Category: Business

Deputy Director of Communications for the governing New Patriotic Party (NPP), Ernest Owusu Bempah, in October 2022 entreated Ghanaians to trust in the Akufo-Addo led government as they have a track record of stabilizing the local currency – Cedi.

‘Ghanaians should have confidence in President Nana Addo Dankwa Akufo-Addo and the New Patriotic Party (NPP) to restore the Cedi because we have done it before in the past,” he said.

Read the full story originally published on October 25, 2022 by www.ghanaweb.com.

Deputy Director of Communications for the governing New Patriotic Party (NPP), Ernest Owusu Bempah, has called on Ghanaians to have confidence in the Akufo-Addo-led government to restore the broken economy.

To buttress his claim, he said government has a track record of developing the economy and stabilizing the local currency – cedi.

According to 3news report, Owusu Bempah in a statement said the Ghanaian economy was thriving until the outbreak of the global pandemic – coronavirus – and the ongoing R
ussia-Ukraine war.

He said, ‘Ghanaians should have confidence in President Nana Addo Dankwa Akufo-Addo and the New Patriotic Party (NPP) to restore the Cedi because we have done it before in the past.”

‘The NPP is the only party that has the track record of developing the economy and strengthening the Cedi. The economy was doing well prior to Covid and the Russia-Ukraine war,’ Owusu Bempah said.

Meanwhile, Information Minister, Kojo Oppong-Nkrumah has said government is working to stabilize the cedi.

He noted that the Governor of Bank of Ghana, Dr. Ernest Addison, will meet all CEOs of commercial banks and forex bureaus to address the issue on Tuesday, October 25, 2022.

The cedi currently sells at about GHS15 to the dollar at various forex bureaus.

Source: Ghana Web

Mr. Abraham Dwuma Odoom, an Agribusiness expert, has called on Ghanaian youth to prioritize agriculture and see it as a lucrative business venture, which has the potential to transform their lives.

He said it was important for the youth to take advantage of the agricultural initiatives and economic enclaves which were being created by government and other private firms, to amass wealth for themselves without having to start farming from scratch.

Mr. Odoom who was speaking at the Youth in Agribusiness Festival 2024 in Kumasi, said some of these initiatives already had factors of production for farming such as land, access to water, ultra-modern implements, planting materials and others, which often posed challenges to the youth who want to start farming.

With some of these things already in place, what was needed was for interested people to sign on to these policy initiatives to have access to these factors to start their businesses.

The two-day programme, which was held under the theme ‘Agribusiness Mode
rnisation: Tool for Sustainable Youth Employment in Ghana,’ was organised by the John A. Kufuor Foundation.

Mr. Oddom said if most Ghanaians were to go into modern agriculture, there would be a stable economy and reduction in the over-reliance on imported goods into the country.

He used the occasion to call for consensus on the unrestrained way of using pesticides in farms in Ghana, adding that, that over-usages of pesticides were dangerous to one’s health and there was need for deliberate efforts to control it.

Mr. Kwasi Nyamekye, Ashanti Regional Chairman of the Association of Ghana Industries (AGI), expressed worry at the increasing rate at which Ghanaians had developed taste for foreign products.

Citing the poultry industry alone, he said it was an avenue that employed a lot of people, but indigenes were not patronising the local poultry products, giving excuses that the products were very expensive.

Professor Baffour Agyeman-Duah, Chief Executive Officer of the John A. Kufuor Foundation, said the ra
tionale for the programme was to prioritise the creation of platforms for Ghanaian youth to embrace the vast opportunities in the agricultural sector.

He said Ghana’s agricultural sector had largely been dominated by the elderly who were steadily leaving the working arenas and it was high time the youth took up such roles and responsibilities to drive Ghana’s socio-economic agenda.

Prof. Agyeman-Duah said with the existence of modern technologies in farming, it had become imperative that the youth embraced such opportunities to reduce unemployment in the country.

Source: Ghana News Agency

Country Managing Partner at Deloitte Ghana, Daniel Kwadwo Owusu, has called for increased efforts to sustain long-term macroeconomic stability. He stressed that stability is vital for planning and forecasting crucial elements in constructing a robust and dynamic economy. This endeavour aims to create jobs and accelerate poverty reduction.

His comment followed the International Monetary Fund’s prediction of improving economic outlook for Sub-Saharan Africa, including Ghana. Mr. Owusu noted that despite positive growth projections, achieving long-term macroeconomic stability remains paramount.

‘Indeed, the International Monetary Fund has assured us that the economic outlook for Sub-Saharan Africa, including Ghana, is gradually improving, indicating that growth will rise from 3.4 percent in 2023 to 3.8 percent in 2024. For us, it is welcome news as inflation and other macroeconomic indicators are expected to improve this year.

‘However, we need to do more as a country to achieve long-term macroeconomic stabil
ity. Long-term macroeconomic stability is very critical for planning, forecasting and overall building a strong and vibrant economy that not only creates jobs but also boosts the per capita income of the people and accelerates poverty reduction,’ he reiterated.

He made these remarks during the launch of the 8th Ghana CEO Summit in Accra. The summit, themed ‘Reigniting Business and Economic Growth: Charting a Path Forward’, is scheduled to take place on May 27, 2024.

Embracing AI

Mr. Owusu emphasised the transformative power of artificial intelligence (AI) in reshaping society and business operations, noting that rather than fearing redundancy, AI should be viewed as an opportunity to enhance efficiency and innovation.

‘If you ask me, the next biggest thing that is changing everything we do is AI. As a country and as a business, we need to find out how we can utilise this knowledge, how we can make use of it to bring advantage to the business that we do. And for us, this is the most important change that i
s coming into our society – the fourth revolution that we are talking about; and everyone will have to take advantage of it for the business and for what we do. The summit could not have come at any better time than now as we strive to build hope and confidence in Ghana’s economy,’ he stated.

He assured that as a knowledge partner, his outfit will collaborate with industry leaders and policy-makers to foster a robust, inclusive and sustainable future in line with the summit’s objectives.

He added that their expertise will be instrumental in advancing the summit’s theme, especially in areas like economic diversification and artificial intelligence transformation.

‘At Deloitte, it is all about making an impact that matters, setting high standards of excellence and achieving them and helping our clients realise their ambitions. We also create connections with our clients, the communities and the leaders far and wide to make an impact that matters most, a reason we see the Ghana CEO Summit as an important tool
to share our projects and programmes with a wider and larger audience,’ he stated.

Deloitte recently launched its predictions for the Technology, Media and Telecom sectors in 2024, focusing on four pillars: Generative Artificial Intelligence, Sustainability, Media, Entertainment and Sports, as well as Technology and Telecom.

Source: Ghana Web

The Social Security and National Insurance Trust (SSNIT) says the unfavourable findings in the International Labour Organisation (ILO) 2020 actuarial valuation reports were based on assumptions that are yet to occur.

It has therefore urged its stakeholders not to treat the 2020 findings and projections of the report in isolation from the previous external actuarial valuation reports that had made similar findings.

‘In 2011, the report says among other things that if contribution rates were not increased in the future, the annual expenditure on benefit and administration would exceed income from contributions and the funds from 2019 onwards.

‘By 2019, we were not going to have enough money to pay benefits. Ladies and gentlemen, we are in 2024 and we have never defaulted on payment of benefit from 2019 up to date,’ said Mr. Joseph Poku, Chief Actuary, SSNIT.

He was speaking at a press briefing to address concerns raised on findings in the 2020 ILO valuation reports that among other things predicted that by
2036 the reserve of SSNIT would reach zero.

He noted that such predictions were common as had been the case in 2014 and 2017.

In 2014 for instance, he said the valuation report projected annual expenditures would exceed total income (contributions, investment income and other income) in 2035 and reserve reaching zero by 2042.

‘The 2017 valuation report projected that total income (contributions, investment income and other income) will no longer be sufficient to pay for annual expenditures in 2032. During the year 2038, the reserve drops to zero when no measure is taken,’ he said.

The Chief Actuary explained that the essence of the external valuations reports was to guide sponsors and administrators of the scheme to take necessary actions and recommendations based on the findings of the report.

He also said that SSNIT was required by law to obtain external actuarial valuation on the scheme at least once every 3 years in accordance with section Act 766, Section 53(1).

To avert the unfavourable prediction
s made in the reports over the years, Mr Poku said SSNIT had embarked on initiatives to among other things increase contributions and contributors for the scheme.

These initiatives included deactivation of ‘Ghost’ Pensioners from the pension payroll leading to the saving of GH?519 million; introduction of mass prosecutions as a strategy to reduce contributions in arrears and the introduction of mass registration, inspection, and contributions collection exercise to increase membership of the scheme and improve contributions collection.

He assured stakeholders that the Scheme would be able to pay pensions and meet its financial obligations beyond 2036.

‘Contributions of members are safe with the Trust. The Trust has not defaulted and will not default in paying benefits when they are due,’ he said.

Source: Ghana News Agency

Former Attorney-General, Betty Mould-Iddrisu, said she was astonished when the International Labour Organisation (ILO) reported that the reserves of Social Security and National Insurance Trust (SSNIT) would be depleted by 2036.

She stated that retirees depend on their pensions; therefore, if the Trust runs out of funds, the situation may turn chaotic.

Speaking on TV3’s Hot Issues and monitored by GhanaWeb, Betty Mould-Iddrisu said, “I was shocked to see again that they were saying that in 2036, there might be no money left in SSNIT despite all of the investments they made, there might be no money left in SSNIT to pay pensions. There might be no reserves left.”

“It is shocking to me not because I am a woman. I think it is shocking to anybody, any youth who is just starting to work now and will get their pension in 2036…People depend on their pensions…” she stated.

A report by the International Labour Organisation (ILO) indicated that SSNIT cannot pay benefits by 2036 due to depleting reserves.

The re
port added that the total income including contributions, investment income and other income, will no longer be sufficient to pay for annual expenditures including benefit payments to pensioners by 2036.

However, SSNIT in a statement said it has never missed any pension payment period since 1991 when the scheme was introduced.

Source: Ghana Web

Mr Seth Terkper, a former Minister of Finance, has urged African governments to strive to make their debts sustainable to attract development finance assistance.

‘Africa must do something about its debt, otherwise, we might be shut out of development finance,’ Mr Terkper who led Ghana’s 16th International Monetary Fund (IMF) loan-support programme, said.

Mr Terkper, also the Executive Director of Public Financial Management (PFM) Tax Africa Network – a consulting firm, was engaging journalists virtually on the back of the just ended International Monetary Fund/World Bank Group (WBG) annual meetings in Washington, US.

He explained that because many African countries have reached lower and middle-income status, it could no longer rely on grants and concessional financing for sustainable development and poverty alleviation.

As such, development finance would be supportive going forward, hence, the need for African governments to assiduously work towards resolving their debt burden.

In its April 2024 Regiona
l Economic Outlook for Sub-Saharan Africa, the IMF observed that after four turbulent years, the region has seen some gradual improvement.

The region’s growth is projected to rise from 3.4 per cent in 2023 to 3.8 per cent in 2024, but the report noted that ‘not all is favourable,’ as the funding squeeze persisted.

The report indicated that governments in the region continued to grapple with financing shortages, high borrowing costs, and impending debt repayments, which ought to be dealt with.

‘Amid these challenges, sub-Saharan African countries will need additional support from the international community to develop a more inclusive, sustainable, and prosperous future,’ the report noted.

Regarding policies policy priorities, Mr Abebe Aemro Selassie, African Department, IMF, said it was important for African governments to continue to improve public finances, with an emphasis on domestic revenue mobilisation.

He was speaking on the release of the April IMF Regional Economic Outlook for Sub-Saharan Africa
, last week.

He also encouraged a sustained focus on inflation reduction, while implementing reforms to enhance skill development, spur innovation, improve the business environment, and promote trade integration to secure more affordable and stable financing.

Source: Ghana News Agency

Governor of the Central Bank, Dr. Ernest Addison, has lauded the invaluable contribution of the National Banking College (NBC) to the growth of the financial sector by offering training of human resources.

The NBC was first established on April 9, 1994, by the Bank of Ghana under the governorship of the late Dr. Godfred Agama, with support from the Ministry of Finance.

It was set up as an autonomous, non-profit-making institution, tasked with developing training programs for bankers at the professional and managerial levels.

Over the years, the college has churned out thousands of banking and non-banking professionals in the country.

In a speech read on behalf of the BoG Governor at the 30th anniversary celebration of the NBC held on April 26, 2024 the first deputy BoG governor, Dr. Maxwell Opoku-Afari, commended the college for adopting best practices.

He also commended the stakeholders and staff for their unwavering support to the college since its establishment.

‘The governing council, together with
the various management teams, has selflessly managed affairs at the college in line with best practices and ensured its continued growth and relevance in the industry,’ Dr. Opoku-Afari said.

He stressed that despite the various challenging times within the economy, regional, and global transformations, the NBC has ensured that it has become more impactful, stronger, and resilient.

‘More recently, issues that emerged from the banking sector clean-up exercise necessitated a review of NBC’s strategies to actualize its vision of becoming a world-class institution, delivering effective training in banking and finance, and thus playing a leading role in the capacity building of employees in the financial sector,’ Opoku-Afari added.

The BoG Governor further encouraged the NBC to leverage on technology, and research resources to enhance its appeal as an excellent world-class learning environment that fosters growth, innovation, and success.

Source: Ghana Web

The Chamber of Bulk Oil Distributors (CBOD) has vehemently opposed the government’s proposal to appoint the Bulk Energy Storage and Transportation Company (BEST) as the exclusive off-taker of Sentuo Oil Refinery Limited’s output under the gold for oil programme (G4O).

The proposal, government claims, is aimed at controlling the exchange rate by indirectly channeling Sentuo Oil Refinery’s cedi liquidity through BEST to manage USD allocations under the G4O programme.

It has, however, has been met with skepticism by industry stakeholders, with CBOD insisting that the proposed policy contradicts the deregulation policy governing the petroleum downstream sector. ‘We object to this proposal and respectfully appeal to the Head of the Economic Management Team (EMT), Vice President, Dr. Alhaji Mahamadu Bawumia, to review this proposal,’ a statement issued by CBOD read.

‘Providing the needed USD liquidity under the G4O programme can still be achieved without necessarily anchoring the entire output of Sentuo Oil Refi
nery Limited (SORL) with BEST, formerly known as Bulk Oil Storage and Transportation Company (BOST),’ the statement argued.

Furthermore, the chamber contends that the government’s plan risks creating market challenges and deficiencies that could hinder the growth of the downstream sector in the medium to long-term. It added that by sidelining Bulk Oil Import, Distribution, and Export Companies (BIDECs), the government risks stifling private sector involvement and creating a monopolistic market detrimental to consumers.

‘The G4O programme has nearly given 50 percent control of the market to BEST whereas Sentuo production accounts for 20 percent of the market needs. Having a single player control such a monumental share of the market will rob the market of the benefits of the efficiency, lower prices and growing local market expertise that the deregulation policy has occasioned,’ CBOD stated.

Instead, CBOD urged the government to establish a framework that fosters fair market practices, transparency and acti
ve participation from all stakeholders.

The statement also emphasized the contributions of BIDECs to national development, including ensuring energy sufficiency during critical moments and investing in storage infrastructure. The statement concluded by reaffirming the Chamber’s commitment to working with the government to develop a workable G4O framework that promotes innovation, sustainability and efficiency within the downstream petroleum sector.

Source: Ghana Web