News Guide Africa

Tag: Jobs

  • 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.

     

     

     

  • BoG blames cedi depreciation on fiscal operations

    BoG blames cedi depreciation on fiscal operations

    By Elorm Desewu

    The Bank of Ghana, (BoG) has blamed the recent sharp depreciation of the cedi on fiscal operations of the government.

    According to the BoG, the Ghana cedi came under pressure in September and October on fiscal concerns. Pressure to the currency came from energy and corporate demand. Also, the strength of the US dollar weighed on the Ghana cedi.

    However, this pressure has been partly moderated by the central banks special forex auction for Bulk Distribution Companies. Furthermore, the currency is being supported with inflows from the cocoa syndicated loan, mining, remittances and forex purchases from the mining companies.

    However, as the dollar continues to strengthen due to policy rate hikes and U.S safe-haven status, the cedi may continue to experience some volatility in the near term. Also, Energy related and corporate demand may persist, but successful negotiations of the US$3 billion IMF package may offset some of the pressures.

    In the interbank market, the cedi depreciated by 53.83 percent, 45.50 percent and 46.84 percent against the dollar, pound and the euro respectively on a year-to-date basis. This was against an appreciation of 3.54 percent against the euro and a depreciation of 2.38 percent and 2.57 percent against the dollar and pound respectively during the same period in 2021.

    Historically, the cedi was weaker in 2022 on a year-to-date and monthly basis compared to the same period from 2017-2021. Also, the cedi was more volatile during the first 226 transaction days in 2022 compared to the same period from 2017-2021.

    In reference to the major trade partners’ currency movements, the Ghana cedi depreciated by 36.6 percent in nominal trade weighted terms and 35.6 percent on forex transaction weighted terms in October 2022.

    This compares with 0.28 percent and 0.27 percent depreciation in nominal trade weighted terms and nominal foreign exchange transaction weighted terms over the same period in 2021.

    In real bilateral terms, the Ghana cedi depreciated by 32.4 percent, 34.9 percent and 38.1 percent against the US dollar, euro and the pound sterling during October 2022. Comparatively, for the same month in 2021, the Ghana cedi’s real exchange rate depreciated by 0.6 percent, 0.4 percent and 2.3 percent against the dollar, the euro and the pound sterling respectively, over the same period in 2021.

    The Ghana cedi depreciated by 34.8 percent and 32.7 percent in real trade weighted terms and real forex transaction weighted terms in October 2022. These compare with a depreciation of 0.6 percent and 0.6 percent in real trade weighted terms and real FX transaction weighted terms respectively for the same period in 2021.

  • Job scarcity on the rise

    Job scarcity on the rise

    By Elorm Desewu

    Job vacancies in the country have dropped by almost 40 percent for the first eight months of 2022, according to a report from the Bank of Ghana.

    The number of jobs advertised in selected print and online media, which partially gauges labour demand in the economy, decreased in August 2022 relative to what was observed in the corresponding period a year ago.

    In total, 2,467 job adverts were recorded as compared with 4,051 for the same period in 2021, indicating a decline of 39.1 percent year-on-year.

    On a month-on-month basis, the number of job vacancies in August 2022 increased by 13.6 percent from the 2,172 jobs advertised in July 2022. Cumulatively, for the first eight months of 2022, the total number of advertised jobs declined by 12.4 percent to 20,929 from 23,892 recorded during the same period in 2021.

    The Bank’s updated Composite Index of Economic Activity (CIEA) recorded an annual growth of 0.5 percent in July 2022, compared with growth of 20.0 percent and 3.9 percent in the corresponding periods of 2021 and 2020 respectively.

    The total number of private sector-SSNIT contributors, which partially gauges employment conditions, marginally declined to 873,406 in July 2022 compared with 873,612 for the same period in 2021. On a month-on-month basis, total number of private sector-SSNIT contributors decreased by 4.6 percent from the 915,516 individuals recorded in June 2022.

    Cumulatively, for the first seven months of 2022, the total number of private sector contributors increased by 9.1 percent to 6,522,383 from 5,981,073 recorded over the corresponding period in 2021.

    Consumer spending, proxied by domestic VAT collections and retail sales, posted a positive performance in July 2022, compared with the corresponding period in 2021. Domestic VAT collections increased by 30.6 percent on a year-on-year basis to GH¢754.64 million.

    Cumulatively, total domestic VAT for the first seven months of 2022 went up by 18.3 percent to GH¢4,584.75 million, compared with GH¢3,874.18 million for the corresponding period of last year. Retail sales increased by 4.3 percent (year-on-year) to GH¢115.74 million in July 2022, up from the GH¢111.02 million recorded in the same period in 2021.

    On a month-on-month basis, retail sales went up by 7.0 percent in July 2022 from GH¢108.21 million in the preceding month. In cumulative terms, retail sales for the first seven months of 2022 increased by 4.1 percent.

    Activities in the manufacturing sub-sector, gauged by trends in the collection of direct taxes and private sector workers’ contributions to the Social Security and National Insurance Trust (SSNIT) Pension Scheme, improved in July 2022.

    Total Direct Taxes increased by 37.7 percent (year-on-year) to GH¢2,146.92 million in July 2022, relative to GH¢1,558.78 million recorded in the same period in 2021. Cumulatively, total Direct Taxes collected during the first seven months of 2022 went up by 23.8 percent to GH¢16,971.67 million, from GH¢13,709.29 million for the same period in 2021. In terms of contributions of the various sub-tax categories, Income tax (PAYE and self-employed) accounted for 48.0 percent, Corporate tax accounted for 40.5 percent, while “Other Tax Sources” contributed 11.5 percent.

    Total private sector workers’ contribution to the SSNIT Pension Scheme increased by 15.1 percent in yearon-year terms to GH¢272.93 million in July 2022, compared with GH¢237.13 million a year earlier. Cumulatively, for the first seven months of 2022, the contribution went up by 23.5 percent to GH¢1,801.81 million, relative to GH¢1,458.65 million recorded in the same period in 2021.