Category: Business

Kwamina Duker, Chief Executive Officer of Development Bank Ghana, has reiterated his outfit’s commitment to supporting and building bankable and competitive local businesses that can pit their strength against consumer alternatives coming mostly from foreign markets.

Mr. Duker was speaking at the 30th Annual Meeting of the African Export-Import Bank (Afreximbank) in Accra as a panellist during a plenary discussion with other distinguished industry captains, development experts and policymakers on the topic ‘Leveraging the Power of Intra-African Trade for Commodity Based Industrialisation’.

The panel discussions were a part of a series of sessions at the gathering, and sought to highlight the peculiar challenges that beset African economies when it comes to adding value to extracted raw materials before exporting them to foreign markets.

The discussions’ objective was to find ways of breaking the cycle of exporting unfinished goods and importing finished products – much to the detriment of the respective African economies; and also how to take control of Africa’s commodities and expand the value chain systems so as to be enabled in creating the necessary socio-economic development.

Addressing how small- to medium-size enterprises are being integrated into the industrialisation process, Mr. Duker indicated that for a very long time the focus has been on the extractive sector, and this has caused little investment into human capital; thus denying us any opportunity of moving up the value chain.

According to DBG’s Chief Executive Officer: “Moving up the value chain is critical but also complex; because once you move up from the extraction or out-grower phase, you come into the market forces phase – which you must be able to respect in order to thrive”.

He added that: “For us as a development bank, we are focused on changing the mind-sets of local businesses and making them bankable so they can be competitive on the global market”. He further explained that it is essential for businesses which have been able to move up the value chain to have a mindset to compete, especially due to alternatives consumers are presented with on the market. And to achieve this, such businesses must be bankable so as to overcome the market forces.”

In addition, Mr. Duker emphasised the importance of setting a “criteria for success” for local businesses, whereby businesses after a period of receiving support must be able to take-off and run by themselves in order to achieve sustainable prosperity.

According to him, this will be a measure of success for the investment placed into such businesses.

Other panellists for the session on ‘Leveraging the Power of Intra-African Trade for Commodity Based Industrialisation’ were Professor Théophile T. Azomahou, Executive Director-Africa Economic Research Consortium; Dr. Carlos Lopez, a Professor at the University of Cape Town; Ms. Florie Liser, President and CEO-Corporate Council on Africa; Ms. Ahunna Eziakonwa, UNDP Assistant Administrator and Regional Director for Africa; Mr. Antonio Pedro, Acting Secretary, United Nations Economic Commission for Africa; and Mrs. Kanayo Awani, Executive Vice President, Intra-Africa Trade-Afreximbank.

The African Export-Import Bank (Afreximbank) is a pan-African multilateral financial institution mandated to finance and promote intra-and extra-African trade. Afreximbank deploys innovative structures to deliver financing solutions that support the transformation of Africa’s trade structure and accelerate industrialisation and intra-regional trade, thereby boosting economic expansion in Africa.

DBG is a Development Finance Institution established by the government of Ghana in accordance with the Development Finance Act, 2020. DBG acts as an enabler for businesses in Ghana and as a long-term capital provider in the market.

DBG’s mission is to foster strong partnerships to finance economic growth, create jobs and build capacity for SMEs; and to provide long-term financing and de-risking services underpinned by technology and evidence-based research/insights. DBG aims to promote Environment, Social and Governance (ESG) excellence within businesses the bank supports. The bank has received funds from the World Bank, European Investment Bank, Kreditanstalt Für Wiederaufbau (KfW) and the African Development Bank.

Source: Ghana Web

The Tema Circuit Court B has sentenced three businessmen, who conspired to commit a crime and stealing to 10 years imprisonment each with hard labour.

The court presided over by Ms. Bertha Aniagyei sentenced Ben Ograh, Carl Kumodzi, and Solomon Nana Yaw Amoako, based on their guilty plea to 10 years on both counts to run concurrently.

Assistant Superintendent of Police (ASP) Mrs. Stella Odame, prosecuting, said Complainant Beatrice Ampofo is a shipper working at CMA CGM Ghana, a shipping Company located at Meridian Area in Tema.

Ben Ograh, 35, is a businessman and a Forklift Operator residing at Adenta in Accra.

ASP Odame said Carl Kumodzi, aged 27 years old, is a clearing Agent staying in Oyibi, and Solomon Nana Yaw Amoako, 35 years old, is an electrician residing in Nungua. Kumodzi and Amoako are friends.

He recounted that on January 23, 2019, Kumodzi called John Mensah a witness in the case, and told him that his client needed containers to export cashew nuts to Shanghai, China.

ASP said on February 4, 2019, Mensah contacted CMA CGM Ghana, a shipping Company based in Tema, and collected 14 containers from the complainant.

Mensah loaded all the containers on trucks and deposited them in a warehouse at Spintex for the loading of cashew nuts for export.

The prosecution said Ograh and Kumodzi on receipt of the containers, called Amoako, whom they planned with, and they all reloaded the 14 containers on trucks and deposited them in a warehouse at Spintex for the loading of cashew nuts for export.

The prosecution said Ograh and Kumodzi, on receipt of the containers, called Amoako, whom they planned with, and they all reloaded the 14 containers on different trucks.

The Prosecution said they discharged the containers at Adenta, Madina, and Pantang Hospital Area, all suburbs of Accra, and sold them without loading any cashew nuts for export, as claimed by the accused persons, and thereafter went into hiding.

On March 23, 2019, a complaint was lodged at the Tema Regional Criminal Investigation Department. During the investigation, Ograh, Kumodzi, and Amoako were arrested at their hideouts at Adenta, Oyibi, and Community 5 in Tema.

ASP Odame said they led Police to Abokobi, Ashaiman, Adenta, Community 11, and Afienya, where five stolen containers were retrieved. Further investigation revealed that there was no warehouse stocked with cashew nuts at Spintex.

The Prosecution said Ograh, who claimed to be the exporter of cashew nuts, did not deal in cashew at all, but only used the means to dishonestly appropriate the containers; the cost of one container is Ghc9,918.00, and the total value of the fourteen containers is Ghc138,843.69.

The value of the nine containers yet to be recovered is GHC 89,258.00. Investigations are ongoing to get their accomplices, Yaw and KK, who are on the run, arrested.

Meanwhile Ogarh, Kumodzi, and Amoako are assisting the police in recovering the remaining nine containers from Kumasi and other places in Ghana.

Source: Ghana Web

The Treasury successfully issued new short-term debts amounting to GH¢13.64billion in first-half 2023 (H1 2023), while GH¢30.55billion was utilised to refinance maturing debts.

More importantly, it exceeded its financing target for H1 2023 by approximately GH¢12.39billion – resulting in a total issuance of GH¢44.19 billion during the period, out of the GH¢47.30billion tendered by investors.

The Treasury adopted a frontloading strategy for its issuance requirement in H1, primarily in the money market. This approach was driven by limited investment options available to investors, particularly in Q1. Consequently, there was higher demand for short-term securities during this period.

Analysis by the BandFT found that the demand for T-bills experienced a significant surge in Q1 2023. This was primarily due to attractive yield levels and persistent market uncertainties that prompted investors to seek secure investment opportunities. However, it is worth noting that demand for T-bills eased in Q2.

Specifically during Q1 2023, the Treasury accepted and issued approximately GH¢36.41billion across the 91-day to 364-day bills. This was derived from a total investor bid of GH¢39.46billion, surpassing the target size of GH¢28.16billion. However, in Q, the issuance decreased to GH¢32.33billion from investors’ tender of GH¢32.39billion. Despite being slightly lower, this amount still exceeded the target size of GH¢32.11billion.

It is worth observing that the Treasury’s ability to surpass its financing target – issuing new debts and refinancing maturing debts – reflects investor confidence in the country’s economic prospects and the attractiveness of short-term securities. However, it is crucial to continue monitoring market conditions and the investment landscape to assess potential implications of future debt issuances.

The Treasury may need to adapt its strategy accordingly to ensure continued success in financing government’s operations while maintaining stability on the financial market.

Easing Treasury-bill demand

Nonetheless, in a concerning trend the demand for Treasury-bills on the primary market has continued to decline for the second consecutive month this year. The reduced momentum in investors’ demand for 91-to 364-day bills raises legitimate concerns about the Treasury’s ability to meet its debt obligations going forward, particularly amid tighter liquidity conditions in the market.

During May 2023, investors tendered GH¢14.04billion for the 91- to 364-day bills, resulting in a 4.2 percent under-subscription compared to the Treasury’s target of GH¢14.66billion. Despite falling short of the target, the Treasury was still able to issue the amount tendered. Similarly, in June 2023 investors tendered GH¢10.51billion for the 91- to 364-day bills – reflecting a 1.79 percent under-subscription, which although insignificant deviated from the Treasury’s target of GH¢10.70billion.

The market believes that lingering effects from the domestic debt exchange programme have played a significant role in stifling demand for Treasury-bills. The programme’s impact seems to be lingering longer than expected, affecting investor sentiment and reducing the attractiveness of Treasury-bills.

May 2023 stood out as the month with the highest targetted issuance by the Treasury, aiming to reach GH¢14.66billion in issuance compared to GH¢8.1billion, GH¢8.78billion, GH¢11.19billion, GH¢6.75billion and GH¢10.70billion for January to April and June, respectively. However, it is evident that the market conditions and investor sentiment did not align with those ambitious targets.

It is essential to emphasise the potential implications of this trend if it continues. The Treasury’s ability to meet its debt obligations relies heavily on investor demand for Treasury-bills. The recent decline in demand signals a need for the Treasury to reassess its debt management strategies and consider measures to stimulate investor interest.

Moreover, tighter liquidity conditions in the market could pose challenges for the Treasury in raising necessary funds through debt issuances. It will be crucial to closely monitor the market’s dynamics, including liquidity levels, investor sentiment and the effectiveness of debt management measures, to gauge the Treasury’s ability to navigate these challenges.

Yields’ uptrend sustained

Yields on Treasury-bills resumed an upward trend throughout Q2, presenting a significant risk to government’s debt sustainability. This follows the Treasury’s implementation of cost-cutting measures in Q1-2023 to address escalating Treasury yields, reducing bids and capitalising on strong demand for bills to lower the cost of borrowing. These efforts resulted in a significant drop in yields during that period.

To provide more context, in Q1-2023 the yield on the 91-day bill decreased from 35.36 percent in Q4-2022 to 19.39 percent. The yield on the 182-day bill declined from 35.98 percent to 21.44 percent, and the yield on the 364-day bill fell from 35.89 percent to 25.66 percent. These decreases in yields were encouraging and reflected the Treasury’s successful attempt to manage borrowing costs.

However, the Treasury failed to sustain this momentum as yields resumed an upward trend in Q2-2023. Yields on Treasury-bill auctions experienced marginal increases as anticipated: the 91-day bill rose by 410 basis points (bps) to 22.97 percent while the 182-day bill increased by 400 bps to 25.44 percent from 21.44 percent. The 364-day bill also jumped, by 359 bps to 29.25 percent from 25.66 percent.

These rising borrowing costs for government due to higher yields on Treasury-bills add a further strain to an already burdened fiscal position. As the cost of government borrowing increases, it becomes increasingly challenging to manage the existing debt burden and fulfil future financial commitments.

Outlook

Market expectations suggest that yields on Treasury-bills will continue to fluctuate in the near-term, with potential for further increases.

However, it is crucial to note that the real return on Treasury-bills will remain negative until inflation returns to a single-digit figure or drops below 20 percent. The projected range for Treasury yields in the near-term is around 20 percent to 25 percent.

Despite initial anticipation of a significant drop in yields to a range of 15 percent to 18 percent by end of Q3-2023, the current trend suggests a persistent rise in yields even amid the secured IMF bailout. This poses additional challenges for government’s financial management and debt sustainability.

In light of these developments, it becomes crucial for government to reassess its debt management strategies and explore measures to address the rising borrowing costs. It may be necessary to implement policies that attract investors, enhance fiscal discipline and promote economic growth to alleviate the strain on government’s financial position.

Source: Ghana Web

Sea level rise, a consequential global phenomenon linked to climate change, is inflicting significant harm on the coastal communities of Ghana.

The adverse effects include heightened coastal erosion, resulting in the loss of livelihoods, settlements, and property for numerous individuals.

Residents surrounding Panbros, Glefe and Gbegbeyise communities along the Dansoman Coastline are among the many experiencing the harsh effects of sea erosion caused by climate change.

GhanaWeb’s Elliot Nuertey’s interactions with some residents mentioned in the areas indicated that, over 100 homes have been destroyed, schools, churches and, six hotel and beach resorts had to close down due to sea erosion.

Nii Commey, a former professional footballer and the owner of the Overmas 1 Beach resort, is one of the residents, whose business has suffered.

He disclosed to GhanaWeb how he spent over GHS 600,000 on relocating and renovating his resort due to sea erosion caused by climate change.

“I have spent GHS600,000 on this resort. It even exceeds that amount. I bought stones. I brought excavators, pill loaders ,I have bought lots of things, I brought lots of machine to help salvage the situation. I have videos there,” Nii Commey lamented.

He added, “about five kilometres away used to be a sitting lounge and play ground for visitors who came here. They played football and danced to music, but today the sea has taken over.”

Nii Commey used to play for Mighty Jet, Gamba All Blacks and another Russian team.

His case isn’t different from Reuben Akakpo, one of the residents who are in constant fear for their lives and property, after relocating three times, Reuben Akakpo has been rendered homeless by the sea.

“This used to be my home (pointing to the foundation of a collapsed building), and that also was someone’s house too. The water has broken it all down. The sea conquer everything. Now just a lane of houses separate the sea from the main road right behind us,” Reuben Akakpo explained the dire effects of sea erosion on coastal dwellers along the Dansoman coastline.

This report is produced in fulfilment of the UNESCO and CIJ London Climate Change in News Media project facilitated by the Centre for Journalism Innovation and Development.

Source: Ghana Web

In a letter that the late former President of Ghana, Flt Lt. Jerry John Rawlings, wrote to the Chief Executive Officer of the McDan Group, Dr. Daniel McKorley, the late statesman described the businessman as someone who is still yet to reach the highest heights of his success journey.

According to JJ Rawlings, who said that he related with McDan as an in-law, he was more than convinced that the celebrated Ghanaian businessman still had a lot to achieve as a businessman.

This was contained in a book by the McDan boss, titled ‘The Path of an Eagle: Despair, Hope and Glory,’ under the section, Letters from Friends.

JJ Rawlings started his letter by first stating that instead of friend, he rather relates with him as a son.

“When Daniel requested a short statement as a good friend in his memoire, I said to him, Chief, you are not my friend. You are my son. You will recall how I constantly told you stories about the life of Capt. Timothy Huppernbauer, your father-in-law; He was such an amiable person whose character endeared him to many officers and men of the Ghana Armed Forces, so much so that, his firm grips of situations and particularly, the respect he enjoyed among the ranks helped stall the carnage that could have attended the 1979 revolt.

“He was a nice gentleman and an excellent example for the young soldiers to look up to. That was why I never hesitated to whisper to you to name a project after him because such act from you will not only honor his legacy and what he stood for, but go a long way to equally reemphasize your strong character, value system and lessons you have learnt from men of steel and virtue,” the former president wrote.

He further stated in his letter to McDan that although he was turning 50 at the time (2021), he did not consider that the businessman had reached the apex of success.

He believed that McDan was still yet to reach the stage where he could state that he was successful.

“When Dan told me that he was writing his autobiography in commemoration of his 50th birthday, I thought to myself how much he has achieved in his youthful life especially his passion for social responsibility.

“For a self-made man, whose humble beginnings tell a tale of pain, hope and glory, Daniel’s life sums up what is possible within the difficult circumstances of our continent, for young men and women who dare to dream but lack the opportunities, freedom and justice to launch-out and unlock their potentials. His is a story that needs to be retold a thousand-fold and be inscribed in the pages of the books on entrepreneurship and business. I always tell him to remain humble with a high sense of integrity. It takes integrity to remain at the top not the money.

“Clearly Daniel hasn’t reached the pinnacle of his success yet. The African space still lies in wait to be conquered and it is important we empower our younger generations like Dan with the requisite capacity and resolve to change the plight of the continent for our people,” he added.

Source: Ghana Web

The Ghana Export Promotion Authority (GEPA), has opened a three-day business expo as part of activities marking the 2023 Bakatue Festival of the chiefs and people of Elmina in the Central Region.

The expo, hosting businesses, entrepreneurs, and artisans mainly from the region, sought to expose the business potential of the region to the world and further its agenda to become a major exporter in the country.

Held on the theme: ‘Growing the Export Business in the Central Region,’ the expo also offered a platform for knowledge sharing, business networking and a learning opportunity for prospective exporters.

Indeed, the region is boundlessly endowed with resources such as the sea, beaches, exciting fishing villages, historical towns and natural attractions, minerals, forests, forts and castles, and prominent schools, making it the ideal investment and tourism hub.

GEPA, therefore, sees it as an important zone for the development of export, hence the Authority’s continuous active support for the region’s development agenda.

To further strengthen the region’s position as a viable business hub, the exhibitors at the expo demonstrated creativity, innovation, and ingenuity in entrepreneurship through their various products and services on display.

The products, cutting across all sectors, included foods such as coconut flakes, attractively packaged gari, dried fish, and cereals, canned natural spices, fufu flour, bread, shito and cooking oil.

With fashion, there were various men and women outfits made from authentic African prints as well as accessories including clay beads, hand-woven transparent cotton bags, bead bags and slippers.

Enthusiasts of skin care products were also not left out as the exhibitors served them with indigenous cosmetics and assorted medicated products including soaps, hair foods, and oils.

Dr Afua Asabea Asare, the CEO of GEPA, indicated that the expo was a testament to their commitment to the development of non-traditional export in the region, pledging that it would be an annual event.

She pointed out that GEPA had undertaken significant export development interventions in the region including the development of the pineapple value chain, vegetable production and capacity building programmes for businesses.

GEPA’s recent flagship intervention, the Youth in Export programme, had also benefitted some youth in the region, she added.

Expressing admiration for the region’s wealth in resources and the potential it possessed, Dr Asabea found it unacceptable that the region was considered one of the most deprived in Ghana, lacking job opportunities and economic livelihoods.

‘GEPA sees this as a challenge and a call to action to ensure that export-oriented opportunities are created for the benefit of the teeming youth in Komenda, Elmina and other parts of the region,’ she underscored.

‘The expo is one of the several enablers deployed by GEPA to expose the potential of SMEs producing products that can be improved and promoted locally and globally,’ she added.

The GEPA CEO reiterated the Authority’s commitment to driving the continuous development of made-in-Ghana products and services and the competitiveness of the local SME.

She urged all businesses to take full advantage of GEPA’s regional office in Cape Coast and called on all stakeholders to collaborate with the Authority to transform Elmina and the Central region at large.

Mrs Justina Marigold Assan, the Central Regional Minister, commended GEPA for its continuous support for the region.

She implored all stakeholders to unite and collaborate in all endeavours, noting that they could achieve more together than they could as individuals.

In her view, the ingenuity showcased by the exhibitors was a demonstration of the region’s potential to adapt and compete on the global level.

That notwithstanding, she cautioned that it would be suicidal to compromise innovation and diversity in the age of globalisation where everybody was a competitor.

Mrs Assan appealed to businesses to embrace eco-friendly approaches to protect the environment for the now and future.

For his part, Nana Kwadwo Conduah VI, the Omanhen of Elmina, urged all Ghanaians to eschew the scramble over foreign products and patronise made-in-Ghana products to strengthen the economy.

He pointed to how the Chinese and the Indians, for instance, proudly patronised their own products, a behaviour which had given them a relatively stronger currency.

‘But in Ghana, we dislike our own products and run after foreign foods and products. Let us patronise made in Ghana products to have a stable currency,’ he said.

‘For me, my favourite food is etsew and fried fish, and plantain and tilapia; that is the healthy food and not fried rice and chicken,’ he added.

The Bakatue is the major festival of the chiefs and people of Elmina, who offer prayers and appreciation to the gods for a good fishing year.

Earlier on Tuesday, hundreds of enthusiastic indigenes, visitors, and revellers converged on the bank of the Benya Lagoon to witness the rituals to lift the ban on fishing from the lagoon, Bakatue.

The ban on fishing from the lagoon was placed by the traditional authorities of the ancient town exactly a month ago in line with tradition to allow the fishes to replenish its stock.

This year’s festival is on the theme: ‘Buy made in Ghana goods and use made in Ghana products and support Ghanaian industries and create employment for the youth.’

Source: Ghana News Agency

What can I tell you about the Ghanaian plight with the abuse of prosecutorial powers, oh wait a minute, that’s at the office of special prosecutor (OSP) and Kissi Agyebeng flippantly engaging in ultra vires. Hey dude, you have no jurisdiction to prosecute anyone in the case already tried in the UK court. OSP must stop subjecting dignified Ghanaians to public obloquy and opprobrium.

Hey, let me quote what Brett Pascal described how her son was being bullied at

school and how she confronted the bully in her book, What Grown-Ups Do, “I know what you did, I say bringing her hand up and jabbing two fingers in his direction like as hex sigh as she warns him ominously, I am watching you.” The OSP must not be used as the trojan horse to incumbency abuse.

Per my novice commonsensical analysis, the creation of OSP was very unnecessary. History bears unfavorable testimony to independent offices like OSP.

Morrison V. Olson (1988). Amid the Watergate Scandal, US Congress adopted the independent counsel statute. The statute established an independent counsel appointed by a special court and he could be axed from office only for a good cause, to investigate alleged ethical violations by high-profile government officials.

The government attorney, Theodore Olson, who was being investigated by the

independent counsel argued that the statute creating the independent counsel was a rebuke to separation of powers. The court, however, held that the law and its protections of the independent counsel from removal did not violate the separation of powers.

I believe the Act that established the OSP unduly trammels the fundamental human rights shrouded in the Puritan egalitarian ideals and enshrined in the 1992 constitution. Is the conduct of a criminal prosecution (and of an investigation to decide whether to prosecute the exercise of purely executive power under the behest of the Ghana Police Service (GPS) and the appendage agencies like

EOCO and C.I.D.? Is the purpose of OSP to relegate political opponents to public derision?

In an economy, almost invariably heading to a tailspin, what is the usefulness of OSP? Attorney General already has prosecutorial powers. An economist, Thomas Sowell, observed that “If you give the government enough power to create social justice; you have given it enough power to create despotism”.

Millions of people around the world have paid with their lives for overlooking that simple fact. “The OSP could easily be used by any President to terrorize political opponents. OSP is a rebuke to the doctrine of separation of powers”.

Ghana must scrap OSP and channel the funds to resource GPS. OSP could also be

used to whitewash serious political crimes. The thoroughgoing growing powers of the executive must be a source of consternation to well-meaning Ghanaians. OSP is a duplication of the functions of EOCO, C.I.D, and CHRAJ. Leave Mahama Alone! God bless our homeland Ghana.

Source: Ghana Web

The Minister for Food and Agriculture, Bryan Acheampong, has revealed that the government will start payments of debts owed to Food Suppliers by July 17, 2023.

The Food Suppliers have been picketing the National Food Buffer Stock Company (NAFCO) since July 7, 2023, to demand payment of GH¢278 million owed them for supplying food to schools under the Free SHS programme.

According to the minister, payments have already commenced.

“Luckily, there has been a reconciliation and payment is being processed for them and it will be paid to them starting July 17. I can assure you that from July 17, those who have supplied and have been cleared will be paid their money,” he was quoted by citinewsroom.com.

He added that the commencement of the payments is not because of the protest.

“There was no need to have the protest for these people to be paid from July 17, they are not being paid because they have protested because we had the timelines on when they were going to receive the money and the protest has only forced us to come out to tell them the date for the payment and so I told them today that it was not because of the protest that they were being paid,” he added.

Source: Ghana Web