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BUSINESS NEWS | GHANA AND BEYOND

The Bank of Ghana has clarified that all banks and financial institutions will remain opened to the public during the two-week partial lock-down of parts of Accra and Kumasi from Monday, March 30, 2020. This follows the announcement by President Nana Akufo- Addo indicating that some essential service providers such as banks and other financial institutions will not be affected by the partial lock-down. Regardless of that announcement, some Ghanaians have been trooping to the banks and other financial institutions to make withdrawals. A statement from the Bank of Ghana, also urged the banks and other financial institutions to operate with a minimum number of staff and make available Automated Teller Machines (ATMs) and all digital platforms as part of measures to help curtail the spread of the coronavirus.


The effect of the COVID-19 pandemic could affect Ghana’s growth rate from 7 percent on average to 2.5 percent if the situation persists till the end of 2020, President Akufo-Addo has stated. The President, who made the announcement last Friday when he announced a partial lock-down in parts of Accra, Kumasi, Tema, and Kasoa, said the projection was made by the Bank of Ghana in the worst-case scenario. Ghana has so far confirmed 152 cases, with five deaths and two recoveries. President Akufo-Addo however assured that government will do all it can in its effort to stabilize the economy to protect the vulnerable.

The African Development Bank (AAA) has raised an exceptional US$3 billion in a three-year bond to help alleviate the economic and social impact the Covid-19 pandemic will have on livelihoods and Africa’s economies. The Fight Covid-19 Social bond, with a 3-year maturity, garnered interest from central banks and official institutions, bank treasuries, and asset managers including Socially Responsible Investors, with bids exceeding $4.6 billion. This is the largest Social Bond ever launched in international capital markets to date, and the largest US Dollar benchmark ever issued by the Bank. It will pay an interest rate of 0.75%.

The Ghana Revenue Authority (GRA) is to announce bank accounts and email addresses to taxpayers in the country to enable them honour their tax obligations as anti-coronavirus lockdown forces it to close its offices in parts of the country from Monday. Government in its latest move to stem the spread of the deadly novel coronavirus in communities has announced a two-week partial lockdown of Accra, Tema, Kasoa and Kumasi effective 1:00 a.m. Monday. Non-essential service providers and business in the affected areas described as hotspots will be shut down and movement of people restricted as confirmed cases of the virus surges to 152 with 5 deaths and two recoveries in two weeks.

The United Bank for Africa Plc (UBA) has announced a donation of over $14 million through the UBA Foundation, to a comprehensive pan-African response to the fight against the Coronavirus (COVID- 19) pandemic. The donation will provide significant and much-needed support to Nigeria and 19 other African countries. A statement issued in Accra by the Bank said the donation would go to supplying relief materials, critical care facilities, and financial support to Governments. The UBA support programme will be allocated as follows: $2.8 million to Lagos State Government in Nigeria, $1.4 million to Nigeria’s Federal Capital Territory, Abuja and $2.8 million to the remaining 35 states in Nigeria. The rest are $4.2 million to UBA’s presence countries in Africa, $2.8 million for Medical Centres with equipment and supplies and a Free Telemedicine call centre facility.

The airline and hospitality industries in Ghana are to receive a six-month moratorium on principal loan repayments as part of a string of measures announced by the government to prevent a floundering economy due to the global coronavirus outbreak. This means operators of airlines, hotels and restaurants, as well as car rentals, food vendors, taxis, and Uber operators, will be exempted from repaying the principal of their loans with the various banks as the country go on a two-week lockdown from Monday, March 30 to contain the spread of the virus. President Nana Addo Dankwa Akufo-Addo who announced this Friday night also said all other sector credit exposures will be reviewed on a case by case basis.

The first oil refinery shutdowns in India and Europe were announced on Friday while global refinery runs drop like a stone in response to plunging demand as countries worldwide implement lockdowns. Italy’s API said it would close operations temporarily at its Ancona refinery, which has capacity of 85,000 barrels per day (bpd). In India, top refiners Indian Oil Corp (IOC.NS) and Mangalore Refinery and Petrochemicals (MRPL.NS) declared force majeure, with MRPL in the process of shutting down its entire plant. Global fuel demand is set to drop by as much as 15% to 20% in the second quarter after the coronavirus pandemic, which has killed more than 22,000 people, halted most worldwide air travel and prompted the national lockdowns to keep people at home. The resulting slump in demand for oil products, along with Saudi Arabia and Russia’s decisions to increase crude output after last month’s collapse of OPEC’s oil supply pact, is expected to overwhelm refiners as storage capacity dwindles.

The National Petroleum Authority (NPA) has assured that gas filling station shall remain open during the two weeks lockdown in some parts of Ghana. It has therefore encouraged the general public to stop panic buying. In a statement issued by its corporate affairs department, NPA says it “has noted with concern the panic buying of petroleum products as a result of anticipated shortages especially in areas affected by the two weeks mandatory lockdown in both Greater Accra and Ashanti regions which is to take effect at 1:00am on Monday 30th March 2020.”

President of the Ghana Institute of freight forwarders (GIFF), has revealed that, the supposedly superior UNIPASS system has recorded only one transaction since the directive from the Senior Minister, Yaw Osafo-Marfo to start operations at about 49 entry points. This according to Edward Akrong, is a clear indication that Ghana Link and its overseas partner, CUPIA Korea, do not have a tried and tested system to takeover single window operations from West Blue and Ghana Community Network Services, (GCNet). Mr Akrong, said importers, freight forwarders and other stakeholders, continue to use West Blue and GCNet system, seeking to avoid the delays associated with the UNIPASS system.

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