Category: Finance

The newly appointed Managing Director of the National Investment Bank (NIB), Tweneboa Kodua Fokuo, has defended his dual role as a political candidate and head of the struggling state-owned bank.

Fokuo, the New Patriotic Party’s (NPP) parliamentary candidate for the Manso Nkwanta Constituency in the 2024 election, has found himself at the centre of controversy following his recent appointment to lead the NIB.

Opposition voices, particularly from the National Democratic Congress (NDC) and civil society, have raised concerns regarding potential conflicts of interest inherent in this arrangement.

Assuming his role as Managing Director on Monday, May 13, succeeding outgoing MD Samuel Sarpong, Fokuo has remained resolute in the face of criticism.

Despite opposition, he maintains that he is well-equipped to navigate the demands of his political aspirations and professional obligations.

Speaking in an interview on Joy FM on May 13, 2024, Fokuo dismissed concerns raised by various parties as unfounded.

“I have
no challenges in managing my time between ensuring the bank is run properly and also doing my duties in my leisure time as a P.C.

“There has not been a time that I have had a challenge in running these duties,” myjoyonline.com quoted him to have said.

Source: Ghana Web

The total debt accrued by the government and expected to be paid to Independent Power Producers (IPPs) is projected to hit $450 million by the end of this year.

According to a Citi Business News report, the situation will worsen if discussions on the restructuring of the debt for the energy sector fail to progress.

The government is currently engaging with IPPs over a debt revamp of about $1.46 billion spanning several years.

While the government is said to be nearing an agreement with the IPPs, power producers continue to insist that a significant portion of legacy debt payments must be made before a final agreement on the debt revamp is reached.

The report adds that the government has yet to formally finalize the preconditions of the debt restructuring deal, even though win-win terms with the IPPs have been reached.

Currently, the IPPs insist that the government make payments on the bulk of the legacy debts before progress can be made on the debt restructuring. Some IPPs are demanding a 15% down paymen
t, while others are proposing different payment terms.

The latest development is expected to worsen the situation in the energy sector.

For example, the ECG has been paying about 70 percent of the invoices, while the remaining 30 percent has yet to be honored as of July 2023.

The accumulation of these debt payments is expected to reach about $450 million by the end of the year if negotiations fail to progress, according to sources who spoke with Citi Business News.

Furthermore, any delays in debt payments or debt restructuring could lead to power supply disruptions.

Since 2023, Independent Power Producers have threatened to withdraw their services from the national grid, citing the government’s inability to honor their legacy debts.

Source: Ghana Web

President Nana Akufo-Addo has stressed the importance of embracing technological advancements to drive prosperity across the continent.

In his remarks as the 3i Summit opened in Accra – with policymakers, investors and innovators from across Africa united in their ambition to harness financial technology as a catalyst for economic growth and development on the continent – he highlighted the transformative potential of modern technologies in reshaping Africa’s economic landscape.

‘To realise fully these benefits, we must embrace the technologies that are reshaping the global economy and make them work for us,’ President Akufo-Addo stated, underlining the need for proactive engagement with digital innovations.

The President consequently called upon governments across Africa to prioritise substantial investments in digital infrastructure, which he described as the foundational framework for achieving shared prosperity. He stressed that a robust digital infrastructure would serve as the backbone for economic d
evelopment, facilitating efficient communication, commerce and innovation.

‘Governments across Africa should invest heavily in the digital infrastructure that will form the backbone of our shared prosperity,’ he stated.

This aligns with a growing consensus among African leaders regarding the pivotal role of technology in driving sustainable growth and development.

Despite this and a wider digital infrastructure deficit, African countries continue to fall behind more advanced nations in their spending on digital architecture.

It is estimated that African countries spend about 1.1 percent of their gross domestic product (GDP) on digital investment, while advanced economies spend an average of 3.2 percent – leading the Brooking Institute to state: ‘Thus, business-as-usual is not an option as it will continue to widen the digital divide and drive further marginalisation of Africa’.

President Akuffo-Addo is convinced that bridging the digital divide will prove crucial in attaining full benefits from the Afric
an Continental Free Trade Area (AfCFTA).

‘These are not mere statistics. They are a testament to the boundless potential that lies within our grasp, a promise of a brighter future for all Africans,’ the President said, pointing to the AfCFTA’s aim of lifting 30 million people out of extreme poverty and boosting incomes for 68 million more by 2035, increasing intra-African trade by 52 percent and generating over US$450billion for the continent’s GDP.

Ghana has emerged as a leader in fintech innovation, the president noted, with 17 million citizens now holding digital IDs linked to critical services.

Mr. Akufo-Addo stressed that supportive policies are key, touting Ghana’s success with ‘e-government initiatives expanding financial inclusion to once unimaginable heights’.

Bank of Ghana (BoG) Governor Dr. Ernest Addison highlighted the country’s booming mobile money sector, with over 900 billion transactions last year.

‘Ghana stands tall among nations of the world with one of the highest mobile money penetra
tion rates; proof of our people’s ingenuity and adaptability,’ he remarked.

But challenges remain across Africa, Dr. Addison pointed out, with a ‘general lack of investor visibility’ hindering many local fintech startups from scaling up to meet diverse financial needs.

‘The regulatory aspect is another major issue, as fintechs must navigate requirements and compliance standards which are non-negotiable in Africa’s financial industry,’ the BoG chief stated.

Finance minister Dr. Mohammed Amin Adam noted that fintech offers unprecedented opportunities to bolster financial inclusion and empower more individuals to participate meaningfully in the formal economy.

‘The landscape is vast, from mobile payments and digital lending to blockchain remittances and AI credit assessment. These drive efficiency, mitigate costs and unlock value across diverse sectors,’ Dr. Adam said.

He further called for an ‘African agenda’ built on strategic public-private partnerships, investments in digital infrastructure and the esta
blishment of regional fintech hubs to close the digital divide.

‘The efficacy of fintech should be gauged by its ability to maximise technology’s contribution to inclusive growth,’ he stated.

And while Ghana has made ‘remarkable strides’, Dr. Adam said, a conducive macroeconomic environment is essential – outlining measures to control inflation, reduce currency depreciation and accelerate disbursements from development partners.

‘As we convene, it is incumbent on us to acknowledge the strides Ghana has made in nurturing a vibrant fintech ecosystem, solidifying our position as a frontrunner in innovation across the continent,’ the finance minister said.

The summit featured platforms for fintech startups to pitch investors, discussions on women in tech and using fintech for inclusion, plus insights from business leaders.

Source: Ghana Web

Finance Minister, Dr. Mohammed Amin Adam has tasked the Ghana Revenue Authority (GRA), to have a renewed focus on staff welfare as a catalyst for boosting revenue collection efforts nationwide.

He gave the charge during an engagement with officials of the Customs Division of the GRA at the Aflao border on Friday, May 10, 2024.

In his brief address to the officials, Dr. Amin Adam emphasized the intrinsic link between staff well-being and revenue mobilization, stressing that a supportive and conducive work environment is essential for maximizing productivity and achieving revenue targets.

‘At the heart of revenue collection lies the welfare of our staff. Yes, we are here to collect revenue, but your welfare remains paramount. With improved staff welfare, we can boost morale and enhance productivity, ultimately leading to increased revenue collection,’ the Minister said.

In line with his commitment to improving staff welfare, Dr. Amin Adam directed the Commissioner-General of the Ghana Revenue Authority (GRA
) to ensure the availability of necessary logistics and resources for Customs officials. He said the provision of necessary resources and logistics, including the renovation of staff accommodation, will create an environment conducive for optimal performance.

‘With a focus on staff welfare, we can unleash the full potential of our workforce and drive revenue growth,’ remarked Dr. Amin Adam.

The Commissioner-General of the GRA, Julie Essiam used the opportunity to assure the Minister of her outfit’s commitment to improving staff welfare and providing adequate logistics to enhance government’s revenue.

She said equipping personnel with the latest knowledge and skills in tax collection procedures, auditing techniques, and customer service, would enhance their ability to navigate complex situations and effectively serve taxpayers, thereby positioning the GRA as a leading agency government agency in terms of efficiency.

‘Our staff are the backbone of revenue collection. By prioritizing their well-being and equ
ipping them with the necessary tools, we can significantly improve our efficiency and effectiveness,’ she said.

The Minister’s compassionate stance resonated deeply with the Customs officials, who were visibly moved and appreciative of his humane focus on their welfare.

Dr. Amin Adam was also in the company of Customs Commissioner, Brigadier-General Ziblim Ayorrongo and other high ranking members of the GRA, as well as the Ministry of Finance.

Source: Ghana Web

The Managing Director of the Electricity Company of Ghana (ECG), Samuel Dubik Mahama has thanked President Nana Addo Dankwa Akufo-Addo for entrusting him with the opportunity to serve in a critical sector of Ghana’s economy.

Recounting his two-year tenure as ECG boss, Samuel Mahama in a LinkedIn post shared five key achievements.

He listed the implementation of digital solutions to streamline cashless payment and billing processes in the power system while combating distribution losses and corruption.

Dubik Mahama touted the successful revamping of the ECG PowerApp, which resulted in a surge of active users from 500,000 to over 3.5 million.

‘Elevated the company’s monthly revenue from GHS 400 million to an impressive GHS 1 billion,’ he wrote.

‘Significantly reduced meter request backlogs through the Loss Reduction Project (LRP), achieving an injection of 275,000 meters into the system as of May 10, 2024,’ Dubik Mahama added.

The ECG boss further highlighted the ongoing exercise of replacing outdated met
ers to comply with the power distribution company’s enhanced meter management system across operational regions.

‘We are committed to transparency, and soon, we will be sharing comprehensive updates with our valued customers, detailing our efforts to enhance operational efficiency for a more reliable power supply. I extend my sincere gratitude to all staff members for their unwavering support through both challenges and triumphs,’ Dubik Mahama’s post concluded.

In May 2022, President Akufo-Addo appointed Samuel Dubik Masubir Mahama as the MD of ECG.

He took over from Kwame Agyeman-Budu, who reached the statutory retirement age of 60 in May 2022.

Source: Ghana Web

The Ghana Union of Traders Associations (GUTA) has expressed concern over the persistent depreciation of the cedi against major trading currencies.

According to the Union, the situation is having a dire effect on the capital of its members who are already reeling from the impacts of the economic challenges in the country.

In a statement sighted by GhanaWeb Business, President of GUTA, Dr. Joseph Obeng, called on the government to urgently take steps towards addressing the cedi’s depreciation.

‘GUTA expresses deep frustration over the current depreciation of the cedi, which is creating a big mess for the business community, especially, the trading sector. This seeming crisis coupled with the ever-rising freight charges from Asia are rendering the cost of doing business unbearable,’ Dr Joseph Obeng wrote.

He added that, ‘The current state of affairs has far-reaching implications and has caused prices of goods and services to increase for the consuming public,’

The GUTA president also outlined some major ef
fects of the cedi’s depreciation especially on Ghanaians businesses as follows:

The inflationary pressures resulting from the depreciating cedi have pushed the cost of goods through the roof, making it increasingly difficult for businesses to stay afloat.

The purchasing power of the consuming public has also been affected, thereby reducing the turnover of businesses.

Repayment of loans to the bank has then become extremely difficult.

The rising freight charges, compounded by customs duties benchmarked in dollars at the port, are crippling trade and commerce, leading to untold hardships for businesses and consumers alike.

It has increased unpredictability or forecast of businesses.

The value of credit purchase increases, thereby, making it very difficult for traders to repay the goods bought from their overseas suppliers, leading to higher indebtedness to businesses.

GUTA added that it remains keen to ‘collaborate with the government and other stakeholders on this issue.’

Source: Ghana Web

The Public Utilities Workers’ Union (PUWU) of the Trades Union Congress (Ghana) has issued a strong rebuttal to allegations made by Vice President Dr. Mahamudu Bawumia regarding a ransomware attack on the Electricity Company of Ghana (ECG).

In a press release dated May 13, 2024, the union contested the Vice President’s assertion that ECG’s ICT staff were responsible for sabotaging the company’s digital payment system.

According to Dr. Bawumia’s address at the 14th Regional Conference of Heads of Anti-Corruption Agencies in Commonwealth Africa, the ICT staff had deliberately introduced ransomware into ECG’s systems and demanded a ransom.

He also claimed that ECG’s revenue had significantly increased following the digitalization of its payment system.

However, the PUWU has refuted these claims, stating that the Vice President’s remarks were inaccurate and misleading.

The union highlighted that the Economic and Organised Crime Office (EOCO) had conducted a forensic audit on the ECG Power App in September 20
22, involving third-party IT professionals, which could have compromised the security of ECG’s network.

The union also clarified that the first ransomware attack occurred on September 28, 2022, and was reported to the Cyber Security Authority.

“The Union respectfully DISAGREES with the statement of His Excellency the Vice President on his presentation relating to digitalization and sabotaging of the ICT system at ECG.

‘In September 2022, EOCO commenced forensic audit on the ECG Power App: They demanded for the payment platform architecture, databases, Application Programming Interface (API) documentation and the power app custom source code, including credentials to the backend prepayment systems.

‘EOCO did not use its internal staff but had to use third-party IT professionals for the assignment. Consequently, it was not only ECG IT staff who had access to the ICT infrastructure of ECG.

‘Could the sharing of the source code with external parties have compromised ECG network security in relation to the sc
ale of the September 2022 attack?’ the statement read.

Subsequently, National Security took control of ECG’s ICT system, during which the second and more severe attack happened on November 11, 2022.

The PUWU emphasized that it was the ECG ICT staff who led the recovery efforts, not National Security as suggested by the Vice President.

‘In the midst of the takeover, the second and most severe of the ransomware attacks occurred on the 11th November 2022, at the time the National Security personnel had both full physical access and software administrative rights to all ECG systems.

‘The National Security arrested and detained some ECG ICT staff for days but were later released.

‘We wish to state that it was the ECG ICT staff who used their system recovery strategy and worked tirelessly day and night to restore the systems and even assisted the National Security operatives on how to operate the ECG systems.

‘The ECG ICT staff led the recovery effort, with the support of E-crime Bureau, a cyber security firm
, invited by the ECG Board,’ the statement continued.

PUWU also corrected the Vice President’s figures on ECG’s revenue, citing the company’s 2019 Annual Report and the 2023 SIGA-ECG Performance Contract, which show different figures than those mentioned by Dr. Bawumia.

The union praised the ECG staff for their dedication to digitalization, particularly the ICT professionals who have been instrumental in developing and deploying the ECG Power App since 2016.

‘ECG’s financial performance is a matter of public record, as indicated in the company’s 2019 Annual Report. The average monthly revenue for the period 2017 to 2019 was around GHS532.7 million. In the 2023 signed SIGA- ECG Performance Contract, the average monthly revenue is GHS631.3 million as at early 2022. These documents are available to the public on ECG website.

‘We further wish to put on record that the enhancement of aspects of digitalization into ECG work processes by the current Management has improved convenience to our customers and commit
ment exhibited by staff has been the pivot of any observed improvement especially in the area of revenue mobilization.

‘The staff of ECG have no motivation whatsoever to sabotage any process, procedure or system designed to improve the work processes and as such must be commended,’ it added.

The PUWU further called for recognition of the staff’s contributions to national development and urged stakeholders to refrain from disparaging remarks.

‘The accusations of sabotage and resistance to digitalization are not only unfounded but also damaging to the morale and reputation of our hardworking members.

‘The ECG ICT department has been at the forefront of digitalizing revenue collection for decades, a fact that seems to have been overlooked,’ it stated.

The press release, signed by General Secretary Michael Adumatta Nyantakyi, reaffirmed the commitment of ECG staff to enhancing efficiency and service delivery, despite the challenges they face, including attempts by some stakeholders to push for the privatisat
ion of ECG.

The union said it stands firm in its defence of its members and their unwavering dedication to the company’s digitalization journey.

Source: Ghana Web

News24, a major news portal in South Africa has published a report alleging that an indigenous company that did some work in Ghana paid bribes to some top politicians.

The report specifically mentioned Tamale South Member of Parliament, Haruna Iddrisu, who allegedly benefitted from bribes to the tune of over US$2.5 million (47 million rands).

The News24 investigative report zoned in on the activities of the Singh siblings, Rushil and Nishani, who operated the Ghana Infrastructure Company (GIC) between 2017 and 2022.

Portions of the report sighted by GhanaWeb gave a breakdown of how different sums of money were transmitted to the lawmaker through others and in some cases by way of financial support for projects.

Monies were paid in lieu of profit share from a subcontract for the construction of Buipe Hospital and for the construction of Haruna’s private residence.

Payments by Singh and GIC to Haruna Iddrisu

Between 2015 and 2020, Nishani Singh used several methods to pay Idrissu directly, or to others at
his request or for his benefit, at least R47 million

The majority of the money was paid directly from GIC’s account to various suppliers, or to GIC’s director in Ghana, Asumah Dokurugu.

This excludes amounts paid for several overseas trips to London and at least one trip to Indonesia and South Africa.

Payments breakdown:

R31.8m

Payments to Dokurugu as well as donations to political campaigns.

R1.6m

To Might Ghana Ltd, a company owned by Ibrahim Abdul Jalil, who is also patron of Idrissu’s non-profit, the Haruna Institute.

R898 808

Directly to Jalil.

R7.3m

For the construction of Idrissu’s house.

R4.4m

Profit share from a subcontract for the construction of Buipe Hospital.

Source: Ghana Web