Category: Business

Professor Lord Mensah, a senior lecturer at the University of Ghana Business School (UGBS), has criticized the government’s handling of the economy.

The UG lecturer in his critique highlighted the Cedi’s recent struggles against the US dollar.

Prof. Mensah took to X formally known as Twitter on May 14, 2024, to express his concerns about the country’s economic trajectory.

He noted that the Cedi’s depreciation directly responds to underlying economic issues that the government has obscured.

“The Cedi is now responding to the hidden picture of our economic mismanagement. Too much hope in the dollar now. When you continue to lie about the economy, the exchange rate will expose you,” Prof. Mensah tweeted.

The Interbank forex rates from the Bank of Ghana as of May 15, 2024, showed that the Ghana Cedi was trading against the dollar at a buying price of 13.7161 and a selling price of 13.7299.

At a forex bureau in Accra, the dollar was being bought at a rate of 14.50 and sold at 14.85.

Against the Pound Sterli
ng, the Cedi is trading at a buying price of 17.2590 and a selling price of 17.2777.

At a forex bureau in Accra, the pound sterling was being bought at a rate of 17.90 and sold at a rate of 18.50.

The Euro traded at a buying price of 14.8350 and a selling price of 14.8497.

At a forex bureau in Accra, the Euro went for a buying rate of 15.45 and sold at 15.95.

The Cedi is now responding to the hidden picture of our economic mismanagement. Too much hope in the dollar now. When you continue to lie about the economy, ‘the exchange rate will expose you’.

Source: Ghana Web

The Ministry of Finance will now grant Value Added Tax (VAT) exemption on raw materials for local manufactur­ing of drugs, finished pharmaceuti­cal products, and medical supplies, the sector minister, Dr Mohammed Amin Adam, has announced.

This, he said, had become ur­gent due to the dwindling donor in-flow to the health sector.

The minister disclosed this during the opening of the 2024 Annual Health Summit organ­ised by the Ministry of Health in Accra.

The three-day summit on the theme ‘Quality Healthcare Delivery: A catalyst for achiev­ing Universal Health Coverage in Ghana’, brought together stakeholders within the health sector to track progress made and its performance in the previous year to inform decision-making moving forward.

The minister called on the ministry to strengthen the policy environment and support the de­velopment of the private health sector as part of the new think­ing to reform the health sector in Ghana.

‘The potential of the private health sector players and their contribution t
o our efforts to achieve the Universal Health Coverage (UHC) targets cannot be discounted,’ he added.

Another pertinent area he said government was committed to tackling was the mass exodus of healthcare workforce which could have dire consequences on quality healthcare service delivery in the country.

He expressed excitement about the community scorecard initiative which sought to ensure the involvement and participation of the community members in the design and delivery of quality healthcare services.

However, he indicated that there were still gaps in the demand for quality healthcare services which needed more work to be done to enhance communi­ty involvement.

Dr. Amin urged the minis­try to address the ‘medication errors’ in public health facilities, such as the incorrect dosages, frequencies, and drug-treatment mismatches which could lead to adverse effects and deaths, high­lighting the necessity for preven­tive measures and interventions to enhance patient safety.

The President’s Representa­tive
at the Ministry of Health, Dr. Bernard Okoe-Boye, said the year under review had been challenging for the health sector, saying some of the burgeoning issues included accumulated unpaid bills, shortage of health commodities, capping of NHIF and IGF of some Agencies, and inadequate numbers and distribu­tion of critical health profession­als and difficulty in attracting and retaining critical staff, especially in deprived/remote areas.

‘The recent intermittent power supply has negatively impacted healthcare service delivery in Ghana. Additionally, public hos­pitals in Ghana are struggling to pay their electricity bills. Health Service Providers especially be­moaned over 40 per cent of their revenue to pay electricity bills during our performance review engagement,’ he added.

Notwithstanding, Dr. Bernard Okoe-Boye said the sector had made significant improvements in providing access to healthcare to the populace.

Moving forward, he said the ministry was committed to pursuing service delivery inter­ventions us
ing the life course and one-health approach in a whole-of-government and whole-of-society approach to deliver high-quality healthcare, while building a better and more efficient health system to respond to public health emergencies.

The DP Lead, Ag. Country Representative, World Health Organisation (WHO), Dr Frank John Lule, reiterated WHO’s commitment to supporting the Health sector to achieve the uni­versal health coverage for all.

Source: Ghana Web

Businessman and founder of the defunct UT Bank and UT Holdings, Prince Kofi Amoabeng, has raised concerns about the rapid depreciation of Ghana’s currency, the Ghana cedi.

He indicated that what is even more troubling is that the country is in an election year and data shows that the Ghana cedi plunges greatly during election years, myjoyonline.com reports.

Kofi Amoabeng, a retired captain of the Ghana Armed Forces, added that he would not be surprised if GHS20 would be needed in exchange for $1 by the end of December 2024.

“My fear is that if the cedi to the dollar is now GHS15 and we are just about getting to an election; the records are there that every time there’s an election, there is a huge devaluation of the cedi.

“So, I wouldn’t be surprised if the cedi by the end of the year is hovering around GHS18 or 20,” he is quoted as having said on Joy News AM Show on Thursday, May 16, 2024.

The former banker explained that Ghana’s over-reliance on imports and the decline in exports are the main reasons f
or the dwindling value of the country’s currency.

He pointed out that currently, the country’s exports have reduced and that even its cocoa exports, which used to be significant, are now decreasing.

Source: Ghana Web

The Bank of Ghana (BoG) and the Development Bank Ghana (DBG), in collaboration with their digital partner Proxtera and supported by the Monetary Authority of Singapore (MAS), have announced plans to disburse US$100 million to MSMEs through the Ghana Integrated Financial Eco-system (GIFE).

The deal, announced during the 3i Africa Summit sessions and signified by a signing ceremony between DBG and Proxtera, aims to accelerate the disbursement of up to GHS1.83 billion via the wholly digital infrastructure set up by the GIFE programme.

It follows the early signs of success exhibited by GIFE after its launch at the 2022 edition of the Singapore Fintech Festival and its operationalization in the first half of 2023 with the pilot financial institution partner, Consolidated Bank of Ghana.

GIFE is currently a digital journey for MSMEs, starting with financial literacy and the creation of trusted credentials leveraging the global Universal Trusted Credentials framework.

It provides access to working capital and fac
ilitates cross-border trade with Asia and the ASEAN region. An innovative regulatory sandbox continues to support GIFE in challenging traditional disbursal frameworks to fast-track growth and development for local businesses.

This upcoming phase of GIFE will involve wider participation by more financial institutions, emphasizing scale and digital access to global trade markets with local financial and educational support.

Saurav Bhattacharyya, Chief Executive Officer of Proxtera, said, ‘We continue to proudly support GIFE as a founding partner. As the exclusive operational partner of the SME Financial Empowerment (SFE) programme and the operational, technology, and digital infrastructure provider for the implementation of GIFE, Proxtera continues to work with local ecosystem partners to grow the usage of trusted credentials.

‘We strongly believe that the ambitious target set by our partners will propel Ghanaian MSMEs into the global digital cross-border trade and financial highways,’ he added.

Commenting
on the deal, K Duker, Chief Executive Officer of DBG said: ‘We are excited about this partnership, especially for what it brings as part of the 3i Africa Summit. At DBG, we believe that this partnership with the Monetary Authority of Singapore and the GIFE programme mark a pivotal moment in DBG’s mission to provide sustainable finance solutions to Ghanaian businesses and facilitate multi-generational, sustainable economic growth.

‘DBG recognises the crucial role of SMEs in our country’s economy and the GIFE programme will further strengthen DBG’s ability to catalyse SME growth by ensuring that they get the financial solutions they need to achieve their full potential. SMEs are a key pillar of Ghana’s economic resilience, prosperity, and international competition, so I’m optimistic that our journey to unlock their potential will yield excellent results for our people and country.’

‘This memorandum further demonstrates BoG’s commitment as a central bank, to working with key stakeholders to explore innovative
financing models. It also further demonstrates our commitment to the Business Sans Borders initiative which we partnered with the Monetary Authority of Singapore to enhance MSME contribution to economic growth and in line with Government’s broader economic transformation goals,’ Dr. Ernest Addison, Governor of Bank of Ghana, said.

For his part, Sopnendu Mohanty, Chief FinTech Officer, MAS, said: ‘MAS has worked closely with Bank of Ghana since the announcement of the Financial Trust Corridor in 2020. The GIFE is an important step to foster closer collaboration between the two central banks and important emerging markets.

‘The GIFE is a rethink to potentially leapfrog traditional financial inclusion approaches with combined support mechanisms powered by smarter data that MSMEs and financial institutions can tap in based on their needs.’

Source: Ghana Web

Businessman and founder of the defunct UT Bank and UT Holdings, Prince Kofi Amoabeng, has raised concerns about the rapid depreciation of Ghana’s currency, the Ghana cedi.

He indicated that what is even more troubling is that the country is in an election year and data shows that the Ghana cedi plunges greatly during election years, myjoyonline.com reports.

Kofi Amoabeng, a retired captain of the Ghana Armed Forces, added that he would not be surprised if GHS20 would be needed in exchange for $1 by the end of December 2024.

“My fear is that if the cedi to the dollar is now GHS15 and we are just about getting to an election; the records are there that every time there’s an election, there is a huge devaluation of the cedi.

“So, I wouldn’t be surprised if the cedi by the end of the year is hovering around GHS18 or 20,” he is quoted as having said on Joy News AM Show on Thursday, May 16, 2024.

The former banker explained that Ghana’s over-reliance on imports and the decline in exports are the main reasons f
or the dwindling value of the country’s currency.

He pointed out that currently, the country’s exports have reduced and that even its cocoa exports, which used to be significant, are now decreasing.

Source: Ghana Web

The Bank of Ghana (BoG) and the Development Bank Ghana (DBG), in collaboration with their digital partner Proxtera and supported by the Monetary Authority of Singapore (MAS), have announced plans to disburse US$100 million to MSMEs through the Ghana Integrated Financial Eco-system (GIFE).

The deal, announced during the 3i Africa Summit sessions and signified by a signing ceremony between DBG and Proxtera, aims to accelerate the disbursement of up to GHS1.83 billion via the wholly digital infrastructure set up by the GIFE programme.

It follows the early signs of success exhibited by GIFE after its launch at the 2022 edition of the Singapore Fintech Festival and its operationalization in the first half of 2023 with the pilot financial institution partner, Consolidated Bank of Ghana.

GIFE is currently a digital journey for MSMEs, starting with financial literacy and the creation of trusted credentials leveraging the global Universal Trusted Credentials framework.

It provides access to working capital and fac
ilitates cross-border trade with Asia and the ASEAN region. An innovative regulatory sandbox continues to support GIFE in challenging traditional disbursal frameworks to fast-track growth and development for local businesses.

This upcoming phase of GIFE will involve wider participation by more financial institutions, emphasizing scale and digital access to global trade markets with local financial and educational support.

Saurav Bhattacharyya, Chief Executive Officer of Proxtera, said, ‘We continue to proudly support GIFE as a founding partner. As the exclusive operational partner of the SME Financial Empowerment (SFE) programme and the operational, technology, and digital infrastructure provider for the implementation of GIFE, Proxtera continues to work with local ecosystem partners to grow the usage of trusted credentials.

‘We strongly believe that the ambitious target set by our partners will propel Ghanaian MSMEs into the global digital cross-border trade and financial highways,’ he added.

Commenting
on the deal, K Duker, Chief Executive Officer of DBG said: ‘We are excited about this partnership, especially for what it brings as part of the 3i Africa Summit. At DBG, we believe that this partnership with the Monetary Authority of Singapore and the GIFE programme mark a pivotal moment in DBG’s mission to provide sustainable finance solutions to Ghanaian businesses and facilitate multi-generational, sustainable economic growth.

‘DBG recognises the crucial role of SMEs in our country’s economy and the GIFE programme will further strengthen DBG’s ability to catalyse SME growth by ensuring that they get the financial solutions they need to achieve their full potential. SMEs are a key pillar of Ghana’s economic resilience, prosperity, and international competition, so I’m optimistic that our journey to unlock their potential will yield excellent results for our people and country.’

‘This memorandum further demonstrates BoG’s commitment as a central bank, to working with key stakeholders to explore innovative
financing models. It also further demonstrates our commitment to the Business Sans Borders initiative which we partnered with the Monetary Authority of Singapore to enhance MSME contribution to economic growth and in line with Government’s broader economic transformation goals,’ Dr. Ernest Addison, Governor of Bank of Ghana, said.

For his part, Sopnendu Mohanty, Chief FinTech Officer, MAS, said: ‘MAS has worked closely with Bank of Ghana since the announcement of the Financial Trust Corridor in 2020. The GIFE is an important step to foster closer collaboration between the two central banks and important emerging markets.

‘The GIFE is a rethink to potentially leapfrog traditional financial inclusion approaches with combined support mechanisms powered by smarter data that MSMEs and financial institutions can tap in based on their needs.’

Source: Ghana Web

The West Africa Chartered Property Underwriter (CPCU) Society Chapter, an affiliate of the Institutes’ CPCU Society, an international organization with headquarters in the USA, organized a day-long seminar in Accra recently. The society’s objective is to promote ethical standards in insurance practice.

The Acting Commissioner of Insurance, Mr. Michael K. Andoh, who was the Special Guest of Honour, advised players in the insurance industry to desist from “premium undercutting” to help sustain the insurance industry.

Premium undercutting is the practice where an insurance company offers clients “unrealistically low premiums” in order to gain a competitive advantage over others, often below the acceptable rate limits set by the insurance regulator, the NIC.

According to him, premium undercutting remains a challenge to the insurance industry and denies it the necessary funds to develop.

Mr. Andoh gave this advice during a day-long seminar organized by the West Africa Chartered Property Underwriter (CPCU) Soci
ety Chapter.

Mr. Andoh said premium undercutting was against the ethics and standards of the insurance industry.

Though he could not give figures on how much undercutting costs the insurance industry, he said it was one of the reasons some insurance companies recorded underwriting losses.

The Acting Commissioner of Insurance stated that the seminar discussed technology, new trends, challenges, and opportunities in the insurance industry.

He said the low insurance penetration in the country was a result of the low adoption of technology and the failure on the part of some insurance practitioners to adhere to the standards of the profession.

The Global President of CPCU Society, Traci Adedeji, in her remarks, said the CPCU Society was established 80 years ago to promote professionalism and ethical standards in the insurance industry.

She said the Ghana chapter was established in October 2023 to promote the insurance industry in Ghana.

Ms. Adedeji urged practitioners in the insurance industry to build tru
st, pointing out that trust was crucial for the development of the insurance industry.

She encouraged insurance practitioners to prioritize the needs of customers above their interests.

The Senior Director, Analyst Gartner Inc, USA, Rajesh Narayan, in his remarks, urged players in the insurance industry to embrace technology.

He said technology was not meant to displace them from their jobs, but to help them become more efficient and reach more customers.

Justice Peprah Agyei, West Africa CPCU Society Chapter Interim President, in his address, said the association was established to elevate insurance practice in the sub-region.

He also mentioned that the association was created to facilitate networking and promote innovation in the insurance industry.

Source: Ghana Web

The New Patriotic Party (NPP) presidential candidate, Dr. Mahamudu Bawumia, has outlined strategies to significantly minimize government spending.

He pledged to reduce the government’s budget by GHS30 billion, equivalent to 3% of GDP, to free up funds for developmental projects to benefit the nation.

In pursuit of this goal, he noted that he plans to appoint a streamlined cabinet of fifty (50) ministers to manage the state’s affairs, as opposed to a larger body that strains the nation’s finances.

During a dialogue with the clergy in the Northern Region, he addressed how he would tackle the high costs associated with running the government.

“I have made it clear and even stated that I want to bring down government expenditure and the size of government by at least 3 percent of GDP, which is about GHS30 billion over the next four years, and I have also made it clear that I will have no more than 50 ministers, which is also to say I want to bring the size of government down,” he said as quoted by citinewsroo
m.com.

Dr. Bawumia is actively campaigning across regions, garnering support for the pending elections.

The general elections are set for December 7, 2024.

Source: Ghana Web