News Guide Africa

Tag: Nana Addo Dankwa Akufo-Addo

  • Ghana’s economy is firmly on the path of recovery – Akufo-Addo says attributing it to BoG data

     

    The President of Ghana

     

    President Nana Addo Dankwa Akufo-Addo has called on Ghanaians to continue working with the government to build an economy that is stable, inclusive, and prosperous.

     

    He said this last week,  when he commissioned The Bank Square, the magnificent new headquarters of the Bank of Ghana, located in the heart of Accra.

     

    He notes that this architectural masterpiece is more than just a building; it represents a beacon of Ghana’s financial strength, resilience, and aspirations for a sustainable future.

     

    Designed with eco-friendly technologies and cutting-edge innovations, it stands as a symbol of modern Ghana, prepared to meet the demands of a dynamic global economy, Mr Akufo-Addo said.

     

     

    President Akufo-Addo said “The Bank Square reflects the remarkable progress of our nation. Recent data from the Bank of Ghana shows that Ghana’s economy is firmly on the path of recovery. Provisional GDP growth of 6.9% in the second quarter of 2024, with a robust non-oil growth of 7.0%, highlights the strength of our agriculture, industry, and services sectors.

     

    “Inflation has been sharply reduced from 54.1% in 2022 to 22.1% as of October 2024, bringing relief to households and businesses alike. These achievements are further bolstered by a trade surplus of $2.78 billion and international reserves of $7.5 billion, which provide a strong buffer against external shocks.”

     

     

    He added “This milestone is a testament to the Bank of Ghana’s commitment to sound monetary policies under the leadership of Governor Ernest Addison and his dedicated team. I applaud their efforts, as well as the creativity and expertise of the architects, engineers, and contractors—especially GoldKey Properties, a wholly Ghanaian entity—that brought this vision to life. Together, we are building a foundation for a resilient economy, inclusive growth, and a brighter future for all Ghanaians.”

     

    “As we celebrate this achievement, I call on all of us to continue working together to build an economy that is stable, inclusive, and prosperous.

     

    “The Bank Square is not just a symbol of what we have accomplished; it is an inspiration for what lies ahead. Let us remain united in our efforts to make Ghana great and strong!” he said.

     

     

  • Eurobond restructuring signals confidence in economy – Akufo-Addo touts

    Ghana’s Eurobond Debt

     

    Adnan Adams Mohammed

     

    Ghana’s President, Nana Akufo-Addo, has touted recent agreement with Eurobond holders as a clear indication of renewed investor confidence in the country’s economy.

     

    The government, fortnight ago, announced success in securing almost 100% participation in the Eurobond Debt Exchange Programme, which concluded on 30th September 2024.

     

    The debt restructuring exercise, a key requirement under the International Monetary Fund (IMF) programme, was part of efforts to address Ghana’s growing debt burden and secure a US$3 billion bailout over three years.

     

    “The restructuring will be completed by next week, with bondholders exchanging their old bonds for new ones under revised terms. The new terms would allow Ghana more flexibility in repaying its debt”, President Akufo-Addo indicated during an interview with France 24, last week.

     

    He expressed optimism that the high level of participation, with 98.6% of bondholders agreeing to the deal, reflects growing confidence in Ghana’s economic recovery, particularly following the financial strain caused by the COVID-19 pandemic.

     

    He added that the agreement involves different interest rates and will significantly ease the financial burden on the country. “Thirteen billion dollars of our debt has been restructured, with $5 billion written off. In total, we’re talking about savings of around $10 billion, which is a major boost for the economy,” Akufo-Addo noted.

     

    He expressed optimism that improving macroeconomic indicators would soon lead to tangible economic development and better living standards for Ghanaians.

     

    As part of the restructuring deal, a significant number of bondholders opted for what is known as the “disco menu,” which involves a 37% reduction in the face value of their bonds and interest payments of 5% from 2024 to July 2028, rising to 6% thereafter. These investors will receive three new bond instruments in return.

     

    Others chose the “par menu,” which preserves the nominal value of their bonds but offers a lower interest rate of 1.5%, with the new bonds maturing in January 2037.

     

    According to a statement from the bondholders, this Eurobond Debt Exchange Programme is a crucial part of Ghana’s broader debt restructuring efforts under the IMF deal.

     

    The swap of old securities for new ones is expected to take place around 9 October 2024 with the entire settlement process finalised shortly afterwards.

     

     

  • A GHS8.2bn SME growth and opportunity programme unveiled.

     

     

     

    President Nana Akufo-Addo has unveiled the SME Growth and Opportunity (GO) Programme at the SME Growth and Opportunity Summit held at the Kempinski Hotel, Accra.

     

    The initiative is aimed at boosting Ghana’s economic landscape.

     

    The comprehensive programme is backed by a substantial GHS 8.2 billion funding package and aims to support small and medium-sized enterprises (SMEs), which are pivotal to the nation’s economic prosperity.

     

    President Akufo-Addo emphasized the critical role SMEs play in Ghana’s economy, highlighting that they constitute 92% of businesses and contribute 70% to the GDP. Despite their significant contributions, SMEs face numerous challenges, particularly in accessing finance, which hinders their potential for growth and innovation.

     

    “The entrepreneurial spirit of Ghanaians has always been a driving force behind our economic transformation. Our SMEs are the backbone of our economy, and it is imperative that we support them to overcome the barriers they face,” President Akufo-Addo stated.

     

    The SME GO Programme, coordinated by the Ministries of Finance and Trade and Industry, seeks to address these challenges through targeted financing solutions and technical assistance. The programme’s key components include substantial funding allocations and the establishment of supportive infrastructure to bolster SME growth.

     

    Ghana Exim Bank: Supported with GHS 700 million, the Ghana Exim Bank will offer highly subsidized financial support for both capital and operating expenditures. A dedicated window for the 1-District-1-Factory initiative will also be set up to ensure optimal synergies with this structural project.

     

    Ghana Enterprises Agency (GEA): Allocated GHS 230 million, the GEA will target high-growth SMEs employing 100 or more people, providing small-scale grants and loans of up to two years at highly subsidized rates. This initiative aims to support businesses with strong potential for expansion and job creation.

     

    Development Bank Ghana (DBG): Utilizing GHS 1.4 billion, the DBG will provide loans with tailored repayment conditions through financial institutions. These loans, with terms of up to five years, will support SMEs with robust growth prospects.

     

    Additionally, the programme will see the establishment of a Food Innovation Hub on the University of Ghana campus. This hub will support food industry SMEs with modern processing equipment, warehousing, testing labs, and regulatory assistance. The hub aims to help SMEs that lack sufficient capital to access state-of-the-art processing facilities, thus enabling them to scale up production and meet export standards.

     

    “The Akufo-Addo Government is being intentional about supporting SMEs that are too large for small business finance yet too small to attract substantial commercial lending. This initiative aims to create ‘SME champions’ capable of taking Ghanaian products and innovations global,” the President said.

     

    The programme reflects the government’s broader strategy to foster a competitive, innovative, and globally oriented SME sector, which is crucial for Ghana’s long-term economic prosperity. The SME GO Programme is a continuation of the government’s commitment to economic transformation, following previous policies under the post-COVID plan for Economic Growth (PC-PEG).

     

    President Akufo-Addo reiterated the importance of a collaborative approach involving the government, private sector, and international partners to create a conducive environment for SMEs to thrive. The programme will be coordinated jointly by the Ministry of Finance and the Ministry of Trade and Industry, with the Ghana Enterprises Agency, Ghana EXIM Bank, and Development Bank Ghana serving as the principal implementing agencies.

     

    The Ministry of Finance has successfully mobilized GHS 8.2 billion from both public and private sector sources, earmarked for disbursement to eligible SMEs under the SME GO Programme. This funding will be disbursed through participating financial institutions, ensuring that SMEs with high-growth potential receive the support they need to expand and create impact across their communities.

     

    With this bold step, Ghana aims to enhance its long-term competitiveness and ensure sustainable growth by empowering SMEs, which are the backbone of the nation’s economy. President Akufo-Addo concluded his address by emphasizing the need for collective effort to break the barriers hindering SME growth and unleash their full potential for the benefit of all Ghanaians.

     

    By creating an enabling environment that supports innovation, entrepreneurship, and resilience, the SME GO Programme is set to transform the economic landscape of Ghana, driving inclusive and sustainable growth for years to come.