Day: May 12, 2024

The Ashanti sub-transmission of the Electricity Company of Ghana (ECG) has entered into an inter-sector arrangement with the Ghana Grid Company (GRIDCo) to boost supply capacity and meet the growing demand for electricity in the region.

The mutual agreement was reached at a meeting held at GRIDCo’s headquarters in Anwomaso.

The arrangement, as agreed upon after the meeting, is to install a 145MVA power transformer between GRIDCo and ECG Bulk Supply Points. This will replace one of the three 50MVA transformers to increase the installed capacity and meet the growing demand in load, especially during the peak period, which is between 7 pm and 11 pm.

Before this capacity-building arrangement, the 50MVA transformers at the Anwomaso Bulk Supply Point sometimes stretched to their maximum loading capacity due to the increase in demand at peak times.

However, with the installation of the 145MVA transformer, the total installed capacity will be 245MVA, instead of the existing 150MVA (that is, three 50MVA transforme
rs).

The two stakeholders believe this will help improve supply capacity and reliability in the region. Similarly, at the meeting, there was an agreement to upgrade the Obuasi and Konongo Substations with 50/66 MVA transformers to meet the growing industrial needs in those enclaves and improve supply reliability in the areas.

There were also discussions to send another 145MVA to Ridge BSP shortly to increase the supply capacity of the station, and the region as a whole. After the discussions between the two companies, there was a site visit to assess where the 145 MVA transformer could be installed.

Ing. Peter Kofi Fletcher, General Manager for Ashanti Sub-transmission, and his team discussed with the GRIDCo team on-site to find a suitable location for the new transformer to reduce the material cost of cable laying and other civil works.

Currently, the region has two Bulk Supply Points, Anwomaso and Ridge, that supply high-voltage power to other primary substations, which in turn feed the local transforme
rs to serve consumers.

Source: Ghana Web

Since taking up his role in August 2017, Dr. Maxwell Opoku-Afari has been instrumental in steering the Bank of Ghana through significant transformations, leveraging his deep insights into monetary policy and economic strategy to enhance financial inclusion and integrate cutting-edge technologies in the financial sector.

Today, we explore his journey, the challenges he’s faced, and his strategic vision for the future of Ghana’s economy and its integration within the broader digital landscape of Africa. Join us as we gain an unparalleled perspective from one of the leading figures in African economics.

BI Africa: What inspired you to pursue a career in economics and banking, ultimately leading to your current role as the First Deputy Governor of the Bank of Ghana?

I was not entirely sure what career path to take while in school. I was introduced to the subject of economics way back in secondary school and have never left it since then. By the time I entered the University, I was curious enough to explore fur
ther, decision-making in an environment of scarcity and constraints. I combined economics with statistics, statistical computing, and politics in my undergraduate studies and then decided to narrow down to applied macroeconometrics in my graduate studies.

I strongly believe that these academic skills, combined with very good-quality operational experience and exposure in my early days at the Bank of Ghana, then with the International Monetary Fund (IMF), and other stints with the UNU-WIDER, etc., better prepared me for my current role as the First Deputy Governor.

BI Africa: As the First Deputy Governor of the Bank of Ghana, what guiding principles or values do you prioritize in your leadership approach?

As the First Deputy Governor, I work to support the governor in discharging the Bank’s mandate. I am always guided by strong analytical and evidence-based policymaking. This has guided my oversight role for the departments and functions I oversee. I am also very keen on identifying and helping to develop t
alents and human capital to provide critical support to the Bank in discharging its mandate.

BI Africa: Can you recount a specific instance where you successfully navigated challenges or adversity within the banking sector, demonstrating your resilience and problem-solving skills?

Working as part of the Management team, rolling out the revocation of the first two bank licenses in Ghana was very challenging and tested all our skills, including analytical, balanced judgment, communication, and logistics. But under the guidance of the Governor, we were able to have a seamless exercise that has helped to reposition banks in Ghana as well-capitalized and profitable to support the economy of Ghana.

BI Africa: How do you assess your role at the Bank of Ghana in contributing to the advancement of Ghana’s economy and financial sector, particularly in fostering innovation and sustainable development?

My role in that regard could be looked at on two levels: one will be based on my role as a member of staff of the Ba
nk of Ghana long before I became a Deputy Governor, and then secondly as the current First Deputy Governor.

First, I was privileged to have played a vital role under the leadership of the other governors, as far back as 2007, in the establishment of the Ghana Integrated Payment and Settlement Systems (GHIPSS). This was very necessary considering the challenges faced by Ghana’s payment landscape then, which was characterised by gross inefficiencies, high transaction costs, and limited accessibility with relatively fewer banks and SDIs than what we have today. This presented a huge hindrance to the smooth flow of financial transactions nationwide.

Coming into office as the First Deputy Governor with oversight responsibilities for Payment Systems (and, of course, other key departments), I had yet another opportunity to help enhance the capabilities of GHIPSS to fulfil its goals. To that end, a number of initiatives have been successfully implemented under the leadership of the Governor, the most notable of whi
ch are payment interoperability, GH-QR Code and GhanaPay Mobile Money.

We also envisioned that the success of GHIPSS in optimally benefitting Ghanaians depended largely on the advancement of the Fintech Sector. Several key reforms were therefore embarked on by the Governor, myself and the second Deputy Governor. For example, we ensured the passage of the Payment Systems and Services Act, 2019 (Act 987), followed by the establishment of the FinTech and Innovation Office in early 2020.

The aim of FinTech and Innovation is to drive cash-lite, e-payments, and digitization initiatives that align with the government’s broader digitalization agenda. The overarching objective of this agenda is to digitize fiscal revenue collection, support a cashless society and improve digital literacy, among others.

Today, the significance of GHIPSS in fostering payment interoperability and facilitating innovations in the payment ecosystem is apparent. More remarkable is how the GHIPSS platform compliments the FinTech ecosystem
in transforming financial service delivery and advancing the financial inclusion agenda of the Government. Apart from attaining a financial inclusion index of 96% (Demand-Side Survey Report, 2021), the impact of these initiatives on socio-economic lives of Ghanaians is also evident in access to collateral-free digital loans to the lowest segments of the population (street vendors, market women, etc.).

According to the data, a total of 14.22 million collateral-free loans, valued at GHS 7.10 billion (or USD 582 million), was disbursed to individuals and SMEs in 2023 through their mobile phones. The same can be said of increased access to remittance and other financial services such as insurance, with the data also showing that inward remittance terminated through mobile money wallets increased from GHS 11.38 billion in 2022 to GHS28.32 billion in 2023 (representing a 149 per cent increase), with a significant portion of this received through mobile phone in the comfort of customers’ homes and workplaces.

BI A
frica: Considering the theme of the 3i Africa Summit, how do you anticipate the outcomes of the event contributing to the Bank of Ghana’s objectives in advancing digital economic potential across the continent?

The primary objective of the 3i Africa Summit is to highlight the potential of African FinTech and digital economies, aiming to inspire increased investment in the sector to amplify its impact on the continent’s economic development and growth. This summit serves as a platform for stakeholders, including policymakers, investors, and innovators, to come together and address critical challenges hindering the growth of the FinTech sector, particularly in the realm of policies and regulations.

By collaborating, these stakeholders will co-create initiatives to overcome these obstacles and accelerate the expansion of the FinTech industry. Ultimately, the overarching goal is to foster positive change, sustainable development, and prosperity throughout Africa.

BI Africa: How do you envision the role of the
Bank of Ghana in catalyzing the growth of Africa’s FinTech and digital economic sector?

The Bank of Ghana has made significant progress in its regulation and promotion of the FinTech Sector and continues to implement NextGen policies to ensure its relevance amidst the ever-changing needs of Ghanaians. Our FinTech regulatory set-up and evolution of policies such as the regulatory sandbox, eCedi and the Business Sans Borders (BSB) initiatives (just to mention a few) have leapfrogged the Bank to one of the centres of excellence. As a result, the Bank has become a hub for visiting by our colleague central banks, especially from the sub-region, to glean insights for enhancing their own regulatory frameworks.

Of course, the 3i Africa Summit itself signifies an invaluable platform for regulators to exchange best practices. Moreover, it offers an opportunity to engage with innovators and investors, ensuring that regulatory reforms are informed by a comprehensive understanding of industry perspectives. This collabor
ative approach aims to foster a conducive environment for the continued growth and success of the FinTech sector.

BI Africa: How do you anticipate the outcomes of the 3i Africa Summit contributing to the Bank of Ghana’s objectives in advancing digital economic potential across the continent?

These can be seen in various ways, including:

– Investment: The deal room and pitch fest are expected to generate concrete investment deals. There should be even more investments in the medium term, considering the expected regulatory reforms that will be pursued based on a comprehensive view of the sector’s challenges (including perspectives of capital providers and innovators).

– Regulatory harmony: Regulators will hopefully commit to joint regulatory reforms, including ambitious policies like cross-border payments, FinTech passporting, etc. Concrete initiatives in favour of cross-border payments will have been agreed upon, along with clear implementation plans.

– Excitement in the FinTech ecosystem: Players in the
FinTech sector, including start-ups and budding innovators, will have been inspired and encouraged to pursue their dreams, which will ultimately support the growth of the FinTech ecosystem.

Source: Ghana Web

At the inauguration of the National Democratic Congress (NDC) Aldershot branch of the UK and Ireland Chapter, former President John Dramani Mahama delivered a passionate speech, emphasizing the crucial importance of winning the upcoming election for the betterment of Ghana.

Addressing the audience, the NDC’s flagbearer for the 2024 elections underscored the urgent need for change, citing widespread deterioration across various sectors in Ghana, including healthcare and education.

He lamented the decline of state-owned enterprises, pointing out stark examples of once-profitable entities now struggling to survive.

Mr. Mahama highlighted the drastic decline in the performance of the Produce Buying Company (PBC), which went from purchasing 30% of Ghana’s cocoa exports in the 2016/2017 crop year to a current state of purchasing none.

He also noted the dire financial situation at PBC, with employees going unpaid for 10 months and banks repossessing the company’s properties due to unpaid credit.

Drawing further
attention to the plight of state-owned enterprises, Mr. Mahama cited the case of GIHOC Distilleries, which under his administration was a thriving entity, generating capital from operations and investing in expansion.

However, he lamented that GIHOC is now struggling to meet its financial obligations, including staff salaries.

Mr. Mahama concluded by condemning the perceived mismanagement of state-owned enterprises under the current administration, declaring that virtually every such enterprise has suffered under the watch of President Nana Akufo-Addo.

Source: Ghana Web

In Ghana, when talk is made about wealthy people, the names that mostly come to mind are the likes of Osei Kwame Despite, Sir Sam Jonah, Ibrahim Mahama, among others.

However, that is not exactly the truest picture of the subject.

In a video posted by The Billionaire Chronicles and sighted by GhanaWeb Business, it details the families regarded the eight richest in Ghana.

Below is the list of these eight families in Ghana:

Irani Family

Two Lebanese brothers, Anthony and Edmond, migrated to Ghana and started producing wheat flour for the local bread and pastry industry.

Although the duo have since passed away, the business is still running.

The Irani family has a considerable net worth of US$800 million, making them the richest family in Ghana, according to the video.

Kalmoni Family

This family owns Japan Motors, Silver Star Tower, and Lakeside Estate.

Their net worth is said to be $700 million.

Awuah Darko Family

Upon returning from his studies abroad, Awuah Darko founded Marine and General Insuran
ce Brokers in 1969.

He subsequently established Vanguard Group of Companies.

The Awuah Darko family, according to details from the video, is worth a staggering $650 million.

Milad Millet Family

Milad founded a textile corporation limited in 1958 with the primary focus on towel manufacturing.

However, in the 1980s, it rebranded to Shanti Spintex.

The details showed that in 1997, the company changed its name again to Printex.

The family’s wealth is estimated to be around $620 million.

Adamu Iddrissu Family

Adamu Iddrissu is the Founder of Global Haulage Limited and Royal Bank.

The Iddrissu family’s wealth is estimated to be around $550 million.

The Hitti Family

In 1973, Robert Hitti established Qualiplast.

In 1992, the company underwent a name change to Duraplast.

This family owns Suvinil Paint and Ashfoam.

With their combined assets, the Hitti family’s net worth is $540 million, placing them in the top 1% of Ghana’s elite.

Azar Family

Elias Azar, a Lebanese migrant who settled in Ghana, founde
d Azar Chemical Industries as a family business in 1968.

Initially operating as City Paint, the company focused on trading building materials and importing paint.

The business is run by Ghazi Azar and Rustom Azar (deceased).

Details from, the video said that with their combined assets, the Azar family’s net worth exceeds $520 million.

The Bitar Family

John Bitar, a Ghanaian with Lebanese roots, together with his family, founded John Bitar and Co Ltd.

He started as a cash crop farmer in the Brong Ahafo Region in 1955, and his company has since flourished into Ghana’s top producer of high-quality wood products under the free zones initiative.

His net worth is said to stand at $450 million, making his family the eighth richest in Ghana.

Source: Ghana Web

The United Kingdom (UK) expects an increase in freight movement through Ghana’s ports as the Prempeh I International Airport comes into service in the Ashanti Regional capital, Kumasi.

According to the British High Commissioner to Ghana, Harriet Thompson, this growth could be facilitated by the airport’s operation, coupled with existing partnerships between the two countries and the African Continental Free Trade Area (AfCFTA).

Approximately 40,000 tonnes of freight moved through Ghana’s airports to the UK last year, pushing the strength of trade between both countries to £2.2 billion.

She hoped to see that number go up with the commissioning of the Prempeh I International Airport. Thompson reaffirmed the UK’s commitment to supporting Ghana in promoting sustainable economic growth.

According to the UK High Commissioner in Ghana, the UK-Ghana partnership agreement, as well as the African Continental Free Trade Area (AfCFTA), will be instrumental in that increase.

Thompson highlighted the importance of col
laboration between the UK and Ghana in fostering trade and infrastructure development.

She underscored the UK’s reputation in construction, stressing the quality of infrastructure that British companies build, known for durability and longevity.

She also mentioned the partnership approach, where British companies collaborate with local firms, sharing expertise and contributing to local development.

The commissioning of the Prempeh I International Airport marked a significant milestone in Ghana’s aviation sector.

The airport is named in honor of the 14th Asantehene, Otumfuo Agyemang Prempeh I, reflecting the rich cultural heritage and historical legacy of the Ashanti kingdom.

With the projected annual passenger volume of one million, the airport will provide substantial opportunities and support the tourism industry for the people of the Ashanti Region.

Source: Ghana Web

Togbe Afede XIV, the Agbogbomefia of the Asogli State, has called out the Bank of Ghana (BoG) regarding its maintained high monetary rate.

According to him, the reasons given by the central bank for the recent high monetary policy are not convincing.

On March 25, 2024, the Monetary Policy Committee (MPC) of the Bank of Ghana decided to maintain the policy rate at 29%, citing persisting upside risks to inflation.

Reacting to this, Togbe Afede maintained that the country’s inability to achieve and maintain low inflation is due to supply-side, rather than demand-side factors.

‘BOG’s ‘mopping up excess liquidity’ explanation for its high monetary policy rate is not convincing. ‘Excess liquidity’ presumes a certain optimal liquidity that has still not been defined. Secondly, supply-side rather than demand-side factors are at the root of our inability to achieve sustained low inflation.

“Thirdly, it is difficult to persuade people to save when they are struggling to make ends meet,’ Togbe Afede explained.

Tog
be Afede, who once served as a board member of the Central Bank of Ghana, from 2003 to 2013, also questioned why the International Monetary Fund (IMF) insisted on these high-interest rates that have not worked for Ghana in close to two decades.

‘It is surprising, therefore, that the IMF insists on these high-interest rates that have not worked for us, the reason why we are engaging them for the seventeenth (17th) time!’ he pointed out in a statement.

Source: Ghana Web