Day: June 2, 2024

China has sustained its status as Ghana’s preeminent import source in 2023, with imports amassing a total of GHS33.9 billion – an ascent from GHS26.4 billion in 2022. This information is derived from the Ghana 2023 Trade Report, issued by the Ghana Statistical Service.

The Trade Report reveals that China accounted for a 22.5% share of Ghana’s imports last year, marking a marginal decrease from 23.2% in 2022.

The Russian Federation has emerged as a notable contributor, supplanting the United Kingdom among the top five, with imports predominantly composed of mineral fuels and oils.

The Netherlands persisted as a significant player, with Ghana’s imports of mineral fuels and oils reaching GHS17.3 billion. India and the United States altered their standings, with India ascending to the fourth-largest import source at GHS11.7 billion, while the USA attained the fifth position with imports valued at GHS10.9 billion.

A compilation of ten products constituted over a third of all imports. Diesel-automotive gas oil
recorded the highest import value at GHS27.1 billion, succeeded by light oils, motor spirit, and super at GHS22.3 billion.

In terms of the mode of transport for imports in the previous year, sea transport encompassed 89.1 percent of the total import value, road transport contributed 6.1 percent, and air transport held the smallest fraction at 4.7 percent.

Source: Ghana Web

Professor Lord Mensah, a Senior Lecturer at the University of Ghana Business School (UGBS), has expressed concern over the GHS10.50 billion loss reported by the Bank of Ghana (BoG) for the financial year ending 2023.

He explained that the loss sends a bad signal and may decrease confidence in the market.

According to him, this will also lead to further currency devaluations or capital outflows.

In an X post on June 1, 2024, he stated ‘BoG’s GHS10.5 billion loss, bad signal to the market.

‘The loss may decrease confidence in the market. Market players may lose confidence in BoG’s ability to manage the economy, leading to further currency devaluations or capital outflows.’

The Bank of Ghana has reported a GHS10.5 billion loss for the financial year ending 2023, attributing the significant deficit primarily to an increase in total interest expenses on its open market operations.

In its 2023 Annual Report and Financial Statement, the Bank of Ghana clarified that no funds were allocated for reserve appropria
tion, as the reserve amount was in deficit as of December 31, 2023.

Despite this, the central bank emphasized its policy solvency, assuring its ability to generate sufficient realized income to cover the costs associated with conducting monetary policy operations.

BoGs GHS 10.5 billion loss, bad signal to the market. The loss may decrease confidence in the market. Market players may lose confidence in BoG’s ability to manage the economy, leading to further currency devaluations or capital outflows.

– The Prof (@stigue2001) June 1, 2024

Source: Ghana Web

The African Development Bank Group (AfDB) has unveiled its new ten-year strategy, a blueprint to confront Africa’s pressing challenges and to help put the continent firmly back on track towards sustained economic growth and prosperity.

Unveiling the strategy during the Bank Group’s Annual Meetings in Nairobi, Kenya, African Development Bank Group President, Akinwumi Adesina said, ‘As Africa’s premier development finance institution, and Africa’s solutions bank, we are acutely aware that the next decade will be decisive in transforming the continent.”

‘Therefore, as we celebrate 60 years of making a difference in the countries and lives of the people of Africa, we remain resolute in our determination to accelerate the support we provide to African countries,’ he stated.

The aftermath of the COVID-19 pandemic has resulted in heightened food insecurity and a burgeoning debt crisis across Africa. At the same time, the impacts of climate change are intensifying and accelerating, alongside a surge in conflict an
d political instability. Compounded by a youthful demographic outpacing job creation, Africa is witnessing a significant exodus of its future workforce seeking opportunities abroad.

The strategy, approved by the Board earlier this year, sets out decisive and urgent actions the Bank will take to support African countries navigate the unprecedented global and regional challenges.

These actions will build on Africa’s multiple unique assets and reignite momentum towards achieving the African Union’s Agenda 2063 and the United Nation’s Sustainable Development Goals, ultimately fostering lasting growth.

Central to the 2024-2033 strategic vision is the belief in Africa’s vast potential for societal and economic transformation. By leveraging the youngest and fastest growing workforce in the world, rapidly growing urban markets, the wealth of natural resources and vast clean energy potential, Africa stands poised to drive sustainable growth and make significant contributions to global solutions over the next decade
.

‘The Ten-Year Strategy outlines how the Bank will invest in Africa’s best asset: its vibrant young men and women. Africa’s population, which is the fast growing in the world, presents the continent with an unparalleled demographic window of opportunity,’ Adesina said.

The new strategy articulates a vision of a prosperous, inclusive, resilient, and integrated Africa, underpinned by two key objectives over the next decade: accelerating inclusive green growth and fostering prosperous and resilient economies. With an emphasis on sustainability, the Bank will strive to balance environmental concerns, equity, and economic advancement.

Building upon the past decade of successful High 5 implementation, the Bank aims to accelerate and scale up its efforts, focusing on transformative projects with far-reaching impacts. To optimise results while managing risks, the Bank will streamline its operational model for increased agility and effectiveness. The Bank’s High 5 operational priorities listed below, are integral
to achieving these objectives:

Light up and power Africa: Promote universal access to modern and affordable energy.

Feed Africa: Ensure food security through agricultural transformation.

Industrialise Africa: Catalyse manufacturing as a critical driver of job creation.

Integrate Africa: Foster regional integration and value chains for a more cohesive economy.

Improve the quality of life: Enhance living standards, particularly for women and youth.

Key cross-cutting priorities include promoting gender equality, investing in young people, responding to climate change, and investing in climate action, supporting fragile states, and promoting good governance and economic stability.

The Bank sees the pivotal role of the private sector in driving Africa’s transformation. Over the next decade, it will strengthen collaboration with the private sector, prioritising investments in firms, value chains, and micro, small, and medium-sized enterprises especially those led by women and youth.

The magnitude and urgenc
y of the challenge will require greater resources than before. The Bank pledges to mobilise resources from diverse sources, including domestic revenues and private finance. It aims to triple private-sector finance by 2033 while bolstering its financing capacity through innovative mechanisms.

In response to calls for Multilateral Development Banks (MDBs) to maximise the potential of their balance sheets, the Bank will pursue various options to boost its financing capacity over the life of the Ten-Year Strategy.

Measures include the Sustainable Hybrid Capital, Risk Transfers and re-channeling of significant portions of the International Monetary Fund’s Special Drawing Rights through Multilateral Development Banks.

The Strategy outlines how the Bank will answer the call for MDBs to scale up urgently their efforts to respond to the priorities and significant ambitions of African countries and tackle global and regional challenges affecting the people of Africa.

MDBs are essential to addressing the immense glo
bal and regional challenges the world faces. They are a valuable source of low-cost finance, technical knowledge, and policy advice for emerging and developing countries.

Highlights of the Strategy:

Investing in women and young people: The Ten-Year Strategy outlines how the Bank will invest in Africa’s best asset: its vibrant young men and women. Africa’s population, which is the youngest and fastest growing in the world, presents the continent with an unparalleled demographic window of opportunity.

The Bank will address disparities and promote inclusivity by empowering women and youth, enabling them to contribute meaningfully to sustainable economic growth and prosperous societies.

Climate change adaptation: Recognising Africa’s vulnerability to climate change, the Bank will promote low-carbon development pathways aligned with the Paris Agreement while safeguarding biodiversity and nature.

Supporting fragile states and building resilience: Amid rising conflicts, fragility, and political instability in A
frica, the Bank will intensify efforts to assist fragile countries. Special attention will be given to tackling cross-border challenges and reducing the isolation of landlocked and remote areas.

Promoting good governance: The Bank emphasises the importance of economic governance, including domestic resource mobilisation, transparent financial management, and anti-corruption measures. Sustainable debt management practices will also be prioritised to ensure long-term economic stability.

Source: Ghana Web

A member of the Progressive People’s Party (PPP), Divine Nkrumah, has criticized those who have attacked Dr. Papa Kwesi Nduom following his recent campaign to have the license of GN Bank, which was revoked, restored.

The politician said it is unfortunate that some members of the government continue to insult and attack Dr. Nduom whenever he speaks against the injustice done to him by the Nana Addo-led administration.

In an opinion piece, he criticized the government, describing the revocation of GN Bank’s license as an act of injustice, pure wickedness, and an obvious abuse of power.

To him, Dr. Nduom, who is the founder of the PPP and Chairman of Groupe Nduom, deserves a fair hearing and not mockery.

To members of the opposition National Democratic Congress (NDC) who are laughing at Dr. Nduom and claiming he deserves what is happening to him because he supposedly supported Nana Addo in 2016, he advised them to be measured in their mockery.

‘Despite our political differences, we shouldn’t condone injusti
ce, wickedness, and obvious abuse of power. We all deserve a fair hearing. If you can’t speak to support the plight of Nduom, don’t mock him or gloat, because it can happen to you too.’

He wondered why the government Dr. Nduom is said to have supported would treat him in this manner.

He explained that Dr. Nduom did not hate former President Mahama but rather spoke against some of his bad policies.

He said that as a candidate in the 2016 general elections, Dr. Nduom campaigned and projected himself as the best candidate who was far better at managing the country, and in doing so, he criticized the policies of Mahama he felt were not good.

This, he noted, should not be interpreted as hating the former president.

‘Nduom does not hate Mahama nor campaigned against him because he was in bed with Nana Addo’s NPP. The fact is, he was also a presidential candidate in the 2016 elections and was campaigning for himself to become the president of Ghana. He believed he was in a better position to lead the country th
an any of the other candidates. In the process, he was found speaking against Mahama and some of his policies that he felt were not helping Ghanaians.

Anything he said about Mahama was in light of also projecting himself as a better candidate at the time, which also went a long way to make the Mahama government unpopular. Isn’t this an expected natural outcome of any campaign against the ruling party? Probably, the NPP and Nana Addo might be the indirect beneficiaries of Dr. Nduom’s campaign in terms of electoral fortunes. The PPP and Nduom did not intend to directly campaign to benefit the NPP in any way. They wanted to win and believed it was possible,’ he said.

He further argued that ‘If we all knew what the future held for us in the past, there are certain mistakes that we would have avoided. You think if Nduom knew Nana Addo’s government would have caused him this harm, he would have done things that supposedly supported Nana Addo’s agenda? Nobody knows tomorrow, so we should all tread cautiously.’

He
went on to say that those who lost their employment as a result of the company’s collapse are the ones who are most affected by the problem, thus criticizing the business magnate simply serves to aggravate their situation.

‘In any case, the Ghanaians who were employed by GN are the ones who were affected by the collapse of the company. Mocking Dr. Nduom only serves to rub salt into the wounds of the several Ghanaians who were rendered jobless.

Mocking Dr. Nduom also mocks the millions of dollars wasted to collapse his and other businesses, rather than using that same amount or less to prop them up.’

Read his full opinion below

Concerning the GN Bank Case: A Call for Balanced Perspective, Not Mockery or Mistreatment.

Ever since Dr. Nduom’s companies, including GN Bank, were collapsed under the Nana Akufo-Addo government, whenever Dr. Nduom speaks about the injustice done to him regarding the revocation of GN Bank’s license or tries to complain or call for the restoration of GN Bank, we have had people wit
hin the government coming after him. Shockingly, even some people, especially NDC sympathizers, come to laugh at him and mock him for suffering under this government because they believe he supported them in opposition.

They go so far as to say that the God of Mahama is the one punishing Dr. Nduom because he vehemently campaigned against former president Mahama for his loss. Some NDC sympathizers even believe that Dr. Nduom worked for or with President Nana Addo for the NPP to win power in 2016, and as a result, if Nduom is suffering under this NPP government, he should keep quiet and suffer and has no right to complain because he was one of them. They seem not to care because it is Nduom who is suffering, and they believe he deserves what he is going through.

It is not fair to wish Nduom to suffer simply because he campaigned against Mahama in 2016. What has happened to Nduom can happen to anyone, be it in power now or in opposition, and we all have to speak against such mistreatment meted out to Nduom unf
airly.

Here are the facts:

Nduom does not hate Mahama nor campaigned against him because he was in bed with Nana Addo’s NPP. The fact is, he was also a presidential candidate in the 2016 elections and was campaigning for himself to become the president of Ghana. He believed he was in a better position to lead the country than any of the other candidates. In the process, he was found speaking against Mahama and some of his policies that he felt were not helping Ghanaians.

Anything he said about Mahama was in light of also projecting himself as a better candidate at the time, which also went a long way to make the Mahama government popular. Isn’t this an expected natural outcome of any campaign against the ruling party? Probably, the NPP and Nana Addo might be the indirect beneficiaries of Dr. Nduom’s campaign in terms of electoral fortunes. The PPP and Nduom did not intend to directly campaign to benefit the NPP in any way. They wanted to win and believed it was possible.

Now, to the people who believe Dr.
Nduom’s campaign benefited Nana Addo and the NPP, shouldn’t they rather spend their energies on asking the right questions about why Nana Addo and the NPP that supposedly benefited from Dr. Nduom’s campaign are the ones rather destroying his companies instead of helping him? Shouldn’t we all be concerned that a supposed ally like Nana Addo and his cronies are the ones being wicked towards Nduom?

Does Nduom really deserve that from the people in the ruling government? Have they been fair to him if that’s how some of you feel? If there’s anything to say about the GN Bank case, shouldn’t it be directed to the doorstep of Nana Addo for having caused this mess for Nduom and many other Ghanaians alike? Instead of mocking Nduom, why not speak against the wickedness of some few people within the government and the bad governance?

If we all knew what the future held for us in the past, there are certain mistakes that we would have avoided. You think if Nduom knew Nana Addo’s government would have caused him this har
m, he would have done things that supposedly supported Nana Addo’s agenda? Nobody knows tomorrow, so we should all tread cautiously. Despite our political differences, we shouldn’t condone injustice, wickedness, and obvious abuse of power. We all deserve a fair hearing. If you can’t speak to support the plight of Nduom, don’t mock him or gloat, because it can happen to you too.

Change is the only constant thing in life. As human beings, we are all prone to change our minds at some point in time if deemed fit.

In any case, the Ghanaians who were employed by GN are the ones who were affected by the collapse of the company. Mocking Dr. Nduom only serves to rub salt into the wounds of the several Ghanaians who were rendered jobless.

Mocking Dr. Nduom also mocks the millions of dollars wasted to collapse his and other businesses, rather than using that same amount or less to prop them up.

#BringBackGNBank #PipiroScribes

Source: Ghana Web

Nigeria’s foreign exchange crisis has gotten so bad that even the monetary authority’s currency injections have not been able to reverse the value of the naira.

It was a fight for survival in the foreign exchange market where sustained demand for imports forced the Nigerian naira to descend for a kiss with the dragon, which caused the local currency to bleed.

The naira rate plunged further at the official market, closing at N1485.99 per US dollar due to weak supply side.

FX demand remained elevated across currency markets, causing exchange rates to weaken while the country grapple with US dollar challenge.

In the Nigerian autonomous foreign exchange market, the naira depreciated against the US dollar, trading at N1485.99 per dollar. This happened despite forex market intervention sales conducted by the Central Bank of Nigeria (CBN).

The apex bank resumed foreign currency sales to local deposit money banks as part of an effort to halt the naira from free falling. Unfortunately, the market swallowed FX inj
ections without having positive impacts on an already empty FX market belly.

Data from the Central Bank of Nigeria’s (CBN) foreign reserves ended the week at $32.69 billion, falling by about -0.12% from the previous week’s close of $32.73 billion.

The monetary authority has allowed the naira to trade more freely on a willing-buyer, willing-seller basis since June 2023 and has leaned towards inflation targeting instead of controlling the money supply.

The exchange rate depreciated at the parallel market, trading close at N1430 after the apex bank halted subsidised FX sales to Bureaux de Change.

In its latest circular, the CBN is asking currency traders in the informal FX market to re-register.

This suggests the apex bank has terminally stopped its $10,000 FX sales to BDCs. This explains why the local currency has seen market wide depreciation.

In April, the naira rose to unprecedented heights following the recent FX interventions of the CBN, specifically through the sale of FX to the BDC operators.

The
share capital of BDC operators was increased to N2 billion and N500 million for Tier 1 and Tier 2 licenses, respectively.

The CBN also revoke more than 4100 BDCs certificates for various regulatory breaches.

Source: Ghana Web

The Public Utilities Regulatory Commission (PURC) has set the revenue requirement for the second quarter at GHS6.81 billion.

This projection represents an increase of GHS1.14 billion over the first quarter’s revenue requirement for 2024, which was projected at a total revenue requirement of GHS5.67 billion.

The PURC also announced an increase in the cost of electricity and water tariffs starting from July 1 to September 30, 2024.

The Commission has announced a 3.45% increase in electricity tariffs for lifeline consumers (0-30kWh) and a 5.84% increase for all other residential consumers outside the lifeline category.

In a statement signed by its Executive Secretary, Dr. Ishmael Ackah, dated Friday, May 31, the Commission stated that it plans to recover GHS5.90 billion of the GHS6.81 billion required for the second quarter.

The statement read, “The total revenue requirement for the Electricity Supply Industry (ESI) for the first quarter of 2024 amounted to GHS5.67 billion. In the second quarter, the revenu
e requirement is projected to be GHS6.81 billion. This will result in an increase of GHS1.14 billion over the first quarter revenue requirement. The Commission, however, decided to recover GHS5.90 billion of the GHS6.81 billion required for the second quarter.”

“This decision was taken by the Commission, taking into consideration the revenue collection performance of the sector, since continuous increases in tariffs have not yielded the corresponding increase in revenue collection by the utilities to cover sector expenditure. In addition, the Commission considered the negative effect of passing on the entire revenue required in one tranche to customers. Thus, the difference of GHS906.21 million will be recovered in subsequent quarters,” it added.

Source: Ghana Web

The Toll Workers Association of Ghana has described the decision of NPP flagbearer, Dr. Mahamudu Bawumia to reintroduce the collection of road tolls as a political gimmick aimed at securing votes in the upcoming 2024 general elections.

General Secretary of the Toll Workers Association of Ghana, Edward Duncan, expressed doubts about the promise of the NPP flagbearer, Dr Mahamudu Bawumia.

“This thing that his excellency is telling us is just to get votes from us and our loved ones and sympathizers because we are about 800 workers, former toll booth workers. We have families, we have friends. We have people that we can influence, we have people that depend on us,” Edward Duncan said in a report on Citinewsroom.com.

Addressing citizen concerns about the poor condition of roads during a meeting with the clergy in the Volta Region at the start of his tour, Dr. Bawumia stated that government lacked the funds for infrastructure development and suggested that innovative methods such as road tolling could provide a
solution.

Dr. Bawumia further suggested that the government’s approach to road funding should be reconsidered and that the private sector could supplement revenue from road tolls to provide the needed relief.

In 2022, Ghana stopped road tolls collection to alleviate traffic congestion on major roads.

Source: Ghana Web

Africa is home to several stunning island nations, each offering unique landscapes, cultures, and attractions.

Here are five of the best island nations in Africa to visit in 2024:

Madagascar: Known for its incredible biodiversity, Madagascar is the fourth largest island in the world. It boasts diverse ecosystems, including rainforests, deserts, and beaches, as well as unique wildlife such as lemurs and chameleons.

Mauritius: Famous for its white sandy beaches, clear turquoise waters, and luxury resorts, Mauritius is a top destination for honeymooners and travelers seeking relaxation and water activities like snorkeling and diving.

Seychelles: Comprising 115 islands in the Indian Ocean, the Seychelles archipelago is renowned for its pristine beaches, lush forests, and granite rock formations. It’s a paradise for nature lovers, offering opportunities for hiking, birdwatching, and wildlife encounters.

Comoros: Located between Madagascar and the coast of Mozambique, the Comoros Islands are known for their vo
lcanic landscapes, aromatic spice plantations, and rich cultural heritage. Visitors can explore historic towns, relax on secluded beaches, and dive in crystal-clear waters.

Cape Verde: Situated off the coast of West Africa, Cape Verde consists of ten volcanic islands characterized by rugged terrain, colorful villages, and vibrant music and dance traditions. It’s a great destination for hiking, windsurfing, and experiencing local culture.

These island nations offer a perfect blend of natural beauty, cultural richness, and recreational activities, making them some of the best destinations to explore in Africa.

Source: Ghana Web