stalemate.

     

    Parliament is expected to reconvene on Monday, 16 December 2024, which may pave the way for the resolution of the deadlock and the release of the crucial financial support for the country.

     

     

     

     

     

  • Cedi value to bolster amidst expected IMF $360mn to hit BoG account within days

    Ghanaian cedi

     

     

    Adnan Adams Mohammed

     

    The Ghanaian local currency is expected to gain in value as Ghana awaits the International Monetary Fund Executive Board’s approval of US$360 million as the fourth tranche of the US$3.0 billion Extended Credit Facility.

     

    The subsequent disbursement of the $360 million is expected to hit Bank of Ghana in early this month.

     

    As it has been the normal cycle of much pressure exerted on the local currency within the last quarter of the year as traders increase imports of goods (foods, clothes etc) for the festive seasons of Christmas and new year. This situation normally causes scarcity of major trading foreign currencies such as the US dollar, Pounds Sterling, Euro, and a Chinese Yuan. Thus, making the forex market resorting to distortions and ‘black marketing’ consequently forcing the banks to also following the prevailing black market prices. However, with the expected $360 million from IMF, the banks could have more dollars to sell to traders for their imports, thereby reducing the over-relayance on the black market.

     

    “The board is set to meet in early December and approve the disbursement of US$360 million to Ghana”, the Director of Communications at the IMF Julie Kozack at a press conference in Washington.

     

    “We are working, our staff are working toward a board meeting in early December and will provide additional details on the precise date when we have them”, she added.

     

    Meanwhile, the Fund has shown confidence in the country’s economy recounting remarkable progress made towards recovery and improvement in the macroeconomic indicators.

     

    “Economic growth in the first half of 2024 exceeded our expectations, exceeded our projections. Inflation has declined and the fiscal and external positions have shown marked improvement”, Ms Kozack said.

     

    “Looking ahead, what will be important for Ghana will be continued implementation of the policy and reform agendas, especially given the difficult situation that many countries in the region and globally face. And it remains essential to fully restore macroeconomic stability and debt sustainability”.

     

    “We will, of course, have further updates on Ghana when we release the staff report, when we publish the staff report after the board meeting”, she added.

     

    On October 4th, the IMF staff and government reached a staff level agreement on economic policies and reforms for the third review of the ECF arrangement.

     

    The disbursement by the IMF Board in December 2024 will bring the total funds received since Ghana signed up for the IMF programme to $1.92 billion.

     

    The board meeting in December is coming after Ghana passed most of the benchmarks set under the third review by the IMF programme.

     

    The IMF staff at the end of the third review assessment indicated that all the end-June 2024 quantitative targets were met, and progress on key structural reforms has continued notwithstanding delays in a few areas

     

    “The economic growth in the first half of 2024 was much higher than initially envisaged primarily fueled by mining, construction, and information and communication activity, with a broadening of the sources of growth across sectors during the second quarter as inflation continued to decline” The IMF Staff said.

     

     

  • AAC pledges sustainable agriculture practices and investments across Africa

     

    Asian African Consortium

     

    The Northern Sector Coordinator of Asean African Consortium (AAC), a subsidiary of the Jospong Group of Companies, Peter Dawuni, has reaffirmed the company’s commitment to its rice revolution agenda in Ghana.

     

    He assured potential investors that sufficient land acquisition was in place to support the project.

     

    “We have legally secured 200,000 acres of land to sustain our rice revolution project, making it an attractive opportunity for investors, and we possess all necessary documents covering this transaction,” Mr Dawuni disclosed.

     

    He stressed that any investor partnering with AAC will not face land-related challenges, assuring further that “we’re confident our partnership will drive growth, improve food security, and contribute to Ghana’s economic development.”

     

     

    Mr. Dawuni delivered these assurances during a presentation on Sustainable Practices In Food, Agriculture, & Water Management at the UN Climate Change Conference in Baku, Azerbaijan, last week.

     

    He emphasised the importance of collaborative efforts between the public and private sectors.

     

    The 200,000-land acquisition, he said, was a crucial step in AAC’s long-term strategy to reduce rice importation in Ghana, aiming to produce 720,000 metric tonnes of rice within five years.

     

    Additionally, AAC plans to expand investments across Africa, prioritising food security continent-wide, he noted.

     

    “We must collectively ensure food security for Ghana and our neighbouring countries,” mr. Dawuni urged.

     

    “Our focus isn’t solely on profitability but making a tangible impact through sustainable food security,” he affirmed.

     

    To this end, the northern coordinator of AAA recounted that his outfit conducted extensive research domestically and internationally, studying best practices from Thailand, Japan, China, and France.

     

    He highlighted their adoption of sustainable agricultural practices including Alternative Wetting and Drying (AWD), compost application and agroforestry.

     

     

    According to him, AWD was particularly effective for rice production, stressing that the company’s increased compost use significantly reduces carbon emissions in Ghana.

     

    To achieve sustainable rice production and related agricultural development, he indicated that AAC was exploring equity and debt financing options, adopting climate-resilient agricultural practices, leveraging on appropriate climate-smart technologies, and fostering collaborative private-public partnerships.

     

    He maintained that by adopting these strategies, AAC has clearly demonstrated its commitment to environmentally friendly and sustainable rice production, supporting Ghana’s food security and economic growth.

     

    Mr. Awuni announced that Jospong Group and its partners intend to venture into large-scale commercial agriculture, initially focusing on the cultivation and production of onions, soya beans, maize, rice and poultry

     

  • Implementation Gaps Hinder Business Climate in 50 Economies

    World bank group

    Economies do better at enacting regulations to improve the national business climate than they do in providing the public services needed to secure actual progress, according to the World Bank Group’s new Business Ready report.

     

    The inaugural 2024 report, which assesses the business climate in 50 economies, provides an extensive dataset – 1200 indicators per economy – to identify specific areas where there is room for improvement and motivate reforms. Coverage will increase over the next three years to reach about 180 economies in 2026, providing a full global benchmark.

     

    Nearly all 50 economies assessed this year perform better on their regulatory framework than they do on the public services they provide to ease compliance by businesses. Such implementation gaps keep businesses, workers, and society as a whole from reaping the full benefits of a healthy business climate.

     

    On a scale of 0 to 100, economies score an average of 65.5 for the quality of their regulatory framework—meaning, on average, economies are nearly two-thirds of the way to being business-ready in this category. But they score just 49.7 for their public services, indicating they are only half as ready as they ought to be. This gap exists across all income levels and all regions, although it’s smallest in high-income economies and greatest in Sub-Saharan Africa and the Middle East and Northern Africa.

     

    “With economic growth being slowed by demography, debt, and discord, progress will come only through the ingenuity of private enterprise,” said Indermit Gill, the World Bank Group’s Chief Economist and Senior Vice President for Development Economics. “That depends on conducive conditions—an investment climate that facilitates the economic miracles that entrepreneurs make when they are given half a chance, miracles that are badly needed today.  Business Ready gives governments the intelligence they need to create conditions that allow businesses to build prosperity for their shareholders, consumers and workers while treading lightly on the planet.”

     

    Business Ready, the successor of the Doing Business project, reflects a more balanced and transparent approach toward evaluating a country’s business and investment climate. This approach has been shaped by recommendations from experts from within and outside the World Bank Group, including governments, the private sector, civil-society organizations, and academic researchers.

     

    Across the world, the private sector is a powerful force for economic growth—but it needs the right environment to thrive. Business Ready assesses not only the regulatory burden that firms face in the course of entering the market, innovating, and expanding their operations—how long it takes to start a business, for example—but also the quality of regulations. Do labor regulations, for example, include requirements for workplace safety? Do start-up regulations require that the identity of entrepreneurs be verified? Beyond accounting for business regulations, Business Ready evaluates the public services needed to implement them. Do governments make it easy for businesses to pay taxes by setting up online and interconnected facilities? Do they provide public databases that support transparency and make it easy for good businesses to obtain credit?

     

    Business Ready also measures the actual conditions that businesses face in practice. These conditions vary greatly among the 50 economies assessed this year. It takes anywhere from three days to 80 days for a domestic firm to be registered—and up to 106 days for a foreign firm. Firms face an average of four electrical outages per month, although the number can be as high as 22. On average, it takes slightly more than two years for a business dispute to be resolved in court, although the duration can be as long as 5 years or as little as 105 days.

     

    Comparable data of this breadth and quality allows businesses to make key decisions on how and where to operate. It enables governments to better calibrate the exact policy settings needed for the type of private sector development that enables businesses, workers, and society to thrive.

     

    “Richer economies do tend to be more business-ready, but economies need not be rich to have a good business environment,” said Norman Loayza, Director of the World Bank’s Indicators Group, which leads the Business Ready project. “Our analysis finds that low- and middle-income economies can also achieve a strong business-enabling climate. Rwanda, Georgia, Colombia, Viet Nam, and Nepal, for example, do well in various areas such as the quality of regulations, strength of public services, and overall efficiency of the system.”

     

    Transparency is a key feature of Business Ready’s safeguards for data integrity. All information collected by the project—raw granular data, scores, as well as the calculations used to obtain the scores—is now publicly available on the project’s website. Moreover, all results presented in the reports are replicable using straightforward toolkits available on the website

     

     

     

     

  • Hidden debt hurts economies. Better disclosure laws can help ease the pain

    International Monetary Fund

     

     

    By Alissa Ashcroft, Karla Vasquez, Rhoda Weeks-Brown (International Monetary Fund )

     

    If efforts to address record global public debt are to leave no stone unturned, then weak disclosure laws warrant deep scrutiny. Hidden debt is borrowing for which a government is liable, but which is not disclosed to its citizens or to other creditors. And while this debt—by its nature—is often kept off the official government balance-sheet, it is very real, reaching $1 trillion globally by some estimates.

    While these undisclosed obligations are not large when compared to global public debt topping $91 trillion, they pose a growing threat to low-income countries, already highly in debt with annual refinancing needs that have tripled in recent years. The problem is even more pressing amid higher interest rates and weaker economic growth. Accountability, too, is imperiled without accurate information about the extent of borrowing, which heightens the risk of corruption.

     

    These potentially dire consequences can be avoided by strengthening domestic legal frameworks. Our new paper, The Legal Foundations of Public Debt Transparency: Aligning the Law with Good Practices, presents findings from a survey of 60 countries that examined vulnerabilities and loopholes in national laws that hinder transparency.

     

    Building on a July 2023 paper, our new research shows that fewer than half the countries surveyed have laws that require debt management and fiscal reports, while less than a quarter require disclosure of loan-level information—key legal features for facilitating transparency. We also identify four noteworthy vulnerabilities in domestic laws that enable debt to be hidden: a narrow definition of public debt, inadequate legal requirements for disclosure, confidentiality clauses in public debt contracts, and ineffective oversight.

  • NEIP initiative transforming Ghana – Boakye-Danquah.

     

    NEIP

     

     

     

    The Government’s Spokesperson for Administration and Security, Dr. Palgrave Boakye-Danquah, has praised the National Entrepreneurship and Innovation Programme (NEIP) for having a revolutionary effect on Ghana’s entrepreneurial scene.

     

    NEIP, which was introduced in 2017, has been a major programme that promotes innovation and entrepreneurship in Ghana.

     

    The programme offers cash, mentoring, and training—all vital forms of help to newly established businesses. According to Dr. Palgrave Boakye-Danquah, NEIP has had a major impact on Ghana’s startup ecosystem, resulting in the birth of numerous creative enterprises in a variety of industries.

     

    “NEIP has helped 15,000 start-ups grow their operations by providing financial support and business development services,” Dr. Palgrave Boakye-Danquah said.

     

    He emphasised that by the end of 2024, the initiative has helped create 103,871 jobs, promoting economic diversity and empowering young people.

     

    He said significant achievements had been made within the first year of his administration, citing the free senior high school (SHS) implementation, planting for food and jobs and breathing new life into the health insurance scheme among others.

     

    He indicated that they inherited a troubled economy and that through ingenuity, creativity and boldness, it had now been restored to the right path.

     

    He said a solid economic foundation to propel sustainable growth had been laid and added that he was confident things would only get better for the people.

     

    He indicated that they inherited a troubled economy and that through ingenuity, creativity and boldness, it had now been restored to the right path.

     

    He said a solid economic foundation to propel sustainable growth had been laid and added that he was confident things would only get better for the people.

     

    Dr. Palgrave Boakye-Danquah highlighted the various forms of support provided by NEIP, including funding, training, and mentorship.

     

    The programme emphasis on equipping young entrepreneurs with the necessary skills and resources has been instrumental in reducing unemployment and fostering a culture of self-reliance and creativity.

     

     

    Dr. Palgrave Boakye-Danquah discussed the accomplishments of NEIP and its role in lowering young unemployment and promoting economic growth in an interview on Metro TV.

     

     

     

  • Ghana eagerly awaits $360m IMF money ..as Board is to consider second staff review in June.

     

     

    Adnan Adams Mohammed

    All things being equal, Ghana’s $3 billion extended credit facility programme second review by the International Monetary Fund Staff Level team is ready to be presented the Board for consideration before June ending, a senior official of IMF has said.

    The second staff review, if approved by the Board will pave way for the release of $360 million more as the third tranche of the $3 billion facility.

    International Monetary Fund

    The IMF staff team and Ghana’s team reached a staff-level agreement for the second review of the programme in April this year. Already, Ghana has received $1.2 billion in two separate $600 million tranches.

    “The aim is to bring the review to the IMF’s Executive Board before the end of June, and once approved by the Board, the review would give Ghana access to about $360 million,” Ms. Julie Kozack, Director of Communications of the International Monetary Fund (IMF), has said at a press conference in Washington, D.C. last week.

    She noted that Ghana’s exonomy has seen progress since the programme started.

    “The authorities’ strong policy and reform efforts under the programme are bearing fruit, and signs of economic stabilisation are emerging.”

    She added: “Growth, for example, in 2023, was higher than anticipated, and the growth projections are being revised upward.”

    Also, she noted: “Inflation has been declining rapidly, the fiscal and external positions have improved, and exchange rate volatility has declined quite significantly.”

    “The authorities are making good progress on their comprehensive debt restructuring.” “The domestic debt exchange was completed last year, and on January 12th, the government reached agreement in principle with its official bilateral creditors.”

    ‘Ghana is also engaging with external private creditors to seek their support”, Ms Kazack added.