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The Bank of Ghana (BOG) has granted one of the country’s leading FinTech companies, IT Consortium Limited (ITC), an enhanced Payment Service Provider (PSP) license. The acquisition of the license, which is the highest license within the PSP category, follows the passage of the Payment Systems and Services Act, 2019 (Act 987) which creates an enabling regulatory and supervisory framework for non-bank entities such as FinTechs to participate in Ghana’s payment ecosystem. Aside providing financial technology solutions in areas such as insurance, investments, pensions, loans, etc, the license will also enable ITC to pursue services in merchants’ aggregation, print personalized EMV Card, deploy POS solutions, facilitate International remittance services and payment aggregation among many other services. The license further allows other companies to plug in through IT Consortium’s systems to provide these services under its direct supervision.

Oil prices fell on Tuesday on worries that new restrictions to stem surging US and Asian coronavirus cases could threaten a recovery in fuel demand just as OPEC+ producers prepare to increase output from August. Brent crude futures fell 44 cents to $42.28 a barrel by 0840 GMT and US West Texas Intermediate (WTI) crude futures slid 53 cents to $39.57. The governor of California, the United States’ most populous state, on Monday ordered bars to shut and restaurants, movie theatres, zoos and museums to cease indoor operations as coronavirus cases soared. California’s moves follow the recent reinstatement of some restrictions in other states, such as Florida and Texas. New restrictions were also introduced in Asia and Australia. Under the existing supply pact, OPEC+ is set to taper its record production cut of 9.7 million barrels per day (bpd) to 7.7 million bpd from August through December. The oil market is moving closer to balance as demand gradually rises, OPEC’s secretary general said on Monday.

The Minority in Parliament has cautioned government against what it terms as unnecessary borrowings from the Ghana National Petroleum Corporation, GNPC. Governments have over the years either borrowed directly from GNPC or externally on their books. The development has affected activities relative to the core mandate of the corporation. Currently government owes GNPC over $300 million dollars. Speakings to Starr News after the approval of $500 million dollars for 2020 work plan for the GNPC, the deputy ranking member for the Committee on Mines and Energy Dela Sowah urged the Finance Minister to cease treating the corporation as a financial institution. In a related development, Parliament on Tuesday approved a €56,153,500.000 facility from Deutsche Bank AG and Global Services (UK) Limited for the construction of health facilities in parts of the country.

The UK’s economy rebounded more slowly than expected in May, growing just 1.8% from the previous month, as the gradual easing of lockdown had a modest impact. Manufacturing and house building showed signs of recovery in May as some firms saw staff return to work. But the Office for National Statistics said the economy was “in the doldrums”. As a result of big contractions in previous months, the UK economy is now 24.5% smaller than it was in February, the ONS added. The return to economic growth in May was described as “disappointing” by economists, who had expected an expansion of 5% or more.
UK ‘faces tax rises or spending cuts’.The increase came after a fall of 6.9% in March and a record 20.4% decline in April. In the three months to May, the economy shrank by 19.1% compared with the previous three-month period, the ONS said.

Three of the biggest US banks have set aside almost $28bn (£22.3bn) amid concerns about customers defaulting on loans due to the pandemic. The decision helped to push Wells Fargo to its first quarterly loss since the financial crisis and weighed on the financials of other banks. JP Morgan Chase profits roughly halved, while Citigroup’s plunged 73%. The firms’ executives warned of a painful economic downturn ahead, despite recent positive data. JPMorgan said it expected the US unemployment rate to remain at nearly 11% at the end of the year, compared to the 6.6% it forecast in April. The bank said it had set aside more than $10bn for losses, including nearly $9bn to build its reserves.

The UK’s mobile providers are being banned from buying new Huawei 5G equipment after 31 December, and they must also remove all the Chinese firm’s 5G kit from their networks by 2027. Digital Secretary Oliver Dowden told the House of Commons of the decision. It follows sanctions imposed by Washington, which claims the firm poses a national security threat - something Huawei denies. Mr Dowden said the move would delay the country’s 5G rollout by a year. The technology promises faster internet speeds and the capacity to support more wireless devices, which should be a boon to everything from mobile gaming to higher-quality video streams, and even in time driverless cars that talk to each other. 5G connections are already available in dozens of UK cities and towns, but coverage can be sparse. Mr Dowden added that the cumulative cost of the moves when coupled with earlier restrictions announced against Huawei would be up to £2bn.

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